MICHAEL J. HARRINGTON: A TRUE PATRIOT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000500090058-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 16, 2016
• Document Release Date: August 17, 2005
• Sequence Number: 58
• Publication Date: July 22, 1975
• Content Type: OPEN

E 4034
required the performance of official du-
ties on days other than those for which
fees were claimed and docket entries
made. Oftentimes, the provided fees were
of the single fee nature "for all services
rendered after the presentation of the
accused" or "in lieu of all other fees pro-
vided in this section" where petty of-
fenders were tried and sentenced, and
did not reflect the fact that the Commis-
sioner's efforts extended over more than
a single day.
It is important here to note that these
28 former Commissioners, in order to
qualify for coverage under the Civil
Service Retirement System, had to earn
at least $3,000 annually for 3 consecutive
years after June of 1945. In view of the
small size of the fees and the number of
sequential proceedings which had to take,
place before any fee could be claimed,
a Commissioner would have to conduct
an average of 300 to 400 proceedings a
year to have reached the $3,000 level.
Given the fact that these 28 magis-
trates met the above requirements dur-
ing their service as U.S. Commissioners,
I believe that it is fair and equitable to
assume that they must have performed
the 260 days of service required for a full
year's retirement credit during their ap-
pointment as Commissioners. Such an
assumption, which the measure I have
introduced today would codify, is both
just and necessary if we are to make the
former Commissioners' compensation
commensurate with the volume of their
workload, the time they were required to
expend, and their services to the people
of the United States.
ANRICAN TALENT-ATHLETICS
TO ART
HON. LOUIS STOKES
OF OHIO
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 22, 1975
Mr. STOKES. Mr. Speaker, I am
pleased to; bring to the attention of my
colleagues the United States of Amer-
ica-African Invitational Track Meet that
will be held in Cleveland on Wednesday,
July 23, 1975. This important and bene-
ficial event is being sponsored by the Lake
Erie Chapter of the Amateur Athletic
Union of Baldwin Wallace College in
Berea. I am sure my colleagues will agree
that there is no better way to initiate
much needed improvements in this coun-
try's working relationship with African
nations than to participate in nonpoliti-
cal events such as this. The city of Cleve-
land is honored to sponsor this kind of
cooperation.
The athletes involved represent some
15 countries, including Kenya, Nigeria,
Ghana, Ethiopia, Uganda, Algeria, Ivory
Coast, Egypt, Upper Volta, Mali, Senegal,
Gambia, Tanzania, and Tunisia. After
the Wednesday track meet they will stay
in Cleveland 2 additional days to meet
with city officials and visit a few of our
fine tourist attractions, including the Na-
tional Aeronautics and Space Adminis-
tration. They will also enjoy a soul food
dinner and fashion show at the Karamu
House. The festivities will culminate on
Friday, July 25, with a welcome to Cleve-
land banquet at the Crawford Auto and
Aviation Museum.
In addition to Mr. Buddy Rich, who is
the coordinator of the meet, hosts and
hostesses to the delegation include Wil-
liam H. Seawright of Seawright Enter-
prises, the official host; Mrs. Mae Stew-
art, commissioner of East Cleveland;
Mrs. Cheryl Wills, of the House of Wills;
John Nagy, commissioner of recreation;
Dr. Donald G. Jacobs of the Greater
Cleveland Interchurch Council; Artha
Woods of the Artha-Jon Modeling
School; George Anthony Moore; Larry
Plants; and Charles Patterson.
Mr. Speaker, I cannot overemphasize
the importance of American-African in-
teraction to all nationalities involved,
and to black Americans In particular. I
look forward to November 22, 1975, when
this week's events will be reciprocated at
the Second World African Festival of
Arts and Culture in Lagos, Nigeria. Rep-
resentatives from Cleveland are already
making plans to attend, most notably the
Karamu House.
Mr. Speaker, I am sure that my col-
leagues join me in extending, their best
wishes for a successful, rewarding, and
unifying 3 days. A recent outstanding
article on this event written by George
Anthony Moore appeared in the Cleve-
land Press on Friday, July 18, 1975. I
coramend that article to mry colleagues:
AFRICAN TALENT--ATHLETICS TO ART
(By George Anthony Moore)
On Tuesday 50 African athletes will arrive
here to take part in the united States of
America-Africa Invitational Track Meet
sponsored by the Lake Erie Chapter of the
Amateur Athletic union at Baldwin Wallace
College in Berea. They will represent some
15 countries of black Equatorial Africa and
those north of the Sahara Desert.
Their presence in our city should be a
gentle reminder to tins that Nov. 22 of this
year will mark the opening of the Second
World African. Festival of Arts and Culture
in Lagos, Nigeria, It will extend to Dec. 29,
exhibiting another dimension of African life.
Cleveland is making plans to send musi-
cians, dancers, artists and dramatists to this
event, and we hope the world famous
Karamu Theater will be asked to perform.
Mrs. Mildred Mitchell, a faculty member of
Cleveland State University, Is the coordinator
for this area. I know that many Clevelanders
are planning to attend as visitors.
When I visited Nigeria.in October of 1966
I was impressed to learn that this is the most
populous country in Africa and it accounts
for almost 26% of black African people. It
covers an area, about the size of California,
Nevada and Arizona combined, ' and has a
population of 79.8 million people.
Among its natural resources are oil, tin,
iron ore, coal, limestone, lead, zinc and tim-
ber. This nation ranks eighth in the produc-
tion of oil and is the world's largest exporter
of peanuts and palm products and second
largest in cocoa. It also has significant rub-
ber and cotton production.
A festival village is being constructed by
the federal government of Nigeria in Lagos
for participants and visitors. There will be
apartment complexes totaling 10,041. units.
Some will have three bedrooms, sitting and
dining rooms and other amenities. Others
will have either two or four bedrooms and
sitting-dining rooms. Additional accommo-
dations will be available in a number of
luxury ships.
a 0090058Ju1
em
emar kks y 22, 1975
Dr. Leopold Sedar Senghor, president of
Senegal and Gen. Yakubu Gowon, Nigeria's
head of state, are the patrons of the festival.
Dr. Senghor is a world-famous poet.
Nigeria's new national theater will be the
center of activities. The ultra-modern $40
million building is the largest of its kind in
Africa. The theater complex comprises a
theater hall seating 5,000, a conference hall
with 1,000 seats and two large exhibition
halls and two cinema halls of 80Q seats each,
all air-conditioned.
After the track meet at BW Wednesday, the
African delegates attending the AAU meet
will remain in Cleveland for two days before
their charter plane arrives to take them to
their respective countries.
The Cleveland community will be host for
a series of events that will include sight-see-
ing, a visit with Council and the mayor, a
soul food picnic outdoors at Karamu House,
climaxed by a "Cleveland welcomes you"
banquet and reception at the Crawford Avia-
tion Museum that is open to the public.
I urge all citizens to attend and help im-
prove international relations.
MICHAEL J. HARRINGTON: A TRUE.
PATRIOT
HON. FORTNEY H. (PETE) STARK
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 22, 1975
Mr. STARK. Mr. Speaker, the New
Republic has as its lead article this week
an excellent piece by our . colleague,
MICHAEL HARRINGTON, explaining, in de-
tail and with precision, his exact role In
the question of the CIA's involvement in
Chile.
I urge my colleagues-especially those
who have criticized Mr. HARRINGTON-tO
read this piece with care, and to note
well that MIKE HARRINGTON followed ev-
ery appropriate channel within the Con-
gress to bring the issue to its proper con-
clusion.
Mr. Speaker; I submit that Mr. HAR-
RINGTON'S only "crime" was to recognize
the horror of what our Government did
in Chile, in trying and indeed succeeding
in overthrowing the democratically
elected government of Salvador Allende.
If that indeed is a punishable offense,
then we have surely betrayed ourrbasic
constitutional beliefs in open and hoil-
est Government.
I applaud MICHAEL HARRINGTON'S Cour-
age and conviction in recognizing bu-
reaucratic crime In this country, and in
attempting, by all appropriate means, to
make our Government responsive not to
a small elite group of decisionmakers,
but to the needs and wishes of our peo-
ple.
Mr. Speaker, I insert the New Republic
article in the RECORD:
CONGRESS CIA COVERUP-GETTING OUT TIM
TRUTH
(By Michael J. Harrington)
if a President engages in ;a cover-up of
government wrongdoing, as happened in the
Nixon White House, he can be challenged
through the process of impeachment,. which
amounts to Indictment and trial by the Con-
gress. But what do we do if the Congress
engages in a cover-up? Individual members
can be censured or expelled, of course, but
what if the cover-up is institutional, a
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July 22, 1975 CONGRESSIONAL RECORD -Extensions emar s E 4033
stantially different from those paid in the
United States as a whole.
it New England paid the same prices for
energy as the United States, the differential
would only be 11%. So It can be concluded
that the 35% differential is due primarily to
higher natural gas and electricity prices, and
to New England's consumption patterns
which are concentrated In high price fuels,
particularly distillate fuel oil.
COV,T COMPONENTS OF NEW ENGLAND ENERGY
PRICES
Iv appears that cost components differ
substantially among fuel types. Preliminary
information based on a telephone survey in-
dicate that the cost of crude is the major
component in New England's oil costs; the
price of coal at the mine is the primary corn
ponent in coal costs, and distribution Is in
the case of natural gas. The components are
shown in figure 2.
Gasoline and distillate show average U.S.
crude costs to the refiner, $9.22/bbl, refining
costs, and transportation from Texas to Mas-
sachusetts via pipeline and barge. To this
is added terminalling costs in the region and
the retailer's margin to make up distribution
costs. The taxes shown are federal and State-
at the pump.
The natural gas production cost is the
welhead price, $26/MCF, Transportation is .
from Texas to the final distributor in Massa-
chusetts, via pipeline. Distribution costs are
the difference between the cost to the dis-
tributor and the end-user.
The coal costs are composed of the price
at the mine in West Virginia, $25/ton, and
the transportation from there to New Hamp-
shire, $8.11; ton. Since utilities contract for
nearly all of the coal directly there are not
distribution costs shown.
It can be seen that the production costs
amount to 80% of the total cost of coal, 5914,
of distillate, 42% of gasoline, and 10% of
natural gas. Accordingly, further increases in
the price of coal at the mine or in crude oil
would have a large relative effect on the final
end price. However, doubling of the wellhead
price of natural gas would only result in a
ro, increase in the final price.
SUMMARY
Forecasts of price differentials between the
U.S. and New England cannot be made with-
out taking into account the capital changes
that may be required in the conversion to
alternate fuels. However, it appears that some
actions would probably lead to reduced dif-
ferentials. These include: deregulation of the
price of natural gas; increased use of coal;
and increased use of nuclear plants for elec-
on a baseload. Further work is required to
determine the optimum fuel mix for the re-
gion in terms of price, security, environ-
mental, and economic objectives,
HON. DEL CLAWSON
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 22, 1975
Mr. DEL CLAWSON. Mr. Speaker, an
editorial in the Lamplighter of La
Mirada, Calif., calls attention to a study
of obvious importance for this Congress.
The problem of freeing ourselves from
past program decisions cannot be over-
einohasized. The editorial entitled
"Runaway Spending" from the June 21
issue of the newspaper is included at
tilis point in the RECORD for the infor-
ma t.ion of my colleagues:
RUNAWAY SPENDING
Almost every president, congressman f?.itd
senator talks at one time or another abnrut
economy in government.
Not many do anything about it.
One reason Is that they have set up -. ile
system so that it's difficult for them to do
anything.
A study by the nonprofit Tax Foundation
demonstrates that the arc as in which Con-
grass and the President exercise control of
expenditures are relatively limited. The fed-
eral budget is described by the foundation
as "not so much a financial plan (as a
forecast of the consequences of program de-
cisions made in earlier years."
Indeed, the foundation reports that ablaut
three-fourths, or $261 billion, 'of the expen-
ditures projected in the original federal
budget fo1 the 1975-76 fiscal year were riot
subject to annual control by either C)n-
gress or the President.
That does not mean they are uncontr-ll-
able, the foundation points out. It does mean
that if Congress and the President are to
control such expenditures they will have to
exercise care at the time new programs are
created.
Social Security, Medicare, veterans' bene-
fits, housing assistance, food stamps, retire-
ment pay for military officers-these and
other programs are among those that lead
the foundation to describe government as
"a- massive transfer agent, collecting dollars
from some groups of people and then pay-
ing out those dollars to other groups of
people."
All the programs listed are good ones. But
it is easy for such programs to take over the
budget-and require higher and higher taxes.
That will happen if Congress builds into
these programs automatic escalator clauses,
if it inaugurates the programs without plan-
ning their financing, and if it sets them up
in a form that restricts annual budget review.
The payments to individuals involved in
these and other programs cost $41.8 billion
as recently as 1967. In the current fiscal your,
their estimated cost Is $165.1 billion.
There are no easy solutions, but if such
programs are not to go even more wildly >ut
of control, solutions will have to be found.
Among the solutions suggested by the "ax
Foundation:
1. Require that program. expansion or new
programs be accompanied by tax increases or
offsetting reductions in other programs.
2. Establish special goals and guidelines
when programs are set up.
3. Provide an annual budget review for all
programs.
4. Limit application of automatic escalators
in benefit programs.
"In fashioning a new budget," the founda-
tion says, "both Congress and the executive
have to an important degree become pris-
oners of past program decisions."
So far as possible, they should release
themselves from this thralldom and resolve
to avoid imposing it on future Congre:nes
and future presidents.
PERSONAL EXPLANATION
HON. CLAIR W.' BURGENER
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVE 3
Tuesday, July 22, 1975
Mr. BURGENER. Mr. Speaker, I was
not present on the floor today when the
vote was taken on House Resolution 605,
the Disapproval of the President's Order
on Oil Decontrol.
Had I been present, I would have voted
,.nay?
TO PROVIDE FULL-YEAR RETIRE-
MENT CREDIT FOR U.S. COMMIS-
SIONERS
HON. NORMAN Y. MINETA
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Tuesday, July 22, 1975
Mr. MINETA. Mr. Speaker, I today
have the privilege of introducing a
measure allowing for full-year retire-
ment credit for the service provided to
the United States by former U.S. Com-
missioners prior to the enactment of the
Federal Magistrates Act of 1968.
Prior to 1971, U.S. Commissioners per-
formed valuable and necessary service to
the United States. Under the commis-
sioner system, prior to the appointment
of the first magistrate in each Federal
judicial district, the Commissioners were
authorized by the Federal Rules of Crim-
inal Procedure to receive complaints, is-
sue warrants, and conduct precommit-
ment proceedings in criminal cases in the
district courts. In certain instances, they
were legally authorized to try and sen-
tence persons committing petty offenses
in places where the United States had
exclusive or concurrent jurisdiction. In
addition, these Commissioners were au-
thorized to take depositions, to issue at-
tachments and conduct subsequent hear-
ings in internal revenue matters, and to
settle or certify the nonpayment of sea-
men's wages.
The U.S. Commissioners were on call
24 hours a day, unless physically absent
from their official station and not within
reach, for the issuance of legal process
and the conduct of bail hearings, which
by law must be held without unneces-
sary delay following an arrest. When not
conducting formal proceedings, the
Commissioners were oftentimes obliged
to justify sureties, entertain motions,
alter bail conditions, issue release and
commitment orders, and communicate
with law enforcement personnel, defense
attorneys, and court officials; as well as
prepare the documents required in their
duties such as docket sheets, orders ap-
pointing defense attorneys, status re-
ports to U.S. attorneys and marshals,
notices to probation officers, and receipts
and accounts for fine and surety money.
Their full-time service, in the literal
sense, is virtually without parallel in
the past or present civil service. Yet,
their salaried remuneration for this
truly full-time service was statutorily
set at $10,500 annually.
Based on a January 15, 1974, ruling by
the U.S. Civil Service Commission, in-
terpreting section 8332(i) of title 5,
United States Code, those former U.S.
commissioners now serving as U;S.
magistrates. can receive only one two-
hundred-and-sixtieth of a year in civil
service retirement credit for each day
in which service performed by the then
Commissioner is either shown on fee
vouchers submitted or verifiable through
the docket sheets retained in the court
clerk's records.
Unfortunately, however, for the 28
former U.S. Commissioners who are now
magistrates, the nature of their office
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July c2, 1975 CONGRESSIONAL RECORD-Extensions of Remarks E 4035
product of the most time-honored rules and
rituals?
This is precisely the problem that con-
fronts us in the unfolding story of CIA
and other -intelligence agency misdeeds.
To be sure presidential decisions and actions
are involved here too, but now we have a
situation where members of Congress, In
their capacity as overseers of intelligence
agency operations, had knowledge of the
most blatant crimes and improprieties and
nevertheless did nothing. The instance I am
most familiar with concerns the CIA's
accomplishments on our behalf In Chile
in the early 1970s. The reactions to that
record by those who came to hear of it
are a sobering illustration of the great con-
gressional weakness-the habitual reflex of
avoidance and acquiescence, masked by the
Illusion of activity.
In April of last year, CIA Director William
Colby appeared at a closed session of Rep.
