Mike Simpson

Mr. SIMPSON

Mr. SIMPSON. Madam Speaker, I want to thank Chairman Boozman and Ranking Member Herseth for their work on this piece of legislation. Earlier this year, I introduced H.R. 419, which would authorize the President's National Hire Veterans Committee through 2008. The bill before us today, H.R. 3665, not only extends the life of this important committee, but also provides for its continued operation long into the future under a new Advisory Committee on Veterans Employment Training and Employer Outreach. It is important that we continue to support and fund the work of this committee which strives to make employers and businesses more aware of the valuable role that veterans play in the public workforce. Today's employers do not often realize the wealth of skills possessed by the men and woman returning from duty in the Armed Forces. Through the creation of the One Stop Career Centers for veterans and the development of hirevetsfirst.gov Web site for potential employers, the President's National Hire Veterans Committee has fostered a vital link between military and civilian employment. As Veterans Day approaches many of us take for granted the sacrifices made by those who defend our Nation. Voting for this bill is a way to truly show our veterans that we appreciate them and are willing to support them not only when they are serving our country abroad, but when they return home as well. I urge my colleagues to support H.R. 3665 and thank them for their work on this bill.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise in strong support of this conference report. Once again this year, the bill before us is the result of a bi- partisan atmosphere in the Energy and Water Subcommittee that is fostered by Chairman Hobson and his ranking member--Mr. Visclosky. I want to thank both of them for the manner in which they approach the many issues before the committee and for producing a bill that will pass today with little or no opposition. First, the Energy and Water bill begins a new chapter in the history of the Army Corps of Engineers which will lead to better budgeting, more accountability, and the completion of high-priority projects in a quicker timeframe. I want to commend Chairman Hobson for his insistence on reforms to the Corps budgeting process and for demanding greater accountability from the Corps to Congress and the American people. Second, the bill makes tremendous investments in our nation's science and energy-related programs. Our National Laboratories, under this bill, will continue and expand their cutting edge work on the many pressing scientific challenges facing our Nation. Perhaps even more important in a time of high energy prices, this bill will expand our Nation's efforts to become less dependent on foreign sources of energy. For my home state of Idaho, this bill will provide a boost to the Idaho National Laboratory's ongoing work to design and build a new generation of nuclear reactors, close the nuclear fuel cycle, protect our Nation's critical infrastructure from cyber-based attacks, and secure radioactive nuclear materials from those who would do us harm. Finally, this bill continues our Nation's efforts to establish a long-term repository for spent nuclear fuel and high-level nuclear waste at Yucca Mountain. While the Yucca Mountain funding in the bill represents an overall decrease from last year, it still provides $500 million to move the project forward toward a license application and construction. I'm committed to seeing Yucca Mountain finalized and I know Chairman Hobson is as well. I remain hopeful that the current challenges facing the program will soon be overcome and that an aggressive schedule for completion of the project can be adopted in the very near future. In closing, I want to again recognize the bi-partisan manner in which this bill was written and acknowledge the tremendous work of all of the staff on the Subcommittee. I urge my colleagues to support the bill.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to pay tribute to a unique individual in Idaho of high moral character and immense talent, J. Kirk Sullivan. J. Kirk Sullivan is widely known in Idaho as the current chairman of the Idaho Republican Party, but Dr. Sullivan is much more than that. He is a husband, father, grandfather, friend, engineer, entrepreneur, businessman, and most recently, he is the recipient of the highest award granted by the National Eagle Scout Association--the Distinguished Eagle Scout Award. As several of my colleagues know, the Distinguished Eagle Scout Award is a rare honor indeed, given only to those who have held the rank of Eagle Scout for 25 years or longer, have gained status of fame or eminence in their life work, and have shared their many talents with their communities on a voluntary basis. In each of these categories, Kirk not only meets the requirements, he far surpasses them. Kirk has participated in many organizations and boards, currently serving as the Ore-Ida Council Boy Scouts of America President, as a member of the Board of Trustees for the Public Employees Retirement System of Idaho, Board of Trustees for Saint Alphonsus Regional Medical Center, and as a member of the Idaho Governor's State Science and Technology Advisory Council. As mentioned earlier, Kirk is married to Elizabeth M. Sullivan, they have two children and three grandchildren. Originally from South Carolina, Kirk attended Clemson University where he earned a Ph.D. and M.S. in chemistry. He also attended the Massachusetts Institute of Technology Program for senior executives. During college he was a member of U.S. Army Reserve. In his professional life, Kirk is a partner in Veritas Advisors, a philanthropic fundraising and political consulting firm. Kirk retired from the Boise Cascade Corporation in 1998 after 27 years with the company. He retired as vice president of Governmental and Environmental affairs. He also worked for the FMC Corporation for 13 years as an engineer, technical superintendent, and marketing manager. In reviewing the criteria for the Distinguished Eagle Scout Award, I learned that only nominations of truly distinguished individuals, those receiving extraordinary recognition, fame, or eminence, are accepted. Previous award recipients include President Gerald Ford, Astronaut Neil Armstrong, Secretary of Defense Donald Rumsfeld, retired General William Westmoreland, Senators Richard Lugar and Lamar Alexander, film director Steven Spielberg, and one of our former colleagues J. J. Pickle of Texas. This is a pretty impressive cast of characters with which Kirk's name will now be associated. He is deeply deserving of this honor and I want to take this opportunity to thank Kirk for his service to his community, the State of Idaho, and the United States of America. Kirk is a good citizen, a good friend, and a great model for us all.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to recognize Citigroup and commend them on their leadership in aiding Hurricane Katrina and Rita relief efforts during the recovery and rebuilding of the affected area. Citigroup and Citigroup Foundation donated $2 million to Habitat for Humanity International in support of ``Operation Home Delivery.'' In addition to a $1 million immediate donation, the Citigroup Foundation is matching eligible Citigroup employee donations dollar for dollar to the American Red Cross up to $3 million, for a potential total of $7 million. Hundreds of Citigroup volunteers are building and helping to organize the Habitat for Humanity build in Humanity Plaza where NBC News' ``Today'' show hosted the construction of Habitat homes as part of Make a Difference Today. In addition, to help the Red Cross in its nationwide telethon on September 9th, calls were routed to Citigroup call centers in St. Louis, Dallas and Jacksonville. Over 900 Citigroup employees answered more than 8,500 calls and helped to raise over $900,000. Citigroup is committed to working with affected customers to alleviate the temporary financial impact of this disaster. They are implementing business-specific initiatives for customers in FEMA designated Individual Assistance Areas including deferred and eliminated interest and payments, elimination of interest and fees on current and delinquent accounts, suspension of collection calls and negative credit bureau reporting, implementation of disaster credit line increases, no foreclosures on mortgages, and other solutions as appropriate. At the Citi Cards site in Boise, Idaho, where I recently visited, employees donated more than $139,000 to the United Way of Treasure Valley during their 2006 pacesetter campaign in July. Site President Tod Wingfield said, ``The strength of an organization comes from the people within it. The same holds true for the health of a community. We are so proud to have employees who demonstrate their passion and generosity for others by contributing to programs that benefit so many people in our valley. This sense of community and sincere desire to help others is part of what makes Citi a great place to work.'' Citi Cards presented a check to United Way and recognized employees at the United Way Community Campaign Kick-off event in August. I want to thank and congratulate Citigroup and employees for their commitment to building strong communities.