March 5, 1997 CONGRESSIONAL RECORD — SENATE S1945

John Tower. (The FBI summary consists of The documents we will provide are ex- AMENDMENT NO. 19 the following parts: (1) summary memo- tremely sensitive. Their disclosure could (Purpose: To require Congressional approval randum (undated [December 13, 1988]); (2) jeopardize the privacy interests of Senator before any international trade agreement summary memorandum (December 23, 1988); Tower and others, the confidentiality of FBI that has the effect of amending or repeal- (3) summary memorandum (undated [Janu- sources, the FBI’s ability to conduct back- ing statutory law of the United States law ary 6, 1989]); (4) summary memorandum (Jan- ground investigations, and our ability to re- can be implemented in the United States) uary 13, 1989); (5) summary memorandum cruit qualified candidates for positions of The PRESIDING OFFICER. The (undated [January 25, 1989]); (6) summary governmental service. Therefore, I am memorandum (February 8, 1989); and (7) sum- clerk will report. pleased that we have agreed on ground rules The assistant legislative clerk read mary of the ongoing investigation not yet for Committee access that suit our purposes completed by the FBI.) Since these docu- and yours. The enclosed Terms of Access sets as follows: ments are the property of the Executive forth the procedures for access, custody, The Senator from South Carolina [Mr. branch and involve extremely sensitive in- storage, and return to the Executive branch HOLLINGS] proposes an amendment numbered formation, they will be made available only of the FBI background summary. With this 19. through the Office of Senate Security lo- understanding, we are prepared to deliver On page 2, after line 8, insert the following: cated at Room S–407, United States Capitol. copies of these documents to your Com- SEC. 2. CONGRESSIONAL APPROVAL OF CERTAIN TRADE AGREEMENTS REQUIRED. Only Senators on the SASC and not more mittee immediately. than 6 designated SASC staff members (as No international trade agreement which I believe that this understanding will make determined and designated by the Chairman, would in effect amend or repeal statutory it possible for the Committee to proceed ex- SASC, and the Ranking Minority Member) law of the United States law may be imple- peditiously on this nomination once the FBI and designated members of the Executive mented by or in the United States until the has completed its investigation. branch shall be granted access to these docu- agreement is approved by the Congress. ments at this location. The names of the des- Sincerely, C. BOYDEN GRAY, The PRESIDING OFFICER. The ignated staff members shall be provided, in Chair announces there are 3 hours writing, to the Counsel to the President Counsel to the President. equally divided on the amendment by prior to their being given access to the docu- Mr. LEVIN. Mr. President, I suggest ments; and the names of the Executive the absence of a quorum. the Senator from South Carolina. The Senator from South Carolina. branch officials shall be provided, in writing, The PRESIDING OFFICER. The to the Chairman, SASC, prior to their access Mr. HOLLINGS. I thank the distin- at this location. A record of all persons using clerk will call the roll. guished Chair. Mr. President, I ask these documents in Room S–407 shall be The assistant legislative clerk pro- that the distinguished senior Senator maintained. ceeded to call the roll. from North Carolina [Mr. HELMS] be Access to these documents will be limited Mr. MCCAIN. Mr. President, I ask added also as a cosponsor of the amend- to Senators on the SASC and the 6 des- unanimous consent that the order for ment. ignated SASC staff members. These docu- the quorum call be rescinded. ments may be reviewed in Room S–407 only; The PRESIDING OFFICER. Without no additional copies may be made; and no The PRESIDING OFFICER. Without objection, it is so ordered. documents may be removed. Any notes de- objection, it is so ordered. Mr. HOLLINGS. Mr. President, the rived from these documents shall be treated amendment that has just been read is as sensitive and shall be used only in connec- f so simple, so fundamental. I am heark- tion with the Committee’s Executive Session ening to our new Members of the U.S. deliberations (and vote). At the conclusion of Senate, just in January, a few weeks the Committee’s deliberations (and vote), WAIVING CERTAIN PROVISIONS OF any notes shall be destroyed or considered THE TRADE ACT RELATING TO ago, ‘‘I hereby pledge to support and part of the FBI documents for purposes of THE APPOINTMENT OF THE U.S. defend the Constitution of the United this Agreement. TRADE REPRESENTATIVE States.’’ Within 14 days of the conclusion of the This is constitutional language, that Committee’s deliberations (and vote) on Sen- The PRESIDING OFFICER (Mr. no international agreement that ator Tower’s nomination, these documents GREGG). Under the previous order, the would, in effect, amend or repeal statu- will be returned to the Counsel to the Presi- clerk will report Senate Joint Resolu- tory law can be implemented until ap- dent unless another agreement has been tion 5. reached with the Senate leadership. proved by the Congress. Under the Con- The assistant legislative clerk read stitution, article 1, section 8, it is the SAM NUNN, as follows: Chairman, Senate duty of the Congress to regulate for- Armed Services Com- A joint resolution (S.J. Res. 5) waiving cer- eign commerce—not the executive mittee. tain provisions of the Trade Act of 1974 relat- branch; not the executive branch. JOHN WARNER, ing to the appointment of the United States Obviously, to really change the law Ranking Minority Trade Representative. you would have to have three readings Member. The Senate proceeded to consider the in the House and three readings in the C. BOYDEN GRAY, joint resolution. Senate and signed by the President. Counsel to the Presi- The PRESIDING OFFICER. Who dent. The fact that this amendment, which I yields time? tried to make as clearcut and as prin- THE WHITE HOUSE, Mr. MCCAIN. Mr. President, I believe cipled as it possibly could be, where Washington, DC, February 14, 1989. under the unanimous-consent agree- there would be no confusion, has been Hon. SAM NUNN, ment the amendment by Senator HOL- so vigorously opposed by the White Chairman, Committee on Armed Services, U.S. LINGS is in order at this time. House and certain ones in Congress Senate, Washington, DC. The PRESIDING OFFICER. The Sen- that there is no doubt in my mind that DEAR MR. CHAIRMAN: With respect to our ator is correct. The Senator from conversation last Friday regarding access by with respect to foreign trade, with re- the Senate Armed Services Committee to South Carolina. spect to global competition, we are in the Federal Bureau of Investigation’s (FBI) Mr. HOLLINGS. Mr. President, as I the hands of the Philistines, we are in summary of its background investigation of understand, the pending business is the hands of the multinationals. Rath- Senator Tower in connection with his nomi- that I send to the desk an amendment er than the Congress controlling the nation as Secretary of Defense, I am grati- to the waiver amendment of the com- multinationals and international fied that we have now reached an under- mittee; is that at the desk? trade, the multinationals, by this ini- standing on the way in which we will pro- The PRESIDING OFFICER. The ceed. tiative, are controlling the Congress. I believe the fact that all of the Commit- Chair would observe that the desk does What is the initiative? Well, they tee’s subsequent deliberations involving the not have the amendment. could not find any language to amend FBI summary on Senator Tower’s nomina- Mr. MCCAIN. The waiver amendment my amendment. They could not find tion will occur during Executive Session is the pending business. What is not at anybody to really object to it. What only, that this nomination has significant the desk is the amendment of the Sen- they did do, then, was to say, well, we national security implications, and the ator from South Carolina to the waiv- will get some letters written—inciden- unique nature of the allegations concerning Senator Tower warrant a one-time-only ex- er. tally, by people who had nothing to do ception to the procedures governing access The PRESIDING OFFICER. The ob- with this particular part of the tele- to FBI background investigations by Com- servation by the Senator from Arizona communications bill—and the com- mittee members. is correct. ments were that Mr. ARCHER of the

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1946 CONGRESSIONAL RECORD — SENATE March 5, 1997 Ways and Means Committee over on for this particular approach—I don’t So I talked to Ambassador Kantor at the House side then sends a letter on know where he is now, but I am check- that particular time, back in 1995, and the one hand, saying that he would ing him. I quote Mr. Hunt: Senator BYRD wrote a letter on April 3, blue slip this particular appointment of I am concerned about the prospects of for- 1995. And, again, Ambassador Kantor, Barshefsky in that the Hollings amend- eign monopolies being able to buy into our the United States Trade Representa- ment would involve revenues. markets while they are still monopolizing tive, came forward with his letter and You know that is not going to hap- their home markets. And as global media de- acknowledged the law. I think that is pen. I think they made some bad mis- velopments occur, as the Congressmen men- the important part, because in his let- takes over on that side. I think they tioned earlier, we must be attentive to the ter back to Senator BYRD on April 24, have sort of redeemed themselves from fact that if a foreign company is a monopo- 1995—I am trying to congeal it so ev- the contract. They certainly have re- list in its own country, it has a prospect of using that monopoly to leverage unfair com- erybody understands it—I ask unani- deemed themselves from three budgets. petition into this country. I am concerned mous consent that this letter from Mi- In 1995, they said the President was in- about that. chael Kantor, dated April 24, 1995, be consequential and that they had three That is in May 1995, almost 2 years printed in the RECORD. budgets, and whether you agreed or There being no objection, the letter ago. not, that is what they were going to do. was ordered to be printed in the Mr. President, we also have the Now they say, Mr. President, ‘‘Please RECORD, as follows: statement of the FBI and the DEA, who give us a second budget.’’ They do not wrote, also, in May 1995: APRIL 3, 1995. even give one, much less three. But I Ambassador MICKEY KANTOR, do not think they would revert back to Even with the foreign corporation as pri- U.S. Trade Representative, vately held, we believe that a foreign-based Washington, DC. nonsensical conduct and try to act like company could be susceptible to the influ- an appointment to be confirmed by the DEAR MR. AMBASSADOR: The Senate will ence and directives of its own government. soon take up S. 652, the Telecommunications U.S. Senate wherein it had a rider that There are numerous examples of foreign Competition and Deregulation Act of 1995, to the law be obeyed, the Constitution be companies being used and directed by their promote competition in the telecommuni- supported and defended. ‘‘Protect and governments to carry out, or assist in car- cations industry. I am writing to solicit your defend’’ is the oath we take, and that rying out, government intelligence efforts views on the revision of foreign ownership involves revenues. But be that as it against the United States Government and provisions, specifically the revision of Sec- may, Mr. President, that is exactly all major corporations. tion 310(b) of the 1934 Communications Act. what they have done. And more re- That is a letter to the Honorable As you may know, the Commerce Commit- tee’s reported bill would allow the FCC to JOHN D. DINGELL, on May 24 1995, by cently, they have come by—and I have waive current statutory limits on foreign in- been vitally interested—and one of the the Director of the Federal Bureau of vestment in U.S. telecommunications serv- ambassadors in the United States Investigation, Judge Louis J. Freeh, ices if the FCC finds that there are ‘‘equiva- Trade Representative’s office was to be and the Administrator of the Drug En- lent market opportunities’’ for U.S. compa- appointed ambassador in charge of forcement Administration, Thomas A. nies and citizens in the foreign country trade there at Geneva—we have writ- Constantine. where the investor or corporation is situ- ten letters and made calls to the White Mr. President, the law that we are ated. talking about, and the two sections— I would like to have your assessment of the House—Ms. Rita Hayes. Now we have impact of this provision for both enhancing calls in, indirectly, that that can’t be section 310(a) of the statutory law of the prospects of U.S. penetration of foreign had or done. I think it was about to be communications—‘‘The station license markets, and for foreign investment in approved—‘‘unless HOLLINGS gives up required under this act shall not be American telecommunications companies his amendment.’’ granted to or held by any foreign gov- and systems. So they have tried every shenanigan ernment or the representative there- Specifically, what impacts and advantages of.’’ Section 310(b) limits any owning or can we anticipate will result from enactment in the world, which tells me—and of this provision on the ongoing negotiations should tell this Congress—that the ex- controlling interest to 25 percent. in Geneva on Telecommunications which has ecutive branch is going to make its Now, I understand somebody is going been established under the GATT, to be in- agreements, come hell or high water, to say the special trade representative corporated into the General Agreement on and they could care less. Not a treaty, never testified. We had numerous Trade in Services? but just executive agreements. The meetings. You have to know how the Second, which markets in Asia and Europe media and everybody is supposed to go executive branch works. We haven’t are now closed to U.S. telecommunications had any hearings from them once they services in such a way that action on the along and say, well, I think the Sen- basis of the concept of Reciprocity in the ator is right, but we have to go ahead got the agreement here in February, Senate bill is likely? What timeframes for with this appointment. They are just last month—any hearings on the such action, if any, would you contemplate? changing the law. They admire the agreement, or anything else of that Third, what has been the position of na- three readings in the House and the kind. They just gave away 100 percent tions whose markets are closed to U.S. tele- three readings in the House with re- in violation of 310(a). They didn’t just communications services in the way of justi- do the 25 percent in 310(b). They go in, fying their lack of access, and what likely spect to Ms. Barshefsky. She does not reactions can we anticipate from those na- previously qualify having registered as naive as get out, I can tell you that. tions as a result of this legislative provi- British Steel and foreign competitors. I want to build a bridge back to the sions? They passed that waiver out, and it no old-fashioned Yankee trader. Come in What role do you think can be most use- doubt will be adopted here in the U.S. and say, look, we have the largest and fully played by your office in effectively im- Senate, but to just say ‘‘provided fur- the richest market; what can you come plementing the provision that has been rec- up with? Let’s see what you propose ommended? ther, that if she enters into an agree- Lastly, in analyzing the legislation re- ment that would amend or change stat- and we will work with it. Instead, like ported from the Senate Commerce Com- utory law, that before it be imple- goody-goody two shoes, this touchy- mittee, do you have any suggestions as to mented, it first must be approved by feely crowd that we have up here in how the provision might be strengthened to Congress.’’ Just as simple as that. Washington says, ‘‘We will give you 100 better serve the goal of opening foreign mar- So let’s get right to the ‘‘meat of the percent and let’s see what you come up kets to U.S. telecommunications services coconut,’’ as they say, because this has with.’’ Nippon Telephone & Telegraph and products? been going on for 2 years. This isn’t says, ‘‘Thank you for the 100 percent, Thank you for your attention to this mat- ter. any last minute—one of the letters bug off, you get nothing from us.’’ And Sincerely, from one Senator said this is a last- you go down the list. No country gave ROBERT C. BYRD. minute attempt. Oh, no, this isn’t last us any kind of 50-percent ownership. Mr. HOLLINGS. I will just read one minute. We had hearings on foreign Our best of allies and friends in inter- line: ownership of telecommunications. We national trade, Canada and Mexico, in By amending the legislation as we suggest, have had testimony of the different en- NAFTA, said, ‘‘No, you can’t get a 50- the Congress would provide effective market tities. Mr. Reed Hunt, the Chairman of percent.’’ Under 50 percent. So you can opening authority for both multilateral and the Federal Communications Commis- see what a spurious approach they bilateral negotiations on basic telecommuni- sion, who was at one time conspiring used, in violation of the law. cations services.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1947 I emphasize the phrase ‘‘by amending Constantine’s inhibitions, and we had question and is sort of hugging up to the legislation as we suggest,’’ because the same concerns. We would study you and says, ‘‘I want to work with you got the U.S. Trade Representative them and go over them very closely. you, I want to work with you, I want to Barshefsky, she says, ‘‘You don’t have We had reciprocity with the snapback work with you.’’ I said to Ambassador to amend it now. I got agreement. provision. I authored it. We put it in Barshefksy, ‘‘Madam, I do not want Take it and like it or else.’’ But that the bill after hearings and said, look, if you to work with me. I want you to isn’t what the U.S. Trade Representa- the country changes its mind or comes work with that statute. Don’t go over tive said in 1995. We heard about this. under improper control and they kick and say you did not know anything So on April 25, we wrote a letter—the us out, snap back, kick them out. Fair about it because we have been in the distinguished majority leader, Senator is fair. We thought that very reason- debate, and you are going to have TRENT LOTT, the distinguished Senator able to move an agreement on the many Members really turned off on from Texas, KAY BAILEY HUTCHISON, international telecommunications. But this one, and we will have to take ac- the distinguished Senator from Hawaii, the representatives of the White House, tion.’’ But it was quite apparent to me DANIEL K. INOUYE, and myself. in particular the Special Trade Rep- with that ‘‘I want to work with you’’ I ask unanimous consent that this resentative, now called U.S. Trade Rep- stuff that she had no idea of working letter to the President on April 25, 1996, resentative, started dealing with Mr. with us in good faith. Of course, now be printed in the RECORD. OXLEY on the House side. And we were we know. There being no objection, the letter in the conference. As reported in the Journal of Com- was ordered to be printed in the So all during 1996 in that particular merce on February 19, 1997: RECORD, as follows: conference, we worked around and we The United States decision to end its stat- U.S. SENATE, COMMITTEE ON COM- worked around. Finally, in December, I utory restrictions on foreign investment in MERCE, SCIENCE, AND TRANSPOR- talked to our friend Mickey Kantor, this sector was crucial to carrying along a TATION, global deal in which the rest of the world has the Ambassador. I said, ‘‘Mickey, we made varying levels of commitment to simi- Washington, DC, April 25, 1996. can’t get together on this one. There is Hon. WILLIAM J. CLINTON, larly open their markets. The President, not going to be any change. Whatever So, to end the statutory restrictions, The White House, agreement you make will just have to we have not extended the statutory re- Washington, DC. come back. Maybe that is the way. If strictions. Nothing has been hap- DEAR MR. PRESIDENT: We are writing to ex- you want some change in the law, then pening. There has not been three read- press our concern with the current negotia- come on back to Congress.’’ ings in the House nor three in the Sen- tions governing trade in telecommunications We have debated it already now for 3 services. The United States has an open and ate. We haven’t even debated it here years. We would be glad to get together this year. But they already have the competitive market for telecommunications on it. But with all the facets of the up- services. U.S. companies are the most inno- trade press quoting exactly what the vative in the world. Current negotiations grading and the revision of the 1934 public official of the U.S. Government should not result in an agreement that uni- telecommunications act and consid- is saying. Here we are all in the uproar. laterally opens the United States market ering all the various decisions made We have the special committees, the while barriers, both formal and informal, over a 60-year period, we couldn’t independent prosecutors, ‘‘Get them, continue to keep U.S. companies out of for- agree. get them, foreign influence on policy. eign markets. So Ambassador Kantor said, fine, We are deeply concerned about the effects We can’t have anybody give us a con- that is what they would do. However, tribution and influence policy.’’ And of any trade agreement, including a review in the early part of the year when we by a dispute settlement panel of the World over here, while we are not looking, a Trade Organization (WTO), on the independ- came back—again negotiating all dur- public official of the U.S. Government ence and integrity of the Federal Commu- ing 1996—to the Congress just a couple is giving it away in violation of section nications Commission (FCC). Congress did of months ago, we kept hearing again 310(a) and 310(b) of the communications not make any changes to the foreign owner- that we were somehow going to be ig- act. So, yes, I talked to Members. I ship limitations of the Communications Act nored and that they were making offers said, ‘‘I just want to make it crystal when it enacted the Telecommunications over there. clear that either we are going to go to Act of 1996 (P.L. 104–104). Mr. President, on February 4, 1997— We believe strongly that the public inter- conference’’—like our lawyer friend again Senators ROBERT BYRD, BYRON est test contained in the Communications Sullivan, who said, ‘‘I am not a potted Act of 1934, as amended, must be retained DORGAN, DANIEL INOUYE, and FRITZ plant’’—‘‘or else we will let the execu- and that current practices governing foreign HOLLINGS—the four of us joined in a tive pass its own little laws, and we investment not be altered. Any change in letter to the White House saying that can go on home and forget about trying current U.S. law and FCC practices as a re- the USTR should not commit the to work up here to set some valid pol- sult of any trade agreement should be done United States to a trade agreement icy.’’ only with the approval of the Congress in ac- that limits the scope of the public in- So thereby is the amendment. cordance with our Constitutional obligation terest test administered by the FCC, Mr. President, it is interesting. I to regulate foreign commerce. and any changes to current U.S. law With kindest regards, must report to you that even while Ms. Sincerely, should be done only with the approval Barshefsky couldn’t get it, I read that ERNEST F. HOLLINGS, of the Congress. the Canadian official reported in the DANIEL K. INOUYE, So it was clear in January and Feb- Wall Street Journal—and, I quote TRENT LOTT, ruary, long before they made the agree- again, prior to the amendment—‘‘We KAY BAILEY HUTCHISON. ment, that we were watching closely as think that when you look at the over- Mr. HOLLINGS. Mr. President, we best we could. I met on January 17 with all package, our offer is every bit as cite thereon the independence and in- Ambassador Barshefksy. I want it good as the American offer.’’ However, tegrity of the Federal Communications clearly understood that at that par- Canada ‘‘has serious reservations about Commission. ‘‘Congress did not make ticular time we meant exactly what we the United States proposal because it any changes to the foreign ownership said. I cautioned her. It was on Janu- won’t be backed by U.S. legislation.’’ limitations of the Communications Act ary 17. I had already met. That is why At least the trade negotiator from Can- when it enacted the Telecommuni- we sent that February letter. When I ada got my message. I never have cations Act of 1996.’’ met with Ambassador Barshefksy, it talked to that individual. But I can tell What really occurred was, on the was crystal clear to this Senator. I you now, we could not get through. We Senate side, we said, fine, we will go have been up here 30 years. I am the couldn’t get through at all. along on a majority percentage of own- senior junior Senator. And my friend You have to understand along this ership by a foreign entity if there is STROM says, ‘‘You had better get used line, Mr. President, because you are reciprocity. If there is an equal oppor- to it.’’ But I dealt with these trade rep- from the hinterlands where people tunity for U.S. companies to own and resentatives way back into the 1950’s, think straight, that you can tell why control, we will let them own and con- 40 years ago. I have handled clients as this crowd up here operates in the belt- trol, under certain circumstances, a practicing lawyer, when the indi- way and miasma totally of their own with, of course, Judge Freeh’s and Mr. vidual continues to not answer the dreams. And when we as Senators go

