E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, WEDNESDAY, NOVEMBER 5, 1997 No. 153 House of Representatives The House met at 10 a.m. and was The SPEAKER pro tempore. The The message also announced that the called to order by the Speaker pro tem- question is on the Chair’s approval of Senate had passed bills of the following pore [Mr. SUNUNU]. the Journal. titles, in which the concurrence of the f The question was taken; and the House is requested: Speaker pro tempore announced that DESIGNATION OF THE SPEAKER S. 813. An act to amend chapter 91 of title the ayes appeared to have it. 18, United States Code, to provide criminal PRO TEMPORE Mr. ROGAN. Mr. Speaker, I object to penalties for theft and willful vandalism at The SPEAKER pro tempore laid be- the vote on the ground that a quorum national cemeteries; fore the House the following commu- is not present and make the point of S. 940. An act to provide for a study of the nication from the Speaker: order that a quorum is not present. establishment of Midway Atoll as a national memorial to the Battle of Midway, and for WASHINGTON, DC, The SPEAKER pro tempore. Pursu- other purposes; November 5, 1997. ant to clause 5 of rule I, further pro- S. 1231. An act to authorize appropriations I hereby designate the Honorable JOHN E. ceedings on this question are post- for fiscal years 1998 and 1999 for the United SUNUNU to act as Speaker pro tempore on poned. States Fire Administration, and for other this day. purposes; and NEWT GINGRICH, The point of no quorum is considered S. 1324. An act to deauthorize a portion of Speaker of the House of Representatives. withdrawn. the project for navigation, Biloxi Harbor, f f Mississippi. PRAYER PLEDGE OF ALLEGIANCE The message also announced, that The Chaplain, Rev. James David The SPEAKER pro tempore. Will the pursuant to section 4355(a) of title 10, United States Code, the Chair, on be- Ford, D.D., offered the following pray- gentleman from Ohio [Mr. KUCINICH] er: come forward and lead the House in the half of the Vice President, appoints the We pray, gracious God that whatever Pledge of Allegiance. following Senator to the Board of Visi- our obligations or whatever our time in Mr. KUCINICH led the Pledge of Alle- tors of the United States Military life, we will experience purposeful chal- giance as follows: Academy: The Senator from New Jersey [Mr. lenges that engage the spirit and keep I pledge allegiance to the Flag of the LAUTENBERG] from the Committee on our hearts and minds filled with enthu- United States of America, and to the Repub- siasm. Help us to be aware that there lic for which it stands, one nation under God, Appropriations, vice the Senator from are always ways that we can contrib- indivisible, with liberty and justice for all. Wisconsin [Mr. KOHL]. ute to the benefit of people about us or f f to help lift the burdens of others with MESSAGE FROM THE SENATE ANNOUNCEMENT BY THE SPEAKER their daily concerns. May Your Spirit, PRO TEMPORE O God, so touch our spirits that our A message from the Senate by Mr. minds are alert, our hearts are compas- Lundegran, one of its clerks, an- The SPEAKER pro tempore. The sionate, and our hands eager to do the nounced that the Senate had passed Chair will entertain 15 one-minutes on good works that honor You and serve without amendment bills of the House each side. people whatever their need. In Your of the following titles: f name we pray. Amen. H.R. 79. An act to provide for the convey- CUTTING TAXES IS NOT SELFISH f ance of certain land in the Six Rivers Na- (Mr. NEUMANN asked and was given THE JOURNAL tional Forest in the State of California for the benefit of the Hoopa Valley Tribe; permission to address the House for 1 The SPEAKER pro tempore. The H.R. 708. An act to require the Secretary of minute.) Chair has examined the Journal of the the Interior to conduct a study concerning Mr. NEUMANN. Mr. Speaker, I rise last day’s proceedings and announces grazing use and open space within and adja- this morning to look at the results of to the House his approval thereof. cent to Grand Teton National Park, Wyo- last night’s elections and see that the Pursuant to clause 1, rule I, the Jour- ming, and to extend temporarily certain people have spoken and they do not be- nal stands approved. grazing privileges; and lieve it is selfish for the working fami- H.R. 2464. An act to amend the Immigra- Mr. ROGAN. Mr. Speaker, pursuant tion and Nationality Act to exempt inter- lies of this great Nation to want to to clause 1, rule I, I demand a vote on nationally adopted children 10 years of age keep more of their own money in their agreeing to the Speaker’s approval of or younger from the immunization require- own home and spend it on their fami- the Journal. ment in section 212(a)(1)(A)(ii) of such Act. lies, rather than sending it to whatever

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H9995 H9996 CONGRESSIONAL RECORD — HOUSE November 5, 1997 the taxing organization might be, for returning contributions made freely who founded the Breast Exam Self whether it be Washington or their local by their parishoners, the IRS says, Testing Program, known as the BEST tax burden. trust us. We did not do anything ille- Program. BEST is sponsored by Meno- We understand that the President gal. If we did, we will not do it again, rah Medical Center and is supported by said that he believes it is selfish, self- but we do need to make some changes. 35 physicians who volunteer their time ish, for people to support tax cuts. Mr. It kind of sounds like campaign reform. and expertise to provide a free clinic President, it is not selfish for our hard- Mr. Speaker, there are a lot of good visit to help educate women on proper working families that are going to re- people working at the IRS put in very breast self-examination techniques. ceive the $400 per child tax credit to bad positions by their management. Since 1985, more than 3,500 women want to keep that money in their home The best thing to do would be to elimi- have benefited from this program. In to use on their families rather than nate the Tax Code and create a fairer addition, BEST is working with local send it to Washington, DC. and flatter tax. But in the meantime junior and senior high schools to help It is not selfish for a hard-working we should all vote for H.R. 2676, the educate young women on ways to work family that is maybe now working IRS Restructuring and Reform Act, on this disease. three jobs to want to keep more of and get some common sense back at f their own hard-earned money in their the IRS. family so they only need to work two f BRING H.R. 856, SELF DETERMINA- jobs instead of three to make ends TION FOR PUERTO RICO, TO THE BRING SOME COMMON SENSE TO meet, so they can keep more money FLOOR FOREIGN RELATIONS there and spend more time with their (Mr. ROMERO-BARCELO´ asked and families because they are now only (Mr. TRAFICANT asked and was was given permission to address the working two jobs instead of three. That given permission to address the House House for 1 minute and to revise and is not selfish. That is family values of for 1 minute and to revise and extend extend his remarks.) this great Nation that we live in. That his remarks.) Mr. ROMERO-BARCELO´ . Mr. Speak- is the opportunity for parents to spend Mr. TRAFICANT. Mr. Speaker, see if er, I rise to the occasion in support of more time with their children. this makes sense. America gives bil- H.R. 856, a bill to provide a process f lions of foreign aid to Russia; Russia leading to the full self-determination then takes American cash and builds for Puerto Rico. This bill seeks to put DEFEAT OF ‘‘ISSUE 2’’ A LESSON new weapons; Russia then offers to sell FOR ALL an end to the disenfranchisement of 3.8 the old weapons to Iran. America try- million U.S. citizens in Puerto Rico. (Mr. KUCINICH asked and was given ing to keep nuclear technology from This bill is essential to strengthening permission to address the House for 1 Iran, and they buy the old weapons our Democratic process. minute and to revise and extend his re- from Russia. Russia then asks America The U.S. citizens of Puerto Rico have marks.) for more foreign aid. America trying to been partners of the United States Mr. KUCINICH. Mr. Speaker, yester- keep the Marx brothers out of Russia, since 1898, almost one century, having day one of the most important election and I do not mean Groucho, give Rus- fought hand-in-hand to defend Amer- issues in America was decided in the sia more foreign aid. ican principles and Democratic ideals State of Ohio in favor of working fami- After all this, the State Department worldwide. After having faithfully lies. Ohio ‘‘Issue 2’’ sought to reduce labels the National Council Resistance, fought side-by-side with our fellow citi- and eliminate many benefits accorded the opposition party in Iran, fighting zens in every armed conflict since 1917, injured workers under the workers for democracy, trying to throw those Puerto Ricans are denied the right to compensation system. When people are bums out. They label them a terrorist exercise self-determination and their injured on the job, they have a right to group. right to vote. As the United States fair compensation, but Issue 2 would Unbelievable. How dumb can Uncle preaches to the world on human rights have taken away that right. Sam be? Let us tell it like it is. Those and democracy, it has forgotton 3.8 A powerful coalition led by labor and Russian nuclear scientists are not other representatives of injured work- million of its own citizens. hanging around Iran to watch belly How can we ask Castro to hold a ers rose up to protect the moral, the dancers. What is next? Will the Penta- plebiscite and open elections in Cuba economic, and the spiritual rights of gon lease Tehran? when this Nation, an example and in- people to be able to be fairly com- Beam me up, Mr. Speaker. With a spiration of democracy, keeps 3.8 mil- pensated when they are injured on the foreign policy like this, I do not know lion of its own citizens disen- job. how we still have our sovereignty. franchised? Please support H.R. 856. It The defeat of Issue 2 is a lesson for f those who would seek to use the legis- is our responsibility. We must bring EARLY DETECTION SAVES LIVES lative process to deprive workers of H.R. 856 to the floor soon. their rights. It is also a lesson for those (Mr. SNOWBARGER asked and was f given permission to address the House who would defy power which seems om- ELECTION RESULTS SAY IT ALL nipotent, who believe that they could for 1 minute.) overcome the odds, assert their rights Mr. SNOWBARGER. Mr. Speaker, I (Mr. PAPPAS asked and was given and triumph on behalf of working men have come to the floor to focus our Na- permission to address the House for 1 and women. tion’s attention on a disease that af- minute.) f flicts one in every 8 women and affects Mr. PAPPAS. Mr. Speaker, we fre- everyone’s lives. Each year, more than quently hear that liberal and conserv- COMMON SENSE NEEDED AT THE 46,000 women lose their lives in a fight ative are nothing but labels, but Mr. IRS against breast cancer and it is this fact Speaker, it is a question of vision con- (Mr. TIAHRT asked and was given I find most distressing, because in trasting between the liberal vision and permission to address the House for 1 many cases, early detection could have the conservative vision for America. minute and to revise and extend his re- prevented the losses of life. Just a few days ago while campaign- marks.) According to the American Cancer ing in Alexandria, VA, President Clin- Mr. TIAHRT. Mr. Speaker, soon it Society, nearly 9 out of every 10 women ton called the voters who support tax will be cookies and tea at the IRS. who are diagnosed with breast cancer relief selfish. Well, Mr. Speaker, yes- They are holding an open house down survive. A major component in achiev- terday all throughout this country, in at the IRS. It is their kinder and ing this success rate is educating particular I would like to point out in gentler version of the most feared bu- women to regularly conduct breast the 13th district of New York, a dis- reaucracy in America. self-examinations. Again, early detec- trict where VITO FOSSELLA was elected After years of abusing Americans on tion of breast cancer can prevent the to replace Susan Molinari in the House repeated audits, after confiscating per- loss of life. of Representatives, a district that the sonal property and closing family busi- In Kansas City, women are benefiting Democrats said would be a bellwether nesses, after harassing local churches from the works of Florein Leiberman, test for what is to happen in 1998 in the November 5, 1997 CONGRESSIONAL RECORD — HOUSE H9997

House elections. Mr. FOSSELLA was b 1015 Mr. President, I am gravely dis- overwhelmingly elected by over 60 per- CONGRATULATIONS, HOUSTON, appointed in these comments. For a cent and we are fortunate to have him FOR SUPPORTING AFFIRMATIVE leader who likes to remind us he ‘‘feels join this House this morning. ACTION our pain,’’ I wish you would recognize Mr. Speaker, selfishness is not an ef- the pain caused by oppressively high fort to keep more of what Americans (Ms. JACKSON-LEE of Texas asked taxes on working American families. earn, it is the right thing to do. and was given permission to address You have a chance to join us in the the House for 1 minute and to revise fight to return more of their money f and extend her remarks.) from the IRS to their pocketbooks. I Ms. JACKSON-LEE of Texas. Mr. urge you to reconsider who is the truly Speaker, I am very proud this morning SAY ‘‘NO’’ TO FAST TRACK selfish one in this debate. to announce that the citizens of Hous- f (Mr. DEFAZIO asked and was given ton, TX, are decent people. Resound- permission to address the House for 1 ingly, yesterday they defeated a clone VOUCHER PROPOSAL DEFEAT IS minute.) of proposition 209 out of California, and VICTORY FOR PUBLIC SCHOOLS Mr. DEFAZIO. Mr. Speaker, the full they proclaimed their commitment to (Ms. DELAURO asked and was given court corporate press for fast track leg- affirmative action and equal oppor- permission to address the House for 1 islation is on. The USA NAFTA cap- tunity for all. They rejected a referen- minute and to revise and extend her re- tains are back. Remember these folks, dum to deny the city of Houston the marks.) colleagues? These are the same cor- opportunity to implement affirmative Ms. DELAURO. Mr. Speaker, last porate CEO’s that came here and prom- action. night this body voted down the Ging- ised NAFTA would be a boon for Amer- With congratulations to local elected rich voucher proposal. This was a great ican workers. We would run trade sur- officials and all of us who worked very victory for America’s public schools pluses with Mexico. Our people would hard, but most of all congratulations and a great victory, more important, be in full employment. to the citizens of Houston, who under- for America’s public school children. Guess what? These same folks are stood what affirmative action is. It This Nation’s commitment to public back. Their salaries are up dramati- does not take away from someone else schools, to public education, is one of cally, their profits are up, but 43 per- and give to another unfairly, it simply the cornerstones of our democratic so- cent of them have laid off American opens the door of opportunity for some- ciety. workers. They have moved the jobs to one equally qualified. The notion, the notion that every Mexico. Twenty percent of them are To the Canady legislation to be child, regardless of race, gender, sta- documented for threatening their marked up in the Committee on the tion in life, is entitled to public edu- workers with moving their jobs to Mex- Judiciary, be forewarned, the people of cation, that is what we have been ico unless they accept lower wages, but America are saying that equal oppor- about in this great Nation. for us, is it not wonderful? Twenty per- tunity is what we believe in and what Today our public schools do have a cent of them are also in the top givers this country stands for. We will fight lot of problems. Vouchers is not the of soft money to politicians. all the way to maintain the oppor- way to fix them. Vouchers simply pro- They are here now in the back rooms tunity for all citizens. Thank you, vide an out for a lucky few, while draining precious resources that could and trying to get into your offices. Say Houston, for standing for what Amer- be spent on replacing leaky roofs, buy- no to the corporate money. Say yes to ica truly believes in, and that is equal ing new computers, or hiring new the American workers. Say no to fast opportunity and access for all of us, teachers. This is a way to take money track, no, no, no. through an effort to defeat discrimina- tory practices by the use of affirmative from public education and put it to pri- f action. vate education for the privileged and f for the few. Let me congratulate my colleagues AMERICA NEEDS A NEW IRS PRESIDENT WRONG TO LABEL who stood up on the floor last night. (Mr. GIBBONS asked and was given TAXPAYERS SELFISH They stood up for public education, and permission to address the House for 1 (Mr. ROGAN asked and was given they voted down the Gingrich voucher minute and to revise and extend his re- permission to address the House for 1 plan. marks.) minute and to revise and extend his re- f Mr. GIBBONS. Mr. Speaker, we can marks.) VOTES REFLECT SOLIDARITY control disease in America, but we can- Mr. ROGAN. Mr. Speaker, we Repub- WITH CHINESE IN STRUGGLE not control the IRS. Here we go again, licans believe that one of the greatest FOR DEMOCRACY and as my mother used to say, same family values we can promote in Con- song, just a different verse. The IRS gress is to allow hard-working people (Ms. ROS-LEHTINEN asked and was given permission to address the House has found a new way to abuse the to keep more of the money they have for 1 minute and to revise and extend American taxpayer. This time they are earned, and have the right to spend it reneging on an agreement with the res- her remarks.) on their families. How I wish the Presi- Ms. ROS-LEHTINEN. Mr. Speaker, taurant industry. dent would join us in that family After complaining for years that the U.S. Congress has a unique oppor- value. tunity today to stand in solidarity they are not able to tax the tips earned I was stunned to pick up the front with the long-suffering Chinese people by hard-working restaurant employees, page of the newspaper yesterday and to in their struggle for freedom, for de- the IRS proposed a new voluntary tax- see the headline: ‘‘Clinton Labels Tax mocracy, for respect for human rights. ation plan. Restaurants could, but were Cut Selfish.’’ I read from the news- There is a series of bills before us by no means obligated to, use this paper, lest anybody think I am exag- today ranging from enforcing a ban on method of recording this income. To gerating: ‘‘President Clinton yesterday slave labor products to condemning the nobody’s surprise, the IRS has now re- called voters attracted to Republican abhorrent practice of forced abortion. sorted to intimidation, threatening au- tax cut promises selfish, saying they The House will vote on sanctions on dits on any business that does not fol- should be satisfied instead with a re- Chinese missile exports to Iran, as well low their extortionary demands. vived economy, and happy to pay for as my bill, which will place human This type of harassment must end. government services’’ (emphasis rights monitors in our Embassy and Fortunately, the IRS Restructuring added). consulates in China. and Reform Act of 1997 will prohibit Yesterday, in Virginia he scolded We will send a message to the people this abuse of power. Yes, Mr. Speaker, voters for backing the selfishly gratify- of Tibet and Taiwan that we want today is a new day, and we need a new ing pledge to slash taxes. ‘‘This is them to have self-determination. IRS. The time has come to restore the going to be like one of those meals you The House will vote on adopting a common sense and accountability of order and you are hungry 30 minutes voluntary set of principles which pro- this country’s tax collection agency. later,’’ the President proclaimed. mote good corporate citizenship by H9998 CONGRESSIONAL RECORD — HOUSE November 5, 1997 United States companies doing busi- was proposed by my fellow Repub- most important, it shifts the burden of ness in China. licans. This education agenda includes proof in court cases from a taxpayer to We pressure China to stop selling nu- six measures which provide every child the IRS. clear-related technology to countries in America with first-class learning op- Mr. Speaker, it is time for Congress such as Pakistan that are trying to de- portunities in safe, secure schools to stick up for the American people by velop nuclear weapons. where children can focus on learning standing up to the IRS. I urge my col- The House will increase funding for and teachers can focus on teaching. leagues to support this important IRS the National Endowment for Democ- Sending more money to Washington reform. racy to promote democracy in China, bureaucrats is a policy of the past, and f and we will express our disgust at the we must begin to give control of our INCONSISTENCY IN AMERICA’S Chinese practice of harvesting and schools back to the States, local FOREIGN POLICY transplanting human organs from pris- schools, teachers, and our parents, oners, and we will deny U.S. visas to where it belongs. (Mr. PAUL asked and was given per- mission to address the House for 1 those Chinese officials. f f minute and to revise and extend his re- PROTECT AMERICA’S SOV- marks.) MAJOR ENVIRONMENTAL GROUPS EREIGNTY AND SLOW DOWN Mr. PAUL. Mr. Speaker, the Congress UNIFIED IN OPPOSITION TO FAST TRACK has never earned high marks for con- FAST TRACK (Mr. BOYD asked and was given per- sistency. We do spend many hours de- (Mr. PALLONE asked and was given mission to address the House for 1 bating the minor differences in the permission to address the House for 1 minute and to revise and extend his re- management of many centralized pro- minute and to revise and extend his re- marks.) grams that are generally unwarranted. marks.) Mr. BOYD. Mr. Speaker, in the last But when it comes to foreign policy, I Mr. PALLONE. Mr. Speaker, the few weeks I have grown increasingly see both sides of the aisle are eagerly major environmental organizations, concerned about the World Trade Orga- agreeing with the President that we some of which were strong supporters nization’s impact on our sovereignty. must threaten force and use of force in of NAFTA in 1993, have expressed their The WTO allows a panel of trade ex- Iraq. Yet, Mr. Speaker, there is no indica- opposition to the current fast track perts to rule that Federal and State tion that this is a proper position. We proposals moving through the House laws are barriers to trade. If we do not have been told by the Ambassador to and Senate. The National Wildlife Fed- take action to comply with the WTO’s the United Nations that the reason we eration, the National Audubon Society, ruling, other nations then can level pu- must threaten force in this area is that and Defenders of Wildlife have joined nitive tariffs against us. it is a direct threat to the security of with the Sierra Club, Friends of the While many have glossed this over, the United Nations. Here all along I Earth, and dozens of other grassroots Congress has already changed one law thought I was here in the Congress to environmental organizations around to avoid these sanctions. The WTO has protect the security of the United the country who oppose this legisla- cases pending against several State and States. tion. Federal laws. In Florida, we require We are inconsistent because the ma- The debate currently raging over fast foreign agricultural producers who ship jority of Americans want us out of track is not a question of whether the crops into our State to pay for inspec- Bosnia. Most Members of Congress United States enters into a global tions when their produce enters our argue and vote to get us out of Bosnia. economy, it is a question of how we ports. These inspections protect locally There is no indication that we are participate in that economy, and grown crops from exposure to foreign- going to get out of Bosnia. Yet, here we whether we should sacrifice the rights based infestations, which could dev- are, chanting away that we should use of workers in this country and around astate a multibillion-dollar agricul- force and threaten force in Bosnia. We the world in the name of free trade. It tural industry. do not have that same policy with is a question of whether we should ca- While the State law does not violate China. pitulate to multinational corporations any Federal statute, it is currently f which would bargain down the environ- being challenged in the WTO. I would mental protection standards of nations urge my colleagues to take a close look THE PRESIDENT JOINS REPUB- around the world in the name of com- at the WTO before voting on fast track. LICANS IN ESSENTIAL IRS RE- petitiveness. Protect our sovereignty and slow down FORM Mr. Speaker, the United States can- fast track. (Mr. ENGLISH of Pennsylvania asked not afford to encourage a race to the f and was given permission to address bottom when it comes to preserving the House for 1 minute and to revise IRS REFORM the global environmental or the rights and extend his remarks.) of workers to a safe workplace and a (Mr. KNOLLENBERG asked and was Mr. ENGLISH of Pennsylvania. Mr. fair wage. We should vote down this given permission to address the House Speaker, in response to the last speak- fast track legislation when it comes up for 1 minute and to revise and extend er, I would point out that Ralph Waldo at the end of this week. his remarks.) Emerson once wrote that, ‘‘A foolish f Mr. KNOLLENBERG. Mr. Speaker, it consistency is the hobgoblin of little is no wonder that the vast majority of minds, adored by little statesmen and SUPPORT THE REPUBLICAN Americans feel that nobody in Wash- philosophers and divines.’’ EDUCATION REFORM AGENDA ington is on their side. Consider the I think President Clinton must have (Mr. SHIMKUS asked and was given IRS, as some speakers have already. meditated on Emerson when he re- permission to address the House for 1 For too long and for too many times, cently flip-flopped on reforming the In- minute and to revise and extend his re- this agency has acted in an arrogant, ternal Revenue Service. Although the marks.) heavy-handed fashion, running rough- Clinton administration originally op- Mr. SHIMKUS. Mr. Speaker, as a shod over hard-working taxpayers. posed IRS restructuring, the President former teacher in Edwardsville, IL, I Fortunately, I believe Congress has wisely sacrificed consistency and often use my 1-minutes to praise teach- listened to the American people and is jumped on the bandwagon of the IRS ers and students who have touched so now on the verge of passing a bill that reform bill developed by the Commit- many lives in central and southern Illi- will provide taxpayers with some much tee on Ways and Means. nois. My past in education also makes needed protections against the abuses Building on the recommendation of me very aware of the need for reforms of the IRS. This bill makes it easier for the bipartisan Kerry-Portman Commis- in our local schools. taxpayers to recover legal fees when sion, this reform legislation would That is why I rise today to urge par- the IRS is wrong. It allows taxpayers overhaul IRS management by placing ents, teachers, and students to embrace to sue the IRS for up to $100,000 for the agency under an independent over- the bold education reform agenda that negligent collection practices, and sight board. It would expand taxpayer November 5, 1997 CONGRESSIONAL RECORD — HOUSE H9999 protections by enacting 28 new tax- Today I ask the American public, cipline. It is not selfish to save for the payer rights, including the right to sue which do they want, more bureaucracy, future. It is not selfish to give more for negligence, to collect legal fees, to or more freedom for education at the money to your children so that they be notified of the reasons for an audit. local level? can invest for their education. It is not For the first time, taxpayers in ad- f selfish to ask government to restrain vanced IRS proceedings will be consid- its wasteful spending patterns. It is ered innocent until proven guilty. This PRESIDENT CALLS VIRGINIANS time government recognizes that it is IRS reform bill is essential. SELFISH FOR SEEKING LOWER for the people, by the people, of the f TAXES people, not for the President. (Mr. HAYWORTH asked and was WOULD MEMBERS GIVE FAST f given permission to address the House TRACK AUTHORITY TO A PRESI- for 1 minute and to revise and extend POLICY AGAINST CHINESE DENT THEY SAY CANNOT BE his remarks.) GOVERNMENT TRUSTED? Mr. HAYWORTH. Mr. Speaker, I (Mr. TAYLOR of Mississippi asked (Mr. ADERHOLT asked and was noted with interest and I must admit, given permission to address the House and was given permission to address Mr. Speaker, a trace of disbelief the the House for 1 minute and to revise for 1 minute and to revise and extend headline in yesterday’s Washington his remarks.) and extend his remarks.) Times: Clinton Labels Tax Cut Selfish. Mr. TAYLOR of Mississippi. Mr. Mr. ADERHOLT. Mr. Speaker, I rise Speaker, my two previous colleagues b 1030 today to ask my colleagues a question. stressed the importance of consistency Mr. Speaker, I would suggest to the What exactly are we waiting for? What in statesmanship. I am going to agree. President that it is not the American trade practice? What military threat? For the past 6 years folks on this side people who are selfish. Instead, it is a What human rights atrocity will fi- of the aisle in particular have been say- government that takes more and more nally move us to take a stand against ing that Bill Clinton could not be and more of what people earn and then the policies of the Chinese Govern- trusted, on a daily and almost hourly unfairly takes it away from them. ment? basis. I would point out the experience of a America fought a war to end slavery, Well, if they really feel that way, I 93-year-old American who suffered yet we wink at the sale of human body hope they will stick to their guns, be- from Alzheimer’s disease who sent a parts. We stand in line at the Holo- cause within the next week we will be check to the Internal Revenue Service caust Museum, yet we also line up to called upon as Congressmen to give for $7,000. Even the IRS admitted that make deals with a government that away our constitutionally mandated was a mistake. But when it came time murders Christians and Buddhists. We duty, given to us in article 1, section 8, to give that money back, the Internal had sanctions against South Africa, clause 3 of the Constitution, to regu- Revenue Service said, no, the statute yet we extend MFN to China. Why? late commerce with foreign nations. of limitations had run out. So the IRS No one has a stronger desire to see Fast track will take that authority was protected with its own selfishness. U.S. businesses flourish, but profit from Congress and give it to a Presi- Today, Mr. Speaker, in our bill to re- comes at a price. If it costs a little dent that they say cannot be trusted. form the Internal Revenue Service, we more to make a product in the United If Members really think he cannot be take away that statute of limitations. States, I will gladly pay the difference. trusted, then do not give him our re- For that senior citizen’s family, includ- History will judge us harshly if we sponsibilities. Under no circumstances fail to take a stand. I urge Members to should Congress be giving away our ing an Arizona couple, we will try to make it right. No, it is not the people vote for the Cox package and to sup- constitutionally-mandated duties. This port H.R. 1865, the Freedom from Reli- is the highest law of the land. I would who are selfish; it is a brutal, repres- sive tax regime. gious Persecution Act. encourage all of us to live by it. f f f THE JOURNAL DO AMERICANS WANT MORE BU- SELFISH TO VOTE TO SLOW THE REAUCRACY OR MORE FREEDOM SIZE AND GROWTH OF GOVERN- The SPEAKER pro tempore (Mr. FOR EDUCATION AT THE LOCAL MENT SUNUNU). Pursuant to clause 5 of rule I, LEVEL? (Mr. FOLEY asked and was given per- the pending business is the question de (Mr. PETERSON of Pennsylvania mission to address the House for 1 novo of agreeing to the Speaker’s ap- asked and was given permission to ad- minute.) proval of the Journal. dress the House for 1 minute and to re- Mr. FOLEY. Mr. Speaker, the Presi- The question is on agreeing to the vise and extend his remarks.) dent says it is selfish to vote to slow Speaker’s approval of the Journal of Mr. PETERSON of Pennsylvania. Mr. the size and wasteful growth of govern- the last day’s proceedings. Speaker, we have been having an ongo- ment. The question was taken; and the ing educational debate here in Con- Consider this: Have you looked at Speaker pro tempore announced that gress, in the 105th Congress. There are your phone bill lately with all the gov- the ayes appeared to have it. several issues that have come out that ernment fees? Have you looked at your Mr. ADERHOLT. Mr. Speaker, I ob- I want to share today. cable bill and all of its government ject to the vote on the ground that a Seven percent of the money for edu- taxes and fees, your gas taxes when you quorum is not present and make the cation comes from the Federal Govern- fill up your car, your sales taxes on point of order that a quorum is not ment, yet 70 percent of the paperwork purchases, your property taxes on real present. and red tape come from the Federal estate, your State income taxes, your The SPEAKER pro tempore. Evi- Government. We have discussed special payroll taxes on earning, your excise dently a quorum is not present. education, vocational education, taxes on beverages, your IRS taxes on The Sergeant at Arms will notify ab- choice, charter schools, literacy. income? sent Members. The Democrats have worked for more Only in Washington can one say the The vote was taken by electronic de- money, more Federal control, more bu- Lord giveth and the Government vice, and there were—yeas 353, nays 48, reaucracy, which equals more taxes. taketh away. When Washington takes not voting 31, as follows: The Republicans have fought for 90 per- it from you, it is called compassionate. [Roll No. 575] cent to go to the classroom, which has When you want your money back from YEAS—353 normally been about 70 percent; for Washington because it is wasting it, Ackerman Baesler Bartlett local control, allowing the community you are called selfish. Aderholt Baker Barton and parents to choose. Federal control Mr. Speaker, it is the American tax- Allen Baldacci Bass Andrews Ballenger Bateman means Federal bureaucracy and will payers’ money, not ours, not Congress’, Archer Barcia Bentsen not be in the best interests of our stu- not the White House’s, the taxpayers’. Armey Barrett (NE) Bereuter dents. It is not selfish to ask for fiscal dis- Bachus Barrett (WI) Berman H10000 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Berry Granger Moakley Stump Towns Wexler SWEARING IN OF THE HONORABLE Bilbray Green Moran (VA) Sununu Traficant Weygand Bilirakis Greenwood Morella Talent Turner White VITO FOSSELLA, OF NEW YORK, Bishop Gutierrez Murtha Tanner Upton Whitfield AS A MEMBER OF THE HOUSE Blagojevich Hall (OH) Myrick Tauzin Velazquez Wicker OF REPRESENTATIVES Bliley Hall (TX) Nadler Taylor (NC) Walsh Wise Blumenauer Hamilton Neal Thomas Wamp Wolf Mr. ARMEY. Mr. Speaker, I ask Blunt Hansen Nethercutt Thornberry Watkins Woolsey unanimous consent that the gentleman Boehlert Harman Neumann Thune Watt (NC) Wynn from New York [Mr. VITO FOSSELLA] be Boehner Hastert Ney Thurman Watts (OK) Yates Bonilla Hastings (WA) Northup Tiahrt Waxman Young (FL) permitted to take the oath of office Bono Hayworth Norwood Tierney Weldon (FL) today. His certificate of election has Boucher Hefner Obey Torres Weldon (PA) not arrived, but there is no contest, Boyd Herger Olver NAYS—48 and no question has been raised with Brady Hill Ortiz Brown (FL) Hilleary Owens Abercrombie Fox Menendez regard to his election. Bryant Hinojosa Oxley Becerra Gephardt Miller (CA) The SPEAKER. Is there objection to Bunning Hobson Packard Bonior Gibbons Moran (KS) the request of the gentleman from Borski Gutknecht Nussle Burr Hoekstra Pallone Texas? Burton Holden Pappas Brown (CA) Hastings (FL) Oberstar Buyer Hooley Parker Brown (OH) Hefley Pickett There was no objection. Callahan Horn Pascrell Clay Hilliard Ramstad The SPEAKER. The Chair requests Calvert Hostettler Pastor Clayton Hinchey Sabo Clyburn Hulshof Schaffer, Bob that the Member-elect from New York Camp Houghton Paul present himself in the well of the Campbell Hoyer Paxon DeFazio Johnson, E. B. Stupak Canady Hunter Payne DeLauro Kucinich Tauscher House escorted by the New York dele- Cannon Inglis Pease English Lewis (GA) Taylor (MS) gation. Ensign Lipinski Thompson Cardin Istook Pelosi Mr. FOSSELLA appeared at the bar of Carson Jackson (IL) Peterson (MN) Everett LoBiondo Vento Castle Jackson-Lee Peterson (PA) Fazio McDermott Visclosky the House and took the oath of office, Chabot (TX) Petri Filner McNulty Weller as follows: Chambliss Jenkins Pickering NOT VOTING—31 Do you solemnly swear that you will Chenoweth John Pitts support and defend the Constitution of Christensen Johnson (CT) Pombo Barr Flake Riggs Clement Johnson (WI) Pomeroy Boswell Foglietta Riley the United States against all enemies, Coburn Gonzalez Royce Coble Jones Porter foreign and domestic; that you will Cooksey Hutchinson Salmon Collins Kanjorski Portman Crane Hyde Schiff bear true faith and allegiance to the Combest Kasich Poshard Cubin Jefferson Scott same; that you take this obligation Condit Kelly Price (NC) Davis (IL) Johnson, Sam Spence Conyers Kennedy (MA) Pryce (OH) freely, without any mental reservation Delahunt Kaptur Waters Cook Kennedy (RI) Quinn or purpose of evasion, and that you will Dellums McIntyre Young (AK) Costello Kennelly Radanovich Dixon Meek well and faithfully discharge the duties Cox Kildee Rahall Engel Mollohan Coyne Kilpatrick Rangel of the office on which you are about to Cramer Kim Redmond b 1056 enter. So help you God? Crapo Kind (WI) Regula The SPEAKER. Congratulations, you Mr. GIBBONS changed his vote from Cummings King (NY) Reyes are a Member of the House. Cunningham Kingston Rivers ‘‘yea’’ to ‘‘nay.’’ Danner Kleczka Rodriguez So the Journal was approved. f Davis (FL) Klink Roemer The result of the vote was announced Klug WELCOMING THE HONORABLE Davis (VA) Rogan as above recorded. Deal Knollenberg Rogers VITO FOSSELLA TO THE HOUSE DeGette Kolbe Rohrabacher f OF REPRESENTATIVES DeLay LaFalce Ros-Lehtinen Deutsch LaHood Rothman COMMUNICATION FROM THE (Mr. GILMAN asked and was given Diaz-Balart Lampson Roukema CLERK OF THE HOUSE permission to address the House for 1 Dickey Lantos Roybal-Allard Dicks Largent Rush The Speaker laid before the House minute.) Dingell Latham Ryun the following communication from the Mr. GILMAN. Mr. Speaker, it is in- Doggett LaTourette Sanchez Clerk of the House of Representatives: deed an honor to be able to introduce Dooley Lazio Sanders Doolittle Leach Sandlin OFFICE OF THE CLERK, the newest Member of our New York Doyle Levin Sanford HOUSE OF REPRESENTATIVES, delegation, VITO FOSSELLA, who is Dreier Lewis (CA) Sawyer Washington, DC, November 5, 1997. joined today by his good lady, Mary Duncan Lewis (KY) Saxton Hon. NEWT GINGRICH, Pat, who is here with him watching Dunn Linder Scarborough The Speaker, House of Representatives, Wash- this beautiful occasion. Edwards Livingston Schaefer, Dan ington, DC. Ehlers Lofgren Schumer DEAR MR. SPEAKER: I have the honor to Ehrlich Lowey Sensenbrenner b 1100 transmit herewith a facsimile copy of a let- Emerson Lucas Serrano Mr. Speaker, it is a great honor for Eshoo Luther Sessions ter received from Mr. Peter S. Kosinski, Dep- Etheridge Maloney (CT) Shadegg uty Executive Director, State Board of Elec- the Staten Island population to have Evans Maloney (NY) Shaw tions, State of New York, indicating that, such an accomplished legislator join Ewing Manton Shays according to the unofficial returns for the us. VITO was formerly on the New York Farr Manzullo Sherman general election held November 4, 1997, the Fattah Markey Shimkus City Council for many years. He is now Honorable Vito Fossella was elected Rep- going to fill the shoes of the 13th Con- Fawell Martinez Shuster resentative in Congress for the Thirteenth Foley Mascara Sisisky Congressional District, State of New York. gressional District, who was so ably Forbes Matsui Skaggs represented by Mrs. Paxon, Susan, Ford McCarthy (MO) Skeen With warm regards, Fowler McCarthy (NY) Skelton ROBIN H. CARLE. whom we all know and did such an out- Frank (MA) McCollum Slaughter standing job in the days gone by. Franks (NJ) McCrery Smith (MI) STATE OF NEW YORK, VITO, we wish you the best of luck. Frelinghuysen McDade Smith (NJ) STATE BOARD OF ELECTIONS, God bless in all of your new endeavors. Frost McGovern Smith (OR) Albany, NY, November 5, 1997. Furse McHale Smith (TX) f Gallegly McHugh Smith, Adam ROBIN H. CARLE, Ganske McInnis Smith, Linda Clerk, House of Representatives, The Capitol, WELCOMING THE HONORABLE Gejdenson McIntosh Snowbarger Washington, DC. Gekas McKeon Snyder DEAR MS. CARLE: Based on the unofficial VITO FOSSELLA TO THE HOUSE Gilchrest McKinney Solomon returns, Vito Fossella was elected to the Of- OF REPRESENTATIVES Gillmor Meehan Souder fice of Representative in Congress from the Gilman Metcalf Spratt (Mr. RANGEL asked and was given 13th Congressional District of New York at permission to address the House for 1 Goode Mica Stabenow the General Election held on November 4, Goodlatte Millender- Stark 1997. minute.) Goodling McDonald Stearns Mr. RANGEL. Mr. Speaker, this was Gordon Miller (FL) Stenholm Sincerely, Goss Minge Stokes PETER S. KOSINSKI, hardly the way I expected this to turn Graham Mink Strickland Deputy Executive Director. out. Having said that, the Members of November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10001 the New York delegation take great are waived. The previous question shall be audit of the IRS and found a troubled pride in working together not only considered as ordered on the bill, as amend- agency that wastes billions of dollars what we think is in the interests of our ed, to final passage without intervening mo- in resources and lacks a culture of cus- great State, but certainly of our won- tion except: (1) two hours of debate on the tomer service. The audit also revealed bill, as amended, which shall be equally di- an agency that is fraught with manage- derful country. We welcome you to the vided and controlled by the chairman and delegation, we welcome you to the Con- ranking minority member of the Committee ment, governance and oversight prob- gress. We will be working with you for on Ways and Means; and (2) one motion to lems and is unaccountable to Congress better appropriations, better support recommit with or without instructions. and the American people. for our State, and a better America. The SPEAKER pro tempore (Mr. These problems were further illus- trated during 3 days of Senate Finance f SUNUNU). The gentleman from Califor- Committee hearings in September, nia [Mr. DREIER] is recognized for 1 OPENING REMARKS OF THE which revealed an out-of-control agen- HONORABLE VITO FOSSELLA hour. Mr. DREIER. Mr. Speaker, for the cy that intentionally engages in unnec- essary and sometimes illegal tactics to (Mr. FOSSELLA asked and was given purpose of debate only, I yield the cus- harass middle-income taxpayers who permission to address the House for 1 tomary 30 minutes to the gentleman have limited due process rights. minute.) from Texas [Mr. FROST], pending which Mr. FOSSELLA. Mr. Speaker, this is If enacted, H.R. 2676 will bring about I yield myself such time as I may the first comprehensive reform of the truly perhaps the greatest honor that consume. During consideration of this IRS in four decades. It will make the could be bestowed upon anyone. The resolution, all time yielded is for the IRS more user-friendly, among other fact that the great people of Brooklyn purpose of debate only. things, establishing an independent and Staten Island have given me the (Mr. DREIER asked and was given governing board and shifting the bur- honor and the privilege and the oppor- permission to revise and extend his re- den of proof from the taxpayer to the tunity to serve them in the U.S. House marks and include extraneous mate- IRS in disputes that reach Tax Court. of Representatives is something that rial.) These reforms will make the IRS could not be eclipsed as a public serv- Mr. DREIER. Mr. Speaker, this rule more accountable to the American peo- ant. makes in order H.R. 2676, the IRS Re- ple. They will enhance the fairness of On a personal note, let me thank structuring and Reform Act of 1997, the tax collection process by giving the from the bottom of my heart my lovely under a closed rule providing for 2 taxpayer the benefit of the doubt when wife Mary Pat; my mother and father, hours of debate in the House equally he or she has cooperated with the IRS Beth and Vito; and all my friends and divided and controlled by the chairman and has documented evidence of com- family who made this journey down to and ranking minority member of the pliance. Washington to share this special day Committee on Ways and Means. These reforms will not solve the with me. My son, the essence of our The rule provides that the amend- more intractable problems brought on being, is not here with us, Dylan, but ment in the nature of a substitute rec- by a complicated and inefficient Tax in absentia. We have our new child to ommended by the House Committee on Code itself. The solutions to those be, my wife was expecting our second Ways and Means, as modified by the problems require comprehensive re- child yesterday, and she said that if I noncontroversial amendments printed form of the Internal Revenue Code, deliver, she will deliver. We are wait- in the report to accompany this rule, which I hope very much the House will ing. be considered as adopted. address next year. But the reforms con- In conclusion, not everyone voted for The first amendment simply clarifies tained in H.R. 2676 will go a long way me yesterday, but to the people of the authorization for low-income tax- toward protecting the rights of tax- Brooklyn and Staten Island and payer clinics and the salaries of mem- payers, making the IRS more account- throughout this great, great country, bers of the IRS Oversight Board to ad- able, and restoring public confidence in the best in the history of the world, let dress Budget Act violations. the way the IRS enforces our tax laws. me say that I will never break my cov- The second amendment clarifies that Mr. Speaker, I urge my colleagues to enant with them to represent every IRS management and employees may support this very fair and balanced member of my congressional district address any flexibility issues in a dem- rule, and I urge strong support, biparti- and to fight for what I believe in, fight onstration project. san support, of this bill. for this great country, fight for the The third amendment is a Rules Mr. Speaker, I include the following extraneous material for the RECORD: rights and fight for freedom for all of Committee substitute making a num- us. Thank you very, very much. This is ber of clarifying and technical changes EXPLANATION OF RULES COMMITTEE SUBSTITUTE TO SECTION 422 OF H.R. 2676 a tremendous honor. to section 422 relating to the Joint As reported by the House Committee on f Committee on Taxation’s preparation of a tax complexity analysis. Ways and Means, Section 422 of H.R. 2676 re- INTERNAL REVENUE SERVICE RE- quires the Joint Committee on Taxation to The fourth amendment adds the text provide a ‘‘Tax Complexity Analysis’’ for leg- STRUCTURING AND REFORM ACT of H.R. 2645, the Tax Technical Correc- islation reported by the House Committee on OF 1997 tions Act of 1997, which makes biparti- Ways and Means and the Senate Committee Mr. DREIER. Mr. Speaker, by direc- san and noncontroversial corrections on Finance and all conference reports that tion of the Committee on Rules, I call to reflect the intent of the Taxpayer would amend the Internal Revenue Code. The analysis would identify those provisions in a up House Resolution 303 and ask for its Relief Act of 1997. Mr. Speaker, I want to applaud the bill or conference report that the staff of the immediate consideration. Joint Committee on Taxation determines The Clerk read the resolution, as fol- gentleman from Texas [Mr. ARCHER] would add significant complexity or sim- lows: and the original sponsors of this bipar- plification to the tax laws. If the report ac- tisan IRS reform bill, the gentleman H. RES. 303 companying such legislation does not in- from Ohio [Mr. PORTMAN] and the gen- clude a Tax Complexity Analysis, the legis- Resolved, That upon the adoption of this tleman from Maryland [Mr. CARDIN]. lation would be subject to a point of order in resolution it shall be in order without inter- the House and Senate. vention of any point of order to consider in Thanks to their tremendous skill and determination in moving this historic The Rules Committee substitute makes a the House the bill (H.R. 2676) to amend the number of clarifying and technical changes Internal Revenue Code of 1986 to restructure bill forward, we are about to end once to Section 422. and reform the Internal Revenue Service, and for all some of the most egregious For purposes of the requirement that the and for other purposes. The bill shall be con- and abusive practices of the Internal Joint Committee on Taxation provide a ‘‘Tax sidered as read for amendment. The amend- Revenue Service. Complexity Analysis,’’ the term ‘‘legisla- ment in the nature of a substitute rec- I also want to commend the gen- tion’’ is further defined as ‘‘bills or joint res- ommended by the Committee on Ways and tleman from Ohio [Mr. PORTMAN] for olutions’’ reported by the House Committee Means now printed in the bill, modified by his efforts as cochairman of the bipar- on Ways and Means, the Senate Committee the amendments printed in the report of the on Finance or a committee of conference. Committee on Rules accompanying this res- tisan National Commission on Restruc- For purposes of compliance with Section olution, shall be considered as adopted. All turing the Internal Revenue Service. 422, the Committee involved shall either in- points of order against the bill, as amended, The Commission conducted a yearlong clude the Tax Complexity Analysis in the H10002 CONGRESSIONAL RECORD — HOUSE November 5, 1997 committee report or cause it to be printed in should proceed with the consideration Mr. Speaker, as a cosponsor of H.R. the Congressional Record prior to consider- of this legislation in order to speed it 2676, I am delighted that the Congress ation of the legislation in the House and on its way to the President’s desk. is taking action on this matter prior to Senate. Mr. Speaker, in my nearly 19 years in References to ‘‘the staff’’ of the Joint Com- our adjournment for the year. I encour- mittee on Taxation are removed. Congress, I have received many, many age my colleagues to support the rule Tax Complexity Analysis is defined as ‘‘a complaints from my constituents re- in order to move quickly to the consid- report which is prepared by the Joint Com- garding their difficulties in resolving eration of this landmark legislation. mittee on Taxation and which identifies the disputes with the Internal Revenue Mr. Speaker, I reserve the balance of provisions of the legislation adding signifi- Service. The report of the Portman- my time. cant complexity or providing significant Kerrey Commission, which detailed simplification (as determined by the Joint Mr. DREIER. Mr. Speaker, I yield 2 abuses and mismanagement within the minutes to the gentleman from Committee on Taxation) and includes the agency coupled with recent congres- basis for such determination.’’ Sanibel, FL [Mr. GOSS], my very good Language containing the point of order in sional hearings which revealed very friend and the distinguished chairman the House of Representatives with respect to publicly a number of disturbing abuses of the Subcommittee on Budget and legislation reported by the Committee on perpetuated—perpetrated by the IRS Legislative Process and the Permanent Ways and Means and by a committee of con- against taxpayers have provided ample Select Committee on Intelligence. ference is stricken from Section 8024 of the evidence that the many complaints we (Mr. GOSS asked and was given per- Internal Revenue Code and inserted in the have all heard are based on real prob- mission to revise and extend his re- rules of the House of Representatives. Spe- lems for real people. cifically: Mr. Speaker, while the IRS must ful- marks.) Clause 2(l) of House rule XI is amended to fill its mission of administering our tax Mr. GOSS. Mr. Speaker, I thank my require the report of the Committee on Ways laws and enforcing collection, the IRS distinguished friend from the greater and Means on any bill or joint resolution cannot be permitted to abuse the metropolitan downtown area of Clare- containing any provision amending the In- mont, CA, the vice chairman of the ternal Revenue Code of 1986 to contain a Tax rights of American taxpayers. H.R. 2676 Complexity Analysis unless the Committee will go a long way toward correcting Committee on Rules and leader of causes to have such Analysis printed in the abuses and ensuring that the agency is many good causes in this House, for Congressional Record prior to the consider- restructured in such a way that honest yielding me this time, and I rise in sup- ation of the bill or joint resolution; and taxpayers need not fear undue harass- port of his rule. It is a closed rule, but House rule XXVIII is amended to prohibit ment and reprisals from the IRS. it is a good rule; it is time tested for consideration of a conference report which This legislation contains several pro- debating tax-related bills under the ju- contains any provision amending the Inter- visions which will substantially risdiction of the Committee on Ways nal Revenue Code unless the accompanying and Means. joint statement of managers contains a Tax strengthen taxpayers’ rights in dealing Complexity Analysis, unless such Analysis is with the IRS. This bill makes it more For years, millions of Americans printed in the Congressional Record prior to difficult for the IRS to hold a spouse have known what we are today finally the consideration of the report. responsible for mistakes made on tax- acknowledging here on the floor of the payer returns by the other spouse. It House, that the IRS is inefficient, it is COMMITTEE ON RULES, allows taxpayers to sue the Federal unaccountable, and it is often down- HOUSE OF REPRESENTATIVES, Government for up to $100,000 in civil right abusive for the very people who Washington, DC, October 28, 1997. damages caused by IRS employees who pay the salaries, the American tax- Hon. BILL ARCHER, negligently disregard tax laws, and in Chairman, Committee on Ways and Means, payer. Even the most routine audit can Longworth House Office Building, Wash- those cases which come before the U.S. strike fear in the hearts of Americans, ington, DC. Tax Court, places the burden of proof and even more disturbing is the belief DEAR MR. CHAIRMAN: I am writing concern- on the IRS rather than on the tax- by many Americans that the IRS tar- ing H.R. 2676, The Internal Revenue Service payer. gets based on partisan political motive. Restructuring and Reform Act of 1997, which b 1115 The facts serve to underscore their your committee ordered reported on October anxiety. In 1993, the IRS gave the 22 by a vote of 33–4. These are but a small part of this bill wrong answer to taxpayer questions This legislation contains provisions in but important reforms that will help millions of times. Last year, only one Title IV, Congressional Accountability for all honest and law-abiding taxpayers. the Internal Revenue Service, which fall Mr. Speaker, the bill also establishes in five calls to the IRS customer hot- within the jurisdiction of the Committee on an oversight board for the IRS which line apparently got through, and even Rules. then we were not sure the answer was The Committee on Rules does not intend will bring private sector expertise to the management and administration of right. to consider this bill as a matter of original Today we are taking the first con- jurisdiction. It is the intention of the Com- the agency. The board will not have mittee to address several concerns with the any responsibility for or authority over crete steps to clean up this agency. proposed language in Title IV during the the development and formulation of Congressional hearings have dem- Rules Committee’s consideration of an ap- Federal tax policy but would, instead, onstrated clearly and poignantly the propriate rule for this legislation. work to ensure that the agency works need for structural reform at the IRS, I reserve jurisdiction of the Committee on for the benefit of taxpayers and the and we are acting. Built on the rec- Rules over all bills relating to the rules, country as a whole. ommendations of the bipartisan com- joint rules, and the order of business of the mission chaired by the gentleman from House. It would also be my intention to be I am disappointed, however, that the Ohio [Mr. PORTMAN] and the gentleman represented on the conference committee on Committee on Rules did not provide for this bill. Thank you for your consideration. the consideration of an amendment from Maryland [Mr. CARDIN], H.R. 2676 Sincerely, that I, along with my colleague from will create mechanisms to ensure that GERALD B. SOLOMON, Pennsylvania, Mr. GEKAS, sought to the IRS serves Americans with the re- Chairman. have made part of H.R. 2676. spect and dignity that we all deserve. Mr. Speaker, I reserve the balance of Our amendment seeks to correct a For starters, the bill creates an inde- my time. provision in current law which requires pendent oversight board composed of Mr. FROST. Mr. Speaker, I yield my- that local governments file W–2 forms private citizens. The board will place a self such time as I may consume. for poll workers in spite of the fact needed check on the excesses of the Mr. Speaker, I rise in support of H.R. that these workers are, for the most agency as well as restore accountabil- 2676, the Internal Revenue Service Re- part, retired persons who earn only a ity for the American taxpayer. By structuring and Reform Act of 1997, and hundred dollars or so for their work on changing the burden of proof in tax this rule which provides for its consid- election day. This requirement places a court proceedings, H.R. 2676 will make eration. The rule is closed, but because heavy financial and administrative sure that law-abiding taxpayers are this is vitally important legislation burden on localities. I would hope that guaranteed the same basic rights of- and is supported by both Democrats in the not too distant future the Con- fered in other judicial proceedings. and Republicans, liberals, moderates gress will fix what is an onerous burden They are still innocent until proven and conservatives, I believe the House for local government. guilty, which is our way. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10003