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to join with the community of Ammon, Idaho, in celebrating the city's 100th anniversary. This important milestone has been reached through the hard work and tenacity of the early settlers as well as the vision and spirit of today's citizens. The City of Ammon is located to the east of the City of Idaho Falls in Bonneville County. It is one of east Idaho's fastest growing communities. Early settlers would hardly recognize the flourishing business district and the numerous residential developments. The population of Ammon now exceeds 10,000, with a median age of only 28 years for its residents. Many young families are enjoying the ambiance of a small town as well as the convenience of living within a few miles of a large metropolitan center. Their enthusiasm and willingness to volunteer time and energy are helping the community to grow and prosper. A multitude of new businesses are joining the older more established ones of Ammon's early years to develop a vibrant, thriving economy. Mr. Speaker, I would like to congratulate all those who have been involved in the ``100 year celebration of the City of Ammon''. I know many of the citizens of Ammon and have enjoyed their friendship over the years. I have worked with Mayor Ard on projects to better the City of Ammon, and I wish him and all the members of the community well as they begin an exciting second hundred years.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to recognize the Assistance League of Boise and commend them on all of their efforts to help local children. The League has established a program called Operation School Bell. This program distributes new clothing, a new coat, and an age appropriate hygiene kit to children who would not have these essential items otherwise. We will never be able to measure what this program achieves. If Operation School Bell did not exist, these children would not have new clothes to wear to school. The enhanced self-esteem each child receives can't be measured, but is noticed by all who participate. When a child feels good about how they look and fit in, they perform better at school, are happier people, and are less likely to get into trouble. This impact on our society is tremendous. I want to thank and congratulate all who participate in the League to make this possible. You truly touch lives and it does not go unnoticed.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, last month I had the pleasure of hiking and camping in Idaho's rugged Sawtooth National Recreation Area (SNRA) and White Cloud Mountains. In part, my trip was a tour of areas that would become wilderness and lands that would be released from wilderness study as part of my bill, H.R. 3603, the Central Idaho Economic Development and Recreation Act (CIEDRA). The beauty of the mountains and lakes that I viewed is difficult to describe. From the solitude of Castle Lake to the majestic views from Baker Lake towards Castle and Merriam Peaks, it is difficult not to be in awe of the Boulder-White Clouds. I would like to thank the United States Forest Service for making this trip possible. In particular, Ed Cannady, Sawtooth National Forest Recreation Manager who did an exceptional job in planning and guiding us on the trip. It was also a pleasure to have the Supervisor of the Sawtooth National Forest, Ruth Monahan, the SNRA Area Ranger, Sara Baldwin, and the Deputy SNRA Deputy Area Ranger, Joe Harper join us on our trip. These folks represent the Forest Service very well. Finally, I want to thank Debra Peters, SNF Trail Maintenance Foreman and Raina Phillips, SNF Wilderness Ranger for packing us in. Those young women showed a lot of experience in working with pack stock, and it's great to see the Forest Service employs such talented stock hands. Mr. Speaker, I look forward to future trips into the Boulder-White Clouds and will continue to work on CIEDRA so that all Americans can enjoy the area for all forms of recreation.

Mr. SIMPSON

Mr. SIMPSON. Mr. Chairman, I thank the gentleman.

Mr. SIMPSON. Mr. Chairman, will the gentleman yield?

Mr. SIMPSON. Mr. Chairman, I appreciate the gentleman from Arizona yielding to me for the purposes of a colloquy on an issue of report language that accompanies H.R. 3057, the foreign ops appropriation bill, and for his willingness to work with me through conference on this report language. Mr. Chairman, report language appears for a reason. It is meant to send a strong message to Federal agencies; in this case, the Export- Import Bank. I am greatly concerned about the message this report language sends. I am worried it has the appearance of trying to encourage the approval of a loan that does not meet the statutory requirements. Before a loan should be brought before the board for a vote, it must meet the congressionally-mandated test for export additionality, foreign competition, and net benefit to the U.S. economy. If we want to consider changes to the statutory requirements, those changes should be addressed during the reauthorization of the Export-Import Bank that is scheduled to occur next year. I look forward to working with the chairman and the Senate in conference regarding the committee's intent of any report language addressing this issue.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to raise my concerns about a proposal being floated that would compel the Ex-Im Board of Directors to bring up and vote on every proposal for Ex-Im Financing, whether or not the proposal met the basic--congressionally mandated--conditions for approval. This would be a bad policy in general, and particularly with respect to industries which affect our national security, such as, the semiconductor industry. Legislation compelling the Board of Directors to vote on a particular application for Ex-Im financing--and one that the Chairman has carefully considered and rejected--is bad policy and threatens to subvert the structure, policies, and procedures of the Export-Import Bank. The Chairman is responsible for bringing financing proposals before the full Board of Directors and ensuring that only those financing proposals which meet the statutory criteria are presented for a vote. If a deal fails to meet the basic criteria for financing, then it should not be brought up for a vote. To do otherwise would ignore Export-Import Bank legal requirements and procedures, and completely and inappropriately politicize Ex-Im financing. Earlier this year, Ex-Im Chairman, Phillip Merrill carefully considered a proposed $770 million financing package for a Chinese semiconductor manufacturer, SMIC, and ultimately determined not to bring the proposal before the Board of Directors. Because the proposal clearly failed the statutory requirements, the Chairman was completely justified in that decision. As Mr. Merrill noted at a hearing before the House Small Business Committee on April 6, 2005, ``It is my job to take the case to the board if we believe the case does not violate the mandate of Congress.'' In this case, the proposed SMIC financing failed two separate and independent statutory requirements for Ex-Im approval: namely, the ``economic impact'' requirement, and the ``additionality'' requirement. First, in evaluating the ``economic impact'' requirement, Ex-Im is required by statute to consider any serious adverse effect financing might have on the competitive position of U.S. manufacturers. Ex-Im is expressly prohibited from making a loan or guarantee if its analysis concludes that the competing domestic industry would be adversely affected because either (i) the product supported by the financing will compete with a U.S. producer, or (ii) the commodity is in oversupply. In reviewing this case, the Ex-Im Chairman evaluated a study that demonstrated that the products made in SMIC's Chinese fabrication facilities--DRAM and other types of semiconductors--would compete with U.S. producers and were in serious oversupply, and that if the deal went through it would result in the loss of thousands of high-paying technology jobs in the U.S. semiconductor sector. The study also pointed out the economic and political folly of having U.S. taxpayers finance the export of high-tech jobs and technology to China, particularly given the current exodus of U.S. manufacturing jobs to that country and the massive trade deficit the U.S. has with China. Based on this unrebutted evidence, the Chairman correctly concluded that the SMIC financing proposal failed the ``economic impact'' requirement. The SMIC financing proposal also failed the separate ``additionality'' test. The Chairman is required to ensure that no proposal is submitted for vote when the proposal merely duplicates available private sector financing. The ``additionality'' test can be met if there is a confirmed competing