H01   1 <#FROWN:H01\>Some reporters had difficulty distinguishing in their 
H01   2 records between parts that should have been included in 'road 
H01   3 vehicles and parts' or 'other transport equipment' and parts that 
H01   4 should have been included in other categories. BEA reviewed reports 
H01   5 with large trade values and, after discussions with reporters, 
H01   6 revised those with incorrect reporting. However, reports with low 
H01   7 values were not reviewed, and in some cases, reporters may have 
H01   8 erroneously included both types of parts in 'road vehicles and 
H01   9 parts' or 'other transport equipment.' Thus, these two categories 
H01  10 may be overstated, and other categories, particularly machinery, 
H01  11 may be understated.<p/>
H01  12 <p_>Total U.S. trade associated with U.S. parents and their foreign 
H01  13 affiliates consists of (1) trade between U.S. parents and their 
H01  14 foreign affiliates, (2) trade between other U.S. persons and 
H01  15 foreign affiliates, and (3) trade between U.S. parents and 
H01  16 unaffiliated foreigners. Data on trade between U.S. parents and 
H01  17 their foreign affiliates were collected on the BE-10A and 
H01  18 BE-10B(LF) and (SF) forms; on the BE-10A form, total trade of a 
H01  19 given U.S. parent with all of its foreign affiliates combined was 
H01  20 reported, while on the BE-10B(LF) and (SF) forms, trade of the U.S. 
H01  21 parent with only the individual foreign affiliate covered by that 
H01  22 form was reported. In principle, the sum of a U.S. parent's trade 
H01  23 with each of its individual foreign affiliates, as reported on the 
H01  24 BE-10B forms for those affiliates, should equal the parent's total 
H01  25 trade with all of its affiliates combined, as reported on the 
H01  26 parent's BE-10A form. In fact, however, the sum of the data from 
H01  27 the affiliates' BE-10B forms may not equal the total reported on 
H01  28 their parent's BE-10A form, because of differences in timing and 
H01  29 valuation and because the parent's BE-10A form may include data for 
H01  30 affiliates that are exempt from being reported on the BE-10B 
H01  31 forms.<p/>
H01  32 <p_>In this publication, the data on trade between parents and 
H01  33 affiliates used in computing total U.S. trade associated with U.S. 
H01  34 parents and their foreign affiliates are derived from the 
H01  35 affiliates' BE-10B forms rather than from the U.S. parents' BE-10A 
H01  36 forms. (However, the data derived from the parents' BE-10A forms 
H01  37 are shown as an addendum.) Data on trade between other U.S. persons 
H01  38 and foreign affiliates are also derived from the affiliates' BE-10B 
H01  39 forms. However, data on trade between U.S. parents and unaffiliated 
H01  40 foreigners are from the parents' BE-10A forms.<p/>
H01  41 <p_>In this publication, BEA is showing, for the first time, 
H01  42 separate data on U.S. parent trade with foreign parent groups 
H01  43 (FPG's). A U.S. parent has an FPG if the U.S. parent is, in turn, 
H01  44 owned 10 percent or more by a foreign person. For a given U.S. 
H01  45 parent, the FPG consists of (1) the foreign parent of the U.S. 
H01  46 parent, (2) any foreign person, proceeding up the ownership chain, 
H01  47 that owns more than 50 percent of the person below it, and (3) any 
H01  48 foreign person, proceeding down the ownership chain(s) of each of 
H01  49 these members, that is owned more than 50 percent by the person 
H01  50 above it.<p/>
H01  51 <h_><p_>Direct Investment Position and Balance of Payments 
H01  52 Data<p/><h/>
H01  53 <p_>Direct investment position and balance of payments data cover 
H01  54 U.S. parents' positions in, and transactions with, their foreign 
H01  55 affiliates; in contrast, the direct investment financial and 
H01  56 operating data, discussed earlier, cover the overall activities of 
H01  57 the parents and affiliates themselves. For foreign affiliates, the 
H01  58 data include positions in, and transactions with, them by all 
H01  59 persons, not just their U.S. parents. The U.S. direct investment 
H01  60 position abroad is equal to U.S. parents' equity in, and net 
H01  61 outstanding loans to, their foreign affiliates; foreign affiliates' 
H01  62 total assets, in contrast, are equal to the sum of (1) total 
H01  63 owners' equity in affiliates held by both U.S. parents and all 
H01  64 other persons and (2) total liabilities owed by affiliates to both 
H01  65 U.S. parents and all other persons. For example, suppose that an 
H01  66 affiliate is owned 80 percent by its U.S. parent and that the 
H01  67 affiliate has total owners' equity of $50 million and total 
H01  68 liabilities of $100 million (including $20 million owed to the 
H01  69 parent). In this case, the affiliate's total assets would be $150 
H01  70 million (total owners' equity of $50 million plus total liabilities 
H01  71 of $100 million), and the parents' position in the affiliate would 
H01  72 be $60 million (80 percent of the $50 million of owners' equity 
H01  73 plus the $20 million of intercompany debt).<p/>
H01  74 <p_>In the benchmark survey, data for the position and balance of 
H01  75 payments items were reported in part III of the BE-10B(LF) or (SF) 
H01  76 (or the BE-10B BANK) forms. The balance of payments items consist 
H01  77 of transactions between parents and their affiliates and of 
H01  78 transactions between parents and other persons that change the 
H01  79 parents' equity in their affiliates. The major items that appear in 
H01  80 the U.S. balance of payments accounts for U.S. direct investment 
H01  81 abroad are these:<p/>
H01  82 <p_><*_>bullet<*/> Direct investment capital outflows,<p/>
H01  83 <p_><*_>bullet<*/> Direct investment income,<p/>
H01  84 <p_><*_>bullet<*/> Direct investment royalties and license fees, 
H01  85 and<p/>
H01  86 <p_><*_>bullet<*/> Other direct investment services.<p/>
H01  87 <p_>It should be noted that there are two types of adjustments made 
H01  88 to the balance of payments data presented here before the data are 
H01  89 entered into the U.S. international accounts. First, as noted 
H01  90 earlier, two of these items - income and capital outflows - are not 
H01  91 entered into the international accounts at the reported book values 
H01  92 until they are adjusted to reflect current-period prices.<p/>
H01  93 <p_>Second, as discussed in the section on fiscal year reporting, 
H01  94 the direct investment position and balance of payments data 
H01  95 collected in the 1989 benchmark survey and shown in this 
H01  96 publication are on a fiscal year basis, whereas the data in the 
H01  97 U.S. balance of payments accounts and in BEA's annual series on the 
H01  98 direct investment position are on a calendar year basis. Before 
H01  99 being incorporated into the balance of payments accounts and the 
H01 100 series on the position, the data from the 1989 benchmark survey 
H01 101 will be adjusted to a calendar year basis. These adjusted data for 
H01 102 1989 will also be extrapolated forward to derive universe estimates 
H01 103 for subsequent calendar years, based on sample data collected in 
H01 104 BEA's quarterly surveys for those years. The adjusted 1989 data and 
H01 105 the extrapolated estimates for calendar years 1990-92 are scheduled 
H01 106 for publication in the June and August 1993 issues of the 
H01 107 <tf_>Survey of Current Business<tf/>. As noted earlier, BEA also 
H01 108 plans to revise its balance of payments and direct investment 
H01 109 position data for 1983-88 to incorporate information from the 1989 
H01 110 benchmark survey.<p/>
H01 111 <p_>The balance of payments data included here differ from data 
H01 112 from the 1982 benchmark survey because of methodological and 
H01 113 definitional changes introduced in June 1992 to make BEA's data 
H01 114 more consistent with the international standards recommended in the 
H01 115 forthcoming fifth edition of the International Monetary Fund's 
H01 116 (IMF) <tf_>Balance of Payments Manual<tf/> and in the United 
H01 117 Nations System of National Accounts. These changes include (1) the 
H01 118 presentation of receipts and payments of income, royalties and 
H01 119 license fees, and other private services before deduction of 
H01 120 withholding taxes and (2) the removal of capital gains and losses 
H01 121 from direct investment income. These and other changes are 
H01 122 explained in the sections that follow.<p/>
H01 123 <h_><p_>U.S. direct investment position abroad<p/><h/>
H01 124 <p_>As noted earlier, the U.S. direct investment position abroad is 
H01 125 equal to U.S. parents' equity in, and net outstanding loans to, 
H01 126 their foreign affiliates. The position may be viewed as the U.S. 
H01 127 parents' contribution to the total assets of their foreign 
H01 128 affiliates or as financing provided by U.S. parents to their 
H01 129 affiliates in the form of either equity or debt. The data are 
H01 130 derived from the foreign affiliates' books at yearend.<p/>
H01 131 <p_>The direct investment position estimates published here are at 
H01 132 book value and are not adjusted to current value. Thus, they 
H01 133 largely reflect prices at the time of investment rather than prices 
H01 134 of the current period. Because historical cost is the basis used 
H01 135 for valuation in company accounting records in the United States, 
H01 136 it is the only basis on which companies can report data in BEA's 
H01 137 direct investment surveys. It is also the only basis on which 
H01 138 detailed estimates of the position are available by country, by 
H01 139 industry, and by account. (Elsewhere, however, BEA does provide 
H01 140 aggregate estimates of the position valued in current-period 
H01 141 prices.) For simplicity, all subsequent references to the position 
H01 142 are to the position on a historical-cost (book-value) basis, unless 
H01 143 otherwise stated.<p/>
H01 144 <p_>U.S. parents' equity in incorporated foreign affiliates 
H01 145 consists of the U.S. parents' holdings of capital stock in, and 
H01 146 other capital contributions to, their affiliates and U.S. parents' 
H01 147 equity in the retained earnings of their affiliates. Capital stock 
H01 148 comprises all stock of affiliates, whether common or preferred, 
H01 149 voting or nonvoting. Other capital contributions by U.S. parents, 
H01 150 also referred to as the 'U.S. parents' equity in additional paid-in 
H01 151 capital,' consists of capital, invested or contributed, that is not 
H01 152 included in capital stock, such as amounts paid for stock in excess 
H01 153 of its par or stated value, capitalizations of intercompany 
H01 154 accounts (conversions of debt to equity) that do not result in the 
H01 155 issuance of capital stock, and donations. U.S. parents' equity in 
H01 156 retained earnings is the U.S. parents' shares of the undistributed 
H01 157 earnings of their incorporated foreign affiliates.<p/>
H01 158 <p_>For most unincorporated affiliates, U.S. parents' were able to 
H01 159 provide a breakdown of owners' equity by type. Thus, in tables 
H01 160 showing U.S. parents' equity in affiliates by type, the parents' 
H01 161 equity in both incorporated and unincorporated affiliates are shown 
H01 162 together. For those unincorporated affiliates for which no 
H01 163 breakdown of owners' equity by type was available, all of the 
H01 164 parents' equity in the affiliates was included in capital stock 
H01 165 (which includes additional paid-in capital and capital 
H01 166 contributions) rather than in retained earnings, because these 
H01 167 affiliates usually remit all of their earnings to the U.S. parent. 
H01 168 The U.S. parents' share in total owners' equity (not broken down by 
H01 169 type) is shown separately for incorporated and unincorporated 
H01 170 affiliates in addenda to the direct investment position tables.<p/>
H01 171 <p_>The U.S. parents' net outstanding loans to their foreign 
H01 172 affiliates, shown in the tables as the affiliates' net intercompany 
H01 173 debt to U.S. parents, consist of trade accounts and trade notes 
H01 174 payable, other current liabilities, and long-term debt owed by the 
H01 175 affiliates to their U.S. parents, net of similar items due to the 
H01 176 affiliates from their U.S. parents.<p/>
H01 177 <p_>Intercompany accounts include the value of all capital leases 
H01 178 and of operating leases of more than 1 year between U.S. parents 
H01 179 and their foreign affiliates. (Only long-term operating leases are 
H01 180 included in intercompany accounts to conform to U.S. data on 
H01 181 merchandise trade, which also exclude shipments under leases for 
H01 182 periods of 1 year or less.) The value of property so leased to a 
H01 183 foreign affiliate by its U.S. parent is included in affiliates' 
H01 184 payables, and the net book value of property so leased by a foreign 
H01 185 affiliate to its U.S. parent is included in affiliates' 
H01 186 receivables. Capital leases recognize that title to the leased 
H01 187 property will usually be transferred to the lessee at the 
H01 188 termination of the lease - similar to an installment sale. 
H01 189 Operating leases have a term significantly shorter than the 
H01 190 expected useful life of the tangible property being leased, and 
H01 191 there is usually an expectation that the leased property will be 
H01 192 returned to the lessor at the termination of the lease. For capital 
H01 193 leases, the net book value of the leased property is calculated 
H01 194 according to GAAP. Under GAAP, the lessee records either the 
H01 195 present value of the future lease payments or the fair market 
H01 196 value, whichever is lower; the lessor records the sum of all future 
H01 197 lease receipts. For operating leases of more than 1 year, the value 
H01 198 is the original cost of the leased property less accumulated 
H01 199 depreciation.<p/>
H01 200 <p_>For bank affiliates, the direct investment position is defined 
H01 201 to include only their parents' permanent debt and equity investment 
H01 202 in them; similarly, the direct investment flows that enter the U.S. 
H01 203 balance of payments accounts for these affiliates include only 
H01 204 transactions related to such permanent investment. All other 
H01 205 transactions and positions - mainly claims and liabilities arising 
H01 206 from the parents' and affiliates' normal banking business - are 
H01 207 excluded from the direct investment accounts because they are 
H01 208 included with other banking claims and liabilities in the portfolio 
H01 209 investment accounts. The definition of permanent investment may 
H01 210 vary somewhat from bank to bank. Examples of such investment are 
H01 211 funds from parents that are used to establish or acquire the 
H01 212 affiliates or that finance the affiliates' purchases of property, 
H01 213 plant, and equipment.<p/>
H01 214 
H02   1 <#FROWN:H02\><h_><p_>CHAPTER I<p/>
H02   2 <p_>INTRODUCTION<p/><h/>
H02   3 <p_>Members of the Kentucky General Assembly were not surprised 
H02   4 when the 101st U.S. Congress, in its closing days, placed stringent 
H02   5 new controls on the burning of coal by electric utilities. 
H02   6 Proposals to control acid deposition, commonly referred to as acid 
H02   7 rain, were introduced in Congress as early as 1981. From 1982 until 
H02   8 1990, interim committees of the Kentucky General Assembly studied 
H02   9 congressional proposals to control acid rain and communicated 
H02  10 regularly with the state's congressional delegation on the issue. 
H02  11 Recognizing that Congressional action was close at hand, the 1990 
H02  12 General Assembly enacted Senate Concurrent Resolution 73 on March 
H02  13 29, 1990. Senate Concurrent Resolution 73 directed an interim 
H02  14 legislative committee, the Energy Task Force, to study the 
H02  15 potential impacts of federal acid rain legislation in Kentucky's 
H02  16 economy and to develop a strategy for addressing those impacts.<p/>
H02  17 <p_>On November 15, 1990, the President of the United States signed 
H02  18 into law S.1630, the Clean Air Act Amendments of 1990, Public Law 
H02  19 101-5491. Title IV of the Act contains the acid rain 
H02  20 legislation.<p/>
H02  21 <p_>Acid rain forms when fossil fuel combustion from electric power 
H02  22 plants, industrial boilers, and motor vehicles release pollutants, 
H02  23 primarily sulfur dioxide (SO<sb_>2<sb/>) and nitrogen oxides 
H02  24 (NO<sb_>x<sb/>), into the atmosphere. Reacting with the 
H02  25 SO<sb_>2<sb/> moisture in the atmosphere, and NO<sb_>x<sb/> 
H02  26 emissions are converted into sulfuric and nitric acids, 
H02  27 respectively. The acidic materials, which may be carried long 
H02  28 distances by wind, are released back into the atmosphere or are 
H02  29 deposited on the ground in the form of rain, fog, snow, gas, or dry 
H02  30 particles. Acid rain, in certain concentrations and under certain 
H02  31 conditions, can damage forests, lakes, streams, aquatic life, 
H02  32 buildings, and monuments, and cause human respiratory problems.<p/>
H02  33 <p_>According to a national inventory completed in 1985, electric 
H02  34 utilities were responsible for 69% of SO<sb_>2<sb/> emissions in 
H02  35 the United States, with most of those emissions created by coal 
H02  36 combustion. The transportation sector was identified as the largest 
H02  37 source <}_><-|>catetgory<+|>category<}/> for NO<sb_>x<sb/> 
H02  38 emissions, 43% of the total. Electric utilities were responsible 
H02  39 for 32% of NO<sb_>x<sb/> emissions. Fairly early in the process, 
H02  40 proposals to tackle the acid rain issue narrowed to one source: 
H02  41 fossil-fueled electric power plants.<p/>
H02  42 <p_>Although the Clean Air Act, prior to the 1990 Amendments, did 
H02  43 no specifically address acid rain formations, it did require 
H02  44 certain controls on SO<sb_>2<sb/> and NO<sb_>x<sb/> for industrial 
H02  45 power facilities, as well as electric utility power plants. 
H02  46 However, as the phenomenon of acid rain was recognized and concern 
H02  47 over the effects of acid rain grew in the 1980's, controls in the 
H02  48 existing law were viewed as inadequate and support for increased 
H02  49 controls grew, leading to the inclusion of Title IV acid rain 
H02  50 provisions in the 1990 Clean Air Act Amendments.<p/>
H02  51 <p_>The acid rain issue provoked much argument among the states and 
H02  52 between the U.S. and Canada. Canada and the northeastern states 
H02  53 initiated the congressional acid rain battle, claiming that their 
H02  54 forested areas and lakes were suffering from the long-range 
H02  55 transport of acid rain originating in the midwest.<p/>
H02  56 <p_>Once it became clear that acid rain legislation would target 
H02  57 emissions from coal-burning electric utilities, the congressional 
H02  58 proposals pitted states with high-sulfur coal reserves against 
H02  59 states with low-sulfur coal reserves. The mid-western states of 
H02  60 Ohio, Indiana, and Illinois, which have high-sulfur coal, favored 
H02  61 proposals to require installation of pollution control equipment on 
H02  62 all existing coal-fired utility units. States with low-sulfur coal, 
H02  63 such as Wyoming and Montana, pushed for proposals to give affected 
H02  64 utilities more options for reducing sulfur emissions, including 
H02  65 switching to their low-sulfur coal. States with utilities targeted 
H02  66 for the largest SO<sb_>2<sb/> reductions, again, primarily 
H02  67 midwestern states, argued for cost<?_>-<?/>sharing provisions where 
H02  68 all electric consumers, nationwide, would be subject to a tax to be 
H02  69 used to subsidize the cost of the acid rain controls. The regional 
H02  70 battles still continue, months after the signing of the Clean Air 
H02  71 Act Amendments, as the rules for implementation are being 
H02  72 developed.<p/>
H02  73 <p_>Kentucky, as one of the nation's largest coal-producing states, 
H02  74 with large reserves of high-sulfur coal in the west and 
H02  75 low-to-medium sulfur coal in the east, was in a particularly 
H02  76 difficult position during congressional deliberations. Proposals 
H02  77 which favored one of the state's coalfields were not always 
H02  78 favorable to the other coalfield.<p/>
H02  79 <p_>The state was one of the early supporters of clean coal 
H02  80 technology development, contributing over $10 million for 
H02  81 construction of the atmospheric fluidized bed combustion project at 
H02  82 the Tennessee Valley Authority's Shawnee plant near Paducah. And 
H02  83 much support did exist within the state and the General Assembly 
H02  84 for the position that Congress should not act on the issue without 
H02  85 sound scientific knowledge of the benefits and costs of new acid 
H02  86 rain control. To gain this knowledge the federal government 
H02  87 embarked in 1980 on one of the largest research projects of its 
H02  88 kind ever undertaken, the National Acid Precipitation Assessment 
H02  89 Program (NAPAP). The project took over ten years and $600 million 
H02  90 to complete and involved the efforts of over 1000 scientists in the 
H02  91 United States, Canada, and Great Britain.<p/>
H02  92 <p_>Ironically, the fiscal assessment by the NAPAP project was not 
H02  93 available to either the Senate or House of Representatives as each 
H02  94 chamber passed their initial version of the Clean Air Act 
H02  95 Amendments. A draft of the report surfaced just a month prior to 
H02  96 final action by a conference committee but had little effect on the 
H02  97 legislative process. The final NAPAP report raises serious 
H02  98 questions as to whether the costs of the new acid rain controls 
H02  99 outweigh the benefits NAPAP was able to identify.<p/>
H02 100 <p_>The final bill gives utilities flexibility in making 
H02 101 SO<sb_>2<sb/> and NO<sb_>x<sb/> reductions. Pollution control 
H02 102 equipment is not mandated and no cost-sharing provisions are 
H02 103 included.<p/>
H02 104 <h_><p_>Task Force Activity<p/><h/>
H02 105 <p_>Soon after the President signed the Clean Air Act Amendments of 
H02 106 1990, hereafter referred to as the CAAAs, the Interim Energy Task 
H02 107 Force began its work on Senate Concurrent Resolution 73. In 
H02 108 November 1990, a subcommittee of the Energy Task Force met with 
H02 109 researchers at the University of Kentucky's Center for Applied 
H02 110 Energy Research and reviewed the center's current coal research. 
H02 111 Also that same month the Energy Task Force received its first 
H02 112 briefing on the Clean Air Act Amendments of 1990 from state 
H02 113 officials in the Natural Resources and Environmental Protection 
H02 114 Cabinet and the Governor's Office for Coal and Energy Policy.<p/>
H02 115 <p_>In January 1991, when the General Assembly reorganized several 
H02 116 House and Senate committees, the Energy Task Force's jurisdiction 
H02 117 was broadened to include tourism and the name was changed to the 
H02 118 Tourism Development and Energy Task Force. Because of the 1991 
H02 119 Extraordinary Session of the General Assembly, the new task force 
H02 120 did not meet during the first three months of 1991. At its April 
H02 121 meeting, the Tourism Development and Energy Task Force established 
H02 122 the Subcommittee on Energy and assigned the subcommittee the task 
H02 123 of completing the Senate Concurrent Resolution 73 study on acid 
H02 124 rain legislation.<p/>
H02 125 <p_>The subcommittee devoted most of the remainder of the interim 
H02 126 to the study, hearing testimony from coal producers and coal 
H02 127 miners, from electric utilities in the state, and from various 
H02 128 state agencies which will be involved in implementation of the acid 
H02 129 rain legislation. On November 12, 1991, the Tourism Development and 
H02 130 Energy Task Force completed its work on SCR 73, with the receipt of 
H02 131 the subcommittee's report and adoption of recommendations.<p/>
H02 132 <h_><p_>Review of Chapters<p/><h/>
H02 133 <p_>This report is the final product by the Tourism Development and 
H02 134 Energy Task Force on Senate Concurrent Resolution 73. Chapter II 
H02 135 describes the federal acid rain legislation, including an 
H02 136 SO<sb_>2<sb/> emissions trading system, and discusses the various 
H02 137 compliance options available to affected utilities. Chapter III 
H02 138 presents coal mining trends in this state, as well as factors which 
H02 139 affect national coal markets. Chapter IV is an analysis, based on a 
H02 140 computer model simulation, of the effects of the federal 
H02 141 legislation on the state's economy. Chapter V presents all issues 
H02 142 identified by the various participants of the study process, and 
H02 143 the final chapter presents the task force's findings and 
H02 144 recommendations.<p/>
H02 145 <h_><p_>Future Review<p/><h/>
H02 146 <p_>As the Tourism Development and Energy Task Force worked on this 
H02 147 issue, through its subcommittee, it quickly became apparent that 
H02 148 the task force's work is preliminary. Title IV of the Clean Air Act 
H02 149 Amendments of 1990 - as well as the entire act - is a very 
H02 150 complicated piece of legislation, a product of much political 
H02 151 compromise. The emissions trading system is experimental; there is 
H02 152 uncertainty as to how or indeed whether the experiment will work. 
H02 153 Congress left many of the implementation details up to the U.S. 
H02 154 Environmental Protection Agency (EPA), which has not yet worked out 
H02 155 many of those details. Utilities are now formulating compliance 
H02 156 plans without the final rules; the task force completed its work 
H02 157 under similar uncertainties. As recommended by the task force, the 
H02 158 General Assembly, through its interim committee system, will need 
H02 159 to continue to monitor implementation of Title IV of the Clean Air 
H02 160 Act Amendments of 1990.<p/>
H02 161 <h_><p_>CHAPTER II<p/>
H02 162 <p_>CLEAN AIR AMENDMENTS OF 1990: ACID RAIN PROVISIONS<p/><h/>
H02 163 <p_>When President Bush signed S.1630 into law on November 15, 
H02 164 1990, a major overhaul of the nation's air pollution law was set 
H02 165 into motion. The Clean Air Act Amendments of 1990 (CAAAs) are the 
H02 166 first amendments to the Clean Air Act since 1977 and the first 
H02 167 major environmental law of the 1990s. The amendments will require 
H02 168 as many as 175 regulations. The CAAAs, which include 11 titles, 
H02 169 tighten air standards to control acid rain, urban air pollution, 
H02 170 and toxic air pollution. The legislation sets out a new permitting 
H02 171 program, strengthens enforcement efforts, and mandates additional 
H02 172 clean air research. This chapter summarizes the acid rain 
H02 173 provisions of the CAAAs and explores the various ways affected 
H02 174 entities may comply.<p/>
H02 175 <p_>Title IV, the acid rain title, mandates that by the year 2000, 
H02 176 utilities' overall SO<sb_>2<sb/> emissions will be ten million tons 
H02 177 less than they were in 1980. Nitrogen oxide emissions are to be two 
H02 178 million tons less than they were in 1980. Reductions of 
H02 179 SO<sb_>2<sb/> and NO<sb_>x<sb/> will be accomplished in two phases. 
H02 180 The U.S. Environmental Protection Agency (EPA) will administer the 
H02 181 first phase; states with approved permit programs will administer 
H02 182 the second phase. Whereas there will be no fees for permits in the 
H02 183 first phase, there will be a permit emission fee in Phase II, 
H02 184 which, in most states, will run $25.00 per ton of emissions. All 
H02 185 affected units are required to install continuous emission monitors 
H02 186 to record the levels of SO<sb_>2<sb/> and NO<sb_>x<sb/> emitted at 
H02 187 specific time intervals.<p/>
H02 188 <p_>Utility generating units larger than 25 megawatts will, at some 
H02 189 point, become an affected source. Cogeneration facilities, 
H02 190 facilitites that produce both electricity and process heat from the 
H02 191 same source, are exempt if they produce less than one-third of 
H02 192 their electric output for use by a utility.<p/>
H02 193 <h_><p_>Sulfur Dioxide Reductions<p/><h/>
H02 194 <p_>Title IV's SO<sb_>2<sb/> reduction provisions represent a 
H02 195 radical departure form federal emissions control programs of the 
H02 196 past. A permanent annual sulfur emissions cap for electric utility 
H02 197 plants is set at 8.95 million tons for the year 2000 and each year 
H02 198 thereafter. This represents approximately a 50% reduction in 
H02 199 SO<sb_>2<sb/> emissions. No absolute caps on sulfur emissions are 
H02 200 to be set for individual utilities. Instead the sulfur reductions 
H02 201 will be accomplished through a market-based emissions allowance 
H02 202 trading system. The underlying goal of the SO<sb_>2<sb/> provisions 
H02 203 is to allow each utility flexibility to choose the most 
H02 204 cost-effective way to make SO<sb_>2<sb/> reductions.<p/>
H02 205 <p_>Affected units are to be given set allowances to emit 
H02 206 SO<sb_>2<sb/>. One allowance will permit an affected source to emit 
H02 207 one ton of SO<sb_>2<sb/> during or after a specified calendar year. 
H02 208 The allowances can be traded within the utility's own system, 
H02 209 banked for future use, or sold on the open market. Utilities which 
H02 210 exceed their emissions allowance and do not obtain any additional 
H02 211 allowances to cover their deficit will be fined $2000 per excess 
H02 212 ton and will be required to offset the excess tons the following 
H02 213 year. However, regardless of the number of allowances an affected 
H02 214 source may hold, previously existing SO<sb_>2<sb/> air quality 
H02 215 standards must still be met. For example, units which come under 
H02 216 the New Source Performance Standard of 1977 will not be permitted 
H02 217 to exceed their current SO<sb_>2<sb/> emission rate of 1.2 pounds 
H02 218 per million Btus.<p/>
H02 219 
H03   1 <#FROWN:H03\><p_>Although we are here to discuss the subject matter 
H03   2 in a broad nature, I want you to know that I support H.R. 1502, 
H03   3 which is the Violence Against Women Act.<p/>
H03   4 <p_>I have a special interest in the provisions relating to 
H03   5 domestic violence and, in fact, offered an amendment to the crime 
H03   6 bill that incorporated part of Mrs. Boxer's bill last session. As a 
H03   7 former prosecutor, I know firsthand how difficult it is for women 
H03   8 to come forward in domestic violence cases.<p/>
H03   9 <p_>I am sad to report that today a battered woman stands a better 
H03  10 chance in the courts if her assailant is a stranger. The undeniable 
H03  11 fact is that if the husband or partner is the assailant her 
H03  12 complaint is often dismissed as a domestic squabble or a private 
H03  13 matter between husband and wife. Until very recently, battery 
H03  14 almost never resulted in arrest.<p/>
H03  15 <p_>Why is it that battered women who eventually kill their 
H03  16 husbands in self-defense receive on an average double the sentence 
H03  17 that men who murder their wives receive. I believe we in Congress 
H03  18 have a responsibility to recognize domestic violence for what it 
H03  19 is; and that is, it is a crime. Those guilty of domestic violence 
H03  20 crimes must be held accountable for their actions and punished 
H03  21 under the law.<p/>
H03  22 <p_>We must work to change the perception that domestic violence is 
H03  23 a family matter. We can begin by passing laws that will give our 
H03  24 Nation's police officers, judges, and prosecutors the tools 
H03  25 necessary to treat these types of offenses in the same way as any 
H03  26 other crime. In addition, victims of domestic violence who are 
H03  27 often terrified to come forward need assurances and, indeed, should 
H03  28 be guaranteed that the system will help them and not work against 
H03  29 them.<p/>
H03  30 <p_>Sadly, Mr. Chairman, the problem of violence against women goes 
H03  31 well beyond the disturbing trends in domestic violence. In today's 
H03  32 violent culture, it seems as though every woman has reason to fear. 
H03  33 In fact, the Department of Justice's calculations that three out of 
H03  34 four American women could expect to be victims of at least one 
H03  35 violent crime in their lifetime is, as astounding as it is, 
H03  36 unacceptable. Also unacceptable is the FBI statistic indicating 
H03  37 that rapes have increased four times as fast as the general crime 
H03  38 rate during the past decade, and Mrs. Boxer's bill suggests 
H03  39 proposals in those areas as well.<p/>
H03  40 <p_>I look forward to hearing the testimony this morning and thank 
H03  41 you again, Mr. Chairman, for scheduling this hearing.<p/>
H03  42 <p_>Mr. SCHUMER. Thank you, Mr. Sangmeister.<p/>
H03  43 <p_>Mr. Gekas.<p/>
H03  44 <p_>Mr. GEKAS. I thank the Chair, and I too welcome Senator Biden 
H03  45 and Congresswoman Boxer and Congresswoman Morella to this 
H03  46 hearing.<p/>
H03  47 <p_>For a long time, I had been laboring under the false impression 
H03  48 that we had made great strides in the arena of victimization of 
H03  49 women. In my own State and elsewhere, even in the Federal 
H03  50 establishment, we began to develop recognition of groups that would 
H03  51 be honing in on these various individual problems, like rape 
H03  52 crisis, and other domestic violence entities that really had a 
H03  53 firsthand, hands-on knowledge of the series of problems that we are 
H03  54 encountering in this field, and I was feeling rather smug about it 
H03  55 until this last couple of years when the headlines began to scream 
H03  56 all over the country with a renewed, shall we say, outbreak of 
H03  57 visible incidents involving the victimization of women. So when 
H03  58 Senator Dole and Congresswoman Molinari and I got together to do 
H03  59 our version of a women victims' rights bill, I was eager to renew 
H03  60 my own interest in this field and in preventing such 
H03  61 victimizations.<p/>
H03  62 <p_>We have shield laws, we have increased penalties, we have even 
H03  63 the inclusion of rape-murder in the death penalty provisions 
H03  64 pending, so we are continuously cognizant of the problem. But, a 
H03  65 sweeping change in the attitudes of our citizens and in our law 
H03  66 enforcement, and in those of us who have the responsibility of 
H03  67 crafting new laws, still remains with us. That is why I am eager to 
H03  68 proceed with listening to our colleagues and in hearing hard 
H03  69 testimony for our consideration.<p/>
H03  70 <p_>Thank you, Mr. Chairman.<p/>
H03  71 <p_>Mr. SCHUMER. Thank you, Mr. Gekas.<p/>
H03  72 <p_>Congressman Washington.<p/>
H03  73 <p_>Mr. WASHINGTON. Thank you for recognizing me, Mr. Chairman. I 
H03  74 don't have a prepared statement, but I would like to say that I 
H03  75 have always felt that leadership was defined by, or at least the 
H03  76 qualities of leadership were essentially defined by those who had 
H03  77 the courage to step forward and to recognize a problem and do what 
H03  78 was right. I am therefore not at all surprised that Senator Biden 
H03  79 and Congresswomen Boxer and Morella, all of whom I respect and 
H03  80 admire very much, have taken the leadership on this issue. So I 
H03  81 look forward to hearing their testimony, and I am happy to be an 
H03  82 original cosponsor of H.R. 1502, and I hope that we can find a way 
H03  83 to make all the provisions that are required in order to beef up 
H03  84 our law to make all our citizens understand that there is no 
H03  85 difference between violence committed against women and violence 
H03  86 committed against others. In fact, if there were to be a 
H03  87 distinction, I think we would look on it with more abhorrence than 
H03  88 violence committed against men, but that would sound chauvinistic 
H03  89 on the other end.<p/>
H03  90 <p_>At any rate, I look forward to hearing all the testimony. I 
H03  91 have had the opportunity to read over the testimony of the 
H03  92 witnesses last evening, a lot of which brought tears to my eyes. I 
H03  93 want to hear it again, and I want us to move forward on this 
H03  94 legislation. I want us to get it on the floor and get it passed and 
H03  95 over to the President's desk as soon as possible.<p/>
H03  96 <p_>Thank you, Mr. Chairman.<p/>
H03  97 <p_>Mr. SCHUMER. Thank you, Mr. Washington.<p/>
H03  98 <p_>Mr. Ramstad.<p/>
H03  99 <p_>Mr. RAMSTAD. Thank you, Mr. Chairman.<p/>
H03 100 <p_>I, too, thank you for holding this important hearing today. As 
H03 101 we all know, far too many women in our neighborhoods are battered, 
H03 102 far too many women on our college campuses are raped, and I might 
H03 103 add to Mr. Sensenbrenner's comment that the most recent national 
H03 104 study corroborates the University of Minnesota study, which was a 
H03 105 local study done in my State, that, in fact, one of four college 
H03 106 women during her 4-year college career is the victim of either 
H03 107 attempted rape or an actual rape, a full-fledged sexual assault, 
H03 108 and, as we all know, far too many women are denied justice.<p/>
H03 109 <p_>On top of all that, we know that these crimes are vastly 
H03 110 underreported. The same study I just cited shows that, once again, 
H03 111 fewer than 10 percent of all sexual assaults in this country are 
H03 112 reported.<p/>
H03 113 <p_>In Minnesota alone, with a population of just over 4 million 
H03 114 people, further research indicates there may be over 400,000 
H03 115 battered women, yet 41 of our 87 counties do not have battered 
H03 116 women's programs. In some counties, a battered woman's nearest 
H03 117 option for emergency safety is over 100 miles away. In the Twin 
H03 118 Cities metropolitan area, part of which I represent, more than 
H03 119 two-thirds of women seeking safe shelter from domestic violence are 
H03 120 turned away due to lack of space.<p/>
H03 121 <p_>Clearly, Mr. Chairman, the Federal Government must step in to 
H03 122 buttress State efforts to prevent violence against women, to 
H03 123 prosecute their attackers, and to provide victims shelter and much 
H03 124 needed treatment.<p/>
H03 125 <p_>Mr. Chairman, I am particularly pleased today that we will 
H03 126 receive testimony from Jenny Katzoff, who was the victim of sexual 
H03 127 assault as a 1st-year college student and whose allegations of rape 
H03 128 were grossly mishandled by a number of different college officials. 
H03 129 As Jenny knows, we tried but just weren't able to get her out to 
H03 130 Minnesota to testify at a recent field hearing that Congresswoman 
H03 131 Molinari, Congresswoman Penny, and I conducted last September on 
H03 132 the issue of campus sexual assault. Thus, I am very pleased that we 
H03 133 will be able to hear from her today.<p/>
H03 134 <p_>I am also grateful that Senator Biden and our distinguished 
H03 135 colleagues, Congresswomen Boxer and Morella, are here today. 
H03 136 Senator Biden and I introduced the Campus Sexual Assault Victims 
H03 137 Bill of Rights Act, H.R. 2363 and S. 1287, last year. This 
H03 138 legislation, which now has 165 cosponsors in the House, complements 
H03 139 the Violence Against Women Act which I was proud to cosponsor.<p/>
H03 140 <p_>H.R. 2363, the campus sexual assault victims bill, would 
H03 141 protect campus rape victims by requiring university and college 
H03 142 officials to make victims aware of their legal rights and assist 
H03 143 them in bringing allegations of sexual assault before the criminal 
H03 144 justice system. Our bill also protects victims who choose to go 
H03 145 through campus disciplinary proceedings. But the choice should be 
H03 146 with the victim.<p/>
H03 147 <p_>Jenny's tragic story shows exactly why we must enact both the 
H03 148 Violence Against Women Act and the Campus Sexual Assault Victims' 
H03 149 Bill of Rights Act. Senator Biden and Congresswomen Boxer and 
H03 150 Morella obviously recognize this as they are sponsors of both, 
H03 151 Senator Biden being the principal sponsor of both of these bills in 
H03 152 the Senate, and Congresswomen Boxer and Morella are cosponsors. We 
H03 153 must work to prevent rape as well as ensure that rape survivors are 
H03 154 not traumatized a second time because justice is denied them.<p/>
H03 155 <p_>Mr. Chairman, I think this will be one of the most important 
H03 156 hearings that we will hold this year, and I thank you again for 
H03 157 your leadership in this area.<p/>
H03 158 <p_>Mr. SCHUMER. Thank you, Mr. Ramstad.<p/>
H03 159 <p_>Now let us go on to our first panel. If the witnesses don't 
H03 160 mind, I would like to ask Connie Morella maybe to join us because 
H03 161 she not only has her legislation but she is the second sponsor of 
H03 162 the bill after Congresswoman Boxer for the Violence Against Women 
H03 163 Act.<p/>
H03 164 <p_>So, Connie, you are welcome to join us and maybe say a few 
H03 165 words after Joe and Barbara.<p/>
H03 166 <p_>As our first panel of witnesses today, I am pleased to welcome 
H03 167 two - three now - very distinguished Members of Congress: Senator 
H03 168 Joe Biden of Delaware, Representative Barbara Boxer from the Sixth 
H03 169 District of California, and Representative Connie Morella from the 
H03 170 Eighth District of Maryland.<p/>
H03 171 <p_>Senator Biden and Representative Boxer and Representative 
H03 172 Morella have been leaders in combating violence against women. 
H03 173 Senator Biden introduced the Violence Against Women Act, S. 15, 
H03 174 which was reported favorably by the Senate Judiciary Committee, and 
H03 175 Representatives Boxer and Morella have introduced the Violence 
H03 176 Against Women Act, H.R. 1502, here in the House. All three have 
H03 177 been real leaders on this issue, being the beacon for not only the 
H03 178 Congress but for the country in helping us all recognize not only 
H03 179 how serious the problem is but how hidden it has been for so 
H03 180 long.<p/>
H03 181 <p_>I want to thank all of you for coming, commend you for your 
H03 182 efforts, and turn over the floor to you.<p/>
H03 183 <p_>Senator Biden, again, it is an honor for you to be here, and 
H03 184 you may proceed. We are doing it in alphabetical order. It is not 
H03 185 because you are a Senator or a man.<p/>
H03 186 <p_>STATEMENT OF HON. JOSEPH BIDEN, A SENATOR IN CONGRESS FROM THE 
H03 187 STATE OF DELAWARE<p/>
H03 188 <p_>Mr. BIDEN. Thank you, Mr. Chairman. Thank you very much. Let me 
H03 189 begin by thanking my colleagues on my left and right for their 
H03 190 leadership. Quite frankly, it is not only their leadership in 
H03 191 drafting and pushing this legislation, but also their standing that 
H03 192 has given this legislation the kind of credibility that it 
H03 193 otherwise might not have had. The mere fact that my friend, Barbara 
H03 194 Boxer, immediately indicated an interest in perfecting this 
H03 195 legislation and introducing it gave it a legitimacy - and I mean 
H03 196 this sincerely - that I was not capable of giving it by the mere 
H03 197 fact of drafting parts of it on the Senate side. I want to thank 
H03 198 both my colleagues for their work.<p/>
H03 199 <p_>As you know, Mr. Chairman - you and I have worked together on a 
H03 200 lot of crime issues - I try not to beat around the bush. I am not 
H03 201 going to take your time by going through each part of this 
H03 202 legislation - it has a number of titles.
H03 203 
H04   1 <#FROWN:H04\><p_><h_>Chapter III<p/>
H04   2 <p_>ASSESSMENT OF HIGHWAY NEEDS<p/><h/>
H04   3 <p_>The Task Force to Study Highway Needs held public hearings in 
H04   4 all twelve highway districts. These hearings assisted the Task 
H04   5 Force in identifying projects being proposed by the Department of 
H04   6 Highways' personnel and the local elected officials of the 
H04   7 district.<p/>
H04   8 <p_>The intent of the Task Force was to identify those corridors 
H04   9 which would have the greatest impact on a region. The Task Force 
H04  10 defines corridor as a major route through Kentucky or a route which 
H04  11 connects a rural area to its regional center or another corridor. 
H04  12 While the Task Force recognizes the needs for storage lanes, local 
H04  13 connector roads, curve realignments and other types of local 
H04  14 improvement projects, priority was given to establishing a system 
H04  15 of roads which would allow each region better access to larger 
H04  16 markets of the area. The state's philosophy of road building, the 
H04  17 Task Force believes, should continue to emphasize connecting the 
H04  18 rural areas to the urban markets.<p/>
H04  19 <p_>The finding of the Task Force is that the 1990-1996 highway 
H04  20 construction proposal is the best starting point for the future of 
H04  21 road building in Kentucky and these identified needs should be 
H04  22 addressed prior to the introduction of other needs.<p/>
H04  23 <p_>The information obtained through the hearing process, coupled 
H04  24 with an examination of the highway accessibility of every county in 
H04  25 Kentucky, allowed the Task Force to develop its strategic highway 
H04  26 corridor system. The highway corridor system includes the existing 
H04  27 limited access system, key US routes, and other corridors which 
H04  28 need upgrading to four lanes.<p/>
H04  29 <p_>The following discussion is the strategic corridor system 
H04  30 identified by the Task Force to Study Highway Needs. The first 
H04  31 segment is a list of highways which currently provide adequate 
H04  32 access to the Commonwealth. Following that list is a discussion of 
H04  33 highways which the Task Force identified as needing improvement in 
H04  34 order to provide access to all regions of the Commonwealth.<p/>
H04  35 <h_><p_>Adequate Corridors<p/><h/>
H04  36 <p_>The following routes have been determined to provide adequate 
H04  37 accessibility, with the exception of minor reconstruction and 
H04  38 improvements which will maintain the functional integrity of the 
H04  39 existing system. For example, several interstate routes need 
H04  40 additional lanes and these improvements are critical to the highway 
H04  41 network. In addition, many of the proposed corridors will connect 
H04  42 to the routes presented in this section.<p/>
H04  43 <h_><p_>East to West Corridors<p/><h/>
H04  44 <p_>Interstate 64<p/>
H04  45 <p_>Mountain Parkway from I-64 to Campton<p/>
H04  46 <p_>Bluegrass Parkway<p/>
H04  47 <p_>Western Kentucky Parkway<p/>
H04  48 <p_>Cumberland Parkway<p/>
H04  49 <p_>Interstate24<p/>
H04  50 <p_>Audubon Parkway<p/>
H04  51 <h_><p_>North to South Corridors<p/><h/>
H04  52 <p_>Interstate 75<p/>
H04  53 <p_>Interstate 65<p/>
H04  54 <p_>Green River Parkway<p/>
H04  55 <p_>Pennyrile Parkway<p/>
H04  56 <p_>Purchase Parkway<p/>
H04  57 <p_>Interstate 71<p/>
H04  58 <h_><p_>Circumferential Corridors<p/><h/>
H04  59 <p_>Interstate 264<p/>
H04  60 <p_>Interstate 265<p/>
H04  61 <p_>Interstate 275<p/>
H04  62 <p_>KY 922, KY 4, US 25<p/>
H04  63 <p_>The Task Force is defining an adequate corridor as an existing 
H04  64 facility of four or more lanes. Despite this categorization, some 
H04  65 of these corridors will need reconstruction in order to maintain 
H04  66 their functional value. The improvements for those purposes are 
H04  67 estimated by the Department of Highways to be $2,230,400,000.<p/>
H04  68 <h_><p_>Corridors Needing Development<p/><h/>
H04  69 <p_>The routes which follow are projects for which the Task Force 
H04  70 is recommending improvement. The Task Force recommends that each 
H04  71 route be designed as a four-lane facility; however, it realizes 
H04  72 that initial reconstruction as quality two-lane routes may be a 
H04  73 desirable goal.<p/>
H04  74 <p_>The discussion of each route will provide the rationale for 
H04  75 project inclusion, points of interest along each route and a cost 
H04  76 estimate provided by the Department of Highways.<p/>
H04  77 <h_><p_>U.S. 23<p/><h/>
H04  78 <p_>U.S. 23 is the major north to south corridor in eastern 
H04  79 Kentucky. It enters the state at South Shore, Kentucky and exits at 
H04  80 Jenkins, Kentucky. Its route intersects with major east to west 
H04  81 corridors including I-64, KY 114 (connects to Mountain Parkway), KY 
H04  82 80, and U.S. 119. This corridor is the major route in eastern 
H04  83 Kentucky and serves to connect the region with the larger markets 
H04  84 in all directions.<p/>
H04  85 <p_>Completion of the segments of U.S. 23, as authorized by the 
H04  86 1990 road bond issue projects, was emphasized at public hearings in 
H04  87 Districts 9 and 12. The entire length of this route will be 
H04  88 four-lane upon completion. Points of interest along this route 
H04  89 include: Paintsville Lake State Park, Jenny Wiley State Resort 
H04  90 Park, Fishtrap Lake, and Dewey Lake.<p/>
H04  91 <p_>This route will complete U.S. 23 as a four-lane facility from 
H04  92 monies allocated by the 1990 bond issue and federal highway 
H04  93 development funds. For that reason, no cost estimate is 
H04  94 included.<p/>
H04  95 <h_><p_>U.S. 25E<p/><h/>
H04  96 <p_>U.S. 25E connects with I-75 at Corbin and extends southeast to 
H04  97 Middlesboro and into Tennessee. Points of interest along this route 
H04  98 include: Pine Mountain State Resort Park, Kentucky Ridge State 
H04  99 Forest, and Cumberland Gap National Historical Park.<p/>
H04 100 <p_>Two segments of U.S. 25E are currently under construction. A 
H04 101 section south of Barbourville to Pineville is being funded by the 
H04 102 1990 bond issue. A second project is the Cumberland Gap tunnel 
H04 103 project just south of Pineville. Upon completion of this project, 
H04 104 U.S. 25E will be a four-lane facility. For that reason no cost 
H04 105 estimate is included.<p/>
H04 106 <h_><p_>U.S. 127<p/><h/>
H04 107 <p_>U.S. 127 is a north to south corridor entering the state at 
H04 108 Newport and extending south to Static, at the Kentucky line, and on 
H04 109 into Tennessee. The current bond issue will provide major 
H04 110 reconstruction along this route. In addition, U.S. 127 will provide 
H04 111 access to I-64, the Bluegrass Parkway and the Cumberland Parkway. 
H04 112 Points of interest along this route include: Buckley Hills Wildlife 
H04 113 Sanctuary, Old Harrod State Park, Isaac Shelby State Historic 
H04 114 Shrine, Constitution Square, Herrington Lake, Lake Cumberland, and 
H04 115 Dale Hollow Lake.<p/>
H04 116 <p_>The 1990 bond issue included several sections of U.S. 127 for 
H04 117 improvements. The six-year road plan included $105,977,000 in 
H04 118 projects for the U.S. 127 corridor. In addition, $79,000,000 was 
H04 119 cited in long range needs for U.S. 127.<p/>
H04 120 <h_><p_>US 119<p/><h/>
H04 121 <p_>US 119 enters Kentucky at South Williamson and traverses the 
H04 122 southeast border of Kentucky, intersecting US 25E at Pineville. The 
H04 123 route joins US 23 at Pikeville; therefore, the segment from Dorton 
H04 124 to Jenkins is incorporated into the current bond issue, as is a 
H04 125 section of US 119 over Pine Mountain to Letcher County.<p/>
H04 126 <p_>The improvements of US 119 can be divided into two distinct 
H04 127 sections: the section between South Williamson and Pikeville and 
H04 128 the section between Pineville and Jenkins. The section between 
H04 129 South Williamson and Pikeville was identified by the local 
H04 130 officials at the District 12 hearing as a major need. The two-lane 
H04 131 section traverses two mountains and its narrow curvy nature makes 
H04 132 it hazardous. Improvement to the section would also extend a 
H04 133 multi-lane road into a previously isolated area of Pike County, 
H04 134 allowing easier access to I-77 in West Virginia, opening the area 
H04 135 to eastern markets.<p/>
H04 136 <p_>US 119 from Pineville to Jenkins crosses Letcher, Harlan, and 
H04 137 Bell Counties. These counties have been established as being at 
H04 138 least 25 miles away from an existing continuous four-lane highway. 
H04 139 This project was also identified at the District 11 public hearing 
H04 140 as a major corridor need for the region. The counties which will 
H04 141 directly benefit from this improvement have the following 
H04 142 unemployment and per capita income figures:<p/>
H04 143 <p_><O_>table<O/><p/>
H04 144 <p_>Development of US 119 would give this region an east to west 
H04 145 route which would provide greater access to the US 23 corridor in 
H04 146 Eastern Kentucky, and the US 25E corridor, which accesses 
H04 147 Interstate 75. These connections would provide access to major 
H04 148 markets in the northeast and southeast. A segment of this route was 
H04 149 placed in the 1990 road bond issue. The estimated cost of the 
H04 150 remaining portion of the project is $782,780,000.<p/>
H04 151 <h_><p_>US 460<p/><h/>
H04 152 <p_>The section of US 460 from Pikeville to the Kentucky-Virginia 
H04 153 line is identified as a corridor which needs development. 
H04 154 Improvement to this corridor was mentioned at the public hearing in 
H04 155 District 12. The justification provided was improving tourist 
H04 156 access to Fishtrap Lake and the Breaks Interstate Park.<p/>
H04 157 <p_>A construction project in this area would also improve access 
H04 158 to an isolated area of Pike County. The county has an unemployment 
H04 159 rate in excess of 9% and a per capita income of approximately 
H04 160 $10,000, which is about $3,000 less than the statewide average.<p/>
H04 161 <p_>US 460 would connect at Grundy, Virginia, and eventually would 
H04 162 access Interstate 77 at Princeton, West Virginia, to the east. The 
H04 163 west connection at Pikeville would connect US 23, which is a major 
H04 164 north-south corridor in the Eastern United States. US 23 connects 
H04 165 with Interstate 64 in northern Kentucky, and the nearest interstate 
H04 166 connection to the south is Interstate 77. The estimated cost of 
H04 167 this project is $150,000,000.<p/>
H04 168 <h_><p_>The Mountain Parkway and KY 114<p/><h/>
H04 169 <p_>The segment of this corridor needing improvement is from 
H04 170 Campton to Prestonsburg. The parkway's four-lane section currently 
H04 171 stops at Campton and continues as a two-lane route from 
H04 172 Salyersville to Prestonsburg, with truck climbing lanes to 
H04 173 Salyersville, where it connects with KY 114. KY 114 is a two-lane 
H04 174 route which connects with US 23. The counties directly benefiting 
H04 175 from this project are Wolfe, Magoffin, and Floyd.<p/>
H04 176 <p_>The extension of the Mountain Parkway was cited as a need at 
H04 177 the public hearings in Districts 10 and 12. A concern mentioned at 
H04 178 these hearings was that the completion of US 23 would allow easier 
H04 179 access to out-of-state markets by the populace in this area. The 
H04 180 parkway has long provided Eastern Kentucky a connection to 
H04 181 Lexington as a retail center, but the lack of improvement to this 
H04 182 route could change the habits of consumers, especially with the 
H04 183 completion of improvements on US 23. Magoffin and Floyd Counties 
H04 184 are both at least 25 miles from an existing four-lane facility. An 
H04 185 improved east to west feeder in this area would connect north/south 
H04 186 corridors at both ends. The west connection is Interstate 64 at 
H04 187 Winchester, just 16 miles from the Interstate 75 junction. The east 
H04 188 connection is US 23, which has been mentioned previously.<p/>
H04 189 <p_>Wolfe, Magoffin and Floyd Counties have unemployment rates 
H04 190 between 9% and 15% and per capita income ranging from $7,000 to 
H04 191 $9,500. Both Wolfe and Magoffin counties have unemployment rates 
H04 192 about twice the statewide average. State Parks along this route 
H04 193 include Natural Bridge State Resort Park and Red River Gorge. The 
H04 194 estimated cost of this project is $350,000,000.<p/>
H04 195 <h_><p_>KY 15<p/><h/>
H04 196 <p_>KY 15 traverses Wolfe, Breathitt, Perry, and Letcher Counties. 
H04 197 Improvement to this corridor would provide easier access in these 
H04 198 counties to the Mountain Parkway and US 119 south of Whitesburg.<p/>
H04 199 <p_>This improvement was cited as a need in the public hearing in 
H04 200 District 10 and, as a corridor, need by the Economic Development 
H04 201 Cabinet. Breathitt, Perry and Letcher Counties are all at least 25 
H04 202 miles from a continuous four-lane highway. The unemployment rate is 
H04 203 approximately 9% in each county and the per capita income is about 
H04 204 $9,000.<p/>
H04 205 <p_>Breathitt County is one of the counties previously identified 
H04 206 as a county with only Kentucky routes. Buckhorn Late State Resort 
H04 207 Park is located along this corridor. The estimated cost of this 
H04 208 project is $473,700,000.<p/>
H04 209 <h_><p_>KY 7<p/><h/>
H04 210 <p_>KY 7 was identified as having potential regional significance 
H04 211 at the public hearing in District 9. This route is a north to south 
H04 212 corridor which crosses one of the most economically depressed 
H04 213 <}_><-|>area<+|>areas<}/> in Kentucky. The proposed improvement 
H04 214 would connect KY 7 to Interstate 64 in Carter County and the 
H04 215 Mountain Parkway at Salyersville. The counties receiving direct 
H04 216 benefit from this corridor improvement are Carter, Elliott, Morgan, 
H04 217 and Magoffin. Grayson Lake State Park lies along this corridor.<p/>
H04 218 <p_>Morgan and Magoffin Counties are 25 miles from a continuous 
H04 219 four-lane highway and the major route in Elliott County is KY 7. 
