13164 EXTENSIONS OF REMARKS June 10, 1986 EXTENSIONS OF REMARKS FAST FOOD LABELING the Atlanta Constitution editorial be Diabetes is a disease in which the body reprinted in the RECORD. does not produce or properly use insulin, a The material follows: hormone used to convert sugar, starches, HON. JOHN H. CHAFEE and other foods to energy. A strict regimen OF RHODE ISLAND [From the Atlanta Constitution] of proper diet and exercise is critical to the FEDS SHOULD CHEW ON FAST-FOOD STANDARDS management of diabetes and its complica­ IN THE SENATE OF THE UNITED STATES tions by people who have "Type I" insulin­ If you are what you eat, then Lord knows Tuesday, June 10, 1986 dependent diabetes and "Type II" non-insu­ what you are if, like millions of Americans, lin dependent diabetes. Therefore, persons • Mr. CHAFEE. Mr. President, last you make up any notable part of your diet with diabetes who dine in fast food restau­ month I introduced legislation

e This "bullet" symbol identifies statements or insertions which ace not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather· than spoken, by a Member of the House on the floor. June 10, 1986 EXTENSIONS OF REMARKS 13165

THE FUTURE GARDEN OF TRADE: EXQUISITE OR If some among you found offense in it, But we have learned that it is the little NEGLECTED? none was intended and I am regretful. But foundation rocks that uphold the theme of To the honored Chairman of the Dai­ you must understand that it rang true an exquisite garden, not the big, visible Nippon delegation; to the other assembled among businessmen in America, in Canada, ones. daimyo of Japanese industry: You have the in Australia, and among the businessmen of So in America there is receptivity to the heartfelt thanks of all for the generous hos­ many nations who face similar situations, Maekawa theme. But there will be no sur­ pitality and the meticulous courtesy you My inspiration then was true wisdom prise if it comes to naught, or to grudging accord us. Nevertheless I speak with a sense handed down in "A Book of Five Rings." Be­ little because this is what experience is of sadness, of regret and, almost, of resigna­ cause an important friendship was at stake, teaching. tion. I spoke frankly the mind of America; and I In America there is hope for the goals out­ It is unseemly so soon after what the pleaded with you to use the skills Musashi lined in the Triumph of Tokyo. But there President called the Triumph of Tokyo-the recommended: The two-fold gaze of sight will be no surprise if it comes to nothing but economic summit at which Japan won much and perception, and the understanding of talking about the need to really talk-some­ honor-to draw attention to the Failure of background timing; not to prevail, but to day. San Francisco: Our unsuccessful joint at­ understand. And if nothing happens Japan must not tempt to increase Japan's purchases of U.S. And I suggested that if you would see be surprised at the other things that coal according to the old agreement of your beyond America's distractions to our real happen in consequence, and fairly . soon. Prime Minister and our President. soul you should read the Declaration of In­ There will be renewed determination, and But just as a carefully chosen, carefully dependence. It is an earlier time's indict­ demands for action and-most likely-action placed rock in one of your exquisite gar­ ment and bill of particulars on mercantilist stronger than anything now pending in dens, the greater rests on the lesser; and on practices of another island trading nation more than 500 trade bills in Washington. the bearing capacity of the small does the that thought to use us only as a source of Knowing our culture as well as you know viewer's perception of the whole rest. raw materials and minor items; but also to yours, I sought to help Japan understand I want to be very clear on this so no one use us as a dumping ground for every kind the need to support the idea of mutual ben­ will assign unintended meaning to my of finished goods to the detriment of our de­ efit in trade; why this mood would grow. words. The greater is the circle of free and velopment. I sought to reawaken the sense of mutual trading nations; the lesser is each of the na­ For the use of these insights and a real benefit we seemed to have established at tions that benefit from this order: Japan, understanding on both sides appeared vital Norfolk, when world politics and unrest America, and all the others; no more, no to our particular relationship; to the broad­ made you desperate for American coal. All less. er relationship of the world's two foremost the world was desperate then. Ships of So speak I must. trading nations; and to the even wide circle almost every nation waited at our ports. The world has turned more than 730 of the world trading order. Then Japan said: We have been your good times since Mr. Nakasone and Mr. Reagan I urged you to examine the historic customer; our metallurgical purchases for reached agreement that Japan would buy demand for a square deal in American cul­ years supported your industry (and we did ture, and the equally strong view of trade as not answer that our steel market supported more U.S. coal and told us to handle the de­ a thing that should carry mutual benefit. I tails. It has turned these times since we your export-oriented steel industry>; and we began talking of how to do this. The sun did so in the hope that frank talk could help want your coal because we must have a di­ has risen and set all these times, and many make our mutual destiny one of harmony versified, stable and dependable supply to and not of discord. survive. times has the moon swollen to and fallen And there was reason to hope 730 sunrises from fullness. ago: The Nakasone-Reagan accords on coal And America responded. We did business As the Japanese proverb says, the full were bright; and the Government of Japan as businessmen, but there was a sense of a moon is doomed to wane. And all things was once again talking of liberalizing import special relationship. The American coal in­ change. policies, practices and customs. dustry took every extra step that could be During this time children whose parents In the interim additional market-opening taken to ease Japan's burdens. The cost was had not even been introduced when we last moves were announced by the Government considerable. met have been born, have taken their first of Japan; we had the market-oriented, And in one year these preferences gave steps and have said their first words. The sector-specific talks; and we had endless Japan nearly nine times more steam coal toddlers of that day have entered school. visits with one another to talk about talk­ than the year before, despite a clamoring The trade deficit of the United States with ing. world. Yet the results of the Nakasone­ Japan has risen from $21 billion to $49 bil­ But the· actions did not support the Reagan accord and the STC say that if lion. And coal purchases have yet to break themes. Many now are beginning to say America relied only on Japan we were the horizon. America is the only market open to the wrong to expand capacity; wrong to go to Since we met in Norfolk in 1980, when you goods of all the world, including those political war with the railroads on rates; were desperate to have American coal, the Japan turns away whether by policy, prac­ wrong to improve port loading facilities. world has turned more than 2,000 times. tice or custom. And coal imports have set By the way, we defeated the export rail Mere schoolboys have become college gradu­ faster than the sun after it touches the ho­ rate exemption in court, And when the rail­ ates and novice businessmen. The trade def­ rizon; have become as weak and thin as a · roads recently attempted to recreate it, we icit of the United States with Japan has new moon. let a reaction that was such as to cause breathtaking ascended from $12 billion to The beneficiaries must support the order, them to withdraw it. $49 billion. And coal purchases have de­ and many watch the specifics and the back­ But movement toward implementing the scended from their zenith into the sea. ground. The American people do. So do the accords has been almost without progress. Mitsure ba kakuru: All things change, and politicians they elect to make their policies. Accordingly: We have withdrawn from the the watchful eye begins to see patience They are still watching. And the mood I Standing Technical Committee; we have in­ shading into foolish hope. warned of two years ago is deeper, despite formed the President there will be no result When we met in San Francisco, I tried to the Triumph of Tokyo. Mood is shading from the once-bright accords absent the ap­ convey to you a sense of urgency about our into judgment. plication of policy. relationship as producers and users; about Everyone gives Japan great credit for loos­ And these results say more to others who the relationship of our nations as the fore­ ening its official hold on the yen to allow it watch the whole of the garden that could be most trading nations of the world; and to rise to its proper place among the world's created by the circle of free and trading na­ about the world trading order that should currencies and the dollar. This credit is de­ tions. They suggest Japan has taken a well­ sustain Japan and all others in it: For each served. earned and proper place in this circle of na­ is to the other and to the whole as rocks are There is high applause for the findings of tions; but that the heirs of the knowing to the garden. the Maekawa Commission. It identified the leaders who started this rise do not accord I said all these things are in peril. And troublesome things that bring pressure: America, or others, a proper place. they are moreso today, despite the Triumph Economic growth only through export; re­ As a Japanese journalist recently wrote of Tokyo and its new accords on trade ten­ sistance to competitive imports; and other for the Washington Post, Japan's concept of sions; and because of many situations such practices. We particularly find interest in this circle does not seem to extend beyond as the Failure of San Francisco. the specific recommendation to increase Japan. I assure you the other trading na­ Wanting deeply to engage your attention coal imports. tions expect it to; for, although you have in San Francisco, I invoked your national And we welcome the Tokyo Summit's rec­ worked with will, Japan has benefited great­ folk symbol and discussed its similarities ognition of and emphasis on trade tensions, ly from all nations in this circle of free and with ours. I was privileged to address you on which are felt among your nonexporting in­ trading nations. The results also suggest I that occasion in a paper entitled "The Su­ dustries as well as across America and may have spoken too frankly for your cus­ murai and the Cowboy." throughout the order. toins. 