Lucien Nedzi's Armed Services subcommit-
tee on intelligence and described his agency's
Yong-term involvement in the political proc-
ess in Chile, where a bloody coup against
Salvador Allende Gossens in September 1973
had led to the installation of a military
dictatorship. Mr. Nedzi had called Colby in
at my urging, so naturally I wanted to know
what the director had to say. Not being a
member of Armed Services, I had to/make
special arrangements to view the classified
transcript in the committee offices-the
privilege of any House member-and after
some initial difficulties with the staff there,
I got my first look at the material on June 4.,
What it said left me appalled.
The authorization of bribery, the funding
of political factions and propaganda cam-
paigns, the fomenting of strikes and
demonstrations, a myriad of destabilizing
actions-all directed against the duly elected
leader of Latin America's most sophisticated
democracy-are now matters of public
record. Not only does that record indicate
violations of standing treaties and other
affronts to Chilean sovereignty; it also shows
that President Nixon and Secretary Kissinger
had lied repeatedly to the American people
about our involvement there and that some
administration figures had apparently per-
jured themselves on the matter before
certain committees of Congress.
Determined to get some congressional ac-
tion that would bring these things to light,
I approached Mr. Nedzi and asked him what
he planned to do with this information. He
replied with a philosophical shrug. He had
taken the testimony as I asked-what more
could one do? This information, after all, was
secret.
Knowing full well from my short-term ex-
perience as a member of Armed Services
(ending in 1973) that Chairman F. Edward
Hebert would be even less inclined to pur-
sue the matter than Mr. Nedzi, I spoke with
several subcommittee chairmen of House
Foreign Affairs, of which I am now- a mem-
ber, and then with some of my staff. I also
sought the advice of Larry Stern of The
Washington Post, a personal friend who
clearly understood that the story was not
to be released. But the reactions of the sub-
committee chairmen and other Foreign Af-
fairs colleagues, though generally sympa-
thetic in tone, were equally lacking in com-
mitment. Yes the Chile story sounded pretty
bad, but that was the province of another
committee and besides, the information was
secret. -
I finally wrote to "Doc" Morgan, chairman
of the full committe, and to Senator Ful-
bright. In those two long letters of July
18,I reviewed Colby's-April testimony and
argued that "the Congress and the Ameri-
can people have a right to know what was
done in our name in Chile ... I urge you to
turn this matter to the attention of the
Foreign Relations [Affairs] Committee for
a complete, - public investigation. . . . " - I
pointed out that the Forty Committee, the
interdepartmental body chaired by the Presi-
dent's national security adviser, had author-
ized the expenditure of about $11 million
between 1962 and 1973 to help block Allend@s
election and then to "destabilize" his gov-
ernment after he won.
"The agency's activities in Chile were
viewed as a prototype, or laboratory experi-
ment," I noted, "to test the techniques of
heavy financial involvement in efforts to dis-
credit and bring down a government." I gave
a general breakdown of the amounts author-
ized from 1962 through 1973, and explained
to the respective chairmen that since ac-
quiring this information I had tried to per-
suade well-positioned colleagues to pur-
sue the facts but that nothing seemed to
be happening. I said 1. was writing to them
as a last resort. Rep. Morgan did not answer
my letter. Sen. Fuibright replied, but not
very substantively, suggesting that the real
solution to the problem was the establish-
ment of a joint committee on oversight.
I felt ambivalent at this point as to how
I ought to proceed-I did want to stick with
the congressional process but could see no
obvious lines to follow. At any rate the mat-
ter was set aside In my preoccupation with
the summer's major event: the impeach-
ment proceedings of the House Judiciary
Committee. Then on September 6, Seymour
Hersh of The New York Times called me up
to inquire about the,context in which those
letters had been written, saying that he had
a copy of one of them. I told him I didn't
want the. issue raised in this manner and,
suspecting he may only have heard a rumor,
I said I wouldn't comment on the substance'
of the letter until I saw his story in print.
He assured me I could read it in the Times
on Sunday, two days later, which I did.
Shortly thereafter Mr. Nedzi asked me to
appear before his Armed Services subcommit-
tee to account for the egregious leak. I ex-
plained to the group, meeting against my
objection in closed session, that the Times
had not gotten the story from me or my of-
fice. But this was riot satisfactory, for the
point was raised that House Rule XI, Section
27(0) says that no evidence or testimony
taken in secret session may be released or
used in a "public session" without the con-
sent of the committee. A further issue was
the pledge I had to ;sign in order to read the
Chile material, which said that classified in-
formation would not be divulged to any un-
authorized person. Unauthorized persons,
the ensuing exchange made clear, included
other members of Congress.
This meeting did not maintain the high-
est level of discourse-one member compared
me to Benedict Arnold--but I tried to make
to the subcommittee a distinction between
genuine concern for the national security
and the facile use of that label to cover of-
ficial acts of duplicity and Illegality. Sug-
gesting this distinction was one of the prin-
cipal lessons of Vietnam and Watergate, I
maintained that the cover-up of U.S. actions
in Chile was yet another case of national se-
curity's fraudulent application. My remarks
did not set well with the subcommittee.
Nevertheless the storm seemed to pass.
The next day I wrote to Mr. Nedzi asking that
a transcript of the session we had just com-
pleted be made available to me when it was
prepared. The letter was never answered, and
I concluded that Armed Services had de-
cided to drop the matter. I went off to cam-
paign for reelection.
Meanwhile Mr. Hersh had turned over an-
other rock, and in December and January
wrote a series of stories alleging that the CIA
had conducted a program of massive surveil-
lance of American citizens in direct violation
of its charter. Although cynics might have
suggested that this only amounted to bu-
reaucratic overlap with the FBI, the revela-
tion jolted Congress in a way that harass-
ment and assassination of foreigners never
seemed- to-possibly because some reports
charged that the agency had snooped on sen-
ators and representatives. In any case hard
on the heels of the President's establishment
of the Rockefeller commission, the Senate
voted to set up a select committee to investi-
gate the full range of U.S. Intelligence ac-
tivities. I proposed formation of a similar
committee in the House, and after a month-
long minuet of maneuver and delay, we had
a select committee, too. I felt pretty good
about it until the Speaker announced his
choice for chairman-Lucien Nedzi.
Lucien Nedzi, the man *ho had sat on'his
hands as chairman of that permanent sub-
committee on intelligence since. 1971, who
had listened to the agency horror stories
about the bludgeoning of a democracy in
Latin America without so much as a murmur
to his colleagues-this was the man assigned
to conduct the special investigation that
would logically include his own lack of ac-
tion as a subject of inquiry. I wenttto the
floor of the House on the day his chairman-
ship became official and said I thought it was
an outrage. This Indiscretion, I was told later
by horrified staff and collegaues, was not like-
ly to advance my career-I had been given a
seat on the committee myself and would
therefore have to work with him-but I felt
it had to be said.
Other members of the select committee
later came to agree with me. The press really
had thescent by now, and it soon came out
that Nedzi, as chairman of that Armed Serv-
ices subcommittee, had been briefed on CIA
assassination plots more than a year before
and, once again, had done nothing. With this
news in hand, the select committee Demo-
crats rebelled, demanding a different chair-
man. But Speaker Albert balked at dealing
with the controversy, advising patience, and
the full House later gave Nedzi a resounding
vote of confidence by refusing to accept his
resignaiton. This left Nedzi in charge of a
committee with which he refused to work,
and the investigation came to a standstill.
A major reason for that vote and the sub-
sequent select committee stalemate is what
was happening back at Armed Services. Curi-
ously that committee's leadership decided to
take up the question of my access to its clas-
sified files-stemming from the Chile contro-
versy nine months before-at the very mo-
ment when Mr. Nedzi's failure as an overseer
of intelligence operations had come to na-
tional attention. On June 10, five days after
The New York Times broke the story of
Nedzi's inaction on assassination schemes
anti at the height of the controversy over his
remaining as Select Committee chairman,
House Armed Services met in an improperly
announced closed session and, without a -
quorum present, voted unanimously to bar
me from further access to its files. No notice
had been given me that this action was being
considered-in fact I didn't find out about it
until two days later. -
I won't dwell on the several ways in which
this action, reaffirmed at a later date by a
narrow majority of the total committee, was
Itself a violation of House rules, except to say _
that a committee cannot take away the privi-
leges a congressman holds under the rules of
the House as a whole-one such privilege be-
ing access to all committee records, regardless
of committee membership. A more telling
point is the action's glaring hypocrisy.
Columnist Jack Anderson, for example, was
quick tosay that he has received leaks of
classified information from many members of
House Armed Services on many occasions-"I
have no difficulty getting secrets out of that
committee when I want them," he said, There
are tolerable leaks and intolerable lea", ap-
parently, and the characterization depends
not on the strict dictates of the rules but on
the current interests of the committee lead-
ership or the Executive branch.
The Armed Services action was perfectly
timed to shift the focus of debate on the han-
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E 4036 CONGRESSIONAL RECORD - E., tensions of Remarks July' 22, 7'97 5
doing of classified material from Lucien Nedzi
to Michael Harrington. And at least over the
short term, the tactic seems to have worked.
Certainly it contributed to the outpouring of
affection for the harried select committee
chairman who just happened to have his res-
ignation considered by the House on the day
of the second Armed Services vote against
mne. From the swirl of publicity overanother
member's endangering of the nation's de-
fenses, Mr. Nedzi was borne up on wings of
angels. The vote was 290 to 64.
If one takes a step back from all of this,
what emerges is not a narrow controversy
over a chairmanship and a member's prerog-
atives. but a pattern of congressional ac-
quiescence In the seductive game of shared
secrets. It starts with the pleasant feeling of
being privy to things unknown to the or-
dinary citizen, but it works very much like
blackmail. The more you know about dubi-
ous secret operations, the more you are re-
sponsible for hiding, and the more you hide,
the tighter the grip of the State Department
or the CIA or the Pentagon. A large part of
Lucien. Nedzi's problem is that he -got to
know so many and such distasteful secrets
that he was effectively bound and gagged by
them.
There are only two ways to avoid that posi-
tion. You can stick your head In' the sand
and let the administration handle such
things, or you can challenge the terms of the
game itself, for the game is basically a fraud.
Certainly the United States needs a first-rate
intelligence gathering system, and maintain-
ing that system will require that we keep
some secrets. But theacceptance of a classi-
fication system gone wild-the mindless
rubber-stamping of every conceivable piece
of information with the national security
label-has obscured the distinction between
legitimate intelligence gathering and ma-
nipulation of people and institutions. It has
provided the cover for almost every kind of
crime and impropriety at home, and it has
sanctioned covert adventures overseas that
have done tremendous damage to our inter-
national standing.
After 10 years of Vietnam and the Water-
gate affair, the American people understand
this. They know that their leaders have lied
routinely, cloaking arrogance and bullying
and greed in terms of the national Interest.
They know that a secret agency that can
overthrow a foreign government is a threat
to democracy here. They know that a Con-
gress that will turn away or masquerade to
hide those kinds of actions can also dissem-
ble In its handling of just about anything
else. The Congress knows this, too, but re-
fuses to admit it. And that is why the House
investigation of US intelligence operations
will remain a touchy undertaking no matter
who is doing the investigating. In the back
of every member's mind is the uncomfortable
sense that the biggest scandal in the sordid
story of CIA wrongdoing is the failure of
effective oversight-the cover-up by the
Congress.
HANDS OFF POLICY
Henry Kissinger, June 1970: "I don't see
why we need to stand by and watch a coun-
try go Communist due to the irresponsibility
of its own people."
President Nixon, February 1971: , we
are prepared to have the kind of relationship
with the Chilean government that it is pre-
pared to have with us."
Charles Meyer, Assistant. Secretary of State
for Inter-American Affairs, March 1973:
"(The US government) financed no candi-
dates, no political parties before or after the
September 8 or September 4 (elections in
1970).'
Edward Korry, US Ambassador to Chile
(1987-1971), March 1973: "The United States
did not seek to pressure, subvert, influence
a single member of the Chilean Congress
(which confirmed Allende) 9' any time
in my entire four years."
Harry Sohlaudeman, Deputy t;hef of Mis-
sion, US Embassy in Chile (1969-1973), June
1974: ". . we had nothing to do with the
political destabilization in Chile, the US
government had nothing to do with it."
James Schlesinger, Secretary of Defense,
June 1974: . the United States govern-
ment, the Central Intelligence Agency, had
no role in the overthrow of th'.r regime in
Chile."
Henry Kissinger, September 1973: "The
CIA had nothing to do with the coup, to the
best of my knowledge and belle.." routinely see on television in their own
President Ford, September 1974: "There homes, but there is no reason for schools to
Is no doubt in my mind, our gove, nment had compound that error.
no involvement in any way whatsoever In the However, some serious questions about
coup itself." MACOS go beyond course content. Para-
HON. STEVEN D. SYMMS
OF IDAHO
IN THE HOUSE OF REPRESEN`i'ATI VES
Tuesday, July 22, 1975
Mr. SYMMS. Mr. Speaker, by now
everyone is fairly familiar with the con-
troversy surrounding the MACOS pro-
gram. The Monday, July 21, 1975, issue
of the Wall Street Journal contains an
editorial entitled "MACOS at.d Moral
Values." The editorial discusses, the ef-
forts of our colleague, Congressman JoEN
CONLAN of Arizona, in bringing to the
attention of the Congress the abuses of
the National Science Foundation in pro-
moting MACOS. I would at this '!me like
to extend my personal thanks and appre-
ciation to Congressman CONLAN for his
perserverance in this matter, and I would
now like to read into the RECORD, for the
benefit of my colleagues. the Wall Street
Journal editorial :
MACOS AND MORAL VALUE~
When the House of Representatives re.-
centiy appro"ed the appropriation for the Na-
tional Science Foundation, it prohibited NSF
from using funds to promote or market
school materials. How the Senate will vote
Is anybody's guess, but the House action
helps call attention to-a simmering educa-
tional dispute that has received far less
notice than it deserves.
NSF is involved because the federal agency
spent nearly $7 million to develop a con-
troversial fifth-grade social studies course
that has been adopted by some 1,700 schools
in 470 school districts nationwide. The course
is called "Man: A Course in Study," a harm-
less enough title, but one that sou ids like
fighting words to a growing number of con-
gressional and parental critics. MACOS, as it
is known, has aroused passions much Like the
recent West Virginia textbook dispute, but
the issue here is national rather than re-
gional.
The purpose of MACOS is to foster an ap-
preciation of alien custooLs canon, fifth
graders. Students examine several species of
animals plus the Netsilik Eskimos, a society
of hunters who live in the Canadian Arctic.
But critics say the course promotes cultural
relativism by adopting a morally neutral at-
titude in its many references to cannibalism,
adultery, bestiality, Infanticide, incest, wife-
swapping and gerontocide.
It's easy to brush aside that concern as
ethnocentric or ignorant, but it should not
be dismissed so lightly. Youngsters should
be taught that other civilizations have much
to admire, even so-called primitive peoples
whose very survival Is a miracle of adapta-
tion and resourcefulness. But the process of
education Is a process of drawing distinc-
tions; what is civilization, after all, if it is
not drawing moral judgments about can-
nibalism of infanticide?
Moreover, although the educational pro.,-
ess necessarily must confront students with
new experiences and break down existing
barriers to understanding, there is no ap-
parent excuse for subjecting pre-teenagers
to vivid films of Netsilik killing caribou and
seals, -then drinking their blood and eating
their eyeballs. Perhaps these scenes are no
worse than the scenes of violence youngsters
mount among them is to what lengths fed-
eral agencies should go to develop and pro-
mote curriculums and textbooks. As Robert
Merry outlined it in The National Observer,
the original MACOS grant was awarded in
1963 to the Education Development Center,
a nonprofit organization dedicated to Inno-
vation in education. In 1967, after receiving
$4.8 million in NSF grants, EDC's curriculum
was ready to market. But more than 50 text-
books publishers turned the course down be-
cause it was too controversial, too expensive
or inadequate.
So EDO sought more NSF funds to estab-
lish a "dissemination network" to publicize
MACOS. It established a five-week workshop
to familiarize academics, teachers, and school
administrators with the curriculum. Many
participants, some of whom received college
credits for attending, later applied for their
own NSF grants to conduct similar lobbying
activities. Other curriculums are reportedly
being funded in part by NSF, and a multi-
million dollar sequel to MACOS for high
schools was recently developed at taxpayer
expense.
MACOS officials say thatno school district
is forced to adopt the curriculum. But this
argument ignores the potential corrupting
influence of federal money. The course clear-
ly would never have gotten off the ground
without what Congressman John Conlan de-
scribes as "a sophisicated and aggressive pro-
motion and marketing network being orga-
nized at taxpayers' expense...
No wonder a growing number of Congress-
men are concerned about possible tax and
financial irregularities within the MACOS
program. They insist that the NSF peer re-
view system, used as the basis for the cur-
riculum grant awards, is rampant with
cronyism and federal grantsmanship. Still,
the more important question is why Wash-
ington is dabbling in curriculum matters
at all. And since It is, why is It reluctant
to affirm a preference for Western values,
products not - of ethnocentrism but of a
proud and honorable moral tradition?