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1948 CONGRESSIONAL RECORD — SENATE March 5, 1997 home—Oneita Mills, which just a cou- market forces, market forces. After how many law firms or whatever it was ple of months ago closed down, was World War II, that was a valid conten- around here—representatives. I got up just not a complicated operation mak- tion. We had the dominant auto indus- at that time the total salaries of all ing T-shirts. But I got there some 35 try. We wanted to foster capitalism in the House Members, 435, and all the years ago when I was Governor—and I the emerging Third World. We were Senators, 100. Of the 535, we were only am proud of it—in a little country looking for freedom and democracy to paying to have represented the people town of Andrews, SC, and I got 487 em- be spread into Europe and into the Pa- of America some $71 million. Japan was ployees, and Washington says, ‘‘Don’t cific rim. So we taxed ourselves by bil- better represented in Washington at worry about it. What we need is re- lions for the Marshall Plan and there- $113 million. training, retraining, retraining.’’ The upon coaxed our industries to invest Read the book and you will see how former Secretary of Labor, my friend overseas. And invest they have. these U.S. Trade Representatives, after Bobby Wright, that is all he thinks: But if you want to see the sheep dog putting in time here, went to represent Skills, skills, skills, retrain. We have gobbling up the entire flock, you ought the other side. That is why we have the skills coming out of our ears. We man- to watch these multinationals that we waiver. Senator Dole said you cannot ufacture automobiles. They didn’t go created. The nationals went over. They represent a foreign entity and then to Detroit. We never made one. But we resisted it at first. They could not come in here and represent us. But, of have the skills, and we put in there a speak the language. The air flights course, the Finance Committee is in a technical training system. I put it in. were not good. They did not get good fix, and there we are. There we are, in In 1961, we broke ground up there in food on them or anything else of that the hands of all the lawyers around Greenville on a garbage dump. I guess kind. But gradually they learned that here. There are 60,000 lawyers reg- EPA would catch me now. But that is in manufacturing, 30 percent of volume istered to practice in the District of where the school is. And I broke is in labor cost—payroll. And you can Columbia. That is more lawyers than ground for 16 others. We got the skills. save as much as 20 percent in a typical the entire country of Japan. And they But back to Oneita, they said, ‘‘Re- manufacturing entity by moving to a come around here and they hate law- train, retrain; get another job; we don’t low-wage country. So it is that an enti- yers, they hate lawyers. They are all have enough skills. You don’t under- ty, a manufacturing company that has billable hours. Get yourself charged on stand the problem. We up here in Wash- $500 million in sales can keep its sales an ethics charge and try to find one for ington understand the problem.’’ Non- force, its executive office back here at less than $400 an hour. They have never sense. Assume that they retrain as the home headquarters but move its been in the courtroom. They never computer operators; tomorrow morn- production, its manufacture to a low- tried a case. They come around here. ing you have 487 computer operators. wage country and make itself $100 mil- They ought to all go to work for O.J. The average age at Oneita was 47 years lion, or it can stay here, continue to Fix that jury. Fix that Congress. That of age. Are you going to hire the 47- work its own people and go broke. is what we have on us, and you cannot year-old computer operator or the 20- That is what is going on. How do you get a word for anybody to represent the or 21-year-old? You are not going to as- get that through the news pages so reality of this global competition. sume the retirement costs and the they understand it? There are two schools—two schools health costs of the 47-year-old. They So the nationals gradually became of international trade. One, of course, are out. over the 50-year period since World War is Adam Smith, the market forces, fos- Yes, I see it when I look at that GE II, multinationals, and then the na- tered by David Ricardo, comparative plant that I brought in from Brazil. In tional banks, Chase Manhattan and advantage, comparative advantage. the competition they said, if you want Citicorp, as of 1973, made a majority of But the other school, Friedrich List, to sell those transformers to us, you their profit outside the United States. which is almost top secret in this body: are going to have to move your plant. So you have got the multinational cor- The strength and the wealth of a na- So when I brought one to South Caro- porations and the multinational banks. tion is measured not by what it can lina, they closed the plant down and And thereupon you have them making consume but by what it can produce. GE is gone, moved offshore. their money and coming back in with Malaysia, Baxter Medical. I brought the consultants and the takeover of all And that is the global competition. that one in, but we are still giving tax the think tanks and everything else. None of them have gone down the road incentives to invest overseas, so they I can bring you right up to date. of Adam Smith. They have all gone closed down last year and they have They just established a chair at the down the road of mixed economies, and gone to Malaysia. Saturday before last, Brookings Institute on free trade, and that is what built the United States of Sara Lee in Hartsville, with 187 jobs, do you know who is financing it? Toy- America. That is what built this great gone to Mexico. ota. Toyota. So Brookings comes and economic giant, the U.S.A. We lost, in the year 1995, 10,000 tex- says, this is great about free trade. Oh, The earliest day after we had won tile jobs in South Carolina, and I think sure, those multinationals, they joined our own freedom, the Brits cor- an equal amount this past year. I am up with the foreign countries. The for- responded back to our forefathers and trying to get the figure. When they eign countries want to dump every- they said, now, as a fledgling little col- talk about educate, educate, educate, thing. The multinationals want to ony here, you have gotten your free- educate here at the White House, they manufacture and dump everything dom. You trade back with us what you better buy a few books and read them back here. produce best and we in Great Britain themselves. They better get hold of Then, of course, the retailers. The re- will trade back what we produce best— ‘‘Looking at the Sun,’’ by James tailers, we proved here in many a de- free trade, free trade, free trade. Alex- Fallows, or ‘‘Blindside’’ by Eammon bate, do not lower their price. They ander Hamilton wrote a book that Fingelton or ‘‘The Future of Cap- make a bigger profit. So every time we there is one copy of under lock and key italism,’’ by Les Thurow, or our friend bring up a reciprocal trade measure or over here at the Library of Congress. I Bill Greider, ‘‘One World, Ready or try to get customs agents, which are will not read the booklet. We have had Not,’’ and, of course, the most recent needed because there is over $5 billion a copy of it in my file. But in the line, book by Robert Kuttner ‘‘Everything in transshipments in violation of our Hamilton told the Brits, Bug off. We For Sale.’’ You begin to sober up and agreements, whenever we try to get are not going to remain your colony. understand what the head of Motorola, that, the retailers are up here We are not going to ship our natural in Malaysia said as quoted by Mr. pigeonholing every Senator. resources, our timber, our coal, our Greider that the people of America So you have the multinationals, the iron, our wheat, our farm stuffs, and have no idea in the Lord’s world what multinational banks, the consultants, you ship back the finished products. is happening to them. the campuses, the think tanks, and We are going to make ourselves eco- What we are doing is making the ex- then read ‘‘Agents of Influence,’’ by nomically strong. And the second bill ception the rule. And what is the ex- Pat Choate, and that was back 7 years that ever passed this U.S. Congress in ception? The exception is free trade, ago when Japan, one country, had a its history—the first had to do with the free trade, free trade. Adam Smith, $113 million retainer of—I don’t know seal of the United States—but on July

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1949 4, 1789, the second bill to pass this Con- see my distinguished colleagues have negotiations on telecommunications gress was a tariff bill of 50 percent on been very patient with me. I guess they services last spring, she had the resolve 60 different articles. We started with would be glad to be heard at this time, to walk away from the table when protectionism, protectionism, protec- so I yield the floor and reserve the re- other countries had presented patently tionism. mainder of my time. insufficient offers to open their tele- Later, when we were going to build a The PRESIDING OFFICER. Who communications markets. transcontinental railroad, they told yields time? Her hard-nosed stand in the tele- President Lincoln we could get the Mr. BENNETT. Mr. President, I sug- communications talks forced countries steel from England. He said, No, we are gest the absence of a quorum. to make substantial improvements in going to build our own steel mills. And The PRESIDING OFFICER. The their offers, and the result was a his- when we are finished, we will not only clerk will call the roll. toric agreement reached on February have the transcontinental railroad, but The legislative clerk proceeded to 15 to liberalize trade in basic tele- we will have an industrial steel capac- call the roll. communications services. ity. Mr. ROTH. Mr. President, I ask unan- The Agreement on Trade in Basic Again, in the darkest days of the De- imous consent that the order for the Telecommunications Services will save pression, when people were in food quorum call be rescinded. consumers hundreds of billions of dol- lines, Franklin Roosevelt, with his The PRESIDING OFFICER. Without lars and will allow our telecommuni- Economic Recovery Act, put in— objection, it is so ordered. cations industry to compete in foreign what?—put in subsidies for America’s Mr. ROTH. Mr. President, under the markets that were previously closed to agriculture, payments to the farmers unanimous-consent agreement, an hour them. that continue today, and protective has been provided for the chairman and Given these accomplishments and her quotas. And therein is the wonderful ranking member of the Finance Com- demonstrated toughness and resolve on success story of America’s agriculture. mittee for debate on the resolution. I behalf of U.S. interests, I think there is So, we say, ‘‘Preserve, protect, and will yield myself such time as I may no question but that Ambassador defend.’’ We have the Army to protect take from that hour. Barshefsky is extraordinarily well us from enemies without, the FBI to The PRESIDING OFFICER. The Sen- qualified for the position as U.S. Trade protect us from enemies within, we ator is recognized. Representative. Indeed, her achieve- have Social Security to protect us from Mr. ROTH. Mr. President, I rise to ments, negotiating skills and profes- the ravages of old age, Medicare to pro- voice my strong support for Charlene sionalism remind me of another able tect us from ill-health—we can go right Barshefsky as U.S. Trade Representa- woman USTR, Carla Hills. We enter a time when we greatly down the functions of Government. tive. Her nomination was favorably re- need as U.S. Trade Representative When it comes down to a competitive ported by a unanimous vote of the Fi- someone with the qualifications that trade policy, we are in the hands of the nance Committee on Thursday, Janu- Ambassador Barshefsky brings to the Philistines, the multinationals. They ary 30, 1997. It is evident that the nomi- position. The next USTR will be called are pulling our strings. They want fast nation of Ambassador Barshefsky has upon to manage a number of difficult track. They do not want any debate. wide bipartisan support in the Senate. trade issues, including the increasingly They want to just pass the bills and, if This is not surprising when one looks complicated trade relationship with you don’t do it, we will make the at the impressive record she has com- piled as a trade negotiator at the Office China. agreement anyway and bag it. Bug off. Specifically with respect to China, of U.S. Trade Representative, first as That is what they are telling us. So we we face a ballooning trade deficit and Deputy USTR and then as acting put in our amendment. increasing tensions on trade matters USTR. I have had long experience in this with that country. Moreover, we will During her nearly 4 years at USTR, field. I testified during the 1950’s. I soon enter again into the annual de- Ambassador Barshefsky has succeeded came up here and testified before the bate over whether China should con- in negotiating an impressive list of old International Trade Commission, tinue to enjoy normal trade relations multilateral and bilateral trade agree- and Tom Dewey represented the Japa- with the United States, at a time when ments aimed at opening foreign mar- nese. He chased me around the room congressional views on this question kets to U.S. exports. She has also dis- for a couple of days, and he said, ‘‘Gov- will be influenced by China’s action ernor, what do you expect the Third tinguished herself as a vigorous advo- during the reversion of Hong Kong to World emerging countries to make? cate and defender of U.S. trade inter- the People’s Republic this July. Let them make the shoes and the ests. For example, most recently, Am- Ambassador Barshefsky will also be clothing, the textiles. And we, in turn, bassador Barshefsky concluded an im- responsible for negotiating with China in the United States, we will make the portant agreement on insurance with to ensure that it enters the World computers and the airplanes.’’ the Japanese—a matter I was actively Trade Organization on commercially Now, they do not realize it—yes, they involved in on behalf of the United viable terms, which provide for mean- are making the shoes: 89 percent of the States insurance industry. If this ingful market access and a commit- shoes on the floor of this Congress are agreement is fully implemented by the ment from the Chinese to observe the imported; two-thirds of the clothing in Japanese Government, it should result basic rules of the WTO. this Chamber is imported. They are in substantial new opportunities for In addition, Ambassador Barshefsky making the shoes and the clothing, the United States insurance providers. will be the administration’s point per- textiles, but they are also making the Similarly, at the World Trade Orga- son with respect to the difficult issue cameras, the watches, the electronics, nization Ministerial in Singapore last of renewal of fast-track negotiating au- the machine tools. You can go right on December, Ambassador Barshefsky was thority. She will also carry the respon- down the list. And the computers and successful in pushing other nations to sibility to ensure that the trade liber- the airplanes—all of it. conclude a landmark agreement to alization initiatives through the Free Wake up, America. The majority of eliminate tariffs on information tech- Trade Area of the Americas, the Asia that Boeing 777 is made offshore, a nology products. Once put into effect, Pacific Economic Cooperation Forum, good bit of it in China, the People’s Re- this Information Technologies Agree- and the Trans-Atlantic Marketplace public of China. There are some of ment will result in billions of dollars in proceed according to schedule. them who want to say Communist savings to U.S. companies and con- These are all important issues, and I China, we are going to get a Com- sumers. am most confident that they will be munist China airplane to ride around However, Ambassador Barshefsky has handled appropriately working with in. That is how far we have come, but also shown that she can reject bad someone like Charlene Barshefsky. they do not want to admit to it. agreements. She refused to enter into I would like to comment on the issue So, there we are. What we have is a an agreement on trade in financial of the Ambassador’s work for the Gov- situation of the typical promises they services that could have left U.S. finan- ernment of Canada and the Province of make. I am prepared to get into those cial service providers in a worse posi- Quebec while practicing law in the pri- promises, Mr. President, but, perhaps, I tion than before. Similarly, during the vate sector.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1950 CONGRESSIONAL RECORD — SENATE March 5, 1997 Questions have arisen whether this Mr. MOYNIHAN addressed the Chair. She did it because she is a firm rep- work may fall within the terms of sec- The PRESIDING OFFICER. The Sen- resentative of the U.S. interests and tion 141(b)(3) of the Trade Act of 1974, ator from New York. can be someone of just a little hard as amended in 1995 by the Lobbying Mr. MOYNIHAN. Mr. President, I edge when that seems important. Her Disclosure Act. rise, as is so frequently and pleasantly arrival in a place like Singapore is That provision prohibits the Presi- my lot in this Congress, to support en- front page news. I hope she would not dent from appointing any person to tirely the major statement made by mind that on certain Asian missions serve as Deputy USTR or U.S. Trade the chairman of the Committee on Fi- she is referred to as the ‘‘Dragon Representative who has directly rep- nance, our revered BILL ROTH of Dela- Lady,’’ although she has disarming, resented, aided, or advised a foreign ware. personable qualities. She is a tough ne- government or foreign political party As he stated just now, this proposal gotiator. in a trade dispute or trade negotiation for a waiver, a very technical matter, a I make this point simply because with the United States. In my opinion, prudent matter, comes to the floor of there is one overriding issue upon us the vagueness of this new law and the the Senate as a unanimous action of right now—as a trading nation, as the fact that there was no debate or legis- the Committee on Finance. Just last world’s largest trading nation, and the lative history on the provision when it week, we had a revenue measure which sponsor of the World Trade Organiza- was added to the Lobbying Disclosure also came to the Senate with the unan- tion—and that is, as the chairman indi- Act, make it difficult to determine imous agreement of the Finance Com- cated, the terms on which the People’s whether it covers or even should cover mittee and was duly enacted and is Republic of China will be granted ad- Ambassador Barshefsky’s work in the now, in fact, law. The President signed mission to the World Trade Organiza- private sector. that measure. tion, the terms which are going to We are acting today at the request of In order to resolve this matter, the make it be the real test of that organi- the administration, which has a very President formally requested Congress zation. And it will be decisive to its fu- proper principled concern that if there to enact legislation waiving the law in ture. this instance. Senator MOYNIHAN and I is any question about the application It started well. It took a long time to agreed that under these circumstances, of this statute, then let that question get going. As the chairman knows, in a waiver was warranted and, therefore, be resolved by a waiver, which is what the Dumbarton Oaks agreements that we jointly introduced Senate Joint we are doing. were reached with the United Kingdom In the specific instance, Mr. Presi- Resolution 5 to waive the prohibition. at the end of World War II, we con- For those who may have questions or dent, as an attorney in practice here in templated there would be three major concerns about this waiver, I want to Washington, Ambassador Barshefsky international institutions: The Inter- point out that Congress has previously provided legal advice to the Govern- national Bank for Reconstruction and passed legislation to waive a statutory ment of Quebec on softwood lumber Development, which we know as the requirement on who may serve in a countervailing measures—I do not fully World Bank; the International Mone- particular Government position with claim to understand that—and to the tary Fund; and the International Trade respect to a specific nominee. For ex- Government of Canada itself. Organization—three international or- ample, in 1989, Congress passed a waiv- As the chairman has observed and ganizations, the latter to advance the er of the law requiring that only a ci- noted—was she seeking to influence ac- vilian may be appointed head of NASA, tions here in the Congress? She gave reciprocal trade programs that had so that Rear Adm. Richard Harrison legal advice. I cannot but doubt that begun in 1934 under Cordell Hull and Truly could be appointed NASA Ad- there are any number of solicitors in the administration of President Roo- ministrator. In 1991, Congress, once Ottawa who provide advice to Amer- sevelt after the calamity of the Smoot- again, passed a waiver of the law re- ican firms on trade matters between Hawley tariff of 1930. The World Bank was duly estab- quiring that only a civilian may be ap- the United States and Canada. We, lished. The International Monetary pointed head of the Federal Aviation after all, have enjoyed a free trade Fund was duly established. The Inter- Administration so that Maj. Gen. Jerry agreement for nearly a decade and Ralph Curry could be appointed FAA more and have been the closest eco- national Trade Organization fell afoul, Administrator. nomic partners for a century and more. came to grief, if you will, in the Senate I would also like to say specifically The capacities that Ambassador Finance Committee. And so it was a with respect to Ambassador Barshefsky Barshefsky brings to this job are formi- matter of some institutional satisfac- that as Deputy USTR, she has been ex- dable to the point of being dazzling. tion to the committee in the 103d Con- empt from the prohibition in the Lob- She is a master of the subject and has gress to report out the legislation in bying Disclosure Act. She has been a capacity for advocacy of the Amer- which we joined, as had been nego- forthcoming in providing information ican position and American interests tiated, the Uruguay Round, the World to the Committee on Finance about the that is surely unequaled in our time. Trade Organization to succeed the Gen- nature of her work while in private The chairman referred to one of her eral Agreement on Tariffs and Trade practice. predecessors, Carla Hills, who was which had a much more limited, al- Moreover, in response to a question equally distinguished in this manner. though indispensable, role in the period from me at her nomination hearing, There has not been a more dramatic that followed our rejection of the ITO. the Ambassador stated that she had example of American diplomacy—be- And now we have the World Trade Or- never lobbied the U.S. Government on cause we are talking about relations ganization. behalf of a foreign government or a for- between nations—at its finest. When The terms on which you enter this eign political party. the much-announced, much-proclaimed agreement and have membership in So under these circumstances, and in agreement on telecommunications last this organization require an economy the interest of moving her nomination year found the other nations unwilling and economic practices very much dis- as expeditiously as possible, the entire to make the kind of reciprocal agree- parate, very much at a distance, if that Senate Committee on Finance agreed ments that we required which were in is the correct term, from those prac- that a waiver was appropriate in this our interest and where there were tices and that economy which we ob- case and voted unanimously for the times when negotiators from any coun- serve in the People’s Republic of China. joint resolution. Therefore, I hope that try, including our own, would settle for The terms on which entry can be ne- all Members of the Senate will also less than what might be appropriate in gotiated are going to be complex and agree that the waiver is in the best in- order to get an agreement, Ambassador crucial. And we need a negotiator who terest of confirming this nominee who Barshefsky did no such thing. Charlene can say no. The one thing Beijing needs clearly enjoys broad bipartisan support Barshefsky did no such thing. She to understand is that they will be and has already demonstrated that she walked out of the conference, only to across the table, or at a round table, in is eminently qualified to serve in that come back in the recent weeks with a Geneva with a negotiator who can say position. triumphant telecommunications agree- ‘‘No, period.’’ Other than that, I think Mr. President, I reserve the remain- ment of the very highest importance to prospects for a successful, perhaps der of my time, and I yield the floor. this country. staged, entry are good. It certainly

