5744 CONGRESSIONAL RECORD-HOUSE March 16, 1992 HOUSE OF REPRESENTATIVES-Monday, March 16, 1992 The House met at 12 noon and was minute and to revise and extend his re­ The Nation depends on the men and called to order by the Speaker pro tem­ marks.) women of the FBI, and of all law en­ pore [Mr. MONTGOMERY]. Mr. MAZZOLI. Mr. Speaker, I had forcement agencies. The killing of probably one of the most dismaying Agent Ronquest reminds us of the grat­ DESIGNATION OF SPEAKER PRO and depressing weekends of my life, itude we owe all law enforcement offi­ TEMPORE certainly of my professional life as a cers. Member of Congress, this past weekend Public service is a noble calling, and The SPEAKER pro tempore laid be­ when I went home and talked with my law enforcement is one of the noblest fore the House the following commu­ constituents about the House bank de­ forms of public service. nication from the Speaker: bacle. Mr. Speaker, I am sure you and all WASHINGTON, DC, CertaJnly the people have a feeling of the Members join me in sending our March 13, 1992. betrayal, and they have a feeling of condolences to the family of Stanley I hereby designate the Honorable G.V. lack of respect for this Congress and Ronquest. He died working to make (SONNY) MONTGOMERY to act as Speaker pro ternpore on Monday, March 16, 1992. this body. this a better, safer Nation. We can all THOMAS S. FOLEY, A step forward to regaining their re­ find inspiration in his commitment. Speaker of the House of Representatives. spect and to reviving the feeling that this service in Congress is a truly hon­ orable pursuit in behalf of the public COMPLIMENTING THE SPEAKER PRAYER good is to have done what we did the ON SELECTION OF ACTING SER­ The Chaplain, Rev. James David other night, and that is to demand a GEANT AT ARMS Ford, D.D. offered the following prayer: full disclosure of all the people who (Mr. LEACH asked and was given per­ With earnestness of heart, O gracious have misused the bank. mission to address the House for 1 God, and with a diligence of our will, Mr. Speaker, we need to go further, minute and to revise and extend his re­ we pray that we will see more clearly we need to reorganize the House, and marks.) the requirements of those who have the way it does business. We have to Mr. LEACH. Mr. Speaker, as the great need. May our focus be on serving try to get rid of all the patronage and House knows from all the discussion those who live in poverty or distress, perks and the other things which cause last week, we live in a fishbowl; but it on those who cannot support them­ people to feel we are a privileged class. is very important that we not act like selves and their families, on those who We must make sure that the drug epi­ piranhas. are ill and need care. Encourage us, 0 sode in the post office is fully and vig­ In this regard, I simply rise today to God, to hear Your strong word to us so orously prosecuted by outside forces if compliment the Speaker of the House we will do those things that bind us to­ necessary, but more than that, Mr. for the selection of Werner Brandt as gether as one people and bring us into Speaker, you must demand that the our acting Sergeant at Arms. a unity of purpose and strength. Bless conference begin to meet on campaign I worked in the same office with Wer­ us this day and every day, we pray. reform. Until we eliminate political ac­ ner for almost 2 years in the Depart­ Amen. tion committee funds or the influence ment of State, where we shared similar they bring to bear in the political sys­ assignments as fellow Foreign Service tem, until we limit the amount of THE JOURNAL officers. spending that can be done in Federal I consider Mr. Brandt to be a man of The SPEAKER pro tempore. The campaigns, we will always have the extraordinary ability, extraordinary Chair has examined the Journal of the politics of this Nation run by money, competence, as well as very high val­ last day's proceedings and announces not by people. ues. The House is and has been f ortu­ to the House his approval thereof. We want the people back in the sys­ nate to be so well served. Pursuant to clause 1, rule I, the Jour­ tem, Mr. Speaker. You have the oppor­ Whether or not the minority was nal stands approved. tunity to cause it by demanding a con­ consulted in the choice of Mr. Brandt, ference on campaign reform. The soon­ I would say without equivocation that PLEDGE OF ALLEGIANCE er the better. if this Member of the minority had The SPEAKER pro tempore. The . been asked, I would have noted that a better selection by the Speaker could Chair will ask the gentleman from TRIBUTE TO SLAIN FBI AGENT California [Mr. EDWARDS] if he would not have been made. kindly come forward and lead the (Mr. EDWARDS of California asked By background, Brandt was one of membership in the Pledge of Alle­ and was given permission to address the State Department's leading politi­ giance. the House for 1 minute and to revise cal/military affairs specialists. He was Mr. EDWARDS of California led the and extend his remarks.) on a star track in the Foreign Service Pledge of Allegiance as follows: Mr. EDWARDS of California. Mr. before coming to Capitol Hill in the Speaker, I rise to pay tribute today to I pledge allegiance to the Flag of the Unit­ early 1970's as a congressional fellow. ed States of America, and to the Republic for FBI agent Stanley Ronquest, killed Today, he is a true legislative profes­ which it stands, one nation under God, indi­ last week in Kansas City in a holdup sional. I am confident he will be fair to visible, with liberty and justice for all. attempt. the minority, and more importantly, The work of FBI agents ranges from serve the public honorably in his new the tedious to the dangerous. It in­ position. ACTION TO REFORM HOUSE PRO­ volves many sacrifices and places hard­ The choice by the Speaker of Werner CEDURES NEEDED IN WAKE OF ships on agents' families. Special Brandt to serve as Sergeant at Arms is THE HOUSE BANK DEBACLE Agent Ronquest was away from home a good first step in establishing credi­ (Mr. MAZZO LI asked and was given when he was killed. He was assigned to bility in the administration of the permission to address the House for 1 FBI headquarters. House.

DThis symbol represents the time of day during the House proceedings, e.g., D 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5745 HOUSE BANKING SCANDAL A to tell you that each time I go to Wyo­ Congress bundles together all kinds of BIPARTISAN MESS ming, and I just returned yesterday, I things that you have real reluctance or (Mr. RICHARDSON asked and was met on Friday afternoon, as I do with it is impossible to vote against the given permission to address the House a number of people, in this case from total bill because there are good things for 1 minute and to revise and extend Rock Springs, WY. The thing that is there, things everyone wants, but his remarks.) mentioned most often is the overbur­ tucked in it, of course, are these kinds Mr. RICHARDSON. Mr. Speaker, the den of regulation. We are concerned, of pork barrel items. House banking scandal is a bipartisan and properly, about the economy. We The only person who can do anything mess. Yet, there are some that may be are concerned about providing jobs. about it is the President with a line trying to make some political hay out Jobs come in the private sector. Jobs item veto. We cannot seem to get a of a tragedy for this institution. are created in the private sector, and constitutional line item veto, which is Some very interesting things have yet I think it is certain that we have my preference and is what we really happened in the past few days, first, an overburdened the private sector with ought to do. There are some other ways unconscionable leak to the Washington regulatory problems. Some of them are that we can do it in terms of rescis­ Times detailing the code numbers of 66 in the banking area. Some of them sions and bring those rescissions right House Members. I do not know of any have caused or continue to cause a up on the floor and vote on those is­ Democrat that reads the Washington shortage of credit and the credit sues. Lots of those issues that are pork Times. crunch. Others in my part of the coun­ barrel hidden in these bills would not Second, this weekend there was an­ try have to do with the oil industry. stand on their own if we provided a other unconscionable leak naming the We have almost lost domestic explo­ vote for them on this floor, and I am worst offenders. Interestingly, only the ration in Wyoming, mostly because of for that. Democrats were in that leak. regulatory burdens and costs. We have Mr. Speaker, we need some fun­ Third, and perhaps the most regret­ driven major companies to go into the damental change. We are not happy table, was a personal attack by the mi­ foreign markets. with the economy. We are often not nority whip on the Speaker of the Agriculture-I could go on and on. happy with education. We are not House, a man whose integrity and rep­ It seems to me that clearly we have happy with crime, and yet we continue utation is beyond reproach. to have regulations, but we need a bal­ to do more of the same thing we have Mr. Speaker, this is a time for us not ance. We need a balance between the been doing and expect things to to tear each other apart but to come regulatory protection that is required change. together. This institution needs re­ and what we can do in the economic Mr. Speaker, it is time we made some building, not more recriminations. field. fundamental changes in this House. I think when regulations are put into place, we have an environmental im­ 0 1210 pact statement. We ought to have in AN ENVIRONMENTAL CRISIS The SPEAKER pro tempore. Under a FUNDAMENTAL ECONOMIC this case an economic impact state­ ment as to what will be the cause and previous order of the House, the gen­ CHANGE NEEDED result of the regulations that we have tleman from California [Mr. EDWARDS] The SPEAKER pro tempore (Mr. put on. is recognized for 5 minutes. SKAGGS). Under a previous order of the Second, the President has asked for a Mr. EDWARDS of California. Mr. House, the gentleman from Wyoming ceiling on Federal employees. I have a Speaker, I am speaking to my col­ [Mr. THOMAS] is recognized for 5 min­ bill that I introduced last year that leagues today because we are currently utes. would put a ceiling on. It would allow in the midst of an environmental cri­ Mr. THOMAS of Wyoming. Mr. flexibility. It would allow people to be sis. Speaker, I appreciate the opportunity changed from one priority to another. This crisis is the result of a steady to take a few minutes. I have been It would not call for any reduction in decline in the Nation's wetlands habi­ talking in this House for some time current employees. It would simply tat that has been quietly taking place about change. It seems to me that fun­ have a reduction by attrition, and it over the years. damental change is something that we would put a limit on the growth of the Two hundred years ago, this Nation need to undertake. size of government. had 221 million acres of wetlands. We cannot continue to do things as Indexing capital gains for inflation. Today, that figure has been cut in half. we have been doing them, do more of There is very little reason why an in­ This translates into losses of nearly what we have been doing and expect vestor, someone who puts his money 300,000 acres each year, 60 acres every things to change. There are a number into something that creates a job and hour or 1 acre every minute. of things that the President can do if at the end of the time has a profit and For some, these losses are not fast he is unable to get the cooperation of has to pay taxes on that portion of it enough. A well-organized movement Congress. We will find out on the 20th that is simply inflation. Surely we has developed over the last year, con­ of March whether or not this Congress ought to be able to index inflation to sisting of oil and gas companies, min­ has responded to the President's re­ encourage investment. We are the only ing companies, and developers, that is quest for seven times to increase the industrialized country in the world seeking to roll back existing protec­ economic activity in this country. that has an ordinary capital gains tax tions so that wetlands can be destroyed The Washington Times, and some of on profits made through investment. . and developed more quickly. In the us do read the Washington Times, had Finally, a line item veto. I am per­ past year, several pieces of legislation an editorial yesterday and several of suaded there is no way in the world have been introduced which would have the items seerri to me to be important that we will ever control spending in a devastating impact on wetlands if en­ with regard to change, and I would like this Congress unless we have a line­ acted. Proponents of these bills claim to talk about them for just a minute. item veto. We had it in my State when they are looking for balance in the reg­ One has to do with regulation and I was in the legislature. Forty-three ulatory process. However, they define regulatory burdens. States I believe have it. balance as relaxing regulations in favor The second has to do with control on It simply politically is not possible of big business to the extent that only the size and growth of Government. for a Member from a district to vote the wettest and most widely recognized The third is indexing gains for infla­ against those kinds of things that go to wetlands shall be allowed to remain tion. their districts. The President is the protected. And the fourth is the line-item veto. only person in the country who has a In addition to legislation, President The President has put into place a 90- broad enough political base to take Bush has abandoned his "no net loss of day moratorium on regulations. I have pork barrel stuff out of a bill. This wetlands" pledge in favor of a policy 5746 CONGRESSIONAL RECORD-HOUSE March 16, 1992 that would accelerate wetlands losses. lining the effects on wetlands of the tion, she was a charter member of the The Bush administration proposed re­ permit activity. Mount Vernon chapter of the NAACP visions to the Federal Wetlands Delin­ It asks for an independent study and is involved with several seniors eations Manual that would drastically within 1 year by the National Academy centers. Indeed, Cleopatra Hamlin Par­ change ·the definition of wetlands, of Science on the proper methodology son is working to leave no one behind. causing many wetlands to be dropped for identifying and delineating wet­ Robena Ambrose Cotten, also of from Federal protection. Field testing lands. Mount Vernon, celebrated her llOth by Federal agencies are showing these For small parcels of 1 acre or less it birthday last year. She was recognized revisions could cause 50 to 70 percent of provides a fast-track Team, whose job by Mount Vernon Hospital for her spe­ highly valuable wetlands to become un­ it is to give 60-day service. cial contributions. Her many years of protected. It protects farmers by maintaining teaching and work at the hospital have In response to this environmental present law. We don't interfere with certainly provided a source of comfort crisis, I have introduced H.R. 4255, the normal farming practices. and inspiration to thousands who have· Wetlands Reform Act of 1992. This bill 0 1220 turned to the hospital in difficult will offer relief to the small private times. And, yes, Robena Ambrose landowner by refarming the regulatory This bill has the support of all the Cotten has done her part to leave no process, but not sacrifice wetlands in key environmental organizations. The one behind. the process. National Wildlife Federation, the Au­ Marcia Marie Brown has always put Why is it so important to save our dubon Society, the Sierra Club, the Na­ others before herself. She has worked wetlands? Because we have come to :re­ tional Resources Defence Council, tirelessly on behalf of our youth. She alize that wetlands provide many im­ Friends of the Earth, Clean Water Ac­ has targeted at-risk youth through Op­ portant functions. They act as excel­ tion, the Izaak Walton League of eration Clean Sweep and the literacy lent flood control buffers, recharge America, Trout Unlimited, the Amer­ program for youthful offenders. Also, ground water supplies, provide des­ ican Oceans Campaign and the Cam­ Marcia's commitment has been crucial perately needed habitat for fish and paign to save California Wetlands are in the development of the Girl Scouts wildlife, including one-third of the all committed to fully supporting this of Westchester. She was one of the world's threatened and endangered spe­ bill. founding members and served as vice cies. In addition, wetlands boost the It is vitally important that Congress president of the Girl Scouts of West­ quality of life of a region and create a demonstrate its deep concern over wet­ chester-Putnam. Her dedication was more favorable business climate. lands. I urge you to cosponsor the Wet­ recognized with the Thanks Badge, Ironically, some of the qualities lands Reform Act and signal your com­ their highest honor, and she continues which make wetlands so attractive mitment to insuring that future gen­ to work with young girls as a troop have also contributed to their demise. erations will be able to enjoy the bene­ leader. We are grateful to her for her Wetlands tend to be prime real estate fits of wetlands we take for granted consistent belief in our children and locations, and for developers they rep­ today. her willingness to afford these youth resent opportunities for short-term the opportunity to achieve. Marcia profit. Wetlands also sustain many ex­ THE NATIONAL COUNCIL OF Marie Brown has committed herself to ploitable resources, such as oil and gas NEGRO WOMEN HONORS FOUR leaving no one behind. reserves. SPECIAL WOMEN OF WEST­ Dr: Olivia Hooker wanted to serve But the filling and draining of wet­ CHESTER her country and refused to give up lands is having a devastating impact when prejudice would have denied her on the environment and our lives. The SPEAKER pro tempore. Under a the opportunity. She became the first There are too many examples around previous order of the House, the gentle­ African-American SPAR in the U.S. the country of residential homes suf­ woman from New York [Mrs. LOWEY] is Coast Guard in World War II and in fering severe flooding as a result of recognized for 5 minutes. that capacity she has been an impor­ nearby wetlands being filled. In my Mrs. LOWEY of New York. Mr. tant role model for many African­ home State of California, heavy rains Speaker, it is an honor to join with the American women in our community. have caused millions of dollars in flood National Council of Negro Women in Not only did she nobly serve her coun­ damage and even some deaths-all of honoring four very special women of try, but she has earned many academic which could have been avoided through Westchester. These women exemplify honors through her work as a psycholo­ better land use practices which utilized the National Council of Negro Women's gist. Again, she has served as an inspi­ wetlands instead of destroying them. devotion to Mary McLeod Bethune's ration to others to pursue educational Wetlands-dependent wildlife have commitment to "leaving no one be­ opportunities as a means of strength­ also suffered enormously from the de­ hind." The International Division is ening their ability to help others. In so struction of their habitat. Waterfowl committed to enhancing women's eco­ doing, she has worked to ensure that and fish populations have plummeted, nomic and social well-being in Africa our society does its best at leaving no with further declines anticipated. and the Caribbean and to representing one behind. H.R. 4255 responds to a need for a major black women's organizations. Mr. Speaker, I salute these women strong wetlands protection bill. As we celebrate Women's History for the strength of their convictions It keeps the authority to issue per­ month, we pay tribute not only to this and for their outstanding accomplish­ mits in the Army Corps of Engineers, fine organization that has brought so ments. Thanks to them, fewer in our and except in extraordinary cir­ many women together in pursuit of society are being left behind. cumstances the decision on the permit such lofty goals, but also to the out­ must be rendered in 90 days. standing women who have tirelessly The Environmental Protection Agen­ served