TAIWAN RELATIONS ACT-CONFERENCE REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000100050006-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 21, 2016
• Document Release Date: October 27, 2008
• Sequence Number: 6
• Publication Date: March 29, 1979
• Content Type: OPEN SOURCE

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March 29, 1979 CONGRESSIONAL RECORD -SENATE
the youth unemployment problem, we keeping shorter hours in his restaurant
must lower the minimum wage to de- to keep up with the wage rates.
velop the creation of more entry level In a recent issue of Fortune magazine,
jobs. I do not have to tell anyone how Willard Marriott discussed the effects of
important it is for people to have a sense the minimum wage on his restaurant
of personal worth and financial inde- chains: ?
pendence. Jobs providing pocket money Over-all, we eliminated more than two
are a necessary part of growing up. The million man-hours or about 5 percent of the
money gives a young man or woman total. It's very difficult for me to be precise
freedom to buy their own lunches, go on because of the growth in our business and
dates, and experience an exhilarating the change in its mix. But we stopped hiring
sense of freedom and self-dependence. at many locations and this cuts our work
Earning this extra money teaches the force by 2 to 3 percent. Unlike many other
S 3639
CONCLUSION OF ROUTINE
MORNING BUSINESS
The PRESIDING OFFICER. Is there
further morning business? If not, morn-
ing business ,is closed.
TAIWAN RELATIONS ACT-
CONFERENCE REPORT
which helps an individual to mature. "'rants later or close them earlier. However, The PRESIDING OFFICER. The
in some cases we closed parts of a restaurant, report will be stated.
An increase in the minimum wage is opening one dining room instead of two. The not the same as an increase in welfare For years, we've been shifting to self-service legislative clerk read as follows:
payments. Wages should be paid on the salad bars in our dinner houses and other The committee of conference on the
basis of a worker's addition to a product restaurants in order to cut down the number disagreeing votes of the two Houses on the
that a buyer wants to purchase. Guaran- of waitress hours.... amendments of the Senate to the bill (H.R.
teeing a worker a set wage, and a pre- Another outrageous example was given stability inthe Wmaintain estern Pacific andlto and
raise rate, takes away all in- me by a friend who owned a flower nurs- mote continued extensive, close, and friendly
centive to excel. If everyone is assured ery in California With the constant relations between the people of the United
of a raise, then why try to do better or rises in minimum wage levels, the inter- mseates after and full the people on Taiwan, having
conference have
d to
more work than the next person, when ference and strictness of child labor laws, agreed to recommend and free o recomme end td
you will both get the same reward? And he found himself unable to keep up with their respecctive ive Hou xouses and this recom do
report, signed
when the wages increase, the costs must prices. He packed everything up and by all of the conferees.
he -.An
caoou . uaia are passea on to consumers.
So employers, employees, and consumers
lose through the minimum wage system.
The average consumer today complains
about the costs of everything. The costs
we complain about are directly tied to
labor costs.
Government-directed increases in
wages make it hard for business to hire
the inexperienced or less skilled worker.
How many businesses can afford to hire
a young, unskilled worker at the same
price of an older, seasoned worker? If you
ask anyone who wants a job but cannot
find one, I think he will tell you that it is
better to have a job at any price than no
job at $2.90 an hour. These unreasonable
rates are reasons why unemployment
rates remain high, even during prosper-
ous times, and why public sector jobs
are proposed by the same legislators who
caused the problem by increasing the
mini
mum wage.
Periodically, but with amazing regu-
larity, I hear from various small business
people who have their own experiences
to relate in this regard. One person, who
owns a supper club In Wisconsin, said
that because of the minimum wage level,
his profits In the restaurant have disap-
peared and he is losing money for the
first time In 32 years. His prices are up
by 15 to 20 cents per item. After Labor
Day of this year, he plans to close down
his lunch service. He said to me, "We
used to have three salad girls and now
the have two. They'll simply have to get
the work done." Teenagers used to make
tsp half of his staff, but now they only
account for about 10 percent.
.. Another restaurant owner in Z ilissouri
wrote to me: "I have not had to lay any-?
one off, but I have cut back on the num-
ber of employees i do keep at any one
time. We used to have five or six people
for the day shift-now we have three or
four. Our girls used to average about 20
or 30 hours a week. Now they average 15
to 20 hours." This restaurant owner is
where labor is cheaper. Thus, we have an -lee rttl a1u1NG OFFICER. Without
example where a perfectly good Ameri- objection, the Senate will proceed to the
can business moved to another country consideration of the conference report.
because of the costs and regulations in- (The conference report is printed in
volved. We are losing good American the House proceedings of the RECORD of
businesses to foreign countries-to Tai- Maxch 24, 19179.)
wan, to Singapore, to Mexico, to Guate- Mr. CHURCH. Mr. President, this con-
mala, and elsewhere-because it is too over a report is a vast improvement
expensive for them to,abide by our laws. over the legislation initially proposed
These are just a few of the examples by the administration. The measure as it
I have received from people all over the now stands clarifies many uncertainties
country. Business and employees alike and ambigugities concerning trade, legal
are being hurt by these increases in the and economic issues. It includes a secu-
minimum. wage, and I think my col- rity clause designed to reassure Taiwan.
leagues in the Senate should give serious And it provides for comprehensive con-
thought to our past actions on the mini- gressional oversight of U.S. relations
mum wage legislation. How much will with Taiwan. The test we applied in de=
consumers take before they realize that ciding each of the many complex and
it is we in Congress who recognize the difficult decisions before us was not the
problem, yet do nothing about it? I, for views of Taiwan or the People's Republic,
one, do not want to be counted among but the national interest of the United
those who have supported increasing the States. I - believe that this measure ad-
minimum wage, thus adding to our in- vances our national interest.
flation problems. I hope that my fellow Mr. President, I acknowledge the pres-
Senators will consider all the effects of ence of the ranking Republican member
our constant meddling in the private in- on the committee, the able Senator from
dustry sector, especially the disastrous New York, Mr. JAVITS. His work in draft-
effects on young people of the minimum mg this legislation was indispensable. I
wage, and support me in my campaign think he shares with me a general sense
against it. of satisfaction with the compromise we
ROUTINE MORNING BUSINESS
The PRESIDING OFFICER. Under
the previous order, there will now be a
period for the transaction of routine
morning business for not to exceed 15
minutes with statements therein limited
to 5 minutes each.
The Chair, using his prerogative as
a Senator from the State of Kentucky,
suggests the absence of a quorum, and
the clerk will can the roll.
The second assistant legislative clerk
proceeded to call the roll.
Mr. CHURCH. Mr. President, I ask
unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, it is so ordered.
were able to hammer out in conference
with the Representatives of the House of
Representatives.
The purpose of this legislation, Mr.
President, is to authorize unofficial, non-
governmental relations with Taiwan. It
is simply an adjustment to our laws to
permit the maintenance of commercial,
cultural, and other nongovernmental re-
lationships in the new circumstances
that exist after normalization. I intend
to describe the principal features of this
measure in a moment, but before doing
so, I believe that this point needs to be
reiterated: the relationship provided for
in this bill-however extensive, however
close, and however friendly-is not a
government-to-government relationship.
It is a relationship between two private
entities-the American Institute in Tai-
wan and the corresponding Taiwan in-
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CONGRESSIONAL RECORD -SENATE March 29, 1979
strumentality-which will deal with each courts the law now applied on Taiwan; if Mr. President, I have described these
other in a manner reflecting the unoff- the law applied on Taiwan were to particular provisions of the conference
cial ties between the people of the United change, a different law would then be ap- report at some length because it is vitally
States and the people on Taiwan. The plied by the United States. important that everyone understand
unofficial nature of this relationship is Nor is recognition implied in the "se-, that this legislation is entirely consist-
evident throughout the act-beginning curity" language appearing in section 2 ent with the joint statement issued De-
with the title, which states that the pur- and 3 of this measure. The conference cember 15 by the United States and
pose of the act is to promote people-to- committee intended that this carefully China. In that statement the President
people relations. drafted language support the President's agreed to recognize the Peking govern-
The central provision in this regard is statement of December 15, 1978, that the ment as the sole legal government of
subsection (a) of section 2. It recognizes United States retains an interest in the China. This was his prerogative under
overnmental relations be- peaceful settlement of the Taiwan issue our constitutional system, and it is not
ffi
ial
th
t
, g
a
o
c
tween the United States and the gov- by the Chinese themselves. Nothing in within the power of the Congress to
Th
h
d
i
i
C
e
ongress
on.
e
rturn t
at
ec
s
erning authorities on Taiwan have been these provisions was intended to be in- ov
terminated. It is upon this premise- consistent with the mutually agreed does not have the authority-constitu-
stated at the outset so that there can be terms of normalization. tionally-to recognize a given govern-
no'mistake as to it importance-that the The cornerstone of our new unofficial ment or to establish government-to-
rest of the act is based; all other pro- relations with Taiwan is the American government relations with a given
visions in the act- must be interpreted Institute in Taiwan. This is a private, country after the President has termi-
in its light. I refer, in particular, to use nonprofit corporation whose employees nated those relations. The Congress can-
of the term "Taiwan." The Senate ver- are not employes of the U.S. Government. not do so, and the Congress will not have
sion referred throughout the bill to the This is an extremely important prin- done so in enacting this legislation. It
"people on Taiwan" to make clear that ciple, and is made explicit in section 11 will simply have authorized the mainte-
was the people-and not the govern- (c) of the conference report. Relations nance of commercial, culutral and other
it
ing authorities-with whom relations with Taiwan will be conducted through relations without official Government
were being continued, and to make clear the Institute, and refernces to it thus ap- representation and without diplomatic
as well that the bill did not address the pear throughout the bill. _ relations.
issue of Taiwan's international legal Section 7(a) (3) of the conference re- I should like to turn now, Mr. Presi-
identity. port, for example, authorizes Institute dent, to a summary of the contents of
These same purposes are carried out employees to perform certain acts "such this conference report. The main provi-
by section 2(a) of the conference re- as are authorized" to be performed for sions of.the conference report deal with,
port, which leaves no doubt concerning consular purposes. Those words are criti- first, peace and security in the western
the termination of official relations with cally important: they make clear that Pacific; second, the continued applica-
the governing authorities on Taiwan. I the functions being caried out are not bility of U.S. laws with respect to Tai-
would point out also that nowhere does those of official governmental represent- wan despite the absence of diplomatic
the conference report address the ques- atives. Similarly, section 10 requests that relations and recognition; third, the con-
tion of whether Taiwan is a country or the President extend to the Taiwan in- tinuatioh in force of all treaties and
nation under international law. Al- strumentality the same number of offices agreements not specifically terminated
though the term "Republic of China" and complement of personnel as were according to law; fourth, legal rights,
does appear several times-most notably operated previously. Two points bear such as the capacity of Taiwan, its peo-
in the definition of Taiwan-each such emphasis : that these are private offices, ple, and entities established by their
use contains a reference to past U.S. not consulates, and that they are man- law to sue and be sued in U.S. courts;
recognition, and none implies current ned by "personnel," not diplomats or fifth, trade and economic relations be-
governmental relations. I will elaborate governmental officials of any sort. tween the United States and Taiwan,
on this point in a moment, but before do- Likewise, the immunity that the Con- and property rights of Taiwan; sixth,
ing so, I would point out that several gress requests be extended in this section the staffing, authority and responsibili-
other provisions must also be viewed in is not absolute immunity-not the full ties of the American Institute in Taiwan
the same perspective. and complete immunity extended official to conduct relations with the people on
Section 4(b) (1), for example, treats diplomats-but functional immunity. Taiwan as well as the status of its un-
Taiwan as a "country" for purposes of which would extend only to acts per- official Taiwan counterpart; and seventh,
U.S. law. This is a technical drafting formed in the course of one's duties. congressional oversight regarding these
matter, really; certain statutory au- Finally, there is the definition. Sec- relations in general, and of the activities
thorities needed to be extended to con- tion 15(a) refers to the "governing au- of the American Institute in Taiwan in
tinue the program.eligibility of Taiwan, thorities on Taiwan recognized by the particular.
and the simplest and cleanest way of United States as the.Republic of China It is not necessary to go into all of
doing that was to treat Taiwan as a prior to January 1, 1979. * * *" This is these matters in detail, although I do
country under those statutes. There is an historical reference with which no want to discuss a few. However, I want
absolutely no indication in this provi- one can argue: It merely acknowledges- to emphasize that both the Senate and
sion that the United States views Tawian for purposes of legal clarity in identify- the House have been exceedingly thor-
as a separate country; if anything, it ing the authorities to which the section ough and careful in their, consideration
could be argued that the need to include refers-that the United States recog- of all of the issues involved, in view of
a provision' such as this implies exactly. nized the Republic of China prior to the great importance of this legislation
the opposite. But that question, as I January 1, 1979. It does not suggest that and the unique situation it addresses.
stated, is one that is not addressed in that recognition continues-indeed, the We have combined clear statements of
this legislation. definition expressly notes that recogni- principle with detailed provisions on im-
The portant matters, and have done so in,
1979
1
Januar
d
i
t
.
y
,
on
e
na
Section 4(b) (4) is also a somewhat tion term
technical legal provision relating to the reference is thus comparable to other a way that provides firm policy guid-
question of which law is to be applied references to the Republic of China ap- ance combined with operational flexibil-
in U.S. courts. It provides- that, when the gearing in the conference report, such as ity.
circumstances require, that law is to be that contained in section 4(c), which One of the issues that received ex,-
the law applied by the people on Taiwan. relates to international agreements. tensive consideration was Taiwan's secu-
This provision, like other provisions, in There, as elsewhere, the reference ap- rity. The provisions dealing with this
no way constitutes recognition of any pears only to make clear, legally, which matter in the conference report repre-
government and in no way impiles offi- governing authorities are being referred sent a constructive compromise between
cial relations. It simply takes cognizance to; there is absolutely no intent to sug- the language of the acts passed by the
of the undisputed reality that there is a gest-in section 4(c) or anywhere else Senate and the House. The conference
law applied on Taiwan. It does not freeze in the bill-that the United States con- report spells out that peace and stability
the United States into the position, ob- tinues to maintain official relations with in the area are in the political, security,
viously, of forever applying in its own the people on Taiwan. and economic interests of the United
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March 29, 1979 CONGRESSIONAIL RECORD- SENATE
States; that any effort to determine the
future of Taiwan by other than peaceful
means, including boycotts or embargoes,
would be a threat to the peace and secu-
rity of the western Pacific and of grave
concern to the United States; that the
United States will maintain its capacity
to resist any resort to force or other
forms of coercion that would jeopard-
ize the security, or-the social or economic
system, of the people on Taiwan; and
that the United States will make avail-
able to Taiwan defense articles and serv-
ices in such quantity as may be necessary
to enable Taiwan to maintain a sufficient
self-defense capability.
