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13622 EXTENSIONS OF REMARKS May 24, 1983 EXTENSIONS OF REMARKS RETAIN THIRD-YEAR TAX CUT, element of our success in the November cut and income tax indexing must be re­ INDEXING 1980 elections, and following those elections tained as a matter of fairness to middle- and we went about the business of implementing lower·income Americans. The third-year tax what we had promised. By and large, we put cut, in fact, provides middle- and lower­ HON. JACK FIELDS in place an economic program that would income Americans with their first real tax OF TEXAS achieve those goals. relief. Wealthy Americans received the bulk IN THE HOUSE OF REPRESENTATIVES Today, we find ourselves, and the program of their tax break back in 1981, when the we put into place, under attack- not only by top marginal tax rate was reduced from 70 Tuesday, May 24, 1983 the Democratic "loyal opposition," but from to 50 percent. But middle· and lower·income •Mr. FIELDS. Mr. Speaker, I want to within our own ranks! Americans' tax cuts that year and last were bring to your attention, and the atten­ The U.S. House, having passed the wiped out by higher Social Security taxes tion of my colleagues, an article writ­ "Democratic Budget," has endorsed tax in­ and "bracket creep." ten by my good friend, VIN WEBER, creases that can be achieved only by repeal­ It was the third-year tax cut that was de­ ing tax indexing and/or the third-year tax signed to most help middle- and lower­ which appears in the current edition cut. The Senate now is considering whether income taxpayers, with fully 72 percent of of Human Events. or not to repeal these major tax reforms. the benefits of that tax cut going to middle­ The article points out that the third­ There are at least three reasons to retain income taxpayers. And repeal of the third­ year tax cut, and income tax indexing, these tax provisions. year tax cut would mean that taxpayers must be retained if the First, higher tax rates will not translate earning between $10,000 and $50,000 a year is to continue the economic recovery into lower federal deficits. Second, fairness would lose over 30 percent of the tax relief currently in progress. Congressman demands that the third-year tax cut and in­ from the cumulative three-year tax cut pro· WEBER is to be commended for his dexing be retained. And third, supply-side gram. Upper-income taxpayers, those earn­ economics, given a chance to work

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. May 24, 1983 EXTENSIONS OF REMARKS 13623 Congress completely ignores this relation­ tion, loss of friends and relatives, and Bob Holt is one of those fortunate ship when it tries to reduce the deficit debilitating ailments. A simple lack of people. I think Bob must have been through tax increases. Raising taxes on an transportation can isolate one so that economy that has seen its savings base dry born with newsprint on his fingers and up, its investment choked off and its pro­ he or she cannot continue being a pro­ ink in his blood; he will certainly go to ductivity stifled is like adding another leech ductive citizen leading an independent his grave that way. to a dying patient in the futile hope of lifestyle. Some older Americans feel While still in high school in his "bleeding" him back to health. that after many years of being produc­ native Montana, Bob got a job putting A look at the real world experience of the tive that they now lead unfulfilling away type at the local newspaper. In past year provides further evidence of the lives. those days type was something tangi­ need for tax reduction in order to generate One organization that is doing some­ ble and weighty-it was made of lead. increased revenue to the federal govern­ thing about this situation is Green ment. Anyway, there must have been some­ The largest, and only "real" tax cut effec­ Thumb, Inc., sponsored by the Nation­ thing appealing about the job because tive in 1981, was the reduction in the top al Farmers Union. Green Thumb, Inc., when Bob graduated from the Univer­ rate from 70 to 50 per cent. The Treasury operates under a grant agreement sity of Montana, he went right to work Department estimated, at the time the tax with the Employment and Training on the Anaconda Standard as a report­ cut was approved, that this lowering in the Administration of the Department of er. It was the start of a lifelong and re­ top rate would cost the government $5 bil­ Labor with Federal funds appropri­ lion in revenues in 1982. Instead, tax reve­ warding career. ated under title V of the Older Ameri­ During World War II, Bob, like nues from upper-income taxpayers in this cans Act and contributions from local top bracket are running 10 per cent higher and State agencies. many of us, went into the service. this year than last, a clear signal that the Again, good fortune smiled, because he tax rate cut is pulling money out of tax Green Thumb, Inc., recognizes an was assigned to the Pasadena Regional shelters and into productive-and revenue­ important fundamental philosophy for all older Americans-that is, the right Army Hospital-where he met a lovely generating-uses. WAC named Lois, later to become his Furthermore, reductions in the capital and the need to work. Green Thumb, gains tax have resulted in dramatic in­ Inc., projects demonstrate the value of wife. After the war, Bob worked on creases in the amount of capital available to senior workers to their communities several papers around southern Cali­ venture capital firms. Private venture cap­ and society. Some of the types of fornia before joining up in May 1949, ital partnerships raised 65 per cent more projects involved are: Outdoor beauti­ with the flagship of the John P. funds in the first half of 1982 than in the fication and recreation, transporta­ Scripps newspapers, the Ventura first half of 1981. tion, nutrition, crime control, fire pre­ County Star-Free Press, in my home­ Only by attracting more money into sav­ town. ings and investment, as we are now begin­ vention, park development, informa­ ning to do through lower tax rates, can we tion and referral, community and On May 27, after 34, years and 11 hope to create the kind of expanding econo­ senior centers, and a variety of other days, Bob will retire from the Star as my that will generate sufficient revenues to community and development activi­ the dean of Ventura County reporters. significantly reduce federal deficits. ties. All of these projects provide In his career, he has covered just So then, this is the challenge before us: wages and an opportunity, through about everything newsworthy that has create an expanding economy in which host agencies, for senior rural workers happened in the county-politics, mur­ working Americans are encouraged to save to use their skill and talent to better ders, natural disasters-the full range and invest, and an economy in which busi­ of man's glories and follies. nesses are encouraged to modernize, expand their communities in addition to creat­ and hire more workers. ing a more autonomous way of life for For the past 30 years, Bob has also Congress soon will have an opportunity to themselves. written a feature column appearing endorse that kind of an economy when it Green Thumb, Inc., and other senior three times a week. Someone at the votes to retain or eliminate the third-year citizens self-help organizations serve paper figured that works out to well tax cut and income tax indexing. They will to change stereotypes of older Ameri­ over 2 million words; "homeric" is the have an opportunity to treat all Ameri­ cans by demonstrating to the Nation only word that applies to such a feat. cans-upper-, middle-, and lower-income that these citizens can and should The reasons for Bob's success as a Americans alike-fairly. But more than that, they will have an opportunity to move work, thus decreasing dependence on reporter are clear; he has an inquiring away from the disastrous economic policies public assistance and improving mind and a unique readable style. And of the past and make possible long-term eco· human group associations. In addition, he works at it. Fair, objective, and in­ nomic well-being for all Americans. they promote employment and provide formed with a depth of background I strongly urge them to seize that oppor­ essential community services and fa­ that makes even complex issues clear tunity and retain the third-year tax cut and cilities. for the reader, his stories are models income tax indexing.e The most important resource in the of journalistic craftsmanship. United States is its people. In older He is a reporter's reporter. He rises RECOGNITION OF OLDER Americans we have a productive and at 5 a.m., reads 12 newspapers a day, AMERICANS experienced group of citizens. Let us and has spent many an election night draw from this considerable resource. waiting up until dawn for final re­ HON. J. ROY ROWLAND Let us become more sensitive to the turns. He is a fixture on the county needs of our elderly by being support­ scene, whether covering the Ma OF GEORGIA ive, yet, allowing them the dignity to IN THE HOUSE OF REPRESENTATIVES Duncan murder trial at the court­ lead an independent and fulfilling life­ house or water issues on the Sespe. Tuesday, May 24, 1983 style throughout their latter years.e Bob has watched the transition of the e Mr. ROWLAND. Mr. Speaker, May county from a small town, agrarian has been designated as "Older Ameri­ A COMPLETE REPORTER community to the present day, subur­ cans Month" and, therefore, I want to ban megalopolis. At the same time, he take this opportunity to honor these HON. ROBERT J. LAGOMARSINO has seen his words transformed from Americans who have contributed and, OF hot lead to cold type to electronic with our help, can continue to contrib­ blips in the composing room-his ute much to our country and society. IN THE HOUSE OF REPRESENTATIVES career spanning the most important There are presently 26 million Amer­ Tuesday, May 24, 1983 transformation in printing in the past icans over the age of 65 with another e Mr. LAGOMARSINO. Mr. Speaker, 100 years. 33 million between the ages of 50 and there are some people who discover Bob claims he will sit at his home in 65. Many of these citizens entering early in life what they like to do, and Montalvo and loaf after his retire­ their golden years are faced with the are then fortunate enough to find ment. But he has already agreed to fears of the elderly: increasing isola- somebody to pay them to do it. continue writing a twice-weekly 13624 EXTENSIONS OF REMARKS May 24, 1983 column, so I do not think we have The pontifical message invites us to "over­ ARMS CONTROL-THROUGH THE heard the last word from him yet. come the obstacles to dialogue" and points EYES OF AMBASSADOR WATSON Which is just as well. As his editor, out that " nobody should be excluded from Julius Guis, remarked: the peace effort"; therefore we feel that the moral authority of Pope John Paul II is an HON. CLAUDINE SCHNEIDER Bob Holt has been a legend in his own time. He's the kind of reporter every editor important contribution to add more will in OF RHODE ISLAND wants on his staff-possessed of a keen news favor of political efforts and against mili­ IN THE HOUSE OF REPRESENTATIVES tary efforts. sense, an able, intelligent, diligent digger of Tuesday, May 24, 1983 facts and a fast, accurate and often brilliant Lamentably, the Administration of Presi­ writer • • • • In Hiroshima, 70,000 people died instantly May 24, 1983 EXTENSIONS OF REMARKS 13625 or soon after the attack with a single primi­ cannot be stopped but if we were convinced mittee for approving this bill so expe­ tive bomb. Many others later died of dis­ that the deployment would do us no long­ ditiously. ease. The power of that bomb was equal to term good and the Soviets felt likewise, it is The purpose of H.R. 2809 is simple: 15,000 tons of TNT. The US Titan missile certainly possible to avoid deployment. carries a warhead 600 times more powerful And that brings us to the fifth point: the To provide an opportunity for the than that used on Hiroshima, and the Sovi­ importance of the negotiations which have American public-concerned citizens, ets have depolyed even larger warheads. been conducted for over 13 years by Ameri­ corporations, private organizations Second, these weapons of immense can-Soviet representatives. Significant and foundations-to support our fish destructive power have multiplied beyond agreements have been concluded: the Anti­ and wildlife conservation programs. any conceivable level necessary for deter­ Ballistic Missile Treaty, the Interim Agree­ This bill was inspired by Theodore and rence. There are about 50,000 nuclear weap­ ment on Offensive Forces, and the SALT II Francoise Gianoutsos, two avid out­ ons in the world today; the United States Treaty. Despite the fact that the U.S. gov­ door people, who generally sought to possesses 30,000, the USSR has 20,000, and ernment has declined to ratify SALT II, England, France, and China have a few both the U.S. and U.S.S.R. continue to ob­ contribute their financial resources to hundred. The US and the USSR each have serve many of its provisions. Much time has enhance the programs of the Fish and about 7,000 strategic nuclear warheads in been wasted haggling over minor points. Wildlife Service but found that there land-based silos and submarines, and the US Whether the haggling is deliberate foot­ was no vehicle to do so. has an additional 2,000 on bombers. If the dragging or real concern over secondary Modeled on the existing, successful, Soviets were deprived of all but 1 percent of issues, the basic realities argue for an National Park Foundation, this legisla­ their warheads, they could still destroy 70 urgent and determined negotiating effort. tion establishes a charitable and non­ American cities. And the same applies to US What can Americans do to profit corporation which encourages, forces. produce saner policies for dealing with the Third, the capacity of technology for im­ threat of nucler war? accepts, and administers private gifts proving these weapons is truly impressive­ The US democratic system is a marvelous to foster fish and wildlife resources. It and frightening. Both countries have de­ one for achieving solutions to political prob­ will provide a means for those con­ ployed multiple warheads on many of their lems. It works out compromises among con­ cerned with protecting endangered missiles, as many as 14 on some US missiles. flicting groups which are reasonably well species, promoting public education While some may be turned off or misled by aware of their interests and informed about about wildlife, preserving wildlife the jargon term "MIRV"