others through their work with REGULATION OF INTERNATIONAL cy, EPA, retains its veto power. the council. MONEY It gives the Fish and Wildlife Service I am pleased to honor Cleopatra Mr. GONZALEZ. Mr. Speaker, today and the National Marine Fisheries Hamlin Parson of Mount Vernon, I will continue, of course, the discus­ Service a stronger role in the permit whose musical talent is well known. sions because of the pending nature of process. She moved to Mount Vernon with her the need of legislation to get some con­ It tightens up the entire nationwide family and quickly took an active role trol, which we really never had had, permit process so that loopholes are within the community. She joined the none of our regulatory agencies, over eliminated. AME Zion Church and has devoted her this tremendous amount of inter­ It requires a report to Congress each talents to the choir, the adult Bible national money, so-called inter­ 2 years by the Corps of Engineers out- class, and the Sunday school. In addi- national money that amounts to about March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5747 $800 billion, even as I speak here, float­ policy prior to the invasion of Kuwait hurdle was actual access to the docu­ ing around where just a small portion on August 2, 1990. The meeting was ments. of it can be highly leverageable for chaired by Nick Rostow, the general 0 1230 such things as anything from arma­ counsel to the National Security Coun­ ments procurement indirectly through cil. Mr. Rostow's previous experience Under this scheme, before an agency other banks and such things as drug includes playing a key role in the could provide access to its documents, money laundering. White House efforts to cover up the it was supposed to get a clearance from It is a great necessity that we must Iran-Contra scandal, which still needs the Rostow gang. The April 8 memo continue. We must also report what the to be exposed. states, and I quote: Committee on Banking, Finance and Also attending was President Bush's When access to documents may be rec­ ommended, such recommendation should be Urban Affairs has had to confront with­ general counsel, Boyden Gray. Other circulated to this group for a clearance. in the last 2 years that we have been on persons at the meeting included the This delay mechanism also gave the this subject matter. There has been an top lawyers for the Departments of National Security Council the power to absence of great concern expressed. But Justice, Defense, State, Treasury, influence an agency's decision to pro­ nevertheless that should not deter us Commerce, Agriculture, Energy and vide access to documents. from the fact that this Nation does not the CIA. Each of their agencies had re­ The next hurdle in the chain discour­ have-and it is the only Nation defined ceived requests for information from aged committees from obtaining phys­ as a modern industrialized Nation that the Congress and the lawyers who were ical possession of Iraq-related docu­ does not have-any kind of screening responsible for overseeing the collec­ ments, thus making it impractical to board or any real regulatory control tion and the submission of the informa­ conduct an investigation. The April over the financial and banking activi­ tion to the Congress. I will refer to this memo states, and I quote again: ties of other countries in our own. high-level legal team as the "Rostow A recommendation to provide · access We did amend the 1978 international gang.'' should be restricted to members only, sub­ banking law somewhat, this last No­ Ostensibly, the function of the group ject to these conditions. No document may vember in the Banking Act which we was to review documents and informa­ be retained. Notes may be taken, but should approved. But it is not enough. tion applicable to congressional re­ be marked for classification by the depart­ It was compromised, as all these have quests for Iraq-related information and ment or agency in question. been. My personal relationship with to establish a coordinated approach for As this quote indicates, the NSC even this is that the 1978 In.ternational the dissemination of that information. wanted to make it difficult for Mem­ Banking Act, which was the first one A memo obtained by the committee bers of Congress to look at Iraq-related in the history of our Congress to direct explains the overt function of the Na­ documents. Agency lawyers used this legislation, was born out of the 1975 tional Security Council process as fol­ hurdle, limit access to documents, by hearings that, after a lot of pushing lows, and I quote: insisting that investigators not retain and shoving, I managed to get in my The NSC is providing coordination for the documents that they were permitted to home district of San Antonio. And it Administration's response to congressional review on the agency's premises. was as a result of the startling revela­ document requests for Iraq-related mate­ The remedy to the Rostow bank proc­ tions that those hearings brought out rials. The process is intended to be a cooper­ ess is, of course, subpoena power, but that we ended up 3 years later with the ative one. even faced with subpoenas, the admin­ minimal, or less than minimal, 1978 While on the surface it appears the istration has refused to turn over docu­ International Banking Act. Rostow gang was created to assure co­ ments to the Congress; that is, to the In those 1975 hearings, which inciden­ operation with congressional investiga­ committee and, thereby, the Congress. tally I will tell my colleagues if you tions in relation, it gave the White We follow the rules, and the rules man­ are interested, I believe we still have House a direct hand in regulating the date that, before a committee can issue some copies of the printed hearings; we flow of information to the Congress, subpoenas, it has to have the vote of can see since 1975 what now has been thus limiting oversight of Iraq policy. the majority, and we not only had the the big national headache, not only the The Rostow gang established a proc­ majority, we had a total consensus of banking and other financial institu­ ess whereby a congressional investiga­ the membership of the Committee on tions scandals as such but the dilem­ tion had to hurdle a series of increas­ Banking and Urban Affairs in issuing mas confronting our entire industry ingly difficult barriers in order to ob­ those documents which I have referred and the serious, and critical condition tain information from an executive to before. Committees that did not in which our country's financial insti­ branch agency. seek the authority to use subpoena tutions find themselves. The first step required an agency's power to conduct investigations that The fact that the perception still is lawyers to review and inventory all were directed were much less of a not there does not decry the fact that congressional requests for information, threat to the Rostow gang. Without it is. in order to determine if documents subpoena power a congressional com­ So, today, I will report on the secret could be denied on the basis of execu­ mittee that jumped all the hurdles, mechanism used by the Bush White tive privilege. elected to limit their access to docu­ House to frustrate, evade, and stifle The Committee on Banking was de­ ments, was often denied the documents congressional investigations of its nied certain important documents on it requested. Committees that voted to failed Iraq policy. this basis, and these document requests authorize the use of subpoenas found I have already brought out ad infini­ were on the basis of over 100 subpoenas documents more readily available. tum for almost 2 years the lamentable for documents that our Committee on However in the case of the Commit­ use of the guarantees backed by tax­ Banking had issued and still has out­ tee on Banking, Finance and Urban Af­ payers, of course, that led to such a standing. fairs, even though it had served a sub­ shameful and catastrophic policy, to The next hurdle involved denying poena on one agency, important relat­ the detriment of our national interest. documents to committees and, instead, ed materials are still being withheld; The White House created this mecha­ offering briefings for Members and that is, related to the Iraq question. In nism to cover up embarrassing and po­ their staffs. In that way, an agency was addition, the Committee on Banking, tentially illegal activities of persons able to put its own spin on its actions, Finance and Urban Affairs found that and agencies responsible for the United without congressional staff or Members several agencies conveniently could States-Iraq relationship. being able to question the veracity of not locate documents the committee In April of 1991 the National Security the agency's statements. had requested and had spelled out a full Council's legal adviser called a high­ If the congressional committee that description in our subpoena. level interagency meeting to discuss jumped the first two hurdles still in­ The following quote from a Com­ congressional investigations of Iraq sisted on receiving documents, the next merce Department letter sheds light on 5748 CONGRESSIONAL RECORD-HOUSE March 16, 1992 how the administration planned to co­ requested Iraq relate export licensing committee, and NSC staff lawyers ac­ operate with Congress. In February materials from the Commerce Depart­ tually took physical possession of var­ 1991, a letter to the top lawyer at the ment. The Commerce Department ious Commerce Department docu­ Commerce Department, the former eventually provided export licensing ments. On top of that, the Commerce Under Secretary for Export Adminis­ information to the subcommittee, but Department lawyers did not prepare a tration, stated, and I quote, "In sum press reports began to surface indicat­ control list for the documents so it the printout provided Mr. BARNARD"; ing that certain export information could keep track of which licensing Mr. BARNARD happens to be chairman, had been deleted prior to being submit­ records they had supplied to the NSC. the gentleman from Georgia [Mr. · BAR­ ted to the Congress. The committee has also been in­ NARD], of a congressional committee of In February 1991, the Commerce De­ formed that prior to the submission of the Committee on Government Oper­ partment's general counsel, who hap­ the export licensing records to the Con­ ations; "is a summary reference docu­ pens to be a member of the Rostow gress, the NSC staff had numerous con­ ment. The printout is also consistent gang, asked the former undersecretary tacts with the General Counsel of the with fifth floor." Well, that is Sec- of the Bureau of Export Administra­ Commerce Department as well as the . retary Mosbacher's officer. That is the tion, Dennis Kloske, to investigate general counsel of thff BXA, the export fifth floor is the Secretary's office press allegations that export licenses licensing bureau. floor. "Guidance and requests from were deleted from Commerce Depart­ Given that the NSC was instrumental both State Department and the Na­ ment files. In late February Mr. Kloske in setting the export policy toward tional Security Council is that no addi­ reported that in fact changes had been Iraq, it had a strong political motive to tional information be provided that made to the export licensing informa­ mislead the Congress as to the military does not directly address the commit­ tion. As a result of Mr. Kloske's find­ nature of goods sent to Iraq. It did not tee's request." ing, the general counsel wrote the want the public to know that the Translating this memo, "the fifth Commerce Department inspector gen­ White House had provided aid to the floor," "the National Security Coun­ eral asking him to investigate the mat­ Iraqi war machine. cil" and "State Department guidance" ter further. Placed in that perspective, the fact referred to in the letter means that, if On June 4, 1991, the Commerce De­ that the NSC actually took physical a committee does not know that a doc­ partment inspector general issued re­ control of Commerce Department docu­ ument exists, the agency will not re­ ports based on its investigations. The ments and had numerous contacts with veal it. The Rostow gang was estab­ report concludes, and I quote, the Commerce Department lawyers, se­ lished to delay congressional investiga­ "Changes were made to selected data rious questions should be raised about tion and to permit the White House to on 66 approved export licenses to Iraq. whether or not the NSC altered the regulate the flow of Iraq related infor­ Bureau personnel also changed perma­ Commerce Department records or, mation to Congress. In the case of the nent records, compromising the integ­ more likely, effectively ordered the Commerce Department, the White rity of the Iraqi license records. Nei­ changes to the records. After all, it is House went beyond regulating the flow ther the changes to the data provided highly unlikely that numerous Com­ of information to Congress. The com­ to the . chairman," that is, the gen­ merce Department bureaucrats would mittee has gathered evidence showing tleman from Georgia [Mr. BARNARD], risk breaking the law and losing their the National Security involvement in a "nor the changes to the system data jobs over a policy that they were not scheme to mislead the Congress about bases were adequately supported." responsible for setting. the licensing of military useful goods May I also add that the gentleman Another important question relates destined for Iraq. That is before the from Georgia [Mr. BARNARD] is not to the fact that the Commerce Depart­ war. The Commerce Department has only the chairman of a subcommittee ment lawyer that limited the scope of been wrongfully subjected to severe of the Committee on Government Oper­ the investigations also is a member of criticism for its role in the transfer of ations. He is also a very illustrious the Rostow gang. It is certainly plau­ military useful technology to Iraq. The member of the Committee on Banking, sible to think that the NSC or others true responsibility for the transfer of Finance and Urban Affairs. ordered him or pressured him into lim­ United States technology to the Iraqi The report goes on to state that it iting the scope of the Commerce De­ war machine lies with the White House was bureau personnel that changed the partment's investigations so that at­ and the State Department because export licensing records. The Kloske tention would not focus on the NSC they set technology transfer policy. and inspector general investigations of staff. The Commerce Department's role is the changes to the export licensing in­ In addition, the circumstances sur­ merely to carry out the policies estab­ formation were both seriously flawed. rounding Mr. Kloske's departure from lished by the White House and the Both reports are silent on the issue of the Commerce Department also raises State Department. As with the CCC­ who ordered the changes to the export­ suspicions. It was reported in the press the Commodity Credit Corporation­ ing licenses information that was sub­ that Mr. Kloske was forced out of his and the Eximbank_:_the Export-Import mitted to the Congress. Both reports post at the Commerce Department be­ Bank-programs, the National Secu­ are silent on that critical, important cause of derogatory comments he had rity Council and the State Department issue because the Commerce Depart­ made about the administration's ex­ viewed the export licensing process as ment's general counsel deliberately port policy toward Iraq. Could the Na­ a valuable tool of diplomacy. They avoided investigating the question of tional Security Council have ordered need U.S. high technology transfer as who was responsible for ordering the him or pressured him into authorizing an inducement to gain favor with Sad­ changes to the licensing data. the changes to the export licensing in­ dam Hussein. formation? That is a good question, That explains why the NSC and mem­ D 1240 and it should be asked. The question bers of the Rostow gang became di­ Could the changes have been ordered and its asking should be sustained. rectly involved in a scheme to mislead by the ·National Security staff? Well, On July 10, 1991, Mr. BARNARD wrote the Congress and the American public despite the availability of evidence to then Attorney General Thornburgh thereby about the military nature of pointing in that direction, neither in­ asking him to investigate the possibil­ United States technology transfers to vestigation was permitted to pursue ity of criminal culpability relating to Iraq. that possibility. The Banking Commit­ the Commerce Department's provision Beginning in September 1990, the tee has been informed by administra­ of false information to the Congress. House Subcommittee on Commerce, tion officials that the NSC legal staff To date, the Justice Department's Consumer and Monetary Affairs, went beyond reviewing the Commerce probe has not returned any indict­ chaired by my colleague, the gen­ Department documents that were to be ments. It is interesting to note that tleman from Georgia [Mr. BARNARD], forwarded to Mr. BARNARD's sub- one of the Justice Department's top March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5749 lawyers is also a member of the Rostow and in testimony before the Congress the State Department and what not, gang. these same officials often stated that and, on the other hand, canceled out by The Rostow gang process operates as the United States does not single out the banking arrangements? a sort of Maginot Line. If congressional farm exports as a tool of foreign policy. As I have said, at the bottom of ev­ investigations pass the first barrier, In the case of Iraq, this administration erything is financing. Banking. Money. they soon run up against the next. violated both of these policies, and in As they say in Spanish, don denaro Under this strategy, the process of ob­ the process they repeatedly mislead poderoso caballero, or, Mr. Money taining documents to investigate Unit­ the Congress and thereby the American Bags, a mighty powerful individual in­ ed States-Iraq policy is a painstaking, people. deed. tedious, drawn-out process that en­ The U.S. Department of Agriculture The BNL investigation uncovered the sures many months will pass before a [USDA] offers a variety of programs de­ fact that top Iraqi Government offi­ congressional committee obtains docu­ signed to assist U.S. farmers to sell cials were involved in this scheme. ments needed to conduct Iraq-Telated their products overseas. The biggest of Well, of course. We do not under­ investigations. these programs is the Commodity Cred­ stand. It is not like our setup, any The mere fact that the White House it Corporation's Export Credit Pro­ more than the setup of the central established and directs a group to regu­ gram. This was also the main United bank in these other nations is like late congressional . investigations of States program utilized by Iraq. ours, or the screening and the over­ The goal of the CCC Program is to as­ sight and the regulating of their bank­ Iraq policy raises questions about the ing functions, both domestic as well as motives of the White House. sist U.S. farmers to sell their agricul­ foreign, are comparable to our country. Some important questions that need tural products abroad by granting Even the Europeans, German, to be asked are: What do congressional cash-strapped nations credit to pur­ French, we are not talking about the investigations of the preinvasion Iraq chase U.S. agricultural products. The same thing. That does not seem to policy have to do with designing and CCC is required by regulation to allo­ have dawned on our leaders in our carrying out the President's national cate its credit on the basis of a foreign country even now. security strategies? With the world country's needs, its market potential, It also brought to light the abuses of changing by the minute and our na­ and, above all, the likelihood that the CCC Program toward Iraq. On top tional security strategies becoming those guarantees or loans will be re­ of the BNL scandal, Iraq's already pre­ outdated daily, why would the NSC de­ paid. carious financial position took a turn vote scarce staff time to regulating In the case of Iraq, those purely com­ for the worse in 1989, as it began to de­ congressional investigations, or at mercial conditions were relegated to fault on its loans to other creditor na­ least attempting to and so far succeed­ secondary status. Achieving foreign tions. ing? policy objectives became and remained As a result of these factors, the Since when did it become the respon­ the prime goal of the CCC programs for Treasury Department and the Office of sibility of the National Security Coun­ Iraq. Management and Budget began to have cil staff to involve itself in congres­ I have shown in previous floor state­ serious doubts about extending CCC sional investigations? ments that from the beginning of the credits to Iraq. Pursuing friendships Well, someone like me would want to United States-Iraq relationship in 1982 with Saddam Hussein, above all else, know. We asked that question, and we until the Iraqi invasion of Kuwait, the the State Department was not daunted know what has been happening for CCC Program was the cornerstone of by Iraq's poor financial condition or many years. It goes back many years, United States-Iraq relations. The CCC the pessimistic outlook of its sister and I had knowledge of a lot of things Program financed the sale of $365 mil­ agencies. that at the time we found hard to be­ lion in U.S. agricultural products in Based on purely foreign policy lieve. 