This should be very reassuring indeed
to the people on Taiwan, for it specifies
that the United States will oppose any
form of external coercion directed
against Taiwan. And it provides that we
will assist Taiwan to maintain its own
defense capability, which the Israelis
have demonstrated is the best assurance
of any nation's security. These provi-
sions, together with the President's De-
cember 15, 1978, statement, our im-
proved communications with the PRC re-
sulting from normalization, the lack of
any significant amphibious capacity on
the part of the People's Republic, and the
fact that any PRC threat directed
against Taiwan would dash its hopes for
better relations with the United States,
Japan and Western Europe-all these
elements combine to make it clear that
Taiwan's security is not endangered.
The conference report also clearly pro-
vides for Congressional oversight of these
relations and of the operations of the
American Institute in Taiwan. The Insti-
tute has the authority and the responsi-
bility to help American citizens carry out
their many kinds of dealings with Tai-
wan, which will enable our commercial
and cultural relations to continue to ex-
pand. The legislation provides that
agreements and transactions made by or
through the Institute shall be subject to
the same congressional notification, re-
view, and approval requirements and
procedures as would normally apply. The
conference report also places on the
President and the Secretary of State spe-
cific reporting requirements concerning
the Institute's operations and economic
relations between the United States and
Taiwan. These provision were taken
from the act passed by the Senate. They
will enable the appropriate committees
of the Senate and House of Representa-
tives to carry out the responsibilities as-
signed them in the Act passed by the
House-the responsibility to monitor the
implementation of this legislation, and to
,monitor developments in U.S. relations
with Taiwan under these unique ar-
rangements.
In connection with these oversight pro-
yisions, Mr. President, I submit for the
RECORD a letter from the Department of
State concerning arms exports to the
People's Republic of China and I ask
unanimous consent that it be printed in
the RECORD at this point.
There being no objection, the letter
was ordered to be printed in the RECORD,
as follows:
DEPARTMENT OF STATE,
Washington, D.C., March 19, 1979.
Hon. FRANK CKOECH,
Chairman, Senate Foreign Relations Com-
mittee
Dias Mn. CHAnu AN: In today's proceed-
ing of the committee of conference on H.R.
2479, the question was raised as to whether
the Congress would be informed at least
thirty days in advance of the issuance of any
license for significant arms export to the
People's Republic of China. .
It is the policy of the United States, as
reflected in section 126.01 of the Interna-
tional Traffic in Arms Regulations, not to li-
cense arms exports to the People's Republic
of China.
We do not contemplate any change in this
policy. In view of the concerns expressed by
the conference committee, however, I can as-
sure you that the Department of State would
not license significant arms exports to the
People's Republic of China without providing
the Congress at least thirty days' prior notice.
This assurance is in addition to the report-
ing requirements of existing law, which re-
quires thirty days' prior notice to the Con-
gress of the proposed issuance of licenses for
the export of major defense equipment sold
for $7 million or more, or other defense
articles or services sold for $25 million or
more.
I trust that the foregoing assurance meets
the concerns expressed in today's meeting of
the conference committee.
Sincerely,
DouGLAS J. BENNET, Jr.,
Assistant Secretary for
Congressional Relations.
Mr. CHURCH. It is not for the United
States to determine Taiwan's destiny.
However, we do have an important in
terest that this issue be resolved peace-
fully and in a manner that takes into
account the will of the people on Taiwan.
It is encouraging that the People's Re-
public of China has adopted a flexible
approach toward this issue in recent
months. We should no nothing to dis-
courage the Chinese leaders from con-
tinuing along this course.
Mr. President, this measure makes
clear to the People's Republic of China
that the United States has a deep in-
terest in a peaceful resolution of the
Taiwan issue. It also makes clear to the
people on Taiwan that we are not aban-
doning them by providing for the con-
tinued supply of defense articles and
services, and by establishing a sound
legal and economic basis for continued
relations between the United States and
Taiwan.
I believe that this conference report
will enable the United States to con-
tinue a close and friendly relationship
with the people on Taiwan while simul-
taneously developing a mutually bene-
ficial relationship with the People's Re-
public of China. I therefore urge the
Senate to approve the conference report.
Mr. President, I now defer to the dis-
tinguished Senator from New York (Mr.
JAVITS), the ranking Republican mem-
ber on the committee.
I note that a valiant member on the
Democratic side, the Senator from Ohio
(Mr. GLENN) has come to the floor, and
I invite him to take charge of the man-
agement of H.R. 2479, while I am re-
quired to attend a meeting called by the
majority leader.
53641
Mr. JAVI'I'S. Mr. President, before our
colleague leaves, may I first say that I
join in what he has said, and wish to
express my support for this conference
report and my deep gratification for this,
the first substantial work of our part-
nership as chairman and ranking minor-
ity member of the' Foreign Relations
Committee. We have worked harmoni-
ously, and I believe effectively, together
to effect the accomplishment of the high
purposes of our country. I thank him
very much.
Mr. CHURCH. I thank the Senator.
Mr. JAVITS. Mr. President, the Tai-
wan Relations Act, which is the name of
this act, is in my judgment an equitable
blending of the House and Senate ver-
sions of this complicated legislation deal-
ing with a very complicated problem, and
therefore, a bill which has to be read
carefully to be clearly understood. Al-
though the House and Senate bills con-
tained significant differences of ap-
proach and technique, they reflected a
close identity of purpose: To provide the
necessary legislative basis for continuing
close, unofficial relations with Taiwan
within the framework of the Sino-Ameri-
can joint communique normalizing dip-
lomatic relations between the United
States and the People's Republic of
China.
In this respect, the intent of the House
and the Senate were the same. Both bills
sought to provide legislatively, for the
continuation of commercial, cultural, and
other relations between the people of the
United States and the people on Taiwan
in the wake of the President's actions
recognizing the Government of the Re-
public of China on Taiwan.
Neither bill sought to reestablish offi-
cial relations between the United States
and the Republic of China on Taiwan;
Congress, as Senator CHuac r has pointed
out, does not have the authority to do
that even if it wanted to do so. Neither
bill challenged the basic understandings
on normalization of relations with the
People's Republic of China.
The bill which emerged from the con-
ference authorizes a full range of rela-
tions with Taiwan on an unofficial basis.
Existing rights and obligations are pro-
tected, existing programs are preserved.
The strength of the ties between the peo-
ple of the United States and Taiwan is
maintained.
A 'strong statement of the United
States' national interest in Taiwan's se-
curity is in the bill as it emerged from
conference.
This is the principal feature, in my
judgment, which the Congress has added
on this matter. The People's Republic of
China, through its officials, is said to be
jumping up and down about this legis-
lation. Mr. President, I think by now they
ought to be sophisticated enough to
understand that foreign policy in this
country is made by the President but
with the advice and consent of the Con-
gress, and, therefore, the Congress has
a right to insert, in advising and con-
senting, the conditions which it deems
appropriate to Its advice and consent.
That is what we did here,
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CONGRESSIONAL RECORD -SENATE March 29, 1979
Mr. President, when the legislation was
debated I made it very clear that great
nations cannot bluff and, that therefore
if the PRC decided that it could not
normalize relations with the United
States because of the provisions which
we felt compelled to make-unofficial
but very real in terms of our obligations
and commitments to the people on Tai-
wan-that we were not fooling about
these, and that if they were unsatis-
factory, then there obviously could not
be normalization.
Therefore, while I recognize and re-
spect in full the protests and the feelings
of the Government of the People's Re-
public, I point out that this simply is
inherent in what American policy, in our
judgment, must be. We are not asking
them to agree with it; we are only asking
them to accept it, and accept it they do
when'they continue the normalization of
our relations.
While I pay serious attention to how
they feel about it, I think they must
understand that this is us, this is the
United States of America, in its total
governmental manifestation. That in-
cludes a very reasonable and very neces-
sary obligation respecting the security
of the people on Taiwan.
This legislation is only the first step in
a series of steps which maybe taken in
the process of normalizing relations. We
must still resolve the issue of past claims
by American citizens against the Govern-
ment of China; we must consider
whether to grant most-favored-nation
trade treatment, offer expanded credits
and approve a trade agreement with the
People's Republic. It, is in the interest of
both of our countries to continue to pro-
ceed along this path of normalization,
but each step of the way must be a care-
ful and deliberate one with Congress
fully involved and contributing to the
outcome. This is the nature of our sys-
tem, and the very essence of the democ-
racy with which the PRC has chosen to
establish a new relationship. We might
as well get used to each other right from
the beginning.
In this connection, let me quote from
the Washington Post editorial of March
27, 1979:
It must have come as something of a shock
to the Chinese to discover that the arrange-
ments they had laboriously worked out with
the executive branch were tampered with
by the legislature. Welcome to America. 'Nor-
malization' means not merely regularizing
official relations but opening up those rela-
tions to the normal buffeting of the Ameri-
can political process.
I ask unanimous consent that the com-
plete text of this editorial be printed in
the RECORD at this point, along with two
other articles, one dated March 25, 1979,
by Jay Mathews, and the other dated
March 26, 1979, by David Binder.
There being no objection, the articles
were ordered to be printed in the RECORD,
as follows:
[From the Washington Post, Mar. 27, 1979]
PEKING'S POLITICAL EDUCATION
The People's Republic of China has now
pronounced "unacceptable" the legislation
in which the Congress sought to strengthen,
beyond the administration's measure, the
formal assurances the United States is offer-
ing Taiwan. Most of the congressional in-
crements were a good idea; and it's not such
a bad idea, either, that Peking has been af-
forded this occasion to deepen its political
education.
The increments do not alter the basic
framework of normalization, and this is to
the good. But by tone as much as by word,
they make explicit a certain caution about
China's ultimate intentions and a consider-
able degree of sympathy for Taiwan. In other
words, they make explicit what we take to be
the feelings of most Americans. It must have
come as something of a shock to the Chinese
to discover that the arrangements they had
laboriously worked out with the executive
branch were tampered with by the legislature.
Welcome to America. "Normalization" means
not merely regularizing official relations but
opening up those relations to the normal
buffeting of the American political process.
Although Peking is upset, it does not ap-
pear to be so upset that it will react rashly,
least of all, say, by "denormalizing." Only a
handful of those congressmen who supported
the new language could have wished to pro-
voke that result. American diplomats are
working overtime to limit the damage. But
we think it can only strengthen Chinese-
American relations for the long run for the
two countries to learn that their political
systems, and not alone their diplomatic es-
tablishments, must meet and interact.
The Chinese are not shy about defining
their own national interest. Americans should
be no less forthcoming. This is by way of
saying that Peking should consider the ef-
fect its invasion of Vietnam had on con-
gressional consideration of the Taiwan leg-
islation. The spectacle of China disregard-
ing American urgings and sending troops
across a border into a neighboring country
surely helped spur Congress to strengthen
the assurances being offered Taiwan. We
would even go a step further and suggest
that that spectacle served as a useful brake
on any incipient American tendency to re-
gard normalization as a wholly unmixed
blessing for the United States in its con-
tinuing attempt to "contain" Soviet power.
Normalization is desirable, we believe, but,
like any other political act, it carries limits
and risks. It is better that Americans pro-
ceed with a knowledge of what the. risks
are.
[From the Washington Post, Mar. 25, 1979]
PEKING PROTESTS U.S. LEGISLATION ON TAI-
WAN TIES
(By Jay Mathews)
HONG KONG, March 24.-Peking has pro-
tested U.S. legislation dealing with Taiwan
as doing "great harm" to future relations. It
is the first such Chinese warning to Wash-
ington made public since the two countries
opened full diplomatic ties Jan. 1.
An official New China News Agency dis-
patch released today said Chinese Foreign
Minister Haung Hua told U.S. Ambassador
Leonard Woodcock March 16 that bills passed
by both houses of Congress were "unaccepta-
ble to the Chinese government."
[The State Department confirmed Satur-
day that Woodcock had been called in by
Huang but said it had no comment on the
matter.]