H04 220 The following economic data reveal problems associated with this 
H04 221 area.<p/>
H04 222 <p_><O_>table&caption<O/><p/>
H04 223 <h_><p_>KY 11<p/><h/>
H04 224 <p_>KY 11 was identified as a need at the District 10 meeting. This 
H04 225 route is a north to south corridor which connects at the Slade exit 
H04 226 on the Mountain Parkway and runs south to just east of Manchester 
H04 227 on the Daniel Boone Parkway. This corridor has been upgraded from 
H04 228 Slade to Beattyville. Counties receiving direct benefit from 
H04 229 improvement to the remaining segment of KY 11 include Lee, Owsley, 
H04 230 and Clay.<p/>
H04 231 <p_>Lee and Owsley Counties are areas which have been previously 
H04 232 identified as having only Kentucky routes. Owsley and Clay Counties 
H04 233 are both outside of the 25-mile criterion. These counties can also 
H04 234 be identified as depressed areas by the following data:<p/>
H04 235 <p_><O_>table&caption<O/><p/>
H04 236 <h_><p_>US 421<p/><h/>
H04 237 <p_>US 421 is a major highway in the network of interstate 
H04 238 connectors.
H04 239 
H05   1 <#FROWN:H05\><p_>Second, financial factors could also have a 
H05   2 bearing on a decision about whether to appropriate. In particular, 
H05   3 a concern that an uncured default on a bond issued by one authority 
H05   4 might cause financial markets to increase the costs of issuance or 
H05   5 lower the rating assigned to subsequent bonds of other state debt 
H05   6 authorities could lead the General Assembly to appropriate funds to 
H05   7 cure the default. Finally, even in the absence of any legal and 
H05   8 financial consequences of a default, political factors could be 
H05   9 such that legislators have little choice but to appropriate 
H05  10 funds.<p/>
H05  11 <p_>Thus, the purpose of the research is to identify the likely 
H05  12 legal, financial and political consequences of a default of the 
H05  13 various state debt authorities. Because the research issues are 
H05  14 complex and because little prior research addresses the issues, 
H05  15 five distinct research methods were utilized.<p/>
H05  16 <h_><p_>Legal Research<p/><h/>
H05  17 <p_>First, legal research was conducted by an LRC staff attorney to 
H05  18 determine whether current law contains any provision that could be 
H05  19 used to require the General Assembly to appropriate funds in the 
H05  20 event of a default by any of the state debt authorities. The 
H05  21 results of the legal research are presented in Chapter II.<p/>
H05  22 <h_><p_>Case Studies<p/><h/>
H05  23 <p_>The second approach was to conduct case studies of past 
H05  24 defaults of bonds issued by state debt authorities in other states. 
H05  25 Since the late 1970's, the Bond Investor's Association (BIA) has 
H05  26 tracked defaults of corporate and municipal bonds. At the request 
H05  27 of LRC staff, BIA searched their on-line database for the years 
H05  28 1980-1990 and identified 71 defaults of bonds issued by state debt 
H05  29 authorities, in twenty states. Staff conducted a telephone 
H05  30 interview with the ranking legislative staff (or a designee) having 
H05  31 knowledge of state debt management issues in each of those states. 
H05  32 The interview questionnaire (Appendix A) was intended to elicit 
H05  33 information regarding the legal, financial and political 
H05  34 consequences of each default for the state legislature, and to 
H05  35 identify any actions the legislature considered in response to the 
H05  36 default. These case studies are presented in Chapter III.<p/>
H05  37 <h_><p_>Expert Opinions<p/><h/>
H05  38 <p_>The third piece of the research utilized a technique known as 
H05  39 the 'Adelphi technique,' whereby a small number of experts in a 
H05  40 particular field are asked their opinions concerning the issues 
H05  41 under study. To this end, a random sample of listings was drawn 
H05  42 from the <tf_>Bond Buyer's Municipal Marketplace<tf/> and a survey 
H05  43 questionnaire was sent to each selected listing. The survey 
H05  44 instrument (Appendix B) contained open-ended questions concerning 
H05  45 what financial consequences the respondents perceived from the 71 
H05  46 actual defaults identified in the BIA search. They were also asked 
H05  47 for opinions regarding expected consequences from a 
H05  48 <tf|>hypothetical default of any of the active Kentucky state debt 
H05  49 authorities. A summary of the survey responses is presented in 
H05  50 Chapter IV and copies of the complete responses are contained in 
H05  51 Appendix C.<p/>
H05  52 <h_><p_>Periodical Search<p/><h/>
H05  53 <p_>A fourth research activity was a search of newspaper and 
H05  54 periodical indexes for articles relating to defaults of state debt 
H05  55 authorities. There were two aspects to this research. First, a 
H05  56 search was conducted for articles and editorials pertaining to the 
H05  57 particular defaults examined in the case studies. The purpose here 
H05  58 was to see if the press had extensively covered the default and 
H05  59 had, perhaps as a reflection of public opinion, called for state 
H05  60 action to cure the default. The results of the search pertaining to 
H05  61 the existing defaults are reported in the summary of each case 
H05  62 study.<p/>
H05  63 <p_>A second search of indexes focused on the more general topic of 
H05  64 municipal bond defaults. Specific attention was given to 
H05  65 identifying recent articles in the national financial press which 
H05  66 discussed issues pertinent to market expectations about municipal 
H05  67 defaults. In particular, staff reviewed all 1990 and 1991 issues of 
H05  68 <tf|>MuniWeek, a national news weekly devoted to the municipal bond 
H05  69 market, to identify relevant articles. Articles obtained in the 
H05  70 second search are discussed in Chapter IV.<p/>
H05  71 <h_><p_>Statistical Analysis<p/><h/>
H05  72 <p_>Staff believed that concerns about possible financial 
H05  73 consequences of a default would be a major factor in any 
H05  74 legislative decision to appropriate funds. However, the previously 
H05  75 outlined research relied on individual perceptions of market 
H05  76 responses to a default, rather than on actual assessments of market 
H05  77 responses. Therefore, the final piece of the research represents an 
H05  78 attempt to determine whether the defaults identified in the case 
H05  79 studies had a statistically significant effect on the cost of 
H05  80 subsequent issues of state debt authorities. Staff obtained data on 
H05  81 bonds issued from 1980-1989 by the debt authorities of all 50 
H05  82 states, for either public projects or industrial development 
H05  83 projects. Variables were incorporated to control for the effect of 
H05  84 other factors, such as project type, the condition of the state's 
H05  85 economy, the amount of state debt-outstanding and the general level 
H05  86 of interest rates in the economy. A regression analysis was 
H05  87 conducted to assess the amount of variation in interest costs which 
H05  88 could be attributed to the existence of a prior state default. A 
H05  89 full description of the statistical research and a discussion of 
H05  90 the results are presented in Chapter V.<p/>
H05  91 <p_>Chapter VI presents a summary assessment of the various 
H05  92 research pieces. The chapter also includes staff recommendations 
H05  93 regarding changes the General Assembly may want to consider in its 
H05  94 oversight of the Commonwealth's state debt-issuing authorities.<p/>
H05  95 <h_><p_>Current Oversight of State Debt Authorities<p/><h/>
H05  96 <p_>Like most states, Kentucky has long issued bonds to pay for 
H05  97 major capital projects. Similar to a mortgage, a bond is a promise 
H05  98 to pay principal and interest in the future in return for money 
H05  99 borrowed to fund a project for current use. In a mortgage loan, the 
H05 100 house stands as collateral for the loan. If the borrower fails to 
H05 101 repay the loan as promised, the lender is allowed to take 
H05 102 possession of the house.<p/>
H05 103 <p_>However, in the case of state borrowing, it would be difficult 
H05 104 for bondholders to take possession of a road or the state capitol 
H05 105 building. So rather than pledging the project as collateral for the 
H05 106 bonds, traditional practice has been for states to pledge the 'full 
H05 107 faith and credit' of the state for bond retirement. Bonds which 
H05 108 pledge the full faith and credit of a government issuer are called 
H05 109 <tf_>general obligation bonds<tf/>. With such bonds, if the 
H05 110 government fails to make the regularly scheduled debt service 
H05 111 payments, bondholders may go to court and force the government to 
H05 112 do whatever is necessary, including raise taxes, to make the 
H05 113 promised principal and interest payments. A <tf_>special or limited 
H05 114 obligation bond<tf/> is one that pledges only certain tax or other 
H05 115 receipts as collateral for the bond. An example is the pledging of 
H05 116 the receipts of a motor fuels tax to retire a bond used to build a 
H05 117 highway. State bonds have usually been issued with a repayment 
H05 118 schedule (or <tf|>term) of 20-40 years. A bond is said to 
H05 119 <tf|>mature when the final scheduled debt service payment is made 
H05 120 and the state's obligation to bondholders is discharged. The key 
H05 121 point to note about general or special obligation bonds is that if, 
H05 122 at any time before the maturity date, the state does not make its 
H05 123 regularly scheduled debt service payment (or <tf|>defaults on the 
H05 124 bond), bondholders may have the court enforce the obligation and 
H05 125 require the state to raise taxes to make debt service payments.<p/>
H05 126 <p_>Sections 49 and 50 of the Kentucky Constitution stipulate that, 
H05 127 before the state can issue debt in excess of $500,000, the issuance 
H05 128 must be approved by the majority of voters in a referendum 
H05 129 election. This requirement applies to all state general and limited 
H05 130 obligation bonds, which are issued by the State Treasurer. Kentucky 
H05 131 issued its last bond subject to referendum vote in 1966.<p/>
H05 132 <p_>Section 157 of the Constitution prevents units of local 
H05 133 government from issuing any debt without prior approval of 
H05 134 two-thirds of those voting in a referendum election. Section 158 
H05 135 limits total indebtedness of local governments to various 
H05 136 percentages of the value of taxable property. Section 159 limits 
H05 137 local debt to a term of no more than 40 years. The last Kentucky 
H05 138 local government general obligation bond was issued in 1982.<p/>
H05 139 <p_><tf_>Revenue bonds<tf/> pledge only the particular revenues 
H05 140 generated by a project as collateral on the bonds issued to fund 
H05 141 the project. The traditional use of revenue bonds is for the 
H05 142 provision of government services which generate fees, such as 
H05 143 utilities. Revenue bonds issued for fee-supported government 
H05 144 services are often called <tf_>special revenue bonds,<tf/> to 
H05 145 differentiate them from revenue bonds issued for private purposes. 
H05 146 Government issuance of private-purpose revenue bonds arose 
H05 147 primarily because the interest earnings on bonds issued by state 
H05 148 and local governments (called <tf_>municipal bonds<tf/>) are exempt 
H05 149 from federal taxes and, usually, from the taxes of the state in 
H05 150 which the bonds are issued. This means that lenders will charge a 
H05 151 lower rate of interest for the tax-free bonds than they do for a 
H05 152 bond which carries taxable interest earnings. State and local 
H05 153 governments are able to provide an interest subsidy to local firms 
H05 154 or individuals by issuing a tax-free municipal bond and loaning the 
H05 155 proceeds to the firm or individuals. The loan repayments of the 
H05 156 firm (or individuals) to the issuing government are the only 
H05 157 collateral pledged by the government to secure the bonds. Such 
H05 158 revenue bonds are also known as pass-through or <tf_>conduit 
H05 159 bonds<tf/> because the issuing government merely acts as a 
H05 160 go-between for the private borrower and the lenders. Because of the 
H05 161 limited collateral offered for revenue bonds, they carry a higher 
H05 162 interest cost than general obligation bonds issued by the same 
H05 163 government. However, even that higher cost is usually lower than 
H05 164 the interest cost a private borrower could obtain on a bond with 
H05 165 taxable interest earnings.<p/>
H05 166 <p_>Since 1966, the proceeds of state revenue bonds have also been 
H05 167 used to fund all of the various types of public projects which had 
H05 168 previously been funded through the use of general obligation bonds. 
H05 169 The usual practice is as follows. The state creates an independent 
H05 170 debt-issuing authority, which is defined to be a municipal 
H05 171 corporation of the state, so it can issue tax-exempt bonds, but 
H05 172 which is not defined to be a part of state government, so it is not 
H05 173 subject to the Constitutional restrictions on debt issuance. The 
H05 174 authority issues a revenue bond and uses the proceeds to fund a 
H05 175 public project desired by the state. The authority then leases the 
H05 176 project to the state for an amount equal to that necessary to fund 
H05 177 debt service payments. When the bond is retired, ownership of the 
H05 178 project is transferred to the state. The biennial lease payments of 
H05 179 the state to the authority are the only 'revenue' pledged to secure 
H05 180 the bonds. These bonds are called <tf_>lease rental bonds<tf/>.<p/>
H05 181 <p_>Even though lease rental bonds are issued for public purpose 
H05 182 projects and are supported by appropriations of the General 
H05 183 Assembly, the Kentucky Supreme Court has held that they do not 
H05 184 represent a debt of the Commonwealth and are not, therefore, 
H05 185 subject to the Constitutional restrictions. This is because the 
H05 186 General Assembly is not required to renew a lease with the 
H05 187 independent authority beyond the current biennium. Since future 
H05 188 General Assemblies are in no way legally obligated to make the 
H05 189 lease payments, the lease agreement does not constitute state debt. 
H05 190 (See Chapter II for a more thorough discussion of these legal 
H05 191 issues.)<p/>
H05 192 <p_>The Commonwealth currently has seventeen independent entities 
H05 193 with outstanding state revenue debt, including the eight state 
H05 194 universities. The entities are listed in Figure 2. Figure 3 
H05 195 displays various characteristics of the state debt entities.<p/>
H05 196 <p_>Although the Supreme Court makes no <tf|>legal distinction 
H05 197 between appropriation-supported revenue bonds and 
H05 198 non-appropriation-supported revenue bonds, state officials have 
H05 199 made a clear distinction in oversight of the two kinds of state 
H05 200 debt. According to staff of the Office of Financial Management and 
H05 201 Economic Analysis (OFMEA), except in two special cases, the State 
H05 202 Property and Buildings Commission and the Kentucky Turnpike 
H05 203 Authority issue all state appropriation-supported debt. Both 
H05 204 authorities issue only appropriation-supported debt. As one special 
H05 205 case, state universities issue consolidated education bonds and 
H05 206 housing and dining bonds, which are supported by appropriations 
H05 207 from restricted agency funds derived from university receipts. In 
H05 208 the second special case, the Kentucky Infrastructure Authority 
H05 209 (KIA) issues appropriation-supported bonds for the following 
H05 210 programs:<p/>
H05 211 <p_>Fund A: Federally Assisted Wastewater Revolving Loan Fund<p/>
H05 212 <p_>Fund B: Infrastructure Revolving Loan Fund<p/>
H05 213 <p_>Fund B1: Kentucky Drinking Water Grant Fund<p/>
H05 214 <p_>Fund B2: Kentucky Drinking Water Loan Fund<p/>
H05 215 <p_>Fund E: Solid Waste Revolving Loan Fund<p/>
H05 216 
H06   1 <#FROWN:H06\>Because such research depends on costly and 
H06   2 specialized equipment, funding for ships and associated sampling 
H06   3 tools is a limiting factor (NSB, 1989).<p/>
H06   4 <p_>The importance of marine biodiversity is almost as vast as the 
H06   5 oceans themselves. Much of the Earth's human population depends on 
H06   6 the oceans, especially marine coastal systems, for food. In the 
H06   7 developing nations, more than half of the population obtains at 
H06   8 least 40 percent of its animal protein from fish (WRI, 1986). Some 
H06   9 9,000 species of fish are currently exploited for food, although 
H06  10 only 22 are harvested in significant quantities on a global scale 
H06  11 (WRI, 1987). Approximately 80 percent of the marine species of 
H06  12 commercial importance occur within 200 miles of a coast. Marine 
H06  13 flora and fauna are also extensively used in the production of 
H06  14 antibiotics and other pharmaceuticals, food additives and 
H06  15 processing agents, and a variety of manufactured goods.<p/>
H06  16 <p_>Above and beyond these commodity values, marine organisms are 
H06  17 critical determinants of the structure and function of the global 
H06  18 ecosystem. Marine phytoplankton, for example, are the foundation of 
H06  19 marine food chains and play an important role in atmospheric 
H06  20 dynamics. The interactions among marine biota, the Earth's 
H06  21 geochemical cycles, and global climate change are just coming to 
H06  22 light, and even our most advanced computer models have been able to 
H06  23 offer only the roughest approximations of the feedback mechanisms 
H06  24 involved in the maintenance of biospheric conditions. The study of 
H06  25 marine biodiversity is thus critical to understanding environmental 
H06  26 dynamics on the global, as well as on local and regional, 
H06  27 scales.<p/>
H06  28 <p_>Interest in the conservation of marine biodiversity is a 
H06  29 relatively recent phenomenon. The immensity that makes oceans such 
H06  30 a challenge to study has also made it possible to believe that 
H06  31 anthropogenic disturbances would remain limited in their 
H06  32 environmental impact. Compared to terrestrial environments, oceans 
H06  33 provide relatively stable, extensive, open, well-buffered habitats 
H06  34 for the organisms that inhabit them. Nonetheless, the threats to 
H06  35 marine diversity are much the same as on land: habitat destruction 
H06  36 (especially in coastal, estuarine, wetland, and coral reef 
H06  37 systems); pollution (including suspended sediments, nutrients, and 
H06  38 toxics); overexploitation of harvestable species (including fish, 
H06  39 shellfish, turtles, and mammalian species); and the specter of 
H06  40 global climate change with all its attendant marine impacts 
H06  41 (Soul<*_>e-acute<*/>, 1991; Thorne-Miller and Cantena, 1991).<p/>
H06  42 <p_>Although the biota of oceans has been protected from many of 
H06  43 these impacts by the extent of the medium itself, environmental 
H06  44 stresses can be expected to place the same pressures on marine 
H06  45 systems that they are placing on terrestrial systems. So little is 
H06  46 known about marine biota that rates of extinction are difficult to 
H06  47 estimate. Ray (1988), however, suggests that the degradation of 
H06  48 coastal zones is occurring as rapidly as tropical forest 
H06  49 destruction, and recent findings indicate that coral reefs may be 
H06  50 among those communities most seriously imperiled by human 
H06  51 activities (Salvat, 1987; Guzman, 1991). As in terrestrial systems, 
H06  52 inventories and ecological studies are needed for all oceans, with 
H06  53 special emphasis on those habitats most immediately threatened.<p/>
H06  54 <p_>This brief review does not reflect the full status of 
H06  55 scientific knowledge with regard to specific taxa, geographic 
H06  56 areas, ecosystems, or habitats, and only touches on genetic-level 
H06  57 diversity and the vitally important relationship between ecosystem 
H06  58 dynamics and diversity. As we seek the means to slow or reverse the 
H06  59 losses, we will have to secure increased support for established 
H06  60 scientific efforts in systematics and resource management, and for 
H06  61 relatively new scientific endeavors in such integrative, applied 
H06  62 fields as sustainable agriculture, conservation biology, and 
H06  63 restoration ecology. We face an unprecedented situation that 
H06  64 demands new combinations of the basic and applied sciences, the 
H06  65 expertise of specialists and the vision of generalists, conceptual 
H06  66 clarity as well as concrete experience. The science of biological 
H06  67 diversity and its conservation demands not only more knowledge but 
H06  68 new kinds of knowledge, and new ways of synthesizing what we 
H06  69 know.<p/>
H06  70 <h_><p_>IMPLICATIONS FOR DEVELOPMENT AGENCIES<p/><h/>
H06  71 <p_>Biological diversity reaches its highest levels, and faces its 
H06  72 greatest risks, in the developing nations of the world, primarily 
H06  73 because of intensive resource exploitation and the extensive 
H06  74 alteration of habitats. This is due in part, however, to 
H06  75 international markets, development policies, and lending practices 
H06  76 that transfer financial resources from developing countries to 
H06  77 industrial countries and undermine the capacity of developing 
H06  78 countries to sustainably manage their resources.<p/>
H06  79 <p_>Rapid population growth, extreme and persistent poverty, social 
H06  80 inequity, institutional breakdown, and perverse policy incentives 
H06  81 have brought unstable economic conditions to many developing 
H06  82 nations. In response, many of these countries have had to adopt 
H06  83 short-term development agendas and exploitative resource management 
H06  84 practices aimed at increasing foreign exchange earnings from their 
H06  85 undiversified economies. Trade in elephant ivory (mostly illegal) 
H06  86 and tropical timber (legal) provides obvious examples that have 
H06  87 important consequences for the maintenance of biodiversity, but 
H06  88 other less publicized practices - overgrazing of ranges, expansion 
H06  89 of cash crop agriculture, intensified shifting cultivation - also 
H06  90 lead directly to the demise of species and habitats.<p/>
H06  91 <p_>As a result of these interrelated social, economic, and 
H06  92 environmental trends, many developing countries have begun to 
H06  93 question the sustainability of current resource management 
H06  94 practices and look for more promising alternatives. The policies 
H06  95 and funding practices of international development agencies, if 
H06  96 directed toward wise, long-term commitments of assistance, can aid 
H06  97 in this by affording developing countries greater economic 
H06  98 stability and hence greater national capacity to preserve 
H06  99 biological diversity. In the past, development agencies have funded 
H06 100 infrastructural development activities, agricultural expansion 
H06 101 programs, dams, and other large-scale projects that have 
H06 102 contributed directly to the loss of biological diversity, while 
H06 103 doing little to ease the indirect causes of resource decline (NSB, 
H06 104 1989). A new vision is necessary at all levels of the development 
H06 105 community - one that recognizes the inextricably connected fate of 
H06 106 human communities and the biotic community, of development and 
H06 107 conservation.<p/>
H06 108 <p_>Biological diversity is, in the most literal sense, the basis 
H06 109 of sustainable development and resource management. By conserving 
H06 110 biodiversity, we retain not only plants and animals, soils and 
H06 111 waters, but the foundations of sustainable societies and the 
H06 112 availability of options for future generations. Fuelwood gathering, 
H06 113 to cite just one example, is a significant contributing factor 
H06 114 behind the rising rates of deforestation in many parts of the 
H06 115 tropics. A billion and half people in developing countries depend 
H06 116 on firewood as their major fuel source. In many areas, expanding 
H06 117 demand and declining local supplies have led to excessive harvest 
H06 118 rates, and acute fuelwood shortages, and subsequent decline in soil 
H06 119 and water resources. Developing renewable, cost-effective 
H06 120 alternative energy sources, sustainable agroforestry systems, and 
H06 121 more productive sources of firewood, charcoal, and timber will 
H06 122 require greater attention to potentially useful species and genetic 
H06 123 resources (NRC, 1991a).<p/>
H06 124 <p_>Biodiversity, in short, must come to be seen as an inherently 
H06 125 important aspect of every nation's heritage and as a productive, 
H06 126 sustainable resource upon which we all depend for our present and 
H06 127 future welfare. The conservation of biological diversity is not 
H06 128 merely an obscure, hitherto neglected area of endeavor whose 
H06 129 importance has only now been discovered; rather, it is a 
H06 130 fundamental concern that has been absent in short-term development 
H06 131 planning, at the risk of long-term social and economic 
H06 132 well-being.<p/>
H06 133 <h_><p_>Responding to Research Needs<p/><h/>
H06 134 <p_>In both the developing and the developed nations, immediate 
H06 135 action needs to be taken to protect biodiversity. At the same time, 
H06 136 there is a continuing need for research on biodiversity that 
H06 137 improves our knowledge base and our management capacities, and 
H06 138 leads to the development of new ways for people to live with, and 
H06 139 not at the expense of, their biological resources.<p/>
H06 140 <p_>It is unlikely that poor countries will be able to support 
H06 141 major biodiversity research enterprises, however important, in the 
H06 142 near future. If global environmental and scientific objectives are 
H06 143 to be served, more effective means for north-south transfers of 
H06 144 funding must be found, and more productive mechanisms for 
H06 145 scientific collaboration must be invented (NSB, 1989). The 
H06 146 international development agencies are essential in this regard. 
H06 147 Other organizations are unlikely or unable to provide the necessary 
H06 148 funds. In the long run, this assistance will allow developing 
H06 149 nations to move toward greater independence by strengthening 
H06 150 in-country research institutions. As their research capacity 
H06 151 increases, so too will their ability to chart their own course of 
H06 152 sustainable development.<p/>
H06 153 <p_>As they seek to meet these growing research needs, development 
H06 154 agencies will themselves have to undertake institutional changes. 
H06 155 Research on biological diversity is necessarily broad based and 
H06 156 multidisciplinary, and the administration of research within the 
H06 157 agencies must reflect this. Overlapping areas of biology, including 
H06 158 ecology, sustainable agriculture, and conservation biology, are 
H06 159 critically important in addressing the needs of developing 
H06 160 countries and must be given greater support. More support must also 
H06 161 be given to research that integrates economics, the social 
H06 162 sciences, and biodiversity conservation. Above all, research must 
H06 163 be carried out largely by people in and of the countries 
H06 164 involved.<p/>
H06 165 <p_>Long-term institutional commitment is necessary. Support for 
H06 166 these changes must be incorporated wherever possible into the human 
H06 167 resource development programs of technical assistance agencies. All 
H06 168 personnel should be given training in biodiversity science and 
H06 169 policy. More personnel with the requisite background knowledge must 
H06 170 be brought into the agencies on a permanent basis and given 
H06 171 adequate specific training, as well as opportunities to remain up 
H06 172 to date on research in their fields. Although development and 
H06 173 science agencies can play a leading role in promoting these 
H06 174 efforts, their work must involve agencies, institutions, and 
H06 175 organizations that have not traditionally taken part in 
H06 176 conservation activities. Finally, development agencies must have a 
H06 177 'built-in' capacity to review outcomes, monitor practices, and 
H06 178 recommend adjustments in policies that affect the status of 
H06 179 biological diversity.<p/>
H06 180 <p_>Several development agency research programs have begun to 
H06 181 reflect these needs. The U.S. Agency for International Development, 
H06 182 for example, provides funds for innovative research on biodiversity 
H06 183 under its Program of Scientific and Technical Cooperation (PSTC) 
H06 184 and its Sustainable Agriculture and Natural Resource Management 
H06 185 (SANREM) Collaborative Research Support Program. Support for this 
H06 186 kind of research should be expanded and strengthened. Agencies will 
H06 187 need to find creative ways to sustain funding for these endeavors 
H06 188 over many years, even indefinitely. National biological 
H06 189 inventories, for example, could well be funded by pooling the 
H06 190 resources of all international assistance agencies functioning 
H06 191 within a given country.<p/>
H06 192 <p_>The research agenda outlined in the remainder of this report is 
H06 193 intended to assist development agencies in their efforts to respond 
H06 194 to these research needs. Research cannot, in and of itself, 
H06 195 conserve biodiversity in developing nations any more than it can in 
H06 196 the developed nations. What research can do, however, is provide 
H06 197 the people and the leaders of these nations with information that 
H06 198 may help them to improve their lives, while securing the biological 
H06 199 legacy on which their livelihood depends.<p/>
H06 200 <p_>Biological Aspects Of Conservation<p/>
H06 201 <p_>In the past, national and international development agencies 
H06 202 have seldom relied on - or called for - basic information on 
H06 203 biological diversity. This can no longer be the case. Many 
H06 204 development projects include a significant natural resource 
H06 205 component and thus require sober analysis of their environmental 
H06 206 impacts. More broadly, international agencies and resource and 
H06 207 planning ministries in developing countries need information about 
H06 208 biological diversity to formulate development plans and specific 
H06 209 projects that are both successful and sustainable.<p/>
H06 210 <p_>Pertinent information on biological diversity in most 
H06 211 developing countries is too sparse or scattered to be of practical 
H06 212 use. Often it is unavailable altogether. A good deal of 'gray' 
H06 213 literature exists - unpublished reports, files in government 
H06 214 archives, studies of limited distribution. The most important of 
H06 215 these should be analyzed and made more accessible. In general, 
H06 216 however, the required information can be gathered and disseminated 
H06 217 only through systematic efforts to strengthen the entire research 
H06 218 process.<p/>
H06 219 <p_>Development agencies need to know which kinds of research are 
H06 220 of greatest relevance as they assist client governments and develop 
H06 221 the rationale to secure funding for this research. A large and 
H06 222 growing body of literature describes conservation strategies 
H06 223 appropriate to different species, ecosystems, and regions in 
H06 224 developing countries. This includes journals such as 
H06 225 <tf_>Biotropica, Biological Conservation<tf/>, and 
H06 226 <tf_>Conservation Biology<tf/>. Recent agendas, involving a range 
H06 227 of basic and applied research needs, can be found in <tf_>Research 
H06 228 Priorities in Conservation Biology<tf/> (Soul<*_>e-acute<*/> and 
H06 229 Kohm, 1989); <tf_>From Genes to Ecosystems: A Research Agenda For 
H06 230 Biodiversity<tf/> (Solbrig, 1991); and <tf_>The Sustainable 
H06 231 Biosphere Initiative: An Ecological Research Agenda<tf/> (ESA, 
H06 232 1991). Subsequent chapters of this report focus on the 
H06 233 socioeconomic and cultural aspects of biodiversity research in 
H06 234 developing countries.
H06 235 
H06 236 
H07   1 <#FROWN:H07\><h_><p_>Mission Statement<p/><h/>
H07   2 <p_>The mission of the Metropolitan Water District of Southern 
H07   3 California is to provide its service area with adequate and 
H07   4 reliable supplies of high-quality water to meet present and future 
H07   5 needs in an environmentally and economically responsible way.<p/>
H07   6 <h|>Foreword
H07   7 <p_>Incorporated in 1928, the Metropolitan Water District of 
H07   8 Southern California provides a supplemental water supply for 
H07   9 Southern California's coastal plain. Municipal and industrial 
H07  10 demands account for approximately 92 percent of the water supplied 
H07  11 by Metropolitan with the remaining 8 percent being used for 
H07  12 agricultural purposes and the prevention of seawater intrusion into 
H07  13 coastal groundwater basins. Metropolitan currently supplies more 
H07  14 than half of the water used within its service area, and is 
H07  15 expected to deliver nearly all of the anticipated increase in 
H07  16 future demand.<p/>
H07  17 <p_>Metropolitan's service area encompasses 5,200 square miles, 
H07  18 consisting of 27 member agencies, composed of 14 individual cities, 
H07  19 12 municipal water districts, and a county water authority. This 
H07  20 area extends for about 200 miles along the Pacific Ocean, from 
H07  21 Oxnard to the Mexican border, and inland in some places for about 
H07  22 70 miles into six counties: San Diego, San Bernardino, Riverside, 
H07  23 Orange, Los Angeles, and Ventura. The distribution system utilizes 
H07  24 775 miles of pipeline, five filtration plants, eight reservoirs, 
H07  25 numerous regulating structures, 350 service connections, and 
H07  26 includes 14 hydroelectric power recovery plants. Metropolitan's 
H07  27 member agencies (or their subagencies) subsequently deliver the 
H07  28 water to homes, industries, and agricultural users.<p/>
H07  29 <p_>Water for Southern California is supplied by the State Water 
H07  30 Project, operated by the California Department of Water Resources, 
H07  31 and by the Colorado River Aqueduct, built and operated by 
H07  32 Metropolitan. Water from the State Water Project is transported 
H07  33 from the Sacramento-San Joaquin Delta through the central valley 
H07  34 via the Governor Edmund G. Brown California Aqueduct to Southern 
H07  35 California. It is introduced into Metropolitan's distribution 
H07  36 system through State Water Project's West Branch from Castaic Lake 
H07  37 in the Santa Clarita Valley, and through the State Water Project's 
H07  38 East Branch from Silverwood Lake in the San Bernardino Mountains. 
H07  39 East Branch water flows through several points into the 
H07  40 distribution system: the Rialto Pipeline below Devil Canyon Power 
H07  41 Plant, the Box Springs Feeder Junction Structure, the Perris Bypass 
H07  42 Pipeline, or directly from Lake Perris.<p/>
H07  43 <p_>The Colorado Aqueduct spans 242 miles of desert terrain and 
H07  44 mountain ranges between its Lake Havasu intake and its terminal 
H07  45 reservoir, Lake Mathews, near Riverside. Five pumping plants lift 
H07  46 the Colorado River Water a total of 1,617 feet, taking it over 
H07  47 several mountain ranges and into Metropolitan's service area. 
H07  48 Whitsett Intake Pumping Plant on the western shore of Lake Havasu 
H07  49 lifts water 291 feet to Gene Wash Reservoir located two miles 
H07  50 inland. Gene Pumping Plant raises the water an additional 303 feet 
H07  51 to Copper Basin Reservoir, the aqueduct's major flow control point. 
H07  52 The water then flows by gravity approximately 63 miles to the Iron 
H07  53 Mountain Pumping Plant where it is elevated 144 feet through the 
H07  54 Iron Mountains. After flowing another 45 miles, the water reaches 
H07  55 Eagle Mountain Pumping Plant where it is lifted 438 feet. Following 
H07  56 a 16-mile gravity flow, the water arrives at the Julian Hinds 
H07  57 Pumping Plant. This final lift of 441 feet brings the water to an 
H07  58 elevation of 1,807 feet, adequate for flow by gravity the remaining 
H07  59 116 miles to Lake Mathews. Completed in 1941, the Colorado River 
H07  60 Aqueduct was designed to accommodate an eight-pump flow of 1,605 
H07  61 cubic feet per second (cfs), but will convey flows 15 percent 
H07  62 higher due to the massive pump rehabilitation project which was 
H07  63 designed to ensure dependable delivery of Metropolitan's allocation 
H07  64 of 487,000 acre-feet, as well as more than 800,000 acre-feet of 
H07  65 surplus Colorado River water, when available.<p/>
H07  66 <p_>The Colorado River Aqueduct Pump Rehabilitation Project 
H07  67 resulted from a 1985 evaluation of the pumping units which had been 
H07  68 installed as part of the original Colorado River Aqueduct 
H07  69 construction. The evaluation revealed that the pumping units were 
H07  70 nearing the end of their useful life and needed to be 
H07  71 rehabilitated. The rehabilitation project started in 1988; work was 
H07  72 divided into phases and completion is scheduled for 1993. This 
H07  73 project is distinct from normal operating requirements and 
H07  74 maintenance schedules.<p/>
H07  75 <h_><p_>Organization<p/>
H07  76 <p_>Office of General Manager<p/><h/>
H07  77 <p_>The General Manager's Department has the responsibility for 
H07  78 planning, directing, and managing Metropolitan's overall 
H07  79 operations. For fiscal year 1991-92 the objectives were:<p/>
H07  80 <p_><*_>bullet<*/> To make the most efficient use of Metropolitan's 
H07  81 existing facilities.<p/>
H07  82 <p_><*_>bullet<*/> To expand Metropolitan's water distribution 
H07  83 system capacity.<p/>
H07  84 <p_><*_>bullet<*/> To continue the program of upgrading existing 
H07  85 facilities to maintain reliability and enhance service 
H07  86 capability.<p/>
H07  87 <p_><*_>bullet<*/> To pursue opportunities to increase dependable 
H07  88 water supplies.<p/>
H07  89 <p_><*_>bullet<*/> To encourage conservation and formulate programs 
H07  90 to reduce demands on Metropolitan's system.<p/>
H07  91 <p_><*_>bullet<*/> To intensify programs to meet regulations in the 
H07  92 areas of drinking water, wastewater, air quality, hazardous 
H07  93 materials, and waste.<p/>
H07  94 <p_><*_>bullet<*/> To continue automation of Metropolitan's 
H07  95 activities (purchasing, accounting, maintenance, project 
H07  96 management) to increase staff efficiency and effectiveness.<p/>
H07  97 <p_><*_>bullet<*/> To enhance Metropolitan's employee development 
H07  98 and Equal Employment Opportunity programs.<p/>
H07  99 <p_><*_>bullet<*/> To continue legislative monitoring at both the 
H07 100 State and Federal level.<p/>
H07 101 <h_><p_>Legal Department<p/><h/>
H07 102 <p_>Metropolitan's legal staff represents Metropolitan, its Board 
H07 103 of Directors, officers, and occasionally employees, in litigation 
H07 104 and administrative proceedings. The staff provides the Board of 
H07 105 Directors and Metropolitan's officers with legal advice and written 
H07 106 opinions, and reviews contracts and other documents. Additionally, 
H07 107 staff members follow litigation and administrative proceedings to 
H07 108 which Metropolitan is not a party, but whose outcome could affect 
H07 109 Metropolitan or the resources on which it depends. By closely 
H07 110 monitoring State legislative proposals, staff recommends positions 
H07 111 Metropolitan should take, if any.<p/>
H07 112 <h_><p_>Internal Audit<p/><h/>
H07 113 <p_>Metropolitan's Audit Department performs internal auditing 
H07 114 activities consisting of financial, compliance, and computer 
H07 115 audits, as well as miscellaneous reviews or special audits. The 
H07 116 Auditor reports directly to the Board of Directors through its 
H07 117 Special Audit Committee. He works closely with Metropolitan's 
H07 118 staff, but is independent of general management.<p/>
H07 119 <p_>Internal audit assignments are usually selected by the Auditor 
H07 120 and are occasionally requested by Metropolitan's Board of Directors 
H07 121 or management. Proposed Audit Department work activities are 
H07 122 reflected in the Audit Work Plan submitted to all directors through 
H07 123 the Special Audit Committee at the beginning of each fiscal year. 
H07 124 The Audit Work Plan is modified as necessary throughout the year 
H07 125 based on actual experience, new priorities, or other circumstances. 
H07 126 The Auditor also prepares a written activity report each month for 
H07 127 the Board of Directors<&|>sic! information.<p/>
H07 128 <p_>Detailed audit testing is preceded by appropriate planning and 
H07 129 coordination with management or staff. When significant audit 
H07 130 assignments are completed, all directors receive the report to the 
H07 131 Special Audit Committee, with copies provided to management. In 
H07 132 accordance with internal auditing standards, the typical audit 
H07 133 report outlines the objectives and scope of the work performed, the 
H07 134 audit findings noted, and any recommendations for corrections or 
H07 135 improvements which the Auditor feels are warranted under the 
H07 136 circumstances. In addition to internal audit assignments, the 
H07 137 Auditor and his staff provide substantial assistance to 
H07 138 Metropolitan's external auditors in conducting quarterly financial 
H07 139 audits and the year-end audit required by the California Government 
H07 140 Code and Metropolitan bond covenants.<p/>
H07 141 <h|>Preface
H07 142 <p_>Fiscal year 1991-92 opened with a gloomy water supply picture 
H07 143 for Southern California as it faced a sixth year of drought. On 
H07 144 September 30, the end of a water year, storage in the State's major 
H07 145 reservoirs was only 58 percent of average, the lowest level since 
H07 146 1977's severe drought. Sacramento river runoff, a major source for 
H07 147 the State Water Project and usual provider of about half of the 
H07 148 water Metropolitan delivers, was only 46 percent of normal. 
H07 149 Colorado River basin supplies, which usually provide the other half 
H07 150 of the water Metropolitan delivers, were only slightly better, 
H07 151 ranging from 63 to 75 percent of normal. To cope with dwindling 
H07 152 supplies and increasing demands, Metropolitan provided input to 
H07 153 proposed plans for better management of Federal and State water 
H07 154 supplies; moved forward with its plans to construct Southern 
H07 155 California's largest reservoir; and accelerated its efforts to 
H07 156 encourage water management and conservation, and to construct new 
H07 157 and rehabilitate existing facilities for greater efficiency.<p/>
H07 158 <p_>As the Federal government considered reforms to the operation 
H07 159 of the federal Central Valley Project, Metropolitan's board of 
H07 160 Directors adopted a series of provisions to be pursued for 
H07 161 inclusion in any Central Valley Project reform legislation. The 
H07 162 general principles to be promoted involved water transfers; fish 
H07 163 and wildlife improvements, including water metering and changes in 
H07 164 water pricing; appropriate Federal actions to pursue needed 
H07 165 facilities; and other provisions consistent with Metropolitan's 
H07 166 mission to provide <quote_>"adequate and reliable supplies of high 
H07 167 quality water to meet present and future needs in an 
H07 168 environmentally and economically responsible way"<quote/>. At the 
H07 169 State level, providing input to Governor Pete Wilson's Water Policy 
H07 170 Task Force, Metropolitan urged that the State formulate a balanced 
H07 171 water policy, stressing the need for developing significant new 
H07 172 supplies through a combination of improved facilities and water 
H07 173 transfers.<p/>
H07 174 <p_>Innovative was the key word for many of Metropolitan's programs 
H07 175 during the fiscal year. With approval of a landmark pact, forged by 
H07 176 the State's major urban water suppliers and environmental 
H07 177 organizations, Metropolitan helped set an industry standard for 
H07 178 urban water conservation practices throughout California. Detailing 
H07 179 16 specific conservation measures, also known as 'best management 
H07 180 practices', the agreement helps assure a more dependable water 
H07 181 supply by providing justifiable water savings. To secure additional 
H07 182 water supplies, Metropolitan's Board of Directors adopted a 
H07 183 far-reaching policy statement regarding the future development of 
H07 184 voluntary water transfers, primarily from agricultural water users. 
H07 185 Transfer activities would be accomplished through conservation, 
H07 186 conjunctive use, water management programs and selective land 
H07 187 fallowing, and would be designed to avoid contributing to or 
H07 188 creating long-term groundwater overdraft conditions. The activities 
H07 189 appropriately address potential third-party impacts in a manner 
H07 190 that protects and enhances the state's environmental resources. An 
H07 191 historic two-year experimental program will demonstrate the 
H07 192 potential of fallowing California farmland near the Colorado River 
H07 193 and making the saved water available to urban Southern California. 
H07 194 The program's agreement marked the first time urban and 
H07 195 agricultural water interests and Colorado River water rights 
H07 196 holders have joined forces in a land-fallowing program.<p/>
H07 197 <p_>Locally, Metropolitan launched an inventive pilot program that 
H07 198 combines the goals of water conservation with community action. The 
H07 199 program in East Los Angeles will create new jobs for community 
H07 200 members who will be trained to install ultra-low-flush toilets in 
H07 201 local residences and who will also receive instruction in sales and 
H07 202 personal development.<p/>
H07 203 <p_>Domenigoni Valley was selected as the site for an 
H07 204 800,000-acre-foot reservoir, the largest in Southern California - 
H07 205 completion of which will nearly double Southern California's water 
H07 206 storage capacity. The proposed 4,410-acre lake is critical to 
H07 207 long-range planning, prudent water management practices, and 
H07 208 assurance that an adequate supply of water will be available. It 
H07 209 will also provide the Hemet and San Jacinto areas with increased 
H07 210 tourism, a stronger economy, and one of the largest and most 
H07 211 pristine public recreation areas in California.<p/>
H07 212 <p_>Reservoir construction will be accomplished in an 
H07 213 environmentally sensitive manner through creation of one of the 
H07 214 first multi-species preservation and mitigation banking areas in 
H07 215 the nation. Joining lands purchased in the Santa Rosa Plateau and 
H07 216 lands already maintained as a reserve by the Nature Conservancy, 
H07 217 dedication of the 3,000-acre Shipley Reserve brought the 
H07 218 multi-species habitat to nearly 16,000 contiguous acres.<p/>
H07 219 <p_>Metropolitan's concern for the environment extended to actively 
H07 220 joining efforts to alleviate air pollution in the Los Angeles area 
H07 221 by acquiring ten clean-burning, methanol-fueled automobiles and 
H07 222 including a program of preventing and containing chemical spill 
H07 223 hazards as part of a major capital improvement program. The 
H07 224 chemical containment program essentially will eliminate the risk of 
H07 225 accidental chemical contamination at Metropolitan's filtration, 
H07 226 pumping and hydroelectric power plants, reservoirs and maintenance 
H07 227 areas where chemicals are stored and handled.<p/>
H07 228 <p_>Anticipating rigid new drinking water quality standards under 
H07 229 the Safe Drinking Water Act, Metropolitan began testing a new 
H07 230 treatment process at its Oxidation Demonstration Project on the 
H07 231 grounds of the F.E. Weymouth Filtration Plant. The demonstration 
H07 232 facility allows Metropolitan to test the performance of ozone and 
H07 233 PEROXONE (a combination of hydrogen peroxide an ozone) at a scale 
H07 234 that closely resembles actual use. Until the plants' completion, 
H07 235 Metropolitan had studied ozone and PEROXONE use in small-scale 
H07 236 treatment tests to reduce disinfection by-product levels, eliminate 
H07 237 disease-causing water-borne microorganisms, and control undesirable 
H07 238 taste and odor.<p/>
H07 239 <p_>Hoping to make desalination a more viable option for 
H07 240 supplementing existing water supplies, Metropolitan's Board of 
H07 241 Directors authorized the first planning and development phase of a 
H07 242 seawater desalination demonstration project which will include 
H07 243 construction of a 2,000 gallon-per-day test unit at a coastal power 
H07 244 plant site.
H07 245 
H08   1 <#FROWN:H08\><h_><p_>Terrorism: Efforts Toward International 
H08   2 Solutions<p/>
H08   3 <p_>A. Peter Burleigh, Coordinator for Counter-Terrorism<p/>
H08   4 <p_>Address before the 1992 Worldwide Anti-terrorism Conference, 
H08   5 Fort Leavenworth, Kansas, June 23, 1992<p/><h/>
H08   6 <p_>I appreciate the opportunity to address this important 
H08   7 conference. I'd like to describe some recent noteworthy 
H08   8 developments in our efforts to counter the threat of international 
H08   9 terrorism.<p/>
H08  10 <p_>Despite the extraordinary and positive changes in the world in 
H08  11 the last 2 years and despite an evolving international consensus to 
H08  12 oppose terrorism, the problem is still very much with us. In fact, 
H08  13 last year there was a sharp increase in the number of international 
H08  14 terrorist incidents, although the number of deaths and injuries 
H08  15 declined. The increase reflected the large number of generally 
H08  16 small-scale incidents that occurred during the Gulf war. There were 
H08  17 no terrorist spectaculars resulting in large loss of life in 1991. 
H08  18 However, in 1992, we have seen the most spectacular terrorist 
H08  19 attack in 3 years: the bombing of the Israeli Embassy in Buenos 
H08  20 Aires. This brutal bombing killed about 2 dozen people and left 200 
H08  21 injured.<p/>
H08  22 <p_>Although the number of international terrorist incidents seems 
H08  23 to be on a downward trend so far this year, the number of deaths 
H08  24 and injuries has increased. There have also been a number of 
H08  25 serious attacks by domestic terrorist groups in Spain, Peru, 
H08  26 Turkey, and other countries.<p/>
H08  27 <p_>It is shocking to note that almost all of the American citizens 
H08  28 who died in terrorist attacks during the past 2 years had some 
H08  29 connection to the US military - either on active duty or under 
H08  30 contract to the Defense Department. They died in Panama, the 
H08  31 Philippines, El Salvador, Turkey, and Greece. Two weeks ago, one US 
H08  32 serviceman was killed by gunfire and a second soldier wounded in an 
H08  33 ambush in Panama in advance of the President's visit.<p/>
H08  34 <h_><p_>The Gulf War<p/><h/>
H08  35 <p_>One of the most important developments of the last year was the 
H08  36 success of the coalition and the international community in 
H08  37 trumping Saddam Hussein's terrorist 'ace in the hole.' I think it 
H08  38 is clear that Saddam Hussein believed terrorism would be a 
H08  39 strategic weapon in deterring the coalition and undermining support 
H08  40 for the effort to liberate Kuwait. Iraq trained terrorists and 
H08  41 Iraqi intelligence operatives and dispersed them to locations 
H08  42 around the world in preparation for the 'mother of all battles.' In 
H08  43 the months following the invasion of Kuwait, and especially during 
H08  44 Operation Desert Storm, Saddam Hussein called publicly and 
H08  45 repeatedly for terrorist attacks against coalition targets. But 
H08  46 these attacks for the most part did not materialize.<p/>
H08  47 <p_>As many of you here know well, it was no accident that there 
H08  48 were no major successful terrorist attacks. It was the result of 
H08  49 unprecedented and largely unheralded cooperation among security and 
H08  50 law enforcement services around the world - including Europe, 
H08  51 Eastern Europe, and the Arab world - that stifled the Iraqi 
H08  52 terrorist threat. This cooperation involved the sharing of 
H08  53 intelligence information, expulsion of Iraqi diplomats and agents, 
H08  54 preemptive arrests, and enhanced security countermeasures. Those 
H08  55 attacks that did take place were largely sporadic and uncoordinated 
H08  56 acts of indigenous groups acting in sympathy with Saddam Hussein or 
H08  57 exploiting the Gulf war as a pretext to commit terrorism.<p/>
H08  58 <p_>While we can be proud of our successes, we must remember that 
H08  59 the Iraqi terrorist threat, while currently suppressed, is likely 
H08  60 to re-emerge if international sanctions are loosened and Iraq is 
H08  61 allowed to rebuild its diplomatic and intelligence operations.<p/>
H08  62 <h_><p_>End to East Bloc Support<p/><h/>
H08  63 <p_>Another new element has been the astonishing changes that have 
H08  64 occurred in the former Soviet Union and former Soviet bloc. We note 
H08  65 with great interest the recent reports from Moscow of documents 
H08  66 containing evidence that the former Soviet Government supported 
H08  67 groups that engaged in terrorism against Western interests. It is 
H08  68 too early to discuss broad conclusions about the extent of the 
H08  69 former Soviet Union's responsibility for international terrorism, 
H08  70 but these fragmentary reports are disturbing.<p/>
H08  71 <p_>The demise of the communist governments has obviously deprived 
H08  72 terrorist groups of material support, sanctuary, and safehaven from 
H08  73 which to operate, arms, financing, and front companies and other 
H08  74 infrastructure. Also important, it deprived them of the Leninist 
H08  75 ethos of all-justifying revolutionary violence. In some circles, 
H08  76 this had lent appeal and an aura of respectability to leftwing 
H08  77 terrorist groups.<p/>
H08  78 <p_>At the same time, the disintegrations of the Soviet Union and 
H08  79 now Yugoslavia has unleashed long-contained ethnic, religious, and 
H08  80 territorial rivalries. While these, regrettably, have claimed a 
H08  81 great number of lives and caused widespread suffering, they do not 
H08  82 appear to have spilled over into international terrorist incidents. 
H08  83 Nevertheless, it is a sobering reminder, today, that Sarajevo, site 
H08  84 of one of the most momentous terrorist incidents in history, is 
H08  85 again the scene of bloodshed.<p/>
H08  86 <h_><p_>State-Supported Terrorism<p/><h/>
H08  87 <p_>While Iraq was unable to incite a terrorist offensive against 
H08  88 the coalition, and despite welcome changes in the former communist 
H08  89 bloc, there remain states that have been and remain willing to 
H08  90 employ terrorism as an instrument of state policy.<p/>
H08  91 <p_>As many of you know, the United States maintains a list of 
H08  92 countries that support terrorism. There are six countries on that 
H08  93 list: Cuba, Iran, Iraq, Libya, North Korea, and Syria.<p/>
H08  94 <p_>Iraq, today, is in a state of enforced quiescence. Libya, as I 
H08  95 will discuss in greater detail shortly, is under great pressure to 
H08  96 comply with the UN resolutions requiring it to hand over suspects 
H08  97 in the Pan Am [Flight] 103 bombing, cooperate with French 
H08  98 authorities' investigation into the bombing of UTA Flight 772, and 
H08  99 cease its support for terrorism. Libya continues to provide support 
H08 100 and facilities for a number of terrorist groups, including the Abu 
H08 101 Nidal Organization [ANO], the Popular Front for the Liberation of 
H08 102 Palestine-General Command, and the Palestine Liberation Front.<p/>
H08 103 <p_>Iran, regrettably, continues to sponsor terrorism in an effort 
H08 104 to intimidate governments and individuals around the world. An 
H08 105 Iranian-sponsored group, <tf_>Islamic Jihad<tf/>, has claimed 
H08 106 responsibility for the bombing of the Israeli Embassy in Buenos 
H08 107 Aires, and it produced videotaped footage of the embassy taken 
H08 108 prior to the bombing in order to authenticate its claim.<p/>
H08 109 <p_>Iran continues to assassinate dissidents abroad. Four Iranian 
H08 110 agents are under arrest for the murder of former Iranian Premier 
H08 111 Minister Shapur Bakhtiar in Paris last year.<p/>
H08 112 <p_>Iran has also refused to rescind the <tf|>fatwa, or religious 
H08 113 decree, calling for the murder of author Salman Rushdie because of 
H08 114 his book, <tf_>The Satanic Verses<tf/>. This seems a particularly 
H08 115 perverse and Orwellian <}_><-|>from<+|>form<}/> of terrorism - 
H08 116 international thought crime, bearing a sentence of death. In 
H08 117 addition, attacks on translators of Rushdie's books in Italy and 
H08 118 Japan are believed to be linked to their work.<p/>
H08 119 <p_>Iran also continues to provide material and financial 
H08 120 assistance to terrorist groups throughout the world. Last year, 
H08 121 Iran finally helped arrange for the freeing of Western hostages 
H08 122 held in Lebanon. The last two, both German citizens, were freed 
H08 123 last week. We have recognized Iran's role in this, and it was an 
H08 124 important step. As the President said, it has removed an enormous 
H08 125 obstacle to a more normal relationship with Iran. Serious problems 
H08 126 remain, however.<p/>
H08 127 <p_><tf|>Hezbollah elements in Lebanon that are fighting Israeli 
H08 128 troops are continuously resupplied by the Government of Iran by 
H08 129 flights to Damascus. Syria then permits these supplies to travel 
H08 130 overland by truck.<p/>
H08 131 <p_><tf_>Islamic Jihad<tf/> also claimed responsibility for an 
H08 132 attack in Ankara, Turkey, that killed the Israeli Embassy's top 
H08 133 security officer. This attack followed by a few days a handgrenade 
H08 134 attack in front of the Neve Shalom Synagogue in Istanbul for which 
H08 135 <tf|>Hezbollah is suspected.<p/>
H08 136 <p_>Tehran must recognize that only by abandoning state sponsorship 
H08 137 of terrorism can it expect to re-enter the international community. 
H08 138 The Iranians are not acting as if they have understood this basic 
H08 139 message. We need to work with other states to drive it home in 
H08 140 every way possible.<p/>
H08 141 <p_>Syria is not known to have sponsored any international 
H08 142 terrorist attacks outside Lebanon since 1987, and most of the 
H08 143 groups it supports have been relatively quiet since Syria joined 
H08 144 the allied coalition in the war with Iraq. However, Syria continues 
H08 145 to provide support and safehaven to a number of groups that engage 
H08 146 in international terrorism, and, for that reason, it remains on the 
H08 147 US Government list of state sponsors.<p/>
H08 148 <p_>A number of terrorist attacks, particularly against Israel, 
H08 149 have been attributed to groups based in Syria and in 
H08 150 Syrian-controlled areas of Lebanon. Groups enjoying Syrian support 
H08 151 and sanctuary include <tf|>Hezbollah, Palestinian <tf_>Islamic 
H08 152 Jihad<tf/>, and the ANO. Two non-Arab groups that receive Syrian 
H08 153 support - the PKK and Dev Sol - are very active in Turkey. The PKK, 
H08 154 or Kurdish Workers' Party, has kidnapped Western hostages, 
H08 155 including Americans. The virulently anti-US group Dev Sol murdered 
H08 156 two DOD [Department of Defense]-associated Americans in Turkey last 
H08 157 year. Another non-Arab group supported by Syria is the Japanese Red 
H08 158 Army, which has attacked the US military. It is responsible for the 
H08 159 1988 car bombing of a USO [United Services Organization] club in 
H08 160 Naples that killed an American servicewoman and injured four US 
H08 161 servicemen.<p/>
H08 162 <p_>Syrian efforts over the past few years to reign in terrorists 
H08 163 under its control represent a half step. It has yet to sever its 
H08 164 relationships with these groups and shut down their training 
H08 165 camps.<p/>
H08 166 <h_><p_>Other Trends<p/><h/>
H08 167 <p_>I'd like to also touch briefly on two other issues. One is what 
H08 168 you might call the growing 'reach' of terrorists today. During the 
H08 169 Gulf war, Iraqi agents attempted unsuccessful attacks in Indonesia, 
H08 170 Thailand, and the Philippines, far from the traditional areas of 
H08 171 operation in the Middle Eastern terrorist groups. The bombing of 
H08 172 the Israeli Embassy in Buenos Aires is the latest, tragic example 
H08 173 of what may be a new strategy of seeking targets in traditionally 
H08 174 low-threat areas of the world, where security may be less vigilant 
H08 175 and local security forces may have little experience with the 
H08 176 international terrorist threat.<p/>
H08 177 <p_>I would also like to mention the threat of narco-terrorism. 