1983. That was the year that President grounds, the State Department pressed The only other example that comes Reagan took Iraq off the list of terror­ the USDA, the Department of Agri­ to mind is the Iran-Contra investiga­ ist nations and opened the sluice gates culture, to give Iraq $1 billion in CCC tion. for all of this interchange, and so forth, credits for fiscal year 1990. Are the lawyers of the various agen­ and by 1988 it had reached over $1 bil­ The invasion of Kuwait happened on cies so incompetent that they need lion annually, all guaranteed by tax.:. August 2, 1990. This was despite the guidance on answering congressional payers, and the taxpayers have been USDA's contention that the CCC Pro­ requests for information? On the con­ left with a bag of over $2.5 billion just gram should be held under $800 million. trary, executive branch agencies proc­ on these Iraq letters of credit financed Now, what I am not mentioning, but ess hundreds of congressional requests through the CCC Guarantee Program. I have in the past, and maybe I should for information each year. The lawyers D 1250 not regurgitate that, but I think I at these agencies are most competent, ought to remind my Members that highly motivated people who do not The CCC Program was by far the these credits through the BNL were le­ need, nor usually receive, guidance largest U.S. Government program be­ veraged and led to the purchase of high from the White House in complying came the two nations. With the advent technology from American corpora­ with these requests. of the BNL scandal, that is, the Italian tions, such as the giant gun that was in Given Mr. Rostow's close proximity bank, the Banca Nazionale del Lavoro, the process of being developed, whose to the coverup of the Iran-Contra scan­ which, incidentally, all these banks are originator was assassinated in Belgium dal and the unique functions of the government-owned, and all of these at the height of all this. Also chemical Rostow gang, it is not outside the transactions are by the central bank of weapons and ingredients for chemical realm of possibility that the White Iraq, for whatever that means. Of weapons. House is hiding something about its course, our regulators, the Federal Re­ They were all leveraged through Iraq policy. · serve Board, which is supposed to have these licensing credits through not It used to be that coverup were sort prime jurisdiction says, "Well, of only BNL, but BNL acts as a bank. It of ad hoc events, a made scramble to course, our reciprocity means we can't also acts as a syndicator. provide damage control for the mo­ get behind these accounts of a central What do we mean by syndicator? ment. The Rostow gang advances the bank of another country." That is a fancy word. It means they do notice that coverup mechanisms have But what about these other banks not do it alone. They bring in other become an integral cog in the machin­ that are also owned? They may not be banks. And they brought a host of not ery of this administration. the central bank, but they are owned only American, but foreign banks, into Officials of this administration have · by that government. And how can the these transactions. publicly stated that they would not use policies of our Government not be frus­ Based on purely foreign policy food as a political weapon, for example, trated, on one hand expressed through grounds, the State Department pressed 5750 CONGRESSIONAL RECORD-HOUSE March 16, 1992 the United States Department of Agri­ many know the tremendous amount of Part of Mr. Kelley's responsibility culture to give that credit to Iraq. Iraq money that the Import-Export Bank was to testify before Congress. While was aware that a CCC Program was in has released for Kuwait? How many Mr. Kelly recognized and used the jeopardy. In a meeting in October 1989 Members realize that at this time our CCC's agricultural export promotion between Secretary of State Baker and home builders, those in areas in which program as a tool of diplomacy, on sev­ Iraqi Foreign Minister Aziz, on October masonry is not the big ingredient, but eral occasions he deliberately misled 6, 1989, Mr. Aziz was paraphrased as lumber, are finding that the cost of the Congress and the American public saying: lumber is going up because it is being about the use of the program. Food was a particularly explosive area be­ shipped to Kuwait? But under what During hearings on Iraq on April 26, cause the government must feed its people. conditions? Export-Import Bank guar­ 1990, before the House Foreign Affairs He [Aziz] said the Iraqi delegation was very antees. Committee and on June 15, 1990, before concerned that failure to agree to the full ($1 So it looks like we have learned the Senate Foreign Relations Commit­ billion] program now would force Iraq to nothing, or at least our executive search immediately for alternative suppliers tee Mr. Kelly stated: branch has not, or does not want to. Regarding our agricultural programs, U.S. and such suppliers were not available. U.S. At the conclusion of the meeting it actions will sour relations, he concluded. policy in both this administration and the was decided that a strong message previous one has been not to single out farm After an intense lobbying effort, in would be sent to Iraq-the second $500 exports as a tool of foreign policy. November 1989 the State Department million installment was not released. Not surprisingly, Mr. Kelly's memos finally won approval for a $1 billion fis­ This too little, too late effort to get cal year 1990 CCC Program for Iraq. never mentioned protecting the integ­ tough on Saddam Hussein was a viola­ rity of the CCC Program or protecting The other agencies did prevail in get­ tion of the Bush administration's own ting the program split into two $500 the American taxpayer from Iraqi de­ policy against using food as a political fault. Mr. Kelly was not the only Bush million installments. Under that ap­ weapon. proach the second $500 million could be The State Department, arguing administration official that misled the withheld if additional problems were against suspension, feared that sus­ Congress and American public about uncovered that warranted suspension pending the CCC Program would cause the United States policy toward Iraq. of the program. Additional problems Iraq to default on all its debts to the USDA KNEW CCC PROGRAM FOR IRAQ WAS did arise. United States. The State Department PRIMARILY A FOREIGN POLICY TOOL As 1990 unfolded Iraq became increas­ was right on that account but that I will now show how several USDA ingly belligerent toward the United issue became moot when less than 3 officials, including the former Sec­ States. As that belligerence grew, the months after the meeting Iraq invaded retary, repeatedly misled the Congress State Department and NSC looked for Kuwait and defaulted on its $2 billion and the public about the foreign policy leverage that could be used to modify in CCC debts. nature of the CCC Program for Iraq. Iraq's actions. They decided that the The committee has many more docu­ USDA repeatedly denied before Con­ leverage would be the release of the ments showing that the administration gress that the CCC Program for Iraq second $500 million installmen~ of CCC used the CCC Program for Iraq as a for­ was subject to foreign policy pressures credit. eign policy tool in an attempt to im­ and it also indicated that the CCC Pro­ The United States Ambassador to prove relations between our two na­ gram for Iraq was not mainly foreign Iraq, April Glaspie counseled against tions. What is troubling is that the policy based. Concrete evidence gath­ using food as a device to modify the ac­ Bush administration repeatedly misled ered by the committee contradict both tions of Iraq. In a May 18, 1990 cable to the Congress and the American public those assertions. the State Department and the NSC, about how it was using the CCC Pro­ The USDA was, in fact, well aware Ambassador Glaspie stated: gram. It did this to circumvent prudent that the CCC Program for Iraq was for­ My own thinking is that unless Agri­ controls that would have limited the eign policy based. To illustrate that culture has uncovered a legal hornets nest, amount of credit that would have been point consider a comment from a 1989 we will want to proceed with the second made available to Iraq. That deception Agriculture Department memo related tranche of credits. It remains unclear why has left the United States taxpayer to the proposed $1 billion fiscal year we would want to use food as a weapon. holding a much inflated tab for Iraq's 1990 CCC Program for Iraq. The memo Later that month the NSC called a default. states: meeting to discuss potential strategies D 1300 * * * This program cannot be seen by the for dealing with Iraq. In preparation Iraqi side outside the context of the overall for that meeting the State Department Former Under Secretary of State for U.S.-Iraqi political relationship. The U.S. re­ formulated a list of policy options that Near East and South Asia [NESA], lationship with the most powerful of Arab could potentially be used as a tool to John Kelly, was one of the chief lieu­ states, both militarily and in terms of its oil modify Iraq's actions. Regarding the tenants assigned to carrying out the reserves, has been carefully nurtured duri_ng CCC Program the paper states: United States policy toward Iraq. The the years of the Iran-Iraq war and more par­ committee has numerous documents ticularly, during the 10 months since the CCC Program: This is the largest program cease-fire. The CCC program, as the Ambas­ we currently have with Iraq. All the sanc­ written by Mr. Kelly showing that the State Department knowingly used the sador's personal cables have emphasized, tions legislation on the Hill, aside from played a key role in this approach. The Am­ Inouye-Kasten, exempts CCC. PRO: Since CCC Program as a foreign policy tool bassador's cables have stressed the threats Iraq's record of repayment on CCC-guaran­ in order to achieve President Bush's to the overall political relationship that a teed loans is good and USDA's review will decree to have close and friendly rela­ cutoff in the (CCC) program would pose. probably give Iraq a fairly clean bill of tions with Iraq. More widely, the cutoff runs the risk of in­ health, suspension of CCC at this point To illustrate that point, when the terpretation by the Arab countries collec­ would be a strong political statement. CON: BNL scandal threatened to cut off the tively as a further signal of their second It would violate our policy against using class treatment in U.S. foreign policy. food as a political weapon and hit some U.S. CCC Program for Iraq, Mr. Kelly wrote agricultural exporters hard. It might also in a February 1990 memo: Does that sound like a statement lead Iraq to default on CCC-insured loans. Saddam Hussein's recent attacks on the from an agency that does not under­ Other countries would sell these commod­ U.S. underline the fragility of our relation­ stand the foreign policy nature of the ities to Iraq. ship with Iraq. CCC is a key component of CCC Program for Iraq? Now, have we learned anything? No; the relationship and failure to approve the Despite knowing that the CCC Pro­ second ($500 million) tranche will feed not at all. Even as I am speaking now, Saddam's paranoia and accelerate his swing gram for Iraq was being inflated to how many of my colleagues know that against us. We need to move quickly to re­ achieve foreign policy objectives, in the United States, this administration, pair the damage to the U.S.-Iraqi relation­ testimony before the House Banking has entered into a 10-year treaty with ship by getting this critical program back on Committee in October 1990, the CCC's Kuwait? Ten years for defense. How track. Paul Dickerson stated: March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5751 It (the CCC program for Iraq) was a market ing the second tranche at this time. We want for Iraq. In the letter, Senator LEAHY driven agriculture-related program without to move ahead with the second tranche this wrote: reference to other issues. month, as the Iraqis have requested. If it ap­ I am also disturbed by rumors that foreign The USDA attempted more than once pears USDA is holding back, we may want to policy pressures have encouraged the Depart­ force the issue by bringing it before the NAC ment to give Iraq special treatment in this to keep the true nature of the CCC Pro­ Deputies (Committee). gram from public scrutiny. In an April case." 26, 1990, Treasury Department memo The State Department's position is On February 20, 1990, Secretary describing a meeting between USDA, further illustrated in a February 1990 Yeutter answered Senator LEAHY and State, and Treasury, the USDA is para­ memo to the Treasury Department in letter he states: phrased as stating: calling for a NAC meeting to discuss You mentioned that there were "rumors" the release of the second tranche. In The USDA official said USDA is concerned that foreign policy pressures have encour­ that foreign policy considerations may cause the memo Mr. Kelly writes: aged the Department to give Iraq special curtailment of the (CCC) program, and is un­ USDA's present delay in releasing the sec­ treatment in this case. To the contrary, the comfortable emphasizing foreign policy as ond tranche damages the interests of U.S. extension of CCC guarantees in connection the public rationale for making available the producers that sell to Iraq as well as our po­ with sales to Iraq have recently been subject first tranche of the fiscal year 1990 Iraq CCC litical relationship with an important coun­ to special scrutiny because of the BNL inves­ guarantees. try (Iraq). I therefore request that you tigation. (Treasury Department) convene a meeting of The USDA was fully aware of the It is interesting to note that an ear­ the NAC deputies as soon as possible so that lier draft of Secretary Yeutter's reply commercial rationale for the CCC Pro­ I can make State's case for immediate ac­ gram for Iraq and the conflicting re­ tion. was much more specific and mislead­ ing. The draft letter contained a flat ality caused quite a bit of worry among A third example showing that the the program's managers. In prepara­ denial, as opposed to the descriptive USDA was under intense pressure to version that was actually sent. The tion for the May 1990 NSC meeting that approve the CCC Program is contained I mentioned earlier, the USDA sent a draft letter states: in a May 25, 1990, Treasury Department You mentioned that there were "rumors" wishful background memo to Mr. Brent memo summarizing a meeting held be­ Scowcroft which stated: that foreign policy pressures have encour­ tween the USDA, Treasury, and State aged the Department to give Iraq special * * *It cannot be overemphasized that any Department. The memo states: treatment in this case. I can assure you that constraint on CCC credit guarantees must (The) meeting has been initiated by the there is no basis to this rumor. not be based on a foreign policy rationale. NSC staff because they want to prevent the The State Department directly inter­ As we know, in order to send a strong CCC program from being canceled as is vened at least twice in USDA 's oper­ political signal to Saddam Hussein, the would exacerbate the already strained for­ ation of the CCC Program. First it program was suspended at that meet­ eign policy relations with Iraq. Agriculture raised the amount of the fiscal year ing. had planned to put out a press release on May 21, 1990 that said the program was being 1990 CCC Program for Iraq from the USDA DENIES INTENSE PRESSURE suspended until the investigation into im­ USDA recommended amount of $800 In my floor statement of March 2, I proprieties in the program were completed. million to $1 billion. Second, the State showed that the pressure on the USDA The NSC prevailed on Agriculture to say Department would not permit the to approve the CCC Program for Iraq only that their investigation showed the im­ USDA to suspend the CCC Program for was intense. It was so intense that in proprieties may have occurred and remained Iraq in April 1990. The State Depart­ late 1989, both Secretary of State silent on the suspension. In fact there is a ment sought to turn the program on James Baker and Deputy Secretary of suspension in effect. * * * and off for policy reasons, and nothing State, Lawrence Eagleburger put the D 1310 else. full weight of their offices behind win­ Even though the USDA was under in­ Despite these and other pressures the ning approval for the CCC Program for tense pressure from the State Depart­ USDA continued to mislead the Con­ Iraq. They lobbied the USDA and other ment, on several occasions USDA offi­ gress and the American public by in­ agencies and neither minced words­ cials deliberately misled Senator PAT­ sisting that the State Department was they wanted the CCC Program for Iraq not applying undue pressure on the RICK LEAHY, the chairman of the Sen­ approved for foreign policy purposes. ate Agriculture Committee about those USDA. Given that high-level officials During the period surrounding the pressures. of the USDA were willing to mislead 1989 debate on whether or not the CCC In February 1990 Senator LEAHY took the Congress and public about the use Program for Iraq should be approved, opportunity of hearings on the 1990 of the CCC Program, one must be con­ the USDA still strongly supported the farm bill to question the USDA's Rich­ cerned about the integrity of the entire program-albeit at a lower level than ard Crowder about allegations that the CCC Program. the State Department. Since Iraq had USDA was being pressured to approve How much of it is involved now in become a large market for United the CCC Program based on foreign pol­ our lumber producers, lumber going to States agricultural products, the icy grounds. During the hearing Sen­ Kuwait, making our potential home USDA feared that a sudden termi­ buyers, who can afford one, pay a much ator LEAHY stated: higher price even now with so-called nation of the program would place too I assume you are getting some pressure, ei­ much of a burden on United States ther from the State Department or else­ deflation? farmers. where, within the administration to loan One must be concerned. The CCC Pro­ As 1990 unfolded the USDA began to money to Iraq. Or is it just an internal deci­ gram for Iraq is a prime example of seriously doubt the wisdom of releasing sion made simply by the Department of Agri­ how the State Department and the the second $500 million installment of culture? NSC use United States credit programs · CCC credits to Iraq. The State Depart­ Mr. Crowder responded: as a back-door means of financing your ment detected the USDA's growing ap­ We (USDA) are not getting undue pressure foreign policy objectives, often at the prehension and it exerted considerable from anyone on either side, either for Iraq or expense of the United States taxpayer, pressure on the USDA to win approval anyone else at this time. If we did not agree if not almost 100 percent. Because the for the release of the second $500 mil­ with it we would not recommend it. If we administration strongly denies that lion installment for Iraq. thought it was appropriate, we would rec­ these programs are used in this