CONGRESSIONAL RECORD - SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00818R000100050008-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 1, 2005
• Sequence Number: 8
• Publication Date: September 13, 1972
• Content Type: OPEN

Approved For Release 2005/08/03 :CIA-RDP81-008188000100050008-1
CONGRESSIONAL RECORD-SENATE September Y3, z9~
Geed $20,000,000. Such additional purchases
or guarantees which the Administration
makes under .this paragraph shall contain
conditions to insure appropriate maintenance
by the company receiving such assistance of
the described ratio during the period in
which debentures under this paragraph are
outstanding."
(f) Title III is further amended by add-
ing thereto a new part B as follows:
"PART B. MINORITY ENTERPRISE SMALL BUSI-
NESS INVESTMENT COMPANIES
"SEC. 317. To encourage the formation
and growth of MESBIC's the Administration
is authorized to purchase the securities of
any such MESBIC, subject to the following
conditions:
"(a) Shares of nonvoting stock (or other
securities having similiar characteristics),
provided-
. "(1) dividends are preferred and cumula-
tive to the extent of 3 per centum of par
value per annum;
"(2) on liquidation or redemption, the
Administration is entitled to the preferred
payment of the par value of such securities
and may require the preferred paymen*, of
the difference between dividends paid and
cumulative dividends payable at a rate
equal to the interest rate determined pursu-
ant to section 303(b) for debentures with a
term of fifteen years, without interest on
such difference;
"(3) the purchase price shall be par value
and, in any one sale, $60,000 or more;
"(4) the amount of such securities pus-
-chased and outstanding- at any one time
shall not exceed (A) from a MESBIC having
combined private paid-in capital. and paid-
in surplus ("capital") , of less than ffi300,000
and licensed on or before October 13, 197.1,
the amount of capital invested after such
date, nor (B) from any MESBIC having capi-
tal of $300,000 or more but less than $500,000,
thA amount of its capital in excess of ffi300,-
000, nor (C) from any MESBIC having capi-
tal of $500,000 or more, the amount of its
capital.
"(b) Debentures subordinated to any other
debts and obligations of a MESBIC (other
than securities purchased under subsection
(a) of this section), provided- `
"(1) such debentures are issued for a term
of not to exceed fifteen years;
"(2) the interest rate is determined pur-
suant to sections 303 (b) and 318;
"(3) the amount of debentures purchased
and outstanding at any one' time from a
MESBIC having capital of less than $500,000
-shall not exceed 200 per centum of its capital
less the amount of preferred securities out-
standing under subsection (a) of this sec-
tion, nor, from a MESBIC having capital of
$500,000 or more,, 300 per centum of its capl-
tai less the amount of such preferred secu-
rities.-
"(c) Debentures purchased and outstand-
ing pursuant to section 303 (b) or this section
may be retired simultaneously with the is-
suance of preferred securities to meet the
requirements of subsection (b) (3) of this
section.
"(d) The Administration may require, as
a condition of the purchase of any securities
from a MESBIC in excess of 200 per centum
of its capital, that t'he MESBIC achieve and
thereafter maintain a ratio of loans to ven-
ture capital (as defined in section 303) deter-
mined by the Administration to be reason-
able and appropriate.
"SEC. 318. Notwithstading section 303 (b)
the effective rate of ixterest after October 13,
1971, during the first flue years thereafter of
the term of any debenture purchased by the
Administration from a MESBIC shall be the
greater of 3 per centum or 3 percentage
points below the interest rate determined
pursuant to section 303(b).The Adxhinistra-
tion is authorized to apply interest paid to it
by such MESBIC for the period from October
13, 1971, to the effective date of this sec-
tion, witlxout interest thereon, to interest
payable after such effective date. No MESBIC
which has received the benefit of tlxis sec-
tion may make a distribution (other than
to the Administration) unless it has first paid
to the Administration an amount equal to
the difference between the rate of interest
payable to the Administration pursuant to
this section, and the rate of interest which
would have been payable pursuant to section
303(b).
"SEC. 319. The provisions of part A shall
apply in the administration of this part:
Provided, however, That the provision of
section 303 (b) shall not be applicable to
this part except as specifically provided in
this part."
SEC. 2. Section 18 of the Investment Com-
pany Act of 1940, as amended. (lb U.S.C. 80a-
18) is further amended by amending sub-
section (k) to read as follows:
"(k) The provisions of subparagraphs (A)
and (B) of paragraph (1) of this section
shall not apply to investment companies op-
erating under the Small Business Invest-
ment Act of 1958, and the provisions of
paragraph (2) shall not apply to such com-
panies so long as such class of senior security
shall be privately held by the Small Business
Administration and not inte~xded to be pub-
licly distributed.". ,
Mr. TOWER. Mr. President, I move
to reconsider the vote by which the bill
was passed.
Mr. GAMBRELL. Mr. President, I
move to lay that motion on the table.
The motion to lay on the table was
agreed to.
Mr. GAMBRELL. Mr. President, I ask
unanimous consent that the Secretary of
the Senate be authorized to make tech-
nical and clerical corrections in the en-
grossment of the Senate amendments to
S. 3337 and that the bill be printed as
passed by the Senate.
The PRESIDING OFFICER. Without
objection, it is so ordered.
Mr. MANSFIELD. Mr. President, I ask
unanimous consent that the Senate turn
to the consideration of Calendar No. 836,
H.R. 6503.-
The PRESIDING OFFICER. The bill
will be stated by title.
The assistant legislative clerk read the
bill by title, as follows: A bill (H.R. 6503)
for the relief of Capt. Claire E. Brou.
The PRESIDING OFFICER. Is there
objection to the request of the Senator
from Montana?
There being no objection, the Senate
proceeded to consider the bill.
Mr. FANNIN. Mr. President, I am
happy to support passage of H,R. 6503,
which I believe is a just resolution of the
case of Capt. Claire E. Brou. This is an
unusual case. Ordinarily the disability
retirement system for military personnel
provides a sufficient resolution for claims
of this nature. It is my hope that in the
future by and large most cases of inju-
ries arising in the course of military serv-
ice can be handled within the adminis-
trative structure without the necessity of
recourse to legislative relief by private
bill.
Mr. MANSFIELD. Mr. President, I ask
unanimous consent that certain perti-
nent material out of the report and on
the basis of communications with the
Department of Defense bt' inserted in
the RECORD.
