All three witnesses testified in favor of H.J. Res. 355, a resolution which would prohibit normalization of relations with Cuba until the outstanding claims of U.S. businessmen are settled.

Congressman Ireland stated that in order to preserve respect for property rights and establish a precedent for dealing with claims of other nations, agreement of payment in full plus interest should preclude normalization proceedings.

Mr. Hutton testified that if we fail to demand reimbursement in full before normalization negotiations, U.S. bargaining position would be weakened, investment abroad would suffer, and the basic principle of law and order disregarded.

Mr. Cypher cited that the failure to demand satisfaction for losses sustained, will create the impression that other nations can confiscate private property without repercussion.

Additional hearings are anticipated in 1980 on the subject of outstanding claims against Cuba.

7. North American Energy Cooperation.-Joint public hearings on North American Energy Cooperation by the Subcommittees on International Economic Policy and Trade; International Organizations and Inter-American Affairs were held on September 27, 1979. Witnesses addressed consideration of H. Con. Res. 124, a resolution prescribing an energy summit between the United States, Canada and Mexico, and the options available for developing an overland transportation system for oil between the United States and Canada.

Witnesses appearing on September 27 included: Honorable Toby Roth, Representative from Wisconsin; Honorable Robert Dole, Senator from Kansas; Honorable Robert Lagomarsino, Representative from California; Honorable Arlan Stangeland, Representative from Minnesota; Honorable Donald Munro, Member of Parliament, Canada; Honorable Gerald Rosen, Director, Office of Fuels and Energy, - Bureau of Economic and Business Affairs, Department of State; Mr. Daniel P. Beard, Deputy Assistant Secretary of Land and Water Resources, Department of the Interior and Mr. John Treat, Director, Office of Producing Nations, International Affairs Bureau, Department of Energy.

Representative Roth testified that "reports suggest that Mexico may have the largest oil resources in the world, therefore, the U.S. as a Government, should become totally involved and aware of all aspects of this process," and our policy should promote "fair and equitable business and trade arrangements with Mexico."

Senator Dole stated that domestic problems in Mexico must be tended to first, before any agreements can be made on energy dealings. With this, a "cornerstone" can be laid for dealing with all Latin America in a new manner. U.S. dominance in trade areas and the need for expanding relations concerning energy matters are prominent concerns in U.S.-Canada relations. Our three nations must arrange a time to collectively sit down and discuss pressing issues and hopefully form a consensus for their ultimate solution.

Representative Lagomarsino testified that in order to decrease our dependency on foreign oil sources, we must increase cooperation with E our neighbors, namely, Mexico and Canada. To achieve this, however, we must not impose our wishes on them. We cannot expect "Mexican

oil to serve as a replacement for OPEC," and therefore, in order to create reciprocal relations, we must offer the Mexicans something in

return.

Representative Stangeland cited the fact that by improving trade and economic relations between the three nations, many issues, including, energy policies, as well as more efficient transport measures, technological transfers, and non-energy issues, may be discussed. However, the leaders of all three nations must take into account each other's needs and specific problems while attempting to reach satisfactory solutions.

The Honorable Donald Munro testified that communication patterns with Canada have progressed positively on the consultative level, but negatively on the legislative level. This is due to the differing types of government adhered to by each nation. Of the several options open for transportation of oil between U.S.-Canada, most acceptable would be the branching off of the Alaskan Pipeline, an overland route, parallel to the Northern Gas Pipeline, and feeding into existing pipelines reaching markets at which Northern Tier route is aiming.

Mr. Rosen testified that it's the administration's belief that there is no need for trilateral meetings. Consultative mechanisms between the three nations are sufficient.

Mr. Beard stated that Title V, "Crude Oil Transportation Systems" includes prepared applications for west-to-east systems "to supply crude oil for the northern tier and inland states." The report includes recommendations from Federal agencies, State and local governments, as well as the public. The report is then referred to the President. who, after consulting with other energy agencies, will submit his approval of a system, including modifications and alterations.

Mr. Treat testified that a west-to-east pipeline would best suit this country's oil problems, for many reasons, including: (a) it will serve to alleviate the surplus of oil on the west coast; (b) it has the least potential for regulatory delay of all projects considered, as it is not subject to the uncertainties of international negotiations, as well as many other considerations.