11--059 0-87-38 (Pt. 10) 13642 EXTENSIONS OF REMARKS May 24, 1983 bassador to Jamaica and the head of the Ja­ course very similar to that of the United involved in numerous political cam­ maican Ministry of Security. States." Still, there is a significant leftist paigns over the past 10 years. In addition, Cuba trained and indoctrinat­ opposition-not only in Manley's Peoples In closing, let me say that few ed a new police force comprised of Manley's National Party but in a four-year-old Marx­ supporters, the Jamaican Home Guard and ist-Leninist Party, the Workers Party of Ja­ people have successfully tried to do as a communist guerrilla-type brigade, the Bri­ maica. much for their community as Bob Bu­ gadistas. These groups were built up to the While the future remains unclear, Jamai­ torac. My wife, Lee, joins me in thank­ point where they were nearly as powerful as ca appears to be restoring real health to its ing Bob for the service he has given to the combined regular police and the Jamai­ economy and returning to its pro-West for­ the Junior Chamber of Commerce and can Defense Forces. eign policy. If these trends continue, the to the city of Long Beach. We wish Under Manley, Jamaica was collapsing. Seaga government seems likely to continue him, his wife, Elena, and their daugh­ Agricultural production dropped nearly 40 in power. Jamaica, it seems, approached the ter, Jessica, all the best in the years percent for some commodities. Sugar pro­ precipice-and then turned back.e duction fell 22 percent from 1974 to 1980. ahead.e The banana crop declined 78 percent. Coffee dropped to an all-time low. TRIBUTE TO ROBERT L. BU­ Finally, Manley was forced to call an elec­ TORAC, OUTGOING PRESIDENT CENTENNIAL OF THE tion in October 1980-18 months before he OF THE LONG BEACH JUNIOR BROOKLYN BRIDGE was required by law to do so. The pro-U.S., CHAMBER OF COMMERCE pro-free enterprise Jamaica Labor Party won an overwhelming victory-winning 51 HON.GLENNM.ANDERSON HON. TED WEISS of the 60 seats in Parliament. OF NEW YORK Now, in 1983, Jamaica's economy is slowly OF CALIFORNIA bouncing back. Under Prime Minister IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Edward Seaga, tourism, traditionally the is­ Tuesday, May 24, 1983 Tuesday, May 24, 1983 land's No. 2 money earner loyee 19th century buildings on both banks Washington to receive the American Friend- who took his respons1b1ht1es seriously. of the East River. ship Medal in a White House ceremony. From August 1978 to August 1981, The method used to construct those President Reagan said that Seaga's success Bob was executive director of the towers had only recently been devel­ in reviving Jamaica's economy and political Committee of 300 of the Long Beach oped in Europe. Huge timber boxes system is an example to other Caribbean na- Area Chamber of Commerce where he called caissons were floated into the tions tha~ cai:>italism and respect for ba.:>ic managed and directed a vol~nteer or­ water to serve as foundations for the human rights open the way to prosperity ganization in setting up the annual and peace. . masonry. As the towers were con­ "Before Prime Minister Seaga there was Grand Prix of Long Beach.. He has structed, the caissons gradually sank violence and lawlessness," Reagan said. also served as secretary and director of down into the riverbed. Water was "Now there's peace and growing respect for the Long Beach Junior Chamber of forced out of the caissons by com­ the law. Before, there was despair about the Commerce, and was a director of the pressed air, leaving compartments future. Now, there is hope and expectation Long Beach Area Chamber of Com­ where workers could excavate into the of better times ahead. In the recent past, merce from 1982 to 1983. river sediment. the economy was . de~li1:1ing. ~nd.. now, Presently he is general manager of This method, while innovative and through free enterpris~. it is growin.g. Sonitrol of Long Beach where he su- One of Seaga's maJor accomphshments . . . • effective, was also treacherous. Hun­ was to restore Jamaica's credit rating. He perv~ses. the msta~lat1on, sales, and dreds of workers contracted a strange has renegotiated a loan with the IMF and momtormg of security systems. malady known as caisson disease from has renegotiated old loans with a consorti- Bob will be celebrating 8 years of working in the high-pressure atmos­ um of eight commercial banks headed by Ci- happy matrimony with his lovely wife phere. One victim was Washington ticorp of New York. He has also arranged Elena this September. He will also be Roehling, the man who had assumed for loans from 11 Western governments. celebrating the third birthday of his the job of chief engineer from his The st~ategy is working. Expo~ts are up by daughter, Jessica. father, John Roehling, the designer of a?proximately 10 percent and imports ha:ve Bob was a member of the California the bridge. The elder Roebling, a bril­ risen about 25 percent. Investments have in- . . . creased dramatically. Crime has decreased. delegati~n t? the Democ~at1c Nat10nal liant German immigrant, had died of Problems, of course, remain. But seaga is Convention m 1972 .. and .1s currently .a lockjaw after refusing amputation of optimistic about the future. He sees Jamai- member of the Cahforma Democratic his foot, injured while he was survey­ ca as following a "political and economic State Central Committee. He has been ing for the bridge. May 24, 1983 EXTENSIONS OF REMARKS 13643 The remarkable saga of the Brook­ in which it has been alleged that in­ Gerald P. Carmen, Administrator of the lyn Bridge continued under the guid­ stances of criminal wrongdoing, abuse General Services Administration, failed to ance of Emily, wife of the junior Roe­ of power and privilege, and unethical list a $425,000 SBA low-interest loan on his finanical disclosure form. He is alleged to bling. For more than a decade, while behavior of people in high places have have placed family and friends in govern­ Washington Roebling lay bedridden occurred. In listing these individuals, I ment jobs and to have engineered a contro­ though mentally active, she transmit­ am not suggesting that anyone is versial land deal that would have given gov­ ted directions from her husband to the guilty of any illegal act. However, the ernment property to Marriott Corporation work crew and supervised the con­ variety of misdeeds described suggest at a favorable price. struction, quickly learning the engi­ that a stronger ethics law is needed. William J. Casey, Director of the Central neering and mathematics required for But legislation can not, and should Intelligence Agency, failed to list more than $250,000 in investments, $500,000 in liabil­ the work. not, be expected to address each of ities, names of 70 legal clients, four civil On May 24, 1883, she also supervised these instances. What is needed, in ad­ suits against him, and a number of corpora­ the inaugural fireworks and festivities, dition to a strong ethics law, is an ad­ tions and foundations on whose boards he riding in the first carriage to cross the ministration dedicated to a Govern­ served on his financial disclosure forms. bridge. The centennial celebration be­ ment with the highest standards of in­ Prior to becoming CIA Director, Mr. Casey ginning today is a tribute to the re­ tegrity. failed to file as a foreign agent for Indone­ markable history, workmanship, and As the following list shows, ethical sia. Mr. Casey had to pay punitive damages beauty of the bridge. The festivities conduct has not been an important in a 1959 plagarism suit. While CIA Direc­ will include a grand display of fire­ tor, a special screening arrangement was es­ consideration in the appointments of tablished for Mr. Casey which allows him to works set to music, a sound and light the Reagan administration: buy or sell stocks at his discretion. show, displays at museums and galler­ Richard V. Allen, National Security Advis­ Michael J . Connolly, EEOC General ies in Brooklyn, as well as at the er, accepted $1 ,000 and three watches from Counsel, allegedly conspired with his broth­ Smithsonian and many other activi­ a Japanese magazine that had been granted er to end an EEOC enforcement action ties. an interview with Nancy Reagan. In addi­ against a client represented by his brother. This extraordinary bridge continues tion, after becoming National Security Ad­ He dramatically cut the number of EEOC to capture the American imagination, viser, Mr. Allen continued to have contact actions against employers. He tried to insti­ serving as both inspiration and symbol with his former clients at the same time he tute a new policy of discouraging lawsuits in was receiving funds for the sale of his con­ a number of areas including age discrimina­ of American dedication and vision. sulting business. Mr. Allen resigned. tion, sexual harassment, and equal pay for I am proud to say, Mr. Speaker, that Frederic N. Andre, Interstate Commerce comparable work. By so doing, he attempted the Manhattan portion of the ·New Commissioner, said that kickbacks in the to sidestep established Commission policy­ York Brooklyn Bridge and its ap­ trucking industry should be viewed as just making channels. Mr. Connolly resigned. proaches are located within the 17th .. discounts" or "rebates. ., He said that the Louis Cordia, Deputy Director of the EPA Congressional District of New York Commission should not worry about bribes Office of Federal Activities, put together, which I have the honor to represent.• in the trucking business because they are for the transition team, a vitriolic hit list of .. one of the clearest instances of the free employees and contractors who were to be market at work." He also stated that truck­ removed because of their interest in envi­ ETHICS IN GOVERNMENT ers should be allowed to conspire to fix ronmental protection. Mr. Cordia resigned. prices and that he saw nothing wrong with Robert D'Agostino, was to be nominated convicted felons running a trucking compa­ to be General Counsel of the Office of Per­ HON. PATRICIA SCHROEDER ny while in prison. sonnel Management and later became an of­ OF COLORADO Malcolm Baldrige, Secretary of Com­ ficial with the Justice Department Civil IN THE HOUSE OF REPRESENTATIVES merce, spent $15,272 on personal office fur­ Rights Division. He circulated a memo sug­ nishings. gesting that blacks are more likely to be dis­ Tuesday, May 24, 1983 William Bell, nominated to head the ruptive in classrooms. Mr. D'Agostino re­ e Mrs. SCHROEDER. Mr. Speaker, Equal Employment Opportunity Commis­ signed. However, he then returned as a con­ Congress devoted a great deal of time sion, was shown to have no qualifications sultant. and energy to the passage of the for the job and a spotty record of employ­ Michael Deaver, Deputy Chief of Staff ment. His one-man employment agency and Assistant to the President, used his Ethics in Government Act in 1978. We failed to find jobs for clients during the pre­ White House celebrity status to promote his passed that legislation to eliminate vious year. His nomination was withdrawn. diet book and negotiate a lucrative contract conflicts of interest, require public dis­ Donald Bogard, President of the Legal on its sale. He arranged to circumvent the closure of financial interests, and Services Corporation, received a contract outside-earnings limitation by deferring insure appointment of a special pros­ negotiated by his friend and temporary LSC ·until after leaving office the bulk of the ecutor when high officials were the Chairman William F . Harvey that included money he will earn while in office. subject of allegations of wrongdoing. one year's severance pay if fired, member­ Donald Devine, Director of Office of Per­ In drafting that legislation, we tried to ship in a private club of his choosing, and sonnel Management, has been chauffered to two free trips each month to his home in In­ and from work in a government car. strike a balance between the need for dianapolis. Raymond J. Donovan, Secretary of Labor, a Government of high integrity and Anne Gorsuch Burford, Environmental was the subject of repeated allegation of in­ the fear that we would lose high qual­ Protection Agency Administ rator, made de­ volvement in union corruption and of ties to ity individuals if we made the restric­ cisions based on political considerations. For organized crime. Although a Special Pros­ tions on Government service too oner­ example, cleanups of hazardous waste sites ecutor found evidence to support these alle­ ous. After 4 years of watching this act were either sped up or delayed to help Re­ gations, he did not find enough to seek an in operation, I am convinced that we publicans in 1982 elections. In addition, she indictment. sacrificed too much to our concerns of knew for a year of the damaging evidence Steven J. Durham, Denver EPA regional against her friend and influential aide, Administrator, allegedly ignored federal en­ scaring away prospective public serv­ James Sanderson, yet failed to fire him or vironmental mandates including not order­ ants. There are no documented cases take other action against him. Under her ing legally required environmental impact of anyone refusing Government serv­ auspices, EPA kept lists of the political lean­ studies on some projects. He allegedly used ice because of the requirements of the ings of agency employees. Mrs. Burford re­ undue political influence in hiring regional Ethics in Government Act. But there signed. staff and filled key jobs with friends and as­ are, for sure, dozens of cases of scan­ Joseph W. Canzeri, Executive Assistant to sociates of prominent Colorado Republi­ dalous activities within the Reagan ad­ White House Deputy Chief of Staff Deaver, cans. He is accused of reversing staff envi­ ministration that have gone on while accepted below-market loans for his ronmental findings and of failing to push $380,000 Georgetown home from Laurence for Federal cleanups of identified toxic the Office of Government Ethics stood Rockefeller and California developer waste sites. Mr. Durham has resigned effec­ on the sidelines. Donald Koll. In addition, he double-billed tive June 25, 1983. I have put together a list of some of his travel expenses to the White House and Guy W. Fiske, Deputy Secretary of Com­ these cases involving individuals ap­ the Republican National Committee. Mr. merce, allegedly was negotiating the sale of pointed by the Reagan administration Canzeri resigned. the weather satellites to COMSAT at the 13644 EXTENSIONS OF REMARKS May 24, 1983 same time he was negotiating a high level with the Department, Mr. Hovde encour­ Sanderson investigation including the job for himself with the same company. Mr. aged senior employees to accept free travel names of the EPA employees who had made Fiske resigned. from trade associations regardless of wheth­ damaging statements about Sanderson. Mr. Robert Funkhouser. EPA Director of er they were regulated by HUD or if mem­ Novick was fired from EPA but now serves International Activities, allegedly helped a bers of the association had business dealings as Special Assistant to Department of Dow Chemical Company representative with the Department. Mr. Hovde