S. 2097.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73B00296R000400080003-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 9, 2016
• Document Release Date: August 21, 2000
• Sequence Number: 3
• Publication Date: June 18, 1971
• Content Type: OPEN

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June 18, 1971 CONGRESSIONAL RECORD - SENATE S 9395
Increasing recognition of outboard motor
operation as a significant nationwide
source of pollution and improved technol-
ogy to correct the problem make such
standards both urgent and feasible.
- Studies investigating the effects and
the amount of fuel exhausted by two-
cycle outboard marine engines began as
early as 1961, revealing that outboard
motor emissions damage water quality
by tainting fish flesh and by producing
leasant odor and taste. The latest
i firmation is a 1970-71 study made for
t}e Environmental Protection Agency
'Khhich demonstrates that fuel emission
from outboard motors is becoming a seri-
ous pollution problem in our lakes and
river systems.
The quantities of wastes involved in
outboard motor operation are shocking.
The exhaust to the water has been esti-
mated to range from less than 10 per-
cent to more than 50 percent of the fuel
originally put into a two-cycle outboard
engine. Within the 1 billion gallons of
outboard motor fuel sold annually, it has
boen estimated that 100 to 160 million
gallons of fuel is wasted. By comparison,
the Torrey Canyon disaster resulted in
an oil spill of only 15 to 30 million gal-
lons. Furthermore, the waste of this un-
used outboard fuel costs boat owners be-
tween $50 to $100 million a year in out-
Of-pocket expense.
The source of the problem is relatively
simple and should have been corrected
long ago. Because of the design, the
engine parts of the two-cycle motor are
lubricated by mixing oil with gasoline.
During the intake of this fuel mixture
into the firing chamber, some of the fuel
vapor condenses and accumulates in the
crankcase. The unused fuel is evacuated
from the crankcase by valves which open
up and vent the fuel into the exhaust
housing and then into the water. Accord-
Ing to a study made by, Stillwell & Glad-
ding, Inc. in 1969, the two-cycle engine's
open crankcase or "crankcase scaveng-
ing" design is "highly inefficient."
Significant steps have been taken re-
cently in the improvement of the two-
cycle outboard engine b'y the designing
of a drain free engine which would re-
cycle the unused fuel vented from the
crankcase back into the engine as fresh
fuel, and .a recycling device that can be
attached onto two-cycle engines.
The recycling of fuel technique re-
portedly is already being manufactured
in all motor sizes and will be used in-
dustrywide in the 1972 models. How-
ever, in 1970, there were approximately
7,215,000 outbord motors already in use
in this country, and over 98 percent of
these are two-cycle motors. These older
outboard motors will continue to leave
massive fuel residues in our waters re-
gardless of the fuel recycling innova-
tion of the new two-cycle outboard
motors.'
To cope with existing outboard motor
pollution, it is clear that fuel emission
standards set under this bill must cover
existing as well as future outboard
m ltors, requiring use of the best avail-
able technology to reduce or eliminate
-the pollution in each case.
t'hebill that I am introducing will
accomplish these important objectives
through the following: First, direct the
Administrator of the Environmental Pro-
tection Agency to study the available
technology that could abate fuel emis-
sion from two-cycle engines and establish
standards for outboard motors accord-
ingly; second, make it unlawful for any-
one to operate a two-cycle outboard
motor on the navigable waters of the
United States after June 30, 1972, with-
out adhering to these standards; third,
establish a penalty of not more than $500
for any violation of these standards, and
fourth, allow the Secretary of the de-
partment in with the Coast Guard is
operating to enforce the provisions of
this bill by using law enforcement officers,
Federal agencies, or the States.
Mr. President, I ask unanimous con-
sent that immediately following my re-
marks there be inserted in the RECORD an
article from the Jack Anderson column
in the Washington Post dated May 15,
1971, which reports the disturbing find-
ings of the 1970-71 EPA study on the
amount of fuel deposited into our waters
by outboard motors. The article is en-
titled, "Motorboats: Super Polluters of
Lakes."
Also, I ask that the text of the bill be
printed following the article.
There being no objection, the article
and bill were ordered to be printed in the
RECORD, as follows:
MOTORBOATS: SUPER-POLLUTERS OF LAKES
(By Jack Anderson)
With the warming of the weather, the na-
tion's seven million outboard motors have
started to pump a seasonal stream of gunk
into America's once-sparkling waters.
This is the scientific, if upsetting, conclu-
sion of an unpublished Environmental Pro-
tection Agency study.
The study found that a single outboard
motor coughs, splutters and spits as much or-
ganic carbon pollution into the water in 24
hours as the sewerage from a neighborhood
of 400 persons.
Up to 30 per cent of the fuel used in out-
boards, according to the study, actually is
spewed Into the water. Multiplying this by
the total consumption of outboard motors In
this country gives the staggering dimensions
of the pollution problem-more than 100
million gallons of oil and gas poured into
our streams and lakes and along our coast
lines.
Many bodies of water simply don't con-
tain enough bacteria to consume the gush
of oil and gas. The residue fouls the shore-
lines, kills fish, pollutes drinking water and
greases the skins of swimmers.
The study has been conducted quietly-
if that is the word for an outboard motor
test-by Dr. Williams Shuster, head of the
Bio-Environmental Engineering Division of
famed Rensselaer Polytechnic Institute.
He ran his tests with two engines, one 33
horsepower, the other 5 horsepower. His re-
search team used an 18-foot-long, four-foot-
deep swimming pool and took samples of the
water for measurements.
As a double check, they also put containers
on the fuel vents of the engines to collect
the waste.
The lowest amounts of dumpage came
from the high horse-power motor when
it was tuned and speeding. Then only 4 per
cent of the fuel leaked into the water. But
at low speed, the motor threw off 27 per cent
of its fuel. This increased to 30 per cent
when the motor was untuned.
Footnote: The federal government has now
given the Boating Industry Association a
$100,000 contract to study the effect of out-
board motors on the nation's water. The as-
sociation includes the manufacturers whose
motors are causing the pollution. Thus, the
contract is a little like asking a tubercular
cook whether he might infect his customers.
Eight years ago, incidentally, the outboard
motor makers were offered designs which
would have largely prevented pollution.
S. 2096
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That this
Act may be cited as the "Outboard Motor
Pollution Control Act of 1971".
SEC. 2. The Federal Water Pollution Con-
trol Act is amended by redesignating sections
21 through 27 as sections 22 through 28 re-
spectively, and by inserting after section 20
a new section as follows:
"REGULATION OF OUTBOARD MOTORS
"SEC. 21. (a) The Administrator of the En-
vironmental Protection Agency, after con-
sultation with the Secretary of the depart-
ment in which the Coast Guard is operat-
ing, shall promulgate, not later than June 30,
1972, regulations requiring that two-cycle
outboard motors used on vessels or any other
water craft on the navigable waters of the
United States be equipped or modified in
such a manner as will use the latest avail-
able technology to prevent such motors from
polluting such waters.
"(b) (1) After the effective date of such
regulations it shall be unlawful to operate a
two-cycle outboard motor on the navigable
waters of the United States in violation of
such regulations.
"(2) Any person who violates the provi-
sions of this subsection shall be liable to a
civil penalty of not more than $500 for each
violation. Each violation shall be a separate
offense. The Secretary of the department in
which the Coast Guard is operating may
assess any such penalty.
"(c) The provisions of this section and
regulations established thereunder shall be
enforced by the Secretary of the department
in which the Coast Guard is operating and
he may utilize by agreement, with or with-
out reimbursement, law enforcement officers
or other personnel and facilities of the Ad-
ministrator, other Federal agencies, or the
States in carrying out such provisions.
"(d) Anyone authorized by the Secretary
of the department in which the Coast Guard
is operating to enforce the provisions of this
section, may except as to public vessels or
watercraft, (1) board and inspect any vessel
or other watercraft upon the navigable
waters of the United States, and (2) execute
any warrant or other process issued by an
officer or court of competent jurisdiction."
By Mr. PERCY (for himself, Mr.
MCCLELLAN, Mr. RIBICOFF, Mr.
JAVITS, Mr. SCOTT, Mr. BYRD Of
West Virginia, Mr. ALLEN, Mr.
BEALL, Mr. BROCK, Mr. CHILES,
Mr. GURNEY, Mr. JACKSON, Mr.
.MATHIAS, Mr. MUSKIE, Mr. ROTH,
and Mr. SAxBE) :
S. 2097. A bill to establish a Special
Action Office for Drug Abuse Prevention
to concentrate the resources of the Na-
tion in a Crusade Against Drug Abuse.
Referred to the Committee on Govern-
ment Operations.
SPECIAL ACTION OFFICE FOR DRUG ABUSE
PREVENTION ACT
Mr. PERCY. Mr. President, it is with
mixed emotions that I appear in the
Chamber today. I am, of course, highly
pleased to announce a bold, new White
House initiative to deal with the agoniz-
ing problem of drug abuse in this coun-
try. But to even allude to this initiative
one must face up to the oppressive facts
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S9396 CONGRESSIONAL RECORD -SENATE
that establish the depth and dimensions
of this disease that is infecting our so-
ciety, and especially our youth.
President Nixon, in his message yes-
terday to Congress, echoed that thought..
"We must now candidly recognize," he
said-
That the deliberate procedures embodied
in present efforts to control drug abuse are
not sufficient in themselves. The problem
has assumed the dimensions of a national
emergency.
Noting that "drug addiction destroys
lives, destroys families, and destroys
communities," the President went on to
say:
Despite the magnitude of the problem,
despite our very limited success in meeting
It, and despite the common recognition of
both circumstances, we nevertheless have
thus far failed to develop a concerted effort
to find a better solution to this increasingly
grave threat. At present, there are nine
Federal agencies involved in one fashion or
another with the problem of drug addiction.
There are anti-drug abuse efforts In Federal
programs ranging from vocational rehabilita-
tion to highway safety. In this manner our
efforts have been fragmented through com-
peting priorities, lack of communication,
multiple authority, and limited and disper-
sed resources. The magnitude and the sever-
ity of the present threat will no longer per-
mit this piecemeal and bureaucratically-
dispersed effort at drug control. If we can-
not destroy the drug menace in America,
then it will surely in time destroy us. I am
not prepared to accept this alternative.
Therefore, I am transmitting legislation to
the Congress to consolidate at the highest
level a full-scale attack on the problem of
drug abuse in America.
Calling for a statutory Special Action
Office of Drug Abuse Prevention in the
White House, the President has asked for
$155 million in new funds for combating
drug abuse, bringing to $371 million the
total amount to be spent for this purpose.
