28584 EXTENSIONS OF REMARKS September 9, 1977 Monday, September 12, 1977, at 12:30 Rex 0. Presley, of Oklahoma, to be U.S. The PRESIDING OFFICER. The clerk marshal for the eastern district of Oklahoma will call the roll. p.m. for the term of 4 years, vice Laurence c. The second assistant legislative clerk NOMINATIONS Beard proceeded to call the roll. Executive nominations received by the Anton T. Skoro, of Idaho, to be U.S. mar Mr. ROBERT C. BYRD. Mr. President, Senate September 9, 1977: shal for the district of Idaho for the term of 4 years, vice Rex Walters, resigned. I ask unanimous consent that the order DEPARTMENT OF JUSTICE Roy A. Smith, of Ohio, to be U.S. marshal for the quorum call be rescinded. Ronald L. Rencher, of Utah, to be U.S. for the southern district of Ohio for the The PRESIDING OFFICER. Without attorney for the district of Utah for the term term of 4 years, vice Elmer J. Reis, resigned. objection, it is so ordered. of 4 years, vice Ramon M. Child. Edward L. Shaheen, of Louisiana, to be CALIFORNIA DEBRIS COMMISSION U.S. attorney for the western district of Col. Donald Michael O'Shei, Corps of En Louisiana for the term of 4 years, vice Don gineers, to be a member of the California ADJOURNMENT TO 12:30 P.M., ald E. Walter, resigned. Debris Commission, under the provisions of MONDAY, SEPTEMBER 12, 1977 M. Karl Shurtliff, of Idaho, to be U.S. at section 1 of the act of Congress approved torney for the district of Idaho for the term 1 March 1893 (27 Stat. 507) (33 U.S.C. 661), Mr. ROBERT C. BYRD. Mr. President, of 4 years, vice Sidney E. Smith, resigned. vice Col. Frederick G. Rockwell, Jr., retired. if there be no further business to come Ralph C. Bishop, of Alabama, to be U.S. INTERNATIONAL ATOMIC ENERGY CONFERENCE before the Senate, I move, in accordance marshal for the northern district of Alabama REPRESENTATIVE for the term of 4 years, vice Johnny M. with the previous order, that the Senate Robert S. Rochlin, of Maryland, to be an stand in adjournment until the hour Towns. William L. Brown, of Wisconsin, to be U.S. Alternate Representative of the United States of 12:30 p.m. on Monday next. marshal for the eastern district of Wisconsin of America to the Twenty-first Session of The motion was agreed to; and, at for the term of 4 years, vice Raymond J. the General Conference of the International 6:30 p.m., the Senate adjourned until Howard. Atomic Energy Agency.
EXTENSIONS OF REMARKS "LET THE ALIENS IN"-A POINT OF must be maintained and our economic agency demoralized by scandals and the im VIEW standards preserved." possible job of keeping out illegal aliens, With only a few changes, the quotas Chapman took the offensive, warning pub lasted until 1965, when Congress passed a licly of an impending "national catastrophe" HON. ROBERT W. EDGAR new Immigration and Nationality Act that and publishing intlammatory magazine ar ticles with titles like "Illegal Aliens: Time OF PENNSYLVANIA was aimed principally at reuniting fam111es, admitting needed workers, and granting to Call a Halt!" According to Charles Keeley, IN THE HOUSE OF REPRESENTATIVES sanctuary to political refugees from Com a sociology professor at Fordham University, Thursday, September 8, 1977 munist countries and the Middle East. "Chapman was a master at defining the Aliens who didn't fit into these categories issues for the purpose of increasing his Mr. EDGAR. Mr. Speaker, the issue of simply were not to be admitted. Disturbed budget. By very skillful manipulation of the what national policy should be with re by the arrival of 160,000 immigrants a year press, he created a crisis mentality, which spect to illegal aliens is one which we will from the Western Hemisphere (almost all perfectly fit his agency's bureaucratic needs." An from Latin America), Congress placed a In addition to valuable support from such focus upon during the 95th Congress. interest groups as the AFL-010, the Ameri article by Stephen Chapman, which ap quota on them of 120,000 a year-the first can Legion, and Zero Population Growth, peared in the July I August 1977 edition time in our history it had placed a numerical Chapman's campaign was favored by circum of the Washington Monthly delves into limit on Latin immigrants. Congress pre stance, coming at a time of severe economic this controversial issue to a degree which sumably shared the sentiments of the cynic troubles; and the accident that most lllegal who scorned President McKinley's profes aliens have brown skin didn't hurt his efforts should be reviewed by our colleagues. sions of affection for "our little brown For this reason, I wish to share it with skinned brothers": "They may be related to either. House Members who will have to make It's no surprise that the public concern President McKinley, but they're not related about illegal aliens has been fostered by a some dimcult decisions which will have tome." government agency less interested in the a profound effect upon human lives: Heedless of the chllly welcome, a lot of public than in more power, greater prestige, LET THE ALIENS IN our neighbors still want to come, with the and a bigger budget; that, after all, is how (By Stephen Chapman) main consequence of the 1965 ce111ng being things usually work in Washington. What is a "silent invasion" of lllegal aliens that has more disquieting is that the perception of a Oddly for a nation built almost entirely on unnerved many observers to the point of immigration, the United States historically crisis has grown out of confused thinking near-hysteria. Though the invasion has been that rests on questionable premises, unsub has had a schizophrenic attitude about let silent, the reaction to it has been very noisy. ting in foreigners. For our first century-and stantiated statistics, and groundless myths. a-half of existence, we welcomed almost any A good deal of frightened talk is aloof about It's also disturbing that the issue so easily one who wanted to come, and the invitation how to save ourselves from being drowned in raised a public clamor in a nation of liberal was accepted by millions of people all over this "brown tide" of illegal aliens, most of traditions incompatible with xenophobic the world. Until 1882, in fact, the U.S. had it bo111ng down to one simple idea: get them hyperbole. no formal immigration policy, and for the out and keep them out. Most of our fears about lllegal aliens are without foundation and the conclusions next 39 years it didn't limit the number of Such talk in Congress and the White immigrants. Only in 1921 did the govern House is nothing if not popular. A gallup drawn from them, however popular, are thus ment decide to close the open door to some poll last year discovered that 74 percent of mistaken. Instead of talking about throwing foreigners, mainly those from southern and Americans regard illegal aliens as a "very out all our lllegal aliens and doing our eastern Europe, who were arriving in suffi serious" or "fairly serious" national prob damnedest to make sure they don't come cient numbers to cause grave alarm among lem, with 82 percent blaming at least one. back, we ought to be taking precisely the the nation's governing WASPs. One congres of our social llls on their presence. Most re opposite tack and legalizing the status of sional report expressed the worry that the vealing of all, 57 percent of those polled megal aliens already here, while eliminating immigration of such people tended "to up agreed with the unequivocal declaration, "ll the numerical quotas on immigration from set our balance of numbers, to depress our legal aliens should be rounded up and sent the Western Hemisphere. standard of living, and to unduly charge our back to where they came from." Gallup likely TRAINING THE MULE institutions for the care of the socially in could have found a majority in favor -of Chapman's public reLations techniques in adequate." Evidently the threat to the pu melting down the Statue of Liberty and sell his campaign were reminiscent of the rity of the Anglo-Saxon race was too obvious ing it for scrap. perhaps replacing it with farmer who began his mule's training by to mention. a giant replica of a snarling Doberman Pin- clubbing him over the head to get his at scher to underscore the point. tention; hls weapon was the untiring re Nobly trying to avoid these disasters, Con petition of huge numbers. In one congres gress established immigration quotas based That the drawbridge to the golden door is sional hearing he placed the number of il on the ethnic makeup of the American pub now in danger of being pulled up is due legal aliens at four to five million, but when lic, letting in a lot of northern Europeans, a mostly to the vigorous xenophobia of former asked about the basis of his estimate, Chap few southern and eastern ones, and only a Marine Corps commandant General Leonard man replied, "It is just a midpoint between handful of Asians. As the above congres Chapman, who retired ln January after four the two extremes. I have heard one or two sional report subtly explained it, if "the years as commissioner of the Immigration million at one end of the scale and eight or principles of individual liberty ... [are] to and Naturalization Service. When in 1973 ten million at the other. So I am selecting a endure, the basic strain of our population he assumed control of a small, little-noticed midpoint ... just a guess, that is all. No- September 9, 1977 EXTENSIONS OF REMARKS 28585 body knows." An immigration and Natural Wayne Cornelius dismisses this belief as a them, the Cubans wasted no time in finding ization Service-commissioned study by Lesko "cruel 1lluslon," and there is in fact little to jobs, however menial; by 1974 only 10 per Associates, a Washington consulting firm, support lt. Many of the jobs held by lllegal cent were on the welfare rolls, most of them had little success in narrowing the wide aliens are the kind that few Americans would elderly people. And the hard work has paid range of estimates. It guessed there were accept, regardless of their skllls. A Califor off: Jacoby notes that the "median income about 8.2 mllllon lllegal aliens in the U.S., nia businessman who hires lllegals told New of Cuban fam111es rose from $5,244 in 1967 but such experts as Wayne Cornelius, an as West magazine, "If you pulled out every il to $8,091 in 1970." Not only that, but local sistant professor of political science at MIT legal allen in Los Angeles at midnlgh t to officials say the Cubl.ns have created at least and a longtime student of the subject, have night, you would wake up tomorrow morn 100,000 jobs since they arrived. criticized Lesko's estimate as much too high Ing in a town without busboys, maids, or The case of the Vietnamese refugees is and its methods as scientifically dubious. parking-lot attendants." North and Hous less encouraging, but the presence of many The only hard numbers available are sta toun reported that most of their respondents of them on welfare rolls appears due partly tistics on INS apprehensions. In 1975, for in worked as laborers (including farmworkers), t0 the unique circumstaces of their immi stance, the agency caught and deported 766,- service workers, and other semi-skilled or un gration and our efforts at settling them in 600 lllegal aliens-but using that figure as a skilled workers. Most of the aliens they sur American society. The Vietnamese emigrated basis for estimating a total number, as INS veyed were paid little more than the mini to the United States with little preparation does, is ·questionable at best. Since many mum wage, with some receiving even less and no real purpose besides escaping what aliens are apprehended more than once, the than that. Like the North-Houstoun study, they expected would be a very unpleasant number of aliens who are caught is probably the San Diego report expressed doubt that fate. Coming from an Eastern society, they quite a bit lower than the total apprehen aliens displace American workers, noting faced greater cultural and linguistic barriers sions. One Border Patrol officer tells of ap one instance in which the State Human Re than did the Cubans or other immigrants prehending and deporting a single Mexican sources Agency could not fill 2,154 jobs made from Latin America. five times tn one night. As General Chapman available by the deportation of lllegal work But the blame for nearly a third ending up admitted, no one knows how many lllegal ers, a failure it blamed on the jobs' low receiving welfare payments lies mostly on the aliens there are in the U.S., and there is wages, poor prestige, and long hours. San federal government. "The government leaned probably no way of finding out. Diego, despite its 11.8-percent unemployment overboard in making assistance available to That hasn't stopped Chapman and his al rate, had a similar experience: when some the Vietnamese, without making them un lies from using their unreliable estimates as 340 jobs were vacated by lllegal aliens, INS derstand that collecting welfare is not the the basis of even more unreliable calcula was unable to fill them with Americans and normal way of life here," says Leon Marlon, tions of how much lllegal aliens cost the gov finally let the employers hire commuter Executive Director of the American Council ernment. According to their line of reason workers from Mexico. North and Houstoun of Voluntary Agencies for Foreign Service. ing, aliens impose a burden on taxpaying also concluded that llegal aliens neither com "These people didn't learn how to operate in Americans by using public services, welfare pete with skilled American workers nor de our C".llture, and didn't realize that every benefits, and food stamps-all for free, since press wages. Eliot Abrahams, an aide to Sen one is supposed to work for a living. Putting they don't pay taxes. Factual support for this ator Daniel Patrick Moynihan, says flatly, them on welfare was a simple solution to a argument is conspicuously absent, no doubt "There's no evidence that the average allen very complex problem." But the majority of because what concrete evidence there is dis depresses wages. Aliens either get good wages the Vietnamese here have barely been in credits the theory. In fact, most employers or they get low pay for jobs no one else wlll this country two years, and Marion sees their deduct both income and FICA taxes from the take." swelling of the welfare rolls as a short-run paychecks of their lllegal workers, partly be The aliens don't make much difference to problem that wlll correct itself in time. cause they don't always know which ones unemployment because unskilled Americans "More Vietnamese are going to resettlement are lllegal and partly because they fear prob understandably prefer subsisting on welfare agencies for help in finding gainful em lems with the IRS and the Social Security or unemployment payments to working long ployment, and they turn out to be hard, Administration. At the same time, lllegal hours at low-paying drudgery. The low un earnest workers," he says. "They give an workers tend to avoid any contact with gov employment rate in Texas is largely a con employer his money's worth." The problem ernment agencies, even those that might sequence of the state's stingy assistance to of a temporary swelling of the welfare rolls provide help, out of fear of being caught. A the poor. Conversely, the high unemploy is one we have to face, but experience shows Department of Labor study by David North ment rates in cities like New York and Chi that it is only temporary. Other refugees and Marlon Houstoun last year reported: from Communism than the Vietnamese, like cago, where aliens are believed to flock, is the Hungarians and the aforementioned "This group of lllegal allen workers were probably due far less to the aliens than to Cubans, are no longer dependent on welfare. significantly more likely to have participated the generally stagnant economic conditions It's foolish to pretend that open immigra in tax-paying systems (many of which are in the industrial Northeast and the attrac tion will be completely free of problems, but automatic) than to have used tax-supported tiveness of the relatively high welfare and most of them seem easily surmountable. For programs ... while 77 per cent of the study unemployment benefits in such cities, which instance, we can count on the greed of the group reported that they had had social are enough to make any unskllled worker American Bar and Medical Associations to security taxes and 73 per cent reported that think twice about working for a living. safeguard against the brain drain from un they had federal Income taxes withheld. Only It wlll be argued that if lllegal aliens are derdeveloped countries that open immigra 27 per cent used hospitals or clinics, four per given legal status, they wlll likewise choose tion might cause. cent collected one or more weeks of unem relief benefits over low-paying jobs, but the ployment insurance, four per cent had chil evidence suggests otherwise. Aliens, like THE FIXED PIE dren in U.S. schools, one per cent partici most lmmlgran ts, generally appear eager to The vaguest but one of the most persistent pated in U.S.-funded job-training programs, accept work of any kind bec3.use of the so myths about 11legal aliens is that their mere one per cent secured food stamps, and 0.5 cial stigma they attach to not working, the numbers strain our economic capacity, thus per cent secured welfare payments." improvement it represents over jobs in their lowering our standard of living. This opinion A recent study by the San Diego County native countries, and the hope of advance rests on a false conception of a fixed pie Human Resources Agency arrived at similar ment. "Apart from any consideration of their the more people there are, the smaller each conclusions, estimating the county's annual lllegal status," said North and Houstoun, slice. As noted above, the Cuban experience "they appear to be like immignnt workers: in Miami suggests that the influx of immi cost in social services to lllegal aliens at $2 grants actually stimulated the local economy. mllllon and the aliens' yearly contribution highly motivated and hard-working employ ees, whom U.S. employers regard as very pro Historically, there appears to be no correla in taxes at more than $48 million. The ·real tion between the rate of immigration and ity, then, is just the opposite of the myth ductive workers, despite the fact that many do not speak English." economic health. One of the healthiest pe spread by Chapman and his ilk: lllegal aliens riods in American economic history, 1881 to contribute more than their fair share to gov THE WELFARE OF THE CUBANS 1921, coincided with the arrival of 25 million ernment revenues and receive far less than The American experience with immigrants foreigners. The Great Depression, on the their share of state and federal benefits. The from Cuba during the 1960s implies that other hand, came only a few years after we General no doubt would be chagrined to aliens do not come to the U.S. to sit back established the first immigration quotas. Nor learn that Instead of aliens being a burden and collect welf:lre checks. When hundreds is there any obvious relationship today be to the rest of us, it's the rest of us who are of thousands of Cuban refugees poured into tween the number of lllegal aliens in a given a burden to the aliens. Miami in the decade following Castro's revo region and that Ieglon's prosperity; some UNFAIR COMPETITION lution, many Miamians feared they would states, like those of the Southwest, have At the heart of organized labor's demands swell the relief rolls. Contrary to popular healthy economies despite a lot of aliens, for measures to stop the influx of foreigners belief, few of the Cubans were wealthy, and while the industrial cities have both aliens is the notion that they compete unfairly even those who were arrived almost pen· and poor economic health. with American workers, displacing Americans niless. According to Susan Jacoby, who has One reason the debate about aliens so·often from their jobs and depressing the general written extensively about aliens in the U.S., goes astray is that it concentrates on their level of wages. Labor thinks a lot of our "By 1962, small businessmen, technicians, effects on the rest of us, ignoring humani economic ailments would vanish if only the clerical workers, and urban factory workers tarian question of whether or not coming Illegal aliens would. Chapman has gone so were arriving by the thousands." Now, Jacoby here is good for them. Our immigration laws far as to argue that deporting all our Ulegal says, "Miami is filled with small businessmen slam the door on thousands of people who aliens would cut the unemployment rate in who were blue-collar workers in Cuba." Des would like to move to the u.s .. and that tn half. pite a specbl federal welfare program for itself is a bad thing. Moreover, many would-
- 28586 / EXTENSIONS OF REMARKS September 9, 1977 be immigrants-who come mostly from poor, Some pay hundreds of dollars to professional hordes-a choice that tests not only our trust authoritarian countries in Latin America body-smugglers for help in getting across in our heritage and our free institutions, but see the U.S. as the only way out of a life of the border, and hundreds more for forged our humanity as well. poverty, ignorance, and oppression, and in BODY SMUGGLERS most cases they are probably right. To-keep Of course, many aliens have to go through them out is not only to circumscribe their a lot of hardship just to get into the U.S. freedom, but also to sentence them to a papers, "green cards" (Alien Registration Re METRO-HEALTH HMO bleak, painful existence they desperately ceipt Cards), and entry documents-some of want to escape. The people who founded the which are so poorly forged as to be worthless, United States pictured it not as an en although the aliens have no way of knowing HON. ELWOOD HILLIS trenched and isolated outpost but as a bea that . .Miens who walk across the border (as OF INDIANA con for the rest of the world and a refuge most lllegals do) are often attacked by gangs IN THE HOUSE OF REPRESENTATIVES for the oppressed. We may have grown cyni of hoodlums on either side. One Border cal about such notions, but is it right to turn Patrol officer told the Washington Star, "On Thursday, September 8, 1977 away all the foreigners who stlll take them the American side, we broke up gangs of local seriously? Mr. HILLIS. Mr. Speaker, during the high school kids who had been lying in wait August recess, I had an opportunity to Under the worst of circumstances, namely for the wets. They were robbing them, beat living here lllegally, what the aliens find in ing them up, raping the women. We even visit the Metro-Health plan offices in the U.S. is plainly better than what they had two 12-year-old kids who were stationing Indianapolis. Metro-Health is the only left behind, which of course is why they health maintenance organization came. Even the lowest wages paid in the U.s. themselves at the end of a long culvert drain are much higher than most could dream of pipe that the aliens used to sneak through. HMO-in my home State of Indiana and making at home. New west mentions one They were shaking them down for 15 or 20 I was happy to have the chance to get a Mexican who got $1.35 an hour stripping bucks apiece, threatening to call us if they first-hand look at its operation and fa paint in his first job here-ten times what didn't pay up." cilities. In view of the current national he earned driving a delivery truck in Mexico. Without erecting a Berlin Wall along the debate on health care delivery in the Mexican border and subjecting employers But legalizing their status and loosening and megal aliens to all sorts of draconian United States, I would like to share with restrictions on immigration to make 111egal measures-which would require much higher my colleagues some of the impressions I entry unnecessary would substantially im expenditures and expanded enforcement- received from this visit. prove the aliens' lot, which is what many there is no way to stop the influx of people Metro-Health is operated, as are all Americans apparently regard as scandalous. from Latin America. Too many people want HMO's, by a private, not-for-profit cor Obvious, the aliens would benefit from the too badly to get in, and we would gain little ordinary rights and pr-ivileges accorded other poration. Its services are offered to em from redoubling our efforts to keep them ployee groups as an alternative to the American workers. The 111egal alien's outlaw out. status undercuts his bargaining power and And it is not likely that more liberal im more traditional health insurance plans compels him to accept nearly anything his migration laws would attract unmanageable which reimburse doctors and hospitals employer chooses to infiict on him, from low numbers of foreigners. The current length of after the service is rendered to the pa pay to long hours to poor working conditions. time that Western Hemisphere people have tient. 'Ib.e primary difference with the If he complains, his employer can fire him to wait for visas is about three years, which HMO is that the medical services are or even have him arrested by the INS. The at the current quota means a total of only alien can hardly demand that he receive the paid for in advance by the subscriber 360,000 people are waiting, hardly an alarm and, for the most part, those services minimum wage or be allowed to join a union ing number. Charles Keeley is skeptical of (although some unions have 111egal aliens as scare talk about the fiood of aliens who would are provided at the HMO itself with members). If he is mistreated, defrauded, or arrive if restrictions were relaxed. "You would functions similar to a group practice injured on the job, he is not likely to seek probably get a big initial flow, but not neces clinic. legal redress. All the pressures on the lllegal sarily an unreasonably high number, and 'Ib.e HMO I visited in Indianapolis worker encourage him to do what he's told, after that the number would probably drop take whatever pay he's given, and keep his has been in operation for 2% years. It off sharply," he says. "I'm not so sure every serves 7,500 members, all of whom mouth shut. body's dying to get in here." Wayne Cor Many employers take full advantage of the nelius says few illegal aliens from Mexico elected to join as an alternative to tra opportunity to exploit the aliens. They often want to live here permanently anyway, and ditional employer provided health insur pay illegals substandard wages-a practice that most of them come for less than six ance programs. Metro-Health is staffed made possible not by the normal dictates of months. Keeley agrees, noting that one mll by eight full-time physicians and utilizes the market, but by a "black market" in lion legal aliens left the U.S. during the 20 medical specialists for referral cases. labor that puts the employer in an abnor 1960s. I was impressed by its sophisticated mally strong position and the employee in an In keeping in mind the humanitarian rea diagnostic equipment as well as its fa abnormally weak one. North and Houstoun sons for letting in more foreigners, it is not discovered, for example, that the aliens in necessary to lose sight of our own interests; cilities for testing and analysis. Such their survey generally "earned less per week letting them in need not be a purely selfless "in-house" equipment, along with an than comparably employed U.S. workers, gesture. After all, the rest of us have much to emphasis on preventative medicine, has though they generally worked considerably gain from the continual infusion of new peo helped to reduce the need for hospitali longer hours." The aliens in industrial jobs ple, whose mere presence testifies to their zation of Metro's subscribers. Further worked an average of 44.5 hours a week, whlle determination and willingness to take risks. more, these services are provided at ap comparable Americans worked only 35.9 One nice thing about the difficulty of immi proximately 40 percent of the normal hours. Illegal aliens no doubt also suffer grating is that it weeds out those who are hospital rate. relatively poor working conditions. timid or lazy, leaving only the adventurous . "They are also vulnerable to even more and the ambitious. The old American ideal In coordination with the HMO con :flagrant abuses. It is a common practice for of the melting pot is based, in part, on the cept of preventative medicine, I was im farmers in the Southwest to hire illegal knowledge that most of the foreigners who pressed by the comprehensiveness of the Mexicans for a couple of weeks and then come to America are those with the qualities Metro-Health plan. Its medical offices call the Border Patrol when payday rolls most beneficial to a dynamic society. include facilities for eye examinations, around. The Border Patrol hauls the aJiens Indeed, the strangest thing about the con dental care, nutrition counseling, casts away and the farmer gets a couple of weeks' troversy over 11legal aliens is that it so sel and dressings, laboratory analysis, X labor for only the cost of room and board. dom· t.Ouches on our hallowed tradition of A former official of California's North County welcoming the weary immigrant, a tradition rays, and minor surgery. All of these Chicano Federation told the san Diego Hu that goes to the heart of the nation's char services are prepaid and most are avail man Resources Agency that such incidents acter and purpose. There are few American able to the subscriber at no additional are standard practice among many citrus traditions nobler than that of providing a charge. With the exception of voluntary and :flower growers, who they estimate owe sanctuary to the weak, freedom for the per sterilization and mental health crisis illegal aliens $20,000 in back pay. Another secuted, and opportunities for achievement intervention, no service costs are more Chicano organization said that kickbacks to to the ambitious; and for that matter, few than $2. And when the occasion arises field bosses and excessive deductions for that have had such far-reaching benefits. where the subscriber's medical needs re room and board likewise are common prac Like our own parents and grandparents, quire hospitalization or the care of a tices. The San Diego report mentioned an foreigners come to this country today to lift incident in which an 111egal alien who suf themselves out of poverty, to escape political specialist, the HMO makes all the neces fered three heart attacks was refused per oppression, to give their children a better life. sary arrangements and covers the cost mission to see a doctor; when he finally The choice is between continuing this legacy of those services. Furthermore, Metro visited one on his own, he was fired. and standing at the walls to beat back the Health will offer a medicare buy-in September 9, 1977 EXTENSIONS OF REMARKS 28587 option within 6 months in order to make H.R. 6362 would repeal application of sisted there was "no evidence" that sealed this facility available to senior citizens. the sealed bidding provisions to sales of bidding- produces more money on the aver Mr. Speaker, I believe that we are long national forest timber. Because this leg age than oral auctions. Instead, the asso ciation ("Your forest industry voice in Wash overdue for a common-sense approach islation barely passed the House Agricul ington") has contended in one position paper to solving the health care problems in ture Committee, by a 20 to 20 vote, and after another that "the reverse may well be this country. While HMO's are not a will soon be before the full House, it true," especially in the Pacific Northwest. panacea for rising medical costs, they seems appropriate to bring to the at The new Forest Service study, however, can, and should, have a place within the tention of my colleagues an article which reinforces preliminary indications from an framework of a national health care appeared in the August 14, 1977 edition earlier nine-year review of national forest legislative package. of the Washington Post. The article suc sales that, while based on scantier data, suggested that sealed bidding yielded higher cinctly described the economic advan prices. tages of retaining the present sealed bid "We didn't really have enough data before SEALED BIDDING YIELDS MORE ding regulations: FEDERAL REVENUE this, but it's beginning to pile up," said one SEALED BIDS YIELD MORE FOR NATIONAL Fo·rest Service expert. FOREST TIMBER Sealed bidding has been the rule, rather (By George Lardner Jr.) than the exception, for decades in the South HON. JOHN KREBS and the East. Oral auctions became custo OF CALIFORNIA In the first review of federal timber sales in the Pacific Northwest under a new, sealed mary in the West, especially in Oregon and IN THE HOUSE OF REPRESENTATIVES bidding law aimed at preventing collusion, Washington, following World War II, ostensi Thursday, September 8, 1977 the U.S. Forest Service has found that it bly to give local lumber mms a chance to produces more money for the government bid more than one, offer a higher price and Mr. KREBS. Mr. Speaker, the U.S. than the traditional system of oral auctions. protect their traditional timber supply from Forest Service has disclosed some start The study would appear to unde,rcut a outsiders. ling information concerning the new major contention of the Western timber in Oral bidding also provides an opportunity sealed bidding regulations implemented dustry, which has been lobbying intensively to buy government timber at the lowest pos for repeal of the sealed-bidding rule. sible price (the Forest Service appraised through the National Forest Manage value), which is all that need be offered if ment Act of 1976. The data clearly indi The review covered timber sales from all no one else shows up at the auction. cate that the Federal Government real 20 national forests in Oregon and Washing ton for the first six months of 1977. It was The Forest Service has agreed that sealed izes more revenue through the applica completed by the Forest Service's regional bidding is "a greater deterrent to possible col tion of sealed bidding to National Forest offices in Portland last week. A copy was ob lusive practices," but despite several ongoing timber sales than it would through ap tained by The Washington Post. federal grand jury investigations, timber in plication of the oral bidding process. According to the study, se!l.led bidding for dUSitry spokesmen deny that collusion 1s a. Recent figures pertaining to sales federal timber in the coveted Douglas fir real problem. The campaign for repeal of the region on the west side of the Cascade Moun sealed-bidding rule, meanwhile, has been which took place at each of the six west mounted in the name of the "little sawmills" ern Forest Service regions in the first tains produced $274.7 million--$115.9 mil lion more than the Forest Service's appraised and small "dependent communities" that half of 1977 indicate, that overall, in prices. need nee.rby national forest timber to survive. situations where both oral and sealed Timber sold at oral auctions on the west But, according to a study for Sen. Edward bidding were used, sealed bidding re side brought bids totaling $51.1 million M. Kennedy (D-Mass.), Forest Service regu turned substantially higher bid pre only $19.2 million more than the minimum lations that have been on the books for dec miums than did oral bidding. prices fixed by the Forest Service. ades provide ample protection for unsuccess Moreover, figures regarding sales con Industry pressures have already forced ful bidders and local communities. summated during the first 6 months of the Forest Service to cut back sharply on The chairman of the Senate Antitrust Sub the sealed bidding prescribed by the 1976 committee, Kennedy, who is seeking to up 1977 in the Nation's most active timber hold the se·aled-bidding rule, pointed out in producing area, region 6-Washington la.w, but most of the national forest sales in the two states for the first half of the a recent floor stateme;nt that under one key and Oregon-appear to now challenge year were carried out by sealed bid. safe.guard "an unsuccessful bidder or a com testimony given by U.S. Forest Service A total of 1,485 billion board feet of tim munity which believes that it is dependent" Chief John McGuire on February 7, 1977, ber was sold by sealed bids on the west side may protest the award of a timber sale to before the Forests Subcommittee of the of the Cascades at an average bid price of the high bidder, whatever the method of the House Agriculture Committee. Chief Mc $184.90 per 1,000 feet, $78.05 above the ap bid. praised price. By contrast, 296.6 million feet The rule can be invoked even 1f loss of the Guire testified there was no evidence to timber will simply "materially lessen" job suggest that sealed bidding would, on were sold at west side oral auctions at an average bid price of $172.42 per 1,000 feet, opportunities, but it apparently has been balance, produce greater income to the $64.66 above the appraised price. used only oru::e since 1960, to block the bid of Federal Government. a Canadian firm for timber in Montana's In region 6, however, where a mix of On the east side of the Cascades, where Kootenai National F·orest. both oral and sealed bidding was em ponderosa pine and other types predominate, "The right to protest the award because sealed bidding produced $49.9 million, or job opportunities will be lessened or a mill ployed, sealed bidding produced an aver $14.3 million more than the supposed "fair age of $14.84 more per thousand board will be forced to close . . . is a valuable priv ma.rket value" appraisals of the Forest Serv ilege that dependent communities have had feet of timber sold in the eastern Pon ice. Oral auctions yielded $26.7 million, or for 30 yea.rs and have not used," Robert E. derosa pine area and $11.57 more per $5 million more than the appraised price. Wolf, a forestry expert for the Congressional thousand board feet sold in the western A total of 437.3 million board feet was Research Service, advised in a. recent memo Douglas fir area. The Forest Service's sold by sealed bids on the east side for an to Sen. Dale Bumpers (D-Ark.), another de own data indicate that the Federal Gov average bid price of $114.03 per 1,000 feet fender of the sealed-bidding law. ernment would have lost between $20 or $32.67 more than the appraised value. By Another Forest Service regulation in effect million and $25 million had oral bidding contrast, 236.6 million board feet were sold for years permits the rejection of high bids in west side oral auctions for an average tbat might result in a "monopoly" situation, been employed in 99 percent of the sales bid price of $11~.98 per 1,000 feet, or $21.18 which took place in Oregon and Wash but this rule has apparently never been used. above the appraised price. Kennedy wound up his recent floor state- ington. Thus sealed bidding produced an average . ment with a series of 1975 and 1976 memos It is important to note that the bid of $13.39 more per 1,000 feet in the Douglas from Forest Service files. In one, regional for ding regulations which resulted from the fir region west of the Cascades and an aver ester T. A. Schlapfer of Portland (now re National Timber Management Act of age of $11.49 more for each 1,000 feet of tired) strongly recommended "judicious use 1976 received a liberal interpretation by timber sold on the east side. of a mixture of sealed and · oral auction" the Forest Servi-ce in favor of the timber In all, according to several extrapolations, in light of various Justice Department industry's desire to continue oral bid the government would have lost between investigations under way. He alluded to the ding. Had the strictest interpretation of $20 and $25 million for the first half of 1975 convictions of Cha.mpion International 1977 if the Forest Service had continued to Corp. and six others for collusive bidding in section 14(e) been implemented, that use oral bidding on 99 per cent of its sales in violation of the Sherman antitrust act on is, selling all timber by sealed bids, one the two-state region. timber from Oregon's Willamette national can only speculate as to the total amount The National Forest Products Association, forest. of additional revenue the U.S. Treasury which has been leading the drive to repeal "We cannot afford to be caught without would have derived. the sealed-bidding law, has repeatedly in- having taken any action in [the] event there CXXIII--1799-Part 22 28588 EXTENSIONS OF REMARKS September 9, 1977 1s another conviction," Schla.pfer wrote. But keep it running after its declaration of or gas well. Most of the wells drilled are he went on to complain: "Generally, industry bankruptcy. This situation is unprece dry but you have to keep drilling if you has not made any constructive suggestions. dented, and I would contend that it is are going to have production. They do not recognize that here is a problem." unfair. We need to remember that half of our I wrote to the Secretary of Transpor oil this year is being imported from the tation to reverse the order liens against Arab OPEC countries. In 1972 we were PENN CENTRAL'S DELINQUENT the railroad. Secretary Adams chooses paying the Arab OPEC countries $5 bil TAXES to leave the situation as it is, although lion for this oil. Today we are paying $45 he is empowered by the Regional Rail billion and are suffering a tremendous Reorganization Act of 1973 to provide negative balance of payment. HON. MARY ROSE OAKAR some remedy for this situation. With We can get the oil and gas here in the this display of administrative inaction, I United States but we need to pay the in OF OHIO have chosen to initiate this legislative dependent oil and gas producers so they IN THE HOUSE OF REPRESENTATIVES action. For over 6 years, the Federal can take the risk. Thursday, September 8, 1977 Government has stood by idly as the Ms. OAKAR. Mr. Speaker, just before State and local levels of government have anxiously awaited the outcome of the the House recessed for the month of PHILADELPHIA ENDING SUBSIDY August, I introduced H.R. 8882. This bill Penn Central bankruptcy proceedings. will aid thousands of local, county, and It is likely that this long legal battle is OF SUBURBAN COMMUNITIES FOR State taxing districts in the recovery of far from over. Mr. Speaker, it is time for WATER, SEWAGE SERVICES long overdue Penn Central tax dollars. the Congress to give assurances to these The Penn Central Transportation Co. municipalities, counties, and States who went into bankruptcy on June 21, 1970. anxiously await their tax dollars. HON. JOSHUA EILBERG As a result of the railroad's reorganiza H.R. 8882 will insure that the series C OF PENNSYLVANIA tion, as prescribed by congressional and and series D notes that Penn Central IN THE HOUSE OF REPRESENTATIVES Federal court actions, there is nearly offers are, indeed, good investments for Thursday, September 8, 1977 $500 million in taxes that the Penn Cen our counties, cities, and school systems. tral has not paid to State taxing authori By assuring the investment community Mr. EILBERG. Mr. Speaker, the city ties and their political subdivisions. These that these Penn Central notes are good, of Philadelphia is at long last taking are tax dollars that fund our schools solid investments, we assure State and steps to change the ratemaking proce and local governments. local government that they can continue dures involved in providing water and At present, the Penn Central trustees delivery of vital services, and we assure sewage services to neighboring subur are attempting to have these localities our schools that they, too, will have the ban communities, thus ending a system settle for 50 percent of the post-bank funding needed to deliver good educa under which the people of the city of ruptcy taxes, or 44 percent of all taxes tional services. Philadelphia have, in effect, been sub owed. There is much dissatisfaction Mr. Speaker, I ask my colleagues to sidizing their suburban neighbors. among local officials over this settlement take a long and serious look at this situ According to Water Commissioner proposal. In fact, there is a national ation and the legislative remedy that I Carmen F. Guarino, Philadelphia hopes coalition of local, county, and State offi offer. I solicit their support for this much to collect at least $3,301,000 more a year, cials who are fighting this proposal in needed and long overdue measure. retroactive to July 1, from suburban the U.S. district court in Philadelphia. communities for water and wastewater Moreover, this group is lobbying on be services. half of the legislation that I have intro Guarino said that the city plans to duced. H.R. 8882 has also received the U.S. OIL AND GAS POTENTIAL reform the existing service contracts endorsement of the U.S. Conference of that it has with 11 suburban townships Mayors and the American Federation of and authorities. This reform will include Teachers. HON. JAMES M. COLLINS higher charges that will return to the H.R. 8882 addresses itself to a another OF TEXAS city its actual costs for serving the settlement proposal before Judge John IN THE HOUSE OF REPRESENTATIVES suburbs. A. FUllam of the U.S. district court. This Thursday, September 8, 1977 Ordinances will be submitted to city proposal would provide for an immediate council to approve the new rate struc 20 percent cash payment and the re Mr. COLLINS of Texas. Mr. Speaker, ture. maining 80 percent of taxes to be paid during the August recess I went to west Guarino said that the water depart through the issuance of Penn Central Texas to check out energy developments. ment receives, treats, and disposes of notes. The legislation that I have intro We all are cognizant of the oil and gas wastewater return of investment, for those city somehow everyone will know the Metric providing water and wastewater serv plants, pipelines, and pieces of equip System. ices to the individual suburban com ment that service each suburban town munities, ship or authority. In addition, a 10 per Be adjustable from time to time, cent management fee will be added to RENEGOTIATION BOARD CHAIR whenever rates paid by water-sewer these costs. MAN ADMITS ERROR AND OVER customers inside the city change, STATEMENT End discriminatory treatment among suburban communities themselves, since some of them have been paying less than YOUNG ILLINOIS CONSTITUENT HON. MARK W. HANNAFORD others for the same quantity of service UNDERSTANDS IMPORTANCE OF OF CALIFORNIA received from the city, METRIC CONVERSION IN THE HOUSE OF REPRESENTATIVES Help Philadelphia reform its system Thursday, September 8, 1977 of sewer charges to all its users, both inside and outside the city, as required HON. ROBERT McCLORY Mr. HANNAFORD. Mr. Speaker, one by the Environmental Protection OF ILLINOIS of the most frequently asked questions today is "What is Congress doing to Agency. IN THE HOUSE OF REPRESENTATIVES Guarino said that the EPA has asked eliminate unnecessary spending?" In a the Water Department to change the Thursday, September 8, 1977 period marked by high unemployment method of calculating all of its sewer Mr. McCLORY. Mr. Speaker, the and in:fiation, as well as by problems of charges, including those paid by Phila changeover to the metric system of Federal, State and local government fis delphia residents. This has to be done weights and measures seems to be well cal needs, and declining national capital by July 1, 1978, he noted, in order for understood by the younger generation. investment, we can ill afford to waste the city to continue to receive Federal I am heartened that Gary Voss, a tax dollars. funds for the $414 million expansion of seventh grade student in the Hampshire· In this connection, Mr. Speaker, when its wastewater . In addition, yards, tons, and so forth, to the new measure The only business the Renegotiation both water supply and wastewater ments of the Metric System. Board had in the matter was for pub treatment charges will be in:reased to People will use the Metric System as part licity purposes at a politically sensitive of their daily lives. It will be easier in life. time in the consideration of the legisla the Bucks County water and sewer Just as for elders as for youngsters. tion to extend its life and expand its authority. For elders it will be easier to figure out powers. Guarino said that the U.S. Navy Yard bills and other appliances. As tor driving, The attached Wall Street Journal ar will be taken out of the suburban cate instead of the speedometer reading in miles ticle of August 22, among others, reveals gory. Because is is located inside the per hour, it will read in kilometers. The that as a result of an August 5 meet city it will pay regular city sewer rates speed limit signs also will read in kilometers. As for women in cooking, it wm be in ing concerning the accuracy of its in the future rather than wastewater grams, liters and other metric measurements charges, the Board retracted its allega charges :fixed by contract. and also for youngsters. Math will be easier tions against Lockheed on August 17 The Navy Yard already pays regular for them because there are no fractions in and that its Chairman admitted error city rates for water supply. the math work of the Metric System. So the and "overstatement." The serious impli Wastewater rates paid by the suburbs math work in schools and out of schools wlll cations of the Board's conduct in this will rise by at combined average of 148 be in the Metric System. matter should not be overlooked. People think the Metric System is going percent retroactive to July 1, 1977, to be a big problem. Well, it's not! The Met As I commented in a letter on June 21 Guarino noted, while the range of in ric System is going to be easier to learn and COSigned by Senator ALAN CRANSTON, the dividual community increases will be to work with. Board's behavior in the Lockheed affair from 92 percent to 335 percent. This ex The youngsters that are stlll in school will provides ample evidence of the weak cludes a small percentage of increase in learn lt faster and easier. But it still won't be foundation on which it rests. The Rene- 28590 EXTENSIONS OF REMARKS September 9, 1977 Finally, the contending sides met Aug. 5, He had conditioned his admission on the gotiation Board deserves to be dis and last week Mr. Chase sent Lockheed correctness of figures calculated by Lock mantled during peacetime and rein what appears to be a partial retraction. heed's outside auditors, Arthur Young & stated only during periods of national "Following our meeting the board's anal Company. emergency. Attached are articles from ysis was again revised, taking into account The letter went on to raise a series of the Wall Street Journal and the New data assembled by Lockheed," Mr. Chase other questions about Lockheed's contract York Times, and a Washington Star edi· wrote. "Based on that review, I erred in the ing procedures and said, "I have requested translation of the dollar amounts in ques the Defense Contractor Audit Agency to as torial on the Board's conduct: sist the board in a further review of these (From the WaU Street Journal, Aug. 22, 1977] tion to pounds of steel. If the figures calcu lated by your internal auditors are correct, areas." RENEGOTIATION BOARD HEAD ADMITS ERROR IN my figures for the amount of unaccounted Among the items questioned were: The ALLEGATIONS OF LOCKHEED OVERCHARGES steel are overstated." cost growth figures submitted by Lockheed (By Jerry Landauer) to the Navy in support of its contract claim; LARGE DIFFERENCES the "apparently excessive" progress payment WASHINGTON.