had trips Energy Investigator General James Rich­ exert undue influence on the U.S. position to Puerto Rico and Italy paid for by build­ ard. in international negotiations to regulate ers and realtors. William Olsen, Board Member of the toxic chemical trade. Mr. Funkhouser re­ Max Hugel, CIA Chief of Clandestine Op­ Legal Services Corporation, collected signed. erations, allegedly engaged in fraudulent $19,721 in consulting fees from the govern­ Rudolph W. Giuliani, Associate Attorney stock dealings before taking office. He is a ment in 1982. General, was allegedly involved in a 1976 close personal friend of CIA Director Casey. Thomas W. Pauken, Director of ACTION, public corruption case. Mr. Hugel resigned. allegedly developed a hit list on the political Grace Commission, the President's Pri­ Michael Karem, Deputy Assistant Secre­ affiliations of VISTA employees. He has vate Sector Survey on Cost Control, was set tary of HUD for Multifamily Housing, alleg­ also misused Schedule B hiring authorities up in such a way as to skirt the Federal Ad­ edly gave favored treatment to select devel­ to bring in a large number of Reagan cam­ visory Committee Act. This scheme was de­ opers doing business with HUD. Mr. Karem paign workers. veloped to protect a group of private-sector resigned. Clarence M. Pendleton, Jr., Chairman of advisers from the Ethics in Government Rita Lavelle, EPA Head of Toxic Waste Civil Rights Commission, was formerly the Act. Although the Commission does not di­ Cleanup, took expensive lunches from firms President of the San Diego Urban League. vulge the names of task force members, it is involved in regulatory matters before EPA. They are now suing him for "fraud, breach reported that many were assigned to look She showed favoritism to certain companies of contract, intent to deceive and defraud, into the operations of agencies that regulate and privately discussed pending EPA en­ and misuse of funds for personal gain." their businesses. For example, Clifton B. forcement cases with company officials. She Among other things, he allegedly side­ Cox, Chairman of Armour and Company, a failed to remove herself from all agency ac­ tracked government and charity funds meat-packing company with many dealings tions relating to her former employer, Aero­ meant for minority programs into narrow with the Department of Agriculture, worked jet General Corporation. Ms. Lavelle was projects benefiting a favored few. He misled on Department of Agriculture "problems." fired. the Senate Judiciary Committee during his Roger Batchelor, Jr., Vice President of Dia­ Dennis E. LeBlanc, Associate Administra­ confirmation hearings about $50,000 he re­ mond Shamrock, a chemical producer, tor of the Commerce Department's National ceived for expenses on which he paid no helped root out troublesome regulations at Telecommunications and Information Ad­ taxes. EPA ministration, is an old friend of President Nancy Reagan, First Lady, accepted fancy Rev. Sam Hart, nominated as chairman of Reagan who, while holding his $58,500 Com­ clothes, as gifts, from American designers. the U.S. Civil Rights Commission, failed to merce Department job, cuts wood and Michael Reagan, son of the President, sent pay local taxes and defaulted on federal cleans stables at the President's ranch. business solicitation letters to U.S. military loans. Rev. Hart also made statements of­ John F. Lehman, Secretary of the Navy, bases invoking the name of his father on fensive to the groups whose interests are maintained a connection with a firm despite behalf of a private military equipment sup­ supposed to be protected by the Commis­ his promise to divest himself of it complete­ plier. He was also accused of felony viola­ sion. His nomination was withdrawn. ly after taking office because of its work ad­ tions of California securities laws in connec­ William F . Harvey, temporary Chairman vising defense contractors. tion with an investigation of an allegedly of the Board of the Legal Services Corpora­ William E. Mccann, nominated as U.S. fraudulent stock scheme. tion, collected $25,028 in consulting fees for Ambassador to Ireland, was allegedly in­ Thomas C. Reed, Special Assistant to 11 months in 1982. He charged the govern­ volved in shady business deals and had con­ President for National Security Affairs, was ment at the rate of $221 / day for the time it nections with mobsters and racketeers. Mr. appointed despite the fact that he is the took him to drive from his home in Indian­ McCann's nomination was withdrawn. subject of a grand jury criminal investiga­ apolis to work in Washington, D.C. because John McElderry, Denver Regional Direc­ tion for possible perjury, falsifying docu­ he didn't like to fly. He would charge $442 tor of Health and Human Services, allegedly ments, and insider trading stemming from for one way, 615 miles of driving. He used his Federal position to promote and complicated stock dealings and involving charged $147.05 for taxi bills for five days in sell Amway products. Mr. McElderry re­ windfall profits. The NSC and the FBI both Washington, D.C. He billed the government signed. knew of the investigation and yet still gave $194.22 for postal expenses for a 2 day W. Clifton Miller, Assistant to EPA Ad­ him a top security clearance. When this board meeting. ministrator Burford, compiled a hit list of became public, the White House announced Arthur Hull Hayes, Jr., Food and Drug Senior Executive Service employees. using that Mr. Reed would leave the NSC when Administration Commissioner, received fees colored push pins to note political loyalties. he finished his MX assignment. However, and travel expenses from outside groups he He was later hired for the number 3 EPA he remains a member of the Defense Sci­ spoke to and sought reimbursement from position in Denver but this is held up pend­ ence Board, a high level Pentagon brain his agency for the same expenses. ing an investigation of his hit lists, as well trust on weapons technology. William S. Heffelfinger, Assistant Secre­ as his travel vouchers. Alfred S. Regnery, nominated as and tary of Energy, was a career civil servant George Nesterczuk, Office of Personnel acting as Director of the Justice Depart­ who was accused of falsifying his resume, Management Associate Director for Work­ ment Office of Juvenile Justice and Delin­ threatening contractors and federal work­ force Effectiveness and Development, left quency Prevention, gave approval to a grant ers, deceiving federal investigators, destroy­ his job in the summer of 1982 to manage proposal for a book on juvenile justice ing government property, violating merit the Maryland Senate campaign of Lawrence which included a provision under which he, system protection and privacy laws. Despite Hogan. After Hogan lost, Nesterczuk was Regnery, would be paid $1 ,000 to write a this background, he was nominated to be reappointed to his old job at OPM, which chapter. Assistant Secretary of Energy for Adminis­ had been held open pending his return, a Armand "Rock" Reiser, Counselor to Sec­ tration. clear violation of the Hatch Act. retary of Department of Energy, proposed a John Hernandez, Acting EPA Administra­ Robert P. Nimmo, Administrator of the plan to send Department "operatives" in tor, was charged with allowing Dow Chemi­ Veterans Administration, spent $54,183 re­ blue jeans to infiltrate a consumer group cal Company to "edit" a report critical of decorating his office and sent his old furni­ meeting in Denver. He also failed to disclose them. Mr. Hernandez was forced to resign ture to the office of Mary Nimmo, a spokes­ $106,840 in earnings from five energy-relat­ but is now working as a paid consultant for person for Commerce Department and his ed companies on financial disclosure forms. the Department of Energy. daughter. He leased a big Buick as his offi­ Mr. Reiser resigned. John Horton, EPA Assistant Administra­ cial car although the rules said he should Isidoro Rodriquez, Director of Depart­ tor for Administration, allegedly used gov­ have a compact model. He used his VA ment of Agriculture Minority Affairs, wrote ernment employees and telephones for his chauffer to take him to and from work and a memorandum for the Secretary suggesting private business. Mr. Horton resigned. misused chartered aircraft and first class air that the Department take the lead in gut­ Donald I. Hovde, Undersecretary of De­ travel. Mr. Nimmo resigned. ting Federal civil rights enforcement laws partment of Housing and Urban Develop­ Matthew N. Novick, Investigator General because blacks voted Democratic. Prior to ment, made nine business trips to his home of EPA, allegedly used EPA workers to con­ his appointment, Mr. Rodriquez was found town of Madison, Wisconsin in 1982. Al­ duct personal business for him unrelated to to have collected unemployment benefits at though HUD policy prevents employees government work. He failed to maintain the the same time he was employed as a con­ from accepting free trips from specific com­ independence of the IG office by briefing sultant with the government of the District panies that are regulated by or do business Burford on all confidential details of the of Columbia. Mr. Rodriquez was fired. May 24, 1983 EXTENSIONS OF REMARKS 13645 James W. Sanderson, Advisor to EPA Ad­ of arrogance, abuse, and violation of School Chess Tournament in Pulaski, Va., ministrator Burford and intended nominee the public trust. While it is incumbent this spring. "Everyone wondered why this for the #3 EPA position, a allegedly partici­ on us to strengthen the Ethics in Gov­ group of ghetto kids would make an 11-hour pated in sensitive agency decisions at the trip to play a chess stronghold." same time he represented major corpora­ ernment Act, it is much more impor­ tant for the American people to raise The students from School 27 left that tions that benefited from those decisions. stronghold with one loss, one draw, 22 victo­ He allegedly told the Denver Regional Ad­ their voices and demand a Govern­ ries and the championship. minstrator to grant a special benefit to a ment grounded in basic decency and client of his, and told a toxic waste dumping the appointment of public servants HUNTER COLLEGE'S SCHOOL BEATEN firm he represented about a forthcoming re­ who know and care enough to conduct The national championship came harder. laxation in regulations dealing with toxic themselves in an ethical and princi­ After leading for all eight rounds, School waste dumping. Sanderson resigned and he pled manner.e 27's team won a squeaker May 1, beating is now under Justice Department investiga­ New York City's Hunter College Elementa­ tion. ry School by half a point. E. S. Savas, Assistant Secretary of HUD SCHOOL 27 DESERVES A WHITE Another New York team, from James for Policy Development and Research, HOUSE RECEPTION Madison High School in Brooklyn, was luck­ charged the government for 20 trips to New ier, winning the United States High School York in 10 months spending each weekend Chess Team Championship in San Jose, at his home in nearby New Jersey. He billed HON. JACK F. KEMP Calif. the government more than $14,000 for offi­ OF NEW YORK School 27 is in a downtown area of run­ cial trips in 1982 including 2 trips to IN THE HOUSE OF REPRESENTATIVES down homes and housing projects. " It was London, 2 trips to Paris, and one trip to Tuesday, May 24, 1983 the only sport here," Derrick Brownie, 12 Athens. He allegedly had HUD employees years old, said in recalling why he had working on government time proofreading •Mr. KEMP. Mr. Speaker, I would begun to play chess. and typing his book. There are allegations like to bring to your attention and Steven Garrett, 12, another member of that he also directed HUD employees to the chess team, initially encountered some help research other articles he published that of my colleagues an inspirational and enlightening story of a fifth-grade resistance from his friends and family, "es­ privately in professional journals. Before pecially my grandmother." his appointment, he received $33,000 in con­ chess team that last week captured sulting fees from Ecodata, Inc., a company the National Elementary School Chess "She said I had to get my mind off chess and start playing some active sports," he which was later awarded a $495,000 HUD Championship in Memphis, Tenn. said. contract by a review panel on which Mr. This particular chess team and its ac­ Savas served as a non voting member. Mr. complishment deserves not only our "MASTERS OF DISASTER " Savas has been on paid administrative leave congratulations, but also our attention But Mr. Cotter, with his regimen of after­ since January 17, 1983, pending t he outcome because this group of youngsters was school practice and Soviet chess magazines, of the investigation into his affairs. prevailed. William French Smith, Attorney General, not from a typical upper-middle income, or even middle-inconie neigh­ No sooner had the team members learned took impermissable tax write-offs after he some basics than he entered them in tour­ was nominated for office. He also accepted borhood, but from an inner-city and naments. Typically, they would win one $50,000 severance from a company on whose urban-poor neighborhood in Indianap­ game and lose 20. Their dismal performance board of directors he had served. He later olis. in those days prompted the nickname "Mas­ severely limited his tax write-off and re­ Many of us too frequently are sur­ ters of Disaster." The team improved, but turned the severance payment. prised when we hear stories like this. the name stuck. Nancy Harvey Steorts, Chairperson of the "They wouldn't quit," said Mr. Cotter, Consumer Product Safety Commission, Not for any good reason but simply be­ spent $10,000 on her office redecorations. cause too many have accepted the elit­ who battled a meager school budget to get She told her chauffeur to wear a uniform and hat. When she not expect too much from our poor in ment fees. "A certain street savvy and some was advised that this was not proper, she the way of achievements. Instead, over innate competitive instincts made them modified her request and asked that he the years, we have been told we should keep coming back." wear a suit. When he said that he could not As Corey Scruggs, 12, put it, "They used continue to lower our expectations of to treat me dirt, but soon enough it paid afford one, two agency officials chipped in them and they of themselves. to buy him one. She allegedly misused her off." chauffeur by having him drive her daughter I hope that this story will wake some Today, four members of the team are to see her friends. up to the reality of the abilities and ranked in the top 50 players under the age James Watt, Secretary of Interior, mis­ desires for achievement of our inner­ of 13. used government funds to pay for two pri­ city youngsters and hopefully rein­ The school trophy case, which had held a vate parties at the Custis-Lee Mansion, force the efforts we must make to few certificates of this and that, began to which is operated by the National Park insure true equality of opportunity for fill with gleaming chess trophies. Before the Service. When GAO ruled he had to reim­ all of our children and help each child team left for the national tournament, Indi­ burse the government for the cost of the be all that he or she can be. anapolis Mayor William H. Hudnut, a Phi parties, he had the Republican National Beta Kappa graduate of Princeton, came to Committee pick up the tab. I would hope the President would play an exhibition match before the school Mrs. Caspar W. Weinberger, wife of the invite them to a White House recep­ and found himself checkmated in 40 min­ Secretary of Defense, used the Pentagon's tion and give them the attention that utes. executive motor pool and its drivers for per- champions in sports receive. School 27 "He's not a bad player," Mr. Cotter said, . sonal transportation around Washington, is an inspiration to us all. This is a ter­ ''but he was losing on the fourth move." including trips to and from a library, medi­ rific story, Mr. Speaker, and I hope ev­ A chess master visiting the state made a cal facilities, airports, and various social eryone reads it. detour to play the 11-member team simulta­ functions. neously and offer pointers. Charles Z. Wick, Head of the United [From the New York Times, May 10, 19831 States Information Agency, gave high UNLIKELY TEAM CAPTURES CHESS TITLE TEAM IS STAYING CALM salary jobs and plum overseas posts to the INDIANAPOLIS, May 9.