3060 EXTENSIONS OF REMARKS February 21, 1985 EXTENSIONS OF REMARKS COMPREHENSIVE OIL POLLU­ the form of H.R. 85. I used the same I then called this legislation to the TION LIABILITY AND COMPEN­ number to remind my colleagues of personal attention of a number of my SATION the promise made to move on oil pollu­ Senate colleagues, highlighting the tion legislation right after hazardous need to compensate those who are vic­ HON. MARIO BIAGGI substances pollution legislation was in timized by oilspills and to provide suf­ OF NEW YORK place. Hon. GERRY STUnns, new chair­ ficient funding for the cost of oil re­ man of the Subcommittee on Coast IN THE HOUSE OF REPRESENTATIVES moval. I indicated that a number of Guard and Navigation, moved rapidly compromises had been worked out and Thursday, February 21, 1985 and effectively and, by May 1981, was that I felt the legislation was accepta­ e Mr. BIAGGI. Mr. Speaker, the able to get this legislation reported to ble to all parties. I noted that further Committee on Merchant Marine and the House. However, due to pressing delay would mean continued inad­ Fisheries has for more than 10 years problems within other committees equate compensation for losses due to been directly involved in the develop­ having joint jurisdiction, this legisla­ oil pollution and the continuing patch­ ment of legislation to provide a com­ tion was not acted upon. work of conflicting State and Federal prehensive, equitable, and effective Undaunted, during the early days of laws. A number of additional changes means of establishing liability and pro­ the 98th Congress, I once again intro­ were proposed to the oil pollution viding compensation for cleanup costs duced a comprehensive oil pollution li­ title; but, in the waning days of the and injuries resulting from oilspills. As ability and compensation bill on 98th Congress, H.R. 5640 failed to be a matter of fact, the committee has March 6, 1983. H.R. 2115 was identical enacted-primarily due to problems in­ been involved with oil pollution liabil­ to H.R. 85 of the prior Congress. Hon. volving hazardous substances liability ity and compensation issues since prior GERRY STUDDS introduced H.R. 2222, and compensation. to the catastrophic grounding and which was similar to my bill but which Mr. Speaker, I have briefly discussed breakup of the crude oil tanker Torrey restricted coverage to vessels and pro­ the history of oil pollution liability Canyon off the coast of Great Britain vided for the eventual adoption of an and compensation so that Members in 1967. international treaty. Hon. DON YOUNG can readily see that the issue has been I have been personally involved with introduced H.R. 2368, which was also long and carefully considered. I still these issues since I was first elected to similar to my bill, except that it pro­ feel that oil pollution legislation and Congress in 1969. During the 95th vided for administration of the oil pol­ hazardous substances legislation Congress, as chairman of the Subcom­ lution fund by a nonprofit corpora­ should be handled separately-and mittee on Coast Guard and Naviga­ tion. this is evidenced by what happened, tion, I was able to see to the passage of These bills served as the focus of once again, during the last Congress. oil pollution liability and compensa­ consideration by the Committee on Therefore, together with a number of tion legislation-in the form of H.R. Merchant Marine and Fisheries and my colleagues, I am cosponsoring oil 6803-by the House by a recorded vote led to a compromise in the form of pollution liability and compensation of 332 to 59. H.R. 3278, which was reported to the legislation-hopefully, for the last During the 96th Congress, in Sep­ House on August 2, 1983 CRept. 98-340 time. This is a major piece of unfin­ pt. 1). We then urged the House Com­ tember 1980, I again brought a similar mittee on Public Works and Transpor­ ished business from prior Congresses bill to the House floor. H.R. 85 was tation to act favorably on H.R. 3278 that continues to have considerable bi­ passed by a recorded vote of 288 to 11. and cited the voluminous record of partisan support. It failed of enactment due to two hearings and prior legislative action For many years, this type of legisla­ other areas of environmental concern: that we felt fully supported the need tion has had strong administration Spills of hazardous substances and for immediate action. support. About 4 years ago, however, abandoned hazardous waste dump­ The bill was generally acceptable to the administration reversed its posi­ sites. I don't think I need to remind the industry, the administration, envi­ tion and opposed the legislation due anyone of the Love Canal issues and ronmental groups, and public interest to, I believe, a misunderstanding of problems that were generated and groups. As a matter of fact, prior ad­ the effects of funding and operation of that are still being generated. At that ministration opposition to a bill of this the oil pollution fund. Fortunately, time, I felt oil pollution should be han­ type was reversed on April 30, 1984, by the administration reversed its posi­ dled separately; however, they were a letter from the Secretary of Trans­ tion in 1984 and is again in strong sup­ joined into one bill. portation to the Committee on Public port of this legislation. The Senate took the most important Works and Transportation. This sig­ The administration continues to be hazardous substances spill provisions nificant new development clearly dem­ concerned with the oil pollution from the House-amended H.R. 85- onstrated that a bill acceptable both threat and has also been active in at­ containing both oil and hazardous sub­ to the administration and the Con­ tempting to improve international oil stances-and combined them with the gress was possible. pollution liability and compensation hazardous waste dumpsite provisions On August 8, 1984, Hon. JOHN schemes. In 1984, this concern culmi­ of H.R. 7020. In a spirit of compromise BREAUX-a member of both the Com­ nated in a diplomatic conference that and in the national interest, I agreed mittee on Merchant Marine and Fish­ amended existing treaties so as to be to support the revised version of H.R. eries and the Committee on Public more compatible with U.S. interests. 7020, which did not contain my oilspill Works and Transportation-moved the This will be a significant contribution provisions. During the waning days of provisions of H.R. 3278 into an amend­ to arriving at solutions that are inter­ the 96th Congress, H.R. 7020 was ment to title V of H.R. 5640-a bill to nationally as well as domestically ac­ adopted by the Congress and signed amend the Comprehensive Environ­ ceptable. This bill will also be the ve­ into law on December 11, 1980, as mental Response, Compensation, and hicle for solving these international oil Public Law 96-510. Liability Act of 1980. On August 10, pollution problems. During the 97th Congress, I again 1984, the oil pollution amendment was Public concern over the need for this introduced a comprehensive oil pollu­ adopted, and the House passed H.R. type of legislation was generated when tion liability and compensation bill in 5640 by a recorded vote of 322 to 33. the tank vessel Torrey Canyon ground-

e This "bullet" symbol identifies statements or insenions which are not spoken by the Member on the floor. February 21, 1985 EXTENSIONS OF REMARKS 3061 ed off the southwest coast of England part of spillers for the cost of cleanup. Minimize the bureaucracy. in 1967, spilling approximately 100,000 These acts, however, do not address I reiterate my prior conviction that tons of crude oil that fouled the themselves to the question of damages this bill is practicable in application­ shores of the British Isles and the other than for the cost of cleanup. and fully considers the needs of those coast of France. Public concern was Three other Federal statutes have who are victimized by oil pollution. I again highlighted in 1969 when a pro­ been enacted which do address the firmly believe that we must act now in duction platform off Santa Barbara, problems of liability for damages. In the public interest to provide a com­ CA, suffered a blowout that dis­ the 1973 Trans-Alaska Pipeline Au­ prehensive oil pollution liability and charged untold amounts of oil before thorization Act, the Congress-for the compensation scheme. I, therefore, it could be brought under control. first time-addressed the issue of li­ urge the strong support of all Mem­ Since then, numerous other casual­ ability for oil pollution damage from bers in cosponsoring this important ties have highlighted the oil pollution vessels other than cleanup costs. A legislation.• problem and the need for a national similar scheme of liability and com­ and comprehensive oilspill liability pensation was also established in the and compensation scheme-a most Deepwater Port Act of 1974 for oil pol­ STOP THE RED INK noteworthy one being the grounding lution damage from offshore facilities of the tank vessel Argo Merchant off constructed pursuant to the act or Nantucket in 1976. One particular cas­ from vessels at those facilities. The HON. BILL LOWERY ualty-the grounding of the very large Outer Continental Shelf Lands Act OF CALIFORNIA crude carrier Amoco Cadiz-of 228,513 Amendments of 1978 established a IN THE HOUSE OF REPRESENTATIVES tons-off the coast of France on similar liability and compensation March 16, 1978-is a more recent and scheme for oil pollution damage relat­ Thursday, February 21, 1985 memorable reminder of the need to es­ ed to OCS activities. e Mr. LOWERY of California. Mr. tablish such a system. The concepts of this legislation have Speaker, perhaps no single issue has A significant casualty that affected had broad support from the users of captured the attention of the Congress our coastal environment and economic oil, from the oil industry itself, from and the President more than the ever­ well-being was the blowout of Ixtoc I the insurance industry-which does growing Federal budget deficits. How­ in the bay of Campeche, Mexico on the underwriting-and from many en­ ever, it has never been more clear that June 3, 1979. The impact of this spill vironmental groups. The bill I am co­ the American people do not believe and the resulting oil pollution of the sponsoring should continue to receive raising taxes will stem the flow of red Texas coastal environment and the overwhelming bipartisan support. The ink. Rather, every possible attempt waters of the Gulf of Mexico were ex­ bill: must be made to reduce Government tensive. The litigation arising out of Establishes strict liability for the spending. this incident has been extensive and owners and operators of the source of I would like to commend to my col­ protracted. Had the proposed legisla­ oil discharges; leagues the remarks of Mr. George tion been in place, the alternative Provides for a simple and practical Marotta, as reprinted in the Houston would have been a fair, adequate and system for the compensation of a Post on November 5, 1984. Mr. Mar­ prompt compensation to those who broad range of oil pollution damage; otta is a senior research fellow at the were victimized. Therefore, it contin­ Imposes reasonable and insurable Hoover Institution on War, Revolution ues to be necessary to provide for ade­ limits of liability on the owner or oper­ and Peace at . Stanford University. He quate compensation to those who ator of the vessel, thereby insuring speaks with a great deal of expertise suffer damage from the effects of oil frontline responsibility for responding when it comes to the workings of the pollution incidents. While existing oil to an oil pollution incident; Federal bureaucracy-he has served in pollution legislation permits compen­ Creates a backup compensation fund the Federal Government in eight sation for cleanup and removal costs, to respond to damage claims that are agencies under seven Presidents from there is no legislation that adequately not satisfied; Franklin D. Roosevelt to Gerald R. and timely compensates those who Guarantees that those who have Ford. have been victimized. been harmed by oil pollution will be I hope that the recommendations Prevention of oilspills is still the quickly and fairly compensated for outlined below will be carefully consid­ most effective means of protecting our their economic loss; ered during the upcoming budget de­ coastal and estuarine environment Encourages prompt and complete liberations. from damage. The Port and Tanker cleanup of oilspills; [The article f ollows:l Safety Act of 1978-which I was privi­ Provides for the establishment of an leged to sponsor and pursue during oil pollution fund supported by a tax [From the Houston Post, Nov. 5, 19841 the 95th Congress-has been effective on crude oil and petroleum products; TuRNING OFF THE SPIGOT ON U.S. RED INK in this area. However, we cannot pre­ Provides for superseding duplicative THE DEFICIT MUST BE DEALT WITH, AND IT'S clude the possibility of oilspills occur­ funds and procedures that now exist GOING TO HURT WHEN WE DO IT ring due to mechanical failures and in various Federal and State statutes; the bubble boy," and today, nameless to us though not to them, are could not himself be touched, profoundly with my colleagues Mr. ANDREWS and dying every day because the rain does not touched us all. We knew his name. His name Mr. FIELDS, I am reintroducing a reso­ fall, the crops do not grow, and there is no was David. He knew it was time to go home, lution requesting the President award food for them to eat-no food for the par­ as he said, and he did. Hamlet said, and the Presidential Medal of Freedom to ents, no food for the young, many of whom David would have understood, "The readi­ David Phillip Vetter, to be presented are being abandoned along the way as the ness is all."e to his family in his memory. people trek through the barren countryside in a virtually futile search for something to David was born in 1971 with severe eat. EMERGENCY WETLANDS combined immunodeficiency CSCIDJ. Millions more in a continent most of us RESOURCES ACT OF 1985 This disease leaves its victims unable have never seen are doomed to that pros­ to fight any disease; the most benign pect, a grinding horror of almost unimagina­ or innocuous germ will kill. ble proportions, and few of us would be HON. JOHN 8. BREAUX As the oldest survivor of SCIO, greatly surprised to open the newspaper to­ OF LOUISIANA morrow and read of still another devasta­ IN THE HOUSE OF REPRESENTATIVES David spent much of his time at the tion miles away from us. Of course, people world-renowned Baylor College of die every day-even children-some of them Thursday, February 21, 1985 Medicine-Texas Children's Hospital in quite horribly, and all of them alone. That Mr. Mr. Houston, TX. His life was spent in there is sadness in the world, and horror, e BREAUX. Speaker, I am sterile chambers with filtered air, does not come as a surprise. Why, then, does today introducing legislation to pro­ sterilized food, and sterilized toys. For the death of the boy David, an isolated tect our Nation's rapidly diminishing a time, with a special NASA sterile-en­ event and a small one in the annals of histo­ wetlands resources. The bill, the vironment spacesuit, he was able to ry, touch us so? Emergency Wetlands Resources Act of venture beyond the confines of his Less for the pity, perhaps, than for its sol­ 1985, is similar to legislation that was itary grandeur. Death, like life, is individual introduced in the last session of Con­ chamber to see movies; to visit the real and unique, and David's was no exception, world. gress and which passed the House of although the circumstances surrounding his Representatives on September 20, For 16 fleeting days last February, few years were exceptional. There was no one else like him of his age; he was the only 1984. The only major difference in this David was free from his life of isola­ year's legislation is that we have delet­ tion. He was able to take joy and one in the world. He was born defenseless, the victim of a ed that portion of the bill which relat­ pleasure in the small routine things rare condition that rendered his body in­ ed to the construction of the Oregon we all take for granted; his mother's capable of fighting the most minor infec­ Inlet project in North Carolina. kiss, the touch of his family. tion, the most ordinary germ of the kind Mr. Speaker, this legislation is the David did not allow his medical con­ that the rest of us carry with us all the result of several years of hearings by dition to hinder his spirit, his interest time. Seconds after his birth he was placed in a sterile environment, a germ-free isola­ the Subcommittee on Fisheries and in learning, or his will to survive. His Wildlife Conservation and the Envi­ continued bravery and tenacity in the tion chamber where his air was filtered, his food and water purified, and his toys chemi­ ronment on the problem of the loss face of such overwhelming adversity cally cleaned. and degradation of wetlands in this contributed to one of the most out­ As he grew, he moved to larger and larger country. As you know, wetlands are standing medical achievements of our cells, separated from the common life of the those periodically inundated areas time. In life, and death, David is a world out there by a bubble of plastic which that we once believed were wastelands. medical pioneer whose contributions he could not leave nor could others enter We have since learned of their value, to medical immunology, including the else he would certainly die. And when he not only for fish and wildlife, but also pathology of AIDS, and immunology did leave it, he knew that there could be no return to it because he would bring the con­ for flood control, ground water re­ of cancer and other diseases is im­ taminated world with him and its germs charge, and pollution control. Studies measurable. would proliferate in the sterile atmosphere. done by a number of scientists tell us Shortly after his death, William After the seals of his bubble were broken that the value of preserved wetlands is McPherson, of the Washington Post three weeks ago, he did indeed die as he often many times greater than those wrote a moving and eloquent editorial, almost certainly knew he would. The experi­ that have been converted to agricul­ the text of which follows: mental bone-marrow transplant of last Oc­ tural or other uses. tober did not give him the immunity his Mr. Speaker, David has not been doctors had hoped. One of our more interesting hear­ termed a "medical miracle." But it is Until he left his last chamber 15 days ings focused on wetlands losses in the miracle of David, his warmth and before his death, David had never felt the those States that constitute the Mis­ humor, which shall be missed. His touch of an ungloved hand on his own, sissippi flyway. During that hearing, physical world was so very small, but never been held or caressed or kissed direct­ we learned that coastal wetlands losses his heart, his spiritual reach, were so ly, never felt a naked hand on his brow or in my own State of Louisiana total very large. He exemplified the best of played with another child, never knew dirt. He was a boy set uniquely apart, and the almost 40 square miles per year, our Nation. The Presidential Medal of magnitude of his isolation puts in an altered almost all of it attributable to erosion. Freedom is our highest civilian honor. perspective the isolation that ls the common From Louisiana up through Missouri, David fully deserves this honor, and I human lot. Kafka might have done it Jus­ and along the Ohio River, we are ask my colleagues to rise in whole­ tice. David's isolation was pitiable, but it losing approximately 300,000 acres of hearted support of this resolution. goes beyond pity; it was in fact awesome and bottomland hardwoods per year. The 3064 EXTENSIONS OF REMARKS February 21, 1985 Mississippi River bottomland hard­ To expand the user-pay concept, the tion with other programs, such as Pitt­ wood ecosystem, which once encom­ bill would make two changes in exist­ man-Robertson, in the wildlife area. passed almost 22 million acres, has ing law. First, it would raise the price Title III would provide for an accel­ been reduced to less than 3 million of the duck stamp from $7.50 to $15 eration of the wetlands inventory and acres. In the upper areas of the over a 5-year period. As a Member of contains conforming amendments to flyway, in the prairie pothole region, Congress from a district that probably allow for the use of LWCF funds to wetlands losses approach 30,000 acres has more duck hunters than anywhere purchase wetlands areas. per year. else in the country, you can imagine Mr. Speaker, in spite of its worthy There are a number of mechanisms that I approached this proposal with purposes, I have some misgivings rela­ that have been employed by both Fed­ some trepidation. We conducted an in­ tive to reintroducing this legislation. eral and State governments to halt the formal poll of duck hunters in Louisi­ With respect to the raising the price destruction of wetlands, but the oldest ana and more than 80 percent were of the duck stamp and establishing and most successful method to date willing to pay more for their duck user fees for wildlife refuges, many has been acquisition. In 1934, at the stamps as long as it was assured that Members probably know that the urging of J.N. "Ding" Darling, an the contributed money would go for Office of Management and Budget has ardent conservationist who was also a further wetland acquisition and pro­ recently proposed to withhold money talented political cartoonist, Congress tection. It is a tribute to the concern from the Boating Safety and Sport passed the so-called Duck Stamp Act. for conservation among hunters that Fish Restoration Fund, the Wallop­ This act requires hunters of migratory their support has been overwhelming. Breaux Fund. This fund, which was es­ waterfowl to purchase and possess a Second, we proposed that entrance tablished by legislation passed last Federal duck stamp. Proceeds from fees be charged at refuges where it is year, is made up largely of the pro­ the sale of the stamps are placed in feasible and that the proceeds of these ceeds of two classic user fees-excise the migratory bird conservation ac­ fees be placed in the migratory bird taxes on fishing tackle items and the count and used to purchase habitat for conservation account. Persons holding gas tax paid by recreational boaters. migratory waterfowl. The acquisitions valid duck stamps or Golden Eagle As many Members recalled, when we are directed by a bipartisan commis­ Passports would be admitted to any raised the gas tax from 5 cents to 9 sion made up of the Secretaries of In­ refuge. The philosophy behind this cents in 1982, this administration was terior, Transportation, and Agricul­ proposal was that people other than quick to assure taxpayers that we were ture and two Members each from the hunters who benefited from refuges not raising taxes, we were increasing House and the Senate. Since the pro­ should also contribute to the expan­ user fees. They said the same thing gram was established in 1934, more sion of the refuge system. Once again, about the expanded tax on fishing than $225 million has been spent for we approached the issue with caution. tackle items. Now, 3 years later, they habitat acquisition and more than 3 We asked the groups whose members are telling us that we should put those million acres of waterfowl habitat would be most affected by this propos­ funds in the General Treasury. Unless have been purchased. al to comment on it. They were over­ we can resolve this issue satisfactorily In 1961, Congress passed the Wet­ whelmingly supportive. with the Office of Management and lands Loan Act to provide a means to The second title of the bill provides Budget, it would be senseless to pro­ accelerate the acquisition of migratory for wetland acquisition and conserva­ ceed with any additional user fees. In waterfowl habitat. This law, as amend­ tion out of the Land and Water Con­ particular, I will not subject the hun­ ed, authorizes $200 million to be ap­ servation Fund CLWCFJ. We believe ters and fishermen of this country, propriated as a loan against future that the rapid disappearance and deg­ who have been willingly supporting duck stamp revenues and can be used radation of wetlands demonstrates the fish and wildlife conservation through only for the purchase of migratory wa­ need to make wetland acquisition and the payment of user fees for over 50 terfowl habitat. The authorization, of conservation a high priority for years, to any increases in these fees which more than $150 million have moneys from the fund. The title pro­ unless we get a firm commitment from been appropriated, expires at the end vides for both Federal and State acqui­ this administration that it will admin­ of this fiscal year. sition projects. A number of States ister the Wallop-Breaux Fund in ac­ Mr. Speaker, in spite of the contri­ have been involved in wetland acquisi­ cordance with the law and will not at­ bution of waterfowl hunters, the fact tion and we believe that a State pro­ tempt to divert those funds in the is that we have not done enough to gram would be particularly valuable. future. protect wetlands through acquisition. It should be noted, however, that the I have also given considerable In the early 1950's, the Fish and Wild­ State's share of the proposed $75 mil­ thought to reintroducing legislation life Service, the States, and the Inter­ lion is "up to" $50 million. It could calling for an annual appropriation of national Association of Fish and Wild­ well be that the Federal acquisition $75 million for wetlands acquisition. life Agencies set a goal for the protec­ share could be much higher. However, while this level of commit­ tion of 12.5 million acres-8 million We have also provided that the ment is high, we must also remember acres by the Federal Government and money could be used for preservation that the need is particularly great. 4.5 million acres by the States-of wa­ and enhancement projects. While we Quite simply, if we do not accelerate terfowl habitat needed to maintain do not anticipate that a large portion our wetlands acquisition program, populations that existed at that time. of the funds will be used for these there will soon be nothing left to buy. To date, 1.6 million acres of the Feder­ projects, we believe in some instances We should also remember that these al share remain to be acquired, with they may be appropriate. In parts of funds are matching the many, many an estimated cost of approximately Louisiana, for example, wetlands are millions of dollars contributed by $1,000 per acre. eroding at an incredible rate. While we sportsmen through the purchase of This legislation would increase the do not envision this legislation as halt­ duck stamps. Finally, these funds will funds available for wetland acquisition ing that erosion, we do believe that come from the Land and Water Con­ in a number of ways. Our philosophy demonstration projects such as fresh servation Fund, a separate fund that behind the bill was relatively simple­ water diversion and other water con­ comes mainly from Outer Continental we should continue to expand the user trol projects could protect vital areas Shelf revenues and which has been es­ pay concept and we should provide ad­ and help us develop methods for deal­ tablished for the purpose of acquiring ditional support from the Federal ing with the problem on a larger scale. natural areas. Government to match the contribu­ The legislation provides that grants We will be having hearings on this tions of those who have been support­ to the States are to be on a 3-to-1 legislation in early March and if we set ing wildlife conservation for decades. matching basis. This has been a tradi- the proper assurances from the admin- February 21, 1985 EXTENSIONS OF REMARKS 3065 istration, we hope to move it quickly The dollar price of wheat, for exam­ H.R.1191 in the 99th Congress. I hope my fellow ple, has fallen by 10 percent since 1980 A bill to provide emergency financial Members will lend it their support.e while nearly doubling in terms of assistance to farm banks major European currencies. American Be it enacted by the Senate and House of producers of food have sold their Representatives of the United States of H.R. 1191 goods for fewer and fewer overpriced America in Congress assembled, dollars and have still been substantial­ SHORT TITLE HON. BERKLEY BEDELL ly undersold by foreigners who receive SECTION 1. This Act may be cited as the OF IOWA much more for their goods in terms of "Emergency Farm Bank Assistance Act". IN THE HOUSE OF REPRESENTATIVES their own currencies. NET WORTH ASSISTANCE FOR FARM BANKS Thursday, February 21, 1985 Change in wheat prices for various SEc. 2. Section 13 The Corporation is hereby direct­ amending the Federal Deposit Insur­ United Kingdom pound...... +89 ed to actively use the authority contained in ance Act for 5 years. This legislation French franc...... +113 this subsection to purchase net worth certif­ directs the FDIC to extend and to ac­ Italian lira...... + 112 icates of qualified institutions which make tively use its present authority, estab­ Spanish peseta...... + 127 more than 25 percent of their loans to per­ sons who use the proceeds of such loans to lished in 1982 to assist savings and Economists estimate that a 40-per­ engage in the production of agricultural loan institutions, to purchase net cent rise in the value of the dollar products or livestock in the United States. worth certificates from well managed costs U.S. producers $2 per bushel of "CB> For purposes of this paragraph, a farm banks. With over 25 percent of soybeans, 48 cents per bushel of corn qualified institution- their gross lending in agricultural and 80 cents per bushel of wheat. "(i) satisfies the requirements of para­ loans, these are the banks which re­ With 2.5 billion bushels of soybeans graph <2> if such qualified institution flect both the difficulties and the hope produced per year, 3 billion bushels of has a net worth equal to or less than 6 per­ for recovery in the current economic wheat and 8 billion bushels of com, cent of its assets; "(ii) is not required to satisfy the provi­ crisis in the Midwest. this comes to $11 billion on just three sions of paragraph C2>; The Nation's 1,441 farm banks ac­ commodities. The current extraordi­ "(iii) satisfies the net worth requirements count for only 29 percent of all banks, narily high value of the dollar, which of paragraph C5)(A) if such qualified institu­ yet in the fourth quarter of 1984 they has contributed to successive all time tion has a net worth greater than 4 percent accounted for 61 percent of all bank world trade deficits, reaching $123 bil­ and less than or equal to 6 percent; failures. This is up from 35 percent in lion in 1984, cannot continue indefi­ "Civ> satisfies the net worth requirements the third quarter, 19 percent in the nitely. of paragraph C5> if such qualified institu­ first half of 1984, and 13 percent for The Emergency Farm Bank ~ist­ tion bas a net worth greater than 2 percent will and less than or equal to 4 percent; and the whole of 1983. In June 1984, 400 ance Act provide well managed "Cv> satisfies the net worth requirements farm banks reported losses compared farm banks and their rural communi­ of paragraph C5> if such qualified institu­ with 282 in December 1983. This rapid ties with 5 years to weather the cur­ tion has a net worth greater than 0 and less escalation of farm bank failures and rent financial storm and to adjust in than or equal to 2 percent.". difficulties illustrates the current an orderly fashion to new, long-term <2> The amendment made by paragraph crisis and ominous economic trend in realities in world markets. Except in CU is hereby repealed five years after the the 13 Midwestern States which ac­ the case where the FDIC has discov­ date of the enactment of this Act. count for 85 percent of all farm banks. ered Inismanagement, farm banks may (b) Section 206Ca> of the Garn-St Germain Depository Institutions Act of 1982 is In seven States over half the banks issue net worth certificates when their amended by striking out "three years" and are farm banks. capital to assets ratio drops below the inserting in lieu thereof "eight years".