e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. November 6, 1981 CONGRESSIONAL RECORD-SENATE 26925 whelmlngly. Nobody has really had this coming article in the Kentucky Law Journal to object. If the department falls to object entitled "Section 5 of the Voting Rights and intervention does not occur, an uncon proposal before them, Mr. President. Act: A Time for Revision." The Keady/ tested judgment would then be entered. It is a new procedure and I hope the Cochran article relies on, among other The problem with an unusually biased Senate will review it carefully during the things, one document with which I am sure judge would be cured by the provision for hearings on the Voting Rights Act that you are familiar, the GAO report on the an automatic stay coupled with an expe will be undertaken, as I understand it, voting rights section of the Justice Depart dited appeal procedure. I recently had an early next year by the Senate Judiciary ment and a book entitled "Compromise Com expedited appeal to the fifth circuit and Committee. pliance." Both lead to some unavoidable we were at oral argument, all briefing com EXHIBIT 1 conclusions which serve as the empirical pleted, sixty days after notice of appeal was foundation for the Keady/ Cochran proposal. filed. Moreover, the availability of a statu STATEMENT OF WILBUR 0. COLOM First, there is an extremely high submis tory right for mandamus would assure that Mr. Chairman and Members of the Com sion rate by covered jurisdictions of proposed these actions would be heard expeditiously. mittee: change, and this submission rate has an The bottom line is that the voting rights My name is Wilbur 0. Colom. You have incapacitating effect on quality review by act can and should be strengthened to as my resume before you and I will omit any the voting rights sections. Second, there are sure effective enforcement. This proposal reference to my background other than to real and justifiable suspicions that admin achieves that goal while at the same time point out that I was born and spent my istrative preclearance has neglected those allowing for nationwide application and entire life in Mississippi, except for a pe interests it was designed to serve. 1980 sta ending an inefficient administrative proce riod of 10 years when I was away in school. tistics show that of 7,340 submissions, only dure. In a candid moment, my friends from This is a most difficult presentation for 51 objections were interposed. The chaotic Mississippi, many who have testified before me to make; not because of any doubt re and hurried review given by the Civil Rights you, will admit that the justice department garding the merits of the Kea:iy/ Cochran Divlsl.on. tends to /bear out the oonolusion is doing less than a gTand job of enforcing proposal, but because I find myself isolated that effective full enforcement is not now the provisions of section 5 of the voting from men and women who have been heroic and cannot be achieved in t-he Department rights act. figures in my life, some even my personal of Justice now or in the future. Third, the They will acknowledge that it is difficult friends. Aaron Henry, Charles Evers and Supreme Court in Morris v. Gressett held to find fault with the Keady/Cochran pro many others who testified before you have that there is no judicial review of a depart posal. Yet, they fear that any tinkering with been persons who have fought critical bat mental decision not to object to a submis the act will result in it being gutted with tles that gave me the right to vote, gave sion. republican amendments. I hope and I pray me the opportunity to be a member of Presi Such an unreviewable power is foreign to that the present •administration and my fel dent Reagan's transition staff. They were our pro:::ess and has a potential for abuse. I low republicans will prove them wrong. out front when bombs were the greatest tool prefer to vest the responsibility of protect The enforcement procedures of the voting of the opponents of equal opportunity. But ing my rights to participate in the electoral rights act are not written on a sacred scroll. I, too, was active in the civil rights move process in the hands of a southern Federal While the principles embodied in the act ment in the mid-60's and I, too, recall the judge, subject to the expedited review of the should be sacred to all of us; for it was gross inequalities. FLfth Circuit, than to vest that Mlthority through much suffering in my lifetime the Add my voice to theirs in saying that the in the hands of a political appointee whose gains were made, the mechanism for en voting rights act must be extended. position may be based upon his or her role forcement should be open for debate as Mis As an active Republican, I can say with in a campaign, rather than his or her dedi sissippi changes and as America changes. out hesitation that the voting rights act cation to the law. Innovative ideas on enforcement such as and section 5 of the act are essential to the Finally, in 1975, Assistant Attorney Gen the Keady / Cochran proposal should be maintenance of the two party system and eral Pottinger stated that a mechanism welcomed. necessary for the protection of fundamen would be in place which would insure that t!l.l rights. Indeed, my right and that of covered jurtsdl'Otions comply w1 th the pre Mr. COCHRAN. Mr. President, I know my child to participate in the electoral clearance requirement. Recently, he ac of no other request for leader time on process is at stake. knowledged, after six years, that no such this side of the aisle. I yield to the dis While we must acknowledge that voter mechanism has been put in place. It is tinguished Senator from Michigan. intimidation, barriers to registration and abundantly clear that no such technique is even ballot box stuffing, the tools of the available in the Department. past, to a large extent, have disappeared. It is mandatory, considering the foregoing. RECOGNITION OF THE ACTING that this committee explore alternatives Th~re stlll remains white block voting, sub MINORITY LEADER tle maneuvers to dilute black voting which will cure the existing deficiencies of strength and blatant efforts to negate black administrative preclearance and would ex The PRESIDING OFFICER nt r~~ist.ry" maintained in the office of the district court clerk. I am agreeable to that, if he wishes to voters be protected in the broadest of forms. seek recognition. To do otherwise would invite a return to In light of the current inab111ty of mi the one party dixicrat days. norities to have definitive input to the pre Mr. MITCHELL. I thank the Senator. Now, to the specifics of the Keady/ clearance process as well as the previously Cochran prooosal. W11liam Keady is the stated inability to secure judicial review of chief judge for the United States District a decision not to object, this portion of the RECOGNITIO~ OF SENATOR Court for the Northern District of Mississip Keady Cochr'an proposal is criti·cal. MITCHELL pi. George Cochran is a professor of law at The statutory right of intervention by the University of Mississippi Law center. individuals would, among other things, The PRESIDING OFFICER. The Sen 'their proposal is outlined in their forth- make irrevelant a departmental decision not ator from Maine is recognized. 26926 CONGRESSIONAL RECORD-SENATE November 6, 1981 JUDICIAL INDEPENDENCE protect, when necessary, unpopular views ing constitutional wrongs. This role of and politically unrepresented minorities. the courts, however, has not been as Mr. MITCHELL. Mr. President, I want Instead of following election returns, sumed by choice or judicial flat. While in to take this opportunity to respond to courts are supposed to apply-in a con the speech made by Attorney General the first instance, the legislative and sistent, careful, and rational manner executive branches may hold the power Smith last week, in which he sharply constitutional precedent and principle to attacked the role played by Federal to enforce constitutional guarantees courts in the development of constitu both old and new problems. In this way, by providing criminal penalties, redress the courts preserve our democratic proc in civil suits, and the like-neither of t\onal law. In so doing, the Attorney ess and constitutional protections, no General urged the courts to color their these branches nor State government matter what the political passions of the has always shown a readiness to share dec1sions to reflect the conservative moment might be. the responsibility of 'fully vindicating trend in the most recent election re The Attorney General's expressed pref turns. constitutional principles. So the courts, As a former U.S. attorney and Fed erence that courts follow election returns when called upon to remedy demonstra eral district court judge, I take stron3 rather than legal precedent demonstrates ble constitutional wrongs, have done so. issue with Mr. Smith's statement. Re a fundamental misunderstanding of the Of course, many of the wrongs that grettably, his remarks show a funda judiciary's role in our constitutional sys Federal courts nre called upon to make tem. This idea, in fact, is a radical change right would not even reach the judicial mental Jack of understanding of th~ purpose and function of the Federal from the historical and traditional role system if remedies were elsewhere pro judiciary, as well as a lack of respect of the courts. The Attorney General does vided. But this sadly has not been the for many of the basic constitutional not seek a return to conservative prin case. rights that we, as American citizens, all ciples, but instead would undermine one We must remember that courts do not share. of the oldest principles in our constitu trigger litigation. Rather litigants bring I tional system-the independence of the lawsuits to courts. For courts to resolve In his speech, the Attorney General judiciary. these disputes in no way touches upon called on Fede1-al judges to follow the Unless the judicial branch is free to the constitutional doctrine of justici results of the recent elections. He sug play its proper role, our system of gov ability, as the Attorney General might gested that courts should be influenced ernment will be weakened, and all Amer have us believe. As our Constitution re by "major public changes in political icans will suffer for it. I am deeply quires, Federal courts deal with real, live attitudes." In support of his idea that troubled by the fact that the Attorney "cases and controversies." And Federal "basic changes in public sentiment" General, the chief legal officer of our judges would be shirking responsibility should bend "judicial philosophy," At country, fails to recognize fundamental to turn their backs on legitimate griev torney General Smith quoted from a constitutional principles. Indeed, his ill ances that are brought by parties who verse written some 80 years ago by the advised remarks-in spite of their pos have been wronged. humorist Finley Peter Dunne. This sible immediate political attractiveness What would the Attorney General verse poked fun at the Supreme Court serve only to weaken the respect for and have the courts do? In addition to his for following the 190a Presidential elec independence of the judiciary. beckoning toward the recent election tion returns, rather than the Constitu Overall, the Attorney General criti returns, the Attorney General referred tion, in a group of cases holding that cized our courts for doing too much pol in his recent speech, to several area~ our constitutional protections did not icymaking. The problem with this criti where he thought the courts should ap automatically attach to territories an cism is that he then appeals to the courts proach constitutional decisionmaking nexed after the Spanish-American War. to yield to a so-called ground swell of differently. Mr. Dunne clearly intended his verse as conservatism evidenced by the 1980 elec First, in the area of justiciability, he t?ngue-i?~cheek satire of improper judi tion. That is, he urges the courts to base suggested a more conservative approach Cial deciSwnmaking; somehow, the At their decisions on partisan political re to allowing parties to bring constitu torney General has completely missed sults. In other words, he does want the tional questions to the attention of the the joke. Federal courts to make policy, so long courts. Interestingly, this is an area in To argue, as the Attorney General did, as they are policies he favors. Thus, Mr. ~hich the Supreme Court has recently that the Federal judiciary should pay Smith advocates the very type of politi Issued several decisions which signifi heed to alleged election mandates is to cal decisionmaking by the courts which cantly alter the requirements of stand undermine the independence of the judi he attacks. ing and similar principles in a manner ciary, the constitutional principle of the Moreover, except for expressing a dis that cuts back the reach of the Federal separation of powers, and our democratic taste for certain recent court decisions, courts. system of checks and balances that has the Attorney General offers no sugges What the Attorney General seems to evolved over the past two centuries. tions as to how courts are to properly be suggesting is that this is not enough, The Federal courts in this country resolve constitutional disputes. The logic and that more litigants should be denied were created as an independent branch of his position is that, in spite of con access to the courts to argue that con of government that would be immune stitutional principles, the courts should stitutional principles have been violated. from the immediate political pressures follow the election returns. I am at a In short, he thinks that constitutional that properly are brought to bear on the loss to find any constitutional principles problems would be solved if there simply legislative and executive branches. In to support the Attorney General's posi we.re no ?PPOrtunity to argue that they deed .. a major purpose of the judicial sys tion. exist. This hardly seems to be a princi tem Is to make certain that the consti II pl~d ~ay of dealing with pressing con stl tutwnal controversies. tutional principles of our Founding The Federal courts do and should de Fathers are not swallowed up by election Second, the Attorney General suggests velop constitutional law. Obviously, our a halt in the development of the law of returns. As Chief Justice Harlan F. Founding Fathers could not anticipate ~tone wrote in the Harvard Law Review equal protection in its application to both nor expressly provide for each and every new groups and new areas. Again, he m 1936, one of the most important func situation which merits constitutional tions that courts perform is to apply the suggests no new or different formulation protection. That is part of the genius of of the .constitutional principle of equal "sobe~ second thought of the community" our Constitution-its principles remain to actwns taken by the politically-domi protectiOn. Rather, he suggests rejecting flexible enough to meet the changing the application of equal protection nated legislative and executive branches. needs of our society even 200 years after standards already enunciated and ap T~e fact that Federal judges are ap its adoption. To make this svstem work, plied. In other words, he would deny this pomted for lifetime tenure-making it the power was lodged with the courts to most basic constitutional protection to impossible to vote them out of office every define the substantive content of con 2 to 6 years-reflects this intended inde those groups who have not yet had a stitutional guarantees in those situations ch~nce to bring their constitutional pendence from short-term political re not made part of the very language of sults. grievances to the courts-again not a our Constitution anrl Bill of Rights. principled means of adjudicating these The Federal courts thus represent our To be sure, in the proper exercise of Issues. only branch of government with the in this power, courts have played a signifi Finally, the Attorney General com sulation from political winds essential to cant role in the past 40 years in remedy- plains about the intrusions which courts November 6, 1981 CONGRESSIONAL RECORD-SENATE 26927 have made into the operations of gov purposes. If followed, his ideas could lead and we now have 8.5 million Americans ernment when fashioning remedies to to the undermining of one of the funda who are out of work. Many of them are undo the harm inflicted by constitutional mental parts of our system of govern jobless simply because of the Reagan wrongs. Certainly, this is a topic which ment-an independent judiciary. The administration's commitment to this deserves serious debate, since it raises Constitution grants us far more, and we, t.igh interest rate strategy. The admin very difficult issues under the constitu as American citizens, deserve no less. istration's monetary overkill is creating tional doctrine of separation of powers. Thank you, Mr. President. this unemployment, creating a cascade Unfortunately, the Attorney General The PRESIDING OFFICER. Who of business bankruptcies and sending the does not contribute to such a debate. He yields time? economy deeper and deeper into reces ignores the fact that courts have been sion. forced to enter into the area of remedy It is interesting to note the misery in ing constitutional wrongs in large part RECOGNITION OF SENATOR RIEGLE dex which candidate Reagan used effec because the executive and legislative The PRESIDING OFFICER. The Sen tively in the last campaign. The misery branches of government-in many in ator from Michigan is recognized. index is a combination of the inflation stances at the State or local level-have rate and the unemployment rate. One simply refused to face up to their con year ago, when the previous administra stitutional responsibilities. Whether with SENATE JOINT RESOLUTION 120- tion was in power, the misery index was respect to local voting laws, treatment EMERGENCY RESOLUTION DI 20.9 percent. Today it has risen to 22.8 in prisons, discrimination in education, RECTING THE PRESIDENT TO percent. or other subjects, the Federal courts have ASSURE AN ADEQUATE FLOW OF But I think we need to devise a new been compelled to vindicate constitu AFFORDABLE CREDIT TO SMALL misery index. We need an index to meas tional principles when the legislative and BORROWERS ure also the pain inflicted by sky high executive branches have themselves re Mr. CHILES (for himself, Mr. SASSER, interest rates, and also to measure the fused to act. Mr. MELCHER, Mr. RIEGLE, Mr. ROBERT C. damage of business bankruptcies and For instance, in the 1978 case of BYRD, Mr. BAUCUS, Mr. BIDEN, Mr. BOR failures that are .happening across the Hutto against Finnev, the Supreme EN, Mr. BURDICK, Mr. CANNON, Mr. CRAN country. Court described conditions of an Arkan STON, Mr. DECONCINI, Mr. DODD, Mr. If we had that kind of misery index, sas prison as "a dark and evil world com EAGLETON, Mr. EXON, Mr. FORD, Mr. I think it would be even clearer that we pletely alien to the free world." Not sur GLENN, Mr. HEFLIN, Mr. HUDDLESTON, Mr. are in deeper trouble than we were a prisingly, the Court held that such con INOUYE, Mr. JACKSON, Mr. JoHNSTON, Mr. year ago, and that we are headed down ditions constituted cruel and unusual KENNEDY, Mr. LEAHY, Mr. LEVIN, Mr. ward at the present time. That trend punishment in violation of the eighth MATSUNAGA, Mr. METZENBAUM, Mr. MITCH has to be changed, and that is why we amendment, and affirmed the lower ELL, Mr. NUNN, Mr. PELL, Mr. PRYOR, Mr. have developed this initative to get the court's broad remedies designed to clean RANDOLPH, Mr. SARBANES, Mr. WILLIAMS, job done. up the situation. Does the Attorney Gen and Mr. ZORINSKY). There are three Senators on our side of the aisle who have been the principal eral expect the courts to let these kinds HIGH INTEREST RATES of conditions exist when everyone else leaders in drafting the language of this Mr. RIEGLE. Mr. President, today sev resolution that we will be introducing has stood idly by? eral of us will be participating in a dis For the Attorney General. the solu today. They are Senators CHILES, SASSER, cussion on the interest rate emergency and MELCHER. Senator CHILES will be the tions somehow lie in inactivity, regard that is afflicting the country at this time. less of the fact that acknowledged con principal sponsor of the legislation as it A group of 35 Democratic Senators are is introduced today, and it will be intro stitutional rights have been violated and putting forward a major policy initiative no remedy is available. He does not deny duced in the name, as I say, of the 34 to deal with that problem. Members of the Senate who are support the wrong; he would just eliminate the I will very shortly make an opening possible remedy. ing this initiative. statement that describes this initiative Mr. President, the high interest rates Significantlv, the Attorney General and then I shall yield to my colleagues. are creating tremendous economic dis made no pledge whatever to have the Mr. President, the joint resolution that tress in sector after sector of the econ executive branch aid the Federal courts we are offering today represents a major omy-in the agricultural sector, and in their constitutional duties. To the policy initiative that will bring down the other small businesses that are interest contrary, he proposes that courts simplv record high interest rates which are now rate sensitive. Some ma.ior industrial resist expansion of constitutional rights, do:ng massive damage to key sectors of sectors are also in deep trouble because diminish the standards by which already the economy and which are also plunging of the high interest rates. recognized rights are evaluated. and the economy deeper into recession. I would like to share with my col limit the remedies provided for acknowl The Reagan administration's strategy leagues the data on losses experienced in edged constitutional wrongs. To be sure, calls for high interest rates. We feel that the auto industry over the last 90 days. courts can and do make mistakes. This is this policy has to change and change General Motors reported a quarterly inevitable in anv human institution. The now. loss within the last 10 days of $468 mil fact that mistakes have occurred. how The resolution that we are putting for lion. An article in the Wall Street Jour ever. does not justify a wholesale attack ward will have the force of law and will nal analyzed that loss and pointed out on the independence of the judiciary. compel a change in this high interest that GM's loss was understated because Nonetheless, the Attorney General rate policy. of some foreign exchange adjustments would have the courts close their doors to It will require the President to act and some other special adjustment in the certain groups and issues-especially in immediately to bring down interest rates income statement for the quarter. They the areas of environmental control, and to see to it that sufficient credit is estimated that the actual operating loss school desegregation, emplovment dis directed to those economic sectors and of General Motors was more on the order crimination, and alien's rights-without regions that are now being crippled by of $900 million. That is $900 million in any apparent alternatives for the fash the high interest rates. 90 davs, or $10 million a day for 90 ioning of necessary and proper relief. It is our intention to press this issue straight days. That money was lost by Viewed from the perspective of the with all the strength that we have. one of the biggest manufacturing com complex and difficult issues of constitu I might say that the data released by panies in our country and in the entire tional ad.iudication, the Attorney Gen the Department of Labor todav indicates world. eral's statement last week was no more that the unemployment rate in the The Ford Motor Co. posted a quarterly than a camoaign speech-full of political United States last month rose to 8 per loss of $~34 million, which, again, is an rhetoric critical of the courts, and dan cent. This is the highest level of unem extraordmary amount of money to lose gerously lacking in constitutional princi ployment in this countr.r since the late in such a short space of time. ple. Mr. Smith's speech is unfortunate in fall of 1975. We have not had unemploy Chrysler reported a quarterly loss of that it attempts to discredit the courts, ment as high as 8 percent since that $149 million. These companies are losing and shows an obvious willin~ess of the time. these huge amounts just at a time that executive branch's highest legal officer to Five hundred fifty thousand additional they desperately need to finance massive attack the judiciary for partisan political Americans lost their jobs last month, investments to improve this country's 26928 CONGRESSIONAL RECORD-SENATE November 6, 1981 worldwide competitiveness. So if one con ability. We are calling upon the Presi are like the oil industry that at the moment siders the most recent 90 days of the auto dent to change this high interest rate is doing quite well. industry, it is obvious that we have an policy, to get these rates down, and to I think your interest rate policy is caving in th~ economy. I think it is caving in the economic emergency on our hands, get them down substantially and quickly enough to save these sectors that are auto industry. It is caving in the thrift in driven in large part by the very high stitutions. It is caving in large parts of agri interest rates. being crippled and permanently dam culture. I hear this from my colleagues across The same thing is true with auto deal aged. We are calling upon the President the country. It is caving in small business. ers. Auto dealers are going out of busi to stop further economic destruction that You seem to have no remedy for that. I ness at a record rate. We lost over 2,000 will haunt this country for years and am speaking now generically. The adminis last year. Some of the most well-man years to come. tl"81tion seems to have no remedy for tha.t. aged auto dealerships in the country are I have no doubt at all that, when the I cannot for the life of me understand failing each day because they cannot af President decides to call for lower in why you are holding to this high interest terest rates, he will have no trouble per rate policy at this time, when you have got ford the high interest rates to floor plan major e:::onomic sectors that desperately need suading the Federal Reserve to follow his cars, and to have cars in the showrooms credit. They desperately need capit~~ol. They for people to look at and consider buy lead. In fact, Chairman Volcker recently need interest rates they can afford to pay. ing. testified before the Senate Banking You are withholding that from them. You So the situation we face in that sec Committee that the interest rate policy are saying basically that you are not going tor is absolutely at a crisis point. of the Federal Reserve System is the in to respond to that problem. The same thing is true in another terest rate policy of the Reagan adminis The Slituation is getting worse by the day, basic sector of our economy, the con tration. Thsy are in partnership on this, and I do not understand that. I would like and the Fed is following the approach you to tell me why it is you are holding to struction and hous~ng industry. Destruc this high interest rate policy. tive shock waves spread throughout the to high interest rates that the Reagan Secretary REGAN. Well, high interest rates entire national economy when the hous administration wants them to follow. are the symptom that come along with what ing and construction industry shuts We are saying today that it is time to the disease is. The disease is inflation. As down, as it has at the present time be change that part of the strategy. It is yOIU know, last year inflation was running at cause of the absence of long-term mort time to change the policy mix. a 13, 14 percent range. This year on the CPl. gage money at affordable rates. even in the third quarter we again went back I would make a prediction right here into double digits. I