A separate official Chinese news agency
story described the portions of the nearly
identical House and Senate bills committing
the United States to Taiwan's security as
particularly objectionable to Peking. The
story also criticized clauses recognizing the
existence of a separate government on Tai-
wan and barring Peking from taking over
property of Taiwan's former embassy in
Washington.
Diplomats had expected China to make
some protest about congressional strengthen-
ing of security guarantees for Taiwan. Pe-'
king considers the' island to be part of its
territory, temporarily controlled by an illegi-
timate Nationalist Chinese leadership. It is
uncertain, however, whether Peking will go
so far as to halt or delay developing diplo-
matic, cultural and trade ties with the Unit-
ed States to underline its displeasure.
The Chinese agency said Huang Hua told
Woodcock, "If the bills are passed as they
are worded now, and are signed into law, r.
great harm will be done to the new relation-
ship that has just been established between
China and the United States."
Huang asked the U.S. government to en-
sure that the Taiwan legislation does not
violate Washington's agreement on normal-
ized relations with Peking, but the Chinese
agency gave no hint what action China would
take if President Carter signed what it con-
sidered unacceptable legislation.
The Chinese protest came shortly after an
attack on capitalism and the U.S. human
rights campaign in a Peking newspaper that
was in sharp contrast to glowing descriptions
of American life found in the official Chinese
media in recent months. Recently, American
businessmen have found negotiations about
projects in China slowing down.
The changes seem related, however, to an
internal reassessment of China's sudden poli-
tical liberalization and foreign trade growth
over the last several months, rather than to
any reaction to American efforts to retain
some commitment to Taiwan's 17 million
people.
Chinese Vice Premier Deng Xiaoping (Teng
Hsiao-ping) reportedly complained at a
closed-door party meeting March 16, the same
day that Huang met Woodcock, of earlier
Peking wallposters that had asked President
Carter's help in improving China's human
rights record.
An article in the Peking Daily on Thursday
appeared to follow this theme, criticizing
"pertain young comrades" who "will beg the
support of imperialism" in their campaign
for human rights. This showed "lack of
patriotism," the articles said.
The newspaper argued that "privileges"
still remained in the United States despite
its efforts to "show off, its human rights." It
described capitalism as a "mercenary slave
system of unemployment, police persecution,
suicides, prostitution and so on."
Huang told Woodcock the bills passed by
the U.S. Congress "contravene the principles
agreed upon by the two sides" when Wash-
ington and Peking announced Dec. 15 their
formula for ending 30 years of diplomatic
estrangement. Huang appeared to be refer-
ring particularly to the U.S. promise to end
its mutual security treaty with Taiwan and
end all official ties with the island.
The congressional bills are designed to con-
tinue American trade, cultural and other ties
with Taiwan through creation of an unoffi-
cial American Institute in Taiwan as a sub-
stitute for the U.S. embassy. Following a
system used by the Japanese when they
broke relations with Taiwan in 1972, the in-
stitute is to be staffed by U.S. foreign serv-
ice officers and other U.S. personnel who will
temporarily resign from government serv-
ice while they work in Taiwan but generally
perform the same duties they did as embassy
staff.
Carter administration spokesmen assured
Congress that Peking was not interested in
and not militarily capable of taking Taiwan
by force, and that no guarantees of the is-
land's security were necessary, but Congress
still insisted on adding language that Peking
considers to be interference in its relations
with one of its provinces.
The Chinese news agency singled out lan-
guage in the Senate bill declaring continued
U.S. capacity "to resist any resort to force
or other forms of coercion that would jeopar-
dize the security, or social or economic sys-
tem of the people on Taiwan."
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March 29, 1979 CONGRESSIONAL RECORD -SENATE
The Chinese agency protested parts of the
bill that said Taiwan authorities would be
considered a "foreign government" under any
other applicable U.S. laws.
It complained of another clause that said
ownership of the spacious and valuable Em-
bassy grounds in Washington would not be
affected by normalization of relations with
Peking.
Taiwan turned the properties over to a
group called-"The Friends of Free China" in
December, but the State Department said it
would support Peking if it chose to bring
suit seeking ownership as the recognized
` government of China.
The Chinese news agency said the embassy
properties "should be legimate properties of
the People's Republic of China."
[From the New York Times, Mar. 26, 1979]
PLEDGE TO TAIWAN UPSETS THE CHINESE
(By David Binder)
WASHINGTON, March 25.-A stiff protest by
the Chinese Government against legislation
that provides strengthened United States
security guarantees for Taiwan has created a
predicament for President Carter, Adminis-
tration officials said today.
The protest was delivered to Leonard Wood-
cock, the American Ambassador to China,
on March 18 by Foreign Minister Huang Rua
and repeated here last week by Chinese Em-
bassy officials on a visit to the State De-
partment.
President Carter must seek to soften the
Chinese attitude without annoying the Sen-
ate and House, which completed a conference
committee bill on .the Taiwan legislation last
week and sent a report on the compromise
legislation to the White House, Administra-
tion officials said.
The Peking Government published not only
an announcement that Ambassador Wood-
cock had been summoned to receive the pro-
test, but also issued a dispatch via the of-
ficial New China News Agency that described
the American legislation as "unacceptable to
the Chinese Government."
FIRST PROTEST SINCE TIES SET UP
The Administration officials said that the
Taiwan protest was the first such complaint
by China since full diplomatic relations were
opened on Jan. 1.
State Department officials said that they
were not surprised by the Chinese protest,
but had no other comment. White House of-
ficials also declined to comment or to in-
dicate the President's reaction.
Mr. Carter had proposed that Congress
adopt legislation that would enable the
United States to maintain unofficial relations
with Taiwan while taking up diplomatic
ties with Peking, but at the same time the
White House declared that it opposed word-
ing that would give official character to the
Taiwan relationship.
The compromise wording that emerged
after lively debate in Congress would au-
thorize the United States to continue social
and economic relations with the Chinese
Nationalist Government on Taiwan through
a new nonprofit corporation to be called the
American Institute on Taiwan.
CLOSE AND FRIENDLY RELATIONS
The Senate bill declared that United States
policy would be "to maintain extensive, close
and friendly relations with the people on
Taiwan" and "to consider any effort to re-
solve the Taiwan issue by other than peaceful
means a threat to the peace and security of
the Western Pacific area and of grave con-
cern to the United States." In addition, the
Senate bill, whose wording has largely been
retained in the conference legislation, would
require the United States "to assist the peo-
ple on Taiwan to maintain a sufficient self-
defense capability through the provisions. of
arms of a defensive character."
The Senate's version of the bill passed on
March 13, three days before the Chinese pro-
test, in a 90-to-6 vote, while the House en-
dorsed its version, 345 to 55. The conference
legislation, which resolved the differences be-
tween the two bills, was filed yesterday in
both houses of Congress. Representative
Clement J. Zablocki, the Wisconsin Demo-
crat who heads the House Foreign Affairs
Committee, said that the compromise bill
would reach the floors of both houses on
Tuesday.
Mr. JAVITS. Mr: President, the legis-
lation crafted by the conference com-
mittee is, in fact, much better for having
had to go through this "buffeting" of
the American political process. It is
more careful and more thorough than
the bill which the administration origi-
nally proposed. By protecting the com-
mercial, cultural, and other relations of
the United States with the 171/2 Million
people on Taiwan, It provides a firmer
political foundation in this country for
the improvement of relations with the
People's Republic. I think that the lead-
ers of the PRC will come to recognize
this fact-that having dealt fairly with
our friends on Taiwan, we are in a better
position to continue the process of nor-
malization with the People's Republic.
The majority of the. Members of Con-
gress, in my judgment, strongly favor
the normalization of relations with the
People's Republic of China and, in this
legislation, sought only to fulfill our
basic moral commitments to the people
on Taiwan, in a way which is compatible
with the goals and conditions for nor-
malization of relations with the People's
Republic.
Now, Mr. President, this matter has
been very much debated, and I will not
reiterate the arguments about it or the
meanings of the words which are used.
However, I do wish to emphasize two
things: First, under section 2(b) (3) we
make it very.clear that when we sought
to normalize relations with the PRC,
that policy "rests upon the expectation
that the future of Taiwan will be deter-
mined by peaceful means."
We mean it. I hope when the Presi-
dent signs this bill, as I hope he will,
that the implications of that paragraph
will be crystal clear.
And I might-say, Mr. President, that
is no different from the fact that the
PRC normalized relations with us upon
the expectation that we would no longer
maintain official diplomatic relations
with the Republic of China on Taiwan.
We have honored our commitment.
Second, Mr. President, when we speak
of the future of Taiwan and the fact
that it shall only be changed by peaceful
means, we also include-and this is, in
my judgment, very, very important-the
way in which they run their society and
their right to determine how they shall
run their society. That, Mr. President, is
a very important element in our con-
sideration because we say in section 2(b)
(6), "to maintain the capacity of the
United States to resist any resort to
force or other forms of coercion" and
these are the pertinent words "that
would jeopardize the security or the so-
cial or economic system of the people on
Taiwan." " That means not only their se-
curity but the social or economic system
S3
that they choose. I wish to make that
crystal clear.
Here, too, I refer the Government of
the People's Republic of China to sec-
tion 2(b) (1) which makes it very clear
that we want the same close, friendly,
and commercial relations with the PRC,
itself. We have wrapped that into this
very same security clause so there can
be no doubt about our good faith in
undertaking a normalization of relations
with the People's Republic of China,
just as there can be no doubt about our
good faith as far as the people on Tai-
wan are concerned.
Mr. President, the other matter to
which I wish to call attention, which
relates to laws of the United States, is
that we have been very careful to pre-
serve property and other comparable
rights without trying?to decide the Issue
of the diplomatic installations which are
here, especially the embassy property in
Washington. Generally\ speaking, we
have been very protective of property
rights, et cetera, respecting the people
on Taiwan and what they have created
in this country, in the.United States.
In that respect, I wish to emphasize,
because it is very important to lawyers,
the preemption clause which is contained
in section 6(c) of this bill, which makes
this measure, if signed by the President
into law, the, governing law, if there is
any conflict with other law of the United
States or of the District of Columbia
where this institute which is provided for
is incorporated, or with the law of any
State or political subdivision which "im-
pedes or otherwise interferes with the
performance of the functions of the in-
stitute pursuant to that act."
That is a very important clause, Mr.
President, certainly, to the courts, to
lawyers, and to people who are engaged
in any litigation respecting property
rights, and I call special attention to it.
Finally, Mr. President, the definition.
We worked on this definition very
ardently and with great concern. I be-
lieve it spells out precisely what we mean
when we use the term Taiwan. It refers
not only to corporations and other en-
tities and associations which are private,
but also to the public authorities on Tai-
wan as recognized by the United States
prior, to January 1, 1979, as well as any
successor governing authority there.
I believe we have sought, as far as
human beings can, to anticipate all of
our problems and we have dealt with
them in the text of this legislation.
Mr. President, I hope that we will also
now arrive at a relationship with the
People's Republic of China which will
move on satisfactorily, satisfactorily to
them and satisfactorily to us, the ground
rules having been laid down so very care-
fully and so very precisely. Though it has
been an arduous task, this represents one
of the great decisions in our postwar his-
tory. I think it has been made well and
wisely. I take great pleasure and deep
gratification in the fact that the Con-
gress will have, when this bill is made
into law, contributed an affirmative and
a very constructive element to this rela-
tionship. Congress has demonstrated its
ability carefully to architect a piece of
legislation which will do what needs
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S 3644 CONGRESSIONAL RECORD -SENATE March
to be done in terms of the national in-
terest and the moral interest of the
United States as far as the people on
Taiwan were concerned. It does so with-
out in any way transgressing any obliga-
tion undertaken by the United States, in
the Joint communique or otherwise, to-
ward the People's Republic of China, or
in any way complicating or nullifying the
relationship which we have now agreed
it is the high policy of the United States
to establish with the People's Republic of
China.
Mr. President, I commend this confer-
ence report to my colleagues. I commend
to them also a careful examination of its
craftsmanship in legal terms. I hope very
much that the Senate will see fit today,
as the other body has already done, to
approve this conference report.
Mr. GLENN. Mr. President, I associate
myself with the remarks of the distin-
guished ranking minority member of the
Committee on Foreign Relations and the
remarks made earlier by our committee
chairman (Mr. CHURCH). I only add one
thought or two to the statements they
have already made.
I read in the newspaper a few days ago,
with some concern, Mr. President, re,
narks by Foreign Minister Huang Hua
of the People's Republic of China, as re-
ported in the Washington Post, to the
effect that the phrase "unacceptable to
the Chinese Government" was Mr. Hua's
description of the deliberations of our
conference committee with the House in
regard to the Taiwan Relations Act. The
analysis, as reported in that story, indi-
cated that the PRC, or, at least, Foreign
,Minister Huang Hua, felt that in our
conference committee deliberations, we
had apparently gone considerably beyond
the security guarantees for Taiwan pre-
viously expressed by the administration
and previously agreed to in the normal-
ization discussions that were held be-
tween the administration and the
People's Republic of China.
I do not feel that we did go substan-
tially beyond that, and I hope that in
our new relationship, the People's Re-
public of China representatives do not
over-analyze what happens in the U.S.
Senate in the treaty ratification process
or on a normalization procedure which
we have gone through with the House.