• These banks are generally small, required 6 percent. Farm banks with a with average assets of $27 million com­ capital ratio greater than 4 percent pared with assets of $199 million for but less than 6 percent may issue net CREDIT CARD FINANCE the average nonfarm bank. Some rural worth certificates to the FDIC in an CHARGES TARGETED FOR RE­ communities and many small business­ amount not to exceed 50 percent of DUCTION es and individuals have depended ex­ operating losses in the 12 months Just clusively on a single farm bank for past. Farm banks with a capital ratio HON. MARIO BIAGGI generations; 84 percent of farm banks greater than 2 percent but less than 4 OF NEW YORK are more than 50 years old. When one percent may issue net worth certifi­ IN THE HOUSE OF REPRESENTATIVES of these banks fails, the economic dis­ cates not to exceed 60 percent of oper­ ruption and dislocation can be sub­ ating losses. Those with capital ratios Thursday, February 21, 1985 stantial. from zero to 2 percent may issue net e Mr. BIAGGI. Mr. Speaker, Ameri­ Farm credit has been undermined in worth certificates not to exceed 70 can consumers are paying through the recent years by the decline in com­ percent of operating losses for the pre­ teeth every time they use their credit modity prices and export markets vious 12 months. cards. That is why I am introducing a which have weakened cash flow cover­ The Emergency Farm Bank ~ist­ bill today to lower the finance charges age of unprecedented real interest ex­ ance Act unfortunately will not save on credit card accounts by at least 5 penses and driven down asset values. all the well managed farm banks nor percentage points. However, the crisis in the Nation's all the good, efficient farmers that are The problem this bill seeks to cor­ heartland is not the result of any inev­ in trouble. It is, however, one modest, rect is really quite simple. While banks itable market force. It is the result of responsible action that we can take are obtaining money to loan to their a particular set of Government eco­ immediately that will be of enormous customers at a discount rate of about 8 nomic policies which distort the world assistance to many marginal farm percent from the Federal Reserve, markets and bleed the region of tens banks and their small business and in­ those same banks are turning around of billions of dollars each year. dividual customers. I believe that we and charging their credit card custom­ Recent U.S. economic policies have owe it to ourselves and to our Nation ers as much as 19 percent interest. Ob­ stimulated some industries but they to do all that we reasonably can do in viously, that is wrong. Just as the eco­ have caused the dollar to appreciate this emergency situation. I welcome nomic upswing has allowed banks and by 80 percent since 1980, stifling dollar your support for H.R. 1191. other credit card issuers to secure commodity prices and U.S. exports. The text of H.R. 1191 follows: money at dramatically reduced rates, 3066 EXTENSIONS OF REMARKS February 21, 1985 so should consumers be allowed to outstanding, with interest being added of training, on-the-job, which experts benefit from lower credit card interest on at outrageous and unjustified rates. agree is the most effective, and pro­ rates. Mr. Speaker, much of the credit for duces $4 in private sector training for My bill is both simple and fair. It our Nation's economic upturn has every dollar in lost Federal revenues. states that "the rate of interest been given to increased consumer Mr. Speaker, we believe this propos­ charged on any consumer credit trans­ spending habits. We must do every­ al is consistent with the Treasury plan action involving a credit card shall not thing possible to encourage those for tax neutrality. The Treasury plan be more than 5 percentage points habits to continue and lower credit continues investment incentives for re­ higher than the discount rate on 90- card finance charges would help to ac­ search and development, and for plant day commercial paper," which is an ac­ complish that very worthwhile objec­ and equipment, but fails to acknowl­ curate and commonly used standard tive. I urge my colleagues to join me in edge the human element in competi­ reflecting what banks are paying for this important cause and am hopeful tiveness. Our proposal removes the their short-term money. this legislation receives the prompt bias that otherwise exists in the Treas­ Based on the current 8.55 percent and favorable consideration it de­ ury plan, and makes it truly neutral. discount rate on commercial paper, serves. Our approach also allows individuals this means that credit card issuers At this time, Mr. Speaker, I wish to who have IRA's to withdraw up to would be able to charge their custom­ insert the full text of my legislation: $4,000 over 5 years, without penalty, ers no more than 13.55 percent in fi­ H.R.1197 to pay for job retraining. According to nance costs. Banks currently charge A bill to amend the Truth in Lending Act to IRS statistics, this provision would their credit card customers about 18 limit the rate of interest which may be cover over 13 million working Ameri­ percent in interest, and some depart­ charged on credit card accounts cans, a surprising number of which are ment stores charge up to 24 percent. Be it enacted by the Senate and House of largely middle- and lower-income earn­ In my home State of New York, the Representatives of the United States of ers. average interest charge on credit card America in Congress assembled, That sec­ The bill also provides that the par­ purchases is 19.2 percent. tion 106 of the Truth in Lending Act <15 ticipation of displaced workers in an Mr. Speaker, this legislation is mod­ U.S.C. 1605) is amended by adding at the eligible training program will not dis­ eled after a similar credit card interest end thereof the following new subsection: "(f) The rate of interest charged on any qualify these workers from unemploy­ rate policy adopted by the State of Ar­ consumer credit transaction involving a ment compensation to which they are kansas. In that State, they have the credit card shall not be more than 5 per­ otherwise entitled. same 5 percent cap on credit card in­ centage points higher than the discount Furthermore, Mr. Speaker, these terest rates as proposed in my bill, and rate on ninety-day commercial paper in measures are not intended to replace banking officials there claim to still be effect at the Federal Reserve bank in the or duplicate existing training pro­ making plenty of money. Federal Reserve district in which the card grams such as JTPA or displaced Admittedly, finance charges are nec­ issuer is located.".• workers programs, but are intended to essary to help cover administrative stimulate a more realistic, better co­ costs and the risk of loaning unsecured H.R. 1219, THE NATIONAL TRAIN­ ordinated, and comprehensive use of money, in addition to allowing credit ING INCENTIVES ACT OF 1985 resources for training. card issuers a margin of profit. But, I think we in the Congress would all the Arkansas situation proves that a 5- HON. WILLIAM F. CLINGER, JR. agree that we must move away from percent cap on finance charges above OF PENNSYLVANIA the failed approaches of previous Fed­ the discount rate is more than enough IN THE HOUSE OF REPRESENTATIVES eral training efforts, and toward a to meet those needs. It should be Thursday, February 21, 1985 more forward looking effort which noted, too, that finance charges are considers ways in which government, not the only source of funds to credit • Mr. CLINGER. Mr. Speaker, on business, and individuals can work to­ card issuers. Retailers pay credit card behalf of Congresswoman NANCY gether to better deal with changing issuers at least 2 percent of the value JOHNSON and 31 of our colleagues, I economic events. of the goods or services charged, and have introduced today the National A more detailed explanation of the card users pay anything from $18 to Training Incentives Act of 1985, a bill principal provisions of the proposal $50 in annual fees for the right to use which will provide incentives to both follows: plastic money. Suffice it to say that employees and employers for retrain­ costs to credit card issuers vary accord­ ing. AN EXPLANATION OF THE NATIONAL TRAINING INCENTIVES ACT OF 1985 ing to economic conditions, so by tying I joined with Mrs. JOHNSON and a Fundamental weaknesses in the U.S. work finance charges to the discount rate, number of our colleagues, from both force were revealed during the last reces­ we are allowing for those variances, sides of the aisle, last year in sponsor­ sion. Incentives to train or retrain workers while at the same time ensuring that ing similar legislation. We have been were virtually non-existent. Many of those the consumer is also treated fairly. encouraged by the support which the displaced from their old jobs were either ill­ The exorbitant and artificially in­ bill has received including the Presi­ equipped to enter a new occupation or fi­ flated credit card interest rates we are dent's Committee on the Next Agenda, nancially incapable of acquiring new skills. now being forced to pay can be blamed the House Republican Research Com­ Moreover, employers and workers alike were on a number of factors. They include a mittee on the First One Hundred poorly served by the Employment Service very high consumer credit demand; Days, and also groups directly involved and by the nationwide system of unemploy­ ment benefits provided as income assistance. the consumer's unwillingness to shop in retraining efforts such as the Amer­ In many cases benefits ran out without fa­ around for the best deal on credit ican Society for Training and Develop­ cilitating a meaningful transition to gainful cards; and consumer ignorance about ment. employment or to a new occupation. just how much they are actually This proposal does not require large The intent of this legislation is to provide paying in credit card interest. Some Federal outlays or a complex delivery incentives for worker training, both through form of consumer protection is needed system, but instead encourages work­ employer and individual incentives, to ex­ to offset these factors and my bill ers and employers to prepare for inevi­ amine the cost, feasibility, and expected would serve that important purpose. table changes in job requirements, benefits of a nationwide job bank system, and to assess the possibility of using non­ Authorities estimate that last year technological demands, and skills profit community-based organizations to Americans charged some $293 billion levels. assist low-skilled individuals in finding work. worth of goods on the 703 million The bill does this by providing em­ Title I of the bill is designed to assist credit cards that are currently in cir­ ployers with a 25 percent tax credit structurally unemployed workers by allow­ culation. Of that $293 billion, about for training expenses over a 5 year his­ ing them to use for retraining funds invest­ $108 billion is equiva­ Service, which has been criticized fre­ obtained job counseling within the last year, lent to 5% of the current administrative quently for not meeting the needs of and meets certain basic requirements under budget for the U.S. Employment Service. the unemployed. Prescribed in this bill the unemployment compensation law may Title IV amends the Job Training Partner­ is an examination by the Secretary of make withdrawals from IRAs or annuities ship Act to instruct Private Industry Coun­ Labor of the feasibility, cost, and ex­ for training purposes. Those who have re­ cils the practice of law to program, any cooperative education, or any year period, which is indeed a modest "white males." Clara faced her share other program designated by the Secretary investment that leverages $2.4 billion of discrimination within her profes­ of Labor. The training tax credit conforms sion. The district attorney of San to existing carryback and carryforward pro­ in additional private sector per year expenditures on retraining and ac­ Francisco, while making his closing ar­ visions found in the tax code which apply to gument, described Ms. Foltz in this the R&D credit. cords the benefits of having a better Title III of the bill directs the Secretary trained work force. manner: "She is a woman, she cannot of Labor to report to Congress within one The National Training Incentives be expected to reason: God almighty year on the extent to which a nationwide Act also lets unemployed individuals decreed her limitations." job bank system can be expected to increase draw on their individual retirement ac­ Ms. Foltz represented many indigent employment opportunities in each state, its counts without the prescribed 10 per­ defendants in criminal matters and cost, and its adaptability to existing unem­ cent interest penalty to pay for re­ was struck by the inequity of a system ployment services. The Secretary must also that provided publicly employed assess in the report the feasibility of using training. Money put into IRA's is in­ nonprofit, privately-operated job-referral tended as an investment, and it is only skilled prosecutors but left indigents services for the referral of individuals to fair to allow the use of this money for to the varied talents of volunteers.

51-059 0 -86--7 1Pt. 3! 3068 EXTENSIONS OF REMARKS February 21, 1985 Clara conceived of the idea of a county sion and for her tireless search for Unfortunately, the law is not clear public defenders office. She drafted equity under the law for all.e and for some taxpayers, the expenses the "Foltz defender bill." In 1921, may be in large part picked up by after years of legislative struggles, the Uncle Sam and the rest of the Na­ NO TAX DEDUCTIONS FOR TAX tion's taxpayers. bill was enacted into law in California. EVASION In 1964 the board of supervisors of My legislation would nail down the Santa Clara County adopted an ordi­ issue once and for all. nance establishing a public defenders HON. FORTNEY H. (PETE) ST ARK The effective date of the bill is office to provide legal assistance to in­ OF CALIFORNIA today. It is designed to make nonde­ digents in criminal, juvenile and IN THE HOUSE OF REPRESENTATIVES ductible the type of May seminars ad­ Thursday, February 21, 1985 vertised by one group and which I par­ mental health cases. Judge R. Donald tially reprint here. People can still Chapman was the first public defend­ •Mr. STARK. Mr. Speaker, I am attend these meetings; they would not, er. Since 1964 the Office of the Public today introducing a bill which would however, be able to deduct the ex­ Defender of Santa Clara County has clearly and once and for all deny all penses. provided competent legal service to tax deductions for expenses of attend­ over 375,000 persons. Illustrating the ENJOY 6 TAX-DEDUCTIBLE DAYS IN NASSAU OR ing overseas seminars or conventions ACAPULCO OR ZURICH-AND DISCOVER How respect for the quality of its person­ which include discussions on how to To MAKE YouR AssETs As SAFE AS GoLD nel, the last three Governors of our avoid U.S. taxes. Your choice of three delightful locations State have appointed 11 members or Tax evasion is bad enough, but for to bring yourself up to date on the NEW im­ former members of the public defend­ the organizers of these seminars to be portance of . . . the Swiss bank and the ers office to the trial and appellate ju­ advertising them as being 100 percent Swiss survival investments. diciary. tax deductible just rubs salt in the YOUR CHOICE OF THREE DELIGHTFUL LOCATIONS On April 27, the friends of the wounds of the rest of the Nation's And what a choice! Na.ssau in the sunny public defenders office will gather in honest taxpayers. Bahamas-just when the cold weather is San Jose to celebrate 20 years of serv­ For many individuals, all or part of settling in up north. Acapulco, Mexico's ice to our people. We will be honoring such convention expenses may not be most beautiful vacation spot-and pleasant­ deductible and advertisements blithely ly warm in mid-December. Or Zurich in May Sheldon Portman and his many years of 1985-spring in the Swiss Alps! If you of outstanding service to the public de­ saying they are 100 percent deductible join us in Zurich, you may also wish to come f enders office. We will all remember are wrong and may well constitute along for the optional trips to Vienna and and thank Clara Shortridge Foltz for mail fraud or other types of false ad­ Budapest, two of Europe's loveliest ancient opening the doors of the legal profes- vertising. capitals.

SEMINAR DATES AND FEES

Arrive Depart Person couple Place seminar Fee

Nassau, the Bahamas ...... Nov. 30, 1984 ...... •...... ·-······· Dec. 6, 1984 ...... $300/ $575 1 $300/$575 ~~~wiMtz~:iid :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: : :::::::::::::::::::::::::: : :: ::: ~ ls. ~::s- ::::: :: :::::::::::::::::: :: :::::::::::::::::: : :::::: : ::::::::::: : ::::::::::::: : =~u~rs :::::::::::::: :: ::::::::: : :::::::::::::::::::::::::::::::::::::::::::::::::::::::::: $495/$900 1 $250/$450 ~'i:~~u ~~~g1~ =~~~wf1~1u r ~'t~ lria;f::: :::::::::::: ::::: :::: :: ::::::::::::::::::::::::::::::::::::: ::~ ~~ : Im:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: =: ~~: Im:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: $150/$275

THE TAX DEDUCTION CAN CUT YOUR COST IN Saturday will be given over to private important to register as soon as possible. HALF meetings with the Austrian experts . can't attend. in half with the tax deduction. In fact, if Tuesday, May 28, the group leaves Vienna If you prefer to make separate travel or you live in a state or city with an income by boat along the beautiful Danube River, hotel arrangements, you should still register tax, the savings could run over 60%. and arrives in Budapest, where the Hungari­ with "X", simply by calling the toll-free The seminar and travel costs are reasona­ an Chamber of Commerce is your host. Wednesday and Thursday will feature meet­ number. You may, of course, charge all ble, all by themselves. And with the tax sav­ costs to your credit card. ings, they give you one of the world's great ings at the Hungarian Chamber of Com­ merce and the Foreign Exchange Division To protect your privacy, we are not listing travel bargains. Na.ssau ... Acapulco ... the hotels where we will hold the seminars. Switzerland-how else could you travel in of the Hungarian National Bank, plus sight­ luxury at such a modest cost? seeing. You should not miss "The Paris of HEAR THESE SUBJECTS EXPLAINED CLEARLY, IN Eastern Europe." OPTIONAL EXTRA SEMINARS IN VIENNA AND PLAIN LAYMAN'S LANGUAGE-DON'T FORGET TO 100 PERCENT TAX-DEDUCTIBLE BUDAPEST BRING ALL YOUR OWN QUESTIONS, TOO! Not only is the seminar fee tax-deductible. Financial privacy: how the Swiss safe- If you select the Zurich Seminar in May So are your meals, your hotel, your travel 1985, you may also visit Vienna and/or Bu­ expenses. In the opinion of our tax attor­ guard it, while Uncle Sam keeps chipping dapest and attend our Vienna Seminar. You ney, the seminar clearly meets ms require­ away at it. arrive in Vienna directly from Zurich on ments for the full tax deduction. How to open a Swiss bank account legally, Wednesday, May 22, 1985. Thursday and If you've been thinking about attending privately, safely. Sunday are devoted to sightseeing; Friday one of my seminars, let me leave you with Which type of Swiss bank account best and Saturday to . . . one thought: do it NOW. This is an election fits your needs? THE AUSTRIAN BANKING SEMINAR year. The Administration is doing its best to How to communicate with your Swiss In Austria your co-host will be the prestig­ put a pretty face on the economy. But after banker-privately. ious "X". The presentations will feature ten November 4, how long before the makeup starts to fade? Not long, with the national Investments now being recommended by experts, including x, y and z. Their subjects: Swiss counsellors for their private overseas The Economy of Austria; debt soaring by $200 billion a year. There­ fore, doesn't it make sense to check out how clientele: a wide choice of foreign stocks and Austria: the little-known money haven; offshore mutual funds. investing in European Antiques; to put some of your money safely away in the Austrian Banking Alternative; Switzerland? You can still do it, legally and How to keep some of you money over­ how to use your Bankhaus Deak account; privately. But how long can that last? seas-even if the government imposes ex­ the present world economy; HOW TO REGISTER change controls again. the history and culture of Austria; and Since the seminars usually sell out and The Marc Rich case: how the Swiss wall of Austrian legal considerations for nonresi- since enrollment is strictly limited to 130 for financial privacy withstood every effort of dents. Nassau or Acapulco and 175 for Zurich, it is the U.S. government to break it down. February 21, 1985 EXTENSIONS OF REMARKS 3069 How you Swiss connection will protect you tion of the expenses of such travel other­ what should be a simple question. Unfortu­ if the government again bans gold owner­ wise allowable which, under regulations, is nately, as you can see, the issue does depend ship. not allocable to such trade or business or to on the facts and circumstances of each case. Ways to send money abroad AND bring it such activity. The rules for allocating such Any change in the law to tighten the re­ home-confidentially. . . . expenses set forth in the applicable regula­ quirements for deducting the costs of at­ This is just a hint of the facts you'll get at tions are described on pages 4 and 5 of the tending a foreign convention would require the coming seminars. With ten experts to enclosed Publication 463. legislative action by Congress. guide you, they're just about certain to ex­ Section 274 provides that substantia­ plain every option in the great Swiss finan­ tion of travel expenses is required. The rules With kind regards, cial supermarket. for substantiation are on pages 14-16 Publi­ Sincerely, But if they happen to overlook something, cation 463. TOM E. PERSKY, or if you need more information about a Section 274 provides, in pertinent part, ASSISTANT TO THE COMMISSIONER, particular choice, you have the fail-safe so­ for the disallowance of travel expenses in­ (Legislative LiaisonJ.e lution. You can ASK them! That's what curred to attend a convention, seminar, or they're there for. That's what you're paying similar meeting outside the North American for. area unless the taxpayer establishes that LITHUANIAN INDEPENDENCE Mr. Speaker, following is an IRS the meeting is directly related to an activity DAY analysis of the possible tax treatment described in section 212 and that, after of these types of seminars. My bill will taking into account certain specified factors, it is as reasonable for the meeting to be held HON. BRUCE A. MORRISON reduce this 2112 page answer to one sen­ outside the North American area as within tence, making it one of the best simpli­ the North American area. Section OF CONNECTICUT fication bills of the year. 274<3> defines the term "North Amer­ IN THE HOUSE OF REPRESENTATIVES COMMISSIONER OF INTERNAL REVENUE, ican area" as the United States, its posses­ Tuesday, February 19, 1985 Washington, DC, October 22, 1984. sions, and the Trust Territory of the Pacific Hon. FORTNEY H. (PETE) Stark, Islands, and Canada and Mexico. The rules e Mr. MORRISON of Connecticut. House of Representatives, of section 274 are explained in more Mr. Speaker, I am proud to join my Washington, DC. detail in Publication 463 beginning on page DEAR MR. STARK: This is in reply to your 5. colleagues in commemorating Tues­ August 30 letter in which you expressed In Revenue Ruling 84-113 of the Code provides that, mary purpose in taking the trip. in the case of any individual who travels I understand your motivation for bringing pendence Day.e outside the United States away from home this practice to the Service's attention, and in pursuit of a trade or business or in pur­ I very much appreciate your taking the time suit of an activity described in section 212, to do so. I also recognize that the foregoing no deduction shall be allowed for that por- reads like an extremely technical answer to 3070 EXTENSIONS OF REMARKS February 21, 1985 THE INDOMITABLE SPIRIT OF to release the Baltic people being held <2> until the Baltic States become inde­ THE LITHUANIAN AND BALTIC as political prisoners. pendent, the Secretary of State should, PEOPLE The Lithuanian and Baltic people's through such channels as the United States pursuit of freedom despite the Soviet Information Agency and other information agencies of the United States Government, HON. C.W. BILL YOUNG Union's blatant disregard for their do his utmost to bring the matter of the OF FLORIDA human rights, is a source of inspira­ Baltic States to the attention of all nations IN THE HOUSE OF REPRESENTATIVES tion to people throughout the world. by means of special radio programs and pub­ We must do all we can to support their lications; Thursday, February 21, 1985 struggle for freedom because as Amer­ <3> the United States should not agree to • Mr. YOUNG of Florida. Mr. Speak­ icans, we cannot accept the unwanted the recognition, by any international con­ er, this week we commemorate the domination of one nation over another ference, of the Soviet Union's unlawful an­ 67th anniversary of Lithuanian Inde­ anywhere in the world. nexation of Lithuania, Latvia, and Estonia, pendence Day, a time of great joy and H. CON. RES. 65 and it should remain the policy of the United States not to recognize in any way great sorrow for the Lithuanian and Whereas the United States, since its in­ the annexation of the Baltic States by the Baltic people. While it is a day of tre­ ception has been committed to the principle Soviet Union; of self-determination; mendous pride for Lithuanians <4> the President should require that all throughout the world, it is sad to note Whereas this essential moral principle is also affirmed in the Charter of the United government map publishers, and should re­ that the Soviet Union has denied free­ Nations; quest that all private map publishers, show, dom and independence to these people Whereas the Union of Soviet Socialist Re­ on all maps of Europe, the Republics of for the past 45 years. publics is, according to its Constitution, a Lithuania, Latvia, and Estonia as independ­ Since overrunning Lithuania and its voluntary federation of autonomous repub­ ent states, with a footnote explaining that Baltic neighbors Estonia and Latvia in lics; the military occupation and forced incorpo­ 1940, the Soviets have undertaken a Whereas the three Baltic Republics the right of self-determination should guage, religion, and cultural heritage Soviet Socialist Republics voluntarily, but be returned to the peoples of Lithuania, of the Baltic people. On this, one of rather were occupied military by Russian Latvia, and Estonia through free elections the brightest days of Lithuanian histo­ Armed Forces in the early days of World conducted under the auspices of the United ry, we pay tribute to the indomitable War II and subsequently incorporated by Nations after Soviet withdrawal from the spirit of the Lithuanian and Baltic force into the Union of Soviet Socialist Re­ Baltic States; and people who share the common dream publics and have since been governed by <6> the right of self-determination should that one day soon they may know the governments approved by, and subservient be made a prime political objective of the freedom and liberties that have been to, the Government of the Union of Soviet United Nations and should be accorded denied them for more than four dec­ Socialist Republics; through free elections under the auspices of Whereas the ethnic makeup of the Baltic the United Nations to all peoples now invol­ ades. peoples is distinctly foreign in language, the lifelong work of my friend and culture, common traditions, and religion constituent Dr. Casimir Kazys Bobelis, from that of the Russian people; H. CON. RES. 66 of St. Petersburg, FL. Dr. Bobelis emi­ Whereas, by deportation and dispersion of Whereas the United States does not recog­ grated to the United States from Lith­ the native populations of the Baltic States nize the illegal annexation by the Soviet to Siberia and by a massive colonization Union of the Baltic nations of Estonia, uania in 1948. Since that time, he has effort in which Russian colonists replace Latvia, and Lithuania; not been able to return to his home­ the displaced native peoples, the Soviet Whereas the United States as a member land. He has, though, worked fiercely Union threatens complete elimination of of the United Nations has pledged to uphold in support of the Lithuanian people the Baltic peoples as a culturally, georgra­ the ideals of the United Nations Charter and their battle against the Soviets to phically, and politically distinct and ethni­ and "to take joint and separate action" to regain their religious and personal cally homogeneous population; promote "universal respect for, and observ­ freedom. Whereas, despite such treatment, the ance of, human rights and fundamental Dr. Bobelis has served since 1979 as spirit of the citizens of the Baltic States is freedoms for all without distinction as to president of the Supreme Committee not broken and the desire of the citizens of race, sex, language, or religion"; the Baltic States for national independent Whereas during the 83rd Congress, the for the Liberation of Lithuania and remains unabated; has provided moral and financial as­ Select Committee to Investigate Communist Whereas the United States has consistent­ Aggression of the House of Representatives sistance to Lithuanian underground ly refused to recognize the unlawful Soviet thoroughly investigated the seizure of the Catholic churches and newspapers. occupation of the Baltic States and has con­ Baltic nations by the Soviet Union and, in Pope John Paul II recognized Dr. tinued to maintain diplomatic relations with its Third Interim Report, concluded that Bobelis' work on behalf of the Lithua­ representatives of the independent Republic the "evidence is overwhelming and conclu­ nian people by awarding him the com­ of Lithuania, Latvia, and Estonia; and sive that Estonia, Latvia, and Lithuania mander in the Knighthood of St. Whereas the United Nations and the were forcibly occupied and illegally annexed United States delegation to the United Na­ by the Union of Soviet Socialist Republics"; Gregory medal, the highest honor tions have consistently upheld the right of awarded by the Pope to lay persons of self-determination of the people of those Whereas the United States, as a signatory the Catholic church. The Pope made countries in Asia and Africa that are, or to the Final Act of the Conference on Secu­ this highly coveted presentation to Dr. have been, under foreign imperialist rule: rity and Cooperation in Europe, endorsed Now, therefore, be it Principle VIII, concerning equal rights and Bobelis in absentia during a ceremony self-determination of peoples, which states last month in Lithuania paying tribute Resolved by the House of Representatives fthe Senate concurring), That it is the sense "all peoples always have the right, in full to the 500th anniversary of St. Casi­ of the Congress that-- freedom, to determine, when and as they mir, the patron saint of Lithuania. Cl> the President and the Secretary of wish, their internal and external political It is in recognition of Dr. Bobelis' State should take all necessary steps to status, without external interference, and to work, which symbolizes the never­ bring the Baltic States question before the pursue as they wish their political, econom­ ending battle for freedom waged by United Nations and to urge that the United ic, social and cultural development" and the the Lithuanian people, that I am re­ Nations request the Soviet Union- "participating States . . . also recall the im­ introducing today two resolutions ex­ to withdraw all Russian and other portance of the elimination of any form of nonnative troops, agents, colonists, and con­ violation of this principle"; and pressing the support of Congress for trols from the Republics of Lithuania, Whereas the House of Representatives in the return of full freedom and inde­ Latvia, and Estonia, and the 96th Congress, by adopting H. Con. Res. pendence to Lithuania and the Baltic to return all Baltic exiles from Siberia 200, reaffirmed the United States policy States. My resolutions, which follow and from Prisons and labor camps in the concerning the Baltic nations and thereby my remarks, also call for the Soviets Soviet Union; urged positive actions: Now, therefore, be it February 21, 1985 EXTENSIONS OF REMARKS 3071 Resolved by the House of Representatives ANNIVERSARY OF LITHUANIAN designating August 4, 1985, as Press fthe Senate concurring), That it is the sense INDEPENDENCE Freedom Day in the United States. of the Congress that the President should­ August 4, 1985, marks the 250th an­ (!) enter into discussions with the Soviet Union- HON. DENNIS M. HERTEL niversary of the landmark decision in for the withdrawal of all non-Esto­ OF MICHIGAN the case of John Peter Zenger of colo­ nian, non-Latvian, and non-Lithuanian mili­ IN THE HOUSE OF REPRESENTATIVES nial New York. The publisher of a tary, political, administrative, and police weekly journal, Zenger was charged personnel from Estonia, Latvia, and Lithua­ Tuesday, February 19, 1985 with libel by the Governor of New nia, respectively, and e Mr. HERTEL of Michigan. Mr. York for articles exposing corruption CB) for the release of political prisoners of Speaker, 67 years ago, on February 16, in the colonial government. In a stir­ Estonian, Latvian, or Lithuanian nationality 1918, the people of Lithuania rejoiced ring courtroom defense of Zenger, at­ from prisons, labor camps, psychiatric insti­ in the democratization and independ­ torney Andrew Hamilton argued for tutions, and other detention centers within the Soviet Union and their return to Esto­ ence of Lithuania. For a regrettably the right of any newspaper to print nia, Latvia, and Lithuania, respectively; short period, Lithuanians enjoyed a the truth for