After weeks of stops and starts, hesi- gentleman from New York [Mr. RAN- guess I am glad because today we fi- tation, rhetoric, the Clinton adminis- GEL], for management of this bill, but nally get a chance to see that on the tration has finally decided to join our particularly I want to commend the House floor. effort in these first steps. They recog- gentleman from Ohio [Mr. PORTMAN] What I am sad about, to be quite hon- nize this is a good effort. I welcome the and the gentleman from Maryland [Mr. est, is I have offered this bill for 10 President’s conversion, and I urge my CARDIN] for their leadership on manag- years and could never get a hearing colleagues to support this fair rule and ing this bill as well because this legis- from my Democrat colleagues. I be- this important bipartisan bill. lation is such an important victory for lieve today’s legislation will probably Mr. FROST. Mr. Speaker, I yield 2 middle class taxpayers. continue to keep a majority in this minutes to the gentleman from Mary- There is no agency in more need of House for Republicans. And I know land [Mr. CARDIN]. reform than the Internal Revenue Democrats are saying, why does Mr. Mr. CARDIN. Mr. Speaker, I want to Service, and that is why we all stand TRAFICANT say that? I think the Demo- thank my friend from Texas [Mr. here today in support of very impor- crat Party is going to have to deal with FROST] for yielding me this time. tant legislation, legislation that is the substantive issues and problems of I want to compliment the Committee really a long time coming, but legisla- our country if we want to take the on Rules for bringing out this rule, and tion that is a big victory for the middle House back. I hope that it will receive strong sup- class. I want to thank the Republican port by both sides of the aisle. There are two very, very important Party for including the Traficant pro- During the consideration of the un- changes, fundamental changes, that vision. I want to thank the gentleman derlying bill by the Committee on are included in this legislation I would from Texas [Mr. ARCHER] and the gen- Ways and Means, there was only one like to note, and probably the most im- tleman from Ohio [Mr. PORTMAN], and I amendment that was not approved by portant one is the one which shifts the want to thank the gentleman from New the committee that was offered. I want burden of proof off the backs of the York [Mr. RANGEL] and the gentleman to thank the Committee on Rules for taxpayer and on to the IRS. There is no from Maryland [Mr. CARDIN]. In all dealing with that amendment by the greater complaint that I hear back fairness, they were not in that position gentleman from California [Mr. STARK] home in Illinois than, when someone is to make those decisions years ago, and in the self-executing rule that adopts audited by the IRS, they are treated as maybe we would have had more success the amendment. So we have really guilty until proven innocent, whereas had we had it. taken care of all the concerns of Mem- if someone is in a criminal court, they But I think there are some other peo- bers that have offered changes. are innocent until proven guilty. This ple that have to be thanked. My strat- The reason why this rule and the un- legislation gives the taxpayers, those egy was to get the American people to derlying bill will receive strong bipar- who play by the rules, work hard, and support that legislation. The White tisan support is that it was developed pay their taxes on time, the same pro- House never wanted it. Quite frankly, by the National Commission on Re- tections with the IRS that one enjoys no one wanted it. And now 98 percent of structuring the IRS, and it was adopted in the courtroom. That is a big victory the American people support the bur- in a bipartisan manner in that commis- for the middle class. den of proof shift in a civil tax case, sion. And during this process, we also the No. 1 supported bill in the Con- I particularly want to compliment learned about some of the impact of gress. I want to thank Rush Limbaugh, our colleague, the gentleman from what the IRS has done in the past and I want to thank Michael Reagan, I Ohio [Mr. PORTMAN], for the work that how they treat human beings. One of want to thank Mary Matalin, I want to he did in leading that commission and the issues that we also address in this thank Blanquita Cullum, I want to keeping us focused on dealing with the is a particularly important issue to thank Jane Wallace and Bay Buchanan problems of the IRS so that we could those that we call the unlucky and in- and Pat Buchanan. I want to thank bring the bill to the floor in a way that nocent spouse. Ron Verb and Ron Novak. I want to it could receive strong support by all We discovered in many cases that thank Jeff and Flash Talk Show out of Members of this House. someone who is a deadbeat parent is Cleveland and the great work they did I also want to compliment the gen- also a deadbeat taxpayer. In a case in the Midwest. I want to thank Jack tleman from Texas [Mr. ARCHER], the where you have a deadbeat dad who is Anderson, George Will, the gentleman chairman of the Committee on Ways not paying his child support and not from New York [Mr. SOLOMON], Joseph and Means, and the gentleman from paying his taxes, who do my colleagues Sobran. I want to thank everyone in New York [Mr. RANGEL], the ranking think the IRS went after? That poor, America who helped to bring this day member. The Committee on Ways and unlucky, innocent working mom with about. And I want to again commend Means took a good bill and made it bet- the kids whose husband is not paying the Republican Party; they have done ter, and we worked in a bipartisan way the child support. And the IRS showed the right thing. to do that. up wanting to collect his taxes from Now just let me say this, that I do By adopting this rule, this House has her. This legislation puts in place more not know how much time I have left, the opportunity to pass today a bill protections to protect the unlucky, in- but years ago a family in North Caro- that will deal with the problems at the nocent spouse. lina by the name of Counsel had a prob- IRS before the next tax season. I hope These are two important victories, lem, and Alex Counsel actually took that what we are doing here in this shifting the burden of proof so that his life, and when he did so, he left a House, the other body will follow suit someone is innocent until proven message in the form of a suicide note so that we can pass meaningful reform guilty with the IRS, and also another to his wife. He said, Kay, I have taken of the IRS now to help our taxpayers important victory is protecting the un- my life in order to provide money for before April of next year. lucky and innocent spouse. you and our family to fight the IRS, Mr. DREIER. Mr. Speaker, I yield 2 My colleagues, this legislation de- which is out of control and has taken minutes to the gentleman from Morris, serves bipartisan support, and it is a liens against our property illegally. I IL [Mr. WELLER], my very good friend, big victory. have made the only decision I can, a member of the Committee on Ways Mr. FROST. Mr. Speaker, I yield 4 Kay. Take the insurance money and and Means. minutes to the gentleman from Ohio save our good name. (Mr. WELLER asked and was given [Mr. TRAFICANT]. My colleagues, what has happened to permission to revise and extend his re- (Mr. TRAFICANT asked and was us? How did we allow the greatest marks.) given permission to revise and extend tenet of America’s freedom, innocent Mr. WELLER. Mr. Speaker, let me his remarks.) until proven guilty, the accuser carries begin as I rise in support of this rule Mr. TRAFICANT. Mr. Speaker, today the burden, to be shifted like this in a and this bill to commend the chairman is a day that I am very glad to see court of law? I mean, what has hap- of the Committee on Ways and Means, come, and in a way I am also sad. For pened to us? the gentleman from Texas [Mr. AR- 10 years I have worked to shift the bur- Then you have IRS agents testifying CHER], and the ranking member, the den of proof in the civil tax case, and I behind screens with voice scramblers H10004 CONGRESSIONAL RECORD — HOUSE November 5, 1997 because they, too, are afraid of the forms and requirements they are faced with NE [Mr. CHRISTENSEN], the future Gov- IRS. each year will result in a demanding visit by ernor. Now I see some of the Democrat an IRS agent or even a severe punishment. Mr. CHRISTENSEN. Mr. Speaker, I staffers laughing. Man, we have Today the IRS is a bureaucracy out of control thank my friend for yielding me this laughed on this one for sure. because of the lack of proper checks and bal- time. It is the right thing to do. I support ances, which are pillars of the American sys- Mr. Speaker, this is a great day. It is this rule, I support this bill, and I want tem of government. a great day for all of us, but it is a to compliment Chairman BILL ARCHER, In recognition of this out of control bureauc- great day for the gentleman from Ohio because without the gentleman from racy and the growing cries for fundamental re- [Mr. TRAFICANT]. There has not been Texas [Mr. ARCHER] standing up to form by the American people, the National anybody who has been in the well both the White House and the other Commission on Restructuring the IRS, chaired fighting for this day longer, more ardu- body, my provision still is not free and by Representative PORTMAN and Senator ously, than he. It is hard to believe clear, and I predict the other body will KERREY of Nebraska was established. Its year- why some staffers over there on the challenge it, and I predict the White long mission was to make recommendations Democrat side are scowling at the gen- House will come out against it, and for modernizing and improving its efficiency tleman and have their arms crossed. now the IRS is putting the spin: It is and taxpayer services. On June 25, 1997, the They just do not get it. They do not not really going to do that much. Commission issued a comprehensive report understand what the IRS has done to Well, just years ago they said it was making recommendations relating to the exec- the taxpayer. going to bust the bank and it was going utive branch governance and management of The gentleman’s provision on taking to make tax protesters and tax cheats the IRS, congressional oversight of the IRS, the burden of proof off the taxpayer is win out. I think the IRS has given us a personnel flexibility, customer service and going to turn what has been a lopsided lot of lies over the years, and I believe compliance, technology modernization, elec- situation for a number of years and this bill will help to straighten that tronic filing, tax law simplification, taxpayer turn it back in favor of the taxpayer. out. rights, and financial accountability. In America, we have always known So I am sad to see that it is not the These extensive recommendations provided the principle that one is presumed in- Democrat Party that has brought the the foundation for the legislation this House nocent until proven guilty. But in the bill, but I commend the Republicans. will be considering today. IRS, as long as I have known about it Mr. DREIER. Mr. Speaker, I yield H.R. 2676, the IRS Restructuring and Re- and as long as I have heard the gen- myself such time as I may consume. form Act, introduced by Representatives AR- tleman from Ohio [Mr. TRAFICANT] Let me first say that I want to con- CHER, PORTMAN, and CARDIN, builds on the talking about it, one is guilty, and one gratulate my friend from Ohio. I re- commission's recommendations to form a has to prove one’s innocence. His provi- member very well when he took me to comprehensive IRS reform package. sion is going to change that. the well and had me sign a discharge For example, the bill establishes the Internal So I thank the gentleman from Ohio petition to release this burden of proof Revenue Service Oversight Board, within the for his fight, and I thank him for ev- legislation, and it has taken a long Treasury Department, whose general respon- erything that he is doing. Nebraskans time getting to this point. I remember sibilities are to oversee the Internal Revenue thank the gentleman, and western Ne- he told me that I might be in trouble Service in its administration, management, braskans thank the gentleman. As I for signing that discharge petition conduct, direction and supervision of the exe- have talked to them a number of times, when he stood over me as I did it, but cution and application of our country's internal they wanted the gentleman from Ohio I still followed his directive. revenue laws. [Mr. TRAFICANT] to come out to Ne- Mr. Speaker, I yield such time as he The bill also makes it unlawful for the Presi- braska and talk about IRS reform and may consume to the gentleman from dent, Vice President, their employees and all talk about changing the way things are Glens Falls, NY [Mr. SOLOMON], my Cabinet heads to request that any officer or done in Washington. friend and the chairman of the Com- employee of the IRS conduct or terminate an Mr. Speaker, the Department of mittee on Rules. audit or begin or terminate an investigation Treasury could have fixed this, but they never got it done, they never at- b with respect to any particular taxpayers. 1130 Perhaps even more important, this reform tempted it. But the gentleman from Mr. SOLOMON. I thank the gen- package shifts the burden of proof in any court Ohio [Mr. PORTMAN] and the gentleman tleman from Claremont, CA [Mr. tax proceeding from the taxpayer to the Sec- from Nebraska [Mr. KERREY], on the DREIER], the vice chairman of the Com- retary of the Treasury. This bill will greatly in- Senate side, put this legislation to- mittee on Rules, for giving me the time crease the accountability and efficiency of the gether with the help of my chairman, to request unanimous consent to revise IRS and will help to restore the confidence the gentleman from Texas [Mr. AR- and extend my remarks and to praise and faith of the American people in its govern- CHER]. the gentleman from Texas [Mr. AR- ment. This provision also as an authority CHER]; the gentleman from Ohio [Mr. Mr. Speaker, I would also be remiss if I did called the oversight board that is going PORTMAN]; the gentleman from Califor- not commend our colleagues Chairman BILL to be having some real citizens that are nia [Mr. DREIER]; and especially the ARCHER and Representative ROB PORTMAN of nongovernmental citizens putting their gentleman from Ohio [Mr. TRAFICANT]. the Ways and Means Committee for their expertise to work. I believe that this Without him, this legislation never steadfast and thorough efforts in producing board will provide some commonsense would have reached this floor, and I this legislation. oversight that is much needed in this commend him for it. The bipartisan work of the commission com- area. Mr. Speaker, I thank the gentleman from bined with the bipartisan efforts of the Ways The IRS has got to do a better job of California for yielding me the time. and Means Committee have produced mean- providing fair tax treatment that it Mr. Speaker, a Washington Post magazine ingful reform that will be to the benefit of every has been commissioned to do. This bill spoof in December of 1991 on the role of the American taxpayer. is a small step in the right direction IRS succinctly characterizes many Americans Mr. Speaker, the Constitution grants this until we pull out the IRS by its roots, view of the IRS today. It read, ``In a sweeping Congress the authority to raise the revenue as my chairman has hoped to do for a post-coup reform move, Gorbachev abolished necessary to run the Federal Government. very long time, and move to either a the Communist Party and fired thousands of While I would contend that this Congress has sales tax or a flat tax approach. This is entrenched hard-line Kremlin bureaucrats, all a long way to go toward reforming our overall an intermediary step; it is a step in the of whom were immediately hired by the Inter- tax system, this first reform effort in four dec- right direction. I thank the gentleman nal Revenue Service.'' ades of the agency charged with collecting from New York for assisting us with Now we know that IRS employees are not that revenue, is a giant leap in responsibility this. He has been a great support and former Kremlin agents but the characterization fulfilling this constitutional duty. we thank him for his help. of IRS agents as part of an American Gestapo For these reasons, I urge all of my col- Mr. Speaker. I rise in strong support today contingent strikes a nerve among the Amer- leagues to support this fair rule and to support for H.R. 2676, the Internal Revenue Service ican people. this historic legislation. Restructuring and Reform Act of 1997. Many taxpayers are forced to live in fear Mr. DREIER. Mr. Speaker, I yield 2 Some say the three most frightening letters that making a minor error in the myriad tax minutes to the gentleman from Omaha, of the alphabet are IRSÐand for good reason. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10005 The IRS is one of the most bureaucratic, put it together on the Committee on and the gentleman from Ohio [Mr. outdated, and inefficient government agencies Ways and Means. PORTMAN] and others have made this and it touches every hard-working, tax-paying I support the change that puts the day possible, and I am very happy that American. burden of proof on the IRS, in tax dis- we have seen our colleagues on the The IRS Restructuring and Reform Act putes that come before the IRS tax other side of the aisle come, not quite would help fix what ails the IRS. court. People’s lives have been turned kicking and screaming, but they have In America, people are presumed innocent into a living hell by a system that as- now come enthusiastically in support until proven guilty. In the IRS, it is the other sumed they were guilty as charged and of what I think is very good public pol- way aroundÐthe taxpayer bears the burden of before they actually knew what they icy. proving himself or herself innocent. were guilty of. Again, I think we un- With that, I urge support of the pre- This bill shifts the burden of proof in court derstand that that burden of proof is so vious question, support of the rule and proceedings from the taxpayer to the IRS. important because if a person accused support of the bill that will come from This bill also creates an Independent Over- of a criminal crime in our country is my friends on the Committee on Ways sight Board that includes non-governmental innocent until proven guilty, we need and Means. experts who can bring new thinking and a to do that at least in the tax courts of Mr. Speaker, I yield back the balance more tax-payer oriented culture to the IRS. our land. of my time, and I move the previous If the Department of Treasury could have I am also pleased that the President question on the resolution. fixed the IRS, they would have done so al- will continue to appoint the IRS Com- The previous question was ordered. ready. missioner and to remove the Commis- The SPEAKER pro tempore. The This oversight board will have real power sioner at will. As we increase the power question is on the resolution. and authorityÐit won't just be another govern- and the influence of the Independent The resolution was agreed to. mental advisory board. Advisory Board, it is important to A motion to reconsider was laid on Those of us committed to easing the burden make sure the final authority rests the table. on taxpayers will continue to work to replace with an elected office; and whether on b 1145 the income tax with a more simple and fair the Republican side one agrees with Mr. BUNNING. Mr. Speaker, pursu- Tax Code. this President or not, it is important ant to House Resolution 303, I call up But as long as we have an income tax, the that an elected official have that au- the bill (H.R. 2676) to amend the Inter- IRS must do a better job of providing fair treat- thority, because the buck stops there. nal Revenue Code of 1986 to restructure ment and efficient customer service to the Na- Taxpayers also receive other rights and reform the Internal Revenue Serv- tion's taxpayers. This bill is a step in that di- in the bill, such as innocent spouses ice, and for other purposes, and ask for rection. will no longer be held responsible by its immediate consideration in the I urge my fellow colleagues to cast their mistakes made by the other spouse on vote for a more fair and efficient IRS for Amer- House. tax returns. That is why I encourage The Clerk read the title of the bill. ica's taxpayers. Thank you Mr. Speaker, I my colleagues to vote for the bill and The SPEAKER pro tempore (Mr. yield back the balance of my time. the rule. SUNUNU). Pursuant to House Resolu- Mr. FROST. Mr. Speaker, I yield 2 Mr. Speaker, I rise in support of the IRS re- tion 303, the amendment in the nature minutes to the gentleman from Texas form bill. of a substitute printed in the bill, [Mr. GREEN]. Mr. Speaker, I believe the bill we have be- modified by the amendments printed in Mr. GREEN. Mr. Speaker, I would fore us will bring much-needed reform to the like to thank my colleague from Texas House Report 105–380, is adopted. Internal Revenue Service and Relief to those The text of the committee amend- and a member of the Committee on Americans who are audited to be treated fair- ment in the nature of a substitute, as Rules for allowing me to speak in sup- ly. modified by the amendments printed in port of not only the rule today, but As a long-time sponsor of the bill by Mr. House Report 105–380, is as follows: also the IRS reform bill. TRAFICANT, I support the change that will place H.R. 2676 As a cosponsor of the bill of the gen- the burden of proof on the IRS in most tax dis- Be it enacted by the Senate and House of Rep- tleman from Ohio [Mr. TRAFICANT] ear- putes that will come before the IRS Tax Court. lier, I support one of the issues particu- resentatives of the United States of America in As the recent congressional hearings dem- Congress assembled, larly that is in this bill, where the re- onstrated, people's lives have turned into a liv- SECTION 1. SHORT TITLE; AMENDMENT OF 1986 form would allow for the burden of ing hell by a system that assumed they were CODE; TABLE OF CONTENTS. proof to be placed on the IRS instead of guilty as charged. (a) SHORT TITLE.—This Act may be cited as on the taxpayer, but I also want to I am also pleased the President will retain the ‘‘Internal Revenue Service Restructuring compliment both the Democratic Mem- the ability to appoint the IRS Commissioner and Reform Act of 1997’’. bers and the Republican Members and and to remove the Commissioner at will. As (b) AMENDMENT OF 1986 CODE.—Except as oth- my colleague the gentleman from erwise expressly provided, whenever in this Act we increase the power and influence of the an amendment or repeal is expressed in terms of Houston, Texas [Mr. ARCHER], on the independent advisory board, it is important to an amendment to, or repeal of, a section or bill. I know from the Republican side, place the final authority over the performance other provision, the reference shall be consid- we hear this is a small step, but let me of the Commissioner with the President. The ered to be made to a section or other provision tell my colleagues, this is a much big- buck stops there. of the Internal Revenue Code of 1986. ger step than it may be considered, be- Taxpayers will also receive other rights on (c) TABLE OF CONTENTS.— cause in my two terms here before, we this bill: innocent spouses will no longer be Sec. 1. Short title; amendment of 1986 Code; did not get to this point, even during held responsible for mistakes made by the table of contents. the last session of Congress, to get to other spouse on a tax return. And taxpayers TITLE I—EXECUTIVE BRANCH GOVERN- the point where we can really talk will be able to sue the Government for civil ANCE AND SENIOR MANAGEMENT OF about an IRS reform bill. damages caused by IRS employees who neg- THE INTERNAL REVENUE SERVICE Mr. Speaker, it is a bipartisan bill. I ligently disregard laws. Subtitle A—Executive Branch Governance and am glad the President decided to sup- I urge support for this bill. Senior Management port it, but there are a number of Mr. FROST. Mr. Speaker, if the gen- Sec. 101. Internal Revenue Service Oversight Democrats who supported the issue tleman has no other speakers, then we Board. Sec. 102. Commissioner of Internal Revenue; long before the Committee on Ways urge adoption of the rule and adoption other officials. and Means brought it up. If one is mis- of the bill, and yield back the balance Sec. 103. Other personnel. treated by a government agency, of our time. Sec. 104. Prohibition on executive branch influ- whether it be the IRS or HUD or any- Mr. DREIER. Mr. Speaker, I yield ence over taxpayer audits and one else, or EPA, it is not a Demo- myself such time as I may consume to other investigations. cratic or Republican problem, it is a say that this is our great opportunity Subtitle B—Personnel Flexibilities problem that we all need to address, to finally deal with this issue of the Sec. 111. Personnel flexibilities. and that is why I think it is important burden of proof, which has been a long TITLE II—ELECTRONIC FILING that this bill is a bipartisan bill today. time in coming. The leadership of the Sec. 201. Electronic filing of tax and informa- Again, I congratulate the people who gentleman from Texas [Mr. ARCHER] tion returns. H10006 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Sec. 202. Due date for certain information re- Subtitle I—Studies ‘‘(iv) 2 members shall be appointed for a term turns filed electronically. Sec. 381. Penalty administration. of 4 years. Sec. 203. Paperless electronic filing. Sec. 382. Confidentiality of tax return informa- Such terms shall begin on the date of appoint- Sec. 204. Return-free tax system. tion. ment. Sec. 205. Access to account information. TITLE IV—CONGRESSIONAL ACCOUNT- ‘‘(C) REAPPOINTMENT.—An individual who is TITLE III—TAXPAYER PROTECTION AND ABILITY FOR THE INTERNAL REVENUE described in paragraph (1)(A) may be appointed RIGHTS SERVICE to no more than two 5-year terms on the Over- Sec. 300. Short title. Subtitle A—Oversight sight Board. Subtitle A—Burden of Proof ‘‘(D) VACANCY.—Any vacancy on the Over- Sec. 401. Expansion of duties of the Joint Com- sight Board shall be filled in the same manner Sec. 301. Burden of proof. mittee on Taxation. as the original appointment. Any member ap- Sec. 402. Coordinated oversight reports. Subtitle B—Proceedings by Taxpayers pointed to fill a vacancy occurring before the Sec. 311. Expansion of authority to award costs Subtitle B—Budget expiration of the term for which the member’s and certain fees. Sec. 411. Funding for century date change. predecessor was appointed shall be appointed Sec. 312. Civil damages for negligence in collec- Sec. 412. Financial Management Advisory for the remainder of that term. tion actions. Group. ‘‘(E) SPECIAL GOVERNMENT EMPLOYEES.—Dur- Sec. 313. Increase in size of cases permitted on Subtitle C—Tax Law Complexity ing the entire period that an individual ap- small case calendar. Sec. 421. Role of the Internal Revenue Service. pointed under paragraph (1)(A) is a member of Subtitle C—Relief for Innocent Spouses and for Sec. 422. Tax complexity analysis. the Oversight Board, such individual shall be treated as— Taxpayers Unable To Manage Their Finan- TITLE V—CLARIFICATION OF DEDUCTION ‘‘(i) serving as a special government employee cial Affairs Due to Disabilities FOR DEFERRED COMPENSATION (as defined in section 202 of title 18, United Sec. 321. Spouse relieved in whole or in part of Sec. 501. Clarification of deduction for deferred States Code) and as described in section liability in certain cases. compensation. 207(c)(2) of such title 18, and Sec. 322. Suspension of statute of limitations on TITLE I—EXECUTIVE BRANCH GOVERN- ‘‘(ii) serving as an officer or employee referred filing refund claims during peri- ANCE AND SENIOR MANAGEMENT OF to in section 101(f) of the Ethics in Government ods of disability. THE INTERNAL REVENUE SERVICE Act of 1978 for purposes of title I of such Act. Subtitle D—Provisions Relating to Interest Subtitle A—Executive Branch Governance ‘‘(3) QUORUM.—6 members of the Oversight Sec. 331. Elimination of interest rate differen- and Senior Management Board shall constitute a quorum. A majority of tial on overlapping periods of in- members present and voting shall be required for SEC. 101. INTERNAL REVENUE SERVICE OVER- terest on income tax overpayments SIGHT BOARD. the Oversight Board to take action. ‘‘(4) REMOVAL.— and underpayments. (a) IN GENERAL.—Section 7802 (relating to the Sec. 332. Increase in overpayment rate payable Commissioner of Internal Revenue) is amended ‘‘(A) IN GENERAL.—Any member of the Over- to taxpayers other than corpora- to read as follows: sight Board may be removed at the will of the tions. President. ‘‘SEC. 7802. INTERNAL REVENUE SERVICE OVER- ‘‘(B) SECRETARY AND COMMISSIONER.—An in- Subtitle E—Protections for Taxpayers Subject to SIGHT BOARD. dividual described in subparagraph (B) or (C) of Audit or Collection Activities ‘‘(a) ESTABLISHMENT.—There is established paragraph (1) shall be removed upon termi- Sec. 341. Privilege of confidentiality extended to within the Department of the Treasury the In- nation of employment. taxpayer’s dealings with non-at- ternal Revenue Service Oversight Board (here- ‘‘(C) REPRESENTATIVE OF INTERNAL REVENUE torneys authorized to practice be- after in this subchapter referred to as the ‘Over- SERVICE EMPLOYEES.—The member described in fore Internal Revenue Service. sight Board’). paragraph (1)(D) shall be removed upon termi- Sec. 342. Expansion of authority to issue tax- ‘‘(b) MEMBERSHIP.— nation of employment, membership, or other af- payer assistance orders. ‘‘(1) COMPOSITION.—The Oversight Board filiation with the organization described in such Sec. 343. Limitation on financial status audit shall be composed of 11 members, as follows: paragraph. techniques. ‘‘(A) 8 members shall be individuals who are ‘‘(5) CLAIMS.— Sec. 344. Limitation on authority to require pro- not Federal officers or employees and who are ‘‘(A) IN GENERAL.—Members of the Oversight duction of computer source code. appointed by the President, by and with the ad- Board who are described in paragraph (1)(A) or Sec. 345. Procedures relating to extensions of vice and consent of the Senate. (D) shall have no personal liability under Fed- statute of limitations by agree- ‘‘(B) 1 member shall be the Secretary of the eral law with respect to any claim arising out of ment. Treasury or, if the Secretary so designates, the or resulting from an act or omission by such Sec. 346. Offers-in-compromise. Deputy Secretary of the Treasury. member within the scope of service as a member. Sec. 347. Notice of deficiency to specify dead- ‘‘(C) 1 member shall be the Commissioner of The preceding sentence shall not be construed to lines for filing Tax Court petition. Internal Revenue. limit personal liability for criminal acts or omis- Sec. 348. Refund or credit of overpayments be- ‘‘(D) 1 member shall be an individual who is sions, willful or malicious conduct, acts or omis- fore final determination. a representative of an organization that rep- sions for private gain, or any other act or omis- Sec. 349. Threat of audit prohibited to coerce resents a substantial number of Internal Reve- sion outside the scope of the service of such Tip Reporting Alternative Com- nue Service employees and who is appointed by member on the Oversight Board. mitment Agreements. the President, by and with the advice and con- ‘‘(B) EFFECT ON OTHER LAW.—This paragraph Subtitle F—Disclosures to Taxpayers sent of the Senate. ‘‘(2) QUALIFICATIONS AND TERMS.— shall not be construed— Sec. 351. Explanation of joint and several liabil- ‘‘(A) QUALIFICATIONS.—Members of the Over- ‘‘(i) to affect any other immunities and protec- ity. sight Board described in paragraph (1)(A) shall tions that may be available to such member Sec. 352. Explanation of taxpayers’ rights in be appointed solely on the basis of their profes- under applicable law with respect to such trans- interviews with the Internal Reve- sional experience and expertise in 1 or more of actions, nue Service. the following areas: ‘‘(ii) to affect any other right or remedy Sec. 353. Disclosure of criteria for examination ‘‘(i) Management of large service organiza- against the United States under applicable law, selection. tions. or Sec. 354. Explanations of appeals and collection ‘‘(ii) Customer service. ‘‘(iii) to limit or alter in any way the immuni- process. ‘‘(iii) Federal tax laws, including tax adminis- ties that are available under applicable law for Subtitle G—Low Income Taxpayer Clinics tration and compliance. Federal officers and employees. ‘‘(c) GENERAL RESPONSIBILITIES.— Sec. 361. Low income taxpayer clinics. ‘‘(iv) Information technology. ‘‘(v) Organization development. ‘‘(1) IN GENERAL.—The Oversight Board shall Subtitle H—Other Matters ‘‘(vi) The needs and concerns of taxpayers. oversee the Internal Revenue Service in its ad- Sec. 371. Actions for refund with respect to cer- In the aggregate, the members of the Oversight ministration, management, conduct, direction, tain estates which have elected Board described in paragraph (1)(A) should col- and supervision of the execution and applica- the installment method of pay- lectively bring to bear expertise in all of the tion of the internal revenue laws or related stat- ment. areas described in the preceding sentence. utes and tax conventions to which the United Sec. 372. Cataloging complaints. ‘‘(B) TERMS.—Each member who is described States is a party. Sec. 373. Archive of records of Internal Revenue in paragraph (1)(A) or (D) shall be appointed ‘‘(2) EXCEPTIONS.—The Oversight Board shall Service. for a term of 5 years, except that of the members have no responsibilities or authority with re- Sec. 374. Payment of taxes. first appointed under paragraph (1)(A)— spect to— Sec. 375. Clarification of authority of Secretary ‘‘(i) 1 member shall be appointed for a term of ‘‘(A) the development and formulation of Fed- relating to the making of elec- 1 year, eral tax policy relating to existing or proposed tions. ‘‘(ii) 1 member shall be appointed for a term of internal revenue laws, related statutes, and tax Sec. 376. Limitation on penalty on individual’s 2 years, conventions, failure to pay for months during ‘‘(iii) 2 members shall be appointed for a term ‘‘(B) law enforcement activities of the Internal period of installment agreement. of 3 years, and Revenue Service, including compliance activities November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10007

such as criminal investigations, examinations, ‘‘(4) PROCUREMENT OF TEMPORARY AND INTER- such determination may not take effect until 30 and collection activities, or MITTENT SERVICES.—The Chairperson of the days after the Secretary notifies the Committees ‘‘(C) specific procurement activities of the In- Oversight Board may procure temporary and on Ways and Means, Government Reform and ternal Revenue Service. intermittent services under section 3109(b) of Oversight, and Appropriations of the House of ‘‘(3) RESTRICTION ON DISCLOSURE OF RETURN title 5, United States Code. Representatives, the Committees on Finance, INFORMATION TO OVERSIGHT BOARD MEMBERS.— ‘‘(f) ADMINISTRATIVE MATTERS.— Government Operations, and Appropriations of No return, return information, or taxpayer re- ‘‘(1) CHAIR.—The members of the Oversight the Senate, and the Joint Committee on Tax- turn information (as defined in section 6103(b)) Board shall elect for a 2-year term a chairperson ation. may be disclosed to any member of the Oversight from among the members appointed under sub- ‘‘(3) CONSULTATION WITH BOARD.—The Com- Board described in subsection (b)(1)(A) or (D). section (b)(1)(A). missioner shall consult with the Oversight Any request for information not permitted to be ‘‘(2) COMMITTEES.—The Oversight Board may Board on all matters set forth in paragraphs (2) disclosed under the preceding sentence, and any establish such committees as the Oversight and (3) (other than paragraph (3)(A)) of section contact relating to a specific taxpayer, made by Board determines appropriate. 7802(d). a member of the Oversight Board so described to ‘‘(3) MEETINGS.—The Oversight Board shall ‘‘(b) ASSISTANT COMMISSIONER FOR EMPLOYEE an officer or employee of the Internal Revenue meet at least once each month and at such other PLANS AND EXEMPT ORGANIZATIONS.—There is Service shall be reported by such officer or em- times as the Oversight Board determines appro- established within the Internal Revenue Service ployee to the Secretary and the Joint Committee priate. an office to be known as the ‘Office of Employee on Taxation. ‘‘(4) REPORTS.—The Oversight Board shall Plans and Exempt Organizations’ to be under ‘‘(d) SPECIFIC RESPONSIBILITIES.—The Over- each year report to the President and the Con- the supervision and direction of an Assistant sight Board shall have the following specific re- gress with respect to the conduct of its respon- Commissioner of Internal Revenue. As head of sponsibilities: sibilities under this title.’’. the Office, the Assistant Commissioner shall be ‘‘(1) STRATEGIC PLANS.—To review and ap- (b) CONFORMING AMENDMENTS.— responsible for carrying out such functions as prove strategic plans of the Internal Revenue (1) Section 4946(c) (relating to definitions and the Secretary may prescribe with respect to or- Service, including the establishment of— special rules for chapter 42) is amended— ganizations exempt from tax under section ‘‘(A) mission and objectives, and standards of (A) by striking ‘‘or’’ at the end of paragraph 501(a) and with respect to plans to which part performance relative to either, and (5), I of subchapter D of chapter 1 applies (and with ‘‘(B) annual and long-range strategic plans. (B) by striking the period at the end of para- respect to organizations designed to be exempt ‘‘(2) OPERATIONAL PLANS.—To review the graph (6) and inserting ‘‘, or’’, and under such section and plans designed to be operational functions of the Internal Revenue (C) by adding at the end the following new plans to which such part applies) and other Service, including— paragraph: nonqualified deferred compensation arrange- ‘‘(A) plans for modernization of the tax sys- ‘‘(7) a member of the Internal Revenue Service ments. The Assistant Commissioner shall report tem, Oversight Board.’’. annually to the Commissioner with respect to ‘‘(B) plans for outsourcing or managed com- (2) The table of sections for subchapter A of the Assistant Commissioner’s responsibilities petition, and chapter 80 is amended by striking the item relat- under this section. ‘‘(C) plans for training and education. ing to section 7802 and inserting the following ‘‘(c) OFFICE OF TAXPAYER ADVOCATE.— ‘‘(1) IN GENERAL.— ‘‘(3) MANAGEMENT.—To— new item: ‘‘(A) recommend to the President candidates ‘‘(A) ESTABLISHMENT.—There is established in for appointment as the Commissioner of Internal ‘‘Sec. 7802. Internal Revenue Service Oversight the Internal Revenue Service an office to be Revenue and recommend to the President the re- Board.’’ known as the ‘Office of the Taxpayer Advocate’. Such office shall be under the supervision and moval of the Commissioner, (c) EFFECTIVE DATE.— direction of an official to be known as the ‘Tax- ‘‘(B) review the Commissioner’s selection, (1) IN GENERAL.—The amendments made by payer Advocate’ who shall be appointed with evaluation, and compensation of senior man- this section shall take effect on the date of the the approval of the Oversight Board by the agers, and enactment of this Act. Commissioner of Internal Revenue and shall re- ‘‘(C) review and approve the Commissioner’s (2) NOMINATIONS TO INTERNAL REVENUE SERV- port directly to the Commissioner. The Taxpayer plans for any major reorganization of the Inter- ICE OVERSIGHT BOARD.—The President shall sub- Advocate shall be entitled to compensation at nal Revenue Service. mit nominations under section 7802 of the Inter- the same rate as the highest level official report- ‘‘(4) BUDGET.—To— nal Revenue Code of 1986, as added by this sec- ing directly to the Commissioner of Internal ‘‘(A) review and approve the budget request of tion, to the Senate not later than 6 months after Revenue. the Internal Revenue Service prepared by the the date of the enactment of this Act. Commissioner, ‘‘(B) RESTRICTION ON SUBSEQUENT EMPLOY- ‘‘(B) submit such budget request to the Sec- SEC. 102. COMMISSIONER OF INTERNAL REVE- MENT.—An individual who is an officer or em- NUE; OTHER OFFICIALS. retary of the Treasury, and ployee of the Internal Revenue Service may be ‘‘(C) ensure that the budget request supports (a) IN GENERAL.—Section 7803 (relating to appointed as Taxpayer Advocate only if such the annual and long-range strategic plans. other personnel) is amended to read as follows: individual agrees not to accept any employment The Secretary shall submit the budget request ‘‘SEC. 7803. COMMISSIONER OF INTERNAL REVE- with the Internal Revenue Service for at least 5 NUE; OTHER OFFICIALS. referred to in paragraph (4)(B) for any fiscal years after ceasing to be the Taxpayer Advo- ‘‘(a) COMMISSIONER OF INTERNAL REVENUE.— year to the President who shall submit such re- cate. ‘‘(1) APPOINTMENT.— quest, without revision, to Congress together ‘‘(2) FUNCTIONS OF OFFICE.— ‘‘(A) IN GENERAL.—There shall be in the De- ‘‘(A) IN GENERAL.—It shall be the function of with the President’s annual budget request for partment of the Treasury a Commissioner of In- the Office of Taxpayer Advocate to— the Internal Revenue Service for such fiscal ternal Revenue who shall be appointed by the ‘‘(i) assist taxpayers in resolving problems year. President, by and with the advice and consent with the Internal Revenue Service, ‘‘(e) BOARD PERSONNEL MATTERS.— of the Senate, to a 5-year term. The appoint- ‘‘(ii) identify areas in which taxpayers have ‘‘(1) COMPENSATION OF MEMBERS.— problems in dealings with the Internal Revenue ‘‘(A) IN GENERAL.—Each member of the Over- ment shall be made without regard to political affiliation or activity. Service, sight Board who is described in subsection ‘‘(iii) to the extent possible, propose changes (b)(1)(A) shall be compensated at a rate not to ‘‘(B) VACANCY.—Any individual appointed to fill a vacancy in the position of Commissioner in the administrative practices of the Internal exceed $30,000 per year. All other members of the Revenue Service to mitigate problems identified Oversight Board shall serve without compensa- occurring before the expiration of the term for which such individual’s predecessor was ap- under clause (ii), and tion for such service. ‘‘(iv) identify potential legislative changes pointed shall be appointed only for the remain- ‘‘(B) CHAIRPERSON.—In lieu of the amount which may be appropriate to mitigate such prob- der of that term. specified in subparagraph (A), the Chairperson lems. ‘‘(C) REMOVAL.—The Commissioner may be re- of the Oversight Board shall be compensated at ‘‘(B) ANNUAL REPORTS.— a rate not to exceed $50,000. moved at the will of the President. ‘‘(i) OBJECTIVES.—Not later than June 30 of ‘‘(2) TRAVEL EXPENSES.—The members of the ‘‘(2) DUTIES.—The Commissioner shall have each calendar year, the Taxpayer Advocate Oversight Board shall be allowed travel ex- such duties and powers as the Secretary may shall report to the Committee on Ways and penses, including per diem in lieu of subsistence, prescribe, including the power to— Means of the House of Representatives and the at rates authorized for employees of agencies ‘‘(A) administer, manage, conduct, direct, and Committee on Finance of the Senate on the ob- under subchapter I of chapter 57 of title 5, Unit- supervise the execution and application of the jectives of the Taxpayer Advocate for the fiscal ed States Code, while away from their homes or internal revenue laws or related statutes and year beginning in such calendar year. Any such regular places of business for purposes of at- tax conventions to which the United States is a report shall contain full and substantive analy- tending meetings of the Oversight Board. party; and sis, in addition to statistical information. ‘‘(3) STAFF.—At the request of the Chair- ‘‘(B) recommend to the President a candidate ‘‘(ii) ACTIVITIES.—Not later than December 31 person of the Oversight Board, the Commis- for appointment as Chief Counsel for the Inter- of each calendar year, the Taxpayer Advocate sioner shall detail to the Oversight Board such nal Revenue Service when a vacancy occurs, shall report to the Committee on Ways and personnel as may be necessary to enable the and recommend to the President the removal of Means of the House of Representatives and the Oversight Board to perform its duties. Such de- such Chief Counsel. Committee on Finance of the Senate on the ac- tail shall be without interruption or loss of civil If the Secretary determines not to delegate a tivities of the Taxpayer Advocate during the fis- service status or privilege. power specified in subparagraph (A) or (B), cal year ending during such calendar year. Any H10008 CONGRESSIONAL RECORD — HOUSE November 5, 1997

such report shall contain full and substantive of the enactment of this Act who was appointed ‘‘(b) REPORTING REQUIREMENT.—Any officer analysis, in addition to statistical information, to such position before such date, the 5-year or employee of the Internal Revenue Service re- and shall— term required by section 7803(a)(1) of the Inter- ceiving any request prohibited by subsection (a) ‘‘(I) identify the initiatives the Taxpayer Ad- nal Revenue Code of 1986, as added by this sec- shall report the receipt of such request to the vocate has taken on improving taxpayer services tion, shall begin as of the date of such appoint- Chief Inspector of the Internal Revenue Service. and Internal Revenue Service responsiveness, ment. ‘‘(c) EXCEPTIONS.—Subsection (a) shall not ‘‘(II) contain recommendations received from (B) Section 7803(c)(1)(B) of such Code, as apply to— individuals with the authority to issue Tax- added by this section, shall not apply to the in- ‘‘(1) any request made to an applicable person payer Assistance Orders under section 7811, dividual serving as Taxpayer Advocate on the by the taxpayer or a representative of the tax- ‘‘(III) contain a summary of at least 20 of the date of the enactment of this Act. payer and forwarded by such applicable person most serious problems encountered by taxpayers, SEC. 103. OTHER PERSONNEL. to the Internal Revenue Service, including a description of the nature of such ‘‘(2) any request by an applicable person for (a) IN GENERAL.—Section 7804 (relating to the problems, effect of reorganization plans) is amended to disclosure of return or return information under ‘‘(IV) contain an inventory of the items de- read as follows: section 6103 if such request is made in accord- scribed in subclauses (I), (II), and (III) for ance with the requirements of such section, or which action has been taken and the result of ‘‘SEC. 7804. OTHER PERSONNEL. ‘‘(3) any request by the Secretary of the such action, ‘‘(a) APPOINTMENT AND SUPERVISION.—Unless Treasury as a consequence of the implementa- ‘‘(V) contain an inventory of the items de- otherwise prescribed by the Secretary, the Com- tion of a change in tax policy. scribed in subclauses (I), (II), and (III) for missioner of Internal Revenue is authorized to ‘‘(d) PENALTY.—Any person who willfully vio- which action remains to be completed and the employ such number of persons as the Commis- lates subsection (a) or fails to report under sub- period during which each item has remained on sioner deems proper for the administration and section (b) shall be punished upon conviction by such inventory, enforcement of the internal revenue laws, and a fine in any amount not exceeding $5,000, or ‘‘(VI) contain an inventory of the items de- the Commissioner shall issue all necessary direc- imprisonment of not more than 5 years, or both, scribed in subclauses (I), (II), and (III) for tions, instructions, orders, and rules applicable together with the costs of prosecution. which no action has been taken, the period dur- to such persons. ‘‘(e) APPLICABLE PERSON.—For purposes of ing which each item has remained on such in- ‘‘(b) POSTS OF DUTY OF EMPLOYEES IN FIELD this section, the term ‘applicable person’ ventory, the reasons for the inaction, and iden- SERVICE OR TRAVELING.—Unless otherwise pre- means— tify any Internal Revenue Service official who is scribed by the Secretary— ‘‘(1) the President, the Vice President, any responsible for such inaction, ‘‘(1) DESIGNATION OF POST OF DUTY.—The employee of the executive office of the President, ‘‘(VII) identify any Taxpayer Assistance Commissioner shall determine and designate the and any employee of the executive office of the Order which was not honored by the Internal posts of duty of all such persons engaged in Vice President, and Revenue Service in a timely manner, as specified field work or traveling on official business out- ‘‘(2) any individual (other than the Attorney under section 7811(b), side of the District of Columbia. General of the United States) serving in a posi- ‘‘(VIII) contain recommendations for such ad- ‘‘(2) DETAIL OF PERSONNEL FROM FIELD SERV- tion specified in section 5312 of title 5, United ministrative and legislative action as may be ap- ICE.—The Commissioner may order any such States Code.’’ propriate to resolve problems encountered by person engaged in field work to duty in the Dis- (b) CLERICAL AMENDMENT.—The table of sec- taxpayers, trict of Columbia, for such periods as the Com- tions for part I of subchapter A of chapter 75 is ‘‘(IX) identify areas of the tax law that im- missioner may prescribe, and to any designated amended by adding after the item relating to pose significant compliance burdens on tax- post of duty outside the District of Columbia section 7216 the following new item: payers or the Internal Revenue Service, includ- upon the completion of such duty. ‘‘Sec. 7217. Prohibition on executive branch in- ing specific recommendations for remedying ‘‘(c) DELINQUENT INTERNAL REVENUE OFFI- fluence over taxpayer audits and these problems, CERS AND EMPLOYEES.—If any officer or em- ‘‘(X) in conjunction with the National Direc- ployee of the Treasury Department acting in other investigations.’’ tor of Appeals, identify the 10 most litigated is- connection with the internal revenue laws fails (c) EFFECTIVE DATE.—The amendments made sues for each category of taxpayers, including to account for and pay over any amount of by this section shall apply to requests made recommendations for mitigating such disputes, money or property collected or received by him after the date of the enactment of this Act. and in connection with the internal revenue laws, Subtitle B—Personnel Flexibilities ‘‘(XI) include such other information as the the Secretary shall issue notice and demand to Taxpayer Advocate may deem advisable. SEC. 111. PERSONNEL FLEXIBILITIES. such officer or employee for payment of the (a) IN GENERAL.—Part III of title 5, United ‘‘(iii) REPORT TO BE SUBMITTED DIRECTLY.— amount which he failed to account for and pay Each report required under this subparagraph States Code, is amended by adding at the end over, and, upon failure to pay the amount de- the following new subpart: shall be provided directly to the committees de- manded within the time specified in such notice, scribed in clauses (i) and (ii) without any prior the amount so demanded shall be deemed im- ‘‘Subpart I—Miscellaneous review or comment from the Oversight Board, posed upon such officer or employee and as- ‘‘CHAPTER 93—PERSONNEL FLEXIBILITIES the Secretary of the Treasury, any other officer sessed upon the date of such notice and de- RELATING TO THE INTERNAL REVENUE or employee of the Department of the Treasury, mand, and the provisions of chapter 64 and all SERVICE or the Office of Management and Budget. other provisions of law relating to the collection ‘‘Sec. ‘‘(C) OTHER RESPONSIBILITIES.—The Taxpayer of assessed taxes shall be applicable in respect of ‘‘9301. General requirements. Advocate shall— such amount.’’. ‘‘9302. Flexibilities relating to performance man- ‘‘(i) monitor the coverage and geographic allo- (b) CONFORMING AMENDMENTS.— agement. cation of problem resolution officers, and (1) Subsection (b) of section 6344 is amended ‘‘9303. Staffing flexibilities. ‘‘(ii) develop guidance to be distributed to all by striking ‘‘section 7803(d)’’ and inserting ‘‘sec- ‘‘9304. Flexibilities relating to demonstration Internal Revenue Service officers and employees tion 7804(c)’’. projects. outlining the criteria for referral of taxpayer in- (2) The table of sections for subchapter A of ‘‘§ 9301. General requirements quiries to problem resolution officers. chapter 80 is amended by striking the item relat- ‘‘(3) RESPONSIBILITIES OF COMMISSIONER.—The ‘‘(a) CONFORMANCE WITH MERIT SYSTEM ing to section 7804 and inserting the following Commissioner shall establish procedures requir- PRINCIPLES, ETC.—Any flexibilities under this new item: ing a formal response to all recommendations chapter shall be exercised in a manner consist- submitted to the Commissioner by the Taxpayer ‘‘Sec. 7804. Other personnel.’’ ent with— Advocate within 3 months after submission to ‘‘(1) chapter 23, relating to merit system prin- (c) EFFECTIVE DATE.—The amendments made ciples and prohibited personnel practices; and the Commissioner.’’. by this section shall take effect on the date of ONFORMING AMENDMENTS.— ‘‘(2) provisions of this title (outside of this (b) C the enactment of this Act. (1) The table of sections for subchapter A of subpart) relating to preference eligibles. chapter 80 is amended by striking the item relat- SEC. 104. PROHIBITION ON EXECUTIVE BRANCH ‘‘(b) REQUIREMENT RELATING TO UNITS REP- ing to section 7803 and inserting the following INFLUENCE OVER TAXPAYER AUDITS RESENTED BY LABOR ORGANIZATIONS.— AND OTHER INVESTIGATIONS. new item: ‘‘(1) WRITTEN AGREEMENT REQUIRED.—Em- (a) IN GENERAL.—Part I of subchapter A of ployees within a unit with respect to which a ‘‘Sec. 7803. Commissioner of Internal Revenue; chapter 75 (relating to crimes, other offenses, labor organization is accorded exclusive recogni- other officials.’’ and forfeitures) is amended by adding after sec- tion under chapter 71 shall not be subject to the (2) Subsection (b) of section 5109 of title 5, tion 7216 the following new section: exercise of any flexibility under section 9302, United States Code, is amended by striking ‘‘SEC. 7217. PROHIBITION ON EXECUTIVE BRANCH 9303, or 9304, unless there is a written agreement ‘‘7802(b)’’ and inserting ‘‘7803(b)’’. INFLUENCE OVER TAXPAYER AUDITS between the Internal Revenue Service and the (c) EFFECTIVE DATE.— AND OTHER INVESTIGATIONS. organization permitting such exercise. (1) IN GENERAL.—The amendments made by ‘‘(a) PROHIBITION.—It shall be unlawful for ‘‘(2) DEFINITION OF A WRITTEN AGREEMENT.— this section shall take effect on the date of the any applicable person to request any officer or In order to satisfy paragraph (1), a written enactment of this Act. employee of the Internal Revenue Service to agreement— (2) CURRENT OFFICERS.— conduct or terminate an audit or other inves- ‘‘(A) need not be a collective bargaining (A) In the case of an individual serving as tigation of any particular taxpayer with respect agreement within the meaning of section 7103(8); Commissioner of Internal Revenue on the date to the tax liability of such taxpayer. and November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10009 ‘‘(B) may not be an agreement imposed by the such employee’s annual rate of basic pay may ‘‘(ii) meets the minimum qualification require- Federal Service Impasses Panel under section be made if the Commissioner finds such an ments for the position sought. 7119. award to be warranted based on such employ- ‘‘(2) ELIGIBILITY OF CERTAIN TEMPORARY EM- ‘‘(3) INCLUDIBLE MATTERS.—The written ee’s performance. PLOYEES.— agreement may address any flexibilities under ‘‘(B) NATURE OF AN AWARD.—A cash award ‘‘(A) IN GENERAL.—No temporary employee de- section 9302, 9303, or 9304, including any matter under this paragraph shall not be considered to scribed in subparagraph (B) shall be denied the proposed to be included in a demonstration be part of basic pay. opportunity to compete for an announced va- project under section 9304. ‘‘(C) TAX ENFORCEMENT RESULTS.—A cash cant competitive service position within the In- ‘‘§ 9302. Flexibilities relating to performance award under this paragraph may not be based ternal Revenue Service by reason of not having management solely on tax enforcement results. acquired competitive status. ‘‘(D) ELIGIBLE EMPLOYEES.—Whether or not ‘‘(B) DESCRIPTION.—An individual shall, for ‘‘(a) IN GENERAL.—The Commissioner of Inter- an employee is an employee who reports directly purposes of a position for which such individual nal Revenue shall, within a year after the date to the Commissioner of Internal Revenue shall, is applying, be considered a temporary employee of the enactment of this chapter, establish a per- for purposes of this paragraph, be determined described in this subparagraph if— formance management system which— under regulations which the Commissioner shall ‘‘(i) such individual is then currently serving ‘‘(1) subject to section 9301(b), shall cover all prescribe, except that in no event shall more as a temporary employee in the Internal Reve- employees of the Internal Revenue Service other than 8 employees be eligible for a cash award nue Service; than— under this paragraph in any calendar year. ‘‘(ii) such individual has completed at least 2 ‘‘(A) the members of the Internal Revenue ‘‘(E) LIMITATION ON COMPENSATION.—For pur- years of current continuous service in the com- Service Oversight Board; poses of applying section 5307 to an employee in petitive service under 1 or more term appoint- ‘‘(B) the Commissioner of Internal Revenue; connection with any calendar year to which an ments, each of which was made under competi- and award made under this paragraph to such em- tive procedures prescribed for permanent ap- ‘‘(C) the Chief Counsel for the Internal Reve- ployee is attributable, subsection (a)(1) of such pointments; nue Service; section shall be applied by substituting ‘to equal ‘‘(iii) such individual’s performance under ‘‘(2) shall maintain individual accountability or exceed the annual rate of compensation for each term appointment referred to in clause (ii) by— the Vice President for such calendar year’ for met all applicable retention standards; and ‘‘(A) establishing standards of performance ‘to exceed the annual rate of basic pay payable ‘‘(iv) such individual meets the minimum qual- which— for level I of the Executive Schedule, as of the ification requirements for the position sought. ‘‘(i) shall permit the accurate evaluation of end of such calendar year’. ‘‘(b) RATING SYSTEMS.— each employee’s performance on the basis of the ‘‘(F) APPROVAL REQUIRED.—An award under ‘‘(1) IN GENERAL.—Notwithstanding sub- individual and organizational performance re- this paragraph may not be made unless— chapter I of chapter 33, the Commissioner of In- quirements applicable with respect to the eval- ‘‘(i) the Commissioner of Internal Revenue ternal Revenue may establish category rating uation period involved, taking into account in- certifies to the Office of Personnel Management systems for evaluating job applicants for posi- dividual contributions toward the attainment of that such award is warranted; and tions in the competitive service, under which any goals or objectives under paragraph (3); ‘‘(ii) the Office approves, or does not dis- qualified candidates are divided into 2 or more ‘‘(ii) shall be communicated to an employee approve, the proposed award within 60 days quality categories on the basis of relative de- before the start of any period with respect to after the date on which it is so certified. grees of merit, rather than assigned individual which the performance of such employee is to be ‘‘(3) BASED ON SAVINGS.— numerical ratings. Each applicant who meets evaluated using such standards; and ‘‘(A) IN GENERAL.—The Commissioner of Inter- the minimum qualification requirements for the ‘‘(iii) shall include at least 2 standards of per- nal Revenue may authorize the payment of cash position to be filled shall be assigned to an ap- formance, the lowest of which shall denote the awards to employees based on documented fi- propriate category based on an evaluation of retention standard and shall be equivalent to nancial savings achieved by a group or organi- the applicant’s knowledge, skills, and abilities fully successful performance; zation which such employees comprise, if such relative to those needed for successful perform- ‘‘(B) providing for periodic performance eval- payments are made pursuant to a plan which— ance in the job to be filled. uations to determine whether employees are ‘‘(i) specifies minimum levels of service and ‘‘(2) TREATMENT OF PREFERENCE ELIGIBLES.— meeting all applicable retention standards; and quality to be maintained while achieving such Within each quality category established under ‘‘(C) using the results of such employee’s per- financial savings; and paragraph (1), preference eligibles shall be listed formance evaluation as a basis for adjustments ‘‘(ii) is in conformance with criteria prescribed ahead of individuals who are not preference eli- in pay and other appropriate personnel actions; by the Office of Personnel Management. gibles. For other than scientific and professional and ‘‘(B) FUNDING.—A cash award under this positions at or higher than GS–9 (or equivalent), ‘‘(3) shall provide for (A) establishing goals or paragraph may be paid from the fund or appro- preference eligibles who have a compensable objectives for individual, group, or organiza- priation available to the activity primarily bene- service-connected disability of 10 percent or tional performance (or any combination there- fiting or the various activities benefiting. more, and who meet the minimum qualification of), consistent with Internal Revenue Service ‘‘(C) TAX ENFORCEMENT RESULTS.—A cash standards, shall be listed in the highest quality performance planning procedures, including award under this paragraph may not be based category. those established under the Government Per- solely on tax enforcement results. ‘‘(3) SELECTION PROCESS.—An appointing au- formance and Results Act of 1993, the Informa- ‘‘(c) OTHER PROVISIONS.— thority may select any applicant from the high- tion Technology Management Reform Act of ‘‘(1) NOTICE PROVISIONS.—In applying sections est quality category or, if fewer than 3 can- 1996, Revenue Procedure 64–22 (as in effect on 4303(b)(1)(A) and 7513(b)(1) to employees of the didates have been assigned to the highest qual- July 30, 1997), and taxpayer service surveys, (B) Internal Revenue Service, ‘15 days’ shall be sub- ity category, from a merged category consisting communicating such goals or objectives to em- stituted for ‘30 days’. of the highest and second highest quality cat- ployees, and (C) using such goals or objectives ‘‘(2) APPEALS.—Notwithstanding the second egories. Notwithstanding the preceding sen- to make performance distinctions among em- sentence of section 5335(c), an employee of the tence, the appointing authority may not pass ployees or groups of employees. Internal Revenue Service shall not have a right over a preference eligible in the same or a higher For purposes of this title, performance of an em- to appeal the denial of a periodic step increase category from which selection is made, unless ployee during any period in which such em- under section 5335 to the Merit Systems Protec- the requirements of section 3317(b) or 3318(b), as ployee is subject to standards of performance tion Board. applicable, are satisfied, except that in no event under paragraph (2) shall be considered to be ‘‘§ 9303. Staffing flexibilities may certification of a preference eligible under ‘unacceptable’ if the performance of such em- ‘‘(a) ELIGIBILITY TO COMPETE FOR A PERMA- this subsection be discontinued by the Internal ployee during such period fails to meet any re- NENT APPOINTMENT IN THE COMPETITIVE SERV- Revenue Service under section 3317(b) before the tention standard. ICE.— end of the 6-month period beginning on the date ‘‘(b) AWARDS.— ‘‘(1) ELIGIBILITY OF QUALIFIED VETERANS.— of such employee’s first certification. ‘‘(1) FOR SUPERIOR ACCOMPLISHMENTS.—In the ‘‘(A) IN GENERAL.—No veteran described in ‘‘(c) INVOLUNTARY REASSIGNMENTS AND RE- case of a proposed award based on the efforts of subparagraph (B) shall be denied the oppor- MOVALS OF CAREER APPOINTEES IN THE SENIOR an employee or former employee of the Internal tunity to compete for an announced vacant EXECUTIVE SERVICE.—Neither section 3395(e)(1) Revenue Service, any approval required under competitive service position within the Internal nor section 3592(b)(1) shall apply with respect to the provisions of section 4502(b) shall be consid- Revenue Service by reason of— the Internal Revenue Service. ered to have been granted if the Office of Per- ‘‘(i) not having acquired competitive status; or ‘‘(d) PROBATIONARY PERIODS.—Notwithstand- sonnel Management does not disapprove the ‘‘(ii) not being an employee of that agency. ing any other provision of law or regulation, the proposed award within 60 days after receiving ‘‘(B) DESCRIPTION.—An individual shall, for Commissioner of Internal Revenue may establish the appropriate certification described in such purposes of a position for which such individual a period of probation under section 3321 of up to provisions. is applying, be considered a veteran described in 3 years for any position if, as determined by the ‘‘(2) FOR EMPLOYEES WHO REPORT DIRECTLY this subparagraph if such individual— Commissioner, a shorter period would be insuffi- TO THE COMMISSIONER.— ‘‘(i) is either a preference eligible, or an indi- cient for the incumbent to demonstrate complete ‘‘(A) IN GENERAL.—In the case of an employee vidual (other than a preference eligible) who proficiency in such position. of the Internal Revenue Service who reports di- has been separated from the armed forces under ‘‘(e) PROVISIONS THAT REMAIN APPLICABLE.— rectly to the Commissioner of Internal Revenue, honorable conditions after at least 3 years of ac- No provision of this section exempts the Internal a cash award in an amount up to 50 percent of tive service; and Revenue Service from— H10010 CONGRESSIONAL RECORD — HOUSE November 5, 1997