Those basic interests in the security of
Taiwan, and the basic relationship of
continuing arms sales during this year
that were already in the pipeline, and
the capability of making new security
commitments-new arms commitments-
to Taiwan at, the end of this year, begin-
ning on January 1, 1980, were in the
original administration agreement of
normalization. We basically expressed
our prerogatives here, in Congress, as
equal partners in this normalization
process to establish our "grave concerns,"
with regard to the long-term security of
Taiwan. That term, particularly, was
picked up by Foreign Minister Huang
Hua as being especially obnoxious.
He went on to say:
If the bills are passed as they are worded
now and are signed into law, great harm will
be done to the new relationship that has
just been established between China and the
United States.
I submit to the Foreign Minister of charade. In this case, we have alienated
the People's Republic of China that we a friend of many years' standing, for
have gone no farther than the adminis- precious little in return. And we have, I
tration in expressing our concerns; the am certain, diminished our character
grave concern at this end of Pennsyl- and our resolution in the eyes of China's
vania Avenue that there be peaceful res- 900 million-people, not to mention their
olution of the disagreements with regard self-satisfied leaders.
to the final status of Taiwan.
In all of our documentation here, and
in all of the work of the conference com-
mittee, we have recognized, as both sides
have said is the case through many years,
that it is one nation. We repeated over
and over again that we have grave con-
cern, and we would continue our sales
to Taiwan at the end of this year at
whatever balance of military forces was
deemed necessary at that time.
So, I repeat, Mr. President, that I hope
the People's Republic of China and their
officials, in their new relationship here
and their new diplomatic responsibili-
ties for making normalization work prop-
erly, are not overanalyzing things and
forgetting that we at this end of Penn-
sylvania Avenue, the Congress, have an
equal responsibility, under our consti-
tutional form of government, to express
the will of the people. In our checks and
balance system the Congress, as well as
the President, is responsible for negoti-
ating this new normalization that we
have with the People's Republic of China.
It does not go that much further and
does not change drastically what the
President agreed to in the normalization
process.
I think, with those few words to be
added to the words already expressed
by Senator JAVITS and Senator CHURCH,'
I shall see if anybody else wishes to speak
on the subject.
Mr. HOLLINGS. Mr. President, I speak
today in opposition to the conference
report on the Taiwan enabling legisla-
tion. My conviction is that a great power
retains both its greatness and its power
by dealing forthrightly and resolutely
with the other nations of the world. I do
not think we are dealing forthrightly and
resolutely by this bill. The whole ap-
proach is typified by the "Institute"
which is being established to carry out
our new relationship with Taiwan. This
Institute is, we are told, to be private-
unofficial-totally nongovernmental. Yet
in the same breath, the administration
comes toxequest the public moneys to fi-
nance the Institute, making the, idea of
unofficially a complete sham. I cannot in
good conscience be a party to this kind of
legislative legerdemain.
We are back to the diplomacy of de-
ception and charade. I thought we had
passed that era back in the middle of the
decade, but here it is again in full blos-
som-the secret deals-the weasel
words-the decision taken without con-
gressional consultation, in contraven-
tion of the law-the hard sell of saying:
Provide the money now, Senator, or blood
will flow in the streets of Taipei and the
responsibility for that will be yours to
shoulder.
So we sail to a new breeze.' We enter a
whole new relationship-in East Asia and
one that is, in the case of Taiwan,
unprecedented. To carry out the un-
precedented relationship we have an un-
tested instrumentality, one without-
legitimate diplomatic parentage-it is
instead the child of appeasement. New
opportunities for mischief by the Peo-
ple's Republic are rife. In the debate
some 2 weeks ago, I described at length
the kind of pressures that the People's
Republic could well be bringing against
Taiwan in the months ahead. I spoke not
of the force of military invasion, but of
the equally insidious coercion of eco-
nomic strangulation. The weapons in
this war will not be troops and bayonets,
but shipping licenses and trade restric-
tions designed to cut off Taiwan-our
ninth largest trading partner-from the
world's commercial nations.
Mr. President, there is a great deal rid-
ing on our new East Asian initiatives.
There is uncertainty, there is lack of ade-
quate safeguards, there is only the reality
of change and of danger. And what, then,
do we propose to oversee this new rela-
tionship? Why a nice little private, non-
governmental institute, wrapped in the
foil of charade, and probably at this mo-
ment bringing tears of laughter to the
leaders of mainland China.
Of course, it would have been much
better to insist upon some kind of con-
tinuing official relationship with our
friends on Taiwan. I think we might very
well have been able to extract that from
the negotiations with the People's Re-
public. But that was not done, that is
history; so, with the hard sell on, I looked
to see how we might somehow enhance
the relationship and lend some aura of
officiality, or at least official oversight,
to the new East Asian policies. I hit upon
the idea of a Joint Congressional Com-
mission for Security and Cooperation
in East Asia. It was to be a small com-
mission, a minor government body, with
a similarly minor budget. Small and
lean, but able at least to report on how
our policies were actually developing,
how the untested instrumentality was
proceeding, how we might improve our
position in that part of the world. It was
patterned on the model of the Helsinki
Commission, which has done so much to
point up the continuing problems iyA,
Eastern Europe and the Soviet Union.
Certainly it was no threat to the pre-
rogatives of any congressiona' commit-
tee-it was simply a tiny supplement to
our overburdened committees-a way of
bringing constant monitoring into a con-
stantly evolving environment-simply;
cheaply, expeditiously. It would repre-
sent, at the same time, notice to the rest
The distrust shown toward the people of the world that we retained an official
by trying to make abandonment of an interest and an official oversight; that
old friend look like a policy of principle. we were watching every development
There is always a high price which at- and studying every nuance; and that the
tends the diplomacy of deception and United States was sufficiently concerned
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March 29, 1979 CONGRESSIONAL RJEC?RD -SENATE S 3645
about that part of the world as to devote their representative institutions. And it squeeze could be brought by the People's
at least some resources to closely moni- concerns the direction of our foreign Republic upon these little island people
toring it. policy at a time when that policy is under that could well promote discord and
The chairman of the Senate Foreign scrutiny, even attack, the world around. upset and cause a real security problem
Relations Committee agreed to my We need to move forward on all these for us in the Far East.
amendment before the debate even be- fronts. We need to restore our sagging It has been pointed out by some
gan; the committee approved it on the credibility. And we need to develop a scholars, knowing the background of
floor; and the Senate passed it March 8. Policy upon which the American people Chiang Ching-kuo, the President of the
When it got to the House, ?I understand, can look with pride rather than shame Taiwanese Government, that he had
it encountered some misgivings as to and embarrassment. The need for this trained in Russia. If he was pressed,
germaneness-although I do not know kind of policy is clear. Equally clear is and had no support from the United
how anything could be more germane- the sad fact that the legislation before States and, perhaps, lost the support
and jealousy as to the prerogatives of us today, and the administration policy of the people of Taiwan itself, then we
their Foreign Affairs Committee-al- upon which it is founded, fails to meet could be faced with a Far East Cuban
though those were in no way threatened. these tests. situation.
In any event, the House-passed measure Mr. President, concluding these re- I am not predicting any such thing,
was in no way similar to the original marks, I wish I could speak hopefully but surely it is a matter of possible
amendment. It was watered down to the about the Institute that we have now concern.
point of merely calling for that Cham- set up. I wish that the administration The conference report is a great im-
ber's Committee on Foreign Affairs and would be as categorical and clear as provement over the bill that was pre-
this Chamber's Committee on Foreign the distinguished Senator from New sented by the administration, but I will
Relations to monitor the provisions of York was. He reminds us that the com- vote against the conference report. And
the act and the implementation of our mittees on foreign relations in both I go directly to the comments made by
policies and report back as appropriate. Houses have made tremendous improve- our Committee on Foreign Relations
Then the legislation went to confer- ments on the administration bill and about the constitutional -right of the
ence. I was not in attendance, so I do Policy relative to Taiwan. It was obvious President to make foreign policy.
not know exactly what occurred there. I the administration had no grave con- (Mt. BOREN assumed the chair.)
understand that the chairman of the cern, that it was a case of the bum's Mr. HOLLINGS. We know that con-
Senate committee fought well for the rush. They said no word could be stitutional right. But then he said that
Senate- amendment, but that there was changed, and they drew the specter that there was nothing that the Congress
suddenly, from others on the Senate side, if they did not have immediate funds could do about it, or words to that
expression of concern as to the costs in- for Taiwan, there would be bloodshed in effect. Many of us served in here during
volved-although these had never even the streets of Taipei. the past 13 years, with the Congress
been mentioned in the Senate debate. These kinds of things really are dis- going in one direction, the President in
Suddenly, some were troubled by the turbing. We talk about grave concern. another direction, and the people in a
fiscal implications of the Commission, What is of grave concern to this Senator third direction. i thought we had learn-
which was specifically designed to when the administration acts in such ed the lesson of Vietnam.
parallel the modest budget of the Hel- an immature fashion. I want to make it graphic. I recall we
sinks Commission at $550,000?per annum, I thought, of course, that the over- had at one time the Secretary of De-
hardly excessiv. The measure which sight commission Would-be a very con- fense before the Foreign Relations Com-
emerged from conference was almost tributing institution to make certain mittee and he was asked about the war
identical to the House-passed version. that the policy set by the U.S. Govern- in Laos. He said, "What war?"
It added some language including other meet, through not only its President but We said "Mr. Secretary, we are in
appropriate committees who might its Congress, was properly followed closed session; go ahead and attest to
monitor and report on the act, but, in through. The Senate agreed and passed the war the United States is engaging in,
reality, congressional oversight is re- my amendment, supporting, supplying, and where we
duced to a sham. If this is a oversight compromise re- Just a few days ago, I returned from actually have personnel."
duced
Senate and House differences, believe the hearings with respect to the Helsinki His answer was that the Department
of I woul hate a see a case where Commission. I asked distinguished mem- of Defense had no personnel or Ameri-me, the Senate bers of the Foreign Relations Committee cans in Laos. Then the committee in-
gives in. there why the Senate and the House Vited Director Helms of the CIA, ad-
Now, Mr. President, the two Houses Foreign Relations Committees could not vising him, too, that we were in closed
will approve the conference measure, and take care of the job that the Commis- session. We had to make a determina-
the next question is providing for the sion was doing. They said the commit- tion about the amount, how to authorize,
appropriation. As chairman of the tees could not give the attention, could and at ? that time it was running $178
Appropriations State-Justice-Commerce not give the visibility, could not be effec- million.
Subcommittee, i joined our other mem- tive handling it. It was a matter of work How do we tell about that real need
bers in declining the State Department's volume if nothing else. The Commission of the United States in Vietnam? We are
importunings to shortcut the legisla- was needed.
tive process by providing the money be- asked for money here. We want war have
fore we had a bill authorized. With this Of course, this applies with respect it justified. Tell' us about the win
bill being approved now, the President much Taiwan as I wanted to watch our Director Helms had the "
has a right to expect that the money to what war"
own American Institute. I am very fear- approach, too, but finally he pulled a
carry it forward will be provided. For ful as expressed by the Senator from paper from his pocket and said:
my part, I have no intention of impeding N
ew York, for our continued economic Gentlemen, I am sorry, I am under ex-
.that Process, and our subcommittee will ties. Taiwan is our ninth largest trading ecutive privilege and I am not allowed under
expeditiously
appropriation move on the matter of the partner. I am afraid that the People's the executive privilege of the President of
Republic will find occasion to exert the the United States to discuss this war with
I do think, Mr. President, that this economic squeeze. The Taiwanese have you.
could have been a happier story with a enjoyed economic prosperity and success. So we had a secret war in a secret
wiser ending had we gone the route of The could well begin to act like other land, and persons living in America were
straightforwardness which I have dis- folks, when they are not too busy mak- dying in Laos, and their parents and
cussed here today. This is an important ing a living, and develop a concern with widows would be concerned, and all the
measure for more reasons than one. It their rights. It could be, and I hope so, Congressman and Senator could say was,
concerns our relationships with a large that they will get a freely elected gov- "We don't know."
area of the globe. It concerns the work- ernment over there, or at least they That is how ridiculous this so-called'
ing of our own Government, the coordi- could move against the present govern- constitutional right of a President to
nation between the separate branches of ment. If and when that occurs, we do make foreign policy had become.
that Government, and the confidence have a security problem with respect to so I' thought we had agreed to a man
which exists between the people and a free election. I think an economic that, hereafter, whenever we go again in
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S 3646
CONGRESSIONAL RECORD -SENATE March 29, 1979
our policies, that the Congress, the the British, take note of the PRC claim, the State Department that everything
people, and the President would all go but not officially "recognize" It. with regard to this new relationship,
together. I would only have taken note of, but with regard to normalization, with re-
I thought that with President Carter never dignified, the idea that a govern- gard to our commitments to Taiwan, is
we had that higher moral call or obliga- ment that has never seen an entity and out in- the open and that there are no
tion that the Senator from New York a territory could claim that entity. And secret commitments. We have that in
referred to. Certainly President Carter I surely would never have done it cate- writing, and I trust that that is exactly
gave impetus to human rights and gorically and on national television. the case. If not, there will be a Senate
morality and we began to feel at last So, the administration flies in the face Chamber full of many disgruntled and
that the true strength of America lay in of history, and flies in' the face of the unhappy Senators, including myself. We
people of the United States who desire do have that certainty.
oral force of her position
th
.
e m
Now we find chicanery and sham, in overwhelmingly that we maintain our Mr. HOLLINGS. Does* the Senator
total disregard of reality. For, in essence,
I think I will put the word "official"
against every dollar we appropriate
there.
