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6778 EXTENSIONS OF REMARKS April 8, 1986 EXTENSIONS OF REMARKS THE POLISH AMERICAN STRING preaching 15 to 17 percent of their gross na­ ducing any change in the public's percep­ BAND, CHAMPIONS AGAIN tional product, dwarfing our present 6 percent tion of what was happening to defense GNP commitment. Even if the spending num­ spending. HON. ROBERT A. BORSKI bers are in dispute, there is no disputing the Absorbed, as they must be, in public rela­ figures that show the outstrip­ tions and political maneuvering, the partici­ OF PENNSYLVANIA pants in the Washington power game often ping production in every signifi­ IN THE HOUSE OF REPRESENTATIVES lose sight of the real issues. If this modest cant category of military hardware since 1974. military buildup becomes a casualty of hy­ Tuesday, April8, 1986 By comparison, the defense budget debate is perbole and misperception and as a conse­ Mr. BORSKI. Mr. Speaker, I rise to honor a a mere sideshow. quence is further cut back, the U.S. is likely great fraternal and musical group from my The article follows: to remain the world's second most powerful hometown, the Polish American String Band. [From Business Week, Apr. 14, 19861 nation. If , with his electoral The Polish American String Band recently THE PENTAGON BUDGET: FACT VERSUS FICTION victories, cannot succeed with a military buildup, no one is likely to succeed. The earned its 10 prestigious first prize in Philadel­ Soviet Union is not blind to the implica­ phia's famous annual Mummers' Day Parade. The Reagan Administration and its critics tions. The prospect of being the dominant The Polish American String Band has a long are at odds on many issues, but on one criti­ power in the international arena is scarcely tradition of excellence among Philadelphia's cal matter they agree: There has been a an incentive for the Soviets to restrain their great Mummers bands. It was founded in massive buildup in the nation's defense. own ongoing military buildup. 1933 by Mr. Joseph Jankowski and the Polish Critics on the left bemoan this buildup as It is dangerous for the Reagan Adminis­ business community in Port Richmond. For a resurrection of the arms race, while the tration and its critics to project the image of Administration claims that the buildup is a buildup that is greater than its substance. the past 47 years, it has participated in the forcing the Soviets back to the bargaining traditional New Year's Day Mummers' Parade, On the one hand, it misleads the American table for arms-reduction talks. Even the public and U.S. allies about our relative giving an opportunity for musical excellence conservative chairman of the Senate Budget strength. On the other hand, it tells the and community involvement to hundreds of Committee, Pete V. Domenici

e This "bullet.. symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. April 8, 1986 EXTENSIONS OF REMARKS 6779 truly enriched our community, State, and Stanley Blazowski ...... 1948-49 worthwhile projects which had a high approval Nation. Fabian Izsa, Jr...... 1949-50 factor within the community. Mr. Speaker, I know that you and our col­ Joseph P. Lazur ...... 1950-51 However, as TV A began to move technical­ leagues here in the Congress will want to join Stanley Benedict...... 1951-52 ly into the nuclear age, some of the traditions Edward Serafin ...... 1952-53 with me in extending our heartiest congratula­ Thaddeus Tecza ...... 1953-54 began to present problems. Management poli­ tions and best of wishes to Peter Kalfe and Frank Duplak ...... 1954- 55 cies which had worked well under a different share the pride of his wife Natalie; their chil­ Edward Lazur ...... 1955-56 set of circumstances began to become prob­ dren: Carol, John, Mark Lynd, and Maryann William Gonsisko ...... 1956-57 lems for the TV A and thus for the people of Coral; and granddaughter, Michele on this Andrew Tylawsky ...... 1957-58 the region who pay TVA's bills. 1 milestone of achievement in their family en­ Bruno Czerniak ...... 1958-59 For example, TV A's management adopted a deavors. Stanley Pych ...... 1959-60 1 policy that limited candidates for reactor oper­ Mr. Speaker, the Rosoi-Dul Memorial Post Stanley Tomczyk ...... 1960-61 1 ator or senior reactor operator to non-degreed No. 359, which was organized in the fall of Bruno R. Stolarz ...... 1961-62 1 persons. Another policy excluded nuclear 1945, is one of our Nation's most prestigious Alexander Bednarz ...... 1962-63 John Yaroslawski ...... 1963-64 onsite engineers from consideration as reactor affiliates of the American Legion. We are all William Fitzgerald...... 1964-65 operators or senior reactor operators. familiar with the noble goals and objectives of Stanley Madey ...... 1965-66 As the program developed, the need for nu­ 1 the 2.6 million-member organization of the John Galka ...... 1966-67 1 clear management people at higher levels American Legion. These military service veter­ Walter Chmielowiec ...... 1967-68 1 grew. Yet the people in TVA's management ans, working through 16,000 community level Henry Lesnick ...... 1968-69 posts, dedicate themselves to God and coun­ Edward F. Sadlowski1 ...... 1969-72 tract had not necessarily had in-depth nuclear try and traditional American values; a strong John Yaroslawski ...... 1972-73 experience, especially at the operating level. national security; adequate and compassion­ Edward Byra...... 1973-74 Partially as a result of TV A's management ate care for veterans, their widows and or­ Edward Wieczerzak 1 ...... 1975 policies which failed to put in place an effec­ phans; community service; and the whole­ Stanley Turecki ...... 1975-76 tive management training program to develop Michael Pohrischak ...... 1976-77 an adequate number of nuclear managers, some development of our Nation's youth. Joseph Ruda ...... 1977-78 Peter Kalfe has, by his example and lifetime Anthony Nead ...... 1978-79 problems began to surface for the agency. of dedication to these same true American Martin J. Fucio ...... 1979-80 The Nuclear Regulatory Commission criticized ideals, personified exemplary leadership in his Martin Kobylarz ...... 1980-81 TV A for promoting people to middle- and responsible service to our people. Stanley Procko ...... 1981-82 upper-level management positions in the nu­ Mr. Speaker, Pete was raised in Passaic, NJ Joseph Szewczyk...... 1982-83 clear program without regard for the nuclear and attended local schools in Passaic. He Fred Gnapinski ...... 1983-84 experience of these people. In July 1985, served our people and our Nation with distinc­ Peter Kalfe ...... 1984-85 before the nuclear shutdown, NRC cited TV A 1 Deceased. tion during World War II as a gunner in the for a total of 10 management policies, primari­ Mr. Speaker, it is indeed appropriate that Navy with the armed guard in the South Pacif­ ly relating to personnel, as possible factors in we reflect on the deeds and achievements of ic from 1944 to 1946. TV A's nuclear difficulties. our people who have contributed to the quality In his career pursuits he has served our Earlier, in response to this developing per­ of our way of life here in America and I am .community, State and Nation as a distin­ sonnel problem, TV A management attempted guished public safety officer. He is a detective pleased to call your attention to Pete's lifetime to alter compensation practices at the agency. with the Passaic Police Force and has just an­ of outstanding public service. We do indeed These efforts were poorly developed from the nounced his retirement from the department salute a most distinguished public safety offi­ standpoint of justification in face of tradition where he has served for the past 35 years. cer, good friend, and great American-the im­ Throughout his lifetime Detective Kalfe has mediate past commander of Rosoi-Dul Memo­ and statutory restraint. The attempts met with· forged ahead with dedication, devotion, and rial Post No. 359 of the American Legion-the loud and widespread opposition from some sincerity of purpose in combating crime and Honorable Peter Kalfe of Passaic, NJ. employees and many ratepayers. protecting the life of our people. We applaud As with any organization, TV A employees his knowledge, training, hard work, and per­ PROPOSED TVA CHANGES are the agency's greatest asset. Without the sonal commitment that has enabled him to WOULD IMPROVE EMPLOYEE dedication, hard work, understanding, and achieve the fullest confidence and strongest MORALE AND EFFICIENCY support of the employees, any organization support of the people of our community. He can fail. In a highly technical operation with has always applied the most sophisticated safety concerns, such as the nuclear program, and advanced techniques of his profession. HON. RONNIE G. FLIPPO the prospect for failure is magnified without During the past three and a half decades he OF ALABAMA full and ardent employee support. has received many citations for his meritorious IN THE HOUSE OF REPRESENTATIVES The legislaton allows the new board to take service as a law enforcement officer and we Tuesday, AprilS, 1986 a fresh look at the entire matter of employee are especially proud of his most recent highly Mr. FLIPPO. Mr. Speaker, previously, I have relations, compensation policies, and similar coveted award-the "Cop of the Year" which discussed some of the problems at the Ten­ issues which bear on the success of the cor­ he received from the Passaic Optimists. nessee Valley Authority and a proposed poration. If found appropriate after public Mr. Speaker, Pete Kalfe has been a change in the management structure of the hearings and review, the legislation also member of Rosoi-Dul Memorial Post No. 359 agnecy. The proposal also includes changes allows the new board to establish a fund each for the past 18 years and has served on vari­ designed to improve TV A employee morale year to recognize unusually meritorious acts ous committees before attaining the high and efficiency which I want to discuss. which benefit the corporation. This program office of public trust as commander of this es­ COMPENSATION AND EMPLOYEE POLICIES might be patterned after other Federal em­ teemed veterans organization. At this point in ployee reward programs. 1 our historic journal of Congress may I com­ Compensation of a job may include regular mend Peter Kalfe to you along with all of the salary or wages, other monetary renumeration, such as bonuses and awards; psychic satis­ past commanders of Rosoi-Dul Memorial Post 1 At least two different types of Federal award No. 359 who throughout the past 41 years faction for a job well done, peer approval and programs are in place. Under the Incentive Awards Program, an employee who proposes a have served their membership and the people admiration; and perquisites such as office size, furnishings, dining rooms, automobiles, suggestion, develops an invention, or makes a con­ of our community with their leadership en­ tribution beyond the scope of the job, may receive deavors in veterans affairs, as follows: parking spaces, insurance, and other advan­ up to $25,000. Top managers, in the Senior Execu­ tages not available to most other employees. tive Service, are eligible for lump sum payments for Rosol-Dul Memorial Post No. 359 American performance up to 20 percent of basic pay. Addi­ Legion Passaic, NJ past commanders Traditionally, the TVA has eschewed individ­ ual employee bonuses, perquisites, and recog­ tional awards in the SES are llmlted to 5 percent of The Honorable: executives designated as meritorious <$10,000 lump BenJamin Kwiatkowski ...... 1946-47 nition in favor of recognition of team effort sum payment> and to 1 percent designated as dis­ Emil Olszowy1 ...... 1947-48 and the psychic rewards of completion of tinguished ($20,000 lump sum payment>. 6780 EXTENSIONS OF REMARKS April 8, 1986 In addition, the board each year would have legislation ($1 0,000) is somewhat less than responsibility of the chief executive officer and authority to authorize retention or recruitment the stipend for similar business corporation. the professionals employed to assist the CEO. supplements for positions where the pay was Korn/Ferry indicates the average annual fee Under the proposed new structure, it seems found to be higher in other Government posi­ for the 1,000 largest U.S. corporations was appropriate to have the inspector general as tions, such as in the Senior Executive posi­ $11,700 per director in 1983. an arm of the board because the monitoring tions, and in certain other engineering, medi­ Because of the public service nature of the and review responsibilities of the board would cal or technical positions or in cases where no TVA, it seems inappropriate to provide com­ be separated from the operational responsibil­ similar positions are found within the Federal plete parity with stipends provided to those ities which are vested in the chief executive Government. serving on boards of private business corpora­ officer. The payment to an employee during any tions. Thus, the new board proposal calls for the fiscal year for wages, salary, supplements, bo­ The directors' fees for each day of actual nuses, or other compensation could not meetings would be at the daily rate for level V IG to be appointed by the restructured board. exceed the rate payable for level I of the Ex­ of the Executive Schedule (currently about IMPROVED IG FUNCTION ecutive Schedule (currently $86,200). The $264 per day). This compares to the average This section of the bill would establish an payment for basic wages or salary could not per meeting fee provided by business corpora­ office of the inspector general in the TV A. Ad­ exceed level V (currently $68, 700). tions of $717 in 1983.3 The average total ditionally, it would strengthen audit and inves­ COST FACTORS INVOLVED IN IMPROVED POLICY AND compensation for directors of business corpo­ tigative activities in TV A by requiring that ex­ MANAGEMENT PROPOSALS rations in 1983 was $18,090. This average is isting audit and investigative offices be con­ The objective of the restructuring is to pro­ a reflection of the relatively few days the solidated. The IG would report directly to the vide the TVA and its customers with a man­ boards of established corporations meet an­ board and be given the same duties and au­ nually. agement mechanism to enable the agency to thorities as statutorily established inspectors Travel expenses would be reimbursed as be more efficient, responsive, and accounta­ general. they are for other Government employees. ble. An improved management system, even if Nobody likes to have their actions reviewed. THE TVA INSPECTOR GENERAL BACKGROUND the managers are better rewarded, should The need for offices of inspector general, Several Members from the TVA region have produce savings through more efficient oper­ however, is well established, and Congress ations. introduced legislation (H.R. 3464, 99th Con­ has created statutory IG's in 17 departments The legislation recognizes that an outstand­ gress) to bring the TV A under the provisions and agencies. Statutory offices of inspector ing CEO for an organization such as TV A can of the Inspector General Act of 1978, with a general have proven highly successful. Over earn and should be paid more than current statutory JG appointed by the President and Federal salary ceilings. The legislation relies confirmed by the Senate. The bill would also the last 2¥2 years, their work has resulted in on the good judgment of board members vest the TV A's IG with certain electric rate about $15 billion annually in monetary benefits living among the ratepayers to take into ac­ review jurisdiction. to the government, including recoveries from count reasonable peformance objectives, re­ Democrat JACK BROOKS has introduced leg­ investigative activities and savings resulting gional variations, and the public nature of TVA islation (H.R. 3077, 99th Congress) to provide from management improvements. in establishing the compensation package for all Federal entities, such as TV A, with a By providing, through this legislation, the such a person. 2 single, consolidated internal audit unit and TVA's JG with the authority granted to Presi­ The costs of the changes in the board itself audit unit director with the powers and author­ dentially appointed, statutory IG's, the role of are more easily identified. The salaries of the ity of the statutory IG's designated for certain the TVA's IG function will be enhanced and three-person full-time board total $218,200 a departments. H.R. 3077 audit unit directors strengthened. By assuring that various audit year at present. Travel and staff support costs would be appointed by the agency head and and investigative functions are placed under are in addition. would not require Senate confirmation. the TVA's IG, coordination and efficiency. in After the initial organizational phase, a re­ The TVA board hired, in late January 1986, the discharge of the IG function are more structured TVA board would probably average a person designated as inspector general of likely. Should the TV A board remove the IG, 30 or 40 meeting days per year. During years TVA. Whether all the internal audit functions such action would have to be reported to the when members averaged 40 meeting days will be effectively transferred to this new office Congress. each, the compensation for the restructured remains to be seen. In any event, the TV A­ The earlier legislation, H.R. 3464, also pro­ board would be a total of $167,859. designated JG is unlikely to be able to function vided the proposed TVA IG with certain rate If the restructured eight-person part-time as a statutory IG because TVA lacks the abili­ review responsibilities. By restructuring the board required use of all authorized meeting ty to confer on the office all of the authority board's responsibilities, as the new legislation days, the total compensation would be and jurisdiction provided by the Inspector does, by giving the board monitoring, review $212,200 a year. If only 50 percent of the au­ General Act of 1978 and its amendments. and oversight duties divorced from responsi­ thorized days were required, the total com­ H.R. 3464 for a TVA inspector general was bilities for day-to-day operations, the board pensation would be $146,000. based on the TV A management structure as it itself should be independent enough to give Variables such as distance from meeting exists; that is, the board is responsible for es­ more confidence to the rate review function. places and number of days of meeting would tablishing policy and then dons another hat to influence the travel cost. To the extent that attempt to manage the agency. The present the board functions are policy-oriented rather situation, with the board appointing the JG, STATEMENT OF HON. HELEN than for day-to-day management, total staff has been compared to having the board in­ DELICH BENTLEY ON LAUNCH­ support attributable to the board should be vestigate itself to see how well the board is ING OF THE "FORT McHENRY" less than presently expended. carrying out its policies and the laws and reg­ Current board staff cost attributable to day­ ulations the board is attempting to administer. to-day management and operations would be Should the board err in either of its functional HON. MARCY KAPTUR attributed to the CEO under the proposed ar­ roles, the appeal is to the board. OF OHIO rangements. A completely different set of circumstances From the standpoint of the individual board would prevail under the TVA board restructur­ IN THE HOUSE OF REPRESENTATIVES members, the annual stipend provided by the ing proposal. Under the proposal, the board's Tuesday, AprilS, 1986 function is to establish policy, monitor the ad­ Ms. KAPTUR. Mr. Speaker, I would like to ministration and execution of the policy, and 1 Although the TVA lacks some of the criteria take this opportunity to recommend to our col­ frequently used in eatabllahlng compensation pack­ regulate electric rates. The management, ad­ aeea for CEO's in private corporations , TVA should BENTLEY, on the occasion of the launching of have other annual and long-term management ob­ a Data for director compensation such as that pre­ Jectives which could be used as a basis for evaluat­ sented by Kom/Ferry may renect the large the Fort McHenry. Her's is an intelligent and ing a CEO's performance and ellglbUlty for a par­ number of maJor corporations clustered ln the thought-provoking piece on the state of our ticular level of bonus payment. high-cost major metropolitan areas of the country. defense industrial base. April 8, 1986 EXTENSIONS OF REMARKS 6781 STATEMENT OF HoN. HELEN DELICH BENTLEY Because I believe this so strongly, I have tourist industry which grew in proportion to ON THE LAUNCHING OF THE "FORT MCHENRY" been a major supporter of the President's the expanding affluence of well paid. well The launching of a ship is a happy event effort to restore the Defense budget after trained workers. for all concerned . . . a happy event as are the deep cuts of the Carter years. It is criti­ This total picture has been changed! all births, a time of excitement and hope! In cal that we always be ready in a world A great part of that manufacturing base ancient times, a new vessel was christened where the Russians view civil unrest in a has been lost. Because of the high levels of by a sacrifice to the Gods . . . human or foreign nation as an opportunity to extend imports of all products, demand for raw ma­ animal . . . a blessing against the rigors and Soviet ideology and interests far beyond the terial& and onshore energy has gone down dangers of life at sea. territory of continental Russia. as the plants have shut their doors. Every To all nations throughout history, the In truth, since the all out Defense efforts industry involved in the handling of raw ability to travel in search of trade has been of the 1940's, we have not been able to material to finished product has been se­ the hope for the future of their people. disarm. The Second World War went from verely impacted and we are left with an in­ And. in times of threat to that future, hope hot to cold. Our Defense appropriations crease in GNP barely above two percent­ lay in the ability to withstand invasion from ebbed and waned as did the support of the half of that accounted for by Defense ex­ those who would pillage and destroy. Histo­ American taxpayer for an unseen war being penditures. ry, joined with necessity, has built the great waged for minds and hearts . . . for terri­ Oil refineries are closed-cheaper to buy Naval and Merchant fleets of the world. tory, half the world away. refined oil abroad and ship it; 8 out of 10 This morning we are privileged to be invit­ But the Russian commitment to domina­ nuts, bolts and large screws are imported as ed to participate in this historic panorama tion of the West has not waned one whit. are 60% ·of all N/C turning Machine Tools. celebrated by the Psalmist; Forty years later, Russian civilians are still 80% of all strategic ball bearings under 30 suffering shortages of housing and con­ millimeters come from abroad. Steel import "They that go down to the sea in ships; sumer goods in order to feed the Soviet mili­ penetration reached 30% in one month of That do business in great waters; These see tary machine. The Russians see many guns 1985, and every month-on average-25,000 the works of the Lord, and His won­ on May Day, but they rarely see butter on jobs are lost in manufacturing jobs in Amer­ ders in the deep." their tables. ica. As a Marylander, I am so especially proud We have been blessed over these years, as We are being asked to accept the proposi­ to be asked here to christen the USS Fort the leading industrialized nation of the tion that only one sector of that widely di­ McHenry. The defeat of the British at Fort world, to be able to have produced both. versed economy of the last forty years will McHenry in Baltimore Harbor during Sep­ Though the price for Defense has been support America into the year two thou­ tember, 1814, signaled the end of the War of heavy-the expansion and diversity of the sand. Services. 