11080 EXTENSIONS OF REMARKS May 15, 1986 EXTENSIONS OF REMARKS DON REGAN: AN ELOQUENT whose patriotism I esteem. I appreciate allies, and our former enemies, in rebuilding SPOKESMAN FOR THE REAGAN your efforts, Bill, and those of your vice their shattered lands. And I would submit REVOLUTION chairmen, in arranging this dinner. Eliza­ that this economic creativity was but one beth Dole-well, I don't suppose Liddy Dole aspect of a wider creativity that permeated needs any introduction in this town. Suffice the culture as the rest of the world turned HON. JACK F. KEMP it to say that she serves President Reagan to America as its leader. Although in the OF NEW YORK with savvy, with style, and with a quality sixties and seventies it became fashionable IN THE HOUSE OF REPRESENTATIVES that's often rare in government-a sense of to portray the decade of the fifties as dull humor. She also has a persistent quality or square-a period culturally inert-in fact Thursday, May 15, 1986 that won't take "no" for an answer-! it was anything but that. Mr. KEMP. Mr. Speaker, I recently had the know-! have to deal with her regularly and "Not since the 1920's," Professor Jeffrey privilege to be in the audience to hear White she's remaking me into a "yes" man. Hart of Dartmouth writes in his book on House Chief of Staff Donald Regan's remarks There are so many others, so many good the fifties, "had so much been happening, to the Center for the Study of the Presidency friends. I can't possibly summon up the both in popular and in high culture. . . . For phrases to tell you how grateful I feel, so the first time in history, New York was the where he received the Distinguished Service permit me to use those two old, simple art capital of the world.... In Award. He spoke eloquently of the accom­ words-and let you know that they come and , important things were hap­ plishments of the Reagan administration, and from my heart: My friends, thank you. pening. And the Nation as a whole experi­ gave a more personal side of the President's But the assignment of making a speech enced an unprecedented burst of prosperity, leadership and strength of will-qualities that before this distinguished group is one that I of home buying, car owning, and, of course, have helped transform that national mood to approach with trepidation. Much of what I television." New inventions, some of them as one of pride and optimism about the future. have to tell you, you will already have a result of wartime innovation, came to We in Congress have had the opportunity to heard. Standing before so many presidential market, spawning new growth industries. work with President Reagan on various issues, scholars and others who have worked for, or More marriages and the baby boom pro­ with Presidents, indeed, I'm reminded of the duced a challenge to our economy to keep and we can see the evidence of the new be­ story about a man who drowned in the pace. ginning he has given our Nation and the free Johnstown flood. When the man got to There were indeed exceptions, some dras­ world. However, Donald Regan works with the heaven, St. Peter told him an audience had tic. Black Americans in particular still suf­ President on a day-to-day basis, and plays an gathered to hear the latest news from fered severe discrimination, but they were important role in shaping the policies that are Earth. "No problem," he told St. Peter, "I'll able to make some progress. All in all, at the core of the Reagan revolution. I com­ talk about the flood I was just in." St. Peter though, the country took a justifiable pride mend Don's provocative speech to my col­ answered, "Better make it good. The beard­ in itself. Hart writes, "Americans felt good leagues, and hope every Member will find it of ed fellow in the front row is Noah." about themselves and their country during But perhaps my perspective as Chief of the fifties." interest. Staff has permitted me certain insights that The sixties began with a sense of prom­ MR. REGAN'S REMARKS: THE CENTER FOR THE will prove of interest; and if I may, I'd like ise-then of promise betrayed. STUDY oF THE PREsiDENCY to spend a few moments considering the Here are the words of John Kennedy as Ladies and gentlemen, for two decades the place of the Reagan Presidency in the he campaigned for President at the outset Center for the Study of the Presidency has second half of the 20th century, the period of the decade. "Can the world exist half sought to shed light upon a peculiar institu­ since Franklin Roosevelt established the slave and half free • • •? The enemy is lean tion. Theodore Roosevelt called the office a modem presidency itself. Permit me first to and hungry, and the is the "bully pulpit." Roosevelt may have been too present in broad outline a number of devel­ only sentinel at the gate.... Extraordinary bully to his successor, William Howard Taft; opments that took place during these dec­ efforts are called for by every American Taft, it's said, referred to the office as "the ades-and to begin with a word about my who knows the value of freedom." Yet by loneliest place on Earth." And shortly after own vantage point when this period began, the time of John Kennedy's death, the his inauguration, Harry Truman said to the more than 40 years ago. Soviet Union had established itself and com­ press corps, "When they told me yesterday During the final years of the Roosevelt munism in Cuba, and the United States had what had happened, I felt like the moon, Presidency, I found myself serving as a sent soldiers to Vietnam. the stars, and all the planets had fallen on major in the Marine Corps in the Pacific. There followed two decades of national me." As Chief of Staff, I understand the The battle conditions we encountered were, agony. The bitter fiascos of Vietnam and part about getting hit by falling objects. to paraphrase Churchill, not uneventful­ Watergate preoccupied our leaders and But in the midst of shifting and often con­ planes roaring overhead, ships pounding brought low the presidency itself. tradictory viewpoints on the Presidency, the their guns, the islands themselves seeming Throughout the world, the Soviets ad­ Center has provided high standards of to shudder; landing on beaches under heavy vanced. Between 1960 and 1980, the list of scholarship and genuine understanding. fire, pursuing a dogged enemy through countries under Soviet domination grew to This award from the Center represents a jungle or over rock. All this has of course include Vietnam, Laos, Cambodia, South high honor indeed. I must add that I feel been described in detail by historians and Yemen, Ethiopia, Mozambique, Angola, Af­ likewise honored by the presence here to­ journalists, and I mention it only because I ghanistan, and Nicaragua. The United night of so many I deeply respect-scholars believe it throws light on the sense of unity States, meanwhile, suffered a profound eco­ whose work I admire, friends from the busi­ and mission that our Nation then evinced. nomic disturbance. By 1980, inflation had ness world, colleagues in the Administra­ Freedom, democracy, opportunity for the risen to 12 percent and the prime rate of in­ tion. Dr. Hoxie, the Center's president, is an common man-all these we considered terest had reached more than 20 percent, old friend. He is also a man who served with worth fighting for, and yes, if need be, the highest level since the Civil War; our distinction in World War II, who rose in the worth dying for. Gross National Product had virtually Air Force to become a brigadier general, and When the war ended, as we were leaving stopped growing. who has had a long and distinguished career the service, the country was alive with a The mood of the country during this in education. Thank you, Dr. Hoxie, for sense of expectation, an eagerness to go on period went sour. It was as if the youthful­ those king words. Dr. Farkas, the Center's from the destruction of combat to the chal­ ness and exuberance of the fifties had been chairman, is another friend. Our Ambassa­ lenges of peacetime. Economists and many replaced by old age-anxious, bitter, self­ dor to Luxembourg under Presidents Nixon politicians of course made dire predictions. deprecating. Americans of my generation and Ford, Dr. Farkas has served the Center When war production ended, they claimed, could hardly believe what they had wit­ selflessly for the past 6 years. Thank you, recession would follow. Massive Govern­ nessed-from victory in world war to vascil­ Dr. Farkas, for this fine plaque. ment intervention would be needed. Noth­ lation and self-doubt in less than two dec­ Bill Marriott, our master of ceremonies, is ing of the kind happened. The economy ades. Younger Americans-Americans who a man whose business acumen I admire and began to grow. We were able to assist our had known nothing else-accepted it as a re-

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. May 15, 1986 EXTENSIONS OF REMARKS 11081 ceived fact that they lived in a Nation in de­ sumptions that have dominated strategic provided some advice. "We need cline. Few were proud of this Nation, most planning since the end of the War. There is someone ...," Kissinger said, "who will were bewildered. Even though we spent an irony here. Critics have referred to the take a big jump-not just improve on exist­ more we got less. Our trade picture was President as a Cold Warrior, a man whose ing trends but produce a new frame of mind, gloomy, our dollar weak, and many felt cap­ ideas are out of date. Now Ronald Reagan a new national atmosphere. . . . The issue italism itself was on trial. has asked a simple question: "Why not a de­ is not one technical program or another. This, then, is the background against fense that defends-a defense that actually The issue is a new epoch. If we get a new which Ronald Reagan took office as the protects our people by keeping missiles from epoch and a new spirit, the technical pro­ 40th President of the United States. reaching the United States in the first grams will take care of themselves.' " Agree with him or not, virtually all ob­ place?" And with that question, the Presi­ Two decades later, Ronald Reagan pro­ servers admit that the President arrived dent who is supposedly behind the times duced just that, a new epoch and spirit. I with a coherent plan of action and moved at has made his critics look old-fashioned­ would add that President Reagan's vision is once to put it into effect. On the economic they still want the threat of mutual destruc­ not only new, but ancient-as ancient front, the President cut taxes dramatically tion as a deterrent. indeed as Athens and Jerusalem. For at its and asked the Federal Reserve Board to The fruits of the President's foreign most fundamental level, President Reagan's steady the growth of our money supply to policy are already clear. In the more than 5 vision is the vision of all Western civiliza­ bring inflation to an end. He curtailed the years since he took office, not one inch of tion-the belief in a just and loving God, in growth of Federal regualtions, de-regulated territory has fallen to the Communists, and individual responsibility, in the importance financial institutions, and began using anti­ one nation, Grenada, has been set free. of the family. By reasserting, for example, trust policy to encourage competition and With our military strength re-established, the ancient belief in the goodness of cre­ benefit consumers. the President was able to hold a successful ation-a belief advanced in Genesis-Presi­ The result? A very difficult period of ad­ summit meeting with the Soviet leader, Mr. dent Reagan has reawakened our sense of justment, a recession of 18 months. Yet Gorbachev, and to invite Mr. Gorbachev to the goodness of our own people and land. since then, the return to economic health visit the United States for a second summit And by reasserting the ancient belief that has been dramatic: Forty months of eco­ meeting this year. At the same time, the history has meaning-that human existence nomic growth. Inflation down to roughly 3 President has extended material support to is a vast story ultimately unfolding accord­ percent. Interest rates down and Govern­ those struggling against the Soviet empire, ing to the will of its almightly Author­ ment bond rates back to the levels of the and now in Afghanistan, Angola, Cambodia, President Reagan has opened our eyes to early seventies. Close to 10 million new jobs. and Nicaragua, the forces of democracy are the importance of America's place and mis­ And the stock market competing with the winning new recruits. sion in this story, as the bastion of human bond market in setting one record after an­ In a wider sense, the United States has freedom in our time. other. once again become an economic and politi­ This restoration of a sense of meaning, I One of the President's economic achieve­ cal model for the rest of the world. Witness believe, has a great deal to do with the ments deserves special mention. On taking the establishment of democracy in six Latin recent emergence of so many new democra­ office, the President completely de-con­ American nations since the President took cies. Not long ago, it was the communist trolled the price of oil. This set off a search office. And witness the way in which the model that was attractive to much of the for new sources of oil and other