the common good of the (2) instruct the United States delegation more liberal society-one in which cen­ people. The decision exonerating to each review meeting of the Conference sorship, religious persecution, and po­ Zenger served as a watershed event in on Security and Cooperation in Europe to litical oppression were replaced by the establishing the principle of freedom seek consideration of the following matters: freedoms of speech, religious affili­ of the press in this land. the illegal annexation of Estonia, ation, and assembly. Czarist absolut­ The commitment to public media Latvia, and Lithuania by the Soviet Union, ism and agrarian practices gave way to working free of government censor­ and human dignity and modernization as the denial of self-determination and ship was clearly evident in the draft­ territorial integrity of Estonia, Latvia, and political, social, and economic reforms ing of our Nation's Bill of Rights. The Lithuania by the Soviet Union; and were instituted. For the first time in influence of Thomas Jefferson, (3) make every effort to gain the support centuries, Lithuanian culture was free George Mason, and James Madison en­ and cooperation of all nations to achieve to flourish. couraged members of the Constitu­ the objectives of the discussions under para­ This democratic renaissance was cut tional Convention to view press free­ graph <1) and the consideration of the mat­ short by the illegal Soviet invasion dom as "one of the great bulwarks of ters under paragraph <2>.e and occupation in 1940 of Lithuania liberty." By embodying freedom of the and her sister countries, Latvia and press in the first amendment to the LITHUANIAN INDEPENDENCE Estonia. To this day, opposition to the Constitution, our Nation demonstrat­ DAY forced annexation results in imprison­ ed unprecedented trust in the ability ment, deportations, and executions. of a well-informed public to be full HON.BERNARDJ.DWYER Yet, those who seek to make their participants in their own Government. homeland more humane, democratic, Our Nation's support for freedom of OF NEW JERSEY and autonomous have not given up the press represents faith in the IN THE HOUSE OF REPRESENTATIVES hope. Such torture and denial of people. Through more than 200 years Tuesday, February 19, 1985 human rights has kindled, rather than of journalistic history, our Nation's abated the desire of Lithuanians for courts have defended the public's •Mr. DWYER of New Jersey. Mr. self-determination. Speaker, I wish to join my fellow col­ "right to know," and the impropriety The United States has never recog­ of Government censorship in which leagues in commemorating the 67th nized the Soviet incorporation of the Anniversary of Lithuanian Independ­ national security issues were not at Baltic States. Today, and until Lithua­ stake. In the landmark case of New ence Day. nia is freed from the Soviet grip, we As the Lithuanian people commemo­ York Times Co. versus United States, must again denounce this breach of Supreme Court Justice Hugo Black rate the anniversary of their declara­ international accords, as well as Soviet tion of independence, they continue to stressed the inviolability of the first violations of human rights. For those amendment guarantees: face serious threats to their religious, who are imprisoned behind the Soviet cultural, and educational freedoms. I "The Founding Fathers gave the free wall of domination and oppression, let press the protection it must have to fulfill know I am not alone when I say that us in the free world reaffirm our soli­ totalitarianism has deprived these its essential role in our democracy. The darity with their fight for national press was to serve the governed, not the gov­ people of the most important posses­ sovereignty. For those whose an­ sions they have-their personal and ernors." guished cries have been muffled by And so it has. And through such political freedoms. It is indeed regret­ censorship and persecution, let us table that Lithuanians must live under service our Nation is arguably the best voice our convictions for the rights to informed society in history. these oppressed conditions. liberty and justice. We are all bound I call upon my colleagues in Con­ There have been times when the by the Soviet chains of oppression commitment to freedom of the press gress today, to make this important when any of us continues to suffer at commitment on behalf of Lithuania a was not easy to maintain. There have the hands of the Soviets. Only when been attempts to control the media, year-round effort. We must remember we have alleviated all suffering will that those who suffer without the limit its inquisitive nature, or discour­ humanitarian and democratic ideals age its publication efforts. But despite freedoms we so easily take for granted become reality for all humanity.e look to us for guidance in the interna­ the episodic setbacks, press freedom tional human rights struggle. remains as vital today as when the Our foreign policy must always re­ FREEDOM OF THE PRESS DAY first amendment was ratified in 1791. flect this commitment. As representa­ That vitality serves as an inspiration tives in the free world, it is imperative HON. TOM LANTOS for millions of men and women we commit ourselves to the release of throughout the world whose under­ OF CALIFORNIA standing of events is limited by the the oppressed from the imposition of IN THE HOUSE OF REPRESENTATIVES Soviet rule where all fundamental State controlled media in their home­ freedoms have been repressed. Thursday, February 21, 1985 lands. I wish to thank my able colleague, e Mr. LANTOS. Mr. Speaker, with my As a fundamental liberty designed to FRANK ANNUNZIO, Congressman from distinguished colleague from Michi­ ensure participation by an informed Illinois and the Lithuanian American gan, [Mr. VANDER JAGT] and with 77 people in their government, it is im­ Council for calling my attention to other Members of this House, I intro­ portant for this Nation not only to ex­ this important special order.e duced today a House joint resolution, press its appreciation of press free- 3072 EXTENSIONS OF REMARKS February 21, 1985 dom, but to rededicate itself to the continue to inform the Congress and petitors, uses a simpler standard, and highest principles of an unfettered the American public as to the true exports cleaner grain than the United flow of information. conditions inside Lithuania. States. That is one main reason why By establishing a Press Freedom Again, Mr. Speaker, I commend my Canada has captured some of our Day, we can reiterate our commitment colleagues for their participation in former grain markets. to one of the principle liberties that this special order, recognizing and GAO STUDY SOUGHT has guided this Nation on an epic jour­ commemorating Lithuanian Independ­ This is a complex issue, just now re­ ney from the printshop of John Peter ence Day.e ceiving increasing attention. To add to Zenger to the era of satellite commu­ our understanding of how U.S. dock­ nications. "Press freedom is not U.S. GRAIN STANDARDS NEED age allowance and grain standards in safety," wrote journalist Zechariah TIGHTENING TO COMPETE general may be affecting our ability to Chafee, Jr. in 1948, "but an opportuni­ WITH FOREIGN PRODUCERS market our grain overseas, I have ty." asked the General Accounting Office I encourage my colleagues in House HON. BYRON L. DORGAN to undertake a two-pronged study. to join me and my distinguished col­ GAO will first determine how wide­ leagues in supporting this important OF NORTH DAKOTA spread is the practice of adding or resolution to remind our Nation of the IN THE HOUSE OF REPRESENTATIVES readding dust or other foreign materi­ great opportunity provided Americans Thursday, February 21, 1985 al at the export elevator. Over the through freedom of the press. May e Mr. DORGAN of North Dakota. Mr. longer range, the study will address our commemoration of this event lead Speaker, recent newspaper headlines­ the larger question of to what extent us as a nation to rededicate ourselves U.S. grain standards are making the to the preservation of this great prin­ " Asians Express Concern Over U.S. Wheat Quality," and, "U.S. Grain United States less competitive in inter­ ciple.e Quality Slipping," for example-point national markets. to what I believe is a serious weakness The issue is of particular importance LITHUANIAN INDEPENDENCE in our grain marketing system. That is now, when we need to do everything in DAY why I'm introducing legislation today our power to increase sales for our dis­ which addresses this problem. tressed family farmers. Foreign sales HON. ROBERT J. LAGOMARSINO One of the complaints which foreign are critical to the health of agriculture buyers of U.S. grain voice is excessive­ since over half of the wheat, rice, soy­ OF CALIFORNIA ly high dockage, or dust. U.S. grain beans, and sunflower seeds raised in IN THE HOUSE OF REPRESENTATIVES standards currently allow export ele­ this country are sold overseas. Al­ Tuesday, February 19, 1985 vators to add, or readd after cleaning, though agriculture is our biggest e Mr. LAGOMARSINO. Mr. Speaker, a certain percentage of nonmillable earner of export dollars, their value is today we applaud and commemorate material such as dust. As our foreign expected to decline to $36.5 billion in Lithuanian Independence Day. Sixty­ buyers have become more sophisticat­ fiscal 1985, down from $43.75 billion in seven years ago, Lithuanians con­ ed and their needs more specialized, 1981. cerned with human rights in their be­ this practice poses an increasing I believe that strict grain export loved, yet occupied and enslaved, threat to U.S. grain exports. rules can help reverse that slide.e nation declared their independence. A THREAT TO FARM MARKETS Americans can and must speak out Just how this practice threatens our LULAC HONORS VOLUNTEERS and sound their support for the free­ overseas markets was made clear last dom and independence of the Lithua­ month at the annual National Associa­ nian people. Despite subjugation by tion of Wheatgrowers convention, at HON. BRUCE A. MORRISON their Soviet mentors, the Lithuanian which several foreign buyers of U.S. OF CONNECTICUT people continue to struggle to be free wheat criticized its quality. For exam­ IN THE HOUSE OF REPRESENTATIVES and independent. Their worthy goal of ple, a representative of South Korean Thursday, February 21, 1985 self-determination has its roots in the flour mills, which currently import American struggle for independence, nearly all their wheat from the United e Mr. MORRISON of Connecticut. and freedom from tyranny. States, warned that the South Korean Mr. Speaker, this Saturday marks the The Helsinki accords were signed by market should not be taken for grant­ Fifth Recognition Luncheon of the the United States and the Soviet ed. Flour Inillers there have been dis­ New Haven, CT, Council of the League Union in an effort to increase political tressed by quality problems, including of United Latin American Citizens freedoms of those living on both sides a high dockage content, he said. [LULACJ. The ceremony will honor of the Iron Curtain. Yet, the Soviets Representatives of Japanese and In­ over 20 Connecticut residents who have brutally exploited and violated donesian flour mills made similar have been supportive of the goals of that set of agreements, crushing all charges. Besides the wheatgrowers the organization, primarily improving voices of opposition and attempting to convention, complaints have been Hispanics' access to higher education. extinguish any hopes for freedom and heard through other channels as well. The league was founded in 1929, and independence. Current U.S. grain standards do not today is the largest Hispanic volunteer The heroic Lithuanian people have address this problem. Our standards organization in the United States, not caved in under this pressure, how­ now allow exporters to add dust up to with over 700 councils in 45 States and ever, Mr. Speaker. They continue to a certain percentage right at the more than 125,000 members. speak out, in the face of brutal Soviet export elevator. The LULAC Council No. 700 was es­ oppression, for reforms to redress the My bill simply prohibits the addition tablished in New Haven, CT, in 1976 serious human rights conditions of dust or other foreign material at and is the only LULAC council in the within their native land. All Ameri­ the export elevator. State. The council initially focused on cans, and freedom-loving people every­ One of the reasons the dockage awarding scholarships to Hispanic stu­ where, raise their voices in unison in problem is so serious is that in an in­ dents pursuing post secondary educa­ support of the Lithuanian people in creasingly tight foreign market, our tion, but since 1980 has expanded its their struggle to be free from foreign competitors have stricter and simpler activities to include the sponsorship of domination. Their struggle is our grain standards than we do. For exam­ community activities and workshops, a struggle. ple, no other country even uses the nonpartisan voter registration drive Thanks should be given also to the term dockage in describing grain qual­ and cosponsorship of a 1981 tristate Lithuanian American Council, who ity. Canada, one of our biggest com- forum on the use of force by police. February 21, 1985 EXTENSIONS OF REMARKS 3073 The council's primary concern, how­ direct financial investment from abroad as LITHUANIAN INDEPENDENCE ever, has been and continues to be one way to offset the loss of industries to education. To carry out this goal, the suburbs. Still, far too many cities continue HON.HENRYJ.NOWAK council conducts an annual local schol­ to face difficult economic challenges result­ arship campaign where funds raised ing from the flight of largely white middle­ OF NEW YORK class and professional families to the sub­ IN THE HOUSE OF REPRESENTATIVES locally are matched dollar for dollar urbs. Left behind are great concentrations by the LULAC National Scholarship of the poor and minorities, and a dwindling Tuesday, February 19, 1985 Fund. In 1984 the LULAC Council No. tax base. •Mr. NOWAK. Mr. Speaker, there is 700 awarded $4,200 to 12 area Hispanic Increasingly, industries also exit to subur­ students enrolled in institutions of ban areas. Sharp, cutbacks in federal funds a special kind of nostalgia for one's higher education. to cities and states the past four years have homeland that can only be understood I know my colleagues join me in added to the fiscal woes of some communi­ by those who have had to leave the honoring this worthy organization. ties. place of their birth for reasons of prin­ Council No. 700 and the hundreds of It is hardly surprising, therefore, that city ciple. On February 16, Lithuanian­ other councils of the League of United officials meeting in Washington recently for Americans commemorated the 67th the midwinter conference of the United anniversary of Lithuanian Independ­ Latin American Citizens can be proud States Conference of Mayors were lament­ of their record of giving talented ence Day. !twas an independence that ing another anticipated round of cutbacks lasted a short 22 years, from 1918 to young people in hispanic communities in federal aid to states and cities. The across the country the opportunity to mayors argue that further reduction in fed­ 1940, when Lithuania was absorbed go to college.e eral financial assistance to states and local into the Union of Soviet Socialist Re­ communities, as part of a federal budget publics. freeze for fiscal year 1986, could squeeze the Lithuanians all over the world cele­ SPENDING PRIORITIES cities severely. brate this anniversary, except those in Moreover, many city officials wonder the Soviet sphere where such an ob­ HON. TONY COELHO whether the Reagan adininistration is basi­ servance is not allowed, and for a spe­ cally hostile to cities; they note, for exam­ OF CALIFORNIA cial reason. It cannot be allowed for it ple, administration proposals to curb the IN THE HOUSE OF REPRESENTATIVES tax-exempt status of municipal revenue keeps alive a hope, a hope that one Thursday, February 21, 1985 bonds, to end local revenue sharing, and to day all those living under a repressive restrict federal tax deductions for state and and oppressive regime will have their e Mr. COELHO. Mr. Speaker, as the local income taxes. rights as individuals assured and their House begins its deliberations on the The states generally are now posting free and independent homeland re­ President's fiscal year 1986 budget record budget surpluses. In a number of stored. proposal, we are confronted with states, such as New York, California, Minne­ Historically, America has symbolized many challenges, and the need to rees­ sota, Michigan, Wisconsin, Ohio, and Massa­ that very hope. There!ore, we join the tablish our spending priorities for the chusetts, governors are proposing or consid­ Lithuanians who mark the day of in­ Federal Government. Many of the ering cuts in state income tax rates because of momentary state fiscal surpluses. Similar dependence by celebrating the ideals it suggested cuts and program elimina­ represents and extend our support to tions advanced by the administration surpluses are being posted in many cities, where the economy's improvement over the those who must suffer in silence so would have serious ramifications for past year has stepped up tax receipts. that they may have hope for the state and local governments through­ Caution is in order when reviewing the future and keep alive the inspiration out the country, and I know I am not moment's black ink in state and local ledg­ to nurture the values of democracy alone in voicing my concerns over the ers. Congress and the White House are con­ and human rights for the time when proposed cuts in housing, transporta­ templating reductions in federal aid for city­ they will regain these goals.• tion, and urban development. related programs. Most states and cities I would like to share with my col­ have balanced-budget requirements. Unlike leagues a recent editorial from the the federal government, these units are not INTRODUCTION OF H.R. 1188, Christian Science Monitor, which sup­ allowed to operate in red ink. THE HIGH TECHNOLOGY RE­ ports the belief of many of our citizens Moreover, many of the surpluses being re­ SEARCH AND SCIENTIFIC EDU­ corded by local Jurisdictions may prove that the economic well-being of our short lived: Constituents are calling for the CATION ACT OF 1985 Nation's cities is a cornerstone for a restoration or expansion of service eliminat­ strong future. We must indeed reduce ed or cut during the severe economic down­ HON. ROBERT T. MATSUI the Federal deficit, but expecting our turn of 1981-82. Local roadways, transporta­ Nation's cities and counties to bear the tion facilities, and other vital services are in OF CALIFORNIA brunt of our efforts is unrealistic. need of modernization. Anyone who has IN THE HOUSE OF REPRESENTATIVES URBAN EMPHASIS taken New York's subway system during the Thursday, February 21, 1985 past year can immediately recognize the It has always been one of the great anom­ •Mr. MATSUI. Mr. Speaker, original­ alies about the United States that a society pent-up demand for spending of services. that spends so much of its financial re­ Granted, many cities should be able to call ly adopted in the Economic Recovery sources on housing-from soaring rents and for additional financial help from states Tax Act of 1981, the research and de­ sky-high mortgages to expensive outlays for during the next year or so, thanks to the velopment tax credit provisions of the furnishings, lawns, and other home-related improved state income flow on top of a Internal Revenue Code section 30 pro­ projects-does not have a national policy lower state spending base. vide for a credit against the Federal aimed at preserving and bettering its cities. But that should not be taken by Washing­ income tax of 25 percent of a taxpay­ Yet, a substantial portion of the nation's ton as an excuse to gut aid programs direct­ er's expenditures on specified catego­ housing stock is located in or near most of ed at cities and local communities. Through­ ries of research and development in the nation's largest cities. Moreover, wheth­ out history, a hallmark of great nations has er dwellings are located within cities or not, been public support directed at preserving excess of the average of the amount the cities provide the trellis-the backdrop cities. Most of the great cities of Europe spent on R&D in the preceding 3 of commerce, jobs, offices, and cultural at­ today, with landmarks that in some cases years. It should be noted that the ben­ tractions-that links together the hundreds date back centuries, reflect such a far-seeing efit applies only to enterprises when of thousands of neighborhoods and commu­ national emphasis. and to the extent that their R&D nities that make up the US. Washington should remember the wisdom spending increases over immediately Precisely for these reasons, the nation's of urban investment as it goes about the previous levels. political and econoinic leadership-as well sensitive task of cutting the federal budget as the public in general-needs to think cre­ to reduce deficits. Housing neglect is but The Senate version of the Deficit atively about its cities. one indicator of trends that should be re­ Reduction Act of 1984 extended and To a degree, innovative thinking has versed. America's cities warrant preserva­ strengthened the R&D credit. Unfor­ begun. Many cities, for example, now seek tion and modernization.e tunately, the provision was not adopt- 3074 EXTENSIONS OF REMARKS February 21, 1985 ed by the conference committee, how­ during the 1970's than in the economy larly if the period of noncompetitive­ ever, because the Ways and Means as a whole, and which accounted for ness stretches on for more than a few Committee had not held hearings on 44 percent of total U.S. manufacturing years." the issue and action could be post­ exports by 1980. The United States must keep its po­ poned until 1985, since expiration of In addition, the output of the high sition at cutting edge of industrial in­ the existing provisions would not technology sector furnishes other, novation. To do that, in the face of occur until the end of that year. The more traditional industries with the the formidable challenges from our Senate bill would have made four means to sustain or regain their own competitors in Western Europe and es­ changes in the existing credit, all of international competitiveness. pecially the Far East, some measure of which would have made for a more The ultimate effects of R&D are im­ Federal support is necessary, in view cost-effective approach. possible to measure. But, as William J. of the aggressive governmental pro­ The first change would have made Baroody, Jr., president of the Ameri­ grams of other nations and in light of the credit permanent. This step is nec­ can Enterprise Institute, observed in the demonstrated gap between private essary to make the credit a genuinely introducing a recent AEI symposium, sector R&D and socially optimal stable incentive for corporate decision­ "Many economists believe that a clear levels. A tax incentive approach is makers considering R&D proposals. As causal relationship links basic re­ clearly preferable to a large affirma­ the National Science Foundation has search, industrial innovation, produc­ tive grant program. observed: "R&D is exceptionally risky tivity improvement, and economic What is needed now is to build on for any individual company. Much growth. They point to that slowdown the initial experience of the past 3 R&D pays off only after 5, 10 years or in spending on research and develop­ years, to make the R&D credit more more when current management may ment • • • as a cause of the productivi­ targeted and more productive. In 1984, be long departed." ty slump of the 1970's • • •. Another the Senate made appropriate changes The second change would have slowdown in the performance of re­ in the current R&D credit provisions­ tightened and targeted the definition search and development could have se­ by limiting its application to function­ of research and development expendi­ rious implications for economic al and technologically oriented re­ tures qualified to generate a tax growth and employment through the search and development, by creating a credit. As reflected in the Senate Fi­ end of this century." comparatively more generous credit nance Committee report, this was in­ According to a report prepared for for corporate basic research contract­ tended to treat only "research and ex­ the Cabinet Council on Commerce and ed out to universities, by making the perimental activities designed to Trade, the United States has lost credit available to start-up companies produce a technologically new or im­ world export market share in 8 out of without an existing trade or business, proved business component where the the 10 high technology industries over and, most important, by making the new or improved characteristics are the past 15 years. In the semiconduc­ credit permanent. functional rather than stylistic or cos­ tor industry, Japan has rapidly in­ metic." creased its share not only of world SUMMARY A third change was a modification to markets-from 33 percent to 38 per­ The R&D credit is made permanent. permit startup companies to gain the cent in the last year-but of the U.S. The definition of qualified research credit from R&D directed at a trade or market in particular-from 23 percent for R&D credit purposes is tightened business they intend to carry on in the to 30 percent in the last year. to eliminate taxpayer abuses of the future. The drive of foreign nationals to R&D credit and to ensure that the The fourth change related to R&D overtake the United States is managed credit is targeted to fulfill its original grants to universities and this was everywhere by systematic programs of purpose of encouraging technological modified to provide for a larger incen­ incentives, subsidies, trade barriers, innovation. tive for corporations to fund basic re­ and other forms of governmental sup­ The R&D credit is made available to search in university laboratories as op­ port. Japan, for example, currently start-up corporations, to research joint posed to conducting it on their own. has in place an R&D credit similar to ventures composed of corporations, The importance of maintaining U.S. the United States-for which strength­ and to other qualifying joint ventures industry's technological leadership is ening revisions are being considered­ of partners with existing businesses to undisputed. As Congress' Office of as well as large deductions and reserve which the research relates. Technology Assessment recently ob­ allowances specifically for high tech­ The bill creates a new credit equal to served: "Staying highly competitive in nology developers and exporters. 20 percent of that portion of a corpo­ electronics and other technologically Taiwan, West Germany, France, the ration's payments to universities and driven industries, with U.S. firms re­ United Kingdom, and Canada all simi­ other qualified nonprofit, tax-exempt maining leaders in innovation, in inter­ larly provide R&D credits and various organizations for basic research which national trade, and in sales and profits additional incentives. exceeds a fixed, historical mainte­ is necessary if the United States is to The seriousness of this challenge nance-of-effort floor. This mainte­ maintain its standard of living, its cannot be ignored. As Data Resources, nance-of-effort floor is equal to 1 per­ military security, and if the U.S. econ­ Inc. observed in a major 1984 report cent of the corporation's average omy is to provide well-paying and sat­ on U.S. Manufacturing Industries di­ annual R&D budget-including uni­ isfying jobs for the Nation's labor rected by the late Otto Eckstein, "In versity basic research payments-over force." high technology fields where one firm 1981-83. A second threshold require­ R&D is the key to keeping our tech­ or one nation typically dominates ment also is used to prevent corpora­ nological lead and staying competitive. world markets, it is very difficult to re­ tions from merely diverting their gen­ The Congressional Budget Office re­ capture market position if it is ever eralized charitable university giving to ported in its April 1984 study, Federal lost. Indeed, it is hard to find an exam­ creditable support of university basic support for R&D and innovation, that ple of a lead that was regained • • •. research. "A strong R&D effort is characteristic Once the lead is lost, profitability di­ The bill expands the present en­ of American industries that are effec­ minishes, resources shrink, and man­ hanced deduction to corporate contrib­ tive international competitors, while agement is pressed into shortsighted, utors of scientific and technical equip­ industries with severe competitive defensive, cost-cutting moves that ment and apparatus given to colleges, problems invest significantly less in soon produce a further loss of market universities, junior colleges, and post­ R&D." share. A nation that casually surren­ secondary vocational schoods for use Promoting R&D encourages the ders leading industrial positions in research or research training by high technology sector, in which em­ through policies of neglect will find it means of the following: Eligible uses ployment grew 50 percent faster difficult to stage a comeback, particu- of the property are expanded to in- February 21, 1985 EXTENSIONS OF REMARKS 3075 elude direct education in the sciences in Leningrad. We, in Congress, must reports such as the letter from the 38 Soviet as well as research and research train­ continue to speak out for all Soviet Jews have reported, the harassment of ing; donations of computer software Jews, such as Yakov Galperin and his Jewish activists has become more brutal, are made eligible for the deduction; family, and raise our voices against all and frequently coincides with attacks on Jews in general. Last September, for in­ and donations of state-of-the-art forms that anti-Semitism takes. stance, a Hebrew teacher from Moscow equipment used in the taxpayer's The article follows: named Yuli Edelstein was set up by the trade or business are made eligible for THE JEWS LEFT BEHIND police, accused of possession of narcotics, the deduction. "We call on you, who spend your efforts and sentenced to a three-year prison term. The bill also clarifies that scholar­ on the paperwork of endless conferences, One of the police agents involved in the case ships, grants, and student loan forgive­ runs, and picnics in defense of Soviet was quoted as saying, "It is a well-known ness received by graduate students will Jewry," says a recent letter signed by 38 fact that Jews use narcotics in their reli­ be excluded from such student's gross Soviet Jews and addressed to the Jews of gious rituals." Another Hebrew teacher had the West, "you who are still full of illusions a gun planted in his apartment; another income, even though he or she is re­ and see solidarity in philanthropy expressed still was attacked by a stranger on a street quired to perform future teaching in gifts of blue jeans, to show your solidari­ corner and then arrested for provoking a services for any of a broad class of in­ ty by your deeds. . . . The time has come to fight. stitutions of higher education as a sound the alarm." The tone is desperate, Since August, more than ten Hebrew condition of receiving such scholar­ and a touch ungrateful. But the letter ex­ teachers and Jewish cultural activists have ship, grant, or loan forgiveness.