EDUCATION FOR HANDICAPPED
CHILDREN
HON. EDWARD P. BEARD
OF RHODE ISLAND
IN THE HOUSE OF REPRESENTATIVE::
Tuesday, July 22, 1975
Mr. BEARD of Rhode Island. Mr.
Speaker, the Education for All Handi-
capped Children Act of 1975 is the kind
of legislation that makes me proud to be
here in the Congress. The Education and
Labor Committee, its-staff, and those who
helped to develop this bill are to be com-
plilriented.
It Is a tremendous advance for our
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housing, health care, education and income
redistribution.
But the more we and other nations have
trusted government to improve the quality
of life, the more we have of crime, laziness
and urban decay.
Government poverty programs end up
creating a "demand for poor people," and
the bureaucrats will. seek a supply if only
by raising the so-called "poverty level" by
another thousand dollars a year.
The press and information facilities have
promoted this preoccupation with social
problems.
Somebody said, "If.you are not worried
about social problems in America, you ought
to have your television set examined."
It has always been possible to make a ca-
reer out of righteous indignation-for poli-
ticians, journalists and preachers.
Now we are joined by the academics, and
the most active growth industries these days
are staffed by social workers, researchers,
sociologists-and student-agers expressing
their general discontents through demands
for social reform.
There are armies of such student-agers ac-
cepting unemployment pay this summer who
should be accepting some of the hundreds
of menial jobs that are going begging.
Or they'd ought to be out there in farmer
Ernst's berry field making taxpayers out of
themselves instead of leaving that work to
the nuns of St. Anthony's.
Britain is a horrible example of the direc-
tion in which the United States is headed. In
socialist Britain,, government provisions for
health, education and welfare have caused
these services to deteriorate while the nation
itself, after years of hemorrhaging red ink,
is dying i
F GETTING OUT THE TRUTH
HON. ANDREW MAGUIRE
OF NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
Mr. MAGUIRE. Mr. Speaker, in view
of the unfortunate recent history of
House efforts at oversight and investiga-
tion of U.S. Intelligence activities, 1 wish
to call to the attention of my colleagues
an important article in the current issue
of the New Republic by Representative
MICHAEL HARRINGTON.
The article follows:
CONGRESS CIA COVERUP-GETTING OUT THE
TRUTH
(By MICHAEL J. HARRINGTON)
If a President engages in a cover-up of gov-
ernment wrongdoing, as happened in the
Nixon White House, he can be challenged
through the process of impeachment, which
amounts to indictment and trial by the Con-
gress. But what do we do if the Congress
engages in a cover-up? Individual members
can be censured or expelled, of course, but
what if the cover-up is institutional, a prod-
uct of the most time-honored rules and
rituals?
This Is precisely the problem that con-
fronts us in the unfolding story of CIA and
other intelligence agency misdeeds. To be
sure presidential decisions and actions are
involved here too, but now we have a situa-
tion where members of Congress, in their
capacity as overseers of intelligency agency
operations, had knowledge of the mast bla-
tant crimes and improprieties and neverthe-
less did nothing. The instance I am most
familiar with concerns the CIA's accomplish-
ments on our- behalf in Chile in the early
1970s. The reactions to that record by those
who came to hear of it are a sobering illus-
ZcX..~J
i-tly 25, 1975
tration of the great congressional weakness- persuade well-positioned colleagues to pur-
the habitual reflex of avoidance and acqui- sue the facts but that nothing seemed to he
escence, masked by the illusion of activity. happening. I said I was writing to them as a
In April of last year, CIA Director William last resort. Rep. Morgan did not answer my
Co".by appeared at a closed session of Rep. letter. Sen. Fulbright replied, but not very
Lucien Nedzi's Armed Services subcommittee substantively, suggesting that the real solu-
on intelligence and described his agency's
long-term involvement in the political proc-
ess in Chile, where a bloody coup against
Salvador Allende Gossens in September 1973
had led to the installation of a military dic-
tatorship. Mr. Nedzi had called Colby at my
urging, so naturally I wanted. to know what
the director had to say. Not being a member
of Armed Services, I had to make special
arrangements to view the classified tran-
script in the committee offices-the privilege
of any House member-and after some ini-
tial difficulties with the staff there, I got my
first look at the material on June 4, what it
said left me appalled.
'the authorization of bribery, the fund-
ing of political factions and propaganda
campaigns, the fomenting of strikes and
demonstrations, a myriad Of destabilizing
actions-all directed against the duly elect-
ed leader of Latin America's most sophisti-
cated democracy-are now matters of pub-
lic record. Not only does that record indicate
violations of standing treaties, and other
affronts to Chilean sovereignty; it also shows
that President Nixon and Secretary Kissin-
ger had lied repeatedly to the American
people about our involvement there and that
some administration figures had apparently
perjured themselves on the matter before
certain committees of Congress.
Determined to get some congressional ac-
tion that would bring these things to light,
I approached Mr. Nedzi and asked him what
he planned to do with this information. He
replied with a philosophical shrug. He had
taken the testimony as I asked-what more
could one do? This information, after all,
was secret.
Knowing full well from my short-term ex-
peerience as a member of Armed Services
(ending in 1973) that Chairman F. Edward
Hebert would be even less inclined to pur-
sue the matter than Mr. Nedzi,.I spoke with
several subcommittee chairmen of House
Foreign Affairs, of which I am now a mem-
ber, and then with some of my staff. I also
sought the advice of Larry Stern of The
Washington Post, a personal friend who
clearly understood that the story was not
to be released. But the reactions of the sub-
committee chairmen and other Foreign Af-
fairs colleagues,, though generally sympa-
thetic in tone, were equally Lacking in com-
mitment. Yes the Chile story sounded pretty
bad, but that was the province of another
committee and besides, the information was
secret.
I finally wrote to "Doc" Morgan, chair-
man of the full committee, and to Senator
Fulbright. In those two long letters of July
18, I reviewed Colby's April testimony and
argued that "the Congress and the Ameri-
can people have a right to know what was
done in our name in Chile . I urge you
to turn this matter to the attention of the
Foreign Relations [Affairs] Committee for
a complete, public investigation. " I
pointed out that the Forty Committee, the
interdepartmental body chaired by the
President's national security adviser, had
authorized the expenditure of about $11
million between 1962 and 1973 to help block
Allende's election and then to "destabilize"
his government after he won.
"The agency's activities in Chile were
viewed as a prototype or laboratory experi-
ment," I noted "to test the techniques of
heavy financial involvement In efforts to,dis-
credit and bring down a government." I
gave a general breakdown of the amounts
authorized from 1962 through 1973, and ex-
plained to the respective chairmen that since
acquiring this information I had tried to
tion to the problem was the establishment
of a joint committee on oversight.
I felt ambivalent at this point as to how
I begin to proceed. I did want to stick with
the congressional process but could see no
obvious lines to follow. At any rate the mat-
ter was set aside in my preoccupation with
the summer's major event: the impeachment
proceedings of the House Judiciary Com-
mittee. Then on September 6, Seymour Hersh
of The New York Times called me up to in-
quire about the context in which those let-
ters had been written, saying that he had
a copy of one of them. I told him I didn't
want the issue raised in this manner and,
suspecting he may only have heard a rumor,
I said I wouldn't comment on the substance
of the letter until I saw his story in print.
He assured me I could read it in the Times
on Sunday, two days later, which I did.
Shortly thereafter Mr. Nedzi asked me to
appear before his Armed Services subcom-
mittee to account for the egregarious leak. I
explained to the group, meeting against my
objection in closed session, that the Times
had not gotten the story from me or my
office. But this was not satisfactory, for the
point was raised that House Rule XI, Section
27(o) says that no evidence or testimony
taken in secret session may be released or
used in a "public session" without the con-
sent of the committee. A further issue was
the pledge I had to sign in order to read the
Chile material, which said that classified
information would not be divulged to any
unauthorized person. Unauthorized persons,
the ensuing exchange made clear, included
other members of Congress.
This meeting did not maintain the highest
level of discourse-one member compared me
to Benedict Arnold-but I tried to make to
the subcommittee a distinction between gen-
uine concern for the national security and
the facile use of that label to cover official
acts of duplicity and illegality. Suggesting
this distinction was one of the principal les-
sons of Vietnam and Watergate, I maintained
that the cover-up of US actions in Chile was
yet another case of national security's fraud-
ulent application. My remarks did not set
well with the subcommittee.
Nevertheless the storm seemed to pass. The
next day I wrote to Mr. Nedzi'asking that a
transcript of the session we had just com-
pletes} be made available to me when it was
prepared. The letter was never answered, and
I concluded that Armed Services had decided
to drop the matter. I went off to campaign
for reelection.
Meanwhile Mr. Hersh had turned over an-
other rock, and in December and January
wrote a series of stories alleging that the
CIA had conducted a _ program of massive
surveillance of American citizens in direct
violation of its charter. Although cynics
might have suggested that this only
amounted to bureaucratic overlap with the
FBI, the revelation jolted Congress in a way
that harassment and assassination of for-
eigners never seemed to--possibly because
some reports charged that the agency had
snooped on senators and representatives. In
any case hard on the heels of the President's
establishment of the Rockefeller commission,
the Senate voted to set up a select committee
to investigate the full range of US intelli-
gence activities: I proposed formation of a
similar committee in the House, and - after
a month-long minuet of maneuver and de-
lay, we had a select committee, too. I -felt
pretty good about it until the Speaker an-
nounced his choice for chairman-Lucien
Nedzi.
Lucien Nedzi, the man who had sat on his
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J I-d y 25, 1975 CONGRESSIONAL RECORD -Extensions of Remarks E 4155
yromising songs were doled out according
to Motown Chief Berry Gordy's private caste
sy:=;tem; the Supremes, the Temptations, Mar-
viai Gaye, and Smokey Robinson and the
M:' racles had first choice. Such low-priority
graaups as the Spinners, the Four Tops and
thy? Pips received the leavings. 'We wanted to
do a gospel album long before Aretha," says
(il.c,dys, "and Berry saved the soft songs for
Diana Ross." But in 1967 a catchy soul rocker,
I atead It Through the Grapevine, sailed onto
the charts for the Pips. Two other singles had
ac"red for them by the time their Motown
co itract expired in 1973, and they quickly
In:>de a deal with Buddah Records.
lance then, Gladys and the Pips have sold
$1) million worth of records. They have ex-
tended their repertory from soul and blues
to Marvin Hamlisch and Burt Bacharach
so igs. Needless to say, Motown has unearthed
see eral dozen old recordings-and the Pips
have sued their former employer for $1.7
rnlion in disputed royalties.
BUTTER CUTTER
.;eanwhile, they gross between $30,000 and
$5{1,000 a concert, have an eight-week, con-
trect with the Las Vegas Hilton and spend
lucrative summer weeks playing theaters and
sunper clubs. Last fall Gladys, now 31, mar-
ried her second husband, Barry Hankerson,
an executive assistant to Detroit Mayor Cole-
man Young. He calls her by her middle name,
Maria-Gladys. after all, is a show business
celebrity. In the industry there is some gossip
that success has already created a wedge in
the Pips' solidarity. "When vocal groups are
huagry, you can't split 'em with an ax,"
Cousin William once remarked. "As soon as
success comes. all it takes is a butter cutter."
Gladys scoffs, maintaining that she is con-
tent to remain one of the boys. "I'm not
ifr.gd to stand alone professionally," she says.
?'T a imply don't want to."
the music of our country is some-
th i cig we are all proud of and the achieve-
ments of black Americans through the
blues and jazz, among other musical
forms, have been a singular part of our
musical tradition. The contribution to
our contemporary music of Gladys
Knight and the Pips is matched by few
other musical groups, and I venture to
predict that they will continue to excite
is with their unique sounds and sights.
MISS BLACK JOLIET WINS STATE
PAGEANT
HON. GEORGE M. O'BRIEN
OF ILLINOIS
I1 ( THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
i Ir. O'BRIEN. Mr. Speaker, I would
like to call my colleagues attention to
the outstanding achievement of Ms.
Alice Banks of my hometown, Joliet. Ms.
Banks, who holds the Miss Black Joliet
title, was recently awarded the State title
of Miss Black Illinois in Chicago. Mary
Alice, 19, is the daughter of Mr. and Mrs.
Ecrnoa Banks. She will go on to the
national competition on Aug. 30 and I
genuinely wish her the best of luck in
her endeavors. The people of Joliet, and
of Illinois, can be truly proud of this
iovly young lady.
[From the Joliet Herald News]
Vtrss BLACK JOLIET WINS STATE PAGEANT
Miss Black Joliet, Mary Alice Banks, 19,
won the state title of Miss Black Illinois
it a pageant Thursday in Chicago.
Miss Banks Is the daughter of Mr. and
Mrs. Ecmoa Banks of Joliet.
The new Miss Black Illinois won the Joliet
title May 17. She will compete in the na-
tional pageant Aug. 30.
Twelve contestants competed for the title.
First runnerup was Miss Black Evanston,
Lynda Wilkinson, 20. Pamela Cooper, 21, Miss
Black Aurora, was the second runnerup.
Miss Banks was sponsored by the Egwa
Pomaja Club and the Freedom Club of Joliet.
The state pageant was sponsored by Pretty
Girl, Inc. The national competition will be
sponsored by Fashionable Production.
HON. FRANK ANNUNZIO
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
Mr. ANNUNZIO. Mr. Speaker, I would
like to call to the attention of my col-
leagues that Christian Inden, executive
chef of the Conrad Hilton Hotel in Chi-
cago, has been nominated as U.S. team
captain for the Culinary Olympics which
will be held in Frankfurt, Germany in
1976.
Mr. Inden is certainly deserving of this
recognition for he has compiled a dis-
tinguished record in his chosen field. For
the last several years he has been re-
sponsible for planning and preparing a
special dinner for over 7,500 people who
have attended the annual Democratic
dinner honoring our distinguished
Mayor-Richard J. Daley. Mr. Inden has
also been selected to plan and to prepare
dinners honoring Japanese Emperor
Hirohito and the President of West Ger-
many, and he is the recipient of numer-
ous gold medals and other awards.
It is a pleasure for me to join many
of his friends in Chicago in extending
my congratulations on all of the culinary
honors that have been awarded to him.
A listing of these honors follows:
AWARDS RECE :^E1D-1973
National Grand Prize of the Culinary
Salon.
One Special Judge Award-Culinary Salon.
City of Chicago Award-signed by Mayor
Richard J. Daley.
Escomer Gold Medal-EscoRier Society.
SPECIAL DINNERS DESIGNED AND PREPARED
City of Chicago Dinner-honoring Mayor
Daley-7,000 persons in attendance.
Gold Plate Award Dinner-International
Food Manufacturers Association.
Annual Escoffier Dinner-Escoftier Society.
Dinner for Former President Nixon.
Various dinners for international, foreign
officials.
AWARDS RECEIVED-1974
National Grand Prize of Culinary Salon
(second consecutive year). Sponsored by
Kraft Food Corporation. Defeated the Ca-
nadian National Team.
Two Special Judge Awards.
President's Award-American Culinary
Federation.
Award of Distinction-International Food
Manufacturer's Association-on their Annual
Gold Plate Award Dinner.
Chef of the Year Award-Chef de Cuisine
of Chicago (Candidate of National Chef of
the . Year-1975).
SPECIAL DINNERS DESIGNED AND PREPARED
Annual Gold Plate Award Dinner-Inter-
national Food Manufacturer's Association.
Cit of Chicago Dinner-honoring Mayor
Richard J. Daley-7,500 persons in attend-
ance.
International Heads of State dinners.
AWARDS RECEIVED-1975
Na,:onal Grand Prize of Culinary Salon
(third consecutive year). Sponsored by
National Restaurant Association.
Goad Medal-Gold Certificate-Philan-
thropy of New York.
Escoffier Medal-State of New York.
Gold Medal-Chef de Cuisine Association
of Chicago.
Became fourth Chef of the United States
who was selected as an Honorable Member
of the Chef do Cuisine of Canada,
SPE. IAL DINNERS DESIGNED AND PREPARED
City of Chicago Dinner-honoring Mayor
Richard J. Daley-7,500 persons in attend-
ance.
An.r:ual Gold Plate Award Dinner-Inter-
natio:ial Food Manufacturer's Association.
FUTURE PLANNED DINNERS
Dilater for Japanese Emperor Hirohito.
Dinner for President of West Germany.
MEMBERSHIPS
American Culinary Federation.
Escoffler Society.
Chaine de Rottiseurs Association.
Chef de Cuisine Association.
Chef do Academy Association.
CULINARY DIPLOMAS HELD
German Certified Master Chef.
Institute Diploma of the American Hotel
and Motel Association.
SPECIAL NOMINATION
Nominated as United States Team Captain
for the Culinary.
Olympics, which will be held In Frank- .
fort, (.ermany-1976.
E FRAWBERRIES PICKED BY
KNEELING. NUNS
HON. JACK EDWARDS
OF ALABAMA
IN THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
Mr. EDWARDS of Alabama. Mr.
