Doug Bereuter

Mr. BEREUTER

Mr. BEREUTER. Mr. Chairman, I move to strike the last word. Mr. Chairman, I take this time in order to engage in a colloquy with the chairman of the subcommittee and potentially with the ranking minority member. Legislation was enacted in 1996 to amend the Safe Drinking Water Act and to inject more common sense into the process of testing and treating our Nation's drinking water. This Member is concerned, as a representative of the State that has the largest use of groundwater for its public water supplies by far in the Nation, with only 7 out of some 700 or 800 systems using any surface water. I am concerned that the Environmental Protection Agency's groundwater rule may be ignoring congressional intent. Specifically, the EPA may attempt to implement a rule which would result in enormous disinfection costs for small communities, but with no actual benefits to the citizens of those communities. In recognition of the general good quality of our Nation's groundwater, the excellent existing State water quality protection programs, and the expense and other complications of unneeded treatment, not to mention questions about whether or not some of the treatment agents themselves are threatening the health, the Safe Drinking Water Act of 1996 provided the EPA with only the authority to promulgate regulations requiring disinfection as a treatment technique, as necessary, and I stress the words ``as necessary,'' for all public water systems using groundwater. Therefore, this Member would request that the chairman of the Subcommittee on VA, HUD and Independent Agencies of the Committee on Appropriations enter into a colloquy on this matter. Mr. Chairman, is it the committee's intention that a small community using groundwater should not be subject to EPA-directed improvements unless the community's groundwater poses a genuine health risk?

Mr. BEREUTER. Mr. Chairman, this Member rises today in strong support of the Hinchey amendment and in opposition to the Veterans Equitable Resource Allocation (VERA) system. As you know, VERA provides the Department of Veterans Affairs medical care funding to regions across the country, and uses an allocation formula that ties funding for each of the 22 geographic regions to the number of veterans that they actually serve, based on per capita veterans usage of facilities. While this sounds like fair allocation system in theory, it has detrimental effects on VA medical care in many areas of the country, especially sparsely populated areas like Nebraska. From the time the Administration announced this new system, this Member has opposed VERA and have supported funding levels of the VA Health Administration above the amount the President recommended. This new formula has produced a 5 percent decrease in funding for this fiscal year for my state, which resulted in a $13.5 million decrease in funding distributed to my state of Nebraska. Already, we have been threatened by the closure of a major VA medical facility in my district. VERA has seriously impacted health care for veterans in the less populated states and generally ignored existing facilities such as the Lincoln VA Hospital. In fact, last February the Administration recommended that inpatient care at the Lincoln VA Hospital be terminated in the near future. While it is true that the number of veterans served at the Lincoln VA Hospital and other VA facilities in the state have decreased over the past years, as they have in most areas of the nation because we now deny most veterans in-patient care in our VA hospitals. Nevertheless, we still have an obligation to provide care to these people who served our country during our greatest times of need. There must be at least a basic level of acceptable national infrastructure of facilities, and medical personnel is needed to serve our veterans wherever they live. This Member finds the decrease in quality and accessibility of medical care for veterans who live in sparsely populated areas to be completely unacceptable. Everyone will agree that the VA must provide adequate facilities for veterans all across the country regardless of whether they live in sparsely populated areas with resultant low usage numbers for VA hospitals. This Member strongly supports the Hinchey amendment to prevent further implementation of the Veterans Equitable Resource Allocation system. American veterans living in all areas of the country deserve nothing less. This Member asks his colleagues to support the Hinchey Amendment.

Mr. BEREUTER. I wish that was the case, but my senior Senator gave up his position to go to the Senate Finance Committee.

Mr. BEREUTER. I thank the gentleman. I know that he is sincere in this, but perhaps the gentleman himself knows that the entire Nebraska delegation has met with Ms. Browner and people under her in the last several weeks.

Mr. BEREUTER. I yield to the gentleman from California.

Mr. BEREUTER. I yield to the gentleman from California.

Mr. BEREUTER. I thank the gentleman. Point of Order

Mr. BEREUTER. Reclaiming my time, if the gentleman persists in his point of order and I proceed with what I think is necessary, I assume the gentleman's commitment is still there to work with me.