Additional hearings on North American Energy Cooperation are anticipated for 1980. The hearings were published in December 1979, as "North American Energy Cooperation, Part I."

Other Activities

1. Study Missions:

(a) Caribbean Nations: Assessment of Conditions and U.S. Influence, Special Study Mission to Jamaica, the Dominican Republic, Cuba and the Guantanamo Naval Base.-A nine-day study mission, conducted between January 3-12, 1979, was organized by the Subcommittees on Inter-American Affairs and International Economic Policy and Trade. The mission provided the opportunity for firsthand observations and to meet with kev government officials and private citizens of Jamaica and the Dominican Republic, on our military and economic ties, trade and narcotics control in an effort to improve bilateral relations. A planned visit to Haiti was canceled.

During a stopover in Cuba, the congressional delegation made a visit to several Cuban Government projects, however, most of the visit

was devoted to discussions with American and Cuban officials, including President Castro. In another stop at the U.S. Naval Base at Guantanamo, the delegation received a classified briefing on Cuban and Soviet military capabilities and activities in the Caribbean region, visited base facilities, and examined the perimeter surrounding the

base.

The report, submitted to the Committee on Foreign Affairs, entitled "Caribbean Nations: Assessments of Conditions and U.S. Influence" was printed in July 1979. The report was submitted by Representatives Jonathan B. Bingham, Benjamin A. Gilman, and Robert J. Lagomarsino. Other participants included: Representatives Edward J. Patten, Guy Vander Jagt, William Clay, Dawson Mathis, Stephen D. Symms, Richard Nolan and John P. Wydler.

(b) 19th Annual Inter-Parliamentary Meeting.-The subcommittee participated in the 19th Annual Inter-Parliamentary Meeting held in Mexico on May 25-28, 1979.

Members in attendance were Chairman Gus Yatron, Representatives Benjamin A. Gilman, Robert Lagomarsino, staff director, Gene Friedman, staff associate, Jason Cooke and minority consultant, Edward Fox.

The purpose of the meeting was for the subcommittee members to meet with fellow Mexican parliamentarians to discuss issues which would foster better relations between the United States and Mexico. Issues discussed included: trade, economic development, immigration and energy.

(c) Study Mission-Nicaragua.-A 212-day study mission was conducted to Nicaragua from November 16 through 18, 1979. The trip, led by subcommittee member, Congressman Dante B. Fascell, included: Congressman Gus Yatron, Chairman, Subcommittee on Inter-American Affairs, and Robert J. Lagomarsino, subcommittee member, as well as Congressmen Lee H. Hamilton, David Obey and Matthew H. McHugh. Staff of the subcommittee participating included: Gene Friedman, staff director and J. Edward Fox, minority staff consultant. During the trip, the delegation met with key government officials and members of the private and religious sector to determine the effects of aid already given and the ability of the country to absorb future aid.

(d) Miami Conference on the Caribbean.-Subcommittee Chairman, Gus Yatron and staff director, Gene Friedman, attended a 3day conference entitled, "Miami Conference on the Caribbean." The conference, held between November 28 and 30, 1979, was sponsored by the American Enterprise Institute, the Council of the Americas and the Committee for the Caribbean in cooperation with the U.S. Department of State. The meeting focused on trade, investment and development in the Caribbean region.

2. Briefings and Informal Meetings:

(a) Presidential Trip to Mexico.-Honorable Viron P. Vaky, Assistant Secretary, Bureau of Inter-American Affairs, Department of State, briefed members of the Committee on Foreign Affairs on the President's trip to Mexico, on February 8, 1979. Immediately following the briefing, Secretary Vaky gave the members an update on the situation in Nicaragua.

(b) Development in Latin America.-On February 22, 1979, Mr. Francis Mason, Senior Vice President for Latin American Affairs, met with members and staff of the Committee on Foreign Affairs to discuss the development process in Latin America and the role of commercial banks,

(c) U.S. Voluntary Contributions to International Organizations. Members were invited to meet with the Hon. Gale W. McGee, U.S. Permanent Representative to the Organization of American States and the Hon. C. William Maynes, Assistant Secretary of State for International Organizational Affairs, on March 2, 1979.

(d) The Changing Picture in Nicaragua.-Subcommittee members met with Brandon Grove, deputy assistant secretary, Bureau of InterAmerican Affairs, Department of State, on July 18, 1979. Mr. Grove provided an update for members of the Subcommittee on Inter-American Affairs and also met with the Hon. Lawrence Pezzullo, Ambassador to Nicaragua, on July 20, 1979. A subsequent briefing was also held with Ambassador Pezzullo in regards to the Nicaraguan situation.