• presses the two most important facts about been arrested, but the significance of the Soviet Jews today. First, their situation is crackdown goes beyond the numbers. Be­ growing steadily worse. Official anti-Semi­ cause synagogues in the Soviet Union are SOVIET ANTI-SEMITISM GROWS tism has increased to the point where Soviet forbidden to hold classes or to foster cultur­ UGLIER newspapers and television regularly malign al activity, and Hebrew is "officially" taught Jews in terms reminiscent of the worst of only to Russian Orthodox priests and gov­ the Czarist persecutions. Jewish activists in ernment "Jewish experts," the arrests rep­ HON. TOM LANTOS particular face increasingly violent harass­ resent an attack on the very notion of OF CALIFORNIA ment. Opportunities for Jews to advance in Jewish identity. In the past, Jewish reli­ IN THE HOUSE OF REPRESENTATIVES Soviet society have been radically circum­ gious activists had fared comparatively well. scribed, and Jewish emigration no longer For example, while many Christians have Thursday, February 21, 1985 exists. And second, the traditional response been placed in Soviet mental hospitals for •Mr. LANTOS. Mr. Speaker, I rise of the American Jewish community and the practicing their religion, only one Jew that today to protest the growing campaign U.S. government-to press the Soviet gov­ we know of has suffered this uniquely of anti-Semitism in the Soviet Union. ernment on the emigration issue-is no Soviet horror. Jewish groups in the United longer enough. States have proven adept at publicizing the While Jews are finding it increasingly It is understandable that the American worst cases of repression. But it now seems difficult to emigrate, they are facing support groups for Soviet Jewry have made that the shield of publicity no longer works. growing persecution in their jobs, in emigration the single most important issue As Morris B. Abram and Herbert Kronish of school, and in their neighborhoods as on their agenda. The figures are stark. Al­ the National Conference on Soviet Jewry they are being branded by the official though approximately 10 percent of the wrote last month on the Op-Ed page of The Soviet media as traitors. Soviet Union's Jewish population-nearly New York Times, the Soviet government is These problems were highlighted to 260,000 people-left the country between engaged in "a systematic campaign to dis­ me recently when I received informa­ 1968 and 1981, with a high point of 51,320 in rupt all Jewish religious and cultural activi­ 1979, only 896 managed to get out last year. ties." The campaign threatens "the very tion about a family I adopted last There are over 380,000 others who have in­ survival of Judaism in the Soviet Union." year, Yakov and Olga Galperin of Len­ dicated their desire to leave by initiating the The Soviet government now openly disre­ ingrad. They have applied several complicated process of applying for a visa. gards the formal distinction it once insisted times to emigrate to Israel, and each Moreover, as soon as a Jew in the Soviet upon between "anti-Semitism" and "anti-Zi­ time were refused. After these unsuc­ Union attempts to speak out on behalf of onism." The result is anti-Jewish propagan­ cessful attempts, their cousin, who other Jews, he becomes a pariah, losing his da as poisonous as that put out by Libya or lives in my district, completed the ex­ job and inviting police harassment. Emigra­ Iraq, or, for that matter, by Hitler. The offi­ tensive visov forms-the official invita­ tion then becomes his major concern, and, cial youth newspaper Komsomolskaya as Mark Epstein, executive director of the Pravda, for example, declared in March tion required in cases of reunification Washington-based Union of Councils for 1983 that the meaning of Zionism is "to of families. In December 1984, Yakov Soviet Jewry, explains: "We try to take our turn every Jew, no matter where he lives, went to the official emigration office lead and direction from Soviet Jews. . . . into an agent of the Jewish oligarchy, into a in Leningrad with his visov to get the CWle try to act upon the wishes they ex­ traitor to the country where he was born." forms necessary for him to apply for press." The State Department, in turn, fre­ A few weeks later, the Leningrad party daily emigration. The emigration official quently takes its led from groups like Ep­ Leninskaya Pravda described Israel as a denied him these forms, telling him stein's. Thus Soviet Jews become valuable "money-grubbers' paradise" and concluded: that "the issue of reunification of fam­ commodities in Soviet-American relations, "Let us be frank. The appeal to Hebrew ... to be exchanged for trade credits and killer is far from cultural, but is strictly political. ilies is off the agenda." satellites. Right now, for instance, the re­ ... How does Zionism extend its tentacles? I consider it especially provocative at lease of 5,000 Jews-or of Anatoly Schar­ . . . First of all, with the aid of religion, and this time, considering that we are pre­ ansky-would be seen as a major Soviet con­ Hebrew." paring now for a review conference in cession. What accounts for this new anti-Semi­ Ottawa of the human rights provisions Yet in a nation where nobody has the tism? Soviet experts agree that it derives at of the Helsinki Final Act. Reunifica­ right to leave, a bar on emigration does not least in part from the general crackdown on tion of families is a right specifically represent a special affront to the Jews. It is dissent that has followed the death of guaranteed by the signators of the particularly cruel only to those men and Leonid Brezhnev in 1982. But there are also women driven by Zionist sentiment to live in indications that it represents a resurgence Final Act, which includes the Soviet Israel, for whom confinement within the of straightforward ancient Russian xeno­ Union. Refusing prospective emigra­ borders of the USSR represents a special phobia. Professor Stephen Cohen of Prince­ tion applicants the necessary and re­ punishment. But nearly two-thirds of the ton argues that more and more Soviet offi­ quired forms is in direct violation of Jews who left between 1968 and 1981 chose cials "see the state's job being to protect the spirit of the treaty. to come to the United States, just as many Russian values from the West." They de­ I would like to call to the attention other Soviet citizens would if they had the plore "alien" influences, including Jewish of my colleagues an article which ap­ chance. When it comes to emigration, Soviet ones, and exalt Russian traditions, including Jews are only marginally worse off than anti-Semitism. One example of this phe­ peared in Febraury 18, 1985 issue of other Soviet citizens. nomenon can be found, ironically, in Lenin­ the New Republic, "The Jews Left Far more threatening to the majority of grad, the city built by Peter the Great in Behind." I find it particularly impor­ Soviet Jews than the cutoff of emigration is the early 18th century as a window on the tant in that it focuses attention on the the growth of officially sponsored anti-Sem­ West and a symbol of the end of Russian extraordinarily virulent anti-Semitism itism over the past two years. As sporadic isolation. 3076 EXTENSIONS OF REMARKS February 21, 1985 The current leader of the Communist supporting the use of evidence ob­ and honor to mentally retarded people Party in Leningrad, Grigory Romanov, is a tained from the Soviet Union and around the world. Special Olympics is brutish thug and known anti-Semite whose Eastern bloc countries. I would like to feelings about Jews resemble those of his an athletic competition that brings a namesakes Nicholas I and Alexander III. share this correspondence with my New Kind of Joy to millions of special Under Romanov's rule, Leningrad has colleagues. people. This program thrives in 50 served as a focal point for Soviet anti-Semi­ POLISH AMERICAN CONGRESS, INC., countries and enjoys the participation tism, from the infamous 1970 "Leningrad Chicago, IL, January 9, 1985. of 400,000 volunteers and over 1 mil­ trials" of Jews who had sought visas to emi­ DIRECTOR OF OFFICE OF SPECIAL INVESTIGA­ lion athletes worldwide. With 16 grate, to a crude television documentary TIONS, broadcast in November 1984 which hinted Department of Justice, Olympic-type summer and winter broadly at the existence of a worldwide Washington, DC. sports, there is year-round Special Jewish conspiracy and accused specific DEAR SIR: As leaders of the Polish-Ameri­ Olympic competition in each State Jewish dissidents of treason. In June 1981 can community, we strongly support the ef­ and country, and International Winter the Leningrad authorities incited a crowd to forts of the Justice Department's Office of and Summer Games are held every 4 harass a gathering of Jewish activists with Special Investigations to identify, cries of "Jews, beat it out of our country!"­ strip of American citizenship, and deport years. which is of course exactly what many of those alleged Nazi war criminals now resid­ Special Olympics was created in 1968 them would like to do. And in 1983, a Lenin­ ing illegally in the United States. The ef­ by the Joseph P. Kennedy, Jr. Foun­ grad magazine called Neva even claimed, ac­ forts of OSI are in accord with the belief we dation. This valuable program contrib­ cording to British historian Martin Gilbert share, that America exists as a haven for utes to the physical, psychological, in The Jews of Hope, "that stories of perse­ the victims of persecution and not the per­ cution of the Jews under the Tsars were petrators of it. social development and well-being of nothing but 'Zionist propaganda.' " The Polish-American community proudly mentally retarded participants. The There is agonizingly little that Americans claims among its members many survivors experience that these children and can do about Soviet anti-Semitism. If of wartime persecution who bravely defied adults gain in sports helps them to Soviet-U.S. relations improve, the USSR the Nazi occupation of their native land and build confidence and feel positive may be again careful not to upset American so suffered deprivation, internment, and about themselves. Success on the play­ sensibilities. But a Soviet "concession" on physical abuse at the hands of the Nazi the issue is likely to mean that a few thou­ regime and its collaborators in Eastern ing field often carries over into their sand Jews will escape, while two-and-a-half Europe. Our community's special under­ work, their education, and their home million more suffer continued discrimina­ standing of the nature and extent of Nazi­ life. tion and harassment. Russian anti-Semitism directed persecution leads us to appreciate There are Special Olympics pro­ will endure, as it has for centuries. Now, as with special fervor OSI's ongoing attempt to grams in approximately 20,000 com­ the United States begins to talk with the bring to justice those who participated in Soviets again, and as American groups con­ that persecution but who now unlawfully munities-almost every county-in the tinue their long vigil on behalf of Soviet enjoy the blessings of living in the United United States. One of these programs Jewry, this point must be recognized. The States. recently hosted the Western Pennsyl­ right to emigrate is important. But the right As Polish-Americans, we understand all vania Bowling Tournament. On Janu­ to be a Jew is essential. too well the problems of living in Eastern ary 12, 1985, Butler County Special DAVID A. BELL.e Europe today, and the differences between our own great country, the United States, Olympics welcomed over 200 special and the Soviet Union. However, we do not athletes to Butler, PA. With such NO STONE UNTURNED believe that current East-West tensions meets and games held on the local should interfere with OSI's effort to obtain level in communities all over the HON. HAMILTON FISH, JR. evidence of wartime Nazi persecution from world, attendance at events such as archives and witnesses in Eastern Europe, OF NEW YORK the one in Butler County exceeds including the Soviet Union. Like OSI, we be­ IN THE HOUSE OF REPRESENTATIVES lieve that such evidence should be subjected 10,000 annually. Thursday, February 21, 1985 to revi~w for competence and credibility by A primary feature of Special Olym­ American courts under American law. pics is that no one is too old or too e Mr. FISH. Mr. Speaker, we are all We do not believe that OSI should be concerned with the swift prosecution handicapped to compete. Athletes are barred from offering such evidence for judi­ assigned to competition levels based of Nazi war criminals living in the cial consideration in the United States. United States. As a member of the Much of the persecution practiced by the upon age and performance. This House Judiciary Committee who Nazi regime occurred in Eastern Europe, allows even those at the lowest level to helped initiate the Office of Special and it behooves OSI to seek out the evi­ advance to the International Games. Investigations in the Department of dence of that persecution at its source. With so much to look forward to, the To prevent the use of evidence obtained in participants at the Western Pennsyl­ Justice, I have long been concerned Eastern Europe from even being considered that OSI be able to utilize all re­ in American cases would be to ignore and vania Bowling Tournament gave ev­ sources throughout the world in pro­ indeed to "hush-up" the persecution of erything they had not only to excel in viding evidence against these criminals Poles and other groups who bravely opposed the Games, but to believe in them­ against humanity. Nazi tyranny in countries now behind the selves. Butler County Special Olym­ Over the past several years, there Iron Curtain. Accordingly, we support OSI pics gave these special athletes what has been concern over the use of evi­ in its world-wide effort to uncover evidence they so richly deserve-a chance to dence obtained behind the Iron Cur­ of Nazi persecution for use in cases brought here at home against accused Nazi persecu­ succeed. tain. Several ethnic organizations have tors. Special Olympics honors the spirit questioned the use of such evidence in Yours very truly, of the Greek Olympics-competing U.S. courts. My position has been, and ALOYSIUS A. MAZEWSKI, and winning are secondary to experi­ it has been supported by OSI and the President.• courts, that such evidence must be re­ encing and participating. This ideal is best summed up in the motto of the viewed on its face and judged for com­ SPECIAL OLYMPICS petence and credibility along with Special Olympic athletes: "Let me win, other evidence submitted in Nazi war but if I cannot win, let me be brave in HON. JOE KOLTER the attempt."• criminal cases. We have little choice in OF PENNSYLVANIA some instances whether to use such IN THE HOUSE OF REPRESENTATIVES evidence, as it may be the most rele­ vant in certain cases. Thursday, February 21, 1985 I was pleased to receive a copy of a e Mr. KOLTER. Mr. Speaker, I would letter to OSI dated January 9, 1985, like to take this occasion to praise a from the Polish American Congress program which lends a special dignity February 21, 1985 EXTENSIONS OF REMARKS 3077 ESTONIA Citizens of the region are outraged As the title implies, this bill seeks to because many of the closings affect restore original congressional intent of HON. BRUCE A. MORRISON some of the most popular recreational four important civil rights statutes: OF CONNECTICUT boating waters in the country. The Title IX of the Education Amend­ IN THE HOUSE OF REPRESENTATIVES two stations in my district responded ments of 1972, title VI of the 1964 to over 500 emergencies last year Civil Rights Act, section 504 of the Re­ Thursday, February 21, 1985 alone. The Coast Guard uses a rigour­ habilitation Act of 1973, and the Age e Mr. MORRISON of Connecticut. ous definition to determine whether or Discrimination Act of 1975. This Mr. Speaker, I am proud to join with not a life has been saved, but even by action is necessitated by last year's Su­ Estonians around the world in com­ Coast Guard standards, these stations preme Court ruling, Grove City versus memorating on February 24, 1985, the saved 32 lives last year. Bell, in which the high court narrowly 67th anniversary of the independence While we need to be fiscally respon­ interpreted title IX, thereby establish­ of Estonia. I would especially like to sible with our tax dollars, we cannot ing a precedent for equally restrictive salute the Connecticut Estonian Socie­ balance the budget with people's lives interpretations of similarly worded ty, and its president, Mrs. Vaike and safety. These proposed consolida­ rights bills. To quell doubts that were Lugus, for their work in advancing the tions and closings are, unfortunately, raised in last session's civil rights cause and spirit of Estonian independ­ a classic example of being penny-wise debate, the language of H.R. 700 is ence among the people of Connecticut. yet pound-foolish. particularly clear as to the scope of The Estonian people have always Recently I had the opportunity to the legislation and the enforcement held the principals of liberty and jus­ attend a meeting of the City Council provisions contained therein. tice in the greatest esteem, and adopt­ of St. Clair Shores, Ml. The people of I know that I was one of many who ed at the time of independence a con­ that city almost literally live on the watched with disappointment during stitution which firmly embraced demo­ water. To them, relying on the Coast the final days of the 98th Congress as cratic principals and protected the Guard is a fact of life when seas are the Civil Rights Act of 1984 became rights of all citizens. Sadly, the resto­ high, boats are stranded, and people's the victim of partisan politics. I would ration of Estonian sovereignty after lives are threatened. I would like to hope that this year's deliberations centuries of foreign domination lasted share with my colleagues the council's would put politics aside and focus on little more than two decades. The free­ thoughts, as outlined in the resolution the ultimate goal of this legislation: dom of Estonia was brutally crushed unanimously approved at their recent the prohibition of discrimination, on in 1940 by the Soviet Union, in collu­ meeting: sion with Nazi Germany. the basis of sex, race, color, national Since declaring Estonia a republic of COAST GUARD STATION RESOLUTION origin, age, or handicap. Surely, this is the Soviet Union, the Soviets have Whereas the U.S. Coast Guard Station in something we can all work toward.e waged a ruthless campaign to suppress St. Clair Shores has provided safety services and boater education to thousands of St. the vibrant national identity, culture, Clair Shores boating enthusiasts, and WHERE WE'RE HEADED IN and language of the Estonian people. Whereas the imminent closing of the St. SCIENCE EDUCATION The United States has never recog­ Clair Shores station has been announced, nized the illegal annexation of Esto­ and HON. JOE SKEEN nia, Lithuania, and Latvia by the Whereas boat owners, marina operators, Soviet Union, and continues to main­ citizens and the City Government are con­ OF NEW MEXICO tain diplomatic relations with repre­ cerned regarding boater safety in this area IN THE HOUSE OF REPRESENTATIVES sentatives of the independent republic of Lake St. Clair, and Thursday, February 21, 1985 of Estonia and with her neighbors. Whereas the next twelve months are of special concern because of forecasts of lake e Mr. SKEEN. Mr. Speaker, more Against all adversity, Estonians con­ levels approaching 1978 high points, than anything else, our Nation's tinue to place the highest value on Now therefore be it resolved by the City future depends upon our understand­ human rights and freedom. The hope Council of the City of St. Clair Shores, that ing of science. We must count upon that Estonia may again shine as a free We urge our citizens to express concern our system of education to provide and independent nation burns strong regarding the imminent closing of the Coast that understanding. In an address en­ in the hearts of all Estonians through­ Guard Station, and titled "Where We're Headed in Sci­ out the world. I join with Connecticut Be it further resolved, that the City Coun­ ence Education," Dr. Manuel J. Justiz, Estonian Society and Estonians every­ cil express the continued need for the U.S. Coast Guard Station and its support and Director of the National Institute of where in that hope and in the celebra­ boater safety services by urging the U.S. Education, explained the situation tion of Estonian Independence Day·• Senators and Representatives as well as very well. His remarks have a message Michigan official to strongly request the for everyone. CONSTITUENTS STRONGLY EN­ continuation of the Coast Guard Station in WHERE WE'RE HEADED IN SCIENCE EDUCATION St. Clair Shores. DORSE COAST GUARD OPER­ Mayor: Ted B. Wahby. America is a great country. A people of di­ ATIONS Councilmen: Arthur M. Armstrong, Wil­ verse backgrounds, nationalities, and cul­ lian J. Callahan, Casper J. Frederick, tures ... blended into a single nation. We HON. DAVID E. BONIOR Robert A. Hison, Joseph R. Krutell, Marcel have extensive natural resources, abundant A. Werbrouck.e power, a highly productive agriculture OF MICHIGAN system . . . that has become a breadbasket IN THE HOUSE OF REPRESENTATIVES of the world. We have extensive manufac­ Thursday, February 21, 1985 THE CIVIL RIGHTS turing that has fueled the economy; a histo­ ry of freedom . . . that allows us to enjoy e Mr. BONIOR of Michigan. Mr. RESTORATION ACT OF 1985 ourselves . . . and speak out on issues; we Speaker, I rise to share with our col­ have a tradition of democracy that began in leagues the concern of my constitu­ HON. BYRON L. DORGAN the earliest days of the country and persists ents regarding the administration's OF NORTH DAKOTA today. The will of the people is supreme. It hasn't always been that easy. We have proposal to close Great Lakes Coast IN THE HOUSE OF REPRESENTATIVES Guard stations. defended our rights in the past and we must The proposal put forth by the ad­ Thursday, February 21, 1985 be prepared to defend those rights in the future. In spite of the difficulties, we have ministration will close or consolidate e Mr. DORGAN of North Dakota. Mr. built the greatest country in the world. 13 Coast Guard facilities in its Ninth Speaker, I am pleased to Join a But we are having problems. America is District, the Great Lakes region. Two number of my colleagues today in co­ being threatened by an underground epi­ of these sites are within my congres­ sponsoring the Civil Rights Restora­ demic of inferiority in our education system. sional district. tion Act of 1985. Nothing less than our standard of living, 3078 EXTENSIONS OF REMARKS February 21, 1985 the strength of our economic system and problem that may occur on the shop floor in U.S. STUDENTS ARE LEARNING LESS THAN THEY our national security are at stake. analytical terms. Their counterparts on as­ DID IN THE PAST The following material, compiled with the sembly lines in Detroit would be hard­ My second point is that U.S. students are help of one of my advisors at the National pressed to communicate as well. Our Ameri­ learning less now than they did in the past. Institute of Education-Dr. Lawrence Gray­ can workers simply do not have the base in son, summarizes just how serious the prob­ math and science that the Japanese have There are a number of indicators of this, lem really is. I might add that unlike other developed. but probably the one that gets the most at­ reports which talk simply about the condi­ tention are the SAT scores. As we look over The problems are serious. Let me give you the past 20 years, we see that SAT scores re­ tion of math and science education, what I a few highlights. In Maryland in 1980, there am about to share with you relates those semble a ski slope-all downhill. Now in the were about 50,000 high school students who last year or so, we've had a little blip at the problems directly to the economic conse­ took math courses from some 400 teachers quences that we are facing as a nation. bottom. Maybe it's an upturn. Maybe we've who were not certified in mathematics. In bottomed out and are beginning to go up AN OVERVIEW OF WHAT'S HAPPENING New Jersey last year, 51,000 college fresh­ once again. And then maybe those one- and Let's take a look at what's happening. men were tested to see if they could handle two- and three-point rises are just a slight This chart shows the free world car and ninth-grade math problems. Keep in mind, correction with the overall trend line still truck production rankings from 1950 to these 51,000 are students who had already headed down. 1982. You can see that in 1950, there wasn't been accepted in college. Of that number, 88 a single Japanese company among the top percent were deemed not proficient in As an indication, in the math area, the 15 automobile producers in the free world. mathematics-ninth-grade mathematics. 1963 average math test scores for the SAT In 1960, there was one. In 1970, there were were 502. In 1984, they were 467. That's a However, New Jersey has been conducting 35-point drop. In the verbal area, which was four. Today, six of the top 15 automobile that exam for about five years and that's companies in the world are Japanese. even more volatile, the drop was from 478 in the first improvement they've seen in that 1963 to 425 today. If you look at the United States, you can period of time. see that the trend went in just the opposite THERE IS A LAXITY OF STANDARDS direction. In 1950, there were seven Ameri­ Let me give you a slightly different dimen­ can companies on that list. Today, there are sion of the problem. In 1964, there was an My third point is that these problems, as I only four-only four American companies international assessment of mathematics see them, are really due to a laxity of stand­ among the top 15 auto producers in the that was held around the world. That inter­ ards in American schools. The National world. national assessment involved 14 countries. I Commission on Excellence in Education rec­ The marketplace is changing and clearly want to only focus on five-the U.S., Japan, ommended last year that a high school cur­ education plays a key role in what's happen­ West Germany, France and Great Britian. riculum should include four years of Eng­ ing in the world at the present time. Educa­ You can see in that assessment, that Japan lish. There should be three years of science, tion is the keystone to industrial competi­ scored No. 1. The European countries scored three years of mathematics, three years of tiveness and that's one of a number of rea­ two, three and four, and the U.S. was No. 5. social science, two years of a foreign lan­ sons why I'm very much concerned about Now, sure the data is 20 years old. However, guage and a half-year of computer science. what's happening in this country at the remember the people who took these exami­ Now other than computer science which is present time. nations 20 years ago are now in the mid­ something that's new, that curriculum is Currently, the U.S. has more low-skill and levels of management and industry, moving not much different than what college-bound less high-skill manpower than it really up to the top levels in those industries. students were taking 20 years ago. It was needs for its future-especially as we look They've in government, running the govern­ fairly common. Yet just before "A Nation at forward to a high-technology future. Jobs ment. These are the people who are making Risk" was released in April 1983, the Na­ are changing. Our economy is changing. the decisions in this country at the present tional Center for Education Statistics ana­ We're getting into computers, telecommuni­ time. lyzed transcripts of high school students cations, biogenetics, into advanced informa­ Let's look at another assessment in sci­ from all parts of the country. What they tion processing-all requiring different ence conducted in 1970. It examined those found was that only 1.8 percent-less than types of skills. same five countries-the U.S., Japan, West one in 50 seniors-met the curriculum Let me show you what's taking place at Germany, France and Great Britian. The standards laid down by the National Com­ the Ford Motor Co. At the present time, results were virtually identical. Japan came mission on Excellence in Education. Ford has some 2,000 robots in their plants. out No. 1, the European countries in the Thankfully, however, we are seeing The corporation expects that by the end of middle, and the U.S. No. 5. change. Ever since "A Nation at Risk" was this decade, which isn't too many years Let's take a little different tack and look released, there have been several states in­ away, it will have something like 7,000 at growth and manufacturing productivity crease their requirements for math and sci­ robots. Those robots mean changes in jobs since 1970. Same result. Japan No. 1. The ence. If we take a look at what's happening ... changes in job skills ... replacement of European countries, two, three and four, in mathematics, we see the following situa­ certain traditional jobs ... creation of new and the U.S. No. 5. This obviously doesn't types of jobs. tion-that across the country the states in We've got to be ready to handle it. Clear­ say that education is the only piece that blue are states that have now approved in­ ly, everyone needs reasonably good familiar­ drives economic manufacturing productivi­ creasing the standards in mathematics to ity with math and science-not just college­ ty. But clearly education is an essential three years, requiring three years of mathe­ bound students. component for the economic health of the matics for graduation from high school. Dental hygenists, aircraft mechanics and nation. The Japanese have made major States shown in red are considering these instrument repair technicians must all be strides in industry because of a high level of changes. familiar with the basic concepts of chemis­ math and science education. If you take a look at the states now re­ try, physics and biology-just to do the jobs U.S. STUDENTS ARE LEARNING LESS MATHEMAT­ quiring three years of science, you see there that they're going to be confronted with. ICS AND SCIENCE THAN THEIR PEERS IN OTHER are five and two others have proposed it. Accounting clerks, supply personnel, auto COUNTRIES Not a strong showing nationwide, if you mechanics-they have to at least learn how consider those important subjects, but at to estimate costs and keep accurate records. I believe there are four dimensions to the least there's been some movement. In 1983, People like nurses' aides, clock repairers, education problem we are facing. First, I be­ there were not any states on either of these survey technicians all have to be familiar lieve U.S. students are learning less mathe­ lists. None. And in fact, most states required with lab equipment and with the procedures matics and science than their peers in other not much more than a year of science and, that are conducted in laboratories. industrialized countries. at most, two years of math-and some didn't I'm convinced that one of the reasons that In October, the results of the second even require that. the Japanese have done as well as they have international assessment of mathematics is because of the high degree of mathemat­ were released. It was just as ominous. There THERE IS A SHORTAGE OF :.UTH AND SCIENCE ics and science that's taught to all students were five categories of mathematics achieve­ TEACHERS in their elementary and secondary schools. ment that were investigated. In every one of The fourth major point I'd like to make For instance, every graduate of a Japanese those five categories, the Japanese came in has to do with the serious shortage of quali­ high school must take the elements of prob­ No. 1 among 20 countries that were in­ fied math and science teachers-something ability and statistics. Now we don't expect volved. What did the U.S. fare? In statistics that many of us in this room are very much them to become statisticians, but when they we came in eighth. In arithmetic, we came aware of. Virtually every state in the coun­ go on to a production line and get a job, per­ in 10th. In algebra we came in 12th. In ge­ try has indicated that they have either a haps as a blue collar worker, they have ometry, 16th. In measurement we came in shortage or considerable shortage of math enough background to be able to describe a 18th. and science teachers at the secondary level. February 21, 1985 EXTENSIONS OF REMARKS 3079 In California in 1982, only 97 of 400,000 Thank you again for inviting me to be WMAL thanks the businessmen, lawmak­ students in public four-year institutions are with you.e ers, auto dealers, bar owners, and concerned preparing to teach secondary school math. citizens who've given their time and talent In New York in 1982, only 32 graduating to this effort. college seniors planned to teach high school JERRY SACHS, WRAP LEAD We especially salute the president of the math. LOCAL FIGHT AGAINST DRUNK Capital Center, Jerry Sachs for his leader­ In New Hampshire in 1982, only one col­ DRIVING ship. Because of committed people like lege graduate planned a career teaching Jerry Sachs WRAP has helped reduce alco­ math. HON. MICHAEL D. BARNES hol-related highway deaths by 22% in the One aspect of the problem that's very im­ Greater Washington Area. portant and that's the salary portion. OF MARYLAND Thank you Jerry for caring and thank you You're not going to get good people into IN THE HOUSE OF REPRESENTATIVES for doing something for our community. teaching-especially in areas of extreme Thursday, February 21, 1985 Please call us with your thoughts at 686- shortage unless you pay them something 6363.e that's reasonable. •Mr. BARNES. Mr. Speaker, many Take a look at starting salaries and why people in Greater Washington are fa­ we can't get people going into secondary miliar with some of the generous INTRODUCTION OF AUBURN school teaching. Electrical engineers: start­ public service contributions made by DAM LEGISLATION ing this year the average starting salaries Abe Pollin, chairman of the board of this past June were over $26,000. Then we the Capital Centre and owner of the start dropping, $23,000 in mathematics, Washington Bullets and Capitals HON. NORMAND. SHUMWAY $21,000 in chemistry, $16,000 in biology and OF CALIFORNIA $14,000 for the elementary or secondary sports teams. Today, I bring to the at­ school teacher. tention of the House the quiet, yet ef­ IN THE HOUSE OF REPRESENTATIVES It takes a very dedicated person to stay fective volunteer community efforts of Thursday, February 21, 1985 with mathematics or science teaching. Cer­ Abe Pollin's close colleague, Jerry tainly salaries are not