865 



(Mr. Ketchum asked and was given permission to revise and extend 

 his remarks.) 



Mr. Ketchuim. INIr. Chairman, I shall not use the total 5 minutes. 



We discussed this during the general debate on this bill. The fact 

 that Federal funds would be used to guarantee the payment of inter- 

 est on and the principal balance of bonds or other evidences of 

 indebtedness issued by a coastal State or unit of general purpose local 

 government for the purposes specified in subsection (b) of this section 

 is repugnant to me, and I hope that it is repugnant to the ]\Iembers. 

 This is so reminiscent — despite the fact that some might say we are 

 talking about apples and oranges— of something that has just occurred 

 in this Congress : The bailout of New York City. 



Mr. Chairman, there is absolutely no reason for this provision to be 

 in this bill, desipite the fact that it is my understanding that it is in 

 the Senate version. I am astounded that anyone who was objecting to 

 the New York bailout could possibly support this provision in this bilk 



Mr. Du PoxT. Mr. Chairman, I rise in opposition to the amendment. 



(Mr. du Pont asked and was given pennission to revise and extend 

 his remarks.) 



[INIr. du Pont addressed the Committee. His remarks will appear 

 hereafter in the Extensions of Remarks.] 



Mr. ]MrRPHY of New York. ]\Ir Chairman, I move to strike the 

 requisite number of words, and I rise in opposition to the amendment. 



(Mr. MuBPHY of New York asked and was given permission to 

 revise and extend his remarks.) 



INIr. INluRPHY of New York. Mr. Chairman, I was a little perplexed 

 by the gentleman's analogy vis-a-vis this bond section and the recent 

 jiroblems of New York. He used the term "bailout." I must say that 

 tliey are using a thimble here to help bail out New York. 



But I would like to refer to pages 66 and 67 of the report. These 

 pages clearly spell out the ground rules and conditions. They stipulate 

 clearly that no bond could be guaranteed unless the Secretary deter- 

 mines that — 



The State or local government could not borrow sufficient revenues on reason- 

 able terms and conditions without the guarantee. 



The bond issued must provide for a complete amortization period within thirty 

 years. 



The total principal amount of any individual bond to be guaranteed cannot 

 exceed $20 million. 



We go down cliapter and verse and carefully lock in the entire bond- 

 ing provisions. That is why we incorporated the two amendments 

 proposed by the Committee on Appropriations. 



We further codify what is a model bond guarantee program. We 

 are limited to public services in the use of these bonds. It is only in 

 OCS-related activities. 



Mr. Chairman, this landing section is necessary to the bilk It is 

 necessary to lielp retrieve $400 billion worth of oil, and it goes only 

 to OCS areas. This bonding portion is one of the vital sections of 

 the bill, and I certainly hope my colleagues will help defeat this 

 amendment. 



Mr. FoRSYTiiE. Mr. Chairman, I move to strike the requisite number 

 of words. 