H08 178 This is not a new problem. In recent years, we have seen the 
H08 179 emergence both of narcotics traffickers who employ terrorism 
H08 180 against the state, and particularly its judicial system, to further 
H08 181 their own criminal goals. Many of you will recall the terrible 
H08 182 violence that struck Colombia in 1989, including the bombing of a 
H08 183 civilian airliner and the assassinations of judges, journalists, 
H08 184 police officials, and politicians.<p/>
H08 185 <p_>We have also seen more political insurgent and terrorist groups 
H08 186 - for example, the Shining Path in Peru - turn to narcotics 
H08 187 trafficking as an easy way to generate more income to support their 
H08 188 terrorist and military activities.<p/>
H08 189 <p_>We must continue to closely monitor this phenomenon, especially 
H08 190 as terrorist groups feel the effects of the cutoff in funding from 
H08 191 the former East bloc countries and reduced assistance from Cuba. In 
H08 192 Latin America and the Middle East especially, there are many areas 
H08 193 that are both major and traditional narcotics production areas and 
H08 194 operating areas for terrorist groups.<p/>
H08 195 <h_><p_>US Policy<p/><h/>
H08 196 <p_>I would like to turn now to the US counter-terrorism policy. 
H08 197 Our policy is based on three tenets:<p/>
H08 198 <p_><*_>bullet<*/> No concessions to terrorists;<p/>
H08 199 <p_><*_>bullet<*/> Pressure on states to cease support for 
H08 200 terrorism; and<p/>
H08 201 <p_><*_>bullet<*/> Cooperation with other governments to impose the 
H08 202 rule of law on terrorists. This involves practical measures to help 
H08 203 us identify, apprehend, and prosecute terrorists.<p/>
H08 204 <p_>I believe that over the past year this policy has produced some 
H08 205 significant successes in our fight against terrorism.<p/>
H08 206 <p_><tf_>No Deals.<tf/> The United States maintains a policy of 
H08 207 refusing to make concessions to terrorists. This means that we will 
H08 208 not pay ransom, release convicted terrorists, or pressure other 
H08 209 countries to give in to terrorist demands. No group should believe 
H08 210 that it can blackmail the United States. There will be no rewards 
H08 211 for terrorism.<p/>
H08 212 <p_>This aspect of our policy was damaged by the Iran-<tf|>contra 
H08 213 affair, but we saw it succeed in the unconditional release, last 
H08 214 year, of all the remaining US hostages in Lebanon. As President 
H08 215 Bush stated last week in the wake of the release of the two 
H08 216 remaining German hostages from captivity, the 'no deals' policy, 
H08 217 which had encountered some rough water along the way, has been 
H08 218 vindicated by results. We are very well aware of the terrible, 
H08 219 wrenching pressure that terrorists can bring to bear, especially on 
H08 220 humane, democratic governments that value the lives of their 
H08 221 citizens. But we believe this policy is the only correct one.<p/>
H08 222 
H09   1 <#FROWN:H09\><p_>By Mr. BIDEN (for himself and Mr. 
H09   2 <tf|>DeConcini):<p/>
H09   3 <p_>S. 618. A bill to control and reduce violent crime; to the 
H09   4 Committee on the Judiciary.<p/>
H09   5 <p_>VIOLENT CRIME CONTROL ACT OF 1991<p/>
H09   6 <p_>Mr. BIDEN. Mr. President, I rise today to introduce the Violent 
H09   7 Crime Control Act of 1991, the most comprehensive anticrime 
H09   8 initiative I have ever proposed. It is my belief that this 
H09   9 legislation would make tremendous strides toward restoring safety 
H09  10 and sanity to our Nation's dangerous streets.<p/>
H09  11 <p_>America needs a crime bill and it can have one in 100 days. But 
H09  12 it must be a crime bill that is tougher than the one the President 
H09  13 proposed yesterday, in at least two important respects:<p/>
H09  14 <p_>First, it must ban the killer assault weapons used by 
H09  15 drug-dealers and terrorists.<p/>
H09  16 <p_>Second, it must do more to add new police officers to the front 
H09  17 lines of the war on crime.<p/>
H09  18 <p_>If anyone doubts that such action is needed, I urge them to 
H09  19 take a look at a report that the Judiciary Committee majority staff 
H09  20 is releasing today.<p/>
H09  21 <p_>This report, entitled 'Fighting Crime in America: An Agenda for 
H09  22 the 1990's,' contains new data that illustrates how horrible the 
H09  23 crime problem has become.<p/>
H09  24 <p_>Among the report's findings:<p/>
H09  25 <p_>The year 1990 set a national record for murders, a national 
H09  26 record for rapes, a national record for assaults. Last year's 
H09  27 increase in murder and rape was the largest 1-year jump in more 
H09  28 than a decade. And every American - every American - is four times 
H09  29 more likely to be victimized by a violent crime today than he or 
H09  30 she was in 1960. The fact is this: more Americans were killed on 
H09  31 our streets over the past 8 weeks than were killed by enemy 
H09  32 soldiers during Operation Desert Storm.<p/>
H09  33 <p_>Yet if the report we are releasing today contains some 
H09  34 depressing, stark facts, it also contains some rather simple - but 
H09  35 important - solutions for meeting this crisis.<p/>
H09  36 <p_>And these solutions form the core of the legislation I am 
H09  37 proposing today: a bill, I am proud to say, that was endorsed last 
H09  38 month by my colleagues in the Senate Democratic Conference.<p/>
H09  39 <p_>Before I discuss our bill, I want to say a few things about the 
H09  40 President's 100 days.<p/>
H09  41 <p_>I have little doubt that Congress can pass a crime bill in 100 
H09  42 days. In fact, we could have passed a crime bill last year had the 
H09  43 special interests in the gun lobby not worked to stall, delay, and 
H09  44 ultimately kill the bill because of its ban on deadly assault 
H09  45 weapons.<p/>
H09  46 <p_>Simply put: If the President would join the Congress in banning 
H09  47 the murderous weapons that are killing police officers, children 
H09  48 and countless of innocent bystanders, we could easily pass a crime 
H09  49 bill within the next 100 days.<p/>
H09  50 <p_>The report we are releasing today makes clear what America must 
H09  51 do to end its rapidly rising crime rates:<p/>
H09  52 <p_>First, we must get the people who commit crimes out of the 
H09  53 community, and we must punish them severely for their actions;<p/>
H09  54 <p_>Second, we must stop people from committing crimes before they 
H09  55 happen; and<p/>
H09  56 <p_>Third, we must get the deadly weapons off the streets.<p/>
H09  57 <p_>On the first of these goals, our bill has little difference 
H09  58 from the President. We disagree not in what the President proposes 
H09  59 - but what he opposes - not in what he includes but in what he 
H09  60 excludes.<p/>
H09  61 <p_>Like the President's bill, our bill:<p/>
H09  62 <p_>Imposes the death penalty for the largest number of offenses in 
H09  63 U.S. history - indeed, our bill covers even more capital offenses 
H09  64 than does the President's.<p/>
H09  65 <p_>It extends the death penalty for drug killers, terrorists, and 
H09  66 the murderers of law enforcement officers.<p/>
H09  67 <p_>It shortens the appeals process for capital offenders.<p/>
H09  68 <p_>And, it increases penalties for criminals who commit gun 
H09  69 offenses.<p/>
H09  70 <p_>We have no disagreement with the President over whether we must 
H09  71 punish criminals severely. On this point, both proposals are in 
H09  72 agreement. Our differences with the President start with the second 
H09  73 goal, the question of whether more must be done to prevent crimes 
H09  74 in the first place.<p/>
H09  75 <p_>Here, we think that much more must be done - not just to punish 
H09  76 criminals - but also to make our streets safer from mayhem in the 
H09  77 first place.<p/>
H09  78 <p_>On this point, the findings of our new staff report are worth 
H09  79 noting. It shows:<p/>
H09  80 <p_>In 1950, America had three police officers per violent crime. 
H09  81 Yet today, the ratio is just the reverse - three violent crimes per 
H09  82 officer.<p/>
H09  83 <p_>After 18 months of the administration's war on drugs, the 
H09  84 number of police officers on our streets today is only 1 percent 
H09  85 higher than it was when the President's effort was launched.<p/>
H09  86 <p_>And the administration's 1992 budget actually proposes a cut in 
H09  87 Federal aid sent to local law enforcement agencies.<p/>
H09  88 <p_>Our streets are unsafe because our police forces are 
H09  89 undermanned and overwhelmed. They can never be safe again until we 
H09  90 reverse this imbalance.<p/>
H09  91 <p_>That's why our bill, unlike the President's, includes funding 
H09  92 for thousands of new police officers, FBI agents, DEA agents, and 
H09  93 other law enforcement officers. We don't want to just punish 
H09  94 murderers, we want to prevent murders.<p/>
H09  95 <p_>And it's why our bill includes three new initiatives that the 
H09  96 President's plan ignores: a comprehensive new program to combat 
H09  97 juvenile gangs; more help for rural areas that are suffering rising 
H09  98 crime rates, and emergency aid to the places hardest hit by 
H09  99 drugs.<p/>
H09 100 <p_>And it is why we are pushing an important initiative called the 
H09 101 Violence Against Women Act, which would tackle the escalating 
H09 102 problems of rape, domestic violence, and sexual assault.<p/>
H09 103 <p_>The Violence Against Women Act, along with Senator 
H09 104 <tf|>DeConcini's motorcycle gang bill are further aspects of our 
H09 105 anticrime agenda that are not adequately addressed by the 
H09 106 President's plan.<p/>
H09 107 <p_>Finally, and again, unlike the President's bill, our bill 
H09 108 addresses a third goal of any substantial crime legislation; 
H09 109 getting killer assault weapons off the streets.<p/>
H09 110 <p_>Our bill includes the so-called <tf|>DeConcini amendment, a 
H09 111 measure adopted by the Senate last year to ban the manufacture and 
H09 112 sale of 14 deadly assault weapons.<p/>
H09 113 <p_>These guns are the weapons of choice for drug dealers and 
H09 114 international terrorists. They have no legitimate purpose and they 
H09 115 must be controlled before they kill any more of our law-abiding 
H09 116 citizens.<p/>
H09 117 <p_>Unfortunately, the President's bill is silent in this respect. 
H09 118 Instead of controlling assault weapons, the President proposes to 
H09 119 increase the penalties on those who use such guns to commit 
H09 120 crimes.<p/>
H09 121 <p_>Mr. President, I say this in response: We agree that gun 
H09 122 criminals should face stiffer punishments, but we also think that 
H09 123 we should get the most deadly weapons off the streets before they 
H09 124 are used to kill or maim anyone else.<p/>
H09 125 <p_>In sum: The President wants to punish crime - and so do we - 
H09 126 but we also want to do more to prevent crime, and make our cities 
H09 127 and towns safer for all Americans.<p/>
H09 128 <p_>Can the Congress meet the challenge to pass a crime bill in 100 
H09 129 days? I am convinced that if the President works with us, this 
H09 130 ambitious goal can be achieved.<p/>
H09 131 <p_>But for this goal to be a meaningful one, the crime bill we 
H09 132 pass must be a meaningful one. Our goal should not be to pass just 
H09 133 any crime bill within 100 days, but rather, to enact a 
H09 134 comprehensive, valuable piece of crime-fighting legislation in that 
H09 135 period.<p/>
H09 136 <p_>To achieve that end, the President must help us in two ways: 
H09 137 First, he must prevent his allies in the gun lobby from blocking 
H09 138 this bill, and indeed, he should join us in coming up with an 
H09 139 agreeable proposal to limit these weapons; and second, he must work 
H09 140 with us putting aside the rhetoric of partisanship on crime to 
H09 141 reach an accord on a hill that we can all support.<p/>
H09 142 <p_>None of us here in Congress or at the White House, Republican 
H09 143 or Democrat - can afford to wait any longer to start to tackle this 
H09 144 crisis.<p/>
H09 145 <p_>Hopefully, if we all work together, we can make progress to 
H09 146 combat death and violent aggression on this home front as swiftly 
H09 147 and decisively as we achieved this same end in the gulf.<p/>
H09 148 <p_>I urge my colleagues to review our new majority staff report 
H09 149 and join me in supporting the Violent Crime Control Act.<p/>
H09 150 <p_>I ask unanimous consent that the full text of my bill, along 
H09 151 with a side-by-side comparison of it to the President's bill, and 
H09 152 some summary materials, be printed in the <tf|>Record.<p/>
H09 153 <p_>Mr. President, I rise today to introduce a voluminous piece of 
H09 154 legislation, but I think an important one - I hope my colleagues 
H09 155 see it that way - the Violent Crime Control Act of 1991. This is 
H09 156 the most comprehensive anticrime initiative I have ever introduced 
H09 157 in the 18 years I have been here, and it is my belief that this 
H09 158 legislation would make tremendous strides toward restoring safety 
H09 159 and sanity to our Nation's streets and neighborhoods.<p/>
H09 160 <p_>Mr. President, before I say my little piece here, let me point 
H09 161 out that the President announced yesterday that violent crime is 
H09 162 going to be his No. 1 domestic initiative. I hope that doesn't mean 
H09 163 we are going to back off on the fight against drugs. The President 
H09 164 laid out a crime bill, a crime bill all of which we passed last 
H09 165 year here in the Senate. It ultimately failed because of a 
H09 166 Presidential threat of a veto because we in the Senate included a 
H09 167 provision eliminating 14 assault-style weapons - the so-called 
H09 168 <tf|>DeConcini bill.<p/>
H09 169 <p_>Mr. President, I want to say at the outset about the death 
H09 170 penalty that I do not think many of us in here - I know the Senator 
H09 171 from Florida, because he knows so much about this area and has 
H09 172 worked so hard in it so long when he was a Governor and since he 
H09 173 has been here - disagree. Few of us disagree - at least I do not, 
H09 174 nor does the Senator from Florida - on reinstating the death 
H09 175 penalty.<p/>
H09 176 <p_>Our bill last year provided for the death penalty. And the bill 
H09 177 this year provides for a <}_><-|>dealth<+|>death<}/> penalty - 
H09 178 total of 44 offenses for which you can receive death as the 
H09 179 penalty. That is more than what the President is proposing.<p/>
H09 180 <p_>There is also a proposal the President has to change the habeas 
H09 181 corpus law. The Senator, as an attorney and former attorney 
H09 182 general, knows full well what that means. It means that there are 
H09 183 people who have been put on death row, and who are filing frivolous 
H09 184 and successive petitions that are taking up the courts' time and 
H09 185 everyone's time.<p/>
H09 186 <p_>But we can change habeas corpus tomorrow, and it will have no 
H09 187 effect on the crime rate; zero. Those folks on death row are not 
H09 188 shooting people. Yet, if you listen to some of my colleagues talk, 
H09 189 they will tell you: <quote_>"If we get the death penalty and we get 
H09 190 a change in the habeas corpus, well, we will change the world. Our 
H09 191 streets will be safer."<quote/><p/>
H09 192 <p_>Now, I support the death penalty. I am going to try to pass it 
H09 193 again through this legislation. We passed it here in the Senate, 
H09 194 and passed it in the House, and we are going to pass it again. That 
H09 195 is not a big problem.<p/>
H09 196 <p_>But with the Federal death penalty, Mr. President, if you add 
H09 197 up all the potential people who will be put to death and convicted 
H09 198 for all the crimes we include, you are not talking about more than 
H09 199 a dozen folks a year. Heck, there are far more murders right here 
H09 200 in the city of Washington. We are not talking about a lot of 
H09 201 people.<p/>
H09 202 <p_>The point I wanted to make is this: It is not what the 
H09 203 President has proposed in his legislation that I oppose; it is what 
H09 204 he does not propose. We will change the habeas corpus law to 
H09 205 provide for only one appeal, one bite out of the apple. We have 
H09 206 some disagreement among ourselves and with the President over the 
H09 207 nuances. We will settle that. And we will pass a death penalty.<p/>
H09 208 <p_>As I said, I spoke to a group of attorneys general this morning 
H09 209 - and you spoke to them just prior to my speaking to them, Mr. 
H09 210 President - Republicans and Democrats alike.
H09 211 
H10   1 <#FROWN:H10\>Women have the right <}_><-|><+|>to<}/> be informed of 
H10   2 the risks, potential ramifications, and benefits related to urine 
H10   3 screening toxicology.<p/>
H10   4 <h_><p_>Recommendation #32<p/><h/>
H10   5 <p_>The Michigan Department of Social Services and the Michigan 
H10   6 Department of Public Health should review the Child Protective 
H10   7 Services policies regarding child abuse and neglect in relation to 
H10   8 substance use among parent(s). Policies should be revised where 
H10   9 indicated to foster family preservation as the goal of all 
H10  10 programs, that is to keep families together with appropriate 
H10  11 support services where possible.<p/>
H10  12 <h_><p_>Recommendation #33<p/><h/>
H10  13 <p_>Prosecutors should include in their policies the referral of 
H10  14 substance-using pregnant women into substance abuse treatment 
H10  15 programs and prenatal care. The Department of Public Health should 
H10  16 enlist the assistance of advocacy groups and private organizations 
H10  17 to support local prosecutors in the development and implementation 
H10  18 of policies on the non-punitive approach to pregnant, 
H10  19 substance-using women and their referral into substance abuse and 
H10  20 prenatal care. The statement submitted to the Task Force by Wayne 
H10  21 County Prosecutor John O'Hair in support of the non-prosecution of 
H10  22 substance-using pregnant women should be accepted as a stellar 
H10  23 example for local prosecutors.<p/>
H10  24 <h_><p_>Recommendation #34<p/><h/>
H10  25 <p_>Widely publicize written policies of treatment and education as 
H10  26 an alternative to criminal prosecution for substance-using pregnant 
H10  27 women.<p/>
H10  28 <h_><p_>Recommendation #35<p/><h/>
H10  29 <p_>Increase public information targeting the male role and 
H10  30 responsibility in reducing fetal exposure to alcohol, tobacco, and 
H10  31 other drugs and in promoting positive pregnancy outcomes.<p/>
H10  32 <h_><p_>Recommendation #36<p/><h/>
H10  33 <p_>All state legislation, regulations and programs should consider 
H10  34 the culturally relevant lifestyle issues of substance-using 
H10  35 women.<p/>
H10  36 <h_><p_>Recommendation #37<p/><h/>
H10  37 <p_>All state legislation and regulations should support smoke-free 
H10  38 treatment environments, i.e., Clean Air Act. The Michigan 
H10  39 Department of Public Health should develop a protocol for smoking 
H10  40 cessation that may be used with pregnant women. Substance abuse 
H10  41 treatment facilities should offer smoke-free environments.<p/>
H10  42 <h_><p_>Health Services<p/><h/>
H10  43 <p_>The use of ATOD (alcohol, tobacco and other drugs) during 
H10  44 pregnancy can have detrimental effects both non-specific and highly 
H10  45 specific on perinatal outcome. Non-specific effects include fetal 
H10  46 growth retardation, resulting in low birth weight infants and 
H10  47 infants with small head circumference. Specific effects include 
H10  48 facial, skeletal and organ system abnormalities. Women using drugs 
H10  49 during pregnancy are also at increased risk for preterm labor and 
H10  50 <foreign_>abruptio placenta<foreign/> thereby placing an already 
H10  51 compromised fetus at increased risk. The number of mothers who are 
H10  52 HIV infected from sharing needles and practicing unsafe sex is 
H10  53 increasing at an alarming rate.<p/>
H10  54 <p_>Definitive information does not exist about the long-term 
H10  55 effects of drug use during pregnancy. Researchers have reported 
H10  56 that some infants who were prenatally exposed to cocaine have 
H10  57 suffered from stroke or hemorrhage in the areas of the brain 
H10  58 responsible for intellectual capabilities; and there is a 
H10  59 substantial body of information available which describes the 
H10  60 harmful effects of alcohol and tobacco use on the developing fetus. 
H10  61 In-utero exposure to alcohol, tobacco and other drugs is associated 
H10  62 with an increased rate among newborns of (1) low birthweight, with 
H10  63 small for gestational age length and head circumference, (2) 
H10  64 central nervous system damage that may delay or impair 
H10  65 neurobehavorial development, (3) mild to severe withdrawal effects, 
H10  66 and (4) certain congenital physical malformations. Researchers have 
H10  67 also stated that follow-up studies of these children indicate that 
H10  68 the vast majority of them reach developmentally appropriate 
H10  69 milestones by 36 months.<p/>
H10  70 <p_>Prenatal care can help or at least ameliorate many of the 
H10  71 problems and costs associated with the births of prenatally-exposed 
H10  72 infants. Through three basic components of prenatal care: (1) early 
H10  73 and continued risk assessment, (2) health promotion, and (3) 
H10  74 health/medical and psychosocial interventions and follow-up, the 
H10  75 chances of an unhealthy infant are greatly reduced. Comprehensive 
H10  76 residential and intensive outpatient substance abuse treatment that 
H10  77 includes prenatal and other health services for women, such as 
H10  78 gynecological, HIV counseling and testing, etc. is the best 
H10  79 approach to helping women to stop using drugs during pregnancy and 
H10  80 providing the developing infant with the best chance of being born 
H10  81 healthy.<p/>
H10  82 <p_>In addition to prenatal care, the earliest opportunity for 
H10  83 intervention is the provision of reproductive health services. 
H10  84 Reproductive health services should be made available to all 
H10  85 substance-using women of childbearing age in Michigan. These 
H10  86 services would include teaching abstinence and family planning as 
H10  87 well as providing pre- and post-conceptional counseling. In 
H10  88 addition it is widely accepted and documented by pregnancy and 
H10  89 sexually-transmitted disease (STD) data that adolescents are 
H10  90 negatively impacted by early sexual activity and that the most 
H10  91 reliable method of preventing pregnancy and STDs is abstinence. 
H10  92 Abstinence-based strategies, therefore, should receive adequate 
H10  93 funding.<p/>
H10  94 <h_><p_>Recommendation #38<p/><h/>
H10  95 <p_>Reproductive health services should be made a Basic Health 
H10  96 Service (teaching abstinence, family planning methods, pre- and 
H10  97 post-conceptional counseling.) Abortion counseling is not 
H10  98 included.<p/>
H10  99 <h_><p_>Recommendation #39<p/><h/>
H10 100 <p_>Develop protocols for use and dissemination of reproductive 
H10 101 health services information to substance-using women to be used by 
H10 102 all appropriate programs.<p/>
H10 103 <h_><p_>Recommendation #40<p/><h/>
H10 104 <p_>Increase statewide access to health care for substance-using 
H10 105 pregnant women through provision of education, training and 
H10 106 incentives to providers to serve this population.<p/>
H10 107 <h_><p_>Administrative Recommendations<p/>
H10 108 <p_>Education and Training<p/><h/>
H10 109 <p_>A recurring theme in discussing substance abuse treatment is 
H10 110 the importance of well-trained and committed professionals to lead 
H10 111 substance abuse programs and to provide direct care. Unfortunately, 
H10 112 more often than not, drug treatment services, as well as other 
H10 113 services which should be linked with them, are frequently staffed 
H10 114 by inadequately trained individuals who are poorly paid and given 
H10 115 little on-going support. It is often the least skilled and trained 
H10 116 individuals who are given the tasks of managing the state's most 
H10 117 serious problems in health and human services.<p/>
H10 118 <p_>It is imperative that persons caring for substance-using women 
H10 119 and pregnant women clearly understand and address all aspects of 
H10 120 the complex psychosocial, medical, gender, legal and ethical issues 
H10 121 involved, so that the best possible care and positive outcomes can 
H10 122 be provided for the woman, her infant and family.<p/>
H10 123 <h_><p_>Recommendation #41<p/><h/>
H10 124 <p_>State funding should be made available to sponsor on-going 
H10 125 training to professionals who provide care to substance-using 
H10 126 women. Training should include information on assessment, 
H10 127 culturally-relevant lifestyle issues and the influence/impact drug 
H10 128 usage may have on women (e.g., issues of sexuality and hormonal 
H10 129 surge). State funding should be made available to substance abuse 
H10 130 programs to assist with planning, implementation and evaluation.<p/>
H10 131 <h_><p_>Recommendation #42<p/><h/>
H10 132 <p_>Curricula for physicians, nurses and social workers and others 
H10 133 concerned with maternal and child health issues should include 
H10 134 gender specific issues including behavioral manifestations of 
H10 135 exposures to environmental stress, and sexual abuse and stress. 
H10 136 Topics should include post-traumatic stress syndrome, depression, 
H10 137 incest, rape, co-dependency, drug use, child abuse, and domestic 
H10 138 violence.<p/>
H10 139 <h|>Evaluation
H10 140 <p_>Research and evaluation is needed on the results for various 
H10 141 approaches of treating alcohol, tobacco, and other drug use among 
H10 142 parents and families, and especially among pregnant women and women 
H10 143 with young children. This requires, among other things, greater 
H10 144 clarity among goals of treatment and careful definition of the 
H10 145 markers of success.<p/>
H10 146 <p_>In Michigan, few resources have been devoted to evaluating 
H10 147 programs for substance-using women. There is little qualitative or 
H10 148 quantitative data to support the objectives of the state's 
H10 149 programs. What works? How can we replicate? What should be 
H10 150 replicated? How can we prevent, treat and address the myriad of 
H10 151 problems associated with and the impact of perinatal substance use 
H10 152 on women, their children and families in our state?<p/>
H10 153 <p_>Many experts believe that the most cost-effective approach is a 
H10 154 comprehensive continuum of care model program that includes 
H10 155 specially trained staff; provision of physical, social, medical, 
H10 156 educational, childcare, and vocational services; and the 
H10 157 involvement of the family in therapy. The conclusion is that more 
H10 158 programs tailored to meet the unique requirements of women are 
H10 159 needed. More research is also needed regarding treatment 
H10 160 effectiveness, as well as the etiology of alcohol and drug abuse. 
H10 161 To this end, the government (federal, state and local) must play a 
H10 162 major role in funding longitudinal and multi-site studies.<p/>
H10 163 <h_><p_>Recommendation #43<p/><h/>
H10 164 <p_>The Michigan Department of Public Health should develop 
H10 165 guidelines for cost-effectiveness, process and outcome-based 
H10 166 evaluations of women- and family-specific substance abuse treatment 
H10 167 and prevention programs. The guidelines should be reviewed and 
H10 168 endorsed by appropriate state, local and educational 
H10 169 institutions.<p/>
H10 170 <h_><p_>Recommendation #44<p/><h/>
H10 171 <p_>Guidelines and training should be made available to assure that 
H10 172 program evaluators understand the need for culture and gender 
H10 173 specific program designs and service delivery methods.<p/>
H10 174 <h_><p_>Recommendation #45<p/><h/>
H10 175 <p_>The Michigan Department of Public Health should disseminate 
H10 176 information about effective alcohol and other drug treatment 
H10 177 programs for women.<p/>
H10 178 <p_><O_>Exhibit<O/><p/>
H10 179 <h_><p_>Early Childhood Development<p/>
H10 180 <p_>Introduction<p/>
H10 181 <p_>Charge to the Committee<p/><h/>
H10 182 <p_>The Early Childhood Development Committee of the Governor's 
H10 183 Task Force on Drug-Exposed Infants originally described its task as 
H10 184 <quote_>"the careful consideration of, and the formulation of 
H10 185 recommendations for the population of children between the ages of 
H10 186 0 and six years who have been prenatally exposed to drugs, or 
H10 187 exposed to drugs in the environment."<quote/> This approach, 
H10 188 however, posed at least one major problem to committee members: 
H10 189 many, and probably most, prenatally drug-exposed infants will not 
H10 190 be detected using current screening mechanisms. Correspondingly, 
H10 191 many children who were not prenatally drug-exposed are in need of 
H10 192 services. Therefore, the committee expanded its charge to include 
H10 193 all infants in need of intervention, with special emphasis placed 
H10 194 on the identification of and intervention with those infants known 
H10 195 to have been prenatally drug-exposed.<p/>
H10 196 <h_><p_>Statement of the Problem<p/><h/>
H10 197 <p_>The issue addressed by the Governor's Task Force on 
H10 198 Drug-Exposed Infants is the syndrome of problems sustained by 
H10 199 infants as a consequence of maternal drug use during pregnancy. The 
H10 200 Governor's Office has charged this Task Force with the 
H10 201 responsibility of generating recommendations which will prevent and 
H10 202 ameliorate these problems, as well as to recommend effective 
H10 203 interventions for those children sustaining developmental 
H10 204 disabilities as a consequence of such exposure.<p/>
H10 205 <p_>A difficult problem the Early Childhood Development Committee 
H10 206 had to confront was the reality that - short of intensive and 
H10 207 unrealistically expensive (and often intrusive) screening 
H10 208 techniques - many drug-exposed newborns will go undetected. A 1989 
H10 209 study indicates that hospitals assessing every pregnant woman and 
H10 210 newborn infant through rigorous detection procedures had an 
H10 211 incidence rate of drug-exposed infants three to five times greater 
H10 212 than hospitals utilizing more customary, less rigorous screening 
H10 213 techniques. (Chasnoff, 1989)<p/>
H10 214 <p_>Further, it became clear that there may be many drug-exposed 
H10 215 infants who for one reason or another may not have sustained any 
H10 216 early detectable negative consequences. Factors which may have a 
H10 217 bearing on detectable infant health problems attributable to 
H10 218 prenatal drug exposure include amount and duration of exposure, 
H10 219 drug/s of choice, nutrition, access to health care systems, 
H10 220 prenatal care and overall maternal health. A review of the 
H10 221 literature indicated abundant reports on the occurrence of 
H10 222 developmental delays and/or disabilities in this population. Ramer, 
H10 223 et al, revealed significantly smaller-sized fetuses in mothers 
H10 224 known to be heroin-addicted (1975), even when controlling for 
H10 225 prenatal care and nutrition. Babies born to methadone addicts were 
H10 226 found to have normal birthweights, but greater postnatal weight 
H10 227 loss due to hyperactivity and sleep disturbances (Householder, 
H10 228 1982). Neonatal drug withdrawal symptoms were noted in neonates of 
H10 229 heroin- and methadone-addicted mothers, with symptoms mainly 
H10 230 involving the central nervous and gastrointestinal systems. Such 
H10 231 symptoms included irritability, increased muscle tone, shrill 
H10 232 crying, inability to sleep, and hyperactive deep tendon reflexes. 
H10 233 <quote_>"Uncoordinated and ineffective sucking and swallowing 
H10 234 reflexes, non-nutritive sucking, vomiting, diarrhea and progressive 
H10 235 weight loss were also noticed."<quote/> (Dinges, 1980).<p/>
H10 236 <p_>Infants born to opiate addicts were found to be <quote_>"highly 
H10 237 energetic, talkative, and easily distracted, with brief attention 
H10 238 spans"<quote/> (Hutchings, 1982). Disturbances also included 
H10 239 immature object manipulation; and cognitive, speech, and perceptual 
H10 240 difficulties. The frustrating nature of these difficulties to the 
H10 241 drug-addicted mother and other family members may also place the 
H10 242 infant at high risk for child abuse (Bauman et al, 1986).<p/>
H10 243 <p_>Bauman and Levine (1986) found that children of 
H10 244 methadone-maintained mothers had a higher incidence of adverse 
H10 245 behavior such as yelling, whining, teasing, and physical abuse of 
H10 246 other children as compared with children of non-addicted mothers, 
H10 247 which they postulate may contribute to impairment. The same study 
H10 248 found that both the mothers and the children had lower intelligence 
H10 249 quotient scores when compared to children and their non-addicted 
H10 250 mothers; and that children of addicted mothers had a lower ability 
H10 251 to learn and to adapt to new situations. However, they found no 
H10 252 significant differences in the gross motor skills of these two 
H10 253 populations of children.<p/>
H10 254 <p_>Mayes, Granger, et. al. (1992), warn about the potential 
H10 255 dangers of arriving at premature conclusions about the severity and 
H10 256 universality of cocaine effects, which they caution <quote_>"are in 
H10 257 themselves potentially harmful to children."<quote/>
H10 258 
H11   1 <#FROWN:H11\>This is unfortunate, given that such expenditures 
H11   2 often have very high rates of return. For instance, the expected 
H11   3 return to efficient nonwage O&M in the irrigation sector in 
H11   4 Indonesia in the mid-1980s is estimated at 117 percent in Java and 
H11   5 90 percent off Java. A Bank report found that in the transport 
H11   6 sector, specific road improvements have an estimated return of 13 
H11   7 rupiahs for each rupiah spent. These high economic returns often 
H11   8 justify a higher priority for expansion of maintenance expenditures 
H11   9 than for outlays for new construction in a number of countries. 
H11  10 Unfortunately, increases in nonwage O&M do not yield the political 
H11  11 dividends that new and visible capital investments do. Nor do 
H11  12 declines in their allocations have the same political costs as a 
H11  13 retrenchment in civil service employment, erosion of real salaries, 
H11  14 or elimination of subsidies. This expenditure category has thus 
H11  15 been cut along with capital investment, but unlike capital 
H11  16 investments, its starting point was unsatisfactorily low to begin 
H11  17 with (Heller 1977 and 1982).<p/>
H11  18 <p_>While countries exhibit pervasive difficulties in this area, 
H11  19 there are a few instances of progress. In Ghana, spending on 
H11  20 nonwage goods and services more than tripled in real terms from 
H11  21 1984 to 1989. Much of this increase has focused on health, 
H11  22 education, and agriculture, with allocations guided by newly 
H11  23 established government norms. The Bank actively facilitated this 
H11  24 process, through advice, technical assistance, and associated 
H11  25 conditionality in adjustment loans. In several cases - Bangladesh, 
H11  26 Indonesia, and Papua New Guinea, for example - the Bank has 
H11  27 encouraged the adoption of nonwage O&M strategies for such sectors 
H11  28 as roads, education, health, and agriculture. In Indonesia, road 
H11  29 maintenance was a problem for several years, but nonwage O&M 
H11  30 spending has recently been increased to more adequate levels.<p/>
H11  31 <p_>Most cases are less positive. In a set of country briefs on 
H11  32 adjustment lending countries in Sub-Saharan Africa, Bank staff 
H11  33 cited inadequate nonwage O&M as a key problem in the allocation of 
H11  34 public expenditures in seventeen of nineteen countries. Several 
H11  35 countries (Benin, Togo) had falling levels and shares of nonwage 
H11  36 O&M (SPA Working Group 1991). Some countries have experienced a 
H11  37 collapse of effective service delivery - schools without teaching 
H11  38 materials, health clinics without drugs and supplies, and 
H11  39 rehabilitated roads once again becoming impassable because of the 
H11  40 absence of subsequent maintenance. Inadequate nonwage O&M 
H11  41 expenditure has also brought about an alarming deterioration of 
H11  42 infrastructure assets, imposing high economic costs for road 
H11  43 transport. Country reports are replete with evidence on declining 
H11  44 allocations for nonwage O&M, the worsening wage-nonwage balance, 
H11  45 and the undesirable implications for the efficiency of government 
H11  46 infrastructure and services (box 3.4).<p/>
H11  47 <p_>The Bank's attention to nonwage O&M issues in adjustment 
H11  48 lending is relatively recent. Conditions on nonwage O&M feature in 
H11  49 only 8 percent of adjustment loans during 1979-85, increasing to 14 
H11  50 percent in 1986-88 and then leaping to about one-third in 1989-90. 
H11  51 Greater emphasis has been placed on the adequacy on nonwage O&M 
H11  52 allocations in key sectors. Examples include allocating sufficient 
H11  53 funds for routine road maintenance for 1989-91 in Chad (Transport 
H11  54 Sector Loan 1989); making adequate nonwage O&M budget allocations 
H11  55 for irrigation, transport, and power in Nepal (1989); and 
H11  56 increasing allocations on nonwage expenditures for road 
H11  57 maintenance, agriculture, education, and health in Cameroon 
H11  58 (1989-92). But even more emphasis needs to be placed on the 
H11  59 adequacy of nonwage O&M for critical economic and social sector 
H11  60 programs. Conditionality can constitute a good mechanism for 
H11  61 bridging the deviation between economic benefits and political 
H11  62 indifference in this area.<p/>
H11  63 <p_><tf_>Subsidies and other current tansfers.<tf/> Subsidies and 
H11  64 other current transfers include all unrequited, nonrepayable 
H11  65 government payments for current purposes. For fifteen intensive 
H11  66 adjustment lending countries (data were incomplete for Bolivia), 
H11  67 average spending under this category fell from 6.4 percent of GDP 
H11  68 in the first half of the 1980s to 5.7 percent in the second half. 
H11  69 All countries in this group except Pakistan registered a decline. 
H11  70 As a share of total expenditure net of interest payments, average 
H11  71 expenditure on subsidies and other current transfers fell from 31.9 
H11  72 percent in the first half of the adjustment decade to 28.8 percent 
H11  73 in the second half. In four countries in the sample (Korea, 
H11  74 Pakistan, Thailand, and Uruguay), the budgetary share increased in 
H11  75 the second half of the 1980s.<p/>
H11  76 <p_>Bank involvement has focused on subsidies for key commodities 
H11  77 and on transfers to public enterprises. Many adjustment loans have 
H11  78 included conditions to cut subsidies - almost half the loans during 
H11  79 1979-85 and only slightly less than that in recent years. Many 
H11  80 conditions have focused on reducing or eliminating subsidies on 
H11  81 agricultural commodities and inputs, principally fertilizers. 
H11  82 Examples include eliminating subsidies for rice, wheat flour, and 
H11  83 fertilizers in Sri Lanka (Economic Reconstruction Credit, 1990), 
H11  84 reducing fertilizer subsidies by 15 percent in Ghana (SALII, 1989), 
H11  85 and reducing the ratio of budgetary subsidies to GDP during 1990-91 
H11  86 in Mozambique (Economic Recovery Program, 1989). Further work in 
H11  87 this area needs to distinguish between types of subsidies 
H11  88 (generalized or targeted, production or consumption) and 
H11  89 alternative reforms supported by the Bank (such as elimination or 
H11  90 better targeting). For instance, in Venezuela's SAL and Jamaica's 
H11  91 Social Sector Development Project, sharp reductions in general 
H11  92 subsidies in the context of the adjustment program were accompanied 
H11  93 by targeted interventions to protect the poor.<p/>
H11  94 <p_><O_>caption&box<O/><p/>
H11  95 <h_><p_>Changes in the functional composition of spending<p/><h/>
H11  96 <p_>Expenditure shifts, in tandem with cuts, are critical for 
H11  97 improving economic performance and the quality of life. For 
H11  98 instance, rechanneling resources from nonproductive uses to social 
H11  99 sectors can enhance human capital for sustainable and equitable 
H11 100 growth and shield the poor during fiscal adjustment. For 
H11 101 twenty-four developing countries, Hicks (1991) analyzed expenditure 
H11 102 reductions during 1970-84 and concluded that governments facing 
H11 103 tough expenditure choices preserve present welfare and security 
H11 104 interests at the expense of longer-term capital investment and thus 
H11 105 long-term economic growth. Hicks found that during this period 
H11 106 social sectors and defense were relatively protected (elasticities 
H11 107 of these expenditures relative to total expenditure were less than 
H11 108 one), while economic infrastructure spending bore a larger burden 
H11 109 of the fiscal adjustments. The evidence for social and economic 
H11 110 infrastructure during adjustment is broadly consistent with these 
H11 111 findings (table 3.3). In addition, government expenditure on 
H11 112 industry and mining fell during adjustment in intensive adjustment 
H11 113 lending countries, suggesting a desirable reduction of the role of 
H11 114 the state in areas where the private sector has a comparative 
H11 115 advantage.<p/>
H11 116 <p_><tf_>Economic infrastructure spending.<tf/> Both intensive 
H11 117 adjustment lending and non-adjustment lending countries cut the 
H11 118 share in GDP of expenditure on transport and communication (a proxy 
H11 119 for economic infrastructure spending) during the 1980s. A 
H11 120 comparison of pre- and postadjustment trends in each country shows 
H11 121 that economic infrastructure spending declined in eleven intensive 
H11 122 adjustment lending countries and increased in four. On average, 
H11 123 spending declined by 25 percentage points during the postadjustment 
H11 124 period. There is also evidence that in both the intensive 
H11 125 adjustment lending and the non-adjustment lending groups, the 
H11 126 budgetary share fell. The intensive adjustment lending countries, 
H11 127 however, cut spending less, on average, than the non-adjustment 
H11 128 lending countries.<p/>
H11 129 <p_>Although economic infrastructure expenditures in general have a 
H11 130 high proportion of capital expenditures, the fall in economic 
H11 131 infrastructure spending also reflects the decline in the materials, 
H11 132 supplies, and maintenance part of the nonwage O&M budget. This 
H11 133 decline has led to a deterioration of economic infrastructure in 
H11 134 many countries, most notably roads (see section on nonwage 
H11 135 operations and maintenance above).<p/>
H11 136 <p_><tf_>Social sector spending.<tf/> Some critics of Bank- and 
H11 137 Fund-supported adjustment programs, including UNICEF, argue that 
H11 138 these programs have imposed fiscal austerity that has compressed 
H11 139 government spending on social services, particularly health and 
H11 140 education (Cornia, Jolly, and Stewart 1987). A breakdown of 
H11 141 government spending by function does not support this hypothesis 
H11 142 (table 3.3). There is no perceptible change in the ratio of central 
H11 143 government expenditure on education and health to GDP in both 
H11 144 intensive adjustment lending and non-adjustment lending countries 
H11 145 from the first half of the 1980s to the second half. But there is 
H11 146 evidence that the share of health and education in total public 
H11 147 expenditures increased slightly. The share of these expenditures in 
H11 148 government expenditure net of interest payments for the 16 
H11 149 intensive adjustment lending countries increased marginally - from 
H11 150 23.5 percent in the first half of the 1980s to 25.1 percent in the 
H11 151 second half. During the same period, the non-adjustment lending 
H11 152 countries increased the share of health and education in total 
H11 153 expenditures net of interest from 20.4 to 22.8 percent. Social 
H11 154 expenditures include more than health and education, but we focus 
H11 155 on these two categories because they are the most commonly 
H11 156 important.<p/>
H11 157 <p_>Real per capita social spending also indicates the social 
H11 158 impact of adjustment lending. This measure gives an indication of 
H11 159 the real level of social services that countries provide. Real 
H11 160 social sector spending per capita on education and health by 
H11 161 central governments increased in the late 1980s in over 60 percent 
H11 162 of intensive adjustment lending countries but in only 42 percent of 
H11 163 non-adjustment lending countries. Among the low-income intensive 
H11 164 adjustment lending countries in the sample, real per capita 
H11 165 spending on education and health increased in Ghana, Kenya, and 
H11 166 Pakistan and declined in Bolivia and Malawi in the postadjustment 
H11 167 period. Moreover, the average increase in intensive adjustment 
H11 168 lending countries was greater than that in non-adjustment lending 
H11 169 countries in the sample (table 3.4).<p/>
H11 170 <p_>Interpretation of the aggregate evidence requires caution, 
H11 171 however. The indicators of social spending presented in tables 3.3 
H11 172 and 3.4 do not support the hypothesis that government expenditures 
H11 173 in health and education subsectors declined under Bank-supported 
H11 174 adjustment programs. Beyond this, any meaningful assertion about 
H11 175 the social cost of adjustment or the effect of stabilization 
H11 176 programs on the poor requires a more detailed examination of 
H11 177 primary-level expenditures and efficiency (better delivery, 
H11 178 targeting, and cost recovery) in the social sectors. Expenditures 
H11 179 on primary and secondary education and on preventive health usually 
H11 180 have high returns and are central to increasing the productivity 
H11 181 and welfare of the poor. The problem is that cross-country data on 
H11 182 social sector expenditures generally are not sufficiently 
H11 183 disaggregated to address these questions.<p/>
H11 184 <p_><O_>captions&tables<O/><p/>
H11 185 <p_>An examination of individual country experiences suggests that 
H11 186 even though social sector expenditures may have been protected, 
H11 187 complacency is unwarranted. A few countries (for example, Chile, 
H11 188 Ghana, and Indonesia) have increased the relative share of 
H11 189 aggregate social sector expenditures as well as expenditures on 
H11 190 basic social services. In Ghana, the share of aggregate social 
H11 191 sector expenditures as well as that of primary education increased 
H11 192 - as a percentage of GDP and of total expenditures - in real terms 
H11 193 during the adjustment. A range of social indicators improved during 
H11 194 the adjustment period. In Indonesia, when expenditures were being 
H11 195 reduced between 1982 and 1987, expenditure shares of 
H11 196 poverty-related sectors - social sectors, agriculture, and 
H11 197 transfers to local governments for basic social services - were 
H11 198 increasing and large-scale capital investments in industry and 
H11 199 mining were deferred. In Chile, while the real level and shares of 
H11 200 education and health expenditures dropped, the private sector 
H11 201 expanded its role at the tertiary level. In addition, there were 
H11 202 increased allocations for primary education and improved targeting 
H11 203 in primary health care and nutrition programs, which permitted 
H11 204 continued progress in social indicators. Chile was thus able to 
H11 205 protect targeted and poverty-oriented expenditures despite fiscal 
H11 206 austerity.<p/>
H11 207 <p_>In some intensive adjustment lending countries, however, there 
H11 208 have been cutbacks in the levels and shares of social sector 
H11 209 expenditures during periods of austerity. Even when total social 
H11 210 expenditures have been protected, important intrasectoral 
H11 211 imbalances remained or got worse. Resources were concentrated at 
H11 212 tertiary levels, while allocations for basic social services 
H11 213 declined, despite poor social indicators. There were shortages of 
H11 214 critical complementary inputs, such as basic drugs, textbooks, and 
H11 215 supplies, while overstaffing continued (for instance, the 
H11 216 experience of Brazil - box 3.5). Similar problems can be seen in 
H11 217 many other intensive adjustment lending countries (box 3.6).<p/>
H11 218 <p_>On balance, restructuring social expenditures in favor of 
H11 219 primary education and health services and safety nets offers 
H11 220 substantial scope both for mitigating the costs of adjustment for 
H11 221 the poor and for improving their human capital and earning 
H11 222 potential in the long run. But such restructuring usually requires 
H11 223 sustained political will to reduce the allocation of social 
H11 224 expenditures for such items as universities and city hospitals that 
H11 225 benefit principally better-off segments of society.<p/>
H11 226 <p_>The role of the Bank's adjustment lending in restructuring 
H11 227 public expenditures to enhance efficiency and reduce poverty has 
H11 228 been limited, but it has received more attention in recent years in 
H11 229 the context of a renewed emphasis on poverty alleviation.
H11 230 
H12   1 <#FROWN:H12\><h_><p_>(3) National Defense Authorization Act for 
H12   2 Fiscal Years 1992 and 1993<p/>
H12   3 <p_>Partial text of Public Law 102-190 [H.R. 2100], 105 Stat. 1290, 
H12   4 approved December 5, 1991<p/><h/>
H12   5 <p_>AN ACT To authorize appropriations for fiscal years 1992 and 
H12   6 1993 for military activities of the Department of Defense, for 
H12   7 military construction, and for defense activities of the Department 
H12   8 of Energy, to prescribe personnel strengths for such fiscal years 
H12   9 for the Armed Forces, and for other purposes.<p/>
H12  10 <p_><tf_>Be it enacted by the Senate and House of Representatives 
H12  11 of the United States of America in Congress assembled,<tf/><p/>
H12  12 <h_><p_>SECTION 1. SHORT TITLE.<p/><h/>
H12  13 <p_>This Act may be cited as the 'National Defense Authorization 
H12  14 Act for Fiscal Years 1992 and 1993'.<p/>
H12  15 <h_><p_>TITLE X - GENERAL PROVISIONS<p/>
H12  16 <p_>PART G - MISCELLANEOUS MATTERS<p/>
H12  17 <p_>SEC. 1095. IRAQ AND THE REQUIREMENTS OF SECURITY COUNCIL 
H12  18 RESOLUTION 687.<p/><h/>
H12  19 <p_>(a) FINDING. - The Congress finds that the Government of Iraq 
H12  20 continues to violate United Nations Security Council Resolution 
H12  21 687, which required Iraq to submit within 15 days of its adoption 
H12  22 on April 3, 1991, a declaration of the locations, amounts, and 
H12  23 types of all weapons of mass destruction and to 
H12  24 <quote_>"unconditionally accept the destruction, removal or 
H12  25 rendering harmless"<quote/> of chemical weapons, biological 
H12  26 weapons, and missiles with a range greater than 150 kilometers and 
H12  27 the removal of nuclear weapons-usable material.<p/>
H12  28 <p_>(b) SENSE OF CONGRESS. - It is the sense of the Congress that 
H12  29 -<p/>
H12  30 <p_>(1) Iraq's noncompliance with United Nations Security Council 
H12  31 Resolution 687 constitutes a continuing threat to the peace, 
H12  32 security, and stability of the Persian Gulf region;<p/>
H12  33 <p_>(2) the President should consult closely with the partners of 
H12  34 the United States in the Desert Storm coalition and with the 
H12  35 members of the United Nations Security Council in order to present 
H12  36 a united front of opposition to Iraq's continuing noncompliance 
H12  37 with Security Council Resolution 687; and<p/>
H12  38 <p_>(3) the Congress supports the use of all necessary means to 
H12  39 achieve the goals of Security Council Resolution 687 as being 
H12  40 consistent with the Authorization for Use of Military Force Against 
H12  41 Iraq Resolution (Public Law 102-1).<p/>
H12  42 <h_><p_>RESOLUTION 688<p/><h/>
H12  43 <p_>(a) FINDING. - The Congress finds that the Government of Iraq, 
H12  44 through its ongoing suppression of the political opposition, 
H12  45 including Kurds and Shias, continues to violate the Universal 
H12  46 Declaration of Human Rights and United Nations Security Council 
H12  47 Resolution 688 which demanded that Iraq <quote_>"ensure that the 
H12  48 human and political rights of all Iraqi citizens are 
H12  49 respected"<quote/>.<p/>
H12  50 <p_>(b) SENSE OF CONGRESS<tf/>. - It is the sense of the Congress 
H12  51 that -<p/>
H12  52 <p_>(1) Iraq's noncompliance with United Nations Security Council 
H12  53 Resolution 688 constitutes a continuing threat to the peace, 
H12  54 security, and stability of the Persian Gulf region;<p/>
H12  55 <p_>(2) the President should consult closely with the partners of 
H12  56 the United States in the Desert Storm coalition and with the 
H12  57 members of the United Nations Security Council in order to present 
H12  58 a united front of opposition to Iraq's continuing non-compliance 
H12  59 with Security Council Resolution 688; and<p/>
H12  60 <p_>(3) the Congress supports the use of all necessary means to 
H12  61 achieve the goals of United Nations Security Council Resolution 688 
H12  62 consistent with all relevant United Nations Security Council 
H12  63 Resolutions and the Authorization for Use of Military Force Against 
H12  64 Iraq Resolution (Public Law 102-1).<p/>
H12  65 <h_><p_>(4) Persian Gulf Conflict Supplemental Authorization and 
H12  66 Personnel Benefits Act of 1991<p/>
H12  67 <p_>Partial text of Public Law 102-25 [S. 725], 105 Stat. 75, 
H12  68 approved April 6, 1991; as amended by Public Law 102-190 [National 
H12  69 Defense Authorization Act for Fiscal Years 1992 and 1993; 105 Stat. 
H12  70 1508], 105 Stat. 1290, approved December 5, 1991; and Public Law 
H12  71 102-484 [National Defense Authorization Act for Fiscal Year 1993; 
H12  72 H.R. 5006], 106 Stat. 2315, approved October 23, 1992<p/><h/>
H12  73 <p_>AN ACT Entitled the 'Persian Gulf Conflict Supplemental 
H12  74 Authorization and Personnel Benefits Act of 1991'.<p/>
H12  75 <p_><tf_>Be it enacted by the Senate and House of Representatives 
H12  76 of the United States of America in Congress assembled<tf/>,<p/>
H12  77 <h_><p_>SECTION 1. SHORT TITLE<p/><h/>
H12  78 <p_>This Act may be cited as the 'Persian Gulf Conflict 
H12  79 Supplemental Authorization and Personnel Benefits Act of 1991'.<p/>
H12  80 <h_><p_>SEC. 2. TABLE OF CONTENTS<*_>three-stars<*/><p/><h/>
H12  81 <h_><p_>SEC. 3. DEFINITIONS<p/><h/>
H12  82 <p_>For the purposes of this Act:<p/>
H12  83 <p_>(1) The term 'Operation Desert Storm' means operations of 
H12  84 United States Armed Forces conducted as a consequence of the 
H12  85 invasion of Kuwait by Iraq (including operations known as Operation 
H12  86 Desert Shield, Operation Desert Storm, and Operation Provide 
H12  87 Comfort).<p/>
H12  88 <p_>(2) The term 'incremental costs associated with Operation 
H12  89 Desert Storm' means costs referred to in section 251(b)(2)(D)(ii) 
H12  90 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 
H12  91 U.S.C. 901(b)(2)(D)(ii)).<p/>
H12  92 <p_>(3) The term 'Persian Gulf conflict' means the period beginning 
H12  93 on August 2, 1990, and ending thereafter on the date prescribed by 
H12  94 Presidential proclamation or by law.<p/>
H12  95 <p_>(4) The term 'congressional defense committees' has the meaning 
H12  96 given that term in section 3 of the National Defense Authorization 
H12  97 Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1498).<p/>
H12  98 <h_><p_>SEC. 4. CONSTRUCTION WITH PUBLIC LAW 101-510.<p/><h/>
H12  99 <p_>Any authorization of appropriations, or authorization of the 
H12 100 transfer of authorizations of appropriations, made by this Act is 
H12 101 in addition to the authorization of appropriations, or the 
H12 102 authority to make transfers, provided in the National Defense 
H12 103 Authorization Act for Fiscal Year 1991 (Public Law 101-510).<p/>
H12 104 <h_><p_>TITLE I - AUTHORIZATION OF FISCAL YEAR 1991 SUPPLEMENTAL 
H12 105 APPROPRIATIONS FOR OPERATION DESERT STORM<p/>
H12 106 <p_>SEC. 101. FUNDS IN THE DEFENSE COOPERATION ACCOUNT<p/><h/>
H12 107 <p_>(a) AUTHORIZATION OF APPROPRIATION. - During fiscal years 1991, 
H12 108 1992, and 1993, there is authorized to be appropriated to the 
H12 109 Department of Defense current and future balances in the Defense 
H12 110 Cooperation Account established under section 2608 of title 10, 
H12 111 United States Code.<p/>
H12 112 <p_>(b) USE OF FUNDS. - Amounts appropriated pursuant to subsection 
H12 113 (a) shall be available only for -<p/>
H12 114 <p_>(1) transfer by the Secretary of Defense to fiscal years 1991, 
H12 115 1992, and 1993 appropriation accounts of the Department of Defense 
H12 116 or Coast Guard for incremental costs associated with Operation 
H12 117 Desert Storm; and<p/>
H12 118 <p_>(2) replenishment of the Persian Gulf Regional Defense Fund 
H12 119 created under section 102.<p/>
H12 120 <h_><p_>SEC. 102. PERSIAN GULF REGIONAL DEFENSE FUND<p/><h/>
H12 121 <p_>(a) ESTABLISHMENT OF ACCOUNT. - There is established in the 
H12 122 Treasury of the United States a working capital account for the 
H12 123 Department of Defense to be known as the 'Persian Gulf Regional 
H12 124 Defense Fund'.<p/>
H12 125 <p_>(b) AUTHORIZATION OF APPROPRIATIONS. - During fiscal years 1991 
H12 126 and 1992, there is authorized to be appropriated to the Persian 
H12 127 Gulf Regional Defense Fund the sum of $15,000,000,000.<p/>
H12 128 <p_>(c) USE OF FUNDS. - Funds appropriated pursuant to subsection 
H12 129 (b) shall be available only for transfer by the Secretary of 
H12 130 Defense to fiscal years 1991, 1992, and 1993 appropriation accounts 
H12 131 of the Department of Defense or Coast Guard for the incremental 
H12 132 costs associated with Operation Desert Storm. Such funds may be 
H12 133 used for that purpose only to the extent that funds are not 
H12 134 available in the Defense Cooperation Account for transfer for such 
H12 135 incremental costs.<p/>
H12 136 <p_>(d) REPLENISHMENT OF ACCOUNT. - Amounts transferred from the 
H12 137 Persian Gulf Regional Defense Fund shall be replenished from funds 
H12 138 available in the Defense Cooperation Account to the extent that 
H12 139 funds are available in the Defense Cooperation Account. Whenever 
H12 140 the balance in the Persian Gulf Regional Defense Fund is less than 
H12 141 the amount appropriated to that account pursuant to this section, 
H12 142 the Secretary shall transfer from the Defense Cooperation Account 
H12 143 such funds as become available to the account to replenish the 
H12 144 Persian Gulf Regional Defense Fund before making any transfer of 
H12 145 such funds under sections 101 and 102.<p/>
H12 146 <p_>(e) REVERSION OF BALANCE UPON TERMINATION OF ACCOUNT. - Any 
H12 147 balance in the Persian Gulf Regional Defense Fund at the time of 
H12 148 the termination of the account shall revert to the general fund of 
H12 149 the Treasury.<p/>
H12 150 <h_><p_>SEC. 103. ADDITIONAL TRANSFER AUTHORITY<p/><h/>
H12 151 <p_>The amount of the transfer authority provided in section 1401 
H12 152 of Public Law 101-510 is hereby increased by the amount of such 
H12 153 transfers as the Secretary of Defense makes pursuant to law (other 
H12 154 than Public Law 101-511) to make adjustments among amounts provided 
H12 155 in titles I and II of Public Law 101-511 due to incremental costs 
H12 156 associated with Operation Desert Storm.<p/>
H12 157 <h_><p_>SEC. 104. ADMINISTRATION OF TRANSFERS<p/><h/>
H12 158 <p_>A transfer made under the authority of section 101 or 102 
H12 159 increases by the amount of the transfer the amount authorized for 
H12 160 the account to which the transfer is made.<p/>
H12 161 <h_><p_>SEC. 105. NOTICE TO CONGRESS OF TRANSFERS<p/><h/>
H12 162 <p_>(a) NOTICE-AND-WAIT. - A transfer may not be made under section 
H12 163 101 or 102 until the seventh day after the congressional defense 
H12 164 committees receive a report with respect to that transfer under 
H12 165 subsection (b).<p/>
H12 166 <p_>(b) CONTENT OF REPORT. - A report under subsection (a) shall 
H12 167 include the following:<p/>
H12 168 <p_>(1) A certification by the Secretary of Defense that the amount 
H12 169 or amounts proposed to be transferred will be used only for 
H12 170 incremental costs associated with Operation Desert Storm.<p/>
H12 171 <p_>(2) A statement of each account to which the transfer is 
H12 172 proposed to be made and the amount proposed to be transferred to 
H12 173 such account.<p/>
H12 174 <p_>(3) A description of the programs, projects, and activities for 
H12 175 which funds proposed to be transferred are proposed to be used.<p/>
H12 176 <p_>(4) In the case of a transfer from the Persian Gulf Regional 
H12 177 Defense Fund established under section 102, an explanation of the 
H12 178 reasons why funds are not available in the Defense Cooperation 
H12 179 Account for such transfer.<p/>
H12 180 <h_><p_>SEC. 106. MONTHLY REPORTS ON TRANSFERS<p/><h/>
H12 181 <p_>Not later than seven days after the end of each month in fiscal 
H12 182 years 1991, 1992, and 1993, the Secretary of Defense shall submit 
H12 183 to the congressional defense committees and the Comptroller<&|>sic! 