Incidentally, I said earlier in my re-
marks that I have talked with the Presi-
dent, and the Congress, apparently, will
pass this, and he will sign it, so I will
not stand in the way if the President
wants to get something done, even
though I disagree with it.
But what I disagree with most of all is
the proposition that this was in good
order, that it did not reflect on the way
the United States of Americas conducts
its business.
For one thing, the President disre-
gards history. He shows a propensity to do
that. He started off as President and tried
to remake Midwest water policy, effectu-
ated and evolved over a 75-year period
by 11 States, Governors, Republicans, and
Democrats, for the use of the Colorado
River and other waters, and all the other
reclamation. The President immediately
characterized them as pork barrel,and
tried to change the water and reclama-
tion policy of America. Of course, he ran
into a hornet's nest, not because it was
pork barrel, but because it was good pol-
icy. Mistakes were made. We cleaned
them up in that particular program.
Even in foreign policy, we have water
projects and hydroelectric projects, irri-
gation dams, and what-have-you, under
the World Bank and the International
Development Agency, to the tune of over
$1.7 billion this year. International, for-
eign pork barrel, even into Communist
Romania. But do not let me go off on
that subject. Let us stick to the sense of
history.
I do not think Teng Hsiao-ping has
ever seen Taiwan. Now, many of us here,
probably everyone in this Chamber, has
been to Taiwan. I do not think anybody
in the Government of the People's Re-
public has.
The first thing I want to do is get tour-
so we can
edures reimplemented
i
t
,
proc
s
take our Government on visitations, so Senator from South Carolina. I certainly
we can all see the little country of Tai- thank him for that contribution.
for the past 85 years, has Mr. HOLLINGS. I thank the Senator.
which
wan
,
,
not been under the jurisdiction or con- Mr. GLENN. Mr. President, there are
trol of the mainland Chinese. I could no points the Senator from South Car-
go into the background of the island the olina brought up that I wish to debate.
Portuguese named Formosa, or "beauti- I will make a couple of comments, how-
ful island," and the occupation of Portu- ever, as to the other commitments he
guese and Dutch, the history of dynas- mentioned that we might well have.
ties, the Japanese, and all the rest. They were of great concern to me also
But the point of the matter is-that this when we had the State Department of-
so-called government, mainland China, ficials before the committee. I also
the People's Republic, has never had wanted to find out if there were any
jurisdiction. Now I respect the People's other commitments. Was there another
Republic. I do not resist the normaliza- shoe yet to drop? Was there something
tion, I would -have preferred, if asked, else we did not know?
to use the formula of the Canadians and We have been assured in writing by
Mr. GLENN. They will be glad to hear,
that advance word.
Mr. JAVITS. Mr. President, I suggest"
the absence of a quorum.
The PRESIDING OFFICER. The
clerk will call the roll.
The assistant legislative clerk pro=
proceeded to call the roll.
Mr. GLENN. Mr. President, I ask
unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, it -is so ordered. .
Mr. GLENN. Mr. President, I ask for
the yeas and nays on the bill.
The PRESIDING OFFICER. Is there
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On the main point again, on the way propriate the moneys authorized here
we conduct business, let us look at the and then officially have no government-
impact on Japan. We talk of security to-government contact? Does the Sena-
pacts and our defense umbrella in the tor really believe that?
Far East, but the other party in Japan Mr. GLENN. We have said all the way
has caterwauled for years that Japan through, I say to the Senator, that we
could not rely on us. I daresay, Mr. all have recognized this as somewhat of
President, that it will pick up substantial a diplomatic charade, which the Japa-
political support within Japan, because nese went through, which everybody has
they can now say, "Security pacts can be gone through. It is a way of taking care
undone by the United States with a snap of this relationship between geographi-
of the finger and an appearance on TV. cal and people entities, short of formal
So we better begin to defend ourselves." diplomatic recognition, but it is difficult
Incidentally, Mr. President, what we at best.
will have then is more nuclear prolifera- I believe that the American Institute
tion, in spite of all the President's other on Taiwan will probably be as American
efforts to stop nuclear proliferation. as our embassy was previously, but it will
And what are we telling Korea? They not have the sanction of being an of-
will say, "The United States tells us as ficial diplomatic entity as we had previ-
it withdraws its troops that it will take ously on Taiwan.
care of our security, but we could not be Mr. HOLLINGS. It was said that blood
any more important than the Taiwanese will flow in the streets.
they treated as they did." That puts them Mr. GLENN. I think- it is important
in a very tenuous position. that we get this Institute established as
In the Middle East, we are indebted rapidly as possible. In all sincerity, I am
to the President for saving people and his glad to hear the distinguished Senator
tremendous accomplishment. between state that he is going to move ahead to
Egypt and Israel. But we are giving them reprogram the money from the embassy
the idea, too, that when we say we have to this new American Institute; because
a security pact, we do not feel too secure the news from Taiwan just this morning
in a security pact because, again, it can indicates that as a result of some of the
be cast aside with an appearance on TV, uncertainty, according to people there,'
without. consultation, even when Con- our dollar has been- falling against the
gress has asked for consultation. So this new Taiwan dollar indicating there is
matter really reflects on the morality of less confidence in our dollar at this
the position of the United States, more so point.
than any kind of human rights policy. Mr. HOLLINGS. I would have less con-
That is what bothers me. That is why I fidence if I were there. I agree with that.
vote "No." Even though we might pass this and pass
Mr. JAVITS. Mr. President, I thank the appropriation, I can see the lessen-
the Senator from South Carolina for his ing in confidence as the years pass.
ublic does
le's Re
if th
P
f
t
p
e
eop
ac
,
contribution. In
I think that what has made our de- come to predominate, they will never
bate in this matter so useful and what see any American free enterprise system
has -resulted in such a useful position there. So whatever kind of confidence
to the country has come exactly from so they have in the economy, bless their
deliberately thoughtful and frank an souls, tell them they had better get a
expression of views, positive in their free election quickly, and I would be
implications, as we have had from the glad to recognize them in the U.N. We
will have the U.N. hearing on Monday.
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Summary of Nuclear Export Procedures
t
"
March 29,. 19 79 CONGRESSIONAL RECORD -SENATE S3647
a sufficient second? There is a sufficient developed by us on the Senate floor on tions, but also to technology transfers,
second. March 8, 1979, during consideration of subsequent arrangements and any other
The yeas and nays were ordered. S. 245, which appears in the CONGRES- authorized form of cooperation with the
Mr. JAVITS. Mr. President, I suggest SIGNAL RECORD of that date, beginning on people on Taiwan in the peaceful uses of
the absence of a quorum. page S2337? atomic energy pursuant. to both the
The PRESIDING OFFICER. The Mr. CHURCH. I agree completely with Atomic Energy Act of 1954, as amended
clerk will call the roll. my colleague from Idaho that the legis- and the Nuclear Nonproliferation Act
The assistant legislative clerk pro- lative history which we crafted during of 1978, and further that the relevant
ceeded to call the roll, consideration of S. 245 attaches fully to provisions of the conference bill will sat-
Mr. GLENN. Mr. President, I ask section 4(b) (5) in this conference re- isfy the procedural requirements in those
unanimous consent that the order for port, and further, that the discussion on acts for those authorized forms of co-
the quorum call be rescinded. page 15 makes the conferees' intent ab- operation?
? The PRESIDING OFFICER. Without solutely clear to the effect that this spe- Mr. CHURCH. The Senator is com-
objection, it is so ordered. cific Senate provision shall be construed pletely correct.
Mr. McCLURE. Mr. President, I con- as fully applicable to the matters to Mr. HARRY F. BYRD, JR. Mr. Presi-
gratulate my distinguished colleague which it is directed, the continued and dent, will the Senator yield?
from Idaho, Senator CHURCH, the chair- uninterrupted cooperation in atomic en- Mr. GLENN. I yield.
man of the Foreign Relations Commit- ergy with the people of Taiwan under the Mr. HARRY F. BYRD, JR. Mr. Presi-
tee and the floor manager of this con- Atomic Energy Act of 1954, as amended, dent, I intend to vote in favor of this
ference report, on his success in con= and the Nuclear Nonproliferation Act of conference report, and I commend the
Terence in persuading the House of 1978 and as further effectuated by the committee and its chairman for the
Representative conferees to accept the procedural provisions of this act, able work done on this important matter.
McClure-Stone amendments on the full Mr. McCLURE. Would the floor man- The conference' action is stronger be-
and uninterrupted continuation of all ager also agree with me that the letter of cause it not only provides a needed basis
forms of cooperation in atomic energy March 8, 1979, from the Department 'of for continued relations with Taiwan but
with the people on Taiwan under the State to the Honorable FRANK CHURCH, also because it continues in force all
Atomic Energy Act of 1954, as amended, chairman, Foreign Relations Committee, treaties between Taiwan and the United
and the Nuclear Nonproliferation Act of and signed by Assistant Secretary Doug- States which were in force prior to Jan-
1978. I am extremely pleased to find the las J. Bennett, which appears at page uary 1, 1979, "unless and until termi-
McClure-Stone amendment in section 4 S2341 of the March 8, 1979, CONGRES- nated in accordance with law." This
(b) (5) of the rnnfevenep rannr+ -- 0-
ff
ti
d
d
er
p
t
d b
th
,
,
structively protect the best interests of
the new sectioning in the conference tine iviutuai ueiense Treaty between
the United States and those of n,lr Taiwan and the United States by the
bill?
is com
l
t
l
ff
ti
e
er
rom Assistant Secretary Bennett
,
,
l
tt
f
tor from Idaho that the March 8
1979
friends abroad. Again, Mr. President, executive urancii acting alone; nor does
Mr. CHURCH. I agree with the Sena-
p
e
or
the
ifi
l
e
, o
course, with the ap-
ec
a
conferenc
bill
f
be followed under the provisions of the
regard, and as discussed in Assistant
S
t
'
tio
t s
l refere
p
p
es.
with the McClure-Stone amendment, as aecomes whether Congress will act to
Mr. MCCLURE. For example, in that
included in the conference rennrt in epr_ terminate this treaty so that at a date
y
nne
s
e
er. would the
loquy with me on that subsection of the
conference report pending before the
Senate.
I note that section 4(b) (5) of the con-
ference report is discussed on page 15 in
the joint statement of the conference
committee. The first full paragraph on
page 15 identifies the McClure-Stone
amendment, as Passed by the Senate, as
"consideration of nuclear export appli-
cations (section 116) ".
The next paragraph on page 15 dis-
cusses the combination of the general
House provisions and "the more specific
-Senate provisions without weakening or
narrowing the applicability of any of the
provisions adopted." The paragraph con-
tinues:
Applicable
o the People on Taiwan Un-
e
ec
ve an
operative for the bill r
-
por
e
y
e conference committee
2479
with appropriate references to
p
e
e
y e
ec
ve and o
erativ
f
spec
c nuc
ear export procedures to
na
ro
Hi
nc
ecre
ar
Be
tt
l
tt
of the conference bill, as a matter of law Thus, Mr. President, unless and until
clearly establishes that an instrumen- direct, action is taken by the Congress to
tality established by Taiwan which the terminate this Mutual Defense Treaty,
President determines has the necessary then under this legislation on which we
authority under the laws applied by the will soon vote-specifically under its
people on Taiwan to provide assurances section 4(c)-the Mutual Defense
shall be deemed to have full authority Treaty with Taiwan will continue in full
to provide the required assurances for force and effect.
nuclear exports under the Atomic Energy Mr. JAVITS. Mr. President, I sug-
Act of 1954, as amended, the Nuclear gest the absence of a quorum.
Nonproliferation Act of 1978, and the The PRESIDING OFFICER. The clerk
agreement for cooperation with Taiwan, will call the roll.
the continuation in force of which is The assistant legislative clerk pro-
confirmed by this bill? ceeded to call the roll.