forms of free-market aspects of the Reagan revolu­ Third World-Fidel Castro was a cultural energy in our own country which, when cou­ tion are being picked up around the globe. hero in Latin America and posters of Che pled with vast deposits of oil and natural China has moved to free markets dramati­ Guevara appeared around the globe. Those gas found elsewhere, forced down the price cally. The International Monetary Fund of us in Western democracies were puzzled. of oil. OPEC has been rendered largely inef­ and the World Bank are preaching market Why, we asked, does communism hold so fective, and it's once again possible to tank economic and equity financing as an anti­ much appeal for the Third World when it so up for under 10 bucks-Iaccoca in his Chrys­ dote to state socialism and large debts. In obviously requires the surrender of human ler and me in my Mercury. To be sure, some the Philippines, Jaime Ongpin, the new fi­ liberty? sectors must undergo a difficult adjustment nance minister, has said, quote, "I am philo­ The answer was that in many parts of the as a result of the new lower prices. But be­ sophically committed to the absolute mini­ world, the freedoms we enjoyed had never cause President Reagan set them free to do mum of government interference." And in been known. To quote the historian Christo­ so, consumers were able to use the free France, voters have supported freer markets pher Dawson, "In [many places] life has market to take on OPEC-and win. and more private enterprise. been short and hard and uncertain. . . . In Today, even the President's alleged eco­ Here at home, a profound change-a sea­ such a world the evils of totalitarianism nomic failing, the growth of the Federal change-has taken place in the mood and which shock the Western mind-its denial deficit, appears to be coming under control. outlook of the country. Indications of re­ of personal liberty, of freedom of opinion Yes, the deficit has grown quickly, and newed social health abound. Student test and free enterprise-are less we've been concerned about it. As a percent­ scores are up, crime rates are down, person­ apparent.... Communism demands age of GNP, however, the Federal debt has al donations to charity are running at an everything ... but in return it makes men grown for the most part in line with histori­ all-time high. The President of the United feel that there is a power watching over cal standards. And with the outlook calling States can go to a college campus and get them which is immune from human weak­ for continued economic growth, this-the cheered. As I noted earlier, Jeffrey Hart ness and is based on an unchanging founda­ deficit monster that just a few months ago wrote of the fifties, "By and large, Ameri­ tion of absolute principles." However false­ was supposed to swallow the Reagan Presi­ cans felt good about themselves and their ly, in other words, communism offered to dency-is beginning to shrink. Indeed, it country.... " For perhaps the first time in oppressed peoples a sense that their lives now appears clear that with Gramm­ the three decades since, this is once again had meaning. By comparison, Western de­ Rudman-Hollings assisting the process, the the case. We cheer our athletes in interna­ mocracies often appeared adrift, meaning­ deficit can be whittled down to zero if we tional competition, and applaud our mili­ less, gripped by anxiety and self-doubt. have the will to fight more spending. tary as they show our flag. Now, however, President Reagan has re­ In foreign policy, again, the President has Economic growth, a successful foreign stated the Western belief that democracy acted decisively. When he took office, Amer­ policy, a newly patriotic and self-confident represents, not just a way of organizing soci­ ica's underlying military structure-the Nation-why should this be? Is it that Presi­ ety for the production of wealth, but a factor on which all diplomacy depends-lay dent Reagan's policies are technically supe­ means by which men can participate in the in weakness. During virtually the entire rior to those of his predecessors? Is it simply life of their nation and in history itself. De­ decade of the seventies, we had failed to that Ronald Reagan is in some marginal or mocracy, he has made clear, is based upon make major capital investments in defense incremental sense better at his job? The ancient and coherent values. It arises from a and had barely met replacement costs. Our answer, I believe, has less to do with techni­ view of the universe as meaningful, and naval fleet, for example, had fallen from cal superiority than with the President's itself serves as a source of meaning for nearly a thousand ships to under 500. The most fundamental beliefs about this coun­ men's lives. President immediately set in train a rebuild­ try-in a word, with Ronald Reagan's vision As the President has reasserted these ing program, signaling the world that the of America. truths, the Soviet Union has become more United States was returning to the global Recently I came upon a passage that illu­ and more clearly, in the words of George scene in an active way. Today there is still minates this very point, the distinction be­ Will, "an invalid trapped in a bureaucracy much to be done, but our military strength tween incremental improvements and the drunk on a 19th century fallacy Marxism. has been substantially re-established, and matter of vision. Arthur Schlesinger writes ... It is a system being driven toward suffo­ we are once again universally respected. in his biography of Robert Kennedy that, cation and anemia. . . ." Far from burying In nuclear policy, the President's Strate­ before the 1960 debates between John Ken­ the United States, communism is burying gic Defense Initiative has challenged the as- nedy and Richard Nixon, Henry Kissinger itself. And from the green mountains of 11082 EXTENSIONS OF REMARKS May 15, 1986 Nicaragua to the green islands of the Philip­ 4:30-5:00 p.m. The President presents an and well versed in the relationships between pines, the world conflict has entered a new award for courage to a young cancer victim the SOl and nuclear deterrence, strategy, sta­ and perhaps decisive phase. Now it is democ­ and poses for photographs with a number of bility, and other key arms control aspects of racy that is on the offensive: the dictators, people, including-and nothing illustrates totalitarians, and state socialists who are on the variety of the presidential day more the program. Moreover, he demonstrates sig­ guard and fearful. clearly than this-the concert pianist Vladi­ nificant sensitivity to overriding questions such Permit me to turn now from the wider mir