‘‘(1) any employment priorities established ‘‘(g) CONSULTATION AND COORDINATION.—The appropriate incentives for electronically filed re- under direction of the President for the place- Commissioner of Internal Revenue shall consult turns.’’ ment of surplus or displaced employees; or with the Director of the Office of Personnel (d) ANNUAL REPORTS.—Not later than June 30 ‘‘(2) its obligations under any court order or Management in the development and implemen- of each calendar year after 1997, the Chair- decree relating to the employment practices of tation of each demonstration project under this person of the Internal Revenue Service Over- the Internal Revenue Service. section and shall submit such reports to the Di- sight Board, the Secretary, and the Chairperson ‘‘§ 9304. Flexibilities relating to demonstration rector as the Director may require. The Director of the electronic commerce advisory group estab- projects or the Commissioner of Internal Revenue may lished under subsection (b)(2) shall report to the terminate a demonstration project under this Committees on Ways and Means, Appropria- ‘‘(a) AUTHORITY TO CONDUCT.—The Commis- section if either of them determines that the tions, and Government Reform and Oversight of sioner of Internal Revenue may, in accordance project creates a substantial hardship on, or is the House of Representatives, the Committees on with this section, conduct 1 or more demonstra- not in the best interests of, the public, the Fed- Finance, Appropriations, and Government Af- tion projects to improve personnel management; eral Government, employees, or qualified appli- fairs of the Senate, and the Joint Committee on provide increased individual accountability; cants for employment with the Internal Revenue Taxation, on— eliminate obstacles to the removal of or imposing Service. (1) the progress of the Internal Revenue Serv- any disciplinary action with respect to poor per- ‘‘(h) TERMINATION.—Each demonstration ice in meeting the goal of receiving electroni- formers, subject to the requirements of due proc- project under this section shall terminate before cally 80 percent of tax and information returns ess; expedite appeals from adverse actions or the end of the 5-year period beginning on the by 2007; performance-based actions; and promote pay date on which the project takes effect, except (2) the status of the plan required by sub- based on performance. that any such project may continue beyond the section (b); and ‘‘(b) GENERAL REQUIREMENTS.—Except as pro- end of such period, for not to exceed 2 years, if (3) the legislative changes necessary to assist vided in subsection (c), each demonstration the Commissioner of Internal Revenue, with the the Internal Revenue Service in meeting such project under this section shall comply with the concurrence of the Director, determines such ex- goal. provisions of section 4703. tension is necessary to validate the results of the SEC. 202. DUE DATE FOR CERTAIN INFORMATION ‘‘(c) SPECIAL RULES.—For purposes of any project. Not later than 6 months before the end RETURNS FILED ELECTRONICALLY. demonstration project under this section— of the 5-year period and any extension under (a) IN GENERAL.—Section 6071 (relating to ‘‘(1) AUTHORITY OF COMMISSIONER.—The Com- the preceding sentence, the Commissioner of In- time for filing returns and other documents) is missioner of Internal Revenue shall exercise the ternal Revenue shall, with respect to the dem- amended by redesignating subsection (b) as sub- authority provided to the Office of Personnel onstration project involved, submit a legislative section (c) and by inserting after subsection (a) Management under section 4703. proposal to the Congress if the Commissioner de- the following new subsection: ‘‘(2) PROVISIONS NOT APPLICABLE.—The fol- termines that such project should be made per- ‘‘(b) ELECTRONICALLY FILED INFORMATION RE- lowing provisions of section 4703 shall not manent, in whole or in part.’’ TURNS.—Returns made under subparts B and C apply: (b) CLERICAL AMENDMENT.—The analysis for of part III of this subchapter which are filed ‘‘(A) Paragraphs (3) through (6) of subsection part III of title 5, United States Code, is amend- electronically shall be filed on or before March (b). ed by adding at the end the following: 31 of the year following the calendar year to ‘‘(B) Paragraphs (1), (2)(B)(ii), and (4) of sub- which such returns relate.’’ ‘‘Subpart I—Miscellaneous section (c). (b) EFFECTIVE DATE.—The amendment made ‘‘(C) Subsections (d) through (g). ‘‘93. Personnel Flexibilities Relating by this section shall apply to returns required to ‘‘(d) NOTIFICATION REQUIRED TO BE GIVEN.— to the Internal Revenue be filed after December 31, 1999. ‘‘(1) TO EMPLOYEES.—The Commissioner of In- Service ...... 9301’’. SEC. 203. PAPERLESS ELECTRONIC FILING. ternal Revenue shall notify employees likely to (c) EFFECTIVE DATE.—This section shall take (a) IN GENERAL.—Section 6061 (relating to be affected by a project proposed under this sec- effect on the date of enactment of this Act. signing of returns and other documents) is tion at least 90 days in advance of the date such TITLE II—ELECTRONIC FILING amended— project is to take effect. SEC. 201. ELECTRONIC FILING OF TAX AND IN- (1) by striking ‘‘Except as otherwise provided ‘‘(2) TO CONGRESS AND OPM.—The Commis- FORMATION RETURNS. by’’ and inserting the following: sioner of Internal Revenue shall, with respect to (a) IN GENERAL.—It is the policy of the Con- ‘‘(a) GENERAL RULE.—Except as otherwise each demonstration project under this section, gress that paperless filing should be the pre- provided by subsection (b) and’’, and provide each House of Congress and the Office ferred and most convenient means of filing tax (2) by adding at the end the following new of Personnel Management with a report, at least and information returns, and that by the year subsection: 30 days in advance of the date such project is to 2007, no more than 20 percent of all such returns ‘‘(b) ELECTRONIC SIGNATURES.— take effect, setting forth the final version of the should be filed on paper. ‘‘(1) IN GENERAL.—The Secretary shall develop plan for such project. Such report shall, with re- (b) STRATEGIC PLAN.— procedures for the acceptance of signatures in spect to the project to which it relates, include (1) IN GENERAL.—Not later than 180 days after digital or other electronic form. Until such time the information specified in section 4703(b)(1). the date of the enactment of this Act, the Sec- as such procedures are in place, the Secretary ‘‘(e) LIMITATIONS.—No demonstration project retary of the Treasury or the Secretary’s dele- may waive the requirement of a signature for all under this section may— gate (hereafter in this section referred to as the returns or classes of returns, or may provide for ‘‘(1) provide for a waiver of any regulation ‘‘Secretary’’) shall establish a plan to eliminate alternative methods of subscribing all returns, prescribed under any provision of law referred barriers, provide incentives, and use competitive declarations, statements, or other documents re- to in paragraph (2)(B)(i) or (3) of section market forces to increase electronic filing gradu- quired or permitted to be made or written under 4703(c); ally over the next 10 years while maintaining internal revenue laws and regulations. ‘‘(2) provide for a waiver of subchapter V of processing times for paper returns at 40 days. To ‘‘(2) TREATMENT OF ALTERNATIVE METHODS.— chapter 63 or subpart G of part III (or any regu- the extent practicable, such plan shall provide Notwithstanding any other provision of law, lations prescribed under such subchapter or sub- that all returns prepared electronically for tax- any return, declaration, statement or other doc- part); able years beginning after 2001 shall be filed ument filed without signature under the author- ‘‘(3) provide for a waiver of any law or regu- electronically. ity of this subsection or verified, signed or sub- lation relating to preference eligibles as defined (2) ELECTRONIC COMMERCE ADVISORY GROUP.— scribed under any method adopted under para- in section 2108 or subchapter II or III of chapter To ensure that the Secretary receives input from graph (1) shall be treated for all purposes (both 73 (or any regulations prescribed thereunder); the private sector in the development and imple- civil and criminal, including penalties for per- ‘‘(4) permit collective bargaining over pay or mentation of the plan required by paragraph jury) in the same manner as though signed and benefits, or require collective bargaining over (1), the Secretary shall convene an electronic subscribed. Any such return, declaration, state- any matter which would not be required under commerce advisory group to include representa- ment or other document shall be presumed to section 7106; or tives from the small business community and have been actually submitted and subscribed by ‘‘(5) include a system for measuring perform- from the tax practitioner, preparer, and comput- the person on whose behalf it was submitted. ance that provides for only 1 level of perform- erized tax processor communities and other rep- ‘‘(3) PUBLISHED GUIDANCE.—The Secretary ance at or above the level of fully successful or resentatives from the electronic filing industry. shall publish guidance as appropriate to define better. (c) PROMOTION OF ELECTRONIC FILING AND IN- and implement any waiver of the signature re- ‘‘(f) PERMISSIBLE PROJECTS.—Notwithstand- CENTIVES.—Section 6011 is amended by redesig- quirements.’’ ing any other provision of law, a demonstration nating subsection (f) as subsection (g) and by (b) ACKNOWLEDGMENT OF ELECTRONIC FIL- project under this section— inserting after subsection (e) the following new ING.—Section 7502(c) is amended to read as fol- ‘‘(1) may establish alternative means of resolv- subsection: lows: ing any dispute within the jurisdiction of the ‘‘(f) PROMOTION OF ELECTRONIC FILING.— ‘‘(c) REGISTERED AND CERTIFIED MAILING; Equal Employment Opportunity Commission, ‘‘(1) IN GENERAL.—The Secretary is authorized ELECTRONIC FILING.— the Merit Systems Protection Board, the Federal to promote the benefits of and encourage the use ‘‘(1) REGISTERED MAIL.—For purposes of this Labor Relations Authority, or the Federal Serv- of electronic tax administration programs, as section, if any return, claim, statement, or other ice Impasses Panel; and they become available, through the use of mass document, or payment, is sent by United States ‘‘(2) may permit the Internal Revenue Service communications and other means. registered mail— to adopt any alternative dispute resolution pro- ‘‘(2) INCENTIVES.—The Secretary may imple- ‘‘(A) such registration shall be prima facie evi- cedure that a private entity may lawfully adopt. ment procedures to provide for the payment of dence that the return, claim, statement, or other November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10011 document was delivered to the agency, officer, ‘‘(1) the taxpayer asserts a reasonable dispute States has lost in courts of appeal for other cir- or office to which addressed, and with respect to such issue, cuits on substantially similar issues.’’ ‘‘(B) the date of registration shall be deemed ‘‘(2) the taxpayer has fully cooperated with (e) EFFECTIVE DATE.—The amendments made the postmark date. the Secretary with respect to such issue, includ- by this section shall apply to costs incurred ‘‘(2) CERTIFIED MAIL; ELECTRONIC FILING.— ing providing, within a reasonable period of (and, in the case of the amendment made by The Secretary is authorized to provide by regu- time, access to and inspection of all witnesses, subsection (c), services performed) more than 180 lations the extent to which the provisions of information, and documents within the control days after the date of the enactment of this Act. paragraph (1) with respect to prima facie evi- of the taxpayer, as reasonably requested by the SEC. 312. CIVIL DAMAGES FOR NEGLIGENCE IN dence of delivery and the postmark date shall Secretary, and COLLECTION ACTIONS. apply to certified mail and electronic filing.’’. ‘‘(3) in the case of a partnership, corporation, (a) IN GENERAL.—Section 7433 (relating to (c) ESTABLISHMENT OF PROCEDURES FOR or trust, the taxpayer is described in section civil damages for certain unauthorized collec- OTHER INFORMATION.—In the case of taxable pe- 7430(c)(4)(A)(ii). tion actions) is amended— riods beginning after December 31, 1998, the Sec- ‘‘(c) SUBSTANTIATION.—Nothing in this section (1) in subsection (a), by inserting ‘‘, or by rea- retary of the Treasury or the Secretary’s dele- shall be construed to override any requirement son of negligence,’’ after ‘‘recklessly or inten- gate shall, to the extent practicable, establish of this title to substantiate any item.’’ tionally’’, and procedures to accept, in electronic form, any (b) CONFORMING AMENDMENTS.— (2) in subsection (b)— other information, statements, elections, or (1) Section 6201 is amended by striking sub- (A) in the matter preceding paragraph (1), by schedules, from taxpayers filing returns elec- section (d) and redesignating subsection (e) as inserting ‘‘($100,000, in the case of negligence)’’ tronically, so that such taxpayers will not be re- subsection (d). after ‘‘$1,000,000’’, and quired to file any paper. (2) The table of subchapters for chapter 76 is (B) in paragraph (1), by inserting ‘‘or neg- (d) PROCEDURES FOR COMMUNICATIONS BE- amended by adding at the end the following ligent’’ after ‘‘reckless or intentional’’. TWEEN IRS AND PREPARER OF ELECTRONICALLY new item: (b) REQUIREMENT THAT ADMINISTRATIVE REM- FILED RETURNS.—The Secretary shall establish ‘‘Subchapter E. Burden of proof.’’ EDIES BE EXHAUSTED.—Paragraph (1) of section procedures for taxpayers to authorize, on elec- 7433(d) is amended to read as follows: tronically filed returns, the preparer of such re- (c) EFFECTIVE DATE.—The amendments made ‘‘(1) REQUIREMENT THAT ADMINISTRATIVE REM- turns to communicate with the Internal Revenue by this section shall apply to court proceedings EDIES BE EXHAUSTED.—A judgment for damages Service on matters included on such returns. arising in connection with examinations com- shall not be awarded under subsection (b) un- (e) EFFECTIVE DATE.—The amendments made mencing after the date of the enactment of this less the court determines that the plaintiff has by this section shall take effect on the date of Act. exhausted the administrative remedies available the enactment of this Act. Subtitle B—Proceedings by Taxpayers to such plaintiff within the Internal Revenue SEC. 204. RETURN-FREE TAX SYSTEM. SEC. 311. EXPANSION OF AUTHORITY TO AWARD Service.’’ (a) IN GENERAL.—The Secretary of the Treas- COSTS AND CERTAIN FEES. (c) EFFECTIVE DATE.—The amendments made ury or the Secretary’s delegate shall develop (a) AWARD OF HIGHER ATTORNEY’S FEES by this section shall apply to actions of officers procedures for the implementation of a return- BASED ON COMPLEXITY OF ISSUES.—Clause (iii) or employees of the Internal Revenue Service free tax system under which appropriate indi- of section 7430(c)(1)(B) (relating to the award of after the date of the enactment of this Act. viduals would be permitted to comply with the costs and certain fees) is amended by inserting SEC. 313. INCREASE IN SIZE OF CASES PER- Internal Revenue Code of 1986 without making ‘‘the difficulty of the issues presented in the MITTED ON SMALL CASE CALENDAR. the return required under section 6012 of such case, or the local availability of tax expertise,’’ (a) IN GENERAL.—Subsection (a) of section Code for taxable years beginning after 2007. before ‘‘justifies a higher rate’’. 7463 (relating to disputes involving $10,000 or (b) REPORT.—Not later than June 30 of each (b) AWARD OF ADMINISTRATIVE COSTS IN- less) is amended by striking ‘‘$10,000’’ each calendar year after 1999, such Secretary shall CURRED AFTER 30-DAY LETTER.—Paragraph (2) place it appears and inserting ‘‘$25,000’’. report to the Committee on Ways and Means of of section 7430(c) is amended by striking the last (b) CONFORMING AMENDMENTS.— the House of Representatives, the Committee on sentence and inserting the following: (1) The section heading for section 7463 is Finance of the Senate, and the Joint Committee ‘‘Such term shall only include costs incurred on amended by striking ‘‘$10,000’’ and inserting on Taxation on— or after whichever of the following is the earli- ‘‘$25,000’’. (1) what additional resources the Internal est: (i) the date of the receipt by the taxpayer of (2) The item relating to section 7463 in the Revenue Service would need to implement such the notice of the decision of the Internal Reve- table of sections for part II of subchapter C of a system, nue Service Office of Appeals, (ii) the date of chapter 76 is amended by striking ‘‘$10,000’’ and (2) the changes to the Internal Revenue Code the notice of deficiency, or (iii) the date on inserting ‘‘$25,000’’. (c) EFFECTIVE DATE.—The amendments made of 1986 that could enhance the use of such a which the 1st letter of proposed deficiency by this section shall apply to proceedings com- system, which allows the taxpayer an opportunity for mencing after the date of the enactment of this (3) the procedures developed pursuant to sub- administrative review in the Internal Revenue Act. section (a), and Service Office of Appeals is sent.’’. (4) the number and classes of taxpayers that (c) AWARD OF FEES FOR CERTAIN ADDITIONAL Subtitle C—Relief for Innocent Spouses and would be permitted to use the procedures devel- SERVICES.—Paragraph (3) of section 7430(c) is for Taxpayers Unable To Manage Their Fi- oped pursuant to subsection (a). amended to read as follows: nancial Affairs Due to Disabilities SEC. 205. ACCESS TO ACCOUNT INFORMATION. ‘‘(3) ATTORNEY’S FEES.— SEC. 321. SPOUSE RELIEVED IN WHOLE OR IN Not later than December 31, 2006, the Sec- ‘‘(A) IN GENERAL.—For purposes of para- PART OF LIABILITY IN CERTAIN retary of the Treasury or the Secretary’s dele- graphs (1) and (2), fees for the services of an in- CASES. gate shall develop procedures under which a dividual (whether or not an attorney) who is (a) IN GENERAL.—Subpart B of part II of sub- taxpayer filing returns electronically would be authorized to practice before the Tax Court or chapter A of chapter 61 is amended by inserting able to review the taxpayer’s account electroni- before the Internal Revenue Service shall be after section 6014 the following new section: cally, but only if all necessary safeguards to en- treated as fees for the services of an attorney. ‘‘SEC. 6015. INNOCENT SPOUSE RELIEF; PETITION sure the privacy of such account information ‘‘(B) PRO BONO SERVICES.—In any case in TO TAX COURT. are in place. which the court could have awarded attorney’s ‘‘(a) SPOUSE RELIEVED OF LIABILITY IN CER- TITLE III—TAXPAYER PROTECTION AND fees under subsection (a) but for the fact that TAIN CASES.— RIGHTS an individual is representing the prevailing ‘‘(1) IN GENERAL.—Under procedures pre- party for no fee or for a fee which (taking into scribed by the Secretary, if— SEC. 300. SHORT TITLE. account all the facts and circumstances) is no ‘‘(A) a joint return has been made under sec- This title may be cited as the ‘‘Taxpayer Bill more than a nominal fee, the court may also tion 6013 for a taxable year, of Rights 3’’. award a judgment or settlement for such ‘‘(B) on such return there is an understate- Subtitle A—Burden of Proof amounts as the court determines to be appro- ment of tax attributable to erroneous items of 1 SEC. 301. BURDEN OF PROOF. priate (based on hours worked and costs ex- spouse, (a) IN GENERAL.—Chapter 76 (relating to judi- pended) for services of such individual but only ‘‘(C) the other spouse establishes that in sign- cial proceedings) is amended by adding at the if such award is paid to such individual or such ing the return he or she did not know, and had end the following new subchapter: individual’s employer.’’ no reason to know, that there was such under- (d) DETERMINATION OF WHETHER POSITION OF statement, ‘‘Subchapter E—Burden of Proof UNITED STATES IS SUBSTANTIALLY JUSTIFIED.— ‘‘(D) taking into account all the facts and cir- ‘‘Sec. 7491. Burden of proof. Subparagraph (B) of section 7430(c)(4) is amend- cumstances, it is inequitable to hold the other ‘‘SEC. 7491. BURDEN OF PROOF. ed by redesignating clause (iii) as clause (iv) spouse liable for the deficiency in tax for such ‘‘(a) GENERAL RULE.—The Secretary shall and by inserting after clause (ii) the following taxable year attributable to such understate- have the burden of proof in any court proceed- new clause: ment, and ing with respect to any factual issue relevant to ‘‘(iii) EFFECT OF LOSING ON SUBSTANTIALLY ‘‘(E) the other spouse claims (in such form as ascertaining the income tax liability of a tax- SIMILAR ISSUES.—In determining for purposes of the Secretary may prescribe) the benefits of this payer. clause (i) whether the position of the United subsection not later than the date which is 2 ‘‘(b) LIMITATIONS.—Subsection (a) shall only States was substantially justified, the court years after the date of the assessment of such apply with respect to an issue if— shall take into account whether the United deficiency, H10012 CONGRESSIONAL RECORD — HOUSE November 5, 1997 then the other spouse shall be relieved of liabil- allowed or made to the extent attributable to the Subtitle D—Provisions Relating to Interest ity for tax (including interest, penalties, and application of this section. SEC. 331. ELIMINATION OF INTEREST RATE DIF- other amounts) for such taxable year to the ex- ‘‘(2) RES JUDICATA.—In the case of any claim FERENTIAL ON OVERLAPPING PERI- tent such liability is attributable to such under- under subsection (a), the determination of the ODS OF INTEREST ON INCOME TAX statement. Tax Court in any prior proceeding for the same OVERPAYMENTS AND UNDERPAY- ‘‘(2) APPORTIONMENT OF RELIEF.—If a spouse taxable periods in which the decision has be- MENTS. who, but for paragraph (1)(C), would be relieved come final, shall be conclusive except with re- (a) IN GENERAL.—Section 6621 (relating to de- of liability under paragraph (1), establishes that spect to the qualification of the spouse for relief termination of rate of interest) is amended by in signing the return such spouse did not know, which was not an issue in such proceeding. The adding at the end the following new subsection: and had no reason to know, the extent of such preceding sentence shall not apply if the Tax ‘‘(d) ELIMINATION OF INTEREST ON OVERLAP- understatement, then such spouse shall be re- Court determines that the spouse participated PING PERIODS OF INCOME TAX OVERPAYMENTS lieved of liability for tax (including interest, meaningfully in such prior proceeding. AND UNDERPAYMENTS.—To the extent that, for penalties, and other amounts) for such taxable ‘‘(3) LIMITATION ON TAX COURT JURISDIC- any period, interest is payable under subchapter year to the extent that such liability is attrib- TION.—If a suit for refund is begun by either A and allowable under subchapter B on equiva- utable to the portion of such understatement of spouse pursuant to section 6532, the Tax Court lent underpayments and overpayments by the which such spouse did not know and had no shall lose jurisdiction of the spouse’s action same taxpayer of tax imposed by chapters 1 and reason to know. under this section to whatever extent jurisdic- 2, the net rate of interest under this section on ‘‘(3) UNDERSTATEMENT.—For purposes of this tion is acquired by the district court or the Unit- such amounts shall be zero for such period.’’ subsection, the term ‘understatement’ has the ed States Court of Federal Claims over the tax- (b) CONFORMING AMENDMENT.—Subsection (f) meaning given to such term by section able years that are the subject of the suit for re- of section 6601 (relating to satisfaction by cred- 6662(d)(2)(A). fund.’’ its) is amended by adding at the end the follow- ing new sentence: ‘‘The preceding sentence shall ‘‘(4) SPECIAL RULE FOR COMMUNITY PROPERTY (b) SEPARATE FORM FOR APPLYING FOR not apply to the extent that section 6621(d) ap- INCOME.—For purposes of this subsection, the SPOUSAL RELIEF.—Not later than 180 days after determination of the spouse to whom items of the date of the enactment of this Act, the Sec- plies.’’ (c) EFFECTIVE DATE.—The amendments made gross income (other than gross income from retary of the Treasury shall develop a separate by this section shall apply to interest for cal- property) are attributable shall be made without form with instructions for use by taxpayers in endar quarters beginning after the date of the regard to community property laws. applying for relief under section 6015(a) of the enactment of this Act. ‘‘(b) PETITION FOR REVIEW BY TAX COURT.— Internal Revenue Code of 1986, as added by this In the case of an individual who has filed a section. SEC. 332. INCREASE IN OVERPAYMENT RATE PAY- ABLE TO TAXPAYERS OTHER THAN claim under subsection (a) within the period (c) CONFORMING AMENDMENTS.— (1) Section 6013 is amended by striking sub- CORPORATIONS. specified in subsection (a)(1)(E)— section (e). (a) IN GENERAL.—Subparagraph (B) of section ‘‘(1) IN GENERAL.—Such individual may peti- (2) Subparagraph (A) of section 6230(c)(5) is 6621(a)(1) (defining overpayment rate) is amend- tion the Tax Court (and the Tax Court shall amended by striking ‘‘section 6013(e)’’ and in- ed to read as follows: have jurisdiction) to determine such claim if serting ‘‘section 6015’’. ‘‘(B) 3 percentage points (2 percentage points such petition is filed during the 90-day period (d) CLERICAL AMENDMENT.—The table of sec- in the case of a corporation).’’ beginning on the earlier of— tions for subpart B of part II of subchapter A of (b) EFFECTIVE DATE.—The amendment made ‘‘(A) the date which is 6 months after the date chapter 61 is amended by inserting after the item by this section shall apply to interest for cal- such claim is filed with the Secretary, or relating to section 6014 the following new item: endar quarters beginning after the date of the ‘‘(B) the date on which the Secretary mails by enactment of this Act. certified or registered mail a notice to such indi- ‘‘Sec. 6015. Innocent spouse relief; petition to Tax Court.’’ Subtitle E—Protections for Taxpayers Subject vidual denying such claim. to Audit or Collection Activities Such 90-day period shall be determined by not (e) EFFECTIVE DATE.—The amendments made by this section shall apply to understatements SEC. 341. PRIVILEGE OF CONFIDENTIALITY EX- counting Saturday, Sunday, or a legal holiday TENDED TO TAXPAYER’S DEALINGS in the District of Columbia as the last day of for taxable years beginning after the date of the WITH NON-ATTORNEYS AUTHORIZED such period. enactment of this Act. TO PRACTICE BEFORE INTERNAL ‘‘(2) RESTRICTIONS APPLICABLE TO COLLECTION SEC. 322. SUSPENSION OF STATUTE OF LIMITA- REVENUE SERVICE. OF ASSESSMENT.— TIONS ON FILING REFUND CLAIMS Section 7602 (relating to examination of books DURING PERIODS OF DISABILITY. ‘‘(A) IN GENERAL.—Except as otherwise pro- and witnesses) is amended by adding at the end (a) IN GENERAL.—Section 6511 (relating to lim- vided in section 6851 or 6861, no levy or proceed- the following new subsection: itations on credit or refund) is amended by re- ing in court for collection of any assessment to ‘‘(d) PRIVILEGE OF CONFIDENTIALITY EX- designating subsection (h) as subsection (i) and which such claim relates shall be made, begun, TENDED TO TAXPAYER’S DEALINGS WITH NON-AT- by inserting after subsection (g) the following or prosecuted, until the expiration of the 90-day TORNEYS AUTHORIZED TO PRACTICE BEFORE IN- new subsection: period described in paragraph (1), nor, if a peti- TERNAL REVENUE SERVICE.— ‘‘(h) RUNNING OF PERIODS OF LIMITATION SUS- tion has been filed with the Tax Court, until the ‘‘(1) IN GENERAL.—In any noncriminal pro- PENDED WHILE TAXPAYER IS UNABLE TO MAN- decision of the Tax Court has become final. ceeding before the Internal Revenue Service, the AGE FINANCIAL AFFAIRS DUE TO DISABILITY.— Rules similar to the rules of section 7485 shall taxpayer shall be entitled to the same common ‘‘(1) IN GENERAL.—In the case of an individ- law protections of confidentiality with respect to apply with respect to the collection of such as- ual, the running of the periods specified in sub- sessment. tax advice furnished by any qualified individual sections (a), (b), and (c) shall be suspended dur- (in a manner consistent with State law for such ‘‘(B) AUTHORITY TO ENJOIN COLLECTION AC- ing any period of such individual’s life that TIONS.—Notwithstanding the provisions of sec- individual’s profession) as the taxpayer would such individual is financially disabled. have if such individual were an attorney. tion 7421(a), the beginning of such proceeding or INANCIALLY DISABLED ‘‘(2) F .— ‘‘(2) QUALIFIED INDIVIDUAL.—For purposes of levy during the time the prohibition under sub- ‘‘(A) IN GENERAL.—For purposes of paragraph paragraph (1), the term ‘qualified individual’ paragraph (A) is in force may be enjoined by a (1), an individual is financially disabled if such means any individual (other than an attorney) proceeding in the proper court, including the individual is unable to manage his financial af- who is authorized to practice before the Internal Tax Court. The Tax Court shall have no juris- fairs by reason of his medically determinable Revenue Service.’’ diction under this paragraph to enjoin any ac- physical or mental impairment which can be ex- tion or proceeding unless a timely petition for a pected to result in death or which has lasted or SEC. 342. EXPANSION OF AUTHORITY TO ISSUE determination of such claim has been filed and TAXPAYER ASSISTANCE ORDERS. can be expected to last for a continuous period Section 7811(a) (relating to taxpayer assist- then only in respect of the amount of the assess- of not less than 12 months. An individual shall ment to which such claim relates. ance orders) is amended— not be considered to have such an impairment (1) by striking ‘‘Upon application’’ and insert- ‘‘(C) JEOPARDY COLLECTION.—If the Secretary unless proof of the existence thereof is furnished ing the following: makes a finding that the collection of the tax is in such form and manner as the Secretary may ‘‘(1) IN GENERAL.—Upon application’’, in jeopardy, nothing in this subsection shall require. (2) by moving the text 2 ems to the right, and prevent the immediate collection of such tax. ‘‘(B) EXCEPTION WHERE INDIVIDUAL HAS (3) by adding at the end the following new ‘‘(c) SUSPENSION OF RUNNING OF PERIOD OF GUARDIAN, ETC.—An individual shall not be paragraphs: LIMITATIONS.—The running of the period of lim- treated as financially disabled during any pe- ‘‘(2) ISSUANCE OF TAXPAYER ASSISTANCE OR- itations in section 6502 on the collection of the riod that such individual’s spouse or any other DERS.—For purposes of determining whether to assessment to which the petition under sub- person is authorized to act on behalf of such in- issue a taxpayer assistance order, the Taxpayer section (b) relates shall be suspended for the pe- dividual in financial matters.’’ Advocate shall consider the following factors, riod during which the Secretary is prohibited by (b) EFFECTIVE DATE.—The amendment made among others: subsection (b) from collecting by levy or a pro- by subsection (a) shall apply to periods of dis- ‘‘(A) Whether there is an immediate threat of ceeding in court and for 60 days thereafter. ability before, on, or after the date of the enact- adverse action. ‘‘(d) APPLICABLE RULES.— ment of this Act but shall not apply to any ‘‘(B) Whether there has been an unreasonable ‘‘(1) ALLOWANCE OF APPLICATION.—Except as claim for credit or refund which (without regard delay in resolving taxpayer account problems. provided in paragraph (2), notwithstanding any to such amendment) is barred by the operation ‘‘(C) Whether the taxpayer will have to pay other law or rule of law (other than section of any law or rule of law (including res judi- significant costs (including fees for professional 6512(b), 7121, or 7122), credit or refund shall be cata) as of January 1, 1998. representation) if relief is not granted. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10013

‘‘(D) Whether the taxpayer will suffer irrep- ‘‘(6) PROTECTION OF TRADE SECRETS AND each notice of deficiency under section 6212 of arable injury, or a long-term adverse impact, if OTHER CONFIDENTIAL INFORMATION.—In any the Internal Revenue Code of 1986 the date de- relief is not granted. court proceeding to enforce a summons for any termined by such Secretary (or delegate) as the ‘‘(3) STANDARD WHERE ADMINISTRATIVE GUID- portion of a tax-related computer source code, last day on which the taxpayer may file a peti- ANCE NOT FOLLOWED.—In cases where any In- the court may issue any order necessary to pre- tion with the Tax Court. ternal Revenue Service employee is not follow- vent the disclosure of trade secrets or other con- (b) LATER FILING DEADLINES SPECIFIED ON ing applicable published administrative guid- fidential information with respect to such source NOTICE OF DEFICIENCY TO BE BINDING.—Sub- ance (including the Internal Revenue Manual), code, including providing that any information section (a) of section 6213 (relating to restric- the Taxpayer Advocate shall construe the fac- be placed under seal to be opened only as di- tions applicable to deficiencies; petition to Tax tors taken into account in determining whether rected by the court.’’ Court) is amended by adding at the end the fol- to issue a taxpayer assistance order in the man- (b) APPLICATION OF SPECIAL PROCEDURES FOR lowing new sentence: ‘‘Any petition filed with ner most favorable to the taxpayer.’’ THIRD-PARTY SUMMONSES.—Paragraph (3) of the Tax Court on or before the last date speci- SEC. 343. LIMITATION ON FINANCIAL STATUS section 7609(a) (defining third-party record- fied for filing such petition by the Secretary in AUDIT TECHNIQUES. keeper) is amended by striking ‘‘and’’ at the end the notice of deficiency shall be treated as time- Section 7602 is amended by adding at the end of subparagraph (H), by striking a period at the ly filed.’’ the following new subsection: end of subparagraph (I) and inserting ‘‘, and’’, (c) EFFECTIVE DATE.—Subsection (a) and the ‘‘(e) LIMITATION ON EXAMINATION ON UNRE- and by adding at the end the following: amendment made by subsection (b) shall apply PORTED INCOME.—The Secretary shall not use ‘‘(J) any owner or developer of a tax-related to notices mailed after December 31, 1998. financial status or economic reality examination computer source code (as defined in section SEC. 348. REFUND OR CREDIT OF OVERPAYMENTS techniques to determine the existence of unre- 7602(f)(4)). BEFORE FINAL DETERMINATION. ported income of any taxpayer unless the Sec- Subparagraph (J) shall apply only with respect (a) TAX COURT PROCEEDINGS.—Subsection (a) retary has a reasonable indication that there is to a summons requiring the production of the of section 6213 is amended— a likelihood of such unreported income.’’ source code referred to in subparagraph (J) or (1) by striking ‘‘, including the Tax Court.’’ SEC. 344. LIMITATION ON AUTHORITY TO RE- the program and data described in section and inserting ‘‘, including the Tax Court, and a QUIRE PRODUCTION OF COMPUTER 7602(f)(2)(A)(ii) to which such source code re- refund may be ordered by such court of any SOURCE CODE. lates.’’ amount collected within the period during (a) IN GENERAL.—Section 7602 is amended by (c) EFFECTIVE DATE.—The amendments made which the Secretary is prohibited from collecting adding at the end the following new subsection: by this section shall apply to summonses issued by levy or through a proceeding in court under ‘‘(f) LIMITATION ON AUTHORITY TO REQUIRE more than 90 days after the date of the enact- the provisions of this subsection.’’, and PRODUCTION OF COMPUTER SOURCE CODE.— ment of this Act. (2) by striking ‘‘to enjoin any action or pro- ‘‘(1) IN GENERAL.—No summons may be issued SEC. 345. PROCEDURES RELATING TO EXTEN- ceeding’’ and inserting ‘‘to enjoin any action or under this title, and the Secretary may not SIONS OF STATUTE OF LIMITATIONS proceeding or order any refund’’. begin any action under section 7604 to enforce BY AGREEMENT. (b) OTHER PROCEEDINGS.—Subsection (a) of any summons, to produce or examine any tax- (a) IN GENERAL.—Paragraph (4) of section section 6512 is amended by striking the period at related computer source code. 6501(c) (relating to the period for limitations on the end of paragraph (4) and inserting ‘‘, and’’, ‘‘(2) EXCEPTION WHERE INFORMATION NOT OTH- assessment and collection) is amended— and by inserting after paragraph (4) the follow- ERWISE AVAILABLE TO VERIFY CORRECTNESS OF (1) by striking ‘‘Where’’ and inserting the fol- ing new paragraphs: ITEM ON RETURN.—Paragraph (1) shall not lowing: ‘‘(5) As to any amount collected within the pe- apply to any portion of a tax-related computer ‘‘(A) IN GENERAL.—Where’’, riod during which the Secretary is prohibited source code if— (2) by moving the text 2 ems to the right, and from making the assessment or from collecting ‘‘(A) the Secretary is unable to otherwise rea- (3) by adding at the end the following new by levy or through a proceeding in court under sonably ascertain the correctness of any item on subparagraph: the provisions of section 6213(a), and a return from— ‘‘(B) NOTICE TO TAXPAYER OF RIGHT TO ‘‘(6) As to overpayments the Secretary is au- ‘‘(i) the taxpayer’s books, papers, records, or REFUSE OR LIMIT EXTENSION.—The Secretary thorized to refund or credit pending appeal as other data, or shall notify the taxpayer of the taxpayer’s right provided in subsection (b).’’ ‘‘(ii) the computer software program and the to refuse to extend the period of limitations, or (c) REFUND OR CREDIT PENDING APPEAL.— associated data which, when executed, produces to limit such extension to particular issues, on Paragraph (1) of section 6512(b) is amended by the output to prepare the return for the period each occasion when the taxpayer is requested to adding at the end the following new sentence: involved, and provide such consent.’’ ‘‘If a notice of appeal in respect of the decision ‘‘(B) the Secretary identifies with reasonable (b) EFFECTIVE DATE.—The amendments made of the Tax Court is filed under section 7483, the specificity such portion as to be used to verify by this section shall apply to requests to extend Secretary is authorized to refund or credit the the correctness of such item. the period of limitations made after the date of overpayment determined by the Tax Court to the The Secretary shall be treated as meeting the re- the enactment of this Act. extent the overpayment is not contested on ap- quirements of subparagraphs (A) and (B) after SEC. 346. OFFERS-IN-COMPROMISE. peal.’’ (d) EFFECTIVE DATE.—The amendments made the 90th day after the Secretary makes a formal (a) ALLOWANCES FOR BASIC LIVING EX- by this section shall take effect on the date of request to the taxpayer and the owner or devel- PENSES.—Section 7122 (relating to offers-in-com- the enactment of this Act. oper of the computer software program for the promise) is amended by adding at the end the material described in subparagraph (A)(ii) if following new subsection: SEC. 349. THREAT OF AUDIT PROHIBITED TO CO- ERCE TIP REPORTING ALTERNATIVE such material is not provided before the close of ‘‘(c) ALLOWANCES FOR BASIC LIVING EX- COMMITMENT AGREEMENTS. such 90th day. PENSES.—The Secretary shall develop and pub- The Secretary of the Treasury or the Sec- ‘‘(3) OTHER EXCEPTIONS.—Paragraph (1) shall lish schedules of national and local allowances retary’s delegate shall instruct employees of the not apply to— designed to provide that taxpayers entering into Internal Revenue Service that they may not ‘‘(A) any inquiry into any offense connected a compromise have an adequate means to pro- threaten to audit any taxpayer in an attempt to with the administration or enforcement of the vide for basic living expenses.’’ coerce the taxpayer into entering into a Tip Re- internal revenue laws, and (b) PREPARATION OF STATEMENT RELATING TO porting Alternative Commitment Agreement. ‘‘(B) any tax-related computer source code de- OFFERS-IN-COMPROMISE.—The Secretary of the veloped by (or primarily for the benefit of) the Treasury shall prepare a statement which sets Subtitle F—Disclosures to Taxpayers taxpayer or a related person (within the mean- forth in simple, nontechnical terms the rights of SEC. 351. EXPLANATION OF JOINT AND SEVERAL ing of section 267 or 707(b)) for internal use by a taxpayer and the obligations of the Internal LIABILITY. the taxpayer or such person and not for com- Revenue Service relating to offers-in-com- The Secretary of the Treasury or the Sec- mercial distribution. promise. Such statement shall— retary’s delegate shall, as soon as practicable, ‘‘(4) TAX-RELATED COMPUTER SOURCE CODE.— (1) advise taxpayers who have entered into a but not later than 180 days after the date of the For purposes of this subsection, the term ‘tax-re- compromise agreement of the advantages of enactment of this Act, establish procedures to lated computer source code’ means— promptly notifying the Internal Revenue Service clearly alert married taxpayers of their joint ‘‘(A) the computer source code for any com- of any change of address or marital status, and and several liabilities on all appropriate publi- puter software program for accounting, tax re- (2) provide notice to taxpayers that in the case cations and instructions. turn preparation or compliance, or tax plan- of a compromise agreement terminated due to SEC. 352. EXPLANATION OF TAXPAYERS’ RIGHTS ning, or the actions of 1 spouse or former spouse, the In- IN INTERVIEWS WITH THE INTERNAL ‘‘(B) design and development materials related ternal Revenue Service will, upon application, REVENUE SERVICE. to such a software program (including program reinstate such agreement with the spouse or The Secretary of the Treasury or the Sec- notes and memoranda). former spouse who remains in compliance with retary’s delegate shall, as soon as practicable, ‘‘(5) RIGHT TO CONTEST SUMMONS.—The deter- such agreement. but not later than 180 days after the date of the mination of whether the requirements of sub- SEC. 347. NOTICE OF DEFICIENCY TO SPECIFY enactment of this Act, revise the statement re- paragraphs (A) and (B) of paragraph (2) are DEADLINES FOR FILING TAX COURT quired by section 6227 of the Omnibus Taxpayer met or whether any exception under paragraph PETITION. Bill of Rights (Internal Revenue Service Publi- (3) applies may be contested in any proceeding (a) IN GENERAL.—The Secretary of the Treas- cation No. 1) to more clearly inform taxpayers of under section 7604. ury or the Secretary’s delegate shall include on their rights— H10014 CONGRESSIONAL RECORD — HOUSE November 5, 1997 (1) to be represented at interviews with the In- taxpayers in controversies arising under this ‘‘(A) an election under section 6166 is in effect ternal Revenue Service by any person author- title, and with respect to such estate, ized to practice before the Internal Revenue ‘‘(B) an organization described in section ‘‘(B) no portion of the installments payable Service, and 501(c) and exempt from tax under section 501(a) under such section have been accelerated, and (2) to suspend an interview pursuant to sec- which satisfies the requirements of paragraph ‘‘(C) all installments the due date for which is tion 7521(b)(2) of the Internal Revenue Code of (1) through representation of taxpayers or refer- on or before the date the action is filed have 1986. ral of taxpayers to qualified representatives. been paid. SEC. 353. DISCLOSURE OF CRITERIA FOR EXAM- ‘‘(3) QUALIFIED REPRESENTATIVE.—The term ‘‘(3) PROHIBITION ON COLLECTION OF DIS- INATION SELECTION. ‘qualified representative’ means any individual ALLOWED LIABILITY.—If the court redetermines (a) IN GENERAL.—The Secretary of the Treas- (whether or not an attorney) who is authorized under paragraph (1) the estate tax liability of ury or the Secretary’s delegate shall, as soon as to practice before the Internal Revenue Service an estate, no part of such liability which is dis- practicable, but not later than 180 days after the or the applicable court. allowed by a decision of such court which has date of the enactment of this Act, incorporate ‘‘(c) SPECIAL RULES AND LIMITATIONS.— become final may be collected by the Secretary, ‘‘(1) AGGREGATE LIMITATION.—Unless other- into the statement required by section 6227 of and amounts paid in excess of the installments wise provided by specific appropriation, the Sec- the Omnibus Taxpayer Bill of Rights (Internal determined by the court as currently due and retary shall not allocate more than $3,000,000 Revenue Service Publication No. 1) a statement payable shall be refunded.’’ per year (exclusive of costs of administering the which sets forth in simple and nontechnical (b) EXTENSION OF TIME TO FILE REFUND program) to grants under this section. terms the criteria and procedures for selecting SUIT.—Section 7479 (relating to declaratory ‘‘(2) LIMITATION ON ANNUAL GRANTS TO A CLIN- taxpayers for examination. Such statement shall judgments relating to eligibility of estate with not include any information the disclosure of IC.—The aggregate amount of grants which may be made under this section to a clinic for a year respect to installment payments under section which would be detrimental to law enforcement, 6166) is amended by adding at the end the fol- but shall specify the general procedures used by shall not exceed $100,000. ‘‘(3) MULTI-YEAR GRANTS.—Upon application lowing new subsection: the Internal Revenue Service, including whether ‘‘(c) EXTENSION OF TIME TO FILE REFUND taxpayers are selected for examination on the of a qualified low income taxpayer clinic, the Secretary is authorized to award a multi-year SUIT.—The 2-year period in section 6532(a)(1) basis of information available in the media or on for filing suit for refund after disallowance of a the basis of information provided to the Internal grant not to exceed 3 years. ‘‘(4) CRITERIA FOR AWARDS.—In determining claim shall be suspended during the 90-day pe- Revenue Service by informants. whether to make a grant under this section, the riod after the mailing of the notice referred to in (b) TRANSMISSION TO COMMITTEES OF CON- Secretary shall consider— subsection (b)(3) and, if a pleading has been GRESS.—The Secretary shall transmit drafts of ‘‘(A) the numbers of taxpayers who will be filed with the Tax Court under this section, the statement required under subsection (a) (or served by the clinic, including the number of until the decision of the Tax Court has become proposed revisions to any such statement) to the taxpayers in the geographical area for whom final.’’ Committee on Ways and Means of the House of English is a second language, (c) EFFECTIVE DATE.—The amendments made Representatives, the Committee on Finance of ‘‘(B) the existence of other low income tax- by this section shall apply to any claim for re- the Senate, and the Joint Committee on Tax- payer clinics serving the same population, fund filed after the date of the enactment of this ation on the same day. ‘‘(C) the quality of the program offered by the Act. SEC. 354. EXPLANATIONS OF APPEALS AND COL- low income taxpayer clinic, including the quali- SEC. 372. CATALOGING COMPLAINTS. LECTION PROCESS. fications of its administrators and qualified rep- In collecting data for the report required The Secretary of the Treasury or the Sec- resentatives, and its record, if any, in providing under section 1211 of Taxpayer Bill of Rights 2 retary’s delegate shall, as soon as practicable service to low income taxpayers, and (Public Law 104–168), the Secretary of the but not later than 180 days after the date of the ‘‘(D) alternative funding sources available to Treasury or the Secretary’s delegate shall main- enactment of this Act, include with any 1st let- the clinic, including amounts received from tain records of taxpayer complaints of mis- ter of proposed deficiency which allows the tax- other grants and contributions, and the endow- conduct by Internal Revenue Service employees payer an opportunity for administrative review ment and resources of the institution sponsoring on an individual employee basis. in the Internal Revenue Service Office of Ap- the clinic. peals an explanation of the appeals process and ‘‘(5) REQUIREMENT OF MATCHING FUNDS.—A SEC. 373. ARCHIVE OF RECORDS OF INTERNAL the collection process with respect to such pro- low income taxpayer clinic must provide match- REVENUE SERVICE. posed deficiency. ing funds on a dollar for dollar basis for all (a) IN GENERAL.—Subsection (l) of section 6103 Subtitle G—Low Income Taxpayer Clinics grants provided under this section. Matching (relating to confidentiality and disclosure of re- SEC. 361. LOW INCOME TAXPAYER CLINICS. funds may include— turns and return information) is amended by (a) IN GENERAL.—Chapter 77 (relating to mis- ‘‘(A) the salary (including fringe benefits) of adding at the end the following new paragraph: cellaneous provisions) is amended by adding at individuals performing services for the clinic, ‘‘(17) DISCLOSURE TO NATIONAL ARCHIVES AND the end the following new section: and RECORDS ADMINISTRATION.—The Secretary shall, ‘‘(B) the cost of equipment used in the clinic. ‘‘SEC. 7525. LOW INCOME TAXPAYER CLINICS. upon written request from the Archivist of the United States, disclose or authorize the disclo- ‘‘(a) IN GENERAL.—The Secretary may, subject Indirect expenses, including general overhead of to the availability of appropriated funds, make the institution sponsoring the clinic, shall not sure of returns and return information to offi- grants to provide matching funds for the devel- be counted as matching funds.’’ cers and employees of the National Archives and opment, expansion, or continuation of qualified (b) CLERICAL AMENDMENT.—The table of sec- Records Administration for purposes of, and low income taxpayer clinics. tions for chapter 77 is amended by adding at the only to the extent necessary in, the appraisal of ‘‘(b) DEFINITIONS.—For purposes of this sec- end the following new section: records for destruction or retention. No such of- ficer or employee shall, except to the extent au- tion— ‘‘Sec. 7525. Low income taxpayer clinics.’’ ‘‘(1) QUALIFIED LOW INCOME TAXPAYER CLIN- thorized by subsections (f), (i)(7), or (p), disclose (c) EFFECTIVE DATE.—The amendments made IC.— any return or return information disclosed by this section shall take effect on the date of ‘‘(A) IN GENERAL.—The term ‘qualified low in- under the preceding sentence to any person come taxpayer clinic’ means a clinic that— the enactment of this Act. other than to the Secretary, or to another officer ‘‘(i) does not charge more than a nominal fee Subtitle H—Other Matters or employee of the National Archives and for its services (except for reimbursement of ac- SEC. 371. ACTIONS FOR REFUND WITH RESPECT Records Administration whose official duties re- tual costs incurred), and TO CERTAIN ESTATES WHICH HAVE quire such disclosure for purposes of such ap- ‘‘(ii)(I) represents low income taxpayers in ELECTED THE INSTALLMENT METH- praisal.’’ controversies with the Internal Revenue Service, OD OF PAYMENT. (b) CONFORMING AMENDMENTS.—Section or (a) IN GENERAL.—Section 7422 is amended by 6103(p) is amended— ‘‘(II) operates programs to inform individuals redesignating subsection (j) as subsection (k) (1) in paragraph (3)(A), by striking ‘‘or (16)’’ for whom English is a second language about and by inserting after subsection (i) the follow- and inserting ‘‘(16), or (17)’’, their rights and responsibilities under this title. ing new subsection: (2) in paragraph (4), by striking ‘‘or (14)’’ and ‘‘(j) SPECIAL RULE FOR ACTIONS WITH RE- ‘‘(B) REPRESENTATION OF LOW INCOME TAX- inserting ‘‘, (14), or (17)’’ in the matter preced- SPECT TO ESTATES FOR WHICH AN ELECTION PAYERS.—A clinic meets the requirements of sub- ing subparagraph (A), and UNDER SECTION 6166 IS MADE.— paragraph (A)(ii)(I) if— (3) in paragraph (4)(F)(ii), by striking ‘‘or ‘‘(i) at least 90 percent of the taxpayers rep- ‘‘(1) IN GENERAL.—The district courts of the (15)’’ and inserting ‘‘, (15), or (17)’’. resented by the clinic have incomes which do United States and the United States Court of (c) EFFECTIVE DATE.—The amendments made not exceed 250 percent of the poverty level, as Federal Claims shall have jurisdiction over any by this section shall apply to requests made by determined in accordance with criteria estab- action brought by the representative of an estate the Archivist of the United States after the date lished by the Director of the Office of Manage- to which this subsection applies to determine the of the enactment of this Act. ment and Budget, and correct amount of the estate tax liability of such ‘‘(ii) the amount in controversy for any tax- estate (or for any refund with respect thereto) SEC. 374. PAYMENT OF TAXES. able year generally does not exceed the amount even if the full amount of such liability has not The Secretary of the Treasury or the Sec- specified in section 7463. been paid. retary’s delegate shall establish such rules, reg- ‘‘(2) CLINIC.—The term ‘clinic’ includes— ‘‘(2) ESTATES TO WHICH SUBSECTION APPLIES.— ulations, and procedures as are necessary to ‘‘(A) a clinical program at an accredited law This subsection shall apply to any estate if, as allow payment of taxes by check or money order school in which students represent low income of the date the action is filed— made payable to the United States Treasury. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10015