There being no abjection, the material
was ordered to be printed in the RECORD,
as follows:
AFFIDAVIT
I, Lieutenant Colonel Jorge R. Gutierrez,
SSAN, 139-36-177, MC, Assistant Chief, De-
partment Radiology, Triples General Hos-
pital, Hawaii, do hereby make this statement
and atRdavit regarding the physical disabil-
ity suffered by Captain Claire E. Brou
(USAF, Retired) following radiological tests
performed on 17 April 1958 apt Walter Reed
Army Medical Center, Washington, D.C.
I entered medical school in Guba in 1951
where such training involved a seven year
program. I completed medical school at the
University of Valencia in Spain in 1958. In
September 1,960 I completed the requirements
for and receivedl my Educational Gouncll for
Foreign Medical Graduates Certificate, and
commenced my internship in January of 1961
at Our Lady of Lourdes Hospital, Camden,
New Jersey. In January of 1962 I began my
residency in radiology at the same hospi-.
tai, I.remained at Our Lady of Lourdes until
entering on active duty with the Army at
Fort Campbell, Kentucky on July 3, '1963.
At Fort Campbell I was assigned to the ra-
diological service, where I served until De-
cember of 1965. In December 1965 I was
transferred to Fitzsimmoits General Hospital
at Denver,- Colorado, where I completed my
residency in radiology on August 31, 1987. I
then came to Walter Reed as the Fellow in
Angiography and Special Procedures, a ra-
diological sub-specialty.
I first saw Captain Claire E. Brou as a
patient during her admission to Walter Reed
General Hospital during December of 1967.
This was prior to her receiving any speci&1
radiological examination. During tliat ad-
mission the patient underwent a right in-
fex7or patrescal sinogram performed by Dr.
Harrall, the staff physician in charge of such
procedures. During this procedure I acted as
first assistant to Dr. Harrall. The patient
suffered no complication whatsoever fallow-
ing this procedure which confirmed a diag-
nosis of a venous va-six posterior to the rig~ht
eye. Some weeks later I performed an ider2-
tical procedure on another patient, whose
name I recall as McCarthy, for an identical
condition posterior to the left eye. I per-
formed this procedure without Dr. Harrall's
presence, with the normal attendance of a
resident s,nd the appropriate technicians.
During April of 1968 the patient was re-
admitted specifically for the performance of
a left inferior petrosail sinogram: This pro-
cedure was essential to definitive therapy .
and was requested by the Neurosurgical De-
partment at Walter Reed. I saw the patient
prior to the performance of these procedures
for pre-operative consultation, explained to
her that the procedure would be identical to
the one performed on her in December 1967
and that it had been requested by Colonel
Kempe, Chief of Neurosurgery.
The sinogram was performed by me on
April 17, 1968. I was assisted by the Chief
Radiological technician, Clarence Lee', a res- _
ident in Radiology, Dr. Frank Yerussi, by
a corpsman and a second technician. Clar-
ence Lee Ls a seasoned technician and has
been- with Special Procedures since- the
formation of that section in 1967. Dr. Yarussi
was a second or third year radiology resi-
dent. At the time of the procedure the pati-
ent had received the normal pre-operative
medication, 30 mg of morphine and 50 mg
of phenergan.
To properly accomplish the radiological
studies requested, I catherized the lest in-
ternal juglar vein and in]ected 1 6c of con-
trast medium (Ranagrafin-60), a test dose.
After the appropriate lapse of time, I then
advanced the Gatherer raider fiuoroacapic
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ye+.ltember 13, 1912 CONGRESSIONAL RECORD --SE1 iTE
. r. JAVITS. Mr. President, will the
3v1
Senator yield before the Senator from
Georgia and the Senator from Texas
1iply?
Mr. BUCKLEY. I yield.
Ar. JAVITS. I am a cosponsor of the
milt, and I join in everything the Senator
tid_ I do not want to interrupt the flow
a;i debate, but I would like to add to the
e the chairman to give consideration
hearings early in the next session of
press, and being a very broadminded
cooperative man, and one with whom
l.lcrt hearings.
ir. BUCKLEY. I thank the Senator
or his encouragement.
Mr. GAMBRELL. Mr. President, I have
1l0t consulted on this subject with the
chairman, but I understand the Sena-
igr's bill was introduced after the com-
mittee report was filed on this bill, so it
cvsat. not possible to consider it in connec-
, ion with this matter.
,fr. JAVITS. Mr. President, might we
,r .k. the Small Business Subcommittee If
i:lhev would be able to develop, if they do
not have it already, in connection with
t the hoped for hearings on Senator BucK-
.r:y's bill, anything on the utilization of
hat section of the Small Business Act
tvih'ich allows, notwithstanding antitrust
laws, small business to combine for pur-
the Senator said. personally my instinct
i that we have moved away from credit
inaccessibility, and the main scourge
1 small business, to managerial inacces-
:Ability, and the effort to allow them to
utilize research and development was
,:rare of the main things we thought we
t ttl done in this area.
I think it would be helpful to Senator
BUCKLEY's bill if we had some idea as
t n how that had gone-my recollection is
that it had not gone too well-and what
*aa ere the reasons it had not gone well,
tact whether we could help it with this
bill or what we might include in the bill.
I would like to recall to the committee
.s.u experience, with which quite a few
c,,1lmmittee members are familiar, and
o:-pecially the Senator from Alabama
Mr. SPARKMAN), and that is the organi-
.;r,tlion of a company now known around
the world as the Adela concept, of which
) had the honor to be the author, which
combines capital, very small leverage
(api.tal, with technical assistance, and
makes a very admirable package. We
know of its tremendous success in Latin
America and now it is being tried in
Africa and Asia.
Mr. TOWER. Mr. President, the Smal
Business Administration for the last
or 3 years, and it started in the admini
tration of Hilary Sandoval, who wa
the Small Business Administrator wh=
preceded Mr. Kleppe. They started the':
to develop the facility within the :SBA t
provide technical and managerial assist
ance, the idea being not just to give then
the money and say, "Do the best 3 on cai
with it," but to follow itup with ,echnl
cal and managerial assistance to he ex
tent that they can use the money wisel
and well.
I am not in a position to comment ow
the success of the agency's efforts at tld
time, but I know they have been tryin
to do that administratively and that l^
has been a principal objectives with theii.