loan guarantee on the table from a foreign export credit agency or if there is some sort of market failure and the transaction would otherwise not go forward without the Bank's involvement. Neither of those circumstances is present in the SMIC financing proposal. Indeed, recent developments confirm beyond any doubt that SMIC has no need for a guarantee funded by the United States taxpayers. Only two weeks ago, SMIC announced that it obtained a $600 million loan from Chinese banks--all without an Ex-Im guarantee. The Chairman correctly concluded that the SMIC financing proposal failed the ``additionality'' requirement. China Does Not Need U.S. Government Assistance to Develop Its Semiconductor Industry There is a significant danger in sending advanced semiconductor manufacturing equipment to China, especially if those exports are taking place as a result of subsidized support from the U.S. Export- Import Bank. The economic costs of providing advanced manufacturing equipment to China are high. A recently-released report quantifies job displacement in the United States as a result of the United States' rising trade deficit with China since 1989: 20,000 lost jobs associated with the production of communications equipment; 64,400 lost jobs associated with the production of home audio and video equipment; and 53,300 lost jobs associated with the production of computers and office equipment. In addition, more than 46,200 jobs were estimated to have been lost in the semiconductor industry since 1997. Job losses in these electronics industries accounted for more than one-quarter of total job displacement documented in this report. Another significant concern relates to the migration of high-tech production to China because of the strategic importance of this technology, and the ability of the Department of Defense to maintain an edge in the development and deployment of advanced communications, command and control and weaponry. According to a recent report by the Defense Science Board, the area of greatest concern is in the U.S. microelectronics sector which supplies defense, national infrastructure and intelligence applications. Dependence on China for supplies of semiconductors and other microelectronics would leave the United States very vulnerable. Significant risks of supply interruptions exist and include natural disasters like earthquakes but also heightened tension between China and Taiwan could lead to significant disruptions of critical parts and supplies. China also has taken steps to provide WTO-inconsistent subsidies to unfairly promote their semiconductor industry. China has adopted aggressive policies to promote domestic manufacture of semiconductors. Income tax incentives include a 5 year tax holiday plus 5 years at half-tax for reinvested capital with the clock starting when profits start. It is providing free land for industrial parks. Until recently, China applied a 17 percent value added tax (VAT) to imported chips, but not to those made in China. Agreements with the World Trade Organization on VAT may have negated the impact of the full 17 percent on imported chips however while amounts over 3-6 percent are still rebated for Chinese-made chips. The number of engineering graduates in China is far outpacing U.S. totals so that students no longer have to come to the U.S. to attend school. u.s. taxpayer support for the chinese semiconductor industry: unjustified on any grounds There is no economic justification for the United States government to be underwriting investments in the Chinese electronics industry. China has an extremely competitive and rapidly expanding electronics sector. Moreover, the Chinese government already offers a host of incentives for investing in integrated circuit (``IC'') production facilities. The U.S. Semiconductor Industry Association (``SIA'') has in fact raised repeated concerns regarding the level of government assistance to China's IC firms. History has shown that the movement of electronics manufacturing to lower-wage countries has had deleterious effects on U.S. employment. Recently, it is higher-valued manufacturing activity that has exited the United States for China and other low-wage production sites. Electronics industry sources highlight that the exodus of advanced manufacturing has negative implications for engineering and R&D activity in the United States. A just-released report quantifies job displacement in the United States as a result of the United States' rising trade deficit with China since 1989: 20,000 jobs lost associated with the production of communications equipment; 64,400 jobs associated with the production of home audio and video equipment; and 53,300 jobs associated with the production of computers and office equipment. In addition, more than 46,200 jobs were estimated to have been lost in the semiconductor industry since 1997. Job losses in these electronics industries accounted for more than one-quarter of total job displacement documented in this report. The financing incentives contemplated by the Export-Import Bank are neither necessary nor appropriate. The Chinese IC industry has already been extremely successful in attracting investments through commercial channels, and the Chinese government already provides a wide range of incentives. In addition, assistance to the Chinese semiconductor industry will disadvantage a U.S. industry that provides high-value jobs and other economic benefits in the United States. china is highly competitive in the global electronics sector China has major advantages in electronics manufacturing. For one, China's labor pool is inexpensive, skilled, and highly motivated. Production worker wages are as low as $120 a month, and skilled IC designers make on average $2,000 a month. In sophisticated electronics, direct labor in China costs less than 10 percent of total costs of production. The number of trained engineers increases by 350,000 individuals annually. Young workers and managers willingly put in 12- hour days and work weekends. As for inflationary pressure on wages, the chief Asia-Pacific economist at Morgan Stanley notes that China's ``vast pool of surplus labor . . . keep down labor's pricing power.'' China also provides a huge and booming internal market that will further spur domestic production efficiencies. China's gross domestic product increased 9.1 percent in 2003, and the country emerged as the world's largest and most rapidly growing market for semiconductors. The existence of multiple suppliers creates intense domestic competition, further contributing to low wages and prices. Electronics manufacturing in China began with finished consumer appliances, and now their component parts are also increasingly manufactured in China. The IC industry is one of the newer boom industries in China. A Chinese industry sources note that more than 10 fabs started operations in China in 2002. Most of the early Chinese IC operations used the smaller 6-inch wafers, lagging the 8-inch and larger wafer technology common in the United States, Europe, and Korea. That is changing. SMIC is now at the forefront of global production technology for semiconductors by bringing a 12-inch wafer fab on line in 2004. SMIC plans four more 12- inch fabs to come on line by 2006. The proposed equipment financing is substantial not only for SMIC but for the Chinese IC industry as well. China's 10th Five-Year Plan, which is in effect for the period 2001-2005, anticipates investments totaling $10.3 billion in new IC production lines. SMIC's new equipment purchases represent more than 10 percent of the entire amount anticipated to be invested in China over the course of 5 years. Moreover, China's revenue from fab operations was approximately $400 million in 2002. The proposed financing is thus three times the value of fab revenues in a recent year. In 2003, China is estimated to have spent three times the amount on new fab construction as all of North America. China accounted for about 5 percent of existing fab capacity in 2003, ranking seventh in the world; however, China accounted for fully 33 percent of fab capacity under construction in 2003, ranking first in the world. Taiwan and Korea followed somewhat distantly, accounting for 14 percent and 13 percent, respectively of fab capacity under construction the same year. In other words, China is rapidly emerging as a major semiconductor producer with some of the most modern and advanced facilities in the world. As Harvard University economist Richard B. Freeman has observed, ``China . . . can compete both with very low wages and in high tech. . . . Combine the two, and America has a problem.'' There is simply no economic need for U.S. taxpayers to be underwriting investments in the Chinese electronics industry. Every indication is that industry is booming, with investment flowing from a variety of sources. One industry source estimates that China already produces one-third of the world's electronics, and that will rise to one-half by 2010 or 2012. China offers a host of incentives for investing in the IC industry. China