SEC. 375. CLARIFICATION OF AUTHORITY OF SEC- ‘‘(1) IN GENERAL.—The Chief of Staff, and (3) the necessity and utility of year-round au- RETARY RELATING TO THE MAKING such other staff as are appointed pursuant to diting; and OF ELECTIONS. section 8004, shall provide such assistance as is (4) the Commissioner’s plans for improving its Subsection (d) of section 7805 is amended by required for joint hearings described in para- financial management system. striking ‘‘by regulations or forms’’. graph (2). Subtitle C—Tax Law Complexity SEC. 376. LIMITATION ON PENALTY ON INDIVID- ‘‘(2) JOINT HEARINGS.—On or before April 1 of SEC. 421. ROLE OF THE INTERNAL REVENUE UAL’S FAILURE TO PAY FOR MONTHS each calendar year after 1997, there shall be a SERVICE. DURING PERIOD OF INSTALLMENT joint hearing of two members of the majority It is the sense of Congress that the Internal AGREEMENT. and one member of the minority from each of the (a) IN GENERAL.—Section 6651 (relating to Revenue Service should provide the Congress Committees on Finance, Appropriations, and with an independent view of tax administration, failure to file tax return or to pay tax) is amend- Government Affairs of the Senate, and the Com- ed by adding at the end the following new sub- and that during the legislative process, the tax mittees on Ways and Means, Appropriations, writing committees of the Congress should hear section: and Government Reform and Oversight of the ‘‘(h) LIMITATION ON PENALTY ON INDIVIDUAL’S from front-line technical experts at the Internal House of Representatives, to review the strategic Revenue Service with respect to the administra- FAILURE TO PAY FOR MONTHS DURING PERIOD plans and budget for the Internal Revenue Serv- OF INSTALLMENT AGREEMENT.—No addition to bility of pending amendments to the Internal ice. After the conclusion of the annual filing Revenue Code of 1986. the tax shall be imposed under paragraph (2) or season, there shall be a second annual joint SEC. 422. TAX COMPLEXITY ANALYSIS. (3) of subsection (a) with respect to the tax li- hearing to review the other matters outlined in (a) REQUIRING ANALYSIS TO ACCOMPANY CER- ability of an individual for any month during section 8022(3)(C).’’ TAIN LEGISLATION.— which an installment agreement under section (b) EFFECTIVE DATES.— (1) IN GENERAL.—Chapter 92 (relating to pow- 6159 is in effect for the payment of such tax to (1) Subsection (e) of section 8021 of the Inter- ers and duties of the Joint Committee on Tax- the extent that imposing an addition to the tax nal Revenue Code of 1986, as added by sub- ation) is amended by adding at the end the fol- under such paragraph for such month would re- section (a) of this section, shall apply to re- lowing new section: sult in the aggregate number of percentage quests made after the date of enactment of this points of such addition to the tax exceeding Act. ‘‘SEC. 8024. TAX COMPLEXITY ANALYSIS. 9.5.’’ (2) Subsection (f) of section 8021 of the Inter- ‘‘(a) IN GENERAL.—If— (b) EFFECTIVE DATE.—The amendment made nal Revenue Code of 1986, as added by sub- ‘‘(1) a bill or joint resolution is reported by the by this section shall apply for purposes of deter- section (a) of this section, shall take effect on Committee on Finance of the Senate, the Com- mining additions to the tax for months begin- the date of the enactment of this Act. mittee on Ways and Means of the House of Rep- ning after the date of the enactment of this Act. resentatives, or any committee of conference, SEC. 402. COORDINATED OVERSIGHT REPORTS. and Subtitle I—Studies (a) IN GENERAL.—Paragraph (3) of section ‘‘(2) such legislation includes any provision 8022 (relating to the duties of the Joint Commit- SEC. 381. PENALTY ADMINISTRATION. amending the Internal Revenue Code of 1986, The Joint Committee on Taxation shall con- tee on Taxation) is amended to read as follows: duct a study— ‘‘(3) REPORTS.— the report for such legislation shall contain a (1) reviewing the administration and imple- ‘‘(A) To report, from time to time, to the Com- Tax Complexity Analysis unless the committee mentation by the Internal Revenue Service of mittee on Finance and the Committee on Ways involved causes to have the Tax Complexity the penalty reform provisions of the Omnibus and Means, and, in its discretion, to the Senate Analysis printed in the Congressional Record Budget Reconciliation Act of 1989, and or House of Representatives, or both, the results prior to the consideration of the legislation in (2) making any legislative and administrative of its investigations, together with such rec- the House of Representatives or the Senate (as recommendations it deems appropriate to sim- ommendations as it may deem advisable. the case may be). ‘‘(b) LEGISLATION SUBJECT TO POINT OF plify penalty administration and reduce tax- ‘‘(B) To report, annually, to the Committee on ORDER.—It shall not be in order in the Senate to payer burden. Finance and the Committee on Ways and Means on the overall state of the Federal tax system, consider any bill or joint resolution described in Such study shall be submitted to the Committee together with recommendations with respect to subsection (a) required to be accompanied by a on Ways and Means of the House of Represent- possible simplification proposals and other mat- Tax Complexity Analysis that does not contain atives and the Committee on Finance of the Sen- ters relating to the administration of the Federal a Tax Complexity Analysis. ate not later than 9 months after the date of en- tax system as it may deem advisable. ‘‘(c) RESPONSIBILITIES OF THE COMMIS- actment of this Act. ‘‘(C) To report, annually, to the Committees SIONER.—The Commissioner shall provide the SEC. 382. CONFIDENTIALITY OF TAX RETURN IN- on Finance, Appropriations, and Government Joint Committee on Taxation with such informa- FORMATION. Affairs of the Senate, and to the Committees on tion as is necessary to prepare Tax Complexity The Joint Committee on Taxation shall con- Ways and Means, Appropriations, and Govern- Analyses. duct a study of the scope and use of provisions ment Reform and Oversight of the House of Rep- ‘‘(d) TAX COMPLEXITY ANALYSIS DEFINED.— regarding taxpayer confidentiality, and shall re- resentatives, with respect to— For purposes of this section, the term ‘Tax Com- port the findings of such study, together with ‘‘(i) strategic and business plans for the Inter- plexity Analysis’ means, with respect to a bill or such recommendations as it deems appropriate, nal Revenue Service; joint resolution, a report which is prepared by to the Congress not later than one year after the ‘‘(ii) progress of the Internal Revenue Service the Joint Committee on Taxation and which date of the enactment of this Act. Such study in meeting its objectives; identifies the provisions of the legislation add- shall examine the present protections for tax- ‘‘(iii) the budget for the Internal Revenue ing significant complexity or providing signifi- payer privacy, the need for third parties to use Service and whether it supports its objectives; cant simplification (as determined by the Joint tax return information, and the ability to ‘‘(iv) progress of the Internal Revenue Service Committee) and includes the basis for such de- achieve greater levels of voluntary compliance in improving taxpayer service and compliance; termination.’’ by allowing the public to know who is legally ‘‘(v) progress of the Internal Revenue Service (2) CLERICAL AMENDMENT.—The table of sec- required to file tax returns, but does not file tax on technology modernization; and tions for chapter 92 is amended by adding at the returns. ‘‘(vi) the annual filing season.’’ end the following new item: TITLE IV—CONGRESSIONAL ACCOUNT- (b) EFFECTIVE DATE.—The amendment made ‘‘Sec. 8024. Tax complexity analysis.’’ ABILITY FOR THE INTERNAL REVENUE by this section shall take effect on the date of SERVICE the enactment of this Act. (b) LEGISLATION SUBJECT TO POINT OF ORDER IN HOUSE OF REPRESENTATIVES.— Subtitle B—Budget Subtitle A—Oversight (1) LEGISLATION REPORTED BY COMMITTEE ON SEC. 401. EXPANSION OF DUTIES OF THE JOINT SEC. 411. FUNDING FOR CENTURY DATE CHANGE. WAYS AND MEANS.—Clause 2(l) of rule XI of the COMMITTEE ON TAXATION. It is the sense of Congress that the Internal Rules of the House of Representatives is amend- (a) IN GENERAL.—Section 8021 (relating to the Revenue Service efforts to resolve the century ed by adding at the end the following new sub- powers of the Joint Committee on Taxation) is date change computing problems should be paragraph: amended by adding at the end the following funded fully to provide for certain resolution of ‘‘(8) The report of the Committee on Ways and new subsections: such problems. Means on any bill or joint resolution containing ‘‘(e) INVESTIGATIONS.—The Joint Committee SEC. 412. FINANCIAL MANAGEMENT ADVISORY any provision amending the Internal Revenue shall review all requests (other than requests by GROUP. Code of 1986 shall include a Tax Complexity the chairman or ranking member of a Committee The Commissioner shall convene a financial Analysis prepared by the Joint Committee on or Subcommittee) for investigations of the Inter- management advisory group consisting of indi- Taxation in accordance with section 8024 of the nal Revenue Service by the General Accounting viduals with expertise in governmental account- Internal Revenue Code of 1986 unless the Com- Office, and approve such requests when appro- ing and auditing from both the private sector mittee on Ways and Means causes to have such priate, with a view towards eliminating overlap- and the Government to advise the Commissioner Analysis printed in the Congressional Record ping investigations, ensuring that the General on financial management issues, including— prior to the consideration of the bill or joint res- Accounting Office has the capacity to handle (1) the continued partnership between the In- olution.’’. the investigation, and ensuring that investiga- ternal Revenue Service and the General Ac- (2) CONFERENCE REPORTS.—Rule XXVIII of tions focus on areas of primary importance to counting Office; the Rules of the House of Representatives is tax administration. (2) the financial accounting aspects of the In- amended by adding at the end the following ‘‘(f) RELATING TO JOINT HEARINGS.— ternal Revenue Service’s system modernization; new clause: H10016 CONGRESSIONAL RECORD — HOUSE November 5, 1997 ‘‘7. It shall not be in order to consider the re- out regard to this subsection) would increase if ‘‘(B) which makes reimbursements or refunds port of a committee of conference which con- the limitation imposed by section 26(a) were in- (or similar amounts) to any individual of quali- tains any provision amending the Internal Rev- creased by the excess (if any) of— fied tuition and related expenses, enue Code of 1986 unless— ‘‘(i) the taxpayer’s social security taxes for the ‘‘(2) which is engaged in a trade or business of ‘‘(a) the accompanying joint explanatory taxable year, over making payments to any individual under an statement contains a Tax Complexity Analysis ‘‘(ii) the credit allowed under section 32 (de- insurance arrangement as reimbursements or re- prepared by the Joint Committee on Taxation in termined without regard to subsection (n)) for funds (or similar amounts) of qualified tuition accordance with section 8024 of the Internal the taxable year. and related expenses, or Revenue Code of 1986, or The amount of the credit allowed under this ‘‘(3) except as provided in regulations, any ‘‘(b) such Analysis is printed in the Congres- subsection shall not be treated as a credit al- person which is engaged in a trade or business sional Record prior to the consideration of the lowed under this subpart and shall reduce the and, in the course of which, receives from any report.’’. amount of credit otherwise allowable under sub- individual interest aggregating $600 or more for (c) EFFECTIVE DATE.—The amendments made section (a) without regard to section 26(a). any calendar year on 1 or more qualified edu- by this section shall apply to legislation consid- ‘‘(2) REDUCTION OF CREDIT TO TAXPAYER SUB- cation loans, ered on or after January 1, 1998. JECT TO ALTERNATIVE MINIMUM TAX.—The credit shall make the return described in subsection (b) TITLE V—CLARIFICATION OF DEDUCTION determined under this subsection for the taxable with respect to the individual at such time as FOR DEFERRED COMPENSATION year shall be reduced by the excess (if any) of— the Secretary may by regulations prescribe.’’ SEC. 501. CLARIFICATION OF DEDUCTION FOR ‘‘(A) the amount of tax imposed by section 55 (3) Subparagraph (A) of section 201(c)(2) of DEFERRED COMPENSATION. (relating to alternative minimum tax) with re- the 1997 Act is amended to read as follows: (a) IN GENERAL.—Subsection (a) of section 404 spect to such taxpayer for such taxable year, ‘‘(A) Subparagraph (B) of section 6724(d)(1) is amended by adding at the end the following over (relating to definitions) is amended by redesig- new paragraph: ‘‘(B) the amount of the reduction under sec- nating clauses (x) through (xv) as clauses (xi) ‘‘(11) DETERMINATIONS RELATING TO DEFERRED tion 32(h) with respect to such taxpayer for such through (xvi), respectively, and by inserting COMPENSATION.— taxable year.’’ after clause (ix) the following new clause: ‘‘(A) IN GENERAL.—For purposes of determin- (2) Paragraph (3) of section 24(d) of the 1986 ‘‘ ‘(x) section 6050S (relating to returns relat- ing under this section— Code (as redesignated by paragraph (1)) is ing to payments for qualified tuition and related ‘‘(i) whether compensation of an employee is amended by striking ‘‘paragraph (3)’’ and in- expenses),’ ’’. deferred compensation, and serting ‘‘paragraph (1)’’. (b) AMENDMENTS RELATED TO SECTION 211 OF ‘‘(ii) when deferred compensation is paid, (b) AMENDMENTS RELATED TO SECTION 101(b) 1997 ACT.— no amount shall be treated as received by the OF 1997 ACT.— (1) Paragraph (3) of section 135(c) of the 1986 employee, or paid, until it is actually received (1) The subsection (m) of section 32 of the 1986 Code is amended to read as follows: by the employee. Code added by section 101(b) of the 1997 Act is ‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— ‘‘(B) EXCEPTION.—Subparagraph (A) shall not amended to read as follows: The term ‘eligible educational institution’ has apply to severance pay.’’ ‘‘(n) SUPPLEMENTAL CHILD CREDIT.— the meaning given such term by section (b) SICK LEAVE PAY TREATED LIKE VACATION ‘‘(1) IN GENERAL.—In the case of a taxpayer 529(e)(5).’’. PAY.—Paragraph (5) of section 404(a) is amend- with respect to whom a credit is allowed under (2) Subparagraph (A) of section 529(c)(3) of ed by inserting ‘‘or sick leave pay’’ after ‘‘vaca- section 24 for the taxable year, the credit other- the 1986 Code is amended by striking ‘‘section tion pay’’. wise allowable under this section shall be in- 72(b)’’ and inserting ‘‘section 72’’. (c) AMENDMENTS RELATED TO SECTION 213 OF (c) EFFECTIVE DATE.— creased by the lesser of— (1) IN GENERAL.—The amendments made by ‘‘(A) the credit which would be allowed under 1997 ACT.— (1)(A) Section 530(b)(1)(E) of the 1986 Code this section shall apply to taxable years ending section 24 without regard to this subsection and (defining education individual retirement ac- after October 8, 1997. the limitation under section 26(a), or count) is amended to read as follows: (2) CHANGE IN METHOD OF ACCOUNTING.—In ‘‘(B) the amount by which the aggregate ‘‘(E) Any balance to the credit of the des- the case of any taxpayer required by this section amount of credits allowed by subpart A (without ignated beneficiary on the date on which the to change its method of accounting for its first regard to this subsection) would be reduced if beneficiary attains age 30 shall be distributed taxable year ending after October 8, 1997— the limitation imposed by section 26(a) were re- within 30 days after such date to the beneficiary (A) such change shall be treated as initiated duced by the excess (if any) of— or, if the beneficiary dies before attaining age by the taxpayer, ‘‘(i) the credit allowed by this section (without 30, shall be distributed within 30 days after the (B) such change shall be treated as made with regard to this subsection) for the taxable year, date of death to the estate of such beneficiary.’’ the consent of the Secretary of the Treasury, over (B) Subsection (d) of section 530 of the 1986 and ‘‘(ii) the taxpayer’s social security taxes (as Code is amended by adding at the end the fol- (C) the net amount of the adjustments re- defined in section 24(d)) for the taxable year. quired to be taken into account by the taxpayer lowing new paragraph: The credit determined under this subsection under section 481 of the Internal Revenue Code ‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DIS- shall be allowed without regard to any other of 1986 shall be taken into account in such first TRIBUTION DATE.—In any case in which a dis- provision of this section, including subsection taxable year. tribution is required under subsection (b)(1)(E), (d). any balance to the credit of a designated bene- TITLE VI—TAX TECHNICAL CORRECTIONS ‘‘(2) COORDINATION WITH OTHER CREDITS.— ficiary as of the close of the 30-day period re- ACT OF 1997 ‘‘(A) IN GENERAL.—The amount of the credit ferred to in such subsection for making such dis- SEC. 601. SHORT TITLE. under this subsection shall reduce the amount tribution shall be deemed distributed at the close This title may be cited as the ‘‘Tax Technical of the credit otherwise allowable under section of such period.’’ Corrections Act of 1997’’. 24, but the amount of the credit under this sub- (2)(A) Paragraph (1) of section 530(d) of the SEC. 602. DEFINITIONS. section (and such reduction) shall not otherwise 1986 Code is amended by striking ‘‘section 72(b)’’ For purposes of this title— be taken into account in determining the and inserting ‘‘section 72’’. (1) 1986 CODE.—The term ‘‘1986 Code’’ means amount of any other credit allowable under this (B) Subsection (e) of section 72 of the 1986 the Internal Revenue Code of 1986. part. Code is amended by inserting after paragraph (2) 1997 ACT.—The term ‘‘1997 Act’’ means the ‘‘(B) TREATMENT OF CREDIT UNDER SECTION (8) the following new paragraph: Taxpayer Relief Act of 1997. 24(d).—For purposes of this subsection, the cred- ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO QUALI- SEC. 603. AMENDMENTS RELATED TO TITLE I OF it determined under section 24(d) shall be treat- FIED STATE TUITION PROGRAMS AND EDU- 1997 ACT. ed as not allowed under section 24.’’ CATIONAL INDIVIDUAL RETIREMENT ACCOUNTS.— (a) AMENDMENTS RELATED TO SECTION 101(a) SEC. 604. AMENDMENTS RELATED TO TITLE II OF Notwithstanding any other provision of this OF 1997 ACT.— 1997 ACT. subsection, paragraph (2)(B) shall apply to (1) Subsection (d) of section 24 of the 1986 (a) AMENDMENTS RELATED TO SECTION 201 OF amounts received under a qualified State tuition Code is amended— 1997 ACT.— program (as defined in section 529(b)) or under (A) by striking paragraphs (3) and (4), (1) The item relating to section 25A in the an education individual retirement account (as (B) by redesignating paragraph (5) as para- table of sections for subpart A of part IV of sub- defined in section 530(b)). The rule of paragraph graph (3), and chapter A of chapter 1 of the 1986 Code is (8)(B) shall apply for purposes of this para- (C) by striking paragraphs (1) and (2) and in- amended to read as follows: graph.’’ serting the following new paragraphs: (3) So much of section 530(d)(4)(C) of the 1986 ‘‘Sec. 25A. Hope and Lifetime Learning credits.’’ ‘‘(1) IN GENERAL.—In the case of a taxpayer Code as precedes clause (ii) thereof is amended with 3 or more qualifying children for any tax- (2) Subsection (a) of section 6050S of the 1986 to read as follows: able year, the aggregate credits allowed under Code is amended to read as follows: ‘‘(C) CONTRIBUTIONS RETURNED BEFORE DUE subpart C shall be increased by the lesser of— ‘‘(a) IN GENERAL.—Any person— DATE OF RETURN.—Subparagraph (A) shall not ‘‘(A) the credit which would be allowed under ‘‘(1) which is an eligible educational institu- apply to the distribution of any contribution this section without regard to this subsection tion— made during a taxable year on behalf of the des- and the limitation under section 26(a), or ‘‘(A) which receives payments for qualified ignated beneficiary if— ‘‘(B) the amount by which the aggregate tuition and related expenses with respect to any ‘‘(i) such distribution is made on or before the amount of credits allowed by this subpart (with- individual for any calendar year, or day prescribed by law (including extensions of November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10017

time) for filing the beneficiary’s return of tax for ing subparagraph (B) and inserting the follow- ‘‘(4) AGGREGATION AND ORDERING RULES.— the taxable year or, if the beneficiary is not re- ing: ‘‘(A) AGGREGATION RULES.—Section 408(d)(2) quired to file such a return, the 15th day of the ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION PE- shall be applied separately with respect to— 4th month of the taxable year following the tax- RIOD.—A payment or distribution from a Roth ‘‘(i) Roth IRAs and other individual retire- able year, and’’. IRA shall not be treated as a qualified distribu- ment plans, (4) Subparagraph (C) of section 135(c)(2) of tion under subparagraph (A) if such payment or the 1986 Code is amended— distribution is made before the exclusion date ‘‘(ii) Roth IRAs described in paragraph (A) by inserting ‘‘AND EDUCATION INDIVIDUAL for the Roth IRA. (2)(C)(ii) and Roth IRAs not so described, and RETIREMENT ACCOUNTS’’ in the heading after ‘‘(C) EXCLUSION DATE.—For purposes of this ‘‘(iii) Roth IRAs described in paragraph ‘‘PROGRAM’’, and section, the exclusion date for any Roth IRA is (2)(C)(ii) with different exclusion dates. (B) by striking ‘‘section 529(c)(3)(A)’’ and in- the first day of the taxable year immediately fol- ‘‘(B) ORDERING RULES.—For purposes of ap- serting ‘‘section 72’’. lowing the 5-taxable year period beginning plying section 72 to any distribution from a (5) Subparagraph (A) of section 4973(e)(1) of with— Roth IRA which is not a qualified distribution, the 1986 Code is amended by inserting before the ‘‘(i) the first taxable year for which a con- such distribution shall be treated as made— comma ‘‘(or, if less, the sum of the maximum tribution to any Roth IRA maintained for the ‘‘(i) from contributions to the extent that the amounts permitted to be contributed under sec- benefit of the individual was made, or amount of such distribution, when added to all tion 530(c) by the contributors to such accounts ‘‘(ii) in the case of a Roth IRA to which 1 or previous distributions from the Roth IRA, does for such year)’’. more qualified rollover contributions were not exceed the aggregate contributions to the (d) AMENDMENT RELATED TO SECTION 224 OF made— Roth IRA, and 1997 ACT.—Section 170(e)(6)(F) of the 1986 Code ‘‘(I) from an individual retirement plan other ‘‘(ii) from such contributions in the following (relating to termination) is amended by striking than a Roth IRA, or order: ‘‘1999’’ and inserting ‘‘2000’’. ‘‘(II) from another Roth IRA to the extent (e) AMENDMENTS RELATED TO SECTION 225 OF such contributions are properly allocable to con- ‘‘(I) Qualified rollover contributions to the ex- 1997 ACT.— tributions described in subclause (I), tent includible in gross income in the manner (1) The last sentence of section 108(f)(2) of the the most recent taxable year for which any such described in paragraph (3)(A)(iii). 1986 Code is amended to read as follows: qualified rollover contribution was made.’’ ‘‘(II) Qualified rollover contributions not de- ‘‘The term ‘student loan’ includes any loan (4) Section 408A(d)(3) of the 1986 Code (relat- scribed in subclause (I) to the extent includible made by an educational organization described ing to rollovers from IRAs other than Roth in gross income under paragraph (3)(A). in section 170(b)(1)(A)(ii) or by an organization IRAs) is amended by adding at the end the fol- ‘‘(III) Contributions not described in sub- exempt from tax under section 501(a) to refi- lowing: clause (I) or (II). nance a loan to an individual to assist the indi- ‘‘(F) SPECIAL RULE FOR APPLYING SECTION Such rules shall also apply in determining the vidual in attending any such educational orga- 72.— character of qualified rollover contributions nization but only if the refinancing loan is pur- ‘‘(i) IN GENERAL.—If— from one Roth IRA to another Roth IRA.’’ suant to a program of the refinancing organiza- ‘‘(I) any distribution from a Roth IRA is made tion which is designed as described in subpara- before the exclusion date, and (B) Section 408A(d)(1) of the 1986 Code is graph (D)(ii).’’ ‘‘(II) any portion of such distribution is prop- amended to read as follows: (2) Section 108(f)(3) of the 1986 Code is amend- erly allocable to a qualified rollover contribution ‘‘(1) EXCLUSION.—Any qualified distribution ed by striking ‘‘(or by an organization described described in paragraph (2)(C)(ii), from a Roth IRA shall not be includible in gross in paragraph (2)(E) from funds provided by an then section 72(t) shall be applied as if such por- income.’’ organization described in paragraph (2)(D))’’. tion were includible in gross income. (6)(A) Section 408A(d) of the 1986 Code (relat- (f) AMENDMENTS RELATED TO SECTION 226 OF ‘‘(ii) LIMITATION.—Clause (i) shall apply only ing to distribution rules) is amended by adding 1997 ACT.— to the extent of the amount includible in gross at the end the following: (1) Section 226(a) of the 1997 Act is amended income under subparagraph (A)(i) by reason of ‘‘(6) TAXPAYER MAY MAKE ADJUSTMENTS BE- by striking ‘‘section 1397E’’ and inserting ‘‘sec- the qualified rollover contribution. FORE DUE DATE.— tion 1397D’’. ‘‘(G) SPECIAL RULES FOR CONTRIBUTIONS TO (2) Section 1397E(d)(4)(B) of the 1986 Code is ‘‘(A) IN GENERAL.—Except as provided by the WHICH 4-YEAR AVERAGING APPLIES.—In the case amended by striking ‘‘local education agency as Secretary, if, on or before the due date for any of a qualified rollover contribution to a Roth defined’’ and inserting ‘‘local educational agen- taxable year, a taxpayer transfers in a trustee- IRA of a distribution to which subparagraph cy as defined’’. to-trustee transfer any contribution to an indi- (A)(iii) applied, the following rules shall apply: vidual retirement plan made during such tax- SEC. 605. AMENDMENTS RELATED TO TITLE III OF ‘‘(i) DEATH OF DISTRIBUTEE.— 1997 ACT. able year from such plan to any other individ- ‘‘(I) IN GENERAL.—If the individual required ual retirement plan, then, for purposes of this (a) AMENDMENTS RELATED TO SECTION 301 OF to include amounts in gross income under such chapter, such contribution shall be treated as 1997 ACT.—Section 219(g) of the 1986 Code is subparagraph dies before all of such amounts having been made to the transferee plan (and amended— are included, all remaining amounts shall be in- not the transferor plan). (1) by inserting ‘‘or the individual’s spouse’’ cluded in gross income for the taxable year ‘‘(B) SPECIAL RULES.— after ‘‘individual’’ in paragraph (1), and which includes the date of death. (2) by striking paragraph (7) and inserting: ‘‘(II) SPECIAL RULE FOR SURVIVING SPOUSE.—If ‘‘(i) TRANSFER OF EARNINGS.—Subparagraph ‘‘(7) SPECIAL RULE FOR SPOUSES WHO ARE NOT the spouse of the individual described in sub- (A) shall not apply to the transfer of any con- ACTIVE PARTICIPANTS.—If this subsection applies clause (I) acquires the Roth IRA to which such tribution unless such transfer is accompanied by to an individual for any taxable year solely be- qualified rollover contribution is properly allo- any net income allocable to such contribution. cause their spouse is an active participant, cable, the spouse may elect to include the re- ‘‘(ii) NO DEDUCTION.—Subparagraph (A) shall then, in applying this subsection to the individ- maining amounts described in subclause (I) in apply to the transfer of any contribution only to ual (but not their spouse)— the spouse’s gross income in the taxable years of the extent no deduction was allowed with re- ‘‘(A) the applicable dollar amount under the spouse ending with or within the taxable spect to the contribution to the transferor plan. paragraph (3)(B)(i) shall be $150,000, and years of such individual in which such amounts ‘‘(C) DUE DATE.—For purposes of this para- ‘‘(B) the amount applicable under paragraph would otherwise have been includible. graph, the due date for any taxable year is the (2)(A)(ii) shall be $10,000.’’ ‘‘(ii) ADDITIONAL TAX FOR EARLY DISTRIBU- last date for filing the return of tax for such (b) AMENDMENTS RELATED TO SECTION 302 OF TION.— taxable year (including extensions).’’ 1997 ACT.— ‘‘(I) IN GENERAL.—If any distribution from a (B) Section 408A(d)(3) of the 1986 Code, as (1) Section 408A(c)(3)(A) of the 1986 Code is Roth IRA is made before the exclusion date, and amended by this subsection, is amended by amended by striking ‘‘shall be reduced’’ and in- any portion of such distribution is properly allo- striking subparagraph (D) and by redesignating serting ‘‘shall not exceed an amount equal to cable to such qualified rollover contribution, the subparagraphs (E), (F), and (G) as subpara- the amount determined under paragraph (2)(A) distributee’s tax under this chapter for the tax- graphs (D), (E), and (F), respectively. for such taxable year, reduced’’. able year in which the amount is received shall (2) Section 408A(c)(3) of the 1986 Code (relat- be increased by 10 percent of the amount of such (7) Section 302(b) of the 1997 Act is amended ing to limits based on modified adjusted gross portion not in excess of the amount includible in by striking ‘‘Section 4973(b)’’ and inserting income) is amended— gross income under subparagraph (A)(i) by rea- ‘‘Section 4973’’. (A) by inserting ‘‘or a married individual fil- son of such qualified rollover contribution. (8) Section 408A of the 1986 Code is amended ing a separate return’’ after ‘‘joint return’’ in ‘‘(II) TREATMENT OF TAX.—For purposes of by adding at the end the following new sub- subparagraph (A)(ii), and this title, any tax imposed by subclause (I) shall section: (B) by striking ‘‘and the deduction under sec- be treated as a tax imposed by section 72(t) and ‘‘(f) INDIVIDUAL RETIREMENT PLAN.—For pur- tion 219 shall be taken into account’’ in sub- shall be in addition to any other tax imposed by poses of this section, except as provided by the paragraph (C)(i). such section.’’ Secretary, the term ‘individual retirement plan’ (3) Section 408A(d)(2) of the 1986 Code (defin- (5)(A) Section 408A(d)(4) of the 1986 Code is shall not include a simplified employee pension ing qualified distribution) is amended by strik- amended to read as follows: or a simple retirement account.’’ H10018 CONGRESSIONAL RECORD — HOUSE November 5, 1997

(c) AMENDMENTS RELATED TO SECTION 303 OF ‘‘(ii) the amount of qualified 5-year gain (de- ‘‘(II) only gain from property held for more 1997 ACT.— termined by taking into account only property than 18 months were taken into account, over (1) Section 72(t)(8)(E) of the 1986 Code is the holding period for which begins after De- ‘‘(ii) the excess (if any) of— amended— cember 31, 2000), ‘‘(I) the amount described in paragraph (A) by striking ‘‘120 days’’ and inserting and 20 percent with respect to the remainder of (5)(A)(ii), over ‘‘120th day’’, and such amount. For purposes of determining ‘‘(II) the amount described in paragraph (B) by striking ‘‘60 days’’ and inserting ‘‘60th under the preceding sentence whether the hold- (5)(A)(i). day’’. ing period of property begins after December 31, ‘‘(B) LIMITATION WITH RESPECT TO SECTION (2)(A) Section 402(c) of the 1986 Code is 2000, the holding period of property acquired 1231 PROPERTY.—The amount described in sub- pursuant to the exercise of an option (or other amended by adding at the end the following: paragraph (A)(i) from sales, exchanges, and right or obligation to acquire property) shall in- ‘‘(11) DENIAL OF ROLLOVER TREATMENT FOR conversions described in section 1231(a)(3)(A) for clude the period such option (or other right or TRANSFERS OF HARDSHIP DISTRIBUTIONS TO INDI- any taxable year shall not exceed the net sec- obligation) was held. VIDUAL RETIREMENT PLANS.—This subsection tion 1231 gain (as defined in section 1231(c)(3)) ‘‘(3) NET CAPITAL GAIN TAKEN INTO ACCOUNT shall not apply to the transfer of any hardship for such year. distribution described in section AS INVESTMENT INCOME.—For purposes of this ‘‘(8) SECTION 1202 GAIN.—For purposes of this 401(k)(2)(B)(i)(IV) from a qualified cash or de- subsection, the net capital gain for any taxable subsection, the term ‘section 1202 gain’ means ferred arrangement to an eligible retirement year shall be reduced (but not below zero) by an amount equal to the gain excluded from plan described in clause (i) or (ii) of paragraph the amount which the taxpayer takes into ac- gross income under section 1202(a). (8)(B).’’ count as investment income under section (B) The amendment made by this paragraph 163(d)(4)(B)(iii). ‘‘(9) QUALIFIED 5-YEAR GAIN.—For purposes of shall apply to distributions made after December ‘‘(4) ADJUSTED NET CAPITAL GAIN.—For pur- this subsection, the term ‘qualified 5-year gain’ 31, 1997. poses of this subsection, the term ‘adjusted net means the amount of long-term capital gain which would be computed for the taxable year if (d) AMENDMENTS RELATED TO SECTION 311 OF capital gain’ means net capital gain reduced only gains from the sale or exchange of property 1997 ACT.— (but not below zero) by the sum of— held by the taxpayer for more than 5 years were (1) Subsection (h) of section 1 of the 1986 Code ‘‘(A) unrecaptured section 1250 gain, and taken into account. The determination under (relating to maximum capital gains rate) is ‘‘(B) 28 percent rate gain. the preceding sentence shall be made without re- amended to read as follows: ‘‘(5) 28 PERCENT RATE GAIN.—For purposes of this subsection— gard to collectibles gain, gain described in para- ‘‘(h) MAXIMUM CAPITAL GAINS RATE.— graph (7)(A)(i), and section 1202 gain. ‘‘(1) IN GENERAL.—If a taxpayer has a net ‘‘(A) IN GENERAL.—The term ‘28 percent rate ‘‘(10) COORDINATION WITH RECAPTURE OF NET capital gain for any taxable year, the tax im- gain’ means the excess (if any) of— ORDINARY LOSSES UNDER SECTION 1231.—If any posed by this section for such taxable year shall ‘‘(i) the sum of— amount is treated as ordinary income under sec- not exceed the sum of— ‘‘(I) the aggregate long-term capital gain from tion 1231(c), such amount shall be allocated ‘‘(A) a tax computed at the rates and in the property held for more than 1 year but not more than 18 months, among the separate categories of net section same manner as if this subsection had not been 1231 gain (as defined in section 1231(c)(3)) in enacted on the greater of— ‘‘(II) collectibles gain, and ‘‘(III) section 1202 gain, over such manner as the Secretary may by forms or ‘‘(i) taxable income reduced by the net capital regulations prescribe. gain, or ‘‘(ii) the sum of— ‘‘(11) REGULATIONS.—The Secretary may pre- ‘‘(ii) the lesser of— ‘‘(I) the aggregate long-term capital loss (not scribe such regulations as are appropriate (in- ‘‘(I) the amount of taxable income taxed at a described in subclause (IV)) from property re- ferred to in clause (i)(I), cluding regulations requiring reporting) to rate below 28 percent, or apply this subsection in the case of sales and ex- ‘‘(II) taxable income reduced by the adjusted ‘‘(II) collectibles loss, ‘‘(III) the net short-term capital loss, and changes by pass-thru entities and of interests in net capital gain, such entities. ‘‘(B) 10 percent of so much of the adjusted net ‘‘(IV) the amount of long-term capital loss ‘‘(12) PASS-THRU ENTITY DEFINED.—For pur- capital gain (or, if less, taxable income) as does carried under section 1212(b)(1)(B) to the tax- able year. poses of this subsection, the term ‘pass-thru en- not exceed the excess (if any) of— tity’ means— ‘‘(i) the amount of taxable income which ‘‘(B) SPECIAL RULES.— ‘‘(A) a regulated investment company, would (without regard to this paragraph) be ‘‘(i) SHORT SALES AND OPTIONS.—Rules similar taxed at a rate below 28 percent, over to the rules of subsections (b) and (d) of section ‘‘(B) a real estate investment trust, 1233 shall apply to substantially identical prop- ‘‘(ii) the taxable income reduced by the ad- ‘‘(C) an S corporation, erty, and section 1092(f) with respect to stock, justed net capital gain, ‘‘(D) a partnership, held for more than 1 year but not more than 18 ‘‘(C) 20 percent of the adjusted net capital ‘‘(E) an estate or trust, months. gain (or, if less, taxable income) in excess of the ‘‘(ii) SECTION 1256 CONTRACTS.—Amounts treat- ‘‘(F) a common trust fund, amount on which a tax is determined under sub- ed as long-term capital gain or loss under sec- ‘‘(G) a foreign investment company which is paragraph (B), tion 1256(a)(3) shall be treated as attributable to described in section 1246(b)(1) and for which an ‘‘(D) 25 percent of the excess (if any) of— property held for more than 18 months. election is in effect under section 1247, and ‘‘(i) the unrecaptured section 1250 gain (or, if ‘‘(6) COLLECTIBLES GAIN AND LOSS.—For pur- ‘‘(H) a qualified electing fund (as defined in less, the net capital gain), over poses of this subsection— section 1295). ‘‘(ii) the excess (if any) of— ‘‘(A) IN GENERAL.—The terms ‘collectibles ‘‘(13) SPECIAL RULES FOR PERIODS DURING ‘‘(I) the sum of the amount on which tax is gain’ and ‘collectibles loss’ mean gain or loss 1997.— determined under subparagraph (A) plus the net (respectively) from the sale or exchange of a col- capital gain, over ‘‘(A) DETERMINATION OF 28 PERCENT RATE lectible (as defined in section 408(m) without re- GAIN.—In applying paragraph (5)— ‘‘(II) taxable income, and gard to paragraph (3) thereof) which is a capital ‘‘(i) the amount determined under subclause ‘‘(E) 28 percent of the amount of taxable in- asset held for more than 18 months but only to (I) of paragraph (5)(A)(i) shall include long- come in excess of the sum of the amounts on the extent such gain is taken into account in term capital gain (not otherwise described in which tax is determined under the preceding computing gross income and such loss is taken paragraph (5)(A)(i)) which is properly taken subparagraphs of this paragraph. into account in computing taxable income. into account for the portion of the taxable year ‘‘(2) REDUCED CAPITAL GAIN RATES FOR QUALI- ‘‘(B) PARTNERSHIPS, ETC.—For purposes of before May 7, 1997, FIED 5-YEAR GAIN.— subparagraph (A), any gain from the sale of an ‘‘(A) REDUCTION IN 10-PERCENT RATE.—In the interest in a partnership, S corporation, or trust ‘‘(ii) the amounts determined under subclause case of any taxable year beginning after Decem- which is attributable to unrealized appreciation (I) of paragraph (5)(A)(ii) shall include long- ber 31, 2000, the rate under paragraph (1)(B) in the value of collectibles shall be treated as term capital loss (not otherwise described in shall be 8 percent with respect to so much of the gain from the sale or exchange of a collectible. paragraph (5)(A)(ii)) which is properly taken amount to which the 10-percent rate would oth- Rules similar to the rules of section 751 shall into account for the portion of the taxable year erwise apply as does not exceed qualified 5-year apply for purposes of the preceding sentence. before May 7, 1997, and gain, and 10 percent with respect to the remain- ‘‘(7) UNRECAPTURED SECTION 1250 GAIN.—For ‘‘(iii) clauses (i)(I) and (ii)(I) of paragraph der of such amount. purposes of this subsection— (5)(A) shall be applied by not taking into ac- ‘‘(B) REDUCTION IN 20-PERCENT RATE.—The ‘‘(A) IN GENERAL.—The term ‘unrecaptured count any gain and loss on property held for rate under paragraph (1)(C) shall be 18 percent section 1250 gain’ means the excess (if any) of— more than 1 year but not more than 18 months with respect to so much of the amount to which ‘‘(i) the amount of long-term capital gain (not which is properly taken into account for the the 20-percent rate would otherwise apply as otherwise treated as ordinary income) which portion of the taxable year after May 6, 1997, does not exceed the lesser of— would be treated as ordinary income if— and before July 29, 1997. ‘‘(i) the excess of qualified 5-year gain over ‘‘(I) section 1250(b)(1) included all deprecia- ‘‘(B) OTHER SPECIAL RULES.— the amount of such gain taken into account tion and the applicable percentage under sec- ‘‘(i) DETERMINATION OF UNRECAPTURED SEC- under subparagraph (A) of this paragraph, or tion 1250(a) were 100 percent, and TION 1250 GAIN NOT TO INCLUDE PRE-MAY 7, 1997 November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10019

GAIN.—The amount determined under para- ‘‘(II) the period after the date of the most re- decedent’s spouse) between the date of the gift graph (7)(A)(i) shall not include gain properly cent prior sale or exchange by the taxpayer to and the date of the decedent’s death.’’ taken into account for the portion of the taxable which subsection (a) applied and before the date (c) AMENDMENTS RELATED TO SECTION 503 OF year before May 7, 1997. of such sale or exchange, bears to THE 1997 ACT.— ‘‘(ii) OTHER TRANSITIONAL RULES FOR 18- ‘‘(ii) 2 years.’’. (1) Clause (iii) of section 6166(b)(7)(A) of the MONTH HOLDING PERIOD.—Paragraphs (6)(A) (2) Section 312(d)(2) of the 1997 Act (relating 1986 Code is amended to read as follows: and (7)(A)(i)(II) shall be applied by substituting to sales before date of enactment) is amended by ‘‘(iii) for purposes of applying section 6601(j), ‘1 year’ for ‘18 months’ with respect to gain inserting ‘‘on or’’ before ‘‘before’’ each place it the 2-percent portion (as defined in such sec- properly taken into account for the portion of appears in the text and heading. tion) shall be treated as being zero.’’ the taxable year after May 6, 1997, and before (f) AMENDMENT RELATED TO SECTION 313 OF (2) Clause (iii) of section 6166(b)(8)(A) of the July 29, 1997. 1997 ACT.—Section 1045 of the 1986 Code is 1986 Code is amended to read as follows: ‘‘(C) SPECIAL RULES FOR PASS-THRU ENTI- amended by adding at the end the following ‘‘(iii) 2-PERCENT INTEREST RATE NOT TO TIES.—In applying this paragraph with respect new subsection: APPLY.—For purposes of applying section to any pass-thru entity, the determination of ‘‘(c) LIMITATION ON APPLICATION TO PARTNER- 6601(j), the 2-percent portion (as defined in such when gains and loss are properly taken into ac- SHIPS AND S CORPORATIONS.—Subsection (a) section) shall be treated as being zero.’’ count shall be made at the entity level.’’ shall apply to a partnership or S corporation for (d) AMENDMENT RELATED TO SECTION 505 OF (2) IN GENERAL.—Paragraph (3) of section a taxable year only if at all times during such 55(b) of the 1986 Code is amended to read as fol- taxable year all of the partners in the partner- THE 1997 ACT.—Paragraphs (1) and (2) of sec- lows: ship, or all of the shareholders of the S corpora- tion 7479(a) of the 1986 Code are each amended by striking ‘‘an estate,’’ and inserting ‘‘an es- ‘‘(3) MAXIMUM RATE OF TAX ON NET CAPITAL tion, are natural persons or estates.’’ tate (or with respect to any property included GAIN OF NONCORPORATE TAXPAYERS.—The SEC. 606. AMENDMENTS RELATED TO TITLE V OF therein),’’. amount determined under the first sentence of 1997 ACT. (e) AMENDMENTS RELATED TO SECTION 506 OF paragraph (1)(A)(i) shall not exceed the sum (a) AMENDMENTS RELATED TO SECTION 501 OF THE 1997 ACT.— of— 1997 ACT.— ‘‘(A) the amount determined under such first (1) Subsection (c) of section 2631 of the 1986 (1) Subsection (c) of section 2504 of the 1986 sentence computed at the rates and in the same Code is amended by striking ‘‘an individual who Code is amended by striking ‘‘was assessed or manner as if this paragraph had not been en- dies’’ and inserting ‘‘a generation-skipping paid’’ and inserting ‘‘was finally determined for acted on the taxable excess reduced by the lesser transfer’’. purposes of this chapter’’. of— (2) Subsection (f) of section 501 of the 1997 Act (2) Paragraph (1) of section 506(e) of the 1997 ‘‘(i) the net capital gain, or is amended by inserting ‘‘(other than the Act is amended by striking ‘‘and (c)’’ and in- ‘‘(ii) the sum of— amendment made by subsection (d))’’ after ‘‘this serting ‘‘, (c), and (d)’’. ‘‘(I) the adjusted net capital gain, plus section’’. SEC. 607. AMENDMENTS RELATED TO TITLE VII ‘‘(II) the unrecaptured section 1250 gain, plus (b) AMENDMENTS RELATED TO SECTION 502 OF OF 1997 ACT. ‘‘(B) 10 percent of so much of the adjusted net 1997 ACT.— (a) AMENDMENT RELATED TO SECTION 1400 OF capital gain (or, if less, taxable excess) as does (1) Subsection (a) of section 2033A of the 1986 1986 CODE.—Section 1400(b)(2)(B) of the 1986 not exceed the amount on which a tax is deter- Code is amended to read as follows: Code is amended by inserting ‘‘as determined on mined under section 1(h)(1)(B), plus ‘‘(a) EXCLUSION.— the basis of the 1990 census’’ after ‘‘percent’’. ‘‘(C) 20 percent of the adjusted net capital ‘‘(1) IN GENERAL.—In the case of an estate of (b) AMENDMENTS RELATED TO SECTION 1400B gain (or, if less, taxable excess) in excess of the a decedent to which this section applies, the OF 1986 CODE.— amount on which tax is determined under sub- value of the gross estate shall not include the (1) Section 1400B(d)(2) of the 1986 Code is paragraph (B), plus lesser of— amended by inserting ‘‘as determined on the ‘‘(D) 25 percent of the amount of taxable ex- ‘‘(A) the adjusted value of the qualified fam- basis of the 1990 census’’ after ‘‘percent’’. cess in excess of the sum of the amounts on ily-owned business interests of the decedent oth- (2) Section 1400B(b) of the 1986 Code is amend- which tax is determined under the preceding erwise includible in the estate, or ed by redesignating paragraphs (6) and (7) as subparagraphs of this paragraph. ‘‘(B) the exclusion limitation with respect to paragraphs (5) and (6), respectively. In the case of taxable years beginning after De- such estate. (c) AMENDMENTS RELATED TO SECTION 1400C cember 31, 2000, rules similar to the rules of sec- ‘‘(2) EXCLUSION LIMITATION.— OF 1986 CODE.— tion 1(h)(2) shall apply for purposes of subpara- ‘‘(A) IN GENERAL.—The exclusion limitation (1) Paragraph (1) of section 1400C(c) of the graphs (B) and (C). Terms used in this para- with respect to any estate is the amount of re- 1986 Code is amended to read as follows: duction in the tentative tax base with respect to graph which are also used in section 1(h) shall ‘‘(1) IN GENERAL.—The term ‘first-time home- such estate which would be required in order to have the respective meanings given such terms buyer’ means any individual if such individual reduce the tax imposed by section 2001(b) (deter- by section 1(h) but computed with the adjust- (and if married, such individual’s spouse) had mined without regard to this section) by an ments under this part.’’. no present ownership interest in a principal res- amount equal to the maximum credit equivalent (3) Section 57(a)(7) of the 1986 Code is amend- idence in the District of Columbia during the 1- benefit. ed by adding at the end the following new sen- year period ending on the date of the purchase tence: ‘‘In the case of stock the holding period ‘‘(B) MAXIMUM CREDIT EQUIVALENT BENE- of the principal residence to which this section of which begins after December 31, 2000 (deter- FIT.—For purposes of subparagraph (A), the applies.’’ term ‘maximum credit equivalent benefit’ means mined with the application of the last sentence (2) Subparagraph (B) of section 1400C(e)(2) of the excess of— of section 1(h)(2)(B)), the preceding sentence the 1986 Code is amended by inserting before the ‘‘(i) the amount by which the tentative tax im- shall be applied by substituting ‘28 percent’ for period ‘‘on the date the taxpayer first occupies posed by section 2001(b) (determined without re- ‘42 percent’.’’. such residence’’. (4) Paragraphs (11) and (12) of section 1223, gard to this section) would be reduced if the ten- tative tax base were reduced by $675,000, over (3) Paragraph (3) of section 1400C(e) of the and section 1235(a), of the 1986 Code are each 1986 Code is amended by striking all that follows ‘‘(ii) the amount by which the applicable cred- amended by striking ‘‘1 year’’ each place it ap- ‘‘principal residence’’ and inserting ‘‘on the it amount under section 2010(c) with respect to pears and inserting ‘‘18 months’’. date such residence is purchased.’’ (e) AMENDMENTS RELATED TO SECTION 312 OF such estate exceeds such applicable credit (4) Subsection (i) of section 1400C of the 1986 1997 ACT.— amount in effect for 1998. Code is amended to read as follows: (1) Section 121(c)(1) of the 1986 Code is amend- ‘‘(C) TENTATIVE TAX BASE.—For purposes of ‘‘(i) APPLICATION OF SECTION.—This section ed to read as follows: this paragraph, the term ‘tentative tax base’ shall apply to property purchased after August ‘‘(1) IN GENERAL.—In the case of a sale or ex- means the amount with respect to which the tax 4, 1997, and before January 1, 2001.’’ change to which this subsection applies, the imposed by section 2001(b) would be computed ownership and use requirements of subsection without regard to this section.’’ (5) Subsection (c) of section 23 of the 1986 (a), and subsection (b)(3), shall not apply; but (2) Section 2033A(b)(3) of the 1986 Code is Code is amended by inserting ‘‘and section the dollar limitation under paragraph (1) or (2) amended to read as follows: 1400C’’ after ‘‘other than this section’’. of subsection (b), whichever is applicable, shall ‘‘(3) INCLUDIBLE GIFTS OF INTERESTS.—The (6) Subparagraph (C) of section 25(e)(1) of the be equal to— amount of the gifts of qualified family-owned 1986 Code is amended by striking ‘‘section 23’’ ‘‘(A) the amount which bears the same ratio business interests determined under this para- and inserting ‘‘sections 23 and 1400C’’. to such limitation (determined without regard to graph is the sum of— SEC. 608. AMENDMENTS RELATED TO TITLE IX OF this paragraph) as ‘‘(A) the amount of such gifts from the dece- 1997 ACT. ‘‘(B)(i) the shorter of— dent to members of the decedent’s family taken (a) AMENDMENT RELATED TO SECTION 901 OF ‘‘(I) the aggregate periods, during the 5-year into account under section 2001(b)(1)(B), plus 1997 ACT.—Section 9503(c)(7) of the 1986 Code is period ending on the date of such sale or ex- ‘‘(B) the amount of such gifts otherwise ex- amended— change, such property has been owned and used cluded under section 2503(b), (1) by striking ‘‘resulting from the amend- by the taxpayer as the taxpayer’s principal resi- to the extent such interests are continuously ments made by’’ and inserting ‘‘(and transfers dence, or held by members of such family (other than the to the Mass Transit Account) resulting H10020 CONGRESSIONAL RECORD — HOUSE November 5, 1997 from the amendments made by subsections (a) the extent that the percentage of stock owned ‘‘(E) MASTER CONTRACTS.—If coverage for and (b) of section 901 of’’, and directly or indirectly in such corporation by each insured under a master contract is treated (2) by inserting before the period ‘‘and depos- each person owning stock in such corporation as a separate contract for purposes of sections its in the Highway Trust Fund (and transfers to immediately before the acquisition does not de- 817(h), 7702, and 7702A, coverage for each such the Mass Transit Account) shall be treated as crease.’’ insured shall be treated as a separate contract made when they would have been required to be (c) AMENDMENTS RELATED TO SECTION 1014 OF for purposes of subparagraph (A). For purposes made without regard to section 901(e) of the 1997 ACT.— of the preceding sentence, the term ‘master con- Taxpayer Relief Act of 1997’’. (1) Paragraph (1) of section 351(g) of the 1986 tract’ shall not include any group life insurance (b) AMENDMENT RELATED TO SECTION 907 OF Code is amended by adding ‘‘and’’ at the end of contract (as defined in section 848(e)(2)).’’ subparagraph (A) and by striking subpara- 1997 ACT.—Paragraph (2) of section 9503(e) of (4)(A) Clause (iv) of section 264(f)(5)(A) of the graphs (B) and (C) and inserting the following the 1986 Code is amended by striking the last 1986 Code is amended by striking the second sen- new subparagraph: sentence and inserting the following new sen- tence. tence: ‘‘For purposes of the preceding sentence, ‘‘(B) if (and only if) the transferor receives (B) Subparagraph (B) of section 6724(d)(1) of the term ‘mass transit portion’ means, for any stock other than nonqualified preferred stock— the 1986 Code is amended by striking ‘‘or’’ at the fuel with respect to which tax was imposed ‘‘(i) subsection (b) shall apply to such trans- end of clause (xv), by striking the period at the under section 4041 or 4081 and otherwise depos- feror, and end of clause (xvi) and inserting ‘‘, or’’, and by ited into the Highway Trust Fund, the amount ‘‘(ii) such nonqualified preferred stock shall adding at the end the following new clause: determined at the rate of— be treated as other property for purposes of ap- plying subsection (b).’’ ‘‘(A) except as otherwise provided in this sen- ‘‘(xvii) section 264(f)(5)(A)(iv) (relating to re- (2) Clause (ii) of section 354(a)(2)(C) of 1986 tence, 2.86 cents per gallon, porting with respect to certain life insurance Code is amended by adding at the end the fol- and annuity contracts).’’ ‘‘(B) 1.77 cents per gallon in the case of any lowing new subclause: partially exempt methanol or ethanol fuel (as ‘‘(III) EXTENSION OF STATUTE OF LIMITA- (C) Paragraph (2) of section 6724(d) of the defined in section 4041(m)) none of the alcohol TIONS.—The statutory period for the assessment 1986 Code is amended by striking ‘‘or’’ at the in which consists of ethanol, of any deficiency attributable to a corporation end of subparagraph (Y), by striking the period ‘‘(C) 1.86 cents per gallon in the case of lique- failing to be a family-owned corporation shall at the end of subparagraph (Z) and inserting fied natural gas, not expire before the expiration of 3 years after ‘‘or’’, and by adding at the end the following ‘‘(D) 2.13 cents per gallon in the case of lique- the date the Secretary is notified by the corpora- new subparagraph: fied petroleum gas, and tion (in such manner as the Secretary may pre- ‘‘(AA) section 264(f)(5)(A)(iv) (relating to re- ‘‘(E) 9.71 cents per MCF (determined at stand- scribe) of such failure, and such deficiency may porting with respect to certain life insurance ard temperature and pressure) in the case of be assessed before the expiration of such 3-year and annuity contracts).’’ compressed natural gas.’’ period notwithstanding the provisions of any (j) AMENDMENT RELATED TO SECTION 1085 OF (c) AMENDMENT RELATED TO SECTION 976 OF other law or rule of law which would otherwise 1997 ACT.—Paragraph (5) of section 32(c) of the prevent such assessment.’’ 1997 ACT.—Section 6103(d)(5) of the 1986 Code is 1986 Code is amended— amended by striking ‘‘section 967 of the Tax- (d) AMENDMENT RELATED TO SECTION 1024 OF payer Relief Act of 1997.’’ and inserting ‘‘section 1997 ACT.—Section 6331(h)(1) of the 1986 Code is (1) by inserting before the period at the end of 976 of the Taxpayer Relief Act of 1997. Sub- amended by striking ‘‘The effect of a levy’’ and subparagraph (A) ‘‘and increased by the sections (a)(2) and (p)(4) and sections 7213 and inserting ‘‘If the Secretary approves a levy amounts described in subparagraph (C)’’, 7213A shall not apply with respect to disclosures under this subsection, the effect of such levy’’. (2) by adding ‘‘or’’ at the end of clause (iii) of or inspections made pursuant to this para- (e) AMENDMENTS RELATED TO SECTION 1031 OF subparagraph (B), and graph.’’ 1997 ACT.— (1) Subsection (l) of section 4041 of the 1986 (3) by striking all that follows subclause (II) SEC. 609. AMENDMENTS RELATED TO TITLE X OF of subparagraph (B)(iv) and inserting the fol- 1997 ACT. Code is amended by striking ‘‘subsection (e) or (f)’’ and inserting ‘‘subsection (f) or (g)’’. lowing: (a) AMENDMENTS RELATED TO SECTION 1001 OF (2) Subsection (b) of section 9502 of the 1986 ‘‘(III) other trades or businesses. 1997 ACT.— Code is amended by moving the sentence added For purposes of clause (iv), there shall not be (1) Paragraph (2) of section 1259(b) of the 1986 at the end of paragraph (1) to the end of such Code is amended— taken into account items which are attributable subsection. to a trade or business which consists of the per- (A) by striking ‘‘debt’’ each place it appears (3) Subsection (c) of section 6421 of the 1986 in clauses (i) and (ii) of subparagraph (A) and formance of services by the taxpayer as an em- Code is amended— ployee. inserting ‘‘position’’, (A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’, (B) by striking ‘‘and’’ at the end of subpara- and ‘‘(C) CERTAIN AMOUNTS INCLUDED.—An graph (A), and (B) by adding at the end the following sen- amount is described in this subparagraph if it (C) by redesignating subparagraph (B) as sub- tence: ‘‘Subsection (a) shall not apply to gaso- is— paragraph (C) and by inserting after subpara- line to which this subsection applies.’’ ‘‘(i) interest received or accrued during the graph (A) the following new subparagraph: (f) AMENDMENTS RELATED TO SECTION 1032 OF taxable year which is exempt from tax imposed ‘‘(B) any hedge with respect to a position de- 1997 ACT.— by this chapter, or (1) Section 1032(a) of the 1997 Act is amended scribed in subparagraph (A), and’’. ‘‘(ii) amounts received as a pension or annu- by striking ‘‘Subsection (a) of section 4083’’ and (2) Section 1259(d)(1) of the 1986 Code is ity, and any distributions or payments received inserting ‘‘Paragraph (1) of section 4083(a)’’. amended by inserting ‘‘(including cash)’’ after from an individual retirement plan, by the tax- (2) Section 1032(e)(12)(A) of the 1997 Act shall ‘‘property’’. payer during the taxable year to the extent not be applied as if ‘‘gasoline, diesel fuel,’’ were the (3) Subparagraph (D) of section 475(f)(1) of included in gross income. the 1986 Code is amended by adding at the end material proposed to be stricken. the following new sentence: ‘‘Subsection (d)(3) (3) Paragraph (1) of section 4101(e) of the 1986 Clause (ii) shall not include any amount which shall not apply under the preceding sentence for Code is amended by striking ‘‘dyed diesel fuel is not includible in gross income by reason of purposes of applying sections 1402 and 7704.’’ and kerosene’’ and inserting ‘‘such fuel in a section 402(c), 403(a)(4), 403(b), 408(d) (3), (4), or (4) Subparagraph (C) of section 1001(d)(3) of dyed form’’. (5), or 457(e)(10).’’ (g) AMENDMENT RELATED TO SECTION 1055 OF the 1997 Act is amended by striking ‘‘within the (k) AMENDMENT RELATED TO SECTION 1088 OF 1997 ACT.—Section 6611(g)(1) of the 1986 Code is 30-day period beginning on’’ and inserting ‘‘be- 1997 ACT.—Section 1088(b)(2)(C) of the 1997 Act amended by striking ‘‘(e), and (h)’’ and insert- fore the close of the 30th day after’’. is amended by inserting ‘‘more than 1 year’’ be- ing ‘‘and (e)’’. (b) AMENDMENTS RELATED TO SECTION 1012 OF fore ‘‘after’’. (h) AMENDMENT RELATED TO SECTION 1083 OF 1997 Act.— 1997 ACT.—Section 1083(a)(2) of the 1997 Act is (l) AMENDMENT RELATED TO SECTION 1089 OF (1) Paragraph (1) of section 1012(d) of the 1997 amended— 1997 ACT.—Paragraphs (1)(C) and (2)(C) of sec- Act is amended by striking ‘‘1997, pursuant’’ (1) by striking ‘‘21’’ and inserting ‘‘20’’, and tion 664(d) of the 1986 Code are each amended and inserting ‘‘1997; except that the amendment (2) by striking ‘‘22’’ and inserting ‘‘21’’. by adding ‘‘, and’’ at the end. made by subsection (a) shall apply to such dis- (i) AMENDMENT RELATED TO SECTION 1084 OF tributions only if pursuant’’. SEC. 610. AMENDMENTS RELATED TO TITLE XI OF 1997 ACT.— 1997 ACT. (2) Subparagraph (A) of section 355(e)(3) of (1) Paragraph (3) of section 264(a) of the 1986 the 1986 Code is amended— Code is amended by striking ‘‘subsection (c)’’ (a) AMENDMENT RELATED TO SECTION 1103 OF (A) by striking ‘‘shall not be treated as de- and inserting ‘‘subsection (d)’’. 1997 ACT.—The paragraph (3) of section 59(a) scribed in’’ and inserting ‘‘shall not be taken (2) Paragraph (4) of section 264(a) of the 1986 added by section 1103 of the 1997 Act is redesig- into account in applying’’, and Code is amended by striking ‘‘subsection (d)’’ nated as paragraph (4). (B) by striking clause (iv) and inserting the and inserting ‘‘subsection (e)’’. (b) AMENDMENT RELATED TO SECTION 1121 OF following new clause: (3) Paragraph (4) of section 264(f) of the 1986 1997 ACT.—Section 1298(a)(2)(B) of the 1986 ‘‘(iv) The acquisition of stock in the distribut- Code is amended by adding at the end the fol- Code is amended by adding at the end the fol- ing corporation or any controlled corporation to lowing new subparagraph: lowing new sentence: ‘‘Section 1297(e) November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10021 shall not apply in determining whether a cor- the 1986 Code is amended by inserting ‘‘or on SEC. 616. AMENDMENT RELATED TO OMNIBUS poration is a passive foreign investment com- which tax has been credited or refunded’’ after BUDGET RECONCILIATION ACT OF pany for purposes of this subparagraph.’’ ‘‘such paragraph’’. 1993. (c) AMENDMENT RELATED TO SECTION 1122 OF SEC. 614. AMENDMENTS RELATED TO TITLE XV (a) IN GENERAL.—Section 196(c) of the 1986 1997 ACT.—Section 672(f)(3)(B) of the 1986 Code OF 1997 ACT. Code is amended by striking ‘‘and’’ at the end is amended by striking ‘‘section 1296’’ and in- (a) AMENDMENT RELATED TO SECTION 1501 OF of paragraph (6), by striking the period at the serting ‘‘section 1297’’. 1997 ACT.—The paragraph (8) of section 408(p) end of paragraph (7), and insert ‘‘, and’’, and (d) AMENDMENT RELATED TO SECTION 1123 OF of the 1986 Code added by section 1501(b) of the by adding at the end the following new para- 1997 ACT.