Mr. BEREUTER. I yield to the gentleman from California.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, today this Member will introduce legislation that requires the administration to establish a $100 million assistance and food security initiative for Indonesia and Southeast Asia in fiscal year 1999. I would say it very much happens to compliment what the gentleman from Minnesota just said about coping with our own farm crisis or difficulties at the same time that we are reaching out to help for a food shortage problem which is expected to be severe this year in Indonesia. This legislation, in the works for several weeks by this Member, is consistent with recent urgent proposals or suggestions by distinguished Indonesian experts in America, like Ambassador Paul Wolfowitz of the Brookings Institution, and the former Ambassador, Robert Zoellick, President and CEO of the Center for Strategic and International Studies, for a prompt Congressional response to the Asian financial crisis, and, more specifically, to Indonesia's current plight. In an opinion piece published in the Washington Post on July 23, 1998, Mr. Zoellick, former Undersecretary of State during the Bush Administration, eloquently argues that now is a definitive moment in the lives of a generation of Asians, and that America's response to the current crisis could be as important as America's response to Europe 50 years ago. Because Ambassador Zoellick makes the case for a coherent foreign policy strategy better than anyone so far, I would say, this Member would include excerpts from his op-ed piece entitled ``An Asian Strategy.'' I would like to read two paragraphs from it at this point. He says as follows: First, Congress should enact a major humanitarian package for Indonesia. The need is urgent. The combination of drought and economic collapse has not only impoverished half of the world's fourth-most populous country, but raised the real danger of famine. Indonesia's new president already is urging his 200 million citizens to fast twice a week to conserve supplies. All the talk of IMF packages and economic recovery will be only chatter until there is political stability in Indonesia, and there will be no stability if people cannot eat. Indeed, Indonesia's ethnic peace, even its very coherence as a Nation is at risk. And if Indonesia sinks further, the rest of Southeast Asia will bear the burden of its dead weight.'' ``America has a proud tradition of humanitarian relief for people in need; it also has farmers who would welcome a boost in prices. If Congress expands the administration's recently announced grain purchases into a full-fledged relief plan, it can draw in Japan, the European Union and even some private U.S. business people who have signaled a willingness to contribute. This initiative would send a powerful, symbolic and practical message about America's concern for the plight of average Asians, not just bankers and magnates.'' That is what Mr. Zoellick has to say. Mr. Speaker, now is not the time, I would say, for the United States to balk at its responsibilities as the world's only superpower. The United States fought a Cold War and spent hundreds of billions of dollars, perhaps trillions of dollars, to advance our ideology of global capitalism and democracy. In Asia, capitalism was adopted with an enthusiasm that has proven so strong that authoritarian leaders found democracy following right behind. From Taiwan to the Republic of Korea and Indonesia, for example, our most important principles are being embraced and tested by people willing to put their lives on the line. As Mr. Zoellick rightly states, we have an important choice to make that will affect an entire Asian generation's perception of us and what we stand for. We can tell hard working Indonesians that they can sell their products here, or we can close our markets. We can join the rest the world in providing humanitarian assistance, or we can turn our back. We can send our experts to help them rebuild their economy, or we can wait until it is too late. We can pool resources and share risk with the world's industrialized countries to the regional capital markets or we can let them dry up. Mr. Speaker, the United States can pay now or it can pay later. If the U.S. Congress and the president agree to develop a proper response to the current crisis in Asia, the costs will be minimal and the rewards unfathomable. Can one put a price on democracy in Indonesia or stability in the Asia Pacific region? Or, we can wait and see how the troubled Asian economies do own their own without our assistance. Perhaps they will recuperate in several years through excellent management and astute decision making. But what if they do not? What will be the costs if we do nothing and find the region still in crisis in five years? How much will it cost us to maintain our security umbrella in an insecure region? What will happen to the U.S. economy if the Asian Pacific region slips into depression? Most importantly, will Asians continue to look to the United States for leadership if they do nothing? Mr. Speaker, I urge Members to cosponsor this new Indonesian assistance legislation, which will also be very important to our export base and to our entire economy and foreign policy.