do think that we will It is not sufficient that the oil and gas today on this floor: As events unfold be back in to single dig! ts in this quarter. companies have easy access to credit over the next few weeks, as unemploy That means that we have not eradicated the these days, They are able to finance ment continues to rise, as bankruptcies problem at all. This is a very serious prob their cash flow needs out of the profits continue to multiply in this country lem not only for our nation but for nations they are earning and some of the tax not only of small firms but also of large throughout the world. benefits they have received. They can firms, including thrift institutions and We have to get rid of inflation. There is afford to pay these interest rates. But other financial institutions-it will be no easy way out of it, it is so ingrained in our system at this point, Senator. It has been that gives a false picture as to what is come clearer and clearer that the inter there now for years. To try to get it out true for the rest of the economy. est rate crisis is the central problem, quickly or, having gotten it out in part, to The true picture of what is happen the fatal flaw in the Reagan economic suddenly change courses would be counter ing in the economy is given by todav's strategy at the present time. productive, in my judgment, at this time. So. data on the unemplo:vment rate; 8.5 per we have to stay on that. Mr. President, we are trying to be Now let us talk about interest rates them cent of the people who want to work in cooperative and constructive. That is this country cannot find jobs. That is the selves. As inflation comes down, obviously why we have framed this legislative re interest rates are coming down with them. highest unemployment rate since 1975. sponse in a way that gives the President Interest rates did probably peak in the Au That shows what the administrations the support that he needs to take this gust and September period, and they are off high interest rate policy is doing to rank step, to change this high interest rate considerably from that. Most are off 2 to 3 and file people across the country. policy and to bring these rates down. percentage points. The prime, for exa.mple, This initiative today by 35 Senators is from 20 .5 down to now at least in several can be a turning point. We know this approach can work, and banks to 17.5. The Treasury Bill rate, we The majority of Democrats have sup we are willing to give our support to that were paying close to 16 percent just a couple ported the effort to put a ceiling on Fed effort. But it is time for that change to of months ago. Yesterday, Treasury Bills were at 13.01. eral spending. We had different ideas on be made. Wear~ going to press and press and press in every way we can find to Senator RIEGLE. Let me just stop you. Here priorities. We tried to change those is the problem that is happening. We have priorities. In some cases we were success bring about that change in policy. got a mounting cascade of bankruptcies that ful. In some cases we were not, because Mr. President, I ask unanimous con are taking place in businesses of all sizes we are in the minority. sent that a recent exchange on interest but particularly among small business. I We also cooperated with the adm~n rates between myself and Treasury Sec think very shortly we are going to see some istration's effort to cut taxes. We had retary Donald Regan, which occurred in major bankruptcies or the likelihood of some major bankruptcies among some larger firms. different ideas on tax cuts. We offered the Senate Budget Committee, be printed I am just saying that you are not getting alternatives. We tried to modify the pro in the RECORD. them down quick enough. Now, one of the gram. We tried to strike a balance. In There being no objection, the exchange reasons you are not is that there is not some instances we were successful and was ordered to be printed in the REcORD, enough credit to go around. The Federal Re in other instances we were not success as follows: serve has been veTy tight with the monetary ful. But, in the end, most Senators on policy. Paul Volcker yesterday was before the UNITED STATES SENATE-cOMMITTEE ON THE Banking Committee. His target for M1B for this side of the aisle supoorted the tax BUDGET ON THE SECOND BUDGET RESOLUTION package despite our reservations. the year has been 3.3 percent, and the aotual FOR FISCAL YEAR 1982 performance has been at 1.1 percent. That We did so because we felt that, on Chairman DoMENICI. Thank you, Senator. is how far off target they are. balance, it was necessary to try to move Senator Hart? Senator Riegle? You have go•t these major merger efforts the country in a more positive direction. Senator RIEGLE. Thank you, Mr. Chairman. and these corporate takeover efforts that are However, we are saying today that Mr. Secretary, almost every day we pick up sopping up tens of billions of dollars of what the high interest rate part of the admin the business page of any major newspaper in credit there is. The people who need it to the country, and it is a deluge of bad news. survive-and I am talking no-w about small istration's policy is not acceptable. We I do not have here with me the front page businesa. the auto industry, agriculture, the are saying that it is clearly wrong for of the business section in yesterday's Wash construction Industry-are dying. I just do this country. We are saying that we as ington Post. but it was one horror story after not understand how you can respond by Democrats, overwhelmingly cannot sup another in terms of the picture in the auto saying that that is the medicine that we port that policy. We feel it has to be industry or with the S&Ls or with our trade have to take. If it is going to k111 those pa changed and changed now. deficit and other i terns of that kind. tients and cave in that part of our economy, how can we possibly hope to come out ahead? We are laying out a responsible way I would just like to make an observation, and then I would like to ask you to respond. I do not understand how you can cripple for that to be done. We are calling upon I think the economy at the moment is in and, I think, permanently damage major sec the President of the United States to very s'erious trouble. It is very uneven. There tors of this economy with this high interest use his leadership, to use the power of are some sectors that are in desperate condi rate policy and ever hope to come out ahead. that office, and to use his persuasive tion, and there are others that, as you say, I just do not understand that. November 6, 1981 CONGRESSIONAL RECORD-SENATE 26929 Secretary REGAN. Well, we are not deliber interest rates down in the correct way by Today we have got credit allocation. We ately trying to cripple. We are very sym merely insisting that we pump more money are mtioning credit by pri-ce. If you can af pathetic to these industries. We wish we in to the economy. As the markets now stand, !ord to pay the hig.h rate, you get the money. could do it faster. We do not know how to do U \\e were to pump a lot more money into The oil companies and some others who are it faster except to pump in more money. Cer this economy, everyone would believe that in ve.ry strong financial po3ition right now, tainly, if you pump in a lot more money, you we had gi;ven up on the fight on inflation they can get, really, all the money they need. are going to get inflation back again-- and that we are going right back to where We .are seeing it in these takeover bids, these Senator R:u;GLE. Let me give you a sugges we were. corporate raid•s, and so forth. tion if I may. Senator RIEGLE. I am not suggesting that The problem is that most of the economy Secretary REGAN. Certainly. I would wel is the only thing to do. I think that has to that desperately needs the money to finance come it. be done, and that has to be done urgently. working. capital, to stay in business, plant Senator RIEGLE. I think there are some I think at the same time we need fis::al modermza.tion, productivity improvement, things we can do. First of all, I think the Fed tightening. We have got sacred cows in this cannot get the money because there is not can get within its targets in terms of money budget that you know that we have not enough and they cannot afford to pay the growth. I think the rresident needs to say taken a budget knife to: the massive in rates. Frankly, what I am hearing you say that. He is not saying that. In fact, Volcker creases in det'exu:e spending, the tobacco sub today is that there is really nothing you can yesterday indicated that the Reagan Admin sidies, the \\e.stern water projects, the Clinch do about it, that that is part of the pain we i<>tration supports exactly what the Fed is River breeder reactor. The budget is loaded ha.ve to suffer, and that damage is just some doing. I thinK you have got to give them a down with items that need to have the thmg that the Reagan Administration is pre different signal. I think the President has to knife taken to them. pared to accept. do it. The time is now for that to happen. We need some fiscal tightening. I think Secretary REGAN. I would not agree with I also think you are within your rights to maybe that even includes-you talk about that, Senator. I think that what we are do ask that these major billion-dollar alloca re.enue enhancement. I do not know where ing here is saying let the free marketplace tions of credit for mergers and for corporate the words tax increase went to. I mean, work. It always has worked in the past. takeovers and so forth, that that be put aside that is obviously gimmick language. If you Senator RIEGLE. Well, Mobil announced for now. '!hat is not what this country needs. want to use it, that's fine; I do not think today- That is not restoring jobs. That is not re you are fooling anybody. But I am in favor Secretary REGAN. We do not think that vitalizing the economy. There is no supply of seeing additional fiscal tightening as a govemmerut controls are the answer to it. side thrust in that. And why not say so'! Why tradeoff for monetary easing, but you have Senator RIEGLE. Mobil today announced not come right out and say so? Why don't got to get it soon. If it comes in six months, its takeover bid for Marathon Oil. Is that you put your foot down? Why does not the if it comes in the first quarter of next year, your notion of the direction the country !'resident put his foot down in this area? that is not going to work; and you are go needs to take right now? Does that really go The unemployment rate is rising at the ing to have this thing caving in on us in a to the heart of our economy problems? Is present time. For every 1 percent increase in way here where there is going to be mas that what you want to say to unemployed unemployment you are gomg to see the aef sive damage to the national economy that is people? Is that what you want to say to icit balloon here by about $30 billion. I going to be on our backs for years and years these sectors that are in distress, that the think that does matter. I think we do have to to come. money that they need is going to go for this get the deficits under control, but we cannot I have to believe that you see that risk. kind of activity? I hope that you can do begin to do that if you do not get these rates Secretary REGAN. Well, I see the risk, ob better than that. down and get some credit into these credit viously, Senator, but I also wish you well Secretary REGAN. Well, walt a minute. starved sectors. in getting these budget cuts through. I Where is the money coming from that Mobil You are going to have to do it. You a.re think that is one of the reasons the chair i::. using? man has me here today, to make certain Senator RIEGLE. That is a very good ques either going to have to do it with jawboning, tion. or you a.re going to have to use some form of that we are all singing from the same credit targeting. Now, I do not understand Secretary REGAN. Is it a stock swap? I do hymnal. not know the terms. It has just been an why you are reluctant to do it. Senator RIEGLE. But here is the problem I mean, I have got to believe that you see that we face. Even the 'Repu'blicans now, nounced. If they are swapping stock, what even the Republicans who were supporter.;; is the effe::t on the credit market? the damage even if others do not. Senator RIEGLE. Well, the lines of credit Secretary REGAN. Well, first of all, Senator, of the President have not been able to agree that have been lined up by the oil com what you have got to look at is, when you on the strategy for the fiscal tightening. Of course, that party is in control here, a.nd it panies: Texaco, 5.5 billion; Conoco, 3 billion; talk about these massive takeovers and the Ci·ties Service is 4 billion; and Mobil is a credit allocation there, look what happens to has very great strength in the House and 6-billion-dollar figure, 5.7, just short of 6 that money. The money is borrowed, cer there is not agreement on that side. billion dollars. I mean, this is on-the-shelf What I am saying is the inte·rest rates tainly, but then it recycles itself. Who does credit, my friend. This is money that small it go to? It goes to the stockholders or to cannot wait. I do not thlnk it is sufficient business people a.cross this country desper the bondholders of the company being for you to stand off to the side and say all ately need. They need it on Main Street in taken over. They, in turn, have to do some these business failures .and all •this tremen every city and every State in this country, thing with that money. They reinvest it. So, dous damage ha.;; to go on because we Me and they are not getting it. powerless to do anything. I think you need the money does get recycled. I think you are enou~h of a free enterprise So, to the extent that there have been a response on the monetary side now. I advocate to understand that there has got to these takeovers-and most of the takeovers think you are going to have to do something be some equity and some balance. You just to bring the.se ra.Jtes down and bring them are not for cash, by the way; they are usually cannot ta.ke care of the big JniYS and let stock swaps, something of that nature. And down within the next severa,.l weeks. More everybody else go down the drain. there you are just exchanging pieces of than that, I think you a.re going to 'have to Secretary REAGAN. Well, we are far !rom money. go .beyond to some form of credit targC~tlng. that, Senator. You would have to say that Senator RIEGLE. Let me give you some There arc d-ifferent approaches that have been used in the past. People even like there was not enou~h credit to go around-. numbers just on the auto industry. General Senator RIEGLE. There is not enough credit Motors reported a quarterly loss $468 mil Arthur Burru have not been averse to doing that in the past when it was needed to get to go around. That is exactly the problem. lion. The Wall Street Journal says that the Secretary REGAN. I am suggesting there is. actual operating loss was closer to $900 mil money into credit-starved sectors. I think There is plenty of credit available, but in lion. That is for 90 days. That is losing $10 you have got to face that problem. the fight !l?ainst inflation-. I think it is a transition oroblem. We million a. day. Senator RIEGLE. At orices people cannot Ford reported this week a $334 million have got these enormous international eoon omic changes that we are a.djusting to. But affoTd. That is the problem. loss. Chrysler reported yesterday a loss of Secretary REGAN. Prices are high. But $149 million. we have got to get through this transition. I think you have got to be more fiexibile. I would you trade that oft' for inflation? My question to you is, how long can that think you have got to respond to that prob Senator RIEGLE. I do not think that is the go on? I mean, you are a. practical person in lem while you still have time to do it. choice. terms of having lived that in this world of Secretary REGAN. My only caution there, high finance and economics. You know as Senatoor, is to re·call what hoaprpened about Finally, Mr. President, I want to note well as I do there is no way that can con a little over a year and a half ago in the that on the 20th of November. we will be tinue for more than a few more weeks before early part of 1980, when we suddenly lurched inviting to Washin~ton people from we are going to have disasters on our hands into credi•t c·ontrols. We almost blew the across the country who know this inter all over the place. It is in the farm equip economy right there and had to undo them est rate crisis at first hand. We will hear ment industry as well as the auto industry again with•:n a period of a couple of months. and in a. host of other areas. Somebody has I would .be very reluctant to intervene in from representatives of various sectors got to blow the whistle, and I think you a.re the marketplace. that are being so badly hurt-people the person to do it. Senator RIEGLE. My friend, look-. from agriculture. from real estate. from Secretary REGAN. Well, I think that what Chairman DoMENICI. SenSJtor, the last the construction industry, from the hous we have to do, of course, obviously, is to question please. ing industry, from the automobile sector, get interest rates down. But you do not get Senator RIEGLE. All right. from auto dealers, farmers, small busi- 26930 CONGRESSIONAL RECORD-SENATE November 6, 1981 ness people, small manufacturing people. dous sums of money, of credit that houses would be slight because GNMA Representatives of a broad spectrum of would be available to finance those merg loans account for less than 5 percent the American economy will be participat ers. That comes out of the system and of the financing of new housing con ing in this hearing. It will last the better means that in a time when money is struction." part of a day. This hearing will enable being restricted by this administration Mr. President, it is interesting to note, those people who are directly affected to and by the Federal Reserve Board, there I think, what that 5 percent makes up. express in vivid, first-hand terms what is is simply no money available at the That 5 percent is not the $250,000 houses actually happening as a result of these lower end of the economic spectrum. and up. None of those is in that 5 per high interest rates. The hearing will Mr. President, what we are saying in cent. That 5 percent is made up of loans, make it absolutely clear why they are this resolution is that the President is FHA mortgages, to the middle class being forced out of business and why we calleci upon to do something on a volun couples, to the young people who are are seeing one economic sector after an t:ary basis, and do it quickly, to see that trying to get their first house. GNMA other on the verge of collapse. It will be we have credit made available to people financing operations have allowed the clear to all why this administration's at the lower end of the ladder, and that savings and loan institutions to turn over rigid insistence on high interest rates is that credit be available at some kind of their money, allowed all the lending in unnecessary, is unjustified, and is doing an affordable rate. stitutions to turn over their money, on great damage to this country. Unless a clear signal comes from the these low-cost loans. I should like to yield to Senator CHILES administration that something has to be Mr. President, I ask unanimous con who is acting today as the principal done by the Nation's lending institu sent that the New York Times article I sponsor of this legislation so that he tions--and the President has many referred to, be printed in full at the end might address this issue. means at his disposal to deal with the of my statement. PROTECTING CREDIT FOR SMALL BORROWERS provision of credit--unless we can see something happening in tiha.t regard, the Mr. CHILES. Again, Mr. President, Mr. CHILES. Mr. President, I thank small borrowers of this country are sim this withdrawal of $16 billion of credit the distinguished Senator from Michigan ply not going to have any relief. who has taken such a lead in this area is being proposed at a time when we by bringing together a number of us to Also in this resolution we call on the see savings and loans going out of busi try to determine how we can come up President to send a clear signal to the ness, being merged, facing losses every with solutions to the tremendous prob banks that less money should be diverted single month. But the administration lem that we find so many of our busi for these conglomerate takeovers and wants to take out the one piece of assist nesses and our people facing in the fact mergers, mergers that everyone knows ance that we have had. And the reason that credit is not available to them in do not create a single new job, do not get for this appears to be that we should re many instances and it certainly is not us any new energy, do not develop any duce the amount of money that the Gov available to them at a price they can additional capital formation, but are ernment is borrowing on the credit mar afford. simply putting together and having the kets. Now that appears to make sense, So, Mr. President, I am pleased to big take on the less big or the little and because if too much demand is made on offer this resolution today on behalf of eating them up and taking money out of the credit markets, that pushes inter myself, Senator SASSER, Senator MEL the system which certainly dooms any est rates up. CHER, Senator RIEGLE, Senator ROBERT C. chance that Reaganomics would have to But should we not look at what the BYRD, Senator NUNN, Senator BOREN, work. demand is on the credit market and Senator JoHNSTON, and Senator PRYOR, As we look to see the need for this, we should we not determine what part of a total of 34 Senators from our side. only have to look at today's news reports that demand is productive? We should I send to the desk the joint resolution, to see the tremendous need to find a think about what needs to be done for submit it for introduction today. better direction for credit policy, where the country, and what part of the de The PRESIDING OFFICER. The joint this resolution would point us. Unem mand for credit is not productive, what resolution all the way to be the direction this administration is eatmg up each other and eating up other back to timber and to the man who cuts going. corporations, and we see that same thing the timber, the lumberjack. At a time Mr. President, we have heard a lot of happening in the case of defense con when the housing industry is just suffer talk recently about what we have to do to tractors where you see the LTV-Grum ing and has almost come to a standstill improve our productivity and compete man merger effort taking place. You see because of the high interest rates, now better in world markets. When I chaired Conoco devoured by DuPont, with two is the time that the administration has a special subcommittee on productivity, other corporations, one the Canadian said "We are going to cut back on Fed we found that capital investment is only cor~oration of Seagram, attempting to eral credit support." What a time to part of the problem. We have a real prob get mto that ft.ght. make a move like this. lem with a lack of innovative manage In each of those instances. Mr. Presi It is interesting to note, the news ment and worker morale. When a com dent. you see the banks setting aside paper says, that "The White House said pany is taken over by a conglomerate $5 billion, $10 billion or other tremen- today the effect on construction of new holding company, you usually make this November 6, 1981 CONGRESSIONAL RECORD-SENATE 26931 problem worse. All too often, the new in 1980. Subcontractor failures were more While we do not specify a "dual prime management knows nothing about how severe, with the number of failures up by rate" in this resolution, that is what we 127 %. This is particularly Eigniflcant since have in mind by the phrase "affordable to manufacture and sell the product; all the comparisons for 1981 are being made they are concerned about is milking the with 1980-the worst year for construction prices appropriate to the various regions cash fiow for short-term profits. failures on record. If interest rates do not of the country and type of borrower." When people up and down the line see fall in the near future, the unfortunate re We want the administration and Federal their companies taken over by a con sult will be that many more businesses will Reserve to have the flexibility to apply glomerate, they know that decisions will fail. its expertise to come up with the most be made strictly on a financial basis, The precipitous drop in housing starts has practical guidelines. We also instruct the without regard to the quality of the prod had a significant impact on the overall econ President to consult with representatives omy by raising the unemployment rate in of the small business community, the uct, and morale goes down. We have to the construction trades. The official con start turning that trend around if we are struction unemployment rate is 16.3 % and housing industry, auto dealers, and going to improve productivity. over 828,000 wage and salary workers are out small farm operators to insure that the Mr. President, we must stop this dual of jobs. guidelines are practical and effective. credit system that is engulfing our First-time homebuyers in particular have Mr. President, I ask unanimous con economy. been priced out of the housing market by sent to insert in the RECORD at the end Mr. President, nowhere is the impact high interest rates. Each one percent in of my statement a copy of the voluntary crease in interest rates puts a median-priced guidelines issued in 1973, to give an idea of this credit crisis seen more clearly home out of the reach of over 860,000 fam than in the housing market. Housing ilies. At the current mortgage interest rate or of how fiexible such a sytem can be. sales have declined at the worst rate since 17 percent, a $60,000 mortgage carries a prin The PRESIDING OFFICER. Without the depression. New housing starts are cipal and interest payment of $855 per objection, it is so ordered. down to about 1 million a year, which is month. Other housing-related expenses bring de policy a central part of their economic enacted laws ______-80 -90 -100 cline in inflation so far has been due to plan, and refuse to budge an inch. Just lower food and fuel prices. A bad harvest last week I asked the Secretary of t~e in other parts of the world, or a supply Treasury point blank whether they Mr. CHILES. Mr. President, the Pres interruption from any one of the Middle wanted the Federal Reserve to loosen up, ident's new package announced in Sep East oil countries could throw a huge even to meet its own money supply tember, does not even go halfway toward monkey wrench into the CBO and ad targets. secretary Regan said, "No," they eliminating those deficits. The numbers ministration economic projections which do not want to see anv loosening up at are just too great. If we passed the Pres are based on the optimistic assumption all. And that is after the President has ident's cuts in defense and exempted that the world will work peacefully and said that we are in a recession. social security and medicare from cuts, smoothly for the next 3 years. The huge Mr. President. if high interest rates are we would have to cut 36 percent out of tax cuts have just left no margin for the problem, why do we not just bring all remaining programs to balance the error in fiscal policy. While we all live them down? Unfortunately, I do not budget in 1984. That is more than one with uncertainty, the credit markets think that is possible to do in the short third from everything, including veter charge a price for it. I would guess that term, and small business, housing, and ans' pensions, education programs: high about 2 percent of the 5-percent spread small farmers cannot survive until we way funds, food stamps, and law en between tnfta;tion rates and interest rates get to the long term. forcement. That 36 percent would have is that uncertainty or risk premium. Some people say that if