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1951 should not be dismissed. But it must be ments with the President, that may these negotiations may determine understood we are not going to reach later be modified by Congress. So I do whether China becomes our largest ex- agreement for agreement’s sake, and to believe it’s necessary that Congress port market or our biggest competitor. that end we have confirmed in the U.S. grant fast track authority to the Presi- The stakes are extremely high for Senate the appointment of a U.S. dent. American farmers. Trade Representative who can say, But fast track is a significant delega- That’s why I’m concerned that some no—will do, has done. tion of power. So its crucial that Con- members of the Clinton administration So, Mr. President, I have the great gress carefully tailor this delegation in want to let China into the WTO at any honor to join with our chairman in this order to accomplish its goals. And it’s cost. So I took the liberty of asking unanimous action of the Committee on important that the President, in car- both Secretary of State Albright and Finance in reporting to the floor this rying out this delegation, negotiate Ambassador Barshefsky about the proposal for a waiver just to be on the within the parameters of the authority terms of China’s entry. I want to quote safe side of the legal question that granted to him. from their answers in order to get their might arise—and will not when we are Herein lies the problem. Congress and opinions on the public record. finished today—and also, of course, the the President often have different ideas Secretary Albright said, nomination of the Ambassador which of what should be included in trade We have requested that China make sig- will follow in executive session. agreements. This administration has nificant commitments to liberalize its agri- I see my colleague from Iowa is on made it clear that they want the au- cultural trading regime, including reforming its state trading system, making substantial the floor. Mr. President, I yield the thority to negotiate on labor and envi- ronmental issues under the fast track tariff cuts, eliminating unjustified sanitary floor. process. But most of us Republicans and phytosanitary measures, and binding its The PRESIDING OFFICER. Who subsidy levels. yields time? don’t believe that these issues should be part of trade agreements. She also stated: Mr. GRASSLEY addressed the Chair. If China is to join the WTO, we will need to The PRESIDING OFFICER. The Sen- So Congress has not given the Presi- dent fast track authority since 1994. have a commercially acceptable protocol ator from Iowa. package of commitments by China to open Mr. GRASSLEY. Mr. President, I And our foreign trading partners now doubt the desire of the United States its markets in-hand before we will agree to yield myself 15 minutes from the time China’s accession. That means real market on our side. to lead on trade issues. We are being access for U.S. goods and services, including The PRESIDING OFFICER. The Sen- left by the wayside. For example, after agriculture. ator is recognized. 3 years of NAFTA we are beginning to Then I asked Ms. Barshefsky to com- Mr. GRASSLEY. Mr. President, see very positive results. Through the ment on Secretary Albright’s state- would you please notify me when I third quarter of 1996, for instance, ex- ments. She said, have used 14 minutes, because I want 1 ports to Mexico just from my State of I fully agree with the two above state- minute on the Hollings issue as well. Iowa are up over 34 percent. The three ments. China’s WTO accession can only Mr. President, I rise today to speak NAFTA nations are now the world’s occur on commercially meaningful terms. on the nomination of Ms. Charlene largest trading bloc. And it’s time to And, just as you quote Secretary Albright, Barshefsky as United States Trade begin looking at expanding this free that means market access for our goods, trade area to other nations in the services and agriculture to the fastest grow- Representative. Ms. Barshefsky has ing economy in the world. served as acting USTR since April 1996. Western Hemisphere. But this cannot happen without fast Mr. President, I am pleased with the So we are all familiar with her work. I way that both Ambassador Barshefsky have personally worked with her and track. So I implore Ms. Barshefsky to negotiate with Congress in good faith and Secretary of State Albright re- her staff on several issues in the past sponded to my questions. I hope this year. And I had the opportunity to to achieve fast track. Let’s put aside our partisan differences. And let’s re- will continue to be the policy of their watch her in Singapore, at the WTO agencies. ministerial, negotiate the Information member that trade is the focus of these agreements. The United States cannot I understand that it is very impor- Technology Agreement. Based on her tant to integrate China into these mul- job performance and her international continue to insist on addressing other issues within the context of trade tilateral organizations. I have always reputation as a strong advocate for agreements. believed that we can encourage change U.S. interests, I am prepared to sup- Issues such as environmental and in China more effectively if we engage port her nomination today. labor standards are very important. them economically. But we cannot sac- Mr. President, the next 4 years will But there are avenues other than trade rifice the interests of American work- be crucial for U.S. trade policy. We are agreements that ought to be pursued to ers and farmers by allowing China to beginning our fourth year under the influence the behavior of other coun- subsidy their industries while keeping North American Free-Trade Agreement tries. And the expansion of trade, their markets closed. and third year under the World Trade itself, with another country can be an So I will continue to monitor very Organization. The U.S. Trade Rep- effective inroad for making change. closely the ongoing negotiations with resentative must closely monitor the So let trade agreements stand on China. And I encourage Ms. Barshefsky implementation of these agreements to their own. They are difficult enough to to continue to take a hard line on this ensure they are working to open mar- negotiate without taking on the weight issue. I’m reminded of a meeting that I kets to American exports. of these other issues. I’ll have more to had with Ms. Barshefsky in Singapore FAST-TRACK NEGOTIATIONS say on fast track as negotiations when we were attending the WTO min- The USTR will also serve as Presi- progress with the administration. isterial meeting. Since it was reported dent Clinton’s point person in several CHINA’S ENTRY INTO THE WTO in the local press, I don’t think I’m key negotiations. First, she will have Mr. President, I hope that Ms. breaching any confidences by repeating to negotiate with Congress on fast Barshefsky does not have to spend all it here in the Senate. track authority. As you know, Mr. of her time negotiating with Congress. There was a meeting of the Quad na- President, fast track means that Con- She also faces very critical negotia- tions, which is the United States, Can- gress grants to the administration its tions on admitting China as a member ada, Japan, and the European Union, authority to negotiate trade agree- of the World Trade Organization. These concerning China’s entry into the ments. Once an agreement is reached, negotiations could affect the U.S. trade WTO. The local Singapore newspaper it must be ratified by Congress within balance for decades. I am reminded of reported that Minister Leon Brittan of a specified period of time and is not Japan’s entry into the General Agree- the European Union argued that bring- subject to amendment. ment on Tariffs and Trade in the 1950’s. ing China into the WTO was so impor- Fast track is necessary because Con- It seems that we are still paying for tant that conditions of entry should be gress, alone, has the constitutional au- lowering the standards to let Japan relaxed. The Japanese minister dis- thority to enter into trade agreements. into the GATT. agreed very strongly with this posi- But as a practical matter, other na- In the area of agriculture trade, tion. And apparently Ms. Barshefsky tions are reluctant to negotiate agree- which is very important to my State, concurred with the Japanese minister.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1952 CONGRESSIONAL RECORD — SENATE March 5, 1997 I repeat this incident just to point the ‘‘shining star’’ of our trade bal- more responsive and effective on ag out that there are different views on ance. issues. So I am willing to defer to her this issue. Many nations will seek to As most sectors continue to run judgment and her right to hire her own treat China with ‘‘kids gloves.’’ So it is trade deficits, our farmers continue to staff. I will, however, be overseeing her crucial that the United States play a produce food that the entire world performance on these issues. leadership role in assuring that our in- wants to buy; 1996 was another record CONCLUSION terests are protected. year for agricultural exports, totaling Mr. President, I have discussed sev- NAFTA EXPANSION over $60 billion. This resulted in a eral issues that I believe President A third area of negotiations that trade surplus in agriculture goods of Clinton and his nominee for USTR, could be significant in the next 4 years $26.8 billion. Which is the largest sur- Charlene Barshefsky, must lead on in is the expansion of the North American plus of any sector. Since our total the next 4 years. The last 2 years were Free Trade Agreement. President Clin- trade in merchandise suffered a $187.6 a disappointment for those of us who ton promised back in 1992 that Chile billion deficit in 1996, agriculture is believe in the benefits of international would become a part of the NAFTA. truly a shining star. trade. The likes of Pat Buchanan and But the lack of fast track authority But that isn’t to say we can’t do bet- the AFL–CIO called the shots on trade has undermined this promise. Now, ter. The Uruguay Round agreement, for the 1996 Presidential candidates. Chile has moved ahead and signed a ratified by Congress in 1994, was really The focus was on lost jobs and compa- free trade agreement with Canada. And the first step in opening up global nies moving offshore. they have also become an associate trade for agriculture. That agreement The press ignored the multitude of member of Mercosur. not only lowered tariffs and quotas for stable, high-paying jobs that trade has This is a good example of what hap- ag products. It also addressed nontrade created in this country. And they ig- pens when Washington fails to lead. barriers, such as unjustified health and nored the benefits of free trade to the The rest of the world moves on without safety concerns. consumers of this country. Let’s not us. And the consequences are very real The agreement’s sanitary and forget that tariffs are simply a tax im- in terms of U.S. jobs and standard of phytosanitary provisions mandate the posed on goods that consumers buy. living. use of sound science when setting The President and Ms. Barshefsky Let’s just take Chile, for example. health and safety standards for im- must use their positions as leaders to Chile has the potential to become a ports. No longer is protectionist gov- articulate the benefits of free trade. very important market for United ernment policy or politics supposed to Tell the American people how workers States agricultural exports. Over the decide whether a certain product is al- and farmers benefit from free trade last 10 years, the Chilean economy has lowed into a country. Sound, scientific policies. Tell them how much con- grown at an average rate of 6.5 percent standards must be used. sumers save on their groceries and and real per capita income is up 50 per- Not surprisingly, these provisions are clothing bills because of free trade. Ar- cent. And since 1984, poultry consump- the subject of several current disputes. ticulate your vision for expanding eco- tion has risen 60 percent, pork con- The European Union’s ban on U.S. beef nomic opportunity in this country by sumption over 45 percent and beef con- and their failure to certify our meat selling our products overseas. Leader- sumption over 30 percent. packing plants for export are just two ship is sorely needed. The United States currently supplies examples. And there are many more. President Clinton, I believe you have most of the feed grain Chile uses to The Clinton administration must vig- chosen the right person in Charlene support their livestock production. But orously enforce these important provi- Barshefsky. But you will ultimately be this market could be put in jeopardy. sions with our trading partners. We measured by your willingness or failure Chile is increasingly turning to neigh- can’t continue to allow other nations to lead the American people toward a boring countries with whom they have to breach their trade agreements in brighter future in a global economy. preferential trade agreements to sup- order to keep out our agricultural Mr. President, I would also like to ply agricultural products. So the goods. say a brief word on the Hollings United States’ failure to lead on trade The stakes have never been higher. amendment. It seems to me that Sen- has a real impact in terms of lost mar- Our farmers have become more depend- ator HOLLINGS is really concerned with kets and lost opportunities. ent on world markets for their income. a fundamental question that we all I also ask the President and Ms. The revolutionary farm program en- must answer. That is, what is the rela- Barshefsky to begin taking a hard look acted last year begins to lessen the tionship between Congress and the at other nations in the Western Hemi- Government’s role in agriculture. The President in making trade policy. In sphere for NAFTA expansion. Brazil result is that, according to the U.S. De- other words, does the President have and Argentina have already moved partment of Agriculture, up to 31 per- the authority to enter into inter- ahead and formed their own customs cent of all farm income will come from national agreements, that change U.S. union, the Mercosur, with Paraguay foreign markets by the end of the dec- law, without congressional consent? and Uruguay. And the economies of the ade. I don’t know too many farmers Despite the debate that you will hear Caribbean nations have been hard hit who can afford to give up 31 percent of today, the answer to this question is by the increased trade between Mexico their income. relatively simple. Under our Constitu- and the United States So they would Beyond our current disputes, the tion, the President only has the au- like to enjoy NAFTA status. next round of agricultural negotiations thority that Congress has granted to This administration needs to articu- at the WTO are set to begin in 1999. Ms. him. During the fast track debate, late its vision of how free trade should Barshefsky will be a key player in which I hope we’ll have this year, Con- proceed in the Americas. Soon. Or it these negotiations. That is why I was gress will define the limits of the Pres- will be the United States who is left concerned about recent staffing deci- idential authority on trade matters. out in the cold. sions at the U.S. Trade Representa- But let’s be clear about one thing. AGRICULTURE tive’s office. The President does not have the au- One last issue I would like to discuss, On the morning of Ms. Barshefsky’s thority to change U.S. statutory law Mr. President, is agriculture. In his confirmation hearing at the Finance without congressional action. That is State of the Union Address, President Committee, the Journal of Commerce why Congress had to approve imple- Clinton mentioned that the United ran a very disturbing article. The arti- menting legislation after the President States is now exporting more goods cle pointed out that the top two agri- signed the NAFTA agreement and the and services than at any other time in culture staffers at USTR had been re- Uruguay round agreement in recent its history. I am glad he did that, be- placed with a political appointee with years. The President did not have the cause those of us in Washington need no agriculture experience. authority to unilaterally consent to to articulate the benefits of free trade. I had a telephone conversation and these significant changes in U.S. law. I was disappointed, however, that the an exchange of letters between Ms. That is why I believe this amend- President failed to acknowledge the Barshefsky. She is convinced that ment is unnecessary. But I also think contribution of agriculture, which is these decisions will make her office it could be dangerous. The amendment

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1953 is drafted so broadly that it could sub- and in agriculture, which is the largest full time, as we enter a new era in ject an agreement to congressional ap- industry in my State of Montana, we tackling very difficult new issues. proval every time it affects a minor saw exports hit $60 billion last year. I might remind us that for most of regulation or administrative practice. (Ms. COLLINS assumed the chair.) the 1980’s and 1990’s, trade policy re- In my opinion, this would result in Mr. BAUCUS. I might say, too, volved around three major areas: in the very few trade agreements being con- Madam President, that the people un- Uruguay round of GATT, NAFTA, and summated. Our trading partners would derstand this. Last year they came our market access problems with never have the assurance they were ne- from all over Montana to a trade con- Japan. These areas still remain on our gotiating an agreement that would be ference I hosted on how we can estab- agenda. We have to monitor the WTO. recognized by Congress. lish better trade relationships with and We have to monitor the NAFTA close- Look at just what we have accom- engage more deeply with China. People ly. And our trade imbalance with plished in the last few months, negoti- came from all over our State. I was Japan remains our largest bilateral ating the Informational Technology amazed at the success of that con- deficit yet, although it is being sur- Agreement and the Telecommuni- ference. The Chinese Ambassador was passed by that of China. cations Agreement. These landmark there, and also, I might add, we invited It is only fair to say that after a agreements will result in thousands of our U.S. Ambassador to China, the great deal of hard work from Charlene high-paying jobs being created in the Honorable Jim Sasser—he very much Barshefsky and the USTR staff that United States. I don’t believe these wanted to come but was unable because our performance with Japan has im- agreements would have been possible of a last moment conflict. proved markedly. Counting goods and given the chilling effect of the Hollings I might also remind us that Amer- services, exports are up from $75 billion amendment. ican imports also hit a record of about to over $100 billion last year; quite an So I urge my colleagues to vote ‘‘no’’ $949 billion last year. We imported improvement. As important as these issues are, we on the Hollings amendment and then more than we exported. That may not now must look ahead to two new stra- vote to confirm Charlene Barshefsky. be so good. But the point is that we as tegic challenges in trade. First is It’s time to focus on moving this coun- Americans are competing more than whether to negotiate new trade agree- try ahead by negotiating new agree- ever before against foreign competi- ments, and, if so, what should they be? ments and opening new markets to tion, whether it is in heavy industry, For example, the administration has U.S. exports. high technology, or agricultural serv- pledged to work toward a hemispheric Mr. MOYNIHAN. Mr. President, I ices. It all underlines the importance trade agreement and also to pursue yield 10 minutes to the distinguished of trade in general and also the impor- market access in Asia through the Senator from Montana. tance of being sure that we have a top- Mr. BAUCUS. Mr. President, I thank notch trade negotiator to make sure it Asia-Pacific Economic Cooperation my very distinguished colleague from is all fair. And we certainly have that Forum, and through bilateral agree- ments. New York. Not only the residents, citi- in Charlene Barshefsky. These are broad, long-term, impor- zens, and voters of the State of New What has she done? For my State of tant goals. Much about them remains York, but the rest of us in the country Montana, I’ll mention one thing in par- ticular. She and her predecessor, Mick- to be decided. But the administration are very fortunate to have in the U.S. ey Kantor, worked vigorously to en- will soon ask for fast-track authority Senate the Senator from New York. He force agreement with Canada to re- to make any serious steps forward, and has added so much to our under- strict the deluge of grain coming down it is clear that Americans have a right standing of historical issues, cultural to the United States as near as 1993 and to expect greater market access from issues, and institutional memory. I 1994. Wheat ordinarily received in the these countries. just want to thank the Senator very United States was about 1.35 million I look forward, as we all do in the much for all he has done for us. metric tons of Canadian grain. In those Senate, to hearing from the adminis- Mr. MOYNIHAN. I thank the Senator 2 years it rose to about 2.4 million met- tration as to what specific agreement from Montana. ric tons. It depressed prices in the it envisions and how these agreements Mr. BAUCUS. Mr. President, I sup- will address contentious issues like port strongly the nomination of American markets and violated, frank- ly, a tentative, implicit agreement treatment of trade-related labor and Charlene Barshefsky as U.S. Trade with the Canadians. environmental issues. When that is Representative. Why is that? Although I must say I was very impressed with available, in principle, I believe the the Senator from South Carolina raises the vigor and enthusiasm with which Congress should grant fast-track au- very important issues—and I underline Charlene Barshefsky helped negotiate thority. And I will work with Ambas- that; they are extremely important—I that agreement. Because of her work, sador Barshefsky and the administra- think we can’t wait. We have very im- Montana farmers got some confidence tion as to what the terms are, of how portant trade issues facing us at the that trade would be fair. broad the scope is, so that we have in moment. We have a superb candidate in Second, exports of beef. This is the the Congress a very good mutual agree- Charlene Barshefsky, who is awaiting first time in American history—in ment and partnership with the admin- confirmation. I believe we have no al- 1996—when we exported more beef than istration as we work together to de- ternative, no choice, but to do the we imported. A lot of beef producers in velop these trade agreements. right thing. And the right thing is to the United States are concerned and The second is the integration of for- get on with it, let her get on with the have the impression that we import merly Communist countries into the job, and let’s confirm her as our USTR. more than we export. That has been world trade system. China, Russia, At the appropriate time, at a later mo- true in the past. Ukraine, Vietnam, and other post-Com- ment, we will take up the issues raised I might say that about 5 years ago we munist nations make up about a third by the Senator from South Carolina, imported about 2 million pounds of beef of the world’s population. They are and they are very important issues in- and we exported only about 75,000 large producers of manufactured prod- deed. pounds, in that magnitude. But in the ucts, primarily commodities, and agri- I might remind everyone that our last 5 years it has reversed, and for the cultural goods. All hope to enter the international trade is growing dramati- first time, in 1996, we exported more. WTO, the World Trade Organization. cally. When Congress created the posi- We exported more beef than we im- Their reform efforts are commend- tion of USTR just over 20 years ago, ported because, again, of the vigorous able but remain incomplete. Most of imports and exports, together, made up efforts of our trade negotiators in these countries retain pervasive sub- only about one-eighth of the U.S. econ- opening up foreign markets for Amer- sidies, poorly developed price systems, omy. Today, international trade makes ican products. and close links between government up nearly a full third of our economy. I am sure other folks from around and business which make them particu- That is a dramatic increase, from one- the country understand and have simi- larly challenging candidates for WTO eighth to one-third, in just over 20 lar stories that they can pass on to us. membership. Weak accession protocols years. Last year, exports of goods and She has done a terrific job. And we could make market access very dif- services reached a total of $835 billion, need someone of her caliber on the job ficult for years to come and could also

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1954 CONGRESSIONAL RECORD — SENATE March 5, 1997 promote dumping in a wide range of Before we vote on the nomination, final provisions of the Uruguay Round areas. Madam President, we must first vote on subsidies. He did not like it. Yet, he China is the largest of these coun- on the amendment to Senate Joint worked with the administration on the tries and the most immediate can- Resolution 5 offered by the distin- implementing legislation and at the didate for WTO membership—not to guished Senator from South Carolina, end of the day chose to give the agree- mention that it is the world’s largest Senator HOLLINGS. The amendment re- ment his support. country and the fastest growing large quires that any trade agreement that Disagreement with provisions of final economy. So its WTO access will have in effect amends U.S. law must be ap- trade agreements is going to happen. enormous consequences in its own proved by Congress. Clearly, with 435 Members of the House right, and it will very likely serve as a I must say that this amendment puz- and 100 Members of the Senate, there model for others. zles me. Trade agreements to which the are going to be disagreements with the I will have more to say on this sub- United States is a party and the call administration. To minimize these, we ject at a later date. But the USTR and for changes to U.S. law, have no force individually or in groups make sure the Congress must be very careful and very of law whatsoever until implementing administration is aware of our views. rigorous. China and other WTO appli- legislation is passed by Congress. Con- We go to the STR during the negoti- cants must meet international stand- gress always has the final say. ating sessions and say this is what I am ards not only on traditional tariff and The USTR takes pains to ensure that concerned with. This is what we are quota issues but also on national treat- Congress is involved in every step concerned with in my part of the coun- ment, trading rights, transparency, along the way in these trade negotia- try. And at the end of the day the subsidies, and safeguards against im- tions. As a member of the Finance agreement may or may not be satisfac- port surges, and many other issues. On Committee, I can personally testify to tory. If we feel strongly enough that it our side of the table, we must be will- the fact that the USTR provides reg- is not satisfactory, we are free to ex- ing to address the question of perma- ular and, indeed, frequent—indeed, in press our views, that is, vote against nent MFN status for these countries if abundance, a plethora of—briefings on the proposal, vote against the treaty. we are to gain the full benefit of their all of the international discussions. So my conclusion, Madam President, WTO membership. During 1995 and then again in 1996, is twofold. First, it simply is not clear These are difficult and complex the USTR provided literally hundreds what this amendment would do if it is issues, but I am confident that Ambas- of briefings to Members and more than enacted. Any legislation with an un- sador Barshefsky is the right person to a dozen committees on ongoing trade clear meaning simply, in my judgment, take them on. I can think of none bet- issues and responded to approximately is not wise legislation to enact. ter. She is terrific. She is intelligent, 200 congressional requests for informa- Second, if the amendment is to ex- press displeasure with a particular pro- tough, capable, and she has proven her- tion every month. That is what was vision of, say, the telecommunications self one of the best public servants going on in the USTR’s office. The Fi- agreement, we already have in place a America has, and we need her on the nance Committee staff is briefed ex- system that takes into account such job. haustively, as are the staff involved views. I might also note that I under- I support the nomination and I sup- with several other committees. Any stand from the leadership of the Fi- port the waiver to make it possible. Member who has an interest in a par- nance Committee if this amendment, And while the Senator from South ticular issue can request personal brief- the Hollings amendment, is adopted, it Carolina has an amendment which ings. That has been the process, not would cause the House to reject consid- raises a very serious and very impor- only during this administration but eration of Senate Joint Resolution 5, tant issue, that is one which we should during prior administrations. It is the thus placing the Barshefsky nomina- bring through the normal committee right process. Trade, obviously, is not tion in jeopardy. process. It should not stop the nomina- solely the privilege of the executive So this is a grave matter, Madam tion of Charlene Barshefsky. We need a branch but a responsibility conferred President. It is in the very clear inter- tough negotiator. We have her right be- by the Constitution on the Congress. est of the United States to put in place Do Congress and the administration fore us. We need her now in Geneva. as soon as possible a strong and effec- always agree? Of course not. Indeed, if During this week WTO is attempting to tive special trade representative. In the disagreement is strong enough, the negotiate terms with China. We need other words, Ms. Barshefsky. She needs administration runs the risk of Con- her there to negotiate for us. to be on the job. We have a lot of trade gress flatly rejecting the arguments in I warmly endorse her nomination. I discussions and disputes that are ongo- question. Thus, in this process is the hope my colleagues will do the same. ing. Charlene Barshefsky is an abso- built-in enforcement mechanism that Thank you, Madam President. lutely superb advocate and we need to Mr. ROTH addressed the Chair. constantly keeps individuals in touch. get her confirmed. So for these reasons, The PRESIDING OFFICER. The Sen- So the amendment that is being pro- I am supporting the nomination and ator from Delaware. posed puzzles me. It does seem to reit- the waiver bill and cannot support the Mr. ROTH. Mr. President, I yield 7 erate current process but there are two proposed amendment. So I urge my col- minutes to the distinguished Senator words that give me pause. The words leagues to reject the Hollings from Rhode Island. ‘‘in effect.’’ What exactly does ‘‘in ef- amendment and to vote for the The PRESIDING OFFICER. The Sen- fect amend or repeal statutory law of waiver and for the nomination of ator from Rhode Island is recognized. the U.S.’’ mean? Is it a reference to Charlene Barshefsky. Mr. CHAFEE. I thank the Chair, and regulations? Regulations are issued I thank the Chair. I thank the distinguished manager of under statutory authority. Is it a ref- Mr. MOYNIHAN addressed the Chair. this bill. erence to the administration officials The PRESIDING OFFICER. The Sen- Madam President, I wish to express changing the law by themselves? But ator from New York. my wholehearted support for Ambas- the Constitution does not allow that. Mr. MOYNIHAN. I yield 5 minutes to sador Barshefsky. In my dealings with Only Congress can change U.S. law. the distinguished Senator from Flor- her over the years, I have found her to So it seems that the amendment may ida, a member of the Committee on Fi- be a skilled and certainly an expert be aimed at the recently concluded nance, who is one of those who voted trade negotiator, who has worked tire- telecommunications agreement and at unanimously to report this nomination lessly on behalf of U.S. interests. I certain provisions of that agreement. to the floor. have no doubt as to her integrity and As I have outlined, the process of nego- The PRESIDING OFFICER. The Sen- her commitment to this job. And I be- tiating trade agreements takes into ac- ator from Florida is recognized for 5 lieve that view is shared by every sin- count the individual views of Members minutes. gle member of the Finance Committee, of Congress. The end results of trade Mr. GRAHAM. Thank you, Madam all of whom have worked closely with agreements may include certain provi- President, and I thank the Senator her. Thus, I urge my colleagues to sup- sions that some of us do not like. I can from New York. port her nomination with a strong clearly remember Senator Danforth of I urge the Senate to move expedi- show of support in the upcoming vote. Missouri was not too pleased with the tiously to confirm Ambassador