the only issue and Sachs, president of the Capital Centre, e Mr. SHUMWAY. Mr. Speaker, they're not sufficient to get people to go in, who has become an important leader today I am introducing a bill to reau­ but I think it is a necessary condition. in the fight against drunk driving. thorize a water project which is very If we want good people in there, we're Jerry Sachs, who also serves on the important to the State of California, going to have to pay them reasonably well. executive board of Mothers Against indeed to the entire Nation. This THREE SOLUTIONS Drunk Driving CMADDl, has been one project, the Auburn-Folsom south unit Now, what can we do to rectify the prob­ of the leading forces behind the was originally authorized in 1965. Con­ lems I've mentioned this afternoon? highly successful Washington Region­ struction was initiated but because of I think there are three things we can do. seismic and environmental concerns, it First, we need leadership. You represent a al Alcohol Program CWRAPl. WRAP professional society-the National Science is the coalition of business, govern­ was never completed. This Nation has Teachers Association. You, in effect, are the ment, and community leaders that already invested over $300 million into spokespeople for the science teachers of marshalls and coordinates local re­ this project and it is presently time to America. The public places a great deal of sources to eliminate drunk driving in finish what was started some 20 years credence in your society, they listen to what Metropolitan Washington. Largely due ago. you have to say. The public obviously to the many unselfish contributions of This project has not been without doesn't follow blindly, but societies such as Jerry Sachs, WRAP has become a controversy; however, it is a testament yours can provide a great deal of leadership to the legitimacy of the need for this in solving the problems we face. model community-based organization Another step to solve the problems I've against drunk driving. project that it has never been deauth­ mentioned is to create linkages and partner­ Through its ongoing series of sea­ orized. In this legislation which I am ships. By joining together-teacher to sonal public information and educa­ introducing today, I strongly believe teacher, professional to professional, person tion campaigns, WRAP has helped to that the last of the controversies sur­ to person-we can confront the issues I've create a new awareness among Wash­ rounding this project has been ad­ mentioned. ington, DC area residents about the dressed and resolved: the effect of this Another step is action and public aware­ tragic public health and safety risks project on the beautiful wild, and ness. If action is going to take place, then drunk As the public is going to have to be aware of posed by driving. a result, al­ scenic lower American River and the what's happening to support the issues and cohol-related traffic deaths have Sacramento area. initiatives that societies such as the science dropped dramatically in the metropoli­ In the past, the majority of residents teachers support. tan area. who live in the city and county of Sac­ Public awareness and public perception is I submit for the attention of our col­ ramento are understandably guarded critical in any campaign seeking change. leagues a recent editorial by Andy about their wild and scenic lower Take a look at this editorial cartoon which Ockershausen, executive vice presi­ American River. Accordingly, the most shows the public's perception of high tech­ dent of WMAL Radio in Washington, ardent of the area's river-recreational­ nology. The view of the cartoonist, in this DC, that pays special tribute to the case, was that Japanese education was very ists have felt an urgent need to active­ serious. The Japanese were doing a very se­ superb WRAP organization and the ly protect the river from any develop­ rious job of teaching mathematics. The leadership of Jerry Sachs. ment-such as the construction of the Soviet Union was very intense in what they The editorial follows: Auburn Dam-which in their eyes were teaching. The U.S. was very frivolous, WASHINGTON REGIONAL ALcOHOL PROGRAM might diminish their plentiful recre­ paying more attention to video arcades than I'm Andy Ockershausen, Executive Vice ational resource. Ironically, it is only to homework. They are spending more time President of WMAL, Inc., with an AM-63 because of effective water develop­ with Pac Man then they are with the books. opinion. ment, the Folsom and Nimbus Dams, It's a perception of a major newspaper-in Quietly, but very effectively, a group of this case, The Washington Post-and a concerned people from greater Washington that the river presently enjoys its high highly respected political cartoonist. But has formed one of the country's finest grass flow levels. Indeed, despite the many that's why we need to influence the public roots coalitions against drunk driving. benefits such as water, flood control, awareness and public perception. The organization is WRAP-the Washing­ and hydropower which the Auburn So we need three things: Leadership; link­ ton Regional Alcohol Program-and its ac­ project would offer the area, Sacra­ ages and action. complishments already are impressive. mento, orchestrated by these recrea­ Ladies and gentlemen, America is a nation WRAP is responsible for such programs as tionalists, has raised its collective voice of doers. We have prided ourselves on indi­ Safe Holidays, free taxi rides for party-goers against the project in the past on the vidual achievement. We haven't waited for in no condition to drive . . . Project Gradua­ others to tell us what to do. We have re­ tion to prevent deaths and injuries at Prom basis that an extension of the Folsom sponded to opportunities and have built a Time ... Safe Summer ... which encour­ south canal would mean an end to the great nation. And we must now work to aged people to report drunk drivers . . . and many river-activities that it has keep America great. much more. become accustomed to. 3080 EXTENSIONS OF REMARKS February 21, 1985 To a large degree, this passionate available water supply which has al­ benefit from the project will help Sacramento-felt need to protect the lowed for the political luxury of pro­ share in the costs. This policy is one river from the construction of Auburn river policies. In the future, however, which the Congress, at a time of seri­ has been understandable since the existing ground water supplies will ous Federal deficits, has generally ac­ project's original 1965 operating sce­ become more and more depleted and cepted as a requirement for any and narios placed too high an emphasis on the area's demand for water will inevi­ all new Federal water development. delivering water down the Folsom tably rise. Under these predictable Fortunately, the needed benefits to be south canal at the expense of the conditions, it is hard to imagine that gained from a completed Auburn Dam lower American River segment. How­ the wishes of the recreational inter­ are substantial enough to warrant ever, this is no longer the case: the op­ ests alone will dictate the area's future cost-sharing initiatives and make this erating scenarios have been changed political climate at the expense of the project a successful role model for the to accommodate for the needs of the increased water needs of both irriga­ responsible execution of needed water river as a recreational and fisheries re­ tion and municipal and industrial development. source. In this regard, the area's river water users. Consequently, any contin­ The Reagan administration, the protectors have served their cause well ued efforts to merely protect the Deukmejian administration, and most by forcing the reevaluation of the status quo of the river through politi­ of the local officials and entities overall scope of the project and help­ cal means-rather than planning within the service areas of the Auburn ing to change the project's definition ahead of future needs-will only serve unit are all strong supporters of the to a truly multiuse one which can ac­ to assure that the lower American will, project. And, with the many water, hy­ tually enhance the lower American's over time, experience a dramatic de­ dropower, and flood control benefits flows. For this reason, it is important crease in flow levels. which the project has to offer Sacra­ that the river's advocates do not allow From a short-range perspective, the mento, and now that proper legislative their continued passion to cloud their area can be confident that over the assurances can guarantee that the ability to recognize a good thing when next 15-20 years, the Auburn Dam, if project can only help the long-range they see it: Just as the Nimbus and reauthorized today, would not effect recreational aspects of the river, I Folsom projects have benefited the the river's flow levels by 1 drop be­ strongly believe that it is in the area's river, so, too, will the presently envi­ cause it would not be operationally best interest to finally join in support sioned Auburn project if constructed. completed until then. After comple­ as well.e In fact, in order to truly project the tion of the project, its effect would long-range flows in the lower Ameri­ still not be felt until the year 2020 can, the Sacramento area should actu­ when the area water demands are pre­ GOLD MEDAL IN MEMORY OF ally support the presently envisioned dicted to be so great that, without HARRY CHAPIN Auburn Dam as a means to lasting Auburn, the river would begin to de­ river security. Let me explain why. crease dramatically. At that time, the HON. BYRON L. DORGAN The lower American is currently added water and operational flexibility OF NORTH DAKOTA without long-range protection and which Auburn would provide the IN THE HOUSE OF REPRESENTATIVES within 20-30 years, its flows will di­ Bureau of Reclamation with would minish to the point where, if the river help protect the river's flow levels. In Thursday, February 21, 1985 is to sustain present-day recreational fact, the operational minimum flow e Mr. DORGAN of North Dakota. Mr. and fisheries levels, it will need the ad­ levels which can be guaranteed by Speaker- ditional water which the Auburn Auburn, and which have been agreed Feeding hungry people is important in the project can supply. This diminishing to by both the Bureau of Reclamation short run, but in the long run you've got to lower American River flow picture be­ and the U.S. Fish and Wildlife Service, realize that powerful forces are creating comes clear upon examining the would preserve the river's present fish­ those hungry people • • •. Our job is to look Bureau of Reclamation's projections eries and rafting levels virtually for­ at those forces and to deal with them. which indicate that future water needs ever. Mr. Speaker, today, amidst daily will necessitate a dramatic increase in Aside from this long-range fish and news reports of the drought and the utilization of both the existing recreational enhancement, the project famine that have besieged many parts upriver water rights held by Placer will supply much-needed water to of Africa, these comments do not seem and El Dorado Counties, and the exist­ Placer, El Dorado, Sacramento- unusual. But when they were spoken 5 ing Folsom south water rights held by 350,000 acre-feet/year-and San Joa­ years ago, they were startling-and the Sacramento Municipal Utility Dis­ quin-240,000 acre-feet/year-Coun­ equally ambitious. trict CSMUDJ and East Bay Municipal ties, along with a sizable portion of The man who spoke these words was Utility District CEBMUDJ. Thus in 20- clean, marketable hydropower for the Harr-y Chapin, well-known folksinger, 30 years, water users will have to rely area. Additionally, the flood control songwriter and poet. His goal at the heavily on the river as a water supply capacity provided by a completed time was the establishment of a Presi­ source, thereby severely decreasing Auburn Dam would protect the Sacra­ dential Commission on Hunger. present flow levels and jeopardizing mento area to the degree determined Harry Chapin's energy and commit­ the river's recreational capabilities. necessary by the Army Corps of Engi­ ment to end the scourge of world Many in the Sacramento area ignore neers. Without the Auburn Dam, the hunger was the principle catalyst this threat to the lower American be­ area will not be adequately protected behind the eventual creation of a Pres­ lieving instead that they will be able from serious flooding devastation and idential Commission. These same to protect their river by preventing­ alternate less promising flood control qualities led Harry to form the Food as they claim has been done in the measure. Policy Conference, to organize World past-the full utilization of these Economically, the project still Hunger Year, and to perform hun­ aforementioned water rights through enjoys a positive benefit/cost ratio of dreds of benefit concerts, the proceeds political means. However, for the river 1.24:1. This means that for every of which were donated to fight world advocates to rely too heavily on the dollar spent on construction, the hunger. proriver political climate to protect Auburn project would render $1.24 Three years ago, Harry Chapin was the river forever would be unwise. The worth of benefits. killed in an automobile accident. Yet fact is that it has not primarily been Negotiations are presently underway the memory of his commitment to this favorable political climate that with potentially interested non-Feder­ fight world hunger lives on. To com­ has been able to maintain the river at al investors to help finance the project memorate his crusade and to celebrate its heretofore high levels; rather, it through cost sharing. Under this fi­ them are qualities he embodied, I am has been the area's adequate and nancing scheme, those who stand to joining my colleagues, ToM DOWNEY, February 21, 1985 EXTENSIONS OF REMARKS 3081 JIM JEFFORDS, and ROBERT MRAZEK in duty, honor, and serve to America will uniting Lithuanians with their home­ reintroducing legislation to strike a be continued at our national service land has permitted about a third of gold medal in his memory. A posthu­ academies. those deported to return home. The mously awarded medal should serve as America's Armed Forces have a long rest are believed to have perished in a sign from Congress that Harry Cha­ and noble history. In times of war and Siberia. pin's struggle continues and that the danger we look to the Army, Navy, The United States continued to rec­ national conscience that he stirred so and Air Force, not only for protection ognize the legitimate independent effectively in the 1970's remains awak­ but also to uphold our traditions of Lithuanian Government which was es­ ened to this global challenge.e freedom and democracy when threat­ tablished on July 27, 1922. We contin­ ened by foreign tyranny. Our Armed ue to maintain diplomatic relations Forces include a diverse cross section with the representative of the former THE ACADEMY ADVISORY COM­ of this country's population; some 4. 7 independent Government. The Lithua­ MITTEE OF THE llTH CON­ million women and men contribute to nian people continue to resist the tyr­ GRESSIONAL DISTRICT OF our national safety. anny of their subjugators and we are CALIFORNIA I would like to congratulate the out­ here today to join them in their ef­ standing young men and women who forts. In reasserting our recognition of HON. TOM LANTOS have been chosen to attend our service the sovereignty of the Lithuanian OF CALIFORNIA academies from the 11th Congression­ State and its people we support their IN THE HOUSE OF REPRESENTATIVES al District. I wish them every success­ inalienable right to national independ­ Thursday, February 21, 1985 on their shoulders rests the great re­ ence and individual freedom.e sponsibility of this Nation's security e Mr. LANTOS. Mr. Speaker, each for future generations.e year every Member of Congress has HE WANTED TO DO WHAT THE the honor and responsibility of select­ OTHER KIDS DID, AND HE ing outstanding young men and LITHUANIAN INDEPENDENCE STILL DOES women as nominees for the four serv­ DAY ice academies where our future mili­ HON. TONY COELHO tary leaders are trained-the U.S. HON. HAMILTON FISH, JR. OF CALIFORNIA Naval Academy at Annapolis, the U.S. OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Military Academy at West Point, the IN THE HOUSE OF REPRESENTATIVES Air Force Academy at Colorado Thursday, February 21, 1985 Springs, and the Merchant Marine Tuesday, February 19, 1985 • Mr. COELHO. Mr. Speaker, every Academy in New York. These institu­ e Mr. FISH. Mr. Speaker, today we once in a while, a story about courage, tions play a vital role in ensuing the are joining together with the Lithua­ optimism, and extraordinary human security of our country for coming nian people in their long and noble spirit touches us in a special way. That generations through training our struggle for independence and free­ is the case of young Jacob Geller, of future military leaders. dom. Their hopes and aspirations to Fresno, CA, who has overcome physi­ The task of making these important be free from Soviet domination are cal challenges to become a cadet in the nominations would be difficult, if not shared by free peoples throughout the Wawona Junior High School Cadet impossible, without the assistance I re­ world. Since the tragic June days of Corps. While this is an achievement ceive from the Congressional Academy 1940 and 1941 when the Soviet Union within itself, what is most admirable is Advisory Committees that work with invaded the Baltic States of Lithuania, that this is just one instance of the de­ me in the 11th Congressional District Latvia and Estonia, we have refused to termination and pride which is a char­ of California. I would like to call the recognize the incorporation of these acteristic of Jacob's attitude toward attention of my colleagues to their val­ three countries by the Soviet Union. life. uable service. The extraordinary ef­ Many of the approximately 45,000 I would like to share Jacob Geller's forts and unselfish commitment of Lithuanians who were lost to their story with you, and salute Jacob for these men has led to the selection of a country during this first Soviet occu­ his patriotism, persistence and positiv­ truly fine group of young people to pation during World War II fled ism. serve their country. Soviet domination, were deported to [From the Fresno Bee, Feb. 3, 19851 Rear Adm. Herachel Goldberg [ret.l Siberia, or were executed when the HE WANTED To Do WHAT THE OTHER Kms chairs the Naval Academy Committee, Soviet forces retreated under German DID, AND HE STILL DOES and he is joined by Tom Teshara, the attack. Unfortunately, the loss of the (By Doug Hoagland> west coast regional director for Annap­ war by Germany did not spell freedom Jacob Geller is 14 and paralyzed from the olis; Mr. Tom Mohr, the principal of for Lithuania, as it did not for many waist down because of polio. Last year, he Westmoor High School; and Pablo other freedom-loving peoples in East­ decided to join the cadet program at Perez, who is the special education co­ ern Europe. Since its annexation by Wawona Middle School. ordinator for Jefferson High School. the Soviet Union, we have heard little Carlos Reynoso, the cadet teacher, said The Air Force Committee is chaired of the events within the country. The sure, but he assumed Jacob would have by Col. Robert Stirm [ret.l, and its borders of the Baltic States have been some limitations. sealed against the outside world and After all, how could a wheelchair-bound members include Louis A. Turpen, cadet march in parades? And how could he who is director of San Francisco Inter­ each other. attend out-of-town events where cadets slide national Airport and Col. Larry Otto What news we do hear is uniformly in and out of sleeping bags every night? [ret.l, the chief test pilot for United bad. Because of Soviet policies there How could Jacob succeed in a program Airlines. has been a considerable change in the where mobility is a given? Lt. Col. John Miller leads the West composition of the population of Lith­ Al Geller was confident of his son's abili­ Point Committee and is joined by Col. uania. During the second Soviet occu­ ties. He and his wife Arly, had learned long Clayton Scott [ret.l and Brig. Gen. pation in 1944, some 80,000 Lithuani­ ago not to place limitations on Jacob. ans fled to Western Germany, and an­ The cadet teacher soon learned that, also. Robert Tarbox [ret.]. Today, Jacob is a corporal in the Wawona I would like to extend my heartfelt other 60,000 were found in Eastern cadet corps. He maneuvers his arm-driven thanks to these men who have assisted Germany and . deported to Siberia. wheelchair in marching formations, knows in the decisionmaking process, and I During the next 2 years an additional the dos and don'ts of inspections and can congratulate them on their outstand­ 145,000 Lithuanians were deported. In teach other students the basics of first aid, ing selections. Their tireless dedication 1949, 60,000 more were deported. Since discipline and rifle safety. ensures that the rich traditions of Stalin's death, a revised policy of re- Jacob speaks sparingly about himself. 3082 EXTENSIONS OF REMARKS February 21, 1985 Why did he join cadets? Jacob hopes others feel the same way I am forced to believe that if Henry Liu was "I thought it would be fun." when he goes to high school next year. He white, then this case would be handled dif­ What does achieving rank mean to him? would like to continue in cadets. ferently by our government and other "The higher you are the more respect you Jacob makes it clear, though, "I don't groups. get." want to get too carried away with it." Imagine if you will the murder of an Wht happens when he gets tired of push­ He has no intention of fulfilling his dad's American journalist of Polish ancestry here ing himself during a parade? vision of Jacob as the first wheelchair cadet in this country by agents of the Polish gov­ "If I need a hand, I need a hand." at West Point. ernment because he wrote about the repres­ Jacob has been challenging limitations No way, Jacob said. Life in the Army is sion in the country from which he emigrat­ almost from the time he arrived in the not for him. "You're away from home and I ed from. Or imagine if you will, an experi­ Geller household nearly 10 years ago. He don't feel like doing stuff like that," he enced American reporter of Iranian ances­ came as a 4-year-old orphan from South said.e try murdered by Iranian terrorists because Vietnam. he had the courage to write about the Aya­ At about age 5, Jacob decided he wanted tollah Khomeini. to sleep upstairs with the other kids at the THE MURDER OF HENRY LIU Geller household. Led by an appropriately outraged press His dad pointed out the obvious limita­ HON. NORMAN Y. MINETA there would be an outcry to demand justice. tions. The national outcry would be enormous. OF CALIFORNIA Does anyone doubt that the President Jacob went up the stairs anyway. He IN THE HOUSE OF REPRESENTATIVES pulled himself up by the elbows, his legs would take to the airwaves to denounce dragging behind. It took him 25 minutes. Thursday, February 21, 1985 such an act? Does anyone question that "Then he yelled, 'Hey, Dad. Let's move my issues would be raised at the highest levels e Mr. MINETA. Mr. Speaker, a U.S. of the State Department, the Justice De­ bed.'" citizen has been murdered in Califor­ It was moved. partment, or the White House? Would not And eventually, Jacob could make it up · nia by agents of the Taiwanese Gov­ this story be front page news? the stairs in under four minutes. He would ernment because of that man's writ­ Yet an American of Asian ancestry is slide down on his stomach. ings in criticism of that Government. killed and this has not happened. Said Geller: "He wanted to do what the Henry Liu, the murdered man, was a Mr. Chairman, I wrote to the Attorney other kids did, and he still does." resident of Daly City, CA. General on January 11th asking for a strong When his buddies head for Manchester The two men primarily responsible response from the Administration, and so Center, Jacob wheels along in his chair. He for his killing have fled to Taiwan, and far-now, nearly a month later-all I have goes to the store for his mom and he at­ our efforts to date to seek their return gotten back is a two sentence form letter. tends school dances, where he's no wallflow­ With your indulgence, Mr. Chairman, I'd er. for trial in a U.S. court have been un­ like to read a portion of my letter to Attor­ Geller said he has it on good authority successful. In addition, three high offi­ ney General Smith: that Jacob can really "boogie" out on the cials of Taiwanese military intelligence "Given this Administration's vociferous dance floor. have been implicated in the killing. claim to be serious about stamping out ter­ How did a 14-year-old get such grit and I am deeply distressed by this whole rorism, your silence is inexplicable. I am confidence? affair. I am pleased, however, by the sorry to report that there is a growing feel­ Geller believes he and his wife are partial­ seriousness with which the Committee ing among Americans of Asian ancestry that ly responsible. "He's in a home that has en­ on Foreign Affairs is pursuing this im­ this Administration is not seriously con­ couraged him to do things. From our home cerned with the most basic rights of minori­ came the attitude, 'I am a person. I am im­ portant issue. On February 7, 1985, I ty citizens. portant. I can do.' " had the opportunity to testify before The letter continues, "It took several But there's more to it than that, Geller that committee's Subcommittee on months of sustained public pressure before said. "From his background came a survi­ Asian and Pacific Affairs, and have at­ the Justice Department acted in the murder vor's attitude." tached for Members' information that of Vincent Chin in Detroit. Please do not Of Jacob's background, the Gellers only testimony. make us go through that painful process know for sure that he was hospitalized for a I urge my colleagues to follow the again. The people of this nation are entitled time in South Vietnam, that he spent some developments in this case. to expect and receive protection from their time in an orphanage there and that the The testimony follows: government against foreign terrorism." first attempt to airlift him out of Vietnam And as I said, Mr. Chairman, all I have ended in an airplane crash. Of the 247 chil­ Thank you very much Mr. Chairman. I gotten back is a form letter acknowledging dren aboard the Air Force cargo plane, 98 want to congratulate you and this Subcom­ receipt of my letter. died when the plane went down. mittee for your leadership in holding Jacob's parents surmise other things I would like to briefly recount if I might today's hearing on this important matter. I the Vincent Chin matter referred to in my about their adopted son's background. His am proud to be a cosponsor of your resolu­ letter. On June 19, 1982, a young American father was an American soldier and his tion CH. Con. Res. 49) along with Mr. Leach, of Chinese ancestry was enjoying a last mother was Vietnamese. She may have Mr. Torricelli, and Mr. Lantos. night out before his wedding, when two abandoned him at birth. I particularly want to thank my fellow col­ The Gellers also think someone taught league from California, Mr. Lantos, for the auto workers in the bar with him blamed Jacob to beg on the streets. Even after arriv­ important role he has played in bringing him for the troubles in the auto business. ing in Fresno, he would throw his flacid legs this case to national attention. I share his Such scapegoating is not at all rare, but in to the side, roll his eyes back in his head concern that this tragic crime may indicate this case the two men followed Mr. Chin for and thrust his cupped hands forward. a violation of the Arms Export Control Act. half a hour, later beating him to death with Such, apparently, was the plight of dis­ I am here this afternoon for several rea­ baseball bats. For this crime, the Michigan abled children in Vietnam. In the United sons. courts sentenced the two men to $3,000 States, the Gellers sought the best medical As an American of Asian ancestry, I am fines and probation. Neither spent one care for him. concerned about acts of violence against night in jail. Jacob's paralysis is permanent, but doc­ other Americans of Asian ancestry. As you can imagine, protests mounted, tors were able to straighten his curved back Most importantly, I am here today as a and it took eight months of hard work to with surgery. The operation was performed citizen of this country, and as a national leg­ convince the Department of Justice to when he was 9. For nine months after that, islator, who believes most strongly that our indict these two men on federal civil rights he was in a body cast, unable to move. Constitutional promises of life and liberty charges. When the two men were finally Throughout the long recovery period, must always be paramount, and that it is prosecuted on federal charges, one was con­ Geller said, "Jacob's attitude never the responsibility of the federal government victed of violating Mr. Chin's civil rights. changed. The smile never left. to protect those promises. The same sort of situation appears to be "By age 4, he'd been through so much Henry Liu was a journalist, whose writing developing here. How many of these cases that he has a maturity and an acceptance of did not always please the government of have to be endured before the rights of his lot." Taiwan. And while I do not assume to know Americans of Asian ancestry are fully re­ It's a quality that people notice. who is ultimately responsible in a legal spected and protected by our government? Said Carlos Reynoso, Jacob's cadet teach­ sense for his murder, I am confident he was Americans of Asian ancestry are sick and er: "He's not handicapped. Sometimes I killed because of his work. tired of the failure of the federal govern­ think I'm more handicapped in my mind be­ Let me put this bluntly as I can. Henry ment to vigorously enforce the civil liberties cause I see him in a wheelchair." Liu was a U.S. citizen, just like all of us. Yet they possess as citizens of the United States. February 21, 1985 EXTENSIONS OF REMARKS 3083 I urge this Subcommittee to send a signal worked on in the past-then please tyranny and oppression. In their that the time has come to put an end to the count me as a supporter. struggle for independence, Estonian hypocrisy that condemns terrorism against There is no place for domestic ter­ U.S. citizens abroad, but turns a blind eye to youth continue to resist subjugation it here at home when opposing such terror­ rorism in this Nation. And if the ad­ through their demonstrations and ap­ ism puts us at odds with our so-called ministration will not act to stop it, peals to the free world. In support of friends. We cannot allow Taiwan to be a then let us in the Congress take the this quest for freedom, the United safe haven for those who murder U.S. citi­ lead. States refuses to recognize the annex­ zens. Thank you.e ation of the Republic of Estonia by I understand that the government of the Soviet Union. We who live free Taiwan has said it will try the two men urge the Government of the Soviet most directly responsible for this murder. ESTONIAN INDEPENDENCE DAY Three senior officials of the Taiwanese mili­ Union to comply with the provisions tary intelligence, including its head, are also of the Helsinki accords, and grant the HON. WILLIAM J. HUGHES citizens of Estonia their basic individ­ under investigation. Apparently FBI and OF NEW JERSEY Daly City police were able to interview the ual liberties and human rights. two men who have already been charged, IN THE HOUSE OF REPRESENTATIVES On this occasion, we salute the de­ but either did not seek or were not allowed Thursday, February 21, 1985 termination of the people of Estonia, to interview the intelligence officials. I e Mr. HUGHES. Mr. Speaker, I am and join in solidarity with them in regret we have not agressively sought to their continuing opposition to Tyran­ have these men returned to U.S. courts. very proud to join with my many col­ I have been told that Taiwanese law leagues who have spoken this week to ny. The brave people of Estonia de­ would not allow the return of these men­ commemorate the 67th Anniversary of serve international recognition today that perhaps, while they would want to the Proclamation of Independence of for their never-ending struggle for lib­ return the two suspects in this case that the Republic of Estonia. erty and emanicaption from Soviet they are restrained from doing so by their February 24, 1985, is a special anni­ control. I join Estonians and Estonian­ own laws. I say to my friends in Taiwan that versary for the courageous people of Americans in the hope that their U.S. law does not allow us to sell arms to a Estonia. On this date 67 years ago, the quest for independence will end in vic­ country when there is a systematic pattern Estonians first cast aside a history of tory, and the Independent Republic of of intimidation or harrassment against U.S. citizens. foreign