Speaker, a constituent of mine, Mr. Jex
R. Luce, has contacted me with an arti-
cle by Paul Harvey entitled "Straw-
berries Picked by Kneeling Nuns." I be-
lieve that my colleagues will benefit from
this article and I, therefore, include the
text of it in the CONGRESSIONAL RECORD
at this point:
STRAWBERRIES PICKED BY KNEELING NUNS
(By Paul Harvey)
It just makes me sick-to see those nuns
on their knees out there picking strawberries.
Not because they are nuns but because
they are doing more than their share while
100 of the local yokels are on welfare!
Near Farina, Ill., farmer Glen Ernst dis-
abled with an injured arm, had nobody to
pick his strawberry crop.
And though there are 10% so-called "un-
employed" in the area, nobody else wanted
to pick strawberries either.
So he called St. Anthony's Hospital and
the siscera from there went out into his fields
on their knees, harvesting his crop for their
hospitaal.
Usually, a nun on her knees would inspire
us; these should shame us!
You and I have been the victims of griev-
ance-mongers.
Theca are the people who believe that
government can and must engineer a socially
just society: that government must provide
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hands as chairman of that permanent sub-
committee on intelligence since 1971, who
had listened to the agency horror stories
about the bludgeoning of a democracy in
Latin America without so much as a mur-
mur to his colleagues-this was the man as-
signed to conduct the special investigation
that would logically include his own lack of
action as a subject of inquiry. I went to the
floor of the House on the day his chairman-
ship became official and said I thought it was
an outrage. This indiscretion, I was told later
by horrified staff and colleagues, was not
likely to advance my career-I had been
given a seat on the committee myself and
would therefore have to work with him-
but I felt it had to be said.
Other members of the select committee
later came to agree with me. The press really
had the scent by now, and it soon came out
that Nedzi, as chairman of that Armed Serv-
ices subcommittee, had been briefed on CIA
assassination plots more than a year before
and, once again, had done nothing. With this
news in hand, the select committee
Democrats rebelled, demanding a different
chairman. But Speaker Albert balked at deal-
ing with the controversy, advising patience,
and the full House later gave Nedzi a re-
sounding vote of confidence by refusing to
accept. his resignation, This left Nedzi in
charge of a committee with which he re-
fused to work, and the Investigation came to
a standstill.
A major reason for that vote and the sub-
sequent select committee stalemate is what
was happening back at Armed Services.
Curiously that committee's leadership de-
cided to take up the question of my access
to its classified files-stemming from the
Chile controversy nine months before-at
the very moment when Mr. Nedzi's failure as
an overseer of intelligence 'operations had
come to national attention..On June 10, five
days after The New York Times broke the
story of Nedzi's inaction on assassination
schemes and at the height of the controversy
over his remaining as Select Committee
chairman, House Armed Services met in an
improperly announced closed session and,
without a quorum present, voted unani-
mously to bar me from further access to its
files. No notice had been given me that this
action was being considered-in fact I didn't
find out about it until two days later.
I won't dwell on the several ways in which
this action, reaffirmed at a later date by a
narrow majority of the total committee, was
itself a violation of House rules, except to
say that a committee cannot take away the
privileges a congressman holds under the
rules of the House as a whole-one such
privilege being access to all committee rec-
ords, regardless of committee membership.
A more telling point is the action's glaring
hypocrisy. -
Columnist Jack Anderson, for example,
was quick to say that he has received leaks
of classified information from many mem-
bers of House Armed Services on many oc-
casions-"I have no difficulty getting secrets
out of that committee when I want them,"
he said. There are tolerable leaks and intol-
erable leaks, apparently, and the characteri-
zation depends not on the strict dictates of
the rules but on the current interests of the
committee leadership or the Executive
branch.
The Armed Services action was perfectly
timed to shift the focus of debate on the
handling of classified material from Lucien
Nedzi to Michael Harrington. And at least
over the short term, the tactic seems to have
worked. Certainly it contributed to the out-
pouring of affection for the harried select
committee chairman who just happened to
have his resignation considered by the House
on the day of the second Armed Services vote
against me. From the swirl of publicity over
another member's endangering of the na-
tion's defenses, Mr. Nedzi was borne up on
wings of angels. The vote was 290 to 64.
If one takes a step back from all of this,
what emerges is not a narrow controversy
over a chairmanship and a member's preroga-
tives, but a pattern of congressional ac-
quiescence in the seductive game of shared
secrets. It starts with the pleasant feeling
of being privy to things unknown to the or-
dinary citizen, but it works very much like
blackmail. The more you know about dubious
secret operations, the more you are respon-
sible for hiding, and the more you hide, the
tighter the grip of the State Department
or the CIA or the Pentagon. A large part of
Lucien Nedzi's problem is that he got to
know so many and such distasteful secrets
that he was effectively bound and gagged by
them.
There are only two ways to avoid that posi-
tion. You can stick your head In the sand
and let the administration handle such
things, or you can Challenge the terms of
the game itself, for the game is basically a
fraud. Certainly the United States needs a
first-rate intelligence gathering system, and
maintaining that system will require that we
keep some secrets. But the acceptance of a
classification system gone wild-the mind-
less rubber-stamping of every conceivable
piece of information with the national secu-
rity label-has obscured the distinction be-
tween legitimate intelligence gathering and
manipulation of people and institutions. It
has provided the cover for almost every kind
of crime and. Impropriety at home, and it has
sanctioned covert adventures overseas that
have done tremendous damage to our inter-
national standing.
After 10 years of Vietnam and the Water-
gate affair, the American people understand
this. They know that their leaders have lied
routinely, cloaking arrogance and bullying
and greed irk terms of the national interest.
They know that a secret agency that can
overthrow a foreign government is a threat
to democracy here. They know that a Con-
gress that will turn away or masquerade to
hide those kinds of actions can also dis-
semble in Its handling of just about anything
else. The Congress knows this, too, but re-
fuses to admit it. And that is why the House
investigation of US intelligence operations
will remain a touchy undertaking no matter
who Is doing the investigating. in the back
of every member's mind is the uncomfortable
sense that the biggest scandal in the sor-
did story of CIA wrongdoing is the failure of
effective oversight-the cover-up by the
Congress.
HON. EDWARD I. KOCH
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
Mr. KOCH. Mr. Speaker, together
with 111 House cosponsors, I have intro-
duced H.R. 4772 and H.R. 4774, the Na-
tional Home Health Care Act of 1975.
The bill has been given equally strong
support in the Senate where it has been
introduced as S. 1163 by Senators FRANK
Moss and FRANK CHURCH, respective
chairmen of the Senate Subcommittee
on Long Term Care and Committee on
Aging, HUGH SCOTT, Senate minority
leader, and. Senators WILLIAMS, DOM-
ENICI, and TUNNEY.
To discuss the need for home health
care and the public support this pro-
E 4157
posal is receiving, it is my intention to
place statements in the RECORD several
times a week by experts and lay persons
commenting on the legislation.
Today I am submitting as the 20th
statement in this series excerpts from
two Blue Cross pamphlets as well as a
letter from the county executive of Erie
County, N.Y., noting the county's ex-
periences:
MANUAL-BLUE CROSS OF GREATER NEW
YORK COORDINATED HOME CARE
SECTION I-COORDINATED HOME CARE: OBJEC-
TIVES, PURPOSE AND SCOPE OF PRROGAM
A coordinated home care program is a
specific, organized application of multiple
health care resources which achieve patient
care in the home by assuring continuity
from one setting to another, one visit to
another and one service to another. With
professional nurse/physician management of
patient care and a centralized control mech-
anism, responsibility is fixed for prompt and
appropriate:
Therapeutic Intervention based on goal
oriented evaluation;
Delivery of services based on the current
status of the patient;
Termination of services based on the indi-
vidualized plan of care.
We believe that the effective delivery of
a Coordinated Home Care Program presup-
poses that those receiving the service can
progress more uneventfully if they are
treated within the confines of their own
familiar surroundings; surroundings into
which family and friends may enter more
naturally and surroundings over which the
patient himself can exercise some control.
Coordinated Home Care as a method of
health care delivery challenges staff mem-
bers who' must maintain a constant aware-
ness of all the components of any one' pa-
tient's plan of care. This professional aware-
ness carries with it the responsibility for
anticipating, evaluating and planning to
meet the needs of the patient in his home.
When this is accomplished, the Coordinated
Home Care Program becomes a modality to
provide each patient regardless of payment
mechanisms with an integrated delivery sys-
tem responding to his individualized needs.
The program, then, is designed to improve
patient care by planning for a therapeutic
transition from the hospital to the home
environment, and providing coordinated
health services to the patient in that home
environment. This planned systematic con-
tinuity of services can serve to:
Activate appropriate treatment and ac-
tion through a relay system centrally
managed;
Minimize fragmentation of the delivery
of health services;
Expedite recovery from illness;
Shorten hospital stays;
Improve the use of hospital and commu-
nity nursing facilities;
Decrease the need for new hospital beds;
Reduce the costs of health care; and
Provide for centralization of patient rec-
ords with interdisciplinary input available
at one source.
BLUE CROSS PLAN INNOVATIONS AIM AT
KEEPING PEOPLE OUT OF HOSPITALS
Traditionally, Blue Cross benefits have
been thought of as covering only the cost of
a hospital stay, and they still do to a large
extent. However, in recent years, the na-
tion's 73 Blue Cross Plans have adopted a
series of innovative programs that pay many
of the health care bills of their 80 million
subscribers even though they do not occupy
a costly hospital bed when ill.
The programs, aimed at shortening hospi-
tal stays or keeping people out of hospitals
in the first place, include:
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CONGRESSIONAL RECORD- Extensions of Remarks July
ROME CARE
With estimates that 75,000 (Blue Cross)
patients across the country-or at least six
per cent of those in hospitals on a given
day-could benefit from care at home with
a savings of up to 25 per cent, or even more,
home care is also spreading. Today, home
care coverage is available to 42 million sub-
scribers at 56 Blue Cross Plans, compared
with 25 million subscribers at 32 Plans five
years ago.
Interest in home care is also growing be-
cause many convalescing or chronically-ill
patients not only feel more comfortable at
home but find that the quality of medical
care at home can be as highas that avail-
able in the hospital.
Services and facilities available through
home care include hospital beds, overbed and
tilt tables, wheel chairs, walkerettes, medi-
cations, x-ray and lab tests, visiting nurses,
doctor visits, homemakers (to help with chil-
dren and family chores as well as to care
for the patient), physicial, speech or occu-
pational therapy, even the attention of a
psychiatrist or social worker. If necessary,
ambulances are also used to take the patient
to the hospital for detailed checkups, new
casts or for other services that cannot be
performed easily, if at all, in the home.
What sort of savings are possible under
3iome care? In Rochester, N.Y., for example,
the average daily bill for the 220 patients a
day being handled under the area's home
care program, is only $18, as opposed to the
$116 a day it would cost to take care of
them in the hospital-a savings of 83 per
cent!
In New York City, where some 51 hospitals
are now operating home care programs, a
Blue CrossPlan study found that the hospi-
tal stays of 10,000 patients were shortened
by about 226,000 days, reducing cost of Ill-
ness by $7.2 million.
Another estimate Indicated that hospital
construction costs of $1 billion could be
saved over a twelve-year period with the aid
of effective home care programs, with a re-
sultant tremendous saving in hospital bills
as well.
COUNTY OF ERIE,
July 15,1975.
Hon. EDWARD I. KOCH,
Member of Congress,
House of Representatives,
Washington, D.C.
DEAR REPRESENTATIVE KOCH: I am writing
with respect to the National Home Health
Care Act of 1975 which you are sponsoring
in the Houseof Representatives.
Erie County has long been concerned about
inappropriate utilization of facilities for the
elderly and inappropiate placement of aged
citizens in higher levels of care than is indi-
cated by medical or health needs. We have
seen that placing a person in a hospital or a
nursing home who might more appropriately
be placed in a domiciliary or semi-independ-
ent setting, can be demoralizing to the Indi-
vidual as well as costly to the taxpayer.
I, therefore, support the effort in your
legislation to allow medicaid and medicare
payments to hospitals and nursing homes
for providing home health care.
I feel that Erie County's experience in this
area may be of interest at such a time as
hearings are conducted on this legislation
and I would be happy to provide testimony
in this regard at such time as hearings may
be held.
Very truly yours,
EDWARD V. REGAN,
County Executive-
HON. JAMES J. HOWARD
or NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
Friday, July 25, 1975
Mr. HOWARD. Mr. Speaker, ordinar-
ily when we get a piece of legislation
back from conference committee we
pass it pretty much as a matter of rou-
tine; at this stage of the game the House
has already expressed its will and pre -
sumably the compromise version worked
out with conferees from the other bod::-
does not differ materially from the origi-
nal House measure.
I rise today to put Members on notice
that this emphatically will not be th
case when we take up the conference
report on H.R. 3130. On the contrary,
as a result of an amendment by the Sen -
ate Committee on Interior and Insular
Affairs, substantially incorporated by the
conference committee, the thrust of this
legislation has been turned around 18+7
degrees.
Rather than counter a Federal cow
decision jeopardizing projects in three
States, it would now perpetuate the prob-
lem and extend it nationwide. It als 3
would leave several Federal programs---
housing and community development,
urban mass transportation, and airport
development-subject to court challenge
on purely procedural grounds never Ir.-
tended by the Congress.
Moreover, the conference version as
being brought before this body in the
guise of a measure equivalent to the
original House-passed version.
This is a grave assertion, Mr. Speake_e,
but one I am prepared to document. In
the process, let me review briefly the in-
credible sequence of circumstances which
placed us in the position we are in toda::,
where a vote for the conference report is
a vote against the bill.
Members will recall that this legisle.-
tion was initiated in response to a FeCe-
eral court of appeals ruling in the second
.circuit, covering Vermont, Connecticut,
and New York, overturning traditional
doctrine with respect to delegation of
preparation of environmental impact
statements on highway projects to State
agencies responsible for their planning,
design, and construction.
It was intended to clarify or restate
prevailing practice, reflected in guide-
lines of the Council on Environmental
Quality and the Federal Highway Ad-
ministration, and upheld in Federal
courts of appeals in five circuits, permi.-
ting delegation of this function to State
agencies subject to guidance, participa-
tion, review, analysis, and final adoption
by the responsible Federal agency.
This was precisely the purpose of H,R.
3130 as reported by the Committee on
Merchant Marine and Fisheries-Report
No. 94-144-and passed by vote of 370--5
on April 21. I earnestly urge Members to
review the debate on this measure, and
particularly the legislative history devel-
oped by the floor manager, Mr. LEGGETT,
on pages H3001-H3008 of that date. And
I urge you to compare this with the ver-
sion currently before the House.
Mr. LEGGETT, chairman of the Sub-
committee on Fisheries and Wildlife Con-
servation and Energy, with NEPA over-
sight responsibilities, agreed that the
second circuit had overturned NEPA
by requiring "that the report itself must
be prepared by the Federal Highway Ad-
ministrator."
Accordingly, he spoke of the need for
"statutory clarification" of NEPA, "re-
statement" of its intent, without "sub-
stantive changes in this act."
Stated Mr. LEGGETT at the time:
The mere participation of a State agency
or ofiiciai in the preparation of an environ-
mental impact statement where the re-
sponsible Federal official has retained super-
visory responsibility and performs his own
evaluation is not violative of the intent of
NEPA. This is the law, and we intend that
it shall remain the law. (Emphasis added.)
It is important to recall that my
friends on the Committee on Merchant
Marine and-Fisheries, and its NEPA sub-
committee, were not disposed to move
until the Committee on Public Works and
Transportation had initiated the first
legislative remedy. This bill, H.R. 3787,
followed the quick and clean route of
enacting a congressional determination
that the requirements of NEPA had been
met in the three States of the second cir-
cuit, without running the risk of opening
up NEPA to amendment.
The sponsors of H.R. 3130 argued,
however, that there was need for a bill
nationwide in application, and covering
programs other than highways. For ex-
ample, the distinguished Chairman of
the full Committee on Merchant Marine
and Fisheries, the gentlewoman from
Missouri, Mrs. SULLIVAN, said of our bill,
H.R. 3787:
Enactment of their bill would not provide
an answer if this same issue were to arise
in a context other than Federal-aid high-
way projects. H.E. 3130 would.
We on the Committee on Public Works
and Transportation took the position
that both bills were consistent and com-
patible, and saw merit in uniform ap-
plication of EIS delegation nation-wide
and to programs other than highways.
Mr. Speaker, we were both right in
certain respects: First. About the time
H.R. 3130 passed the House-and H.R.
3787 also did by a vote of 275-58-the
Seventh Circuit Court rendered a deci-
sion going even beyond that of the Sec-
ond Circuit in distorting the intent of
NEPA.
Second. The abomination to result
from the opening up of NEPA to amend-
ment will be before us shortly.