manner The State Department's position is ommend it. there is a decided lack of accountabil­ illustrated in a January 4, 1990, infor­ The Secretary of Agriculture even ity over such use of the programs. mational memo which states: got into the act. On February 12, 1990, In 1989 and 1990 the State Department * * * USDA may still be reluctant to pro­ Senator LEAHY wrote to then Secretary used the CCC Program for Iraq as a po­ ceed with the second tranche. CCC has been of Agriculture, Clayton Yeutter, ask­ litical weapon in a failed attempt to criticized heavily for mismanagement in re­ ing about the BNL scandal and the fis­ modify the actions of Saddam Hussein. cent months and may not want to risk push- cal year 1990 $1 billion CCC Program That dubious effort cost the U.S. tax- 5752 CONGRESSIONAL RECORD-HOUSE March 16, 1992 payer, in one instance, as I said before, ing Committee, and from Congressman Rose 6. Relevant agency will make copies of po­ not necessarily CCC, $500 million, $500 of the House Agriculture Committee. tentially responsive materials and provide to Congressman Rose wrote to you on April OGC. million. With less than that amount we 12, 1991 (copy attached), expressing his re­ 7. Agency or OGC (to be decided after con­ could target the needed improvements quest for documents in rather forceful terms. sultation) will provide copies to Committee we have in the sorely reduced housing A proposed reply for your signature is at­ with appropriate cover letter drafted by stock for the very poor, known as pub­ tached. OGC. lic housing. DISCUSSION SUMMARY The State Department clearly does 1. Background. The NSC's legal adviser and The NSC is providing coordination for the not hesitate to misuse commercial ex­ director of legislative affairs called an inter­ Administration's response to Congressional port programs nor to lie about its ac­ agency meeting to discuss the Administra­ document requests for Iraq-related mate­ tions. tion's response to numerous requests for rials. The process is intended to be a cooper­ Iraq-related documents. Boyden Gray at­ ative one; it also recognizes the Executive Mr. Speaker, I include here the docu­ tended the meeting, as did the Assistant At­ ment and the records on the basis of Branch's appropriate confidentiality inter­ torney General for the Office of Legal Coun­ ests. Many Congressional committees are in­ which I have issued this report to my sel and the legal and congressional officers vestigating the subject, including the House colleagues. for State, Treasury, Commerce, and Energy Banking Committee and House Agriculture NATIONAL SECURITY COUNCIL, Departments as well as the CIA, NSA and Committee. These two committees have sub­ Washington, DC, April 8, 1991. Joint Chiefs of Staff. Each agency reported mitted document requests to USDA. Memorandum for: Jeanne S. Archibald, on document requests it had receive~. The In connection with the request from the Treasury; C. Boyden Gray, White House; House Banking Committee, House Agri­ House Agriculture Committee, a proposed re­ Fred Green; Michael Luttig, Justice; Ter­ culture Committee, House Ways and Means sponse to Congressman Rose's April 12 letter rence O'Donnell, DOD; Alan Raul, USDA; Committee, General Accounting Office, per­ to you is attached. Elizabeth Rindskopf; Edwin Williamson, haps the Foreign Relations Committees, as well as other committees, are requesting State; Wendell Willkie, Commerce. DEPARTMENT OF COMMERCE, THE Iraq-related materials. Subject: Meeting on Congressional Requests The Treasury Department reported that it UNDER SECRETARY FOR EXPORT for Information and Documents. had permitted Hill staff to review the Na­ ADMINISTRATION, First of all, I apologize to Treasury and tional Advisory Council minutes regarding Washington, DC, February 26, 1991. Agriculture for not inviting them to the inter-agency consideration of the Iraq GSM Memorandum for: Wendell Willkie, General meeting today on responding to congres­ request. The NAC minutes were reviewed in Counsel. sional requests for information and docu­ the offices of the Treasury Department; the From: Dennis Kloske. ments pertaining to U.S.-Iraq policy prior to Committee staff was not provided with any Subject: Iraq Printout. August 2, 1990. At the meeting, it became ap­ copies of the NAC minutes. Congressional At your request, I have asked the Office of parent that these departments should have staff members were not even permitted to Export Licensing staff to prepare a report on been present. I shall schedule a meeting for take notes on any classified minutes. the preparation of the printout for Chairman tomorrow on requests pertaining to the BNL/ 2. Deliberative Materials. The Justice De­ Barnard. A copy of this report titled "Iraq CCC matters to which Agriculture and partment emphasized the need to determine Data Base Assessment" is attached, along Treasury will be invited. which documents contained information that with Qs & As and a case-by-case summary of After reviewing the requests thus far re­ could be central to the Presidency, such as any corrections made to the printout. I be­ ceived for information, today's meeting con­ national security, diplomatic and other de­ lieve this fully responds to your memoran­ cluded that: liberative matters. The Assistant Attorney dum to me of February 8. The first printout Department General Counsels should re­ General also suggested that minority as well provided to the Committee is a summary ref­ view and inventory all requests to determine as majority staff members be included in erence document which is responsive to the which, if any, raise issues of executive privi­ whatever document review is allowed. He Chairman's request concerning the history of lege (deliberative process, foreign relations, further suggested that, if appropriate, agen­ exports to Iraq. The document also reflects national security, etc.); cies should consider entering into confiden­ Fifth Floor and White House guidance not to Alternatives to providing documents tiality agreements with the Congressional provide information that was not directly re­ should be explored (e.g., briefings); committees or editing out the deliberate or sponsive to the Chairman's request. Please When access to documents may be rec­ advisory portions of potentially privileged note that to date, four printouts have been ommended, such recommendation should be documents. provided to the Committee-the first two by circulated to this group for clearance; 3. Coordination and Review. The meeting ECCNs, and the other two by end-users. A recommendation to provide access concluded with NSC suggesting that the co­ I have also been informed that the list of should be restricted to members only subject ordinating process would continue to be four suspended cases to Iraq was not supplied to these conditions: no document may be re­ available so that agencies do not pursue in­ to the Committee, although Mr. Jacobs, Bar­ tained; notes may be taken but should be consistent approaches. It was also noted that nard's Chief of Staff, was told about it dur­ marked for classification by the department the 'Objective is to cooperate with Congress ing one of the briefing sessions. I have given or agency in question. (FYI: our legislative while also ensuring that appropriate protec­ instructions that the list be given to the affairs office recommends against insisting tions are accorded to deliberative materials. Committee. that members come to departments to read Also, the inter-agency nature of the subject I would be happy to brief you on the report documents.); and should be recognized-therefore, agencies in greater detail. In any event, departments and agencies should not act unilaterally. In particular, an should seek guidance from this group in agency should not disclose documents in its IRAQ DATA BASE ASSESSMENT cases of doubt. files that were originated by another agency Information on export license applications I hope you agree that this summary fairly without advance consultation. to Iraq is contained in the Export Control represents where we came out. Finally, it was agreed that materials Automated Support System (ECASS) data NICHOLAS ROSTOW, should be reviewed before being provided to base. That data base contains more than 1.5 Special Assistant to the the Congressional committees and that each million records dating back to 1980. There President and Legal Adviser. agency should maintain a list or copies of are more than 400 different computer pro­ the documents provided. grams that can be used to access the data 4. Suggested Guidelines. I proposed the fol­ U.S. DEPARTMENT OF AGRICULTURE, base to obtain different information. lowing procedures and guidelines in response OFFICE OF THE GENERAL COUNSEL, Records dating back to 1980 are very to these document requests within USDA: Washington, DC, April 17, 1991. 1. Requests should be received in writing. sketchy and cover little more than the date MEMORANDUM FOR THE SECRETARY 2. Party receiving request should forward of receipt and final action. In the mid-1980s, the data base improved greatly but still con­ From: Alan Charles Raul, General Counsel. copies to: a. Blumenthal/O'connor (Cage); b. Raul/Brosch (OGC); c. Crowder/Acker/ tained many inaccuracies as data was im­ Subject: Iraq-Related Document Requests; puted by key punch operators. In 1988, the Response to Congressman Rose. Hovemale (LACP/F AS); D. Bailey (OCR); e. Snead (OIG). data base accuracy increased once again as ISSUE 3. OGC will review each request and pro­ application information was entered either On April 15, Gene Bailey and I attended a vide advice. electronically from the exporter or by scan­ meeting called by the NSC to discuss the Ad­ 4. Potentially responsive files and/or docu- · ning applications with Optical Character ministration's response to Congressional re­ ments will be reviewed or evaluated by OGC. Readers. quests for Iraq-related documents. USDA has 5. To the extent requested and appropriate The actual data base can only be modified received document requests from Congress­ (within OGC advice), access to files may be by the Director of the Office of Information man Gonzalez, Chairman of the House Bank- provided. Resources Management (OIRM) or by his

.. -- • •• - ... _ __.. ••••• ·- ··- ...... -- • - - ••• --...1. ,I ...... 1....-__ .._ -· • • -- .-.- - ~ ...... - March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5753 Deputy. No one in the licensing office nor The one exception concerned the State De­ This report contains recommendations to any senior management official has the ca­ partment, which requested a modification to ensure the integrity of the export licensing pability to access the computer and modify the data presented to the Congressman. data and any such data submitted to the any existing data. While Commerce's data base showed that Congress in the future. These recommenda­ Congressman Barnard requested on Sep­ several of the applications which had been tions have been discussed and agreed to by tember 28, 1990, a list of all export licenses to referred to State had received a rec­ Bureau officials; we are therefore issuing Iraq from 1985 to August 2, 1990. He asked for: ommendation of approval, the State Depart­ this report in final form. Department Admin­ Disposition of each license application, ment wished in those few cases to have the istrative Order 213-5 requires operating units Requester of each license application, recommendation changed to one reflecting to submit an audit report action plan, in­ Product to be exported, that State had raised no foreign policy objec­ cluding a timetable for implementation of Approximate value of sale, tions. State contended that in these few the recommendations, within 90 days of the End-Use, cases there was not formal requirement to date of the audit report. Accordingly, we re­ End-User, and refer the application to State, and, thus, no quest that the acting Under Secretary of the Export Commodity Control Number formal opinion of approval from State was Bureau of Export Administration be directed (ECCN). required. Commerce refused to alter the data to submit such a plan. We are providing a The Congressman stated in his request base but did agree to footnote those few in­ copy of this report to the acting Under Sec­ that he understood that "the requested in­ stances with State's preferred description of retary and to the General Counsel. formation is on a computer data base and is its position. With the exception of the corrections INTRODUCTION readily accessible." Beginning in September 1990, Congressman Accordingly, we decided to respond to the noted above and in the attached case-by-case description, no changes were made to the Doug Barnard, Jr., Chairman of the Sub­ Congressman's request by preparing a print­ committee on Commerce, Consumer, and out generated by the ECASS data base. For data base. The printouts provided to the Congressman factually represent what is in Monetary Affairs, House Committee on Gov­ the disposition of the export license applica­ ernment Operations, sent several requests to tion, we asked the computer to list whether the ECASS data base and what has always been in the ECASS data base. The ECASS the former Under Secretary for the Bureau the case was approved, rejected, returned of Export Administration for lists of export without action, or embargoed. For the re­ system is one of exceptional security and quester, we provided the name of the appli­ was designed with internal safeguards and license information on Iraq from 1985 audit trails to preclude alteration. through 1990. The former Under Secretary re­ cant-the exporter. In sum, the printout provided to Mr. Bar­ sponded with computer printouts on October For the product to be exported, we used the nard is a summary reference document that 10, October 24, and December 12, 1990. description associated with the Export Con­ is responsive to his September 28, 1990, re­ The October 10 printouts did not show trol Commodity Number (ECCN) contained quest. The printout is also consistent with whether the licenses were referred to other in the data base. We thought this would be Fifth Floor guidance and requests from both departments under applicable licensing regu­ more helpful to the Congressman rather than State and the NSC that no additional infor­ lations. The regulations require BXA offi­ printing out the lengthy listing of technical mation be provided that does not directly ad­ cials to submit certain license applications specification and model numbers. Thus, for dress the Committee's request. to the Departments of State, Energy, and example, a product description read, "Elec­ tronic Computer and Equipment" rather Defense. The October 24 printout showed in­ DEPARTMENT OF COMMERCE, formation on the referral to other agencies, than the specific model and technical details THE INSPECTOR GENERAL, but it did not show the other departments' of the computer in the application. Washington, DC, June 4, 1991. responses or recommendations. The Decem­ For the value, we used the value submitted Memorandum for: Robert A. Mosbacher, Sec­ with the application. For the end-user, we ber 12 printouts showed all referral informa­ retary. tion, including the other department's rec­ asked for the ultimate consignee. For the From: Frank DeGeorge, Inspector General. ommendations. end-use, we asked the computer to printout Subject: Report on Iraqi Export License In­ On February 8, 1991, the Department's Gen­ the end-use as listed in the data base. For formation, Bureau of Export Administra­ eral Counsel asked the former Under Sec­ the ECCN, we provided the ECCN. tion. retary to provide a report addressing wheth­ In reviewing the printouts before their sub­ At the request of the Department's Gen­ er (1) the printouts were misleading, (2) cer­ mission to the Congressman, we compared eral Counsel, we reviewed the releases of tain end users of the licensed commodities each entry for accuracy with information Iraqi export license information to the were deleted or changed, and (3) the charac­ that was available on microfiche records. In Chairman of the Subcommittee on Com­ terizations of the licensing information had 65 instances out of the 1,126 licenses proc­ merce, Consumer, and Monetary Affairs, essed for Iraq during this period, we found been materially changed from those origi­ House Committee on Government Oper­ nally in the system database. This informa­ that the data base did not correctly reflect ations. Our review disclosed no evidence that the disposition of the application. Not sur­ tion was requested because of media-re­ Bureau of Export Administration personnel ported allegations that export license infor­ prisingly, most of these instances were for deleted entire export license records before mation and records were deleted from the applications before 1988. Based on concrete they submitted the information requested by Bureau's files. The former Under Secretary and specific documentation available on the Chairman. However, we did confirm an microfiche, we corrected the data base by in­ provided the report on February 26, 1991, ac­ initial report by the former Under Secretary knowledging that changes were made to the cluding the additional information. These for Export Administration that a small per­ corrections are detailed case-by-case on the information given to the Chairman. centage of certain data of the Iraqi export li­ On March 11, following continued media re­ attachment. Generally, they included: censes processed were changed in submis­ ports that Iraqi export license information Additional information not reflected in the sions to the Hill. data base, Bureau personnel, including the former was deleted from the Bureau's files, the Gen­ Updating other agency recommendations eral Counsel asked the Office of Inspector Under Secretary, stated that while preparing General to review this matter. or adding positions where the most recent printouts for submission to the Chairman, recommendations had not been entered into changes were made to selected data on 66 ap­ PURPOSE AND SCOPE OF REVIEW the data base, and proved export licenses for sales to Iraq. Our The purpose of our review was to deter­ More detailed commodity or end-use de­ review disclosed changes to data on two ad­ mine (1) if any changes were made to the in­ scriptions where the information in the data ditional licenses concerning trucks. Bureau formation prior to submission to the Chair­ base was insufficient or misleading. personnel also changed permanent records on man, (2) if any changes were made to the ex­ All of the recommended corrections were the Export Control Automated Support Sys­ port control automated system database forwarded to OIRM for entry into the data tem database, compromising the integrity of records, and (3) the accuracy and complete­ base. Again, no corrections were made by the Iraqi license records. Neither the ness of notations indicating the positions of any licensing personnel or by any senior changes to the data provided to the Chair­ other departments involved in reviewing li­ managers in the organization. man nor the changes to the system database censes for exports to Iraq. With respect to the data provided to the were adequately supported. Our review dis­ We interviewed Commerce officials in­ Congressman and the position of the other closed that the former Under Secretary con­ volved in preparing the responses to the agencies, these reports were cleared with curred with all changes to the data sent to Chairman, including the former Under Sec­ those agencies. All advisory agencies- De­ the Chairman, but was unaware of any sys­ retary, and officials from the Defense, State, fense, State, Energy and the Subgroup on tem database changes. With the exception of and Energy Departments. We reviewed the Nuclear Export Controls (SNEC)-have re­ changes to five truck licenses to remove a Bureau's support for the acknowledged viewed these reports and concur in the accu­ reference to their potential military use, the changes to the printouts furnished the Chair­ racy of Commerce's information and, with changes were inconsequential and eliminated man, and determined whether Bureau per­ one exception noted below, in the manner apparent inconsistencies in the license infor­ sonnel had also changed other license infor­ which it appeared in the data base. mation. mation in the export license system 5754 CONGRESSIONAL RECORD-HOUSE March 16, 1992 database. Bureau officials did not maintain that made them inconsistent with the regu­ ported. Bureau personnel told us that the any copies of the printouts provided to the lations. changes to other agency positions were "cor­ Chairman, so we obtained Iraqi license infor­ A Bureau official told us the commodity rections" supported by export licensing regu­ mation stored on magnetic tape as of May 22, descriptions were changed to clarify that the lations and files of original documents. 