Of the new funds, $105 million is to be
used solely for treatment and rehabilita-
tion of addicts. Other requests include:
$14 million to enable the Veterans Ad-
ministration to expand its five drug ad-
diction clinics to 30; $10 million for edu-
cation and training in use of dangerous
drugs; $2 million for research on drug
detection techniques; $7.5 million for in-
tensified investigation of large-scale
traffickers and $18-million for customs,
inspections and pursuit of smugglers; $1
million to help other nations train en-
forcement officers; and $2 million for
research on herbicides to destroy nar-
cotics-producing plants.
The President said he would ask Con-
gress to permit drug control assistance to
Communist countries that are now in-
eligible for aid.
EXTENT OF THE PROBLEM
The scope of the addiction problem is
chilling. The financial costs alone exceed
$2 billion each year, but are inestimable
in terms of the human costs-the per-,
sonal suffering and mental anguish-
that the American society is forced to
bear:
HEROIN
Heroin addiction can be found in
cities, in suburban and rural areas, In
recent testimony before the Senate Sub-
committee on Alcoholism and Narcotics,
Dr. Bertram S. Brown, Director of the
National Institute of Mental Health,
said:
Affluent suburbs often thought to be free
of heroin associated with ghettos are sud-
denly aware of heroin use among their
youth.
Since possession and traffic in heroin is
illegal, it is difficult to know precisely the
number of heroin addicts in the country.
NIMH estimates the total at 250,000. The
House Select Committee on Crime puts
the figure at 200,000.
About half of the addicts in the coun-
try reside in New York State. In New
York City, narcotics addiction is the
greatest single cause of death of ado-
lescents and young adults between the
ages of 15 and 35. In the past 8 years,
New York City has lost more lives to
drugs than the entire State of New York
has lost to the war in Vietnam.
Heroin addicts need from $20 to $150
per day to support their habit. If New
York City's approximately 100,000 ad-
dicts spend an average of $35 per day on
heroin, the total exceeds $3.5 million per
day or $1.3 billion per year. Most turn
to crime to get the money to pay for the
heroin, since they ordinarily are unable
to earn enough to pay for it. One survey
in New York City showed that only 2
percent supported their habit through
gainful employment; 98 percent were in-
volved in criminal activity. If addicts
steel goods, they must steal five times the
cost of their habit, since stolen mer-
chandise brings only 20 percent of its
value when fenced. On a yearly basis,
an addict must steal $90,000 worth of
merchandise.
According to a recent, authoritative
estimate from the provost marshal's
office in Saigon, there are between 30,000
and 40,000 American servicemen in Viet-
nam who are heroin users-close to 15
percent of the troops stationed there.
One study showed that the average age
of the addicts included in the survey
was only 20.5 years and the length of
time addicted 5 months. With plenty of
cheap heroin available in Vietnam, the
servicemen have no trouble supporting
their habit. But when they return to this
country, their habit becomes more ex-
pensive-and most will have to steal to
pay for it. They are sentencing them-
selves to lives of crime.
Mr. President, at this point I would
like to recall my own personal experience
in Vietnam when in Danang I met with
the son of our distinguished colleague
from Virginia (Mr. BYRD). Harry Byrd,
III, was a marine stationed up in the
Danang area. When I asked about his
work he indicated he had supervisory
responsibilities in a brig. I asked him
what the most frequent charge brought
against. GI's in Vietnam was at that
time. This was of course several years
ago. He indicated that even at that early
time most occupants of the brig were
there for drug usage and drug abuse. He
indicated that because of the boredom of
01's and the fact that many were pro-
testing against the war and resented
being there and fighting a war in which
they did not believe, drug addiction, and
June 18, 1971
particularly, at that time, marihuana
smoking was possible because the enemy
itself saw to it that it was widely and
freely distributed. Trucks would come
through villages and when they would see
a group of GI's, dump off large quantities
of marihuana. And no one knows how
many of the harder drugs might have
been made similarly accessible.
This problem that I heard about first-
hand several years ago in Vietnam has
grown until it has now reached the crisis
stage.
Mr. RIBICOFF. Mr. President, will the
Senator yield?
Mr. PERCY. I yield.
Mr. RIBICOFF. Mr. President, I am
pleased to be a cosponsor of this legisla-
tion with the distinguished Senator from
Illinois. I am confident the legislation
will receive prompt hearings by the
Committee on Government Operations.
The problem of drug abuse in this
country is expanding and now wastes the
lives of hundreds of thousands of Amer-
icans every year, many of them poten-
tially our most promising young people.
The recent disclosures regarding addic-
tion in our Armed Forces in South Viet-
nam only highlight the pervasive impact
drugs have in our society.
The need for a concerted attack on
this problem is obvious. Until now, how-
ever, the Federal Government's drug
abuse prevention and control programs
have been fragmented and uncoordi-
nated. Responsibility was unfocused. As
late as last year coordination was being
handled by an ad hoc committee chaired
by a special assistant in the White House
with numerous other responsibilities.
Under the President's bill, 10 programs
from more than five departments and
agencies will be supervised by a Presi-
dential appointee working full time on
this matter in the White House. I hope
the creation of a new White House office
will lead to greater coordination and bet-
ter results.
An additional $155 million is to be
provided along with the powers needed to
oversee Federal drug abuse efforts effec-
tively. The Director of the new White
House office will have the authority to
prescribe policies, prepare budgets, and
set priorities.
I am pleased to cosponsor this legisla-
tion for the purposes of introduction and
am confident that it will receive prompt
and. thorough hearings by the Govern-
ment Operations Committee. Details of
this legislation aside, no one can dis-
pute the great need that led to its for-
mulation and introduction.
We must be careful not to deceive our-
selves, however. Enforcement needs to be
improved. Education and rehabilitation
are critical. But ultimately we must ad-
dress ourselves to the ills of our society
if we are to remove the underlying causes
of much of the drug addiction in this
country.
Why do so many feel the necessity of
the drug habit? Weneed to know, so we
can eliminate the causes that lead to
drug involvement.
Mr. PERCY. Mr. President, I should
like to thank my distinguished colleague,
who is chairman of the Government Op-
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June 18, 1971 CONGRESSIONAL RECORD - SENATE
S 9397
erations Subcommittee on Executive Re- Congress on "Marihuana and Health" To the extent that rehabilitation is re-
organization. I would like to express my from the Secretary of Health, Education, quired for Vietnam veterans, the Presi-
deep appreciation for his having become and Welfare determined that by the end dent:
the principal cosponsor of this legisla- of 1970, one college student in seven was Ordered immediate establishment of
tion. In fact, I am delighted at the in- using marihuana weekly or even more testing procedures and initial rehabili-
terest and support each of the other co- often. In a substantial number of colleges tation efforts to be taken in Vietnam.
sponsors of this bill has expressed. Also, and high schools, a majority of students Ordered the Department of Defense to
I should like at the same time to express used marihuana. provide rehabilitation services and the
my appreciation to Senator JAVXTS of New Marihuana is at the center of great rehabilitation of all returning discharged
York, another cosponsor of the legisla- national debate. For example, this week veterans who desire this help.
tion and who, together with Senator witnesses testifying in San Francisco be- Announced the request of legislation to
RTBrcoFF, will be handling some of the fore the National Commission on Mari- permit the military services to retain for
major, substantive matters in this area huana and Drug Abuse contradicted each treatment narcotic addicts due for dis-
in the Senate Committee on Labor and other on such questions as whether mari- charge.
Public Welfare. huana usage leads to experimentation Described the authority of the Direc-
This matter, we would trust, would be with harder drugs; whether marihuana tor of the Special Action Office to refer
referred to the Government Operations produces a toxic reaction in the central patients to private and Veterans' Admin-
Committee, because its essential purpose nervous system of adolescents; and istration hospitals as circumstances
is to set up a Special Action Office for whether marihuana should be legalized. require.
Drug Abuse Prevention, which falls with- We appear to know that marihuana Described authority to be sought by
in the jurisdiction of the Government is not physically addictive-though it the Special Action Office to make VA fa-
Operations Committee. By having over- may be psychologically habituating. We cilities available for drug rehabilitation
lapping jurisdiction in the Government also know that it leads to an alteration of to all former servicemen regardless of
Operations Committee and the Labor and time and space perception, a sense of the nature of their discharge.
Public Welfare Committee with ranking of euphoria, a loss of inhibition, exag- Asked Congress to increase the present
members in the persons of Senator RIBI- gerated laughter and attention loss. And VA budget by $14 million to permit im-
corr and Senator JAVrTS who serve on we know that it has relatively minor mediate initiation of the program.
both committees assume very active physiological effects. But, beyond this, we The President also announced a re-
leadership roles in both. I think we have know little in spite of the HEW report quest to Congress to amend the Narcotic
a coordinated effort which will insure and the spate of opinions that bombard Addict Rehabilitation Act of 1966 to
early hearings and prompt action by the us regularly. We await next year's report broaden the authority for use of metho-
Senate in this most .urgent area. of the National Commission on Mari- done maintenance programs under rigid
I again want to express my deep ap- huana and Drug Abuse before forming standards.
preciation to our esteemed colleague. a firm judgment on many of the issues He also instructed Dr. Jaffe to review
AMPHETAMINES concerning marihuana. immediately all Federal laws pertaining
In 1969, over 8 billion amphetamine A NEW OFFENSIVE to rehabilitation and announces he will
pills were produced and consumed in To counter the vicious cycle of addic- submit any legislation needed to expedite
the United States-enough for 40 doses tion, the President has proposed a "new the Federal rehabilitative role and cor-
of amphetamines for every man, wom- all-out offensive," dealing with the rect overlapping authorities.
an, and child in the United States. Ac- sources of supply at home and abroad EDUCATION
cording to the National Institute of and proposing the establishment of a An additional $10 million to increase
Mental Health, the total legitimate med- central authority within the Executive and improve education and training in
ical need can be measured in the thou- Office of the President to have overall the field of dangerous drugs,
sands. NIMH puts the number of per- responsibility for all major Federal pro- ENFORCEMENT
sons using oral amphetamines without grams of drug abuse prevention, educa- To expedite the prosecution of nar-
a medical prescription at about 5 mil- tion, treatment, rehabilitation, training, cotics cases, legislation will be sought
lion. Intravenous use of amphetamines and research programs. The authority permitting the Government to utilize in-
or methamphetamine is limited to about will be designated at the Special Action formation obtained by foreign police and
100,000 users. These "speed freaks" face Office of Drug Abuse Prevention. It will also will request legislation to permit a
an emergency when their drugs are with- be headed by a Director accountable to
drawn: to submit written findings of his
: an abrupt "crash." the President. analysis in drug cases in order to speed
BARBITURATES Because of the emergency nature of the process of criminal justice.