The doctrine of remote State impact
was introduced by amendment in the
other body, establishing a new require-
ment for independent Federal analysis
of interstate impacts. Consider- the fol-
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Solution is achievable, mostly through re-
vision of the tax laws: Provide inducement
for people to save, say a lower tax on inter-
est payments; liberalize depreciation allow-
ances on machines and equipment; give
preferential tax treatment to corporate earn-
ings retained for investment and include the
service industries; bring the capital gains
tax provisions at least to a par with other
countries; determine one fiscal and mone-,
tary policy and stick with it; do away with
controls that restrict or impede the free
market economy.
And, lastly, the Readers Digest of.
June 1975, in an article entitled, "What
Ever Happened to the Nickel Candy
Bar?", gave several examples of the ways
in which capital relate to jobs:
Let's first consider two basic ways to
lower the price of a product. One way is to
cheapen the product, lower its quality. But
this is a fatal device in a free market-con-
sumers catch on quickly. The other way is
to maintain the quality but out the cost of
manufacture. If the product is soup cans,
for instance, it means producing more and
better soup cans, for the time and labor
spent. That's what's called improved produc-
tivity.
Just ponder, for example, what happens
when a mix of technology, planning and
worker motivation spells high productivity.
Major manufacturers of hand-held power
tools in Germany, Japan and England have
not been able to penetrate the American
market because high-quality American-made
hand tools are competitively lower in price.
One of the major forces behind this situation
is the Black & Decker Manufacturing Co., of
Towson, Md.
The company secret? Better productivity.
In part, this comes from the wise investment
of funds in new machines and advanced
research.
While such improved productivity has paid
off in increased sales and profits, it has also
paid off for employees. The company payroll
in 1958 was $14.5 million for 3,800 employees.
Last year's payroll was $165.2 million for
20,700 employees.
And look at the payoff for the consumer:
In 1958, Black & Decker's basic electric drill
for do-it-yourselfers cost $18.95. Now it costs
$10.99. A standard jigsaw that sold for $44.50
in 1958 now costs $11.99. And remember,
these prices changes occurred during a 16-
year period which saw the U.S. Consumer
Price Index rise 75.2 percent.
But the productivity payoff can also mean
a lot more than new jobs and higher pay.
Sometimes it spells survival.
And, the Indianapolis Star of July 1:L,
made this specific endorsement capital
formation measures, including the Jobs
Creation Act:
As Congress takes up the problem of tax
reform this week, there is reason to hope
that an inequitable and impractical feature
of our Federal tax system-the corporate in-
come tax-will get a thorough review.
An income tax is paid on money earned by
the corporation. That money is taxed again
when it is distributed to the corporation's
owners in the form of dividends, which are
regarded as personal income. It is comparable
to a worker's wages being taxed when he
earns them, at the end of each working day,
and again when he collects them on payday.
Much of the public has been led to believe
that the corporate income tax reduces bur-
dens of the individual taxpayer. Treasury
Secretary William Simon put it bluntly to
the House Ways and Means Committee: "It
is naive to think that corporations pay
taxes."
The fact is that corporate taxes make tax
collectors, not taxpayers, out of corporations.
The corporation's tax bill is converted into
higher prices for its customers, lower pay for
its employees, fewer jobs for the community
and lower dividends for its stockholders.
The impracticality of the corporate income
tax is especially salient at the present time
when government is supposedly doing all it
can to reduce unemployment. Billions are
being appropriated to create makework jobs
which merely shift work from the private to
the public sector.
It would be preferable to remove the ob-
stacles to expansion and investment so that
Americans can return to real jobs that pro-
duce goods and services. A drastic reduction
in the corporation income tax would help
achieve this. Its abolition would be even
better.
While a politician may find it useful to
cultivate the myth that "the little guy" is
helped by socking It to "big business," it just
isn't so and we are pleased to find a politi-
cian with the wit and courage to say so.
Rep. Jack Kemp, R-N.Y., has sponsored a
bill which eliminates the double taxation of
corporate income and achieves other reforms
to encourage capital formation. The bill is
needed and deserves the support of all par-
ties interested in economic recovery.
Mr. Speaker, the people are remem-
bering that private capital at work
means people at work; that private capi-
tal not at work means people not at work.
HON. HERMAN BADILLO
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Monday, July 28, 1975
Mi'. BADILLO. Mr. Speaker, it is a
privilege to insert in the RECORD an ar-
ticle authored by our colleague the Hon-
orable MICHAEL HARRINGTON. The article
appeared in the July 26, 1975, issue of the
New Republic magazine. I would like
to express my continued support for
Mr. HARRINGTON, and I hope that this
article helps clarify his position.
CONGRESS CIA COVERUP: GETTING OuT THE
TRUTH
(By MICHAEL J. HARRINGTON)
(NOTE.-Mr. Harrington is the Democratic
congressman from Massachusettes' sixth dis-
trict.)
If a President engages in a cover-up of
government wrongdoing, as happened in the
Nixon White House, he can be challenged
through the process of impeachment, which
amounts to indictment and trial by the Con-
gress, But what do we do if the Congress
engages in a cover-up? Individual members
can be censured or. expelled, of course, but
what if the cover-up is institutional, a prod-
uct of the most time-honored rules and
rituals?
This is precisely the problem that con-
fronts us In the unfolding story of CIA and
other intelligence agency misdeeds. To be
sure presidential decisions and actions are
involved here too, but now we have a situa-
tion where members of Congress, in their
capacity as overseers of intelligence agency
operations, had knowledge of the most bla-
tant crimes and improprieties and never-
theless did nothing. The Instance I am
most familiar with concerns the CIA's ac-
complishments on our behalf in Chile in
the early 1970s. The reactions to that rec-
ord by those who came to hear of it are a
sobering illustration of the great congres-
sional weakness--the habitual reflex of
avoidance and acquiescence, masked by the
illusion of activity.
In April of last year, CIA Director Wil-
liam Colby appeared at a closed session of
Rep. Lucien Nedzi's Armed Services sub-
committee on intelligence , and described
his agency's long-term involvement in the
political process in Chile, where a bloody
coup against Salvador Allende Gossens in
September 1973 had led to the installation
of a military dictatorship. Mr. Nedzi had
called Colby in at my urging, so naturally
I wanted to know what the director had to
say. Not being a member of Armed Serv-
ices, I had to make special arrangements to
view the classified transcript in the com-
mittee offices-the privilege of any House
member-and after some initial difficulties
with the staff there, I got my first look at
the material on June 4. What it said left
me appalled.
The authorization of bribery, the fund-
ing of political factions and propaganda
campaigns, the fomenting of strikes and
demonstrations, a myriad of destabilizing
actions-all directed against the duly elec-
ted leader of Latin America's most sophis-
ticated democracy-are now matters of pub-
lic record. Not only does that record indi-
cate violations of standing treaties and
other affronts to Chilean sovereignty; it
also shows that President Nixon and Sec-
retary Kissinger had lied repeatedly to the
American people about our involvement
there and that some administration figures
had apparently perjured themselves on the
matter before certain committees of Con-
gress.
Determined to get some congressional ac-
tion that would bring these things to light,
I approached Mr. Nedzi and asked him what
he planned to do with this information. He
replied with a philosophical shrug. He has
taken the testimony as I asked-What more
could one do? This informaion, after all,
was secret.
Knowing full well from my short-term ex-
perience as a member of Armed Services
(ending in 1973) that Chairman F. Edward
Hebert would be even less inclined to pur-
sue the matter than Mr. Nedzi, I spoke with
several subcommittee chairmen of House
Foreign Affairs, of which I am now a member,
and then with some of my staff. I also sought
the advice of Larry Stern of The Washington
Post, a personal friend who clearly under-
stood that the story was not to be released.
But the reactions of the subcommittee chair-
men and other Foreign Affairs colleagues,
though generally sympathetic in tone, were
equally lacking in commitment. Yes the
Chile story sounded pretty bad, but that was
the province of another committee and be-
sides, the information was secret.
I finally wrote to "Doc" Morgan, chairman
of the full committee, and to Senator Ful-
bright. In those two long letters of July 18, I
reviewed Colby's April testimony and argued
that "the Congress and the American people
have a right to know what was done in our
name in Chile . I urge you to turn this
matter to the attention of the Foreign Rela-
tions [Affairs] Committee for a complete,
public investigation...." I pointed out that
the Forty Committee, the interdepartmental
body chaired by the President's national
security adviser, had authorized the expendi-
ture of about $11 million between 1962 and
1973 to help block Allende's election and
then to "destabilize" his government after
he won.
"The agency's activities in Chile were
viewed as a prototype, or laboratory experi-
ment," I noted, "to test the techniques of
heavy financial involvement in efforts to dis-
credit and bring down a government." I gave
a general breakdown of the amounts author-
ized from 1962 through 1973, and explained
to the respective chairmen that. since ac-
quiring this information I had tried to per-
suade well-positioned colleagues to pursue
the facts but that nothing seemed to be
happening. I said I was writing to them as a
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J S
9 xtensions o emur
SELDOM USED
-is a practical matter, however, the Fleet-
wood jury was-told, the appeal process is sel-
dom used by grain owners or ship companies
because the government appeal inspectors
are known to be tougher than the agency
inspectors.
Gilbert Vorhoff, president of the New Or-
leans Board of Trade, defended the board's
inspection procedures and said a new-man
has been employed to supervise the inspec-
tors as a result of the cases. Two of the
indicted men worked for the Board of Trade,
while others in New Orleans worked for other
inspection agencies.
Vorhoff acknowledged that the Board of
Trade's main function is to promote trade
and commerce, and that its members and di-
rectors include officials of grain and shipping
firms. But he Insisted that there is "absolutely
and unequivocally not a conflict of interest"
in such an organization's also being aregula-
tory agency for the inspection of ships and
grain.
DANK OFFICIAL
Vorhoff is a vice president of Hibernia Na-
i,i.onal Bank and specializes in international
finance.
U.S. Attorney Gallinghouse said that since
the indictments were issued both the Board
of Trade and the Agriculture Department
have taken steps to improve supervision of
the inspectors and to make spot checks on
their activities.
In Houston, the Houston Merchants Ex-
change conducts grain and ship inspections
for four exhort elevators.
Roy T. James, secretary and general man-
ager of the exchange- said the organization
Is owned by 23 stockholders from the major
grain firms, shipping companies, banks and
other businesses.
He said he expects his Inspectors to be ex-
onerated and to be "back at work before
too long."
Harlan L. Ryan, Agriculture Department
supervisor for the grain division office in
New Orleans, said his staff will be increased
from 27 to about 50 in order to provide better
control over the approximately 125 inspec-
tors employed by the five inspection agencies
in the area.
Agriculture Department supervision teams
are doing more checks on ship-hold inspec-
tions, and new guidelines are being issued
to the inspection agencies, Ryan said.
PUBLIC OPINION IN SUPPORT OF
TAX REFORMS DESIGNED TO
FOSTER ACCELERATED CAPITAL
FORMATION IN THE INTEREST
OF JOBS
HON. JACK F. KEMP
OF NEW YORK
,'N THE HOUSE OF REPRESENTATIVES
Monday, July 28, 1975
Mr. KEMP. Mr. Speaker, public opin-
ion is growing increasingly in support
of tax reforms designed to foster ac-
celerated capital formation.
The people know the relationship be-
tween capital and jobs. They know that
assuring adequate capital for invest-
ment in new plant and equipment is the
key to guaranteeing the existence of
current jobs and to encouraging the
formation of new ones.
The House Committee on Ways and
Means now has before it major legis-
lation on tax reform, much of it de-
signed to remove existing impediments
to savings and investment now found
in our Federal tax laws.
One of those measures is the Jobs
Creation Act of 1975, a bill which I
introduced in March and a bill which,
after several reintroductions and per-
fecting amendments, now has over 80
cosponsors in the House. That bill, H.R.
8053, is designed to accelerate the for-
mation of capital needed to assure
higher productivity and more jobs. An
extensive discussion of capital forma-
tion in general and this bill in partic-
ular is found in the RECORD of today
during the special orders, and I call
it to the attention ofall those concerned
with the economic situation in our
country today.
Support is indeed growing for enact-
ment of capital formation measures.
That support is being reflected more
every day in the editorials and press
comments of the Nation's major publi-
cations.
I think it is important we perceive
accurately the public posture on this
issue. It is one in support of greater
capital formation, and the items which
follow support this conclusion.
On July 1, the Buffalo Evening News,
culminated a 3-day series of lead edi-
torials on capital formation in these
words:
The federal government cannot by itself
create the capital investment required to
keep our American economy robust and
grow ,pg. But by mounting a determined
cifor# against inflation and by carefully
modifying tax and other laws that influ-
ence the investment climate, it can and
assuredly should help stimulate the forma-
tion of private capital so essential to our
standard of living.
No society can live indefinitely beyond
Its means, consume more than it produces,
or prosper without thoughtful planning
alert to promising new directions.
Congress must reexamine the tax laws,
as in fact the House Ways & Means Com-
mittee` has begun to do, looking toward
strengthening several principles for stimu-
lating future investment. -
First, the tax laws should seek both to
enlarge the investment pool and guide it
in high-priority directions. Not only does
this mean devising fresh incentives for
investments in essential areas but it means
closing loopholes which merely shelter
wasteful or less useful investment.
Second, the lax laws should do less, over
the long run, to encourage borrowing and
more to encourage savings and investment.
A third principle that ought to' govern
tax-law revisions is the desirability of in-
volving more individual Americans in the
ownership of equity shares.
So there is no shortage of ideas in set-
ting a fresh course to promote America's
real growth in living standards. The tough-
est chore will be to sort out those ideas in a
balanced, coherent program that is effective
as well as fair to all elements in our society.
This can flow only from a recognition of
the problem, an updating of public atti-
tudes and, above all, a change in the politi-
cal climate that has for too long treated
profits as a rip-off, savings as slightly anti-
social, and the spending of every cent of
income as the highest form of economic
pa iriotism.
On June 22, one of the Nation's larg-
est newspapers, the Los Angeles Times,
had editorialized on this issue in these
words :
The need to -assure adequate capital for-
mation in the decade ahead must be a para-
mount consideration in the tax revision
legislation which Congress is expected to en-
act late this year or early In 1976.
The United States reinvests a far smaller
there of its national income in new plant
tad equipment than any other industralized
country In the world. Administration econ-
cmists, backed by most of their brethren
outside government, -say it is no coincidence
that this country's advantage In worker pro-
ciuctivity has been slowly but surely eroding.
Efforts also should be made to broaden the
base from which Investment-feeding savings
a 'e drawn.
There may be a temptation for Congress
to Concentrate on soak-the-rich closing of
tax loopholes and new tax cuts for low-
and middle-Income citizens without doing
anything real about the need to encourage
capital formation. That would be a distinct
disservice to Americans of all income
brakets."
That Los Angeles Times editorial fol-
lowed the nationwide syndication of
Nick Thimmesch's column through the
Los Angeles Times Syndicate on June 12,
entitled, "A Reappraisal of Big Busi-
ness":
Profits, as not enough people know, are
necessary for Investment-expansion and
modernization of productive capacity. In re-
cent years, despite headlines about high
(-gross) profits, the basic manufacturing in-
dustries suffered a great decline in net
profits, and the earnings slide further in the
current recession.
The unhappy result is that the United
States is slipping way behind the rest of the
ibidustralized world in real economic growth.
Even with population size leveling off, 10
nullion new jobs must be created in the
next five years in the United States. It takes
up to $40,000 in capital to create even one
lob. The best estimate is that in the next
I() years there will be $2.6 trillion available
for such Investment but that $4.1 trillion
is needed.
Curiously enough, an increasing number
of labor leaders, the men who learn eco-
n+xmics by studying the industries they are
trying to extract raises and benefits from,
are sharing the concern of executives about
il_dustry's ability to expand.
If there is not improvement In the profit-
irvestment situation soon, many of those
critics who helped damage the once-marvel-
o133 engine will be standing there screaming
at it for not providing all the goodies it
did in yesteryear.
The Boston Herald Advertiser of
April 13, in an article entitled "Low U.S.
Capital May Affect Jobs," commented
an this subject and how it relates to
jobs:
The U.S. Is running low on capital. At
st,.ke is your job.
1-s percentage of its economy, America has
less growth capital available than almost
all other industrialized countries. Chase Man-
hettan Bank, the nation's third largest, esti-
mates that we are under-investing in our
economy by $400 million each day, and will
-continue to do so for the next 10 years un-
let-s profound changes are made.
If those changes aren't made-in atti-
tudes and in laws-,the U.S. will be a second-
race country, or lower, within a decade, as
Its capital formation declines.
What is this "capital information" that in
America has slowed to a trickle? It is the
sa-lings of individuals. It is also that per-
ticn of corporate earnings which becomes
available for re-investment after paving all
co-ts. Those are the only sources of capital
and if either the ability or incentive to save
is +nhibited, there is less capital formation.
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July 28, 1975 CONGRESSIONAL R~ &RA- t~ rPs `~` ~g ~~
last resort. Rep. Morgan did not answer my about the bludgeoning of P. democracy in over a chairmanship and a member's pre-
letter. Sen. Fulbright replied, but not very Latin America without so much as a murmur rogatives, but a pattern of congressional
substantively, suggesting that the real solu- to his colleagues--this was the man assigned acquiescence in the seductive game of shared conduct
pleasant fee ing
ion
with
star
tha
inves
b ing Itpr vyt to thingsounknown to lthe
Lion the problem was the establishment a would ogic.a lyein ludelhis ownglatck of ac- ofcrets
a joint committee this oversight.
