21166 EXTENSIONS OF REMARKS September 20, 1989 EXTENSIONS OF REMARKS MAJORI'rY LEADER RICHARD A. fective, and more cost-efficient than the the rescheduling of Polish foreign debt, in GEPHARDT URGES SUPPORT status quo reliance on hardware alone. This cluding Poland's official debt to the U.S. FOR DEMOCRACY IN POLAND is one of those situations in which doing the government. AND HUNGARY right thing will also save us money. We must instruct our delegates at the Democracy in Poland is still fragile; the IMF and World Bank to develop substantial link between economic and political reform and timely financial support for Poland's HON. TOM LANTOS is essential. One-third of the Polish people economic reform program. OF CALIFORNIA remain in poverty; the waiting period for an We must allow the Overseas Private In IN THE HOUSE OF REPRESENTATIVES apartment may be 30 years; food lines are a vestment Corporation to approve insurance fact of everyday life. Unless there are visible for investment projects in Poland, which Wednesday, September 20, 1989 improvements in basic living conditions, would provide an important incentive to pri Mr. LANTOS. Mr. Speaker, we are facing a there is little hope that democracy will sur vate Americans to help the effort for Polish vive. recovery through private investment and historic turning point. Unprecedented changes Now is not a time for the niceties of book that are taking place presently in Eastern joint ventures. keeping; now is the time for imagination We must expand assistance to democracy Europe which provide the United States a and innovation. Visionaries do not wear enhancing institutions in Poland, such as unique opportunity to influence positively the green eyeshades. The President's proposal AFL-CIO and National Endowment for De course of events in that important region of $100 million for a Polish-American Enter mocracy programs to support Solidarity. the world. prise Fund and a couple of smaller pro We must encourage Eximbank, the Com Today the Foreign Affairs Committee's Sub grams-is a first step, and I am pleased to modity Credit Corporation, and the Trade committee on Europe and the Middle East co-sponsor his legislation. But it is clearly Development Program to initiative appro held an important hearing on legislation to en an inadequate response to the challenge at priate new programs in Poland. hand. We must make Poland eligible for duty re courage democratic development in Eastern While we are waiting, others are acting. Europe. House majority leader, Congressman ductions under the Generalized System of Although not seeking, nor suited for, the Preferences, enhancing Poland's commit RICHARD A. GEPHARDT, made an outstanding role of leader of the free world, Japan and ment to export-driven development. statement to the committee urging bold and Western Europe are being forced into the We must assist private U.S. groups to con imaginative American Government action to vacuum created by our inaction. Under the tribute to Polish recovery, using as a model foster these trends. direction of George Bush and his predeces the outstanding work of the Rockefeller Mr. Speaker, I insert the majority leader's sor, we spent more than two trillion dollars Foundation and the Ford Foundation to to be able to project American strength revive the Polish farm sector. testimony in the RECORD, and I urge all of our through our military might. But the harsh colleagues to give it serious and thoughtful at reality, as we approach the 21st Century, is Finally, drawing on the Administration's tention: that true strength is measured in mega designation of Poland as an AID recipient Mr. Chairman, I'm pleased to have this bytes-not megatons. country last week, we must activate a varie opportunity to testify before the Subcom The President has focused on what we ty of small but important bilateral and mul mittee on Europe and the Middle East ex can't do to help Poland. He says we can't tilateral assistance programs. These include ploring possible U.S. responses to the histor risk offending the Soviets; we can't spend training and education programs to provide ic changes now taking place in Poland and more money; we can't establish precedents the skills needed for a modern economy. Hungary. that would apply to other countries. We The most important immediate action we The work of this Committee will have a need to tum this thinking on its head-what can take is to begin shipments of food aid. profound effect on the lives of the people of we cando. In 1948, when the Soviets were constructing these two countries, and a dramatic impact In several key areas, this Committee has the Iron Curtain across Europe, Harry on the future of Europe and East-West rela developed and the House has approved Truman responded with the Berlin Airlift to tions. imaginative programs to assist Poland, espe bring essential commodities into that divid The Communist world-led by Poland and cially in HR 2550 and the foreign aid au ed city. Today, when we have a chance to Hungary-is moving rapidly away from