-Mter twice flogging LOck ·Mr. Chase contended, however, that "large billing to the Navy; the large difference be heed Aircraft Corp. for allegedly overcharg differences" remain between the amount of tween the amount of steel purchased and ing the government on Navy shipbuilding steel Lockheed purchased and the amount the amount actually used in the ships, and contracts, the chairman of the Renegotiation it used to build the seven ships, but he of the relationship between these items and Board is grudgingly admitting that he made fered no figures. Mr. Haack said that "if you those currently being investigated by the a mistake. put all the unaccounted for steel in your eye, Department of Justice on the Destroyer 1052 The board chairman, Goodwin Chase, ac it wouldn't hurt." contract performed by Lockheed in the same knowledged his error, along with probable Repeated efforts to reach Mr. Chase weren't "overstatements," in copies of a letter to period of time. successful; his special assistant, John Davi COMMENTS BY HAACK Lockheed that were sent to key lawmakers son, said the chairman isn't recanting or on Capitol Hlll to "set the record straight." withdrawing "the initial position he took Mr. Haack said in an interview from his His admission, embarrassing to certain leg relative to the Lockheed matter.... I won't headquarters in Burbank, Calif.: islators who had accepted the overcharge take the liberty of speaking for him beyond "This is an oblique admission that he blew it. But Mr. Chase has kept the issue allegations as facts, could neutralize Presi that point." dent Carter's pleas to extend the Renegotia In any case, Mr. Chase's acknowledgement alive by raising difficult-to-understand prob tion Board's life. of error in calculating the dollars that may lems We can justify our cost growth. Our Government officials involved in the con be involved won't help win votes in Congress progress billings to the Navy are reconcilable. troversy between the board and Lockheed to expand the Renegotiation Board's au Our scrap rates are defensible, and what the say it appears obvious in retrospect that Mr. thority. Before the congressional recess, relationship is to the destroyer escort busi Chase was using the company to whip up ness is I just don't know." congressional support for legislation to ex House Speaker Thomas P. O'Neill (D., Mass.) Mr. Haack, who came from the presidency tend the Renegotiation Board through 1982, hesitated to bring the legislation to a vote, of the New York Stock Exchange to try to and to enhance its authority to recapture ex despite a round of letters from the Presi rebuild an image of Lockheed that had been cessive profits from defense contractors. dent urging passage of the bill. In the Sen shattered by overseas bribery scandals in the ate, Mr. Proxmire's Banking Committee is INVITING TARGET mid-1970's, said: "The kind of loose, irres scheduled to consider the legislation in mid ponsible talk engaged in by Mr. Chase in "This is a grubby example of self-serv September. ing bureaucracy," said one Treasury official those Senate hearings last June can be very One particularly controversial feature of damaging." who asked not to be identified. Lockheed's the measure is a provision authorizing Mr. Through an Act of Congress, the Govern scandal-tarred reputation, resulting from Chase's board to scrutinize defense contrac ment had guaranteed up to $250 million ot admissions of big payoffs abroad to win for tors product-by-product rather than on a loans from a consortium of 24 commercial eign business, makes the company an invit company-wide basis. banks, and according to some reports, the ing target for ambitious bureaucrats, the of bankers were getting nervous about the un ficial said. (From the New York Times, Aug. 23, 1977] favorable publicity last June. Lockheed has Mr. Chase began his campaign against ERROR CONCEDED IN CHARGES OF LOCKHEED paid back all but $80 million of the money. Lockheed in testimony to the senate Bank OVERBILLING Mr. Haack said he had tried to reconcile ing Committee in June. Citing contracts that (By Clyde H. Farnsworth) the dispute with Mr. Chase privately after had been completed as long ago as July 1971, calling on both internal and external audi he contended that Lockheed's shipbuilding WASHINGTON, AUGUST 22.-The Lockheed tors to examine the 28,000 invoices and count subsidiary couldn't account for 73 mlllion Aircraft Corporation today released a letter from Godwin Chase, chairman of the Gov the steel in the contract at issue. pounds of steel for which it had billed the "I told him [Mr. Chase] that if any Lock Navy as part of the cost for seven amphibi ernment's Renegotiation Board conceding heed personnel were culpable I'd cooperate ous transport docks, known as LDPs. Lock that he had "erred" in alleging before a Sen in putting them in jail. He said he would heed's billing practices, Mr. Chase asserted, ate committee that t11e company had over apologize if he were wrong." "proves that the Defense Dep·artment cannot, charged on a contract for the construction of Mr. Haack continued: "We were abso on its own, protect the taxpayers against seven amphibious transport dock ships for lutely certain that our case was right, but overcharging by contractors." the Navy. we simply couldn't get an audience. All we Early in July, Mr. Chase sent three aides "You don't make undocumented charges wanted was for his staff people to go over to the seattle headquarters of Lockheed and pronounce upon them publicly to fur the facts with our staff people, but we were Shipbuilding & Construction Co. They con ther your interests," said Robert w. Haack, never accorded that courtesy." cluded-and Mr. Chase immediately notlfted Lockheed's chairman, in an acerbic com Bills have been introduced in both Houses Banking Committee Chairman William ment on an affair that has implications going Proxmlre (D., Wis.) in a hand-delivered let of Congress to extend the life of the Rene well beyond a single company and the agency gotiation Board. ter-that the missing steel amounted not to whose job is to prevent excess profits on de The proposed legisl-ation provides for pen 73 million pounds but to 117 million fense contracts. alties if companies fall to file with the board, pounds valued at $10.2 milllon. The admission by Mr. Chase that he "erred allows it to issue subpoenas to get basic And to make sure that Congress wouldn't in the translation of dollar amounts in ques company information, empowers it to ex ignore the Renegotiation Board's alertness tion to pounds of steel" and that "my fig amine contracts on a product-by-product in protecting taxpayers, somebody promptly ures for the amount of unaccounted-for steel basis and requires an annual review of its leaked the fresh findings. "Lockheed Over are overstated" came as legislation is pend activities by the General Accounting Office. charge Estimate Raised," a four-column ing in Congress to extend the life of the Re front-page headline in The Washington Post negotiation Board to 1982 and to give the (From the Washington Star, Sept. 2, 1977] reported, and Mr. Chase confidently asserted agency and its newly appointed chairman "I stand foursquare on my statement and new powers. CHASING THE "MISSING" STEEL . would be pleased to have it subjected to in The letter constitutes a potential em The Renegotiation Board has sometimes vestigative scrutiny." barrassment for the board and could weaken been characterized as a band of tovthless But according to Robert W. Haack Lock the legislative efforts ln Congress. tigers. Then Goodwin Chase came along. Mr. heed's chairman, Mr. Chase kept a~oiding The board, which has 179 employees, tech Chase, who recently was appointed chairman company officials who hoped to resolve the ically went out of business last Septem by President Carter, was described once by controversy peaceably. "I felt as though I ber 30, when the last Renegotiation Act, a House Banking subcommittee chairman, had the plague," Mr. Haack said. It's also which had been extended 13 times since Rep. Joseph Minish, as the "only real tiger on known that Brian Freeman, secretary of the originally enacted in 1942, expired. The that board." Emergency Loan Guarantee Board, which board now works only on its backlog. It can It appears that Mr. Chase may have taken administers Lockheed's government-backed not examine any new ca.ses. a. bite out of his own tall in his campaign to loans, sought to act as mediator, apparently Mr. Chase said today: "My letter in its give his board new life and broad authority. because Lockheed's bankers were getting entirety speaks for itself. I have no further Last June, Mr. Chase told the Senate edgy about the harmful publicity. comments to make." Banking Committee that Lockheed Aircraft September 9, 1977 EXTENSIONS OF REMARKS 28591 Corporation's shipbuilding subsidiary had billed the U.S. government for 73 million vide for the placement of secondary It has always been difficult for stu pounds of steel that it couldn't account for school students in internships with aging dents to make the transition from the in building seven amphibious transport professionals at administrative, research, classroom to the world of work. Youth drydocks. This proved, Mr. Chase said, "that and service levels for the purpose of sen graduating from high school today are the Defense Department cannot on its own sitizing our youth to the problems of incapable of making informed choices protect the taxpayers against overcharging older people, to dispel negative stereo regarding a productive role they can fill by contractors." typic notions youth have about the aged in society, with or without education, What it also proved, Mr. Chase would have to liked members of Congress to conclude, was and the aging process, and encourage simply because they have so little con that it was necessary for the Renegotiation them to explore career opportunities in a tact with the working world and receive Board to ride herd on contractors who do field of aging. little or no skill preparation for such op business with the government. That, of For too long there has been a lack of portunities. Youth need experiences that course, was what the Renegotiation Board career exploration in the area of aging. develop the responsibility, self-reliance, was supposed to do when it was established In the past few decades, however, both and initiative upon which such informed in 1951. public and scientific attention has choices are made. The ultimate success Congress evidently has been far from satis focused increasingly upon our elderly of schools depends upon their ability to fied with the board's record of recovering excess profits; the lawmakers have voted the population, for they comprise the fastest provide these opportunities. Yet, formal board operating funds from one congres growing group in our society. By the year schooling is carried on in the classroom sional session to the next but. have never 2020, over 40 million Americans will be with little of the learning experience established it as a permanent agency. The aged 65 and above, compared to 22 mil from working in the community or with board generally has been considered some lion in 1975. and only 3 million in 1900. adults recognized or encouraged. Inter thing of a joke around town and Presidents Due to breakthroughs in medical science, personal and communication skills are have used it frequently as a repository for more and more people are enjoying largely ignored, despite the fact that hu minor politician to whom favors were owed. longer lives. In 1900, a person could ex man service employment opportunities But President Carter and Mr. Chase, as well as subcommittee chairman Minish, are pect to live an average of 47 years. To in the area of aging are increasing as is trying to persuade Congress to strengthen· day, the average life expectancy is 72 the demand for these kinds of skills. the board and give it permanent status. years. In each succeeding decade the pro Mr. Speaker, the legislation I am in How convenient that steel overcharges by portion of elderly to young in the popu troducing addresses this problem. This Lockheed, some involving contracts com lation will increase. bill will provide high school students pleted as long as six years ago, were dis covered by Mr. Chase just as congressional This substantial growth in numbers of with work experience through education committees were considering the legislation. individuals projected to be over 65 in fu related internships with policymakers, Mr. Chase pursued the Lockheed matter by ture years is a compelling reason for pub researchers, and service providers in the sending three aides tor the shinbullding lic attention to focus on the shortage of field of aging. This training device will subsidiary's headquarters, after which he manpower trained and capable of deal bridge the gap between the world of informed the Senate Banking Committee by ing effectively with an older person's academia and the world of work, expose letter in July that the amount of missing needs. youth to career opportunities in aging, steel was not 73 million pounds but 117 mil and perhaps most importantly, assist to lion pounds valued at $10.2 million. Accord Dr. Robert Butler, a noted gerontolo ing to the Wall Street Journal, this higher gist and psychiatrist, in testimony before dispel the limited thinking children have estimate was promptly leaked to the press the Senate Special Committee on Aging, about the elderly and their own aging and resulted in prominently displayed new expressed his concern regarding the lack process. stories. of Federal attention devoted to training There needs to be an exchange be But was It 117 million pounds? Was it even competent people for decisionmaking tween the young and the old. According 72 million pounds? Apparently not. positions in the field of aging: to one study, young people fear growing After meeting with company officials August 5, Mr. Chase sent Lockheed a letter . . . I would like to make one final point old and thus tend to alienate the elderly. which, according to the Journal, said In which is the need for training so that we can To youth, old people are those who are be assured that we get proper placement to wrinkled and sad; they chew funny, part: "Following our meeting the board's begin with. Perhaps 20 to 40 percent of the analysis was again revised, taking Into people need not even go to nursing homes walk with canes, and sit in wheelchairs account data assembled by Lockheed. Based but could be in less expensive circumstances, all day. Such stereotypic thinking about on that review, I erred in the translation of home care, etc. To have properly trained older persons and the aging process is the dollar amounts in question to pounds people to make those decisions is something potentially harmful. In order for chil of steel. If the figures calculated by your we have not really worked on adequately in dren to develop the positive self-concepts Internal auditors are correct, my figures for the legislative authority so far. the amount of unaccounted steel are over necessary for a fulfilling life, they must stated." Older people deserve a citizenry which be able to adapt to their own changing, How much overstated? Mr. Chase didn't is cognizant of and responsive to their aging selves. say and the Journal said repeated attempts plight. In time, as our enlightened public The Select Committee on Aging, which to reach hlm for clarification were unsuccess I chair, found that children may stereo ful. A company official contended that "If you sentiment is translated into new and in put all the unaccounted for steel in your novative methods of meeting older type the elderly simply because they have eye, it wouldn't hurt." peoples' needs, many more jobs wm be so little contact with persons older than Well, how much steel, if any, did Lockheed created in the field of aging. Such job themselves outside their family unit. Op overcharge the government for? Before development is not likely to abate and portunities, such as I propose in the leg giving the Renegotiation Board sharper will require a large cadre of skilled per islation I offer today, must be made teeth, the Senate committee ought to find sonnel to implement effectively. available in order that children might out. It ought also to ask board officials for Our country possesses the resources develop a positive perspective of the a full explanation of how and why they erred aging process. These internships w111 en and whether going after Lockheed was necessary to meet these predicted per mainly to promote legislation they wanted. sonnel shortages--its youth. The current able youth to get to know older people in And tigers ought to be careful what they controversy surrounding the youth un a variety of settings and serve to assist sink their teeth Into; they could wind up employment problem should prompt the them in challenging the stereotypes that swallowing themselves. Government to prepare this population society has constructed and perpetuated for service with the aged-where oppor about aging and the elderly. tunities for employment will abound. With the passage of the 1973 amend YOUTH INTERNSHIPS IN THE FIELD ments to the Older Americans Act, Con OF AGING The rate of unemployment for youth has been consistently higher than that for gress expressed its intent to bridge the the work force as a whole, and the prob gap between the young and old when HON. CLAUDE PEPPER lem is getting worse. The unemployment adding 202 (b) , which states: (b) In executing his duties and functions OF FLORIDA rate for teenagers has not been less than under this Act and carrying out the pro IN THE HOUSE OF REPRESENTATIVES 10 percent since 1953; and between 1968 and the present, when the national un grams and activities provided for by this Thursday, September 8, 1977 Act, the Commissioner, in consultation with employment rate rose from 3.6 to 8 per the Director o! Action, shaZZ take azz possible Mr. PEPPER. Mr. Speaker, I am cent, the teenage rate rose from 13 to steps to encourage ancl · permit voluntary pleased to introduce today a bill to pro- 21 percent. groups active in social services, incZucling 28592 EXTENSIONS OF REMARKS September 9, 1977 youth organtzations active at the high school Representatives of the United States of grams and processes relating to problems in or college levels, to parttclpate and. be in America in Congress assembled., the field of aging; volved. individually or through representa SHORT TITLE "(3) demonstrate the manner in which tive groups in such programs or activities such project will seek to-- to SECTioN 1. Tills Act may be cited as the the maximum extent feasible, through the "(A) interest secondary school students "Youth Internships in the Field of Aging in exploring career opportunities in the field performance of advisory or consultative func Act". tions, and in other appropriate ways. (Eln of aging; pha.sls added.) STATEMENT OF FINDINGS "(B) stimulate greater communication SEc. 2. Tile Congress hereby finds that- among generations, in order to familiarize Under title IV-A of this same act, the ( 1) older persons make up the fastest grow secondary school students with problems in Administration on Aging-AOA-is au ing segment of the population of the Nation, the field of aging; and thorized to help meet the critical short since, by the year 2020, more than 40,000,000 "(C) encourage secondary school students ages of adequately trained personnel for individuals living in the Nation wlll be 65 seeking careers in the field of aging to ac prograq1s in aging. The AOA supports years of age or older, compared to 22,000,000 quire the skllls and experience necessary to training programs at institutions of such individuals in 1975, and 3,000,000 such provid,e effective assistance and services to individuals in 1900; older persons; and higher learning that provide students (2) the increasing number of older persons "(4) certify that secondary school stu with the necessary gerontological knowl in the population of the Nation, and the fre dents pa.rticipatlng in such project wlll re edge and skills to enable them to serve quency of the medical and social problems ceive course credit from the secondary schools older Americans in their chosen career experienced by such persons, has created a involved for such participation. or profession. However, to date, the pri shortage in the number of persons trained "(c) For purposes of this section and mary responsibility for recruitment and and capable of providing effective assistance section 401, the term 'secondary school' preparation of people for a career in the and services to older persons in connection means a day or residential school which pro field of aging has been borne by our Na with such problems; vides secondary education, as determined ( 3) the need to expand and improve the under State law, except that such term tion's institutions of higher learning. quality of life for older persons is not likely does not include any school providing edu This Federal program does not attempt to abate; cation provided beyond grade 12.". to sensitize our secondary students to the (4) it is of critical importance that com (b) Section 401 of the Older Americans problems of older persons prior to their petent individuals who have an understand Act of 1965 (42 U.S.C. 3031) is amended by entrance into an institution of higher ing of older persons and their problems be striking out "and" before " ( 4) ", and by learning or the world of work, despite recruited to provide effective assistance and inserting before the period at the end there the congressional mandate to do so. service.,; to older persons; of the following: "; and (5) by establishing The Nation and the Congress are con (5) the primary responsibll1ty for recruit internship programs for secondary school ing and training individuals for a career in students in the field of aging". cerned about the plight of the unem the field of aging often has been performed ployed youth as well as the plight of the by institutions of higher education; uncared for older person. My bill is a re (6) incentives must be developed to in SELECT COMMITTEE ON sponse to both of these problems. It will terest individuals in exploring career op POPULATION amend title IV-A of the Older Americans portunities in the field of aging before such Act to authorize the Commissioner on individuals begin their courses of study at Aging to make grants for the establish institutions of higher education; and HON. STEWART B. McKINNEY ment of internship programs for second (7) a program for the placement of sec OF CONNECTICUT ondary school students in internship pro ary school students in the field of aging. grams at administrative, research, and serv IN THE HOUSE OF REPRESENTATIVES Students participating in such an ice levels with professionals in the field of Thursday, September 8, 1977 internship program would have the aging is a suitable mechanism fot: preparing opportunity to provide recreational, individuals for careers in the field of aging. Mr. McKINNEY. Mr. Speaker, despite companion, escort, homemaker, and YOUTH INTERNSHIP PROGRAM my concern over the expansion of the other similar services to older persons; SEc. 3. (a) Part A of title IV of the Older committee structure in the House, I am to assist in determining the manner in Americans Act of 1965 (42 U.S.C. 3031 et seq.) a cosponsor of House Resolution 70 and which policy determinations are made is amended by adding at the end thereof the rise in full support of the creation of a in connection with programs and serv following new section: Select Committee on Population. ices in the field of aging; and/ or to assist "YOUTH INTERNSHIP PROGRAM Mr. Speaker, I have consistently and in information-gathering programs and "SEC. 405. (a) Tile Commissioner may wholehear-tedly supported efforts to im processes relating to problems in the "(1) make grants to any public or non prove the efficiency of our legislative field of aging. Students participating in profit private agency, organization, or in process through the elimination of over such internships would receive course stitution, or to any State agency referred to lapping jurisdictions in many House credit. in section 304; and committees. At present there are seven "(2) enter into contracts with any agency, committees in this body with at least Mr. Speaker, I believe we can no organization, or institution specified in para limited involvement in population-re longer afford to ignore the provision the graph (1); to assist any such agency, or 93d Congress wisely included in the Older ganization, or institution in the develop lated issues. However, I see the creation Americans Act to encourage youth par ment and maintenance of internship pro of the Select Committee on Population ticipation in programs for the elderly. grams for secondary school students at ad as a remedial action rather than as a The bill I offer today is a step toward ministrative, research, and service levels further proliferation of committee juris ful:tllling that promise. I would urge my with professionals in the field of aging. dictions. In fact, Mr. Speaker, one of the colleagues to join me in support of this "(b) Any agency, organization, or institu essential functions of the committee will worthwhile measure. tion specified in subsection (a) which de be to provide a focal point for the widely sires to receive a grant, or enter into a con dispersed activities of those seven stand Last, Mr. Speaker, two people made a tract, under this section shall transmit -an ing committees. The new committee will very special contribution in guiding the application to the Commissioner. Any such direction of this legislation: Ms. Shar application shall be transmitted at such provide the first comprehensive analysis lene Hirsch, national director of Execu times, and in accordance with such pro of global and national population trends tive High School Internships of America, cedures, as the Commissioner may reasonably that I have seen in my 7 years in the who generated the proposal upon which require. Such application shall- House. .. ( 1) contain a description of the nature In a letter to all Members, our col this legislation is based, and Ms. Christy of the project which wlll be carried out under league, Representative JoE MoAKLEY, von Kaenel of Bowdoin College, who as the' grant or contract involved; Democrat of Massachusetts, stated that an intern on the Select Committee on "(2) demonstrate the manner in which Aging furnished me the information and secondary school students participating in a review by the House Rules Committee data necessary to prepare this bill. such project wlll- of nearly 20 proposals for the creation " (A) provide recre!l.tional, comp·anion, of select committees resulted in the ap I am pleased to insert at this point proval of only two-the Select Commit the text of this legislation: escort, homemaker, and other simllar serv ices to older persons; tee on Population being one. Mr. Speaker, A blll to amend the Older Americans Act of "(B) I stand fast in my opposition to increas 1965 to authorize the Commissioner on assist in determining the manner in Aging to make grants for the establish which policy determinations are made in ing the number and jurisdictions of the ment of internship programs for secondary connection with programs and services in committees of this body. However, when school students tn the field of aging the field o! aging; and problems, such as those resulting from Be it enacted. by the Senate and. House of "(C) assist in information-gathering pro- the expansion of world population, be- September 9, 1977 EXTENSIONS OF REMARKS 28593 come so severe as to warrant immediate The Lance affair· has revealed a gap between monwealth Office and by many other gov congressional attention, we have a re the two, what in times past was called a ernment departments, by trade union sponsibility to respond. And, there can credib111ty gap. Jimmy Carter was not eleC'ted leaders and private corporations and by my on the basis of his platform, on a promise eight immediate predecessors at 3100 Mass. be little doubt as to the seriousness of to cut defense spending, or to balance the Never I would think in the history of diplo the problems of the world's ever-increas budget, or to reform welf:lre. His platform macy was so much taught by so many to so ing population. was so sweeping and so vague that it evoked few in so short a time. This experience, As my colleagues well know, the 4 bil an uneasy distrust among many Americans. which had me travelllng from Brussels to lion inhabitants of this Earth may be Jimmy Carter was eleoted in spite of the Belfast as well as up and down miles of come 8 billion in just 35 short years. shifting specifics of his campaign. corridors and dozens of elevators, left me Furthermore, there is justifiable concern He was elected because he offered a new with an abiding impression of the extraor that the 500 million starving and mal and higher moral and ethical tone. This was dinary breadth and diversity of the inter nourished people in the world may dou the righteous candidate who said things face between our two countries. I began to should not only look right, they should be believe that there was no one in Britain, ble in an even shorter timespan. The right; who preached openness and honesty no matter what he was doing, Who did not select committee will be able to provide and integrity; who said "We ought not to feel a burning need to be kept closely in all of us with a comprehensive analysis lower our standards in government. Our touch with his opposite numbers in the of the reasons and potential remedies to government in Washington ought to be an United States or who did not expect the these regressive effects of overpopulation. inspiration to us all and not source of Ambassador to see to it that all obstacles The recommendations of the select com shame." Jimmy Carter offered an answer to were removed from his path. While this .is mittee to the seven standing committees Watergate, to government by lie, cover-up, doubtless an exaggeration and while I at will, as mandated by the provisions of evasion and stonewalllng. times felt somewhat daunted at having such President Carter, the Lance affair reveals, a flood of intercommunication flowing H.R. 70 include the results of research is something else. He put friendship above through my study, I was deeply impressed on birth control methods-other than all else; he turned aside a report that raised at the richness, closeness and enthusiasm abortion-food reserves, and pollution numerous questions and suspicions about of the interest and friendshp felt in Britain resulting from population expansion. Mr. Lance's conduct because that report con for the American people and for so many I expect that the committee will also cluded that there was no reason to indict aspects of American life and activities. forecast the implications and possible Mr. Lance. He was, said the President in re Diplomacy, I began to realize-at least remedies for unbalanced resource dis action to that report, "proud" of his old where it concerned that multi-lane highway tribution throughout the world-pres friend. between the US and Britain-was no longer ently 5 percent of the population con The matter subsequently has grown more a matter of the measured exchange of ele ominous. Mr. Lance is under investigation by gant pleasantries and occasional exquisite sumes 33 percent of the nonreproduction several federal agencies with prosecutorhl indignation between stately chancelries, but resources. functions. And, worst of an, there are sugges rather an integral part of the hurly-burly Mr. Speaker, it is the responsibility of tions of cover-up by the Carter inner circle, of every day life across increasingly invisible each Member of this body to become of a failure to make known potentially dam international frontiers. People in all walks much more aware of the myriad of prob aging information about Mr. Lance before of life in Britain are fascinated uniquely lems associated with population growth. he was confirmed. Yet, the President now with what is going on in the US, with how Future legislation must reflect our cog stands silent. · it may affect them, with the opportunities nizance of worldwide demographics. I Bert Lance will have to answer for his it may afford them, with new ideas that may conduct. And President Carter will have to benefit them and, above all else, with the therefore urge each of my colleagues to answer for his. The President has expended living proof which America represents that support the committee in order to af oonsiderable political capital. He has wasted against all odds and all reasonable expecta ford us the opportunity to educate our it away. He has shown himself to be a shad tions problems can be solved and free socie· selves more fully on these real and pres ow of the inspiring presidential vision he ties can survive and prosper. ent problems. offered the American people. The time when Secondly, I was exceptionally lucky to ar Bert L!mce could rescue his old friend by rive twenty-four hours before an important resigning is past. The damage, severe dam round of talks between our Foreign Secretary THE ISSUE ISN'T BERT LANCE age, has been done. David Owen and Secretary of State Cy Vance about our joint policy in Rhodesia. Apart from being a rare, instructive and impressive HON. ROBERT E. BAUMAN BRITISH-UNITED STATES opportunity to see the top foreign policy OF MARYLAND RELATIONS making echelons of the Administration IN THE HOUSE OF REPRESENTATIVES both in the State Department and in the White House-in operation right from the Thursday, September 8, 1977 word "go", it seemed to be an object lesson \ HON. CHARLES W. WHALEN, JR. Mr. BAUMAN. Mr. Speaker, today's in how business should be done. Indeed, I editorial page of the Baltimore Sun con OF OHIO began to wonder, if all international relations IN THE HOUSE OF REPRESENTATIVES were like this, how there could be so many tains an interesting comment on the real problems in the world. Of course, it helps meaning of the Bert Lance affair. I com Thursday, September 8, 1977 when the business is being done between old mend it to my colleagues for their con Mr. WHALEN. Mr. Speaker, the new and close friends and allies who see eye to sideration in the larger context of this eye on all the main issues. But I was very issue: British Ambassador to the United States, struck by the speed and ease of communica THE ISSUE ISN'T BERT LANCE the Honorable Peter Jay, addressed the tion, by the automatic assumption of mutual National Press Club yesterday. confidence and shared values and by th6· Bert Lance may be at the center of the Having just read a copy of the text of open willingness on both sides to modify controversy as dally revelations surf.ace previous thoughts quickly and cheerfully in about his activities as a Georgia banker, his his remarks. I am impressed by what he articulated and the manner in which response to sound points raised on the other personal finances, his 1974 gubernatorial side. I realise of course that things cannot campaign and the casual intermingling of all he did so. It is clearly an important always be quite so harmonious; but I do like three. But he is not the issue. With each statement of how the present British to think that in relations between the US passing day, each new revelation, Bert Lance Government views its relationship with and Britain we at least always start from in one sense recedes into irrelevancy as his the United States and should be of in third base because we do not have to spend old friend Jimmy Carter becomes more and terest to Members of the House. For that time overcoming differences of values, lan more the central issue. in guage and intellectual frameworks. Where This is not to suggest that Mr. Lance's reason, I insert it at this point the RECORD. we disagree at least we und.erstand how and pre-Washington conduct is unimportant. It why we disagree. Take even the vexed ques is important for what it tells of the nation's SPEECH BY THE BRITISH AMBASSADOR, Ma. tion of Concorde's landing rights at New budget director and should be explored. Nor PETER JAY, AT THE NATIONAL PRESS CLUB, York. We have spent a lot of money with our is it to suggest that Mr. Lance's preoccupa WASHINGTON ON SEPTEMBER 7, 1977 , partners in France building this plane. We tion with his personal problems is of no con Perhaps I may first say a word or two of naturally want to operate it on the premier sequence to government. If that were the a personal kind about my first impressions transatlantic route for which it was designed. case, then there would be no need for a· of Anglo-American relations seen from the, We believe that we are entitled to do so under budget director. But there is a need, particu for me, very new vantage point of an Am international agreements and American law. larly at a time when the administration's bassador's office and about the new era You understand that. But the Port of New first budget is being formulated. beginning in my own country. I was first York Authority interprets its responsibilities But the core of the matter is President of all very fortunate to be marvellously as requiring it to oppose landing rights at Carter stacked up against Candidate Carter. briefed in London by the Foreign and Com- Kennedy airport; and it is defending its right 28594 EXTENSIONS OF REMARKS September 9, 19·77 to do so in the courts. There is very strong In part a product of a new generation in I give you fair warning, Mr. President, that feeling on the part of some of the inhabi all parts of our national life who newer knew we are back in business in Britain, not be tants of the airport area; and there are elec the era of Empire and great-power status cause we have solved all our deeper prob tions coming up in New York City and State. and so have no hankerings to go back to an lems-we are only starting on the most ur We understand all that, as we understand irrecoverable past, who caught the American gent-but because we have recovered our that the Federal executive cannot dictate preference for success over the most ele self-confidence and our self-respect, because either to the courts or to state and municipal gantly justified failure and who have begun we are no longer divided on the fundamentals authorities under your Constitution. The to show how realism allied to imagination of economic realism, because decency and matter is being pursued by due-though and inventiveness can begin to transform the trust are beginning to return in our public "orne would say unduly slow-process of law old stereotype of the necessary relations be life, above all else and quite simply, we are in accordance with the ideals of the rule of tween capital and labour; fed up to the back teeth with failing and law and an independent judiciary which we And in part the product of a new leader introspection and we are coldly determined like to think of as one of our most success ship in our national life which prefers facts that over the next twenty years we are going ful exports. We know that we shall get fair to fancies and which is determined to give to succeed. play and that Concorde wm be allowed to priority to policies that strengthen the na And that I believe w111 be the best founda prove itself in New York. (And I hope that tion over a decade rather than to postures tion for the continuation and reinforcement forestalls all the "have-you-stopped-beating which may grace tomorrow's headlines. As of that special friendship and mutual enjoy your-wife" questions which you had planned the Prime Minister put it to me as we walked ment with the U.S. which is, as David Owen to ask me about Concorde !) the white cliffs .overlooking the English put it to me on television earlier this year, We take this view because we are a mature Channel the weekend he took over the gov the most important relationship we have. and grown-up democracy who confidently be ernment, he saw his role as being that of lieve in the ideals which both you and we Moses, to lead the people away from Egypt profess. A few years ago we might not have into the desert in the direction of the prom been quite so calm. From Suez to the infla ised land even if it were never given to "A GREAT WOMAN IN A GREAT tion crisis of the mid-'70s we went through him to see it. That struck me then and strikes CITY" a very bad twenty years, which might well me now as the language of realism and have sapped the self-confidence of any but statesmanship; and we already begin to see the most blindly proud people. The name of its fruits. HON. DALE MILFORD the game was growth; and we were no good This change of heart has not only been ap OF TEXAS at it, though not notably worse than the US, parent in Britain's domestic affairs: it has which could, however, better afford to rest on been exemplified also in our dealings with IN THE HOUSE OF REPRESENTATIVES its laurels. Confidence in the standards ob the world. The decision of the British people Thursday, September 8, 1977 served in public life took some bad knocks; in 1975 to confirm their membership of the and party politics sometimes spilled over out Common Market was decisive, laying to rest Mr. MILFORD. Mr. Speaker, I would side its proper domain. We could not make a long and unsettling debate about the form like to share with you a story that was up our minds conclusively what was our of our involvement in Continental affairs. published in the Sunday Magazine of the proper role in Western Europe; and we some This has given new and practical significance Dallas Morning News about one of my times found it easier to paper over our mani to Winston Churchill's old saw about Brit good friends in Irving, Tex. First, I think fest shortcomings with wall-to-wan excuses, ain's unique position at the natural inter you should know that Irving is a suave, eked out with the absurd reassurances that, section of European, Commonwealth and At sophisticated city and rather conserva even if the twentieth century just was not lantic relationships. That role is no longer quite our scene, this was of little conse based on a real or musory status as a global tive in philosophy. In many ways, this quence for a nation that had done so well in power, though Britain's long experience in city of 118,000 people is the typical "sub other centuries and had given the world international affairs and the Labour Party's urbia" often sterotyped in TV shows. Magna Carta, thatched cottages and cricket. traditional belief in a principled foreign pol Recently, Jackie Townsell, who is both But the two years from the summer of icy, based on the ideals of universal human female and black, defeated a white male 1973 to the summer of 1975 were a true rights and self-determination, are together realtor to win a seat on the Irving City catharsis. We went to the brink, looked over proving an invaluable heritage in todayrs Council. I think it is an interesting story. and frankly did not fancy the drop. A new conditions. Thus we have seen this year realism began to spread through the country. steadfast and prompt British support for Politics is not Jackie's only claim to British trade union leaders put together the President Carter's stand on human rights, fame . . . she cooks some of the best toughest and most successfully policed two unprecedented Anglo-American cooperation food in the district. Both my staff and I years of pay restraint that we have seen, in Southern Africa, important developments enjoy eating at Jackie's grocery-cafe even though this went with the first sus in political cooperation