13166 EXTENSIONS OF REMARKS June 10, 1986 There are some American coal producers In San Francisco I sought to demonstrate Even the classically-oriented Wall Street who feel our efforts have been treated the idea of mutual benefit on which rests Journal is now giving space to opinion arti­ almost as representations by those who the circle of free and trading nations. cles such as the recent one headlined: Japan scheme to corner you with obligations; I asked you to consider the millions of and Adversarial Trade. almost as those by mere money counters tons of steel you send to the United States. The opinion-makers are ·well beyond dis­ and worse. It is about 15 percent of what Japan exports cussions of clever management techniques, I do not feel this way. I still have hope. So even under current conditions. of the work ethic, of quality circles or of do the American metallurgical and steam Although restraints exist, no other large cultural differences. coal producers and traders who are here. market is so open. You have an entitlement Now they notice the structural adjust­ But you must ask yourselves: Where are the under these restraints to 5.8 percent of the ments made up and down the American other faces that made the other conferences market for finished goods. No single nation economy in the name of world trade, adjust­ such large affairs? Where are the bulk of has anything to match it; it is greater than ments to accommodate not just Japanese the steam coal producers? Why are they not the EC share and no single nation comes goods but the goods Japan turns away from here? close; it doubles most shares. Your industry the Tiger Cubs and Baby Dragons of Asia; They are at home tending to business. For was considered. and for the goods of Europe as well. a number, more than geographic distance is I also asked you to consider the 2.3 million They note that America takes 50 percent involved in their absence. automobiles you sell in the U.S. Despite re­ of the exports of the Third World, which Some among the missing have watched laxing voluntary restraints, no other nation compete with American workers; and that your increasing imports from Russia and has such a market, no other nation allows Japan takes only 8 percent; and that com­ China. Neither nation is necessarily friendly such access. The EC will not take half the petitiveness is not necessarily a standard. nor lacking in hard political motives nor cars you sell in America. Meantime they report on some partners' hesitant in unexpectedly using trade as a And I said there was a need to demon­ protests about the need to protect this or political weapon. And neither has any long­ strate an understanding of mutual benefit; that segment of their economies from struc­ term interest in Japan's prosperity in the for without such a showing all of these tural readjustment. They find and report on circle of free and trading nations, or in the things could be peril. things such as: The Japanese buttonmaker circle. One is outside the circle entirely; the Curiously, Japan's statistics say the pur­ who can sell at home at 40 percent above other half in, half out. Those who watch chase of more U.S. met coal during this time world prices; and the Japanese sawyer who also see the statistics on the Australian and would have added no more than one-twenti­ is protected and says every nation should Canadian trade. eth of one-one hundredth of a dollar to a protect its workers. And they make tentative conclusions. ton of the high-priced finished steel prod­ And the people learn that when your Min­ Some are concluding-as an Australian ucts you sell in the United States. This is ister of International Trade and Industry reader of the San Francisco paper told me one-half mill in dollar terms; it also is a was in the Diet he said, I see nothing in he has concluded-that there are only six fraction of a yen even at yesterday's ex­ America that Japan would want. Then they considerations in the Japan coal trade: change rates. ask questions of themselves. When coal is scarce, diversification, reli­ But this did not happen. Now the other The examination is never-ending, and all ability of supply and long-term interests are concerns that motivated this bluntness are things change. It is but half steps from re­ the most important talking points while coming to pass, despite the Triumph of spectability to consensus to law. If there is minor differences in price are dismissed as Tokyo. no willingness to modify what exists, the im­ secondary; and, The Tokyo Summit of industrialized na­ pression grows that a reordering will be When capacity is built up, the three re­ tions did give an elevated place to settle­ done some way. maining important items are price, price ment of trade tensions, and this has stabi­ Many are close to acting against what and price; but, lized the pressure, temporarily. they see as the thing that spurred the Dec­ Never, never, never are they important at The Maekawa report does demonstrate laration: A long train of abuses. the same time or in a balanced way. awareness, and this has temporarily arrest­ I have with me a copy of the Rahall Reso­ Some among the missing producers have ed the pressure; but no lowered it. lution from the House of Representatives. If decided they will not sell below the cost of But if either or both of these only result you have only read of it and not seen it, I production. By the way, this would be in talk about talking, the tensions will not offer it to you now. It says the policy of the dumping in a truly open market, and sub­ be reduced in America; they will be in­ United States should be to link Japan's ject to government remedy. creased, and pressure will be redoubled with access to the American steel market to These producers feel America has lots of pressure. Japan's purchases of American coal-ton­ coal. They have time and a growing domes­ At this point most Americans would be out, ton-in. tic market. It is an alternative to selling ready to take counsel from the folk wisdom Congressman Nick Rahall represents coal below cost. You also must ask yourselves: set out in the saying: Fool me twice, shame miners, productive coal miners. American Would the Australians and Canadians like on me. Many are close to this today, and not mining productivity just increased another alternative markets, just as you like alterna­ only in America. 5.7 percent in 1984. As a result the price of tive suppliers? Does over-capacity eventual­ Unusual things are being reported now in coal fell-again. Mr. Rahall's region was one ly cure itself? Might not Australia and the periodicals and journals that influence of those that gave birth to the revolution­ Canada balance the considerations as other and mold the American consensus, which ary spirit, which has not passed away. Asian nations develop. Is the world ever exists no matter how disorderly it looks Meantime the House of Representatives is really stable? Where are Japan's long-term from the outside. ready to act on a bill to allow swifter, harsh­ interests, and markets? No longer is concern about the trade defi­ er dealing with goods found to be unfairly For some American producers it has come cit disreputable. No longer are proposals to traded. It even deals with previously un­ to this: This time is a fork in the road from correct it soon seen as mere backward pro­ touched areas such as targeted goods. It also Norfolk; and absent the early substitution tectionism. No longer do only politicians contemplates balancing Japanese steel and of action for talk, they are ready to take the talk about it. U.S. coal. alternative. Our observers, pundits and thinkers are If you have read of Senator Danforth's re­ They will be friendly when you need them looking and seeing other things. They see marks here-Japan is a great nation and again. But they will be friendly as to strang­ that the American economy pulled the should act as one-you know the Senate is ers with whom no bond exists. They will sell world economy-including Japan's-through no less interested. There is specific interest coal when the full moon wanes, and at a fair the recent recession by resolutely remaining in coal. Congressmen and many Senators price as always. open. They say: It was painful because who have to seek re-election this fall are But this will be a commercial relationship many goods were unfairly traded; the cost making correction by law a major part of as between money changers. Then it will be was high. And it might not even have been their campaigns. very, very, very difficult to again rally to fully intended. But it is result that counts. So, yes the rise of the yen eased the pres­ consensus in this industry to make special Now one reads in Forbes Magazine that: sure; and, exertions for Japan, and to create prefer­ The U.S. served the world well by allowing Yes, the Maekawa Commission and the ences. Then it will be three-times difficult itself to become a dumping ground for the Triumph of Tokyo can hold back the pres­ to rally a consensus to take some of the po­ world's goods. But ... the pain ... is begin­ sure; and, litical stands we have taken on proposed ning to exceed the pleasure. Forbes said Yes, President Reagan wants the world laws. this, not Carl Bagge. trading order to be self-correcting. Those of this mind would be inclined to Or in the Washington Post that: It was an But he has only two years in office, and simply stand aside, and to let the $14 mil­ admirable rescue but it has gone on too long even he has said he will not allow the lion Japan lobby in Washington handle ... it is time for Japan and Germany to United States to be taken advantage of. As things as best they could. take up the burden. an earlier President Jefferson said: No more June 10, 1986 EXTENSIONS OF REMARKS 13167 good must be attempted than the nation Again, to the honored chairman of the do need is to save taxpayers the quarter of a can bear. And the next President may Dai-Nippon delegation, to the assembled billion dollars scheduled for the Nerve Gas choose to deal with it differently-much dif­ daimyo of Japanese industry: I have spoken Program now and billions more in years to ferently-if there is no change. Left unbal­ in sadness, in regret and, almost, in resigna­ anced, uncorrected, the trading order could tion. Our goal was a strictly commercial con­ come. be the issue that elects the next President. ference, and I have outlined the things At this point I am inserting into the RECORD If Japan's politics is difficult in regard to shaping tomorrow's commerce as they exist a chronological fact sheet on the production opening markets to more competitive im­ today. of binary nerve gas, giving the history of the ports, Japan must finally understand that If my words are unseemly to some, they Pentagon's claims about nerve gas and the ours is equally difficult in regard to closed also are accurate in regard to tentative judg­ actual production record of the Bigeye bomb. markets when our market is open, or when ments being made in America. And among it gives consideration to a partner. other free and trading nations. I urge you to Also I am placing in the RECORD Chairman Japan must understand that each round think deeply about them. Thank you for FASCELL'S statement on the GAO report, of talking about talking only doubles the your magnificant hospitality and meticulous which provides details of the GAO's findings pressure. Only tangible change can end it. courtesy. The world is watching. The world on the inadequacies of the Bigeye nerve gas Only sturdy, firmly set small rocks can sus­ is waiting. Let's roll up our sleeves and make bomb: tain the great rocks that make the garden an exquisite garden that shows the world what it should be. how it should be done. FACT SHEET Coal trade is such support for the present, 1982: The Pentagon asked for the first and for the Maekawa Commission, just as procurement funds for the Bigeye chemical the Commission's changes can be for the SHOULD YOU BELIEVE THE PEN­ weapons bomb: trading order. I hope this report causes your TAGON'S CLAIMS ON CHEMI­ The Pentagon said it was ready to begin awesome consensus· system to work in its CAL WEAPONS? LOOK AT THE work on the Bigeye bomb. During the House favor, because ours is hard at work. 5-YEAR HISTORY OF THEIR floor debate on July 22, 1982, several House I now point to two specific Maekawa rec­ FALSE INFORMATION ON THE members rose to defend the new weapons as ommendations: First, to concentrate on PROGRAM adequately tested. Said Rep. Jim Courter, needed public works here to cause growth "There have been a lot of statements made from within, and to take up goods from during the past few hours that binary weap­ trading nations just as you send them out; HON. BOB EDGAR ons have not been tested. Nothing is further and second, to reduce Japan's coal produc­ OF PENNSYLVANIA from the truth. They simply have." Said tion by half. IN THE HOUSE OF REPRESENTATIVES Rep. Sam Stratton, "[Binary weapons] Public works mean steel and cement. Steel would not explode even if they were driven and cement mean coal and electricity gener­ Tuesday, June 10, 1986 up and down the ski slopes of Colorado." ated from coal. Japan's coal sells for $20-to Mr. EDGAR. Mr. Speaker, our colleague But in fact, Pentagon tests in 1982 were $25 a ton more than U.S. coal, which you DANTE FASCELL, the distinguished chairman of beginning to show problems with the get CIF Japan at the approximate price CIF the Foreign Affairs Committee, has been a Bigeye: and Canadian coal. According to former