September 29, 1983 EXTENSIONS OF REMARKS 26539 EXTENSIONS OF REMARKS DEFICITS BLOCK ECONOMIC lion are allowed to occur. If, in 5 years' to bring both sides to this state of pa­ RECOVERY time, we amass an additional $1 tril­ ralysis. lion to the national debt, on top of the It is imperative that something· be HON. LES AuCOIN current accumulated $1 trillion debt, done to break through. There are OF OREGON neither of those things will occur. Nei­ dogmas on both sides of the aisle IN THE HOUSE OF REPRESENTATIVES ther of those things will occur if Gov­ which must be broken. Something has ernment borrowing absorbs 78 percent to give. Wednesday, September 28, 1983 of the total savings pool of this coun­ But if we can form a Presidential e Mr. AuCOIN. Mr. Speaker, as I try, which is where we will be if our commission to deal with the impossi­ travel through the First Congressional deficits grow unabated. ble task of social security, and we did, District in Oregon, the question most You cannot help your fellow man and if we can form a Presidential com­ often asked by millworkers in Toledo, and you cannot form capital to get the mission to deal with the intractable by fishermen in Astoria, and by small business machinery of this country and vexing problems of Central Amer­ businessmen in Beaverton is this, Is going if debt service alone becomes ica, and we have, and if we can form a the recovery going to be a strong one, one of the major items in the Federal Presidential commission to deal with is it going to be sustainable, and is it budget. And neither of those things strategic forces-the Scowcroft Com­ one that can bring us out of one of the will happen if interest rates destroy mission-which we have done, then it deepest economic holes we have been the principal source of wealth needed seems to me there is an argument for in for decades? to make this country the kind of socie­ using this secret weapon on the most When we look at the statistics of ty I think we all want it to be. This is critical problem facing not only the what we have been through in terms why I feel it is so important for re­ domestic structure of this Nation's of bank failures, financial institutions sponsible Members of both parties to economy and strength, but also, ulti­ which have been merged, jobs which join in an effort to bring our fiscal mately, its foreign strength as well. have been lost, some of which, frankly, policy under control. If we fail in this We should be able to bring the lead­ will never come back, I think we have effort, or even worse if we continue on ership together from both parties, in paid a very dear price to reach this our present course as if there were no the executive branch and on Capitol point at which we might just be able problem, we will be courting a finan­ Hill, and have a national commission to see economic recovery. cial and economic crisis which will composed in a way that represents bal­ Those who have survived the reces­ shred the social fabric of this country, ance to come forward with a deficit re­ sion have every right to expect a re­ making the riots of the 1960's and duction package which will be bal­ covery that rewards them for one of 1970's look like small potatoes. anced and, most importantly, will com­ the sharpest sacrifices the economy And what stands in the way of deci­ mand the support necessary to pass has been put through in decades. And sive action which can reduce the size both the House and the Senate. I believe the recovery can be sus­ of the deficits which loom on the hori­ Some would say that this approach tained. I believe the policymakers in zon? There has certainly been no lack circumvents the committee system and Congress and in the executive branch of ideas as to how the deficit can best the budget process established to deal owe those who have survived by being be reduced. with this matter. as skillful as they have during this re­ cession a recovery which rewards their My conservative friends suggest that I would answer, first of all, that this enterprise and nurtures those who are we only need to cut nondefense discre­ simply would not be the case. Any set picking up the pieces now and are tionary spending further in order to of legislative recommendations pro­ trying to put it all back together bring the budget into balance, al­ posed by such a commission would again. though with the magnitude of the come before the Congress and be re­ deficits which we face you could shut ferred to the appropriate committees. But to be quite frank, Mr. Speaker, down every function of the Federal While significant alterations could there is one thing standing in the way Government with the exception of the upset the balance struck by such a of a prolonged and sustained economic Department of Defense and the Social commission, the Congress would still recovery-deficits. Structural deficits, Security Administration and still face have the opportunity to work its will. deficits which are estimated, conserv­ a $20 to $30 billion deficit. Some would atively, at $200 billion. Not only this Second, I would say that the prob­ even advocate amending the Constitu­ lem we face is extraordinary in nature. year, but next year, the year after tion to require balanced budgets as if that, and, in David Stockman's words, Its solution requires extraordinary by magic that would provide the votes steps be taken. as far forward into the future as the to pass legislation which will cut these eye can see. These Federal budget deficits. I feel a solution to this is critical and deficits have driven up interest rates, I am alarmed by the prospect that the which have in turn devasted the auto­ My liberal friends, on the other inertia which has set in will continue. mobile industry, the housing industry, hand, similarly refuse to consider This is why, today, I am introducing a the wood products industry, and other changes in entitlement programs joint resolution setting up such a com­ credit sensitive businesses. which will be necessary to provide the mission. Patterned after the National This is a problem which knows no substantial savings needed to reduce Commission on Social Security political bounds. It does not matter the deficit. There are still too many Reform, the National Commission for whether you are a Republican or a sacred cows, despite substantial budget a Responsible Budget calls upon the Democrat. It does not matter whether cuts, in the area of domestic spending. President, the Senate majority leader, your world revolves around capital for­ What we have on our hands is a and the Speaker of the House to nomi­ mation or whether it revolves around state of paralysis, legislative gridlock, nate a 15-member commission charged providing social services to help the in which the political muscle of vari­ with reviewing all elements of fiscal needy. Neither of those things will ous factions within both political par­ and monetary policy with particular happen if budget deficits of $200 bil- ties has been applied skillfully enough emphasis on the causes of the cyclical

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 26540 EXTENSIONS OF REMARKS September 29, 1983 and structural budget deficits and with advancing commercial development of lands and its grazing pastures, its scenic come forward with a set of options for the public lands, which Secretary Watt has vistas, its grand canyons and its majestic the President and the Congress. adopted as a mandate. mountains. But he chose, instead, to worry Most Western resource experts and Interi­ about whether he was becoming a political This is the most difficult task facing or officials agree that he has been a good liability to his president, and he measured Congress, and the most important. I administrator-he "runs a tight ship" and his performance by that yardstick. urge my colleagues who may be inter­ he deserves credit for launching an ambi­ Watt not only has burdened his president, ested in breaking this gridlock and set­ tious program to develop offshore oil and but he has burdened the nation and the ting up such a commission to contact gas resources. With a third of this nation's West as well. me and cosponsor this resolution. It is oil supply coming from abroad, it is clear He should now do his president a favor­ crucial that we act now.e that domestic energy development is in the and, coincidentally, as he sees it, he should public interest. do us all a favor-and resign immediately. But Watt has not been effective in his Let's get on with the serious business of pro­ THE DENVER POST: "JAMES overall administration of the public lands. tecting our public resources.e WATT SHOULD RESIGN" While he launched an ambitious restora­ tion of facilities in the national parks, he did so at the cost of a sharp reduction in the A BILL TO EXEMPT EUROBOND HON. PATRICIA SCHROEDER purchase of additional tracts. And in one INTEREST FROM TAXATION OF COLORADO case, his aides are advocating that those fa­ IN THE HOUSE OF REPRESENTATIVES cilities be made available-for the first time-to wild-game hunters licensed to kill HON. DOUG BARNARD, JR. Wednesday, September 28, 1983 in the national parks of Alaska. OF GEORGIA e Mrs. SCHROEDER. Mr. Speaker, Watt boasts that he has "not leased any the Denver Post has been one of wilderness" for mineral development, but IN THE HOUSE OF REPRESENTATIVES James Watt's most consistent support­ the fact is that House Democrats blocked Thursday, September 29, 1983 him from doing so. ers during his tour of duty as Interior Meanwhile, he has increasingly used his e Mr. BARNARD. Mr. Speaker, I am Secretary. Interior post as a pulpit to attack his critics, today introducing legislation that Today, the Denver Post had enough to orchestrate fundamentalist statements would amend the Internal Revenue and called for Mr. Watt to step down. on such highly-charged issues as abortion Code by permitting U.S. corporations The editorial, "The Record Is Clear: and to overstate his policies on Indian to sell so-called Eurobonds, on a tax­ James Watt Should Resign," Septem­ tribes. free basis, to foreign persons directly ber 28, 1983, follows: The secretary also found time to precipi­ from the United States. Present tax tate a selfish feud with Rep. Morris Udall, [From the Denver Post, Sept. 28, 1983] D-Ariz., one of the most powerful men in law requires that Eurobonds be sold THE RECORD Is CLEAR: JAMES WATT SHOULD Congress. only through Netherlands Antilles fi­ RESIGN Although his responsibility was to admin­ nance subsidiaries if the interest is to James Watt's big moment has arrived. ister the public resources, he approached be exempt from the 30-percent with­ He can now step to front and center, with the job as the regulator of a mythical corpo­ holding tax normally imposed on U.S. the klieg lights focused on his familiar pro­ ration, intent on dismantling a "monopoly" source income sent abroad. The ability file, and, after a long and laborious explana­ that unfairly held title to vast resources. to sell Eurobonds on a tax-free basis is tion that Qlaces primary blame with the Such rash conduct equates to a misuse of vitally important to hundreds of U.S. media, announce that he has resigned. the high trust delivered into his hands by Somehow, in the season of the Emmy's, President Reagan and the U.S. Senate in corporations as a relatively low-cost it's all appropriate. early 1981. method of raising capital in foreign It became clear several months ago that If Watt possessed some irreplaceable markets. Total Eurobond debt current­ Watt must be jettisoned from the Reagan genius in the governance of public deeds, ly stands at approximately $40 billion. cockpit if the 1984 mission were to be com­ our judgment might be different. But he The problem, Mr. Speaker, is that pleted. has posted no such record. His record as ad­ use of the Netherlands Antilles for is­ However, Watt refused to bow out without ministrator of our resources is, at best, me­ suing Eurobonds creates enormous tax applause. He needed the recognition of diocre. Additionally, there are his repeated, compliance problems for the Internal center stage. That, essentially, was Watt's tasteless forays into misguided humor. problem. The stage meant more to him than If all this were incidental, it might be dif­ Revenue Service and results in a huge the job. ferent. But it is intentional. In his many loss each year to the U.S. Treasury. For months, he has declared that he public appearances, Watt plainly has en­ This is because the Netherlands Antil­ would resign as interior secretary "when I joyed his self-perceived role as Reagan's les is the world's principal tax haven/ become a burden to President Reagan." court jester. While he clearly delighted in tax secrecy jurisdiction and is being It is interesting to note that the secre­ creating statements to taunt the press over utilized by U.S. residents and third tary's loyalties were with the political the past few months, he will now blame the country "treaty shoppers" to evade office, not with the public interest and not press for his demise. payment of billions of dollars of U.S. with his employees in the Deparment of In­ Watt knew where he was going on his terior. carefully mapped journey to resignation. taxes on income earned in the United Accordingly, what Watt had to say as a Unfortunately, he had little regard for the States. The Antilles tax haven status public official-whether he prefers John Interior Department in the process. While derives from its tax treaty with the Phillip Sousa to the Beach Boys or whether he was conducting his sideshow comedy act, United States-a treaty that our he feels freed or persecuted as a born-again there were legions of dedicated bureaucrats, Treasury Department has been trying, Christian-all were more important to him forest managers and park rangers who were unsuccessfully, to renegotiate for the than the task assigned him by President out in the field dutifully doing their jobs. past 3 years. The Antilles has been Reagan. His primary job was to serve as the They were managing the public resources able to resist efforts to tighten the chief trustee of our lands, and he crassly according to the laws of the land. manipulated that job into a personal politi­ James Watt lost sight of that duty. treaty against tax abusers precisely be­ cal soapbox for unrelated causes. He was busy on the lecture circuit, creat­ cause it is the only jurisdiction from After four years of pro-environmentalism ing the controversy that newspaper cartoon­ which Eurobonds can currently be by his predecessor, Cecil D. Andrus, Watt ists survive on. He was in the headlines. He sold on a tax-free basis to foreign pur­ assumed a mandate from President Rea­ was playing to the radical right. He was the chasers. If the United States termi­ gan's smashing election victories in the last remanant of the Reagan campaign. He nates the treaty, interest paid on Eur­ public-land states. He unwisely translated was loving every minute of it. obonds will be taxable and U.S. corpo­ Reagan's general-election promises into a Unfortunately, he also was the director of rations will be forced to pay unaccept­ policy sympathetic to commercial develop­ Interior, our ambassador-our represen­ ers of the public domain, and into a forum tive-in Washington. ably high and inflationary interest of personal political views. And he didn't represent us very effective­ rates to foreign purchasers of their But there were many reasons Westerners ly. debt. favored Ronald Reagan over Jimmy Carter, James Watt was entrusted with the custo­ The legislation I am introducing and few of those reasons had anything