in Western Europe where you can always find the best black tained fall in real living standards in post under the British Presidency and a construc eyed peas around. war memory. The Chancellor sat on the tive contribution in the Paris North-South Mr. Speaker, I include this article writ money supply, which followed a course of Dialogue, where all three axes of our world ten by Mike Granberry in the RECORD: steady disinflation that Professor Milton relationships come together. Without any Friedman himself might have charted. The lingering pretensions beyond our means we IN PLAcE IN IRVING budget deficit was brought under control have settled down in a sensible pursuit of (By Mike Granberry) and was consistently smaller, in relation to our reasonable interests and ideals whenever The stringy-haired, buck-toothed teaser the size of our economy, than those of the our history and our skills enable us to aim limps in with a grin, plops down to a hot U.S. and West Germany. The stock market at practical achievements. plate of meat loaf and cabbage and expresses has now recovered more than all the ground But, of course, we are not going to over unequivocal, unabashed displeasure. it lost from the early days of 1973 and looks come the problems of decades-indeed, so far With a smile as big as Dallas and a falsetto set fair soon to achieve new all-time peaks, as our poor growth performance is con that would fill Gomer Pyle with pride, he though it will ta.ke a little longer, no doubt, cerned, of over one hundred years-in a brief declares, "All I need me is some YEW-TIN to make up the ravages of mid-decade infla span of years. It is a long hard hike through SILLS!" tion as well. Inflation is now coming steadily that desert. We shall certainly go through a First one laugh, then another. In mo down. The balance of payments, helped by very rough period this fall and winter as we ments, everyone in Jackie Townsell's Irving, the fruits of the North Sea and the Chan adjust to the return of free bargaining over Texas, grocery-cafe is laughing like a sea cellor's dogged refusal to let home spending pay. Re-entry is always a scorching expe soned idiot. Epidemic laughter, Jackie lead rip is moving briskly into a large prospective rience; and when you are dealing with the ing. Guffaws, running rampant. surplus. Britain's reserves are now rising so free decisions of twenty-three million inde Welcome to the House of Good Feeling. rapidly as to be almost an embarrassment. pendent-minded working people you can not Soon, the country-talkin' cane-poker is The pound is steady and foreign investors expect to fine-tune the process with all the fitted with knife and fork and is gobbling are increasingly looking towards Britain, a accuracy of a NASA computer. Yet, even here, cream corn and slurping strawberry Kool land without Eurocommunists, grave political we already see favourable signs: carworkers Aid from a Mason jar as if his last meal had uncertainties or astronomic labour and other who are not w111ing to be led into industrial been set before him. "Jackie," he drawls, corn costs, as one of the most attractive outlets confrontation which they believe unjustifi dripping out the side of his mouth, "I'd vote in West Europe for industrial and commer able and unprofitable; the government air for yew tnny-time !" cial expansion. ports authority which is resisting strong "Thank you," she replies. And laughs and But the change goes much deeper than pressure to set a dangerous early precedent; laughs ... these favourable cyclical trends. Being cycli and other encouraging straws in the wind. The noon rush over, Jackie herself settles cal some of them will doubtless turn un I am sorry about the inconvenience to the down to a jar of Kool-Aid and an hour of favoura;ble at some future point; and I would travelling public in the case of the Heathrow quiet conversation. Only a few latecomers not wish to base a c~ purely on those kinds dispute. I can think of no greater misery remaJ.n, munching d111gently in the corner. of shifting statistical sands. The new realism than to spend hours stuck on the ground in "I'm the only woman on the Irving City reflects a change of heart which is:- an airliner waiting to take off. But there is Council," Jackie declares, "and that ls no In part a product of the experience of the something even more important at stake, and problem for me. I speak out and say what I early to middle 1970s; I believe that most travellers know that. want and handle myself in the most business- September 9, 1977 EXTENSIONS OF REMARKS 28595 like manner possible. Men understand that, The time was April, when Jackie defeated volved, but it's more the prestige of the peo· you know." two challengers for a city council post. White ple that I care about. The men in the corner could be a trio of realtor Jack Spurlock finished second; re "I've always been a Democrat, though. I've extras taking leave from "Straw Dogs." Or tired Navy man Johnny Watson, third. Wat always read the paper. I've always been ob· characters from the pages of a D. H. Law son visited the store, offering congratulations. sessed with polltics. Little sister (Jackie is rence novel. The men are mechanics, and Spurlock was never heard from. the eldest of three daughters) always read they are greasy. They even joke about the "You wanna know how an of this start the funnies." She laughs, turns serious, odor they carry. ed?" she says now, turning a capped hot shifting again her train of thought. Hearing Jackie's remark, the curly-haired sauce bottle upsicle down and watching its "You know what we need to do? We here man rises, holds his cornbread high in the contents flow thickly to the top. "We used in Irving? We need to stop building and air in mock salute and cries out, "Amen, to sit around and talk about things-that's start repairing. We're building too many brother! Ahhhhhh-Men!" how it all got started. We'd talk about this new, unnecessary roads. We need to repair, Jackie laughs. amendment, that resolution-the world or then build." To a politician like Jackie Townsell, such the local situation in general. We'd discuss Roads are among Jackie's earliest memo endorsements are often worth free meals. But and cuss, agree, disagree, hash it out just ries. Her Bear Creek ties run deep, beyond her everyone pays at Jackie's place, and every to pass the time. West Dallas birthplace, from which she one gets their money's worth: all-you-can "I can remember first being really con moved at the age of eleven to a hollow ham eat, $2.50. And almost no one walks into or cerned long about 1968. But that wasn't let "where the roads were dirt and stumps away from Townsell's Grocery without feel were all over. We'd slosh home in the mud, ing embraced. the time for a black woman to run for office in Irving, Texas. Gradually, I got better and couldn't drive to save ourselves and had to The air in there is certainly warmer than better feelings about running. Knowing when hike to school. I met Jimmy about then it is in anyone's political headquarters. Be we were just kids." She laughs. "He was sides Jackde's omnipresent laughter and to run-why, people just made me feel it. Made me feel like I ought to. seventeen, I was fifteen." Laughs again. "I home cooking, a two-tone cat curls up in knew I couldn't help fall1n' in love. the corner and naps for a solid hour. Dust "My white friends gave me the go-•ahead to run. They asked that I put together a "You know, Jimmy's boyhood dream was gathers on the Hershey bars as if, by God, to build a store. He was raised close to Ter it belonged there. Two boys, one black, one resume, list everything that I'd done in the last five years." She laughs. "They were rell. His parents were sharecroppers, and he white, wearing boxer shorts, wrestle over a used to walk to a store that a white man Dr Pepper bottle that is half as big as they shocked and impressed. It was so long." are. Laughs again. "One thing leads to another owned. That man was a hero of Jimmy's. He don't you know? used to give him candy and stuff. Jimmy al Jackie's mother, Mrs. Ola Howard, who ways wanted a store just like his. He talked along with Mrs. Ruby Collins cooks most of "I feel delighted to be elected," she says, about it the whole time we were courtin'. the vittles, takes swipes at three flies trying mentioning that she had lost a council seat to kamikaze their way into the meat bin. by 225 votes in a runoff three years ago. Long "When we got it ..."She's laughing now. Follow the sloping ceiling and rutted floor active in civic affairs, Jackie preceded her " ... it wasn't anything like he thought it of Jackie's general store all the way to the council bid by serving as precinct chairman, would be. He didn't last long. So who's kept characters hunched in primitive chairs in a post she resigned to run her April cam the store? Me, that's who." the back corner. Past the Tide, Wonder paign. LBut nowadays, Jimmy works a full day at Bread and Hostess Twinkles. Even past the "To know the kind of people we have here Dresser Industries, then comes home to mind Lifebuoy. Way past the Lifebuoy. Quick to progressive proud people-makes me feel the store while Jackie attends meetings, civic admit that Jackie is an Irving folk hero, pride. I'm happy just being associated with functions or political rallies. "He's a good these pot-bellded boys are even quicker to them. I have so many friends, I'm filled up man,'' she says. "You oughta see him play confirm that they'll be back, again and with tears just thinkin' about 'em ... jacks with the kids in here, always sayin', again. "You know," she continues, "I don't know 'Mistuh Jimmy, would you play us some· Politicized fork-movers have always fre what a person would do without friends. A jacks?' Whooooee! He'd k111 me 1f he knew quented Townsell's Grocery, but lately more friend is someone I talk to whenever I'm I'd told that!" and more have been stopping in, having low. Someone I call up whenever I want. Playing jacks, checkers, tuning in jazz, heard of or read about Jackie and wanting Someone who's always there. Friends mean rock, even country blues-these are the a piece of the action. Like a piece of peach love to me, no matter what color they are. lighter aspects of Jackie Townsell's lighter cobbler, served up after cornbread and meat side. "I enjoy being alone at night, coming loaf and strawberry Kool-Aid. "See, I see myself as a voice, a voice of all the people. I want to listen to the needs of back from a meeting or a talk. I can think Jackde Townsell's popularity base began those less fortunate than me, through I re then. building seventeen years ago, she suspects, sent 'black spokesman' tags. I'm not a spokes "And, no, I don't enjoy campaigning. I when she and husband Jimmy first opened man anyway. I'm a spokesperson." she laughs. hate it. Beatin' on doors, runnin' here, run a grocery store in the muddy Bear Creek nin' there-it'll wear you out. Some of my community of West Irving. A behind-the "Understanding means a lot of things, and I want to be all of the things to all of the friends said, 'Jackie, you're crazy! We scenes grassroots political organizer, Jackie wouldn't do that for nothin' !' started stuffing hearty meals into the stom people all of the time. Seriously, I'm for the a.c;hs of hungry callers five years ago. Food entire city, all of Irving, not just West Irving. "I never, as a big girl or a little girl, became the ultimate unifying force, luring I have no hangups about black or white, rich thought I could be a politician. I didn't even eaters of an ethnic origins. "Me and Jimmy or poor. I serve all. All elected me." know what a politician was. I always wanted used to live here," she says, pointing to the R!!.ce is a moot point in Jackie's store. to be a secretary. Takin' messages, typin' back door where the bedroom used to be. Whites and blacks trade tidbits of gossip tha.t's st111 a dream of mine. "I'd be cookin' and people'd want some. I between bites and swallows. A white council "Am I serious? Of course. And I will never, figured I'd better make 'em pay for it." member walks in, waves to Jackie and takes ever run for higher office. By the time this is Which is cause for a good-natured laugh. a chair. An old black peddler, wearing a red over, I'll be old and gray ..." And another. Looking "lean and mean" in cap and poking the floor with an oak cane, sits down beside him. "How ya been?" the And Jackie Townsell laughs again, at her summer blouse and blue jeans, Jackie ap self, with you, a warm sound that sticks to pears much younger than 41, the mother of men say. "The Sixties opened a lot of eyes," Jackie the ribs of your mind through the after-lunch a man of 26. A fan of her own cooking, she afternoon. is one of those rare individuals who can says "On both sides, black and white. Blacks stomach great quantities of food and at the were as prejudiced as whites. But people's same time struggle to keep her weight up. minds have mellowed. Who you are is more Infuriating, those people are. But Jackie important than what color you are. LOCAL GOVERNMENT RIGHTS MUST more than makes up for it. Good feeling "Martin Luther King was a hero of mine, BE PRESERVED comes as naturally to her as a giggle or a and my other heroes were Mother and a grin. Opportunity 1s a constant companion. white woman I used to work for. Both taught The luckiest of accidents appear to happen me to cook, and Martin Luther King is re HON. NORMAN F. LENT to her as often as the grocery door swings sponsible for improving race relations, al open, as often as she smiles, takes another OF NEW YORK bite or greets a newcomer. most totally responsible. Martin Luther King taught me and a lot of other people how to IN THE HOUSE OF REPRESENTATIVES Truly blessed by chance-"! have had a love." good life," she says-Jackie is equally en Thursday, September 8, 1977 dowed with a gift for gab. Storytelling is as Politics and food have a way of infecting LENT. Jackie in the way that she infects others. Mr. Mr. Speaker, as the Con much a part of the store scene as political gress is in one of its budget-conscious .theorizing. Jackie is a laugh-along ringleader Delightfully, with an innocence that seems to \\those laugh is almost always the last. And promise everyone no harm. "You've got to periods this week, I believe it is appro for whom votes, when the time came, were love politics,'' she says. "I certainly didn't priate to discuss what I view to be a as naturally easy to come by as belches of get into it for the money (for council mem :r:nisapplication of Federal funds which satisfaction. bers, $100 a month). Prestige may be in- has gone virtually unnoticed outside of 285S6 EXTENSIONS OF REMARKS September 9, 1977 the New York Metropolitan area. In MINIMUM WAGE which is an unnecessarily high minimum specific, I refer to a proposal put forward wage. The most important step in im by the Tri-State Regional Planning proving the situation of the poor is for Commission staff which recommends HON. JOHN B. ANDERSON them to secure employment; it is an that an additional 40,000 units of low OF ILLINOIS erroneous assumption for us to believe income housing be constructed in Nassau :::N THE HOUSE OF REPRESENTATIVES that we can legislate the poor-many of County, N.Y., between 1980 and 2000. Thursday, September 8, 1977 whom are unemployed-out of poverty The Tri-State Commission, pursuant by increasing the minimum wage. As the to the Intergovernmental Cooperation Mr. ANDERSON of Tilinois. Mr. Time article suggests, one way to in Act of 1968, is delegated the authority to Speaker, the debate on legislation to in crease the employment of teenagers act as a regional clearinghouse for re crease the minimum wage has been per would be to subsidize a portion of each view of application for Federal aid made vaded by the false belief that an increase youth's wages, thus promoting hiring of by the local governments of New York, in the minimum wage will mitigate pov the young. In the absence of a youth New Jersey, and Connecticut. Under the erty. In the following letter from the Au wage subsidy, we should enact a mini 1968 act, Congress required that "every gust 8 issue of the Wall Street Journal, mum wage differential for teenagers, to effort should be made to take into ac Carolyn Shaw Bell points out that pov encourage employers to invest in the count the viewpoints and objectives of erty relates to a family's income-not a training of young people. A portion of State, local, and regional planning." The particular individual's wages. Given the the article of particular interest follows: very legislation which established the propensity toward multiworker fami There is also a great need to tear down, Tri-State Commission states: lies in today's society, an increase in the or at least lower, the many barriers to em It is not the intent of this Act nor shall it minimum wage will not go hand in hand ployment that confront the unskilled, the be construed to restrict or diminish any with an increase in a family's income, unlettered and the immobile. One obvious powers heretofore or hereafter conferred by thus bringing them out of poverty. To bar is the overly strict and exclusionary law upon any political subdivision of the the contrary, multiworker families union apprenticeship rules. They should be State or any governmental agency, state or relaxed-despite the howls certain to come could be disadvantaged by any signifi from trade unionists. local, included, without limitation, powers cant increase in the minimum wage. If related to planning and zoning. A still more controversial barrier to em employers react to a minimum wage in ployment is the minimum-wage law. Now What the Tri-State Commission has crease by eliminating some marginal $2.30 an hour, the minimum will probably done, in violation of its mandate, is pro jobs, a family where both parents and be raised by Congress to $2.65 next year and pose that the power to zone be taken one older child were employed might around $3.15 by 1980. Of course, the talents have less income due to the unemploy of many members of the underclass-par away from local governments in Nassau ticularly the unskilled young-are not worth County so that a grandiose scheme of ment of the wife or child. that much off the street. Employers would "fair share housing" which would pro What is important to remember is that rather hire someone who shows more evident vide for the construction of a prede although economics and statistics can be promise of further promotion-or not hire termined number of low income dwellings used coldly to predict what might hap at all. The minimum wage, says Sociologist each year for the next generation, could pen, ceteris parbus; as decisionmakers, Riesman, is the product of "an alliance of we must attempt to predict the side ef the better situated labor unions with the be put into dperation. liberals against the deprived and the elderly, What is especially disheartening about fects of any legislative cures we propose. whom people would otherwise employ for this entire affair is that the Tri-State Ms. Bell's letter urges us to see the hu household or for city work that now doesn't Commission's recommendation was made man side of the minimum wage issue, get done." Adds Stanford University Labor without the input of the citizens who and cautions against the argument that Economist Thomas Sowell, a black: "Talk would be affected by it. The Tri-State an increase in the minimum wage will about people being unemployable is just decrease poverty. so much rubbish. Everybody is unemployable Commission is composed of 15 members, at one wage rate, and everybody is employ five from each of the three member The letter follows: able at another." Perhaps not quite every States, Of these 15, only two are elected POVERTY VERSUS MINIMUM WAGE body. In a free economy, there will always officials-neither from New York. In fact, News items about the minimum wage have be some small fraction of people who lack there are no suburban New York repre repeatedly quoted a figure of $2.93 or "about the skills or discipline to work. But there is sentatives on the commission, and New $2.95" per hour as the "federally established" a lot of work that needs doing--cleaning up York's Governor recently vetoed a bill poverty line. In fact, no such poverty figure parks, repairing abandoned buildings, taking on a per hour basis exists. By including the part in the burgeoning service trades-at which would have provided for such rep valid statement that three million workers reasonable wages. resentation. A recent editorial in News- earn the minimum wage or that six million Congress has been considering a proposal . day stated: earn less than $2.65 hourly such reports give to reduce the minimum wage for all teen Tristate is supposed to conduct regional a totally erroneous picture of widespread agers to 75% of the adult minimum, but planning and coordinate federal aid applica poverty among workers at the minimum that might just inspire employers to hire tions for the metropolitan segments of New wage. well-schooled middle-class youth at the ex York, New Jersey and Connecticut. In fact, Poverty concerns income, not wages, and pense of older workers. A better compromise, its bulky bureaucracy has no plan, is un poverty varies according to the number of suggested by Harvard Economist Martin representative of the widely varied jurisdic people living on a given income. Feldstein, would be for the Government to tions involved and has stood by while some The $2.95 per hour quoted comes from subsidize minimum-wage payments to the suburban communities were short-changed dividing the annual poverty-level income for youthful unemployed. Directed specifically on Federal funds. a four-person family by 2,000 hours-the to the underclass, the program would allow normal work-year. But there are less than businessmen to pay a fraction of the cost Mr. Speaker, sometime in this Con four million four-person families in the for jobs that they might otherwise refuse to gress we will be considering amendments country supported by one worker, and there fill. Another wise Government investment to the Intergovernmental Cooperation is no evidence that they are all in poverty. would be to shift some federal funds to more Act, and it appears that the trend is to Of the fam111es of all sizes supported by one and better mass transit, which, beyond all ward the establishment of organizations worker, two million fell below the poverty its benefits to the environment, would give similar to the Tri-State Regional Plan level in 1975, but there is no evidence that the underclass access to all the new job raising the minimum wage would help them opportunities in the suburbs. ning Commission. While I recognize the all. To equate an hourly wage that applies importance of planning on an areawide to all workers, who may be single or living basis, it is my sincere hope that we will in a family with other workers, with the THE REAL CANAL "GIVEAWAY" not forget about the traditional rights minimum income for four-person families is and responsibilities of local governments just plain wrong. The battle to raise the and the taxpayers who must foot the bill. minimum wage should not be fought on HON. RICHARD L. OTTINGER the grounds of poverty. I hope the new legislation will require OF NEW YORK CAROLYN SHAW BELL. that the views of local governments be IN THE HOUSE OF REPRESENTATIVES given fair and balanced treatment so In addition, Mr. Speaker, the August that areawide planning organizations 29 edition of Time magazine contains an Thursday, September 8, 1977 cannot twist the regulations to suit their enlightening article on the plight of the Mr. OTTINGER. Mr. Speaker, few na own needs, and to implement "social en American underclass. These untrained tional issues have been so clouded in, gineering" schemes in someone else's and undertrained individuals face in rhetoric and emotion as the recent neighborhood. numerable bars to employment, one of Panama Canal Treaty. Perhaps, the September 9, 1977 EXTENSIONS OF REMARKS 28597 clouds can be cleared for a moment for will be run impartially and efficiently by the Calif., Lubbock Tex., Lexington, Ky., and people of all persuasions to see some of United States"-which not only ignores the Worcester, Mass. To deny a population support of these nations for Panama but of 116,000 veterans a medical facility the real questions which this treaty none too subtly implies that Panamanians poses. could not run the canal "impartially and within easy access is contrary to the in On Tuesday, September 6, 1977, Tom efficiently." tent and purpose of the Veterans' Ad Wicker's article in the New York Times Actually, most treaty opposition seems ministration. But that is essentially what described the challenge which the real based on factual contentions less than on. a is happening. The nearest VA hospital is canal "giveaway"-giving away our rela vague but visceral feeling that the United in Miami which is 24 miles from the tions with all the Latin American nations States has let itself be "pushed around too Broward County seat of Fort Lauderdale. much," that the canal symbolizes American ·The distance to the nearest VA out- for the future-poses to our Nation. I . power and that somehow the power itself, submit for the RECORD the text of the rather than the symbol, is about to be re patient clinic in West Palm Beach is 40 article by Mr. Wicker: linquished. miles. Public transportation to these It is to this understandable if uninformed facilities is inadequate where it exists at THE REAL CAN.o\L "GIVEAWAY" all and it does not exist in many places It's now evident, if anyone ever doubted it, sentiment that treaty opponents appeal when that deep and emotional host111ty to the they speak of a "giveaway." That was the because local governments have not been "giveaway" of the Panama. Canal presents the word employed by John S. Buckley, aged 24, able to keep up with the tremendous Carter Administration and the Senate with the new national chairman of Young Ameri growth in population. Therefore, Brow a powerful challenge. Perhaps even more so cans for Freedom; and that was the word ard County's 116,000 veteran population than in the case of the Vietnam War, the test also used by foxmer Treasury Secretary Wil are faced with at least a 30-mile trek to a is whether the American people, governed as liam Simon, who-unlike Mr. Buckley-is old enough to know better, particularly since the VA facility. The Miami Veterans Hospital they are, can adapt themselves sensibly to a is completely bogged down with work be changing international order. treaties are supported by his former col leagues, Gerald Ford and Henry Kissinger. cause Dade County is also growing rapid The Panama issue is not beclouded by the ly and veterans are also moving into patriotic need to "support our boys" in com Mr. Simon did not specifically oppose the bat or the presumed necessity to "stop Com treaties and, upon studying them, he no that area as well as into Broward. The munist aggression." Rather, in this instance, doubt wm come to see that they do not "give result is that Broward veterans must the nation is being asked to do what Britain, away" anything either worth having or se wait hours to see a doctor. Because of France, Belgium, Portugal, the Netherlands curely held. If anything, to reject the treaties waiting cases the doctor may be able to have already done with varying degrees of now would be the real "giveaway"-of the give only a perfunctory examination reluctance-given up colonial outposts no possib111ty of a peaceful and equitable solu tion to the nation's oldest and most difficult which may not be what the veterans de longer vital to their economic or security serve. The outpatient clinic set-up at needs, whose people are no longer wllling to problem of hemisphere relations, and of the accept outside domination, and whose con distinct political and diplomatic gains likely West Palm Beach, which opened on July tinued subjection to it would inevitably lead to be made from the new situation. 12, 1976, is more remote and inaccessible to political disaster, possibly to lingering and What would approving the treaties say to to Broward County veterans, and serv unwinnable guerrllla war. our ames around the world, Mr. Reagan has ices are far more limited. So there's only one real question about the asked, "about our leadership intentions, our Mr. Speaker, as days go by the need Panama. Canal treaties evolved by negotiators international role . . . our national defense for a VA outpatient clinic becomes more for the Ford and Carter Administrations, and capab111ty?" It would say that the United States, 1f not all its political leaders, has pressing in Broward County. It is esti scheduled to be signed by Panama and the mated that between 800 and 1,000 vet United States in Washington on Sept. 7. Can grown up in its world view and in the uses the United States yield a major colonial hold of its power. erans move into Broward County each ing by an orderly political process and after month. The facilities available to them in negotiations pursued over 14 years and Miami and West Palm are already in through four administrations of both major VA OUTPATIENT CLINIC FOR sufficient. Despite this, the Veterans' parties? BROWARDCOUNTY Administration advises that it has no The answer is not clear because of the plans at this time for the establishment American treaty ratification process. Two of an additional medical facility in thirds of the Senate must vote to approve the HON. J. HERBERT BURKE Broward County. I hope that my col canal treaties; senators are elected by the OF FLORIDA people; popular opposition to the treaties is leagues will agree with me that these widespread; hence senators who know better IN THE HOUSE OF REPRESENTATIVES 116,000 veterans living in Broward may be forced by their constituencies to vote Thursday, September 8, 1977 County deserve better treatment by the against treaties that in other governing sys VA and I hope you will join with me in tems would be more nearly subjects of ex Mr. BURKE of Florida. Mr. Speaker, supporting my bill for establishment of ecutive decision. I rise today to advise my colleagues of such a facility. The arguments Mr. Carter and his lleu the introduction of a bill to provide for tP.nants can make for the treaty are ample the establishment of a Veterans' Admin and persuasive-if heard with an open mind. istration outpatient clinic in Broward U.S. UNICEF IS A TRICK, The canalis no longer vital to American com County, Fla. NOT A TREAT merce, either for coast-to-coast traffic or in ternational trade; it is now of small mllltary In 1967 when I was sworn in as the importance; most major naval vessels of to Congressman for Broward County, Fla. HON. LARRY McDONALD day and the big oil supertankers are too I started working for improved veterans OF GEORGIA wide to use the canal; and in any case, the 1services for my constitutents. I have IN THE HOUSE OF REPRESENTATIVES treaties amply provide for the neutrality, sought in each of my five terms in the openness and m111tary protection of the Friday, September 9, 1977 waterway. House of Representatives to establish a Panama, moreover, passionately and un veterans hospital in my county. Mr. McDONALD. Mr. Speaker, with derstandably aspires to control of its own Despite the obvious need for such a Halloween and Christmas drawing near, territory and to a greater share of the eco facility, the Veterans' Administration UNICEF supporters in the United States nomic benefits the canal still yields. Latin has repeatedly refused to establish any will again be attempting to use our chil American nations without exception, even kind of medical facility in the county. dren to collect money and persuade those with right-wing governments, sup port Panama's demands. Nothing could be Although I can recognize and appreciate Americans to send out their atheistic more advantageous to the United States the need for evaluation procedures and Christmas cards. Appropriate posters among these nations, or in the third world study methods by the VA, I also recog will be displayed showing UNICEF feed generally, than a peaceable transition in nize these methods are too slow to cope ing milk to hungry children. But where Panama-and nothing would be more disas with the fantastic growth in Broward does your contribution go? Three out of trous than American refusal now to ratify •County. When I moved to Broward treaties so long and difficult in the making. every four dollars goes to overhead, County in 1949, there were 50,000 people Forbes magazine recently learned. The Against this compell1ng case, Senator living in Broward County. Today there Strom Thurmond states the absurdity that are 1 million people living in the same item from Forbes dated September 1, a canal across the middle of Panama is "a 1977, follows: United States canal adjacent to Panamanian geographic area; 116,000 by current territory." Ronald Reagan inaccurately states estimates, are veterans. 116,000 is a large U.S.' UNICEF Is A TRICK, NOT A TREAT that most Latin-Ameircan nations have "de population. In fact, it approaches the When a Forbes reader recently received his pended upon the knowledge that the canal population of cities such as Riverside, regularly scheduled appeal for funds from 28598 EXTENSIONS OF REMARKS September 9, 1977 the United States Committee for UNICEF, facturers have indicated that new-generation man of Chicago's 11th ward for 8 years. he decided to check with the National In airbags w111 be detonated with sodium azide, At the time of his election he was the formation Bureau (Forbes, Mar. 1, p. 16) and which is a highly toxic and explosive chemi acting mayor chosen by unanimous vote learned the following: cal compound. "An inserted correction to the U.S. Com of the Chicago City Council to fill the mittee's 1975 annual report indicates that The NHTSA airbag show is a phony, vacancy created by the death of the the $8,314,287 'allocated to UNICEF' by the from start to finish. Even though the late Mayor Richard J. Daley. Committee 'includes payment of the direct demonstration is explained at the begin Following are the remarks I made at production costs of greeting cards and cal ning, viewers could quickly forget what the dinner for the mayor and I welcome endars incurred by UNICEF itself, estimated they heard because of the dramatic im the opportunity to place in the CoNGREs to be $1,521,000.' In a footnote to the annual pact of the exploding airbag. SIONAL RECORD my OWll thoughts On this report, the Committee states that reported I seriously question the appropriate outstanding public servant: expenses of its own activities, totaling $4,- 014,960, do not include these direct produc ness of Federal officials, at taxpayers' ex REMARKS OF MR. RUSSO tion costs." pense, traveling around the country It is with great pride and pleasure that I "By the NIB's estimate, using the U.S. promoting a particular point of view. am here tonight in the capacity of Honor Committee's formulas, about 26 cents out of The Federal Government is supposed to ary Chairman of this dinner honoring our every dollar raised by card sales was avail be impartial and objective, and not take distinguished mayor, Michael A. Bilandic. able to UNICEF for its program activities." part in selling the American people on The Jewish National Fund of Chicago is In other words, relatively few of the pen their products. an organization whose extremely worthwhile nies collected by Halloween Trick or Treaters I urge everyone who sees this demon cause is to bring about social renewal and and only 26 percent of the funds raised by justice not only for the Jewish people but Christmas card sales get to UNICEF for its stration to keep in mind that what they for all of humanity. This evening, the Honor purposes. see is not what they will get if they are able Michael Bilandic is the recipient of the Trick or treat? forced to buy an airbag. Rather, they Jewish National Fund's most prestigious will get an unproven, costly, high tech award, the Boneh Israel/Builder of Israel nology device which may or may not Award. The members of the fund have done work. well by their organization in honoring our mayor tonight for he too is dedicated to that AffiBAG ALERT: NHTSA AffiBAG very same cause not only for the residents DEMONSTRATIONS PHONY of Chicago but for all of humanity as well. MAYOR MICHAEL A. BILANDIC OF Mayor Bilandic is truly a unique individ CHICAGO ual who possesses the qualities of a superior HON. BUD SHUSTER leader. He retains both a keen awareness and OF PENNSYLVANIA sensitivity to the needs and desires of those IN THE HOUSE OF REPRESENTATIVES HON. MARTY RUSSO whom he represents and is devoted to the OF n.LINOIS prosperity of our great community. Chicago Friday, September 9, 1977 IN THE HOUSE OF REPRESENTATIVES has long benefitted from his outstanding service and thus will continue to reap the -Mr. SHUSTER. Mr. Speaker, the Na Friday, September 9, 1977 tional Highway Traffic Safety Adminis benefits of his guidance now more so than tration, NHTSA, is engaging in a decep Mr. RUSSO. Mr. Speaker, recently I ever since his election as our new mayor. was pleased to have the opportunity to Being conferred upon him this evening is tive campaign to win public support for an award which establishes a forest in the the Federal order mandating airbags/ serve as honorary chairman of a dinner Judean Hills of Jerusalem that will bear the passive restraints in all cars beginning in honoring our esteemed Chicago mayor, name of Mayor Michael Bilandic forever. 1981. Michael A. Bilandic. Mayor Bilandic was Please know too, your honor, that both our NHTSA officials have been traveling chosen by the Jewish National Fund of city and our hearts wm also forever bear around the country and showing Mem Chicago as the recipient of their coveted your name. I am confident that all of the bers of Congress an airbag demonstra Boneh Israel/Builder of Israel Award. members of the Jewish National Fund and tion using a specially designed simulator. Today I would like to tell my col the residents of Chicago join me in con leagues a little about our new mayor and gratulating you for this great honor being The demonstration is a phony! be.stowed upon you this evening and in The NHTSA zealots, in an attempt to also share with them the remarks I wishing you continued success in all of your win public support for the airbag, are made on the occasion of the dinner hon future endeavors. Thank You. deliberately misleading the public by oring him. using an airbag simulator that is sub Mayor Bilandic has been a life-long stantially different from the airbag you resident of Chicago. He received his B.S. would get in a car. The airbag in the degree from St. Mary's College, Winona, "FRIENDS" IN SOUTH KOREA? demonstration vehicle inflates in 4 to Minn., and juris doctor degree from 5 se:onds, or about 20 times slower than De Paul University College of Law. it would inflate in a production vehicle. During World War II he served as a HON. ANDREW JACOBS, JR. Therefore, the noise level is also sub first lieutenant in the Marine Corps in OF INDIANA stantially lower and the startling effect Pacific campaigns. Prior to his service IN THE HOUSE OF REPRESENTATIVES less pronounced than in a real crash in the Pacific, he was graduated from Friday, September 9, 1977 situation. the Marine Corps V-5 program at the The airbag in the demonstrator is also University of Notre Dame. Mr. JACOBS. Mr. Speaker, it is re After becoming a member of the Illi grettable that on yesterday the House repacked, which would not be possible chose not to send a clear message to the after an airbag deployment. The fact is nois Bar, Mayor Bilandic engaged in the that the entire airbag system must be private practice of law. He has also Government of South Korea with regard replaced at a cost 2% to 3 times greater served as a master in chancery of the to its harboring of a fugitive from jus than the factory installation cost. circuit court of Cook County and is a tice in the United S'tates. Repacking the airbag in the NHTSA former special assistant to the Illinois Two amendments to the budget reso airbag show, even though a disclaimer attorney general. lution were offered on this subject. is announced before the inflation, could As a member of the city council, he The first, in effect, simply said to the lead many people to conclude wrongfully haC. served as chairman of its commit South Korean Government, "Stop har that a deployed airbag can just be re tee on finance since 1975. He was also boring the fugitive or we shall stop send packed and used again, instead of re chairman of the cc-·mcil's committee on ing you bread." pla:ed. environrr.ental control and vice chair I offered the second amendment Other distortions in the demonstration man of the committee on committees which, in essence, said to the South and rules. Korean Government surrender the fugi include: tive from American justice you are har The airbag simulator deflates much slower He is a member of the board of di than an actual deflation, thus indicating rectors of the Central YMCA Community boring or we shall not only stop sending erroneously that protection might be ex College and the Valentine Boys Club, and you bread but also military equipment. tended for secondary impacts. he serves on the Law Council of De Paul Question. Why would a dictator care Nitrogen tanks are used to inflate the air University College of Law. whether we supply him with bread to bag in the demonstration, despite the fact He was elected mayor of Chicago on give his people so long as we continue that both NHTSA and most airbag manu- June 6 of this year after serving as alder- supplying him with guns to keep them September 9, 1977 EXTENSIONS OF REMARKS 28599 in line? Which amendment could really compliance, which is the essential ele The first team from Ohio to represent be expected to bring back the fugitive? ment of a tree pest control program. The the central United States in Little League We hear a lot about our friends here deduction will not fully reimburse the World Series play, the Boosters placed and there in the world in argument for cost of removal, but it will provide some fourth in the United States and sixth in our tax money to help them. It seems assistance to property owners. tho world. that our "friends" in South Korea are The following is a text of the bill: These fine youths have brought ath the proverbial friends in need who are (H.R. 8844, 95TH CONG., 1ST SESS.] letic distinction to themselves and to not all that friendly when it comes to a A bill to amend the Internal Revenue Code the 1 9th Ohio District through their tiny gesture of reciprocity. o! 1954 to allow a deduction !or the cost o! impressive accomplishments in tourna removal o! trees required by the United States or a State or local government to be ment play and championship competi TAX DEDUCTION FOR REMOVAL OF removed to prevent the spread o! diseases tion. I congratulate them and wish them DISEASED TREES, H.R. 8844 caused by pests success in the coming season. Be it enacted by the Senate ancZ House of Representatives of the United States of TRmUTE TO SONNY JURGENSEN HON. DONALD M. FRASER America in Congress assembled, That (a) OF MINNESOTA part VII o! subchapter B o! chapter 1 of the IN THE HOUSE OF REPRESENTATIVES Internal Revenue Code of 1954 (relating to HON. WALTER E. FAUNTROY additional itemized deductions for individ Friday, September 9, 1977 uals) is amended by redesignating section OF THE DISTRICT OF COLUMBIA Mr. FRASER. Mr. Speaker, I have in 221 as section 222, and by inserting after sec IN THE HOUSE OF REPRESEII-'"rATIVES troduced legislation to permit property tion 220 the following new section: Friday, September 9, 1977 owners to deduct tree removal costs from "SEC. 221. REMOVAL OF TREES To PREVENT their Federal income taxes when such TH'E SPREAD OF DISEASE CAUSED Mr. FAUNTROY. Mr. Speaker and removal is required by Federal, State, or BY PESTS. Members of the House of Representa local law as part of a program to control "(a.) DEDUCTION ALLOWED.