Arkansas Rep. Ed Be­ So a representative share of this new leader in the fight against the production of new nerve gas weapons. Today he is releas­ thune during the 1983 House floor debate demand of at least 9 million tons would be a on chemical weapons, the Pentagon first support of and a signal about all the change ing a new report on the Bigeye binary nerve discovered the Bigeye bomb had problems promised by the Maekawa Commission and gas bomb that confirms many of our fears in June 1982 and had a serious Bigeye bomb implied by the Triumph of Tokyo. about the danger and unreliability of the pro­ test failure on October 7, 1982. As you deal with the Maekawa recommen­ posed new generation of nerve gas. 1983: The Pentagon renewed its request dations there are signs all the watching na­ Last year, Congress narrowly approved re­ for Bigeye bomb production funds: tions will read. The first is whether you take them up at sumed production of these deadly and redun­ "However, during the [19821 debate the all. The second is whether you take up dant weapons, but only after requiring that Bigeye was critized as being unreliable . . . A about the difficulties of implementation duction could be started on October 1, 1986. decision on the Bigeye should be based on from behind substantially closed markets, Primary among these was a stipulation that the best information available, not on un­ substantiated opinion." [Source: Written re­ and never mind why they are closed. And a production of binary nerve gas could begin third is whether you take them up willingly. sponse by Defense Secretary Casper Wein­ only if performance specifications were met. berger to question from Sen. Sam Nunn, If you take up public works, more coal The General Accounting Office [GAO] report from Russia and China will mean one thing. from hearings before the Senate Armed Serv­ More from Australia and Canada will mean released today by Representative FASCELL in­ ices Committee, February 1, 1983] something else, but something similar. dicates that the Bigeye binary nerve gas bomb Then the Pentagon itself announced in And no coal, or grudging acceptance of is so flawed "the GAO believes the bomb is 1983 that it had discovered problems with minimal amounts, from the U.S. may be not ready for production." the Bigeye bomb: taken widely as verification of tentative After an extensive study, commissioned last "The Pentagon has asked Congress to judgments by those who have made them: year by Representative FASCELL, the GAO defer $43 million it had sought for produc­ tion of the controversial Bigeye binary In coal, in industry, in politics and among concluded that: I opinion-makers and then the public. chemical bomb because it has discovered l In coal those who are withholding judg­ From the data we have reviewed, we do that the bomb could explode on its own and ment would decide it is time to tend to their not believe the Bigeye has met its technical spew deadly nerve gas while being carried own business and do business as usual-at a specifications and should not be undergoing by an American aircraft." distance; first come first served; no prefer­ operational tests until these specifications " 'The problem was discovered late last ences: every man for himself, and the devil are met. year,' Dr. Ted Gold, deputy for chemical take the hindmost. Furthermore, the GAO found that: matters in the office of the assistant to the Overall, little or only grudging improve­ While more developmental testing may be secretary of defense, said yesterday. 'But we ment would put our now-idling consensus able to answer some of the unresolved ques­ believe a solution is in hand.' " [Source: system back in high gear. tions, other questions appear to be intracta­ Washington Post, May 3, 1983, article by Some say Japan will not do these things. I ble and not likely to be solved. Walter Pincus] disagree. I know the will of Japan is awe­ 1984: The Pentagon said that it has solved some to behold and irresistible in its force. Mr. Speaker, for several years I have its problems with the Bigeye bomb that had \ It is only a question of whether your worked with Chairman FASCELL and other been found the previous year: nation will recognize the circle of free and Members of the House to point out that the "The Bigeye program, from a technical trading nations, and the idea of mutual ben­ Nerve Gas Program is an unworkable boon­ standpoint, is in better shape this year. The efit. The rest follows as the sunrise follows doggle. We have adequate existing stockpiles problem demonstrated change just as knowing workmen make gar­ don't need to frustrate progress in negotia­ ... Based on testing to date, we expect that dens exquisite or ordinary by their place­ tions toward a chemical weapons ban. We the Bigeye will perform as required and add ment of the little rocks. simply don't need more nerve gas. What we an essential capability to our chemical de- 13168 EXTENSIONS OF REMARKS June 10, 1986 terrence posture." [Source: Dr. Theordore S. "Congress should not fund weapons sys­ phase despite these documented test fail­ Gold, Deputy Assistant to the Secretary of tems which do not work. The Bigeye bomb ures in the developmental phase: Defense for Chemical matters, testimony has consistently failed its development "Passing the Bigeye into operational test­ before the Senate Armed Services Subcom­ tests, the problems have been left unre­ ing is like letting kids graduate high school mittee on Strategic and Theater Nuclear solved, and the GAO recommends categori­ because of their age despite the fact that Forces, April 26, 1984} cally that Congress should not authorize they have flunked all their courses. Let's Yet the GAO 1984 found continuing prob­ the production of this bomb." not spend millions of dollars on a fatally lems with the Bigeye: GAO made a similar recommendation in flawed weapon for use by our soldiers on "Technical problems still plague the recent years which contributed to Congress the front line." Bigeye bomb development ... Further, the deleting all funding for the production of Copies of the GAO report entitled Bigeye bomb cannot meet the operational the Bigeye bomb. "Bigeye Bomb: An Evaluation of DOD's temperature requirement (minus 40 degrees In releasing this latest GAO report, Fas­ Chemical and Development Tests" for produc­ cell noted: PEMD-86-12BR> are available from the ing VX with the minimum purity percent­ "The only reliable bombshell we have General Accounting Office. age." [Source: GAO report of October 23, today is this report by the GAO. The evi­ 1984] dence is overwhelming: the Bigeye bomb is a 1985: The Pentagon reported again that it persistent failure with no reasonable pros­ THE EIGHTH PILLAR OF SOUND had fixed the Bigeye bomb problems: pect of it ever working properly or safely." MONEY "Bigeye bomb developmental problems GAO's final conclusions that the "Bigeye identified by DOD and reported to you in bomb is not ready for production" and that GAO reports have been corrected, and the certain problems remain "intractable" are HON. WILLIAM E. DANNEMEYER Bigeye bomb has been tested to confirm the based on a comprehensive one-year-long in­ fixes made. All problems have been fixed. vestigation. The 125-page report contains OF CALIFORNIA The Bigeye today is success story." [Source: the following six principal conclusions (page IN THE HOUSE OF REPRESENTATIVES Dr. Thomas J. Welch, Deputy Assistant to 91 of the report>: Tuesday, June 10, 1986 the Secretary of Defense for Chemical mat­ Testing to date has not been able to dem­ ters, testimony before Senate Armed Serv­ onstrate the feasibility and effectiveness of Mr. DANNEMEYER. Mr. Speaker, the eighth ices Committee, February 28, 19851 the Bigeye. pillar of sound money and credit is the princi­ In June 1985, the GAO discovered that de­ Operational testing will not address many ple of matching maturities. It asserts that spite Pentagon claims, the Bigeye bomb still of the unresolved critical questions which banks must now borrow short and lend long. does not work: remain. Otherwise, bank liabilities will mature faster "The Bigeye bomb, centerpiece of Presi­ More developmental testing may be able dent Reagan's $174 million plan to modern­ to answer some of these questions, if the than bank assets, and the forced asset-liqui­ ize the U.S. chemical weapons arsenal, re­ testing is well designed, implemented and dation that results will push interest rates mains technically flawed despite seven years reported. higher and will shrink the average maturity of of testing, according to the General Ac­ Other problems, however, a.re intractable debt. This gives rise to a vicious circle leading counting Office." versus the need to control the tem­ This series is through the courtesy of the Dante B. Fascell Bigeye operational testing." [Source: State­ still experiencing technical problems that A Venetian merchant lost his ship of ment to Senate Armed Services Committee are "intractable and not likely to be solved". cargo on the reefs of the Dalmatian coast. by Dr. Thomas J. Welch, Deputy Assistant . As he was sitting in a cove lamenting his to the Secretary of Defense for Atomic Twenty-two principal findings that dem­ loss, a mermaid appeared and inquired what Energy and Chemical Matters, April 10, onstrate that the Bigeye technical deficien­ was the matter. Feeling sorry for the mer­ 1986] cies span all areas of testing ranging from chant who lost his entire fortune in the ac­ The GAO, in a May 1986 report, has con­ ambiguous, shifting, and uncertain test cri­ cident, she dived into the sea and brought cluded that Bigeye is still a disaster: teria to sidestepping technical problems by up a boat laden with silver, and asked him if "After analyzing the available data on the falsely assuming resolution in future oper­ that was the boat he had lost. When the Bigeye bomb, GAO believes the bomb is not { ational tests to persistent inconsistencies be­ man said that it wasn't, the mermaid dived ready for production." tween weapons requirements and test pur­ again and fetched up the merchant's own ,, "From the data we have reviewed, we do poses. (pages 87-90 of the report> boat. "That's the right one", he said grate­ not believe the Bigeye has met its technical Fifty observations that expose various and fully, and the mermaid was so delighted specifications ... We conclude that while persistent testing inadequacies and failures. with his honesty that she made him a more development testing may be able to (pages 17-76 of the report) present of the other boat as well. answer some of the unresolved questions, GAO's investigation reveals new failures When he returned to Venice and told his other questions appear to be intractable and which have recently occurred in the devel­ colleagues about his good fortune, one of not likely to be solved, given the 30-year-old opmental and chemical-mixing testing of them thought that he could pull off a simi­ technology being used." [Source: GAO the Bigeye bomb. For example, when the lar coup. He loaded his boat with merchan­ report of May 1986 entitled "Bigeye Bomb: bomb was tested for transport it was tested dise, sailed to the Dalmatian coast and scut­ An Evaluation of DOD's Chemical and De­ for its resistence to temperature change and tled his ship. Then he sat down in the cove velopmental Tests"] movement, known as "shake and bake" test­ and wept. The mermaid appeared again, and ing. It failed nine out of ten "shake and upon hearing the cause of his tears, she FASCELL DUBS BIGEYE BOMB A FAILURE AND A l} bake" tests. The bomb was tested four times dived and soon produced a boat laden with HAZARD TO OUR NATIONAL DEFENSE during takeoffs on aircraft and failed twice. gold, asking if it was the same one that had ( Upon receiving a new report on the Bigeye Commenting on this startling fact, Fascell been lost. The man, who had never seen ~ binary nerve gas bomb from the General said: "Even Pillsbury makes sure their rec­ that much gold in his life, fell out of his Accounting Office . Rep. Dante B. ipes are fully and properly kitchen tested role and cried ecstatically: "0 yes, indeed!" Fascell . Chairman of the House before they'll put the 'dough boy's' seal of The mermaid was so shocked