—The subsection (e) of section 1297 of 1997 Act is redesignated as paragraph (9). graph: the 1986 Code added by section 1123 of the 1997 (b) AMENDMENT RELATED TO SECTION 1505 OF ‘‘(8) the employer social security credit deter- Act is redesignated as subsection (f). 1997 ACT.—Section 1505(d)(2) of the 1997 Act is mined under section 45B(a).’’ (e) AMENDMENT RELATED TO SECTION 1144 OF amended by striking ‘‘(b)(12)’’ and inserting (b) EFFECTIVE DATE.—The amendment made 1997 ACT.—Paragraphs (1) and (2) of section ‘‘(b)(12)(A)(i)’’. by this section shall take effect as if included in 1144(c) of the 1997 Act are each amended by (c) AMENDMENT RELATED TO SECTION 1531 OF the amendments made by section 13443 of the striking ‘‘6038B(b)’’ and inserting ‘‘6038B(c) (as 1997 ACT.—Subsection (f) of section 9811 of the Revenue Reconciliation Act of 1993. redesignated by subsection (b))’’. 1986 Code (as added by section 1531 of the 1997 SEC. 617. AMENDMENT RELATED TO TAX REFORM SEC. 611. AMENDMENTS RELATED TO TITLE XII Act) is redesignated as subsection (e). ACT OF 1984. OF 1997 ACT. SEC. 615. AMENDMENTS RELATED TO TITLE XVI. (a) IN GENERAL.—Paragraph (3) of section (a) AMENDMENT RELATED TO SECTION 1204 OF (a) AMENDMENTS RELATED TO SECTION 1601(d) 136(c) of the Tax Reform Act of 1984 is amended 1997 ACT.—The last sentence of section 162(a) of OF 1997 ACT.— by adding at the end the following flush sen- the 1986 Code is amended by striking ‘‘inves- (1) AMENDMENTS RELATED TO SECTION tence: tigate’’ and all that follows and inserting ‘‘in- 1601(d)(1)— vestigate or prosecute, or provide support serv- ‘‘The treatment under the preceding sentence ices for the investigation or prosecution of, a (A) Section 408(p)(2)(D)(i) of the 1986 Code is shall apply to each period after June 30, 1983, Federal crime.’’ amended by striking ‘‘or (B)’’ in the last sen- during which such members are stapled entities, tence. (b) AMENDMENTS RELATED TO SECTION 1205 OF whether or not such members are stapled entities 1997 ACT.— (B) Section 408(p) of the 1986 Code is amended for all periods after June 30, 1983.’’ by adding at the end the following: (1) Section 6311(e)(1) of the 1986 Code is (b) EFFECTIVE DATE.—The amendment made amended by striking ‘‘section 6103(k)(8)’’ and ‘‘(10) SPECIAL RULES FOR ACQUISITIONS, DIS- by subsection (a) shall take effect as if included inserting ‘‘section 6103(k)(9)’’. POSITIONS, AND SIMILAR TRANSACTIONS.— in the Tax Reform Act of 1984 as of the date of (2) Paragraph (8) of section 6103(k) of the 1986 ‘‘(A) IN GENERAL.—An employer which fails to the enactment of such Act. Code (as added by section 1205(c)(1) of the 1997 meet any applicable requirement by reason of an acquisition, disposition, or similar transaction SEC. 618. AMENDMENT RELATED TO TAX REFORM Act) is redesignated as paragraph (9). ACT OF 1986. (3) The heading for section 7431(g) of the 1986 shall not be treated as failing to meet such re- (a) IN GENERAL.—Section 6401(b)(1) of the 1986 Code is amended by striking ‘‘(8)’’ and inserting quirement during the transition period if— Code is amended by striking ‘‘and D’’ and in- ‘‘(9)’’. ‘‘(i) the employer satisfies requirements similar serting ‘‘D, and G’’. (4) Section 1205(c)(3) of the 1997 Act shall be to the requirements of section 410(b)(6)(C)(i)(II), applied as if it read as follows: and (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect as if included ‘‘(3) Section 6103(p)(3)(A), as amended by sec- ‘‘(ii) the qualified salary reduction arrange- in the amendments made by section 701(b) of the tion 1026(b)(1)(A), is amended by striking ‘‘or ment maintained by the employer would satisfy Tax Reform Act of 1986. (8)’’ and inserting ‘‘(8), or (9)’’. the requirements of this subsection after the (5) Section 1213(b) of the 1997 Act is amended transaction if the employer which maintained SEC. 619. MISCELLANEOUS CLERICAL AND DEAD- by striking ‘‘section 6724(d)(1)(A)’’ and inserting the arrangement before the transaction had re- WOOD CHANGES. ‘‘section 6724(d)(1)’’. mained a separate employer. (a)(1) Section 6421 of the 1986 Code is amended (c) AMENDMENT RELATED TO SECTION 1226 OF ‘‘(B) APPLICABLE REQUIREMENT.—For pur- by redesignating subsections (j) and (k) as sub- 1997 ACT.—Section 1226 of the 1997 Act is poses of this paragraph, the term ‘applicable re- sections (i) and (j), respectively. amended by striking ‘‘ending on or’’ and insert- quirement’ means— (2) Subsection (b) of section 34 of the 1986 ing ‘‘beginning’’. ‘‘(i) the requirement under paragraph (2)(A)(i) Code is amended by striking ‘‘section 6421(j)’’ (d) AMENDMENT RELATED TO SECTION 1285 OF that an employer be an eligible employer, and inserting ‘‘section 6421(i)’’. 1997 ACT.—Section 7430(b) of the 1986 Code is ‘‘(ii) the requirement under paragraph (2)(D) (3) Subsections (a) and (b) of section 6421 of amended by redesignating paragraph (5) as that an arrangement be the only plan of an em- the 1986 Code are each amended by striking paragraph (4). ployer, and ‘‘subsection (j)’’ and inserting ‘‘subsection (i)’’. ‘‘(iii) the participation requirements under SEC. 612. AMENDMENTS RELATED TO TITLE XIII (b) Sections 4092(b) and 6427(q)(2) of the 1986 paragraph (4). OF 1997 ACT. Code are each amended by striking ‘‘section (a) Section 646 of the 1986 Code is redesig- ‘‘(C) TRANSITION PERIOD.—For purposes of 4041(c)(4)’’ and inserting ‘‘section 4041(c)(2)’’. this paragraph, the term ‘transition period’ nated as section 645. (c) Sections 4221(c) and 4222(d) of the 1986 means the period beginning on the date of any (b) The item relating to section 646 in the table Code are each amended by striking ‘‘4053(a)(6)’’ transaction described in subparagraph (A) and of sections for subpart A of part I of subchapter and inserting ‘‘4053(6)’’. J of chapter 1 of the 1986 Code is amended by ending on the last day of the second calendar (d) Paragraph (5) of section 6416(b) of the 1986 striking ‘‘Sec. 646’’ and inserting ‘‘Sec. 645’’. year following the calendar year in which such Code is amended by striking ‘‘section 4216(e)(1)’’ (c) Paragraph (1) of section 2652(b) of the 1986 transaction occurs.’’ (C) Section 408(p)(2) of the 1986 Code is each place it appears and inserting ‘‘section Code is amended by striking ‘‘section 646’’ and 4216(d)(1)’’. inserting ‘‘section 645’’. amended— (e) Paragraph (3) of section 6427(f) of the 1986 (d) Paragraph (3) of section 1(g) of the 1986 (i) by striking ‘‘the preceding sentence shall Code is amended by striking ‘‘, (e),’’. Code is amended by striking subparagraph (C) apply only in accordance with rules similar to and by redesignating subparagraph (D) as sub- the rules of section 410(b)(6)(C)(i)’’ in the last (f)(1) Section 6427 of the 1986 Code, as amend- paragraph (C). sentence of subparagraph (C)(i)(II) and insert- ed by paragraph (2), is amended by redesignat- (e) Section 641 of the 1986 Code is amended by ing ‘‘the preceding sentence shall not apply’’, ing subsections (n), (p), (q), and (r) as sub- striking subsection (c) and by redesignating sub- and sections (m), (n), (o), and (p), respectively. section (d) as subsection (c). (ii) by striking clause (iii) of subparagraph (2) Paragraphs (1) and (2)(A) of section 6427(i) (f) Paragraph (4) of section 1361(e) of the 1986 (D). of the 1986 Code are each amended by striking Code is amended by striking ‘‘section 641(d)’’ (2) AMENDMENT TO SECTION 1601(d)(4).—Section ‘‘(q)’’ and inserting ‘‘(o)’’. and inserting ‘‘section 641(c)’’. 1601(d)(4)(A) of the 1997 Act is amended— (g) Subsection (e) of section 9502 of the 1986 (g) Subparagraph (A) of section 6103(e)(1) of (A) by striking ‘‘Section 403(b)(11)’’ and in- Code is amended to read as follows: the 1986 Code is amended by striking clause (ii) serting ‘‘Paragraphs (7)(A)(ii) and (11) of sec- ‘‘(e) CERTAIN TAXES ON ALCOHOL MIXTURES and by redesignating clauses (iii) and (iv) as tion 403(b)’’, and TO REMAIN IN GENERAL FUND.—For purposes of clauses (ii) and (iii), respectively. (B) by striking ‘‘403(b)(1)’’ in clause (ii) and this section, the amounts which would (but for SEC. 613. AMENDMENTS RELATED TO TITLE XIV inserting ‘‘403(b)(10)’’. this subsection) be required to be appropriated OF 1997 ACT. (b) AMENDMENT RELATED TO SECTION under subparagraphs (A), (C), and (D) of sub- (a) AMENDMENT RELATED TO SECTION 1434 OF 1601(f)(4) OF 1997 ACT.—Subsection (d) of section section (b)(1) shall be reduced by— 1997 ACT.—Paragraph (2) of section 4052(f) of 6427 of the 1986 Code is amended— ‘‘(1) 0.6 cent per gallon in the case of taxes im- the 1986 Code is amended by striking ‘‘this sec- (1) by striking ‘‘HELICOPTERS’’ in the heading posed on any mixture at least 10 percent of tion’’ and inserting ‘‘such section’’. and inserting ‘‘OTHER AIRCRAFT USES’’, and which is alcohol (as defined in section (b) AMENDMENT RELATED TO SECTION 1436 OF (2) by inserting ‘‘or a fixed-wing aircraft’’ 4081(c)(3)) if any portion of such alcohol is etha- 1997 ACT.—Paragraph (2) of section 4091(a) of after ‘‘helicopter’’. nol, and H10022 CONGRESSIONAL RECORD — HOUSE November 5, 1997 ‘‘(2) 0.67 cent per gallon in the case of fuel Mr. Speaker, I rise in support of H.R. to bring a bill to the floor that hardly used in producing a mixture described in para- 2676. I rise in strong support because of has controversy. graph (1).’’ the bipartisan nature of the solution of (h)(1) Clause (i) of section 9503(c)(2)(A) of the Mr. Speaker, I reserve the balance of 1986 Code is amended by adding ‘‘and’’ at the a very serious problem that our Nation my time. end of subclause (II), by striking subclause (III), faces with the Internal Revenue Serv- Mr. ARCHER. Mr. Speaker, I yield and by redesignating subclause (IV) as sub- ice. I do not think anyone can deny myself such time as I may consume. that we are basically dealing with a clause (III). Mr. Speaker, the bill we vote on (2) Clause (ii) of such section is amended by group of dedicated people that do a today will give David, the taxpayer, a striking ‘‘gasoline, special fuels, and lubricating very difficult job, but a very complex bigger slingshot to use against the IRS oil’’ each place it appears and inserting ‘‘fuel’’. Tax Code that we have given to them. (i) The amendments made by this section shall Goliath. But as proud as I am of this Yet, out of all of this, for whatever rea- take effect on the date of the enactment of this bill, it is just the beginning. Reforming sons, we were able to see vividly during Act. the IRS is a very important first step, the Senate hearings how certain people SEC. 620. EFFECTIVE DATE. but the real culprit behind the scenes in that Service, probably because of Except as otherwise provided in this title, the is the complexities of the current In- lack of direction and governance, were amendments made by this title shall take effect ternal Revenue Code. as if included in the provisions of the Taxpayer abusing American taxpayers. Relief Act of 1997 to which they relate. Prior to this time there is no ques- What America needs is a new tax sys- The SPEAKER pro tempore. The gen- tion that people in the tax-writing tem, one that is fairer, simpler, less in- trusive, less costly, and one that cre- tleman from Kentucky [Mr. BUNNING] committee, which has the responsibil- and the gentleman from New York [Mr. ity for oversight, was moving towards ates more economic growth for the American people, because that is what RANGEL] each will control 1 hour. reform. But it was the restructuring The Chair recognizes the gentleman commission that the gentleman from determines the size of the paychecks from Kentucky [Mr. BUNNING]. California [Mr. MATSUI] and the gen- that families receive in this country. That is the American dream. GENERAL LEAVE tleman from Maryland [Mr. CARDIN] Mr. BUNNING. Mr. Speaker, I ask and the gentleman from Ohio [Mr. Actually, I should say, not just less unanimous consent that all Members PORTMAN] sat on that actually wrestled intrusive. We should have a Tax Code may have 5 legislative days within with it, took testimony, and came up that gets the IRS completely and to- which to revise and extend their re- with ways in which we could enjoy the tally out of the lives of every individ- marks and include extraneous material expertise of the private sector and ual American. I believe we must rip the on H.R. 2676. bring some balance, not only in terms income tax out by its roots and throw The SPEAKER pro tempore. Is there of technology, but in terms of better it away, so it can never grow back. objection to the request of the gen- protecting the taxpayer. As helpful as this legislation will be tleman from Kentucky? Mr. Speaker, the gentleman from to taxpayers struggling with the IRS, I There was no objection. California [Mr. MATSUI] was replaced personally will not be satisfied until Mr. BUNNING. Mr. Speaker, I yield by Congressman Cohen, and they were the tax system itself is repealed. But myself 2 minutes. able to work together with the admin- until that great day comes, this bill Mr. Speaker, I rise in support of the istration and come up with a bill. will be a valuable helping hand to mil- IRS reform bill. It is no secret the IRS There are some that have said that the lions of taxpayers who need and de- is out of control. When agents testified administration came to this reform po- serve a stronger slingshot. before Congress in hoods out of fear of sition screaming and scratching and This bill does three things to protect reprisal, and when honest taxpayers crying, but the truth of the matter is taxpayers in their dealings with the are hounded into bankruptcy, it is time there were many objections in the bill, IRS: No. 1, in America, criminals are for the Congress to step in and say, and these corrections were made by Re- innocent until proven guilty, but tax- enough is enough. publicans and Democrats. We come payers do not receive the same benefit The bill before us today puts some forth with a bill that is not only work- of the doubt. This legislation shifts the commonsense boundaries around the able, but desired today. burden of proof in court proceedings IRS. By setting up an oversight board Let me say on this House floor, from the taxpayer to the IRS. No of private sector experts, we force this which I have said about the chairman, longer will taxpayers have to prove be- service to move forward into the 21st the gentleman from Texas [Mr. AR- yond the burden of credible evidence century. Considering how the IRS has CHER] before, that Chairman ARCHER that they are innocent. As a result, wasted billions on modernizing its had the opportunity to bring that same taxpayers will benefit from more favor- computers, and that the year 2000 com- type of a show to the House of Rep- able settlements, even before they ever puter disaster creeps closer every day, resentatives, to bring a response to an get to court. the oversight board is incredibly im- emotional situation, which indeed The gentleman from Ohio [Mr. TRAFI- portant. Members of Congress and the whole CANT], like Paul Revere riding in the By forcing the IRS, and not the tax- country saw. night, he was the one to first sound the payer, to carry the burden of proof in Instead of doing that, he allowed alarm about the burden of proof. Now disputes, we protect legal, law-abiding Members working on this bill to work change is coming, and the gentleman citizens and end harassing and frivo- their will in a bipartisan way and made from Ohio [Mr. TRAFICANT] deserves lous claims by maverick agents. By contributions to perfect the bill, and our thanks. strengthening the confidentiality worked to bring together Democrats rules, we make it easier for taxpayers and Republicans, not with a workable No. 2, we create 28 new taxpayer to get professional advice about their bill, but with a desired bill. I think it rights, including the right to sue the returns without having to worry about is not only a credit to him, but a credit IRS for damages caused by negligence being tripped up by legal tricks. to the full committee, that we send no- of the IRS employees in the collection Mr. Speaker, I think many people tice to the Internal Revenue Service process. We make it easier for a tax- have forgotten that the ‘‘S’’ in IRS that we expect better performance, we payer to recover legal fees and costs stands for ‘‘service,’’ government serv- expect to provide the oversight, but we when the IRS is wrong. We pay 4 mil- icing the taxpayers, not the other way do not expect to do it at the expense of lion taxpayers higher refunds when the around. By passing this bill today, we the individual workers who are dedi- IRS holds up their check, plus we pro- remind the IRS of its proper role, and cated. tect thousands of innocent spouses, about just who is in charge in America: So I support this, and I particularly often divorced women, so they are less The taxpayer. want to pay tribute to the gentleman likely to be punished by the IRS for Mr. Speaker, I urge support of the from Maryland [Mr. CARDIN] and the mistakes made on their joint returns bill, and I reserve the balance of my gentleman from Ohio [Mr. PORTMAN], by their former spouses. time. who worked with the administration We, for the first time, make the IRS Mr. RANGEL. Mr. Speaker, I yield and the leadership in the House, as well responsible for any rules that they give myself such time as I may consume. as the Committee on Ways and Means, in writing to taxpayers. Taxpayers now November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10023 will be able to rely on anything in role that she played. I appreciate the the past. At the same time, the IRS writing that they receive from the IRS. role Mr. Kies in the staff did in keeping must become a more efficient agency We remove any suspicion that poli- us focused on getting our job done. in enforcing laws against those who tics will be allowed to enter audit deci- There is a lot of credit that should be seek to escape their legal obligations. sions, because we make it a felony for shared in this legislation. Mr. Speaker, the IRS is charged with any Cabinet-level official, including The legislation before us marks the the vital task of collecting revenues the President and the Vice President, first fundamental reform in the IRS in needed to fund the basic and essential to direct the IRS to audit or terminate nearly a half a century. The problems operations of Government. When the an audit for any particular taxpayer. of the IRS are familiar: billions of dol- IRS is mismanaged in the way that it No. 3, if the Department of the Treas- lars squandered on a bungled computer creates fear and anxiety among tax- ury could have fixed the IRS, they modernization effort, telephones unan- payers, the result is to undermine the would have done so a long time ago. So swered, taxpayers too often treated confidence of the American people in our bill creates an independent over- with disrespect or suspicion. their Government. The purpose of this sight board that includes nongovern- These problems have not emerged re- legislation is to reform the IRS so that mental experts who can bring new cently. They are not the legacy of one we can begin to restore that badly thinking and a more taxpayer-oriented administration, but of decades. These damaged confidence. culture to the IRS. Like a breath of are not the problems of individual em- Today, this body will act in time for fresh air, this board will have real ployees. In fact, the employees of the the next tax season. The legislation power and authority to change the di- IRS have come forward to help us un- has the support of the administration. rection of the IRS. No more will we be derstand the problem, and they have I hope the other body will follow the told, you appropriated $4 billion for a helped us craft a solution today. leadership of this House and enact new computer system, but it does not This administration, and particularly meaningful IRS reform in order to help work. That is intolerable. Secretary Rubin, have been more at- the taxpayers of this Nation. Mr. Speaker, the protections pro- tentive to the problems of the IRS and Mr. Speaker, I rise in strong support of H.R. vided in this bill go a long way to help- more dedicated to seeking solutions 2676, the Internal Revenue Service Restruc- ing solve peoples’ worst problems with than any in recent years. Secretary turing Act of 1997. This bipartisan legislation the IRS, but as long as our Nation Rubin has made important changes in to reform the Internal Revenue Service builds taxes its citizens on the basis of in- the management of the IRS, and those on the recommendations of the National Com- come, it will be impossible to com- efforts have begun to show results. But mission on Restructuring the IRS, which was pletely fix the IRS. This bill is a strong much more remains to be done. chaired by our colleague, Representative helping hand, and it is long overdue, Congressional action is needed in PORTMAN and Senator KERREY. but the mission will not be complete order to ensure that the reforms of the I am very proud to have joined Representa- until the taxpayers are protected and IRS do not depend on any particular tive PORTMAN in cosponsoring H.R. 2292, the IRS becomes nonexistent in the in- individual or administration. The solu- which has had strong bipartisan support in this dividual lives of all Americans. I look tion proposed in this bill is the cre- House. Chairman ARCHER and the Ways and forward to that day. ation of an oversight board that will Means Committee took that very good bill and Mr. Speaker, I reserve the balance of bring private sector expertise in the made it better. With strong support in this my time. areas where the IRS needs it the most. House and from the President, this bill should Mr. RANGEL. Mr. Speaker, I yield 5 The creation of this board, with a real move quickly to enactment. minutes to the gentleman from Mary- role in the planning and oversight of The legislation before us marks the first fun- land [Mr. CARDIN]. the strategic plans for major reorga- damental reform of the IRS in nearly half a Mr. CARDIN. Mr. Speaker, I rise in nizations in the budget of the IRS, is century. It will bring a new structure to the strong support of H.R. 2676, the Inter- the most important element in bring- IRS, a structure that is designed to change the nal Revenue Service Restructuring Act ing reform to this troubled agency. The way the IRS treats its customers, the Amer- of 1997. This bipartisan legislation to board is a permanent entity that will ican taxpayers. reform the IRS builds on work of the provide continuing oversight for the The problems at the IRS are familiarÐbil- National Commission on Restructuring IRS. lions of dollars squandered on a bungled com- the IRS, which was chaired by our col- puter modernization effort, telephones unan- b 1200 league, the gentleman from Ohio, [Mr. swered, taxpayers too often treated with dis- ROB PORTMAN], and Senator KERREY. IRS reform requires not just a new respect or suspicion. These problems have I particularly want to congratulate management structure involving a not emerged recentlyÐthey are not the legacy the gentleman from Ohio, [Mr. ROB partnership between the board, the of one administration, but of decades. These PORTMAN], for the leadership he has Secretary, and the Commissioner, it are not the problems of individual employees. shown throughout this period in keep- will also require improved performance In fact, the employees of the IRS have come ing us focused on our objective to bring by those of us in Congress. Over the forward to help us understand the problem, about a bill that could not only pass, long run, we cannot build an IRS that and they have helped us craft the solution but be signed into law. He did a great serves the American people unless we today. job, and I congratulate him on that ef- write a Tax Code that the IRS can ex- This administration, and particularly Sec- fort. I am very proud to have joined the plain and the people can understand. retary Rubin, has been more attentive to the gentleman from Ohio in cosponsoring This bill takes the first step toward problems of the IRS and more dedicated in H.R. 2292, which has a strong bipartisan tax reform. The bill does not reform seeking solutions than any in recent years. support in this House. our Tax Code but reforms the way we Secretary Rubin has made important changes Chairman Archer and the Committee collect revenues. Reform of the prac- in the management of the IRS, and those ef- on Ways and Means took a very good tices of the IRS will make it easier for forts have begun to show results. bill and made it better. With the strong us to concentrate on the underlying But much more remains to be done. Con- support in this House and from the problems in the Tax Code itself. gressional action is needed in order to ensure President, this bill should be quickly Our tax system is based on voluntary that reform at the IRS does not depend on enacted. compliance. More than 80 percent of any particular individual or administration. I also want to acknowledge the work Americans pay their taxes without dis- The solution proposed in this bill is the cre- the gentleman from New York [Mr. pute. An IRS that can answer taxpayer ation of an oversight board that will bring pri- RANGEL] and the gentleman from Penn- phone calls and provide accurate, reli- vate sector expertise in the areas where the sylvania [Mr. COYNE] did on our side of able information will help us increase IRS needs it most. The creation of this board, the aisle, keeping us focused on getting voluntary compliance. For the over- with a real role in the planning and oversight a bill that could enjoy bipartisan sup- whelming majority of Americans who of the strategic plans, major reorganizations, port. abide by the law and pay their taxes, and the budgets of the IRS, is a most impor- I thank the gentlewoman from Con- the IRS should stand for information, tant element in bringing reform to this troubled necticut [Mrs. JOHNSON], the chairman respect, and service. Abuse of collec- agency. The board is a permanent entity that of the Oversight Committee, for the tion practices must become a thing of will provide continuing oversight of the IRS. H10024 CONGRESSIONAL RECORD — HOUSE November 5, 1997 IRS reform requires not just a new manage- the IRS needs to be reformed. Each and Recent hearings in the Senate have ment structure, involving a partnership be- every one of us provides case work to only confirmed what millions of Amer- tween the board, the Secretary, and the Com- our constituents, and we have all heard icans have always known, the IRS is missioner. It will also require improved per- the numerous, tragic horror stories outdated, out of touch, and out of con- formance by those of us in Congress. about how the IRS has unfairly treated trol. Today we can bring to a vote two Legislative oversight of the IRS is too honest, hard-working taxpayers. I simple changes to the way the IRS does unfocused, with too many masters and not could go on and on and enumerate business. These are not radical enough coordination among committees. The those stories, but I do not have to; we changes. They are reasonable steps to- bill attempts to bring some order and structure have all heard the same ones. ward accountability and fairness. to the current system. Over the long run, we Mr. Speaker, no one here is claiming First, this bill will put an oversight can't build an IRS that serves the American that H.R. 2676 is a panacea for our ail- board of citizens in charge of reviewing people unless we write a Tax Code that the ing tax system. It does not abolish the the IRS. In our system of checks and IRS can explain and the people can under- IRS or scrap the Tax Code, as many of balances, this is a much needed and stand. our constituents would like. But until long overdue check on the IRS. This bill takes the first step toward tax re- we do that, and we will do that, this Second, this bill will bring the IRS form. The bill does not reform our Tax Code, bill takes a step toward installing a into the American way of dealing with but it reforms the way we collect revenues. modicum of fairness into a system for the American people. We all know that Reform of the practices of the IRS will make those who are simply forced to comply our criminal justice system tries to en- it easier for us to concentrate on the underly- with the Tax Code’s painful provisions. sure fairness by represuming that the ing problems in the Tax Code itself. Mr. ARCHER. Mr. Speaker, I yield accused are innocent until proven A big part of the problem with the IRS is the such time as he may consume to the guilty, so why is it the IRS files agency's inability to provide taxpayers with ac- gentleman from Michigan [Mr. CAMP]. charges against you or your company, curate information regarding their tax status. (Mr. CAMP asked and was given per- you are considered guilty until proven This simply has to stop, and this bill will help. mission to revise and extend his re- innocent? In other words, a common Our tax system is based on voluntary com- marks.) criminal is presumed innocent until pliance. More than 80 percent of Americans Mr. CAMP. Mr. Speaker, I rise in strong proven guilty when he has his day in pay their taxes without dispute. An IRS that support of H.R. 2676, the Internal Revenue court but the rest of us are guilty until can answer taxpayer's phone calls, and pro- Service Restructuring and Reform Act of 1997. proven innocent in Tax Court. Today vide accurate, reliable information, will help in- Our bill boils down to one simple factÐthe we can change this, Mr. Speaker. Let crease voluntary compliance. taxpayer should be treated like a customer, us give the taxpayers the benefit of the For the overwhelming majority of Ameri- not a criminal. Shouldn't a customer be able to doubt and the tax collectors the burden cans, who abide by the law and pay their expect an answer from a telephone hotline? of proof. taxes, the IRS should stand for ``Information, Well, the General Accounting Office found that Mr. ARCHER. Mr. Speaker, I yield 2 Respect, and Service.'' Abusive collection in 1996, only 21 percent of calls to the IRS minutes to the gentleman from Penn- practices must become a thing of the past. At were even answered. One-half of the 22 per- sylvania [Mr. ENGLISH], a respected the same time, the IRS must become a more cent error rate on paper 1040 forms is due to member of the Committee on Ways and effective agency at enforcing the law against IRS employee errorÐIRS employees inputting Means. those who seek to escape their legal obliga- the wrong numbers and data. If the IRS were Mr. ENGLISH of Pennsylvania. Mr. tions. a private company, it would have gone bank- Speaker, I thank the chairman for In addition to the governance and oversight rupt years ago. H.R. 2676 is an important first yielding me the time. provisions, the bill contains a new set of provi- step in reforming our tax system. It focuses on sions to be added to the Taxpayer Bill of It is stunning, but the IRS is the only three things: first, we shift the burden of proof place in the American system of law Rights. The provisions address many prob- to the IRS. In the United States, you're consid- where a citizen is guilty until proven lems that taxpayers have encountered in deal- ered innocent until proven guilty. But not with innocent. Traditionally, the taxpayer, ing with the IRS, and their enactment will help the IRSÐthe taxpayer bears the burden of when notified by the IRS that his tax solve those problems. proving himself innocent. Our bill changes payments failed, in their view, to sat- I would add, however, that the broader ob- that. jective of this bill must be to change the cul- Second, we give taxpayers the right to sue isfy his tax obligation, carried the bur- ture of the IRS to make it a taxpayer-friendly the IRS for damages caused by negligence, den of proof in demonstrating that his organization so that future Taxpayer Bills of and other important rights like protections for tax payment is accurate. The presump- Rights will not be necessary. an innocent spouse whose ex-husband or ex- tion is for the IRS and against the tax- Mr. Speaker, the Internal Revenue Service wife engaged in tax abuse. Finally, we bring payer. In my view, this is just plain is charged with the vital task of collecting the new thinking and a more customer-oriented wrong. revenue needed to fund the basic and essen- culture to the IRS, with a private board to give This legislation addresses that issue. tial operations of Government. When the IRS direction and leadership to the IRS. This legislation, which is based on the is mismanaged in ways that create fear and The bill we are debating today is the first recommendations of the Committee on anxiety among taxpayers, the result is to un- step. The bigger problem is a tax code gone Ways and Means, Subcommittee on dermine the confidence of the American peo- wild, full of complexity and ambiguity. That tax Oversight, creates 28 new taxpayer ple in their Government. The purpose of this code, with over 17,000 pages of IRS laws and rights essential to restoring to the in- legislation is to reform the IRS so that we can regulations, leads to many of the problems the dividuals a sense of fairness in their begin to restore that badly damaged con- IRS faces today. With 480 tax forms and 280 dealings with the IRS. In my view, the fidence. forms to explain the forms, its no wonder the most important of these is a shift in Mr. ARCHER. Mr. Speaker, I yield 1 taxpayer is often confused. Businesses spend the burden of proof from the taxpayer minute to the gentlewoman from Ohio on average each year 3.6 billion manhours fill- to the IRS in any court proceedings [Ms. PRYCE]. ing out and complying with tax forms. Amer- where factual information is disputed. Ms. PRYCE of Ohio. Mr. Speaker, I ican individuals spend 1.8 billion hours filling Let me be clear about this. The tax- thank the chairman for yielding me out tax forms. That is simply unacceptable. I payer is still required to cooperate. this time. look forward to continuing our work of reform- The taxpayer is still required to pro- I rise in strong support of this bill. I ing our tax system. vide the information which is in the congratulate the chairman, and I con- Mr. ARCHER. Mr. Speaker, I yield 1 taxpayer’s control. But those tax- gratulate also my colleague, the gen- minute to the gentlewoman from Texas payers who do cooperate and who pro- tleman from Ohio [Mr. PORTMAN], for [Ms. GRANGER]. vide all the necessary information see all the hard work and dedication that Ms. GRANGER. Mr. Speaker, I rise a shift back in an appropriate way in he has brought to this issue and, with today in strong support of the IRS Re- the burden of proof. From my stand- him, the gentleman from Ohio [Mr. structuring and Reform Act of 1997. point, this will dramatically restore TRAFICANT] who has long championed This simple proposal will help make fairness in this situation. this cause and kept our feet to the fire. the IRS more efficient in its operations Also, H.R. 2676 creates an independ- It should not be difficult to convince and more accountable to its boss, the ent citizen board to hold the IRS ac- any of my colleagues in this body that people. countable for change. The IRS sees a November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10025 variety of new taxpayer rights, includ- Mr. PORTMAN. Mr. Speaker, I yield one day unannounced, requested of me ing a right to sue the IRS for neg- 1 minute to the gentleman from South to write out a check for $2,000, wanted ligence, a right to know when you are Dakota [Mr. THUNE]. a copy of the form that I filed with the being audited and why, and expanded Mr. THUNE. Mr. Speaker, I want to IRS. And I grabbed all my papers, I put rights for citizen spouses. thank the chairman of the full com- them all together, and I felt awkward This legislation is so important to mittee and the gentleman from Ohio in front of all my employees, he said, I move us forward to change the system, [Mr. PORTMAN] for the hard work that had to go down to the IRS office. to change the IRS in a way that I think they have done on this important When I got down there, I showed is very fundamental. I support this leg- issue. them a copy of the form that I had islation. I am excited about it. I appre- When this first started being debated, filed on time, I showed them a copy of ciate the chance, Mr. Speaker, to rise a lot of the liberal cynics out there the check that I had paid with their in support of it. said that it is just one of those things stamp on the back side, yet they went Mr. RANGEL. Mr. Speaker, I yield 2 that the Republican leadership is doing through that entire record. I felt like a minutes to the gentleman from Texas to drum up support among their base. criminal when I was simply just trying [Mr. GREEN]. Then they started hearing the stories, to do business the proper way and pay (Mr. GREEN asked and was given and as more and more of the stories un- my taxes on time. permission to revise and extend his re- folded, people started believing we This bill will change that. This will marks.) have a problem in this country with re- make sure that the honest citizen, the Mr. GREEN. Mr. Speaker, I thank spect to the IRS. citizen that is out there, is going to my ranking member of the Committee This is a first bold, dramatic step, I have a fair chance. It will not give up on Ways and Means, not only for the think, in what I hope will be a long any of the rights that they presently time this morning but also for the ef- journey that will end up with reform- have under the present jurist system, fort on this piece of legislation. I know ing the Tax Code, which is at the crux and it will give them the kind of re- it is a very bipartisan piece of legisla- of what our problem is in this country. form that we need, not because we are tion because about 2 weeks ago the But this proposal today makes impor- Democrats or Republicans but because President agreed to sign onto it. Even tant reforms that, for the first time in we are honest people that believe in before that, there were a lot of Demo- 45 years, we are doing something to re- paying our taxes, but we also believe crats who were interested in the issue, form the IRS and giving citizens, the we should have a fair shake. particularly shifting of the burden of people who have to pay the taxes, more I applaud the ranking member. I ap- proof, cosponsors of a bill by a Demo- input into this process. plaud the chairman. This is long over- cratic Member, our colleague, the gen- I think it is an important, as I said, due. This is something we all should tleman from Ohio [Mr. TRAFICANT]. first step which allows for more input support. I encourage the support of all The bill is a good effort because, one, at the grass roots level for the people my colleagues. it transfers the burden of proof to the who have to abide by the tax laws that Mr. PORTMAN. Mr. Speaker, I yield IRS and again makes it fair for the we make in this country. I hope it will 2 minutes to the gentleman from Geor- taxpayer that they would know, going be the first step in what will be a long gia [Mr. COLLINS], a colleague of mine into the Tax Court, that the IRS has to journey toward reforming the Tax Code on the Committee on Ways and Means. show that someone is actually violat- in this country. I am delighted to see b 1215 ing the law on taxes. the bipartisan support for this. I think Also, I think it is important because that we will pass it with a huge vote Mr. COLLINS. Mr. Speaker, I thank the President will continue the ap- and hopefully get on with the business my colleague the gentleman from Ohio pointment of the commissioner. Even of reforming the Tax Code. [Mr. PORTMAN] for yielding me this though we have an advisory board with Mr. RANGEL. Mr. Speaker, I yield 2 time and for his hard work in this area some authority, we need to have an minutes to the gentleman from Rhode of restructuring the IRS. elected official. With the President Island [Mr. WEYGAND]. Since being in Congress for the last 5 being the one that does it with author- (Mr. WEYGAND asked and was given years, I have had a lot of inquiries from ity over the IRS, we do not need to del- permission to revise and extend his re- constituencies about problems they egate that to an appointed board be- marks.) have had and told me about experi- cause so often in any level of govern- Mr. WEYGAND. Mr. Speaker, I want ences they have had with IRS. Just re- ment, whether it be Federal, State, or to thank our ranking member, the gen- cently, I held a townhall meeting in even local government, the elected offi- tleman from New York [Mr. RANGEL], Columbus, GA, where we invited in cial needs to have the final version, the and the gentleman from Ohio [Mr. some of the constituency to talk about buck stops at the office of the Presi- PORTMAN], and the chairman of the some of their personal experiences and dent. And I think this is good because Committee on Ways and Means for also to have some input and ideas as to it leaves that authority in appointing bringing this before us. how they felt like the IRS could better the IRS commissioner with the White As a Democrat and as a former small handle their situation. House and with the person, whoever business owner, I can tell my col- It was a very enlightening townhall the President may be. That is impor- leagues, the people that are out there meeting, one of the best we ever held. tant. for this kind of reform are begging for But it was also one that did not come I think because of the hearings in the this reform. This is a wonderful, very to bash the IRS, it just came with Senate last week or over the last 2 prospective, very proactive kind of leg- ideas and experiences and some sugges- weeks, again, it is not something new. islation that will help many people. tions. We even had an accountant in I know the gentleman from Texas [Mr. I remember many of my colleagues in that talked about the IRS, and not in a ARCHER] knows it, a long time member the small business community talking bad way, but in a way that he felt of the Committee on Ways and Means, about the problems they had with the would be constructive as we put to- knows that this issue will, if we ad- IRS. These are people that are solid gether this bill to restructure the IRS. dress it today, 2 years from now we citizens, people that are paying their Also, he mentioned the complexity of may have to do it again. That is the taxes and that, when an IRS agent tax codes and how the complexity of way Government works. We try and walks into their office, all of a sudden the tax codes also is causing a lot of correct problems now, and we will fix they become guilty without ever hav- problems, not only for our constitu- them again if we have to, whether it be ing a chance to prove their innocence. ency, but also for the Service itself next year or the year after. They have to go out there and actually that has to administer the collection of That is why Congress is in session, to reverse what we have considered for funds that we use to operate this Gov- correct problems for the people that we many years the basics of the United ernment. represent. That is why I think this bill States justice system, and that is, you We are taking this from the top is a good bill. I hope we can pass it are innocent until proven guilty. down, looking at the management of both through the House and Senate and One small business owner came to me the IRS and how the management is get it signed by the President. and said, an agent came into my office structured. Hopefully, that will have a H10026 CONGRESSIONAL RECORD — HOUSE November 5, 1997 change in attitude all the way through aware of the problems at this agency. As a sible. Clearly, there have been problems at the Service, all the way down to those member of the House and Ways and Means this agency, but it is important to point out that who answer the telephone, oftentimes Committee, I had sat through many hearings the IRS Restructuring Commission found no after going through long steps of dif- on IRS reform over the years. There was, in evidence suggesting that those abusive prac- ferent types of answering services to fact, a very broad consensus among Ways tices were widespreadÐor even very com- get to a real live person to talk to. and Means Committee members and mem- mon. But we have hopes that that attitude bers of the IRS Restructuring Commission on The IRS is responsible for enforcing the will change and that our constituency the need for significant changes in IRS oper- compliance of more than 100 million taxpayers will be better handled and better ations and management. with a complex Tax Code. The agency proc- served through our representatives at We all agreed on the need for greater flexi- esses over 200 million forms a year and ad- the IRS. Also, as mentioned by several bility linked with greater accountability, as well ministers gross receipts of roughly $11¤2 tril- people who were not at the meeting but as greater reliance on outside sources of ex- lion. The congressional hearings on IRS have spoken to me personally about pertise and technological know-how. The vast abuses produced 2,000 claims of IRS ex- the IRS and about the employee and majority of the Commission's recommenda- cesses nationwide. While no abuse is accept- the attitude and structure comes the tions reflected this broad consensus. able, I think that we need to look at these suggestion that we also need to look at There was disagreement among Commis- cases in the context of the agency's overall how we hire, the hiring practices at the sion members, however, about one rec- performance, which is impressive. Our income IRS, as well as other areas of the Gov- ommendation in particularÐwhether an over- tax system relies on voluntary compliance. ernment, and that we hire people who sight board composed primarily of private sec- Our compliance rate is over 80 percent. We are competent, who are dedicated to tor appointees should be given substantial have the lowest effective tax rate of any of the serving the individuals in the constitu- control over the agency and the IRS Commis- major industrialized nations. I think that those ency and not just hiring people to fill sioner. The majority of Commission members facts should be considered as well. slots. supported creating a board of directors that Finally, to the extent that the IRS went too I fully support restructuring the IRS. would have the authority to hire and fire the far in certain cases in seeking to maximize Mr. RANGEL. Mr. Speaker, I yield 2 IRS Commissioner, and which would approve revenue, we should not place all of the blame minutes to the gentleman from Penn- the agency's budget and strategic plans. A on the IRS. Congress has, in no small way, sylvania [Mr. COYNE], who served on number of Commission members, myself in- pressured the IRS to maximize revenuesÐand the IRS restructuring committee. He cluded, thought that such a change would Congress has insisted that IRS adopt the has made such a great contribution to have the unintended effect of actually reducing types of performance measures that appar- getting this bill to the floor. the accountability of the IRS. We also believed (Mr. COYNE asked and was given per- ently drove IRS field offices to excess in cer- that investing the authority over the IRS budg- mission to revise and extend his re- tain circumstances. In the end, Congress must marks.) et and strategic planning in a board dominated tell the IRS how it should balance the often Mr. COYNE. Mr. Speaker, I rise by private sector individuals could raise seri- competing concerns of productivity and fair- today in support of this legislation, ous questions about conflicts of interest be- ness. which will make important reforms in tween board members public responsibilities I want to commend Secretary Rubin and the operation and management of the and their private sector employers' interests. Representatives PORTMAN, JOHNSON, and Internal Revenue Service. As the legislation introduced by Senator RANGEL for all of their hard work on this legis- There is broad consensus on the need KERREY and Representative PORTMAN, which lation over the last few months. I believe that for significant changes in the IRS oper- reflected the Commission's recommendations, if this bill is enacted, taxpayers will experience ation and management. The vast ma- was considered by the Ways and Means a fairer, more efficient, and more responsive jority of the provisions of the McCrery- Committee, public discussion of this bill fo- IRS in the coming years. Portman-Cardin bill are noncontrover- cused on this one controversial provision in I urge my colleagues to support H.R. 2676. sial. There has been disagreement, the billÐthe issue of what authority the over- Mr. PORTMAN. Mr. Speaker, I yield however, about one provision in an ear- sight board should have. The vast majority of 2 minutes to the gentleman from Lou- lier version of this bill, and that is the provisions in the Kerrey-Portman bill were isiana [Mr. MCCRERY], a member of the whether an oversight board composed noncontroversial. Committee on Ways and Means. primarily of private sector appointees Negotiations between the administration and (Mr. MCCRERY asked and was given should be given substantial control Congress on the powers of the oversight permission to revise and extend his re- over the agency and the IRS Commis- board continued almost until the Ways and marks.) sioner, himself or herself. Means Committee markup of this bill began, Mr. MCCRERY. Mr. Speaker, I rise Negotiations between the adminis- but these negotiations eventually produced a today to do two things. No. 1, praise tration and Congress over the past few compromise in which the President retained the IRS Reform Act that we will pass months produced a compromise in the authority to appoint and fire the IRS Com- today; and No. 2, tell my colleagues which the President retained the au- missioner, and in which the oversight board and the country that, while this is cer- thority to appoint and fire the IRS and the administration would each submit an tainly a good bill, it will offer only Commissioner and in which the over- IRS budget to Congress. As a result of these slight relief from the burden that the sight board and the administration changes, H.R. 2676 was reported out of the real culprit, our Tax Code, places on would each submit an IRS budget to Ways and Means Committee with broad bipar- our people and their work. Congress. tisan support. First the praise. This is indeed an ex- As a result of these changes, H.R. I believe that enactment of this legislation cellent piece of legislation constructed 2676 was reported out of the Committee will improve IRS operations and management by two of the most able members of the on Ways and Means with broad biparti- significantly. The bill contains a number of im- Committee on Ways and Means, the san support. I want to commend Sec- portant provisions, including language expand- gentleman from Ohio [Mr. PORTMAN] retary Rubin and the members of the ing congressional oversight and measures in- and the gentleman from Maryland [Mr. Committee on Ways and Means for all tended to promote electronic filing of tax re- CARDIN], and the gentleman from Texas of their hard work on legislation over turns over the next 10 years. The bill also in- [Mr. ARCHER], our excellent chairman. the past few months. cludes a taxpayers' bill of rights section which This legislation will make the IRS I believe that this bill, if enacted, contains a number of provisions to prevent or more accountable by creating an inde- taxpayers will experience a fairer, discourage abusive behavior by IRS employ- pendent oversight board. It would also more efficient and more responsive IRS ees, to clarify and codify the protections avail- establish several important taxpayer in the coming years. I urge support for able to taxpayers in proceedings with the IRS, rights, such as the ability to sue for H.R. 2676. and to provide relief for innocent spouses of legal fees when the IRS is wrong and Mr. Speaker, I rise today in support of this tax cheats. shift the burden of proof in tax court legislation, which will make important reforms In closing I want to make one additional from the taxpayer to the IRS. Finally, in the operation and management of the Inter- point. In the course of debate over this legisla- this legislation includes measures to nal Revenue Service. tion, many Members have succumbed to the ease the transition to electronic filing When I was appointed to the National Com- temptation to bash the IRS. I think that such of taxes, thus relieving some of the mission on Restructuring the IRS, I was well attacks are unfair, inappropriate, and irrespon- burden on small businesses. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10027 Mr. Speaker, the admonition is that the nature of the work the IRS per- I rise today in support of this bill to this is not enough. As long as we have forms, but we can change the approach. reform the IRS service. I want to the complex Tax Code that we have, no The IRS has not been reformed in thank my friend the gentleman from amount of IRS reform will be sufficient over 40 years. Currently, it seems to New York [Mr. RANGEL], the gentleman to relieve the costly burden of compli- many of us, that the emphasis of the from Maryland [Mr. CARDIN] and the ance. Let me share with my colleagues IRS is on collection at all costs by any gentleman from Texas [Mr. ARCHER] a few numbers. means necessary. As a result, the IRS for their leadership in this important Thirty-six. That is the number of is antiquated, less responsive, more ag- issue. times the paperwork received each gressive with a persona akin to pri- When the people of the Second Dis- year by the IRS would circle the Earth. vate-sector collection agencies. The trict of North Carolina sent me to this Five and a half million. That is the IRS needs a makeover to reshape their body, they wanted an advocate, some- number of words in our Tax Code and image, and they need fresh, new, inno- one who would stand up for them in the the regulations. It is nearly seven vative ideas and new vision. We seek to people’s House. And I am pleased to times longer than the Bible. Five bil- do that today. support this piece of legislation on be- lion, 400 million. The number of hours We need to transform the IRS from a half of the people of my district. Work- Americans spent complying with Fed- collection agency to a taxpayer cus- ing families in North Carolina and eral tax forms. One hundred fifty-seven tomer-oriented agency which values in- across this country face enough chal- billion. That is the number of dollars dividual taxpayers and citizens and lenges in their lives without the added spent by the private sector to comply treats them with respect and dignity burden of the things we have heard with income tax laws. and not just as a number. about in recent months of certain Mr. Speaker, I am glad we are going To accomplish this, many of us be- members of the IRS who are out of con- to pass this badly needed IRS reform lieve we need to look to the private trol. If a criminal has a right to be pre- bill. It is a great piece of legislation. sector for vision and direction. This sumed innocent before the courts, so But, Mr. Speaker, we ought not to bill accomplishes that objective. Also, should the American taxpayers. leave here today thinking that we have included in the measures are an ex- The Congress has taken a strong bi- done all that needs to be done to re- panded taxpayers bill of rights, which partisan step forward in working for lieve our citizens of the crushing bur- the gentlewoman from Washington American families and can do it by en- den our current tax system places on [Ms. DUNN] and I introduced to end acting the first comprehensive reform them. That burden will not be lifted fishing expeditions, curb IRS summons of the IRS since 1952. The IRS reform authority to provide greater protection until we throw the Tax Code in the bill, H.R. 2676, is based on an aggressive for taxpayer information, and to re- trash can and start all over, until we 3-point plan, which shifts the burden of quire the IRS to demonstrate just create a fairer, simpler tax system for proof from the taxpayer to the IRS, cause to pursue an audit. everyone. Mr. Speaker, I urge support for H.R. creates 28 new taxpayer rights, and Mr. RANGEL. Mr. Speaker, I yield 2676. overhauls the management of the agen- myself 30 seconds to respond to the pre- Mr. PORTMAN. Mr. Speaker, I yield cy through the creation of an independ- vious speaker. 