-In the case O! tives, I am proud to present the follow the spread of tree diseases caused by an individual who is an owner of real prop ing statement on behalf of one of the pests. erty, there shall be allowed as a deduction most outstanding citizens of the Nation all reasonable and necessary expenses paid in al Capital area-Christian Adolph New Left guese Africa-Guinea-Bissau, Angola, *Vice-President, David Robinson, Profes sects. In the late 1960's, CPUSA member and Mozambique-since the mid-1960's sor of African History, Yale University, CT. Blyden Jackson was perhaps ACOA's most in line with Castro's Tricontinental of *Treasurer, Jay Jacobson, attorney, Saxon active office staff member. Jackson's duties Third World subversion. The SAC did Industries, New York, N.Y. included organizing street demonstrations not mention that the Cubans have the CXXIII--1800--Part 22 28604: EXTENSIONS OF REMARKS September 9, 1977 responsibility of coordinating New Left SEVERE BLOW DEALT TO IMPERIAL THE FACE OF EVIL IN CASTRO CUBA support activities for the new revolution COUNTY IF RECLAMATION REGU ary governments in Angola, Guinea-Bis LATIONS STAND sau, and Mozambique as evidenced by HON. ELDON RUDD the Havana Solidarity Conference in OF ARIZONA which personnel of the Cuban U.N. Mis HON. CLAIR W. BURGENER IN THE HOUSE OF REPRESENTATIVES sion selected the U.S. delegates and or OF CALIFORNIA Friday, September 9, 1977 ganized the meetings. IN THE HOUSE OF REPRESENTATIVES Mr. RUDD. Mr. Speaker, overshad SAC has made much less use of an Friday, September 9, 1977 other recent FBI report: owed by the President's unpopular pro [The Southern Africa Committee) takes a Mr. BURGENER. Mr. Speaker, 1 posed new Panama Canal Treaty, which pro-terrorist position in such countries as would like to point out to the Members reports now indicate is opposed by any the Republic o! South Africa, Rhodesia and of the House the severe consequences where up to three-quarters of all the South West Africa. • • • Collective mem which could result in western agriculture American people, is his equally distress bers have made occasional trips to Africa to if proposed regulations issued August 25 ing initiative to reopen diplomatic rela meet with terrorist activists. Committee or by the Bureau of Reclamation are al tions with Castro Cuba .. ganizers are also related to such groups as lowed to take effect. These regulations I would like to recall some recent his the American Committee on Africa • • • relate to the so-called 160-acre limita tory, which can provide valuable instruc whose members are also reported to be in tion. contact with so-called liberation movement tion to all of us as we confront this workers. The regulations, which mandate here foreign policy issue. • • • The SAC is comprised o! approxi tofore overlooked enforcement of a We liberated Cuba from the Spanish mately 40 members in the New York area turn-of-the-century law long since out tyrant. Some cynical critics who are al who agitate in favor o! black terrorists in moded have thrown the Imperial Valley ways able to find an ulterior motive in Africa. • • • The Committee has supported in my congressional district into the first American actions have written that this terrorism in Africa for over ten years and · stages of agricultural and business was promoted by William Randolph now has a strong relationship to Guinea panic. The potential effects could be Hearst, who wanted exciting copy to Bissau, a member o! the U.N. • • •. Money help sell his newspapers. could be coming !rom this state, as well devastating not only for many family as Cape Verde, Mozambique and perhaps farmers and family businessmen, but Nonetheless, Americans fought and other black countries • • • who seem to also for the Nation's consumers, as Im died in Cuba. And when we dislodged the value their propaganda contributions to the perial County provides the fifth largest Spanish tyrant, we withdrew and pro terrorist cause. • • • The Committee is one county agricultural production value in vided continued assistance to a new in o! a network of groups which provide much this country. dependent nation we had created. support, both propaganda and material, to Enforcement of the 1902 Reclamation The United States extracted no com the subversive forces • • • in and o! Africa. Act, from which the Imperial Valley has mercial benefits. In fact, in trade and Members of the Southern Africa Col been exempt during virtually the entire support we contributed more than we lective of the SAC in 1977 include Bar period of its important agricultural de obtained. The Cuban Government was bara Barnes; Carole Benglesdorf; Wes velopment, amounts to ex post facto pol never as stable, successful, or benevolent Cohen; Paddy Colligan of the Workers icy which would set agricultural produc as we had hoped it would be. World Party Fidel Castro, who had par mittee on Africa and its related orga effects of these regulations should they ticipated in the Bogota uprising in 1948, nizations demonstrate the existing loop take effect. They should go out on the led an assault on the Moncada army post holes in U.S. laws which enable tax firing line and see first-hand the al at Santiago. exempt funds to be channeled to terrorist ready negative impacts just the promise Castro and about 150 followers held the groups, which permit groups which are this Federal mistake is having. mistaken belief that the soldiers would de facto serving as foreign agents to I would like my colleagues, all of revolt and welcome them. They didn't. In evade the registration requirements whom are truly interested in American that assault, a number of Cuban soldiers which clearly need tightening, and in the agriculture and the American consumer, in the barracks inflnnary were brutally Freedom of Information Act which en who will ultimately bear the burden of murdered. But the Castro forces were ables organizations working with inter these ill-advised policies, to join me in driven off, and in October Castro and his national terrorist groups to demand, and doing all we can to bring some sensi brother were brought to trial. They were receive, the Federal investigatory files on bility to any final regulations which are sentenced to 15 years in prison. them. .implemented. This is just another in In May 1955, Batista declared a general Clearly Congress needs an Internal stance of unwarranted Government in amnesty for political prisoners. The Security Committee which would be able trusion which is sure to have disastrous Castro brothers fled to Mexico and imme to investigate the extent of the problem, effects on the Imperial Valley and other diately began enlisting an army to invade hold the necessary hearings, and develop important western agricultural areas- Cuba to wrest power from Batista. new legislation to cope with this threat. as well as the Nation as a whole. In 1956, they made a landing with an September 9, 1977 EXTENSIONS OF REMARKS 28605 invasion force and were soundly defeated. Perhaps as a result of misinformation, ployed defensive weapons in Turkey and Castro and his brother, Raul, managed to or ineptitude, or blind prejudice, the Italy, for which the taxpayers paid mil escape and fled to a hideaway in the State Department o:tncials under the lions of dollars, were dismantled and mountains. Eisenhower administration had per brought home. A year later, Herbert L. Matthews, a mitted Castro to come to power. Now I review all these facts to stress that, reporter from the New York Times, inter under Kennedy the United States be even though we had the strength, our viewed Castro in his mountain hideaway, trayed the men we had enlisted to in leaders lacked the will. and in three front-page articles pictured vade Cuba, and condemned them to cap Cuba is the center of Communist in Castro as a peasant reformer-a white ture, death, and imprisonment. trigue in Latin and South America. knight preparing to rescue the Cuban Immediately following that disastrous From this secure base, Communist oper people from slavery. defeat, known in history as the Bay of ators have fanned out into all of the Castro had money and weapons, pro Pigs, we participated in two deceptive Southern Hemisphere countries, and vided by the Communists and by some hoked-up schemes to ransom the pris have met with success. disenchanted politicians. oners. When we hear the issue of normaliza In 1958, he seized power because the The first was tractors for Cuba--and tion of relations with Cuba debated on United States had adopted an anti that fell of dead weight. The second, television and in the press and I hope Batista policy, refused to sell arms to masquerading as an American Red Cross it will be debated, we should keep in Cuba, discouraged other nations from operation, resulted in American industry mind this brief history. selling arms, and publicly withdrew its contributing about $50 million to Castro Castro needs the United States. Any support of the Batista regime. in return for the release of about 1,000 thing we do to strengthen his regime There is no mistake in this. The U.S. remaining Cuban patriots. will strengthen the center of communism State Department, headed by Christian In October 1962, President John F. in the Western Hemisphere. And make Herter, William Wieland, and Roy Ru Kennedy informed the Nation that no mistake about it, communism is our bottom, were responsible for the success Russia had installed offensive intercon deadly enemy. of Castro's coup. tinental ballistic missiles in Cuba. We Mr. Speaker, great nations survive Indeed, Senator John F. Kennedy de went on military alert. Reserves were when their policies are based squarely scribed Castro in glowing terms, and called up. And in brave words, Kennedy on national self-interest. What would we compared him to Simon Bolivar. declared we would have onsite inspection possibly gain by normalizing relations The American press could see great and that Russia must remove the with Castro's Cuba? virtue in a dictatorship of the left, and weapons. Those advocating this monstrous step no menace in the Communist influen-ce. As the press told the story, we had will tell us that we would benefit from Despite the fact that Castro had been come to the brink of nuclear war. The world opinion. They say that those na press applauded when Kennedy backed tions envious of our power and strength involved in the Bogota uprising, he was down, accepted aerial reconnaissance for not publicly identified as a Communist. onsite inspections, guaranteed the con would applaud such a benevolent ges In fact, not until a year or so later, when tinued existence of Castro's regime, and ture. But world opinion did not stop the Castro proclaimed his devotion to com withdrew our missiles from Turkey and forces of evil in World War II. It was munism, were we told that Cuba was in Italy. American power that preserved freedom the hands of the Communists. Here is the truth of that situation. In in this world. And world opinion won't We heard little of the public execu 1954, President Eisenhower created a bring peace to the Middle East or to sub tions, the firing squads, El Paredon, the special committee to be concerned with Saharan Africa or to Korea. brutal treatment of political prisoners. the possibility of surprise attack against Normalizing relations with Cuba un But about 600,000 Cuban patriots who the United States by the Soviets. der Commun.ist dictator Fidel Castro escaped that island nation longed to This committee secretly developed the will only serve to strengthen the hand of overthrow the Communist dictator Fidel U-2 reconnaissance aircraft, and by 1956 his Communist regime, which has the Castro. And the U.S. Government, with we were flying over the Soviet Union on longest standing worst record for violat the full backing of President Eisenhower, a regular basis. The U-2 was a remark ing human rights in this hemisphere. supported that effort. able defensive weapon. It had no landing We are not dealing with abstract con Approximately 1,500 Cuban patriots gear to save weight. It had to be launched cepts of human rights when we talk were recruited and trained at secret from a mother airplane. It could fly 4,000 about castro Cuba. We are talking about bases in Guatemala by American Marine miles at altitudes of 8 or 12 miles, and savage torture, personal degradation, instructors. The United States provided its cameras could photogi-aph a swath of and inhumane sentences for any Cuban arms and all other support, including a Russian territory 135 miles wide by 3,000 who politically disagrees with or opposes fleet of B-26 airplanes. miles long. Castro. The military operation was planned to The definition from those aerial photo The sheer number of political prison commence with an attack by 16 B-26's, graphs was so good that it was possible ers in CUba should be enough to give to be launched against Castro's airfields to read a newspaper headline photo President carter sincere second thoughts and to catch the Communist aircraft on graphed from 8 miles in the sky. about his current initiatives. the ground. But when John F. Kennedy We knew from our aerial reconnais Estimates vary widely, but ~o.ooo po was elected President·, Ike put the whole sance that Russia had very few ICBM's litical prisoners is an accepted :figure. program on hold-believing that the new no hardened bases. Despite Khrushchev's Even Castro himself has admitted indi· President should make the ultimate boast of missile superiority, we knew that rectly to 10,000-which is the equivalent decision. our missiles, flying from hardened silos, of about a quarter million political pris Kennedy approved the program. But outnumbered the Russians' 5 to 1. oners in a country the size of our own. a week or two before it was to be put When the U-2 was shot down in May Our Government should admit the into operation, Kennedy and his advisers 1960, Khrushchev abused Eisenhower, face of evil in Castro Cuba. look at it changed the designated landing spot and we took it. But it wasn't the end of squarely, and denounce it in every possi from a seaport serving the town of Trini the spy program. Within 3 months, we ble way. We should certainly not em dad, to Giron, a marshy area on the had launched the SAMOS satellite to brace this totalitarian Communist re western coast. make the same photographs of Soviet gime and give it added strength. Then Kennedy and his advisers de military capabilities. cided that if 16 B-26's participated on In 1962, President Kennedy knew be the initial flight, it might appear to the yond any question of a doubt that the AWACS TO IRAN world that the United States was sup Soviets had only a very few ICBM's, that porting the effort. So they arbitrarily cut they were exposed, that we could de HON. BOB WILSON the flight from 16 to 8. Then Kennedy stroy them, and that they were really OF CALIFORNIA canceled the second-day assault, which no threat to us. was to have been made with 16 B-26's. On And yet Kennedy backed down. And IN THE HOUSE OF REPRESENTATIVES the third day, the landing party had no for all we know, there are still Soviet Friday, September 9, 1977 aerial cover at all. missiles in Cuban caves. Our just-de- Mr. BOB WILSON. Mr. Speaker, with 28606 EXTENSIONS OF REMARKS September 9, 1977 regard to the current controversy sur by transferring funds to Federal Reserve By all accounts, the Prudhoe Bay nat rounding the sale of seven airborne banks, these :fluctuations complicate the ural gas :fields contain the largest known warning and control systems-AWACS Federal Reserve System's conduct of reserves in North America-at least 20 to the Government of Iran, I believe such monetary policy, as evidenced in April. trillion cubic feet of proven productible a transfer would be in the best interests Mr. Speaker, with the favorable re reserves. While this gas is not a panacea of both our countries. porting of H.R. 5675 from the Senate to our gas shortages in the United States, Iran presently has no reliable air de Banking Committee in July, I am anx it will substantially lessen the demand fense system to protect itself against at ious of the bill's passage by the full Sen being placed on our dwindling natural tack. Because of the country's rough ate and remind my colleagues that the gas supplies. terrain, a ground radar system would enactment of this legislation will pro I truly hope that this issue can be re cost billions of dollars, not to mention the mote efficient cash management by the solved as soon as possible in order that construction of numerous radar sites Federal Government, enabling the U.S. preliminary efforts can be started to necessary to bring Iran's defense even Treasury to earn $50-$100 million of ad construct the pipeline. Construction of close to what the AWACS can provide. In ditional revenues annually. Thus, the the 2,700-mile pipeline will cost nearly this light, there is little doubt that the Government will be able to make effec $7 billion. Any delay caused by the Con use of AWACS by Iran is the most cost tive use of tax dollars. gress will only result in increased con effective and militarily effective solution struction cost. Therefore, I urge that the to their air defense needs-and there Congress accept the Alcan proposal with seems little doubt about our need for a ALASKAN NATURAL GAS PIPELINE out any unnecessary delays. strong, friendly Iran. As Assistant Sec retary of State Alfred Atherton said late in July, "denial of the sale would raise HON. ELWOOD HILLIS RABBI DR. ANDREW J. ROBBINS serious doubts in Iranian minds about OF INDIANA the seriousness of our concern for Iran's security and about the long-standing IN THE HOUSE OF REPRESENTATIVES HON. LESTER L. WOLFF United States-Iranian relationship." I Friday, September 9, 1977 OF NEW YORK could not agree more. Mr. HILLIS. Mr. Speaker, for a number IN THE HOUSE OF REPRESENTATIVES I also believe that the alarm over the of years, the Congress, the energy in Friday, September 9, 1977 possibility of the compromise of the sys dustry, and numerous Federal agencies tem's highly classified and sophisticated have debated which of many possible Mr. WOLFF. Mr. Speaker, I would like electronics equipment is out of propor systems would be best to deliver Alaskan to bring to the attention of my colleagues tion to the realities of the situation, even natural gas to the contiguous States. the achievements of Rabbi Dr. Andrew taking into consideration the fact that During the 94th Congress, this debate J. Robbins who has just retired as the we could remove some of the more sen heated as the Alaskan oil pipeline drew spiritual leader of Temple Emanuel in sitive items prior to a sale. nearer to completion. The debate became New Hyde Park. He is to be honored Mr. Speaker, given the factors I have a political issue within the Congress with this evening at a special service andre mentioned, together with the conditions the introduction of several bills author ception at his temple. under which the transfer of the AWACS izing the construction of various pipe Prior to entering the rabbinate, Rabbi would take place, I would hope that we lines and methods of delivery. For a Robbins had distinguished himself as an would see that a transfer of the AWACS while, it appeared that regional interest educator and historian. A graduate of to Iran would be mutually beneficial and would be the determining factor instead the University of London, where he also would remove any barriers from its con of the merits of the individual proposals. obtained his Ph. D., Rabbi Robbins summation. Fortunately, Public Law 94-586, the served as an instructor to the office of Alaska Natural Gas Transportation Act strategic services in London during of 1976, was enacted as an alternative to World War ll. Following his immigra the authorization bills supporting the tion to the United States he received a TAX AND LOAN ACCOUNT master of Hebrew letters degree from LEGISLATION various proposals. This measure estab lished a process whereby the selection of Hebrew Union College in 1953, and was a transportation system and route would ordained by that school. HON. MARK W. HANNAFORD For 27 years Rabbi Robbins has be based on the best interest of the en guided Temple Emanuel's congregation OF CALD'ORNIA tire United States. As a result of the proc with both compassion and foresight. He IN THE HOUSE OF REPRESENTATIVES ess established by Public Law 94-586, President Carter recommended the con initiated dialog services that brought the Frida11, September 9, 1977 struction of the Alcan Pipeline Co.'s pro Rabbi and the congregation together for Mr. HANNAFORD. Mr. Speaker, on posal on September 8, 1977. informal discussions concerning Judaism April 25 the House of Representatives I commend the President for his de and the community at large. As a com overwhelmingly passed H.R. 5675, a bill cision. The Alcan proposal was the most munity leader Rabbi Robbins was in to authorize the Secretary of the Treas reasonable option available to the Presi strumental in promoting interfaith ac ury to invest public moneys, and for dent. The importance of the President's tivities, and he himself has lectured and other purposes. Basically, this bill per decision cannot be underestimated due preached in many churches. mits Treasury to earn interest on its tax to its economic and social impact on the Rabbi Robbins has also been actively and loan account funds deposited in Western and Midwestern States. There involved with the Long Island Jewish commercial banks and in other deposi is no question that the President made community as cofounder of the Long Is tary institutions. the right choice in recommending the land Association of Reform Rabbis, of As a 1974 Treasury Department study Alcan proposal over the El Paso proposal. which he was the :first president. revealed, the free use of Federal tax and Under the provisions of Public Law Although Rabbi Robbins will be sorely loan account funds reduced potential 94-586, the Congress now has 60 working missed in his position as the leader of earnings of the Federal Government and days to accept or reject the Alcan pro Temple Emanuel's congregation, he will overcompensated financial institutions posal. Although I am sure there will be continue to serve both it and the com for services rendered in connection with some efforts made to reject the Presi munity as Rabbi Emeritus. Through his these accounts. Specifically, the 1974 dent's recommendations in hopes of knowledge and guidance he will con Treasury report claimed that commercial gaining approval of the El Paso proposal, tinue his everlasting contributions to banks were able to generate earnings such a rejection could only have the Judaism. which exceede·d the expenses of han most severe consequences to this Na It is my honor to pay tribute to such a dling Federal T.T. & L. accounts by $170 tion's energy needs. Can anyone forget distinguished constituent, and I hope million. the hardships of last winter caused by that in retirement Rabbi Robbins will While Treasury has recently adopted low supplies of natural gas? I can assure continue his life in the comfort and hap stopgap measures to reduce the amount you, Mr. Speaker, that my constituents piness that he provided for so many who of T. T. & L. funds in commercial banks of central Indiana have not forgotten. looked to him for spiritual leadership. September 9, 1977 EXTENSIONS OF REMARKS 28607 OHIO'S FIFTH DISTRICT POLL 14. Do you believe the removal of U.S. hours. The history of previous minimum troops !rom South Korea would be a sig wage increases has proven this to be the nal !or a Communist take-over? Yes, 72; case. In April 1974, we had 17 employees; to no,28. day we have 13 employees and they are work HON. DELBERT L. LATTA ing shorter hours per week.'' OF OHIO I would like to emphasize the fact that the IN THE HOUSE OF REPRESENTATIVES above example is not an Isolated case, but MINIMUM WAGE HIKE CONCERNS Is representative of many of our businesses Friday, September 9, 1977 In South Dakota and the Midwest. One of our hospital directors has indicated that Mr. LATTA. Mr. Speaker, the results HON. JAMES ABDNOR H.R. 3744 would increase the hospital's an of my 1977 questionnaire indicate that OF SOUTH DAKOTA nual payroll by at least $300,000. In order to the American people have broad under IN THE HOUSE OF REPRESENTATIVES accommodate the increase, they would have standing and strong opinions on a wide to lay oft' 20 to 30 employees, and their pa range of national and international is Friday, September 9, 1977 tient care programs would ultimately suffer. sues. For the benefit of my colleagues in Mr. ABDNOR. Mr. Speaker, on July I have received a great many similar re the House, as well as Members of the 26, I presented the following testimony sponses from business, both small and large, U.S. Senate and administration, I am in South Dakota, and virtually all of the in before the House Rules Committee con put that I have received from my constitu submitting for the RECORD the text of cerning proposals to raise and index the ency has been in strong opposition to an in my annual district poll, with the re Federal minimum wage. crease in the minimum wage as proposed in sponses registered by thousands of my STATEMENT OF HON. JAMES ABDNOR H.R. 3744. constituents, as follows: RE H.R. 3744. One popular justification of increases in QUESTIONNAIRE I would like to take this opportunity to the minimum wage is that the increase will be absorbed by wealthy owners or through [In percent] express my strong opposition to H.R. 3744, I a. lower profit margin. Numerous studies of 1. Do you approve of the following Carter the minimum wage bill. strongly believe that any increase in the minimum wage the impact of minimum wage legislation in energy conservation recommendations: dicate that what actually occurs is that the (a) Stand-by gasoline taxing authority of would only serve to put more people out of work and fuel our high inflation. Those workers bear a good part of the cost of in 5 cents per gallon per year for the next ten creases in the minimum wage through man years? Yes, 16; No, 84. groups that would suffer the most from such a proposal are those that are already suf hour reductions and other types of adjust (b) Standby gasoline rationing authority? ments, including price decreases for mate Yes, 40; No, 60. fering from high unemployment, such as rial suppliers, reduced quality of customer (c) Graduated tax on new automobiles our young people, the handicapped, and our services and price increases for consumers. unable to meet certain federally established minority groups. Also, there is evidence to indicate that the mileage standards and federal payments for I am especially opposed to any kind of more workers affected by the increase, the purchasing small ones? Yes, 39; No, 61. minimum wage indexing mechanism, which more likely it is that they will suffer some (d) Tax credits for insulating homes after has been proposed in H.R. 3744. Such an in direct hardship as a result of it. The more a given date? Yes, 59; No. 41. dexing provision is a perfect example of substantial the payroll costs of the increase (e) A wellhead tax on American regu buUt-in inflation and would be a serious blow in the minimum wage, the more adjustments lated crude oil which could ultimately add to our Nation's economy. At a time when are made in worker assignments and hours. 7 cents per gallon to gasoline prices? Yes, 13; inflation is dangerously high, and threaten Perhaps the worst impact of the minimum No,87. ing to go even higher, it is incredible that wage affects the small businessman. It is a 2. Do you believe government controls we are even considering such a proposal. If harsh reality that minimum wage rates do have hampered new exploration of oil and the minimum wage was tied to an Index, it force some firms to close and others to shift natural gas? Yes, 68; No, 32. is very likely that we would never be able to to new industries. There are some who would 3. President Carter has recommended that get a handle on our inflation problem. argue that the decrease in the number of the money necessary for maintaindng the It is paradoxical that those groups which small firms in these industries is not really Social Security Trust Fund no longer come are arguing for a higher minimum wage are bad. They would argue that the firins were from employer-employee contributions ex the first to complain when these proposals probably marginally productive and that clusively but that a portion of its funds increase business costs and put more people their elimination makes the industry more come from general tax revenues. Do you out of work. And as a solution, Congress is emcient as a whole because larger plants favor the proposal? Yes, 51; No, 49. expected to respond to this forced unem can take advantage of economies or scale. 4. Should pending legislation to permit ployment by providing public works job This however, is not borne out by the evi people to both "register for, and vote In, a programs. dence. Size is no guarantee of emciency, and federal election at an appropriate polling It has been clearly shown by a number the undermining of small firms by the min place" on the day of an election pass the of studies that increased inflation and high imum wage may in fact be contributing to a Congress? Yes, 35; no, 65. er unemployment can be directly attributed decline in productivity rather than the oppo 5. (a) Should we resume diplomatic rela to minimum wage increases. It has to be site. tions with North Vietnam and Cuba? Yes, remembered that such an increase would I would like to make special mention of 41; no, 59. affect not only those individuals earning less the impact of a minimum wage increase on (b) If diplomatic relations resume, should than the new level but also those who are teenagers, the handicapped, and part-time they be given foreign aid? Yes, 3; no, 97. presently earning more. In order to maintain workers. Businesses have historically trained 6. Do you favor turning the Panama wage differentials, all wages will rise at all young people by providing them job oppor Canal over to the Panamanians? Yes, 10; No, levels. Because of these wage relationships, tunities at pay levels usually commensurate 90. a self-perpetuating indexing mechanism with the minimum wage. If the minimum 7. Do you believe tha.t Big Labor wields will guarantee annual inflation. wage becomes too high, businesses would be too much power In the American political An indexing of the minimum wage much better oft' to hire full-time, experi system? Yes, 88; no, 12. w111 also guarantee annual unemployment. enced personnel. There are experienced indi 8. Should federal employees be given the Whether the labor bosses in this country will viduals who would be ready and willing to right to strike and to bargain collectively? admit it or not, our small businesses can work at a guaranteed high minimum wage, Yes, 19; no, 81. not afford to absorb a wage increase with and employers would understandably be jus 9. Do you favor efforts to unionize the out either raising prices or reducing the tified in turning to them over young, inex Armed Forces? Yes, 4; no, 96. number of employees. Usually a business is perienced workers. The unemployment rate 10. If the United States unUaterally cut faced with doing both. To give you a good for our youth in this country is disgracefully back its strategic mllitary defenses, do you example of the effects of a minimum wage high, and it would be a crime to take away belteve the Soviet Union would do the increase, let me quote from a letter that I those opportunities, however llmlted, that same? Yes, 8; no, 92. recently received from a small businessman are presently available. There 1s no logical 11. Do you favor terminating the All in South Dakota: reason that this bill shouldn't contain a v.olunteer Army and reinstating the Draft? "We have been in the retail business since youth differential so that our businessmen Yes, 42; no, 58. 1922 and have seen good years and bad years. can truly provide employment opportunities 12. Did you approve of the Presidential In 1975, due to both inflation and the for our young people. pardon extended Vietnam draft-dodgers? drought, we suffered a small loss, our first Our businesses have .also provided em Yes, 25; no, 75. loss since the 1930's. And in 1976, our net ployment for our handicaped citizens by giv (a) Do you approve of legislation to give profit was less than 1% of sales; so we do not ing them opportunities to develop their job them GI benefits? Yes, 5; no, 95. have any leeway or 'fat' in our operation to sk1lls. Again, if the minimum wage becomes (b) Do you favor the announced plan to absorb any wage increases and would have too high, these individuals will be priced upgrade their discharges? Yes, 11; no, 89. to raise our prices and hope that the cus out of the market and we cannot realisti 13. Do you favor de-criminalizing the use tomers would pay these increases and also cally expect our small businesses to pay un of marijuana? Yes, 27; no, 73. reduce our number of employees and store reasonably high wages to provide these train- 28608 EXTENSIONS OF REMARKS September 9, 1977 ing opportunities because they simply would in this century. The following is a news Worst of all, it is an established fact that not be able to afford it. report which appeared in the New York Mr. Pepper, before his marriage, practiced I am also very concerned about the re celibacy." duction of the tip credit. Although I am Times today entitled "At 77, Florida's Eight years later, Mr. Pepper tried to make pleased that we aren't looking at a. proposal PEPPER, a New Deal Veteran, Is Still Go a Senate comeback, but lost to Spessard L. to eliminate this credit. I am nevertheless ing Like 38." I would like to share this Holland. Finally, in 1962, he won a seat in strongly opposed to the reductions that have with my colleagues so that those who do the House. been proposed in HR. 3744. These reductions not know him well can better appreciate The "Senator", as many colleagues still would drastically increase labor costs for the stature of this remarkable and call him, sets almost as fast a. pace for him tipped employees and would needlessly force unique patriot. I hope it will inspire self today as he did nearly 40 years ago. He many such employees from their jobs. young people beginning in politics to suf seldom misses a floor vote in the House. He In conclusion, I would like to again urge is a member of the House Rules Committee, my colleagues to defeat H.R. 3744 and any fer graciously the slings and arrows that which decides which bills reach the floor, other unreasonable minimum wage proposal are bound to come their way, to learn and he is a. chairman of the Select Committee that might come before us in the House. An that others before them suffered the same on Aging. increase in the minimum wage would put a way. I am sure that all senior citizens He usually works 12 hours a day, he still severe strain on our struggling economy. It who know Mr. PEPPER are inspired by his plays golf on weekends and he and his wife would fuel inflation and increase unem living example of youthfulness and pur have an active social life. ployment, and it would be a. slap in the face pose. In short, I admire CLAUDE PEPPER Young staff members sometimes find to those disadvantaged groups which we themselves panting to keep up with him. have so often sought to help. The weight of he is a :fine example of the best qualities "I go like a. house afire, I guess," he says. evidence argues a.ga.inst an increase in the of man of of our Nation. "I don't know why they don't quit." minimum wage, and it especially argues AT 77, FLORIDA'S PEPPER, A NEW DEAL VETERAN, convinced that older Americans are being against an indexing scheme such as that pro Is STILL GOING LIKE '38 wrongly depicted on television, in books, in posed in H.R. 3744. (By Marjorie Hunter) movies, in newspapers, Representative Pep We have to look beyond the surface of this WASHINGTON, Sept. B.-Representative per is determined to focus attention on what legislation and recognize the adverse conse Claude Denson Pepper suspects that if he he views as age stereotyping. quences that would result from its passage. were cast in a. role on a television show, he Thank you very much. would be depicted as a. doddering, toothless old man. Claude Pepper was anything but doddering and toothless today as he cele LABOR LAW REFORM ACT brated his 77th birthday by conducting a. A LEGEND IN HIS OWN TIME House committee hearing into age stereo typing on television. HON. MARTY RUSSO The Florida Democrat, one of the last OF ILLINOIS HON. J. HERBERT BURKE veterans of the New Deal stlll serving in IN THE HOUSE OF REPRESENTATIVES OF FLORIDA Congress, arose at 7:30 A.M., arrived at his IN THE HOUSE OF REPRESENTATIVES office at 9, rushed off to a meeting of Miami Friday, September 9, 1977 labor leaders and contractors and then, as Friday, September 9, 1977 Mr. RUSSO. Mr. Speaker, the Chicago the clock struck 10, walked briskly into a. Tribune is not known for its automatic Mr. BURKE of Flordia. Mr. Speaker, crowded hearing room where he gently endorsement of legislation supported by yesterday was the 77th birthday of our chided television executives. "Today," he announced, "I turned 77 years America's trade unions. With this in friend and colleague, CLAUDE DENSON old and I must confess that I do not feel mind, I believe my colleagues may :find PEPPER. I cannot let the occasion go by demonstrably different than I did at 60. interesting this recent Tribune editorial, without a few personal words about the "Yet, I expect to weather an onslaught of which deals with H.R. 8410, the Labor inspiration of this man to all mankind. well-intentioned persons who wm tell me Law Reform Act of 1977. Everyone who seeks public office or to that I do not look my age. These comments IN FAmNESS TO LABOR lead people anywhere hopes that they raise the question: How, precisely, does one expect a T7-year-old to look? As powerful as organized labor has become, will be able to do something to improve it still has some problems when, in striving mankind and win a niche in the history "I suspect that a 77-year-old is expected to appear toothless and doddering, a cari for collective bargaining. it bumps heads books. CLAUDE PEPPER has WOn more cature of his or her younger self." with employers. The National Labor Rela than a niche in the annals of U.S. his His hair is grayer now, and there is just tions Board, for example, has no time limit tory-he could be a whole chapter by the suggestion of a. stoop to his shoulders, to force an election; this enables some em himself. Few Americans, if any, have but Claude Pepper at 77 looks little different ployers to stall for up to a. year with lt!ga.l ever served under as many Presidents as than he did in 1938 when he appeared on a. challenges to the validity of employe author ization cards. Senator PEPPER. He served under Presi Time magazine cover as "the Florida. fighting The White House is expected to support dents Roosevelt, Truman, Eisenhower, cock [who] wlll be a White House weather compromise legislation to be introduced by Kennedy, Johnson, Nixon, Ford, and vane." Those, perhaps, were his days of greatest Sen. Harrison Wlllia.ms and Rep. Frank Carter and it looks like he may serve glory. He had been elected to the Senate in Thompson, both pro-labor Democrats from under two or three more. CLAUDE is a 1936 and promptly allied himself with his New Jersey. One provision would require such very unique person. It can truly be said hero, Franklin D. Roosevelt. union-representation elections in small, un that he is not getting older, he is getting As one of President Roosevelt's staunchest contested cases within 15 days. For large, better. Although what he has accom supporters he helped pioneer Lend-Lease contested cases, the NLRB would have to act within 75 days. That would seem to give plished in his life would dwarf the legislation. He cosponsored repeal of the poll either side reasonable time to exercise its achievements of almost anyone in the tax. He promoted compulsory m111tary serv rights adequately. But because legitimate world, he still continues to explore and ice and was hanged in effigy on the Capitol lawn by outraged mothers. disputes in this area. are complex a. limit conquer new territory. In addition to be By the late 1940's, it appeared that he of anything less than 2 Y:z months would be ing an overachiever, CLAUDE is also one would make the Senate his full-time career. unfair. of the most beloved Americans ever. As Another organizing problem for labor is In 1950, he was defeated by a one-time pro that employers can fire key workers for en a Republican, I have frequently disa tege, George H. Smathers, a man he had As gaging in union activities and thus intimi greed with him on issues. a fellow helped to win a. House seat a. few years date other employes. Although such firings Floridian, we have rarely seen eye to earlier. are illegal, the severest penalty now is likely eye on policy matters but my affection It was one of the most bitter campaigns to be the payment of back wages. Labor for CLAUDE PEPPER comes from respect, in Florida history, with opponents labeling originally wished to triple the penalty. But admiration, and confidence that he has Claude Pepper as a "nigger lover," a "spell that would probably produce a flurry of the best interests of our Nation at heart. binding pinko" and a. man who was "soft on triple-pay suits, regardless of merit. Perhaps there is no other :figure in our Communism.'' It would also unduly inhibit employers time who has exhibited consistently the It was in that campaign that Mr. Smathers, from firing incompetent workers who might speaking to a largely uneducated gathering claim that they were being fired for union dignity, grace, and charm that CLAUDE in northern Florida., said: activism. Even the bill's compromise pro PEPPER has. He is everyone's friend, the "Are you aware that Claude Pepper is posal to double back wages would be inhibit mighty and the sman, and we all love known all over Washington as a. shameless ing, but to a. lesser degree, while striking him. If he were to write a book about extrovert? Not only that, but this man is what seems to us as a !air balance between his life it would probably become an in reliably reported to practice nepotism with the rights of employers and employes. stant bestseller because he has had a his sister-in-law, and he has a sister who The biH's proposal to help speed up cases front-row seat for all the major events was once a. thespian in wicked New York. by increasing NLRB membership to seven September 9, 1977 EXTENSIONS OF REMARKS 28609/ from its current five should benefit both Mr. Speaker, I want to extend con individual taxpayers and thus hurt the sides, which is more tna.n we can say for the gratulations to all of the employees and economy. notion of having "routine" appeals !rom management personnel at Nannette President Carter has promised a. major NLRB hearing-officers' ruling decided by only overhaul of our tax laws to make them two board members. Appellants may not con Manufacturing Co. and bring this great simpler, fairer and more encouraging to sider their cases any more routine than per accomplishment to the attention of the economic growth. Although his proposals sons who appeal civil or criminal disputes Members of this body. are still in the planning stage, his compre to the Supreme Court, where having two jus hensive tax package is expected next month. tices out of nine decide would be more like The options he is considering have been legal lottery than constitutional review. narrowed. They include: Automatic enforcement of NLRB decisions TAX REFORM An across-the-board cut in individual unless an appeal is filed within 30 days of income-tax rates; an order, as proposed by the blll, also seems A tightening of limits on deductions for to be a. way to expedite decisions without un HON. LEE H. HAMILTON home mortgage interest; duly restricting the a.blllty of either side to Stronger restrictions on health care and OJ' INDIANA casualty-loss deductions; respond. IN THE HOUSE OF REPRESENTATIVES More dangerous is the proposal to deny Repeal of the deduction for state and local U.S. government contracts to employers who Friday, September 9, 1977 sales taxes; "wilfully" violate labor laws. A curb on the use of business expense This would do more than redressing a. pos Mr. HAMILTON. Mr. Speaker, I accounts; sibly legitimate grievance. It would tend to would like to insert my Washington Re Repeal of the provision allowing capital discourage employers from lifting a finger port for August 17, 1977, into the CoN gains to be taxed at half the ordinary rate; against intolerable employe actions for fear GRESSIONAL RECORD: and of losing the case before the NLRB and the Incentives tor business investment (per TAX REFORM haps through lower corporate tax rates, courts and therefore o! losing federal con Why can't we have a. simpler tax system? tracts upon which the livelihood of em increased investment tax credits, or an end Why must our tax forms be so confusing that to double taxation of corporate dividends). ployers and workers alike may depend. That only one in four taxpayers c81n complete would represent the kind of unhealthy shift President Carter's tax package wlll no them without help? Why can't we enact tax doubt spark considerable debate. A recent in balance between employers and employes laws that would put people with the same in that has got both sides into trouble in the survey reveals that a. full 64% of the general come on an equal footing so that each per public believes that our tax syf;tem is unfair. sagging economies of other industrial son would pay his fair share? nations. Only one in four, however, demands that tax Most of the complications and inequities revision be given top priority by federal law We support certain of these proposed which trouble taxpayers are directly re changes because they strike us as !air. If makers-an indication, perhaps, of a soft lated to the manner in which our tax system ness of popular support for substantive tax there has been a.n agreement whereby the is used for purposes other than raising rev Carter administration will support the Wil reform. In this context, it remains to be seen enue. By not collecting all the taxes the gov whether the President's proposals will liams-Thompson proposals in exchange !or ernment might on certain types of activities, labor's abandonment of its more obnoxious galvanize public support or fall prey to our tax laws promote various social and eco parochial interests. proposals such as prohibiting state right-to nomic goals. Among other things, home own work laws, good enough; many of these pro Tax reform has always been popular. No ership and investment in private enterprise one likes to pay taxes, and promises of posals remain what they always have been are encouraged, state and local governments monopolistic special interest schemes that reform and simplification of the tax laws are subsidized, the cost of moving from one have great appeal-at least until specific penalize the average worker as well as the job to another is underwritten and schools, consumer. proposals are put forward. Everybody wants churches and charities are supported. to have reform and simplification as long as The direct cost of these "tax preferences" someone else has to give up his benefits. is staggering. The federal government ·will Meaningful tax reform, however, must in lose nearly $127 billion in revenue for the volve all of us. Although the rich benefit SYMBOL OF EXCELLENCE fiscal year beginning October 1 because of disproportionately from tax preferences, the them. Equally alarming is the fact that lost largest and most costly tax preferences are revenue could amount to $167 blllion in those enjoyed by nearly everyone. HON. RAYMOND F. LEDERER fiscal year 1982, primarily because infiation OF PENNSYLVANIA adds to the value of tax preferences and Congress continues to give more tax breaks IN THE HOUSE OF REPRESENTATIVES to one special interest group or another. Friday, September 9, 1977 These figures, however, are hardly surprising EXPLANATION FOR ABSENCE FROM when we consider that more than half of all TWO VOTES SEPTEMBER 8, 1977 Mr. LEDERER. Mr. Speaker, I would income presently escapes tax3.tion. like to call the attention of my colleagues The cost in terms of complexity and in in the House to a special accomplish equity of these tax preferences is equally HON. ROBERT W. EDGAR ment earned by a business in my con staggering. The host of exemptions, exclu gressional district. sions and deductions not only make our tax OF PENNSYLVANIA The employees and management of laws complicated and confusing, but have IN THE HOUSE OF REPRESENTATIVES the Nannette Manufacturing Co. have spawned a blllion dollar industry to prepare Friday, September 9, 1977 tax returns. received the Sears "Symbol of Excel Any serious efforts to reform or to sim Mr. EDGAR. Mr. Speaker, yesterday lence" award for superior quality of mer plify the hx laws must address the issue of I had to leave the floor before the close chandise produced last year, dependabil tax preferences. To the extent that they are of business to keep a 5:30 appointment ity of supply, and initiative in developing eliminated, the tax base is increased, thus with Deputy Secretary of Defense John new and improved products. The award making it possible to lower tax rates while Duncan. I was meeting with Secretary is very special indeed. Less than one maintaining revenues. However, should the half of the product sources in the Sears aim of the tax laws just be to raise the funds Duncan to get his explanation of why family of over 12,000 receive such recog that Congress deems necessary to run the Boeing Vertol, a helicopter manufacturer nition. In addition, this is the 6th year government? How far should we go in elimi in my district, has lost a large contract that this company has received this nating tax preferences in the interest of sim for the NavY LAMPS helicopter to an plicity, fairness and lower taxes? Would it other bidder. This loss has dealt a de award. be politically feasible to get rid of many of It is with a great deal of personal the tax preferences that Americans have vastating blow to the economy of my pride that I bring this to the attention come to expect? congressional district. of Members of this astute body. In an One increasingly popular proposal in Con After I left the floor, two recorded era when quality and excellence has gress would make tax preferences subject to votes occurred prior to adjournment. been declining in the marketplace, it is periodic, mandatory review. Under such a The first was on Mr. Jacobs' amendment refreshing to see how this business con "sunset" proposal, tax preferences would be to the second budget resolution to delete automatically terminated after a certain all funds for the Republic of Korea un tinues to keep the high standards re number of years unless Congress decided quired by both their employees and that they should be continued. Undoubtedly less they extradite Tongsun Park to this management. Superior product quality, sunset laws would help to slow the rapid country. Had I been here, I would have high