In 1969 over 4 billion barbiturate cap- this problem, the President has estab- Dangerous drugs and narcotics en-
sules were produced and consumed in lished this Office by Executive order, ef- forcement are to be stepped up with re-
this country-again, far more than fective yesterday, pending passage by the quests to Congress for; $2 million for
,would be needed for legitimate medical Congress of specific enabling legislation research and development of equipment
reasons. NIMH, estimates that 2 million which I am introducing today. and detection techniques; authorization
people take this drug regularly without I am deeply pleased to see that the and funding of 325 added positions in
medical need. Barbiturates often are President has announced the appoint- the Bureau of Narcotics and Dangerous
'~.sed in suicide attempts; accidental ov- ment of Dr. Jerome H. Jaffe, director of the
supplemental appropriations tions of
erdoses in combination with alcohol con- the drug abuse control program of the $25.6 million for the Treasury -
stitute another hazard. Barbiturates di- State of Illinois, to head this new office ment-about $7.5 million for intensified
minish the physical and mental re- in the temporary capacity of special con- investigation of large-scale traffickers;
sponses to such an extent that users are sultant to the President for narcotics approximately $18 million for Bureau of
endangering the general public when and dangerous drugs. Customs investigation and inspection ef-
performing such tasks as driving a car. Dr. Jaffe, 37, has been a leader in forts and for the pursuit and apprehen-
HALLUCINOGENS developing innovative techniques for the sion of smugglers.
Use of hallucinogens, such as LSD, treatment of heroin addiction, including NARCOTIC-PRODUCING PLANTS
which can cause birth defects, appears comprehensive approaches involving
leveling coff. ause Repetitive use of LTD methadone use. An article appearing in The President announced a request for
to be now is found among a relatively morning's edition of the New York $2 million for the Department of Agri-
y small Times entitled "Drug Abuse Fighter" culture for research and development of
number of individuals, although experi- describes in some detail the admirable herbicides to destroy growths of natural
xnentation by young drug abusers un- efforts of Dr. Jaffe in this area. narcotics-producing plants without ad-
fortunately continues to flourish. Apart from establishing the Special verse ecological effect.
MARIHUANA Action Office of Drug Abuse Prevention, INTERNATIONAL EFFORTS
According to NIMH, marihuana usage the President's message provides for a The President initiated a worldwide
is increasing rapidly. An estimated 10 comprehensive antidrug offensive, aimed escalation of existing efforts along with
~o 12 million Americans have used the at sources of supply and demand with new steps to secure international co-
drug at least once. The recent report to equal force. operation to control narcotics traffic.
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S 9398 CONGRESSIONAL RECORD -SENATE
Measures include; a request to the Di-
rector General of the World Health Or-
ganization to appoint a study panel on
-synthetics to replace opiates; a request
for $1 million for assistance to developed
nations in training enforcement officers;
a request to Congress to amend and ap-
prove foreign assistance acts permitting
assistance to Communist countries pres-
ently ineligible for aid in ending drug
tracking; a request to the Senate to
promptly ratify the Convention on Psy-
chotropic Substances recently signed by
the United States and 22 other nations;
a request to Congress to make additional
contributions, as needed, to the United
Nations Special Fund on the world drug
problem; the urging of multilateral sup-
port for amendments to the Single on-
vention on Narcotics enabling the Inter-
national Narcotics Control Board to ac-
quire narcotics information, conduct in-
quiries on drug activities, and requiring
signatories to embargo the export and/or
import of drugs to or from a particular
country failing to meet its obligations
under the Convention.
Finally, the President directed that
research efforts in the United States be
Intensified to develop a feasible substitute
for codeine.
NEED FOR t'IMELY ACTION
In introducing this legislation today, I
am joined in a totally bipartisan effort
with some of my most esteemed col-
leagues, among them Senators MCCLEL-
LAN, RIBIcoFF, JAVITS, SCOTT, ALLEN, GUR-
NEY, SAXBE, BYRD of West Virginia, BEALL,
BROCK, CHILES, JACKSON, MATHIAS,
Musicir, and ROTH. I am certain that
many other Senators will want to join
in this critical effort.
I would also like to point out how
grateful I am that the problem of drug
abuse has surfaced as a concern of all
Americans. No small thanks is due to the
tireless efforts of the junior Senator from
Iowa (Mr. HUGHES) and the distinguished
members of his Subcommittee on Alco-
holism and Narcotics who have devoted
countless hours to this matter.
I commend the President for his fore-
sight and initiative in addressing this
problem. I look forward to quick action
in the Government Operations Commit-
tee, on which I serve, in reporting otlt a
bill that incorporates whatever refine-
ments or additions are deemed appro-
priate. As the President stated:
Time is critical. Every day we lose com-
pounds the tragedy which drugs inflict on
individual Americans. The final issue is not
whether we will conquer drug abuse, but how
Soon. Part of this answer lies with the Con-
gress now and the speed with which it moves
to support the struggle against drug abuse.
As a final thought, we now are all too
aware of the pervasive extent of heroin
traffic among our GI's stationed in Viet-
nam. It is fatuous to speak of the drug
problem without alluding to the hellish
contribution of that war to the problem.
But let us turn now from a war that we
do not want, to a segment of society that
we do so earnestly want. That we want
to help.
We must redirect our attention and
our energies and our moneys, let we lose
our most cherished asset-lest we lose
our youth not only to the hateful clash
of war, but also to the pitiful whimper
of despair.
At this time, Mr. President, I ask
unanimous, consent that the text of this
legislation to establish a Special Action
Office for Drug Abuse Prevention be
printed in the RECORD, to be followed by
a section-by-section analysis of its pro-
visions. I also ask unanimous consent
that the New York Times article to which
I earlier referred, describing the work of
Dr. Jaffe, be printed in the RECORD.
There being no objection, the bill and
material were ordered to be printed in
RECORD, as follows:
S. 2097
A bill to establish a special action office for
drug abuse prevention to concentrate the
resources of the Nation in a crusade
against drug abuse.
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That this
Act may be cited as the "Special Action Of-
fice for Drug Abuse Prevention Act."
FINDINGS
SEC. 2. The Congress hereby finds-
(1) that drug abuse is rapidly increasing
In the United States and now afflicts urban,
suburban, and rural areas of this Nation;
(2) that drug abuse contributes to crime,
particularly to crimes of violence;
(3) that the adverse impact of drug abuse
inflicts increasing pain and hardship on in-
dividuals, families, and communities;
(4) that for these reasons the increasing
rate of drug abuse constitutes a threat to
national health and welfare and an emer-
gency requiring immediate and effective Fed-
eral Government response.
PURPOSE
SEC. 3. (a) It is the purpose of this Act to
focus the comprehensive resources of the
Federal Government and bring them to bear
on drug addiction and drug abuse with the
Immediate objective of promptly and sig-
nificantly reducing the incidence of drug ad-
diction and drug abuse in the Nation within
the shortest possible period of time.
(b) To accomplish these objectives (1) all
Federal drug abuse prevention, treatment,
rehabilitation, training, education, and re-
search activities will be placed under the di-
rection and policy-setting of a new Special
Action Office for Drug Abuse Prevention, es-
tablished in the Executive Office of the Pres-
ident; and (2) major drug abuse programs
will be centrally developed, funded,managed,
and evaluated to achieve maximum effective-
ness.
SPECIAL ACTION OFFICE FOR DRUG ABUSE
PREVENTION
SEC. 4. (a) There is hereby established in
the Executive Office of the President, an of-
fice to be known as the Special Action Office
for Drug Abuse Prevention (hereinafter in
this Act referred to as the office).
(b) There shall be at the head of the Of-
fice a Director of the Office (hereinafter re-
ferred to as the Director). He shall be ap-
pointed by the President, by and with the
advice and consent of the Senate, and shall
be compensated at the rate now or hereafter
provided for Level III of the Executive Sched-
ule (5 U.S.C. 5314).
(c) There shall be in the Office a Deputy
Director of the Office who shall be appointed
by the President, by and with the advice
and consent of the Senate, and shall be
compensated at the rate now or hereafter
provided for Level IV of the Executive Sched-
ule (5 V.S.C. 5315). The Deputy Director
shall perform such functions as the Di-
rector from time to time assigns or dele-
gates, and shall act as Director during the
June 18, 1971
absence or disability of the Director or in
the event of a vacancy in the office of the
Director.
. (d) There shall be in the Office not to
exceed three Assistant Directors who shall
be appointed by the Director and shall be
compensated at the rate now or hereafter
provided for Level V of the Executive Sched-
ule (5 U.S.C. 5316). Each Assistant Director
shall perform such functions as the Director
from time to time assigns or delegates.
CONCENTRATION OF FEDERAL EFFORT
SEC. 5. (a) The Director shall provide over-
all planning and policy, and shall establish
objectives and priorities, for all Federal drug
abuse training, education, rehabilitation, re-
search, prevention, and treatment programs
and activities (exclusive of law enforcement
activities and legal proceedings).
(b) In addition, the Director shall provide
overall planning, policy, direction, manage-
ment, and funding for all Federal drug abuse
training, education, rehabilitation, research,
prevention, and treatment programs and ac-
tivities (exclusive of law enforcement acti-
vities and legal proceedings) conducted pur-
suant to the authorities described in subsec-
tion (c) (1) of this section and programs and
activities designated by the President pursu-
ant to subsection (c) (2) of this section.
(c) As used in subsection (b) of this sec-
tion and all subsequent provisions of this Act,
the term "Federal drug abuse training, edu-
cation, rehabilitation, research, prevention,
and treatment programs and activities"
means-
(1) All such programs and activities (ex-
clusive of law enforcement activities and
legal proceedings) conducted pursuant to
the following-described provisions of law:
(A) The Narcotic Addict Rehabilitation
Act of 1966;
(B) Part D and Part E (to the extent that
such Parts pertain to drug abuse) of the
Community Mental Health Centers Act;
(C) Title I of the Comprehensive Drug
Abuse Prevention and Control Act of 1970;
(D) Section 502(a) (1) of the Comprehen-
sive Drug Abuse Prevention and Control Act
of 1970, to the extent that it pertains to
public education not involving law enforce-
ment;
(E) The Drug Abuse Education Act of
1970;
(F) Section 222(a) (9) of the Economic
Opportunity Act of 1964 and all other provi-
sions of that Act to the extent that they per-
ain to drug abuse;
(G) Becton 306(a) (2) of the Omnibus
Crime Control and Safe Streets Act of 1968,
to the extent that It pertains to drug abuse;
(H) The Manpower Development and
Training Act of 1962, to the extent that it
pertains to drug abuse;
(I) The Public Health Service Act, to the
extent it pertains to drug abuse; and
(J) Title 38 of the United States Code, to
the extent it pertains to drug abuse; and
(2) subject to the provisions of subsections
(d) and (e) of this section, such other Fed-
eral drug abuse related programs and ac-
tivities (exclusive of law enforcement ac-
tivities and legal proceedings) as the Presi-
dent may from time to time designate, in-
cluding those which constitute a part of some
larger program or activity.