30 seconds to my friend, the gentleman ent board. I want to agree with him that this from Louisiana [Mr. MCCRERY]. Mr. Speaker, I would urge Members Tax Code that we have is very com- Mr. McCRERY. Mr. Speaker, I just on both sides of the aisle to move for- plicated, and I think that not only tax- want to use 30 seconds to respond to ward for the hard-working families of payers, but people on both sides of the my friend the gentleman from New America. aisle would like to do something with York [Mr. RANGEL], who pointed out Mr. PORTMAN. Mr. Speaker, I yield it. But he should be reminded that, for that Republicans have been in control 2 minutes to the gentlewoman from the last 3 years, his party really has for the last 3 years. Washington [Ms. DUNN], who added been in charge of the Tax Code. So I That is true. Democrats were in con- some valuable provisions in the tax- hope he is proud of what they have pro- trol for 40 years prior to that, and most payer rights section of this legislation. duced during these 3 years. And every of the complexity was built under their Ms. DUNN. Mr. Speaker, I must say Democrat would like to join with him tenure. However, I do hope that the we are delighted that in only 3 years of in trying to reform it. gentleman from New York [Mr. RAN- holding the majority, we have been Mr. Speaker, I yield to the gentleman GEL] will join with me and others who able to put together a bipartisan piece from Tennessee [Mr. TANNER]. agree that the Tax Code is too complex of legislation that shows real listening (Mr. TANNER asked and was given and promote overall tax reform for this to our constituents and results in up- permission to revise and extend his re- country. It is in all of our interests to grading and making much more posi- marks.) do that. tive the IRS. Mr. TANNER. Mr. Speaker, I want to Mr. RANGEL. Mr. Speaker, I yield Throughout my tenure in Congress, I thank the gentleman from Texas [Mr. myself 30 seconds. have heard from thousands of constitu- ARCHER] and the gentleman from New We are trying desperately hard to ents who have talked to me about nu- York [Mr. RANGEL] and the gentleman keep partisanship out of this. But if it merous problems they have had with from Ohio [Mr. PORTMAN] and the gen- is going to take my colleagues 37 more our system of taxation and particu- tleman from Maryland [Mr. CARDIN] years to simplify the tax system, then larly with the IRS. The theme has been and others who worked so long, and I I do not think the taxpayers are going the intrusive and sometimes abusive want to thank the gentlewoman from to get much relief. interference of the Internal Revenue Washington [Ms. DUNN] in a few min- It just seems to me that it should not System when taxpayers were only try- utes. take 3 years to get what we would want ing to be honest. But let me just say at the outset that done and it would be more like 3 One of my constituents, Mr. Speaker, the tax man has been and will continue months. So let us say next year we are was told by the IRS that his wife was to be an easy target since Biblical going to do it, we are going to come up dead even though he produced his wife times. The fact is that the function of with something and in a bipartisan and her doctor before a local IRS the IRS is necessary. Its sole purpose is way work together with the way the agent. Another constituent, a local to collect taxes. No one likes to pay gentleman from Ohio [Mr. PORTMAN] businessman, was forced to undergo a taxes, so their anger is projected upon has found so easy to work with we costly, long-lasting audit by the IRS those who do the collecting. Democrats on this bill. because of a supposed discrepancy of 65 We have to have taxes to fund the Mr. Speaker, I yield 11⁄2 minutes to cents, only to find out that the IRS vital and necessary functions of the the gentleman from North Carolina was wrong. Government, defense, interstate high- [Mr. ETHERIDGE]. This agency operates too often, Mr. ways, food inspection, public health, Mr. ETHERIDGE. Mr. Speaker, I Speaker, under the belief that tax- FAA, and other missions that only the thank my friend the gentleman from payers are trying to cheat the Govern- Government can and must do for all of New York [Mr. RANGEL] for yielding me ment. The bill that we propose today is us. We cannot change the function or the time. the first step in providing citizens H10028 CONGRESSIONAL RECORD — HOUSE November 5, 1997 greater tax fairness, protections from gress to take steps to reform this agen- privileges are being extended to pro- the abuse of the IRS. Our bill includes cy. Today we move forward with strong tect taxpayers who choose to confide provisions proposed by the gentleman bipartisan legislation that will not with their certified tax preparer, their from Tennessee [Mr. TANNER] and my- only reform the way the IRS does busi- certified public accountant. Finally self for an increased confidentiality ness, but will also restructure the the burden of proof for taxpayers who protection for taxpayers and for the agency to help assure that taxpayers cooperate in IRS proceedings will now tax advice that they receive from their are better protected from IRS abuses in fall to the IRS should the case go to advisers. Currently, the IRS can sub- the future. court. poena even the thought process of a This legislation makes a number of These are some of the changes that taxpayer unless that taxpayer is rep- important changes. First, it shifts the should make dealing with the IRS resented by an attorney. burden of proof from the taxpayer to much easier. Today we are moving for- Our bill also reins in the lifestyle au- the IRS in disputed tax cases that ward with the legislation that sends a dits that can currently be initiated by reach U.S. Tax Court. No longer will strong message to all our constituents. something as simple as a new car in taxpayers be considered guilty until We have heard your frustrations with the driveway unless there is reasonable they are able to prove themselves inno- the IRS, and we are taking actions to indication of unreported income. So no cent. right these wrongs. more fishing expeditions. Second, this bill expands taxpayer Mr. PORTMAN. Mr. Speaker, I en- Mr. Speaker, while the language in rights by providing citizens 28 new joyed working with the gentleman. We the bill is not as broad as we proposed, legal protections against the IRS. did have a lot of good, constructive and in our particular proposals the When taken together, these 28 new tax- conversations, and the gentleman gentleman from Tennessee [Mr. TAN- payer rights will shift the IRS’s pri- helped to make it a better bill. Mr. Speaker, I yield such time as he NER] and I will continue through this mary focus from heavy enforcement to bill into the next year to ensure that customer service. may consume to the gentleman from Texas [Mr. PAUL]. every taxpayer is afforded confidential- Finally, this bill will establish a (Mr. PAUL asked and was given per- ity protections currently enjoyed by more accountable IRS oversight struc- mission to revise and extend his re- only those who can afford attorneys ture. This new board, which will bring to the IRS outside expertise, will assist marks.) and those who through this new legis- Mr. PAUL. Mr. Speaker, I rise in sup- in fundamentally changing the culture lation can afford an accountant. port of this legislation. It is a step in and management of the IRS. We intend to make it clear to the the right direction. Get rid of the Code, The gentleman from Texas [Mr. AR- IRS and the courts that Congress does get rid of the IRS, and get rid of the in- CHER], the gentleman from Ohio [Mr. intend for them to be limited to the come tax. PORTMAN] and the gentleman from scope of their information gathering Mr. Speaker, I rise in tepid support of H.R. ability. I encourage support of this bill. Maryland [Mr. CARDIN] are to be com- 2676, the Internal Revenue Service Restruc- mended for their efforts on IRS reform. b 1230 turing and Reform Act of 1997. As most re- I would urge my colleagues to support cently evidenced by Senate hearings, tax- Mr. RANGEL. Mr. Speaker, I yield 1 this common-sense yet long overdue minute to the gentleman from Ohio payers across the country are clamoring for legislation. real reform. Yet, instead of delivering genuine [Mr. STRICKLAND]. Mr. RANGEL. Mr. Speaker, I yield 2 Mr. STRICKLAND. Mr. Speaker, I reform, the Congress delivers an Oversight minutes to the gentleman from Wis- Board made up, in part, of experts from the was walking down the sidewalk in a consin [Mr. KLECZKA], a member of the fields of management, customer service, Fed- small town in my district recently, and Committee on Ways and Means. eral tax laws, and information technologyÐin an older woman in a wheelchair called Mr. KLECZKA. Mr. Speaker, I thank other words, more guards to oversee the to me. I went over and sat down and the gentleman from New York for watchdogs. talked with her for a while. During the yielding me this time to speak on the I can support this bill because it partially course of that conversation, she said to IRS Restructuring and Reform Act of shifts the burden of proving guilt from the tax- me, ‘‘Congressman, I wish you would 1997. As a member of the Committee on payer to the Government. Innocent until prov- just chew up the IRS and spit it out.’’ Ways and Means, I was pleased that we en guilty is a tenet that permeates any free I asked that sweet, gentle, older were able to formulate a bipartisan bill society but has somehow been ignored with woman why she felt as strongly as she that will benefit all American tax- respect to the Internal Revenue Service's im- did, and she said, ‘‘I believe the IRS payers. position of criminal penalties. Additionally, this contributed to my husband’s death be- I must say that I have had several bill makes political audits by executive branch cause they hounded him,’’ and she said, conversations with the gentleman from officials felonies punishable by fine and/or im- ‘‘It didn’t bother me as much as him Maryland [Mr. CARDIN] and also the prisonment. because I’m a tough old bird.’’ gentleman from Ohio [Mr. PORTMAN] on While these small steps are laudable, in I walked away thinking that it is sad the bill, and I was quite surprised that light of the massive nature of the problem, the that any American would ever feel that we were able to work together to come complexity of the Tax Code, and the oppres- way about an agency of our Govern- to this day. sive nature of the excessive taxation under ment. And so I came to the floor today One of the most difficult hurdles in which we are currently so heavenly burdened, mostly to say thank you to my Ohio formulating the legislation was deter- this bill is but token reform. The current tax- colleague [Mr. PORTMAN] for all the mining the structure and responsibil- ation problem is rooted in the excessive work he has done on this. I know many ities of the oversight board. I had spending by Government resulting from a bad have worked on this legislation. This strong reservations and concerns about case of congressional activism under which may be the most significant piece of the IRS Restructuring Committee’s the legislative body has repeatedly over- legislation directly affecting the lives recommendation that the board made stepped it's article I, section 8, constitutional of American citizens that this Congress up of private individuals have the powers. deals with. power to hire and to fire the IRS com- No one likes to pay taxesÐalmost. The Mr. PORTMAN. Mr. Speaker, I yield missioner. Fortunately, a workable large majority of people in any society enjoy 2 minutes to the gentleman from Cali- compromise was made that gives the the benefits that come to them through Gov- fornia [Mr. HERGER], a member of the oversight board significant input into ernment programs, yet, essentially no one Committee on Ways and Means. the workings of the IRS, but keeps the likes to have their taxes increased, believing Mr. HERGER. Mr. Speaker, today I appointment of the Commissioner in they are always on the short end of receiving rise in strong support of H.R. 2676, the the hands of the President. benefits in return. And this of course is true. IRS Restructuring and Reform Act. In This bill also contains some impor- The most people never get back what is taken town hall meetings throughout my tant provisions protecting the rights of from them in the form of taxes. northern California congressional dis- taxpayers. For example, innocent Oliver Wendell Holmes, however, was dif- trict and wherever I go, I hear from spouses will now have an easier time of ferent. He claimed he likes to pay taxes say- taxpayers who are fed up with IRS attaining this protective status. In ad- ing: ``I like to pay taxes. With them I buy civili- abuses and who are demanding Con- dition, attorney/client confidentiality zation.'' In a more famous quote, Holmes said: November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10029 ``Taxes are what we pay for civilized society.'' reveal the Government's atrocities against its When one adds the tax that the employer A more accurate statement might be that own people instead of choosing to hide their and the employees pays, which is the real taxes, especially if collected with the tactics of identity. The fact that IRS agents are hidden labor cost, each individual is paying 17 per- the IRS, are what permits Governments to act behind screens makes one think that they be- cent of their income up to $65,000, which is a in a most uncivilized manner. lieve they belong to an organization such as truly regressive income tax. If a flat tax of 17 Teddy Roosevelt, during the Progressive the Mafia and if discovered they themselves percent is added we are immediately at 34 era, 1902, appointed Oliver Wendell Holmes, would become a victim. It reminds me of the percent and rising. With a flat tax this high and Chief Justice of the Supreme Court, a time horrible pictures that we see of our FBI, BATF, with removal of tax exemptions for everything, during which the ground work was laid for the and DEA agents making questionable raids on and especially our donations as well as our in- modern welfare state later promoted by Ted- private citizens with stocking caps over their terest on our houses, we are actually setting dy's cousin FDR. And it was not too many heads. In a civilized and free society, Govern- the stage for a much higher tax rate which will years after the appointment of Oliver Wendell ment agents would act as our servants and make no one happy. Sure, there might be a Holmes to the Supreme Court that these pro- not convey an appearance of a criminal ele- little less difficulty figuring out the code, a cost gressive ideas led to the establishment of the ment. But, nearly two decades ago Milton in and of itself, but if one can save some income tax, the IRS, and an equally threaten- Friedman asked ``When you sit across the money by having a complex code this could ing organization, the Federal Reserve. table from a representative of the IRS who is actually be better than a simple code where Frank Chadorow had a much better under- auditing your tax return, which one of you is we are forced to divvy up more to the welfare standing of what the income tax meant. ``In- the master and which the servant?'' state. Besides, the flat tax that is proposed come taxation is in principle the worst of all In light of recent revelations the administra- has exemptions for low income so immediately forms of taxation because it begins by assert- tion was quick to defend the IRS and explain it is a flat tax after a certain amount thus it is ing the prior right of the state to all wealth.'' the need for a strong collection agency. What in reality a graduated tax. Businesses would This principle can be applied to almost all else could we expect? However, even the ad- still have to deduct the expense of doing busi- taxes. A tax on inheritance could be consid- ministration senses that the public is on the ness prior to reporting their profits. ered even worse since we accumulate prop- verge of revolt and quickly added that certain A national sales tax has also been bantered erty and capital often with after taxed money. reforms would be necessary. Reforms sug- around as an alternative to the income tax. Since all taxes are essentially a tax on pro- gested by the administration included an advi- Where it too has some advantages, reducing ductive effort, whether it be corporate tax or sory board, of course without clout, as well as the effects of the complicated Tax Code and even a sales tax, this principle is certainly ac- making sure the IRS offices were kept open making filling out our tax returns easier, it also curate when the revenues are used for redis- for longer periods of time including Saturdays. has many short-comings. First, nobody knows tributive purposes. The advisory board would be used to advo- precisely what rate would be require to pay all I see nothing wrong with the slogan ``tax- cate suspensions of seizure of property when the bills. Some have suggested 15 percent, ation is theft,'' when the revenues are used to appropriate. Sure. When an agency of Gov- others believe it will be over 30 percent, which transfer wealth or privilege from one group or ernment is acting outside the law, i.e., the I am inclined to believe. The reason it's impos- person to another. In spite of all the talk in re- Constitution, while continuously making nu- sible to calculate is that at a certain level of cent months regarding the method of taxation merous errors, then expanding their hours and the abuse by the IRS these basic prin- taxation there will be a motivation to avoid the seems to me to only compound our problem, sales tax by expanding the underground econ- ciples are not being discussed. There has not reduce them. Though I'm sure some been too much emphasis placed on the taxing omy. Americans will see this as a positive for the The argument is made that the sale tax is process rather than the philosophical prin- administration, hardly will this do anything to a good way to collect revenue because those ciples that not only endorse but encourage an help the problem. who are ducking taxes like the drug dealers abusive tax system. Even the Republican proposal to have a pri- The recent Senate hearings on IRS proce- and other criminals will be forced to pay the vate board with more clout doesn't address dures however were very beneficial in that sales tax when they buy luxury items. There is the real problem. And another Taxpayer's Bill they were reported by the major media and nothing automatic about that assumption. Be- of Rights won't help either. If a private board confirmed what most Americans suspected. sides, IRS agents, who may be called some- is being appointed, what would keep the es- Probably the most outrageous confirmation thing else, will be required to monitor every tablishment from appointing friendly people to was that IRS agents did confess to a delib- small business and every small profession to the board? I can't see where this would be erate policy directed toward the weak and the make sure that the revenues are collected and any different from the IRS being supervised by poor to intimidate and make examples of deposited in the Treasury. I can imagine that political hacks from the Treasury Department. them. Agents testified that the wealthy and the many small businesses and entrepreneurs This whole notion that better service can be sophisticated were generally left alone be- working at home will have every bit as many cause they were more capable of defending given to the taxpayer is a bit preposterous. records to fill out as they do now with their tax their rights. This is an outrage that should not The fact that we call this the Internal Revenue return. Obviously, reforming the tax collecting be forgotten and should be used as a strong Service is an obvious misnomer. How can an system to make productive Americans happy motivation to eventually do something about agency of Government that sets out to con- is much more difficult than meets the eye. our tax system. fiscate our wealth provide a service to us? It Many Americans and Washington politicians The fact the some citizens have even com- is just as preposterous to refer to victims as are overly optimistic about changing the meth- mitted suicide over the pressure of facing the customers. Taxpayers are no more customers od of collection as the solution to the problems tax collectors is something that should not of an organization providing a service than the we face with our over exuberant revenuers. ever happen in the civilized society that man in the moon. This type of wording is noth- Changing the collecting system, if the goal Holmes claimed we were paying for. Thou- ing more than the newspeak of which Orwell is to pay the bills and avoid a deficit, does sands of Americans are quite willing to pay wrote. So far the reforms advocated by the nothing to solve the real problem of dis- the penalties and excess tax without challeng- administration and the Congress will do noth- enchantment with Government and the disgust ing the Government even when they know ing to solve our long-term problems. with high taxes as well as with the prodding they are right because the emotional and fi- Other more serious reforms have been sug- Federal bureaucrats who invade every aspect nancial penalty of fighting the IRS is too great. gested, such as eliminating the current Tax of our lives. For the last four decades it has become Code and replacing it with a flat tax or a na- What is really upsetting most productive known to most Americans that both Repub- tional sales tax. Both of these proposals come Americans is the fact that they have to work lican and Democratic administrations have up far short of dealing with the real problem. until July 3, before they get to keep any of been willing to use the IRS, and for that mat- Supporters of both proposals never touch the their earnings for themselves. It's ironic that ter other regulatory agencies, to punish their problem of the Social Security, Medicare, flat July 4th is our first day of independence from political enemies. It seems that the current ad- tax of 17 percent which not only is here to all taxation. This does not even take into con- ministration has refined this technique to near stay but will surely rise. Since these programs sideration the inflation tax, i.e., the loss of perfection. It has been quite willing to attack, are sacred no one can suggest that something value of our purchasing power, as our Govern- through the Tax Code, those foundations and should be done about them. But in reality, as ment continues to diminish the value of the groups that oppose Clinton's policies while ig- I have mentioned before, the Social Security dollar. noring the friendly ones. and Medicare tax is an income tax that is The inflation tax is something that is much If we indeed lived in a truly civilized society used for general revenues as the trust funds more difficult to understand and yet is the tax individuals would be willing to come forth and are nonexistent. of last resort of all authoritarian governments. H10030 CONGRESSIONAL RECORD — HOUSE November 5, 1997 We are now at the point where the American Supply side economics pushed by many long exist without economic freedom. Today, people are starting to rebel against any in- during the 1980's argued strenuously for lower we are living under conditions which encour- crease in taxation. In spite of the fact that we tax rates with which I agreed. But the goal of age the export of capital and the exporting of cannot pay our bills we were actually able, for the supply siders was merely to stimulate the jobs while encouraging the immigration of indi- political reasons, to make a token cut in some economy so that higher revenues would flow viduals who will do quite well living off our wel- taxes last summer. This sill not prevent our to WashingtonÐa bad motivation. It is pos- fare state. In spite of the euphoria now being Government, acting through the Federal Re- sible that with lower tax rate the economy expressed in Washington, at the height of our serve, from creating new credit when nec- would pick up but if the result was higher tax so-called recovery, the conditions are set for essary thus diminishing the value of the revenues, these revenues should be used to soon recognizing that productive efforts are money already held. On this tax, however, be- further cut taxes not increase expenditures. At being impeded by our tax and regulatory sys- cause it's difficult to see and the victims hard- the same time the supply siders were pushing tem and there has been absolutely no serious er to find, the measurement is elusive. For this the lower tax rates for the purpose of increas- intent to change our spending habits. The wel- reason I am predicting that when push comes ing revenues, they were advocating higher fare/warfare state is moving briskly along and to shove with the budget it will be the ultimate and higher budgets for the IRS to enhance the is being encouraged by the deceptive pro- tax used on the American people in an effort ability of the tax collectors. The Reagan ad- nouncements that our budget is balanced and to continue to finance the welfare/warfare ministration was quite receptive to this prin- all we need to do is change the method by state. The real tragedy of this is that percep- ciple believing that if a $1 billion in additional which we collect revenues. tions of the value of the dollar make it almost funds was given to the IRS it promised to We do not have a technical problem or an impossible to predict who the victims are produce $17 billion more in revenues through IRS code problem. We have a problem in de- going to be and when the value of the dollar the process of harassment, intimidation and fining the proper role for government. As long will suddenly change. For instance it was quite audit. Even this year the Treasury bill appro- as the majority of the American people still be- clear when the recent devaluation hit the priation, which contained the pay raise for the lieve it's in their best interests to have a gov- Mexican Peso it occurred suddenly and sharp- Members of Congress, had an increase in the ernment that redistributes wealth and polices ly and the victims were the middle-class and IRS budget of 9 percent giving them an in- the world, this crisis will continue to build. A the poor throughout the country. But it was not crease of more than a half billion dollars to do proper sized government would require mini- gradual, steady and logical because the infla- exactly what they have been doing for dec- mal taxes and would be designed for the pro- tion tax frequently comes in sudden bursts. ades. So, in the middle of the hearings on the tection of liberty and equal justice for all. We The attention that token reforms are getting Hill revealing the outrageous tactics of the have come a long way from those intentions today, whether it be reforming the current sys- IRS, and at the same time the politicians were of the Founders of this country, but we'll soon tem and devising a friendlier IRS or talking face a crisis of confidence and be forced once about a flat tax or a sales tax, actually is more propagandizing for tax reform, the large major- ity of Democrats and Republicans were voting again to decide for ourselves just what kind of of a distraction than a constructive debate. I government we want and how much govern- am not saying this is intentionally done or of for a huge increase in the IRS budget to con- tinue the very process they were publicly con- ment will tolerate. Let's hope and pray that no value but I think that is the result of the those of us who believe in limited government current discussion. demning. Today the atmosphere in Washington can and maximum individual freedom will use the The reason for this is that fundamentally events of the coming years to promote the and foremost it's not a tax problem we face. be described as deceptively optimistic. Many of those who were preaching cutbacks and cause of liberty and not just tinker with the The basic problem confronting us as a country Tax Code. When that day comes the big tax is a spending problem. Concentrating only on austerity a few years ago are claiming great victories with the accomplishment of a bal- debates will probably be; should we have a 5- taxes, which is okay to a degree, avoids the percent import tax or a 10-percent import tax subject of the size of government and the rea- anced budget. This budget is not balanced re- gardless of what the politicians are saying. and we will not be dealing with a Federal in- son why the Government spends so much of come tax nor a Federal sales tax at all. More- Last year's national debt went up nearly $200 the Nation's output. If we concentrate only on over, we will not be concerning ourselves with billion when the funds taken from the trust taxes and we avoid the subject of the role of triffling reforms of a revenue agency which funds are considered. Members are actually Government and why the Government wants harasses our people and eats out our sub- sitting around figuring out how to spend the more of our money, we cannot and will not stance. Let us hasten that day. solve the problem. The goal ought to be to excess they expect over the next several Mr. PORTMAN. Mr. Speaker, I yield shrink the size of government and lower taxes. years. What they don't understand is that their 2 minutes to the gentleman from Ari- As bad as the income tax is on principle, an projections of our future spending habits, the zona [Mr. HAYWORTH], a member of the income tax of 3 percent on all money earned tax revenues, interest rates, and the state of Committee on Ways and Means. would not cause a tax revolt and most Ameri- the economy are unknown to them and quite Mr. HAYWORTH. I thank the gen- cans would voluntarily pay their taxes. Even a frankly are going to be a lot different than their tleman from Ohio for yielding me this national sales tax of 5 percent would not optimistic projections. time. prompt a hue and cry over the tax system. All taxes are extracted from the productive Mr. Speaker, I have heard from many The problem, of course, is that the Govern- effort of the people. Whether the tax comes of my constituents, but this morning I ment is spending way too much money and through an income tax, a sales tax, an inherit- heard from an Arizonan who made an there is no serious effort to cut back. ance tax, a school tax, property tax, or what- indelible impression and really brought Recent budgetary efforts in Washington indi- ever, this is the method whereby the state a face to this debate, Mr. Speaker. His cates that there's not much chance that the confiscates the productive effort from the peo- name is Bob Brockamp. Bob’s grand- current Congress is going to do anything ple. Governments produce nothing. All govern- father, Stan McGill, at age 93 several about cutting back. The welfare state is alive ments can do is use force to redistribute years ago made a mistake in writing a and well. Even the National Endowment for wealth and pay off their political cronies. The check to the Internal Revenue Service. the Arts could not be cut, Clinton's health pro- name of the game is power. Power is He meant to write a check, Mr. Speak- gram is being implemented by the Republican achieved by the politicians through the control er, for $700. He added an extra zero. Congress, public housing money is increasing, of people's income through a taxing system as $7,000. Other merchants and other enti- and just recently, in our Education Committee, well as manipulating the value of money. As ties with whom Mr. McGill had dealt a Republican proposal supported by Demo- Chief Justice John Marshall said: ``The power understood that he was having prob- crats to increase national educational expendi- to tax is the power to destroy.'' It is not just lems. Indeed, he was in the stages of ture for the purpose of promoting charter a coincidence that those who introduced us to Alzheimer’s disease, and they would schools was easily passed, although it author- the welfare state, the Progressives of the early say, ‘‘Obviously there’s been a mistake ized a new $100 million program. 20th century, believed both in the power to tax in his remittance, we’re sending back a As long as this attitude prevails on the as well as the power to inflate. significant portion of that money.’’ spending side, Saturday morning hours for the In our relatively free society where produc- Just about every business he dealt with IRS and keeping telephone lines open 24 tive efforts still exist and a profit motive re- caught that mistake, but the IRS, hours or having a review panel or instituting a mains, big government programs can be toler- when it received a check for $7,000, sales tax or a flax tax will do nothing other ated and funded for long periods of time. But kept the money. than delay the serious discussion about reduc- as time goes on the productive ability of cor- Mr. McGill passed away. Bob’s mom ing the role of government in our lives, in our porations and individuals is diminished as are received basically a threat from the In- economy and in the world at large. all our freedoms for personal freedom cannot ternal Revenue Service. Even though November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10031 her late father had paid $7,000 more Philadelphia and look into the Found- But let me tell you what. No one is than he owed, the Internal Revenue ers. Mr. Madison leans over to Mr. Jef- going to be totally satisfied with any- Service said to Mrs. Brockamp that his ferson, he says, ‘‘Great stuff here, isn’t thing. I am satisfied today. I am satis- estate owed $1,000, and she should pay it, Tom?’’ And Jefferson says, ‘‘Great fied today that the Republican Party it if she wanted to keep her home and day. Aptly named the Bill of Rights, included a Democrat provision that, by personal property. Mr. Madison. Do you agree, Ben?’’ God, I could not get heard on my own The Brockamps tried to fight this in Ben Franklin says, ‘‘Hey, don’t let it side of the aisle. I compliment you, I court. They took it all the way to the be written that Ben Franklin’s not for thank you, and let me say this. Keep Supreme Court. The Supreme Court this.’’ Freedom of religion, freedom of the burden-of-proof provision in that ruled 9 to 0, ‘‘Gee, Brockamps, you speech, trial by a jury of our peers, no final bill. might be right on this morally, but search warrant without seizure. A Mr. PORTMAN. Mr. Speaker, I once you’re incorrect legally because the great day. ‘‘Do you agree, Mr. Han- again want to commend the gentleman statute of limitations has run out.’’ cock?’’ for his persistence and for his patience Mr. Speaker, one of the many great ‘‘I think it’s great, but I think we and for his strong support now of the things we do in today’s legislation is to should run it by George. Mr. Washing- legislation, a 10-year crusade. change the statute of limitations, in- ton?’’ Mr. Speaker, I yield 2 minutes to the deed to remove the statute of limita- ‘‘Fellows, this is great, but what is it gentleman from Minnesota [Mr. tions or suspend that statute for those going to cost? What are the revenue RAMSTAD], a member of the Committee taxpayers who are mentally and/or impacts? We better hire some account- on Ways and Means. physically disabled and unable to un- ants and score it.’’ Mr. RAMSTAD. Mr. Speaker, I thank derstand what they were doing. Sadly, Unbelievable. We know George Wash- the gentleman for yielding me this it will not help Stan McGill, but it will ington never said that. The House of time. help thousands of senior Americans Representatives must insist today to Mr. Speaker, as a cosponsor of this across the country. Support this legis- put the Bill of Rights back in the Tax important legislation to provide a lation. Let us make a move positively Code of the United States of America sweeping overhaul of the IRS, I appre- for America. because if it was up to the IRS, they ciated the opportunity to work in a bi- Mr. RANGEL. Mr. Speaker, we would would score the Bill of Rights, and, by partisan, pragmatic and collaborative not be talking about burden of proof if God, we would not have it. way with the gentleman from Ohio it were not for the tenacity of the gen- Those IRS workers are not demons. [Mr. PORTMAN], the gentleman from tleman from Ohio [Mr. TRAFICANT]. Mr. We have created a monster. Most of New York [Mr. RANGEL], the gentleman Speaker, I yield 3 minutes to the gen- them are good people. But in America from Maryland [Mr. CARDIN], the gen- tleman from Ohio. the people govern. It is time to take tleman from Texas [Mr. ARCHER] and Mr. PORTMAN. Mr. Speaker, I yield our Government back. Today’s vote is other members of the Committee on 2 minutes to the gentleman from Ohio the most important vote we will cast Ways and Means. [Mr. TRAFICANT]. in that whole process. b 1245 The SPEAKER pro tempore (Mr. I thank the gentleman from Ohio PEASE). The gentleman from Ohio [Mr. [Mr. PORTMAN] for working hard to in- We promised, Mr. Speaker, tax relief TRAFICANT] is recognized for 5 minutes. clude my provision in this bill. I want for the American people, and we deliv- Mr. TRAFICANT. Mr. Speaker, I to thank the gentleman from Georgia ered. We also promised a major over- want to commend the Republican [Mr. LINDER], the gentleman from haul of the IRS, and today we must de- Party, the gentleman from Texas [Mr. Georgia [Mr. COLLINS], the gentle- liver again. ARCHER], the gentleman from Georgia woman from Washington [Ms. DUNN], Mr. Speaker, this first comprehensive [Mr. GINGRICH], the gentleman from all of you. reform of the Internal Revenue Service Ohio [Mr. PORTMAN], and also along Let me say this before I close out. I in over 45 years is long overdue. I have with the gentleman from New York am not on a first-name basis with any- heard from countless constituents [Mr. RANGEL] and the gentleman from body at the White House, but I will about IRS abuses like most of my col- Maryland [Mr. CARDIN] for this great make a house call over this provision leagues have about unfair and selective bill. This is a great day. I want to also that I have worked for for 10 years. audits, arbitrary rulings, communica- commend the Republican Party for be- Some 98 percent of the American peo- tions couched in gobbledygook and ginning the dialog to change the Tax ple understood it and supported it. legalese. Mr. Speaker, these kinds of Code. I am glad to see there is no partisan- abuses of the American taxpayers must By the way, I would like to see us re- ship here today. The gentleman from stop now. We must never forget we duce income taxes in half and couple it New York [Mr. RANGEL], one of the work for the taxpayers of the United with a small sales tax, require a two- most qualified Democrats we have ever States of America, and this legislation thirds vote to increase it, and exemp- had on Ways and Means, was not in the will make a big difference to the tax- tions for poor people. position to take a stand on the Trafi- payers of this country. But let me say this today. In Amer- cant provision. But I am going to com- It is high time we change the IRS ica, an American citizen accused shall pliment the Republican Party here from an adversarial organization to a be considered innocent until proven today for swallowing hard and includ- consumer-friendly, service-oriented or- guilty, and the accuser shall carry the ing my provision. I know it was not ganization. Let us pass this important burden of proof in that matter. Where, easy. I know there are still some words bipartisan IRS reform bill today. Let ladies and gentlemen, in God’s name in there that I am not totally crazy us pass these 28 new rights for tax- have the bureaucrats been able to se- about, and they know that as well. But payers. Let us overhaul the manage- duce Congress over the years to change we can ratchet down the beginning, ment of the IRS and hold the IRS ac- that provision? If it is good enough for and I am hoping that next year after a countable. Let us shift the burden of mass murderers, it should be good track record of the burden of proof lan- proof, as the gentleman from Ohio [Mr. enough for Mom and Dad, our tax- guage change, you will consider two TRAFICANT] has so eloquently called for payers. things from JIM TRAFICANT: Cleaning for 10 years. Let us shift the burden of I come to the floor here today be- up that language on burden of proof proof in tax cases from the taxpayer to cause I know the White House has not which can be improved; and, second of the Government. Mr. Speaker, the tax- signed off on this last provision. The all, dealing more specifically with the payers of America deserve nothing less. Secretary of the Treasury questions its seizure practices of the IRS and look at Mr. RANGEL. Mr. Speaker, I yield 2 revenue impact, and the other body the Traficant provision that says be- 1⁄2 minutes to the gentlewoman from still has some reservations. I want the fore they can seize your property, they Florida [Mrs. THURMAN]. gentleman from New York [Mr. RAN- must have judicial consent, you must Mrs. THURMAN. Mr. Speaker, I GEL] to imagine if we could travel back have a notice of a hearing, and you thank the ranking member, the gen- in time with all this technology, that shall be present and allowed to be rep- tleman from New York [Mr. RANGEL], Members of Congress decided to go to resented at such hearing. for yielding this time to me. I want to H10032 CONGRESSIONAL RECORD — HOUSE November 5, 1997 express my strong support for this leg- legislation, and I want to commend my Mr. PORTMAN. Mr. Speaker, I yield islation. colleague, the gentleman from Ohio 1 minute to the gentleman from Mary- The oversight committee conducted [Mr. PORTMAN], for his leadership of land [Mr. HOYER]. a series of hearings on the problems what was a yearlong process of analyz- Mr. HOYER. Mr. Speaker, I thank facing the IRS and the American tax- ing the serious problems plaguing the the gentleman from New York for his payers who must deal with the IRS. IRS and taking responsibility for de- comments. The committee took seriously the neg- veloping solutions to those problems as As a preface, I have served on the ative experiences of taxpayers before the House chair of the Reform Commis- Subcommittee on Treasury, Postal drafting this bill. sion. I commend him as well for his Service, and General Government since The goal of this bill is that IRS oper- careful stewardship of the commis- January 1983. It is the responsibility of ate efficiently while treating all Amer- sion’s report, educating Members on its that subcommittee to oversee the In- icans with the respect they deserve. substance, being open to rethinking ternal Revenue Service’s budget and its This bill will ensure that incidents of some of its difficult issues, and, as a management practices. harassment and intimidation against member of my subcommittee, working In the last three terms of Congress law-abiding taxpayers become a thing with us to strengthen and enlarge the under Democratic and Republican lead- of the past. taxpayers’ rights. ership, our subcommittee has raised Some of the provisions of H.R. 2676 Today we will adopt the most dra- very substantial questions, and we codify reforms already implemented by matic reform of the IRS since 1952. The have worked with the distinguished the administration. Others come from three-point plan will overhaul the tax- gentlewoman from Connecticut on the bipartisan National Commission on writing process to help simplify the those issues and the distinguished staff Restructuring the IRS. All of these are Code and protect taxpayers. It will cre- of her subcommittee who has done such necessary. The taxpayer bill of rights ate an independent oversight board to an outstanding job. language will protect innocent spouses bring private sector expertise to the I want to say to the gentleman from from having to pay tax penalties for table to modernize the IRS’s tech- Ohio [Mr. PORTMAN] and to Senator the action of their spouses. The bill nology and create a customer service KERREY, as they know, that I think also provides civil damages to the tax- culture that can provide timely and ac- their efforts have produced a good payer when IRS employees negligently curate answers to questions and assist work product. I think the commission disregard the law. The bill shifts the taxpayers with problems. raised many appropriate questions and burden of proof onto the IRS in Tax Third, it will create 28 new taxpayer recommended some very solid solu- Court cases when the taxpayer has co- rights, including the right to sue the tions. Having said that, I want to pref- operated fully with reasonable requests IRS for damages resulting from the ace my remarks by saying that I ask for information. This is long overdue. IRS’s negligence, shifting the burden of no colleague to follow me in either These are real and not just cosmetic proof to the IRS in the Tax Court, and adopting my premises or my vote, not reforms. The IRS needs to do a better for the first time taxpayers will be able one, because I understand the power of job of educating the people of the to report abusive agent behavior to the the rhetoric that precedes this bill to availability of taxpayer services. IRS without fear of retaliation. Letters reform the IRS. As Members of Congress, we all try threatening an audit if someone does There have been a lot of columns to help our constituents who have tax not participate in some voluntary pro- written on this issue. Jim Glassman, problems. In Florida, we have used an gram will end, and for the first time not an apologist for Democratic poli- excellent taxpayer advocate in the IRS taxpayers will be given an explanation cies, says do not reform the IRS, and Jacksonville office. She has been able of the reasons for an audit and their he says Republicans talk grandly about to resolve many longstanding tax prob- rights in that process. simplification but this year passed leg- lems of the people of Florida’s Fifth This should end politically inspired islation adding 285 new sections and 824 District. I encourage taxpayers to con- activities, it should end costly amendments to the tax law. tact their advocates. They might be multiyear audits, even in cases where Mortimer Caplin, a distinguished able to quickly resolve some of their the person audited has been found to be former IRS commissioner, said this: tax problems, and it is time to move owed money by the Government, and The proposed overall design by the Re- forward. for the first time 30,000 innocent structuring Commission and its statutory I also want to remind my colleagues spouses will be saved $30 million in offspring is deeply flawed. It would obscure and the taxpayers that on Saturday, taxes because they will not have to pay the core focus of the IRS, blur the lines of November 15, the IRS will hold the taxes owed by their former spouses, not authority, and hamstring efficiency. first of its monthly problem-solving by them. Too often the deadbeat dad The good news, my colleagues, is days in each of its 33 district offices. not paying child support or taxes gets that under Secretary Rubin and Dep- This day will give taxpayers and prac- off while the innocent spouse is dunned uty Secretary Summers, for the first titioners the opportunity to resolve by the IRS because she is available and time since I have been on the Appro- problem tax cases. she is responsible. priations Committee, there has been a The IRS is encouraging, and I think The 28 taxpayer protections will pro- focus on management issues in addi- this is important, is encouraging tax- tect taxpayers forcefully and fairly, tion to tax policy issues. As a result, payers to contact the IRS as soon as and I am proud of the work of my sub- very substantial things are happening possible to schedule an appointment in committee in shaping these rec- at the IRS. the nearest district office. I hope that ommendations and in strengthening We are starting to get a handle on taxpayers with outstanding problems the taxpayers’ protections. tax systems modernization, which was will take advantage of this. I urge support of this bill as it rep- a disaster under the Reagan adminis- Mr. Speaker, H.R. 2676 represents an resents a giant step forward, but I urge tration, under the Bush administra- important step in returning govern- the committee to move forward with tion, and under the early Clinton ad- ment to the people it represents. I urge tax simplification which is the route of ministration, because the IRS clearly the support of this bipartisan bill. reform. did not get a handle on its information Mr. PORTMAN. Mr. Speaker, I yield Mr. RANGEL. Mr. Speaker, I yield systems technology. The good news is, 3 minutes to the gentlewoman from 41⁄2 minutes to the gentleman from we are now doing just that. We have an Connecticut [Mrs. JOHNSON], the chair Maryland [Mr. HOYER] to express his outstanding person that was recruited of the Subcommittee on Oversight of views. Whenever anyone talks about specifically to take on this task. the Committee on Ways and Means, improving how we collect taxes, his The Senate just a few days ago con- who played a very important role in name, whether it was a Republican or firmed Mr. Charles Rossotti as the new electronic filing, taxpayer rights, and Democratic President, was always Commissioner of the IRS. He is the many other provisions of this legisla- there. He has worked very hard in not former president of the American Man- tion. only trying to improve the present sys- agement Systems, Inc., a firm of 7,000 Mrs. JOHNSON of Connecticut. Mr. tem but trying to improve the present people in northern Virginia. He has Speaker, I rise in strong support of this piece of legislation. been doing exactly what IRS needs to November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10033 do, in the private sector: Handling in- ices for taxpayers, better training for sponsibilities are. They do not come up formation and providing quick, user- IRS employees, modernizing comput- with the budget for the IRS, the Con- friendly responses in an efficient man- ers, and simplifying the overall Tax gress still does that of course ulti- ner. This administration has moved to Code. mately, but in fact the Treasury De- make sure that the IRS makes many of Let’s not hamstring the Commis- partment will send its own budget. We the changes proposed by the restruc- sioner’s ability to enact real IRS re- do get an informational budget which I turing commission. form by fooling ourselves into believ- think is going to be very important, Now, having said that, the adminis- ing that adding another layer of bu- particularly to the appropriators. tration, myself, and others raised very reaucracy in the chain of command is Second, he talks about an additional substantial questions about the bill going to solve IRS’ problems. layer of bureaucracy. What we are that was originally introduced. Let’s build upon the progress started doing here is we are providing over- I might say tangentially, there has by Secretary Rubin and ensure that we sight that does not currently exist. We been no speaker raising any questions enter the 21st century with an IRS that are filling a void; it is not an addi- prior to me about the problems with is customer-friendly, technologically- tional layer of bureaucracy. this legislation. However, numerous re- advanced, and governed ‘‘by the people, Mr. Speaker, I yield 21⁄2 minutes to sponsible, thoughtful, conservative ob- for the people.’’ the gentleman from Missouri [Mr. servers have said that this is not the Let us not delegate authority of the HULSHOF], a member of the Committee way to go. IRS to private interests who could eas- on Ways and Means, who has improved On its surface the legislation which ily undermine public confidence in the this legislation. we consider today is about IRS reform. Agency and dramatically decrease vol- Mr. HULSHOF. Mr. Speaker, I accept The proponents claim that it will be untary tax compliance. the invitation of the preceding speaker the answer to all of our concerns about Are we all against the outrageous ac- to go beyond the rhetoric and talk an agency which has admittedly failed tions of the IRS? Absolutely. Should about the outrages. to manage its operations well. we take every action possible to elimi- Mr. Speaker, let not my words today However, too many of my colleagues nate the abuse of citizens that has oc- be an indictment against the hard- believe that the simple creation of a curred by IRS personnel or any other working men and women that are our private sector oversight board will lead person in government? Absolutely. tax collectors that are trying to do the to a more user-friendly and responsive b 1300 best job they can. But as a Member of IRS. the House Committee on Ways and I would argue that the net effect of But let me point out to my col- leagues, that as Charles Krauthammer Means, particularly the Subcommittee H.R. 2676 will be nothing more than on Oversight, we have the responsibil- phony tax populism as described by wrote so compellingly just a few days ago, ‘‘The IRS does not write the rules ity of looking at the inner workings of Gloria Borger of U.S. News. the Internal Revenue Service, and here And while there are many provisions it must enforce. Congress and the are some of the examples we have seen in this bill which I support, I think the President do, and the rules are now an already this calendar year. Earlier this empowerment of a private sector insane 9,451 pages long. The Tax Code year, we learned that over 100 IRS board, with far-ranging powers, will do is so extraordinarily complicated that agents conducted unauthorized inspec- little more than add just another layer no taxpayer can ever be sure he has tions of individual taxpayer records. of bureaucracy. fully complied with the law.’’ The taxpayer bill of rights title is That is the difficulty the IRS has in Example No. 2: The IRS delayed its necessary to provide much needed re- implementing the Code, and your com- notification to business owners of a lief to innocent spouses and those who, mission said so. Your commission said new requirement to electronically file because they are ill, are not able to file one of the problems IRS has is that the payroll taxes, and then the agency for a tax refund in a timely manner. Congress has not given them stable and threatened these same business owners There are also provisions in the bill steady funding levels. Your commis- with severe sanctions for noncompli- which I support that are designed to in- sion also said that there was not a sys- ance. crease electronic filing. temic problem, and I appreciated those Example No. 3: The error and fraud However, the bill creates an unneces- honest remarks. rate in one program alone, the earned sary and more complicated organiza- I would hope, Mr. Speaker, that as we income credit, is nearly 21 percent. tional structure at the IRS, which I be- vote on this legislation, and clearly it Five billion dollars were erroneously lieve will have the overall effect of less will pass with over 400 votes so that we paid out of tax money last year alone. accountability. can all go home and say we are for IRS If these examples of mismanagement While there is no doubt a role for pri- reform. My colleagues recognize that if are not troubling enough, they pale in vate sector advice and expertise, what one is not for IRS reform on appropria- comparison to a recent Associated the IRS needs is more accountability, tion bills and on tax bills, it will not Press story that hit the newspapers in not less. happen. We will not be able to hide be- Missouri, and that is that the IRS is H.R. 2676 would place management in hind this vote. now targeting the victims of the great the hands of people who, however well- I will look forward to the conference flood of 1993 with audits of these indi- meaning, are loyal and accountable to committee. In my opinion, the chair- vidual taxpayers who cannot document the firms and businesses that employ man of the Committee on Finance their losses because receipts were them. wants to go in exactly the wrong direc- washed away in the flood. And while IRS bashing may be both tion, as reported today in the papers, Now, Mr. Speaker, the next time that fun and easy, I would suggest that if we exactly the wrong direction, and that the rivers in this country run high, are truly attempting to make the IRS is what I fear. I would hope that we Americans should not have to look more user friendly, we ought to take a would look carefully at the product of after their family heirlooms, their closer look at the tax writers, not the the conference committee and ensure prized possessions, their loved ones, tax collectors. ourselves that we are in fact doing the and their tax records. Clearly, the time As the national commission on re- right thing for the taxpayers of Amer- has come to institute bold manage- structuring the IRS concluded, Con- ica. ment reforms. gress’ attempt to micro-manage the Mr. PORTMAN. Mr. Speaker, I yield I agree with the preceding speaker, IRS and its frequent changes of the myself just 30 seconds to respond brief- the gentleman from Maryland [Mr. Tax Code, have undermined the ability ly, and then I would like to yield to the HOYER]. We also have to begin to talk of the IRS to manage efficiently in the gentleman from Missouri. But with re- about fundamental reform of the tax long or short term. gard to the gentleman’s comments, system. We have to talk about a fun- No matter how many managerial again I appreciate the supportive words damental discourse about how to changes we make, it will not make the he said. I would ask him again to read change and simplify the Tax Code. But IRS more user friendly. We ought to the legislation, because he has mis- this legislation will begin to imple- focus on improving education and serv- stated what the oversight board’s re- ment that taxpayer service. Shifting H10034 CONGRESSIONAL RECORD — HOUSE November 5, 1997 the focus from audit quotas and collec- Mr. PORTER. Mr. Speaker, I yield 11⁄2 to increase the accountability of the tion goals to taxpayer service, to en- minutes to the gentleman from Florida IRS and to shift the balance of power hance taxpayer rights, allow individ- [Mr. MILLER]. back toward the taxpayer. But it is im- uals to collect attorney’s fees when the Mr. MILLER of Florida. Mr. Speaker, portant to remember that this bill is IRS is wrong. I thank the gentleman for yielding me not the end game in our battle to make It is time to return the word ‘‘serv- this time. the tax system fairer. ice’’ to the Internal Revenue Service. This is a good time to be talking Let us make sure that this bipartisan This restructuring bill does that, and I about this issue as the President has step taken today will not fall prey to urge its support. come out supporting this issue. It is partisan fodder for next year’s cam- Mr. RANGEL. Mr. Speaker, I yield 2 kind of surprising that the President is paign. House Republicans, I hope, will minutes to the gentleman from Mis- sporting this issue, but on Monday of pressure their Senate leaders to pass sissippi [Mr. TAYLOR]. this week he talks about how selfish this bill. Let us get it in place before Mr. TAYLOR of Mississippi. Mr. the taxpayers are to want to cut taxes. the tax season so that people can bene- Speaker, I thank the gentleman for So at least he will say let us reform the fit immediately. yielding me this time. legislation, even though he does not Over the last several weeks we saw I would also like to thank the gen- like the idea of cutting taxes. the abuses which took place at the tleman from Ohio [Mr. PORTMAN] for While I support this bill, I have con- IRS, abuses which caused Americans to bringing this to the floor, and above cern that the bill does little to miti- become even more outraged by our sys- all, I would like to thank the gen- gate the impact of the bureaucratic tem of taxation. There have been tleman from Ohio [Mr. TRAFICANT]. It unions on the restructuring efforts. In countless numbers of stories about is said that Moses, after first freeing 1996, Congress made serious attempts abuses of the enforcement power of the his people from the Pharaoh, and then to downsize and reform the IRS. These IRS. However, one incident which took wandering for 40 years in the desert, efforts, however, were hampered by the place in my hometown of St. Louis, I never got to see the promised land. union that represents the IRS employ- think sums up what is wrong and what That is sort of how the gentleman from ees. As pointed out in a Washington this bill begins to address. Ohio [Mr. TRAFICANT] must feel after Post article, the union was more con- In 1993, Missouri suffered from record his 10 years of trying to get this done. flooding which destroyed thousands of Mr. Speaker, I agree with the gen- cerned with keeping their dues than homes and belongings. There was a des- tleman from Ohio. Had the Democratic helping Congress and their union Mem- ignation of a Federal disaster, and we leadership done its job and allowed this bers make the IRS operate better. I am also disturbed about the abuse made special arrangements for individ- to come to the floor when the Demo- uals to deduct their losses suffered crats controlled the House and allowed of official time that has taken place at from the flood. Amazingly, 3 years the gentleman from Georgia [Mr. the IRS. Official time is, ‘‘authorized paid time off for Federal employees to after the natural disaster took place, DEAL] to bring his welfare reform bill to the floor when the Democrats still engage in union activities.’’ In lay- there was a manmade disaster which controlled this House, we would prob- man’s terms, that is union work at tax- revisited the flood’s victims. The IRS challenged over 200 house- ably still be in the majority. payers’ expense. But having said that, let me com- Although there may be some legiti- holds about the value of the loss they pliment all of the people that worked mate functions for using official time, claimed. Taxpayers were asked to to make this possible, because it is the amount is skyrocketing at the IRS. prove the market value of lost assets right under American law that a per- Last year alone, the employees logged when they had their records wiped out son is innocent until proven guilty, and in over 718,000 hours; 718,000 hours paid by the flood itself. A woman who lost therefore, it should only be that a tax- by the taxpayers for official time to do her mobile home was forced to pay payer is innocent of breaking the law union work. This is a 55-percent in- $10,000 in back taxes from this incident. until the tax court proves him guilty. crease since 1993. Now, this is not a case of IRS agents Second, I think it is very important I realize the Chairman’s limitations who have run amok, this is a case that those people, and I have had a in addressing these issues, but want to where common sense, good common very close friend contact me and say bring them to their attention and ap- sense and fairness was not applied. that he thinks the only reason he was preciate the interest in addressing this People who were allegedly victims of a audited was because he helped me in issue in the future. I applaud this bill disaster were victimized once again by one of my campaigns. That is wrong. If and believe it is a big win for the rights their own Government. This bill will that is what really happened, it is of hard-working taxpayers. help eliminate horror stories like this wrong, and the people who did that Mr. RANGEL. Mr. Speaker, I yield 3 from being repeated. should be punished. This bill would minutes to the gentleman from Mis- This is just the beginning to a criti- provide a $5,000 fine and up to 5 years souri [Mr. GEPHARDT], the Democratic cal process of radically overwhelming in jail to any executive branch em- leader. It should be noted that he was our entire tax system. We also need to ployee who is convicted of using undue the first to reach out to the gentleman restore some sanity to the process of influence over an IRS audit. from Ohio [Mr. PORTMAN] and the Re- filing and preparing taxes. We need to Third, I hope that this is just the be- publican leadership to make certain take the major step of abolishing the ginning of true tax reform in this coun- that this did not become a partisan Tax Code itself and then writing and try. I say to my colleagues today, or issue. rewriting a Tax Code that allows peo- actually this Friday is the day that the (Mr. GEPHARDT asked and was ple to make decisions based on their apprentice welders at the shipyards given permission to revise and extend families’ best interest, a Tax Code that back home get their first paycheck, his remarks.) eliminates gimmicks and loopholes they will pay more in income taxes Mr. GEPHARDT. Mr. Speaker, I that only benefit the wealthiest tax- than all of the cruise ships who do would like to commend the gentleman payers. more than $9 billion worth of business from Ohio [Mr. PORTMAN], who worked One thing is for certain. Democrats in American ports will pay collec- so hard to bring this legislation to- are going to fight for the working men tively. They use our ports, they use our gether and brought together the bipar- and women of this country to get a sys- firemen, our police, our Corps of Engi- tisan bill. I would like to commend the tem that works for them. The Amer- neers to dredge the channel, our Coast gentleman from New York [Mr. RAN- ican people have had enough of a tax Guard to rescue them when they have GEL], and the gentleman from Mary- system that is secretive, adversarial, trouble at sea. They pay nothing in land [Mr. CARDIN], who worked so hard and unfair. Let us start making change corporate income taxes. on our side, with the gentleman from happen. Let us make it fair today for So it is simply not fair to allow that Ohio, [Mr. PORTMAN] and others to do working people, and let us start today to happen. We need to follow up this this, and this truly is a bipartisan bill. and let us get our friends in the other great first step with the closing of the I strongly support this bill to reform body to follow the lead of this biparti- loopholes that allow the big guys to the Internal Revenue Service. In my san group to make historic change in get off scot-free. view, we are taking an important step our Tax Code. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10035 Mr. PORTER. Mr. Speaker, I yield 1 mittee on Ways and Means concerning Mr. RANGEL. Mr. Speaker, I yield 30 minute to the gentleman from Penn- governance. seconds to the gentleman from Nevada sylvania [Mr. FOX]. I believe that the Constitution re- [Mr. ENSIGN]. Mr. FOX of Pennsylvania. Mr. Speak- quires that the IRS Commissioner be The SPEAKER pro tempore. The gen- er, I thank the gentleman for yielding appointed, hired, and, if necessary, tleman from Nevada [Mr. ENSIGN] is me this time. fired by the President. The legislation recognized for 31⁄2 minutes. Many individuals have experienced today before us keeps the President ul- (Mr. ENSIGN asked and was given enforcement powers of the IRS at their timately responsible for the actions of permission to revise and extend his re- worst. Reports by GAO uncovered tales the IRS and the decisions of its Com- marks.) told by many taxpayers of unfair, un- missioner. The Department of Treasury Mr. ENSIGN. Mr. Speaker, this bill ruly, and sometimes illegal treatment would still have a role in the oversight that we have before us today is brought by IRS employees toward taxpayers de- and management of the IRS. A key forth in a bipartisan fashion. I would manding additional taxes and even component of the bill is taxpayer like to recognize my colleagues on the seizing property for payment of taxes rights. These provisions will provide Committee on Ways and Means, the that could not effectively be chal- new protections and assistance to mil- gentleman from Ohio [Mr. PORTMAN] lenged without substantial investment lions of taxpayers. I support the overall and the gentleman from Maryland [Mr. of time and money on the part of the goals of this legislation. CARDIN]. They have done outstanding taxpayer. Let me relate two concerns. First, I work. This is a very good bill, and I Thankfully, beginning in 1996, the am concerned about the authority think we are hearing a lot of reasons why this is a good bill today. But the gentleman from Ohio, [Mr. PORTMAN], given to a newly created oversight and the gentleman from Nebraska Sen- board. This oversight board has the au- American people have been way ahead of the Congress for many, many years. ator BOB KERREY, were appointed to thority to review and approve strategic cochair a bipartisan commission to plans of the IRS, and review and ap- They have recognized how intrusive study and make recommendations to prove the Commissioner’s plans for the IRS has been. In my city of Las Vegas, the IRS is Congress about suitable reforms. H.R. major reorganization. Under this bill, viewed almost like the KGB or Gestapo 2676 is a result of that commission. eight private sector individuals would was once viewed in other countries. I can say to my colleagues, this bill have this authority. This is not necessarily the fault of in- will prohibit specific Government offi- The bill is not clear on what happens to our tax administration system dividual IRS employees. This is the cials from requesting that the IRS con- under these new board authorities if a fault of the U.S. Congress and the duct or suspend an audit, stop fishing consensus is not reached among the Presidents of past, who have passed an expeditions by the IRS, require prob- board members, or if the IRS Commis- incredibly complex Tax Code. able cause for IRS investigations, di- sioner and Treasury Secretary disagree Former Representative Sam Gibbons rect the Treasury to study the imple- with the views of private sector indi- said, in a retreat that we had a couple mentation of a paper-free tax system, viduals. of years ago, that there was no single extend confidentiality privileges, pro- Second, I am concerned about the Member of Congress more responsible vide statutory rules governing inno- provision in the shift of burden of than he himself was for messing up our cent spouse relief, change the burden of proof. This bill provides for the burden Tax Code. That was because every sin- proof to the IRS and not the taxpayer, of proof to be raised to the Secretary of gle time that they tried to reform the and finally, an oversight board. All of the Treasury in any court proceeding Tax Code, because of all the special in- this makes this bill one worthy of pas- with respect to factual issues if the terest groups that we have up here, it sage in a bipartisan fashion. taxpayer asserts a reasonable dispute gets more complex. And the more com- b 1315 with respect to the taxpayer’s income plex it is, the more incentive there is for the IRS to do some of the shenani- Mr. RANGEL. Mr. Speaker, I yield liability. The shift in the burden of proof could gans that they do. 31⁄2 minutes to the gentleman from result in unintended consequences. It I said before that the American peo- Massachusetts [Mr. NEAL], a member of could result in the IRS conducting ple are way ahead of the Congress. The the Committee on Ways and Means. more intrusive examinations, and the American people are demanding not Mr. NEAL of Massachusetts. Mr. IRS issuing more subpoenas and more tax reform, but tax replacement. Every Speaker, I thank the gentleman for summonses to third parties in search of place I go around my district, people yielding me this time. evidence. This provision could induce are saying, we have to lower the tax Mr. Speaker, while I rise in support taxpayers simply not to keep records. rates. As we are replacing the Tax of the Internal Revenue Service Re- Our tax system is voluntary, and we Code, we have to address this issue. structuring and Reform Act of 1997, I have an overall compliance rate of 85 That issue is the issue of fairness. We also want to temper my support with a percent, the envy of much of the indus- have to define exactly what fair is. couple of warnings. While this legisla- trialized world. The individual nonbusi- During hearings in front of the Com- tion would restructure the Internal ness compliance rate is 97.5 percent. mittee on Ways and Means a couple of Revenue Service to provide better The individual business compliance years ago, I asked Jack Kemp, the gen- oversight, greater continuity of leader- rate is 70 percent, and the shift of bur- tleman from Texas, [Mr. DICK ARMEY] ship, improved access to expert advice den of proof could indeed, if we are not and the gentleman from Missouri, [Mr. from the private sector, and additional careful, make it worse. DICK GEPHARDT] what their definition management flexibility, I also think Mr. Speaker, the IRS conducts more was. Jack Kemp and the gentleman that there are potential difficulties on than 2 million audits each year, but from Texas, [Mr. DICK ARMEY], said, the horizon. only about 30,000 cases reach court an- when everybody is treated the same. There has long been an agreement on nually. This provision could have more The definition of the gentleman from the need for fundamental reform of the far-reaching consequences. It could Missouri, [Mr. DICK GEPHARDT] was, IRS, and I certainly commend the work help aggressive taxpayers avoid tax- based on your ability to pay. of the National Commission on Re- ation. We should make it easier for That means if somebody works twice structuring the IRS. I support a major- taxpayers to deal with the IRS, but I as hard, you have a farmer over here ity of the recommendations made by do not think we should make it easier who works twice as many hours a the National Commission, and I am for taxpayers to evade taxes. This pro- week, happens to make twice as much certainly pleased that further improve- vision needs to be improved, because money because they work twice as ments have been made to the addi- those who voluntarily comply with our hard, they should be penalized by pay- tional legislation introduced by the tax system simply deserve more. ing a higher tax rate than the farmer gentleman from Ohio [Mr. PORTMAN] Mr. PORTMAN. Mr. Speaker, I yield over here who does not work quite as and the gentleman from Maryland [Mr. 3 minutes to the gentleman from Ne- hard. CARDIN]. They have worked diligently vada [Mr. ENSIGN], a very valued mem- Mr. Speaker, we need to have a fair to modify their original bills to reflect ber of the Committee on Ways and Tax Code in America that does not pe- the concerns of many of us on the Com- Means. nalize people who work harder, who H10036 CONGRESSIONAL RECORD — HOUSE November 5, 1997 make the sacrifices necessary to be has been obscured, that the enhanced tleman from New York, Mr. CHARLIE successful. In America we have been taxpayers’ bill of rights has always en- RANGEL, played a very important role about rewarding success in the past. joyed broad support in a bipartisan as a bridge between the Congress and Let us get back to where success is manner. In fact, the very first Tax- the Clinton administration. treated in a manner that we want more payer bill of rights was enacted some This is a very comprehensive and am- people to try to achieve it, like we do years ago, and I believe this should be bitious package of reforms. Members in school. We do not penalize people for an ongoing process. have heard a lot of people talk about getting A’s in school. We should not pe- Finally, I believe the legislation is it. As such, it is the product of a lot of nalize people for wanting to be entre- significantly improved over the earlier hard work by a lot of good people: preneurs, for wanting to create jobs in versions, and all members of the Com- Members and staff of the IRS Sub- America, for wanting to be successful mittee on Ways and Means worked on committee on Oversight, chaired by themselves. this. But I believe it can require fur- the gentlewoman from Connecticut, This is the fundamental issue that we ther improvement, particularly in the Mrs. NANCY JOHNSON, who did a tre- have to get to, not only today, by re- area of burden of proof and conflict of mendous job on taxpayer rights, elec- forming the way the IRS works, but interest. tronic filing and other committee is- truly to get to overall tax replacement For instance, in committee the gen- sues; the full Committee on Ways and with a fair, simple, lower tax rate and tleman from California [Mr. STARK] of- Means staff, many of whom are here tax system. fered an amendment to preclude IRS today; the Joint Tax Committee staff, Mr. RANGEL. Mr. Speaker, will the board members from representing cli- Ken Kies and others; the Government gentleman yield? ents before the IRS. Unfortunately, Reform and Oversight Committee had Mr. ENSIGN. I yield to the gen- this amendment did not pass. I think jurisdiction over this, and they helped tleman from New York. as Members look at this, as other Mem- us on this. Mr. RANGEL. Mr. Speaker, I would bers in the body look at this, this could Regarding the Committee on Appro- ask one question, which is, basically, be remedied, because this obviously priations, the gentleman from Mary- how long would the gentleman say, as will cause conflict down the line. land, Mr. STENY HOYER, talked earlier a new member of the committee, it I support this, and am glad this bill about the appropriators. The gen- would take to draft this legislation to has been improved. It certainly was tleman from Arizona, Mr. JIM KOLBE, bring it to the committee and to pass needed, and I hope everybody listened and the gentleman from Maryland, Mr. this new tax that the gentleman and learned from the lessons of the STENY HOYER, had a lot of input into wants? How long would it take to do it? Senate hearings. this process, as did their staffs; and fi- Mr. ENSIGN. Mr. Speaker, as we Mr. PORTMAN. Mr. Speaker, I yield nally, the Committee on the Budget have seen going through the commit- myself such time as I may consume. and the Committee on Rules. Both of tee, the administration is against re- Mr. Speaker, I would like to say that those committees also had jurisdiction placing the income tax as we know it, this is an historic moment. We are con- over parts of this comprehensive legis- based on their testimony from the sidering landmark legislation today. It lation. Committee on Ways and Means. is the first time in 45 years that we Also, I give thanks to the many out- Mr. RANGEL. Mr. Speaker, I would have attempted as a Congress to enact side groups who spent a lot of time like to reword my question. Forget the fundamental reforms at the IRS. working on this legislation and gave us administration. The gentleman is in I want to start by thanking the gen- valuable input. Then, when we had a the majority. He has the majority of tleman from Texas, Mr. BILL ARCHER, good package together, they went out the votes. How long would it take for chairman of the Committee on Ways and sold it to their members, the peo- him to get a bill passed? and Means, not just on behalf of me, ple at the grass roots. The National Mr. Speaker, I yield 2 minutes to the but really on behalf of the millions of Taxpayers Union, Americans for Tax gentlewoman from Connecticut [Mrs. Americans who will be positively af- Reform, the NFIB, the Chamber, Citi- KENNELLY], a member of the commit- fected by this legislation, the tax- zens Against Government Waste, and tee. payers. For the past year and a half he yes, the tax preparer community again Mrs. KENNELLY of Connecticut. Mr. has consistently supported this reform gave us valuable input and helped us to Speaker, I rise in support of this IRS effort; first, the bipartisan National put that together. They work closely reform. Let there be no doubt that IRS Commission on Restructuring the IRS with the taxpayers and the IRS every abuses will not be tolerated. Many of that I cochaired, and then the legisla- day. They know this will help. That is the unfortunate situations that were tion that came out of that Commis- why they are supporting it. brought forth by the Senate hearings sion. Special thanks to people who were are already improper or illegal under It was the gentleman from Texas, Mr. there from the beginning, to each the law, and obviously should not be BILL ARCHER who made this the Com- member of the National Commission tolerated. mittee on Ways and Means’ top prior- on Restructuring the IRS, including There also, unfortunately, was some- ity for the fall. It was he who moved it my cochair, of course, Senator BOB thing we found out that happened, that expeditiously for the floor. We would KERREY of Nebraska; but also our col- there was some kind of pervasive at- not be here having this debate today if league Senator CHUCK GRASSLEY of mosphere in some of the offices that it were not for his support. Iowa, and the gentleman from Penn- tied advancement to collection. As a I also want to thank my cosponsor, sylvania, Mr. BILL COYNE; the Commis- result, throughout the offices, if you the gentleman from Maryland, Mr. BEN sion staff; and finally, to my own per- did not collect, you did not get ad- CARDIN. He worked with me on this leg- sonal staff, who have gone well beyond vanced. This moved on to the point islation long before it was fashionable the call of duty. that common courtesy and common on his side of the aisle. He looked at The Commission conducted a year- sense were forgotten. This also cannot the legislation carefully, independ- long audit of the IRS and made specific be tolerated. I think these hearings ently. He judged the bill on its merits, legislative recommendations for have brought this forth. rather than listening to, frankly, the change. It was successful, I think, for Having said that, I do also want to critics in the administration and oth- two reasons. First, we kept politics out mention that there are many, many, ers. He actually took the time to study of it. In fact, we brought expertise in. many thousands of people working for it himself. He stood up for what he be- The people who were represented on the IRS that were carrying out their lieved in. As a result, he improved the the Commission brought the kind of duties in a courteous and common- final product. expertise to bear that we needed to sense manner. We should recognize I want to commend the gentleman solve the real problems at the IRS. that. However, the bureaucracy abso- from New York, Mr. CHARLIE RANGEL, Commission members not only in- lutely should know that their day is senior Democrat on the Committee on cluded a former IRS Commissioner, the over. Ways and Means, who I think today as heads of the New York and California I would also like to point out that in I have heard him talk has just joined State tax systems, but also a small all of the debate of this issue, one fact the Scrap the Code Tour. But the gen- businessman, a representative of the November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10037 people who work at the IRS, tech- Much of the media attention has fo- member, this troubled agency touches nology experts, taxpayer advocates. cused on the oversight board, what is more Americans than any other Fed- And the Commission did its home- often overlooked, is that we actually eral entity. Today, all of us as tax- work. We conducted 15 days of hearings give the IRS commissioner more payers are the real winners. in and out of Washington, interviewed power, more tools to be able to manage Mr. Speaker, I reserve the balance of all the senior level IRS managers, and the agency, to get the job done day-to- my time. for the first time ever actually con- day. Mr. RANGEL. Mr. Speaker, I yield ducted interviews with 300 on-line IRS We give the commissioner a 5-year myself such time as I may consume. employees to find out from them what term so the commissioner’s respon- I would like to take some time to the problems were. Finally, we listened sibilities go beyond any single adminis- again congratulate the gentleman that carefully to the concerns and stories of tration. We also give the commissioner just spoke, not just because of the ex- the taxpayers who foot the bill. the ability to bring in his or her own pertise that he brought in perfecting a After our year-long audit, we ended team of senior managers. Charles bill, but his ability to reach across the up with more than 50 specific reform Rossotti was just confirmed by the aisle to make it very easy for the mem- recommendations for the most com- Senate this week. I think he will be a bers of the committee to at least take prehensive overhaul of the agency good IRS commissioner. He brings a look at what he is talking about. since 1952. The IRS Restructuring and management experience and informa- I notice a provision that is very close Reform Act before us today takes these tion technology experience that is to the gentleman, and that is the tax recommendations and, I think, im- badly needed. We need to give him complexity analysis that he spoke proves on them. Others have given a these tools because without them, about in the well. I would like to yield good overview of the bill. Let me just frankly, he is going to have a very dif- to the gentleman to respond. If this touch on a view of the points. ficult job doing what he wants to do, was an existing law, how would this b 1330 which is to turn the IRS around and apply to the bill that was reported out First, while this effort focuses on make it a taxpayer service organiza- of our committee? Mr. PORTMAN. Mr. Speaker, will the making the tax collection system work tion. much better, not the Internal Revenue Taxpayer rights. If Members saw the gentleman yield? Mr. RANGEL. I yield to the gen- Code itself, the commission found, as Senate Committee on Finance hear- tleman from Ohio. many of my colleagues have discussed ings, they know that we do need new Mr. PORTMAN. Mr. Speaker, I think today, that we also need to simplify rights in legislation for taxpayers. The if this had been in place, we would have our Tax Code. We take the first step in bill provides us 28 specific new tax- had a better tax bill enacted this sum- doing that in this legislation. payer rights, like allowing taxpayers We do so by putting in place new leg- to recover damages when the IRS does mer by the U.S. Congress. I think we islative incentives for tax simplifica- something wrongful, like the burden of would have known more about what tion as compared to every other incen- proof shift we have heard about from the complexities are, not just for the tive around here which is for more the gentleman from Ohio [Mr. TRAFI- taxpayer but for the tax collection complexity. We also force the IRS to be CANT] and others, like protecting inno- agency. at the table to tell us what a great- cent spouses from IRS harassment. All Mr. RANGEL. Well, I do not want to sounding new tax legislative proposal of these are extremely important. They get involved in how the bill came to is going to result in, in terms of new compliment the other provisions of the the floor, but the gentleman is asking tax schedules, time for the taxpayer to bill. the people that are responsible for fill them out, and work for the IRS. Very importantly, this legislation doing what we tell them to do. We are The bill also targets Congress by con- also creates a new system within the the ones that made their job difficult, solidating and streamlining congres- IRS to evaluate employees. Again, it and the gentleman and I agree on that, sional oversight. There are now seven has been overlooked by many, but this and so does the chairman. We have committees that give the IRS advice. is one of the most fundamental changes beat up on them because they did it We streamline it, and we force these in terms of changing the culture at the poorly, but it was our complex legisla- committees to come together and to IRS. The new system would evaluate tion that they had to administer. send a clear and consistent and single employees and managers not on the The gentleman and I are now seeking message to the Internal Revenue Serv- amount of money, taxes, they collect, to improve the Code after, as the mum- ice from Capitol Hill. but on the degree to which they are blers would say on the floor, after 37 The overall thrust of this bill is to providing good service to the taxpayer. years of Democratic fiascoes. We have make service to the taxpayer, not It also puts in place unprecedented had a similar extension of 3 years of heavy handed enforcement, but service personnel flexibility to allow IRS man- Republican fiascoes. Now we are say- to the taxpayer the top priority of the agers to promote folks who are doing a ing, let us clean it up. I share with the IRS. It does so in a number of ways. good job within the agency and, yes, to gentleman that unless we attempt to Importantly, it dramatically increases fire the bad apples at the agency. This do this in a bipartisan way, it will be IRS accountability for getting the job is called reinventing government. We America that loses. done by establishing a more effective are not just talking about it today, we I just want to compliment the gen- IRS oversight body. are actually passing legislation to do tleman for the direction that he is You have heard other Members talk so. Again, along with the other re- going. I hope when we say we have to about the oversight board today. The forms, this is what is going to change work together to scrap the Code, as the important thing is that it brings exper- the culture at the IRS. gentleman likes to say, or to pull up tise to the IRS that is absolutely need- There are many other key provisions the IRS by the roots, that we are talk- ed and is not there now. Second, it pro- in this legislation: Establishing new fi- ing about pulling up this Tax Code by vides continuity, stability of leader- nancial accountability to force the IRS the roots and replacing it with some- ship, so that over time we actually to balance its own books; knocking thing that is fair and equitable. We have changes that are going to work down barriers to electronic filing, cannot agree unless we see what the for the taxpayers so we are not up here which is a win-win for the taxpayer and gentleman is talking about. For 3 3 or 4 or 5 years from now discussing the IRS; and, finally, making the tax- years, I have not seen it. But I look the same problems. payer advocate truly independent so forward to working with the gen- With this input from nongovern- that that taxpayer advocate is indeed tleman, hoping that the other side, mental experts to hold the IRS respon- an independent advocate for the tax- while they are talking about scrapping, sible for answering the phones, getting payer. pulling up, and getting rid of, would the computers to work, ensuring that Taken as a whole, these legislative give us something to work with. IRS employees are trained, and, yes, changes, this whole package, will cre- Mr. Speaker, I yield 2 minutes to the treating taxpayers more courteously, ate a new IRS that treats the taxpayer gentleman from Michigan [Mr. LEVIN], with more respect, we will have a new with respect, gives the taxpayer the a distinguished member of the Com- IRS. service they deserve. We have to re- mittee on Ways and Means. H10038 CONGRESSIONAL RECORD — HOUSE November 5, 1997 (Mr. LEVIN asked and was given per- problem was given to the top account- tice where a taxpayer has to prove his mission to revise and extend his re- ing firms in the United States and innocence as far as the amount of taxes marks.) asked them to take this example and, that are owed in order to prove his case Mr. LEVIN. Mr. Speaker, I thank the from this, to devise an income tax re- and the IRS really does not have to gentleman for yielding me the time. turn and to figure the tax liability prove anything. This is bringing about I rise in support of this bill. It is a from that set of circumstances that fairness, and for the first time the bur- positive step in the direction of restor- were given. Out of the many tax pre- den of proof will be on the IRS. ing and increasing confidence in a sys- parers that participated in this experi- This is a tremendous bill. This is a tem that relies on taxpayer compliance ment, not one of them came up with first step. I want to say, it is only a to be successful. It addresses the re- the same tax liability. It was not even first step in ripping out the entire Code sponsibility that both the Congress and close. It was thousands and thousands to reform the Code and perhaps even the administration must play in im- of dollars apart. It just shows the tre- give us the opportunity, the historic proving the accountability and cus- mendous complexities of the Tax Code opportunity, to take, eliminate the in- tomer service of an agency, as said and the problems that they have. come tax as we know it today and, in here, that touches the lives of nearly During the debate on the floor, I its place, put another type of revenue all Americans. know it has been going back and forth collection for the Federal Government The bill contains a number of provi- as to the complexities that were put that will be fairer, easier to admin- sions which will reform the IRS. It will into the Tax Code and whether the ister, and much easier and fairer in improve the use of technology at the Democrats or Republicans did it. I do being able to enforce by the Federal IRS by enhancing the electronic filing not think that makes any difference. It Government. of tax returns and other documents. It is this Congress that is bringing about Again, my compliments for all of is unacceptable in this day and age the correction and is bringing it about those who put this bill in place. It cer- that the IRS does not have the most in a bipartisan way, as a beginning, I tainly is, I think, a very, very good day up-to-date computer technology. would say, as a beginning. in the history of the U.S. House of Rep- It will expand taxpayer relief for the Under the new rules that we have im- resentatives. innocent spouse and provide tax refund posed upon ourselves, when we give b 1345 relief to taxpayers during periods of somebody a tax break, we have got to Mr. RANGEL. Mr. Speaker, I yield disability. It will also expand relief to work in revenue somewhere else in the myself such time as I may consume. taxpayers through taxpayer assistance Code. What has this developed over the Mr. Speaker, let me associate myself orders, grants for low-income clinics, years? It has developed a patchwork with the remarks of the gentleman and penalty relief for those who have quilt. It has provided for us a real mess from Florida [Mr. SHAW] that we have installment agreements with the IRS. that is going to take a lot of effort, a in a bipartisan way moved forward in The revised bill also retains the ac- lot of bipartisan effort, to straighten trying to correct the abuses and better countability of the administration over out. the collection of taxes. I do not see the IRS by retaining the President’s The only way to do it is to try to get anything in this bill that deals with authority to hire and fire the IRS com- together and to at least get some bi- the simplification, even though there is missioner. partisan support. It is not going to be hope that this bipartisan spirit will This bill is an important step in ad- complete. There will be a lot of con- continue. dressing critical management and troversy when it finally goes. But this I have been invited to join this Scrap oversight issues at the IRS, but it is Code has to be ripped up by the roots. the Code trip, and I accept. Let us not a panacea. There remain some is- Now, this is going to balance the scrap it. But I think they ought to, sues in this legislation that we need to playing field as far as the Internal Rev- anyone that is going to join with them continue to work on. I have met with enue Service for the taxpayers. This is in this effort, to at least talk about IRS officials in Michigan to discuss tremendously important. The Internal what they are going to replace it with. problems, and I intend to continue to Revenue Service should be more of a There are just as many different views do so. service rather than a policeman in on their side as there is on our side. We do need to look at the Tax Code watching over the taxpayers. But I do not think it is fair to the itself and debate differences of opinion But in doing this, it is just basic fair- American people, as political as it may about how to improve it. In doing so, ness. We do not want to give the police sound, to promise them that they are the aim must be to benefit the citizens in this country a criminal code that is getting rid of this complex Tax Code, that we represent, not to jockey for po- so complicated that they do not know which none of us are proud of, and not sition at the next election. how to administer it or to enforce it, tell them what they are replacing it Mr. PORTMAN. Mr. Speaker, I yield but yet we have done this with the IRS. with. 5 minutes to the gentleman from Flor- To make it worse, we have provided Mr. PORTMAN. Mr. Speaker, will the ida [Mr. SHAW], chairman of a sub- that the taxpayer has no privacy or gentleman yield? committee of the Committee on Ways right of confidentiality with their CPA. Mr. RANGEL. I yield to the gen- and Means and former CPA and recov- In this regard, I think it is most im- tleman from Ohio. ering lawyer, who added a great deal to portant that when somebody is talking Mr. PORTMAN. Mr. Speaker, the this legislation. to their tax preparer, when they are gentleman from New York [Mr. RAN- Mr. SHAW. Mr. Speaker, I thank the going over all their books and records, GEL] just said that there is nothing in gentlemen for yielding me this time. that they know that their tax preparer this legislation with regard to sim- I would like to congratulate the gen- is not going to be called in and ques- plification. As the gentleman from New tleman and the gentleman from Mary- tioned because he has no particular York [Mr. RANGEL] is aware, there is land [Mr. CARDIN], the gentleman from rights of confidentiality. This particu- for the first time ever in this legisla- Texas [Mr. ARCHER], and the gentleman lar bill will correct this situation and tion the requirement that my col- from New York [Mr. RANGEL] for get- let the taxpayer have confidence, the league or I or anybody else who has a ting together and bringing such a won- same confidence that he has in dealing new tax idea has to subject it to this derful bill that is long past due to the with his lawyer, and that is only fair. simplification analysis. And if we do floor of this Congress. I think one of the other big things in not do that, my colleague or I or any I think perhaps the most shivering this bill that other Members have other Member can raise a point of words that anybody can hear is the talked about today but is tremen- order on the floor of the House. knock on the door or the phone call or dously important, it puts the burden of This is not the flat tax. It is not the the letter that starts out, I am from proof on the IRS instead of the tax- sales tax. It is not scrapping the code the IRS, because of the complexity of payer. and starting over. But it is a first the Tax Code and the problems in- I remember in studying the Tax Code small, baby step in the right direction, volved in filing one’s own return. as a student in college and at law because every incentive now, as my Not too many years ago, I think it school that it always was confusing to colleague knows, goes the other way, was just 2 years ago, an accounting me how we could have this sense of jus- and he talked about it earlier. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10039 Mr. RANGEL. When this reaches the changes performance standards so peo- turn will also now be afforded tax re- President’s desk, let us, my colleague ple are rated on the basis of how well lief. and I, talk about that provision. they serve the public rather than how Let me conclude, Mr. Speaker, by ex- Mr. Speaker, I yield 2 minutes to the strictly they enforce the law. It creates plaining parts of IRS reform legisla- gentleman from North Carolina [Mr. an oversight board of citizens. It cre- tion, the Taxpayers Justice Act of 1997, PRICE]. ates a taxpayers’ advocate. It creates that I intend to offer in the legislation. Mr. PRICE of North Carolina. Mr. accountability, Mr. Speaker. And that It provides for a true taxpayer’s citi- Speaker, like other Members, I have is why I support the measure. zen’s advocate located in IRS regions helped many, many constituents re- Mr. RANGEL. Mr. Speaker, I yield 2 throughout the Nation, serving as a solve disputes with the Internal Reve- minutes to the gentlewoman from watchdog over the IRS. Additional pro- nue Service. Texas [Ms. JACKSON-LEE]. visions relating to eliminating dis- In one case earlier this year, a Ra- [Ms. JACKSON-LEE of Texas asked crimination in the workplace and solv- leigh man trying to make good on his and was given permission to revise and ing unfair tax burdens put on the di- back taxes was not told that he had the extend her remarks.) vorced spouse. option of setting up a payment plan. Ms. JACKSON-LEE of Texas. Mr. Mr. Speaker, I include the following Instead, the IRS placed a lien on his Speaker, I thank the gentleman from for the RECORD: bank account. In another case, a New York [Mr. RANGEL] for yielding me Mr. Speaker, I rise today in support of re- woman who had set up a payment plan the time, and I thank the committee forming the Internal Revenue Service to make and made every payment on time re- for its leadership. it more efficient, accountable, modern and tax- ceived notice that her plan had been The discussion that we have had on payer friendly. This is the call from the con- canceled and her entire balance was the floor today emphasizes that we stituents of the 18th Congressional District in due within 2 weeks. have come now full circle to recognize Texas that I heard when I recently held a town Fortunately, I was able to help these that concerns by citizens about the hall forum on IRS abuses of taxpayers. constituents. But not every taxpayer is IRS are well-founded. Although we pay The stories of coercion, corruption and able to come to their Member of Con- tribute to those hard-working Internal scare tactics of IRS agents that I heard were gress. We need to fix the system for ev- Revenue Service employees that work more than enough for me to prepare for intro- erybody. We need to restructure the day after day doing their job, it is im- duction of my own IRS reform bill. Entitled the IRS. We need to do away with tax col- portant that we now in a bipartisan ``Taxpayer Justice Act of 1997'' it has many of lection quotas. We need to revise rigid manner reform the IRS. I think that is the provisions that are being offered today in rules. And we need to set customer important. this comprehensive reform bill. service oriented collection policies This is not a Republican piece of leg- My bill called for civil and criminal penalties that are geared toward assisting tax- islation. It is not a Democratic piece of if there is a finding of abuse of taxpayer's payers in complying with the law rath- legislation. In fact, I would like to see rights. Therefore, I can endorse the opening er than punishing them. more things being done. But I am here up of the Government for civil liability for tax- H.R. 2676 is based on the rec- to generally speak to the fact that we payer abuse. This bill would extend the liability ommendations of the bipartisan Na- are, at least, doing something. And I of the government for IRS abuse caused by tional Commission on Restructuring will continue to review H.R. 2676, along those who may negligently diregard our tax the IRS. It will strengthen taxpayer with its many amendments, to deter- laws. This is a safeguard that I know tax- rights and modernize the administra- mine its adaptability to the concerns payers are demanding and one that I strongly tion of the IRS. The new IRS Oversight that I have. support. Board, made up of a majority of private First of all, I held a hearing with The establishment of an independent over- sector professionals, will have the au- constituents in my district in Houston sight board by the President is another provi- thority to eliminate collection quotas where they testified to many examples sion in my bill as well. There is no doubt that and measure performance by the qual- of problems with the IRS. The story of such oversight of the administrative functions ity of service that agents provide. a doctor who was obviously not leaving of the IRS is necessary after the disclosure of Mr. Speaker, passage of H.R. 2676 will town, and who attempted to resolve his the atrocities that I heard and the stories that restructure the IRS and pave the way problems with the IRS; when an IRS came forward from the citizens in Houston. for further reform and simplification of agent came into his office to physically There were, in fact, cases of possible suicide the Tax Code. I urge my colleagues to remove him from his medical practice over the tactics that were used and it is time vote for this long overdue legislation. while he was attending to his patients to end such abuses. The oversight board will Mr. PORTMAN. Mr. Speaker, I yield and then to further close down his have the responsibility to review and advise 1 minute to the gentleman from Mon- doors. What about the law enforcement the Secretary of the Treasury about customer tana [Mr. HILL]. officer, wounded and injured and in his service measures that will make sense. Such Mr. HILL. Mr. Speaker, I rise in hospital bed, only to find out that his oversight is necessary if we are to make the strong support of the Portman- house had been foreclosed on and other IRS more efficient. McCrery reform of the IRS. tragic situations happening while he Shifting the burden of proof to the IRS is an- Mr. Speaker, nothing evokes greater was recuperating from a job injury. other practical measure that makes good fear in the heart of taxpayers, in the These are the kinds of grievances that sense and one that is in my bill as well. In hearts of small business owners than we face all the time. every other proceeding where the government does a notice from the IRS. Men and I am delighted that we are looking at is moving against a citizen in a court of law, women who obey the law, follow the opportunities, for example, to move the the government bears the burden of proving rules, and respect their responsibilities burden of proof so that taxpayers in the facts. It is high time that the IRS come in to collect and report and pay taxes IRS court cases are considered inno- line with this time-honored tradition of the gov- have great fear of the IRS. cent until being proven guilty. I am in- ernment bearing the burden of proving any Why is it that law-abiding people fear terested, of course, in the oversight factual issue it is asserting in a court of law. this organization? Well, the reason is, board. I think that has great possibili- This burden of proof will be enforced after what we saw in the Senate hearings ties. And certainly I am concerned the taxpayer has fully cooperated with the IRS just a few days ago, reported abuses by about the fairness of IRS audits. The with respect to the factual issue. A taxpayer the employees in the IRS and abuses in common law privilege of attorney-cli- would be required to provide access to the in- terms of how the IRS is oriented to- ent privilege for those authorized to formation, witnesses and documents within the ward dealing with the public. We do practice before the IRS will now be af- control of the taxpayer. This makes the pro- not need hearings in the House of Rep- forded, as it should be to persons—tax ceeding more in line with every other court resentatives to know that the IRS is advisors—representing taxpayers be- proceeding and makes it fair. frequently causing great conflict for fore the IRS. It will also end the use This bill would also correct meaningful taxpayers. and abuse of summons by the IRS in measures that will insure taxpayer fairness in H.R. 2676 is a good start because it fo- looking for documents. A spouse who IRS audits and collection activities. The com- cuses on serving the public and serving may be innocent for the mistakes of mon law privilege of attorney-client privilege taxpayers rather than enforcement. It another spouse in preparing a tax re- for those tax advisors authorized to practice H10040 CONGRESSIONAL RECORD — HOUSE November 5, 1997 before the IRS will now be afforded as it Fowler Linder Rohrabacher have recorded their presence by elec- Fox Lipinski Ros-Lehtinen should be. It would also end the use and Franks (NJ) Livingston Rothman tronic device, a quorum. abuse of summons by the IRS in looking for Frelinghuysen LoBiondo Roybal-Allard Under the rule, further proceedings documents. Under this bill the IRS would be Frost Lofgren Royce under the call are dispensed with. required to make reasonable inquiries and Gallegly Lowey Rush f Ganske Lucas Ryun could not issue a summons until it has used Gejdenson Luther Sabo INTERNAL REVENUE SERVICE RE- other reasonable methods to ascertain where Gephardt Maloney (NY) Salmon Gibbons Manton Sanchez STRUCTURING AND REFORM ACT the information it is seeking may be. OF 1997 The bill also provides for making more infor- Gilchrest Manzullo Sanders Gillmor Martinez Sandlin The SPEAKER pro tempore. In the mation available to the taxpayers. It requires Gilman Mascara Sanford the IRS to print and make available to tax- Goode Matsui Sawyer debate on H.R. 2676, the gentleman 1 payers explanations that make sense and clar- Goodlatte McCarthy (MO) Saxton from New York [Mr. RANGEL] has 7 ⁄2 Goodling McCarthy (NY) Scarborough minutes remaining and the gentleman ify a variety of complicated matters. Married Gordon McCollum Schaefer, Dan from Ohio [Mr. PORTMAN] has 61⁄4 min- taxpayers will be alerted to liabilities that they Goss McCrery Schaffer, Bob would be jointly liable for even though only Graham McDermott Schumer utes remaining. The Chair recognizes the gentleman one spouse earned the income. Granger McGovern Scott Green McHale Sensenbrenner from New York [Mr. RANGEL]. A spouse who may be innocent for the mis- Greenwood McHugh Serrano Mr. RANGEL. Mr. Speaker, I yield takes of another spouse in preparing a tax re- Gutierrez McInnis Sessions myself such time as I may consume. turn will also now be afforded relief from tax Gutknecht McIntyre Shadegg Hall (OH) McKeon Shaw b 1415 liability, interest and penalties. Now a spouse Hall (TX) McKinney Shays who has nothing to do with the preparation of Hamilton McNulty Sherman I rise in support of H.R. 2676. First, I the return is fully liable for the mistakes. This Hansen Meehan Shimkus would like to thank the chairman of Harman Meek Sisisky wrong and would be corrected by this bill. Hastert Menendez Skaggs the Committee on Ways and Means for Again, Mr. Speaker, it is high time that we Hastings (FL) Metcalf Skeen creating an atmosphere which allowed have the IRS reform that the American people Hastings (WA) Mica Skelton the gentleman from Maryland [Mr. have been calling for. I support this bill and Hayworth Millender- Slaughter CARDIN] and the gentleman from Ohio Hefley McDonald Smith (NJ) urge my colleagues to vote for it. Hefner Miller (CA) Smith (OR) [Mr. PORTMAN] to take the best that Mr. PORTMAN. Mr. Speaker, I ask Herger Miller (FL) Smith (TX) came out of the commission, not only the gentleman from New York [Mr. Hill Minge Smith, Adam to work with it in a bipartisan way, Hilleary Mink Smith, Linda RANGEL] if he has any additional Hilliard Moakley Snowbarger but to bring it to Members who did not speakers? Hinchey Mollohan Snyder serve on the commission so that they Mr. RANGEL. Mr. Speaker, I have no Hinojosa Moran (KS) Solomon would be able to work and improve speakers at this time. Hobson Moran (VA) Souder upon it. Hoekstra Morella Spence f Holden Murtha Spratt The administration has had strong Hooley Myrick Stabenow objections over the original document. CALL OF THE HOUSE Horn Nadler Stark This could have been played up politi- Hostettler Neal Stearns cally that the President was trying to Mr. PORTMAN. Mr. Speaker, I move Houghton Nethercutt Stenholm a call of the House. Hulshof Neumann Stokes protect the status quo, but the Sec- Hunter Ney Strickland retary of Treasury was not only in- A call of the House was ordered. Hutchinson Northup Stump The call was taken by electronic de- volved in the meetings but encouraged Hyde Norwood Stupak to know that no Republican and no vice, and the following Members re- Inglis Nussle Sununu sponded to their names: Istook Oberstar Talent Democrat was locked in concrete ex- Jackson (IL) Obey Tanner cept to the extent that the IRS needed [Roll No. 576] Jackson-Lee Olver Tauscher improvement and it had to be done and ANSWERED ‘‘PRESENT’’—407 (TX) Ortiz Tauzin Jefferson Oxley Taylor (MS) it was going to be done now. Abercrombie Brown (FL) Davis (VA) Jenkins Packard Taylor (NC) The Democratic Leader, the gen- Ackerman Brown (OH) Deal John Pallone Thomas tleman from Missouri [Mr. GEPHARDT], Aderholt Bryant DeFazio Johnson (CT) Pappas Thompson publicly said that they were not there, Allen Bunning DeGette Johnson (WI) Parker Thornberry Andrews Burr Delahunt Johnson, E. B. Pascrell Thune that the Democrats were not there, ex- Archer Burton DeLauro Johnson, Sam Pastor Thurman cept to join with our Republican Armey Buyer DeLay Jones Paul Tiahrt friends to get a bipartisan solution to a Bachus Callahan Dellums Kanjorski Paxon Torres Baesler Calvert Deutsch Kaptur Payne Towns serious problem. Baker Camp Dickey Kasich Pease Traficant So, Mr. Speaker, we are here today Baldacci Campbell Dicks Kelly Pelosi Turner for the first time in a long time know- Ballenger Canady Dingell Kennedy (MA) Peterson (MN) Upton ing that we have taken one gigantic Barcia Cannon Dixon Kennedy (RI) Peterson (PA) Velazquez Barr Cardin Doggett Kennelly Petri Vento step forward to give some small com- Barrett (NE) Carson Dooley Kildee Pickering Visclosky fort to the taxpayer that at least we, in Barrett (WI) Castle Doolittle Kilpatrick Pickett Walsh the Congress, are providing the over- Bartlett Chabot Doyle Kim Pitts Wamp sight to try to make the collection Barton Chambliss Dreier Kind (WI) Pombo Waters Bass Chenoweth Duncan King (NY) Pomeroy Watkins easier. Bateman Christensen Dunn Kleczka Porter Watt (NC) But, Mr. Speaker, we all agree that Becerra Clay Edwards Klink Portman Watts (OK) this is only a first step. We cannot give Bereuter Clayton Ehlers Klug Poshard Waxman Berman Clement Ehrlich Knollenberg Price (NC) Weldon (FL) a very complicated, complex Tax Code Berry Clyburn Emerson Kolbe Pryce (OH) Weldon (PA) to anybody and expect them not to Bilbray Coble Engel Kucinich Quinn Weller have problems in its execution. If any- Bilirakis Coburn English LaFalce Radanovich Wexler one abuses their rights as a public serv- Bishop Collins Ensign LaHood Rahall Weygand Blagojevich Combest Eshoo Lampson Ramstad White ant with the taxpayer, that person Bliley Condit Etheridge Lantos Rangel Whitfield should be pulled up at the roots and Blumenauer Conyers Evans Largent Redmond Wicker got rid of. There should be no excuse Blunt Cook Everett Latham Regula Wise Boehlert Costello Ewing Lazio Reyes Wolf for any public servant treating tax- Boehner Cox Farr Leach Rivers Woolsey payers in a disrespectful way. But Bonilla Coyne Fattah Levin Rodriguez Wynn there should be no excuse for us to Bonior Cramer Fazio Lewis (CA) Roemer Young (FL) talking about pulling up the IRS by Bono Crane Filner Lewis (GA) Rogan Borski Crapo Flake Lewis (KY) Rogers the roots unless we are prepared to say Boswell Cummings Foglietta we are going to pull up the Tax Code by Boucher Cunningham Foley b 1413 Boyd Danner Forbes the roots. Brady Davis (FL) Ford The SPEAKER pro tempore (Mr. And I would want to say this, that if Brown (CA) Davis (IL) Fossella PEASE). On this rollcall, 407 Members we can get this Portman-Cardin spirit November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10041 of cooperation going, let us try to do it though the IRS admitted that Bob’s the lives of every single American. We in talking about this bus trip that is grandfather owed only $700, not $7,000, must look the IRS in the eye and say it going to pull up the Code by the roots, they would not refund the balance of is not their money, it is the people’s and I ask whether or not there is an the money. money. The politicians and the IRS extra seat on that bus that I can join Mr. McGill was senile and had made must stop reaching into the people’s in. The only thing I would want to the same mistake before by adding wallets, taking from them what the know is, where is the bus going, what is extra zeros to checks mistakenly and people have earned and what they need the itinerary, how much is it going to overpaying his bills by thousands of for themselves. cost, and, most importantly, when is it dollars. But in these instances where So, Mr. Speaker, the bill we will vote going to end? This bus that has been his local hospital and pharmacy were on today represents more than fixing pulling up the Tax Code by the roots overpaid, they sent the money back. the IRS. The bill is about our values, has been in a bus depot for 3 years. The IRS would not. our principles, our convictions. It is If we are going to do anything to cor- Bob’s family fought the IRS for 8 about right and wrong; it is about put- rect the system, and God knows we years all the way to the U.S. Supreme ting taxpayers first. agree it has to be simplified, let us try Court. A 3-year statute of limitations As the first chairman of the Commit- to do this too in a bipartisan way, the prevented the IRS from returning the tee on Ways and Means in memory who same way we have been so successful in money that was not theirs in the first continues to do his own tax return, recognizing a problem and trying to place said the Court. And while it is and, I must say, in longhand, not by bring a resolution. too late to help Bob and his family, the computer, I can say today to the Amer- Finally, Mr. Speaker, I would want bill that we vote on today allows the ican people, with this vote we heard to say that I would encourage the ad- IRS finally to waive the statute of lim- them, we understand them, we know ministration to take a lesson from the itations on refunds for the sick and the what they are going through, we are on books of the House of Representatives disabled, ensuring that no other Amer- their side. They are the producers, they and not only just support this, but to ican will have to go through what the make things happen, we should follow encourage the other body not to politi- Brockamp family went through. in Washington, and that is what this cize this issue. Mr. Speaker, the U.S. Congress owes bill is all about. So instead of thanking We are moving swiftly, we are mov- Bob and his family an apology. The each other, we should say thanks to ing swiftly toward the end of our legis- last thing an ailing senior citizen and the American people who have made lative business for this year. It would their family should have to do is worry this the greatest country on the face of do us no good to compliment each about the IRS. Thanks to the good the Earth. other for this bipartisan effort if the fight that Bob and his family waged to Ms. EDDIE BERNICE JOHNSON of Texas. other body is not on board. We all obtain justice, thousands of taxpayers Mr. Speaker, today the House considered leg- know that next year something chemi- in the future will worry no more. islation to reform and restructure the Internal cally is going to take over us as we all And, Mr. Speaker, I am delighted the Revenue Service. The House voted over- seek reelection. I would suggest that it President has finally seen the light and whelmingly to approve this reform legislation is more important to get this impor- decided to support this bill. The gen- and I also voted for the bill. I did have con- tant piece of legislation passed than to tleman from Ohio [Mr. PORTMAN], the cerns over a proposed shift of the burden of give other people an opportunity to gentlewoman from Connecticut [Mrs. proof but I feel that the provision was changed make political hay out of it. JOHNSON], and the gentleman from enough to ensure that the Government's I conclude by thanking the leader- Maryland [Mr. CARDIN] worked long hands would not be tied when going after tax ship on both sides of the aisle, again, and hard to put it together, and, as we evaders and those who commit tax fraud. the gentleman from Ohio [Mr. have heard today, they deserve much The congressional hearings on the IRS not PORTMAN], the gentleman from Mary- praise. only opened the public's eyes to intimidation land [Mr. CARDIN], and those Members But, Mr. Speaker, in the end our task and harassment by a small number of IRS who worked so hard, not to get their is not to thank each other for what we agents and supervisors, the hearings have names in the newspaper or to have TV do today. Our thanks should go to the also motivated Congress to offer a large num- interviews, but to do what was best for American people, the people who sent ber of bills that seek to change the way that the country and what was best for the us here. Today’s vote is a victory for the IRS does business. Internal Revenue Service, but most im- all Americans who believe Washington I admit that the IRS has a few employees portantly, what was in the best inter- should not change its ways to greater who abuse their power, forgetting that they are ests of American taxpayers. and greater power but should change servants to the public, not masters of it. I can Mr. Speaker, I yield back the balance its ways so the American people will also personally attest to the fact that there are of my time. not have to change theirs. problems in the manner in which the IRS con- Mr. PORTMAN. Mr. Speaker, I yield Congress no longer solves problems ducts audits and undertakes collection. How- the balance of my time to the gen- by raising taxes, as was true for too ever, Mr. President, I am afraid that the anti- tleman from Texas [Mr. ARCHER], the many Congresses. We now solve prob- IRS rhetoric being employed by some in Con- chairman of the Committee on Ways lems by restoring hope, power, and op- gress has unfairly attacked and tainted the and Means, and, as I said earlier this portunity to the people who pay the majority of hardworking and honest IRS em- afternoon, we would not be here on the taxes. ployees and is negatively affecting their mo- floor this afternoon debating this criti- Mr. Speaker, I am proud to add that rale and productivity. cal issue if not for the gentleman from fixing the IRS continues a remarkably Mr. Speaker, I am honored to have a large Texas, [Mr. ARCHER]. productive record for this Congress. We number of hardworking and honest IRS em- Mr. ARCHER. Mr. Speaker, I thank cut taxes and passed legislation to bal- ployees in my district at the IRS Mid-States the gentleman from Ohio for yielding ance the budget, we saved Medicare Regional Office. this time to me. But before I close, from bankruptcy, and we fixed the Mr. Speaker, those employees are not there is one person here who deserves failed welfare state. We cut the cost of afraid of a new debate on the role of the IRS. very special recognition, and that is the Congress of the United States by They are not frightened by calls for reform and Bob Brockamp of Prescott, AZ, who is $200 million a year, and now we are fix- making their fellow workers more accountable the personification of an IRS victim. ing the IRS. We reduced the deficit to the taxpayers. What they are concerned He and his family have suffered an in- from $203 billion in November of 1994 to about is that they are being unfairly singled justice that no one should endure. $30 billion today. More than 5 million out and negatively portrayed as unfit, In 1994, 93-year-old grandfather Stan- new jobs have been created, interest uncaring, and unprofessional employees of the ley McGill mistakenly sent a $7,000 rates have dropped from 8 percent to 6 Government. check to the IRS. Unfortunately, by percent, and the stock market has vir- As Congress continues to consider more the time Bob and his family caught the tually doubled. IRS reform initiatives, which now number be- error and tried to get their money But mark my words, we are just tween 10 and 11, we must be careful and re- back, the 3-year statute of limitations warming up. I believe we must com- sponsible