5770 EXTENSIONS OF REMARKS March 18, 1980

EXTENSIONS OF REMARKS

JOHN A. LUKE DISCUSSES WEST­ been doing. Let me· say right at the start ufacturing locations. We have targets and VACO'S ENERGY PROGRAM: that we hardly profess to know all the an­ we work toward these targets. One of the COAL CONVERSION, D.E­ swers and while we feel we· have had some techniques we use is to continually compare successes, we're a long way from being com~ each of our operation's results with that CREASED DEPENDENCY ON placent. As a matter of fact, we are very... which we believe represents the best in per­ FOREIGN OIL, FUEL CONSERVA­ very restless and are looking very hard at formance. TION, COGENERATION, AND other things we can do, for more progress to This isn't the forum to share all of our de­ NATURAL GAS EXPLORATION make. We hope you will find our activities tailed conservation steps. We all know of of interest, just as we are intensely 'interest­ many things that can and are being done. ed in your progress and your ideas so that For this morning, I'd just like to register HON. JENNINGS RANDOLPH we can benefit from them. Surely no one that conservation represents a key part-a OF WEST VIRGINIA has a monopoly on all the answers to the basic cornerstone-of our total energy pro­ IN THE SENATE OF THE UNITED STATES energy problem. gram that includes thipgs l•ke process and So, here's our energy story. In the early plant design, infrared scanning to identify Tuesday, March 18, 1980 1970's, well before the Arab embargo of sources of heat loss, the addition of insula­ e Mr. RANDOLPH. Mr. President, 1973, the senior management of Westvaco tion and the reduction in our fresh water re­ this Nation's paper mills represent a became concerned about our country's grow­ quirements·so that we can maximize the use very energy-intensive industry. West­ ing dependence on foreign sources of of warm recycled water. That is stresses the energy. We saw this as a challe~ge that application o~ advanced technology to moni­ vaco Corp., a major producer of paper, would call for plenty of good old American tor and control the performance of our packaging, and chemicals, has reduced ingenuity, large capital expenditures and equipment. We are working hard at conser­ its dependence on foreign oil and is restless determination. Interestingly vation, and I believe effectively. utilizing and finding alternative enough, our early insights were gained Beyond conservation, we have also made sources of energy. through data from the Department of the very important progress in switching from An innovative company, Westvaco Interior, indicating that the same informa­ the use of scarce and costly fuels to ones has been a leader in the environmen­ tion existed in the hands of our Federal gov­ which are lower in cost and more readily tal field and has many firsts within ernment-information that was also being available. Through these programs we have the paper industry. discussed by the API Raw Materials Com­ reduced our oil consumption at our domes­ mittee and Ron Slinn. In this light, what tic mills to a point where it represents only America's industries are talking has transpired since 1972 certainly cannot about 8 percent of our energy needs. about the problem of energy supply, be saJd to have been a surprise to our &ov­ At our Charleston mill, we have reduced but Westvaco is doing something posi­ emment. oil COilBumption by 50 percent through the tive about- it. Westvaco has been a While this Interior Department data did recent conversion of our largest power leader in this field in the la.St decade not cause concern in the Federal govern­ boiler from oil to coal. With this step, alone, and has an innovative program for the ment, it was of concern to Westvaco and so we have already started to save oil at the future. we began to contemplate a variety of things ra,te of. 30 million gallons per year. which could mitigate the impact of short­ Coal Ia already the primary. fuel at three The American Paper Institute held ages or higher prices of energy for West­ its 103d Annual Paper Week earlier other domestic mills, and at a time when oil vaco. Here are some of the things which we CO$ts have been increasing steadily, we've this week in New York City. Attention started to consider. pretty much stabilized our costs at each was focused on the various problems First, we began to consider how we might one. At one of these sites, we have devel­ the industry faces. conserve energy on the assumption that a oped our own captive supply of coal-our John A: Luke, executive vice presi­ rising level of imports would bring with it own mine which we operate, and it's only dent of Westvaco, presented Westva­ higher prices. two miles away from the mill's bunkers. co's energy program. John Luke noted Secondly, as a cushion for emergencies, we At our· remaining domestic mill in Wick­ that the company does not profess to decided to establish centrally located corpo­ liffe, Kentucky, we have just completed the know all the answers and while some rate reserves of oil in storage. tanks which mstallation of a new $25 million power progress has been made Westvaco is a could be drawn on· to supplement local boiler to bum bark and other wood wastes supply deficiencies which might be encoun­ in plaee of the oil and gas which had been long way from being complacent. tered at any of our individual plants. This this plant's traditional energy source for I note with particular interest that proved very valuable til the 1973-1974 short­ ·steam generation. This step is reducing this Westvaco, with 3,000 West Virginians age, and our tanks are full right now. mill's dependence on oil and gas by the on its payroll, has made the ·decision Thirdly, we began to do some preliminary· equivalent of 20 million gallons of oil per to move to coal from imported oil, not thinking ·about the possibilities of fuel year. because of Government intervention, switchirtg. By this, I mean switching to .ma• Another important .achievement has been but because it is economic to do so. terials which could be more secure in the recovery of materials previously left in This can serve as an example to the supply, and potentially lower in cost such as the forest after the completion of normal coal and other domestic or regenerable ma­ logging operations. We have found an eco­ rest of the industrial sector of what terials. We also began to contemplate what nomic way to recover this biomass refuse fuel savings can result from the direct we could do to bring some energy sources and to convert it into a viable energy re­ use of coal initiated of their own under our own captive control-:-energy such source as boiler fuel. Our initial work in this accord. Westvaco's conversion from oil as coal, el~ctricity and gas. area is being done near our Charleston ioca­ to coal is of immediate importance, Finally, we decided -to undertake a stuc;ly tion. We'll be expanding this program at but I am also interested in the natural to investigate whether there might be de­ Charleston and we'll take biomass recovery gas exploration program in Mineral posits of fuel either under timberlands to our other locations. We're sold on the County, W. Va. Westvaco is in the ·which were already under our ownership or, concept, and we have the source. Our objec­ alternatively, which might be in locations tive is to take full advantage of the yield process of construction of a pipeline near some of our major consuming oper­ from each forest acre...... for pulping, for saw from its gas fields to its mill in Luke, ations regardless of whether we owned the timber, for specialty chemicals, and for Md., just across the Potomac River particular energy-bearing lands or not. We energy. And we are very positive about the from West Virginia. This is indicative used an experienced consulting geologist to impact of this program on site productivity to Westvaco's commitment to help help us evaluate these potentials. in contrast to the impact from .conventional insure its energy supply. From this framework, shaped ·back in the site preparation. · Mr. President, I submit for the early 1970's, we believe we have developed a Some years ago, we. also did some in-depth RECORD John Luke's address: very comprehensive, a V~}' timely and a studies on the outlook for electrical very environmentally sound: energy pro­ energy-and these indicated that· utility WESTVACO'S ENERGY PROGRAM gram. I would like to comment on our prog- power could be very tight in certain areas It's a great pleasure to be with you today,­ ress in each of our objectives. · given the problems that have plagued the and to talk about Westvaco's energy pro­ To conserve energy, we initiated extensive development of nuclear energy. Because we gram. We've been asked to share what we've energy-savihg programs at_·each of our man- have been trying to look ahead here, just as e This .. bullet.. symbol identifies_ statements or insertions which are not .spoken by the· ·Membet: on the floor. 1.'1farch 18, 1980 EXTENSIONS OF REMARKS 5771 we've been looking at oil supplies, we are control through both ownership and leas­ been restless. We've been working. We've adding to our co-generation capacity. We're ing. The Luke mill, at the upper left, is ·lo­ been using every bit ·of ingenuity we could in the process of installing two new large cated in the very western part of the state muster to see what we could do for our­ turbo generators. One of these will be at of Maryland, and it straddles the state selves, in our own behalf. We feel that at a Luke-the other at Covington. When these · line-the Potomac River-with ·important time when energy is one of the top priorities units are on line in the very near future, components of its property and its oper­ of our country, we can say that we have these mills will have the capability of gener- ations located in the State of West Virginia. been addressing ourselves to this subject for ating all of their electrical energy needs. The initial 10,000 acres on which we are now the past decade in what seems to us to have Our Company's captive control of thia drilling are shown at the center of the slide, been a sound and effective way-in a way energy source will .have been importantly in West .Virginia. There you can see the gas fully consistent with the country's need to · strengthened. wells-the starred dots-and also the pipe­ reduce its dependence on foreign oil. . These examples are a few of the high- line .right-of-way-the white dotted line­ We also can say that our progress up to lights, but major ones, of the extensive running from the gas field to the mill. now encourages us to believe that the energy programs we have put in place. Our appraisal is that from the first 10,000 future also holds the promise of important There is, however, yet another major part acres of our total holdings there appear to additional opportunities for Westvaco. We of our energy program, one in which we be reserves of natural gas which would pro­ see both the opportunity to extend the have made some exciting progress, and that vide a continuous flow of over 4 million impact of our present work as well as to add is our natural gas development program. I cubic feet per day over a 15-year period. By wholly new dimensions, for example, work will devote the remainder of my present&- all standards, this should be very economic in such areas as coal and wood gasification. tion to this very important topic. gas. I enjoyed sharing Westvaco's energy story As with the rest of our energy program. We have two actively working drilling rigs with you. We feel that our future energy our natural gas story began to evolve during under our control, one of which we own, and succeSs and that of our nation as well is the early 1970's, when we began to study we are drilling new wells at the rate of going to be as good as we ourselves are dedi­ our timberlands and the areas around our about one per month. We have also author­ cated to making it-directly proportional to mills to determine whether there might be ized the purchase of a third rig, which is how demanding we are of ourselves. Given deposits of valuable fuels below the ground scheduled to begin drilling in the sprjng. resolute determination and latitude for the as well as in the trees above the ground~ The wells which we are currently drilling private sector and the free market to really Our studies indicated that the most promis- are typically about 2,500 feet in depth. At function, then the very fact of the energy lng area for initial exploration was near our this level we are able to tap the potentials in challenge holds the key to its solution. mill at Luke. Here limited drilling by others · the so-called Oriskany geological formation. Thank you very much.e had established that a commercial gas po- Our organization is developing good and tential might exist. Although the natural valuable know-how on the subject of how to gas available might not have appeared at- successfully fracture gas wells, where to SUBCOMMITI'EE ON CRIME TO tractive to commercial sellers of natural gas place the wells and how to develop them ef­ CONDUCT LOS ANGELES HEAR­ at the time, with gas prices of only about 30 ficiently so that they will be valuable com­ cents per th9usand cubic feet, ·we felt that mercia! properties. One of the very impor­ INGS ON THE POLICE USE OF as a captive source the potentials might be tant factors in our . pr-ogram is that the DEADLY FORCE much more interesting, especially with our whole operation is under the control of our concerns for both the future cost and avaU- own people with the help of only a few ex­ ability of energy. perienced outside consultants. We expect to HON. JOHN CONYERS, JR. We made preliminary seismographic stud- continue in this mode. OF MICHIGAN les. We began to lea$e land, and we started Based on our success to date, we have au- IN THE HOUSE OF REPRESENTATIVES some preliminary exploratory drilling. , thorized the construction of a pipeline Encouraged by these early steps, we have through our right-of-way to carry our gas Tuesday, March 18, 1980 moved aggressively to the point where in some 16 mUe& to our mill at Luke. We e Mr. CONYERS. Mr. Speaker, I wish the area near Luke we now either own or expect to have the pipeline in operation and to inform my colleagues that the Sub­ control 1 through lease more than 80,000 delivering our own gas by Labor pay. committee on Crime of the House acres which may have natural gas potential WhUe the pipeline is being built, we.'ll con- and which are available for exploration. · tinue commercial drilling to fully develop Committee on the Judiciary will hold We are actively addirig to this base of bind the potentials on the first 10,000 acre block a hearing on March 21 and 22 in Los under our control.· of our land holdings. Angeles to· take testimony on police­ Concurrently with our leasing and Initial And, we'll also be starting to explore the community relations and the police exploration, we took simUat steps to secure potentials of other blocks in the remaining use of deadly force. Beginning at 9:30 by lease a right-of-way which would permit 70,0()0 acres which we have under our con­ a.m., the hearing will be conducted in us to build a pipeline from the heart of trol near Luke. the · Health Services Administration these lands·to our point of consumption at Further, while these activities are going Board Auditorium, 313 North Figue­ the mill. on, we will be actively leasing additional roa, Los Angeles, Calif. Our early efforts in leasing, seismographic land in the same area, and we hope that we work and preliminary drilling were carried can continue to add substantial acreage to . ·As chairman of the Crime Subcom­ out anonymously so as not to reveal our in· our present holdings. mittee, I have seen that police-commu­ terest in the area until we had gained con- Based on our success in this area and the nity relations is an issue which has trol of both adequate acreage, and the pipe- growing .know-how of our organization, we been a great source of controversy in line right-of-way. · intend to also consider leasing potentials in numerous cities across the country. About this time last year, we felt that we other areas. Communities demand adequate police were ready to publicly announce our pro- Finally, at the appropriate tirlle, we will protection but at the same time there · gram and to accelerate our drilling work by consider the potentials which might be de- . starting to drill for production quantities of veloped by drilling to deeper gas formations is growing concern· about the increas­ gas rather than drilling to confirm our sets- on the land which we now hold or which we ing use of deadly force by and against mographic studies. may hold in the future. police as well as other sources of To date we have drilled about 14 produc- In summary, we believe that our natural police-community tension. ing wells, ·which appear to have the poten- gas activities represent a sound concept and Between 1969 and 1978, there was a tial of producing over 3 million cubic feet of a sound prograin, national total of 1,123 police officers natural gas per day in continuous flow. This Our initial activity has been successful slain by civilians, and it is conserva­ represents, for production assumptions, · and rewarding by any measure; tively estimated that there is one kill­ about a third of the measured, open flow ca- We will continue to probe and develop all pacity of the wells which we. have devel· ' of our potentials very vigorously. ing a day of a civUian by a police offi. oped. · And, after satisfying our logical captive cer in the country. The Law Enforce­ Our seismographic work seems to have needs, we are prepared to consider the gas ment Assistance Administration been good and so the correlations between project as a new corporate income stream has awarded .$816,232 to four the ·wells · that we have drilled and ·those and develop gas for sale fli the commercial groups to examine the abuses of which produce successfully· is very high. markets if our success continues beyond our deadly force and has given $1.5 mil­ There is some variation in the output of captive needs. . lion, during the last few months of each well, but we are very pleased with our Our natural gas activity, together with success ratio, and we feel that now we have the other key components of our energy 1979, to four .other groups to develop a reasonable basis for judging the potentiala program, which I have just described, repre­ standards for police that also include on about 10,000 acres of the 80,000 acres sents a major source of strength for our the use of deadly force. which we control. company. This; then, is what we've been Consequently, the purposes of this Tbe map on the screen shows the lands doing in Westvaco. We have faced the hearing, and possibly additional ones .near our Luke mill which we have under our energy problem ~ a maJor challe~ge. We've on this issue in other cities, will be to 5772 EXTENSIONS OF REMARKS March 18, 1980

examine the allegedly unjustifi~d lature to be elected over the next two the ideals of Rotary he was recently shootings of citizens by police, the months. Even now, the UN panel is not dis­ awarded the Paul Harris Award, which dangers faced by police officers in the banded but only suspended; to judge by the is Rotary International's highest record in a few . weeks we will be edging award. line of duty, police disciplinary proce­ toward accepting the conditions we now dures, the role of community anti­ reject. His was truly a lifetime of service. crime programs, and ways the LEAA Down in his Panamanian exile, the, shah He was active in the Manhasset-Lake-· Federal assistance programs might · now needs another operation for a gro­ ville Fire Department for over 25 help reduce the problems · associated tesquely enlarged spleen. It would be a dan­ years, serving as captain from 1960 to with the use of deadly force.e · gerous procedure even in a great medical 1962. and president from 1966 to 1968. school, but apparently will have to be car­ As an independent businessman in ried out in a Panamanian hospital. The U.S. our community for · over 30 years, he HOSTAGE CRISIS IN IRAN government does not seem to care. The shah's death might further unsettle the was active in the chamber of com- kings among our present .allies, but would . merce, and served therein as vice HON. ROBERT _J. LAGOMARSINO no doubt lead to another two weeks of hope president. For the past 31 years he has OF. CALIFORNIA. for release of the hostages. been a member of the Paumonok IN THE HOUSE OF REPRESENTATIVES By now, though, we ought to be doubting Lodge of Port Washington. whether the hostages would in fact be re­ I extend my condolences to his be­ Tuesday, March 18, 1980 leased even if · we kidnaped the shah from loved wife Carol, his family, and his e Mr. LAGOMARSINO. Mr. Speaker, his hospital and delivered him in shackles to many,.many friends.e I wish to bring to the attention of my Tehran. The point of the hoop-jumping game is not retrieving t.he shah, but humil­ colleagues the following editorial from iating the United States. The exercise shows the - March 12, 1980, edition of the BUSINESS SUPPORT MOUNTS that the U.S. is not a reliable protector of FOR -CAPITAL COST RECOVERY Wall Street Journal. its own citizens, let alone its allies. It shows The editorial summarizes clearly and that even if the United States is treated ACT succinctly the ineffectiveneSs of the with repeated contempt, we will do nothing Carter administration's policy in deal­ about it. HON. JAMES R. JONES ing with the hostage crisis in Iran. I In the early days of the crisis, this image OF OKLAHOMA might have been avoided, and the hostage agree that the time is long past due IN THE HOUSE OF REPRESENTATIVES for strong, dramatic action to secure problem resolved, through stronger rhetori­ cal and diplomatic reaction. But by now the Tuesday, Match 18, 1980 the release of the hostages. · .situation has been so badly bungled that The Wall Street Journal editorial the only answer is military force, or at least • Mr. JONES of Oklahoma. Mr. follows: the credible threat of it. At the very least, Speaker, the Congress is seeing here­ SPECTACLE oF lMPOTENCJ: President Carter should seize the collapse of tofore unequalled support for a bal- . The collapse of the UN Commission in . the UN mission as the occasion to heat up ·anced budget in fiscal year 1981, and Iran leaves the U.S. with no policy whatever the crisis so such a threat is again possible. this is an excellent trend. However, a · for freeing the hostages in the American At the same time, .we· should start to take balanced budget by itself will not be embassy, starkly revealing that in its cur- note of a few facts. ·The American embassy enough ·to cure our economic woes. It rent pQsture the Carter administration has in Tehran is a compound of 27 acres. Elite must be coupled with legislation that absolutely no leverage over the situation. American paratroQPei's are trained to open Our countrymen have been held captive their chutes_at 200 feet. In 1967, two Jolly will boost our sagging business produc­ now for four months, and we are reduced to . Green Giant helicopters flew the Atlantic to tivity and encourage industrial devel­ hoping for the best from ·the whim of an visit the Paris air show, with nine air-to-air opment. That is why I am so pleased · aged zealot. refuelings. During the Vietnam war, seven to have received another endorsement Eventually, perhaps, it will-suit the Aya- of the same helicopters flew some 500 miles, for H.R. 4646,- the Capital Cost Recov­ tollah's pleasure to send the hostages home. with in-flight refueling at night, to land un­ ery Act. Some quirk of mood or twis.t of Iranian do- detected in the Son Tay prisoner of war The American Textiles Manufactur­ mestic politics may yet provide a · way out. camp . A raid to rescue the hostages 50 Americans remain held-perhaps still would obv~ously carry risks, but it cannot be record in favor·of H.R. 4646. The cru­ bound day and night. From what we last · ruled out as militarily infeasible. cial nature of the textiles industries to heard, some are in· severe mental distress. .Military action, whether in a raid, a block­ the American economy can hardly be Seven of them, including those most specifi- &de . or punitive bombing, would of course overemphasized. That is why I am so cally accused of spying. by their captors~ carry a risk to the lives of the hostages. But happy this important and influential have not be~n · seen since the seizure. Three their lives have been at risk for _four months organization has joined an ever-grow­ American diplomats are held hostage not by now, and despite our entreaties and compro­ ing number of businesses and indus­ milltants but by the Iranian foreign minis- mises there is JlO end in sight. The immobil­ try itself. tty of the U.S. in the face of this provoca- tries endorsing H.R. 4646 as one meas­ . Meanwhile a diplomatic game is played, tion has already helped embolden ·the Sovi­ ure necessary· for a · more healthy the purpose of which is to teach the United ets in Afghanistan and a new batch of em­ American economy. . States and its President to jump through bassy terrorists in Colombia. This is but a At this point I include the letter of hoops. The no use of force hoop. The taste of what is to come if this spectacle of endorsement from Mr. W. Ray Ramsey Clark hoop. The clergymen's visit American impotence is allowed to continue Schockley, the executive vice presi­ hoop. The kick out the shah hoop. The indefinitely ·• dent of the American Textile Manu­ forget economic sanctions ·after all hoop. facturers Institute. I commend his But while the circus· dpg at least gets a tasty words to my colleagues' atttmtion: morsel after each jump, Mr. Carter's reward IN MEMORY OF ROBERT J •. is some fresh task and fresh humiliation. . BERRAN· .AMERICAN TExTILE MANUFACTURERS The UN Commission is only the latest ex­ INSTITUTE, INC., ample. Mr. carter originally oppo'sed· the HON. LESTER L. WOLFF Washington. D.C.,.FebruaT1128, 1980. whole idea, but then agreed to it just in Hon. J.utts R. JoNES, · time to pr_ovoke a burst of optimism about oi' NEW YORK Cannon House Office Building, the hostages before the New Hampshire prl- IN THE HOUSE OF REPRESENTATIVES Washington. D.C. mary: By this week thelnitiative endedpre- Tues_day, March 18, 1980 DEAR CONGRESSMAN JONES: We take pleas- cisely in the dead end we predicted in these . ure in forwarding to you the enclosed reso­ columns at the time: "The next step prob- e ·Mr. WOLFF. Mr. Speaker, today I lutio.n in support of the Jones-Conable 10-5- ably will be a demand to open the commis- · sadly ·report the death, on March 8, 3 bill adopted unanimously by ATMI's sion firSt _and release the hostages on_its 1980, of a constituent ·of mine, Robert Board of Directors at its meeting here Feb­ completion." J. Berran, commissioner of the Man- ruary 5-6. So the u.s. has agreed to the principle basset Lakeville Water District, within ATMI is the national trade association of that an international tribunal, including my congressional'district in New York. spinners, weavers, tufters, knitters and fin-· representatives of such paragons of human Mr. Berran had resided in Manhas­ ishers of textiles. It represents the produc­ rights as Syria and Algeria, is competent to ers of about 85 percent of the textiles made pass judgment on the rule of the shah, ()Ur 'set for over 48 years. He was an active in the U.nited States. ally for 3'l years. ~ quid pro quo, we are Rotarian· for 29 years. For his distin­ The need for improved capital formation told to w~t the decision of an Iranian legis- guished service and contributions to in the textile industry is acute. The industry March 18, 1980 EXTENSIONS OF REMARKS 5773 has repeatedly urged revision of our tax de­ Mr. John Macy, the Director of the . To accomplish this goal, ·it is absolutely preciation rules in order to bring capital Federal Emergency Management Ad.. necessary to give law enforcement ·officials cost recovery allowances in this country to a ministration. The following 'is a por­ the means to successfully police the move­ level comparable to that .allowed by other ment of drug related currency into and out major industrial countries of the free world. tion of a recent letter to FEMA: of this country. Such changes are urgently needed at this DEAR MR. MAcY: time to help counter the impact long-con­ I have an Idea which I would like your I am sure that curbing the interna­ tinuing inflation is having upon funds avail­ advice and hopefully support on. It deals tional drug traffic will have a .signifi­ able for investment in modem, efficient with the Boy Scouts, Girl Scouts, 4-H ~d cant impact on drug abuse ·in this plant and equipment, and to help with the Mr. Cresson H. Kearny's study titled "Nu­ country. · industry's export thrust to which we are clear War Survival Skills." It was put out by The Drug Enforcement Agency and fully committed. the Oak Ridge study of do-it-yourself civil the U.S. Customs Service have both A rough rule of thumb ill the textile in­ defense. This study has received the sup­ expressed their support of this bill dustry is that over the long run capital ex­ port of Dr. Eugene Wigner and other highly penditures should be financed from cash qualified people. Mr. Kearny is a Rhodes stating that it would greatly_ curtail flow arising from depreciation and retained Scholar with an impressive- background in the illegal movement of U.S. currency after-tax earnings. This has become increas­ civil defense. out of the 'country as well as eliminate ingly difficult, and in most cases impossible, My idea is to have FEMA support the loopholes in existing law. to accomplish in our industry which tradi­ teaching of portions or all of this study Surely. keeping a closer watch on tionally is a low profit margin · industry. through the Boy Scouts, Girl Scouts, and 4- currency leaving the country will' limit This critical situation is badges for emergency preparedness with a to make illegal monetary transactions. caused in large part by the tremendous substantial portion of the education dealing impact of inflation upon working capital with Mr. Kearny's study. ·I believe that this ·inhibiting factor needs, as well as upon the costs of new plant As an Eagle Scout I feel there is merit in will lead to a reduction of the dnig and machinery in our industry. For exam­ this proposal. It would get our youth inter­ flow into the United States and even­ ple, a modem loom in 1975 sold for $34,000 ested in civil defense and begin to make the tually prove to be a valuable step and today it is selling for $72,000. public aware of a very worthwhile and toward controlling drug abuse. in this If we are to continue as a Yiable industry highly effective study. _country. directly employing nearly one million work­ Sincerely, This bill would also provide incen­ ers, the textile industry must make substan­ tial investments in new equipment to take iKE SKELTON, tive for individuals to come forth with account of or adjust to technological Member of Congress.e information leading to the arrest and changes, foreign competition and shifts in ·conviction of drug offenders. The Sec­ market demand, and to combat air. water. retary of the Treasury would be au­ and noise problems. SUPPORT. OF H.R. 5961 thorized to issue rewards of not more The textile industry has demonstrated than $250;000 and no more than 25 one of the highest equipment spendinc HON.CHARLESB.RANGEL percent of what was confiscated. ratios of all U.S. manufacturing Industries. Providing information ·· to law en­ During 1976-77, 78 for instance, the textile OPNEWYORK industry spent an average of 80 percent of IN THE HOUSE OF REPRESENTATIVES forcement officials is a very dangerous its retained cashflow for new plant and business and one cannot realistically equipment in the United States. This com­ Tuesday, March 18, 198Q hope · ·for informants to come forth pares with only 56 percent for all U.S. man­ e Mr. RANGEL. Mr. Speaker, I would ·solely on the basis of good conscience. ufacturing industries. like to take this opportunity to ex­ I am certain that this cash incentive A continuing high level of employment in press. my support of H.R. 5961, a bill to will lead to a significantly increased our industry with facilities in all but ·one , amend the foreign transaction report­ number of convictions for. those par­ state is dependent upon high and sustained ticipating in drug-related offenses. level of capital investment, which, in turn, ing act, the Bank Secrecy Act. The depends upon the availability of funds. three provisions of this bill propose to: Finally, this bill. is 4esigned . to cor­ Faster depreciation write-Off for tax pur­ First, make. it a violation of law to at­ rect an oversight in the Banking Secu­ poses will be of some help in this area. tempt to transport more than $5,000 rity Act of 1970. The courts have inter­ Sincerely, without filing a report stating that preted this law to inean that one who W. RAY SHOCKLEY, you are about to do so, second, give leaves the country with $5,000 or more Executive Vice President customs officials the authority to cannot be arrested until after he has Enclosure. search for illegal currency on· grounds left the country, at which point the REsoLUTioiC other than probable cause and, third,. authorities are powerless to take any The American Textile .ManufactUrers In- authorize the Secretary of the Treas­ action. stitute, recognizing that the industrial sinew ury to pay a reward for original infor~ Gentlemen, the merits of H.R. 5961 of America has been permitted to weaken mation leading to the recovery of a are very substantial and I urge the seriously, resulting in record trade deficits, criminal fine, or a civil penalty or for­ support and passage of this bill.e declining productivity, reduced research and feiture. development, and worsening inflation be- cattse of improper fiscal and tax policies, This revised Bank Secrecy Act wo.uld hereby endorses the Jones-Conabie Bill and permit customs officials to search for urges the Congress to reorient priorities so · illegal currency in the same manner in WHITE HOUSE DROVERS PULL that its passage is accomplished without which tl;ley currently search for other ALL STOPS FOR DRAFT REGIS­ further delay. The benefits of this legisla- contraband. Presently, the law does TRATION tion will accrue to the u.s. defense .poature, not permit a search for illegal curren­ to exports, to employees, consumers and cy for reasons other than probable . HON. PATRICIA SCHROEDER taxing entities as well. In our view faster de- cause. This means that illegal curren­ prectation of plant and equipment is not a cy is not subject to the same scrutiny OF COLO~ tax cut; rather it is a tax deferral and as IN THE HOUSE OF REPRESENTATiVES . such does not add to inflation.e that other illicit materials are. Mr. LA· FALCE'S bill WOuld· eliminate this dis· Tuesday, March 18, 1980 . crepency and could prove instrumen­ e Mrs. SCHROEDER. Mr. Speake:t, tal in curbing international drug traf- inflation and balancing · the budget NUCLEAR WAR SURVIVAL ficking. · appear to· have taken a back seat to SKILLS .As you· are probably well aware, drug . draft registration ·as. the· administra­ abuse in this country has reached tion's top ·Issue. Or at least that is the HON. IKE SKELTON staggerlrig proportions. By monitoring word from the White House congres­ OF MISSOURI the movement of large amounts of sional drovers. It is good to know they IN THE HOUSE OF REPRESENTATIVES currency acro8s our borders, law en­ have their priorities in order. forcement officials could prevent. Tuesday, March 18, 1980 This is the same administration that mueh .of these funds ·from being in­ told us last. August that· draft registr~ e Mr. SKELTON. Mr. Speaker, I vested in narcotics · and other illicit tion was not needed and would consti­ would like to make my colleagues substances. As my distinguished col­ tute· a burden on o:ur Nation and its aware. of a proposal I have made to league Mr. LAFALCE has stated: youth. OX:XVI-364-Part 5 5774 EXTENSIONS OF REMARKS March 18, 1980 The article from the Saturday, munity during these many years, a On February 27. the Columbia Mis· March 15, 1980, Washington Post, fol· dinner will be held in his honor on ·sourian published ·an editorial com­ lows: March 21. Because this man has memorating the life of this outstand· WHITE HousE PuLLs ALL STOPS m PusH roa indeed made some outstanding contri­ ing public. servant. I include this arti· DRAFT SIGNUP butions to the people and the city of cle herewith for reprint in the CON· Hawthorne, I would like to join in .sa· GRESSIONAL RECORD, and, in SO .doing, I The White House has taken the unusual luting him by recounting his career in extend my- sincere condolences to step of ordering congressional lobbyists Parks and Recreation, and his involve· Mick•s lovely wife. Sharon, and to the from all across _the government to press ment in civic affairs. entire Missouri University community. their House friends to support draft regis­ Hal Chauncey started with the De· Maj. Mick Deaver wlll be greatly tration. partment of Parks and Recreation in "We've done this kind of thing before," missed by all who knew him. part time service. Since that begin­ The editorial follows: one administration official said yesterday, ning, however, he was involved con-. "but we save it for the big ones." stantly and valuably in several of the :M.U. POLICE DEPARTMENT'S MAJOR MICK Getting Congress to go along with regis­ DEAVD- Is FRIEND THAT WILL BE .MISSED tering. 