Mr. CHURCH. My colleague from Mr. PERCY. Mr. President, I ask
Idaho is completely correct; the assur- unanimous consent that the order for
ances provided by such an instrumen- the quorum call be rescinded.
tality
as a matter of law shall b
h
,
e T
e PRESIDING OFFICER Witht
,.ou The Senate provisions are to be construed deemed to have been received from the objection, it is so ordered.
as fully applicable to the matters to which legal entity with full authority to pro- Mr. PERCY. Mr. President, I appreci-
they are directed.... vide the required assurances under those ate very much the managers of the bill,
Would the floor manager agree with acts and the agreement for cooperation. Senator CHURCH and Senator JAVITS,
me that this discussion, on page 15 of Mr. McCLURE. Finally, Mr: President, withholding a vote on this matter until
the conference report, of the McClure- I ask the floor manager if he would agree I was able to return to the Chamber and
Stone amendment and the conferees' in- that section 4(b) (5) in the conference - to make a few remarks and then address
tentions with regard to its construal bill, just as the original McClure-Stone a few questions to them.
clearly and categorically links to section amendment is intended to apply not only Mr. President, I think that the bill be-
4(b) (5) the lengthy legislative history to nuclear export licenses and applica- fore us represents the will of the majority
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S 3648 CONGRESSIONAL RECORD -SENATE March 29, 1979
in this Chamber because it expresses the when the amendment relating to the owns the diplomatic property, to wit, the
concern of the American people that the Twin Oaks Property was before the Sen- Embassay property. The reason it is neu-
future of Taiwan and the Pescadores be ate, I argued against it. At that time I tral is this: We engaged in an affirmative
resolved on a peaceful basis. At the same suggested that Congress is not competent act with the People's Republic of China,
time it does not conflict with the view to pass judgment on the title of real well recognized by international law in
of the authorities in Peking and the peo- Property, and that the amendment con- all its implications; to wit, we recognized
pie on Taiwan that there is only one stituted an effort by Congress to declare them and sent an Ambassador. That is
China and that Taiwan is a part of who owned Twin Oaks. unaffected by this act; we could not af-
China. I do not think that the Congress of fect it. That is it. Once done by the Pres-
The bill preserves the intent of the the United States could describe the ident, that is a complete act of recog-
or the residence of the distin- nition.
property
ti
ti
hi
,
ons
a
s nego
President, as agreed in
with China, that we will not have offi- guished Senator from Illinois and-take The only thing this bill seeks to do is
cial relations with Taiwan. In keeping a vote in here and say, "We hereby con- determine where we stand with another
with our long-time friendship with the fer title on the Senator from Idaho who is entity from which we withdraw an Am-
people on Taiwan, it makes available, on now legally recognized as the owner of bassador, not that that was necessary;
a strictly unofficial basis, the benefit of what was formerly Senator PERCY's resi- we could have recognized both, but the
domestic U.S. programs and of commer- dence." PRC and the ROC both insisted that
cial and other contacts between the peo- I do not think that can be done because they would not have that, so in that case
ple of the United States and the people of the constitutional provision against we derecognized the Republic of China.
on Taiwan. In this, the bill once.again the taking of property. without due Proc- Now there is no question in international
reflects the feelings of the American peo- ess and just compensation. law whatever about the effect of recog-
ple and is entirely consistent with the During the original debate I said, nition and how that affects Embassy
statement made by President Carter on when Senators were determined to do property and so on. There is some ques-
December 15, 1978, in announcing the something, that it was beyond the au- tion as to what happens to a relation-
establishment of diplomatic relations thority of Congress, in my judgment, to ship between us and the entity which we
with the People's Republic of China. act. For that reason-alone there would did recognize previously, previous to Jan-
President Carter said on that occasion: be grounds, in my opinion, for a quiet uary 1, 1979, to wit, the ROC Govern-
The United States of America recognizes title action. ment on Taiwan. That is all this bill deals
the Government of the People's Republic of As the Senator knows, the Twin Oaks with. It deals only with something which
China as the sole legal Government of China. property was originally- purchased in the is not dealt with in established interna=
Within this context, the people of the United 1940's by the then recognized Govern- tional law. But as to the PRC, it has been
States will maintain cultural, commercial, ment of China. Normally, under interna- deprived of no right whatever. No effort
and other unofficial relations with the peo- tional law, that property would pass to has been made to deprive it of any right
pie of Taiwan. any successor government that was rec- which it has as the recognized govern-
In the official U.S. statement made ognized by the United States as the Gov- ment of China under international law.
public the same day, it was stated as ernment of China. Mr. PERCY. I thank my distinguished
follows: There is a complication in this case, colleague.
The administration will seek adjustments inasmuch as a conveyance or transfer of In conclusion on this matter, I know
to our laws and regulations to permit the title was made just prior to the time that that one of the hopes is that we will
maintenance of commercial, cultural, and the United States officially recognized continue to strengthen our cultural, ed-
other non-governmental relationships in the the Peking government. As a result of ucational exchange, and trade relation-
new circumstances that will exist after nor- the conveyance there may be a justiciable -ships with the people of Taiwan. Also
malization. issue as to whether that conveyance it is in our mutual interest to begin now
I submit that this bill clearly carries should be recognized as valid. Here again on a very large-scale basis, the program
out the administration's purpose. is a question that can only be resolved of dealing directly with 900 million peo-
On the subject of the concern ex- in the courts. ple. There must be opportunities for two-
pressed in this bill for the nonuse of force So I really feel that Congress indulged way trade here, and I presume that it
in resolution of the Taiwan question, we itself in a futile act when it passed this would be our intention to move forward
carry out the statement made in the particular provision. The efficacy of this now to expand our commercial relations
Shanghai communique of February 27, amendment remains to be determined by with the People's Republic of China be-
1972, which notes that the United States the courts, should an action be brought cause those are the lasting kind of ties
"reaffirms its interest in a peaceful settle- to quiet title to the Twin Oaks property. that make more practical the political
ment of the Taiwan question by the Mr. PERCY. I agree completely with ties between our people.
Chinese themselves." the manager of the bill in this regard. I A final question: Is there anything in
On the question of certain property in did not feel that we were the competent the legislation before us which anyone
Washington, the bill in no way resolves authority to get into this matter. Posses- believes to be inconsistent with the
the problem. If the People's Republic of Sion, it is said, is nine tenths of the law. Shanghai agreement reached in the Nix-
China chooses to file suit in our courts, There is no way in which we could act, on administration or with the under-
the decision will be made in the courts, or the executive branch could act, to evict standings and arrangements reached by
as is usual in our constitutional process. anyone on the property. If a tenant is in the Carter administration in its negotia-
Mr. President, I ask the managers of a piece of property, no one can move in tions prior to our taking this action with
the bill if in this matter the question sim- and evict him except by order of a court; the People's Republic of China?
therefore it should be resolved by the Mr. JAVITS. It is my judgment, if the
ply would be, in a sense, a constitutional court. Senator will yield, that this legislation is
question. I do not know of any precedent, And as I interpret the legislation be- consistent with the Policy of the United
because it is.a matter that really requires fore us we are not changing what the de- States throughout. What it does con-
the People's Republic of China to file suit. cision of the court might be. They have tribute is that where that policy left'
There is no role for. Congress in this. The to go back to the precedent for this and questions blank, the legislation fills in
executive branch cannot resolve it. It determine that case, and it is really up those blanks. Where it left the relation-
really must be resolved by the courts. The to the People's Republic of China to take 'ships uncertain, the bill seeks to supply
initiative would have to be taken by the the initiative to instiute suit -to clearly a framework for those relationships with
People's Republic of China. determine what the court judgment is. what we define collectively as "Taiwan."
It is the hope of the Senator from Illi- Mr. JAVITS. Mr., President, will the But other than that, it does not, in my
nois that this matter could be disposed Senator yield? judgment, contravene the basic policy of
of expeditiously by the courts, but our Mr. PERCY. I am happy to yield to my the' United States as it has developed
role is secondary to the role of the courts. colleague from New York. from 1972 on.
Is that the understanding of the man- Mr. JAVITS. Putting this now in law- Mr. CHURCH. Mr.'President, will the
agers of the bill? yers' terms, and I thoroughly agree with Senator yield?
? Mr. CHURCH. Yes. I say to the dis- what has been discussed, I construe-the Mr. PERCY. I am happy to yield.
tinguished Senator from Illinois that act as strictly neutral on the issue of who Mr. CHURCH. I wish to say in that
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March 29, 1979 CONGRESSIONAL RECORD -SENATE
regard that I fully share the opinions
expressed by the able Senator from New
York.
.Mr. GOLDWATER. Mr. President, will
the Senator yield for a comment?
Mr. PERCY. I yield.
Mr. GOLDWATER. I doubt that this
clears things up, but after the so-called
Shanghai letters I engaged Dr. Kissinger
in quite a number of discussions on this
and he assured me that there was
nothing in the original Nixon discussion
relative to the abandonment of Taiwan.
He even went so far as tell me that in
his discussions with Peking he himself
would have to bring the subject up be-
cause Peking would never bring it up and
usually respond by saying, "Well, that is
a problem that we will solve when we get
to it."
So while I have never seen the con-
tents of the Shanghai letters, I am mere-
ly reciting what Dr. Kissinger has told
me which I had learned, by the way,
from President Nixon and Dr. Kissinger
that Taiwan was not to be abandoned by
any plan that was thought up for them.
I merely wanted to say that for the
record and not ask for a change, be-
cause that cannot be done.
Mr. PERCY. Mr. President, I wish to
associate myself with the comments of
my distinguished colleague from Arizona.
There is no abandonment by any means,
implied or expressed, in this legislation.
In fact, my opening comments were to
the effect that I think the bill before us
represents the will of the majority in this
Chamber because it expresses the con-
cern of the American people that the fu-
ture of Taiwan and the Pescadores be
i esolved on a peaceful basis, and we re-
affirm this.
And I do look forward to a construc-
tive unofficial relationship with the peo-
ple of Taiwan.
We also look forward to an expanding
cooperative relationship with the Peo-
ple's Republic of China, the most popu-
lous nation on Earth.
I am personally satisfied that this bill
allows us to maintain unofficial contacts
with Taiwan as we move toward closer
and mutually beneficial official relations
with China.
Mr.'President, because this has been an
extraordinarily complicated matter, and
it is a matter that is so significant to the
interests of this country, it is important
that we have an overwhelming vote in
the House and the Senate. This is not
the kind of an issue we would want re-
solved by one or two votes on either side.
We should have a mandate from the
Congress of the United States that we
stand together with the executive branch
of Government in taking this momentous
step forward.
For that reason, I wish particularly to
'commend my colleagues, the managers
of the bill, Senator CHURCH, the chair-
man of the Committee on Foreign Rela-
tions, and Senator JAVITS, the ranking
minority member, for an extraordinary
job.
Although I have disagreed on a'few
matters, that does not in any way de-
tract from my great admiration for the
skillful way in which they have-in the
highest tradition of statesmanship?
moved the Senate of the United States
forward, and the House of Representa-
tives forward, to a point where we can
overwhelmingly endorse this legislation
today.
Mr. CHURCH. I thank the Senator
very much for his generous comments.
I simply want to stress my personal
indebtedness to the distinguished Sen-
ator from New York for his cooperation,
and also to the other members of the
Committee on Foreign Relations, who
throughout this legislation have worked
to perfect a bill that would command
overwhelming support here in the Senate.
I speak to those Senators of the com-
mittee who are present, Senator HELMS
from North Carolina, Senator PERCY
from Illinois, Senator HAYAKAWA from
California, Senator MUSHIE from Maine,
Senator GLENN from Ohio, and all the
other members of the Senate Committee
on Foreign Relations. My thanks and ap-
preciation are extended to them.
Mr. JAVITS. Mr. President, will the
Senator yield?
Mr. CHURCH. I yield.
Mr. JAVITS. I join with my colleague,
the chairman, and associate myself with
his remarks.
I want to especially thank Senator
PERCY. I am a lawyer, as everybody
knows by now, and I always value being
put to my proof, and his assiduous con-
centration on the terms of this bill, I
think, had a great deal to do with my
own ability to summon what creativity
was required in order to do what he now
applauds us for. Without him I do not
think it would have been done, and I
thank him very much.
? Mr. DOLE. Mr. President, the House
has passed the compromise conference
report on the Taiwan Relations Act by
a vote of 339 to 50. The overwhelming
support for this legislation, which I hope
will be reflected as well in this Chamber,
reveals the general satisfaction with the
amendments the Congress made to this
legislation, which resulted in a complete
rewrite of the original administration
proposal.
We in the Senate were concerned
about our security guarantees to Taiwan
and we strengthened that language in
the bill-now we have made our position
perfectly clear to the People's Republic
of China: Not only do we expect the dif-
ferences between Peking and Taipei to
be settled by peaceful means, but we will
consider actions taken to ruin the econ-
omy of Taiwan as a threat also. This
nomic organizations around the world
or by preventing international trade
through discriminating bilateral agree-
ments.
I am still not convinced the Carter
administration bargained with sufficient
diligence on the issue of official relations
with Taiwan. President Nixon and Ford
could have normalized relations with Pe-
king any time in the last 7 years on these
terms. I do believe that the Senator from
Kansas and his many colleagues have
made the very best of a poor situation, by
amending this legislation to include cer-
S 3649
tain rights and privileges for Taiwan,
and the final result is that our future
relations will be conducted almost as
they once were, official relations in all
but name.
This past weekend Peking heavily
criticized these actions by the Congress.
I welcome this criticism. It means we
have gotten our point across. The PRC
now knows exactly where we stand on
the Taiwan question. Let Peking not for-
get that the United States has a strong
strategic interest in the Asian Pacific
area, and still has close ties of friendship
and harmony with our allies, the people
of Taiwan.
I have here an article written by J.
William Middendorf, former Secretary
of the Navy and a former Ambassador to
the Netherlands. It calls to mind the
serious concerns and reservations many
of us have about the normalization proc-
ess and the manner in which it was
carried out. I would hope the govern-
ment in Peking will read these words
and, keeping them in mind, temper their
future criticism with the realization of
how strongly the Congress. and the
American people have felt about Taiwan.
Mr. President, I submit for the RECORD
the text of Ambassador Middendorf's
article.
The text follows:
THE SELLOUT OF TAIWAN: "MORE THAN A
CRIME-A MISTAKE"
(By J. William Middendorf)
It was nearly the night before Christmas
1978 ... and all through the House, and
the Senate, nothing was stirring-everybody
was home for Christmas.
But a frenetic activity was going on in the
White House, at the other end of Pennsyl-
vania Avenue. They were hard at work pro-
ducing what many believe was an attempt
to divert the attention of the American peo-
ple from the fact that the so-called Carter
Middle East "Breakthrough" had become the
Middle East Breakdown. It became a break-
down because Rafshoonery is simply no sub-
stitute for facing such problems as the
status of the West Bank of Jordan and East
Jerusalem-issues dodged at Camp David.