-When Robert The team has remained unruffled children and friends of top Administration Cotter, a fifth-grade science teacher, tried through it all. officials. More than 150 political appointees to organize a chess club at his inner-city "They don't comprehend the magnitude have been placed on the payroll of USIA school three years ago, none of the students of the national championship," Mr. Cotter since Reagan took office. knew a pawn from a king. said in a tone of amazement. "They think This list fails in its completeness, yet Last week, Mr. Cotter's chess team re­ it's a chess match like all the others." turned from Memphis with the National El­ Four team members said most would be it serves to underscore the pervasive­ ementary School Chess championship. entering seventh grade and junior high ness of illegal, inethical, and otherwise " Chess has that image of being an elitist chess competition next year anyway. Chess, questionable behavior within the game," Mr. Cotter said, recalling with they agreed, might help pay a few small Reagan administration. It is an outra­ amusement the surprise his team generated bills in years to come, but most plan on ca­ geous and disheartening compendium at the United States Southern Elementary reers in law or maybe business. 13646 EXTENSIONS OF REMARKS May 24, 1983 Derrick Brownie, stocky beneath his Afro, DYMALLY'S TESTIMONY ON MI­ dum which he knew was a rumor. He, in said he wanted to play pro football. "That," CHAEL FRANCHETTI'S CONFIR­ turn, gave it to Mr. Sheldon Lytton, then an he said, "is the way to make real money."e MATION employee of the Evelle Younger Gubernato­ rial campaign staff. Mr. Lytton leaked the HON. MERVYN M. DYMALLY information to Bill Stout, commentator for REDUCE THE FEDERAL DEFICIT KNXT CBS T.V., in Los Angeles. Somehow, OF CALIFORNIA the memo indicating that the information IN THE HOUSE OF REPRESENTATIVES was based on hearsay and rumor was with­ HON. CARROLL HUBBARD, JR. held making it appear that an indictment Tuesday, May 24, 1983 was in fact underway. For the record, Bill OF KENTUCKY e Mr. DYMALLY. Mr. Speaker, re­ Stout's wife was also an employee of the IN THE HOUSE OF REPRESENTATIVES cently, I had the occasion to testify Evelle Younger Gubernatorial campaign or­ before the California Senate Rules ganization at the time the memo was Tuesday, May 24, 1983 Committee on the confirmation of Mi­ leaked. Mr. HUBBARD. Mr. Speaker, I Stout had announced on television that I e chael Franchetti for the position of was to be indicted. Mr. Mike Curb, a Repub­ have received a timely letter from a California director of finance. lican candidate for Lieutenant Governor, re­ fellow Kentuckian, Mr. William N. My testimony follows: lying on that T.V. announcement, accused Lucas, of Louisville, Ky. Mr. Lucas TESTIMONY OF REPRESENTATIVE MERVYN M. me of being a criminal on the verge of in­ asks Congress to get its act together DYMALLY BEFORE THE CALIFORNIA SENATE dictment. Not only did accusation on crimi­ and do something constructive for the COMMITTEE ON RULES RELATIVE TO MI­ nal wrongdoing contribute to my defeat in taxpayers of America. As we are await­ CHAEL FRANCHETTI the Lieutenant Governor's campaign, it also Mr. Chairman, Members of the Senate led to approximately two years of investiga­ ing the House-Senate conference com­ Committee on Rules, I appreciate this op­ tion and harassment of my family, my mittee members to work out an accept­ portunity to appear before your distin­ friends and I by the FBI and the Depart­ able compromise budget for fiscal year guished Committee to provide testimony ment of Justice. No evidence of criminal 1984, I believe my colleagues will be in­ relative to the confirmation of Governor wrongdoing was ever found through those terested in the writer's excellent com­ Deukmejian's appointment of Mr. Michael years of investigation, but the suffering Franchetti as Director of the Department of they brought to me and my family and ments. His letter follows: Finance. friends cannot be adequately expressed in APRIL 6, 1983. I am Mervyn M. Dymally, U.S. Represent­ words. I cannot overemphasize the irrevoca­ Hon. CARROLL HUBBARD, Jr.. ative of the 31st District, Los Angeles ble damage that was visited upon innocent U.S. House of Representatives, County, in the House of Representatives. people as a result of this witch hunt-aided, Washington, D. C. By way of further clarification, Mr. Chair­ I regret to say, by certain segments of the DEAR MR. HUBBARD: It is extremely dis­ man, I must state, for the record, that I media. turbing to read that the federal deficit for have more than a casual inte1 est in this con­ It is evident that the release of a confiden­ the first five months of the current fiscal firmation proceeding. In determining tial inter-office memorandum to the news year has already exceeded the twelve-month whether Michael Franchetti should be the media for the purpose of political gain is not record deficit of $110 billion set in 1982. Director of Finance, I am extremely con­ only highly unprofessional but unethical on Just when the economy is beginning to cerned that this Committee, and indeed, the the part of a public official. Mr. Franchet­ show some growth following the worst re­ Senate of the State of California, thorough­ ti's conduct was also a violation of policy in cession since the 1930 Depression, the pros­ ly examine and reflect upon the fitness. eth­ the Attorney General's office, for which he pect of continung federal deficits is begin­ ical conduct and professional posture of Mr. was reprimanded by the Attorney General. ning to cause higher interest rates which Franchetti. It is my sincere belief that the More importantly, the California Govern­ will undoubtedly choke off any . further re­ Committee should examim· whether Mr. ment Code provides that conduct such as vival in the economy. Franchetti possesses the moral or profes­ Mr. Franchetti's is felonious. California It is about time for Congress to come to sional prerequisites to serve the people of Government Code Section 6200 provides in grips with this extremely serious and ongo­ California as Director of Finance. pertinent part: "Every officer having the After considerable reflection on this custody of any record . .. filed or deposited ing problem. The House proposes to in­ matter, and on the advice of several individ­ in any public office, or placed in his hands crease taxes in order to spend more. The uals, I have felt compelled to come forward for any purpose, who is gulity proposal to eliminate the tax indexing pro­ and present, for the record and review of of ... defacing, altering, or visions passed in 1981 will curtail the pres­ this Committee, a series of events in which falsifying ... the whole or any part of such sure on Congress to control spending and to Mr. Franchetti's involvement and participa­ record ... or permits any other person to take proper steps to combat inflation. The tion can be described as unprofessional, un­ do so, is punishable by imprisonment" for most serious problems that must be at­ ethical, inappropriate and bordering on, if up to four years. Cal. Gov. Code Section tacked are the remaining entitlement pro­ not in fact, criminal. 6200, West. grams that have grown and grown over the With the patience and forbearance of the Although prosecution is at the discretion years with no controls. In addition, defense Committee I will attempt to reconstruct to of the Federal Attorney General's office spending needs to be handled more effectve­ the best of my knowledge these events that and only the 4th Circuit Court has ruled ly with less waste while still spending at the have caused several individuals to question that such Federal statutes apply in state proper level to keep America strong. Mr. Franchetti's fitness for appointive elections, it appears that Mr. Franchetti's Why can't Congress get its act together office. actions may have violated two and possibly and do something constructive for the tax­ Late in 1978, Los Angeles Times reporter, even three provisions of the U.S. Code. In payers of this country? A bipartisan com­ Robert Fairbanks, heard or invented a pertinent part, Title 18 U.S. Code Anno­ mittee to study and recommend solutions to rumor that my then campaign finance tated Section 245, provides that "Whoever, the budget deficit problem would have a Chairman Hugh Pike and I were to be in­ whether or not acting under color of law, by good chance of succeeding, as did the Social dicted. I was then Lieutenant Governor of threat of force .. . willfully intimidates or California engaged in a reelection campaign. interferes with . . . any person because he Security Bipartisan Committee. I urge you Fairbanks, in an attempt to verify the is . . . campaigning as a candidate for elec­ to get to work on solving the deficit problem rumor contacted Kenneth O'Farrell in the tive office . . . shall be fined not more as this the greatest obstacle to renewed eco­ Attorney General's Office. O'Farrell went than $1,000, or imprisoned not more than nomic expansion and prosperity in this one step further and wrote a confidential one year, or both ... "West. In this case, it country. The answer is not to balance the memorandum recounting that he had re­ took no more than the threat that the force budget on the backs of the taxpayers by ceived information about this alleged im­ of law was to be brought against me to bring raising taxes so that government can spend pending indictment. A note to the memo­ about my defeat in the Lieutenat Gover­ more money. The people of Kentucky will randum stated that the information was nor's race. support you 100 percent if you will work based on hearsay and rumor. It is my under­ Section 372 of Title 18 of the U.S. Code toward fiscal responsibility in running our standing that it was standard operating pro­ would also seem to apply in this instance. In government. cedure in the Attorney General's office at pertinent part it reads, " If two or more per­ Sincerely yours, that time to document such a contact sons in any State ... conspire to prevent, WILLIAM N. LUCAS, through a memorandum. by . . . threat any person from . . . holding Louisville, Ky.e Michael Franchetti as a Deputy Attorney any office ... under the United General obtained a copy of this memoran- States ... each of such persons shall be May 24, 1983 EXTENSIONS OF REMARKS 13647 fined not more than $5,000 or imprisoned Mr. Chairman, permit me to digress for a It is my recommendation to this Commit­ not more than six years, or both." moment. At one time I was informed by the tee that it carefully examine the depositions Finally, Title 42, Section 1983 of the U.S. Chief Deputy Attorney General in Mr. and other relevant information which I Code Annotated permits civil action in the Younger's administration that seldom, if have mentioned. To confirm Mr. Franchetti case where a " ... person who, under color ever, does the Attorney General's office without having reviewed this material of any statute, custom, or usage of any seek any indictment regarding felonies on would be to conduct a less than thorough State ... subjects ... to the deprivation questionable information. The usual proce­ investigation, considering that his appoint­ of any rights, privileges, or immunities se­ dure is to refer the matter to the District ive position is perhaps the most important cured by the Constitution and laws ..." Attorney of the county where the violation such position in the State of California. Any person acting in this way " .. . shall be is alleged to have taken place. In summary, Mr. Chairmam, I wish to liable to the party injured in an action at In the 20 years that I have been in and state for the record, that my appearance law, suit in equity, or other proper proceed­ out of Sacramento I don't recall not a single before you today is not personally motivat­ ing for redress." West. case, expect the one relating to me. ed. Although I have been personally victim­ It was not a simple matter to obtain a If I may, at this time I would like to sum­ ized by Mr. Franchetti's actions, I do not copy of the memorandum which brought marize for the record the points I have bear him personal antagonism or malice. about the problems to which I referred ear­ made: What is most important Mr. Chairman, is lier. Eventually, however, Mr. Hugh Pike's <1 > During his tenure as Deputy Attorney that the people of California be served by attorney was successful in obtaining a copy General, Mr. Franchetti may have commit­ individuals of the highest degree of integri­ of the memorandum. When Mr. Franchetti ted a felony by violating Section 6200 of the ty and professionalism. Unfortunately, the learned that Mr. Pike's attorneys had the California Government Code with prohibits Governor's nominee has demonstrated in memo, he struck a deal with the support of falsifying printed information. There is the past that he cannot meet those high the Attorney General's office, which al­ reason to believe his actions may also have standards. lowed him to delay his admission of guilt violated several Federal statutes as well. I thank you for allowing me to provide until the completion of the general election <2> He violated department policy in the testimony before your Committee today, in November 1982 between then-Attorney Attorney Generars office by leaking confi­ and I stand ready to answer any