I felt ambivalent at at this point as to how I Lion as a subject of inquiry. I went to the ordinary citizen, but it works very much like
ought to proceed-I did want to stick with floor of the House on the day his chairman- blackmail. The more you know about dubious
the
secret
houg
and sai
told sable for hiding Sand the more you hide, the
the
more obvious lines congressional
to follow. At any rate the was an outrage. This Indiscred tI waht it
ter was set aside in my preoccupation with later by horrified staff and colleagues, was tighter the grip of the State Department or
proceedings ofnthe House Judiciary Commit- given kals a t on the committee myse f b and Lucien ANedzi seproblem is hatr he got to eful secrets
t 'le summer's
had to have ato work with him- that he wan andiv such bdi t tend gagged
tee. Then on September 6, Seymour Hersh of would therefore
The New York Times called up to i but I felt
quire about the context which s
ien, saying that he hadta later came to agree with me. select p rem really b Tl ere are only two ways to avoid that
tors had been position. You can stick your head in the sand
copy one them. I told him I didn't want had the scent by now, and it soon came out and let the ahandle such
the issue raised in this manner and, suspect- that Nedzi, as chairman of that Armed Serv- thins or you can administration stratn a the terms of
ing he may only have heard a rumor, I said ices subcommittee, had been briefed on CIA g . y g
Certainly itself, the game basically a
I wouldn't comment on the substance of the assassination plots more than a year before theggame
and
letter until I saw his story in print. He as- and, once again, had done nothing. With intelliethe nce gathering t d States , needs a
sured me I could read it in the Times on this news in hand, the select committee first-rate that system will require that
Sunday, two days later, which I did. Democrats rebelled, demanding a different maintaining
some secrete. But the acceptance eqne 't of
Shortly thereafter Mr. Nedzi asked me to chairman. But Speaker Albert balked at deal- a c keeification ecrts. gone the cctof advis
ence
wild appear before his Armed r io s s leak. ex- and the full Housevlater gave. Nng pa edzitia re- less rubber-stamping of every conceivable with the pea to account thfor the egregious piece of information with the national secu-
be-
objection to 'the group, meeting against sounding vote of coohi by refusing to rt label-has obscured the distinction be-
had not in closed session, that the e Times accept his, left Nedzi In tween legitimate intelligence gathering and
with which he refused It
had not gotten the story from m me or my y charge of it committee This
the cover people for and almost institututtioions. kind
office. But this was not satisfactory, for the to work, and the investigation came to a manipulation aul pulatioulation of
crime and impropriety at home, and it has
point was raised that House Rule Xi, See- standstill. has
tin 27(o) says that no evidence or testimony A major reason for that vote and the sub- of crime a imprie y at h e, and that
our that
taken in secret session may be released or sequent selection committee stalemate is covert a v tmase overse
used in a "public session" without the con- what was happening back at Armed Services. have national done ett tremendous ndin
sent of the committee. A further issue was Curiously that committee's leadership de- After 10 years of Vietnam and the Water-
the pledge I had to sign in order to read the cided to take up the question of my access ate affair, the Amerietn m and the Watnle understa Chile.material, which said that classified in- to its classified files-stemming from the gate. They know mat their leaders have lied mont authorized not divulged any uhe Chile wheni Mr Nes before -at
failure astan routinely, cloaking arrogance and bullying
eushorized person. Unauthorized son, the and greed in terms of the national interest.
to . operations had come They know that a secret agency that can
ensuing exchange made clear, cincluded other to national intelligence
members of Congress. ona al attention. June. 10, five days overthrow a foreign government is a threat'
This meeting did not maintain the highest after the New York Times broke the story of They kthat a Con-
level of discourse-one member compared me Nedzi's inaction on assassination schemes to reds democoarracy will here. . away know masquerade to
to Benedict Arnold-but I tried to make to and at the height of the controversy over his hide those kinds of actions can also dis-
genuine subcommittee a distinction between remaining as Select Committee chairman, hide t os its handling iust' abals any-
this, too, ny-
genuine concern for the national security and House Armed Services met in an improperly thing else. The Congress knows just,
the facile use of that label to cover official announced closed session and, without a refuses to admit It. And that why the
acts of duplicity and illegality. Suggesting quorum present, voted unanimously to bar refuse investigation to admit n opera-
some hthis distinction was one of the principal lee- me from :further access to its files. No notice ous will stmain a touchy intelligence of Vietnam and Watergate, I maintained had been given me that this action was be- matter who is n a t ch uni undertc ating. Io
that the cover-up of US actions in Chile was ins considered-in fact I didn't find out the back of every member's mind is the un-
bi t scandal
es
th
yet another case of navionaM ulent application. My remarks did not set w I won't dwell on the several ways in which
well
Nevertheless the storm seemed to pass. The narrow tmajority fn the total committee, was
next day I wrote to Mr. Nedzi asking that a itself a violation of House rules, except to
transcript of the session we had just com- say that a committee cannot take away the
pleted be made available to me when it was privileges a congressman holds under the
prepared. The letter was never answered, and rules of the House as a whole--one such priv-
I concluded that Armed Services had decided liege being access to all committee records,
to drop the matter. I went off to campaign regardless of committee membership. A more
telling point is the action's glaring hypocrisy.
e ag
comfortable sense that
in the sordid story of CIA wrongdoing is the
failure of effective oversight the cover-up
by the Congress.
POPULATION STABILIZATION BY
VOLUNTARY MEANS: A WORLD
NECESSITY
for reelection.
Meanwhile Mr. Hersh had turned over an- Columnist Jack Anderson, for example, was
other rock, and in December and January quick to say that he has received leaks of SPARK M. MATSUNAGA
wrote a series of stories alleging that the CIA classified information from many members HON.
had conducted a program of massive surveil- of House Armed Services on many occa- of HAWAII
lance of. American citizens in direct violation sions-"l: have no difficulty getting secrets IN THE HOUSE OF REPRESENTATIVES
of its charter. out of that committee when I want them,"
Although cynics might have suggested he said. There are tolerable leaks and in- Monday, July 28, 1975
that this only amounted to bureaucratic tolerable leaks, apparently, and the char- Mr. MATSUNAGA. Mr. Speaker, only
overlap with the FBI, the revelation jolted acterization depends not or. the strict dic-
Congress in a way that harassment and as- tates of the rules but on the current inter- 7 years ago, a book was published which
sassination of foreigners never seemed to- ests of the committee leadership or the Exe- caused many Americans to become deeply
possibly because some reports charged that cutive branch. concerned about the future of this coun-
the agency had snooped on senators and rep- The Armed Services action. was perfectly try-inded, of the world. Professor Paul
resentatives. In any case hard on' the heels timed to shift the focus of debate on the Ehrlich's "The Population Bomb," de-
of the President's establishment of the handling of classified material from Lucien scribed the dire effects of population
Rockefeller commission, the Senate voted to Nedzi to Michael Harrington. And at. least scowth on the world's resources, and ion
set up a select committee to investigate the over the short term, the tactic seems to have rowth one were very sobering.
full range of US intelligence activities. I pro- worked. Certainly it contributed to the out- h'
posed formation of a similar committee in pouring of affection for the harried select Because Mr. Ehrlich's predictions still
the House, and after a month-long minuet committee chairman who just happened to remain valid, I was pleased to reintro-
of maneuver and delay, we had a select com- have his resignation considered by the House duce last week, together with the gen-
mittee, too. I felt pretty good about it until on the day of the second Armed Service tleman from New York (Mr. HORTON), a
the Speaker announced his choice for chair- vote against me. From the swirl of publicity joint resolution calling for the develop-
man-Lucien Nedzi. ' over another member's endangering of the men- and implementation of a national
Lucien Nedzi, the man who had sat on his nation's defenses, Mr. Nedzi was borne up on policy to stabilize Uti population by
hands as chairman of that permanent sub.- wings of angels. The vote was 290 to 64.
committee on 'intelligence since 1971, who - If one takes a step back from all of this, voluntary means.
had listened to the agency horror stories what emerges is not a narrow controversy At the present rate of growth, world
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`' of Remarks Jul?/ 2R I ~a 2 ro
-NUaaU - `~ ClcPectea to aouoie in 30 population stabilization resolution can
years. Yet, under the hypnosis of the help to check a potential disaster.
phrase "baby bust," coined to describe Although the measure is not an end in
recent drops in birth rate, many Amer- itself, it is a sound and much-needed be-,
icans have tended to attribute the popu- ginning. While it calls for a national pol-
lation problem to the underdeveloped icy on population planning, it clearly em-
countries. It is true that America's cur- phasized that such planning will be pure-
rent fertility rate Is the lowest our sta- ly voluntary. It Is not our intent to pre-,
tistics have recorded, and while this iso- scribe any method to coerce couples into
lated fact is encouraging
other con
id
,
s
er- bearing fewer children. Rather, we be-
ations indicate that celebration is pre- lieve it imperative to explore such vital
mature. For America constitutes only areas as more sophisticated contracep-
5 percent of the world's population, while tion and family planning to present
consuming a third of the world's re- couples with the alternatives available
sources. Mr. Speaker, how long can we to them, and to encourage them to con-
continue this high rate of consumption, Sider the widespread repercussions of
even if our population increases at a their decisions on the ecosystem.
lower rate?
Other demographic considerations are population Having i recognized necessary a
that a healthy en-
grim. At present, the fertility rate is 14.9 vironment, the reso resolution also tInsists
per thousand, yet this figure still greatly upon Government's respect for human
exceeds the death rate of 9.1 per thou- choice and individual conscience. These
sand; consequently, U.S. population is last two considerations must be preserved
still increasing by 1.2 million annually if American democracy Is to survive.
by natural means. An additional 400,000 Mr. Speaker, the population bomb has
legally immigrate to our country an- not yet been detonated. I appreciate this
nually, and estimates of illegal immi- opportunity to present this resolution to
grants run as high as 1 million a year. my colleagues, and I urge them to act de-
Even if this latter figure Is exaggerated, cisively for the well-being of our Nation
I am sure that my colleagues will under- and the survival of our planet. At this
stand that the current low fertility rate point, Mr. Speaker, I include the text of
has hardly stemmed the population in- the joint resolution:
crease. If we are to retain our quality of H.J. RES. 125
life, a sound national population policy, Joint resolution to declare a United States
such as our joint resolution calls for, is policy of achieving population stabiliza-
imperative. tion by voluntary means
O
ne aspect of American life for which
we are all grateful, is the advanced med-
ical technology which our doctors prac-
tice. Partly as a result of preventive med-
icine techniques, and partly as a result
of improved economic factors, the post-
war years of 1946-63 witnessed an un-
precedented "baby boom." Many born
during that period have reached their
reproductive years and, consequently,
could triggera second "baby boom" sim-
ply because the number of childbearers
increased. Current estimates project the
number of fertile women to be 50 mil-
lion In 1980.
Unless measures such as this resolu-
tion are enacted-and acted upon-the
results could be literally tragic. Will we
have the resources to sustain these new
lives?
Surely it is not difficult to understand
that an inverse relationship exists be-
tween the quality of life and population
growth. Indeed, it has been remarked
that none of the world's problems can be
solved unless population is controlled.
Scientific research has repeatedly dem-
onstrated that animals placed in a
crowded environment become violent and
show signs of psychological strain. The
implications for our teeming urban areas
are readily apparent: schools become less
efficient institutions; the scarcity of jobs
causes frustration; and privacy becomes
a luxury. More subtle, perhaps, is an-
other effect of unchecked population
growth : If our finite resources have to
be divided among more and more peo-
ple, cultural variety will inevitably de-
crease; mass production mentality will
prevail over individual considerations.
Mr. Speaker, it is Indeed a bleak pic-
ture I have described; but I am confident
that legislation such as this voluntary
Whereas continued population growth be-
yond that already inevitable brings no social
or economic benefits to our society, and
Whereas continued population growth
magnifies social, economic, and political
problems and, in conjunction with uncon-
trolled technology and high levels of per
capita consumption, causes pollution and
degradation of the environment, and
Whereas all citizens of the United States
seek a world with healthy environment,
clean air and water, uncluttered land,
copious open spaces, natural beauty, and
wilderness and wildlife in variety and abun-
dance, in which the dignity of human life
is enhanced, and
the policy of the United States to encour-
age, develop, and implement, at the earliest
possible time, policies which will, by volun-
tary means consistent with human rights
and individual conscience, move tostabilize
the population of the United States and
thereby promote the future well-being of the
citizens of this Nation and the entire world.
NATIONAL BATON TWIRLING
WEEK
HON. MARTIN A. RUSSO
OF ILLINOIS
IN THE HOUSE. OF REPRESENTATIVES --
Monday, July 28, 1975
Mr. RUSSO. Mr. Speaker, I would like
to bring to the attention of all my col-
leagues that this is National Baton
Twirling Week. Combining the excite-
ment of competition and the fun of trav-
eling, youngsters from all over the
country have gathered in South Bend,
Ind., this week for the national finals.
The winners will receive many coveted
prizes and awards, but perhaps most im-
portantly, the esteem of their fellow
twirlers. While the losers will not receive
any trophies, they possess the knowledge
of having given their best in a spirited
effort.
All of us have viewed these dedicated
young people, resplendent in their color-
ful uniforms, marching down the main
streetsOf every American city and town.
Few of us realize how much hard work,
energy and coordination this graceful
exercise requires. Hours of individual
practice on a single maneuver, which
must then be incorporated into an entire
routine take place before the twirlers
meet and coordinate their styles in a
group effort.
In addition to providing entertainment
for millions of people, baton twirling also
promotes rehabilitation of the physically
handicapped. The dexterity a handi-
capped person gains from twirling a
rent with other measures to solve the prob- baton advances him or her that much
lems of poverty, discrimination, urban decay, closer to the goal of complete recapture
and environmental deterioration, would of his/her physical movement.
enhance the well-being of the people of our We should also pay tribute to the
Nation, and urganization that has coordinated this
Whereas adoption of a national policy of week's activities in South Bend, Amer-ulatio popity to n
the Uni St stab tez ti tee wouldeffortsleto eI credi- ica's Youth on Parade. Organizing this
age solutions to the explosive population year's program is Mr. Don Sartell, na-
growth which, throughout the less developed tional director of the National Baton
world, obstructs economic progress, creates Twirling Association. He has served as
massive unemployment, and perpetuates the national director since he founded
widespread malnutrition and poverty, and the association in 1945. Planning this
Whereas the demographic profile of the major event requires an extraordinary
United States requires that population eta- amount of work and time on the part of
bill detion and only take place over a period many outstanding people. Without these
Whereas delaying development of public hard-working individauls, dedicated to
policies to stabilize population magnifies the helping America's youth, these young-
problems and the cost of their eventual sters might have turned to less desirable
solution, and pursuits. But thanks to these concerned
Whereas the provision of accurate and adults, the program has flourished from
objective knowledge about the implication of Its inception.
demographic phenomena for our society will I am including a copy of the proclama-
enhance the ability of individuals to make
tion choices and decisions, and on of National Baton Twirling Week Whereas more effective coordination of as part of my remarks so that everyone
Federal programs related to population is can appreciate the achievements of this
necessary to insure their effective irnple- fine organization:
mentation: Now, therefore, be it PROCLAMATION-NATIONAL BATON TWIRLING
Resolved by the Senate and House of WEEK, JULY 27 To AUGUST 2, 1975
Representatives of the United States of Whereas, the baton twirling movement has
America in Congress assembled, That it is affected the lives of American girls and ho. s.
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S 18958 CONGRESSIONAL RECORD --SENATE
appointment of only an observer at the U.N.,
unlike many other nongovernmental orga-
nizations, which have accredited representa-
tives at the U.N. who can express the views
of their respective organizations to the sec-
retariat and certain specialized agencies.
The Section of International Law has
a continuing Committee on United Nations
Activities, which has initiated resolutions
for Association action in U.N. matters and
has written an intermittent department in
this Journal summarizing current events at
the U.N.
The Association has considered a number
of U.N.-related resolutions. In 1973 a resolu-
tion was adopted relating to the resources
of the seabed, and the Association in Mont-
real in August of this year adopted a resolu-
tion disapproving the attempt to suspend
or expel a U.N. member state or deprive it
of the right to participate in U.N. activities.
In 1947 and 1960 the Association urged re-
peal of the Connally reservation to the
United States' acceptance of the compulsory
jurisdiction of the World Court.
In 1973, after Congress refused to author-
ize the funds required for the United States
annual contribution to the International
Labor Organization because of dissatisfac-
tion with some of its policies, the Association
passed a resolution calling the attention of
Congress to the fact that this action was a
violation of our treaty obligations under
the U.N. Charter.