Horowitz and the middle-weight boxing as U.S. commitments to allies and the morality world to the White House and to Ronald champion, Marvelous Marvin Hagler. of nuclear deterrence. There is no better way Reagan, the man himself. The President's 5:00 p.m. The President leaves the Oval to describe Dr. Payne's contribution than the humor, his grace, the way he puts those Office for the Residence, under his arm a excellent foreword to the book written by Dr. around him at ease-all these are well thick folder of homework, including speech Zbigniew Brzezinski. Dr. Brzezinski has im­ known. But there is one aspect of the Presi­ drafts, issues papers, and a sheaf of docu­ dent that I would like to discuss on the ments for his signature. pressive credentials in the defense policy public record, an aspect that has struck me In the midst of days like this, the Presi­ arena, having served as National Security Ad­ again and again since becoming his Chief of dent remains affable and serene. He does so viser to President Carter and as a key adviser Staff, all the more forcefully on this point· because his mind is disciplined and resilient. to the U.S. Government for several decades. since the public perception-or rather the Perhaps more effectively that any other His objective, yet very complimentary fore­ public cliche-seems to me badly mistaken. man I have known, the President is able to word to Dr. Payne's book, follows: Let me speak for a moment of the Presi­ give his full concentration to the issue at dent's mind. hand; then take a deep breath, clear his FOREWORD Now, as the former chairman of a large mind, and give the same concentration to . It will do so control. Indeed, because Keith Payne is able revert to us upon the disso­ by allowing our negotiators to present their to weave offense, defense and arms control lution of the trust at our Soviet counterparts with two options, one into a single strategy this book will prove to mother's death. The follow­ mutually beneficial, the other particularly be a major contribution not only to the ing represents my one-third costly to the Soviet Union. debate over the SDI, but also to the much interest in the trust: The first option would be to renegotiate larger debate over the general direction that Colin A. Studds, III, Trustee Beatrice Studds, irrev­ ABM Treaty restrictions against the defense American strategy should take in coming ocable trust, under agreement dated Aug. 1, 1973 of retaliatory forces. In return for real re­ decades. No. shares-Security: Market value ductions in modern counterforce-capable 5,000.000-U.S. Treasury ICBMs, of which the Soviet Union possesses 13.875 note, due Nov. 15, the vast majority, the United States would FINANCIAL STATEMENT 1985 1986...... 5,000.00 agree not to proceed with deployment of its Common stock: strategic defense system. If the Soviet Union refuses this bargain the U.S. would HON. GERRY E. STUDDS 133-West Point Pepperell .... . 7,086.00 declare that the continued Soviet offensive OF MASSACHUSETTS 67-W.R. Grace ...... 3,283.00 buildup has placed in jeopardy supreme IN THE HOUSE OF REPRESENTATIVES 50-General Motors ...... 4,150.00 33-IBM ...... 5,066.00 American interests and that the U.S. conse­ Thursday, May 15, 1986 quently is compelled to withdraw from the 167-Detroit Edison ...... 3,173.00 ABM Treaty. Such an action would both re­ Mr. STUDDS. Mr. Speaker, I would like to 112-Munford...... 2,352.00 flect the truth concerning Soviet ICBM de­ submit my 1985 personal financial statement 183-Park Electro-Chemical... 3,300.00 ployments and be consistent with Article 15 for publication in the CONGRESSIONAL 167-Rogers Corporation ...... 3,841.00 of the Treaty governing legal withdrawal. RECORD. This statement is a complete disclo­ 67-Eastman Kodak ...... 4,020.00 Following withdrawal from the Treaty the sure of my 1985 income, assets, and liabilities 167-Toledo Edison ...... 4,008.00 U.S. would deploy a BMD system for protec­ 67-GTE ...... 3,484.00 tion of its strategic retaliatory capabilities. which I have done every year since entering This action would nullify the decade-long office in 1973. 133-Home Group ...... 3,866.00 Soviet deployment of counterforce-capable Congressman Gerry E. Studds' 1985 2. I own the following securi­ ICBMs. If the Soviet response was to in­ Financial Statement ties: crease its ICBM arsenal in an attempt to re­ Part !-Income 1985

: No. Shares-Security: establish its threat to our retaliatory forces, Salary ...... $74,892.00 Bonds: the Soviets would be engaging in a losing Dividends-See part II for de- $3,100.00-Lorillard, Inc. tailchase that would be excessively costly tailed explanation...... 1,262.00 67fs debenture ...... 2,666.00 for them. It would be easier and cheaper for Interest-See part III for de- 3,333.00-U.S. Treasury 12 the U.S. to augment its defenses and restore tailed explanation...... 2,208.00 percent, May 15, 1987 ...... 3,333.00 the survivability of its retaliatory capability Honoraria-See part IV for de- Common Stocks: than it would be for the Soviet Union to at­ tailed explanation...... 2,750.00 40-Burlington Industries .. . 1,520.00 tempt to overturn those defenses through 347-Exxon ...... 19,432.00 an increase in its offensive threat. Total income...... 81,112.00 200-PBA ...... 00.00 In order to pursue such an approach to Part II-Dividend income 1985: 3. Our family home in Cohas­ strategic defense and arms control the No. Shares-Security: Income derived 1985 set, Massachusetts, with an United States must revise the current orien­ 40-Burlington Industries ...... 66.00 estimated market value of tation of the SDI. The Reagan Administra­ 347-Exxon...... 1,196.00 approximately $300,000 is tion has focused the emphasis of the SDI on owned jointly by my broth­ those "exotic" technologies that might one Total...... 1,262.00 er, my sister and me. My in­ day provide effective protection for large Part III-Interest Income 1985: terest in the home there­ urban areas. It has given less emphasis to Bonds-Security: fore, is roughly 100,000.00 the near-term potential for the defense of $3,100.00-Lorillard, Inc. 61fs selected strategic retaliatory forces-al­ debenture ...... 213.00 4. Bank Accounts: though there is general agreement that 3,333.00-U.S. Treasury 12 a. NOW account, First Na- such defensive capabilities are now or soon percent, May 15, 1987 ...... 400.00 tional Bank of Boston ...... 850.00 will be in hand. To provide the necessary Bank accounts: b. NOW account, American impetus for real Soviet offensive arms re­ Bank of Boston ...... 55.00 Security Bank ...... 1,500.00 ductions, the SDI must convince Moscow's American Security Bank c. Money Market Account, leadership of our capability and willingness ...... 