questions General George Deukmajian and Mayor dential information to the media. you and the members may have.e Tom Bradley. <3> He used his influence during the But Mr. Franchetti's vendetta did not end taking of depositions to suppress the critical with leaking false and damaging informa­ information contained in the memorandum HEALTH CARE NEEDS OF tion about me. Again, using questionable until he was certain that the statute of limi­ WOMEN VETERANS GET AT­ and unreliable information from an unreli­ tation had expired. TENTION able source, Mr. Franchetti ordered a raid <4> He misrepresented facts when he on my attorney's office in an attempt to in­ denied that he had attempted to have me vestigate a rumor that I had solicited bribe indicted based on highly unreliable evidence HON. GERALDINE A. FERRARO from a church group in L.A. County. Noth­ offered by a highly unreliable informant. ing was found in the raid; undaunted, (5) He used political influer.ce to work out OF NEW YORK though, Mr. Franchetti convinced his new a deal to suppress public knowledge of his IN THE HOUSE OF REPRESENTATIVES boss, then-Attorney General Deukmejian guilt. that a grand jury investigation of me should <6> He used the power of a public office to Tuesday, May 24, 1983 be empaneled in San Diego County. The give credibility to defamatory information e Ms. FERRARO. Mr. Speaker, yes­ purpose of the investigation was to pursue which he himself knew to be false. terday this House passed H.R. 2920, an indictment against me for the alleged During the 1978 campaign for Lieutenant the Veterans' Administration Health bribe solicitation committed in L.A., not San Governor, Mike Curb accused me of being a Diego County. criminal. When he became Lieutenant Gov­ Programs Amendments of 1983. While Mr. Hugh Pike had brought a libel suit ernor, he had access to depositions which there were many important provisions against CBS and Mr. Franchetti was princi­ made my innocence clear. Realizing that he of this legislation, I would like to call pal actor in connection with the hearsay I had mistakenly characterized me, Mr. Curb attention to one in which I have a spe­ rumor memo. If it had been possible to dis­ immediately sent a letter of apology. That cial interest. credit me by showing that I had solicited a Mr. Chairman, was an act of courage and a The last few years have seen a sharp bribe, by showing, in effect, that I was a display of statesmanship-especially since it increase in the numbers of women in criminal, then it would have had been diffi­ came at a time during the 1980 California the armed services and in the numbers cult, if not impossible for Mr. Pike to prove primary when such an apology was political­ of women veterans. Where women that Mr. Franchetti released with malice ly sensitive. As evidence of how courageous the hearsay /memo I referred to earlier. that act was I would merely point out to made up only 2 percent of our Na­ But, why was the Grand Jury convened in you that the Deukmejian for Governor tion's military strength in 1975, the San Diego County? What was the motive? Committee approached me to obtain a copy percentage rose to 6 percent in 1977 On its face, it is illogical to convene a San of Mr. Curb's letter to me so that they could and is expected to reach 12 percent by Diego Grand Jury to investigate something use it against him in the primary. . should have been easy to gain an indictment While Mr. Curb showed courage and integri­ female veterans is that the VA hospi­ in San Diego County whereas it would have ty, I cannot say the same of Mr. Franchetti. tal and health care system has tradi­ been much more difficult to do so in Los An­ It has been more than four years since Mr. tionally been oriented to meeting geles County. Unfortunately for Mr. Fran­ Franchetti indulged in dirty tricks; not once men's needs. A September 1982 report chetti, the main witness in his effort to dis­ during that time has he had the profession­ by the GAO recommended that VA credit me proved to be so unreliable and in­ al decorum or common decency to apologize take several specific actions to improve credulous that not even the San Diego to me or my family for his wrongdoings. All the quality and accessibility of health Grand Jury could find grounds for indicting the people involved in this conspiracy have care available to female veterans. me. This is the same witness who was used apologized to Mr. Pike, and correctly so. But to justify the raid of my attorney's office. not one person has seen fit to apologize to In response to the GAO report, the This witness demonstrated his unreliability me. VA has taken several steps which are by contradicting his Grand Jury testimony In my judgment, Mr. Chairman, Mr. Fran­ very encouraging. In January 1983, during his appearance at a subsequent pre­ chetti is not fit to serve the people of Cali­ the V A's Department of Medicine and liminary hearing in San Diego County. fornia in any capacity. He lacks integrity Surgery issued a circular which direct­ One need only glance at the Grand Jury and intellectual honesty. He has demon­ ed each medical center and outpatient transcript to see that the investigation was strated that once entrusted with the respon­ clinic to develop a written plan for im­ aimed at bringing about an indictment sibilities of appointive office, he has mis­ proving health care for women veter­ against me. To this day I find it incredible used that trust by engaging in unprofession­ that after failing to obtain this indictment, al and unethical conduct. Not only does this ans. Deputy Attorney General John Gordinier past conduct warrant strict scrutiny by this The Committee on Veterans Affairs told the press in San Diego County that the Committee as well, but the State Bar of quite properly has commended the VA investigation had never involved me. California. for its response to the GAO report. In 13648 EXTENSIONS OF REMARKS May 24, 1983 order to bolster and reaffirm the ac­ As long ago as 1976, for example, Rock­ "The B- 1 is a classic," said Rep. Patricia tions of the VA, the committee has in­ well listed the jobs that would be created in Schroeder, D-Colo., a member of the House cluded in H.R. 2920 a provision estab­ various states by production of the B-1: Armed Services Committee who opposed the California, 25,200; Ohio, 16,200; New York, plane. lishing an advisory committee on 8,800; Washington, 6,400; Oklahoma, 5,000; "From the standpoint of efficiency, to try women veterans within the agency. Maryland, 4,800; Tennessee, 4,000; Texas, to make a nuclear weapon in as many con­ The committee will monitor the issue 3,300; Kansas 3,300; Georgia, 3,000; Massa­ gressional districts as possible is nuts," she of health care for female veterans and chusetts, 2,200; New Jersey, 1,500; Florida, said. "But from a lobbying standpoint, it's will report regularly to the head of the 1,100; Connecticut, 1,100; Michigan, 1,000; incredibly sophisticated." VA on a regular basis on progress and lesser amounts for others. Documents unearthed by Senate investi­ being made. Help for the B-1 also came from United gators disclosed that as early as 1973, a list The idea for the committee was first Auto Workers locals in California, whose compiled by Rockwell showed B-1 subcon­ members work on the assembly lines where tractors alongside the names of nearly every embodied in H.R. 1137, a bill which I many parts for the plane are made. They, member of the House and Senate Armed cosponsored. I am pleased that the too, have lobbied their congressmen. Their Services and Appropriations committees. Veterans' Affairs Committee has seen lobbying was generally done separately Last year, when liberals tried to kill pro­ fit to include the proposal in H.R. from the company's but the objective was duction of the B-1, such doves as Sen. Alan 2920. I am optimistic that the advisory the same. Cranston, D-Calif., and Sen. Howard M. committee will make an important ··As far as lobbying and arm-twisting goes, Metzenbaum, D-Ohio, surprised other liber­ yes, we did a lot of that," Albert Ybarra, als by voting for the plane. contribution in the effort to give president of UAW Local 887 in Los Angeles, women veterans the full recognition Spokesmen for both say the decision was told the Post-Dispatch. made on merit. Skeptical colleagues suspect they deserve for their service to their Although contractors are reluctant to say the number of jobs at stake in California country.e so, it is widely accepted in congressional and and Ohio influenced their thinking. defense industry circles that companies The pork-barrel problem is faced by mem­ often choose subcontractors or sites for new bers from all parts of the country. About 2.9 THE PORK-BARREL DEFENSE plants with politics in mind. million Americans work in the manufactur­ ··You bet your sweet hippy they do,'' said ing of weapons. Defense contractors are Leonard Sullivan Jr., former assistant secre­ often the largest employer not only in a HON. PATRICIA SCHROEDER tary of defense for program analysis and congressional district, but in a state. OF COLORADO evaluation. In Missouri, McDonnell Douglas Corp. is ··I doubt that anybody would be putting IN THE HOUSE OF REPRESENTATIVES the largest employer; the Bath Iron Works, anything into Les Aspin's district,'' Sullivan which makes material. for ships, is No. 1 in Tuesday, May 24, 1983 contiuned, referring to the House Democrat Maine; the Ingalls shipbuilding facility of from Wisconsin who is a prominent critic of Lit ton Industries is tops in Mississippi. e Mrs. SCHROEDER. Mr. Speaker, I the Pentagon. ··But there·s ~ . n awful lot of would like to share with my colleagues work in Georgia.·· Other defense contractors are well known part 5 of an eight-part series on de­ One congressman, who asked not to be as economic powerhouses: Lockheed in fense lobbying and pork barrel. This ident ified, told of a defense contractor in his Georgia, Boeing in Seattle, Rockwell in state who was trying to put something into California, General Dynamics in Texas, article is about the B-1 bomber and is General Electric in Massachusetts. written by Bob Adams of the St. Louis Addabbo"s district in Queens. ··They"d like to be able to say: ·we employ 1,000, or 500- ·· If the president of Bath Iron Works calls Post-Dispatch. or 50, · " the congressman said. up, I talk to him," said Sen. William S. THE DEFENSE LOBBY: REACHING FOR And an official in the Washington office Cohen, R-Maine, a member of the Senate BILLIONS- PART 5 of one of the nation's major defense firms. Armed Services Committee. And Rep. G . William Whitehurst, R-Va., was going to be killed, plant with X number of jobs, and I just throughout the economy. I'm the congressman from that district and can't vote against that,' " Addabbo said. "In But Rockwell appears to have carried that I'm on the Armed Services Committee. It's effect, they've used the congressmen from advice to extraordinary lengths. The ven­ my job, whether I think the A-6 is good or those home states as lobbyists." dors and suppliers are spread across the not, to support it. Fortunately, I think it's a Addabbo says that Rockwell consciously United States like butter on hot toast. good plane. spread out its suppliers over the years as On the prototype models already manu­ '"You really feel you're involved in a part of a strategy to build a political con­ factured, for example, the engines were shared enterprise. You wind up feeling that stituency. "It's probably going to be a model made in Lynn, Mass.; the fan blades in you're helping them and they're helping the for many other contractors-particularly Springfield, Ohio; the rudders in Bloom­ district and it's all very wholesome. No dif­ the complicated weapons," Addabbo said. field, Conn.; the stabilizers in Baltimore; the ferent from sugar farmers protecting the Rockwell says it didn't deliberately spread actuators in Kalamazoo, Mich.; the wing sugar quota." out its subcontractors to gain political SUP· control surfaces in Tulsa, Okla. Downey has voted against Grumman's in­ port. But it hasn't been hesitant to capital­ The tires were made in Akron, Ohio; the terests on several occasions. But he and ize on that spread. parachute escape system in Des Plaines, Ill.; other members acknowledge that a constant The company has done detailed studies the secondary power subsystem in Phoenix, balancing act is required between the inter­ showing how much money-and how many Ariz.; the electrical power distribution est of the home state and the interests of jobs-would be created by the B-1 in various system in Melbourne, Fla.; the windshields the nation. states and congressional districts. And in Garden Grove, Calif.; the avionics inte­ Sen. Thomas F. Eagleton, D-Mo., sits on Senate and House members from those gration in Seattle; the radar altimeter in the Senate Appropriations subcommittee on states and districts have been made aware of ; the radar in Dallas; and the defense. Like Downey, Eagleton's liberal in­ those studies. seats in Denver. stincts prompt skepticism toward the de- May 24, 1983 EXTENSIONS OF REMARKS 13649 fense budget. He has voted for all major ration for the purposes of establishing a na­ lems, and we have no governmental appara­ McDonnell Douglas weapons, but hasn't tional industrial policy and reindustrializing tus in existence for moving this country always supported the add-ons that McDon­ our basic industries. I am grateful for this from its present economic situation into the nell wants. chance to update my earlier testimony with future. Although we should not duplicate In an interview, Eagleton spoke of the some recent personal experiences that I feel the structure and programs of the Japanese built-in influence that a McDonnell Douglas should be shared. Ministry for International Trade and Indus­ necessarily has. During the recent Easter /Passover period try, MITI does serves as an important exam­ "That company has close to 30,000 em­ I was part of a high level Trade Delegation ple of a national planning unit for industrial ployees" in the St. Louis area, Eagleton ob­ of the United States House of Representa­ development that works. served. "And those employees have wives tives which traveled to Japan for a series of In the United States we have had an expe­ and children, uncles and aunts. They're an meetings with leading Japanese government rience with such a national economic force, important part of my constituency. officials, bankers, and businessmen. We had the Reconstruction Finance Corporation. 