1990, and provided last August by the Bureau Bureau does not license the sale of military Our review of the documentation used to to another government agency. The tape did trucks. The official also said that the de­ support the changes showed that 13 of the not include archived export license data for scription changes were justified by a State changes were based only upon the Bureau li­ fiscal years 1985 and 1986. We also obtained a Department letter to an exporter in 1983. The censing officer's written notation that an copy of the printouts from the congressional letter indicated that the exporter's trucks, agency position had changed. We also found committee that received the information. which were intended for sale to Iraq, were that 31 of the 39 changes were not supported We compared the copies of the printouts sub­ classified as "commercial utility cargo by reliable independent documentation. The mitted to the Chairman with the informa­ truck(s)." licensing officers often did not base the tion provided on the May 22, 1990, computer We disagree with both reasons for changing changes on independent supporting docu­ tape. We also compared the data shown on the commodity descriptions. The export ad­ mentation such as memoranda prepared by the December 12 printout with the data from ministration regulations allow the Bureau to officials of other agencies. the May 22 magnetic tape to determine the improve licenses for the sale of military Bureau personnel also did not provide ade­ reliability of the Iraqi information in the trucks that are not on the U.S. Munitions quate support for changes that removed no­ database-that is, whether export license List. Such vehicles are primarily transport tations indicating referral to other agencies. records were deleted from the database. vehicles designed for noncombat military Additionally, each license application must We did not examine the internal controls purposes. Additionally, when we discussed include a statement on the end use of the over the input and maintenance of data in the contents of the 1984 letter with Depart­ commodity being exported. Bureau personnel the export licensing system. Instead, we ment officials, they informed us that the let­ did not provide adequate documentation to have initiated a separate review over these ter provides no justification for the descrip­ support the changes in the end use state­ controls and will provided you with a copy of tion changes. It merely informed the ex­ ments. that report when that review is completed. porter that the trucks are not on the muni­ Bureau personnel stated that they had dis­ This review was performed at Bureau head­ tions list and can be licensed by the Bureau. cussed all changes with officials of other quarters and at the Departments of Defense, We conclude that the changes were unjusti­ agencies to confirm that the changes accu­ State, and Energy in Washington, D.C. Ex­ fied and misleading. rately reflected their positions. Bureau per­ cept as noted above, the review was con­ Bureau personnel changed five licenses for sonnel further stated that these officials ducted in accordance with generally accept­ trucks, including the two that we found. The concurred with the changes. ed government auditing standards and was total value of the licensed trucks were over We asked officials at the Energy, State, performed under the authority of the Inspec­ Sl billion, or approximately % of the total and Defense Departments to verify state­ tor General Act of 1978, as amended, and De­ value of the approved export licenses for Iraq ments by Bureau personnel. The Energy De­ partment Organization Order 10-13, dated during the period under review. In fact, more partment official disagreed with three of 10 May 22, 1980, as amended. than 97 percent of the total value of the position changes. However, he did not indi­ changed licenses is accounted for by changes cate that additional action to correct the BUREAU PERSONNEL CHANGED INFORMATION ON record was needed. A Defense Department of­ 68 LICENSES to the truck licenses. Although the licenses were approved, Bureau personnel informed us ficial stated that approximately 30 percent of In his report to the General Counsel, the that no licensed trucks have been shipped. the licenses were approved "with condi­ former Under Secretary stated that Bureau tions," while the Bureau's records indicated personnel changed licensing data on 65 of the Justification for Deleting Computer Parts and that the licenses were simply approved. An­ 1,126 licenses (later amended to 1,130) proc­ Components Referrals Not Clear other Defense Department official stated essed for Iraq from 1985 through August 2, Bureau personnel deleted 19 referral nota­ that he told the committee staff that he was 1990. Bureau personnel acknowledged one ad­ tions to other agencies; however, those ac­ satisfied with the presentation of the De­ ditional license data change as we began the tions were not clearly justified. Nine refer­ fense Department's positions on the print­ audit. During our review, we identified two rals to the Defense Department for computer out. The State Department did not disagree additional license data changes that were parts and components were deleted, and ten with the stated positions. As a result of the not previously acknowledged, bringing the other referrals for various other commod­ other agency officials' comments, we con­ total to 68. ities were also deleted. Bureau personnel sider the changes to the positions and the de­ The license data changes were as follows: told us they deleted the notations related to letions of the referrals to have had little ef­ (1) Descriptions of trucks were changed on the computer parts and components because fect on the Iraqi license information given to five license records to eliminate a reference the Licensing Officers' Operating Manual the Chairman. to a design for military use. stipulates that parts and components li­ We found that the other agencies did not (2) Notations were removed on 19 license censes should not be referred to the Defense maintain complete records of the license ap­ records that had indicated referrals of li­ Department. plications submitted for their review. De­ censes to another agency. We reviewed the operating manual and fense Department officials told us they de­ (3) Stated positions of other agencies that found that it contained conflicting proce­ pended upon the Bureau's files to support the review or approve licenses were changed on dures as to whether licenses for computer changes in their positions. 39 license records. parts and components should be referred to PERMANENT CHANGES TO THE EXPORT CONTROL (4) End use statements were changed on another agency. A dated procedure could be AUTOMATED SUPPORT SYSTEM WERE MADE five licenses. On four licenses for equipment used to justify the referral notation dele­ WITHOUT ADEQUATE SUPPORT used in a "magnetic media factory," the de­ tions, but a more recent procedure required scriptions of end uses were expanded. The ex­ that the licenses be referred to the Defense The Bureau maintains the Export Control pansion added the phrase "to [manufacture] Department for approval. Notwithstanding Automated Support System, which provides video tapes for consumer electronics." On the position of Bureau personnel that com­ license processing and historical information one license, the exporter had inserted a com­ puter parts and components need not be re­ on export licensing activities. It also pro­ ment that, "According to our information ferred to the Defense Department, they were vides the data needed to support enforce­ the end user is involved in military matters" referred and licensing issues were settled ment actions for export license violations. in the end use field. Bureau personnel de­ among the appropriate agencies. Under the The system contains the official license ap­ leted the comment. circumstances it would have been more ap­ plication, the application tracking informa­ propriate to have included the referrals in tion, the license, and the follow-up actions. Changes to "Military Truck" Licenses The system allows changes to applications Unjustified the printouts and explain the resultant posi­ tions where necessary. before they are approved; however, once a li­ The export regulations provide an export We did not review the entire manual to see cense is issued it becomes an historical control commodity number and general de­ if it contained other conflicting or confusing record and no changes by licensing officers scription for each commodity to be exported. procedures. However, Bureau officials should are permitted. The date of final action is en­ Bureau personnel changed the commodity perform such a review to ensure that licens­ tered automatically by the system and can­ description for trucks from "vehicles de­ ing personnel have clear, unambiguous pro­ not be changed. Changes to the database can signed for military use" to "commercial cedures to apply to each license application. be made only by computer personnel within utility cargo trucks" or "vehicles." The the Operations Division with the specific au­ former term is consistent with the terms Adequate Documentation for Many Changes thorization of the Director, Office of Infor­ used in the export administration regula­ Not Provided by Bureau Personnel mation Resources Management. tions as the general description of the We reviewed the 39 changes made to other We found that Bureau personnel forwarded trucks. We found no changes to general de­ agency positions to determine whether the a list of the previously stated changes to scriptions of other licensed commodities changes were well documented and sup- BXA's Office of Information Resources Man- March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5755 agement, with a request to change the per­ tion of the Bill of Rights to the United States coin beginning not later than 3 months after the manent licensing database. OffiM officials Constitution for a period of 2 years after issu­ date of the enactment of this Act. This Director acknowledged that they changed the license ance. After the 2-year period, the bicentennial of the United States Mint shall convene the De­ records solely on the basis of the highlighted coin shall have its design changed in accord­ sign Panel established under subsection (e) list and oral assurances by licensing officials ance with the provisions of this subsection. All which shall select 10 designs to be submitted to that the changes were justified. They neither such redesigned coins shall con/orm with the in­ the Secretary who shall select the final design. reviewed the documentation used to support scription requirements set forth in paragraph (1) (b) ONE DOLLAR SILVER COINS.- the changes nor requested copies to maintain of this subsection.". (1) /SSUANCE.-The Secretary shall mint and in case questions arose in the future. (b) Minting and Jssuance.-The minting of issue not more than 900,000 one dollar coins OffiM officials should have required au­ the first coin selected for redesign under section each of which shall- thorization and sufficient supporting docu­ 5112(d)(3) of title 31, United Stated Code, shall ( A) weigh 26.73 grams; (B) have a diameter of 1.5 inches; and mentation before changing permanent begin not later than one year after the date of (C) be composed of 90 percent silver and 10 records in the system. Changing system data enactment of this Act, and the issuance shall percent copper. · without support compromises the system's begin as soon as practical thereafter. (2) DESIGN.-The obverse design of the one integrity and confidentiality. SEC. 502. SELECTION OF DESIGNS. dollar coins shall be emblematic of James Madi­ RECOMMENDATIONS The design changes required by the amend­ son, the fourth President of the United States. We recommend that the acting Under Sec­ ments made by section 501 shall take place at The reverse design shall be emblematic of James retary for Export Administration take the the discretion of the Secretary of the Treasury Madison's home, Montpelier, between the years following actions: and shall be phased in over 3 years after the 1751 and 1836. The Director of the United States 1. Ensure that any future changes to ex­ date of enactment of this Act. After the expira­ Mint shall sponsor a nationwide open competi­ port license information submitted to Con­ tion of one year after the second redesigned coin tion for the design of the one dollar coin begin­ gress and to the Export Control Automated is put into circulation, the Congress may, at its ning not later than 3 months after the date of Support System are authorized and ade­ discretion, direct the Secretary to reconsider the the enactment of this Act. The Director of the quately supported with appropriate docu­ design of any redesigned coin. In selecting new United States Mint shall convene the Design mentation. designs, the Secretary shall consider, among Panel established under subsection (e) which 2. Retain complete documentation of the other factors, thematic representations of the shall select 10 designs to be submitted to the Sec­ positions of all agencies involved in process­ following concepts from the Bill of Rights: free­ retary who shall select the final design. ing export licenses. dom of speech and assembly; freedom of the (C) HALF DOLLAR SILVER COINS.- . 3. Ensure that the system database accu­ press; the right to due process of law; and other (1) ISSUANCE.-The Secretary shall mint and rately reflects all agency positions. appropriate themes. The designs shall be se­ issue not more than 1,000,000 half dollar coins 4. Clarify the procedures in the Licensing lected by the Secretary upon consultation with each of which shall- Officers' Operating Manual for the referral to the Commission of Fine Arts. All coins minted ( A) weigh 12.50 grams; under section 501 shall bear the inscription "IN (B) have a diamter of 30.61 millimeters; and the Defense Department of license applica­ (C) be composed of 90 percent silver and 10 tions for computer parts and components in­ GOD WE TRUST" and such other inscriptions as are required by law. percent copper. tended for shipment to specific countries. (2) DESIGN.-The design of the half dollar sil­ SEC. 503. REDUCTION OF THE NATION'S DEBT. 5. Ensure that the Licensing Officers' Oper­ ver coins shall be emblematic of the first ten ating Manual is reviewed to eliminate other Section 5132(a)(l) of title 31, United States Amendments of the Constitution of the United conflicting or confusing licensing proce­ Code, is amended by inserting after the 3rd sen­ States, known as the Bill of Rights. The Direc­ dures. tence the f-0llowing: "Any profits received from tor of the United States Mint shall sponsor a the sale of uncirculated and proof sets of such nationwide open competition for the design of coins shall be deposited by the Secretary in the the half dollar coin beginning not later than 3 CONFERENCE REPORT ON H.R. 3337, general fund of the Treasury and shall be used months after the date of the enactment of the WHITE HOUSE COMMEMORATIVE for the sole purpose of reducing the national Act. The Director of the United States Mint COINS debt.". shall convene the Design Panel established SEC. 504 NO NET COST TO THE GOVERNMENT. under subsection (e) which shall select 10 de­ Mr. HUBBARD submitted the follow­ The Secretary of the Treasury shall take such signs to be submitted to the Secretary who shall ing conference report and statement on actions as may be necessary to ensure that the select the final design. the bill (H.R. 3337) to require the Sec­ minting and issuance of the coins referred to in (d) /NSCRIPTIONS.-All coins minted and is­ retary of the Treasury to mint coins in section 501 do not result in any net cost to the sued under this Act shall bear a designation of commemoration of the 200th anni ver­ Government. the value of the coin, an inscription of the year sary of the White House, and for other SEC. 505. DENOMINATIONS, SPECIFICATIONS, of issue and inscriptions of the words "Liberty", purposes: AND DESIGN OF COINS. "In God We Trust", "United States of Amer­ (a) IN GENERAL.-The fourth sentence of sec­ ica", and "E Pluribus Unum". CONFERENCE REPORT (H. REPT. 102-454) tion 5112(d)(l) of title 31, United States Code, is (e) DESIGN PANEL.-The Design Panel referred The committee of conference on the dis­ amended by striking '', half dollar, and quarter to in subsections (a), (b), and (c) shall consist of agreeing votes of the two Houses on the dollar". the following members: amendment of the Senate to the bill (H.R. (b) TECHNICAL AMENDMENTS RELATING TO IN­ (1) The Chairperson of the Commission of Fine 3337), to require the Secretary of the Treas­ SCRIPTION REQUIREMENTS.-Section 5112(d)(l) of Arts. ury to mint coins in commemoration of the title 31, United States Code, is amended- (2) The president of the James Madison Memo­ 200th anniversary of the White House, and (1) in the 1st sentence, by inserting "shall" rial Fellowship Foundation. for other purposes, having met, after full and before "have"; and (3) The Executive Director, National Numis­ free conference, have agreed to recommend (2) in the 2nd and 3rd sentences, by striking matic Collection, the Smithsonian lnstitution. and do recommend to their respective Houses "has" and inserting "shall have". (4) A representative member of the American Numismatic Association. as follows: TITLE VI-JAMES MADISON COINS That the House recede from its disagree­ (5) A representative member of a national SEC. 601. SHORT TITLE. sculpture society or association. ment to the amendment of the Senate and This title may be cited as the "James Madi­ (6) Two representatives of the United States agree to the same with amendments as fol­ son- Bill of Rights Commemorative Coin Act". Mint selected by the Director of the United lows: States Mint. In lieu of the matter proposed to be in­ SEC. 602. COIN SPECIFICATIONS. serted by the Senate amendment, insert the (a) FIVE DOLLAR GOLD COINS.- The Secretary shall reimburse the members of following: (1) ISSUANCE.- The Secretary of the Treasury the Design Panel for per diem expenses and (hereafter in this Act referred to as the "Sec­ other official expenses from the revenues re­ TITLE V-COINS retary") shall mint" and issue not more than ceived from the sale of the coins. The Design SEC. 501. DESIGN CHANGES REQUIRED FOR CER· 300,000 five dollar coins each of which shall- Panel shall not be subject to the Federal Advi­ TMNCOINS. ( A) weigh 8.359 grams; · sory Committee Act (5 U.S.C. App.), and shall (a) IN GENERAL.-Section 5112(d) of title 31, (B) have a diameter of .850 inches; and terminate following the selection process set United States Code, is amended by adding at the (C) be composed of 90 percent gold and 10 per­ forth in subsections (a), (b), and (c). end the following new paragraph: cent alloy. (f) LEGAL TENDER.-The coins issued under ''(3) The design on the reverse side of the half­ (2) DESIGN.-The design of the five dollar this title shall be legal tender as provided in sec­ dollar and the quarter-dollar shall be selected coins shall be emblematic of the first ten Amend­ tion 5103 of title 31, United States Code. for redesign. The 1-cent, 5-cent and dime coins ments of the Constitution of the United States, SEC. 603. SOURCES OF Buu.ION. shall be considered for redesign. The first rede­ known as the Bill of Rights. The Director of the (a) Gow.-The Secretary shall obtain gold for signed coin shall have a design commemorating United States Mint shall sponsor a nationwide minting coins under this title pursuant to the the two hundredth anniversary of the ratifica- open competition for the design of the five dollar authority of the Secretary under existing law. 5756 CONGRESSIONAL RECORD-HOUSE March 16, 1992 (b) SILVER.