emerged as a contender in the global electronics industry as recently as the late 1990s. One product launched during China's Ninth Five-Year Plan (1996-2000) was the 909 Project, administered by China's Ministry of Science and Technology. Investments under the 909 Project totaled over $1.2 billion. The primary beneficiary was the Shanghai Hauhong NEC Electronics Co., with was formed to design and produce both memory and logic ICs. In advance of China's joining the World Trade Organization (which occurred in 2001), a number of investment incentives were introduced in 2000. For example, in June 2000, State Council Document 18, entitled ``Policies to Encourage the Development of the Software and IC Industries,'' established a framework to attract investment to the Chinese IC industry. These incentive applied primarily to fab operations, and were effected through the reduction of effective value- added tax (``VAT'') rates. In December 2000, Shanghai's Document 54, entitled ``Policies and Regulations Related to the Development of the Software and IC Industries,'' expanded the Document 18 incentives to design, packaging, and test facilities. As noted further below, the U.S. Semiconductor Industry Association subsequently raised concerns that China's VAT incentives provided discriminatory treatment. Also in 2000, the Chinese central government updated its list of industries for which foreign investment is encourages, including more advanced IC production operations. China's Ministry of Science and Technology also designated the IC industry as a high priority in its 863 Program, which supports key technologies through research and development. Within a few years, the 863 Program had provided grants to more than 100 IC design centers, which had more than 1 billion RMB in annual sales. China ratified its Tenth Five-Year Plan in March 2001, and the government stated at that time that its goal was to invest $120 billion in the IC industry by the end of 2005. Also in 2002, State Administration of Taxation Document 70 authorized VAT reductions for the IC industry, and State Council Document 51 added incentives for venture capital investments in the same industry. In additional to incentives from the central government, regional authorities compete to attract investment in IC facilities. The Shanghai region is a leading area for semiconductor activity. Even within this region, however, localities offer competing incentives. SMIC is located in the Zhangjiang High-Technology Park in the Pudong District. Incentives available to enterprises in Pudong include the following: Subsidies for interest rate payments; Investment tax credits for infrastructure expenses; A variety of rebates of VAT taxes; Allowance for deduction of salaries and training costs for corporate income tax purposes; Additional subsidies allowed for new post-graduate positions created; and Special tax incentives for fabs producing below the .25 micron level, including exemptions on any production and testing equipment. the u.s. semiconductor industry association has repeatedly raised concerns about chinese semiconductor industry incentives SIA has voiced numerous concerns about Chinese practices that discriminate against U.S. suppliers. As recently as December 21, 2004, SIA summarized its most pressing concerns in comments to the U.S. Trade Representative on foreign trade barriers. These comments highlighted the following: China's VAT rebate scheme imposes a cost penalty on imported semiconductors. Such a scheme strongly suggests that China is not honoring the national treatment commitments required under Article III of the GATT, to which China is bound as a member of the World Trade Organization. China had planned to implement a proprietary wireless encryption standard. According to SIA, ``It was planned for implementation even though the technical details of the Chinese requirements were not readily available to international firms. Later reports indicated that Chinese authorities would require foreign firms to engage in value- added production with a select list of local firms to obtain import permits in order to sell wireless LAN equipment in China. Products already in-country would have also required permits. If enacted, such requirements would have set a dangerous precedent by imposing technology transfer and local content requirements that China committed to eliminate with WTO accession.'' China has delayed implementation but there is still significant pressure for a unique Chinese standard. There have been other attempts to create unique Chinese standards, including for DVDs, HDTV, RFID, digital cameras, and electronic imaging for cellular phones. According to SIA, ``Standards in China are often developed by government authorities through a nontransparent process, and without input of key stakeholders, in particular neglecting international ones. Unique Chinese requirements in many cases would require product redesign, creating additional costs to U.S. firms in development expenses and lost revenue.'' China's intellectual property laws have serious deficiencies--to the point that China's compliance with the WTO TRIPs Agreement is in question. China's legal system hampers IP enforcement by making it more difficult both to bring, and to succeed in, cases against IP violators. SIA calls on China to enact legislative reforms in this area. SIA also notes concerns as regards transparency in China's rule- making procedures. SIA questions, for example, whether environmental regulations are not in fact more trade barriers. In October 2003, SIA also released a comprehensive review of Chinese incentive programs benefiting semiconductor producers. SIA concluded as follows: Maintaining U.S. leadership in microelectronics is critically important to the economy and national security of the United States. Government policy measures in any country or region which induce significant migration of the U.S. microelectronics infrastructure--capital, enterprises, individuals--warrant careful scrutiny by U.S. policymakers. Several aspects of China's current developmental effort in microelectronics are problematic because they could erode the U.S. microelectronics infrastructure and contribute to an eventual loss of U.S. leadership in this field. Historical impact of the loss of electronics manufacturing in the United States The U.S. electronics industry has been migrating slowly to off-shore manufacture for many years. According to a study by the Bureau of Labor Statistics, U.S. competitiveness in consumer electronics began to slip in the 1960s. Television production was one of the first industry to migrate off-shore. Jobs in the U.S. television industry dropped by half from 1971 to 1981. Innovations were increasingly introduced by foreign television makers, and this is evident in the leading position of non- U.S. brand name domination of high-definition and digital television at the present time. According to the National Advisory Committee on Semiconductors, U.S. electronics manufacturers lost nearly 15 percent of the global market in the second half of the 1980s. This translated into more than $100 million in lost revenues for U. S. companies during that period--a loss has since grown considerably given enormous expansion in global electronics markets. A 1997 survey of electronics manufacturing in the Pacific Rim observed that ``the rapid development of electronics manufacturing in East Asia poses a challenge to overall U.S. manufacturing competitiveness as the United States becomes increasingly dependent on Asian suppliers. . . . In this survey, China was already observed to attracting a great deal of component manufacture. Initially, China drew manufacturing from neighboring Asian countries, that could no longer compete on labor costs. U.S. electronics manufacturing has also been affected. The U.S. printed circuit board industry is losing jobs to China as U.S. producers have seen sales slump from $11 billion to less than $5 billion since 2001. Meanwhile, printed circuit board exports from China have doubled. Semiconductor device production remained a leading U.S. electronics industry even as more labor-intensive assembly operations relocated to low-wage countries. One key has been the retention of high-value-added activities in the United States. But numerous voices are now concerned about the attraction of China for advanced electronics manufacturing. The President's Council of Advisors on Science and Technology supports policies that encourage R&D and advanced manufacturing in the United States. A January 2004 report notes that the computer and electronics sector is a leading employer in the United States, and ranks very high in terms of value-added. The report notes as well the rise of China as an electronics producer: . . . China's rise as a high tech manufacturer has caused increasing concerns. China is a large emerging market and its industrial and economic policies associated with expanding this sector are likely to continue indefinitely. This report also notes the variety of Chinese programs aimed at expanding the electronics sector, including numerous tax incentives, currency valuation policies, industrial parks, and employment incentives. The U.S. Semiconductor Industry Association shares this concern. SIA recently urged U.S. policy makers to keep chip fabrication in the United States by ``insuring that the U.S. remains an attractive locations for chip manufacturing. . . . If leading edge moves offshore because foreign governments have created more attractive investment environments, over time R&D facilities for manufacturing processes are likely to follow.'' SIA has documented the substantial contributions of U.S. semiconductor manufacture to the U.S. economy, in a number of reports, including as in the following illustration: The semiconductor industry, which is the largest value- added sector in the U.S. economy, provides high quality employment to hundreds of thousands of U.S. citizens and is projected to grow at a compound annual rate of fifteen percent for the next several years. The growth will create opportunities for new applications that will spawn new industries and it will ensure the continued vitality of many of the information technology industries. SIA officials emphasized the potential of China in particular to attract leading edge semiconductor manufacturing in recent testimony before the U.S.