'Tm from greater St. Louis, and I know the opportunity to engage in frank discus­ The original RFC, created in the Depres­ how the economy of the area would atrophy sions with the tapanese Ministers of Com­ sion, helped boost American productivity if McDonnell weren't there. So that's bound merce, Trade, and Finance, and the Japa­ and employment for nearly two decades. At to influence my thinking. I confess to being nese Prime Minister Nakasone. Also, during the beginning of World War II the RFC biased. the course of our visit we met with the chief played an important role in shifting our in­ "There is classic pork barrel in the de­ executive officers of major Japanese corpo­ dustries from a peacetime to wartime capac­ fense budget," Eagleton continued. "I rations from the automobile, electronic and ity. fought for Richards-Gebauer Air Force semiconductor industries. We were afforded In light of our current economic difficul­ Base at Kansas City. But I don't think the the opportunity of touring a Datsun auto ties and the need to reindustrialize for the national security has crumbled now that it's assembly plant, a semiconductor plant, a future, it is up to the Congress to begin a closed. So I know how the pork gets there­ modernized steel plant, and the Mitsubishi new economic revitalization program by the and how hard it is to get it out. shipyard facilities in Nagasaki. reestablishment of a Reconstruction Fi­ "In committee, you sometimes feel: Well, In 1982 the United States had a trade defi­ nance Corporation. The establishment of an put a few hundred million here and maybe cit with Japan of approximately $20 billion. RFC would offer our economy a flexible that'll buy us some peace and quiet with Projections of our total 1983 merchandise tool to foster fair and efficient growth in this guy, and give a contract out here and trade balance with the world based on early our industrial sectors predicated on our own that'll satisfy Congressman so-and-so. It's figures run between $60 and $75 billion. Our national interests. not a superb way to fashion a defense projected merchandise trade balance with The RFC envisioned in my legislation, budget." Japan in 1983 is projected to be approxi­ H.R. 134, would have the ability to use New York's Addabbo criticized the B-1 as mately 45 percent of that figure. loans, loan guarantees, and interest rate porkbarrel lobbying. But he saw to it that Japan has a highly directed trade policy subsidies to help older industrial firms that $294 million got into the budget last year through its Ministry of International Trade have difficulty obtaining financing, high­ for 20 more A- 10 Thunderbolt II attack and Industry CMITD. This ministry, as part risk industries with growth potential, firms planes-even though the Air Force didn't of Japan's national economic plan, targets competing with subsidized foreign firms, want them. The Thunderbolt is manufac­ certain industries for development as an and industries vital to the United States on tured on Long Island. Some of Addabbo's international trading force. The Japanese national security grounds. constituents work there. government works through MITI with lead­ The RFC Board would consist of the Sec­ "It's hypocritical," said Maine's Cohen, ing industrialists and financiers to choose retaries of Labor, Commerce, and Treasury, "for Congress to point a pious finger at the industrial sectors for economic develop­ and two representatives from both business contractors or the Pentagon and say: ment. and organized labor. The RFC Board would 'You're to blame.' When an industrial sector is chosen for have a first-year $5 billion appropriation, "We're all to blame."• development the Japanese government pro­ and it could issue obligations in an amount tects it domestically frorr. international not to exceed five times the paid-in capital competition. MITI arranges loans for the of the Corporation. THE CRITICAL NEED FOR A RE­ companies within this industry at very fa­ An RFC would provide the equity capital CONSTRUCTION FINANCE COR­ vorable rates. Since antitrust laws as we that our older industries need to retool and PORATION know them are not in force in Japan, MITI emerging industries need for development. will bring together several different compa­ A Reconstruction Finance Corporation HON. FRANK J. GUARINI nies in that industry to work together, to would help bolster the U.S. economy by an share product development costs, informa­ industrial policy committed to making the OF NEW JERSEY tion, and marketing strategies. These com­ U.S. competitive in world markets. IN THE HOUSE OF REPRESENTATIVES panies are generally allowed to absorb large My experience in Japan demonstrated to Tuesday, May 24, 1983 losses during their development period. me that a national industrial policy is possi­ These losses are expected and subsidized by ble in a private, market oriented economy. e Mr. GUARINI. Mr. Speaker, I am MITI. After a product sector is domestically It is a way to move our country into the very encouraged about the growing in­ established, the Japanese then go interna­ future while still retaining our emphasis on terest in the need to reestablish a Re­ tional with it. private sector employment. A Reconstruc­ construction Finance Corporation. I The Japanese industrial policy has served tion Finance Corporation would help bolster am a strong advocate of this proposal, them very well. A look at the trade figures the U.S. economy by making the U.S. com­ and I have testified before the House between the U.S. and Japan shows that petitive in world markets. I ask this subcom­ Subcommittee on Oversight and Re­ trade between our two countries has in­ mittee to give its full consideration to this creased from a total dollar figure of $5.7 bil­ AFL-CIO supported measure, H.R. 134.e negotiation on measures I have intro­ lion in 1967 to over ten times that amount duced to establish such an entity. just 14 years later. Imports from Japan now The need for a unified national in­ account for between 10 to 60 percent of the MARY LOU BURG dustrial policy and Reconstruction Fi­ U.S. market in steel, machine tools, and nance Corporation is as strong today electronics. And, as we are well aware, the HON. ROBERT W. KASTENMEIER as when I introduced my first measure Japanese account for slightly over 20 per­ over 2 years ago. With this in mind, I cent of all cars sold in this country and ap­ OF WISCONSIN am seeking cosponsors of my bill, H.R. proximately 75 percent of the imports sold IN THE HOUSE OF REPRESENTATIVES in the United States. Tuesday, May 24, 1983 134. I am including in this statement We are only too aware of the present eco­ my recent testimony on this bill: nomic problems facing our country. when I e Mr. KASTENMEIER. Mr. Speaker, TESTIMONY OF HON. FRANK J. GUARINI first appeared before this committee in Sep­ it was my sad duty on May 17 to an­ I want to thank Chairman Minish for al­ tember the unemplyment rate was 9.8 per­ nounce to the House the death of lowing me this opportunity to provide addi­ cent. Today it is 10.2 percent after having Mary Lou Burg, one of the most be­ tional information on the need for a nation­ reached a post-Depression high of 10.8 per­ loved political figures from my home al industrial policy to this distinguished sub­ cent. As I have already mentioned, our bal­ State of Wisconsin, who was in the committee. ance of trade deficit is continuing to in­ I first testified before this subcommittee crease. service of the Federal Government in on September 15, 1982 on my legislation to The current program of the Administra­ her capacity as a Commissioner of the establish a Reconstruction Finance Corpo- tion is not countering these present prob- Copyright Tribunal. 13650 EXTENSIONS OF REMARKS May 24, 1983 One of the most eloquent statements ago. Mary Lou became a leader in Demo­ publicans and Democrats, old and young, and beautiful eulogies given at her fu­ cratic politics in Washington County when and if they were friendless, she was their neral in Wisconsin was that of my there wasn't very much to lead and almost friend; if they needed a job, she was on the former Senate colleague, Gaylord her only associates were Clyde Schloemer phone bugging her friends to help. Among Nelson. The text of that eulogy fol­ and the Riegle family. She became County her many special loves were children. Her Chairman when she was 28 or 29, she orga­ friends' children were all her special friends lows: nized, she planned, she put it all together in and she was their's, including our children SENATOR GAYLORD NELSON'S EULOGY TO her spare time while she was manager of who grew up with Mary Lou fussing over MARY Lou BURG, MAY 20, 1983 WYLO Radio Station. She undertook a them. If the children wouldn't listen to We are gathered here to honor the fund raising dinner for my second campaign their parents, they would listen to Mary memory of our friend Mary Lou-and a re­ for Governor and ended up with jam-packed Lou. This was so, I think, because she didn't markable friend she was, indeed, to all who house of 300 at a local club, an unheard of treat ten-year-olds as children, but as full­ knew her. I never aspired to be a poet, but if turn out for a Democratic affair in those grown adults with equal status. They sensed I were one, it might be possible for me to days. Then she laughed with delight when that, they liked it and they responded in summon forth the words and the eloquence she discovered some Republicans counting kind, and then became friends and pals. adequately to describe who she was and the cars with dismay in the parking lot. She was one of those rare people about what she was all about. Of course, those She ran for Democratic National Commit­ whom it can fairly be said that everything who knew her do not need a poet to tell teewoman for Wisconsin and upset the in­ and every person she touched were the them, and those who did not have that good cumbent. Her work within the Democratic better for it. fortune will just have to take our word for National Committee so impressed Larry Many years ago when I was in college, I it. O"Brien, then the Democratic National read some lines I still remember, though I To a rare degree she possessed all those Chairman, that she was chosen Vice Chair­ no longer can summon the name of the best of human traits we honor and cherish­ man of the Democratic National Committee author. Those five lines describe Mary Lou integrity, intelligence, compassion, fairness, in 1970 and moved to Washington to take more eloquently than any words of mine courage, wit and humor, love and kindness. over her duties. She left the office of Vice could do. She was all of that and more. She was also a Chairman in 1972 so the Democratic candi­ Those lines were: date could recommend a Vice Chairman of feisty bundle of energy and combativeness ··Be such a person when the occasion called for it. which, I his choosing. A few months later, when the race was on to choose a new Democratic Na­ Live such a life might add, was pretty often in that political That if every person were like you arena where she chose to exercise her talent tional Chairman, Bob Strauss asked Mary Lou to be his campaign manager. The odds And every life such as yours and spend her energy. She understood that This earth would be God's paradise." what we are as a nation is mightily influ­ were heavily against Strauss. but Mary Lou enced by the integrity of the political plunged into the fray with all of her energy, Mary Lou was such a person.e system and the quality and vision of its know-how and organizational expertise, and leadership. She understood that. She knew the election was won by a slender margin. In that the success or failure of any govern­ a conversation earlier this week, Bob MS. CLARA NICHOLSON ment in a free society depends upon the Strauss told me he never knew anyone in confidence of the people in the rightness politics with better political sense and judg­ ment than Mary Lou. Strauss abolished the HON. BARNEY FRANK and goodness of their government. It was OF MASSACHUSETTS her mission to help instill that necessary Office of Vice Chairman and created the sense of confidence. She brought to the po­ office of Deputy Chairman and asked Mary IN THE HOUSE OF REPRESENTATIVES Lou to take the position. She ran the Na­ litical system an unusual political instinct, a Tuesday, May 24, 1983 dedication to excellence, an optimism and tional Office and participated with Strauss enthusiasm that inspired everyone around in all policy decisions. After Carter was •Mr. FRANK. Mr. Speaker, devotion her. elected in 1976, the President appointed her to long years of public service is a a Commissioner of the newly created United noteworthy and laudable attribute de­ She enjoyed political combat because it States Copyright Royalty Tribunal. She was was fun, because the principle and the cause confirmed unanimously by the United serving of our attention. This week, were important, because the stakes were States Senate and one year later became Ms. Clara Nicholson, of Natick, Mass., high, because she wanted to influence the Chairman of the Commission. will be honored by her colleagues and system in a meaningful way. And that she All of this is but a small bit of her politi­ the community for her work as the ex­ did. She was petite, only five foot two and cal career. She was a friend and political ecutive director of the West Suburban didn't weigh very much but no one who ever ally of Presidents, Senators, Governors, went to battle against her left the battle­ YWCA in Natick for 23 years. Clara Congressmen, state legislators, and political Nicholson has been an effective orga­ field unscathed, if they left the battlefield party leaders from coast to coast. at all. She fought to win, she fought fair, Though politics was a big part of her life, nizer over the years. She has left her but if she lost, you may be certain she there were no boundaries to her interests mark during her tenure. Since she would be back determined to change the and her curiosity. She was a Civil War buff began her career, the YWCA has result. She shared Vince Lombardi's philos­ and knew the Generals, the battles, the pol­ grown from a single house on Hartford ophy, "Winning may not be everything, but itics of the era and tramped the battlefields. Street to a new building at 231 Bacon losing is nothing." She wrote, put to music and had published a For those who do not know it, if such Street in Natick; and the center has fine Civil War recording. If per chance you increased its services to women in the there be, Mary Lou was a Democrat. She were of a mind to argue the merits of a Civil displayed the label on her sleeve in neon War General or his battlefield tactics, she area dramatically. Clara Nicholson's lights. At the same time, she was a small was available to set you straight. record of accomplishments as chief ad­ "d" democrat who respected the right of all She loved to fish, as did her father, and ministrator of the West Suburban others, including her friends, to their con­ jumped at any chance to go deep sea fishing YWCA demonstrates the gift of lead­ victions no matter how indefensible she in the Dry Tortugas off The Everglades Na­ ership and the ability to respond to thought those convictions to be. She would tional Park. When she hooked a 50 pound the needs of women served by the or­ right this