the Federal to be on top of the major cuts we have One budget committee witness from a Reserve just eased up on t he money sup already enacted. I just do not think the major Wall Street investment firm re ply, rates would come down. While I public wants that level of cuts, which cently estimated the risk premium as 4 agree that the Fed has been too rigid in means dismantling most of Government. percent. its restraint. running the printing presses So unless the President and the majority full blast woul.d just bring us more infla of Congress are willing to roll back a Mr. President, I think the time has tion in a year or so. When the credit significant portion of the massive indi come that we must speak to the Ameri markets saw loose money and large vidual tax cuts, we are not going to get can people-and this administration deficits, they would expeot tremendous close to a balanced budget. must-and let them know that it has a inflation and long-term rates would sky concern for the plight that they are in; rocket. And that would generate extra Mr. President, I ask unanimous con that it is going to try to recognize that pressure in the short-term market, as sent to insert in the RECORD a table show plight and it is going to try to marshal borrowers refused to pay fantastic rates. ing how much we would have to cut if the forces and the assets of this country We saw this just 2 weeks ago, when the we exempted various programs, such as to try to see that they are treated fairly; Fed seemed to be easing up for a few defense and social security. that we do not have a dual economic sys days. While short-term rates came down There being no objection, the table tem where those at the top can get all a little, long-term rates actually went up was ordered to be printed in the RECORD, of the credit they want, but everyone else higher. as follows : is cut out and cut off. We need to end this November 6, 1981 CONGRESSIONAL RECORD-SENATE 26933 dual credit system and see that the small tant that we do something and we do 7. Rates charged by a commercial bank on businesses of this country, the small something now. loans to large firms may respond flexibly to We feel that the resolution that 34 of changes in open market interest rates. By farmers, homebuilders, home buyers, and keeping the "large-business prime rate" realtors are given their fair share. And us are sponsoring here is our statement consistent with the cost of borrowing from that is what we are doing with thi3 of a workable approach. alternative market sources, the recent large resolution. Mr. President, I say now to the Presi diversion of financing from the commercial Mr. President, I hope that we can come dent of the United States: We want to paper ma.rket to banks would be ha1ted and together on this, that we can see that help. We want to be part of the team. tendencies toward eXICe5Sive amd unhealthy We want to participate. You have said expansion of bank credLt would be mode this resolution is passed, and that the rated. President will come up with a plan. I in your speeches to the joint sessions of think this is a plan that the congres Congress, "Give us your ideas; be a par 8. If an increase in the "large-business ticipant." We have. We have participated prime rate" occurs, lt should be made in sional leadership should join him on. We moderate steps in order to avoid disruptive recognize that the fiscal side of this is in the spending cuts. The vast majority market effects. of us on this side of the aisle participated just as important as the monetary side. 9. Rates charged by a commercial bank to Certainly we have to take into consid in passing the tax cut. small business and farm borrowers should eration what should be the size of tax Now, Mr. President, we want to par remain at levels no higher than those pre cuts: Is there going to have to be addi ticipate in helping you find a solution va111ng on the date these criteria are issued tional income tax raises? What should to interest rates, to try to see that we unless an increase can be fully justified by have credit available at a price that can increases in costs. If increases in these rates we be doing about our spending proposals be afforded by the many people in our occur, they are to be decidedly smaller, and as we look into the out years? sectors who are being squeezed out so are also to be made less frequently, than But while we are doing that we have that we can keep this recession from changes in rates on loans to large firms. to see that we treat fairly the people that being large and deep and so that we can 10. Interest rates charged by banks on are now trying to borrow. If they cannot home mortgage loans and consumer loans get this Nation's economy moving agaln. should remain under special restraint. They borrow now, they are go:ng to be bank Mr. President, I am delighted to join are to continue relatively stable even if the rupt. They cannot wait a year, they can with my colleague from Michigan and "large-business prime rate" and associated not wait 6 months, they cannot wait 18 32 other Senators in supporting this res rates move up significantly. months or 2 years for the economy to olution and hope we can move to its 11. Any increase in rates to small business turn around. They have to be able to speedy adoption by the Congress. and farm borrowers, to home mortgage bor exist now. ExHmiT 1 rowers, and to consumer borrowers must be We see in the paper today again, Mr. [From the Committee on Interest and .1ustlfied by increase in the cost of lendable President, that more and more talk is funds and other operating costs related to Dividends] the commercial banking function, to the coming from the administration that the CRITERIA ESTABLISHED BY THE COMMITTEE ON extent that such increased costs are not otr recession looks like it is going to be INTEREST AND DIVIDENDS FOR INTEREST set by higher earnings on large business deeper than they thought, that it may RATES CHARGED BY COMMERCIAL BANKS loans and other loans and investments. Any be more severe, and it may last for a 1. A major purpose of the criteria described increase in rates justified by costs should longer period of time. I am afraid that telow is to protect small business and farm not be unduly concentrated in any single that is just the beginning and that we borrowers against burdensome increases in category of loans. could find ourselves on the border of interest rates, and yet make it possible for 12. Since under the current economic wh9..t could be a major recession. rates on loans to large national firms to stabll1zation program, all segments of our respond flexibly to changes in money market If that happens, it is going to happen society-business firms and wage earners conditions. It is not intended, however, alike-are called upon to forego for the because we have failures at the small either in the case of loans to large firms or sake of the general welfare some of the earn end of the economy, the small business. to small firms, to interfere with normal ings that they might otherwise have realized, For the longest time I think the admin business practices relating to differentials banks should accept similar restraints. istration's economists have said there is in interest rates that reflect credit risk and Whlle present criteria provide for fiexib111ty great strength in the economy because similar factors. 2. Major corporations ordinarily have ex in the "large-business prime rate," increase they were looking at those major corpo tensive banking relationships across the in a bank's entire structure of lending rates rations, they were looking at energy, and country. The "large-business prime rate" is must in no instance lead to undue increases they were looking at defense contractors. to be understood as the rate charged by a In the bank's profit margin. But they are not looking down the line commercial bank on short-term loans to 13. If increases in interest rates on loans to the failures that will come. And as large businesses with the highest credit occur, they shall not raise the bank's over those failures come at the lower end of standing. This rate, which corresponds to alJ profit margins on domestic operations the economy, they tend, after a while, what is now usually termed the prime rate, (excluding revenues from service functions generally will apply to borrowers who have such as trust departments and data proc to pyramid up. They tend to affect the access to national money and capital essing) above the average of the best two thinking of every purchaser, of every m:arkets. years in the four preceding calendar years. consumer, who, when he sees this small 3. Small businesses and farms normally For purposes of this test, the profit margin businessman next door failing, when he are restricted to local banking sources and Is defined as the ratio of net operating in recognizes that his business is on the do not have access to national money mar come, on a fully taxable equivalent basis verge of failure. is not going to buy. He kets. The "small-business prime rate," which before income taxes and securities gains or is not going to increase his productivity. will apply to such borrowers, is to be under losses, to gross operating income on a fully stood as the best rate charged by a bank to taxable equivalent basis. He is not going to do anything new. Then its most credit-worthy local customers. This we see this downward momentum that 14. Commercial banks are to continue to rate may vary from bank to bank. meet legitimate credit needs of home buy just feeds off of itself. 4. The interest rate charged by a commer ers, consumers, small business, and farmers. Two-thirds of the jobs in this coun cial bank on a business loan, whether to a Periodic reports wm be required to assure try are·created by small business. So you large or small firm, is part of its structure that these needs are being met. can have a boom at the upper end of of rates reflecting de<:\'ree of risk, size of loan, the sector, but if you are having small and other factors. This structure is to be ExHIBrr 2 business failures, if you are having un based on the "large-business prime rate" in (From the New York Times, Nov. 6, 1981] employment, you are going to kill the the case of large borrowers, and on the SIXTEEN-Bn.LION HOME LOAN SUPPORT AMONG "small-business prime rate" in the case of CUTS REAGAN ORDERED economy. Every small businessman I small businesses and farms. know is telling me he is having to lay 5. For present purposes, a small business (By Edward Cowan) off people, he is cutting back, he is re is any domestic-commercial, industrial, or WASHINGTON, Nov. 5.-The White House trenching, and he is trying to get him agricultural-borrower whose total borrow disclosed today that President Reagan had self in shape so he can survive. As he ings outstanding at any one time over the made a $16 blllion cut in Federal support for oreceding 12 months (exclusive of long-term loans to purchase homes as the centerpiece does that, he lays off people. And. of real estate mortgage debt) did not exceed of a larger effort to curb the Government's course, we know what happens with that. $350,000 and whose assets do not exceed $1 appetite for credit. They go on unemployment. They start million. This de·finition covers the great ma In all, the President sent orders to Fed drawing food stamps and these kinds of jority of business establishments and farms. eral agencies to curtail loan guarantees by pro~rams that add tremendously to our 6. Banks may extend application of the $20.3 blllion between now and Sent. 30, 1982. deficit and it deepens and widens the small business rate structure to any firm re The list included cuts for small business, recession. So it is tremendously impor- gardless of slze. rural development, exports, fishing vessels, 26934 CONGRESSIONAL RECORD-SENATE November 6, 1981 trade adjustment, merchant ships and rail ing lasting damage in such key sectors of the The President shall report to Congress rehab111tation. economy as: housing where prohibitive mort within thirty days concerning the effect of The White House also called for complete gage interest rates are preventing almost all his actions in protecting an adequate fiow elimination of guarantees for biomass en Americans from buying homes and are crip of affordable credit to small borrowers and ergy development, defense production and pling the homebuilding, lumbering, building reducing excessive interest rates. community development. supply and other industries that contribute In addition, the White House said that to home construction; automobile manufac Mr. RIEGLE. Mr. President, I thank Mr. Reagan wanted to reduce guarantees is turing where high interest rates are prevent the Senator from Florida for his leader sued for rural electrification and telephone ing consumers from financing basic car pur ship on this issue and for the concerns service by $1 billion, or nearly 20 percent, chases, are placing unbearable inventory which he has expressed today. but could not do so without legislation. costs on car dealers and are forcing manu I see the Senator from Tennessee is facturers to delay vital investments in more INTENTION STATED PREVIOUSLY present. He has been a principal author productive plant and equipment; farming The White House list of cuts in loan guar where interest rates are the largest factor in in drafting the language of this resolu antee commitment to be issued in the fiscal the farm cost-price squeeze and are frustrat tion. I salute him for that leadership year 1982, which began Oct. 1, provided the ing the f..;.,1lity of small farmers to finance and that effort. I would like to yield to detail to support the President's Sept. 24 land, eqipment, feed and fert111zer; and small him at this time. statement of intentions. business where many well managed firms are Lawrence A. Kudlow, chief economist of The PRESIDING OFFICER. Under being forced to close because the high cost the previous order, the Senator from the omce of Management and Budget, told of borrowing makes it increasingly difficult reporters that "this is a first step" and that Tennessee is recognized for not tv ex to finance necessary inventory, minimum ceed 15 minutes. further curtailments would be made for the working capital and investments needed to fiscal years 1983 and 1984. remain competitive; and Mr. SASSER. I thank the distin The Administration wants to shrink Fed Whereas high interest rates are cutting guished Senator from Michigan for eral guarantees of private loans, Mr. Kudlow through the entire economy, unleashing such yielding. said, because such loans, no less than Treas early signs of a severe recession as unemploy Mr. President, I rise today in strong ury borrowing to finance the budget deficit, ment mounting in a large number of indus support of this resolution which expreses "pre-empt private capital and savings." tries; and business bankruptcies rising at The Reagan Administration, like the Car the sense of the Congress that the Presi alarming rates; and dent of the United States should take ter Administration, has said that so-called Whereas excessively high interest rates are off-budget borrowing by the Treasury and having a damaging effect on virtually every immediate action to bring down interest the issuance of Federal loan guarantees as American household, preventing them from rates. a substitute !or Federal dollars had grown buying homes, cars and furniture, from Mr. President, interest rates have rapidly in the 1970's and gotten out of hand. sending their children to college, from main driven this country into an economic The White House contended that by bor taining their family !arm; and recession; if they continue at the present rowing directly and by assisting priv·ate bor Whereas high interest rates are inflation rowing, Wash·ington now was "absorbing" high levels, this economic recession can ary since they must be passed along from be expected to deepen and to deepen and more t·han 40 percent of the supply of credit business to consumers as high prices: and avaUable to non-financial bOIITowers, against Whereas high interest rates choke off the to deepen, and with a few critical busi 5 percent from 1955 to 1969 and 15 per steady production of basic goods such as ness failures here and there we could cent in the 1970's. beef cattle and houses, leading to higher be right back where we were in the Mr. Kudlow asserted that by reducing its prices in future years: 1930's. High interest rates are killing role in credit markets, the Government Whereas massive sums of credit continue this administration's economic recovery would help make credit generally more avail to be diverted to nonproductive uses, such program. Any discussion and any talk able and would contribute to a decline 1n as conglomerate mergers and corporate take interest rates, :all of which would help home of an economic recovery program in this overs; and, combined with reduced enforce country, of putting people back to work, buyers and business borrowecr-s. Howeve!l", ment of anti-trust laws, this corporate credit those who lose access to subsidized interest policy is shifting control of business away of modernizing our means of production, rates--or to all credit--were expected to reply from small businessmen and farmers toward of making us more competitive both that the disadvantages to them would far a .few large corporations; and domestically and on the international outweigh the benefits. markets is simply phony until something The largest single curtailment was $16 bil Whereas an infiexible monetary policy lion, or 25 peroent, .for mortgage guarantees supported by the Administration has added is done to bring down interest rates in l:s:sued by the Government National Moa-t to the crisis in the credit markets; and this country-until a a level is reached gage Association, or Ginnie Mae. Its guaran Whereas these devastating credit condi where business can once again do busi tees make 'blocks of mortgages more attrac tions constitute an economic emergency ness. tive to investors. thereby bringing fresh which requires immediat3 action: Now, Real GNP growth has been negative money into financial institutions that Ol"lgi therefore, be it Resolved by the Senate and House of the second and third quarter of 1981. It nate home loans. threatens to show up to a 4-percent Jack Carlson, executive vice president or Representatives of the United States of the National Association of Realtors, said the America in Congress assembled, That the decline by the last quarter of this year. loss of Ginnie Mae guarantees would make it President in cooperation with the Board of The interest rate recession means that harder for 'buyers of existing houses to find Governors of the Federal Reserve System the administration's projections of eco financing. The White House sMd that the shall by November 25 exercise appropriate nomic gr9wth in the next 2 or 3 years effect on construction of new houses would authorities to assure an adequate fiow o! will be substantially lower than origi be slight because Ginnie Mae loans account credit to small borrowers at affordable prices. nally forecast. "for less than 5 percent of financing !or new Particular attention should be paid to re ducing home mortgage rates, increasing em Mr. President, I note today that the housin.g construction." unemployment rate stands at 8 percent Other large cuts included $1 b1llion, or a ployment, reducing the excessive financing 20 percent reduction, for t he Small Business cost for auto purchases, halting the rapid on a national basis. It stood at 8 percent Admlnistraltlon and $1.2 billion, or 14.6 per rise of small business bankruptcies and re in my State for a number of months, so cent less, !or the Export-'lmport Bank. ducing the excessive cost of farm equipment this is nothing new. But the Secretary of Offiola~s said that thev believed the Presi and supplies. Such actions shall include the Treasury, Mr. Regan, was predicting dent's author.f'tv to limit loan guaranrtees did voluntary guidelines appropriate to various some weeks ago that the unemployment not violate antl-imooundment provisions of regions of the country and type of borrowers, rate would not get to 8 percent until the 1974 budget act 'but thaJt the question which may be altered periodically as neces sometime, probably, in midwinter. Here had not come up before and might be tested sary to achieve these purposes. we find, in the month of November, some in the courts. The President shall also take aporonriate actions to limit the large-scale diversion of 2 or 3 weeks after that prediction, that Mr. CHILES. Mr. President, I ask credit to nonproductive uses, such as con the unemployment rate has already unanimous consent that t.he text of the glomerate mergers and corporate takeovers. jumped one-half or 0.5 of 1 percent and joint resolution be printed in the REcoRD. The President in cooperation with the it is hitting 8 percent. There being no objection. the text of Board of Governors of the Federal Reserve High interest rates are causing major the .ioint resolution was ordered to be System shall take non-inflationary actions havoc with our attempts to bring the printed in the REcoRD, as follows: necessary to reduce interest rates which are Federal deficit down to the levels that currently at levels abnormally above the were projected by the administration. S.J. REs. 120 current rate of inflation. Mr. President, I serve on the Senate Whereas the foremost domestic ~oals of In deciding upon the anpropriate actions the United States are healthy ~rowth of the to assure the ava11ab111ty of credit to small Budget Committee, along with the dis economy and prosperity of the American borrowers, the President shall consult with tinguished Senator from Michigan Virginia. Mr. RIEGLE. I thank the minority within 120 days. The policy change which Mr. ROBERT C. BYRD. Mr. President, leader for his statement today, for his the resolution would effect will give us there has been a great debate for the last important leadership on this issue and an immediate response. year. Politicians, pundits, economists, for his efforts in the fight to bring down Within 120 days we would see Senate and businessmen have asked, "Will the interest rates. Joint Resolution 120 producing a real administration's economic plan work'?" I only want to make two or three clos improvement in the economy, pulling us Some of them are beginning to wonder ing comments. I know my colleague from out of this recession and beginning to get now, some of us are beginning to wonder, Oklahoma is here and I know he has an people back to work and stemming this whether or not we have asked the wrong other matter he wishes to address today. hemorrhage of bankruptcies that we see question. Perhaps we should have asked, The PRESIDING OFFICER China-the People's Republic of ously "no." Mr. PROXMIRE. Mr. President, under China, Red China-we are on the verge I have worked to bring across-the the special order, am I next speaker? of selling them military equipment. board tax relief to all Americans. If we The PRESIDING OFFICER. The Sen It is true, Mr. President, that the have to spread out the 25-percent in ator from Wisconsin has a special order Chinese and the Russians are now op come tax reduction over an additional fa: not to exceed 15 minutes and he is posed to each other. It is true that the year or two, our citizens would prob recognized for that. Russians have troops on the Chinese ably accept some delay if it becomes Mr. PROXMIRE. Will the distin border. We know how ephemeral these absolutely necessary to balance the guished Senator from Oklahoma yield things can be. We know how, tomorrow, budget. to me the remainder of his time? these two massive Communist nations No one can or should understand it Mr. BOREN. Mr. President, I shall could be, as they were for so many years, if the income tax cut is in essence paid be happy to yield as much time as I united against freedom and against this for by huge tax increases on the average have left on my own individual order countr:v. Yet we are contemplating sales citizen which he cannot afford to pay. to the Senator from Wisconsin. of military equipment to the People's If the President decides to reexamine The PRESIDING OFFICER. The Sen Republic of China. the revenue side, there are other areas ator from Oklahoma also has the time Mr. President, the world is being November 6, 1981 CONGRESSIONAL RECORD-SENATE 26943 h~oked on the anns sales promotions of in 1980, the United States outdelivers crease in dollars in spite of inflation the United States and the Soviet Union. our allies by 2 to 1 over the French; 9 to 1 there is probably a far greater increas~ Consider the two tables behind me. The over the British; 6 to 1 over West Ger in the capacity to kill. first deals with actual arms deliveries to many; and 11 to 1 over I~aly. Again looking at the statistics the the Third World. The second indicates Among the Warsaw Pact nations, the non-Communist world has re~ched the total dollar amount of sales agree Soviet Union supplies 87 percent of the agreement on $25 billion in future de ments with the Third World by supplier total. liveries in 1980 or 61 pereent of the total nation. Thus the two big superpowers, the worldwide. That is for the non-Com Unfortunately, Mr. President, these United States and the Soviet Union, dom munist nations, the free nations. tables only deal with the period through inate arms deliveries. The new challenger The United States accounts for $9.6 1980. As far as deliveries are concerned, on the scene is France, which has greatly billion of the $25 billion total or 38 per of course, it takes a number of years after expanded its arms export program. c~:nt . The French are nearly as high agreements are signed and before the de Actual deliveries, however, are only with $7.9 billion or 31 percent. The Soviet liveries take place. But on the basis of Union accounts for 93 percent of the $16 representative of prior agreements. To billion Communist total. what has happened, note the enormous calculate where the world is headed, we increase which these tables reveal be must examine the arms trans.fer agree The U.S. arms program can be looked tween 1973 and 1980 in arms deliveries ments currently being consummated. at in another way. Instead of just focus not only by the United States but by ing on agreements with the Third World. France, the United Kingdom, West Ger ARMS AGREE MENTS PREDICT LARGE it is important to keep in mind the full many, Italy, the Communist nations. F UT U RE TRANSFERS scope of U.S. arms activities. They have gone way, way up. They have The second table behind me shows that In 1971, the U.S. foreign military sales increased from $6.8 billion in 1973 for the arms agreements with the Third World agreements program totaled $1.4 billio~. total amount to $18 billion in 1980, a are skyrocketing at an alarming pace, This rose dramatically to $16.1 billion in threefold increase. from a total of $10.4 billion in 1973 to 1975, then fell to $8.3 billion in 1977 and The Communist increase has been even $41.2 billion in 1980. These agreements then began another climb to the current sharper, from $2.7 billion to $10 billion. will translate into mammoth arms deliv level of over $15 billion. We still sell far more arms than the eries in future years. Mr. President, I ask unanimous con Communist countries do, but they are in I am talking now not about the de sent that the two tables and footnotes creasing their sales more rapidly than we liveries, Mr. President, but about the referred to earlier and a table of total are. agreements. From $10 billion to $41 bil U.S. foreign military sale.s agreements Of the non-Communist nations, the lion is a fourfold increase. These are not be printed in the RECORD. United States is far and away the largest .iust statistics, Mr. President; these are There being no objection, the tables supplier to the Third World. With de lethal arms, more advanced than ever were ordered to be printed in the RECORD, liveries of weapons totaling $5.3 billion before. So while there is a fourfold in- as follows:
TABLE 1.- ARiv:S TRANSFER AGREEMENTS WITH THE THIRD WORLD, BY SUPPLIER I lin millions of current U.S. dollars!