4 mlllion 19· and 20-year-old males, important events in the city's history. BY ALL . starting this year, has thus been put in the This includes completion of the Haw­ category of "must win" by President Carter. thorne Youth Camp, formation of the We all lost a friend Monday night." He has given up on getting Congress to au­ Club Ounga Din and Youth Canteen, He was Major Mick Deaver of the Univer· thorize the registration of women. the development and construction of sity Pollee Department, who was kllled in a The full-court press on House members the memorial center, and the organiza. two-car collision on Route B. He was 38. was ordered on Monday at a meeting of ad· tion and supervision of the night ath· Since 1971, Mr. Deaver- had served the ministration lobbyists in the White House people of Missouri and the students of the called by Frank B. Moore. Carter's chief li· letic program in Hawthorne. He is somewhat of a hero at o·ur University in several law enfo.rcement posl· aison officer with Congress. Gary L. Fon- tions. He was *leader in-bringing innovative . tana from the Office of Management 'and local high school, Hawthorne- High, crime techniques to mid-Missouri. Budget outlined the game plan for draft where he has led football . teams to registration, according to participants. many championships as head c.oach. · Mr. Deaver's expertise in dealing .wltlt Carter's plan to issue. an executive order people showed professionalism. His efforts He also has been head coach of the helped make the University one of the na· to require men to register at their local Post school's baseball 'teams. .A!J. a teacher­ Office is meaningless until he receives the tion's · leading schools in working with money from Congress to finance it. coach at the school for over 21- years crowds effectively. A House Appropriations subcommittee, on he displayed a deep and sincere con­ Many stories apeak to Mr. Deaver's exper· an 8-to-8 vote, last month refused to ap. cern for youth. He taught health edu­ tise in crowd management.- Several years prove the $13.3 mlllion in fiscal 1980 funds cation dealina' with drug abuSe, and ago, a snowball fight between a University needed to start. The White House is trying even wrote a textbook on the subject residence hall and a fraternity on College to persuade the 54-member Appropriations which is used by many school diStricts. Avenue erupted into a full-scale altercation. Committee to reverse that decision. · His involvements in the community Motorists were-caught in the middle of the Besides the political opposition, registra· have extended into other areas. He warring factions. Pollee :were called. Guns tion has bumped into the fiscal 1980 fund· were drawn. Pollee cars went squealing ing ceiling Congress imposed on itself. So has served through the years as a member of the Hawthorne Breakfast toward spectators and participants. The ten· Chairman Jamie L. Whitten of the sion between the two groups .and the ten· Appropriations Committee is contemplating Optimists, of which he is currently sion between pollee and the two groups a resolution to transfer the $13.3 million president; the Rotary Club; and as a reached a fever pitch. It ·was at that point from the Pentagon to Selective Service to charter member of the Youth Camp MaJor peaver arrived. stay under the ceiling. Committee. He got leaders of the fraternity and the A coalition of national organizations is Mr. Speaker, surely the night of mobilizing to stop that resolution and any residence hall together to discuss the snow· other measure that would finance draft reg­ March .21 will be a ·memorable one for ba.ll fight. He helped the leaders of the two istration. Antidraft leaders are organizing a Hal Chauncey and his family. It will groups agree on a proposal to have a snow­ demonstration in Washington for March 21. also be an important one for the com­ ball fight ·the next day with' Mr. Deaver as Patrick Lacefield, a coordinator of Nation­ munity of Hawthorne, since as it will referee. He then dispersed the police. One al Mobilization AgainSt the Draft, said yes­ offer an opportunity for all who know man turned a disorderly mob into a calm terday that antidraft demonstrations will of- this man's good work to express crowd ready to disperse. take place in Carter campaign offices all their appreciation. And there is indeed That was the essence pf Mick Deaver's across the nation between now artd the so much to thank him for. 1tyle. This incident presents a splendid ex­ March 22 Washington rally. ample of Mr. Deaver's character. Carter's draft registration ·plan ran into My wife, Lee, joins me· in saluting this fine citizen for his admirable .For indeed in all respects, Mr. Deaver was skepticism on Monday when a Senate Ap. an innovative administrator in working with proprtations subcommittee took its first career in public service and his dedica­ people. He cared. In most ·bureaucracies, look at it. Chatnnan William Proxmire has said he happiness, and prosperity·• wm organize a fi)ibuster to try to stop 'any people; but those most affected by his pass­ bill to finance registration. ing probably will be University students. Mr. Deaver once said. "I want students to The Senate is expected to hold back on MAJ. MICK DEAVER any further action on the registration look on the pollee as more of a service orga-· money bill under after the House acts.• nization .rather than enforcers of the lavi." HON. IKE SKELTON Mr. Deaver's work exemplified serVice. Be­ cause of that work, students began looking HAL CHAUNCEY OF MISSOURI at the pollee department as servants who IN THE HOUSE OF REPRESENTATIVES care about people and not law enforcement HON. GLENN M. ANDERSON Tuesday, March 18, 1980 machines. OF CALIFORNIA Students not only liked Mick· Deaver, they IN THE HOUSE OF REPRESENTATIVES e Mr. SKELTON. Mr. Speaker, many respected him. There are few administrators University of Missouri alumni were Tuesday, March 18, 1980 or law enforcement officials who could greatly ·saddened to learn of the recent claim they did their jobs well and were still e Mr~ ANDERSON of California. Mr: loss of Maj. Mick Deaver, who died on liked and respected· by those with whom Speaker, at t:Pe end· of this month, Hal the 25th of February. Mick was an ex­ they worked. Mick Deaver ~ould. Chauncey will retire from the Parks tremely well liked and highly respect· It is unfortunate more people are · not· and Recreation Department of the ed member of the university police de­ public servants ·in the mode aild class of city of Hawthorne after 30 years of partment, and~ in that role, had Mlck Deaver. - service. As an expression of. apprecia· become an integral part of the unlver· Major Mick Dea1ter. A Jriend. We all will tion for all he has done for his com- sity community. miss hlm.;e March 18, 1980 EXTENSIONS OF REMARKS 5775 OVERRIPE CASE AGAINST problem .posed fn definfng fair value for per- strictions: their mail and telephone MEXICAN TOMATOES ishable commodities like winter vegetables. communications are censored. They Though the market for fresh vegetables is are denied access to governmental highly competitive, sellers certainly don't service, and while they can attend the HON. MORRIS K. UDALL · routinely expect to aell below cost. If they universities, their numbers and fields did, they wouldn't stay fn business. But once OF ARIZONA a crop is on the vine, each grower-Mexican of .study_ are · restricted. The Syrian . IN THE HOUSE OF REPRESENTATIVES or Floridian-has little choice but to sell it Government appoints non-Jewish di· Tuesday, March 18, 1980- at the going price. rectors to supervise Jewish schools According to Senator Kennedy, the chair- and foreign travel is severely limited. • Mr. UDALL. Mr. Speaker, the New man of the Senate Judiciary Committee, In short, Syrian Jews are among the York Times today carried an excellent and influential House members, it was never most persecuted people in the world, editorial regarding the Commerce De­ Congress's intent to prohibit imports Just f i · d i · f partment's investigation into the al­ because they were priced below cost. After ac ng serious an gross v olattons o leged dumping_ of . Mexican wiriter reviewing the Florida growers' request for their human rights in their native vegetables in the United States. This protection last November, the Treasury. land and ·yet they are not permitted to investigation began in December 1978 reached the same conclusion. To determine leave. when the Florida tomato industry fair value, it chose instead to compare the I wish to take this opportunity to ex­ filed dumping petitions with the De­ price of Mexican vegetables in the United press my severe disapproval of the States with the price in Canada, Mexico's Syrian Government for violating the partment of the TreasurY', which then other large market. Since its investigation human rights of their Jewish commu­ had authority over these cases. The produced no evidence of price-cutting, the · nity.e tentative determlhation,· handed down Treasury argued that domestic growers had October 30, 1979, found that there was no real claim. no dumping of any Mexican winter By a legal Quirk, however, the Florida pe­ ANATOLY SHCHARANSKY vegetables in' the United States, that titioners are getting a second chance-this prices for this produce were the· same time before the Commerce Department, in the United States as they were in which took over the Treasury's responsibili­ ty for anti-dumping cases fn January. Nei­ HON. SHIRLEY CHISHOLM Canada, that the Florida charges were ther the issues nor the evidence have unfounded. - changed, but there Ia some reason to believe OF NEW YORK The Commerce Department is now that the Commerce Department's lawyers IN THE HOUSE OF REPRESENTATIVES proceeding with the final . determina­ are more sympathetic to the Florida grow­ Thursday, March 13, 1-980 tion, and there is some evidence that ers' narrow case; Commerce may abandon the analyt­ A victory for the Floridians would hurt e Mrs. CHISHOLM. Mr. Speaker, by Ical method used by the ·Treasury De­ the country, economically and diplomatical­ now all of us are familiar with the partment to determine fair market ly. Blocking the import of winter vegetables trials, accusations~ and inquisitions value. As the Times. editorial clearly would drive up food prices at a time of dis· which finally led to the arrest of Ana- . tressing inflation. Crippling Mexico~s vege­ toly Shcharansky. The KGB, which points out, nothing has . changed in table iitdustry would hardly promote Mexi­ this case, the characteristics of the can good will-on which, among other conducted these investigations, never vegetable trade are the same today as things, the future northward flow of Mexi­ established any reason for the trials they were 6 months ago, and the argu­ can oil may depend. Let us hope the Com­ other than the fact that Mr. Shchar­ ments that the Treasury Department merce Department considers the conse­ ansky worked to assert his rights and found so persuasive then still hold quences before deciding how many Mexican those of all Soviet Jewry. today. tomatoes can fit through the eye of the pro­ This past Saturday, March 15, 1980, With inflation already reaching 18 tectionists' needle.e marked the third anniversary of the percent this country little needs the .arrest of Mr. Shcharansky in 1977 for higher food costs that would be caused his alleged involvement with other SYRIAN JEWS: HOSTAGES OF Soviet dissidents who supposedly by a restriction of imports of Mexican TYRANNY vegetables. Many of my colleagues worked for the CIA. have recognized this and have joined For those of us in this country who me in urging -the Commerce Depart-, HON.CHARLESB.RANGEL are free to travel, speak openly and ment to . come up with a realistic OF NEW YORK critically against the Government in ruling. The u.s. State Department has IN THE HOUSE 01' REPRESENTATIVES - w~ys that we choose, it is hard for us to fathom the suffering endured by consistently recognized the detrimen­ Tue1day, March 18, 1980 tal effects that a . positive dumping those people under this kind of repres­ ruling could have on United States­ • Mr. RANGEL. Mr. Speaker, I would sion. It is also diffi~ult for us to realize Mexican relations. And I have seen no like to bring to the attention of the . the importance of the Helsinki agree­ evidence at all that imports from public and my colleagues the tragic ment and its implications for human Mexico llave hurt the Florida tomato plight of the Syrian Jewish communi- rights for those individuals living industry, which is actually expanding. ty. . under Soviet dominance. This agree- A positive determination of dumping, These people are being held hostage ment offered hope that these people which could only occur through a by the Syrian Government. Because would be able to · enjoy the benefits drastic alternation of the· Treasury they are Jewish they are not permit- and entitlements of full human rights. Department's analytical model. would ted to emigrate from Syria, making The last 7 years for Mr. Shcha­ . be against the interests of Just about this Arab Republic the only co·1ntry, ransky, a mathematician and a physi­ every American. I commend this edito~ eve? among nations · hostile to Israel, cist by education and training, have rial to my colleagues' attention: which deniea ·Jews this basic right. been years of torture by denial and OVERRIPE CASE AGAilfST MExiCAN TOMATOES Even the Soviet Union, albeit begrudg- unfulfilled promises. Mexican fa.rms supply · about half the ingly, permits some Jews to emigrate. The first denial Mr. Shcharansky fresh tomatoes, cucumbers, eggplants and Those caught trying to gain their free- encountered began in 1973 when. he squash consumed each winter in the United dom have been severely punished in- first applied for a visa to emigrate to states. Florida farmers, who ~upply the eluding beatings, tortures, and incar- Israel. Permission was refused on this rest, don't like the competition. And now ceration. There have also been reports first application because it was said they are attempting to exploit an ambiguity of Jews being shot during their· at- that h~ had access to classified materi­ in the trade laws to grab the whole .market tempts to flee Syria. al at his job at the research institute. for themselves. It is up to the Commerce In addition to being prohibited from However, the moment he became eligi­ Department to stop them. · Amerlca'a anti-dumping law prohibits the emigrating, Syrian Jews have had ble for a visa, Shcharansky avoided sale of imported goods below "fair value," other basic human rights either doing any classified work so as not to which is defined as the cost of production. denied or severely _curtailed: Jewish Jeopardize his emigration statUs. Production costs can, within reason, be identification papers are specially In 1974, he again applied for another measured for most foreign goods. But Con~ marked "Musawi" . politiCal oppression in the Sovi~t budget was only $440 billion, inflation Prayer shawlS and other Jewish devotion- Union who look to us not only for sup- was only arourid 4 percent, and gaso- al articles are not allowed to be produced. port, but who see us as the last best· line was only a third of what it is Almost no contact with Jewish coreligion- hope for .mankind. In conscience, we today. In 1977 America was still No. 1 ists is allowed. This is in contrast to the ex- periences of other faiths in the Soviet can do no less.e in military strength in the world. The Union: Eastern Orthodox, Protestant, B-1 bomber wa.S about to usher in the Catholic, and Moslem. needed· new generation of weaponry Jewish cemeteries are regularly desecrat- KEN HARDING for maintaining the strategic edge· ed. Historic· Jewish gravesites have been over the Soviets. In 1977 we still had bulldozed. formal relations with Taiwan, we had Virulent anti-Semitism is everywhere. HON. FRANK HORTON kept our word to help Israel, we were Jews and Judaism are constantly the target supporting frl·endly governments in of anti-Semitism in the media. · OF NEW YORK Young Soviet Jews ·are deprived of getting IN THE HOUSE OF REPRESENTATIVES Iran, Nicaragua, and the Caribbean is- any kind of Jewish education and religious lands. Three years ago people of instruction. Tuesday, March 11• 198.0 . America could afford new houses and Soviet Jews can no longer get good jobs in • Mr. HORTON. Mr. Speaker, it is could buy a tarik of gas whe~ they the USSR in contrast to only a few years with great prid~ that I join my · col- wanted to without spending major ago. Some universities now have quotas. leagues in paying tril;mte to th.e distin- portions of their salaries. There was Those Jews who have jobs are liable to guished service of Ken Harding. As optimism in the Nation, an optimism lose them-immediately upon applying for Ken leaves his office of Sergeant at that has been destroyed with 3 years emigration visas. . . For Jewish activists, arbitrary arrest, beat- Anrul, he caiTies. with him. an un- of Jimmy Carter.· ings, and interrogation are common. matched record of outstandbl.g_service Today things are very different. We Due process for Jews in eourt proceedings· and dedication to the House of Repre- have watched a healthy economy de­ which are emigration-related is next to non- sentatives. · molished by Carter and compa.ri.y. We existent. · Ken's record of service in the House have· watched a str~ng . · Americilo Civil rights, social rights-the right to · spW three decades. The relJutation of become a disarmed Nation that turns v:ork, cultural rights, freedom of educa- honesty and integrity he earned as ex- its back on. friends and allies in the tiOn-,..have been taken from Soviet Jews. In ecutive director of the Democratic hopes to buy time in avoidinu confron- denying these hutnan rights Soviet author!- . · ,.. ties are blatantly violating the Helsinki Congressional Comm1ttee ably pre- tations with our enemies. We have agreement, accepted international law, its pared him for his duties of Sergeant ~;~ot seen the· vigor and optimism of just a own internal legal system and the minimum Arms. He assumed these duties in the few years ago vanish in the wake of decent behavior of civilized people.. · 92d Congress, on October 1, 1972. record inflation and interest rates to 5778 EXTENSIONS OF REMARKS March 18, 1980 the point where some of the most pro- example, is used in a number of spe­ ANATOLYSHCHARANSKY ductive members of society are using cialty steels from superalloys to high all of their energies to just survive speed tool steels, abrasion resistant from one paycheck to another. Final· plate, and tool and die steels. Cobalt is HON. PHILLIP BURTON ly, we had to watch the spectacle of also vital to steel production not just the President's latest act of despera- as a component but as a part of the. OF CALIFORNIA tion as he scrambled to balance the · process of making. steel. Cobalt adds IN THE HOUSE OF REPRES~ATIVES budget and to stop inflation. important properties necessary in Thursday, March 13, 1980 I honestly do not know where to drawing, forming, extrusion, and forg­ e Mr. PHILLIP BURTON. Mr. Speak· begin in assessing the tragedy of last ing dies. Cobalt is · used in component er~ Anatoly Shcharansky has now Friday. Carter has become a pathetic parts ·in rolling mills, punch and forg­ spent 3 years in a Soviet prison since creature who, stripped of media hype, ing mills, presses of various kinds, and ·being arrested and convicted of false is grossly unable to handle the job he in high-stress sheering and cutting charges of treason. Although events in was narrowly elected to in 1976. The machines. . Iran and Afghanistan have over$had­ budget cuts are superficial at best. Recently, Chairman JAMES D~ SAN· owed the plight of Mr. Shcharansky They barely make a dent in the more TINI of the Mines and Mining Subcom­ and other Soviet Jews, ·we cannot let than $34.6 billion in new spending au- mittee wrote to all members of the the world forget this terrible injustice. thority he put in the fiscal year 1981 steel c~ucus ·· concerning cobalt and its Anatoly Shcharailsky now lan· budget only 2 months ago. Where does importance to the steel industry. I guishes in a Soviet prison, reportedly he make up the difference to "bal· find his letter to be instructive and in deteriorating health, separated ance.. the budget? He opens the flood· helpful and thus place it at this point fro:Ql his family in the Soviet Union gates for yet another round of power in the RECoRD. I urge my colleagues to and his wife, Avital, in Israel. He has grabs by the Federal Gavemment. His carefully consider Chairman SANTINI'S . had virtually no contact with his tax on imported oil will be the knock· views as the matter of the River of No family and . friends for the past . few out blow to consumers who have al· Return Wilderness bill comes before months and Soviet authorities have ready taken it on the chin from the the full House. failed to respond to repeated requests windfall profits tax. For those who CoMMITTEE oN INTERioa that he be.allowed even minimal legal manage to stagger to their feet from AND INsULAR AFFAIRS, and moral rights. the energy one-two punch, Carter has Washington, D.C., March 12,1980. I met Mr. Shcharansky in the Soviet a new withholding tax on interest for DEAR STEEL CAucus CoLLEAGUE: No one diS·· Union several years ago and more re­ savings and dividends. This should putes that eobalt Is a vital, indlspensible · cently, his wife, Avital, was a guest in knock all but the very wealthy out of component of America's increasingly sophis­ our home. I can personally attest to the ring of economic stability for years ticated national defense system. ·Essential in the unjust persecution he suffered to come. As if this was not enough, the production of high speed, high perform­ even prior to his arrest and incarcer­ Carter is letting interest rates contin· ance aircraft, missile controls, tank preci­ ation. ue their climb, destroying forever the sion rollers, armor piercing shells and con­ This sad anniversary, and the recent dream of many to own a home. ventional and nuclear propulsion systems, cobalt use has historically increased dra· shocking arrest of Soviet Nobel laure­ The package of so-called cures that matically during periods of defense moblll· ate Andrei Sakharov~ serve '8.S remind· was presented this weekend amounts zatton. ers that we must continue to do every­ to euthanasia for the middle class of What few recognize, however, Is the inte­ thing in our power to insure the basic the United States. Thankfully the gra1 role of cobalt in the production of steet rights of Soviet Jews.e Congress will have to act on most of Cobalt, as you .know. is used in a number of the package. There is still time for specialty steels . from the supera,lloys we sanity to seep back into the economic hear most about to a wide variety of alloys PIPELINE T~ PROSPERITY policies of the Government. When this such as high speed tool steels, abrasion re­ Chamber takes up the fiscal year 1981 sistant plate, and tool and die steels. Cobalt HON. MICKEY LELAND will still be time to right adds important properties necessary in budget there drawing, forming, extrusion and forging OPTEXAS , the grievous wrongs dealt the Nation dies. It is used in component parts of rolllng IN THE HOUSE OF REPRESENTATIVES by Mr. Carter. There will still be time. mills, punch and forging mills, presses of to unchain the vast majority of Amer- various kinds and in high-stress sheering Tuesday, March 18, 1980 lea and allow productivity to raise us and cutting machines. Cobalt Is vital in e Mr. LELAND. Mr• .Speaker, I would out of economic decline. If Congress much of what America's steel industry does. like to call to your attentloQ the cannot stand firm agafust the on- or produces. achievements of one individual who slaught of Carter lobbyists and admin- It is imperative that America have a con- , tinued, secure source of cobalt. Unforunate- has not only ·sUrvived the era when tstration promises, then the Nation ly, nearly 100 percent of our cobalt 181m- there was little opportunity for blacks will have to ·wait until November 4 ported, 73 percent of which comes from in this country, but who has far sur­ when it can take the situation into its Zaire and Zambia-hardly secure sources passed the middle echelon of life. This own hands and put an end to the given internal· and external uncertainties of man, George Smith, founder of Smith misery. I only hope it will be in time.e the former and the recent Soviet arms Pipe Supply Inc. of Houston, has built agreement with the latter. America has but his company from scratch to become one source of economically mineable the seventh largest pipe ind~try in COBALT-A MINERAL VITAL TO cobalt-:-near the Blackbird mine in Idaho. AMERICA'S STEEL INDUSTRY Unfortunately, efforts are currently under- the Nation. His success can be ·attrib­ way to include in wilderness about one-halt uted to his great determination to be of the "cobalt trend" near that mine, thus independently successful. HON. DAN MARRIOn making impossible the full exploration and Mr. Smith's first experJence with OF UTAH development of that resource. the oil industry in 1951 threatened his lN THE HOUSE OF REPRESENTATIVES The Interior Committee recently voted survival as a black man physically, 23-15 to exclude that area from wilderness psychologically, and financially. But, Tu.esday, March 18, 1980 to ensure that exploration and development this man's reputed energy and undy­ of deposits within the area will have a rea­ e Mr. MARRIOTT. Mr. Speaker. we sonable opportunity to take place. In order ing goals have since been a true inspi­ have heard and read much in recent to protect the role of America•s·steel indus­ ration. 4ays regarding the need of America's try while assuring the viability of our na­ I want to 'take this opportunity to defense system for cobalt: for jet en­ tional defense system, I urge you to vote to thank Mr. Smith for serving as a gines, armor piercing shells, and nucle­ preserve the Interi9r Committee decision to model for ·me and many blacks in ar propulsion systems, to name but a keep cobalt out of wilderness. · Texas on what can be accomplished few. · Sincerely, with enough determination. I am ex­ What many fail to realize, however, JAMES D. SANTINI, tremely proud to have George -Smith is the indispensible nature of cobalt in Chairman, Subcommittee on as one· of my conStituents and to call America's steel industry. Cobalt, for Mines and .Mining.e him my friend. · · March 18, 1980 EXTENSIONS OF REMARKS 5779 Mr. Speaker, I would like to request way off relief by letting recipients keep and Louisiana, cleaning and testing pipe. that the following article be inserted some of their welfare money during the Sheij and Exxon were his first customers. which vivi¢lly illustrates the car..eer of first year they are employed. AT NIGHT AND ON SUNDAY this remarkable gentleman: Hard work is a habit Smith was forced to The day after Smith quit Seaboard, three develop· early. Growing up in Livingston, 69 A PIPELINE TO PROSPERITY of his men, all black, left to join him. More miles north of Houston, he helped support came within a few weeks. With his reputa­ his family almost from the beginning. tion for dependability and hard work, Smith For a black man to make it in the oil busi­ Smith's natural father died when he was had no trouble lining up jobs to keep his ness takes true grit. George Smith has it. three months old; his mother remarried but crews busy. Ken Stocks, a Conoco vice presi­ Though he endured aching years of being left her second husband when George was dent who buys pipe from Smith, says: called nigger by whites and Uncle Tom by six. Thereafter he did all .sorts of meni.al "Whether it's at night or on Sunday or blacks, his tenacity in trying to succeed in a jobs-from cleaning neighbors' privies to whenever, you can count on Smith. to come picking peas and cotton-to help his mother white world has been richly rewarded. through. That H attitude reflects right Over the past five years Smith has built support her six children. Sometimes the through his company." one of the largest black-owned businesses in Smiths had difficulty getttng enough to eat. By using his savings to meet his first pay­ the ·u.S.-from scratch. Two years ago, "Back then I thought the feet were the tast­ rolls, Smith was able to reinvest almost ev­ Smith Pipe & Supply Inc. of Houston, iest pari of the chic.lten,'' Smith remembers erything he made. He paid himself a meager which sells and services the pipes and fit­ ruefully. After third grade he left school to $700 a month. He now boasts: "I didn't take tings used in drilling oil wells, took in $6 'Work full time at his various jobs. out any Small Business Administration million and made a net profit of $51,000. It As a .teenager Smith joined the Army Air loans and I didn't borrow from any bank. I was then the 68th largest black-owned com­ Forces and serVed on the Pacific islands of am living proof that it can be done the hard pany in the U.S. In 1978, with revenues Guam and Saipan. When World War II was way." Smith did get a little help from his gushing to $24 million and profits to · over, he worked as a section hand for the friends, though. Conoco let him have $282,000, Smith Pipe had become the sev­ Southern Pacific railroad. In 1947 he mar­ $'44,000 worth of excess pipe on credit ("I enth largest. The next ranking-it's com­ ried Evie Lee Flournoy, promising her par­ never signed anything, just gave them my piled each spring by Black Enterprise maga­ ents he'd support her while she finished col­ word I'd pay,'' Smith says proudly), so that zimi-is likely to show a further advance. lege. She was attending Texas Southern he. ·could get into the business of selling pipe The company's 1979 revenues rose to $31 University in Houston, preparing to be a as well as serv.icing it. miMion, with a bottom-line profit of teacher. Testing pipe demands more workers than $400,000. Smith's own net worth has 'In 1951 Smith took a pay cut to switch selling it. That part pleases Smith, who climbed to $4 million. He boasts that within from railroading to the oil industry. which feels a responsibility to create jobs, especial­ three years he will own the most successful he felt offered a better future. As a railroad ly for blacks; currently, 53 of his 91 employ­ black business in the U.S., with annual sales clerk he'd been making $1.46 an hour; labor­ ees are black. The profit margin in testing is of $100 million and $2.5 million in profits. ing in the oilfields, he got $1 an hour. Smith higher too. Last year· only 8 percent of IN HIGH GEAR had been with his first company just a year Smith's revenueli came from testing, but when some of his bosses quit to form Atlas they produced 25 percent of his profits. Yet If George Smith sounds like a young man Pipe Inc., which supplied material to oil selling brings by far the more rapid growth in a hurry, he isn't. He's 53 years old. "If I drillers. He joined them and stayed 18 years. in revenues: of Smith's $31 million last year, was white, I could have done this years $28.5 million was generated by selling pipe. a&O," he declares. "But for a black man, the A PSYCHOLOGICAL BURDEN During the years when Smith was working time just wasn't right." Now that his time Working around oil wells is grimy and at Seaboard and hoping to go into business has arrived, Smith is in high gear, especially often exhausting. For Smith, being black for himself, he had tried to persuade major behind the wheel of his Cadillac Eldorado. added a psychological burden. "In the '50s pipe manufacturers to let him distribute He got so many speeding tickets-one of and '60s the white men said: 'No niggers out their products. Finally, in 1976, two years them charged him with going 98 mph-that here,' " Smith says. "I was never beaten up, after he started Smith Testing, Youngstown the police once threatened to have his driv- but 1 was threatened. 1 refused to be intimi­ Sheet & Tube gave him a chance. The fol­ er's license lifted. It's doubtful if even that dated, though. 