H12 184 General of the United States a detailed report on the cumulative 
H12 185 total amount of the transfers made under the authority of this 
H12 186 title through the end of that month.<p/>
H12 187 <h_><p_>TITLE II - WAIVER OF PERSONNEL CEILINGS AFFECTED BY 
H12 188 OPERATION DESERT STORM<p/>
H12 189 <p_>SEC. 203. AUTHORIZATION FROM DEFENSE COOPERATION ACCOUNT<p/><h/>
H12 190 <p_>(a) AUTHORIZATION. - In addition to authorizations under 
H12 191 section 101, there is hereby authorized to be appropriated from the 
H12 192 Defense Cooperation Account such sums as may be necessary for 
H12 193 increases in military personnel costs for fiscal years 1991 through 
H12 194 1995 resulting from the exercise of the authorities provided in 
H12 195 section 201. Such increases in costs are incremental costs 
H12 196 associated with Operation Desert Storm.<p/>
H12 197 <p_>(b) USE OF FUNDS. - Funds appropriated to the Persian Gulf 
H12 198 Regional Defense Fund pursuant to section 102(b) may be used for 
H12 199 the purposes described in subsection (a) to the extent provided in 
H12 200 section 102(c).<p/>
H12 201 <p_>(c) REPORTING. - Funds obligated for the purposes described in 
H12 202 subsection (a) shall be included in the reports required by section 
H12 203 106.<p/>
H12 204 <h_><p_>SEC. 204. CONFORMING REPEAL<p/><h/>
H12 205 <p_>Section 1117 of the National Defense Authorization Act for 
H12 206 Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1637) is 
H12 207 repealed.<p/>
H12 208 <h_><p_>TITLE IV - REPORTS ON FOREIGN CONTRIBUTIONS AND THE COSTS 
H12 209 OF OPERATION DESERT STORM<p/>
H12 210 <p_>SEC. 401. REPORTS ON UNITED STATES COSTS IN THE PERSIAN GULF 
H12 211 CONFLICT AND FOREIGN CONTRIBUTIONS TO OFFSET SUCH COSTS<p/><h/>
H12 212 <p_>(a) REPORTS REQUIRED. - The Director of the Office of 
H12 213 Management and Budget shall prepare, in accordance with this 
H12 214 section, periodic reports on the incremental costs associated with 
H12 215 Operation Desert Storm and on the amounts of contributions made to 
H12 216 the United States by foreign countries to offset those costs. The 
H12 217 Director shall prepare the reports in consultation with the 
H12 218 Secretary of Defense, the Secretary of State, the Secretary of the 
H12 219 Treasury, and other appropriate Government officials.<p/>
H12 220 <p_>(b) COSTS OF OPERATION DESERT STORM. -<p/>
H12 221 <p_>(1) PERIOD COSTS AND CUMULATIVE COSTS. - Each report prepared 
H12 222 under subsection (a) shall specify -<p/>
H12 223 <p_>(A) the incremental costs associated with Operation Desert 
H12 224 Storm that were incurred during the period covered by the report; 
H12 225 and<p/>
H12 226 <p_>(B) the cumulative total of such costs, by fiscal year, from 
H12 227 August 1, 1990, to the end of the period covered by the report.<p/>
H12 228 <p_>(2) NONRECURRING COSTS AND COSTS OFFSET. - In specifying the 
H12 229 incremental costs associated with Operation Desert Storm that were 
H12 230 incurred during the period covered by a report and the total of 
H12 231 such costs, the Director shall separately identify those costs that 
H12 232 -<p/>
H12 233 <p_>(A) are nonrecurring costs;<p/>
H12 234 <p_>(B) are offset by in-kind contributions; or<p/>
H12 235 <p_>(C) are offset (or proposed to be offset) by the realignment, 
H12 236 reprogramming, or transfer of funds appropriated for activities 
H12 237 unrelated to the Persian Gulf conflict.<p/>
H12 238 <p_>(c) SPECIFIC COST AREAS. - Each report prepared under 
H12 239 subsection (a) on the incremental costs associated with Operation 
H12 240 Desert Storm shall specify an allocation of the total amount of 
H12 241 such costs among the military departments, the Defense Agencies of 
H12 242 the Department of Defense, and the Office of the Secretary of 
H12 243 Defense, by category, including the following categories:<p/>
H12 244 
H13   1 <#FROWN:H13\><p_><quote_>"(1) <tf_>IN GENERAL<tf/>. - If the 
H13   2 taxpayer's principal residence or any of its contents is 
H13   3 compulsorily or involuntarily converted as a result of a 
H13   4 Presidentially declared disaster -<p/>
H13   5 <p_>"(A) <tf_>TREATMENT OF INSURANCE PROCEEDS<tf/>. -<p/>
H13   6 <p_>"(i) <tf_>EXCLUSION FOR UNSCHEDULED PERSONAL PROPERTY<tf/>. - 
H13   7 No gain shall be recognized by reason of the receipt of any 
H13   8 insurance proceeds for personal property which was part of such 
H13   9 contents and which was not scheduled property for purposes of such 
H13  10 insurance.<p/>
H13  11 <p_>"(ii) <tf_>OTHER PROCEEDS TREATED AS COMMON FUND<tf/>. - In the 
H13  12 case of any insurance proceeds (not described in clause (1)) for 
H13  13 such residence or contents -<p/>
H13  14 <p_>"(I) such proceeds shall be treated as received for the 
H13  15 conversion of a single item of property, and<p/>
H13  16 <p_>"(II) any property which is similar or related in service or 
H13  17 use to the residence so converted (or contents thereof) shall be 
H13  18 treated for purposes of subsection (a)(2) as property similar or 
H13  19 related in service or use to such single item of property.<p/>
H13  20 <p_>"(B) <tf_>EXTENSION OF REPLACEMENT PERIOD<tf/>. - Subsection 
H13  21 (a)(2)(B) shall be applied with respect to any property so 
H13  22 converted by substituting <quote_>"4 years"<quote/> for <quote_>"2 
H13  23 years"<quote/>.<p/>
H13  24 <p_>"(2) <tf_>PRESIDENTIALLY DECLARED DISASTER<tf/>. - For purposes 
H13  25 of this subsection, the term 'Presidentially declared disaster' 
H13  26 means any disaster which, with respect to the area in which the 
H13  27 residence is located, resulted in a subsequent determination by the 
H13  28 President that such area warrants assistance by the Federal 
H13  29 Government under the Disaster Relief and Emergency Assistance 
H13  30 Act.<p/>
H13  31 <p_>"(3) <tf_>PRINCIPAL RESIDENCE<tf/>. - For purposes of this 
H13  32 subsection, the term 'principal residence' has the same meaning as 
H13  33 when used in section 1034, except that no ownership requirement 
H13  34 shall be imposed."<quote/><p/>
H13  35 <p_>(b) <tf_>EFFECTIVE DATE<tf/>. - The amendment made by 
H13  36 subsection (a) shall apply to property compulsorily or 
H13  37 involuntarily converted as a result of disasters for which the 
H13  38 determination referred to in section 1033(h)(2) of the Internal 
H13  39 Revenue Code of 1986 (as added by this section) is made on or after 
H13  40 September 1, 1991, and to taxable years ending on or after such 
H13  41 date.<*_>bullet<*/><p/>
H13  42 <p_>By Mr. AKAKA:<p/>
H13  43 <p_>S.3124. A bill to amend the Consolidated Farm and Rural 
H13  44 Development Act and the Farm Credit Act of 1971 to establish a 
H13  45 program to aid beginning farmers and ranchers, to improve the 
H13  46 operation of the Farmers Home Administration, and for other 
H13  47 purposes; to the Committee on Agriculture, Nutrition, and 
H13  48 Forestry.<p/>
H13  49 <h_><p_>FARMING OPPORTUNITY ACT<p/><h/>
H13  50 <p_><*_>bullet<*/>Mr. AKAKA. Mr. President, today I am introducing 
H13  51 the Farming Opportunity Act, a bill to target credit assistance to 
H13  52 those who need it most - beginning farmers.<p/>
H13  53 <p_>Anyone familiar with farming should be alarmed by the dramatic 
H13  54 decline in the number of farmers and the advancing age of our farm 
H13  55 population. Last month the Census Bureau announced that the average 
H13  56 age of our farmers continues to grow older and that farm population 
H13  57 has once again declined.<p/>
H13  58 <p_>The average farmer is 52 years of age, compared to an average 
H13  59 of 33 years for nonfarmers. Today, there are twice as many farmers 
H13  60 over the age of 60 as there are below the age of 35. As our aging 
H13  61 farm population retires, we must ask ourselves: Where will the next 
H13  62 generation of farmers come from?<p/>
H13  63 <p_>Clearly we are not doing enough to attract rural youth to 
H13  64 farming. All too often, young people with farm backgrounds don't 
H13  65 follow in their parents' footsteps. Often this occurs at their 
H13  66 parents' urging. Farming simply has too many barriers to remain 
H13  67 attractive to young people.<p/>
H13  68 <p_>Gone are the days when, if you had land, labor, and a little 
H13  69 cash, you could make a go at farming. Modern farms are capital 
H13  70 intensive businesses. Ask struggling young farmers about the 
H13  71 greatest challenge they face, and the near-universal response you 
H13  72 will hear is <quote_>"access to credit."<quote/><p/>
H13  73 <p_>The Federal Government simply has not done enough to help 
H13  74 beginning farmers establish themselves or remain in business. In 
H13  75 part, this is because the Farmers Home Administration has forsaken 
H13  76 its central mission of extending credit to beginning farmers until 
H13  77 their operations can become viable. The legislation I introduce 
H13  78 today is a companion measure to H.R. 2401, introduced by 
H13  79 Representative <tf|>PENNY, and is designed to redirect the lending 
H13  80 priorities of the Farmers Home Administration.<p/>
H13  81 <p_>Under this bill, a new FmHA loan program would be established 
H13  82 to assist persons interested in pursuing farming, ranching and 
H13  83 aquaculture as their primary occupation. It specifically targets 
H13  84 the beginning farmer - individuals who have not previously operated 
H13  85 a farm or have operated farms for less <}_><-|>then<+|>than<}/> 5 
H13  86 years.<p/>
H13  87 <p_>To relieve<&|>sic! assistance under the Farming Opportunity 
H13  88 Act, an applicant must agree to participate in loan assessment, 
H13  89 borrower training and financial management programs under the 
H13  90 Department of Agriculture. An applicant must be able to demonstrate 
H13  91 that after 10 years the farming operation will be viable without 
H13  92 further FmHA loans. Finally, the measure creates a special 
H13  93 downpayment loan program so that these farmers can achieve the 
H13  94 dream of owning their own farm.<p/>
H13  95 <p_>Nowhere would such a program have greater benefit 
H13  96 <}_><-|>that<+|>than<}/> in Hawaii. Due to a number of recent 
H13  97 developments, we have an abundance of idle farmland and a growing 
H13  98 rural labor pool.<p/>
H13  99 <p_>Last Friday, the big island's second largest sugar plantation, 
H13 100 Mauna Kea Agribusiness, announced that it would cease farming 
H13 101 sugarcane. Beginning in November, nearly 9,000 acres of caneland 
H13 102 will be converted to other agricultural uses.<p/>
H13 103 <p_>One-third of the land producing sugarcane 20 years ago is no 
H13 104 longer being cultivated today. By the time that Mauna Kea's sugar 
H13 105 operations have come to an end, Hawaii's cane acreage will have 
H13 106 declined by 85,000 acres. If past experience is a guide, only 12 
H13 107 percent will be planted in other crops.<p/>
H13 108 <p_>There is an ample supply of good farmland in Hawaii. In 
H13 109 addition to the changes planned by Mauna Kea Sugar, there is 
H13 110 evidence that additional farm acreage may be available soon. As a 
H13 111 means of raising capital in order to reduce its debt, the big 
H13 112 island's Hamakua Sugar Co. has announced plans to sell nearly 2,000 
H13 113 acres at Laupahoehoe. The land will be subdivided into small 
H13 114 agricultural lots and offered for sale to current and former 
H13 115 Hamakua employees, and to nearby residents.<p/>
H13 116 <p_>In another development, the 9,600-acre Mauna Kea Ranch was 
H13 117 recently subjected to a foreclosure sale. While the new landowner 
H13 118 has not announced its<&|>sic! intentions about the use of this 
H13 119 property, ranching or agriculture appears to be the only 
H13 120 conceivable land use. Further reductions in Hawaii's sugar acreage 
H13 121 remain a possibility, as the Hawaiian sugar industry gets caught in 
H13 122 a squeeze between static or declining sugar prices and higher 
H13 123 production costs.<p/>
H13 124 <p_>Rising unemployment, especially on the neighbor islands, means 
H13 125 that there is a labor pool capable of becoming the next generation 
H13 126 of Hawaii's farmers. On the big island, unemployment is 3.1 percent 
H13 127 above the statewide average. Molokai is 4.3 percent above the State 
H13 128 average, while Maui's unemployment is 1.3 percent above the State 
H13 129 as a whole.<p/>
H13 130 <p_>The neighbor island economy has been hard hit by a downturn 
H13 131 <}_><-|>is<+|>in<}/> sugar and tourism. The Farming Opportunity Act 
H13 132 can offer a shot in the arm for our lagging economy. Many sugar 
H13 133 workers have spent their lives in agriculture, and I want to ensure 
H13 134 that they can continue to find employment in farming.<p/>
H13 135 <p_>Agriculture has always been the economic backbone of rural 
H13 136 Hawaii. The decline of sugar means that we must turn to other crops 
H13 137 if we are to preserve the economic health of the neighbor islands. 
H13 138 The best way to achieve this transition is to promote new ventures 
H13 139 in diversified agriculture by targeting credit assistance to 
H13 140 beginning farmers.<p/>
H13 141 <p_>There is no magic answer to the problems that precipitated 
H13 142 Mauna Kea's decline. But I am committed to finding solutions that 
H13 143 will maintain a strong and healthy economy in rural Hawaii.<p/>
H13 144 <p_>Fortunately, Hawaii has an abundance of good agricultural land 
H13 145 as well as ambitious young people capable of farming successfully. 
H13 146 What is lacking is a credit program specifically designed for the 
H13 147 needs of beginning farmers. Through the Farming Opportunity Act, we 
H13 148 can establish a new generation of farmers who will produce 
H13 149 diversified crops that are in demand in mainland and overseas 
H13 150 markets.<p/>
H13 151 <p_>Mr President, I ask unanimous consent that a copy of the bill 
H13 152 be printed in the <tf|>RECORD at the conclusion of my statement.<p/>
H13 153 <p_>There being no objection, the bill was ordered to be printed in 
H13 154 the <tf|>RECORD, as follows:<p/>
H13 155 <h_><p_>S. 3124<p/><h/>
H13 156 <p_><tf_>Be it enacted by the Senate and House of Representatives 
H13 157 of the United States of America in Congress assembled,<tf/><p/>
H13 158 <h_><p_>SECTION. 1. SHORT TITLE; TABLE OF CONTENTS.<p/><h/>
H13 159 <p_>(a) <tf_>SHORT TITLE<tf/>. - This Act may be cited as the 
H13 160 'Farming Opportunity Act of 1992'.<p/>
H13 161 <p_>(b) <tf_>TABLE OF CONTENTS<tf/>. - The table of contents of 
H13 162 this Act is as follows.<p/>
H13 163 <p_>Sec. 1. Short title; short title.<p/>
H13 164 <p_>Sec. 2. Limitation on aggregate indebtedness.<p/>
H13 165 <p_>Sec. 3. Federal-State beginning farmer partnership.<p/>
H13 166 <p_>Sec. 4. Beginning farmer and rancher program.<p/>
H13 167 <p_>Sec. 5. Graduation of borrowers with operating loans or 
H13 168 guarantees to private commercial credit.<p/>
H13 169 <p_>Sec. 6. Time period within which county committees are required 
H13 170 to meet to consider applications for farm ownership and operating 
H13 171 loans and guarantees and beginning farmer plans.<p/>
H13 172 <p_>Sec. 7. Period for certification of eligibility for loans.<p/>
H13 173 <p_>Sec. 8. Processing of applications for farm operating loans.<p/>
H13 174 <p_>Sec. 9. Simplified application for guaranteed loans of $50,000 
H13 175 or less.<p/>
H13 176 <p_>Sec. 10. Graduation of seasoned direct loan borrowers to the 
H13 177 loan guarantee program.<p/>
H13 178 <p_>Sec. 11. Debt service margin requirements.<p/>
H13 179 <p_>Sec. 12. Targeting of loans to members of groups whose members 
H13 180 have been subjected to gender prejudice.<p/>
H13 181 <p_>Sec. 13. Recordkeeping of loan success rates by gender.<p/>
H13 182 <p_>Sec. 14. Effective date.<p/>
H13 183 <h_><p_>SEC. 2. LIMITATION ON AGGREGATE INDEBTEDNESS.<p/><h/>
H13 184 <p_>The first sentence of section 305 of the Consolidated Farm and 
H13 185 Rural Development Act (7 U.S.C. 1925) is amended by striking 
H13 186 <quote_>"and 310D"<quote/> and inserting <quote_>"310D, and 
H13 187 310E"<quote/>.<p/>
H13 188 <h_><p_>SEC. 3. FEDERAL-STATE BEGINNING FARMER PARTNERSHIP.<p/><h/>
H13 189 <p_>(a) <h_>COORDINATION OF ASSISTANCE FOR ELIGIBLE BEGINNING 
H13 190 FARMERS AND RANCHERS<tf/>. - Section 309 of the Consolidated Farm 
H13 191 and Rural Development Act (7 U.S.C. 1929) is amended by adding at 
H13 192 the end the following new subsection:<p/>
H13 193 <p_><quote_>"(i)(1) Within 60 days after any State expresses to the 
H13 194 Secretary, in writing, a desire to coordinate the provision of 
H13 195 financial assistance to eligible beginning farmers and ranchers in 
H13 196 the state, the Secretary and the State shall conclude a joint 
H13 197 memorandum of understanding that shall govern how the Secretary and 
H13 198 the State are to coordinate the assistance.<p/>
H13 199 <p_>"(2) The memorandum of understanding shall provide that if a 
H13 200 State beginning farmer program makes a commitment to provide an 
H13 201 eligible beginning farmer or rancher (as defined in section 
H13 202 310E(e)) with financing to establish or maintain a viable farming 
H13 203 or ranching operation, the Secretary shall, subject to applicable 
H13 204 law, normal loan approval criteria, and the availability of funds, 
H13 205 provide that farmer or rancher with -<p/>
H13 206 <p_>"(A) a downpayment loan under section 310(E);<p/>
H13 207 <p_>"(B) a guarantee of the financing provided by the State 
H13 208 program; or<p/>
H13 209 <p_>"(C) such a loan and such a guarantee.<p/>
H13 210 <p_>"(3) The Secretary may not charge any person any fee with 
H13 211 respect to the provision of any guarantee under this subsection.<p/>
H13 212 <p_>"(4) As used in paragraph (1), the term 'State beginning farmer 
H13 213 program' means any program that is -<p/>
H13 214 <p_>"(A) carried out by, or under contract with, a State; and <p/>
H13 215 <p_>"(B) designed to assist persons in obtaining the financial 
H13 216 assistance necessary to enter agriculture and establish viable 
H13 217 farming or ranching operations."<quote/>.<p/>
H13 218 <p_>(b) <tf_>ADVISORY COMMITTEE<tf/>. -<p/>
H13 219 <p_>(1) <tf_>ESTABLISHMENT; PURPOSE<tf/>. - Within 18 months after 
H13 220 the date of the enactment of this Act, the Secretary of Agriculture 
H13 221 shall establish an advisory committee, to be known as the 'Advisory 
H13 222 Committee on Beginning Farmers and Ranchers', which shall provide 
H13 223 advice to the Secretary on -<p/>
H13 224 <p_>(A) the development of the program of coordinated assistance to 
H13 225 eligible beginning farmers and ranchers under section 300(1) of the 
H13 226 Consolidated Farm and Rural Development Act (as added by subsection 
H13 227 (a) of this section);<p/>
H13 228 <p_>(B) ways to maximize the number of new farming and ranching 
H13 229 opportunities created through the program;<p/>
H13 230 <p_>(C) ways to encourage States to participate in the program,<p/>
H13 231 <p_>(D) the administration of the program; and<p/>
H13 232 <p_>(E) other methods of creating new farming or ranching 
H13 233 opportunities.<p/>
H13 234 <p_>(2) <tf|>MEMBERSHIP. - The Secretary shall appoint the members 
H13 235 of the Advisory Committee which shall include representatives from 
H13 236 the following:<p/>
H13 237 <p_>(A) The Farmers Home Administration.<p/>
H13 238 
H14   1 <#FROWN:H14\><h_><p_>2. CHARACTERISTICS OF POVERTY IN AFRICA<p/>
H14   2 <p_>2.1. Definition and Causes of African Poverty<p/>
H14   3 <p_>2.1.1. What Is Poverty?<p/><h/>
H14   4 <p_>Poverty is the state of deprivation of fundamental human needs 
H14   5 and expectations. Among these are the desire for sufficient food 
H14   6 and water, adequate shelter, good health, long life, knowledge, and 
H14   7 the capacity to provide materially for oneself and one's family 
H14   8 through productive endeavor. Poverty is, thus, far more than lack 
H14   9 of income, although that is how it is typically measured. It is 
H14  10 rather the absence of basic human progress, without which the 
H14  11 concept of social and economic development becomes a mockery.<p/>
H14  12 <p_>Poverty may be defined relatively and absolutely. Relative 
H14  13 poverty refers to comparative measures of deprivation between 
H14  14 groups within one country or cross-nationally. Absolute poverty 
H14  15 attempts to define a minimum standard of material acquisition below 
H14  16 which one is poor anywhere in the world. The absolute poverty line 
H14  17 is normally that income required to secure a basic nutritional 
H14  18 intake (2,250 calories per day) and other necessities (Lipton, 
H14  19 1988). The World Bank has estimated this consumption-based poverty 
H14  20 line to lie between $275 and $370 per person per year, according to 
H14  21 country context (World Bank, 1990a).<p/>
H14  22 <p_>The absolute poverty line in each country should be estimated 
H14  23 by calculating the cost of a basket of essential goods and 
H14  24 adjusting it to reflect real purchasing power with respect to other 
H14  25 countries. The number of poor households in a country can then be 
H14  26 expressed as a proportion of total population. This headcount 
H14  27 index, however, fails to indicate the degree to which the poor fall 
H14  28 below the poverty line. The poverty gap measures the income 
H14  29 necessary to bring the poor up to the poverty line. Nevertheless, 
H14  30 both the headcount and the poverty gap calculation fail to indicate 
H14  31 the distribution of inequality among the poor.<p/>
H14  32 <p_>Poverty lines adjusted for purchasing power are thus gross 
H14  33 measures of the number of poor in a country. Country-specific 
H14  34 poverty lines can only be a start in understanding the 
H14  35 characteristics and composition of poverty, with more detailed 
H14  36 analysis necessary for targeting programmes of poverty 
H14  37 reduction.<p/>
H14  38 <h_><p_>2.1.2. The Nature of African Poverty<p/><h/>
H14  39 <p_>Africa is among the poorest regions of the world, and the 
H14  40 number of poor is increasing rapidly. The number of persons with 
H14  41 less than $370 income per year increased by about two-thirds 
H14  42 between 1970 and 1985 and is expected to increase from 180 million 
H14  43 in 1985 (47 percent of the population) to 265 million by the year 
H14  44 2000.<p/>
H14  45 <p_>If current trends continue, the African poor, constituting 16 
H14  46 percent of the world's destitute in 1985, will comprise 30 percent 
H14  47 of the total by the year 2000 (Lele and Adu-Nyako, 1991). Other 
H14  48 estimates of African poverty are worse and probably reflect an 
H14  49 unrealistically high absolute poverty level. The ILO, for example, 
H14  50 estimates that the number of absolute poor in Africa had already 
H14  51 reached 270 million by 1985, about half the total population; by 
H14  52 1995 this number is expected to reach nearly 400 million (UNDP, 
H14  53 1990).<p/>
H14  54 <p_>Poverty in Africa is still primarily a rural phenomenon, 
H14  55 despite the increasing presence of slums around rapidly growing 
H14  56 cities. Reflecting the generally dismal conditions of rural life, 
H14  57 urbanization has been rapidly increasing throughout Africa and has 
H14  58 been growing faster than in other regions of the world. From an 
H14  59 urban population of 14 percent in 1965, the towns and cities of 
H14  60 Africa expanded to 28 percent of the total population in 1985 and 
H14  61 continued to grow at over 6 percent per year throughout the 1980s. 
H14  62 Migration to cities has tended to be primarily a male phenomenon, 
H14  63 leading to heightened impoverishment of rural areas and rapidly 
H14  64 growing number of female-headed rural families, especially in 
H14  65 Southern and Eastern Africa.<p/>
H14  66 <p_>Although varying from country to country, the overall 
H14  67 population growth rate for Africa is about 3.1 percent a year, 
H14  68 while per capita agricultural production has declined for more than 
H14  69 a decade. In some countries, population doubled between 1965 and 
H14  70 1987. During the same period real GNP per capita declined from $400 
H14  71 to 330 (excluding Nigeria).<p/>
H14  72 <p_>From 1970 to 1985, agricultural production rose on average only 
H14  73 1.4 percent per year, half the population growth rate. In spite of 
H14  74 rising food imports, malnutrition has become endemic in many 
H14  75 countries.<p/>
H14  76 <p_>Malnutrition and low income contribute strongly to the short 
H14  77 life expectancy of Africans, currently about 54 years compared to 
H14  78 62 for all developing countries. The child mortality rate of 196 
H14  79 per 1,000 is second only to India (200) among the regions of the 
H14  80 world. Primary school enrollments are the lowest in the world, 
H14  81 averaging 56 percent, and are strongly linked to high infant and 
H14  82 child mortality and morbidity rates.<p/>
H14  83 <p_>The lack of reliable data makes detailed accounting of the poor 
H14  84 impossible at present. Few countries can do more than estimate the 
H14  85 number of absolute poor and their location. However, for countries 
H14  86 with good data, the pattern of severely worsening poverty in Africa 
H14  87 holds across the continent (World Bank, 1990a). In Tanzania, real 
H14  88 rural living standards fell at an average annual rate of 2.5 
H14  89 percent between 1969 and 1983. Real urban wages declined by 65 
H14  90 percent during the same period, and real private consumption per 
H14  91 person has dropped 43 percent since 1973. In Nigeria, consumption 
H14  92 fell by 7 percent a year during the early 1980s and living 
H14  93 standards were lower in the mid-1980s than in the 1950s. In Ghana, 
H14  94 nearly 60 percent of the population in 1985 lived on less than $370 
H14  95 per year, while in Botswana this figure was almost 50 percent, in 
H14  96 spite of a near 9 percent a year economic growth rate since 1965. 
H14  97 In contrast, Morocco counted only 34 percent of its population 
H14  98 below the poverty line in 1984, down from 43 percent in 1970 (World 
H14  99 Bank, 1990a).<p/>
H14 100 <h_><p_>2.1.3. Causes of African Poverty<p/><h/>
H14 101 <p_>The origins of widespread poverty in Africa are rooted in the 
H14 102 economic dislocation and political balkanization brought on by 
H14 103 European colonialism. Since the end of colonialism, the following 
H14 104 factors have limited African progress in achieving broad-based 
H14 105 economic development, and have resulted in stagnant growth and 
H14 106 declining per capita incomes (Dumont and Mottin, 1980):<p/>
H14 107 <p_><*_>bullet<*/><tf_>Persistence in following inappropriate 
H14 108 development models<tf/> based on an emphasis on capital-intensive, 
H14 109 industrial sector investment at the expense of labor-intensive 
H14 110 agricultural<?_>-<?/>led growth. This has resulted in neglect of 
H14 111 rural areas in favor of urban zones, and a massive rural-to-urban 
H14 112 exodus;<p/>
H14 113 <p_><*_>bullet<*/><tf_>Overemphasis on public sector 
H14 114 interventions<tf/> in economic activities more efficiently 
H14 115 performed by the private sector. Not only has this hindered private 
H14 116 sector development, but it has also retarded development of public 
H14 117 capacity to work effectively in areas that are appropriate for 
H14 118 government intervention (such as the legal system, education, 
H14 119 health, and agricultural research);<p/>
H14 120 <p_><*_>bullet<*/><tf_>Failure to recognize the informal 
H14 121 sector<tf/> as a legitimate engine of economic growth. Although 
H14 122 several governments have become more enlightened in recent years, 
H14 123 many are still more concerned with policing informal sector 
H14 124 participants than in seeking strategies for assisting them to 
H14 125 improve the performance of their enterprises;<p/>
H14 126 <p_><*_>bullet<*/><tf_>Over-reliance on projects, donors, and 
H14 127 foreign assistance<tf/> that has resulted in too many poorly 
H14 128 conceived and supervised projects, bloated recurrent costs, and 
H14 129 inconsistent development strategies as governments depend more on 
H14 130 outsiders than their own citizens to make crucial public policy and 
H14 131 investment decisions;<p/>
H14 132 <p_><*_>bullet<*/><tf_>Neglect of subsistence food crops<tf/> 
H14 133 through lack of research and extension of appropriate production 
H14 134 and processing technologies;<p/>
H14 135 <p_><*_>bullet<*/><tf_>Unfavorable trends in the terms of 
H14 136 trade<tf/> as many African agricultural and mineral exports have 
H14 137 declined in price at the same time that import costs have risen, 
H14 138 most notably for oil; and<p/>
H14 139 <p_><*_>bullet<*/><tf_>Insufficient concern with environmental 
H14 140 degradation<tf/> as population growth combined with expansion of 
H14 141 areas cleared for agriculture and fuelwood gathering have imperiled 
H14 142 sustainable development.<p/>
H14 143 <p_>Historical poverty in Africa has been perpetuated in recent 
H14 144 years by slow economic growth coupled with rapid population 
H14 145 increases. African GDP growth slowed during the 1980s to 0.3 
H14 146 percent during the period 1980-1986 and even declined by 1.1 
H14 147 percent in 1987. Since 1988 growth rates have turned positive again 
H14 148 but remain modest.<p/>
H14 149 <p_>Much of the stagnation in economic growth revolved around the 
H14 150 inability of agriculture to outperform population increase, itself 
H14 151 primarily a reflection of low productivity and poor national 
H14 152 policies. Exports, which could have spurred real growth, were 
H14 153 hindered in most countries by overvalued exchange rates, lack of 
H14 154 price incentives to producers, and export taxes. Poor governmental 
H14 155 agriculture policies, in fact, seem to have been as important in 
H14 156 promoting agricultural decline in Africa as the general reversal of 
H14 157 commodity terms of trade during the 1970s and their stagnation in 
H14 158 the 1980s. This trend has been compounded by competition from Asian 
H14 159 and Latin American countries, whose share of agricultural exports 
H14 160 has expanded rapidly in the last decade.<p/>
H14 161 <p_>Slow growth of export-oriented agriculture has been accompanied 
H14 162 by a similar stagnation of smallholder food crop production and 
H14 163 productivity since the 1960s. This neglect of smallholder 
H14 164 agricultural development has operated in favor of 
H14 165 import-substituting industrialization. Although some countries were 
H14 166 successful in promoting exports for national growth (for example, 
H14 167 C<*_>o-circ<*/>te d'Ivoire, Cameroon, and Kenya), most were not. In 
H14 168 general, exploitation of natural forest or mineral resources and 
H14 169 capital-intensive, protected infant industries created pockets of 
H14 170 prosperity, yet bypassed the bulk of the population.<p/>
H14 171 <p_>In retrospect, it appears that African countries would have 
H14 172 been far more successful at reducing poverty and stimulating 
H14 173 economic growth had they focused on attaining an appropriate policy 
H14 174 environment and stimulating investment in smallholder agriculture 
H14 175 and health and education, while developing carefully their 
H14 176 comparative advantage in higher-value export crops. A broad-based, 
H14 177 small-farm approach could have stimulated family savings and 
H14 178 on-farm investment leading to increased food crop productivity and 
H14 179 diversification into specialized export crops. This could have 
H14 180 produced in many countries an economic transformation to 
H14 181 postsubsistence agriculture, while at the same time guaranteeing 
H14 182 increased food self<?_>-<?/>reliance.<p/>
H14 183 <p_>Social services and infrastructure investment spurred by the 
H14 184 apparent commodity export boom of the early 1970s, was replaced by 
H14 185 the mid-1980s by enormous debt service obligations and 
H14 186 macroeconomic adjustment programmes. This debt burden has increased 
H14 187 significantly since the mid-1970s; by 1987, debt outstanding was 
H14 188 nearly $129 billion, up from only $20 billion in 1975. By 1986, 
H14 189 debt service represented about 45 percent of African export 
H14 190 earnings, effectively stifling much potential for renewed economic 
H14 191 growth.<p/>
H14 192 <p_>In many countries, salaries now constitute an unacceptably high 
H14 193 share of government expenditures (70-85 percent), while essential 
H14 194 investment has dwindled to less than replacement levels. Social 
H14 195 indicators in many countries of Africa have stagnated or even 
H14 196 declined (except for immunization rates in some countries) during 
H14 197 the 1980s, and subsidized services remain untargeted on the poor 
H14 198 and tend to be disproportionately captured by the wealthier 
H14 199 classes. Primary education, sanitation and potable water services, 
H14 200 and basic health care have not been provided by African governments 
H14 201 at levels sufficient to match population growth, because of the 
H14 202 crowding-out effect of salary expenditures for oversized parastatal 
H14 203 and government bureaucracies, urban social services and 
H14 204 infrastructure, and more recently debt service obligations.<p/>
H14 205 <h_><p_>2.2. Who Are the Poor?<p/><h/>
H14 206 <p_>Comparatively speaking, most African populations are poor by 
H14 207 world standards. Moreover, the United Nations Development Programme 
H14 208 (UNDP) distinguishes various categories of poor: the chronic poor 
H14 209 at the margin of society, constantly suffering from deprivation; 
H14 210 the borderline poor, who are occasionally poor during the year 
H14 211 because of employment insecurity; and the newly poor, victims of 
H14 212 budgetary austerity under structural adjustment (UNDP, 1990). These 
H14 213 distinctions are important in the targeting of poverty reduction 
H14 214 actions within the context of an overall poverty reduction strategy 
H14 215 for the African Development Bank.<p/>
H14 216 <p_>The concern here is to identify the absolute poor, that is that 
H14 217 portion of the population in various countries with income per 
H14 218 person too low to afford 2,250 calories per day or basic 
H14 219 nutritional needs (Lipton, 1988). Although varying substantially 
H14 220 from country to country, a generally accepted per capita income 
H14 221 level for assuring nutritional adequacy is about $370 - adjusted 
H14 222 for purchasing power parity. This line is, of course, arbitrary and 
H14 223 represents a proxy indicator for serious material deprivation.<p/>
H14 224 <p_>The identification of an even lower level of poverty based on 
H14 225 an annual income of $275 per capita defines the extremely poor, or 
H14 226 'ultra-poor.' Both levels define poverty in absolute terms compared 
H14 227 to relative income levels based on country income or consumption 
H14 228 deciles or quintiles.
H14 229 
H15   1 <#FROWN:H15\><h_><p_>1. INTRODUCTION<p/><h/>
H15   2 <p_>The United States Department of Energy's (DOE) Office of 
H15   3 Civilian Radioactive Waste Management (OCRWM) has prepared this 
H15   4 draft Strategy for parties with an interest in spent nuclear fuel 
H15   5 and high-level radioactive waste transportation activities. The 
H15   6 purpose of the Strategy is to inform the public what steps DOE will 
H15   7 take to ultimately develop an implementation plan to provide 
H15   8 funding and technical assistance to States and Indian Tribes as 
H15   9 required by Section 180(c) of the Nuclear Waste Policy Act, as 
H15  10 amended (NWPA). A schedule of when the steps will take place is 
H15  11 included.<p/>
H15  12 <h_><p_>1.1 Purpose<p/><h/>
H15  13 <p_>The NWPA directs DOE to dispose of the spent nuclear fuel 
H15  14 generated by commercial nuclear power facilities and high-level 
H15  15 radioactive waste from defense facilities. OCRWM was established to 
H15  16 carry out this mission. OCRWM is developing a transportation system 
H15  17 to support shipping of spent nuclear fuel to a Monitored 
H15  18 Retrievable Storage (MRS) facility, and spent nuclear fuel and 
H15  19 high-level radioactive waste to a final disposal repository.<p/>
H15  20 <p_>A 1987 amendment to the NWPA added Section 180(c) which states 
H15  21 that DOE:<p/>
H15  22 <p_><quote_>...shall provide technical assistance and funds to 
H15  23 States for training for public safety officials of appropriate 
H15  24 units of local government and Indian Tribes through whose 
H15  25 jurisdiction the Secretary [of Energy] plans to transport spent 
H15  26 nuclear fuel or high-level radioactive waste .... Training shall 
H15  27 cover procedures required for safe routine transportation of these 
H15  28 materials, as well as procedures for dealing with emergency 
H15  29 response situations.<quote_><p/>
H15  30 <p_>Passage of Section 180(c) committed OCRWM to provide funding 
H15  31 for training and technical assistance for public safety officials. 
H15  32 OCRWM stated it will use a phased approach to deliver the 
H15  33 assistance. In the 1991 Draft Mission Plan Amendment, OCRWM 
H15  34 committed to define workable mechanisms for administering technical 
H15  35 assistance. Assistance will initially be for shipments to an MRS, 
H15  36 if an MRS site has been identified. OCRWM will begin providing 
H15  37 training assistance between 1993 and 1995 to jurisdictions along 
H15  38 the initial corridors from the utilities to an MRS; and make 
H15  39 adjustments and support retraining as needed, after 1995.<p/>
H15  40 <p_>This draft strategy represents a five-step process to meet the 
H15  41 requirements of Section 180(c). The steps are: (1) continue current 
H15  42 efforts with the interested groups to identify and discuss funding 
H15  43 and technical assistance issues; (2) develop a Policy Options Paper 
H15  44 to identify possible Section 180(c) implementation processes; (3) 
H15  45 issue a policy statement identifying the option selected; (4) issue 
H15  46 a plan detailing the implementation process; and (5) initiate 
H15  47 funding for 'training assistance.' For brevity, the term 'training 
H15  48 assistance' is used to mean 'technical assistance and funds to 
H15  49 States for training for public safety officials of appropriate 
H15  50 units of local government and Indian Tribes through whose 
H15  51 jurisdiction the Secretary [of Energy] plans to transport spent 
H15  52 nuclear fuel or high-level radioactive waste.'<p/>
H15  53 <p_>A notice of the availability of this draft for review by 
H15  54 Federal agencies, States, Indian Tribes, and interested parties 
H15  55 will be published in the <tf_>Federal Register<tf/>. The comments 
H15  56 received will be fully considered and will be reflected, where 
H15  57 appropriate, in the final strategy. All comments will be catalogued 
H15  58 and their disposition explained in writing.<p/>
H15  59 <h_><p_>1.2 Scope<p/><h/>
H15  60 <p_>This document presents the five-step process for OCRWM to 
H15  61 develop an implementation plan to meet the requirements of Section 
H15  62 180(c). The introductory section includes information on the 
H15  63 purpose of the Strategy; the legal requirements of the NWPA with 
H15  64 respect to technical assistance and funding to train transportation 
H15  65 corridor and host governments for safe routine transportation and 
H15  66 emergency response, and the relevant sections of the Hazardous 
H15  67 Materials Transportation Uniform Safety Act of 1990 (HMTUSA); 
H15  68 planning principles that address or incorporate recommendations 
H15  69 repeated most often by interested parties; and a proposed 
H15  70 schedule.<p/>
H15  71 <p_>The subsequent section, Issue Identification as an Interactive 
H15  72 Process, describes the methods and means OCRWM has employed to 
H15  73 ensure that all interested and potentially affected parties can 
H15  74 have an appropriate predecisional role in the development of 
H15  75 Section 180(c) policy. The three remaining sections delineate the 
H15  76 steps to provide training assistance.<p/>
H15  77 <p_>Accompanying the Strategy are lists of definitions and acronyms 
H15  78 in common usage throughout the document, and general references.<p/>
H15  79 <h_><p_>1.3 Legal Requirements<p/><h/>
H15  80 <p_>The NWPA contains provisions regarding technical assistance and 
H15  81 funding for training relating to transportation for both host and 
H15  82 corridor jurisdictions. Assistance provisions mandated by Section 
H15  83 180(c) apply to corridor States and Indian Tribes through whose 
H15  84 jurisdictions spent fuel and high-level waste are transported to an 
H15  85 MRS or repository. For corridor Indian Tribes 
H15  86 <}_><-|>though<+|>through<}/> whose jurisdictions DOE will 
H15  87 transport spent nuclear fuel and high-level waste, DOE will provide 
H15  88 direct funding to Indian Tribes as sovereign Nations.<p/>
H15  89 <p_>For a State or Indian Tribe that will host a repository, 
H15  90 Section 116(c) provides for financial assistance to the State, and 
H15  91 Section 118(b) insures financial assistance to an Indian Tribe, to 
H15  92 participate in <quote_>"activities required by Sections 116 and 117 
H15  93 or authorized by written agreement entered into pursuant to 
H15  94 subsection 117(c)."<quote/> Section 117(c) of the NWPA states that 
H15  95 OCRWM will work with a State [or Indian Tribe] where a repository 
H15  96 is being constructed and with <quote_>"the units of general local 
H15  97 government in the vicinity of the repository site, in resolving the 
H15  98 offsite concerns ... arising from accidents, necessary road 
H15  99 upgrading and access to the site, ongoing emergency preparedness 
H15 100 and emergency response, monitoring of transportation of high-level 
H15 101 radioactive waste and spent nuclear fuel..."<quote/> under written 
H15 102 agreement.<p/>
H15 103 <p_>For a State or Indian Tribe who will host an MRS facility, 
H15 104 Section 149 of the NWPA extends the same <quote_>"provisions of 
H15 105 Section 116(c) or 118(b) with respect to grants, technical 
H15 106 assistance, and other financial assistance...to the state, to 
H15 107 affected Indian Tribes and to affected units of local 
H15 108 government...in the same manner as for a repository."<quote/><p/>
H15 109 <p_>Section 403(d)(1) and (2) of the NWPA provides that training 
H15 110 assistance for an MRS or repository host State or Indian Tribe 
H15 111 would be through an agreement submitted by the Nuclear Waste 
H15 112 Negotiator to Congress <quote_>"...and shall contain such 
H15 113 provisions as are necessary to preserve any right to participation 
H15 114 or compensation of such State, unit of local government, or Indian 
H15 115 Tribe under Sections 116(c), 117, and 118(b)."<quote/><p/>
H15 116 <p_>If DOE is unable to reach any agreement with the repository or 
H15 117 MRS host State or Indian Tribe under these sections, DOE shall 
H15 118 develop a policy to provide training assistance for emergency 
H15 119 response and safe routine transportation for a host State or Indian 
H15 120 Tribe within the scope of Section 180(c) training assistance.<p/>
H15 121 <p_>The recently passed HMTUSA amended the Hazardous Materials 
H15 122 Transportation Act of 1974. HMTUSA has emergency response and 
H15 123 Federal inspection provisions that have potential implications for 
H15 124 the technical assistance and funding required by Section 180(c).<p/>
H15 125 <p_>Section 17 of HMTUSA authorizes Federal funding for: 1) 
H15 126 planning grants to States to develop emergency response plans; 2) 
H15 127 training grants to States and Indian Tribes for training official 
H15 128 personnel in hazardous materials emergency response; 3) curriculum 
H15 129 development by a Federal committee to develop a list of courses, 
H15 130 recommend courses of study and minimum hours of instruction, and 
H15 131 develop appropriate emergency response training and planning for 
H15 132 non-Federal Government and Tribal employees under other Federal 
H15 133 grant programs; and 4) monitoring and technical assistance through 
H15 134 the Federal Emergency Management Agency, in coordination with four 
H15 135 other agencies including DOE, for non-Federal Government and Tribal 
H15 136 emergency response training and planning. HMTUSA also requires that 
H15 137 Federal departments, agencies, and instrumentalities coordinate to 
H15 138 minimize duplication of effort and expense in all emergency 
H15 139 response and preparedness training programs.<p/>
H15 140 <p_>Section 16 of HMTUSA directs the Secretary of Transportation 
H15 141 (DOT) to employ 30 additional hazardous materials inspectors, 
H15 142 including 10 of whom are to focus on promoting safety in the 
H15 143 transportation of radioactive materials.<p/>
H15 144 <p_>In order to ensure cooperation between DOT and DOE in 
H15 145 implementing both Section 180(c) and the relevant sections of 
H15 146 HMTUSA, DOE is represented on the HMTUSA Interagency Coordination 
H15 147 Group (ICG), and will coordinate with the ICG through the DOE 
H15 148 State, Tribal, and Local Working Group on Transportation Emergency 
H15 149 Preparedness.<p/>
H15 150 <h_><p_>1.4 Planning Principles<p/><h/>
H15 151 <p_>In carrying out the requirements to provide technical 
H15 152 assistance and funds for training, OCRWM is committed to an open 
H15 153 dialogue with all interested parties. Interested parties have 
H15 154 repeatedly requested that OCRWM include the following in its 
H15 155 implementation of Section 180(c). OCRWM is committed to fulfilling 
H15 156 these requests.<p/>
H15 157 <p_><*_>bullet<*/>OCRWM will strive to develop a program with 
H15 158 enough flexibility to accommodate the wide variety of State, 
H15 159 Tribal, and local assistance needs.<p/>
H15 160 <p_><*_>bullet<*/>OCRWM training assistance will be integrated into 
H15 161 current established Federal, State, and Tribal training assistance 
H15 162 structures.<p/>
H15 163 <p_><*_>bullet<*/>OCRWM will integrate its Section 180(c) planning 
H15 164 with current DOT HMTUSA planning functions and rulemakings, where 
H15 165 possible.<p/>
H15 166 <p_><*_>bullet<*/>OCRWM will seek input from the diverse and 
H15 167 broadly representative sources using a cooperative approach.<p/>
H15 168 <p_><*_>bullet<*/>OCRWM recognizes that diverse interested groups 
H15 169 can make contributions to the decision-making process. OCRWM will 
H15 170 seek input in particular from representatives of transportation 
H15 171 corridor jurisdictions who will be directly impacted by NWPA 
H15 172 shipments.<p/>
H15 173 <h_><p_>1.5 Schedule<p/><h/>
H15 174 <p_>A proposed schedule for OCRWM to provide training assistance 
H15 175 for public officials is shown in Figure 1. The Section 180(c) 
H15 176 strategy will be flexible enough to accommodate changes in OCRWM 
H15 177 program schedule. Opportunities for ample interaction and 
H15 178 predecisional input from interested parties and the public have 
H15 179 been factored into the schedule. Current planning assumes that 
H15 180 OCRWM will accept spent fuel for shipping to an MRS in 1998. Prior 
H15 181 to 1994, OCRWM should be able to predict whether an MRS will be 
H15 182 available to receive shipments, and thus plan for training to 
H15 183 begin. Training assistance will depend on the location of an MRS 
H15 184 facility and the spent fuel acceptance schedule.<p/>
H15 185 <h_><p_>2. ISSUE IDENTIFICATION: AN INTERACTIVE PROCESS<p/><h/>
H15 186 <p_>Section 180(c) training assistance is of particular interest to 
H15 187 the State, Tribal, and local governments. OCRWM has utilized a 
H15 188 cooperative approach to identify, discuss, and resolve planning 
H15 189 issues to provide a viable training assistance program strategy.<p/>
H15 190 <h_><p_>2.1 Activities to Date<p/><h/>
H15 191 <p_>After the enactment of the NWPA in 1982, OCRWM initiated a 
H15 192 dialogue with interested parties to identify and resolve issues 
H15 193 related to OCRWM shipment planning. Interested parties included 
H15 194 Federal, State, and Tribal governments; the nuclear power 
H15 195 utilities; the transportation industry; special interest groups; 
H15 196 the media; and the public. OCRWM was able to use these interactions 
H15 197 to identify issues and formalize a resolution process. OCRWM 
H15 198 published its <tf_>Transportation Institutional Plan<tf/> (TIP) in 
H15 199 1986. The TIP identified emergency response, inspection, and 
H15 200 enforcement issues, and provided a foundation for issue discussion 
H15 201 and resolution processes that proved instrumental to developing 
H15 202 this Strategy document.<p/>
H15 203 <p_>The process to evaluate and resolve issues comprises continued 
H15 204 identification, coordination, research, and resolution of issues 
H15 205 using a combination of DOE policies and studies, work with regional 
H15 206 and national groups of States, Indian Tribes and technical 
H15 207 organizations, and interactions with interested parties.<p/>
H15 208 <p_>With the passage of Section 180(c) in 1987, the commitments 
H15 209 OCRWM had initiated regarding emergency response, inspection, and 
H15 210 enforcement, became mandates. OCRWM began planning to provide 
H15 211 training assistance, and resolve issues discussed in the TIP. As 
H15 212 stated above, issues regarding emergency response, inspection, 
H15 213 enforcement, and the implementation of Section 180(c) were 
H15 214 identified through a variety of program activities with interested 
H15 215 parties. These issues as stated in the TIP and discussed at TCG 
H15 216 meetings include OCRWM's need to:<p/>
H15 217 <p_><*_>bullet<*/>Define roles and responsibilities<p/>
H15 218 <p_><*_>bullet<*/>Define potential emergency situations<p/>
H15 219 <p_><*_>bullet<*/>Define the appropriate emergency actions to be 
H15 220 taken by the first responders<p/>
H15 221 <p_><*_>bullet<*/>Develop a set of inspection criteria<p/>
H15 222 <p_><*_>bullet<*/>Develop a system for inspections<p/>
H15 223 <p_><*_>bullet<*/>Determine training needs by assessing existing 
H15 224 training programs<p/>
H15 225 <p_><*_>bullet<*/>Determine the definition of assistance<p/>
H15 226 <p_><*_>bullet<*/>Determine eligibility for assistance<p/>
H15 227 <p_><*_>bullet<*/>Assess potential funding and assistance 
H15 228 mechanisms<p/>
H15 229 <p_><*_>bullet<*/>Explore the desirability of a training 
H15 230 certification or standards process<p/>
H15 231 <p_><*_>bullet<*/>Determine an approach to the timing of training 
H15 232 assistance<p/>
H15 233 <p_>Additional issues may be identified through the resolution 
H15 234 process and through interactions with interested parties.<p/>
H15 235 <h_><p_>2.2 Issue Resolution Mechanisms<p/><h/>
H15 236 <p_>OCRWM and the interested parties are working together to 
H15 237 develop an efficient plan to provide training assistance to States, 
H15 238 Indian Tribes, and local governments. Some of the mechanisms that 
H15 239 currently provide forums for communication, issue identification 
H15 240 and resolution, and policy development include: OCRWM cooperative 
H15 241 agreements with national, regional, and technical groups; the 
H15 242 Transportation Coordination Group (TCG); the HMTUSA Interagency 
H15 243 Coordination Group; the Federal Radiological Preparedness 
H15 244 Coordinating Committee; and the Commercial Vehicle Safety 
H15 245 Alliance.<p/>
H15 246 <p_>Working groups are a significant communication mechanism. An 
H15 247 informal working group met following a TCG meeting in July 1989, to 
H15 248 discuss a rough outline of this strategy document.