1973 1974 1975 1976 1977 1978 1979 1980
TotaL ______------10, 452 21, 677 21,639 21, 398 28, 457 25,371 28, 865 41, 169 Non-Communist ___ . ______------____ ---- 6, 742 14,777 17, 299 13, 713 17,957 21, 521 18,665 25,069 Of which : United States 2 ______------__ 4, 412 10,097 10, 989 9, 813 9, 957 10, 311 9, 965 9, 659 France . ______. ___ _ 500 2, 100 2, 320 1, 035 3, 170 2, 725 4, 310 7, 935 United Kingdom ______1, 000 760 1, 320 600 1, 400 3, 570 1, 26:J 830 West Germany __. _____ ------______140 670 750 730 1, 220 2, 310 890 870 Italy ______------______---- 290 430 1, 040 220 980 1, 330 240 2, 680 Other free world ______400 720 880 1, 315 1, 230 1, 275 1, 900 3, 095 Communist______. ______------__ 3, 710 6, 900 4, 340 7, 685 10, 500 3, 850 10, 200 16, 100 Of which : U.S.S.R ------(3, 320) (5, 970) (3, 680) (6, 520) (9, 610) (2, 910) (8, 800) (1 4, 920) Dollar inflation index (1973=100) ______-- 100 107 117 131 136 146 158 174
• U.S. data are for fiscal year given (and cover the period frcm July 1, 1972, through Sept. 30, Iranian contracts canceled primarily by the Khomeini regime are as follows : fiscal year 1973 1980). Foreign data are for the calendar year given. Statistics ~hown for foreign countries are ($38,000 ,000) ; fiscal year 1974 ($390,000,000) ; fiscal year 1975 ($1,157,000,000) ; fiscal year 1976 based upon estimated selling prices. All prices given include the values of weapons, spa re parts , and transitional quarter ($236,000,000) ; fiscal year 1977 ($2,953,000,000) ; fiscal year 1978 ($1,673, - construction, all associated services, military assistance and train ing programs. U.S. commercial 000,000) ; fiscal year 1979 ($6,000,000); fiscal year 1980 ($0). Third World category excludes sales contract values are excluded , as are values of the military assistance service fun ded account Wa rsaw Pact nations, NATO nations, Europe, Japan, Australia, New Zealand. (MASF) which provided grant f unding for South Vietn2m, Laos , Fhilippines, Thailand, and South 2 Excludes $3,271,000,000 from U.S. total for 1976, which represents the transitional quarter Korea. MASF for fiscal year 1973 was $7,320,000 ,000 ; for fscal year 1974 ~84 C', C O O ,O OO ; for fiscal (fiscal year 197T). year 1975 $544,000,000. Related grant transfers to South Korea znd Thailand, also excluded , were $11 ,000,000 in fiscal year 1979 and $151,000,000 in fiscal year 1980. All data are current as of Source : U.S. Government. Jan. 1, 1981 , and reflects termination of all sales contracts other than Iran. The value of prior TABLE 2.- ARMS DELIVERIES TO THE THIRD WORLD, BY SUPPLIER ' (In millions of current U.S. dol.arsl
1973 1974 1975 1976 1977 1978 1979 1980 TotaL ____ . ------______------6, 669 7, 291 8, 049 11, 824 15, 231 18, 519 20,629 18, 342 Non-Communist______2, 719 4, 411 5, 049 7, 624 9, 551 11, 529 10, 609 10,672 Of which : United States 2 ______1, 319 2, 861 3, 149 4, 654 5, 891 6, 429 5, 939 5, 322 France ______------620 480 480 930 1, 010 1, 660 1, 280 2, 490 United Kingdom ______360 450 410 530 720 1, 020 770 600 West Germany _. ______------______100 180 260 490 620 630 450 810 Italy ______---- ____ 100 130 190 190 350 600 510 4€0 Other free world. ______260 310 560 830 960 1, 190 1, 660 990 Communist______------3, 950 2, 880 3, 000 4, 200 5, 680 6, 990 10,020 7, 670 Of which : U.S.S.R •• ------(3, 550) (2, 500) (2, 400) (3, 410) (4, 990) (6, 100) (9, 110) (6, 690) Dollar inflation index (1973 = 100). ------100 107 117 131 136 146 158 174
1 U.S. data are for fiscal year given (and cove r the period from July 1, 1972, through Sept. 30, $1,159,000,000 ; for fiscal year 1975 $1,125,000,000. Related grant transfers to South Korea and 1980}. Foreign data are for the calendar year €iven. Statistics shown for fo rei gn countries are Thailand , also excluded, were $11,000,000 in fiscal year 1979 and $10,000,000 in fiscal year 1980. based upon estimated selling prices. All prices gi ven include the values of weapon s, spare parts, All data are current as of Jan. 1, 19!11. Third world category excludes Warsa w Pact nations, NATO construction, all associated services, military assistance and training ptograms. U.S. commercial nations, Europe, Japan, Australia, New Zealand. sales contract values are excluded , as are values of the military ass istance service funded account 2 U.S. totals for 1976 include the transitional quarter (fiscal year 1977). (MASF) which provided grant funding for ~outh Vietnam , Laos, Philippines, Tha iland, and South Korea. MASF deliveries values for f:scal year 1973 Y.ere t4,326,000,000 ; for fiscal year 1974 Source : U.S. Government. 26944 CONGRESSIONAL RECORD-SENATE November 6, 1981 F.l1S agreements sales by the Soviet Union provoke arms I do not argue that an arms free zone 1In billions 1 sales by the United States. The reason would be easy to negotiate or enforce. It Fiscal year: \rhy this is increasing, of course, is that would not be. It would be difficult and 1981 ------•$8.5 \\·e say, "Look at what they are doing," challenging and would take time. May 1980 ------15.3 and they say, '·Look at what they are be we would not succeed at first; maybe 1979 ------13. 0 doing." We happen to sell more arms we would never succeed but certainly 1978 ------11. 0 8.3 the free world-than the Communist \Ve will never succeed if we do not try. 1977 ------world, but we are both at fault. . At least, as much energy should go 1976 ------14.4 AR:\IS SALES ARE SUBSTITUTE FOR OTHER into exploring this concept as into the 1975 ------16. 1 1974 ------10.3 POLICIES search for new markets for American 1973 ------4.8 The Reagan administration is depend aerospace corporations. 1972 ------2.95 ing on arms sales as the central theme Mr. President, let me commend to 1971 ------1.4 of our foreign policy more by default every interested party the analysis of 1950- 70 ------12 . 9 than any other reason. We have no in arms sales recently completed by the •original estimates tor fiscal year 1981 or ternational economic development plan. Congressional Reference Service for the about $15 billion have been lowered due to We have no active arms control philoso Subcommittee on International Security unanticipated reductions in planned con phy. We have no regional cooperation and Scientific Affairs of the Committee tracts with certain nations. program. \Ve have no long term pro on Foreign Affairs of the House of Rep Mr. PROXMIRE. Mr. President, the posals for fighting the propaganda suc -resentatives. This document, titled internal rationale for the arms sales phi cesses of the Warsaw pact nations. "Changing Perspectives on U.S. Arms losophy seems to be that they invoke de Why do we not have these things? We Transfer Policy" is the most complete, pendency. They are a way of bringing should have every one of them. accurate, and authoritative analysis of countries to our side, presumably be We should have an international eco arm& sales done in recent years. Its au cause, once a commitment has been nomic development plan. We certainly thors, Richard Grimmett, Robert Shuey, made, the country usually has to return should have an active arms control phi Larry Nowels. and others deserve our to the prime supplier for spares, ad losophy. We should have regional coop appreciation for proviC:ing the Congress vanced equipment and support. In effect eration. We should have proposals for with this excellent document. they become hooked on the supply chain. fighting the propaganda successes of the THE PLIGHT OF THE FALASHAS This explosion in arms sales commit ·warsaw pact nations. But we have none Mr. President, the plight of the Fala ments makes for profitable business for of them. shas, the black Jews of Ethiopia, is a the U.S. aerospace community. It is no In their place, we substitute arms painful evidence of the failure of the wonder then that they lobbied so hard sales. world's nations to unify their support for for the AWACS sale and for lifting the The intellectual poverty in our for human rights into a strong and effective somewhat restrictive policies of the eign policy results in a single-minded international voice. Carter administration. commitment to the one device the ad The ordeal of the Falashas is described ARMS SALES POSES RISKS TO UNITED STATES ministration knows well and feels com in an October 2 op-ed article in the New fortable with-more arms. This is a The policy of pushing arms sales bears York Times. The author, Simcha Jacob policy which carries with it the great ovici, reports that in 1975- \71th it a number of hazards. First, arms est risks to long term U.S. leade-rship in sales displace economic development and Th'e landed aristocracy, fearing the loss the world. of its holdings to the landless Jews, decided make no contribution to raising the Sometimes arms sales are necessary to destroy them. standard of living in the developing to the national interests of the United world, precisely the area subject to the States. I am not saying that they are He goes on to say that: greatest pressures for acquiring all bad. Of course, there are occasions Through forced conversion, disperal, hun armament. ger, disease, and violence, the number of when we can and should provide means Falashas has been reduced to !ewer than As a matter of fact, it is precisely the of protection to nations that are very 10,000, from 28,000 in 1975. opposite. We know that as countries important for the interests of our coun acquire arms, the burden on those coun try. But they are not the answer to every The Israeli Government, whose rescue tries, particularly, as I say, the develop problem, in every nation, and every operations have been shrouded in secrecy ing countries, the poor countries, that situation. for fear of provoking further attacks on need all of their resources to feed their ARMS FREE ZONES the Falashas, have thus far been able to people and clothe their people and house Instead of increasing our commit save only 1.300 of them. In the United their people and take care of their ill ment to arms sales as the centerpiece of States last summer, meetings were held nesses, cannot do that because they have U.S. foreign policy, we should be doing between several Senators and Congress to divert so much of their resources to everything we can to reduce the inter men, but no course of action was decided maintaining the arms which, in some national flow of armaments. A good step on. The article reports that the Inter cases, we give them, or to buying the forward could be the negotiating of an national Committee of the Red Cross and arms if we sell them. international agreement not to ship Amnesty International have also done Second, the sales stimulate real and arms to certain regions or at least not to nothing. imginary fears of aggression by neigh ship arms beyond a specified degree of Jacobovici quotes a relief worker who boring countries. Thus rather than con sophistication. had been in Ethiopia as saying of the tributing to stability, the sales actually Why can we not do that? Why would situation: increase local tensions. it not make sense? This is not pie in Incredible- as it seems, Ethiopian Jewry is Third, the arms sales program be the sky or optimism. This is a matter vanishing while the rest of the world pays comes an intellectual crutch at the State of commonsense, a matter of really pur little attention. Department and Defense Department in suing peace in the world, of really help Mr. President, in sharp contrast to this lieu of other diplomatic and economic ing other nations help themselves, and display of irresolution and disunity is alternatives. Arms are the easy answer. of helping ourselves create a world in the Genocide Convention, which repre They are a fast answer. They are a sim which we would not have the terrible sents the efforts of 87 countries to unify ple answer to questions that otherwise threat of war. the civilized nations of the world in would require tough, drawn-out negotia As to arms free zones, what areas strong support of the most fundamental tions and permanent solutions painfully might this include? Certainly, Latin human right-the right to live. The Gen arrived at. America is one possibility for restric ocide Treaty is a statement of resolve Fourth, sales stimulate demand for tions on the introduction of sophisti of the international community that more sales and encourage regional arms cated weaponry by all parties. All of genocide-the intent to destroy whole races. We know that has taken place, South America, being far removed from groups of people-is a crime against all and it is something that certainly means East-West tensions, would lend itself of humanity. they contribute to the greatly increased to some arms free zone approach. Per Our failure to ratify the Genocide likelihood of war. haps the same could be worked out for Convention is the only major note of Fifth, arms sales by the United States parts of Africa, such as equatorial noncooperation in this important inter provoke arms sales by the U.S.S.R. Arms Africa. national effort. A united effort may well November 6, 1981 CONGRESSIONAL RECORD-SENATE 26945 be needed to help the Falashas. Mr. Mr. Wu Maosun, Standing Committee beginning, is actually gutting the very Member CPPCC; Vice Chairman, Kuomin programs he wishes to defend. President, how can we call for a united tang Revolutionary Committee effort when we have failed to answer the · Mr. Jia Yibin, Standing Committee Mem On September 24, the President went call for united stance against genocide? ber CPPCC; Vice Chairman, Kuomintang to the Nation with his general plan for We must ratify the Genocide Conven Revolutionary Committee additional spending cuts to get us back tion now. Mr. Shen Quihen. Standing Committee toward the balanced budget: but today Member. CPPCC; Vice Chairman, Chinese we see the details of his work. Peasants and Workers Democratic Party With his further budget revisions, with ROUTINE MORNING BUSINESS Mr. Huang Jiasi. Member, CPPCC; Presi his new beginning, what happens? He dent, Chinese Academy of Medical Sciences; cuts the FBI by some 2,000 positions, re The PRESIDING OFFICER. There P:-ofessor; Vice Chairman. Chinese Medical will now be a period for the transaction Society ducing the special agent force by some of routine morning business. Mr. Wang Guangying, Member, CPPCC; 500 agents. That is not a new beginning. Mr. PROXMIRE. Mr. President I sug Vice Chairman, China Democratic National it is a tragedy. Ten years ago, we had gest the absence of a quorum. Construction Association; Deputy Mayor of 8,600 agents in the war against crime: Tianjin now we have 7,700 in our rear-guard The PRESIDING OFFICER. The clerk Mr. Wu Daknn, Member, CPPCC, Standing will call the roll. action versus crime. Right now the FBI Committee Member, China Democratic Na is 184 agents under strength and last The assistant legislative clerk proceed tional Construction Association; Professor of ed to call the roll. Economics, Chinese People's University week the Justice Department put a hiring Mr. BOSCHWITZ. Mr. President, I Ms. Bai Yang, Member, CPPCC; Leading freeze on all new employees, including ask unanimous consent that the order Actress. Shanghai Film Studio the FBI, the DEA, and the U.S. attorneys for the quorum call be rescinded. Mr. Ahu Qizhen. Deputy Director, Depart and marshals. As a result of the Presi The PRESIDING OFFICER Chinese Communist Party Central Com mittee is the actual fact? their jobs ty limiting drug traffic, appar Mr. Sa Kongliao, Secretary-General; As Attorney John Mitchell put it best, ently we have them washing cars and Standing Committee Member and Deputy the important thing is to "watch what baking cakes. Secretary General CPPCC, Vice Chairman, we do, not what we say." To make matters worse, Mr. President, China. Democratic League The President, doing his call for a new there was also some kind of official 26946 CONGRESSIONAL RECORD-SENATE November 6, 1981 memorandum issued restricting the pur going to increase spending some $20 balance the budget or to bring high in chase of fuel by any means other .than million or we were going to save about terest rates down without doing some from Federal funds. Maybe they will let $40 million. How does that occur? thing to restore some of these revenues, them turn off the lights in the office and Well, in the comprehensive health or, rather, without doing something to sit idly in the dark so they can at least center budget it has been cut by some spending cuts. I wish they would say save on energy cost. $20 million. We were closing ou~ and something about restoring some of the They cannot even use the money from laying off, closing down the particular revenues. u bake sale. That is against the Federal centers. My own home area is easiiy They come in and say-what? They I:tw now to do their job. . . . referred to and more accuratei.y referred say, "Spending cuts, spending cuts." They are forced, as I say, to sit m tne to. I have about 13,000 being treated They bring, if you please, financiers, office not go to the are not going to catch those v1olatmg about $1,200 each, or they will be spend analyses and looking in depth and the our laws, 1 guess we do not need th3 ing about $24 million or $25 million psychoanalyses of the voters. Let us ask attorneys to prosecute them. rather than the $10 million. Actually, we the voters themselves as they come out Is this really saving money? Let us are increasing the budget by trying to of the polls. talk some sense on law enforcement and cut the spending. We are actually in That is exactly what they did. budgets. creasing spending. Because those individ U.S. News & World Report on Novem The rate of crime is high and still uals will seek, and get, health care frorr~ ber 17 of last year, on page 39, reported rising-it was 3 percent for the first G more expensive sources. So this $20 mil what influenced a cross section of 12,782 months of 1981-and without a lion we restored to the Labor, Health and voters coming immediately out of the strengthened effort, Americans are Human Services and Education appro polls and not being interviewed by one never going to be safe in their streets or priations bill will actually save us a great of these long pollster things but just safe in their homes. There can be no cut deal of money. That is economy in Gov bam: "Question, what issue was more ting back on special agents, on vital law ernment. important in deciding how you voted?" enforcement, on antidrug programs, on I could take law enforcement, compre Let us look at the Reagan voters with procedures to make justice swift and hensive health centers, maternal and that 12.782. severe. We have to do more, not less, and child health care-I could go right down The first reason given by those exiting to pretend that cuts like these are going the list of women, infant and children the polls, "Inflation and the economy." to somehow magically balance the feeding, all of these preventive type pro The second reason given was, "The budget is pure sham. We are going to grams that really should be put into a balanced budget." need $100 billion to balance the budget category labeled "Government saves The third reason given was, "Unem and it is not going to come from cuts. money." There is no question about it. ployment." Republicans know that, Democrats know Economically, however, they are very, The fourth reason was, "National de that; everybody with any sense knows very sound. fense, U.S. prestige around the world." that here in the National Congress. The problem with the budget is not the The fifth reason was, "Reducing Fed The problem with the budget is not moneys that we spend on school lunches, eral income tax." the moneys we spend on law enforce infant care, and everything; the prob That was only 13 percent. Thirteen ment or other worthwhile programs, like lem is the revenue hemorrhage induced percent of the President's supporters school lunches, infant care, health and by Mr. KEMP, Mr. ROTH and Mr. Stock coming immediately out of the polls said, education, comprehensive health cen man to an all too willing Congress last "I voted for Ronald Reagan because I ters. summer. They gave up $750 billion in wanted to reduce taxes." Mr. President, on yesterday we de revenues between 11ow and 1986 and then My point is that what was really hoped bated, and fortunately we in the appro with indexing thereafter they start a real for was that we would get down these priations could see and really under revenue hemorrhage. high-interest rates, we would balance the stand the question, whether \Ve were Now they say there is just no way to budget. The President should not try to November 6, 1981 CONGRESSIONAL RECORD-SENATE 26947 finesse or submerge or dodge, if you panic and we are asking the leadership, Later, when my father commanded a com please. that particular charge because the administration and this President, pany of recruits training during the Korean when he makes the statement that it was to withdraw this vague statement of a conflict I looked forward to the days of the dress parade and seeing the battalion full on~y balanced budget was only a goal and not r.. h::>pc and not n. !)r.:>:n·i2e, what he dress uniform responding to the commands is telling the American people is, as they a promise. and marching proudly to the band stirring pe::ceive it, that we are never going to I ran last year, Mr. President, and I Sousa marches. Nothing can be more exciting have the Government back in the black ran on the promise of a balanced budget. than to see men proudly march after their again. I heard that promise from candidate fiag and give their precise salute. I was As I pointed out, not only the $750 Reagan time and time again. It was aroused to the inspiration of my country's billion, but you trigger in indexing and reiterated in the campaign time and fiag. it is financially, arithmetically impossible time again. It was verified by the Reagan Then, after nearly 30 years of service, my Dad, then a Lt. Col., retired and I was im to balance the budget with spending cuts. voters as they came out to the polls; pressed with the charity of the fiag. It had In 1984, the entitlements, which the That was their number one reason. Rea appreciated his assistance and thanked him. President has promised are going to re son five, with only 13 percent, was cut I learned gratitude from the fiag. main undisturbed and even with minor ting taxes. The people are not looking At this moment, my father lies in a hospi adjustments-I could make some with for a revenue hemorrhage. They are not tal recovering from the amputation of his COLA. I recommended some entitlement worried about what their tax bill is go lower leg, brought on by a terrible disease changes myself, not only in the Budget ing to be in 1983 and 1984. They are and I am sad that he will never march to the Committee, but debated on the floor here. worrying about surviving this winter in "St ars and Stripes Forever" again, but I can and wlll do so proudly because of what he But be that as it may, entitlements must America, trying to do business. and my country's fiag have taught me. Also be paid-$400 billion. Interest on the na I thank the Chair. I can instlllin my children a love for a coun tional debt must be paid-$100 billion. try that enables us to make something of National defense, with cuts, still totals ourselves and gives us the freedom to do it. $250 billion. That is with the President's WHAT THE AMERICAN FLAG MEANS I can teach them not to take this freedom cuts and more that are contemplated TO ME for granted, but to be willing to stand for now by the chairman of the Committee Mr. McCLURE. Mr. President, in July the things that are right and good. Not to on Appropriations. I am not necessarily of this year, the Chamber of Commerce "love 1t or leave it" as some have said, but endorsing that; I am trying to give the to love it and help it become better when it in Rupert, Idaho, held an essay contest needs to be better. They need to know and arithmetic of $750 'billion just in three on the subject "What the American Flag appreciate the proud heritage of our fiag. items, without any other departments of Means to Me." These contests are fairly A fiag is a country's emblem, but a flag is Government. And we only have revenues common throughout the country, but nothing without a great country behind it. of $750 billion. the essay that won in Rupert seems to A country cannot be great without dedicated people supporting it. I am proud to be a citi That is why Republican chairmen and m~ to be truly uncommon. Mrs. Sue Republican leaders have been going to Child of Rupert wrote the winning es zen of this glorious country. To me the flag the White House to plead commonsense say, which is a tribute, not only to the means love, respe~t. inspiration, gratitude witm this administration. On the Demo and proud heritage. It has earned my loyalty flag but also to her father and to all and I pledge to keep the tradition of my cratic side, we have been dutifully re the men and women who have served family by giving my allegiance for my coun spectful and quiet. This budget resolu their country in a time of war. She has try's fiag. tion should have been out and approved captured, with her words, the feelings by October 1. We were chastised. When that I think all of ns share when we I was chairman of the Budget Committee EXECUTIVE AND OTHER COM look upon our flag. MUNICATIONS last year, we were chastised for being I ask unanimous consent to have the late; we were derided for trying to play essay printed in the RECORD . The following communications were games and everything else like that. There being no objection, the essay laid before the Senate, together with ac We did come up with reconciliation, was ordered to be printed in the REcORD, companying papers, reports, and docu the first one passed and signed by Dem as follows: ments, which were referred as indicated: ocratic President Jimmy Carter in De WHAT THE AMERICAN FLAG MEANS TO ME! EC-2183. A communication from the Dep cember, cutting spending. We were head uty Director of the Office of Management and ing for a $20 billion deficit rather than Like so many people I get those thrilling Budget, Executive Office of the President. an $80 billion deficit. feelings when I see our proud fiag, but it's transmitting, pursuant to law, notice that hard to put the reasons down on paper. the appropriation to the Department of Jus In an election year, we had to talk I feel the stirrings more this year because about courage and sacrifice, and in an tice, Immigration and Naturalization Service, of some personal things that have happened has been apportion:!d on a basis which in election year, we had foregone tax cuts. so I feel I must try to relate my feelings to you. dicates the necessity for an amended estimate We said the first order of business is to of appropriation; to the Committee on Ap get these interest rates down and get My father was an Army man. He joined propriations. this economy moving. when he was seventeen, after just four years EC-2184. A communication from the As They are changing it around. When in the United States, having emigrated from sistant Secretary of the Air Force (Research, the President said this, this morning, Scotland where he was born. He served well Development, and Logistics), transmitting, he is disillusioned with the American and the service was good for him. He received pursuant to law, a report on a study with people. He is telling those on the edge of an education and promotions came quite respect to converting the Extension Course regularly. He was a Sgt. when I was born. I Institute Course Materials Function at Gun bankruptcy there is no hope. remember a good life and some sad times too. ter Air Force Station, Ala., and the decision I would hope, rather, that Represent I remember my mother crying about some that performance under contract is the most ative KEMP, who says "we no longer thing said on the radio-it was Dec. 7, 1941. cost-effective method of accomplishment; to worship at the shrine of the balanced My father comforted her and went overseas the Committee on Armed Services. budget," and Secretary Regan, with his willlngly when he was called. It was his job, EC- 2185. A communication from the Presi cronies from Wall street telling the also it was his country. My love for my coun dent and Chairman of the Export-Import President one way and voting the other try's fiag began to grow. Bank of the United States, transmitting, pur way with their pocketbooks, will sober I guess my father had some bad times at suant to law. a report with respect to a trans war (he neved talked to t he children about action involving United States exports to the up. them) but I do know he never wanted to United Mexican States; to the Committee on This is a problem that is not going have anything to do with guns again. He came Banking. Housing, and Urban Affairs. away, Mr. President. It is going to ex home to more peaceful c.ssil!'nments and we EC-2186. A communication from the Presi acerbate ·or get worse. Yes, with a re put away our pot lids and other noisemakers dent and Chairman o! the Export-Import cession, interest rates will come down that we used to celebrate VE Day and VJ Bank of the United States, transmitting, pur slightly, but with deficits of $100 and Day and were grateful to a fiag that returned suant to law, a report with respect to a $165 billion, really, with the proper es our Daddy home to us. I saw others who transaction involving United States exports timates for 1984, Mr. President, and weren't so fortunate. Thev had a star in their to Argentina and Paraguay; to the Committee window and a black wreath on their door, but on Banking, Housing, and Urban Affairs. higher deficits thereon, we are going to the sadness you could see in their eyes also EC-2187. A communication from the Under be in a tragic economic circumstance in held a pride that comes from knowing their Secretary of the Interior, transmitting, pur this country. And there will be panic, loved one had served his country well. And smmt to law, notice on lea..