1 was . one of the very few lowing year Smith's line expanded greatly would have slowed him down much. blacks who could go into the oilfields." when U.S. Steel also took him on as a na­ The owner ·of a company with offices. or warehouses in five states has to do a lot of He became proficient at testing oil pipe, a tional distributor. That's when. his revenues things well. What Smith does best is sell. process of simulating oil pressure by pump- took off like a newly drilled gusher. ing water and air into sections of pipe. His Last year he logged 350,000 miles calling on skill made him aspire to more challenging SALES OUT OF CONTROL companies that buy his pipes and fittings. and lucrative work. But for years, he feels, Early last year, in fact, they seemed to be Left behind in Houston was Evie, Smith's his race kept him from moving up. For in­ dangerously out of control. When it looked wife of 32 years, who is also his vice presi- stance, if he'd been put in charge .of Atlas' as though 1979. sales would hit $40 to $50 dent and alter ego. Smith's long stretches quality-control operation, a job he felt he million, Smith's lenders canceled his $1.2 away from home strain them both. "After could handle, 150 white workers would have million line of credit. They feared that he so many years of doing everything together, could 110t keep sufficient control over such a it's difficult now," Mrs. Smith laments. "But been his subordinates. "They would never · rapid expansion. Smith and ·Charles L. I know what George's .goals are and we can't have stood for that,'' he says. Thornton, his chief executive officer, spent stop now." Admits .Smith: "Staying awb.y During the frustrating years he spent ap­ several nervous weeks before rounding up a from my family is .the hardest thing 1 do." prenticing in a white man's business, Smith bank and a commercial credit' company to . To be together, the Smiths abnost have to also -encountered the enmity of more mili­ provide $4 million in credit. Subsequently, leave the country. They have just returned tant blacks. "But while they were calling me by not going after as much new business as from a $6,000, 1S~day tour of Egypt. Jordan, Uncle Tom and worse, I was. learning. I had they had intended, Smith and Thornton Turkey and Israer, plaees that appealed to the Idea that one day I could have my own held pipe sales to $28.5 million. Evie Smith. Already they're planning a business." The durability of his enterprise seems of spring vacation in Italy, France and Spain. Finally Smith gave Atlas an ultimatum: more concern · to Smith than short-term In the past two years they have been to either a · promotion to quality control or to profits. "It's time blacks started b·uilding Africa and Asia, Mexico and the Caribbean. sales--or he'd quit. They cou,ntered with an companies," he says. "When I die, I don't A vacation with George Smith has always offer of assistant personnel manager. Smith want to have it said that all I did was make been-physically demanding. "When the kids walked out. On Jan. 5, 1970 he joined the a lot of money." ·The company has been were ·little,'' his wife reports, "we took driv- competing Seaboard Pipe & Equipment Co., good to Smith and his family, though. The ing trips around the country. The children first as an appraiser of used pipe, later as five of.them earn almost $150,000 a year in would complain, 'Daddy, we're on vacation. general manager of the pipe testing division. salaries from Smith Pipe. As president, Why do ·we have to get up so early?"' Keep- He stayed with Seaboard 4lf2 years, ulti­ Smith pays himself $66,000. . ing up with Dad still isn't easy for Charles, mately earning $27,000 a year and emoying Nowadays, Smit),'l's position shields him 31, George Jr., 27, and Jacquelyn, 2_6, all of such perquisites as a new company car each from racial slurs. And his fortune lets the whom now work for their father's company. year. But more and more he yearned to run Smiths live well. Travel is their most expen­ A man of imposing vigor, Smith rises at a business of his own. At length, a. disagree- sive diversion, but not their most passion­ 5:15a.m. and frequently begins his frenetic ment with his boss impelled him to quit ate. "Every man has to know what his workday over breakfast with customers. He - Seaboard and launch Sm~th Pipe Testing & outlet is and 'fishing's. mine,'' Smith pro­ finishes ·up late in the evening-after the in- Service Co., now a subsidiary of Smith Pipe claims. He owns six boats. The sleekest is a evitable dinner meeting. Yet Smith is nei- & Supply. · $200,000, 42-foot Hatteras docked in Galves­ ther dour not driven, just energetic. He be- Relying on his wife's $12,000 teaching ton and used for fishing in the Gulf of lieves hard work will solve almost any prob- salary to support the family, he took $4,000 Mexico. But Smith's favorites are two un­ lem. Lately he has presented to ·a member of out of his savings to get started. With pretentious bass boats he keeps at Lake Liv­ the Congressional :Slack Caucus a proposal rented equipment and Mrs. Smith's car, he Ingston, where he retreats each Saturday to encourage welfare recipients to.earn their traveled the oilfields of Texas, Oklahoma he's home for a session of catfishing, quite 5780 EXTENSIONS OF REMARKS March 18, 1980 often accompanied by Mrs. Smith. Pulling ly with the committee in a number of SUPPORT OF DISTRIBUTING in 35-pou.nd catfish is not uncommon. He problems areas prior to his retirement COMMODITIES DIRECTLY TO usually gives the catch to churches to use SCHOOLS for fish fries. · because of. his expertise and experi­ The Smiths have kept their sudden ence in scientific endeavors. He . wealth from uprooting their lives. . Smith became a powerful force for American ·HON. FREDERICK W. RICHMOND points out: ... I still go to the same church scientific achievement, especially in OF NEW YORK [Wayman Chapel of the African Methodist the area of space exploration. When IN THE HOUSE OF REPRESENTATIVES Episcopal Church. where he is a trustee], I man first landed on the moon in 1969, still love the same woman. And we still live Tuesday, March 18, 1980 in the same. house." it was an achievement w_ith which Hal Well, sort of. With remodeling and addi­ Gould was vitally linked. e Mr. RICHMOND. Mr. Speaker, tions, the little Cape Cod they moved into One of the things that impressed me today I had the opportunity to testify in 1954 is now twice as big and three times the most about Hal Gould was his before the Subcommittee on Elemen­ as comfortable. The neighborhood hasn't tary, Secondary, and Vocational Edu­ improved, though. The Smiths live in candor and forthrightness. No one cation concerning the future of the Garden City, one of Houston's poorest black could accuse Hal of being a back slap­ Department of Agriculture's role in sections. Concern for their property-if not per. Long before the expression "tell it distributing commodities to schools as their lives-is an everyday fact of life. Their like it is" became popular, Hal had part of the National SchQol Lunch son George's house, next door, has been adapted this· motto to his personality burglarized twice in· the past year. Their Act. . own house bristles with locks and alarms. and way of doing things. ~or this Direct commodity distribution has Friends and business associates have reason, you always knew where Hal been a successful program for 30-odd urged the Smiths to move to a better area. stood. When a member of the Science ye;:trs, helping to bring rural and "One white man told us we could triple our and Technology Committee asked Hal urban interests together, while provid­ business by moving to a nicer house and en­ for advice or direction on an issue, re­ ing nutritional benefits to children re­ tertaining . at home a lot," Smith reports. gardle~ of whether he or she was a ceiving school lunches. Mrs. Smith disputes the contention, and in any case they aren"•t moving. Their roots in freshman or the chairman, his re­ ·For the interest of all concerned the community are so deep, they'd feel they sponse was frank and accurate. about nutrition programs, as well as were abandoning their family. Which in a History records when Gen. Robert E. maintaining important urban-rural sense they would be: Smith owns eight ties, I suggest that we work to improve houses in the area, one of which he has Lee learned of the.death of his "eyes our present commodity distribution given to his mother. another to his son. and ears," the great cavalry command­ program, rather than destroy it. er, Gen. Jeb Stuart, he looked away A TRANQUIL RETREAT A copy of my testimony follows: sadly ·and responded "·he never gave Aside from his company,. real estate Ia me a wrong piece of information." STATEMENT OP REPRESENTATIVE FRED Smith's main investment. His total portfolio RICHMOND ON H.R. 27 Those of us privileged to serve with is worth about $500.000. In addition to the Mr. Chairman, I am pleased to be here houses, he tlas acreage in several parts of Hal Gould can certainly look back this morning to strongly support the distri­ Texas. A 122-acre ranch he bought three upon his tremendous work on the Sci­ bution of commodities to child feeding pro­ in years ago Center. Texas for $62,000 pro­ ence and Technology Committee and gfams~ The argument before you today is · vides a tranquil retreat for the Smiths, be­ respond in the same manner as Gener­ not new. The Department of Agriculture's sides being an investment. Smith also o~ al Lee. responsibility for providing direct commod­ 61fa acres near his boyhood home in Living­ ity assistance to support child nutrition pro­ ston and four acre& at Lake LivingstQn Of course, we are all aware of recent grams has been questioned over the years nearby. On the lake property he wanta to by those who would prefer to see a system build a recreation center for black young­ events in this town relating to staff people giving wrong information to of cash-in-lieu of commodities, or more re­ sters. cently the local purchase of commodities · "To be successful you have to have a goal .their employer. It's refreshing to know under a letter of credit or voucher system. other than money," Smith says. "My goal is that men and women like Hal Gould Superficially, these alternative systems to give blacks an opportunity. The fact that are the rule rather than the exception appear to improve current federal procure­ tn five years I've built the seventh largest on the Hill, and we all ·can take pride ment and distribution for feeding programs, black business In America speaks for but in fact, they would destroy our commod­ itself.''e 1n this great ·exercise in honesty and loyalty, which he. typified. ity distribution network. We have a vital need to keep agricultural HAROLD A. GOULD: A Mr. Speaker, Hal Gould never really and feeding programs tied together. Ellmi­ DISTINGUISHED AMERICAN had his second retirement, although. natirig the Department's direct distribution he and his wife, Ouida, purchased of commodities to feeding programs would undermine American agriculture's commit­ their retirement home in Titusvile, ment to child nutrition programs. To isolate HON. BARRY M. GOLDWATER, JR. near the launch area at Cape Canaver­ ·oF CALIFORNIA our Nation's farmers from programs that al. It is so very sad that a man of his have over the years created a market for ag­ IN THE HOUSE OF REPRESENTATIVES vision and love· of space exploration riculture commodities can only harm the Tuesday, March 18, 1980 didn't" have the opportunity to spend a delicate tie between urban and rural inter- significant number of years observing ests. . e Mr. GOLDWATER. Mr. Speaker, As the only urban member of the House this Congress and the Nation lost a the future of a program that. he Agriculture Committee, I know the impor­ very distinguished American in the played a major role in bringing about. tance of an urban-rural coalition m achiev­ recent passing of · Col. ·Harold A. We will miss Hal Gould. The staff ing worthwhile national goals-be they the Gould, who served as deputy staff di­ and members of the Science and Tech­ Food Stamp Program or the selling of com­ rector of the House Science and ·Tech­ nology Committee who work long and modities at a fair price. nology Committee, on which I am There also is the very real risk that fur­ hard- on so~e of this .Nation's most ther removal· of the agricultural support privileged to serve as a member. pressing problems will especially miss component, namely, commodity donations, · Hal Gould epitomized the loyal, his camaraderie, advice, and friend­ from child nutrition programs will lead to hardworking congressional st~fer, shtp. ~ ·. Many of the staff members on reduced flna.ncial support for these pro­ who does not seek glory or fame, but grams. In today's budget cutting spirit, I works effectiveiy behind the scenes to the committee affectionately referred cannot -support · a proposal that. will risk promote the . best ideals of Congress to Hal as the ·~grandfather," because making nutrition programs a direct target :and our country. When cancer struck of his sincere interest in helping of budget mania. · him down at the age of 61, Hal was people with their problems. Our present distribution system helps still involved with major areas of legis­ To Hal's wife,. Ouida, and his son, eliminate waste. In Fiscal Year 1979, $700 Michael, I ' extend my deepest sympa­ million worth of commodities were procured lation with the Science and Technol­ for child nutrition programS. Of this, $273 ogy Committee. thy. Hal Gould served his Nation million, or 40 percent, were purchased ·for Hal came to the committee back in well-a man of rare courage, patrio­ market relief purposes. Because of the es­ 1965 after retirement from the Army. tism, and high ideals-a distinguished tablished commodity network, the Oepart­ The· Army assigned Hal to work close- American.e ment was able to use these commodities to March 18, 1980 EXTENSIONS OF REMARKS 5781 assist child feeding programs. This 40 per­ Mr. Chairman, as one, who like you, has four years in one school year, Dr. Bagley cent is a significant portion of the commod­ great familiarity with, and deep concerns said. ities that the Department would ha~.e pro­ for the school feeding programs, it is my The two programs that were dropped were cured regardless of their need by child nu­ considered opinion that our commodity dis­ the federal Title 1 program, which provided trition programs. The feeding programs are tribution program ·is a financial benefit to the school district with $35,374, and the dependable markets for surplus commod­ the schools and a nutritional benefit to chil­ California Early Childhood Education· pro­ ities. dren.e gram, which had provided $75,786. Under the proposed system, the Depart­ Dr. Bagley said the district made up the ment of Agriculture would have to reduce losses of that money by cutting its budgets its commodity purchases for child nutrition for supplies, maintenance and operations. needs. In Fiscal Year 1979, this procurement STUDENTS' GRADES SOAR.AFTER No staff members were cut, but were reas­ was valued at $427 million. Farmers will SCHOOLS QUIT GOVERNMENT . signed to perform other duties. ·suffer the loss of this dependable market. AID PROGRAMS · "The teachers were spending between 12 Local purchases will change the quality of and 25 percent of their time in the me.etings food our children receive in their lunches. these programs required and in t~e records Department officials examining the quality HON. LARRY McDONALD they had to keep, the forms they had to fill of food ·bought locally and food federally oF GEORGIA out," he said. · donated found the quality .of federally do- IN THE HOUSE OF REPRESENTATIVES ·"That 12 to 25 percent of the time devoted nated food consistently higher. to paperwork and meetings is now gOing Mr. Chairman. any penn.y-wise shopper Tuesday, March 18, 1980 toward full teaching energy. If any organi­ could tell us that purchases on a large scale • Mr. McDONALD. Mr. Speaker. it is zation could increase effectiveness- by 25 are cheaper than smaller purchases. The percent, you'd see a signific~t difference." Federal Government is able to purchase in a fact that as Federal aid to education Summing up, Dr. Bagley told The En­ bulk, thus costs per unit are significantly has grown SAT scores have declined. quirer: less than if purchased individually in small- Federal aid programs have brought "There are probably a lot of districts that er amounts at the local level. By way of ex- with them an ·uncontrollable amount could, if they chose, drop thes~ programs, ample, in recent years, the Department has of redtape which has necessitated the and use that time much more wisely."e been purchasing spaghetti and macaroni for hiring of extra administrators to say distribution to the States for school lunch nothing of the time our t'4!achers have programs. These items are popularly re- ceived in the schools and costs are lower to spend in filling out forms required ALLARD K. LOWENSTEIN than if States had to contract individually by HEW. This trend is unlikely to for them. change under our new Department of HON. RICHARD BOWNG Another serious concern I have with the Education as these folks wUl have a OF liiiSSOlJRI proposed system is its workability. I suspect vested interest in continuing present Of THE HQUSE OF REPRESENTATIVU it would be a nightmare to monitor the programs and even funding new ones. thousands of vouchers that would begin The National Enquirer, in its March Tuesday, March 18, 1980 flowing through schools, vendors, State and · · · local agencies. These vouchers would easily 11, 1980, issue reported that one schoo1. e Mr. BOLLING. Mr. Speaker, I am end up as targets for massive abuse. we district found to its amazement that inserting for the RECORD an article by would need to carefully monitor local school test scores of their pupils went up· Edwin M. Yoder, Jr.• in today's Wash­ system purchases to assure that appropriate after dropping out of Federal pro- ington Star.· It is a fine piece on our foods were purchased to meet surplus re- grams. This conf~ my strong view late fonner · colleague, AJ.Ia.rd K. moval requirements of commodity distribu- that education is a State and local · Lowenstein. tion. The cost of adm.intstering this program matter. The U.S. Government should · AI's death is a real loss to our democ­ would no doubt rise. Currently, federal out- get out of education. The story from racy. He worked tirelessly for a better lays for nonfood program elements repre- f · sent less than 3 percent of the iotal $3.3 bil- the National Enquirer ollows: world-today not tomorrow. We were lion in federal expenses for child feeding. STUDENT GRADES SoAR .Arn:R ScHooLS QuiT friends, and I wUl miss him. Let's not increase this cost by unnecessarily ·. · GoVERNMENT Am PRoGRAMS . The article follows: encumbering the program with federal red • . .ALLAl\D K. LoWENsTEIN: A REMINISCENCE tape.The proposed voucher· system has never When a small Califorilia school district (By Edwin M. Yo_der, Jr.> been tested in our schools. Yet, I have seen dropped out of federal and state programs Readers of this page, whether or not they figures which are designed to show costs aimed at helping the slow students, .it lost knew Allard K. Lowenstein, may recall at States would save (rom this system. I must $111•000 in school funds-but the children's least one unusual thing about him. He was question the source of figures used by the grades jumped tremendously. probably the only liberal activist ever en­ National Frozen Food Association in its ar~ The reason: Teachers and administrators dorsed for Congress by William F. Buckley, gument in -favor of the letter of credit who had been bogged down in bureaucratic Jr. That was two years ago, before -he fell system. fu .particular, I question the ~ource paperwork, red tape and in meetings were victim last week to an unhinged guiunan. of the total state and local warehouse stor- able to devote more time to teaching, once The Buckley endorsement was one meas- age and handling charges paid by New York the.federal-state programs ended. ure of the catholicity of AI Lowenstein's State. According to the report, New York "By dropping the programs, we were re- charm. It also teflected the .recognition, paid $8.8 million, while officials charged lieved of a tremendous burden," Dr. E. common to all his admirers and friends, · · with running the School Lunch Program Robert Bagley, who is superintendent of that this unembittered exponent of the poll­ have indicated they spent $1 million. How Center Joint School District irl North mgh- tics of dissatisfaction was a wholesome force can I have confidence .in other figures used, lands, Calif., told The Enquirer. in a cynical age. Anq force he surely was. knowing that this one is erroneous? Studies "We are now able to offer a far superior I cannot claim to have known him really . from which data on meal costs have been educational program for our students than well, despite our common connections....:few drawn were severely limited and cannot be. we were under the ideas ot the federal and did, I suspect. He was always on the wing. assumed to have national validity. The De- state governments. · To see him, you had to wait patiently, as for partment of Agriculture, after careful and "We had an improvement in math, read- Godot. thorough investigation, has indicated that ing and lani\lage in every grade." Once, about 10 years ago, I tried several the results of these studies are not conclu- At the beginning of the ·1978-79 school times to interview.him for a magazine piece sive. ~ . year-when the programs were dropped- on the House of Representatives, where he · The commodity distribution system is cer- '72.6 percent of the district's 1,240 . ~hool- was serving his first and only term. His tainly not without its problems. But, I children in grades one through eight were office resembled a railway station In hurri­ cannot recommend hastily scrapping it for below the national average in math; 60.6 cane weather.-Eager young retainers darted one that: · percent were below average in reading, and or lounged about. AI Lowenstein lay Has never been tested in tile schools; 65.7 percent were ~low average in language sprawled, cradling a telephone, on the Ieath- Is a serious detriment to American agri- skills. - er couch where he slept, 11 he slept-orga- culture; But at the end of the year, their grades nizing Biafran relief. The interview consist- Will lead to the erosion of our present were up dramatically: In math, 77.7 percent ed of greetings and· hand signals meaning commodity distribution network, which is were above the national average; in reading, wait. I couldn't. But· one morning in the used for disaster food aid, as well as nutri- 78.8 percent were abov~ average, and in Ian- misty regions· between midnight and dawn- tion assistance, and , guage skills, 70.7 percent were above aver- my phone rang. Congressman Lowenstein, Would, in fact, end up costing us more to age. · . . the voice said;as blandly as if it were high implement and monitor than we are spend- Eighth grade students who were behind _ noon, could see me now! I went back to sleep. ing at the present time. the national average in _math leaped ahead I wish I hadn't. 5782 EXTENSIONS OF REMARKS March 18, 1980 I also recall and evening, about the same others could not.· The legacy of this gentle in newspaper computer technology. I time, when a group of old Chapel HID and dimlriutive Carolina calvinist, a stub­ take great pride in saluting them and friends gathered for a visit scheduled for 8 born fighter for longshot causes, left Its publisher F. AI Totter, and ask my col­ p.m. A1 came about 1 a.m., all pumped up. mark on A1 Lowenstein. His son, named for leagues to Join me in congratulating He had just been at Cornell, denouncing Dr. Graham, is the living symbol of that. president, faculty and students for giving In The struggle for a possible world, however them and everyone else connected to the Intimidation of the Black steady business, and his dedication to It gal­ the silver anniversary of the San Ga­ Student Movement. vanized hundreds of others. No wonder,-per­ briel Valley Daily Tribune.e For some of his older friends one story haps, that for so many he became a figure seemed to tell it all. An old friend-1 think of politicallegend.e lt was Eli Evans-telephoned the famUy res­ THE SILVER JUBILEE OF taurant In search of Al. "Oh," his mother FATHER JUDGE HIGH SCHOOL answered, "Al's not here. He's In Spain." DANIELSON LAUDS SAN GABRIEL After a thoughtful pause she· added, "You VALLEY DAILY TRIBUNE ON know, AI never did like Mr. Franco." SILVER ANNIVERSARY HON. CHARLES F. DOUGHERTY Perhaps there was a Lowenstein-led OF PENNSYLVANIA dump-Franco movement. If so, lt was prob­ IN THE HOUSE OF REPRESENTATIVES ably effective In Its way. His tenacity was HON. GEORGE E. DANIELSON awesome. The coiled, athletic energy, fueled o:r cALIFORNIA Tuesday, March 18,· 1980 on a breakfast of com flakes and chocolate IN THE HOUSE OF REPRESENTATIV·ES e Mr. DOUGHERTY. Mr. Speaker, milk, never deserted him. Father Judge High School, an out­ 1 was of the wrong generation to qualify Tuesday, March 18, 1980 standing school for young men in my. as a Lowenstein disciple, and too stodgy to. ANIELSON Mr s ak want to be one. But like many others, I • Mr. D · • · pe er, on district, is celebrating its silver Jubilee often wondered what preserved the whirl- Friday, March 21, 1980, a tribute during the 1979-80 school year. On tng-dervish energies from cynicism. Surely dinner will be held to celebrate the Sunday, March 23, 1980, students, fac­ not results, which were often unsatisfying! I silver anniversary of the San Gabriel ulty, and friends of Father Judge High first met him In 1952, when he was running Valley Daily Tribune. School will hold a communion break­ the national student movement for Adlai This event, honoring a newspaper fast to celebrate 25 years of dedicated Stevenson,. an effort that did not stop the . which 1s distributed and read widely in service and quality educatio,n in north­ Eisenhower landslide. Likewise, the crusade the 30th CongreSsional District which he organized to oust Lyndon Johnson 16 · · east Philadelphia. years later ran on high, uncalculating emo- I am privileged to represent, will be After World 'War II, dramatic popu­ tions and led to a most unwelcome result- held at the Industry Hills ·Convention lation growth in northeast Philadel­ the disruption of the Democratic Party and Center. phia created a need for a diocesan the election of Richard M. Nixon. Twenty-five years ago, in March Catholic high scho()l for boys. -The As an Instructor at N.C. State, In 1963, A1 1955, a number of previously pub­ Missionary Servants of the Most Lowensteln organized civil rights demon- lished weekly papers in various valley Blessed Trinity graciously donated strations to beard the North Carolina legis- cities were combined to form the San part of their motherhouse ·and novi­ lature In its den at the Sir Walter Raleigh Gabriel Valley Daily Tribune By 1956 Hotel. The tippling legislators glared and - · • tiate grounds to. the Archdiocese of seethed as AI Lowenstein's young hosts it had attracted a circulation of 15,000, Philadelphia to meet this need. The chanted and marched before their doorstep which climbed to 45,000 by 1960 _and new school along the Pennypack in the warm spring evenings. The good soared to 93,000 at around 1965. Creek was named after the sisters' result was that some-a few-accommoda- In succession, the editors during founder, the Rev. Thomas A. Judge, tions opened their services to blacks; the that important period were Tom Rat­ C.M., and was placed under the direc­ bad result was that the legislature passed a cliff Howard . Seelye and Maurice tion of the ·Oblates of St. Francis de mischievous law banning "known_commu- Co~ ton ' nist" speakers from state college com- By 1968, the Tribune had undergone September 8, · 1954, for its first aca­ puses.' a number of sales in ownersblp and F. demic year. The removal of this obnoxious·legacy con- AI Totter became the publisher, For 25 school years Father Judge sumed the better energies of a decade. . By then, when the lingering bills of Bell was· the execu'tive editor, Bud tional training, and spiritual education activism fell due, A1 had moved on to other V lz the managing editor Maurice places and causes. o er • have been equally outstanding. The A career of perpetual dissatisfaction like Compton the editorial page editor, and dedication to excellence by individuals Al's rested, 1 suppose, on the honorable Richard E. Tracy the edito~. who have contributed to the rich heri­ belief that the perceived· evils of the At present, Maurice Compton still tage of the school continues to inspire moment aren't to be temporized with, conse- holds the post of editorial page editor; young rnen to live up to the school's quences be damned. The seeds of a new and Fred Downing is managing editor; Bob motto "non excidet", which means "he better order must. be planted while the Crowe is assistant managing editor; wlll not fall away". bri~ht sun of idealis~ and indignation Bob Evans is city editor· Bob Copper- shines. The glacial pace of reform is a risky • Mr. Speaker, to Rev. John J. Dennis, bet in a short life. so, 1·suppose, A1 Lowen- stone is assistant city editor; Barbara O.S~F.S .• principal of Father Judge stein would have argued. Tarshes handles Living Today; B~:uce High. School, and to the many other His faith 1n Insurgent causes-always to be Denning is real estate and ~ express. people who have helped to make the pursued within the rules-could be traced, 1. editor; Joe Smllor is entertainment school what it is today, we offer ou~ think, to the influence of .an even more editor; Wayne Monroe is sports editor; congratulations and our· gratitude for charismatic figure too little known outside Bob Boden is news editor; and Bill remarkable achievement in educa­ North Carolina-Frank Porter Graham, Freemon is community editor. tion.e once president of the University of North The production manager is Bill Ore-· Carolina, and later U.S. senator and a U.N. di ifi d ad rti in i mediator. ne; c 1ass e ve s g manager s From one perspective, Dr. Graham's life Chuck Rathbun; advertising manager THE FATEFUL 1980's was one of unavailing struggle-as a racial is Bill Parker; national advertising liberal before his time, as a gentle man un: manager is Carl Hunt; and Don Lewis HON. LARRY .McDONALD seated from the Senate by a campaign of is circulation manager. OF GEORGIA vile personal abuse, as a man who even tried Mr. Speaker, the aforementioned· IN 'l'HE HOUSE OF REPRESENTATIVES 1n vain to talk .the Indians and Pakistanis . people are all highly competent pro- into agreement over Kashmir. · fi d b Tuesday, March 18, 1980 These disappointments left Frank .feS:Sionals in their el eca~se the Graham unembittered, hopeful, patient. Tr1bune is now one of America s most e Mr. McDONALD. Mr. Speaker, it is stubbornly inclined to see redeeming traits complete and modem newspapers as too early yet to. say just how serious of character even In his enemies when well as (since 1974> one of the leaders the Pr~sident was when he ~nnounced March 18, 1980 EXTENSIONS OF REMARKS 5783

his program to fight inflation. In this are many more expensive proJects, such 88 gage market and put an end to long-term fi· speech he placed most of the blame the national health insurance program, na­ nancing. The federal government will surely and most of the penalties on the tional energy development, emergency aid come to the rescue with occasional subsidies to cities and corporations. etc. Moreover. to its favorite voters. But even massive gov­ American consumer and very little on the monetary authorities eagerly put on ernmental SPending cannot replace the the Federal Government and our un­ more steam whenever the American econo­ fading mortgage market. Most real estate balanced budgets where it belongs. my shows early signs of stagnation and de­ prices will barely keep up with consumer The fact is that even the · President cline. They are ever ready to "stimulate" market prices; stringent rent controls will now recognizes that something must through currency creation and credit expan­ cause apartment ho~ prices to plummet. be done. Prof. Hans Sennholz of Grove sion. Therefore. we . must reluctantly con­ In short, extreme liberalism .will bear its City College in Pennsylvania has been clude that the inflation will roar on. and bitter fruit in a final burst of transfer saying that this crunch was coming burn to ashes, all monetary assets in its spending, paralyzing the U.S. dollar, con­ for some· time, while the Congress and way. suming business capital wherever it can ·be We-are facing a political and economic sit­ found, eroding all standards of living, and everyone went on merrily spending uation this country haS never seen before. causing the quality of American life to dete­ money we did not have. Just how seri­ The old forces of liberalism that shaped riorate substantially. By 1984, many Ameri­ ous this situation is, was recently governmental policies for half a century are cans will be fighting mad over the economic summed up by Professor Sennholz in falling into disrepute. They are charged fiasco and the social alienation. Conserva­ Private Practice for February 1980. I with having brought us economic stagna­ tives in both parties will gain in stature and commend this article to the attention tion. disastrous. Inflation, and a falling power. But can they set right the listirig · of my colleagues who may now be standard of living. To benefit the poor and ship? Can government spending be slashed more open minded on conservative .. underprivileged." they ravished the pro­ without an outbreak of violence-by all those ducers through taxation, impoverished the beneficiaries who are deeply convinced of economics: middle class through inflation. strangled their moral right to redistribution and are .'I'm: FATEI"UL 1980's economic life through regulation and divid· accustomed to government largess? Can the You do not see any leaked stories abled American citizens to gain information ex~mpt from such review although in the newspapers about covert ac­ concerning themSelves, has also allowed for­ one of the biggest intelligence flaps in tions; ergo, (b), there are no covert ac­ eign governments to obtain sensitive intelli­ modem history-the downing of Gary tions going on, and this means our gence infomiatlon. Many of our potential Powers' U-2-involved an intelligence foreign policy is crippled. But this ar­ adversaries have been able to file freedom collection operation. Ahother, the of information requests with the CIA cover­ gument is fallacious since covert ac­ ing a whole host of areas for which they Glomar Explorer, involved the expend­ tions continue daily. In truth, we have no legitimate interest. iture of hundreds of millions of dollars should be reasoning thus: You do without real congressional review. not see any leaked stories in the news­ The picture thus painted sounds Hughes-Ryan. erroneously assumes papers about ·covert actions; ergo, , horrifying. But let u.S look at realities. that intelligence collection is neutral we · have clearly demonstrated that The freedom of information provisions and that foreign policy can only be. Congress can exercise oversight of the that concern the CIA were enacted in tripped up by covert action-defined m·· intelligence community without any 1974. Can the CIA or· anyone else the profession as programs designed to serious problems. point to a single word that the CIA influence ·the outcome of events There is, however, one real problem has been forced to release against its abroad through clandestine activity with the reporting requirement in better judgment in ·the intervening 6 ranging from propaganda to paramili­ Hughes-Ryan-a perceptual problem; years? tary. just how cooperative are foreign intel­ The law as now written specifically Hughes-Ryan should be amended so ligence services and sources willing to empowers the CIA to deny access to that congressional committees-be be when they think so many talkative properly classified information~ Peti­ they two or eight or something in be­ Congressmen are being brought into tioners who feel they are being denied tween-are informed of covert action, the informational loop. I hear many access improperly can go to court. intelligence collection, and other high­ expressions of concern relayed by the Hundreds have. One case is still pend­ risk intelligence activities mounted by CIA from foreign intelligence agen­ ing appeal by the CIA, but in 6 years any agency of the Government. cies, although J have often wondered not one single case has yet been lost Second, as we · frequently hear, if the CIA's publicly expressed fears by the Government and not one single Hughes-Ryan says that Congress about foreign cooperation have proved word has been released by the CIA should be notified "in a timely self-fulfilling and m~de the problem under·protest. fashion." The CIA points to that March 18, 1980 EXTENSIONS OF REMARKS 5787 phrase and interprets lt to mean it "that the section us_ed the more · tion leading to the exposure of a need tell Congress only after it has formal legal condition precedent Ian- person work-ing under .cover; and it. launched a covert action, by which guage 'unless~ rather then 'before."' closes a loophole by making it· an of­ time it has become much more diffi- On the House floor the words "and fense to use a protected technique- to cult to change direction. until" were added after "unless," pre- discern who is an agent. Over tlle years, I have accepted that sumably for extra-emphasis. · THE maRTs or AMERicAHs interpretation of the phrase "in a In the conference committee that A large part of the American public timely fashion.'~ And I have publicly ironed out the differences in the two · remains ill at ease about the intelli­ labeled that a defect of Hughes-Ryan. versions, the Senate accepted the gence community and fearful that the However, upon closer exaniination, I House wording. The Celada study rights of individualS can be trampled fear that we in Congress have allowed notes that the Senators on the confer- easily by agencies that have .the statu­ ourselves to be buffaloed into accept- ence committee said the House word- tory power to operate behind a cloak. ing an unreasonably narrow interpre- ing was different from the Senate The intelligence community and its tation of the law. wording in three aspects.-:.none of supporters can argue that-these f~ars I would refer Members interested whfch dealt with the issue of prior or are groundless and that the abuses ol in the details to an excellent, albeit post notification, thus indicating that the past have been banished forever. · obscure, study by Raymond J. Celada, both Houses agreed on prior -notifica~ In effect, they are saying that· the senior specialist in American public tion. American public has a perception law with the American Law Division of We passed legislation that called for problem about the intelligence com­ the Congressional Research Service. prior notification. The bill I am intro- munity. . In a study dated March 18.. 1975, Mr. ducing today will make that specific so I do not accept that. Their abuses Celada concludes that Hughes-Ryan there need be no further dispute. were real enough once. They can requires advance notification, both as But, as with the matters I discussed happen again. we ought to address a matter of law and as·a matter of con- · earlier, there is still a matter of per- the problem by writirig into the stat­ gressional intent. ceptions. For just as critics of the utes rules the intelligence community At this point, I insert in the RECORD Hughes-Ryan provision calling for no- must comply with. We need not exces­ the full text of the Hughes-Ryan tification · to eight conunittees think slvely hamper the intelligence commu­ amendment to the Foreign Assistance hundreds of Congressmen and Sena- nity, and we ·would be addressing the Act of 1961. tors are notified, so critics of the concerns of a sigruficant segment of SEC. 662. Limitation on Intelligence Activi- "timelY fashion" phrase ·in Hughes- the public. ties-(a) No funds appropriated under the Ryan tend to think the CIA notifies First, an American .should not be authority of this or any other Act may be the committees of nothing in advance. treated as a second class citizen by the expended by or on behalf of the Central In- I want to make clear that the CIA has u.S. Government simply because he telligence Agency for operations in foreign usually, though not always, given the t~avels abroad. An American should· countries, other than activities intended · House Intelligence Committee advance not be considered a fair target for any solely for obtaining necessary intelligence, word of covert action plans. The prob- kind of surveillance simply bee' ause· he unless and until the President· finds that each such operation is important to the na- lem is that the CIA has insisted from has· left Dubuque for Dunkerque. The tiona! security of the United States and re- the beginning that it cannot be re- bill I am introducing will do that. For ports, in a timely fashion, a description and qulred to iriform Congress in advance. example, to institute an electronic sur­ scope of such operation to the appropriate The language of my bill is intended to veillal)ce of an American abroad a war­ committees of the Congress, including the pin down the intelligence community. rant would be required, based on a Committee · on Foreign Relations of the The language in my bill, however, criminal standard, as it is for such sur­ United States Senate and the Committee on really breaks no new ground; it simply veillance in the United States. If the Foreign Mfairs of the United States House fi with rt int b th t of Representatives. . xes ce a Y o curren prac- Government wants to open the mall or The provisions of subsection of this · tice and the original intentions of the search the home ·or office of an Ameri- section shall not apply during military oper- Congress. · can, at home or abroad. under my bill ations initiated by the United States under NAMES or AGENTS they wili have to obtain a warrant a declaration of war approved by the Con- There is another major topic cov- based on strict probable cause of a gress or an exercise of powers by the Pres!