productivity, and dependable serv prollferaiton of preferences. Opponents voted "yea" on Mr. Jacobs' amendment. ice are the trade marks of a fine business argue, however, that they would cause too The second vote I missed was on the final enterprise. much uncertainty for businessmen and passage of the second budget resolution 28610 EXTENSIONS OF REMARKS September 9, 1977 for fiscal year 1978. Had I been present, specific action on saccharin, but also at the U.S. Court of Appeals Judge John Martin I would have voted "yea" on the resolu law which requires the banning of any food Sr., father of Tate's law partner. related item that is found to cause cancer in "He only stayed over there awhile, then I tion, House Concurrent Resolution 341. humans or animals. stole him away and we've been together ever since," John Martin Jr. said. "That was in 1947." As a community member, Tate has been MONEY CAUSES CANCER S. SHEPHERD TATE active. He is a former head of the Chickasaw Council of the Boy Scouts of America and had been active in scouting since 1929. He HON. LARRY McDONALD HON. HAROLD E. FORD joined Troop 20 at Idlewild Presbyterian OF GEORGIA Church when he was 12 OF TENNESSEE He also is a former president of the Ten IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES nessee Bar Association and active in his Friday, September 9, 1977 church, having served on the vestry of Grace Friday, September 9, 1977 St. Luke's Episcopal Church and as delegate Mr. McDONALD. Mr. Speaker, recent to national conventions of the Episcopal ly two reputable scientists confirmed Mr. FORD of Tennessee. Mr. Speaker, I rise today to call the attention of my Church, representing the Diocese of Tennes what many probably have believed for a see. long time. Too much of any substance distinguished colleagues in the House of One of his latest ventures was to take part put in the human body under certain Representatives to an outstanding con in a special ABA task force to recommend conditions will cause cancer. Using dimes stituent of the Eighth Congressional Dis guidelines on lawyer advertising. inserted in the stomachs of rats, these trict of Tennessee, Mr. S. Shepherd Tate. He was named to the task force after the two scientists were able to induce cancer Mr. Tate, a leading member of the Mem U.S. Supreme Court ruled 5-4 that lawyers phis bar, was elected president-elect of could not be prohibited from advertising in a great number of rats. Therefore, routine legal services. should we ban money? Probably yes the the American Bar Association at its re cent convention in Chicago. He is only He urged rank-and-file suggestions from FDA would say. We have really reached the 218,000 members of the ABA to help his the point of the ridiculous! The very in the third Memphian to be so. honored. panel tackle the advertising question. teresting commentary on this matter I am pleased to have been consulted by "Lawyer advertising has not had the best from a Richmond Times-Dispatch edi Mr. Tate on several issues since I have connotation," he said. "It connotes puffery torial of August 5, 1977, follows for the been in Congress, and I particularly look and self-laudatory statements." edification of my colleagues who have forward to his continued input into the BOAT AND TENNIS BUFF joined or are thinking of joining on leg legislative process in his new position of But Tate, a man of carefully measured islation to modify the Delaney amend leadership. At this point I would like to words and considered thought, would not ment, such as H.R. 5508: share with the Members of the House venture to guess what the task force recom an article from the Memphis Press MONEY CAUSES CANCER? mendations would be. He emphasized that Scimitar about Mr. Tate: ABA advertising codes are only guidelines for Two scientists at the Denver General Hos A MAN WHO GETS THINGS DONE individual state bar groups or supreme courts pital inserted sterilized dimes into the to consider. abdominal walls of 35 rats, and indications (By Charles Thornton) "It's up to each state to set rules," he said. are that more than half the rats will get S. Shepherd Tate, the third Memphian Despite his heavy involvement in corporate cancer. Federal health and safety officials since the 19308 to head the prestigious Amer law, family matters and the community, Tate should immediately ban all coins from cir ican Bar Association, is considered by his still finds the time to do more boat main culation, declare the scientists. associates to be a quiet man who learned to tenance than boating and he takes more "Indeed," write Dr. George E. Moore and keep his mouth shut as an intelllgence officer than an occasional whack at a tennis ball Dr. (Ph. D.) William N. Palmer in a letter in during World War II. "I guess he got his love of boats from the the current issue of JAMA, the journal of Tate, 59, associated with the Memphis law Navy," said one acquaintance. "He's on his the American Medical Association, "there is firm of Martin Tate Morrow & Marston, fol third boat and I think he enjoys keeping it an excellent probability that folded paper lows the footsteps of Memphians Walter in fine trim more than running it. The only money, government paychecks, b1lls and Armstrong Sr. and Edward Kuhn as presi other hobby he has that I know of is play credit cards wm provoke sarcomas [malig dents of the American Bar Association. ing tennis." nant tumors of the connective tissues) and "He has a distinguished war record," said Decorating his office walls apparently isn't they should be banned immediately." John Martin Jr., one of Tate's law partners. a hobby. The purpose of the experiment, according "During World War II, he was a Navy in to Dr. Palmer, with whom we talked yester "The only decoration he has on the wall telllgence officer and he won this enormous is a picture of his grandfather for whom he day, was to demonstrate the asininity of the citation from the Chinese Nationalist gov federal law which requires the banning of was named-stonewall Shepherd," sald an ernment, but I don't know what it was for acquaintance. any food, food additive or food container because it's written in Chinese," Martin that is found to cause cancers in rats. said. It seems that the late Mr. Shepherd was The dimes were inserted into the 35 rats Exactly what Tate did to earn the citation an admirer of Stonewall Jackson, the Con on March 28, 1976, and in only 14 months, is still pretty much a secret. federate general. And his parents, thinking nine rats had sarcomas and nine had abdom "Those mtelllgence boys were taught to it would be a fine thing for a man to go inal masses. The experimenters estimate that keep their mouths shut and about all I know through life with a name of his own choos malignancies will develop in more than half about it is that he served in the field," Mar ing, permitted him to name himself. He chose of the 35 rats. tin said. Stonewall-a name that was passed on to Not being scientists, we are unable to as Fellow attorneys see Tate's elevation to Stonewall Shepherd Tate. sess the significance of the rat-dime experi president-elect of the ABA as an honor for ment, but Dr. Palmer points out that his the Memphis legal profession and the city. colleague, Dr. Moore, can be considered an "We are lucky to have a man like Shep," NATIONAL WOMEN'S CONFERENCE authority on cancer, since he was for 17 said one attorney. "He is absolutely con years director of the Rosewell Park Me scientious. When he served as president of morial Hospital, a cancer research institu the Memphis and Shelby County Bar Asso HON. AL ULLMAN tion, in Buffalo, N.Y. ciation, he made sure every detail was fol OF OREGON So it is of more than passing interest lowed and any committee he ever chaired got when Dr. Moore joins Dr. Palmer in charging its job done." IN THE HOUSE OF REPRESENTATIVES that in proposing to ban saccharin, "the de cision-makers in the Food and Drug Admin WAS A TOP SCHOLAR Friday, September 9, 1977 istration have done it again: protected the Other attorneys point to Tate's academic rat, reduced the credib111ty of cancer sci ab111ties and remark that his education Mr. ULLMAN. Mr. Speaker, I am entists, and kept their string of inane pro didn't stop when he finished law school. pleased to insert in the RECORD a message nouncements on cancer dangers intact." "He is a graduate of Southwestern at Mem from our esteemed former colleague, Food and Drug Administration officials phis and went to law school at the Univer Congresswoman Martha Griffiths of may be able to refute the argument made sity of Virginia," said another. "He is a Phi by Drs. Moore and Palmer. Even though peo Beta Kappa and a member of Omicron Delta Michigan. I served on the Ways and ple don't make a habit of swallowing dimes, Kappa." Means Committee with Mrs. Griffiths for the view expressed by these researchers fur After completing law school and ·serving many years and am very conscious of the ther emphasizes the importance of Congress' in the Navy, Tate returned to Memphis to outstanding contributions she has made taking a close look not only at the FDA's serve as a law clerk in the office of the 1ate in many areas of public policy. September 9, 1977 EXTENSIONS OF REMARKS 28611 As sole author of the Equal Rights of issues, all growing out of the lives of represent "women of every station in life" Amendment, Mrs. Griffiths has played women. Much attention was given to the role Stated in the 1913 CONGRESSIONAL RECORD of women as wife, mother, homemaker, and that to add "the distracting forces of pollti~al an important role in the restructuring worker in modern American society. Resolu campaigns" to their many other duties would of our laws to guarantee American wom tions related to program issues will be con surely wreck their constitutions and destroy en equality of opportunity, and she con sidered at the national meeting. their homes. The fears aroused by the immi tinues to be a tireless and effective work The important achievements of the State nent threa-t of women voting have not been er for this cause. meetings were accomplished in spite of some realized. Mrs. Griffiths outlines some of the diffi.culties. One source of tension was the ob THE NATIONAL CONFERENCE IN HOUSTON problems that have attended the series vious success of these meetings in respond One thousand four hundred and forty ing to the felt needs of women: attendance two delegates, elected at State meetings, of meetings held in the States and terri \Va5 very high. For example, the New York will consider the conference agenda together tories as part of the mission of the Na State meeting, planned for about 3,000 par and will determine the resolutions to be in tional Commission on the Observance of ticipants, drew over 10,000 people in Albany. cluded in the final report. Challenges to the International Women's Year, as well as Such high levels of interest created admini~:~ election of some of these State delegations some of their accomplishments, and gives trative problems for the planners which were have been adjudged by the Commission's a statement of the facts concerning the sometimes little understood by the partic legal counsel to be without adequate foun National Women's Conference to be held ipants. Some women had little experience in dation. In addition, 400 delegates-at-large November 18-21 in Houston, Tex. such large gatherings, a factor which compli will be selected by the Commission in an cated orderly procedures. Attendance figures effort to recgonize the special contributions The article follows: for the State meetings are attached. some women have made to American life STATEMENT BY FORMER CONGRESSWOMAN In some States, there were clearly some and to balance the total delegation to re MARTHA GRIFFITHS CONCERNING NATIONAL participants who did not intend to discuss flect the requirements in Public Law 94- COMMISSION ON THE OBSERVANCE OF INTER· agenda issues but aimed to disrupt the pro 167 that specisocialism. While those advocating fear of alienating world opinion • • • Am women's meeting previously. (2) Workshops votes for women were frequently depicted as bassador Sol Linowitz, one of the treaty nego were concerned with a comprehensive range "radioals", a group of women claim1ng to tiators, has even stated that the new treaty 28612 EXTENSIONS OF REMARKS September 9, 1977 will "prove" us magnanimous to a skeptical The potential does exist !or small urban uneasiness, of guilt at maintaining what is (third) world. Yet if this world is not con terrorist squads, recruited !rom Panama's so glibly described as a "colonial enclave." vinced of U.S. benevolence after our re-build large student population, to make lightening Our presence simply can't be squared with ing of post-war Europe and our billions of raids into the zone. They might stage rob the radical anticolonial (to wit, antiwestern) foreign aid dollars to scores of underdevel beries, kidnappings and assaults on pollee sentiment that is now the common intellect oped countries, one more act of charity will or civilian functiona.ries in the zone as well ual coin of the globe. not convince it. This treaty might just as well as in Panama itself. u.s. mmtary and police Yet it must be pointed out that Panama reinforce the notion that America is acting, units would find it tempting to chase these has benefitted mightily from a resource that not from generosity, but from weakness. raiders back into Panamanian territory, thus it alone could not exploit. It is a fact of life provoking nationalist outcries. that the canalis a major international water Paying Panama for the privilege of Yet a truly serious insurgency is unlikely. way that simply cannot be operated, much demonstrating our "magnanimousness", Panama is not Vietnam in size or resources, less defended, by one of the smallest coun and for the opportunity to relinquish a nor does it have a nearby neighbor willing tries in Christendom. That it would strike bit of our sovereignty further heightens to aid the "liberation struggle." Further many as arrogant to state these facts 1s a the absurdity of the treaty. more, the Panamanian chief, General Omar mark of the extent to which we have absorbed Torrijos Herrera, is unlikely to provide the the doctrine of international egalitarianism. I would like to insert the full text of training and logistical support necessary to National duty is not easily transferred nor the Journal article by Dr. Roger Fon transform urban terror squads into full fundamental geopolitical facts altered by taine, director of Latin American Studies fledged rural insurgents. Declaring war, even political bombast. at Georgetown University's Center for sub rosa war, on a superpower is still a dicey The United States must retain the major Strategic and International Studies: business. role in running and defending the canal. Moreover, Gen. Torrijos may well find it It is stlll open to question how precisely to SCARE TALK AND THE CANAL more in his interest to stamp out, than to (By Roger W. Fontaine) define that role, as well as the nature and encourage insurgents. The regime remains extent of Panama's contribution. What Negotiators for the Carter administration extraordinarily dependent on foreign invest should not be open to debate is the right of have reached an "agreement in principle" ment, foreign banks and, yes, foreign tour this country and the other users to an open with Panama on the "basic elements" of a ists-none of whom would enjoy working and and secure passageway between the planet's new treaty on the Panama Canal. playing in Belfast-style surroundings. two principal oceans. Although the exact language has not yet Finally, Gen. Torrijos is even less likely In spite of the attempts to secure ratifi been fully drafted, the main features call for to enlist outside material support, even from cation through scare arguments, this treaty transfer of the canal and the 533-square mile such friends as Fidel Castro and Muammar does not fit these requirements. Canal Zone to Panamanian control in 23 Khadafy. The risks are too great and these years. The m111tary presence of the U.S. would gentlemen have too many other preoccupa end by the year 2000, after which we would tions. The Cuban leader, moreover, knows continue to have the unilateral rigllt to in very well that Latin American guerillas have sure an open and neutral canal. This latter an extraordinary rate of failure. Their only TV VIOLENCE SPARKS IMITATIONS provision clearly implies the right to m111tary hope would be to wear down U.S. public intervention, although the Carter adminis opinion through a sustained campaign of tration does not like to use that term. A terror, not a wholly irrational hope, but HON. MORGAN F. MURPHY major controversy will undoubtedly flare up far from the worst-case scenario of the OF U..LINOIS over this point. treaty's supporters. IN THE HOUSE OF REPRESENTATIVES But what is interesting about the proposed The third major pro-treaty argument is treaty is not its novelty but its utter famil the fear of alienating world opinion, a Friday, September 9, 1977 iarity to those who have had the patience to fam111ar scenario which arises whenever Mr. MURPHY of Tilinois. Mr. Speaker, follow the negotiations over the last few there is a question of using force to insure years. The supporting arguments are also American interests. Ambassador Sol Lino study after study over the past decade famlllar, and they will now be echoed by wi tz, one of the treaty negotiators, has even has linked television violence to violent most of our foreign policy establishment, in stated that the new treaty will "prove" us acts by young people. This connection is cluding Gerald Ford and Henry Kissinger. magnanimous to a skeptical (third) world. understandable. According to A. C. Niel Yet these arguments are st1ll open to serious Yet if this world is not convinced of U.S. sen, the typical high school graduate has criticism, not, as our pro-treaty pamphleteers benevolence after our rebuilding of post-war spent some 15,000 hours watching tele would have it, the criticism o! the unin Europe and our billions of foreign aid dol vision. That is 4,000 hours more than he formed, the jingoistic and the merely nostal lars to scores of underdeveloped countries, gic. one more act of charity will not convince it. has spent in school. This 18-year-old Three scare arguments are especially prom This treaty might just as well reinforce the viewer has witnessed an estimated 18,000 inent, and need especially to be reviewed. notion that America is acting, not from gen murders and innumerable beatings, First, that the canal 1s vulnera.ble to sabo erosity, but from weakness. shootings, robberies, and bombings. ta.ge. Second, that a full-blown guerr1lla war To criticize this argument is to question Small wonder, then, that as the dosage might break out in Panama. And last, that the notion that what others may think must of TV violence has increased over the in such an event the United States would control our policy. No serious man should past decade, so has violence in American be condemned by all of Latin America, if be concerned with critical opinion of Panama not by the entire Third World. emanating from Conakry or Kampala, or society. Since the 1960's, crime and vio The Carter administration, facing a sus much less Moscow. lence have been increasing nearly 14 picious Senate and public opinion, wm prob Yet Latin America is a. somewhat differ times faster than our population growth. ably rely on these arguments in its campaign ent case since, with the exception of Cuba, In fact, murder is the fastest growing for ratification. Suggesting that the u.s. is none of its countries are our sworn enemies. cause of death in the United States. being subjected to extortion by tiny Panama The depth of our ties with this region is Although most of the 2,300 studies and is accurate enough, but the truly important matched only by those with Western Europe. reports on TV violence point to its de part of the equation is that we Americans Yet even though no Latin American regime structive infiuence, the three major net are engaging in acts of self-extortion. We publicly supports the United States, the are frightening ourselves with disaster sce depth of pro-Panamanian feeling varies con works have paid little heed to warnings narios which although superficially plausible siderably from country to country. It is that TV can be a breeding ground for have never been thoroughly dissected. strongest in Venezuela, Colombia and possibly criminals. A recent study issued by the ~ OF SABOTAGE Mexico; it is weakest in the southern cone of House Subcommittee on Communications South America. For example, Braz111ans, concludes: First, the !ear of sabotage. Although the heavy users of the canal, have privately ex canal is and always has been vulnerable, pressed deep misgivings over Panamanian (The) continuing high level of vio wrecking it is obviously to no one's advan lence • • • suggests that the industry has control. been unable to come to grips with the prob tage, and least o! all to that o! the Pan ONLY FivE NATIONS amians. Since North American capital would lem--of TV violence-despite years of atten be required to restore operations, Panama Despite Gen. Torrijos's numerous meetings tion to it. would remain as dependent as ever on the with regional leaders, the last one held in United States. Furthermore, a treaty which Bogota early this month, he has managed Mr. Speaker, I would like to draw my delays full c.ontrol until the year 2000 seems to get the collective support of only five colleague's attention to an article I have unlikely to stay the hand of the young and other nations. written on this important subject. The impatient saboteur. Moreover, a surrender of the canal is not article appeared in the Daily Calumet on Second, guer1lla warfare. The specter of likely to gain us lasting respect or affection. August 30, 1977. another Vietnam is an effective weapon, no And why should it when the obvious way to doubt, in persuading a war-weary American deal with us is to make more demands in as TV VIOLENCE SPARKS IMITATIONS public to surrender its rights on the isthmus. unfriendly a fashion as possible? (By Representative Morgan F. Murphy) But the extent o! the problem remains to be Beyond these arguments, our reluctance On March 8, 1973, the CBS television net analyzed properly. to hang on to the canal reflects a sense of work broadcast a movie called "The Marcus- September 9, 1977 EXTENSIONS OF REMARKS 28613 Nelson· Murders," which depicted a brutal an active Interest in monitoring what their and should-be attained without: (1) alter rape and murder of a young woman. Three children watch. ing the basic structure or nature of the sys weeks later, a 17-year-old Atlanta boy con What can the concerned parent do about tem; (2) adding heavily to tax burdens iD fessed to the rape and murder of a young TV violence? One authority on TV violence, the future; or (3) requiring any tax in woman, saying that he had patterned his Eugene Methvin, suggests the following: creases over the next several years, in light kllllng after the CBS movie. Write your local TV station whenever a of an uncertain economy and current pay On Sept. 30, 1973, ABC aired a movie en specific program offeQ.ds you. Ask the sta roll levies on both employers and employees. titled "Fuzz." The film portrayed a band of tion's manager to put your letter and his Toward these ends we are presenting, for youths who, for the sake of cheap thrllls, reply In the "public inspection file," which the consideration of the Congress and the drenched some tramps with gasoline and set Is reviewed by the FCC when the station's American people, a comprehensive 15-polnt them ablaze. Two days later in Boston, six broadcasting license is up for renewal. Send social security proposal. It would place the young men forced 25-year-old Evelyn Wagner copies of your letter to your local PTA and system on a sound financial footing for at to pour gasol1ne over hersel! in an empty other public Interest groups, and to the least the next 75 years, it would solve the lot and then set her afire. She died four Senate and House Communications subcom immediate financial shortfall in the trust hours later. mittees. funds, it would strengthen the system's in On Sept. 10, 1974, NBC broadcast a movie · Write advertisers of shows that you feel surance character, and it would correct a called "Born Innocent." The movie showed are too violent. Tell them you disapprove number of inequities. It would do all this some female inmates in a juvenile detention of such shows. with no tax increase until 1982 and with less home sexually assault a girl in a shower. If you are strongly offended by a station's than a 1 Y-1 percent increase through the year Four days later, three San Francisco girls, programming, file a formal complaint with 2050. ages 10 to 15, made a similar attack on a the FCC. For information on how to demand a The proposal does not, it should be empha nine-year-old girl. hearing to oppose a station's license renewal, sized, offer the myth of something-for-noth These are just a few grisly examples of write to the Citizens Communication Cen ing. It is realistic. There are prices to pay for how television violence has stimulated young ter, 1914 Sunderland Place, NW., Washing the problems it solves. But we feel the prices persons to commit violent acts. They are not ton, D.C. 20036. are reasonable, especially in view of obvious isolated incidents. Study after study over the While the FCC does not have the author alternatives: (1) a drastic lowering of bene past decade has linked television violence ity to censor TV programs, it does have the fits, (2) a heavy increase in payroll taxes now to violent acts by young persons. power to review whether a TV station is and in the future, or (3) the 11lusory use of The connection between TV violence and operating In the public interest. Citizens general revenues, which would require sub antisocial behavior is understandable. Ac have a duty, therefore, to make sure that stantial borrowing by the Treasury, an even cording to A. C. Nielsen, the typical high local TV stations are living up to their com bigger public debt, and eventually higher school graduate has spent some 15,000 hours munity's expectations. taxes and more inflation for all. watching television. That is 4,000 hours more Our proposal, which includes a number of than he has spent in school. This 18-year-old "tradeoff's," should be considered as a unit. viewer has witnessed an estimated 18,000 Its parts-interdependent and not inter murders and innumerable beatings, shoot SOCIAL SECURITY changeable--have been blended carefully ings, robberies, and bombings. into a particular whole, and it should be Small wonder, then, that a recent study judged as such. commissioned by ABC showed that 22 of 100 HON. BARBER B. CONABLE, JR. As far as we know, this proposal stands juvenile offenders admitted copying their OF NEW YORK alone. If there is another-to solve the sys criminal techniques from television. In IN THE HOUSE OF REPRESENTATIVES tem's financial problems, to correct so many January, TV Guide reported that four out of of its inequities, and yet to cost the tax 10 inmates at Michigan's Marquette maxi Friday, September 9, 1977 payers so relatively little--it has remained mum security prison attempted crimes based well hidden from public view. on what they had seen on TV crime shows. Mr. CONABLE. Mr. Speaker, ~is morning the minority leader, JoHN Specifically, our proposal would: As the dosag~ of TV violence has increased· A. Meet the immedl&~te financial needs of over the past decade, ~;o has violence in RHODEs, and I unveiled a major Republi the Social Security Trust Funds by: American society. Since the 1960s, crime and can initiative dealing with the problem ( 1) Reallocating taxes collected, between violence have been increasing nearly 14 of social security. I think that the com the Old Age and Survivors Insurance Fund times faster than our population growth. In prehensive 15-point proposal deserves (OASI), and the Disab111ty Insurance (DI) fact, murder is the fastest growing cause of the most serious consideration by my Fund, which is expected to become exhausted death in the U.S. collegues and hope they would give it soon 1! preventive steps are not taken. Although most of the 2,300 studies and (2) Temporarily diverting three-fourths of reports on TV violence point to its destruc their full attention. For this reason, I a Medicare tax rate increase (0.2% per em tive influence, the three major networks ask unanimous consent that three di1fer ployee and employer) already scheduled to have paid Uttle heed to warnings that TV ent items be printed in the RECORD im take place next year, to the OASI and DI can be a breeding ground for criminals. mediately following my remarks. Trust Funds. This diversion, which would not According to a July report issued by the They are: <1) A summary statement damage the Medicare Fund, would continue House Subcommittee on Communications, describing the proposal; (2) an indepth only through 1981. while violence temporarily receded in 1975 background paper providing details of (3) Permitting any of the three major (the year of the "family hour"), it increased the initiative; and (3) a sta·tement pro Trust Funds (OASI, DI and Medicare) to bor in 1976 and has been steadily cllmbing ever row from another 1! necessary and with ap since. The subcommittee concluded: "This vided by Mr. RHODES and myself, sup propriate arrangements for repayment wlth continuing high level of violence suggests ported by Messrs. ARCHER, STEIGER, interest. This would be a permanent provi that the industry has been unable to come KETCHUM, and ScHULZE, all Of whom are sion, which should serve as a "fail safe" to grips with the problem (of TV violence) Republicans on the Social Security Sub device against the insolvency of any of the despite years of attention to it." committee: funds. Some major civic and religious organiza B. Put the system on a sound financial tions have mounted campaigns against TV STATEMENT ON A NEW REPUBLICAN INITIATIVE ON SoCIAL SECURITY BY CONGRESSMEN basts at least 75 years into the future by: violence. The 6.6 mlllion-member PTA has (1) Decoupllng the automatic benefit ad been holding regional forums to mobll1ze RHODES, CONABLE, ARCHER, STEIGER, KET CHUM, AND ScHULZE justment mechanism (to correct a flaw ln c'tizens against TV violence. Last February, the mechanism) and indexing workers' earn the American Medical Association which has We believe that the nation's social secu ings records to wage trends. These changes labeled television an "environmental haz rity system should be restored to financial follow generally the recommendations of both ard," asked 10 major corporations to revlew stab111ty on a long range basis. We owe this the Ford and Carter Administrations. Thls their sponsorship of excessively violent pro not only to the 100 m1111on Americans who proposal would, however, adjust the ultimate grams. support the system and the 34 mlllton who benefit level to account !or overexpansion The publlc is clearly disenchanted with already benefit from it, but to the next gen that has occurred since the automatic ad television violence. An Aug. Harris poll re eration as well. They deserve no less. justment flaw was enacted. A savings clause vealed that 71 percent of the American peo We also believe that a number of long would be included guaranteeing that no ple feel that there is "too much violence" standing inequities in the system, especially future retirees would receive lower benefits on TV, and 71 percent disapprove of the kind those related to the treatment of women, than they would have received under the of violence shown. should be coiTected. present-law benefit formula as lt was at the Of course, parents cannot pin all the blame we further believe that the system should time of the change. (Decoupling and wage for TV violence on the networks. A Feb. be adjusted to changing American life styles, indexing would reduce the system's long Gallup poll revealed that 46 per cent of the that beneficiaries no longer should be pe range deficit by slightly more than half.) parents surveyed did not put any restrictions nalized for continuing to lead productive (2) Advancing gradually and slowly-from on the types of programs their children lives, and that we should move closer toward 65 to 68-the age at which full retirement watch. If parents are serious about reducing truly universal social security coverage. benefits would be payable. The adjustment present levels of TV violence, they must take · And we believe these desirable goals can:- would not begin until 19·90 and would not 28614 EXTENSIONS OF REMARKS September 9, 19'77 reach maturity until 2001. Each year during a.ble to a. worker reaching age 62. Under 11. Temporarily reassigns (through 1981) that span the full benefit retirement age present law, some younger beneficiaries re 3A of the Medicare tax increase, already would be advanced by one quarter year. ceive benefits substantially higher tha.n scheduled next year, to OASDI Trust Funds. Workers could continue to retire as early as those awarded older beneficiaries who have 12. Permanently reassigns (after 1981) ¥.4 · age 62 but with slightly greater actuarial worked longer under the system. This provi of the 1978 Medicare increase to OASDI reductions than at present. Gradual and dis sion would remove that disparity. Funds. tant implementation of this change, which This proposal is not being offered as a. 13. Reallocates ta.xes between OASI and DI is in keeping both with efforts to abolish "trial ba.lloon" or in a. partisan spirit. Trust Funds. mandatory retirement policies and with in It is being presented, in light of alterna 14. Permits any one of the Trust Funds creased longevity and productivity of Ameri tives a.lready proposed, to reassure the mil (OASI, DI & Medicare) to borrow from an can workers, is designed to permit orderly lions of Americans who are concerned about other to prevent exhaustion. retirement planning. (This provision would social security that the system not only can 15. Limits survivorship and disabillty further reduce the system's deficit, by about be made financially secure, but can be made benefit amounts to the maximum payable to 20%.) more equitable for generations to come. And a retiree under the system. (3) Permanently reassigning one-fourth of this can be a.ccompllshed without imposing This proposal has five general objectives. the Medicare tax rate increase, scheduled unacceptable tax burdens or dipping into First, it would put the social security sys next year, to the OASDI Trust Funds. This the deceptive pool of general revenues. tem on a sound financial footing for at least amount approximately equals additional We hope and trust it will be given serious the next 75 years. money which would enter the Medicare Fund consideration by our Democratic colleagues Second, it would strengthen the insurance because of other provisions of this proposal. in the Congress as well as by the Adminis character of the system. (4) Increasing ta.x rates for employees, em tra.tion. We a.re sending copies of the pro Third, it would improve the treatment of ployers and the self-employed in three stages; posa.l to the President and the Secretary of women under the system. 0.5 percent in 1982, 0.3 percent in 1990, and Health, Education, and Welfare, and a.re Fourth, it would make long-needed a.d 0.4 percent in 2000. This means that tax confident they will give it their attention justments in the program to reflect changes rates would rise, under this proposal, less promptly. in the living and working pa.tterns of the than 1-a.nd-%-percent over a. 75-year span. The Subcommittee on SOcial Security of American people. (The Medicare tax reassignment and the the Committee on Wa.ys a.nd Means is sched Fifth, it would move closer to universal three-stage rate increase would reduce the uled to begin, on Monday morning, the de coverage, which is appropriate for a nation remaining deficit to less than 0.5% of tax velopment of legisla.tion dealing with the wide, mandatory social insurance system. a.ble payroll~n actuarily sound margin. system's financia.l problems. We a.re particu The most important objective of the pro C. Make four significant improvements in larly interested in having our proposal con posal is, of course, restoration of the finan the treatment of women under Socla.l Secu sidered in that forum, and stand ready to cial soundness of the system, which faces rity, by: present it there. an estimated deficit of 8.2 percent of ta.x ( 1) Providing a. new benefit-a "working Of all interested parties, we ask only that able payroll over the next 75 year. This pro spouse's benefit"--designed to give adequa.te the proposal be given fa.ir-minded consid posal would virtually eliminate the long recognition to wives who work outside the eration, not in fragmented form, but in its term deficit. It aso would solve the serious home. The benefit would be equal to (a) the entirety. cash-flow problems facing the Social Secu higher benefit amount due either as a. worker The proposal is desert bed in greater detail rity trust funds now and in the near future. or the spouse of a. worker, PLUS (b) 25 per in a. separate document entitled, A Proposal One of the two major trust funds--the one cent of the smaller of those two benefits. for Financial Restoration and Equity providing for payment of disabillty benefits- (2) Reducing from 20 years to five years Strengthening of the SOcial Security Sys is estimated to become exhausted in early the dura.tion-of-ma.rriage requirement for tem. our staff members and consultants will 1979 (or possibly late in 1978). This proposal one spouse to receive a. benefit based on the be pleased to discuss it in greater detail at would avoid tha.t contingency, without re other's earnings record. This pro.vision is your convenience. quiring any increase in taxes over those designed to remove what many divorcees scheduled in present law, on either employers ha.ve come to view as an unfair and arbitrary PROPOSAL I'OR FINANCIAL RESTORATION AND or employees, until 1982. requirement. EQUITY STRENGTHENING OF THE SoCIAL PROPOSAL ANALYSIS (3) Ending the cutoff or reduction of bene SECURITY SYSTEM fits for beneficiaries who remarry. This pro The proposal ha.s 15 distinct elements. vision is included largely because many GENERAL OBJECTIVES Three elements deal with the short-term widows who rewed before reaching age 60, I. Restoring the Social Security system to trust fund problem-by reallocating monies a.nd divorced wives who remarry at any age, fina.ncial soundness, now and for a.t least the among the funds and by permitting one fund lose entitlement to their benefits under cur next 75 years. to borrow from another. rent law. II. COrrecting long-standing inequities in Three more deal with the long-range fi (4) Amending the SOcial Security Act to the treatment of women under Social Secu nancial deficit of the system, through de remove all remaining sexually discriminatory rity. coupling-and-earnings-indexing (to correct a language. III. Strengthening the insura.nce charac fiaw in current la.w and to stab1lize future D. Move the nation's social insurance sys teristics of the system. benefit ratios) and through modest tax ad tem closer to the ideal of universal coverage IV. Moving the system closer to the ideal justments and increases between 1982 and by providing for the pa.rticipation of all of universal coverage. 2000. federal government employees, including V. Adjusting the system to changes in life Four deal with sex discrimination and the and-work-styles of the American people. treatment of women through: (1) liberaliz Members of Congress not otherwise covered, ing substantially the benefit legibillty of di by 1979. The objective is integration of the SPECIFIC PROVISIONS Civil Service Retirement a.nd SOcial Security vorced spouses; (2) providing a new "work 1. Removes the earnings limitation on ben ing spouse's benefit", primarily to give greater systems without reducing benefits or protec eficiaries in 3 stages by 1980. recognition to wives who work; (3) eliminat tion for, or increasing c:ontributions from, 2. Advances the age of eligibUity for full ing the reduction or cutoff of benefits to participantr in either program. retirement benefits, slowly a.nd gradually, widows or widowers who remarry; and (4) E. Remove the earnings limitation im from 65 to 68, between 1990 and 2001. removing all remaining sexually discrimina posed on beneficia.ries. Under present law, 3. Brings all Federal government employees tory language from the Social Security Act. benefits are reduced and eventually elimi under social security coverage by 1979. One element would bring the system closer nated for earnings above $3,000 per year. 4. Provides a new "working spouse's bene to the ideal of universa.l coverage, by re (The limitation is adjusted a.nnually.) This fit," primarily to aid wives who work in cov quiring the participation of a.ll Federal em proposal would boost the limit to $5,000 in ered employment. ployees by 1979. 1978, to $7.500 in 1979, a.nd remove it en 5. Reduces from 20 years to five the dura Another element responds to a major tirely in 1980. tion-of-marriage req.uirement for divorcees change in our society-the increasing lon F. Freeze the minimum prima.ry benefit a.t to receive a spouse's benefit. gevity and productivity of American work its current level of $114.30 per month, but 6. Ends the requirement that some bene ers--by advancing slowly a.nd gradually, in increase the specia.l minimum benefit from ficia.ries, notably widows, lose benefits upon the future, the retirement age for full So a. ma.ximum of $180 to $219, and make it remarriage. cial Security benefits. This would not prevent subject (as a.re other benefits) to automa.tic 7. Eliminates all remaining sex discrimina workers from retiring at age 62 with actu annua.l adjustments in the future. The mini tion language from the Socia.l Security Act. arially-reduced benefits. It would move, even mum prima.ry benefit goes, in large numbers, 8. Requires no tax increase until 1982, then tually to 68, the age at which full retirement to governmental employees who either a a-stage rate advance totaling less than benefits are payable. "moonlight" or retire early and work just 1 ¥.4 % over the next 75 years. The three final elements are designed to long enough under Social Security to meet 9. "Decouples" and wage indexes to cor improve equity and strengthen the insur minimal ellgib111ty requirements. The special rect a flaw in automatic benefit adjustment ance cha.racter of the system by: minimum applies only to those who have provision and to stabilize benefit ratios. (1) Eliminating one of the most unpopu worked many years at relatively low wages 10. Freezes the minimum prima.ry benefit, lar provisions of the Social Security Act- under the system. but increases the special minimum benefit the one that imposes a limit on the ea.rned G. Limit disab111ty and survivorship ben (for those with many years• work at low income of beneficia.ries; efits to the maximum primary benefit pay- wages). (2) Freezing the minimum primary bene- September 9, 1977 EXTENSIONS OF REMARKS 28615 fit but also increasing the special minimum should take place, and as to whether the for years to come. This means there will be benefit for those who have worked under earnings record should be indexed to prices fewer workers making contributions, but the system for many years at low wages and rather than wage trends. Both the Carter and more retirees receiving benefits. In view of (3) Providing that benefits for the disabled Ford Administrations proposed decoupling such projections, because of the improve and survivors may not exceed the maximum at current benefit levels and indexing of the ment in mortality as wen . as the physical benefit payable to a retiree. earnings record according to wages. conditions of older people, and in light of I. SHORT-TERM FINANCING This proposal follows the wage-indexing wide-spread dissatisfaction with mandatory approach, on the main ground that, for fu retirement, the proposal above can have ·a The financial problems facing the system generally salutary impact both on the Social between now and 19'82 would be taken care ture retirees, it more equitably stabilizes the of through: (1) reallocation of Social Secu wage replacement ratio; that is, the relation Security system and on the social and eco rity taxes between the Old-Age and Survivors ship between the benefits they receive and nomic lives of the American people. the most recent covered earnings on which It is important to note that workers could Insurance ( OASI) and Disability Insurance those benefits are based. The proposal would, continue to retire at earlier ages--62, for (DI) Trust Funds; and (2) a temporary re however, adjust the ultimate benefit level example-but with slightly greater actuarial assignment of an increase in the tax rates for the overexpansion that has occurred since reductions than at present, to take into for the Hospital Insurance (HI) Trust Fund, the automatic-benefit-increase provision was account the longer period of time over which which already (under existing law) is sched the beneficiaries could be expected receive uled to take place next year. enacted. to It .1s payments. The current OASDI tax rate of 9.9 percent is an accepted fact that decoupling (on employers and employees combined) made necessary because of a "mistake" in Under the proposal, the standard retire the 1972 amendments to the Sociay Security ment age of 65 would be increased by three now is allocated: 1.15 percent for DI and Act. The "mistake" has led to overexpansion months (or one-quarter year) each year 8.75 percent for OASI. It should be reallo of benefit levels since that time, and would starting in 1990. By the year 2001, the mint cated: 1.5 percent for DI and 8.4 percent for lead to increasingly exaggerated overexpan mum retirement age for full benefits would OASI. The increased allocation of 0.35 per sion in the future. It seems logical to have have been increased gradually to 68. cent to the DI Trust Fund should be suffi the ultimate benefit level adjusted for the A gradual implementation of this change, cient to prevent it from becoming exhausted overexpansion which has taken place since with a starting date almost 15 years in the by 1979 (as can be expected without a the "mistake" was made. future, would give people sufficient time to change in the law). Reallocation also should Starting just before the "mistake" was plan for their retirement without severe dis cause both Funds to remain viable at least made, and continuing to the present time, ruption in any one year, and would permit until1981. the cost-of-living has risen 53.0 percent, management and labor to revise employment In order to assure further the viability of while Social Security benefits have increased practices carefully and systematically. these two Trust Funds, and to cover the cost 62.1 percent. Thus, benefits have increased (3) As noted earlier (on page 5), the long of certain improvements in the system start about 6 percent more than the cost-of-living range deficit in the OASDI Trust Funds ing next year, part of the scheduled increase over that span of time (162.1 compared with would be reduced further by a permanent in the HI tax rate should be diverted tem 153.0 produces a difference of about 6 per reassignment, starting in 1982, of a small porarily to the OASDI Trust Funds. Present portion of the Hospital Insurance tax rate. law calls for an increase in the tax rate, cent). Accordingly, it is reasonable to de m couple at a 6 percent lower level ultimately. This redirected rate would equal 0.05 per starting in 1978, from 0.9 percent to 1.1 per cent for workers and employers. cent for each employee, ·employer, and self Thls does not mean that benefits would be reduced for those currently receiving bene Pmployed person. If three-fourths of this (4) To further strengthen the financing increase, or 0.15 percent per worker and em fits. They would be tr·eated exactly as under of the system in future years, contribution ployer, were directed to the OASDI Trust existing law. Whenever the cost-of-living (as (tax) rates for employees, employers, and Funds beginning January 1, 1978 and end measured by the Consumer Price Index) the self-employed would be increased by 0.5 ing December 31, 1981, this would not only advances in a year by 3 percent or more, percent in 1982, 0.3 percent in 1990, and 0.4 bolster those two Funds, but also would per benefits would continue to be increased com percent in 2000. Thus, the net addition to mit a three year phase-out of the earnings mensurately. the presently scheduled OASDI tax rates limitation starting January 1, 1978. Nor does it mean that dollar amounts of over the next 75 years would be less· than (In addition, one-fourth of the 1978 in benefits paid in the future would be lower 1 ~ percent on employees, employers, and crease in the HI tax rate (i.e., 0.05 percent than present levels. To the contrary, dollar the self-employed. for both workers and employers) would be amounts-as well as the purchasing power III. TAX TREATMENT OF WOMEN AND SEX permanently directed to the OASDI Trust of benefits-for future retirees would be DISCRil\IIINATION Funds after 1981. This would not adversely higher than present levels. A major difference between this proposal The proposal would make four significant affect the operation of the HI Trust Fund, changes in the Social Security Act designed because the amount of money involved in the and the present system is that wage replace ment ratios (the relationships between bene to improve the treatment of women and to diversion approximately equals the savings remove remaining sex discrimination lan to this fund as a result of extending cover fits and recent covered earnings on which those benefits were based) would remadn guage. age to federal employees.] First, the proposal would reduce from 20 To guarantee the financial viability of all stable in the future. It is important to note that, under this years to 5 years the duration-of-marriage three Trust Funds over the next several years, requirement for one spouse to receive a ben each should be permitted to borrow from proposal, a savings clause--or guarantee would be provided so that no future retiree efit based on the other's earnings record. another, solely for the purpose of preventing Under present law, a divorced spouse retains exhaustion and with appropriate arrange would receive less than he or she would under the present-law formula as it was at auxillary benefit rights only if the divorce ments made in each case for repayment with occurs a.fter 20 full years of marriage. Critics interest. the time of the change. In other words, re tirees. in the future would have their choice. of the system long have contended that this II. LONG-RANGE FINANCING They could take the benefit available under requirement was unfair, arbitrary, and un (1) The long-term deficit of the system present law at the point of changeover, or realistic in view of societal changes. would be reduced by slightly more than 50 they could take the benefit provided under Second, the proposal would provide a new percent through a process called "decou the new method, whichever is larger. benefit--a "working spouse's benefit". Under pling," plus wage indexing of the earnings (2) The long-range defioit would be re present law a covered worker is always ell record of the insured worker. duced further (by about 20 percent) through gible for a benefit based on his or her own Decoupling was made necessary by what a slow and gradual advancement in the re earnings record. But if the worker also be has been termed an inadvertent fiaw in the tirement age at which full benefits are pay comes entitled to an auxiliary benefit, such 1972 law which adjusts benefits automatical able. This proposal would move that age as a spouse's benefit, he or she is entitled, ly according to annual increases in the Con from 65 to 68, by degrees, starting in 1990 in essence, only to the higher of the two sumer Price Index. Under the present cou and ending in 2001. benefits available. A number of working pled system, the CPI increases are applied When the Soclal Security system was en spouses (especially wives) have found that both to payments already being paid to those acted, 42 years ago, American workers were they would have been as well off financially, on the benefit rolls and to . the benefit for not living as long as they are now, nor were as far as Social Security benefits were con mula which is applicable to future benefi they as productive for as long a period of cerned, if they had never left the home to ciaries. Decoupling would apply the cost-of time. From time to time, the system has re enter the labor force. To alleviate this prob living percentage increases only to current sponded to other changes in the working and lem and to provide greater recognition of the beneficiaries. living habits of the people it serves, and employment record of a working spouse, the Decoupling would be accompanied by in it is reasonable for the system to adjust to proposal would make the following changes: dexing of a worker's covered earnings record. these trends also. 1. A spouse who is eligible for an auxWa.ry Virtually all observers of the social security It should be borne in mind that the lon or survivor benefit, who also worked under system have agreed that decoupling plus in gevity of the Amerlcan people is expected to Social Security, could receive a new "work dexing should be accomplished to achieve continue increasing in the foreseeable ing spouse's benefit", which would be equal rational and reasonable benefit levels in the future. The birth rate, meanwhile, has de to (A) the larger amount due either as a future. There has been disagreement, how clined drastically and may well continue spouse or as a worker, plus (B) 25 percent ever, as to the level at which decoupling downward (or else remain at a low level) of the smaller of the two benefits (but 1n 2861.6 EXTENSIONS OF REMARKS September 9, 19'77
