June 2, 1975 CONGRESSIONAL RECORD- HOUSE

cover these expenditures in two ways.

First, we negotiated with the Federal

Republic of Germany (FRG) an Offset

Agreement which had a total value of

$2.218 billion over the 1974-75 time

period. The fiscal year 1974 portion of

the agreement has come to $1.150 billion.

Second, our other NATO Allies have

placed substantial military procurement

In the U.S. They have been able to identify $1.016 billion in such procurement,

of which $917 million can at this time be

applied against fiscal year 1974 expenditures. The NATO Allies and the NATO

Economic Directorate deserve our special

recognition for their cooperation in

establishing a liaison mechanism for

identifying these purchases. Appendix A

provides an accounting of our compli- ance with the provisions of the Amendment.

The Jackson-Nunn Amendment also

called upon our Allies to assist the U.S.

in meeting some of the added budgetary

costs that result from maintaining our

forces in Europe rather than in the continental United States. The major form

of this budgetary support is contained in

the two-year U.S.-FRG Offset Agreement. The agreement includes approximately $224 million to rehabilitate badly

deteriorated barracks and other troop

facilities used by American military personnel in the FRG. The FRG also agrees

to absorb about $8 million of real estate

taxes and landing fees directly related

to U.S. forces in Germany. Finally, very

considerable budgetary relief is implicit

in the FRG agreement to purchase DM

2,250 million in special U.S. Treasury securities at a concessional interest rate of

2.5 percent. The interest rate which Germany could have obtained through investment of these funds in marketable

U.S. Treasury securities would, of course,

have been much higher. The purchase of

securities made by the FRG pursuant to

the agreement were made at times when

the market was paying just under eight

percent interest. As a consequence, the

PRG will have foregone approximately

$343 million in interest over the life of

these securities. Essentially this represents a budgetary gain to the U.S.

A final provision of the Amendment

requires that we seek to reduce the

amount paid by the U.S. to support

NATO's Infrastructure Program. NATO

recently agreed to a new five-year program (CY 1975-79) totaling $1.35 billion.

The Allies have agreed to reduce the U.S.

percentage from the current official level

of 29.67 percent to 27.23 percent. The new program also includes a special category of projects totaling $98 million

which benefit only American forces and

which would normally have been funded

in the U.S. budget. When this special

category is considered, the effective U.S.

share is approximately 21 percent. Likewise, the U.S. share of funding for the

Common European Pipeline deficit has

been reduced from 36 percent to 25

percent.

The Amendment specifies that 221/2

months (July 1, 1973-May 16, 1975) of

Allied balance of payments transactions

can be applied against the FY 1974 deficit. The balance of payments data we

have used have been based on only the

first 12 months of this period. We do not

yet have complete data on Allied procurement expenditures during the last

101/2 months of the statutory period.

However, assuming that Allied expenditures in Foreign Military Sales (FMS)

and commercial accounts remain at

about the same levels as in FY 1974,

there would be available an additional

$1.3 billion to offset our FY 1974 expenditures.

It should be noted that the Allied financial transactions reported here do

not represent the total financial burden

incurred by the Allies in support of U.S.

forces in Europe. Our Allies absorb many

of our troop-related operation and maintenance costs for facilities, building and

repairing roads, and other payments

which have a total value of several hundred million dollars a year.

A good economic argument can be

made that some of our balance of payments expenditures would have occurred

whether or not our troops were in Europe, and hence should not have been

charged against the NATO balance of

payments account. For example, the Department of Defense purchased approximately $137 million of petroleum, oil,

and lubricants (POL) in Europe during

FY 1974, mostly for our Sixth Fleet operations. The great majority of these

products were purchased from the

Middle East. However, if the fleet had

been brought home, its shift to U.S.

POL resources would have forced other

U.S. consumers to purchase their POL

requirements from abroad. Thus, the

impact on our balance of payments expenditures would have remained unchanged.

We should also recognize that, even If

our troops were returned to the continental U.S., there would still be personnel-related expenditures for European goods and services. These personnel

would continue to purchase some European goods. Also, we should not

overlook the fact that some of our

military-related balance of payments

expenditures in Europe generate Allied

or third nation purchases in the U.S.-

both military and commercial.

Finally, we must consider that more

than $300 million of the U.S. defense expenditures in Europe merely reflect the

effect of dollar depreciation. This depreciation was a contributing factor to

the substantial improvement in the U.S.

trade balance, but it has made relatively

more expensive the goods and services

purchased by our military forces in

Europe.

GERALD R. FORD.

THE WHITE HOUSE, May 27, 1975.

COMMUNICATION FROM THE

CLERK OF THE HOUSE

The SPEAKER laid before the House

the following communication from the

Clerk of the House of Representatives:

WASHINGTON, D.C.,

May 27,1975. Hon. CARL ALBERT,

The Speaker,

House of Representatives.

DEAR MR. SPEAKER: I have the honor to

transmit herewith a sealed envelope from the

White House, received in the Clerk's Office

at 12:30 p.m. on Tuesday, May 27, 1975, and

said to contain a message from the President wherein he transmits the Annual Report of the Administration on Aging for the

fiscal year 1974.