- ered by the Intelligence Activities Act crime, and will have to serve the war- dent under the War Powers Resolution. of 1980. That is the protection given rant on the subject of the search. Note that the amendment uses not. the names of agents. The Huddleston Second, the integrity of some of the only the term of art. "in a timely fash- bill and the Moynihan bill contained a leading institutions of· our society­ ion," but also the phrase, "unless and section designed to . punish anyone specifically the clergy, the· press. and until.'' The law states that the CIA who might divulge the name of an academia-can be undermined if their cannot launch a covert action "unless American intelligence operative, but coUnterparts abroad believe that min­ and until" Congress has been notified. the Moynihan bill inclutled a provi- isters, newsmen, or 'teachers are actu­ Mr. Celada's study says: sion-which he ha.S disavowed-re-· ally sent abroad by the CIA to ferret • • • (Tlhe requiSite report to the Con- stricting the press which could be con- out intelligence information. The. in­ gress has to precede the operation .... The strued ·so broadly that a newsman temal regulations of the CIA now pro­ expression "unless and until," however re- might be threatened with Jail for iden- hibit such paid relationships, but the dundant to the layman, is not an unfamiliar tifying Francis Gary Powers as a CIA Director of Central Intelligence can legal expreSsion used to highlight a condt- employee. · waive these prQvisions, and has . said tion precedent. [Emphasis added.) I believe there is wide agreement that he has .been willing to do so. The Mr. Celada's study traces the evolu- that the names of a-gents should not bill I am introducing explicitly prohib­ tion of the Hughes-Ryan amendment be bandied about. I also sense brpad its such relations, with no provisions as it wended its way through Con- agreement that the press should not for waivers. gress. figure in any names-of-agents legisla- · I ·fully agree that the intelligence The first version was drafted · by tion. In fact, Senator MoYNIHAN has community needs to be able to do a then Senator Harold Hughes of Iowa. now dropped his support for that part certa'i.n amount of information-gather­ His version said a covert action could of his bill. · ing. about Americans. We need good be launched "if, but not ·before," Con- The · names-of-agents provision in counterintelligence and we need good gress was notified. Hughes said he the bill I am introducing today is very· ·counterterrorism intelligence. The chose those words to "make explicit similar to the Moynihan bill minus the problem is how to provide this author­ my intention that notification to con- section on the ~;>ress, and to the Hud- tty and .still close off the possibility ·of gressional committees about c_overt dleston bill. · massive invasions of privacy and losses action and operations be made prior to . It does, however. provide a clear link of freedom guaranteed by the Consti- the initiation of the operation." to intent. to foreknowledge on the. tution. The House version. drafted by Ryan, part· of a perpetrator; it clearly makes In my opinion, the Huddleston bill was different. The Celada study notes it a crime to divulge claSsified informa- makes a game- effort but failS because 5788 EXTENSIONS OF REMARKS March 18, 1980 of complexity and compromise. Moyni­ impose restrictions that prevent that ized personally by the President, either by han is silent. I have made an effort. agency from doing its job. specific activity or by category. Those activi­ ties approved and reported by category are which you may. judge. to write clear· With the aid and assistance of Mem­ thereaft.er to be supervised by the National provisions, which can be administered. bers of both Houses. of critics of the Security Council which is. charged aries, control systems, and .limits-. and loyal servants. I have tried to frame a with the responsibiHty of insuring that each which provide the intelligence services bill that addresses the carefully de­ activity so authorized remains consistent with adequate-not excessive. but ade­ fined but ·real problems that demand­ with the nature and scope of the category quate~tools for their work. to be addressed. I think this bill-the­ approved. CONCLUSION product of many minds and the distil· The President is required to provide addi­ In· the past covert actions were com­ lation of much experience-can navi· tional information when requested by the monly laid out by a small circle of gate us past the rocks and shoals that Intelligence committees regarding specific people often devoted to ends over have proved the graveyard of efforts special activities undertaken. means. It is those means that got us to date to craft a charter for the intel­ In light of these requirements for the car­ ligence community. rying out of any special activity, Section 662 into trouble in many parts of the of the Foreign Assistance Act of 1961, as world. The processes that have been Mr. Speaker, I insert at this point in amended-the so-called "Hughes-Ryan set up since then were designed not to the RECORD a sectional analysis of the Amendment" <22 U.S.C. 2422> is repealed. emasculate . intelligence operations, Intelligence Activities Act of 1980 pre­ Unlike the section repealed, this Act's re­ but to block the folly of the un­ pared by Kent Ronhovde, legislative strictions on special activities would have checked bureaucrat. We have now attorney in the American Law Division application to all agencies, not the CIA worked with these procedures for. a of the Congressional Research Service. alone. The new requirements would not, 8ECTION·BY-8ECTION ANALYSIS OP THE DIS· however, apply to Central Intelligence half decade. They have worked reason­ Agency operations of which the Con­ ably well. but both the intelligence CUSSION DRAI"T OP THE INTELLIGENCE ACTIV• . ITIES ACT OF 1980 gress was notified prior to the enactment of community and its congressional over­ this law. The new provisions would not seers have grounds for legitimate com.:. The "Intelligence Activities Act of 1980", apply to activities initiated pursuant to a plaint. The law does need to be fine if enacted,· would accomplis,h three primary declaration of war or during a period cov­ goals. It would provide authority and over­ ered by a presidential report to the Con­ .tuned-fine tuned to relieve the intel­ sight for so-called "Covert operations", it ligence community of perceptual im· would enhance the protection of the identi­ gress under the War Powers Resolution <50 pediments tp its legitimate work, fine ties of intelligence agency employees and U.S.C. 1541 et seq.> which are 1n further­ tuned to improve the congressional the confidentiality of sources of informa­ ance of the use of armed forces of the oversight process, and fine tuned to . tion, and it would take strides toward assur· United States that is the subject of such assure the public that it will be pro­ ing that the privacy of "United States per­ report. tected from molestation by agencies sons" was protected 1n the course of the Section 102 that cannot by definition operate in country's tnteiUgence effort. For the purposes of congressional over­ public. · TITLE I-SPECIAL INTELLIGENCE ACTIVITIES AND sight, agencies engaged ln. intelligence activ­ Many in the intelligence.community . CONGRESSIONAL OVERSIGHT ities are to keep the Intelligence committees would prefer to return to the good old Section 101 of the House and Senate "fully and current­ days. The fewer people it has to go to The "special activities" dealt with 1n this ly informed" of all Intelligence activities the better. in its eyes. I might note Title are defined as those which are: con­ which they are Involved 1n or for which ducted outside of the United States 1n sup. tl)ey are responsible. "Counterintelligence that most school superintendents activity" is defined as the collection, reten­ would prefer not to have to run their port of O\lf foreign policy objectives, are de­ signed to· further our programs and policies, tion, processing, analysis, and dissemination ideas past school boards. Most county and are conceived and carried out with the of counterintelligence as well as other activ­ executives could ·. do without· the Intention· that the role of this Government ities undertaken to protect against espio­ bother of getting approval from be neither apparent nor publicly acknowl­ nage, covert action, assassination, sabotage county boards. Most corporate presi· edged. Diplomatic activity and the produc­ and other clandestine activities of a foreign dents would just as soon skip those tion and collection of Intelligence are not government. "Counterterrorism intelligence meetings with the board of directors. considered special. activities. All special ac· activities" relates to similar effo$ to We all like to think that we have great tivities may only be undertaken 1n full com­ counter International terrorist activity. pliance with the provisions of this Title. The President is to ensure that committee ideas and w~ would like to carry them· requests for information or material con­ to fruition without having other Two types Qf special activity are deltnea~ ed. Those which involve or may involve "ele­ cerning Intelligence activities are complied people first toss darts at them. · ments of high risk. major resources, or seri­ with by the appropriate Intelligence com­ But whether we plan covert oper­ ous political consequences" require a presi­ munity entity. Similarly, information is to ations. corporate strategies. or con­ dential finding that the activity fs "impor­ be supplied regarding illegal or improper in­ gressional campaigns, we are better off tant to the national secUJity of the United telligence activities reported to the Presi· in the long run ·if our ideas get States." Another requirement for such ac· dent, the Attorney General, or the head of sponged · down by outside critical tivity is a report to designated congressional an entity of the Intelligence community. In committees and Members 1n advance of the addition to ensuring that such information minds. It might not be great for the is provided to the intelligence committees ego, .but it provides a better end prod­ commencement of the activity. This report, to include the ~ature, scope, and Justifica­ "In timely fashion", the President is also to uct. tion for the activity planned, would go to see to it that such information includes a There should be a debate ·over the House and Senate Intelligence commit­ description of corrective actions either Hughes-Ryan, the FOIA, and related tees whic:tl may be Joined by two Members taken or planned. The Act is nowhere to be issues. But the debate we have heard of each of the other appropriate committees construed as authorizing the withholding of so far too often misses the point. I of each House "designated 1n accordance information from the Congress. ·would hope that we could push aside with such procedures as may be adopted by TITLE II-PROTECTION OF CERTAIN the ·smokescreen .issues and get down such committees for such purpose." Includ· INTELLIGENCE INFORMATION ed 1n this type of activity, and requtrlng to the root questions. identical procedures and limitations, are Section 201 The goal should not-be to loosen the "Intelligence collection activities" Involving This section would grant to the CIA an ties that bind the CIA to Congress. but the same risks, resources or political conse- exemption from the provisions of the Free­ rather to strengthen them. We should quences. · dom of Information Act <5 U.S.C. 552>, or no more permit the CIA to prowl the TJte second type of special activity in­ any. other act, regarding disclosure to realm of public policy unchecked than cludes all of those not covered in the first anyone outside of the executive or legisla­ we would allow the Agriculture De· group. Such activities need not be author· tive branches of any matter furnished to partment or the Nuclear Regwatory lzed individutilly, but may be authorized by tlie ·Agency in confidence by a confidential Agency to do so. .. . the President by category. Such a category, source or provided to it 1n confidence by an however, must meet the same standards re­ Intelligence service of a -foreign government. At the same time. the goal· should be quired of Individual activities. Reporting re­ "Confidential sources" are limited to indi­ to assist the CIA in carrying out the quirements are also identical save that lt is viduals who are or have been agents, inform­ duties assigned to it by the law. We the cateeory, rather than the activity Itself, ants, or sources of operational assistance cannot ask any agency to -perform· as­ which must be reported. Thus under this to an Intelligence agency and whose identity signed tasks and then turn around and Titie all speeial activities must be author· is classified. March 18, 1980 EXTENSIONS OF REMARKS 5789 Section 202 Section 303 of the Individual would jeopardize the secu- The Act would make It a crime for one to disclose Information counterterrorism intelligence may only be permitted. But enumerated techniques are acquired as a result of having had author· directed at that person "on the basis of not to be used In the course of any Inquiries. ized access to classified Information which facts or circum.stances which reasonably In· Including placement of Informants or under· identifies a covert Intelligence officer . or ex·. States In the last·five years> as an officer or ering activity or other Clandestine lntelli· aminlng certain financial records. employee of an Intelligence agency. Such gence activity for a foreign power. Such al· Section 305 · identification of members of the Armed leged activity must Involve a .violation of a criminal law of the dures to be established to govern the collec­ agency is also covered. Additionally, those United States . States person. Each agency head within the tion identifying past or present agents. In·. Non-consensual counterintelligence or coun- Intelligence community is here obligated to· formants. or "sources of operational assist· terterrorism Intelligence collection Jnay also establish procedures to cover the collection. ance" who reveal that relationship would be be directed against "International terror· retention. and dissemination by that agency subject to the same penalty. In order to be ism" where facts or circumstances reason· of Information concerning United States liable to such punishment. the person must ably Indicate that the person has been so persons. and such procedures must then be make the disclosure intentionally and to an . engaged. Such activity is defined to cover followed without exception. The Act would individual not authorized to receive it. The activities that involve violent acts or acts establish certain . mandatory il)clusions ln section also covers the use of classified in· dangerous to hwnan life which violates such procedural frameworks. They must: (1) formation by one with lawful access to iden­ State or Federal laws or would have if com- protect constitution~ Tights and privacy; <2> tify the intelligence relationship of an indi· · mitted here. Such acts must appear to be ln· designate initiating and approving officials; · vidual protected by this· Act. Disclosure of tended tc:J Intimidate or coerce a civilian (3) provide for annual review of activities; <4> ensure maln­ fense. In order for a person to be in viola· ernment by Intimidation or coercion. or to tenance of approval records for Particular tion of these prohibitions the revelation affect the conduct of a government through ac.tivities; <5> minimize acquisition. reten­ must have been made "knowing that the in· assasslnatiori or kidnapping. In order to con- ·· tion• . and dissemination of Information on formation disclosed so identifies such indi· stitute "International terrorism" under the United States persons; <6> prohibit. where vidual and that the United States is taking Act. the acts must occur totally outside of feasible, the dissemination of "foreign intel­ affirmative measures to conceal such indi· this country or "transcend national bound· llgence" (Information relating to foreign en­ vidual's intelligence relationship to the aries" ln terms of the means used. the per· titles other than counterintelligence or United States." SOIUI targeted, or the location ln which the counterterrorism intelligence> ln such a way Public acknowledgement or revelation by individuals engaged ln th~ activitY. operate . that a United States person is identified; <7> the Government of the relationship consti· or seek asylum. otherwise authorize dissemination of evl- tutes a defense to prosecution for these The section would place restrictions on dence of a crime for law enforcement pur­ crimes. Nor may an Individual be convicted the ·use of mail covers (inspecting and· re- poses; prescribe reasonable requirements for · revealing his own covert relatioiUihip cording Information on the exterior of enve- regarding the· scope. Intensity .and duration after that relationship has terminated. The lopes>. physical surveillance for purposes of particular types of activities; <9> minimize section precludes any prOAeCution of others other than indentification. gaf.nlng access to Intrusion Into privacy; <10> set standards for for conspiracy,.misprlson. or being an acces· certain records of financial instltutioiUI. and the conduct of employees under cover; (11) sory to such crimes. Transmission of such recruitment of persons to engage_ln "direct- establish procedures for dealing with illegal information directly: to the intelllgence com­ ed collectlo~" -. Such collec- elude: reporting requirements. standards for an offense. The proscription would have ex­ tion efforts would not be permitted Unless a the retention of such information gathered. traterritorial application if committed by a designated senior official of an entity of ~he and administrative sanctions for failure to United States citizen. Intelligence community makes a written oomply. either with this Act or regulations TI.TLE III.-PROTECl'ION OP PRIVACY OP UNITED finding of the necessity of such means to or directives pursuant to this Act; <12> pro­ STATES PERSONS ac.hieve authorized obJectives and stipulates ·vide for the designation of senior officials that the effort will be ln accordance with- · whose authorization is required by portions Section 301 procedures prescribed by this Act. Where ln· of this Act and establish means for audltint Collection, retention. and dissemination of formants or undercover agents are to be uti- and inspectmg directed collection; Information concerning a "United States lized, "means Independent of. the control or Such procedures ·genera,lly must be ap. person" by members of the Intelligence supervision of the head of the entity of the proved by the Attorney General before- be· community may only be undertaken to ful­ Intelligence community Involved" niust be . coming effective, -arid upon receipt of such fill a lawful function of that agency and established ln order to audit and inspect the approval ·the intelligence entity Involved must be authorized by this Act. Such "per­ placement. If any collection upon which must make these procedures available to the sons" Include citizens of the United States. these resttictlons are placed- may · Involve House and Senate Intelligence committees aliens admitted for permanent residence, significant collection of lnfc:>rmatlon con· at least thirty days before they are to unincQrporated 'organizations ~(ther orga-. cemlng political or religious activity. the At- become effective. Provision is niade for lm· nized here or having substantial ·numbers of torney General is to be notified. This ~ decl- mediate Implementation in exceptional members w.ho are United States citizens involved . is to be based upon guidelines mines that it is necessary. and notifies the which are not controlled by foreign govern· which the Attorney General·will establish. committees immediately of such fact to- ments, and corporations which are Incorpo­ This section flatly· proscribes a.ily collec· geth~r 'with his reasons ·for so concluding. rated here. tlon of counterintelligence or counterterror- Any subsequent changes in procedures must Section 302 ism Intelligence directed against a United meet all the requirements of those original· States person "solely on the basis of activi· ly lmplemente~. · .This section would specifically authorize ties which are protected by the First Section 306 the collection of information and the direc· Amendment to the Constitution.;• tion of "intelligence activities" against a consenting mine whether there is a basis for directing These guidelines are to be ln accordance United States citizen. and would permit the counterintelligence or counterterrorism In· with constitutional principles and would be collection of Information relevant ·to a ·telligence- against a United States person. made public. The intelligence community lawful function of the agency where that In· Such Inquiries could be· directed .at persons . would be precluded from establishing or formation is publicly available and concerns who have been targeted by foreign govern· malntaflllngc a cover for . an employee a United States person. Collected informa­ ment -clandestine intelligence efforts. They through the use of the affiliation of any tion which does not identify the person may also be initiated to determine the ·suit- person with <1> a whom it concerns may be retafued and ·dis­ ability or credibility of the individual as an United States religious organization. <2> seminated "for lawflJ} governmental pur­ Intelligence source or as a potential source United States Jnedia organizations. <3> edu· poses." The language of this section makes of operatioruil assistance. And Inquiries may cational institutions of this country. <4> the it clear that measures ~en ·by intelligence be conducted in order to provide security Peace Corps. <5> or "any United States Gov­ agencies.as security measures for its person· for intelligence activities. But ln all such in- ernment program designed to Ptomote edu· nel, installations. equipment. activities. or quiriea a.s thiS section authorizes. a senior -cation or arts, humanities, or pultural af. classified Information which are now au­ official of the agency concerned must make fairs through international exchanges!• In­ thorized woUld not be affected by the Act. a determination that requesttng the consen1; dividuals professionally Involved with such C.XXVI--365-Part 8· 5790 EXTENSIONS OF REMARKS March 18, 1980 areas or traveling outside the United States OPPOSITION TO MANDATORY The_Congress has halted attempts to as part of such Government programs could SOCIAL SECURITY COVERAGE undermine the Federal retirement not be paid by an intelligence agency to system before, and I shall do all within engage in intelligence activities. However, my power to see that the Congress re­ voluntary contacts or exchanges of informa­ HON. HERBERT E. HARRIS II sists the "quick fix" approach again. I tion are ·not prohibited. Exception is made OF VIRGINIA urge my colleagues to join me on this for wartime and during periods covered by IN THE HOUSE OF REPRESENTATIVES the War Powers Resolution, but timely noti­ important -issue.e fication to the congressional committees, to Tuesday, March 18, 1980 include the facts and circumstances requir­ e Mr. HARRIS. Mr. Speaker, I would FARM SECTOR ing such activity, is mandated. like to take· this opportunity to share Section 301 the views of residents of Virginia's HON~ WILUAM C. WAMPLER This section would provide a civil remedy Eighth District on mandatory social against the United States for those .ag­ security coverage with my colleagues. or viRGINIA grieved by employees of the intelligence I have polled my district ,on this IN THE HOUSE OF REPRESENTATIVES coinmunity where such employee has acted matter and received over 40,000 re- Tuesday, March 18, 1980 "to deprive that person of any right protect­ sponses on this vital issue. I am taking ed by the Constitution or laws of the United this opportunity to point out some of • Mr. WAMPLER. Mr. Spea)ter, in the States." Actual and general damages . punitive damages, attorneys fees, mandatory coverage for individuals Agriculture to the Committee on. the and court costs may be recovered. A three­ not currently oove~ed. Budget,'' many of us expressed con- year statute of limitations is imposed on the First. Federal employees have cern that the Department of Agricul­ bringing of actions in United States district earned their retirement benefits by ture was giving short shrift to the courts . This would be the exclusive remedy salary to the civil service retirement the farm sector. We cited the fact that for money damages in such situations. fund throughout the course of their the farm sector was contributing sub­ Section 308 employment~ stantially to the Nation's trade surplus This section would require adherence by Second. The civil service retirement and that the productivity of the farm intelligence agencies to the law enforcement system predates social security and sector was leading all segments of the standards imposed by the Consltution and constitutes a total retirement package: Nation in worker productivity. We laws of the United States when <1> engaging social security was established . as an cited farm research as one of the areas in physical searches of the property of income floor . to be supplemented by where the Carter administration was United States persons in this country , or <2> engaging in unconsented mail opening of mail in United States postal service retirement system has been a USDA budget. · channels or of known United States persons major factor in recruiting and retain- Therefore, it was interesting to find which mail is not in such channels. ·ing highly qualified Federal employees · the follawing two articles which since 1920. appear in the March 1980 issue of Section 309 Fourth. Federal employees feel that Southern States Cooperative. Farmer. . This section would amend the Foreign In· requiring universal social security cov- These articles are reprinted below ~d­ telligence Surveillance Act of 1978 which authorized elec­ tronic surveillance within the United States Of contract on the part Of their em· A SHIFT IN FEDERAL F~ RESEARCH POLICY? for foreign intelligence purposes under pro­ ployer-their own Government. With the 1980 election approaching, the· cedures and requirements which it estab· These are only a few of the reasons Carter Administration appears to be making lished. Among those procedures were re­ which cause me to oppose the merger. moves toward dropping any USDA agricul­ quired applications for court orders from a In addition, my research indicates that tural research that might carry political special court created by the Act to hear a merger without basic structural risk.- such requests. The amendment made by h w uld onl ak the 1r dy In a speech made ~ USDA's Science and this seetion woUld make that law appliqable c anges 0 Y m e a ea Education Admlntstration staff members in overseas ·in certain circumstances. That is, · unwieldy social security system larger. January, Secretary Bergland announced the the authorization arid attendant require­ In ·fact, Robert P. Bynam, Acting formation of a task force to review the· de­ ments for such surveillance would now Deputy Commissioner of the Social partment's research activities. · apply to instances where the United States Security Administration, spoke to the "Until recently, agricultural research was person targeted is not in the country, but issue of universal coverage during con:- evaluated almost exclusively ln terms of where a warrant would have been required gressional hearings. When asked if · what research promised in the way of for law enforcement purposes had the bringing Federal employees into the volume productivity gains. Too often paten­ person in fact been here. social security system would help take ~tally negative economic and social effects· care of the funding problem he stated were not factored in to the evaluation," Se~tion 310 " · ' f Bergland told the staff. Finally, the Act would make it clear that that was a misguided reason or "I find it difficult if not impossible to jus- none of its provisions may -be relied upon to bringing the Federal employ~es into tify the use of federal funds to finance re­ permit an intelligence agency "to conduct the syst~~: it would not have any sig- search leading to the development of ma­ any activity designed to deprive any person nificant impact of the soundness of chines or other technologies that may in­ of any right, priviiege, or immunity secured the overall social security system." crease production and processing efficiency or protected by the Constitution or laws of By failing to addresS these major but at the same time damage the soil, pol­ the United States." issues I believe that the proponents of. lute the environment, displace willing work­ unive;sal coverage have proved that ~rs and reduce or eliininate competition," he TITLE IV-DEFINITIONS AND ·said. EFFECTIVE DATES they are more interested in attackip.g .Bergland InSisted that USDA's research Section 401 Federal e~ployees . than in solving the best be limited to areas where neither the Definitions for the purposes of the Act are tough problems facing the social secu- states nor private enterprise might assume here set out. Most of these have been cov­ rity system. It makes no sense to me responsibility. He spoke more on how ag re­ ered as they arise in appropriate sections. .that we should consider undermining search might sav.e energy than he did on· a sound Federal retirement system in producing more food. Section 402 order to shore up a poorly structured As Bergland noted in his speech, agricul- The first two titles of the Act, those relat­ supplementallncome program. tural_research became a hot topic last No- Ing to special activities and the protection of "! have studied their arguments apd I vember when he stated that he wouldn't put intelligence information, would become ef­ am not convinced. It would be poor federal money into .any proJects to reduce fective on the date of enactment. While the public policy for this Congress or this and his United Farm work­ authority to pre~?cribe regulations under fag:s~~~avez Title III would also take effect immediately, administratiop. to r~nege on its long- ers feel ·threatened by mechanization re­ the rest of that Title would become opera­ standing commitment to the civil serv- search_at the University of California. They tive 90 days from the. date ot enactment.e ice retirement system. claim 250,000 farm laborer8 will be put out March 18, 1980 EXTENSIONS OF REMARKS 5791 of woFk by the schoors new machines in the tion trend which is sweeping the country, Then there are those citizens who are next few years. has brought about many dramatic.changes smart enough to turn to the courts for help. "The farm labor people liked what I said. in our cities. Older neighborhoods, once Ih Philadelphia, a suit by a disgruntled And so did a lot of folks in parts of the prestigious, then deteriorated and paralyzed neighborhood group ended in success, when country where small-scale agriculture is the by the traditional ills of the slums, are a 'federal Judge ordered the city to provide norm. and not the exception," Bergland re- being redeveloped. Nevertheless, there are 131 units of subsidized housing for residents marked. · many unfortunate lower-income residents displaced by renovation. Still another exam­ "But in large-scale agribusineSs circles, who are paying a heavy price for this urban ple would be the residents of Pershing-wa:. and some of the land~gni.nt colleges, my re­ miracle. Thousands have already been dis­ terman Redevelopment P,l'QJect in St. Louts. marks were interpreted to mean that I was placed or pushed out of their homes, and They are suing to provide relief for the esti­ going to cut off federal funding of all the problem is getting worse. There are many factors that account for mated 1,500 people displaced in that historic mechanization research," he added. area. While insisting t~ is not what he meant ·the sudden increase in house renovation. It and that no new policy toward ag research began in the 1960's with the emerging life­ Despite the fact that many residents are was planned, at the same time Bergland an­ style of the "baby boom" generation. Young suffering from the renovation trend, there nounced the formation of the new task homeseekers were tired of seeing the same are some rehabilitation proJects and services force to oversee USDA research. old thing found in many of the suburban that are working to help ease the strain. For "At this point, I'm sure no one knows how houses, and therefore, chose to redecorate instance, the nonprofit Savannah Landmark many-or how few-research projects in­ older -·homes to fit their taste. Another Rehabilitation ProJect in Savannah, Geor­ volve the dubious use of federal money. factor waa the construction slump of 1974- gia, is trying to give lower-income fam111es a With regard to research in mechanization 1975. This meant that fewer homes were share in urban renewal. They hope to ren­ that coUld lead to large-scale labor displace­ being built to meet an expanding demand ovate 600 units over the next decade in the ment, our initial estimates do indicate-that and caused the housing costs to skyrocket. In addition to this, energy costs lntluenced city's Victorian district and rent the dwell: under the fiscal 1980 budget at least a mil­ tngs to lower income families. Beth Reiter, lion dollars in federal funds are involved," many Americans to put aside their housing said Bergland. · preferences and find close-in living houses proJect director said, "It's totally inhumane USDA's budget office told us that Berg­ where they would have public transPort&· to biunp- these people out. Many of them land's million dollar figure included tion. have lived there as much as 30 years, and $400,000 for mechanization .research that In many cases, the transformation haa the neighborhood is vital to them... • USDA has been funding through the states, indeed been astonishing. Single-family In addition to this. top officials of the De­ plus $800,000 out of USDA's $9.5 million houses have been converted to multi-unit partment of Housing ~d ·urban Develop. budget for "equipment related work." use. Large apartment complexes have also ment or BUD say that cities can help dis· . The thl,nk1ng behind this policy shift on been converted to high-rent apartments, placed familles by using · existing federal mechanization Is regrettable. Inflation is a condomtniums or expensive ·townhouses. tools. For example, BUD will provide funds big problem-increasing productivity will Apartments that rented for $150 a month to renovate 38,000 homing units in 118 help solve it, we are told. What is "large­ are magically .shaped into $90,000 town­ cities undergoing neighborhood changes. scale labor displacement" it not increasing. houses. Furthermore, there are IXeighbor· Still another example would be the program productivity? hoods which were once occupied by lower­ income famuies and considered as slums, which requires cities where renovation 1s which are now thriving with young couples, boomlnt, to explain how they will use their . FAlllll TltADZ SURPLUS. business men and women and higher income share of the nearly four billlon dollars in With to~ agrlcuJ~ural exports at $31.9 familles. One example would be Washing- . annual funds, to tackle displacement. Final· billlon and total imports at $16.1 billion, the ton's Capitol Hill, :which .was mostly occu­ ly. we take note of the counseling program agricultural trade balance was a favorable pied by poor and black residents ten years which 1s · also set up to aid displaced resi­ · $1~.7 billion in the 1979 fiscal year. ago. However. today, according to George dents. About thr.ee million dollars was But. this country both exports and im· Washington's University Department of awarded last year to community groups to ports a lot of things that are not in the agri­ Urban and Regional Planning, eighty per inform victims of displacement of their cultural category. U.S. exports in flscal1979 cent of its residents are white, ninety per rights and h~lp them find a home. on everything, including agriculture, had a cent earn more than $20,000 a year, and total value of $167.4 billlon. However, these programs cannot possibly their ave~e age is only thirty-five. be of· any assistance to the displaced resi­ The total on all impo~. agricultural, on In most cases, municipal government is and otherwise, was $194.6 billlon. delighted with this renovation boom be­ dents unless they are effectively used. So, the total trade balance was a minus cause of the higher tax revenues that result There have been complaints that families $27.1 billion. · when old buildings are redeveloped. As which are not entitled to receiving low-in­ But this adverse trade balance would have lower-income residents are· forced to move terest rehabilitation loans have been receiv­ been $42.9 bUlion had it not been· fQr agri­ out of the city; spending for welfare and ing them and that city officials are doing a culture's trade surplus.e other social services drop. poor Job of aiding those who are in need of On the other hand, we must take into con­ help. Therefore, I feel the displaced resi­ sideration · the displacement problems dents should take it upon themselves to see RENOVATING OUR AMERICAN - caused by this renovation rush. Usually, the that · they receive all of the benefits, and · CITIES first to be affected are the elderly, the poor, federal aid to which they are entitled. the Blacks, and the Latinos. They are In concluding, I would like to state that HON. MICKEY LELAND driven out of their homes when new owners housing renovation is one giant step to­ cease maintenance and begin regene~tion. wards the progress of our American cities. I· o:r TEXAS Displaced residents are forced into a con- reel that it is contributing to the beautifica· IN THE HOUSE OF .REPRESENTATIVES stricting, Unattractive _ housing market. tion of our cities as well as providing more Their new neighborhoods are usually not as Tuesda1/, March 18, 1980 sate or decent as the ones they used to live housing for the overly populated areas. However, I strongly believe that a better so­ • Mr. LELAND. Mr. Speaker, Nelly ln. "They are ·losing accessib111ty to public lution for aiding the displaced residents is Trevino, one of the winners of "The transportation and important social serv­ urgently needed. I believe that the funds · FUture of America" essay contest in ices. They face being disconnected · from being provided for these residents are suffi. Houston, Tex., was ~warded a trip to their communities and their cultural ties,"' says Margarita Suarez, a community orga­ cient if adequately used. We must not allow Washington, D.C., -on October 21, niZer in both Alexandria and Adams this renovation trend to short-change the 1979. Her winning essay entitled "Ren- Morgan, Virginia. · unfortunate lower income families. As · ovating Our American Cities" brings Furthermore, crime, family instab1llty, Joseph F. Timllity, chairman of the Nation­ to light some interesting realities. Miss chronic un.employment and the emotional al Commission on Neighborhoods. said, Trevino is a student of the Stephen F. · consequences of ghetto life are bound to "Communities need to encourge the move­ Austin High School in Houston, Tex. I multiply as many lower-income families are ment back to the city, but they have to pre­ am more than proud to have her as forced to live in these neighborhoods. serve economic diversity and provide for one of my constitutents Mr Speaker For example, an eighty year old San Fran- those who have stuck it out through the " · · rt' cisco man with a blind wlfe, brandished a bad times.''