Mr. BEREUTER

Mr. BEREUTER. Mr. Chairman, this Member rises in support of H.R. 4194 and would like to thank the distinguished gentleman from California and Chairman of the Appropriations Subcommittee on VA, HUD, and Independent Agencies [Mr. Jerry Lewis] and the distinguished gentleman from Ohio and Ranking Member of the Subcommittee [Mr. Louis Stokes] for their hard work on this bill. Once again, Appropriations Committee has completed the tough task of allocating limited resources for many deserving programs. As a Member of the House Banking Committee, the committee with jurisdiction over Federal housing programs, this Member is very interested in how funds are appropriated in this area. Although there are numerous deserving programs included in this funding bill, this Member would like to mention four specific items. First, this Member would like to commend the Appropriations Committee for increasing the Federal Housing Administration (FHA) mortgage limits under the Department of Housing and Urban Development (HUD). Prior to this appropriation bill, the floor limit for an FHA mortgage was 38 percent of the Federal Home Loan Mortgage Corporation Act also knows as Freddie Mac which was $86,317. H.R. 4194 raises the FHA limit to 48 percent of the Freddie Mac conforming home loan limit which is $109,032. This Member had an amendment drafted which he will not now offer which would have increased the FHA mortgage limit floor. This Member believes that due to increasing new home construction costs especially in rural areas, it has become very difficult to build a new home for $86,317. For this reason, this Member commends and supports the increase to $109,032. Second, this Member would also like to applaud the Appropriations Committee on adopting the Obey amendment to the FHA mortgage limits. This Member would like to thank the distinguished gentleman from Wisconsin [Mr. Obey] on successfully introducing an amendment which would redefine the word ``area'' for the purposes of the metropolitan statistical area. This amendment would in effect allow the median single family house price for an area to be equal to the median single family house price of the county within the area that has the highest such median price. This provision is a step in the right direction in consideration of new home construction costs and in its effect on FHA mortgage limits. Third, this bill provides $6.0 million, a $1 million increase from the FY 1998 budget, for the Section 184 Indian Housing Loan Guarantee Program which is administered by HUD. According to the Committee Report, this appropriation will be leveraged into at least $36.9 million in loan guarantees. The Section 184 Indian Housing Loan Guarantee program authored by this Member, has already proven to be an excellent program that now is providing privately financed homes through a guarantee program for Indian families who were otherwise unable to secure conventional financing because of the trust status of Indian reservation land. Fourth, appropriators should be applauded for including $4.7 billion for the Community Development Block Grant (CDBG). This Member would also like to commend enthusiastically the appropriators for decreasing the amount of set-asides within the CDBG from $479 million in FY 1998 to $167 million in FY 1999 for the use of some such funds were not devoted to the most appropriate areas. This Member has testified at the subcommittee level that the expenditure of the maximum amount of CDBG funds should be left to the allocation of the state and eligible local governments as compared to selected set-aside programs. Mr. Chairman, this Member rises in support of H.R. 4194 and urges his colleagues to support this measure. Mr. Chairman, I rise today in opposition to the final passage of H.R. 4194, the Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act for Fiscal Year 1999. I object because this bill fails to include any funding for the Americorps or other initiatives administered by the Corporation for National Service which are funded annually in this legislation. When coupled with the reduction of more than $5 million in funding for the Volunteers in Service to America (VISTA) program and the freeze in spending for the National Senior Volunteer Corps recommended in the Appropriations Committee's Report on the Departments of Labor, Health and Human Services, Education, and Related Agencies Appropriations Act for Fiscal Year 1999, the attack on the highly successful programs administered by the Corporation for National Service included in this bill will decimate opportunities to improve the lives of every American through strong community service initiatives. Over the years I have met countless activists as well as ordinary American citizens in the Second Congressional District who take heroic steps on a daily basis towards improving their community and their own lives. As a result, the Second Congressional District and my home state of Mississippi have made substantial progress in improving the standard of living for many of their residents. However, both the Second Congressional District and Mississippi still contain some of the poorest areas in the nation. We must recognize that Mississippi's economic status can never be permanently improved by either ignoring the current state of affairs or by simply writing a check. For too long policy makers here in Washington and elsewhere have followed one of these two courses of action. There have been rare exceptions--initiatives to provide not just economic assistance, but also the inspiration for people to join with their neighbors in the effort to improve their community. As every hard-working American knows, no one labors so well as when he feels that others are willing to stand there beside him and suffer through the task at hand. The Americorps, which is administered by the Corporation for National Service and normally funded in this bill, is perhaps the best example of a program which provides a tangible, uplifting presence in the numerous communities where it is active. There are more than five hundred Americorps volunteers in Mississippi today who have partnered with community leaders to provide hands-on assistance in improving access to everything from child care to literacy instruction. Most importantly, the Americorps volunteers' stirring example has inspired thousands of Mississippians to enter community service as well. Today there are more than 29,000 people of all ages and backgrounds who are helping to solve problems and build stronger communities in the 48 projects across Mississippi which are sponsored by the Americorps and other Corporation for National Services initiatives. Many of my colleagues on the other side of the aisle--including some of my friends from Mississippi--will say the Corporation for National Service and the Americorps program are wasteful or too bureaucratic. Yet I do not think any of us could find another initiative funded by the federal or state governments today which encourages 