-The Secretary shall obtain silver that Act as funds contributed from private H.R. 3337 was amended during floor consider­ for minting coins under this Act only from sources. In accordance with the purposes of the ation in the Senate. The Senate amendment stockpiles established under the Strategic and James Madison Fellowship Program, the funds contained a provision that would have re­ Critical Materials Stock Piling Act (50 U.S.C. 98 transmitted to the Trust Fund shall be used to quired the Secretary of the Treasury to rede­ et seq.). encourage teaching and graduate study of the sign the reverse sides of five circulating SEC. 604. ISSUANCE OF COINS. Constitution of the United States, its roots, its coins-the half dollar, quarter, dime, nickel (a) FIVE DOLLAR COINS.-The five dollar coins formation, its principles, and its development. and penny. The Senate amendment on coin minted under this Act may be issued in uncir­ SEC. 608. AUDITS. redesign became Title V of H.R. 3337. The culated and proof qualities and shall be struck The Comptroller General of the United States House and Senate conferees agreed to an at the United States Mint at West Point, New shall have the right to examine such books, amended Title V with the following changes: York. records, documents, and other data as may be Title V as reported out of conference re­ (b) ONE DOLLAR COINS AND HALF DOLLAR related to the expenditure of amounts transmit­ quires the redesign of the reverse sides of COINS.-The one dollar and half dollar coins ted under section 607 of this title. The expendi­ two coins-the half dollar and the quarter. minted under this Act may be issued in uncir­ tures and audit of surcharge funds deposited in The designs will be phased in over a three culated and proof qualities, except that not the James Madison Memorial Fellowship Trust year period and the minting of the first coin more than one facility of the United States Mint Fund under section 607 of this Act shall be done will commence one year from the date of en­ may be used to strike any particular combina­ in accordance with section 812 of the James actment of the legislation. Madison Memorial Fellowship Act (20 U.S.C. Section 502, Design Changes Required for tion of denomination and quality. Certain Coins, includes new language that (c) COMMENCEMENT OF ISSUANCE.-The coins 4511). Annual reports shall be submitted by the Chairman of the James Madison Memorial Fel­ after the second permanently redesigned authorized and minted under this title may be coin has been in circulation for at least one issued beginning on January 1, 1993. lowship Foundation to both Houses of Congress on all expenditures of surcharge funds. year then the Congress may direct the Sec­ (d) TERMINATION OF AUTHORITY.-Coins may retary of the Treasury to reconsider the de­ not be minted under this title after December 31, SEC. 609. GENERAL WAIVER OF PROCUREMENT sign on the coins. 1993. REGULATIONS. A technical amendment has been added at (a) IN GENERAL.-Except as provided in sub­ SEC. 606. SALE OF COINS. the end of Title V to clarify existing law section (b), no provision of law governing pro­ (a) IN GENERAL.-Notwithstanding any other that no inscriptions, including "In God We curement or public contracts shall be applicable provision of law, the Secretary shall sell the Trust", can be removed from any circulating to the procurement of goods and services nec­ coins minted under this title at a price at least coins. essary for carrying out the provisions of this equal to the face value, plus the cost of minting The conferees agreed to strike section 503, title. Design On Obverse Side of Coins, from Title and issuing the coins (including labor, mate­ (b) EQUAL EMPLOYMENT 0PPORTUNITY.-Sub­ rials, overhead, distribution, and promotional V of H.R. 3337. Section 503 would have di­ section (a) shall not relieve any person entering rected the Secretary of the Treasury to con­ expenses). into a contract under the authority of this title (b) BULK SALES.-The Secretary shall make sider redesigning the head (obverse) side from complying with any law relating to equal coins. Title Vas amended contains no provi­ any bulk sales of the coins minted under this employment opportunity. Act at a reasonable discount. On page 15, between lines 19 and 20 of the sion to redesign the obverse (head) side of (c) PREPAID ORDERS.-The Secretary shall ac­ House engrossed bill, insert the following: coins. This section redesignates sections 504 cept prepaid orders for the coins minted under SEC. 400. SHORT TITLE. and 505 as sections 503 and 504, respectively. this title prior to the issuance of such coins. The conferees agreed to add a new section This title may be cited as the "Frank Annun­ 505, Financial Assurances, to Title V that Sale prices with respect to such prepaid orders zio Act". shall be at a reasonable discount. And the Senate agree to the same. would ensure that there is no net cost to the federal government in implementing coin re­ (d) SURCHARGES.- All sales of coins minted ESTEBAN EDWARD TORRES, under this Act shall include a surcharge of $30 design. Both the Congressional Budget Office CARROLL HUBBARD, and the Office of Management and Budget es­ per coin for the five dollar coins, $6 per coin for DOUG BARNARD, JR. the one dollar coins, and $3 per coin for the half Managers on the Part of the House. timate that coin redesign will produce a dollar coins. profit to the United States Treasury. The DON RIEGLE, SEC. 606. FINANCIAL ASSURANCES. conferees intend that the United States ALAN CRANSTON, Treasury implement the legislation in such a (a) No NET COST TO THE GOVERNMENT.-The Managers on the Part of the Senate. manner as to produce an overall budget sav­ Secretary shall take such actions as may be nec­ ings to the federal government. essary to ensure that minting and issuing coins JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The House agreed to the Senate Amend­ under this title will not result in any net cost to ment as amended by a three to two vote. the United States Government. The managers on the part of the House and TITLE VI (b) PAYMENT FOR COINS.-A coin shall not be the Senate at the conference on the disagree­ issued under this Act unless the Secretary has ing votes of the two Houses on the amend­ H.R. 3337 was amended on the Senate floor received- ment of the Senate to the bill (H.R. 3337) to to add Title VI, The James Madison Bill of (1) full payment for the coin; mint White House Commemorative Coins Rights Commemorative Coins Act, which (2) security satisfactory to the Secretary to in­ and for other purposes, submit the following was not included in the House-passed meas­ demnify the United States for full payment; or joint statement to the House and the Senate ure. The conference report contains the Sen­ (3) a guarantee of full payment satisfactory to in explanation of the effect of the action ate provision. the Secretary from a depository institution the agreed upon by the managers and rec­ Objective: The Senate bill contained a pro­ deposits of which are insured by the Federal De­ ommended in the accompanying conference vision not included in the House bill that report. would authorize in 1993 the minting and issu­ posit Insurance Corporation or the National The Senate amendment added a provision Credit Union Administration Board. ance of $5 gold coins, $1 silver coins, and to redesign the reverses of the nation's cir­ half-dollar silver coins to commemorate (c) REPORTS TO CONGRESS.-Not later than fif­ culating coinage and a provision to mint a James Madison and the first 10 Amendments teen days after the last day of each month, the James Madison/Bill of Rights Commemora­ of the Constitution, known as the Bill of Secretary shall transmit to the Committee on tive coin. Rights. Banking, Finance, and Urban Affairs of the The House recedes from its disagreement This Title authorizes the Secretary of the House of Representatives and the Committee on to the amendment of the Senate by agreeing Treasury to mint and issue not more than Banking, Housing, and Urban Affairs of the to a Senate amendment to Title V on coin 300,000 gold coins; 900,000 silver dollars; and Senate a report detailing activities carried out redesign agreed to in conference, and agree­ 1,000,000 half dollars. These are the lowest under this title during such month. The report ing to Title VI as passed the Senate. The mintage levels for a 3-coin commemorative shall include a review of all marketing activities Senate agreed to the House amendment to program since the minting of commemora­ and a financial statement which details sources Title IV to rename the title "The Frank An­ tive coins was re-instated in the early 1980s. of funds, surcharges generated, and expenses nunzio Act". Surcharges accrued from the sales of these incurred for manufacturing, materials, over­ The differences between the House bill and coins will be transmitted to the James Madi­ head, packaging, marketing, and shipping. No the Senate amendment, and the substitute son Memorial Fellowship Trust Fund, estab­ report shall be required after January 15, 1994. agreed to in conference are noted below, ex­ lished in 1986 by the James Madison Memo­ SEC. 607. DISTRIBUTION OF SURCHARGES. cept for clerical corrections, conforming rial Fellowship Act (20 U.S.C., 4501 et seq.). The surcharges received by the Secretary shall changes made necessary by agreements The Comptroller General of the United be transmitted promptly to the James Madison reached by the conferees, and minor drafting States shall have the right to examine such Memorial Fellowship Trust Fund established in and clarifying changes. books and records related to the expenditure 1986 by the James Madison Memorial Fellowship TITLE V-COINS of these surcharges. Act (20 U.S.C. 4501 et seq.). Such transmitted H.R. 3337 passed the Houses and was re­ The surcharges will be used solely to fund amounts shall qualify under section 811(a)(2) of ferred to the Senate on November 26, 1991. fellowships for high-school teachers and po- March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5757 tential high-school teachers of American his­ deficit for the following fiscal year of THE BUDGET COMMITTEE'S DEFICIT REDUCTION tory and American government. This is a na­ $352 billion, a figure which is no doubt PLAN tional program and every state benefits low if prior experience is a guide. All How do we reduce the deficit? I be­ equally. this from an administration that says lieve we must rigorously support, and This Title also requires that the program work to improve, the bold and thought­ operate at no net cost to the Government. It it is in favor of a balanced budget but requires the chairman of the Fellowship has never proposed one. ful plan developed by the Budget Com­ Foundation to submit annual reports to both These figures are simply unaccept­ mittee and outlined in its December Houses of Congress on all expenditures of able. Our Federal Government, Con­ 1991 report, "Restoring America's Fu­ surcharge funds. gress and the President, have failed the ture: Preparing the National for the ESTEBAN EDWARD TORRES, American people in allowing this prob­ 21st Century." CARROLL HUBBARD, lem to develop. We must support those leaders in DOUG BARNARD, Jr., Congress who are committed to solving Managers on the Part of the House. Former Council of Economic Advi­ this problem. I congratulate the Budg­ DON RIEGLE, sors Chairman Charles Schulze said: et Committee chairman for his leader­ ALAN CRANSTON, [W]e need to dispel the illusion that we ship and pledge my support for his ef­ Managers on the Part of the Senate. have done enough or that the economy can forts. grow its way out of the budget deficit. That The dynamics are clear. Our huge deficit is still the nation's number one eco­ borrowing and escalating debt are cor­ THE FEDERAL BUDGET DEFICIT: A nomic problem. roding our economy. The economists SILENT CANCER That was 1988. There is no doubt that and exports-I most certainly am not The SPEAKER pro tempore. Under a the deficit is still the Nation's No. 1 one-are in major agreement as to previous order of the House, the gen­ economic problem and a root cause of what we need to do. Barry Bosworth tleman from Nebraska [Mr. HOAGLAND] the current recession. states it as well as it can be stated in is recognized for 30 minutes. THE ECONOMIC CONSEQUENCES OF HUGE DEBT testimony appearing at the end of my statement today. Mr. HOAGLAND. Mr. Speaker, as The most important reason to be Robert D. Reischauer, Director of the Congress struggles to develop the fiscal concerned about the deficit and the na­ Congressional Budget Office, presented year 1993 Federal budget, I want to tional debt is the effect on the econ­ compelling testimony to the House take a few minutes to share some of omy. The borrow-and-spend policies of Government Operations Committee my concerns. I am extremely alarmed the 1980's are bringing our economy to during hearings on eliminating the bar­ at the size of the Federal budget deficit its knees. Real wages are declining. riers between the three categories of and the National debt. They both have Our rate of productivity increase is de­ spending that are now in law. He testi­ reached all-time record highs. clining. As a result, our standard of liv­ fied that real private and public sav­ Business as usual has got to stop. We ing is declining. Corporations and Gov­ ings as a share of GNP averaged 7.3 per­ must take some real steps to reduce ernment alike no longer save and in­ cent from 1952 through 1979, but fell to the deficit because it is corroding our vest. Instead they borrow and spend. 2.9 percent in 1980 through 1990. He economy. It is a silent cancer eating We are in the middle of a long-term cited a Federal Reserve Bank of New away at our economic health. economic downturn caused by our col­ York study that found that the decline THE MAGNITUDE OF THE DEBT lective lack of saving and investing. in saving during the 1980's reduced the Appended at the end of my statement These economic relationships are de­ productive capacity of our economy by is a table from the House Budget Com­ scribed extremely well in the testi­ 5 percent. He pointed out that if we do mittee's analysis of President Bush's mony of Barry Bosworth of the Brook­ not improve our savings rate, the loss fiscal year 1993 budget which shows ings Institution given in January to in potential GNP will grow to 10 per­ that the last time our Federal budget the Subcommittee on Economic Sta­ cent by the end of the decade. had a surplus was in fiscal year 1969, 24 bilization of the House Committee on Further, I have introduced and hope years ago. When President Carter left Banking, Finance and Urban Affairs, Congress will consider H.R. 4060, a bill office, the deficit was $70 billion. In the which I have attached to my state­ which would require the President to 1980's, the deficit literally exploded, ment. I recommend Mr. Bosworth's transmit to Congress, the budget com­ reaching $221 billion in 1986. views for your consideration. They suc­ mittees to report, and the Congress to We should stop to note that it took cinctly state the case. consider, a balanced budget each fiscal this Nation over 200 years to accumu­ THE SHEER WEIGHT OF INTEREST PAYMENTS year. This bill attempts to put some late $1 trillion of debt. In just 5 years discipline back into the process and to of the 1980's, we doubled that amount. Another major concern about our put the responsibility where it belongs, According to James E. Lebherz in the monstrous debt is that it has strapped both with the President and with the February 9, Washington Post, during us with huge interest payments. We are Congress. It sounds so simple and yet, the 4 years of the Bush administration, paying some $208 billion in interest neither the President nor the Congress 1988 to 1992, the Federal debt will have payments in fiscal year 1992 which is are producing balanced budgets. increased by $1.42 trillion, an average some $2,000 per taxpayer. Interest pay­ But we know procedural solutions of $355 billion per year. He says: ments in 1981 were 2.3 percent of GNP; alone will not solve the problem. What today it is 3.5 percent. Not only are an­ During President Reagan's 8 years in office we need most of all is the political will (1980 to 1988), the Federal debt increased $1.69 nual $208 billion in interest payments to implement unpopular solutions. trillion, or an average of $211 billion per an astounding amount of money, it is WHAT HAS BECOME OF THE AMERICAN SPIRIT? year. This compares with the addition of $579 money that could be better spent else­ This .brings me to my final question: billion to the Federal debt through the ad­ where. We have so many other defi­ What has become of the American spir­ ministrations of Johnson, Nixon, Ford, and cits-social deficits-that need the at­ it? Carter, during the years 1963--80, an average tention of Government. We do not have What has made America great and of $35 billion per year. money to pay for so many of the things strong has been a willingness of our And now we have before us President we really need-better schools, im­ people to sacrifice for the future and to Bush's fourth budget, which proposes a proved infrastructure, cancer research, invest in the future. deficit of $399 billion in fiscal year 1992, energy conservation R&D, long-term We have always been frugal. We have revised upward from $281 billion, a care, agricultural exports, to name a always invested in our economy and in record high. And the figures would be few. As our esteemed colleague, Con­ our children. Where have we gone higher, well over $400 billion, without gressman LEE HAMILTON, puts it, an­ wrong? Where is that old American the change to accrual accounting the nual payments solely for interest are spirit? Office of Management and Budget has "the most useless kind of Government We no longer save and invest. Instead requested. The budget also projects a spending.'' we borrow and spend. The prescription 5758 CONGRESSIONAL RECORD-HOUSE March 16, 1992 is clear: We must shift our economy around for many years, but the preferred re­ nize that the benefits of corrective policies from one dependent on borrowing and sponse was to ignore it and any solution that will take many years to become apparent. spending to one driven by investment hinted at the need for current sacrifice. Third, we need to understand the extent to and exports. To do that, we must de­ After a decade or more in which Americans which changes in the global system will re­ have been unwilling to invest in the future, quire fundamental changes in the way we ad­ clare war on the Federal deficit and the they should not be surprised that the future dress economic policy options. The end of national debt-now. looks a little grim. the cold war provides us with new opportuni­ To find the spirit for this effort, we The secular deterioration of the American ties but also problems. An appropriate anal­ need not look forward to some magic economy is most evident in two key areas. ogy might be that the Soviet Union has col­ solution. We need to simply look back First, the real income of the average Amer­ lapsed, but the fight has also left us reeling to the old-time American values. ican worker has been basically stagnant against the ropes. We will be able to free up In "A Nation's Strengths," Ralph since the early 1970s. The fundamental rea­ a large amount of resources that were pre­ Waldo Emerson wrote: son is the collapse of productivity growth. viously devoted to national defense, but As shown in Figure 2, output per labor hour there is also a huge backlog of economic and Not gold, but only man can make grew by only O.t>-1.0 percent annually since social problems that we ignored for too long a people great and strong; 1973, compared to 2-2.5 percent annually in and will be very costly to fix. In addition, Men who, for truth and honor's sake prior decades. That growth has barely been the restructuring of the defense sectors will stand fast and suffer long. adequate to match the increased cost of itself be a painful process for many of the Brave men who work while others sleep, health and other fringe benefit programs workers and communities most affected. In who dare while others fly, with the result that wage incomes have re­ the world economy we have fallen from a po­ They build a nation's pillars deep mained unchanged. The impact of slow wage sition of dominance to one that is optimisti­ and lift them to the sky. growth on family incomes was offset for a cally characterized as first among equals. We Tax and spending policies enacted by time by the trend toward an increased num­ are still important to the rest of the