thorization bill. I believe that this Commit bring down at least a part of that Curtain, Marx and Lenin and toward Madison and tee should mold these programs, the Admin we must respond with similar dedication. Lincoln. The selection of a non-Communist istration's proposal, and other good initia American corn, wheat, and other surplus Prime Minister, the legal recognition of the tives together into an eleven-point Poland commodities must begin to flow into Poland Catholic Church, and the moves towards Economic Recovery Initiative. by the ton. We must provide immediate pluralism and economic reform have created I would like to briefly outline for you the relief for food lines and demonstrate clearly opportunities unthinkable just a few years specific proposals that I believe should be to Poles the benefits from a new pluralism. ago. And yet when George Bush went to part of a combined assistance package for We must act immediately to help relieve Poland this summer, he was like a poker Poland. Then I would like to focus on a few Poland's debt burden. At the World Bank player with a winning hand, but no chips of them. and IMF meetings later this month, we and no nerve-to back it up. The first step is to give the Administra must push for adoption of a coordinated, The Polish leaders essentially told the tion every penny it is asking for: an authori sympathetic view toward Poland. President, "Replace Martial Law with a zation of $100 million. Used creatively as The Paris Club should consider proposals Marshall Plan." Soviet President Gorba seed money to encourage a coordinated to reduce interest rates on official debt, chev, facing increasing economic pressures Western effort to foster private sector de stretch out debt servicing, and limit repay at home and anxious to shed the costs of his velopment and pluralism, this can go a long ment to a portion of Polish foreign ex Eastern Empire, signed off on the deal. But way. But we must do far more. change earnings, with a commitment by the when Lech Walesa asked him the $10 billion We must expand the $10 million already Polish government to use additional ex question, the President could only give a in the House appropriations bill for Poland change for economic restructuring. $100 million answer. next year as a down payment in support of The IMF should then launch a stand-by How ironic it is that at the very moment the Administration's Private Sector Initia program to help Poland weather the storm when American ideals of democracy and tive. We need to get these funds flowing of painful economic reforms. The World economic freedom are sweeping the globe, quickly to encourage private development in Bank should chip in with loans to make America's ability to support these changes is several key sectors of the Polish economy. social improvements in hosing, health care, starting to decline. We should immediately ship large quanti and the environment. The United States We can now enhance our national securi ties of surplus American food to Poland, must not be perceived as being dragged into ty, not through expensive and dangerous tying this aid to the development of pro these measures, afraid of the precedents we strategic systems, but by helping the Polish grams to encourage Polish agriculture. might establish: we must lead the effort. people break through the Iron CUrtain from We must instruct our delegates at the Next week, when Secretary Baker meets their side. Such a policy is cheaper, more ef- Paris Club to support relaxed conditions for with the Soviet Foreign Minister, he should
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. September 20, 1989 EXTENSIONS OF REMARKS 21167 point out our stake in Polish recovery, and BIRTHDAY GREETINGS TO THE difficult to find, hidden from view and urge the Soviets to suspend repayment re HONORABLE WILLIAM H. mind. Like an all-knowing maharishi high quirements on the $3 billion which Poland NATCHER atop the Himalayas, we should have to owes them. struggle to discover the wonderful elixir of Finally we must gear up many U.S. offi victory. cial and private programs. Since the remov HON. GLENN M. ANDERSON Surely it bubbles in tiny Animas, New al of sanctions, the pace of contact has not OF CALIFORNIA Mexico, where the Panthers have run their picked up as it should. Cultural and scientif IN THE HOUSE OF REPRESENTATIVES winning streak to 53 games now-the long est in the high school football nation. ic exchanges; projects of private voluntary Wednesday, September 20, 1989 agencies; perhaps even the Peace Corps Animas is just an intersection on Highway these and other people-to-people programs Mr. ANDERSON. Mr. Speaker, for those 338, really, where kids from Cotton City and must begin. Poland has opened its door to that were not aware, September 11, 1989, Road Forks and Apache gather-180 stu the community of nations. These contacts marked the birthday of an institution within this dents in grades seven through 12. But 80 institution. The Honorable WILLIAM H. NATCH percent of the boys play football, and play