In 1974 the Association adopted a resolu-
tion opposing the Charter of Economic
Rights and Duties of States in the absence
of any provision that the obligations of na-
tigns include compliance with principles of
international law. That resolution was
among the factors which caused the United
States to vote against the charter at the
1974 meeting of the General Assembly.
MIXED RECORD ON HUMAN RIGHTS
The record on U.N. human rights conven-
tions has been mixed. In 1967 the Associa-
tion voted in favor of ratification of the
Supplemental Convention on Slavery; took
no position on the Convention ail Abolition
of Forced Labor; and Opposed the Conven-
tion on Political Rights of Women. In 1970
by a close vote (130-126), it opposed rati-
fication by the United States of the Genocide
Convention. This opposition has been one
of the factors that so far has caused the
Senate not to ratify the Genocide Conven-
vention.
In 1974 the Association affirmed its sup-
port of an independent judiciary and bar
in all nations and expressed disapproval of
the conduct of some nations in detaining
and harassing attorneys for representing in-
dividual defendants.
ASSOCIATION HAS GREAT INFLUENCE
As the spokesman for the organized bar
in the United States, the Association can
have considerable influence on our nation's
policies with respect to United Nations ac-
tivities. This suggests that the Association
should continue to observe those activities
and to take positions on important matters,
particularly those with legal implications,
that affect our nation's foreign policy.
Among the steps the Association should con-
sider are: (1) approval of the Genocide Con-
vention; (2) approval of the racial discrim-
ination convention; (3) approval of the
forced labor convention; (4) urging again
the repeal of the Connally reservation to our
adherence to the statute of the Interna-
tional Court of Justice; and (5) the appoint-
ment of a representative accredited to.the
U.N. instead of an observer. .
RIDING ON "SPACESHIP EARTH"
The United Nations was created thirty
years ago to fill a desperate need-to devise
ways to structure a more peaceful and orderly
world. In the intervening years the orga-
October 30, 1975
nization has proved to be imperfect in many Went -aa*xl__lleaa a. CgnrPad ra.nrnajga%. w
that abolition or abandonment of the U.N.
would be foolish. The American people rec-
ogize this; in a Gallup poll this year, 75
per cent of those asked said that the United
States should not give up its membership
in the United Nations. A recent Louis Harris
poll reported that 60 per cent of the Ameri-
can public supported conducting "more and
more" of our foreign affairs through inter-
national organizations.
Like all other participating nations, we
hope that we can persuade others to concur
In our policies and proposals for U.N. action.
But we must be prepared to live with oc-
casional defeats and to compromise from
time to time, as vie do in domestic politics,
to make the organization more effective in
solving the monumental worldwide problems
that confront all of us who arc obliged to
travel-strapped in together-on this "Space-
ship Earth."
THE UNITED NATIONS RESOLUTION
ON ZIONISM
Mr. TAFT. Mr. President this week
the Senate passed, on a voice vote, a
resolution condemning the action taken
by the social, humanitarian, and cultural
committee of the United Nations label-
ing Zionism as a form of racism. I sup-
ported this resolution.
Such an action would deny the concept
of a State of Israel accepted by the
United States since the Balfour declara-
tion and reaffirmed by us frequently
ever since. Moreover, it is a concept that
was recognized by the United Nations
when the State of Israel was created out
of the wreckage of World War II.
This, action is only the most recent of
several moves by the Third World na-
tions to politicize the U.N. There has
been an increased concern in the Con-
gress over continued usefulness of the
U.N. It would be certain to affect the
amount of funding for the United Na-
tions from the United States in light of
this type. of action by member states.
Passage by the full General Assembly of
the antisemitic resolution on Zionism
will only force the Congress to seriously
consider further American reductions in
United Nations participation.
GROWING AID TO CHILE
r. CHURCH, Mr. President, the Sen-
is who gets our foreign assistance and
for what purpose. While the House In-
ternational Affairs and the Senate For-
eign Relations Committees have worked
hard to see that in the future foreign
aid goes to the most needy countries
and for purposes which will help the
poor of the world, it is still for the ex-
ecutive to dispense that aid and the
Nixon-Ford administrations have made
clear how frequently considerations,
other than humanitarian concerns, dic-
tate the choice. While this is not unusual
in the 30 years of foreign aid, the differ-
ence is that these administrations have
tended to favor repressive governments.
, U.S. aid
o - e point where this one
country now gets 85 percent of the food
aid going to all of Latin America, Eco-
nomic aid stands above $20 million and
had it not been for congressional auction
cutting it off, military aid would be even
higher.
Columnists Jack Anderson and Les
Whitten have written about this aspect
of foreign aid, as well as the U.S. coun
terinsurgency school also eliminated br
Congress. I ask unanimous consent tha,N
portions of their October 11 column be
printed in the RECORD.
There being no objection, the material
was ordered to be printed in the RECORD,
as follows:
[From the Washington Post, -Oct, il, 1975,'
U.S. Am To CHILE GRowxue LARGER
(By Jack Anderson and Les Whitten)
The closer we examine the relationship
between the U.S' government and the Chil-
ean dictatorship, the more curious it be-
comes.
The military regime in Chile holds the
dubious distinction of being one of the most
repressive in the world. Thousands of Chil-
eans have been arrested, beaten and tortured
for their political beliefs. Hundreds more
have simply disappeared without a trace.
Yet U.S. support for the dictatorship has
never waned. Indeed, it's getting stronger.
The year after Chilean strongman Auguste
Pinoche took over, for example, U.S. econom-
ic assistance to Chile doubled from $9.8 mil-
lion to $20.5 million. According to current
plans, Chile will get $77 million in 1978.
Of this, $55 million in "Food for Peace"
funds alone will be earmarked for Santiago.
Chile, in short, will get 85 per cent of the
food aid that will be pumped into all of
Latin America.
On Dec. 30. 1974, Congress cut off all mili-
tary assistance to Chile. Until Congress in-
tervened, however, military aid to Santiago
was steadily climbing. It stood at $16 mil-
lion in fiscal 1974.
These are merely the obvious ways Wash-
ington has helped keep the junta afloat.
Occasionally we also get a glimpse of the
covert assistance given to Chile.
Take, for example, the Army's "School of
the Americas," located in the Panama Canal
Zone. The school, stuck back in the Jungle
near the Caribbean coast, has been around
in one form or another for three decades.
It is specifically designed to train Latin
American soldiers; all classes are taught in
Spanish.
To no one's great surprise, we discovered
about a third of the school's students in
1976 came from Chile-575 out of a total
enrollment of 1,765,
One popular course, entitled "Officer Com-
bat Arms Orientation," was attended by 993
students. Over half of them-504--were Chil-
ean officers.
They were given standard military train-
ing in such subjects as map reading, first
-aid and signal communications. The em-
phasis, however, was on anti-guerrilla war-
fare.
A full 16 hours of instruction, for exam-
pie, were devoted to "basic concepts of coun-
terinsurgency in urban areas." Nine hours of
"psychological operational' were taught. But
the most intensive instruction was given in
125 hours In "counterinsurgency operations;.
anti-guerrilla warfare in the- field."
Until Congress put an end- to mlitary as-
sistance to Chile nine months ago, in short,
the U.S. government was teaching the junta's
foot soldiers how to repel the "dissidents,"
who oppose them.
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October 30, 1975 CONGRESSIONAL RECORD-SENATE
powers--especially the United States and the
U.S.S.R. Under the new structure, called the
United Nations, every nation. large or small,
would have the right to participate and vote
in the General Assembly, but action could
only be taken by a vote of the Security
Council, including the affirmative votes of the
permanent members-the United States, the
U.S .R., the United Kingdom, France, and
China. This provided the great powers with
the veto, which was favored by the United
S-i: tes as well as the U.S.S.R., but was re-
Ieatedly used by the U.S.S.R. during the cold
,~var days of the 1950s to block U.N. actions
Savored by the United States and other non-
communist nations,
In addition to the General Assembly and
the Security Council, the organization estab-
lished a number of less-known but impor-
tant specialized organs and agencies, such
as the International Court of Justice, the In-
ternational Atomic Energy Agency, the Food
and Agricultural Organization, the World
Health Organization, the World Meteorologi-
cal Organization, the International Labor
Organization, and many others, These now
have most of the U.N.'s staff and consume
nine tenths of its annual budget.
CHANGING TIMES
In the years since 1945 dramatic changes
have occurred in the world, many of which
could not have been fully anticipated and
which have posed ,challenges to the U.N.'s
capabilities.
The cold war has given way to the new
spirit of detente, born of the realization that
resort to nuclear war to attain political ob-
jectives is no longer a realistic option for
rational world leaders and that compromises
and mutual accommodations when possible
offer hope for an era of relative peace.
The 51 original member states of the U.N.
have grown to 141, large and small, rich and
poor, industrialized and underdeveloped, and
colonialism has all but disappeared.
The world's population has increased from
2.8 billion in 1954 to about 4 billion in 1975,
with the expectation that unless the popula-
tion explosion is controlled, the world popu-
lation will reach 6.5 billion in the next
twenty-five years. Of the present population,
more than half are suffering from poverty,
malnutrition, and disease.
Tremendous technological advances have
occurred, including the capability to explore
and locate colonies in outer space, to mine
and harvest the resources of the deep seas,
to have direct radio and television commu-
nication by satellite to any part of the world
instantly, and even to bring about changes
in the weather for political or economic
purposes.
Under the guidance of U.N. agencies, great
strides have been made' in producing now
hardier strains of food grains, in establish-
ing world-wide weather monitoring systems,
in stamping out malaria, smallpox, and other
diseases, and in developing controls over
dangerous activities involving nuclear energy.
It is In the field of peacekeeping and In
peacemaking that the U.N. has had its most
mixed record of successes and failures. One
need only to recall the U.N. participation in
the Korean War, the Chinese invasion of
India. the India-Pakistan War, the Greco-
Turkish confrontation in Cyprus, the Viet-
nam War, and the Middle East wars of 1948,
1967, and 1973 to realize that the U.N. has
only been successful in bringing about a
cessation of hostilities and the installation
of a peacekeeping force when all the affected
nations wanted that tO'happen. Without this
willingness, the U.N. has been powerless,
but when that willingness was present, the
U.N. peacekeeping activities have been valu-
able as, for example, in the_ Gaza Strip, the
Congo, and Cyprus.
The United Nations Conference on Inter-
national Organizations was convened in San
Francisco on April 25, 1945, and concluded
the drafting of the United Nations Charter
and the Statute of the International Court
of Justice by June 26. The charer provided
that it would come Into force when it was
ratified by the "Big Five"--China, France,
the United Kingdom, the United States, and
the U.S.S.R.-and a majority of the other
signatory states "in accordance with their
respective constitutional processes." The
United States government was designated as
the depository of ratifications.
The United States Senate ratified the char-
ter on July 28, 1945, by a vote of eighty-nine
to two. The United Nations came into exist-
ence on October 24 when the ratifications
of the Byelorussian S.S.R. and the Ukrainian
S.S.R. and the required ratification of the
U.S.S.R. were deposited On October 26 the
American secretary of state Issued a protocol
proclaiming that the charter had become "a
part of the law of nations."
The first part of the first session of the
General Assembly was held in London in
January and February of 1948, and the second
part of the first session was held at Flushing
Meadows on Long Island from October to
December of 1946.
TODAY'S PROBLEMS AND CHALLENGES
In today's interdependent but far-from-
orderly world, the U.N. on a global scale faces
all the problems of the individual nations.
We should never forget that the U.N. is not a
separate supragovernmental organization; .it
is a vehicle for expressing the wishes and
needs of individual member states that are
jealous of their sovereignty, and it can act
only when those member states, including the
great powers, arrive at a workable consensus
as to the nature of the problem and the de-
sired method of meeting it.
In the last half of the decade of the 1970:,
some of the major problems confronting the
nations of the world and, therefore, the
United Nations are:
1. The need to narrow the growing gap
in living standards between the developed
and developing nations by finding ways to
feed, clothe, house, and find employment
for the two thirds of the world's population
now located in the less developed countries,
most of which Ile in the southern hemisphere.
2. The need to develop, utilize, and protect
the natural resources of the land and the
seas in ways that will benefitall countries
more fairly than heretofore.
3. The need to protect the world environ-
ment from ever-increasing pollution, with-
out unduly restricting industrial develop-
ment.
4. The need to establish better means of
peaceful settlement of disputes between na-
tions, including such varied techniques as
creation of permanent peacekeeping forces
under United Nations control, greater use of
the International Court of Justice and other
courts, arbitration, and mediation.
5. The need to strengthen the respect of
nations for individual rights and freedoms
by eliminating discrimination on account of
race, religion, sex, color, or national origin;
guaranteeing rights of emigration and re-
turn eliminating slavery, torture, and child
marriage (which still exist in some coun-
tries); and providing a forum within the
U.N. for the presentation and handling of
individuals' grievances against nations.
6. The need to find ways of regulating the
international activities of multinational
business enterprises so as to produce greater
benefits for host countries, without unrea-
sonably hampering those enterprises and
driving away needed investment.
7. The need to achieve a permanent State
of peace in the Middle East.
8. The need to develop effective means of
controlling the production, sale, and use
of both strategic and conventional arma-
ments.
S 18957
That list of problems points up the ob-
vious fact that there shall have to be con-
siderablo exertion of collective efforts, self-
restraint, and compromise by the member
nations if these problems are to be solved be-
fore they become insoluble. And yet there
are some areas in which the actions of some
nations now are creating increased tensions
and the seeds of turmoil within the U.N.,
which could seriously hamper its effective-
ness or even tear it apart. For example:
1. In 1974 the General Assembly, at the
urging of the developing countries of the
third world, adopted a Charter of Economic
Rights and Duties of States. It declares the
right of each nation to exploit Its own nat-
ural resources and to nationalize or expro-
priate the property of foreign investors, with
compensation paid according to its own law
and without regard for international law
principles, such as the right of the former
owner to receive prompt, reasonable, and ef-
fective compensation for the seized property.
2. Many nations, led by the Arab states,
have recently announced a concerted plan to
attempt to expel or suspend a member na-
tion-Israel-from the V.N. and its special-
ized agencies or to deprive it of participation
in the activities of those agencies, in viola-
tion of Articles 5 and 6 of the United Na-
tions Charter. Similar actions have been
taken in the past against the Republic of
South Africa. These actions have caused Sec-
retary of State Kissinger to warn that "those
who seek to manipulate U.N. membership by
procedural abuse may well inherit an empty
shell."
3. In earlier times the United States usual-
ly could muster an "automatic majority" of
votes in the General Assembly but often en-
countered the veto of the U.S.S.R. in the
Security Council. Now the shoe is on the
other foot. The third world frequently pro-
duces in the General Assembly, by a bloc
vote, unrealistic and unenforceable resolu-
tions. This has caused President Ford to warn
the General Assembly against the "tyranny
of the majority."
4. In the struggle to gain control over ocean
resources such as fish, offshore oil, and
minerals from the seabed, some nations are
claiming territorial dominion over the seas
adjacent to their shores for a distance of as
much as 200 miles. If some agreement is not
reached soon In the pending conferences on
the law of the sea, the conflicting economic
interests of nations could lead to unre-
strained unilateral acts of exploitation that
could even produce armed conflicts between
"have" and "have not" nations.
5. In some respects the U.N. Charter is In-
adequate to meet today's conditions. Yet
there is fear, in the United States and else-
where, that any attempt to revise the char-
ter might produce, because of political bloc
pressure, new provisions that would be more
undesirable than the present provisions.
While some of these rocks and shoals might
be enough to cause the U.N. ship to be dam-
aged or even founder, it is hoped that enough
collective good will and accommodation shall
be found to permit a safe passage.
THE AMERICAN BAR ASSOCIATION AND THE V.N.
In the past thirty years the American Bar
Association's attitude toward the V.N. and its
activities has been somewhat ambivalent. The
Association is on record as supporting the
United Nations, yet in the 1950s the Commit-
tee on World Peace through Law and the
Committee on Peace and Law through the
United Nations (later to be combined into
the Standing Committee on World Order un-
der Law) frequently took diametrically op-
posed positions on specific U.N. issues. While
the Association annually appoints a rep-
resentative to the United States Mission to
the United Nations, the Association's early
mistrust of the U.N. itself has resulted in the
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October 80, 1975 CONGRESSIONAL RECORD -SENATE.
soldiers to. the basic officers course in 1975
are outright dictatorships. Bolivia, presided
over by the repressive Cola Hugo Banzer, sent
1,203 students. The once-democratic Uru-
guay, which now has what experts believe
is the highest per capita ratio of political
prisoners in the world, sent 37 students.
SMALL BUSINESSMEN SUFFER
Mr. CURTIS. Mr. President, it was
with considerable distress that I learned
Tuesday- that Senate and House con-
ferees on the Labor-HEW appropriations
bill had struck two blows against the
small businessmen of America.
To refresh the memories of my col-
leagues, I would point out that In de-
liberations on the Labor-HEW appro-
priations this year, the Senate approved
three amendments to the Occupational
Safety and Health Act.
These amendments were designed to
eliminate or reduce burdens that have
proved very costly and unreasonable to
small, Independent businesses.