• I introduce Renovating Our Ame • weapon while resisting police and was acci- can Cities" by Nelly Trevino: dentally shot and killed. Other senior citi- •Beth Reiter, "Fixing Up Big City Neighbor­ RENOVATING Ot11t AMERicAN CITIES zens have committed suicide rather than hoods: Who Loses Out... U.S. News and World ·Looking into the future of our American leave old neighborhoods. · Report, February 19, 19'19, p. '13. cities, we find housing renovation to be a •Joseph F. Tlmlllty, "Fixlne ·up Big City Nellh· maJor concern that wUl affect the lives of aMargarita suarez, "Gentrtfyme the Ghetto... borhoods: Who Loses Out", U.S. News and World thousands of American people. The renova- Progressive, January 1G'l9, p. 31. Report, Feb. 19, 1979, p. '12. 5792 EXTENSIONS OF REMARKS March 18, 1980 A LEGISLATIVE REMEDY FOR <2> by adding the following new sentence <3> by striking out clause : "With respect <4> by redesignating clauses . to· employment i:r, any unit of t~e legislative and as clauses , , and . re- branch of the Federal Government , authorities grant- EFFECTIVE DATE · OF INDIANA ed in this subsection to the Civil Service SEC. 8. Except as provided in subsec­ Commission shall b~ exercised by· the Equal IN THE HOUSE OF REPRESENTATIVES Employment Opportunity Commission.". tion , the amendments made by this Act shall take effect on the date occurring 30 Tuesday, March 18, 1980 LABOR-MANAGEMENT RELATIONS days after the date of the enactment of this e Mr. QUAYLE. Mr. Speaker, I have SEc. 3. Section 2<2> of the National Act. today introduced a bill to end the Labor Relations Act, relating to the defini­ (b) The amendments made by section 7 of double standard which Congr~ss has tion of employer <29 u.s:c. 152<2», is this Act shall apply to all taxable years be­ practiced by exempting itself from amended by striking out "but shall not in- ginning after December 31, 1979.e clude the United States or any wholly laws which it mandates. for the re-· owned Government corporation, or·" and in- maining 230 million Americans. serting in lieu thereof "the' United States, The imperial Congress forces indus- and any unit of the legislative branch of the LAWS TO CONSIPER try, business,-labor, the medical and United States, but shall not include". academic communities, and all private Section 7 of the National Labor Rela- HON. JAMES M. COWNS citizens to abide by the Occupational tions Act, relating to the right of employees OF TEXAS Safety and Health Act, the Fair Labor to organize and bargain collectively <29 Standards Act, the Privacy Act, Free- U ·S ·C · 157)' is amended - 11'1 THE HOUSE OF REPRESENTATIVES dom of Information Act, the· Civil <1> by striking out "Employees" and in- Tuesday, March 18, 1980 sertin& in lieu thereof "Except as provided Rights Act of 1964, the Equal Pay -Act, in subsection , employees"; e Mr. COLLINS of Texas. Mr. Speak- the National Labor Relations Act, and <2> by inserting "" after "SEc. '1."; and er, we pass many laws up here. In the Social Security Act-but it <3> by adding at the end of the section the . passing these laws, it is good to re- exempts itself. following riew subsection: member some of the natural laws that Congress is an employer as well as a " Nothing contained in subsection seem to be taking place. One of· my National Legislature. We employ a of this section shall be construed to limit friends ln Te~as gave me a list of work force of over 40,000 and operate · the application of section '~ 311 of title 5• them. We might keep these in mind as on a budget of nearly $1 billion a year. ·United States Code.''. Texas laws for future evaluation: Where does Congress, a body elected FAIR LABOR STANDARDS Murphy's Law: If anything can go wrong, from i.nd for the people, to serve the SEC. 4. Section 3<2> of the Fair it will. . people and work their will, ' get the Labor Standards Act of 1938, relatliig to the O'Tool's Commentary on Murphy's Law: definition of employer <29 U.S.C. M h timist notion that it is above the law? We ·203 in: any unit of the legislative branch away; if it's bad, it happens. try and all segments of society. of the Government or in any unit of the Ju;. Howe's Law: Every man has a scheme that Perhaps if we were. subject to the dicial branch of the Government which has will not work. · laws we enact, there would be greater positions in the competitive service,". Etorre's Observation: The· other line caution and responsibility exercised in occ;uPATIONAL sAFETY AND HEALTH moves faster. harnessing the country with overregu- SBC. _5. Section 3 of the· Occupational Law of Selective Gravity: An object will lation. · · &fety and Health Act of 1970, relating to fall so as to.do the most damage. The eight laws, which . I have cited, definitions <29. u.s.c. 652>, is amended- · Jenning's Corollary: The chance of the were Intended to promote the welfare <1> by striking out", but does not include bread falling with the buttered side down is · · be b fi the United States or" in paragraph <5> and directly proportional to the cost of the of the worker. They have en ene - inserting ·In lieu thereof .., but does not is not worth doing at all, it is not worth pocketbooks of Americans. inc'lude"; and doing well. It is. time that Congress took some of <2> by inserting "" in paragraph <6> The Golden Rule of Arts and Sciences: aUon that confronts our fellow citi- after "affects commerce". · Whoever has the gold makes the rules. _ Segal's Law: A man with one watch knows zens. PUBLic INFORKATIOlf what time it is. A man with two watches is The bill follows: SEC. 6. Section 552 of title 5, United never sure.e H.R. _ ~ta=e~::: ~1~~ ';,~~11~ 0~:n~a:!~! A bill to make certain laws relating to equal pendent regulatory' agency" and inserting in TAX CREDIT OF AMERICANS employment opportunity, labor-manage- lieu thereof "any independent regulatory LIVING ABROAD ment relations, fair labor standards, occu- agency, or any autl].ority of the Congress.". pational safety and health, ·public infor- sociAL SECURITY mation, and social security .applicable to HON. BILL ALEXANDER the Federal Gove~ent and the Con- SEC. '1. Section 210<6> of the gress. Social Security Act, relatirig to. the defini- . OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES Be it enacted. by the Senate cmcl. House of iton · of employment <42 tJ.s.c. · 410 <6XC»• is amended- Tuesday, March 18, 1980 Repreaentativea of the United. State& of <1> by striking out "or Vice President" In America in Congre11 assembled.. That it 1s clause <1>; e Mr. ALEXANDER. Mr. Speaker, I the purpose of this Act to make certain laWs . <2> by striking out "or as a Member, Dele­ am inserting another issue dealing apply· to the Congress and the Federal Gov- gate, or Resident Commissioner of or to the with the tax credit Americans living ernme~t. . Congress" in clause <1>; abroad receive for 'the taxes they pay EQUAL EMPLOYJIENT OPPORTUlfiTY (3) by striking out clal\Se·(ii); and while living and working abroad. The SEC. 2. (a) Section '117 of the Civil Rights (4) by redesignating clauses <111>, Section 3121 of the Internal this summary states the case concise- · <1 > by striking out "in those units of the Revenue Code of 1954, relating to the deft­ ly: legislative and· judicial branches of the Fed- nitlon of employment <28 U.S.C. 3121 Issm:No. 28 eral 1Govemment having positions in the · and · (1) by striking out "or Vice President" In . for Taxes Paid Abroad. ·· inserting in lieu thereof "in all units of the clause <1>; · Summary of the problem: In its .first legislative branch of' the Federal Govern- <2> by striking out "or as a Member, Dele­ report, ACA gave a detailed explanation of ment having positions ·in· the competitive gate, or Resident Commissioner of or to the how many foreign countries choose to raise aervl.ce"; and Congress" in clause <1>; · their government revenues from a different· March 18, 1980 EXTENSIONS OF REMARKS 5793 mix of direct and indirect taxation from States chooses to giye deductions at home TAX INDEXING that used in the United States. Since the for State sales taxes and denies the same de­ U.S. will only give credit against U.S. tax li· ductions · abroad because of "administrative abilities for taxes paid abroad that are fully burdens" for implementation of the same ·HON. DANIEL B. CRANE congruent with U.S. income taxes, many deductions this seems hardly fair. If the QF ILLINOIS overseas Americans are being doubly taxed United States wants to pretend that its cost­ IN THE HOUSE OF REPRESENTATIVES and denied credit for taxes that have in eco­ of-living deductions abroad are meant to Tuesday, March 18, 1980 nomic reality been paid. compensate for every case In which a sinil­ ACA's question: If the United States must lar form of denial. of U.S. comparable deduc­ e Mr. DANIEL B. CRANE. Mr. Speak­ insist on being the only major country to tion or credit 1s inflicted on those abroad, a er, I am sure many ot' us are unaware subject its overseas citizens to double tax li· much better analysis should be made of that there is something rising faster ability, why does the U.S. not give a more what is going on abroad. than prices these days-taxes. generous treatment to the different forms of taxes that are paid abroad in terms of · It should be recalled that In the case of In fact, taxes are now· going up at a credit against taxes deemed due to the U.S. sales tax at home, not only 1s there a gener­ rate nearly twice that of inflation. Government? al tax deduction for different revenue Americans pay more in taxes than The President's reply: "Foreign sales classes, but there is also provision for spe­ they do for food, housing, and cloth­ taxes have historically not been deductible cial deductions for special purchases such as mg. for U.S. income tax purposes because of the cars, boats. trailers. etc. Neither the aeneral Inflation-the cruelest tax of all-ar­ administrative difficulties of checking on so deduction nor the special case deductions tificially expands our incomes so · we many different systems. However, under the are given abroad, yet the VAT paid on these pay more and more taxes· while at the Foreign Earned Income Act of 1978, qualify. items abroad is almost always much higher ing U.S. citizens working abroad are allowed overseas than·in the United States. same time our purchasing power is de­ creased. Tax indexing would adjust -~ to deduct a cost of living differential for We ask the President to restudy this im· excess living costs abroad. Foreign sales portant issue and propose a more equitable downward the tax rates on inflated in­ taxes• .' including the value added taxes method of allowing deductions abroad for comes, _returning the situation to what , are reflected in the cost of living the same items that are covered at· home. It was before the most recent ·infla­ index; Moreover, unlike state . and local We would prefer to have the President tionary spurt. income taxes. which may only be deducted accept to suggest that the United States It is not a cure for inflation. Index­ in computing taxable income for Federal . ing simply acknowledges and repeals income tax, income· taxes imposed by politi­ conform with the overseas tax practices of cal subdivisions of foreign countries may be the rest of the Free World.e the hidden tax. credited against Federal income tax. reduc­ The Danville Commercial- · ing the tax dollar for dollar. This credit pro­ News, · my hometown newspaper, has vides significant advantage to Americana urged this Congress to enact, tax in­ abroad who are subJect to foreign income QUICK RED CROSS RESPONSE dexing legislation, and ·I wholeheart­ taxes. For example, in Switzerl~d. the total TO LIVERMORE EARTHQUAKE edly agree. Swiss income tax burden is higher than in The editorial follows: the United States, yet the income tax levied by the national government is insignificant HON. FORTNEY H. (PETE) STARK [From the Commercial-News, Feb. 20, 19801 IT'S TIME TO ADoPl' TAX INDEXING PLAN . Being allowed to credit income taxes OP CALIFORNIA paid to the cantons 1s therefore a very sig­ · We all know last year's annual inflation nificant benefit to U.S. citizens living In IN THE HOUSE. OP REPRESENTATIVES rate of 13.3 percent 1s no laughing matter. Switzerland." · Tuesday, March 18, 1980 Thus, it disturbs us that at least some fac­ The President Justifies the disallowanCe of tions of our federal government have found credit, or even a deduction, for ,sales taxes e Mr. STARK. Mr. Speaker, I would somethlna in certa!n phases of it to give or VAT abroad on the grounds that it would llke to give special recognition to the themamUes. create an administrative .burden to give this We refer to the Bureau of Internal Reve­ deduction or credit. The President has not volunteers and staff- of the Oakland­ nue and budget-conscious people in both the told us whether this failure conforms to a South Alameda County chapter of the executive and legislative branches who basic standard of equitable treatment, or American Red Cross for the excellent claim kudos for the abutty to increase feder· not. emergency assistance provided to the a1 spending Without a higher deficit. Secondly, the President informs us that victims of the January 24, 1980, earth­ The Advisory Committee on lntergovem· the cost-of-living deduction covers the VAT quake in Livermore, Calif. mental Relations has put its finger on a payments that are made abroad. This would factor that should take some of the wind be a surprise to. Americans living in the Within an hour of the disaster, an out of their sales. The U.S. Tax Code is pro­ United Kingdom paying a 10 percent VAT emergency co~d post was ·set up gressive which means that individuals . pay on most of their purchases because the cost­ and an emergency shelter operating. proportionately more ·in taxes as they r~ of-living deduction they are granted comea Rooms were reserved at a nearby hotel ceive higher· wages to keep them up with to a total of $300. per year. It would also hikes-In the cost of Uving; come as a surprise to an American livina In for those temporarily homeless: meals The fly in the ointment is that as incomes France because someone buying a new car and refreshments were available and increase, the individuals slide into higher there pays a VAT of 33 percent on the-pur­ -first aid administered. Victim welfare tax brackets and this results In a multimU­ chase price of the car. and given the high information was provided to concerned lion-dollar "windfall" gafit in revenue. Law­ cost of cars abroad the full cost-of-living de­ friends and relatives and welfare case­ makers are happy to see that happen .with­ duction for a single person In France of work was begun. _Later the Red out any of them having to vote for a tax in­ $4,500 could go in great part for a car"pur­ Cross crease. chase alone not counting any of the other helped those on fixed incomes and not In the Senate, Robert Dole. R .• Kan., is a expenditures during the year on which a 1'1 covered by insurance· secure their prime' supporter of indexing. His congres­ percent VAT must be paid. · mobile ·homes on blocks. Communica­ sional . Joint Economic Committee found Third. the President -implies that the U.S. tions were established · with city and that for the 197g tax year alone the federal Government 1s being generous In giving a county offices of emergency services, government w1ll pick up a handsome significant "benefit" to Americans living In "hidden tax increase" of $35 'billion because countries such as Switzerland by allowing a the Radio Amateur Clvll Emergency of these inflationary bracket Jumps. In fact, credit against U.S. tax for income taxes ·paid Servic;e-RACES-police and fire de­ the impact of inflation on taxes 1s even to Cantonal authorities. We wonder com­ partment. and the media. · greater when the increase in Social Security pared to whom this 1s meant to be a benefit? Time-spent in disaster tralnlng was deductions-also tied to infle.tionary wage Compared to Americans living iil other jumps-Is consicfered. countries abroad? No. Compared to citizens eVident and. resulted in exemplai-y .CongreSs also. has been examining index­ of other nationalities living in Switzerland? teamwork and prompt assistance. ing as part of its consideration of the wind­ No. Compared to Americans living In the Throughout the emergency, Red CrosiJ fall on profitS tax. There are an estimated United States who enJoy having only one voiunteers and staff were compassion­ 40 to 45 proponents of indexing in the . tax obligation rather than two? We doubt lt. ate, efficient, adaptable, and quick to ·Senate. For that matter, an indexing pro­ ACA's renewed question: U the United respond. I commend· Livermore's Twin posal .recently lost on the Senate flOQr .by a States must insist on maintaining ita unique relatively small margin. form of citizenship based taxation . -for Valley region and the entire Oak­ Although Federal Reserve ·Board Chair­ Americans abroad, it would seem Imperative land-South Alameda County chapter man Paul Volcker OPPOSes ·indexing on. the that some basic definition of what Is equita­ of the American Red Cross. They were basis that it would permanently build infla­ ble tre{Ltment must be given. U the United more than equal to the emergency.e tion into the wage-tax system. the new 5794 EXTENSIONS OF REMARKS March 18, 1980 study by the advisory commission under· REALITIES OF OUR MILITARY cerns" to my colleagues and to other scores the present impact of inflation on MANPOWER .SITUATION readers of the CONGR.ES.SIONAL RECORD: taxpayers. STA-rilo:NT OF FINANCIAL CONCERNS For example, a family of four now earning HON. BOB WILSON It is vitally important to point out to·the $15,000 is In an 18-percent tax bracket. By American people that an American boycott getting a $1,500 per year lncrea.Se-to keep OP CALIFORNIA of the 1980 Summer Olympic Games in up with inflation-:this family jumps Into IN THE HOUSE OF REPRESENTATIVES Moscow is designed to be a punitive measure the 21-percent bracket which diminishes the Tuesday, March 18, 1980 towards the Soviet Union if they fail to value of its $4,000 In personal exemptions remove their forces from Afghanistan. by 10 percent In spite of an Increase in its e Mr." BOB WILSON. Mr. Speaker, I We should not let this action become a pu­ tax bill from $1,242 to $1,530. On this basis, find the President's warning to De­ nitive measure against our own athletes, the family's ·actual Income has grown only fense officials to stop bellyaching who will be asked to pay the price by not 10 ·percent-still shy of the inflation rate­ about pay as out of touch with the re­ going to Moscow. · · . while its total tax ~ has Jumped 23 per­ ·Urifortunately, public attitude seems, at alities of our military manpower situa­ the moment, to assume it is Inevitable that cent. tion as was his veto on WedDesday of the American team wili not be participating What's worse, It's been go~g on for longer the inilitary physicians' pay bill. · in the Summer Games. Thus, In the public's than most people realize. Even last year, Obviously, Mr. Carter has not talked mind there Is no further need to continue Congress counted on that same cycle to pro­ to the troops· in the field or to their private financial SllPPOrt of the United duce at least $15 billion toward shrinking wives who are forced to . use food States Olympic athletes or the United. the deficit for fiscal1980. And our congress­ stamps in order to subsist in many States Olympic Committee. men actually voted at that time not to tell high cost areas. It would behoove Mr. Nothing ·could be further from the truth. taxpayers about it. The United States Olympic Committee Carter to take a few minutes to read has already Incurred upwards of $30,000,000 An amendment to the fiscal 1980 budget the recently published study by resolution setting revenue and spending in expenses for preparation and training of former Defense Secretary Mel Laird, our Olympic teams and other responsibil­ limits and the size of the deficit was pro­ entitled "People, Not Hardware: Tpe ities. At the same time, contributions have posed by Rep, John Lashbrook, R-Ohio. He Highest Defense Priority." Even for 8lowed appreciably because of the uncer­ wanted the House Budget Committee to tainty of the situation. · This leaves the produce a special report Indicating how those of us who have been talking about the pay and retention problem United States Committee with the distinct much of the anticipated revenue Increase possibility that lt could be faced with seri· was attributed to inflation as opposed to for some time, it is a sobering dose of the man:Power crisis in 1980, rather ou8 financial ·consequences. Contingency growth In the Gross National Product plans are already being drawn up to ~urtail . than the President's rose colored all activity at training centets because of glasses recollection of his "good ol' His amendment was voted down, 112-56. the lack of money. The USOC Just 'cannot days" in the Navy in 1953. We are survive a totally unjustified and aggravated Now, as a result of its study, the commis­ losing our best people, the highly shortfall in revenues. sion urges Congress to "Index" the T~ skilled technicians who are the back­ It is most urgent that the overall responsi· Code which would prevent automatic tax bone of the fleet and the operators bilities .of the USOC be brought to light: gains by both the federal and state govern­ and maintainers of our sophisticated 1. Preparation of our teams for the Pan ments. Under Indexing, tax codes would be weapons systems. American Games. automatically adjusted for inflation so .the 2. Organization and operation ·of the Na­ government could not profit through wage Unless we reverse this trend, I · de­ spair for our future military prepared­ tional Sports Festival. Increases. Such features In the tax code as· 3. Financial subsidies for the nunierous personal exemptions, -standard deductions ness. The troops need leadership and athletic federations In the United States and Individual tax brackets would be adjust­ understanding, not admonition, from fieldln·g · teams for various international· ed to reflect tlie inflation for the year In their Commander-in-Chief.e competitions. which the tax is paid. 4. Establishment, operation and mainte­ Since something similar happens at the nance of permanent training facilities. state level, it is encouraging to see that six 5. The administration of a sports medicine states-Arizona, California, Colorado, Iowa, U.S. OLYMPIC COMMITI'EE research program. Minnesota and Wisconsin-have enacted In· NEEDS FINANCIAL HELP · 6. Assembly of the teams to compete In dexlng codes In recent years. the Winter and Summer Games. Of the current $43 nrl!lion USOC Budget, Indexing merely makes the government- HON. JONATHAN B. BINGHAM only about $3.5 million is· earmarked for ex­ at all levels-play fair with taxpayers. It OF NEW YORK penses In conJunction with the 1980 makes the government call its shots, botlt IN THE HOUSE OF REPRESENTATIVES Summer Games. on Income and outgo. The idea of being able United States Olympic Committee activi­ to spend more and still shave a little off the Tuesday, March 18, 1980 ties are and ·most definitely should continue federal deficit because of getting more from • Mr. BIN.GHAM. Mr. Speaker, I re­ to be funded by private sector contributions. taxpayers. by way of inflation is not playing cently received a distressing letter We are all hopeful that our Government's fair. from the New York State Olympic posture towards the Soviet Union will prove to be successful. It is obvious, that 'if we are As Dr. Jack Carlson, chief economist of Committee describing a virtual cessa­ successf\1\ we must be prepared to send a the u.s. Chamber of Commerce says, "This iion of public contributions. strong team to M6scow. is not what taxpayers had in mind when While I am wholeheartedly in favor If training and preparation ceases in the they adopted tax-cutting proposals like of American withdrawal from the near-future for lack of money, we automati­ Proposition 13 In California and the host of Moscow games, we cannot abandon cally .handicap our athletes severely In both other protest measures across the country. the U.S. Olympic Committee. Their the short and long term. They want control of spending as well as duties on behalf of American athletes In the event the world situation forces a tax rates." go far beyond the 1980 summer games. United States refusal to send a team to the The only way to get that is Indexing. Of the current $43 million USOC Summer Games In Moscow, International athletic competition-:-if only on a. limited With a "friendly" contingent already pres- budget, less. than $4 million is ear­ "free-world" basis-will surely go on. ent In Congress, it would help to let our fed- marked for expenses in conjunction We are asking for a tremendous sacrifice eral lawmakers know that we want thein to with the Moscow games. Preparation of our athletes In these troubled times­ consider this measure as something that for the Pan-American g&.mes and orga­ both emotionally· and financially. will be important to us as we look toward nizatlon of the National Sports Festl· Traditionally. great pride is taken in tne upcoming elections. val are only two of the efforts which fact that America doesn't ·send our athletes We also should urge our state legislators survive on public contributions. to the Olympics, Ame~cans do. We suggest that if tnese same athletes are to put Illinois on the list of states with in- In support 9f the many diligent dexing laws. American· athletes who have trained asked. to forego the culmination of. years· of Those who .have been brave enough ~ long and hard to prepare for intema­ effort, expense and dedication, the Ameri­ take a stand In favor of it need encourage- tional competition in 1980, I commend can public demonstrate their admiration ment. Those who have held off need to and appreciation for their personal sacrifice know how important it is to the people who the New York State Olympic Commit- by contributing financially In a greater are.havlng to pay the inflated tax.e . tee's "Statement of Financial Con- measure. · March 18, 1980 EXTENSIONS OF REMARKS 5795 An American boycott does not mean there it contains more carefully crafted in­ Let us, however, suppose-let us pray­ will be no further international athletic sights about the grave state of Ameri­ that it Is not already too late. Let us sup. competition. Let not our own request for can security than the last 2 tons of pose further that the Soviets do In fact sacrifice become, a permanent penalty on launch a "peace offensive:• Will the Ameri­ our own American athletes.e newsprint anyone has read on the sub­ can giant. so recently roused. be lulled back ject. Mr. Podhoretz' essay is perhaps to ~leep? No confident answer can be given the most persuasive analysis of the to that question. .On the one hand, the sopo­ TRIBUTE TO MRS. REBECCA origins of the West's plight in · print. rific forces among us remain powerful. CASAUS GALLEGOS "The Present Danger" is the work of a There is, first and foremost, the fear of shrewd observer of both the American war-not only nuclear war but any kind of and international scene assimilating war. This normal human instinct has been . the disparate threads of almost-forgot- strengthened and Justified by a culture HON MANUEL LUJAN JR. which In recent years has treated the pur­ • ' .ten international events of decades suit of Individual fulfillment as an absolute or NEW MEXIco past. stamping their imprint on . and Wednesday, March 12, 1980 Mr. Podlioretz• works are always of which 1s very nearly Incapable of conceiving • Mr. LUJAN. Mr. Speaker, too often vital interest; "The Present Danger" is anything worth fighting, let alone dying, for. "Anything" in this context preeminent­ in our fast-paced society we neglect . essential reading for anyone in public ly Includes the United States. which contin­ those who . have accumulated years life today. In decades past when the ues to be castigated In many quarters within and gathered wisdom. Today I would United States enJoyed a substantial America itself as the guilty party in every like to take the time to comment on a margin of military superiority it mat­ situation that arises. It is our fault that the woman who at the age of 86 is leading tered little what the Soviet Union or Khmer Rouge murdered nearly half the a life that would be the envy of a any other adversary did to build up its population of Cambodia ; it Is our fault . This lady, a descendant of some of American advantage was so vast. As that the hostages were taken In Iran (be­ the most prominent colonial families Mr. Podhoretz so effectively reminds cause we supported the Shah for so many years>; it is even our fault that the Soviets in New Mexico, experienced early sue- us, this margln of safety has been dis~ Invaded Afghanistan . Casaus Gallegos became a teacher. danger It faces, and to take suitable re­ E\ren some Influential commentators who Now, 60 years later, at the age of 86, medial action. Although limitations ·on do not reflexively blame the United States Mrs. Gallegos is continuing·. in that · space prevent insertion of the entire for everything eviJ that happens In the world often explain Soviet behavior In ways profession in Edmonston, Md. She text of Mr. Podhoretz' essay, I have se­ calculated to minimize American alarm. The owns and operates her own nursery lected .an excerpt which provides the Soviets. they tell us, are not really expan­ school where she works as much as 12 author's riews on remedial action. The sionist and certainly not out to dominate hours a day. essay must not be overlooked. the world; all they want is to protect their Mrs. Gallegos has instilled character· The excerpt follows: own borders and their own security. Even in thousands of youngst;ers durina her TKE PREsENT DANGER the Invasion of Afghanistan itself has been Interpreted by several such commentators career, not to mention the five chll- on Nol'ember 4, 19'79, the day the Amerl- not as a sign of Soviet aggressiveness but as dren of her own. who have expert- can embassy 1n Tehran was seized and the a symptom of Soviet weakness . A .compassion for her fellow man. Mrs. troops Invaded Afghanistan. another period striking instance Is Arthur Schlesinger. Jr. Gallegos has favorably guided the began. In the 40's and 50's, when the Soviet Union lives of thousands, and in doing so has The past being . easter to read than the was very much weaker than the United made a great contribution to our present, we can describe the nature of the States. Schlesinger expressed great anxiety Nation. · age now over with greater assurance than over the Soviet threat: yet now, when the the one Into which· we are at this very Soviet Union Is at least as powerful as we I am sure my colleagues Join with moment Just setting a hesitant and uncer­ are and by any obJective standard consti­ me today in wishing · Mrs. Gallegos taln foot. Yet even to recognize whence we tutes a greater threat. he .keeps telling us continued success for the future and have -come. let alone whither we are going, how beleaguered and toothless the Russians in thanking her for a lifetime of work will require an effort to clear our minds of have become. for her family, community, and coun- the cant that prevented an earlier under­ All these elements. and others too. of the try·• · standing of the terrible troubles Into which post-Vietnam mood remain In place: togeth­ we were heading. I propose that we start. er they suggest a preemptive move toward then. by renouncing the general Idea that self-Flnalandlzatlon. On the other hand, a NORMAN PODHORETZ ON THE before Iran and Afghanistan we had moved contrary tendency, and a very strong one, PRESENT DANGER from "cold war" to "d~tente" and that the has been developing In the United States· old political struggle between "East" and · toward what might be called a new national­ "Weat" was yielding In importance to a new ism. The eruption of patriotic feeling In re­ HON. JACK F• . KEMP economic conflict between "North" and sponse. to the seizure of the hostages was OF NEW YORK "South". the most visible manifestation of this ten­ The assumptions behind this scheme have dency, but there are many Indications that IN THE HOUSE OF REPRESENTATIVES all been shattered by ·the events of the past it was not created or caused by Iran. One · Tuesday, March 18, 1980 few months, but they have served so well sigtltficant piece of evidence is the steady • Mr. KEMP. Mr. Speaker. there have . and for so long to disguise . and deny the rise re«iatered by public-opinion polls since ominous consequences of a tilt In the bal· the early 70's In support of Increased de­ been few essays which have been able ance of power from the United States to the fense spending and a correlative rise In to summariZe the course of post-World Soviet Union that a fierce effort is being favor of the use of force to protect Ameri­ War II history more effectively than made to rescue them from diScredit. If that can Interests. Norman Podhoretz' essay, "The Pres­ effort should succeed, more would be lost This change has by no means been con­ ent Danger," published in the March than intellectual clarity. Indeed, I would go fined to the attitudes of the general public. 