at this un­ Committee on Foreign Affairs, pronounced approval on a product." blushing impudence that, far from giving today that the Bigeye bomb is a fatally Chairman Fascell concluded by comment­ him the boat with its gold cargo, she did not flawed nerve gas weapon which poses a real ing on the fact that DOD plans to move the even restore his own to him. "You are not hazard to our national defense. Fascell said: Bigeye bomb into the operational testing only a liar," she said, "you are also an im- June 10, 1986 EXTENSIONS OF REMARKS 13169 postor", and she sailed away, leaving the posterous should be clear to every impartial 30, 1986, the Neighborhood Centers Associa­ man alone in the deserted cove. observer. The bank has sunk liquid funds tion and the Cleveland State University Center THE PROPENSITY TO SAVE into brick and mortar, against which it for Neighborhood Development sponsored a holds liabilities subject to withdrawal with­ musical production entitled "90 Years of As we have seen in the Seventh Pillar, out notice . The banks there is a significant difference between are sitting on mountains of paper losses, Neighboring." On May 18, 1986, the Cl~ve­ commercial banking and investment bank­ which will become real losses at the first land Plain Dealer published a feature art1cle ing . The former test of extensive cash withdrawals. that reviewed the history of settlement houses depends on the people's propensity to con­ Federal deposit insurance is hardly a fig­ in Cleveland. I commend this article to the at­ sume, and the latter, on their propensit~ to leaf. The assets of the insurer cover only a tention of my colleagues to demonstrate the save. The banks pool the flow of savmgs minuscule part of its contingent liabilities. continuing contributions of settlement houses from individuals, and make this pool feed Worse still, these assets are carried in the the flow of investments to every part of the in my district and would like to commend the form of government securities, and even a numerous philanthropists and socially con­ national economy. The banks borrow funds minor asset liquidation would embarrass the from the savers for various fixed terms, and government and break the market. scious individuals who have dedicated them­ lend them out to producers, entrepreneurs, Had the American banks taken to heart selves to improving the quality of life of nu­ speculators, for various fixed terms. The the ancient wisdom of the English proverb: merous Americans. banks have a balancing act to do: "short debt makes long friends", they could The article follows: they have to balance their liabilities with have avoided diyerting enormous resources [From the Cleveland Plain Dealer, May 18, assets not only dollar for dollar, but also into loan-loss reserves. maturity for maturity. That is to say, the 1986] banks must see to it that their assets VICIOUS CIRCLE SETTLEMENT HOUSES CELEBRATE 90 YEARS OF mature no later than their liabilities. This is If bank liabilities mature faster than bank SociAL SERvicEs known as the Principle of Matching Maturi- assets, then two things will happen. ( 1 > In­ ties. . terest rates will rise, as the banks are forced Centers for the elderly, day-care facilities, Since there is no investment without prwr to resort to asset-liquidation, and the public and Karamu, the black theater, are some of saving, the minimal rate of interest is det~r­ will acquire these assets only at a concession the innovative social programs begun here mined by the propensity to save . The high~r. the debt will shrink, as the banks are forced to borhood centers. propensity to save, the lower is the mmimal issue short-term debt in exchange for long­ The Neighborhood Centers Association, rate of interest and conversely. finance a massive exodus of the savers from services history on the 90th anniversary of long to short term debt. As the banking BORROWING SHORT AND LENDING LONG Goodrich-Gannett Neighborhood Center, system has to absorb more and more long­ Cleveland's first settlement house. The Principle of Matching Maturities is term debt, unwanted by the saving public, often quoted in its negative form: a bank The grandfather of the neighborhood cen­ and give short-term credit in exchange, it ters, at 1368 E. 55th St., is still in its original must not borrow short and lend long. This is becomes clear that the only cure for the the one commandment most often violated neighborhood. condition caused by drug abuse is more drug Since 1896 Goodrich has been providing by the banking fraternity. To understand abuse. the underlying temptation, we have to ~x­ educational, cultural, recreational and per­ The central bank is helpless. Any hesita­ sonal services to families and individuals, ainine the source of bank profits. The m­ tion on its part to make available the re­ vestment bank derives its profits from the said Robert L. Bond, association director. serves needed to meet the maturing liabil­ The name "settlement house" came be­ spread between the interest it earns on its ities of banks would bring down the house assets and the interest it pays on its liabil­ cause students and social workers settled in of cards immediately. The central bank the neighborhoods and lived in the centers, ities. The bank could, illegitimately, in­ would therefore continue to buy the long­ crease its profits by borrowing short at an Bond said. term bonds dumped by a disgruntled public. The centers were started to help new im­ even lower rate, and lend long at an even That is to say, the central bank would con­ higher rate because longer term b?rrow~g migrants in the late 1800s. Later the mission tinue to borrow short and lend long on an was to help migrants from the South and and lending normally command higher m­ ever larger scale. terest rates. The bank guilty of this illegit­ Appalachia. . . The vicious circle, however, cannot contin­ The centers provide a place where families imate practice is an impostor, as it misrepre­ ue indefinitely, as the average maturity of sents the true state of affairs in the balance can be together for recreational and cultur­ the debt cannot shrink to zero. Before that al activities, said Bond. They have been sheet, just as the Venetian sailo~ misrepre­ happens the bond market, like a rotten sented his situation to the mermaid. places for learning to read and write, find­ apple, will fall into the lap of the money ing jobs and solving social problems, among YOU CAN'T HAVE YOUR CAKE AND EAT IT market. The money supply will explode, the other activities, he said. But the practice is no less dangerous than supply of savings will implode, and the ~ew Settlement people were also in the fore­ it is illegitimate. The bank would obviously brave world of borrowing short and lendmg front to establish the Sunbeam School for have to borrow again and again, before its long will come to a sorry end. Handicapped Children, Legal Aid Society, assets matured. No one knows the future, Juvenile Court and Hudson School for Boys, and the bank is no exception. Future bor­ SETTLEMENT HOUSES CELE- he said. rowing conditions may be worse than those Goodrich was founded by Flora Stone at present. The bank may be confronted BRATE 90 YEARS OF SOCIAL Mather to help immigrants, then living in with borrowing costs higher than the earn­ SERVICES the Public Square neighborhood. It was an ings it has locked itself into or, in an ex­ extension of her work at Old Stone Church. treme case, the bank may not be able to HON. LOUIS STOKES The first club for the elderly here was borrow at any price. started in the early 1940s at Goodrich by A bank guilty of borrowing short and OF OHIO Oscar Schulze, a refugee from Nazi Germa­ lending long is not only an impostor but a IN THE HOUSE OF REPRESENTATIVES ny. As a former welfare director in Leipzig, liar as well. It lies in overstating the value Tuesday, June 10, 1986 Germany, he had worked with the elderly of its assets and understating its liabilities there. in the balance sheet. The bank in fact pre­ Mr. STOKES. Mr. Speaker, settlement A day nursery for children was founded in tends that it can use short term funds in houses and neighborhood centers have 1899 by the Methodist Deaconess Home, balancing its long term liabilities. But it is played a very important part in Cleveland h~s­ which later became the West Side Commu­ no more able to do this than it can have its tory. They provided a place for community nity House. cake and eat it. residents to enjoy educational, cultural, recre­ In 1874 the Woman's Philanthropic Union SHORT DEBT MAKES LONG FRIENDS ational, and personal services. opened a coffee shop to discourage the use The American banking system is in deep Since 1896, these "good neighbors" have of alcohol, and Friendly Inn Settlement later developed out of this program. trouble on account of its long-standing ad­ provided programs to bring community me~­ \ diction to the drug of borrowing short and John D. Rockefeller lived in East Cl~ve­ \ bers together. This year marks the 90th anni­ lending long. Worst offenders are the s~v­ land in the late 1890s. To get to his estate, ings banks loaded with mortgages maturmg versary of Goodrich-Gannett Neighborhood he had to travel through Little Italy and in 20 years or longer, held against liabilities Center, Cleveland's first settlement house, daily encountered many of the poor Italian maturing daily. That this situation is pre- and, in recognition of this occasion, on May iinmigrant children playing in the streets. 13170 EXTENSIONS OF REMARKS June 10, 1986 When approached by the Italian communi­ dents enthusiastic about their loyalty to the these situations have greatly influenced the ty for money to help, he have funds to build United States? If I were an American citizen nature of my dedication to the United a settlement house, which was named for rather than merely a flag, I know what my States. For example, in the 1970's, I wit­ his daughter Alta. pledge to this country would be. nessed America as it went through an The Phillis Wheatley Association and its I know because I've been around for more energy crisis. I saw natural resources being residence was begun for young black work­ than two hundred years. I was born when wastefully used without regard to future ing women who moved to Cleveland from America first declared her independence generations, but I also noticed the efforts of the South by Jane Edna Hunter in 1911. and fought to gain civil liberties for all her many Americans that decided to search for Russell and Rowena Jelliffe came to citizens. I was proudly displayed at Concord new energy sources and use existing ones Cleveland after their marriage in 1915 and and Bunker Hill, and I saw the facial ex­ more wisely. These efforts have encouraged started Playhouse Settlement , which later pressions of those Revolutionary soldiers as me to include in my pledge a vow to help became Karamu Theater. Langston Hughes, they protected their land and fought for conserve our natural resources. one of America's greatest black writers, personal freedoms. The dedication that I Yet the most vital resource that our worked there. witnessed in these men convinced me that nation has it its own citizenry, and the pro­ In 1912 Alma Adams, a blind musician, my pledge to America must include a will­ tection of these citizens is of utmost impor­ started the Cleveland Music School Settle­ ingness to take great risks in order to secure tance to the future of America. In the last ment in the Goodrich building to help the freedoms that every citizen of our century, I have repeatedly observed Ameri­ people with little income to learn music. nation deserves. can citizens as they responded to the needs The history will be re-enacted by perform­ After America achieved her independence, of the military, and I have watched hun­ ers from centers and other social service she strove to establish a sound political dreds of thousands of soldiers fight valiant­ agencies represented by the Neighborhood structure. When I was only twelve years old, ly and make costly sacrifices for their coun­ Centers Association in the musical produc­ I was displayed in a small room on the try. As a result, my pledge to America in­ tion of "90 Years of Neighboring" at 7:30 second floor of the State House in Philadel­ cludes a vow to always remember those who p.m. May 30 at Cleveland State University's phia. From a wall in the front of the room, I gave their lives for the United States. University Center Auditorium. It is being watched as fifty-five men from across the Of course, my pledge to America encom­ co-sponsored by CSU's Center for Neighbor­ country composed the Constitution of the passes more than these points I have men­ hood Development. United States. I heard their debates and tioned, and it continues to be augmented as Throughout the month, the association's their patriotic speeches, and I was im­ I observe history take place, but why can't 25 centers and social agencies will have pro­ pressed by their efforts to form an efficient all Americans have a sincere pledge to this grams celebrating the 90th anniversary. national government. I saw the commitment wonderful nation that gives its citizens more Bond said the association was Ohio's larg­ of these men as they guaranteed liberties freedoms than any other country in the est voluntary social agency with an annual for their fellow citizens, and I, too, was in­ world. The next time you stand with your budget of $12.6 million, of which $2.6 mil­ fluenced to hope for a strong, just country. hand over your heart and look at me, the lion is contributed by United Way Services Therefore, my pledge to America would be American flag, will you mean the pledge and much of the rest from federal, state and incomplete without a promise to uphold the that you recite? county governments. Constitution and to support lhe values that Its agencies employ 516 people who serve our Founding Fathers felt were important. 