With kind regards, I am,

Sincerely,

W. PAT JENNINGS,

Clerk, House of Representatives.

By BENJAMIN J. GUrHa.

ANNUAL REPORT ON AGING, 1974,

UNDER OLDER AMERICANS ACT

AMENDMENTS-MESSAGE FROM

THE PRESIDENT OF THE UNITED

STATES (H. DOC. NO. 94-167)

The SPEAKER laid before the House

the following message from the President

of the United States; which was read

and, together with the accompanying

papers, referred to the Committee on

Education and Labor and ordered to be

printed:

To the Congress of the United States:

Section 208 of the 1973 Amendments

to the Older Americans Act (Public Law

89-73) provides that the Commissioner

on Aging shall prepare and submit to the

President for transmittal to the Congress

a full and complete report on the activities carried out under this Act, not later

than one hundred and twenty days after

the close of each fiscal year.

Secretary Weinberger has forwarded

the Annual Report of the Administration

on Aging for the fiscal year 1974 to me,

and I am pleased to transmit this document to the Congress.

GERALD R. FORD.

THE WHITE HOUSE, May 27, 1975.

COMMUNICATION FROM THE CLERK

OF THE HOUSE

The SPEAKER laid before the House

the following communication from the

Clerk of the House of Representatives:

Washington, D.C., May 28, 1975.

Hon. CARL ALBERT,

The Speaker,

House of Representatives.

DEAR MR. SPEAKER: I have the honor to

transmit herewith a sealed envelope from the

White House, received in the Clerk's Office

at 4:55 P.M. on Thursday, May 28, 1975, and

said to contain a veto message from the President on H.R. 5357, An Act to authorize

appropriations to the Secretary of Commerce

for the promotion of tourist travel.

With kind regards, I am Sincerely,

W. PAT JENNINGS,

Clerk, House of Representatives.

By W. RAYMOND COLLEY,

Deputy Clerk.

AUTHORIZING APPROPRIATIONS

TO THE SECRETARY OF COMMERCE FOR THE PROMOTION

OF TOURIST TRAVEL-VETO MESSAGE FROM THE PRESIDENT OF

THE UNITED STATES (H. DOC.

NO. 94-168)

The SPEAKER laid before the House

the following veto message from the

President of the United States:

To the House of Representatives:

I am returning herewith, without my

approval, H.R. 5357, which would au16239
CONGRESSIONAL RECORD- HOUSE June 2, 1975

thorize appropriations totalling $98,-

125,000 to the Secretary of Commerce

for the promotion of tourist travel.

This bill would reinstitute in the Department of Commerce a domestic tourism program to encourage Americans to

travel within the United States. It also

would authorize appropriations totalling $90 million for the period July 1, 1976

through September 30, 1979, for con- tinuation and expansion of the current

program of the United States Travel

Service to promote and facilitate foreign

tourism In the United States.

fly Administration proposed an ex- tension of the existing tourism program

through fiscal year 1979 at an annual

authorization level of $15 million to en- courage foreign visitors to the United

States. It opposed the reinstatement of a domestic tourism program, which

would be unnecessary.

The promotion and management of

domestic tourism should remain the re- sponsibility of the private sector, especially the accommodation and transpor- tation industries, and of state and local

governments. Each of the fifty States

has its own tourist promotion agency. I

find no justification for the Federal

Government taking on this role.

Moreover, the amounts authorized in

the bill for the Travel Service's existing program are excessive, almost doubling the adequate amounts proposed by

my Administration for the promotion of

foreign travel to this country.

I find it necessary, therefore, to withhold my approval from a bill which would

create an unnecessary new Federal program and unduly enlarge an existing

program.

GERALD R. FORD.

THE WHITE HOUSE, May 28, 1975.

The SPEAKER. The objections of the

President will be spread at large upon

the Journal and the message and bill

will be printed as a House document.

The question is, Will the House, on

reconsideration, pass the bill, the objections of the President to the contrary

not withstanding?

Mr. ROONEY. Mr. Speaker, I ask

unanimous consent that further consideration of the veto message from the

President on the bill (H.R. 5357) be postponed until Tuesday, June 24, 1975.

The SPEAKER. Is there objection to

the request of the gentleman from Pennsylvania?

There was no objection.

COMMUNICATION FROM THE

CLERK OF THE HOUSE

The SPEAKER laid before the House

the following communication from the

Clerk of the House of Representatives:

May 29, 1975. Hion. CARL ALBERT,

The Speaker,

House of Representatives.

DEAR MR. SPEARER: I have the honor to

transmit herewith a sealed envelope from

the White House, received in the Clerk's

Office at 3:00 p.m. on Thursday, May 29, 1975,

and said to contain a veto message from the

the President on H.R. 4481, An Act making

emergency employment appropriations for

the fiscal year ending June 30, 1975, and for

other purposes.

With kind regards, I am,

Sincerely,

W. PAT JENNINGs,

Clerk, House of Representatives.