1980 issue of Commentary magazine. so far as to aay that it would signify the As the course of the SALT debate has re­ The summary is not that of a histori­ final collapse of an American resolve to vealed, there Is a much greater willingness an. although it more perceptively inte­ resist the forward surge of Soviet imperial· to face the facts of the Soviet military grates America's international experi­ ism. In that ·case. we would know by what build-up than used to be the case only a few name to call the new era iilto which we have years ago In Congress. In the press. and In ence over the past three decades than entered : the Finlandi­ or with alarm, that the most of dynamic the· e~ay that of a journalist though zation of America. force In recent years has been the group 5796 EXTENSIONS OF REMARKS March 18, 1980 known as the "neoconservatives." There are concern. But as it is, and to give us cause for ing one Communist power off· against an· grounds for wondering in what sense most . far more serious concern, the Soviet Union other may be sound geopolitics, but it in· memben of this group are conservatives, is not a nation like any other. n is a revolu· creases the difficulty of explaining to our­ "neo" or any otheJ' variety. But what cannot tionary state, exactly as Hitler's Germany selves and our friends what we are fighting be queationed-and what makes them an was, in.the senae that it wishes to create a for and what we are fighting against. It may unusual phenomenon in the history of the new international order in which it would therefore make It harder to mobilize the po­ American intellectual community-is their be the do~t · power and whose character litical support without which a steady and · highly positive attitude toward American would be determined by its national wishes consistent strategy of containment is impos­ society. Even more significant in this con­ and Its Ideological dictates. In such an sible. text Is their conviction that the· survival of order, there would be no more room for any This problem of mobilizing support is per­ liberty and democracy; here and everywhere of. the freedoms we now enJoy than there is haps even more difficult in Western Europe else, requires the maintenance and exertion at thiB moment within the Soviet Union, or and Japan than it is in the United States. of American power. · any of the other Communist countries, even The farmers of Iowa have already shown Before Iran and Afghanistan, thJs new na­ the most lightly ruled of which are repres­ that they can see beyond their economic in· tionalist spirit had. been spreading in influ· sive beyond the most lurid nightmares of a terests, but the French. the West Germans. ence and growing in intensity; sinoe Iran politically pampered American exPerience. and the Japanese seem to care only, as and Afghanistan. it has all but swept away In short, the reason Soviet Imperialism Ia Jacobo Timerman puts it, about "the order­ the last lingering traces of the post-Vietnam a threat to us is not merely that the Soviet ly supply and consumption of raw materiala mood. No doubt as the weeks and months Union is a superpower bent on aggrandizing and the inviolability of their markets.." wear on. the twin. furies of isolationism arid -Itself, but that it is a Communist state Thus trade agreements between the Soviet appeasement unleased by our humlllatina armed, u Solzhenitsyn says, to the teeth. Union and the West, which were supposed defeat in Vietnam w111 recover from the and dedicated to the desiructlon of the free to create incentives to Soviet moderations, blows of Iran and Afghanistan and will institutions which are our heritage and our have evidently worked in the opposite direc· ·make their presence felt .again. But one glory. To meet what George P. Kennan in tion so far as. Western Europe and Japan senses that the new nationalism is neither 1947 called "this implacable challenge" w111 are concerned. The Soviets have not been insubstantial nor evanescent. It WU1 not demand today, as it did then, that-we recog­ restrained by the cut-off of wheat, but the easily be dissipated and politicians will nize Soviet purposes for what they are. It" Ia French and the West Germans have hesitat· ignore it, if they do, only at extreme peril to tragic that Kennan himself, in 1980, should ed to back even the relatively mild measurea their chances at the Polls. Therefore ~t the be among those workina to prevent such a the President has taken against the Soviet very least, before it runs its course, a variety recognition. Writing of the invasion of Af. Union. Many European commentators-Ber­ of steps will be taken to strenethen our mlll· ghanistan, he condemns the "extravagant­ nard Levin, Jean-Franc;ois Revel, an4 Olivier tary capabWties. Aa "No More Vietnaina" view of Soviet motivation" according to Todd, to name a few-see this as yet an­ meant retrenchment and accommodation. which this "ill-considered" Soviet action was other sign that the process of self-Finland!· "No More Irans" will mean making sure "& prelude to aggressive mllltary moves zation has gone much further in Europe that we never again have to submit helpl~ a~ralllst various countries. and regions fur· than in the United States. But believing as ly to being "pushed around": and as the .tber afield." The AmeriCan response he dis­ mos't of them do that the chief cause of self· main "Lesson of Vietnam" was taken to be misses as "strident"-& case .of "warntn.g Finland.ization is the fear of Soviet power that we must never again intervene into the people p~blicly not to do-things they have . and the concomitant loss of confidence in Third World, the great "Lesson of Afghani­ never evinced any intention of doing." Most American resolve, they also think that a se­ stan" is likely to be that unless we iritervene. astonishing of all, Kennan tells us that he is rious new assertion of American will and under certain circumstances, we will find "not aware of any substantiation" of the ex­ American power might lead to a reversal of ourselves at the mercy of our enemies. travagant American view "in anything the the process and the beginning of a new de­ In my Judgment. even if the new lessons Soviet leaders themselves had aatd or done." termination in the other democracies to were to 10 no further than they have al· Jf he is really lookina for substantiation. I resist what Revel calls "the totalitarian ready gone, they would constitute progress would advise him to begin by reading hiS temptation." - toward a healthier and a safer America. own essay on "The Sources of Soviet Con· The other great question. that inevitably Healthier because self-respect is spiritually duct" which, though written over thirty arises in this connection is how we can superior to self-flagellation. in nations no years ago, tells us more about the invasion speak of a "free world" that includes so less than in individuals: safer because the of Af~rhanistan than the sorry article many dictatorships of the Right. The detetminatlon to defend our own interests Kennan produced a few weeks after the in· answer here-as Pakistan is only _the most w111 make us more secure than the incllna· vasion actually took place. The Kennan of recent cast to make clear-is also based on tion to appease. 1980 sees the invasion as merely defensive: geopolitical considerations. But from the Nevertheless something is still missing has not Brezhnev himself characterized it point of view of freedom, there is a moral from the·new nationalism. In the immediate .thus? The Kennan of 1947 would haYe un­ Justification for preferring non-Communist aftermath of·Iran, there was a good deal of derstood that the invasion represents a new dictatorships to ConlDiunist regimes. To this talk about defending American honor. Since stage in what he described then as the unre­ day it is hard to find a single Communist Afghanistan. most of the talk, in the streets, mitting "Soviet pressure against the free in· ·regime that permits the people living under in the speeches and in the official state­ atitutions of the Western world." it as much freedom as even the worst non­ ments alike, ha8 focused on .defendin« our Of coUJ'Se, in defining our conruct with Communist dictatorships the world has economic· interests. Tliat there Is a political the· SOviet Union as a struggle for freedom known since the death of Hitler. These non­ dimension to this crisis, that something and against Communism, we run into two Communist authoritarian societies are not more is at stake than injured pride or access .great questions. The first concerns China. U free, but they still remain-both Ideological­ to oil, .no one seems to recognize or at any Communism Ia the el)emy, why should we ly and in practice-on the other side of what rate to emphasize. What . this suggests Is be aligning ourselves with China, the other from the point of view of freedom is the that the general American response to Iran great Communist Pc>wer? The answer given greatest of all divides. and Afghanistan, while marking an end to by supporten of the "China card". Is the In resisting the advance of Soviet power, the period of American retreat, has not yet same Justitication that was used for the free then, we a.re fighting for freedom and carried us fully forward into a new period of world's alliance with one totalitarian ruler, against Communism, for democracy and ·containment. · • Stalin, against another, mtler, · who was at against totalitarianism. Yet it is · precisely The problem is that a key term has quiet­ that moment more dangerous. It Is a reason­ this sense of things that the new national­ ly disappeared from the discussion of the able answer. The problem, however, is that ism thus far lacks. Nor does the Carter Doc­ Soviet-American confiict. It is the term whereas Stalin made a. major contribution trine express it With force and clarity. With· Communism. One would think from most of to the defeat of Wtler, Communist China is out such clarity, the new nationalism .is un­ what has been sald in recent months that so.weak that its contribution to the contain­ likely to do more than lead to sporadic out­ the Soviet Union is a nation like any other ment of Soviet imperialism may be neglil(1· burSts of indignant energy. It cannot by with which we happen to be in competition. ble. In order to keep forty Soviet divisions itself supply the .basis of support for what Yet if the Soviet Union really were a nation ·pinned down on the Chinese border-din· Kennan described in 1947 as "the adroit and like any other~if it were, for example, still. ~lions the Soviet build-up has inade it p06Sl­ vigilant application of counter-force at a · being ruled by th~ ~woulcf we obJect ble for "them to spare-we m&y be helping to aeries of constantly shifting geographical to the extension of its power over. the- Per· turn China into a terror to our children and and political points, corresporidlrig to the sian Gulf? What difference would it make grandchildren. And since China's only inter­ shifts and maneuvers of Soviet ix>Ucy." to us? Would we be worse off buying oil est in us· is protection from the Soviet The possibWty that the new nationalism from the Czars than buying it from the 'union, ·if we rely on the ·China card as an _w111 only prove to be a first step toward a re­ sheiks? Might we not even prefer such an excuse for falling to build up our . own dedication of the United States to such a arrangement ? · Soviet rapprochement. · weary and fearful over the years. But "the . We might, though even under those cir­ Another price' of the Ch1ria card is the loss thoughtful observer of Russian-American cumstances we would have cause for -serious of political clarity it inevitably entalla. Play. relations" today w111 no more find "cause March 18, 1980 EXTENSIONS OF REMARKS 5797 for complaint 1n the Kremlin's challenge to The editorial in today•s WashingtOn Washington Post; Mr. Robert J. American society" than Kennan did 1n 194'1, Post· entitled, "The Balanced Budget" Samuelson, ·a writer for whom I have a when he experienced "a certain gratitude . supports the approach set forth in great deal of respect, offere~ a some­ for a Providence which, by providing the H.R. 6821. The Post, editorial st~tes: what different perspective on econom- · American people with this implacable chal· It's Important to subSidize school lun,chea ic conditions in the United States. lenge, has made their entire security as a for the chllcfren of poor families-but nation dependent on their pulling them- there's no need to lasue food stamps _to Whlle it is true that these are not selves together and accepting the responsi- those fam111es to cover those same lunches. the best of times, I think it is helpful billties of moral and polltical l~ershlp PerhaPs you think that 1s a trivial point. to be reminded that we are still a great that history plainly Intended them to bear." but the overlap 1n those twice-subsidized country, and if free enterpriSe can be I quoted these. words earller but they are lunches costs the Government $1.2 b1111on a given the opportunity to accomplish worth quoting again as a stimulus and_as a guide. Unless, of course, It really 1s too year. what. it is capable of, we will reach the late-In which case Kennan's new defeatism This speaks directly to the point of end of this century still a leader w111 prove as appropriate a response to the my proposal, and 1 am pleased to see among the nations of the world. . present danger as h1s magnificent call to this type of support. I am pleased to share Mr. Samuel­ containment was to the danger of thlrt~ H.R. 6821 is a reasonable and re- son's comments with my colleagues: years ago.. sponsible start toward eliminating SWISS B.um: O~s DII'!'ERDT VIEW 01' waste· and duplication in the food UlUTZD STATES BUDGET sAVINGS BY ELIMINAT· stamp program.e lNG OVERLAP IN FOOD STAMP Every once In a whlle, something floata AND SCHOOL LUNCH PRO. across your desk that doesn't .seem to have GRAMS HAPPY ANNIVERSARY much of a moral messag~most things do these days-but Just a lot of good, solid In· HON. MORRIS K. UDALL formation, which, after you've flnlshed sift­ HON •.E. THOMAS COLEMAN Ina through It~ actually ends up saying or ARIZONA something very obvious and important. OF MISSOURI IN THE HOUSE 01' REPRESENTATIVES Just such an item arrived the other Week lN THE HOUSE OF REPRESENTATIVES Tuesda:g, /,farch 18, 1980 from Union Bank of Switzerland, and the TUesday, March 18, 1.980 message was simple: The United States 1s a e Mr. UDALL. Mr. Speaker, March 20 hell of a swell place. e Mr. COLEMAN. Mr. Speaker, along will mark tbe.100th anniversary of the This 1s not said with any sense of gung-ho with several of my colleagues. I have arrival of the first train in .Tucson. patriotism, but Just as a matter of simple re­ introduced H.R. 6821,_a bill designed and 1 wanted to take this brief oppor- ality. The United States has combined a to reduce _overlap between ·the food tunity ·today to extend my_thanks to fabulous endowment of natural resources stamp· program and the school lunch Southern Pacific for this century of wfth some native Ingenuity and hard work · f th t to create an enormously Prod!lctlve econo- program. service to our Part 0 e w es • my that probably still gtves Its people the According to Congressional Budget Without this ra.llroad. the settle- highest standard of living 1n the world. Office estimates, this amendment ment and development of southern Ar· In so many words, that 1s what the report could save about $'100 mUUon in fisc8J tzona and our part of the American· from Union Bank of Switzerland said. year 1981 without depriving any needy frontier· would .have been long delayed Now, we take It as an axiom of modem family of proper nutrition by eliminat- trideed. ~ When the first locomotive llf~r. at any rate. modem life in ad· ing this duplication of services. steamed into . Tucson- in 1~. it sig- · vancect technologiCal societies-that ~e ·Presently. administrators of the food naled the end -of one American era and concept of "standard of living" 1s somethilig stamp program ·do not take into con- the begtniling of another. of an empty one. As material needs have sideration the fact that some recipient The ·railroad brought commerce, become better and better satisfied. other as­ families have children who eat one or opened new. markets for .our farmers pects of life that are difficult, 1f not 1mpo5sl- more free meals a daY in sch oo1 and cattlemen and miners. It brought addedble. to measureslgnlflcance: and ...compare psychological have assumed stress, ·through the Government's programs people to Tucson. and the little town physical surroundings and .a sense· of per­ to aid needy youngsters. The families that began as a Spanish garrison sonal fulfillment. receive full allotments of food stamps, nourished and prospered. Today, · But today's rtslna Inflation has remlilded designed to provide proper nutrition Tucson is Arizona's second largest city us of the underlying Importance of meeting for three meals a day for every and that could not have come to pass baSic material desires. And here, Union member of the family. even though without the railroad. Bank's survey offers an Interesting commen- one or more family members may ac- southern Pacific brought us history, tary on the notion-encouraged by us 1n the tually eat free meals at school too. Tucson .met the men and women media and exaggerated by the .recent -panic This legislation would adjust food of America going to and from two over Inflation-that the Uilited States 1s stamp benefits to families who have world wars-and Presidents-and gen- ~!~C::.Y dropping behind the rest of the ~hildren that receive free meals while erals-and movie stars. Through its lntematlonal network of at school during the day· Southern Pacific is commemoratinc banka and correspondent banks, Union · The CBO indicates that. there would the anniversary with ceremonies in Bank attempted to compare the earnings be very little increase in administra- Tucson on March 20. !,{r. Speaker, I and purchasing power of groups of stmnar tive costs to ins~itute this program, Join an my fellow southern Arizonans workers-ranging from cooks to. electrical while millions can be saved. Under. the in saluting the accomplishment$ and engineers, from secretaries to middle-level provisions of the amendment. adjust- · contributions of Southern Pacific on executives-In 45 of the world's maJor cities. ment schedules would be developed this, their lOOth anniversary of their Four American cities were lnclud­ and local officials. could simply refer arrival in my hometown. ed. and. ~ results lndlcate that the pur- to them to determine the level of We will all be glad to have them for chasing pc>wer of Americans remains sub- benefits for food stamp recipient fami- neighbors for another 100 years.e stantially ahead of most of the rest of the lies·... · world. I would like to assure my colleagues There are tidbits 1n the survey that prob- that this legislation tn no way Jeopar- A DIFFERENT VIEW ·OF THE. ably say something Important about relative dizes or dlminishes the intent of Con- ·tl'NITED STATES national.values. In the United States. auto · d famill mechanics are .better paid than elemen~y ciallygress tochildren see that of- neeneedy Y families,es~ espe-con- HON. G. WIWAM. WHITEHURST school teachers. whlle 1n Europe it'ste hthe tl·nue to receive proper nutrition. In or VIRGINIA other way around. In Chicago, the . ac er earned $20,100 and the auto mechanic addition, eliminating duplication of IN THE HOUSE OF REPRESENTATIVES $23,800: 1n Amsterdam, the teacher earned services will enable the most efficient Tuesday, March $23,300 and the auto mechanic $15,900. In use of resources available. for the pro- · • 18• . 1980 Japan, the gap was even wider: The tea.cber- ·gram and assist in efforts to hold • Mr. WHITEHURST. Mr. Speaker, earned $18,100 and the mechanic $10,100. down Federal spending and bal~ce in his "Economic Focus". column in - omy, and it makes you wonder about all the ACT:-H.R. 1000-AND. TJiE AMER· The United States also does rather well by groups-the auto companies are the latest­ ICAN ECONOMY const~ction workers, but not ao well by parading into Washington these days asking bank tellers. In San Francisco, the construc­ for various forms of protection against com- · tion worker earned $20,400 and the bank petition. They may be looking to do them­ HON.ROBERTK.DORNAN teller $10,600; in Paris, the construction selves some good, but not the rest of us.e OF CALIFORNIA worker earned $7,500 and the bank teller $12,800. The same relationship prevailed in IN THE HOUSE ·oF REPRESENTATIVES most European countries. Tuesday, March 18~ · 1980 These figures inspire intriguing specula­ e Mr. DORNAN. Mr. Speaker, my bill, tions. DQ we value our cars more than our H.R. 1000, the American Tax Reduc­ children? Or do the relatively high earnings of biue collar workers in the United States­ THE RETIREMENT OF DENVER tion Act, would provide. a powedul ex­ and the huge gap between blue collar and DICKERSON pansionary thrust for the U.S. econo­ white collar workers in Europe-reflect an my. That is the conclusion of an ex­ absence here of acute economic differences tensive econometric analysis conduct­ between classes and, therefore, a lack of the HON.AUGUSTUSF.HA~NS ed by Norman B. Ture, Inc., economic class consciousness that characterizes many OF CALIFORNI~ consultants. Dr. Ture, a respected eco­ other countries? IN THE HOUSE OF REPRESENTATIVES nomic authority for 30 years and ad· As interesting as they are, comparisons of viser to Presidents Kennedy and worker earnings across borders tell only Tues~.al/, March 18, 1980 Nixon~ foresees increase~ employment, half the story. It's not what you make so budget surpluses. and incentives for much as what it will buy that counts. ·e Mr. HAWKINS. Mr. Speaker, the We tend to overlook that. The stories we Congress of the United States· has lost reducing infiation resulting·from H.R. hear from overseas almost invariably stress the· services of an outstanding and 1000's enactment. foreign economic success, but we rarely hear dedicated public servant. Denver Dick­ For the RECORD, I am submitting a of the shortcomings. It's only by traveling copy of this important study's sum­ abroad that neople see those shortcomings erson, the staff director of the Joint mary. Among Dr. Ture's. findings are and realize that, for all its flaws, the Ameri­ Committee on Printing, retired Febru­ that 790,000 more full-time jobs would can productive system Is still rather formi­ ary 29. As a member of the Joint Com­ have resulted in 1979 had H.R. 1000 dable. mittee on Printing for the past 3 been law. This increase would. be due In Union Bank's survey, three of the four years~ I have witnessed firsthand both to large increases in private capital U.S. cities ranked at the top of the list in his superlative professional capabili­ formation inspired by provisions ln what worke~ earnings buy, and even New ties and his warm and endearing· per­ the American Tax Reduction Act to· York was well within the top 10. In each of sonal qualities. For ·these and many the cities, a roughly similar basket Of con.. cut ~xes and index tax brackets. sumer goods-consisting of food and bever­ other reasons he wiltbe sorely missed. Considering the new-found desire on age items, toilet and household articles, ap­ Denver Dickerson's outstanding the part of the administration to bal· pliances, clothing, automobiles, housing and career has included many years of ance the budget and combat inflation, a wide variety of services-was priced. The public service both on the State level, I would call to your attention the pro~ bank's economists then constructed an Jection of a budget surplus . in 1982 index based on what "gross" and "net" in his native Nevada, and with the earnings-after deductions for taxes-would Federal Government. He served two with the American Tax Reduction buy, with the bank's headQuarters city of terms in the Nevada Legislature and in Act's passage. 'The budget excess Zurich a.s 100 on the index. 1943 he was ~he youngest man ever to would result, even with tax cuts and The table below gives a sampling of cities: serve as speaker of the house in indexJng, because of. restraints tn Gov- . Nevada. His background as a distin­ ernment spending contained in title IV guished journalist was put to good use of H.R. 1000. The bill presently would Net restrict expenditures to a specified when he served as a correspondent percentage of the gross national prod­ 1 112 no with the 6th Army in the South Pacif­ ~~n;;~SCt :::~::::: :: : :: :: : : ::::: :::: ::: :::::::: :::: : : : :: 2 lll uct. I will· be adding a further provi­ 3 104 . ~~~ ic during World War II. I,ater he sion to the bill to limit Federal spend­ ~$~~:.: =::: : : :: : : :: :: :: :::::: : ::::: :: :: : :: ::::: : :::::::: 4 102 8& served as the executive director of the·· Zurich ...... 5 100 1 ing to the lower of the fixed percent­ New York ...... 6 99 ~ Nevada Employment Security Depart- age of the GNP or a 7-percent increase Montreat ...... 7 !8 94 Dusseldorf ...... 14 86 ment and as a U.S. State Department over the prev1ous year's budget. Under 19 62 ~~ Information Officer at the American ~~~ ::::: : :: : :: : : :: ::::: : : : : ::::::: :: : ::: ::::: :: : ::::: : :::: : :::: 21 61 these provisions, the higher the infla~ london ...... 25 56 rs Embassy in Rangoon, Burma. After 6 tion rate, the smaller would be the years of service as an executive secre­ gain in Oovernnient spending in real tary to former Senator Bible of terms. The greater the desire to in­ International comparisons are notoriously Nevada, Denver again returned to the Inexact, and it probably would be 'a mistake cre~e real spending, the greater the to exaggerate the significance of differences South Pacific·when he was appointed desire to curb inflation. of 5 or 10 points on this index. Public serv­ as Lieutenant Governor of Guam by To briefly summarize the compo­ ices vary President John F. Kennedy. In recent nents of H.R. 1000, tne legislation from country to country, as do national cus­ years he has been a valued assistant to would: Reduce personal income tax toms. Europeans, for example, appear to re­ our colleague Senator HowARD · W. rates 25 percent over a 4-year period; ceive more vacation time than Americans. CANNON, a professional staff member lower the capital gains tax alte'rnative But many of the differences· are simply of the Senate Committee on Rules and to a 15-percent maximum and eliml· too large to be affected by such uncertain Administration and, for the last 7 nate capital gains as a tax preference factors. The basic message here is that item while removirig any limitation on . America's overall "productivity"-as con­ years, staff director of the Joint Com­ trasted to recent changes-remains high. mittee on Printing. the. deductibility of capital losses: None of this means that today's problems · Along the way, both prior to, and in­ index the personal income, corporate of high inflation, high interest rates and terspersed with hiS · varied Govern­ income, capital gains, estate and gift low growth are a mirage. People's fears for tax brackets to account .for inflation; the future ·are real; they wonder whether ment career~ he ha.S also built a repu­ limit Federal spending over a 4-year the pro&perity they assumed would endure tation as a distb:iguished reporter, po­ period to the lower of a fixed .percent­ forever now will vanish like a morning mist. 'litical writer, editor, and publisher of a age of the gross national product or a Though probably exaggerated, these anxi­ variety of Nevada newspaperS. It is 7-percent increase · over · the prior eties underscore the need to understand plain to see therefore, that Denver has year's spending; and require that at ·what makes the economy perform well. earned his time for relaxation. I am And here we're inclined to draw a moral least 2 percent of the Federal budget from Union Bank's survey. Relatively. low sure that all Members of the House be allocated to repay the national food prices and services seem to account for will wish to join me in· wishing Denver debt. much of the American advantage in pur­ a long, happy, and. well-deserved This ·wtu be a crucial year for Ameri­ chasing power. Tltese are two of the most period of retirement.• ca's economy. With productivity and March 18, 1980 EXTENSIONS OF REMARKS 5799 growth_-slowing to stagnating levels. would add up to substantial gains in real TABLE 11-H.R. 1000 PROJECTED BUDGET RESULTS GNP compared to the levels which are· personal savings shrinking to new [In ~ of CUITent dollars] lows, and Federal tax revenues soaring likely to be reached otherwise. Had H.R. 1000 been effective as of the beginning of Maximum Budget to new highs, Congress must act to Year Revenue expendi· SUrplUS revive a ~puttering marketplace. To the year, real GNP would be about $48 bil­ tures or deficit set the economy right requires careful­ lion greater in- 1979 than the amount esti­ mated under present law. By 1988 the gatri 1979 ...... 448.4 I 493.4 (45.0) ly-structured, fundamental alterations would reach $513 billion. 1980 ...... 484.4 527.9 (43.5) in the way the Government takes, and 1981...... 547.4 564.9 (17.5) . The very substantial economic benefits 1982 ...... 608.0 604.4 3.6 then spends, America's earnings. H.R. shown in Table I would be achieved at a rel­ 1983·...... 665.3 646.7 18.6 1000 provides that stt1lcture. - atively small cost 1n terms o1 foregone Fed­ I limit does no! apply in 1979. EFFECTS OF. H.R. 1000 Ol'f THE EcONOMY AND -eral tax revenues. After allowing for the ON FEDERAL TAX REVENUES feedback effect from expanded economic ac­ ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OF H.R. ·Enactment of H.R. 1000, the American tivity, Federal tax receipts would be about 1000: TITLE I-REDUCTIONS IN INDIVIDUAL INCOME TAX Tax Reduction Act of 1979, would provide a $9 btllion less than under present law in RATES_ powerful expansionary thrust for ·the U.S. 1979; this loas would increase to $38 blllion [Dollar amounts ia constant1977 dollars] economy. The phased-in 25 percent across­ in 1983 and decline gradually to about $34 the-board individual rate cuts, the reduction billion in 1988. In the latter year, the reve­ Increase or decrease (-) in 1979 1981 1983 1988 ·in the top rate of tax on capital gains to-15 nue cost per added full-time equivalent job percent, and the indexing of individuals. Em~oyment (thousands of. fuU- would be only $6,115, measured in 1977 dol­ ·me equivalent employees) ...... 640 2,260 3,450 4,040 corporate, capital gains. and estate and gift lars. Annual wage rate ...... $110 $410 $780 $940 taxes for inflation would substantially Gross national product (biUions): reduce the existing and growing tax barriers All of these results assume a 6 percent Total ...... : ..... 31 120 216 282 to work, saving, and capital formation. As a annual inflation rate in 1979 and beyond. If Business sector ...... 25 99 176 231 the monetary authorities were to restrict Gross · ate domestic investment resUlt, the economy would experience accel­ (biCs) ...... 45 102 1,50 68 erated growth in productive capacity, em­ the growth in monetary aggregates to the Qmsumption (billions) ...... (14) 18 66 214 ployment and total output. These gains are amounts projected under present law, the Federal tax revenues (billions): atrong gainl in employment, capital forma­ Net of feedback ...... (8J (24l summarized in Table I. Initial impact ...... (13 (40 mJ As estimated by use of the Analysis of Tax tion, and real output imply a substantial re­ !m Impacts Model, developed by Norman B. duction in the inflation rate. Notes: The figtKes are ltle differences between the estimated amount of the Ture, Inc., there would be 790,000 more full· H.R. 1000 includes a provision-Title IV­ respective economic magnitudes under the tax change and under present law in each year. Amounts shown in parentheses are deer~ from present law in time equivalent jobs in 1979, if H.R. 1000 limtting Federal expenditures to the lower that year, not from the preceding year under the tax change. Estimates of had been effective as of the beginning of of <1> ·specific, decreasing percentages of employment effects are rounded to the nearest 10,000; estimates of annual the year. By 1988, there would be 5,900,000 wa~e effects are rounded to tile nearest $10; estimates of effects on GNP, GNP or <2> an amount which exceeds that cap1tal outlays, consumption, and Federal revenues are rounded to the nearest more f~time equivalent jobs than the pro­ of the prior ftscal year by no more than 'l $1 billion. jected employment levels under present law. percent. The projected budget results, al­ By far the overwhelming proportion of lowing for the expansionary effects of the ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OF H.R. these jobs would be in the private sector. tax provisions of H.R. 1000 on total income 1000; TITLE II-REPEAL OF ALTERNATIVE MINIMUM TAX Substantial increases in average real wage Btlld employment, hence the feedback ef­ AND IMPOSITION OF 15 PERCENT ALTERNATIVE TAX ON rates above projected present-law trend fects on tax revenues, are shown in Table 11. CAPITAl GAINS levels are projected as a major result of the As the Table shows, the Federal budget tax changes in H.R. 1000. Measured in dol· [Dollar amounts in constant 1977 donars] lars of-constant 1977 purchasing pi>wer, the would achieve a slight surplus in fiscal 1982; average real wage rate would be $200 more the surplus is projected to grow strongly Increase or decrease ( - ) in 1979 1981 1983 1988- than the trend level in 1979, and this gain beyond that year, suggesting the possibility tax ~oyment (thousands ri full. would rise to $1,890 for 1988. of additional, significant reductions. me equivalent employees) ...... 60 200 360 520 These real wage rate gains, reflecting sig­ The Title IV expenditure limit, in effect, Annual wage rate ...... $40 $130 $240 $350 permits Feder&l spending to increase by 7 Gross national product (billions): nificant advances in productivity above pro­ Total ...... - •• 23 45 71 jected present-law levels, would be associat­ percent a year, measured in current dollars. Business sector ...... 17 34 54 ed with large increases in private capital The higher the inflation rate, the smaller Gr(bil!:::~.~.~~-·~-~ .. 15 26 43 31 formation. H.R. 1000's tax changes would would be the gain in government spending Consumption (billions) ...... (9) (3) 2 40 significantly reduce the existlrig tax bias in real terms. The greater the desire by Federal tax revenues (biiHons): Net of feedback ...... 1 2 7 against private saving and Investment. -In those in the government to ·increase real OJ constant 1g77 dollars, gross private domestic spending by .the Federal government, the Initial impact ...... (1 (1) (1) (2) investment would be $80 billion more than greater would be their incentive to curb in­ Notes: The figures are the differences between the estimated amount of the the 1979 trend level, and this gain would ad­ flation. Title IV, therefore, exerts pressure respective economic magnitudes under the tax clllnge and under present law in vance to a peak of $295 billion in 1983. Even each year. Amounts shown in pareatheses are decreases from present law il for avoiding inflationary monetary policies that year, not from the preceding year under the tax change. Estimates of after this strong surge, investment would and for careful and prudent allocation of employment effects art rounded to the nearest 10,000; estimates of annual remain substantially above present-law pro­ limited government spending authority. wa~e effects are rounded to the nearest $10; estimates of effects on GNP, jected levels; in 1988, capital outlays would fiP'~:.tlays, consumption, alld Federal revenues are rounded to the nearest be $179 billion greater than under present law. TABLE I-ECONOMIC AND FEDERAL TAX REVENUE EFFECTS ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OF H.R. With the enlarged stock of real productive OF H.R. 1000; TITLES I THROUGH Ill, COMBINED; 6 1000; TITLE Ill-INDEXING INDIVIDUAL INCOME TAX RATES capital In the· private sector and the resultr ing increase in labor's productivity, businesS PERCENT ANNUAl INFLATION fOR INFLATION demand for labor services would expand sig­ [Dollar amotlllt$ ill constant 1977 dollars] [DoHar amounts in constant 1977 dollars] 'niftcantly above projected ·present-law levels. And the significantly reduced individ· lncl'ease or decrease . (-) in 1979 1981 1983 1988 Increase or decrease (-) iR 1979 1981 1983 1988 ual income tax rates would result in a sub­ stantial increase above trend projections in Em~ent (thousands of full- Employment (thousands of ful. · eQuivalent employees) ...... 790 2,770 4,438 5,900 time equivalent einployees) ...... 100 350 740 1,520 the supply of labor services. The result $220. Annual wage rate ...... $200 $740 $1,390 $1.890 Annual wage rate ...... $60 $440 $690 would be the substantial gains in employ­ Grosa national product (biRions) : ment and real wage rates already noted. Gross national product (billions): Total ...... 11 42 89 165 Total ...... 48 183 344 513 Business sector ...... 8 '30 64 123 Consumption outlays, in constant 1977 Business sector ...... 38 145 268 401 dollars~ would initially fall somewhat below crorbilr:::~.~~~~-.~~~.~~.~~. : 23 43 80 63 present-law levels as taxpayers sought to in­ Grftl:t~~.. ~ .. 80 172 295 179 Consumption (billions) ...... (12) (1) 9 102 Consumption (billions) .. ~ ...... (32) 11 49 334 Federal tax revenues (billions): crease their saving and investment in re­ Federal tax revenues (billioAs): Net of feedback ...... 6 12 sponse to the greater after-tax returns to Net of feedback :...... (9) (25) (38) (34) Initial impact ...... (1) (9) saving which H.R. 1000 would afford. As Initial impact"...... (12) (41) (62) (87) total output advanced, however, real con­ -tess than $0.5 billion. sumption would rise more and more above Notes: The figures are 1lle clfferences between the estimated amount of the respective economic magnitudes undef the tax change and under present law in projected levels under present law. By 1988, each year. Amounts shown in parentheses are decleases from present law in the gain in real consumption would ~ $334 that year, not from the preceding year under the tax change. Estimates of billion. employment effects are niunded fo the nearest 10,000; estimates of annual wa~e effects are rounded to the nearest $10; estimates of effects on GNP. These advances in gross private domestic ~~:,tlays, consumption. and Federal revenues are rounded to the nearest investment and in consumption outlays 5800 EXTENSIONS OF REMARKS March 18, 1980 ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OF H.R. pleased to call to the attention of my. Sarge worked for the State Department 1000; TITLE Ill-INDEXING CORPORATE INCOME TAX RATES: colleagues the fact that Mr. Roger through America's golden age of amateur · FOR INFLATION Roberson, executive vice president of boxing, spreading American boxing tech­ the Pre-Fab Transit Co., Farmer City, niques and good will. Sarge had returned re­ [Dollar amounts_in constant 1977 donars] cently from his last trip in Africa where he Ill., was recently elected president spent several weeks working with Africa's Increase or decrease ( - ) in 1979 1981 1983 1988 of the Common Carrier Conference­ amateur boxing federations. Irregular Route. E,loyment (thousands of tuB- Sarge spread his cultural instructional ime equivalent employees) ...... 