can help ensure that the door will not be it as good as any team in the nation, in any slammed shut again. ER, who recently cast his 16,000 consecutive division. Regularly, they schedule much, Mr. Chairman, I know the budgetary and vote since his arrival in the House of Repre much larger schools for two reasons. One, institutional constraints that you and this sentatives, celebrated his 80th birthday. In nobody is much smaller. And two, only the Committee will face in putting together a honor of this occasion, I would like to submit big schools will agree to play them. It is not comprehensive response to support Polish the following letter to the CoNGRESSIONAL uncommon to drive four and five hours for a democracy and economic reforms. But the RECORD: game. eyes of history are upon us. In 1776, Ameri Animas, New Mexico, farms and ranches, ca's hour of greatest need, Poland sent HOUSE OF REPRESENTATIVES, Washington, DC, September 11, 1989. copper smelting on the continental divide heroes like General Pulaski to help us fight Hon. WILLIAII H. NATCHER, ... there is not a rock-and-roll radio station for our freedom. And history will indeed Rayburn House Of/ice Building, within reception distance. The boys can buy judge us harshly if, in Poland's hour of Washington, DC. hot sandwiches and soda on credit at Duna greatest need, we can offer nothing but an DEAR CONGRESSMAN NATCHER: I was quite gan's after practice. Friday mornings, Billy empty hand in return. impressed the day that you cast your Henson meets his senior players there for 16,000th consecutive vote since your arrival breakfast. One more rule, no football talk; here in Congress. However, I find it even 53 straight wins. You would picture Animas High School a AsSISTAlfCE PACKAGE FOR POI..AND more impressive that today marks your 80th monument to the spoils of victory. But the 1. Provide an authorization of $100 million year
29-059 0-90-30 (Pt. 15) 21168 EXTENSIONS OF REMARKS September 20, 1989 tunately for the citizens of Ohio, he was sen blamed on the same suspect. The officer laws only to the specific agencies with exper tenced to life in prison plus an additional hoped, as the couple had, that the odds tise in the relevant subject matter. OMB has 2,715 years. would favor a repeat use of the same loca tion, where incriminating evidence might be no statutory right to alter the decisions of the Mr. Speaker, I would like to enter into the gathered. agencies empowered by Congress to protect RECORD the text of the resolution passed by The long shot paid off. Physical evidence the public's health. Therefore, as far as I am the Fraternal Order of Police and an editorial linking the suspect to a subsequent rape was concerned, OMS's so-called "regulatory from the Columbus Dispatch which highlights obtained. Columbus police now believe they review" activities over the last 8 years are ille the dramatic case of the handcuff rapist. have the man whom they earlier dubbed the gal. FRATERNAL ORDER OF POLICE RESOLUTION "handcuff rapist" in custody. Police think the suspect may have been involved in 60 or One of the most troubling aspects of OMS's Whereas law enforcement officers have more rapes. review of regulations is the secrecy in which it numerous traffic safety and crime control It's impossible not to admire the courage takes place. Behind closed doors, nameless responsibilities, and and tenacity of the parents who went to and faceless OMB employees-using the Whereas front and real license plates are such incredible lengths to see Justice done. powers granted them not by statute, but by recognized as an important law enforcement Yet, their actions are not the kind the tool in the performance of their duties, and executive order-have forced expert agencies police would advise. The risks are great. At like the Food and Drug Administration to alter Whereas the elimination of the front a press conference Friday, the couple plate has serious consequences for protec stressed that they would not recommend regulations. Often these orders are issued tion of the general public and our officers, that the parents of other crime victims over the phone, with no documentation of the and pursue suspects. communication. Whereas some states have considered Although the couple succeeded in con While reasonable persons may disagree eliminating the front plate: Now, therefore fronting the suspect, the mother admits, over the proper scope of "regulatory review," belt "Everything went wrong," and imagine the I hope we can all agree that our system of Resolved, That the Board of Directors of father's dilemma. How many men whose the Grand Lodge, Fraternal Order of Police, open, participatory democracy demands that daughter had been viciously raped and his Congress and the public be provided access hereby opposes efforts to eliminate the wife attacked by a person he believed to be front plate and encourages adoption of two the same man could have resisted pulling to the record of OMS's influence in regulatory license plates in one plate states, and be it the trigger