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1955 Charlene Barshefsky as U.S. Trade confirm her nomination today. We need tion 207(f)(3) of title 18, United States Code) Representative. She is the right person a timely decision. We have already in any trade negotiation, or trade dispute, at the right time for the very difficult paid a cost for the delay that has oc- with the United States may not be appointed task she will be undertaking. curred to date. The U.S. trade position as United States Trade Representative or as I also urge the immediate passage of a Deputy United States Trade Representa- is weakened when it does not have a tive.’’. Senate Joint Resolution 5, without confirmed U.S. Trade Representative (c) EFFECTIVE DATE.—The amendments amendment, to extend the waiver for representing our interests. We need to made by this section shall apply with respect the position which Ambassador transfer that weakness into the to an individual appointed as United States Barshefsky currently holds as Deputy strength of steel that will come when Trade Representative or as a Deputy United U.S. Trade Representative. This waiver Charlene Barshefsky represents the States Trade Representative on or after the as granted under Senate Joint Resolu- United States as our Ambassador, as date of enactment of this Act. tion 5 applies only to Ambassador the U.S. Trade Representative. (b) United States Trade Representative; Barshefsky. It does not change the un- Deputy United States Trade Representa- I thank the Chair. tives. derlying law, nor does it create a prece- Mr. ROTH. Madam President, I yield (1) The Office shall be headed by the United dent for future waivers. This waiver de- 3 minutes to the Senator from Colo- States Trade Representative who shall be ap- serves to pass without amendment. The rado. pointed by the President, by and with the ad- merits of the issue which are being The PRESIDING OFFICER. The Sen- vice and consent of the Senate. As an exer- raised by my friend and colleague from ator from Colorado is recognized for 3 cise of the rulemaking power of the Senate, South Carolina deserve to be heard, but minutes. any nomination of the United States Trade I would submit that this is not the Mr. ALLARD. I thank the Senator Representative submitted to the Senate for forum for the resolution of those ques- from Delaware for yielding me some confirmation, and referred to a committee, shall be referred to the Committee on Fi- tions. There will be other more appro- time. nance. The United States Trade Representa- priate times which will not entail en- Madam President, today we must de- tive shall hold office at the pleasure of the dangering the expeditious confirmation cide to vote in favor of a waiver to President, shall be entitled to receive the of Ambassador Barshefsky to her im- allow a very competent and worthy same allowances as a chief of mission, and portant post. candidate to be the new U.S. Trade shall have the rank of Ambassador Extraor- As Senator MOYNIHAN has just stated, Representative or to vote to uphold dinary and Plenipotentiary. when Ambassador Barshefsky’s nomi- current law. I have decided to uphold (2) There shall be in the Office three Dep- nation was presented to the Finance current law. It must be made clear that uty United States Trade Representatives Committee, her record was carefully who shall be appointed by the President, by I do not doubt the competency and and with the advice and consent of the Sen- examined. The result of that examina- ability of Ambassador Barshefsky to ate. As an exercise of the rulemaking power tion was a unanimous vote by the com- faithfully serve as the next U.S. Trade of the Senate, any nomination of a Deputy mittee in favor of her confirmation. Representative. She has done a tremen- United States Trade Representative sub- Ambassador Barshefsky was referred to dous job as the Deputy USTR and has mitted to the Senate for confirmation, and at the confirmation hearing as one of proven herself to be a competent public referred to a committee, shall be referred to the most qualified, seasoned trade ne- servant. the Committee on Finance. Each Deputy gotiators ever to be offered for this po- The law we are asked to waive is not United States Trade Representative shall sition. As Deputy and Acting U.S. some arcane law that has been on the hold office at the pleasure of the President and shall have the rank of Ambassador. Trade Representative, she has been an books for decades which may have (3) Limitation of appointments. outstanding advocate of the trade in- served us well in the past but is a law A person who has directly represented, terests of the United States of Amer- that was passed only 2 years ago. The aided, or advised a foreign entity (as defined ica. She has proven herself to be a bril- Lobbying Disclosure Act of 1995 was a by section 207(f)(3) of Title 18) in any trade liant negotiator. The Finance Com- very important piece of legislation negotiation, or trade dispute, with the mittee and, I hope soon, the Senate as that opened the doors to the public to United States may not be appointed as a whole will recognize these qualities. see who is attempting to influence our United States Trade Representative or as a Ambassador Barshefsky has dem- elected officials. Section 21 of the act Deputy United States Trade Representative. onstrated a consistent focus on opening specifically states that no person who Mr. ALLARD. Madam President, global markets, opening those markets has represented a foreign entity may while I regret that I have to vote through bilateral and multilateral be appointed as a U.S. Trade Rep- against Ambassador Barshefsky’s wor- trade agreements that increase export resentative or the Deputy U.S. Trade thy nomination, I believe as lawmakers opportunities for U.S. businesses and Representative. we must not only strive to enact the creates jobs for U.S. workers. She has Madam President, I ask unanimous best laws but also to obey not only the played an instrumental role in solving consent to have printed in the RECORD letter of the law but also the spirit of trade disputes with Japan, China, and section 21 of the Lobbying Disclosure the law. Why do we pass laws if the numerous other nations on behalf of Act and from the United States Code first time they become problematic, we the United States. section 2171(b). decide to grant a waiver. In the last Madam President, I was recently in There being no objection, the mate- couple of months, I have heard too Florida with a group of representatives rial was ordered to be printed in the many politicians say that it was out of of important agricultural interests who RECORD, as follows: necessity that they bend the law or ig- were looking forward to going to China LOBBYING DISCLOSURE ACT OF 1995 nore the spirit of the law or assume that it may not be illegal, and then with Ambassador Barshefsky to open SEC. 21. BAN ON TRADE REPRESENTATIVE REP- markets for American agriculture in RESENTING OR ADVISING FOREIGN promise it will not happen again. My that tremendous nation of population. ENTITIES. solution to this dilemma is to follow That is an example of the aggressive (a) REPRESENTING AFTER SERVICE.—Section the law or repeal it. pursuit of opportunities for American 207(f)(2) of title 18, United States Code, is While in the other body, I voted for industry and agriculture that has amended by— the Lobbying Disclosure Act and have (1) inserting ‘‘or Deputy United States hallmarked Ambassador Barshefsky’s Trade Representative’’ after ‘‘is the United consistently promised my constituents performance in her current positions States Trade Representative’’; and that I will work hard to enact congres- and will do likewise when she is con- (2) striking ‘‘within 3 years’’ and inserting sional reform. In this vein, I cannot firmed as the U.S. Trade Representa- ‘‘at any time’’. turn my back on them or on the law tive. (b) LIMITATION ON APPOINTMENT AS UNITED that I fought hard to enact. I under- It is a pleasure to give this out- STATES TRADE REPRESENTATIVE AND DEPUTY stand why many will vote for this standing nominee my unqualified en- UNITED STATES TRADE REPRESENTATIVE.— waiver because Ambassador Barshefsky dorsement. I have no question that Section 141(b) of the Trade Act of 1974 (19 would make a tremendous USTR, but I U.S.C. 2171(b)) is amended by adding at the Ambassador Barshefsky will be an out- end the following new paragraph: must regretfully vote no and only hope standing representative and leader at ‘‘(3) LIMITATION ON APPOINTMENTS.—A per- that this waiver granting procedure the U.S. Trade Representative office. I son who has directly represented, aided, or doesn’t start a bad precedent for the urge my colleagues to join in voting to advised a foreign entity (as defined by sec- future. In conclusion, I am voting

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1956 CONGRESSIONAL RECORD — SENATE March 5, 1997 against the Hollings amendment and on a false assumption, implying a prob- proval of any and every trade agree- the waiver. lem that simply does not exist. The ment the President negotiates, even The PRESIDING OFFICER. Who amendment gives the erroneous im- those not calling for actual changes in yields time? pression that the President is cur- U.S. statutory law. This could immo- Mr. ROTH. Madam President, I yield rently able to implement international bilize our ability to negotiate trade myself such time as I may use on the trade agreements calling for changes in agreements, even on relatively minor hour for the resolution. U.S. statutory law without the passage issues, as Congress would be required The PRESIDING OFFICER. The Sen- of implementing legislation by Con- to approve tens, if not hundreds of such ator from Delaware is recognized. gress. That is simply not true. If a agreements. Mr. ROTH. Madam President, on Jan- trade agreement requires changes in All of these agreements would also be uary 30, 1997, the Committee on Fi- U.S. statutory law, Congress must fully amendable. The result would be nance unanimously reported without enact the legislation to implement to shackle our capacity to conduct any amendment Senate Joint Resolution 5, those changes. Congress must pass that trade policy. the waiver resolution for Ambassador legislation in order for the agreement Because the language in the amend- Charlene Barshefsky’s appointment to to have full force and effect with re- ment is so vague, I also fear that it serve as U.S. Trade Representative. As spect to the United States. could call into question the legal sta- I said earlier, I strongly support Am- A good example is the OECD Ship- tus of previous agreements that have bassador Barshefsky’s nomination. building Subsidies Agreement, a trade not been fully implemented, including Therefore, in order to expedite the ap- agreement that was negotiated in 1994. the recently concluded Information pointment of this nominee, it is my Congress has been unable to pass legis- Technologies Agreement. This land- considered opinion as chairman of the lation to implement the changes in mark agreement was completed pursu- Finance Committee, that the waiver U.S. law called for under that agree- ant to authority provided to the Presi- should remain clean and should not be ment. As a result, the agreement has dent by Congress under the Uruguay amended. no force and effect with respect to the Round Agreements Act, and currently Now, Senator HOLLINGS has intro- United States. Absent congressional needs no further congressional action duced an amendment to the waiver. passage of implementing legislation, in order to be fully implemented. How- This amendment would require con- there is nothing the President can do ever, that situation could change under gressional approval of any trade agree- to implement the agreement on his the Hollings amendment, which would ment that ‘‘in effect’’ amends or re- own. seriously jeopardize this historic agree- peals U.S. statutory law. Now, what if Congress and the Presi- ment to provide a market opening for While I am convinced that as a gen- dent have a legitimate disagreement U.S. companies worth $500 billion a eral matter the Senate should not add about whether a particular trade agree- year. amendments to the waiver, I have a ment calls for a change in U.S. law? My The amendment appears to be driven, number of concerns specifically about understanding is that this issue is the in part, by Senator HOLLINGS’ concerns Senator HOLLINGS’ amendment, which basis of Senator HOLLINGS’ concern— about the telecommunications agree- lead me to oppose the amendment most that the President can act to supersede ment recently negotiated at the World strongly and to urge my colleagues to laws passed by Congress. Trade Organization. First of all, this is not a situation vote against it. My understanding is that Senator My primary concern is that passage where trade agreements are somehow HOLLINGS believes the commitments of the Hollings amendment will seri- deemed to be treaties, with the full the administration makes in the tele- ously jeopardize Ambassador force of law, but which, unlike a trea- communications agreement will Barshefsky’s nomination. I have a let- ty, the President is able to implement change current U.S. telecommuni- ter from Chairman Archer of the House without Congressional approval. Trade cations law without Congress having Ways and Means Committee stating agreements are executive agreements. the opportunity to pass implementing that the House would view the Hollings And the simple fact is that if there is legislation. provision as a revenue measure that, an inconsistency between an executive I would like to point out that others under the origination clause of the agreement and a statute, the statute disagree with Senator HOLLINGS’ view Constitution, must originate in the prevails. In other words, a law passed that this agreement will change cur- House of Representatives. As such, by Congress remains on the books in rent U.S. law. Senator MCCAIN, chair- Chairman Archer informs me that he full force and effect and cannot some- man of the Senate Committee on Com- will invoke the constitutional preroga- how be trumped by an executive agree- merce, Science and Transportation, tive of the House to refuse to consider ment or any other action by the Presi- Senator BURNS, along with Congress- the waiver resolution for Ambassador dent. man OXLEY, vice-chair of the House Barshefsky if the Hollings amendment In my opinion, the language in the Telecommunications Subcommittee, is added. Hollings amendment requiring that wrote a letter to the President express- I ask unanimous consent that Chair- Congress approve any trade agreement ing their view that no implementing man Archer’s letter be printed in the that ‘‘would in effect amend or repeal’’ legislation is necessary. RECORD following my remarks. U.S. statutory law also suffers from The PRESIDING OFFICER. Without several other defects. I ask unanimous consent that this objection, it is so ordered. It is vague, subjective, leaves unde- letter also be printed in the RECORD (See exhibit 1.) fined what ‘‘in effect’’ means, and does following my remarks. Mr. ROTH. I want to emphasize one not specify who determines whether a The PRESIDING OFFICER. Without point to those that support the law is effectively changed by a trade objection, it is so ordered. Barshefsky nomination. Regardless of agreement. (See exhibit 2.) whether one supports the Hollings Trade agreements cannot effectively Mr. ROTH. In conclusion, Madam amendment on the merits, the House change or repeal U.S. law. An agree- President, we must keep focused on the will blue slip it. This means that not ment may call for actual changes in task at hand—fulfilling the Senate’s only will the House kill the Hollings U.S. statutory law, in which case, as I constitutional prerogative with respect amendment, but the Barshefsky waiver have already explained, Congress must to Ambassador Barshefsky’s nomina- along with it. pass implementing legislation in order tion. We should not be bogging this This fact alone is ample reason to for it to have force and effect with re- nomination down with extraneous and vote against the Hollings amendment. spect to the United States. Or an controversial matters, such as the Hol- In addition to this procedural con- agreement does not call for such lings amendment. Therefore, I urge my cern, I also have substantive problems changes, in which case it can be imple- colleagues to join me in voting to table with the HOLLINGS amendment. I admit mented without congressional action. the Hollings amendment, which will be this amendment may have some super- Indeed, the language in the Hollings made at the appropriate time. ficial appeal. Nonetheless, it is com- provision is so vague and ill-defined, Madam President, I reserve the re- pletely unnecessary because it is based that it could require congressional ap- mainder of my time.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1957 EXHIBIT 1 We wish to state our support for USTR’s In fact, the point was just made by COMMITTEE ON WAYS AND MEANS, negotiators. We appreciate their work to my distinguished colleague from New U.S. HOUSE OF REPRESENTATIVES, promote free trade in goods and services. We York, since 1934, they have been work- Washington, DC, February 13, 1997. believe that a freer flow of capital is a log- ing. I have been on the Communica- Hon. WILLIAM V. ROTH, Jr., Chairman, ical extension of this policy. Artificial limits on international investment only harm U.S. tions Subcommittee of the Commerce Committee on Finance, U.S. Senate, Dirksen Committee for 30 years, and I watched Senate Office Building, Washington, DC. firms by denying them access to foreign cap- DEAR CHAIRMAN ROTH: I am writing in ref- ital and foreign markets. it develop over that 30-year period. erence to legislation that would waive the Thank you for your consideration on these When we had a majority on our side of application of section 141(b)(3) of the Trade thoughts. the aisle, I introduced the formative Act of 1974, as amended by the Lobby Disclo- Yours truly, legislation to revise that 1934 Commu- sure Act, with respect to the nomination of JOHN MCCAIN, nications Act with the initiative that Ambassador Charlene Barshefsky as United Chairman, Senate would allow the trade representative to States Trade Representative. As you know, I Committee on Com- merce, Science and negotiate an international tele- fully support Ambassador Barshefsky’s nom- communications agreement. ination and urge the Senate to pass quickly Transportation. MICHAEL G. OXLEY, I am totally familiar, during the past legislation permitting her confirmation so 3 to 4 years, with what they are talking that the House may then consider it prompt- Vice Chairman, House ly. Subcommittee on about because this is a Senator who At the same time, I am concerned that the Telecommunications, has been working with the White House legislation passed by the Senate may include Trade and Consumer and with the trade representative, be it provisions that contravene the origination Protection. Ambassador Kantor or now Ambas- clause of the U.S. Constitution, which pro- CONRAD BURNS, sador Barshefsky. vides that revenue measures must originate Chairman, Senate Sub- It was Ambassador Kantor who said committee on Com- in the House. Specifically, I understand that the law needed amending. I already had the Senate may be asked to consider par- munications. that letter printed in the RECORD. Now ticular provisions, such as one suggested by Mr. MOYNIHAN addressed the Chair. they say there is no law to be amended. Senator Hollings, which would change the The PRESIDING OFFICER. The Sen- Heavens above. In fact, the distin- manner in which Congress considers trade ator from New York is recognized. agreements and legislation having a direct Mr. MOYNIHAN. Madam President, I guished Senator from Iowa, Senator effect on customs revenues. Although I rise simply to endorse, with fullest GRASSLEY, comes in here and says it is strongly support Ambassador Barshefsky’s conviction, the statement of the chair- totally unnecessary. He said, ‘‘Actu- nomination, I would have no choice but to ally, my provision, which is constitu- insist on the House’s Constitutional preroga- man in this matter, and to emphasize, if I may be allowed, that executive tional’’—that is all it does, is cite a tives and to seek the return to the Senate of fundamental of the Constitution that any legislation including such a provision. agreements can never override statute. I look forward to working with you on this If they do, they are null and void, and you have in order to amend or repeal a matter. the courts will so hold. statute. It is not a regulation, as the With best personal regards, For us even to suggest that that Senator from Rhode Island tried to BILL ARCHER, might be possible would be to intro- read into it. Chairman. duce into our governmental adminis- It is very simple, very clear, not EXHIBIT 2 trative arrangements matters of ambi- vague, not vague at all. It is the con- CONGRESS OF THE UNITED STATES, guity and doubt and uncertainty that stitutional provision of three readings Washington, DC, February 11, 1997. would have the capacity to incapaci- in the House, three readings in the The PRESIDENT, tate what has turned out to be an ex- Senate, and signed by the President. The White House, Washington, DC. When they say it is unnecessary, just traordinarily successful procedure in DEAR MR. PRESIDENT: We write regarding look at the letters just inserted in the inaccuracies in correspondence you report- world trade. RECORD. I refer to the letter of the Sen- edly have received from a few of our col- It has taken us 60 years—63 from the ator from Arizona, Senator MCCAIN, leagues regarding the World Trade Organiza- Reciprocal Trade Agreements Act of the Senator from Montana, Senator tion (WTO) telecommunications talks and 1934—to reach a point where we are the BURNS, and Congressman OXLEY on the restrictions on international investment. world’s largest trading nation and lead- As you are aware, officials of the United House side, and they say: States Trade Representative (USTR) are ing the way in these matters in the world and hugely respected for that We firmly believe that the administration hard at work negotiating a market-opening possesses the authority to negotiate an agreement in the WTO Group on Basic Tele- and known to have the capacity to ne- agreement without implementing legisla- communications (GBT). Questions have been gotiate when the Congress gives that tion. raised concerning the Administration’s au- authority to the President. The subse- Now, heavens above, we know Am- thority to negotiate an agreement lowering quent negotiations are executive agree- barriers to international investment. bassador Kantor thought so and asked ments. If any part of them should, by that it be changed. I ask unanimous It has been stated that USTR sought inadvertence or intention, be contrary amendments to the Telecommunications Act consent to have printed in the RECORD of 1996 to clarify legal limits on foreign in- to present statutory law, they are null section 310(a) and section 310(b) of the vestment in U.S. telecommunications firms. and void. That proposition must never Communications Act of 1934. This is incorrect. As the authors of the Sen- be put into question as I fear this mat- There being no objection, the mate- ate and House foreign ownership provisions, ter before us might do. rial was ordered to be printed in the we wish to state for the record that we were I yield the floor and thank the Chair. RECORD, as follows: acting on our own initiative and that no Ad- The PRESIDING OFFICER. Who SEC. 310. [47 U.S.C. 310] LIMITATION ON HOLDING ministration official requested that we legis- yields time? AND TRANSFER OF LICENSES. late in this area. Any discussions we had Mr. HOLLINGS addressed the Chair. (a) The station license required under this with the Administration on these issues The PRESIDING OFFICER. The Sen- Act shall not be granted to or held by any came at our request. ator from South Carolina. foreign government or the representative We firmly believe that the Administration Mr. HOLLINGS. I thank the distin- thereof. possesses the authority to negotiate an (b) No broadcast or common carrier or agreement without implementing legisla- guished Chair. Madam President, it is difficult to aeronautical en route or aeronautical fixed tion. Indeed, the correct legal interpretation radio station license shall be granted to or of the relevant statute is that private for- really determine the position of our held by— eign firms are free to invest in American distinguished leadership on the Fi- (1) any alien or the representative of any firms without restriction unless ‘‘the [Fed- nance Committee. In one breath, they alien; eral Communications] Commission finds say it is unnecessary and, in the next (2) any corporation organized under the that the public interest will be served by the breath, they say it is going to really laws of any foreign government; refusal or revocation’’ of a telecommuni- ruin $500 billion in trade. Then they (3) any corporation of which more than cations license. To allege that implementing one-fifth of the capital stock is owned of legislation is necessary is to misinterpret come back and say the statutory law record or voted by aliens or their representa- the law. Indeed, it is the very prevalence of pertains and talk at length about how tives or by a foreign government or rep- such misreadings that caused us to attempt they have worked over the years with resentative thereof or by any corporation or- to reform the ownership rules. Ambassador-designate Barshefsky. ganized under the laws of a foreign country;