H15 249 
H16   1 <#FROWN:H16\>It is equally clear that a State might temper such an 
H16   2 'any county' rule to the extent a reasonable assessment of 
H16   3 defendants' interests so justified.<p/>
H16   4 <p_>Here, Montana has decided that the any-county rule should give 
H16   5 way to a single-county rule where a defendant resides in Montana, 
H16   6 arguably on the reasonable ground that a defendant should not be 
H16   7 subjected to a plaintiff's tactical advantage of forcing a trial 
H16   8 far from the defendant's residence. At the same time, Montana has 
H16   9 weighed the interest of a defendant who does not reside in Montana 
H16  10 differently, arguably on the equally reasonable ground that for 
H16  11 most nonresident defendants the inconvenience will be great whether 
H16  12 they have to defend in, say, Billings or Havre. See <tf_>Power 
H16  13 Manufacturing Co.<tf/> v. <tf|>Saunders, 274 U.S. 490, 498 (1927) 
H16  14 (Holmes, J., dissenting). Montana could thus have decided that a 
H16  15 nonresident defendant's interest in convenience is too slight to 
H16  16 outweigh the plaintiff's interest in suing in the forum of his 
H16  17 choice.<p/>
H16  18 <p_>Burlington does not, indeed, seriously contend that such a 
H16  19 decision is constitutionally flawed as applied to individual 
H16  20 nonresident defendants. Nor does it argue that such a rule is 
H16  21 unconstitutional even when applied to corporate defendants without 
H16  22 a fixed place of business in Montana. Burlington does claim, 
H16  23 however, that the rule is unconstitutional as applied to a 
H16  24 corporate defendant like Burlington that not only has its home 
H16  25 office in some other State or country, but also has a place of 
H16  26 business in Montana that would qualify as its 'principal place of 
H16  27 business' if it were a Montana corporation.<p/>
H16  28 <p_>Burlington's claim fails. Montana could reasonably have 
H16  29 determined that a corporate defendant's home office is generally of 
H16  30 greater significance to the corporation's convenience in litigation 
H16  31 than its other offices, that foreign corporations are unlikely to 
H16  32 have their principal offices in Montana, and that Montana's 
H16  33 domestic corporations will probably keep headquarters within the 
H16  34 State. We cannot say, at least not on this record, that any of 
H16  35 these assumptions is irrational. Cf. <tf_>G. D. Searle & Co.<tf/> 
H16  36 v. <tf|>Cohn, 455 U.S. 404, 410 (1982); <tf_>Metropolitan Casualty 
H16  37 Ins. Co.<tf/> v. <tf|>Brownell, 294 U.S. 580, 585 (1935). And upon 
H16  38 them Montana may have premised the policy judgment, which we find 
H16  39 constitutionally unimpeachable, that only the convenience to a 
H16  40 corporate defendant of litigating in the county containing its home 
H16  41 office is sufficiently significant to outweigh a plaintiff's 
H16  42 interest in suing in the county of his choice.<p/>
H16  43 <p_>Of course Montana's venue rules would have implemented that 
H16  44 policy judgment with greater precision if they had turned on the 
H16  45 location of a corporate defendant's principal place of business, 
H16  46 not on its State of incorporation. But this is hardly enough to 
H16  47 make the rules fail rational-basis review, for <quote_>"rational 
H16  48 distinctions may be made with substantially less than mathematical 
H16  49 exactitude."<quote/> <tf_>New Orleans<tf/> v. <tf|>Dukes, 427 U.S. 
H16  50 297, 303 (1976); see <tf|>Hughes v. <tf_>Alexandria Scrap 
H16  51 Corp.<tf/>, 426 U.S. 794, 814 (1976); <tf|>Lindsley v. <tf_>Natural 
H16  52 Carbonic Gas Co.<tf/>, 220 U.S. 61, 78 (1911). Montana may 
H16  53 reasonably have thought that the location of a corporate 
H16  54 defendant's principal place of business would not be as readily 
H16  55 verifiable as its State of incorporation, that a rule hinging on 
H16  56 the former would invite wasteful sideshows of venue litigation, and 
H16  57 that obviating the sideshows would be worth the loss in precision. 
H16  58 These possibilities, of course, put Burlington a far cry away from 
H16  59 the point of discharging its burden of showing that the 
H16  60 underinclusiveness and overinclusiveness of Montana's venue rules 
H16  61 is so great that the rules can no longer be said rationally to 
H16  62 implement Montana's policy judgment. See, <tf_>e.g., Brownell, 
H16  63 supra<tf/>, at 584. Besides, Burlington, having headquarters 
H16  64 elsewhere, would not benefit even from a scheme based on domicile, 
H16  65 and is therefore in no position to complain of Montana's using 
H16  66 State of incorporation as a surrogate for domicile. See 
H16  67 <tf_>Roberts & Schaefer Co.<tf/> v. <tf|>Emmerson, 271 U.S. 50, 
H16  68 53-55 (1926); cf. <tf_>United States<tf/> v. <tf|>Raines, 362 U.S. 
H16  69 17, 21 (1960).<p/>
H16  70 <p_>Burlington is left with the argument that <tf_>Power 
H16  71 Manufacturing Co.<tf/> v. <tf_>Saunders, supra<tf/>, controls this 
H16  72 case. But it does not. In <tf|>Saunders, we considered Arkansas' 
H16  73 venue rules, which restricted suit against a domestic corporation 
H16  74 to those counties where it maintained a place of business, 274 
H16  75 U.S., at 491-492, but exposed foreign corporations to suit in any 
H16  76 county, <tf|>id. at 492. We held that the distinction lacked a 
H16  77 rational basis and therefore deprived foreign corporate defendants 
H16  78 of the equal protection of the laws. <tf|>Id., at 494. The 
H16  79 statutory provision challenged in <tf|>Saunders, however, applied 
H16  80 only to foreign corporations authorized to do business in Arkansas, 
H16  81 <tf|>ibid., so that most of the corporations subject to its 
H16  82 any-county rule probably had a place of business in Arkansas. In 
H16  83 contrast, most of the corporations subject to Montana's any-county 
H16  84 rule probably do not have their principal place of business in 
H16  85 Montana. Thus, Arkansas' special rule for foreign corporations was 
H16  86 tailored with significantly less precision than Montana's, and, on 
H16  87 the assumption that <tf|>Saunders is still good law, see 
H16  88 <tf_>American Motorists Ins. Co.<tf/> v. <tf|>Starnes, 425 U.S. 
H16  89 637, 645, n. 6 (1976), its holding does not invalidate Montana's 
H16  90 venue rules.<p/>
H16  91 <p_>In sum, Montana's venue rules can be understood as rationally 
H16  92 furthering a legitimate state interest. The judgment of the Supreme 
H16  93 Court of Montana is accordingly<p/>
H16  94 <p_><tf|>Affirmed.<p/>
H16  95 <h_><p_>UNITED STATES <tf|>v. ALVAREZ-MACHAIN<p/>
H16  96 <p_>CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH 
H16  97 CIRCUIT<p/>
H16  98 <p_>No. 91-712. Argued April 1, 1992 -Decided June 15, 1992<p/><h/>
H16  99 <p_>Respondent, a citizen and resident of Mexico, was forcibly 
H16 100 kidnaped<&|>sic! from his home and flown by private plane to Texas, 
H16 101 where he was arrested for his participation in the 
H16 102 kidnaping<&|>sic! and murder of a Drug Enforcement Administration 
H16 103 (DEA) agent and the agent's pilot. After concluding that DEA agents 
H16 104 were responsible for the abduction, the District Court dismissed 
H16 105 the indictment on the ground that it violated the Extradition 
H16 106 Treaty between the United States and Mexico (Extradition Treaty or 
H16 107 Treaty), and ordered respondent's repatriation. The Court of 
H16 108 Appeals affirmed. Based on one of its prior decisions, the court 
H16 109 found that, since the United States had authorized the abduction 
H16 110 and since the Mexican Government had protested the Treaty 
H16 111 violation, jurisdiction was improper.<p/>
H16 112 <p_><tf|>Held: The fact of respondent's forcible abduction does not 
H16 113 prohibit his trial in a United States court for violations of this 
H16 114 country's criminal laws. Pp. 659-670.<p/>
H16 115 <p_>(a) A defendant may not be prosecuted in violation of the terms 
H16 116 of an extradition treaty. <tf_>United States<tf/> v. <tf|>Rauscher, 
H16 117 119 U.S. 407. However, when a treaty has not been invoked, a court 
H16 118 may properly exercise jurisdiction even though the defendant's 
H16 119 presence is procured by means of a forcible abduction. <tf|>Ker v. 
H16 120 <tf|>Illinois, 119 U.S. 436. Thus, if the Extradition Treaty does 
H16 121 not prohibit respondent's abduction, the rule of <tf|>Ker applies 
H16 122 and jurisdiction was proper. Pp. 659-662.<p/>
H16 123 <p_>(b) Neither the Treaty's language nor the history of 
H16 124 negotiations and practice under it supports the proposition that it 
H16 125 prohibits abductions outside of its terms. The Treaty says nothing 
H16 126 about either country refraining from forcibly abducting people from 
H16 127 the other's territory or the consequences if an abduction occurs. 
H16 128 In addition, although the Mexican Government was made aware of the 
H16 129 <tf|>Ker doctrine as early as 1906, and language to curtail 
H16 130 <tf|>Ker was drafted as early as 1935, the Treaty's current version 
H16 131 contains no such clause. Pp. 663-666.<p/>
H16 132 <p_>(c) General principles of international law provide no basis 
H16 133 for interpreting the Treaty to include an implied term prohibiting 
H16 134 international abductions. It would go beyond established precedent 
H16 135 and practice to draw such an inference form the treaty based on 
H16 136 respondent's argument that abductions are so clearly prohibited in 
H16 137 international law that there was no reason to include the 
H16 138 prohibition in the Treaty itself. It was the practice of nations 
H16 139 with regard to extradition treaties that formed the basis for this 
H16 140 Court's decision in <tf_>Rauscher, supra<tf/>, to imply a term in 
H16 141 the extradition treaty between the United States and England. 
H16 142 Respondent's argument, however, would require a much larger 
H16 143 inferential leap with only the most general of international law 
H16 144 principles to support it. While respondent may be correct that his 
H16 145 abduction was 'shocking' and in violation of general international 
H16 146 law principles, the decision whether he should be returned to 
H16 147 Mexico, as a matter outside the Treaty, is a matter for the 
H16 148 Executive Branch. Pp. 666-670.<p/>
H16 149 <p_>946 F. 2d 1466, reversed and remanded.<p/>
H16 150 <p_>REHNQUIST, C.J., delivered the opinion of the court, in which 
H16 151 WHITE; SCALIA; KENNEDY; SOUTER, and THOMAS, JJ., joined. STEVENS, 
H16 152 J., filed a dissenting opinion, in which BLACKMUN and O'CONNOR, 
H16 153 JJ., joined, <tf|>post, p. 670.<p/>
H16 154 <p_><tf_>Solicitor General Starr<tf/> argued the cause for the 
H16 155 United States. With him on the briefs were <tf_>Assistant Attorney 
H16 156 General Mueller, Deputy Solicitor General Bryson, Michael R. 
H16 157 Dreeben,<tf/> and <tf_>Kathleen A. Felton<tf/>.<p/>
H16 158 <p_><tf_>Paul L. Hoffman<tf/> argued the cause for respondent. With 
H16 159 him on the brief were <tf_>Ralph G. Steinhardt, Robin S. Toma, Mark 
H16 160 D. Rosenbaum, John A. Powell, Steven R. Shapiro, Kate Martin,<tf/> 
H16 161 and <tf_>Robert Steinberg<tf/>.<p/>
H16 162 <p_>CHIEF JUSTICE REHNQUIST delivered the opinion of the Court.<p/>
H16 163 <p_>The issue in this case is whether a criminal defendant, 
H16 164 abducted to the United States from a nation with which it has an 
H16 165 extradition treaty, thereby acquires a defense to the jurisdiction 
H16 166 of this country's courts. We hold that he does not, and that he may 
H16 167 be tried in federal district court for violations of the criminal 
H16 168 law of the United States.<p/>
H16 169 <p_>Respondent, Humberto Alvarez-Machain, is a citizen and resident 
H16 170 of Mexico. He was indicted for participating in the kidnap and 
H16 171 murder of United States Drug Enforcement Administration (DEA) 
H16 172 special agent Enrique Camarena-Salazar and a Mexican pilot working 
H16 173 with Camarena, Alfredo Zavala-Avelar. The DEA believes that 
H16 174 respondent, a medical doctor, participated in the murder by 
H16 175 prolonging Agent Camarena's life so that others could further 
H16 176 torture and interrogate him. On April 2, 190, respondent was 
H16 177 forcibly kidnaped<&|>sic! from his medical office in Guadalajara, 
H16 178 Mexico, to be flown by private plane to El Paso, Texas, where he 
H16 179 was arrested by DEA officials. The District Court concluded that 
H16 180 DEA agents were responsible for respondent's abduction, although 
H16 181 they were not personally involved in it. <tf_>United States<tf/> v. 
H16 182 <tf|>Caro-Quintero, 745 F. Supp. 599, 602-604, 609 (CD Cal. 
H16 183 1990).<p/>
H16 184 <p_>Respondent moved to dismiss the indictment, claiming that his 
H16 185 abduction constituted outrageous governmental conduct, and that the 
H16 186 District Court lacked jurisdiction to try him because he was 
H16 187 abducted in violation of the extradition treaty between the United 
H16 188 States and Mexico. Extradition Treaty, May 4, 1978, [1979] United 
H16 189 States-United Mexican States, 31 U.S.T. 5059, T.I.A.S. No. 9656 
H16 190 (Extradition Treaty or Treaty). The District Court rejected the 
H16 191 outrageous governmental conduct claim, but held that it lacked 
H16 192 jurisdiction to try respondent because his abduction violated the 
H16 193 Extradition Treaty. The District Court discharged respondent and 
H16 194 ordered that he be repatriated to Mexico. 745 F. Supp., at 614.<p/>
H16 195 <p_>The Court of Appeals affirmed the dismissal of the indictment 
H16 196 and the repatriation of respondent, relying on its decision in 
H16 197 <tf_>United States<tf/> v. <tf|>Verdugo-Urquidez, 939 F. 2d 1341 
H16 198 (CA9 1991), cert. pending, No. 91-670. 946 F. 2d 1466 (1991). In 
H16 199 <tf|>Verdugo, the Court of Appeals held that the forcible abduction 
H16 200 of a Mexican national with the authorization or participation of 
H16 201 the United States violated the Extradition Treaty between the 
H16 202 United States and Mexico. Although the Treaty does not expressly 
H16 203 prohibit such abductions, the Court of Appeals held that the 
H16 204 'purpose' of the Treaty was violated by a forcible abduction, 939 
H16 205 F. 2d, at 1350, which, along with a formal protest by the offended 
H16 206 nation, would give a defendant the right to invoke the Treaty 
H16 207 violation to defeat jurisdiction of the District Court to try him. 
H16 208 The Court of Appeals further held that the proper remedy for such a 
H16 209 violation would be dismissal of the indictment and repatriation of 
H16 210 the defendant to Mexico.<p/>
H16 211 <p_>In the instant case, the Court of Appeals affirmed the District 
H16 212 Court's finding that the United States had authorized the abduction 
H16 213 of respondent, and that letters from the Mexican Government to the 
H16 214 United States Government served as an official protest of the 
H16 215 Treaty violation. Therefore, the Court of Appeals ordered that the 
H16 216 indictment against respondent be dismissed and that respondent be 
H16 217 repatriated to Mexico. 946 F. 2d, at 1467. We granted certiorari, 
H16 218 502 U.S. 1024 (1992), and now reverse.<p/>
H16 219 
H17   1 <#FROWN:H17\>The fact of respondent's forcible abduction does not 
H17   2 therefore prohibit his trial in a court in the United States for 
H17   3 violations of the criminal laws of the United States.<p/>
H17   4 <p_>The judgment of the Court of Appeals is therefore reversed, and 
H17   5 the case is remanded for further proceedings consistent with this 
H17   6 opinion.<p/>
H17   7 <p_><tf_>So ordered.<tf/><p/>
H17   8 <p_>JUSTICE STEVENS, with whom JUSTICE BLACKMUN and JUSTICE 
H17   9 O'CONNOR join, dissenting.<p/>
H17  10 <p_>The Court correctly observes that this case raises a question 
H17  11 of first impression. See <tf|>ante, at 659. The case is unique for 
H17  12 several reasons. It does not involve an ordinary abduction by a 
H17  13 private kidnaper, or bounty hunter, as in <tf|>Ker v. 
H17  14 <tf|>Illinois, 119 U.S. 436 (1886); nor does it involve the 
H17  15 apprehension of an American fugitive who committed a crime in one 
H17  16 State and sought asylum in another, as in <tf|>Frisbie v. 
H17  17 <tf|>Collins, 342 U.S. 519 (1952). Rather, it involves this 
H17  18 country's abduction of another country's citizen; it also involves 
H17  19 a violation of the territorial integrity of that other country, 
H17  20 with which this country has signed an extradition treaty.<p/>
H17  21 <p_>A Mexican citizen was kidnaped in Mexico and charged with a 
H17  22 crime committed in Mexico; his offense allegedly violated both 
H17  23 Mexican and American law. Mexico has formally demanded on at least 
H17  24 two separate occasions that he be returned to Mexico and has 
H17  25 represented that he will be prosecuted and, if convicted, punished 
H17  26 for his offense. It is clear that Mexico's demand must be honored 
H17  27 if this official abduction violated the 1978 Extradition Treaty 
H17  28 between the United States and Mexico. In my opinion, a fair reading 
H17  29 of the treaty in light of our decision in <tf_>United States<tf/> 
H17  30 v. <tf|>Rauscher, 119 U.S. 407 (1886), and applicable principles of 
H17  31 international law, leads inexorably to the conclusion that the 
H17  32 District Court, <tf_>United States<tf/> v. <tf|>Caro-Quintero, 745 
H17  33 F. Supp. 599 (CD Cal. 1990), and the Court of Appeals for the Ninth 
H17  34 Circuit, 946 F. 2d 1466 (1991) <tf_>(per curiam)<tf/>, correctly 
H17  35 construed that instrument.<p/>
H17  36 <h|>I
H17  37 <p_>The extradition treaty with Mexico is a comprehensive document 
H17  38 containing 23 articles and an appendix listing the extraditable 
H17  39 offenses covered by the agreement. The parties announced their 
H17  40 purpose in the preamble: The two governments desire <quote_>"to 
H17  41 cooperate more closely in the fight against crime and, to this end, 
H17  42 to mutually render better assistance in matters of 
H17  43 extradition."<quote/> From the preamble, through the description of 
H17  44 the parties' obligations with respect to offenses committed within 
H17  45 as well as beyond the territory of a requesting party, the 
H17  46 delineation of the procedures and evidentiary requirements for 
H17  47 extradition, the special provisions for political offenses and 
H17  48 capital punishment, and other details, the Treaty appears to have 
H17  49 been designed to cover the entire subject of extradition. Thus, 
H17  50 Article 22, entitled 'Scope of Application,' states that the 
H17  51 <quote_>"Treaty shall apply to offenses specified in Article 2 
H17  52 committed before and after this Treaty enters into force,"<quote/> 
H17  53 and Article 2 directs that <quote_>"[e]xtradition shall take place, 
H17  54 subject to this Treaty, for willful acts which fall within any of 
H17  55 [the extraditable offenses listed in] the clauses of the 
H17  56 Appendix."<quote/> Moreover, as noted by the Court, <tf|>ante, at 
H17  57 663, Article 9 expressly provides that neither contracting party is 
H17  58 bound to deliver up its own nationals, although it may do so in its 
H17  59 discretion, but if it does not do so, it <quote_>"shall submit the 
H17  60 case to its competent authorities for purposes of 
H17  61 prosecution."<quote/><p/>
H17  62 <p_>Petitioner's claim that the Treaty is not exclusive, but 
H17  63 permits forcible governmental kidnaping, would transform these, and 
H17  64 other, provisions into little more than verbiage. For example, 
H17  65 provisions requiring <quote|>"sufficient" evidence to grant 
H17  66 extradition (Art. 3), withholding extradition for political or 
H17  67 military offenses (Art. 5), withholding extradition when the person 
H17  68 sought has already been tried (Art. 6), withholding extradition 
H17  69 when the statute of limitations for the crime has lapsed (Art. 7), 
H17  70 and granting the requested State discretion to refuse to extradite 
H17  71 an individual who would face the death penalty in the requesting 
H17  72 country (Art. 8), would serve little purpose if the requesting 
H17  73 country could simply kidnap the person. As the Court of Appeals for 
H17  74 the Ninth Circuit recognized in a related case, <quote_>"[e]ach of 
H17  75 these provisions would be utterly frustrated if a kidnapping were 
H17  76 held to be a permissible course of governmental conduct."<quote/> 
H17  77 <tf_>United States<tf/> v. <tf|>Verdugo-Urquidez, 939 F. 2d 1341, 
H17  78 1349 (1991). In addition, all of these provisions <quote_>"only 
H17  79 make sense if they are understood as <tf|>requiring each treaty 
H17  80 signatory to comply with those procedures whenever it wishes to 
H17  81 obtain jurisdiction over an individual who is located in another 
H17  82 treaty nation."<quote/> <tf|>Id., at 1351.<p/>
H17  83 <p_>It is true, as the Court notes, that there is no express 
H17  84 promise by either party to refrain from forcible abductions in the 
H17  85 territory of the other nation. See <tf|>ante, at 664, 665-666. 
H17  86 Relying on that omission, the Court, in effect, concludes that the 
H17  87 Treaty merely creates an optional method of obtaining jurisdiction 
H17  88 over alleged offenders, and that the parties silently reserved the 
H17  89 right to resort to self-help whenever they deem force more 
H17  90 expeditious than legal process. If the United States, for example, 
H17  91 thought it more expedient to torture or simply to execute a person 
H17  92 rather than to attempt extradition, these options would be equally 
H17  93 available because they, too, were not explicitly prohibited by the 
H17  94 Treaty. That, however, is a highly improbable interpretation of a 
H17  95 consensual agreement, which on its face appears to have been 
H17  96 intended to set forth comprehensive and exclusive rules concerning 
H17  97 the subject of extradition. In my opinion, <quote_>"the manifest 
H17  98 scope and object of the treaty itself,"<quote/> <tf|>Rauscher, 119 
H17  99 U.S., at 422, plainly imply a mutual undertaking to respect the 
H17 100 territorial integrity of the other contracting party. That opinion 
H17 101 is confirmed by a consideration of the <quote_>"legal 
H17 102 context"<quote/> in which the Treaty was negotiated. <tf|>Cannon v. 
H17 103 <tf_>University of Chicago<tf/>, 441 U.S. 677, 699 (1979).<p/>
H17 104 <h|>II
H17 105 <p_>In <tf|>Rauscher, the Court construed an extradition treaty 
H17 106 that was far less comprehensive than the 1978 Treaty with Mexico. 
H17 107 The 1842 treaty with Great Britain determined the boundary between 
H17 108 the United States and Canada, provided for the suppression of the 
H17 109 African slave trade, and also contained one paragraph authorizing 
H17 110 the extradition of fugitives <quote_>"in certain cases."<quote/> 8 
H17 111 Stat. 576. In Article X, each nation agreed to <quote_>"deliver up 
H17 112 to justice all persons"<quote/> properly charged with any one of 
H17 113 seven specific crimes, including murder. 119 U.S., at 421. After 
H17 114 Rauscher had been extradited for murder, he was charged with the 
H17 115 lesser offense of inflicting cruel and unusual punishment on a 
H17 116 member of the crew of a vessel on the high seas. Although the 
H17 117 treaty did not purport to place any limit on the jurisdiction of 
H17 118 the demanding State after acquiring custody of the fugitive, this 
H17 119 Court held that he could not be tried for any offense other than 
H17 120 murder. Thus, the treaty constituted the exclusive means by which 
H17 121 the United States could obtain jurisdiction over a defendant within 
H17 122 the territorial jurisdiction of Great Britain.<p/>
H17 123 <p_>The Court noted that the treaty included several specific 
H17 124 provisions, such as the crimes for which one could be extradited, 
H17 125 the process by which the extradition was to be carried out, and 
H17 126 even the evidence that was to be produced, and concluded that 
H17 127 <quote_>"the fair purpose of the treaty is, that the person shall 
H17 128 be delivered up to be tried for that offence and for no 
H17 129 other."<quote/> <tf|>Id., at 423. The Court reasoned that it did 
H17 130 not make sense for the treaty to provide such specifics only to 
H17 131 have the person <quote_>"pas[s] into the hands of the country which 
H17 132 charges him with the offence, free from all the positive 
H17 133 requirements and just implications of the treaty under which the 
H17 134 transfer of his person takes place."<quote/> <tf|>Id., at 421. To 
H17 135 interpret the treaty in a contrary way would mean that a country 
H17 136 could request extradition of a person for one of the seven crimes 
H17 137 covered by the treaty, and then try the person for another crime, 
H17 138 such as a political crime, which was clearly not covered by the 
H17 139 treaty; this result, the Court concluded, was clearly contrary to 
H17 140 the intent of the parties and the purpose of the treaty.<p/>
H17 141 <p_>Rejecting an argument that the sole purpose of Article X was to 
H17 142 provide a procedure for the transfer of an individual from the 
H17 143 jurisdiction of one sovereign to another, the Court stated:<p/>
H17 144 <p_><quote_>No such view of solemn public treaties between the 
H17 145 great nations of the earth can be sustained by a tribunal called 
H17 146 upon to give judicial construction to them.<p/>
H17 147 <p_>The opposite view has been attempted to be maintained in this 
H17 148 country upon the ground that there is no express limitation in the 
H17 149 treaty of the right of the country in which the offence was 
H17 150 committed to try the person for the crime alone for which he was 
H17 151 extradited, and that once being within the jurisdiction of that 
H17 152 country, no matter by what contrivance or fraud or by what pretence 
H17 153 of establishing a charge provided for by the extradition treaty he 
H17 154 may have been brought within the jurisdiction, he is, when here, 
H17 155 liable to be tried for any offence against the laws as though 
H17 156 arrested here originally. This proposition of the absence of 
H17 157 express restriction in the treaty of the right to try him for other 
H17 158 offences than that for which he was extradited, is met by the 
H17 159 manifest scope and object of the treaty itself.<quote/> <tf|>Id., 
H17 160 at 422.<p/>
H17 161 <p_>Thus, the Extradition Treaty, as understood in the context of 
H17 162 cases that have addressed similar issues, suffices to protect the 
H17 163 defendant from prosecution despite the absence of any express 
H17 164 language in the Treaty itself purporting to limit this Nation's 
H17 165 power to prosecute a defendant over whom it had lawfully acquired 
H17 166 jurisdiction.<p/>
H17 167 <p_>Although the Court's conclusion in <tf|>Rauscher was supported 
H17 168 by a number of judicial precedents, the holdings in these cases 
H17 169 were not nearly as uniform as the consensus of international 
H17 170 opinion that condemns one nation's violation of the territorial 
H17 171 integrity of a friendly neighbor. It is shocking that a party to an 
H17 172 extradition treaty might believe that it has secretly reserved the 
H17 173 right to make seizures of citizens in the other party's territory. 
H17 174 Justice Story found it shocking enough that the United States would 
H17 175 attempt to justify an American seizure of a foreign vessel in a 
H17 176 Spanish port:<p/>
H17 177 <p_><quote_>But, even supposing, for a moment, that our laws had 
H17 178 required an entry of The Apollon, in her transit, does it follow 
H17 179 that the power to arrest her was meant to be given, after she had 
H17 180 passed into the exclusive territory of a foreign nation? We think 
H17 181 not. <tf_>It would be monstrous<tf/> to suppose that our revenue 
H17 182 officers were authorized to enter into foreign ports and 
H17 183 territories, for the purpose of seizing vessels which had offended 
H17 184 against our laws. It cannot be presumed that congress would 
H17 185 voluntarily justify such a clear violation of the laws of 
H17 186 nations.<quote/> <tf_>The Apollon<tf/>, 9 Wheat. 362, 370-371 
H17 187 (1824) (emphasis added).<p/>
H17 188 <p_>The law of nations, as understood by Justice Story in 1824, has 
H17 189 not changed. Thus, a leading treatise explains:<p/>
H17 190 <p_><quote_>A State must not perform acts of sovereignty in the 
H17 191 territory of another State.<p/>
H17 192 <p_>It is ... a breach of International Law for a State to send its 
H17 193 agents to the territory of another State to apprehend persons 
H17 194 accused of having committed a crime. Apart from other satisfaction, 
H17 195 the first duty of the offending State is to hand over the person in 
H17 196 question to the State in whose territory he was 
H17 197 apprehended.<quote/> 1 Oppenheim's International Law 295, and n. 1 
H17 198 (H. Lauterpacht 8th ed. 1955).<p/>
H17 199 <p_>Commenting on the precise issue raised by this case, the chief 
H17 200 reporter for the American Law Institute's Restatement of Foreign 
H17 201 Relations used language reminiscent of Justice Story's 
H17 202 characterization of an official seizure in a foreign jurisdiction 
H17 203 as <quote|>"monstrous":<p/>
H17 204 <p_><quote_>When done without consent of the foreign government, 
H17 205 abducting a person from a foreign country is a gross violation of 
H17 206 international law and gross disrespect for a norm high in the 
H17 207 opinion of mankind. It is a blatant violation of the territorial 
H17 208 integrity of another state; it eviscerates the extradition system 
H17 209 (established by a comprehensive network of treaties involving 
H17 210 virtually all states).<quote/><p/>
H17 211 
H17 212 
H17 213 
H18   1 <#FROWN:H18\><h_><p_>Topics of Discussion for President's Trip to 
H18   2 Europe<p/>
H18   3 <p_>Secretary Baker<p/>
H18   4 <p_>Opening statement at news conference, the White House, 
H18   5 Washington, DC, July 1, 1992<p/><h/>
H18   6 <p_>Ladies and gentlemen, let me quickly outline some of the 
H18   7 specific topics that the President will be looking to discuss on 
H18   8 his visits to Warsaw, Munich, and Helsinki.<p/>
H18   9 <p_>In Warsaw, the President will attend the repatriation of the 
H18  10 remains of Poland's pre-communist Prime Minister, Paderewski; a 
H18  11 symbolic return to an independent Poland. The President will 
H18  12 reaffirm America's strong support for democracy and economic 
H18  13 freedom in Poland and in Central and Eastern Europe, as a whole. He 
H18  14 will want to discuss the reform process with President Walesa and 
H18  15 explore some new ways that Poland and the international community 
H18  16 can work together to advance these courageous reforms. He will then 
H18  17 be in a position to share these ideas with his G-7 [Group of Seven 
H18  18 industrialized nations] colleagues.<p/>
H18  19 <p_>From Warsaw, the President will travel to Munich, of course, 
H18  20 for the G-7 summit. We hope that this summit will send a pro-growth 
H18  21 message that will reinforce the recoveries already underway in 
H18  22 several G-7 economies, including our own.<p/>
H18  23 <p_>The President's meeting with [Japanese] Prime Minister 
H18  24 Miyazawa, today, allows us to exchange perspectives on the topic of 
H18  25 growth a few days in advance.<p/>
H18  26 <p_>The President will also use the opportunity of the Munich 
H18  27 meeting to determine what further actions may be necessary to cope 
H18  28 with the humanitarian tragedy in Sarajevo. Our view is that we 
H18  29 should work with our friends and allies, particularly in the UN 
H18  30 Security Council, to see that relief supplies are delivered.<p/>
H18  31 <p_>At Munich, the leaders of the G-7 will also be meeting with 
H18  32 [Russian] President Yeltsin as a signal of their strong support for 
H18  33 Russia's bold reforms.<p/>
H18  34 <p_>Building on the Washington summit, President Bush will want to 
H18  35 continue his dialogue with President Yeltsin on further developing 
H18  36 our political partnership. He will also want to hear an update on 
H18  37 the state of Russia's reform program, and he will discuss how we 
H18  38 can work together to move forward with assistance from the IMF 
H18  39 [International Monetary Fund], the World Bank, and bilateral 
H18  40 assistance.<p/>
H18  41 <p_>Finally, as an important item on their collective agenda, the 
H18  42 G-7 leaders will discuss with President Yeltsin the steps we can 
H18  43 take to improve the safety of Soviet-designed nuclear reactors 
H18  44 throughout Eurasia.<p/>
H18  45 <p_>The final stop on the trip will be Helsinki, where the 
H18  46 President will be attending the summit meeting of the Conference on 
H18  47 Security and Cooperation in Europe -CSCE. In 1975, the first 
H18  48 Helsinki summit - Helsinki I - launched the CSCE and promoted the 
H18  49 values and the process that helped transform the shape of Europe 
H18  50 and end the Cold War.<p/>
H18  51 <p_>If Helsinki I helped usher in the final act of a divided 
H18  52 Europe, Helsinki II must help set the stage for a democratic 
H18  53 Eurasia by equipping CSCE to address more effectively the momentous 
H18  54 opportunities and challenges that we face today.<p/>
H18  55 <p_>In particular, CSCE is considering developing enhanced 
H18  56 capacities for conflict prevention and crisis management through 
H18  57 such steps as annual human rights meetings and a CSCE peace-keeping 
H18  58 role that would draw on the capacities of organizations like the 
H18  59 North Atlantic Treaty Organization, the North Atlantic Cooperation 
H18  60 Council, and the Western European Union.<p/>
H18  61 <p_>In addition, in Helsinki, we will lay the foundation for a 
H18  62 stable new European security order by encouraging the quick entry 
H18  63 into force of the CFE [Conventional Armed Forces in Europe] 
H18  64 Treaty.<*_>black-square<*/><p/>
H18  65 
H18  66 <h_><p_>US Policy Toward UNESCO<p/>
H18  67 <p_>John R. Bolton, Assistant Secretary for International 
H18  68 Organization Affairs<p/>
H18  69 <p_>Statement before the Subcommittees on International Operations 
H18  70 and on Human Rights and International Organizations of the House 
H18  71 Foreign Affairs Committee and the Subcommittee on Environment of 
H18  72 the House Science, Space, and Technology Committee, Washington, DC, 
H18  73 June 25, 1992<p/><h/>
H18  74 <p_>I appreciate the opportunity to appear before you to discuss 
H18  75 our policy toward UNESCO [UN Educational, Scientific and Cultural 
H18  76 Organization]. It is particularly timely to do so in the context of 
H18  77 the recently completed GAO [General Accounting Office] report on 
H18  78 the organization's management, administrative, budgetary, and 
H18  79 personnel practices.<p/>
H18  80 <p_>It has been 7 1/2 years since the United States withdrew from 
H18  81 UNESCO because of the organization's excessive politicization, poor 
H18  82 management, and runaway budgets. Since then, we have been working 
H18  83 with our allies, with the Secretariat, and with Director General 
H18  84 Mayor to promote reform. We have maintained a presence at UNESCO 
H18  85 through our Observer Mission, have attended every meeting of the 
H18  86 organization's governing bodies, and have made voluntary 
H18  87 contributions of approximately $2 million per year in support of 
H18  88 selected activities in which we continue to participate.<p/>
H18  89 <p_>We are, consequently, pleased to note that the GAO report 
H18  90 concludes that initial progress has been made in implementing 
H18  91 management reforms. We have reviewed the report and find it a 
H18  92 useful assessment of UNESCO's management practices. The report 
H18  93 states that it is too soon to judge the effectiveness of some 
H18  94 reforms. Knute Hammarskjold and Peter Wilenski, authors of a 1989 
H18  95 study on UNESCO's management, said much the same thing last January 
H18  96 in a follow-up report on the implementation of their 
H18  97 recommendations: <quote_>"Extensive progress in reform has been 
H18  98 made on a broad front but has not yet taken root...."<quote/><p/>
H18  99 <p_>The GAO report states that UNESCO has not solved long-standing 
H18 100 problems with consultants and program evaluation. It makes 12 
H18 101 formal recommendations that address policies for decentralization 
H18 102 of activities and resources, program evaluation, procedures for the 
H18 103 use and control of supplementary staff, budget techniques, and 
H18 104 payroll controls. These recommendations and the other suggestions 
H18 105 made throughout the text provide helpful guidelines and a benchmark 
H18 106 for further progress.<p/>
H18 107 <p_>As we noted in the State Department comments included as an 
H18 108 appendix to the report, each of the recommendations is consistent 
H18 109 with goals sought by the Department of State for several years. In 
H18 110 this regard, we believe that our policy of insistence on real 
H18 111 change at UNESCO - before any consideration of re-entry into the 
H18 112 organization - has been a significant factor in motivating its 
H18 113 member states, governing bodies, and the Secretariat, itself, to 
H18 114 achieve the progress noted in the report.<p/>
H18 115 <p_>In contrast to this progress, there are other areas of UNESCO 
H18 116 policy which still deeply concern us. Particularly troubling was a 
H18 117 UNESCO mission to Iraq in February, reportedly undertaken in 
H18 118 cooperation with the UNDP [UN Development Program], to assess the 
H18 119 situation of education. While sympathetic to humanitarian 
H18 120 initiatives that meet essential medical and nutritional needs, we 
H18 121 are not inclined to stretch <quote_>"essential civilian 
H18 122 needs"<quote/> discussed in UN Security Council Resolution 687 to 
H18 123 repairing or replacing school buildings. Last August, the UN 
H18 124 Sanctions Committee informed UNESCO that it was unable to reach 
H18 125 agreement on the appropriateness of such a mission, and UNESCO 
H18 126 wisely canceled its plans to send an assessment team to Iraq.<p/>
H18 127 <p_>In September, the UNESCO Executive Board deferred, <tf_>sine 
H18 128 die<tf/>, consideration of any discussion of the situation of the 
H18 129 educational and cultural institutions in Iraq. In November, our 
H18 130 Mission to the United Nations informed the UNESCO representative 
H18 131 that we were not sympathetic to another UNESCO initiative to send a 
H18 132 mission to Iraq to assess the status of schools and cultural sites. 
H18 133 Nonetheless, a UNESCO/UNDP team spent 2 weeks in Iraq during the 
H18 134 month of February. In a March 3 letter to Director General Mayor, 
H18 135 the Kuwaiti Permanent Delegate to UNESCO expressed his surprise 
H18 136 that UNESCO would undertake such a mission in the light of the 
H18 137 board decision and the UN sanctions regime. The Director General 
H18 138 responded that the mission was undertaken in consultation with the 
H18 139 UN Interagency Humanitarian Program and did not contravene 
H18 140 Resolution 687. The officer-in-charge of the Office of the 
H18 141 Executive Delegate for Humanitarian Assistance indicated that the 
H18 142 Director General did not consult his office prior to making a 
H18 143 decision to send a mission to Iraq. We believe the action was 
H18 144 ill-advised, potentially detrimental to the sanctions regime, and 
H18 145 inconsistent with the spirit, if not the letter, of the Executive 
H18 146 Board decision to postpone consideration of the status of Iraqi 
H18 147 educational institutions.<p/>
H18 148 <p_>Turning once more to the GAO report, we believe that particular 
H18 149 attention should be given to the recommendation on better 
H18 150 application of the rules on the use of supplementary staff and fee 
H18 151 contracts to control the contract authorization procedure more 
H18 152 effectively and make it more transparent and uniform. This is of 
H18 153 considerable import in that supplementary staff costs and fee 
H18 154 contracts amounted to nearly $70 million during the 1990-91 
H18 155 biennium. GAO found considerable gaps and inconsistencies in data 
H18 156 on supplementary staff. This raised doubts <quote_>"about whether 
H18 157 UNESCO uses too many supplementary staff or validly employs 
H18 158 them."<quote/> We endorse the Hammarskjold-Wilenski recommendations 
H18 159 that call for the introduction of a consistent and fair promotion 
H18 160 system based on merit, a better career development system, and 
H18 161 equal opportunity for women.<p/>
H18 162 <p_>The report underscores the need for significantly better 
H18 163 program evaluation. We concur and believe considerable improvement 
H18 164 in this area is needed if further program concentration is to be 
H18 165 achieved, as recommended in the report. Impact evaluations are 
H18 166 particularly wanting, both in number and in quality. GAO notes that 
H18 167 UNESCO has conducted only 16 impact evaluations since 1986, 
H18 168 covering only 8% of its activities, and that the appropriate 
H18 169 methodologies, in some instances, were not employed even for this 
H18 170 limited selection. Moreover, while guidelines exist for impact 
H18 171 evaluation, there is no overall plan to ensure that a reasonable 
H18 172 and representative selection of programs will be evaluated.<p/>
H18 173 <p_>Regarding decentralization, there is reason for concern at the 
H18 174 report's observation that 73% of UNESCO's total staff of 2,697 
H18 175 persons is located in Paris and that the ratio of headquarters to 
H18 176 field staff has not varied since 1984. The report notes that a 
H18 177 higher proportion of funds are expended in the field than would be 
H18 178 expected by the distribution of staff; 44% of the 1990-91 regular 
H18 179 and extra-budgetary budgets was expended in the field. This, 
H18 180 however, is the same percentage as in 1988. Clearly, it is time for 
H18 181 the organization to develop the systematic approach to 
H18 182 decentralization mandated by the Executive Board at its November 
H18 183 1991 session.<p/>
H18 184 <p_>In conclusion, we concur with the GAO report's view that 
H18 185 initial progress has been made in implementing management reforms 
H18 186 at UNESCO. Based on the report's conclusions and the observations 
H18 187 of the Hammarskjold/ Wilenski report of last January, however, we 
H18 188 believe that much remains to be done and that what has been 
H18 189 accomplished needs to settle in and be institutionalized. We will 
H18 190 have more to say on this in the report on UNESCO that Congress has 
H18 191 asked us to submit later this summer. Finally, we will continue to 
H18 192 implement fully our current policy and work with UNESCO's governing 
H18 193 bodies, other governments, and the Director General to effect 
H18 194 further reform along the lines recommended in the GAO report. At 
H18 195 present, we do not believe the changes adopted warrant opening the 
H18 196 question of whether to rejoin the organization, at an expenditure 
H18 197 of approximately $55 million per year.<*_>black-square<*/><p/>
H18 198 
H18 199 <h_><p_>US Policy Toward Iraq and the Role of the CCC Program, 
H18 200 1989-90<p/>
H18 201 <p_>Lawrence S. Eagleburger, Deputy Secretary of State<p/>
H18 202 <p_>Statement before the House Committee on Banking, Finance, and 
H18 203 Urban Affairs, Washington, DC, May 21, 1992<p/><h/>
H18 204 <p_>Mr. Chairman and members of the committee, I plan this morning 
H18 205 to do my best to set the record straight on the US Government's 
H18 206 policy toward Iraq during the latter half of the 1980s and in 1990 
H18 207 and to place in context the role of the Commodity Credit 
H18 208 Corporation (CCC) program. I intend to make clear that the 
H18 209 Administration followed a prudent policy toward Iraq at the time - 
H18 210 including the management of the CCC program - even though we, and 
H18 211 other governments, were ultimately unable to restrain Saddam 
H18 212 Hussein.<p/>
H18 213 <p_>In explaining US policy, I also plan to address many of the 
H18 214 factual and legal misstatements currently being put forth by 
H18 215 members of this committee. Quite frankly, the selective disclosure, 
H18 216 out of context, of classified documents has led -knowingly or 
H18 217 otherwise - to distortions of the record, half truths, and outright 
H18 218 falsehoods, all combined into spurious conspiracy theories and 
H18 219 charges of a 'coverup.' For those interested in the truth, let me 
H18 220 make the following 10 points:<p/>
H18 221 <p_><tf|>First, neither the Agriculture Department's investigation 
H18 222 of the Commodity Credit Corporation program, nor the US Attorney's 
H18 223 investigation of BNL [Banca Nazionale del Lavoro]-Atlanta has, to 
H18 224 date, established diversion to third countries of commodities sold 
H18 225 to Iraq or Iraqi misuse of the CCC program to purchase military 
H18 226 weapons.<p/>
H18 227 
H19   1 <#FROWN:H19\><h_><p_>Combating Drug Money-Laundering<p/><h/>
H19   2 <h_><p_>The Problem<p/><h/>
H19   3 <p_>In 1990, the Financial Action Task Force (FATF), an ad hoc 
H19   4 organization of 26 countries that have significant financial 
H19   5 centers, estimated worldwide proceeds from the production, 
H19   6 trafficking, and consumption of illicit drugs at more than $300 
H19   7 billion.<p/>
H19   8 <h_><p_>The Response<p/><h/>
H19   9 <p_>In recent years, it became clear that campaigns against 
H19  10 money-laundering are an important tool to destabilize 
H19  11 drug-trafficking organizations.<p/>
H19  12 <p_>In 1988, nearly 100 governments approved the UN Convention 
H19  13 Against Trafficking in Illicit Narcotics and Dangerous Drugs, which 
H19  14 requires signatories to criminalize money-laundering and remove 
H19  15 bank secrecy barriers that inhibit criminal investigations. The 
H19  16 1989 economic summit, held in Paris, established the FATF to 
H19  17 develop recommendations for action.<p/>
H19  18 <p_>In 1990, the FATF endorsed 40 countermeasures, which it 
H19  19 recommended to governments throughout the world, calling for:<p/>
H19  20 <p_><*_>bullet<*/> The criminalization of money-laundering;<p/>
H19  21 <p_><*_>bullet<*/> Removal of legislative barriers to 
H19  22 investigations;<p/>
H19  23 <p_><*_>bullet<*/> Reporting suspicious transactions;<p/>
H19  24 <p_><*_>bullet<*/> Regulating non-bank as well as banking 
H19  25 institutions; and<p/>
H19  26 <p_><*_>bullet<*/> Rendering assistance to other governments on 
H19  27 financial investigations.<p/>
H19  28 <p_>FATF recommends that each of the 26 participating governments 
H19  29 adopt and implement legislation to enforce these countermeasures. 
H19  30 They further recommend that, through an outreach program already 
H19  31 involving governments in Latin America, the Caribbean, Africa, the 
H19  32 Middle East, and Asia, participating governments seek concurring 
H19  33 legislation among all possible governments whose financial systems 
H19  34 are considered vulnerable to exploitation by traffickers.<p/>
H19  35 <p_>To bolster this effort, the 26 FATF members have agreed to 
H19  36 mutual evaluation, in which teams comprised of experts from other 
H19  37 member countries will assess each government on progress. This 
H19  38 commitment to examination, in addition to submitting annual 
H19  39 self-evaluations, has given the FATF greater political credibility. 
H19  40 The organization has established a secretariat through the 
H19  41 Organization for Economic Cooperation and Development in Paris.<p/>
H19  42 <p_>The European Community (EC) adopted a policy directive to guide 
H19  43 its 12 members in the implementation of the UN convention, going 
H19  44 beyond the convention in some key aspects - notably the requirement 
H19  45 for mandatory reporting by banks of suspicious transactions. The EC 
H19  46 is one of two regional members of FATF and works closely with that 
H19  47 body. A new convention, drafted by the Council of Europe, addresses 
H19  48 the critical issue of cooperation on asset forfeiture, which is 
H19  49 essential given the multiplicity of financial transactions that 
H19  50 today's traffickers are initiating through professional money 
H19  51 managers across the globe.<p/>
H19  52 <h_><p_>The Future<p/><h/>
H19  53 <p_>Money-launderers are using increasingly complex schemes to 
H19  54 avoid detection, such as employing a wide variety of monetary 
H19  55 instruments, non-bank financial institutions, and corporate shells 
H19  56 for placing money. The United States and other financial center 
H19  57 countries have changed strategies to counter these innovations.<p/>
H19  58 <p_><O_>list<O/><p/>
H19  59 <p_>The United States supports Colombian Government efforts to 
H19  60 target money managers. Raids on the Cali cocaine organization, for 
H19  61 example, resulted in the arrests of six leading managers and 
H19  62 seizures of millions in assets. These raids also yielded 300,000 
H19  63 documents, which provide important new insights into how and where 
H19  64 money is laundered. The United States plans similar cooperation 
H19  65 with other governments in South America and Asia, the results of 
H19  66 which should force traffickers to increasingly expose their assets 
H19  67 by constant movements that should result in more seizures and 
H19  68 arrests.<p/>
H19  69 <p_>In 1992, FATF is focusing on non-bank institutions, while also 
H19  70 targeting corporate criminal liability and strengthening asset 
H19  71 forfeiture and seizure provisions.<p/>
H19  72 <p_>The Caribbean Group is expected to adopt more than 60 measures 
H19  73 unique to its region, and governments in Latin America and the 
H19  74 Caribbean are expected to take the first steps to implement model 
H19  75 legislation recommended by the Organization of American States. 
H19  76 Similar efforts will begin in other regions.<*_>black-square<*/><p/>
H19  77 <h_><p_>Controlling Chemicals Used in Drug Trafficking<p/><h/>
H19  78 <p_>Chemicals are necessary for the production of cocaine, heroin, 
H19  79 and synthetic drugs. In order to curb drug production, the United 
H19  80 States is working to deny traffickers access to these chemicals.<p/>
H19  81 <p_>The extensive and competitive international commerce in 
H19  82 chemicals, however, complicates the design and adoption of 
H19  83 effective regulations to prevent diversion. Such regulations must 
H19  84 control the entire chain of a chemical transaction, from chemical 
H19  85 manufacturers through intermediaries to ultimate users, while not 
H19  86 unduly burdening legitimate commerce. They must be adopted by all 
H19  87 major chemical manufacturing and trading countries, in addition to 
H19  88 drug producing countries, to prevent traffickers from switching to 
H19  89 unregulated sources of supply.<p/>
H19  90 <p_>The 1988 UN Convention Against Illicit Traffic in Narcotic 
H19  91 Drugs and Psychotropic Substances outlines procedures for 
H19  92 controlling 12 of the most important drug-related chemicals. The 
H19  93 United States, other Western Hemisphere countries, and the European 
H19  94 Community (EC) have been leaders in adopting laws and regulations 
H19  95 incorporating them.<p/>
H19  96 <p_>The 1988 US Chemical Diversion and Trafficking Act placed 20 
H19  97 chemicals under government control. In 1990, the Organization of 
H19  98 American States (OAS) adopted 'Model Regulations to Control 
H19  99 Precursor Chemicals and Chemical Substances, Machines and 
H19 100 Materials' which are forming the basis for chemical control 
H19 101 regulations in many OAS countries. They call for the regulation of 
H19 102 36 chemicals. The EC has adopted community-wide chemical control 
H19 103 regulations based on the 1988 UN convention to control chemical 
H19 104 trade with non-EC countries.<p/>
H19 105 <p_>Nevertheless, chemicals essential to the production of illicit 
H19 106 drugs are getting through for two basic reasons: the absence of 
H19 107 universal, uniform regulations; and the inability of many countries 
H19 108 to effectively implement their chemical control laws because they 
H19 109 do not have the regulatory infrastructure and trained personnel to 
H19 110 do so.<p/>
H19 111 <p_>We are attacking the problem on two fronts. Experience 
H19 112 demonstrates that the most effective chemical control action is 
H19 113 that taken by the exporting country prior to the exportation of 
H19 114 regulated chemicals. The United States chairs the G-7 Chemical 
H19 115 Action Task Force (CATF) which includes 26 other major chemical 
H19 116 manufacturing countries, drug manufacturing countries, and 
H19 117 concerned international organizations; the CATF has developed 
H19 118 comprehensive recommendations for chemical control, building on 
H19 119 procedures in the 1988 UN convention.<p/>
H19 120 <p_><O_>list<O/><p/>
H19 121 <p_>The extensive discussion in five meetings during 1990-91 on 
H19 122 these recommendations demonstrated to the CATF members that 
H19 123 chemical control is not only desirable but feasible and provided 
H19 124 uniform procedures to be incorporated in a chemical control regime. 
H19 125 The recommendations include five basic chemical control procedures 
H19 126 to be adopted at the national level to prevent diversion and the 
H19 127 addition of 10 chemicals to the 12 in the 1988 UN convention.<p/>
H19 128 <p_>These multilateral initiatives are being supplemented by US 
H19 129 Government bilateral initiatives targeted at the major cocaine 
H19 130 producing countries. We have chemical control agreements with 
H19 131 Bolivia, Colombia, Ecuador, Panama, and Peru to facilitate the 
H19 132 exchange of information to determine the legitimacy of chemical 
H19 133 sales between our countries. The United States is funding chemical 
H19 134 control training through the UN Drug Control Program and the OAS 
H19 135 for the chemical and drug producing countries of Latin America. In 
H19 136 1991, national training workshops were conducted in Bogota, Mexico 
H19 137 City, Quito, and Santiago. The US Drug Enforcement Administration 
H19 138 conducts much of the training.<p/>
H19 139 <p_>The model regulatory regimes and chemical control training are 
H19 140 providing the foundation for enhanced international cooperation 
H19 141 between enforcement agencies of major chemical and drug producing 
H19 142 countries. Our chemical control objective is to extend adoption of 
H19 143 compatible chemical control regimes through the CATF to those 
H19 144 countries that do not have them, while enforcement agencies work to 
H19 145 improve cooperation within existing regulatory frameworks. The 
H19 146 ultimate objective is to make diversion control a standard part of 
H19 147 any transaction involving a drug-related 
H19 148 chemical.<*_>black-square<*/><p/>
H19 149 <h_><p_>Coca Production And the Environment<p/><h/>
H19 150 <h_><p_>The Problem<p/><h/>
H19 151 <p_>Cocaine production causes serious - often irreparable - damage, 
H19 152 since coca is grown and processed in some of the world's most 
H19 153 fragile ecological zones. Coca farmers and the so-called chemists 
H19 154 who process the raw product for export irreversibly damage jungle 
H19 155 forests, soils, and waterways. The populations of the primary 
H19 156 Andean coca regions in Peru, Bolivia, and Colombia - largely 
H19 157 migrants who have come specifically to grow coca - have almost no 
H19 158 regard for the 'eyebrow of the jungle' region where the tributaries 
H19 159 of the Amazon begin.<p/>
H19 160 <p_>Although the US drug war seeks mainly to halt the devastation 
H19 161 caused by drugs to citizens and communities, the United States also 
H19 162 wants to stop environmental destruction. American drug users help 
H19 163 finance the environmental degradation, and the increasing number of 
H19 164 drug users in Europe, in neighboring Latin American countries that 
H19 165 serve as narcotics pipelines, and in the producer countries 
H19 166 themselves add to the market.<p/>
H19 167 <p_>Coca growers and processors damage the environment in three 
H19 168 ways:<p/>
H19 169 <p_><tf|>Deforestation. Deforestation increases erosion and soil 
H19 170 runoff, depletes soil nutrients, and decreases biological 
H19 171 diversity. As heavy rains erode the thin topsoil of the fields, 
H19 172 growers often must abandon their parcels to prepare new plots. 
H19 173 Traffickers also destroy jungle forests to build landing strips and 
H19 174 laboratories. A smoky haze covers much of the Huallaga Valley 
H19 175 throughout August and September as farmers slash and burn forests 
H19 176 to create new fields for coca production; much of the 
H19 177 coca-producing land is cut out of nature preserves and national 
H19 178 forests.<p/>
H19 179 <p_>Scientists in Peru report the irretrievable loss of plant and 
H19 180 animal species due to clearance of large areas of the country's 
H19 181 most biologically diverse region. Besides the 171,000 hectares of 
H19 182 coca cultivated in Bolivia and Peru, producers of illicit drugs 
H19 183 have deforested as much as 1 million hectares of fragile jungle 
H19 184 forest lands in the Amazon region.<p/>
H19 185 <p_><tf_>Use of Herbicides, Pesticides, and Fertilizers in Coca 
H19 186 Growing.<tf/> Seeking to maximize their incomes and largely 
H19 187 ignorant about chemicals, coca growers dump great quantities of 
H19 188 strong pesticides, weedkillers, and fertilizers on their crops. 