(d) Whenever a designation is proposed
pursuant to subsection (c) (2) of this sec-
tion, a notice thereof shall be transmitted
to the Congress. Such designation shall be-
come effective on the thirtieth day (exclusive
of periods of adjournment or recess of either
the House or the Senate in excess of three
days) following such transmittal, but only to
the extent that, between the date of trans-
mittal of the proposed designation and such
effective date-
(1) there has not been enacted into law a
statute which otherwise deals with the pro-
gram involved;
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 June
17 9%9d For Release eaQQ/GQ9/OgSI NALDRECORD6RENATE 0003-7 S 9399
(2) neither House of the Congress has en- 1V as he may deem to be necessary to carry out by recess appointment, as the case may be.
acted legislation which specifically disap- the purposes of the Act. (b) The President may similarly authorize
proves the designation involved. (e) Nothing in the foregoing provisions of any such person to act as Deputy Director.
(c) Any such designation by the President this Act shall be construed as authorizing (c) The President may authorize any per-
may, accordance with Congress, the designation o- or permitting the Director to waive or disre- son who serves in an acting capacity under
tice transm to the made gard any requirement, including standards, the foregoing provisions of this section to
'operative on a date later than. the date on criteria, or cost-sharing formlae, prescribed receive the compensation attached to the
which that designation otherwise would have by law with respect to Federal drug abuse office in respect of which he so serves. Such
taken effect. programs or activities.
SEC. 6. (a) In carrying out his functions
i
h
VENTION AND TREATMENT PROGRAM,
Lion from the United States to which such
w
t
respect to the programs and activities
o
d
d
SEC. 7. -(a) The Director is authorized to
person may be entitled.
c
vere
un
er section 5(b) of this Act, the
Director shall-
make grants to any public or non-profit pri-
t
TRANSFER OF FUNDS
(1) prescribe policies
requirements
cri-
va
e agency, organization, or institution and
to enter into contracts
ith
SEC. 10. The Director of the Office of Man-
,
,
teria and standards
regulations
and
ro-
w
any agency, or-
anization
i
i
agement and Budget is authorized to
rovide
,
,
p
cedures for the administration and manage-
g
, or
nst
tution, or with any
Individual-
p
for the transfer
to the Office of such un-
ment of such programs and activities;
(1) to develop and demonstrate new a
expended
of appro
ns, and of
(2) prepare budget requests for such pro-
proaches, techniques, and methods with re-
here
other
funds,
,
available
r made
grams and activities;
spect to drug abuse prevention, treatment
drug abuse t
available for
Federal
g abuse training,
(3) determine priorities for the use of
,
and rehabilitation;
education, rehabilitation, research, preven-
funds for such programs and activities;
(2) -to evaluate those new approaches,
tion, treatment programs and activities, as
piementation to Federal departments and (3) to foster the establishment of new or
i
agenc
es and establish an implementation expanded drug abuse programs and actlvi- APPROPRIATIONS AUTHORIZED
plan for each program setting forth policies, -ties; SEC. 11. There are hereby authorized to be
procedures, performance requirements, man- (4) to acquire, construct, improve, repair, appropriated to the President such sums as
power levels, key personnel qualifications, operate, or maintain facilities, and to acquire may be necessary to carry out the purposes of
time schedules, and other requirements; and improve real property, necessary to the this Act. Any of those sums may be appro-
(5) maintain overall supervision of such establishment or maintenance of drug abuse priated without regard to fiscal year limita-
programs and activities and evaluate. the per- programs and activities; and tions.
formance and results achieved by the Federal (5) to Otherwise carry out the purposes of JOINT FUNDING
departments and agencies, and recommend this Act.
organizational,
organizational, managerial, personnel, and (b) To the extent he deems it appropriate, SEC. 12. Notwithstanding any other-
program changes whenever he deems such the Director may require the recipients of a by o more aw, where funds are made av elab d
available
changes to be advisable; grant or contract under this section to con- by mrthan one Federal to b used
(6) take such steps as may be necessary tribute money, facilities, or services for car- individual n agency, organization, l dragon, abuse
to evaluate and assure the most effective rying out the program and activity for which nto carry out a Federal drug abuse
utilization of all drug abuse programs and such grant or contract was made. training, education, rehabilitation, research,
activities conducted by Federal departments (c) Payments under this section pursuant prevention, or treatment program or activity,
and agencies, and by public or private agen- to a grant or contract may be made (after f
any one may of be ehd Fg designated agencies r ctor to
ties and organizations engaged in such ac- necessary adjustment, in the ease of grants, funds un by the Di rector to
tivitles under Federal grants or other assist- on account of previously made over-payments act for all in administering the funds ad-
Federal and or under-payments) in advance or bway of ranted. In such cases, a single non-(7) strengthen coordination among Fed- reimbursement, and in such Install m share requirement may be established ac-
e ents and cording to the proportion of funds advanced
eral departments and agencies engaged in on such conditions as the Director may deter-
non-law enforcement efforts involving drug mine. by each Federal agency, and any such agency
abuse prevention and control, and assure (d) Notwithstanding any other provision may waive any technical grant or contract
that those nonlaw enforcement efforts are of law, any Federal department or agency requirement (as defined in such regulations)
coordinated with related law enforcement (including the Veterans Administration) which is inconsistent with the similar re-
efforts being conducted by other Federal de- may enter into grant or contractual arrange- quirement of the administering agency or
partments and agencies. ments with the Director and pursuant to which the administering agency does not
(b) (1), The Director may, with the ap- such a grant or contractual' arrangement, impose.
proval of the President (A) exercise any may exercise any authority or use any per- VOLUNTARY SERVICE
powers or perform any functions conferred sonnel or facilities otherwise available to SEC. 13. The Director is authorized to ac-
by any of the statutory provisions enumer- such department or agency for the perform- cept and employ in furtherance of the pur-
ated in section 5(c) (1), or any statutory anee by it of related functions. pose of the Act or any Federal drug abuse
provisions relating to programs and activi- PERSONNEL SPECIAL PERSONNEL- training, education, rehabilitation, research,
ties designated by the President pursuant to EXPERTS AND CONSULTANTS prevention, nr treatment program or activity, not section 5(c) (2), or (B) provide for their SEC. 8 (a) The Director may, subject to the withstanding aa
services
a provisions of section 3670
exercise or performance by an officer of any o withsnthe provisions o
3679
Federal department or agency other than civil service and classification laws, select, (b) of the Revised statute (31 U.S.C. 665
the department or agency on whom such employ, and fix the compensation of such (b)),
powers or functions are conferred by such officers and employees, including attorneys, EFFECTIVE AND TERMINATION DATE
provisions, as are necessary to perform the functions SEC. 14 (a) The provisions of this Act shall
(2) To the extent that the Director or his tinned in him and to prescribe their func- take effect thirty days after the Director or
function designee exercises to powers or performs any (b) The Director may, without regard to Acting Director first takes office or on such
pursuant paragraph (1) of this the civil service and classification laws, se- earlier date as the President may prescribe
subsection, the Director or his designee, as lest, appoint, and employ not to exceed five and publish in the Federal Register, except
the case may be, may exercise in relation to officers and to fix their compensation at rates that any of the officers provided for in sec-
those powers and functions any related not to exceed the rate now or hereafter pre- tion 4 of this Act may be nominated and
authority or part thereof available by law, scribed for GS-18 of the General Schedule by appointed and any of the interim officers
including appropriation acts, to the official ,section 6332 of Title 5 of the United States provided for by section 9 may be authorized
or agency from which, such power or func- Code. to serve, at any time after the date of enact-
tions were derived. (c) The Director may obtain services as au- went of this Act.
(c) Except as otherwise provided by the thorized by section 3109 of Title 5 of the (b) This Act shall terminate on June 30,
Director, no Federal officer, department or United States Code, at rates not to exceed 1974, unless extended by the President, in
agency shall be deemed to be relieved of any the rate now or hereafter prescribed for OS-
or case it shall expire on June 30, 1976,
responsibility that such officer, department, 18
or such earlier d
t
f th G
lt
a
e a
o
eneral Schedule by section 5332 of
er June 30, 1974, as
or agency may have had on the date of enact- e
meat Of this Act with respect to Federal Title 5 of the United States Code. the President may prescribe and publish in
drue abuse trainins wi?ra+lnn nAheY I,a4 PRAMcrmrnTTAT onn,rtcTnwrc the Federal Register.
(d) The Director may require departments any person who, immeddatel J wu ~. the SECTION-BY-SECTION ANALYSIS
y prior t7 the A bill to
&n( agencies engaged in any activity tments date of enactment of this Act, held a position establish a Special Action Office
tag Federal drug abuse training, education, in the executive branch of the Government for drug abuse prevention
rehabilitation, research, prevention, and to act as the Director of the Special Action FINDINGS
't eetment to provide him with such Infor- Office for Drug Abuse Prevention until the Sec. 2. Sets forth the reasons for concern
matfgn and reports, and to conduct on a Office of Director is for the first time filled about the problems of drug abuse and its
reimbursable basis such studies and surveys, pursuant to the provisions of this Act or threat to National health and safety.
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 Approved For Release 2000/09/08 : CIA-RDP73B00296R000400080003-7
S 9400 CONGRESSIONAL RECORD - SENATE June 18, 1971
PURPOSE criteria, cost-sharing formulae or other reg-
Sec. S. Cites the need for creation of a new ulations which otherwise govern the conduct
project office to plan, fund, manage pro- of drug abuse activities.
grains and activities of drug abuse preven- GRANTS AND CONTRACTS FOR DRUG ABUSE
tion, treatment, rehabilitation, training, edu- PREVENTION AND TREATMENT PROGRAMS
cation and research. Sec. 7. (a) Authorizes the Director to give
SPECIAL ACTION OFFICE FOR DRUG ABUSE -rants and make contracts for drug abuse
PREVENTION activities. This authority is in addition to
Sec. 4. (a) Establishes the Special Action authority to carry out programs by agree-
Office for Drug Abuse Prevention. ment with other agencies as provided in Sec.
Sec. 4. (b) Designates a Director to be ap- 5 and. 6. It includes authority to let grants to
pointed by the President by and with the states and' local governments and provide
advice and consent of the Senate. the. Director with alternative ways of carry-
Sec. 4. (c) Designates a Deputy Director, ing out programs where urgency, cost, special
also appointed by the President who Will be vktlls or other factors dictate.
the "alter ego" of the Director. Sec. 7. (b) Provides that the Director may
Sec. 4. (d) Three Assistant Directors are require sharing of costs of drug abuse pro-
authorized to be appointed by the Director r-rams.
to senior positions in the management of the Sec. 7. (c) Allows for advance payments
office. or Installments as matters of administrative
CONCENTRATION OF FEDERALLFFORT convenience in expediting grant or contract
business.