1812 and forever ended any threat of future American economy since the 1940's has gen­ I strongly disagree. English intervention in the affairs of our erated tax revenues to accommodate not Defense is much more than capital ships young country. only the needs of both our civilian and mili­ of the Navy! Missiles which can be launched It was that battle which inspired Francis tary sectors-but, we have also assumed the once . . . at great expense . . . never to be Scott Key to compose the Star Spangled larger share of the Defense costs for the recovered! State-of-the-art High Technology Banner. Many people are unaware that Key rest of the free world. weapons which freeze up when their com­ was aboard one of the British ships during We may be fast approaching the end of puters are exposed to blowing sand or in­ the battle. He had been sent as an emissary the era-Pax Americana. Basic changes in tense jungle humidity. from the government seeking the freedom the economic structure of the country over Defense demands an industrial base-on of an American doctor who had been cap­ the last decade are bound to impact on our shore-to build the weapons, to repair the tured and taken hostage on board one of Defense posture-in several areas-in a very weapons, to ship the weapons out! the British frigates. few years. Defense demands clothing-uniforms and Not only did Maryland give the nation its To illustrate the depth of this change in boots for the men and women who fight­ National Anthem at Fort McHenry, we gave our nation's economic fabric, I will recall to vehicles-trucks, tanks, ambulances, weap­ the country a major victory. The men who you what manufacturing in this country ons carriers, radios, watches, televisions, fought at Fort McHenry and North Point meant-a few short years ago. computers, typewriters, binoculars. Every were members of the Maryland Militia, not I grew up in the mining country of article demanded by the ciVilian sector with federal government troops. They were Nevada-my father was a copper miner. The a vengeance. provisioned and supported by the citizens of American West was a place of coal and "Fortress America" which must go seven Baltimore. copper mines, iron and silver and gold thousand miles away for ball bearings and Are we scrappy in Maryland? You bet we mines. The Northwest cut timber. Texas fasteners, radios and watches and a myriad are! In the 1812 War, our ships' captains was wild-cat oil wells and the gas industry of other parts needed for an active war ma­ were so good at capturing British ships that was digging lines to the East. The South chine . . . has already been breached. the London Press called Baltimore a "nest and North Central States and New England The rising demand for strategic Defense of pirates." were busy manufacturing centers producing imports comes at the same time that our Isn't it fitting that the USS Fort McHenry products for the American market and the Merchant Marine has reached a historic low is an LSD-Whidbey Island Class? A scrap­ world. point. U.S. Navy ships ... for the first time PY ship used as a durable dock? A ship Everywhere the railroad went taking in the history of the country ... outnum­ which can be loaded at sea and carry virtu­ these raw resources to smelters and fur­ ber merchant ships. ally any type of cargo, including troops? naces. The ports and the rivers were filed It is not outrageous to suggest that the The LSD has a valiant history which with traffic moving to and from refineries Merchant Marine Act of 1936-which pro­ started in World War II. And to many of my . . . always moving the energy to the source vided for the rebuilding of our Merchant generation, the "landing barge," as it was of the finishing process of the raw material. fleet-was one of two major factors in win­ known then, calls to mind picture after pic­ Raw material in, finished product out. ning the Second World War. ture of helmeted, young Americans pouring Trains and trucks, boats and barges picked The other factor was our industrial base onto beaches of the world. From Iwo Jima up iron and steel, sheets of tin and copper and the wealth of natural raw materials and Tarawa-to Normandy, the LSD was and moved them on to manufacturing which fed it. The Great Depression had left the symbol of the power of the United plants where machine tools made better ma­ us with idle manufacturing lines and many States moving onto the islands of the Pacif­ chine tools and they in tum were shipped operations were being run on one shift, but ic and the continent of Europe of bringing out to make nuts and bolts, rivets, ball bear­ production machinery had not been sold off freedom, once again, to those beleaguered ings-hundreds of thousands of parts and abroad, mines flooded. nations. pieces of parts-which in tum became other Machine tools are so important to a war Forty years later, those countries still look manufactured goods-then needing to be effort that D-Day was put off for one whole to us to be the leaders of the free world. packaged and shipped-and, at the end, the year because of the shortage of machine The young men who disembarked in those wholesalers and retailers took over. tools in 1941. All those lives lost not for lack far off lands came home many years ago­ On every level of this production, energy of weapons, but for the lack of machining their jobs well done. Now, it is their sons was used, jobs created, value added at each centers to make the weapons. and grandsons who will be loading this step and always-always-remember-tax Behind every batallion in the field stands ship--who may well be landed off this ship revenues were paid to every level of govern­ a phalanx of machinists and tool and die on distant shore. ment. makers, pattern makers and welders. The world has changed a great deal in To service this manufacturing base-sever­ The average age of a machinist in this forty years, but America still assumes the al tiers deep--a service industry developed. country-two years ago-was 59 years of responsibility for defending freedom where Banks, insurance companies, restaurants, age. It takes 8 years to fully train a machin­ it is threatened, where it needs our support. motels: McDonald's grew apace with the ist! 6782 EXTENSIONS OF REMARKS April 8, 1986 We are at a grave time in the history of ... conforming to the law. The shock, to READER'S DIGEST ON SOVIET this nation. We are making decisions not me, is that I have to push. That the issue SPECIAL FORCES just for this year, but for the next century. would even be moot. We are charged with taking a course which To be a leader means many things. Pri­ will effect not only Defense, not only our mary in the world today . . . it means to HON. JIM COURTER position as the Leader of the free world, protect freedom. To do that, we must be OF NEW JERSEY but-we are charged to cast a mold which strong in all ways. We must not forget that IN THE HOUSE OF REPRESENTATIVES will determine the political and social future without domestic industry, there can be no of the year two thousand. weapons. That in previous wars this has Tuesday, April 8, 1986 I reject the notion that we will be servants been our major strength, our major contri­ to the rest of the world. I reject the theory Mr. COURTER. Mr. Speaker, most of my that we will import raw materials and all bution to our allies. colleagues are probably unaware that the first the finished products that a consumer-De­ We must secure this promise, not only for Pershing II missile deployed in Europe was fense society needs. I dispute the idea that a them, but for our future independence and not part of NATO forces. In fact, a model of nation dependent upon the rest of the world safety. the Pershing II was deployed prior to 1983 at for what it needs can be a leader or in the We stand here today in debt to the gen­ erations of brave Americans who did not a Soviet special forces training base. As the end, even remain "independent" as our Con­ following article from Reader's Digest ex­ stitution says we must! come back from places like Iwo Jima, who We have proved over two hundred years did not survive the battle of Fort McHenry. plains, the Soviet Spetsnaz, special purpose that we are the greatest, most compassion­ We also owe it to their memory to fight for forces have detailed plans for disrupting vital ate nation the world has ever known. Were the return of America's strength. NATO military plans and destroying key mili­ it not so, Japan and Europe would not be As I christen this ship, please join me in tary installations-including Pershing II and competing with us today. We rebuilt them committing your energies to the continuing GLCM bases-during time of crisis. Perhaps with our nation's money-not as Con­ fight for a stronger America! most chilling is the revelation that senior U.S. querer's, but as an enlightened country­ and NATO military authorities are marked for never turning our face away from suffering. assassination, to prevent the granting of per­ Now-it must be our turn! It is time that we look to our own needs as a nation, to the mission for nuclear weapons release. good of our own people. I will sponsor, this Soviet special forces have been instrumen­ year, legislation calling for a "Marshall Plan OSCAR J. KUNKLE, WINNER OF tal in some of the most successful and brutal for America." THE SPIRIT OF PHILADELPHIA Soviet military operations in recent years. The empty factories and the men and AWARD Czechoslovakia in 1968; Afghanistan in 1979; women without jobs are no longer Sweden in 1984-all bear the unmistakable abroad . . . in the ruins of the Second fingerprints of the shadowy Spetsnaz. And, as World War ... Today, they are here ... in HON. ROBERT A. BORSKI a recent magazine article indicates, they are America! Too many of our steel mills stand busy planning the next operation, perhaps empty. Too many machine shops are in OF PENNSYLVANIA using female commandos against United ruin ... their machinery long ago sold off IN THE HOUSE OF REPRESENTATIVES to Singapore, to South Korea. The desola- States military bases in Britain. I commend the tion is here. And, we are much the poorer Tuesday, April 8, 1986 Reader's Digest article to your careful atten­ for it. tion. 1 want to put the "Chrysler bail-out" pro- Mr. BORSKI. Mr. Speaker, I rise to recog- The article follows: gram in place once again to re-industrialize · nize Mr. Oscar J. Kunkle, recipient of the Spirit [From Reader's Digest, Apr. 19861 America. Our companies have starved for of Philadelphia Award for his 43 years of serv­ long term, low interest capital and they ice in the Burholme First Aid Corps. Through SPETSNAZ: THE SOVIETS' SINISTER STRIKE need time to recover the awful effects of the all these years of volunteer work and leader­ FORCE high dollar. steel industry . . . all of our industries . . . patcher and ambulance attendant. For the A military bus pulls up to a U.S. Army need time to ride out the fall of the dollar. past 12 years he has been president of the training center in West Germany. Assuming We must also find some formula which will corps. Even now, at age 74, he still drives an it is fiUed with Gis coming back from town, compensate our companies for the competi- ambulance every week and works as a dis­ sentries approach the bus routinely, only to tive edge which government subsidization patcher. be cut down by bursts of fire from weapons gives foreign products. with silencers. The bus roars into the base as The President's Voluntary Restraint It is important to realize that Mr. Kunkle has the two commando teams on board don gas Agreement with the European Community contributed over 40 years of work as a volun­ masks. of steel producers started October 1, 1985 teer. He has never received any compensa­ Inside the facility, Americans, whose duty . . . and still, many countries have not tion for his contributions to the ambulance is to guard Pershing II nuclear-missile signed on. The clock on the five year agree- corps, but has simply done it to help serve his launchers, die within minutes beneath an ment is running, and they will not sit down invisible blanket of nerve gas, and the with us to negotiate. All the while European community. launchers are rendered useless. exports of steel have been as high as 30% of The Spirit of Philadelphia Award is given by A second Pershing base in Heilbronn falls the American market-the Restraint Agree- WCAU TV, channel 10, to honor just such in similar fashion. At the same time, jive ment calls for 18.5%. people. It exists to recognize the people who key NATO communications facilities-in I have asked the Congressional Steel help keep our community going, who freely Maastricht, the Netherlands, and in the Caucus to urge that the clock be stopped. give of themselves and their time to help their German towns of Boer/ink, Kindsbach, The five year period should begin to count neighbors. WCAU has chosen a particularly Massweiler and Vogelweh-are knocked out. when ALL Countries have signed aboard. Con.tusion reigns at the NATO high com­ The nonconforming countries should not be fitting recipient of its honor in Mr. Kunkle. mand in Brussels. Top officers and political given a shorter overall period of time in I join channel 10 and the members and sup- leaders are missing. Some are found dead in which to control their shipments. porters of the Burholme First Aid Corps in sa- their homes. l think we have to get after these people. luting Oscar Kunkle for his many years of Meanwhile, frogmen emerge from the If, in Defense, America must always be d d. d rk · b h If f h" · hbo d chilly waters near Ke/lavik, Iceland, a vital ready; so must we also be ready to defend e ICate wo In e a o IS nelg rs an link in NATO's antisubmarine operations. our vital industrial base! For a year now, 1 his community. Both he and the first aid corps Using equipment deposited on the sea beds have been pushing DOD and AID to ship deserve our respect, admiration and support months earlier, they immobilize reconnais­ American-flag bottoms on foreign purchases for all their work. sance and communications facilities. April 8, 1986 EXTENSIONS OF REMARKS 6783 No allied-or even neutral-country is But on a typical mission, each Spetsnaz cial Operations in U.S. Strategy, Defense immune. In Stockholm, Sweden. a machine­ member carries the Kalashnikov light auto­ Intelligence Agency expert John Dziak gun battle near the palace ends with the ab­ matic rifle with 300 rounds of ammunition writes: "In Czechoslovakia in 1968, the duction of the royal family by frogmen, who and a bayonet that doubles as a saw and Soviet seizure of the Prague airport was car­ had lain in wait until signaled by agents in wire cutter, a P6 pistol with silencer, six ried out by Spetsnaz troops under KGB the capitaL hand grenades or a hand-grenade launcher, orders. These units arrested party leader The best Soviet commandos, with the help and a James Bondish knife that, at the Aleksandr Dubcek and dispatched him to of long-established covert agents, have sud­ touch of a button silently propels a lethal Moscow. Similar missions were carried out denly brought the NATO alliance to an ex­ blade a full 30 feet. against other 'enemies' on KGB lists." cruciating crisis. With its tactical nuclear Sheer brutality marks Spetsnaz methods. The Christmastime invasion of Afghani­ capability, its communications and its lead­ One of their main training centers-at Zhel­ stan in 1979 was a classic Spetsnaz oper­ ership crippled in one stroke, what will the tyye Vody in the Ukraine-is close to con­ ation. Key Afghan army officers were lured West do to prevent a Soviet invasion of centration camps. According to Suvorov, to a reception in honor of "Afghan-8oviet Western Europe. gulag inmates are used in hand-to-hand friendship." As the officers celebrated, they Although these events are hypothetical, combat training, allowing Spetsnaz troops were locked in the hall and blown up by a planning for them is real. Gen. Pyotr Ivano­ to punch, gouge, kick and maim at will. "It's Spetsnaz unit. vich Ivashutin, the balding, bull-necked much more realistic than sticking a knife in But according to KGB defector Maj. commander of Glavnoye Razvedyvatelnoye a sack of sand," he says. Vladimir Kuzichkin, the primary objective Upravleniye , the intelligence arm of INFILTRATE, ASSASSINATE of the several hundred Spetsnaz men flown the Soviet military, has at his disposal a Intelligence reports on a secret Spetsnaz into Kabul was the assassination of Presi­ force of 30,000 men and women trained to training base west of the Urals prove that dent Hafizullah Amin. On December 27, carry out these tasks. they train against U.S. and NATO targets. Spetsnaz forces wearing Afghan uniforms Western intelligence services have been There are fullsize mockups of civilian air­ and under KGB command approached the slow to learn of the existence and makeup liners that many of the This audacious strategy takes advantage that the Soviet Union is seriously planning Soviet Union's best athletes, particularly of NATO's unwieldy structure. Alliance pro­ its offensives." members of its Olympic team, are Spetsnaz cedures require consultation among its 16 Our Western allies have begun to cope commandos. International sporting events member countries in the event of hostilities, with the ugly reality of Spetsnaz. For exam­ give them the double advantage of homing and it takes a few days to mobilize NATO's ple, Britain is strengthening its Territorial skills in marksmanship, skiing and swim­ forward defense. Trucks have to line up at Army and has established a Home Service ming, while familiarizing themselves with storage sites in Western Europe, for exam­ Force for defense and to improve its guard the countries to which they might return ple, to load nuclear warheads, then take systems for vital installations. And with someday as saboteurs. take them to their units along public roads, good reason. Jane's Defence Weekly report­ making ideal targets for Spetsnaz ambush ed last January: "The Soviet Union has Spetsnaz officers and men enjoy higher teams. As Britain's Military Defence warned pay, better food, longer leaves, quicker pro­ in 1984, "the main threat is not large-scale maintained a secret detachment of female motion and earlier retirement than regular invasion but sabotage by squads of specially Spetsnaz forces near Greenham Common army personnel do. But they earn their Air Base since the deployment of U.S. Air perks. In survival exercise they are dropped trained troops." Force land-based Tomahawk cruise missiles over wilderness areas and then required to MYSTERIOUS SUBMARINES there in December 1983. Soviet defectors spend days or weeks on their own-without According to U.S. intelligence, Spetsnaz have disclosed that several trained agents sleeping bags. troops have been at work for years. In Spe- infiltrated women's protest groups at 6784 EXTENSIONS OF REMARKS April 8, 1986 Greenham Common and were present at all on the College Work-Study Program on col­ [SEOG]. The Berdan Institute in Totowa times." leges and schools in my district and on the stands to lose 2. 7-percent SEOG awards, the The Pentagon believes a multilayered re­ State of New Jersey. While we had been led Clifton School of Business will lose 4.5-per­ sponse is necessary to foil Spetsnaz. Those groups, including leading public officials to believe by the sponsors of that budget-bal­ cent SEOG awards, and the Katherine Gibbs threatened by such a strike force, should be ancing legislation that the sequestration of School in Montclair will lose 5-percent SEOG made aware of its capabilities. Agencies funds would be even-handed, a careful read­ awards. such as the FBI and Border Patrol, which ing of the report (attached) reveals that such The inequities in these reductions in my would detect and respond to an attack by is not the case. own district can be found elsewhere in the Spetsnaz forces, must know what to look for At congressional request, on March 27, State of New Jersey. Hudson County Commu­ and be prepared to react. Finally, our intel­ 1986, the U.S. Department of Education pro­ nity College in Jersey will lose 22.4 percent of ligence-gathering on Spetsnaz-leanring duced a computerized survey showing marked its Federal assistance, the Wilfred Academies how, when and where they will strike-must differences in the College Work-Study Pro­ will suffer an 11-percent reduction in aid, and be beefed up. "The development of Spetsnaz has been gram for institutions in New Jersey and across the Institute of Business and Technology in rapid, and we are only now recognizing the the whole country. This document is entitled Newark will have its Federal aid cut by 23.8 magnitude of the threat they pose," con­ the " United States Department of Education percent. At the same time, there will be no re­ cludes the Pentagon's Koch. "We must Campus-Based Student Financial Assistance duction in college work-study allocations for vastly improve our rear-area security to deal Programs-Comparison of Award Year 1986- both Princeton University in Princeton and with that threat." 1987 Tentative Awards: Actual Awards Ac­ in New Brunswick. cording to the Balanced Budget and Emergen­ Mr. Speaker, it strikes me as blatantly unfair cy Deficit Control Act of 1985 (Public Law 99- to reduce allocations for Federal support for THE ACTUAL EFFECTS OF 177) and Estimated Awards According to the higher education in this manner. Some stu­ GRAMM-RUDMAN ON FEDERAL Fiscal Year 1986 Appropriations Act (Public dents will be penalized while others will not; AID TO HIGHER EDUCATION Law 99-178)." The data reveals that some in­ some colleges and universities will suffer re­ stitutions face cuts of as much as 80 percent duced enrollments; others will not. Career op­ HON. ROBERT A. ROE in the face of a 4.3-percent reduction as man­ portunities for some New Jersey students will OF NEW JERSEY dated by Gramm-Rudman. be jeapordized; others will not see their career IN THE HOUSE OF REPRESENTATIVES In my district, William Paterson College will goals threatened. These inequitable reduc­ lose 2 percent in student assistance funds, tions in allocation for Federal aid to education Tuesday, April&, 1986 Passaic County Community College will lose violate the basic principles of American de­ Mr. ROE. Mr. Speaker, I rise to share with 9.3 percent in college work-study awards, and mocracy, and should not be allowed to stand, my colleagues information about the disas­ Montclair State College will lose 11 percent in for they are not in the best interests of our trous effects that Gramm-Rudman will have supplemental educational opportunity grants Nation.