60,000 people yearly. The Neighborhood Years passed, and America strove to estab­ A TRADE POLICY FOR THE Centers Association was created in 1963 to lish herself firmly in the Western Hemi­ PEOPLE coordinate and provide central financial and sphere; however, at the same time that planning services for the centers and agen­ America's international position was gaining cies. ground, domestic strife was prevalent. At HON. LANE EVANS the ripe old age of eighty-four I had just OF ILLINOIS gained my thirty-fourth star, yet I knew ( "MY PLEDGE TO AMERICA" that it was not a time for celebration. With IN THE HOUSE OF REPRESENTATIVES SPEECH the secession of seven states from the Tuesday, June 10, 1986 Union, I watched the noble land I represent­ t ed be torn by civil war. I saw young boys, Mr. EVANS of Illinois. Mr. Speaker, Ameri­ HON. TOM LEWIS transformed into frightened soldiers, fight­ can companies continue to be lured overseas OF FLORIDA ing a war against those who had once been by cheap labor. The loss of American jobs, IN THE HOUSE OF REPRESENTATIVES their fellow Americans! I saw men whose fa­ particularly in the manufacturing sector, threat­ Tuesday, June 10, 1986 thers had fought together for the independ­ ens our national and economic security. ence of this country take arms against each That is why the House recently passed a Mr. LEWIS of Florida. Mr. Speaker, on May other and divide the nation! This turmoil trade bill which seeks to balance some of the 25 I had the opportunity to deliver the keynote left a bloody scar on my glorious memories inequities that have developed on the world of a once-glorious land. Because of this dis­ address at a Memorial Day celebration service trading market. I believe this bill demonstrates in Palm Beach County, FL. At that Memorial heartening experience, my pledge to Amer­ ica includes a promise to ensure that this that the United States is no longer willing to Day ceremony, David Codell, the valedictorian country will truly remain "one nation under be a dumping ground or a whipping boy in the of Palm Beach Gardens High School class of God, indivisible." field of international trade. ( 1986, shared his award-winning speech with At the close of the Civil War, however, I Some critics have labeled this bill protec­ those of us fortunate enough to be in attend­ watched with great joy as millions of slaves tionist and claim the answer is free trade. But ' ance. received their freedom. Nevertheless, a long a recent article in the Nation by Bill Goold, ad­ I This speech, entitled "My Pledge to Amer­ struggle lay ahead of them, and I watched their uphill battle to achieve equality. ministrative assistant to Representative DoN ica," is an outstanding example of the patriot­ PEASE, and John Cavanaugh of the Institute ism which is proudly displayed by many of Though they were free from the bondage of slavery, they were still prisoners of the big­ for Policy Studies shows that casting the today's young people. I applaud David Co­ otry of men. For more than one-hundred debate on trade policy between protectionism ( dell's efforts and encourage my colleagues to years, I have observed the mistreatment of and free trade is not the answer. It's not even take a moment and reflect upon the truths minorities. I have witnessed the confusion the question. The real issue in the debate is proclaimed by this young American's essay. on the faces of young children who, because based on labor rights. f It is with great pleasure that I am inserting of the color of their skin, were forced to sit I recommend to our colleagues this article "My Pledge to America" in today's CONGRES­ in the back of the classroom or ride in the which shows that a trade policy promoting SIONAL RECORD. rear of the bus. I have felt the indignation economic justice at home and abroad is the I1 of the mistreated, and I was proud to have MY PLEDGE TO AMERICA been displayed in the Freedom March on most constructive policy available to us. or education in­ eign purchases that are not offset by sales worse, Reagan is the first President in the tensive . The government abroad. And despite their differences in ide­ postwar era to deny flatly that the Federal must also do more to soften the blow of cap­ ology and rhetoric, both free-traders and government has a responsibility to help the ital shifts on workers and communities. protectionists focus their energy on country millions of American workers and firms ad­ Americans who have lost their jobs in basic bashing. The latter cook up bills to slap new versely affected by the surge of imports. industries to foreign competition in recent tariffs, quotas and sanctions on Japan, The major gainers from this shift are years need help training for new jobs. Taiwan, South Korea, Brazil and other cul­ U.S.-based multinational corporations that Finally, such policies must tackle the least prits; the former limit themselves to issuing market finished products from standardized talked-about unfair trade subsidy: the ex­ plaintive appeals for greater access to for­ parts manufactured in plants abroad. ploitation of workers abroad that makes eign markets. Recent advances in transportation, such as possible cheaper exports to the United No one, however, is asking the crucial containerization; communication, such as States. Many industries and unions in this question: How can the United States possi­ satellite telecommunication systems; and in­ country protest trade subsidies and the bly win a trade war against China, South formation systems, such as microcomputers, dumping of low-priced foreign goods on the Korea or any other country in which wages have greatly increased the ability of multi­ American market. The same outcry should are but a fraction of ours and in which U.S. national corporations to shift production be raised against "social dumping" -compe­ corporate subsidiaries have rapidly nar­ overseas to take advantage of low wages. tition from foreign workers whose low rowed the technological gap with the According to the U.S. Bureau of Labor wages result from the denial of their basic United States? The answer is that it can't, Statistics, in 1984 the hourly wage for man­ labor rights. without substantially altering the terms of ufacturing workers in South Korea, Taiwan In the short , antiworker policies may the debate. A new trade offensive based on and Brazil was 11 percent, 13 percent and 10 benefit companies that use overseas labor to labor rights offers a breath of fresh air to percent of their American counterparts, re­ produce low-priced goods for export to de­ the debate which free-traders and protec­ spectively. Even in Japan-which has the veloped countries. Echoing the robber tionists cannot ignore. largest trade surplus with the United States barons of the nineteenth century, corporate Free-trade ideology was succinctly pack­ of the four countries targeted for sanctions apologists argue that people in developing aged by Ronald Reagan last September: "I, in the trade bill sponsored by Representa­ countries are better off working for a dollar like you, recognize the inescapable conclu­ tive Richard Gephardt, Representative Dan a day than they would be not working at all. sion that all of history has taught: the freer Rostenkowski and Senator Lloyd Bentsen­ But the exploitation of labor inhibits the the flow of world trade, the stronger the average hourly compensation came to only development of self-reliant local economies tides for human progress and peace among 50 percent of that in the United States. in much of the developing world. By limit­ nations." But under the pummeling of the American factories and workers cannot ing workers' income and purchasing power, unprecedented trade deficit, industrial de­ hope to compete with their counterparts in, multinationals and host governments are se­ cline and the deepening agriculture crisis, verely restricting the growth of internal President Reagan and his diverse Congres­ say, Taiwan. Assembly workers there receive sional allies have shifted to what they label barely subsistence wages for eight-to-twelve­ consumer markets. It is as true overseas as a fair-trade position, which comes down to hour days. They live in crowded company­ it is in this country that money in the pock­ threatening retaliation against trading part­ owned dorms with no air-conditioning, de­ ets of working people creates demand for ners who set up barriers to U.S. goods-a spite 100 degree heat and high humidity, no goods and services which, in turn, creates milder dose of the medicine prescribed by potable water, no recreational facilities and jobs. Denying labor rights in developing the protectionists. no social activities. Health and safety regu­ countries perpetuates poverty and produces Even the free-traders acknowledge that lations are lax or nonexistent, even where social unrest. U.S. trade has always been far from free. workers handle hazardous products. Some encouraging steps are being taken The U.S. Trade Representative, Clayton Strikes are all but illegal under martial by the U.S. government. The Trade and Yeutter, admits that since 1980 this country law <100 percent of the affected workers Tariff Act of 1984, pushed by a coalition of has negotiated or imposed more than 425 must vote to strike). According to the Asia human rights and union activists called the textile and apparel quotas on foreign com­ Resource Center in Washington, although a International Labor Rights Working Group, petitors. Agriculture is heavily protected collective-bargaining statute is on the books, stipulates that a country's duty-free access through price supports, subsidies, tariff and there are no agreements in effect, and incit­ to the American marketplace will depend on quotas. In almost all other sectors, selective ing labor unrest is a crime. The few unions its respect for basic labor rights. The law re­ quotas, "voluntary" quotas, tariffs, subsidies that do exist are government-controlled. quires the State Department, in consulta­ and other controls govern the flow of goods The Ministry of the Interior appoints union tion with the Labor Department, to report and services. leaders, and plant managers often line gov­ annually on the ''labor rights" situation in Even if trade were not so heavily con­ ernment and company coffers with the every country. Specifically, do they permit trolled, recent developments in the world union dues they collect, while distributing freedom of association and collective bar­ economy have undermined the free-traders' official