Sec. 5. (a) Establishes the overall author- Sec. 7. (d) Provides that the Director enter
icy-setting, the Director for and overall priorities for pol into grant or contract arrangements for nec-
Federal se alido, esti cpeogea and p ex- all - essary drug abuse program activity even
cluding law domestic programs i drug activities. where other laws or regulations might other-
inter ationai drug ab.use are Note the also "vise rule out these arrangements. This pro-
vision allows other agencies to accept these
Sec. 5. (b) Specifies that in addition to the
overall planning and policy role described in
5(a), the Director will also assume direct
management authority over certain major
drug abuse programs undertaken under the
authorities listed in Sec. 5(c) (1). This in-
cludes programs now in operation in depart-
ments and agencies, plus new programs
which may be initiated under these authori-
ties to meet future program needs.
Sec. 5. (b) (2) Establishes *eneral author-
ity to assume management lit 'any other
drug abuse program the President may
designate.
See. 5. (d) Where a new program not
covered by the authorities of See. 5(c) (1) is
proposed, a notice will be transmitted to- the
Congress. The designation will become effec-
tive after 30 days if neither House of the
Congress enacts legislation disapproving the
designation.
Sec. 5. (e) Specifies that the actual start
of operations of a newly designated program
may be delayed beyond the date on which it
might otherwise have taken. This assures
that transfers of operations can be made
when the action office is ready to assume
responsibility.
AUTHORITY OF DIRECTOR
Sec. 6. (a) Details the specific authorities
to be exercised by the Director for those
programs and activities over which he
assumes management authority under the
provisions listed in Sec. 5(b) of this Act.
By means of an Implementation Plan, the
Action Office and each implementing agency
will agree on the terms and conditions of
operation. The Director can then evaluate
the performance of each program to deter-
mine whether the implementing agency is
successfully meeting the necessary perform-
ance criteria. This critical provision Is the
most important means available to the
Director to assure compliance with program
objectives.
Sec. 6. (b) Specifies that the Director is
authorized to exercise any of the authorities
specified in Sec. 5(c) (1) directly or to assign
them to any Federal agency. Thus, a program
which is not being properly carried out in
one agency may be reassigned to another
agency for implementation.
Sec. 6. (c) Points out that the existence
of the special action office does not relieve
other agencies of the need to carry Out drug
abuse programs which meet their broad
responsibilities.
Sec. 6. (d) Allows the Director to obtain
necessary reports, surveys, studies or other
information from agencies which have such
data of value to the Special Action Office.
Sec. 6. (e) Retains such things as standards,
arrangements under specifications estab-
lished by the Special Action Office and to use
personnel and facilities otherwise available
to carry out these arrangements.
PERSONNEL-SPECIAL PERSONNEL-EXPERTS AND
CONSULTANTS
Sec. 8. (a) Allows the Director to employ a
staff of civil service personnel under regular
civil service laws and regulations.
Sec. 8. (b) Permits the hiring of five key
executive people and fixing of their compen-
ration. at rates not to exceed that of a GS-18.
This permits special flexibility In hiring a
small number of special technical or man-
agement people.
Sec. 8. (c) Allows the use of consultants
at rates not to exceed that for 08-18's.
TRANSITIONAL PROVISIONS
Sec. 9. (a) (b) Provides for designation of
Federal officials as acting Director and deputy
director until these offices are filled for the
first time.
Sec.. 9. (c) Provides full compensation for
acting officials.
TRANSFER OF FUNDS -
Sec, 10. Provides for orderly transfer of
funds to the Special Action Office on assump-
tion of program and budget responsibility.
APPROPRIATIONS AUTHORIZED
Sec. 11. Provides for authorization of ap-
propriations and for the appropriation of "no
year" funds as an important element of
budget flexibility for the office.
JOINT FUNDING
Sec. 12. Permits joint funding by more than
one agency of drug abuse programs and ac-
tivities, including a portion of non-Federal
funds, and permits waiver of inconsistent
technical regulations and requirements.
VOLUNTARY SERVICE
Herbert Jaffe was asked today just after Pres-
ident Nixon named him to head a new White
House office on drug abuse control. "With the
same unrealistic optimism with which I dealt.
with Illinois bureaucracy," the doctor re-
plied. When he arrived in Illinois in 1966
from the Bronx, there wasn't a single state-
supported bed for the treatment of drug ad-
dicts in Illinois. The first year he got 300
beds. Now there are 1,800.
Thirty-seven years old and even younger
in appearance, Dr. Jaffe is an unpretentious,
humorous man who affects outrageous ties.
including the psychedelic one he wore to
the White House today. He takes on big jobs
in a cool, offhand way.
His wife, the former Faith Kessel of Phila-
delphia, likes to tell how he got into medi-
cine. In high school in Philadelphia, he re-
calls, he was surrounded by so many bright
and ambitious boys that he decided that,
given the heavy competition, he would be-
come a car mechanic.
"But his family decided otherwise." she
said. "They persuaded. him to apply for ad-
mission at Temple University, and he says he
agreed because the application was only one
page long and the college was only two stops
away on the streetcar."
Four years later he graduates; first in a
class of a thousand, although he had to fi-
nance his medical studies with two jobs, as
a short order cook in a diner and playing the
string bass in a band.
Throughout his earlier school years he had
worked during his spare time in the grocery
on the Lower East Side of New York run by
his father, an immigrant from Lithuania.
From college days until the present, Jerome
Jaffe has been working overtime. He has no
hobbies, takes no exercise, brings work home
with him at night, never smokes, and takes
a drink only out of social courtesy.
Dr. Jaffe spent five years at the Albert
Einstein College of Medicine in New York,
first as postdoctoral fellow, later as resident
in psychiatry, assistant professor of phar-
macology and instructor In the department
of psychiatry. Then he was invited to be-
come assistant professor in the department
of psychiatry of the University of Chicago.
"I was looking forward to some quiet la-
boratory work and animal research," he re-
calls. But the lab was not ready yet, and he
filled in the time by drawing up a program
for drug abuse control in the State of Illi-
nois. To his surprise Gov. Otto Kerner asked
him to put the program into effect.
Today he takes no individual patients, but
"I began directly taking care of people, and
I didn't forget," he observes. "Every day, I
talk to people who have been through our
program-drivers, stockmen, all kinds, many
of whom want to get relatives into treat-
ment."
"Above all," his wife says, "he is a hu-
mane man. He keeps up with friends who
date back to high school."
In Chicago the Jaffes live in a big, com-
fortable, old Tudor house on the South Side
because it is only five minutes from the
University of Chicago and he has never lived
Sec. 14. (a) Provides for the office to start
operations 30 days after the Director takes
office. This precludes the office being forced
to operate without a head, and allows the
Director some time to make appropriate
preparations.
Sec. 14. (b) Provides that the office will be
temporary, operating for a period of three
years unless the President chooses to extend
its life for an additional two years at his
discretion.
From the New York Times, June 1.8, 1971]
DRUG ABUSE FIGHTER: JEROME HERBERT JAFFE
WASHINGTON.-"How do you expect to deal
with Washington bureaucracy?" Dr. Jerome
By Mr. BYRD of West
(for Mr. WILLIAMS) :
S. 2098. A bill to amend title II of
the Social Security Act to permit the
payment of benefits to a married couple
on their combined earnings record where
that method of computation produces
a higher combined benefit. Referred to
the Committee on Finance.
COMPUTATION OF SOCIAL SECURITY BENEFITS
BASED UPON COMBINED EARNINGS
Mr. BYRD of West Virginia. Mr. Pres-
ident, Iask unanimous consent to intro-
duce a bill on behalf of the junior Sena-
tor from New Jersey (Mr. WILLIAMS) and
to have a statement by the distinguished
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 June 80pp-pd For R ~Qt C~BO@t~ si4S~0S~r~ds
The objective of the new policy is to induce
foreign concerns to take the Antidumping
ASft. I,po account before they engage in
flormal situations fair value shall be deter-
mined by comparing the ex factory home
market price of the merchandise under in-
vestigation with the ex factory price at which
the merchandise is sold in the United States.
If the price in the United States is less than
the home market price, then there are "sales
at less than fair value" within the meaning
of the statute.
The Act also states that in situations where
the quantity of merchandise sold in the
home market is so small in relation to the
quantity sold for exportation to countries
other than the United States as. to form an
inadequate basis for comparison, then third
country price should be used as the basis for
comparison.
The Antidumping Regulations provide that
generally for purposes of determining what
constitutes an "inadequate basis of com-
parison" for fair value purposes, home mar-
ket sales will be considered to be inadequate
if less than 25 percent of the non-U.S. sales
of the merchandise are sold in the home mar-
ket.
The selection of home market or third
country price for fair value comparison can
easily be crucial to the results of antidump-
ing investigations, for frequently home mar-
ket price tends to be higher than third coun-
try price. This is particularly true where
merchandise is sold in a protected home mar-
ket and, when sold in third countries, is ex-
posed to the vagaries of world competition.
It has been Treasury's experience that
cases arise. where sales in the home market
are adequate as a basis for fair value com-
parison, even though less than 25 percent of
the non-U.S. sales are sold in the home mar-
ket. From a technical standpoint, the exist-
ing regulations provide for this . situation,
since the 25 percent rule is introduced by
the adverb "Generally." Examination of the
precedents, however, revealed that the Treas-
ury has not, in recent years at least, made
an' exception in applying the 25 percent rule.
This left the Treasury with two alterna-
tives, It could have ignored the previous in-
terpretations of the Antidumping Regula-
tions which had, in effect, applied the regula-
tions as if the word "Generally" were not
there, or it coud propose a change in the
Antidumping Regulations to eliminate the
25 percent rule. We chose the latter course.
The proposal was published in the Federal
Register of April 27, and is currently open
for comment by interested persons. Any com-
ments received will be carefully considered
before we take final action on this proposal.
A LOOK INTO THE FUTURE
In my judgment, we have only come to
the end of the beginning of the rejuvenation
process. But, I believe we have made a solid
start.