Certainly, I would say the Senator l:
absolutely correct in what, he said aboui
the inaccessibility of capital. That t;s
not now the problem, because it is at
cessible, but technical and manageris
assistance is not always available. How
ever, under Mr. Kleppe as Chairman e:
the Small Business Administration, it 1:
trying to correct this deficiency aad try
lug to move toward managerial ant
technical assistance.
Mr. DAVITS` Perhaps my cclleag t
from New York (Mr. BUCKLEY) and :r
can consult with Mr. Kleppe, with th,
anticipation of the hoped for hearin*
on this bill, and ascertain what is tb,
present state of affairs on the bill, if thi
committee would not have any ob.?ectior
and then we could have the report fe
submission to the committee.
Mr. TOWER. I would say the corn
mittee would have no objection, be
cause the committee has a vital interesh
in what happens to these funds on+tr
they are loaned. We do not wan> to A---
nance failures, I am convinced of tb
Administrator's own desires in the mat
ter, and I think he is a very consci intiob-
man who wants to do the best job pot
sible for making sure that when we fungi'
these minority enterprises we also shoar
them how, if necessary. Therefore,
think he would probably welcome .such a;;
inquiry, and I certainly see no reason wb
the committee would object to it..
Mr. BUCKLEY. I thank my distifl
guished colleague for commenting.
think the Adela concept is one which of
fers much opportunity to such enter
prises. It has been successful in Sout
America.
With the assurances I have receive,,
from the Senator from Texas and th.?
`Senator from Georgia, qualified thoug'
they had to be, I am satisfied that I ca:
hope for early consideration of mny bi'
by the committee when the new Congret
convenes. I am also certain that the dia
tinguished" chairman and the distir
guished minority member will be on hallw,
to conduct those hearings.
Mr. TOWER. I thank my colleague fe
expressing confidence in the ret lectio
of the chairman and myself. I want to se
that should I return-and I have ever;
hope and expectation of doing so-I wi'
certainly press for early consideration a
his bill.
The PRESIDING OFFICER. The quer
tion is on agreeing to the amendment.
The amendment was agreed to.
S 14801
The PRESIDING OFFICER. The bill is
open to further amendment.
If there be no further amendment to
be proposed, the question is on the en-
grossmerht of the amendments and the
third reading of the bif I.
The amendments were ordered to be
engrossed, and the bill to be read a third
time.
The bill (S. 3337) was read the third
time, and passed, as follows :
S. 3337
An act to amend the Small Business Invest-
ment Act of 1958, and for other purposes
Be it enacted by the Senate and House of
Representatives of the IFfit5d ` States of
America in Congress a:rsemb5.'d, That this
Act may be cited as the 'Minority Enterprise
Small Business Investment Act of 1972".
Svc. 2. The Small ]business Investment
Act of 1958, as amended. Is further amended
as follows:
(a) Section 1.03 1w amended
(1) by striking "and" from paragraph 6);
(2) by striking the period at the endof
paragraph (7) and inserting in lieu thereof
and"; and
(3) by adding the following new paragraph:
"(8) the term 'minority enterprise small
business investment company', herinafter
called MESBIC, means ;:c small. business in-
vestment company, the investment policy of
which is that its investments will be made
solely in small business concerns which will
contribute to a well-balanced national econ-
omy by facilitating ownership in such con-
cerns by persons whose participation in the
free enterprise system is hampered be:Kruse
of social or economic disadvantages."
(b) Title III of the Small Business Invest-
ment Act of 1958, as :.amended, is furher
amended by designating sections 301 through
thereof as "PART 4.--Sa2ALL BUSsm ss5
316
INVESTMsNT COMPANIES'".
(c) Section 301 of the Small Business In-
vestment Act of 1958 is amended by adding
t:he following new subsection:
"(d) Notwithstanding any other provision
of this Act, a MESBIC may be Irganized and
chartered under State nonprofit corporation
.tatutes; and may be licensed by the Admin-
istration to operate under the provisions of
Ibis Act.".
(d) Section 302 of the Smal'. Business In-
vestment Act of 1958 Is amended by adding
the following new subsection:
"(d) Notwithstanding subsection tb. (2)
of this section, or any other provision of law,
shares of stock or other equity or debt securi-
t.ies issued by a MESBI( shall be eligible for
purchase by banks and other financial in-
stitutions, subject to the 5 per centum :lim-
itation of subsection (b) (I) of this section.
MESBIC's shall not be deemed ineligible for
any assistance under tb.is Act because of such
purchases."
(e) Section. 303 of the Smai:'. Business In-
vestment Act of 1958 is anhend.ed--
(1) by striking the Cgure "$7,500,000" in
the last sentence of paragraph (1) of suibsec-
tion (b) and inserting in lieu thereof the
figure " $15,000,000", and
(2) by amending paragraph (2) of sub-
section (b) to read as follows:
"(2) The total amount of debentures
which may be purchased or guaranteed and
outstanding at any onetime from a company
which has investments or legally binding
commitments of 65 percent or more of its
total funds available for investment In small
business concerns invested or committed in
venture capital, shall not exceed (A) from a
company having combined private pair.'-in
capital and paid-in surplus ('Capital') of
less than $500,000, 200 per centum of its cap-
ital, and (B) from a company :caving capital
of $500,000 or more, 300 per centum of its
capital. In no event shall the debentures of
any. such company purchased pr guaranteed
and outstanding under this paragraph ex-
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 The assistant legislative clerk pro-
ceeded to state the amendment.
Mr. GAMBRELL. Mr. President, I ask
unanimous consent that further reading
of the amendment be dispensed with, as
I plan to discuss it in the statement
which I am about to make.
The PRESIDING OFFICER. Without
objection, it is so ordered.
The amendment is as follows:
1. On page 3, between lines 3 and 4, add
the following subsection: (e) Section 303 of
the Small Business Investment Act of 1958
is amended-
(1) by striking the figure "$7,500,000" in
the last sentence of paragraph (1) of sub-
section (b) and inserting in lieu thereof the
figure "$15,000,000", and
(2) by amending paragraph (2) of sub-
section (b) to read as follows:
" (2) The total amount of debentures
which may be purchased or guaranteed and
outstanding at any one time from a com-
pany which has investments or legally bind-
ing commitments of 65 percent or more of its
total funds available for investment in small
business concerns invested or committed in
venture capital, shall not exceed (A) from
a company having combined private paid-in
capital and paid-in surplus ('Capital') of
less than $500,000, 200 per centum of its
Capital, and (B) from a company having
Capital of $500,000 or more, 300 per centum
of its Capital. In no event shall the deben-
tures of any such company purchased or
guaranteed and outstanding under this
paragraph exceed $20,000,000. Such addi-
tional purchases or guarantees which the
Administration makes under this paragraph
shall contain conditions to insure appropri-
ate maintenance by the company receiving
such assistance of the described ratio dur-
ing the period in which debentures under
this paragraph are outstanding."