20 60 120 180 The conference, an affiliate of the boxing programs throughout the Far East, Annual wage rate ...... :...... $10 $40 $80 $120 American Trucking Associations, rep­ including Indonesia. where he trained Gross national product (billions): boxers there for the Asian Games. Total ...... 7 15 25 resents more than 600 trucking compa­ Business sector ...... 5 11 18 nies throughout the country. "I have.been: the goodwill ambassador for Mr. Roberson, who lives with his the State Department," Sarge would relate Gr~~w::~~ . ~~.. ~~~~~~~~ .. 5 I 15 u wife Ramona and their five children in with unbridled pride. "I've always tried to Consumption (biiUonst ...... (3) (1) 0 14 spread good will through boxing and I never Federal tax revenues (billions) : Seymour, Dl., brings to the presidency Net of feedback ...... :. ·o 0 3 a broad background of knowledge and wanted to let politics interfere with boxing. Initial impact ...... "We have accomplished a great deal of experience in the ·trucking industry, good with our boxing programs all over the • Less than $0.5 billion. including 16 years with Pre-Fab. world," Sarge would say, almost bellowing Notes: The figures are the differences between the estimated am6unt of ·the He is a ;community leader, giving because of his pride as an amateur goodwill respective economic magnitudes under the tax change and under present law in each year. Amoonts shown in parentheses are decreases from present law in generously of his time and talents to ambassador among the Third World coun- that year, not from the preceding year under the tax change. Estimates of promote many worthwhile civic and tries. · employment effects are rounded to the nearest 10.000; estimates of annual wage effects are rounded lo the nearest $10; estimates of effects on GNP, community endeavors. Only last August Sarge was honored for capttal outlays, consumption, and Federal revenues are rounded to the nearest The cohference has chosen wen; and his international boxing efforts by the In­ l1 billion. ternational . Communication Agency in I am pleased that his abilities and ac­ Washington, D.C., when one of his most ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OF H.R. -complishments have. been recognized prideful moments came when he met Presi­ 1000; TITLE Ill-INDEXING CAPITAL GAINS FOR INFLATION by his peers in the trucking industry·• dent Carter. [Dollar amounts ill constant 1977 doll3rs] Among Sarge's greatest amateur boxing achievement was his widely-lauded acclaim Increase or decrease ( - ) in 1979 1981 1983 1988 "SARGE" JOHNSON-A MOULDER as the top assistant to Pat Nappi~ coach of OF MEN the great U.S. gold-medal winning Olympic Emgloyment (thousands of full. team in Montreal. · ·me equivalent emplo)tees) .... _, 70 250 490 no Annual wage rate ...... _ $40 $160 $320 ~520 HON. DAN QUAYLE "Sarge's influence with the U.S: boxers," Gross national product (billions): related one n~tional boxing authority, "was Total ...... ;...... ,. 8 29 61 107 OP INDIANA great. He had such rapport with the U.S. Business sector •• - ...... 6 22 46 81 IN THE HOUSE OJ' REPRESENTATIVES boxers... Gross ivate doinestic investment (bil~s) ...... 18 34 61 52 Tuesday, March 18, 1980 Sarge would have been one of two or three Consumption (billions) ...... (10) (5) 0 55 top coaches considered for this year's Olym­ Federal tax revenues (billions): • Mr. QUAYLE. Mr. Speaker, the pic·boxing team. Net .of feecllacll ...... 0 1 3 8 tragic crash of a Polish airliner last IAitlal impact ...... (1) He also coached the U.S. Pan Am team • (1) (4) Friday near Warsaw brought death to and, only recently, was in the corner when ·Less 111M $0.5 bilion. 87 persons including 23 members of U.S. boxers fought Cuba's elite in New · Noles: The figures are the differences r.etween the estima1ed amount of the the U.S. amateur boxing team. At York.. respective ICOI10illic magnitudes under ·llle tax cllange and under present law ill least 14 young boxers, many ·with Sarge wrote a widely-circulated manual on each ~ . Mlooots shown in parentheses are decreases from present laW in that year, not from tile precedil!a ~ lllldlr VIe tax c:llange. Estimates of promising careers ahead, were lost. boxing techniques for several countries. employment effects are niunded il 1118 nearest 10,000; estimates of annual Those of us from Indiana were espe­ "Where we're hurting," Sarge once said, . wage effects are rounded lo the nearest $10; estimates of effects 011 GNP "is that there are not enough coaches to ~~U:.tlays, aJIISUIIIpliol, and Federal IMIIUeS are NUIIded 1o VIe nearest cially saddened over· the loss of teach. What's hurt the growth ·is the poorly Thomas "Sarge" Johnson, coach of trained coaches and insufficient competi­ ECONOMIC AND FEDERAL TAX REVENUE EFFECTS OFH.R. the team who made his home in In­ tion... 1000; TITLE Ill-INDEXING ESTATE AND GIFT TAXES FOR dianapolis. S~ge Johnson was a Sarge also developed Norm Goins, whore­ INFLATION moulder of young men and he dedi­ tired after a good · pro career as a cated his life to developing amateur lightweight, and assisted trainer Champ [Dollar amounts in COIIItant 1977 doHars] talent for the ring. His loss will be felt Chaney on occasion with the development of Marvin Johnson, only fighter to win the Increase or clecrNse (-) ill 1979 1981 1983 1988 not only in Indiana but around the world. Sarge carried his dedication to World Boxing Association and the World Em~ment (thousands of full- young people of many lands. He was Boxing Council light-heavyweight crowns. ·me equivalent employees) ...... 10 40 70 100 Sarge was born in Louisiana, Joined the Annual wage rate ...... ;...... $10 $20 $50 $70 indeed known ·as ~erica's greatest Army at age 17 and fought 30 amateur Gross natiooal product (billions) : international amateur boxing ambas­ bOuts. · Total ...... - ...... 8 12 sador. Business sector ...... ,..... - .... 7 11 World War II interrupted his career but We mourn the loss of Sarge JohnSon he returned in 1945 to begin his great career Gr~~r::~.~~- -~~~~-~~-- 3 & 11 and the U.S. team members who died CQnsumptiOR (biHions) .:...... (2) (2) (3) as America's greatest. amatem- international Federal tax revenues (biUions) : .last week. Our heartfelt sympathy· is boxing ambassador. Net_ off~ ...... - ...... (1) (1) (2) (4) extended to Sarge's wife, Emily; his Sarge is survived by his widow, Emlly; two Initial impact ..... -...... -.... - . (1) (2) (4) spns, Alphonso and Thomas Jr.; and sons, Alphonso and Thomas Jr. and a his daughter, Betty. daughter, Betty. •Less t11an so.s·billion . The Indianapolis AAU Headquarters was Notes: The figures are the cDflerences between the estimated amount of the Under leave. to extend my remarks respective economiC magnitudes under the tax change and under present law in in the RECORD, I include· an article by swamped today by callers wanting informa­ each .)UI' . Amounts shown in parentheses are deci'ease$ from present law in tion on the crash. But officials there had no that year, . not from the preceding year under the tax cllange. Estimates of Jimmie Angelopolous of the Indian­ information and referred all questions to employment effects are roundecl" to the nearest 10,000; estimates of annual apolis News which highlights appro­ other sources.e - wa~e effects are rounded lo the nearest $10: estimates of effects on GNP, priately Sarge Johnson's commitment $1P1~:.r· consumption, and Ftderal reveaues are rounded lo the nearest to youth and to boxing: SARGE BOXING .AMBASSADOR UNCERTAINTY ABOUT FED'S ILLINOIS BUSINESSMAN ELECT­ Thomas "Sarge.. Johnson of Indianapolis ED HEAD OF TRUCKING AsSO­ would have been 59 years old March 26 but MONETARY .POLICIES CIATION his tragic death in the plane crash in Poland today was mourned today b_y members of HON. DON RITIER the world-wide amateur boxing community. HON. EDWARD R. MADIGAN OF PENNSYLVANIA Sarge was regarded as America's.. greatest OF ~LLINOIS international amateur boxing amba.Ssador. IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OJ' REPRESENTATIVES From America's shores to Tripoli to Asia, Tuesday, March 18, 1980 and even recently in Pakistan, Sarge John· Tuesday, March 18~ 1980 son was well known in international · ama­ • Mr. RITI'ER. Mr~ Speaker, I know e Mr. MADIGAN. Mr~ Speaker, I am teur boxing circ.les. my colleagues share with me the tre- March 18, 1980 EXTENSIONS OF REMARKS 5801 · mendous uncertainty building within who are concerned that the cuts to be The travel and consulting budgets should · the American public as a result of the proposed by the administration in its be reduced by $1 billion, as recommended by Fed's recent and continued monetary attempt to balance the budget will re­ Democratic ·sens. James Sasser of Tennes­ policies. After meeting with a large ceive inadequate legislative attention. see and David Pryor of Arkansas, and public group of my constituents, representing affairs could be cut by one-quarter, saving Fortunately, however, Senator WIL· $250 million. Does the Pentagon really need some of the industries most greatly af­ LIAM PROXMIRE has provided US With a 1,500 public affairs Specialist$? Does HEW .fected-small businesses in particu­ benchmark against which the adminis­ need more than 400? Come on. lar-in an inflationary climate, I am tration's proposals can,be judged~ Our waterways, highways and airports .ob- again compelled to urge Fed Chairman The article, from the March 16, · viously are essential to interstate commerce, Volcker to carefully consider the 1980, yvashingtol?- Post, follows: but why shouldn't the users pay a realistic impact from the Fed actions on the price? By insisting that user fees reflect state of our economy. THE DEEPER PROXMIRE BUDGET Ax true costs, airport and waterways revenues I share my letter to Chairman could displace $2 billion in federal spending Volcker with you: The "not me" game is going full steam next year. In addition, CQngress should since Washington suddenly discovered that lower the ~ghway trust fund by at least$~ CONGRESS OF THE UNITED STATEs, we have to slash the federal budget, and it 1 billion,.llelping to conserve not only money HOUSE OP REPRESENTATIVES, has started to result in .the usual nonsense. but energy as well. Washington, D.C., March 12, 1989. · · . How many Americans would vote for a Mr. PAUL A. VoLCKER, . You know how it goes. The best way to program with no sound economic justifica- Chairman, Board of Governors of the Feder­ force efficiency on HEW is to give it few.er tion, one that provides a huge subsidy to a al Reserve System, ·washington, D.C. funds, while the best way to do the same for very few individualS, contradicts national the Pentagon is to give it more money. agricultural policy and aggravates flood DEAR MR. CHAIRMAN: I am writing to you Or: If you reduce spending for ? . as a result of a meeting I held today with my program now, "it will only cost more in problems. Many of our water resource proJ- some fifty homebuilders, realtors and bank­ the long run." Or simply: You can't ects, dams, waterways, canals and reclama- ers from the Lehigh Valley area of Pennysl­ take lt out on my group. ; moth­ brary of Congress and the GAO. Glendale Judicial District is consid­ ball obsolete World War II Naval Reserve Wherever possible, committee staffs ered by the auditors of Los Angeles destroyers <$130 million>; improve the offi· should be cut. ·I have returned $350,000 to County ·to be the best and niost effi­ cer-enlisted men ratio <$20 million>; cancel the Treasury over the past three years from In the manned penetrating bomber studies my personal staff and office budget, and my cient court the vast county system. <$50 million>; delay the Advanced Attack Banking Committee staff has been Feduced It is the only court ·in the system Helicopter and SURTASS <$420 million>; re­ 6 percent since last year. We get along fine, where you can file a civil action and scind procurement of the CVN71 nuclear Just as other staffs could. Ev.ery congres­ get a trial date within 2 weeks. In most aircraft carrier from last year <$60 million. sional office should take a 10 percent cut in districts. th~ delays range from 2_ ·with greater savings in succeedfug years), office expenditures this year. months to 2 years or more. March 18, 1980 EXTENSIONS OF REMARKS 5803 . In the Glendale court, criminal cases "revisions" to the spending estimates it of­ the past for "the little guy" to clear are being heard within statutory time fered back in January. The March figures the hurdle to small business success, it limits whep the participants are pre­ are the January figures, plus revisions, is still possible. It is a pleasure when minus "cuts." pared. ,Aga:in this· is a most unusual The sharp pencils were out along Wall we can recognize the hard work and and welcome situation. Street yesterday, and Morgan Stanley's H. perseverance of individuals who have Credit for this laudable efficiency is Erich Heinemann discovered that once you led a small business to its 100th anni­ due in great measure to Aiden Bes­ offset the revisions and the cuts and aggre· versary. vold, an employee of the court for the gate the two fiscal years, the effect on ex­ The Sligh family, and the furniture past 32 years. In 1970, he became head penditures of the new crisis budget is: pre­ business which they founded and op­ and chief clerk of the court. cisely zero. erate, and which is now located in Hol· In this capacity, his steady guidance, In one of Its tables, the White House is land, Mich., in the Ninth Congression­ perfectly honest about this. If you take the his managerial astuteness, his ability mid-points of the ranges in the table, and al District, is just such a success story. to hire·capable people and then prop­ add the totals for the two fiscal years, it The past 100 years, the wars, depres­ erly train them, helped immeasurably looks like this: sions, and recessions, have been chal· 1n creating a court mechanism which lenges met and overcome by a family administers sure and timely justice. OUTLAYS dedicated to the principle that the As a man arid as an administrator, [In billions) American people will always be in the he has always been admired. Despite market for a fine product skillfully the responsibilities and demands of his Fiscal Fiscal Total made. I am proud to be able to join position, he always took the time to be year 1980 year 1981 with all the citizens of Michigan's Ninth Congressional District, the courteous and concerned with everyone $564 $616.0 $1 ,180 associated with the court. ~~a:lvi;;oo;·:::~:::::::::::::::::::::::::::::::: & 9.5 ...... family of the city of Holland, and the Minus cuts ...... 2 13.5 ...... Sligh family in marking a centenary When Alden Besvold walks out of . March ...... 568 612.0 1,180 the courthouse for the last time on that heralds the qualities on which March 28, there will be no bands play­ our country and its free enterprise ·ing but this in no way diminishes his While we were naive in not spotting Mr. economy were founded. I recommend Carter's budget cuts as an even bigger fraud the story of this success, from the Hol­ accomplishments as a public servant; than we suspected, we were right in ldenti· this in no way diminishes our grati­ fying his program as a tax increase. Even land Sentinel newspaper, to my col­ tude for the benefits that have conie here, however, we underestimated. The ;rev­ leagues: to us because of his extraordinary enue table looks like this: FAMILY-OWNED FuRNITURE COMPANY TuRNs career. 100 TODAY . We are thankful for this opportuni­ REVENUES ty to pay tribute to him upon his re_. [In biHions] A company reaching the age of 100 is as tirement.e admirable an accomplishment as it is rare. Fiscal ftscal Total But a family-owned furniture company year 1980 year 1981 reaching the century mark is unique, espe­ ILLUSORY BUDGET CUTS cially in these days of tight money, corpo­ $524 $600.0 $1,124.0 ~~~ar~visions·:: :: : : : : ::::: : ::::::: :: :::::::::~ 5 11.5 ...... rate absorption and the shift of furniture New withholding ...... 0 3.0 ...... manufacturers from Michigan to North HON. BARBER B. CONABLE, JR. 3 10.0 ...... Carolina. . OF NEW YORK ~~j~~.~~: :::::::::::::::::: : ::=~:::: 532 624.5 1,156.5 Sligh Furniture Co., a familiar Holland IN THE HOUSE. OP REPRESENTATIVES landmark located between 11th and 12th Streets on Columbia Avenue, is celebrating Tues·day, March 18, 1980 In the. seven weeks between the two budg­ ets, the government's tax take went up $32.5 its centennial today. e Mr. CONABLE. Mr. Speaker, in the billion over the two years. The increase in At the helm of this company as It starts euphoria of budget cutting which tax revenues from one fiscal year to the on its second century are men who carry the seems to be engulfing -the administra­ next soared to $92 billlon from the $76 bil­ name of its founder-Sligh. tion and ·congress, I am compelled to lion already predicted in J~uary. With the . And that name is not only familiar in raise the c·aution that not all proposals large tax boosts already proposed In Janu­ West Michigan, but the world as well. ary, Mr. Heihemann calculates · that you "We are unique in our industry," said are as meets the eye. We all are aware have the biggest peace-time tax boost in his· Robert Sligh, 51, president of Sligh Furni­ that budgets are susceptible to ·num­ tory; taxes will rise from 20.5 percent of ture and grandson of the founder, Charles bers juggling and this President ape; GNP in calendar 1980 to 21.9 percent in cal· Sligh. "We're 100 years old and managed by pears to know the practice very well. endar 1981. the same family. That combination makes An analysis in today's. Wall Street Thanks to these gigantic tax increases, us unique-and we're proud of it." . Journal points out that for all of the you can say the budget is in balance, pro­ Reading Sligh Furniture's history is. President's recent claims of balancing vided <1> you ignore the government's off. almost a study in the furniture Industry' the budget by cutting spending, he is budget credit activities, see below, and <2> itself. Throughout the years, the company you can persuade yourself there won't be has branched out Into different ventures really relying on rising· taxes to any more spending revisions like the ones in under the leadership of the Slighs. achieve that goal. Switching spending the last seven weeks.e The company's main products today are between 1980 and 1981 fiscal years will medium to high priced home, home office leave total spending in the 2 years un­ and office desks and "executive suites." diminished, but rising taxes will in-· SLIGH· FAMILY SHOWS FREE Floor and mantle clocks, which account for crease the revenues by another $16 bil­ ENTERPRISE DOES WORK roughly half of the company's productivity, lion, to a total mcrea.se of $92 billion. I have been manufactured by Sligh since it purchased Trend Clocks of Zeeland in 1968. submit the- analysis for examination HON. GUY VANDER JAGT At one point in Sligh's history, the compa­ by my colleagues who may want to OF MICHIGAN ny was the largest manufacturer of bed­ consider some real budget cutting to IN THE HOUSE OF REPRESENTATIVES room furniture in Grand Rapids, in the days gain control of our runaway inflation. when that city was the pinnacle of furniture ONE-DAY BUDGET CUTs Tuesday, March 18, 1980 manufacturing. We were wrong to suggest . in these col­ e Mr. VANDER JAGT. Mr. Speaker, BEGINNINGS umns yesterday that the Carter-administra­ individual initiative, perseverance, Cha~les R. Sligh began in the furniture in­ tion would take back its budget cuts after hard work_,.qualities that America and dustry in 1874 as a finisher with Berkey and the November election. It has taken them Americans prize-have made our free Gay Co., th.en the largest manufacturer of back already. enterprise economy the source of un­ furniture in Grand Rapids. He later became We pride ourselves in a healthy measure limited opportunity. a traveling salesman primarily in the south· of skepticism, but we were taken in by the west, often traveling by stagecoach through administration's propaganda barrage about Frequently today we hear that the· Texas. cuts of $2 billion this fiscal year and $13 bil· small businessman cannot make it. . This training somehow convinced him to lion in the year starting on October 1. We While it is without doubt true that start up his own business, as the fledgling failed to notice that .in releasin·g its new massive government interference Grand Rapids industry was beginning to spending totals the White House also made makes it much more difficult than in become known for its well-made furniture. 5804 EXTENSIONS OF REMARKS March 18, 1980 By early 1880, Sligh had solicited enough pally Sligh's half-sisters and their hus­ in the case goods business until 1957 when money from friends and associates to start bands-decided to liquidate Sligh's assets. It the Grand Rapids Chair Co. was sold to his own business in Grand Rapids. By Feb. was in the midst of the Great Depression, Baker Furniture Co. 27, 1880, 'Sligh Furniture Co. of Grand money was tight. Contract furniture was offered, and Sligh Rapids was born, manufacturing a variety The Sligh Furniture Co. building in became a familiar sight in college dormi­ of furniture. Grand Rapids was closed after liquidation, tories, at Michigan State University, Hope ' Six · other furniture companies were and some historians have said this marked College, Alma, Aquinas, Central Michigan formed in Grand Rapids that same year, but the end of the ·era of mass production of Uni"ersity and the University of Michigan, by 1913, only Sligh remained. case goods furniture in Orand Rapids. to name a few. Hotels, motels and nursing Property on Buchanan Street in Grand Other large manufacturers also closed their homes also picked up the Sligh lines until Rapids was purchased for a 15,000-square­ Grand Rapids plants. the company ceased making contract furni­ foot factory two weeks atter the company But it was not the end of Sligh Furniture. ture. was incorporated. That building still stands, Olf TO ROLLAND During these prosperous years, Sligh Jr. and the name of Sligh can vaguely be made Charles R. Sligh, Jr:, 26 years old at the was active in furniture manufacturing orga­ out. time, like his father, was not about to see nizations, like his father. He was elected First year profit for Sligh was $4,500. the end. He decided the company could con­ president of the National Association of These '.'meager" beginnings slowly evolved tinue manufacturing, but on a smaller scale. Manufacturers in 1948, after years of serv- Sligh into one of the three largest manufac­ The next year, the younger Sligh acquired ing with other organizations. ' turers of furniture in"Grand Rapids by 1925, some of the assets of the former company, In 1952, Sligh served as executive vice· the company's banner year in its early days. took on Q. W. Lowry as a partner and a pro­ president and chief administ;rative officer of Sligh FUrniture's early ·years also saw duction man , and started the Charles R. Sligh Co. and served . in that position for five years, ny. Bicycles were manufactured from 1895- This time, the move was to Holland where rubbing elbows with labor leaders and politi· 1897, particularly after the company bought the two men bought the old Thompson cians in debates on national television. the Hamilton Bicycle Co. of Hamilton, Ohio Manufacturing Co. factory, reportedly for a While Sligh was in New York, 0. W. in 1896. · "modest sum" because of the depth of the Lowry became president of Sligh Furniture But peddling bicycles, although adventur­ Depression. in 1957. ous; didn't prove to be the most financially By October 1933, production started and Changes came to Sligh Furniture in the successful Sligh venture. Net losses a year 45 employees were working in the plant, five 1960s as well. The Sligh desk line remained after Sligh bought the bike firm almost more than when Sligh Furniture Co. started strong. Trend Clocks of Zeeland was bought crushed the furniture company. Bicycle pro­ 53 years before. in 1968. A reorganization that same year duction folded, and it took some work tQ get Thanks to a good contract with the R. H. when the company bought the stock of 0. the company back on its feet. Macy Co. of New York-a client · o~ the W. Lowry brought back from 1933 the old Robert Sligh reflectS on· what he learned former company~ligh was able to begin name of Sligh Furniture Co. of the experience: "My grandfather's part­ gettmg back on its feet. · The reorganization meant Sligh was com­ ner absconded with the bicycle funds," he The turning point in the manufacturing pletely in the hands of Charles Sligh Jr., explained. "Many people today would have history of the newly formed company prob­ and stock eventually filtered into the hands declared bankruptcy. But my grandfather ably came with the introduction of the _of more members of the Sligh family. went to his creditors and told them he "knee-hole desk" in those early years f-ol­ 100 YEARS LATER would pay them every penny. That deal Just lowing its re-birth. Today the company is still family-owned, about put the company under. But he Originally started as a product to keep brought it back." with no outside stockholders. cash flow going, ·the desk turned into some­ The grandsons of . the company's There were other early ventures by the thing bigger than the company probably company's founder. The Honduras Mahog­ founder-Charles III, Richard and Robert­ had anticipated. are active in the firm today, as is Charles any Co. was formed in 1895 and later dis­ In the beginning, the desk ·did not carry solved. The Charles Sligh Timber Co. was Sligh Jr., who is chairman of the board. the Sligh name, but rather was· manufac­ Sligh Furniture's main product line Is formed tit 1903, · investing in timber in the tured under the name of the former owner Northwest. desks, but bookcas~ and other office ap. of the plant-Thompson. pointments to complement the line are also · . manufacturing. The company maintains showrooms in Investments were wide, including timber Holland Industries then got priority such Cities as San · Francisco, Minneapolis, companies, a canal in Arizona, and land lumber supplies, but to supplement this, Sligh bought timber acreage northeast of Chicago, Dallas, Los Angeles and High deals and a piece of the Pantlind Hotel. · Holland.- Point, N.C. . . . World War I pr-oved lucrative in a ·way to Furniture is still made by craftsmen using the company, when it Manufactured walnut modem machinery which doesn't look much gun stocks for the federal government. AFTER THE WAR different from days gone by. A walk Charles Sligh Sr. died of pneumonia in PrQsperity again became the watchword through the plant shows the workers still 1927. Ironically, a depression in the furni-· of the Sligh company following the war. fussing over detail, gold, inlay or fine fin­ ture .industry which began the year before, Grand Rapids saw the Sligh name once ishes. was sweeping away many furniture compa­ more when ·the Grand Rapids Chair Co. was The desks and clocks-hand finished and nies. Grand Rapids was dying as the furni­ bought, and case· goods were again added to hand painted-are not inexpensive. A clock ture capital as the indtistry moved south. the Sligh line. . · offered by Sligh to commemorate its 100th Sligh Furniture's losses continued to Suites were again offered, different kinds birthday is carry­ mount· and orders kept dropping, so that by· of furniture was made, including tables and ing a retail price tag of about $5,400 for the 1932, the company's stockho1ders-pl'inci- chairs, dressers and bed frames. Sligh stayed limited edition .piece. March 18, 1980 EXTENSIONS OF REMARKS 5805 "It's representative of just about the defense look like the increase Carter ment of the current state of the Fed­ finest we can make," said Sligh. "The ve­ has pledged. Through cost accounting eral role in the Nation and the budget neers, mahogany and inlays are all well· the extra fuel bill for the battle that funds that role. We must reView made." groups in the Indian Ocean and for the use of outside consultants that With money so tight these days, how bm a company go on making expensive items? the overall increase in fuel prices will mask employee ceilings. We must look Does the consumer still want expensive fur· be put off so it can be included in the at the end of the budget year buying nishings? fiscal year 1981 budget. This will add sprees agencies embark on to wider­ "Yes, more than ever," said Sligh. "Our many billions to the fiscal 1981 de· score their demands for more funds business right now is stronger than ever. fense budget, when it should really be the next year. We must end budget Last month was a record January for us, accounted for in fiscal year 1980. creep through- the laundering of cur­ and this is a record February as far u Another trick that is being used to rent services figures. We must not orders go. mask reality in the fiscal year 1981 allow ourselveS to be taken in by "I think people are watching their money. They're not going to spend it on something budget has been to fall back to the .3 imaginative accounting measures de­ obsolete, out of style, or which will wear out percen,t a year increase in defense signed to mold budgetary outrages in five years. They want something they can agreed to by our NATO allies and to into sellable form. Most of all we must pass on to their children, an investment. al­ abandon the 5.4 percent touted by the all commit ·ourselves to serving this though they may pay a little more now. Pentagon to win votes for SALT II. It Nation by instituting the kind of over­ That's why the manufacturers of quality is possible that even the 3-percent in­ sight and the kind of courage that will furniture are so busy." crease may be energy related. This will be necessary to cut the budget back to The Sligh family made the decision to leave the United States even further some sane limits and balance it with stay in Holland at a time when many of -the nonburdensomerevenuelevels. manufacturers were moving south to more behind in its abllity to maintain an ef· timber and. cheaper labor. The decision of fective deterrent in the world. The voters demanded the Congress the Sligh family remains intact today. In domestic programs the budget is act on these matters in the elections "Primarily, we made the decision to stay also being laundered. There are al­ of 1978. They will be demanding some here because we like the area," said Sligh. ready indications that the Department substantive results in the elections of "And this part of Michigan still is respected of Agriculture has gone ahead in ex­ 1980. America has awakened to its for its fine furniture." panding eligibility for food stamps de· plight and it knows that the Federal With all three of Charles Sligh's grand­ spite the fact that they do not have budget is the cornerstone of its pres­ sons involved with the family firm, will this the funds to sustain the expanded ent economic decline. We have a mean the great-grandchildren will be as well? food stamp rolls through this calendar choice and a great opportunity. Let u8 · "It's really too early to determine if any year. The result will be a food stamp. not let it pass.e · of them will come into the business.'' said bill coming to the floor of this House Sligh. with all sorts of rhetoric about how But if his feelings about the business the poor and the aged will starve if we IN THE HIGHEST TRADITIONS transmit to his children and nieces and do not pass a new funding bill. In re­ OF THE U.S. NAVAL SERVICE nephews, they just may continue the tradi­ ality the USDA will have lumped in tion. the new recipients with the older ones HON. PAUL N. McCLOSKEY, JR. "I gtiess I'm like all the employees here," so when they come before us they can or ·cALIFORNIA said Sligh. "You can actually see and feel the product from start to finish ... mold say: IN THE HOUSE OF REPRESENT~TIVES it . . . and you get a sense of pride selling it. · It will be too difficult and costly to oper- Tuesda"', Maf1ch 18, 1980 That's job satisfaction.• ate the two groups so why not spend the ad- ll: ditional money so no one goes hungry. e Mr. McCLOSKEY. Mr. Speaker, "In It is a good gimmick. Unfortunately the highest traditions of the U.S. MORE BUDGETARY FLIM· for the already overbbrdened taxpayer Naval Service." Those are proud FLAMMERY this method of ·busting the budget words. They well match the words, works every time. "We have met the enemy and h~ is HON. JOHN M. ASHBROOK The ultimate deception in the fiscal ours," used on Lake Erie by Oliver oF oHIO year 1981 budget· is going to be how Hazzard Perry, for whom this class of IN THE HOUSE OF REPRESENTATIVES programs Will expand beyond CUrrent · ship is named. levels of service-over inflationary in- "In the highest traditions of the Tuesda'V, March 18, 1980 crease-but will be presented to the U.S. Naval Service" are words often • Mr. ASHBROOK. Mr. Speaker, re- House as increases reflective of infla- used to mark the kind of. craftsman­ ality has finally caught up with the tion. The only inflation these pro- ship for which the Todd Shipyards are ~ budget manipulators at the White grams will reflect are the grandiose de.. famous. House. In yesterday's Washington signs of the social engineers and bu- . ·These words, "In th~ h.ighest tradi­ Post it was reported that because of reaucrats right here in Washington, tions of the U.S. Naval Service," the Carter administration's games- D.C. For fiscal year 1981 over $34.6 bil- appear also whenever the Navy Cross manship with budget figures ·we now lion in new spending above inflation is awarded. As often· as not, the Navy have only half of our frontline aircraft has been included. None of these dol- Cross is earned-only posthumously. It able to fly. Through holding procure- Iars have been mandated by this Con- represents the very highest standard ment of spare parts at constant levels, gress, but if we do not act against this of excellence an American marine or but increasing procurement of aircraft- money, extra bureaucrats, new execu- navyman can ever hope to attain. . Few we have run out of spare parts for the tive ·desks, extra trips, and bigger spe- hope to win the Navy Cross and sur­ top planes in our Air Force, causing cial interest grants will become part of vive. the grounding of 47 percent of both the overhead of Government. If these Thus, when an individual has e·arned the F-15 Eagle and. the F-14 Tomcat. funds get past us they will find instant five Navy Crosses, the only man in 205 The remaining planes are also in jeop- tenure as part of the .massive bundle years of the illustrious history of the ardy as cannibalization of combat- of money known as last year's expend:- Marine Corps to have done so, it is ready planes continues to take place to · iture. well that we of the U.S. Naval Service keep a dwindling number of aircraft Every year the budget- gets bigger pause a moment in respect and ·awe, airborne. and bigger. The burdens on tlie tax- and that we also soberly note the obli- This Chamber is indebted to my col- payers and on the capltal markets gation of all of us to see that these league from· Alabama, Mr. EDwARDs, have reached the point where the highest traditions· are ·carried on~ not who revealed these startling figures. entire system of incentives in this Just on this ship which bears his This comes at a time when there are Nation is on the verge of collapse. The name, but in the service each.of us can reports that elaborate accounting Congress must cast aside the rhetoric render to our Nation in a very perilous measures are taking place to stretch of Mr. Carter, and the games his staff and challenging time~ the fiscal year 1980 budget and to wants to play, in order to clear the It is a good time to restore the prin­ make the fiscal year 1981 budget _for way for a complete and .. open assess- ciple that service to the Nation is a C.XXVI--366-Part 5 5806 EXTENSIONS OF REMARKS March 18, 1980 privilege, not just -a duty, for the There is a young man today who administration's propaganda barrage about yourig man of America, and that in well understands the importance of cuts of $2 billion this fiscal year and $13 bil· lion in the year starting in October 1. We peacetime all young men may wen give these traditions and the legacy of his· failed ·to notice that in releasing its new a year or two of their lives in service, tory. He has carried on; his quiet cour­ spending totals the White House also made whether military or· humanitarian, if age furnishes as great an example to "revisions" to the spending estimates it of· only in gi'atitude for the freedoms living and future marines as does the fered back in January. The March figures which were earned and preserved by record of his father. If Chesty Puller are the January figures, plus revisions, those who have gone before. were here with us on this golden Cali­ minus "cuts." ' We know that the men who will fornia morning, I suspect he would The sharp pencils were out along Wall serve this ship, and if necessary, fight take this rostrum and say that his son Street yesterday, and Morgan Stanley's H. has given the greater service and made Erich Heinemann discovered that once you this ship, will try to serve and fight offset the revisions and the cuts and aggre­ with the same courage, coolness and the greater sacrifice. Chesty would not gate the two fiscal years, the effect on ex­ skill with which Chesty Puller served just ask, he would probably order that penditures of the new crisis budget is: pre­ and fought-in a hundred campaigns­ this ship be christened the Lewis B. cisely zero. in Haiti, in Nicaragus.