to do dy of America's coal reserves, its timber- today-which draws on extensive hear- September 29, 1983 EXTENSIONS OF REMARKS 26541 ings held into the tax haven issue by First. The U.S. Treasury could begin course. all income earned in the $300 the House Commerce. Consumer and to collect $1 billion or more a year in billion underground economy; and Monetary Affairs Subcommittee. revenue now lost because Antillean se­ Third, the Antilles has systematical­ which I chair-eliminates the need for crecy laws shield from the ms the ly failed to cooperate in a meaningful Antillean finance subsidiaries by per­ beneficial owners of taxable U.S. way with IRS and State law enforce­ mitting the direct sale of Eurobonds source income. Moreover, the U.S. ment authorities on tax fraud and tax on a tax-free basis. It would therefore Treasury should gain an additional evasion cases. permit the U.S. Government to cancel $120 million annually in tax reve­ U. COMPARISON WITH THE GIBBONS-CONABLE our tax treaty with the Antilles if se­ nues-the dollar value of tax credits BILL,ILR. 3025 crecy abuses-which shield the identi­ American corporations currently re­ ties of U.S. investors-are not ended ceive for taxes paid the Antillean Gov­ The essential difference is that my and it would result in the recapture of ernment by their Antillean finance bill would exempt only interest on an estimated billion dollars a year in subsidiaries. according to a leading Eurobonds. Gibbons-Conable would tax revenues. U.S. investment banking firm; exempt from taxation almost all types My legislation is distinguishable Second. Because the United States­ of interest payments. I believe my bill from a similar bill introduced by our Netherlands Antilles treaty already is preferable for the following reasons: colleagues SAM GIBBONS and BARBER exempts from taxation Eurobond in­ First. The Gibbons-Conable bill CoNABLE in that mine exempts from terest paid to foreigners. the amend­ would create a new tax loss to the U.S. taxation only interest on Eurobonds. ment would not cause any new tax loss Treasury of $91.5 million per year, Their legislation would create new cat­ to the U.S. Treasury; and based on 1980 data. The 1983 annual egories of tax-exempt U.S. source in­ Third. Direct issuance of Eurobond tax loss would likely be in excess of terest income. at an annual loss of ap­ by American corporations would elimi­ $100 million. Future tax losses could proximately $100 million. By contrast, nate the need for and significant costs be substantially greater. By contrast, my legislation creates no new tax ex­ of Antillean finance subsidiaries and my bill would result in no additional emptions. Their bill would produce a result in substantial savings to U.S. tax loss because Eurobond interest net tax gain of approximately $35 mil­ firms issuing such bonds. paid through Antillean finance sub­ lion. My bill would produce a net tax The Subcommittee on Commerce, sidiaries is already tax-exempt. gain of $120 million. Consumer. and Monetary Affairs, The overall effect of Gibbons-Con­ So that Members can fully under­ which I chair, has extensively investi­ able would be a net tax gain to the stand the need for this amendment to gated and on April 12 and 13, 1983, Treasury of approximately $35 mil­ the Internal Revenue Code, I am at­ held hearings into the use of the lion. By contrast, my bill would taching a brief memo describing the Netherlands Antilles for tax evasion produce a new tax gain of approxi­ problems the bill seeks to resolve and purposes by U.S. taxpayers and for­ mately $120 million. explaining the differences between eign persons subject to U.S. taxation. Second. By creating additional tax this bill and the Gibbons/Conable bill. The hearing record, including internal loopholes-for no valid public policy purposes-during a period of looming I. THE TAX COMPLIANCE PROBLEM IRS and Florida Department of Law The Treasury Department has been Enforcement documents, demon­ budget deficits, Gibbons-Conable will trying for the past 3 years to revise strates the following: attract substantial political and public the United States-Netherlands Antil­ First, $1 billion or more per year in opposition. By contrast, my bill does les income tax treaty so as to prevent taxes go uncollected because thou­ not carry such political liabilities. tax evasion on U.S. source income by sands of U.S. and foreign persons not Third. The administration's support Americans and by third country treaty resident in the Antilles use that off­ for a tax exemption for Eurobond in­ shoppers who invest here through shore country to escape taxes on U.S. terest seems to be predicated primarily "bearer share" Antillean corporations source income; on its desire to remove from the Neth­ and financial accounts. The negotia­ Second, as a result of three factors­ erlands Antilles, leverage over the tions have been stalemated for one the United States-Antilles tax treaty treaty negotiations. Gibbons-Conable overriding reason: Under the treaty, provisions eliminating or reducing does this but with the serious liability the Antilles is the only country in the withholding on U.S. source income; of creating new tax exemptions and world through which the finance sub­ the strict Antilles secrecy laws which losses. sidiaries of hundreds of major U.S. shield the indentities and financial These points are enumerated below corporations can sell Eurobonds to for­ transactions of beneficial owners of in more detail. eign persons on a tax-free basis. If U.S. source income; and, the low or TAX REVENUE LOSS UNDER GIBBONS·CONABLE Treasury were to cancel the treaty, zero rate of Antillean taxes on finan­ BILL the Internal Revenue Code would re­ cial transactions emanating from or IRS data for 1980 show that $96.1 quire the immediate imposition of a passing through the country-the million of tax revenue was collected by 30-percent withholding tax on the in­ Netherlands Antilles has become the IRS from U.S. paying agents on inter­ terest income from future sales of Eur­ world's largest tax haven jurisdiction est income paid to foreign persons. Of obonds and from the $40 billion cur­ for U.S. residents and treaty shoppers this amount, $78.5 million would have rently outstanding. This would shrink seeking to evade payment of U.S. been lost-not collected-if Gibbons­ the Eurobond market-a major source taxes. In 1981, $1.4 billion in U.S. Conable, as presently written, were en­ of capital for U.S. corporations-in­ source income reported to IRS was acted. This is because the Gibbons­ crease interest costs to American Eur­ sent to the Antilles. The effective tax Conable bill exempts from taxation obond issuers and otherwise cause a rate on this U.S. source income was the following categories of interest dislocation in U.S. capital markets. only 1.85 percent-$26 million out of income paid to foreign persons: However, my bill amending the In­ $1.4 billion. Had the regular 30-per­ [Tax loss in millions. 1980] ternal Revenue Code-exempting from cent withholding been applied to this 1. Interest on U.S. real property taxation interest paid on Eurobonds income, it would have produced more mortgages...... $11.5 issued directly by U.s·. corporations to than $400 million in tax revenues to 2. Interest on corporate bonds, U.S. foreign bonds holders-would remove the United States. Even these figures Treasury securities and other gen- the leverage now enjoyed by the Alltil­ greatly understate U.S. source income eral interest payments ...... 65.0 les over the treaty negotiations and sent to the Antilles and the potential 3. Miscellaneous interest such as allow Treasury to cancel the treaty if tax loss to the Treasury, because that paid by a U.S.-based branch nonabuse provisions are not signifi­ income reports sent to IRS exclude all of a foreign corporation...... 2.0 cantly strengthened. Approval is desir­ interest paid by financial institutions, able for several related reasons: real estate capital gains, and, of Total tax loss ...... 78.5

11-059 0-87-28 (Pt. 19)

' 26542 EXTENSIONS OF REMARKS September 29, 1983 In addition to the tax revenue IRS the Treasury of $35 to $50 million­ Fifth, requires that the election out collects from U.S. paying agents on in­ $120-million foreign tax credit savings of joint and survivor converage must terest income paid to foreign persons, minus the $78.5-million tax loss on in­ have the consent of the spouse; certain tax treaty countries such as terest income exempted under the bill. Sixth, requires that in the case of a Switzerland collect and remit to IRS This revenue __gain estimate does not divorce after a joint and survivor an­ additional tax revenue on income re­ include the loss under Gibbons-Con­ nuity starts, the ex-spouse be eligible ceived by persons in the treaty coun­ able of $13 million in taxes collected to receive survivor benefits; try at treaty reduced tax rates who are by and remitted to the United States Seventh, repeals the ERISA require­ ineligible to receive the reduced rates. by our tax treaty partners. However, ment allowing a plan to void an elec­ The amount of tax remitted to IRS by my bill would result in a tax revenue tion of joint and survivor benefits if U.S. tax treaty countries applicable to gain of the entire $120 million because the participant dies within 2 years of interest income during 1980 that no interest income presently taxed the election; would be exempt from taxation under would be made exempt.e Eighth, requires that a joint and sur­ the Gibbons-Conable bill was about vivor annuity be the normal form of $13 million. benefit payout for any plan which As a result, the total tax revenue THE PENSION EQUITY ACT OF offers an annuity as an optional form loss for 1980 that would have occurred 1983 of benefit payment; under the Gibbons-Conable bill is Ninth, provides that a spouse can di­ $91.5 million. rectly attach the employee's pension NO TAX LOSS UNDER THE BARNARD BILL HON. JOHN N. ERLENBORN OF ILLINOIS in child support, alimony, and marital My bill to amend the Internal Reve­ property cases and requires that the nue Code would not result in any tax IN THE HOUSE OF REPRESENTATIVES plan, to the extent the court orders, revenue loss because Eurobond inter­ Thursday, September 29, 1983 split the participant spouse's pension est income paid to foreign persons is account between the divorced husband now exempt under the United States­ e Mr. ERLENBORN. Mr. Speaker, today I am introducing legislation on and wife, and provide the nonpartici­ Netherlands Antilles tax treaty. Fur­ pant ex-spouse with the· option for an thermore, . there are very good tax behalf of the administration entitled compliance reasons for including the the "Pension Equity Act of 1983." I annuity based on her own life expect­ Eurobond interest exemption in the am pleased that ·Representatives Rou­ ancy-at the plan's early retirement Internal Revenue Code, while no simi­ KEMA, CONABLE, FIEDLER, HOLT, JOHN­ date for the participant; lar justification exists for exempting SON, MARTIN of Illinois, SCHNEIDER, Tenth, requires that individual bene­ fit statements include a notice to par­ from taxation the other types of inter~ SMITH of Nebraska, SNOWE, and est under the Gibbons-Conable bill as VucANOVICH are joining as original ticipants that vested benefits may be noted below: sponsors of this bill. Mr. Speaker, I forfeited upon death; and First. The cost-benefit justification think it is important to state at the Eleventhi increases the · level at for including in the Internal Revenue outset of my remarks that the legisla­ which plans may cash out benefits Code a tax exemption for . Eurobond tion I am introducing today contains from $1,759 to $3,500. interest paid to foreign persons in­ provisions comparable in scope to Mr. Speaker, while I fully support stead of through the Antilles Tax those in S. 19, the Retirement Equity the thrust of the administration's pro­ Treaty as is now done-is that U.S. Act, which was introduced by Senator posal, I am, however, concerned about companies could issue Eurobonds DoLE. It is also similar in many re­ two specific provisions. First, I am without having to incur the cost of es­ spects to H.R. 2100, the Private Pen­ greatly concerned that lowering the tablishing and maintaining finance sion Reform Act of 1983. participation -age from 25 to 21 will subsidiaries in The Netherlands Antil­ As you and my colleagues already substantially and unnecessarily· in­ les. No similar costs are incurred by know, women, as a group, have tradi­ crease the administrative costs forcer­ corporations for the other types of in­ tionally received a lower level of re­ tain plans, particularly those in indus­ terest that would be tax-exempt under tirement income than men for a tries such as retail sales. As you know, Gibbons-Conable. number of reasons. Further, married industries such as these experience a Second. From a tax compliance women are often dependent on their high turnover of employees at young point of view, allowing direct issuance husband's pensions for retirement ages, and most of these employees will of Eurobonds would remove the major income. In many cases, however, the not stay long enough to become vested hurdle that now prevents the Treas­ wife never receives any of the hus­ and receive benefits. ury Department from terminating the band's retirement pension. This may Rather than forcing plans to unnec­ Antilles Tax Treaty. Treaty termina­ be due to divorce or because the hus­ essarily increase their paperwork tion would enable IRS to track down band elected not to provide survivor burden and PBGC premiums, I would tax cheats who now use the Antilles to coverage for his wife. The legislation like my colleagues to consider a provi­ evade U.S. income taxes. No compara­ that is being introduced today is de­ sion which would provide plans of the ble advantage is obtained by exempt­ signed to correct some of these inequi­ defined benefit type with an option to ing other types of interest from tax­ ties. age 21 participation but which would ation, as proposed in Gibbons-Conable. Specifically, the Pension Equity Act also provide the same benefit and vest­ Third. One final point-since both of 1983 does the following: ing as age 21 participation. This alter­ the Gibbons-Conable bill and my bill First, lowers the minimum age of native which a defined benefit plan would eliminate the need for U.S. com­ participation under ERISA from 25 to would have to elect, would require panies to maintain Antilles finance 21; pension benefit accruals to be credited subsidiaries, Morgan-Stanley of New Second, lowers the minimum age for for service from age 21, but such ac­ York estimates there would be a tax vesting under ERISA from 22 to 21; cruals would not have to be granted saving of $120-million annually since Third, insures 'that individuals on until age 25-the current law mini­ U.S. companies would no longer be maternity or paternity leave would not mum age of participation. This would able to offset against their U.S. tax li­ incur a 1 year break in service for par­ allow plans to avoid burdensome pa­ ability the foreign tax credits attrib­ ticipation and vestihg; perwork for employees who may only uted to their Antilles finance subsidi­ Four-th, requires that joint and sur­ work a short period of time and leave aries. As a result, Morgan-Stanley, and vivor benefits be the normal form of before vesting, but would still provide the Treasury Department estimate benefits even if an individual contin­ employees who stay with benefit that passage of the Gibbons-Conable ues working past the plan's early re­ credit for