no event greater tha-n the maximum primary An integrated system would in no way persons or retirees with much longer earn benefit). prevent the continuance of the Civil Service ing records (and therefore with greater con 2. Any pension or benefit based on govern Retirement system as a supplement to Social tribution payments). This disparity in ben mental employment not covered under So Security. efit levels (which would be increased if no cial Security would be considered as a pri V. INSURANCE AND EQUITY STRENGTHENING changes are made) has long been considered mary benefit in determining the amount of To strengthen the insurance character of inequitable in a national social insurance the Social Security aux111ary or survivor bene the system and, at the same time, to provide program. The proposal would end that dis fit payable. (This change is designed to re greater equity, the proposal also would: parity. move what amounts to a "windfall" benefit 1. Eliminate the earnings limitation on PROPOSAL FOR FINANCIAL RESTORATION AND in some cases under present law. For example, beneficiaries. This is probably the most un EQUttY STRENGTHENING OF THE SOCIAL if a wife worked under Social Security for her popular provision of the Social Security Act. SECURttY SYSTEM entire career, she would be entitled to a pri More bills have been introduced to abolish Impact on long-term OASDI Trust Funds' mary benefit based on her own earnings rec the limitation than to make any other ord. If her husband had worked exclusively change in the system. During recent publlc Deficit under a state employee's retirement system, hearings before the Ways and Means Com (Loss or he would be entitled to a pension under that mittee's Subcommittee on Social Security, gain) as system and also might be entitled to an repeal of the limitation was the most \Vidaly percentage aux111ary (spouse's) benefit based on his ot taxable discussed item. Witnesses pointed out that Provision payroll wife's Social Security record. Inasmuch as the limitation enforces the under-utilization aux111ary and survivors benefits are based Decoupling and wage-indexing based of experienced older people and also encour on pre-automatic-benefit-adjust- more on social adequacy (or need) than on ages retirees to adopt artificial work a.nd pay ment flaw ______+4. 50 individual equity, the "windfall" situation practices. Under this proposal, the llmitation described above is not one which the Con would be phased out over a 3-year period, Freezing regular minimum benefit gress contemplated when it provided for sur by increasing the anual exempt amount of and updating special minimum vivors and aux111ary benefits in the first earnings to $5,000 for 1978 and to $7,500 for benefit ------+0.07 place.) 1979, and by removing it entirely for 1980 Increasing the retirement age ______+1. 65 3. The proposal would end the cutoff or and thereafter. Limiting disab11ity and survivor bene- reduction in benefits for widows or widowers 2. Freeze the minimum primary benefit at fits to maximum retiree benefits ____ +0.02 who remarry. Under the proposal, benefits its current level of $114.30 per month, but Covering Federal employees ______+O. 10 would not be terminated because of a bene at the same time increase, now and in the Cutting marriage duration require- ficiary's remarriage or marriage at any age. ment for divorcees' eligibility from future, the special minimum benefit. . 20 to 5 years ______-0. 01 Under present law, for example, a widow's Freezing the minimum primary benefit remarriage before age 60, or a surviving di- . follows a recommendation of the latest Ad Removing benefit cutoff or reduction vorced wife's remarriage at any age, w111 pre visory Council on Social Security, and is for marriage or remarriage ______-0. 05 vent entitlement to benefits uniess the subse designed to lessen, and eventually ellminate, Adding working spouse's benefit, quent marriage ends. A number of persons, certain "windfalls" accruing to persons who with offset for other government especially those living in retirement com work in covered employment for very short pension ------0.45 munities, have complained that current law periods of time and thus acquire rights to Ending the earnings limitation _____ -0.20 requires them to "live in sin" in order not the relatively large minimum, which has 3-stage tax increase and HI tax diver- to lose Social Security benefits.) been weighted in favor of low-income sion ------+2. 13 4. The proposal also would amend the So workers. cial Security Act to remove all remaining In practice, a substantial number of Fed Total Net Effect______7. 76 sexually discriminatory language. (Example: eral, state, and municipal government work Deficit under Present Law____ 8. 20 The terms "husband's benefit" and "wife's ers, outside the Social Security system, have Deficit under ProposaL ______-0.44 benefit" would be replaced by one term, either "moonlighted" or retired early from "spouse's benefit." their regular jobs and worked under Social NoTE: The system is considered to be within safe actuarial bounds (sufficiently IV. UNIVERSAL COVERAGE Security just long enough to obtain the minimum primary benefit. close to absolute balance) if the deficit 1i Universal coverage is a natural and desir no greater than 0.50% of taxable payroll. able goal of any nationwide, mandatory social Ironically, the minimum primary benefit insurance system. Although about nine of was not established to help those short term workers, but to assist other workers SHORT-TERM COST IMPACT OF PROPOSAL ON OASDI every 10 American workers now participate PROGRAM in the U.S. social security system, it is in who had labored long under the sys.tem, at creasingly difficult to justify to the "nine" low wages. Recognizing that the minimum (In billions) why the "one" is not covered. This is espe primary benefit was not serving its basic purpose, the Congress in 1972 added a "spe cially true in view of the impact of the So Contribu· Cost of cial Security payroll tax on the incomes of cial minimum benefit" to better take care tions from Transfer Increase chan(le in Net contributors. of the workers with many years of covered Federal o! HI in OASDI earnings cost service at relatively low wages. Year employees taxes taxes test effect Public discussion of universal coverage has In so doing, the Congress did not change taken place for many years. It has long ap the minimum primary benefit, which con peared that a large majority of Americans 1978.------$2.7 ------$0.4 +$2. 3 tinues to be of greatest value to those who 1979- --- $4. 0 3. 0 ------1.6 +5.4 favor it, but no action has been taken by the need it least. This proposal would correct 1980____ 4.2 3.2 ------7.0 +.4 Congress. Many difficulties-legal and admin that anomaly by freezing the minimum pri 1981.... 4. 5 3.4 ------7.1 +.8 istrative-have stood in the way. 1982- --- 4. 8 1.2 $11.9 7.3 +10.6 mary benefit while improving the special 1983- --- 5. 1 1. 2 12.5 7.4 +11.4 But the latest Advisory council on Social minimum benefit. 1984.--- 5. 4 1. 3 12.9 7.6 +12.0 Security stated that despite these difficul The special minimum is now $180 per ties, "it is of great importance from the month for workers with at least 30 years of standpoint of assuring good protection for coverage. When the $180 figure was adopted ESTIMATED OPERATIONS OF OASDI TRUST FUNDS UNDER all workers on an equitable basis that all in the 1973 Social Security Amendments PROPOSAL FOR FINANCIAL RESTORATION AND EQUITY jobs be compulsorily covered under social (effective for March 1974), it was not made STRENGTHENING OF SYSTEM security." The council urged the Congress to subject to the automatic adjustments for (In billions) move promptly toward that goal. changes in prices; if it had been, it would A major step in that diretcion .:would be now be $219. mandatory coverage for all Federal workers. Under this proposal, the special minimum Nt~.t in Funds at Total crease end of Integration of the Civil Service Retirement would be increased to $219 in January 1978 Calendar year income t in funds year and Social Security systems would be an and would be subject to automatic adjust extremely difficult task, crossing jurisdic ment thereafter (as are all other benefits). tional boundaries of major committees in 3. Provide that benefits for the disabled 1977------$82.1 $87.7 -$5.6 $35.5 both the House and Senate, and involving 1978.------93.5 97.7 -4.2 31.3 and survivors never could be based on a 1979.------107.6 111.3 -3.7 27.6 many complex technical problems. But in primary benefit in excess of the maximum 1980 .. ------117.6 126.5 -8.9 18.7 tegration could be achieved, in an equitable primary benefit for a worker reaching mini 1981.------125.8 136.5 -10.7 8.0 ·way, within one year. mal retirement age of 62 in the year of death 1982.------145.0 146.4 -1.4 6.6 1983.------154.6 156.4 -1.9 4. 7 Therefore, an important objective of this or disab111ty. 1984.------164.6 166.4 -1.8 2.9 proposal is the immediate enactment of leg At least partly because of the technical 1985.------175.3 175.8 -.5 · 2.4 islation requiring the various committees of flaw in the automatic-adjustment-of-bene 1986.------186.8 185.5 +1.3 3. 7 jurisdiction to work together over the next fits provision (discussed above), benefits to year and produce a workable-and equtta. young and middle-aged beneficiaries may be 1 I ncludine interest on invested assets. ble-plan for an integrated system, to be unduly large-in some cases considerably Note: After 1986, trust funds balance is estimated to increase come e1fective no later than January 1, 1979. larger than those awarded to older disabled tach year. September 9, 1977 EXTENSIONS OF REMARKS 28617 THE MINIMUM WAGE PROBLEM: A writing a new federal minimum-wage law; a ton Corp. of Milwaukee, Wis., the world's LABOR DAY PUZZLE minimum-wage bill is also on the fall sched largest manufacturer of small gasoline ule of the House of Representatives, and engines. In 1959, he joined this progres there will be action on it soon. It is virtually sive company as vice president and was HON. ROBERT E. BAUMAN certain to raise the minimum wage from its current $2.30 an hour to $2.65. elected to the board of directors in 1962. OF MARYLAND Unions and liberals say that's good but not Shiely was a graduate of the University IN THE HOUSE OF REPRESENTATIVES ' enough. Business groups and conservatives of Notre Dame and received a graduate Friday, September 9, 1977 say it's bad but could be worse. But everyone degree from Harvard Business School. (including the secretary of labor) agrees that While he had a successful and dis Mr. BAUMAN. Mr. Speaker, the unem it will eliminate some lower-level jobs-ex tinguished business career, I believe that ployment statistics released by the De actly the sort of jobs that unskilled teenagers the great services he performed in the partment of Labor last Monday indicate might fill, and thereby get a foothold on the community will be his outstanding re that the ranks of the jobless are again . employment ladder. It's clear enough why this happens. Let's membrance. His association with the increasing. Teenagers, and especially say Pop's Corner Garage, with its budget pre Wauwatosa Police and Fire Commission black Americans are finding it more dif oariously in balance, has hired Tom Teen at influenced his interest in the welfare of ficult than ever before to become gain the minimum wage, full time, to pump gas policemen and firemen. He was president fully employed. and go for coffee. Tom gets $18.40 for an of the Blue Coats Foundation, an orga The House is soon expected to con eight-hour day, $92 a week. (He lives at nization that cares for widows and or· sider the so-called Fair Labor Practices home, and even after withholding he can phans of police officers killed while on Amendments of 1977 which will increase save a little of that.) Now comes the increase in the minimum duty. He was director of the Better Busi the minimum wage, among other things. wage, to $2.65. That means. Pop w111 have to ness Bureau of Greater Milwaukee; the While the intent of its legislative cham pay Tom $21.20 a day-an increase of $2.80 a Metropolitan Milwaukee Association of pions is noble, the bill to increase the day, or $14 a week. That may not seem like Commerce; a trustee of Marquette Uni minimum wage will make it that much much to a congressman, who gets over $1,000 versity; a board member and chairman harder for many Americans to :find jobs. a week whether or not he sJ:wws up at work, of the lay committee of the Archdiocese Economic studies have shown that in but Pop can't afford it; he only hired Tom in of Milwaukee; and a member of the every ca.Se, the minimum wage law gives the first place because he liked him and ap Greater Milwaukee Committee. incentive to firms to hire only the skilled, preciated his desire to learn something about running a garage. So he tells Tom just to Vincent Shiely leaves such wonderful experienced employees. Firms become come in four days a week. Tom's pay, before memories with his friends and acquaint less willing to hire the young, the new deductions, drops to $84.80, thanks to the ances that I would like to insert an ar or unskilled workers or minorities. How higher minimum wage. ticle from the Milwaukee Sentinel re this problem has grown, has been de The same thing happens on a large scale at porting his demise and his achievements scribed in a most perceptive article by Amalgamated Monolith, Inc., except that in life. Mr. Peter Jay, one of the chief editorial bottom-level employees there are laid off en To his wife Mary and the family I columnists for the Baltimore Sun, in its tirely. The company buys more automated join with his many friends, associates equipment, pays the people who operate it September 7 issue. I include it in the higher wages, and keeps within its budget. and acquaintances in extending sincere RECORD for the benefit of everyone: And the distance between those who have condolences. A LABOR DAY PuZZLE work and those who don't grows greater. V. R. SHIELY DIES AT 56; BRIGGS & STRATI'ON This holiday just past has always seemed There is a lot of well-meaning talk about CHIEF to have more than its share of frustrating how the minimum wage oughtn't to be below Vincent R. Shiely, holder of the top three aspects. the poverty level. ($2.30 an hour is $4,787 a positions at the Briggs & Stratton Corp., Usually, it's hot. Usually the traffic is year.) The poverty le·vel is arbitrary, of died Monday at St. Joseph's Hospital of a heavy, the drivers 111-tempered, the highway course, but oall it half the median income, malignant brain tumor. air poisonous. It is not a long weekend from which is where a lot of reformers place it. Shiely, 56, chairman of the board, presi which travelers return rested and recreated. The median household income in the U.S. is dent and chief executive omcer of the firm, It has a perverse quality, hard to put one's about $12,500. That would make the poverty underwent an operation for the removal of finger on but quite certainly there, that level $6,250. That, in turn, works out to al the tumor May 20. makes it seem something less than satisfac most exactly $3 an hour, which is what He was released from the hospital in June tory as holidays go. George Meany says the minimum wage but was hospitalized again last week. He This has something to do with the idea should be. would have been 57 Thursday. that it signals a return to work. We have This all forgets, though, that minimum come to equate Labor Day with the ringing wage employees are not, as a rule, heads of JOINED IN 1959 of the bell at the end of recess. It is the last famUies. And it forgets the impact on the Shiely, of 630 :H6ney creek Pkwy., wau chapter of summer, the end of the time of job-seeking teenager. A $~ minimum wage watosa, joined Briggs & Stratton as a vice the merry shiftless crickets. Ahead lies fall, may show compassion on the part of Con president in 1959. the season of the industrious and totalitarian gress and Mr. Meany for the working man, His career there was studded with pro ants. but it won't help Tom Teen down at Pop's. motions that saw him become a director in Labor Day begins a new year, in a sense. He'll just find himself working a 30-hour 1962, executive vice president in 1963, presi (A perfectly reasonable sense, one might add. week, if he's lucky, and out of work if he's dent in 1970, chief executive officer in 1972 The year might as well start in September not. and chairman of tAe board in July, 1976, as January. It already does for students, and, That, in any event, was what one laboring when the firm enifjioyed. as many as 9,000 with Rosh Hashana, for Jews. It starts in creature, the head of a household and holder persons in the Milwaukee"'area. February for the Chinese and on July 1 for of a union card, found himself puzzling over The firm is in the world's largest producer those who collect and spend our taxes. There during the Labor Day doldrums. Some things of single cylinder, air cooled, four cycle gaso isn't anything special about January 1.) don't add up, and the minimum wage con line engines and automotive locks. In But that is a digression. We were consider cept is one of them. speeches, Shiely said his firm rose to the top ing Labor Day and its frustrations, many because of its innovative product de~;;igns, of which are connected with work. It is a cost reductions and service departments: in time when we find ourselves thinking about 2,500 outlets worldwide. -. labor, whether or not we do any. DISTINGUISHED WISCONSINITE PASSES AWAY BANKED ON QUALrrY A job can be a nuisance or a bore if you Shiely, in a 1975 speech, criticized a. maga have one. It can be something much worse if zine article that said his firm was "hiding its you don't. DeWayne Wickham wrote mov light under a basket." He said he preferred ingly in The Sun the other day about the HON. CLEMENT J. ZABLOCKI OF WISCONSIN to let the quality of the firm's merchandise difficulties of teenagers, even honor gradu speak for itself. ates, in finding work of any kind. The prob IN THE HOUSE OF REPRESENTATIVES lem for black teenagers, as anyone knows who The company and Shiely were forecasting reads unemployment statistics, is especially Friday, September 9, 1977 a shortage of natural gas as early as 1973. acute. Mr. ZABLOCKI. Mr. Speaker, recent They complained that there might not be But what are we doing about it? Not much enough energy to support the firm's growth, that makes sense. And the odd thing is the ly a distinguished community leader in but their predictions also gave themselves extent to which there is agreement about my district, Vincent R. Shiely, passed enough time to provide for alternate fuel that--among Democrats and Republicans, away after an extended illness. At the sources. whites and blacks, liberals and conservatives. time of his death he was president and Shiely said he believed many firms soon Tomorrow, a Senate committee will start chairman of the board of Briggs & Strat- would rely more heavily on electricity as a 28618 EXTENSIONS OF REMARKS September 9, 1977 power source, warning that Wisconsin could ment. But, if the purpose of the sale is to cles that recently appeared in Washing face an electricity shortage by 1982. invest in another energy company which While the firm faced a. financial slump and ton area newspapers. The :first, aptly had major layoffs in 1975 due to a low de might have a better idea or better man titled "The Treaty Debate: Cutting mand for small engines, Shiely, who had al agement, then the capital gains tax is Through the Rhetoric," was written by ways had his eye on future energy needs, just a :fine on energy efficiency. Repeal our distinguished colleague from Illinois predicted that the slump would pass soon. that fine on reinvestment and literally boot Managers who want to prepare f~r a deci ing them out of the country. sion that appears llkely, if not inevitable, If the leader of Panama were the man who HON. PAUL FINDLEY face two allied questions: What would a change mean to my organization? What serves as its President, Demetrio Lakas, rather OF n.LINOIS than Torrijos the Caudillo, the situation steps should we be taking now? would very likely change substantially. Presi IN THE HOUSE OF REPRESENTATIVES SOME CONSEQUENCES dent Lakas was educated in Texas, speaks Friday, September 9, 1977 Although the retirement age may simply as idiomatically as Lyndon Johnson and al be moved back, a more llkely possib111ty ls most as colorfully, and brims over with pro Mr. FINDLEY. Mr. Speaker, it is al prohibition of age as a legal basis to retire Americanism and a deep distrust for Com ways heartening when members of the someone, fall to hire, or discriminate in munism. Ask not why therefore he associates business community of this Nation and leave, compensation, or promotions. himself with Torrijos. That 1s the way in those professionals who serve them take How, then, wlll it be possible to retire an Spanish politics, and the way, 1f less so, in a forward looking approach to ending employee? In the overwhelming majority of non-Spanish politics-not everybody asso mandatory retirement. A recent article in situations, it wlll be possible because he or ciated with Hitler was evil. the Harvard Business Review, by Uni she wants to retire. Where the organization's But here is a point that ought to be con versity of Houston Prof. Betsy D. Gelb, action is challenge.d, it will probably be sidered. The protests against American oc obliged to demonstrate that a worker, or all cupation of the Canal Zone antedated the advises businessmen on how to benefit workers of a certain age, can no longer per ascendancy of Torrijos. It is certainly true from legislation that would raise the age form their duties adequately. In the laws that Torrijos has continually identified him of mandatory retirement. The article now protecting workers between 40 and 65, self with the anti-Canal rioting. It is not true shows that with a little thought and ef discrimination 1s permitted only 1f age 1s a that he instigated that rioting (in 1964 he fort a better system can evolve when bona fide job qualification necessary to was an insignificant mllltary officer). Nor is it American employers no longer use the normal operation of the particular business. true that his own tyrannical habits and his lazy man's personnel policy of mandatory Most organizations will choose to make re own ideological predilections have anything retirement. tirement desirable. A generous and flexible to do with the feeling of the Panamanian pension plan sets a low "price" on giving up Text of the article follows : a salary. But price is only one consideration people toward the Canal Zone. If Panama WHEN COMPULSORY RETmEMENT AT 65 Is for the person in his or her 60S "buying" re were led by Pericles, the popular fever about ENDED tirement. Others are: the Canal Zone would be unchanged; and Sometime in the future, when Congress or The quality of the product-in other why not? the Supreme Court bans forced retirement at words, wm I enjoy retirement? Influencing Within a country, there are grounds for the age of 65, it should be no surprise. the answer to that question are tangibles being especially strict in discouraging civil Movements on two fronts have made the llke company sponsorship of retirement clubs disobedience. As between countries, particu overturn of this policy likely, if not inevi with stimulating activities and intangibles larly where there 1s a volatile tradition, it table. llke the status accorded retirees who return doesn't always go that way; and we are no The first front is legislative. Bills to outlaw for visits. exception. When we felt ourselves maltreated mandatory retirement have been introduced The desire to discover what it's like before by the British, we engaged in acts of sedition in Congress and in three state legislatures; plunging in. The Swedish government offers against the crown at least the equivalent of in all these bodies the measures have gained workers the opportunity of tapering off work the riots engaged in by the Panamanians. wide support. A former director of the Social gradually between the ages of 60 and 70. Security Adxninlstration, Robert M. Ball, has Business in the United States might well in American non-jingoists (and that ought to advocated three years' pos.tponement, by law, itiate this policy on its own. Many women embrace all American conservatives) are re of the age for receiving benefits; he and oth with young children want part-time school quired to ask themselves the question: How ers maintain that change is necessary be hour jobs. A possible procedure is to employ would we, 1f we were Panamanians, express cause pensions simply cost too much. Former one of them in the mornings and someone ourselves in the matter of the Canal? Treasury Secretary Wllllam E. Simon has approaching retirement in the same job after Now, Panamanian resentment of U.S. oc called for raising the retirement age to avoid noon. cupation of the Canal Zone is no more an bankruptcy of the Social Security system. When retirement is "marketed" in this argument for U.S. evacuation, than Cuban The second front is legal. One lawsuit to way the competition is the job-its status, resentment of occupation of Guantanamo 1s overturn an age-specific retirement policy salary, and the feeling of usefulness it pro an automatic argument for U.S. evacuation. won support from the American Medical As vides. When that combination of benefits What It is Is a single factor. But It is no less sociation, which stated in its "friend of the outweighs the benefits of retirement in the a factor because that indignation brought on court" brief that no evidence shows older worker's mind, that worker wlll retire only discussions between representatives of Pan workers to be less efficient than younger ones. 1f the organization can force him or her to ama and representatives of the United A 1974 Supreme Court d'ecision may be a do so. States: Yet it 1s this point that, above all basis for a court challenge of age-specific Such situations wlll require the orga others, Governor Ronald Reagan continues retirement plans. In ruling that the Cleve nization to demonstrate that this individual to stress. land school district could not force a teacher or a certain age group cannot perform the to take maternity leave in a particular duties of the job. When the required ca The United States presumption should al month of her pregnancy, the Court held that pablllties are unclear, management obviously ways be that we do not want to remain the pollcy amounted to "a conclusive pre must find out. where we are not wanted, but will do so 1! sumption of physical incompetency (which) Once the organization has established good consider.atlons of national security require applies even when the medical evidence as to measures of the capab111ties needed for its it. And considerations of national security the individual woman's physical status might v·arious jobs however, it should be able to not only do not require our presence in the be wholly to the contrary." retire some workers earlier. No longer must Panama Canal under the present arrange If a worker Is entitled to scrutiny of her it retain employees who have lost their pro ments, they argue against our presence in capab111ties before she is obliged to take ma ductivity and drive in their late 50s or early the Panama Canal under the present ar ternity leave, the retirement policy implica 60S, but who are kept on because today's rangements. tions are not hard to imagine. Arthur S. special pressures and union contracts make The reason for that, tirelessly put forward, Flemming, U.S. Commissioner on Aging, as it difficult to force them out. Is that the Canal is at the margin indefen serts that a forced retirement at a set age Moreover, management may discover that sible. But the chances of defending it against stands "in direct conflict with our Judeo in fact most of its workers in their 60s have Christian concept of the dignity and worth the necessary capab111ties and should stay. sabotage are greatly Increased with the coop of each human being." The result may be a significant saving In re eration of Panamanians. The chief justifications for obllgatory re cruiting and training costs and, if the aver We should, then, be as angry at the Pana tirement at a certain age are the terrible age worker continues to work until age 70 manians who assaulted the Zone in 1964 as difficulty of deciding whom to retain and or later, a decrease in contributions to the we are at our forefathers for harassing the whom to let go, and the need to make room pension fund. British in Boston 200 years ago. There Is no for younger employees. Yet it is by no means FIRST STEPS reason to deny others those urges we feel so unknown for companies to overcome these While contemplating the possible overturn strongly in ourselves. Ours must be the cool, arguments; few of the employees of U.S. of retire-at-65 policies, the organization may deciding voice. But it must not be 'governed Steel, for instance, are subject to compulsory consider measures that can be implemented by petulant considerations. retirement rules. Most of the employees may immediately. Those I am suggesting, it September 9, 1977 EXTENSIONS OF REMARKS 28621 should be noted, are useful even if present Following are the reasons I gave for Pascarella's plant. Another 2,400 employees policies are upheld. Suggested actions are: why the quotas should remain in effect: at two Allegheny Ludlum plants in Upstate Look at the retirement "product" offered New York also have been granted trade ad to workers in your organlz·ation and see how TESTIMONY OF REPRESENTATIVE justment assistance, and overall, between WILLIAM F. WALSH likely you would be to "buy" if you didn't November, 1975, and March, 1977, more than have to. Then improve it. Consider part Gentlemen, I am W1111am F. Walsh. I rep 23,000 specialty steelworkers were granted time jobs for retired workers. Discounts on resent the 33rd Congressional District of trade adjustment assistance. I think these company products a.re another possib111ty, New York in the United States Congress, and people have a right to protest. obviously more relevant for major household I am here today to testify in favor of the Why are the quotas being reconsidered appliances than for, say, shoelaces. retention of existing import quotas on spe af.ter being in effect for only one year? A If the organization has no retiree-rela cialty steels. May 24, 1977, Wall Street Journal article tions staff, you may want one. But its per I have a special interest in this issue. My reported: formance should be measured on dimensions district includes the Crucible Specialty "The presidential action on specialty steel that matter: how many prospective em Metals plant in Syracuse. This fac111ty has is a direct response to pressure from Western ployees mention that a retiree recommended been one of those hard-hit by the strong European governments. Early this year, they your company, or how many retirees support, import pressure that has plagued the na strongly protested the quotas, which appar not oppose, a company request for a zoning tion's specialty steel producers. On Janu ently were hurting the European steel indus variance. (Retirees have the time to go to ary 16, 1976, some 1,300 persons at this plant try more than anyone had anticipated." public hearings and to back the organiza were certified to receive trade adjustment Gentlemen, in every other country but our tion they worked for-or picket it.) assistance as a result of import pressure. own, steel is a direct in.s,trument of national Consider the merits of a gradual retire It is because of those workers that I am policy. They want to export their potential ment plan: easing the shock of retirement here today. And I think that it might be steel unemployment to the U.S.-at the ex and the chance it offers to obtain the "best best for me to let one of those workers speak pense of potential unemployment among four hours," perhaps, of a worker's day, about his personal concerns through me. American workers-so that our specialty whether the worker is 60 or 68. I have here a letter to me from Anthony steel companies are competing against for Develop a group that builds expertise on M. Pascarella, president of United Steelwork eign governments. the subject, including industrial engineers, ers Local 1277-the local whose members A closer look at the international trade en doctors, psychologists, supervisors, union work at the Syracuse plant. I quote: vironment in specialty steel shows we are representatives, and some recently retired "As a steelworker, and president of Local dealing with technically-oriented companies. workers. You may have to prove in court 1277 of the United Steelworkers of America, They produce complex and "exotic metal" what capab111ties are required for every job I am deeply concerned over the govern steel alloys which are made into key compo in your organization. Even if such a chal ment's consideration of loosening or remov nents used in the energy, chemical, auto lenge never comes, you wlll still benefit if ing present import restrlc.tions on foreign mobile and the aerospace industries. They capable employees can be retained beyond specialty steels. also have critical defense applications. 65. "As you know, the steelworkers and their American specialty steelmake.rs are the SOCIETAL CHANGES union fought long and hard in conjunction acknowledged technological leaders-in the Not only the organization, but the entire with industry leaders to get import restric development of new production processes as society in which retire-at-65 is no longer the tions imposed. I am sure you are well aware well as in the development of new products. rule wlll be radically changed. A few ex of the fact that when import restrictions This fact was acknowledged by foreign rep amples may indicate the range of effects: were imposed, steel importers filled their resentatives who testified at the first ITC People over 65 wm have more money, warehouses in anticipation of the govern hearings. whether they stay on the job or because pen ment's action. Therefore, the present re Our specialty steel industry also produces sion plans are "sweetened" to lure them into strictions have not been in effect long enough a profit domestically, but nearly every major retirement. They will become a more desir to determine their impact on the steel in foreign specialty steel producer in the world able market; the industries most likely to dustry or on our foreign competitors. lost money last year-and is continuing to benefit include travel and home-mainte "My concern, however, is not basically lose this year. British Steel Corporation, nance services like contract lawn fert111zing business or industry oriented, but lies pri owned by the government, is losing one and house painting. marily with the welfare of the people I rep mllllon dollars a day. The creation of a significantly higher pro resent-the steelworkers. To us, import re Our specialty steel producers must operate portion of part-time jobs as more employees strictions mean jobs and job security. The under laws which stimulate competition, but ease into retirement wm greatly spread com steel industry has not yet recovered from its foreign producers do not. The Swedish gov muting and other activities over a greater business slump, nor returned to employ ernment is currently promoting a program of part of the day. ment levels prevalent in 1974 and early 1975. "rationalization"-in order to reduce com Retirement communities w111 be forced to In fact, the entire industry is st111 in a state petition. The Japanese openly speak of car compete with the attractions of staying on of depression. It has been our hope that im tels-and implement them. All of these prac the job. Possibly many of them will choose to port quotas should be imposed long enough tices would be illegal under American law. join the trend, rather than fight it, and lo for concrete import agreements to be nego Despite the current world recession, for cate within commuting distance of major tiated with foreign countries. This, we feel, eign specialty steel capacity has been ex metropolitan areas. would eliminate unfair competition which, panding-and despite their lack of markets, Obviously, the design and funding of pen in turn, deprives us of employment. When foreign specialty producers have been hold sion plans will be not just a new ball game the steel industry suffers, so do the steel ing their production in certain products near but a sport with a new set of rules. What workers. Modifying or removing present 1m the record levels of 1973-74--when there was will the flexible · program of the future look port restrictions would cause us to suffer, a world-wide shortage of steel. like? It's impossible to say, but the last per and not only on a short-term basis, but one Gentlemen, in any area you choose, our son who should even consider retiring at 65 with long-term ramifications affecting all of specialty steel producers can hold their own these days is an actuary. us. against anybody in the world-given equal "We work hard to produce a highly tech terms of competition. But the terms of com nical product where quality is not only de petition are simply not equal. sirable, it is imperative. We take a great deal If we eliminate present specialty steel TESTIMONY BEFORE INTERNA of pride in our workmanship and our pro quotas, we will be subsidizing continued em TIONAL TRADE COMMISSION ON ductivity. We do not want our jobs given ployment abroad at the expense of greater SPECIALTY STEEL IMPORTS to the employees of our foreign competitors. unemployment among our own specialty "As our representative, and on behalf of steel workers. all the members of Local Union 1277, I am We will be hurting ourselves by making it HON. WILLIAM F. WALSH requesting you to take whatever action is impossible for a domestic industry to pro OF NEW YORK necessary, including direct contact with duce the specialty steels needed for many President Carter, to see to it that the jobs IN THE HOUSE OF REPRESENTATIVES vital industrial and defense applications of the American steelworkers are protected.'' products that foreigners wm not produce for Friday, September 9, 1977 This letter summarizes far more than I us because it is not profitable for them to Mr. WALSH. Mr. Speaker, I would like could the anxiety of these proud, talented do so. to share with my colleagues testimony I Americans whose very livelihood and future We w111 be destroying an invaluable re is threatened by what I feel could be a pre source-a labor pool of highly sk1lled, highly delivered this week before the Interna mature removal of protection needed to motivated workers who wm not be available tional Trade Commission during a hear allow their industry to recover from previous if and when we ever need them again. ing on whether the current import quo flooding of U.S. markets by imports. We must retain the current specialty steel tas on specialty steel should be main As I noted, trade adjustment assistance quotas for their full three·year term. tained for 2 more years or not. has been granted to 1,300 persons at Mr. We must give our producers a chance to 28622 EXTENSIONS OF REMARKS September 9, 19·77 get on their feet and recover from the depre· integrity of the social security fund was (Space provided for additional comments.) dations of the past. mirrored by the fact that one of three 3. Both President Ford and President Car We must, while quotas exist, take those persons responding could not decide on ter have cited the urgency of the energy crisis steps necessary to eliminate the unfair and proposed a number of significant abuses that make quotas necessary. replenishing the fund with general rev enues from the Treasury or by raising changes. We must help our American workers keep A. Should Congress enact President Car their jobs. social security taxes. The variety of re ter's proposed escalating gasoline tax in an sponses indicated there is much confu effort to curtail consumption? sion as to how the fund is maintained (ln. percent] MIXED E;MOTIONS EXHIBITED BY and for what purposes it is used. In other questions, a majority of con Yes ------28 COUGHLIN CONSTITUENTS ON No ------67 ENERGY OPTIONS stituents answering felt our present mili Undecided ------5 tary posture is adequate to meet our B. Should Congress enact a "gas guzzler" needs and present defense spending tax on purchases of cars with low gasollne HON. LAWREN·CE COUGHLIN should be continued. mileage and provide rebates on cars with high mileage? OF PENNSYLVANIA A split developed on the level of Pres ident Carter's "human rights" emphasis (In. percent] IN THE HOUSE OF REPRESENTATIVES on foreign policy. While a plurality feels 1res ------53 Friday, September 9, 1977 it poses unacceptable risks and should be No ------43 Mr. COUGHLIN. Mr. Speaker, in dis modified significantly, this total was only Undecided ------4 closing the results of my annual mail 3 percent more than those who believe c. Should we delay pollution controls as proposed by auto makers who claim it is questionnaire poll, I think the views of it is essentially correct and should be necessary to produce more fuel eftlcient cars my constituents in Pennsylvania's 13th pursued vigorously. and trucks? Congressional District on some of our A clear majority favors continuing the (In. percent] key energy issues are most revealing. United States military and naval pres In short, they have displayed mixed ence in strategic areas of the world such Yes ------47 No ------46 emotions on Government regulation and as Europe, South Korea, and the Middle Undecided ------7 industry responsibility. The results, com East. D. Should we delay pollution controls to piled from responses before a July 31 On the issue of tax credits for educa allow utlllties to convert from oll and gas deadline, represent their opinions be tion, my constituents view aid to parents to coal more quickly and at less expense? fore the House of Representatives passed for costs of college, university, and tech (In. percent] a. so-called energy bill. In many respects, nical school tuition differently from aid Yes ------64 their assessments of how to handle our to nonpublic and parochial elementary No ------30 energy dilemma. reflected the confticting and secondary school tuition. Seven out Undecided ------6 and sometimes contradictory approaches of 10 favor the higher education aid while E. Granted there would be some increase in the House. a slim plurality oppose the nonpublic in consumer costs, should Congress deregu As is my custom, I also will share the school aid. late natural gas wellhead prices to try to results of this poll with the President The problem of congressional credibil prevent shortages? (In percent] and his staff. ity clearly is seen by the fact th~;Lt only In expressing their views on our en one out of three persons felt that U.S. Yes ------56 ergy situation, my constituents soundly Representatives and U.S. Senators No ------~---- 33 rebuffed a gasoline tax as a means of Undecided ------11 should be paid as much as Federal judges F. Should we allow major oil companies to curtailing consumption while a majority and executive branch employees such as provide investment dollars for and control approved of a "gas-guzzler" tax. the White House press secretary. Forty other energy firms such as coal and nuclear? By a. 1-percent plurality, those an three percent said they should not be [In percent] swering approved of delaying pollution paid as much. controls as proposed by automakers who Yes ------34 These questionnaires, as has been my No ------57 feel it is needed to produce more efficient yearly practice, were mailed to every Undecided ------9 cars and trucks. They, however, by a household, apartment, and boxholder in G. Do you believe the energy crisis is solid majority want pollution controls the congressional district to assure as basically a rip-off by on and gas producers delayed to permit utilities to convert to wide a participation as possible. I also and that the government should become coal more quickly and at less expense. will continue my custom of mailing cop further involved in regulating and producing On one hand, my constituents favor ies of the results to constituents. energy? the Congress deregulating natural gas In tabulating the responses, my staff (In. percent) wellhead prices to try to prevent short weighted the returned questionnaires by 1res ------42 ages, but feel that major oil companies ZIP code. This helped insure the accu No ------49 should not be permitted to provide in Undecided ------9 racy of answers by not giving undue in 4. The Social Security System is now an vestment dollars for and control other fluence to any particular community or energy :firms. insurance program into which employers area. The procedure showed virtually no and employees in their working years pay I asked constituents specifically if they difference in the sentiments of constitu money to provide benefits later on retire basically believe the energy crisis is a ents in the Montgomery County and ment. Because of the number of elderly and ripoff by oil and gas producers and if Philadelphia portions of the district. the amount of benefits, the Social Security Government should become further in More than 12,500 individual responses Fund is low. Should the Fund be replen volved in regulations and producing en were received before the deadline, an in ished: (one only) ergy. By 3 percent, a plurality said crease of some 2,000 over last year. Thou (ln. percent) "yes." From Treasury's general revenues, thus In stimulating the economy, a clear sands of other responses were received after the deadline, but could not be in making Soci~l Security a welfare-type majority opposed additional job creation program ------23 at this time by the Government through cluded in the tabulation: By increasing Social Security taxes, more spending with the resultant in QUESTIONNAIRE RESULTS thus cC'ntinuing the program on an in crease in the national debt. Of those who 1. To stimulate the economy, do you be surance basis------41 answered in the negative, many wrote lieve additional jobs should be created at this Neither (specify)------36 suggestions in the space provided with tlme through more government spending 5. With publication of conflicting reports the most prevalent comment relating to with a resultant increase in the national on Soviet mmtary strength, which best re deficit? flects your opinion of the United States' incentives for businesses, corporate tax (ln. percent] reductions, and similar proposals. present military posture? (one only) Other views included curtailtng for Yes ------22 (In. percent] No ------72 eign impOrts, particularly cars; ending Undecided ------6 More than adequate to meet our needs- foreign aid, and enacting a wage-price 2. If your answer to Question 1 is "no", cut defense spending______20 freeze. please explain briefly how we should create Inadequate to meet our needs-increase The difficult problem of protecting the more jobs? defense spending______24 September 9, 1977 EXTENSIONS OF REMARKS 28623 Adequate to meet our needs-maintain prohibit involuntary retirement at an father, a banker who was required to step present defense spending______56 age less than the protected age under down at age 70. 