29,000 people to serve their nation and their community for a total cost of less than $7 million. Nonetheless, many former critics have finally started to see the positive benefits of the Corporation for National Service's work. Governor Kirk Fordice of Mississippi, widely regarded as one of the most conservative governors in the nation, made the following statement in support of the Corporation for National Service's efforts while visiting with Learn and Serve America students at the regional service- learning conference in Biloxi, Mississippi: As you know from your first hand volunteerism, service- learning offers the opportunity for today's young people and tomorrow's leaders to learn, while addressing local needs. Your hands-on experiences reinforce what you are learning in the classroom, promoting civic responsibility and showing that citizens working together are a powerful force. After the Americorps was created in 1993, it quickly adopted the straightforward motto of ``Getting Things Done.'' In the opinion of both myself and thousands of residents of the Second Congressional District who have benefited from this program, the Americorps truly has been ``Getting Things Done For Mississippi.'' For those who might doubt the effectiveness or importance of the Corporation for National Service and its Americorps program, the following is a complete list of all the active projects supported by the Corporation for National Service in Mississippi. Instead of making speeches in the marble halls of Washington about bureaucracy, inefficiency, disorganization or a host of other mistaken descriptions of the Americorps and the activities of the Corporation for National Service, I encourage any of my skeptical colleagues to visit these communities and talk with the beneficiaries of its work. 80 AmeriCorps Volunteers participate in the Delta Service Corps University Center for Community in Cleveland; 40 AmeriCorps Volunteers participate in the Delta Reads Partnerships at Delta State University in Cleveland; 6 AmeriCorps Volunteers participate in the Mid-South Delta LISC AmeriCorps in Greenville; 20 AmeriCorps Volunteers participate in the Mississippi Action for Community Education in Greenville; 4 AmeriCorps Volunteers participate in the Harrison County Human Resources Agency in Gulfport; 2 AmeriCorps Volunteers participate in the South Mississippi Family/ Child Center in Gulfport; 3 AmeriCorps Volunteers participate in the Desoto County Literacy Council Inc. in Hernando; 100 AmeriCorps Volunteers participate in the Volunteer Assistant Teachers Train to Become Teachers in Jackson; 30 AmeriCorps Volunteers participate in the AmeriCorps Assist Program in Jackson; 30 AmeriCorps Volunteers participate in the Campus Link in Jackson; 34 AmeriCorps Volunteers participate in the Campus Link in Jackson; 30 AmeriCorps Volunteers participate in the Metro Jackson Service Coalition in Jackson; 16 AmeriCorps Volunteers participate in the Partners in Readiness in Jackson; 2 AmeriCorps Volunteers participate in the Big Brothers/Big Sisters of the Tri-County Area in Jackson; 6 AmeriCorps Volunteers participate in the Governor's Office of Literacy in Jackson; 9 AmeriCorps Volunteers participate in the Mississippi Association of Cooperatives in Jackson; 3 AmeriCorps Volunteers participate in the West Jackson Community Development Corporation in Jackson; 7 AmeriCorps Volunteers participate in the St. Andrew's Mission, Inc. in McComb; 39 AmeriCorps Volunteers participate in the Teach for America Mississippi Delta in Oxford; 24 AmeriCorps Volunteers participate in the InterACT in Oxford; 20 AmeriCorps Volunteers participate in the Literacy for Lee County: Young Readers Today in Tupelo; 6 AmeriCorps Volunteers participate in the We Care Community Services, Inc. in Vicksburg; 5 AmeriCorps Volunteers participate in the Yazoo Community Action, Inc. in Yazoo City; 10 Learn and Service America Volunteers participate in the Biloxi School District in Biloxi; 250 Learn and Service America Volunteers participate in Rust College in Holy Springs; 6 Learn and Service America Volunteers participate in the Jackson School District in Jackson; 700 Learn and Service America Volunteers participate in the Mississippi Department of Education statewide; 1,500 Learn and Service America Volunteers participate in the Mississippi Commission for Volunteer Service statewide; 425 National Senior Service Corps Volunteers participate in the Hancock County RSVP in Bay St. Louis; 364 National Senior Service Corps Volunteers participate in the Hancock County Volunteer Program in Clarksdale; 315 National Senior Service Corps Volunteers participate in the Lowndes County RSVP in Columbus; 114 National Senior Service Corps Volunteers participate in the Jones County FGP in Ellisville; 388 National Senior Service Corps Volunteers participate in the Harrison County RSVP in Gulfport; 43 National Senior Service Corps Volunteers participate in the SCP of Harrison County in Gulfport; 72 National Senior Service Corps Volunteers participate in the SCP of Sunflower and Bolivar Counties in Indianola; 285 National Senior Service Corps Volunteers participate in the Capital Areas RSVP in Jackson; 212 National Senior Service Corps Volunteers participate in the Attala County RSVP in Kosciusko; 314 National Senior Service Corps Volunteers participate in the Laurel-Jones County RSVP in Laurel; 186 National Senior Service Corps Volunteers participate in the Simpson County RSVP in Mendenhall; 57 National Senior Service Corps Volunteers participate in the FGP Lauderdale County in Meridan; 519 National Senior Service Corps Volunteers participate in the RSVP Meridan/Lauderdale County in Meridan; 400 National Senior Service Corps Volunteers participate in the RSVP Adams County in Natchez; 84 National Senior Service Corps Volunteers participate in the Lafayette County FGP in Oxford; 280 National Senior Service Corps Volunteers participate in the Lafayette County RSVP in Oxford; 30 National Senior Service Corps Volunteers participate in the MDHS Jackson County SCP in Pascagoula; 370 National Senior Service Corps Volunteers participate in the Lee and Calhoun Counties RSVP in Tupelo; 79 National Senior Service Corps Volunteers participate in the Hinds/ Rankin FGP in Whitified. Mr. Chairman, the people who participant in the programs I have just mentioned want to see genuine change in their community and are willing to take action to bring about results. What better values could any of--Democrats or Republican--want to sponsor? I urge Members to oppose this bill; we should not be forced for yet another year to rely on the Conference Committee to restore funding for the Americorps and the Corporation for National Service. Let us support the Americorps and Corporation for National Service's volunteers across the nation so they can continue ``Getting Things done'' in their community.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume. (Mr. BEREUTER asked and was given permission to revise and extend his remarks.)