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1958 CONGRESSIONAL RECORD — SENATE March 5, 1997 (4) any corporation directly or indirectly work on the House side. And they did Well, that is not what the Wall controlled by any other corporation of which request, where they say no request Street Journal stated on May 20 of last more than one-fourth of the capital stock is after requesting us. We talked to them year. And I quote: owned of record or voted by aliens, their rep- back in 1995 several times. We knew ex- resentatives, or by a foreign government or U.S. negotiators did pull back from a representative thereof, or by any corporation actly what they had in mind. We tried telecom deal at the 11th hour, but not be- organized under the laws of a foreign coun- to comply. But we did not change the cause Clintonites were queasy about inking try, if the Commission finds that the public law. another market opening pact in an election interest will be served by the refusal or rev- Now we have leading Senators, the year. Administration trade officials would ocation of such license. chairman of our full committee and have been delighted to trumpet a telecom the chairman of our subcommittee, deal to counter mounting U.S. skepticism Mr. HOLLINGS. Madam President, about the WTO’s accomplishments, but they let’s just read 310(a): saying that the administration pos- walked away from the table after industry The station license required under this Act sesses the authority to give away 100 executives and leading Republican and shall not be granted to or held by any for- percent in violation of sections 310(a) Democratic Senators balked. eign government or the representative there- and 310(b). That is why it is necessary. Madam President, that is exactly of. . . To be told now on the Senate floor that what happened on the telecom deal. And in section (b) starting off: the Constitution, that we all take an And they mention the capacity deal No broadcast or common carrier license— oath to support and protect—it has a out there in Singapore. One would say And I jump down to four: chilling effect that is out of the whole how she worked so hard. Well, she gave . . . any corporation directly or indirectly cloth. To come now and say it is vague away the store, without talking to the controlled by any other corporation of which is out of the whole cloth. You cannot capacity manufacturers, specifically more than one-fourth of the capital stock is make language any more categorical. I she gave away 4,000 jobs in the Caro- owned of record or voted by aliens, their rep- did not say ‘‘regulation,’’ like they lina’s. resentatives, or by a foreign government, or tried to read and make for confusion. It representative thereof, or by any corporation The Japanese make these capacities, is just as plain as can be. but when she did away with the 9.6-per- organized under the laws of a foreign coun- I have talked with many of the Mem- cent tariff, you have the weakness of try. bers, and asked if they wanted it the yen combined with the tariff It is just as plain as can be and very changed in any way. And they said phased out. The existence of Kaymet in simple, totally disregarded by Ms. they did not see how you could vote Greenville, SC, I remember that. And I Barshefsky. We kept telling her, we against it. Well, the way they vote asked the officials there, and they were wrote the White House letters, we ad- against it is to come up and now argue never contacted. Just at the last monished, ‘‘Wait a minute, your prede- the capabilities of what I was going to minute they agreed to it. Fine, you can cessor came before us, testified, asked hear again. that it be changed,’’ and then we see in Heavens above. When we had Ambas- get when you give away the store in ca- the letter by these three gentlemen the sador Carla Hills, who is now gone in pacities, when you give away your phrase ‘‘as authors of the Senate and representation I guess, we had to put broadcast entities. House foreign ownership provisions.’’ the provision in law. I am glad to see Under this agreement—I want to False. Mr. OXLEY, yes, at the request of the Senator from Colorado on the floor make it crystal clear—Nippon Tele- the administration. On the House side, saying that he did not agree with that phone & Telegraph can come in here it put in there the 100-percent owner- waiver. That was the Dole waiver that and buy CBS, ABC, NBC. ship which could be negotiated away. we are talking about. The Hollings I talked earlier with one Senator. He That was never agreed to. waiver, which is on the appropriations was talking about the opportunity that I authored the reciprocity provision bill, that is in relation to the special Castro seems to do business with the with the snapback condition on the trade or U.S. Trade Representative, Canadians. He could get the Canadians Senate side. So I have to correct the that you shall not engage in the rep- to come in and buy a station down in distinguished chairman of my com- resenting of foreign interests in trade Miami and really turn the particular mittee and the chairman of our sub- for a 5-year period, which applies of Senator from Florida into an upset committee, Senators MCCAIN and course to our distinguished friend, condition. He is wanting to get into BURNS. As the authors, this is very Mickey Kantor. China and we have to move in a hurry. misleading to the particular body here But when we had Carla hills, every I have a good eye here today, but the and the other Senators reading that. one of these negotiators—the Finance Senator from Florida wants to be able And then reading further, ‘‘No adminis- Committee leadership comes with to have any foreign entity come in, tration official requested that we legis- again the ‘‘Dragon Lady, Dragon Castro or otherwise, Qadhafi, the whole late in this area.’’ These gentlemen Lady,’’ ‘‘Oh, man, tough, tough, kit and caboodle of the rascals around were not intimate to the negotiations tough.’’ He did say, the Senator from the world or any foreign country. They or members of the conference com- New York, that Ms. Barshefsky was delight now in coming in and buying mittee that actually did the work. formidable to the point of being daz- these that we have been trying to pro- Let me refer to, on August 4, 1995, the zling. Well, I will agree. She has been tect. CONGRESSIONAL RECORD. Page 8451 is dazzling. And this Senator has not. That is why the Members would not the page. I am quoting Mr. BLILEY, the That is exactly the point I am trying agree. They held fast. I am speaking on chairman of the Commerce Committee to make. behalf of the majority of the U.S. Sen- on the House side and the chief nego- I met with Ms. Barshefsky, and she ate, 95 votes, if you please. We ap- tiator for the House membership. I did have a dazzling approach of ‘‘I want proved that. And that was in discussion quote: to work with you. I want to work with up until the last minute, and they Additionally, we have addressed the issue you. I want to work with you.’’ As I would not yield. So there it is. They do of foreign ownership or equity interest in do- have stated earlier, ‘‘Madam, I want so well on these other agreements. mestic telecommunications companies. The you to work with the law, not me. Just Let us see, Madam President, how new language reflects the hard work of adhere to this law.’’ they have done on this particular one. Messrs. DINGELL and OXLEY, who sponsored We have had this in dispute. We have If you believe the U.S. Trade Rep- the proposal in committee, the administra- resentative, world commerce would tion and myself. I must observe, Mr. Chair- had this in discussion. We have had man, that the foreign ownership issue is the this in negotiation with Members and come to an end unless we continue to only matter on which the administration of- Senate leadership in the Congress, negotiate these one-sided agreements. fered specific language to the Commerce leadership in the White House. And the But the truth of the matter here is Committee. And I believe this administra- law is the law. It has not been changed. Ambassador Barshefsky, in announcing tion’s concerns have been largely resolved. And they go there and can justify the successful conclusion of this Madam President, there it is. We further that the distinguished nego- telecom negotiations stated—and I made the official RECORD. The adminis- tiator is so tough she just walked away quote: tration, after they did not get their de- on the telecommunications negotia- This agreement represents a change of pro- sired result on the Senate side, went to tions. found importance.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1959 U.S. companies now have access to distance. So the total liberalization of moving in are moving in like nearly 100 percent of 20 telecommuni- the U.S. marketplace, what incentive gangbusters and dumping back here cations markets. Now, unfortunately, was that liberalization? What incentive under NAFTA free trade arrangements Madam President, nothing has do these countries have to liberalize into the United States. changed. Nothing has changed at all. their particular markets any further? I could go on further. I see some here Once again, the trade representative None whatever. None whatever. We who want to talk, but I will complete has obtained inadequate concessions. have given away the store. this thought now, because we had the A review of those agreements—not I told you in the very beginning classic case for free trade with an these laudatory press releases—reveals about clothing, and they keep export- emerging country, and the Secretary of that the market openings are limited, ing the jobs faster than we can possibly Treasury, in particular, the Deputy at best, or nonexistent, at worst. create them —300,000. We were going to Secretary of Treasury, Lawrence Sum- While the United States has agreed create 200,000, but we have exported al- mers, said, this is really it, we really to permit complete foreign ownership ready, lost 300,000 jobs in textiles are getting free trade now. And every- of our broadcast properties and U.S. alone. And we can go further. body is going to get, I think they said, telecommunications providers, our The FCC recently issued an inter- about $1700 for everybody, and we were major trading partners have severely national notice of proposed rule- going to have everybody better off. restricted our access to their most making. This particular rulemaking Well, Lawrence Summers, he is the well-established and entrenched com- would force foreign providers to lower one that sold this thing to the House panies. USTR claims that Australia, their prices. However, many of the en- memberships and the Senators. Since Italy, Japan, France, New Zealand, and forcement mechanisms contained in that time, he has now appeared on Spain have all agreed to permit owner- this particular rulemaking are viola- Thursday, January 16, in the Congress, ship or control of all telecommuni- tions of the MFN, most favored nation and I quote from the Wall Street Jour- nal of that particular date. ‘‘By many cations providers. Yet, you take a clos- provisions. Different benchmarks based measures, most Mexicans are worse off er look and you see there are severe on the gross domestic product, denying than they were before the financial cri- foreign ownership restrictions still re- access to providers from countries who sis,’’ Deputy U.S. Treasury Secretary maining in place for Vodafone and refuse to meet the benchmarks, and Lawrence Summers conceded. Telstra in Australia, with Stet in Italy, granting waivers to those who restruc- The Members do not have a sense of KDD and Nippon Telephone and Tele- ture more quickly are all integral parts history, understanding, or apprecia- graph in Japan—you cannot own any of of these benchmark policies, but illegal tion. What happened is that a million it—Telecom NZ in New Zealand, and likely to be challenged, no doubt in Mexicans have lost their jobs since Telefonica in Spain, France Telecom in the WTO. NAFTA has passed. Wages have fallen France that prevents U.S. providers So the agreement on telecom can by a third. Mexico’s external debt from owning the controlling interests have perverse effects on the price sys- reached $150 billion, higher than that or no interest at all in these tele- tem they are trying to tell us about during the debt crisis back in 1982. The communication giants. now, telling the competing countries bold visionary man of the year, Carlos U.S. companies have access so long we have a question there with respect Salinas—that is right, in December, as they are not interested in getting to ownership and MCI, and with respect after we voted in November, they made into the best and most sophisticated to Sprint, so they stay quiet. You do him the man of the year. Now he is liv- and competitive companies. They could not find them all coming in here. And ing in exile in Ireland and you cannot come in and buy AT&T, not just the they are being told, ‘‘Hush now, at the catch him. He is the man of the year. companies like GTE, or whatever. They FCC we will help you with the access This is the kind of nonsense that we can come in and buy the broadcast places in these international long-dis- have to put up with. If we want to go properties, which is most disturbing to tance calls, and we are going to get through the same act, same scene, this particular Senator. something done.’’ They will never get dragon lady, tough, and everything Now, going further, Madam Presi- it done. Watch this MFN provision and else, it makes a sorry agreement, sells dent, Korea, Thailand, Malaysia, India, watch the World Trade Organization. out the store. And we call that Hong Kong, the Philippines, and Can- These are the kind of promises that progress, and we have to create jobs, ada permit no foreign control for facil- continually come up when we have one and education, education, education is ity-based providers. The fastest grow- of these agreements. Just remember, the solution. Well, Madam President, ing and most important markets in the Madam President, the promises they like I say, if they read one thing, they world are closed tight as a drum. Take made with NAFTA. You have to real- ought to read the book, ‘‘One World, the Korean market. Foreign individual ize, we must learn from experience. As Ready Or Not’’ by Bill Crider. They shareholding in Korea Telegram is lim- George Santayana said, those who dis- will get an education on where we are, ited to 3 percent—3 percent. We gave regard the lessons of history are because the author spent 2 years going away our most powerful negotiating doomed to repeat them. We should see around the world, as well as in the tools, just for 3 percent. When you give the history of this wonderful U.S. trade United States, talking to the various away 100 percent, there is no more ne- agreement that they had with NAFTA. executives and quoting them at that gotiations, you are through. Ask Sen- At that particular time, they said if we particular time. You can’t understand ator Dole—been there, done that. It is fail to pass NAFTA, one, Mexico would some of the various provisions. over with. You got no more negotiating face economic collapse; two, immigra- I think, since I have the opportunity authority or any negotiating tools. tion would increase; three, drugs would to present them, we ought to under- Or take Canada. The Canadians pro- flow freely; four, 200,000 new jobs would stand, in country after country, the vide for no foreign control of facility- not be created; five, the U.S. exports precious rules of international trade. based providers—none. Yet, under this surplus would disappear; six, Asian in- In India, for example, when General agreement, Bell Canada can purchase vestors would move into Mexico to Motors wanted to sell its European- any United States-based provider it take advantage of the growing mar- made Opal, the price of admission was wishes. What a wonderful agreement. kets. That is why they said we had to a radiator cap factory. So GM moved What a wonderful agreement they are approve NAFTA. the factory from Britain. In Korea, to all bragging about. We have approved NAFTA, and this sell fast trains, the French agreed to The other developing markets also is exactly what happened—exactly subcontract the assembly to the Kore- include severe restrictions. Brazil has what happened. Mexico is in economic ans. In China, AT&T agreed to manu- liberalized ownership restrictions only collapse; immigration has increased; facture advanced switching equipment with regard to seller, satellite, and the drugs flow freely down there; as a quid pro quo for wiring Chinese nonpublic services. Mexico has re- 200,000 jobs have not been created; the cities. In Australia, if your sales are tained ownership restrictions on all U.S. exports surplus has disappeared. above a certain threshold, you must types of services except seller. Poland We had a $5 billion surplus. It is now a negotiate with the Government on an retains foreign ownership restrictions $16 billion deficit. The Asian investors agreement locating research and devel- for wireless, international, and long who were going to be prevented from opment in Australia. For production,

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1960 CONGRESSIONAL RECORD — SENATE March 5, 1997 you must export 50 percent of what you next month and say, ‘‘Let’s just talk ator from South Carolina quiet they import, and it must have 70 percent about what we got in, not what we will buy the TV stations and run them local content. At least 33 electronics spent, just one side of the ledger.’’ If because under the agreement they can. companies from Japan, Europe, and the you had a CPA that made up your re- There is no question about it. They can United States have agreed to do that. turn that way, you would fire him. But own these broadcast properties. According to an official from Motor- that is constantly, constantly, con- Down to the basic fundamental in- ola, ‘‘If you don’t cooperate with the stantly the way we look at the returns volved, just a couple of weeks ago we Australians, they have the statutory with respect to international trade. had Washington’s Farewell Address authority to exclude you from bidders’ What really happens is, yes, while we here. The very Founding Father talked lists and deny regulatory permits for in the United States are the most pro- about the fundamental of the Hollings products.’’ ductive industrial workers, whereas we amendment. I can almost quote word Well, Madam President, it’s not just have improved productivity, and for word. He said, If, in the opinion of out there in the Pacific rim, where the whereas we are, for example, in my the people, the modification or dis- control—Friedrich List kind of control State, an exporting State—I was just tribution of the powers under the Con- —trade that works, that builds them down at a Presidential Exporting Coun- stitution be in any particular wrong, up. Right this minute, one-half of the cil meeting in Greenville, SC, and we then let it be changed in the way that world’s savings is in the country of are proud of it—the imports far and the Constitution designates, for while Japan. While they are talking about away outdistance the exports. usurpation in the one instance may be the yen and the devaluation of it and In the last 15 years, before we got to the instrument of good it is the cus- while they are talking about the bank- last year, there has been an average of tomary weapon by which free govern- ing difficulties, watch what Edmund over $100 billion a year deficit, imports, ments are destroyed. Finkleton said in ‘‘Blind Side.’’ Come in the balance of trade. That means we That is the line of this particular the year 2000, while they are a bigger have bought from the foreigners $1.5 amendment. We are giving it away. We manufacturing country, with 120 mil- trillion more than we have sold to proceed by a fifth column. We are talk- lion, compared to our 260 million and them. But how do you get that through ing about jobs but we are exporting the vast natural resources that we to the Finance Committee where they them faster. We are importing even have in the United States, they already just casually go on and on talking faster the finished goods. We are weak- outproduce us. They will have a larger about dragon ladies and what a won- ening the democracy. The middle class economy and gross domestic product— derful agreement we have? What, is disappearing. And they are all hol- that little country of Japan. Why? Madam President, is the merchandise lering ‘‘Whoopee. The economy is good, They control it. As Friedrich List says, deficit—I say ‘‘deficit’’; I repeat ‘‘def- and let’s give some millions so that the wealth and strength of a nation, if icit’’—in the balance of trade last year? politicians of one group can investigate you please, is measured not by what The merchandise deficit in merchan- politicians of another group about poli- they consume, but what they produce. dise trade was $187 billion. tics.’’ That is the most asinine thing Akio Marita went on further—I was at (Mr. BROWNBACK assumed the that you have ever seen. But that is a forum with him about 16 years ago up chair.) where they give all the time. I can see in Chicago. We were talking about the Mr. HOLLINGS. Now, we made some some impatience. They don’t want to Third World emerging nations, and he money off of loans, insurance, and serv- listen about international trade, and commented: ‘‘The emerging country ices. So the overall deficit was quoted the trade war. No. They don’t want to has to develop a manufacturing capac- to be $114 billion. But I am looking at listen about that. But they want to ity in order to become a nation state.’’ that industrial backbone. I am looking talk about independent prosecutors After we talked a few minutes, he at that economic strength. I am look- and investigators. I would give millions pointed to me and said, ‘‘Senator, that ing at that world power trying to con- to the Federal Election Campaign world power that loses its manufac- tinue being a world power. I am real- Commission. They are bipartisan. Let turing capacity will cease to be a world izing more and more every day that the them investigate, no holds barred. I power.’’ 7th Fleet and the atom bomb don’t would give even more millions to the We have gone, in a 10-year period, count anymore. They just don’t regard Department of Justice. Let them inves- from 26 percent of our work force in it. You are not going to use a nuclear tigate, no holds barred, for any viola- manufacturing down now to 13 percent. attack; we all know that. I was be- tion of the law. We are back to Henry Ford. Henry mused when they moved the fleet into But mind you me. It seems like we Ford said that he wanted his workers the Taiwan Strait, because, in 1966, I have learned enough here from that to be able to purchase the article they was on an aircraft carrier, the Kitty Whitewater thing. We went through an were producing. Madam President, Hawk, up in the Gulf of Tonkin, and we exercise. We had 44 hearings, millions today, middle-America workers, not could not stop 20 million North Viet- of dollars wasted, and time and every- having those manufacturing jobs, can’t namese. They didn’t have planes and thing, all hoping to get on TV and in- afford the car. They can’t purchase it. choppers and all this equipment that vestigate each other. Now they want to We are losing our middle class, all we had. But we have already tried that start up this session and talk about bi- along, if you please, competing with aircraft carrier. I wondered how an air- partisanship, and not talking about ourselves. craft carrier or two in the Taiwan what is eroding the democracy itself in Over 50 percent of what we are im- Strait was going to stop 1.2 billion Chi- this country. I say that because when I porting, if you please, is U.S. multi- nese when it could not stop a mere 20 talk about the middle class, Chesterton nationally generated. The U.S. multi- million Vietnamese. Come on. Money wrote that the strength of this little nationals are the fifth column in this talks. The economic strength, and in democracy here in America was that trade war that we are in. They are in the world trade councils and otherwise we had developed a strong middle class. behind the lines gutting us here in the in this global trade war that we are We are headed, if you please, the way Congress, working through the special in—we are unilaterally disarming. We of England. That is what they told the trade representative, trying to take are giving away capacity. That capac- Brits after World War II. ‘‘Don’t worry. away the authority under the Constitu- ity agreement in Singapore was where Instead of a nation of brawn, you will tion to make laws and otherwise regu- they manufacture them in Japan but be a nation of brains. Instead of pro- late foreign commerce. That is the au- Japan very cleverly got the Europeans ducing products, you will provide serv- thority of the Congress, and that is the to bring the pressure on us. And we ices; a service economy. Instead of cre- reason we have that particular amend- walked away and said it was a good ating wealth, you will handle it and be ment. But we always talk, and I lis- agreement. And I have lost 4,000 jobs in a financial center.’’ And England has tened to the distinguished President my State. I am losing thousands of jobs gone to hell in an economic hand bas- when he talked about trade. He only with NAFTA. I am looking around. ket. You have the haves and the have- mentioned exports. Now I am seeing in telecommuni- nots, London is no more than an I want to challenge anybody to go to cations—what effect is this going to amusement park. You go there, and the a CPA when they do their tax return have? I guess in order to keep the Sen- Parliament is talking the same kind of