1,540.00 American Security Bank ..... 11,000.00 to deploy a strategy defense system soon if d. NOW account, Seamen's it continues to reject significant limitations Total...... 2,208.00 Savings Bank ...... 100.00 11084 EXTENSIONS OF REMARKS May 15, 1986 5. Two bedroom house in Pro­ The Forum has already stimulated impor­ <3> Meanwhile at home, we should econo­ vincetown, Mass., estimated tant departures in national education mize on the time and political energy we market value 400,000.00 policy. Now I hope you will be as persistent spend on secondary problems. 6. Efficiency Condominium and successful in the field of competitive­ To explain staggering trade deficits of Apartment, Washington, ness. It is an honor to take part in your recent years, we have to look beyond the DC estimated market value 52,000.00 work. ways in which foreigners close their mar­ 7. 1981 Chevrolet Caprice 4,600.00 I. WE HAVE A CRISIS kets ... and abuse our hospitality. After 8. 1985 Jeep Wagoneer 15,400.00 all, last year, less than one percent of the 9. IRA-Fidelity Magellan I do not exaggerate when I say that inter­ national trade has become a matter of na­ total value of U.S. imports was even chal­ Fund 13,000.00 tional security. Our power in the world has lenged before the lTC. And in the vast ma­ Part VI-Liabilities 1985: become as much a function of the balance jority of the cases we probed, an affirmative 1. Mortgage, two bedroom Commission ruling would only have resulted house, Provincetown, MA, of trade as of the balance of terror. And our future depends as surely on our grain silos in marginally raising the price of imports, New Bedford Institution for not in eliminating them. Savings, approximately ...... 206,000.00 as on our missile silos. Yet while we are used to strategic think­ Thus, unfair trade practices of other na­ 2. Mortgage, efficiency condo­ tions, however, vexing to individual U.S. in­ mmmm, Washington, DC, ing about defense matters and strategic planning for corporate policy, we have set­ dustries, are not the chief menace to Amer­ Home Unity Savings and ica. It's time to recognize this reality. That Loan ...... 41,000.00 tled for improvisation in international com­ merce. The result is crisis-six years of is item three on my list. record trade deficits and a seventh big one (4) My fourth wish is that we move on the way. The more important trade has beyond improvising trade policy. We should AMERICA'S COMPETITIVENESS become to our economy, the less well it begin by fully examining the costs and ben­ seems we are performing. efits of all our options before, not after, we HON. DON BONKER The dimensions of the crisis, however, are act. For instance, last December the lTC found that the President's steel import re­ OF WASHINGTON now producing pressure for response. Speak­ ing for myself and not the Commission I straint program-if it works as planned­ IN THE HOUSE OF REPRESENTATIVES head, I'd like to outline six specific re­ will cost U.S. exporters of steel-containing Thursday, May 15, 1986 sponses we should pursue and some broader products over $15 billion. The higher costs issues we must face. It will be up to you to for steel they will face here will translate Mr. BONKER. Mr. Speaker, last month, a decide whether my advice is bad enough to into higher prices for their products and number of business leaders, university presi­ qualify for a big publisher's advance. hence lost sales-abroad. Unfortunately, dents, and Members of Congress gathered at II. REAL REMEDIES FOR U.S. TRADE PROBLEMS this calculation of export disadvantage was Hot Springs, VA, to· discuss one of the most requested and aired only well after the I'll present my ideas as a wish list, remem­ vital and challenging issues of our times­ import restraint program was underway. bering the old proverb: "If wishes were <5 > Wish number five is that we change America's competitiveness. It is an issue that horses, beggars would ride." Since it's after touches every aspect of this Nation's institu­ the way we approach legislation affecting dinner, this beggar will gallop. trade. Historically, we have written trade tions and our declining position in the interna­ <1) Item one on my wish list is a real com­ laws, not competitiveness legislation. As we tional economy. Those of us who attended mitment to consider the international ef­ have worked to liberalize international com­ the conference dealt with the range of issues fects when we set domestic monetary and merce, we have also created exemptions or that contribute to our national potential and fiscal policy. American industry and agricul­ shelters for declining or particularly power­ what we need to do as a Nation to restore our ture were put on a five-year long roller­ ful domestic industries. coaster. ride by policies which ignored, yet competitive position. Many laws offer U.S. claimants relief from indirectly fanned the value of the dollar. the strain of trade competition. But an ap­ The reports and recommendations that will Last fall, the Administration changed its be forthcoming from the Hot Springs confer­ proach that focuses narrowly on imports tune, and there has been a healthy, if over­ often overlooks more basic causes of com­ ence and three previous sessions on competi­ due, weakening of the dollar. petitive decline. tiveness around the country will help to lay But even so, we will not easily or painless­ (6) My sixth wish is that the law be the groundwork for the task before us all. ly recoup the jobs we lost at home and the changed to require that when the lTC rec­ The keynote address was given by the sales we missed abroad. The dollar's decline ommends relief, we give the President more Chairwoman of the International Trade Com­ cannot completely "solve" our trade prob­ than the current take-it-or-leave-it option. mission, Dr. Paula Stern. More than anyone lem. It will have an impact on our Japanese The President should have a broad and deep and European Community accounts, but range of choices based on an industry's com­ else, Dr. Stern sees the evidence of our de­ Canada-our single biggest trading part­ clining competitiveness. Industries impeded by petitive position and its readiness to adapt ner-has devalued its dollar faster than to new conditions. imports-and often experiencing a loss of ours. With the present push for changes in our competitiveness-usually appear before the The dollar is also stronger-not weaker­ trade laws, it is clear that there will be bene­ lTC seeking relief. against the currencies of Mexico, Korea, fits for American industry. We have an obli­ While Dr. Stern and I may not agree on Taiwan, Hong