H19 189 Peruvian environmentalists estimate that coca growers use 1.5 
H19 190 million liters of paraquat each year in the Upper Huallaga Valley 
H19 191 alone. These chemicals saturate the soil and contaminate waterways, 
H19 192 poisoning the water system and destroying the species that depend 
H19 193 upon it. Although the extent of damage is still unknown, Latin 
H19 194 American environmentalists believe that the contamination is 
H19 195 spreading into adjacent ecological zones.<p/>
H19 196 <p_><tf_>Toxic Chemicals From Cocaine Processing.<tf/> Cocaine 
H19 197 processing laboratories disposing of huge amounts of toxic 
H19 198 chemicals into nearby streams and rivers have killed several fish 
H19 199 species in Peru. Scientists estimate that pollution in Peru's 
H19 200 Amazon feeder rivers from Peruvian processing included, in 1 year, 
H19 201 the discharge of:<p/>
H19 202 <p_><*_>bullet<*/> 57 million liters of kerosene - the equivalent 
H19 203 of one supertanker;<p/>
H19 204 <p_><*_>bullet<*/> 22 million liters of sulfuric acid;<p/>
H19 205 <p_><*_>bullet<*/> 16,000 metric tons of lime;<p/>
H19 206 <p_><*_>bullet<*/> 3,000 metric tons of carbide;<p/>
H19 207 <p_><*_>bullet<*/> 6 million liters of acetone;<p/>
H19 208 <p_><*_>bullet<*/> 6 million liters of toluene; and<p/>
H19 209 <p_><*_>bullet<*/> 10,000 tons of toilet paper.<p/>
H19 210 <h_><p_>US Strategy<p/><h/>
H19 211 <p_>Successful drug control strategies must weigh environmental as 
H19 212 well as social and economic effects. Since manual eradication of 
H19 213 coca bushes is very difficult, dangerous work and because of 
H19 214 environmental concerns about chemical eradication, the United 
H19 215 States - in consultation with Andean nations - is pursuing a 
H19 216 three-fold strategy.<p/>
H19 217 <p_><tf|>1. In Peru and Colombia - limit forced eradication to coca 
H19 218 seedbeds to reduce the spread of cultivation, while working with 
H19 219 local authorities and grower organizations to promote voluntary 
H19 220 eradication. (Some forced eradication of mature coca plants 
H19 221 continues in Bolivia, primarily in public areas such as national 
H19 222 parks.)<p/>
H19 223 <p_><tf|>2. Support alternative economic opportunities, crop 
H19 224 substitution, and other programs to provide growers with another 
H19 225 way to earn a living and escape from dependence on criminal 
H19 226 organizations.<p/>
H19 227 <p_><tf|>3. Attack the trafficker organizations by intercepting 
H19 228 their aircraft, seizing their assets, destroying their drug 
H19 229 production facilities, and reducing their supplies of chemical 
H19 230 inputs to stem their earnings.<*_>black-square<*/><p/>
H19 231 <h|>Bolivia
H19 232 <h_><p_>US-Bolivian Relations<p/><h/>
H19 233 <p_>Traditionally, the United States and Bolivia have enjoyed good, 
H19 234 friendly relations. Our goals in Bolivia are similar to those that 
H19 235 the current government has set for itself: to strengthen democracy, 
H19 236 institutionalize economic reforms, and eliminate narcotics 
H19 237 trafficking. The United States has a longstanding aid relationship 
H19 238 with Bolivia. Between 1945 and 1991, US economic assistance totaled 
H19 239 more than $1.6 billion.<p/>
H19 240 <p_>Bolivia is an active participant in regional organizations such 
H19 241 as the Organization of American States (OAS) and the Rio Group. The 
H19 242 country has a good human rights record and has created a legal 
H19 243 framework to encourage foreign private investment. The United 
H19 244 States has modest trade with Bolivia and is negotiating a bilateral 
H19 245 investment treaty.<p/>
H19 246 <p_>Since taking office in August 1989, President Jaime Paz Zamora 
H19 247 has met twice with President Bush. Vice President Quayle visited 
H19 248 the Bolivian capital, La Paz, in the fall of 1989.<p/>
H19 249 <h_><p_>Political Conditions<p/><h/>
H19 250 <p_>Bolivia is close to completing a decade of democratic 
H19 251 government. Since 1982, it has had two peaceful democratic 
H19 252 transitions. The Administration of President Paz Zamora is now in 
H19 253 its third year of its 4-year term. He has been a moderate, 
H19 254 pragmatic president.
H19 255 
H20   1 <#FROWN:H20\>The specific question raised by corporate integration 
H20   2 is whether the current distinction in the treatment of corporate 
H20   3 equity investments by tax-exempt entities (which bear the 
H20   4 corporate, but not the shareholder level tax) versus corporate debt 
H20   5 investments (which bear neither corporate nor debtholder level tax) 
H20   6 should be retained or decreased. An integration system best 
H20   7 fulfills its goals if it provides uniform treatment of debt and 
H20   8 equity investments by tax-exempt investors. Equating the tax 
H20   9 treatment of debt and equity will require either an increase or 
H20  10 decrease in the taxes on corporate capital supplied by tax-exempt 
H20  11 investors or the introduction of a separate tax on investment 
H20  12 income of these investors. As Section 6.D discusses, such a tax 
H20  13 could be designed to maintain the current level of tax on income 
H20  14 from corporate capital supplied by tax-exempt investors while 
H20  15 equalizing the treatment of debt and equity.<p/>
H20  16 <h_><p_>6.B DISTORTIONS UNDER CURRENT LAW<p/><h/>
H20  17 <p_>Current law encourages tax-exempt investors, like taxable 
H20  18 investors, to invest in debt rather than equity. Only two types of 
H20  19 income from capital supplied to corporations by tax-exempt entities 
H20  20 are actually tax-exempt. Interest paid by corporations is both 
H20  21 deductible by the corporate payor<&|>sic! and exempt from tax in 
H20  22 the hands of the tax-exempt recipient. Corporate preference income 
H20  23 distributed to tax-exempt shareholders also is exempt from tax at 
H20  24 both the corporate and the shareholder level. Non-preference income 
H20  25 is taxed at the corporate level, but is not taxed at the 
H20  26 shareholder level whether it is received by the exempt investor as 
H20  27 capital gains from the sale of shares or as dividends from 
H20  28 distributions. Thus, under current law, corporate income paid to 
H20  29 tax-exempt investors in the form of interest is not taxed at either 
H20  30 the corporate or investor level, while non-preference income 
H20  31 retained or distributed to tax-exempt shareholders is subject to 
H20  32 tax at the corporate level.<p/>
H20  33 <p_>Current law does not, however, encourage tax-exempt investors 
H20  34 to invest in equity of noncorporate rather than corporate 
H20  35 businesses, because, in both cases, the income is subject to one 
H20  36 level of tax. While corporate income (other than preference income) 
H20  37 allocable to tax-exempt shareholders is subject to tax at the 
H20  38 corporate level, the noncorporate unrelated business income of 
H20  39 tax-exempt investors generally is subject to UBIT. For tax-exempt 
H20  40 investors who invest in equity, current law generally also does not 
H20  41 affect their preferences for distributed or retained earnings. 
H20  42 Because corporate income (other than preference income) is subject 
H20  43 to current corporate level tax and both distributed and retained 
H20  44 earnings are exempt from tax at the shareholder level, a tax-exempt 
H20  45 shareholder has no tax incentive to prefer distributed earnings 
H20  46 over retained earnings.<p/>
H20  47 <h_><p_>6.C NEUTRALITY UNDER AN INTEGRATED TAX SYSTEM<p/><h/>
H20  48 <p_>Because of the asymmetric treatment of debt and equity 
H20  49 investments by tax-exempt entities under current law, an integrated 
H20  50 system can achieve neutrality between debt and equity investments 
H20  51 for tax-exempt investors only by either decreasing the tax burden 
H20  52 on equity income or increasing the tax burden on interest. A 
H20  53 straightforward decrease in the tax burden on equity investments 
H20  54 might be accomplished by removing the corporate level tax on 
H20  55 earnings distributed as dividends to tax-exempt investors. A 
H20  56 deduction for corporate dividends, for example, would achieve this 
H20  57 result. The contrary approach might subject interest income on 
H20  58 corporate debt earned by tax-exempt investors to one level of tax 
H20  59 (at either the corporate or the investor level).<p/>
H20  60 <p_>The first approach, taxing neither dividends nor interest paid 
H20  61 to tax-exempt investors, would lose substantial amounts of tax 
H20  62 revenue relative to current law. Extending the benefits of 
H20  63 integration to tax-exempt investors would add costs of 
H20  64 approximately $29 billion annually under distribution-related 
H20  65 integration and approximately $42 billion annually under 
H20  66 shareholder allocation. This revenue loss would increase the costs 
H20  67 of integration and would require offsetting increases in other 
H20  68 taxes or in tax rates, which might create or increase other 
H20  69 distortions. This approach also would distort the choice between 
H20  70 corporate and noncorporate investment for tax-exempt investors if 
H20  71 UBIT remained in place for noncorporate investment. If corporate 
H20  72 dividends were tax-exempt at both the corporate and investor level, 
H20  73 while earnings from businesses conducted directly or in partnership 
H20  74 form were subject to UBIT, a tax-exempt investor would always 
H20  75 prefer corporate dividends. Indeed, anti-abuse rules might be 
H20  76 required to preclude tax-exempt organizations from avoiding UBIT 
H20  77 altogether simply by incorporating their unrelated businesses.<p/>
H20  78 <p_>The second approach, taxing both interest and dividends at a 
H20  79 single rate, would reduce the current advantage of tax-exempt 
H20  80 investors relative to taxable investors. Tax-exempt investors would 
H20  81 no longer enjoy an after-tax return on a given corporate equity or 
H20  82 debt investment higher than that available to taxable investors. 
H20  83 The principal advantage of this approach is that it would equate 
H20  84 the treatment of debt and equity while maintaining the neutrality 
H20  85 between corporate and noncorporate equity for tax-exempt 
H20  86 investors.<p/>
H20  87 <h_><p_>6.D GENERAL RECOMMENDATIONS<p/><h/>
H20  88 <p_>This Report recommends that a level of taxation at least equal 
H20  89 to the current taxation of corporate equity income allocated to 
H20  90 investments by the tax-exempt sector be retained under integration. 
H20  91 The dividend exclusion prototype, described in Chapter 2, 
H20  92 essentially continues present law treatment of tax-exempt investors 
H20  93 under an integrated tax system, so fully-taxed corporate profits 
H20  94 would continue to bear one level of tax and preference income would 
H20  95 not be taxed at either the corporate or shareholder level. A 
H20  96 similar result can be accomplished under an imputation credit 
H20  97 system of integration, but a dividend deduction system would 
H20  98 eliminate the current corporate level tax on distributed earnings 
H20  99 on equity capital supplied by tax-exempt investors. Under the 
H20 100 shareholder allocation prototype described in Chapter 3, taxes are 
H20 101 collected at the corporate level on corporate income allocable to 
H20 102 investment by tax-exempt shareholders and no refund is provided to 
H20 103 nontaxable shareholders.<p/>
H20 104 <p_>Maintaining one level of tax on equity investments by 
H20 105 tax-exempt entities would promote one of the primary goals of 
H20 106 integration: achieving tax neutrality for all investors between 
H20 107 corporate and noncorporate investments. This choice is consistent 
H20 108 with a move to integration for taxable shareholders, because 
H20 109 choosing to reduce the double tax burden on corporate income 
H20 110 distributed to taxable investors does not necessarily dictate a 
H20 111 commensurate reduction in the tax burden on tax-exempt investors. 
H20 112 Finally, continuing to tax equity investments by the tax-exempt 
H20 113 sector avoids the revenue loss that would result if such 
H20 114 investments were completely tax-exempt. Increasing other tax rates 
H20 115 to compensate for such a revenue loss would entail other 
H20 116 inefficiencies.<p/>
H20 117 <p_>Some countries that have adopted integration have chosen to tax 
H20 118 separately corporate and other income allocable to tax-exempt 
H20 119 investors. For example, in moving to an integrated corporate tax, 
H20 120 Australia and New Zealand imposed a tax on the income of pension 
H20 121 funds, thus reducing the number of tax-exempt investors. In both 
H20 122 countries, the remaining tax-exempt investor base, such as 
H20 123 charities, is small. Australia imposed a 15 percent tax on 
H20 124 investment income earned by pension funds and made available the 
H20 125 full 39 percent imputation credit from dividends as a nonrefundable 
H20 126 offset. Australia did not project collecting more than a token 
H20 127 amount of tax from this tax on investment income: it devised the 
H20 128 mechanism to remove distortions between investing in domestic 
H20 129 corporations (which pay Australian tax) and investing in foreign 
H20 130 corporations (which generally do not). The new Australian system 
H20 131 also removes distortions between investing in equity and investing 
H20 132 in debt. New Zealand went further and repealed entirely the tax 
H20 133 exemption of pension funds; they now function basically as taxable 
H20 134 savings accounts. Under the U.K. distribution-related integration 
H20 135 system, the corporate level tax is not completely eliminated, with 
H20 136 the consequence that income distributed to tax-exempt shareholders 
H20 137 bears some tax burden.<p/>
H20 138 <p_>This Report also encourages an effort to achieve uniform tax 
H20 139 treatment of corporate debt and equity investments by tax-exempt 
H20 140 investors. Because of the important role played by the tax-exempt 
H20 141 sector in the capital markets, failing to create neutrality for 
H20 142 debt and equity investments by the tax-exempt sector would limit 
H20 143 the extent to which integration could achieve tax neutrality 
H20 144 between the two kinds of investments. This is achieved under CBIT 
H20 145 by treating tax-exempt shareholders and debtholders generally like 
H20 146 other suppliers of corporate capital, with tax imposed at the 
H20 147 corporate level.<p/>
H20 148 <p_>One potential alternative approach would tax all corporate and 
H20 149 noncorporate income allocable to investment by the tax-exempt 
H20 150 sector at a rate lower than the rate applicable to taxable 
H20 151 investors. Such a tax on the investment income, including dividends 
H20 152 and interest income, received by tax-exempt entities could be set 
H20 153 to achieve overall revenues equivalent to those currently borne by 
H20 154 corporate capital supplied by the tax-exempt sector. Under the 
H20 155 imputation credit prototype discussed in Chapter 11, for example, 
H20 156 imputation credits for corporate taxes paid would be allowed to 
H20 157 tax-exempt shareholders. To the extent that the credit rate exceeds 
H20 158 the tax rate on investment income, the excess credits could be used 
H20 159 to offset tax on interest or other investment income. In addition 
H20 160 to the substantial advantage of equating the tax treatment of debt 
H20 161 and equity held by such investors, such an approach would allow 
H20 162 tax-exempt investors to use shareholder level credits for corporate 
H20 163 taxes paid to the same extent as taxable shareholders. By doing so, 
H20 164 this approach would limit both portfolio shifts and other tax 
H20 165 planning techniques that might otherwise be induced by efforts to 
H20 166 distinguish among taxable and tax-exempt investors in integrating 
H20 167 the corporate income tax. A revenue neutral rate for such a system 
H20 168 would be in the range of 6 to 8 percent depending on the prototype. 
H20 169 This would approximate the current law corporate tax burden on 
H20 170 investments by tax-exempt shareholders.<p/>
H20 171 <p_><h_>CHAPTER 7:<p/>
H20 172 <p_>TREATMENT OF FOREIGN INCOME AND SHAREHOLDERS<p/>
H20 173 <p_>7.A INTRODUCTION<p/><h/>
H20 174 <p_>International issues are important in designing an integrated 
H20 175 tax system because there is substantial investment by U.S. persons 
H20 176 in foreign countries (outbound investment) and investment by 
H20 177 foreign persons in the United States (inbound investment). At the 
H20 178 end of 1990, private U.S. investors owned direct investments abroad 
H20 179 with a market value of $714 billion, and $910 billion in foreign 
H20 180 portfolio investment, while private foreign investors owned $530 
H20 181 billion in direct investment in the United States and $1.34 
H20 182 trillion in U.S. portfolio investment. U.S. investors received a 
H20 183 total of $54.4 billion income from their direct investments abroad 
H20 184 in 1990, and $65.7 billion of income from their foreign portfolio 
H20 185 investments, while foreign investors received $1.8 billion from 
H20 186 their direct investments in the United States in 1990 and $78.5 
H20 187 billion from their U.S. portfolio investments.<p/>
H20 188 <p_>The income from transnational investments may be taxed by both 
H20 189 the country in which the investment is made (the host or source 
H20 190 country) and the country of residence of the investor (the 
H20 191 residence country). The United States uses two primary instruments 
H20 192 for mitigating the potential problem of double taxation: the 
H20 193 foreign tax credit and bilateral income tax treaties entered into 
H20 194 between the United States and about 40 other countries.<p/>
H20 195 <p_><tf_>Taxation of foreign investment by U.S. investors.<tf/> The 
H20 196 United States taxes the worldwide income of its residents. The U.S. 
H20 197 tax on income earned by U.S. corporations or individuals through 
H20 198 foreign corporations is generally deferred until such income is 
H20 199 repatriated through dividend or interest payments to U.S. 
H20 200 shareholders or creditors.<p/>
H20 201 <p_>The United States allows taxpayers to claim a foreign tax 
H20 202 credit for qualifying foreign income taxes paid (the direct foreign 
H20 203 tax credit). Current law also allows corporate taxpayers that 
H20 204 receive dividends (or include Subpart F income) from at least 
H20 205 10-percent owned foreign subsidiaries to claim a foreign tax credit 
H20 206 for a ratable portion of the qualifying foreign taxes paid by the 
H20 207 subsidiary on the income from which the dividends are paid (the 
H20 208 indirect foreign tax credit). The portion of the foreign taxes 
H20 209 which taxpayers may claim as an indirect credit is proportional to 
H20 210 the fraction of the earnings of the foreign subsidiary distributed 
H20 211 or deemed distributed. The dividend income for U.S. tax purposes is 
H20 212 grossed up by the amount of the direct and indirect credits 
H20 213 claimed. The indirect foreign tax credit, like the dividends 
H20 214 received deduction available domestically, prevents multiple 
H20 215 taxation of corporate profits at the corporate level.<p/>
H20 216 <p_>The Code limits the maximum foreign tax credit to prevent the 
H20 217 foreign tax credit from offsetting taxes on domestic source income. 
H20 218 Separate limitations apply to several different kinds of foreign 
H20 219 source income (baskets) in order to restrict the use of foreign tax 
H20 220 credits from high-taxed foreign source income against low-taxed 
H20 221 foreign source income.
H20 222 
H21   1 <#FROWN:H21\><h_><p_>Radio Address to the Nation on Domestic 
H21   2 Reforms<p/>
H21   3 <p_>March 28, 1992<p/><h/>
H21   4 <p_>Good morning:<p/>
H21   5 <p_>Many have called the 20th century the American Century. The 
H21   6 question before us today is about the next century, looking just a 
H21   7 few years ahead.<p/>
H21   8 <p_>Let me tell you a story that will help shape that century, a 
H21   9 story you probably haven't heard about. It's about a battle between 
H21  10 those who want to change things and those who want to protect the 
H21  11 status quo. And in this battle those who support change are telling 
H21  12 those who want to stand pat: lead, follow, or get out of the 
H21  13 way.<p/>
H21  14 <p_>Wednesday, those words were heard loud and clear. I'm talking 
H21  15 about how the Democratic Congress couldn't muster a two-thirds 
H21  16 majority; incredibly, couldn't even get a majority to override my 
H21  17 veto of the liberals' latest tax increase. This story you haven't 
H21  18 heard about is also unheard of. Only twice before in the last 60 
H21  19 years has the House failed to muster a simple majority to override 
H21  20 a veto.<p/>
H21  21 <p_>Congressional liberals suffered this defeat for a simple 
H21  22 reason: Americans measure progress in people helped, not dollars 
H21  23 spent. And that's why I'm going to continue the fight to keep a lid 
H21  24 on Federal spending. It's also why I ask Senator McCain of Arizona 
H21  25 and Congressman Harris Fawell of Illinois to formally introduce 
H21  26 legislation to endorse the 68 rescissions I announced last week to 
H21  27 cut nearly $4 billion in waste from a bloated Federal Budget.<p/>
H21  28 <p_>Unlike liberal Democrats, given our big deficit, I don't think 
H21  29 the Federal Government can afford to fund prickly pear research or 
H21  30 study asparagus yield declines. Those who reject these pork barrel 
H21  31 projects will stand with me and the American taxpayer. Those who 
H21  32 support them will have to explain in November why the public 
H21  33 interest has been denied.<p/>
H21  34 <p_>If enough members demand it, Congress must vote on each of 
H21  35 these bills, yes or no, up or down. I'm going to work with those 
H21  36 who want the Congress to be accountable and fight those who will 
H21  37 try to block our initiatives through parliamentary gimmicks. I know 
H21  38 that Government is too big and spends too much. And now let's see 
H21  39 where Congress stands. Stay tuned, keep listening. We'll find out 
H21  40 who really wants to cut spending and who just wants to keep the 
H21  41 pork.<p/>
H21  42 <p_>In a world more driven by economic competition than ever 
H21  43 before, the challenge I am referring to is crucial to our future. I 
H21  44 mean reform of the American Government. During the last decade, one 
H21  45 institution after another has looked within itself, decided on 
H21  46 improvements, and acted to fix its problems and reflect its 
H21  47 principles. Our task now is to bring that process of reform to the 
H21  48 United States Government. All of us know Government's problem, too 
H21  49 often it is not accountable, not effective, not efficient. It's not 
H21  50 even compassionate. Only by changing it can we protect America's 
H21  51 general interest against selfish, special interests.<p/>
H21  52 <p_>My rescissions will help knock out one part of the special 
H21  53 interest problem at work in Congress today, but the changes I want 
H21  54 are even bigger. I want to end the PAC contributions which are 
H21  55 corrupting our system. I want to place term limits on Congress, and 
H21  56 I want to lead the American people in making changes that will make 
H21  57 the 21st century another American Century.<p/>
H21  58 <p_>One challenge is to make our people educated, literate, and 
H21  59 motivated to keep learning. And that's why I'm trying to reform our 
H21  60 education system from top to bottom.<p/>
H21  61 <p_>Our people must have a sense of well-being about their health 
H21  62 and that of their children and families. My health care reform plan 
H21  63 will guarantee them access to the finest health care system in the 
H21  64 world and make that care affordable.<p/>
H21  65 <p_>And next, help me return our civil justice system to its 
H21  66 original purpose: dispense justice with civility. Eighteen million 
H21  67 lawsuits a year are choking us, costing individuals and businesses 
H21  68 billions, a tremendous drag on our morale as well as our 
H21  69 economy.<p/>
H21  70 <p_>And in the next century, as we look at the likely economic 
H21  71 competition as well as the likely opportunities, they will be 
H21  72 beyond our borders. That means we must open up more foreign markets 
H21  73 to sell our goods and our services and to sustain and create jobs 
H21  74 for our people.<p/>
H21  75 <p_>Reform of Government, education, health care, our legal system, 
H21  76 opening markets abroad: addressing these issues is fundamental to 
H21  77 America's future. Already America has changed the world. Today I'm 
H21  78 asking you to help me change America. If Congress won't change, 
H21  79 we'll have to change the Congress. The battle has been joined, and 
H21  80 it's your future that we're fighting for.<p/>
H21  81 <p_>Thank you for your support. And may God bless the United States 
H21  82 of America.<p/>
H21  83 <p_><tf_>Note: This address was recorded at 10:30 a.m. on March 27 
H21  84 in the Oval Office at the White House for broadcast after 9 a.m. on 
H21  85 March 28.<tf/><p/>
H21  86 <h_><p_>Remarks to State Attorneys General <p/>
H21  87 <p_>March 30, 1992<p/><h/>
H21  88 <p_>Well, may I salute Ken Eikenberry and Jeff Amestoy and all the 
H21  89 State attorney generals, and salute also - whoops, there he is down 
H21  90 there - our own Bill Barr, who I think is doing an outstanding job. 
H21  91 And I know he's working closely with everybody in this room.<p/>
H21  92 <p_>Bill has his forces moving out on several fronts, from tort 
H21  93 reform to relief of prison overcrowding. We've also started what we 
H21  94 call the Weed and Seed initiative, our plan to get the roots, rip 
H21  95 them out of the inner<?_>-<?/>city violence, and then plant seeds 
H21  96 of hope with more educational opportunity, with more job training, 
H21  97 with a new approach to health care. And then we are going to keep 
H21  98 hammering away on the need for enterprise zones. This plan joins 
H21  99 Federal, State, and local forces to go after and to take back our 
H21 100 hardest-hit neighborhoods. They're crucial missions, and I am 
H21 101 determined to see them achieved and let nothing stand in the 
H21 102 way.<p/>
H21 103 <p_>The efforts of the Justice Department help shape the kind of 
H21 104 legacy that we leave for future generations. And our children must 
H21 105 inherit a society that is safe, is sane and just. And I've also 
H21 106 spoken of other meaningful legacies like jobs and a world at peace 
H21 107 and certainly, strong families. The American heritage which I 
H21 108 describe is one where children can sit on their porch without the 
H21 109 fear of getting caught in an ugly crossfire, where decent people 
H21 110 don't have to hide behind locked doors while gangs roam the 
H21 111 streets, where the message is clear: when it comes to the law, if 
H21 112 you're going to take liberties, you're going to lose your own, 
H21 113 you're going to pay.<p/>
H21 114 <p_>We cannot pass this legacy onto our children tomorrow unless we 
H21 115 start going after tough crime legislation today. And for 3 years 
H21 116 running, we have called on the Congress to pass a tough crime bill. 
H21 117 We've pushed hard. Many of you have been at our side in trying to 
H21 118 get something done. I want a bill that won't tie the hands of the 
H21 119 honest cops in trying to get their jobs done, one that shows less 
H21 120 sympathy for the criminals and certainly more for the victims of 
H21 121 crime. And most of all, I want to get a crime bill that I can 
H21 122 sign.<p/>
H21 123 <p_>But law and order mean more than just safe streets and bigger 
H21 124 prisons. Reforming the system also means going after public 
H21 125 corruption in our cities and our States, the rot that eats away at 
H21 126 our institutions and at our trust. Over the past 3 years, this 
H21 127 administration has moved aggressively to hunt down corruption and 
H21 128 stop it dead in its tracks.<p/>
H21 129 <p_>For the record, in '89 and '90 alone the Department secured 
H21 130 over 2,200 convictions, 2,200 in public corruption cases. Judges, 
H21 131 legislators, and law enforcement officials, part-time crooks, 
H21 132 full-time fakes: Nobody is immune. And this kind of crime does 
H21 133 society real harm because these swindlers aren't satisfied merely 
H21 134 with making crime pay; they stick the taxpayer with the tab. And 
H21 135 millions and millions of hard-earned tax dollars are disappearing 
H21 136 from public treasuries every single year and showing up in 
H21 137 corruption's back pocket. And this is money that could be building 
H21 138 roads or balancing budgets. I am preaching to the choir on this 
H21 139 subject because you all are out there on the cutting edge, on the 
H21 140 front line all the time, trying to do something about the 
H21 141 problem.<p/>
H21 142 <p_>But the problem is greater than a few individuals who stopped 
H21 143 caring. The problem is a system that has stopped working. And the 
H21 144 old bureaucratic system of big Government has ground to a halt. And 
H21 145 it's not accountable; it is not effective; and it is not efficient. 
H21 146 It's not even compassionate. And the chronic problems we see today 
H21 147 are sad proof that the old approaches are producing new 
H21 148 failures.<p/>
H21 149 <p_>So in this election year, it's understandable, I'm sure, that 
H21 150 we hear a lot of talk about change. You all have been fighting for 
H21 151 change; I think I have. And yes, the time has come for change, 
H21 152 far-reaching, fundamental reform. That's the kind of change that 
H21 153 his country needs in the fighting-crime field. Not just in fighting 
H21 154 crime, incidentally, and not just in Government but all across the 
H21 155 board.<p/>
H21 156 <p_>And that's why I've - proposing school choice reform - just 
H21 157 finished almost an hour meeting with our Secretary of Education on 
H21 158 that one. So the choices about education can be made from the 
H21 159 kitchen table, not from the halls of bureaucracy. Where it's been 
H21 160 tried, it has been effective in improving the schools that are not 
H21 161 chosen as well as those that are.<p/>
H21 162 <p_>And I've proposed a health care reform to improve access for 
H21 163 those who need it the most. Legal reform, we need your help on. 
H21 164 We've got good proposals up there on Capitol Hill. Our legal reform 
H21 165 is shaped so that Americans can start solving their problems face 
H21 166 to face instead of lawyer to lawyer. I'm amazed at the number, the 
H21 167 great increase in lawsuits that is really putting a damper on so 
H21 168 many aspects in our society.<p/>
H21 169 <p_>The kind of change that I'm describing is hard. It has its 
H21 170 enemies, and the battle lines have been drawn: the allies of change 
H21 171 versus the defenders of the status quo. So, I want to make it very 
H21 172 clear which side I'm on; I know which side many of you are on.<p/>
H21 173 <p_>So, let the cynics say that this is only a fight for the next 
H21 174 election. We know it's a battle for the next generation. And I'm 
H21 175 very glad you all are here. And what we'll do is go over here, and 
H21 176 I'd love to have suggestions from you as to how we might be doing 
H21 177 our job better down here. And of course, I'd be glad to take 
H21 178 questions and if they're technical, I'll kick them off to perhaps 
H21 179 the most able Attorney General a guy could hope to have with 
H21 180 him.<p/>
H21 181 <p_>Thank you all very much.<p/>
H21 182 <p_><tf_>Note: The President spoke at 10:36 a.m. in the Roosevelt 
H21 183 Room at the White House. In his remarks, he referred to Kenneth O. 
H21 184 Eikenberry, attorney general of Washington, and Jeffrey L. Amestoy, 
H21 185 attorney general of Vermont.<p/>
H21 186 <h_><p_>Exchange With Reporters Prior to a Meeting With President 
H21 187 George Vassiliou of Cyprus<p/>
H21 188 <p_>March 30, 1992<p/>
H21 189 <p_>Cyprus<p/><h/>
H21 190 <p_><tf|>Q. President Vassiliou, are you going to ask the United 
H21 191 States to pressure Mr. Denktash to make some progress?<p/>
H21 192 <p_><tf_>President Vassiliou.<tf/> Well, I am grateful to the 
H21 193 President for his support for a solution of the Cyprus problem, and 
H21 194 I'm sure that the fact that he's meeting here, with him in an 
H21 195 election campaign period, is the best proof of his interest. And 
H21 196 I'm grateful.<p/>
H21 197 <p_><tf_>President Bush.<tf/> I am interested, and I just hope we 
H21 198 can help. Our Ambassador's been wonderful and tried, a special 
H21 199 Ambassador, but now he's going on to greater pursuits. But we can't 
H21 200 let him get too far away because he's very interested in all of 
H21 201 that. No, but we'll talk about it, and I think your visit up there 
H21 202 in New York probably is very important. I hope the new 
H21 203 Secretary-General is energized.
H21 204 
H22   1 <#FROWN:H22\><h_><p_>PART ONE<p/>
H22   2 <p_>GENERAL PART<p/>
H22   3 <p_>Chapter One<p/>
H22   4 <p_>Objectives<p/>
H22   5 <p_>Article 101: Establishment of the Free Trade Area<p/><h/>
H22   6 <p_>The Parties to this Agreement, consistent with Article XXIV of 
H22   7 the <tf_>General Agreement on Tariffs and Trade<tf/>, hereby 
H22   8 establish a free trade area.<p/>
H22   9 <h_><p_>Article 102: Objectives<p/><h/>
H22  10 <p_>1. The objectives of this Agreement, as elaborated more 
H22  11 specifically through its principles and rules, including national 
H22  12 treatment, most-favored-nation treatment and transparency, are 
H22  13 to:<p/>
H22  14 <p_>(a) eliminate barriers to trade in, and facilitate the 
H22  15 cross-border movement of, goods and services between the 
H22  16 territories of the Parties;<p/>
H22  17 <p_>(b) promote conditions of fair competition in the free trade 
H22  18 area;<p/>
H22  19 <p_>(c) increase substantially investment opportunities in the 
H22  20 territories of the Parties;<p/>
H22  21 <p_>(d) provide adequate and effective protection and enforcement 
H22  22 of intellectual property rights in each Party's territory;<p/>
H22  23 <p_>(e) create effective procedures for the implementation and 
H22  24 application of this Agreement, for its joint administration and for 
H22  25 the resolution of disputes; and<p/>
H22  26 <p_>(f) establish a framework for further trilateral, regional and 
H22  27 multilateral cooperation to expand and enhance the benefits of this 
H22  28 Agreement.<p/>
H22  29 <p_>2. The Parties shall interpret and apply the provisions of this 
H22  30 Agreement in the light of its objectives set out in paragraph 1 and 
H22  31 in accordance with applicable rules of international law.<p/>
H22  32 <h_><p_>Article 103: Relation to Other Agreements<p/><h/>
H22  33 <p_>1. The Parties affirm their existing rights and obligations 
H22  34 with respect to each other under the <tf_>General Agreement of 
H22  35 Tariffs and Trade<tf/> and other agreements to which such Parties 
H22  36 are party.<p/>
H22  37 <p_>2. In the event of any inconsistency between this Agreement and 
H22  38 such other agreements, this Agreement shall prevail to the extent 
H22  39 of the inconsistency, except as otherwise provided in this 
H22  40 Agreement.<p/>
H22  41 <h_><p_>Article 104: Relation to Environmental and Conservation 
H22  42 Agreements<p/><h/>
H22  43 <p_>1. In the event of any inconsistency between this Agreement and 
H22  44 the specific trade obligations set out in:<p/>
H22  45 <p_>(a) the <tf_>Convention on International Trade in Endangered 
H22  46 Species of Wild Fauna and Flora<tf/>, done at Washington, March 3, 
H22  47 1973, as amended June 22, 1979,<p/>
H22  48 <p_>(b) the <tf_>Montreal Protocol on Substances that Deplete the 
H22  49 Ozone Layer<tf/>, done at Montreal, September 16, 1987, as amended 
H22  50 June 29, 1990,<p/>
H22  51 <p_>(c) the <tf_>Basel Convention on the Control of Transboundary 
H22  52 Movements of Hazardous Wastes and Their Disposal<tf/>, done at 
H22  53 Basel, March 22, 1989, on its entry into force for Canada, Mexico 
H22  54 and the United States, or<p/>
H22  55 <p_>(d) the agreements set out in Annex 104.1,<p/>
H22  56 <p_>such obligations shall prevail to the extent of the 
H22  57 inconsistency, provided that where a Party has a choice among 
H22  58 equally effective and reasonably available means of complying with 
H22  59 such obligations, the Party chooses the alternative that is the 
H22  60 least inconsistent with the other provisions of this Agreement.<p/>
H22  61 <p_>2. The Parties may agree in writing to modify Annex 104.1 to 
H22  62 include any amendment to an agreement referred to in paragraph 1, 
H22  63 and any other environmental or conservation agreement.<p/>
H22  64 <h_><p_>Article 105: Extent of Obligations<p/><h/>
H22  65 <p_>The Parties shall ensure that all necessary measures are taken 
H22  66 in order to give effect to the provisions of this Agreement, 
H22  67 including their observance, except as otherwise provided in this 
H22  68 Agreement, by state and provincial governments.<p/>
H22  69 <h_><p_>Annex 104.1<p/>
H22  70 <p_>Bilateral and Other Environmental and Conservation 
H22  71 Agreements<p/><h/>
H22  72 <p_>1. The <tf_>Agreement Between the Government of Canada and the 
H22  73 Government of the United States of America Concerning the 
H22  74 Transboundary Movement of Hazardous Waste<tf/>, signed at Ottawa, 
H22  75 October 28, 1986.<p/>
H22  76 <p_>2. The <tf_>Agreement Between the United States of America and 
H22  77 the United Mexican States on Cooperation for the Protection and 
H22  78 Improvement of the Environment in the Border Area<tf/>, signed at 
H22  79 La Paz, Baja California Sur, August 14, 1983.<p/>
H22  80 <h_><p_>Chapter Two<p/>
H22  81 <p_>General Definitions<p/><h/>
H22  82 <h_><p_>Article 201: Definitions of General Application<p/><h/>
H22  83 <p_>1. For purposes of this Agreement, unless otherwise 
H22  84 specified:<p/>
H22  85 <p_><tf|>Commission means the Free Trade Commission established 
H22  86 under Article 2001(1) (The Free Trade Commission);<p/>
H22  87 <p_><tf_>Customs Valuation Code<tf/> means the <tf_>Agreement on 
H22  88 Implementation of Article VII of the General Agreement on Tariffs 
H22  89 and Trade<tf/>, including its interpretative notes;<p/>
H22  90 <p_><tf|>days means calendar days, including weekends and 
H22  91 holidays;<p/>
H22  92 <p_><tf|>enterprise means any entity constituted or organized under 
H22  93 applicable law, whether or not for profit, and whether 
H22  94 privately-owned or governmentally-owned, including any corporation, 
H22  95 trust, partnership, sole proprietorship, joint venture or other 
H22  96 association;<p/>
H22  97 <p_><tf_>enterprise of a Party<tf/> means an enterprise constituted 
H22  98 or organized under the law of a Party;<p/>
H22  99 <p_><tf|>existing means in effect on the date of entry into force 
H22 100 of this Agreement;<p/>
H22 101 <p_><tf_>Generally Accepted Accounting Principles<tf/> means the 
H22 102 recognized consensus or substantial authoritative support in the 
H22 103 territory of a Party with respect to the recording of revenues, 
H22 104 expenses, costs, assets and liabilities, disclosure of information 
H22 105 and preparation of financial statements. These standards may be 
H22 106 broad guidelines of general application as well as detailed 
H22 107 standards, practices and procedures;<p/>
H22 108 <p_><tf_>goods of a Party<tf/> means domestic products as these are 
H22 109 understood in the <tf_>General Agreement on Tariffs and Trade<tf/> 
H22 110 or such goods as the Parties may agree, and includes originating 
H22 111 goods of that Party;<p/>
H22 112 <p_><tf_>Harmonized System (HS) means the <tf_>Harmonized Commodity 
H22 113 Description and Coding System<tf/>, and its legal notes, as adopted 
H22 114 and implemented by the Parties in their respective tariff laws;<p/>
H22 115 <p_><tf|>measure includes any law, regulation, procedure, 
H22 116 requirement or practice;<p/>
H22 117 <p_><tf|>national means a natural person who is a citizen or 
H22 118 permanent resident of a Party and any other natural person referred 
H22 119 to in Annex 201.1;<p/>
H22 120 <p_><tf|>originating means qualifying under the rules of origin set 
H22 121 out in Chapter Four (Rules of Origin);<p/>
H22 122 <p_><tf|>person means a natural person or an enterprise;<p/>
H22 123 <p_><tf_>person of a Party<tf/> means a national, or an enterprise 
H22 124 of a Party;<p/>
H22 125 <p_><tf|>Secretariat means the Secretariat established under 
H22 126 Article 2002(1) (The Secretariat);<p/>
H22 127 <p_><tf_>state enterprise<tf/> means an enterprise that is owned, 
H22 128 or controlled through ownership interests, by a Party; and<p/>
H22 129 <p_><tf|>territory means for a Party the territory of that Party as 
H22 130 set out in Annex 201.1.<p/>
H22 131 <p_>2. For purposes of this Agreement, unless otherwise specified, 
H22 132 a reference to a state or province includes local governments of 
H22 133 that state or province.<p/>
H22 134 <h_><p_>Annex 201.1<p/>
H22 135 <p_>Country-Specific Definitions<p/><h/>
H22 136 <p_>For purposes of this Agreement, unless otherwise specified:<p/>
H22 137 <p_><tf|>national also includes:<p/>
H22 138 <p_>(a) with respect to Mexico, a national or a citizen according 
H22 139 to Articles 30 and 34, respectively, of the Mexican Constitution; 
H22 140 and<p/>
H22 141 <p_>(b) with respect to the United States, <quote_>"national of the 
H22 142 United States"<quote/> as defined in the existing provisions of the 
H22 143 <tf_>Immigration and Nationality Act<tf/>;<p/>
H22 144 <p_><tf|>territory means:<p/>
H22 145 <p_>(a) with respect to Canada, the territory to which its customs 
H22 146 laws apply, including any areas beyond the territorial seas of 
H22 147 Canada within which, in accordance with international law and its 
H22 148 domestic law, Canada may exercise rights with respect to the seabed 
H22 149 and subsoil and their natural resources;<p/>
H22 150 <p_>(b) with respect to Mexico,<p/>
H22 151 <p_>(i) the states of the Federation and the Federal District,<p/>
H22 152 <p_>(ii) the islands, including the reefs and keys, in adjacent 
H22 153 seas,<p/>
H22 154 <p_>(iii) the islands of Guadalupe and Revillagigedo situated in 
H22 155 the Pacific Ocean,<p/>
H22 156 <p_>(iv) the continental shelf and the submarine shelf of such 
H22 157 islands, keys and reefs,<p/>
H22 158 <p_>(v) the waters of the territorial seas, in accordance with 
H22 159 international law, and its interior maritime waters,<p/>
H22 160 <p_>(vi) the space located above the national territory, in 
H22 161 accordance with international law, and<p/>
H22 162 <p_>(vii) any areas beyond the territorial seas of Mexico within 
H22 163 which, in accordance with international law, including the 
H22 164 <tf_>United Nations Convention on the Law of the Sea<tf/>, and its 
H22 165 domestic law, Mexico may exercise rights with respect to the seabed 
H22 166 and subsoil and their natural resources; and<p/>
H22 167 <p_>(c) with respect to the United States,<p/>
H22 168 <p_>(i) the customs territory of the United States, which includes 
H22 169 the 50 states, the District of Columbia and Puerto Rico,<p/>
H22 170 <p_>(ii) the foreign trade zones located in the United States and 
H22 171 Puerto Rico, and<p/>
H22 172 <p_>(iii) any areas beyond the territorial seas of the United 
H22 173 States within which, in accordance with international law and its 
H22 174 domestic law, the United States may exercise rights with respect to 
H22 175 the seabed and subsoil and their natural resources.<p/>
H22 176 <h_><p_>PART TWO<p/>
H22 177 <p_>TRADE IN GOODS<p/>
H22 178 <p_>Chapter Three<p/>
H22 179 <p_>National Treatment and Market Access for Goods<p/><h/>
H22 180 <p_>Article 300: Scope and Coverage<p/>
H22 181 <p_>This Chapter applies to trade in goods of a Party, 
H22 182 including:<p/>
H22 183 <p_>(a) goods covered by Annex 300-A (Trade and Investment in the 
H22 184 Automotive Sector),<p/>
H22 185 <p_>(b) goods covered by Annex 300-B (Textile and Apparel Goods), 
H22 186 and<p/>
H22 187 <p_>(c) goods covered by another Chapter in this Part,<p/>
H22 188 <p_>except as provided in such Annex or Chapter.<p/>
H22 189 <h_><p_>Section A - National Treatment<p/><h/>
H22 190 <h_><p_>Article 301: National Treatment<p/><h/>
H22 191 <p_>1. Each Party shall accord national treatment to the goods of 
H22 192 another Party in accordance with Article III of the <tf_>General 
H22 193 Agreement on Tariffs and Trade<tf/> (GATT), including its 
H22 194 interpretative notes, and to this end Article III of the GATT and 
H22 195 its interpretative notes, or any equivalent provision of a 
H22 196 successor agreement to which all Parties are party, are 
H22 197 incorporated into and made part of this Agreement.<p/>
H22 198 <p_>2. The provisions of paragraph 1 regarding national treatment 
H22 199 shall mean, with respect to a state or province, treatment no less 
H22 200 favorable than the most favorable treatment accorded by such state 
H22 201 or province to any like, directly competitive or substitutable 
H22 202 goods, as the case may be, of the Party of which it forms a 
H22 203 part.<p/>
H22 204 <p_>3. Paragraphs 1 and 2 do not apply to the measures set out in 
H22 205 Annex 301.3.<p/>
H22 206 <h_><p_>Section B - Tariffs<p/><h/>
H22 207 <h_><p_>Article 302: Tariff Elimination<p/><h/>
H22 208 <p_>1. Except as otherwise provided in this Agreement, no Party may 
H22 209 increase any existing customs duty, or adopt any customs duty, on 
H22 210 an originating good.<p/>
H22 211 <p_>2. Except as otherwise provided in this Agreement, each Party 
H22 212 shall progressively eliminate its customs duties on originating 
H22 213 goods in accordance with its Schedule to Annex 302.2.<p/>
H22 214 <p_>3. On the request of any Party, the Parties shall consult to 
H22 215 consider accelerating the elimination of customs duties set out in 
H22 216 their Schedules. An agreement between two or more Parties to 
H22 217 accelerate the elimination of a customs duty on a good shall 
H22 218 supersede any duty rate or staging category determined pursuant to 
H22 219 their Schedules for such good when approved by each such Party in 
H22 220 accordance with its applicable legal procedures.<p/>
H22 221 <p_>4. Each Party may adopt or maintain import measures to allocate 
H22 222 in-quota imports made pursuant to a tariff rate quota set out in 
H22 223 Annex 302.2, provided that such measures do not have trade 
H22 224 restrictive effects on imports additional to those caused by the 
H22 225 imposition of the tariff rate quota.<p/>
H22 226 <p_>5. On written request of any Party, a Party applying or 
H22 227 intending to apply measures pursuant to paragraph 4 shall consult 
H22 228 to review the administration of those measures.<p/>
H22 229 <h_><p_>Article 303: Restriction on Drawback and Duty Deferral 
H22 230 Programs<p/><h/>
H22 231 <p_>1. Except as otherwise provided in this Article, no Party may 
H22 232 refund the amount of customs duties paid, or waive or reduce the 
H22 233 amount of customs duties owed, on a good imported into its 
H22 234 territory, on condition that the good is:<p/>
H22 235 <p_>(a) subsequently exported to the territory of another Party,<p/>
H22 236 <p_>(b) used as a material in the production of another good that 
H22 237 is subsequently exported to the territory of another Party, or<p/>
H22 238 <p_>(c) substituted by an identical or similar good used as a 
H22 239 material in the production of another good that is subsequently 
H22 240 exported to the territory of another Party,<p/>
H22 241 <p_>in an amount that exceeds the lesser of the total amount of 
H22 242 customs duties paid or owed on the good on importation into its 
H22 243 territory and the total amount of customs duties paid to another 
H22 244 Party on the good that has been subsequently exported to the 
H22 245 territory of that other Party.<p/>
H22 246 <p_>2. No Party may, on condition of export, refund, waive or 
H22 247 reduce:<p/>
H22 248 <p_>(a) an antidumping or countervailing duty that is applied 
H22 249 pursuant to a Party's domestic law and that is not applied 
H22 250 inconsistently with Chapter Nineteen (Review and Dispute Settlement 
H22 251 in Antidumping and Countervailing Duty Matters);<p/>
H22 252 <p_>(b) a premium offered or collected on an imported good arising 
H22 253 out of any tendering system in respect of the administration of 
H22 254 quantitative import restrictions, tariff rate quotas or tariff 
H22 255 preference levels;<p/>
H22 256 <p_>(c) a fee applied pursuant to section 22 of the U.S. 
H22 257 <tf_>Agricultural Adjustment Act<tf/>, subject to Chapter Seven 
H22 258 (Agriculture and Sanitary and Phytosanitary Measures); or<p/>
H22 259 <p_>(d) customs duties paid or owed on a good imported into its 
H22 260 territory and substituted by an identical or similar good that is 
H22 261 subsequently exported to the territory of another Party.<p/>
H22 262 
H22 263 
H23   1 <#FROWN:H23\><h_><p_>DEVELOPMENTS IN FEDERAL-STATE RELATIONS, 
H23   2 1990-91<p/>
H23   3 <p_>By John Kincaid<p/><h/>
H23   4 <p_>The continuing federal fiscal crisis and the developing fiscal 
H23   5 crisis in state and local governments dominated intergovernmental 
H23   6 relations in 1990 and 1991 as the nation entered its deepest 
H23   7 recession since the early 1980s. On Jan. 1, 1991, <tf_>The 
H23   8 Washington Post<tf/> headlined a story, <quote_>"Big Fiscal Woes 
H23   9 Await Governors in Northeast."<quote/> As problems spread to more 
H23  10 states, the <tf|>Post headlined an April story, <quote_>"Recession, 
H23  11 Soaring Medicaid Costs Put the Squeeze on State Budgets."<quote/> 
H23  12 By June 30, 1991 a <tf|>Post headline read, <quote_>"Facing Year of 
H23  13 Living Penuriously, States Slash Costs, Beef Up Taxes."<quote/><p/>
H23  14 <p_>Overall, state expenditures were $533.7 billion in fiscal 1991, 
H23  15 up 8.8 percent from the previous year. However, the average 
H23  16 general-fund balance for the 50 states at the end of fiscal 1991 
H23  17 was 1.5 percent, the smallest since fiscal 1983 (Howard 1991, 18). 
H23  18 At the same time, about 34 states raised taxes. The total increase 
H23  19 was in the range of $14.4 billion to $16.2 billion - the largest 
H23  20 ever one-year increase (Gold 1991, 623-626).<p/>
H23  21 <p_>The results of these developments, wrote <tf_>New York 
H23  22 Times<tf/> columnist Russell Baker on July 9, 1991, are 
H23  23 <quote_>"predictable: Hordes of governors, mayors and county 
H23  24 supervisors will be voted out of business in 1992. At the same 
H23  25 time, the usual 95 to 98 percent of Congress and President Bush 
H23  26 will enjoy re-election."<quote/><p/>
H23  27 <p_>By the end of the year, though, George Bush, who seemed 
H23  28 unbeatable after the American victory in the Gulf War in February 
H23  29 1991, was in trouble with voters because of the recession. Bush's 
H23  30 plunge in the polls was counterbalanced only by continued public 
H23  31 disdain for the Congress, a mood exacerbated in 1991 by the 
H23  32 Clarence Thomas-Anita Hill controversy before the Senate Judiciary 
H23  33 Committee and by revelations of bounced checks at the House bank 
H23  34 and unpaid bills at the House restaurant.<p/>
H23  35 <p_>The disarray in Washington increased the fiscal and policy 
H23  36 problems facing state and local officials. These officials 
H23  37 generally attributed their problems to: the deepening recession; 
H23  38 increasing demands and costs for social welfare; increasing federal 
H23  39 mandates and conditions of aid, especially in Medicaid; reductions 
H23  40 in federal aid; and adverse federal court decisions. Some critics 
H23  41 charged, though, that states were reaping the consequences of 
H23  42 profligate spending during the growth years of 1984-1989 (Moore 
H23  43 1991). State spending had increased by more than 100 percent during 
H23  44 the 1980s - above the rates of inflation and the increase in 
H23  45 federal spending.<p/>
H23  46 <p_>States also experienced pressures form the rising costs of: 
H23  47 health care, due partly to inflation, mandates, and long-term care 
H23  48 costs; education, due partly to reform efforts, teachers' lobbying 
H23  49 and rising enrollments; and corrections, due in part to federal 
H23  50 court orders, the drug war and mandatory sentencing policies. At 
H23  51 the same time, states were widely criticized in the media for 
H23  52 trying to balance their budgets on the backs of the poor, and by 
H23  53 other observers for slowing economic recovery by raising taxes and 
H23  54 cutting spending.<p/>
H23  55 <p_>Hence, for many state and local officials, 1991 ended on a sour 
H23  56 intergovernmental note. The mood was reflected in a commentary by 
H23  57 the executive director of the National Governors' Association, who 
H23  58 wrote that recovery from the 1991-1992 recession <quote_>"will not 
H23  59 resemble the 1980s, when state revenues grew an average of 9 
H23  60 percent a year throughout the decade and plenty of money was 
H23  61 available for new programs. Instead, the 1990s will be a period of 
H23  62 scarcity and adjustment."<quote/> He added, <quote_>"State 
H23  63 government will no longer have the fiscal capacity to assume 
H23  64 additional responsibilities from the federal and local governments. 
H23  65 Efforts to shift responsibilities to states will meet increased 
H23  66 resistance"<quote/> (Scheppach 1991, 1-2).<p/>
H23  67 <h_><p_>Public opinion<p/><h/>
H23  68 <p_>The possible effects of these developments on public attitudes 
H23  69 toward the states were reflected in a 1991 national opinion poll 
H23  70 commissioned by the U.S. Advisory Commission on Intergovernmental 
H23  71 Relations (ACIR). The proportion of respondents saying that states 
H23  72 spend their tax dollars the most wisely of all governments in the 
H23  73 federal system dropped from 20 percent in 1990 to 14 percent in 
H23  74 1991. Those picking local government declined slightly, from 36 
H23  75 percent to 35 percent, while respondents selecting the federal 
H23  76 government, actually increased slightly from 11 percent to 12 
H23  77 percent. More dramatically, the percentage of Americans 
H23  78 volunteering that none of the three governments spends their tax 
H23  79 dollars wisely jumped from 19 percent to 27 percent.<p/>
H23  80 <p_>The proportion of respondents saying they get the <quote_>"most 
H23  81 of their money"<quote/> from state government declined from 23 
H23  82 percent in 1989 to 22 percent in 1991. However, the percentage 
H23  83 dropped from 33 to 26 for the federal government while increasing 
H23  84 from 29 percent to 31 percent for local governments.<p/>
H23  85 <p_>The proportion of poll respondents who picked the state income 
H23  86 tax as <quote_>"the worst tax"<quote/> increased from 10 percent in 
H23  87 1989 to 12 percent in 1991. Those picking the state sales tax as 
H23  88 the worst increased from 18 percent to 19 percent, while those 
H23  89 selecting the federal income tax declined from 27 percent to 26 
H23  90 percent, and the local property tax, from 32 percent to 30 
H23  91 percent.<p/>
H23  92 <p_>Even so, when asked how well their state and the federal 
H23  93 government cooperate, 7 percent said <quote_>"very well"<quote/> 
H23  94 and 43 percent said <quote_>"fairly well."<quote/> When asked the 
H23  95 same of their state and local government, 9 percent said 
H23  96 <quote_>"very well"<quote/> and 50 percent said <quote_>"fairly 
H23  97 well."<quote/> Overall, these respondents seemed more up-beat about 
H23  98 federal-state cooperation than many activists in the 
H23  99 intergovernmental community, despite the fact that public 
H23 100 discontent with state governments appeared to have risen with the 
H23 101 downturn in the economy. The most negative public views of state 
H23 102 governments, and of federal-state and state-local cooperation, were 
H23 103 found in the Northeast (ACIR 1991).<p/>
H23 104 <h_><p_>Public Pressure for Term Limits<p/><h/>
H23 105 <p_>Another indicator of public discontent with state government, 
H23 106 as well as the U.S. Congress, was the term limitation movement. 
H23 107 Although a term-limit measure failed on the 1991 Washington state 
H23 108 ballot, such measures already had been approved in California, 
H23 109 Colorado and Oklahoma in 1990, and were advocated in about 35 other 
H23 110 states. In response, the National Conference of State Legislatures 
H23 111 began a public education campaign to improve public perceptions of 
H23 112 state legislatures.<p/>
H23 113 <p_>While the wisdom of term limits is certainly debatable, 
H23 114 attempts to limit the terms of members of Congress raise 
H23 115 constitutional questions. Many observers believe the states cannot 
H23 116 unilaterally limit the number of terms served by their 
H23 117 Congressional members. After all, the framers of the U.S. 