propaganda through union chan­ gaining, prohibit forced labor, set a mini­ basic premises. During the first two decades nels. mum age of employment and maintain ac­ after World War II, the American economy Piecemeal protectionism in the United ceptable standards for wages, work hours grew at a prodigious rate, and there seemed States is inadequate to stem the flood of and occupational safety and health? Finally, to be no end in sight. Most Americans saw cheap goods from such countries. China's the law allows any person or organization to their standard of living rise steadily as part exports to the United States increased by bring evidence of labor abuses to the atten­ of the general prosperity. Industries and 191 percent between 1980 and 1948, followed tion of the U.S. government. Several human manufacturing workers, producing primari­ by South Korea's and India's 026 percent rights and trade unions have already sub­ ly for the domestic market, were not threat­ each>, Taiwan's <119 percent), Singapore's mitted reports challenging the continuation ened by imports. Free trade was a high­ and Brazil's 008 percent each> and Japan's of trade preferences for South Korea, sounding principle, irrelevant to the day-to­ <83 percent). The protectionist approach Taiwan, the Philippines, Chile, Haiti, Zaire day concerns of most Americans. also contradicts U.S. policy on the interna­ and other countries. From the early 1960s to the present, tional debt crisis. Third World countries Last fall, despite vigorous opposition from America's position in the global economy that have accumulated more than $970 bil­ both the Reagan Administration and multi­ changed dramatically. Easy access to critical lion in debt have been told by U.S. banks national corporations, Congress enacted a raw materials at low prices disappeared in and government officials and by the Inter­ law that prohibits the Overseas Private In­ the upheaval wrought by Third World na­ national Monetary Fund that in order to vestment Corporation, a government tionalism and producer cartels. U.S. exports obtain new loans to repay the old ones, they agency, from issuing business risk insurance did not keep pace with imports flooding the must export more and import less. That to U.S. multinationals for projects in coun­ American marketplace, many made by over­ message has been forcefully sent to Brazil, tries that do not grant their workers inter­ seas subsidiaries of U.S. corporations. In the Mexico, South Korea and about fifty other nationally recognized rights. Public hear­ past five years, a U.S. trade surplus has debt-ridden countries, but U.S. protection­ ings before the OPIC board of directors will given way to an enormous deficit. ism makes it impossible for them to export. be held each year to receive formal requests 13172 EXTENSIONS OF REMARKS June 10, 1986 to curtail OPIC operations in specific coun­ lor of science degree in biological chemistry: only important to the future research capabili­ tries where there is evidence of labor rights Andrade Riquelme Ruth, Aleman, Dominguez ties for New Mexico Tech but for our Nation violations. And on March 13 the Fair Trade Andres, Alonso Garcia Pablo Francisco, Avila and Economic Justice Act of 1986 was intro­ as a whole. duced in Congress by Representative Don Lopez Humberto, Bustos Terrones Estela, New Mexico Tech is nationally known for Pease and twelve of his colleagues. It is de­ Cornelio Robles Roberta, Castrejon Castro the work it has completed in the areas of pe­ signed to treat as an unfair trade practice Edith, Chavez Alcocer Rogelio, Hernandez troleum recovery research, military hardware the competitive advantage in international Aragon Rogelio, Joya Riquelme Hermelinda, research and explosive technology research. trade that some countries derive from the Kuri Cutalan Arqueles, Medina Peralta Gloria, The research that would be conducted on the systematic denial of workers' rights. Sup­ Marban Bahena Pedro, Moyao Galarza land in question would be undertaken by the porters of this legislation point out that to Ruben, Ocampo Bahena Marcelina, Orihuela promote fair competition current rules in terminal effects research and analysis [TERA] world trade outlaw capital subsidies and Martinez Aurelio, Ortiz Avila Juan, Porras Bar­ group which is a component of the research dumping, but they condone competition at bosa Ma. Leticia, Ramirez Villegas Jose Luis, and development division at New Mexico any cost as far as workers are concerned. Romero Apaez Mecaela, Santiaguillo Hernan­ Tech. Such legislation could promote a trade dez Santiago, Taboada Bahena Elia, Taboada The entire military community is looking to policy that combines the protectionists' con­ SanMartin Alma Delia, Teliz Astudillo Isidro, TERA to assume more of a role to fulfill their cern for economic justice at home with the Varela Velasquez Ma. de Jesus, Velasco Ori­ explosive testing obligations. This work for the advancement of workers rights and develop­ huela Rogelio, and Vicario Castrejon Ulises. purposes of safety and security requires large ment overseas. Support for this approach Candidates for a bachelor of science can be expected from communities in the expanses of land. The land that would be con­ American Rust Belt, human rights groups degree in mathematical physics: Adame Urios­ veyed to New Mexico Tech is a large amount and development and peace organizations. tegui Miguel; Apaez Cruz Raul, Aponte Alavar­ but is necessary to meet both line-of-site and Some labor unions, increasingly aware that ado Oscar, Barbosa Castro Rodolfo, Barrera safety requirements. The land is adjacent to protectionism's protections are short-term Hernandez Gabino, Castro Velazquez Fran­ the present laboratory and well situated for at best, are adding their weight. Sixteen of cisca, Catalan Roman Esteban, Diaz Catalan security purposes. The land will allow for them, along with the A.F.L.-C.I.O., were Jesus, Giles Alonso Fidel, Gonzalaez Ramirez among the co-sponsors of a conference high­ economies of operation that might otherwise Jose, Hernandez Guzman Leonel, Miranda not exist in a location removed from the exist­ lighting this approach earlier this month. Guerrero Sandra, Mugica Marban Rene, Another ready potential group of backers ing facility. The legislation recognizes and re­ consists of the owners of small domestic Mundo Gatica Rodrigo, Najera Nieves Gra­ spects all current land uses. An arrangement firms producing everything from apparel to ciela, Reyes Mota Jorge Luis, Rueda Terrones has even been worked out with ranchers who castings. At this stage, unions, church Mario, Campos Ocampo Ma. de Lourdes, and graze their cattle on the land to continue this groups, human rights organizations and Mata Cortes Ruben Daria. practice. Additionally, environmental concerns others must put pressure on the Reagan Ad­ Bachelor of business administration degree have been worked out to build a water reser­ ministration to comply with the new legisla­ candidates are: Arteaga Sanchez Domingo, tion and on Congress to extend it to new voir to protect an endangered species of iso­ Damian Cuevas Santiago, Escobar Munoz pods. realms. Estela, Espin Garcia Magdalena, Flores Mayo A trade policy that promotes economic TERA evolved from ordinance research justice at home and abroad through an ag­ Hugo, Garcia Gonzalez Rosalina, Gaytan Cas­ projects during World War II and has been a gressive campaign to extend basic labor trejon Cruz Aleyda, Giles Cruz Ma. Elideth, part of New Mexico Tech since 1949. Over rights in countries that challenge the Gonzalez Alonso Julia, Joya Jaimes Isidro Al­ the years, TERA's combination of knowledge berto, Lagunas Castrejon Martin, Marban United States in the global economy would and experience, specialized test facilities, and simultaneously increase the security of Munoz Norma, Marquez Ocampo Maricruz, reasonable operating costs have served to American workers and make the U.S. econo­ Ocampo Mata Oscar, Palacios Nava Dora make it a very important defense related re­ my more competitive. In their approach to Maria, Soto Garcia Ma. Cecilia, Toledo Arcos search center. My bill will enable TERA to the trade dilemmas of the 1980s, Americans Hilda, Torres Antunez Gilberta, and Brito should be guided by the motto the Knights expand and grow. Gaytan Consuela. of Labor adopted one hundred years ago: This bill is necessary. New Mexico Tech I would like to ask my colleagues to join "An injury to one is of concern to us all." needs to have clear title to this land because with me in giving our best wishes to the inau­ they cannot lease it from the Bureau of Land gural graduating class at the Centro de Bachil­ Management. BLM would be prohibited from IN HONOR OF MARIO JIMENEZ lerato Technologico in Huitzuco, Guerrero, issuing any permits and leases under the Fed­ Mexico and to my good friend Mario Jimenez. HON. ESTEBAN EDWARD TORRES eral Land Policy and Management Act of 1976 [FLPMA] because of the unique and special OF CALIFORNIA INTRODUCTION OF THE NEW uses that the land would be used for. The IN THE HOUSE OF REPRESENTATIVES MEXICO TECH LAND PUR- only way to ensure that these nationally im­ Tuesday, June 10, 1986 CHASE ACT portant research projects can continue is if Mr. TORRES. Mr. Speaker, I would like to this bill is passed. call to the attention of my colleagues the HON. BILL RICHARDSON Mr. Speaker, this legislation is fiscally re­ honor that has been bestowed on my good OF NEW MEXICO sponsible. The bill specifically contains lan­ friend Mario Jimenez of Whittier, CA. IN THE HOUSE OF REPRESENTATIVES guage which authorizes and directs the Secre­ On June 28, 1986, at the inaugural gradua­ tary of the Interior to convey this land at fair tion ceremony for the university at his birth­ Tuesday, June 10, 1986 market value. Preliminary estimates show the place, Huitzuco, Guerrero, Mexico, Mr. Jimen­ Mr. RICHARDSON. Mr. Speaker, I want to land to be worth around $650,000. The univer­ ez will serve as the "Padrino de Ia Genera­ take this opportunity to share with my col­ sity plans to work with State lawmakers to ar­ tion" for the class of 1986. leagues today a bill I am introducing which will range for an appropriation to purchase the Mario Jimenez, a community leader and phi­ convey some 6,000 acres of Bureau of Land land. It is my understanding that New Mexico lanthropist in my district, has a long history of Management land to the New Mexico Institute Tech's request has already gleaned approval supporting education. As a successful busi­ of Mining and Technology-more commonly by New Mexico's board of educationar fi­ nessman in Pica Rivera, Mario has dedicated known as New Mexico Tech. nance-evidence of the State's commitment his time and resources to many programs and The land that will be conveyed in this bill is to this project. activities that support quality education for necessary so that valuable educational re­ Further protection is written into the bill for young people. He also serves on my congre­ search and testing work can continue. At the the Federal Government's interest in the land. sional awards council, which recognizes the present time the university's field laboratory The bill reserves to the Federal Government volunteer contributions of young people in my does not have enough usable space. If the any mineral rights associated with the land. In district. university's present field laboratory space is addition, the school has agreed to perform In honor of the first graduating class at the not expanded an important component or our and provide the Secretary of the Interior with Centro de Bachillerato T echnologico, I con­ Nation's defense related research and testing a survey of the archaeological resources of gratulate the following candidates for a bache- capabilities will be hurt. This legislation is not the area. This conveyance of land is subject June 10, 1986 EXTENSIONS OF REMARKS 13173 to all valid and existing rights such as existing on the amant of waste that could be stored in Federal activities with respect to the selection grazing permits, which I mentioned earlier, the first repository. The act established a of a second repository. geothermal leases or mining claims. process for selecting, testing, and construct­ In addition to terminating the second reposi­ Mr. Speaker, this bill will provide New ing a first repository, and also called for a tory selection, H.R. 4664 calls for the estab­ Mexico Tech with the additional land it needs similar but later selection process for a lishment of an independent scientific panel to fulfill TERA's defense-related commitments. second repository, but specifically requiring and a moratorium by Congress if DOE has not The land is adjacent to the present laboratory Congress to authorize actual construction. By commenced disposal in the first repository by and will meet the requirements for safety and starting later on picking a second site and by . 