~ing systems for there will be literal panic here next I learned to be respectful of the meaning of 011 and Gas Lease Sale No. 59, Mid-Atlantic, spring. We are trying to forestall that my flag. scheduled to be held on December 8, 1981; 26948 CONGRESSIONAL RECORD-SENATE November 6, 1981 to the Committee on Energy and Natural "Resolved, That copies of this resolution POM- 577. A petition from a citizen of Resources. be delivered to the Presiden.t of the United Topeka, Kansas, relative to union violence EC-2188. A communication from the States, the Pennsylvania Congressional Dele in America; to the Committee on Labor and Comptroller General of the United States, gation, the Speaker of the United States Human Resources. transmitting, pursuant to law, a report en House of Representatives and .the President POM- 578. A petition from a citizen of titled "What IRS Can Do To Collect More of the United States Senate." Clarksville, Tennessee, relative to union vio Delinquent Taxes"; to the Committee on lence in America; to the Committee on Labor I inance. POM-574. A resolution adopted by the As and Human Resources. EC-2189. A communication from the .\s sembly of the State of Wisconsin; to the sistant Secretary of the Treasury ( Adminis Committee on Foreign Relations: tration). transmitting, pursuant to law. no "1981 AssEMBLY RI::soLuTION 13 INTRODUCTION OF BILLS AND tice of a new Privacy Act system of records; JOINT RESOLUTIONS to the Committee o.1 Governmental Affairs. "Whereas, the current authoritarian gov EC-2190. A communication from the ernment of El Salvador has violated those The following bills and joint resolu Chairman of the Council of the District of rights through the use of military force and tions were introduced, read the first and Columbia, transmitting, pursuant to law, political and social repression; and "Whereas, the government of the United second times by unanimous consent, and copies of legislation adopted by the Coun referred as indicated: cil o:1 September 15, 1981; to the Commit States continues to aid and abet the current tee on Governmental Affairs. regime with military and economic assist By Mr. QUAYLE: EC-2191. A communication from the As ance, including the commitment of U.S. S. 1821. A bill to terminate the Department sociate CommiEsioner of the Immigration armed forces; and of Education, to define the responsibillty for and Naturalization Service, Department of "Whereas, the people of Wisconsin view Federal educational assistance, and for Justice, transmitting, pursuant to law. visa with alarm our country's increasing involve other purposes; to the Committee on Gov petitions which have been accorded third ment in the affairs of a sovereign state; now, e::nmental Affairs. and sixth preference classification under sec therefore, be it By Mr. McCLURE (for himself and Mr. tion 204(d) of the Immigration and Nation Resolved by the assembly, That the mem SYMMS): ality Act; to the Committee on the Judi bers of the assembly urge congress to ter S. 1822. A blll to provide for the minting ciary. minate its military and financial support to of coins having a denc,mination of ten dollars EC-2192. A communication from the Act the current government of El Salvador; and, with a design emblematic of .the two hund·red ing Chairman of the Equal Employment be it further and fiftieth anniversary of the birth of Opportunity Commission, transmitting, pur Resolved, That duly attested copies of this George Washington; to the Committee on suant to law. a report on the activities of the resolution be transmitted to all members of Banking, Housing, and Urban Affairs. Commission's Office of Interagency Coordi congress from this state, the President of S. 1823. A bill to amend the Omnibus Rec nation for the period July 1, 1979 through the United States, the U.S. Secretary of State, oncillation Act of 1981 and Strategic and June 30, 1981; to the Committee on L:l.bor the secretary of the U.S. Senate and the chief Critical Materials Stock Pillng Act, to as o.nd Human Resources. clerk of the U.S. House of Representatives." sure an adequate supply of silver to the United States in times of national emergency POM-575. A resolution adopted by the and that excess supplies are disposed of in PETITIONS AND MEMORIALS House of Representatives of the Common a manner that minimizes the potential for wealth of Massachusetts; to the Committee market disruptions while providing maxi The following petitions and memorials on the Judiciary: mum revenues to acquire other stockpile were laid before the Senate and were "MEMORIALIZING THE CONGRESS To EXTEND materials that are in short supply; to the referred or ordered to lie on the table as THE VOTING RIGHTS ACT IN ITS PRESENT Committee on Armed Services. indicated: FORM By Mr. CHILES (for himself, Mr. SAS POM-571. A petition from citizens of Ohio, "Whereas, the key provisions of the 1965 SER, Mr. MELCHER, Mr. RIEGLE, Mr. relative to licensing of CB radios; to the Voting Rights Act will expire August 6, 1982, ROBERT C. BYRD, Mr. BAUCUS, Mr. Committee on Commerce, Science, and Trans unless renewed by Congress; and BIDEN, Mr. BOREN, Mr. BURDICK, Mr. portation. "Whera.s, the Voting Rights Act is rightly CANNON, Mr. DECONCINI, Mr. DODD , POM-572. A resolution adopted by the considered the most effective civil rights Mr. EAGLETON, Mr. EXON, Mr. FORD, Southern California Hearing Council, favor legislation ever enacted in the United States; Mr. GLENN, Mr. HEFLIN , Mr. HUD ing full access to telephones for -people who and DLESTON, Mr. INOUYE, Mr. JACKSON, use hearing aids; to the Committee on Com "Whereas, the Voting Rights Act has sub Mr. JOHNSTON, Mr. KENNEDY, Mr. merce, Science, and Transportation. stantially increased the number of individ LEAHY, Mr. LEVIN, Mr. MATSUNAGA, POM-573. A resolution adopted by the uals voting in State, municipal, and National Mr. METZENBAUM, Mr. MITCHELL, Mr. Senate of the State of Pennsylvania; to the elections; and NUNN , Mr. PELL, Mr. PRYOR, Mr. Committee on 3nergy and Natural Resources. "Whereas, the extension of the Voting RANDOLPH, Mr. SARBANES, Mr. WIL "RESOLUTION Rights Act as the law of the land constitutes LIAMS, Mr. ZORINSKY, and Mr. CRAN "Whereas. The Natural Gas Policy Act of the single best assurance to all citizens of the STON): 1978 (Public Law 95-621) calls for the grad United States that their participation in the S.J . Res. 120. A joint resolution directing ual decontrol of natural gas prices through American political process will be guar the President to assure an adequate fiow of 1985; and anteed; and afforjable credit to small borrowers; to the "Whereas, Efforts are being made to ac "Whereas, the extension of the Voting Committee on Banking. Housing, and Urban celerate the schedule for the decontrol of Rights Act will allay the fears of many Affairs. natural gas prices; and groups that a regression of voting rights may "Whereas, Accelerated decontrol of natural occur if the Act is not extended; therefore be gas prices may cost PennsylvaniA. $10,600,- it STATEMENTS ON INTRODUCED 000,000 more than gradual decontrol through "Resolved, That the Massachusetts House BILLS . AND JOINT RESOLUTIONS 1985; and of Representatives hereby urges the Congress By Mr. QUAYLE: "Whereas, Accelerated decontrol will cause of the United States to extend the Voting S. 1821. A bill to terminate the De commerce and industry to pay considerably Rights Act in its present form; and be it more for natural gas for heat and process further partment of Education, to define the re uses, resulting in decreased revenues and "Resolved, That copies of these resolutions sponsibility for Federal educational as investment in the Commonwealth; and be forwarded by the clerk of the House of sistance, and for other purposes; to the "Whereas, Accelerate:! decontrol will cause Represntatives to the Honorable George Committee on Governmental Affairs. natural gas prices to rise above that of oil, Bush, Vice-President of the United States EDUCATIONAL ASSISTANCE AGENCY ACT prompting natural gas users to switch to oil and President of the U.S. Senate; the Hon as an energy source and thus greatly in orable Thomas P. O'Neill, Speaker of the Mr. QUAYLE. Mr. President, I am creasing foreign oil payments; and U.S. House of Representatives; the Honorable today introducing a bill to eliminate the "Whereas, The loss of jobs in the Com Strom Thurmond, Chairman of the Senate Department of Education and to move monwealth may run into the hundreds of Judiciary Committee; the Honorable Peter the majority of its functions into other, thousands; and W. Rodino, Jr .. Chairman of the House previously existi.ng, departments and "Whereas, Accelerated decontrol wlll result Judiciary Committee; and to the Members of agencies. This is a small test to see if the in higher consumer prices for food, clothing, the Congressional Delegation from Massa· Congress will actually reduce Govern housing and other necessities; therefore chusetts." ment's role in general and the Federal be it "Resolved, That the Senate of the Com POM-576. A petition from a citizen of Los involvement in education specifically. monwealth of Pennsylvania opposes the Angeles, California, relative to union vio The Department of Education has been accelerated schedule for the decontrol of lence in America; to the Committee on Labor in existence for slightly over 2 years. The n~tural gas price; and be it further and Human Resource& very existence of a Cabinet-level Depart- November 6, 1981 CONGRESSIONAL RECORD-SENATE 26949 ment of Education invites a philosophical education and meet regularly to discuss with the new administration, the new argument. Is education a Federal respon problems, hear complaints from the federalism, the idea of decentralization sibility or does that responsibility prop parents of students, and find solutions. that Government reorganization will re erly lie with States and local communi A parent can go to the local school sult in the elimination of both these ties? board meeting and have a fair hearing Departments. I suggest that education is a function on a complaint. That parent will be less I cannot think of a better area to be of States and local communities, and a effective in presenting a problem if it has gin to firmly establish what is a State concern-an important concern-of the to be heard at the State capital. And responsibility and what is a Federal re Federal Government. certainly, bringing a complaint to Wash sponsibility. Education is a State and The new federalism as accepted by the ington is ofte.n an educational experience local responsibility. Certainly it is a American people, did not envision more of a wholly different type. concern of the Federal Government and centralization of the Government. It did Carolyn Warner, who is the superin Senators and Congressmen, but it is not not envision power grabs by Washington tendent of public instruction for the our primary function or responsibility. bureaucrats and well-heeled lobbyists. State of Arizona, said in a speech that The National Governors Association The new federalism is the resumption of many people "believe they have no con recently endorsed the concept of return the identities of our States and cities, trol over the Federal Government." ing the entire funding of education to and their acceptance of responsibilities. Speaking about the Federal role in the States, a concept that certainly goes During the past two decades we have education, she said that he had no quar with merit, a concept that is intriguing witnessed an unprecedented erosion of rel with most of the programs, but- and one that should be fully explored as power from local communities to Wash we are arguing against the intolerable we discuss this legislation. ington. This culminated in the creation rules and regulations and paperwork and Mr. President, I hope that we will be cost of implementing each of those programs able to gain the support and begin the of the Cabinet-level Department of Edu in their minutest bureaucratic detail. cation in 1979. It is most unfortunate dialog now. The time for focusing our that there are those more concerned Superintendent Warner said that the attention on Government reorganiza about Federal pcwer, regulations, and State of Arizona receives 8 percent of its tion and regulations and the proper role further intrusions into our school sys funding from the Federal Government of Washington, States, and local com tems than they are concerned about the and receives 86 percent of its paperwork munities, is well overdue. quality of education. and administrative costs from Wash Mr. President, I ask unanimous con Our primary focus must be quality ington. sent that the bill and a section-by-sec education and our children. Yet during She said "A Federal system of educa tion analysis be printed in the RECORD. the past discussions of education in tion is going to lead us to educational There being no objection, the bill and Congress, the debate has not been cen mediocrity." analysis were ordered to be printed in tered on our children, but on how big Let me now address the specifics of the RECORD, as follows: and how expensive the new Cabinet my bill. First, it repeals Public Law 96-88 s. 1821 level Department of Education might which established the Department of Be it enacted by the Senate and House ultimately be. This unfortunate turn has Education. The bill will spread most of of Representatives of the United States of resulted in the crisis in which we now the functions of the Department into America in Congress assembled, That this find our educational system. existing departments and agencies ac Act may be cited as the "Education Assist This bill is intended to demonstrate cording to the following schedule: ance Agency Act". that this very important concept has Student Loans to Treasury; TITLE I-GENERAL PROVISIONS not been forgotten. The concept of re Programs for the handicapped to FINDINGS AND PURPOSE turning responsibility for teaching our HHS. SEc. 101. (a) The Congress finds that children to the most local possible level Libraries to HHS. (1) parents have the primary responsibil of government is part and parcel of the Foreign language programs to State. ity for the education of their children, and new federalism of which President Rea International programs to State. States, localities, and educational institu gan has spoken, requiring a review of DOD schools and impact aid to De- tions have the responsibility for supporting the changing role of the Federal Gov fense. that parental role; Telecommunications to Commerce. (2) the primary public responsibility for ernment and its relationship to the education belongs to the States, the local States, to local governments, and to our Education statistics to Commerce. school systems, and other instrumentalities citizens. Museums to National Foundation for of the States; and The story of the birth of the Depart the Arts. (3) a Cabinet-level Department of Educa ment of Education is not glorious. It was National Institute of Education to tion threatens to preempt the role of parents, a campaign promise made by Jimmy NSF. localities, and the States in determining Carter to the National Education Asso College housing loans to HUD. policy for education. Veterans cost of instruction to VA. (b) It is the purpose of this Act to termi ciation in return for the NEA's political nate the Department of Education and to de support. Other programs will be placed into the fine the responsibility of the Federal Govern After passing the Senate easily, a bill Federal Education Assistance Agency ment in education as one of assistance and establishing this Department passed the which will be established by this bill. The support through the establishment of the House Committee on Government Op FEAA will contain the new education Education Assistance Agency, and thereby to erations by one vote, with a close vote block grant, elementary and secondary recognize the primary responsibility of par on the floor of the House. education programs, and higher educa ents, States, localities, and educational in stitutions in determining educational policy. On October 17, 1979, President Carter tion programs other than student loans. made good on his promise and signed This bill requires a 20-percent, across FEDERAL-STATE RELATIONSHIPS SEc. 102. (a) It is the intention of the Con the bill into law. the-board personnel reduction and fur gress to protect the rights of State and local The reasons I opposed the bill in the ther requires a careful accounting of the governments and public and private educa House of Representatives are the same use of consultants who will be included tional institutions in setting educational reasons I am introducing this bill in the in full-time equivalents to reach the 20- policies and administering programs and to U.S. Senate. The well-documented feel percent reduction figure. strengthen and improve the control of such ing throughout this land that the Fed I am looking forward to hearings in governments and institutions over their own eral Government had gotten too big and the Senate Education Subcommittee and educational programs and policies. (b) No provision of law regarding a pro too powerful, is magnified by the estab the Senate Committee on Governmental gram administered by the Director or by any lishment of this department. Affairs. This Department should never other officer of the Agency shall be construed I suspect that the involvement of most have been established. Now is the time to authorize the Director or any other Fed American3 is limited to two areas: They to rectify that error. eral officer to exercise any direction, super vote, and they belong to the PTA, or Finally I am hopeful that, contrary to vision, or control over the curriculum, pro some similar organization. the past administration which delved in gram of instruction, administration, or per sonnel of any educational institution, school, In most communities the last vestige Government reorganization and that or school system, over any accrediting agency of the uniquely American town meeting Government reorganization resulted in or association, or over the selection or con is the local school board. Nonprofes the creation of the Department of Edu tent of library resources, textbooks, or other ~ionals run for positions on the board of cation and the Department of Energy, instructional materials by any educational
79-059 0-85-33 (Pt. 20) 26950 CONGRESSIONAL RECORD-SENATE November 6, 1981 institution or school system, except to the FEDERAL INTERAGENCY COMMITTEE ON (b) The Secretary ot Defense is authorized extent authorized by law. EDUCATION to enter into such interagency agreements (c) No funds provided under any program SEc. 205. (a) There is established a. Fed with the head of other departments or agen administered by any Federal officer or agency e:-al Interagency Committee on Education. cies to administe!' any ponion of the func may be suspended, terminated, or otherwise (b) The committee shall assist the Di tions and activi<:ies transferred to the Secre withheld from any educational institution, rector in coordinating to policies, proce te.ry under clauses (2) and (3) of subsection school, or school system on the basis of any dures, and programs of the Agency and other (a). as the Secretary determines to be neces requirement relating to curriculum, program Federal departments and agencies adminis sary and appropriate. of instruction, administration, the selection tering educational programs. The Committee TRANSFERS TO THE DEPARTMENT OF THE of library resources, textbooks, or other in shall make recommends. tions designed to TREASURY structional materials, except to the extent avoid unnecessary duplication of activities SEc. 304. There are transferred to the Sec specifically authorized by law. and repetitive collection of data. retary of the Treasury all functions of the DEFINITIONS (c) The Committee shall be composed of Secretary of Education and the Department SEC. 103. As used in this Act, unless other the Director who shall chair the Commit of Education under part B of title IV of the wise indicated by the context-- tee, and the senior policymaking officials Higher Education Act of 1965, relating to the ( 1) the term "Agency" means the Educa from the Federal agencies, commissions, and guaranteed and insured student loan pro tion Assistance Agency or any component boards which the President ·determines are grams. thereof; appropriate for membership on the Com TRANSFERS TO THE DEPARTMENT OF STATE (2) the term "Dire~tor" means the Di mittee. SEC. 305. There are transferred to the Sec rector of the Education Assistance Agency; (d) (1) The Committee shall meet at least retary of State all functions of the Secretary (3) the term "Deputy Director" means the twice each year. of Education and the Department of Educa Deputy Director of the Education Assistance ( 2) The Director and the head of each de tion under title VI of the Higher Education Agency; partment and agency represented on the Act of 1965, and all other functions of the (4) the term ".function" includes any Committee under subsection (c) shall fur Office of International Education of the De duty, obligation, power, authority, respon nish necessary assistance to the Committee. partment of Education. sib111ty, right, privilege, activity, or pro TITLE III-TRANSFERS OF AGENCIES AND TRANSFERS TO THE NATIONAL SCIENCE gram; FUNCTIONS ( 5) the term "State" includes the District FOUNDATION TRA::-1SFERS TO THE DEPARTMENT OF HEALTH AND SEc. 306. There are transferred to the Na of Columbia, the Comxnonwealth of Puerto HUMAN SERVICES Rico, the Virgin Islands, Guam, American tional Science Foundation the National In Samoa, the Northern Mariana Islands, and SEc. 301. There are transferred to the Sec stitute of Education and all functions of the the Trust Terri tory of the Pacific Islands; retary of Health and Human Services all Secretary of Education and the Department (6) the term "private educational insti functions of the Secretary of Education and of Education with respect to or being ad tutions" refers to independent, nonpubllc, the Department of Educat ion under- ministered by the National Institute of Edu and private institutions of elementary, sec (1) the Rehabilitation Act of 1973 as cation, and all other constituent components ondary, and postsecondary education; and transferred to the Secreta!'y of Education of the National Institute of Education such under section 301(a) (4) (A) and (C) of the as the National Council on Educo.tional (7) the term "office" includes any office, D ~ partment of Education Organization Act; Research. institute, council, unit, organizational en (2) the Act of June 20, 1936, commonly tity, or component thereof. TRANSFERS TO THE NATIONAL FOUNDATION ON referred to as the Randolph-Sheppard Act THE ARTS AND THE HUMANITIES TITLE II-ESTABLISHMENT OF THE (20 U.S.C. 107 et seq.); AGENCY SEc. 307. There are transferred to the Na (3) the Education of the HandicappeJ Act; tional Foundation on the Arts and the Hu ESTABLISHMENT; DIRECTOR (4) the Library Services and Construction manities the Institute of Museum Services SEc. 201. There is established, as an Act; and an functions of the Secretary of Edu agency of the executive branch of the Fed (5) the National Commission on Libraries cation and the Department of Education eral Government, the Education Assistance and Information Science Act; and relating to the Institute of Museum ·Serv Agency. The Agency shall be administered, in ( 6) all laws relating to the relationship ices. accordance with the provisions of this Act, between (A) Gallaudet College, the American Printing House for the Blind, the Model TRANSFERS TO THE VETERANS' ADMINISTRATION under the supervision and direction of a Di SEc. 308. There are transferred to the Ad rector The Director shall be appointed by Secondary School for the Deaf, the Kendall Demonstration Elementary School, and the ministrator of the Veterans' Administration the President, by and with the advice and all functions of the Secretary of Education consent of the Senate. National Technical Institute for th~ Deaf, and (B) the Department of Education. and the Department of Education under sec OTHER PRINCIPAL OFFICERS tion 420 of the Higher Education Act of 1965, SEc. 202. (a) There shall be in the Agency TRANSFERS TO THE DEPARTMENT OF COMMERCE relating to veterans cost-of-instruction pro a Deputy Director who shall be appointed SEc. 302. (a) ( 1) There is transferred to the gram. Department of Commerce the National Cen by the President, by and with the advice and TRANSFERS TO THE DEPARTMENT OF HOUSING consent of the Senate. During the absence ter for Education Statistics. There are trans AND URBAN DEVELOPMENT or disab111ty of the Director, or in the event ferred to the Secretary of Commerce all func tions of the Secretary of Education and the SEc. 309. There are transferred to the Sec of a vacancy in the office of the Director. retary of Housing .and Urban Development the Deputy Director shall act as Director. Department of Education with resoec<;; to or being administered by the National Center all functions relating to college housing The Director shall designate the order in loans under title IV of the Housing Act of which other officials of the Agency shall act for Education Statistics including all func 1950. !or and perform the functions of the Di tions of- rector during the absence or disablllty of (A) the Advisory Council on Education TRANSFERS TO THE GENER \L SERVICES both the Director and the Deputy Director Statistics; and ADMINISTRATION or in the event C1! vacancies in both offices. (B) each component of the Advisory SEc. 310. There are transferred to the Ad (b) There shall be in the Agency 2 As Council on Education Statistics. ministrator of the General .Services Adminis (2) tration all functions of the Secretar.v or sistant Directors, who shall be appointed by The Secretary of Commerce shall as the President, by and with the advice and sure that the collection of data pursuant to Education and of the Department of Educa consent of the Senate. Each Assistant Direc the functions transferred by paragraph ( 1) tion under section 203(k) of the Federal tor shall be responsible for the adminis of this subsection is not repetitive. Property and Administrative Services Act of tra tlon of such Federal assistance programs (b) There are transferred to the Secretary 1949 with respect to donations of surplus of Commerce all functicns of the Secretary property for educational purposes. as may be assigned to him by the Director. of Education and of the Department of (c) The Director may establish not more TRANSFERS TO THE OFFICE OF MANAGEMENT Education under subpart A of part IV of AND BUDGET than 2 Divisions in the Agency. Each Divi title III of the Communications Act of 1934 SE ::. 