Let me take a final brief moment to touch
upon what I see happening in the future. We
have taken steps to initiate a fresh examina-
tion of the Treasury's antidumping proce-
dures and regulations to see what more can
be done. The regulations were substantially
revised in mid-1968 after a broad review,
with the dual objectives of conforming the
Treasury's procedures to the requirements
of t}ie International Anti-Dumping Code,
and also of baying the regulations imple-
Sient in, clear and precise language the ob-
jectives of the Antidumping Act. With al-
most three additional years of experience
wilder the regulations, as then revised, it is
now appropriate-to stop and take a new look
to see whether additional changes may be ap-
propriate. A Notice of Proposed Rule Making
to this' effect was published in the Federal
Register -6i 'April 13, 1971.
E 5305
Sixty days are being allowed for the sub- sity) of the article entitled, "The New opium
i
i
m
ss
on of comments. I would assume that
many persons present here today-if you are
not already aware of the Treasury's invita-
tion to submit comments-may wish to do
Let me emphasize that the Treasury De-
partment continues, as always, to adhere to
its policy of equitable administration of the
Antidumping Act. With the increased per-
sonnel assigned to this field and modernized
procedures and policies, we shall speed up
antidumping investigations, thereby making
administration of the law more effective-all
this without sacrificing equity.
Let me also emphasize that the Treasury
Department and the Administration are
strongly opposed to having the Antidumping
Act transformed into an instrument of pro-
tectionism. On the other hand, we are
equally strongly opposed to allowing foreign
firms to injure U.S. industry by unfair price
discrimination. It is with the latter objec-
tive in mind that the Treasury Department
introduced the changes in the administra-
tion of the Antidumping law, which I have
discussed with you today. To the extent that
we succeed in our objective, the Treasury's
rejuvenation of the Antidumping Act will
become an increasingly important influence
in favor of a freer international trade policy.
In conclusion, I would like to repeat a
statement made by Secretary Connally on
May 17 before the Subcommittee on Inter-
national Trade of the Senate Committee on
Finance:
"The efforts to foster increased competi-
tiveness in our economy must be actively
pursued in the context of fair and liberal
trading arrangements."
RAMPARTS MAGAZINE MISREPRE-
SENTS ROLE OF CENTRAL INTEL-
LIGENCE AGENCY IN FIGHTING
AGAINST IMPORTATION OF DAN-
GEROUS DRUGS
HON. CHARLES S. GUBSER
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 2, 1971
Mr. GUBSER. Mr. Speaker, recently
Ramparts magazine published an article
which, like so many other articles which
appear in new left publications, attempt-
ed to discredit established agencies of the
Government, including the Central In-
telligence Agency. Unfortunately, the
Stanford Daily, the newspaper pub-
lished by students at Stanford Univer-
sity, saw fit to lend credibility to this
article by reprinting it.
A tearsheet from the Stanford Daily
was sent to me by a constituent and I
submitted it to the Bureau of Narcotics
and Dangerous Drugs with a request for
comment. Under date of May 27 I re-
ceived a reply from Mr. John E. Ingersoll,
director of the Bureau of Narcotics and
Dangerous Drugs. His letter should be
brought to the attention of all responsible
Members of Congress and the press since
it certainly contradicts the implications
contained in the Ramparts magazine
article. Mr. Ingersoll's response follows:
Hon. CHARLES S. GUBSER
U.S. House of Representatives
Washington, D.C.
DEAR CONGRESSMAN GUBSER: This is in
response to your letter of May 21, 1971, which
enclosed a tearsheet from the "Standard
Daily" (a publication of Stanford Univer-
War," as reprinted from "Ramparts Mag-
azine."
Charges made in the article appear to be
a part of a continuing effort to discredit
agencies of the U.S. Government, such as the
U.S. Military, the FBI, the CIA, and the De-
partment of State, all of which are, in point
of fact, working actively with the Bureau of
Narcotics and Dangerous Drugs (BNDD) in
our worldwide effort to curtail international
drug traffic.
Actually, CIA has for sometime been this
Bureau's strongest partner in identifying
foreign sources and routes of illegal trade in
narcotics. Their help has included both direct
support in intelligence collection, as well as
in intelligence analysis and production. Liai-
son between our two agencies is close and
constant in matters of mutual interest. Much
of the progress we are now making in iden-
tifying overseas narcotics traffic can, in fact,
be attributed to CIA cooperation.
In Burma, Laos, and Thailand, opium is
produced by tribal peoples, some of whom
lead a marginal existence beyond the polit-
ical reach of their national governments.
Since the 1950's, this Southeast Asian area
has become a massive producer of illicit
opium and is the source of 500 to 700 metric
tons annually, which is about half of the
world's illegal supply. Up to now, however,
less than ten percent of the heroin entering
the United States comes from Far Eastern
production.
The dimensions of the drug problem and
the absence of any strong political base for
control purposes has been a dilemma for
United Nations opium control bodies op-
erating in Southeast Asia for many years.
Drug traffic, use, and addiction appears to
have become accepted as a fact of life in this
area and, on the whole, public attitudes
are not conducive to change.
The U.S. Government has been concerned
that Southeast Asia could become the major
source of illicit narcotics for U.S. addicts
after the Turkish production is brought
under control. The Bureau of Narcotics and
Dangerous Drugs, with the help of CIA,
DOD, and the Department of State, has been
working to define and characterize the prob-
lem so that suitable programs to suppress
the illicit traffic and eliminate illegal opium
production, such as the proposed United
Nations pilot project in Thailand, can be
implemented.
It is probable that opium production in
Southeast Asia will be brought under effec-
tive control only with further political de-
velopment in these countries. Nevertheless,
in consideration of U.S. Military personnel
in the area, as well as the possibility that
opium from this area may become a source
for domestic consumption, concerned U.S.
Agencies, including CIA, Bureau of Customs,
DoD, and State, are cooperating with BNDD
to work out programs to meet the immedi-
ate problem as well as provide longer term
solutions.
Since the subject matter of your letter
concerns CIA, I have taken the liberty of
furnishing a copy along with my reply to
Director Richard Helms.
Sincerely,
JOHN E. INGERSOLL,
Director.
As an enclosure to his letter, Mr. In-
gersoll included a paper entitled "Recent
Trends in the Illicit Narcotics Market
in Southeast Asia." This should also be
of interest .to every person who is con-
cerned about this problem and I there-
fore include the text herewith:
RECENT TRENDS IN THE ILLICIT NARCOTICS
MARKET IN SOUTHEAST ASIA
1. The reported increasing incidence of
heroin addiction among U.S. servicemen in
Vietnam and recent intelligence indicating
that heroin traffic between. Southeast Asia
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E 5306 CONGRESSIONAL RECORD - Extensions oT emar s June 2, 1971
and the United States may also be increas- country. However, large areas of production 15. The typical refinery is on a small trib-
ing suggest that Southeast Asia is grow- bi Phong Saly, Houa Than, and' Xiang utary of the Mekong River in an isolated
ing in importance as a producer of heroin. Khoang have' fallen under the control of the area with a military defense perimeter guard-
While this phenomenon in part reflects im- Patliet Lao and North Vietnamese. ing all ground approaches. Most of these re-
provement in Information available in re- 9. The trade in Northwest Laos is less well fineries operate under the protection of the
cent months to the U.S. Government, there structured and organized for significant corn. various military organizations in the region,
are also good indications that production of mercial exploitation. There are no advance or are owned or managed by the leaders of
illicit narcotics in Southeast Asia has in- purchasing agents or pick-up caravans. The these military groups. The KKY units pro-
deed risen in 1971. harvested opium and the poppy plants which tect and operate most of the refineries in
BACKGROUND are ground up for smoking are transported Burma. Leaders of these groups also hold
2. The Burma, Laos, Thailand border area, to nearby village markets by the growers an ownership interest in many of these fa-
known also as the' "Golden Triangle," , themselves. In highland market places the cilities. In Thailand, the refineries appear to
world's largest opium raw opium and its by-product are used open- be operated by units of the KMT irregulars,
considered po ly as currency. Ethnic Chinese merchants are whereas in Laos, most of the refineries oper-
producing one of regions. the This region normally am t11e traditional purchasers of the opium ate under the protection of elements of the
counts for about 700 tons of opium annual- products throughout Laos. The products they Royal Laotian Armed Forces (PAR). While
ly or about one-half of the world's total il- collect are transported to population cen- the management and ownership of the Lao-
licit output. A substantial proportion is con- ters and also to processing plants along the tian refineries appear to be primarily in the
sumed within the region. Burma, by far Mekong River by travelers, particularly gov- hands of a consortium of Chinese, some re-
the largest producer of opium in this region, ernment soldiers, who have the most mobil- ports suggest that a senior FAR officer may
accounts for about 400 tons annually. ity and access to air travel in the area, and hold an ownership interest in a few of these
BURMA refugees. Opium produced in the Commu- facilities.
3. Production in Burma is concentrated nist-controlled areas also find its way into 16. Most of the narcotics buyers in the tri-
in the Eastern and Northern parts of Shan the regular marketing channels. border area are ethnic Chinese. While many
State and in the Southwestern part of Ka- DISTRIBUTION AND REFINERIES of these buyers pool their purchases, no large
chin State. Poppy fields cover the rugged 10. The KMT irregular "armies" and the syndicate appears to be involved. The opium,
slopes in Eastern Than State around Keng Burmese Self Defense Forces (KKY) are the morphine base, and heroin purchased in this
Tung and in Northern Shan State from most important trafficking syndicates in area eventually finds its way into Bangkok,
Lashio east and north to the China border. Northern Southeast Asia. The KMT irregu- Vientiane, and Luaing Prabang, where addi-
The latter territory, comprised of the former Tars--formerly the remnants of the Chinese tional processing may take place before de-
Wa and Kokang feudal states, is now a cen- Nationalist forces which retreated across the livery to Saigon, Hong Kong, and other inter-
ter of insurgency directed against the Bur- Chinese border in 1949-now composed national markets.