1998, as required by the 1982 act. At that security. The testing at TERA has proven to requiring later congressional authorization, point, recognizing the existence of an obvious­ be economical-costing one-eighth to one­ Congress left open the obvious possibility that ly serious problem, DOE's entire program tenth of what it costs the Federal Government this nation would never construct a second re­ would be halted until Congress could reevalu­ to conduct similar tests. TERA is a unique and pository. ate the disposal of the wastes and the merits important component in our overall defense The act also very clearly indicated that fac­ of alterative means of disposing of high-level related testing facilities. I hope that my col­ tors that should be analyzed to" qualify or dis­ wastes. leagues will take the opportunity to review the qualify a site should be ones which common I believe this legislation clearly follows the bill and will consider joining me in this effort to sense would dictate are overriding for human logic which DOE officials have now come to allow New Mexico Tech to expand and grow. and environmental safety. Such was clearly recognize: First, by their own admission, there Thank you. not the case, however, in the way in which is no scientific or technical need for a second DOE carried out this program for the second repository; second, it makes no sense to go repository. forward at the present time if at all with a DEPARTMENT OF ENERGY Instead, DOE focused almost exclusively on process of building a second storage site that DROPS THE SECOND HIGH­ geologic conditions, and ignored transporta­ could easily cost $10 to $15 billion; third, cur­ LEVEL WASTE REPOSITORY tion, proximity to water supply and other rent DOE projections on the amount of wastes issues critical to the safe storage of nuclear to be generated in the coming decades have HON. OLYMPIA J. SNOWE wastes. Many of these factors which should been scaled back significantly. DOE no longer OF MAINE have been investigated immediately were de­ expects to produce over 140,000 metric tons, IN THE HOUSE OF REPRESENTATIVES ferred for study in the years ahead. For the as they projected in 1982. Instead, they now State of Maine, had the second repository se­ Tuesday, June 10, 1986 anticipate the amount of wastes generated lection process gone forward, it would have may be as low as 7 4,000 metric tons if one Ms. SNOWE. Mr. Speaker, on May 28, the meant spending years in a ruinous limbo-de­ assumes no new orders for commercial reac­ '\ Department of Energy [DOE] announced the spite the knowledge of conditions specific tors-and we haven't had a new order since indefinite postponement of any further activi­ enough to disqualify immediately our two pro­ 1978. ties with respect to selecting a second under­ posed sites. Thus, this legislation completes the statuto­ ground repository for high-level radioactive The two sites in Maine both had basic at­ ry side of the action taken by DOE. In fact, wastes. I believe this decision was sensible tributes DOE's computers found interest in: Congress needs to take three important steps and reflected a clear understanding by DOE large granite rock bodies beneath the surface. to follow up on DOE's determination. First, no officials that there is no need for a second re­ Unfortunately, DOE's selection system wasn't further funding, for th is year, fiscal year 1987 pository. interested, for example, in the fact that 27 or successive years, should be appropriated In suspending the selection process for a percent of one site is under the ownership of for the second repository testing and selection second site, DOE effectively removed a tre­ the Passamaquoddy and Penobscot Indians, process. Second, we must amend the Nuclear mendous concern from the citizens in the even though the consideration of site owner­ Waste Policy Act to terminate the statutory re­ State of Maine and other States that had sites ship was deemed by DOE to be important. quirements for a second repository. And, third, under consideration. Fundamentally, however, The fact, over 90 percent of the lands within we must provide adequate funding to bolster I believe DOE made a sound public policy de­ this site are either trust-owned, trust-designat­ the exploration of alternative technological termination for itself and for the Nation-first, ed or subject to future purchase by the tribes, methods of disposing of high-level wastes. because the selection process for locating a as prescribed by the Indian Land Claims Set­ Mr. Speaker, the citizens of Maine deserve second site was dangerously flawed, and tlement Act of 1980. much credit for their active participation and second, because we should not spend billions Equally lacking in common sense was the involvement in an important national issue. of dollars building a repository deemed unnec­ selection of Maine's other site, the Sebago Public participation assisted immensely in the essary by DOE and other authorities. Lake area, which is centered in one of examination of DOE's guidelines and selection With this announcement on the second re­ Maine's most important vacation regions. This process. The very specific information people pository, it is important to put the matter in area's lakes supply water for one-third of our provided from their first-hand knowledge perspective, especially considering the devel­ States population. Furthermore, population es­ helped to point out serious flaws in the selec­ opments of the last several months which timates made during the last several months tion process and in the sites actually selected. served to create a lingering threat in Maine pointed out the sheer inaccuracy of DOE's I am pleased that DOE has recognized the and six other States. data on population density. DOE failed to ac­ wisdom of terminating the second repository, In January of this year, DOE issued a draft count for the summer influx into the Sebago and as we move forward we must make sure area recommendation report [ARR], which Lake area, which expands the number of that no further mistakes are made on this im­ named 12 crystalline rock sites in seven people in the area by many times over: hardly portant matter of disposing these wastes States, including two sites in Maine, that were a factor one ought to ignore when examining safely. to be considered potentially acceptable to factors that should preclude the disposal of store high-level wastes. Since that time, resi­ nuclear waste. dents of Maine examined how its two sites In sum, DOE's guidelines for selection of HEALTH PROTECTION ACT OF were picked. The conclusion reached by me the second repository were flawed and dan­ 1986 and by thousands of other Maine residents gerously misguided. Had the process gone was that the selection process designed and forward, residents of my State would have implemented by DOE's Office of Civilian Ra­ had every right to harbor complete outrage HON. MIKE SYNAR dioactive Waste Management was seriously toward the Federal Government. OF OKLAHOMA flawed. Following formal hearings held by DOE in IN THE HOUSE OF REPRESENTATIVES The Nuclear Waste Policy Act of 1982 Maine in early April, I introduced legislation, charged DOE with designing a process to along with my Maine colleagues, Congress­ Tuesday, June 10, 1986 locate a second repository. When the act was man MCKERNAN and Senator MITCHEU, and Mr. SYNAR. Mr. Speaker, 350,000 Ameri­ considered by Congress, a provision was also over 30 other Members of Cong~ess. This leg­ cans died last year from smoking. That is the added to the conference report in the other islation, H.R. 4664, amends the Nuclear equivalent of the population of Tulsa, OK, and body placing a limitation of 70,000 metric tons Waste Policy Act of 1982 by terminating all each one of these deaths could have been 13174 EXTENSIONS OF REMARKS June 10, 1986 prevented. For all of their horrors, Bhopal and vertising still would fall within the remaining FARMING THE TAX CODE Chernobyl appear insignificant by comparison. three criteria established by Central Hudson. '• We spent an estimated $22 billion last year First, the ban must involve a substantial HON. THOMAS E. PETRI to treat smoking-related diseases, of which Government interest. Little needs to be said ~~ OF WISCONSIN the Federal Government paid $4 billion. We on this point. One could hardly imagine an lost $43 billion in lost productivity because of issue of greater Government concern than the IN THE HOUSE OF REPRESENTATIVES smoking. loss of 350,000 lives annually from a single Tuesday, June 10, 1986 I These statistics are mindboggling, but we product. Far less compelling interests have Mr. PETRI. Mr. Speaker, the May 24, 1986 have grown numb to them-largely as a result been held sufficient to constitute a substantial edition of the Wisconsin Agriculturalist news­ of the advertising techniques of tobacco man­ Government interest. paper carried a very illuminating article on tax ufacturers. We have grown accustomed to Second, the ban must advance the Govern­ shelters and their effects on America's family seeing tobacco portrayed as socially accepta­ ment interest. In this case, the issue is wheth­ farms. For the benefit of my colleagues and ble and healthful. We have been led to be­ er a ban on tobacco advertising would result the general public I ask that the article be in­ lieve that smoking brings success, glamor, in decreased consumption. In Central Hudson, serted in the RECORD at this point. and independence. But we have failed to ac­ the Supreme Court thought it obvious that a knowledge the tremendous costs that accom­ FARMING THE TAX CODE correlation exists between advertising and pany the widespread use of tobacco. You may be wondering if what you hear demand. The tobacco industry would not There are no easy solutions to this problem. and read about "tax loss" farming is really spend $2 billion annually on advertising and happening. Congress has prohibited radio and television It is right here in Wisconsin, says Ron advertising, required warning labels on most sales promotion unless it knew that these ef­ forts resulted in increased sales. Jensen, Dane county farm management tobacco products and print advertisements, agent. Hardly a week goes by that he isn't and imposed excise taxes on cigarettes, Other cases have held that Congress need contacted by non-farmers who want to make cigars, and smokeless tobacco. While these not prove empirically that smoking and tobac­ an agricultural investment to lower their were important and significant steps, it is clear co advertisements are linked. As explained by income taxes. that it is time for one further step. the Fifth Circuit Court of Appeals in Dunagin In a recent week, for instance, he has been contacted by: Today I am introducing legislation with Con­ versus City of Oxford, Mississippi, a case which upheld a State ban on print and broad­ An out-of-state physician who wants to gressmen LOWRY, SWIFT, NIELSON, HANSEN, buy a 70-cow dairy farm in Rock county. STRATTON, STUDDS, ATKINS, and MONSON to cast liquor ads: A group of investors who are checking ban the advertising and promotion of all to­ [W]e hold that sufficient reason exists to into setting up a high-tech dairy operation bacco products. Our intent is to continue to believe that advertising and consumption in Dane county. I l keep this issue at the forefront of public dis­ are linked to justify the ban, whether or not An Englishman searching for a farm to cussion while we search for the most effective concrete scientific evidence