So it appears- another "breakthrough" was
arranged-even though it has been described
as a breaking of at least three of the Presi-
dent's campaign promises and a big question
mark for America's credibility as the leader
of the free world.
We ought never to forget Candidate Car-
ter's second TV debate with President Ford-
in which in addition to saying "I'll-Never-
Mislead-You", he told the American people:
"I would certainly pursue the normaliza-
tion of relationships with the Peoples Re-
public of China ... But I would never let
that friendship stand in the way of preser-
vation of the independence and freedom of
Ing of President Carter? At a news confer-
ence in Kansas City just ten days later, Can-
didate Carter elaborated on this subject:
"We are bound by a treaty to guarantee
the freedom of Formosa, Taiwan, the Re-
public of China. I would like to improve our
relationship-our diplomatic relationship
with the PRC, mainland China; hopefully
leading to normalization of diplomatic rela-
tions some time in the future. But I
wouldn't go back on the commitment that
we have had-to assure-that Taiwan is pro-
tected from military takeover."
Just 425 days later-with no such assur-
ance whatever from Peking-at night, when
the Congress had left town, the hand that
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held the dagger plunged it into the back of
one of America's most loyal allies, and most
lucrative trade partners. Goody-bye, Taiwan.
This was carefully noted-with expressions
of joy-by the mob manipulators in Iran.
For the betrayal of Taiwan enabled them to
realize that being a friend and ally of the
United States Government has become al-
most as dangerous as being a relative of the
murderous King Herod-of whom the Em-
peror Augustus once observed: "I would
rather be Herod's pig than his son."
In came Bakhtiar, a new Kerensky, fol-
lowed by Khomeini; another Potential Keren-
sky, described by Andrew Young in one of his
traditionally questionable statements, as a
"future Saint". Good-bye, Iran.
President Carter's alleged "China Break-
through" was not merely the knifing of a
friend and the utter disregard of the Dole-
Stone Amendment, which by a vote of 94 to 0
In the Senate requested consultation with
Congress prior to any change in the Defense
Treaty. The abandoning of Taiwan was not
only wrong from the strategic point of view
but, as we shall see later, unnecessary. It was
an action that recalls the cynical classic of
Talleyrand:
"C'est plus qu'un crime; c'est une faute."
Yes, it is more than a crime, it Is a mis-
take. Just how much of mistake it was, has
been well summarized by the former U.S. rep-
resentative in Peking, and former Director of
the CIA, George Bush.
Ambassador Bush notes that this Carter
sellout "not only diminished American cred-
ibility in the world, but has also darkened
the prospects of peace."
Bush also recalls that with the leaders of
mainland China, the so-called "liberation" of
Taiwan was clearly secondary to the forty-
five Soviet divisions poised'on China's north-
ern border.
And speaking of the word "liberation", is
the Carter Administration prepared to claim
that human rights are better observed on
the mainland than on Taiwan
They are not. The swimmers and the boat-
ers always seem to be traveling away from
Asia's communist paradises-never towards.
In much the same way, it was not the capi-
talists of West Berlin who felt obliged. to
erect the Berlin Wall.
Ambassador Bush dissects the alleged Car-
ter China triumph and finds it not only want-
ing, but ludicrous-a mistake, as Talleyrand
put it, even greater than the moral crime of
broken promises. For as Bush notes:
"The terms that the Carter Administration
has accepted and even trumpeted, are the
same terms that have been available for the
past seven years. But they were always re-
fused before because we knew, just as the
Chinese knew, they were a figleaf for an
object American retreat . China, whose
primary interest lies in a strong, steadfast
American presence in the world, has now
seen just how easily we can be pushed
around. The Chinese realize that we have
given all and gained nothing ... The United
States has put an entire people adrift in a
cruel, hostile sea-and for scarcely any pur-
pose."
Just how much of a mistake it was, shows
In a recent interview with President Carter
that reveals a new dimension in what might
be a monumental example of political ama-
teurism. It is now apparent that neither
Secretary of State Vance, nor National Secur-
ity Advisor Brezsinski did even ask.for the
continuation of diplomatic relations with
Taiwan and for guarantees from the PRC re-
garding Taiwan's security. It was just over-
looked.
Those who spoke about some secret ar-
rangements as to the necessity of giving up
Taiwan in order to establish relations with
the PRC were proven wrong by these revela-
tions. Taiwan could have been saved but was
lost because of sheer incompetence-no su-
perior state reasons involved.
The whole situation is without sense-
breaking diplomatic relations with Taiwan-
a faithful ally-in order to please a country
which, even in the best possible scenario, will
in the long run unmistakably be a competi-
tive super-power, leaving a small, successful
democratic nation In the lurch for no cause;
raising new question marks (even greater
than after pulling out of Vietnam) regarding
the reliability of the U.S. as an ally. Why
couldn't the U.S. have diplomatic relations
with both Chinas? So many countries have
relations with East and West Germany. North
and South Korea, North and South Yemen.
Why did we have to offer the mainland Chi-
nese a total victory? Leading Senators of
both parties are now saying "we left some-
thing on the table" in our negotiations with
Communist China.
Certain moments in history impose
strange alliances-like the U.S.-Russian
combat cooperative of World War II. But,
I cannot see any reason why today the most
powerful country in the world (if we are
indeed that) should accept all the demands
of an internationally isolated, underdevel-
oped and politically unstable country, even
if it has the largest population in the world.
To cave in so easily is a sign of weakness,
one which the Eastern mentality of the
Chinese Communists will certainly not re-
spect, to say nothing of our remaining
"allies". The Communist Chinese themselves
may well be privately asking of what per-
manent value is this newly created alliance.
Indeed, the true beneficiary of this new -
"marriage of convenience" may be the Rus-
sians, because although we have just estab-
lished a new "Molotov-Ribbentrop Treaty",
we may have laid the groundwork for our
final isolation from our most important al-
lies who can see the handwriting on the
wall.
It thus appears that a total diplomatic
victory, with serious consequences for the
credibility of the United States in the world,
had been offered to the Communist Chinese.
Were they in such a strong bargaining po-
sition? The facts do not seem to indicate
this.
Despite a recent treaty with Japan and
some exchanges of visits with European
countries, China Is still in the process of
overcoming its international isolation of
many. decades. China needs international
recognition, especially in view of present
tension with its more powerful neighbor-
Russia, and China's new war with Vietnam.
The Chinese economy is in a disastrous
situation, 50 years or more behind the West-
ern world; desperately in need of capital,
technology and knowhow. It is now, esti-
mated that it may take 15 years and $350
billion dollars of the West's money to finance
their infrastructure and industry needs to
bring China up to a level where she could
be an effective counter to Russian "hegem-
ony". We may find the Russian Bear wan-
dering long before that, and we may also
find China's low cost exports to us more
than we bargained for in the future.
China's domestic political situation is still
not crystallized and the more moderate fac-
tion led by Teng H'sfao Ping needed the rec-
ognition of the U.S. badly.
There is an ominous parallel between the
recently concluded agreement with China
and the Molotov-Ribbentrop Treaty of 1939;
within days after both agreements, war be-
gan-with new "security" alliances in hand,
these adventurers proceeded with long held
plans-aggression.
It Is now clear that the PRC needed U.S.
negotiation before attacking Vietnam.
In the meantime, the priorities of the
Carter Administration are SALT arms limi-
tations with Russia and diplomatic rela-
tions with China. Can we, trust 'the Com-
munists? Instead of remaining strong and
building on our alliances for peace through
combined strength, we may be putting our
neck in one communist lion's mouth to es-
cape another-or maybe putting our neck in
the mouths of both.
Today, it appears that the central theme
of our foreign policy is a President trans-
fixed with SALT IL Our present policy of .'
comparatively unilateral disarmament and
inaction is an invitation to war. Just as a
deer is rendered motionless by the head-
lights of a car on the road at night, Carter
appears to be held hostage by the Soviet
tactic of dangling goodies just beyond his
reach, while they engage in ever bolder proxy
aggression all around the world. SALT II
may turn out to be another abortive Wash-
ington Naval Conference of 1922 which was
violated before the ink was dry and was a
contributing cause to World War II.
The best guarantee for peace is a strong
defense, discouraging any potential aggres-
sor, or as the Romans put it two thousand
years ago:
Si vis pacem, parat bellum (If you want
peace, prepare for war.) -
The Russians, sensing our weakness after
their unopposed proxy vistories in Angola,
Ethiopia, South Yemen, Afghanistan and
Cambodia, capitalizing on the turmoil in
Iran, and watching us voluntarily give our
own friends away in Taiwan, strategic South
Africa, Korea, etc. must now feel the surge
of destiny to be on their side.
So, while the Russians now challenge us
openly in Iran, Africa, and the Arab world,
the Chinese who still help the Palestinians
and the guerrillas in South Africa and Rho-
desia, have recently asked us to get out of
South Korea.
Finally, the whole mosaic of these events
and U.S. policy is coming into view. Ours are
not the actions of a nation confident of the
future, but one of defeat. It is becoming all
do clear that we are, one by one, throwing
out the children to the wolves, as in the old
Russian sleigh-ride scenario. First Vietnam,
now Taiwan and Iran. There is not much left
to give away. Who may be next?
The betrayal of our commitments toward
Taiwan is not only abhorrent to the tradi-
tion of honesty in the United States, but is
also a very serious strategic mistake.
Credibility is. the glue that holds together
the governing structure of the United States
and the system of alliances that defends the
free world. It was credibility that seemed
absolutely radiant in that enomrous smile
and safety-accented series of assurances by
an ex-Governor of Georgia and active church
official, who kept promising that he would
never mislead us. That is what he said: over,
and over, and over again in his campaign,
which began in 1974, two years before he was
nominated and then elected.
But Taiwan is not an isolated issue. The
leaders of the free world are following with
growing concern a series of actions of this
Administration that affect the leadership role
the United States used to play in the world.
For the titular leader of the party of
Franklin Roosevelt has now adopted policies
more akin to that advocated by Charles
Lindbergh and Senator Burton Wheeler In
1940, and prior to December 7th of 1941.
Commander-in-chief Carter, the Annapolis
graduate; has gutted the very Navy that edu-
cated him by recently cutting the Navy's
five-year ship rebuilding by.more than half.
And this at a time of the continuing emer-
gence of the largest Russian navy in history
and despite the fact that it takes 3 to 10
years to build new Naval ships. Even if we
begin today, we are in for scary times ahead
because.. of the 1981-1985 gap when Soviet
forces will clearly eclipse ours.
The Commander-in-Chief, who quite
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rightfully deplores our excessive dependence
on imported petroleum, has just axed a nu-
clear carrier which needs no such petroleum,
and can operate for thirteen years without
refueling.
Without getting concessions from the
other side, he has shot down the B-1 Bomber
and shelved the Neutron Bomb. He has taken
the lead in giving the Panama Canal to a
Panamanian dictatorship which is the very
antithesis of the human rights ideal to which
Mr. Carter purports to be dedicated, and it is
only now coming out that we will have to
pay this dictatorship many millions of dol-
`nars to run it.
Carter's human rights policy has hardly
been applied to the big, strong and most
massively outrageous violators of human
rights like the Soviet Union and its'satel-
lites. Instead the Carter Administration joins
that immoral rabble at the United Nations
is repeated stompings of such nations as
Chile, South Korea, the Philippines-South
Africa; all the white ignoring the compara-
tively mountainous violations of the Soviets
and the battalion of dictatorships and one-
party governments that afflict many coun-
tries in Black Africa.
President Carter may have gotten his Mid-
dle Test Breakdown off the front pages last
December, but this diversionary Taiwanese
backstabbing has made the Middle East
crisis more acute. For Israel is reappraising
the value of American guarantees for its
security in the light of the proposed Israeli-
Egyptian treaty.
Comments in many other parts of the
world are along the same line. Japan has for
some time questioned the ability-or will-
of the United States to repel a Russian at-
tack against the Japanese Islands. So Japan
is rearming, understandably, in view of the
Jimmy Carter Retreat from Taiwan and from
Korea and from moral and military leader-
ship all over the world.
Saudi Arabia, perceiving the inadequate
support given by the U.S. to 'the Shah of
Iran is considering changing its so-far nega-
tive stance toward the Soviet Union.
Somalia, a major defection from the Soviet
camp, has not received the help it needed
from the West and there are indications
it is quietly preparing to return to its former
masters.
Certainly, Mexico did not seem to be im-
pressed by our fidelity as a friend or by the
role we have played in recent world affairs.
when it snubbed our President on his recent
oil -groveling trip.
In an even more serious development,
Western Europe seems to be on its way to-
wards more independent, if not competitive,
policy-making, disenchanged with U.S. In-
decisiveness in world political, economic and
military affairs. There are a number of new
initiatives. Deeply concerned with the
chronic weakness of the dollar (to a large
extent due to the lack of confidence of
world business in the present Administra-
tion), the EEC announced the creation of
a European monetary system. Due to their
diminishing trust in the strength and deter-
mination of the U.S. military power, West-
ern Europe has adopted for the past years
a more conciliatory -position towards the
Soviet Union. Chancellor Helmut Schmidt of
Gerxhany recently advocated an even closer
relationship with the Soviets. President
d'Estaing of France has now suggested the
f rmation of a new bloc that would include
the EEC, Japan, the OPEC and the African
countries, to counter-balance the U.S.-
Soviet-Chinese influence and what they feel
is a diminishing U.S. role in this triangle.
A badly managed foreign policy weakens
the dollar and the competitive position of
American business overseas and affects our
economic life through the balance of pay-
ments. In the long run, a bad foreign policy
can threaten the security of our country.