mese government, with much of the area un- largely of recruits from the local population, 17. Much of the opium and its derivatives
der insurgent control. have a combined strength of between 4,000 transisting Thailand from Burma moves out
4. The growing season varies with the al- and 6,000 well-armed men. The largest force, of such Northern Thai towns as Chiang Rat,
titude, but the planting season generally with an estimated strength of 1,400 to 1,900, Chiang Mai, Lampang, or Tak by various
falls during the months of August and Sep- is the Fifth Army. The second largest with modes of ground and water transport. These
tember, with the harvest some seven months a troop strength of. between 1,200 and 1,700 narcotics, along with those produced in Thai-
later during February and March. At har- is the Third Army. The headquarters of both land, are smuggled into Bangkok for further
vest time the women of the hill tribes slit armies are located in a-remote part of North- refinement into morphine or heroin. A con-
the poppies and collect the raw opium by ern Thailand between Fang and Mae Sai. It siderable quantity of the raw opium and
hand. The opium plants themselves are is estimated that these two KMT irregular morphine base is sent by fishing trawler from
ground into a compound for smoking. In forces control more than 80 percent of the Bangkok to Hong Kong during a.period from
Northeast Burma, the raw opium is packed )piuni traffic from the Shan State. about 1 January to 1 May. During this pe-
by the growers and traded to itinerant Chi- 11. The KKY have been major competitors riod, approximately one fishing trawler a
nese merchants who transport it to major of the KMT irregulars in the opium trade. day-carrying one to three tons of opium
collection points, particularly around Lashio The KKY are comprised of former Shan State and/or quantities of morphine base-leaves
and Keng Tung. Agents of the major en- insurgents and bandits who have allied Bangkok for Hong Kong. The boats proceed
trepreneurs circulate through the hill coun- themselves with the Burmese government to the vicinity of the Chinese Communist-
try shortly after harvest time arranging for against both the KMT and Chinese Commu- controlled Lema Islands-15 miles south of
payment and pickup. Payment is often in nist-backed insurgents. In return the gov- Hong Kong-where the goods are loaded into
the form of weapons and ammunition, al- ernment of Burma allowed them to pursue Hong Kong junks.
though gold and silver rupees are also used. their opium trafficking activities. 18. Opium and its derivatives which move
5. The opium harvested in Shan, Wa, and 12. The Shan States Army, an Insurgent through Laos are transferred from the
Kbkand areas is picked up by caravans that group, is also heavily involved in the opium Mekong River refineries by river craft and
are put together by the major insurgent business. it maintains several camps in FAR vehicles to Ban Bonet Sal, further
leaders in these areas. The caravans, which Northern Thailand where opium I. marketed downstream on the Mekong in Laos, from
can include up to 600 horses and donkeys for weapons and military supplies. where it is transported on Royal Laotian Air
and 300 to 400 men take the opium on the 13. About 140 tons of raw opium is nor- Force (RLAF) aircraft to Luaing Prabang
southeasterly journey to the processing xnally transported annually out of Northeast or Vientiane. From Vientiane narcotics are
plants that lie along the Mekong River in Burma to foreign markets. Most of this usually sent via RLAF aircraft, as well as
the Tachilek (Burma) -Mae Sai (Thailand) - opium is stored or processed in the Mekong Air Laos, to other cities in Laos such as
Ben Houei Sai (Laos) area. Caravans carry- River tri-border area before transiting Thai- Savannakhet or Pakse or to international
ing in excess of 16 metric tons have been land and boos. Tachilek, Burma is probably markets. A considerable portion of the Lao-
reported. the most important transshipment point in tian produced narcotics is smuggled into
THAILAND the border area. In 1970, out of a total of 123 Saigon on military and commercial air
6. Opium-growing areas in northern Thai- tons reportedly shipped out of Northeast flights, particularly on Royal Air Laos and
land are located in the upland tracts cc- Burma, 45 tons was received in the Tachilek Air Vietnam. Although collusion between
cupied by various tribal groups. The pro- area. In the first two months of 1971, 58 out crew members and air line agents on one
vinces of Ching Mai, Chiang Rai, and Nan, of a total of 87 tons had Tachilek as its desti- hand and individual narcotics smugglers on
which have the largest concentration of nation. Other important transshipment the other has been reported, poor handling
Meos, produce most That opium. Illicit opium points appear to be located in the vicinity of commercial cargo and the laxity of Lao
production in Thailand is estimated at 200 of Ban Bonet Sai, Laos, and Mae Salong, customs control in Vientiane and other sur-
tons. Thailand. reptitious loading of narcotics aboard com-
LAOS 14. There appear to be at least 21, opium mercial flights.
7. Another, less productive, opium growing refineries of various sizes and capacities lo- RECENT CHANGES IN THE AREA
area is along the 2,500 to 4,500 foot high cated in the tri-border area, of which about
mountainsides of Northwest Laos. The opium 7 are believed to be able to process to the 19. There are tentative Indications that
cultivated by the Meo in this area is of a heroin stage. The most important are located larger quantities of raw opium may now be
relatively lower grade and thus less suit- in the areas around Tachilek, Burma, Ban moving into the tri-border area for refining
able for refinement into morphine base or Houei Sal and Nam Keung, Laos, and Mae and that larger quantities of this raw opium
heroin. In these areas where the tribesmen Salong, Thailand. The best known, if not are now being refined into morphine base
have been encouraged to grow corn, the pop- largest of these refineries is the one at Ban and heroin in this area. As suggested in para-
pies are planted among the corn. When the Houel Tap, Laos, neat Ban Houei Sal which graph 13 above, data on the first two months
corn is cut, the poppies continue to grow is believed capable of processing some 100 of 1971 indicate that the Tachilek trans-
until they too can be harvested. kilos of raw opium per day. The 14 refineries shipment and refining area may be receiving
8. Major producing areas include Phong in the Tachilek area apparently process the and processing sizably larger amounts of raw
Saly Province in the North, Houa Phan largest volume of raw opium in the region. opium than was the case in 1970. As for
(Samneua) Province in the Northeast, and in 1970, about 30 tons was converted by the changes in the type of refined narcotics pro-
the Plaine de Jarres area of Xiang Khoang Tachilek refineries into refined opium, mor- duced, the processing plants at Mae Haw in
Province in the East-central part of the phine base, and heroin. Thailand and Houei Tap in Laos now appear
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to be converting most of their opium into
No. 4 or 96 percent pure white heroin. Pre-
viously, these refineries tended to produce
refined opium, morphine base and No. 3
smoking heroin. An increased demand for
Np. 4 heroin also appears to be reflected in
the steady rise in Its price. For example, the
mid-April 1971 price in the Tachilek area for
a kilo of No. 4 heroin was reported to be
U.S. $1,780 as compared to U.S. $1,240 in
September 1970. Some of this increase may
also reflect a tight supply situation in the
area because of a shortage of chemicals used
In the processing of heroin. Rising prices for
opium and its derivatives can also be seen
in other areas of Southeast Asia.
20. The establishment of new refineries
since 1969 in the tri-border area, many with
a capability for producing 96 percent pure
heroin, appears to be due to the sudden
increase in demand by a large and relatively
affluent market in South Vietnam. A recent
report pertaining to the production of mor-
phine base in the Northern Shan States
would indicate a possible trend toward ver-
tical integrations-producing areas estab-
lishing their own refineries-in the produc-
tion of narcotics. Such a development would
significantly facilitate transportation and
distribution of refined narcotics to the mar-
ket places.
HON. BENJAMIN S. ROSENTHAL
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 2, 1971
Mr. RO$ENTHAL. Mr. Speaker, repre-
sentatives of U.S. transatlantic airlines
are going to Montreal later this month
to negotiate air fares-actually the word
should be to "fix" air fares, for the com-
peting carriers meet in private to decide
the rates they all will charge.
The prices are fixed by the Interna-
tional Air Transport Association. Frances
Cerra, Newsday's consumer writer, has
aptly described IATA as "a cartel which
operates without the participation of
consumers and above the laws of the
United States and any international or-
ganization."
The position of the, American carriers
is thrashed out by the airlines and the
Civil Aeronautics Board in secret ses-
sions. The people who must pay the fares
will be given no opportunity to partici-
pate or express their views.; after all,
they have little choice: only one or two
transatlantic airlines land in the United
States that are not IATA members.
The Aviation Consumer Action Project
has written to CAB Chairman Secor I).
Browne protesting the lack of public par-
ticipation in these proceedings. That let-
ter said, in part:
Such practices on the part of a federal
regulatory agency are hostile- to elementary
notions of due process and deprive citizens
of basic participatory rights assured in the
First Amendment,
I would like at this time to join them
~urging an end to these secret meetings
Ith the airlines in the course of fare
negotiations.
So that all my colleagues may be aware
of this SituatlonL I am inserting in the
RECORD at this point the Aviation Con-
sumer Action? Project's letter to CAB
Chairman Browne, and Miss Cerra's very
fine article on the setting of international
air fares:
AVIATION CONSUMER ACTION PROJECT,
5307
line you choose, the flight will cost you $555
round trip for a 17- to 28-day stay.
The same Is true for Rome or Cairo or any
other international destination except Lux-
Chairman, v . v ternational Air Transport Association, a car-
Civil Aeronautics Board, tel which operates without the participation
Washington, D.C. of consumers and above the laws of the U.S.
Ter of the International Air Transport the price of international travel increased
ence in International to ans at from eight to 12 per cent as a result of IATA
Association (IATA)
Montreal on June 28, 1971, to negotiate trans- agreements. Next moni h, the process of fix-
atlantic air fares. The Presidents of the ing meet the may 1972 prices will begin, but a new ele-
transatlantic IATA carriers will meet in New e be added: A new consumer group
York on May 27, 1971, to discuss the Montreal the IATA Ralph Nader promises to challenge
fares conference. And the Board, In accord- TA system i the courts.
mam u e has been
ance with its customary practice, will prob- Since its formation complicated 1929, IATA
ably meet with the representatives of the U.S. International in the politics. Many governments n i s in
carriers and discuss with them the various the world subsidize their their own arlines d
airlines and
views and positions which they will adopt in therefore the world
want be own protected air from
the IATA negotiations at Montreal. All these t it fares er ents
s
meetings will, as usual, be held in secret. therefore adopt mpetipetra the These gents as law
Members of the public and farepayers will and IATA agreements as law
not be given an opportunity to present their which d threaten to charge prosecute any fs. Gre Brit-
views and opinions in any of those meetings. din whhh ich s subsidi sidilower , fares. made
The Aviation Consumer Action Project subsidizes BOAC, actually m3
(ACAP), is writing to express its deep re- such a threat against the U.S, airlines in 1963
sentment and disapproval of the restrictive when the Civil Aeronautics Board opposed a
price-fixing practices of IATA, and the
Board's complicity In those practices.
ACAP is a, non-profit consumer organiza-
tion which has been founded for the purpose
of providing an independent voice for the
advocacy of consumer and environmental in-
terests In matters and proceedings before
the Board and other regulatory agencies.
Whatever may be the underlying reasons
for the Board's approval of U.S. carriers'
participation in IATA meetings, ACAP is of
the opinion that there cannot be any justi-
fication for the Board's secret meeting with
airline executives on the eve of the IATA
conference. The issues raised by such a meet-
Ing are rendered all the more serious when
the Board, on the exclusive basis of the air-
lines' in camera presentations, formulates
policies and opinions with respect to the ap-
propriate and permissable fare levels for
various international routes and traffic re-
gions. Such policies and opinions are com-
municated to the carriers by the Board in
the form of "directives." For all practical
purposes these directives are informal de-
cisions of the Board which tentatively set
forth the fares that the Board considers
reasonable and legal.