Kong, Brazil, Venezuela, and gation to maximize the long-range returns every point, her address, "The U.S. Trade Australia. Thus, the overall decline of the from this public investment. And that can System and the National Interest: Can We Do dollar will not by itself solve all the trade only be accomplished by creating the possi­ problems we have been experiencing. bility of package deals that bring labor, Better?" offers a sobering account of our (2) The most prominent single economic trade problems and several thought-provoking management, and government into joint ef­ event of this year is the reverse oil shock of forts that increase productivity, flexibility, suggestions on how America could recover 1986. Since oil is priced in dollars, this de­ and new investment. her competitive position. cline in price will be magnified for those We need not finance such efforts with I hope my colleagues will take time to read countries whose currencies have appreciated new taxes or greater deficits. Instead of the text of Dr. Stern's address: against the dollar-Japan, West Germany simply giving away import quotas to Japan, and the remainder of the European Com­ THE U.S. TRADE SYSTEM AND THE NATIONAL Korea and other nations, we should be auc­ munity. tioning them. In addition to financing ad­ INTEREST: CAN WE Do BETTER? Growth in these economies will increase justment here rather than abroad, auctions their domestic demand, help restrain their would put a concrete price tag on import Thank you for including me in this im­ exports, and possibly stimulate imports relief, make the whole importing process pressive gathering of thinkers and doers. from the U.S. But these countries need not more predictable, and ration quotas more Analysis and action tend to get separated have waited for the fortuitous oil glut. efficiently. By adding positive relief to the in official Washington, and as David Stock­ Having waited, they are still not doing negative relief accorded by quotas, an auc­ man admits, even in Washington's officials. enough. tioning system could make it possible to When the payoff for bad policy advice is a So my second wish is that we continue to achieve the same overall level of assistance big publishers' advance, it may be time to pressure the governments of Japan and to U.S. firms and workers with less restric­ move your Forum from temporary quarters Europe to adopt more expansive economic tive quotas. in Virginia to permanent location on the policies. If we are successful, there will be a north bank of the Potomac. As a Southern­ welcome bonus for the indebted third world, III. TRADE AND THE NATIONAL INTEREST er, and a Washingtonian, I would be happy which could then look to other markets for I have given you six wishes. I hope you to offer you hospitality. increased export sales. will let me take one more roll of the dice. May 15, 1986 EXTENSIONS OF REMARKS 11085 The character of my wish list raises a very shipped to southern California from Austra­ MIMI SILBERT AND DELANCEY broad question which troubles me deeply lia cheaper than it can be shipped from STREET and with which I would like to close. Do we northern California. And in many areas, it is have a trade policy which reflects our true cheaper-even with the decline of the national interest? dollar-to buy foreign steel products be­ HON. MEL LEVINE Let me cite some specific practices and cause ocean transport from Europe or the their unintended, unexamined conse­ Far East is cheaper than barge transport in OF CALIFORNIA quences. The first is technology transfer, the U.S. We seem to be cutting off our noses IN THE HOUSE OF REPRESENTATIVES the not-so-innocent passage of our know­ to spite our faces. Thursday, May 15, 1986 how to our partners and rivals. A careful new look at this politically and Export deals, particularly military sales, Mr. LEVINE of California. Mr. Speaker, as often depend on barter arrangements. They emotionally loaded subject could come up regularly include obligations for transfer with changes that would foster competitive­ part of a series on drug abuse, a remarkable abroad of U.S. technology. Between 1980 ness of regional industries in the U.S., pro­ person and an extensive innovative drug reha­ and 1984, such offsets resulted in new or en­ tect legitimate national security interests in bilitation program were featured in yesterday's hanced production of civilian aircraft or a merchant marine, and quite possibly even Washington Post. components by seven of our trading part­ stimulate employment of our seamen. As it The person is Dr. Mimi Silbert, one of the ners. Likewise, we have spread American stands now, our regional industries, mer­ most talented people I know, and the program technology to foreign electronics, communi­ chant marine, and shipbuilding all suffer. cations, steel and machinery industries. We can do better by all three. is called the Delancey Street Foundation. This kind of transfer is on the rise and so Let me close with one subject that is for Mimi Silbert and Delancey Street should is the competition it fosters. It poses obvi­ good reason a part of the liturgy of every serve as both an inspiration and a model for ous long-term economic implications. We American trade official. Consider Japan, others. · need to examine more closely the costs and which has a fundamental problem in the I commend the Post article to my col­ benefits of the "free" flow of knowledge. imbalance between its huge savings and rel­ leagues for their review and consideration: Another example: much of our diplomatic atively low domestic consumption. DELANCEY STREET: FOR A FEw ADDICTS, A 4- effort with countries like Brazil, which I vis­ The result is a flow of Japanese capital ited in January, has been devoted to pro­ abroad rather than an inflow to Japan of YEAR LESSON IN LIVING tecting entry rights for U.S.-based multina­ exports from the U.S. and Europe. Yet, the BREWSTER, NY.