311. There is transferred to the Office sion shall be headed by an Assistant Direc with respect to telecommunications demon of Management and Budget the Federal Ed tor. stration programs. ucation Data Acquisition Council. There are OFFICE OF GENERAL COUNSEL TRANSFERS TO THE DEPARTMENT OF DEFENSE transferred to the Director of the Office of SEc. 203. There shall be in the Agency SEc. 303. (a) There are transferred to the Manat;ement and Budget all functions of the a General Counsel, who shall be appointed Secretary of Defense all functions and ac Secretary of Education and the Deoartment by the Director. The General Counsel shall tivities relating to- of Education with respect to or being ad provide legal assistance to the Director con ( 1) the operation of schools for dependents ministered by the Federal Education Dat..1. cerning the programs and policies of the of the Depa:::-tment of Defense under the De Acquisition Council. Agency. fense Dependents' Education Act of 1978, TRANSFERS TO THE AGENCY OFFICE OF INSPECTOR GENERAL (2) the Act of September 30, 1950 (Public SEc. 312. (a) There are transferred to the SEc. 204. There shall be in the Agency an Law 874, Eighty-first Congress), rolating to Director of the Education Assistance Agen Office of Inspector General, established in Federal imoact aid, and cy- accordance w1 th the Inspector General Act (3) the Act of September 23, 1950 (Public I 1) all functions of the Secretarv of Edu of 1978 (as amended by section 506(i) of Law 815, Eighty-first Congress), relating to cation and of the Department of Education this Act). Federal impact aid for construction. under- November 6, 1981 CONGRESSIONAL RECORD-SENATE 26951 (A) the Elementary and seconde.ry Educa personnel positions available for performing (b) Notwithstanding any other provision tion Act of 1965; functions transferred by this Act (other than of this Act, no authority to enter into con (B) the Education Consolidation and Im teachers employed in schools for dependents tracts or to make payments under this title provement Act of 1981; of the Department of Defense) shall not ex shall be effective except to such extent or in (C) the Higher Education Act of 1965 ceed 80 percent of the number of full-time such amounts as are provided in advance (other than section 420, part B of title IV, equivalent personnel positions available for under appropriation Acts. a.nd title VI); performing such functions in the fiscal year RELATIONSHIP TO GENERAL EDUCATION (D) the Vocational Education Act of 1963; 1981. PROVISIONS ACT (E) the Education Amendments of 1978; Part B-GENERAL ADMINISTRATIVE PROVISIONS SEc. 415. Except where inconsistent with a.nd GENERAL AUTHORII'Y the provisions of this Act, the General Ed (F) laws relating to the rela.tionship be· ucation Provisions Act shall apply to func tween (i) Howard University, and (11) the SEc. 411. (a) In carrying out any function transferred by this Act, the Director, or any tions transferred by this Act to the extent Department of Education; and officer or employee of the Agency, may exer applicable on the day preceding the effective (2) except as explicitly provided otherwise date of this Act. in thls Act, all functions of ·the Secretary of cise any authority available by law (includ Education, a.nd all functions of the office of ing appropriation Acts) with respect to the TITLE V-TRANSITIONAL, SAVINGS, AND the Secretary of Education and of the De function to the official or agency from which CONFORMING PROVISIONS partment of Education, a.nd of any officer or the function is transferred. Any action of TRANSFER AND ALLOCATION OF APPROPRIATIONS component of .the Department. the Director in exercising such authority AND PERSONNEL (b) There are transferred to the Director shall have the same force and effect as when SEc. 501. Except as otherwise provided in all functions of the Secretary of Education exercised by such official or agency. this Act, the personnel employed in con wtth respect to the Office of the Secretary of (b) The Director shall be the principal nection with, and the assets, 11ab111ties, con Educa.tdon, including the Fund for the Im advisor to the President on education tracts, property, records, and unexpended provement of Postsecondary Education. matters. balance of appropriations, authorizations, INCmENTAL TRANSFERS; EFFECT OF TRANSFERS DELEGATION; REALLOCATION OF FUNCTIONS allocations, and other funds employed, held, SEc. 313. (a.) Whenever a.ny function is SEc. 412. (a) Exce;pt as otherwise pro used, arising from, available to, or to be transferred by this t1.tle to a department or vided in this Act, the Director may delegate made available in connection with the func agency, or to the head of a. department or any function to such officers and employees tions and offices, or portions thereof trans agency, any office or unit of .the Department of the Agency as the Director may designate, ferred by this Act, subject to section 202 of of Education which was principally responsi and may authorize such successive redele the Budget and Accounting Procedures Act ble for administering such function is trans gations of such functions within the Agency of 1950, shall be transferred to the appro ferred to such department or agency. as may be necessary or appropriate. No dele priate department or agency for appropriate (b) Any advisory committee of the De gation of functions by the Director under allocation. Unexpended funds transferred partment of Educatdon giving advice or mak thls section or under any other provision of pursuant to this subsection shall be used ing recommendations that primarily con this Act shall relieve the Director of respon only for the purposes for which the funds cern fundtions transferred to a department siblllty for the administration of such were originally authorized and appropriated. or agency, or to the head of a. department or functions. EFFECT ON PERSONNEL a.gen.cy, is transferred to such depa.rtment or (b) The Director is authorized to allocate SEc. 502. Except as otherwise provided in agency. or reallocate functions among the officers this Act, the transfer pursuant to this Act (c) The transfer of a function or office of the Agency, and to establish, consolidate, of full-time personnel (except special Gov from a.n officer or office to the head of a.ny alter, or discontinue such organizational ernment employees) and part-time person department or agency, or to .the department entitles within the Agency as may be neces nel holding permanent positions shall not or agency, includes a.ny aspects of such func sary or appropriate. cause any such employee to be separated or tion or office vested in a. subordinate of sucb REGULATIONS reduced in grade or compensation for three officer or in a component of such office. SEc. 413. (a) The Director is authorized months after the date of transfer. TITLE IV-ADMINISTRATIVE PROVISIONS to issue regulations- INCmENTAL TRANSFERS PART A-PERSONNEL PROVISIONS (1) relating to the discharge of dut ies SEc. 503. (a) The Director of the Office of specifically assigned to the Director under OFFICERS AND EMPLOYEES Management and Budget is authorized and this Act; directed to make such determinations as may SEc. 401. The Director is authorized to ap (2) relating to proper fiscal accounting for be necessary With regard to the functions, point and fix the compensation of such offi funds appropriated under this Act and the offices, or portions thereof transferred by cers and employees, including attorneys, as method of making payments authorized this Act, and to make such additional in may be necessary to carry out the functions under any Act relating to the payments to cidential dispositions of personnel, assets, of the Director and the Agency. Except as be made by the Director; and 11ab111ties, grants, contracts, property, otherwise provided by law, such officers and (3) which are deemed necessary to reason records, and unexpended balances of appro employees shall be appointed in accordance ably insure that there is compliance with priations, authorizations, allocations, and with the civil service laws under title 5 of the the specific requirements and assurances other funds held. used. arist.ng from, avail United States Code and their compensation required by any Act authorizing programs able to, or to be made available in connec fixed in accordance with title 5 of the United to be administered by the Agency. tion with such functions, offices, or portions States Code. (b) In all other matters relating to the de thereof, a.s may be necessary to carry out the EXPERTS AND CONSULTANTS tails of planning-, development, implement provisions of this Act. The Director of the SEc. 402. The Director may, a.s provided in ing and evaluating programs and projects Office of Management and Budget shall pro appropriation Acts, obtain the services of ex by State and local educational agencies the vide for the termination of the affairs of any perts and consultants in accordance with the Director shall not issue regulations, but may entity terminated by this Act and for such provisions of section 3109 of title 5, United consult with appropriate State, local, and further measures and dispositions as may States Code, and may compensate such ex private educational agencies. Upon request, be necessary to effectuate the purposes of perts and consultants at rates not to exceed the Director shall provide technical assist this Act. the daily rate prescribed for G8-18 of the ance and information designed to promote (b) After consultation with the Director General Schedule under section 5332 of such the development and implementation of ef of the Office of Personnel Management, the title. fective instructional programs and to other Director of the Office of Management and PERSONNEL REDUCTIONS wise assist in carrying out the purposes of Budget is authorized, at such time as the this Act and any Act authorizing the pro Director of the Office of Management and SEc. 403. (a) For the purpose of this sec grams administered by the Agency. tion, full-time equivalent personnel positions Budget provides, to make such determina include-- (c) No regulation issued pursuant to this tions as may be necessary with regard to the (1) all full-time personnel employed by the Act shall have the standing of a Federal transfer of positions within the Senior Agency; statute for the purpose of judicial review. Executive Service in connection with !unc (2) all part-time personnel employed by CONTRACTS tions and offices transferred by this Act. the Agency calculated on the basis of full SEc. 414. (a) Subject to the provisions of SAVINGS PROVISIONS time equivalent positions; and the Federal Property and Administrative SEc. 504. (a) All orders, determinations, (3) all experts and consultants employed Services Act of 1949, the Director is author rules, regulations, permits, grants, contracts, under section 3109 of title 5, United State:::; ized to make, enter into, and perform such certificates. licenses, and prlvlleges- Code, employed to perform functions of the contracts, grants, leases, cooperative agree (1) which have been issued, made, grant Director or the Agency, calculated on the ments, or other similar transactions with ed, or allowed to become effective by the basis of full-time equivalent positions for Federal or other public agencies (including President, any Federal department or agency the number of hours worked by such experts State and local governments) and private or official t.hereof. or by a. court of compe and consultants. organizations and persons, and to make such tent jurisdiction, in the performance of fun (b) At the end of the first three-month payments, by way of advance or reimburse tlons which are transferred under this Act; period beginning after the effective date of ment, as the Director may determine neces and this Act and for each of the fiscal years there sary or appropriate to carry out functions of (2) which are in effect at the time this Act after the number of full-time equivalent the Director or the Agency. taJtes effect, 26952 CONGRESSIONAL RECORD-SENATE November 6, 1981
.. ~all continue in effect according to their after the effective date of this Act, reference (A) by striking out clause (2); ~~rms until modified, terminated, super in any other Federal law to any department, (B) by redesignating clauses (3), (4), and seded, set aside, or revol~ed in accordance commission, or agency or any officer or of (5) as clauses (2), (3), and (4). respec with the Jaw by the President, the Director. fice the functions of which are so trans tively; and the head of a department or agency to which ferred shall be deemed to refer to the Direc (C) by striking out "Secretary of Edu functi.:m is transferred under this Act. tor, other official, or component of the cation" in clause (4) (as redesignated in ~r other authorized official, a court of com Agency or to the head of the department or clause (2) o! this subsection) and inserting petent jurisdiction, or by operation of law. other agency to which this Act transfers such in lieu thereof "Assistant Secretary". (b) ( 1) The provisions of this Act s~all n~t functions. (5) Section 1412(a) (2) of such Act is affect any proceedings, including. no,_ices J~ CONFORMING AMENDMENTS amended by striking out "two years a.fter prcpcsed rnlemaking, or any appllcatwn ~u1 SEc. 506. (a) Section 19(d) (1) of title 3, the effective date of this title" and inserting any license, permit. ce:tificate, or financml United States Code, is amended by striking in lieu thereof "Ja.nuary 1, 1983". assistance p£nding on the e!lective ds.te of out the following: ". Secretary of Educa (6) Section 1412 (c) of such Act is amend this Act before any department, agency. tion". ed by striking out "one year after the ef commission. or component thereof. func (b) Section 101 of title 5, United States fective date of this title" and inserting in lieu thereof "January 1. 1983". tions of which are transferred by this Act; Code, is amended by striking out the follow but such proceedings and applications, to ing: (h) (1) Section 203(a) (1) of the Rehabill the extent that they relate to functions so "The Department of Education.". tation Act of 1973 is amended by striking transferred. shall b~ continued. Orders shall (c) Section 5312 of title 5, United States out "the Secretary of Education,". be issued in such proceedings, appeals shall Code, is amended by striking out the follow (2) Section 507 of such Act is amended by be taken therefrom, and payments shall ing: striking out "the Secretary of Education,". be made pursuant to such orders, as if this ( i) ( 1) Section 2 ( 1) of the Inspector Gen "Secretary of Education.". eral Act of 1978 is amended- Act had :1ot been enacted; and order~ issw~d (d) Section 5314 of title 5, United States in any ~uch proceedings shall contmue m (A) by striking out "the Department of Code, is amended by striking out the follow Education,"; effect until modified. terminated, superseded, ing: O!' revoked by the Director. the head of ?· (B) by striking out "and" after "the Small "Under Secretary of Education.". Business Administration,"; and departm?nt cr agency to which a function 1s (e) ( 1) Section 5315 of title 5, United transferred uncer this Act, by a court of States Code, is amended by striking out the ( C l by inserting a comma and "and the competent jurisdiction. or by operation of following: Education Assistance Agency" after "the Vet law. Nothing in this subs~ctlon shall b3 erns' Administration". "Assistant Secretaries of Education (6). (2) Section 9(a) (1) (C) of such Act is deemed to prohibit the discontinuance or "General Counsel, Department of Educa modifica'i'lon of any such proceedin~; under amended to read as follows: tion. " (C) of the Education Assistance Agency, the same terms and conditions and to the "Inspector General, Department of Edu same extent. that such proceeding cou1d all functions of the Inspector General of cation.". Education relating to functions transferred have been cHscontinued or modified if this (2) Section 5315 of such title is amended Act had uot been enacted. by section 301 of the Education Assistance by adding at the end thereof the following Agency Act;". (2) The Director or the he3.d of a de-art new item: m':lnt or a~rencv to which a function is trans ( 3) Section 11 ( 1) of such Act is amend "Director, Education Assistance Agency.". ed- ferred under this Act is authorized to oro (f) (1) Section 5316 of title 5, United mul~ate regulations providin~ for the ord':lrly (A) by striking out "Education,"; States Code, is amended by striking out the (B) by striking out "or" after "Transpor tr::msfer of pro:eedings continued under par following: agraph (1). tation" and inserting in lieu thereof a com "Additional officers, Department of Edu ma; and (c) Except as provided in subsection (e - cation (4). ( 1) the provisions of this Act sh -:tll not (C) by inserting "or the Director of Edu "Administrator of Education for Overseas cation Assistance," after "Veterans' Affairs,". p,ffect suits commenced prior to the effective Dependents, Department of Education.". d:1te of this Act, and ( 4) Section 11 ( 2) of such Act is amend (2) Section 5316 of such title is amended ed- (2) in all such suits, proceedings shall be by adding at the end thereof the following (A) by striking out "Education,"; had. a-::Jpealc; taken. and jud~ments rendered new items: in the same manner and effect as if this Act "Deputy Director, Education Assistance (B) by striking out "or" after "Transpor had not been enacted. Agency. tation" and inserting in lieu thereof a com ma; (d) No suit, action. o!' other proceeding "Assistant Directors, Education Assistance comm':lnc~d by or against anv officer in the Agency (2) .". (C) by striking out "or" after "the Small official capacity of such individual as an of (g) (1) Section 1410(b) of the Defense Business Administration,"; and ficer of any d~=martment or agency, function<> Dependents' Education Act of 1978 is (D) by inserting "or the Education Assist of which are transferred by this Act. shall amended by striking out "The Secretary of ance Agency," after "the Veterans' Admin abate by reason of the enactment of this Act. Education, in consultation with the Secre istration,". No cause of action by or against any depart tary of Defense," and inserting in lieu REPEALER ment or agencv. functions of which are thereof "The Secretary of Defense". SEc. 507. The Department of Education transferred by this Act, or by or against any (2) Section 1411 (a) of such Act is Organization Act is repealed. officer thereof in the official capacity of such amended to read as follows: officer shall abate by reason of the enactment EFFECTIVE DATE " (a) There is established in the Depart SEc. 508. The provisions of this Act shall of this Act. ment of Defense an Advisory Council on (e) Jf, before the date on which this Act take effect 90 days after the date of enact Dependents' Education (hereinafter in this ment of this Act. takes effect. any department or agency, or section referred to as the 'Council'). The officer thereof in the official cs.pacity of such Council shall be composed of- officer, is a party to a suit, and und':lr this " ( 1) the Assistant Secretary of Defense SECTION-BY-SECTION ANALYSIS OF THE QUAYLE Act any function of S'.tch department, agen for Manpower, Reserve Affairs, and Logistics BILL To TERMINATE THE DEPARTMENT OF cy, or officer is transf::!rre1 to the Director or (hereinafter in this section referred to as EDUCATION to the head of any other der-artment or TITLE I-FINDINGS AND PURPOSE agency then such suit shall be continued the 'Assistant Secretary'), who shall be the with the Director or other appropriate offi chairman of the Council; Sec. 101. Congress finds that parents have cial substituted or added as a party. "(2) twelve individuals appointed by the the primary responsib111ty for the education Assistant Secretary, who shall be individ of their children; States and local govern (f) Orders and actions of the head of the U3.ls versed by tr.aining or ex_?erience in ments have the responsibility for supporting department or agency in the exerci:oe of that parental role; and the Federal role is one functions transferre::l under this Act shall the field of primary or secondary education and who shall include representatives of of assistance and support. A Cabinet-level be subject to judicial review to the same Department of Education threatens to pre extent and in the same manner as if such professional employee organizations, school administrators, sponsors of students en empt the role of parents, States and localities orders and actions had been by the agen::y in determining policy for education. or office, or part thereof, exercising such rolled in the defense dependents' education functions immediately preceding their trans system, and one student enrolled in such Sec. 102. It is the intention of the Congress system; and to protect the rights of States and local gov fer. Any statutory requirements relatin~ to notice, hearings, action upon the record, or "(3) representatives from overseas mil1- ernments and other educational institutions administrative review that apply to any tary commands and from educational orga in setting educational policies. No provision nizations as designated by the Assistant of law regarding any Federal program may be function transferred by this Act shall anply construed to authorize Federal direction, to the exercise of such function by the Di Secretary.". rector or the head of the department or supervision or control over the curriculum, (3) Section 14ll(b) (1) of such Act is program of instruction or personnel of any agency to which the function is transferred amended by striking out "Secretary of Edu by this Act. school or educational system. No funds pro cation" and inserting in lieu thereof "As vided under any Federal program may be REFERENCE sistant Secretary". suspended on the basis of any requirement SEc. 505. With respect to any function (4) Section 1411 (c) of such Act is relating to curriculum, instruction or library transferred b~ this Act and exercised on or amended- resources. November 6, 1981 CONGRESSIONAL RECORD-SENATE 26953 Sec. 103. Provides definitions of terms used Sec. 411 . General authority for carrying national emergency and that excess sup in this Act. out the functions of the Agency is given to plies are disposed of in a manner that the Director. The Director shall be the prin 1 ITLE II-ESTABLISHMENT OF AN EDUCATION m:nimizes the potential for market dis ASSISTANCE AGENCY cipal advisor to the President on education matters. ruptions while providing maximum rev Sec. 201. There is established an Education Sec. 412. The Director may delegate any £nues to acquire other stockpile mate Assistance Agency as a part of the executive function within the Agency as may be nec rials that are in short supply; to the branch of the Federal Government. The essary. Committee on Armed Services. Agency shall be headed by a Director, ap Sec. 413. The Director is authorized to is THE GEORGE WASHINGTON COMMEMORATIVE pointed by the President with consent of t he sue regulations relating to duties specifically Senate. COIN A : T OF 1981 ; NATIONAL SECURITY SILVER assigned under this Act, and relating to ASSESSMENT AND DISPOSAL ACT OF 1981 Sec. 202. In addition to a Director, there proper accounting procedures. In all other shall be a Deputy Director and two Assistant matters, the Director shall not issue regula Mr. McCLURE. Mr. President, today Directors, all appointed by the President with tions, but may consult with local officials to I am joined by my colleague, Senator the consent of the Senate. offer technical assistance and information. SYMMS in introducing two pieces of leg Sec. 203. Th-e Agency shall have a General No regulation issued under this Act shall islation aimed at assuring that any sale Counsel. have the standing of a Federal statute for of silver from the strategic stockpile Sec. 204. The Agency shall have an Inspec the purpose of judicial review. tor General. would be done in a manner that would Sec. 414. The Director is authorized to not adversely affect the silver market. Sec. 205. There is established a Federal enter into contracts. Interagency Committee on Education, to co Sec. 415. The General Education Provisions Over the past 5 months the issue of ordinate Federal programs and insure that Act shall apply to functions transferred by the silver sale has been greatly pub there is no duplication of activities or repeti this Act to the extent applicable before the lic:zed, and rightfully so. Back in June, tive collection of data. transfer. the Wall Street Journal reported on the TITLE III-TRANSFERS OF FUNCTIONS FROM THE TrrLE V-TRANSITION then pro;JOsed silver sale, "little debate DEPARTMENT OF EDUCATION Sec. 501. Personnel and assets employed is expected on either floor as the silver Sec. 301. Transferred to Health and Human in connection with transferred functions sales are relatively minor items in the Services: shall be transferred with those functions. 1982 budget reconciliation bills." The Programs for the handicapped; Sec. 502. Personnel transferred by this Act Library services; Wall Street Journal was wrong, and as I may not be separated or reduced in grade stated before, I am not alone in opposi National Commission on Libraries; for the first three months after the date of Gallaudet, American Printing House for ~he transfer. tion to the sale of silver. Senator SYMMS, Blind, Model Secondary School, Kendall and Sec. 503. The Director is authorized to Congressman CRAIG. Congressman HAN N.T.I.D. make incidental transfers as necessary. SEN and I have not let this issue die. Sec. 302. Transferred to Commerce : Sec. 504. Orders and contracts in effect at We have been joined by many other Education statistics; the time of transfers shall continue in ef Members of Congress as well as a vast Telecommunications demonstration pro- fect according to their terms. number of people all over the country, grams. Sec. 505. Conforming references to other including the State of Idaho. All of us Sec. 303. Trans-ferred to Defense : Federal law. DOD dependents schools; Sec. 506. Conforming amendments to are keeptng the pressure on to stop the Tmpact aid. other Federal law. sale of silver, or at least to redirect the Sec. 304. Transferred to Treasury: Guaran- Sec. 507. The Department of Education silver sale so it will not depress the mar teed Student Loans. Organization Act, which created the De ket price. Introduction of these two bill5 Sec. 305. Transferred to State : partment, is repealed. is not the end of our efforts. Foreign language programs; Sec. 508. This Act shall take effect 90 Back on June 8, 1981, I introduced International programs. days after the date of enactment. Sec. 306. Transferred to National Science S. 1338, a bill which would restructure Foundation: National Institute of Education. the quantity of materials stockpiled. My Sec. 307. Transferred to National Founda By Mr. CHILES (for himself, Mr. legislation addresses the core of the tion on the Arts: Museum services. SASSER, Mr. MELCHER, Mr. problem. That problem is that whenever Sec. 308. Transferred to Veterans Adminis RIEGLE, Mr. ROBERT C. BYRD, an administration is looking for a way tration: Veterans cost-of-instruction pro Mr. BAUCUS, Mr. EIDEN, Mr. to bring in revenues or to obtain dollars grams. BOREN, Mr. BURDICK, Mr. CAN to purchase other minerals for the stock Sec. 309. Transferred to Housing and Urban NON, Mr. DECONCINI, Mr. DODD, pile, it changes the goals of materials so Development: College housing construction Mr. EAGLETON, Mr. EXON, Mr. that an excess of materials is declared loans. FORD, Mr. GLENN, Mr. HEFLIN, Sec. 310. Transferred to Government Serv and sold off. ices Agency: Surplus property for educa Mr. HUDDLESTON, Mr. INOUYE, It is like a minerals slush fund, and tional purposes. Mr. JACKSON, Mr. JOHNSTON, Mr. this year the excess material is silver. Sec. 311. Transferred to Office of Manage KENNEDY, Mr. LEAHY, Mr. LEVIN, My legislation would prevent this by ment and Budget: Federal Education Data Mr. MATSUNAGA, Mr. METZEN giv;ng Congress direct involvement in Acquisition Council. BAUM, Mr. MITCHELL, Mr. NUNN, setting stockpile goals to insure that Sec. 312. Transferred to the Education As Mr. PELL, Mr. PRYOR, Mr. RAN we have adequate strategic minerals sistance Agency : DOLPH, Mr. SARBANES, Mr. WIL Primary and secondary school programs; available during a time of crisis. The LIAMS, Mr. ZORINSKY, and Mr. time to worry about strategic mineral Higher education programs (other than CRANSTON): GSL); availability is now, not during a crisis Vocational education; S.J. Res. 120. Joint resolution direct when a shortage of minerals might cause Howard University; ing the President to assure an adequate the United States to alter foreign policy. Education block grant; flow of affordable credit to sma,ll bor I believe this bill will enable us to meet Other programs not specifically transferred rowers; to t'he Committee on Banking, our own demands in time of a national from Department of Education. Housing, and Urban Affairs. emergency. Sec. 313. Whenever a function is trans (Remarks on this legislation appear Recognizing the importance of silver ferred, any office in the Department of Edu elsewhere in today's RECORD.) cation responsible for that function is also to our national security, the legislation I transferred. introduced would result in a 1-year sup TITLE IV-ADMINISTRATIVE PROVISIONS By Mr. McCLURE DECLARATION OF POLICY pendence on these sources of supply in times previously Transaction Fund to acquire other needed ysis of the factors set forth in paragraph (2) scheduled for Friday, November 13, has strategic and critical mart;erials. and other relevant factors. (4) (A) Pursuant to paragraph (1), should been postponed until Tuesday, Decem (c) The Congress further declares that any ber 1, at 9:30a.m. An additional day of silver in the stockpile should be disposed of the President taking into account the fl\('tors in a form and quantity that ( 1) can be specified in paragraph (2) find the silver to oversight hearings has been scheduled afforded by and that is readily available rto be excess to stockpile needs and not with on the domestic coal transportation net a large number of U.S. citizens and (2) will standing any other provision of law, the work for Thursday, December 3, at 9:30 be used primarily for domestic consumption silve;.