world, the Congress over the last two decades ber of workers per family. That option will but mainly as a market in which to sell simply do not reflect that spirit of largely vanish in the 1990s, as the two-earner good. We offer little in the way of products family is now the norm, and female labor or services that cannot be obtained cheaper America, which has always been ours. force participation rates are very similar to or with higher quality elsewhere. In other We need simply reclaim it. those of males. words, Americans face a far more competi­ STATEMENT OF BARRY P. BOSWORTH, THE The second problem is that wage incomes tive economic environment. In addition, BROOKINGS INSTITUTION BEFORE THE SUB­ have become far more unequal. Workers in with the emergence of a global capital mar­ COMMI'ITEE ON ECONOMIC STABILIZATION OF the top portion of the income distribution ket many of the benefits of Keynesian-style THE COMMI'ITEE ON BANKING, FINANCE AND have continued to achieve real wage gains fiscal stimulus flow abroad, and there is a URBAN AFFAIRS, JANUARY 28, 1992 equal to or in excess of those of prior decades weakening link between increases in domes­ Thank you for the opportunity to discuss while wage rates have declined dramatically tic saving and investment in domestic indus­ some aspects of the current economic situa­ at the lower end of the wage distribution. I tries. Saving is important because it deter­ tion with the members of this committee. would not identify this with any concept of mines the future wealth of Americans; but, if Clearly, the economic recovery that began in a hollowing out of the middle class because we want investment to take place in Amer­ the Spring and seemed underway during the . it is a relatively uniform pattern throughout ica, we will have to offer something that is summer months has stalled out. Most eco­ the income distribution. The trend has been attractive to capital in terms of a well­ nomic forecasts now point to the Spring of exacerbated for family incomes for several trained workforce and an efficient economic 1992 as the earliest time at which we can ex­ reasons. First, there appears to be an in­ infrastructure. Economic policies will have pect any significant expansion of the econ­ creasing tendency for likes to marry likes, to be formulated with greater attention to omy. Even then the recovery will be unusu­ men at the top of the wage distribution competitive factors and a longer time hori­ ally weak with the unemployment rate pro­ marry women at the top. Second, a growing zon than the·next election. jected to remain above 7 percent throughout proportion of families with children have a The most fundamental problem that we 1992. While I recognize that this is an elec­ single parent. In 1990 24 percent of all fami­ need to address is the decline in productivity tion year and that there are strong pressures lies with children had a single parent com­ growth. While changes in annual growth to find a quick fix before November, the cur­ pared with 11 percent in 1970. Finally, public rates of 1-2 percent may seem small to most rent emphasis on short-term fiscal measures policy has done less than in prior decades to people, the cumulative effect of the slow­ to stimulate consumer spending reflects a offset income inequality through tax and down, extending over the past 18 years, has serious misdiagnosis of the country's eco­ transfer programs. cost the average American worker 30 percent nomic problems. The business cycle reces­ In trying to reverse the secular deteriora­ of wage income. As we look ahead to the sion is actually quite mild by historical tion of the American economy let me say a 1990s there is little reason to anticipate that standards and is best dealt with by relying few words about the things I believe we productivity growth will improve on its own. on monetary policy to engineer a recovery. should avoid. First, current efforts to blame Furthermore, much lower rates of labor It is too late for fiscal policy to play a posi­ foreigners for our problems, while politically force growth, in combination with the con­ tive role in the short-term recovery, and it popular, are basically absurd. The problems tinued small increases in output per worker, has become too immersed in ideological con­ that we have are the result of our own ac­ will translate into smaller increases in ag­ flicts to be an effective stabilization tool. tions and will not be solved by pointing the gregate GDP. The potential long-term Temporary tax cuts are too likely to become finger at other countries. There are problems growth rate of the economy has fallen to permanent, worsening the structural imbal­ in the international economy, but 90 percent only 2-2.5 percent annually. ances in the U.S. economy. Instead, it is of the goods that Americans consume are Although economists still differ on a full vital that the Congress and the President produced by Americans and the living stand­ explanation of the decline in productivity adopt a perspective that extends beyond the ards of Americans will be determined over­ growth since 1973, we do agree on the three election and address the long-term fun­ whelmingly by progress in improving produc­ basic determinants of high and rising living damental problems of the economy. tivity in the domestic economy. In fact, if standards. They are: (1) the need for a large The economic difficulties that the United anything we should use economic conditions amount of modern capital per worker; (2) an States faces today are not new, they have in other countries as an example of how we emphasis on the creation and rapid introduc­ little to do with a minor business cycle, they could do better. Years ago we use to encour­ tion of new technologies, both in the form of will not be solved by a tax cut, and they will age other countries to become more like us. new products and more efficient processes not go away after the election. They include: Today, they look at our economic and social for producing existing products; and (3) a (1) stagnant levels of real wages and family problems and say no thanks. well-trained workforce. Improvements in incomes, (2) a growing inequality of incomes, Second, we should avoid a view of the situ­ these three areas account for an· overwhelm­ (3) excessively high levels of porporate and ation as a crisis where the consequence of in­ ing portion of the growth of living standards. household debt, (4) a severely weakened fi­ action is a near-term economic collapse. In contrast, issues like industrial and trade nancial system, (5) extremely low rates of Without action the future of the U.S. econ­ policy pale to insignificance. Yet, in all national saving and capital formation, and omy is one of gradual economic decline rel­ three of 'these dimensions I believe that the (6) a government budget deficit that contin­ ative to the performance of other economies U.S. performs less well than it did in the ues to spiral upward. None of these problems and particularly relative to its own poten­ past and less well than many other countries should come as a surprise to Americans or tial; but an emphasis on crisis can lead to ill­ with whom we now compete in a global eco­ their elected representatives, and they are conceived policies which in the search for a nomic system. mistaken if they believe that they can be quick fix actually make the situation worse. Saving and Capital Formation. The first solved with another tax cut and more con­ Having neglected evident signs of economic step to increasing the nation's rate of capital sumption. The evidence of decay has been decay for nearly two decades, we must recog- formation is to raifle the national rate of March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5759 saving. We need to recognize that Americans prescription and politically unattractive, the consumption tax equivalent to about 50 have been on a consumption binge through­ truth is that they are the only sure means of cents on a gallon of gasoline. Phasing in out the 1980s, living way beyond their means. increasing national saving. these measures over 5 year period, together Today, Americans save less than 3 percent of With respect to the budget deficit, I hope with feasible reductions in expenditures the national income (Table 1). In addition, that the recently released CBO projections of would basically eliminate the budget deficit. during the 1980s we borrowed from foreign­ the budget deficit will convince the Congress A reduction in the budget deficit would ers, or financed through the sale of assets, a that the 1990 budget agreement was a mean­ benefit the economy directly in two ways. cumulative total of Sl trillion dollars, equiv­ ingless piece of political gamesmanship and The removal of the government as a major alent to about 6 percent of national wealth. that the budget deficit will not cure itself. claimant on funds in capital markets would We have become the world's largest debtor The basic problem is that growth built into free up resources for capital formation. In nation. Should Americans really be surprised existing programs requires an expansion of addition, lower interest rates would reduce that they have problems competing with the economy and tax revenue, adjusted for foreign financial investments in the United countries that save and invest 10-15 percent inflation, of nearly 2.5 percent annually. States and result in a significant decline in of their income? Since the potential growth of the economy the value of the dollar. At a lower exchange The decline in saving is evident in both the has declined to 2 to 2.5 percent, there is no rate American industry would be far more private and the public sector. Private rates growth dividend with which to finance new competitive in world markets and the trade of saving have fallen by about 3 percent of programs or reduce the deficit. deficit would disappear. The major bene­ national income, and increased public dis­ At the same time the notion that spending ficiaries would be workers in the manufac­ saving, the budget deficit, accounts for an­ is out of control is also largely a myth. The turing sector, precisely the area where the other 3 percent (See Table 1). Approximately term "entitlements" is basically a code word employment problems seem most severe. two-thirds of private saving must be used to for social security, yet the social security However, with the emergence of global cover the deficit of the federal government, program ls temporarily generating a large capital markets we can not be sure that an leaving very little for private capital forma­ surplus (Figure 5). It will also grow very increase in national saving is sufficient to tion. Within the private sector the decline slowly for several decades until the "baby­ lead to a matching increase in capital in­ occurred both in the corporate sector where boom" generation begins to retire. The defi­ vestment in the U.S. economy. I believe that businesses now pay out nearly all of their cit is concentrated in the unified budget we may have to consider additional measures profits in the form of interest on debt and which excludes social security; and within to increase the attractiveness of domestic in­ dividends, and within the household sector. that budget the growth of spending is con­ vestment. One unfortunate result of the 1986 Government policy has contributed to this centrated in two programs, health care and tax reform was that it shifted the tax on cap­ problem by encouraging an excessive reli­ interest on the public debt. The growth in ital from the capital income earned by ance on debt within the business sector; and, medicare and medicaid costs is not a prob­ Americans to the income from capital em­ although they attract less attention, lem unique to government: the same phe­ ployed in the United States, penalizing do­ through policies to discourage the funding of nomenon plagues private health insurance mestic investment. Rather than repeating broad-based employee retirement plans. programs. And the explosion of interest pay­ the mistakes of past tax incentives that re­ In this context, I find the current discus­ ments can be traced directly to the failure to sulted in serious distortions of investment, I sion of tax incentives to promote consump­ pay for past and current expenditures. In would prefer more fundamental reforms of tion symptomatic of the longer term eco­ fact, increased interest payments account capital income taxation that built on the nomic problem. If there is one thing the for nearly all of the growth in the budget base of the 1986 act. In this respect the index­ American economy does not need it is more deficit during the 1980s. The funds being ing of capital income to exclude the effects consumption, and one thing Americans don't spent on federal programs are actually a de­ of inflation is preferable to capital gains deserve is a reduction in their taxes. For clining share of national income (Figure 7). preferences. In addition, we could expand in­ over a decade Americans have been consum­ Furthermore, many of the reductions of pub­ vestment incentives and eliminate the exces­ ing too much. National saving has plum­ lic spending have been concentrated in the sive emphasis on debt financing of American meted and what little net investment takes investment accounts. When we speak of the corporations by converting the corporate in­ place is heavily financed by borrowing from importance of capital for raising productiv­ come tax to a tax on cash flows. This in­ abroad. At the same time, the public sector ity much of that involves the public infra­ volves allowing businesses to deduct all in­ deficit has ballooned as voters are unwilling structure. The public sector is one area in vestment outlays in the year they are made to accept cuts in programs that benefit them which the United States has been investing and eliminating the deductibility of interest or pay for them. The universal solution to too little, and the deterioration in the public payments on debt. One by-product of this re­ the budget deficit is to cut someone else's infrastructure seems obvious. form would be to drastically reduce the at­ program. While I understand the political Similarly, we are continuously bombarded traction of corporate buy-outs. popularity of a tax cut to promote consump­ with the notion that taxes have been rising Research and Development. Economic tion, it certainly seems absurd from an eco­ rapidly. Yet, the national accounts tell quite studies consistently find an extraordinarily nomic perspective. I recognize that the proc­ a different story. Effective rates of taxation, high return on investments in R&D, ranging ess of scaling back consumption to a level combining those of federal, state and local between 15 and 25 percent. It is something that the nation can afford on a long-term governments, have been basically constant that the United States is very good at. It is basis wlll be very painful, but the longer we over the last two decades, and excluding so­ also an activity in which the private sector delay the greater the future reductions. cial security the average rate has actually is likely to under-invest because of the risks The measures that government can under­ drifted down (See Figures 8 and 9). American and an inability to prevent nonparticipants take to encourage private saving are limited. families may be feeling pinched financially, from benefiting. Thus, there is a strong argu­ In particular, I believe that various tax gim­ but the reasons is a failure of their incomes ment for public financial support-particu­ micks that promise to increase private sav­ to rise before taxes, not a rising tax burden. larly, in the case of basis research where the ing through painless tax cuts wlll fall. We The Congress may be tempted to provide tax externalities are likely to be very large. In have had several decades in which to observe cuts as an offset to the stagnation of before­ the past much of the public funding of R&D that taxes have large effects on the composi­ tax incomes; but if it does so, the decline in was funneled through the defense budget. tion of individuals' saving-where the invest national savings, and productivity growth While there were some obvious spillovers to it-without leading to significant effects on will simply accelerate. the civilian sector, the increasingly special­ the total. Investment Retirement Accounts, I believe that the budget deficit can be ized nature of defense procurement reduced for example, lead savers to shift their funds eliminated only through a major increase in the value of the research to the general econ­ from taxable to nontaxable accounts but the taxes. A continued focus on expenditure re­ omy. On the other hand, Americans probably net gain in national saving is very small. I ductions alone or the elimination of waste · would have been unwilling to finance the in­ interpret proposals to provide tax reductions has become an excuse for doing nothing. vestments without a defense label. In any for private saving as yet another example of With respect to tax increases the major les­ case, this type of activity will decline with the problem. We are still looking for painless son from the economic research is the impor­ the general reduction in defense spending. answers-give me a tax cut and I will do tance of emphasizing reliance on the broad­ Outside of defense, the United States ranks good things with it. est possible tax base with the lowest possible below Germany and Japan in R&D spending In any case, I see no reason for government rates. For this reason the United States despite our emphasis on high technology. to seek to increase private saving at the cost should follow other countries in introducing In general, private outlays on R&D are ex­ of an increase in its own dissaving-further a value-added or consumption tax. A 5-per­ empt from taxation, but in the past we have tax cuts which wlll have to be financed by cent value-added tax would raise $100-150 bil­ gone so far as to provide an additional tax more borrowing. Higher private saving, off­ lion annually depending on precisely what credit. Such tax measures are fairly effective set by larger budget deficit, offer no benefit consumption expenditures were covered. In for promoting private development and com­ to the country as a whole. While reductions addition, I believe there are very strong eco­ mercialization of new technologies, but are in the budget deficit may seem like an old nomic arguments for imposing an energy less effective for basic research. It ls also dif- 5760 CONGRESSIONAL RECORD-HOUSE March 16, 1992 ficult to define R&D activities in the tax mented, it would have no significant impact 2 Business and Household Saving. Employee pension funds of State and local governments are allocated to household saving to match the treatment code in such a way that business will not dis­ on the workforce for another twenty years. of private pension funds. tort the basic intent. I believe there is still Thus, the United States has no choice but to 3 Percent of gross national product. a strong rational for direct public support of expand its efforts to retrain the least-skilled •Percent of disposable income. research activities that can be monitored by of the existing workforce. Yet, over the last Source: U.S. Department of Commerce, "Bureau of Economic Analysis, peer review processes. With the decline in two decades we have essentially eliminated U.S. national income and product accounts." Defense Department funding, the Congress these programs. We devote a far smaller should consider substantial increases in the share of our public funds to job training than funding of the National Science Foundation. is common practice in other countries. One Education and Job Training. A major rea­ additional suggestion that might be explored SPECIAL ORDERS GRANTED son for the historically high living standards would be to impose a general employment By unanimous consent, permission to of American workers was that they were bet­ tax of 2 or 3 percent of wages and rebate it back to those employers who provide job re­ .address the House, following the legis­ ter educated than workers in other coun­ lative program and any special orders tries. That is far less true today. While the training programs. educational systems of other countries have Finally. there is some emerging research heretofore entered, was granted to: improved, there is growing evidence that