Mr. BEREUTER. Mr. Speaker, as chairman of the Subcommittee on Asia and the Pacific, I rise in support of H. Con. Res. 301, affirming our commitment to the people and government of Taiwan. This resolution is intended to repair the damage done by President Clinton's comments on Taiwan during the recent U.S.-China summit. The Subcommittee on Asia and the Pacific held a hearing on U.S.- Taiwan relations on May 20, 1998. At that hearing, administration witnesses offered repeated reassurances that Taiwan's interests would not be sacrificed during the June 1998 summit in Beijing. However, the President's statements in Shanghai regarding U.S. policy in regards to Taiwan, when he expressed what is known as the ``three nos,'' has caused considerable consternation both in Taipei and in this capital. As the foreign power most closely involved in PRC-Taiwan relations, the goal of U.S. policy has centered on easing tensions and striking a proper balance between China and Taiwan. Since 1972, through Republican and Democrat administrations alike, the United States has maintained the ``one-China policy.'' Our policy has been that the United States acknowledges that all Chinese on either side of the Taiwan Strait maintain that there is but one China and that Taiwan is a part of China. And the U.S. consistently has expressed its interest in a peaceful settlement of the Taiwan question by the Chinese themselves. Mr. Speaker, there is a great difference between this position and the President's statement of June 30, where he said, ``We don't support independence for Taiwan, or two Chinas; or one Taiwan, one China.'' As we have seen, Beijing has used these comments to increase pressure on Taiwan to begin talks on reunification. Beijing hard-liners may again choose to test our commitment that Taiwan's future be determined through peaceful means and take steps which may lead us into war. As you are aware, Mr. Speaker, the United States and China came dangerously close to war over Taiwan a bit more than 2 years ago, in 1996, when the U.S. found it necessary to send aircraft carrier task forces, two of them, to the region. In May 1996 the first fully democratic presidential elections ever held by a Chinese society took place on the island of Taiwan. Today, the United States and Taiwan share a vibrant mutually beneficial trade relationship. Almost 20 years after the enactment of the Taiwan Relations Act, our unofficial relations with the people of Taiwan are stronger and more robust than ever. This Member would congratulate the gentleman from Texas (Mr. DeLay), the distinguished majority whip, for offering this legislation reaffirming America's willingness to stand by its commitment to the people of Taiwan. Working together, the gentleman has made it possible for the resolution before this body today to be a strong affirmation of long-standing U.S. policy and the ``one China policy''. This Member wants to express his deep appreciation for the sponsor's effort to work with this Member to ensure the broadest possible support for H. Con. Res. 301. I urge my colleagues to support passage of H. Con. Res. 301. Mr. Speaker, I ask unanimous consent that I be permitted to yield the balance of our time to the gentleman from Kansas (Mr. Snowbarger) and that he be permitted to yield time.

Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and agree to the concurrent resolution (H. Con. Res. 301) affirming the United States commitment to Taiwan.

Mr. BEREUTER. Mr. Speaker, on that I demand the yeas and nays.

Mr. BEREUTER. Mr. Speaker, I reserve the balance of my time.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume to the gentleman from Arizona (Mr. Kolbe). (Mr. KOLBE asked and was given permission to revise and extend his remarks.)

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume in closing. Mr. Speaker, I want to thank, first of all, the distinguished ranking member of the International Relations Committee, the gentleman from Indiana (Mr Hamilton) for his excellent remarks, for his support, and also the distinguished gentleman from Michigan, member of the Committee on Ways and Means, for his insightful and very welcomed remarks. I would like to give just a couple of examples, in closing, about the difficulties we face in market access today in Japan. We heard a lot about the American flat glass industry some time ago. In fact, in 1996, the USTR deputy, Ira Shapiro, testified before the Ways and Means trade subcommittee that United States flat glass exports to Japan had increased 93 percent as a result of USTR's negotiated glass agreement with that country. That is true, but it most certainly does not tell the whole story. That 93 percent increase now gives us a total market share of 1 percent in Japan, a whopping 1 percent of the Japanese market. Over in the area of financial services, specifically in the insurance sector, Japanese companies control 98 percent of the life business in Japan and 97 percent of the non-life business in the primary insurance sector. USTR recently concluded that Japan has not implemented the deregulation provisions of the bilateral insurance agreement and has taken actions to undermine, in fact, the U.S. market share in the third sector. Finally, I would mention that since 1991, seven out of 10 new medicines launched in Europe and the United States remain unavailable in Japan. So we have major problems in pharmaceutical market access in that country. These are examples of just one of the things that we are urging the Japanese to do, and, that is, to open up their markets, remove nontariff barriers and give access to their consumers to American products and to products from throughout the world. Mr. Speaker, the chairman of the House International Relations Committee, the distinguished gentleman from New York (Mr. Gilman), is involved in a traffic delay at this point. He is supportive of the resolution. He wanted to have that support expressed. His entire statement will be made a part of the record as a part of the request of general leave. Mr. Speaker, I thank my colleagues for their support. I urge unanimous support for the resolution to recognize that Japan is a very important economic player in the world, the second largest economy, to recognize the positive steps they have taken but to also suggest very substantial directions that they need to take in order to make sure that the Asian financial crisis does not worsen.