-China Economic and Security Review Commission: Semiconductors are the building blocks for American competitiveness in a broad range of high technology goods-- from computers to medical technology. A strong and vibrant semiconductor manufacturing industry is a key part of a healthy information technology ecosystem--it supports everything from research and development to a robust university capability in microelectronics. . . . the members of SIA also believe it is vital to retain leading edge manufacturing capability here in the United States. . . . China is growing into a major force in the information technology arena both as a customer and as a competitor. Given the size, growth, and potential of the Chinese market, it is essential that U.S. semiconductor firms have the chance to compete fairly. A new report prepared for the U.S.-China Economic and Security Review Commission finds that 1.5 million U.S. job opportunities have been lost as a result of the ballooning U.S. trade deficit with China. As noted at the outset in this paper, more than one-quarter of job losses during 2001-2003 were in electronics. China's higher-value electronics exports, along with other products that require more skilled labor and advanced technologies, are growing much more rapidly than are China's lower-value, labor-intensive exports. The report notes that China's exports to the United States reached $32 billion, a figure that corresponds to the entire U.S. trade deficit in advanced technology products. Indeed, the U.S. exports and imports of advanced technology products as a whole are in balance; however, the U.S. has a significant and rising trade deficit in such products with China. u.s. taxpayer subsidies to the chinese semiconductor producers are unjustified on any grounds As discussed above, the Chinese semiconductor industry does not need U.S.-taxpayer- supported financing. The Chinese industry benefits from advantageous labor costs, a dynamic internal market, a critical mass of component and finished goods production, and a multiplicity of Chinese government supports. The industry is literally booming, with investment flowing from a multitude of sources. SMIC in particular is a formidable competitor on a global scale. In addition, from a policy perspective, what is the U.S. interest in hastening the pace of expansion within the Chinese electronics sector? This expansion comes at considerable costs to U.S. industries. U.S. policy makers have in fact long recognized the value to the broader economy of maintaining high-value manufacturing and their associated R&D activities in the United States. This Administration has consistently been given this advice by its senior science and technology specialists. The economic reality may be that China's electronics industry will continue to strengthen, but that outcome should be market-driven. U.S. taxpayer subsidies to enhance advanced Chinese semiconductor manufacturing capabilities are unjustified on any grounds.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to join with the townspeople of Firth, Idaho, in celebrating the city's 100th anniversary. This important milestone has been reached through the hard work and tenacity of the early settlers as well as the foresight and spirit of today's citizens. The town of Firth officially came into existence in 1905 when Lorenzo Firth and his wife gave a plot of land for the town site and an acre for a one-room school house. The 4-room brick building which replaced that first school still stands on the original site, and the city has grown and prospered through the years. Some of the businesses which flourished in the early years of Firth included: a bank, barbershops, drug store, butcher shops and grocery stores, a lumberyard, harness shop, blacksmith shop, hardware store, theatre, grain mill, and potato warehouses. The original Firth Mill and Elevator continues to do business today. Collet's Bar and Grill is proud to have served the residents of Firth for over 75 years. Anthony's Auto and the Stop and Shop Grocery are early businesses still serving customers in the city. The community's economy has its base in agriculture. Grain, hay, potatoes, and cattle were raised on the farms around Firth. Early civic organizations in Firth were the Riverview Grange, the Lions club, and the Firth Homemakers club. Three religious groups were significant in the success of the City of Firth: the Swedish Baptist Church; the Lutheran Church (which held its early services in the Swedish language); and the Church of Jesus Christ of Latter-day Saints. Community leaders who have been committed to the success of the City of Firth include Rudolph E. ``Bud'' Rogers who served as mayor for 16 years and Sam Collet, a city councilman for almost 29 years. Credit goes to these civic minded individuals and others like them who were dedicated to making the City of Firth a great place to live, work, raise families, and educate children. Mr. Speaker, I would like to congratulate everyone who has been involved in the ``100 year celebration of the City of Firth''. I know many of the citizens of Firth and have enjoyed their friendship over the years. I wish Mayor Kress, the City of Firth, and all its citizens well as they continue toward their second hundred years.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to pay tribute to an important group of Federal Education Programs known as the TRIO programs. In short, TRIO programs help to support and prepare low income students for post high school education. TRIO is funded through the Labor, Health and Human Services Appropriations Bill that this body passed earlier today. I was proud to vote for this bill that included full funding for all TRIO programs. Two of the TRIO programs, Upward Bound and Talent Search had been slated for elimination in the Administration's Fiscal Year 2006 budget request. As the co-chairman of the Congressional TRIO Caucus and a member of the Appropriations Committee, I worked with my colleagues on that Committee to make sure that these programs were restored to Fiscal Year 2005 funding levels. I have received countless emails, letters and faxes from constituents in my district and other districts around the country urging me to spare Upward Bound and Talent Search. It is easy to understand why so many were concerned about the potential end of these two valuable TRIO programs that help over 3,500 low income Idaho students prepare for college. Parental income is one of the top predictors of whether or not a child will succeed in college or even go to college in the first place. Upward Bound and Talent Search help students exceed societal expectations and predictions by providing tutoring in college preparatory classes and help in navigating through the sometimes daunting maze of required forms and tests known as the college admission process. Like so many other members of this House who joined me in the effort to save TRIO, several of whom are TRIO graduates themselves, I fully understand the worth and importance of these programs, and I will do everything I can to ensure that these programs continue to receive funding for many years to come. While the cost of Upward Bound and Talent Search may seem an unnecessary expense to some, I would ask them to consider the long term savings in public assistance generated by graduates of TRIO who go on to earn college degrees and become productive, self sustaining citizens. Mr. Speaker, on behalf of the over 900,000 students currently enrolled in TRIO programs nationwide, I would like to thank and commend all those involved in the TRIO programs for a job well done. You are truly changing lives and making the impossible a reality for many of our Nation's students.