those years. This proposal bill will result in a net revenue gain to tirement age; · would accomplish the same goal as the September 29, 1983 EXTENSIONS OF REMARKS 26543 administration's bill but at what I be­ lative proposal will be a crucial factor efit option, which is normally only lieve to be a lower adminstrative cost. in expediting needed reforms. available when the employee reaches This is important if we are to continue The problem this bill addresses is the age of 55. to encourage the improvement and ex­ one that principally affects one par­ In other words, an employee could pansion of defined benefit plans. ticular segment of our population: begin working for an employer at the The other provision that I am con­ women of retirement age. It is disturb­ age of 25, vest at the age of 35, and die cerned about is one which changes the ing to note that 81 percent of all at the age of 55 and the surviving court ruling in BBS Associates; that is, women over the age of 65 who live spouse would receive absolutely no requiring that the joint and survivor alone are living in poverty. While portion of those vested benefits. annuity requirement be the normal there is no single reason for this, the Meanwhile, she may have been doing form of benefit payment. Here, Mr. fact that less than 10 percent of all her own work in the home, which Speaker, I am very concerned that re­ surviving spouses receive pension ben­ leaves her without a husband, pension, versing this decision might result in efits is certainly a major contributing or any other form of income support. plans abandoning any annuity options factor. The importance of a pension is True, she may receive an insurance in order to avoid the joint and survivor underscored by the fact that, while 32 payment which may tide her over for annuity requirement. This could percent of those who receive only a couple of years but, by the time she create far greater harm to participants social security benfits are at or below reaches the age where the annuity and their beneficiaries than the help the poverty level, only 98 percent of would have begun, that insurance this provision is intended to provide. I those receiving social security and money is gone. fear that defined contribution plans pension benefits are above that level. I believe that reform in this aspect may become just glorified savings ac­ This is one measurement of the so­ of pension inequity must be addressed counts paying lump sums, rather than called feminization of poverty. and resolved by this committee prior provide the monthly retirement Nevertheless, we cannot ignore the to congressional action.e income such plans now pay or should progress that has been made overall in be paying. pension coverage for both men and While the bill is improved technical­ women. Since 1958, the percent of pri­ ly over similar legislation introduced vate sector employees covered by pen­ to date, I invite comments from all sion plans has grown from 32.4 per­ THE PENSION EQUITY ACT OF parties concerned in order to make the cent to 50 percent. In addition, with 1983 legislation as beneficial to participants enactment of ERISA in 197 4, some and as workable to plans as possible. progress was made for women with the HON. BARBER B. CONABLE, JR. Mr. Speaker, while I have concerns inclusion of provisions such as that OF NEW YORK about the two aforementioned provi­ which requires credit to be given for IN THE HOUSE OF REPRESENTATIVES service before a "maternity leave" sions, I believe that the time has come Thursday, September 29, 1983 to eliminate those provisions in pen­ Nicaragua as having greatly emboldened recent Wall Street Journal editorial e Mr. LAGOMARSINO. Mr. Speaker, Fidel Castro and the Russians. Their hopes draws attention to the fact that pri­ I would like to bring the following op­ of greater influence in the Caribbean Basin vate industry can and will build sensi­ ed piece to the attention of my col­ and South America had often been thwart­ leagues. The piece, from the Wall ed-by the utter failure of Allende's eco­ ble synfuels projects without assist­ nomic policies in Chile, by a similar disaster ance from the Synthetic Fuels Corpo­ Street Journal, Monday, September for the military left in Peru, by government ration or any other Federal agency: 26, 1983, is entitled "Winds of War," strength in Venezuela and Colombia, and by The editorial follows: and deserves special attention, particu­ the power of the people at the ballot box in larly its comments concerning the Jamaica, to cite a few examples. Holding the [From the Wall Street Journal, Sept. 22, recent speech given by Under Secre­ Nicaraguan beachhead and expanding it to 19831 tary of Defense Fred Ikle, which calls El Salvador, Guatemala and Honduras thus have become major Soviet-Cuban goals. SINFUL SUBSIDIES for a victory for the forces of democra­ cy in Latin America. Congress after the KAL shootdown seems The nation's first coal-gasification syn­ less receptive to the Boland-Dodd efforts to thetic-fuels plant is now coming on stream WINDS OF WAR undermine Nicaraguan anti-communists and in Kingsport, Tenn. The project is on time We suspect Americans were shocked by that is progress of a sort, American liber­ and on budget. But the really amazing part the Soviet murder of the 269 people on KAL als-at least those who can see some connec­ is that it has been done without a dime of Flight 007 for reasons going beyond horror. tion between the murder of airline passen­ government money. There is a subdued awareness that our con­ gers and the murder of Nicaraguan Indi­ Tennessee Eastman, a unit of Eastman flicts with the Soviets in two arenas, Leba­ ans-may finally be losing, albeit slowly, Kodak, will use the plant to convert about non and Central America, are becoming their romantic vision of war in Central 900 tons of coal a day into chemicals for more dangerous. And doubts, reminiscent of America as a peasants' war. It has never Kodak film and other plastic products. The the Vietnam era, exist over whether the been. The assaults are being conducted by project, built by Bechtel, is estimated by in­ U.S. is capable of sufficient national resolve well-armed professionals trained in Cuba to cope with the latest Soviet manifesta­ and the Soviet Union, using deception and dustry observers to cost about $300 million tions of aggressiveness. intimidation to recruit young fighters on and was planned in 1978-1979 on the basis There is fear of new embarrassment, an the scene. These cadres, often multinational of $12-a-barrel oil; at the current oil price of ignommwus Marine withdrawal from in makeup, are part of a world-wide war­ $29 a barrel, the Kodak project may be Beirut, for example, or a Bay of Pigs deba­ making conglomerate encompassing the highly profitable. cle for the anti-communists we are support­ PLO, the M-19 in Colombia, the Tupamaros If Kodak can build a profitable, privately ing in Nicaragua. American democracy's tra­ of Uruguay, the Montoneros in Argentina . financed synfuels project, why does anyone ditional distaste for war and the American and dozens of others. They are not trying to else need government funding? Is there any left's award of moral standing to communist win the hearts and minds of people, they genuine need for the grossly over-funded "wars of national liberation" also have are trying to subjugate . people, using time­ federal U.S. Synthetic Fuels Corp., to pro­ helped thwart "consensus." The uncertain­ honored methods employed successfully vide tax dollars for energy projects? ties have been manifested in Congress, against Czechs, Poles, Afghans, Vietnamese, For instance, SFC already has provided which before the KAL shootdown was fla­ Laotians, Estonians-make your own list. $120 million in guarantees for the Cool grantly hostile towards Nicaraguan anti­ And because of the weak U.S. response in Water Coal Gasification Project in Daggett, communists. Even now, it has just severely Central America, at least up until President Calif. That project, being built by a consor­ restricted the ability of the Marines in Leb­ Reagan began military maneuvers in the tium led by Texaco, will use a similar coal­ anon to influence the outcome of the fight­ region, they are boldly pushing ahead for gasification technique as the Tennessee ing there. victory. Eastman, although it will produce electrici­ The fight in Lebanon has the most poten­ The clearest U.S. statement of the prob­ ty instead of chemicals. Another project get­ tial for embarrassment, but thanks to the lem, and most shocking to liberal diehards, strong presence of the Israelis, less potential has just been presented by Fred C. Ikle, ting government help is an oil-shale plant for serious harm to U.S. interests. A U.S. under secretary of defense for policy. He being built by Union Oil near Parachute, failure in Central America, however, will be told the Baltimore Council on Foreign Af­ Colo. Under a 10-year price-guarantee con­ far more damaging, forcing national leaders fairs that this administration seeks a victo­ tract now administered by SFC, the project south of the Rio Grande to seek accommo­ ry for the forces of democracy in Latin will supply diesel and aviation fuel for the dation with the Soviet-Cuban axis, thus di­ America. "And that victory has two compo­ Defense Department at a floor price of minishing U.S. security. It also need not nents: defeating militarily those organized $42.50 a barrel, indexed for inflation. happen. forces of violence that refuse to accept the SFC is eagerly trying to dole out what re­ The debate over whether to employ mili­ democratic will of the people; and establish­ mains of its $14.9 billion in Phase I appro­ tary power in this region often has been ing an adeqaute internal system of justice priations, due to end next June 30, before it presented as pro-war vs. anti-war. So-called and personal security." can ask Congress for the rest of its $88 bil­ hawks are seldom credited with their basic He believes that the U.S. is at least united lion authorization. It recently signed letters premise, that a strong posture reduces in its desire to see open and genuine democ­ of intent for four projects amounting to rather than increases the chances for a racy and social betterment for the people of about $2.75 billion in loan and price guaran­ broadened conflict. Lately, however, the Central America. "Equally important is tees. debate has been getting clearer definition. what we want to prevent ... the expansion Kodak has found that it can build a syn­ Zbigniew Brzezinski, Jimmy Carter's of totalitarian regimes, particularly Leninist fuels plant without government funds and hawk, spoke recently in Ottawa about the ones, since they will import Stalinist police still turn a profit. Other companies are centuries-old expansionist impulses of the systems, bring in Soviet arms and even turning to the federal dole to build their Great Russian people, who today number invite Soviet military bases." plant, while many major oil companies have about 135 million but are the dominant na­ Mr. Ikle's assertion that military victory is tionality in a Eurasian empire of 385 mil­ vital will jolt Americans who have been simply abandoned synfuels as viable lion. China, In the context of Soviet war doctrine this causing the country's Catholic bishops to Nicaragua, Guyana and Zimbabwe-ab­ strategy makes little sense, because Soviet stress in a pastoral letter that Zimbabwe is stained, "thus," in the words of the New doctrine precludes the outbreak of war in becoming a place "where violent reaction York Times, "weakening the United States' Europe unless the Europeans start it-an against dissident activity has, to our certain attempt to demonstrate that most of the unlikely event. A cardinal principle of knowledge, brought about the maiming and world condemned the Soviet deed." Soviet war doctrine is never to alert a deaths of hundreds and hundreds of inno­ stronger adversary by attacking a weaker cent people who are neither dissidents nor In order to win support, furthermore, the one. If war becomes necessary to the attain­ collaborators. We are convinced that many U.S. agreed to a "soft" resolution which ment of political ends, it can only begin wanton atrocities and brutalities have been only once referred to the Soviet Union and with a pre-emptive strike against the princi­ and are still being perpetrated." The facts, avoided condemning it directly. Even so, pal adversary. In the context of this doc­ the bishops added, "point to a reign of Mugabe couldn't see fit to support us. As trine NATO is not relevant unless our allies terror caused by wanton killings, beatings, United Nations Ambassador Jeane Kirkpat­ are prepared to respond to a Soviet attack burnings and rapings.... " rick lamented: "I very much regret that on the United States by attacking the Sen. Jesse Helms impossible, delegation from visiting the area, principal­ e Mr. LAGOMARSINO. Mr. Speaker, immoral for us to seek, and thus ly by suggesting that we would be endan­ must be ripped out root and cause. To gered by traveling there. We insisted that if I would like to bring the following edi· Losers Inc., winning is losing. it were unsafe for a group of Members of torial by political columnist William Apply that same approach to our involve­ Congress to visit Lebanon for a matter of Safire to the attention of my col­ ment in Lebanon. A year ago, when Israel hours, then it was clearly not reasonable to leagues. Mr. Safire discusses the seem­ struck out at the decadelong Syrian-PLO order more than a thousand Marines to stay ingly prevalent attitude in the liberal takeover of Lebanon, Losers Inc. suddenly there for months on end. The American of­ movement today in America. They discovered the "territorial integrity" of that ficials relented and were exceedingly help­ Syrian-occupied land. In its war with the ful during the two days that we spent on seek, Safire explains, defeat for the PLO, Israel was out to win: To Losers, that forces of freedom and democracy. The was unacceptable. ships of the Sixth Fleet off the Lebanese article raises some interesting ques­ Accordingly, a firestorm of protest was coa.St and the afternoon that we spent with tions as to the nature of these politi· loosed against the Israelis, who did not un­ the troops in their sandbagged positions at derstand that in a world dominated by the Beirut International Airport . cians. The editorial appeared in the In this report, we present the views of the September 26 edition of the Los Ange­ Losers, victory is villainy. Reagan and his national security adviser were swept away in members <;~f the delegation in three parts: les Herald Examiner. that tide; in a blunder comparable only to first, the positive findings of the delegation; THE FEAR OF WINNING: ISN'T IT ALWAYS A Eisenhower's Suez mistake in 1956, the U.S. second, the issues that concerned us and, LoSING PROPOSITION? president ordered the Israelis to stop win­ third, some specific conclusions that we ning. In a colossal misjudgment, he accepted reached. WASHINGTON.