the suggesting that a significant part of Ameri­ (The following Members (at the re­ American system has actually deteriorated ca's problem with productivity growth and quest of Mr. THOMAS of Wyoming) to over time, at least at the primary and sec­ competitiveness is due to the failure of its revise and extend their remarks and in­ ondary level. In any case, it is not enough to managers. Productivity growth may have clude extraneous material:) do as well as in the past. In a global eco- slowed down because too many American Mr. RITTER, for 5 minutes, on March . nomic system an American worker can ex­ businessmen have ignored the production process and focused their attention on finan­ 17. pect to be paid no more than a worker of Mr. MILLER of Washington, for 60 equivalent skills in other countries, and cial restructuring and marketing as the keys there is no longer a shortage of workers with to success. Foreign automotive firms, for ex­ minutes, on March 18. the equivalent of an American high school ample, have been very successful using Mr. RIGGS, for 60 minutes each day, American workers and it would appear that on March 18, 19, and 20. education. This issue has nothing to do with management may be the distinguishing fea­ if Ms. MOLINARI, for 60 minutes, on immigration because the workers don't ture of the competitive outcome in that mar­ come here, the capital and technology can ket. American firms are often criticized for March 19. still go to them. an excessive focus on short-term benefits to Mr. THOMAS of Wyoming, for 5 min­ Educational attainment is also a major utes, today. factor accounting for the growing disparity stockholders and for ignoring longer-term of wage rates in the United States. The pre­ factors, such as quality and relationships (The followin,g Members (at the re­ mium paid to workers with a college edu­ with their workers and customers. In review­ quest of Mr. GoNZALEZ) to revise and cation is rising, while it is increasingly dif­ ing the research on the internal structure of extend their remarks and include ex­ Japanese corporations, I believe that they traneous material:) ficult to find employment for workers who may have a better idea. American workers cannot read or write. Most of the increased would benefit from policies that seek to en­ Mr. EDWARDS of California, for 5 min- wage dispersion cannot be explained by courage foreign firms to locate in the United utes, today. changes in industrial structure because it is States. For example, Americans who work Mr. ANNUNZIO, for 5 minutes, today. just as evident within industries as among for Honda probably face a better job future Mr. PANETTA, for 5 minutes, today. industries. At all levels industry requires a than those who work for Chrysler or General more skilled workforce; and, as long as such Mrs. LOWEY of New York, for 5 min- Motors. utes, today. . workers remain scarce, their wages and job Let me conclude by simply restating my opportunities will expand relative to the belief that the U.S. economy has been suffer­ Mr. HOAGLAND, for 30 minutes, today. less-skilled. I admit that there has also been ing from a secular deterioration of its per­ a widening of wage rates for workers of equal formance relative to which the current re­ educational attainment that we do not fully cession is a minor problem. I also believe understand. Apparently employers have cho­ that most of this decline can be attributed to EXTENSION OF REMARKS sen to discriminate more sharply in the a failure to invest adequately in three key By unanimous consent, permission to wages they offer to their best workers even areas of physical capital, research and devel­ revise and extend remarks was granted among those of equal educational attain­ opment programs, and the educational qual­ to: ment. Still, I think that differences in job ity of our population. The solution to this skills is the major factor behind the growing problem is relatively simple, but it does in­ (The following Members (at the re­ inequality of wages. volve some actions that are thus far unac­ quest of Mr. THOMAS of Wyoming) and The United States can respond to this situ­ ceptable to the American public or their to include extraneous matter:) ation in one of two ways. We could attempt elected officials. Americans will have to Mrs. MORELLA. to stimulate the demand for workers with make some sacrifices in terms of reduced Mr. VANDER JAGT. limited skills by protecting our older indus­ consumption and they will have to pay more (The following Members (at the re­ tries, or we can attempt to upgrade the skill taxes. quest of Mr. GONZALEZ) and to include level of the workforce. I believe that the first option is a losing proposition and that by at­ extraneous matter:) tempting to slow down the restructuring of TABLE 1.-NET SAVING AND INVESTMENT AS A SHARE OF Mr. ANDERSON in 10 instances. American industry we limit the potential for NET NATIONAL PRODUCT, 1951-90 Mr. GoNZALEZ in 10 instances. future growth in living standards. American Mr. BROWN in 10 instances. workers are not threatened by cheap foreign Percent of net national product Mr. ANNUNZIO in six instances. labor. They are losing out in competition Item 1951- 1961- 1971- 1981- 1986- Mr. HOYER. with workers in other advanced industrial 60 70 80 85 90 1990 Mr. LIPINSKI. countries who are actually paid as much or 1 Mr. TRAFICANT in four instances. more than they. NET SAVING Private saving 2 ...... 8.6 9.7 9.9 9.5 7.1 6.5 Mr. MANTON. Instead, we must find the means to accel­ Government saving .. - .7 - .9 - 2.0 - 4.6 - 4.0 - 4.1 erate the process of improving education and Mr. F ALEOMAVAEGA. job training. While I fully agree that money TOT AL NATIONAL alone will not solve this problem, Americans savin~~r~~s~~:1i~ invesi~ .. 8.0 8.6 8.2 4.9 2.9 2.5 must recognize that upgrading of the edu­ men! ...... 7.7 8.0 7.9 6.2 5.6 4.2 cation system will be costly. The higher edu­ Net foreign invest· ADJOURNMENT - 1.4 - 2.8 -1.7 cation system is the envy of the rest of the men! ...... 3 .7 .3 Mr. HOAGLAND. Mr. Speaker, I world; but one reason is that it is extremely AODENDA move that the House do now adjourn. well financed. Primary and secondary edu­ Capital consumption allow- ances 3 ...... 9.0 8.4 10.0 11.8 11.0 10.8 The motion was agreed to; accord­ cation would perform much better if it had Personal saving rate• ...... 7.2 6.9 7.8 7.8 4.8 5.1 ingly (at 1 o'clock and 26 minutes the kind of resources devoted to the college 1 Net saving and investment equal the gross flow minus capital con - p.m.), the House adjourned until to­ and university system. sumption allowances. Net national product equals gross national product Furthermore, even if a means of improving minus capital consumption allowances. The sum of the savings components morrow, Tuesday, March 17, 1992, at 12 the educational system could be imple- differs from the total by the amount of the statistical discrepancy. noon. March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5761 EXPENDITURE REPORTS the foreign currencies used by them for thorized by the Speaker of the U.S. CONERNING OFFICIAL FOREIGN official foreign travel during the fourth House of Representatives, pursuant to TRAVEL quarter of 1991, and various amend­ Public Law 95-354, are as follows: Report of a committee of the U.S. ments to the third and fo:urth quarter House of Representatives concerning 1991 consolidated report of travel au- REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON ENERGY AND COMMERCE, U.S. HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN OCT. 1 AND DEC. 31, 1991

Date Per diem• Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Na me of Member or employee Country Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Arrival Departure rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rency2 rency 2 rency 2 rency 2

David Finnegan ...... 12/15 12/21 Switzerland ...... 1,326.00 3,275.70 - 4,601.70 Janina Jaruzelski ...... 12/15 12120 Switzerland ...... 1,105.00 2,548.00 3,653.00 Jessica lawrty ...... 12/16 12/20 Switzerland ...... 884.00 2,551.90 3,435.90 John Sheik ...... 12115 12121 Switzerland ...... 1,326.00 2,548.00 3,874.00 John Orlando ...... 1112 11n France ...... 1,012.00 3,217.80 4,229.80 Scott Cooper ...... 11/2 11/8 France ...... 1,265.00 3,217.80 4,482.80 Douglas Bennett ...... 11/2 11/8 France ...... 1,265.00 3,217.80 4,482 .80 Stephen F. Sims ...... 11/15 11/20 Hong Kong ...... 1,260.00 1,260.00 11/20 11/20 Indonesia ...... 458.00 458.00 11/22 11123 Singapore ...... 3,371.00 3,371.00 John Sheik ...... 11115 11/20 Hong Kong ...... 1,260.00 1,260.00 11/20 11122 Indonesia ...... 458.00 458.00 11122 11/23 Singapore ...... 3,371.00 3,371.00 Alan Roth ...... 9128 9/30 Poland ...... 950.00 950.00 9/30 10/3 U.S.S.R ...... 3,292.20 3,292.20 David Keaney ...... 1218 12/13 Bulgaria ...... 908.00 3,657.50 227.00 4,792.50 Hon. Henry Waiman ...... Israel ...... 440.00 4,155.00 4,595.00

Committee total ...... 13,917.00 38.423.70 227.00 52,567.70 •Per diem constitutes lodging and meals. Z If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. JOHN D. DINGELl, Chairman.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, DELEGATION TO JORDAN, SYRIA, EGYPT, ISRAEL, MALAYSIA, AND HONG KONG, U.S. HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN AUG. 6 AND SEPT. 2, 1991 -

Date Per diem• Transportation other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Arrival Departure rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rencyz rencyz rency 2 rency2

Hon. Jim McDermott ...... 816 8/11 Jordan ...... 744.00 3,187.00 3,931.00 8/11 8/12 Syria ...... 202.00 202.00 8/12 8/13 Jordan ...... 186.00 186.00 8/14 8/16 Iraq ...... 8/16 8/18 Jordan ...... 372.00 372.00 8/18 8/20 Egypt ...... 329.34 329.34 8120 8121 Jordan ...... , ...... 8/21 8/24 Israel ...... 660.00 660.00 8/24 8/24 Germany ...... 7,793.00 7,793.00 8/25 9/1 Malaysia ...... 912 Germany ...... Cha~es M. Williams ...... 8/6 8/11 Jordan ...... 744.00 3,318.00 4,062.00 8/11 8/12 Syria ...... 202.00 202.00 8/12 8113 Jordan ...... 186.00 186.00 8/14 8/16 Iraq ...... 8/16 8/18 Jordan ...... 465.00 465.00 8/18 8120 Egypt ...... 329.34 329.34 8120 8121 Jordan ...... 8121 8124 Israel ...... 660.00 660.00 8/24 8124 Germany ...... 5,930.00 5,930.00 8125 8/27 Malaysia ...... 8127 8/29 Hong Kong ......

Committee total ...... 5,079.68 20,228.00 25,307.68 1 Per diem constitutes lodging and meals. 2If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. JIM McDERMOTT, Feb. 28, 1992.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, DELEGATION TO JAPAN, U.S. HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN DEC. 6 AND DEC. 11, 1991

Date Per diem• Transportation Other purposes Total

Name of Member or employee Country U.S. dollar U.S. dollar U.S. dollar U.S. dollar Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Foreign cur- equivalent Arrival Departure rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rency or U.S. cur- rency 2 rency 2 rency 2 rency 2

Hon. Jim McDermott ...... 12/6 1219 Japan ...... 900.00 4,405.00 5,305.00 12/10 12111 Australia ...... 50.00 50.00 Werner Brandt ...... '...... 12n 12110 Japan ...... 900.00 5,846.00 6,746.00 Committee total ...... 1,850.00 10,251.00 12,101.00 I Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended . JIM McDERMOTT, Feb. 28, 1992. 5762 CONGRESSIONAL RECORD-HOUSE March 16, 1992 EXECUTIVE COMMUNICATIONS, 3103. A letter from the Assistant Secretary H.R. 4473. A bill to amend the Agricultural ETC. of the Interior for Indian Affairs, transmit­ Trade Act of 1978 to make modifications in ting materials on behalf of the Citizens Bank the Market Promotion Program; to the Com­ Under clause 2 of rule XXIV, execu­ of Potawatomi Indians of Oklahoma, pursu­ mittee on Agriculture. tive communications were taken from ant to 25 U.S.C. 1402(a) 1404; to the Commit­ By Mr. RICHARDSON (for himself and the Speaker's table and referred as fol­ tee on Interior and Insular Affairs. Mr. SYNAR): lows: 3104. A letter from the Assistant Secretary H.R. 4474. A bill to provide for the energy 3092. A letter from the Assistant Secretary of the Army (Civil Works), transmitting a efficiency of Federal buildings through en­ for Financial Management, Department of letter from the Chief of Engineers, Depart­ ergy performance contracts and for other the Army, transmitting a report on the ment of the Army, dated September 7, 1983, purposes; to the Committee on Energy and value of property, supplies, and commodities and a supplement letter dated September 23, Commerce. provided by the Berlin magistrate for the 1985, submitting a report together with ac­ By Mr. WOLF: quarter October 1, 1991 through December 31 , companying papers and illustrations (H. Doc. H.R. 4475. A bill to increase the penalties 1991, pursuant to Public Law 101- 165, section No. 102-203); to the Committee of Public applicable for transporting or importing 9008 (103 Stat. 1130); to the Committee on Ap­ Works and Transportation and ordered to be goods made by convicts or prisoners, and for propriations. printed. failure to mark packages of goods made by 3093. A letter from the Secretary of Edu­ 3105. A letter from the Assistant Secretary convicts or prisoners, and for other purposes; cation, transmitting Final Regulations-Li­ for Conservation and Renewable Energy, De­ to the Committee on the Judiciary. brary Services and Construction Act State­ partment of Energy, transmitting notifica­ By Mr. SOLOMON (for himself and Mr. Administered Program, pursuant to 20 U.S.C. tion that the report for the Electric and Hy­ RICHARDSON): 1232(d)(1); to the Committee on Education brid Vehicles Program for fiscal year 1991 H. Con. Res. 294. Concurrent resolution rel­ and Labor. will be submitted in April, pursuant to 15 ative to the role of the North Atlantic Trea­ 3094. A letter from the Secretary of Edu­ U.S.C. 2506(b)(4); to the Committee on ty Organization; to the Committee on For­ cation, transmitting Final Regulations­ Science, Space, and Technology. eign Affairs. Javits Gifted and Talented Students Edu­ 3106. A letter from the Director, Office of cation Grant Program, pursuant to 20 U.S.C. Management and Budget, transmitting the 1232(d)(l); to the Committee on Education 13th report on U.S. costs in the Persian Gulf MEMORIALS conflict and foreign contributions to offset and Labor. Under clause 4 of rule XXII, memori­ 3095. A letter from the Secretary of Edu­ such costs, pursuant to PubHc law 102-25, cation, transmitting Final Regulations-­ section 401 (105 Stat. 99); jointly, to the Com­ als were presented and referred as fol­ Training Program for Special Programs mittee on Foreign Affairs and Armed Serv­ lows: Staff and Leadership Personnel; Talent ices. 344. By the SPEAKER: Memorial of the Search, Educational Opportunity Centers. General Assembly of the State of Illinois, Upward Bound, and Student Support Serv­ relative to Federal Government revenue ices Programs; and Student Assistance Gen­ REPORTS OF COMMITTEES ON PUB­ sharing programs; to the Committee on Gov­ eral Provisions, pursuant to 20 U.S.C. LIC BILLS AND RESOLUTIONS ernment Operations. 1232(d)(l); to the Committee on Education Under clause 2 of rule XIII, reports of 345. Also, memorial of the Senate of the and Labor. State of Alaska, relative to the restoration 3096. A letter from the Secretary of En­ committees were delivered to the Clerk and augmentation of Federal funding for the ergy, transmitting the Department's 15th re­ for printing and reference to the proper Alaska Volcano Observatory; to the Commit­ port, "Comprehensive Program and Plan for calendar, as follows: tee on Interior and Insular Affairs. Federal Energy Education, Extension and In­ Mr. TORRES: Committee of Conference. formation Activities," pursuant to 42 U.S.C. Conference report on H.R. 3337 (Rept. 102-- 7373(2); to the Committee on Energy and 454). Ordered to be printed. ADDITIONAL SPONSORS Commerce. Mr. DINGELL: Committee on Energy and Under clause 4 of rule XXII, sponsors 3097. A letter from the Assistant Legal Ad­ Commerce. Report on the Activity of the viser for Treaty Affairs, Department of Committee on Energy and Commerce for the were added to public bills and resolu­ State, transmitting copies of international 102d Congress, 1st session (Rept. 102-455). Re­ tions as follows: agreements, other than treaties, entered into ferred to the Committee of the Whole House H.R. 127: Ms. OAKAR, Mr. FEIGHAN, Mr. by the United States, pursuant to 1 U.S.C. on the State of the Union. ALLEN, Mr. TAYLOR of North Carolina, and 112b(a); to the Committee on Foreign Affairs. Mr. HOBSON°. 3098. A letter from the Deputy Assistant H.R. 1206: Mr. SKEEN and Mr. RICHARDSON. Secretary for Foreign Buildings, Department PUBLIC BILLS AND RESOLUTIONS H.R. 1306: Mr. RICHARDSON. of State, transmitting notification of the Under clause 5 of rule X and clause 4 H.R. 1310: Mrs. JOHNSON of Connecticut. award of a minority contract pursuant to of rule XXII, public bills and resolu­ H.R. 1312: Mr. CAMPBELL of California. section 8(a) of the Small Business Act; to the H.R. 1726: Mr. JACOBS. Committee on Foreign Affairs. tions were introduced and severally re­ H.R. 2089: Mrs. SCHROEDER. 3099 .. A letter from the President, Overseas ferred as follows: H.R. 2385: Mr. PASTOR and Mr. MYERS of In­ Private Investment Corporation, transmit­ By Mr. FORD of Michigan (for himself, diana. ting the annual report of the Corporation's Mr. GoODLING, Mr. GAYDOS, Mr. COLE­ H.R. 2580: Mr. BERMAN, Mr. LANTOS, and activities and operations during fiscal year MAN of Missouri, Mr. CLAY, Mr. Mr. KOSTMAYER. 1991, pursuant to 22 U.S.C. 2200 and 2197(c)(2); PETRI, Mr. MILLER of California, Mr. H.R. 2884: Mr. SOLOMON. to the Committee on Foreign Affairs. GUNDERSON, Mr. MURPHY, Mr. H.R. 3026: Mr. CRANE. 3100. A letter from the Assistant Adminis­ BARRETT, Mr. KILDEE, Mr. MARTINEZ, H.R. 3138: Mr. MACHTLEY. t rator for Legislative Affairs, U .S. Agency Mr . P ERKINS, Mr. SAWYER, Mr. PAYNE H.R. 3281: Mr. SANTORUM. for International Development , tra nsmitt ing of New Jersey, Mrs. LOWEY of New H.R . 3405: Mr. MACHTLEY. a summar y of two activit ies pr oposed for York, Mrs. UNSOELD, Mrs. MINK, Mr. H.R . 3472: Mr. JONTZ. funding in P er u during fiscal year 1992 by ANDREWS of New Jersey, Mr. JEFFER­ H.R. 3810: Mr. MATSUI a nd Mr. FROST. AID's Latin America and Caribbean Bureau , SON, Mr. REED, Mr. OLVER, and Mr. DE H.R. 4061: Mr. MURTHA and Mr. HUGHES. pursuant t o 22 U.S.C. 2151u(e); to the Com­ LUGO): H.R. 4083: Ms. HORN, Mr. TRAXLER, Mr. mitt ee on F oreign Affairs. H.R. 4471. A bill to amend and extend the STALLINGS, Mr. MACHTLEY, and Mr. LAROCCO. 3101. A letter from the Director of Oper­ Higher Education Act of 1965; to the Com­ H.R. 4206: Mr. JOHNSTON of Florida, Mr. ations and Finance, American Battle Monu­ mittee on Education and Labor. VENTO, and Mr. JONTZ. m ents Commission, transmitting a report of By Mr. CAMPBELL of California: H.R. 4212: Mr. FROST and Mr. BUSTAMANTE. activities under the Freedom of Information H.R. 4472. A bill to amend the Public H.R. 4214: Mr. WHEAT and Mr. MURPHY. Act for calendar year 1991, pursuant to 5 Health Service Act to facilitate the entering H.J. Res. 430: Mr. LENT, Mr. NATCHER, Mr. U.S.C. 552(d); to the Committee on Govern­ into of cooperative agreements between hos­ VANDER JAGT, Mr. FROST, Mr. CAMP, Ms. ment Operations. pitals for the purpose of enabling such hos­ 0AKAR, Mr. HUGHES, Mr. BONIOR, Mr. HARRIS, 3102. A letter from the Director, Office of pitals to share expensive medical or high Mr. SABO, MR. HERTEL, Mr. HUBBARD, Mrs. Personnel Management, transmitting a re­ technology equipment or services, and for UNSOELD, Mr. SKEEN, and Mr. WOLPE. port of activities under the Freedom of Infor­ other purposes; to the Committee on Energy H. Res. 350: Mr. MARTINEZ, Mr. OWENS of mation Act for calendar year 1991, pursuant and Commerce. New York, Mr. ANDREWS of Maine, Mr. t o 5 U.S.C. 552(d); to the Committee on Gov­ By Mr. KOSTMAYER (for himself, Mr. BLACKWELL, Mr. ANDREWS of New Jersey, Mr. ernmen t Oper ations. MURTHA, and Ms. HORN): SWETT, and Mr. PERKINS. March 16, 1992 CONGRESSIONAL RECORD-HOUSE 5763 H. Res. 359: Mr. KENNEDY. PETITIONS, ETC. 145. The SPEAKER presented a petition of H. Res. 3'17: Mr. SHAYS. the Independent-Republican Caucus of the Under clause 1 of rule XX.II, petitions Minnesota House of Representatives, relative and papers were laid on the Clerk's to support for the President's economic plan; desk and referred as follows: which was referred to the Committee on Ways and Means.