Mr. SIMPSON

Mr. SIMPSON. Mr. Chairman, there was an oversight in the No Child Left Behind Act, NCLB required teachers to meet their states highly qualified teacher requirement by the end of the 2005-2006 school year, about a year from now. Paraprofessionals were required to meet their requirements four years after enactment of NCLB. That would be January 8th of next year, halfway through the school year. Everyone agrees that it was an oversight and that these two dates should be aligned. I discussed various ways to fix this oversight with the Education and Workforce Committee Chairman Boehner and the staff, with the Deputy Secretary of the U.S. Department of Education Raymond Simon, and with the National Education Association. Last week I received a letter from Deputy Secretary Simon which reads in part ``to enable the Department to enforce these two requirements in an efficient, effective and coordinated manner, the Department will align the paraprofessional timeline with the teacher timeline.'' I will include the entire letter for the Record. I want to thank the Department of Education, Dep. Sec. Simon, chairman of the Education and Workforce Committee John Boehner and the staff, particularly, Sally Lovejoy and the National Education Association for working to resolve this oversight in a quick and efficient manner. U.S. Department of Education, June 15, 2005. Hon. Mike Simpson, House of Representatives, Washington, DC. Dear Congressman Simpson: Thank you for your recent questions about the time frame within which all paraprofessionals working in Title I-funded programs must meet certain qualifications. The relevant qualifications and time frame for paraprofessionals are detailed in section 1119( d) of the Elementary and Secondary Education Act (ESEA), as amended by the No Child Left Behind Act of 2001 (NCLB). In general, this section states that all Title I paraprofessionals hired before enactment of NCLB must demonstrate competency by no later than four years after the law's enactment, i.e., January 8. 2006. As you may know, the ESEA permits all veteran teachers of core academic subjects to have until the end of the 2005-2006 school year to demonstrate that they meet the requirements of NCLB; yet, as mentioned above. Title I paraprofessionals have only until January 8, 2006-the middle of the school year. We agree that it is unusual to have a deadline in the middle of the school year, and believe that the paraprofessional and highly qualified teacher provisions should be consistent. The Department will continue to be supportive of States, school districts and schools, in implementing these particular requirements. You have suggested that the timeline for Title I paraprofessionals be consistent with the timeline for teachers. Your suggestion is reasonable and practical. Therefore, to enable the Department to enforce these two requirements in an efficient, effective and coordinated manner. the Department will align the paraprofessional timeline with the teacher timeline. Thank you again for contacting me. Sincerely, Raymond Simon.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to recoginize the continuing role that the Government of Japan is playing to promote peace and democracy in Iraq and around the world. The determination and commitment of Japan, one of our Nation's most important allies, is particularly significant, especially at this time. We all read news stories about the difficulties and tensions that the United States has with our allies and even with coalition partners in Iraq, but we rarely read about the good news. As the House debates funding for our troops at home and abroad, I believe it is timely and important to highlight several recent developments in Japan's contributions to these efforts. iraq and afghanistan In April, the Government of Japan decided to extend for an additional 6 months, until November 1, 2005, the operation of Japan's Self Defense Forces (SDF) in support of ``Operation Enduring Freedom (OEF).'' As part of these operations, Japan has dispatched destroyers and supply ships to the Indian Ocean to provide at-sea refueling to U.S. and other allied naval vessels in the campaign. As of March 29, the Maritime SDF has completed more than 500 refueling operations for those naval vessels. As a result, Japan supplies about 30 percent of all fuel consumed by U.S. and allied naval vessels. Since last November, the Maritime SDF has begun to supply water and fuel for helicopters to the allied countries. Japan has also sent their SDF forces to Iraq. The operations have included ground troops, naval vessels and aircraft, all involved in reconstruction and humanitarian projects. At one point, the total number of Japanese SDF forces in the Iraq theater was approximately 1,000, including about 600 ground troops. These are historic operations, the first of their kind by Japan since the end of World War II. In addition, the Air SDF of Japan has provided airlift support to the U.S. Forces with C-130 transport aircraft and other planes. The Air SDF has completed more than 400 transport missions both in Japan and overseas in support of Operation Iraqi Freedom and Enduring Freedom. Further, Japan is the second largest donor in Iraq after the United States, with over $5 billion dollars for humanitarian, infrastructure and reconstruction projects. Japan also hosted a donor's conference last October, and continues to play an active role in the core group of donors. With respect to the reconstruction for Afghanistan, Japan has committed, in total, $1 billion of assistance, of which about $900 million have been disbursed so far. japan's efforts in the middle east peace process Japan is actively involved in advancing the Middle East peace process, including the provision of assistance to the Palestinians. To support Palestinians' peace efforts, Japan announced at the summit meeting between Prime Minister Koizumi and Mr. Abbas, the President of the Palestinian Interim Self-Government Authority, that it will provide additional assistance of approximately 100 million U.S. dollars to the Palestinians for the immediate future, in addition to the 90 million U.S. dollars it already provided in the last fiscal year. bilateral security cooperation It is significant that Secretary of State Rice and Japanese Foreign Minister Machimura have already held 3 bilateral meetings, the most recent being on May 2 here in Washington. Among the issues discussed were the creation of a Japan-U.S. strategic dialogue led by the two ministers, increased security cooperation, North Korea and United Nations Reform. During her visit to Tokyo in March, Secretary Rice cited Japan as a model for political and economic progress in all of East Asia and praised Japan's partnership with the United States in the global war on terror. north korea Japan continues to work closely with the United States on the issue of the North Korean nuclear crisis and has played an important and constructive role in the Six-Party talks. Japan supports an early resumption of these talks with an emphasis on the role of China. weapons of mass destruction (wmd) Japan is a strong supporter of the Non-Proliferation Treaty regime and has reached out to other countries, especially in Asia, to build a broader coalition against the spread of Weapons of Mass Destruction. Last fall, Japan hosted Australia, France and the United States (as well as 44 observer countries) in the first Proliferation Security Initiative (PSI) Maritime Interdiction exercise. The PSI is a global effort among governments to prevent the spread of weapons of mass destruction and other missiles. Japan again showed its commitment to the global war on terror by using its Maritime Self Defense Forces to counter proliferation in this multinational exercise. conclusion Mr. Chairman, these initiatives by Japan are but a few examples of the growing role that Japan is playing in the maintenance of international peace and security. And it is a powerful reminder of the importance and strength of the Japan-U.S. security relationship. I believe it is therefore appropriate that the House of Representatives recognize these actions and commend the Government of Japan.

Mr. SIMPSON

Mr. SIMPSON. Mr. Chairman, I appreciate the gentleman yielding me this time. First, let me talk about some of the comments that were just made and tell you that the world cost of production of sugar is about 16 cents, (not the 8.5 cents) is the world price. The world price is a dumped price. That means when a country overproduces sugar and cannot get enough money for it, it just dumps it on the market for whatever it can get. That is the dumped price. What happens, as the gentleman from Oregon said, this does not cost jobs in the United States. The reality is that if you look at Mexico and Canada, right now the price of sugar in the United States is around 22 cents. The price of sugar in Mexico is 23 cents. The price of sugar in Canada is about 21 cents. These companies are not moving to these foreign countries because of the price of sugar. The reason they are moving there is the same reason they are moving to Mexico, where Mexico will allow a company to move there, build their facility, employ their people, buy world-dumped-price sugar, and then sell it back into the United States but not allow it to be sold into Mexico to compete with their domestic sugar supply. That is what we are dealing with. We would allow free and fairer trade across the country, free trade and fairer trade in sugar, but this is not it. I urge my colleagues to reject this amendment.