Mr. BEREUTER. Mr. Speaker, on that I demand the yeas and nays.

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the people of Japan have spoken to their government officials about the need for economic reform. It is now more important than ever that the House of Representatives send a clear and unequivocal message seconding that call for reform by unanimously approving House Resolution 392. The House resolution emphasizes the importance of U.S.-Japan relations and stresses the urgent need for Japan to more effectively address its economic and financial problems and open its markets by eliminating informal barriers to trade and investment. This Member introduced the resolution on March 24, 1998. The House Committee on International Relations adopted it by voice vote on June 5. This resolution's arrival on the floor is particularly timely, I would think, for, as Clyde Prestowitz said in his July 17, 1998, opinion piece in the Washington Post, ``It is important that the United States and other countries move quickly to reinforce and elaborate the message of the Japanese electorate.'' That message, of course, was a demand for change in light of the continuing Asian economic crisis. The Asian financial crisis represents a serious threat to the economic growth of the United States and the global economy. Approximately one year ago, Thailand's financial crisis was described by the President of the United States and many other experts as a few small glitches in the road. Now, one year later, Japan and Hong Kong are in recession, Indonesia's 32-year leader Suharto is gone, Russia stands in desperate need of more international assistance, and the world is pleading with China not to devalue its currency. Despite Federal Reserve Chairman Greenspan's intentional down playing of the crisis so as not to disrupt the markets further, the Asian financial crisis threat is real, significant, and unfortunately not a short-term problem. This resolution states that Japan plays a crucial stabilizing role in the Asian-Pacific region and, therefore, must make a more effective contribution to leading the Asian-Pacific region out of its current financial crisis, insuring against global recession and reinforcing regional stability and security. This resolution notes that Japan has generously responded to the Asian financial crisis by providing $19 billion in second-line credit to the Republic of Korea, Thailand, and Indonesia. Nevertheless, it also urges Japan to be more directly involved in helping the ailing Asian economies by opening its markets, deregulating its economy, eliminating barriers to trade, fixing its financial sector, adopting permanent tax cuts, and strengthening the yen. Japan is the world's second largest economy and accounts for an amazing three-fourths of the total East-Asian gross domestic product. It certainly has the potential to play a leading role in pulling the region out of the financial crisis by serving as its engine of growth, or at least a second engine of growth along with the United States. The United States' response to the Mexican crisis is a good example of how Japan could jointly serve with the United States and Europe as the engines of growth for Korea, Thailand, Indonesia and the region. The regional leadership role that this resolution calls on Japan to accept is entirely consistent with Japan's stated goal of promoting strong domestic demand-led growth and avoiding a significant increase in external surplus. Yet, Japan is in a full-blown recession, 7 years of stalemate, with zero growth projected for 1998, followed by as much as a 2 percent contraction in 1999. Already, Japan's imports from most of its Asian trading partners have dropped substantially in the first quarter of 1998. For example, compared to the same period in 1997, Japan's first-quarter imports from Indonesia declined 46.5 percent, Japan's imports from Thailand declined 39.7 7 percent, and its imports from South Korea declined 38.5 percent. These weak economic fundamentals for Japan, coupled with a robust United States economy, have already weakened the value of the Japanese yen vis-a-vis the dollar. The weak yen has, in turn, stimulated a rapid expansion of exports and a fast-growing merchandise trade surplus with the United States, which increased from $48 billion in 1996 to $55 billion in 1997 and is on a record surplus pace in 1998. Although the United States was able to almost unilaterally absorb Mexico's imports after the peso crisis, the United States simply cannot economically or politically absorb all the additional imports from the Asian-Pacific region stemming from the financial crisis. Mostly because of the Asian financial crisis, the IMF estimates that the U.S. trade deficit with the world, already at $178 billion in 1997, could grow as much as an incredible $50 to $100 billion in 1998. And that is the growth, $50 to $100 billion. U.S. officials representing both Republican and Democrat administrations have long called for Japan to deregulate its economy and remove informal barriers to trade. More recently, U.S. Treasury and Federal Reserve officials have called upon Japan to take the tough steps necessary to reform the financial sector of the economy. Nevertheless, knowledgeable Japan observers have been underwhelmed by the scale and scope of the proposed reforms in Japan, including the financial sector big bang and a bridge bank to close bankrupt financial institutions. To paraphrase Secretary Rubin, it is time for Japan to move beyond virtual reform to real reform. Moreover, Japan's political leaders have stubbornly refused to abandon their export-dominated economic model while undermining Korea, Thailand and Indonesia's recovery from the Asian financial crisis. For example, Japan's current account surplus with the world has risen from $65.8 billion in 1995 to $93.5 billion in 1997, and is expected to exceed $100 billion in 1998. This resolution reinforces the administration's strategy to focus on key deregulation and competition policy initiatives in Japan. For example, it urges Japan to undertake a broader and faster deregulation of its economy, open its distribution system, and eliminate exclusionary and discriminatory business practices. These initiatives are aimed at helping highly competitive U.S. companies in sectors such as financial services, telecommunications, pharmaceuticals, construction materials, and consumer goods gain access to the Japanese consumer. Furthermore, this resolution calls upon Japan to take other steps to reduce numerous non-tariff barriers to imports and foreign investment. It also addresses reform of the financial sector in Japan by calling upon that country to promptly dispose of non-performing bank loans while taking other necessary steps to reform the banking system. Long before Prime Minister Hashimoto's very public wavering on tax cuts for Japanese, this resolution stressed the need for Japanese officials to enact permanent tax cuts for individual Japanese citizens. Finally, this resolution properly, I think, recognizes that Japan must immediately adopt all appropriate policies to strengthen the yen. An excessively weak yen threatens not only the entire Asian-Pacific region but also global trade and stability. Mr. Speaker, the world is closely watching Japan to determine if that country's leaders can steer the world's second largest economy out of recession. The implications of their actions or inactions are enormous for Japan itself, for the regional and global economy, and for the United States. If Japan's newly elected leaders and a prime minister yet to be elected choose the right path, they can help ensure that the Asian financial crisis is a temporary setback on the road to further economic liberalization and democratization in Asia. But if they choose the wrong path, they have the potential to prolong the crisis and perhaps even contribute to a global economic slowdown that will have a significant impact on the United States and a very negative one. Mr. Speaker, I urge my colleagues to support the resolution. Mr. Speaker, I reserve the balance of my time.

Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H. Res. 392.

Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 392) relating to the importance of Japanese- American relations and the urgent need for Japan to more effectively address its economic and financial problems and open its markets by eliminating informal barriers to trade and investment, thereby making a more effective contribution to leading the Asian region out of its current financial crisis, insuring against a global recession, and reinforcing regional stability and security, as amended.

Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I appreciate the remarks of the gentleman from Massachusetts, and I appreciate the distinguished chairman of the full committee for yielding me this time. I appreciate the gentleman from Massachusetts recognizing the ideological diversity of the Republican Party. Most of the people that are in favor of the flat tax, that is to say an unadapted flat tax, are would-be Presidents or would-be, frustrated elected officials who cannot get elected. But when I speak at my town hall meetings about this subject, I warn people about the loss of the mortgage interest deduction and about the fact that middle income Americans would pay a lot more income taxes, proportionately, under an unadapted flat tax. But back to the subject at hand in a direct sense and that is, I rise in strong support of H. Con. Res. 208 as a cosponsor of the resolution. It expresses a sense of Congress that affordable housing is a national priority. I would like to commend the distinguished chairman of the subcommittee, the gentleman from New York (Mr. Lazio), for introducing this bill. I could list a number of reasons for support of this legislation, but I will list only three. One, the goals of the Housing Act of 1949 include among other things, the provision of a decent home and suitable living environment for every American, have not yet been met. Much still needs to be done to ensure affordable homeownership for American families, and H. Con. Res. 208 is a step in the right direction. It reminds us of those responsibilities. Two, as referenced by the chairman, the distinguished gentleman from Ohio (Mr. Leach), our country is in the midst of a booming economy, and that has resulted in an impressive 66 percent of all American families owning their homes, which is a record rate. However, this economic prosperity also increases the overall demand for both existing and new construction, which in turn results in a lower supply of affordable homes to be purchased. As a result, there is a substantial shortage of affordable housing in America. I would say a third reason to support H. Con. Res. 208 is to respond and assist State programs focused on providing affordable housing. Reasons for these legislative actions include the lack of Federal emphasis and resources for affordable housing. I think it is fair to say that is an accurate criticism. It is a criticism that could well have fallen upon previous administrations as much as it falls on this one; it could fall on previous Congresses in recent times as well as it can fall on this one. For those three reasons, among others, this Member endorses H. Con. Res. 208. Of course, the private sector is still the main provider of affordable housing. However, government should continue to play an important role in providing or facilitating affordable housing. I urge my colleagues to vote ``yes'' on H. Con. Res. 208.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, this Member rises in the strong support of H.R. 2870, the Tropical Forest Protection Act and congratulates the distinguished gentleman from Ohio [Mr. Robb Portman] for introducing this important legislation. The world's tropical forests, which are biodiverse, economically crucial, and ecologically irreplaceable, are now rapidly disappearing. Many of these forests are located within developing nations that are heavily dependent upon foreign aid and burdened by extensive external debt. H.R. 2870 enacts measures to protect these fragile and complex ecosystems from further exploitation by providing a unique solution to two pressing global problems--third world debt and deforestation. Mr. Speaker, twelve years ago this Member offered one of the first ``Debt-for-Nature'' swaps as an amendment to the International Financial Institutions Act. This earlier legislation called on the World Bank to initiate discussions to ``facilitate debt-for-development swaps for human welfare and environmental conservation.'' Also, this Member strongly supported the 1990 legislative initiative known as ``Enterprise for the Americas'' (EAI) introduced by President George Bush which provided debt relief for the countries of Latin America in return for investments by these nations in environmental protection. This initiative remains in effect today, serving as an engine of growth to the Latin American economy and establishing as its legacy some of the largest tropical forest parks in the world throughout the region. H.R. 2870 is a creative variation on the EAI theme. Several constituents from this Member's home state of Nebraska have expressed their support for this legislation. One letter in particular detailed a family's involvement in making a record of the plants and herbs found in tropical forests in an on-going effort to identify new medicines. This legislation will preserve and protect rain forests in order that these efforts can continue, benefiting mankind by identifying new cures to diseases. Mr. Speaker, this Member is particularly pleased that Bangladesh is eligible for debt relief under the provisions of H.R. 2870. Bangladesh is a country the size of the state of Wisconsin with a population estimated at 125 million. Due to the pressure put on this small nation's land resources, there is now a serious deforestation problem in Bangladesh. Bangladesh's topography makes it prone to natural disasters, especially floods, which were particularly severe in 1988 when two-thirds of Bangladesh's sixty-four districts experienced extensive flood damage. Bangladesh, one of the world's poorest nations, is also struggling with overwhelming PL-480 debt. At the beginning of this year, Bangladesh's PL-480 debt amounted to $501.7 million. This debt, accumulated over more than a decade, now requires substantial payments which Bangladesh, one of the world's poorest nations, can ill afford. My colleagues may recall that an oversight prevented this matter from being addressed in 1993 when debt forgiveness legislation was approved for many other significant debtor countries. Any financial assistance given to Bangladesh is negated by the payments it is now required to make on its PL-480 debt, rather than being directed towards worthwhile projects designed to stabilize population growth, establish health programs, and build democracy. To be eligible for debt reduction under H.R. 2870, a country must contain an appropriate tropical forest and meet specific economic and political criteria. At the March 10, 1998, markup of this legislation by the Committee on International Relations, the Administration testified that Bangladesh did indeed possess the requisite tropical forests of regional importance. The region in Bangladesh known as Chittagong and the Chittagong Hill Tracts contain much of Bangladesh's tropical rain forests. Over the years, however, this area has suffered greatly from the effects of consistent soil erosion and deforestation due to Bangladesh's ever- expanding human population as well as the effects of natural disasters. It remains, however, the home of biodiversity as well as a variety of wild animals, to include the world-famous and endangered Royal Bengal Tiger. The political eligibility criteria in H.R. 2870 require the debtor country to have a democratically-elected government which is not pursuing egregious policies in the area of human rights, narcotics, or terrorism. The State Department has confirmed that Bangladesh meets this political criteria. The economic eligibility criteria requires the debtor country to have in place or be making progress toward an IMF arrangement, World Bank structural or sectoral adjustment loans if necessary; to have put in place major investment reforms; and, if appropriate, to have agreed with its commercial bank lenders on a satisfactory lending program. It is this Member's understanding that the IMF is negotiating a potential staff-monitored program with Bangladesh. In addition, as evidence of major investment reforms, Bangladesh has concluded a bilateral investment treaty with the United States. On a preliminary basis, the Department of the Treasury has determined that if Bangladesh concludes its negotiations on an IMF staff-monitored program, it should meet with economic eligibility requirements for debt reduction under this legislation. Based on the above, this Member concludes that Bangladesh does indeed meet all three provisions of this legislation. Debt buybacks such as are envisioned in this legislation would permit Bangladesh address its lingering debt problem, while preserving its threatened tropical forests. In conclusion, Mr. Speaker, this Member would again like to thank the distinguished gentleman from Ohio [Mr. Portman] for introducing this important piece of legislation. This Member would also commend the efforts of the Chairman of the Committee on International Relations, the distinguished gentleman from New York [Mr. Gilman] for the leadership he had demonstrated over the years on environmental matters. General Leave