The Federal Aviation Act and the regula-
tory scheme outlined therein do not permit
the Board to make ex parte decisions after
hearing the airlines in closed sessions. Such
practices on the part of a federal regulatory
agency are hostile to elementary notions of
due process and deprive citizens of basic par-
ticipatory rights assured in the First Amend-
ment. They are wholly inconsistent with the
procedural principles embodied in the Ad-
ministrative Procedure Act.
ACAP urges the Board not to engage in
li
secret or private audiences with the ai
r
nes
"ego- ernment-owned airlines. That is exactly why
tiated in the IATA conference, except in open we say IATA should not exist. If. there were
proceedings of record, in which all interested competition in air fares I personally don't
and affected parties would have the right think it would 'be very destructive because
to attend and lawfully participate. We urge the efficient airlines would survive. But the
the Board to abstain from convening any alternative Is for the U.S. government to
secret meeting with the airlines whether directly represent the private airlines in
prior to or in the course of IATA fares nego- these conferences."
n
ti
a
ons.
Sincerely,
K. G. J. PILLAI,
REUBEN B. ROBERTSON III.
INTERNATIONAL FARES: ARE THEY SET FAIRLY?
(By Frances Cerra)
Unless you really dig bazouki music or
care about the color scheme of a plane's
interior, it doesn't pay to shop around for
the cheapest flight to Athens. Whatever air-
five per cent increase in air fares. Faced with
this threat and an international incident, the
CAB backed down.
Foreign governments also enforce the IATA
agreements by another simple measure: They
refuse to allow an airline that is not a mem-
ber of the cartel to land in their countries.
That is why Icelandic Airlines, the only non-
member of IATA, can land only in Luxem-
bourg. No other European country will give
it landing rights.
A spokesman for Pan American, whose
president, Najeeb E. Halaby, is on the execu-
tive committee of IATA, said that he would
not call IATA agreements "price fixing," but
"an area of cooperation."
"If there were not an area of cooperation,"
he said, "many airlines would not be able to
exist. The U.S. airlines in particular would
have a hard time because they are not subsi-
dized by the government. IATA makes for
fair play, and without it there would be
chaos."
Herb Aswall, the acting chief of the IATA
rates and fares section of the Civil Aeronau-
tics Board, which sets domestic air fare rates,
echoed Pan American's concern. "With 20
carriers flying the Atlantic alone," he said,
"to not have IATA would result in chaos be=
cause we would have to deal with each in-
dividual foreign government to establish
fares. And because the CAB has no authority
to regulate international fares, we might have
to accept an uneconomic fares, which would
drive an American carrier out of business."
Dr. K. G. J. Pillai, author of a book.on
IATA called "Air Net," and head of the new
Aviation Consumer Action Project, calls such
arguments illogical. "The private airlines are
now at a disadvantage in IATA because they
Pillai said that such negotiations would
not be unusual for the government which
now makes tariff and excise duty agreements
on thousands of products like oil and tex-
tiles, and even airmail rates. "I can't under-
stand why air fares should be different," he
said. Pillai said that if the government was
involved in fixing the international air fares,
the consumer would have a better chance of
influencing the negotiations. Right now, he
charges, the consumer has no chance of in-
fluencing IATA.
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Pillai is particularly critical of the role of
the CAB in the present system. The CAB has
to give the American carriers permission to
attend IATA meetings. Aswall, of the CAB,
said that this process involves the submis-
sion by the airlines to the CAB of their
thoughts on how next year's air fares should
be set. The CAB, according to Aswall, then
makes a public statement of what it believes
the proper international air fares should be.
The airlines are then supposed to be guided
by this statement when they attend the
IATA conferences.
Pillai said this process is "illegal." "There
are secret meetings between the CAB and
the senior vice presidents of the airlines,"
he charges, "which are completely illegal be-
cause the CAB does not have authority to
hear the arguments of airlines ex parts, that
is, without hearing the other side of the
case." These meetings, he said, will begin
next month, and Pillai plans to write to the
CAB asking that these conferences not be
held.
Later in the year, he said, the group will
challenge the IATA air fares in court. The
actual meetings of IATA are held in secret
and no one but the airline executives are
privy to how the fares are figured. Pillai
argues that the CAB could break the cartel
by simply not allowing the American car-
riers to attend the meetings. He says that
foreign governments would not really carry
out their threats of suits or of preventing an
American plane from landing because they
depend on American tourists for money.
More than half of all international tourists
are American.
Pillai believes that under the present sys-
tem "many millions of dollars have been
extracted from consumers in unnecessarily
high air fares because of the reluctance of
the government to get involved." Pillai said
his group was started by Nader but is sup-
ported exclusively by contributions from
consumers who want to help change the
IATA system. The address of the Aviation
Consumers Action Project, a nonprofit or-
ganization, is P.O. Box 19029, Washington,
D.C. 20036.
increase the request by an additional $3 roots level and improve communications
million. The following table shows the between older Americans and their
result of the administration's action: Government.
Original
fiscal
1972
Revised
fiscal
1972
Net
budget
budget
increase
Community programs---
$5,350
$9,000
$3,650
Planning and operation--
4,000
4,000
----------
Model projects -....------
4, 000
5,200
1,200
Foster grandparents-
7, 500
10, 500
3,000
RSVP.----------------
5,000
5,000
----------
Research and demon-
stration_____._ ____
1,800
2,800
1,000
Training---___ --- ---
1,850
3,000
1,150
It was a pleasure for me to vote for
the 10-percent increase in social security
as well as the 10-percent increase for
railroad retirees. I also support proposed
legislation which includes an additional
5-percent increase in social security and
ties social security increases to the cost-
of -living index.
The halting of inflationary pressures
is perhaps the most important need of
our retired citizens, and social security
must be made a more equitable and
effective instrument of income security
ELDER CITIZENS DESERVE OUR
GRATITUDE
HON. JACK F. KEMP
It has also come to my attention that
during the past year there has been great
concern among the senior citizen mem-
bership groups and the national organi-
zations engaged in programs affecting
the elderly about the gradual downgrad-
ing of the Administration on Aging
which began with the action of former
Secretary of Health, Education, and Wel-
fare Wilbur Cohen, who placed it under
the jurisdiction of the offices of Social
and Rehabilitation Service in HEW. The
result has awakened a deep seated fear
among interested parties that the Ad-
ministration on Aging will be unable to
fulfill the responsibilities assigned to it
by the Older American Act of 1965.
adjustment.
To give needed assistance to those
older Americans who work, I have intro-
duced legislation which would exempt
those persons over 65 from social security
tax-who are either forced to continue
working to supplement social security
benefits-or who do not wish to retire.
Assuring the dignity of old age is not
the granting of some special privilege.
It is sharing America's trillion-dollar
economy with the men and women who
helped create it.
ITALIAN NATIONAL DAY
CELEBRATED
It was in response to this concern that
Secretary Richardson on May 6 an-
nounced that he had invited Dr. Arthur
Flemming, newly appointed chairman of
the White House Conference on Aging, to
appoint a task force to reexamine the
future role and structure of the Ad-
ministration on Aging.
For the information of the Members
of the House, I include at this time Sec-
retary Richardson's statement announc-
ing this special task force:
STATEMENT BY SECRETARY RICHARDSON
I have asked Dr. Arthur Flemming, Chair-
man of the 1971 White House Conference on
the Aging, to establish a special task force
to review the organization and status of the
Administration on Aging.
The task force will be composed of quali-
fied and prominent private citizens and they
will give Chairman Flemming and me their
recommendations as to the role, function and
location of the Administration on Aging
within the Executive Branch as a whole.
:Dr. Flemming and I want the task force
to examine the different alternatives with-re-
spect to the future of the Administration on
Aging, giving special consideration to recom-
mendations which will issue from the various
State White House Conferences on Aging, and
giving particular weight to those recommen-
dations which emerge from the White House
Conference on Aging next November.
The Administration on Aging is a promi-
nent part, but only one part, of this Admin-
istration's comprehensive program to assist
older Americans; many Departments and
Agencies of the Federal Government have es-
sential roles.
Dr. Flemming and I look forward to a
thorough examination and to receiving ideas
which are directly representative of the views
of senior citizens themselves and their mem-
bership organizations.
The members of the task force will be an-
nounced by Chairman Flemming within a
few weeks.
Mr. Speaker, these actions will help
strengthen old-age programs at the grass
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Tuesday, June 1, 1971
Mr. KEMP. Mr. Speaker, the elder citi-
zens of our land have worked and sacri-
ficed to build America. They deserve to
be thanked, not ignored. The extra years
of life made possible by science must be
made secure, productive, and independ-?
ent. We cannot allow the older citizens of
our society to live out their days in pov-
erty, loneliness, and despair.
The Bureau of the Budget in its appro-
priations request for the Administration
on Aging in fiscal year 1972 cut $7 mil-
lion from the amount of appropriations
voted in fiscal year 1971. This would have
forced serious cutbacks in the commu-
nity programs and other projects. It is
estimated that, if these cuts had been
maintained, more than 125 senior cen-
ters in different sections of the country
would have had to be closed. When all
the facts came to light, President Nixon
and Secretary Richardson of the Depart-
ment of Health, Education, and Welfare
make a determination to ask for the res-
toration of the appropriation request to
the fiscal year 1971 level and, indeed, to
HON. PETER W. RODINO, JR.
OF NEW JERSEY
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 2, 1971
Mr. RODINO. Mr. Speaker, I wish to
join in marking Italian National Day-
because of the bonds and strong alliance
between Italy and the United States-
because of the incalculable contributions
by Italy to Western civilization and not
least of all because of my affection for
the homeland of my father.
- In this occasion I pay tribute to the
Italian nation and her people and I ex-
press my congratulations and fond senti-
ments to the Republic of Italy through a
trusted friend of the United States and
eloquent Ambassador of Italy, His Ex-
cellency Egidio Ortona.
Italians are perhaps most noted for
their artistic and esthetic sensitivity.
The genius of da Vinci, Raphael, Mich-
aelangelo, Bellini, Duccio is immortal.
The creative and innovative capacity of
the Italian people seems limitless. But
their contributions extend far beyond the
purely artistic. Men like da Vinci made
two fold contributions in the arts and
in the sciences. Other accomplished
Italians like Livy and Cicero wrote signi-
ficant historical and philosophical works;
the importance of Roman law cannot be
overestimated. Indeed, Italians have
made their mark in every field of en-
deavor. Proof of Italy's rich culture is the
number of tourists who flock to her shores
to share her history and enjoy the warm
receptive nature of her people.
Again, I extend my warmest wishes to
the Italian people on Italian National
Day and express my confidence in the
continued friendship of our two peoples.
Approved For.Release 2000/09/08 : CIA-RDP73B00296R000400080003-7