U.S. DEPARTMENT OF EDUCATION CAMPUS-BASED STUDENT FINANCIAL ASSISTANCE PROGRAMS-COMPARISON OF AWARD YEAR 1986-87 TENTATIVE AWARDS: ACTUAL AWARDS ACCORDING TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985 (PUBUC LAW 99-177) AND ESTIMATED AWARDS ACCORDING TO THE FISCAL YEAR 1986 APPROPRIATIONS ACT (PUBUC LAW 99-178)

SEOG awards CW-S awards NOSL awards Institution and city Actual Public ~ 99- Estimate Public ~ 99- Actual Public ~ 99- Estimate Public ~ 99- Actual Public ~ 99- Estimate Public ~ 99- 177 178 177 178 177 178

NEW JERSEY $5,152 $5,152 0 0 0 0 ~~!:s~ · ~~.:::::::::::::::::::::::::::::::::::::: : ::::::::::::::::::::::::::: 51 ,208 51,208 0 0 0 0 30,513 37,701 $60,139 $68,578 $100,000 $100,000 =~=~t':a~: .. ~.~~.~~.::::::::::::::~:::::::::::::::::::::::::::::~::::::::::::::::::: 5,116 5,260 0 0 7,295 7,812 156.740 156,740 165,843 170,691 0 0 trJa=u~~~~~kewoocL::::::::::::::::::::::::::::::::::::::::::: :::::::::::~:: :: 121,923 121,923 441,066 441,066 49,046 49,046 5,508 5,508 6,412 7,022 0 0 101,605 108,183 112,117 112,117 100,000 100,000 ~~~~~:::~~: ::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: : :: 10,300 10,978 10,000 10,000 0 0 35,683 46,397 90,243 105,121 15,000 15,000 28,220 32,084 59,480 64,923 0 0 29,588 29,588 50.801 50,801 0 0 169,739 182,608 241,556 276,073 0 0 ~~~f:~:::: ;;:=::::~::~;::~~:::~ 6,817 6,817 0 0 0 0 5,000 5000 0 0 0 0 ~ ::: ~ ~: ~ :~ : =:.~.:: ::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::: 5,000 5,000 0 0 4,000 4,000 5,000 5,000 0 0 4,000 4,000 5,000 5,000 0 0 4,500 4,500 32,317 41 ,291 49,066 54,353 18,737 21,720 19,199 19,688 5,000 5,000 0 0 &~1::~::~E:::::~~::;::::;:::::: 29,559 30,982 0 0 0 0 20,053 21,592 20,000 20,000 0 0 =~~~~~~.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 36,013 38,6338 22,723 26,227 52,114 53,852 Concorde School of Hair Design, Eatontown ...... 5,000 5,000 0 0 6,764 6,764 33,103 38,376 124,115 124,115 50,000 50,000 10,870 11 ,664 23,000 23,000 0 0 224,961 275,197 0 0 450,000 450,000 0 0 9,234 9,234 0 0 7,072 7,072 0 0 4,462 4,462 5,654 5,792 0 0 0 0 10,188 12,085 0 0 27,488 30,261 8,366 9,034 0 0 0 0 125,638 151,061 212,862 232,710 174,981 174,981 45,666 45,666 0 0 0 0 18,587 18,587 29,750 29,750 0 0 45,625 45,625 0 0 40,224 40,225 8,100 8,100 0 0 10,935 10,935 93,932 101,137 66,929 80,456 0 0 116,600 116,600 481,314 481,314 0 0 8,694 8,694 0 0 0 0 798,181 798,181 516,411 536,288 0 0 16,973 16,973 27,990 27,990 0 0 5,216 5,394 0 0 0 0 5,355 5,355 0 0 0 0 20,000 20,000 18,000 18,000 0 0 434,250 434,250 734,038 734,038 0 0 15,881 17,583 45,069 47,374 0 0 43,241 50,760 lll,873 144,192 0 0 April 8, 1986 EXTENSIONS OF REMARKS 6785 U.S. DEPARTMENT OF EDUCATION CAMPUS-BASED STUDENT FINANCIAL ASSISTANCE PROGRAMS-COMPARISON OF AWARD YEAR 1986-87 TENTATIVE AWARDS: ACTUAL AWARDS ACCORDING TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985 (PUBLIC LAW 99-177) AND ESTIMATED AWARDS ACCORDING TO THE FISCAl YEAR 1986 APPROPRIATIONS ACT (PUBLIC LAW 99-178)-Continued

SEOG awards CW-S awards NDSL awards Institution and city Actual Public law 99- Estimate Public law 99- Actual Public law 99- Estimate Public law 99- Actual Public law 99- Estimate Putmc law 99- 177 178 177 178 177 178

0 0 10,000 10,000 0 0 45,969 57,261 70,727 92,878 0 0 ::~~i ~l~:r:~~~~~ :::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 10,278 10,278 0 0 0 0 = 108,870 108,870 432,823 432,823 0 0 t:ri ~tyG:e~eM~:rir~ ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 32,797 34,510 36,675 36,675 0 0 140,000 140,000 270,288 294,251 50,000 50 , ~ 6,881 7,636 0 0 0 17,106 17,756 0 0 36,490 40,418 =~!;:"!~~~~~~~~~~~Uncoln Technical Institute, Union ...... :::: ~ ~::::::::::::::::::::::::::::::::::::::::::::::::...... 31 ,805 31 ,805 0 0 7,497 7,786 115,790 115,790 0 0 73,872 73,872 9,580 11,266 0 0 0 0 55,593 59,754 124,466 128,090 0 0 40,166 40,200 109,189 121,815 25,000 25,000 176,558 181,965 163,797 176,430 0 0 fi~~~~ ~ ~::::: ~ 173,397 195,027 332,176 370,210 4,165 11,227 5,148 5,303 6,820 7,560 0 0 National Education Center -Bryman Campus East. East Brunswick ...... 10,810 10,810 10,000 10,000 1,718 1,718 National Education Center-Rets. Campus Nu~ Nutley ...... 16,780 19,695 10,000 10,000 0 0 Natural Motion Institute of Hair Design, Je~ ·ty ...... 27,674 27,674 0 0 0 0 5,148 5,148 0 0 15,522 15,966 141,546 165,237 184,477 221,097 90,000 90,000 6,013 6,467 35,000 35,000 0 0 $~~~·=~= ~ :;:; ;:;: 30,634 32,000 88,087 90,000 30,000 30,000 7,950 8,788 0 0 19,441 20,000 6,292 6,843 0 0 0 0 50,364 58,300 149,161 164,539 0 0 6,753 6,753 0 0 0 0 ~~~~~~-== ~ : ;: 11,895 11,895 0 0 22,879 25,272 5,000 5,000 0 0 0 0 10,756 11,770 9,288 10,901 0 0 5,000 5,000 0 0 0 0 0 0 55,000 55,000 65,850 65,850 =~~ij;n : -~ :~; 885,045 885,045 1,060,000 1,060,000 415,885 472,173 ::: 45,146 45,146 93,517 93,517 0 0 ~::,ica&t~~g~f 0= .~~:.'.:: : ::::::::::::::::::::::: : : : :::::::::::::::: : ::::::::::::::::::::: 82,965 82,965 213,274 213,274 0 0 140,538 158,390 320,338 320,338 22,133 28,104 53,781 57,418 0 0 50,750 50,750 5,000 5,000 0 0 0 0 1,555,263 1,555,263 1,959,278 1,959,278 0 0 196,675 209,663 414,465 414,465 0 0 18,495 18,495 39,983 41 ,798 0 0 33,719 33,719 2,000 2,000 0 0 72,185 72,185 0 0 0 0 214,020 265,529 390,158 486,110 450,000 450,000 !i: 0 0 3,500 3,500 0 0 lllii1~1~~: 1: 28,000 28,000 14,428 17,833 0 0 Stevens Institute of Technology, Hoboken ...... 143,716 172,727 625,772 625,772 178,169 202,616 70,681 82,628 147,616 163,022 120,000 120,000 8,869 8,869 17,000 17,000 0 0 ~:=~~1!,~:~::::: : ::::::::::::::::::::::::::::::::: : ::::::::::::::::::::: 14,221 14,724 0 0 1,289 1,290 The Claire Demarzo Institute of Professional, Westwood ...... 5,000 5,000 0 0 0 0 96,581 100,412 167,225 176,558 0 0 51 ,306 58,537 76,794 98,320 0 0 21 ,290 21 ,290 0 0 47,882 47,822 ~=on~i~$F.=~~:::::::::::::: : :::::::::::::::::::::::::: : :::::::::::::::::::::: : ::::::::::::::: 17,940 17,940 392,794 450,000 749,909 805,513 274,627 274,627 305,908 305,908 0 0 41,749 43,805 76,337 76,337 32,467 36,935 93,143 93.143 117,277 131,745 81,597 81,598 ~~. J~~~:~:~~f::;::~~;· lll,166 113,443 229,583 229,583 0 0 State totals for New Jersey ...... 8,616,080 9,003,288 12,560,852 13,115,268 3,712,001 3,881,528

BACKGROUND ON TVA The Tennessee Valley Authority [TVA] is a the past 15 years. TV A may be the only elec­ PROBLEMS Federal corporation running the Nation's larg­ tric service provider in the United States that est electric power system-and managed by a sets its own prices, Without a formal public committee. It may be the only organization of hearing process, without regulation from any HON. RONNIE G. FUPPO its size in the Nation operating under a board outside force or group of forces. OP ALABAMA of directors that both makes policy and carries What, then, are the problems that have led IN THE HOUSE OF REPRESENTATIVES out the management of that policy-by a to the proposal to amend the TV A Act? Tuesday, AprilS, 1986 three-member committee. First, an archaic, irrational management It is time to end this inefficient system by structure-established without extended anal­ Mr. FLIPPO. Mr. Speaker, the Tennessee which the Agency is under a three-headed ysis more than half a century ago. This man­ Valley Authority is an Agency of Government creature, a troika system that means no one agement-governance structure has two seri­ which has been and continues to be of great person is responsible, no one person is ac­ ous flaws: value to the Nation and to the region in which countable, no one monitors management. It mixes apples and oranges-putting into it is located. If management by troika were not bad the hands of one body the jobs of policy and However, problems have begun to surface enough, this Federal Agency is virtually a law in recent years. Because of my great esteem management. When the Board also manages, unto itself, insulated from outside forces. It there is no one to monitor management. for the potential service of TV A to the Nation, makes decisions in a closed manner. It is in­ Management by committee, with no person I have devoted considerable time to a review sulated from "interference" by the Congress responsible and no one accountable. of the problems and an evaluation of correc­ and the President-and insulated from "inter­ Second, a bureaucratic organization that is tive actions. I want to share my findings with ference" by the people who pay for its electric my colleagues. power program, the electricity ratepayers in virtually a law unto itself, insulated from out­ side forces. TV A may have more autonomy, WHAT IS THE PROBLEM? the Tennessee Valley. and less accountability to outside forces, An elephant, the old story goes, is a crea­ This Agency, amazingly, sets its own elec­ than ture put together by a committee. tricity prices-prices that have skyrocketed in any Federal agency of its size and scope. 6786 EXTENSIONS OF REMARKS April 8, 1986 Third, no voice in policy making by the elec­ and in its role for the future, it is time to move War Department in 1919 and called for a tric ratepayers of the region-who pay every beyond lamenting the symptoms of the prob­ board of from 3 to 11 members appointed by dollar of TVA's electric power costs. Six mil­ lem. This proposal is an effort to prepare TV A the Secretary of War. The first Norris bill in lion electric ratepayers, paying TV A well over for continued service to the people of the 1922 called for three full-time board members $4 billion a year, but with no representation on region and of the Nation by updating TV A appointed by the President for no fixed term. the TV A Board, no formal process to critique management structure through introduction of In 1928, the first TVA bill approved by the the Agency on billion-dollar decisions. modern corporate governance concepts for Congress established a fiVe-member, part-time What has been the result of these circum­ greater responsiveness and accountability. board and a chief executive officer. The stances? The people of the United States and the elec­ second TV A bill to pass both Houses-in The results have been: tric ratepayers of the TV A region deserve at 1931-provided three part-time board mem­ Ineffective management, so ineffective that least this much in this valuable institution. bers and general control and management of the TV A Board has been forced to bring in THE SCOPE OF THE PROPOSAL the agency by a general manager. The first outside private consultants to manage the nu­ The legislation is in two parts. The first fo­ bills introduced in 1933 still called for a strong clear power program. Employee morale has cuses on a small portion of the Tennessee general manager but differed on the number suffered. Valley Authority Act, section 2, and a para­ of days board members could serve per year. Bad policy making, perhaps the most disas­ graph in section 3, dealing with the composi­ After President Roosevelt's April 10, 1933, trous in this Nation's electric utility industry. tion and duties of the board of directors. No message on TV A, new bills were introduced Bad decisions-made without input, by a other sections of the TV A Act are invovled. calling for three full-time board members. Ulti­ three-member committee-that may cost the The second part amends the Inspector Gener­ mately, the idea of a general manager was Tennessee Valley ratepayers as much as $10 al Act to give the TVA's inspector general dropped from the enacted version. But for billion-for nuclear power facilities that will not statutory structure, authority and responsibli­ most of the period when Congress was active­ produce 1 dollar's worth of electricity. Waste, ties. ly considering TV A or Muscle Shoals legisla­ on a huge scale. The proposal: tion, emphasis was on a part-time board, or No clear responsibility to the ratepayers for First, recognizes the TV A's special role as a Muscle Shoals legislation, emphasis was on a these multibillion dollar policy mistakes. The Federal corporation. ratepayers, who pick up the tab for every part-time board, and chief executive officer Second, reflects the fact that TV A is a com­ chosen by the board to manage the agency. dollar of TV A's power system costs, have no plex organization with some highly technical representation, no formal process of input and From the perspective of the first board activities and requires sophisticated, profes­ members who had a hand in drafting the final protest No voice. sional management of its operations plus the version of the TV A Act, the nature of the An agency that sets its own prices, without public participation and support of its policy tasks facing the start up of the agency and even an adversarial hearing process. function due to its statutory political nature. the political urgency for rapid results in those A weakened agency internally, due in part Third, is based on the reality that the TV A is to the Board's attempt to handle both policy a different enterprise than a publicly held busi­ desperate early New Deal days may have making and management, and doing neither ness corporation and a different enterprise seemed to favor the kind of three-man full­ well. than the original institution itself. 1 time board which emerged from the confer­ What does this proposal offer to deal with Fourth, establishes a new form of manage­ ence committee. Yet the most noted early these problems? ment which incorporates essential elements of TV A scholars expressed grave doubts about The proposal would: prevailing corporate governance structure for the wisdom of this structure. Even the first Put the Agency under a modern manage­ greater control, accountability, and respon­ board changed its views on the matter of a ment setup, based on the model of a busi­ siveness. chief executive officer and established a gen­ 2 ne.ss-like corporation. This would include a The thrust of the proposal would fix the re­ eral manager in 1936. part-time board cohcentrating on policy­ sponsibility for day-to-day operations of TV A One early TVA scholar, Herman Finer, writ­ making and on monitoring the Agency's per­ in a single chief executive officer, the same as ing in 1944 on "TVA: Lessons for International formance, a professional manager--chief ex­ is found today in most of the corporations in Application," was clear about the question: ecutive officer-selected by the Board, to this country and in all the cooperatives and Whether a full-time board of directors manage the Agency on a day-to-day basis, municipal systems which distribute TV A was, or is, necessary is doubtful. It was not and Board committees to deal in depth yet at power. The responsibilities of the board would the deliberate result of careful congression­ an arms length from day-to-day management al meditation on alternatives • • •. Experi­ change from day-to-day management of the ence of the first 8 years of the TVA's oper­ with such policy issues as electric rate­ agency to monitoring and regulating the ation • • • certainly raises the question making. agency and making policy adjustments as whether a board of three men each with Require, for the first time, that TV A directors necessary. equal authority could not be better replaced be representative of the region, and of the Under such a concept, the board should be with a single administrator. electric ratepayers. viewed as trustees for the combined constitu­ Another scholar, C. Herman Pritchett has Provide for an Inspector General, under encies of the agency, rather than the current written: Federal law, to report to the new, part-time, concept of the board as technocrats attempt­ My experience and information concern­ policy-making board. The recently appointed ing to manage a complex public organization. ing the TVA are largely limited to the first TV A Inspector General reports to the Board, The major change is the elimination of the 10 years of its existence. However, during but this is the same board that manages the board's present dual, and sometime conflict­ that period the problems resulting from a Agency. So, at present, the IG, in effect, re­ ing responsibilities, for establishing policy and small full-time board were only too evident. ports to management. Under this proposal, then implementing the policy without any Thus, it seems the problems attributable to the part-time Board would focus on policy. other independent review or evaluation. The the board structure and size are not limited to Thus, the Board would oversee and monitor board remains the ultimate corporate author­ recent times. The difficulties have been there management, not be a part of it. ity. from the beginning. TV A became half a century old in 1985. THE HISTORY While various constituencies may differ with From TVA's early days questions have been Compared to other elements of the TV A Act positions expressed by individual TV A direc­ raised about the wisdom of the dual role of and its predecessors, the composition and tors over the years, it is unproductive to at­ policy and management thrust on the three­ duties of the board and the functions of gov­ tempt to second guess or berate prior deci­ member Board. Rhetoric, New Deal enthusi­ ernance of the TV A received scant attention sions and actions of particular directors or asm, and the delivery of highly desirable serv­ of the Congress of 1933. The initial TV A or boards. Under the tripartite management ices helped to mask the structural problems Muscle Shoals legislation originated in the scheme established by the original legislation, and to thwart those who expressed concern about the symptoms of the problems. As the TV A faces serious real problems in operation 1 There Is no evidence either early legislators or • For an expanded review of the early manage­ TVA boards anticipated the current situation re­ ment structure proposals, see staff discussion of a nuclear power system, in employee garding financing of the agency or the scope of the paper: The Tennessee Valley Authority Board: morale, in the confidence of those it serves, electric program. Why Three Full-Time Members? April 8, 1986 EXTENSIONS OF REMARKS 6787 no single director can assume the responsibil­ quarter of a century, since the self-financing residents and for its efforts in promoting better ity nor suffer the blame for specific manage­ amendments of 1959. Congressional attention understanding of the needs of retired persons ment failures. While the simple approach to is primarily after-the-fact due to the nature of among all of us. As a member of the House TVA's problems would be to fault board mem­ the relationship between the executive and Select Committee on Aging, I share these bers with whom one disagrees, a more thor­ the legislative branches. Presidents do not, very concerns. I am pleased that the Protes­ ough analysis points strongly to the structure even though they nominate TV A directors. tant Home will continue to make a highly posi­ through which the board operates as the Presidents appear to have more pressing na­ tive contribution to the people of the Third weak link in the governance of the agency. tional and international problems to absorb Congressional District and to everyone in the THE 1959 CHANGES their attention. OMB does not-even though Philadelphia area. A profound change in the nature of TV A OMB and TV A engage in constant skirmishes. I know I am joined by all my colleagues in was brought about by the self-financing legis­ As important as the TV A decisions are to wishing the Philadelphia Protestant Home the lation of 1959 when the responsibility for the the people of the region in terms of the agen­ best of all possible success in its new facili­ electric power program was transferred from cy's ability to make commitments which re­ ties, and with all its future activities. the people of the United States to the people quire payment by the people of the service of the TV A region. In expressions through the area, the business of TV A fades to inconse­ quential in comparison to other pressing na­ BIELARUSIAN INDEPENDENCE political process in the early 1950's, the DAY people of the United States refused to provide tional problems with which the President and further resources for development of the the Congress must deal. As the national TV A's electric power program. The decision budget approaches a trillion dollars a year, the HON. FRANK ANNUNZIO was intolerable to the people of the TV A TVA's appropriated program of a mere $100 OF ILLINOIS region and their desire for the continued avail­ million or so appears in only the most detailed IN THE HOUSE OF REPRESENTATIVES ability of electric energy culminated in the accounts. Tuesday, AprilS, 19S6 1959 TV A self-financing legislation, again The essential result of the 1959 amend­ through the political process. ments was to make the people of the Tannes­ Mr. ANNUNZIO. Mr. Speaker, March 25 Thus, in 1959 the TV A became basically a see Valley region totally responsible for paying marked the 68th anniversary of the Bielaru­ regionally-financed agency in regard to elec­ for whatever costs the TV A power program in­ sian National Republic, and I am glad to take tricity, an agency whose policies directly af­ curred. The TVA Board tells the people of the this opportunity to commemorate this impor­ fected the pocketbook of every citizen in the region what expenditures are necessary and tant event in the history of a free people. region. But though this drastic change in ac­ what the costs will be. There is no other The Bielarusian Coordinating Committee of countability and responsibility took place a appeal or review, even an ineffective proce­ Chicago, dedicated to the restoration of quarter of a century ago, there has been no dure, available to the public to challenge human liberty in Bielarus, held their annual change in TVA's formal methods of account­ these charges or question the appropriate­ commemorative banquet and program to mark ability to the people. ness of actions. this occasion. This year's observance was For example: held on Sunday, March 23, at 1 p.m. at the There is no independent regulation of TVA's Regency Inn, 5319 West Diversey Avenue in THE PHILADELPHIA Chicago, and I join with the members of the wholesale electric rates-which make up PROTESTANT HOME more than 80 percent of the total retail cost of Committee in their prayers, hopes, and deter­ electricity for the Valley's users-by any entity mination that the Bielarusian people will once other than a TV A Board composed of policy­ HON. ROBERT A. BORSKI again have a free nation. maker I managers, who also have the respon­ OF PENNSYLVANIA As noted by the committee, the Bielarusian sibility for operations of the agency. IN THE HOUSE OF REPRESENTATIVES independence commemoration is a sad occa­ sion, and one seldom hears about Bielarus in There is no formal process by which TVA's Tuesday, AprilS, 19S6 decisions, sometimes multibillion-dollar deci­ our press reports because Bielarus has been sions, are subject to public review, through Mr. BORSKI. Mr. Speaker, I rise to pay trib­ completely cut off from the world by the heavy hearings or other methods. ute to the Philadelphia Protestant Home, presence of Soviet troops, and because There is no administrative device through which has just completed a $13 million con­ Moscow continues to destroy the Bielarusian which the people of the region are represent­ struction project which will greatly improve the Nation by assimilation. The Russians have at­ ed in the TV A decision-making process. services it offers to its residents. tempted to wipe out the Bielarusians' history, There is no formal procedure by which the The Philadelphia Protestant Home was their culture, and their language, and want region's people or their representatives can formed in 1890 by 14 local churches. Since them to completely forget their past. The com­ effectively comment on TV A actions. then it has grown into a group of 34 churches munists have written new books, manufactur­ In practice, numerous informal methods are representing five different denominations. ing a new culture and inventing a new history used by the TV A Board to air public opinion. These churches provide full support for the for the Bielarusian people in an attempt to The agency, in fact, has in recent years Protestant Home, which has a staff of 160 completely liquidate the Bielarusian people. stepped up its efforts to obtain the views of and serves over 500 residents. Nevertheless, many Bielarusians have stood people in the region. But-in an era where The Protestant Home makes a strong com­ firm in their resolve to oppose the actions of public participation and organizational respon­ mitment to caring for its residents, even de­ the Communists. siveness are the trend of the times-TV A pol­ voting $500,000 a year to supporting residents To mark this 68th anniversary, I added my icymaking rests almost totally in the hands of who cannot pay themselves. name to a Congressional letter sent to Gener­ three persons who not only make those poli­ To honor the completion of 3 years of work al Secretary Gorbachev in which I called for cies, but manage the execution of the policy in expanding and upgrading their facilities, the the immediate release of Mikhail Kukobaka, as full-time agency employees. 