-The fear that I fear is the Losers Inc.'s assumption-abetted by the FINDINGS fear of winning. State Department's Philip Habib-that the The delegation has a number of positive A new confidence can be found in the problem would be to get the Israelis, not the observations that deserve attention and legion of self-doubt. Isolationist legislators Syrians, out of Lebanon. ought not to be submerged beneath more and dovish pundits sense that their brand of .. Today, some of the same anti-victorians critical remarks that will appear later. who urged Reagan to intervene in Lebanon defeatism is gaining the upper hand in the (1) U.S. military personnel in and around formation of public opinion. In debates and when the Israelis had the Syrians and PLO Lebanon have been acquitting themselves polls on our involvement in Lebanon and El reeling are now demanding that he pull out superbly. U.S. forces are playing a lead-role our Marine contingent because we are in a in support of establishing peace and stabili­ Salvador, we have been witnessing the tri­ no-win situation. umph of Losers Inc. ty in Lebanon under extremely difficult Defeat is its flight plan, dialogue its pana­ -Their litany is familiar: It's none of our conditions. business; the locals are all corrupt; the Syr­ The Marines in the MNF are filling a nec­ cea, the quagmire its symbol. ians, with Soviet backing, cannot be beaten; In Central America, Losers Inc. assured as in Central America, the U.S. public won't essary role in the steps to stability in Leba­ us, the dispatch of 55 military advisers to El non, but under hazardous conditions. Salvador would be the beginning of a new stand for an escalation of our involvement. Army personnel are assisting the Leba­ Vietnam; the socially progressive guerrillas And now some defeatists are adding a new, nese Armed Forces training its own were certain to win the hearts and minds of ironic twist: Why can't the Israelis take care forces and in doing so providing an invalu­ the peasants; and resistance by our thuggish of this and let our Marines come home? able service to the Lebanese government. allies, with their right-wing death squads The answer to all the predictions of fail­ The delegation heard nothing but the high­ The LAF have shown considerable im­ 15,000 military personnel poised in the area. the arrival of the delegation, U.S. intelli­ provement. partlY as a result of an intense <6> The principal problem facing Lebanon gence found that a number of artillery posi­ American training program run by U.S. is its division into hostile factions based pri­ tions increased from 72 to more than 100 in .Army personnel. and partly as a result of marily on religious The Multinational Force -com­ able to maintain internal security is a key enlisted, junior officer and general officer prised of more than 2,200 French, more ingredient for the future of Lebanon. levels. Only at field grade level is the LAF than 2,000 Italians, about 1,600 Americans A ceasefire, if it holds, could provide the predominately Christian. and 100 British on the ground in Lebanon­ opportunity to resume training of the LAF. <4) There is no question that "hostilities" is working extremely well together and has A fully-trained LAF would largely remove are underway and that serious risks are in­ been effective in its peacekeeping role. the requirement for the MNF. volved. Some may quibble over the interpre­ Other MNF contingents have taken as A ceasefire could also provide an opportu­ tation but it is clear to the Marines at the much or more fire than the U.S. contingent nity for the U.S. Marines to strengthen Beirut Airport that they have been "intro­ and are contributing a great deal. The their defensive position. duced into hostilities." French support their force with five ships 5. The success of the negotiations is not In military terms, our position on flat and the Italians with three ships. In addi­ entirely in the hands of the government and land, immobilized at the base of a high tioR, the British have moved fighter aircraft its Lebanese opposition. Syria is a player in mountain range, is clearly unsatisfactory. to Cyprus, approximately 80 miles away. the negotiations. The delegation uncovered The position was not chosen for military The American public does not realize how suggestions that the Syrians had been in­ utility, however, but was originally selected much the other Multinational Force nations tentionally sabotaging peace talks. On more as the most appropriate place to interpose are doing because American news coverage than one occasion when the Lebanese par­ Americans between the Israelis and the Leb­ understandably concentrates on the Ameri­ ticipants appeared to be nearing an agree­ anese at a time when mere "presence" was can role. What is more, it is not generally ment that would bring about a ceasefire in the chief concern. Another key consider­ known, but the French have taken more the Suq el-Gharb/Aley area and lead to ation was that possession of the airport casualties than the U.S. Marines. It is by no talks on a long-range political solution, the could expedite the evacuation of American means true that the United States is bear­ Syrians suddenly interjected demands that and allied personnel if required. ing most of the burden and our allies are sit­ were patently unacceptable to the Lebanese The Marines are exposed. It is important ting on the sidelines. government. to note, however, that the officers in the CONCERNS 6. The Lebanese government of President field judged that only a relatively small por­ While we found many positive points to Amin Gemayel, while interested in starting tion of the fire that struck Marine positions record, we also found a number of things talks on a long-range solution, at least in was specifically aimed at the Marines. Intel­ that disturbed us and that should be legiti­ part to demonstrate its good faith to its for­ ligence indicated that many rounds hitting mate cause of concern for the U.S. Congress eign supporters, may not be sufficiently the area were strays while others were and the American public. committed to completing the talks. Success­ aimed at Lebanese forces located in close 1. The diplomatic and political process has ful negotiations would require significant proximity to the Marines. For example, placed the Marines stationed in Beirut in a concessions by Gemayel's Christian backers. until just a few days before the delegation highly-exposed position. Christian power in the Lebanese govern­ visit, a large portion of the Lebanese Air 2. In such a situation there is always a ment, including the exclusive right to Force was located at the Beirut Airport. Op­ danger of slow, incremental escalation that occupy the presidency and the 53 percent position forces fired a few hundred yards could lead us more or less rapidly from built-in majority in the Parliament, is based over the Marine Headquarters to reach the peacekeeping role to an intractable military on the 1932 census that showed Christians Lebanese aircraft. Sometimes those rounds involvement. A year ago, we were told our comprising 53 percent of the population. No fell short. In other instances, reports sug­ forces were there for but a brief period. Now one doubts that the Lebanese Christian gest that the Marines were fired at by "free­ we are debating an extension of their pres­ population is far less than 53 percent today, lance" artillerymen of various militia groups ence for another year and a half. The num­ in part because of the higher Moslem birth violating specific directions from their head­ bers of our onshore forces have increased, rate and in part because of the greater quarters. albeit only modestly from 1,200 to 1,600. Christian propensity to emigrate. Thus, the (5) U.S. forces involved in the Lebanese Of greatest concern to the delegation was Christians must concede more authority to operation are substantial. In addition to the its discovery that responses to threatening the Moslems if Lebanon is ever to be recon­ 1,600 Marines and 100 Army personnel situations have escalated significantly in ac­ stituted as a stable and united state. Virtu­ ashore, there is another battalion landing cordance with the use of force under the ally everyone with whom we conferred team offshore <2,000 Marines> and 15 Navy Rules of Engagement . The ROE are agreed on this point. Yet President Ge­ ships ranging from LST's to a guided missile classified and cannot be discussed in the mayel's Christian political faction appears cruiser just offshore and the carrier USS Ei­ open. The delegation was concerned, States to the Lebanese central government arrival of the battleship USS New Jersey. however, that alterations in the ROE could could relax the pressure on the Gemayel September 29, 1983 EXTENSIONS OF REMARKS 26549 government that appears necessary to Union's efforts to disrupt our diplomacy will Libyan forces cease meddling in Lebanon, obtain the concessions by the various fac­ have scored a victory; radical and rejection- the Lebanese people will have a much better tions needed to achieve a stable govern­ 1st elements will be strengthened. The cause chance of solving their own problems. ment. of peace and justice will have suffered a set­ Lebanon is an international problem. An authorization for 18 months may be a back. Israel's security on its northern border We have not made it our problem alone to signal to the Syrians that we will stay the will be weakened." date and we must not do so in the future. course, but it may also tell Gemayel that he The delegation agrees that our present We can provide assistance to the Lebanese can mark time and not pursue the political level of activity will serve the long-term in­ in solving their problem, but we cannot solution which everyone agrees is the only terest of peace. solve it for them. way out of the civil war. 11. It was the assessment of most diplo­ We are concerned that the size of the 7. An uncertain number of troops from matic officials and military officers in con­ job is staggering. Along with others, we are the Palestine Liberation Organization tact with our Italian and French allies that, trying to help keep the peace by sitting on a . ranging up to a few thousand, have if we pulled out, one and probably both of piece of Lebanese territory. We are seeking joined the fighting in the Suq el-Gharb/ those contingents would soon be removed as to assist in the training of an Army of Aley area in recent weeks or infiltrated into well. The delegation did not meet with any 65,000 by July 1985 that was largely a non­ Beirut. The Israeli attack of one year ago allied official and so cannot make its own existent force one year ago that had not that was supposed to have eliminated the assessment, but was impressed with the functioned out of its barracks since 1975. PLO threat did so only for a brief period. strength of the views held by American mili­ We are trying to bring together warring par­ The potential for the PLO once again to tary and diplomatic officers. The delegation recognizes that there is more than one mili­ ties who have fought with one another become an influence for the worst on the many times over the last millenium-but Lebanese scene is growing. Intelligence re­ tia organization that would try to fill the void left by such an evacuation. The ensuing who have often worked together quite well ports show an increasing number of PLO at­ for long periods also-while outside powers tempting to reenter the Beirut area each fighting would likely make what has oc­ curred in recent weeks appear but a skir­ have fanned the flames of sectarian animos­ evening. There was evidence, however, that ity for their own ends. At the same time, we the PLO were principally if not exclusively mish by comparison. The long-term political effects are impossible to detail but it is diffi­ debate in the halls of Congress and in the from the rebel group opposed to the leader­ editorial pages committing ourselves to ship of Yasser Arafat. cult to imagine that they would be in any way favorable to American interests. wrap all this up in a specified period of 8. Our Marines can be endangered by dis­ time. If we have correctly understood our cussion of pulling out. That is not meant to CONCLUSIONS national goals, then we wonder if it is not suggest that democratic debate of our in­ An immediate pullout from Lebanon overzealous to think we can see these goals volvement in Lebanon should be silenced. could very likely lead to the collapse of the reach fruition in any specific period. Rather But it is still incumbent upon us to recog­ present government, most of those inter­ it seems to us that the time required cannot nize that if the forces opposed to a political viewed agreed. This in turn could bring be clearly determined now and setting a settlement in Lebanon feel that the Ameri­ about a bloodbath as various factions fight deadline too short or too long might be det­ can commitment is tenuous, those forces for control and could possible end in the rimental. We believe continued monitoring could be encouraged to attack the U.S. Ma­ partition of Lebanon into a rump Christian of the U.S. commitment and Lebanese rines in hopes that casualties will result in state, an annex to Syria and an annex to progress is mandatory for the U.S Congress our withdrawal. Israel. This is obviously not an appropriate 9. This is not just a civil war into which course. and that such monitoring will be advisable the United States and other Western A long-term or open-ended commit­ even after the U.S. contingent is withdrawn. powers have interposed themselves. Leba­ ment would not be in the United States' in­ To extend the U.S. commitment to the non is a small nation whose more powerful terest nor in that of Lebanon since it might MNF for another year and a half without at neighbors have decided to take advantage of simply tempt the Gemayl government to the same time requiring verifiable progress its troubles. Syria and Israel have both put avoid making the hard but necessary politi­ in such goals as the training of the LAF and their forces in Lebanon. Syria is directly in­ cal compromises while in effect, hiding an agreement on broadening the "confes­ volved in the recent fighting. Syrian-accent­ behind the MNF shield. The Lebanese sional" base in the Lebanese government ed voices have been heard on military radios Christian community must realize that it would run the risk of involving U.S. forces giving commands. Lebanon is a nation that cannot have business as usual; and all sides more deeply than the circumstances would was the most democratic in the Arab world must realize that an acceptable compromise justify. After all, other major U.S. interests before its governmental system collapsed. It means no one gets everything that it wants. may be threatened and may merit a higher provided greater individual freedom and op­ The United Nations peacekeeping priority than Lebanon in terms of direct portunities for personal development than force in Lebanon lost its credibility by allow­ U.S. national security. even many western nations. As a powerful ing itself to be pushed aside. Past lessons To prevent this, the Delegation recom­ nation that claims to speak for a higher mo­ must not be ignored. One lesson is that mends that regular reports be made to the rality in world affairs, the United States other forces-any forces-must be made to Congress on such matters as: cannot simply ignore what is happening in realize they cannot attack U.S. forces with <1 > the expansion and training of the LAF Lebanon. impunity. It must also be very clear that no and improvement in its capacity to carry out 10. Our goals and reasons for being in Leb­ one firing on U.S. Marines will enjoy the its mission; anon are not clear to the American public. protection of an untouchable sanctuary. In (2) broadening the political base of the That is understandable since there is not a bald terms, that means this country must Lebanese government; and direct and immediate threat to obvious never, by statement or action, lead Syria to .