at some point? Yet to have done decisionmaking. The Administrative Procedure further so could have led to grave consequences, not Act and fundamental principles of constitution Resolved, That the Board supports legisla only for the father but for the investigation al law demand as much. tion or administrative action which mini to which he made a vital contribution. The Government Operations Subcommittee mizes the obstruction of license places or in Police also deserve credit in this case. As it creases visibility. on Human Resources and Intergovernmental unfolds, evidence officers collected com Relations, which I have the privilege to chair, bined with information from the couple and [From the Columbus Dispatch, Aug. 28, other rape victims have linked the suspect has documented numerous instances where 1989] to scores of attacks. OMB has influenced and interfered with the GOING THE ExTRA MILE So here is a case where going beyond the decisionmaking process in critical areas such For more than a year, the mother and ordinary appears to have paid off against all as food safety, the drug approval process, father of a rape victim put themselves at odds. Unusual effort by devoted parents. food labeling, and workplace safety. I enclose risk in the off chance that they could trap Unusual effort by a dedicated police officer. for the record a brief summary of some of the their daughter's attacker. The mother acted The suspect had spent 11 years in an insti cases of OMB interference that my subcom as a decoy while the father, armed with a tution for the criminally insane after being mittee has encountered in the past several pistol watched from a nearby car. convicted in the abduction-rape of an Akron years. The odds against their success were astro woman in 1972. He came to Columbus early nomical. That they would succeed and avoid in 1984. It's important to remember that My subcommittee is not alone in revealing being harmed was even less likely. this man is only a suspect at this point. The OMS's tampering with the regulatory process. The couple was driven by the mother's courts will decide his guilt or innocence. Cases of OMB meddling with the actions of rage and the belief that their daughter's It should be emphasized that it's not pru the Environmental Protection Agency, the Oc healing could never begin while the attacker dent to suggest that ordinary citizens take cupational Safety and Health Administration, roamed free. Consider the restraint the the route this mother and father did. and other health and safety agencies can be Taking to the streets, armed and in search father showed in not firing his gun as the obtained from a variety of committees and suspect fled. of someone who committed an assault At the outset, the couple had elected to do against one's child, is risky business. subcommittees in the House and the Senate. their own detective work, convinced that Yet, it's impossible not to salute these par Reauthorization of the Paperwork Reduction the understaffed Columbus Police Division ents for their courage and perseverance. Act offers a unique legislative opportunity to could not do it for them. "They industry, and tions, many-but not all of them-in the Santa period of service which must be completed to spend $50 billion over the next three Barbara community. before an employee has a nonforfeitable right years to liquidate or sell off hundreds of in In the interest of time and avoiding repeat to a pension, to 5 years for single employer solvent or marginal thrifts. It has been esti ing what is already clear, however, I will pensions. This means that employees must be mated that the law will cost at least $166 billion over the next decade, and will cost simply incorporate them by reference to my 100 percent vested after 5 years of service or, using an alternative vesting schedule, 20 per the average taxpayer about $3,100 over the remarks of May 28-that is, May 28, 1980- duration of the bailout plan. This is the on this same floor, when I then congratulated cent vested after 3 years and 20 percent for each year thereafter. In general, therefore, most important bill that the Congress has him on his work and career. passed this session. Reverend Hall, I only hope that I will be employees who have been covered by an eli Many Hoosiers have asked me why they able to stand here again in future years to gible pension plan for 5 years and work at must pay for this bailout. My view is that continue acquainting the Congress with your least 1 hour after January 1, 1989 are auto the Congress and the President must act as works, an inspiring reflection of Him under matically vested. quickly as possible to clean up the S&L in This change is particularly important for dustry and put the financial industry back Whom we all serve, and wish you Godspeed on its feet again. The problem is simply that in whatever the future may bring. women as it is estimated that approximately 1.9 million additional workers are now entitled millions of Americans have hundreds of bil lions of dollars in federally-guaranteed