We are now obligated to face two rather
burning questions, whose time has come-
in what ought to be a moment of truth:
Is an end of the United States as a world
power in sight? And, who stands behind us
to carry the mantle of freedom? Are we in'
the end battle between forces advocating
"Command" economies (socialists, commu-
nists and totalitarians that would dictate
what the citizens needs should be), and
"Demand" economies, that permit individual
choice?
What is the solution?
In the best tradition of American demo-
cracy, we all have the right and duty to
speak out on these issues and try to in-
fluence them through the established chan-
nels. We must begin today in the precious
moments of freedom we may have left to
rebuild our strength, as a clear signal to
potential aggressors, so that we can indeed
live in peace we must hug closer to us every
potential ally. We would do well to reverse
as soon as possible that attitude so widely
held among our allies that we only embrace
new "old enemies" and will sacrifice at the
drop of the hat any "old friend" as long
as it is expedient for us.
As Cicero said to Atticus:
Errare humanum est, perserverare dia-
bolicum. (To err is human, to persist is
diabolical).*
Mr. CHURCH. Mr. President, the yeas
and nays have been ordered, and I be-
lieve the Senate is ready to proceed to a
vote.
The PRESIDING OFFICER. The ques-
tion is on agreeing to the conference re-
port. The yeas and nays having been
ordered, the clerk will call the roll.
The legislative clerk called the roll.
Mr. CRANSTON. I announce that the
Senator from Indiana (Mr. BAYH), the
Senator from Colorado (Mr. HART), the
Senator from New York (Mr. MoYNI-
HAN), the Senator from Mississippi (Mr.
STENNIS), and the Senator from Illinois
(Mr. STEVENSON) are necessarily absent.
I further announcc that, if present
and voting, the Senator from Indiana
(Mr. BAYH) and the Senator from Illinois
(Mr. STEVENSON) would each vote "yea."
Mr. BAKER. I announce that the Sen-
ator from Maine (Mr. COHEN), the Sen-
ator from Pennsylvania (Mr. HEINZ), the
Senator from New Hampshire (Mr.
HUMPHREY), the Senator from Wyoming
(Mr. SIMPSON), the Senator from Ver-
mont (Mr. STAFFORD), and the Senator
from Alaska (Mr. STEVENS) are neces-
sarily absent.
I further announce that, if present
and voting, the Senator from New Hamp-
shire (Mr. HUMPHREY) would vote "nay."
The PRESIDING OFFICER (Mr. HEF-
LIN). Are there any other Senators in
the Chamber who have not voted?
The result was announced-yeas 85,
nays 4, as follows:
[Rollcall Vote No. 32 Leg.]
YEAS-85
Armstrong
Cannon
Ford
Baker
Chafee
Glenn
Baucus
Chiles
Goldwater
Bellmon
Church
Gravel
Bentsen
Cochran
Hatch
Biden
Cranston
Hatfield
Boren
Culver
Hayakawa
Boschwitz
Danforth
Heflin
Bradley
Dole
Helms
Bumpers
Domenici
Huddleston
Burdick
Durenberger
Inouye
Byrd,
Durkin
Jackson
Harry F., Jr.
?Eagleton
Javits
Byrd, Robert C. Exon
Jepsen
S 3651
Johnston
Muskie
Schmitt
Kassebaum
Nelson
Schweiker
Kennedy
Nunn
Stewart
Leahy
Packwood
Stone
Levin
Pell
Talmadge
Long
Percy
Thurmond
Lugar
Pressler
Tower
Magnuson
Proxmire
Tsongas
Mathias
Pryor
Wallop
Matsunaga
Randolph
Warner
McClure
Ribicoff
Weicker
McGovern
Riegle
Williams
Melcher
Roth
Young
Metzenbaum
Sarbanes
Zorinsky
Morgan
Sasser
NAYS-4
Danforth
Hollings
Laxalt
Garr
NOT VOTING-11
Bayh
Humphrey
Stennis
Cohen
Moynihan
Stevens
Hart
Simpson
Stevenson
Heinz
Stafford
So the conference report was agreed to.
Mr. JAVITS. Mr. President, I move to
reconsider the vote by which the con-
ference report was agreed to.
Mr. CHURCH. Mr. President, I move
to lay that motion on the table.
The motion to lay on the table was
agreed to.
WAIVER OF SECTION 402(a) OF CON-
GRESSIONAL BUDGET ACT-CON-
SIDERATION OF S. 349
Mr. ROBERT C. BYRD. Mr. President,
I ask unanimous consent that the Senate
proceed to the consideration of Calendar
Order No. 52, Senate Resolution 105, the
congressional budget waiver.
The PRESIDING OFFICER. The reso-
lution will be. stated.
The second assistant legislative clerk
read as follows:
Resolved, That pursuant to section 402(c)
of the Congressional Budget Act of 1974, the
provisions of section 402 (a) of such Act are
waived with respect to the consideration of
?S. 349. Such waiver is necessary because
S. 349 authorizes the enactment of new
budget authority which would first become
available in fiscal year 1979, and such bill
was not reported on or before May 15, 1978,
as required by section 402(a) of the Con-
gressional Budget Act of 1974 for such au-
thorizations.
Compliance with section 402(a) of the
Congressional Budget Act of 1974 was not
possible in this instance because the Coun-
cil on Wage and Price Stability was desig-
nated to monitor the administration's vol-
untary wage and price standards. This ex-
panded role was not foreseen at the time the
previous authorization was approved.
The effect of defeating consideration of
this authorization will be to impede seriously
the monitoring of the voluntary wage and
price standards which are key elements of
the administration's anti-inflation program.
The PRESIDING OFFICER. Is there
objection to the request of the Senator
from West Virginia.
Mr. BAKER. Mr. President, reserving
the right to object, might I ask the dis-
tinguished majority leader if it is his
intention to have us vote on the budget
waiver resolution this afternoon?
Mr. ROBERT C. BYRD. Yes. We are
going to have 1 hour on the resolution
under the law so there would be a vote.
Whether it is a voice vote or not is
entirely up 'to the Senate.
Mr. BAKER. Mr. President, I have no
request on this side for a record vote.
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CONGRESSIONAL RECORD - S ATE March 29, 19 79
I was trying to ascertain the likelihood the authorization would delay the reg- have reported this bill before last May
that we would have a record vote on it. ular appropriations process or signif- 15, as it could not have ? anticipated the
Might I also inquire of the majority icantly affect the priorities established President's move in October to expand
leader if it is his intention then to pro- in the congressional budget, whether an the role of the Council. The Banking
ceed directly to the principal legislation authorization of the kind was contem- Committee did report, on a timely basis,
after the budget waiver is disposed of, plated in the second budget resolution, an authorization for 1979 at a leJei
or to consider that at another time? and the possible effects of failing to con- consistent with the prior role of the
Mr. ROBERT C. BYRD. It is my inten- side the authorization. Council. With the expansion in October,
tion to proceed to the consideration of Mr. President, according to the Bank- it was clearly evident that increased ex-
the bill S. 349, a bill to increase the au- ing Committee, failure to consider S. 349 penditures would be necessary to allow.
thorization for the Council on Wage and this year will hinder the ability of the the Council to undertake the significantly
Price Stability, and to extend the dura- Council on Wage and Price Stability to greater effort with which it was charged.
tion of such Council. administer the President's anti-inflation The Banking Committee has acted rea'
I do not think the Senate will com- program. sponsibiy in reporting the legislation as
plete action on that today. There may be As the Senators know, COWPS was expeditiously as possible, and reporting
some opening statements or some Sen- established in 1974 to monitor inflation- a waiver resolution.
ators may want to offer amendments. ary wage and price developments in the The Budget Committee is now recom-
My intention would be to go over until private sector and the Federal Govern- mending that the Senate adopt the
Monday, in keeping with my previous ment's contribution to inflation. Last waiver resolution so that this important
promise through April, and on Monday, October, President Carter announced a legislation may be considered. I urge
hopefully, we can get a time agreement voluntary anti-inflation program com- Senators to support the waiver.
to complete action on the bill that day, bining explicit wage and price stand- Mr. President, that concludes my state-
or even Tuesday. ards with prudent fiscal and monetary ment on the resolution.
In answer to the first question of the restraint and measures to insure that Mr. GARN. Mr. President, I rise in op-
distinguished minority leader, we will Government actions are accomplished position to the budget waiver which
vote on the present budget resolution. efficiently and that economic regulations would. allow S. 349 to be considered. I rise
A motion to proceed is not debatable. do not impede fair competition. COWPS as the ranking minority member of the
We will vote on it after 1 hour. So far was designated to monitor the wage and Banking Committee, which the dis-
as I am concerned, it can be a voice vote. price standards, in addition to its exist- tinguished Senator from Maine has con-
Mr. BAKER. I thank the majority ing responsibilities to monitor generally tinually referred to. I think the Senate
leader. I find no difficulty on our side wage and price developments, and to re- should be aware that, unanimously, all
with that arrangement. view and recommend actions to reduce six minority members of the Banking
The PRESIDING OFFICER. Is there the potentially inflationary effects of the Committee opposed S. 349.
objection to the present consideration of programs and policies of Federal agen- One of the first reasons we oppose it
the resolution? cies and departments., at this time and rushing to take it up to-
There being no objection, the Senate To satisfy its; expanded responsibili- day despite the objections, is that we
proceeded to consider the resolution. ties, it is necessary to expand the agen- have simply been ignored in the schedul-
Mr. MUSKIE. Mr. President, the Budg- cy's staff. Because of the highly technical ing of this bill,. all six. members of the
et Committee has reported Senate Reso- nature of the work, borrowing people minority of the Committee on Banking.
lution 105 to the Senate and recommends from other agencies means constant and Because the authority of the Council on
that the resolution be adopted. costly training that interrupts progress Wage. and Price Stability does not expire
Senate Resolution 105 provides for the and efficiency. It is therefore reasonable until September 30, there is simply no
waiver of section 402 (a) of the Congres- that the Council have a permanent, rush to consider this today. Whether
sional Budget Act of 1974 with respect to highly skilled staff. Senators are for or against COWPS is
the consideration of S. 349, a bill to in- In sum, the Banking Committee could not the point. It does not expire until
crease and extend the authorization for not meet the. May 15, 1978, deadline for September 30. Why it was necessary to
the Council on Wage and Price Stability. this authorization because it could not override the wishes of the minority, to
Section 402(a) requires that all au- have foreseen the October 1978 expan- run a steamroller through here today, I
thorizing legislation be reported in the sion of the Council's responsibilities do not really understand, when there are
Senate by May 15 preceding the begin- which prompted the President's request. months between now and September 30
ning of the fiscal year for which it is for an increased fiscal year 1979 author- when this could be considered.
effective. ization.
Mr. President, the Budget Committee Mr. President, under these circum- The second major reason that did
is
is reluctant to recommend the adoption stances, to permit orderly consideration not want t it it brought is that it is now
of resolutions waiving section 402(a) of of S. 349, the Budget Committee has fa- a matter of litigation in the courts
the Budget Act. This section is intended vorably reported Senate Resolution 105 whether or not the President has the
to assure that, as far as legislative needs and recommends that it be adopted. authority, to do what he is doing in the
can be foreseen, all authorizing legisla- Mr. President, let me say in closing way of sanctions in so-called voluntary
tion is reported in time to be considered that in reporting favorably on Senate controls. Most of the President's program
in the course of the regular appropria- Resolution 105, the Budget Committee is to be implemented by a vastly ex-
Resolution
process. is recommending that the Senate pro- banded Council ue is Wage and Price pea-
This procedure gives the Appropria- ceed to consideration of S. 349, but is not sonnel bility. S. incre349 ase requests
This
ase and nd' a a ee 300-percent budget
tions Committee adequate notice of leg- prejudging the merits of the bill. authorization e 500-percent l per-
increase for fiscal year
islative committees' views of the appro- There is no doubt that inflation is our
priations needed for the coming fiscal 19 COWPS operations.
year so that the committee can meet the No. 1 problem. The American pee- O Of particular concern to the minority
appropriations timetable spelled out in ple demand that inflation be brought is the administration's direct and irk
the Budget Act. Major authorizing legis- under control. The President has in- plied threats to, have COWPS impose
lation reported after May 15 could delay itiated a thoughtful multifaceted ap- Federal sanctions to force adherence to
the enactment of appropriations bills proach to the problem of inflation. That the President's wage and price guide-
past the Budget Act deadline of 7 days program should be given a chance to lines. We happen to feel that what ht is
after. Labor Day for the completion of work. Opponents of that program claim doing is- unconstitutional. It is rather
the appropriations process. that something must be done -about in-. interesting just, to give a few examples
The legislative history of the Budget flation, but they do not want to give the of what some Federal' agencies say about
Act indicates that the May 15 reporting Council on Wage and Price Stability the it.
deadline is not to be waived lightly.. In necessary funding to implement the GAO, which, has. significant expertise
deciding whether to report 402 waiver President's program. It would be ir- in procurement policy explicitly states
resolutions favorably, the Budget Com- responsible for the Senate to deny this that the -President does not now have
mittee considers such factors as: The re- waiver and deny the opportunity for full - the power to impose, mandatory controls
porting committee's effort to, meet the Senate. consideration of this legislation. on Government' procurement. GAO
May 15 deadline, whether enactment of The Banking Committee could not reached this conclusion after an exhaus-
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