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1961 extraneous nonsense that we are en- have come into South Carolina; thanks but also will perform the much-needed gaged in, and investigating each other to the enlightened leadership of the function of enlightening the American and not getting on with the serious State of South Carolina, including the people and our colleagues as to what matters of truth in budgeting. Let’s Senator from South Carolina who has free trade is all about, its effects, and, have it. I am going to talk to a group attracted them. by the way, the effects of protec- here in just a minute, and I hope we Mr. HOLLINGS. Will the Senator tionism and restraint of trade. can get to them so that we can bring yield? I do oppose the amendment offered the record out about truth in budg- Mr. McCAIN. I would love to yield. by Senator HOLLINGS, and I will at the eting. But I just listened for the last 45 min- appropriate time offer a motion to And truth in trade negotiations utes to the Senator from South Caro- table. This amendment, in my view, agreements and trade—an agreement lina, and, as much was I would like to jeopardizes Ms. Barshefsky’s nomina- has been made, not a treaty. They in- hear from him again, I have to go to tion. The chairman of the House Ways sist that you don’t have to come back another meeting. I apologize. But if the and Means Committee, Mr. ARCHER, to the Congress itself when they amend Senator from South Carolina would has conveyed to Finance Committee the law, and they are in 100-percent promise me to be brief, I will be glad to Chairman ROTH that the House will re- agreement of foreign ownership. There yield to him for a brief answer. ject the amendment and thereby kill is no question about that. They just Mr. HOLLINGS. We are very proud the nomination of a very qualified indi- say it is not necessary while other that the Senator from Arizona has vidual. Members say it is necessary. I thought been to the showcase area up there in I share with my colleagues the posi- that we ought to clarify once and for the Piedmont. But down there we have tion of the President of the United all our duties here, and have a clarion that situation where there is 11 percent States. Mr. President, I think it is very call, or a wake-up call, on this most unemployment in Richland, 14 percent important. I ask unanimous consent important issue. in Williamsburg and Barnwell, and, 12 that the statement of administration percent over in Marlborough. So we I reserve the remainder of my time. policy be printed in the RECORD. The PRESIDING OFFICER. Who have the haves and have-nots. There being no objection, the mate- I am very proud. I made the first trip yields time? rial was ordered to be printed in the to Europe where we have 100 German Mr. ROTH. Mr. President, I yield 20 RECORD, as follows: plants, 50 Japanese plants now. And I minutes to the distinguished Senator STATEMENT OF ADMINISTRATION POLICY from Arizona. am very proud that I instituted the S.J. RES. 5—WAIVER FOR USTR APPOINTMENT Mr. MCCAIN. Mr. President, I will technical training which makes us most productive at BMW. We thank the (ROTH (R) DE, AND MOYNIHAN (D) NY) not be able to use that time because I The Administration strongly supports the have to go to another meeting. I appre- Senator, very much, for his visit. I would be glad to show him the other enactment of S.J. Res. 5, which would au- ciate the time and the courtesy of the thorize the appointment of Charlene Senator from Delaware, Senator ROTH. parts that I am also worried about. Barshefsky as the United States Trade Rep- But I would like to use 20 minutes be- Mr. MCCAIN. Mr. President, I would resentative. cause my friend from South Carolina say to the Senator from South Caro- When the Senate Considers S.J. Res. 5, covered a broad variety of issues, some lina that I did travel the entire State. Senator Hollings’ amendment relating to the of which I assure my colleague from His point is well made that it is not a President’s long-standing authority to carry out trade agreements may also be consid- South Carolina we will be addressing in totally even economy. He can come to my State and find out that in the ered. The Administration strongly opposes hearings in the Commerce Com- southern part of my State it is as high the Hollings amendment, which would effect mittee—the results of NAFTA, the re- as 35 to 40 percent unemployment in a major change in trade agreement imple- sults of free trade; perhaps some of the menting procedures with immediate and the city of Nogales. But the overall reasons why unemployment is at its harmful effects on U.S. consumers, firms, economy is good. It is better, in my lowest in America. The last quarter it and workers. The Hollings amendment would view, because of free trade, and again was just downgraded to 3.9 percent hinder, delay, and, in some cases, jeopardize the enlightened policies of seeking and GNP growth—the reason Americans fi- agreements that greatly serve the Nation’s obtaining foreign corporations who interests. nally in the lower middle-incomes are come in and give high-paying jobs. seeing increases; why this economy is HARMFUL EFFECTS OF THE HOLLINGS I also, by the way, have had the AMENDMENT the envy of the world; why it is that chance to go to Hilton Head and free trade has played such an impor- The Hollings amendment could require Charleston and some of the other areas congressional approval of every trade agree- tant role. that are doing extremely well. But ment that might be construed to require a I had the pleasure—the distinct there is no sense in going through a change in U.S. law. The amendment is un- pleasure, I say to my friend from South road map of the depiction of the State necessary to assure that the Executive Carolina—of spending some time in his of South Carolina which is a lovely and Branch is conforming to congressional man- State. There happened to be an impor- beautiful State, as certainly the Sen- dates on trade negotiations, is overly bur- tant Republican primary in the last densome for both the President and the Con- ator from South Carolina well knows. gress, and could endanger the benefits to the election. It was a great privilege and But I want to repeat to him again. honor for me to get to know many of United States of some trade agreements. We will have hearings in the Commerce The overwhelming majority of trade agree- the wonderful citizens of his State. In Committee about the state of the ments that the President concludes can be— case he has not noticed, they are doing American economy, about the impact and traditionally have been—implemented very well. They are working at the of trade, where protection works and under existing statutes. If the authority to BMW plant. They are working at the where it doesn’t, and what the effects implement an agreement does no already Sony plant. They are working at all of NAFTA has been and whether we exist, then the President must seek that au- these corporations and companies that should expand NAFTA, which would be thority. If the President were to implement an agreement in a manner that is not au- have come to this terrible country of a proposal of the administration. ours which is so protectionist and so thorized by law, the courts can strike down I will say with all respect to the Sen- such actions. If the Congress disagrees with outrageous. They are coming to our ator from South Carolina, I believe the a trade agreement, it can pass legislation di- country, I am sure the Senator from members of the committee and the recting the President to implement the South Carolina has noticed. And in the American people will be enlightened by agreement in a particular way or to refrain view of the South Carolinians that I our debate because I know that the entirely from implementing that agreement. spoke to, they think it is a lot better Senator from South Carolina is well in- If a trade agreement requires a change in with the high-paying jobs at the BMW formed and holds very strong views, as statutory law, Congress along has the au- plant than at a textile mill; than do I and other members of the com- thority to make such a change. The Hollings standing in front of a loom in that kind amendment is unnecessary to clarify this mittee. I note the Senator from West point. of back-breaking, sweat labor that ex- Virginia is here, who also has his prob- However, the Hollings amendment goes isted; where they are getting higher lems within his State. much further, and the absence of hearings salaries and more benefits, thanks to So I hope the hearings we will have has precluded a full opportunity to deter- the companies and corporations that will not only have a legislative result mine precisely what the implications of the

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1962 CONGRESSIONAL RECORD — SENATE March 5, 1997 amendment are. By requiring congressional cations equipment, software * * * open the ciples championed here by many of us action whenever a trade agreement would global market for basic telecommunication for a long time. ‘‘in effect’’ change U.S. law, the Hollings services, providing enormous benefits to our Senator HOLLINGS has concluded that amendment could impose long delays on im- dynamic U.S. telecommunications industry. the recently announced telecommuni- plementing trade agreements that would Mr. President, what does the Wash- cations agreement of the World Trade otherwise bring immediate benefits to U.S. ington Post say about it? It says: consumers, firms, and workers. Moreover, Organization would change U.S. statu- The Telecommunications Deal. After 3 the vague term ‘‘in effect’’ would cause great tory law. Not only do I disagree, but as years of tough negotiations, the world’s lead- uncertainty, since the amendment leaves un- I mentioned, the Senator finds himself ing economies have reached a landmark defined who determines when an agreement on the other side of the argument with agreement to liberalize trade in tele- ‘‘in effect’’ requires a change in law and communications services. Acting U.S. Trade President Clinton. what implications arise for implementing Representative Charlene Barshefsky, who led Mr. President, I ask unanimous con- changes in regulation or administrative both sets of talks, predicted the U.S. infor- sent that written responses to ques- practice called for in trade agreements. mation technology industry will now lead tions from Senator LOTT and Senator The burdensome character of the amend- the growth of the U.S. economy as the car KERREY be printed in the RECORD. ment becomes clear when one considers that industry did 40 years ago. This wasn’t a tra- There being no objection, the mate- the Administration concluded approximately ditional agreement in which one country 200 trade agreements in the last four years. rial was ordered to be printed in the grudgingly agreed to accept textile imports, Under the Hollings amendment, any such RECORD, as follows: say, in order to gain access for its tomato ex- agreement that occasioned any change in WRITTEN RESPONSE TO QUESTIONS FROM ports. Instead, every nation involved ac- law, including technical and typically non- SENATOR LOTT knowledged the benefit to itself of liberaliza- controversial changes to our tariff schedule, TELECOMMUNICATIONS tion and deregulation of the model that the would have to be approved by the Congress. United States and Great Britain have pio- Could you please explain in greater detail The prospect of nearly continuous consid- neered. Half the world’s people have never the administration’s position that no imple- eration of trade agreements by the Congress made a phone call. Poorer countries, where menting legislation, or legislation of any also raises the possibility of delaying the most of them live, will attract the invest- kind, will be required for the telecommuni- entry into force of agreements beneficial to ment that they need only if they play by cations agreement currently under negotia- the United States. For example, the Hollings these new rules of openness and competition. tion in Geneva. amendment could greatly delay—and per- The U.S. offer will reflect our statutory ob- haps jeopardize—recent agreements that: The Washington Times: ligations. While at this time we do not be- Elminiate tariffs on 400 pharmaceutical Teleco Mania. For the second time in three lieve its implementation will require any products shipped to key markets around the months, tough minded and determined U.S. legislative changes, we are continuing to world (these tariff cuts had been widely trade negotiators under the auspices of the 2- consult with Congress on this issue. sought by our medical community because of year-old World Trade Organization have The offer allows market access to the their potential to quickly lower the costs of hammered out a multinational high tech local, long distance and international serv- producing anti-AIDS drugs and other life- trade agreement that will be immensely ben- ices markets through any means of network saving pharmaceuticals); eficial to firms and workers based in the technology, either on a facilities-basis or Cuts $5 billion in global tariffs on semi- United States and consumers worldwide. through resale of existing network capacity. conductors, computers, telecommunications The list goes on and on, Mr. Presi- The U.S. offer limits direct foreign invest- ment in companies holding common carrier equipment, software, and other information dent, of the almost universal praise of equipment (these are tariff cuts that directly radio licenses, as is required by Section 310 benefit high-technology products made by this landmark agreement that Ms. (a) and (b)(1), (2) and (3) of the Communica- some of our most highly competitive indus- Barshefsky has been able to achieve. tions Act of 1934 (the ‘‘Act’’). The offer spe- tries, and that support 1.5 million manufac- Frankly, there were a lot of pessimists cifically states that foreign governments, turing jobs and 1.8 million related services who believed that she could not do aliens, foreign corporations and U.S. cor- jobs); and that. I believe she is well qualified for porations more than 20% owned by foreign Open the global market for basic tele- the job. President Clinton referred to governments, aliens or foreign corporations communication services, providing enormous may not directly hold a radio license. Ambassador Barshefsky as a brilliant Based on Section 310(b)(4) of the Act, the benefits to our dynamic U.S. telecommuni- negotiator for our country. She is a cations industry. offer places no new restrictions on indirect If the Hollings amendment were applied to tough and determined representative foreign ownership of a U.S. corporation hold- these agreements, they would have to be sub- for our country, fighting to open mar- ing a radio license. Section 310(b)(4) allows mitted to Congress for review and approval. kets to the goods and services produced such indirect foreign ownership unless the Yet each of these agreements was negotiated by American workers and businesses. Federal Communications Commission finds under congressional authorization and in I will not go through her qualifica- that the public interest will be served by the close consultation with Congress, and each tions, Mr. President, in the interest of refusal to grant such a license. The U.S. offer enjoys overwhelming industry support. time because they are illustrious. is to allow indirect foreign ownership, up to 100%, under this provision. Mr. MCCAIN. Mr. President I will not Her foresight and depth of under- The U.S. offer permits a foreign govern- go through the whole statement of ad- standing of our country’s international ment indirectly to own a radio license, un- ministration policy except to say the trade relations are essential to our Na- less the FCC finds that such ownership is not administration strongly supports the tion’s continued economic growth. She in the public interest. Under the public in- resolution which will authorize the ap- is exceptionally qualified, and I am terest test, the FCC looks at many factors, pointment of Charlene Barshefsky as sure that the full Senate will join me such as financial and technical ability of the U.S. Trade Representative. Among in confirming her nomination to be the applicant, international agreements, na- U.S. Trade Representative. tional security concerns, foreign policy con- other things it says: cerns, law enforcement concerns and the ef- The Hollings amendment could require From financial services to Japanese fect of entry on competition in the U.S. mar- congressional approval of every trade agree- insurance to global telecommuni- ket. In the event of a successful conclusion ment that might be construed to require cations, Ambassador Barshefsky has to these negotiations, the U.S. offer will changing U.S. law. The amendment is unnec- proven herself to be a tough nego- allow the FCC to continue to apply these essary to assure the executive branch is con- tiator. For example, in April of 1996, as public interest criteria, as long as they do forming to congressional mandates on trade one of her acts as USTR, Ambassador not distinguish among applicants on the negotiations, is overly burdensome for both Barshefsky walked away from the poor basis of nationality or reciprocity, con- the President and Congress, and could endan- efforts made under the auspices of the sistent with the obligations of the General ger the benefits to the United States of some Agreement on Trade in Services. trade agreements. World Trade Organization regarding The U.S. offer maintains COMSAT’s mo- The prospect of nearly continuous consid- basic telecommunications services. She nopoly on access to INTELSAT and eration of trade agreements by the Congress made everyone come back to the table Inmarsat, as required by the Communica- also raises the possibility of delaying the and last month concluded the WTO’s tions Satellite Act (47 U.S.C. 721). entry into force of agreements beneficial to basic telecom agreement which rep- The offer does not contain any restrictions the United States. For example, the Hollings resents a change of profound impor- on licenses to land submarine cables based amendment could greatly delay—and per- tance. A 60-year tradition of tele- on the statutory authority of the President haps jeopardize—recent agreements that (delegated to the Federal Communications eliminate tariffs on 400 pharmaceutical prod- communications monopolies and closed Commission in consultation with the Sec- ucts shipped to key markets around the markets will be replaced starting in retary of State) to issue landing licenses. world * * * cut $5 billion in global tariffs on January 1998 by market opening, de- The statute permits withholding such li- semiconductors, computers, telecommuni- regulation and competition, the prin- censes to assist in obtaining landing rights

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1963 in other countries maintaining the rights or license by an alien or its representative. Sec- publishing that benefit from telecom interests of the United States and its citi- tion (b)(2) contains the same prohibition for development. zens and protecting U.S. security (47 U.S.C. foreign corporations. Section 310(b)(3) pro- This agreement is literally unprece- 35). The United States will obtain landing hibits direct ownership of more than 20% of dented. It covers over 90 percent of rights in other WTO member countries if the a U.S. corporation holding a radio license by world telecommunications revenue and negotiations conclude successfully and will a foreign government, an alien or a foreign retain its ability to protect its national se- corporation. All these prohibitions on direct includes 69 countries, both developed curity. ownership are contained in the U.S. offer. and developing. It ensures that U.S. Section 310(b)(4) explicitly allows indirect companies can compete against and in- WRITTEN RESPONSE TO QUESTIONS FROM ownership by all three—a foreign govern- vest in all existing carriers. Before this SENATOR BOB KERREY ment or its representative, an alien or its agreement, only 17 percent of the top TELECOMMUNICATIONS representative or a foreign corporation, un- 20 telecommunications markets were less the FCC determines that such ownership Last April when the parties agreed to post- open to U.S. companies. Now they have is not in the public interest. This is also re- pone the deadline for negotiations in the access to nearly 100 percent of these flected in the U.S. offer. In preparing the GBT, the U.S. offer did not reflect the statu- markets. offer, the Administration has consulted tory language under sections 310 (a) and (b) The range of services and tech- closely with Congress and FCC staff and is that the foreign ownership limitations under nologies covered by this agreement is continuing to consult on the question of im- the law apply to ‘‘foreign governments or plementing legislation and whether to mod- breathtaking—from submarine cables their representatives.’’ Does USTR intend to ify the offer. to satellites, from wide-band networks modify the U.S. offer to adhere to the statu- If USTR successfully negotiates an agree- to cellular phones, from business inter- tory language of sections 310 (a) and (b)? If ment, would there be any change or limita- nets to fixed wireless for rural and un- not, why? tion on the FCC’s use of the Effective Com- The U.S. offer will reflect our statutory ob- derserved regions. The market access petitive Opportunities test to examine the ligations. While at this time we do not be- opportunities cover the entire spec- openness of a foreign market, which it adopt- lieve its implementation will require any trum of innovative communications ed pursuant to the public interest waiver legislative changes, we are continuing to technologies pioneered by American in- test of section 310(b)(4)? consult with Congress on this issue. If the GBT concludes successfully, the FCC dustry and workers. The offer allows market access to the will continue to apply the public interest Most important, the agreement will local, long distance and international serv- test to applicants under section 214 and to save billions of dollars for American ices markets through any means of network applicants for radio licenses under section consumers. The average cost of inter- technology, either on a facilities-basis or 310. The only change that would occur would national phone calls will drop by 80 through resale of existing network capacity. be that the Executive Branch would advise percent, from approximately $1 a The U.S. offer limits direct foreign invest- the FCC not to consider reciprocity as a ment in companies holding common carrier minute on average to 20 cents per prong of the test on the basis that the U.S. radio licenses, as is required by Section 310 minute over the next several years. would have obtained substantial market ac- (a) and (b) (1), (2) and (3) of the Communica- The agreement, as I said earlier, was cess commitments from its major trading tions Act of 1934 (the ‘‘Act’’). The offer spe- widely lauded by those in the tele- partners and the vast majority of countries cifically states that foreign governments, whose carriers are likely to apply for radio communications industry. aliens, foreign corporations and U.S. cor- licenses in the U.S. Mr. President, of equal concern is the porations more than 20% owned by foreign impact this amendment would have on Mr. MCCAIN. Mr. President, the rea- governments, aliens or foreign corporations the ability of the President to nego- may not directly hold a radio license. son why I ask that is because there are tiate future trade agreements. The Hol- Based on Section 310(b)(4) of the Act, the many technical and legitimate ques- offer places no new restrictions on indirect lings amendment could require con- tions that are raised by Senator LOTT, gressional approval of every single foreign ownership of a U.S. corporation hold- Senator KERREY, and by Senator HOL- ing a radio license. Section 310(b)(4) allows trade agreement that might result in LINGS. The responses that Ambassador such indirect foreign ownership unless the any change in regulations or adminis- Federal Communications Commission finds Barshefsky made, I think, are impor- trative practice, no matter how slight that the public interest will be served by the tant to be in the RECORD. I will not the change. The overwhelming major- refusal to grant such a license. The U.S. offer take the time of the Senate to read ity of trade agreements that the Presi- is to allow indirect foreign ownership, up to those. dent concludes can be—and tradition- 100%, under this provision. The amendment, I believe, is not ally have been—implemented under The U.S. offer permits a foreign govern- only not good for America, but I be- ment indirectly to own a radio license, un- statutes that the Congress has already lieve that the amendment represents a put on the books. If the President tries less the FCC finds that such ownership is not different view of trade and how nations in the public interest. Under the public in- to implement an agreement in a man- terest test, the FCC looks at many factors, should treat each other in this world ner that is not provided for under legis- such as financial and technical ability of the competitive marketplace. I believe lation, the courts can prohibit him applicant, international agreements, na- that the American worker can compete from taking those steps. tional security concerns, foreign policy con- with any worker in the world. I believe The amendment is harmful to our cerns, law enforcement concerns and the ef- that the American worker is the finest Nation’s trade interests. The approval fect of entry on competition in the U.S. mar- in the world. I would rather have an requirement imposed by the amend- ket. In the event of a successful conclusion American working to build a product ment would impose long delays and to these negotiations, the U.S. offer will than any other nationality, without allow the FCC to continue to apply these could create uncertainties for lucrative public interest criteria, as long as they do any disrespect to any of them. With trade agreements that would otherwise not distinguish among applicants on the that fundamental belief that American bring immediate benefits to American basis of nationality or reciprocity, con- workers can compete and do a better consumers, firms and workers. It is the sistent with the obligations of the General job, then I am in favor of reducing the American workers who would be hurt Agreement on Trade in Services. barriers, which the agreement that by this amendment. The Administration is continuing to con- Charlene Barshefsky has negotiated Under Senator HOLLINGS’ amend- sult with Congress and the FCC to determine will accomplish. ment, the President could not use the whether it would be helpful to modify the Telecommunications is a $600-billion- U.S. offer to include any additional parts of powers already granted him if he in- the statute’s text in the offer’s text. a-year industry. The World Trade Orga- tends to make any change in regu- In the alternative, if USTR does modify its nization’s basic telecom agreement latory or administrative practice, no offer, please cite what precedent gives USTR will double the size of the industry matter how insignificant. This amend- the authority to hold that the exception over the next 10 years. There is not a ment would require an act of Congress under the public interest waiver of section single telecommunications business in every time the President allocates a 310(b)(4) vitiates the statutory limitation of America that does not totally support new cheese or sugar quota, adds a control by a ‘‘foreign government or the rep- this agreement. The agreement will quota on a textile or apparel product, resentative thereof’’ under 310(a), which has lead to the creation of countless jobs in or implements a tariff rate quota on no waiver? Section 310(a) prohibits direct ownership of U.S. communications companies, in agricultural products, such as those re- a radio license by a foreign government or high tech equipment makers, and in a cently negotiated on imported goods its representative. Similarly, Section range of industries such as software, such as tobacco. The President has tra- 310(b)(1) prohibits direct ownership of a radio information services and electronic ditionally made these routine changes