de to pensions. Multi-employer pension plans posits in badly managed thrifts. Depositors INTRODUCTION OF THE however, are not covered by these new vest must be assured that their savings are safe PENSION REFORM ACT OF 1989 ing rules. The Pension Reform Act of 1989 and secure, and the federal government would extend the 5-year vesting period to must stand behind its guarantee to insure HON. BARBARA B. KENNELLY these types of plans as well. individual deposits up to $100,000. The sta OF CONNECTICUT Faster vesting also leads the way to great bility and strength of the depository system er, portability, the ability to carry one's credit of this country rests on the confidence of IN THE HOUSE OF REPRESENTATIVES for service in an employer sponsored pension the American public. Failure by the federal Wednesday, September 20, 1989 plan from job to job. This is of particular im government to meet its obligation could un dermine depositor confidence in the system Mrs. KENNELLY. Mr. Speaker, today I am portance to women as they are much more and perhaps trigger widespread bank runs. introducing the Pension Reform Act of 1989. likely to change jobs and interrupt their partici Moreover, the longer the sick thrifts remain There can be no doubt that the status of pation in the workforce at one or more times under current management, the more risks women in America has changed dramatically in their lives. The Pension Reform Act would they take to survive, and the higher the ul in this century with these changes having pro also require the General Accounting Office to timate cost will be for the taxpayer. found implications for the long-term economic study pension portability and make recom The new law is designed to restore public security of women. mendations on how portability could be en confidence in the S&L industry, and in fi hanced, the joint and survivor annuity form of nancial institutions in general, in a number Whereas, heretofore extended families of ways. First, the 1,000-page law raises cared for the aged, both male and female; benefit be preserved, and on the costs to em money to close down or sell off about 750 women today are increasingly likely to be ployers of establishing such a mechanism. S&Ls which have experienced large losses alone as they age due to the disappearance The Tax Reform Act of 1986 also limited in in the last few years and have imposed a se of the extended family, mortality rates, and the tegration, a little known, but potentially devas- rious burden on the rest of the S&L indus- 21172 EXTENSIONS OF REMARKS September 20, 1989 try. Second, the measures creates a new reg move into several markets or to specialize in were obtained from the files of the U.S. ulatory structure to manage the bailout and one or two. Of course, these changes would DOT Library in Washington.) to ensure the future stability and solvency have important implications for the average Now we learn that rehabilitation of the of the S&L industry. Third, the law estab consumer, who could in theory shop for all aging Interstate Highway System, estab lishes stiff penalties for cases involving financial services at a single branch outlet. lished in 1956, will cost trillions. If only a fraud and other criminal activities. And My view is that the S&L law is a necessary small amount of these subsidies had been al fourth, the legislation establishes a federal step towards restoring solvency and stability located to public transportation, if govern agency to manage the loans and foreclosed to the thrift industry and the depository ment policy had been truly intermodal, property of failed thrifts. system as a whole. The legislation will today's problems would not require crisis The new law will have wide-ranging ef strengthen the system by eliminating un management. The list is all too familiar: on fects on the structure of the depository sound lending practices and by weeding out our highways, pot holes caused by over system. The principal effect of the legisla poorly-run institutions. However, it is uncer loaded trucks and in urban and suburban tion may be to force a contraction in the tain whether the funds in this bailout will areas, gridlock, smog, ozone caused by size of the thrift industry, from the current be sufficient to cover all industry losses and motor emissions, jobs looking for workers level of 3,000 to between 1,000 and 2,000. also whether federal authorities will be able and workers looking for jobs they cannot This anticipated decline may be linked to to dispose of well over $100 billion in failed reach. three basic elements of the legislation. properties without disrupting local markets. When "Engine Charlie" Wilson said that First, the new measure will require thrifts It is much too early to gauge the effects of "What's good for General Motors is good to hold more assets in reserve to discourage the legislation on the long-term future of for America", he certainly charted the risky lending practices and hedge against the S&L industry. The law will likely reduce course that has