· shall be disposed of by minting legal a.m. instead of displacing silver already in the tender, bullion coins in such quantities as The subcommittee has also scheduled world market. necessary to dispose of the excess silver. (B) The authority contained in subsection r, hearing to considerS. 1660, to validate AMENDMENTS TO SECTION 201 OF THE OMNI (f ) (4) (A) shall not become effect ive until certain oil placer mining claims in Hot BUS BUDGET RECONCILIATION ACT OF 1981 the Department of the Treasury, taking into Springs County, Wyo., on Tuesday, No SEc. 4. (a) Section 201(e) of the Omnibus consideration such pertinent factors as the vember 24, at 9 a.m. Reconciliation Act of 1981 (Public Law 9'7- fluctuating value of silver over time and im All of the subcommittee hearings will 35) is amended to read as follows: portance of maximizing public demand, re be held in room 3110 of the Dirksen Sen (e) "Except for disposal under rthe au ports not later than 3 months after the date ate Office Building. thority of subsections (a) (7), (b) (1), and of enactment of the National Security Silver Those wishing to testify or who wish (c) ( 1) made after the date of the enactment Assessment and Disposal Act of 1981, to the of the National Security Silver Assessment Committees on Armed Service3 and Banking, to submit written statements for the and Disposal Act of 1981 , any disposal under Housing, and Urban Affairs of the Senate and hearing record should write to the Com the authority of subsection (a) , (b) , or (c) House of Representatives (i) the design that mittee on Energy and Natural Resources, shall be carried out in accordance with the shall appear on each side of the coin, (11) Subcommittee on Energy and Mineral provisions of the Strategic and Critical Ma the size of the coin, (111) the silver content Resources. Room 3104, Dirksen Senate t erials Stock Piling Act (50 U.S.C. 98 et seq.). an::l percentage of purity, (iv) the face of Office Building, Washington, D.C. 20510. Disposals under the authority of subsections each coin that is to be minted and (v) the For further information regarding (a)(7), (b)(1),and (c)(1) a.fterthedateof timeframes and quantities to be sold. In com these hearings you may wish to contact the enactment of the Naltiona.l Security Sil plling its report, the Department of Treasury ver Assessment and Disposal Act of 1981, shall consult with representatives of the Mr. Roger Sindelar of the subcommittee shall be carried out under the provisions of numismatic, investment and precious metal staff at 224-4236. subsection (f) (4) of this Act as amended." commodities industries. (b) Section 201(f) of the Omnibus Recon (C) All coins minted pursuant to tJhis sec ciliation Aot of 1981 (Public Law 97-35) is tion shall be exchanged at a price equal to AUTHORITY FOR COMMITTEE TO amended to read as follows: the greater of (1) the face value of such MEET ( 1) The authority contained in subsec coins; or (2) the amount calculated by the Secretary of the Treasury to include a.ll costs Mr. COCHRAN. Mr. President, I ask tions (b) (1) and (c) (1) shall not become unanimous consent that the Committee effective unless the President not later than of manufacture, plus a surcharge of not more September 1, 1982, determines that the sdlver than 20 per centum of such cost and shall on Energy and Natural Resources be au authorized for disposal by such subsections be distributed to the public through estab thorized to meet during the session of is excess to the requirements of the stock lished domestic precious metal dealers. the Senate on Friday, November 6, to pile as of that date. No disposals shall be (D) All proceeds from the coinage sale conduct an oversight hearing to consider made under the authority contained in sub shall be deposited into tlhe National Defense the implementation of title I of the Nat section (a) (7) after the effective date of the Stockpile Transaction Fund solely for the ac ural Gas Policy Act of 1978. enactment of the National Security Silver quisition of strategic and critical materials under Sec. 6(a) of the Strategic and Critical The PRESIDING OFFICER. Without Assessmeillt and Disposal Act of 1981. unless objection, it is so ordered. the President redetermines, not later than Materials Stock Pillng Act, as amended (50 September 1, 1982, that the silver authorized u.s.c. 98e). for disposal by such subsection is excess to (E ) The Comptroller General CY! the United the requiremelllts of the stockpile. States or any duly authorized representative, ADDITIONAL STATEMENTS (2) A determination by the President un shall have access for purposes of monito·ring, der paragraph ( 1) shall be based upon con audit, and examination, to any books, rec VETERANS DAY sideration of such factors as the President ords, papers and documents of any Federal considers relevant, including the following agency pertaining to the silver coinage pro e Mrs. KASSEBAUM. Mr. President. factors: gram. since 1926 when Congress officially pro (A) The demand for silver to meet de AMENDMENTS TO SECTION 202 OF THE OMNIBUS claimed Armistice Day as a national fense, essential civilian, basic industrial, and BUDGET RECONCILIATION ACT OF 1981 holiday, we as a nation have honored monetary requirements, taking into account SEc. 7. Section 202 of the Omnibus Recon our veterans and war heroes on Novem the most recent "Defense Guidance" used by ciliation Act of 1981 (50 u.s.c. 98d note) is ber 11 of each year. Armistice Day was the Department of Defense in programming amended by inserting the following: originally intended as a celebration of general purpose conventional forces as well (c) There are authorized to be appropri the end of the "war to end all wars." as historical monetary uses of silver as a taed such sums as may be necessary to carry medium of payment to foreign workers and out the provisions of Sec. 201, subsection (f) With the passage of time and two inter troops during times of national emergency. ( 4) . Such appropriations shall come solely vening wars, it became a day for honor~ (B) The projected magnitude of the in from the National Defense Stockpile Trans ing all Americans who served in the crease in production as well as the accuracy action Fund establislhed under Sec. 9 of the Armed Forces during our Nation's wars. and reliability of the data used in projecting Strategic and Critical Materials Stock Pil1ng American soldiers have been engaged increases in both domestic and reliable for Act, as amended (50 U.S.C. 98h.) eign production capacity, taking into in conflict many times, but the longest account the lead times associated with ex period of war in our history was our panding capacity and obtaining such re ADDITIONAL COSPONSORS participation in the Indochinese war quirements as the necessary labor, equip from 1962 to 1975. In that war, 8,744,000 ment, transportation, and energy. SENATE JOINT RESOLUTION 34 American men and women served. An (C) The current rellabillty of supplies At the request of Mr. GoLDWATER, the enormous number were killed in action from foreign sources and the economic and Senator from North Carolina equal partner with the United States and these alleged news accounts are pure again ca.ll upon Japan to heed the voices t he NATO allies and assume its proper role fantasy. First of all, they show no fa in th:s country who are seeking to place vis-a-vis multiplying Soviet power ... We miliarity with routine events of par our defense relationship on a more must recognize our proper responsibilities liamentary procedure in the Senate. stable basis. All that we seek is to make and meet them as part of a "Grand Alliance" The purpose of introducing the amend Japan equal partners in the fight for of all free nations commit ted to the princi ment was technical so that the debate security and freedom. If Japan continues ples of peace and freedom, to progress, and with the distinguished chairman-a de to ignore that call, Japan's relationship to a better future. bate which was prearranged with his co with the United States will be very, very Moreover, Mr. President, it was only a operation-could take place in the con- deeply disrupted.e 26958 CONGRESSIONAL RECORD-SENATE November 6, 1981 THE NEW UNEMPLOYMENT RATE CONSIDERATION OF CERTAIN s. 778 MEASURES ON THE CALENDAR Be it enacted by the Senate and House of Mr. KENNEDY. Mr. President, today's Representatives of the United States oj Amer figure on unemployment is the worst Mr. STEVENS. Mr. President, I ask ica in Congress assembled, That section 2 of news for the economy in the past 6 unanimous consent that the Senate pro the Act entitled "An Act to authorize the years. The unemployment rate_ has ceed to consider Calendar No. 250, Senate Smithsonian Institution to plan for the de surged t<:> 3 percent _acros~ the Nat10n, a Resolution 192; Calendar No. 227, S. 778; velopment oi the area south of the original rise of half a point m a smgle month. Calendar No. 356, Senate Resolution 225; Smithsonian Institution Building adjacent In Massachusetts, the rate clim~ed and Calendar No. 357, Senate Resolution to Independence Avenue at Tenth Street, Southwest, in the city of Washington", ap even more steeply, from 6.4 t::> 7.9 p~r 222. Mr. ROBERT C. BYRD. Mr. President, proved July 20, 1979 (Public Law 96-36), is cent in the past mo:::1th-the largest m- amended to read as follows: crease in any of the 50 States. . reserving the right to object, and I shall "S:sc. 2. Effective October 1, 1981, there is The soaring rate of unemployment 1.s not object, what was the second in the authorized to be appropriated to the Board yet another system of our sick econo:ny. list? of Regents of the Smithsonian Institution In his Labor Day address to the ~at1on, Mr. STEVENS. Calendar No. 227, I say $1,000,000 to carry out the purposes of this the President promised . tha~. his ~co to my good friend. Act.". nomic program would brmg JObs, Jobs, Mr. ROBERT C. BYRD. Mr. President, I have no objection. Mr. STEVENS. I do move to recon jobs and more jobs." But so_ far, wha~ we sider the vote by which the bill passed. have seen is "lost jobs, lost JObs, lost JObs The PRESIDING OFFICER. Without Mr. ROBERT C. BYRD. I move to lay and more lost jobs." . . . objection, it is so ordered. that motion on the table. we are witnessing the d1smtegrat10~1 The motion to lay on the table w~s of the Reagan economic policy. Their agreed to. plan just will not work. It was flawed BUDGET ACT WAIVER from the beginning. They pledged tore store prosperity. But instead they have The resolution author a different direction on the economy. of the Smithsonian Institution's original izing supplemental expenditures by the The President must «hoose. The admin building, now known as the castle. The specified sum is included in the Pres Committee on the Judiciary, 'was con istration must speak with a single voice ident's fiscal year 1982 budget request. The sidered and agreed to ns follows: on economic policy, not the three Appropriations Comittees of the Senate and S. REs. 222 headed monster we hear today. the House of Representatives have therefore Resolved, That section 2 of the Senate As the President once asked, are we had adequate notice of this authorization. Resolution 53, Ninety-seventh Congress. better off today than we were before? Thus, congressional consideration of this agreed to March 3 (legislative day, February In November 1981, the answer is clearly authorization will in no way interfere with or 16), 1981, is amended by striking out tbc no. Millions of Americans are far worse delay the appropriations process. amounts "$4.272,722" and "$172.490" and in off today than they were in January serting in lieu thereof "$4,398,692" and Mr. STEVENS. I move to reconsider "$179,990", respectively. when the President took office. The ques the vote by which the resolution passed. tion the President asked has now come Mr. ROBERT C. BYRD. I move to lay Mr. STEVENS. I do move to reconsider back to haunt him, and it is time he that motion on the table. the vote by which the resolution passed. found a better answer. The motion to lay on the table was Mr. ROBERT C. BYRD. I move to lay What the country needs is a serious agreed to. that motion on the table. economic policy to deal with our serious The motion to lay on the table was economic problems. We do not need agreed to. more tax increases or deeper spending DEVELOPMENT OF AREA SOUTH OF cuts that hurt the middle class and the THE ORIGINAL SMITHSONIAN IN unemployed. What we do need is real STITUTION BUILDING EXECUTIVE SESSION istic steps to bring interest rates down The bill r gene!"al. Carns, Michael P. C., to be brigadier There being no objection, the Senate MccLaren, Wllliam G., to be major general. general. proceeded to the consideration of ex Marks, John B., Jr., to be major general. Casey, Aloysius G ., to be brigadier general. ecutive business. Marquez, Leo, to be major general. Cassidy, Duane H., to be brigadier general. Mr. STEVENS. Mr. Fresident, I as~{ Marshall, James H., to be major general. Caudry, Robert D., to be brigadier general. unanimous consent that those nomina Masterzon, Wllliam E .. to be m:1jor general. Cbarles, William M., Jr., to be brigadier tions be considered and confirmed en Maxson, William B., to be major general. general. McCarthy, Robert F., to be major general. Connolly, Joseph H., to be brigadier geri bloc. McCartney, Forrest S., to be major general. The PRESIDING OFFICER. Without eral. McCartney, Keith D., to be major general. Constantine, William M., to be brigadier objection, the nominations are con Mohney, Russell E., to be major general. general. sidered and confirmed en bloc. Morris, Harry A., to be major general. Cooney, WllS()n C., to be brigadier general. Nugteren, Cornelius, to be major general. The nominations considered and con Craig, Thomas L., to be brigadier ~eneral. Palmerton, Leighton R., to be major firmed en bloc are as follows: Cunningham, Charles J ., Jr., to be briga- general. dier general. DEPARTMENT OF STATE Patton, Marvin C., to be major general. Geoffrey Swaebe, of California, to be the Paullc, John R ., to be major gene::al. Curtis, Lewis G., to be brigadier general. Representative of the United States of Amer Payne, Don H., to be major general. Darling, Thomas G., to be brigadie-r general. Ica to the European Office of the United Na Peek, Kenneth L., Jr., to be major general. Davis, Milford E., to be brigadier general. tions, with the rank of Ambassador. Peterson, Mllton R., to be major general. Dever, James C., Jr., to be brigadier general. Dlvioh, Chris 0., to be bl'igadier general. Jean Broward Shevlin Gerard, o! New Pfautz, James C., to be major general. Pickitt, John L., to be m:1jor general. Doran, John J., Jr., to be brigadier general. York, to be Ambassador. Doyle, William L., Jr., to be brigadier Piotrowsl~i. John L., to be major general. Evan Griffith Galbraith, of Connecticut, to general. be Am'bassador Extraordinary and Pleni Powers, Winston D., to be majo~ general. Randerson, John T., to be major general. D·reyer, Christian F., Jr., to be brigadier potentiary of the United States of America general. to France. Reynolds, Marc C., to be major general. Rider. Graham W .. to be major general. Dugan, Michael J., to be brigadier general. Robert L. Barry, of New Hampshire, to be Rogers, Albert G., to be major gener-al. Dunwoody, Richard H., to be brigadier Ambassador Extraordinary and Plenipoten Rohr, Davis C., to be major general. general. tiary o! the United States of America to Russ, Robert D., to be major general. Durham, Archer L., to be brigadier general. Bulgaria. Saxer, Richard K., to be major general. Dyer, Pintard M., III, to be brigadier BOARD FOR INTERNATIONAL BROADCASTING Schrupp, Walter C. , to be major general. general Mark Goode, of California, to be a member Secord, Richard V., to be major general. Erickson, Duane H., to be brigad1er general. of the Board for International Broadcasting. Sherman, Stuart H ., Jr., to be major Ferguson, Alonzo L., to be brigadier general. general. U.S. INTERNATIONAL DEVELOPMENT Forgan, David w., to be brigad·ier genernl. COOPERATION AGENCY Smith, Carl R., to be major general. Smith, Ferry M. , to be major gene!·al. Gera.n, Daniel B., to be brigadier general. L. Ebersole Gaines, of Idaho, to be Execu Smothermon, JameJ P., to be major Giddings, Edward N., to be brigadier tive Vice President o! the Overseas Private general. general. Investment Corporation. Spangrud, Caspe~ T., to be major general. Goodman, Donald W., to be brigadier U.S. AIR FORCE Taylor, Robert C., to be major general. general. Ushe~·. William R., to be major general. Gorton, William A., to be brigadier general. The following-named officers for perma Granger, James I., to be brigadier general. nent promotion in the U.S. Air Force. Vojvodich, Mele, Jr., to b::l major general. Watkins, Jack L., to be major general. Griffith, John E., to be brigadier general. LINE OF THE AIR FORCE Whitlatch, Wayne E., to be major general. Hamm, Charles R., to be brigadier general. Abrahamson, James A., to be major gen- Woods, Charles E., to be major general. Hansen, Alfred G., to be brigadier general. Harbour, Elbert E., to be brigadier general. eral. CHAPLAIN Acker, Wllliam P ., to be major general. Harpe, Winfield S., to be brigadier general. Ahmann, James H., to be major general. Carr, Richard, to be major general. Hatch, Monroe W., Jr., to be brigadier gen- Armstrong, Spence M., to be major general. DENTAL CORPS eral. Baginski, James I., to be major general. Kolodny, Stanley C., to be major general. Heinz, Edward J., to be brigadier general. Baxter, Walter H., III, to be major general. Hickey, Thomas J., to be brigadier general. Beck, Stanley C., to be major general. MEDICAL CORPS Hocker, Jesse S., to be brigadier general. Bedke, Ernest A., to be major general. Bralllar, Max B., to be major general. Hodges, Paul H., to be brigadier general. Bennett, Donald W., to be major general. Chesney, Murphy A., to be major general. Hughes, Harley A., to be brigadier general. Boverie, Richard T., to be major general. Ord, John W., to be major general. Hyde, John P., to be brigadier general. Bowling, Melvin G., to be major general. Unger, Howard R., to be mEI.jor general. Ingram, Richard A., to be brigadier general. Broadwater, Theodore D., to be major Jacobs, Delbert H., to be brigadier general. LINE OF THE AIR FORCE Jacobson, Ralph H., to be brigadier general. general. Abel, Richard F ., to be brigadier general. Brown, Blll V., to be major general. Johnson, Hansford T., to be brigadier gen- Aldridge, Donald 0., to be brtga.dier eral. Brown, James L., to be major general. general. Brown, James R., to be major general. Jones, James G., to be brigadier general. Brown, Norma E., to be major general. Alexander, Michael H., to be brigadier Kaehn, Albert J ., Jr., to be brigadier gen- Buck, John T ., to be major general. general. eral. Duckman, Louis C., to be major general. Alkire, Melvin G., to be brigadder generaL Karns, Robert C., to be brigadier general. Burns, Kenneth D., to be major general. Autery, Clarence R., to be brigadier general. Kimsey, Melbourne, to be brigadier general. Burpee, Richard A., to be major general. Babcock, Leon W., Jr., to be brigadier Kirk, William L., to be brigadier general. Campbell, Wllliam J., to be major general. generel. Lamberson, Donald L., to be brigadier gen- Cathey, Carl H., Jr., to be major general. Barnes, Jerome R .. Jr., to be brigadier eral. Chain, John T., Jr., to be major general. general. Larson, Gerald D., to be brigadier general. Chubb, Melvin F., Jr., to be major general. Beckel, Robert D .. to be brigadier general. Lary, Bu!ord D., to be brigadier general. Eddins, Nell L., to be major general. Beer, Carl N., to be brigadier general. Lasater, John R., to be brigadier general. Edwards, George A., Jr., to be major Bell, Kenneth H., to be brigadier general. Lenski, Albert J ., to be brigadier general. general. Bishop, Charles E., to be brigadier general. Litke, Donald P., to be brigadier general. Edwards, Jay T .. III, to be major general. Boddie, James T .. Jr.. to be brigadier Lveker, Rano E., to be brigadier general. Enney, James C., to be major general. general. Lukens, Leland K ., to be brigadier general. Bowden, William P .. to be brigadier gen Lustig, Sheldon J., to be brigadier general. Evans, Donald L., to be major general. Mall, William J., Jr., to be brigadier general. Fulcher, Martin C., to be major general. eral. Brandt, Thomas C., to be brigadier general. Masterson, Gordon P., to be brigadier gen- Garrison, Lawrence D., to be major general. eral. Goodall, Harry A., to be major general. Breckner, William J., Jr., to be brigauier Graham, Trwin P., to be major general. general. McCann, Robert I., to be brigadier general. Gray, David L., to be major general. Brooks, Elmer T., to be brigadier genera:. McCarthy, James P .. to be brigadier gen Gregory, Jack I., to be major general. Brown, Don:::~.Id D., to be brigadier general. eral. Haeffner, Fred A., to be major general. Brown, Stanford E., to be brigadier general. McCausland, Charles, to be brigadier gen Hall, Titus C. , to be major general. Bruno, America P., to be brigadier general. eral. Halloran, Patrick J., to be major general. Budner, John R., to be brigadier general. er!i.cinerney, Thomas G., to be brigadier gen- He.cker, Guy L., Jr., to be major general. Buhrow, Robert E .. to be brigadier general. 26960 CONGRESSIONAL RECORD-SENATE Nouember 6, 1981
Mcreak, Merrill A., to be brigadier general. CHAPLAIN received by the Senate and appeared in the Meyer, Richard L., to be brigadier general. Collins, John A., to be brigadier general. Congressional Record on October 27, 1981. be brlgadier Alr Force nomin Monahan, George L., Jr., to JUDGE ADVOCATES atlons beginning Rallin J. general. Aars . to be colonel, and ending Fred J. Moore. Joseph D., to be brigadier general. Ginsburg, Gordon A., to be brigadier Witzgall, to be colonel, which nominations Morgan, Joe P., to be brlgadier general. general. were received by the Senate and appeared in Nelson, Michael A., to be brigadier general. Lowry, Joseph R., to be brigadier general. the Congressional Record on October 27, Nichols, David L., to be brigadier general. Teagarden, C. C., to be brigadier general. 1981. Oaks, Robert C., to be brigadier general. MEDICAL CORPS Navy nominations beginning Alan H. Ben- Odgers, Peter W., to be brigadier general. Doppelt, Frederic F., to be brigadier gen- nett, to be lieutenant commander, and end- Overacker, William E., to be brigadier gen- eral. ing Patrick A. Shannon, to be lieutenant eral. Greendyke, William H., to be brigadier commander, which nominations were re- Padden, Maurice C., to be brigadier general. general. ceived by the Senate and appeared in the Patterson, Robert B., to be brigadier gen- Miller, Monte B., to be brigadier general. Congressional Record on Ootober 21, 1981. eral. Parker, Gerald W., to be brigadier general. The nomination of Floyd A. Rauch, Jr., Patton, David L., to be brigadier general. Rogers, Bealer T., Jr., to be brigadier gen- U.S. Marine Corps, for reappointment to the Peat, Randall D., to be brigadier general. eral. gracie of chief warrant officer (W-2) in the Pedroli, Attilio, to be brigadier general. Vandenbos Kermlt Q., to be brigadier U.S. Marine Corps, which was received by Perroots, Leonard H., to be brigadier gen- the Senate and eral. general. appeared in the Congres- CORPS sional Record on October 21, 1981. Petty, Robert 0., to be brigadler general. MEDICAL SERVICE Pettyjohn, Jimmy C., to be brigadier gen- Wagner, Donald B., to be brigadier general. Mr. STEVENS. Mr. President, I move eral. NURSE CORPS to reconsider the vote by which the nom- Plowden, Robert B., Jr., to be brigadier gen- Wells, Sarah P., to be brigadier general. inations were considered and confìrmed. eral. U.S. ARMY Mr. ROBERT C. BYRD. I move to lay Poe, Eugene M., Jr., to be brigadier general. that motion on the Poore, The following named Judge Advocate Gen- table. Walter H., to be brigadier general. The Powers, George B., Jr., to be brigadler gen- eral Corps oíñcer for appointment in the motion to lay on the table was eral. Regular Army of the United States, to the agreed to. Prather, Gerald L., to be brlgsdler general. grade indicated. Mr. STEVENS. Mr. President, I ask Preston, Raymond C.. Jr., to be brlgadler Col. Donald Wayne Hansen, XXX-XX-XXXX , unanimous consent that the President be general. Judge Advocate General Corps, U.S. Army, to notified of the confirmation of the nom- Prince, Philip S., to be brlgadler general. be brigadier general, Judge Advocate General inations. Corps. Pryor, Rlchard W., to be brlgadler general. The PRESIDING OFFICER. Without Rachel, Allen K., to be brigadler general. NOMINATIONS PLACED ON THE SECRETARY'S objection, it is so ordered. Randolph, Bernard P., to be brlgadier DESK IN THE AIR FORCE, NAVY, AND MARINE general. CORPS - Rans, Donald L., to be brigadier general. Air Force nominations beginning Theodore LEGISLATIVE SESSION Richards, Thomas C.. to be brigadler M. Allen, to be lieutenant colonel, and end- general. ing Charles E. Wilson, to be lieutenant colo- Mr. STEVENS. Mr. President, I ask Rogers, Craven C., Jr., to be brlgadler nel, which nominations were received by the unanimous consent that the Senate re- general. Senate and appeared in the Congressional sume the consideration of legislative Rosenberg, Robert A., to be bridgadier Record on October 6, 1981. business. general. Air Force nominations beginning Amri.t S. There being no objection, the Senate Sawyer, Thomas W., to be brigadier general. Abing, to be first lieutenant, and ending resumed the Schwankl. Gerald C., to be brigadier Wayne E. Ellis, to be captain, which nomi- consideration of legislative general. nations were received by the Senate and ap- business. Sechler, Henry J., to be brlgadier general. peared in the Congressional Record on Octo- Shaud, John A.. to be brigadier general. ber 22, 1981. ORDERS FOR MONDAY, Shaw, William M., Jr., to be brigadier Air Force nominations beginning Densel K. NOVEMBER 9, 1981 general. Acheson, to be colonel, and ending Hubert Sheppard, Jack W., to be brigadier general. E. Wrenn, to be colonel, which nominations ORDER FOR RECESS UNTIL MONDAY were received by the Senate and appeared in Shields, William L., Jr., to be brigadier The PRESIDING OFFICER. The Sen- general. the Congressional Record on October 27, 1981. ator from Shuler, Ellie G., Jr., to be brigadier general. Air Force nominations beginning Ray- Alaska is recognized. Skipton, Charles P., to be brigadier general. mond E. Abel, Jr., to be lieutenant colonel, Mr. STEVENS. Mr. President, I ask Smith, Monroe T., to be brigadler general. and ending David G. Wood, to be lieutenant unanimous consent that when the Sen- Springer, Robert D., to be brigadier general. colonel, which nominations were received by ate completes its business today, it stand Steere, Richard E., to be brigadier general. the Senate and appeared in the Congres- in recess until the hour of 12 meridian Stihl, John T., to be brigadier general. sional Record on October 27, 1981. on Monday, November 9. Air Force nominations beginning Francis Storrie, John H., to be brigadier general. The PRESIDING OFFICER. Without Stukel, Donald J.. to be brigadier general. W. Ahearn, to be lieutenant colonel, and objection, it is so ordered. Swalm, Thomas S., to be brigadier general. ending James C. Rock, to be lieutenant colo- Thurman, William E., to be brigadier nel, which nominations were received by ORDER FOR RECOGNITION OF SENATOR PACKWOOD general. the Senate and appeared in the Congres- Mr. STEVENS. Mr. President, for sional Record on October 27, 1981. Tibbetts, Larry N., to be brigadier general. Monday, November 9, following the rec- Tidwell, Marlon F., to be brigadier general. Air Force nominations beginning Michael ognition of the two leaders under the Tobin, Thomas G.. to be brigadier general. J. Mansfield, to be lieutenant colonel, and standing order on Monday, I ask unan- Todd, Harold W., to be brigadier general. ending Mark H. Fox, to be major, which nominations were received by the Senate and imous consent that Senator PACKWOOD Tolbert, William T., to be brlgadier general. 15 min- Urschler, Regis F. A. to be brigadier general. appeared in the Congressional Record on be recognized for not to exceed Vaught Wilma L., to be brlgadier general. October 27, 1981. utes for a special order. Violett, Russell L., to be brigadier general. Air Force nominations beginning John C. The PRESIDING OFFICER. Without Vogt, Donald A., to be brlgadier general. Aarni. Jr.. to be lieutenant colonel, and end- objection, it is so ordered. Wacker, Rudolph F., to be brigadier ing Hubert E. Wrenn, to be lieutenant colo- general. nel, which nominations were received by the - Senate and appeared in the Congressional general. Wagoner, Paul D., to be brigadier Record on October 27, 1981. ORDER FOR PERIOD FOR TRANS- Ward, Brien D., to be brigadier general. MORNING Air Force nominations beginning Wiley F. ACTION OF ROUTINE Webb, William B., to be brigadier general. Adams, to be major, and ending Adrian A. BUSINESS Weiss, Bernard L., to be brigadier general. Williamson, to be major, which nominations Mr. STEVENS. Mr. President, follow- Wharton, Browning C., Jr. to be brigadier were received by the Senate and appeared in the special order just provided for general. the Congressional Record on October 27, 1981. ing Mr. PACKWOOD, I ask unanimous con- Williams, Gordon E., to be brigadier gen- Alr Force nominations beginning Nicholas eral. sent that there be a period for the trans- Abate, to be major, and ending Dan 0. business not Williams, Harold J. M., to be brigadier Yoshiì. to be major, which nominations were action of routine morning general. received by the Senate and appeared in the to exceed 30 minutes, with statements Winne, Clinton H., Jr., to be brigadler Congressional Record on October 27, 1981. limited therein to 5 minutes each, on general. Air Force nominations beginning Roy L Monday. Wright, Clifton D., Jr., to be brigadier Aanerud, to be major, and ending Grover E. The PRESIDING OFFICER. Without general. Wroe, to be major, which nominations were objection, it is so ordered. November 6~ 1981 CONGRESSIONAL RECORD-SENATE 26961