<3> any indication of Syrian willingness to American interests such as a military attack think that it might be able to fire artillery reduce the level of tension. on a neighbor or the closure of access to key at our troops without generating a response (J) In view of the importance of these re­ resources such as Persian Gulf oil. The fact at least in kind, or a much stronger one. ports, the delegation further believes that that American interests are not direct or The U.K., France, and Italy are they should be made at least every 60 days, dramatic does not mean that those interests making major contributions to the Multi­ and more frequently if events warrant spe­ do not exist, however. There is a potential National Force in Lebanon, and have earned cial comment. threat to our long-term interest if unfriend­ the respect of the Lebanese people. But The achievement of a ceasefire in Leba­ ly foreign forces seize control of the coun­ other allies are capable of aiding Lebanon in non is most encouraging to the delegation. try. We think that Secretary Shultz made a other ways. It is not acceptable that the Such a ceasefire, if it continues to hold, will reasonable assessment of American interests U.S. is the only country supplying the Leba­ not only increase the opportunity for fur­ in Lebanon in his testimony before the nese Armed Forces with equipment and mu­ ther training of the LAF, but would also House Foreign Affairs Committee on Sep­ nitions. make it easier to pursue negotiations for a tember 21, 1983: Israel's unilateral withdrawal from the broadened Lebanese government. "At stake also are some concerns that Suq-el-Gharb/ Aley area to a line south of Since a ceasefire makes the issue of "hos­ affect our national interest and the security the Awali River-a move which the U.S. had tilities" involving U.S. Marines moot, it of our friends and allies. If American efforts earlier urged on the Israelis in line with an would appear to be appropriate to defer for peaceful solutions are overwhelmed by agreement with Lebanon, but had subse­ consideration of the Zablocki resolution brute force, our role is that much weakened quently asked Israel to delay, created a until it can be determined if the ceasefire everywhere. Friends who rely on us will be vacuum which led to problems that had not holds. disheartened, and will be that much less been fully foreseen. In addition to the hundreds of service per­ secure. Moderates in the Arab world whom An overriding goal of American policy sonnel that individual delegation members we are encouraging to take risks for peace in Lebanon must be to get all foreign forces spoke with, the delegation as a whole met will feel it far less safe to do so. The Soviet out. When Syrian, PLO, Israeli, Iranian and with the following persons: 26550 EXTENSIONS OF REMARKS September 29, 1983 Vice Admiral Ed Martin, Commander, ships-to the minimum force necessary to Those changes would go most of the way Sixth Fleet. support the troops ashore. We should not toward solving two of the most troublesome Rear Admiral Jerry Tuttle, Commander, increase the troops ashore. problems besetting the Republic, namely: Task Force 60. We should maintain our flexibility to sup­ the appallingly low number of eligible Captain Morgan France, Commander, port the efforts for peace so long as the voters who actually go to the polls to cast Task Force 61. probability of success exists without a com­ ballots for President of the United States; Ambassador Richard Fairbanks, Special mitment for a fixed period of time. Any an­ and, the distortion of our electoral process Ambassador. nouncement of withdrawal in the near term that results from the networks' compulsion Ambassador Robert Dillon, Ambasssador would be counter-productive.e to Lebanon. to project election winners before the polls Colonel Tom Fintel, Office of Military Co­ are closed everywhere. ordination Safety, however, estimates that during the Fatal drunk driving accidents involving course of a year as many as 100,000 drivers OF ILLINOIS motorists ages 18 to 20 have shown a dra­ operate motor vehicles while drunk. IN THE HOUSE OF REPRESENTATIVES matic decrease in the six months since the Thursday, September 29, 1983 state raised the legal drinking age to 21. [From The Star-Ledger, Newark, N.J., Sept. In addition, the number of drivers under 20, .1983] e Mr. CORCORAN. Mr. Speaker, due 21 who were drunk at the time of fatal acci­ to previous commitments, I was not FESTIVAL To ENLIST TEEN SUPPORT FOR dents also decreased, according to State SOBER DRIVING present and voting when the House Police statistics obtained yesterday. considered various legislation on the For the first six months after the drinking ESSEX RALLY ORGANIZERS HOPE YOUTHS GAIN following days: age was increased from 19 to 21 on Jan. 1, " UPBEAT REASON" TO SHUN BOTTLE THURSDAY, SEPTEMBER 22, 1983 there were 52 fatal drunk driving accidents involving motorists between the ages of 18 "Don't do what I did." Had I been present, I would have and 20. This compared with 79 fatal acci­ That's the message an 18-year-old former voted against an amendment to add dents involving the same age group during a athlete-now confined to a wheelchair after $300 million to the Labor-Health and similar period the year before. driving while drunk-will bring to thou­ Human Services-Education appropria­ Meanwhile, the number of 18-to-20-year­ sands of fellow teenagers next month tions bill for fiscal year 1984 by imposing substan­ come. All of the safety technologies includ­ excuse not to redress the obvious trading in­ tial sales taxes on consumption. Under ed in the Senate Commerce Committee bill equities under which we're operating. GATT rules, these sales taxes may be rebat­ are under development in the industry, and As your letter to Ambassador Brock indi­ ed on exports and imposed on imports, DOT has them under consideration and has cated, there's not much that auto manufac­ whereas income and payroll taxes may not. the authority to accelerate this develop­ turers can do about the windfall advantage This really hits U.S. products and jobs ment and can regulate the timing and de­ the Japanese get as a result of an out-of­ joint exchange rate that reflects an under­ where it hurts. United States cars shipped tails of implementation, if needed. valued yen and an overvalued dollar. That's to Japan carry a full load of taxes when My second "current event" is fuel econo­ the province of government. And so is the they leave our shores, and then Japan adds my. tax problem, which gives the Japanese an a sizable commodity, or consumption-type At Ford we have improved our average unfair advantage in this market and penal­ tax when they get there. fuel economy by more than 70 percent since izes us in their market. Together, the Conversely, when a Japanese car is ex­ 1975, and we're the only manufacturer with dollar /yen misalignment and the tax inequi­ ported to the United States, Japan doesn't cars on all three of the EPA 1984 highest ty account for well over half of the Japa­ levy the consumption tax-which amounts fuel economy lists-top ten overall, top ten nese "cost" advantage. This is a very serious to 17% or 22V2 percent-and there is no com­ gasoline, and top ten domestic. problem for the domestic producers. mensurate tax collected in this country. In real world driving, the 1984 Ford Escort At Ford, we believe that the lion's share That's worth something like $600 a car to and Mercury Lynx with their lively 2-liter of the responsibility to be competitive be­ the Japanese. It's all legal under GATT reg­ diesels will give 1,000 miles of city driving longs to us in the private sector and we're ulations, but U.S. producers and their em­ for just over 24 gallons of fuel at a cost of working hand in hand-management and ployees get hurt, and all taxpayers in the about $29 at present prices. Most drivers labor-as hard as we know how: United States have to pay the bill. will need to fill the tank only once a month. When other industries were cutting back These are the reasons-tax inequities and Our full-size sedan for 1984 has better fuel in recessionary times, we accelerated the currency misalignment-that explain why economy than our smallest 1975 car. pace of product innovation, introducing 8 the United States can't compete on equal Put another way, fuel economy improve­ new cars and trucks in the brief span of 18 terms against imports at home or in mar­ ments have more than offset real fuel price months-products which are leading the in­ kets abroad. increases-the inflation-adjusted fuel cost to dustry in quality, value, technology and fun. I know there are some tax writing experts operate today's full-size car is 28 percent Our quality has improved by more than 50 on the Caucus. It seems to me that short of less than a comparable 1975 model. It's no percent since 1980, and independent surveys recasting our entire tax system, the United wonder then that there has been some shift show we are better than our U.S. competi­ States has to find a way to treat some of our back toward larger cars. But · it's not a tion and as good as, or better than, most of taxes in a manner similar to Europe's and return to the pre-OPEC way of living and our foreign competition. Japan's-that is, to reduce the burden on driving. Large cars today only account for By reducing operating costs, raising pro­ United States exports and to equalize the about 12.3 percent of new car sales. ductivity and moderating compensation, we burden on goods imported into this country. Yet press reports have seemed to focus have reduced our break-even point sharply, The idea of a reciprocal tax came up in a not on progress we've made, but on the fact which is why we're in the black even with House Banking Committee hearing on in­ that we will be short of CAFE standards. sales levels that aren't really worth cele­ dustrial policy-placing a U.S. tax on any Ford expects to comply with the law by brating yet. imported goods that carry an unfair tax ad­ using the flexibility provided in the law to But while we in industry pursue those vantage. John Nevin of Firestone has of­ apply credits from those years in which we product, quality, cost and productivity fac­ fered another approach: adopt a federal exceed the standards. Let me assure you tors within our control, government has to excise tax and allow credit against excise that the reason we're short of the standard make the same sort of progress in the areas tax liability for other U.S. taxes paid on do­ is not a lack of technology or any dimin­ only it can control. The long-term answer is mestic production. ished financial or engineering commitment to have a fully competitive auto industry in Well, that's a pretty lengthy list of issues to new fuel efficient products, but rather it a competitive United States. The way to get and I know you have other priorities, as we is directly attributable to a change in what there is to have a business environment and do. We still think, for example, that some of consumers are buying today. government policies that are competitive the Clean Air Act changes we supported As you know, you have provided NHTSA with those of our foreign rivals. I believe make sense for the industry and consumers. with administrative authority to make some the top priorities for policy change are to Also, we understand that the House is wait­ adjustments; therefore, we have not urged correct distortions in exchange rates and in­ ing for the Senate to act on the issue of any specific changes to the law at this time. equities in tax treatment. product liability reform, which is essential if Surely manufacturers-after all of our ef­ Although the dollar is overvalued against this country is to provide a measure of cer­ forts and success in completely revamping most major currencies, the greatest damage tainty for the engineers and managers who September 29, 1983 EXTENSIONS OF REMARKS 26555 make design decisions as to what they can lion tons to 2 million tons in 1985, 4 could generate, and most important, expect to be held accountable for. When million tons by 1990, and 6 million for the vital boost it would give our these issues get farther along I would like to tons by 1995. Imports will continue to meet with you again to discuss them. Nation in attaining its goal of energy We've seen examples of what can be done come from Australia, South Africa, independence.• when government, industry and labor come and Poland and will begin to come together on critical issues in other countries from new exporting countries such as and in other industries. By working togeth­ Colombia. Colombian marketing repre­ BROTHER PATRICK GREGORY er I am sure we can make progress here as sentatives are currently meeting with O'BRIEN DAY PROCLAIMED BY well. utilities in the United States offering CITY OF CINCINNATI Now let me recap those items that I have cheaper coal delivery than our domes­ mentioned today . . . tic market can provide. Continued Japanese auto restraint at present levels is top priority. This is the Our Commerce and State Depart­ HON. THOMAS A. LUKEN quickest, surest way to get U.S. auto work­ ments have concluded that the enact­ OF OHIO ers back on the job and keep them there. ment of coal pipeline legislation grant­ IN THE HOUSE OF REPRESENTATIVES Action on yen and tax are critical if we're ing access to Federal eminent domain to get away frqm short-term remedies and could be a strong incentive to our trad­ Thursday, September 29, 1983 have a competitive U.S. business environ­ ing partners to purchase U.S. coal. e Mr. LUKEN. Mr. Speaker, it is a ment. Perhaps you would consider establish­ The European Community and the pleasure and a privilege to recognize ing a working group to move these issues Japanese have specifically stated that into the action phase. and commend Brother Patrick Greg­ We hope you'll help us get the message the high cost of inland transportation ory O'Brien F.S.C. for his outstanding across about the progress being made in is a major deterrent to increased pur­ service to Cincinnati's religious, educa­ safety and fuel economy; surely we don't chases of United States coal. Competi­ tional, and cultural communities. wish to revert to the adversarial way of ad­ tive pricing of our coal is essential for Brother O'Brien, who is celebrating dressing these mutual goals. the United States to achieve and main­ the twenty-fifth anniversary of his Clean Air Act revisions and product liabil­ tain its role as a stable and reliable ity reform continue as issues of high impor­ source of energy. profession of vows and the beginning tance to us and we hope that you will assist Consumer-owned utilities and indi­ of his high service, has recently been us when these items come before you. vidual consumers would benefit from honored in a special event that recog­ One thing is clear: America is in a world­ the competitiveness of the coal nizes his many contributions to the wide competitive race and running behind. city of Cincinnati. It is up to all of us to do our part to put our market. Presently, a small number of railroads have a virtual monopoly on Cincinnati paid special tribute to country back in the running. We in the auto him by proclaiming September 24, industry are glad to have you on our team. hauling coal needed by electric utili­ One final note, we have our all-new Mark ties. Coal slurry lines could compete 1983, as Brother Patrick Gregory VII outside ... I hope you'll take the op­ with railroads and encourage them to O'Brien Day. This appreciation day portunity to take a quick look. It is the most modify their coal hauling rates, which will acknowledge Brother O'Brien's technically advanced luxury car built in in tum would