On page 3, line 4, strike out "(e) " and
insert "(f)
Mr. GAMBRELL. Mr. President, this
amendment is offered on behalf of the
chairman of the committee, the Senator
from Alabama (Mr. SPARKMAN).
The amendment is a simple one which
will place regular small business invest-
ment companies on a more equal footing
with minority enterprise SBIC's. Under
S. 3337, MESBIC's would be entitled to
draw down venture capital leverage
when the MESBIC has private capital of
$500,000 or more. Under present law, all
SBIC's must have at least $1 million in
private capital before they are able to
achieve this additional leverage. The first
part of my amendment would equalize
the treatment for all segments of the
SBIC industry.
The second feature of my amendment
would increase the total leverage avail-
able for any one SBIC. Under S. 3337,
MESBIC's could qualify for.unlimited
amounts of leverage. Present law limits
any SBIC to a ceiling of $10 million, My
amendment would double this amount to
$20 million if an SBIC qualifies as a ven-
ture capital specialist, or $15 million if
it does not.
Mr. President, I believe these two
amendments are fair and equitable and
I believe they will give more incentive
for SBIC's to invest ever greater num-
bers of dollars in our new and growing
business enterprises.
Mr. TOWER. Mr. President, on behalf
of the distinguished Senator from New
Hampshire (Mr. McINTYRE), who is the
chairman of the subcommittee with
whom I have discussed this matter, and
on behalf of myself and the ranking
minority member. of the full committee,
we are fully prepared to accept the
amendment offered by the distinguished
Senator from Georgia on behalf of the
distinguished chairman of the commit-
tee (Mr. SPARKMAN), who is necessarily
absent today.
I would urge the Senate to accept the
amendment that has been offered by the
Senator from Georgia.
Mr. JAVITS. Mr. President--
The PRESIDING OFFICER. The Sen-
ator from New York is recognized.
Mr. JAVITS. Mr. President, I would
like to ask a few questions about this
matter. I am the ranking member of the
Small Business Committee of the Senate
and have served on the Banking and
Currency Committee so I have some con-
siderable interest in the situation which
we are meeting today. Is it not a fact
that the SBIC's, both in total number
and individual capital are very much
larger than the MESBIC's?
Mr. GAMBRELL. I think there is no
doubt about that. The Senator is cor-
rect.
Mr. JAVITS. Mr. President, whereas
we speak in terms of larger MESBIC's, I
gather from our new minority counsel on
the committee, Mr. Adams, in terms of a
million dollars, we speak in terms of 10
times that for the SBIC. They have $10
million. The Senator stated that himself.
Mr. GAMBRELL. The Senator is
correct.
Mr. JAVITS. And on the average, the
SBIC is very considerably larger than an
MESBIC. Is that correct?
Mr. GAMBRELL. I think that is typi-
cally true. The Senator is correct.
Mr. JAVITS. Mr. President, I gather
that a case has been made out for the
MESBIC's to aid minority enterprise by
increasing the leverage. I gather that the
leverage should be increased and that a
good case has been made for it.
Mr. President, I would like to ask the
Senator a question so as to spread the
information on the RECORD, because I be-
lieve the SBIC's ought to be encouraged.
I think it is very desirable to do so. I was
on the Committee on Banking, Housing
and Urban Affairs, I believe, when it first
started. I believe in the stimulus of small
business enterprises. I do not wish to be
construed as opposing the amendment.
However, I think it is appropriate to have
an explanation an the RECORD where
there is a case for the MESBIC's, and
apparently the case has been proved.
What about the case for the SBIC's
and their adequate backing of the prop-
osition which the Senate is being asked
to approve?
Mr. GAMBRELL. I think the question
the Senator is asking is one that I had
not anticipated being called upon to an-
swer, but I think the basic thrust of the
legislation is to increase the amount of
leverage available to SBIC, and thereby
to increase the amount of leverage avail-
able to MESBIC's at the same time. The
entire bill, aside from this amendment, is
intended to encourage the extension of
more and more credit into the MESBIC
area. It may be that some will find the
thrust not sufficiently strong in this area.
Certainly that would be worthy of fur-
ther consideration, but the bill has the
intention I have stated.
Mr. TOWER. Mr. President, will the
Senator yield?
Mr. GAMBRELL. I yield.
Mr. TOWER. If I may, I wish to make
a little legislative history. The whole in-
tent is to encourage minority enterprise.
That is made adequately clear by the re-
port and by what we say here. There
is a desire not to statutorily give an ad-
vantage competitively to perhaps a non-
minority enterprise small busines; that
may be equally meritorious. We do not
want to statutorily discriminate.
Mr. JAVITS. Against the SBIC's?
Mr. TOWER. Yes; against the regular
SBIC's.
Mr. JAVITS. I have great respect for
the chairman of the committee and its
ranking minority member. I do not op-
pose the amendment, but I hope that we
can have and that there may be provided
for the RECORD within the next few days
a factual justification for the purpose, so
that it may be a factor in conference. I
understand this particular amendment
will be in conference and there will,be
another opportunity for both Senators
and Members of the House to give it
consideration.
I think all of us would be helped if we
had a detailed justification printed in
the RECORD.
Mr. TOWER. I think I can give the
Senator that assurance as far as the con-
ference is concerned, and I can give as-
surance that by midweek there will be
full justification in the RECORD.
Mr. BUCKLEY. Mr. President, I had
contemplated introducing as an amend-
ment to the bill a proposal I introduced 2
months ago which was designed to
broaden our approach to provide minor-
ity enterprise with an opportunity to be-
come financed. My basic approach would
be to apply to the field of equity invest-
ment the kind of guarantee which the
current legislation and other legislation
applies to loans to such enterprises.
On consideration I decided not to in-
troduce my concept as an amendment be-
cause I feel it should go through the nor-
mal procedure, the normal hearings, and
have expertise applied by the committee,
before it is offered to the Senate as a
whole.