ORDER FOR CONSIDERATION OJ' EXPORT upon truly anticompetitive activities rather restraint in considerations of justifiability. ADMINISTRATION AT 1:30 P.M. than outmoded and exotic theories. We have Second, some or the standards by which firmly enforced the law that forbids federal state and federal statutes have been declared Mr. STEVENS. Mr. President, I ask employee.:; from striking. We have opposed unconstitutional-and, in particular, some of unanimous consent that, at 1:30 p.m. on the distortion of the meaning of equal pro the analysis of so-called "fundamental Monday, the Senate turn to considera tection by courts that mandate counterpro rights" and "suspect classifications." And tion of Calendar No. 115, S. 1112, the ex duct.l.ve busing and quotas. We have helped third, the extravagant use of mandatory in port administration bill. There are a few to se-lect appointees to the federal bench who junctions and remedial dP.creP.s . amendments to the bill and there is the understand the meaning of judticial restraint. Article III of the Constitution limits the possibility of a time agreement being A::; significant as au t hese change.:; are. jurisdiction of the federal courts to the con however, they represent only a beginning. sideration of cases or controversies properly reached on the bill on Monday, but none Today, I will discuss the next stage in this brought before them. Nevertheless, in recent is in existence now. proce.:;s. We intend, in a comprehensive way, years, a weakening of the courts' resolve to The PRESIDING OFFICER. Is there to identify those principle.:; that we will urge abide by the case or controversy requirement objection? Without objection, it is so upon the federal courts. And we intend to has allowed them greater power of review ordered. identify the cases in which to make our ar over government action. Often, the federal guments- all the way to the Supreme Court. government itself has in the past moved we believe that the groundswell of conserva courts to show less deference to the bounda ROUTINE MORNING BUSINESS tism evidenced by the 1980 elect.ion makes ries of justiciab111ty-in particular, in envi Mr. STEVENS. Mr. President, I ask this a.n especially appropriate time to urge ronmental litigation. The Justice Depart upon the courts more principled bases that ment will henceforth show a more responsi unanimous consent that there now be a would diminish judicial activ-ism. History ble concern for such questions. We wlll as period for the transaction of routine teaches us that the courts are not unaffected sert the doctrine in those situations that morning business, during which Sena by major public change in political attitudes. involve any of its four elements-sta-nding, tors may speak for not to exceed 15 min As the great jurist Benjamin Cardozo once ripeness, mootness, and presence of a politi utes· that following that, the Senate wrote: cal question. Vindicating the principle of stand in recess pursuant to the previous "The great tides and currents which en justiciab111ty would help return the courts order. gulf the rest of men do not turn aside in to a more principled deference to the actions The PRESIDING OFFICER. Without their course and pass the judges by." of the elected branch~. Consider for a moment the 1900 Presiden Like the concept of judicial restraint it· objection, it is so ordered. tial election. That year, a burning issue of self, the constitutional requirement of jus the campaign was whether or not the pro ticiab111ty limits the permissible reach of the tections of the Constitution automatically courts irrespective of the desirab1Uty of THE USURPATION OF POWER BY attached to the territories annexed after the reaching the underlying legal issues involved. FEDERAL JUDGES Spanish-American War. Paralleling the pub The doctrine of justiciab111ty therefore lim lic opinion expressed in the election, in 1901 its the possib111ty of judicial encroachment Mr. THURMOND. Mr. President, on the Supreme Court held in the four Insular October 29, 1981, Attorney General Wil upon the responsib111ties of the other Cases that it d·id not. In explaining that re branches or the states--even in those si tua liam French Smith addressed the Fed sult, the columnist Finley Peter Dunne tions when the other branch or level of gov eral Legal Council at Reston, Va. His caused his fictitious Irish bartender Mr. ernment has chosen not to act. Some respon speech was a major statement of admin Dooley to speak the following prophetic sibilities are entrusted solely to nonjudicial istration policy toward the ongoing prob words: processes. In those instances, we intend to lem of encroachments by Federal courts "No matter whither th' Constitution fol urge the judicial forebearance envisioned by in areas of Government properly belong lows th' fiag or not, th' Supreme Court fol the Constitution. ing to the President, Congress, and the lows th' lllicitlon returns." Just as courts have sometimes overstepped Federal judges in 1981-as in 1901-re the proper bounds of justiciabillty, their several States. main free from direct popular contr:>l. analyses of equal protection issues have I was deeply impressed with the At Nevertheless, basic changes in public senti often trespassed upon responsibilities our torney General's analysis and with his ment can stlll portend changing judicial constitutional system entrusted to legisla recommendations for corrective action. philosophy. Various doubts about past con tures. Through their determination of so Much work must be done to restore the clusions have already been expressed in called "fundamental rights" and "suspect separation of powers intended by the Supreme Court opinions, concurrences, and classifications," courts have sometimes suc framers of the Constitution and to re dissents- which makes the next few years ceeded in weighting the balance against inviting ones to urge modifications upon proper legislative action. turn the Federal judiciary to its role of that Court and other federal courts. deciding cases and controversy rather In the 1942 case of Skinner v. Oklahoma, We intend to do exactly that. SoUcitor the Supreme Court first emphasized the con than formulating national policy. General Rex Lee is already working with -:>ur cept of fundamental rights that invites I ask unanimous consent that the At Assistant Attorneys General to identify courts to undertake a stricter scrutiny of the torney General's speech be printed in its those key areas in which the courts might inherently legislative task of line-drawing. entirety in the CONGRESSIONAL RECORD be convinced to desist from actual policy In the nearly forty years since then, the at the conclusion of these remarks. making. In somP areas, what we consider number of rights labeled "fundamental" by There being no objection, the speech errors of the past might be corrected. In the courts has multiplied. They now include other areas, past trends might at least be the first amendment rights and the right to was ordered to be printed in the REc halted and new approaches substituted. To ORD, as follows: vote in most elections-rights mentioned in day I want to outline some of those areas the Constitution. REMARKS OF THE HONORABLE WILLIAM FRENCH upon which we are focusing. In addition, however, they include rights SMITH It is clear that between Allgeyer v. Louisi that--though deemed fundamenta'l-were It is a special pleasure for me to be here ana in 1897 and Nebbia v. New York in 1934 held to be only implied by the Constitution. this morning and to open thls first gather the Supreme Court engaged in-and fos The latter group--which has become a real ing of the men and women who direct the ter.ed-judicial policy-making under the base for expanding federal court activity Reagan Administration's legal machinery. guise of substantive due process. During this includes the right to marry, the right to pro Most of us are here because of an election period, the Court weighted the balance in create, the right of interstate travel, and the that occurred last November, and I want to favor of individual interests against the de right of sexual privacy that, among other use this occasion to outline what that elec cisions of state and federal legislatures. things, may have spawned a right-with cer tion means to us as the Government's law Using the due process clauses, unelected tain 11m1tat1ons--to ha.ve a.n abortion. yers. Simply put, consistent with the Con judges substituted their own policy prefer We do not disagree with the results tn all stitution and the laws of the United States, ences for the determination of the public's of these cases. We do, however, believe that the Department of Justice intends to play elected representatives. the application of these principles has led an a-ctive role in effecting the p.rlnciples upon In recent decades, at the behest of private to some constitutionally dubious and unwise which Ronald Reagan campaigned. litigants and even the Executive Branch it intrusions upon the legislative domain. The Already, there have been many significant self, federal courts have engaged in a simi very arbitrariness with which some rights changes. We have proposed a comprehensive lar kind of judicial policy-making. In the have been discerned and preferred, whtle crime package of more than 150 administra future, the Justice Department wUl focus others have not, reveals a process of subjec tive and legislative initiatives that would upon the doctrines that have led to the tive judicial policy-making as opposed to help to redress the imbalance between the courts' activism. We will attempt to reverse reasoned legal interpretation. forces of law and the forces of lawlessness. this unhealthy flow of power from state and At the very 'least, this multipllcation of We have proposed a new approaoh to iinmJ federal lepislatures to federal courts-and implied constitutional rights-and the un gration and refugee policy designed to re the concomitant flow of power from state bounded strict scrutiny they produce-has assert control over our own borders. We have and local governments to the federal level. gone far enough. We will resist expansion. brought the Government's antitrust policies Three areas of judicial policy-making are And, in some cases, we will seek to modify ·back to the real economic world by focusing of particular concern. First, the erosion of the use of these categories as a. touchstone 26962 CONGRESSIONAL RECORD-SENATE November 6, 1981 that almost inevitably results in the invali to the constitutional principle of separation RECESS UNTIL MONDAY, dation of legislative determinations. We w111 of powers. The Constitution confides certain NOVEMBER 9, 1981 seek to modify especially the application of a powers in the Legislative Branch and not in strick scrutiny to issues whose very nature the Judicial Branch. In a simllar fashion, the The PRESIDING OFFICER. Pursuant requires the resources of a legislature to re Constitution delineates the proper domain to the_ previous order, the Senate will solve. of the Executive and Legislative function. stand m recess until Monday at 12 noon. We shall also contest any e:r.pansion or the The Constitution directs the President to en sure the faithful execution of the laws, Thereupon, at 12:42 p.m., the Senate list of suspect classifications, which, once recessed until Monday, November 9 estab'ished by a court, almost inevitably re which forms the basis of the Attorney Gen sult in the overturning of legislative judg eral's litigating authority for the government 1981, at 12 meridian. ' ments. Thus far, the Supreme Court has em as a whole. That constitutional command ployed a strict-scrutiny test when legislative also requires the Executive branch to defend classifications turn upon race, national ori measures duly enacted by the congress CONFIRMATIONS gin, or. in many instances, alienage. In ad even those with which the Admlnlstratton dition, when classifications are based upon does not agree. Executive nominations confirmed by sex or legitimacy, the Court has on occasion Statutes with which we disagree are nev the Senate November 6, 1981: conceived and applied a middle test some ertheless the law of the land. As such, they DEPARTMENT OF STATE where between the special strict-scrutiny must be defended against attack in the Geoffrey Swaebe, of California, to be the test and the normal rational-basis test. courts. They must also be fully enforced Representative of the United States of Amer Already, some limitations have been forged by the Executive Branch when their validity ica to the European Office of the United Na in the Supreme Court to temper these anal and meaning are clear. Some have suggested tions, with the rank of Ambassador. yses of suspect and quasi-suspect classifica that this Administration Intends to do less. Jean Broward Shevlin Gerard, of New York. tions-for example, in the case of alienage. Others have suggested that this Administra for the rank of Ambassador during the ten The Department of Justice win encourage tion should do less. ure of her service as the U.S. Permanent further refinement in these areas-in partic In fact, the Department of Justice intends Representative to the United Nations Educa ular, by resisting increase in the number of to do exactly what the Constitution re tional, Scientific, and Cultural Organization. suspect or quasi-suspect classifications and quires-to enforce the laws duly and consti Evan Griffith Galbraith, of Connecticut, to by tempering the strictness or the analysis tutionally enacted by the Congress. It we be Ambassador Extraordinary and Plenipo- · applied to classifications based upon allen were to do less, we would ourselves be guilty tentiary of the United States of America to age. Throughout, as with the so-called fun of the same kind of transgressions that I have France. damental rights, we shall bt> guided by the pledged we would combat on the part or Robert L. Barry, of New Hampshire, a ca principle that legis1atures, rather than the Judiciary. Under the Constitution, the reer Member of the Senior Foreign Service. courts, are better suited both constitution Executive cannot unilaterally alter the clear class of Minister-Counselor, to be Ambassa ally and practically to make certain kinds enactments of Congress any more than the dor Extraordinary and Plenipotentiary of the of complex policy determinations. we shall, courts can. When it disagrees with a law, the United States of America to Bulgaria. however, remain vigilant to the Civil war Executive Branch can urge and suppor:t changes by the Congress. In the case of laws BOARD FOR INTERNATIONAL BROADCASTING Amendments' explicit concern over classifi Mark Goode, of California, to be a Member cations based on race. that are clearly and indefensibly unconsti tutional, the Executive can refuse to enforce of the Board for International Broadcasting The extent to which the Federal courts them and urge invalidation by the Courts. for a term expiring April 28, 1983. have inappropriately entered legislative ter When reasonable defenses are available we rain can be seen most clearly-and felt-in U.S. INTERNATIONAL DEVELOPMENT will defend a. statute that does not int;ude COOPERATION AGENCY their use of mandatory injunctions and at upon the powers or the Executive Branch. tempts to fashion equitable remedies for That is our responsib111ty under the Consti L. Ebersole Gaines, of Idaho, to be Execu perceived violations. Throughout history, the tive Vice President of the OVerseas Private tution irrespective of our views on substan Investment Corporation. ea.uitable powers of courts have normally tive policy. In the case or ambiguous laws the reached only those situations a court can Executive can in good faith urge and p~sue The above nominations were approved effectively remedy. Implicit within that his those interpretations that seem most con subject to the nominees' commitment tore torical limitation is the recognition that sistent with the intentions of the Congress, spond to requests to appear and testify be some kinds or remedial efforts require re fore any duly constituted committee of the the policies of the Administration, and the Senate. sources and expertise beyond those or a Fed other laws or the land. The Executive can do eral court-even one aided by special mas all of these things, but it can constitution IN THE AIR FORCE ters. ally do no more. No one should doubt that The following-named officers for permanent Nevertheless, Federal courts have attempt this Administration's adherence to the Con promotion in the U.S. Air Force, in accordance ed to restructure entire school systems in stitutional principle of separation of powers with section 601, title VI, Transition Provi desegregation cases-and to maintain con wlll exact from us the same degree of obe sions, Defense Officer Personnel Management tinuing review over baste administrative de dience and moderation that we w111 urge Act of 1980, with dates of ranlt to be deter cisions. They have asserted simllar control upon the courts. mined by the Secretary of the Air Force. over entire prison systems and public hous There is an old story about James Russell LINE OF THE AIR FORCE ing projects. They have restructured the Lowell when he was the American Ambassa employment criteria. to be used by American dor to the Court of St. James during the late To be major general business and government-even to the ex nineteenth century. The French Ambassador James A. Abra.hamsonMartin C. Fulcher tent of mandating numerical results based of the time-who was himself a historian as William P. Acker Lawrence D. Garrison upon race or gender. No area seems Immune well as a diplomat-approached Lowell with a James H. Ahmann Harry A. Goodall from judicial adminstration. At least one question: Spence M. Armstrong Irwin P. Graham Federal judge had even attempted to ad "Mr. Ambassador, how long will the Amer James I. Baginski David L. Gray minister a local sewer system. ican republic endure?" Walter H. Baxter III Jack I. Gregory In the area of equitable remedies, it seems The American Ambassador replied: Stanley C. Beck Fred A. Haeffner clear that Federal courts ha.ve gone far be "As long as the ideals of its leaders reflect Ernest A. Bedke Titus c. Hall ~· ond their abllities, In so doing, they have the Ideals or the Nation's Founding Fathers." Donald W. Bennett Patrick J. Halloran forced major reallocations of governmental This Administration Intends to use every RichardT. Boverie Guy L. Hecker, Jr. resources-often with no concern for budget resource at its disposal to ensure that this Melvin G. Bowling Gerald K. Hendricks ary limits and the dislocations that inevi government reflects the ideals of the Found Theodore D. William w. Hoover tably result from the limited judicial per ing Fathers. Those principles have long en Broadwater Robert E. Kelley spective. abled our Nation both to endure and to pros Blll V. Brown Doyle E. Larson In many of these cases, the Department per. In the furtherance of those principles, James L. Brown James E. Light, Jr. wm also seek to ensure better responses to however, we wm not ourselves seek short James R. Brown George c. Lynch the problems at issue by the more appropri term successes at the expense of basic prin Norma E. Brown William G. MacLaren, ate levels and branches of government. we ciples. We wlll demand of ourselves that John T. Buck J::. have already begun that process in the case same adherence to sound constitutional Louis C. Buckman John B. Marks, Jr. of busing and quotas, both of which have Kenneth D. Burns Leo Marquez largely falled as judicial remedies. principles that we intend to demand of the other branches of government. Richard A. Burpee James H. Marshall Thus far, I have discussed some of those William J. Campbell Wllliam E. Masterson things that the Department of Justice will Carl H. Cathey, Jr. W1lliam B. Maxson do to further the goals of this Administra John T. Chain, Jr. Robert F. McCarthy tion. Through legislation and litigation, we CONCLUSION OF MORNING Melvin F. Chubb, Jr. Forrest F . McCartney will attempt to effect the goals I have out BUSINESS Nell L. Eddins Keith D. McCartney lined. There are, however, some things that George A. Edwards, Jr.Russell E. Mohney we cannot-and will not-do. The PRESIDING OFFICER. Is there Jay T. Edwards III Harry A. Morris Throughout my remarks today, I have em further morning business? If not, morn James C. Enney Cornelius Nugteren phasized the importance of judicial restraint ing business is closed. Donald L. Evans Leighton R. Palmerton Nouember 6, 1981 CONGRESSIONAL RECORD-SENATE 26963
Marvin C. Patton Richard K. Saxer Richard L. Meyer Henry J. Sechler Air Force nominations beginning Amrlt S. John R. Paulk Walter C. Schrupp George L. Monahan, John A. Shaud Abing, to be ñrst lieutenant, and ending Don H. Payne Richard V. Secord JÝ. William M . Shaw , Jr . Wayne E. Ellis. to be captain, which nom- Kenneth L. Peek, Jr. Stuart H. She:man. Jr. Joseph D. Moore Jack W. Sheppard inations were received by the Senate and Milton R. Peterson Carl R. Smith Joe P. Morgan William L. Shields, Jr appeared ìn the CONGRESSIONAL RECORD on James C. Pfautz Perry M. Smith Michael A. Nelson Ellie G. Shuler, Jr. October 22, 1981. John L. Pickitt James P. Smothermon David L. Nichols Charles P. Skipton Air Force nominations beginning Densel John L. Piotrowskl Casper T. Spangrud Robert C. Oaks Monroe T. Smith K. Acheson, to be co:onel, and ending Hubert Winston D. Powers Robert C. Taylor Peter W. Odgers Robert D. Springer E. Wrenn, to be colonel, which nominations John T. Randerson William R. Usher William E. Overacker Richard E. Steere were received by the Senate and appeared in Mark C. Reynolds Mele Vojvodich, Jr. Maurice C. Padden John T. Stihl the CONGRESSIONAL RECORD on October 27, Graham W. Rider Jack L. Watkins Robert B. Patterson John H. Storrie 1981. Aìbert G. Rogers Wayne E. Whitlatch David L. Patton Donald J. Stukel Alr Force nominations beginning Ray- Davis C. Rohr Charles E. Woods Randall D. Peat Thomas S. Swalm mond E. Abel, Jr., to be lieutenant coloneI, Robert D. Russ Attllto Pedroli William E. Thurman and ending David G. Wood, to be lieutenant s N. Tibbetts colonel, whic Chc1jjlain Leonard H. Perroot Lary h nominations were received Robert O. Petty Marion F. Tidwell by the Senate and appeared in the CO Richard Carr NGRES- Jimmy C. Pettyjohn Thomas G. Tobin SIONAL RECORD on October 27, 1981. DENT/U. CORPS Robert B. Plowden, Jr.Harold W. Todd Air Force nominations beginning Francis Tolbert Stanley C. Kolodny Eugene M. Poe, Jr. William T. W. Ahearn, to be lieutenant colonel, and Walter H. Poore Regis F. A. Urschler ending James C. Rock, to be lieutenant MEDIC A] L CORPS George B. Powers. Jr. Wilma L. Vaught colonel, which nominations were received by Max B. Bralliar John W. Ord Gerald L. Prather Russell L. Violett the Senate and appeared in the CONGRES- Murphy A. Cheßney Howard R. Unger Raymond C. Preston, Donald A. Vogt SIONAL RECORD on October 27, 1981. Jr. Rudolph F . Wacker Air Force nominations beginnlng Michael To be briga,dier general philip S. Prince Paul D. Wagoner J. Mansfield, to be lieutenant colonel, and Richard F. Abel Richard H. Dunwoody Richard W. Pryor Brlen D. Ward ending Mark H. Fox, to be major, which Donald 0. Aldridge Archer L. Durham Allen K. Rachel William B. Webb nominations were received by the Senate Michael H. Alexander Pintard M. Dyer III Bernard P. Randolph Bernard L. Weiss and appeared in the CONGRESSIONAL RECORv Melvin G. Alklre Duane H. Erickson Donald L. Rans Browning C. Wharton on October 27, 1981. Clarence R. Autery Alonzo L. Ferguson Thomas C. Richards Jr. Alr Force nominations beginning John C. Leon W. Babcock, Jr. David W. Forgan Craven C. Rogers, Jr. Gordon E. Williams Aarnl, Jr., to be lieutenant colonel, and end- Jerome R. Barnes, Jr. Daniel B. Geran Robert A. Rosenberg Harold J. M. Williams ing Hubert E. Wrenn, to be lieutenant colo- Robert D. Beckel Edward N. Giddings Thomas W. Sawyer Clinton H. Wínne, Jr. nel, which nominations were received by the Carl N. Beer Donald W. Goodman Gerald C. Schwankl Clifton D. Wright, Jr. Senate and appeared in the CONGRESSIONAL Kenneth H. Bell William A. Gorton Chaplain RrcoRD on October 27, 1981. Charles E. Bishop James I. Granger John A. Collins Alr Force nominations beginning Wiley F. James T. Boddie, Jr. John Ë. Griffith Judge Advocates Adams, to be major, and ending Adrian A. William C. Bowden Charles R. Hamm Gordon A. Ginsburg Williamson, to be major, which nominations Thomas C. Brandt Alfred G. Hansen R. Lowry were received by the Senate and appeared in William J. Breckner, Elbert E. Harbour Joseph den the CONGRESSIONAL RECORD On October 27. Jr. Winñeld S. Harpe C. C. Teagar L CORPS 1981. Elmer T. Brooks Monroo W. Hatch, Jr MEDICA Air Force nomination Donald D. Brown Edward J. Heinz Frederic F. Doppelt s beglnnìng Nicholas Abate, to be Stanford E. Brown Thomas J. Hickey William H. Greendyke major, and ending Dan 0. Yoshiì, to America P. Bruno Jesse S. Hocker Monte B. Miller be major, which nominations were received John R. Budner Paul H. Hodges Gerald W. Parker by the Senate and appeared in the CONGRESSIONAL Robert E. Buhrow Harley A. Hughes Bealer T. Rogers, Jr. Ræ:coRD on October 27, 1981. Lyman E. Buzard John P. Hyde Kermit Q. Vandenbos Air Force nominations beginnlng Roy L. James T. Callaghan Richard A. Ingram MEDICAL SERVICE CORPS Aanerud, to be major, and ending Grover E. Duncan W. Campbell Delbert H. Jacobs Donald B. Wagner Wroe, to be major, which nominations were received by the Senate and appeared tn Michael P. C. Carns Ralph H. Jacobson NURSE:CORPS the Aloysius G. Casey Hansford T. Johnson CONGRESSIONAL RECORD on October 27, 1981, Sarah P. Wells Duane H. Cassidy James G. Jones Air Force nominations beglnning Ral- IN TH!E ARMY Robert D. Caudry Albert J. Kaehn. Jr. lin J. Aars, to be colonel, and ending Fred J. William M. Charles, Robert C. Karns The following-nanled Judge Advocate Witzgall, to be colonel, which nominations Jr. Melbourne Kimsey General Corps Ofñcer 1'or appolntment in the were received by the Senate and appeared in Jo:eph H. Connolly William L. Kirk Regular Army of the United States, to the the CONGRESSIONAL RECORD On October 27, William M. Donald L. Lamberson grade indicated under the provisions of title 1981. Constantine Gerald D. Larson 10, United States Codie, section 624 and sec- IN THE NAVY tion 601 (a), Defense