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1964 CONGRESSIONAL RECORD — SENATE March 5, 1997 under proclamation authority granted cuss several trade issues important to was very encouraged by a commitment by the Congress. the people of my State. Farmers, fish- she made to me to find middle ground Finally, Ambassador Barshefsky will ermen, and others in natural resource with the Europeans that would give also have a busy coming year. It is my industries have long been concerned American manufacturers of capacitors hope that she will move quickly to about unfair trade practices by the Ca- more time to adjust to a tariff elimi- send the Congress legislation to pro- nadian Government. nation. vide for a clean reauthorization of fast- Maine potato farmers, in particular, Specifically, we talked about the pos- track authority so negotiations can have labored under trade practices that sibility of having a phaseout of the tar- begin immediately to expand the North have threatened the very survival of iff, rather than the abrupt elimination American Free Trade Agreement to some farms. Particularly troubling are in July. Chile. Pending successful expansion of apparent subsidies from the Canadian In closing, I would like to address the NAFTA, negotiations should continue Government that allow Canadian farm- issue of the need to waive a provision on the development of a free trade area ers to sell their products at artificially passed last Congress as part of the lob- of the Americas. low prices, thus enabling Canadian bying disclosure act. This provision Substantial questions will also arise farmers to dump large volumes of pota- prohibits the appointment of any per- regarding extension of MFN status to toes into the American market. At the son who has represented a foreign gov- China and the accession of China into same time, there is concern that Cana- ernment in a trade dispute with the the World Trade Organization. I am dians may be erecting trade barriers United States from serving as USTR or confident that Ambassador Barshefsky that make it difficult for our farmers deputy USTR. Like many of my col- is up to these challenges. to sell their products in Canada. leagues, I was very concerned about Mr. President, the United States has We cannot continue to tolerate Cana- the need to exempt someone from a law historically been a world leader in dian trading practices that adversely that is on the books and has been opening markets and expanding trade. affect Maine potato farmers, who have passed so recently. Since the foreign I believe leadership waned over the seen more than their share of hard country involved is Canada, I was par- first term of the Clinton administra- times. However, I am encouraged by ticularly concerned because of the con- tion. It is my hope, and, indeed, my Ambassador Barshefsky’s recent ac- tentious trading relationship that my prediction, that under the leadership of tions, which include asking the Inter- State has had over the years with Can- Charlene Barshefsky, the United States national Trade Commission to under- ada on many important products. How- will again take its place as the world take an investigation to determine the ever, after addressing this issue with leader for open and fair trade. nature and extent of Canadian potato Ambassador Barshefsky, I learned that I urge my colleagues to oppose the subsidies. This is a step in the right di- she was previously exempted from this Hollings amendment and support Sen- rection and a good sign that these provision in her capacity as deputy ate Joint Resolution 5 so that Ambas- issues will finally get the attention USTR. It, therefore, does seem reason- sador Barshefsky can be confirmed and they deserve. But it is only a first step. able to me to allow this waiver to fol- appointed to serve as our next U.S. It is critical that the administration low her into her new duties as USTR, Trade Representative. follow through and take action to as- and I agree with the Finance Commit- Mr. President, I regret there is not sure a level playing field. tee’s unanimous recommendation to time, but there will be opportunities in Another issue I raised with the Am- waive the law. the future to debate these issues with bassador was the frustration of some I am pleased to have had the oppor- my friend from South Carolina, who I Maine shellfish companies with newly tunity to meet with Ambassador have said on many occasions is not instituted inspection fees on shellfish Barshefsky and her staff to discuss only enlightening but on occasion en- products exported to Canada. Maine these important issues. They are crit- tertaining as well, which makes for shellfish exporters have been concerned ical issues to my constituents. I found spirited and involved debate. that the Canadians are unfairly tar- her to be very knowledgeable and re- Mr. President, I yield the remainder geting their products for inspection in sponsive. I am hopeful that her tenure of my time back to Senator ROTH. an attempt to make it more difficult as USTR will bring about renewed in- The PRESIDING OFFICER. The Sen- for Maine shellfish to be shipped to terest, commitment and, most of all, ator from Delaware. Canada. On this issue I found the Am- action on trade issues confronting the Mr. ROTH. Mr. President, I yield 5 bassador to be very responsive. She has people of Maine. minutes to the distinguished Senator been helpful with gathering informa- I appreciate the distinguished chair- from Maine. tion, and I am pleased USTR officials man of the Finance Committee yield- The PRESIDING OFFICER. The Sen- have begun meetings with their Cana- ing me time, and I yield the floor. ator from Maine is recognized for 5 dian counterparts to review these oner- The PRESIDING OFFICER. Who minutes. ous fees. yields time? Ms. COLLINS. Mr. President, I rise Finally, I also raised the issue, which Mr. ROTH. Mr. President, I yield 15 today to support the nomination of the distinguished Senator from South minutes to the distinguished Senator Charlene Barshefsky to be the next Carolina has talked about, and that is from West Virginia. United States Trade Representative. In the issue of the U.S. tariffs on capaci- The PRESIDING OFFICER. The Sen- representing a State with a long his- tors. As part of the Information Tech- ator from West Virginia is recognized tory of trade with Canada, I have taken nology Agreement negotiated in Singa- for 15 minutes. particular interest in President Clin- pore last year, the administration Mr. ROCKEFELLER. Mr. President, I ton’s nominee for USTR. agreed to a European proposal to elimi- rise to express my extremely strong, I have had serious concerns about nate the current 9 percent tariff on ca- very enthusiastic support for the nomi- this administration’s lack of aggres- pacitors entering the United States. nation of Charlene Barshefsky to be siveness in pursuing the concerns of Under the agreement, the tariff would our U.S. Trade Representative. This is Maine’s farmers and businesses regard- be eliminated in July of this year. an important vote for America, for its ing unfair trade practices by neigh- The elimination of this tariff could future. I urge my colleagues to give her boring Canada. Canada is Maine’s No. 1 pose a serious hardship on several the unanimous vote of confidence that trading partner, and Mainers value this American companies, one of which is in she has, in fact, already earned relationship, but we want it to be a fair my State of Maine. The Ambassador through her record of incredible for- relationship. When evidence is found and I discussed this hardship, and I titude, ability, and a long list of trade that trading practices are not fair, the made the case that the industry was accomplishments, even as acting United States needs to take strong and unaware of even the potential that this USTR. effective action. tariff could be eliminated. I asked what The President has put forward, To underscore my concern about this measures could be taken to provide frankly, a most unusual person—un- problem, I withheld my support for some relief. usually skilled, highly qualified, for Ambassador Barshefsky until I had an I was impressed with the Ambas- one of the most important jobs in the opportunity to meet with her to dis- sador’s knowledge on this issue, and I U.S. in Government, and that is being

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1965 our Nation’s lead trade negotiator and and the confirmation of that nomina- Commerce Committee, opposed NAFTA keeping up with all developments all tion hopefully on this day. as I did, I am certainly not saying that over the world all the time. It is an in- To turn to the amendment we are we should signal that this or any other credible job. now debating, the Senator from South administration has a blank check to She now should have the official title Carolina is one of the most forceful ad- make trade agreements that are not in to proceed with the job awaiting her in vocates in the Congress for American America’s interest. But that is not trade negotiations and efforts that interests in the global economy. I what the amendment of the Senator offer immense opportunities and ex- learned a great deal about issues com- from South Carolina is about. This tremely high stakes for our industries, ing from discussions with him about amendment would create a whole new for our workers, and for our economy. the globalization of the economy. He role for Congress that could have a In just the last year alone, on a talks about it a great deal with great chilling effect—would have a chilling whole host of other things, as our act- erudition, and I admire and share his effect—on trade negotiations that, in ing trade representative, Charlene intense commitment to American fact, seek to serve and strengthen U.S. Barshefsky has concluded a renewal of workers and industries. interests, which he talks about. our critical semiconductor agreement The Senator from South Carolina My problem with the Senator’s with the Japanese; seen through an also has a very long-time interest in amendment is that it would do much agreement to remove tariffs around the the issue of foreign ownership of Amer- more to reaffirm Congress’ role in re- world on information technology prod- ican telecommunications services, sponding to trade agreements that re- ucts; and won agreement of a massive which, in fact, happens to be the root quire a change in our laws. By using telecommunications pact that prom- cause of the Senator’s amendment, al- the language in the amendment which ises more than $1 trillion in worldwide though this dispute is not about broad- says that any trade law which would— economic benefits through the year cast rights but about telecommuni- and then the keywords are—‘‘in effect 2010, all of this as acting trade rep- cations services—not about broadcast amend or repeal statutory law,’’ I am resentative. rights but about telecommunications afraid it would entangle Congress in a Beyond that, I would point to one of services—like cellular or international constant, complicated, unnecessary Charlene Barshefsky’s strongest quali- calling. process of acting on trade agreements fications: Her masterful grasp of com- Clearly, there is a difference of opin- that do not embody actual changes in plicated issues surrounding China’s in- ion about what U.S. law allows in the U.S. law and don’t require congres- tegration into the global economy. area of ownership of telecommuni- sional involvement to obtain the bene- We have all read, hopefully, all of the cations services. This is a difference of fits of those agreements. writing that has come out about China opinion, not only between the Senator I respect the fact that the Senator since the death of Deng Xiaoping. I be- from South Carolina and USTR, but be- questions a part of the new tele- lieve that China is the single biggest tween the Senator and something communications trade agreement ne- long-term macroeconomic challenge called the Federal Communications gotiated in Geneva. Disagreements be- facing the United States. We cannot Commission, which he declines to rec- tween members of the legislative duck it. We must handle it intel- ognize on this matter. branch and executive branch are very ligently. The Senator, as the former chairman common, even on an intraparty basis. China is the world’s largest country, of the Commerce Committee and the But we have existing procedures to re- in terms of population, and its econ- ranking member now, also disagrees solve disputes like that when they omy will surpass ours sometime in the with the current chairman of the com- come up. A challenge can be taken up not too distant future. If its accession mittee, Senator JOHN MCCAIN, who has with the courts or something called to the World Trade Organization, in just spoken, as well as the chairman of legislation can be offered to change the particular, is not handled properly, the the House Commerce Committee, Mr. particular practice in dispute. ramifications for the United States BLILEY, over this law. The problem with the amendment of could be serious and long lasting. This As I understand it, the U.S. offer in the Senator from South Carolina is takes the hand of a master. That hand the telecommunications agreement that instead of proposing a specific belongs to Charlene Barshefsky. tracks U.S. law, meaning this dispute change of law, which addresses his in- We are also very fortunate to count is really over the interpretation of cur- terpretation of the law affecting own- on Ambassador Barshefsky as we face rent U.S. law by the FCC, which the ership of telecommunications services, the challenge of our trade relationship ranking member of the Commerce he is proposing a new, generic, far- with Japan. This winter I took, as I al- Committee does not like, not the trade reaching role for Congress that could ways do, a delegation of West Virginia agreement reached by USTR. affect nearly all future trade agree- business people to Japan and Taiwan. I thoroughly agree with the Senator ments. One of the messages we heard, in a from South Carolina that Congress For example, USTR recently con- troubling fashion very frequently, was must assert its constitutional right cluded an agreement which would that Japan was looking much more to- and responsibility to oversee inter- eliminate tariffs that were on some ward turning to the World Trade Orga- national trade and international com- widely sought after anti-AIDS drugs. nization for the settlement of pre- merce, and I am in full agreement Con- Under current law, this could be put viously negotiated bilateral trade gress should act when a trade agree- into effect—under current law—in 60 agreements, turning, therefore, away ment makes commitments that differ days under Presidential proclamation from the bilateral process which has from current law. But that is already authority. However, if the Hollings traditionally characterized our negoti- the law of the land. That exists now amendment were to pass, such routine ating relationship with Japan. under the current law. and noncontroversial changes would re- I don’t blame them if they are trying If a trade agreement reached by the quire a new act of Congress that could to avoid a U.S. negotiating team head- executive branch requires a change in mean waiting months or maybe even ed by somebody as forceful and capable law, Congress must act to implement watching the benefits of this trade as Charlene Barshefsky. My response is the agreement. When the President agreement never materialize. that overall United States-Japan rela- agreed to the Uruguay round, Congress The amendment by the Senator from tions depend on our ability to deal with had to pass implementing legislation South Carolina calls for a major shift one another, on a bilateral basis, on for us to meet its terms, which we did. in U.S. trade policy. It has not been our trading issues, and then have occa- However, to cite another example, discussed or considered in the Finance sional recourse to the WTO, but none when the President agreed to the ship- Committee, which has jurisdiction over of this could we do any better than by building agreement at the OECD, Con- all reciprocal trade agreements. having Ambassador Barshefsky at the gress did not agree to change American Finally, even if all these questions helm representing our country, our law to implement that particular could be answered, the House has al- people, the people from my State. agreement. ready said that they will ‘‘blue slip’’ It is impossible for me to explain how As somebody who, like the former the waiver resolution if it contains this strongly I feel about the nomination chairman and ranking member of the amendment, because it goes against

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1966 CONGRESSIONAL RECORD — SENATE March 5, 1997 the constitutional provision that all creased competition, the FCC has sion and/or negotiation between the measures which affect revenues must pointed to billions of dollars of savings United States and other nations. It originate in the House of Representa- from this deal for American consumers says that if our Executive branch nego- tives. So this amendment on the waiv- due to the eventual lowering of costs tiators reach an agreement which er resolution would doom the under- for international calling by 80 per- amends or repeals U.S. law, that agree- lying nomination, and Charlene Bar- cent—from more than $1 per minute to ment may not be implemented until shefsky is too good a nominee to see less than 20 cents—the actual cost of the agreement is approved by the Con- that happen. placing such a call. gress. Who could dispute such an obvi- With respect for my colleague from I’ll admit that I am disappointed ously valid proposition? South Carolina, I strongly urge my col- that some countries, such as Japan, The case at hand, the negotiation of leagues to vote against his amendment. Korea, and Canada, didn’t offer to open a new telecommunications services This is not the way, not the time, nor up their markets quite as much as the agreement, apparently effects changes the policy to use in resolving the Sen- United States did, but reaching this in U.S. law dealing with access to the ator’s dispute over a specific provision agreement doesn’t in any way prevent U.S. market in relation to the access of of a specific trade agreement. That dis- us from further negotiations with them American companies into foreign mar- agreement should be pursued through in this area. kets. This is a matter which was very other avenues that all of us use on a I’d also point out two things. First, controversial in connection with the very regular basis. In this case, the even though these countries, and some consideration of the landmark Tele- amendment would establish an entirely others, maintained limits on pur- communications Act of 1996. In work- new process, a new law, a new role for chasing existing providers, in most ing with the Commerce committee on Congress regarding all trade agree- cases, American firms can still go in to this legislation, I was involved in de- ments. It is a role that is unnecessary those same countries and compete on veloping certain changes to section and could prevent our trade nego- their own—and the regulatory prin- 310(b) of the underlying statute dealing tiators from doing the kinds of work ciples will guarantee that they are not with foreign ownership. The matter that we charge them to do in rep- blocked from connecting to existing was so controversial that the conferees resenting our best interests. telecommunications networks. on that legislation were unable to Rarely, if ever, have I seen an inter- Second, if it is Japan we are talking reach agreement, and changes to the national agreement that has virtually about, the idea that anyone plans to foreign ownership provisions were no opponents in either the business purchase more than 20 percent of NTT dropped from the final conference community or from American workers. any time soon, is ridiculous. NTT is agreement. Usually, people point to winners and the world’s largest company, worth It is all the more important that our losers in international trade agree- well over $100 billion—I’m told that 20 negotiations, in the light of the con- ments. Sometimes people are afraid percent would cost about $23 billion. troversial nature of this matter, take they could lose their jobs, or they feel Right now, 3 percent of NTT is owned care not to effect what amounts to a that their business could be disadvan- by foreigners, and I haven’t heard that change in the law by virtue of negoti- taged relative to their competitors. anyone plans to buy much more than ating a provision of an international But on this Telecom agreement, not- that. What American firms are talking agreement without taking the role of withstanding the objections of the Sen- about is the chance to start or invest the Congress into account. The law and ator from South Carolina and a couple in new common carriers in Japan, such an agreement should not be put into of others, I’ve heard barely a peep. as Japan Telecom, which is connected conflict on such a matter, and Senator This international telecommuni- to the Japanese Railroad, and which HOLLINGS is right to insist that no such cations agreement truly breaks new anyone can invest in with no limita- negotiated change should be imple- ground. For the first time ever, an tions. I’ll admit that I am concerned mented until the Congress has agreed international trade agreement effec- with the 20-percent limitation on KDD, by amending the law which governs the tively guarantees competition. The which is a much smaller company than situation. United States put forward regulatory NTT—about the size of one of our Baby Mr. HATCH. Mr. President, I support guidelines modeled on our own tele- Bells, but I’m hopeful we can work this the joint resolution before us waiving communications law, and 65 countries out in future negotiations. certain provisions of the Trade Act of agreed to adopt most, if not all, those To conclude, today we have finally 1974 relating to the nomination of Am- procompetitive principles. That is ex- reached the moment to extend the title bassador Barshefsky to the position of traordinary. of United States Trade Representative United States Trade Representative. This agreement between 69 countries to somebody who I think is magnifi- Let us make no mistake as to the will open nearly 95 percent of the cently qualified to take that job. Su- quality of Ambassador Barshefsky’s worldwide telecommunications serv- perb qualifications, superbly tested, service. We are not simply endorsing ices market to competition. A market and now prepared to advance America’s her as an exception to the act. Rather, which will exceed $600 billion in gross interests even further. What we are she could not be more deserving of con- revenues this year alone. Mr. Presi- going through today threatens to block firmation. Let’s examine her record. dent, I’d point out that in April of last her, which hurts her in China, which Her service has been marked by sub- year, Charlene Barshefsky walked hurts her in Japan, which hurts her all stantive accomplishments on an un- away from the talks when only 40 over the world, and therefore through precedented scale. Over 200 trade agree- countries had made offers, representing hurting her, our interests. ments have been enacted, and she has only 60 percent of global revenues. So I urge the unanimous vote that been in the middle of the dispute proc- Included in this agreement are local, she deserves, that she be made Ambas- ess for the most difficult of all—the long-distance, and international call- sador, the granting of the Dole waiver Chinese anti-piracy agreement—and ing services; submarine cables; sat- that is required, and the defeat of the more than 20 separate agreements with ellite-based services; wide-band net- amendment that does not belong here the Japanese in such areas as auto works; cellular phones; business and has consequences that could truly parts, telecommunications, govern- intranets; and fixed wireless services harm, not help, American interests. I ment procurement, semiconductors, for rural and underserved regions. yield the floor and thank the distin- and medical equipment and tech- What this agreement did not cover are guish Finance chairman. nology. Many of her accomplishments broadcast services. Mr. BYRD. Mr. President, I strongly have directly benefited my State of It is believed that competition by support the adoption of the amendment Utah which, despite its small size, is telecom service providers is expected introduced by the senior Senator from one of the Nation’s leading exporters of to lead more than $1 trillion in eco- South Carolina [Mr. HOLLINGS]. On the technology and software. nomic benefits for consumers around face of it, it is a straightforward, sim- Like many other members of the the world through 2010. While U.S. con- ple proposition that attempts to pre- Senate Finance Committee, I have sumers have already reaped much of serve the integrity of the laws that we been inundated by letters from hun- the benefit of deregulation and in- pass, and that are the subject of discus- dreds of Barshefsky supporters. This

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1967 outpouring of support underscores my quires a waiver if she is to become our think I know why, because I visited own impression, as I expressed at the trade representative. that State one time, and he walks recent Finance Committee hearing, Mr. President, anyone who has among those people who have lost their that she is a most qualified nominee worked with Ambassador Barshefsky jobs in textile mills and understands for U.S. Trade Representative. understands her full commitment and those people’s pain. But let me draw attention to one par- dedication to the trade interests of the We are now suffering that kind of a ticular comment regarding her success United States. pain because of the border wars with in the Chinese trade negotiations. I My State has been involved in a long- Canada in the State of Montana. When- refer to a statement from the Record- standing dispute with Canada with re- ever you start talking about fast ing Industry Association of America, a spect to unfairly traded Canadian grain tracking authority to expand NAFTA, sector that has been especially hard hit coming into this country at below and you understand the effect NAFTA by Chinese intellectual property pi- their cost and having a devastating ef- has had on us in the beef industry and racy. In his recent letter to me, RIAA fect on the farmers of my State, not the grain industry—and that is what I chairman and CEO, Jay Berman, re- only the producers in North Dakota am; I am not anything else fancy—then ported, ‘‘I personally witnessed her ne- but farmers in Montana, farmers in I say we have to approach that very gotiations with China in June, 1995, South Dakota, Minnesota, Kansas, Ne- cautiously, because I am not going to that led to the immediate closing of 15 braska. Charlene Barshefsky has stood lower the living standards of my farm- pirate CD [compact disc] plants.’’ with us shoulder to shoulder to get a ers for the sake of so-called free trade She has been repeatedly credited fair result. unless it is fair trade. If left un- with breakthroughs in other sectors as Mr. President, this issue first came checked, it will also contribute to the well. up when she was approved as the Dep- devastation of other sectors in our Na- As my good friend from Delaware uty USTR 4 years ago. She has done a tion’s economy as well, if we do not said only moments earlier, she has superb job in her position at the trade just look at some of these things. vastly expanded market access for representative’s office. I think anybody We live in a free economy, we live in American business—in Asia, Latin who has followed her career and a global economy. I admit while Cana- America, and Europe. More impor- watched the job she did in negotiating dian livestock producers reap the bene- tantly, her work will be seen as an ad- to open up Pacific rim countries to our fits of new profit markets, Montana vent to still another American cen- trade, the job that she has done fight- producers are hit with a flood of im- tury, a century that will be marked by ing for U.S. interests in trade disputes ports at the same time that the cattle market is already at the bottom of its rising prosperity everywhere. with Canada, that she represented for a scale. So we cannot afford any more of Mr. ROTH addressed the Chair. brief time on limited issues when she this. To stem that, we will have to do The PRESIDING OFFICER (Mr. was in the private sector, would under- it through enabling legislation. SMITH of Oregon). The Senator from stand there is no reason—none—to Delaware. I say that the pending amendment is deny a waiver to allow Charlene one that has to be discussed among the UNANIMOUS-CONSENT AGREEMENT Barshefsky to become our trade rep- FCC, keeping in mind that the final Mr. ROTH. Mr. President, I have a resentative. rule of last year’s telecom bill has not unanimous-consent request which has Mr. President, Charlene Barshefsky been written yet. So, I have some very been cleared with the minority. I ask is superb. I have dealt with many trade strong concerns about the expansion unanimous consent that following the representatives. Rarely does one find that this President and this adminis- allotted times for debate, the Senate someone of her background, her intel- tration want to take. We see loaded proceed to a vote on or in relation to ligence, her talent and her commit- trucks with cattle going through Mon- the Hollings amendment No. 19: Sen- ment. Those are qualities that we want tana, and we say, are they stopping ator HOLLINGS 9 minutes, Senator CON- working for the United States in these here? And they say, no, they are going RAD 5 minutes, Senator DASCHLE 10 very difficult trade negotiations. And south. We lost the Mexican market, minutes, Senator BURNS 6 minutes, she has shown her mettle over and over plus we lost some of our own markets Senator ROTH 5 minutes; and imme- and over. I urge my colleagues to vote through the last little deal. We got diately following that vote the joint for the waiver and to vote for Charlene snookered a little bit talking about resolution be read a third time and the Barshefsky to be our next trade rep- NAFTA. Senate proceed to a vote on passage of resentative. I thank the Chair and I oppose any kind of fast track as far Senate Joint Resolution 5; further, if yield the floor. as the expansion of NAFTA is con- the resolution passes, the Senate then The PRESIDING OFFICER. Who cerned because I think it has to be proceed to executive session and imme- yields time? done the right way. I voted against it diately vote on the confirmation for Mr. BURNS addressed the Chair. the first time, understanding where the the nomination of Charlene The PRESIDING OFFICER. The Sen- Senator from South Carolina and the Barshefsky. I further ask unanimous ator from Montana. Senator from Montana were coming consent that prior to the second and Mr. BURNS. I thank the Chair and I from, and I will probably, unless we third vote there be 2 minutes of debate thank my friend from Delaware. have a mechanism we can work out equally divided in the usual form. I rise today with some concerns these troubles that we have, playing on The PRESIDING OFFICER. Is there about the new trade representative, a level playing field, I am saying right objection? Without objection, it is so Charlene Barshefsky. But I also rise to now that if you want to ship cattle into ordered. support her nomination. She has prov- the United States, I want you to have Mr. ROTH. Mr. President, I yield the en herself to be a tough negotiator as the same rules and regulations, the floor. the acting trade representative. She re- same environmental laws as we have to Mr. CONRAD addressed the Chair. cently played a major role in the open- comply with in this country. That is The PRESIDING OFFICER. The Sen- ing of foreign markets in telecommuni- only fair. ator from North Dakota. cations, an agreement which we hope If Ms. Barshefsky is a tough nego- Mr. CONRAD. Mr. President, I rise to will decrease the costs of international tiator, I will stand beside her, but do briefly address two questions: No. 1, calls and likely to have similar impact not use agriculture as a pawn and then the question of a waiver for Ambas- on domestic rates as well as U.S. com- sell it out like we have in times past. sador Barshefsky; and, No. 2, the ap- panies competing on a worldwide basis. One has to remember that agriculture proval of Ambassador Barshefsky as But on the other hand, Ms. is still the largest contributor to the our trade representative. Barshefsky’s bidding on the adminis- GDP in this country. I will support her Mr. President, I represent the State tration’s behalf of NAFTA to expand in the upcoming confirmation vote and of North Dakota. We are right next to into some South American countries hope that she works with us in Con- Canada. The question of a waiver for has me somewhat concerned. gress whenever negotiations of expan- Ambassador Barshefsky relates to the There is nobody in this body who sion get under way. question of her previous representation fights harder for his people than the I yield back the remainder of my of Canada on trade issues, and that re- Senator from South Carolina. And I time.