domination and declared Estonia will again take its deserved And I urge my colleagues in Congress to themselves to be an independent and place among the free nations of the make clear to Taiwan, and others, that autonomous republic. Their celebra­ world.e policy decisions involving foreign assistance tion, however, not to mention their by this country will not be constrained by freedom, was tragically short lived. technicalities when the safety of our citi­ Immediately after independence was CONGRESSIONAL BUDGET ACT zens from terror is involved. declared, the Republic of Estonia was AMENDMENTS OF 1985 Perhaps even more importantly, I am sad­ invaded by the Germans, who occu­ dened by the apparent unwillingness of this pied Estonian territory until the armi­ HON. ANTHONY C. BEILENSON Administration to tell Americans of Asian ancestry what they have a right to hear, stice was finalized in November 1918. OF CALIFORNIA that this nation values their rights and The provisional government then de­ IN THE HOUSE OF REPRESENTATIVES their lives just as highly-no more, no less­ f ended itself from the Bolshevik Thursday, February 21, 1985 as all other citizens. Army, which sought to impose Com­ Mr. Chairman, I have met with Vincent munist theology on the newly liberat­ e Mr. BEILENSON. Mr. Speaker, I Chin's mother. Now I am here with Henry ed Estonians. Adopting the slogan, am reintroducing legislation today Liu's widow. I hope I do not have to make "No Compromise With the Commu­ which would strengthen and improve any similar appearances in the future. nist," the Estonians rallied to over­ the effectiveness of the congressional In closing, Mr. Chairman, let me em­ come the Soviet threat, aided by fi­ budget process. Joining me in sponsor­ phasize my deep concern with the ap­ nancial support and volunteers from ing this proposal are Members of Con­ parent freedom with which agents of England, Finland, Sweden, and Den­ gress who helped develop this bill last the Taiwanese Government have oper­ mark. Congress: Messrs. FROST, BONIOR, HALL ated within our country. To put it In 1920, this perservance was re­ (Of Ohio), PANETTA, GEPHARDT, ASPIN, more bluntly, I am sick and tired of warded, and the Soviet Union re­ MURTHA, DICKS, PENNY, MORRISON (Of seeing foreign agents come to this nounced all rights over Estonia for­ Washington), and MINETA. country, do their dirty work, and then ever. For the next 20 years, this inde­ Our legislation retains the basic run back to their home countries and pendent republic thrived, developing a framework of the Congressional claim protection of that nation's laws. rich national culture, and a prospering Budget Act of 1974, but incorporates Surely acts of violence against U.S. economy while living under a written and builds upon many of the practices citizens on U.S. soil should be wholly constitution with a bill of rights and which have evolved in recent years, in­ within U.S. law. To kill an American free elections. cluding that of adopting just one and then claim the protection of a for­ But this liberty was not to last. In budget resolution each year and using eign nation's laws is behavior that dis­ flagrant violation of the peace treaty reconciliation to make budgetary honors that nation. And, Mr. Chair­ of 1920, the Soviets signed the Molo­ changes in programs which are not an­ man, these are supposedly our friends. tov-Ribbentrop Pact, condemning Es­ nually reviewed. This bill would We sold them $760 million in arms in tonia and its Baltic neighbors, Latvia, strengthen and streamline procedures 1985. and Lithuania. The Soviets forcibly by: expediting the timetable for So Mr. Chairman, I think the time annexed the territory of Estonia in budget-related action; expanding cov­ has come to tell these so-called friends 1940, and subjugated its inhabitants. erage of the budget process-by in­ of ours to take their intelligence oper­ The Soviet annexation not only termi­ cluding off-budget activities and pro­ atives and recall them home. And I nated Estonia's independence, but led viding controls for credit and tax ex­ hope you will join with me, Mr. Chair­ to massive executions and deporta­ penditures; enforcing the budget reso­ man, in asking the new chairman of tions. Many more died defending their lution immediately upon its adoption the Permanent Select Committee on homeland or fleeing Russian tyranny. and focusing enforcement at the com­ Intelligence to begin an intensive in­ And those few who were lucky enough mittee level; and providing for better vestigation of this whole matter. And to escape Soviet horrors had to start a coordination of the process within the furthermore, Mr. Chairman, should new life in other countries with only House of Representatives. you want to introduce legislation the clothes on their backs. The Congressional Budget Act tightening up the Arms Export Con­ The Estonian people, however, Amendments of 1985 are the product trol Act-a goal I know you have refuse to this day to succumb to Soviet of a 2-year review by the Rules Com- 3084 EXTENSIONS OF REMARKS February 21, 1985 mittee Task Force on the Budget Proc­ ous committees involved in the budget After adoption of a budget resolu­ ess, a panel of 24 Members from vari­ process, ways are needed to help re­ tion, each committee with jurisdiciton ous House committees which held 33 solve problems which inevitably arise over a portion of the budget would re­ days of meetings and hearings on the over matters such as proposed new ceive an allocation for discretionary congressional budget process during budget procedures. action covering l, 2, or 3 years. Spend­ the 97th and 98th Congress. The task This legislation is intended to ad­ ing, credit, or revenue legislation re­ force considered several alternatives to dress all of the above-mentioned ported by a committee which breaches the existing budget process, including issues. Below is a summary of the that committee's allocation would be the use of an omnibus budget bill and major provisions of the bill: subject to a point of order. a 2-year budget cycle, before recom­ Furthermore, the use of reconcilia­ mending that Congress build upon and USE OF A SINGLE ANNUAL BUDGET RESOLUTION The practice of adopting one concur­ tion to make changes in entitlements, improve the procedures currently revenues, and other parts of the used. rent resolution on the budget each year would be formally instituted. budget not annually reviewed would The Budget Act amendments recom­ be made a regular part of the process. mended by the task force were intro­ Unlike current practice, however, the budget resolution would be enforced In the House, if a committee which re­ duced as H.R. 5247 on March 27, 1984, ceives a reconciliation directive does and referred to the House Rules and immediately upon its adoption. Con­ gress could adopt a subsequent resolu­ not report legislation accordingly, the Government Operations Committees. House Rules Committee could make in The Rules Committee held hearings tion at any time if there is a need to revise the spring resolution. order an amendment which does fulfill on the bill in May, and ordered it re­ that directive. ported in June. However, we were dis­ ACCELERATED TIMETABLE suaded from seeking further House The schedule for adoption of the EXPANDED COVERAGE action during the 98th Congress be­ budget resolution and budget-related In order to ensure evenhanded cause Senate budget leaders advised us legislation would be accelerated and budget treatment of different forms of that the other body would not consid­ compressed in order to allow Congress Federal support, new requirements er budget process changes prior to the to finish all of its budget work earlier would apply to off-budget Federal November elections. in the year and to eliminate the rou­ agencies and programs, credit pro­ In developing this legislation, our tine use of continuing resolutions. grams, and tax expenditures. task force tried to address several All Federal agencies and programs The President would be required to which are currently off-budget would widely recognized weaknesses and defi­ submit his budget by the first Monday ciencies in our existing process. One be put on budget. The Social Security after January 3. And, he would be re­ trust funds, which are scheduled to go issue is timing: The statutory timeta­ quired to submit the text of legislation ble Congress operates under provides off budget in 1992, would remain on for any new entitlement or revenue budget. Any legislation introduced in too much time for adopting the budget proposals in his budget within 2 weeks resolution in relation to the amount of the House proposing off-budget status after the budget submission. would be referred to the Government time available for acting on appropria­ Congress would be required to adopt tion bills and reconciliation legislation. Operations Committee. the budget resolution by April 15, Direct loan obligations and primary Partly as a result, Congress has had a rather than by May 15. In conjunction growing tendency to rely on continu­ loan guarantee commitments would be with that new deadline, the House included in the budget resolution and ing resolutions, rather than regular would be required to elect its commit­ appropriation bills, to fund large num­ would be subject to the same controls tees within 7 days after January 3, and as direct spending. Credit could be in­ bers of Government programs and, in committees would submit their views some years, has failed to act on recon­ cluded in reconciliation directives. New and estimates reports to the budget credit programs would be controlled ciliation legislation. committees by February 25. A second issue is enforcement: Con­ through the appropriations process. gress waits until fall, after most The current May 15 deadline for re­ The budget resolution would include budget legislation for the applicable porting authorization bills would be a recommended change to the level of fiscal year has been adopted, to apply repealed. However, in order to avoid tax expenditures, separate from the any points or order against spending conflicts with related appropriations recommended change to revenues. or revenue measures which breach bills, authorization bills affecting the Reconciliation could direct a change in budget totals. Furthermore, the coming fiscal year would need to be re­ the level of revenues specifically from ported early enough to be considered changes in tax expenditures. Budget Act's enforcement system does on the floor between the months of not differentiate between committees IMPROVED INSTITUTIONAL COORDINATION which comply with the provisions of February and May. An elastic clause permitting new pro­ budget resolution when acting on their The House Appropriations Commit­ cedures to be included in a budget res­ portion of the budget and those which tee would be required to report all 13 olution would be retained in the do not, which sometimes results in pe­ of its regular appropriations bills by Budget Act, but in the House, in order nalizing one committee for budgetary June 10. The House would be required to ensure the opportunity for review problems for which they are not re­ to consider all 13 appropriation bills as of any such procedures, a budget reso­ sponsible. well as any reconciliation legislation lution containing new procedures Third the budgetary treatment of directed by the budget resolution would be referred to the Rules Com­ differen'.t kinds of Federal support is before adjourning for the Independ­ mittee. And, any new budget proce­ uneven: Spending through the appro­ ence Day district work period; the dures first introduced in the House­ priations process is adequately re­ Senate, by August 15. Senate conference on the budget reso­ viewed but other forms of support­ STENGTHENED CONTROLS lution could be given separate consid­ most notably, off-budget spending, For the first time, controls would be eration when the House considers the credit programs, tax expenditures, and effective immediately upon adoption conference report. spending outside of annual appropria­ of the budget resolution. And, respon­ In order to help resolve any prob­ tions-are not subject to as much scru­ sibility for complying with the provi­ lems that might arise in the course of tiny. As a result, Congress tends to sions of a budget resolution would be implementing the budget resolution, overlook areas where budget savings placed on committees with jurisdiction the Speaker, in consultation with the could be made. over programs included in the budget, minority leader, would appoint a Mem­ And, fourth, because the success of which would result in a stronger bers user group to advise him on such the budget process depends on a great system of enforcement than Congress matters as budgetary scorekeeping deal of coordination among the vari- currently has. rules and practices. February 21, 1985 EXTENSIONS OF REMARKS 3085 Mr. Speaker, it is more important hearing as soon as possible to consider the through tax incentives, subsidies, and than ever before that we establish problems that designer drugs pose for our other means of support which we do stronger and more effective proce­ society. I have discussed this matter with not provide. In the last two decades, dures for acting on the budget. Be­ representatives from the Food and Drug Ad­ ministration and the Justice Department. I Japan has far outspent the United cause of the magnitude of the Federal suggest that the Select Committee consult States as a percentage of gross nation­ deficit, the political problems involved these agencies in an effort to determine how al product-1.7 percent compared to in acting on the budget will be with us we might best assist them in their control 2.3 percent. So far, the high technolo­ for years to come. However, we need efforts. gy industry has been one of the few not compound those difficulties by Best regards. sectors to contribute positively to the continuing to operate under a budget Sincerely, U.S. balance of trade. But if we hope process which is not nearly so effective STAN PARRIS, to maintain this position, we must in­ as it could be. By enacting the very im­ Member of Congress.• crease the level of research and devel­ portant yet relatively simple amend­ opment in this country. ments to the Congressional Budget HIGH TECHNOLOGY RESEARCH As Congress' Office of Technological Act of 1974 outlined above, we will AND SCIENTIFIC EDUCATION Assessment recently observed: give ourselves the tools we need for ACT OF 1985 [Staying] highly competitive in electron­ more effective and responsible deci­ ics and other technologically driven indus­ sionmaking. HON. LES AuCOIN tries with U.S. firms remaining leaders in in­ I urge all of my colleagues to add OF OREGON novation, in international trade, and in sales their support to this effort to improve IN THE HOUSE OF REPRESENTATIVES and profit Cisl necessary if the United our budget process.e States is to maintain its standard of living, Thursday, February 21, 1985 its military security, and if the U.S. econo­ e Mr. AuCOIN. Mr. Speaker, today I my is to provide well-paying and satisfying PARRIS URGES HEARINGS ON am pleased to join my colleagues, Mr. jobs for the Nation's labor force. DESIGNER DRUGS PICKLE and Mr. FRENZEL, and other The way to achieve this is not to members of the Ways and Means counter the protectionist measures of HON. STAN PARRIS Committee, in introducing the High our overseas competitors with protec­ OF VIRGINIA Technology Research and Scientific tionist measures of our own. The way IN THE HOUSE OF REPRESENTATIVES Education Act of 1985. to achieve this is to play to our Thursday, February 21, 1985 This legislation addresses two criti­ strengths, which is what this bill does. •Mr. PARRIS. Mr. Speaker, we face cal needs for sustaining this country's It takes American ingenuity and care­ a new type of drug problem that could technological edge: aggressive research fully targets incentives to spur innova­ have disasterous consequences for our and development and a supply of tion and growth in our industries. society. I am submitting into the workers with the skills and education A second objective of the bill is to RECORD a letter I have sent to the to carry our high-tech industry into make sure that our education system chairman of the House Select Commit­ the future. is responsive to the changing needs of tee on Narcotics Abuse and Control. The bill does this by making the ex­ our industries by encouraging corpora­ The letter follows: isting R&D credit permanent, extend­ tions to work with our universities and ing the credit to start up companies HOUSE OF REPRESENTATIVES, vocational schools. A growing high­ Washington, DC, February 20, 1985. and by encouraging corporations to in­ tech sector can create new products, Hon. CHARLES RANGEL, crease their donations of cash and jobs, and trade opportunities, but Select Committee on Narcotics Abuse and equipment to colleges and universities unless we start putting investments Control, Washington, DC. for basic research and classroom in­ into the classroom, we aren't going to DEAR CHARLIE: As a member of the Select struction in the sciences. have an adequate pool of engineers, Committee on Narcotics Abuse and Control, Innovation is a great American I would like to bring to your attention a scientists and others to draw from. In­ strength and very much admired by stitutions like the research-oriented very serious narcotics problem that has the our foreign competitors. But it can't potential of becoming a national catastro­ Oregon Graduate Center in Beaverton phe if the federal government does not act be taken for granted. I represent a dis­ can act as an "educational anchor" for swiftly. trict in Oregon which is fast becoming high technology firms and supply a I have been informed that the national a hub of high-tech activity. In fact, skilled and educated workforce to Centers for Disease Control is investigating the Office of Technology Assessment meet their needs. modifications being made to mind-altering has estimated that the Sunset Corri­ chemicals that make them difficult to iden­ dor area in Washington County ranks It is both appropriate and necessary tify and give them dangerous side effects, the sixth most desirable area in the to support increased R&D. But it is such as paralysis or death. These substances country for high-tech development. not just for the benefit of the high­ are being referred to as "designer drugs" tech industry. Technological innova­ and have caused numerous deaths, mostly High-tech firms in my State of Oregon have told me that the continuation of tions developed in the high-tech sector in the San Francisco Bay area. Neither the can help furnish other, more tradi­ drug users nor the enforcement agents are this credit is vital to their industry for equipped to recognize these drugs on the a number of reasons. tional industries with the means to street. These firms, like all high-tech com­ sustain or regain their own interna­ Some experts are reporting that one of panies, operate in the vanguard of in­ tional competiveness. the problems with these substances is that novation. For them, innovation is a Mr. Speaker, after the R&D tax current surveillance programs for street condition of survival. It is, in fact, credits were authorized by Congress in drugs will not detect many "designer drugs". what they sell and the R&D tax cred­ 1981, corporate investments in re­ One reason for this may be that there is a search and development went up 40 lag between the development of expertise of its provide a sound foundation for risk street drug surveillance and the chemists. investment in new products and tech­ percent. In 1982, they increased 38 The people creating these substances are nologies. We need a permanent credit percent. Those are dramatic increases making molecules faster than we are able to to create a stable incentive for busi­ for 2 recession years. And, I believe we develop the means to detect them. These nesses considering R&D investments. can do even better. black market chemists can alter the color The research incentives in this bill This legislation is the centerpiece of and consistency of the drugs, in an effort to are also critical in helping these com­ a bipartisan, coordinated effort in keep them from being detected, and there is reason to believe the drugs are becoming panies remain competitive in the face Congress to help our Nation maintain more widespread. of increasing challenges from our trad­ its technological edge. I urge every I am requesting that the Select Commit­ ing partners. Countries like Japan are Member of Congress to join us in this tee on Narcotics Abuse and Control hold a eating away at our technological lead effort.e 3086 EXTENSIONS OF REMARKS February 21, 1985 THE JOB CORPS AND THE cation, either high school or postsec­ ment, lost salaries, rehiring and train­ OPPORTUNITY SOCIETY ondary. And the budget omits any ref­ ing, and insurance and disability erence to the approximately 25 per­ claims. HON. EDWARD F. FEIGHAN cent of participants who enter the The American Heart Association, be­ OF OHIO armed services, many of whom would cause of the magnitude of this prob­ IN THE HOUSE OF REPRESENTATIVES not have been able to meet some of lem, commits a major portion of its re­ the entrance requirements for the sources to the funding of research Thursday, February 21, 1985 military without their Job Corps train­ grants. This longstanding commitment e Mr. FEIGHAN. Mr. Speaker, the ing. by the AHA to research, in conjunc­ President has repeatedly exhorted all The Job Corps Center in my own tion with the efforts of the National of us to help make America a genuine home area of Cleveland, OH, provides Heart, Lung and Blood Institute opportunity society-a society in an important employment training re­ CNHLBIJ, has contributed to remarka­ which any individual who applies him­ source in a part of the country where ble declines in the death rates from self can find a job. The ideal of equal the unemployment rate remains sig­ cardiovascular disease-since 1968, the opportunity is certainly a noble one, nificantly above the national average. death rate from coronary heart dis­ and one which should bear no partisan At a cost of approximately $5 million ease has declined by 33 percent and reservations. Unfortunately, while the per year, the Cleveland Job Corps the death rate from stroke has plum­ President's rhetoric exhalts employ­ Center supports 530 training slots, and meted by 46 percent. ment opportunity, his concrete poli­ helps more than 850 young people Unfortunately, cardiovascular dis­ cies would deny such opportunity to each year. Many of the trainees learn ease remains this Nation's leading many of our Nation's disadvantaged skills, such as bricklaying, tilesetting, cause of death-almost as many people youth. and masonry, that prepare them to will die from heart disease in 1985 as In order to compete in the job work in the building trades. Herman from cancer, accidents and all other market, citizens must possess useful Padigutti and Orlando Balotta of the causes of death combined. There is skills. Training programs that genu­ Cement Mason's Local No. 404 have evidence, however, that the potential inely equip young people with market­ been particularly successful in recruit­ exists for the achievement of further able abilities are among the soundest ing Job Corps graduates for their reductions in cardiovascular death investments we can make in the union's apprenticeship programs. Mr. rates in the next decade. Exciting new health of our economy and in the sta­ Padigutti and Mr. Balotta, as well as research areas in cardiovascular dis­ bility of our society. Yet since fiscal many other building trades unionists, ease will pave the way for these reduc­ year 1980, funding under the Jobs have helped make the Job Corps in tions to occur: The application of ad­ Training Partnership Act and its pred­ Cleveland a true community resource. vances in cellular and molecular biol­ ecessor, the Comprehensive Employ­ As we grapple with the task of cut­ ogy to the study of arteriosclerosis and ment and Training Act CCETAJ, has ting the massive Federal budget defi­ hypertension; research in the relation­ been slashed 65 percent. The Presi­ cit, we must be hardnosed in looking ship of nutrition to cardiovascular dis­ dent has repeatedly called for the for programs to trim. But we must also ease; study of the effects of behavior, elimination of the Work Incentive be wise enough to recognize programs stress and exercise on cardiovascular Program that provides job services, that more than pay for themselves by patients; and new educational efforts training, and public service employ­ promoting economic vitality and social in the area of hypertension, cholester­ ment to recipients of aid to families well-being. The Job Corps is such a ol, and smoking aimed at the general with dependent children. In his fiscal program. It should continue to play an public are just a few areas being pur­ year 1986 budget proposal, the Presi­ important part in building the oppor­ sued by both the American Heart As­ dent has requested the elimination of tunity that we all cherish.• sociation and the NHLBI at this time. another important training program, In declaring February as American the Job Corps. All of these programs, Heart Month, we recognize the need to notably the Job Corps, are aimed at AMERICAN HEART MONTH continue to fight against cardiovascu­ providing employment opportunities­ lar disease and we urge all Americans not opportunities glibly declared in HON. STENY H. HOYER to continue to support scientific en­ speeches, but real opportunities OF MARYLAND deavors dedicated to this goal.e grounded in productive skills-for IN THE HOUSE OF REPRESENTATIVES those least able to gain such opportu­ nity on their own. Thursday, February 21, 1985 U.S. POLICY TOWARD Approximately 78,000 disadvantaged •Mr. HOYER. Mr. Speaker, cardio­ NICARAGUA young people between the ages of 16 vascular disease is this Nation's lead­ and 21 participate in training pro­ ing killer. Every year since 1963 Con­ HON. LEE H. HAMILTON grams at 107 Job Corps centers across gress, by joint resolution, and the OF INDIANA the country. Many of these youths are President have declared February as IN THE HOUSE OF REPRESENTATIVES school dropouts. They form a group American Heart Month. This allows us with one of the highest unemploy­ an opportunity to provide special rec­ Thursday, February 21, 1985 ment rates in our society. While the ognition to the American Heart Asso­ e Mr. HAMILTON. Mr. Speaker, on overall unemployment rate stood at ciation's contribution in the areas of December 20, 1984, I initiated a corre­ 7.4 percent in January, the rate among cardiovascular research, public and spondence with Secretary of State 16- to 19-year-olds remained a stagger­ professional education and community Shultz concerning U.S. policy toward ing 18.9 percent. programs. Nicaragua, seeking a clarification of Although the Reagan administration Over 42 million Americans have one our goals there and the means we seek claims that the Job Corps has an un­ or more forms of cardiovascular dis­ to achieve them. The material from acceptably low success rate, the fig­ ease. Of the 1.5 million individuals Ambassador Harry W. Shlaudeman to ures the administration uses to bolster that will have heart attacks in 1985, which Secretary Shultz refers in his this claim are, to be generous, approximately 550,000 of these indi­ February 6, 1985, reply has largely strained. The President's budget pro­ viduals will die. High blood pressure been made public already in a resource posal states that only 35 percent of afflicts an estimated 37 million adults. book, "The Contadora Process," avail­ Job Corps trainees end up getting And 500,000 individuals will suffer a able from the Department of State jobs. Yet the budget neglects to men­ stroke in 1985. The total economic cost and therefore it is not submitted here. tion the approximately 15 percent of of cardiovascular disease in 1985 will The correspondence with Secretary participants who go on to further edu- reach $72 billion for medical treat- Shultz follows: February 21, 1985 EXTENSIONS OF REMARKS 3087 COMMITTEE ON FOREIGN AFFAIRS, questions about U.S. policy in Central would seize their neighbors' territory. Those HOUSE OF REPRESENTATIVES, America. You will find our answers detailed who impute this concern to us do so genera­ Washington, DC, December 20, 1984. in the enclosed memorandum. In addition, ly as a means of attempting to portray our Hon. GEORGE P. SHULTZ, Ambassador Harry Shlaudeman, the Presi­ apprehensions-and hence our reaction-as Secretary, Department of State, Washington, dent's Special Envoy to the region, has re­ exaggerated. The Sandinistas are less likely DC. plied directly to your questions relating to to take overt actions which would obviously DEAR MR. SECRETARY: I write concerning the current status of both the Contadora trigger the Rio Treaty or other internation­ United States policy toward Nicaragua process and the bilateral dialogue with Nica­ al agreements, than they are to employ the which has been the subject of conflicting ragua. entire range of unconventional forms of ag­ statements in recent days. The issues you raise have a fundamental gression, carefully designed to conceal their I would appreciate your specific answers bearing on the present policy dilemma in support for revolutionary and terrorist ac­ to each of the following questions: Central America. I hope that in the days tivities in other countries. Can the United States accept the present ahead we can work together to provide the 7. Is it the view of the Administration that government in Nicaragua? President with the tools necessary for ac­ the Government of Nicaragua today has ex­ If the U.S. cannot, what changes does the complishing our national objectives in this pansionist aims? If so, against whom? U.S. seek? Do those changes involve individ­ important region. See above. uals and/or policies? Sincerely yours, 8. If the behavior of the Nicaraguan gov­ Are the changes we seek mainly in foreign GEORGE P. SHULTZ. ernment does not change, what policies policy? What specific domestic policy Enclosure: As stated. toward it does the Adininistration intend to changes do we seek? ANSWERS TO SPECIFIC QUESTIONS RAISED BY pursue? Is it your belief that the desired policy REPRESENTATIVE HAMILTON IN HIS LETTER OF Our opposition to hidden forms of aggres­ changes can be brought about by the cur­ DECEMBER 20 sion must be as clear and unequivocal as it is rent leadership in Nicaragua? 1. Can the United States accept the to conventional aggression. We must not Is it your judgment that a change in the have separate responses from the Adminis­ Government of Nicaragua is a prerequisite present government in Nicaragua? to the achievement of U.S. policy goals? An authoritative answer is contained in tration and from Congress. A division on Is it your belief that the Government in the President's letter to Senator Baker of this critical issue will encourage additional Nicaragua today is exporting revolution? If April 4, 1984: "The United States does not adventurism on the part of the Sandinistas so, what is your evidence? seek to destabilize or overthrow the Govern­ and their Soviet and Cuban patrons. Is it the view of the Administration that ment of Nicaragua; nor to impose or compel This issue is particularly important be­ the Government of Nicaragua today has ex­ any particular form of government there." cause recent years record a decline in the in­ pansionist aims? If so, against whom? 2. If the U.S. cannot, what changes does cidence of conventional warfare and an in­ If the behavior of the Nicaraguan govern­ the U.S. seek? Do those changes involve in­ crease in the number of challenges mounted ment does not change, what policies toward dividuals and/or policies? in the gray area of unconventional warfare. it does the Administration intend to pursue? As noted above, we do not seek to over­ The Congress of the United States clearly Is U.S. political support, and the hope of throw the current government; nor do we does not intend for this country to disarm renewed funding, for the Contras still the seek to replace individual members of that itself unilaterally in this arena. Yet, we centerpiece of U.S. policy toward Nicara­ government. What we seek are changes in have not reached a national consensus on gua? What U.S. policy objectives do you Nicaraguan government behavior, as dis­ the appropriate response. expect the Contras to help you achieve? cussed in the following responses. If we do not develop an effective response Short of the direct application of U.S. 3. Are the changes we seek mainly in for­ to the Sandinistas, we shall pay a terrible military force, how can a policy of pressure eign policy? What specific domestic policy long-term price. It seeins obvious that any against the Nicaraguan government succeed changes do we seek? response must include conventional ele­ if its leadership is convinced that the U.S. The changes we seek in the behavior of ments such as intense diplomatic activity, seeks its overthrow? What inducements the Nicaraguan government are as follows: support for constitutional democracy, and exist for moderate Nicaraguan policies if <1 > An end to Nicaraguan support for guer­ elements of security assistance. Moreover, the Nicaraguans believe the U.S. seeks to rilla groups that operate in other countries; for this response to be effective, we must undermine their government? <2> Severance of Nicaraguan Inilitary and se­ not rule out support to groups that resist What is the status of U.S. bilateral negoti­ curity ties to CUba and the Soviet Bloc; <3> domination by totalitarian regimes, especial­ ation with Nicaragua? What are the princi­ Reduction of Nicaragua's Inilitary strength ly when support to such groups serves as an pal issues? What are the respective U.S. and to levels that would restore Inilitary equilib­ appropriate response to unconventional ag­ Nicaraguan positions on those issues? What rium in the area; and <4> Fulfillment of the gression. progress can you note? Does the United original Sandinista promise to support We must reinforce active negotiations States seek a bilateral agreement with Nica­ democratic pluralism within Nicaragua. with the pressure needed to ensure their ragua? If so, what elements would you 4. Is it your belief that the desired policy success. Our goals, set out in the answer to expect in such an agreement? changes can be brought about by the cur­ question No. 3, are not in dispute. What is U.S. policy toward the Contadora rent leadership in Nicaragua? 