I sponsored one of those amendments,
which passed-by a vote of 48 to 45 on
September 24. My amendment in effect
exempted employers having three or
fewer employees from requirements of
the Occupational Safety and Health Act.
Another amendment, sponsored by
the Senators from Louisiana and Florida
(Mr. JOHNSTON and Mr. CHILES) was
passed by a voice vote on September 17.
It limited to $50 the amount of a fine
for first-time, nonserious violations of the
Occupational Safety and Health Act.
Such fines at present can be levied at
up to $1,000 and are most injurious to
small businesses.
A third amendment sponsored by the
Senators from South Dakota and Loui-
siana (Mr. AsouaEzx and Mr. JOHNSTON)
was passed on September 17. It exempted
small businesses with 15 or fewer em-
ployees from the costly, time-consuming,
and burdensome tasks of the record-
keeping and reporting requirements of
the Occupational Safety and Health Act.
Mr. President, at the time we adopted
these amendments, I felt we had at last
begun to show some reason and under-
standing of the problems and plight of
small businessmen in this country.
Now, however, I am shocked to know
that the will of the majority of this body
has been overruled by the 'conferees on
the Labor-HEW appropriations bill
which was passed with those three small
business amendments on September 26.
I learned of the action of the conferees
on Tuesday; when a short article in the
Wall Street Journal reporte dthat the con
conferees dropped the two Senate amend-
ments which exempted small businesses
with three or fewer employees from
OSHA, and which established the $50
maximum fine for a first time non-
serious violation.
The small businessmen and farmers
of the country are entitled to an explana-
tion from the conferees.
Mr. President,, I am aware that the
bill that passed the House did not con-
tain the two amendments as passed by
the Senate. But, I would point out that
the House last year-on June 27-passed
an amendment to the same. appropria-
tions bill to exempt small businesses with
25 or fewer employees from the Occupa-
tional Safety and Health Act.
This is no small matter to the hun-
dreds of thousands of small businessmen
across the country whose very liveli-
hoods are threatened by ever-increasing
Government regulations, restrictions,
and requirements.
I think the action by the Senate and
House conferees in reversing the ma-
jority decision of the Senate is a great
error.
PLANNING A PLANT
Mr. HARRY F. BYRD, JR. Mr. Pres-
ident, the October 22 Wall Street Journal
carried a front page article about a lead-
ing Virginia corporation, the A. H. Robins
Co. of Richmond. -
The plant was dedicated last week at a
Petersburg, Va., site which was selected
with the help of State development offi-
cials and -will result in new jobs for
Virginians.
The author of the article, Victor F.
Zonana, points out that there are many
new plants being built in the United
States, but that this story illustrates
well, "how real people make real deci-
sions in the real world,"
I ask unanimous consent that the arti-
cle be printed in the RECORD.
There being no objection, the article
was ordered to be printed In the RECORD,
as follows:
PLANNING A PLANT: How A. H. ROBINS Co.
MADE DECISION To. BUILD A CHEMICAL FACIL-
rrY
(By Victor F. Zonanar
PETERSBURG, VA: -At noon today, A. H.
Robins Co. will hold a luncheon for Peters-
burg city officials at the local Ramada Inn
to announce plans for a $6 million chemical
plant and service facility here.
As business news goes, the announcement
wouldn't normally rate much attention. A.
H. Robins, a big pharmaceutical concern
headquartered in Richmond about 30 miles
north of Petersburg, has made far larger
investments. Other companies across the
nation in the next,few days doubtless will
unveil bigger plans,
But the story of how A. H. Robins came to
make its investment here Is nonetheless
worth telling, It's a tale of more than a year
of Intensive planning, of intracompany war-
fare and of unexpected economic and busi-
ness developments-atis well as of how real
people make real decisions in the real world
"that you'd never learn about at Harvard
Business School," as one Robins insider puts
it. Among other things, Robins started out
planning to build or buy a plant of its own;
it wound up, almost at the last minute, in a
joint venture with a big St7'est German phar-
maceutical concern, Boebringer Ingelheim
Associated Cos.
IMPORTANT DECISIONS
The story is also important for what it tells
of the problems that businessmen face these
days in trying to decide whether to commit
funds to capital projects, whatever their size.
The level of capital spending this year and
next is likely to be a key factor in determin-
ing whether and how fast the American
economy recovers from Its worst recession in
decades. Last month, the Commerce Depart-
ment projected that 1975 capital spending
would plummet 11.5% below last year's, and
most economists are cautious about next
year's outlook. i
The story of the A. H. Robins project ac-
tually begins in 1968, when company chem-
S 18959
fists first synthesized a white powdery chem-,
ical called methocarbomal. A muscle relax-
ant, methocarbomal was patented and sold
in pill form under the name Robaxyn after
receiving government clearance. Contracts
were given to several chemical makers to
supply Robins with raw methocarbomal,
since the company only made finished phar-
maceuticals.
Robaxyn was a big success. By 1967, Ro-
bins believed it was buying enough metho-
carbomal to consider making the chemical
for itself. The company was also purchasing
large volumes of glyceryl guafacolate (GG)
for Its Robitussin cough medicine, and since
methocarbomal was a derivative of GG,
manufacture of the two petrochemicals
seemed desirable, according to William L.
Zimmer III, Robins' 63-year-old president.
DELAYED BY FDA STUDY
But the idea hit a snag and was shelved
in 1970 when the Food and Drug Administra-
tion's Drug Efficacy Study, an industry-wide
review of pharmaceuticals, gave methocar-
bomal a "questionable" rating. Although the
FDA eventually cleared the chemical in
1974, the review kept methocarbomal, along
with Mr. Zimmer's idea of manufacturing it
and GO, under a cloud for four years.
The idea was revived by the. 1973-74 oil
crisis and the resulting shortages of petrole-
um-based chemicals. "Skyrocketing chemi-
cal prices were cutting into our profit mar-
gins," Mr. Zimmer says, noting that the
price of methocarbomal shot up more than
40% in 1974 alone. Even worse, at times
methocarbomal and GG were unavailable at
any price; the costly production closedowns
that ensued "were cutting into the lifeblood
of our business," Mr. Zimmer says. He says
he decided in April 1974 that Robins "would
no longer be a pawn of the market,"
On May 16, 1974, Robert G. Watts, senior
vice president, sent a memo to the heads of
seven corporate divisions, "Mr. Zimmer has
requested that immediate attention be given
to the feasibility of the manufacture of se-
lected chemicals," the memo stated. It an-
nounced creation of a secret, high-level task
force to "be responsible for providing rec-
ommendations for compounds to be consid-
ered, acquisition possibilities, site selection
and facilities, as well as financial justifica-
tion for same,"
TWO TEAMS SET UP
The task force met June 1, 1974, and was
quickly broken down into two subgroups,
one to study the acquisition of a chemical
plant and the other to look into building one
from scratch.
The "build" unit, headed by Mr. Watts, e
tough 42-year-old ex-Navy officer, sought out
six process engineering firms and was ap-
proached by dozens more. "These engineers
have a grapevine that's incredible," Mr.
Watts says. "You talk to one and they all
come along," In early October the group
settled on Lockwood-Greene Engineering
Co., Atlanta.
Iii March 1975, Lockwood Greene delivered
to Robins an inch-thick, $16,000 volume that
detailed design criteria, the chemical-mak-
ing process, an equipment list, environ-
mental impact statement, project schedule,
drawings and most important, a preliminary
cost estimate. The engineering firm calcu-
lated that a plant making 200,000 pounds of
GG and 500,000 pounds of methocarbomal
annually, Robins' projected 1978 needs,
would cost $6 million, plus 30% or minus
20 90 .
Robins' officers calculated that the same
amounts of chemicals would cost $6,050,000
if purchased on the open market, but that it
could be manufactured for only $3.5 million.
Based on a $6.2 . million capital outlay ($6
million for the plant and $200,000 for the
land), the pretax return on investment
(compared with continued outside pur-
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S 18960 CONGRESSIONAL RECORD -SENATE October 30, 1975
chases) would exceed 40%, and the invest-
ment would pay for Itself in less than three
years.
Meanwhile, consultants for the "buy"
team identified over 100 existing plants that
seemed to meet Robins' needs. Of these,
about 20 were actually contacted by the
company and three strong candidates ulti-
mately emerged. One was Hexagon Labora-
tories Inc., New York, which later was ac-
quired by the West German concern that
eventually -became Robins' partner in the
joint venture In Petersburg.
Hexagon was up for sale and it was al-
ready a big supplier of methocarbomal to
Robins. Little plant modification would have
been necessary. "But Hexagon was In the
Bronx and there was no room for possible
expansion." Ernest L. Bender Jr., senior vice
president of Robins, says. Also, a Robins
spokesman notes. "Hexagon's plant was un-
ionized, and we've always tried to steer clear
of unions." The buy group finally settled on
a plant in Sheboygan, Wis.
The "build" and "buy" units developed a
keen rivalry, with personal reputations and
egos becoming involved in the outcome.
"The acquisitions people were desperate for
something big," Mr. Watts asserts. "They
really wanted another feather in their cap."
One member of the acquisition team retorts
that Mr. Watts wanted to build a plant "so
that he could have another picture hanging
on his wall." (Mr. Watts' office wall bears
architectural renderings of plants he has
been responsible for in Puerto Rico and
Richmond.)
Mr. Zimmer minimizes the effect of the
rivalry; he says he had hoped for just such
"creative tension." But in the meantime,
more serious questions were being raised-
including doubts about whether Robins
should get into the chemical business at all.
A CASE OF COLD FEET
Carl Lumsford, vice president in charge
of chemical research-and one of the discov-
erers of methocarbomal in 1958-had begun
to develop cold feet about the project. He
suggested that the proposed plant be scaled
clown by about half.
"You just don't go out and build a chemi-
cal plant," he recalls saying. "It takes ex-
pertise and technical know-how. Since this
was our first move into a new area, I thought
it would be well to leave room for a third
party to supply us, There's alwaysthe pos-
sibility for a plant going down because of
fire or some other catastrophe."
Mr. Lunsford's hesitation came on the
heels of a study commissioned by Robins
from Chase Manhattan Bank. The Chase
analysis argued that Robins shouldn't go
through with the project because of the cycl-
ical nature of the chemical business. By
prudent hedging operations-buying sup-
plies when prices were low Robins could
assure itself of the necessary raw materials,
they said.
Mr. Zimmer, still vividly remembering the
1973 oil embargo, rejected the Chase argu-
ment out of hand. "Any savings we'd obtain
would quickly be lost if supplies were inter-
rupted," he says. Of Mr. Lunsford's objec-
tions, Mr. Watts says-dryly, "I think our sup-
pliers convinced him,
Ironically, however, it was Mr. Lunsford's
vision of the course Robins should take that
came closest to what actually happened-
although not necessarily for the reasons he
cited.
ECONOMIC ILLS NOTED
Planning for the project was coming to
a head in the midst of a precipitous decline
in the economy. "Some of our meetings were
pretty strained," one insider recalls. "Infla-
tion was rushing along and the recession
just kept getting worse. Some of us felt we
were just spinning wheels, that the state of
the economy-the sheer uncertainty of it
all-would preclude a big commitment of
capital!,
G. E. It. Stiles, vice president and treasurer,
says those who were worried about the reces-
sion were overruled because a company can't
look at short-term fluctuations in determin-
ing capital spending policies. "This is long-
term planning," he says. A recession, he adds,
"is a one-to-three year thing. When you're
talking about a new plant, you're talking 10
to 20 years" Besides, Robins was able to
minimize the recession's impact because a
strong balance sheet allowed the company
to finance the project internally rather than
compete for funds on the capital markets.
By last March, the management team had
studied its "build" and "buy" options for
about 10 months, and a showdown was slated.
The proponents of purchasing the Sheboy-
gan plant made a persuasive presentation.
The pext day, the "build" forces counter-
attacked with an equally persuasive pro-
posal, aided by an artist's sketch, for a cus-
tom-built facility In Virginia. The costs were
about equal.
DECISION: TO BUILD
The decision, by Mr. Zimmer in consulta-
tion with Chairman E. Claiborne Robins Sr.,
went in favor of the "build" team. "We
really wanted that damned plant in Vir-
ginia," Mr. Zimmer says, "That way we
can run down and touch it just to make sure
it's there every once in a while." Virginia
industrial development officials were asked
to help choose the site; they assigned the
project the code name "Operation Dogwood"
and soon narrowed the search to nine pos-
sible locations.
But no sooner had the decision seemingly
been made between "buy" and "build" than -
a third possibility arose. Hexagon Labora-
tories, the Bronx concern considered as a po-
tential purchase possibility, had been ac-
quired in February for $4 million by Boeh-
ringer Ingelheim, a big pharmaceutical and
chemical concern based in Ingelheim, West
Germany. Subsequently, Hexagon officials
had gotten wind of Robins' plans for a cap-
tive source of methocarbomal and GG, and
two Hexagon representatives were dis-
patched to Richmond in April in an effort to
keep the Robins' business.
Hexagon offered to build a plant in Vir-?
ginia and negotiate a long-term sales agree-
ment with Robins. Robins, which had gone
this far down the road, demurred. Hexagon
offered Robins an equity interest in the
plant as a sweetener. Mr. Zimmer struck:
"I said 50% or nothing at all. Take it or
leave it."
"I almost dropped my teeth," recalls Mr.
Lunsford, who was at the meeting and saw a
joint venture with an experienced chemical
concern as the solution to his fears about
building a chemical plant. Mr. Lunsford
worried that Mr. Zimmer's insistence on a
half interest might be unacceptable to Boeh-
ringer.
But Boehringer eventually agreed to the
transaction. Most of the plant's output would
be sold to Robins, profits would be divided.
equally and Robins would have an option to
buy Hexagon's share after an unspecified
period of time. The package neatly disposed
of nearly all the objections that various Rob-
ins factions had about the build or buy op-
tions. Among other things, for example, it
will allow Robins to hold .capital spending
next year to about $7 million, the same as
this year, because Robins' share of the proj-
ect will result in an outlay of only about $1.5
million to $2 million next year, with the re-
mainder in 1977. The plant is slated to open
in early 1978.
"We'd have probably gone ahead alone and
built a new plant," Mr. Zimmer says, "but
the joint venture sure makes us feel more
confident about this project."
REMOVING PUBLIC LANDS FROM
ACCESS FOR MINERAL EXPLORA-
TION AND DEVELOPMENT
Mr. STEVENS. Mr. President, in recent
years we have seen an accelerating trend
toward removing our public lands from
access for mineral exploration and devel-
opment. This is a dangerous course in my
opinion.
As less lands are left available for sen-
sible development, the inevitable results
will be twofold: a serious shortage of
domestic minerals and an increasing de-
pendence upon foreign sources. As the
oil embargo should have taught us, de-
pendence upon foreign sources for criti-
cally needed resources - is extremely ill-
advisable. We cannot afford it with oil
and we cannot afford it with minerals.
Recently, two employees of the Depart-
ment of the Interior, Gary Bennethum
and L. Courtland Lee, completed on their
own time an extensive survey of recent
public land withdrawals which elim-
inated land from the mining and mineral
leasing laws. Their report entitled, "Is
Our Account Overdrawn?" appeared in a
recent special edition of the Mining Con-
gress Journal. The complete report is
excellent and I recommend it to the -
Senate. I ask unanimous consent that
the portions of the article relating to
Alaska and the summary be printed in
the RECORD.
There being no objection, the per-
tinent portions of the article were or-
dered to be printed in the RECORD, as
follows :
ALASKA NATIVE CLAIMS SETTLEMENT
The land use and ownership situation in
Alaska is extremely complicated and requires
some historical background to fully under-
stand what has happened to our account in
recent years and what will likely happen in
the future.
By the timeit entered the Union in 1959,
only 600,000 acres of land in Alaska were in
private ownership. The remainder was public
domain which included significant withdraw-
als from the mineral laws, mostly in military
reservation, national parks, wildlife refuges
and petroleum reserves.. As the state started
to select lands granted to it in its statehood
entitlement, native groups protested that the
state was selecting lands to which they had
rights. To protect the lands until the native
rights could be determined, Secretary of the
Interior Stewart Udall in 1966 imposed a
freeze on all Alaskan public land auctions, in-
eluding withdrawals. Pressures to resolve the
native question were intensified after the dis-
covery of oil in 1968 andculminated in pas-
sage of the Alaskan Native Claims Settlement
Act (ANCSA) of 1971, which was supposed to
end the freeze and finally settle the land
Issues.
The act effectively withdrew all unreserved
public lands in Alaska from the Mining Laws
(except for metalliferous minerals) and the
mineral leasing laws for a period of 90 days
and authorized the Secretary to make any
necessary withdrawals under the existing law
and authority to protect the land from state
and private ownership and mineral entry.
Under the act, Congress awarded the na-
tives nearly -$I billion for regional develop-
ment corporations and 40 million acres of
land to be selected from a pool of 25 town-
ships adjoining each native village. With-
drawals for villages and regional deficiencies
for villages withdrawn by the act itself termi-
nate Dec. 18, 1975; however, the subsequent
withdrawals made by the executive pursuant
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