-ln a 19th century oak­ tionals. They want to expand overseas sub­ Administration has in the past expended its paneled dining room, before a long table set sidiaries which may well wind up exporting diplomatic capital with Japan on serious, with sterling silver, 75 drug addicts jostled to the U.S. but nevertheless less important market for standing room. We push hard for that access and not All eyes were fixed on a small woman with enough on opening up heavily protected access issues. We must find new energy to press the Jap­ a broad, ironic smile. "Good afternoon," Third World markets to exports of goods Mimi Silbert said. The group returned the made in the U.S. Our negotiators seem to anese to make whatever changes are neces­ greeting in unison, and then broke into despair that it is a hopeless task. The banks, sary to encourage greater consumption. The laughter. Silbert, president of the Delancey understanding how debtor nations pay their exact way that "keeping up with the Jon­ Street Foundation drug rehabilitation pro­ loans, want to see countries like Brazil eses" will get translated into "keeping up gram, was already playing the room like a import less and export more. But the stakes with the Tanakas" is of course a Japanese violin. are too high to assume that our national in­ affair. But the necessity of doing so is a fact The surroundings-a Tudor-style mansion terest is best pursued by making life more of life given current international trade set in 92 wooded acres about 70 miles north comfortable for our diplomats and bankers. flows. We can only hope that Prime Minis­ of -seemed impossibly opu­ Now that our domestic firms once again ter Nakasone's visit will help speed the proc­ lent for a drug treatment program. But they are moving into position to challenge for­ ess. But this kind of change will not come reflected Delancey Street's style, as well as eign producers on their home turf with easily to Japan; real progress requires con­ its success at turning drug problems into goods made in the U.S.A., do we really want tinuous pressure from all Japan's trading manpower, all the while shunning govern­ to trade that competitive revival off for the partners. ment money. right to establish new U.S. subsidiaries These examples show that we have yet to The money that residents make selling abroad? Where does our real national inter­ develop a deep understanding of where our stenciled coffee mugs to university book­ est lie? national interest lies. We are even further Not all of our miscalculations of national stores, moving furniture with Delancey's interest are new in origin. Since 1789, Amer­ from a trade policy consistent with that in­ fleet of trucks, or building ornamental ican law has discriminated against foreign terest. However troubling, we should not be planters at the foundation's factory puts shipping to favor domestic shipping in our surprised that there is apparently no clear food on the table-and working capital into coastal trade. But in the process, it has also expression of America's national interest in the foundation's budget. In turn, addicts discriminated against other U.S. industries its trade policy. After all, only in the past and criminals get a taste of what it's like to by raising their transport costs, while leav­ year has there been a serious appreciation lead a normal, workaday life. ing untouched their foreign competitors of the need for a national trade policy, one Nearly one of every three residents here who can send their wares directly to U.S. on an equal footing with macroeconomic was convicted in D.C. Superior Court of sell­ ports in foreign bottoms. and foreign policy. ing drugs, prostitution or violent crimes The present day incarnation of this sacred The time has never been better for chang­ such as robbery or assault. They were cow comes in the form of the Jones Act. It ing course. The political debate has placed on probation to come to Brewster, requires that all intracoastal trade be con­ switched gears away from the illusion of and before they are deemed ready to return ducted in vessels built in and documented protection and toward the reality of compe­ to society, most will spend at least four under the laws of the United States, and tition. The second wind of the present re­ years in one of three Delancey facilities in owned by American citizens. The restric­ covery has given us unique possibilities of California and New Mexico, or in this 30- tions are intended to provide for the nation­ implementing a long-term perspective room, renovated castle. al defense and the growth of foreign and do­ before the next recession again inevitably During that time, they are supposed to mestic commerce. narrows our vision. learn to read and write; cook a meal or lay But the tab for the Jones Act now goes We have some difficult work ahead in bricks; drive a truck or keep books. When well beyond the increased opeating costs it forging a trade policy to replace our outdat­ they sit down to dinner, there might be oys­ foists on users of domestic transport. Ocean ters or snails on their plates. Silbert con­ freight costs have fallen so dramatically in ed passive approach with measures that tends that exposure to the finer and more the last 25 years that the Jones Act itself truly promote our national interest. The exotic things in life takes some of the fear has now become a significant impediment to issues are so fundamental that they will out of being an addict, fear of a larger world supplying many regions of the U.S. with do­ only be clarified when they are presented to that for them seems full of complications mestic rather than foreign products which the entire body politic, rather than just the and problems too big to overcome without are carried in much cheaper foreign bot­ handful of insiders who have until now gen­ using drugs. toms. erally monopolized discussion of trade "Our peale who stay here have to do four At the lTC, we have seen sugar coming issues. years just like Harvard," said Silbert, 44, a into New Orleans from Europe rather than I hope you will join in sorting out the criminologist and psychologist who once Florida in large part because the shipping issues we as a nation must face together. counseled offenders at Lorton Reformato­ costs were cheaper from Europe. Cement is Thank you. ry's Youth Center. 11086 EXTENSIONS OF REMARKS May 15, 1986 "NEVER LEARNED TO MAKE THEIR WAY" haven for immigrants at the turn of the can in fact find herself with fewer resources "We're dealing with a lot of people who century. Silbert said she adopted many of because she has chosen to work in an effort have never learned to make their way legiti­ the ideas for Delancey's self-supporting in­ to become less dependent upon public aid: mately or successfully into American socie­ dustries from what she saw while visiting an It is not uncommon in to ty. We teach them how to do it on the as­ Israeli kibbutz. find a 20-year-old woman who is single, has sumption that you can then reject anything She sees addicts as people trapped in a a three-year-old child, and receives AFDC in society you don't like, but not because cycle of guilt, self-hatred and destructive be­ benefits in the amount of $301.00 a month you don't know about it." havior who don't know how to cope or live and $125.00 a month in food stamps. This is Each morning there is a new vocabulary with other people and who desperately need the maximum amount of AFDC