H23 118 Constitution rejected a term limit, and the term limit imposed on 
H23 119 presidents required a constitutional amendment.<p/>
H23 120 <p_>Yet, the situation with the Congress is different. Each member 
H23 121 represents one state or substate jurisdiction. No one state or 
H23 122 group of states could unilaterally limit presidential terms; but 
H23 123 the voters of each state, as a sovereign entity, are arguably free 
H23 124 to limit the number of terms served by their representatives in 
H23 125 Congress, just as they can limit the number of terms served by any 
H23 126 of their other elected officials. Although the U.S. Constitution 
H23 127 contains no term limit, neither does it explicitly prohibit a state 
H23 128 from setting a limit for its representatives. The Constitution 
H23 129 specifies only the length of terms to be served by Senate and House 
H23 130 members.<p/>
H23 131 <h_><p_>Federal Turnovers v. State Turn-ups<p/><h/>
H23 132 <p_>For most state officials during this period, term limits were 
H23 133 of less immediate concern than fiscal limits. States continued to 
H23 134 press the federal government for fiscal and economic relief and for 
H23 135 federal assumption of certain fiscal responsibilities, such as 
H23 136 long<?_>-<?/>term care under Medicaid. Some conflict also developed 
H23 137 among states, especially over the bailout of the savings and loan 
H23 138 industry. Officials in the Northeast and Midwest argued the bailout 
H23 139 is shifting funds from their coffers to states such as Texas, New 
H23 140 Mexico, Arizona, Alaska, Kansas and Louisiana - all net gainers of 
H23 141 bailout monies.<p/>
H23 142 <p_>In contrast to state emphases on fiscal 'turn-ups' and an 
H23 143 economic turnaround, President Bush proposed in his 1991 State of 
H23 144 the Union address to 'turn over' to the states $15 billion to $20 
H23 145 billion of grant programs in a fully funded, consolidated block 
H23 146 grant, with essentially level funding guaranteed through fiscal 
H23 147 1996. Bush listed 11 examples of what could be turned over, and 
H23 148 said these programs were subject to 1,028 pages of regulation in 
H23 149 the <tf_>Federal Register<tf/>, requiring about 4.2 million hours 
H23 150 of paperwork per year. The programs included four in education; EPA 
H23 151 sewage construction grants; three in health and human services; two 
H23 152 in housing and urban development; and the Byrne Memorial State and 
H23 153 Local Law Enforcement Assistance Program.<p/>
H23 154 <p_>The proposal generally was well received by governors and state 
H23 155 legislators, but not by mayors and members of Congress. House 
H23 156 Majority Leader Richard A. Gephardt suggested, instead, that the 
H23 157 federal government increase by 2 percent the taxes on some 
H23 158 corporate income to fund state education programs. To qualify for 
H23 159 these bonus funds, states would be required to show that all 
H23 160 children entering first grade were recipients of prenatal and 
H23 161 well-baby care, nutrition screening, immunizations and early 
H23 162 childhood education. The proposal received little attention.<p/>
H23 163 <p_>City officials opposed Bush's proposal, primarily because the 
H23 164 examples included programs of direct interest to them, especially 
H23 165 the Community Development Block Grant, certain public housing 
H23 166 funds, low-income energy assistance and impact aid for local 
H23 167 schools. Robert M. Isaac, president of the U.S. Conference of 
H23 168 Mayors, said that states cannot be trusted with block grant monies. 
H23 169 He argued, for example, that under the Drug Abuse Act of 1986, 
H23 170 states disburse funds that are too late and too little for local 
H23 171 governments.<p/>
H23 172 <p_>Both the National Governors' Association and National 
H23 173 Conference of State Legislatures developed alternative proposals to 
H23 174 present to the White House in April 1991. Missouri Gov. John 
H23 175 Ashcroft, then vice-chairman of the National Governors' 
H23 176 Association, emphasized the flexibility afforded by block grants. 
H23 177 <quote_>"A prime example of the lack of flexibility in 
H23 178 Missouri,"<quote/> he said, <quote_>"is that social service 
H23 179 caseworkers must document by 15-minute intervals the time spent for 
H23 180 individual Medicaid, Aid to Families with Dependent Children, and 
H23 181 food stamp cases"<quote/> (National Governors' Association 1991, 
H23 182 3). Both proposals allayed the major concerns of local officials by 
H23 183 excluding programs of vital interest to them (McDowell 1991, 8-11). 
H23 184 The National Governors' Association proposed to consolidate 42 
H23 185 categorical programs and six loan and loan-guarantee programs into 
H23 186 a $15.2 billion block grant having eight functional components. The 
H23 187 National Conference of State Legislatures proposed to consolidate 
H23 188 about 85 categorical grants into 12 block grants falling into five 
H23 189 categories and funded at $21.2 billion.<p/>
H23 190 <p_>Virtually nothing was heard about the turnover until December 
H23 191 1991, when President Bush informed the National League of Cities 
H23 192 that he would announce a new turnover in his 1992 State of the 
H23 193 Union address. Bush proposed a consolidated block grant consisting 
H23 194 of 25 programs in: education (12 programs); environmental 
H23 195 protection (EPA's sewage construction program); health and human 
H23 196 services (Maternal and Child Health Block Grant, Social Services 
H23 197 Block Grant, and state administrative expenses for Medicaid, Aid to 
H23 198 Families with Dependent Children, and Food Stamps); justice (drug 
H23 199 control and juvenile justice); and four other programs (job 
H23 200 training for the homeless, Agriculture Stabilization and 
H23 201 Conservation Service cost share, community service employment for 
H23 202 older Americans, and the National and Community Services Act). The 
H23 203 proposed budget outlay was $14.6 billion for fiscal 1993, projected 
H23 204 to $15.7 billion in fiscal 1997. The 1992 proposal did reflect some 
H23 205 of the modifications that had been suggested by the National 
H23 206 Governors' Association and National Conference of State 
H23 207 Legislatures, and dropped most of the programs that had drawn the 
H23 208 strongest objections from local governments.<p/>
H23 209 <p_>The President said in the budget proposal that his goal was 
H23 210 <quote_>"to move power and decision-making authority closer to the 
H23 211 people and allow state and local governments greater flexibility to 
H23 212 manage programs more efficiently and effectively. The proposed 
H23 213 block grant encourages the natural innovative powers of state and 
H23 214 local governments as laboratories of change."<quote/> The proposal 
H23 215 contained a hold-harmless provision, transitional arrangements and 
H23 216 requirements for intended use reports and audits to ensure that 
H23 217 states spend the money for the intended purposes. State officials 
H23 218 appeared to be cautiously optimistic about the plan, though they 
H23 219 expressed concern about the prospects for passage and the fact that 
H23 220 <quote_>"it mixes and matches entitlements and discretionary 
H23 221 programs"<quote/> (Perlman 1992, 23).<p/>
H23 222 <p_>In light of the recession and the upcoming presidential 
H23 223 election, Bush's overall $1.52 trillion fiscal 1993 budget proposal 
H23 224 drew mixed reviews.
H23 225 
H24   1 <#FROWN:H24\><h_><p_>Fuels Used in Farming<p/><h/>
H24   2 <p_>You may be eligible to claim a credit or refund of excise taxes 
H24   3 included in the price of fuel used on a farm for farming purposes, 
H24   4 if you are the owner, tenant, or operator of a farm. You may claim 
H24   5 <tf|>only a credit for gasoline and special motor fuel used on a 
H24   6 farm for farming purposes. You may claim either a credit or refund 
H24   7 for diesel fuel and aviation fuel used on a farm for farming 
H24   8 purposes.<p/>
H24   9 <p_><tf_>A farm includes<tf/> livestock (including feed yards for 
H24  10 fattening cattle), dairy, fish, poultry, fruit, fur-bearing 
H24  11 animals, truck farms, orchards, plantations, ranches, nurseries, 
H24  12 ranges, and structures such as greenhouses or horticultural 
H24  13 commodities. A fish farm is an area where fish are grown or raised 
H24  14 - not merely caught or harvested. The farm must be operated for 
H24  15 profit and located in any of the 50 States or the District of 
H24  16 Columbia.<p/>
H24  17 <p_><tf_>Farming purposes.<tf/> Fuel is used on a farm for farming 
H24  18 purposes if it is used:<p/>
H24  19 <p_>1) To cultivate the soil, or to raise or harvest any 
H24  20 agricultural or horticultural commodity.<p/>
H24  21 <p_>2) To raise, shear, feed, care for, train or manage livestock, 
H24  22 bees, poultry, fur-bearing animals, or wildlife.<p/>
H24  23 <p_>3) To operate, manage, conserve, improve, or maintain your 
H24  24 farm, tools, or equipment.<p/>
H24  25 <p_>4) To handle, dry, pack, grade, or store any raw agricultural 
H24  26 or horticultural commodity (as provided below).<p/>
H24  27 <p_>5) To plant, cultivate, care for, or cut trees, or to prepare 
H24  28 (other than the sawing into lumber, the chipping or other milling) 
H24  29 trees for market, but only if the planting, etc., is incidental to 
H24  30 your farming operations (as provided below).<p/>
H24  31 <p_>Fuel is used on a farm for farming purposes when it is used by 
H24  32 you to handle, dry, pack, grade, or store a raw commodity, but only 
H24  33 if you produced more than one-half of the commodity which was so 
H24  34 treated during the tax year. Commodity refers to a single raw 
H24  35 product. For example, apples would be one commodity, and peaches 
H24  36 another. The more than one-half test applies separately to each 
H24  37 commodity.<p/>
H24  38 <p_>Fuel used in incidental tree operations on your farm may not be 
H24  39 included in a claim unless the operations are minor in nature when 
H24  40 compared to the total farming operations.<p/>
H24  41 <p_>Fuel used on a farm for farming purposes includes fuel used by 
H24  42 you as the owner, tenant, or operator, and fuel used by a neighbor 
H24  43 or a custom operator who performs services for you to cultivate the 
H24  44 soil, raise or harvest any agricultural or horticultural commodity, 
H24  45 or to raise, shear, feed, care for, train or manage livestock, 
H24  46 bees, poultry, fur-bearing animals, or wildlife.<p/>
H24  47 <p_>If you have a neighbor, custom operator, or any other person 
H24  48 perform any other services for you on your farm, <tf_>no one<tf/> 
H24  49 can claim the credit for fuel used on a farm for farming purposes 
H24  50 for these services.<p/>
H24  51 <p_>If there is doubt whether fuel was purchased by the owner, the 
H24  52 tenant, or the operator of a farm, determine who actually bore the 
H24  53 cost of the fuel. For example, if the owner of a farm and the 
H24  54 tenant share the cost of the fuel 50-50, then each can claim a 
H24  55 credit for the tax on one-half of the fuel used. Also, if you sell 
H24  56 fuel to a neighbor who uses it on a farm for farming purposes, your 
H24  57 neighbor (not you) can claim the credit on the fuel you sold, 
H24  58 because your neighbor bore the cost of the fuel.<p/>
H24  59 <p_><tf|>Cropdusting. The use of fuel in the aerial or other 
H24  60 application of fertilizers, pesticides, or other substances is a 
H24  61 use of fuel on a farm for farming purposes. You as the owner, 
H24  62 tenant, or operator, may claim the credit or refund. If you do not 
H24  63 file a claim, you may waive your right to the claim, and then the 
H24  64 claim can be made by the applicator. The applicator is treated as 
H24  65 having used the fuel on a farm for farming purposes.<p/>
H24  66 <p_><tf|>Waiver. To waive your right to the credit or refund, you 
H24  67 must:<p/>
H24  68 <p_>1) Execute in writing an irrevocable statement that you 
H24  69 knowingly give up your right to the credit or refund.<p/>
H24  70 <p_>2) Identify clearly the time period that the waiver covers. The 
H24  71 effective period of your waiver cannot extend beyond the last day 
H24  72 of your tax year.<p/>
H24  73 <p_>3) Sign the waiver before the applicator files his or her 
H24  74 claim. Once signed, the waiver cannot be revoked. You may authorize 
H24  75 an agent, such as a cooperative, to sign the waiver for you.<p/>
H24  76 <p_>4) Keep a copy of the waiver for your records and give a copy 
H24  77 of the signed waiver to the applicator. Do <tf|>not send this 
H24  78 waiver to the Internal Revenue Service, unless requested to do 
H24  79 so.<p/>
H24  80 <p_>The waiver may be a separate document or it may appear on an 
H24  81 invoice or another document from the applicator. If the waiver 
H24  82 appears on an invoice or other document, it must be printed in a 
H24  83 section clearly set off from all other material, and it must be 
H24  84 printed in type sufficiently large to put you on notice that you 
H24  85 are waiving your right to the credit or refund. In addition, if the 
H24  86 waiver appears as part of an invoice or other document, it must be 
H24  87 written separately from any other item that requires your 
H24  88 signature.<p/>
H24  89 <p_>Sign a separate waiver for each tax year or part of a tax year 
H24  90 in which the fuel was used. If any part of the waiver period 
H24  91 extends beyond the end of the applicator's tax year, the applicator 
H24  92 must wait until the next tax year to claim the credit or refund for 
H24  93 that part.<p/>
H24  94 <p_><tf_>Fuel not used for farming.<tf/> Fuel is not used for 
H24  95 farming purposes when used:<p/>
H24  96 <p_>Off the farm, such as on the highway or in 
H24  97 non<?_>-<?/>commercial aviation, even though the fuel is used in 
H24  98 transporting livestock, feed, crops, or equipment;<p/>
H24  99 <p_>For personal use, such as mowing the lawn;<p/>
H24 100 <p_>In processing, packaging, freezing, or canning operations; 
H24 101 or<p/>
H24 102 <p_>In the processing of crude gum into gum spirits of turpentine 
H24 103 or gum resin, or in the processing of maple sap into maple syrup or 
H24 104 maple sugar.<p/>
H24 105 <h_><p_>Fuels Used in Commercial Fishing Boats<p/><h/>
H24 106 <p_>You may be eligible to claim a credit or refund of excise tax 
H24 107 included in the price of fuel if you use the fuel in a boat used in 
H24 108 the fisheries or whaling business.<p/>
H24 109 <p_>Boats used in fishing include only watercraft used in taking, 
H24 110 catching, processing, or transporting fish, shellfish, or other 
H24 111 aquatic life for commercial purposes, such as selling or processing 
H24 112 the catch, on a specific trip basis. Both fresh and salt water 
H24 113 fisheries are included. Commercial fishing boats do not include 
H24 114 watercraft used on a specific trip for both sport fishing and 
H24 115 commercial fishing. For example, a boat is not engaged in 
H24 116 commercial fishing if on the same trip it is used for marlin sport 
H24 117 fishing and for catching tuna. Fuel used in aircraft to locate fish 
H24 118 is not fuel used in commercial fishing.<p/>
H24 119 <h_><p_>Fuels Used in Off-Highway Business Use<p/><h/>
H24 120 <p_>You may be eligible to claim a credit or refund of excise tax 
H24 121 included in the price of fuel if you used the fuel in an 
H24 122 off-highway business use.<p/>
H24 123 <p_><tf_>Off-highway business use<tf/> is any use of fuel in a 
H24 124 trade or business or in any income-producing activity. The use must 
H24 125 not be in a highway vehicle registered for use on public highways 
H24 126 unless the vehicle is owned by the United States. If a vehicle 
H24 127 owned by the United States is registered for highway use, but is 
H24 128 not actually used on a public highway during the period for which 
H24 129 the claim is made, its use is still an off-highway business use. 
H24 130 Off-highway business use does not include any use in a 
H24 131 motorboat.<p/>
H24 132 <p_><tf_>Highway vehicle<tf/> includes any self-propelled vehicle 
H24 133 designed to carry a load over public highways, whether or not also 
H24 134 designed to perform other functions.<p/>
H24 135 <p_>It does not matter if the vehicle is designed to perform a 
H24 136 highway transportation function for only a particular type of load, 
H24 137 such as passengers, furnishings, and personal effects (as in a 
H24 138 house, office, or utility trailer), or a special kind of cargo, 
H24 139 goods, supplies, or materials. It does not matter if machinery or 
H24 140 equipment is specially designed (and permanently mounted) to 
H24 141 perform some off-highway task unrelated to highway transportation 
H24 142 except to the extent discussed in the next paragraph. Examples of 
H24 143 vehicles that are designed to carry a load over public highways are 
H24 144 passenger automobiles, motorcycles, buses, highway-type trucks, and 
H24 145 truck tractors.<p/>
H24 146 <p_><tf_>Vehicles not considered highway vehicles.<tf/> Generally, 
H24 147 the following kinds of vehicles are not considered highway 
H24 148 vehicles:<p/>
H24 149 <p_>1) Specially designed mobile machinery for nontransportation 
H24 150 functions. A self-propelled vehicle is not a highway vehicle if it 
H24 151 consists of a chassis that-<p/>
H24 152 <p_>Has permanently mounted to it machinery or equipment used to 
H24 153 perform certain operations (construction, manufacturing, drilling, 
H24 154 mining, timbering, processing, farming, or similar operations) if 
H24 155 the operation of the machinery or equipment is unrelated to 
H24 156 transportation on or off the public highways.<p/>
H24 157 <p_>Has been specially designed to serve only as a mobile carriage 
H24 158 and mount for the machinery or equipment, whether or not the 
H24 159 machinery or equipment is in operation, and<p/>
H24 160 <p_>Could not be used, because of its special design, as part of a 
H24 161 vehicle designed to carry any other load without substantial 
H24 162 structural modification.<p/>
H24 163 <p_>2) Vehicles designed for off-highway transportation. A 
H24 164 self-propelled vehicle is not a highway vehicle if-<p/>
H24 165 <p_>The vehicle is designed primarily to carry a specific kind of 
H24 166 load other than over the public highway for certain operations 
H24 167 (construction, manufacturing, mining, processing, farming, 
H24 168 drilling, timbering, or similar operations), and<p/>
H24 169 <p_>The vehicle's use of carrying this load over public highways is 
H24 170 substantially limited or impaired because of its design. To 
H24 171 determine if the vehicle is substantially limited or impaired, you 
H24 172 may take into account whether the vehicle may travel at regular 
H24 173 highway speeds, requires a special permit for highway use, or is 
H24 174 overweight, overheight, or overwidth for regular highway use.<p/>
H24 175 <p_><tf_>A public highway<tf/> includes any road in the United 
H24 176 States that is no a private roadway. This includes federal, state, 
H24 177 county, and city roads and streets.<p/>
H24 178 <p_><tf|>Registered. A vehicle is considered registered when it is 
H24 179 registered or required to be registered for highway use under the 
H24 180 law of any state, the District of Columbia, or any foreign country 
H24 181 in which it is operated or situated.<p/>
H24 182 <p_>Any highway vehicle operated under a dealer's tag, license, or 
H24 183 permit is considered registered. A highway vehicle is not 
H24 184 considered registered solely because there has been issued a 
H24 185 special permit for operation of the vehicle at particular times and 
H24 186 under specified conditions.<p/>
H24 187 <p_><tf_>Fuels used in power take-offs.<tf/> You are not allowed a 
H24 188 credit or refund for fuel used in the motor of a highway vehicle 
H24 189 that operates special equipment by means of a power take-off or 
H24 190 power transfer. It does not matter if the special equipment is 
H24 191 mounted on the vehicle. For example, there is no credit or refund 
H24 192 on gasoline used to operate the mixing unit on a concrete-mixer 
H24 193 truck when the mixing unit is operated by a power take-off from the 
H24 194 motor of the vehicle. Similarly, fuel used in the motor of a 
H24 195 registered fuel-oil delivery truck to operate the pump on the truck 
H24 196 for discharging the fuel into the customer's storage tank does not 
H24 197 qualify for a credit or refund of tax.<p/>
H24 198 <p_>If your registered highway vehicle is equipped with a separate 
H24 199 motor to operate the special equipment, such as a refrigeration 
H24 200 unit, pump, generator, or mixing unit, the fuel you use in the 
H24 201 separate motor qualifies. When fuel is drawn from the same tank 
H24 202 that supplies fuel for propelling the vehicle, you must figure the 
H24 203 quantity used in the separate motor operating the special 
H24 204 equipment. Your reasonable estimate of the amount of fuel used will 
H24 205 be accepted for a credit or a refund. The figure must be based, 
H24 206 however, on operating experience and supported by your records. 
H24 207 Devices to measure the number of miles the vehicle has traveled, 
H24 208 such as hubometers, may be used to figure the number of gallons of 
H24 209 fuel used to propel the vehicle. Add to this amount the fuel 
H24 210 consumed while idling or warming up the motor preparatory to 
H24 211 propelling the vehicle.<p/>
H24 212 
H25   1 <#FROWN:H25\><h_><p_>Taking Stock: Community Development 25 Years 
H25   2 Later<p/><h/>
H25   3 <p_><tf_>New York, N.Y<tf/>. - Twenty-five years after the civil 
H25   4 rights movement and the war on poverty spawned a resurgence of 
H25   5 community efforts to combat poverty, representatives from seven of 
H25   6 the country's oldest community development corporations met at the 
H25   7 Ford Foundation to survey the road they had traveled.<p/>
H25   8 <p_>The first order of business was defining just what a community 
H25   9 development corporation is. Rocky Mitchell, president of the 
H25  10 Bedford Stuyvesant Restoration Corporation in Brooklyn, N.Y., said 
H25  11 the person best qualified to offer a definition in his organization 
H25  12 was the switchboard operator. <quote_>"A couple of months 
H25  13 ago,"<quote/> said Mitchell, <quote_>"someone from the community 
H25  14 called Restoration to report that the house next door to them was 
H25  15 on fire. I think that's an indication of how we're perceived by a 
H25  16 lot of people in the community."<quote/><p/>
H25  17 <p_>Mitchell's organization may not put out fires but, over the 
H25  18 last 25 years, it has performed enough services to be routinely 
H25  19 described as <quote_>"the city hall of Bedford-Stuyvesant."<quote/> 
H25  20 Everyone agreed that since their organizations were defined 
H25  21 primarily by the needs of the communities they served, there was no 
H25  22 'cookie-cutter' definition to their work, but 'city hall' seemed to 
H25  23 fit admirably well.<p/>
H25  24 <p_>The two-day conference, held in early November, marked the 
H25  25 first time the seven groups - known as 'mature' CDCs - had sat down 
H25  26 together around the same table. It was convened by the Foundation's 
H25  27 Urban Poverty program so that the organizations' leaders could 
H25  28 reflect on their shared experience and define the main issues 
H25  29 confronting them in the 1990s. Participating organizations were: 
H25  30 the Bedford Stuyvesant Restoration Corporation (BSRC); the Mexican 
H25  31 American Unity Council (MAUC), from San Antonio; Mississippi Action 
H25  32 for Community Education (MACE), from Jackson; the Spanish-Speaking 
H25  33 Unity Council (SSUC), from Oakland, Calif.; Watts Labor Community 
H25  34 Action Committee (WLCAC), from Los Angeles; New Community 
H25  35 Corporation (NCC), from Newark, N.J.; and Chicanos Por La Causa 
H25  36 (CPLC), from Phoenix, Ariz.<p/>
H25  37 <p_>All of the groups were organized in the 1960s, when the issues 
H25  38 of poverty and discrimination first burst onto the national agenda. 
H25  39 There was a clear need then for organizations that could combine 
H25  40 the technical and professional skills of a government agency with 
H25  41 the street wisdom, motivation, and local pride found in many 
H25  42 community-based groups.<p/>
H25  43 <p_>Such CDCs were part of a generation of neighborhood 
H25  44 organizations that played a pivotal role in the rebirth of urban 
H25  45 neighborhoods. Emphasizing self-determination and self-help, they 
H25  46 accepted as their mission the improvement of all aspects of a 
H25  47 community's life - physical, economic, and social.<p/>
H25  48 <p_>Over the years the CDCs represented at the conference had all 
H25  49 demonstrated the ability to manage large amounts of public and 
H25  50 private funds, often with great ingenuity, developing programs that 
H25  51 included job training, youth counseling, care for the elderly, 
H25  52 health services, housing rehabilitation, and commercial and 
H25  53 industrial development. In addition, the early CDCs served as the 
H25  54 training grounds for many local leaders.<p/>
H25  55 <p_>In spite of all they had accomplished, all of the groups 
H25  56 reported that their work had to be seen as a <quote_>"holding 
H25  57 action."<quote/> Without substantial public and private 
H25  58 reinvestment, it was felt that no single organization could reverse 
H25  59 a continuing pattern of decline in many of the nation's poor 
H25  60 neighborhoods.<p/>
H25  61 <p_>Moreover, during the 1980s they all had to learn to survive in 
H25  62 an era of drastically diminished support. Larry Farmer, the 
H25  63 president of Mississipi's MACE, articulated a feeling shared by 
H25  64 most of the other CDC leaders when he said, <quote_>"All of us have 
H25  65 been living one step ahead of the sheriff for the last 10 years or 
H25  66 so."<quote/><p/>
H25  67 <p_>In his remarks to the conference, Ford Foundation President 
H25  68 Franklin Thomas, who had been BSRC's first president, serving for 
H25  69 ten years, recalled how tough it had been to get these 
H25  70 organizations going in the mid to late 1960s. <quote_>"Some of 
H25  71 these cities were burning,"<quote/> he said, <quote_>"and we were 
H25  72 all scrambling to try to show something tangible that would give 
H25  73 people a basis for hope and give young people a sense of connection 
H25  74 and empowerment."<quote/><p/>
H25  75 <p_>He called for wider recognition of the challenges the groups 
H25  76 faced in meeting capital and other needs, including leadership 
H25  77 development and staff development. He took particular note of the 
H25  78 devastating impact that the shift in national policy during the 
H25  79 1980s had on these groups. <quote_>"At the same time,"<quote/> said 
H25  80 Thomas, <quote_>"the vision embodied in the early CDCs is one that 
H25  81 the entire community development movement has to return to. For a 
H25  82 development strategy to be worthy of the name, it has to 
H25  83 simultaneously pursue work on housing, business growth, job 
H25  84 training, education, and art, culture, and recreation - because 
H25  85 those are all the elements necessary for a healthy community and a 
H25  86 healthy society."<quote/> He cited what he saw as a <quote_>"real 
H25  87 need to connect this first generation of CDCs with the newer ones 
H25  88 in a way that strengthens the whole."<quote/><p/>
H25  89 <p_>All the conference participants agreed that there hadn't been 
H25  90 enough recognition of how hard it was to carry out that vision. 
H25  91 Reflecting on their difficulties, SSUC's executive director, 
H25  92 Arabella Martinez, said, <quote_>"Over the last decade there's been 
H25  93 a serious erosion of the social safety net. There's less of a will 
H25  94 to do something about the problems of poverty. It's a less caring 
H25  95 society."<quote/><p/>
H25  96 <p_><quote_>"A lot of the time,"<quote/> said Martinez, who was an 
H25  97 assistant secretary in the Department of Health and Human Services 
H25  98 during the Carter Administration, <quote_>"we're taking on 
H25  99 development risks in areas long since abandoned by business and 
H25 100 industry."<quote/> Speaking from her own experience, she said, 
H25 101 <quote_>"If it hadn't been for the Spanish-Speaking Unity Council, 
H25 102 the Fruitvale section of Oakland would look the way the South Bronx 
H25 103 did 10 years ago."<quote/><p/>
H25 104 <p_>Yet, given the shortage of funding, many of the CDCs formed 
H25 105 over the past 10 to 15 years have had to restrict their activities 
H25 106 to housing development. <quote_>"They've done important work adding 
H25 107 to the stock of low-income housing,"<quote/> said Martinez. 
H25 108 <quote_>"But it's a narrower vision of community 
H25 109 development."<quote/><p/>
H25 110 <p_>At least in part because the mature CDCs remain the most 
H25 111 complete expression of the philosophy of community development, 
H25 112 Monsignor William Linder of Newark's New Community said he believed 
H25 113 that it was in everybody's interests that they continue to grow.<p/>
H25 114 <p_>Describing them as one of the most important sources of 
H25 115 expertise in the debate on poverty issues, from teenage motherhood 
H25 116 to homelessness, he observed that the mature CDCs <quote_>"can tie 
H25 117 policy to the real world of people in a way that few other 
H25 118 organizations can."<quote/><p/>
H25 119 <p_>Speaking around a table where there were decidedly more people 
H25 120 with gray hair than not, he added, <quote_>"There's no way for a 
H25 121 movement to progress if it doesn't have a sense of its own history. 
H25 122 We need a lot of the gray-haired people who have lived that history 
H25 123 to continue to play a role in the community development 
H25 124 movement."<quote/><p/>
H25 125 <p_>MACE's president, Larry Farmer, said that what he thought 
H25 126 distinguished the work of the groups attending the conference from 
H25 127 more recent efforts in poor communities was that many of the newer 
H25 128 ones seemed <quote_>"more committed to helping people live better 
H25 129 <tf|>in poverty rather than helping them get <tf|>out of 
H25 130 poverty."<quote/><p/>
H25 131 <p_>He also said that community groups <quote_>"had to try to 
H25 132 empower from all directions. Not just through economic development, 
H25 133 but through the people becoming leaders"<quote/> - something that 
H25 134 MACE has stressed since its beginnings.<p/>
H25 135 <p_>Said SSUC's Martinez, <quote_>"Don't measure my success solely 
H25 136 on the dollars and cents at the bottom of my balance sheet. Measure 
H25 137 me also on the number of people who got their first real chance 
H25 138 while working in a CDC. Leadership is just like anything else - 
H25 139 it's learned. And it's learned on the job. I would never have been 
H25 140 an assistant secretary in Washington if it hadn't been for the 
H25 141 experience I got at the Unity Council."<quote/><p/>
H25 142 <p_>Most felt that their organizations had to become better at 
H25 143 formalizing leadership training. CPLC's Pete Garcia recalled that 
H25 144 when he first started to move beyond the world of South Phoenix's 
H25 145 barrio, he was <quote_>"still trying to figure out which one of 
H25 146 these <tf|>whoms and <tf|>forths and <tf|>wherefores you used 
H25 147 first. You don't just take someone who grew up in a housing 
H25 148 project, the way I did, and expect that he or she will be able to 
H25 149 make their way through the corridors of power without some formal 
H25 150 training. If you're going to make a leader, you're going to have to 
H25 151 provide training, travel, internships, and a variety of other 
H25 152 things."<quote/><p/>
H25 153 <p_>One step that Garcia's organization has taken is to forge close 
H25 154 ties with Hispanic students in the nearby universities. <quote_>"We 
H25 155 recruit interns through student associations,"<quote/> he said. 
H25 156 <quote_>"And even if we can't offer them jobs after they graduate, 
H25 157 we try to keep in contact with them."<quote/><p/>
H25 158 <p_>But many at the conference said that the crisis atmosphere 
H25 159 brought on by the withdrawal of federal support made leadership 
H25 160 development - in their organizations and in the larger community - 
H25 161 a luxury they couldn't afford.<p/>
H25 162 <p_><quote_>"We need real institutional support,"<quote/> said 
H25 163 Martinez, <quote_>"the kind of support that ballets, symphonies, 
H25 164 and museums, and national organizations like the American Red Cross 
H25 165 get. None of us are coming close to that kind of backing. We have a 
H25 166 harder job to do with fewer resources."<quote/><p/>
H25 167 <p_><quote_>"One of the problems,"<quote/> she added, <quote_>"is 
H25 168 that we're working with people who aren't terribly attractive to a 
H25 169 lot of funders. Many have been drug dealers, or they're ex-addicts 
H25 170 or welfare mothers. And they're black and Hispanic."<quote/><p/>
H25 171 <p_><quote_>There's a double standard,"<quote/> said NCC board 
H25 172 member Mary Smith. <quote_>"Funders will tell you, 'Oh, the work 
H25 173 you're doing is wonderful!' But then they'll tell you that they 
H25 174 don't give grants for that <tf|>kind of work. They'll give it to an 
H25 175 institution they perceive as safe, like a college or a 
H25 176 hospital."<quote/><p/>
H25 177 <p_>Monsignor Linder cited as an example a university not far from 
H25 178 Newark's New Community. By midway in a yearlong $100 million 
H25 179 fund-raising drive it had already reached its goal. <quote_>"New 
H25 180 Community touches a lot more people's lives than that 
H25 181 university,"<quote/> he said. <quote_>"We're providing services 
H25 182 that are every bit as important and a lot more challenging to 
H25 183 deliver. But somehow we're not perceived as playing anywhere near 
H25 184 as important a role."<quote/><p/>
H25 185 <p_>CPLC's Garcia thinks wider recognition of that role is 
H25 186 absolutely essential. <quote_>"With all the hard times we've 
H25 187 had,"<quote/> he said, <quote_>"we've come of age as a group. We're 
H25 188 an institution now. And the powers-that-be should start taking 
H25 189 notice."<quote/><p/>
H25 190 <p_><quote_>"We have track records,"<quote/> said WLCAC's Ted 
H25 191 Watkins. <quote_>"We've established our credibility. But government 
H25 192 and the private sector still haven't realized sufficiently that 
H25 193 what we're doing is in <tf|>their best interests, too."<quote/><p/>
H25 194 <p_>To overcome those perceptions, all agreed that they had to get 
H25 195 much better at telling their story.<p/>
H25 196 <p_><quote_>"When it comes to inner-city communities,"<quote/> said 
H25 197 Watkins, <quote_>"there's a lot more attention given to drive-by 
H25 198 shootings, crack dealers, and drug busts than to the work of CDCs. 
H25 199 But trying to get the attention of the media takes time - time that 
H25 200 none of us can afford right now."<quote/><p/>
H25 201 <p_>Just as important, said Garcia, was <quote_>"getting more 
H25 202 involved in the debate over public policy, so that instead of us 
H25 203 having to follow the money, the money starts to follow us."<quote/> 
H25 204 He added that this was also an area where an organization's 
H25 205 commitment to developing leaders in the community could be crucial. 
H25 206 <quote_>"If you've done that work,"<quote/> he said, <quote_>"then 
H25 207 a lot of the local political leaders may not only be your friends, 
H25 208 they may be part of your organization's family."<quote/> He cited 
H25 209 as an example a recently elected U.S. congressman from the Phoenix 
H25 210 area who was a longstanding member of CPLC's board. <quote_>"CPLC 
H25 211 identified the development of leadership as a primary objective 20 
H25 212 years ago,"<quote/> said Garcia. <quote_>"We've succeeded at the 
H25 213 local level, at the state level, and now, we're proud to say, at 
H25 214 the national level."<quote/><p/>
H25 215 <p_>According to Mary Smith of NCC, one way her organization has 
H25 216 dealt with this issue was by having a strong community action group 
H25 217 that worked hard to let elected officials know what they thought 
H25 218 was best for their community.<p/>
H25 219 <p_>She recalled an encounter she had 15 years earlier that brought 
H25 220 home the importance of organizing.
H25 221 
H26   1 <#FROWN:H26\><h_><p_>FROM THE DEPUTY CHAIRMAN<p/><h/>
H26   2 <p_><quote_>"To fulfill its educational mission, achieve an orderly 
H26   3 continuation of free society, and provide models of excellence to 
H26   4 the American people, the Federal Government must transmit the 
H26   5 achievement and values of civilization from the past via the 
H26   6 present to the future ..."<quote/><p/>
H26   7 <p_>National Foundation on the Arts and the Humanities Act of 1965, 
H26   8 as amended through November 5, 1990<p/>
H26   9 <p_>Civilization is a fragile thing. As the legislation that 
H26  10 authorizes the Endowment makes clear, history and literature and 
H26  11 philosophy do not by themselves speak to generations, present and 
H26  12 upcoming. There are necessary agents of transmission - teachers, 
H26  13 scholars, students, books, exhibitions, films - and there is 
H26  14 necessary support from American citizens. The National Endowment 
H26  15 for the Humanities, as an agency of the federal government, does 
H26  16 its part by translating American taxpayer monies into programs that 
H26  17 serve the present and the future.<p/>
H26  18 <p_>One universally acknowledged achievement of civilization is 
H26  19 being recognized through the NEH Initiative on the Emergence of 
H26  20 Democracy announced in 1992. It is a special invitation for 
H26  21 projects that study democracy in its beginnings 2500 years ago and 
H26  22 its subsequent emergence in different parts of the world. The 
H26  23 initiative is particularly timely in that American scholars are 
H26  24 just gaining access to archives held close in Eastern Europe and in 
H26  25 the former Soviet republics, but the emergence of democracy is of 
H26  26 enduring interest to a nation that seeks to provide for the future 
H26  27 orderly continuation of free society. The Endowment has supported 
H26  28 several initiatives over the years, mostly in response to 
H26  29 historically significant commemorations, such as the Bicentennial 
H26  30 of the Constitution, the Bill of Rights, and the Columbian 
H26  31 Quincentennary. Although for none of these initiatives were there 
H26  32 dedicated funds, they have served to enrich the pool of 
H26  33 applications and raise even higher the quality of NEH's many 
H26  34 awards.<p/>
H26  35 <p_>The merit of the thousands of applications is determined by a 
H26  36 process that encourages open debate and brings a multitude of 
H26  37 perspectives to bear. It is a procedure that respects intellectual 
H26  38 property and personal privacy while conducting public business. It 
H26  39 is a three-way tug-and-pull: first, an individual applicant's or 
H26  40 panelist's reasonable expectation of confidentiality; second, the 
H26  41 citizen's right, therefore the press's right, to know how federal 
H26  42 funds are being spent; and finally, a federal agency's 
H26  43 responsibility to carry out statutorily mandated programs as 
H26  44 effectively and fairly as possible.<p/>
H26  45 <p_>When NEH peer reviewers are asked for advice, they have the 
H26  46 reasonable expectation that their advice will be treated 
H26  47 confidentially. Likewise, when applicants submit proposals, they 
H26  48 have a reasonable expectation that the details of their proposals 
H26  49 will be held in confidence until the decision to fund or not to 
H26  50 fund is made. Once federal funds are obligated for a project, then 
H26  51 the description of that project is public information, for the 
H26  52 public has a right to know how federal funds are being spent.<p/>
H26  53 <p_>Meetings at NEH to discuss specific proposals are closed to the 
H26  54 public. When panelists and when National Council members meet in 
H26  55 Washington to discuss individual applications, they are reminded 
H26  56 that their discussions as well as the details within applications 
H26  57 are confidential. Not only does the Endowment reason that it has a 
H26  58 responsibility to protect the privacy of those people who do not 
H26  59 receive federal funds, but it also understands that it must 
H26  60 safeguard the ideas in the applications.<p/>
H26  61 <p_>Closed review, however, is more than an issue of the right to 
H26  62 privacy. It is an issue of fair and impartial evaluation. The 
H26  63 Endowment argues that it cannot carry out its statutorily mandated 
H26  64 programs without assuring that applications will be fairly and 
H26  65 judiciously considered. Since its inception NEH has depended on the 
H26  66 good will of knowledgeable people who have submitted assessments in 
H26  67 complete confidence. They have given honest opinions freely; they 
H26  68 have determined merit in an atmosphere of disinterested remove.<p/>
H26  69 <p_>Their work has resulted in a wide-ranging array of 
H26  70 Endowment-supported projects, from a film on Lyndon Baines Johnson 
H26  71 to a comprehensive dictionary of classical Latin. In the course of 
H26  72 its twenty-seven years, the Endowment has spent $2.65 billion 
H26  73 enabling 47,000 projects. In terms of the total federal budget, the 
H26  74 sums are small; in terms of total funding for humanities in the 
H26  75 United States, however, NEH annually provides more financial 
H26  76 support than the 846 largest private foundations do 
H26  77 collectively.<p/>
H26  78 <p_>One way in which the Endowment has made its funds go farther 
H26  79 than they would under ordinary circumstances is through alliances 
H26  80 with other federal agencies and with major private funders. 
H26  81 Currently an interagency agreement has enabled NEH to participate 
H26  82 with the National Science Foundation and the Fund for the 
H26  83 Improvement of Postsecondary Education in the Department of 
H26  84 Education. The three agencies are pooling resources to encourage 
H26  85 programs that improve the quality of undergraduate curricula. 
H26  86 Another agreement with the National Science Foundation and the 
H26  87 Library of Congress will support public lecture-discussion programs 
H26  88 in science and the humanities. A large gift from the DeWitt 
H26  89 Wallace-Reader's Digest Fund has given sabbatical opportunities to 
H26  90 almost 200 outstanding elementary and secondary teachers over the 
H26  91 four years the program has been in place.<p/>
H26  92 <p_>NEH is able to play as an equal partner with much larger 
H26  93 enterprises for several reasons, but none as important as its 
H26  94 reputation over the years for being a well-run agency with a highly 
H26  95 competent professional staff. On the administrative side of the 
H26  96 agency, for example, in the auditing office and grants office, are 
H26  97 knowledgeable, collegial professionals who serve as stewards of 
H26  98 taxpayer funds. And on the program side of the agency are 
H26  99 dedicated, intelligent officials who daily encourage and inform 
H26 100 potential applicants, and who, most importantly, assure fair and 
H26 101 impartial review.<p/>
H26 102 <p_>It is the widely acknowledged integrity of its merit review 
H26 103 process that has given the Endowment the reputation of being 
H26 104 <tf_>primus inter pares<tf/> in the community of grant-making 
H26 105 agencies. It is through these means - merit review, a superlative 
H26 106 staff, initiatives that emphasize the contribution of humanities to 
H26 107 the national interest - that the National Endowment for the 
H26 108 Humanities strives to enable projects that transmit the 
H26 109 accomplishments and values of civilization.<p/>
H26 110 
H26 111 <h_><p_>HOW THE ENDOWMENT WORKS<p/><h/>
H26 112 <p_>In order <quote_>"to develop and promote a broadly conceived 
H26 113 national policy of support for the humanities,"<quote/> the 
H26 114 National Endowment for the Humanities was established by Congress 
H26 115 in 1965 as an independent grant-making agency of the federal 
H26 116 government. The Endowment supports scholarly research, education, 
H26 117 and public programs in the humanities. Under the act that 
H26 118 established the Endowment, the term <tf|>humanities includes, but 
H26 119 is not limited to, the study of the following disciplines: history; 
H26 120 philosophy; languages; linguistics; literature; archaeology; 
H26 121 jurisprudence; the history, theory, and criticism of the arts; 
H26 122 ethics; comparative religion; and those aspects of the social 
H26 123 sciences that employ historical or philosophical approaches.<p/>
H26 124 <h|>Programs.
H26 125 <p_>This report lists federal funds obligated for grants made in 
H26 126 fiscal year 1992 through the Endowment's six divisions - Education 
H26 127 Programs, Fellowships and Seminars, Preservation and Access, Public 
H26 128 Programs, Research Programs, and State Programs - and one office - 
H26 129 the Office of Challenge Grants. Grant listings are preceded by a 
H26 130 brief introduction describing the nature and purposes of the 
H26 131 programs administered by each division. The grants themselves are 
H26 132 listed in alphabetical order under each grant-making program. 
H26 133 Except for the Travel to Collections program, grants for less than 
H26 134 $1,000 are not listed.<p/>
H26 135 <h_><p_>Public Information.<p/><h/>
H26 136 <p_>Information about Endowment programs and activities can be 
H26 137 found in a variety of publications produced by the Office of 
H26 138 Publications and Public Affairs. The Endowment's bimonthly magazine 
H26 139 <tf|>Humanities features articles by nationally known scholars and 
H26 140 writers on current humanities topics, a listing of recent grants by 
H26 141 discipline, a calendar of grant application deadlines, a guide 
H26 142 section for those who are thinking of applying for an NEH grant, 
H26 143 and essays about noteworthy NEH supported projects.<p/>
H26 144 <h_><p_>Matching Funds.<p/><h/>
H26 145 <p_>To stimulate private support for the humanities, the Endowment 
H26 146 uses federal funds to match funds donated from private sources. To 
H26 147 date, NEH matching grants have helped generate almost 123 billion 
H26 148 in gift funds - more than $953 million of which has been generated 
H26 149 through the Challenge Grants program. Matching under the Challenge 
H26 150 Grants program is required in a ratio of three to one for 
H26 151 first-time awards or four to one for second-time awards. Matching 
H26 152 under other programs is on a one-for-one basis.<p/>
H26 153 <p_>In addition to federal matching funds, the Endowment stimulates 
H26 154 private-sector support of specific projects by requiring grantees 
H26 155 in most programs to commit their own funds for a portion of the 
H26 156 costs of a project. In many cases, this amounts to 50 percent of 
H26 157 total project costs.<p/>
H26 158 <h|>Grants.
H26 159 <p_>Except in the case of challenge grants and most grants made by 
H26 160 the Division of State Programs, awards made by NEH are for specific 
H26 161 projects in the humanities. To apply, an individual or organization 
H26 162 submits a proposal for a project to one of the Endowment's funding 
H26 163 categories. A final decision can normally be expected about six 
H26 164 months after the application deadline.<p/>
H26 165 <p_>Each application is assessed by knowledgeable persons outside 
H26 166 the Endowment who are asked for their judgments about the quality 
H26 167 of the proposed project. About 1,200 scholars and professionals in 
H26 168 the humanities serve on approximately 250 panels throughout the 
H26 169 course of a year. The judgment of panelists is often supplemented 
H26 170 by individual reviews solicited from specialists who have extensive 
H26 171 knowledge of the specific subject area dealt with in the 
H26 172 application.<p/>
H26 173 <p_>The advice of the panels and outside reviewers is assembled by 
H26 174 the staff of the Endowment, who may comment on matters of fact or 
H26 175 on significant issues that would otherwise be missing from the 
H26 176 evaluation. These materials are then presented to the National 
H26 177 Council on the Humanities, a board of twenty-six citizens nominated 
H26 178 by the President of the United States and confirmed by the Senate. 
H26 179 The National Council meets four times each year to advise the 
H26 180 Chairman of the Endowment. The Chairman, who is appointed for a 
H26 181 four year term by the President with the consent of the Senate, 
H26 182 takes into account the advice provided by this review process and, 
H26 183 by law, makes the final decision about funding.<p/>
H26 184 <p_>In fiscal year 1992, more than 9,100 applications were 
H26 185 reviewed, of which about 1,900 were approved.<p/>
H26 186 
H26 187 <h_><p_>DIVISION OF EDUCATION PROGRAMS<p/><h/>
H26 188 <p_>In 1992 the Division of Education Programs began to award 
H26 189 grants for undergraduate curricula that illuminate connections 
H26 190 among the various disciplines of science and the humanities. This 
H26 191 interagency effort, in cooperation with the National Science 
H26 192 Foundation and the Department of Education's Fund for the 
H26 193 Improvement of Postsecondary Education, will continue into 1993 and 
H26 194 1994. By means of one such grant, Southwest Texas State University 
H26 195 of San Marcos, Texas, will call on faculty from a wide range of 
H26 196 fields whose common interest is the study of the Southwest through 
H26 197 the perspectives of history, culture, and the natural sciences to 
H26 198 develop courses for a new Southwestern studies minor. Another grant 
H26 199 will enable Skidmore College to plan a series of multidisciplinary 
H26 200 capstone courses which will enrich general education courses. The 
H26 201 Division's Higher Education in the Humanities program emphasizes 
H26 202 not only general education and core curricula but also deepening 
H26 203 the humanities education of future teachers. At Southwest Texas 
H26 204 State University a seminar of thirteen humanities faculty members 
H26 205 and four secondary school teachers will refine foundation courses 
H26 206 for a new program leading to a graduate certificate in the 
H26 207 humanities for secondary school teachers. The courses are to focus 
H26 208 on 'The Quest for Order and Happiness: The Individual, the State, 
H26 209 and the Ethical Life'; readings will range from Seneca's 'Letter 
H26 210 from a Stoic' through Diderot's <tf_>Rameau's Nephew<tf/> to 
H26 211 Morrison's <tf|>Beloved. To strengthen curricula for undergraduates 
H26 212 preparing to become history and social studies teachers, the 
H26 213 American Political Science Association will offer a summer 
H26 214 institute on constitutional history, principles, and law for 
H26 215 campus-based teams of humanities and education faculty members.<p/>
H26 216 <p_>Both of the division's comprehensive programs support 
H26 217 residential summer institutes for intensive study of significant 
H26 218 topics and texts in the humanities. 'The Nature of Meaning,' 
H26 219 sponsored by Rutgers University under a grant from the Higher 
H26 220 Education program, will focus on the fundamental question, now 
H26 221 widely disputed in the humanities, of whether meaning is verifiable 
H26 222 among individuals. Intended for faculty members in literary theory, 
H26 223 anthropology, linguistics, psychology, and cognitive studies, as 
H26 224 well as those who teach philosophy, the institute will feature many 
H26 225 leading contributors to the current debate.
H26 226 
H27   1 <#FROWN:H27\><h_><p_>Hershey<p/>
H27   2 <p_>A Report on the Company's Environmental Policies and 
H27   3 Practices<p/>
H27   4 <p_>The Council on Economic Priorities Corporate Environmental Data 
H27   5 Clearinghouse<p/>
H27   6 <p_>December 1992<p/>
H27   7 <p_>HERSHEY FOODS CORPORATION<p/>
H27   8 <p_>I. EXECUTIVE SUMMARY<p/><h/>
H27   9 <p_>This report documents the company's environmental impact. Among 
H27  10 the key aspects are the following:<p/>
H27  11 <h_><p_>PERFORMANCE VS. INDUSTRY<p/><h/>
H27  12 <p_>CEP looks at six indicators to provide comparative 
H27  13 industry-wide analysis. Taken together, these indicators by no 
H27  14 means reflect the sum total of a company's environmental 
H27  15 performance. CEP compares Hershey to its competitors in the Food 
H27  16 Industry.<p/>
H27  17 <p_><O_>figure<O/><p/>
H27  18 <p_><*_>bullet<*/>Hershey reported the release of just over 90,000 
H27  19 pounds of toxic chemicals in 1989, up from 78,000 pounds in 1988. 
H27  20 In terms of aggregate releases, the company's reported release of 
H27  21 toxic chemicals was better than average among other companies in 
H27  22 the food industry.<p/>
H27  23 <p_><*_>bullet<*/>When adjusted for sales, Hershey's toxic releases 
H27  24 were better than average for the food industry in 1988 and 1989. 
H27  25 Hershey Soup reported the release of 0.04 pounds of toxic chemicals 
H27  26 for every $1,000 in sales in 1989 and 0.03 in 1988.<p/>
H27  27 <p_><*_>bullet<*/>Hershey Foods paid nearly $12,000 in OSHA 
H27  28 violations during the past five years for 56 violations. This 
H27  29 dollar amount was lower than nearly all its major competitors.<p/>
H27  30 <p_><*_>bullet<*/>The environmental soundness of Hershey's PAC 
H27  31 contributions was only about average in general, but much better 
H27  32 than that of its competitors. Hershey scored 50 out of 100 on CEP's 
H27  33 Greendex.<p/>
H27  34 <p_><*_>bullet<*/>As of July 1991, the U.S. Environmental 
H27  35 Protection Agency had not identified Hershey Foods as a 
H27  36 'potentially responsible party' (PRP) at any Superfund site. This 
H27  37 tied them with 4 other companies in the food industry.<p/>
H27  38 <p_><*_>bullet<*/>Hershey had 4 facility-quarters out of compliance 
H27  39 with air permits in 1991. (A facility-quarter is a facility that is 
H27  40 out of compliance with its air permit during one calendar quarter.) 
H27  41 This was about average for the food industry.<p/>
H27  42 <h_><p_>ENVIRONMENTAL IMPACT<p/><h/>
H27  43 <p_><*_>bullet<*/>Though Hershey has not set goals to reduce the 
H27  44 use or emission of carbon dioxide and methane, they have done so 
H27  45 for nitrogen oxide and CFCs. Hershey states that its sulfur dioxide 
H27  46 emissions have been reduced significantly, through an energy policy 
H27  47 which uses cleaner burning natural gas as its primary fuel. And in 
H27  48 Hershey's new chocolate facility the company has installed new 
H27  49 technology in the boilers that reduces nitrogen oxide emissions.<p/>
H27  50 <p_><*_>bullet<*/>In terms of solid waste management, the company 
H27  51 participates in waste exchanges when possible and reprocess<&|>sic! 
H27  52 waste for sale as usable product. The company's edible products are 
H27  53 reprocessed into animal feed and other wastes are reprocessed for 
H27  54 use as mushroom and garden mulch.<p/>
H27  55 <p_><*_>bullet<*/>The company now has a policy that whenever 
H27  56 possible it purchases office paper with recycled content and it 
H27  57 replaces photocopiers with new ones which can use recycled paper. 
H27  58 Many of its photocopiers and laser printers also use refurbished 
H27  59 cartridges.<p/>
H27  60 <p_><*_>bullet<*/>Hershey's new chocolate facility is attempting to 
H27  61 conserve water in the manufacturing process by using water 
H27  62 recovered from the evaporation of milk in various non-food contact 
H27  63 operations. The company estimated that this program will save 
H27  64 approximately 100,000 gallons of water per day.<p/>
H27  65 <h_><p_>REGULATORY, LEGAL AND POLITICAL ISSUES<p/><h/>
H27  66 <p_><*_>bullet<*/>Though the company did not state its position on 
H27  67 the proposed GATT Resolution (H.Con.Res. 246), they did state that 
H27  68 they support <quote|>"harmonization" of food safety standards and 
H27  69 have a company representative in the U.S. delegation to the Codex 
H27  70 Alimentarius Commission.<p/>
H27  71 <h_><p_>PRODUCTS AND TECHNOLOGIES<p/><h/>
H27  72 <p_><*_>bullet<*/>Hershey does plans to conduct biotechnology 
H27  73 research on plants, but would not identify the projects and items 
H27  74 under consideration, stating this was confidential information.<p/>
H27  75 <h_><p_>DISCLOSURE AND POLICY<p/><h/>
H27  76 <p_><*_>bullet<*/>Hershey responded to CEP's environmental 
H27  77 questionnaire. The company also provided comments on a draft copy 
H27  78 of CEDC's environmental profile.<p/>
H27  79 <p_><*_>bullet<*/>Hershey does not support the labelling of foods 
H27  80 for pesticides, waxes or shellacs, bioengineered genes, or 
H27  81 irradiation, because the company believes <quote_>"that foods 
H27  82 complying with US safety standards do not require warnings on 
H27  83 labels."<quote/><p/>
H27  84 <h_><p_>II. COMPANY OVERVIEW<p/><h/>
H27  85 <p_>Hershey Foods Corporation produces a broad line of chocolate 
H27  86 confectionery, pasta and other food products. At the end of 1991, 
H27  87 the company employed 14,000 people full-time and 1,300 people 
H27  88 part-time and Richard A. Zimmerman is the Chairman and CEO.<p/>
H27  89 <p_>In 1991, Hershey had nearly $3 billion in sales revenues, a 7% 
H27  90 increase from 1990. Net income rose 2% in 1991 to $220 million. 