been followed for more than future losses. Almost 1,000 thrifts now fail the number of thrifts and encourage the thirty years. to meet the more stringent standard that growth of a few, large institutions. My guess Although President Bush has declared must be attained by 1994, and few are likely is that the bailout measure will help make himself to be our "Environmental .Presi to achieve it. Second, the law severely re thrifts just another competitor in a more in dent" and in his recent announcement stricts the types of investments available to tegrated financial services system. promised a serious attack on the problem of S&Ls. Thrifts will be prohibited from in air pollution, he did not even mention the vesting in high-yield junk bonds, and will be contribution public transportation can make required to invest a greater percentage of COMMENTS FROM A CON- in improving the quality of air by getting their portfolios in mortgage-related invest CERNED CITIZEN ON A NA motor vehicles off the highways. His inef ments, which are safe, but only marginally TIONAL TRANSPORTATION fectual tinkering with automobile emissions, profitable, investments. And third, S&Ls POLICY with Detroit interests guiding his hand, will face higher operating costs. The bailout demonstrates once again that government measure will require them to pay higher responds to pressure from business, not to premiums for deposit insurance coverage, HON. PETER H. KOSTMA YER the needs of people. and it will draw down some of their assets to OF PENNSYLVANIA It is time and, indeed, past time for our help pay for the bailout. IN THE HOUSE OF REPRESENTATIVES leaders to look at what has occurred in Los These provisions were incorporated into Angeles; choking amidst its freeways; to the legislation to ensure that thrifts pay Wednesday, September 20, 1989 learn from the examples of Germany and some of the cost of the bailout and stay out Mr. KOSTMA YER. Mr. Speaker, the follow Japan in promoting public transportation of financial trouble in the future. However, ing remarks from a distinguished constituent and surging ahead of us economically. Can't some experts predict that the stronger regu of mine were to be given at a hearing held by those responsible finally act on the advice lations could have the opposite effect. In the South Eastern Pennsylvania Transit Au of urban planners generations ago and rec vestment restrictions, for example, will ognize the importance of public transporta force thrifts to earn more money in mort thority [SEPTA]. Ms. Lettie Gay Carson repre tion to a stable economy? gages and other forms of residential lend sents the Alliance for Public Transportation. It's just as simple as this: If people can't ing-the traditional types of investment for Her comments on the state of the national get to work on time, business suffers. the thrift industry. However, the mortgage transportation system and the need for more business is far more competitive and less lu balanced Federal Government support are in crative than it used to be, and many margin sightful. I would like to take this opportunity to CAMBODIAN WITNESSES TO al thrifts may have a tough time surviving bring them to the attention of my colleagues. HORROR CANNOT SEE in this environment. The legislation may also have the long REMARKS FOR U.S. DOT HEARING ON term effect of merging thrifts into the fi NATIONAL TRANSPORTATION POLICY HON. DANA ROHRABACHER nancial services industry as a whole. Al My name is Lettie Gay Carson. I represent OF CALIFORNIA though the new law does not eliminate the the Alliance for Public Transportation, a IN THE HOUSE OF REPRESENTATIVES basic differences between banks and thrifts, state-wide linkage of people concerned with the bailout measure includes many provi the need for better mobility; I am also presi Wednesday, September 20, 1989 sions which may erode over time the dis dent of the Newtown Area Rail Action orga Mr. ROHRABACHER. Mr. Speaker, I would tinct role of thrifts as home mortgage pro nization. like to bring to the attention of the House an viders. First, the legislation permits banks We welcome the announcement that U.S. article printed in the New York Times which to purchase healthy S&Ls, and, in certain DOT is interested in establishing a national cases, to fold them into their branch net transportation policy. It is our earnest hope describes the grievous adverse health effects works. Second, the law allows thrifts to that "national" in this context means bal suffered by a number of survivors of the geno switch to less restrictive bank charters after anced. That means encouragement and sup cide perpetrated by Pol Pot and the Khymer five years, which many of them may be in port of all modes for moving people includ Rouge. As a consequence of the psychologi clined to do if the S&L industry continues ing public transportation. cal trauma of these atrocities, several Cambo to lose depositors. Third, businesses which But history shows no balance at all in fed dian women have suffered severe visual defi offer financial services