One of the defects as I see it, and at
one time I was in the venture capital
field, with respect to minority enterprise
is to facilitate the borrowing of money,
yet when an enterprise borrows money it
incurs a cost which can throttle it. Also,
bankers are not in the business of taking
risks, yet a new enterprise is a risk-tak-
ing business. Finally, bankers are not in
the position of offering a galaxy of advice
of the sort minority enterprisees want
most. People in equity financing are able
to provide that kind of aid.
I would like to ask the Senator from
Texas, as the ranking minority member,
and also the distinguished Senator from
Georgia, who is acting on behalf of the
chairman, if I could get some kind of en-
couragement that hearings could be held
at an early date in the next session of
Congress.
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: ,,,saber 13, 197 CONGRESSIONAL RECORD - SEN``l E
,ved the benefit of this section may make
pst ,il)ution (other than to the Adminis-
rauionp unless it has first paid to the Ad-
rninistration an amount equal to the dif-
oence between the rate of interest pay-
tote to the Administration pursuant to this
action. and the rate of interest which
ould have been payable pursuant to sec-
E+_.it 3031b).
ii?:c. 319. The provisions of part A shall
Pp, N., in the administration of this part:
t'tovoded, however, That the provisions of
section 303(b) shall not be applicable to this
part except as specifically provided in this
pawl.
-b c, 320. Section 18 of the Investment
iinipany Act of 1940, as amended (15 U.S.C.
30a-18) . is further amended by amending
,iubsecti.on (k) to read as follows:
" (k) The provisions of subparagraphs
A) and (B) of paragraph (1) of this sec-
,ion shall not apply to investment com-
rianies operating under the Small Business
investment Act of 1958, and the provisions
'f paragraph (2) shall not apply to such
ompanies so long as such class of senior
ecurity shall be privately held by the Small
tininess Administration and not intended
Al .be publicly distributed.".
Mr. TOWER. Mr. President, I suggest
the absence of a quorum.
The PRESIDING OFFICER. The clerk
will call the roll.
The assistant legislative clerk pro-
eceded to call the roll.
Mr. TOWER. Mr. President, I ask
ananinlous consent that the order for the
quorum call be rescinded.
The PRESIDING OFFICER (Mr.
lucxr,xv). Without objection, it is so
ordered.
Mr. TOWER. Mr. President, on August
1, the Committee on Banking, Housing
and Urban Affairs reported without ob-
jection the administration's bill, S. 3337,
which I was pleased to sponsor, to en-
large and improve the assistance pro-
,,rani of the Small Business Administra-
(?iorl to minority enterprise formation
and operation. The need has long been
recognized in our country for the forma-
tion of capital in disadvantaged minor-
ity communities, if the harsh cycle of
_)overty is to be broken and its victims
are to have a chance to work their ways
to decent standards of living and to the
dignity that accompanies self-reliance
and self-support. The Minority Enter-
prise Small Business Investment Act is
one of the means recommended by the
President to the Congress to facilitate
capital formation in the minority com-
inunity generally, and I think that this
self-help approach to curing poverty and
unemployment in the minority commu-
nity is very deserving of support by the
Congress.
The bill essentially provides statutorily
that minority enterprise small business
investment companies--MESBIC's-may
be organized to receive SBA assist-
ance and to channel financial and man-
agement assistance to minority enter-
prises. The bill:
First, specifies that MESBIC's may be
organized under either business or non-
-profit corporation statutes of the sev-
eral States, in order to permit the or-
ganizers of the MESBIC the option of
tapping the large assistance potential of
charitable organizations, churches, foun-
dations, and the like;
Second, authorizes SBA to acquire pre-
ferred stock in a MESBIC, within certain
limits, in order to ease the debt and in-
terest burden of the MESBIC so that it
can raise more private capital;
Third, reduces the level of private cap-
ital required to qualify for third-dollar
leverage from SBA, from $1 million to
$500,000, so that more MESBIC's can be
formed which can utilize favorable lever-
age provisions available to SBIC's;
Fourth, provides an interest subsidy
for borrowed government funds during
the first 5 years of the loan; and
Fifth, permits federally regulated
banks to own MESBIC's wholly or in
part, within specified limits, in order to
bring in the direct support of the bank-
ing community to this vital program.
Mr. President, this bill offers the
minority individual who is trying to get
into business an opportunity to get some
of the capital and management assist-
ance that he needs to get a successful
operation going. This legislation does not
propose to guarantee anybody a mini-
mum income, or to give anybody some-
thing for nothing. This bill provides for
seed money and assistance to be chan-
neled into the potentially profitable
minority business enterprise in orde.^ to
get the business going. The ultimate goal
is the development of a large number of
self-sustaining, self-supporting minority
business firms, which are owned by the
minority communities, run by them, and
which return the benefits of profits, jobs,
and income to the presently disadvan-
taged minority communities. The prin-
cipal ingredient of this whole capital
formation process will be the particular
individuals in the minority community
with the ambition and the talent to run
their own businesses-in a word, enter-
preneurs. We merely seek here to provide
a vehicle for the direction of supportive
financial and management assistance to
get these entrepreneurs into successful
operation.
The ultimate beneficiaries of the proc-
ess of successful capital formation in
minority communities will be not only
members of those communities them-
selves, but also all taxpayers and citizens
of this country, who are throwing a
great deal of good tax money down the
seemingly insatiable sink-hole of wel-
fare and other nonproduction oriented
Federal programs. The MESBIC pro-
gram is designed to help build a :;elf-
supporting capital structure under the
minority community, which is the only
long-term solution for the achievement
of permanently decent living standards
for this community, and will help pro-
vide them the dignity of self-support
that everyone should have.
The SBA has been operating an ad-
ministrative program for MESBIC's for
some time now, under the auspices of
the existing Small Business Investment
Act. I ask unanimous consent that a
copy of the testimony before our com-
mittee of Mr. Walter W. Durham, presi-
dent of the MESBIC Financial Corp. of
Dallas, be printed in the RECORD at this
point, so that the RECORD will show an
example of the progress of the program
to date, even without the expanded as-
;,=tance of the present legislation. It
ra zems clear that with the expanded as-
Lance of this legislation, we will see a
:, cbstantial increase in the number of
a inority businesses created and in the
+sccessfulness of these businesses.
I therefore urge the passage of this
1?gislation.