Mr. SIMPSON

Mr. SIMPSON. Mr. Chairman, this debate should be about one of public lands and wildlife management and nothing more. And I will be the first to say that I do not like to see these wild horses taken off the range, but at the same time they have to be properly managed. Over the years, we in Congress and those in State governments have created a variety of methods to help control animal populations, whether it is placing a species under the protection of the Endangered Species Act when the numbers are dwindling or allowing increasing hunting for various species when the numbers of the species are too great. Wild horses should be no different. We must remember that wild horses have virtually no natural predators and the herd sizes can double every 5 years. If these herds are not managed, wild horse numbers will increase at alarming rates. Left unmanaged wild horses not only degrade our public lands but they also create conditions where many times these horses would be unable to survive on their own. In order to be good stewards of our public lands, these animals must be managed, and the only way to manage these herds is to take some of these animals off the range. The primary method for controlling horse populations has of course been adoption. But, unfortunately, adoptions have not kept up with our expanding wild horse and burro herds. Mr. Chairman, I urge Members to oppose this amendment and support our public lands.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to pay tribute to a dedicated group of sportsmen, merchants and citizens who have reached an important milestone as they celebrate the 50th year of the Free Fisherman's Breakfast. On May 27, 2005, from 6 a.m. until 2 p.m., volunteers will serve pancakes, sausage, bacon and eggs, hash browns, coffee, milk and juice to more than 5,000 people at Clyde Keefer Memorial Park in St. Anthony, Idaho. Volunteers join together each year to continue the tradition which began near the opening of fishing season in May of 1955. The St. Anthony Chamber of Commerce and the Sportsmen's Association came up with the idea to try to draw fishermen into town on their way to their favorite fishing hole. The idea grew from just coffee and doughnuts to a full free breakfast, served faithfully each year despite rain, wind, snow and floods. Informational booths were added in the park for guests to enjoy as they wait in line to be served. Many local, state, and national elected officials take advantage of the opportunity to visit with friends and supporters. Each year fishermen come from all over the state, as well as adjoining states, to renew old friendships and make new ones. An outstanding community member is honored each year. Mr. Speaker, I would like to congratulate everyone who has been involved in the ``Free Fisherman's Breakfast'' over the years and join them this month as they commemorate its 50th anniversary. I have enjoyed socializing at this event in the past and will be looking forward to it in the future. I wish the City of St. Anthony well as they continue this great hometown tradition.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to honor a friend and colleague who will retire on June 10 after years of service to the federal government and the Idaho National Laboratory. For the last ten years, Ray Marble has represented the Idaho National Laboratory in Washington DC. Before that, Ray had a distinguished career at the Federal Energy Regulatory Commission, the Department of Energy, the Energy Research Development Agency and the U.S. House of Representatives. As a staff member, Ray worked for three Members of Congress, J. Kenneth Robinson, John ''Jack'' O. Marsh, and Carlton Sickles. Ray Marble is a consummate professional who builds goodwill and trust wherever he goes. Ray is a gentleman known all over Washington for his kindness and tact. As a Washington representative of the Idaho National Laboratory (lNL), Ray has helped keep me, my staff, and the rest of the Idaho congressional delegation fully informed of events and issues at the lab. Ray always provides crisp, succinct information delivered with insight and perspective--and he is a pretty darn good golfer to boot. The INL will lose a great advocate and asset when Ray Marble retires. Beyond the work relationship that many of us have with Ray, we also know him as a friend. Ray is uniquely gifted in his ability to connect with people on a personal level. He is genuinely concerned about the welfare of the people with whom he works and, in return, people around Washington are genuinely interested in him. I am proud to say that Ray has been a friend of mine over the past six years--and I know several of my colleagues feel the same way. I want to wish Ray and his wife Martha all of the best as they head off to North Carolina for new adventures and new challenges. I know a few rounds of golf are on Ray's to-do list and I hope he enjoys his well-deserved retirement.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to pay tribute to a dedicated group of Filer Elementary School students, teachers, parents and volunteers who will be participating in a fifty mile walk between the Malad Gorge State Park and Filer, Idaho. Each day this week, the fourth grade class of Filer Elementary School will walk 10 miles along the Snake River Canyon, following the same path crossed over 150 years ago by settlers migrating west on the Oregon trail. These students have been training for months for this big week where they will literally be taking school out on the road. By participating in a physical challenge that is attainable through goal setting, hard work and perseverance, these students redefine their personal potential far beyond what they once thought possible. While the students journey through Southern Idaho, they will learn about and identify the large melon shaped boulders along the Snake River Canyon that were formed 15,000 years ago. They will also learn about the hardships faced by the first settlers in whose footsteps they are following. Much like Lewis and Clark, every evening the students will record their impressions in a journal. These journals become a reflection of the transformation that takes place within these children during this memorable week. Over the past 10 years, more than 1,000 students, teachers, parents and volunteers have completed the ``50 Mile Big Walk'' The students come to understand that if you can walk 50 miles when you are in fourth grade, there isn't anything in life you can't do if you set a goal, work hard and help others along the way. Mr. Speaker, I would like to congratulate everyone involved in the ``50 Mile Big Walk'' and commend them on their hard work and dedication. To the walkers, I want you to know that I will be thinking of you and wishing you well every step of the way. Thank you, Filer Elementary School for being an inspiration to us all.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to honor the Post Register Newspaper for providing 125 years of service to eastern Idaho. I'm proud to recognize and congratulate the Post Register for this achievement. The Post Register can trace its roots to the founding of the Idaho Register in Blackfoot, Idaho in 1880. J. Robb Brady, son of former Idaho Governor and Senator James H. Brady, purchased the Daily Post in Idaho Falls in 1925. In 1931, The Post and Times-Register merged to create the Post-Register. The Post Register is a longstanding corporate citizen committed to following its stated mission of being fair, ethical, accurate and courageous. The Post Register covers an area that stretches the miles from the Salmon River area, east into Montana, into western Wyoming including Jackson and south to Blackfoot, Idaho. Citizens who reside within these areas have benefited from the Post Register's 125 years of community journalism. The Post Register is a newspaper that moves quickly to adjust to readers needs. In 1995, the first online pages were posted at www.postregister.com. In 1997, the newspaper hit another milestone when it changed to morning publication and added a Saturday edition. Currently, the Post Register is owned by its employees and the descendants of James H. and J. Robb Brady. The Post Register's values are to serve ``this special place, our home, now and in future generations,'' and they have held true to these values for the last 125 years. To the Post Register and all their employees, I congratulate you on such a successful business and look forward to the years to come.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I join my colleagues in expressing my grave concern over China's proposed anti-secession law. This highly provocative law greatly increases the risk of a military confrontation across the Taiwan Strait. Specifically, it assumes China and Taiwan are now unified, and it gives China the right to punish anyone expressing separatist sentiments or engaging in separatist activities. Ultimately, China may use force to push for unification with Taiwan, a scenario we all must work to prevent. This law would have serious consequences for relations between China and Taiwan, and it would threaten stability in the region. In my district, Idaho State University has developed a unique program, the only program of its kind in the United States, to provide a language and cultural education program for junior diplomatic officers in the Ministry of Foreign Affairs. I have spent time discussing the American political system and current events in Taiwan with the junior diplomats, and they have repeatedly expressed their country's desire to avoid confrontation with China. These students look to the United States as a model of freedom and democracy. Mr. Speaker, we do not need military confrontation in the Taiwan Strait now or anytime in the future. I urge the Chinese leaders to reject the anti-secession law, and I hope the international community will join us in voicing their disapproval of this provocative and dangerous law. Inaction by the United States will only serve to encourage China to escalate its political rhetoric and belligerent action against the democratic Taiwan.