~ at· Guadalcanal, Puller, Jr. In one of its tables, the White House Is Cape Gloucester, and Peleliu, at At Arlington, next to the monument perfectly honest about this. If you take the Inchon and Koto-Ri. at the grave of John F. Kennedy, mid-points of the ranges in the table, and there is a simple cross marking the add the ~tals for the two fiscal years, It Chesty Puller's name and record grave of hi& brother, Robert Kennedy. looks like this: have furnished inspiration to hun­ There may soon be alongside an even dreds of thousands of .marines, espe­ smaller marker for the grave of an OUTLAYS cially including those of us here today. equally great American, their friend, {In bitfions] All acknowledge that the Marine Allard Lowenstein, who was killed last · ------,------Corps, the U.S. Naval Service and evening. fa year .Total indeed the United States, depend for I would hope, Commander Martin, 1980 · 1981 our strength on that fierce desire most that wherever on this ship there is of us share to live up to the standards maintained the record of Lewis B. tua~·::::::::::::: : ::::::::~:: : : :: ::: :: :::::: .$56: $61~ : ~ ...... !~:~.~~ of excellence that Chesty Puller and Puller and his five Navy Crosses ·from others have set for us. Minus cuts'"""'"""""""'""'""'""'""'"------2 13.5 """"""'"' Nicaragua, Guadalcanal, Cape Glou­ March""""''';""'""'"""""'"""'"""'"" . 568 612.0 1,180 The record of Virginians In our Na­ cester and commanding the 1st Marine tion's military history is unique. ~egiment, Korea, there will be along­ George Washington at Valley Forge While we were naive in not .spotting Mr. side a small mention of Lt. Lewis B. Carter's budget cuts as an even bigger fraud and Trenton; Robert E. Lee at Freder­ Puller, Jr., Silver Star, Purple Heart, than we suspected, we were right in identi­ icksburg and Appomattox; Stonewall 1st Marine Regiment Vietnam. fying his program as a tax increase~ Even Jackson at Manassas and Chancellors­ His father would want it. so. In peace here, however, we underestimated. The rev­ ville; George Pickett at Gettsyburg; and war, both have met the ultimate enue table looks like this: Chesty Puller at Guadalcanal arid in test: "The highest traditions of the the retreat from the Chosin ReservQir-. U.S. Naval Service." REVENUES in victory and defeat, the names of There are none higher.e {In billions] these great Virginians have caused millions of American fighting men to filS! year . lola! seek excellence, to carry on the best in THE CARTER "SHELL GAME" 1980 1981 man's nature rather than the worst or the mediocre. HON. STEVEN D. SYMMS $6110.0 $1,124.0 t~;oos·: : ::::::~ : ::: :: ::::::: : ::::::::::: : ::: $52~ 11.5 ...... This is the real legacy of Chesty OPIDAHO 3.0 "'"""""""'" Puller and the men like him, not just IN THE HOUSE OF REPRESENTATIVES ~ew~~~.:::::~:: : :::::::::::::: ::::::::::: ~ 10.0 ...... our· respect and admiration, but a March ...... - 532 624.5 1,156.5 sense of obligation that we not let Tuesday, March 18, 1980 them down-that we ourselves, in the • Mr. SYMMS. Mr. Speaker, on the· editorial page of today's Wall Street In the seven weeks between the two budg­ frustrations of political , disagreement ets, the government's tax take went up $32.5 as well as in the fire of battle, in build­ Journal, the austere budget recently billion over the two years. The increase in ing ships or conducting businesses, submitted ·by President Carter was tax revenues from one fiscal year to· the that we try, as best we can, to ~arry on carefully examined. · next soared to $92 billion from the $76 bil· a tradition of excellence so that a fol­ As th~ atticle explains, by simply lion already predicted in January. With the lowing generation may have a similar juggling the books and increasing large tax boost already proposed in Janu­ standard to challenge and meet. taxes, the net effect on expenditures is ary, Mr. Heinemann calculates that you have.the biggest peace-time tax boost in his- · As one young second lieutenant 29 zero. It seems that whiie the adminis­ tration preached austerity, -it was actu­ tory; taxes will rise from 20.5% of GNP in years ago, I was privileged to serve in calendar 1980 to 21.9% in calendar 1981. the 5th Marines, alongside then-Colo­ ally proposing a continuation of the Thanks to these gigantic tax increases, nel Puller, commanding the 1st Ma- "tax and spend" philosophy that· has you can say the budget· is in balance, pro­ . rines. The ship which transported my plagued our economy. _ · Vided <1> you ignore the government's off­ replacement draft to Korea was Since the administration has been so budget credit activities, see below, and <2> named the General J. C. Breckinridge. recalcitrant in seriously recognizing you can persuade yourself there won't be the problems fu the state of the econo­ any .more spending revisions like the ones in I remember reading a wardroom the last seven weeks.e plaque describing General Breckin­ my, it is incumbent upon the Members ridge's heroic service during World of Congress to take affirmative action War I; but more importantly, I re­ with regard to reducing Federal ex­ NOT SHIPSHAPE? member his two fine sons, both lieu­ penditures. tenants, later joining and serving with 'rhe following is the article that ap­ HON. PATRICIA SCHROEDER distinction in my regiment, the 5th peared in the Wall Street Journal Marines, one being killed in combat which explains in detail the new OF COLORA~ within 2 months of his arrival. Carter budget: IN THE HOUSE OF REPRESENTATIVES ·I chose the 5th Marines because my ONE-DAY.BUDG!."l' CuTs Tuesday, March 18, 1980 we· were wrong to suggest in these col­ best friend's father had served with umns yesterday that the Carter administra­ e Mrs. ·SCHROEDER. · Mr. Speaker, that regiment at Chateau-Thierry and tion would take back its budget cuts after the situation in Iran has caused serf- . Belleau Wood. .Two of his sons- also the November election. It· has taken them ous doubts about the readiness of our served with distinction in the 1st Tank back already. military forces to meet a crisis involv­ Battalion at lnje, the Punch Bowl, and We pride ourselves in a healthy measure lrig limlted mUitary operations. The other places. · of skepticism, but we were taken in by the challenge of correcting these readiness March 18, 1980 EXTENSIONS OF REMARKS 5807 problems must be shared by both con- In hearing after hearing, Adm. Thomas erty established by our Founding Fa· gressional and military planners. The Hayward, the chief of naval operations, has thers. To protect our open society, it is solutions must be derived from a coop.. proclaimed that the Navy .-nust "take the imperativ.e that we remain aware of erative effort on the part of these two battle to the eneii)Y.. and destroy the Soviet the attitudes and intentions of the fleet. But this strategy would bring an all- groups. We should be open to all sug- out response from Soviet air, surface and Communist mentality. If the Soviet gestions as to the orgin and depth of submarine forces. Union is repressive in its dealings with the problem. To counter this, the admirals have used its own citizens, how can one expect Jack Anderson has some good obser- their money to buy blue chips-the most ex- anything different in Soviet conduct vations on this issue. The article, from pensive, technologically sophisticated ships in dealing with the United States and the March 16, 1980, Washington Post, they can build. A modem destroyer is the with its neighboring nations? follows: · size of a World War II cruiser, while the The article, written by Mr. Kevin new Aegis air-defense cruiser-intended to Kl d in th t d NOT SHIPsHAPE be able to penetrate Soviet waters-has a ose, appeare e s a ur ay, rice ...... of •a20 million. For that money, March 15, 1980, edition of the WaSh· Asid e f rom an 01ymp i c b oyco tt and some P .,.... • ington Post, and relays ·a drama of ev- Olytnpian rhetoric Jimmy Carter's chief re- the Navy could buy four guided-missile frig- sponse to the ·turinoil in the Mideast has ates, with less sophisticated gadgetry but eryday life in Soviet Russia: been to deploy a 21-ship naval task force to more firepower. CAKE, SAKHARov, KGB: INGREDIENTS TO the Arabian Sea. The Navy's single-minded pursuit of high- SoviET TALE At first glance, that would appear to be a technology hardware at ruinous expense Moscow, March 14.-This Is a true tale of formidable deterrent to any further Soviet has drawn much criticism in Congress and an elderly woman, the KGB security police, aggression or Iranian irresponsibility. A ·elsewhere in the Pentagon. Studies by the -and a chocolate waffle cake. closer examination, however, reveals some Congressional Budget Office have shot It Is a short episode, but like so many of serious deficiencies behind this display: the down the admirals' insistence that they tts kind, tells much about the shape of life ships are beset with manpower and equip- must attack the Soviet fleet to protect in this nation of 263 million. The woman ment shortages that could impair their world shipping lanes. shall remain namele&& at her request, and combat ability. To fight the kind of war the admirals she never asked the names of the agents, on The Navy's problems, so starkly illustrat- foresee, and also have the quantity of ships what is accepted here as the sound theory ed in the ·Arabian Sea fleet, are not new. that could respond to less than total-war sit- that they would not have given their proper Here are some critical shortcomings: uations, would be ·financially impossible, names anyway. The Navy's overall shortage of some Pentagon sources say. President Carter's The events began Sunday morning, when 20,000 mechanics and technicians has forced 1981 budget encourages the admirals in the woman cltmbed aboard an Aeroflot '10-hour work weeks on some key personnel their quest for expensive quality. plane at Moscow's Domodedyevo Airport in the Arabian Sea task force. Their morale Meanwhile, the Soviet navy is expanding and headed for Gorki, 250 miles to the east, IS hardly Improved ·bY the knowledge they in just the direction that will give them the bearing the cake for her friend, Andrei Sak.; could be working half as hard and making edge in the llmited confrontations that are harov. twice as much money if they were civilian& the likely battlegrounds of the next few dec- When she arrived in the provincial city of The flotilla could be put together only by ades.e his exile, she got a taxi and gave the driver stripping the Mediterranean and Pacific her destination several miles away: Scher· fleets, leaving them at dangerously · low CAKE, SAKHAROV, AND THE binfl No. 2, Prospekt Gagarina, building No. levels of ce.pability. The Navy has been com- 213, flat No. 2. The cab went a short dis- pelled to keep many of its vessels, like the KGB t&.nce and was stopped. A uniformed police- aircraft carrier Kitty ICawk, on sea duty far man orderea her out of the car, took her in· beyond the rotation schedule, further ag- HON. JOHN H. ROUSSELOT ternal passport and ushered her into a sta- gravating already severe morale problema. tion house. Classified . reports disclose equipment · OP CALIFORNIA "We've already been waiting 15 minutes shortages in the special task force of every- IN THE HOUSE OF REPRESENTATIVES for you," he announced. thing from spare parts to missiles. One Tuesda"', March 18, 1980 She sat for 90 minutes in a small room, secret study wa.rnS that the F14s on our car- :~: and at last a tall man wearing the latest in riers would have to go into combat without e Mr. ROUSSELOT. Mr. Speaker, I well-made clothes entered the room with· full loads of missiles. Meanwhile,· at Navy would like to take this opportunity to another official. The tall man got right to facilities throughout the world, mechanics bring to the attention of my col- the point. are cannibalizing warplanes to build up leagues an article which refreshes my "Why did you come to see Sakharov?" spare-parts inventories. faith in. the American system of gov- "To spend some time with them [Sak- The shortage of ships has existed since ernment. Altogether too many people chharov aantedwafhisfle wifcak.eel... and bring him this the Nixon-Ford years, when the Navy re- 0001 tired nearly half its existing fleet. The 'ad- take for granted our first amendment The official pondered this for ~ moment, mtrals' hopes for replacement warships were rights. Indeed, these are the constitu- then said, "I can't believe that a 70-year-old scuttled by budgetary restrictions. The de- tiona! safeguards which make our Re- woman would fly here from Moscow Just to cline continued under Carter, and the Navy public great. The enjoyment of these give someone a cake." He shook his head in now has just 531 ships. rights carries ·a solemn obligation to . wonder. "You've brought us a mystery." What makes matters worse 1s that ·the protect and preserve these privileges "I'm very sorry for you," replied the Navy's Importance has increased d1ll'inl the for future generations. woman. "You don't know the meaning of · very period when its strength has declined. A The article concerns the Soviet love. People honor men of genius. They recent Brookings Institution study found honor arid love Sakharov." that the Navy was called upon in 177 of the Union's treatment of dissidents, and "It's a mysteey to me why you would come 215 occasions on which the United states magnifies the deplorable dangers pre- only to ·give him a cake," the man repeated. used military force between 1946· and 1G75. sented by communism. Not · only are "How do you want to go back home?" "There's nothing gotng on in the world these dissidents exiled from the main· "I don't want to," said the woman."I also right. now that indicates we need less of the stre~ of Russian society so as to con- want to see Elena Gregorievna [Sakharov's Navy," a Pentagon sourCe told my associate tain their unacceptable views, ·but out- wife]. She's not under the terms of exile. I'll Peter Grant. Indeed, . the, recent events in side contact with friends is impeded take the cake to her." Iran and Afghanistan-and Carter's chosen and often denied. Andrei Sakharov is a "No. You'll be abie to see her in Moscow," response-illustrate 'dramatically the need remarkable man with·courage to speak said the well-dressed official politely. "Do to~=P ~~~~a~~o~l~ri:'b:!:::U:~~d en- his mind freely in the face of a repres- ~~k;.ant to take the train or the plane tirely to budget-cutters in Congress and the sive government-a government which "I'd like to see a little of Gorki first." White House. In fact, the Navy historically expressly denies what is for us an in· "I'll drive you around myself." shares the pirate's share of l)efense Depart- alienable right: Freedom of speech. It "I'd rather go on two feet." ment appropriations. Much of the problem is hard fo.r Americans to.visualize life, "You can see it from .the windows of my is self-induced, a result of the a.dmir8la' ob- or rather existence, under· a totalitar- car," he replied. "You can send me out on a session with an aggressive, · "go-get-'em" · ian regime. A sterile life with disre- plane or a train," the woman said as she strategy for carrying an all-out global con- gard for individuality and personal conceded-partly. "But when the ice ts out filet to the shores of the Soviet Unio. n. of the river in the summ b t Their plans for World War III have neglect- Preference is entirely antithetical to coming to Gorki. They will er,carry oa too ers many are ed the kind of limited military operations our constitutional government and the people for you to count. There Is no ~lding that they are more likely to be called upon American way of life. We are blessed back all those who will come here- tO see to wage. with the guarantees of individual lib- him." 5808 EXTENSIONS OF REMARKS March 18, 1980 The official made no reply, but sat With these words .from the Bible I would CHILD NUTRITION PROGRAMS glumly. Then he agreed to deliver the like to characterize A. D. Sakharov. chocolate waffle cake himself and allowed He does not forsake the truth, although her to write a .note for the Sakharovs to go there are s0 few who maintain it in my HON. RONALD V. DELLUMS with it. country and the oppression is difficult for OF CALIFORNIA "You can't say we've been unpleasant to them to bear. IN THE HOUSE OF REPRESENTATIVES you," he remarked. He does not know of God as we Christians Tuesday, March 18, 1980 "No," she said, "You've only stopped me know Him, but he has been trying to gain from doing what I wanted." protection for Christians in the USSR be­ e Mr. DELLUMS. Mr. Speaker, I She was sent back to the airport under cause God is able to work his will even would like to bring to the attention of escort to wait for the next flight to Moscow. through those who do not recognize Him. my colleagues highlights of the very The KGB bought her ticket, since she re­ pertinent and important -testi~ony of fused. "You've spoiled our Sunday,'' the · His influence has been a means of protec­ plainclothes guard said reprovingly. tion for Christians trom the tyranny of the a constituent, Ms. Frances McGlone, "And you've spoiled mine,'' she replied. KGB. He has been a fighter for his rights of who today appeared before the Educa­ The next day a telegram from Sakharov's the suffering people of this country and he tion and Labor Subcommittee on Ele­ wife arrived at. the elderly woman's Moscow does not deserve any punishment by the So­ mentary, Secondary, and Vocational home. "We're sadly eating the cake without viet government. Education. you," she wrote. We saw him twice when we were in there­ Ms. McGlone is the director.of food ~ "This isn't exile and it isn't prison,'' said ception room of the Consulate Section. The services and nutrition education in the the elderly woman. "It's called house arrest first time he came up to us and found out Oakland Unified School District and ln any other country."e what was happening and why we were here? was a pilot project director on the we found out that dren in 145 preschools, children centers, ele­ well-being and personal freedom. how­ he wrote the letter and that he did not re­ mentary and secondary schools. Over 7 'A& ever little there was .. ceive anyresponse. million breakfasts and lunches were served Now I feel that it is our obligation is to to children in the Oakland schools last year. Since coming to the Embassy, the come forward and speak out for the protec­ The largest number of meals were served to group has lived in a sort of semi-incar­ tion of such a fine person who had so many needy children either free or at a reduced ceration in the basement of the build­ times protected others. price . . • 96.2% at breakfast and 82.9% at ing, awaiting some disposition of their lunch. When Christ's help was needed by the Oakland is an old city. Many of the school fates. But in that time, they came to centurion who did not believe in God the know and love another Russian dissi- facilities are inadequate for food service ... people went to his defense and said to without kitchens . . . without serving -dent, Andrei Sakharov, who, as you Christ. "He is worthy to have you do this areas .•• without dining rooms. Food serv­ know, faces troubles of his ·own with for him, for he loves our nation.'• Luke '1, 4- ice is available to all children in .all schools, the Soviet regime. Before his exile, 5. Therefore we are turning to all the Chris­ using different food delivery systems ... on Sakharov attempted to intervene on tians around the World-he is worthy that site preparation, central kitchen production behaU of the Pentacostals with lead­ you raise your voices for his protection and arid satellite service. Meals are available to ers of the Russian Government. But also for the protection of many of the other all the children in all the schools in Oak­ without success. Now the Pentacostals suffering Christians such as Dmitrii Dudko land. We care about the children in our hope to return favor. -· and the many many others. schools. The Superintendent of Schools and Board of Education are very supportive of I have .in my possession a letter writ­ They wait for your help! Listen to them at the Foodservice Program. ten by Lidia Vashchenko, one of the last! You who have remained silent so long My testimony today is directed toward Pentacostals, to Mr. James 0. Walker, and please, help those who already been one specific segment of the operation of a professor at St. Olaf College in hearing and helping. school breakfast and lunch programs . . • Northfield, Minn. Mr. Walker visited With the disappearance of such people the the role of commodities; with the group during a visit to world has lost very good and honest people As a pilot project director on the Cash in Moscow in January. The professor is from its ranks and it becomes harder and Lieu of Commodities Program last year, I harder to live when justice and good people am pleased to report to you that the lunch one of my constituents and he teaches participation increased and the food costs at my alma mater. are flouted and because of acts of violence decreased during the pilot project year. Lidia Vashchenko's letter- is an they are no longer present on this planet. I wish to challenge the U.S. Department appeal to free- people everywhere to And those who are acquainted with the of Agriculture report on the pilot project as rally behind Mr. Sakharov's cause, as friendly embraces of the KGB, know that it related to the Oakland. California well as that of the Pentacostals' and they watch the reaction however big or schools. The USDA did a comparative study persecuted religions in the. Soviet small and then they wait for the convenient for one month only. The data reported on Union. I submit this letter for the moment to smother. the meal costs is not accurate and does not show the full impact of the cash program. RECORD: Therefore be courageous, look truth ln The bottom line is the fact that on one year the eyes, and understand the menacing re­ with the cash program the school district REQUEST TO CHRISTIANS AROUND THE WORLD ality of the situation. did better financi8lly. Both food and labor "You shall not follow a multitude to do May God help you. costs decreased while the school district was evil; nor shall you bear witness in a suit, on the cash program. Both food and labor turning aside after multitude, so as to pre- LIDIA VASHCHENKO. costs have increased now that the district is vent justice."-Exodus 23-2. · .January 2'1, 1980.e back on the commodity program. The fol- March 18, 1980 EXTENSIONS OF REMARKS 5809 lowing figures will substantiate this state­ STATE OF CALIFORNIA SERVICE AND HANDLING CHARGES of the paper work generated by one com­ ment: FOR COMMODITY FOODS modity processing contract for one finished [In percent) product. With a Commodity Letter of Credit, this Charge per 1977-78 1978-79 Year tG date- Product case entire process would be eliminated. The school year school year December 1979 commodity would still be removed from the BUtter, 36/1# ...... - .. . 1 $4.20 market, but it would be in a form that could Food costs ...... 53.3 48.5 55.3 Mouarella cheese, 8/6# ...... •6:50 be used by the school district. labor costs ....•.....•••••.••• 52.3 49.7 54.2 Ground beef, 55# ...... -...... 14.75 Additionally, with processing contracts, it Yearend loss,...... ••. (11.2) (2.7) (14.6) 5.80. 8.45 . is not inconceivable that a product could be ~~~ ~1~~~'2:;.~~:: : ::::: ::: :: : :::::::::::::::::::::::::::::::::::::: 10.60: shipped across the country several times. These figures clearly demonstrate that Turkey rolls, 4/10# ...... 9.30 For example, USDA could make a purchase of chicken in Alabama and it would be the project had a positive ·impact on the fi­ 'Increase to $6.90 on Mar. 1, 1980. nancial operation of the food service pro­ ttncrease to $10.40 on Mar. 1, 1980. ·shipped to California. If I had a contract gram in the Oakland Unified School Dis­ with a processor in Arkansas to cook the trict. All of these charges must be paid by the chicken for the Oakland schools, it would Although food and labor costs are an im­ school district from local funds. In review­ then be-shipped back to ArkansaS for fur­ portant part of the program, we must not ing the commodity handling charges in the ther processing, and then shipped back to overlook student participation. The lunch State of California, I wish to emphasize the the Oakland schools in California. participation in · the Oakland schools in­ fact that the Office of Surplus Property as­ There are times that it can be more cost creased 12% during the pilot project year as sesses the same charges whether the foods effective if the. food is. purchased. directly shown by the following figures: are delivered from the state warehouse to from the distributor instead of using com­ the school district or if the school district or modity foods. An example is clearly evident processor goes to the state warehouse to in the case of raw chicken processed into Average Average daily number Percent pick up the commodities. I have complained cooked chicken. The USDA has made many attendance I~ per participatiOn many times about the inconsistency in this purchases of raw chicken this year and it day policy. Additionally, I have done a survey of sounds like a good buy; however, when the . other state handling charges and find that added costs are included, this is the final October 1977 .•...... 52,767 33,731 63.9 the charges in the State of California are cost in terms of taxpayer dollars: October 1978 ...... 48,916 37,130 75.9 higher than any other state. With your per­ mission, Mr. Chairman, I would like to enter OSDA frozen cutup chicken, per pound average price (Feb. 11- into the record letters from the USDA and 15, 1980) ...... $0.5323 · Actually, in spite of a declining enroll­ ~ate ~ and ~ndling costs, per. pound '...... : U~ ment in our schools, we served more lunches State of California Department of Educa­ every day. Because of the cash program, we tion replying to my correspondence on com- st:;~~~~~~ . ~i'iXiiiiKi ' ;::: : : : :: :: ::::::: : ::::::: :: ::::::::::::::::::~ had more flexibility in menu choices and modity charges. · Total...... 1.1504 were able to be more responsive to the stu­ In addition~ the local school districts must dents' ·requests. bear the costs of storing and delivering the 1 Paid by the schoo! district. Mr. Chairman, I do not want to give you commodity foods. I have reviewed the quan­ the impression that I am opposed to com­ tity of commodity foods that could have I can buy a .precooked chicken today at a modities, because that is not the case. I am been ordered for the Oakland schools for bid price of $.839 per lb., delivered by my very aware that the program could not oper­ September and October of this school year. 'distributor to each kitchen. ate without the commodity support. I want If all the commodity foods were accepted, it With a Conm10dity Letter .of Credit, I to discuss some of the problems generated would have amounted to 31,111 cases or .841 could use more commodities. I would have by the commodity program as it exists cases for each school day. the advantage of purchasing foods with the today and further discuss so;me areas for im­ In Oakland, I pay an additional $1.48 per commodities in a more usuable form. An ex­ proving the operation of the program. case for a storage period of one month and ample is the chicken: If purchased directly delivery to the school site. If the storage from the school district with a Commodity During the 1977-78 school year I accepted period exceeds one month, the charge is in­ commodities with a fair market value of Letter of Credit, the cost would be lower creased proportionately. If the entire alloca­ and I would be able to accept all the poultry $490,946, but did not accept commodities tion of commodity foods offered in Septem­ with a fair market value of $477,807-in offered. With a Commodity Letter of Credit, ber and October of this school year was ac­ I would accept flour to be used towards pur­ other words, I only accepted 50.68% of the cepted and if every case was used within the commodities available. chasing bread and other baked goods. Now, 'one month period, the.storage and delivery I do not accept any flour. With ·a Commod­ Many of the commodities are difficult to charges would have been $45,422. ity Letter of Credit, I would accept nonfat use in the Oakland schools. Many of the If I accepted the entire allocation of com­ dry· milk to be used toward purchasing Me&­ commodities are impossible to use in the modity foods offered to the Oakland schools zarella Cheese. Now, I do not accept any form offered. So far this school year I have for September and October of this school nonfat dry milk. With a Commodity Letter refused to accept the following commod­ year, the payments to the Office of Surplus of Credit, I would accept oil to be used ities: Bulgur, Canned Poultry, Canned Property in the State of California for Serv­ toward purchasing mayonnaise and salad Small Red Beans, Canned Tomatoes; Com­ ice and Handling charges would have dressing. Now, I do not accept any oils. In meal, Cranberry Sauce, Dehydrated Sweet amounted to $84,678. other words, I could get all the benefitS of Potatoes, Flour, All Purpose Flour, Bread, A school district cannot participate in the the commodifies without the paper work Flour, All Purpose Unbleached Flour, Whole commodity program unless the state han­ and extra added costs. Wheat, Frozen Chicken, Mashed Sweet Pota­ dling charges are paid. A school district Commodities· are not given to a school dis­ toes, Nonfat Dry Milk, Peanut Granules, cannot participate in the commodity pro­ trict ·free. They are part of the support for Purple Plums, Rolled Oats, Rolled Wheat, gram unless the school district is willing to the progtam. They are a very necessary part Salad Oil, and Shortening. Mr. Chairman, I ·furnish and/or pay for local storage and de- of -the support for the program. Our pro­ want to go on record expressing my concerns livery. If the commodities were fully used to grams could not exist without the commod­ about the local school district costs when the maximum during September and Octo­ ity support. If I do not accept all of the commodity foods are ordered. After the ber in Oakland, the extra cost would add up commodities, I'am costing myself reimburse­ USDA had spent federal dollars to make the to $130,000 or $3,516 per school day. ment. purchases of commodity foods, more federal If this is projected to a 175 day school Mr. Chairman, I do not want to refuse the dollars are spent to ship the commodity year, the total cost could add up to $.615,300 commodities. I have no problem with price foods to the state agencies across the coun­ in the Oakland schools. Do you really be­ support and trying to use the commodities. try. The state agencies spend more dollars lieve that the Oakland schools .should ·spend Dollars are in short supply in public school (either state or school district dollars) to over one-half million dollars for service, systems . . . . dollars are in short supply in store and deliver the commodities to school handling, storage and delivery costs for state agencies .... and dollars are in short districts. At that point, the local school dis­ commodities? Wouldn't this money ·be supply at the federal level, too. tricts begin to spend their local dollars. better spent to buy food to feed children? Mr. Chairman, a system could be· devel­ School districts in the State of California In addition to these costs, many times it is oped to insure minimally the same usage are charged State Service and Handling necessary to have the commodity foods fur­ and realistically a far greater usage of com­ Charges for all commodities offered. These ther processed to put them in a usable form. modity foods. That system is the Commod­ charges are made by the Office of Surplus Mr. Chairman, the amount of paper work ity Letter of Credit. The Commodity Letter Property in the State Department of Educa· generated bY a Commodity Processing Con­ of Credit is commodity specific, quality spe­ tlon. Some examples of the charges in the tract is tremendous. I would like to request cific, timing specific, and price specific in State of California are as follows: permission to enter into the record a sample that it gives me a maximum price that 5810 EXTENSIONS OF REMARKS March 18, 1980 USDA will pay me to remove the specified on new oil, gas, and. coal technologies: received the most number of votes number of pounds of a specific commodity .do not support a freeze on construe­ with President Carter only a short dis­ In a specified time period. I would not have tion of nuclear energy generating tance behind him. Fomier President to p~y state h~ndling charge for this Com- plants, and favor rationing and a man­ Ford received many write-in votes, ac­ modity Letter of Credit. I would not have to datory odd-even program as conserva­ pay storage and delivery charges for this counting for 10 percent of the total. Commodity Letter of Credit. The commod- tion measures. . Mr. Speaker, I call to your attention ities would be delivered when needed and I also asked my constituents to indl­ and that of our colleagues and the ad­ the commodity foods would be removed cate a Presidential preference, bellev­ ministration my constituents' views from the market upon acceptance of a bid. ing that their selections might give and ask that you Join me in keeping Mr. Chairman, thank you for the privilege further insight into their attitudes them in mind as we work to find an­ of testifying before your Committee today toward the issues debated by the swers to the challenges before our about the commodity progra.lll. I will be d did t h ti 1 happy to respond to your questions regard- ozen ca~ a es W o were ac ve Y great Nation. tng my testimony.e campaigmng in early February. Our The results, by rounded off percent­ former House colleague, George Bush. age, follow: · CONGRESSMAN McEWEN RE· PORTS RESULTS OF DISTRICT SURVEY RESULTS OF FEBRUARY 1980 LEGISLATIVE QUESTIONNAIRE HON. ROBERT C. McEWEN (Ill pen:ent) OF NEW YORK Yes No Undecided IN THE HOUSE OF REPRESENTATIVES 1. Should we increase our defense budget aimed at parity with the Soviets in conventional and tactical Tuesday, March 18, 1980 . weapons and forces? ...... 81 14 • Mr. McEWEN. Mr. Speaker, once 2. =kiJ~~~~n~~~~- ~.. ~~~~.~ ..~~:~~~:~~ .. ~~~.. ~.~.~~.. ~~~.. ~~.~~ .. ~~.. ~~ .. 78 18 again I am pleased to report to our col­ 3. Should the Federal GoVernment impose wage and price controls to combat inflation? ...... _ 57 36 4. Do you favor Federal deregulation of interstate trucking, buses, and railroads similar to the lessening leagues the results of my annual of controls on airlines? ...... : ...... 66 . 21 13 winter poll of constituent attitudes 5. Should interest on a savings ~nt be made tax-exempt? ...... 82 15 3 6. Do you favor a national SaleS tax which is added to consumer goods at each stage of production toward issues facing the Congress. The (the Value Added Tax) as a means of reducing social security and other payroll taXes? ...... 25 69 questions ·were contained in my news­ 7. Should there be a Federal law requirin& the registration of handguns? ...... 53 44 8. Do you approve of tile Federal Gowrnment givmg financial assistance to~ Corp.? ...... 40 53 letter mailed to residents of the seven 9. Should there be a freeze on construction of nuclear ener_gy generatins plants? ...... 42 51 count~es which encompass New York's 10. How should Federal money be spent toward achlevmg energy iildependence? Rank in order of importance. . 1st 2d 34 ' 4th 30th Congressional District in early ' 30 25.0 30.5 16.7 February. As of today, nearly 7,000 re­ 16 l9.3 19.3 45.4 40 29.3 23.1 7.4 sponses have been ·counted and tabu­ f'~.i.~~::~:~::~::~:~~:~:=-:~:~:~~:~:0: 14 26.4 27.1 30.5 lated. 11. Which of the petrolun energy options would you favor as conservation measures? Rank first through fourth choice: The responses and the hundreds of 50 _cen~ a ga!IOI! addltklnal Federal tax on fasoline ...... ; 7 14 25 55 personal comments which were noted Nat1011W1de rationing &:fam ~ Departmen of Energy ...... ;...... 35 28 21 17 on the returned questionnaires show a 25 17 36 21 ~~O:ra:=: :r: ..-...~~~~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::::::::::::::::::: 33 41 18 1 very deep and genuine concern· on the 12. Who is your first choice as our next President? Anderson, 3; Baker, 6; Brown, l; Bush, 25; carter, part of my constituents for our Na­ 23; Connally, 5; Crane, 2; Dole, 0.3; Fernandez. 0; Kennedy, 9; Reagan, 15; Stassen, 0; Write·irt tion's energy problems. They clearly Ford, 10, favor their Federal dollars-being spent •