By BENJAMIN J. GuTHRM

EMERGENCY EMPLOYMENT APPROPRIATION ACT-VETO MESSAGE FROM THE PRESIDENT OF

THE UNITED STATES (H. DOC.

NO. 94-169)

The SPEAKER laid before the House

the following veto message from the

President of the United States:

To the House of Representatives:

I return without my approval, H.R.

4481, the Emergency Employment Appropriation Act.

Earlier this year, I asked the Congress

for legislation to deal with the Nation's

most immediate employment problems

through an extension of public service

jobs and a program of summer youth

employment.

The Congress has taken this simple,

straightforward and specific proposal

and turned it into a bill containing a host of provisions of questionable value.

This bill, as presented to me, is not an effective response to the unemployment problem. It would exacerbate both

budgetary and economic pressures, and

its chief impact would be felt long after our current unemployment problems are expected to subside.

The bill authorizes spending of $3.3

billion above my budget requests. Almost

half of this added spending would occur in fiscal 1976 and an appreciable amount

of spending would continue in calendar

year 1977. Economic recovery is expected

to be well underway by the end of 1975,

and the accelerative influences of this

bill would come much too late to give

impetus to this recovery. Instead, those

influences would run the risk of contributing to a new round of inflation later

on.

In my address to the Nation on March 29, announcing my decision to

sign the Tax Reduction Act, I stressed

the need to keep the 1976 deficit below

$60 billion. This bill is one of many being

considered by the Congress that, com- bined, would increase the deficit to $100

billion or more. Already, Congressional

actions and inactions have added $7.3

billion to the 1975 deficit and $4.4 billion

to the 1976 deficit.

Such an increase in the Federal budget

deficit would lead to an increase in Federal borrowing from private financial

markets. These heavy Federal demands

for capital could deprive business firms

of funds needed for modernization and

expansion of capacity.

Thus, H.R. 4481 would contribute to

choking off the very economic growth it

is intended to stimulate.

To help overcome the recession and

high unemployment, I have proposed,

and the Congress has enacted, a major

tax cut. I have also proposed an extension of unemployment compensation

benefits, together with increases, which are included in this bill for public service

jobs and summer employment.

Further stimulus would hurt more than it would help our economy in the

long run. H.R. 4481 provides for too much

stimulus, too late, and I must therefore

veto the bill.

The need remains, however, for a bill

that will provide the funds I recom- mended for immediate and temporary

employment through the public sector

and summer youth jobs. Since student summer vacations are close at hand, I

urge the Congress to pass such a bill as quickly as possible.

GERALD R. FORD.

THE WHITE HOUSE, May 28, 1975.

The SPEAKER. The objections of the

President will be spread at large upon the

Journal, and the message and bill will be

printed as a House document.

The question is, Will the House, on reconsideration, pass the bill, the objections of the President to the contrary

notwithstanding?

MOTION OFFERED BY MR. MAHON

Mr. MAHON. Mr. Speaker, I move that

further consideration of the veto mes- sage from the President on the bill H.R.

4481 be postponed until Wednesday,

June 4, 1975.

The SPEAKER. The question is on the motion offered by the gentleman

from Texas (Mr. MAHON).

The motion was agreed to.

A motion to reconsider was laid on the table.

CALL OF THE HOUSE

Mr. MONTGOMERY. Mr. Speaker, I

make the point of order that a quorum

is not present.

The SPEAKER. Evidently a quorum is

not present.

Mr. McFALL. Mr. Speaker, I move a

call of the House.

A call of the House was ordered.

The call was taken by electronic device, and the following Members failed

to respond:

[Roll No. 247]

Abdnor Dodd McEwen

Alexander du Pont McKinney

Ambro Eckhardt Macdonald

Andrews, N.C. Eilberg Madigan

Annunzio Erlenborn Mathis

Aspin Esch Metcalfe

Bafalis Eshleman Meyner

Barrett Fish Mezvinsky

Baucus Fithian Michel

Beard, Tenn. Foley Milford

Bell Ford, Tenn. Mills

Biaggi Frey Minish

Bingham Fulton Mink

Boggs Goodling Mollohan

Boland Gradison Mottl

Bowen Green Murphy, nl.

Breaux Hammer- Murphy, N.Y.

Breckinridge schmidt Myers, Pa.

Burton, John Hannaford Nichols

Burton, Phillip Harrington Obey

Chisholm Harris O'Neill

Clausen, Hdbert Pattison, N.Y.

Don H. Henderson Pettis

Cleveland Hillis Pike

Cochran Holland Railsback

Collins, Ill. Holt Randall

Conte Holtzman Roberts

Conyers Howard Roe

Cotter Jacobs Roncalto

Coughlin Jones, Ala. Rostenkowski

Crane Jones, N.C. Rousselot

Daniels, N.J. Jones, Tenn. Ruppe

Delaney Kazen St Germain

Dent Kemp Scheuer

Derrick Keys Shipley

Derwinski Leggett Slack

Dickinson Lent Snyder

16240