3 Protestant Home is sponsoring a week long the brave Bielarusian dissident who was first The TVA's statutory mandate is so broad series of seminars on issues concerning older arrested in 1970 for "anti-Soviet slander," and that no single outside institution can effective­ persons. These sessions will address the im­ had continually been rearrested each time his ly control the agency. Congress cannot-and portant matters of retirement planning, coping prison term has been served. His only crime is has done nothing to control the TV A for a with retirement itself, and the role of religious that he has renounced his Soviet citizenship groups in supporting older persons. They will and desires to emigrate from Russia. This also focus on how young people can better courageous individual who continues to stand s An apparent exception to this situation is the understand the elderly. up against the tyranny of his oppressors is a recently hired "nuclear czar." Here, the board is said to have given extraordinary authority to a rec­ The Philadelphia Protestant Home has source of strength and inspiration for Bielaru­ ognized nuclear expert to make any necessary played a very positive role in its community, sians throughout the world, who hope and changes to restore the TVA's nuclear plants to op­ offering its social hall to local groups like the pray for the day when their beloved country eration. But the very fact that the board was forced AARP and the Boy Scouts. may once again join the community of free na­ to bring in a "nuclear czar" indicates that a three· member body is an ineffective management device. I strongly commend the Philadelphia Protes­ tions. The text of the letter to General Secre­ Someone has to be in charge and responsible. tant Home for the fine services it offers its tary Gorbachev follows: 6788 EXTENSIONS OF REMARKS April 8, 1986 MlKHAn. GoRBACJD:V, and Loyalty awards from the Modesto chapter from Southeast Asia," is expected to be re­ General Secretary, Central Committee 0/ the of the Veterans of Foreign Wars. Last year, leased in mid-April. Canadian officials re­ Communist Party USSR, The Kremlin, his service to veterans throughout the State fused to provide any information about the Moscow, RSFSR, USSR. was recognized by the California State As­ report; however, sources familiar with the DEAR SEclu:rARY GoRBACHEV: We, the un­ report provided the Journal with the essen­ dersigned Members of the United States sembly. tial details. Congress, are writing to request your inter­ In addition to his service to our community Canadian scientists found trichothecene cession in the case of Mikhail Kukobaka. and State, Frank has also worked hard to mycotoxins-the same deadly fungi identi­ Since 1970, when he was first confined for serve our country. Last month he retired from fied by the U.S. government and independ­ anti-8oviet slander, Mr. Kukobaka has been the U.S. Naval Reserves after 20 years of ent American scientists-in yellow-rain sam­ rearrested each time that his sentence has dedicated service in the Reserves. ples collected from a 1982 attack site in been served. Eligible for release in October I would like to join with Frank's other friends Thailand. The Canadians also apparently 1984, he was given a new sentence of 7 years in saluting him for all his efforts on behalf of acquired part of a yellow-rain weapon-a detention in a labor camp and 5 years in in­ piece of plastic bag-from the same site. ternal exile. Mr. Kubobaka has renounced veterans throughout California over the last The plastic was covered with high concen­ Soviet citizenship and has exPressed the quarter century. I wish him continued health trations of various trichothecenes and car­ desire to emigrate to a Western country. and happiness in his retirement. ried no pollen grains. As evidenced by the long period of con­ finement, we believe that Mikhail Kuko­ PRIMITIVE EXISTENCE baka has served ample time for the charges BILL KUCEWICZ PINPOINTS On Feb. 19, 1982, at 9:30 a.m., an un­ brought against him and can see no purpose "YELLOW RAIN" EVIDENCE marked, single-engine plane circled the Thai for extending his sentence. He posseses no village of Ban Sa Tong, located about 10 kil­ state secrets and would pose no threat to HON. JIM COURTER ometers west of the Cambodian border. Soviet security. On behalf of many Bielaru­ After five or six circuits, the aircraft sian-Americans concerned about the plight OF NEW JERSEY dropped a yellow substance from a height of of Mr. Kukobaka and in the interest of im­ IN THE HOUSE OF REPRESENTATIVES about 5,000 feet. According to previously proving U.S.-U.S.S.R. relations, we urge you Tuesday, April 8, 1986 published reports, six houses in the south­ to release Mikhail Kukobaka and to allow east sector of the village were "liberally cov­ him to emigrate. Mr. COURTER. Mr. Speaker, one of the ered" with a yellow powder that stuck to Thank you for your consideration of this most tiresome "fool's errands" in United roofs, walls, foliage and ground. matter and we eagerly await your response. States-Soviet relations has been the protract­ The people of Ban Sa Tong live a primi­ Mr. Speaker, the United States has benefrt­ ed search for conclusive evidence that the tive existence. Their houses are raised on ed enormously from the courage and vitality of "yellow rain" chemical weapons samples piles and consist primarily of a single com­ Bielarusian-Americans, who have contributed found in Southeast Asia are not, in fact, bee munal room, largely devoid of furniture, spiritually, economically, and intellectually to feces. In their efforts to absolve the Soviet with one wall open to the outside. Despite these conditions, visitors reported that the the strength of our Nation. It is with pride that Union of any blame for chemical weapons at­ houses and people were clean. The villagers' I join with Bielarusian-Americans in the 11th tacks, several noted scientists have been de­ primary occupation is tending crops in sur­ Congressional District of Illinois which I am manding "smoking gun" evidence before they rounding fields. Immediately following the honored to represent, and Americans of Bie­ will abandon their quaint insect excrement hy­ attack, the shocked inhabitants notified larusian descent throughout the country, who pothesis. Thai authorities. are commemorating the 68th anniversary of But, as the following article from the Wall The incident was most striking at the time the independence of Bielarusia, and I share Street Journal notes, the Canadian Govern­ because no area of Thailand had ever been their hope that one day the people of Biela­ ment may be preparing to produce the most hit before by a yellow-rain attack. All of the rusia can once again enjoy the blessings of previous evidence compiled by the U.S. gov­ damning evidence thus far, linking Soviet ernment involved attacks in Laos-mainly freedom and national self-determination. client states to the conduct of despicable against the primitive H'Mong people-and · chemical weapons "experiments" on the in Cambodia. The U.S. has said that these A TRmUTE TO FRANK H. people of Cambodia and Thailand. Together attacks were conducted by Vietnamese and, MACHADO with numerous eyewitness accounts and inde­ occasionally, Laotian forces. The U.S. has pendent laboratory analyses, the Canadian charged the Soviet Union with supplying HON. TONY COELHO report may finally convince the obstinate the yellow-rain material and providing mili­ skeptics that the Soviet Union is capable of tary advisers to assist in its use. This vio­ OF CALD'ORNIA lates the Biological Weapons Convention of committing atrocities at the same time that it IN THE HOUSE OF REPRESENTATIVES 1972 and the Geneva Protocol of 1925. is excoriating the Reagan administration for Thai authorities sent public-health offi­ Tuesday, April8, 1986 poisoning "the spirit of Geneva." I urge my cials and military experts to investigate the Mr. COELHO. Mr. Speaker, on April 11, colleagues to pay careful attention to the fol­ incident. They found, however, that no 1986, friends and admirers of Mr. Frank H. lowing article. major epidemic had occurred as a result of Machado will gather to honor him on the oc­ [From , Mar. 31, the yellow rain. Absent were the severe 1986] symptoms reported by the H'Mong and casion of his retirement from his position as Cambodians, especially the profuse internal director of the Stanislaus County Veterans YELLOW RAIN CONFIRMED hemorrhaging and agonizing deaths. None Service Office after 25 years of service to the were ill due to the yellow­ this dispute, the Canadian scientists used has taken place; as the federal role dimin­ rain attack, though none had died. Their electroscanning pictures, or photomicro­ ishes, state and local governments have symptoms included mouth and throat sore­ graphs, to look closely at the samples. They gradually assumed greater responsiblllty for ness, increased thirst, stiffness, trembling, found no pollen or feces on the plastic. many domestic policies. cough, shortness of breath, chest pain, They only discovered unusually high con­ The shift in responsibility from the feder­ nausea, itching of the skin, rapid heart beat, centrations of the trichothecenes. The new al government to the states has been accom­ blurred vision, weakness and dizziness. All report adds a typical scientific caveat: Be­ panied by a drop in federal aid to the states of these symptoms are associated with cause the Canadians were given the plastic, and localities. In 1980, federal aid made up a yellow-rain attacks elsewhere in Asia. The they cannot vouch for its authenticity. quarter of all revenues of state and local epidemiologic&l findings were published by Nonetheless, all the other evidence points to governments. It now makes up a fifth. As­ the medical branch of Canada's National the plastic as part of a Soviet-inspired sistance has dropped from 15.5 percent of Defence Headquarters in August 1982. yellow-rain device. the total budget and 3.4 percent of GNP in The team concluded that the "uncommon The plastic also helps to explain another 1980 to 11.2 percent of the total budget and level of illness" in Ban Sa Tong was the running question. In late 1981, Joseph 2.7 percent of GNP in 1985. The heaviest result of no other "possible causal mecha­ Rosen of Rutgers University tested a yellow­ cuts in federal spending in recent years have nism common to all those affected except rain sample for ABC News. Besides finding been among the state and local assistance the yellow substance dropped on the vil­ three types of trichothecenes, he also dis­ programs. The budget proposed by the lage." Without laboratory analysis of the covered a man-made, industrial compound­ President for 1987 would continue this reor­ samples, however, the Canadian team polyethyleneglycol. It is possible that this dering of fedral budget priorities. Federal stopped short of declaring that Ban Sa came from the plastic containing the yellow aid to state and local governments, which Tong had been hit by chemical weapons, rain. has been declining since 1978, could be cut though the report as a whole concluded Canada is not the only country to have even more over the next several years under that chemical-biological weapons "are being tested yellow-rain samples from Ban Sa the new federal deficit reduction plan. used" in Southeast Asia "against unprotect­ Tong. Britain and France have conducted President Reagan came to office promis­ ed troops and civilians with inadequate med­ their own tests, and Thai authorities sent ing to adjust the relationship between the ical support." Moreover, it added, "Most of samples to Japan for analysis. According to federal and other levels of government. In the deaths associated with the use of CW I well-placed sources, all of these tests showed 1982 he proposed a major reordering of re­ BW agents are the result of inadequate or positive results for the mycotoxins, though sponsibility. As part of that plan, the feder­ inappropriate medical care." not one of the governments has ever public­ al government was to swap all responsiblllty The new report on the Ban Sa Tong sam­ ly confirmed the tests or results. Officials at for welfare in exchange for becoming the ples concludes that there was in fact a the U.S. Army's chemical-testing lab in Ab­ main health care provider. The federal gov­ chemical-weapon attack using the same erdeen, Md., wouldn't comment on the Ca­ ernment, which runs Medicare for the elder­ mycotoxins that the U.S. government has nadian report, and refused to say whether ly and disabled, was to take over Medicaid found in Laos and Cambodia the Thai site. were to take over Aid to Families with De­ The Thai samples included three different The Canadian yellow-rain evidence-along pendent Children and the Food types of trichothecenes-T2, HT-2 and with the still-unpublished results from Brit­ Stamp Program. A second part of the plan DAS-which don't naturally form in combi­ ish, French and Japanese laboratories-vin­ would have consolidated more than forty nation. None of the control samples for dicates the U.S. position. Yellow rain is other forms of federal aid to state and local neighboring areas showed any traces of the indeed a Soviet developed and distributed governments and gradually reduced federal relatively rare trichothecenes, and villagers biochemical weapon. The results from Ban aid for them. As that happened, state gov­ in those areas showed no signs of trichothe­ Sa Tong also make ludicrous the theory ernments could either levy their own taxes cene-assoclated illnesses. The Canadian that yellow rain is only bee feces. and continue the programs or let the pro­ report, therefore, rules out the posslblllty grams expire. The plan failed, partly be­ these particular mycotoxins were naturally FEDERALISM cause the states were uneasy about having occurring. They could only come from man­ to assume the welfare burden, and partly made weapons. becaruie the states viewed it as a reduction The environmental samples showed rela­ HON. LEE H. HAMILTON in aid, not as a way to sustain programs. tively low levels of the toxins. This may ex­ OF INDIANA Even though this swap failed, the Presi­ plain why these villagers didn't suffer the IN THE HOUSE OF REPRESENTATIVES dent has had significant impact on the fed­ types of violent deaths seen at other yellow­ eral/state balance of power. The changes rain attack sites. By comparison, high levels Tuesday, April 8, 1986 add up to a large increase in state influence. of trlchothecenes were found on the piece States now have greater discretion to spend of plastic bag. And this has led Canadian re­ Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington Report for Wednesday, money allotted under the new block grant searchers to conclude that the plastic is ac­ setup and a larger role in job training. Less tually part of the cleverly simple weapon April 2, 1986 into the CONGRESSIONAL regulation and administrative oversight for itself. RECORD: many federal domestic programs and Villagers said that the aircraft had FEDERALISM changes in Medicaid have improved states' dropped something that appeared to ex­ Over the years, Hoosiers have often ex­ ablllty to cut and control costs. More signifi­ plode in midair releasing its yellow contents, pressed to me their lack of confidence in the cant is the underlying shift in perception of according to previously undisclosed evidence federal government. They believe that it is what the federal government can do. With in the new report. Among the remnants of badly run, that its policies are poorly imple­ few exceptions, the federal government is the device was the piece of plastic. Canadian mented, that it is mired in bureaucracy, and no longer expected to create programs to experts surmise that the yellow powder was that it intrudes too much into private activi­ correct domestic problems. contained in a plastic container with an ex­ ties. At least since the mid-1970's, Washing­ The role of state governments has been plosive charge that would rip the plastic ton has been sympathetic to these com­ enhanced in several ways. State and local apart and scatter the powder in a big yellow plaints, and has tried to deal with them, officials have become policy innovators in cloud. This would help to explain the nag­ with mixed success, through a wide range of areas formerly dominated by the federal ging question of why no shrapnel has ever proposals to reorganize, reduce and improve government. Workfare programs, in which been found at attack sites. The division of responsiblllty for govern­ quality, affordable health services, setting TEST FINDINGS ing between the federal government and the up community-based alternatives to nursing Back in Ottawa, experts were mindful of states is fundamental to our constitutional homes, encouraging preventive health care, the controversy that yellow rain might be system. The balance of responsiblllty be­ and ensuring that the poor have access to nothing more than pollen or droppings of tween the states and the federal govern­ health services. Many states have instituted Asian honeybees. Harvard biochemist Mat­ ment is constantly evolving. It is not the reforms in their school systems, including thew Meselson and some of his colleagues type of issue that can be resolved once and competency tests and merit pay for teach­ had challenged the U.S. data on yellow rain. for all because it depends on the political ers, tougher graduation requirements, and They said the yellow-rain samples were not and economic trends of the period. In the longer school days. States and local commu­ trichlothecene-laced weapons but rather last decade, after nearly fifty years growth nities are competing aggressively for outside merely bee feces. In an attempt to settle in federal responsiblllty, a transformation investors. States use tax incentives to en- 6790 EXTENSIONS OF REMARKS April 8, 1986 courage corporations to invest in blighted [From the Journal of Commerce, Mar. 25, the filing would "be construed as the filing urban areas, and state-sponsored private 1986] of a false or misleading financial statement corporations are providing investment cap­ BOTH SETS OF UNDERWRITING BOOKS UNDER with intent to deceive, which is against the ital, Virtually every state is seeking new FIRE law." ways to help those with marginal income (By James Nolan) Cigna went ahead and filed the state­ ments with the discounting reports includ­ find homes they can afford. In these and For arcane reasons dating to the 1920s, other domestic policy areas, the states have the commercial insurance industry keeps ed. In mid-March California sent the state­ emerged as the new engines of