benefit consumers. Re­ caring for all humanity and depict his America. It literally rides on air.e cently, the Arkansas Power & Light honorable character. Co. signed a coal transportation con­ At a time in our Nation's history H.R. 1010 tract with the railroads, who underbid when many would rather take than the ETSI pipeline project. Had there give, we find a man who is devoting his HON. MEL LEVINE been no slurry line, the railroads time and effort to something meaning­ would have set their own rate unchal­ ful. Brother Patrick Gregory O'Brien OF CALIFORNIA had devoted 25 years to his religious IN THE HOUSE OF REPRESENTATIVES lenged. The utility estimates that the savings over present fuel transporta­ vocation. During these years he has Thursday, September 29, 1983 tion costs projected through the year been a prominent member of the Cin­ • Mr. LEVINE of California. Mr. 2016 would be $16.5 billion. cinnati community and has participat­ Speaker, I voted in favor of H.R. 1010, Additional benefits from enactment ed in the cultural and artistic life of the Coal Pipeline Act 1983, following of coal slurry pipeline legislation our city through his active involve­ considerable deliberation and ,careful would be realized in the potential of ment in the Cincinnati Art Museum, study of the arguments on both sides providing thousands of construction the Museum of Natural History, the of the issue. and related jobs, as well as creating Ancient Order of the Hibernians, and The United States must continue to the need for steel and other equip­ many others. Brother O'Brien has move forward to reach its goal of ment used in pipeline construction. used his knowledge of the greater Cin­ energy independence. During the last Direct construction jobs for the pro­ cinnati community and his upbringing decade, our country and other indus­ posed pipelines are estimated at in Price Hill to further an apprecia­ trialized nations suffered greatly due 46,000, with 5,000 jobs for operating tion of Cincinnati's citizens in general. to dependence on energy supplies sub­ and maintaining the systems. Indirect He has spent the last decade in service ject to interruption. With instability manufacturing jobs to provide valves, to the Cincinnati educational commu­ in both the Middle East and Latin pumps, heavy duty equipment, and nity at LaSalle High School. More­ America growing, we must lessen our steel would be approximately 100,000. over, Brother O'Brien has carried his dependence on foreign fuel and there­ Pipeline construction would provide vocation to other States and foreign by serve as a stable source of energy a market for thousands of heavy-duty countries during his years of service to for our allies. vehicles, light-duty trucks, pumps, and his faith. Coal is the most abundant resource electric motors. It is estimated that 3 We in Cincinnati are privileged to in this country. The competition from million tons of steel would be needed have a man who seeks to help his coal pipelines could assist us in at­ for the main pipelines, as well as addi­ fellow citizens. Brother Patrick Greg­ tracting foreign markets and could tional pipes and conveyor belts. And, ory O'Brien has waved a banner of help assure that U.S. markets use U.S. over a 20-year period, the amount of sensitivity, compassion, and service coal. As the cost of rail transportation State, local property, and excise taxes and deserves a day of honor for im­ of coal escalates, more and more do­ paid would be approximately $2.9 bil­ measurable public service. Speaking mestic utility companies are purchas­ lion. for the people of the First District of ing or looking to purchase their coal In sum, Mr. Speaker, I supported the Ohio and the city of Cincinnati, I overseas. The National Coal Associa­ Coal Pipeline Act of 1983 for the em­ would like to thank Brother O'Brien tion projects that coal imports will in­ ployment opportunities it would pro­ for his dedicated and distinguished crease from the current level of 1 mil- vide, for the savings to consumers it service to his faith and our city.e 26556 EXTENSIONS OF REMARKS September 29, 1983 GOD. MAN, AND WAR: CHRISTI­ Christian intolerance. however. has PENSION EQUITY ACT OF 1983 ANITY VERSUS ISLAM VERSUS not taken second place to that of our JUDAISM Islamic brethren. From persecution of HON. 80881 FIEDLER the Donatists in the fourth century­ HON. JOHN J. LaFALCE through both Catholic and Protestant OF CALIFORNIA OF NEW YORK Inquisitions, the Wars of Reformation, IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES the Thirty Years War. St. Bartholo­ Thursday, September 29, 1983 Thursday, September 29, 1983 mew's Day Massacre. the Battle of the eMs. FIEDLER. Mr. -Speaker. I am Boyne. brutal persecutions in both • Mr. LAFALCE. Mr. Speaker. one proud to join today as one of the origi­ would think the news of Lebanon is North and South American colonies, nal sponsors of the Pension Equity Act emanating from a time warp and up to today's sickening fratricide in of 1983. This legislation is the result of today's headlines should highlight the Northern Ireland-Christians have long meetings between White House feats-at-arms of Saladin. St. Louis of continued to kill each other with officials and many of the Republican France. and Richard the Lionheart. frightening regularity and efficiency. Congresswomen. It is designed, in part, Lebanon has become. par excellence. All of this killing has been in the to correct some of the inequities which the land of global deja vu. We all look name of the same Christian God of currently exist in the private pension at Lebanon and wonder if we and love in whom they all professed belief. system. those fighting there have learned any­ The Holocaust has written its own in­ I believe most of my colleagues un­ thing since the days of the Crusades. credible arid sad chapter in mankind's derstand the importance of this legis­ Certainly. today•s battles over the inhumanity and murderous intoler­ lation-and the need for its swift en­ Middle East involve. as the Crusades ance. actment. Women have been the recipi­ involved. political and financial inter­ Fortunately, we Americans have ents of much lower levels of retire­ ests not directly related to religiously been blessed with a Constitution and a ment income for too many years. The inspired intolerance. However. without tradition of tolerance derived directly reasons for this lower level of income the official excuse and smugly held from an immigrant people-devout be­ are many. Among them are that belief that "God is on our side," there lievers in diverse faiths who sought in women's wages are lower than men's could long ago have been a peaceful America the religious freedom denied wages; women's labor force participa­ resolution of the conflict instead of tion is lower than men's; entry into further atavistic massacres and eter­ them in the original homelands from the labor force in many instances is nally bloody reprisals. which they fled. That Constitution more recent than men's; and women's The history of mankind's wars is re­ and tradition prohibit any law "re­ job turnover is greater than men's. As plete with belief in "God" as their mo­ specting an estfl,blishment of religion, a result, many more married women tivation and justification. More pre­ or prohibiting the free exercise there­ are dependent on their husband's pen­ cious human life and potential have of." sion for retirement income. More im­ been lost in fighting for a claim to ex­ We Americans, while experiencing portantly, there are too many exam­ clusive relations with the Deity than some religious intolerance in our histo­ ples of women who never receive any any other reason. Neither human ry, do not reflect sufficiently on how of their husband's pension because of greed nor lust nor envy can match reli­ fortunate we are and how rare such a the inequities of the current pension gious conflict as the preeminent cause benign separation of church and state system. Thus. the need for the Pen­ of mankind's killing each other. Even is in a world driven by religious hatred sion Equity Act of 1983 is even more the United States-Soviet confrontation and violence. Man himself cannot be pronounced. has an undertone of theism versus separated neatly into body and spirit­ Mr. Speaker, in 1978, the average atheism. nor can the insitutions he creates to annual pension for a woman was more Pharoah Akhnaton's ruthless purges serve his temporal and spiritual needs than $1,000 less than that of the aver­ of Egypt's polytheism, its priests and be separated absolutely. age male benefit. Even worse are the followers was followed quickly after However, America has achieved horror stories which we all continue to his assassination by efforts to wipe what might literally be called a modus hear about. where a husband dies 1 both his memory and followers off the vivendi between church and state-the year before being eligible for early re­ face of the Earth. Christianity was fi­ ministers of God going about His busi­ tirement benefits, and as a result. his nally granted toleration by the Roman ness and the ministers of Caesar going spouse receives no survivor benefits. Empire in A.D. 313, but in very short Mr. Speaker. these inequities simply order was using that same Empire as about theirs-cooperating where possi­ cannot continue. its secular arm in persecuting hetero­ ble but also trying never to interfere. No one questions the positive impact dox Christians. We have come to realize that govern­ that the Employee Retirement Income As the Moslem Empire spread over ment can best protect religious free­ Security Act has had on the Near and Middle East. North dom and encourage a moral citizenry some-it has significantly increased Africa. and most of Spain. the cry was by passing and enforcing fair laws in the ability of women to receive pen­ of "Jihad!" against the infidel Chris­ consonance with our Constitution. sion benefits based on their own or tians. Islamic paradise was to be won The churches can best foster and their husband's earnings. But, as I by killing enemies of the true religion help protect democratic principles by have stated earlier, much more needs in "holy war." Today, the same cries encouraging strong faith. good works, to be done. of "Jihad" echo near the Persian Gulf and an inviolable tolerance of the be­ Finally, while I would like to see the as the Iranian Shiites and the Iraqi liefs of others. Working separately and Pension Equity Act of 1983 go further Sunni die by the thousands, clinging successfully each in their own earthly in some areas. I nonetheless believe to their version of the message left by vineyard is the best way a fort-unate that there is a great need for reform the Prophet. and blessed America can benefit most of the private pension system to elimi­ The Sunni, Druze. and Shiite from church and state. Would that nate those pension provisions which moslem sects of Lebanon have tempo­ Lebanon and all the Middle East could discriminate against women. While the rarily left off shooting at each other be so fortunate.e legislation that we are introducing and have united-very warily-in today moves us one step closer, we shooting at the Christian Phalange, must continue to carefully examine which temporarily is representing the other pension areas where we might Christian Maronites, Greek Orthodox, be able to achieve equality by elimi­ and Uniates, and Catholic Armenians. nating discrimination while at the September 29, 1983 EXTENSIONS OF REMARKS 26557 same time continuing to assure a THE 42D ANNIVERSARY OF BABI Lessons of History." It is a film linking healthy private pension system.e YAR Nazism, racism, apartheid, and other forms of rabid nationalism with Zion­ HON. LAWRENCE J. SMITH ism. The tragedy of Babi Yar is that TRIBUTE TO STEPHEN OF FLORIDA there is no mention of Jewish victims, ROSEMAN, ESQ. IN THE HOUSE OF REPRESENTATIVES only Soviet heroism. This Sunday at Temple Sinai of Hol­ Thursday, September 29, 1983 lywood, Fla., the Jewish Federation of HON. JIM COURTER • Mr. SMITH of Florida. Mr. Speaker, South Broward will be remembering OF NEW JERSEY it is with great sadness that I rise Babi Yar with a special program. Pres­ IN THE HOUSE OF REPRESENTATIVES today to remind my colleagues of the entations will be given by two couples atrocities committed 42 years ago who recently visited Babi Yar and by Thursday, September 29, 1983 during World War II at Babi Yar. Babi guest speaker Dr. Franklin Littell, pro­ e Mr. COURTER. Mr. Speaker, re­ Yar geographically can be described as fessor of religion at Temple University cently, there has been a great deal of a ravine outside of Kiev. It is now real­ and founder of the National Institute discussion on the issue of legal services ized, however, that Babi Yar is far on the Holocaust in Philadelphia. for indigent Americans in connection more than a ravine. It is an eerie, Also, the regional B'nai B'rith youth with the Legal Services Corporation black abyss, a cemetery where thou­ organization will share their Holo­ and the Older Americans Act. Al­ sands upon thousands of Ukrainian caust project with the community. Jews were slaughtered by being They intend to collect 6 million pen­ though some may disagree over the ve­ stripped naked of their clothes and be­ hicle for providing such services, I be­ nies to remember the victims of the longings, lined up to face a Nazi firing Holocaust and then make an alloca­ lieve this debate has helped focus con­ squad, machinegunned down, or gressional attention on the pressing tion to Jewish agencies in south Flori­ buried alive. da. Thus far, 1 million pennies have need for the poor to have access to On September 29, 1941, the Jews of been collected over a 2-year period. legal representation. Kiev were called to assemble by the Babi Yar is more than a Nazi massa­ The need for legal services is par­ Nazi invaders. Many of the Jews be­ cre, it illustrates the kaleidoscope of ticularly evident in the case of senior lieved they were being evacuated to the Jewish experience in Russia, the citizens. The elderly are especially sus­ Palestine. The Soviet Jews knew noth­ harsh and bloodstained history of a ceptible to the kinds of civil legal com­ ing of the anti-Semitic legislation en­ people who still have no freedom from plications-for example, tenant/land­ acted by Na.Zi Germany against the harassment today.e lord, welfare and pension benefits­ Jews or of Hitler's final solution. With which legal service programs are de­ their destination unknown the Jews signed to assist. Furthermore, whereas gathered to be led to an incomprehen­ TRIBUTE TO HART AND SIMONA one-quarter of our elderly population sible fate. On September 29 and 30, HASTEN is poor or near poor, it becomes evi­ during a 36-hour period, a total of dent that senior citizens, as a group, 33,771 Jews were executed. Babi Yar HON. TOM LANTOS have special requirements for legal as­ was applauded by the German High OF CALIFORNIA Command because in 2 days the IN THE HOUSE OF REPRESENTATIVES sistance. Jewish death toll was statistically Stephen Roseman, Esq., president of higher than before was thought con­ Thursday, September 29, 1983 the Bar Association for Sussex ceivable. The gas chambers of Ausch­ • Mr. LANTOS. Mr. Speaker, it gives County, understands this situation. witz at their peak could not duplicate me great pleasure to pay tribute today Sussex County's Senior Legal Re­ this feat. And at Birkenau only 6,000 to Hart and Simona Hasten of Indian­ source Center has only one attorney Jews were killed daily utilizing their apolis, two people whose interests and one paralegal