9. Is U.S. political support, and the hope peace treaty proposal and what does the The ultimate answer to this question must of renewed funding, for the Contras still the U.S. see as the Nicaraguan policy toward come from the government and people of centerpiece of U.S. policy toward Nicara­ the proposal? What kind of verification pro­ Nicaragua. Our direct dialogue with the gov­ gua? What U.S. policy objectives do you cedures do we seek? Is verification possible ernment of Nicaragua and our support for expect the Contras to help you achieve? under present circumstances? Is U.S. sup­ the Contadora process, in which Nicaragua U.S. support for the Nicaraguan armed port for any treaty proposal contingent on is a participant, are predicated on an affirm­ opposition is not, nor has it been, the "cen­ effective treaty verification? ative assumption. terpiece" of Administration policy toward Is it your judgment that an econoinic em­ 5. Is it your judgment that a change in the Nicaragua. Our policy is a multifaceted one, bargo or the breaking of diplomatic rela­ Government of Nicaragua is a prerequisite aimed at meeting the objectives cited in the tions with Nicaragua would further U.S. to the achievement of U.S. policy goals? answer to question No. 3 above. We are pur­ aims, or would serve to drive the Sandinista See above. suing these objectives through a variety of government further into the arms of the 6. Is it your belief that the Government of means. These include conventional diplo­ Eastern bloc? Nicaragua today is exporting revolution? If matic channels, e.g., our close support for I appreciate your prompt consideration of so, what is your evidence? the Contadora process and our direct dia­ these questions and hope your answers will The evidence that Nicaragua is actively logue with Nicaragua; econoinic and politi­ help clarify U.S. policy toward Nicaragua. supporting guerrilla movements and other cal pressures aimed at convincing the gov­ Sincerely yours, forms of violence in several other Central ernment of Nicaragua that its aggressive LEE H. HAMILTON, American countries is ample and conclusive. and destabilizing behavior carries a price; Chairman, Subcommittee on Europe Much of the evidence for this has been pro­ and support for strengthened democratic in­ and the Middle East. vided to the House Permanent Select Com­ stitutions, equitable econoinic development Inittee on Intelligence; more will be offered and increased security in the friendly na­ THE SECRETARY OF STATE, in the coming year. This evidence, however, tions of the region threatened by Nicaragua. Washington, February 6, 1985. cannot be evaluated only in terms of the Regarding the relationship between U.S. Hon. LEE H. HAMILTON, historical context of conventional warfare. policy objectives and the armed opposition, Chairman, Select Committee on Intelli­ Despite their unmistakable militarization we note that the negotiating progress has gence, House of Representatives. and belligerency, it is not our contention occurred only when the Sandinistas faced DEAR MR. CHAIRMAN: Your letter of De­ that the Sandinistas are about to engage in pressure from the armed resistance. To end cember 20, 1984 raises several provocative conventional aggression in which they this pressure before Nicaragua has entered 3088 EXTENSIONS OF REMARKS February 21, 1985 into a comprehensive and verifiable agree­ tions in the system to be consolidated eral land banks had $54. 7 billion in ment would seriously undercut the negotiat­ into a single bank controlled by the assets; the Federal intermediate credit ing process, making further progress virtu­ FCA and has for the past year been ally impossible to achieve. banks had $20.5 billion in assets; and 10. Short of the direct application of U.S. pursuing policies designed to achieve the banks for cooperatives had $10.5 military force, how can a policy of pressure that end. Consequently, I am today in­ billion in assets. against the Nicaraguan government succeed troducing legislation that will restore Up until now, the Federal land if its leadership is convinced that the U.S. local control to Federal land banks, banks, the Federal intermediate credit seeks its overthrow? What inducements Federal intermediate credit banks, and banks, and the banks for cooperatives exist for moderate Nicaraguan policies if banks for cooperatives. have been run separately, as Congress the Nicaraguans believe the U.S. seeks to The Farm Credit Administration is intended, by boards of directors that undermine their government? concerned about the precarious finan­ In the first place, the premise that the were responsive to the wishes of the Sandinistas are governed in their policy de­ cial situation of some system banks. stockholders of each bank, respective­ cisions by the perception that we seek their That concern is shared by all the 37 ly. overthrow is open to serious question. These system institutions, and they have Recently, however, possibly lured by charges, like the periodic Sandinista warn­ made provision in a formal agreement power over the large sums of money, ings of imminent U.S. invasion, must be among themselves for coming to the efforts have been made to force ac­ seen, in large part, as a propaganda device. aid of troubled banks within the In any event, our disavowal of any intention tions by the local banks that contra­ system. vene the wishes of the individual to overthrow the Sandinistas or invade In December the FCA engineered a Nicaragua has been expressed repeatedly in bank's stockholders. For example, in public and privately to the Government of bailout of a bank in the Spokane dis­ the State of Texas, which constitutes Nicaragua. trict that ignored the system's own the 10th Farm Credit District, actions More to the point, we are convinced, based agreement and bypassed the use of a were taken to force the three congres­ on long and frustrating experience with the congressionally appropriated discre­ sionally separate banks in the dis­ Sandinistas in the early years of their rule, tionary fund that was available to trict-the Federal land bank, the Fed­ that our current policy, with its elements of cover the Spokane failures. The FCA's pressure, is the only one that has any eral intermediate credit bank, and the bailout does not require repayment of bank for cooperatives-to have a single chance of influencing the Sandinistas to the moneys transferred into Spokane, abandon their destabilizing and repressive management so that the banks are behavior and take the positive steps out­ and it does not comport with sound only separate on paper. This directly lined in the answer to question No. 3 above. banking practices. contravenes the expressed vote of the 11. What is the status of U.S. bilateral ne­ The FCA's short-term goal-sustain­ stcckholders who, at three consecutive gotiations with Nicaragua? What are the ing the solvency of a member bank-is yearly meetings of the Federal Land principal issues? What are the respective one that we all share. However, their U.S. and Nicaraguan positions on those Bank Associations of Texas, voted avowed goal of creating a single, Fed­ against this single management. issues? What progress can you note? Does eral farm credit bank by 1995 is one the United States seek a bilateral agreement that is a sharp departure from 70 How could the stockholders of the with Nicaragua? If so, what elements would Federal Land Bank of Texas, with $2. 7 you expect in such an agreement? years of successful experience, whose foundation was the idea that credit de­ billion in assets, lose control over their Material provided by Ambassador Shlau­ bank? How could Congress' will be so deman. cisions were safest when made at the 12. What is U.S. policy toward the Conta­ local level. thwarted? dora peace treaty proposal and what does The Federal land banks, created in The answer lies in the fact that the U.S. see as the Nicaraguan policy 1916 by Congress to provide for the today-unlike the past-those running toward the proposal? What kind of verifica­ credit needs of American agriculture the Farm Credit Administration and tion procedures do we seek? Is verification through local farmer- and rancher­ those on the district boards are using possible under present circumstances? Is loosely drafted sections of the Farm U.S. support for any treaty proposal contin­ owned and managed institutions, have gent on effective treaty verification? served us well. Credit Act in ways I do not believe Material provided by Ambassador Shlau­ Congress over the years added the Congress ever intended. First, in sec­ deman. Federal intermediate credit banks-to tion 5 of the Farm Credit Act, Con­ 13. Is it your judgment that an economic serve shorter term credit needs-to be gress failed to provide representation embargo or the breaking of diplomatic rela­ owned by farmer- and rancher-operat­ on the district boards of directors pro­ tions with Nicaragua would further U.S. ed production credit associations, and portional to either the assets or the aims, or would serve to drive the Sandinista the banks for cooperatives-to serve membership of the respective three government further into the arms of the banking entities, thus allowing direc­ Eastern bloc? the credit needs of local cooperatives. It would be inappropriate to comment on Congress again provided for local own­ tors not elected by the stockholders of hypothetical policy alternatives in this com­ ership and control of these separately a bank to outvote the stockholders' munication. In any event it would not be ac­ created entities. representatives. That is what hap­ curate to describe the close relationship be­ To provide for coordination of agri­ pened in Texas where, by a vote of 5 tween the Sandinistas and the Eastern bloc cultural credit activities, Congress cre­ to 2, the two directors elected by the as one into which the former have been ated local farm credit district boards stockholders of the Federal Land driven.e of directors, to be elected by the stock­ Bank of Texas were outvoted as to holders of the separate banking insti­ who would run the Federal Land Bank FARM CREDIT PRIVATE OWNER­ tutions in each local district, with one of Texas. Second, the Congress in SHIP RESTORATION ACT OF member appointed by the Oovernor­ giving the Farm Credit Administration 1985 an official of the Farm Credit Admin­ regulatory and supervisory powers, istration. The Farm Credit Adminis­ failed to spell out the statutory stand­ HON. SAM 8. HALL, JR. tration itself was created as a regula­ ards for the exercise of that agency tory and examination agency. power. The misuse of the power to OF TEXAS force the local banks in the system to IN THE HOUSE OF REPRESENTATIVES Today, these stockholder-owned banking institutions pay out of their take actions contrary to the wishes of Thursday, February 21, 1985 earnings the full cost of the Farm their stockholders-which wishes are e Mr. SAM B. HALL, JR. Mr. Speak­ Credit Administration, so that the fully consistent with congressional en­ er, the Farm Credit Administration is U.S. Treasury has no net outlay even actments-is, unfortunately, rampant. using the Nation's farm credit crisis to for the regulators. To remedy this situation and to gain control of the private banks in As of the end of June 30, 1984, ac­ make certain that hereafter the Feder­ the farm credit system. The FCA ap­ cording to the financial statements of al land banks, the Federal intermedi­ parently wants the 37 banking institu- these privately owned banks, the Fed- ate credit banks, and the banks for co- February 21, 1985 EXTENSIONS OF REMARKS 3089 operatives are responsive to their re­ agement of the three separate banking enti­ Under this subsection, the newly created spective stockholders, and that the ties within a district of the Farm Credit board of each of the three separate banking Federal regulators in the Farm Credit System, while permitting the adoption of entities created by Congress in each district Administration employ their authority single management within a farm credit dis­ of the Farm Credit System would be com­ only as Congress intended, this bill trict if the stockholders of each of the three posed of five members, four to be elected by separate banking entities of that district the stockholders of each entity and the makes several modifications in the wish to adopt such management; and <3> to fifth to be appointed by the Governor with Farm Credit Act of 1971, as amended. maintain the Farm Credit Adminstration's the advice and consent of the Federal Farm In general, the bill provides for: One, oversight responsibilities, while providing Credit Board. Three of the elected board separate boards of directors for each standards to guide the exercise of its au­ members for each bank would be the same of the three banking entities in each thority in order to safeguard against arbi­ people elected to serve on the Farm Credit district, to be elected solely by the re­ trary action by the Farm Credit Administra­ District Board by the stockholders of that spective stockholders of each bank tion. bank, and the fourth elected member would Section 1 provides a short name of the serve only on that entity's board. This separately-with the Governor con­ Act: "Farm Credit Private Control Restora­ tinuing to appoint one member of tion Act of 1985." changes the present law, under which each each bank's board; two, continuation Section 2 applies to Federal land banks member of a Farm Credit District board of and provides for, and vests power in, a sepa­ directors serves simultaneously as a director of enlarged farm credit district boards for the Federal land bank, the Federal in­ to provide guidance and coordination; rate board of directors for each bank. The section limits the Farm Credit Administra­ termediate credit bank, and the bank for co­ and three, statutory guidance as to tion's authority to prohibit a bank from ex­ operatives in the district, whether or not how the Farm Credit Administration ercising powers granted to it by Congress, that director was elected by the stockhold­ is to exercise its supervisory powers, restricts the Farm Credit Administration's ers of that bank. Under present law the particularly as to dividends, salaries, authority over charters, organization certifi­ members of a Farm Credit District Board bylaws and charters. cates and by-laws to a review function, with who are not elected, for example, by the These modifications will leave intact authority to require modification or amend­ Federal land bank's stockholders in that dis­ the basic congressional structure of ment only by reference to the standards in trict can nevertheless form a majority of newly amended section 5.18 and only if the that Federal land bank's board. The same is the farm credit system, but make it FCA can carry the burden of establishing true of the boards of the federal intermedi­ more responsive to the needs and that such modification or amendment is ate credit banks and the banks for coopera­ wishes of its owners, the farmers and necessary to make the charter or organiza­ tives. The failure of the present law to pro­ ranchers who are our constituents and tion certificate consistent with the statutory vide representation proportional to the who serve all of our country with their provisions of the Farm Credit Act, as stockholders' interests is remedied in this vast agricultural production. Let me amended. Act by having an individual board of direc­ assure everyone that no modification Section 3 applies to Federal intermediate tors for each bank, elected by the stockhold­ credit banks and makes the same changes ers of each bank respectively (with the Gov­ mandated by this act will force the for those banks as Section 2 does for Feder­ ernor appointing the only other member of local banks in a district to adopt, for al land banks. each bank's board). example, either separate management Section 4 applies to district banks for co­ Directors must meet the same eligibility or joint management; the modifica­ operatives and makes the same changes for requirements as Farm Credit District Board tions of this act will simply ensure those banks as Section 2 and 3 make for the members and are to be elected or appointed that the decision is made by the stock­ Federal land banks and the Federal inter­ by the same processes and for the same holders of each of the individual insti­ mediate credit banks. The slight difference terms, and are eligible for the same compen­ tutions involved. in the organization of this Section is neces­ sation, provided that a bank director may sary in order to leave unaffected the Cen­ not receive additional compensation or ex­ We in successive Congresses have be­ tral Bank for Cooperatives, which already lieved in locally controlled private penses for a day of meetings or travel if has a separate board of directors. such a day of meetings or travel coincides banks as the means of providing agri­ Section 5 substantially alters present sec­ with a day of meetings or travel for Farm cultural credit. We in this country tion 5 of the Farm Credit Act by expanding Credit District Board business, and the have believed in one man, one vote. the District Boards to eleven members but member is already eligible for compensation This act restores representative de­ providing an advisory role only, by provid­ or expenses from the Farm Credit District mocracy to the farm credit system. ing for the election of each bank's elected Board. The provisions for the selection and board members only by the stockholders of terms of officers are also like those applica­ I commend to your attention the fol­ that bank increases the size of each Subsection sets forth the powers that This bill amends the Farm Credit Act of Farm Credit District Board from seven to Farm Credit District boards of directors 1971 to achieve greater efficiency and fiscal eleven. would possess. These powers would be co­ responsibility by creating a separate board Subsection provides for the election of ordination of joint undertakings authorized of directors for each Federal land bank, three District Board members by each of by the respective boards of directors of Federal intermediate credit bank and bank the three sets of stockholders of the three Farm Credit System banks, advice with re­ for cooperatives. The elected directors of separate banking entities in such district spect to operational and administrative effi­ each bank board will be elected solely by limits the power of the holders and others entitled to vote>. It re­ anty fund for the bank for cooperatives in Farm Credit Administration to require tains expanded District Boards in an adviso­ such district), with the Governor of the modifications to the Federal charters, orga­ ry capacity. system appointing the tenth and eleventh nization certificates and by-laws of System This restructuring, and the amendments members. institutions, to ensuring their consistency putting reasonable constraints on the power Subsection Cc> provides for the composi­ with the statutory provisions of the Farm of the Farm Credit Adminstration, are de­ tion of the separate System bank boards Credit Act of 1971, as amended. This subsec­ signed to accomplish three purposes: <1 > to created by this Act; for the selection, terms tion also limits the power of the Farm restore responsibility and control to the pri­ and compensation of directors on those Credit Administration to regulate the com­ vate stockholders of the three separate boards and the selection and terms of offi­ pensation of the chief executive officers of banking entities in each district created by cers; and for a restriction on the powers of System institutions and the salaries of em­ Congress for the Farm Credit System, while Farm Credit District Boards to those powers ployees of such institutions, by allowing the maintaining adequate regulation and exami­ enumerated in Subsection of the Farm Credit Act of compensation or salaries exceeds by more istration; <2> to prevent forced single man- 1971). than 25 percent the highest compensation 3090 EXTENSIONS OF REMARKS February 21, 1985 or salary previously adopted by a system Mr. Speaker, at a time when the Credit risk is determined not by who bank. United States is being closed out of so lends, but by who borrows; the fact Section 6 sets forth transition provisions many foreign trade markets by compe­ that the Government can lend at the for establishing interim boards and officers to act until the directorships created by this tition, I cannot reason why we have risk-free Treasury rate does not Act are filled, and for the selection of indi­ American laws which hinder our com­ change the fact the lending involves viduals to fill those directorships. An inter­ petitive nature even further. We will risk. When the Government lends to im Farm Credit District Board in each dis­ permit American fish processors to risky borrowers, taxpayers must bear trict will be composed of the former Farm compete in the international market­ those risks without compensation. Credit District Board members and officers place by simply amending this law. I The cost of Government-provided of that district and will have the authority respectfully ask my colleagues to fa­ credit is the cliff erence between what of the full board, as changed by this Act. An vorably consider this legislation. interim board for each System bank will be borrowers pay under a Government composed of the two former Farm Credit Thank you.e program-that is, with assistance-and District Board members previously elected what they would have to pay in pri­ by such bank's stockholders and of the THE MARKET PLAN vate capital markets-without govern­ former Farm Credit District Board member ment assistance, and it is this cost that appointed by the Governor in that district; should be recorded in the budget. each such interim board shall have the au­ HON. WILLIS D. GRADISON, JR. thority of the full board created for each OF OHIO The market plan does this by requir­ bank by this Act. Officers for interim IN THE HOUSE OF REPRESENTATIVES ing that direct loans be offered for System bank boards may be selected as nec­ sale to private investors-without re­ essary. A quorum of any interim board shall Thursday, February 21, 1985 course to the Government-and that be a majority of its members. The director­ e Mr. GRADISON. Mr. Speaker, the reinsurance for loan guarantees be ships created by this Act shall be filled ac­ budget of the Federal Government purchased from private insurers. For cording to the election and appointment provisions for Farm Credit District Board ought to include all programs of the direct loans, under the market plan, members as set out in the Farm Credit Act Government and accurately reflect agency budget accounts will show of 1971, as amended. The nomination proc­ their costs. Unfortunately, it does nei­ lending net of sales rather than the ess for elected directors shall commence not ther. Under current budget accounting current practice of recording lending later than thirty days after the date of en­ practice, the cost of Federal credit pro­ "net of repayments." For loan guaran­ actment of this Act and the appointment of grams goes unrecognized. tees, agency accounts will show the appointed directors shall take place not In the 98th Congress, Senator PAUL costs of purchasing private reinsur­ later than ninety days after date of enact­ TRIBLE and I introduced a bill-based ance instead of the current procedure ment. This section also provides that the 1 two new directors on each System bank on a comprehensive CBO study -and of recording only defaults. board shall draw between themselves for a dubbed the "market plan" which To protect against loan and guaran­ term of two years or of three years in order would have corrected the budget ac­ tee markets which are too thin or to create a staggering of directorships on counting treatment of Federal credit poorly developed, the market plan re­ System bank boards.• programs. quires the Government, through the Today, along with Mr. BROWN of Federal Financing Bank CFFBl, to Colorado, Mr. HENRY, Mr. SENSENBREN­ enter a bid in each loan and guarantee AMENDING THE FOREIGN NER, Mr. HUGHES, Mr. IRELAND, and Mr. TRADE-ZONE ACT auction. In addition, in order to dis­ FISH, I am introducing a revised courage unreasonable bids by the market plan bill. Fundamentally, the FFB, the legislation requires the FFB HON. CECIL (CEC) HEFfEL new market plan corrects the flaws­ to maintain a balance between its OF HAWAII identified by CBO and others-in the assets and liabilities. IN THE HOUSE OF REPRESENTATIVES current budget accounting system. It The market plan shifts the risk of does so by forcing the budget and the Thursday, February 21, 1985 credit programs from the Govern­ Congress to recognize the true cost of ment-that is, taxpayers-to investors e Mr. HEFTEL of Hawaii. Mr. Speak­ direct loans and guarantees prior to whose primary business is making er, today I am introducing legislation the commitments to provide this as­ judgments about risk. The difference to amend the Foreign Trade-Zone Act sistance; that is, when costs are still is that, under the market plan, these to permit the landing of U.S.-caught under congressional control. costs would for the first time be identi­ fish by foreign-flag vessels in Hawaii At present, the cost of direct loans is fied. for shoreside processing. It is impor­ recorded in the budget as disburse­ tant to note two aspects of this legisla­ ments less repayments. This is equiva­ In addition, the market plan pro­ tion. First, the amendment applies lent to a bank recording its annual duces major benefits above and only to Hawaii, due to our unique geo­ earnings on a mortgage loan as loan beyond correcting the flaws in the cur­ graphical location and the difficulty in disbursements less repayments. This rent budget system: getting U.S.-caught fish in the Pacific would show big costs in the first year First, the market plan reduces the to port in time for processing. This the loan was made and big profits in deficit through 1989 by $21 billion. legislation would permit American fish the second; both results are wrong. This gain is not magic or legerdemain; processors to be more competitive with The fact is, net lending reveals noth­ according to CBO it is a real reduction those in the Far East and other areas ing about the costs of a loan. against the budget baseline and re­ of the Pacific Basin. The budget accounting treatment of sults, essentially, from trading future Another aspect of this legislation is Government loan guarantees is worse loan repayments-current practice­ that it provides job opportunities in still because they are recorded as for loan sale receipts-market plan. Hawaii now limited by the constraints having a cost of zero-until a defa ult Second, by incorporating the true of the Foreign Trade-Zone Act. Under occurs. The undesirable result is that costs of credit programs, the market foreign trade-zone status, these proc­ loan guarantee programs appear cost­ plan achieves the elusive "level play­ essed fish must be re-exported. There­ less, until it is too late to do anything ing field" for all Federal programs, fore, there should be no opposition but pay the bill-$4.7 billion in 1983. credit and noncredit. Except for set­ from local fishermen since domestic This is an unnecessary deficiency. ting credit volume caps, it would essen­ competition is not a factor. In addi­ There is a practical way of determin­ tially eliminate the need for a separate tion, fishing is such a weak industry in ing the true costs of credit programs. credit budget. Hawaii that we import approximately Third, the market plan places all 60 percent of our domestic fish con­ 1 New approaches to the budgetary treatment of credit activity in the unified budget­ sumption. Federal credit assistance, CBO, March 1984. currently, most direct loans are off February 21, 1985 EXTENSIONS OF REMARKS 3091 budget, and most off-budget spending Look at South Africa. The seeds for The ultimate goal is to restore to the is credit related. a holocaust are germinating in the Nation a minimum drinking age of 21. Finally, it is important to note what pass laws, black spot policy, antimisce­ I gave some thought to placing this the market plan does not do: genation codes, and the homelands age in the legislation, but upon reflec­ The market plan does not change policy. These are steps toward some­ tion I concluded that would be unfair. the terms of any credit program; agen­ thing, and that something is the abso­ Just as some State legislatures now cies would continue to select benefici­ lute subjugation of blacks in their complain they are being asked to raise aries and provide them with loans and homeland reservations. their drinking while servicemen who guarantees. It is for these reasons that I have in­ have not reached that age can drink The market plan does not "privat­ troduced three bills to convince South on base. It would be just as unfair to ize" Federal credit programs; it does, Africa that its policy of racial separa­ cling to a 21-year-age rule on a mili­ as described above, utilize the private tion will only result in further eco­ tary post when 18-, 19-, and 20-year­ capital markets in order to determine nomic and political isolation in the olds can drink in a State-regulated bar the costs of credit programs. world community. The market plan does not change across the street from the post. I am asking for a prohibition of the I believe this is fair and equitable. I the manner in which credit assistance importation of South African coal and programs receive their budgetary re­ am enlisting the support of Mothers uranium, a prohibition on the export Against Drunk Driving in this phase sources namely, budget authority. of nuclear technology, and a cancella­ The new market plan does not re­ of the war on drunk drivers. I urge you quire or authorize the sale of the Gov­ tion of the foreign tax credit for com­ to enlist as well. If even one life is ernment's existing loan portfolio. panies doing business in South Africa. saved, this legislation will have accom­ The market plan does not cover Let us not be cynical about the long­ plished a great deal. I invite your co­ Commodity Credit Corporation CCCCl term effects of imposing sanctions. sponsorship.e loans-which are not, in fact, loans, South African business is very atten­ but deferred purchase agreements. tive to the status of American capital The market plan concept has caught investment, as are the political leaders HOUSE'S COMMITMENT TO THE the attention of the Reagan adminis­ in that country. We can bring about JOB CORPS PROGRAM tration. Specifically, the new Econom­ meaningful change. We simply need the commitment and the vision. HON. MA ITHEW G. MARTINEZ ic Report of the President states that OF CALIFORNIA a proposal similar to the market plan I urge my colleagues to support "would lead to a more accurate budget these bills.e IN THE HOUSE OF REPRESENTATIVES accounting of the now implicit subsidy Thursday, February 21, 1985 to the recipients of Federal loans and PARRIS INTRODUCES MILITARY e Mr. MARTINEZ. Mr. Speaker, I am loan guarantees" and "* • • deserves DRINKING AGE LEGISLATION introducing a resolution to reaffirm serious consideration" (p. 93). I cer­ the House's committment to the Job tainly think so.e HON. STAN PARRIS Corps Program. OF VIRGINIA Every year, many of our Nation's SOUTH AFRICA: WE CAN LEND A IN THE HOUSE OF REPRESENTATIVES disadvantaged youth enter the work­ HAND FOR CHANGE force without the education and train­ Thursday, February 21, 1985 ing needed to compete in a world of HON.CHARLESB.RANGEL •Mr. PARRIS. Mr. Speaker, on technological changes. For over two decades, the Job Corps Program has OF NEW YORK Wednesday, February 20, I introduced legislation that will require all of our guaranteed youth like these the