innovation. two sets of books. ments back to Cigna and ordered that the Overall, I am favorably impressed by the But now, with the industry under pressure offending numbers be stricken from the re­ resurgence of state and local governments. to reform its underwriting practices, both ports. The character and the degree of this resur­ accounting systems are coming under heavy Coincidently, the Securities and Exchange gence varies from state to state, but the fire. Commission signaled discontent with insur­ shift seems to be both important and last­ Public companies report to both the Secu­ ance industry the discounting issues also. rities and Exchange Commission and to The American Institute of CPAs, the gov­ ing. As the President and Congress search erning body for the profession, formed a for ways to reduce the deficit, state and state regulators. However, mutual compa­ nies, owned by their policyholders, report committee this year to study the issues and local officials will be asked to assume a make recommendations. greater role in U.S. domestic policy. As fed­ only to the states. The rationale is that the reports to the G. Michael Crooch, a partner at Arthur eral aid shrinks, state and local govern­ SEC serve the investment interests of stock­ Andersen & Co., one of the nation's largest ments will increasingly have to rely on their holders. Reports to the states are supposed accounting firms, said that "traditionally, own resources. I doubt that the federal gov­ to assure policyholders that companies can insurance companies have been under-re­ ernment will have the fiscal flexibility and will pay claims. served. If you discount, the reserves will be either to take responsibility back from the Evidence is mounting that for myriad rea­ lower still." states or to increase funds to them, at least sons both reporting methods are falling far The problem for the CPAs, Mr. Crooch in the near future. I do have the uneasy short of their goals. said, is to reach common ground with actu­ feeling that many local and state govern­ Recent events show statutory reporting aries, the professionals within the compa­ ments may not have the resources to fill the rules in the states are being applied uneven­ nies who work out the complex formulas for gaps left by federal budget cuts. That means ly and enforcement of the rules is sporadic. establishing reserves. the new federalism must be monitored In Iowa, the insurance commissioner says The gulf separating the two accounting closely to assure that important services are he can't trust accounting reports filed with systems can be seen specifically in the SEC not dropped. I also expect that local govern­ his office, particularly by companies in reports for 1984. The Travelers Insurance ments will increasingly look to their state questionable financial health. Co., the nation's third largest public under­ capitals for assistance as the federal govern­ In California, legislation is pending to call writer, told the SEC it was discounting more ment pulls back in domestic areas. on independent third parties to certify the than $700 millon reserves, mostly for work­ At every stage of our political and eco­ statutory accounting reports. Regulators ers compensation. want more intense scrutiny to protect pol­ Questioned later, Travelers said it dutiful­ nomic development, the question of the re­ icyholders. lation of the states to the federal govern­ ly reported the transaction in its state re­ Early this month, the National Associa­ porting. But the $700 million bookkeeping ment will be addressed anew. For now, state tion of Insurance Commissioners denounced and local governments are taking on added entry did not appear in summaries of the lenient state accounting techniques estab­ statutory accounting reports published by duties and importance. lished by their predecessors. the A.M. Best Co., and industry rating and A pervasive discontent with statutory in­ reporting service. surance industry bookkeeping has been sim­ A Best spokesman said the clerks who go mering for two years. The issue came to a over the voluminous state accounting re­ boil in January when Cigna Corp., the na­ ports and type them into computers do not INSURANCE COMPANY tion's second-largest property /casualty in­ always pick up all of the accounting entries. ACCOUNTING QUESTIONED surance company, boldly announced an enormous accounting change. [From the Journal of Commerce, Mar. 25, In a press release, Cigna said it was adding 1986] $1.2 billion to its reserve account for the HISTORY OF ACCOUNTING IN INSURANCE HON. JAMES J. FLORIO payment of future claims. ANALYZED OF NEW JERSEY What Cigna didn't say was that it was put­ ting only $600 million in cash into the fund. Double entry bookkeeping was perfected IN THE HOUSE OF REPRESENTATIVES The balance would come from interest in Venice about 500 years ago. income over the years on the cash. That is The basic idea is that every transaction Tuesday, April 8, 1986 to say, the reserves would be discounted. has two sides, a debit and a credit. When Mr. FLORIO. Mr. Speaker, I recently insert­ State insurance regulators permit dis­ tens of thousands of transactions are sepa­ counting only for workers compensation re­ rated this way, there is a marvelous check ed in the RECORD an article regarding ques­ on the honesty of the accounting system. tions raised about the manner in which insur­ serves. With compensation payments, the pay-out stream for the future can be calcu­ It's called balancing the books. ance company reserves are reported. I am lated with a great deal of precision. But quicker than you can say "green eye here inserting three subsequent articles from For general commercial liability, discount­ shade," skillful accountants learned to econ­ the Journal of Commerce on this subject and ing on a future that is highly uncertain isn't omize with the truth and make the books on insurance industry accounting in general. accepted. The reserves must be put aside say other things. These articles report on the doubts of regula­ dollar for dollar. Thus, the independent audit was devised. Peter W. Gillies, Connecticut insurance An outsider stands between buyer and seller tors and accounting experts about current in­ commissioner, uncovered Cigna's discount­ and attests to the accuracy of the books. dustry practices. ing when he questioned the firm by tele­ In the insurance industry, the history of Mr. Speaker, with the country now in the phone. His discovery came in the last week accounting has taken strange turns. midst of a crisis in the availability of liability in­ in February, the eve of the March 1 dead­ There has been state regulatory account­ surance, this somewhat technical issue takes line for the insurance industry to file finan­ ing for all insurance companies for some 60 on great significance. Responsible officials cial statements with the state regulators. years. But over the years the bookkeeping In Connecticut and Pennsylvania, Cigna's paths have divided for publicly held stock cannot begin to deal with the insurance crisis state of domicile, regulators said Cigna did companies and mutual companies owned by if they cannot get accurate data. For example, indeed file statements with the discounting the policyholders. if we rely on incomplete data, we could be hit entries on the books. After the stock market crash of 1929, almost without warning by a wave of insur­ At the moment, both states are conferring President Roosevelt got Congress to pass ance company insolvencies leaving unpaid and a decision on accepting the statements the Securities and Exchange Act in 1933, es­ claims and widespread economic damage in is expected momentarily. tablishing the Securities and Exchange In California, however, Bruce Bunner, in­ Commission. The basic charge to the SEC its wake. surance comm.Jssoner, flatly warned Cigna was to oversee the accounts of public stock I hope these articles will help inform my col­ and any other company of like mind in mid­ companies, including some in insurance. leagues about this important issue-an issue February that if they submitted financial Now, public insurance companies keep with very serious implications. statements containing discounted reserves, books as ordered by the SEC. A third party April 8, 1986 EXTENSIONS OF REMARKS 6791 audit by independent certified public ac­ " It appears," Mr. Bunner said, "that a fairness was also reflected in their feelings on countants is mandated. growing number of property and casualty Social Security and Medicaire. Fifty-fiVe per­ But, on the so-called convention, or regu­ insurers are reporting unpaid losses and loss latory financial statement filed by insurance adjustment expenses on a dis­ cent of the respondents said all Government companies with the states, there is virtually counted basis in their statutory financial entitlement programs' cost of living adjust­ no independent third party analysis of the statements." ments should be frozen, rather than just those books. The accounting reports are submit­ He said that such discounting of loss re­ of Federal retirees' pensions. And almost two­ ted by company officers, with the word of a serves "overstates statutory net worth." thirds favored Medicare eligibility based on notary public that they are, indeed, the offi­ Mr. Bunner concluded that the filing of fi­ need as well as age. cers. nancial statements that included discounted My constitutents even expressed their con­ State regulatory examiners go over the reserves for anything other than workers books, but as a New Jersey insurance com­ compensation claims "may be construed as cern for rising deficits in their attitudes on for­ missioner once said, "we are outmanned and filing a false or misleading statutory finan­ eign affairs. They chose our foreign trade defi­ outgunned by the companies." cial statement with intent to deceive, which cit as Congress' top foreign policy priority. In a few states, CPAs are brought into the is against the law." Mr. Speaker, like many of my colleagues, I picture. They add separate comments to the In another pressing concern, the commis­ view the results of this annual survey as one statutory statements. But the CPAs do not sioners began work in San Francisco on an of the many tools that I will use to ensure ac­ feel easy about it by any means. unforseen problem with a new claims-made curate representation of my constituents. It's The American Institute of CPAs has form adopted by the industry. begun a special study to determine what is The new Commercial General Liability my responsibility to speak for the Third District good and bad about how the insurance in­ form specifies conditions for a so-called in this Chamber. In that regard, today I submit dustry actuaries set up reserves to pay "long tail" form of coverage, that protects a the complete results of my 1986 general legis­ claims, the largest single item on the liabil­ policyholder against claims that arise after lative questionnaire. ity side of the balance sheet. the policy period ends. 1986 QUESTIONNAIRE The " tail" to be purchased by a corpora­ [From the Journal of Commerce, Mar. 14, tion may run up to five years. Total participants: 2,456. 1986] But now in court cases, the question has 1. This year will be dominated by "deficit been raised that if the insurer that sold the reductions." Such action should be achieved PROPERTY/CASUALTY RESERVE DISCOUNTING long-tail coverage goes insolvent, will there­ through: HIT sponsibility fall to the state guaranty fund to pay claims? An amendment to the NAIC State insurance regulators "are very un­ model law government guaranty funds is ex­ Number Percent happy" with the prospects that propertyI pected to be developed. casualty insurance companies "are discount­ Spending cuts ...... 1638 66.7 ing reserves all over the lot," said John E. Tax increases...... 87 3.5 Washburn, Illinois director of insurance. THE VOICE OF WISCONSIN'S Combination ...... 731 29.7 Mr. Washburn said the discounting issue THffiD DISTRICT was of major concern at a number of com­ 2. If cuts are to be made, which areas mittee meetings during the Western Zone HON. STEVE GUNDERSON should be exempted from cuts: meeting of the National Association of In­ surance Commissioners in San Francisco OF WISCONSIN this week. IN THE HOUSE OF REPRESENTATIVES The discounting of reserves argument was Tuesday, April 8, 1986 Number Percent thrust to the fore last month when it was revealed that the Cigna Corp. the nation's Mr. GUNDERSON. Mr. Speaker, few ses­ low-income programs ...... 759 30.9 sions in recent history have been as crucial as Agriculture .•...... •...... 626 25.5 second largest property/casualty insurer, Assistance to local governments ...... 317 12.9 was adding $1.2 billion to its reserve account this one in determining America's future. With Veterans programs ...... 594 24.2 for an array of commercial lines of insur­ the passage of the Gramm-Rudman-Hollings Education ...... 527 21.4 ance. deficit reduction legislation, Congress is now 363 14.8 ~:secitizen . ~ograiiiS·:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 761 31.0 Cigna said the $1.2 billion was only half in mandated to finally put to death a legacy of fi­ No programs should be exempt...... 1,020 41.5 cash. The other $600 million of reserves to nancial carelessness which has left our Nation pay future claims would come from interest income on the cash. with hundreds of billions of dollars in yearly 3. While the Farm Bill has been enacted, After the NAIC meeting Mr. Washburn deficits. It's quite clear, though, that this crisis government will still play a major role in ag­ said that the regulators from the 50 states can be solved only with the cooperation and riculture through implementation of the assembled in San Francisco were "very ap­ shared effort of all Americans. bill. The federal priority in 1986 should prehensive already about the quality of the I'm proud to say, Mr. Speaker, that the focus on: industry reserves. We must determine how people of Wisconsin's Third District have widespread the practice is. We need a full broadcast their commitment to the discipline scale look at this because of the obvious necessary to end $200 billion annual deficits. effect it has on the reserves." Number Percent Because all of the state departments are They have clearly demonstrated their willing­ ness to take their eyes off their own special Regulating imports...... 1,371 55.8 swamped at the moment with financial Changing the Tax Code ...... 1,068 43.5 statements from hundreds of companies, it interests and focus instead on what's neces­ New ag technology for the family farm ...... 430 17.5 can not be determined which, in particular, sary for the continued prosperity of our Credit assistance for needy farmers ...... 719 29.3 are discounting, Mr. Washburn said. Nation. "But in our shop, we are devoting all of Earlier this year, I mailed my legislative 4. Recent actions have seen federal retir­ our attention to the problem." he said. questionnaire to all Third District residents, ees lose their cost of living adjustment The volume of the paper work is huge and giving them another opportunity to express for 1986. At the same time, Social most state departments are grossly under­ their opinions on many of the major issues of Security recipients received theirs. To be staffed. fair, in the future: In New York, for example, one of the this Congress. better-staffed departments, each examiner Those who responded spoke loud and clear must read 60 financial statements, each of on the urgency to reduce the deficit. Over 62 which in some cases can run to several hun­ percent-more than four times those who se­ Number Percent dred pages. lected any other issue-named deficit reduc­ Cigna made its announcement one month tion as Congress' top priority for this session. All COlA's should be frozen ...... 1,280 54.4 before the March 1 deadline for companies None should be frozen ...... 445 18.9 What's more, a solid two-thirds favored deficit Maintain present policy...... 629 26.7 to file their statutory accounting data with reduction through spending cuts, rather than the state regulators. As events unfolded after the Cigna news, tax increases. 5. With the recent increase in federal out­ Bruce Bunner, California insurance commis­ Of those responding, a majority wanted lays for Medicare, some have suggested eli­ sioner, sent a blistering warning to all com­ these cuts carried out in all Government pro­ gibility for Medicare should be based on fi­ panies licensed to do business in California. grams, with no exemptions. This concern for nancial need, not just age. 6792 EXTENSIONS OF REMARKS April 8, 1986 CONGRESSIONAL SALUTE TO the most flagrant examples of this glaring in­ Number Percent THOMAS P. RALEY consistency. I have made a hasty search of various texts which preach the advantages of Agree ...... 1,583 65.8 Disaglee...... 822 34.2 HON. ROBERT T. MATSUI the free market. In none of them did I discov­ OF CALIFORNIA er chapters-or even footnotes-which as­ serted that the virtues of the market do not 6. Economic development is of vital impor­ IN THE HOUSE OF REPRESENTATIVES apply when commodity prices are going down. tance to western Wisconsin. The govern­ Tuesday, April8, 1986 ment can best assist in this development by: To argue, that the free market must be al­ Mr. MATSUI. Mr. Speaker, I would like to lowed to set energy prices, and then to call call my colleagues' attention to a very special for various forms of government intervention businessman and community leader will be when that free market behaves in ways that Number Percent honored on April 7, 1986 for his many years the oil producers find inconvenient, is hypocri­ . Reducing defiCits and interest rates...... 1,676 68 2 of civic involvement and contributions with the sy of the most basic sort. Jlrov!d!ng g sun-Star, Mar. 10, ing legislative proposals, drafting committee 19861 documents, legislation and presentation of The attack on Libyan missile sites-no income security issues to committee mem­ matter how justified they may appear in BURKE: FoRMER MERCEDIAN IN POLITICAL light of Qudhafi support for terrorism and ARENA bers. From 1985-86, she served as deputy chief other aggressive actions-raises serious Former Mercedian Sheila P. Burke, questions and concerns, especially in rela­ named chief of staff for Senate Majority of staff for the office of the Senate Majori­ tion to the War Powers Resolution. Leader Robert J. Dole the world." out 1.25 percent of the reduction we will ac­ When the chairman of the House Foreign Once again in 1986, administration spokes­ complish through the whole-herd buyout pro­ Affairs Committee, Rep. Dante Fascell . complained last week that the admin­ taxpayers $2 million annually simply to buy up istration should have consulted with Con­ seeking political credit for the decision to gress under the War Powers Act over the use force against a tyrant. Early in the week the dairy products created by the milk it sup­ conflict in the Gulf of Sidra, he received high officials were quick to praise their plants. little support from his congressional col­ president for being aware in advance that Now, what makes a bad situation worse is leagues. The president's provocation of sending the Navy into the gulf could cause a that-believe it or not-Masstock has re­ Libyan strongman Qudhafi was in its early confrontation. Later in a letter to Congress ceived $4.5 million in financing through low in­ stages a popular move that received strong explaining why prior notice was not re­ terest, tax-exempt industrial development bipartisan support. Reference to the War quired, the operation took on the benign bonds [lOB's]. Not only do we have foreign in­ Powers Resolution must have seemed to qualities of a "peaceful exercise" and part many a throwback to Vietnam-era concerns. vestors building huge operations during a of a "global freedom of navigation program period of surplus production, but we're actual­ But Fascell was correct in pressing the . . . on international waters." legal case. The resolution created a proce­ ly giving them Federal financial encourage­ dure to bring Congress into the fateful deci­ Congress' reaction to the current Gulf of ment to make those investments. sions involving war and peace. If the admin­ Sidra crisis is sure to be watched by admin­ In response to this situation, I am today in­ istration felt no need to consult Congress in istration lawyers seeking precedents to cir­ troducing two bills to limit the use of lOB's cumvent the War Powers Resolution. Per­ the case of a popular engagement, can we and the benefits of Federal farm programs to expect any more when troops are committed haps Fascell's colleagues were intimidated by the initial popularity of the president's foreign interests involved in American farm in more controversial circumstances? Per­ operations. Senator KASTEN is introducing the haps Fascell's legal position will be more ap­ action. Whatever the cause, Congress pealing in the situation evolving on the cannot now afford to acquiesce in a clear same legislation in the other body today as Honduras-Nicaragua border. circumvention of its legal prerogative. well. April 8, 1986 EXTENSIONS OF REMARKS 6795 The first bill would simply eliminate the Fed­ REAGAN NOT SERIOUS ABOUT the Soviet Union to reduce the number of eral tax-exempt status of any lOB used to fi­ ARMS CONTROL nuclear weapons. President Reagan has re­ nance the purchase, construction, or improve­ sumed weapons testing in Nevada and re­ jected the Soviet proposal for a comprehen­ ment of farm property by foreign persons. HON. BARNEY FRANK sive nuclear test ban. He believes that fur­ The second bill would prohibit foreign per­ OF MASSACHUSETTS ther testing will enhance America's relative sons, except a foreign person who is operat­ IN THE HOUSE OF REPRESENTATIVES military strength. ing a single small- or mid-sized family farm, Tuesday, April&, 1986 The