exists to that buy in southern Wisconsin. effect. An illinois bank president who wants to means of discouraging tobacco use. We real­ buy a farm. ize that this bill may be altered as it pro­ The 10th circuit stated in Oklahoma Tele­ They all want to invest in farming for the gresses through the legislative process. Re­ casters Ass'n versus Crisp that it is not "con­ same reason- to use losses from farming to gardless how Congress decides to further ad­ stitutionally unreasonable for the State of lower their income tax bill while still build­ dress this problem, it is essential that we Oklahoma to believe that advertising will not ing equity in their farm operations. It's per­ eliminate the deceptiveness of modern tobac­ only increase sales of particular brands of al­ fectly legal to do and probably smart money co advertising. coholic beverages but also alcoholic bever­ management on their part. There are those who will argue that a ban Jensen traced the following example to i ages generally."; In Williams versus Spencer, show how an investor shelters income by in­ on tobacco sales promotion violates the first the Court stated that "an advertisment en­ vesting in production agriculture. Last No­ amendment. We have approached this issue couraging the use of drugs encourages ac­ vember, he wrote to Alta Verde Industries, a carefully, and have reached the strong conclu­ tions which in fact endanger the health or Texas cattle feeding operation which adver­ sion that such action is fully supported by Su­ safety of students." And finally, in Capital tises tax deferrals in the Wall Street Jour­ ) preme Court rulings on the subject. Broadcasting versus Mitchell, a decision which nal. The advertisement goes something like this: "If you need a tax deferral on your The Supreme Court case of Central Hudson was upheld by the Supreme Court, the district Gas & Electric Corp. versus Public Service income tax, consider feeding cattle." court found that there is a "close relationship In ) Commission was the Court's clearest expres­ reply to Jensen, Alta Verde sent a between cigarette commercials broadcast on letter, brochure, and budget sheet on their sion of the standard for evaluating an adver­ the electronic media and their potential influ­ operation. The letter informed Jensen that, tising ban. The Court established a four-part "Alta Verde can help you conserve tax dol­ test for evaluating Government restrictions on ence on young people. Turning to the final prong of Central Hud­ lars through our cattle feeding tax deferral commercial speech: shelter. Cattle feeding is considered by son's four-part test, Congress must demon­ At the outset, we must determine whether many tax consultants to be the finest type the expression is protected by the First strate that a ban on tobacco advertising is no of investment for good profit possibilities Amendment. For commercial speech to more extensive than necessary to meet the and a high write off potential- two to one. come within that provision, [1] it .. . must Government interest. Congress had taken nu­ You get two dollars of tax savings for every concern lawful activity and not be mislead­ merous less restrictive approaches to limit to­ dollar invested." ing. Next, we ask [21 whether the asserted bacco consumption, including a ban on radio The budget sheet gave details of the po­ tential tax savings. Three investment possi­ governmental interest is substantial. If both and television advertising, strengthened health inquiries yield positive answers, we must de­ bilities were offered- the purchase of 250 termine [3] whether the regulation directly warning labels, and increased excise taxes. thin number 1 and 2 Okie heifers, 250 advances the governmental interest assert­ While these efforts have resulted in increased number 1 crossbred steers, or 175 Holstein ed, and [4) whether it is not more extensive consumer awareness of the health risks of steer calves. The total cost for buying and than is necessary to serve that interest. smoking, their effect on overall consumption feeding out the Holstein steers to market has been minimal. A total ban on tobacco pro­ weight, for instance, was projected at A case could be made that all cigarette ad­ $116,000, of which $40,000 was cost of the vertising is misleading because none of the motion is the next logi~al step toward reduc­ 175 steers. advertising makes full disclosure of all known ing tobacco consumption. The finished Holstein steers were further risks, and the addictive nature of the product We hope that those involved in the promo­ projected to be sold for $123,000- leaving a is never mentioned. Under the Central Hudson tion of tobacco sales will use this legislation projected profit of $7,000. test, this finding alone would allow Congress as an opportunity to work with us. My door will To do all this, the investor would need to always be open to hear all viewpoints. I invite invest only $26,000. The remaining cost to prohibit the advertising and promotion of to­ would be borrowed from a local lender at 2 bacco. representatives of the tobacco and advertising percent above the prime interest rate. Even if current cigarette advertising were industries, the print media and others to take But here's where the tax shelter comes determined not to be misleading in the consti­ advantage of this offer so we can go forward into play. For the $26,000 investment, the tutionally relevant sense, a prohibition on ad- together. investor could take a $73,000 tax loss from June 10, 1986 EXTENSIONS OF REMARKS 13175 his non-farm income. In other words, for This dome rings out with the history most dynamic industries who will find over­ every $1 he invests, an estimated $2.78 could which has taken place beneath it. It rever­ seas markets closed to them, and consumers be taken as a tax loss. berates with the sounds of life as democracy who will pay higher prices on thousands of For an individual in the 50 percent federal renews itself daily within it. It recalls with products. Additionally, American farmers will tax bracket this scheme could save dents and notables have lain here in state to lose export sales as they are the primary him/her over $43,000 in federal and state receive the salute of our people. target of retaliation when tariffs and quotas taxes. Not bad return for a $26,000 invest­ Today's ceremony of remembrance is in are imposed on foreign imports into this coun­ ment that the investor gets back when the keeping with the long and hallowed tradi­ try. cattle are sold, plus a possible profit. tions of our nation to revere life thus to re­ The United States has made great strides in What disturbs Jensen is that investors in member those who have died and the rea­ dealing with the basic causes of our trade def­ this feedlot have an unfair advantage over sons for their demise. icit. Since February 1985, the Japanese yen farmers. Their investment is being subsi­ We assemble again today in our annual and the West German mark have risen over dized by the U.S. Treasury Department taking of this moment, together to remem­ through the tax write offs. That's true for ber what had heretofore been remote for 50 percent against the dollar. These currency almost all types of loss farming. most of us who had not directly survived realignments usually take 12 to 18 months to Jensen is further convinced that much of the Holocaust or had been a liberator for show substantial effects on trade flows. By the overproduction of farm commodities in those who had survived. late 1986, the effects should become quite this country and the resulting poor prices We now know and are learning so much visible and substantial improvements in the are due to a large extent to such outside in­ every day about the Holocaust which had overall U.S. trade balance should occur in vestors. As an example, the Alta Verde feed­ intentionally and unwittingly been pro­ 1987. gramed to forget. Each day reveals some lot, with its 70,000 head capacity, finished While the key to successful trade lies with out 60 percent of the total cattle fed out in among us herein this country who were per­ Wisconsin. petrators. Sometimes we are elevated by the free trade, it must also be fair trade. Our dedi­ Some members of Congress are also con­ story of a modest person who still lives who cation to free trade is reinforced by a determi­ cerned with outside investing in agriculture enobles life because of acts of heroism com­ nation to identify and halt cases of unfair trad­ being used as a tax shelter. Several have mitted so very long ago without a second ing practices against U.S. producers. We must sponsored legislation to limit the amount of thought except it was the right thing to do. continue to be aggressive in identifying these off-farm income that could be sheltered Yet we are still shadowed by the question unfair trade practices against American pro­ through farm operation. But witnesses at a of how such monstrous acts could have been ducers, forcing other nations to play by the hearing on the matter in Washington on committed amidst such claims to civility and rules. Our goal should be to sustain the May 1 differed on how to solve the problem. decency. It can truly be said ultimately so Limiting the cash accounting method and much that happened to six million Jewish progress brought on by the economic recov­ modmcation of speedy depreciation rules people, hundreds of thousands of Gypsies, ery program of open markets, lower taxes and were among the ways suggested for restrain­ and homosexuals occurred because millions lower interest rates-not disregarding this pro­ ing outside investment in agriculture. of good people when offered the chance did gram by creating zero sum protectionist legis­ Jensen believes tax shelters can be eliminat­ nothing to help. lation. ed by allowing farm tax losses to be carried Our aim must be to change the odds in The excellent editorial from the Star-Ledger forward, only against future farm income. this ever increasing turbulent world in favor follows: There is no easy answer. But Congress of decency so that when offered the great could be receptive to a change as it looks for honor to save a life that our response is im­ PROTECTIONIST BACKSLIDING ways to increase tax dollars while reducing mediately affirmative. That is why this Na­ It was only a matter of time before sim­ the agricultural budget. Changing the tax tional Day of Remembrance to memorialize mering protectionist sentiments in Congress code to eliminate "tax loss" farming could the victims of the Holocaust is best focused boiled over into an intemperate legislative help do both . upon the positive act of remembrance to reaction. That lamentable development has .· assure it never happens to any one else emerged in the House, which approved. in a every again. Simple tears however unending one-sided vote, a measure that would impose MARK E. TALISMAN'S YOM do not constitute such remembrance to rigorous import restraints, an action with a HASHOA ADDRESS honor the memory of the victims. regressive potential for touching off a de­ Our pledge to act upon that memory to bilitating international trade war. assure that the future of our children will This is a blatant act of election-year legis­ HON. WILLIAM LEHMAN be bright based upon our knowledge that lating, an economic response that unques­ OF FLORIDA will know where we have come in this histo­ tionably will have broad popular support in IN THE HOUSE OF REPRESENTATIVES ry to be sure where we must go, never re­ back-home constituencies but will create peating the horrible lapses which occurred havoc in U.S. relations with its trading part­ Tuesday, June 10, 1986 allowing millions of innocent people to be ners. Troubled farm states would have their Mr. LEHMAN of Florida. Mr. Speaker, I destroyed. problems further compounded by trade re­ would like to share with those who may not It is said that "Ye shall build up the foun­ straints. have been present on May 6, 1986, Yom dations of many generations and those that The proposed trade curbs will not solve shall be of thee shall build up the old waste the problem of the nation's record trade im­ Hashoa, the moving words of Mark E. Talis­ places and be like a spring of water whose balances