Mr. President. I urge the Senate to
-? ve its overwhelming support to this
ensure that is designed to get the
1 lacks, the Mexican Americans, and
.{.her disadvantaged minority groups in
is country into the mainstream of the
I -ee enterprise system.
I think the record of this ad:ministra-
on is good with respect to this matter.
A dminilstratively they have been doing
hat we in the Congress do legislatively.
I think that this should be a permanent
program and should be approved by the
C ongress of the United States. ( urge its
:]option.
The PRESIDING OFFICER. The ques-
t ar on is on agreeing to the committee
xiendment (putting the question).
The amendment was agreed to.
The PRESIDING OFFICER. The bill
open to further amendment.
Mr. GAMBRELL. Mr. President, the
x:.11 presently before the Senate, the
Minority Enterprise Small Business In-
u,vstment Act of 1972, was reported out
committee unanimously.
As the Senator from Texas has an-
d ounced, the administration has given
xis legislation its support. In the ab-
~.~i1ce of the chairman of the cvminittee
a.id the other members on the Democra-
v. c side, I have been asked to handle this
s.: Ratter.
This bill creates a new program by
c.iablishing the creation of minority
,nail business investment companies,
WESBIC's and authorizes the Small
rusiness Administration to provide fi-
i uncial assistance for the purpose of pro-
r tiling equity capital and long-term loan
` rods to small business concerns owned
A: y disadvantaged persons.
The bill, provides that MESBIC's can
i formed either under the business or
i; onprofit corporation statutes of the
c crious States.
This bill, S. 3337: First. authorizes the
c mall Business Administration to pur-
c::iased preferred stock within certain
,;:.nits; second, reduces private capital re-
e, airements for MESBIC's from $1 mil-
i on to $500,000 to qualify for third-dol-
i;cr Government leverage; third, pro-
ides interest subsidies for the first 5
gars of a MESBIC loan; and fourth.
w,termits federally regulated banks to own
^.iESBIC's within specified limits.
Mr. President, the purpose of this legis-
+aion is to provide minority business
i ith a source of investment capital.
Economic opportunity must be created
i, assure minority groups and the disad-
antaged a greater chance to participate
r;irectly in our free enterprise system.
lid this is the intent of this legislation.
Mr. President, at this time ( send to
tte desk an amendment to S. 3337 which
would augment and improve the provi-,
ons of the bill.
The PRESIDING OFFICER.The Clerk
ill report the amendment.
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September 1, 1972 CONGRESSIONAL RECORD --SENATE
Hampshire (Mr. MCINTYRE), the Senator
from Alabama (Mr. SPARKMAN), and the
Senator from California (Mr. TuNNEY)
are necessarily absent.
I further announce that the Senator
from Wyoming (Mr. MCGEE) is absent
on official business.
I also announce that the Senator from
California (Mr. TUNNEY) is absent be-
cause of illness.
Mr. SCOTT. I announce that the Sen-
ator from Colorado (Mr. ALLOTT), the
Senator from Tennessee (Mr. BAKER),
the Senator from Michigan (Mr. GRIF-
FIN), and the Senator from Ohio (Mr.
SAXBE) are necessarily absent.
I also announce that the Senator from
South Dakota (Mr. MUNDT) Is absent be-
cause of illness.
I further announce that the Senator
from New Jersey (Mr. CASE), the Senator
from Hawaii (Mr. FoNG), and the Sena-
tor from Maryland (Mr. MATHIAS) are
detained on official business.
The result was announced-yeas 65,
nays 17, as follows :
[No. 423 Leg.]
YEAS-65
Aiken
Fulbright
Muskie
Anderson
Gambrell
Packwood
Bayh
Gravel
Pastore
Beall
Gurney
Pearson
Bellmon
Hansen
Pell
Bennett
Hart
Percy
Bentsen
Hartke
Randolph
Bible
Hatfield
Ribicoff
Brock
Hughes
Schweiker
Brooke
Humphrey
Scott
Buckley
Inouye
Smith
Burdick
Jackson
Stafford
Byrd, Robert C. Javits
Stennis
Cook
Jordan,N.C.
Stevens
Cotton
Long
Stevenson
Cranston
Magnuson
Taft
Dole
Mansfield
Thurmond
Dominick
McClellan
Tower
Eagleton
Metcalf
Weicker
Eastland
Mondale
Williams
Ervin
Montoya
Young
Fannin
Moss
NAYS-17
Allen
Cooper
Nelson
Boggs
Curtis
Proxmire
Byrd,
Goldwater
Roth
Harry F., Jr.
Hruska
Spong
Cannon
Jordan, Idaho
Symington
Church
Miller
Talmadge
NOT VOTING-18
Allott
Griffin
McGovern
Baker
Harris
McIntyre
Case
Hollings
Mundt
Chiles
Kennedy
Saxbe
Edwards
Mathias
Sparkman
Fong
McGee
Tunney
So the bill (S. 3917) as amended, was
passed, as follows:
S. 3917
An Act to authorize the construction of the
completion of the New Senate Office Build-
ing on the east half of square 725 in the
District of Columbia, to authorize the ac-
quisition of certain real property in square
724 in the District of Columbia, to author-
ize the Architect of the Capitol to initiate
and conduct a study of alternate designs
for a vehicle parking garage with limited
commercial facilities to be constructed on
square 724 and an architectural design
competition to be conducted in connection
therewith, and to authorize the acquisition
of all publicly or privately owned property
contained in square 764 in the District of
Columbia as an addition to the United
States Capitol Grounds, and for other pur-
poses
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 "United States Sen-
ate Office Building, Land Acquisition, and
Parking Facilities Planning Act of 1972".
CONSTRUCTION OF AN EXTENSION TO THE NEW
SENATE OFFICE BUILDING
SEC. 2. (a) The Architect of the Capitol,
under the direction of the Senate Office Build-
ing Commission, is authorized to provide for
the construction and equipment of an exten-
sion to the New Senate Office Building In
accordance with plans approved by such
Commission and by the Senate Committee on
Public Works, on the east half of square 725
including the public alley separating the east
and west halves of such square, but excluding
lot 885 in such square, containing office rooms
and such other rooms and accommodations
as may be approved by the Senate Office
Building Commision and by the Senate Com-
mittee on Public Works, including structural
and other changes in the existing New Senate
Office Building necessitated by such construc-
tion, together with approaches, connections
with the Capitol Power Plant and public
utilities, and architectural landscape treat-
ment of the grounds.