new Soviet leadership headed by Mik­ from receiving any benefits under USDA crop hail Gorbachev wants to stabilize the mili­ Mr. FRANK. Mr. Speaker, it has sadly insurance, FmHA loan, storage facility, disas­ tary competition at existing levels. Since the become apparent in the last several months gross national product of the Soviet Union ter payment, price support or other Commodi­ that the Reagan administration has no serious is little more than half that of the United ty Credit Corporation programs. interest in arms control or arms reduction. States and since the technological gap be­ Obviously, at the Federal level we cannot One of the areas in which agreement to con­ tween the two econoinies is widening. Gor­ stop foreign interests from engaging in farm trol nuclear arms is likeliest is that of a cessa­ bachev and his associates would presumably operations in any particular State. However, tion of nuclear tests. A verifiable agreement to like to cut back on military spending and we can eliminate any Federal incentive that shift resources to more productive uses. stop all nuclear testing between the United The Reagan administration sees this as an might encourage such foreign investments. States and the Soviet Union would be an opportunity not to slow down and possibly The bills I am introducing today are intend­ enormous step on behalf of a more peaceful halt the arms race but to "close the gap" be­ ed to do just that and I urge my colleagues to and stable world. An end to testing would give tween ourselves and the Russians. There is give them their careful consideration. some assurance to people that newer and no doubt that the Soviet Union by a sus­ more terrible-and potentially more destabiliz­ tained drive has achieved what can be seen ing-weapons were not being developed. as military superiority over the United In recent weeks, the Soviet Union has been States. It has more long-range missiles on far more forthcoming on this issue than it has land and in submarines, and more warheads. been in a long time. The Soviets have been In terms of medium-range missiles and war­ CONGRESSIONAL SALUTE TO heads aimed at Western Europe, it has more D.W. McKENZIE observing a moratorium on testing, and have than the British and French combined, plus been far more willing than previously to dis­ US cruise and Pershing missiles. cuss the critical issue of verification. We With regard to conventional forces, the cannot be sure that the Soviets are interested Russians outnumber the North Atlantic HON. ROBERT T. MATSUI in signing a fully verifiable treaty to ban all nu­ Treaty Organization in Western Europe, deploy a sizable army along the border with OF CALIFORNIA clear tests, and, tragically, because of the ap­ parent lack of interest in the Reagan adminis­ China, and have several divisions fighting a IN THE HOUSE OF REPRESENTATIVES tration in achieving this goal, we may never nasty little war in Afghanistan. know what the Soviets are willing to agree to. It is equally true, however, that this mili­ Tuesday, April&, 1986 tary superiority is not sufficiently great to President Reagan and his national security Mr. MATSUI. Mr. Speaker, I would like to guarantee the Soviets victory in a major advisors have become more and more clearly war. A nuclear war remains an adventure in call to the attention of the U.S. House of Rep­ hostile to the notion of negotiating an end to resentatives a very special public servant who mutual suicide. nuclear tests. Large majorities in both Houses When there is an arms race under way, has performed his most important job with of Congress have urged the administration to military planners on both sides can always dedication and success over a period of get on with the issue of nuclear test bans. But see the need for testing new weapons. The nearly three decades. this administration continues to refuse to sup­ United States, for example, is now working On March 27, 1986, friends, family mem­ port the work of its Republican predecessors on a new missile to be launched from sub­ bers, elected officials and his working associ­ in the area of nuclear tests. The President will marines that will be powerful enough and ates will honor Mr. Dee W. McKenzie, Public accurate enough to reach every land-based not agree to ratification of treaties already missile site in the whole of the Soviet Works Director for Sacramento County, for his agreed to, and he will make no serious effort Union. If work proceeds on the Strategic many years of outstanding service to the to negotiate a comprehensive test ban. Defense Initiative ("star wars") project, this people of his community. It is official policy of this Government to country Inight eventually have a defensive Mr. McKenzie is retiring from his position oppose nuclear proliferation but a government system strong enough to blunt any Soviet with Sacramento County without much fanfare which insists on continuing nuclear testing, counterattack. or notice, but those of us who know how im­ and refuses to explore the seriousness of a Both the new submarine-launched missile Soviet offer of a ban all tests, has little per­ and "star wars" are immensely attractive if portant our roads, streets and highway sys­ one assumes, as Inilitary planners tend to tems are feel a very personal sense of grati­ suasive force in trying to lead others into a do, that a major war is inevitable. A halt to tude to him for his tireless efforts in this im­ nonnuclear commitment. testing new offensive weapons and new de­ portant area of critical infrastructure develop­ William V. Shannon, former American Am­ fensive systems makes sense only if one as­ ment and maintenance. During his tenure with bassador to Ireland, is a very thoughful and in­ sumes that a nuclear war would be an un­ Sacramento County, Mr. McKenzie was largely dependent analyst of American foreign policy. imaginable catastrophe and that it is the responsible for the construction of three He has by no means been uniformly critical of first duty of statesmen to try to diininish the President, and indeed, in his recent article the possibility of its occurring. bridges and road systems across the Ameri­ published in the Boston Globe headlined "An Although President Reagan unquestion­ can River that tie important segments and Opportunity for Arms Control, but the Presi­ ably and sincerely thinks of himself as a suburbs of the metropolitan community to­ dent is Not Listening," he makes statements man of peace, it is not at all clear that he gether through a coordinated transportation has thought through the implications of nu­ partially supportive of the star wars program clear warfare. Unlike all of his post-World network. with which I disagree. There are other state­ Not surprisingly, Mr. McKenzie also is the War II predecessors, he has consistently ments in there with which I and others might given arms control a low priority. He has op­ person most responsible for bringing Sacra­ take issue, but the central point of Mr. Shan­ posed every arms-control agreement begin­ mento County out of the dark ages of sewer non's article is a telling and undeniable one: ning with President Kennedy's Limited Nu­ disposal by leading efforts to finance and con­ President Reagan does not appear to be seri­ clear Test Ban Treaty in 1963 and including struct a regional wastewater treatment plant. ously interested in arms reduction. President Nixon's Antiballistic Missile Mr. Speaker, on behalf of the people of I ask that Mr. Shannon's article be printed Treaty and the Strategic Arms Limitation Sacramento, I would like to take this opportu­ here. Treaty in 1972 and President Carter's SALT II in 1979. nity to personally thank Mr. McKenzie for his AN OPPORTUNITY FOR .ARMs CONTROL, BUT Reagan has been obsessed with notions of many years of dedicated service to our com­ THE PRESIDENT Is NOT LISTENING American military weakness and of Soviet munity and extend my personal best wishes to cheating. Soviet strength, and Soviet aggres­ him and his family for a very happy and suc­ The prospects are poor for a significant sion. Only the other day he was recalling in cessful retirement. agreement between the United States and an interview American military maneuvers 6796 EXTENSIONS OF REMARKS April 8, 1986 in 1941 when some soldiers were using The United States is so vast, that we often what skeptical of the degree of commit­ wooden sticks for lack of sufficient rifles. forget that the countries in Central America ment, however. The United States' stand in If the details of on-site inspections could are sovereign nations because of their prox­ international affairs is not necessarily a be worked out, a comprehensive ban on all imity to one another. To us geographically, longlasting policy. nuclear testing could dramatically slow the they seem similar to our states. Foreign policy in regards to their other arms race and be a long step toward a more COSTA RICA neighbors is good. Panama, for instance, has stable peace, it would be another great gain a national government with no desire to if both sides reaffirmed the ABM treaty and Costa Rica is a small, agricultural country expand so there are good relations there. banned antisatelllte weapons in outer space. of 2.5 million people. They are a democracy Also, there are good, strong relations with Except for Edward Teller and the coterte of and important ally of the United States. Na­ other Central America countries, especially, young scientists gathered around him at the tional security, foreign policy and economic the three who have had elections, Guatema­ Livermore Radiation Laboratory in Califor­ policies are prime topics of discussion in this country. la, Honduras, and El Salvador. nia, physicists are overwhelming of the The Catholic Church in Costa Rica is free opinion that defensive systems in space PRESIDENTIAL ELECTIONS and uncensored. Archbishop Ramon Ar­ would confer no lasting advantage that the At the time of our visit, the presidential rietta spoke to us one evening. His com­ other superpower could not overcome. election was two weeks away. The enthusi­ ments on the coming election were that the The chief value of "star wars" is that it asm of the people in the campaigns was church tells the people that we are going to has made the Soviet leaders more amenable marvelous. Children were included, giving elect many people and to be sure to choose to discussing arms control. If "star wars" away pamphlets and flags. According to the the best. were sacrificed now in exchange for a Soviet Editor of La Nacion, Eduardo Ulibarri, there NICARAGUA agreement to scale down the number of nu­ was not a major issue in this campaign as clear warheads on longrange missiles and the two parties had a high degree of consen­ Nicaragua has now become the country of bombers from about 10,000 on each side of sus. Corruption had become a minor issue, the "haves" and th'e "have-nots". The about 1,000, the savings in money and the with charges of different kinds. "haves" are now the Sandinistas, who have gain in mutual confidence and stability There was a consensus between the par­ effectively extended their system of con­ would be enormous. But this will not ties that an economic policy is vital. Costa trols to exclude the "have-nots" who com­ happen. Rica has a debt of four billion dollars. Ac­ prise those who do not embrace the party In President Reagan, this country has a cording to ffiibarri, the government previ­ line 100%. The problems are rife, the blame leader who hears the trumpet call of the ously thought that it was cheaper to import is easy to place-always the United States. cavalry and dreams of victory. than produce, and to pay for the imports, The Sandinista flag is displayed beside the credit was obtained and then Costa Rica National flag of Nicaragua. The Sandinista could not pay the credit. party army has effectively become the na­ RETURN TRIP TO CENTRAL tional army. The spy system, or the CDS AMERICA CHA!IBER OF COMMERCE block system, has systematically put every­ The Chamber of Commerce in Costa Rica one in reach of the Nine Comandantes. is now 70 years old. The Chamber President, MISKITO, SUKO AND RAliA INDIANS HON. VIN WEBER Armando Guarida, listed their objectives, OF MINNESOTA The Miskito Indians know all too well the "First in our minds is the interest of our results of opposing the controls of the San­ IN THE HOUSE OF REPRESENTATIVES country. We defend private enterprise. dinistas. After Somoza was ejected, the Mis­ Tuesday, April 8, 1986 There is no liberty or democracy without private enterprise." They are trying to kito Indians were willing to work with the Mr. WEBER. Mr. Speaker, one of my con­ Sandinistas for a better Nicaragua. Too late change the tax codes to encourage private they realized the cost. Their automony was stituents, Mrs. Linda Westrom, recently trav­ investments. Unfortunately, they cannot ignored, their culture was ignored, their eled to Central America a second time to see change their geographical location. As livelihood was ignored, they were persecut­ the changes occurring in Nicaragua, El Salva­ Leonard Ferris of the Chamber told us, ed for their religious beliefs, their claims to dor, and Costa Rica since her trip in 1984. "North Americans are geographically igno­ rant. They come down here, interested in in­ their land were ignored. At first, they fled As we continue to prepare ourselves for an­ vesting, but when they realize that Nicara­ their land, but then they returned to fight other vote on aiding the Nicaraguan demo­ gua is right next door, they leave on the back, this time with bullets. cratic resistance. I urge my colleagues to read next plane and take their money with Now, even though the Sandinistas have Mrs. Westrom's report. Her first-hand report publicly stated their government policy was them.'' a mistake, Miskito Indians question the va­ reiterates the importance of these countries to An additional burden on their economic lidity of the Sandinistas' statements. In vis­ the future of her people and to the United stability is the large number of refugees flooding in from Nicaragua. The refugees iting with two Miskito Indians they ques­ States. The future lies in our support of efforts tioned, "If they admit they were in error, to ensure that these people retain their right are willing to work, but there are not enough jobs available for both Costa Ricans why are they still committing these atroc­ to basic civil liberties. and refugees. ities against us? Why are they still persecut­ The report follows: ing us for our religious beliefs? Why did NATIONAL SECURITY REPORT ON CENTRAL AMERICAN TRIP, COSTA they promise to accept our claims to our RICA, NICARAGUA, ANDEL SALVADOR, JANU­ Foreign policy and national security are land, and then deny them the next day? ARY 18-28, 1986 linked together, and the major cause for Why do they still take our homes and or alarm is Nicaragua. Costa Rica did assist the businesses?" Sandinistas to come to power, and Costa One of our group asked if he could get to PREFACE Rica still carries a balance of 100 million the east side of Nicaragua, where the Mis­ In November 1984, I visited the countries dollars which the Sandinistas owe them. kito, Rama and Sumo Indians live. Accord­ of Mexico, El Salvador and Nicaragua. This Because Costa Rica has no standing army, ing to the Miskito Indians we spoke to, he was with a group sponsored by the Augs­ they must depend on their civil guards, would have to come across the sea. Later, in burg College Center for Global Service and about 4500, and their rural guards, about visiting with a journalist from La Barricada, Education. It was a trip purported to show 3500. Thus, the massive buildup of men, ar­ the Sandinista's party-line newspaper, she us the root causes of poverty and injustice. maments and air power in Nicaragua is ex­ told us of a plane which goes from Managua What it proved to be was a liberal, biased ceedingly ominous. to the east side. But, permission must first message telling us that the root causes of Foreign policy as linked to the United be obtained from the Ministry of Interior, poverty and injustice was the "evil, capital­ States is good, Ulibarri told us. "We have the plane holds only 30 people, goes once a ist United States." Another participant, similar values, interest, and political values. week, and preference is given to people who Jane Otten of Big Fork, Montana, and I Here, it is unpopular to be against the live on the East side. wrote a report on our findings of this trip, United States.'' In addition, he said, "We do The Miskito Indians and also a man from WhiCh W8S printed in the CONGRESSIONAL not see pressure from the United States in the FDN whom we spoke to, asked for our RBcoRD on April 16, 1985. foreign policy A bulletin issued from the Catholic tions on class extraction, political and ideo­ revolutionary and did not understand the Church was seized on the grounds it was logical background, if the person fought full depth of the Revolution." hostile to the Sandinistas. To justify seizing against Somoza, and who with and why or Propaganda of the Sandinistas says that this bulletin, the Sandinistas changed arti­ why not. the Contras consist of former National cles, re-printed it on church letter-head The national debt of Nicaragua now Guardsmen who are fighting to return to paper, and then seized it. stands at 6 billion dollars, which does not in­ the old days under Somoza. In actuality, in According to the journalist at La Barra­ clude the military debt. Contrary to the the Contras, there are 13 National Guards­ cada, they also do not like the censorship. propaganda of the Sandinistas, the economy men and these held a rank lower than cap­ "However", she said, "it is necessary, be­ was deteriorating long before the contra ac­ tain. In addition there are 53 MDs and there cause we are at war and have political foes, tivities began taking a toll. are 43 former Sandinistas, according to a who are always pretending to attack. Every­ Esso and Shell signs are still seen, and spokesman from the FDN. one should be responsible for censorship so Nicaragua still can buy from these compa­ The Sandinistas point to their "accom­ as not to cause chaos. Those who transgress nies. However, one man said. "these compa­ plishments" in the decrease in infant mor­ should be fined or closed. This is not the nies are very business like" -in other words, tality rates, of being named a model govern­ way it is now, but that is what we want. The they expect to be paid. ment in health care by WHO. irresponsibility of La Prensa is affecting ev­ Several members of COSEP signed and The literacy campaign boasts that now erybody and the freedom of the press. sent a critique of the economic system people can sign their name and read up to a People need accurate information, but La­ under the Sandinistas to the Nine Comman­ 6th grade level. When asked about the text­ Prensa is only provoking unrest and upheav­ dantes in October of 1981. For their efforts, books and their content, such as: 2 grenades al. As an example, La Prensa wrote about some were put in jail for up to seven plus 2 grenades equals 4 grenades, the reply the price of sugar, and that it would be ra­ months, and others managed to leave the was: "Education is not neutral. Look at tioned. So, people went out and bought it, to country just ahead of the Sandinista sol­ these books for yourseU." But to see them, hoard it, and the price went up. Barricada diers. . we would have to go to the Nicaraguan Em­ also wrote about it, but with information to FREEDOM OF RELIGION bassy in Washington, D.C. get a better system. We explained that the Freedom of religion is almost non-existent When questioned about the huge national cane fields are lacking for workers and that now in Nicaragua. The Sandlnistas state debt, the human rights violations, the reply we need to have more workers to get more that they have no official religion. They of the Sandlnistas was to point to other sugar. Where are the workers? They are at insist that God does not exist. Oddly countries who had larger debts and more war, out fighting." enough, they also insist that God is against human rights violations. RATIONING the Revolution. Thus, they have a standard FUTURE FOR PEOPLE It is now illegal to speak of scarcities, reply for all situations. Repeatedly we were told by Nicaraguan which also include butter, milk, and meat. Although Nicaragua is predominantly people that they, too, fought against Food is rationed and each person gets 4 oz. Catholic, there are also Protestant denomi­ Somoza. They, too, gave the Sandinistas a of rice and 1 lb. of beans. Clothing is also ra­ nations who have been repeatedly har­ chance to prove that as they had been good tioned and each person gets 2 shirts, 2 pairs rassed. Campus Crusade, Child Evangelism revolutionaries, they could govern well. But of pants, and 1 pair of underpants in 6 Fellowship, the Nicaraguan Bible Society. now they realize that the Marxist-Leninist months. A ration card is received for attend­ Assembly of God are among these. Jimmy line had been from the beginning. Now they ance at block meetings. Water is also ra­ Hassan of Campus Crusade for Christ re­ recognize that the Sandlnistas have formed tioned now. The water is turned off two ported in a recent article that the Sandi­ a totalitarian government. "Other people in days a week, from 7 a.m. to 10 p.m. nista authorities told him, "The problem is South America talk about us and we don't Personal rights are non-existent if you are that you preach to young people about have the right to talk about ourselves,'' they a have-not in Ncaragua. The private people Jesus Christ, and because of that, they sepa­ told us. that we spoke to in Nicaragua. heads of non­ rate themselves from Marxism. And we will No one wanted to go back to Somoza's dic­ Sandinista unions, professional people, all never permit this in Nicaragua." This was tatorship, or