6. Do you think that the level of President the act. He had been active in his work, having Carter's "human rights" emphasis on foreign "contacts with people, going places and mak policy is: (one only) Over the course of the past few ing decisions," Mr. McMann said. "Then all years the courts have been divided on [In percent) of a sudden this terminated and he didn't the interpretation of the legislative his know what to do with himself. Essentially correct and should be pur tory associated with the bona fide retire "He wasn't a m•an who had a lot of hob sued vigorouslY------40 ment exception. The controversy centers bies. His employment was his hobby. It got Posing unacceptable risks and should be to the point where he didn't have the mo modified significantlY------43 around section 4(f) (2) of the ADEA which permits an exception by making tivation to be active. He ended up sitting at Undecided ------17 the dining room table with his head in his 7. Should the United States phase out its lawful "to observe the terms of a bona hands and just deteriorated." military and naval presence in strategic fide seniority system or any bona fide That experience reflects findings of an areas of the world such as Europe, South employee benefit plan ... which is not American Medical Association committee re Korea and the Middle East? a subterfuge to evade the purpose of this port, cited in Mr. McMann's Supreme Court [In percent) act." The legislative history shows that case. It said the mental and physical health the purpose of this exception was to en of many people was seriously hurt by the Yes ------25 "loss of status, lack of meaningful activity, No ------64 courage the hiring of older workers by Undecided ------11 fear of becoming dependent and isolation" permitting their employment without that may accompany involuntary retirement. 8. The House of Representatives consist necessarily providing them with exactly And it noted that suicides reach a peak in ently has refused to permit a vote on my the same pension, retirement, or in upper age brackets, 70 years and over, af.ter legislation to provide tax credits for surance benefits which arc afforded to retirement normally occurs education. younger workers. During the Senate de Francis McBride, a ~_6_-year::old graduate of A. Do you favor legislation to grant tax .. the University- of Virginia law school, became credits or deouctions to parents--for costs of bate, Senator YARBOROUGH, the manager of the bill, stated, "This will not deny an Mr. McMann's lawyer. non-public and parochial elementary and After exchanging letters with a company secondary school tuition? individual employment ·or prospective employment but will limit his rights to official, who ruled out an exception for Mr. [In percent) obtain full consideration of the pension, McMann, the young lawyer instituted griev Yes ------47 ance proceedings. They lost, but the arbitra retirement or insurance plan." tor, Archibald Cox, the former Watergate No ------49 Undecided ------4 Later this fall the Supreme Court will special prosecutor, noted that redress might hear the McMann against United Airlines be sought under the Age Discrimination in B. Do you favor legislation to grant tax case which deals with the question of Employment Act of 1967. credits or deductions to parents for costs of The law prohibits age discrimination in college, university and technical school involuntary retirement prior to the age 65 under a bona fide retirement plan. hiring and dismissal of employees 40 to 65. tuition? But it also says: "It shall not be unlawful [In percent) Recently, the New York Times carried for an employer to observe the terms of any · Yes ------70 an article describing the circumstances bona fide employee benefit plan such as a No ------26 surrounding McMann's suit. The article retirement, pension or insurance plan, which Undecided ------4 follows: is not a subterfuge to evade the purposes of 9. Should U.S. Representatives and U.S. [From the New York Times, Aug. 30, 1977] this act." Senators be paid as much as Federal judges FOUR YEARS AFTER AIRLINE EMPLOYEE WAS Mr. McMann filed suit in Federal District and Executive Branch employees such as FORCED To RETIRE, HIS PROTEST GOES BE Court in Alexandria, Va., on Jan. 31, 1975, the White House press secretary? FORE SUPREME COURT Judge Albert Bryan Jr. dismissed it after [In percent) United argued that Mr. McMann was retired WASHINGTON, August 29.-It didn't seem under a bona fide employee benefit plan of Yes ------33 right to Harris McMann when United Air the type exempted in the law. No ------43 lines, his employer for nearly three decades, Undecided ------24 He went next to the United States Court insisted in 19-73 that he retire. of Appeals for the Fourth Circuit in Rich [In percent) His health was good. He enjoyed his job. mond, where the Labor Department filed a Party preference of those responding: He saw no reason for suddenly ending his "friend of the court" brief supporting him. A working years. No reason except his age, 60. Republican ------63 Four years later, the former pilot's legal three-judge court ruled in his favor Oct. 1, Democrat ------21 1976, saving any pension plan that contains protests aga.lnst what he views as simple age a provision for mandatory retirement before Non-partisan ------14 discrimination are at the center of a Su Other ------2 preme Court battle. age 65 must be presumed "a subterfuge to [In percent] The nine justices will decide this winter evade the purposes of the act. Ages of those responding: or next spring whether Mr. McMann's rights COURT RULED PLAN A SUBTERFUGE 18 to 21------1 were viol•ated when he was forced to retire. But United announced its intention to ap 21 to35------21 The case may affect more than 11 Inillion peal to the Supreme Court, and on Feb. 22 35 to 60------25 Americans who the Labor Department says the justices agreed to review the case in the 50 to 65------34 are memoors of pension plans that require term beginning this fall. 65 and over------19 retirement before age 65. Mr. McMann is spending the summer wait "I've been accused of being stubborn," Mr. ing, doing some "freelance" flight instruc McMann conceded with a grin in an inter tion and taking care of personal affairs. AGE" DISCRIMINATION IN EMPLOY view at his comfortable home in Fairfax, Va., He may turn 65, and be beyond the scope MENT ACT AMENDMENTS a Washington suburb. "And I guess I am." of the Age Discrimination Act, by the time He said he began working for United in the justices rule on his case This means he Chicago as a copilot in 1944 at the age of could no longer hope to win reinstatement to HON. AUGUSTUS F. HAWKINS 31 and held various jobs with the company his job, but he might receive instead a sub over the years, finally taking on a mana~e stantial amount of back pay to make up for OF CALIFORNIA ment post. In 1964, after previously declin lawyer's fees and the time and energy he IN THE HOUSE OF REPRESENTATIVES ing to join an employee pension plan, he be has put into his personal "gamble" in court. Friday, September 9, 1977 gan thinking more about future security and "To me, I look at it and say this is illogi signed up. cal, this is an injustice, this is social policy Mr. HAWKINS. Mr. Speaker, later The card he signed noted that the "nor that should be done away with,'' he said. this month the House of Representatives mal retirement age" for employees in his "This is the only way available for me to will consider H.R. 5383, the Age Dis classification was 60. But Mr. McMann said change it." crimination in Employment Act Amend the realization of what that meant did not He noted that legislation was pending in hit him until about a year before his 60th Congress to give the Age Discrimination Act ments of 1977. The major provisions of birthday. the legislation include extension of the broader impact. "I was enjoying good health,'' he sa.id. "I Even 1! he should lose in the Supreme upper age limit of protection for non was enjoying my work and Wl8.llted to con Court, he said, he feels sure that the law and Federal employees from age 65 to age tinue on. I didn't really have anything par changing times will end involuntary retire 70; abolition of the upper age limit for ticular to do." ment. Federal employees and clarification of REMEMBERS HYS FATHER'S EXPERIENCE "I believe the time has come that people are the exemption for bona .fide retirement One thing that prodded him to fight beginning to realize that this is a form of and pension plans under current law to forced retirement was the experience of his discrimination." 28624 EXTENSIONS OF REMARKS September 9, 1977 AMERICOLOGY,MILWAUKEE'SPLAN REMARKS ON HEW ANNOUNCE- working in close cooperation with Sena FOR RESOURCE RECOVERY MENT CONCERNING REDUCTION tor TALMADGE and the Finance Commit IN MEDICAID PAYMENTS tee to allow a rapid conference on H.R. 3 when the House has completed action. HON. HENRY S. REUSS The Finance Committee has moved HON. PAUL G. ROGERS ahead to mark up legislation to curb OF WISCONSIN fraud and abuse in medicare and medi IN THE HOUSE OF REPRESENTATIVES OF FLORIDA caid that differs only in relatively minor Friday, September 9, 1977 IN THE HOUSE OF REPRESENTATIVES ways from the legislation we are recom Mr. REUSS. Mr. Speaker, during the Friday, September 9, 1977 mending to the House. They expect to August district work period, I had the Mr. ROGERS. A number of Members complete Senate action in mid-Septem opportunity to tour the city of Milwau of the House have indicated concern to ber, and we are confident that we can kee's new resource recovery facility, me over the announcements made by present a bill to the President before the Americology. HEW yesterday that 14 States are sub reductions take effect. The facility is the result of an agree ject to reductions in Federal matching ment signed on January 16, 1975, be funds for their medicaid programs for tween the city of Milwaukee and the the quarter ending June 30 because of American Can Co., under which the com failure to meet the utilization control re CALIFORNIA ADMISSION DAY pany would design, construct, finance, quirements of the law; estimated reduc and operate a 1,500-ton-per-day re tions are nearly $107 million. Addition HON. GLENN M. ANDERSON covery facility which would process all of ally, because the temporary postpone OF CALIFORNIA the city's and its surrounding area's solid ment of earlier reductions which was IN THE HOUSE OF REPRESENTATIVES waste. enacted by the Congress as an emer The plant began operations in January gency measure at the end of June goes Friday, September 9, 1977 of this year, and it is now processing over out of effect after September 30. HEW Mr. ANDERSON of California. Mr. 60 percent of Milwaukee's waste. Pres has announced that additional reduc Speaker, September 9 is traditionally an ently, the facility is recycling waste into tions of nearly $141 million in Federal important day in the history of the State reusable ferrous and nonferrous met~ls, medicaid funds for 20 States will also go of California. It marks the anniversary glass, and energy. In fact, Americology into effect. of our State's admission into the United produces six units of energy for every It is unfortunate that HEW chose to States, and is annually celebrated as a unit of energy it consumes. notify Members of Congress about the holiday in commemoration of that event. The plant uses a variety of equipment potential reductions without noting that California has a rich and interesting to isolate recoverable and recyclable ma H.R. 3 contains a provision to deal with history, marked by influences from sev terials. The refuse is first shredded, then this problem. That bill, which has re eral cultures which have combined to separated in an air classifier, and then ceived a rule and is expected to be make our State unique among the other further processed through magnetic and brought to the House fioor for action in States of the Union. Prior to the arrival electromechanical devices. Products re the next 10 days, not only provides for of European settlers, approximately 130,- covered through these techniques will be a postponement of any reductions until 000 native Americans made the Golden sold by Americology for use as recycled after December 31, but it also provides State their home, living in the land raw materials and fuel. that any State which is in compliance On an annual basis, given the mini which varies between seacoast and des mum 250,000-ton input which the fa with the requirements of the law at that ert, forested mountains and fertile inland cility will handle, the following valuable point will have earlier reductions can valleys. resources will be recovered for sale and celled. My contacts with State medicaid The first European to see California reuse: Fiber fuel, 137,500 to 162,500 tons; officials have convinced me that most was Juan Rodriguez Cabrillo, a Portu ferrous metals, 12,500 to 17,000 tons; States believe this is a reasonable and guese explorer sailing under the fiag of aluminum, 750 to 1,250 tons; paper, 7,500 just solution to the problem of the re Spain, who sailed to the Pacific coast in to 12,500 tons; and glass aggregates, ductions that have been announced. 1542. Although English explorers claimed 17,500 to 25,000 tons. These levels will in They support a further examination of the State in 1579 and Russians made crease as suburban communities partici the basic requirements of the law, of claims to the area as well, Spanish in pate with Milwaukee in the resource course, and the Subcommittee on Health terests prevailed. California's early his recovery program. The Americology fa is prepared to do that. But the indica tory was marked by the establishment of cility has the capacity to handle up to tions that State medicaid directors have a series of missions along the coast from 400,000 tons of refuse per year. given to me are that they do not favor San Diego to Sonoma, and of the growth The Wisconsin Electric Power Co. will many of the provisions in the adminis of communities around those outposts. use the fiber-fuel component, which con tration's proposed bill, and they would After Mexico received its independence stitutes up to 65 percent of the refuse, prefer to have some time to develop sug from Spain in 1822, California became a at its Oak Creek generating station, as gested alternatives before changes in the Mexican province, with its social and a boiler fuel to generate electric power. legislation are considered. HEW con economic life based on the huge cattle The fuel is mixed with pulverized coal, tinues to ignore these concerns, however, ranches, or ranchos. The first organized and represents an energy recovery equiv and each time they announce a reduc group of U.S. settlers arrived in 1841, and alent of 75,000 tons of coal per year. tion, they attempt to exert pressure on the United States offered to buy the Eventually the city of Milwaukee will the Congress to act precipitously. province from Mexico, who refused. derive 15 percent of its electrical needs H.R. 3 provides us with the opportu When the Mexican-American War from the plant's refuse-derived fuel. nity we need to undertake more deliber broke out in .1846, the United States The new Americology unit is an alter ate consideration without the threat of seized the opportunity to occupy Cali native to the landfill method which has hundreds of millions of dollars in reduc fornia. For a brief period of time, Ameri been used by the city. The entire cost tions in State funds hanging over our can settlers declared the State independ of the facility has been borne by Ameri heads. The Interstate and Foreign ent of Mexico, and established the short can Can Co. The city of Milwaukee has Commerce Committee's recommended lived Bear Flag Republic as an independ an option to purchase the facility and amendments will relieve the immediate ent nation. However, effective control to share in the revenues from the sale pressure on the States from the reduc was soon gained by the military, and of recovered products, if it chooses to do tions, and allow them a new chance to Mexico was forced to cede California to so. No change in the collection of garbage meet the requirements of the law. As I the United States in the Treaty of in the city is required, and the present indicated, we expect that the Members Guadalupe-Hidalgo in 1848. disposal methods followed by city resi of the House will have an opportunity Less than 2 weeks before the treaty dents will be continued. to act on this legislation shortly. We was signed, an event that changed the Resource recovery makes sense. Mil have requested the leadership to give history of California took place--gold waukee's Americology plant is helping to priority to scheduling the bill for consid was discovered at John Sutter's sawmill show the way. eration. Furthermore, we have been near Coloma. The gold rush drew a huge September 9, 1977 EXTENSIONS OF REMARKS 28625 influx of new settlers into the State, tion in any new minimum wage bill. Teenagers represent more than one-tenth guaranteeing its admission into the Small business men and women should of the small business work force, the survey Union. not have to stand helplessly by as their showed. Women, many entering the job mar However, it did not come easy. Increas ket for the first time, hold nearly a third of already small profit margins dip to zero. all jobs in small businesses. ing tension between slave and free States For the information of my colleagues "The tragedy of a substantial minimum and their representatives in Congress I am including the text of the press re wage increase is obvious," Johnson said. delayed California's admission. Finally, lease issued by the National Federation "Teenage unemployment, now more than 15 Henry Clay was able to effect the Com of Independent Business. percent nationwide, will increase under a promise of 1850. On September 9 of that (Press Release) new minimum wage law because many of year, California officially became a mem CHICAGO, August 26.-Thousands of small them are marginal employees already and ber of the Union of the United States as business people wlll make less than the wages marginal small businesses can't afford to a free State. keep the yongsters working." they pay their employees if a proposed mini The survey did show that small businesses Mr. Speaker, today California stands mum wage increase now before Congress do need skilled manual workers and that as one of the most important States in passes, according to a new nationwide survey they are wllllng to pay them from $3.50 to the Union-largest in population, agri of small businesses undertaken by the Na $5.75 an hour. The demand for sk11led man culture, and commercial fishing; second tional Federation of Independent Business ual workers and their wage scale 1s more in manufacturing and lumber produc (NFIB). than the demand or the wages for clerical, The survey, released by WilsonS. Johnson, sales or managerial personnel. The survey tion; and third in land area and oil pro president of NFIB, a nonprofit, nonpartisan duction. We are rich in natural resources, indicates that there is little demand today organization representing small businesses, for unskilled workers in small business and geographic variety, and scenic wonder. shows as many as 15 percent of the nation's the demand wlll diminish further with a We also have our areas of difficulty 3.5 mlllion small business employers will minimum wage increase, Johnson said. high unemployment, rising cost of living, make less than the proposed $2.65 minimum Johnson said NFIB, which represents more and remaining injustice in many areas wage now being considered by Congress. The than 518,000 small firillS nationwide, strongly current minimum wage is $2.30. opposes a minimum wage increase. against our ethnic minorities. Further evidence of the crippling impact Few States, however, have taken such of the proposed minimum wage increase can He explained that the proposed increase determined steps to meet problems as be found in survey data that indicates small would send the hourly minimum wage to California has done, and fewer st111 have employers making less than $10,000 stand to $2.65 in January, $2.89 in 1979 and $3.15 in met with as much success. So it is only lose 19 percent of their earnings to comply 1980. The legislation also contains an index based upon the hourly wage of production with such a new law. If they make between fitting that California Admission Day be workers in manufacturing which would raise celebrated as a State holiday, recalling $10,000 and $15,000, the survey shows com the minimum wage every year automatically. our rich and unique heritage while look pliance would cost them 12 percent of their earnings. "Indexing 1s just another example of Con ing forward to the promises of the "This confirillS the tragic story we at NFIB gress shirking its responsib111ty like it did future. have known for too long-many small busi with the Postal Service," Johnson said. ness people are being forced by the federal government to pay employees more than they SMALL BUSINESSMEN TO MAKE theillSelves make," Johnson said. LESS THAN THEIR EMPLOYEES? Johnson said there aren't many options FOREIGN POLICY TOWARD CHINA for small business people in Chicago and Illinois who now pay their employees a $2.30 HON. JOHN M. ASHBROOK minimum wage if the increase passes Con OF OHIO gress. "If they can't pay the 35-cent hourly HON. PHILIP M. CRANE OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES hike in wages, they must lay people off, raise prices charged the consumer, or go out of IN THE HOUSE OF REPRESENTATIVES Friday, September 9, 1977 business," Johnson said. Friday, September 9, 1977 Mr. ASHBROOK. Mr. Speaker, the The survey indicates that one reason why National Federation of Independent so many small business employers have low Mr. CRANE. Mr. Speaker, the Carter hourly earnings is the number of hours they administration's efforts to "normalize Business recently completed a nation put in. As a group, small business men and wide survey regarding to effect of the women average 58 hours a week on the job, relations" with the People's Republic of proposed minimum wage bill on small the survey concludes. China has ignited a :flow of letters to businesses. According to the results of Those 58 hours weekly don't include all the many congressional offices from persons this survey, thousands of small business unpaid family help that many of those small all over the United States. Not only has men would make less than the wages firillS rely upon, Johnson noted. The survey my office received many letters from they pay their employees if the bill is shows that one of every four small firms re persons in the United States opposing ceives an average of 20 hours a week in un the President's foreign policy toward enacted. paid help from other family members. The NFIB survey indicates that as China, but I have also received well over "Name me any other group--workers or 100 pieces of mail from Taiwan. Al many as 15 percent of small business em employers-who put the kind of time in their ployers would make less than the pro jobs that small business fammes do," John though every letter was written in Chi posed statutory minimum. A major rea son said. "Small business people and their nese, they were translated and I would son for their low hourly earnings is the families do it because it is a labor of love and like to share two with you. These letters, tremendous number of hours they put in. they believe in the free enterprise system." written by Chinese who are certainly The survey found that as a group small Small businesses are willing to pay their more familiar with the Communist Chi employees a reasonable wage, according to nese than we are, implore the United business men and women average 58 the survey. The survey indicates that more States not to abandon Taiwan. They hours a week on the job. Moreover, even than half of the small business employees also appeal to our commitment to human the 58-hour :figure does not include all receive $4.00 or more per hour. Also, almost the unpaid family help that many small one half of the small business employees re rights and freedom. The intentions of ceive bonuses or extra compensation, the our present administration have left businesses depend upon. them perplexed and confused, for they This is not the only indication of the survey shows. Median wages paid small busi potential adverse impact of the minimum ness employees 1s far above the minimum cannot understand how the abandon wage with small business employers paying ment of the Republic of China will en wage bill. The survey data also shows new employees an average of about $3.25 hance the prospects for world peace and that small business employers making hourly, according to the survey. stability. about $10,000 a year stand to lose 19 "Small business people employ 56 percent percent of their earnings to comply with of the private, non-farm workforce. They Following are two letters to President such a new law while those making be realize you must pay a good wage to get good Carter, copies of which were received in tween $10,000 and $15,000 would forfeit employees and those who can are more than my office: 12 percent of their earnings. Some others willing to do so," Johnson said. "Minimum ROC CLERGYMAN WRITES CARTER would be driven out of business while wage increases hurt those small business (NoTE.--Qne of the many letters to Presi people in marginal operations and their em dent Carter in protest of his movement to others would have to reduce their work ployees who normally need more work ex promote relations with the Peiping regime force. perience before moving up to better paying was written by C. C. Chen, president of the All of this points to the need for Con jobs. It also hurts marginal employees in Churches Union of the Republic of China, gress to provide a small business exemp- larger, more profitable businesses." on behalf of the union. It reads as follows.) 28626 EXTENSIONS OF REMARKS September 9, 1977 JULY 30, 1977, strength." God ultimately will triumph. We sible", is an apt summary of the present Mr. JIMMY CARTER, pray that God will give you the wisdom to situation. You, a far-sighted and high-prin President of the United States of America, make choices that conform to his will, so cipled politician, can certainly, by means of Washington, D.C. that you as a. person, and your nation, wlll healthy policies in the spirit of justice and DEAR MR. PRESIDENT: We understand that prosper. moral courage, stop the process of "normal you are a. dedicated Christian. We were en DR. C. C. CHEN, izing" relations with the Chinese Communist couraged when, at your inauguration, you President of Churches Union. regime. quoted Micah 6:8 and made it the main The following is a letter to President STARTLING EVENT theme of your address. We have prayed that Carter from all the members of the On July 7 of this year, a startling event God would send a strong man of God to Catholic Church in the Republic of occurred: A Chinese Communist air force protect all Christians from a.n expanding squadron leader, Fan Yua.nyen, defected Communist tyranny. We hoped that you were China: from the totalitarian regime on the China. such a man. DEAR PRESIDENT CARTER: We, the National Mainland and flew a MIG 19 jet fighter to Your intention, made public in a June 30 Council for Apostolate of the Laity, represent the Republic of China and freedom. His first press conference to normalize relations with 300,000 Catholics living in the free area of the words after landing on the soil of Free China the Chinese Communists is a. shock a.nd a. Republic of China, as well as 4 million Cath were: "Life on the (Chinese) Mainland is disappointment to us. We need people who olics living under oppression on the China too hard." will protect us from a. vicious and expanding Mainland. We send you our sincerest regards This statement sums up the entire tragedy Communism, not people who wlll consign and wish you the peace of our Lord Jesus of the China Mainland. us to it. You are a. Christian and we are Christ. President Carter, you who are deeply con Christians. How can you betray us to our A few months ago, through the news media, cerned about world affairs, were certainly enemies? Please keep those points in mind we watched with great interest and excite made aware of this event. You who are con when you pray for divine guidance. ment your inauguration as President of the tinually promoting human rights and call 1. Early in your presidency you, presum United States of America. Your stirring and ing for justice were certainly deeply moved. ably on the basis of your Christian commit impressive address, your wisdom, outlook, and Therefore, we are confident that you under ment, made a strong defense of freedom ana moral courage filled us all with the greatest stand clearly that the people living on the human rights. The Chinese Communists have respect for you and made us feel certain China Mainland have rejected their totali more seriously and consistently denied hu that the free world had found a trustworthy tarian rulers. Fan Yuan-yen's statement is man rights than have the Russian Commu and capable leader. the clearest proof of this fact. nists. Last year, on April 5, 1976, over a mil President carter, that which struck us as After hearing this proclamation by a. lion people gathered in the Tien An Men most admirable and impressive in your ad spokesman for 800 million suffering people, square in Peiping and demanded freedom. dress was your emphasis on the goals of you surely realized more clearly the violence Only a few days ago a Chinese pilot, Fan "human rights" and "morality". We firmly and inhumanity of the Chinese Communist Yuan-yen flew a Communist MIG-19 to believe that these two objectives are the only regime. Certainly you will quickly stop any Taiwan. seeking freedom. The 800 million truly solid cornerstone of the United States plans to establish relations with them. people on the China. mainland are as devoted and of the entire world. CONFIDENT to freedom and human rights a.s you are, CORDIAL RELATIONS but their attitude toward the Chinese Com We feel confident that, because of you, the munist government is very different. President Carter, the United States and the Declaration of Independence and Bill of 2. The Chinese communist regime has Republic of China lie on either side of the Rights, written by the founding fathers of been and still is brutally anti-Christian. Pacific Ocean and maintain friendly and the United States of America, will shine They have relentlessly persecuted Chris cordial relations. Our 5,000 year old system of throu,ghout the world with even more bright tians, slaughtered believers, confiscated philosophical thought and code of moral ness. Likewise, we have great hopes that be churches, burned Bibles, expelled mis values coincide perfectly with the original cause of your fortitude and incomparable sionaries, closed convents, appropriated objectives of the United States, as found in moral courage, the light of truth will begin schools and hospitals, prohibited evangelism. the Declaration on Independence: . . . all to illuminate the dark shadows which now After the "cultural revolution" Christian men ... are endowed by their Creator- with obscure all life on the China Mainland, You, tty became almost extinct on the Chinese certain inalienable rights, that among these an outstanding Christian, prudent, decisive, mainland. In Taiwan, on the other hand, are life, Uberty, and the pursuit of happi and unwavering, supported by the great Christianity enjoys unprecedented freedom ness." The values of morality and human mercy, wisdom, a.nd courage of all children and considerable expansion. rights which you stressed so clearly in your of light cannot fall to conquer the children The United States is a key nation. You inaugural address are identical with these of darkness. Goodness will surely win out are a Christian president. This makes you a. objectives. over evil! The cry for justice which permeat symbol for Christians all over the world. Today, on the China Mainland, the Chinese ed your inaugural address, and which will How can we believe that you want to dem Communist totalitarian regime is acting in resound throughout the world for all time, onstrate that Christians find other Chris direct contradiction to the spirit in which the together with your spirit of love and con tians expendable in the chess games of United States was established, and which was cern for all men, will unquestionably give international politics? so evident in your cry for justice. The United great pleasure to our God above, and earn for 3. Communist expansion is the basic cause States Government is currently considering you His most special blessing of instab111ty, the main threat to world the "normalization" of relations with the President Carter, at a time when the whole peace. Cooperating with Communist expan Chinese Communist regime. This has caused world is on the verge of chaos, at an ex confusion and disappointment to us and sion expands tyranny-this is no road to ~remely crucial point in man's history, we peace. countless other advocates of justice through oeg you, do not fall to bear courageously your 4. International relations depend on agree out the free world. grave responsib111ty to all men, and to guide ments and treaties, and rest ultimately on President Carter, we realize that your goal back to the proper path all those who have the moral principle of trust. If you demon is the pursuit of peace; but you must realize been misguided and deceived. This is a. great strate that the U.S. is an untrustworthy ally, that the party with whom you are dealing and glorious mission! You must not shrink vou have shamed and degraded your nation, is a hateful and untrustworthy disciple of from it! and made continuing Communist victories totalitarian rule. Any agreement with such We remain, Sir, an entity is absolutely unreliable. The Chi Yours respectfully, easier. nese Communists are insatiable aggressors, If you betray Taiwan, now can Japan trust obsessed with the sole ambition of conquer FRANCIS C. C. SUNG, you? Without Japan the Pacific will be open ing the entire world and burying for good President, National Council of the Lay to Russian penetration. Immoral actions all democratic nations. Strong and prosper Apostolate of the Republic of China. bring tragic consequences. This is because ous countries are their biggest enemies. To God is just. negotiate with them for peace is, as we 5. The previous administration made serious Chinese put it, about as safe and promising AMAZING NEW TREATMENT CAN mistakes in its China. policy. Yours is a. new as bargaining wi.th a tiger for his hide 1 SAVE HALF OF DOOMED CANCER administration, trying to make a cleaner Today, the China Mainland is shrouded in VICTIMS record. Why do you follow Nixon's mistakes? darkness. 60 million people have been cruelly 6. Our late beloved President Chiang was murdered, 800 million people are living on a sincere and devout Christian. The Repub the edge of starvation; their lives have no HON. LARRY McDONALD lic of China, like the United States of security, freedom is nonexistent, the human OF GEORGIA America, has devoted Christian leadership. right of "the pursuit of happiness" is an IN THE HOUSE OF REPRESENTATIVES Christians ought not be betrayed to their empty dream for them. If one establishes enemies. relations with such a regime, at the expense Friday, September 9, 1977 7. We pray to the same God you do. We of truth and justice, even a temporary peace Mr. McDONALD. Mr. Speaker, every believe in the same Bible you do. Our Bible 1s unlikely to result, while the future is sure so often there is a sensational story about says: "Fear not, for those who are with us to bring disaster and chaos. The current Pon are more than those who are with our enemy. tiff, Pope Paul VI's statement, "While human yet anoth~r "miracle" cancer cure. This Jehovah is our rock. Jehovah is our rights are suppressed, no talk of peace is pos- story do~ bbt fall in that category. This "'·:'~!:• : . September 9, 1977 EXTENSIONS OF REMARKS 28627 treatment works. I have seen it with my "This is an amazing percentage of success therapy, radiation and surgery, but there was own eyes and personally know some of compared even to short-term survival rates still a cancer growing in her right hlp. the individuals involved. Originally this of chemotherapy and radiation," declared "But as the (serum) treatments progressed, Dr. Beaty, a teaching assistant in clinical the pain left. The before-and-after bone treatment was started in the United medicine at Columbia University's College of scans showed that while the cancer was still States, but the Food and Drug Adminis Physicdans and Surgeons. there, it had stopped growing. This is out of tration in its usual club-handed manner "All 10 (of the terminal patients) owe the ordinary," Dr. Finch pointed out. got in the way and attempted to stop the their very survival to Dr. Burton's treatment. "I think Dr. Burton's treatment should be work by imposing impossible conditions When they began his program, they were looked at further." upon the work. So now it is carried on in declining so rapidly that they were given "Ted Alexander, a school psychologist in the Bahamas. In the foreseeable future only a month to a few months to live. But Commack, N.Y., learned in 1974 that he had all of them have defeated that terrible an inoperable tumor inside his skull. He said enough medical evidence will have been prognosis. Not only have they survived-they doctors gave him just four months to live assembled for it to be brought back to also show tumor shrinkage, appetite im but today he's still alive. the States and presented to all the provement, weight gain and loss of pain. Dr. Donald Cole of Whitestone Hospital, skeptics, 'complete with medical rec "I believe this is a breakthrough in the who had treated Alexander with chemother ords. As the article describes, miracles treatment of cancer-the single best frontier apy and radiation before the psychologist un have and are being achieved; however, in cancer therapy today. derwent serum treatment, commented: "It who knows what lurks in the hearts of "It's quite reasonable to think that if Dr. certainly appears that this patient's improve the bureaucrats at FDA, they may yet Burton's treatment were widely available, we ment may be partially or even completely at could save as many as 50 percent of the tributable to Dr. Burton's treatment." discover a new method of blocking hope people who now die every year of cancer in Robert Beesley, a Monroe, Iowa, building again. The article from the National En this country." contractor, underwent surgery in July of 1975 quirer of September 13, 1977, follows: The anti-cancer injections contain a to remove a massive colon cancer. AMAZING NEW TREATMENT CAN SAVE HALF OF combination of four agents found in every Surgeons found the cancer had spread to DooMED CANCER VICTIMS human's blood, Dr. Burton said. The agents his liver and lymph glands-and told his A fantastic new treatment for cancer is include an antibody that destroys cancer brother he had only three months to live. bringing scores of doomed victims back cells, plus a substance that keeps the anti Beesley underwent serum injections. from death's door-and amazed doctors say body working despite attempts by the tumor "I'm alive today because of Dr. Burton's it could save 50 to 75 percent of the 385,000 to block it. treatment--it was the answer to the prayers Americans who die of cancer each year. "The cancer injection works on all kinds of my family," he said. The treatment is simple yet devastatingly of cancers, no matter the site or type," Dr. Added Beesley's pediatrician brother, Dr. effective, say patients and their physicians. Burton said. James Beesley: "I'm astounded! I expected Blood serum agents are injected into the vic "We've actually seen tumors begin to die my brother to die. So did his doctor. But now tim, and these help the body's own defenses within 24 hours. Some patients go home ap he's been given a new life." destroy the cancer. parently free of cancer after only 10 days of The incredible eft'ectiveness of Dr. Bur The method was developed by Dr. Lawrence daily injections!" ton's immunological approach was attested Burton, for 15 years a cancer researcher at Dr. Burton-whose work is funded by a to by Dr. Antonio Rottino, director of re the prestigious Hodgkins Disease Foundation private foundation-first began treating pa search at the Hodgkins Disease FOundation at St. Vincent's Hospital in New York. He tients 8it a clinic he set up on Long Island. where Dr. Burton spent 15 years. left that post to begin testing his treatment Last March he opened the Immunology Re He was able to make a tumor disintegrate on humans----and has had stunning success. searching Center in Freeport, Grand Ba within 15 minutes," recalled Or. Rottino. It "Over the past 3¥2 years, 186 patients have hamas, to get away from the U.S. Food and was very surprising the first time I saw it, Drug Administration's red tape. and hard to believe-but the fact is that it been treated on my program," Dr. Burton did occur." told the Enquirer. "All but eight were termi "The FDA required tests of us that were "If he works with other people with more nal-t~ey'd exhausted all conventional treat pointless, time-consuming, and which our nonprofit organization could never afford," fundamental knowledge, this kind of work ments, and had been told by their physicians could point to a cure for cancer." that recovery was hopeless and they had a he explained. Almost all the patients Dr. Burton receives Dr. Oarl Markwood, a Sacramento, Calif., very limited time to live specialist in preventive medicine who has "But our most recent figures show that of "are considered by their referring physicians these 186 patients, 114 are alive today! to be terminal," he noted. "If we could just observed Dr. Burton's work firsthand, also 1s get to these patients sooner after the diag convinced the researcher may be on the right "Of these surviving patients, 32 are alive track. less than one year after treatment, 52 are stm nosis. I think we could save as many as 75 percent of those who now die of cancer. "I've seen dramatic cases in which patients' alive one year or more after treatment, and lives have been saved by his treatment when 30 patients are still alive at least two years "And we don't know how high the success rate could go!" every other therapy had failed," said Dr. after treatment--and these were terminal Markwood. patients when they first came to us 1 Because Dr. Burton is a zoologist, the serum injections actually are administered by Dr. "From Dr. Burton's present success in con "Thirty of my patients had what must be trolling cancer, we think this approach could called miracle remissions-they exhibit no Frederick Weinberg, who was chief patholo gist at Central Islip Psychiatric Center on be the long-sought road toward curing sign of cancer. Eighty are in regression, which cancer." means their cancer is either diminishing or Long Island from 1950-75. Dr. Weinberg told completely arrested. In the other four cases, the Enquirer he was skeptical at first--but it's too soon to tell the success." joined Dr. Burton after seeing the results of American doctors who've closely followed serum treatments on dying patients. GOVERNOR REAGAN OPPOSES Dr. Burton's work are enthusiastic about the "In all my years in medicine, I've never PANAMA CANAL TREATIES incredible results. seen any treatment that has yielded this "This technique has the potential to be number of dramatic remissions in this short a tremendously significant addition to our a time," he said. HON. JOHN M. ASHBROOK anti-cancer arsenal," declared Dr. Donald "If this approach were widely available and 01' OHIO used in conjunction with other therapies Cole, chief of surgery and oncology at White IN THE HOUSE OF REPRESENTATIVES stone General Hospital in New York. after early diagnosis, we could save up to 70 U.S. Congressman Lawrence McDonald percent of the people who die of cancer every Friday, September 9, 1977 (D.