(b) Upon completion of the project, the
building and the grounds and sidewalks sur-
rounding the same shall be subject to the
provisions of the Act of June 8, 1942 (40
U.S.C. 174 (c) and (d) ), and the Act of July
31, 1946 (40 V.S.C. 193a-193m, 212a and 212b)
in the same manner and to the same extent
as the present Senate Office Buildings and the
grounds and sidewalks surrounding the same.
(c) During each fiscal year, the Senate
Committee on Public Works shall examine
the progress and costs of construction of such
building and take such steps as are neces-
sary to insure its economical construction.
ACQUISITION OF PROPERTY IN SQUARE 724
SEC. 3. (a) In addition to the real property
contained in square 724 in the District of
Columbia heretofore acquired under Public
Law 85-429, approved May 29, 1958 (72 Stat.
148-149), Public Law 91-382, approved Au-
gust 18, 1970 (84 Stat. 819), and Public Law
92-184, approved December 15, 1971 (85 Stat.
637), the Architect of the Capitol, under the
direction of the Senate Office Building Com-
mission, is hereby authorized to acquire, on
behalf of the United States, by purchase,
condemnation, transfer, or otherwise, as a
site for parking facilities for the United
States Senate, all publicly or privately owned
real property contained in lots 79, 80, 86, 94,
805, 806, 833, 838, 839, 840, and 844 In square
724 in the District of Columbia, and all alleys
or parts of alleys and streets contained
within the curblines surrounding such
square, as such square appears on the records
in the office of the surveyor of the District
of Columbia as of the date of the approval of
this Act: Provided, That for the purposes of
this Act, square 724 shall be deemed to ex-
tend to the outer face of the curbs sur-
rounding such square: Provided further,
That, upon acquisition of any real property
under this Act, the jurisdiction of the Capi-
tol Police shall extend over such property,
and any property acquired under this Act
shall become a part of the United States
Capitol Grounds and be subject to the pro-
visions of sections 193a-193m, 212a, and
212b of title 40, United States Code.
(b) Any proceeding for condemnation
brought tinder this Act shall be conducted
in accordance with the Act of December 23,
1963 (16 D.C. Code, secs. 1351-1388).
(a) Notwithstanding any other provision
of law, any real property owned by the United'
States and any public alleys or parts of alleys
and streets contained within the curblines
surrounding square 724 shall, upon request
of the Architect of the Capitol, made with
the approval of the Senate Office Building
Commission, be transferred to the jurisdic-
tion and control of the Architect of the Capi-
tol without reimbursement or transfer of
funds, and any alleys or parts of alleys - or
streets contained within the curblines of said
square shall be closed and vacated by the
Commissioner of the District of Columbia,
appointed pursuant to part III of Reorganiza-
tion Plan Numbered 3 of 1967, in accordance
with any request therefor made by the Archi-
tect of the Capitol with the approval of such
Commission.
(d) Upon acquisition of any real property
pursuant to this Act, the Architect of the
Capitol, when directed by the Senate Office
Building Commission to so act, is authorized
to provide for the demolition and/or removal
of any buildings or other structures on, or .
constituting a part of, such property and,
pending demolition, to use the property for
Government purposes or to lease any or all of
such property for such periods and under
such terms and conditions as he may deem
most advantageous to the United States and
to incur any necessary expenses in connec-
tion therewith.
(e) Nothing herein shall be construed to
prohibit the continued use of areas in square
724, acquired under authority of the Acts of
May 29, 1958, August 18, 1970, and December
15, 1971, cited in subsection (a) of this sec-
tion, for the parking of automobiles, until
such times as such areas may be required for
construction purposes.
PLANS FOR GARAGE AND RELATED FACILITIES
SEC. 4. (a) The Architect of the Capitol is
authorized to initiate and conduct a study,
after consultation with the appropriate Fed-
eral agencies and individuals experienced in
the design of vehicle parking structures, to
explore design and cost alternatives for con-
struction, on square 724, of a parking garage
with limited commercial facilities, and report
his preliminary findings and recommenda-
tions to the Senate Committee on Public
Works. -
(b) The Architect of the Capitol, concur-
rently with the study authorized in subsec-
tion (a), is authorized to establish, for the
purpose of development of a basic con-
cept therefor, an architectural design com-
petition, in order to encourage the prepara-
tion of an imaginative design for the garage
structure, including limited commercial fa-
cilities and landscaping and to assure a pleas-
ant transition to and maximum coordina-
tion with the surrounding residential and
commercial community in that area of
Northeast Washington within sight of or
adjoining the Capitol Grounds. Such design
concept may consider and include existing
and future land use and structures in said
surrounding community, and shall consider
any existing model cities or other govern-
mental planning for such Northeast area,
including that of the National Capital Plan-
ning Commission. Guidelines and criteria
specifically defining the limits, scope, and all
aspects of the competition shall be developed
and promulgated by the Architect of the
Capitol; with the approval of the Senate Of-
fice Building Commission, and an award for
the best design or designs shall be deter-
mined by a committee jointly designated
for this purpose by the Architect of the
Capitol and the Senate Office Building Com-
mission, in such amount as they may deem
to be appropriate.
ACQUISITION OF SQUARE 764
SEC. 5. (a) The Architect of the Capitol
is authorized to acquire on behalf of the
United States, as an addition to the United
States Capitol Grounds, by purchase, con-
demnation, transfer, or otherwise, all pub-
licly or privately owned property contained
in square 764 in the District of Columbia,
and all alleys or parts of alleys contained
within the curblines surrounding such
square, as such square appears on the rec-
ords in the office of the surveyor of the Dis-
trict of Columbia as of the date of the ap-
proval of this Act.
(b) Any proceeding for condemnation
brought under this Act shall be conducted
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CONGRESSIONAL RECORD -- c ENATE September 13, 1972
in accordance with the Act of December 23,
-1963 (16 D.C. Code, secs. 1351-1368).
e) For the purposes of this Act, square
764 shall be deemed to extend to the outer
?`aace of the curbs surrounding such square.
Notwithstanding any other provision of law,
.iny real property owned by the United States
a,:d any public alleys or parts of alleys and
;t.reets contained within the curblincs sur-
eounding such square shall, upon request of
Whe Architect of the Capitol, be transferred
to the jurisdiction and control of the Arohi-
?:ect of the Capitol without reimbursement or
,eansfer of funds, and any alleys or parts
_,' alleys or streets contained within the
curb-lines of said square shall be closed and va-
~ated by the Commissioner of the District
Columbia, appointed pursuant to part III
of Reorganization Plan Numbered 3 of 1967,
jr, accordance with any request therefor
made by the Architect of the Capitol.