even make comparisons. But mentioned the lack of habeus corpus. Most borne out by a billboard in Managua which many felt that those days were not as op­ said that they, too, had been in Sandinista proclaimed that God is against the Revolu­ pressive, or devoid of human rights as now. jails. They were all aware that at any time tion. Fear makes it difficult to live and work, we of the day or night, they could again be There are Catholic priests who claim to were told. Some regretfully admitted having picked up by the Sandinista soldiers, their have no problems with the Sandinistas, who doubts about trusting their own family businesses confiscated, given a number in­ have not been harrassed, or censored. members. stead of a name and thrown into jail. According to Msgr. Carballo, there are 320 In . one man told us, he who priests in Nicaragua and 15 are for the San­ does not work does not eat or have a place INFLATION AND BCONOKY dlnistas. In addition, there are priests in to live. But, under Communism, if you do The economy of Nicaragua is reflected by Nicaragua who are not officially registered not obey, you do not eat or have a place to the inflation and is a major problem for the with the Catholic Church of Nicaragua. live. people. At the airport, travelers must ex­ One recent mass, organized by the Sandi­ change $60 into cordobas, with the rate of nistas, paid homage to and used the photos BL SALVADOR exchange at 28 cordobas to $1.00. At the of guerrilla leaders who had died and were El Salvador, also, has a history of juntas, Intercontinental Hotel, where we stayed, now proclaimed as heroes. The Columbian coups and violence, and the last revolution the exchange rate was 750 cordobas-to $1.00. terrorists who assassinated the 12 magis- was in 1979. Since that time, there has been 6798 EXTENSIONS OF REMARKS April 8, 1986 an effort to stabilize the country by If Salvadoran soldiers are involved in the Red Cross and the UN, and denomina­ strengthening the economy, by free elec­ atrocities, they are discharged from the tional church groups. The private church tions, and by respecting human rights. army and then tried by a civilian court. groups are of the few teaching the people a Although they have made progress, they Interestingly enough, the guerrillas will trade to enable them to be self supporting. do have problems, and complex problems. not allow the Human Rights Commission to The problems surfacing in these camps investigate atrocities committed by guerril­ are many. Although these people receive AGRARIAN REFORM las. only the most basic needs, there is a grow­ The Agrarian Reform which took the land Progress has been made in human rights. ing dependency on these handouts. Famllies from the large land-owners and gave it to A small thing, but important, is that police­ have been disrupted, and fathers are not the peasants is still in the first phase, the men now wear visible ID numbers. there to give families stability. There is de­ coop phase. The smallest acreage taken over FREEDOM OF SPEECH linquency, prostitution and drug and alco­ by the government was 40 hectares al­ Freedom of the press is alive and well in hol abuse. And, because the economy is though most acreages seized were 500 hec­ El Salvador. President Duarte had made the down, there are fewer jobs available for all tares or more. The landowners were paid rate of exchange official in El Salvador-5 Salvadoran people, resulting in a lack of mo­ with 25% cash and 75% bonds. As of yet, colones to $1.00 and the black market was 6 tivation for these displaced people. title to the land remains in the coop, and colones to $1.00-and also frozen the price PROGRESS not with the peasants. of the Family Food Basket. Many people Even though peasants had worked the Even though El Salvador is often por­ disagreed with this, and were on TV giving trayed in our media as war-tom and in con­ land for years, they were woefully lacking in their viewPoint. management skills. Organization, bookkeep­ stant upheaval, there is progress being The newspaper that we visited, El Diario made. Particularly noteworthy is the people ing, bank loans, marketing were new skills de Hoy, often disagrees and says no. One that needed to be learned, and quickly. Be­ who are returning to El Salvador to work group took out a subscription to this news­ for their country's future. These people had cause these problems had not been antici­ paper in the name of President Duarte. pated and planned for, production dropped. lived and worked in the United States for This in turn, resulted in more economic FREE ELECTIONS many years, and have now moved back to El problems for the whole country. March of 1984 was a major stepping stone Salvador. One lady to whom I spoke lives in The coffee growers who before marketed for the people of El Salvador. Elections, free the United States, but her children live with their own coffee on an individual basis, no elections, were held, and Duarte was elected her ex-husband in El Salvador. When I President. Then, in March of 1985, free elec­ asked if she didn't miss them, she replied longer do so. The government buys the tions were held to elect a national assembly. "Yes, but I think there are too many free­ coffee and markets it. The coffee growers Although El Salvador is a very small coun­ doms in the United States. It is better for are protesting that the incentive to take the try with a large population, they would like them here." financial risks to grow the coffee is no to be completely self sufficient. Many El Salvador contends with the guerrillas longer there. Also, the growers feel that people we spoke to acknowledged the assist­ being aided by the Sandinistas of Nicaragua, coffee is not being marketed by people with ance of the United States, and also acknowl­ and they are very aware of the political know-how and is only being used a political edged that they still need our help. ideologue of the Sandinistas. Coronel Her­ tool. nandez stated his belief that the Sandinistas At the same time that the land was taken PRESIDENT DUARTE President Duarte has been continually do not have the people's support in Nicara­ away, the banks were nationalized. No fore­ gua, and that El Salvador must help the warning was given, soldiers marched in and criticized in the media of the United States as being merely a puppet of the United contras, not militarily but in other ways. told the employees that the banks and all Both he and Rolando Monterosa of El furnishings now belonged to the state. States. El Salvador had had a history of up­ heavals, of military coups and juntas. De­ Diario de Hoy told us that if the Sandinistas GUERRILLA MOVEMENT mocracy does not come easy. As one lady are succesSful, their next stop will be El Sal­ Coronel Hernandez of COPREFA, the put it, "He is the best of the worst." vador. press arm of the military, gave us a view of The Arena party would like to see Duarte SUMMARY the guerrilla movement which still exists in out of office. In meeting with their presi­ In Central America, Nicaragua has El Salvadbr. Helped by Cuba and Nicaragua dent, Freddy Cristiani, and their treasurer, become the focal point. In the American from the beginning, the guerrillas originally Orlando Menendez, they told us their hemisphere, Nicaragua has become the numbered about 15 thousand men. But be­ party's philosophy. They believe in private focal point. cause the Salvadoran army has become enterprise with as few restrictions as possi­ Even though her Sandinista Marxist/Len­ better trained in guerrilla warfare, the guer­ ble. The agrarian reform is a disaster, they inist history is brief-since 1979-she has rillas now number 4 to 6 thousand men. The said. The majority of the population is gained world-wide notoriety. guerrillas have also changed their tactics. below 40, and education is badly needed. Be­ The phrase "Revolution without borders" Before, they would stop traffic and extract cause the economy is struggling, most chil­ applies to the Sandinista Marxist/Leninist a "war tax" from motorists, and would also dren must work in agriculture and cannot movement. This alone makes her neighbors stop the agricultural products from getting finish school. Then, too, there are not exceedingly nervous. The traditional Latin to market. The Salvadoran army now has enough schools to meet the need. American dictator is harmful for his people, regular patrols and guards in key areas and DISPLACED AND REFUGEE CAMPS but not for his neighbors, as Armando roads. This has forced the guerrillas to The uncertainty and upheaval produced Guardia of Costa Rica told us. resort to small groups who commit acts of by the guerrillas sabotage and fighting have Terrorism. Kidnapping. Hijacking. sabotage, especially of electricity and com­ resulted in approximately 500 thousand Murder. Each has been linked to the net­ munication. people who have left their homes. Those work of which Nicaragua has become a part. who have left El Salvador are termed refu­ Disinformation. Nicaragua has not only HUMAN RIGHTS gees, and those who have re-located are employed a public relations firm in the Human rights violations was and is major termed displaced people. United States to disseminate disinforma­ concern. At the height of the Death Squads, Because these people regarded their tion, but has also had assistance of the ex­ murders numbered up to 800 a month. moving as temporary, the government has pertise of the USSR KGB. Human rights improvement thus became a no policy or regulations in regards to camps. Throughout history, indecisiveness is cata­ contingent of aid from the United States. Some families have gone to relations and re­ strophic. We of the United States need to We visitied the Commission of Human settled themselves. But approximately 5 to make a decision. Will we assist Nicaragua to Rights and talked to Sonja Mundoz. There 8% end up in a camp. There is a constant become a model for the world-the first are 3 offices located in different parts of El movement from camp and camp, and some country who won against Communism. Or Salvador where people can come and report familles have been in their camps up to 5 will we continue to vacillate, giving the San­ human rights violations. This group visits years. Now the government has instituted dinistas more time to further oppress Nica­ the security forces dally, and records names the Ministry of Planning to bring order out raguan citizens. of captives. These prisoners can be kept in a of this chaos. We must help the Contras, the Freedom prrison for 15 days. During this time, pri­ People living in these camps have chosen Fighter, the Miskito Indians, the Rama and vate interviews can take place, family can sides, either the guerrilla side or the govern­ Sumo Indians. These people deserve the take medicine, clothing and food to them. If ment side. If they are linked to the guerrilla right to participate in governing themselves, they are sent to another place, the Human side, they go to the private church camps. If to have freedom of religion, to have free­ Rights group keeps track of them. The fig­ they are linked to the government side, they dom of speech, and above all, to have free­ ures given by the Human Rights Commis­ go to the government run camps. dom from fear. One member of our group sion of atrocities are those that they have Aid comes to El Salvador for these people put it in perspective, that this is really a verified from about 45 different organizations, from fight for men's souls. April 8, 1986 EXTENSIONS OF REMARKS 6799 NATIONAL GOVERNORS' ASSO­ taken on the site of the release. We do not public health protection demands quicker CIATION POSITION ON SUPER­ believe that state or federal permits will be response actions. The remedial action pro­ FUND a substantial cause of delay in cleanups, yet gram is particularly cumbersome and should they will be instrumental in ensuring that be streamlined. The Superfund program can the public is adequately protected in the be made more efficient if the states and re­ HON. JAMES J. FLORIO event incineration, underground injection, gional offices are given larger decision­ OF NEW JERSEY or other remedial measures transfer waste making authorities than they currently IN THE HOUSE OF REPRESENTATIVES residues off site or into other media. have. In particular, states should have the Adopt the provisions of the House bill es­ option to take the lead role in planning and Tuesday, April 8, 1986 tablishing a response program for the re­ implementing Superfund response actions, Mr. FLORIO. Mr. Speaker, the conference lease of petroleum into the environment with a right of first refusal to assume the committee is currently considering the many from an underground storage tank. Leaking lead at particular sites. State concurrence underground tanks represent a serious and should be required before EPA or responsi­ important issues involved in final legislation to growing public health threat, and we believe extend and expand the superfund toxic waste ble parties undertake any removal or reme­ the time has come to address this problem. dial action under CERCLA. The law should cleanup program. The States have been part­ We know that the decisions you must allow states to develop a statewide generic ners with the Federal Environmental Protec­ make in reauthorizing Superfund are diffi­ response for sites on the national priorities tion Agency (EPA) in the implementation of cult, but the national interest requires a full list, and the administrator of EPA should be this program and have many valuable insights five-year reauthorization of this important required to approve such programs within a to share with us. statute. We would like to work you in the reasonable period of time or show cause Recently, the National Governors' Associa­ weeks ahead to secure the reauthoriztion, why he has not done so. Once this program tion wrote to members of the conference and hope you will contact us if we can be of has been approved, the state should be able any assistance. We have enclosed a copy of to assume full and complete responsibility committee to explain its priorities for the final the NGA position on Superfund, and will legislation. The NGA letter underscores the for management of the cleanup effort at na­ very much appreciate your consideration of tional priorities list sites where it chooses to importance of strong, specific uniform national our views on these matters. take the lead. Such responsibility should in­ cleanup standards in the legislation as well as Sincerely, clude establishing priorities, undertaking re­ the procedures that will guarantee meaningful GOVERNOR ANTHONY S. EARL, medial investigations/feasibility studies, se­ State involvement in the cleanup process. I Chairman, Committee on lecting contractors, conducting removals or recommend the NGA position to my col­ Energy and Environment. remedial cleanups, and similar actions. leagues as the Congress continues to develop GOVERNOR ARCH A. MOORE, JR., Cost Recovery. The Governors urge the Vice-Chairman. Committee on Congress to provide clear guidance to the final legislation. Energy and Environment. NATIONAL GOVERNORS' ASSOCIATION, EPA to clean up hazardous sites as the first March 13, 1986. SUPERFUND priority and negotiate with responsible par­ Hon. JAMES J. FLORIO, The Governors believe that the protection ties second. If negotiations have not suc­ U.S. House of Representatives, Rayburn of public health and the environment re­ ceeded after a reasonable period, litigation House Office Building, Washington, DC. quires a major and very long-term commit­ is appropriate. The current practice of the DEAR CONGRESSMAN FLORIO: The Super­ ment from businesses, the federal govern­ state and the federal government litigating fund hazardous waste cleanup program is ment, and the states to clean up abandoned separately to recover their respective share the cornerstone of the nation's effort to and leaking hazardous waste sites, spills, of cleanup costs is duplicative and wasteful. protect the public health and the environ­ and other releases of hazardous and toxic It should be made clear that states already ment by correcting past mismanagement of substances. As the next step in this commit­ have a cause of action to recover costs at hazardous wastes, and the National Gover­ ment, the Governors urge the Congress to sites where they have contributed matching nors' Association strongly supports its reau­ expeditiously reauthorize and extend for funds, and the states and the EPA should be thorization as a top priority of this Congres­ five years the Comprehensive Environmen­ directed to agree that one or the other will sional session. As Chairman and Vice-Chair­ tal Response, Compensation, and Liability have the lead in litigation for full recovery man of the NGA Energy and Environment Act

71-059 0-87-30 (Pt. 5) 6802 EXTENSIONS OF REMARKS April 8, 1986 for the damage done. The testing in Micro­ programs. Only through the appropriations before undertaking major projects. Outside di­ nesia represents only a fraction of the test­ process did those who were paying the con­ rectors could effectively seek justification of ing activity we have seen over the last few struction bills have a voice in operations of need before major projects are launched. decades in Nevada. We in Nevada expect the same or better treatment. This land is not the TV A. When the national taxpayer said "no Thus, a broader based Board of concerned only desert, it has a multitude of uses from more" in the 1950's, the self-financing act members, detached from the responsibilities grazing to mining to recreational activities. transferred this obligation for power programs of day-to-day operations, could provide useful These economic opportunities are no longer to the people who lived in the region and policy guidance to TV A and service some of available to Nevada. needed the energy if the region were to devel­ the functions listed above which are absent Before I can support a comprehensive test op and prosper. The role of the electric pro­ under the present governance arrangements. ban it must include compensation for Ne­ gram seemed to be growing in TV A's total MEMBERSHIP OF THE NEW BOARD vada's scorched lands. Today I am introduc­ program. ing a resolution to have Congress express its Franklin Roosevelt in 1933 had asked for Generally, the same statutory requirements sense that the United States should pay as apply to Board members now would apply compensation to civilians working at the "a corporation clothed with the power of gov­ ernment but possessed of the flexibility and to the members of the new Board. This in­ Nevada test site who lose their jobs due to volves U.S. citizenship, a belief in the feasibili­ ratification of a Comprehensive Test Ban initiative of private enterprise." The TV A Act Treaty and to the State of Nevada for deg­ itself states, "The board shall direct the exer­ ty and wisdom of the TV A Act, and a ban on radation of the land at the test site caused cise of all powers of the corporation." This is financial interests in businesses which would by nuclear weapons testing. similar to the concept of the model corpora­ be adversely affected by the success of TV A The Nevada test site presently employs tion statute of the 1920's and 1930's, which (primarily electric utilities and chemical fertiliz­ about 7,000 men and women. If you include stated: "The business of the corporation shall ers). Additionally, a requirement for geograph­ the support industries, the site generates be managed by the board of directors." ic diversity would be added and the prohibition nearly $1 billion for our economy. Many The impossibility of such an arrangement against engaging in any other business or pro­ have come to depend on nuclear testing in 2 Nevada for their livelihood. has since been recognized in business litera­ fessional activity would be removed. Yes, we should stop testing eventually, ture and the model statute has been changed Citizens of the valley, in making recommen­ but we cannot do that without provisions to reflex the more realistic concept: "The busi­ dations to the President, and the President, in for the many families in Nevada who have ness of the corporation shall be managed proposing nominations to the new TV A Board, come to depend on it in one way or another. under the direction of the board of directors. 