-Ga.), a urological surgeon, said he's year. referred about 20 patients to Dr. Burton "And this immunological approach is pain Mr. AS~BROOK. Mr. Speaker, any and 50 percent have improved. less and simple compared to chemotherapy one familiar with the continuing debate "This is a dramatic success rate in view of and radiatton." on the issue of a Panama Canal treaty the serious condition the patients were in," Here are some of Dr. Burton's amazing case knows, that Gov. Ronald Reagan, Cali noted Rep. McDonald. histories: fornia s top elected official for the past "Many were terminal cases, having only a Leola Klise, a 67-year-old widow from two gubernatorial terms, is no newcomer limited time to live-possibly months. But Grand Rapids, Mich., was in agony from to this long-standing controversy. Yes some of them have lived for nearly a year terminal cancer of the pelvis when she began now. These patients owe their survival to treatments. But after six weeks, she said, her terday he appeared before the Senate Dr. Burton's technique." pain vanished-and the cancer stopped Judiciary's Subcommittee on Separation Dr. John Beaty, a staff physician at growing. of Powers and presented his views on the Greenwich Hospital in Greenwich, Conn., "It was just incredible I" Mrs. Klise said. proposed treaties. Touching on the vari sent some 20 patients-many of them termi "There's been a real miracle in my life." ous legal aspects, U.S. management of nal-to Dr. Burton. He said 17 are stlll alive Her physician, Dr. Thomas Flnch said: the canal, possible Soviet involvement and the cancers of 10 terminal patients are "By the time she went to Dr. Buru;n, her national security interests, Panamania~ now in remission or regression. case was pretty hopeless. She'd had chemo- human rights and other factors involved 28628 EXTENSIONS OF REMARKS September 9, 1977 in this complex issue, Governor Reagan and self-executing 1! ratified by the Senate. to build a legation on one's own territory. offered two alternatives for discussion in If, on the other hand, the weight of the evi So, a bill was passed by Congress to author dence is for the other view-that the Con ize the Secretary of State to adjust the place of the proposed treaties. For those gress holds exclusive power over the disposal boundary between the Canal Zone and the weighing the arguments on this impor of territory and property-then Senate rati Republic of Panama in order to turn the tant issue, the prudent, no-nonsense fication is not enough. Implementing legis land for the legation building over to Pan views of Governor Reagan are a must. lation by the House of Representatives would ama. The text of his prepared statement be required. I believe that careful examina Ten years later, the Senate debated ap before the subcommittee on September 8, tion of legal cases as well as historical prece proval by Joint Resolution of an Executive follows: dent leads one to the inevitable conclusion Agreement to transfer some land and prop that Congress does hold exclusive power and erty in the Canal Zone to Panama. The very TESTIMONY BY HON. RoNALD REAGAN that implementing legislation will be needed question of whether this should be done Mr. Chairman and members of the sub in the case of the Panama Canal treaties. by treaty-requiring only Senate ratifica committee, thank you for inviting me to Now, the Executive branch may cite as evi- tion--or by Executive Agreemenrt--require appear before you this morning to testi!y. . dence to support its position the treaties we ing consent of both houses-was hotly de You are concerned, as I am, with Constitu entered into in the last century with anum bated. The measure was approved, under tional and other issues arising out or the ber of Indian tribes. In these treaties we ap scoring Congress' Article IV powers. proposed Panama Canal treaties, and I ap peared to be ceding land to the tribes without Early the next year, 1943, the House Com preciate this opportunity to share my views requiring implementing legislation. The prac mittee on Foreign Affairs held hearings on with you. tice was stopped altogether more than a cen the land transfer in question. Its report adds It is necessary first to comment on the tury a.go, with the passage of the Indian weight to the argument for requiring im Constitutional issue. Even though I am not Appropriations Act of 1872, but a closer look plementing legislation in the current case. a lawyer mysel!, I can appreciate the hours at the Indian land treaties shows they were It said, "Congressional a·pproval of the Exe of research lawyers put into these matters. very different from this proposal to turn over cutive commitments to Panama is sought In reading about the Panama Canal, its his U.S. property in the Canal Zone to a foreign in the form or legislation because there is tory and its operation, as well as its national government. involved (a) a disposition of property of and international significance, I round my The American Indian tribes have always the United States; and (b) an appropria sel! spending more and more of my time had a unique relationship with the federal tion of funds, both requiring an exercise of studying the legal cases and opinions which government and have not been considered the legislative power, independently of the bear on the Canal and our relations with foreign nations. When lands were turned treaty-making power. Article IV of the Con Panama. There is a plentiful supply of logic over, the tribes were usually given "right of stitution provides that "The Congress shall and common sense in those cases and occupancy", with ultimate authority over the have power to dispose of ... the territory or opinions. lands still to be held by the federal govern ot=..e::- property belonging to the United The Executive branch argues that the ment. Even in cases where the treaties gave States'." · President's treaty-making powers under the the tribes the land in fee simple, the gov Our 1955 treaty with Panama provided for Constitution are enough to dispose of U.S. ernment reserved the right of eminent do transfer of real property, stating that some territory and property without any imple main and sometimes the right to hold veto would be transferred immediately and the menting legislation by the Congress; that power over transfer of the land to third rest with Congressional authorization. Dur transfers of property as specified in a treaty parties. Neither of these reservations would ing the hearings on the treaty, however, a become sel!-executing once the Senate rati apply, of course, when turning property over State Department representative testified fies the treaty. Historically, Congress has to a foreign nation, such as Panama. that the legislation would be needed in or held to a different view, though there have Other arguments will be put forward to der to implement the transfer of all the been enough ambiguities over the years to support the contention that implementing property in que!;tion. revive the argument with each new cause. legislation is not needed in order to dispose A number of Supreme Court decisions over At a glance, the United States Constitu of our property in the Canal Zone. One the years has reaffirmed the exclusive nature tion does seem to be ambiguous about the may have to do with treaties which invol of Congress' power to dispose of territory and matter: ved boundary claims. The United States has property under Article IV of the Constitu Article II, Section 2, Clause 2 gives the entered into boundary settlement treaties tion. President authority to negotiate and enter several times in its history, swapping pieces In the face of all the historical and legal into treaties. of land here and there without any imple evidence indicating that implementing legis Article VI, Section 2 declares that treaties menting legislation from Congress. Again, on lation from the Congress will be necessary are the supreme law of the land. closer examination, each settlement of a in the case of U.S. property in the Canal But, the Constitution also places a Con boundary dispute turns out to have been a Zone, it is hard for me to believe that the gressional act and a treaty on the same foot matter of recognition of the rightness of the Executive branch would want to circumvent ing. claim of our nation or the other one in the Congress' rights and responsib111ties in Article IV, Section 3, Clause 2 grants "The volved, and not a matter of outright cession this matter. If our foreign policy is to be Congress", meaning both houses, the power of territory. fully effective, cooperation of the Congress to dispose or territory and other federal prop The case of the Ryukyu Islands might be is a vital ingredient. erty. cited, too. We turned these islands back to OTHER FACTORS Treaties, of course, must not be in viola Japan in 1972, following ratific81tion of tion of the Constitution which grants various The Constitutional issue Is of great Im a treaty without implementing legisl.ation. portance, but so is the security of the United powers to the President, the Congress and In the 1951 peace treaty with Japan, how the States. All of these, at face value, are States and the Western Hemisphere. ever, the Japanese did not renounce their I have not yet received a copy of the unlimited, but in reality they are subject to right or title to the Ryukyus, as they did the limitations imposed by other sections of treaty draft to read, but members of my staff to certain other pieces of terri tory, so that and I have been briefed on its contents by the Constitution, in the form of specific pro when the time came to discuss the matter hibitions, or by the fact that the Constitu Ambassadors Bunker and Linowltz and other further there was no serious question of members or the U.S. neogtiating team. I be tion vests concurrent or exclusive power in ownership. certain units of the government. lieve the ambassadors worked earnestly and So much for the flaws in the arguments hard under difficult circumstances and there Whether the proposed Panama Canal treaty that are put forth to support the idea that needs implementing legislation in order to are some commendable ideas contained in the new Panama Canal treaties can be used the proposed treaties. But, I also believe they dispose or U.S. property lies in this question to turn over U.S. property without special of "concurrent" versus "exclusive" power. have an overriding-indeed a fatal flaw. They implementing legislation. The strongest evi proceed from a false premise, that we can In his recent paper titled "The Treaty dence to support the opposite assertion is expect reliable, impartial, trouble-free, se Power and Congressional Power in Conflict: the past record of disposal of U.S. property cure operations of the Canal in the future by Cession of United States Property in the in the Canal Zone itself. relinquishing the rights we acquired in the Canal Zone to Panama", Kenneth Merin, Leg I have read thousands of words of news 1903 treaty. islative Attorney of the American Law Divi paper and magazine copy and heard many In that treaty we acquired the rights of sion of the Library of Congress, makes the television and radio broadcasts about the sovereignty over the Canal Zone, to the ex point that, "The Constitutional issue is not, Panama Canal treaty issue, but have seen clusion of the exercise of such rights by the or should not be, involvement of the House or heard nothing about these cases in the Republic of Panama. . of Representatives in treaty negotiations", news media. Yet, their significance cannot We did not acquire the Canal Zone as we but " ... whether, by virtue of Article IV, be underestimated in establishing that legi did the Louisiana Purchase or Alaska. Many Congress exercises exclusive or concurrent lation will be required of Congress because people think we did, but the fact is that power over the disposal of territory and prop. of its exclusive power to dispose of territory the Canal Zone is unique. erty." and property. It seems clear, from the language of the Presumably, 1! it could be proved that con Back in 1932, our government wanted to 1903 treaty, that the intention of our govern gress' power is concurrent, the proposed build a new legation 'building on land inside ment was to acquire a firm, unshakable legal Panama Canal treaties would be complete the Canal Zone. It is not proper, of course basis for bullding, operating and defending September 9, 1977 EXTENSIONS OF REMARKS 28629 the Canal. The language that says we shall tion. We have shown a reluctance to meet the to destab111ze the security of the Hemisphere act "as if we were sovereign" underscores the responsib111ty of free world leadership, even and cause a global whirlwind of unfavorable point, for we did not acquire the Canal Zone on occasion to abandon allies. press aimed at us-not because we didn't for the purpose of extracting minerals, tilling We have been told the Canal is declining ratify the treaty but because that is their the soil or establishing a mercantile colony. in terms of mmta.ry importance and yet all normal procedure where we are concerned. It was a single-purpose enterprise. But, the but a handful of our navy ships can transit LATIN AMERICA important thing to remember is that only the Canal. The great bulk of material bound The treaty advocates say !allure to ratify one nation can exert sovereign rlght,S over a for our forces in Vietnam went by way of and implement these treaties will harm our given piece of land at one time, and the 1903 the Canal. And who can say what shape our relations with all of Latin America. Is it treaty made it clear that we would do so in navy wlll take 20 or 30 years from now? It possible they believe they are betting on a the Canal Zone and that the Republic of may very well consist in this missile age of sure thing? Historically, our Latin American Panama would not. small, fast ships relying on quick accessi neighbors have felt the need to be somewhat To this day, it is those rights of sovereignty blllty from one ocean to another. on guard against a United States which to which undergird our ab111ty to operate and President Carter cites a statement by the them is the "Colossus of the North." A nat defend the Canal. We cannot be kicked out Joint Chiefs of Staff that the treaty is satis ural reaction has been to vote as a group on summarily on the whim of some Panamanian factory in terms of our defense needs. I mean inter-American matters in international government. no disrespect to these fine men. Yet, in a forums. This does not mean, however, that Once those rights are removed-and they recent letter to the President, four former all Latin American nations have identical will be removed immediately if the new Chiefs of Naval Operations-now retired and, interests or think alike. As a matter of fact, treaties become effective--there is nothing to therefore, free to speak out on this issue- a surprising number have privately expressed prevent a Panamanian regime from deciding underscored the importance of our keeping concern about our possible withdrawal from one day to nationalize the canal and to de active control of the Canal. Admirals Arleigh the canal. mand that we leave immediately. That would Burke, Thomas Moorer, Robert Carney and Frankly, I believe we can question not present us with the very thing the treaty George Anderson said, in part, "As long as only the warnings about possible deteriora advocates say we want to avoid; confronta most of the world's combatant and com tion in our relations with Latin America if tion, or its alternative, unceremonious with mercial tonnage can transit through the we don't ratify the treaty but also the glow drawal in the face of an arbitrary demand. Canal, it offers inestimable strategic advan ing promises of a new era if we do. For more than 60 years we have operated tages to the U.S., giving us maximum strength The fact is we do not now have a coherent the Panama Canal efficiently, impartially at minimum cost. policy toward our Western Hemisphere and on a not-for-profit basis. The nations of "By contrast, the Panama Canal, under neighbors. And we should because, over the the Western Hemisphere have come to rely on control of a potential adversary, would be next few decades, our continued prosperity, our stable presence there to make sure that come an immediate crucial problem and possibly even our survival will be closely their commerce would get through un prove a serious weakness in the overall U.S. linked to that of our neighbors within this hindered. defense capablllty, with enormous conse Hemisphere. I do not believe these treaties We cannot be certain, if these new treaties quences for evil." are a substitute for such a policy. I do be go into operation, that key personnel now Our continued presence at the Canal in lleve that the U.S. negotiating from strength operating the Canal will not leave a great hibits potential adventurers from trying to and not meekly yielding legitimate rights deal sooner than expected, thus bringing into make international trouble there far better and responsib111ties out of a desire to avoid question the smooth operation of the Canal. than would a piece of paper granting us the unpleasantness, can be truly helpful to the We cannot be certain that, as the American right to return after we had once departed. people of Panama and to all the Hemisphere. presence withdraws from the Canal Zone, It is no secret that the Soviet U::.ion Some of our neighbors need air we are in a new demands for accelerated withdrawal wlll believes control over some 16 vital sea lane position to give. With others, the need is not be made under threat of violence. We "choke points" means dominance of the for increased technology and trade; and with cannot be certain that outside influences world's oceans. Our presence at one of the some, unhindered access to capital for hostile to Hemispheric security wlll not make busiest and most important of those "choke needed development. Once our government their presence felt much greater than before points" is a definite deterrent. recognizes that we must all sink or swim in Panama. We cannot be certain that Ameri There is another factor at work which together maybe we'll stop some of our self cans operating the Canal will not be harassed could be harmful to the security of the defeating practices. It is self-defeating to by an unstable and power-hungry dictator. Hemisphere because it could further ques throttle a nation's ab111ty to obtain capital Fidel Castro, whose interest in exporting tion our wlllingness to maintain a leader because it doesn't run its internal politics revolution is well known, has made quite a ship role. Let us remember that, for much precisely as we would like. It is self-defeating show of his friendship for the current mili of the time, whlle these treaties were being to keep a neighbor from buying weapons tary regime in Panama. And, just this sum negotiated, we were doing so (especially in for its police force because someone in Wash mer, a delegation from the Soviet Union the last two years) under repeated threats ington sees terrorists as mere political dis visited Panama to look into trade, investigate of violence. True, the threats slackened off sidents. Thus, we encourage more terrorism possible plant locations and even the pos this year, possibly because General Torrijos and hurt a nation's chances for economic siblllty of opening a bank in Panama. It saw victory ahead. Some may believe the recovery. should never surprise us that whenever the threats were a bluff, but the fact remains Our neighbors in Latin America ask that United States withdraws its presence or its that we did continue to negotiate and, ap we learn enough about them to have some strong interest from any area, the Soviets parently, made concessions in the face of understanding. Sometimes, their problems are ready, wllling and often able to exploit threats. The President seemed anxious to are similar, sometimes different but each the situation. Oan we believe that the Pan speed up and bring the matter to a conclu nation is deserving of understanding. ama Canal is any exception? sion in spite of his previous declarations What especially do the Panamanians want? Although the proposed second treaty would that he would never relinquish effective con That isn't an easy question to answer since continue indefinitely beyond the expiration trol of the Canal. there is no elected government, nor can we of the first one in the year 2000, the question If we accede to a treaty under such cir be sure a plebiscite of the people on the must be asked, does it really provide what it cumstances, will this mark the end of fur treaties would give an accurate answer in says it wlll, which is the unilateral ab111ty of ther demands? If there are, indeed, radical view of the nature of the government. the United States to step in to defend the guerillas in Panama (as we are told) ready We are left with some educated guesses Canal if its neutrality is threatened? to blow up the Canal if we don't sign a about the wants of the Panamanian people. I believe we wlll make a very grave mis treaty, what assurance do we have that they Thanks in large part to the Canal, the Pana take if we let ourselves be inveighed into will be satisfied with the terms of these manins have the highest per-capita income debating what the treaties do or do not say. treaties? Already, the government-sponsored in Central America and the third and fourth Yes, on paper, we are told we have the right student federation in Panama has issued a hdghest in all of Latin America. But their to step in-even after we have turned over manifesto supporting the treaties, but also economy is near bankruptcy. They are control and removed our forces. But will we? indicating that "the struggle will continue" plagued by inflation and unemployment we are told by the treaty advocates, there so long as there is any American presence at while natural resources lle undeveloped. will be unpleasantness and trouble if we the Canal. If they should press Torrijos to Contrary to what has been implied about don't accept these treaties. The same people ignore these treaties, would we not hear the my own position, I do not believe that in then assure us we can march back in if there same arguments from the same people for rejecting these treaties we should simply is trouble. But once we have said, in effect, giving in to those new demands that we demand the status quo and not seek answers "We don't want trouble; we'll give up the are hearing today? to problems regarddng our relations with the Canal," have we not also sa.id, "If the gov Whether or not these treaties ever go into people of Panama. ernment of Panama, encouraged by leftist effect, we can expect trouble from leftist ele Early in this century, we realized our allles, plays fast and loose with the treaty," ments in Panama and elsewhere. Yes, !allure dream of a waterway connecting the two we'll decide-since we are giving it up any to ratify the treaty will offer an excuse for great oceans. Panama, then a neglected prov way-"why bother?" demonstrations and riots in Panama and ince of Colombia, also realized a dream-to I don't believe such a concern is un very possibly in the U.S. And, behind the be free and independent. The two dreams justified, given the recent history of our na- scenes, the Russian Bear will do all it can were inter-related. Many in our country 28630 EXTENSIONS OF REMARKS September 9, 19·77 thought the Canal should be in Nicaragua. for all the world's shipping and a guarantee SAVING FREE ENTERPRISE The Panamanians knew their only chance of security for the Western Hemisphere. to have independence and prosperity lay in HUMAN RIGHTS HON. JAMES ABDNOR the Canal being built in Panama. And so it In conclusion, I would like to touch on the was that Panama ratified the Hay-Bunau subject of human rights. The concept of in OF SOUTH DAKOTA Varilla Treaty months before it was ratified dividual human freedom is deeply ingrained IN THE HOUSE OF REPRESENTATIVES by our own government. in us here in the United States. Though I be Friday, September 9, 1977 We have nothing to be ashamed of and lieve the best way to help human rights much to be proud of. We created one of the flourish elsewhere is to set the best possible Mr. ABDNO'R. Mr. Speaker, I com great wonders of the world and it is doubt example in our own country, I realize that mend to attention of my colleagues an ful any other nation could have done so. some idealists believe we should be more as other in a series of prize winning essays More than that, however, we have managed sertive in getting others to follow our ex from a contest sponsored annually by the the canal fairly for all nations at no profit ample. Now that a. high standard of sen to ourselves and with great economic bene sitivity to human rights has become a corner South Dakota Stockgrowers Association fit to Panama. Not only did we deal fairly stone of our government's policy, I think it is on "How the Free Enterprise System with the governments of Panama and Co not only fair but mandatory to raise the Can Be Saved." These are the ideas of lombia, we also bought every piece of pri question with regards to the repressive re Doris Powers of rural Kimball, S.Dak., a vately owned land in the Canal Zone in fee gime in Panama with which we have been sophomore at Kimball High School. simple from the individual owners. And may negotiating. And, I do not accept our nego Her ideas follow: I point out the Canal Zone is not flanked tiators' effort to characterize it as merely How THE FREE ENTERPRISE SYSTEM CAN BE by Berlin Walls. The people of Panama can authoritarian. go in and out of the Zone freely at all times. Human rights criticism, public and pri SAVED But times change and the Panamanians vate, has been leveled at a number of nations (By Doris Powers) have a growing feeling of nationalism. We, in the Western Hemisphere which have al Yes, the free enterprise system is our way on the other hand, cannot weaken our abil ways been friendly toward us, yet I cannot of life. It is an economic system that is sec ity to provide security for our nation and recall a single word of criticism by any rep ond to none and the envy of the world. It 1s the entire Western Hemisphere. Can ways resentative of our governmeQ.t toward Pan an economic system that has given us the be found to satisfy some of their national ama Ln this regard. Yet, Freedom House, highest standard of living of any country aspirations without compromising our abil which is recognized internationally as an in the world. However, like anything that is ity to meet security requirements? impartial monitor of the status of human great, it is not perfect. Therefore, one must Though I believe that the basic flaw of freedom, rates Panama as one of 67 nations ask the question how can the free enterprise the proposed treaties requires that they not in the world that is "not free." They rate 42 system be saved? be ratified, there are alternatives we should as "free" and 48 as "partly free." In its an I would like to reflect on some of the criti examine. nual survey, Freedom House rates political cal issues which are now threatening our Let us explore, for example, broadening rights on a scale of one to seven, with seven free enterprise system. Issues that must be participation in Canal policy making. The being least free. They rate Panama as a decided 1f we are to preserve the freedom proposed basic treaty calls for a. governing seven. They rate civil rights on a similar that our ancestors fought for over 200 years. board with five U.S. and four Panamanian scale, and Panama receives a six. The decisions that must be reached by our directors till the year 2000, when it expires. Documents have been widely circulated in congress in the near future on these criti An alternative to consider would be a board this country, with names, dates, places, and cal issues are-whether a free economy and comprised of a. group of permanent U.S. seats, details of alleged violations of human rights private institutions that are a necessary part another group of permanent Panamanian by the regime in Panama. I, personally, have of a free economy to survive; or whether it seats and a. third group of term seats to be received a letter from a Panamanian busi will be replaced by government controlled rotated among Canal-using nations. An nessman who was forced, at gunpoint, from economy and usurped federal bureaucracies other possibility might be to have that third his automobile some months ago and sent until free enterprise is ellminated in our group made up of representatives of our into exile because he had dissented. nation. neighbors, the nations of North and South can we afford a double standard in this These trends of government controls and and Central America. In the case of the first most fundamental of areas? I don't think so, the federal bureaucracies must be reversed alternative, the international directors might for to do so says to the world that we are if we are to save our tree enterprise system. - 1le drawn from a Panama Canal Users Asso cynics, using the issue of human rights only we cannot continue to cripple our private ciation to be set up at the time the plan is as a tactic to produce specific political re sector in the manner that the legislative activated. Nations paying dues into such an sults. Worse, it may say to those who hold bodies of this nation have been doing in association for the benefit of Canal improve out hope of reduced oppression and ulti recent years unless we want our free econ ments might have as one privilege discounts mately the restoration of freedom that omy destroyed. The question is will our on tolls under a revised and increased toll Americans are, when you get right down to Congress change its present direction which system designed to operate the Canal in the it, hypocrites. The recent history of our ne will destroy our free enterprise system? The black. gotiations with the Panamanian dictator only way that Congress is going to reverse its The proposed treaties call for an increase of present trend is by the outcry of their con the money we pay Panama. annually from ship does nothing to dispell such concerns. $2.3 m1111on to an a. verage income from Canal so, I leave you with this question: can we stituents, that is you and me. 1 separate Canal negotiations from human Now let's look at some serious problems operations of as much as $80 ,m1llion. There facing us-let's get to the facts behind the is no assurance this would benefit the Pan rights when those rights as we know them amanian people. A modernization program are severely limited in Panama? problems-let's see the causes so we can CONCLUSION determine what must be done. The solutions the Terminal Lake Third Lock plan could will not be easy but we can take the proper definitely help the people. It would be ap Finally, what conclusions are to be drawn course to correct the problems. proximately 10 years in the building and cost about these treaties? Let me reiterate that: When trying to solve our national prob b'etween one and two billion dollars. We The Panama Canal is vital to our security letns we must consider world conditions and could make certain that Panamanian workers and that of the Western Hemisphere; and contractors were engaged extensively in problems. Our world population is estimated We provide the one sure guarantee that at four billlon people and growing rapidly. the program which would directly benefit the the commerce of the world will have con In the next twenty-five years the world people and the economy of Panama. tinued access to this waterway; Such a. modernization of the Canal would population will almost double again. About The rights of sovereignty we hold in the one-third of the present population live with make it capable of handling all but a possible Canal Zone are the foundation of our ab1lity few Super Tankers. This could have impor the highest standard of living while the to remain there to operate and defend the remainingt two-thirds live as their ancestors tant implications for the cost of moving Canal; Alaskan oil to Gulf Coast refineries. Then, have lived for generation after generation in The proposed treaties relinquish those fuedal misery. This large proportion of pop too, increased speed of transit and general rights and do not provide adequate guaran tramc would mean increased toll revenues ulation living in what we call underdevel tees against future threats to the canal; oped countries creates a truly explosive situ which could further beneft t Panama. through Alternatives should be sought which rec a. sharing formula. ation. ognize the aspirations of the Panamanian Food production is another supply prob These are two alternatives for discussion. people, without compromising our ab11ity to lem facing us in the future. We are fortu I'm sure there are more available for a United meet security requirements. nate that our country is blessed with the States willing to do what it can for a neigh Thus, the treaties as proposed should not most productive agricultural economy in the bor without abdicating its own responsib111ty be ratified. Furthermore, it seetns clear from world. The present and continued popula to permanently provide an open waterway legal opinions and historical precedent that tion explosion of the world with knowledge the ratification process will require imple of starvation in large portions of the world's 1 Source: Nicholas Ardito Barletta, Minis menting legislation by the Congress. population poses some critical issues to be ter of Planning and Economic Policy, Repub• Thank you again for inviting me to appear solved. lie of Panama, August 10, 1977 speech. before you. we are an aware of the energy supply September 9, 1977 EXTENSIONS OF REMARKS 28631 problem which is front page news. Are you our economy going again. The single most it to my colleagues and to those who read aware of the growing shortages in other im important thing to do is in restoring the the CONGRESSIONAL RECORD as a concise portant material in our economy-materials health of our economy is to put the word and objective analysis on a subject that such as steel, iron ore, aluminum, copper, "profit" back in our vocabulary as a descrip chromium, nickle, timber and phosphates? tion of an essential, respected and absolute rarely receives rational treatment: We are all aware of OPEC and its effects ly vital component of national economy. MAKING THE RUSSIANS SEEM 10 FEET TALL on the industrialized nations. But are you In the last 25 years we have witnessed a (By Fred Warner Neal) aware of countries considering similar ca.r steady decline in the share of our national Harvard historian Richard Pipes has joined tels? Many countries having ma.terials such income that has been earned a.s profit. The those Americans who General Eisenhower a.s iron ore, bauxite, copper, mercury, and tra.gic performance by some of our political once described as prone to believe all Rus phosphates are busy organizing their own leaders attacking the profits of individuals sians are ten feet tall. cartels patterned after OPEC. These develop and companies for their own political gains. Pipes' name became well known as chair ing countries want a better way of life and Companies and individuals all must show man of Team B, which discredited the CIA they visualize raw material cartels like OPEC a profit if they are to exist and to invest estimate of Soviet strategic objectives. He as their weapon to get a chunk of the stand capital back in our economy to create new has captured press attention in recent ar ard of living that has been achieved by the jobs, expansion and modernization. ticles by informing all who can read "why industrial world. If we want to have a healthy economy in the Soviet Union thinks it could fight and Let's look at some of our domestic prob our free enterprise system we must solve win a nuclear war." (Commentary, July lems and their solutions. Inflation is one of these probJems. 1977; Washington Post, July 3; Washington these problems. The old saying, "You can't First, we have the highest rate of taxation Star, July 24). He deserves an answer. take it with you" does not hold water today, on capital gains of any country in the world Prof. Pipes' position is typical of those because it's already gone before you are. and the lowest rate of investment in the who believe Soviet m111tary writers enun When you aren't buying something new, private sector of any of the free market in ciate communist gospel. Of course, leading you are saving money. If a lot of people dustrial countries. Soviet m111tary figures write about the ne aren't buying now-You have a recession on Second, the appetite of the Federal gov cessity for the Soviet armed forces to be able top of inflation. ernment for more and more funds to finance to fight and win a nuclear war. Any mmtary Recession and inflation are very much re its monstrous deficits have monopolized a figure in any nation who didn't believe his lated and no long run solutions can ignore giant share of the credit available in the country's armed forces must be able to fight either problem. Both must be solved if we nation. and win any kind of war ought to be fired. are to have a sound economy. Let's look at Third, scarcely a year goes by without the The armed forces are important in the the underlying factors Which accelerate Congress passing legislation to establish these two problems. Soviet Union, but they, as all else in the another new massive Federal RegJUlatory U.S.S.R., are and always have been subordi There is one cause of inflation in our Agency; and very few State Legislatures can country a.s well a.s two other factors of some nate to polltical rule by the civ111ans in the resist the same temptation! Communist party. We would have much to what lesser importance. The major cause is Fourth, tax structure and policy of our our continuing long-term deficits in our concern us if the Soviet Union were a m111- nation is another reason that is putting the tary dictatorship, which it is not. Federal Budget. In the las·t ten years the brakes on our economic progress. Our polit Federal Government has borrowed over 245 ical leaders have for years adopted a phi The official position of the party on nuclear billion dollars to cover deficits in the Fed losophy of holding down taxes by the low war is clear and absolute, as enunciated and eral Budget which has increased the infla and medium income taxpayer and making refined over a period of 20 years. It is that a tionary pressures on all of us. it up by charging high taxes to corporations nuclear war must be avoided at all costs. In other words, only Congress can turn and higher income individuals. Soviet civillan leaders and their scientists off inflation by living within a balanced These are some of the problems that need know a nuclear war would destroy them as bud~t and not a deficit one. We think of to be addressed to get our economy moving well as the hopes of the Soviet Communists inflation in terms of rising prices, but to un again, to preserve our private sector, to en for achieving a Communist world. derstand inflation properly and to get it un able private enterprise to fulfill its tradition How, then, does one explain statements der control, we have to understand that in al role in our society. emanating from the Soviet mllltary estab fiation is really manifested in a decrease in The situation is serious and make no mis lishment? It is not difficult. Soviet m111ta.ry the value of money. take about it. If the private sector is unable leaders think in heavy-handed, traditional Inflation is caused by political figures who to raise the capital necessary for expansion mllltary terms, often out of touch with re vote to spend more than they vote to raise and modernization to provide the goods and ality postulated by their own scientists. For through taxation. It is a good way to get services the American people need and de all their claims of being able to fight and win elected but the consequences on the Ameri sire-then government will be called upon a nuclear war, they do not-at least pub can economy are catastrophic. Inflation is a to provide capital and own the fac111ties. licly-face up to what such a war would social disease caused by political excesses and When government owns the means of pro mean; consequently they do not tell us how like most social diseases, those who cause it duction, you are well down the road that they would "win" or what "winning" would are reluctant to admit it. Karl Marx proposed some years ago. mean. Our antitrust laws are built-in protection Furthermore, Soviet mllltary leaders even to safeguard our free enterprise system. But more than civ111ans have a distrust of "the there are two extremely important areas of imperialists," even deeper than our distrust our national economy where our antitrust of Communists. They are not persuaded that laws have no jurisdiction and these are two MAKING THE RUSSIANS SEEM the United States would never launch a first supporting causes of inflation. 10 FEET TALL strike against them. Also, there is a consum The first area is our nation's labor laws mate fear of the "German threat" which cost which exempt unions from the requirements 20 million Russian dead in WW II. And, addi of our anti-monopoly legislation, even HON. JAMES P. (JIM) JOHNSON tionally, the Soviet Union sees threats not though the cost of labor is between 75 and 90 OF COLORADO only from the West, but also from China. percent of the price of all goods and services IN THE HOUSE OF REPRESENTATIVES Professor Pipes takes exception to The produced in the U.S.A. For example, it is Star's reference to his "mind-set." It is an crimi-nal under our laws for General Motors, Friday, September 9, 1977 essential and valid point which The Star Ford and Chrysler to join together to force Mr. JOHNSON of Colorado. Mr. makes. It is the "mind-set" of the Cold War. up the prices of automobiles but it is per Speaker, the current effort to rekindle I know of no way in which reason, facts or fectly legal for employees of these three com the cold war by those who measure pa anything else can influence people who have panies to join together to do the same thing this mind set. It is not to question either and they have been in the habit of doing triotism in terms of how much blood their motives or their intelllgence to say that this every three years. This type of inflation and treasure can be expended, and they are bound by an ideological View as rigid will never be corrected until our elected equate love of country with bombast and as that which binds the Soviet leadership. represent!l.tives in Congress are willing to militarism, is becoming more and more And this inevitably distorts the way they look squarely face this problem. tiresome. Those of us who know better at things and the deductions they draw from Another area untouched by our antitrust must not let the noisy fearmongers get what they think they see. laws is the cartels being organized in other too far ahead in their public relations Professor Pipes is a member of an organi countries beyond the reach of our laws. The campaign, lest we find that policy fol zation known as the Committee on the Pres impact of the on cartel has been substantial ent Danger-the present danger being that and threatens to get worse. lows demagoguery in lock step. of Soviet mllltary aggression. More than 25 The other major economic problem facing Recently, Mr. Fred W. Neal wrote an years ago I worked as an assistant to presi our economy is recession. We must deter article for the Washington Star entitled, dent James B. Conant of Harvard and to for mine what has caused a slow down in our "Making the Russians seem ten feet tall." mer Undersecretary of the Army Tracy Voor economy a,nd what needs to be done to get It is clear and to the point. I recommend hees, who headed a group also known a.s the 28632 EXTENSIONS OF REMARKS September 9, 19·77 Committee on the · Present Danger. The developing nuclear weapons as preparation where there was none, refusing a compre "present danger" then, too, was Soviet mill for an attack; and Soviet policy toward Ger hensive test ban and introducing MIRV to tary aggression. many as an effort to take over Western overcome a nonexistent ABM. Most of these What did the Committee on the Present Europe. American policies were 111-advised and in Danger in the 1950s see as evidence? They These fears proved to be without founda fact left us with less security than formerly. citectvSOviet ideology as demanding Soviet tion. Nevertheless, they led the United States In short, the deductions were faulty. They wo:rld domination; the war in Korea as a step into a vast military expansion, introducing resulted from a "mind-set." It should give toward achieving Lt; Moscow's insistence on nuclear submarines, seeing a missile gap us pause to think.