neces­ IN THE HOUSE OF REPRESENTATIVES military installations to comply with sary training to prepare them for the Thursday, February 21, 1985 the same minimum legal drinking age challenges that lie ahead, training • Mr. RANGEL. Mr. Speaker, I have or ages that applies in the State in they otherwise would not have re­ introduced legislation this week which which an installation is located. ceived. Without the Job Corps Pro­ seeks to focus attention on commercial In other words, if the legal minimum gram, thousands of disadvantaged links between the United States and drinking age in Virginia is 21, then youth would be denied the opportuni­ the Republic of South Africa. I rise to that will be the legal minimum drink­ ty to successfully compete in our Na­ ask my colleagues to favorably consid­ ing age for alcoholic beverages on all tion's labor market. er these measures. military installations in Virginia. The Job Corp's proven committment This century has witnessed many in­ Last year, this Congress passed legis­ to the economically disadvantaged stances of state-sponsored repression, lation mandating a minimum drinking youth of our country stands as a reaf­ when the mechanisms of national ad­ age of 21, and told each State that if it firmation for the continuation of the ministration have been designed to failed to comply it faced some modest program. Since its inception, Job quash the most fundamental liberties. reduction in Federal highway trust Corps has provided job training and Two examples of this unfortunate fact fund allocations. This step was taken support services to over one million must be distinguished because to the to help curtail the slaughter on our two hundred thousand disadvantaged sheer magnitude of their policies. highways. If we in Congress believe we youth. Evaluations of the program The Holocaust and apartheid are were right to take that action last demonstrate that participating youth strikingly similar. A doctrine of racial year-and I firmly believe we were have benefited substantially from the supremacy has been at the root of right-then it is also right that we training assistance offered by the Job both systems. A philosophy of removal take this step now. Corps. of the subjugated race was employed The Defense Department last fall The post-program experience of Job by the dominant race, with a resulting adopted a loose policy requiring this Corps enrollees shows that the pro­ concentration of the removed group in subject. The DOD policy requires mili­ gram has a high placement rate and is limited geographical areas. tary installations to adhere to the cost effective. According to the De­ The final solution of the Nazis was drinking-age laws of the State in partment of Labor, over 82 percent of to exterminate its subjugated peoples; which each installation is located-but the corps members leaving the pro­ Gypsies, Jews, Slavs, Socialists, and there is a litany of exceptions, and gram achieve positive outcomes, with even dissident Catholic priests were some loopholes, with individual com­ the enrollees placed either in private mercilessly murdered. An industrial manding officers having some discre­ sector jobs, admitted to school or en­ society used its every means to accom­ tion to alter the rules. It is far from a tered the Armed Forces. An Abt ~o­ plish its perverse goals. uniform standard. ciates study in 1978 shows that Job 3092 EXTENSIONS OF REMARKS February 21, 1985 Corps enrollees are more likely than habitat. Clearly, the military mission During World War II, the council nonparticipants to be employed full­ is of paramount importance on these provided aid to needy families and ref­ time after leaving the program. lands. However, sound fish and wild­ ugees from growing anti-Semitism in Recent studies have indicated that life conservation practices and the Germany and other countries. $1.40 is returned to society for every military mission are frequently not The 1950's marked the founding of a Federal dollar spent on Job Corps. Ac­ mutually exclusive. These lands are medical loan chest, enabling needy cording to a long-term follow-up study also able to provide other valuable citizens of New Bedford to borrow hos­ done by Mathematica Policy Re­ natural resource uses, such as timber pital beds, wheel chairs, and similar search, Inc., it was found that enroll­ and crop production. All of these re­ items free of charge, regardless of reli­ ees earned an average of 15 percent source uses need to be properly inte­ gious denomination. This project is more per year than nonenrollees and grated and balanced if the Nation is to still an important part of the council's were employed more than 3 weeks per receive the greatest benefits from operation as well as aid to senior citi­ year. Job Corps participants are three these lands. zens and the distribution of scholar­ times more likely to achieve a high The Subcommittee on Fisheries and ship funds to worthy high school and school diploma and are much more Wildlife Conservation and the Envi­ college students. NCJW actively sup­ likely to attend college than nonenrol­ rorunent, which I chair, intends to ported the establishment of the New lees. Mathematica also found that the hold a hearing on this bill on March 5, Bedford Rape Crisis center and has longer these youth stayed in Job 1985. This will provide an opportunity taken a stand on birth control issues, Corps, the stronger were their post­ for careful examination of the issue of firmly committeed to the "right of program benefits. competing natural resource uses on every woman to choose abortion and In addition to the Job Corps reputa­ military lands. In addition, these lands elimination of obstacles that limit re­ tion as a cost effective and successful and their resources require the atten­ productive freedom." program proven to place disadvan­ tion and expertise of professional nat­ An amblyopia project to test the taged young men and women in ob­ ural resource management personnel, eyes of young children in the public taining and holding employment, the and the extent of the commitment of schools, and the start of a Tay Sachs program builds in our youth a produc­ the Department of Defense to that re­ study for the community are in the of­ tive and responsible attitude toward quirement will no doubt be a topic of fering. work. The Job Corps is not only an in­ discussion at the hearing. The group has become involved, in vestment in our disadvantaged youth Mr. Speaker, our Federal lands and conjunction with the National Council who are willing to make a positive and the fish and wildlife resources they of Jewish Women's organization in healthy contribution to society, but contain are of extraordinary value to New York, with a new project, the also an investment in the future of our the Nation, and have the potential to Center for the child. This is a research Nation. Without the Job Corps Pro­ remain so with prudent management. program to identify the most effective gram our country will be forced to This bill will provide a vehicle for solutions to problems facing children confront an increasing number of un­ review and discussion by the Congress and to help in the formation of public educated and poorly trained youth. of the adequacy of the Sikes Act in policy and community service pro­ It is our responsibility to continue to helping to meet the challenge of con­ grams nationally. provide training and support services serving and managing our valuable Mrs. Marcella Brody has served as to those individuals unprepared to fish and wildlife resources.e president on three different occasion. enter our Nation's workforce. Your Today, here sister, Phyllis Mayer­ support in reaffirming the House's Brody, is president. the other officers committment to the Job Corps Pro­ NEW BEDFORD COUNCIL OF are: Anita Asser, Charlotte Salon, gram builds on the foundation of a JEWISH WOMEN CELEBRATES Lynda Mindlin, and Lillian Glantz, program which has been proven to 70TH ANNIVERSARY vice presidents; Marcella Brody, treas­ contribute to a healthier and more urer; Adele Koren, secretary; Adelle productive economy.e HON. GERRY E. STUDDS Queen, financial secretary; and Bar­ OF MASSACHUSETrS bara Jacobson, mailing secretary. IN THE HOUSE OF REPRESENTATIVES The present organization has a total SIKES ACT REAUTHORIZATION Thursday, February 21, 1985 of 400 members. Its volunteer services are operating actively with a large HON. JOHN B. BREAUX e Mr. STUDDS. Mr. Speaker, it is body of committed and interested OF LOUISIANA with great pride and pleasure that I women.e IN THE HOUSE OF REPRESENTATIVES take this occasion to note that the New Bedford section of the National Thursday, February 21, 1985 Council of Jewish Women observed its DISTINGUISHED PORTUGUESE- e Mr. BREAUX. Mr. Speaker, today I 70th year of operation on February 17, AMERICANS TO RECEIVE am introducing a bill to reauthorize 1985. AWARDS IN FALL RIVER, MA the Sikes Act for fiscal years 1986, The New Bedford section was 1987, and 1988. The Sikes Act, origi­ formed in 1915 by 11 newly married HON. BARNEY FRANK nally passed in 1960, is designed to en­ women who invited the president of OF MASSACHUSETTS courage the implementation of sound the Boston section to discuss plans for IN THE HOUSE OF REPRESENTATIVES wildlife management practices on mili­ their formation. Mrs. Henry Lu­ tary and other Federal lands through miansky became the first president. Thursday, February 21, 1985 development of cooperative programs Other founding officers included Mrs. e Mr. FRANK. Mr. Speaker, each between Federal agencies with land Hyman Mendelson and Mrs. William year 0 Jomal, the Portuguese Journal management responsibilities, the U.S. Beserosky. of Fall River, MA honors prominent Fish and Wildlife Service and the ap­ At that time, the organization was Portuguese-Americans and public serv­ propriate State fish and game agen­ involved with projects that included ice organizations for their many con­ cies. raising relief funds for stricken Jews tributions to society. On February 24, The issue of fish and wildlife man­ in war-tom Europe. During World 0 Jomal will once again host the Por­ agement on military lands has been War I, the council was a friend and tuguese-American of the Year Award particularly controversial in the past guide for immigrants and became a Dinner and present the award to Mer­ few years. The military controls mil­ crucial agency for all areas of war edith Vieira. I am taking this opportu­ lions of acres of land, much of which relief: rolling bandages, knitting socks, nity to commend Ray and Kathy includes valuable fish and wildlife and selling, war bonds. Castro, of O Jomal, the organizers of February 21, 1985 EXTENSIONS OF REMARKS 3093 this annual recognition of the tremen­ and then worked in various capacities IN TRIBUTE TO PERCY M. dous efforts of Portuguese-Americans with CBS-TV. Meredith Vieira has FLOWERS have made to society, and to share through her work demonstrated a with my colleagues the list of this commitment to high professional year's award recipients for their self­ standards of which all Americans can HON. JULIAN C. DIXON sacrificing efforts on behalf of their be proud. OF CALIFORNIA communities. Mr. Speaker, the contribution of IN THE HOUSE OF REPRESENTATIVES This year's award recipients are: Norman Sousa: President of the Portuguese-Americans to our Nation's Thursday, February 21, 1985 growth and diversity is a generous one. Flint Little League, 10 baseball teams, • Mr. DIXON. Mr. Speaker, I would and 7 basketball teams. Mr. Sousa has I am pleased to bring to the attention of our colleagues the efforts of a few like to take this opportunity, before helped organize fundraising efforts to my colleagues in the House of Repre­ support these worthwhile community of the many outstanding Portuguese American individuals.e sentatives, to pay tribute to a loyal efforts for Fall River, MA youth. He and longstanding member of my staff has been known to dig into his own pocket to purchase equipment for who is retiring at the end of this those children who would otherwise be SGT. HARRY CURLEY month. unable to participate. Percy M. Flowers has been my office Beatrice Angelo: An outstanding ex­ HON. WILLIAM J. HUGHES manager since I began serving in Con­ ample of dedication to community gress in 1979. I was fortunate to have service for her tireless efforts in the OF NEW JERSEY Percy join my Washington staff not field of education, particularly for IN THE HOUSE OF REPRESENTATIVES only because she had been a friend for newly arrived Portuguese immigrants. Thursday, February 21, 1985 more than 20 years, but also because Beatrice and her husband, John, have she had already gained several years long served the Portuguese American e Mr. HUGHES. Mr. Speaker, I am of experience working for former Rep­ community-John serves on my Fall pleased to rise today to call special at­ resentatives Yvonne Braithwaite River staff. She has taught adult edu­ tention to the efforts of one of our Na­ Burke and Gillis Long. cation and citizenship classes at the tion's finest law enforcement officers, Percy has given more than 13 years Espirito Santos School for 6 years Sgt. Harry Curley of the Vineland, NJ, of dedicated service on Capitol Hill, without compensation and is singular­ Police Department. and she has become a friendly, famil­ ly responsible for the successful orien­ Sergeant Curley has just retired iar face to hundreds of her colleagues tation of innumerable arriving Portu­ from the police force after a 25-year working for the House. As an office guese immigrants to our country. career in law enforcement. During Carlos Sousa: Proprietor of Novart manager, she has helped me immeas­ that period, Sergeant Curley compiled urably in maintaining a smooth oper­ Photography Studio and part of a a distinguished record as a police offi­ small dedicated group of citizens who ation here. She was held in equally have formed the Portuguese American cer, and as a liaison between the com­ high esteem by former Congresswom­ Business Association in Fall River, munity and the police department. an Burke; my good friend and prede­ MA. With over 200 members, the Por­ Sergeant Curley has received many cessor in the House, and the late Con­ tuguese American Business Associa­ commendations and awards through­ gressman Long of Louisiana. Her tion has contributed enormously to out his career. Perhaps his most nota­ latter service was so appropriate be­ the economic and philanthropic well­ ble achievements, however, have come cause Percy was born and lived her being of the greater Fall River area. in the area of crime prevention. early years in Alexandria, LA. Cambridge Organization of Portu­ As head of the police department's Despite her roots in Louisiana, how­ guese-Americans [COPA]: This fine crime prevention unit, Sergeant ever, most of us really consider Percy organization founded in 1969 serves Curley organized neighborhood crime to be a native of Los Angeles. She the limited English speaking popula­ watch groups, business and residential graduated from Pasadena City Col­ tion in Cambridge, MA. It is a private, security surveys, armed robbery and lege, established roots and raised a nonprofit organization with a fully bi­ burglary prevention programs, shop­ family in southern California. lingual staff to meet the cultural and lifting prevention programs for retail I met Percy when she worked with human services needs of the communi­ merchants and students, and he ty. The award is being offered in my close friend, Judge Dion Morrow, memory of the late Cardinal Hum­ founded the local Crimestoppers Pro­ who then had a law firm in Los Ange­ berto Medeiros. Accepting the award gram. les. She is the proud mother of two will be the executive director of In addition, Sergeant Curley devoted sons, Harry and Bob Reed, and she is COPA, Victor M. DoCouto. many hours of his personal time over grandmother of a beautiful little girl, Coral Heranca Portuguesa: A singing the years working with youths, civic Conita. group founded in 1976 through the ef­ leaders, and members of the clergy to While all of us on the Dixon team forts of the Portuguese Vice-Consul to help improve community attitudes and are sorry to lose Percy, we are happy the United States in Providence, RI to promote a sense of pride and respect knowing that she is vibrant and young help commemorate the U.S. bicenten­ within the city of Vineland. in spirit and that she will enjoy great­ nial. The choral group has performed Although he has retired from the ly this opportunity to relax, enjoy her throughout the country; its 20 mem­ police force, Sergeant Curley contin­ family, and appreciate the things she bers include the Vice Consul of Portu­ ues to be active in community work has worked so hard for. Percy has gal in Rhode Island, Rogerio Medina through his service on the Vineland been a good friend to so many of us, and his wife. Board of Education. He is a fine citi­ and we all wish her very well as she Meredith Vieira: Finally, the Portu­ zen and community leader, and I am begins this new chapter.e guese American Award Dinner will pleased to commend Sergeant Curley present the Portuguese American Citi­ zen of the Year Award to Meredith for his many accomplishments in the Vieira, the national correspondent for field of law enforcement.e CBS Evening News. She grew up in Providence, RI, began her broadcast­ ing career at WEEI radio in Boston, moved to WJAR-TV in Providence, 3094 EXTENSIONS OF REMARKS February 21, 1985 COMMEND ISRAELI RESCUE House Select Committee on Aging, I pital and Rahway Geriatric Center; EFFORTS have occasion to meet and confer regu­ the Elizabeth, NJ, Visiting Nurse and larly with Federal, State, and local of­ Health Services; Union College and HON. BARBARA A. MIKULSKI ficials involved in the field of aging. I the Gerontology Center at Kean Col­ OF MARYLAND am impressed with the dedication, en­ lege of New Jersey; the Senior Citizens IN THE HOUSE OF REPRESENTATIVES thusiasm, and professionalism of these of Winfield, NJ; both the New Jersey individuals who work to improve the Association and National Association Thursday, February 21, 1985 lives of our Nation's 36 million senior of Area Agencies on Aging; the Geron­ e Ms. MIKULSKI. Mr. Speaker, it is citizens. Two months ago, one such in­ tological Society of New Jersey; the now 2 months since news of Operation dividual upon whom I and many Advisory Committee to the New Moses, the stunning Israeli rescue of others has come to depend announced Jersey Governor's Continuum on Ethiopian Jews, was made public. The his retirement as Director of the Aging, and the New Jersey Depart­ boldness, compassion, and efficiency of Union County, NJ, Division on Aging. ment of Human Services and Depart­ that enormous task merits our respect While I am certain his lovely wife ment of the Public Advocate. and commendation. Israel is to be con­ Eunice and their three children are Mr. Shields' leadership also is illus­ gratulated, but she needs more than pleaased with his decision, he will be trated by his founding and initial applause. We must reaffirm and missed by me, by his friends and col­ chairmanship of the New Jersey Lead­ strengthen our support for Israel and leagues, and most of all, by the elderly ership Council on Aging, a coalition of the Israeli rescue efforts. in Union County. 21 professional and senior groups Operation Moses helped over 8,000 A founder of the Union County Divi­ whose members include, among Ethiopian Jews reach Israel. While sion on Aging, Mr. Shields devoted others, the New Jersey Chapter of the much of the rest of the world was par­ nearly 30 years of service to the Feder­ American Association of Retired Per­ alyzed with horror looking at the faces al Government, a majority of the time sons and the New Jersey Home Health of starving ethiopians, Israel stepped as a Social Security field representa­ Assembly. He is the past president of in with direct and successful action. tive, before becoming director of the the New Jersey Association of Area Israel recognized Ethiopian Jews as division in 1972. In his 13-year tenure, sisters and brothers and did what had Agencies on Aging and the New Jersey he compiled an unparalleled record of Gerontological Society. The Fordham to be done to rescue them from the accomplishment in service to Union ethiopian famine and from religious University graduate also served as a County's 100,000 senior citizens. member of the New Jersey Governor's persecution. Operation Moses was Pete Shields had a unique ability to truly a heroic accomplishment. Long Term Care Committee and the leverage State, local, and private New Jersey State Nursing Home Task Now Israel faces a new challenge: sector resources to supplement Feder­ the absorption of the Ethiopian Jews. Force. al funding for aging programs. He and As the senior Republican on the Israel herself is beleaguered by eco­ his staff were experts in marshalling nomic and political problems. The spe­ House Aging Committee, I have the support of area businesses, labor, always valued Pete Shields' counsel. cial needs of the Ethiopian Jews are church groups, and individual volun­ staggering. Yet the Israelis have wel­ His testimony before Aging Commit­ teers in cooperative efforts to assist tee field hearings in New Jersey in comed them with open arms. Ethiopi­ Union County's elderly. an Jews have stepped almost literally The county's home-delivered and 1980 and 1984 was instrumental in out of the pages of the Bible into 20th congregated nutrition programs have shaping Federal legislation to combat century Israel. Their health care, edu­ elder abuse and strengthen the Older been recognized nationally for their Americans Act. cation, and training needs are enor­ efficiency and organization. Over 3 mous. Israel is once again making ex­ million meals have been served to the While Pete Shields has officially re­ traordinary efforts necessary to meet elderly of Union County, one-third of tired, I know that he will remain the needs of Jews. which went to the homebound. active and involved in civic affairs in The strength of the Israeli spirit ap­ One of Mr. Shields' top priorities his hometown of Winfield, in Union pears indomitable. We can only guess was the expansion of home health County, and in New Jersey.e at the toll it takes on Israelis and care options for older individuals who Israel herself. Operation Moses was a wish to remain at home. Hundreds of THE SINKING OF THE LEOPOLD­ clandestine effort and any subsequent thousands of hours of nursing, home rescue attempt must be carried out VILLE: A TRAGEDY REMEM­ health aide, homemaking, friendly vis­ BERED with discretion and in secret. Yet this itor and hospice services have been operation and the continuing efforts provided to senior citizens in noninsti­ to settle the Ethiopian Jews in Israel tutional, community-based settings. In HON. NICHOLAS MA VROULES are outstanding examples of humani­ November 1984, Pete Shields was rec­ OF MASSACHUSETI'S tarianism. ognized for his leadership in expand­ IN THE HOUSE OF REPRESENTATIVES Last week I received notice that the ing quality home care services to the U.S. Department of State continues to elderly by the New Jersey Home Thursday, February 21, 1985 regard the status of the Ethiopian Health Assembly and Home Care e Mr. MAVROULES. Mr. Speaker, I Jews as a priority issue. I urge my col­ Council. want to take this opportunity to pay a leagues to join me to give whatever di­ Pete Shields' reputation as an inno­ special tribute to the soldiers on board rection and support we can to Ameri­ vative, dynamic administrator reached the S.S. Leopoldville when she was can policy and world action to save the far beyond the borders of Union torpedoed and sunk off the coast of Ethiopian J ews.e County. He received 20 awards and ci­ France on December 24, 1944. tations from national, State, and local When the Leopoldville was hit by A TRIBUTE TO PETER M. organizations, including 3 awards from enemy fire on that Christmas Eve, she SHIELDS the National Association of Counties, was enroute from England to Cher­ and individual awards from the New bourg, France, transporting American HON. MATIHEW J. RINALDO Jersey Association of Counties; the troops to the battlefield. With 815 OF NEW JERSEY Grant Avenue Community Center, Americans lost at sea, this tragedy IN THE HOUSE OF REPRESENTATIVES Plainfield, NJ; the Union County Re­ constitutes the second worst naval dis­ tired Senior Volunteer Program, the aster in the European theater, and was Thursday, February 21, 1985 Union County Senior Citizens Council the last major naval catastrophe e Mr. RINALDO. Mr. Speaker, as and Catholic Community Services of caused by enemy fire during World ranking minority member of the Union County; the Rahway, NJ, Hos- War II. February 21, 1985 EXTENSIONS OF REMARKS 3095 Let us pause to thank all those who First, the R&D tax credit CH.R. form research. In my own home State bravely fought for freedom and justice 1188) scheduled to expire at the end of of Texas, for example, a recent survey during World War II, and remember 1985, is improved and made a perma­ of engineering schools at Texas col­ our heroes who risked their lives for nent part of the tax law. In particular, leges and universities conducted by our country.e the definition of qualified research for the Texas Society of Professional engi­ R&D credit purposes is tightened to neers indicated that all of these engi­ TRIBUTE TO JIM BLATT eliminate any taxpayer abuses of the neering schools combined face a criti­ R&D credit and to ensure that the cal need for $37.1 million in scientific credit is targeted to fulfill its original equipment for research and teaching HON. HOWARD L. BERMAN purpose of encouraging technological and a total need for $99.1 million in OF CALIFORNIA innovation. Second, the current incen­ scientific equipment. The University IN THE HOUSE OF REPRESENTATIVES tives for corporate funding of universi­ of Texas at Austin has a critical need Thursday, February 21, 1985 ty basic research are expanded. and for engineering equipment of $7.7 mil­ e Mr. BERMAN. Mr. Speaker, I would third, incentives for the private sector lion and a total need for such equip­ like to take this opportunity to recog­ to aid scientific education programs in ment of $28. 7 million; Texas A&M nize a close friend and a respected con­ our colleges and universities are en­ University has a critical need of $7 .6 stituent as he leaves the presidency of hanced. million and total need of $10.8 million; the San Fernando Valley Criminal Bar The R&D tax credit was originally the University of Houston has a criti­ Association. enacted in 1981 to provide just such an cal need of $5.8 million and a total In addition to his unselfish contribu­ incentive. Based on the information need of $8.6 million; Prairies View tions to the bar association, Jim served that is available to date, the credit has A&M has a critical need of $1.6 mil­ 3 years as a deputy district attorney been a success. In 1981, R&D expendi­ lion and a total need of $3.9 million. and has been active in many communi­ tures increased by over 40 percent Mr. Speaker, I give these examples to ty projects. compared to the previous year. In illustrate the situation in just one However, I think the most striking 1982, there was a 38-percent increase State. But this same situation is occur­ example of Jim's character-and one in R&D. Considering that these were ring in every State. This legislation of the reasons I hold him in such ad­ both recessionary years, these in­ provides broadened incentives for cor­ miration-is the concern he has shown creases are particularly impressive. porations to fund university basic re­ for the youth in our community. From Mr. Speaker, it is well established search activities and to donate badly 1978 through 1979 he was president of that, prior to the enactment of the needed scientific equipment. the board of directors of Cry Help, a R&D tax credit, the decline in U.S. In short, it has become increasingly narcotics rehabilitation program. productivity growth was parallel to clear that the economic progress of During that period he also found time the decline in spending by U.S. firms the United States depends in large to work as a member of the field oper­ onR&D. part upon the prosperity and growth ations staff for specialty youth pro­ Not surprisingly, this lack of invest­ of its high technology industries. If grams. ment in R&D has taken its toll to the Congress is truly serious about foster­ Today I have the honor of express­ point where the United States is in ing an environment in which our high ing my sincere affection and admira­ danger of losing its superiority in tech­ technology industries can flourish, we tion for a man that deserves the pro­ nological innovation. Over the past 20 must make the R&D tax credit perma­ found gratitude of his community. I years, our foreign competitors, led by nent. ask the Members to join the San Fer­ Japan and West Germany, have devot­ Mr. Speaker, I ask unanimous con­ nando Criminal Bar Association in ex­ ed more resources, as a percentage of sent that a summary of the bill be pressing their appreciation and wish­ gross national product CGNPl, to re­ printed in the CONGRESSIONAL RECORD. search and development. Also, not sur­ ing Jim Blatt great and continued suc­ DETAILED DESCRIPTION OF THE HIGH TEcH- prisingly, Japan and West Germany cess.• NOLOGY RESEARCH AND SCIENTIFIC EDUCA­ have experienced much higher rates TION ACT OF 1985 of growth in productivity-466 percent I. IMPROVEMENT AND EXTENSION OF THE R&D KEEP U.S. EDGE IN WORLD by Japan as compared with 69 percent CREDIT !TITLE I OF THE ACT) TRADE by the United States. A. R&D credit made permanent fsec. 101J Our foreign competitors appreciate The Act eliminates the current sunset pro­ HON. J.J. PICKLE the link between R&D and future vision under which the R&D credit is due to OF TEXAS competitiveness and productivity. expire on December 31, 1985, thereby IN THE HOUSE OF REPRESENTATIVES Canada, Japan, West Germany, making the credit permanent. Mexico, and Spain have adopted tax Thursday, February 21, 1985 B. Improvement of the R&D credit through credits for domestic R&D activities. clarification and tightening of the defini­ e Mr. PICKLE. Mr. Speaker, I am Just recently, France adopted an R&D tion of qualified research for credit pur­ today introducing legislation with Mr. tax credit that closely resembles the poses (sec. 102) FRENZEL, and other Members of Con­ U.S. credit. 1. The Act adopts a new definition of gress, which will help ensure that In addition, the governments of our qualified research for R&D purposes that is America will retain her competitive foreign competitors often target high­ entirely separate from the definition of re­ edge in the world trade market. Our tech industries for special nurturing. search or experimentation for section 174 country has always been a leader in This support may take the form of deduction purposes. The new credit defini­ tion adopts as its starting point the defini­ commerce, industry, science, and tech­ protected markets for emerging tech­ tion of R&D for financial accounting pur­ nological innovation. In fact, techno­ nologies, subsidized government loans, poses, subject to various modifications. logical leadership and innovation may export subsidies, and government 2. In general, qualified research for R&D be this country's most valuable nation­ sponsorship of collaborative research credit purposes means (i) planned search or al resource or commodity. efforts in key technological fields. critical investigation undertaken for the purpose of dis­ changed, and our preeminence as the versities, education in mathematics, covering information which may be poten­ technological leader of the free world engineering, and the physical, biologi­ tially useful in the development of a techno­ is being challenged by competitors cal, and computer sciences has suf­ logically new or improved business compo­ nent of the taxpayer or (ii) applying the re­ throughout the world. fered from a chronic shortage of facul­ sults obtained from a research activity or This legislation takes a comprehen­ ty and a severe lack of up-to-date sci­ other knowledge to develop a technological­ sive approach to maintaining our tech­ entific equipment upon which stu­ ly new or improved business component of nological competitiveness. dents and faculty can learn and per- the taxpayer, including the conceptual for- 3096 EXTENSIONS OF REMARKS February 21, 1985 mulation, design, testing, and reformulation the R&D credit, but also bars most service which either of these exceptions applies, of hypotheses regarding elements of the industries, including banking and other fi­ the research expenses will flow through to business component and the design, con­ nancial and insurance services, from claim­ the partners, with the trade or business test struction, and testing of prototypes, models, ing the credit. being applied, and the credit computation and pilot plants. Third, by requiring that the product being made, at the partner level. 3. "Technologically new or improved"­ or process be developed by the process of II. PROMOTION OF UNIVERSITY RESEARCH AND two-fold requirement: experimentation, including the develop­ SCIENTIFIC EDUCATION