1 should also consider in candidates the other I cannot support a bill that will not compen­ While private enterprise has been flexible attributes commonly sought in directors for sate Nevadans for this loss as well as the and innovative in its approach to corporate large, complex organizations. These include: state for the loss of the countryside. governance, the same cannot be said of TV A. First. Integrity; Nevadans should not be abandoned. I will be introducing, as I will talk about in a few The TV A still clings to the concept that the Second. Wisdom; minutes, a bill to provide for compensation three-member board can effectively manage Third. Independence; for our land and for our people. the corporation (actually, any two members at Fourth. A valid knowledge or experience We in Nevada have accepted nuclear any moment in time can direct the corpora­ that can bear on TV A's problems and delib­ waste disposal on our doorstep and we have tion). This fragments the responsibility and ac­ erations of the board; put up with decades of bombing in our back­ countability. Fifth. A record of accomplishment within or- yard because we knew it was in the interests The uniqueness of TV A, its roles and func­ ganizations; of our country. We are only asking for what tions, limits the blanket adoption of the busi­ we know we deserve. Sixth. An inquiring mind; ness corporate governance model for the Seventh. A willingness to speak one's mind; agency. However, enough similarity to large Eighth. An ability to challenge and stimulate PROPOSED CHANGES TO private corporations exists-size, complexity, management; IMPROVE TVA MANAGEMENT technical challenges, delivery of services, Ninth. An orientation to the future; and huge financial obligations, a large number of Tenth. A willingness to commit time and HON. RONNIE G. FUPPO employees, diverse constituencies-to recom­ energy. OF ALABAMA mend modification of such a model of the The proposal directs the President to con­ IN THE HOUSE OF REPRESENTATIVES governance structure which is found in the sider for nominations the recommendation of major business institutions in this country, Tuesday, April 8, 1986 the Governors, individual citizens, and busi­ such as General Motors, Ford, AT&T, and ness, industrial, labor, environmental, electric Mr. FLIPPO. Mr. Speaker, earlier I dis­ others. power distribution, and civic and service orga­ cussed some of the background leading up to The business corporation board model, with nizations. The proposal also calls for the the management problems evident in the Ten­ outside directors to monitor, oversee and reg­ President to seek qualified board members to nessee Valley Authority today. In the near ulate the day-to-day management by profes­ reflect the diversity and n~eds of the service sionals, seems to offer other advantages for future I will be introducing legislation to im­ area, that is, no single constituency should TV A because of the differences between the prove the management structure of this dominate the board. TV A and private business organizations. agency which is so useful to the people of the Essentially, the same political process TV A is not subject to the constraints of Tennessee Valley and of the Nation. I want to which has applied to the selection of TV A di­ competition and the marketplace to the same share with my colleagues my thoughts on the rectors for more than 50 years would still extent as a business. Outside directors could proposed changes. apply under the proposal. That is, interested provide a valuable new perspective of the THE CORPORATE MODEL constituencies of the TV A would make sug­ feelings of consumer stockholders who must In rhetoric and in fact, the TV A's corporate gestions to the President who would send structure borrowed heavily from the corporate pay the bills TV A incurs. TV A is not subject to regulatory review of its nominations to the Senate for public hearings business world of the time of its creation as and confirmation. At all points in the political opposed to the general form for public institu­ actions in its electric power operations as other utilities are. Outside directors could process, the people of the region would still tions in a democratic society. No words in the be free to express their thoughts on the nomi­ act address the concepts of limitation of come closer to providing a more creditable armslength review of rate questions. nees through the media, through their elected powers or of separation of powers inherent in officials, and through other means of expres­ the system of dual Federal State sovereignty TV A does not have to respond to the pres­ sures and probing of the financial markets sion available to citizens of this country. or in the tripartite organization of the Federal Government. (The original board's attempt to ' The form of corporate governance which 2 To assure geographic diversity the legislation re­ divide administration of the TV A major pro­ emerged for TVA could be said to reflect the public quires that three of the board members be resi­ grams among themselves is generally regard­ administration reform theme of the 20's which ex­ dents of Tennessee; one a resident of Alabama; one, ed as a disastrous experiment in manage­ aulted "professional" or "technocratic" manage­ Kentucky; one, Mississippi; one a resident of either ment over "political" or "people-oriented" manage­ Georgia, North Carolina or Virginia, and one a resi­ ment.) The Agency was even given broad ment. This reform effort's most enduring contribu­ dent of any state in the Union. Terms would be for blanket authority to conduct its business with­ tion to public administration has been the strong 3 years with reappointment possible for two addi­ out the annual authorizations required of many city manager movement. tional terms. April 8, 1986 EXTENSIONS OF REMARKS 6803 What changes is the number of board mem­ not be expected to have individual staff assist­ individual would have the responsibility for the bers and their potential for increased contacts ants. However, some of the board's commit­ day-to-day management of TV A and the carry­ with the total constituency of TV A through the tee functions would probably require assist­ ing out of policies established by the board of larger number of board members and the lo­ ance of a small permanent staff and perhaps, directors, a pattern of operation found in cation of board members at diverse geograph­ depending on the nature of the activity, aug­ almost every business corporation. This is ic points within the service area. mentation by temporary staff from time to also the pattern of operation found in the The critical difference under the proposal is time. electric distribution systems within the TV A in the function and purpose of the board. Any attempt to completely describe board area. In naming a nuclear "czar" TVA appears While the initial TV A board evolved into a functions and operations runs the risk of to be moving in the direction of a strong chief three-person policy and management entity, either providing a potential straight jacket that executive officer, that is, the transferring of the restructured board's function would be to fits only the current moment or being incom­ some of the board's authority for operating establish policy and monitor its execution by plete or imprecise. On the whole, the original the nuclear division to a single individual for at full-time professional managers. TV A Act leans toward the latter position. 3 least a limited period of time. Although the new board members may Board members who are unacquainted with come from a specific constituency, organiza­ the role of boards in the corporate world Although the first TV A board members tion, group or geographic area, as they always would be well served by a review of the con­ eliminated the concept of a statutory execu­ have, the new board and its members would siderable current business literature on the tive or manager which had been provided in reflect a broader view than the view con­ subject. early versions of the TV A legislation, a posi­ strained by the somewhat different perspec­ In discussing the changing role of boards as tion of general manager was soon found tive of day-to-day management which may observed in the business world, J. Spencer · useful and was created by the board in 1936. have more narrow obligations and responsibil­ Letts observed in the July 1980 issue of Busi­ The proposal's statutory CEO would prob­ ities. ness Lawyer: ably acquire some of the functions of the Except for the few guidelines of the legisla­ Although it has been defined in many TV A's present office of general manager and tion and the report and legislative history, no ways, the contemplated role for the board certainly some of the management functions quotas or other restrictions would be imposed usually contains an element which may be now exercised by the three-man board. for board membership so the President would characterized as that of "corporate watch­ The CEO would appoint, with the advice have the greatest possible flexibility to nomi­ dog." In the performance of this role, board members would proceed from an attitude of and consent of the board, and without regard nate a diverse board of the most excellent skepticism and would be expected to raise to the provisions of Civil Service laws applica­ people available for service on the TV A board. questions broadly probing the wisdom of ble to officers and employees of the United The 6-month delay from enactment of the proposals made by management as well as States, such managers, assistant managers, legislation to its implementation would allow the procedures by which such proposals are officers, employees, attorneys, and agents as the President time to select and nominate the formulated. are necessary for the transaction of the busi­ new board members. During this period the in­ The value of having the board play this ness of the Corporation. The CEO would role seems apparent if one presumes that cumbent board members would continue to define the duties of these people and would serve. Nothing in the legislation prevents the management will consistently follow the profit motive and bring to the board propos­ establish, subject to board approval, the rate President from nominating incumbent mem­ als which will be in its own and the corpora­ of basic pay for such managers, assistant bers to service under the restructured board. tion's best economic interest. The role of managers, officers, employees, attorneys, and HOW THE NEW BOARD WOULD FUNCTION the board would then be to raise questions agents, not to exceed the, annual rate payable After confirmation by the Senate, the new to determine whether the proposals in fact for positions at level V of the Executive board would be organized under the direction would serve the corporation's economic in­ Schedules in effect at the end of the applica­ of the Chairman designated by the President. terest and also to determine whether their implementation would contravene some ble fiscal year. The Chairman would name members to the larger social or moral interest, as might pro­ The present level V rate is set at $68,700 · various committees the board might find nec­ posals involving the creation of pollutants per year, an amount lower than some TV A ex­ essary: a nominations and compensation com­ or the making of "sensitive payments". ecutives are paid today. However, procedures mittee (to seek a chief executive officer and The directors would also be responsible to prevent reduction in pay and, under some fix compensation); the rate review committee for monitoring self-dealing by the manage­ circumstances, to provide increases in com­ (to review electric rate structure and changes) ment and making sure that corporate acts pensation over what is now allowed, are pro­ the audit committee (to name auditors and are properly recorded and disclosed so that vided under section 2(h). (See Compensation review audit reports) and an executive com­ potentially objectionable practices would be and Employee Policies, below.) mittee (to set board agendas and other desig­ sure to receive scrutiny . . . . The more independent the director, the The detailed definition of the CEO's respon­ nated functions). more likely that he will be fully able to per­ One of the initial priorities would have to be form this function. While not expressed in sibilities, authority and compensation would be the drafting and adoption of a set of bylaws precisely these terms. SEC Chairman set out initially by the board and then negotiat­ for the board. This would define the exact Harold Williams seems to have followed ed as to specifics into contract form by the duties of the committees and the responsibil­ somewhat this line of reasoning. His sugges­ board and the selected individual. The legisla­ ities and authority of the chief executive offi­ tions that boards of directors might best be tion requires the CEO have management expe­ cer. Another would be the search for and composed entirely of independent directors rience in large, complex organizations. The other than the chief executive, have usually CEO would not necessarily have to be well hiring of a chief executive officer to actually be premised on his view that forces working operate the agency. The board has great flexi­ on directors who are not completely inde­ versed in all aspects of TV A's operations be­ bility in seeking this individual either inside or pendent may cause them to be too support­ cause of the exceptional quality of many of the outside of the TV A. (See The Chief Executive ive.... TV A's managers and operators available to Officer, below.) . . . The significant contributions of direc­ assist the CEO in management of the corpora­ Board members would serve on two-to-five tors need not be made at routine meetings. tion. committees depending on the number of com­ Most corporate boards in fact are simply too The concept of compensation incentives for large to lend themselves to collective deci­ performance is also introduced. This is a move mittees in being at any one time. Service on sion making, and the most important mat­ the statutory committees should generally be ters of necessity have been and continue to toward the idea reflected in some business considered for the duration of the term of the be resolved prior to the board meeting. organizations that outstanding performance member appointed. (See Board Committees, THE CHIEF EXECUTIVE OFFICER should be rewarded and failure should result in penalty. below.) The legislation creates a new position within If monthly meetings of the full board were TV A, the chief executive officer [CEO]. This The legislation allows the board the flexibility established, up to 48 meeting days would be to hire the most outstanding CEO available and available for each member to attend commit­ provides the board with ability to reward the 3 In some parts where the TVA Act gets precise, CEO or discharge him. Because such people tee meetings and other authorized activities. such as the pay limits for employees of the agency, As is the case of board members in busi­ removal of the straight jacket has been suggested are never in great supply, an outstanding CEO ness corporations, TV A board members would by TVA management. could exert great influence within the organize- 6804 EXTENSIONS OF REMARKS April 8, 1986 tion because of the possibility the officer would matters including review, preparation, meet­ THE GLOBAL ECONOMY: A THREAT TO retire or take some other job. ings and travel. AMERICAN POWER Initially, during the reorganization phase, . questions. staff or consultants to assure the kind of inde­ a program which explicitly called for the The difference in the proposed procedure pendent rate review the ratepayers deserve. transfer of wealth and power from the de­ and the existing procedure is the independ­ The only extra staff cost incurred under the veloped capitalist nations Cthe West) to the Less Developed Countries As an example, I have included for the American industry bleak indeed. within statutory guidelines. The rate proposals are RECORD a recent speech by William Hawkins Any change in the distribution of world reviewed by and finally determined by state-estab­ entitled "The Global Economy: A Threat to wealth will also produce a change in the bal­ lished regulatory commissions

LoNG IGNORED AS SAFE, SOUTH PACIFIC Is­ U.S. military facilities, dismantle joint intel­ ample, have just overwhelmingly approved a LANDS NOW VEX WASHINGTON-A TROUBLED ligence-gathering and communications sites, new political relationship with Washington AREA Is RESENTFUL OVER U.S. FISHING and even join the nonaligned movement. that gives military concessions to the U.S., POLICY, FRENCH TESTS OF WEAPONS These groups have helped organize island­ the arrangement also bars the use, testing THE RUSSIAN BEAR IS FLIRTING ers into anti-U.S. groups as well. Through or storing of nuclear weapons there. some leftist New Zealand trade unions, While the Soviets increase their friendly Moscow dispenses money and support. overtures in the region-for example, by AucKLAND, NEW ZEALAND.-Think of the South Pacific. Paradise usually springs to U.S.-NEW ZEALAND RIFT passing out free airline tickets to visit mind. Lush, idyllic vacation spots like Tahiti Prime Minister David Lange of New Zea­ Russia and offering scholarships to study and Fiji. Cute little countries like Tonga, land carried out a popular 1984 campaign there-anti-American feelings are growing with a king who takes up two first-class air­ pledge of banning U.S. warships' port visits and regional diplomats blame the Reagan line seats, and Tuvalu, which earns its way unless the U.S. certifies that the ships are administration. in the world mainly by selling colorful post­ nuclear-free-which it won't. Fearing that Mr. Reagan's first-term rejection of the age stamps to collectors. the New Zealand action might be copied 1982 Law of the Sea treaty was viewed by is­ There is Papua New Guinea, with its vast, elsewhere, the U.S. retaliated with strong landers as an official endorsement for U.S. exotic jungles. But you have to squint to denunciations and suspended all military co­ fishing vessels to steal their most valuable find the others on an average-size globe: operation with New Zealand. The U.S. also economic resource: tuna. Under a 1976 U.S. Kiribati, Vanuatu, Western Samoa-in all, cut New Zealand out of a secret and elite in­ law, tuna are exempt from claims of a 200- two dozen microstates, five million people, telligence-sharing network that includes the mile economic-zone because they are a some 1,300 islands, most of them so tiny and , Canada and Australia and "highly migratory species." So U.S. tuna far away from the world's troubles that it is involves swapping secrets that the U.S. fishermen freely take catches in violation of difficult to conceive of their causing trouble won't share, for example, with NATO. the laws of the island nations involved. The or being troubled themselves. The U.S.-New Zealand actions strained re­ Reagan administration also angers islanders That has been Washington's view, too. lations and rendered largely inoperative the by backing French colonial claims to French The affection that the U.S. gained by push­ 35-year-old Anzus alliance, which most Polynesia and New Caledonia. ing Imperial Japan out of the region four island leaders viewed as a regional security "The United States must stop stomping decades ago seemed boundless. Diplomacy, blanket. The U.S. retaliation made it diffi­ around the South Pacific like a heedless what little seemed required, was often put cult for New Zealand to carry out what had hippopotamus, following damaging policies in the hands of generous campaign contrib­ been its primary intelligence-gathering mis­ dictated by North Atlantic interests," says utors who had to consult maps to discover sion in the five-power network: keeping a an editorial in Pacific Islands Monthly, an exactly where they were going as ambassa­ military and political eye on the South Pa~ Australian-based magazine that reflects re­ dors. With two staunch allies, Australia and cific. gional thinking. New Zealand, looking after the region, it The region's nuclear allergy was aggravat­ was an easy part of the world to ignore. ed when French agents bombed a Green­ MILITARY CONCERNED peace environmental protest ship, the Rain­ All this hardly makes for the next super­ A 40-YEAR POLICY bow Warrior, in Auckland harbor, killing a power flashpoint. But a succession of U.S. Not anymore. With U.S. policy in its 40th photographer. The ship had been en route Pacific military commanders, including year of what a Heritage Foundation study to Muroroa to protest French testing, which Adm. William J. Crowe, who is currently the calls "benign neglect," the Reagan adminis­ has gone on underground since 1975 and chairman of the Joint Chiefs of Staff, have tration has discovered that neglect has its was carried out in the atmosphere before expressed concern and quietly lobbied the price. The region is troubled economically that. Reagan administration to clean up its act in and socially. It is angry over U.S. fishing Eight nations of the 13-member South Pa­ the region. That process began last summer, policy and French nuclear-weapons tests in cific Forum, including Australia and New after the Anzus crisis and the Kiribati­ the area. Anti-West Third World rhetoric is Zealand, meanwhile agreed to a treaty cre­ Soviet fishing agreement, when Secretary of on the rise. The Soviet Union's flirtations ating a South Pacific Nuclear Free Zone. State George Shultz toured the region. are beginning to pay off. Australia declined to cooperate with the A December 1984 study for the State De­ On Dec. 29, the New Zealand Times U.S. in MX missile testing. partment's Office of Long Range Assess­ summed up the trends in an article that Of far more immediate concern, however, ments and Research notes that "the bull is began: "This may be remembered as the was Moscow's success, for the first time, in not yet amongst the china" but that the sit­ year the Pacific Ocean ceased to be an getting an economic-cooperation agreement uation could quickly change. Good will American lake.'' with one of the microstates. The Republic toward the U.S. is large, the study said, but That is overstating it, Western diplomats of Kiribati, frustrated by U.S. fishing "the real question is how long can the reser­ say. But U.S. military strategists, for one, abuses, last summer opened its 1.4 million voir be tapped without replenishment?" Dis­ are disturbed by what they see. While the square miles of Central Pacific waters to a cussing Soviet offers to trade aid for fishing end of the presidential crisis in the Philip­ Soviet fishing fleet. rights, the study went on: pines would seem to improve the odds of And last fall, Soviet cruise liners, banned "The current U.S. fishing difficulties in America's holding on to its bases there, that from plying the region in retaliation for the the region to make the Soviet fisheries can't be considered certain, and when these Afghanistan invasion six years ago, were in­ offers appear more attractive than perhaps strategies look for backup positions in the vited back in to help a sagging tourist trade. they would otherwise. Secondly, the finan­ Pacific, the view is no longer so pleasant. To

PROLOGUE United States. In other parts of the world, cause he knew that "unity created