moment delightedly embrace the grouper or cobo, it was always a close ques­ ganization. allegation that she, after all, was tolerant to tion whether the fish came aboard or she a fault as witness the fact that some of her went over the rail to join it. Every winter Clara Nicholson has recognized the very best and dearest friends were Republi­ after Christmas, she went snowshoeing with importance of providing services to cans. her friends, the Hanson's, in the Chequame­ women through the YWCA by estab­ Once, when pressed to explain how she gon National Forest, and in the fall she lishing programs for displaced home­ reconciled her strong partisan views with loved to go bird hunting there, a hapless makers, for executive secretarial train­ her Republican friendships, she laughed sight, I must say, trudging through the ing, for consumer protection, for word and quoted Adlai Stevenson, who once said, woods struggling with a shotgun have again processing training, for a women's pro­ "Most of my relatives and many of my best her size. She was a photographer, too, and a friends are Republicans. I love them all and very good one. When she wasn't taking pic­ tective service, and a host of other I would trust them with anything on earth, tures of people and nature, she was taking supportive programs. except public office." advanced photography courses at the On May 26, Ms. Nicholson will be Mary Lou came by her politics honestly Smithsonian Institution. honored by her many friends and col­ and early. Her father was Democratic Sher­ The diversity of her friendships was noth­ leagues for the 23 excellent years she iff of Washington County some 40 odd years ing short of exceptional-rich and poor, Re- has given the women of the Natick May 24, 1983 EXTENSIONS OF REMARKS 13651 area. As she begins her retirement, Proponents say we need it to get the tary grounds: <1 > to demonstrate US serious­ Clara Nicholson can be proud of her Midgetman mobile missile. That is ness because the US announced many years many accomplishments. Through her truly an odd position because the MX ago that it would build a new ICBM, (2) to example we can all learn the value of is contrary to all the arguments in match the Soviets, who have missiles with similar characteristics, and <3) to pressure service to the community.e favor of Midgetman. Proponents of the Soviets into scrapping their threatening the MX also say we need the MX to ICBM forces and into some arms control pursuade the President to accept arms agreement. RECOGNITION OF NATE control. But the President is already HELMAN But do these political arguments warrant on record in favor of arms control. We the increased risk of a nuclear war that the are all waiting for actions to go with MX creates? Clearly no. HON. GEORGE E. BROWN, JR. his words in favor of arms control, but Spending billions on a weapon only useful OF CALIFORNIA I certainly do not see why building the in a first strike demonstrates madness, not IN THE HOUSE OF REPRESENTATIVES MX would lead him sooner to take seriousness. Soviet leaders, and in fact, the such actions. Besides, since when have entire world, would be more impressed by Tuesday, May 24, 1983 unfaltering, realistic negotiations to limit we made $25 billion defense decisions nuclear weapons rather than by the pro­ e Mr. BROWN of California. Mr. to influence our own Government? Speaker, it is with great pleasure that curement of new ones which make nuclear Proponents also say we need the MX war more likely. I introduce this item into the RECORD to coerce the Soviets to negotiate seri­ in recognition of a fine American, Matching the Soviet Union with a coun­ ously. That is the most dangerous ar­ tersilo ICBM, which only provides a target Nate Helman. Mr. Helman is being gument of all. If we should build up that could tempt the Soviets to actually use honored June 2, 1983, by the Inland before going to the negotiating table, their missiles against the US, is a mindless Empire Council of the Boy Scouts of then surely the Soviets would find the way to demonstrate American strength. In­ America at the citizen-of-the-year same policy would be good for them. stead of bemoaning the decision not to dinner. He has distinguished himself So, the buildup continues, ending only deploy a new ICBM as a sign of US weak­ over the years as a successful business­ ness, we should be proclaiming the Soviets' in nuclear catastrophe. concentration on potentially vulnerable man, and as a strong supporter of vari­ The MX would not be used for a ous youth organizations in the com­ ICBMs as evidence of their inferiority. We first strike because that is not our should be extolling the survivability of munity. Helman is noted for his will­ policy. It would not be useful as a America's overall strategic deterrent and ingness to work with numerous asso­ second-strike weapon because the use this as an inducement for the Soviet ciations, enabling the youth of the enemy's silos would be empty. The Union to move to a more survivable strate­ Inland Empire to participate in sport missile is strategically illogical. And to gic force structure with less reliance on activities with adequate uniforms and use such a deadly and expensive land-based missiles. safe equipment regardless of economic weapon for either domestic or foreign Buying new threatening weapons as arms means. control bargaining chips, which the Reagan political purposes is dangerously mis­ administration has said it will not give up in Helman was born in Colton on July guided. Now is the time to stop the 3, 1916. A gratuate of Colton High the negotiat ion, is not a prescription for get­ MX. ting the Soviets to exercise restraint. Does School, he received his B.A. degree in On this subject, Pete Scovile of the anyone seriously believe that the Soviets 1938 from the University of California, Arms Control Association wrote a very will reduce their ICBM warheads by a third Berkeley. He served in the Army good article, which appeared in the croft commission, increased stability and re­ Waste Reduction Act, which proposes to finance the Superfund through fees The Hazardous Waste Reduction Act duced risk of nuclear war, we should adopt begins with the premise that federal policy its recommendations to begin the search on that would be levied on the land dis­ should discourage the land disposal of haz­ a small ballistic missile submarine as an al­ posal of hazardous waste. Our bill dis­ ardous waste. Every year, the U.S. generates ternative to Trident, to study the deploy­ tinguishes between toxic and nontoxic between 41 and 54 million tons of hazardous ment of a small single-warhead ICBM, and hazardous wastes, which are already waste, of which 80% ends up in landfills. to adopt a START position allowing missiles separated into categories under regula­ Even under current federal regulations, with fewer warheads per missile. But we tions established pursuant to the Re­ landfills remain the cheapest disposal should cancel once and for all the ill-starred option. As a result, environmentally prefera­ MX program which can only undercut this source Conservation and Recovery Act. Toxic hazardous waste would be ble alternatives like recycling and the treat­ goal and make more likely a nuclear holo­ ment of waste materials are unable to caust. taxed at $75 per ton, while nontoxic secure a foothold in the market. • treatment, incineration, or recycling of rected to landfills because they are cheap­ harzardous waste. The fee system er.- H. Clay Robinson for the Hazardous NATIONAL WASTE POLICY would supplement-not replace-exist­ Waste Treatment Council. ing Federal regulations governing the CURRENT FEDERAL POLICY HON. CLAUDINE SCHNEIDER disposal of hazardous waste. Our bill proposes to change t he basis The advantages to this approach are under which fees are collected from the OF RHODE ISLAND chemical industry for the Superfund, which IN THE HOUSE OF REPRESENTATIVES obvious, and have been pointed out in the OTA report: finances the cleanup of abandoned hazard­ Tuesday, May 24, 1983 ous waste sites. Under current law, the fees The underlying philosophy of the waste­ are collected on chemical feedstocks that e Mrs. SCHNEIDER. Mr. Speaker, 2 fee system is to reward those who minimize provide the raw material for the manufac­ months ago, the Office of Technology future risks and costs to society through the t uring process. Because the raw material Assessment released a 3-year study on use of environmentally preferred alterna­ used often bears no relationship to the haz­ our national waste policy that reached tives. ardous waste created as a byproduct, the Su­ some startling conclusions. Some of The Hazardous Waste Reduction Act perfund fee structure does not act to dis­ the highlights have already received provides what is now lacking from courage waste generation. wide circulation in the Congress, but I Federal hazardous waste policy: An The current Federal program indirectly think they are worth repeating: economic disincentive to hazardous provides more disincentives than incentives for waste reduction. Many critics of this ap­ Each year we generate between 41 waste generation. Conversely, it proach feel that the fund should have been and 54 million tons of hazardous should provide a needed stimulus to financed through a •·tail-end" fee on haz­ waste. those industries that offer an alterna­ ardous waste generation, rather than on As much as 75 percent of that waste tive to land disposal. ··front-end" feedstock materials that only could be safely treated, recycled, or in­ Over the past 2 weeks, Mr. WYDEN indirectly lead to hazardous waste.-Office cinerated, with technologies that are and I have met with representatives of Technology Assessment. known today, or could be brought into from major environmental groups, HAZARDOUS WASTE FEES production within 5 years. from the Hazardous Waste Treatment Our bill would extend the Superfund for a Yet four out of every five tons of Council, and from the Chemical Man­ ten year period, beginning in 1985 when the hazardous waste that we produce-de­ ufacturers' Association. We have re­ current law expires. The fee structure used spite all the publicity about Love ceived a number of helpful sugges­ to finance the Superfund would be levied on Canal, the Stringfellow acid pits, and tions, most of which have focused on hazardous waste generation, replacing the current fees on chemical feedstocks. The the Picillo dumpsite in my own State trying to simplify the hazardous waste bill distinguishes between toxic and non­ of Rhode Island-is probably headed fee system to make it practical to ad­ toxic hazardous waste, two broad categories, for a landfill. minister. We have incorporated those using the definitions developed under the Why? Because, as the OTA report suggestions in the revised draft of our Resource Conservation and Recovery Act. concludes, landfills are still the cheap­ bill by eliminating the tax on treat­ The land disposal of toxic waste would be est disposal option, despite all the reg­ ment and transportation, separating taxed at $75 per ton, while the land disposal ulations designed to make them safer. waste into two categories-toxic and of non-toxic hazardous waste would be Federal policy up to now has had to nontoxic hazardous-instead of three taxed at $25 per ton. The rates would double after the first five years of enact­ focus on the short-term problem-reg­ as provided in our original bill, and es­ ment. On-site and off-site land disposal ulating the storage, transportation, tablishing one tax rate for all types of would be taxed at the same rate, but no fees and disposal of hazardous waste. Is it land disposal. This morning, the Na­ would be charged for recycling, incineration, not time to take a step forward by tional Wildlife Federation, the Chemi­ or the treatment of hazardous waste. trying to cut down on the sheer cal Manufacturers' Association, Envi­ STATE GRANTS volume of waste that we must dispose ronmental Action and the Environ­ The bill would earmark $200 million from of every year? mental Policy Center joined us at a the revenues raised by the waste fees to pay Part of the problem is the fee press conference to endorse the con­ for EPA's program of grants to states for system that is used to raise the chemi- cept of a waste disposal fee system. We enforcement of hazardous waste laws, and May 24, 1983 EXTENSIONS OF REMARKS 13653 to help locate and classify the thousands of any opportunity for this work. Ev­ Despite DOD claims that the U.S. abandoned waste sites not covered by the genia is worried about his morale. stockpile of chemical weapons is obso­ Superfund. The grants could also be used to Evgenia graduated from medical lete and deteriorating, GAO found provide technical assistance to small manu­ school in Leningrad and proceeded to facturers interested in developing a recy­ that: cling or treatment capacity. work in the Institute of Medical Sci­ The precise size and conditions of the U.S. ence, where she obtained her higher stockpile are now known. AUDITS BY INSPECTOR GENERAL degree in the field of experimental pa­ The bill provides for an annual audit of Although DOD has claimed that bi­ the Superfund program by the Inspector thology. She has published over 40 naries are more advantageous than General, to ensure that Superfund monies papers in Russian journals, predomi­ nately on infection immunities, as well the existing unitary chemical weap­ are spent for the purposes for which they ons, GAO found that: are intended. Provision is made for automat­ as one paper in a Western journal ic reimbursement of the Superfund if any . Unfor­ their livelihood. Ivory for this purpose important bills to aid this Nation's vet­ tunately, Interior's regulations have is unavailable from any other source. erans. We must not forget the sacrifice not been effective. Much ivory enter­ In addition, during the first 90-day made by veterans in facing danger and ing this country still comes from ele- period, the bill would exempt worked displacement during the years they May 24, 1983 EXTENSIONS OF REMARKS 13655 have served this country. Today, as House to aid conventional mortgage­ review of the research on dioxin led us to always, we have the responsibility to holders. Certainly veterans deserve Dr. Carnow. He's pure physician, a non-po­ meet their continuing needs. The two the same level of mortgage foreclosure litical animal, and was willing to look for measures before us keep us on the relief that the rest of our people the reason these men are sick," Wells said. Carnow performed a 12-hour series of right track of being responsive to enjoy. This would go far to insure that tests and physical examination on the three those who have served our country. no group of unemployed homeowners veterans in March. Carnow's findings are The first piece of legislation, the would lose his or her home because of markedly different from information the Veterans' Administration Health Pro­ current economic uncertainties. We men received following examinations by gram Amendments of 1983, H.R. 2920, should support this type of specific Veterans Administration doctors. changes the United States Code to relief for all deserving homeowners The results of Carnow's independent tests revise and extend certain health care displaced by the recession. show Davis and fellow veteran John Gro­ programs of the Veterans' Administra­ It is my hope that both of these bills mowski of Milwaukee suffer from abnor­ tion. I am particularly supportive of will represent significant improve­ malities in their blood and vascular system, those portions of this legislation that ments in veterans programs for those liver disorders, nervous system effects and severe depression. will address several of the pressing in special need of assistance. I am None of these maladies were diagnosed problems confronting Vietnam veter­ proud to lend my fullest support to through tests the men had in the VA's ans. This Congress and the Nation are this legislation and would urge my col­ Agent Orange screening program. Davis was beginning to move in the direction of leagues to join me in voting in favor of told by VA doctors he needed surgery on providing necessary services to this these bills.e nerves in his wrist and should undergo psy­ very deserving group of veterans. chological counseling. Gromowski, who has Under this bill, the VA would be au­ suffered from seizures since 1972, said VA thorized to extend for an additional 3 NEW DISCLOSURES REGARDING doctors were unable to identify their cause. years psychological readjustment AGENT ORANGE The third veteran in the group, Medal of counseling to Vietnam-era veterans at Honor recipient John Baca of Springfield, community-based vet centers. Current­ HON. THOMAS A. DASCHLE Mo., will require further examination before OF SOUTH DAKOTA a diagnosis can be made, Wells said. ly, these vet centers in 136 locations Both Davis and Gromowski went through around this country provide critical IN THE HOUSE OF REPRESENTATIVES the VA's Agent Orange screening at the VA services to tens of thousands of Viet­ Tuesday, May 24, 1983 Hospital at Wood, Wisc., a Milwaukee nam veterans who are seeking assist­ e Mr. DASCHLE. Mr. Speaker, a suburb. At the conclusion of tests there, ance. This is a program that · has recent news story in the Robinson, Ill., they were sent letters signed by Dr. Michael proved its value and those close to Daily News, present striking evidence G. O'Grady, the staff environmental physi­ Vietnam veterans recognize the con­ cian, that said the results of their initial of the link between the dioxin in agent tests were "satisfactory." sensus of these programs deserve to be orange, to which many servicemen continued. The Daily News attempted to contact were exposed in Vietnam, and the ill­ O'Grady on Wednesday, but was told he The Administrator of Veterans' Af­ ness that many of those servicemen could not speak to the press and was re­ fairs also would be required under this have suffered. f erred to public relations spokesman Y. C. bill to conduct a comprehensive study I commend the writer, Tony Gordon, Parish. A woman in Parish's office said he of the prevalence of stress-related dis­ for his extensive research, and I rec­ would not return to work until Monday. orders and readjustment problems ommend his article to my colleagues It is the present policy of the Veterans among Vietnam-era veterans. An addi­ for their understanding of this signifi­ Administration to deny any disability claims tional part of this study will focus on cant issue: based on dioxin's effects. The VA provides the general health status of this free physical examinations to vets who feel [From the Robinson CIIU Daily News. May they may have suffered adverse health ef­ group. I am encouraged that this 5, 1983] study will not be conducted piece fects from exposure to Agent Orange. APOCALYPSE LATER? "0RANGE·HOT" The VA said Wednesday 369,000 Vietnam meal, but will include a nationwide CONTROVERSY vets have gone to VA hospitals complaining sampling. I hope that this study will of illnesses they thought could be related to provide the data we all need to tailor A medical specialist in Chicago has diag­ Agent Orange in the last year and 9,400 of effective programs to those most in nosed a number of physical ailments in them were ill enough to be hospitalized, need. West York resident Sammy Davis and an­ none for any illness the VA says is caused For too long we also have failed to other Vietnam veteran as being related to by Agent Orange. examine the special problems facing the defoliant Agent Orange. Vern Rogers, a spokesman for the VA the woman veteran. I am pleased that The diagnosis is believed to be the first Office of Public and Consumer Affairs in time a physician has drawn a connection be­ Chicago, last week said the agency is "pro­ H.R. 2920 would establish a Women viding medical screening for any veterans Veterans' Advisory Committee as an es­ tween illness and the exposure of U.S. serv­ icemen in Vietnam to the dangers of dioxin, who think they may have a problem and we sential link between women veterans an ingredient of Agent Orange. are doing so without any medical proof in and the VA. This committee will rec­ Davis, who was awarded the Medal of the entire world that a link between Agent ognize the continuing contribution Honor for service in Vietman, was one of Orange and medical problems exists. There women are making to the armed serv­ the first three Vietnam veterans to be ex­ is no piece of paper by any doctor anywhere ices and act to upgrade programs and amined for possible dioxin-related illnesses that says anything at all is caused by Agent services for female veterans. As the by Dr. Bertram Carnow, president and Orange. armed services attract more and more senior scientist for Carnow, Conibear and Results from Carnow's testing and exami­ qualified women, their ultimate wel­ Associates, Ltd. nations may provide that piece of paper. Carnow is the director of occupational and Although Carnow said "I have no inten­ fare as veterans is an important priori­ environmental medicine at the University of tion of becoming involved in the politics of ty. Illinois School of Public Health, an attend­ this issue," he said his diagnosis of Davis "is The second piece of legislation ing physician at three Chicago hospitals and a matter of interpretration of studies of before us, the Veterans' Housing Bene­ the author of more than 50 articles and people who have the same things." fits Amendment of 1983, H.R. 2948, publications on the effects of the environ­ " It comes down to a question of whether would provide needed assistance for ment on human health. you believe something that looks like a veterans who are unemployed or who An advisor to the three veterans, Irv duck, walks like a duck and talks like a duck have suffered a substantial reduction Wells, is chairman of the Vietnam Veterans is a duck. There may be other animals with Confederation of Milwaukee and a licensed feathers that spend time in the water, but a in household income and who are 6 surgical physician's assistant. He arranged duck is one specific animal and people months delinquent on guaranteed VA to have the three men see Carnow for an ex­ should be able to determine that from inves­ housing loans. The scope of this par­ amination. tigation," Carnow said in assessing the link ticular relief would be similar to other "We wanted to have our guys examined between dioxin and the health of the two legislation recently passed by the by the finest expert in the country and a veterans. 13656 EXTENSIONS OF REMARKS May 24, 1983 In an interview restricted to the results of He said his firm employs "the state of the vant magazine articles. Doc truly cares the Davis examination and general informa­ art in clinical medicine," but he has no about and is supportive of all his students, tion about his procedures, Carnow told the equipment or procedures not available to often dedicating his free time to the writing Daily News "Mr. Davis displays the same the VA. of college recommendations, giving extra symptoms traditionally found in people who "The Veterans Administration has the ca­ help, and even inventing and building his have been exposed to dioxin, and there is pability to do anything we can, but not own instruments. We find that Doc's per­ absolutely nothing else in his background to having the results of Mr. Davis' tests there, sonal method of teaching extends beyond suggest any other exposure to dioxin than I don't know what type of examination they the classroom, creating a mutual respect be­ the Agent Orange in Vietnam." conduct. The VA has a two-volume book on tween him and his students, and often gen­ According to both the doctor and patient, the research into dioxin, they know what is erating enduring friendships. Carnow's examination of Davis detected the being done. They have the toxologists, bio­ "Doc's experience and skill as a teacher following: statisticians and laboratory physicians capa­ has earned him the praise of other faculty -High cholesterol, high triglycerides and ble of doing these same tests. It becomes a along with numerous positions of responsi­ a large concentration of fatty cells in his question of whether or not they agree with bility. He is a sponsor of our school's science blood, a condition normally found in people me," Carnow said. club and a member of the early graduation much older than Davis. These factors, One group of people believed to have committee. An active member of the Nation­ Carnow said, pose "a very high risk of heart agreed with Carnow and his tests for ad­ al Association of Physics Teachers, Doc disease." verse health effects caused by dioxin expo­ Rank has written articles on physics, includ­ -A lowered level of liver functions and a sure are the 12 members of a Madison ing a chapter in The Best of Physics from white blood cell count pattern that is simi­ County jury who in August began granting Science Teacher's Workshop

Current regulation Proposed

PERFORMANCE APPRAISAL GS-1-15: Purpose: "use results as basis for rewarding, reassigning, pro­ Purpose focused: "as basis to grant or withhold pay increases or moting, reducing in grade, retaining, and removing" <5 CFR grant merit pay; reassign; promote; retain in reduction in force; 430.101>. reduce in grade or remove" <5 CFR 430.204). Content: each agency to develop its own- OPM to standardize appraisal systems . Only 1 rating level prescribed: "unacceptable performance ...... 5 rating levels prescribed: outstanding; exceeds fully successful; fully successful; minimally successful; unacceptable. Sanctions: unacceptable performance could result in demo­ No change : Content: minimum of 3 rating levels under law-fully successful; Adds 2 rating levels: "outstanding" and "exceeds fully successful" minimally satisfactory; unsatisfactory <5 U.S.C. 4312). to current 3 levels <5 431.204). Consequences: Performance awards require minimum of "fully successful" .... No change since requirements statutory. Reassignment, transfer, removal for unsatisfactory rating ...... Overall: OPM proposals standardize design and criteria for GS-1-18 per­ formance appraisal systems. Proposals establish 2-tier system which requires higher ratings in higher steps <7-9> and for faster career ladder promotions GS-1-12: Mandatory: October comparability increase . Eligible for step increases : Eligibility defined: Based on "acceptable level of competence" vaguely defined Steps 1-6: require "fully successful;" steps 7-9: require "exceeds in 5 CFR 531.401. fully successful." Waiting period per law <5 U.S.C. 5335>: 1 year ; 2 No change since statutory. years <5-7>; 3 years <8-10>. Extra step increase may be granted for "high quality QSI requires "outstanding" rating: increase mandatory for steps 1- performance"-incentive awards described below. 3; increase optional for steps 4-9. GS-13-15

Merit increase based on "current performance appraisal" <5 Guaranteed other '12 comparability for "fully successful" rating. CFR 540.104, not defined>. Amount between minimum and maximum of grade from pool of No rating levels specified for getting rest of merit increase. funds consisting of comparable step increases and QSI. GS-16-18 : Performance awards require minimum fully successful rating Performance awards based on new 5-level rating system; "fully not to exceed 20 percent of basic pay to no more than 20 successful" remains minimum standard under the law. percent of agency SES (5 u.s.c. 5384). GS-1-15 Incentive Awards <5 CFR 451>: Cash award up to $25,000 for meritorious idea or superior Split into 2 award categories: accomplishment. Cl> Performance Awards <5 CFR 531.601>: may be nonmonetary as By agency up to $10,000; by OPM over $10,000 well as cash; may not exceed 15 percent of salary; must be tied to rating, minimum of "'fully successful". <2> Special Awards (5 CFR 451>: clarifies that award for idea or effort beyond assigned job; includes nonmonetary awards; cash up to $25,000 based on measurable cost savings ; cash awards for nontangible benefits . PROMOTIONS For Career Ladder Positions : GS-1-5: max of 2 grades per year ...... No change. GS-6-18: max of 1 grade per year ...... No change <5 CFR 335). Criteria is "according to merit" where there is work to do in New criteria for GS-9- 18 promotions: promotion in one year where next grade (5 CFR 335.103). recent rating is '" outstanding"; 2 years wait where recent rating is ..exceeds fully successful"; 3 years wait where recent rating is .. fully successful". All grades require minimum of "fully successful" for promotion. REDUCTIONS-IN-FORCE provides 4 retention factors: tenure Ci.e. em- ployment status>; military preference; length of service; efficiency or performance ratings-without weighing any factor. Regs C5 CFR 351) prioritize factors: 1st: tenure ...... Same. 2d: veterans preference ...... Same, except that law re: veterans with unacceptable performance to be implemented <5 U.S.C. 3502Cb». Unacceptable rating will cause a reduction in subgroup placement. 3d: seniority /4th: performance: credit for performance: 4 years: Performance to precede seniority under performance appraisal '"outstanding" ratings; 0-3 years: where exceeds minimum. system proposed by OPM. Bumping rights unlimited . "'Retreat" rights through Federal career progression unlimited ...... Retreat limited to positions held within last 5 years and broadened to include positions held within current grade. Area of RIF action ...... Competitive .. area .. defined more clearly; competitive '"level" more flexible to permit adjustments to bumping employees. Notice period: General: 30 days or more ...... 30 days max and minimum. Specific: 5 days Cto individual> ...... 10 days. Appeals permitted for any RIF action C5 CFR 351.901> ...... Appeals limited to demotion, separation, or furlough for more than 30 days; .. reassignment .. does not permit appeal.e