H27  91 According to <tf|>Fortune, it was the 160th largest company in the 
H27  92 United States, and the 17th largest in the food industry in terms 
H27  93 of 1991 revenues.<p/>
H27  94 <h_><p_>III. STRUCTURE AND POLICY<p/>
H27  95 <p_>INDUSTRIES AND SUBSIDIARIES<p/><h/>
H27  96 <p_>Hershey Foods Corporation manufactures, distributes and sells 
H27  97 consumer food products, which include various chocolates, 
H27  98 confectionery, pasta and other food products. The corporation 
H27  99 includes the following: Hershey Chocolate U.S.A.; Hershey Canada 
H27 100 Inc.; Hershey Refrigerated Products; Hershey International and 
H27 101 Hershey Pasta Group.<p/>
H27 102 <h_><p_>Hershey Chocolate U.S.A.<p/><h/>
H27 103 <p_>This division of Hershey Foods, along with Hershey Canada Inc., 
H27 104 manufactures and sells chocolate and confectionery products under 
H27 105 approximately fifty-five brand names. Hershey Chocolate U.S.A's 
H27 106 main brand names are Hershey's, Reese's, Y&S, Luden's and Peter 
H27 107 Paul.<p/>
H27 108 <h_><p_>Hershey Canada Inc.<p/><h/>
H27 109 <p_>In addition to Hershey, Reese and Y&S, the main brand names of 
H27 110 this division include Moirs, Lowney, Glosette, Life Savers, Oh 
H27 111 Henry! and Planters.<p/>
H27 112 <h_><p_>Hershey Refrigerated Products<p/><h/>
H27 113 <p_>This division of Hershey Foods manufactures and sells 
H27 114 refrigerated puddings in the U.S.<p/>
H27 115 <<h_>p_>Hershey International<p/><h/>
H27 116 <p_>In Germany and Mexico, the company manufactures chocolate and 
H27 117 confectionery products under the brand names Gubor and Hershey's 
H27 118 respectively. This division also exports products manufactured by 
H27 119 other divisions and is involved in various international joint 
H27 120 ventures.<p/>
H27 121 <h_><p_>Hershey Pasta Group<p/><h/>
H27 122 <p_>Hershey Pasta Group manufactures and sells pasta under eight 
H27 123 brand names, which include San Giorgio, Skinner, Delmonico, P&R, 
H27 124 Light 'N Fluffy, American Beauty, Perfection and Ronzoni.<p/>
H27 125 <h_><p_>Importation of Foods<p/><h/>
H27 126 <p_>The company imports ingredients directly as well as through 
H27 127 brokers. Currently, Hershey receives cocoa beans from seven 
H27 128 countries.<p/>
H27 129 <p_>Hershey explained that they do not grow cocoa beans themselves, 
H27 130 but import them from West African, South American and Far Eastern 
H27 131 equatorial regions.<p/>
H27 132 <h_><p_>FACILITIES AND TERRITORIES<p/>
H27 133 <p_>Domestic and Canada<p/><h/>
H27 134 <p_>Hershey Chocolate U.S.A. operates 10 manufacturing facilities, 
H27 135 six of these are plants of Hershey Pasta Group and the rest are two 
H27 136 Confectionery Products plants in Hershey, Pennsylvania, one 
H27 137 Confectionery Products plant in Oakdale, California and one in 
H27 138 Stuarts Draft, Virginia. Hershey Canada Inc. operates manufacturing 
H27 139 facilities in Smith Falls and Hamilton, Ontario; Dartmouth, Nova 
H27 140 Scotia; and Montreal, Quebec. They also have a Confectionery 
H27 141 Products plant in Smith Falls, Ontario. In addition to the plants 
H27 142 listed above, Hershey owns properties for manufacturing pasta 
H27 143 products.<p/>
H27 144 <h_><p_>CONTACT PEOPLE<p/><h/>
H27 145 <p_>Dr. Catherine St. Hilaire<p/>
H27 146 <p_>Director<p/>
H27 147 <p_>Regular Affairs<p/>
H27 148 <p_>(717)-534-5060<p/>
H27 149 <p_>John C. Long<p/>
H27 150 <p_>Director of Consumer and Public Relations<p/>
H27 151 <p_>(717)-534-7641<p/>
H27 152 <h_><p_>ENVIRONMENTAL POLICY<p/>
H27 153 <p_>Company's environmental policy<p/><h/>
H27 154 <p_>Hershey established an environmental taskforce in 1990 with the 
H27 155 purpose of updating the company's Environmental Compliance Policy. 
H27 156 The company's 'environmental philosophy' reads as follows: 
H27 157 <quote_>"We believe that Hershey Foods Corporation has an 
H27 158 obligation to protect and preserve the environment for ouselves, 
H27 159 our children and for future generations. We will continue to 
H27 160 conduct our business activities in a manner which does not 
H27 161 adversely affect the environment and which protects the health and 
H27 162 safety of our employees, our consumers and the communities in which 
H27 163 we operate."<quote/><p/>
H27 164 <p_>Hershey's environmental compliance program is based on the 
H27 165 following: The company stated that they keep management informed of 
H27 166 all issues and circumstances relating to compliance; that its 
H27 167 facilities are provided with individuals who have technical 
H27 168 expertise in resolving environmental problems; that independent 
H27 169 environmental assessments are made by the company; and that any 
H27 170 permitting of non-compliance will result in disciplinary acton.<p/>
H27 171 <h_><p_>Agriculture policy<p/><h/>
H27 172 <p_>When importing ingredients, Hershey stated that they test all 
H27 173 lots of cocoa beans to ensure they comply with U.S. regulations on 
H27 174 pesticides.<p/>
H27 175 <p_>Hershey's formal environmental policy does not deal 
H27 176 specifically with integrated pest management (IPM), organic 
H27 177 certification, or soil conservation. However, the company does 
H27 178 endorse and encourage IPM and soil conservation in its supplier 
H27 179 documents and position on pesticide use.<p/>
H27 180 <p_>The company does not support the labelling of foods for 
H27 181 pesticides, waxes or shellacs, bioengineered genes, or irradiation 
H27 182 because the company believes <quote_>"that foods complying with US 
H27 183 safety standards do not require warnings on labels."<quote/><p/>
H27 184 <h_><p_>Food irradiation<p/><h/>
H27 185 <p_>Hershey Foods' policy on food irradiation seems to have 
H27 186 fluctuated in the past few years. In 1990, it was reported that 
H27 187 Hershey supports food irradiation in policy and the <tf_>Better 
H27 188 World Investment Guide<tf/> in 1991, stated that up until the late 
H27 189 1980s Hershey belonged to the Coalition for Food Irradiation, a 
H27 190 pro-food irradiation lobby. In November of 1991 the Interfaith 
H27 191 Center on Corporate Responsibility (ICCR) had a dialogue with the 
H27 192 company regarding its policy on food irradiation. At the time, 
H27 193 Hershey was targeted as a company that possibly supports food 
H27 194 irradiation and ICCR initiated a shareholder resolution against the 
H27 195 company. Though ICCR was not able to follow up on the issue, 
H27 196 Hershey stated to CEP that <quote_>"With respect to food 
H27 197 irradiation, it is not currently used by our corporation or any of 
H27 198 our operating divisions. Neither do we currently purchase or use 
H27 199 irradiated foods or ingredients or sell foods that have been 
H27 200 exposed to radiation."<quote/> However, Laurie Williams, 
H27 201 educational coordinator for Food and Water, an anti-food 
H27 202 irradiation group, stated that as of now Hershey has not submitted 
H27 203 a statement to them on food irradiation.<p/>
H27 204 <h_><p_>IV. ENVIRONMENTAL IMPACT<p/>
H27 205 <p_>RELEASES<p/><h/>
H27 206 <p_>While releases of methyl bromide (bromomethane), a potent 
H27 207 carcinogen, decreased slightly from 1988 to 1989, Hershey's total 
H27 208 reported toxic releases increased substantially. This was mostly 
H27 209 <}_><-|>do<+|>due<}/> to the release of over 27,000 pounds of 
H27 210 phosphoric acid into the sewer system at its Oakdale, CA 
H27 211 facility.<p/>
H27 212 <p_><O_>caption&table<O/><p/>
H27 213 <p_><O_>caption&figure<O/><p/>
H27 214 <h_><p_>Toxic Releases Reduction<p/><h/>
H27 215 <p_>Hershey does not participate in the EPA's Industrial Toxics 
H27 216 Project (33/50 program). The initiative aims to reduce by one-third 
H27 217 by 1992 and by one-half by 1995 the release of 17 target chemicals 
H27 218 from 600 industrial companies. Hershey stated that of the 17 
H27 219 chemicals targeted by the EPA, they use only <quote_>"small amounts 
H27 220 in laboratory-related methods."<quote/> The company then explained 
H27 221 that when appropriate, they are looking to eliminate the use of 
H27 222 these chemicals through alternative methods.<p/>
H27 223 <p_>Though Hershey has not set goals to reduce the use or emission 
H27 224 of carbon dioxide and methane, they have done so for nitrogen 
H27 225 oxides and CFCs, though the targets were not divulged to CEP. 
H27 226 Hershey also stated that its sulfur dioxide (SO<sb_>2<sb/>) 
H27 227 emissions have been reduced significantly. The company explained 
H27 228 that this was achieved through its energy policy, which uses clean 
H27 229 burning natural gas as its primary fuel. They further explained, 
H27 230 that in Hershey's new chocolate facility the company has installed 
H27 231 new technology in the boilers that reduces nitrogen oxide 
H27 232 emissions.<p/>
H27 233 <p_>In 1988, Hershey's plant in Hershey, Pennsylvania emitted 
H27 234 40,591 pounds of methyl bromide. According to the Toxic Chemical 
H27 235 Release Inventory of the 1986 Emergency Planning and Community 
H27 236 Right to Know Act, this chemical is one of many which is considered 
H27 237 as <quote_>"acutely toxic, possible carcinogenic, or capable of 
H27 238 having a significant adverse effect on the environment."<quote/><p/>
H27 239 <h_><p_>WASTE MANAGEMENT<p/>
H27 240 <p_>Company Policy<p/><h/>
H27 241 <p_>Hershey stated that their company does have a program for 
H27 242 reducing wastes generated in manufacturing and it is implemented in 
H27 243 the following ways: reducing or eliminating the use of 
H27 244 hazardous/toxic materials by switching to non-hazardous/non-toxic 
H27 245 materials; reusing or recycling materials; production 
H27 246 design/engineering changes; recycling of non-spec or substandard 
H27 247 product and establishing office paper recycling.<p/>
H27 248 <h_><p_>Hazardous Waste Management<p/><h/>
H27 249 <p_>In their 1991 Environmental Brochure, Hershey stated that they 
H27 250 do not handle many materials that are hazardous or toxic, but that 
H27 251 some amount of chemicals are used in their laboratories and 
H27 252 manufacturing plants. For disposal of these materials, Hershey 
H27 253 stated that they are moved by licensed transporters who deliver it 
H27 254 to waste treatment or disposal facilities. They also stated that 
H27 255 they are committed to minimizing the use of hazardous and toxic 
H27 256 materials.<p/>
H27 257 <p_>Hershey stated that their company does produce chemical, 
H27 258 nuclear, and biological wastes from laboratory work which require 
H27 259 special disposal procedures.<p/>
H27 260 <p_>Hershey stated the amount of hazardous waste (as defined under 
H27 261 the Resource Conservation and Recovery Act or RCRA - see APPENDIX 
H27 262 J) they produced for each year between 1987 and 1991 was less than 
H27 263 20,000 pounds. Hershey did no onsite recycling, incinerating, 
H27 264 treating or landfilling of the hazardous waste produced last year. 
H27 265 In terms of offsite efforts, however, the company did recycle 95% 
H27 266 of the hazardous waste generated and incinerated 5%.<p/>
H27 267 <h_><p_>Solid Waste Management<p/><h/>
H27 268 <p_>In their 1991 Environmental Brochure, Hershey stated that they 
H27 269 <quote|>"agree" with the following waste reduction and disposal 
H27 270 techniques (in order of preference) adopted by the EPA: source 
H27 271 reduction; recycling (including composting of yard waste); 
H27 272 waste-to-energy conversion; and landfilling.<p/>
H27 273 
H28   1 <#FROWN:H28\><h_><p_>Faculty Research Leave (Sabbatical 
H28   2 Leave)<p/><h/>
H28   3 <p_>APPLICATION DEADLINE: None<p/>
H28   4 <p_>Faculty members spend their sabbatical leave, typically 9-12 
H28   5 months, at the Laboratory. Over 120 appointments have been made 
H28   6 since the program's inception in 1980.<p/>
H28   7 <p_>The Faculty Research Leave Program is intended to provide 
H28   8 mutual benefits to the faculty members and the Laboratory. In 
H28   9 addition to bringing about fruitful research activity, it should 
H28  10 give Argonne scientists and engineers and visiting faculty 
H28  11 opportunities to develop a strengthened rapport and deepened 
H28  12 appreciation of mutual needs and interests pertaining to research 
H28  13 development and to catalyze the formation of continuing research 
H28  14 partnerships and collaborations.<p/>
H28  15 <p_>Interactions of faculty with students in the research programs 
H28  16 is strongly encouraged. This can take the form of research 
H28  17 collaboration as well as more conventional interactions such as 
H28  18 seminars and teaching. Also, when funding is available, faculty can 
H28  19 involve qualified student(s) from their home campus in their 
H28  20 Argonne research program.<p/>
H28  21 <p_>Appointments will normally be for an academic or a calendar 
H28  22 year, extendable, if mutually agreed upon by the faculty member, 
H28  23 the home institution and Argonne. To be eligible for the 
H28  24 appointment, a faculty member must be in receipt of a 
H28  25 sabbatical-leave award (or other appropriate award) from his/her 
H28  26 university, have the approval of the appropriate university 
H28  27 administrator to accept the Argonne appointment, and have 
H28  28 demonstrated accomplishment in an area of research and/or 
H28  29 development relevant to research at Argonne.<p/>
H28  30 <p_>During his/her Faculty Research Leave appointment, the faculty 
H28  31 member will remain on the payroll and under the fringe benefits of 
H28  32 the university. Typically, Argonne will reimburse the university 
H28  33 for 50% of salary and fringe benefits for the academic-year (9 
H28  34 months) and full salary and fringe benefits for the summer period 
H28  35 (3 months). In addition, the Laboratory may, by direct payment to 
H28  36 the faculty member, negotiate reimbursement for certain travel, 
H28  37 moving, and housing expenses.<p/>
H28  38 <p_>Argonne desires that the expression of interest in Faculty 
H28  39 Research Leave participation by an individual faculty member, along 
H28  40 with university endorsement of such participation, be transmitted 
H28  41 to the Faculty Program Leader, Argonne Division of Educational 
H28  42 Programs. Initial expressions of interest should include a 
H28  43 curriculum vitae, a publication list, and a brief statement of the 
H28  44 research interests of the faculty member. There should also be an 
H28  45 indication by the responsible university official that the faculty 
H28  46 member is eligible to receive a sabbatical or other appropriate 
H28  47 award.<p/>
H28  48 <h_><p_>GRADUATE STUDENT PROGRAMS<p/>
H28  49 <p_>Laboratory-Graduate Participantship Appointments<p/><h/>
H28  50 <p_>Laboratory-Graduate Participantship (Lab-Grad) appointments are 
H28  51 available for qualified graduate students at U.S. universities who 
H28  52 wish to carry out their thesis research at Argonne National 
H28  53 Laboratory under the co-sponsorship of an Argonne staff member and 
H28  54 a faculty member. The university sets the academic standards and 
H28  55 awards the degree. In practice, the participation by the faculty 
H28  56 member varies from full partnership in the research to general 
H28  57 supervision. The Argonne staff sponsor undertakes to keep the 
H28  58 faculty sponsor informed about the student's progress and he/she 
H28  59 attends the thesis defense.<p/>
H28  60 <p_>Research may be conducted in the basic physical and life 
H28  61 sciences, mathematics, computer science, and engineering as well as 
H28  62 in a variety of applied areas relating to conservation, 
H28  63 environment, fission and fusion energy, and other energy 
H28  64 technologies.<p/>
H28  65 <p_>Lab-Grad appointments are for a one-year term with annual 
H28  66 renewals being contingent upon satisfactory performance by the 
H28  67 appointee. Appointments usually commence when the student begins 
H28  68 full-time thesis research at Argonne after having completed all 
H28  69 other academic requirements. In certain cases students may be 
H28  70 awarded support for pre-thesis studies on campus, provided that 
H28  71 they intend to carry out their thesis research at Argonne.<p/>
H28  72 <p_>Support of a Lab-Grad appointee consists of a stipend, tuition 
H28  73 payment up to $3,500 per year, and certain travel expenses. In 
H28  74 addition, the student's faculty sponsor may receive payment for 
H28  75 limited travel expenses.<p/>
H28  76 <p_>An application for a Lab-Grad appointment may be submitted at 
H28  77 any time during the year and an appointment may commence at any 
H28  78 time. A completed application should be submitted at least one 
H28  79 month prior to any proposed starting date but earlier application 
H28  80 submission is advantageous because the availability of Lab-Grad 
H28  81 appointments is limited by funding constraints.<p/>
H28  82 <p_>Mutual interest in an area of research by the student and the 
H28  83 Argonne staff sponsor is essential for the successful arrangement 
H28  84 of a Lab-Grad appointment. To help the parties gauge their mutual 
H28  85 interest, a limited number of temporary appointments are available 
H28  86 for qualified graduate students so that they may work with an 
H28  87 Argonne staff member and become familiar with his/her research 
H28  88 program. These temporary appointments have a tenure of three months 
H28  89 and support consists of a per diem payment to help defray the cost 
H28  90 of living away from home, plus travel expenses.<p/>
H28  91 <h_><p_>Thesis-Parts Appointments<p/><h/>
H28  92 <p_>Thesis-Parts Appointments support qualified graduate students 
H28  93 who wish to visit Argonne for periods from a few days to a few 
H28  94 months, so that they may utilize special Laboratory facilities or 
H28  95 capabilities during the course of their thesis research. Support 
H28  96 consists of a per diem amount to help defray the cost of living 
H28  97 away from home, plus transportation. Application is best made 
H28  98 through an Argonne staff person or research Division appropriate to 
H28  99 the proposed activity.<p/>
H28 100 <h_><p_>Guest Graduate Appointments<p/><h/>
H28 101 <p_>Guest Graduate Appointments are available for qualified 
H28 102 graduate students who show that access to Argonne National 
H28 103 Laboratory will be beneficial to their thesis research and to 
H28 104 Argonne programs. A Guest Graduate is given a gate pass, usually 
H28 105 for one year, and the student may visit Argonne whenever 
H28 106 appropriate. A Guest Graduate receives no stipend or payment of any 
H28 107 kind from the Laboratory.<p/>
H28 108 <p_>For application materials and further information about any of 
H28 109 these graduate student programs, or for assistance in identifying 
H28 110 an appropriate Argonne staff member, write or call:<p/>
H28 111 <p_>Graduate Student Program Office<p/>
H28 112 <p_>Division of Educational Programs<p/>
H28 113 <p_>Argonne National Laboratory<p/>
H28 114 <p_>Argonne, Illinois 60439-4845<p/>
H28 115 <p_>(708) 972-3371<p/>
H28 116 <h_><p_>UNDERGRADUATE PROGRAMS<p/><h/>
H28 117 <p_>The student research programs at Argonne are educational 
H28 118 experiences designed to provide participants with the opportunity 
H28 119 to study and carry out research at the frontiers of their fields of 
H28 120 interest. Participation in the program takes the form of an 
H28 121 individual collaboration with an Argonne staff member in some part 
H28 122 of an ongoing project of interest to the student participant.<p/>
H28 123 <p_>Three programs exist at Argonne in which college/university 
H28 124 students may obtain research experience. These are the Summer 
H28 125 Research Participation (SRP) Program, the Science and Engineering 
H28 126 Research Semester (SERS), and the Graduate Student Thesis Research 
H28 127 Program. While specific details for SRP and SERS are given below, a 
H28 128 student will generally spend the first week of his/her Argonne 
H28 129 experience with an Argonne staff member devising a research 
H28 130 strategy. For the next few weeks the supervisor will provide 
H28 131 considerable program assistance and guidance. Subsequently, the 
H28 132 student will be expected to perform relatively independently and 
H28 133 complete the project on his/her own initiative. Each student is 
H28 134 required to submit a mid-term progress report and a final research 
H28 135 report.<p/>
H28 136 <p_>To be eligible for SRP or SERS, a student must:<p/>
H28 137 <p_><*_>star<*/> have a grade point average of at least 3.0 on a 
H28 138 4.0 scale, and<p/>
H28 139 <p_><*_>star<*/> be a U.S. citizen or permanent resident alien.<p/>
H28 140 <p_>Selection for any program is based upon a student's academic 
H28 141 record, statement of interests, and his/her faculty member 
H28 142 recommendations.<p/>
H28 143 <h_><p_>Summer Research Participation Program<p/><h/>
H28 144 <p_>APPLICATION DEADLINE: February 3, 1992<p/>
H28 145 <h_><p_>The Program:<p/><h/>
H28 146 <p_>The Summer Research Participation Program extends for an 
H28 147 eleven-week period which begins in early June and runs through 
H28 148 mid-August. In addition to their research activities, participants 
H28 149 are expected to attend a series of seminars and tours dealing with 
H28 150 current topics in science and engineering.<p/>
H28 151 <p_>Normally, participants in the summer program must have 
H28 152 completed their sophomore year and not more than their first year 
H28 153 of graduate study. While students must generally have matriculated 
H28 154 status, science or engineering graduates who have been out of 
H28 155 college for no more than one year will also be considered for the 
H28 156 program.<p/>
H28 157 <h_><p_>Financial Assistance:<p/><h/>
H28 158 <p_>During the appointment period, participants receive a stipend 
H28 159 of $200/week and complimentary housing or a housing allowance. All 
H28 160 housing arrangements for single students are handled by Argonne's 
H28 161 Division of Educational Programs. Transportation expenses are 
H28 162 reimbursed for one round<?_>-<?/>trip between the Laboratory and 
H28 163 the participant's home or university for round-trip distances 
H28 164 greater than 100 miles. If travel is via personal auto, 
H28 165 reimbursement is at a rate of 25.5 cents per mile, with the total 
H28 166 not to exceed coach-class airfare.<p/>
H28 167 <h_><p_>Application Procedure:<p/><h/>
H28 168 <p_>An application packet can be obtained by writing or calling:<p/>
H28 169 <p_>Student Research Programs<p/>
H28 170 <p_>Division of Educational Programs<p/>
H28 171 <p_>Argonne National Laboratory<p/>
H28 172 <p_>Argonne, Illinois 60439-4845<p/>
H28 173 <p_>(708) 972-4579<p/>
H28 174 <p_>Once completed, the application form should be returned to the 
H28 175 above address. The Student Evaluation Forms found in the 
H28 176 application packet should be given to faculty members with whom the 
H28 177 applicant has had frequent contact. The faculty member should mail 
H28 178 the evaluation form directly to the Division of Educational 
H28 179 Programs. These forms must be returned to complete your application 
H28 180 file.<p/>
H28 181 <h_><p_>Science and Engineering Research Semester<p/><h/>
H28 182 <p_>APPLICATION DEADLINES: 1992 Fall Program - March 15, 1992<p/>
H28 183 <p_>1993 Spring Program - October 20, 1992<p/>
H28 184 <h_><p_>The Program:<p/><h/>
H28 185 <p_>As part of a recent, nationwide Department of Energy 
H28 186 initiative, the Science and Engineering Research Semester offers 
H28 187 challenging opportunities for students selected nationally for 
H28 188 participation in energy-related research during the academic year. 
H28 189 The program enhances the historic collaboration between the 
H28 190 university community and the national laboratories and strengthens 
H28 191 the quality of science, mathematics, and engineering research and 
H28 192 education.<p/>
H28 193 <p_>The core of the academic-year SERS Program is the student 
H28 194 research experience. As such, the student is expected to devote at 
H28 195 least 35 hours per week to research on a specific project under the 
H28 196 mentorship of an Argonne staff scientist. In addition to a mid-term 
H28 197 and final report, each student will also be required to present a 
H28 198 brief seminar at Argonne on his/her research project.<p/>
H28 199 <p_>In addition to the research experience, courses which should 
H28 200 accommodate the needs and interests of a majority of the student 
H28 201 participants will be available. Information on the specific courses 
H28 202 to be offered during a particular term can be obtained by writing 
H28 203 to the Division of Educational Programs or by calling the Argonne 
H28 204 SERS coordinator at (708) 972-4579.<p/>
H28 205 <p_>Should a student require a special course not offered as part 
H28 206 of the regular program, he/she will be allowed to substitute a 
H28 207 course offered by a regional university. In this case, arrangements 
H28 208 MUST be made by the student well in advance of his/her stay at 
H28 209 Argonne. Students whose special needs are not covered by any of the 
H28 210 above options may arrange with their home campus faculty for 
H28 211 independent study to be conducted at Argonne under the supervision 
H28 212 of one of the Argonne staff.<p/>
H28 213 <p_>In addition to the above activities, Argonne has integrated 
H28 214 into its program a number of special features and activities. 
H28 215 During the Fall term, SERS participants have the opportunity to 
H28 216 attend the Argonne Graduate School Fair in Science and Engineering. 
H28 217 At this Fair, students have the chance to talk, one-on-one, with 
H28 218 faculty representatives from some of the finest graduate schools in 
H28 219 the U.S. On October 5, 1991, we will have over 135 departments 
H28 220 represented, including: Princeton, Yale, The University of Chicago, 
H28 221 Georgia Tech, to name a few. In the Spring, a number of the 
H28 222 program's students are selected for an expense-paid trip to make a 
H28 223 presentation on their Argonne research at the annual undergraduate 
H28 224 conference sponsored by the National Council on Undergraduate 
H28 225 Research. Last year, 18 Argonne students attended the Conference 
H28 226 held at the California Institute of Technology. In addition to the 
H28 227 above special activities, many cultural and scientific resources 
H28 228 exist in the greater Chicago area. Trips to the Aquarium, 
H28 229 Planetarium, Fermi National Accelerator Laboratory, Art Institute 
H28 230 of Chicago, Museum of Science and Industry, etc., are also 
H28 231 available.<p/>
H28 232 <h_><p_>Academic Credit:<p/><h/>
H28 233 <p_>Students are encouraged to seek academic credit from their home 
H28 234 institutions for their SERS experience. Recommended credit is 12-16 
H28 235 semester hours or the equivalent; Interdisciplinary Seminar, 1 
H28 236 credit; Advanced Course, 3 credits; Research, 8-12 credits. The 
H28 237 exact number of credits a student receives must be determined by 
H28 238 the student in consultation with the student's departmental 
H28 239 chairperson or advisor. DEP is willing to provide whatever 
H28 240 assistance it can in helping a student arrange for academic 
H28 241 credit.<p/>
H28 242 <h_><p_>Periods of Appointment:<p/><h/>
H28 243 <p_>Appointments are usually for either the Fall or Spring 
H28 244 Semester. For those students on other types of academic schedules 
H28 245 (quarter, tri-mester, etc.), adjustments of the beginning and 
H28 246 ending dates are usually possible.
H28 247 
H28 248 
H29   1 <#FROWN:H29\> <h_><p_>P&G in Saudi Arabia:<p/>
H29   2 <p_>Tapping a Wealth of Talents<p/><h/>
H29   3 <p_>BACK IN JANUARY 1991, THINGS looked pretty bleak to Ali Abdo. A 
H29   4 welder at P&G's MIC-Dammam detergent plant in Saudi Arabia, he and 
H29   5 his family had fled to Yemen, their home country. Yemen's support 
H29   6 of Iraq during the Persian Gulf crisis prompted an exodus of 
H29   7 Yemenis from Saudi-Arabia.<p/>
H29   8 <p_>Beyond providing air tickets for the family, there was little 
H29   9 anyone at MIC-Dammam could do for Abdo. In Yemen, he fretted about 
H29  10 his future. Would the Saudi government allow him to return? Would 
H29  11 he still have his job?<p/>
H29  12 <p_>With the Gulf War's end and after three months of waiting, Abdo 
H29  13 and his family were allowed to return to Saudi-Arabia. He was 
H29  14 elated to find his old job waiting for him at the Dammam plant.<p/>
H29  15 <p_>Today, reflecting on events, Abdo is clear on one point: 
H29  16 MIC-Dammam stood by him. <quote_>"I've heard a lot about the 
H29  17 Company's principles,"<quote/> he says, <quote_>"but the war put 
H29  18 them to the test ... and they worked."<quote/><p/>
H29  19 <p_>The Company's Saudi Arabian joint venture companies are P&G to 
H29  20 the core, especially concerning principles and employees. Dealing 
H29  21 with everything from war to labor shortages, the joint ventures 
H29  22 reach across many borders to attract the best people for building a 
H29  23 fast-growing, profitable business. Saudi Arabian market shares for 
H29  24 diapers, detergents and shampoos are the highest in the world. [See 
H29  25 sidebar on the next page.]<p/>
H29  26 <p_>P&G's three Saudi joint ventures - Modern Products 
H29  27 Company-Jeddah, Modern Industries Company-Dammam, Modern Industries 
H29  28 Company-Jeddah- employ about 1,000 people from 31 nations.<p/>
H29  29 <p_>This wide diversity is a necessity, since competition for the 
H29  30 best-educated and trained Saudis is sharp. <quote_>"Until the oil 
H29  31 boom of the early '70s, the number of Saudi college graduates was 
H29  32 very small,"<quote/> says Anand Prasad. A citizen of India, Prasad 
H29  33 is personnel manager for P&G's Saudi businesses.<p/>
H29  34 <p_>The kingdom moved quickly to establish universities and trade 
H29  35 schools, but for now, the number of college and technical school 
H29  36 graduates is well below the country's needs. Since the potential 
H29  37 recruits are also attracted to government-sponsored corporations 
H29  38 such as state oil companies, luring graduates to a consumer 
H29  39 products company is a further challenge.<p/>
H29  40 <h_><p_>STAFFING CHALLENGES<p/><h/>
H29  41 <p_>The joint ventures' personnel goal is for Saudi nationals to 
H29  42 make up at least half the workforce within a few years. Progress is 
H29  43 steady: three years ago, only 15 percent of P&G's Saudi Arabian 
H29  44 workforce were Saudi nationals; today, nearly 27 percent of 
H29  45 employees are.<p/>
H29  46 <p_>As the joint ventures' corporate recruiting manager, Haitham 
H29  47 Alhudhaif creates ways to increase awareness of P&G and its global 
H29  48 business on Saudi campuses. To capture the interest of the 
H29  49 brightest students, the joint ventures hold marketing seminars at 
H29  50 Saudi Arabia's two primary universities, King Fahd University and 
H29  51 King Abdul Aziz University.<p/>
H29  52 <p_> Students are responding. Wlid Hajj, a brand assistant on Head 
H29  53 & Shoulders, was a marketing major at King Fahd University in 
H29  54 Dhahran when he attended a marketing seminar sponsored by the joint 
H29  55 ventures. Impressed, he chose MIC-Jeddah because <quote_>"it has a 
H29  56 quality of work I couldn't get anywhere else."<quote/><p/>
H29  57 <p_>Amr Kandil, Pampers line manager, is a three-year veteran of 
H29  58 MPC-Jeddah. A Saudi and a graduate of Riyadh University, he joined 
H29  59 MPC because <quote_>"it's an opportunity to learn and work with a 
H29  60 worldwide company."<quote/><p/>
H29  61 <p_>He sees himself as part of Saudi Arabia's drive to diversify 
H29  62 its economy from total reliance on oil. <quote_>"We [Saudis] need 
H29  63 exposure to other working methods,"<quote/> he says, <quote_>"and 
H29  64 P&G is building a strong organization here."<quote/><p/>
H29  65 <p_>While more Saudis are joining the business, the labor and skill 
H29  66 shortage means that reliance on expatriate managers and technicians 
H29  67 will continue for the near future. After Saudis, the largest 
H29  68 nationality groups are from Egypt, Yemen, Sudan, Jordan, India and 
H29  69 Pakistan.<p/>
H29  70 <h_><p_>ONLY THE BEST<p/><h/>
H29  71 <p_><quote_>"We recruit only the best,"<quote/> explains Personnel 
H29  72 Manager Prasad, <quote_>"to get the best mix of strengths and 
H29  73 creative skills from different societies and nations."<quote/><p/>
H29  74 <p_>On a language and cultural level, close co<?_>-<?/>operation 
H29  75 between the dozens of nationalities is relatively easy. The 
H29  76 majority of employees come from Arab countries, speak the same 
H29  77 language (Arabic) and follow the same faith (Islam).<p/>
H29  78 <p_>Employees work and live in a nation in which Islam serves as 
H29  79 religious <tp|>and civil law: Employment is limited to males. Each 
H29  80 work site has a prayer room facing Mecca. During the holy month of 
H29  81 Ramadan, work shifts are shortened to six hours to accommodate the 
H29  82 fasting required of Moslems.<p/>
H29  83 <p_>Cultural and religious similarities are helpful, but hiring the 
H29  84 best and creating an environment focused on business results are 
H29  85 even more important. Consider the MPC-Jeddah plant, which produces 
H29  86 Pampers, Luvs and Always. In 1991 it won Product Supply's Process 
H29  87 Reliability Award for having the highest reliability rate of any 
H29  88 P&G paper plant in the world. Backed with a combination of great 
H29  89 quality at low cost, Pampers captured a commanding share of the 
H29  90 Arabian Peninsula diaper market.<p/>
H29  91 <p_>The foundation of success like this is meticulous attention to 
H29  92 hiring the right people. The Company is <quote_>"very 
H29  93 selective"<quote/>, agrees Abdel Moneim Bashir, a Sudanese who 
H29  94 works in Paper Product Development. <quote_>"The Company wants 
H29  95 wide-minded people."<quote/><p/>
H29  96 <p_>To enable people to focus on <quote_>"doing the best work 
H29  97 possible,"<quote/> says Obied Khojah <quote_>"there's one system, 
H29  98 balanced and fair"<quote/> for everyone. It's common for other 
H29  99 companies to have one pay scale for Saudis and another for foreign 
H29 100 workers. Not so with P&G's joint ventures, according to Khojah, a 
H29 101 Saudi and MIC-Jeddah plant personnel manager. Saudis and non-Saudis 
H29 102 alike have the same opportunities for advancement.<p/>
H29 103 <h_><p_><quote_>"LIKE ONE HAND"<quote/><p/><h/>
H29 104 <p_>Dedicated by King Faisal in 1965, the MIC-Jeddah plant is 
H29 105 famous throughout Saudi Arabia as the Tide plant. Once the sole 
H29 106 structure on this stretch of the Mecca road, Jeddah's booming 
H29 107 growth has engulfed the plant site and placed it in the midst of a 
H29 108 busy neighborhood.<p/>
H29 109 <p_>Abdul-Mugni Qasim, a supervisor in the plant's Raw Materials 
H29 110 section, describes a 'rare' bond of trust between MIC and its 
H29 111 workers. He knows, for example, that many companies in the Middle 
H29 112 East depend upon contracted labor and <quote_>"are quick to fire a 
H29 113 person for someone cheaper."<quote/><p/>
H29 114 <p_>This is unheard of at the Jeddah plant. Qasim himself is a 
H29 115 expatriate, a citizen of Yemen whose family has lived in Jeddah for 
H29 116 nearly three decades. He has worked for MIC-Jeddah for most of his 
H29 117 work life and now supervises a team of eight that includes six 
H29 118 nationalities. Nearly 30 years ago, he was part of the construction 
H29 119 crew that built the plant.<p/>
H29 120 <p_>Differences in nationality are of no consequence to him. On the 
H29 121 contrary, he sees his group as an extended family. <quote_>"If 
H29 122 someone's wife has a baby, or a relative dies, I live it with 
H29 123 them."<quote/><p/>
H29 124 <p_>Abdul-Qadir Basher, a Pampers line technician from Sudan, has a 
H29 125 succinct metaphor to describe how MPC-Jeddah's 18 nationalities 
H29 126 cooperate: <quote_>"We work like one hand,"<quote/> with the 
H29 127 <quote_>"goal of getting fine products with good 
H29 128 quality."<quote/><p/>
H29 129 <p_>Lest one get the impression of a workplace utopia, frictions 
H29 130 due to nationality occasionally arise. <quote_>"There <tf|> are 
H29 131 differences"<quote/> of cultural styles among Arabs, says Adnan 
H29 132 Ossailan, a Saudi who works in Quality Control at MPC-Jeddah, which 
H29 133 can sometimes lead to resentments. The goal is to address problems 
H29 134 before they grow, explains Mohammad Al-Ghamdi, plant personnel 
H29 135 manager.<p/>
H29 136 <h_><p_>MAXIMUM EFFORT<p/><h/>
H29 137 <p_>With Iraq's invasion of Kuwait in August 1990, the MIC-Dammam 
H29 138 plant's personnel challenges took on a whole new dimension. 
H29 139 <quote_>"People were worried,"<quote/> recalls Fahad Abdul-Karim, 
H29 140 personnel manager for the detergent plant. <quote_>"No one knew 
H29 141 what would happen."<quote/> Kuwait is only a few hours away by car. 
H29 142 Helicopters and jets from a nearby Saudi airbase filled the skies. 
H29 143 Tanks and military trucks clogged the streets.<p/>
H29 144 <p_>In January, with war imminent, the decision was made to 
H29 145 evacuate employees and their families to Jeddah and Mecca. Buses 
H29 146 were impossible to find, making caravans of private cars necessary. 
H29 147 Fuel, maps, tools and first-aid kits were gathered for the nearly 
H29 148 1,600-kilometer drive across the desert.<p/>
H29 149 <p_>One hundred apartments awaited the evacuees in the west. After 
H29 150 settling in, <quote_>"we got people working"<quote/> in the Jeddah 
H29 151 plants and headquarters, says Abdul-Karim. A group of 40 employees, 
H29 152 mostly Saudis with roots in the Dhahran region, volunteered to 
H29 153 continue working at the plant.<p/>
H29 154 <p_>Among them was Abdullah Abu-Saed, a mechanic. Dammam is his 
H29 155 family's home, and <quote_>"I felt it was my duty to stay behind in 
H29 156 order not to shut down the plant."<quote/> He and his colleagues 
H29 157 kept a security watch to handle damage in case the plant was hit by 
H29 158 one of the Scud missiles that passed over nightly. By the last 
H29 159 stages of the brief war, the group managed to begin limited 
H29 160 production at the plant.<p/>
H29 161 <p_><quote_>"As Saudis,"<quote/> says Abu-Saed, <quote_>"we served 
H29 162 our country too, because this is a Saudi company."<quote/><p/>
H29 163 <p_>By April, Saudi Arabia's Eastern Provinces were back to a 
H29 164 semblance of normality, and the Dammam-MIC employees evacuated to 
H29 165 Jeddah returned to work. No time was lost in reestablishing 
H29 166 shipments to newly liberated Kuwait. Truckloads of Ariel and Tide 
H29 167 headed for Kuwait as soon as the roads were reopened. Because of 
H29 168 this quick action, P&G brand shares in Kuwait are today higher than 
H29 169 pre-war levels.<p/>
H29 170 <p_>As the chaos and uncertainty created by the war dissipated, 
H29 171 MIC-Dammam could evaluate its evacuation as a job well done. 
H29 172 <quote_>"We were one of the few - if not the only - companies that 
H29 173 really took care of its people"<quote/> in providing transportation 
H29 174 and living facilities, says Marwan Haddad, Synthetic Detergents 
H29 175 Operations manager.<p/>
H29 176 <p_>If there's any question about P&G principles providing a 
H29 177 competitive edge in Saudi Arabia, Bader Al-Din Hossain, a Customer 
H29 178 Services coordinator at MIC-Dammam, has an answer. <quote_>"The 
H29 179 Company has proven it values us very much. Now I want to give the 
H29 180 maximum."<quote/><p/>
H29 181 
H29 182 <h_><p_>Mastery In Action<p/><h/>
H29 183 <p_><quote_>"Given the current competitive environment, unless we 
H29 184 continually upgrade our skills and competencies, we'll become 
H29 185 obsolete both as individuals and as a Company,"<quote/> says Keith 
H29 186 Lawrence, Industrial Relations Division, who is working on the 
H29 187 long-term worldwide vision of work systems in Product Supply. There 
H29 188 has been a growing concern among management for the past several 
H29 189 years that Procter & Gamble is not building the organization as 
H29 190 deep as it could, and is losing some of its technical mastery.<p/>
H29 191 <p_>Technical mastery is profound knowledge and skill used to 
H29 192 improve business results. It is a continual improvement process 
H29 193 necessary to remain competitive.<p/>
H29 194 <p_>The gradual eroding of these technical skills is a result of 
H29 195 several factors which tended to encourage the development of 
H29 196 generalists at P&G, more than specialists. But the trend is 
H29 197 changing.<p/>
H29 198 <p_>At the November annual meetings, Chairman and Chief Executive 
H29 199 Ed Artzt outlined six key strategies for P&G's future growth. One 
H29 200 is organizational development, or said another way, building the 
H29 201 capacity of people to keep pace with rapid business growth.<p/>
H29 202 <p_>There are many examples of building, developing and recognizing 
H29 203 organizational capability, from Advertising to R&D to Finance and 
H29 204 beyond. All have a common purpose - to help build individuals' 
H29 205 technical mastery and, in turn, to support the key corporate 
H29 206 strategy of building the organization.<p/>
H29 207 <h_><p_>PRODUCT SUPPLY<p/><h/>
H29 208 <p_>Product Supply is one of the leaders in developing and 
H29 209 recognizing technical mastery. In fact, the function even 
H29 210 celebrates technical excellence with the coveted Worldwide 
H29 211 Technology Achievement Awards.<p/>
H29 212 <p_>Gary Simpson, Product Supply manager-Laundry & Cleaning 
H29 213 Products, sees technical mastery as more than just expert 
H29 214 individual knowledge. It also includes systems mastery.<p/>
H29 215 <p_><quote_>"Think of it as creating a gourmet meal,"<quote/> says 
H29 216 Simpson. <quote_>"It takes an expert chef to first create a new 
H29 217 entree. But he or she can only make one at a time. Now, if the chef 
H29 218 writes down the recipe, thus creating a system to follow, others 
H29 219 can then be taught to be technical masters of that entree. The 
H29 220 result is many more entrees being made from one expert's 
H29 221 knowledge."<quote/><p/>
H29 222 <p_>This expert/master thinking applies directly to Product 
H29 223 Supply's strategies. <quote_>"By creating technical masters, we're 
H29 224 enhancing the total organization's ability to execute key strategic 
H29 225 work,"<quote/> says Simpson. Strategy development involves picking 
H29 226 the critical few things which will make a significant difference in 
H29 227 building the business. Technical mastery allows us to do those 
H29 228 right things right - or execute all strategies with excellence. In 
H29 229 Product Supply, this includes everything from sourcing raw 
H29 230 materials, to how the plants are run, to improving delivery of 
H29 231 'perfect orders,' to getting quickly to market with the new 
H29 232 consumer benefits.<p/>
H29 233 
H30   1 <#FROWN:H30\><h_><p_>ADMISSION CRITERIA<p/><h/>
H30   2 <p_>Jacksonville University seeks students with potential to 
H30   3 contribute to and benefit from the institution's programs. 
H30   4 Admission decisions are based on:<p/>
H30   5 <p_>1. The secondary school academic record, including course 
H30   6 selection, honors or AP classes, grade point average, and class 
H30   7 rank (where available).<p/>
H30   8 <p_>2. SAT or ACT test results.<p/>
H30   9 <p_>3. Extracurricular involvement, leadership record, and evidence 
H30  10 of special talents or abilities.<p/>
H30  11 <p_>4. The applicant's writing sample or essay.<p/>
H30  12 <p_>5. Interviews, when possible.<p/>
H30  13 <p_>To be considered for admission, students must satisfactorily 
H30  14 complete, or be in the process of completing, a satisfactory 
H30  15 college preparatory program. Recommended minimum preparation should 
H30  16 include 18 academic units, including:<p/>
H30  17 <p_>1. 4 units of English<p/>
H30  18 <p_>2. 3 units of Mathematics<p/>
H30  19 <p_>3. 2 units of Natural Sciences<p/>
H30  20 <p_>4. 2 units of Foreign Languages<p/>
H30  21 <p_>5. 2 units of Social Sciences<p/>
H30  22 <p_>A minimum GPA of 2.5 and class rank in the top half of the 
H30  23 graduating class is recommended.<p/>
H30  24 <h_><p_>PROVISIONAL ADMISSION<p/><h/>
H30  25 <p_>Students whose records do not meet the criteria for admission 
H30  26 but who show potential to be successful in college, e.g., low SAT 
H30  27 scores but a good high school record, or vice versa, may be 
H30  28 admitted to a summer session on a provisional basis. Decisions on 
H30  29 students admitted on a provisional basis may be made by the 
H30  30 University Admissions Committee. These students will enroll in the 
H30  31 appropriate English course, as determined by a placement 
H30  32 examination, and other three-credit course and a one-credit course 
H30  33 or a four-credit course, for a total of seven (7) credits. A grade 
H30  34 of 'C' or better must be earned in each course for the student to 
H30  35 continue beyond the summer session. Students who meet the 
H30  36 requirements of the provisional admission will be admitted to 
H30  37 Jacksonville University as degree candidates. A limit of 30 
H30  38 students annually is placed on the number of students to be 
H30  39 enrolled provisionally.<p/>
H30  40 <h_><p_>ADMISSION NOTIFICATION<p/><h/>
H30  41 <p_>REGULAR DECISION PLAN. Consideration of the application will 
H30  42 follow receipt of all materials, and applicants will be notified on 
H30  43 a rolling bases as soon as possible after January 1 of the current 
H30  44 academic year of the decision of the Admissions Office.<p/>
H30  45 <p_>EARLY DECISION PLAN. Students who declare Jacksonville 
H30  46 University their first choice college by November 15 and have all 
H30  47 credentials to Jacksonville University by December 1 will be 
H30  48 notified of University action on applications by December 25. 
H30  49 Replies from accepted applicants and deposits will be due by 
H30  50 January 15. The Early Decision Plan of Jacksonville University is 
H30  51 intended to serve those students with exceptional high school 
H30  52 records, rank in class, grade point average, SAT or ACT scores, and 
H30  53 special potential to contribute to and benefit from Jacksonville 
H30  54 University.<p/>
H30  55 <h_><p_>EARLY ADMISSION<p/><h/>
H30  56 <p_>A gifted student of unusual maturity whose high school record 
H30  57 shows excellent academic performance through the junior year in a 
H30  58 college preparatory program, and whose scores on a standardized 
H30  59 aptitude test are high may submit his application for admission to 
H30  60 the University for enrollment after the junior year in high school. 
H30  61 The candidate should have the support of his or her parents in 
H30  62 writing submitted with the application. A strong recommendation 
H30  63 from the high school is expected, and the candidate must come to 
H30  64 the campus for a personal interview with the Director of 
H30  65 Admissions.<p/>
H30  66 <h_><p_>DUAL ENROLLMENT<p/><h/>
H30  67 <p_>The dual enrollment program is designed primarily for high 
H30  68 school seniors who along with their guidance counselors feel that 
H30  69 their academic program would be enriched by college-level courses. 
H30  70 The normal freshman application for admission to Jacksonville 
H30  71 University is required with the indication that the student is 
H30  72 applying for dual enrollment. The following supporting data must be 
H30  73 submitted with the application:<p/>
H30  74 <p_>1. Scholastic Aptitude Test (SAT) of the College Board (PSAT 
H30  75 may be submitted) or the American College Test (ACT).<p/>
H30  76 <p_>2. High school transcript.<p/>
H30  77 <p_>3. Guidance Counselor's recommendation including a statement in 
H30  78 support of allowing the student to attend both high school and 
H30  79 college at the same time.<p/>
H30  80 <h_><p_>TRANSFERS APPLICATION PROCESS<p/><h/>
H30  81 <p_>Transfer applicants must submit:<p/>
H30  82 <p_>1. Completed application.<p/>
H30  83 <p_>2. $25.00 application fee (non-refundable).<p/>
H30  84 <p_>3. Official transcripts of colleges and universities attended, 
H30  85 sent by the Registrar of each institution.<p/>
H30  86 <p_>4. High school transcripts if transferring less than 15 
H30  87 semester hours of college credit.<p/>
H30  88 <p_>5. Statement from Dean of Students (or other appropriate 
H30  89 official) at the last college attended full time, attesting to the 
H30  90 candidates character and general fitness to continue university 
H30  91 work.<p/>
H30  92 <p_>6. Catalog of the institution from which the candidate 
H30  93 transfers, if requested.<p/>
H30  94 <p_>7. Medical information/immunization after admission (see 
H30  95 below).<p/>
H30  96 <p_>Art students must submit a portfolio.<p/>
H30  97 <p_>Music, Theatre Arts, and Dance students must audition.<p/>
H30  98 <h_><p_>TRANSFERS ADMISSION REQUIREMENTS<p/><h/>
H30  99 <p_>A student who wishes to transfer to Jacksonville University 
H30 100 must:<p/>
H30 101 <p_>1. Have completed a semester of academic work at an accredited 
H30 102 college or university at the time of entry, and not be concurrently 
H30 103 enrolled in high school.<p/>
H30 104 <p_>2. Be in good standing and eligible to continue or be 
H30 105 readmitted at the last institution attended, unless all work has 
H30 106 been completed or the student has graduated from that 
H30 107 institution.<p/>
H30 108 <p_>Jacksonville University encourages transfer applications from 
H30 109 students with cumulative grade point averages of 2.5 or higher but 
H30 110 will give full consideration to students with averages from 2.0 - 
H30 111 2.5.<p/>
H30 112 <p_>Jacksonville University honors academic suspensions of the last 
H30 113 institution, and credit will not be awarded for work taken during 
H30 114 the suspension period.<p/>
H30 115 <p_>It is the responsibility of the candidate to provide the 
H30 116 Director of Admissions at Jacksonville University with official 
H30 117 transcripts of work completed from all colleges attended. 
H30 118 Concealment of previous attendance at a college or university is 
H30 119 cause for cancellation of admission and registration.<p/>
H30 120 <h_><p_>TRANSFER OF CREDITS<p/><h/>
H30 121 <p_>Generally, occupational/vocational college level courses are 
H30 122 not accepted as transfer credit at Jacksonville University. 
H30 123 Academic courses completed at institutions which are approved by 
H30 124 the regional accrediting agency are acceptable in transfer provided 
H30 125 that they are comparable to courses offered at Jacksonville 
H30 126 University and were completed with a grade of 'C' or better. In 
H30 127 order for a course to be comparable, Jacksonville University must 
H30 128 either list the course in its current catalog or offer a 
H30 129 significant number of course offerings (minimally, four) within the 
H30 130 division having primary responsibility for that general area of 
H30 131 instruction. A limited number of college level courses which are 
H30 132 not comparable because JU does not offer a minimum of four courses 
H30 133 in the general area may still be transferred provided these courses 
H30 134 are not occupational/vocational and meet the other criteria for 
H30 135 acceptable transfer credit. A maximum of 12 semester hours is 
H30 136 allowable and these hours can be applied only as elective credit in 
H30 137 the student's academic program. Transfer credit for nursing courses 
H30 138 counted toward BSN major requirements must be approved by Nursing 
H30 139 faculty. Grades recorded as 'P' for Pass, 'CR' for Credit, etc., 
H30 140 will be transferred only if verification is provided by the 
H30 141 previous institution's Registrar that the work was completed with a 
H30 142 'C' or better grade. Students desiring transfer credit for courses 
H30 143 completed at another institution may be required to provide a copy 
H30 144 of the <tf|>Catalog from that institution so that an evaluation of 
H30 145 transfer credit may be made. Credit may also be granted for Federal 
H30 146 Aviation Administration Aviation Certificates if the holder is 
H30 147 enrolled in one of the Flight programs.<p/>
H30 148 <p_>Any work transferred to Jacksonville University will be entered 
H30 149 on the Jacksonville University transcript as hours earned only and 
H30 150 will not be used in computation of the grade-point average.<p/>
H30 151 <p_>A maximum of 64 semester hours of credit will be accepted from 
H30 152 junior colleges; junior college credit will not be accepted after a 
H30 153 student has accumulated 64 semester hour credits.<p/>
H30 154 <p_>The final 30 semester hours toward a bachelor's degree must be 
H30 155 completed at Jacksonville University.<p/>
H30 156 <p_>Limited or provisional credit also may be accepted from 
H30 157 specialized or special purpose institutions, including the United 
H30 158 States Armed Services, provided the work is applicable to our 
H30 159 baccalaureate degree programs and is recommended in appropriate 
H30 160 publications of the American Council on Education. For further 
H30 161 information see 'Credit for Military Service.'<p/>
H30 162 <h_><p_>INTERNATIONAL ADMISSION<p/><h/>
H30 163 <p_>International students must meet the same requirements as 
H30 164 freshmen or transfer candidates, as the case warrants, with the 
H30 165 following additions:<p/>
H30 166 <p_>1. Test of English as a Foreign Language (TOEFL): A minimum 
H30 167 score of 550 is required in all cases for further consideration.<p/>
H30 168 <p_>2. Documentation: Certified copies of academic records must be 
H30 169 accompanied by English translations where necessary.<p/>
H30 170 <p_>3. International Student Form and Financial Guarantee is 
H30 171 required.<p/>
H30 172 <p_>4. Submission of Application: Due to immigration regulations 
H30 173 and issuance of the student visa, the student's completed 
H30 174 application and all supporting papers must be submitted no later 
H30 175 than 60 days prior to registration.<p/>
H30 176 <p_><tf_>The Experiment in International Living (English as a 
H30 177 Second Language Program).<tf/> International Students of English 
H30 178 (ISE), a program conducted on the Jacksonville University campus by 
H30 179 the Experiment in International Living, is an English language and 
H30 180 orientation program designed to prepare students to study, work or 
H30 181 travel in the United States. Eight and four-week programs are 
H30 182 offered each calendar year, and students may enroll in successive 
H30 183 sessions until they reach the desired proficiency.<p/>
H30 184 <p_><tf_>English Language Examinations.<tf/> The ISE program uses 
H30 185 the Michigan English Language Placement Test at the beginning and 
H30 186 end of each course to measure progress. The test of English as a 
H30 187 Foreign Language (Institutional TOEFL) is also administered by the 
H30 188 Experiment at the end of each course. Persons who are interested in 
H30 189 applying for admission to the language program or who wish to take 
H30 190 the examination would contact the Director, ISE, Jacksonville 
H30 191 University.<p/>
H30 192 <h_><p_>MEDICAL INFORMATION/IMMUNIZATION<p/><h/>
H30 193 <p_>As a prerequisite to registration, Jacksonville University 
H30 194 requires that all new students born after 1956 present documented 
H30 195 proof of immunity of measles. A licensed physician or 
H30 196 representative of a medical clinic must sign the form provided by 
H30 197 the University.<p/>
H30 198 <p_>Students who will live in University operated residence halls 
H30 199 must also submit the STUDENT MEDICAL RECORD completed and signed by 
H30 200 a licensed physician.<p/>
H30 201 <h_><p_>TRANSIENT STUDENTS<p/><h/>
H30 202 <p_>A student who is a degree candidate at another institution and 
H30 203 who wishes to attend one term at Jacksonville University for 
H30 204 transfer credit should apply to the Director of Admissions. Such a 
H30 205 student may arrange with his/her Registrar to submit a letter of 
H30 206 good standing to Jacksonville University. This letter serves as a 
H30 207 substitute for the transcript required from other students. Such a 
H30 208 student is admitted as a transient student. A transient student who 
H30 209 decides to become a degree candidate at Jacksonville University 
H30 210 must reapply for admission and meet the requirements for a transfer 
H30 211 admission.<p/>
H30 212 <h_><p_>READMISSION<p/><h/>
H30 213 <p_>A former Jacksonville University student who was not enrolled 
H30 214 at this University during the most recent fall or spring semester 
H30 215 must apply for readmission through the Registrar's Office. 
H30 216 Applications for readmission must be submitted as early as 
H30 217 possible, but at least two months prior to registration for the 
H30 218 term in which the student wishes to enroll.<p/>
H30 219 <p_>The following policies apply to the readmission of 
H30 220 undergraduate degree candidates:<p/>
H30 221 <p_>1. If enrolled at another institution during the period since 
H30 222 last enrolled at this University, an official transcript of all 
H30 223 courses attempted must be submitted to the Registrar's Office.<p/>
H30 224 <p_>2. No undergraduate degree candidate who has attended another 
H30 225 institution since leaving this University will be readmitted unless 
H30 226 an official transcript from that institution is received in 
H30 227 sufficient time to permit evaluation prior to registration.<p/>
H30 228 <p_>Students who have a bachelor's or higher degree must have an 
H30 229 official transcript on file in the Registrar' Office which shows 
H30 230 the degree(s) earned. Such students need not submit transcripts of 
H30 231 subsequent course work taken elsewhere unless they are degree 
H30 232 candidates at this University. Degree candidates must have copies 
H30 233 of all transcripts on file.<p/>
H30 234 <p_>A student who terminates enrollment at Jacksonville University 
H30 235 while in a probationary or suspended status and who subsequently 
H30 236 completes course work at another institution prior to being 
H30 237 readmitted does so at the student's own risk. Such course work will 
H30 238 be used in determining whether or not to readmit the student. If 
H30 239 the decision is made to readmit the student, appropriate transfer 
H30 240 credits will be awarded at the time of readmission. In the case of 
H30 241 a suspended student, transfer credit will not be awarded for course 
H30 242 work completed during the period of suspension from Jacksonville 
H30 243 University.<p/>
H30 244 <h_><p_>ENROLLMENT DEPOSIT<p/><h/>
H30 245 <p_>Upon notification of acceptance, all new non-boarding students 
H30 246 are required to pay a $100 tuition deposit. This is a 
H30 247 non-refundable deposit.
H30 248 
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