(e) Latin American Military Training. In assisting Latin American senior military officers to understand the policy-making process of the American system of government, Members of the Committee on Foreign Affairs met with current students of the Inter-American Defense College of the Organization of American States, on October 15. 1979. The Inter-American Defense College has produced many graduates who have gone on to retain such key positions in the armed forces and government as military commanders, ambassadors, cabinet ministers and even Presidents.

3. Visits With Foreign Dignitaries:

(a) U.S. Government Request for Extradition from Chile.-On May 22, 1979, the subcommittee members were briefed by Ambassador Barros of Chile on the position of his government on the extradition of three Chilean officials, charged with international terrorism, for trial in the United States.

(b) Jamaican Political Assessment.-Members of the subcommittee met with Mr. Edward Seaga, the Opposition Leader of the Jamaican Labour Party, and Dr. Perry Broderick, deputy chairman, on October 19, 1979. The purpose of the meeting was to brief members of the political situation in Jamaica and to better understand the views of the opposition.

(c) Nicaraguan Sandinista National Directorate. The subcommittee participated in a coffee meeting to welcome three members of the Nicaraguan Government, on Thursday, December 6, 1979. The delegation included Jaime Wheelock. Minister of Agrarian Reform, and Victor Tirado and Carlos Nuñez, both members of the Sandinista National Directorate.

The meeting was held in order to satisfy inquiries of the members before voting on the proposed aid package to Nicaragua, as well as to give the delegation an opportunity to present their message to the members first-hand.

(d) Bolivian Senate President. The subcommittee held a reception for Dr. Walter Guevara Arze, President of the Senate of Bolivia. on December 13, 1979, Dr. Guevara, who presided as interim president

of Bolivia until the coup in November, advised the members of the present situation in Bolivia.

(e) Nicaraguan Private Sector.-On October 16, 1979, the subcommittee met with 12 Nicaraguan private sector leaders to become more aware of the situation other than on the political or military level. (f) Guatemalan Private Sector. The subcommittee staff hosted a group of business leaders from Guatemala on Friday, November 9, 1979, to exchange views on the situation and conditions in Guatemala presently.

Hearings

B. 1980

1. Foreign Assistance Legislation:

(a) Fiscal year 1981.-Public hearings on economic and security assistance to Latin America were held on February 7, 12, 28 and March 6, 1980.

Witnesses appearing on February 7 included: The Honorable John A. Bushnell, Deputy Assistant Secretary for Inter-American Affairs, The Honorable Franklin D. Kramer, Principal Deputy Assistant Secretary of Defense for International Security Affairs, and Admiral Gordon J. Schuller, Director of the Inter-American Region, Office of the Assistant Secretary of Defense for International Security Affairs, accompanying Secretary Kramer.

Secretary Bushnell stressed the importance of IMET (International Military Education Training) programs, and stated that IMET has become our most significant channel of contact with the military in many countries. Convinced that regional and sub-regional cooperation and inter-dependence can be the key to accelerating development in Latin America and the Caribbean, Bushnell told members of the subcommittee that the administration's proposals for fiscal year 1981 foreign assistance tried to maintain the momentum of assistance to regional programs.

Along the same lines, Secretary Kramer testified that "the fundamental security problems in Latin America arise from deep economic and social grievances and FMS and IMET programs are the most effective way to influence by providing the materials and training they seek."

The sole witness on February 12 was Edward W. Coy, Acting Assistant Administrator, Bureau of Latin America and the Caribbean, Agency for International Development.

Mr. Coy stated that "in FY 81, A.I.D. will continue to give priority to supporting host country efforts to promote broad-based participatory development in Central America. A.I.D. has encouraged expanded cooperation among the Caribbean countries to develop regional solutions to common problems. At the same time, we recognize that each country has a unique set of development constraints and that solutions must be tailored to the circumstances of each nation."

To round out the picture on the scope of FY 81 foreign assistance to Latin America, the three directors of the regional offices for the Agency for International Development testified on February 28, 1980. They included: Emerson J. Melaven, Director, Office of Caribbean Affairs; Robin L. Gomez, Director, Office of Central American and

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