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1968 CONGRESSIONAL RECORD — SENATE March 5, 1997 Mr. HOLLINGS. Mr. President, let you can possibly make it: ‘‘No inter- merchandise trade in deficit. That is, me acknowledge the one kind word we national trade agreement,’’ which is we bought manufactured goods. There got this afternoon in this debate. The what we have in the telecommuni- is the great productive United States— Senator from Montana is on target. He cations agreement ‘‘which would in ef- not the workers. We know the workers is right. We go home and we see the fect remand or repeal statutory law’’— are the most productive. That is why jobs not only created at the BMW’s but I put the two statutes in that have we got 100 German industries. That is we see the jobs that have been lost, and been amended or repealed; not regula- why we have 50 Japanese industries. that retraining out of Washington will tions or anything else or fast track and That is why we have, companies not suffice. I do appreciate it very all the other things—‘‘of the United Michelin—I called on them 35 years much, and I agree with him. He brings States may be implemented by or in ago, and now we got 11,600 jobs from it right to the fore, the straw man they the United States until the agreement France in my State. We are not talking have put up. is approved by Congress.’’ It says that about productivity. We are talking They talk fast track, they talk regu- is approved by Congress under its con- about the productivity of this Con- lations, they talk the differences be- stitutional duty. gress, this Government up here. We are tween broadcast and common carrier Now, there is absolutely a terrible the ones that are not producing. We are under the statute, as there being a dis- misunderstanding about this so-called the ones that are not producing, chas- tinction, and, of course, the most seri- free trade. It is just like the crowd run- ing our tail around the mulberry bush, ous one they bring is the character of ning around acting like they have reve- with independent prosecutors and in- the lady herself, which I never would nues—the doubletalk on the budget. vestigations. suggest anything otherwise, and is of Everybody wants to cut the revenues, We know the problem is too much the finest character as an individual, cut the revenues, taxes are too burden- money in the game. Everyone has to Ms. Barshefsky. That is not a debate. some, cut the revenues, but ‘‘I want to skirt around this, twist this, turn that, She happens to say that you do not balance the budget and I have a plan to and along goes the Supreme Court say- need any approval of Congress. Well, balance it.’’ How can they pay the bill ing, soft money, you can do this and then, I ask, why did the previous man by cutting the revenues? How can we that and the next thing. So there we of character, and just as dazzling as possibly have free trade when we re- are. We are not producing here. We Ms. Barshefsky, Mickey Kantor—and I strict the trade? have $187 billion more than we bought inserted in the RECORD his request that We say to that U.S. corporation, ‘‘Be- in merchandise than what we sold. we amend the law so he could agree on fore you can do business, you have to They keep on talking about exports, foreign ownership. Now she is saying have a minimum wage. You have to exports. So we are going out of busi- there is not any agreement, and there comply with the Social Security re- ness and nobody wants to talk about it. are all kinds of straw men. quirements for pension and retirement They bring up all these straw men The junior Senator from West Vir- rights. You have to have Medicare re- about the complicated process, the ginia was saying there is a distinction quirements by the Finance Committee. chilling effect, new role for Congress— here. I am talking about broadcast You have to have clean air. You have there is no new role. It is the only role rights and television services. I put to have clean water, plant closing no- that we have, a constitutional role. I these two sessions in there, and it can tice, parental leave,’’ and on down the think that we ought to just retain the be read, ‘‘No broadcast or common car- list of all these requirements—OSHA, balance of the time. rier license shall be granted to the for- safety workplace, safe machinery. All I ask for the yeas and nays, Mr. eign government’’ and on and on and these requirements that Congress put President. on. It is crystal clear that there is no on and then say, ‘‘I have free trade.’’ The PRESIDING OFFICER. Is there a distinction. That is why none other Well, you can go to Mexico and you do sufficient second? than the Chairman of the FCC asked not have to have any of that. That is There is a sufficient second. that it be changed. why we immediately ipso facto with The yeas and nays were ordered. So we really come to the floor after that NAFTA agreement went from a Mr. HOLLINGS. I retain the balance 2 to 3 years of asking for a change, not plus balance of trade to a whooping of my time. effecting the change, the 95 Members of negative, which they promised other- The PRESIDING OFFICER. The Sen- the U.S. Senate voting and saying, all wise, losing all the jobs and wrecking ator’s time has expired. right, we agree that there be no Mexico and the United States. Mr. ROTH addressed the Chair. change, and now they are all coming Some question was raised about the The PRESIDING OFFICER. The Sen- and saying, ‘‘Well, this is going to have Pacific rim. We have a deficit in the ator from Delaware. a chilling effect,’’ when the special balance of trade with Indonesia of $4.1 Mr. ROTH. Mr. President, we have trade representatives change the law billion. We have a deficit in the bal- had a great deal of debate on the Hol- and give away the store, the 100 per- ance of trade with Japan of $47.5 bil- lings amendment. So, in closing, I will cent ownership. lion. We have a deficit in the balance of be brief, but I want to make two simple Heavens above, we cannot make it trade with China of $39.4 billion. A def- points. First, no trade agreement—I more clear to everyone. We read sec- icit in the balance of trade with Malay- emphasize ‘‘no trade agreement’’—has tion 8, article 1, of the Constitution: sia, $9.4 billion. Taiwan is $11.4 billion. the stature to supersede U.S. statutory ‘‘The Congress shall have power’’ and it A deficit in the Philippines of $1.7 bil- law. If a trade agreement seeks to ac- goes on ‘‘to lay and collect taxes’’ and lion. A deficit in Thailand of $4.9 bil- complish a result not in conformity No. 2, to borrow money, and No. 3 ‘‘to lion. A deficit in Singapore of $3.2 bil- with U.S. statutory law, the Congress regulate commerce with foreign na- lion. And we can cite the European must enact legislation to achieve that tions.’’ It does not say regulate foreign ones. I had them here on a list a result. nations on a fast track. It does not say minute ago. We know there is a deficit Second, the amendment, whatever its regulate commerce regulation laws. It in Canada, and, yet, they talk about merits, will cause Senate Joint Resolu- says regulate commerce. These fellows everything so magnificent. Let’s rush tion 5 to be blue-slipped in the House if could not have voted for the Constitu- over to China and get another agree- the amendment is agreed to. The only tion if they had been a forefather back ment—quick. Heavens above, don’t result that the amendment can accom- in the founding days. they understand that we are losing, we plish is to derail the Barshefsky nomi- I never said anything about regula- are not winning? This crowd around nation. Make no mistake, I have a let- tions. The Senator from Rhode Island here act like they are accomplishing ter from BILL ARCHER, chairman of the came in and brought that up, and they something. Committee on Ways and Means. He keep on bringing up these straw men Well, we have the Federal Republic of says that, ‘‘Specifically, I understand and talking about a complicated proc- Germany, minus $15.4 billion; Ven- that the Senate maybe asked to con- ess. You could not make an agreement ezuela, minus $8.1 billion; Italy, deficit sider particular provisions, such as one or anything else of that kind, having a and a balance, minus $9.4 billion. We suggested by Senator HOLLINGS, which chilling effect. The language is just as can go right on down the list. It is all would change the manner in which simple and constitutionally clear as in all in all—I said the sum total of Congress considers trade agreements

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY March 5, 1997 CONGRESSIONAL RECORD — SENATE S1969 and legislation having a direct affect chair of the Finance Committee, the Ambassador Barshefsky has been on customs revenue. Although I strong- Senator from Delaware, for their lead- widely praised and supported by indus- ly support Ambassador Barshefsky’s ership on this issue. try leader in many sectors of the econ- nomination, I would have no choice but I think it has been shown this after- omy. Alfred J. Stein, chairman of the to insist on the House constitutional noon that, as a representative of the Semiconductor Industry Association prerogative and to seek the return to United States in trade negotiations and VLSI Technology Inc., has stated the Senate of any legislation including around the world, Ambassador that ‘‘the President could not have such a provision.’’ Barshefsky has proven herself to be a found a more talented and dedicated So I urge my colleagues to vote ‘‘no’’ tough and effective advocate of Amer- envoy to represent the U.S. trade inter- on the Hollings amendment. I yield ican interests. Her solid record of est.’’ John E. Pepper, Chairman of whatever time I have to my distin- achievement has done much to level Procter and Gamble Company, has said guished colleague from New York. the playing field for American pro- that ‘‘Ambassador Barshefshy . . . rep- The PRESIDING OFFICER. The Sen- ducers. She understands the challenges resents U.S. trade interests in an ag- ator from New York is recognized. facing the United States in the world gressive yet diplomatic manner. The Mr. MOYNIHAN. Mr. President, the trading system. Her negotiating style nation is fortunate to have [her] as our chairman and I have a letter we have combines careful preparation, great U.S. Trade Representative.’’ Gary just received from Charles F.C. Ruff, stamina, determination, and a willing- Hufbauer, a scholar at the Institute for counsel to the President, and after the ness to exercise the leverage provided International Economics, has described upcoming vote, we will vote on the res- by U.S. trade laws when circumstances her as ‘‘easily the most qualified, most olution itself. He states: warrant it. knowledgeable person on trade law Because the President strongly desires to For example, as a key architect of ever nominated to this post.’’ appoint Ambassador Charlene Barshefsky as the United States-Japan Framework In my opinion, Ambassador USTR, and in order to ensure the absolute Agreements, she used the leverage pro- Barshefsky’s experience, knowledge propriety, without question, of her appoint- vided by tariffs on Japanese luxury car and tenacity make her the best person ment, President Clinton will not appoint imports to gain better market access for the job. She has my full support, Ambassador Barshefsky until S.J. Res. 5 has in Japan for American car manufactur- been enacted. and I urge my colleagues to support ers without penalizing consumers back her nomination and the proposed waiv- I ask unanimous consent that the home. Thanks, in part, to her efforts, er from the Lobbying Disclosure Act. full text of the letter be printed in the exports of foreign vehicles to Japan The waiver is necessary because she RECORD at this point. have increased by 30 percent last year, performed a limited amount of work There being no objection, the letter and the number of American franchise for Canadian interests while she was an was ordered to be printed in the dealer outlets reached near 20. Amer- international trade lawyer in private RECORD, as follows: ican companies are making substantial practice. Effective January 1, 1996, the THE WHITE HOUSE, investments in Japan and forging im- Lobbying Disclosure Act bars anyone Washington, DC, March 5, 1997. portant new partnerships with Japa- who previously represented a foreign Hon. WILLIAM ROTH, Chairman, nese business. government from being nominated for Hon. DANIEL PATRICK MOYNIHAN, Ranking Member, Ambassador Barshefsky has also a senior USTR post. The Ambassador Senate Finance Committee, demonstrated she appreciates the cru- was exempted from this requirement U.S. Senate, Washington, DC. cial role agriculture trade plays in the during her service as Deputy USTR, DEAR CHAIRMAN ROTH AND SENATOR MOY- American economy. Last year, the and it is appropriate to ‘‘grandfather’’ NIHAN: I write to urge you to pass S.J. Res. trade surplus in agricultural products her tenure as U.S. Trade Representa- 5 as quickly as possible without amendment. reached $28.5 billion, the largest of any tive as well. As you know, Section 21(b) of the Lobbying industry. Still, as she has acknowl- The distinguished ranking member of Disclosure Act of 1995 prohibits the Presi- edged to me, we could do far better. the Commerce Committee, Senator dent from appointing anyone to serve as United States Trade Representative (USTR) Annual surveys compiled by the Office HOLLINGS, is proposing an amendment or Deputy USTR if that person had in the of U.S. Trade Representative indicate to the waiver that I must reluctantly past directly represented, aided or advised a that roughly half of the foreign trade oppose. I have sympathy for the issue foreign government in a trade dispute or barriers facing U.S. products are in the he raises and might well support his ef- trade negotiation with the United States. agricultural sector. forts under different circumstances. Because the President strongly desires to ap- Persistent market access barriers However, the leadership of the body point Ambassador Charlene Barshefsky as and other unfair trade practices con- has expressed its firm opposition to USTR and in order to ensure the absolute tinue to be a source of concern, and al- Senator HOLLINGS’ legislation, and propriety, without question, of her appoint- though agricultural exports, as a ment, President Clinton will not appoint House Ways and Means Committee Ambassador Barshefsky until S.J. Res. 5 has whole, have risen, problems remain in Chairman ARCHER has indicated that been enacted. many areas, including beef and cattle he will seek to have any bill including Sincerely, prices. the language ‘‘blue-slipped’’, or sent CHARLES F.C. RUFF, In my view, liberalizing world trade back to the Senate, on the grounds Counsel to the President. is part of the answer to problems in the that it would constitute a revenue Mr. MOYNIHAN. Mr. President, I agricultural economy. However, our measure that must originate in the yield the floor. negotiators must be prepared not only House. Mr. ROTH. Mr. President, I suggest to seek new global agreements but also For these reasons, adoption by the the absence of a quorum. to ensure that individual trading part- Senate of the Hollings amendment The PRESIDING OFFICER. The ners comply with their market access would almost certainly delay Ambas- clerk will call the roll. commitments from previous ones. sador Barshefsky’s nomination for an The assistant legislative clerk pro- Thankfully, in Charlene Barshefsky, unacceptably long time. The Senate ceeded to call the roll. we have found someone who under- has a responsibility to approve the Mr. DASCHLE. Mr. President, I ask stands this challenge. In recent years, President’s Cabinet nominees as expe- unanimous consent that the order for she has worked to increase beef exports ditiously as possible. Ambassador the quorum call be rescinded. to Korea, increase the availability of Barshefsky is a particularly fine The PRESIDING OFFICER. Without fresh produce in Japan and China, and choice, and, in my view, the Senate objection, it is so ordered. thwart European trade barriers that should not take any action that would Mr. DASCHLE. Mr. President, I have could have devastated American soy- delay her confirmation further. Ac- had the opportunity to listen to the de- bean and corn exports. There has been cordingly, I must ask my colleagues to bate this afternoon, and I appreciate a 30 percent increase in the value of ag- vote no on the amendment of the dis- and commend the participation of the ricultural exports since 1994, and I am tinguished Senator from South Caro- distinguished Senator from Arizona confident that we will continue to lina. and our ranking member on the Fi- build on this progress under her leader- Again, Mr. President, let me urge all nance Committee, and certainly the ship. Senators who support the nomination

VerDate Mar 15 2010 21:56 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\1997SENATE\S05MR7.REC S05MR7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S1970 CONGRESSIONAL RECORD — SENATE March 5, 1997 to support the joint resolution waiver The Senator from Delaware. Inhofe Mack Sarbanes Inouye McCain Sessions to give Ambassador Barshefsky the Mr. ROTH. Mr. President, before the Jeffords McConnell Shelby kind of bipartisan support that her Senate votes on Senate Joint Resolu- Johnson Mikulski Smith, Bob record, that her ability, that her intel- tion 5, I want to reiterate the impor- Kempthorne Moseley-Braun Smith, Gordon lect, and that her potential demand. tance of passing this waiver. The waiv- Kennedy Moynihan H. With that, I yield the floor. Kerrey Murkowski Snowe er is essential. Kerry Murray Specter Mr. MCCAIN addressed the Chair. Mr. FORD. Mr. President, may we Kohl Nickles Stevens The PRESIDING OFFICER. The Sen- have order? Kyl Reed Thomas ator from Arizona. The PRESIDING OFFICER. The Sen- Landrieu Reid Thompson Mr. MCCAIN. Mr. President, I move Lautenberg Robb Thurmond ator from Kentucky is correct. Sen- to table the Hollings amendment, and I Leahy Roberts Torricelli ators will take their conversations to Levin Rockefeller Warner ask for the yeas and nays. the cloakroom. Lieberman Roth Wellstone The PRESIDING OFFICER. Is there a Lugar Santorum Wyden sufficient second? The Senator from Delaware. There is a sufficient second. Mr. ROTH. The waiver is essential to NAYS—2 The yeas and nays were ordered. ensure that the President is able to ap- Allard Lott point this capable nominee to the post The PRESIDING OFFICER. The The joint resolution (S. J. Res. 5) was of USTR. question is on agreeing to the motion passed. of the Senator from Arizona to lay on I want to make just two points. the table the amendment of the Sen- First, when the Lobbying Disclosure The preamble was agreed to. ator from South Carolina. On this Act was passed, Ambassador The joint resolution, with its pre- question, the yeas and nays have been Barshefsky was serving as Deputy amble, reads as follows: ordered, and the clerk will call the roll. USTR. As such, the act expressly did S.J. RES. 5 The assistant legislative clerk called not apply to her in that position. Whereas paragraph (3) of section 141(b) of the roll. Second, the Ambassador never lob- the Trade Act of 1974 (19 U.S.C. 2171(b)(3)) be- The PRESIDING OFFICER (Mr. bied the U.S. Government on behalf of came effective on January 1, 1996, and pro- SANTORUM). Are there any other Sen- a foreign government or foreign polit- vides certain limitations with respect to the ators in the Chamber who desire to ical party. appointment of the United States Trade Rep- vote? Under these circumstances, I strong- resentative and Deputy United States Trade The result was announced—yeas 84, ly feel that passage of the waiver is ap- Representatives; nays 16, as follows: propriate to assure the appointment of Whereas paragraph (3) of section 141(b) of [Rollcall Vote No. 25 Leg.] Ambassador Barshefsky as USTR. the Trade Act of 1974 does not apply to any YEAS—84 individual who was serving as the United The PRESIDING OFFICER. The Sen- States Trade Representative or Deputy Abraham Glenn McConnell ator from New York will suspend. The United States Trade Representative on the Akaka Gorton Mikulski Senate will please come to order. effective date of such paragraph (3) and who Allard Graham Moseley-Braun Baucus Gramm Moynihan The Senator from New York. continued to serve in that position; Bennett Grams Murkowski Mr. MOYNIHAN. Mr. President, just Whereas Charlene Barshefsky was ap- Bingaman Grassley Murray to supplement the chairman’s remarks, pointed Deputy United States Trade Rep- Bond Gregg Nickles I would like to point out that he and I resentative on May 28, 1993, with the advice Boxer Hagel Reed Breaux Harkin have received a letter today from and consent of the Senate, and was serving Reid Brownback Hatch in that position on January 1, 1996; Robb Charles F.C. Ruff, Counsel to the Presi- Bryan Hutchinson Whereas paragraph (3) of section 141(b) of Roberts dent, stating: Bumpers Hutchison the Trade Act of 1974 does not apply to Burns Inhofe Rockefeller Because the President strongly desires to Roth Charlene Barshefsky in her capacity as Dep- Campbell Jeffords appoint Charlene Barshefsky as USTR and in uty United States Trade Representative; and Chafee Johnson Santorum order to ensure the absolute propriety, with- Sarbanes Whereas in light of the foregoing, it is ap- Cleland Kennedy out question, of her appointment, President Sessions propriate to continue to waive the provisions Coats Kerrey Clinton will not appoint Ambassador Cochran Kerry Shelby of paragraph (3) of section 141(b) of the Trade Barshefsky until S.J. Res. 5 has been en- Collins Kohl Smith, Gordon Act of 1974 with respect to the appointment acted. Coverdell Kyl H. of Charlene Barshefsky as the United States D’Amato Landrieu Specter I yield the floor and thank the Chair. Trade Representative: Now, therefore, be it Daschle Lautenberg Stevens Mr. ROTH. Mr. President, I ask for DeWine Leahy Thomas Resolved by the Senate and House of Rep- Dodd Levin Thompson the yeas and nays. resentatives of the United States of America in Domenici Lieberman Thurmond The PRESIDING OFFICER. Is there a Congress assembled, That notwithstanding the Durbin Lott Torricelli sufficient second? provisions of paragraph (3) of section 141(b) Enzi Lugar Warner of the Trade Act of 1974 (19 U.S.C. 2171(b)(3)) Feinstein Mack There is a sufficient second. Wyden or any other advice and consent of the Sen- Frist McCain The yeas and nays were ordered. ate, is authorized to appoint Charlene NAYS—16 The PRESIDING OFFICER. The Barshefsky as the United States Trade Rep- Ashcroft Faircloth Kempthorne question is on the passage of the joint resentative. Biden Feingold Smith, Bob resolution. Byrd Ford Snowe The clerk will call the roll. Mr. ROTH. I move to reconsider the Conrad Helms Wellstone The bill clerk called the roll. vote. Craig Hollings Dorgan Inouye The result was announced, yeas 98, Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table the nays 2, as follows: amendment (No. 19) was agreed to. [Rollcall Vote No. 26 Leg.] The motion to lay on the table was Mr. ROTH. Mr. President, I move to YEAS—98 agreed to. reconsider the vote. Abraham Cleland Feinstein Mr. MOYNIHAN. I move to lay that Akaka Coats Ford f motion on the table. Ashcroft Cochran Frist Baucus Collins Glenn The motion to lay on the table was Bennett Conrad Gorton EXECUTIVE SESSION agreed to. Biden Coverdell Graham The PRESIDING OFFICER. The Bingaman Craig Gramm The PRESIDING OFFICER. Under clerk will read the joint resolution for Bond D’Amato Grams the previous order, the Senate will pro- Boxer Daschle Grassley ceed to executive session to consider the third time. Breaux DeWine Gregg The joint resolution was ordered to Brownback Dodd Hagel the nomination of Charlene be engrossed for a third reading and Bryan Domenici Harkin Barshefsky, of the District of Colum- was read the third time. Bumpers Dorgan Hatch bia, to be the U.S. Trade Representa- The PRESIDING OFFICER. The Sen- Burns Durbin Helms tive, with the rank of Ambassador Ex- Byrd Enzi Hollings ate will please come to order. There are Campbell Faircloth Hutchinson traordinary and Plenipotentiary, vice 2 minutes equally divided. Chafee Feingold Hutchison Michael Kantor.

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