to handle the legal four gasing and cremating plants. span the globe, ranging from philan­ needs of hundreds of indigent senior After World War II and the murder thropy to sports. citizens. The inadequacy of these re­ of 6 million European Jews, the Soviet Hart Hasten exemplifies the Ameri­ sources has led Mr. Roseman to urge Union labeled Jews as unpatriotic, can success story. He was born in all members of the Sussex County Bar rootless, and cosmopolitans since they Poland and came to the United States Association to contribute financially sympathized. with world Jewry. Thus, in 1951, later graduating from the Uni­ toward the creation of another staff Soviet Jews suffered a backlash of versity of Minnesota Institute of Tech­ attorney position. Here is an example anti-Semitism. International attention nology. of the true spirit of cooperation and was focused on Babi Yar in 1961 when His business career has been long philanthropy which is needed to the Soviet Government was planning and distinguished. Perhaps his most insure all Americans are afforded the to build a park over the ravine. Soviet outstanding business commitment was opportunity to safeguard their own poet Yevgeny Yevtushenko wrote of to the elderly, through his founding of legal rights and liberties. Stephen Babi Yar, "Here all things scream si­ the Colonial Crest nursing centers, · Roseman deserves commendation for lently." The Soviet Union had denied which he operated with h is brother working toward this modest, but sig­ that Babi Yar was a gravesite of Soviet Mark. nificant, objective. The members of Jews. The Soviets even went so far as He later became president of the the Sussex County Bar Association to charge that Zionists were conspir­ First National Financial Corp. of Mar­ ing with Hitler and were in part re­ tinsville, Ind., and as chairman and di­ have demonstrated that small gestures sponsible for Babi Yar. In 1976, the of­ rector of the executive committee of can mean a great deal to the less for­ ficial monument at Babi Yar finally two prominent banking institutions. tunate. I applaud Mr. Roseman for his was erected, even though it makes no But the business side of Hart Hasten efforts to show that equal justice mention that most of the victims were is only part of the story. He is a devot­ under the law is not an empty phrase Jews. ed husband and father. This year he in this country.e Today, Babi Yar has become a and Simona celebrated their 22d wed­ symbol of a lost Jewish identity for ding anniversary. They have three Soviet Jewish dissidents. The Soviets lovely children, Renee, Barnard, and continue to rewrite history. According Joshua. to the National Conference on Soviet Hart Hasten's devotion to improving Jewry, a Soviet film was recently re­ the lives of others literally covers the leased abroad entitled "Babi Yar: The world. His involvement with philan- 26558 EXTENSIONS OF REMARKS September 29, 1983 thropic and educational organizations ed funds>. in the United States Postal Serv­ quarterly credits necessary for qualifi­ reaches from the heartland of Amer­ ice and the Postal Rate Commission, in cation. Therefore, the mandatory re­ ica to the Middle East. His work to im­ those units in the government of the Dis­ tirement provision may prevent some trict of Columbia having positions in the prove human understanding can best competitive service, and in those units of of the older judges from fully qualify­ be exemplified by his past member­ the legislative and judicial branches of the ing for social security coverage al­ ship on the National Conference of Federal Government having positions in the though they are required to pay into Christians and Jews. competitive service, and in the Library of social security up to age 70. I under­ Throughout his life, Hart Hasten Congress shall be made free from any dis­ stand any tampering with the social has been a good natured, but deter­ crimination based on age. security provisions is a politically sen­ mined competitor, whether in business Thus, the present status of Tax sitive issue, and I do not suggest or on the tennis courts he loves so Court judges, of whom several are rap­ amending those provisions. However, much. idly approaching the age of 70, is un­ amending the mandatory retirement I wish him and his family all the clear. provision in the Internal Revenue best in all their future endeavors.e In eliminating mandatory retire­ Code would appear to be a reasonable ment for employees generally, the solution. Then a judge would have the BILL TO ELIMINATE MANDATO­ Senate recognized that a new aware­ option of continuing on a salary basis RY RETIREMENT FOR TAX ness has developed concerning discrim­ and acquire the necessary credits. Fed­ COURT JUDGES ination against the elderly, and public eral district court judges do not have attention has focused on the inequity any upper age limit and almost with­ and lack of wisdom of mandatory re­ out exception are known to carry out HON. ROBERT T. MATSUI tirement. It further recognized that their duties efficiently and capably OF CALIFORNIA older employees may, in fact, be better well past the age of 70. To be sure, IN THE HOUSE OF REPRESENTATIVES employees because of experience and judges grow with age and experience. I Thursday, September 29, 1983 job commitment, and that an age limi­ further note that special trial judges e Mr. MATSUI. Mr. Speaker, in 1967 tation unfairly assumes that age alone of the Tax Court who hear small tax Congress passed the Age Discrimina­ provides an accurate measure of an in­ cases, deficiencies less than $5,000, as tion in Employment Act dividual's ability to perform work. See Federal employees in the competitive which prohibited discrimination in em­ Senate Report No. 95-493, 95th Con­ service, are exempt from mandatory ployment on account of age. It applied gress, 2d session 505-506 <1978>. The retirement. I would like to see the generally to individuals in the private express purpose of this legislation sup­ elimination of mandatory retirement sector. In 1974 Congress amended the ports the view that Tax Court judges for all Tax Court judges, and I believe ADEA to include within its scope Fed­ should likewise be exempt from man­ such a provision is entirely consistent eral, State, and local government em­ datory retirement. However, section with recent legislation. Indeed, it ap­ 7447 currently imposes amanda­ pears that it may be an inadvertent ployees, and in 1978 Congress further tory retirement age of 70 on Tax amended the ADEA by eliminating omission that Tax Court judges have Court judges. That section, which was not already been exempted.e mandatory retirement in Federal em­ enacted long ago, is effectively obso­ ployment. The legislative history lete in light of the intent and purpose makes it clear that Tax Court judges of the recent legislation prohibiting were intended at least by the House to A TRIBUTE TO 50 YEARS OF discrimination in employment solely EXCELLENCE be within the group of Federal em­ on account of age. Thus, I urge the ployees for which mandatory retire­ amendment of section 7447 to ment was eliminated. eliminate any mandatory retirement HON. JAMES J. FLORIO • • • Mandatory retirement would be imposed on Tax Court judges. OF NEW JERSEY eliminated for the great majority of jobs in This position is further supported by IN THE HOUSE OF REPRESENTATIVES the civil service, for positions in the foreign recent legislation. In 1981 Congress service, for tax court judges, District of Co­ Thursday, September 29, 1983 lumbia public school teachers, District of amended section 7443, Internal Reve­ Columbia judges, the United States Comp­ nue Code 1954, to eliminate the ban on • Mr. FLORIO. Mr. Speaker, I would troller General, and the Director of the initial appointments of individuals age like to take a moment of the House's Federal Judicial Center among others. How­ 65 or older as U.S. Tax Court judges. time to offer my congratulations to ever, the current provision in section 15 The reason for the change was that two constituents of mine who are cele­ which allows the Civil Service Commission such a ban conflicted with Federal brating a doubly special occasion. to establish maximum age requirements policies against age discrimination and This October 17, Mary and Joseph when such age is a bona fide occupational qualification necessary to the performance could deprive the Tax Court of experi­ Stafford will commemorate the 50th of job would remain • • • . This legislation and the rea­ N.J. exempt Tax Court judges; it refers sons behind it simply reflect congres­ Chubby's Restaurant, which is only to units of the legislative and ju­ sional concern that qualified and able owned and operated by the Stafford dicial branches of the Federal Govern­ judges should be allowed to continue family, has remained at its present lo­ ment having positions in the competi­ in the same capacity irregardless of cation since its opening a half century tive service; 29 U.S.C. 633. their age. Moreover, it would seem to ago. me highly unusual to allow the ap­ Since then, Chubby's has developed SEc. 633. Nondiscrimination on account of age in Federal Government employment. pointment of a Tax Court judge older a widespread reputation for its special Federal agencies affected. All person­ than 65 only to require him to retire steak dinners. During the peak years nel actions.. affecting employees or appli­ at age 70. of the nightclub era, Chubby's was cants for employment who are at least 40 One further note. Recent social se­ one of the most popular nightclub res­ years of age in military depart­ raise certain questions with respect to the famed Copacabana nightclub in ments as de'fined in section 102 of title 5, judges who stay on after retirement. New York City. Many of the Nation's United States Code <5 USC § 102), in execu­ tive agencies as defined in section 105 of Although retired pay is not salary for top entertainers appeared at Chubby's title 5, United States Code (5 USC§ 105)

Flight launch position Flight duration Termination Date number Missile Notes

August 3, 1979...... I FTM I ...... LP-2 ...... 44m 1 ••••••••••••••• •••••••••• • •• Impact...... Max lift data. September 6, 1979 ...... 2 FTM 2 ...... LP-2 ...... 4h, 9m ...... Mid air recovery (MAR) ...... Total success. September 25, 1979 ...... 3 FTM 3 LP-5 ...... 4h , 24m.. Soft landing ...... Cross country landing. 1 October 9. 1979 ...... 4 FTM 6 ...... LP-3..... lh. 47m ..••••• •••••••••• .•. FTS .. Fail-safe tone. November 21 , 1979 ...... 5 FTM 7 ...... R/L...... 2h, 33m 1 ...... Impact...... Engine. November 29. 1979 ...... 6 FTM 10 ...... R/L ...... :.. 4h, 25m...... Soft landing ...... Pacific launch. December 4. 1979 ...... 7 FTM 9...... LP-L ...... 4h, 20m ...... MAR ...... Survivability. December 18, 1979 ...... 8 FTM 4.... LP- 5...... 4h, 27m...... Impact fuzing ...... Maintainability. January 5, 1980 ...... 9 FTM 12 ...... LP-5 ...... 4h, 29m...... Soft landing ...... Production missile. January 22, 1980 ...... 10 FTM 5...... R/L...... 19m 1 ••••• •••• ••••••• •••••••••••• •• •••• •••••••• •• Impact ...... RCC software. June 12, 1980 ...... 11 FTM 15 ...... R/L ...... 4h, 7m ...... Impact...... Full rotary launcher. July 22. 1980 ...... 12 FTM 13 .. LP-4 ...... 3h. 25m 1 ...... •...... FTS ...... Engine oil pressure. August 21. 1980 ...... 13 FTM 8 ...... LP-4 ...... I h 4m 2 . ...•...... FTS...... Carbon buildup. October 23, 1980 ...... 14 AV 1...... RP-L ...... 3h, 33m...... Impact fuzing ...... First fiscal year 1978 missile. November 12, 1980 ...... 15 FTM 14...... LP-1...... 3h, 30m ...... MAR ...... Totally over water. November 20, 1980 ...... 16 FTM 9RL ...... LP- 6 ...... 8s 2 . • ..•.••.•..•• Pacific ...... Jettison. February 19, 1981...... 17 AV 2...... LP-3...... 34m 2 .••...•. • •..••••• Impact...... Fuel controller. March 25, 1981...... 18 FTM 14RL .... RP-6...... 3h, 52m ...... MAR ...... RCC, 1st production engine. April 16, 1981 ...... 19 AV 10 ...... RP-6...... 4h, lm...... Impact fuzing ...... 1st MRA. April 24, 1981 .. . 20 FTM lORI...... RP- 4.. 4h, 9m ...... MAR-almost ...... 1st Canadian INE. JP-1. April 30, 1981 ...... 21 FTM 12RL ...... RP-3...... 4h. Sm ...... MAR ...... Survivability. July 25. 1981 ...... 22 AV 9...... LP-2 .. 4h, 19m ...... Impact fuzing .. ············· ···········-····· 1st OAS, MRA. September 13, 1981 ...... 23 FTM 12RL. .... LP- 3...... 4h, 12m MAR...... Survivability. December 2, 1981 ...... 24 FTM 14RL. .... LP-4 .. 4h, 3m ...... Soft landing ...... Survivability. December II, 1981 ...... 25 FTM 12RS3.. LP-4 ...... 4h, lm MAR ...... Survivability. January 7, 1982 26 AV 8 ...... LP-6 ...... 4h, Sm ...... MAR ...... Pacific launch. January 27, 1982...... 27 AV 24 .. ... LP-2 ...... 3h, 57m...... MAR ...... Icing test August 10, 1982...... 28 AV 13 ...... LP- 6 ...... 3h, Sm 1 .....••..••••••••• ..•...••.••••••• Impact...... False fix. September 21 , 1982 ...... 29 AV 71...... LP-4.. 3h, 53m. Soft landing ...... Pacific launch. October I. 1982 ...... 30 FTM 12RL ...... LP-3 ...... 3h. 17m 1 ••••••••••••••• Hard landing ...... Pacific launch. 26562 EXTENSIONS OF REMARKS September 29, 1983

Flight number Missile Launch position Flight duration Termination Notes

October 10. 1982 ...... 31 AV 14 ...... LP-6 ...... 3h, 50m ...... MAR ...... Production Knollsman MRA. December 19, 1982 ··········································································· May 24, 1983 ...... June 14, 1983 ...... June 16, 1983 ...... = [f' : = June 23, 1983 ...... ~ 'J' : ~~~· - ~1i -it•'FO

• Partial success. 2 Failure. 3 Full successful operational test launch. Note: h=hours ; m=minutes ; s= seconds.e