and food word to learn-"ghetto talk" is strictly pro­ to learn traditional American values. stamp benefits an individual can receive in hibited. Breakfast call comes at 7:30 a.m., The surroundings at Brewster might be North Dakota for a two person household and for the rest of the day it's work at one lush, but residents, she maintains, are doing with no other source of income. Typically, of the several industries, supervised by more more penance than if they were locked in a this woman's only employment opportuni­ experienced residents. cell. They must finally take responsibility ties are less than full-time employment at At Delancey's four facilities there is only for their lives. minimum rate. If she works 30 hours per one paid employee: Silbert. The rest of the "Prison does not give anyone a sense of re­ week for a minimum wage of $3.35 per hour, job of managing the foundation's properties sponsibility. It's the exact opposite," she her gross income is $432.15 per month. This and business is left to the residents them­ said. "You see a cell in the prison system income will affect her and her child's AFDC selves, the most successful of whom move to and its disgusting, but it's not necessarily the hardest punishment for a person and food stamp benefits substantially, as the top of the Delancey hierarchy and the can be seen on the attached chart. The most coveted rewards, a private room and coming from a world these people have come from. working mother made $36.15 for the first dating privileges. four months. The next eight months actual­ The 23 D.C. convicts at Brewster, many of "Our punishment is much worse. It's that you work." ly cost her $12.85 per month to work. After them unable to get into packed programs one year, it cost her $32.85 per month to near Washington, found out about Delancey work. Street through their attorneys or from the It is also noteworthy to remember that brochures the foundation sends to the D.C. DISINCENTIVES TO EMPLOYMENT full-time employment would exacerbate this Jail. problem even more for this woman. Most graduates go on to lead successful This situation is not atypical. We solicit lives, Silbert said, because they must have HON. BYRON L. DORGAN your support in alleviatii}g the problem of three skills and a job before they leave. So OF NORTH DAKOTA far, though, none of the D.C. enrollees has disincentives to employment for AFDC par­ been in the program long enough to gradu­ IN THE HOUSE OF REPRESENTATIVES ents. We sincerely hope you will involve ate. Thursday, May 15, 1986 yourself in what we perceive to be a mean­ Started in San Francisco by four addicts ingful reform of the welfare system. 15 years ago with a $1,000 loan, Delancey Mr. DORGAN of North Dakota. Mr. Speaker, We feel that there must be a better design Street prefers to take serious criminals, re­ job layoffs, illness, the death of a wage to the system towards the goal of assisting jecting only sex offenders. Silbert said she earner, the closing of a plant, the failure of a and encouraging AFDC recipients who want joined the group after being asked to help crop are some of the factors that can trigger a to work with more generous transitional in­ write a proposal for a government grant, family's becoming poor; all are events beyond centives which will save taxpayers money in and later took full charge. She tries to the control of an individual. We need to be the long run. accept all who apply, although she has had sure we are there to help that person or that We would be interested in your feelings about the matter of incentives/disincentives to close the doors to some in the past year family to be able to help themselves as soon because of a crush of applicants. for AFDC parents wanting to work. We Melvin Peoples, a 32-year-old heroin as possible. We cannot do that when we are would also be interested in knowing if you addict and drug peddler, took the train to actually providing disincentives to work. are aware of any efforts within Congress, Brewster from Washington last year after a The Grand Forks Committee on Human the Department of Health and Human Serv­ Superior Court judge placed him on proba­ Needs recently addressed the disincentive our ices, or the Administration to deal with this tion following Peoples' guilty plea to a current AFDC and Food Stamp system im­ problem. We would be happy to meet with charge of trying to kill his wife. poses on parents who want to work but have you or your staff at some mutually conven­ "I didn't know where to go," said Peoples, dependent children and no one to take care ient time to explore the situation further. who was turned away from at least three of the children. Thank you very much for your consider­ programs in Washington. "Either they were ation and assistance. full up or they wouldn't accept me." Attached is the report of the Mayor's Com­ Sincerely, Now he is helping to install electrical mittee on Human Needs. This information ELIOT GLASSHEIM, wiring at the expanding Brewster complex, should help us when we formulate policy on Major's Committee on Human Needs. aiming to become a master electrician. "I'd how to provide incentives to people to move Eliot Glassheim, Chairman, Quad been in it [drugs] for a long time. And this from the welfare roles to the payrolls. County Community Action Agency; has given me a chance to see the other side, April 8, 1986. Rosie Black, Vice Chair, Citizen Rep­ how it is without any heroin, without the Representative BYRON DoRGAN, resentative; Renee Moon, Secretary, craziness of the streets." House of Representatives, Washington, DC. Grand Forks Public School, Special Joe Henery, 39, who grew up around 14th DEAR REPRESENTATIVE DORGAN: We are a Services; David Braaten, Grand Forks and U streets NW, was peddling drugs and group of concerned citizens who serve on County Social Services; Tim Heisler, stealing purses out of offices to support his the Grand Forks Mayor's Committee on North Dakota Job Service; Robert addiction when he was caught driving a Human Needs. The major goal of this com­ Sanderson, Northeast Human Service stolen car. He was placed on probation to mittee is to address the concerns of the poor Center. enter Delancey Street last year and said he and disadvantaged groups in our city. A con­ Ron Volden, United Way; Bob Gustaf­ sees this as his last, best chance to go cern with which the committee has been son, Grand Forks Chamber of Com­ straight. He's got a carpentry job, turning struggling is the disincentives to employ­ merce; Dennis Johnson, Grand Forks one of the estate's outbuildings into an ment for parents receiving Aid to Families City Council; Margaret Olmstead, office. of Dependent Children