(d) Upon acquisition of such real property
pursuant to this section, the Architect of
the Capitol is authorized to use such prop-
erty as a green park area, pending Its devel-
opment for permanent use as the site of the
John W. McCormack Residential Page School,
subject to approval of the Senate Office
Building Commission and the House Office
Building Commission.
(e) The jurisdiction of the Capitol Police
':hall extend over any real property acquired
,ender this section and such property shall
%'ecome a part of the United States Capitol
Grounds and be subject to the provisions of
sections 193a-193m, 212a, and 212b of title
10. United States Code.
ORLIGATIONAL AND EXPENDITURE AUTHORITY
Sec. 6. The Architect of the Capitol, under
the direction of the Senate Office Building
Commission, is hereby authorized and di-
?ected to enter into such contracts, incur
Mich obligations, and make such expendi-
tures, including expenditures for personal
mnd other services, and expenditures author-
;ed by Public Law 91-646 applicable to the
=architect of the Capitol, as may be neces-
sary to carry out the provisions of this Act.
APPROPRIATIONS
Sr.c. 7. There are hereby authorized to be
appropriated $53,500,000 to carry out the
provisions of this Act, and any sums so ap-
propriated shall remain available until ex-
pended.
Mr. GRAVEL. Mr. President, I move
that the vote by which the bill was passed
be reconsidered.
Mr. MANSFIELD. Mr. President, I
move to lay that motion on the table.
The motion to lay on the table was
agreed to.
EXTENSION OF LIFE OF THE COM-
MISSION ON CIVIL RIGHTS
Mr. ERVIN. Mr. President, I ask the
Chair to lay before the Senate a message
from the House of Representatives on
H.R. 12652.
The PRESIDING OFFICER tMr.
BUCKLEY) laid before the Senate a mes-
age from the House of Representatives
of
social or economic disadvantages."
(b) Title III of the Small Busi less In st-
ment Act of 1958, as amended, is fu.r her
amended by designating sections ;301 thr, igh
316 thereof as "PART A.--SMALL BUasr ens
INVESTMENT COMPANIES"..
(c) Section 301 of the Small Eusinesr, in-
vestment Act of 1958 Is amended by ad ng
the following new subsection:
"(d) Notwithstanding any other prow;:on
of this Act, a MESBIC may be organized nd
chartered under State nonprofit corpora? on
statutes, and may be licensed by the Ade_n-
istration to operate under the provisiO of
this Act.".
(d) Section 302 of the Small Business -n-
vestment Act of 1958 is amended by ac"ng
the following new subsection:
"(d) Notwithstanding subsection (b 2)
of this section, or any other provision of raw,
shares of stock or other equity or deli se-
curities issued by a MESBIC shall be ellIg ble
for purchase by banks and other final, .dal
institutions, subject to the 5 per centum
limitation of subsection (b) (1) of this sec-
tion. MESBIC's shall not be deemed ineligi-
ble for any assistance under this Act be-
cause of such purchases,
(o) Title III is further amended by adding
thereto a new part B as follows:
"PART B. MINORITY ENTERPArsE SMALL
BCSINESS INVESTAAENr COMPANIES
SEC. 317. To encourage the formation and
growth of MESBIC's the Administration is
authorized to purchase the securities of any
such MEt5BIC, subject to the following con-
ditions:
(a j Shares of nonvoting stock (or other
securities having similar characteristics),
provided-
(1) dividends are preferred and cumula-
tive to the extent of 3 per centuni of par
value per annum;
(2) on liquidation or redemptlon, the Ad-
ministration is entitled to the preferred pay-
ment of the par value of such securities and
may require the preferred payment of the
difference between dividends paid and cum-
ulative dividends payable at a rate equal to
the interest rate determined pursuant to
section 303(b) for debentures with a term
of fifteen years, without interest on such
difference;
(3) the purchase price shall be par value
and, in any one sale, $50,000 or more;
(4) the amount of such securities pur-
chased and outstanding at any one time
shall not exceed (A) from a MESBIC having
combined private paid-in capital and paid-
in surplus ("capital"), of less than $300,000
and licensed on or before October 13, 1971,
the amount of capital invested after such
date, nor (B) from any MESBIC having
capital of $300,000 or more but less than
$500,000, the amount of its capital in excess
of $300,000, nor (C) from any MESBIC hav-
ing capital of $500,000 or :more, the amount
of its capital.
(b) Debentures subordinated to any other
debts and obligations of a MESBIC (other
than securities purchased under subsection
(a) of this sectioni, provided-
(1) such debentures are issued for a term
of not to exceed fifteen years;
(2) the interest rate is determined pur-
suant to sections 308 (b) and 318;
(3) the amount of debentures purchased
and Outstanding at any one time from a
MESI3IC having capital of less than $500,000
shall not exceed 200 per centum of its capital
less the amount of preferred securities out-
standing under subsection (a) of this sec-
tion, nor, from a MESBIC having capital of
$500,000 or more, 300 per centum of its capital
less the amount of such preferred securities.
(c) Debentures purchased and outstand-
ing pursuant to section 303(b) or this sec-
tion may be retired simultaneously with the
issuance of preferred securities to meet the
requirements of subsection (b) (3) of this
section.
(dl The Administration may require, as
a condition of the purchase of any securities
from a MESBIC in excess of 200 per centum
of its capital, that the MESBIC achieve and
thereafter maintain a ratio of loans to ven-
ture capital (as defined in section 303) de-
termined by the Administration to he rea-
sonable and appropriate.
SEc. 318. Notwithstanding section 303(b),
the effective rate of interest after October
13, 1971, during the first five years -there-
after of the term of any debenture pur-
chased by the Administration from a
MESBIC shall be the greater of 3 per cen-
turn or 3 percentage points below the in-
terest rate determined pursuant to section
308(b). The Administration Is authorized
to apply interest paid to it by such MESBIC
for the period from October 13, 1971, to the
effective date of this section, without in-
terest thereon, to Interest payable after such
effective date. No MESBIC which has re-
Approved For Release 2005/08/03 : CIA-RDP81-00818R000100050008-1