EDUCATION SAVINGS ACCOUNTS the beneficiary over a 10-year period <4>. and subsection <2> shall each be in 10 equal parts. The legislation sets adjusted by multiplying .such amounts by aside 5 percent of the money placed in the inflation adjustment factor for the 12- HON. BARBARA A. MIKULSKI month period ending on July 31 of the pre­ OF MARYLAND these accounts for a State scholarship ceding calendar year and, as adjusted, shall IN THE HOUSE OF REPRESENTATIVES fund. be substituted for such amounts for taxable Such legislation could only be bene­ Thursday, September 29, 1983 years ending with or within the calendar ficial to all our attempts to make this year next beginning after such 12-month eMs. MIKULSKI. Mr. Speaker, time country one where education is a period. and time again, my constituents ask right, not a gift to the wealthy. Educa­ "(B) COMPUTATION OF INFLATION ADJUST­ me about the cost of college tuition. tion is the greatest gift we can give our MENT FACTOR.- The fundamental right to learn, to children, and our country. "(i) DETERMINATION AND PUBLICATION.­ make a better life for himself or her­ The bill follows: The Secretary shall, not later than October 1 of each calendar year <3» unless the taxpayer or skills. It is the responsibility of this to an education savings account established child- Government to make sure that the for the benefit of an eligible individual. " has attained the age of 21 before the funds will be there to teach those "(b) LIMITATIONS.- close of the calendar year for which the skills. "(1) ACCOUNT MAY NOT BE ESTABLISHED FOR contribution is made, or For these reasons, today I am re­ BENEFIT OF MORE THAN 1 INDIVIDUAL.-An " is enrolled as a full-time student at introducing a bill to amend the Inter­ education savings account may not be estab­ an eligible educational institution for more nal Revenue Code of 1954 to provide lished for the benefit of more than 1 indi­ than 4 weeks during that calendar year. vidual. "(2) EDUCATION SAVINGS ACCOUNT.-For for the establishment of, and the de­ "(2) INDIVIDUAL MAY NOT BE BENEFICIARY OF purposes of this section, the term 'education duction of contributions to, education MORE THAN 1 ACCOUNT.-An individual WhO is savings account' means a trust created or or­ savings accounts. the beneficiary of more than 1 education ganized in the United States exclusively for This bill is the result of a study done savings account during any calendar year the purpose of paying the educational ex­ by the Citizens League of Baltimore to shall not be treated as an eligible individual penses of an eligible individual, but only if determine additional ways to help stu­ for that calendar year. the written governing instrument creating dents and their families pay for higher "(3) MAXIMUM DEDUCTION PER ACCOUNT.­ the trust meets the following requirements. education. The citizens league has rec­ The amount allowable as a deduction under "(A) No contribution will be accepted subsection to an individual for amounts unless it is in cash, stocks, bonds, or other ommended a higher education invest­ paid or transferred to an account for any securities which are readily tradeable on an ment plan that is practical, adminis­ calendar year shall not exceed $2,000. established securities market, and contribu­ tratively simple, and economically "(4) CONTRIBUTIONS BY MORE THAN 1 tions will not be accepted for the taxable sound. PERSON.-If more than 1 individual makes year in excess of $2,000. Essentially, this legislation would contributions to an education savings ac­ "(B) The trustee is a bank No part of the trust assets will be in­ the student has graduated and then "(A) IN GENERAL.-Beginning in 1984, the vested in life insurance contracts . paragraph than contracts the beneficiary of which is September 29, 1983 EXTENSIONS OF REMARKS 26563 . the trust and the face amount of which does ship assistance to individuals attending eli­ standing the preceding sentence, any such not exceed the amount by which the maxi­ gible educational institutions within the account is subject to the taxes imposed by mum amount which can be contributed to State. section 511 . graph <2> with respect to any contribu­ "(2) LOSS OF EXEMPTION OF ACCOUNT WHERE " The assets of the account may he in­ tion not late than 30 days after the last day INDIVIDUAL ENGAGES IN PROHIBITED TRANSAC­ vested in accordance with the direction of prescribed by law for filing the return IN GENERAL.-If, during any taxable but, if more than one individual has made year- year of an individual who contributes to an contributions to the account, the consent of "(i) of the individual making the contribu­ education savings account, that individual all such individuals shall be required for any tion, and engages in any transaction prohibited by such direction. "(ii) within which the contribution was section 4975 with respect to the account, the " The assets of the trust will not be made or deemed to be made. account ceases to be an education savings commingled with other property except in a "(C) STATE TO WHICH MADE.-An individual account as of the first day of that taxable common trust fund or common investment making a contribution with respect to which year. fund. a transfer described in paragraph <2> is "(B) ACCOUNT TREATED AS DISTRIBUTING ALL "(F) Any balance in the account on the required shall designate the qualified State ITS ASSETS.-In any case in which any ac­ day before the date on which the individual educational fund to which such transfer count ceases to be an education savings ac­ for whose benefit the trust is established at­ shall be made. count by reason of subparagraph on the tains age 26 will be distributed on that date "(d) TAX TREAMENT OF DISTRIBUTIONS.­ first day of any taxable year, paragraph (1) to each of the individuals who have contrib­ "(1) IN GENERAL.-Except as otherwise pro­ of subsection (d) applies as if there were a uted to the trust in an amount which bears vided in this subsection, any amount paid or distribution on such first day in an amount the same ratio to such balance as such indi­ distributed out of an education savings ac­ equal to the fair market value with or within which does not apply to the distribution of any distributed to a qualified State educational the calendar year ends. contribution paid during a taxable year to fund or used in connection with the pay­ "(4) STOCK, ETC., TO BE VALUED AS OF TRANS­ an education savings account to the extent ment of educational expense$ of the individ­ FER DATE.-The fair market value of stocks, that such contribution exceeds the amount ual for whose benefit the account was estab­ bonds, and other securities shall be deter­ allowable as a deduction under subsection lished, the tax liability of each of the indi­ mined as of the date on which they are if- viduals who has contributed to the account transferred to the account. If the date of " such distribution is received on or for the taxable year in which such distribu­ transfer falls on a Saturday, Sunday, or before the day prescribed by law with respect to such excess contri­ "(2) DISQUALIFICATION CASES.-If an ties market. bution, and amount is includable in the gross income of "(5) EDUCATIONAL EXPENSES.-The term " such distribution is accompanied by an individual for a taxable year under sub­ 'educational expenses' means- the amount of net income attributable to section , his tax under this chapter for " tuition and fees required for the en­ such excess contribution. such taxable year shall be increased by an rollment or attendance of a student at an el­ Any net income described in subparagraph amount equal to 10 percent of such amount igible educational institution. shall be included in the gross income of required to be included in his gross income. " fees, books, supplies, and equipment the individual for the taxable year in which "(3) DISABILITY CASES.-Paragraphs (1) required for courses of instruction at an eli­ it is received. and <2> do not apply if the payment or dis­ gible educational institution, and "(3) QUALIFIED DISTRIBUTIONS INCLUDED IN tribution is made after . the taxpayer be­ " a reasonable allowance for meals and BENEFICIARY'S INCOME OVER 10-YEAR PERIOD.­ comes disabled within the meaning of sec­ lodging. The gross income of an individual for whose tion 72<7>. "(6) ELIGIBLE EDUCATIONAL INSTITUTION.­ benefit an education savings account was es­ "(g) COMMUNITY PROPERTY LAWS.-This The term 'eligible educational institution' tablished for the taxable year in which that section shall be applied without regard to means- individual attains age 25 and for each of the any community property laws. " an institution of higher education, or 9 succeeding taxable years shall be in­ "(h) CUSTODIAL ACCOUNTS.-For purposes "(B) a vocational school. creased by 10 percent of the sum of the of this section, a custodial account shall be "(7) INSTITUTION OF HIGHER EDUCATION.­ amounts paid or distributed out of the ac­ treated as a trust if the assets of such ac­ The term 'institution of higher education' count which were used exclusively to pay count are held by a bank or 49l of the Higher Education individual. onstrates, to the satisfaction of the Secre­ Act of 1965. "(4) AMOUNTS TRANSFERRED TO QUALIFIED tary, that the manner in which he will ad­ "(8) VOCATIONAL SCHOOL.-The term 'voca­ STATE EDUCATIONAL FUNDS.-The gross minister the account will be consistent with tional school' means an area vocational edu­ income of any individual shall not be in­ the requirements of this section, and if the cation school as defined in section 195(2) of creased by reason of any amount paid or dis­ custodial account would, except for the fact the Vocational Education Act of 1963 which tributed out of an education savings account that it is not a trust, constitute an education is in any State . amount is required to be so paid or distrib­ For purposes of this title, in the case of a "(9) Special rules relating to transfers to uted under subsection <2>. custodial account treated as a trust by qualified state educational fund.- "(e) TAX TREATMENT OF ACCOUNTS.- reason of the preceding sentence, the custo­ "(A) QUALIFIED STATE EDUCATIONAL FUND.­ "( 1) EXEMPTION FROM TAX.-An education dian of such account shall be treated as the The term 'qualified State educational fund' savings account is exempt from taxation trustee thereof. means a fund established by State law or under this subtitle unless such account has "(i) REPORTS.-The trustee of an education the chief executive officer of a State the ceased to be an education savings account savings account shall make such reports re­ assets of which are used to provide scholar- by reason of paragraph <2> or (3). Notwith- garding such account to the Secretary and 26564 EXTENSIONS OF REMARKS September 29, 1983 to the individual for whose benefit the ac­ (f) FAILURE To PROVIDE REPORTS ON EDU· A SALUTE TO MARION GENE count is maintained with respect to contri­ CATION SAVINGS ACCOUNTS.-Section 6693 of CLEMONS butions, distributions, and such other mat­ such Code by inserting "OR EDUCATION SAVINGS AC· OF OHIO such manner and furnished to such individ­ COUNTS" after "ANNUITIES" in the caption of uals at such time and in such manner as such section, and IN THE HOUSE OF REPRESENTATIVES may be required by those regulations.". <2> by adding at the end of subsection Thursday, September 29, 1983 (b) DEDUCTION ALLOWED IN ARRIVING AT the following: "The person required by sec­ ADJUSTED GROSS INCOME.-Paragraph (10) of tion 223 to file a report regarding an edu­ e Mr. STOKES. Mr. Speaker, I take section 62 of such Code by inserting "or education" after "Re­ manner required by such section shall pay a tirement" in the caption of such paragraph, penalty of $10 for each failure unless it is God in Christ in Akron, Ohio, in salut­ and .. shown that such failure is due to reasonable ing Mrs. Marion Gene Clemons. On <2> by inserting before the period at the cause."; Saturday, October 1, the church mem­ end thereof the following: "and the deduc­ (g)(l) The table of sectionS for part VII of bers and other friends of Mrs. Cle­ tion allowed by section 223 ". section 223 and inserting in lieu thereof the following: fitting tribute to a Christian woman (C) TAX ON EXCESS CONTRIBUTIONS.-Sec­ who has a special place in the hearts tion 4973 of such Code con­ "Sec. 224. Cross references." with her. tracts, certain individual retirement annu­ <2> The table of sections for chapter 43 of I ask my colleagues, at this time, to ities, and certain retirement bonds> is such Code is amended by striking out the join with me in sending congratula­ amended- item relating to section 4973 and inserting tions to Mrs. Clemons on an excep­ <1> by inserting "EDUCATION SAVINGS AC· in lieu thereof the following: tional career of service to her church, COUNTS," after "ACCOUNTS," in the caption Of "Sec. 4973. Tax on excess contributions to community, and family. such section, individual retirement accounts, Marion Gene Clemons is the wife of <2> by redesignating paragraphs <2> and education savings accounts, <3> of subsection as <3> and <4>. and by Rev. Burton D. Clemons, pastor of the inserting after paragraph <1> the following: certain 403 contracts, cer­ Tower of Prayer Church of God in "(2) an education savings account by adding at the end thereof the fol­ great church in Akron. I am sure that lowing new subsection: (3) The table of sections for subchapter B Reverend Clemons would agree with "(d) EXCESS CONTRIBUTIONS TO EDUCATION of chapter 68 ·of such Code ·is amended by SAVINGS AccouNTs.-For purposes of this striking out the item relating to section nie in saying that his lovely wife has section, in the case of an education savings 6693 and inserting in lieu thereof the fol: been his primary supporter in the account, the term 'excess contributions' lowing: church and during his entire 25 years means the amount by which the amount in the ministry. contributed for the taxable year to the ac­ "Sec. 6693. Failure to provide reports on in­ She has worked tirelessly and eager­ count exceeds the amount allowable as a de­ dividual retirement accounts or annuities or on education sav­ ly in promoting the program of the duction under section 223 for such tax­ church within the membership and able year. For purposes of this subsection, ings accounts." any contribution which is distributed out of <1> Part III of subchapter B of chapter throughout the community. She has the education savings account and a distri­ 1 of such Code is amended by within the Tower of Prayer Church of shall be treated as an amount not contribut­ redesignating section 130 as section 131 and God in Christ. ed.". by inserting after section 129 the following She produces the church bulletins (d) CONTRIBUTION NoT To BE TREATED AS A new section: and coordinates a cadre of church pro­ GIFT FOR GIFT TAx PuRPosEs.-Section 2503 "SEC. 130. EDUCATION SAVINGS ACCOUNT DISTRIBU­ grams. Her unceasing imput has en­ of such Code shall not be consid­ she been an advocate for her husband ered a gift of a future interest in property to section 223(c)(5)).". the extent that such payment is allowed as (2) The table of sections for such part III and the church, but also an innovator a deduction under section 223. ". is amended by inserting after the item relat­ and leader in her own right. Mrs. Cle­ (e) TAX ON PROHIBITED TRANSACTIONS.­ ing to section 129 the following new items: mons developed many programs Section 4975 of such Code is amended- butions. tradition. Her weekly sermonette for <1> by adding at the end of subsection (c) "Sec. 131. Cross references to other Acts." the children in the church called the following new paragraph: Subsection (b) of section 152 of such Brown Bag has gained notoriety "(4) SPECIAL RULE FOR EDUCATION SAVINGS throughout the community and the AccouNTs.-An individual for whose benefit Code is an education savings account is established amended by adding at the end thereof the city. She also founded and currently shall be exempt from the tax imposed by following new paragraph: serves as the chairwoman of the Min­ this section with respect to any transaction " (6) A payment to an individual for whose isters' Wives Auxiliary which sponsors concerning such account <2> to such account.", and determining support for purposes of this walls of the Tower of Prayer Church. (2) by inserting "or an education savings section.". A 20-year resident of my district in account described in section 223(c)" in sub­ (j) The amendments made by this section Shaker Heights, Mrs. Clemons is section (e)(l) after "described in se.ction shall take effect with respect to taxable known throughout the community for 408(a)". years beginning after December 31, 1983.e her dedication to her neighbors and September 29, 1983 EXTENSIONS OF REMARKS 26565 particularly to the young people in In addition to her demanding sched­ been a role model in her church, com­ her area. Her volunteer efforts and co­ ule in serving the church and her com­ munity, and family. She is a rare and ordination of groups of volunteers has munity, Mrs. Marion Gene Clemons is good human being. I ask my colleagues earned Mrs. Clemons recognition from a dedicated wife and mother of seven to join me in saluting Mrs. Clemons on many groups. She has gained a signifi­ children. Mr. Speaker, she has in­ this momentous occasion.e cant amount of attention for her ef­ stilled in each of her children a love forts as a mathematics and English for God and mankind. tutor for children with learning dis­ In closing, Mr. Speaker, in my esti­ abilities. mation, Marion Gene Clemons has