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to thank Dr. Paul Kearns of Idaho Falls for his service as Laboratory Director of the Idaho National Engineering and Environmental Laboratory (INEEL). On February 1, Paul's tenure as Laboratory Director will come to an end and I want to thank Paul and his wife Lynn for their contribution to Idaho. Paul has guided the INEEL through a time of great change and challenge and he has been a true friend and champion of the lab and its employees. When Paul took over as INEEL Laboratory Director, he reached out to employees, DOE and the Idaho congressional delegation to improve communication and understanding. That effort has helped the INEEL grow and prosper under Paul's leadership. Under Dr. Kearns' guidance, the research and development programs of the INEEL have experienced significant growth and so has the recognition of the lab's accomplishments. The growth in R&D programs coupled with a sterling safety and performance record give the new Idaho National Laboratory a strong foundation for future growth and success. Paul has been a respected leader in Idaho serving as a member of Governor Kempthorne's Science and Technology Advisory Council and a board member of the Idaho Nature Conservancy. Paul and the Bechtel team have been very good for Idaho and the INEEL and while their association with the lab will soon end, we want to thank them for their efforts and support. I want to wish Paul and Lynn all the best as they embark on new challenges and opportunities.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, I rise today to pay tribute to Mr. Darryl Kehrer, Staff Director for the Subcommittee on Benefits of the Veterans' Affairs Committee, who is retiring after 37 years, 33 of which were devoted of public service to our nation's veterans. Darryl's distinguished career in public service began with active duty in the United States Air Force from 1966-1970, after which he received an Honorable Discharge as Staff Sergeant. Since then, he has served with distinction at the Department of Veterans Affairs, the United States Senate, and as Staff Director of the Subcommittee on Benefits of the Committee on Veterans' Affairs at the United States House of Representatives. Furthermore, he served as Executive Director of the Congressional Veterans Claims Adjudication Commission, and Staff Director of the Panel on Veterans' Benefits for the Congressional Commission on Servicemembers and Veterans Transition Assistance. Darryl has dedicated his career to improving the lives of our nation's veterans and to provide them with the very best with respect to benefits and services in their transition to civilian life. He has made significant contributions to the development and enactment of veterans' legislation to improve education, employment, and transition assistance, to name just a few of his accomplishments. As the Chairman of the Veterans Benefits Subcommittee during the 107th Congress, Darryl's strong work ethic and commitment to the issues was unwavering. He worked tirelessly with me to enact the Jobs for Veterans Act (PL 107-288), and since then he has continued his work with the Department of Labor to ensure the legislation is reaching veterans and helping them make the transition from military service to civilian employment. His comments and insight into issues affecting veterans was invaluable to me when I served as the Chairman and continues to be today. Darryl has been a guest instructor at the University of Missouri and the Harry S Truman Library, the John Stennis Institute of Government at Mississippi State University, West Potomac and Annandale High Schools in Virginia, the United States Military Academy, and the United States Air Force Academy. Using the Montgomery GI Bill as an example of how legislation is made, he developed a case study on the enactment of this significant piece of veterans legislation, providing students with a hands-on approach to law-making. He has accompanied me to both West Point and the Air Force Academy, where we visited with instructors and spent time with the cadets. At the Air Force Academy, we did a joint presentation to students regarding the Member and staff perspectives of the U.S. Congress. His success as a guest instructor is clearly demonstrated by how frequently these renowned institutions ask him to return. Darryl's passions are teaching, mentoring, and baseball. He has spent the past fifteen years volunteering for the Annandale Little League, and the League established an ongoing scholarship in his name. Called the ``Kehrer Cup,'' it is awarded to the youngster who personifies the values of Little League Baseball and includes a $550 scholarship to the Little League Baseball International Summer Camp. He also received the Ellie Doyle Award for his exemplary partnership with the Fairfax County government in youth sports activities. A self-proclaimed ``baseball fanatic,'' Darryl has used his passion to instill the love of the game and the ideals of sportsmanship in children and young adults. Mr. Speaker, throughout his career as a public servant and volunteer in the community, Darryl has exemplified the highest ideals of family, community, and public service. With his retirement, we are losing an exemplary public servant and true friend of our nation's veterans. Thank you, Darryl, for your many years of dedicated service to our nation.

Mr. SIMPSON

Mr. SIMPSON. Mr. Speaker, fundamentally, hiring former servicemembers is a good business decision. They are a competitive business asset and a unique national resource. They represent the very best of commitment, reliability, and resolve. In the 107th Congress, President Bush signed into law the Jobs for Veterans Act (Public Law 107-288), which I authored with my friend Silvestre Reyes. It established the President's National Hire Veterans Committee (NHVC) with a mission to reach out to employers and make them fully aware of the skills and attributes veterans offer to the civilian workforce. As we fight the war on terrorism, America's sons and daughters continue selflessly to volunteer for military service and then join the civilian workforce better prepared to make a significant contribution to our private economy. The NHVC expires on December 31, 2005. Since its genesis in 2003, the President's National Hire Veterans Committee has initiated a nationwide marketing campaign which has brought more employers seeking veterans to the Department of Labor's One-Stop Career Centers. NHVC launched a sophisticated website, www.hirevetsfirst.gov that helps employers and veterans while embracing the existing workforce development systems. Prior to this website there was no single national location of which I am aware for the either the employer or the veteran to find relevant information about each other. NHVC initiated a unique advertising campaign to attract human resource specialists, business executives, and public sector employers. These are highly effective ads conveying a message of the value that veterans bring to the workplace. To guide employers to the website, a wrap-around cover ``outsert'' program, mailed to selected executive readers of Business Week, contains interviews with four business leaders including Robert Lutz, Vice Chairman of General Motors; Jackson Moore, CEO-designate of Regions Financial Corporation; and Bob Nardelli CEO of Home Depot. NHVC has also been a catalyst for local and statewide initiatives to support jobs for veterans. NHVC worked with the governors of many states, including my home state of Idaho, to declare Hire Vets First month. The Committee is working directly with employers throughout America, and in a cooperative venture with NHVC, Home Depot hired over 13,000 veterans in 2004. Mr. Speaker, we must continue to convey the message of the competitive value and bottom-line results that veterans add to our economy. We must ensure that we as a nation properly leverage in our domestic economy the investment of over $17 billion a year in training our military. But more importantly, we must continue to commend the virtues of our veterans who have the ability to learn new skills, and a propensity for teamwork, self discipline, loyalty and many other characteristics that translate into productivity, innovation, and leadership. Hiring former servicemembers is good for business, it's good for veterans, and it's good for America. I urge my colleagues to support H.R. XXXX, providing for a 3-year extension of the President's National Hire Veterans Committee.