with both our words and actions. We on refunds had expired, and even pletely and totally get the IRS out of must be sensitive to how our words affect H10042 CONGRESSIONAL RECORD — HOUSE November 5, 1997 those who are truly committed to public serv- control. Rather than serving taxpayers, IRS the IRS, incorporating increased input from the ice. bureaucrats too often make Americans feel private sector while protecting the overall in- I have heard from some of my constituents like slaves to the government. We know that tegrity of the agency. In addition, this bill con- who work for the IRS and I am truly con- IRS managers established audit goals for their tains provisions designed to strengthen the cerned about the morale of these dedicated employees to advance in the agency. In other rights of the American taxpayer when con- and good employees as a result of the ex- words, IRS employees performance was eval- fronted by the IRS, including a long overdue tremely negative rhetoric which well-inten- uated by the amount of money extracted from shift of the burden of proof within the U.S. Tax tioned lawmakers have used to describe the taxpayers, not by dealing with the merits of Court from the taxpayer to the agency. Cer- operation of the agency. each individual taxpayer's return. IRS employ- tainly, our tax laws, like the rest of our judicial Mr. Speaker, we must remember that most ees came before Congress only under the system, should be based on the presumption IRS employees want to work withÐand have condition of anonymity because they feared that a citizen is innocent until proven guilty. worked withÐlawmakers to bridge the gap be- retribution by their colleagues. Taxpayers from While I support these much needed tween the IRS and the taxpayer. all over the United States told stories of intimi- changes to improve the responsiveness and Mr. Speaker, today I rose in favor of sen- dation and clear abuses of power exercised by efficiency of the IRS, we must not forget that sible, well-thought out reform of the Internal IRS agents. It is clear that many IRS employ- many of the problems this legislation seeks to Revenue Service but I ask that we truly focus ees were living up to their ignominious reputa- remedy have their roots in the Internal Reve- on reform, not rhetoric. tion. nue Code itself, which continues to grow in At the same time, I stand to support those To the credit of IRS employees, they do complexity with each new tax law passed by great employees at the IRS midstates regional have a difficult job. The Internal Revenue Congress. Even the important tax cut passed office in Dallas. They believe in public service, Code is thousands of pages of ambiguous earlier this session as part of the balanced customer service, and accountability to tax- laws and regulations which can be interpreted, budget agreement added hundreds of addi- payers. They are patriotic and deserving of and often is, any number of ways. This is one tional pages to the Internal Revenue Code. I our respect and thanks, not our rhetoric and of the reasons I have argued for so many believe our next step must be to thoroughly disdain. years that Congress must scrap the current re-evaluate the overall Tax Code and begin a Mr. KILDEE. Mr. Speaker, I rise today to ex- tax code and replace it with a flat tax that ap- meaningful dialog on alternatives to the cur- press my strong support for H.R. 2676, the In- plies the same tax rate to all Americans simply rent system. ternal Revenue Service Restructuring and Re- and fairly. Mr. Speaker, I urge all of my colleagues to form Act. I believe everyone would agree that Although this bill does not replace the Tax support the legislation before us today which Code, I believe the reforms proposed in the commonsense reform of the IRS has been will ensure that, within the current tax struc- bill, including the establishment of the over- long overdue. ture, the American taxpayer will receive fairer sight board will go a long way in addressing Mr. Speaker, over the years, I have had and more efficient treatment by the Internal some of the problems at the IRS. Now, citizen many constituents call my Michigan offices to Revenue Service and I look forward to work- board members will sit in judgment of the IRS complain about problems with the IRS. In fact, ing with my colleagues on both sides of the for a change. I am also encouraged that this each year, I work with our local IRS office to aisle in exploring options for streamlining the bill will, in many circumstances, shift the bur- put together a tax assistance night where IRS Tax Code. den of proof from the taxpayer to the IRS. employeers actually work directly with tax- Ms. HOOLEY of Oregon. Mr. Speaker, it's While thieves, murderers, and rapists are in- payers to address their questions. time to overhaul the Internal Revenue Serv- nocent until proven guilty in America, tax- This bipartisan legislation will set up a new iceÐthe most inefficient and the least user- payers are assumed guilty by the IRS until citizen oversight board and make the IRS friendly Government agency in America. more accountable to average Americans. Most they prove themselves innocent. I know my If any Member of this Congress still has Democrat friend JIM TRAFICANT has worked importantly, this bill will ensure that the sacred doubts about legislation to overhaul our Na- tirelessly on this issue and has made the point principle of innocent until proven guilty is ex- tion's tax collecting agency, they should con- that it took a Republican Congress to actually tended to every hard-working, honest Amer- sider two cases of IRS abuse that I have been get this provision put into law. I have proudly ican. confronted with in the last few months. The supported him in his efforts over the years and This bill is the critical first step to ensuring first involves a woman whose bank account thank him for his work. that our tax system remains both fair and eq- I also want to mention some of the other re- was frozen because her ex-husband died uitable to all working individuals and families. forms in this bill. Specifically, the bill will allow owing a tax debt that he had accumulated That is why I urge my colleagues to support taxpayers to get reimbursed for attorney's fees after the couple's divorce. The second in- H.R. 2676. when they prevail against the IRS. Another volves a single mother who is working her way Mr. CRANE. Mr. Speaker, I rise in support provision will extend the privilege of confiden- through college. The IRS lost the rebate check of H.R. 2676, the Internal Revenue Service tiality to conversations with tax accountants she was owed. The check was deposited in Restructuring and Reform Act. who provide the same tax advice that tax at- someone else's bank account, and 8 months First, I would like to compliment my Ways torneys provide. The bill will also protect inno- later she still hasn't gotten her moneyÐlet and Means colleague, Mr. PORTMAN, who cent spouses from tax liability on joint returns alone the interest she would have earned on served as a cochairman of the IRS restructur- when they are unaware of misstatements or the refund. ing commission, for his work on this issue. I misreporting made by the other spouse. These women are representative of the myr- also want to thank our chairman, BILL ARCHER, Mr. Speaker, clearly the American people iad of miscalculations and errors which have for the prompt committee action on the IRS are eager to have these reforms. I am glad to plagued the IRS in recent years. My district is commission recommendations. see that President Clinton finally got that mes- not alone in facing an out of control IRS, natu- My office regularly assists my constituents sage and has agreed to support this bill. I rally, and the difficulties that have cost these who have had problems dealing with the IRS urge all my colleagues to support H.R. 2676 two women money, time, and peace of mind and I am quite familiar with the frustrations of and I hope that we can soon see it enacted are repeated daily with alarming regularity taxpayers dealing with this agency. Of course, into law. around the country. opposition to paying taxes and a mistrust of Mr. DAVIS of Florida. Mr. Speaker, today I Reform of this beleaguered agency can no government is ingrained in Americans. Before rise in support of H.R. 2676, the Internal Rev- longer be postponed, and I believe that the our war of independence, colonists showed enue Service Restructuring and Reform Act, IRS Restructuring and Reform Act accom- their disapproval of a British tax with the Bos- an important first step in restoring the Amer- plishes this task in a fair, efficient and biparti- ton tea party. After the Revolution, Americans ican taxpayer's faith both in the tax system san manner. Once this bill becomes law, I am took on our newly formed government with the and in the ability of their government to be ef- confident that taxpayers will soon be blessed whiskey rebellion. While we have not wit- ficient and responsive to their needs. This leg- with a fairer, more user-friendly Internal Reve- nessed similar events in recent history, the islation, stemming largely from the Kerry- nue Service. IRS is easily the most hated agency of the Portman Commission's recommendations, rep- Mr. PACKARD. Mr. Speaker, common Federal Government. But the hatred of the resents true bipartisan cooperation to address sense tells me that the IRS is far too large IRS is not just the hatred of taxes, but a genu- the growing concerns of citizens and their and intrusive. Consider that the IRS has more ine fear of the seemingly unchecked power elected representatives over the management than 136,000 employees, while the INS has the IRS wields over taxpayers. and activities of the IRS. only 6,500 border patrol agentsÐabout 20 Congressional hearings this year have dem- H.R. 2676 makes substantial improvements times more people to take our money than to onstrated that the IRS is an agency out of to both the oversight and the management of protect our borders. That is simply outrageous. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10043 Today, the House will consider the IRS Re- ney-client confidentiality privilege to account- the abusive activities of the Internal Revenue structuring and Reform Act. This legislation ants and others authorized to practice before Service were revealed. These activities in- will enact 28 new protections that enhance the IRS. cluded collection quotas and ``financial status'' taxpayer rights when citizens become involved These protections build on the existing Tax- audits, utter lack of service, and the personal in IRS dispute and will effectively shift the bur- payer Bill of Rights, which Congress enacted and economic devastation of innocent and de- den of proof from the taxpayer to the IRS in in 1996 with my support. The 1996 law cre- cent taxpaying citizens. court proceedings. By leveling the playing field ated an Office of Taxpayer Advocate at the The American people heard from IRS between honest citizens and an out of control IRS to investigate taxpayer complaints about agents testifying behind privacy screens with Government agency, the American taxpayers IRS enforcement actions. That law also raised their voices altered telling about which inno- come up the big winners. the penalties for IRS employees who reck- cent taxpayers they selected for audits, name- Mr. Speaker, all people want is a fair sys- lessly and intentionally disregard the Internal ly, those who didn't have the resources to fight tem. In America, that should never be too Revenue Code when dealing with taxpayers. back. We also heard how just getting a ques- much to ask for. Nobody should be made to The legislation also places new limits on tion answered could become a tiresome proc- feel like a criminal for trying to do the right penalties to taxpayers for repayment of back ess for a taxpayer. And furthermore, that only thing. The IRS has terrorized everyone from taxes. It reduces the maximum penalty for 25 21 percent of the calls the IRS receives are retirees, homemakers, single-parent families, percent of the unpaid amount, plus interest, to even answered, and, of those, too many are and even a Little League girls softball team. 9.5 percent for taxpayers who reach a pay- answered incorrectly. In 1993 alone, the IRS We need to put an end to that. ment agreement with the IRS. Another change gave 81¤2 million wrong answers to taxpayers Republicans hope this is the first step to- would equalize interest penalties for underpay- trying to comply with Byzantine tax regula- ward a comprehensive overhaul of the current ment and overpayment of taxes. Currently, the tions. Tax-Code and elimination of the IRS alto- IRS charges taxpayers a higher interest rate Mr. Speaker, we all recognize that there are gether. We are now clearly on our way to as a penalty for underpayment than the IRS it- thousands of hardworking employees at the eliminating the IRS and its code altogether. self pays when it owes taxpayers for overpay- IRS that do their job well. But while it is under- More and more inside-the-beltway critics, in- ments. This is unfair and should be changed. standable that extracting $1.5 trillion from cluding the President, are simply getting out of Together, these changes will save taxpayers American taxpayers by enforcing a tax code the way as Republicans move this agenda for- more than $1.2 billion over 5 years. thousands of pages long is no easy task, the ward. Those who have defended the IRS in The IRS has the critical job of enforcing our bottom line is that the IRS' mistreatment of the past realize this is a battle they just can't tax laws and raising revenue, but there is no taxpayers must be stopped. win. I encourage all of my colleagues to sup- reason why it cannot treat taxpayers more like Mr. Speaker, the solution to curbing IRS port the IRS Restructuring and Reform Act. customers and less like potential criminals. abuses has two parts. Mr. BENTSEN. Mr. Speaker, I rise today in Government employees, including those at the First, the IRS must be reformed. H.R. 2676 support of H.R. 2676, legislation to reform the IRS, are providing an honorable service to the is the first comprehensive reform legislation of Internal Revenue Service and better protect public, but they must always remember it is the Internal Revenue Service since 1952. This the rights of taxpayers. I am proud to be a co- the public for whom they work. That is what bill will restructure the IRS by forming a nine- sponsor of this legislation. The need for this we do with this legislation Congress is about member oversight board, made up of private legislation could not be more clear after the to approve. citizens, with real authority to hold the IRS ac- recent Senate Finance Committee hearings Mr. GALLEGLY. Mr. Speaker, I would like to countable for change. that exposed IRS practices that are abusive to express my strong support for restructuring New taxpayer rights would be enacted, in- taxpayers and simply unacceptable for a Gov- the Internal Revenue Service. cluding the right to sue for negligence, collect ernment agency. These hearings rightly an- We have heard time and again the horror legal fees and be notified of the reasons for gered most Americans, including myself. They stories taxpayers have experienced at the an audit. The Taxpayer Advocate's Office also added to the finding of the National Commis- hands of this ruthless agency. H.R. 2676 lev- would be strengthened, and, most significant, sion on Restructuring the IRS that found the els the playing field between taxpayers and the burden of proof in tax disputes would be agency to be woefully mismanaged and the IRS and reins in its ominous power. The shifted from the taxpayer to the IRS. Taxpayer plagued by computerization problems and Portman-Archer reform bill protects the tax- service would become a top priority of the IRS poor customer service. payers and restores their rights. and the practice of evaluating employees and These hearings and the commission's find- Holding the IRS accountable to the tax- IRS offices on collection results would be pro- ings make it imperative that Congress act payers is a complete reversal from how the hibited. quickly to reform the IRS to improve its man- system currently operates. This legislation pro- Second, now is the time to begin a national agement, make it more customer-friendly, and hibits IRS employees and IRS units from debate on reforming the current tax system by better protect the rights of taxpayers. being evaluated based on enforcement re- making it fairer and simpler. Put bluntly, we This legislation shifts the burden of proof sults, but rather requires evaluations be based need a system that the American people can from taxpayers to the IRS in disputes in civil on the quality of taxpayer service they provide. comprehend. Several competing plans have tax court proceedings. Last year, approxi- Moreover, H.R. 2676 creates an independent already been proposed. They include plans for mately 30,000 cases went to tax court. Under board to oversee the IRS, taking control from a flat income tax, a retail consumption tax or the legislation, taxpayers would still be re- political appointees at the Treasury Depart- a value-added tax. This most important debate quired to back up claims with documentation, ment and giving the board real power and au- must be taken directly to the American people but the court would no longer presume that thority to hold the IRS accountable for a to get their ideas and suggestions for change. the IRS is correct when the facts are in dis- change. Mr. Speaker, for 60 years Washington pute. The reforms also include the unprecedented patched together a tax code so complex that It also creates an independent 11-member shift of the burden of proof from the taxpayer it threatens the basic fairness of the system. board to oversee IRS management and de- to the IRS, and, it enhances taxpayer rights Through the many loopholes built into the velop strategy for the agency. The board with 28 new protections when citizens become code, individuals pay vastly different amounts would be made up of eight members from the involved in disputes with the IRS. in taxes, and, in some cases, pay no taxes at private sector, the Treasury Secretary, the IRS Mr. Speaker, fixing the IRS is no simple all. For this very reason, the American people commissioner, and a representative of the IRS task, but this legislation is the first step in pro- have become cynical about our tax system. employees union. tecting taxpayers and the complete overhaul Genuine tax reform and simplification, and It expands the existing Taxpayer Bill of of our tax system. It's time the IRS was ac- comprehensive reform of the IRS, is the only rights by creating 28 new taxpayer protections. countable to the American public, not the way to restore faith in a system that has for these rights will allow taxpayers to sue the other way around. too long been unworthy of our trust. IRS for up to $100,000 in damages if IRS Mr. FRELINGHUYSEN. Mr. Speaker, I rise Mr. CALVERT. Mr. speaker, I rise today in agents are negligent when trying to collect today in support of H.R. 2676, the Internal support of HR 2676, legislation to restructure taxes; makes it easier for an innocent spouse Revenue Service Restructuring and Reform and reform the Internal Revenue Service. I be- to escape liability for taxes owed by the other Act of 1997. It is time to make the Internal lieve this is the most important issue currently spouse or an ex-spouse; make more cases el- Revenue Service as accountable to the tax- being debated in households and businesses igible for resolution in a tax version of small- payer as the taxpayer is to the IRS. throughout the country. This is an enormous claims court; provide funding for clinics to help Millions of Americans are still talking about task for Congress, but one I believe we are low-income taxpayers; and extend the attor- the recent IRS hearings on Capitol Hill, where ready, willing and able to tackle. H10044 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Ever since this issue became a national de- bill also creates a new system of oversight and the electronic filing of tax returnsÐthere is bate, I have heard from many constituents that will help bring about lasting change not enough good in this bill to warrant support about their experiences with the IRS. To no throughout the organization. for it today. Some provisions are repetitions of one's surprise, the stories were filled with fear The shifting of the burden of proof to the current law or can be accomplished without and anguish and anger. I did not hear one IRS will allow the taxpayer to be innocent until change in law. positive story. This has only reinforced my be- proven guilty in disputes that come before the However, there are some serious flaws in- lief that the IRS is an agency that abuses its U.S. Tax Court if the taxpayer has cooperated cluded the bill which prevent it from achieving power and takes advantage of honest citizens. by providing the IRS access to all relevant in- the underlying goal of modernizing the IRS We have allowed our current system to be- formation and documents. By changing the and improving taxpayer service. come monstrous, unmanageable, and in some burden of proof this provision acts as a cost OVERSIGHT BOARD cases corrupt, and it is up to us to end the saving measure that will encourage the IRS to The creation of the IRS board is most trou- IRS as we know it and scrap the current tax settle more cases before proceeding with a blesome. The Government should seek the code. costly trial. expertise of private sector individuals in advi- The legislation before us today is straight- Other provisions of this bill that work to sory capacity; however, private sector individ- forward and non-partisan. This is not the de- strengthen taxpayers rights include: provisions uals should not make key decisions on critical bate about choosing between a flat tax or a which protect an innocent spouse from being aspects of IRS management, operations, and national sales tax. It is not about whether we held liable for the tax liability that are caused taxpayers service. The IRS must be directly are Republicans or Democrats. This about by mistakes made by the other spouse on tax accountable to the administration with strict representing our constituents and responding returns; allow taxpayers to sue the govern- oversight by the Congress. The board adds a to their requests for help. It is unconscionable ment for up to $100,000 in civil damages layer which reduces accountability, not en- that criminals in this country are innocent until caused by negligent IRS employees who have hances it. proven guilty, but taxpayers are not. HR 2676 violated the law; prohibit politically motivated This board is not only unwise but likely to will change this practice and finally hold the audits; provide for grants to low income tax- be ineffective. A private sector board meeting IRS accountable to taxpayers and force the payer clinics to help needy Americans in their once a month and without ability to hire staff IRS to bear the burden of proof when conduct- disputes with the IRS; and encourages elec- of its own will not ensure a better managed ing an audit. tronic filing of tax returns. IRS, or a more accountable IRS. I am committed to improving the tax code This bill reflects true compromise and I am There is a peril to privatization without clear and reforming the IRS. HR 2676 is much proud to support it. rules on conflict of interest and ethics but that needed legislation that will benefit every Amer- Mr. ADAM SMITH of Washington. Mr. is what we have before the House for consid- ican and I will be voting in favor of this much Speaker, I rise today in support of H.R. 2676, eration today. I challenge my colleagues to ex- needed reform. I urge my colleagues on both the Internal Revenue Service Restructuring plain how the union representative is sup- sides of the aisle to do the same. and Reform Act. As a proud cosponsor of this posed to navigate the conflict of interest laws; Mr. PORTER. Mr. Speaker, I am pleased bill, I also want to thank the Commission how can one person vote on key management that the House is considering legislation to re- chaired by Congressman PORTMAN and Sen- decisions while continuing to represent work- form the Internal Revenue Service. It is clear ator KERREY, along with Chairman ARCHER ers on a daily basis? that abuse of taxpayers has occurred at the and the Ranking Member of the Ways and During committee consideration, I offered an IRS and I believe that Congress should legis- Means Committee, Mr. RANGEL, for bringing amendment to impose clear prohibitions on late changes to ensure this abuse does not us to where we are today. private sector board members so that they continue. However, I also believe it is impor- I was disheartened to find that more than could not represent a client against the IRS tant that Congress take some responsibility for 150 people have contacted my office this year and so the one year post-employment restric- the adversarial attitude that exists at the IRS looking for help with the IRS. Most of those in- tions would apply to board members. The toward taxpayers. Two decades ago there was dividuals are honest, hard-working people who committee rejected this clear amendment in a a very real concern in Congress that a grow- don't mind paying their fair share of taxes, roll call vote of 14 to 23. ing number of individuals were negligent in they just want the IRS to be more helpful. The language on ethics and conflicts of in- paying their taxes. Based on this concern, Sometimes the IRS has made mistakes and terest that miraculously appears in the bill Congress encouraged the IRS to step up its admitted wrongdoing, yet the agency won't today is unclear and vague in its requirements efforts to see that taxpayers were complying correct them and adjust the taxpayer's bill. for private sector board members. As a crimi- with the law. While Congress did not direct the Other times, the taxpayer simply has ques- nal provision, it is grossly inadequate. IRS to harass or intimidate taxpayers, there tions and can't get a straight answer from the BURDEN OF PROOF was a certain degree of pressure placed on IRS. The shift in the burden of proof is an idea the agency to produce results. Unfortunately, Mr. Speaker, one of my primary goals in that sounds taxpayer friendly but will result in this resulted in a culture at the IRS which tol- Congress is to help restore people's faith and a far more intrusive IRS. erates abuse of authority. I believe that this bill trust in their government. Without public con- Former Republican Commissioner Fred will effectively correct this behavior and send fidence in our democracy, it is impossible to Goldberg stated before Ways and Means that a clear message that Congress does not con- lead this nation into the next century. This bill ``of necessity, the IRS would be forced to re- done or tolerate unfair treatment of taxpayers. to reform the IRS to make it more accountable sort to far more aggressive techniques in au- I encourage my colleagues to join together and customer-friendly is one important step diting taxpayers and developing cases.'' and support H.R. 2676. Congress must take in order to regain some of This change is a bad idea which will result Mr. FAZIO of California. Mr. Speaker, I am the public's trust in government. more record keeping requirements, more reve- proud to be a strong supporter of this legisla- This bill will make the IRS more accountable nue agents, more audits, more tax litigation. tion that will bring the first comprehensive re- by creating an outside oversight board with INFLUENCING IRS AUDITS form of the IRS since 1952. This bill brings real power to perform consistent, ongoing Lastly, it is intriguing that the bill imposes badly needed accountability, continuity, and oversight of IRS management and practices. It criminal sanctions on the President, Vice expertise to this troubled agency. will make it easier for a taxpayer to comply President, and Cabinet officials for requesting I have heard from several of my friends and with tax laws because when they request in- that the IRS conduct or terminate an audit of neighbors that have told me horror stories of formation or ask questions, they will be able to a specific taxpayer. mishandled cases and IRS agents that have get answers. Furthermore, Congress will fi- My Republican colleagues stated that they acted inappropriately. There were also the in- nally be forced to provide the oversight it has knew of no such abuse by the executive excusable examples of abuse that were ex- been so delinquent in doing. branch but they failed to apply the same crimi- posed in both the Senate and House hearings. Mr. Speaker, I urge all of my colleagues to nal laws to Members of Congress. Did my Re- All of these stories act to echo the call for re- support H.R. 2676. It is a good bill, and a very publican colleagues want to reserve the right form. important step toward restoring the public's to ask for auditsÐor pull the plug on auditsÐ This bipartisan legislation gives a com- trust in our government. with impunity? prehensive solution to the problems at the IRS Mr. STARK. Mr. Speaker, I rise in opposi- Mr. Speaker, the flaws in this bill are too se- by shifting the burden of proof in Tax court tion to H.R. 2676 which is before the House rious to merit its enactment into law. I urge my hearings from the taxpayer to the IRS and in- today. colleagues to vote no on H.R. 2676. cludes several provisions that will strengthen Though it is true that certain provisions in Mrs. FOWLER. Mr. Speaker, I rise today in taxpayers' rights in dealing with the IRS. The the bill are goodÐthe Taxpayers Bill of Rights support of reforming the IRS. We are often November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10045 cautioned around here against throwing ba- tions and rights to address many of the financial and emotional stresses which the wit- bies out with bathwater. In the case of the abuses spotlighted in congressional hearings. nesses had shared earlier with the congres- IRS, we are fast approaching the point of Our colleagues ROB PORTMAN and BEN sional panel and the viewing public. throwing out the water, the tub and everything CARDIN also deserve recognition for their I am certain my colleagues all can attest to else. sponsorship of this commission and their tire- similar battles which consumed their constitu- A complicated Tax Code, coupled with an less advocacy of its recommendations. ents' lives and resources, and in some cases out-of-control bureaucracy bent on punitive en- I believe it is important to remind our con- threatened their health. While some IRS dis- forcement instead of efficient collection has stituents that it was the Republican-led Con- tricts have been charged with especially egre- created a situation that this Congress must gress which made possible this major reform gious collection actions, it seems that the tax- address. Today's legislation is a starting point. initiative and the implementing legislation we man has spread the pain fairly evenly to con- It is going to take time to overhaul the Tax have before us today. H.R. 2676 proposes the stituents in every congressional district. Code. In the meantime, I think we all agree first major reform of the IRS since 1952. For The situation of another constituent illus- that the abuses at the IRS must stop today. three years, Republican committee heads with trates what I believe to be the single biggest This bill does just that. It levels the playing responsibility for the budget and oversight of problem with agency procedures used to settle field between the taxpayer and the tax collec- this federal agency have worked to advance outstanding tax liability. Taxpayers who owe tor, it makes customer service a priority not an this reform agenda. After weeks of congres- back taxes to the IRS, have reached a pay- anomaly, and it puts in place some common sional hearings and outrage expressed by the ment agreement and comply with the terms of sense management reforms at the agency it- American people, the media finally began re- the agreement, are still subjected to ongoing self. porting on the dark side of this Federal agen- penalties. Penalties in this instance have more This is a good first step, Mr. Speaker, in our cy. And, after weeks of resistance to the major than doubled the original outstanding tax bur- mission to create a fairer tax system for all recommendations of the National Commission den. This is ridiculous! When an agreement is Americans. I urge my colleagues to support on Restructuring the IRS, and following the negotiated with the IRS and signed, further the bill. endorsement of reform efforts by the leader of penalties should be eliminated. By ending Mr. CHABOT. Mr. Speaker, I rise in strong the House Democrats, President ClintonÐand these penalties, I also believe taxpayers would support of the Internal Revenue Service Re- the defenders of the status quo in his adminis- have greater incentive to enter into payment structuring and Reform Act. trationÐdecided they had to join this band- agreements. I agree with my constituents that I want to single out for special recognition, wagon for reform. The good news in this de- the IRS should first and foremost provide my colleague from Ohio, Mr. PORTMAN, for the bate is that a presidential veto of these impor- ``customer service,'' be guided by common tremendous work he has done over the last tant reforms appears less likely. sense regulations, and treat all taxpayers with several months on this critical issue. We in Let me repeat, this legislative priority never simple human decency. Cincinnati greatly appreciate his tireless efforts would have been identified or pursued had it I believe the solution to the problems with on behalf of all American taxpayers. not been for the landslide 1994 congressional our tax system begins with the enactment of The legislation before us this afternoon is elections which swept Republicans into control H.R. 2676, the IRS Restructuring and Reform taxpayer-friendly. It makes a number of impor- of the legislative branch of our Federal Gov- Act. The IRS Restructuring and Reform Act tant reforms in the areas of IRS daily oper- ernment. I am proud that we have made pro- would: ations, congressional oversight, and I think tection of the American taxpayers and tax re- First, create an 11-member IRS Oversight most importantly, taxpayers' rights. The legis- lief the hallmarks of our leadership. As I have Board, with 8 members who are not Federal lation recognizes the time-honored American stated before, congressional Republicans officers or employees. This board will have understanding that one is innocent until prov- need time to review the legislative mistakes of real authority to oversee the IRS and will bring en guilty by shifting the responsibility of prov- the past 40 years of Democrat control of the private sector expertise to the agency. ing one's case in tax liability disputes from the Congress. We have been working quietly to Second, encourage the use of electronic (or individual taxpayer to the Internal Revenue build the case for major reforms of the Federal paperless) filing which should dramatically re- Service. This, I believe most taxpayers would Government, and today we are seeing the fruit duce the high error rate of IRS employees agree, is a reform long overdue. of our efforts. who input incorrect numbers from paper 1040 Mr. Speaker, today's legislation is a great The recent congressional oversight hearings forms. step in the right direction. We are bringing the on IRS management problems gave the vic- Third, create a Taxpayer Bill of Rights 3, IRS under control. Next we must bring taxes tims of IRS harassment human faces and which will provide 28 new protections for tax- under control. While we have taken the first gained the national spotlight for this important payers that will enhance their rights when they steps and have legislated tax relief for working issue. These hearings also generated a great become involved in disputes with the IRS. American families, that relief will not come deal of interest among my constituents in the These protections: soon enough nor will the tax cuts be large 10th Congressional District of North Carolina. Shift the burden of proof from taxpayers to enough. The President and his free-spending In addition to a stream of calls and letters urg- the IRS in court proceedings when a taxpayer allies in the Congress have seen to that. But, ing my support in general for a package of has fully cooperated during administrative pro- notwithstanding the objections of our liberal IRS management reforms, the owner of a ceedings; allow recovery of up to $100,000 for friends, we must move forward with those ef- small business came by one of my district of- negligent IRS collection actions; allow tax- forts. The American people are taxed too fices with a letter she wanted me to pass payers to recover attorneys' fees when they much. And they will not be satisfied until we along to Chairman ARCHER. prevail against the IRS; give taxpayers easier take even larger steps to relieve them of some With painstaking detail, my constituent out- access to the tax court's equivalent of a ``small of that burden. The fruits of labor belong to lined what she and her familyÐand employ- claims court;'' expand the ability of ``innocent the working people, not to the government. eesÐearlier faced at the hands of overzealous spouses''Ðoften divorced womenÐto be re- And we will be failing in our duties to those IRS agents. The agents harassed her 77-year- lieved from liability for additional taxes which hard-working taxpayers unless we step up our old parents who are in poor health and, on the IRS determines are owed on a joint return efforts to provide them with substantial tax re- one occasion, delayed her mother's departure filed during the couple's marriage; and require lief. for a doctor's appointment. The agents even that taxpayers are given a reason for any I urge support of the legislation and I en- followed her mother to a store once and pre- audit. courage my colleagues to supplement this im- vented her from exiting her car while they Fourth, expand the oversight role by Con- portant tax reform measure with tax reduction hurled questions at her. The taxpayer's daugh- gress of the agency. legislation in the very near future. ter suffered problems at school, resulting in As a taxpayer myself, I feel these changes Mr. BALLENGER. Mr. Speaker, I rise today medical problems for both of them. After her in IRS management and procedures are long to express my full support for H.R. 2676, the employees were contacted by phone and in overdue. I welcome the opportunity to speak IRS Restructuring and Reform Act. In addition, person by agents at their homes, many were to this issue on behalf of my constituents. I I wish to praise Chairman BILL ARCHER and scared and considered looking for other work. urge my colleagues to join with me today in our colleagues on the Ways and Means Com- I agree with my constituent that these agents voting for the IRS Restructuring and Reform mittee for bringing to light endless injustices appeared to be on a mission to destroy her. Act of 1997. against the American taxpayers. H.R. 2676 Although the issue was business taxes, these Mr. PORTMAN. Mr. Speaker, I yield implements the recommendations of the year- Federal employees seemed willing to destroy back the balance of my time. long National Commission on Restructuring her personal reputation in order to collect the The SPEAKER pro tempore (Mr. the IRS and provides taxpayers new protec- taxes. Regrettably, she could identify with the PEASE). Pursuant to House Resolution H10046 CONGRESSIONAL RECORD — HOUSE November 5, 1997 303, the previous question is ordered on LaHood Ortiz Shuster ment of the bill, H.R. 2676, the Clerk of Lampson Owens Sisisky the bill, as amended. Lantos Oxley Skaggs the House be authorized to correct sec- The question is on the engrossment Largent Packard Skeen tion numbers, punctuation, and cross- and third reading of the bill. Latham Pallone Skelton references, and to make such other The bill was ordered to be engrossed LaTourette Pappas Slaughter technical and conforming changes as Lazio Parker Smith (MI) and read a third time, and was read the Leach Pascrell Smith (NJ) may be necessary to reflect the actions third time. Levin Pastor Smith (OR) of this House in amending H.R. 2676. The SPEAKER pro tempore. The Lewis (CA) Paul Smith (TX) The SPEAKER pro tempore [Mr. Lewis (GA) Paxon Smith, Adam question is on the passage of the bill. Lewis (KY) Payne Smith, Linda PEASE]. Is there objection to the re- The question was taken; and the Linder Pease Snowbarger quest of the gentleman from Ohio? Speaker pro tempore announced that Lipinski Pelosi Snyder There was no objection. Livingston Peterson (MN) Solomon the ayes appeared to have it. LoBiondo Peterson (PA) Souder f Mr. PORTMAN. Mr. Speaker, on that Lofgren Petri Spence ANNOUNCEMENT OF INTENTION TO I demand the yeas and nays. Lowey Pickering Spratt OFFER RESOLUTION RAISING The yeas and nays were ordered. Lucas Pickett Stabenow Luther Pitts Stearns QUESTION OF PRIVILEGES OF The vote was taken by electronic de- Maloney (CT) Pombo Stenholm THE HOUSE vice, and there were—yeas 426, nays 4, Maloney (NY) Pomeroy Stokes not voting 4, as follows: Manton Porter Strickland Mr. BECERRA. Mr. Speaker, pursu- Manzullo Portman Stump ant to clause 2 of rule IX, I hereby give [Roll No. 577] Markey Poshard Stupak notice of my intention to offer a reso- YEAS—426 Martinez Price (NC) Sununu Mascara Pryce (OH) Talent lution which raises a question of the Abercrombie Cook Gingrich McCarthy (MO) Quinn Tanner privileges of the House. Ackerman Cooksey Goode McCarthy (NY) Radanovich Tauscher Aderholt Costello Goodlatte McCollum Rahall Tauzin The form of the resolution is as fol- Allen Cox Goodling McCrery Ramstad Taylor (MS) lows: Andrews Coyne Gordon McDade Rangel Taylor (NC) Archer Cramer Goss Whereas, Loretta Sanchez was issued a cer- McGovern Redmond Thomas tificate of election as the duly elected Mem- Armey Crane Graham McHale Regula Thompson Bachus Crapo Granger McHugh Reyes Thornberry ber of Congress from the 46th District of Baesler Cummings Green McInnis Riggs Thune California by the Secretary of the State of Baker Cunningham Greenwood McIntosh Rivers Thurman California and was seated by the U.S. House Baldacci Danner Gutierrez McIntyre Rodriguez Tiahrt of Representatives on January 7, 1997; and Ballenger Davis (FL) Gutknecht McKeon Roemer Tierney Whereas A Notice of Contest of Election Barcia Davis (IL) Hall (OH) McKinney Rogan Torres Barr Davis (VA) Hall (TX) was filed with the Clerk of the House by Mr. McNulty Rogers Towns Robert Dornan on December 26, 1996; and Barrett (NE) Deal Hamilton Meehan Rohrabacher Traficant Barrett (WI) DeFazio Hansen Meek Ros-Lehtinen Turner Whereas the Task Force on the Contested Bartlett DeGette Harman Menendez Rothman Upton Election in the 46th District of California Barton Delahunt Hastert Metcalf Roukema Velazquez met on February 26, 1997 in Washington, D.C. Bass DeLauro Hastings (FL) Mica Roybal-Allard Vento on April 19, 1997 in Orange County, California Bateman DeLay Hastings (WA) Millender- Royce Visclosky and October 24, 1997 in Washington, D.C. and Becerra Dellums Hayworth McDonald Rush Walsh Bentsen Deutsch Hefley Whereas Mr. Dornan’s unproven allega- Miller (CA) Ryun Wamp tions and the actions of the Committee on Bereuter Diaz-Balart Hefner Miller (FL) Sabo Waters Berman Dickey Herger Minge Salmon Watkins House Oversight have resulted in an unprece- Berry Dicks Hill Mink Sanchez Watt (NC) dented attack against Latino voters and cre- Bilbray Dingell Hilleary Moakley Sanders Watts (OK) ated a chilling effect with a message to Bilirakis Dixon Hilliard Mollohan Sandlin Waxman Latinos that their votes are suspect; and Bishop Doggett Hinchey Moran (KS) Sanford Weldon (FL) Whreas the allegations made by Mr. Robert Blagojevich Dooley Hinojosa Moran (VA) Sawyer Weldon (PA) Bliley Doolittle Hobson Dornan have been largely found to be with- Morella Saxton Weller out merit: charges of improper voting from a Blumenauer Doyle Hoekstra Murtha Scarborough Wexler Blunt Dreier Holden Myrick Schaefer, Dan Weygand business, rather than a resident address; un- Boehlert Duncan Hooley Nadler Schaffer, Bob White derage voting; double voting; and charges of Boehner Dunn Horn Neal Schumer Whitfield unusually large number of individuals voting Bonilla Edwards Hostettler Nethercutt Scott Wicker from the same address. It was found that Bonior Ehlers Houghton Neumann Sensenbrenner Wise voting from the same address included a Ma- Bono Ehrlich Hulshof Ney Serrano Wolf Borski Emerson Hunter rines barracks and the domicile of nuns, that Northup Sessions Woolsey business addresses were legal residences for Boswell Engel Hutchinson Norwood Shadegg Wynn Boucher English Hyde Nussle Shaw Yates the individuals, including the zoo keeper of Boyd Ensign Inglis Oberstar Shays Young (AK) the Santa Ana zoo, that duplicate voting was Brady Eshoo Istook Obey Sherman Young (FL) by different individuals and those accused of Brown (CA) Etheridge Jackson (IL) Olver Shimkus underage voting were of age; and Brown (FL) Evans Jackson-Lee Whereas the Committee on House Over- Brown (OH) Everett (TX) NAYS—4 Bryant Ewing Jefferson sight has issued unprecedented subpoenas to Hoyer McDermott the Immigration and Naturalization Service Bunning Farr Jenkins Matsui Stark Burr Fattah John to compare their records with Orange Coun- Burton Fawell Johnson (CT) NOT VOTING—4 ty voter registration records, the first time Buyer Fazio Johnson (WI) Cubin Riley in any election in the history of the United Callahan Filner Johnson, E. B. Gonzalez Schiff States that the INS has been asked by Con- Calvert Flake Johnson, Sam gress to verify the citizenship of voters; and Camp Foglietta Jones b 1447 Campbell Foley Kanjorski Whereas the INS has complied with the Canady Forbes Kaptur So the bill was passed. Committee’s request and, at the Commit- Cannon Ford Kasich The result of the vote was announced tee’s request, has been doing a manual check Cardin Fossella Kelly of its paper files and providing worksheets Carson Fowler Kennedy (MA) as above recorded. containing supplemental information on Castle Fox Kennedy (RI) A motion to reconsider was laid on that manual check to the Committee on Chabot Frank (MA) Kennelly the table. House Oversight for over five months; and Chambliss Franks (NJ) Kildee Chenoweth Frelinghuysen Kilpatrick f Whereas the Committee on House Over- Christensen Frost Kim sight, subpoenaed the records seized by the Clay Furse Kind (WI) AUTHORIZING THE CLERK TO District Attorney of Orange County on Feb- Clayton Gallegly King (NY) MAKE CORRECTIONS IN EN- ruary 13, 1997 and has received and reviewed Clement Ganske Kingston GROSSMENT OF H.R. 2676, INTER- all records pertaining to registration efforts Clyburn Gejdenson Kleczka NAL REVENUE SERVICE RE- of that group; and Coble Gekas Klink Whereas the House Oversight Committee is Coburn Gephardt Klug STRUCTURING AND REFORM ACT not pursuing a duplicate and dilatory review Collins Gibbons Knollenberg OF 1997 Combest Gilchrest Kolbe of materials already in the Committees pos- Condit Gillmor Kucinich Mr. PORTMAN. Mr. Speaker, I ask session by the Secretary of State of Califor- Conyers Gilman LaFalce unanimous consent that in the engross- nia; and November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10047 Whereas the Task Force on the Contested dented attack against Latino voters and cre- ANNOUNCEMENT OF INTENTION TO Election in the 46th District of California ated a chilling effect with a message to OFFER RESOLUTION RAISING and the Committee have been reviewing Latinos that their votes do not count; QUESTION OF PRIVILEGES OF Whereas the allegations made by Mr. Rob- these materials and has all the information THE HOUSE it needs regarding who voted in the 46th Dis- ert Dornan have been largely found to be trict and all the information it needs to without merit: charges of improper voting Mr. MENENDEZ. Mr. Speaker, pursu- make judgments concerning those votes; and from a business, rather than a resident ad- ant to clause 2 of rule IX, I hereby give Whereas the Committee on House Over- dress; underage voting; double voting; and notice of my intention to offer a reso- sight has after over nine months of review charges of unusually large number of indi- lution which raises a question of the and investigation failed to present credible viduals voting from the same address. It was privileges of the House. found that voting from the same address in- evidence to change the outcome of the elec- The form of the resolution is as fol- tion of Congresswoman Sanchez and is pur- cluded a Marines barracks and the domicile suing never ending and unsubstantiated of nuns, that business addresses were legal lows: areas of review; and residences for the individuals, including the Whereas, Loretta Sanchez was issued a cer- Whereas, Contestant Robert Dornan has zoo keeper of the Santa Ana zoo, that dupli- tificate of election as the duly elected Mem- not shown or provided credible evidence that cate voting was by different individuals and ber of Congress from the 46th District of the outcome of the election is other than those accused of underage voting were of California by the Secretary of the State of Congresswoman Sanchez’s election to the age; and California and was seated by the U.S. House Congress; and Whereas the Committee on House Over- of Representatives on January 7, 1997; and Whereas, after nearly a year and the ex- sight, subpoenaed the records seized by the Whereas A Notice of Contest of Election penditure of over $500,000, the continued District Attorney of Orange County on Feb- was filed with the Clerk of the House by Mr. probe of the Sanchez election represents a di- ruary 13, 1997 and has received and reviewed Robert Dornan on December 26, 1996; and rect attack on Latino voters and an attempt all records pertaining to registration efforts Whereas the allegations made by Mr. Rob- to silence the voice of new citizens; and of that group; and ert Dornan have been largely found to be Whereas, the Committee on House Over- Whereas the House Oversight Committee is without merit, including his charges of im- sight should complete its review of this mat- not perusing a duplicate and dilatory review proper voting from a business, rather than a ter and bring this contest to an end: Now, of materials already in the Committees pos- resident address; underage voting; double therefore, be it session by the Secretary of State of Califor- voting; and charges of unusually large num- Resolved, That unless the Committee on nia; ber of individuals voting from the same ad- House Oversight has sooner reported a rec- Whereas the Task Force on the Contested dress. It was found that those accused of vot- ommendation for its final disposition, the Election in the 46th District of California ing from the same address included a Ma- contest in the 46th District of California is and the Committee have been reviewing rines barracks and the domicile of nuns, that dismissed upon the expiration of November 7, these materials and has all the information business addresses were legal residences for 1997. it needs regarding who voted in the 46th Dis- the individuals, including the zoo keeper of trict and all the information it needs to the Santa Ana zoo, that duplicate voting was The SPEAKER pro tempore. Under make judgments concerning those votes; and by different individuals and those accused of rule IX, a resolution offered from the Whereas the Committee on House Over- underage voting were of age; and floor by a Member other than the ma- sight has after nine months of review and in- Whereas the Committee on House Over- jority leader or the minority leader as vestigation failed to present credible evi- sight has issued unprecedented subpoenas to a question of the privileges of the dence to change the outcome of the election the Immigration and Naturalization Service House has immediate precedence only of Congresswoman Sanchez and is pursuing to compare their records with Orange Coun- at a time designated by the Chair with- never ending and unsubstantiated areas of ty voter registration records, the first time review; and in any election in the history of the United in 2 legislative days after the resolu- Whereas, Contestant Robert Dornan has States that the INS has been asked by the tion is properly noticed. not shown or provided credible evidence that Congress to verify the citizenship of voters; Pending that designation, the form of the outcome of the election is other than and the resolution noticed by the gen- Congresswoman Sanchez’s election to the Whereas the privacy rights of United tleman from California [Mr. BECERRA] Congress; and States citizens have been violated by the will appear in the RECORD at this point. Whereas, after nearly a year and the ex- Committee’s improper use of those INS The Chair will not at this point de- penditure of over $500,000, of taxpayer’s records; money, the continued probe of the Sanchez termine whether the resolution con- Whereas the INS itself has questioned the election unfairly targets Latino voters and validity and accuracy of the Committee’s use stitutes a question of privilege. That discourages their full participation in the of INS documents; and has continued to determination will be made at the time democratic process; question the validity and accuracy of the designated for consideration of the res- Whereas, the Committee on House Over- Committee’s use of INS documents; and olution. sight should complete its review of this mat- Whereas the INS has complied with the f ter and bring this contest to an end: Now, Committee’s request and, at the Commit- therefore, be it tee’s request, has been doing a manual check ANNOUNCEMENT OF INTENTION TO Resolved, That unless the Committee on of its paper files and providing worksheets OFFER RESOLUTION RAISING House Oversight has sooner reported a rec- containing supplemental information on QUESTION OF PRIVILEGES OF ommendation for its final disposition, the that manual check to the Committee on THE HOUSE contest in the 46th District of California is House Oversight for over five months; and dismissed upon the expiration of November 7, Whereas the Committee on House Over- Ms. VELA´ ZQUEZ. Mr. Speaker, pur- 1997. sight, subpoenaed the records seized by the suant to clause 2 of rule IX, I hereby The SPEAKER pro tempore. Without District Attorney of Orange County on Feb- give notice of my intention to offer a objection, the Chair’s previous ruling ruary 13, 1997 and has received and reviewed resolution which raises a question of under rule IX will be entered in the all records pertaining to registration efforts of that group; and the privileges of this House. RECORD at this point. The form of the resolution is as fol- Whereas some Members of the House Over- There was no objection. sight Committee are now seeking a duplicate lows: The text of the Chair’s prior state- and dilatory review of materials already in Whereas, Loretta Sanchez was issued a cer- ment is as follows: the Committee’s possession by the Secretary tificate of election as the duly elected Mem- Under rule IX, a resolution offered from of State of California; and which review can ber of Congress from the 46th District of the floor by a Member other than the Major- not produce a different result than that California by the Secretary of the State of ity Leader or the Minority Leader as a ques- which the Committee could produce, upon California and was seated by the U.S. House tion of the privileges of the House has imme- using the same documents; and of Representatives on January 7, 1997; and diate precedence only at a time designated Whereas the Task Force on the Contested Whereas A Notice of Contest of Election by the Chair within two legislative days Election in the 46th District of California was filed with the Clerk of the House by Mr. after the resolution is properly noticed. and the Committee have been reviewing Robert Dornan on December 26, 1996; and Pending that designation, the form of the these materials and have all the information Whereas the Task Force on the Contested resolution noticed by the gentlewoman from they need regarding who voted in the 46th Election in the 46th District of California New York will appear in the RECORD at this District and all the information they need to met on February 26, 1997 in Washington, D.C. point. make a judgment concerning those votes; on April 19, 1997 in Orange County, California The Chair will not at this point determine and and October 24, 1997 in Washington, D.C. and whether the resolution constitutes a ques- Whereas the Committee on House Over- Whereas Mr. Dornan’s unproven allega- tion of privilege. That determination will be sight has after nine months of review and in- tions and the actions of the Committee on made at the time designated for consider- vestigation failed to present credible evi- House Oversight have resulted in an unprece- ation of the resolution. dence to change the outcome of the election H10048 CONGRESSIONAL RECORD — HOUSE November 5, 1997 of Congresswoman Sanchez and is now, in from a business, rather than a resident ad- The Chair will not at this point determine place of producing such credible evidence, dress; underage voting; double voting; and whether the resolution constitutes a ques- pursuing never ending and unsubstantiated charges of unusually large number of indi- tion of privilege. That determination will be areas of review; and viduals voting from the same address. It was made at the time designated for consider- Whereas, Contestant Robert Dornan has found that voting from the same address in- ation of the resolution. after nearly one year not shown or provided cluded a Marines barracks and the domicile f credible evidence sufficient to demonstrate of nuns, that business addresses were legal that the outcome of the election is other residences for the individuals and those ac- ANNOUNCEMENT OF INTENTION TO than Congresswoman Sanchez’s election to cused of underage voting were of age; and OFFER RESOLUTION RAISING the Congress; and Whereas the Committee on House Over- QUESTION OF PRIVILEGES OF Whereas, it is the contestant’s proof of sight has issued unprecedented subpoenas to THE HOUSE burden to do so; the Immigration and Naturalization Service Whereas, the Committee on House Over- to compare their records with Orange Coun- Mr. ORTIZ. Mr. Speaker, pursuant to sight should complete its review of this mat- ty voter registration records, the first time clause 2 of rule IX, I hereby give notice ter and bring this contest to an end: Now, in any election in the history of the United of my intention to offer a resolution therefore, be it States that the INS has been asked by Con- which raises a question of the privi- Resolved, That unless the Committee on gress to verify the citizenship of voters; and leges of the House. House Oversight has sooner reported a rec- Whereas the I.N.S. has complied with the The form of the resolution is as fol- ommendation for its final disposition, the Committee’s request and, at the Commit- lows: contest in the 46th District of California is tee’s request, has been doing a manual check dismissed upon the expiration of November 7, of its paper files and providing worksheets Whereas, Loretta Sanchez was issued a cer- 1997. containing supplemental information on the tificate of election as the duly elected Mem- manual check to the Committee on House ber of Congress from the 46th District of b 1500 Oversight for over five months; and California by the Secretary of the State of Whereas the Committee on House Over- California and was seated by the U.S. House The SPEAKER pro tempore (Mr. sight subpoenaed the records seized by the of Representatives on January 7, 1997; and PEASE). Without objection, the Chair’s district attorney of Orange County on Feb- Whereas A Notice of Contest of Election previous ruling under rule IX will be ruary 13, 1997 and has received and reviewed was filed with the Clerk of the House by Mr. entered in the RECORD at this point. all records pertaining to registration efforts Robert Dornan on December 26, 1996; and There was no objection. of that group; and Whereas the Task Force on the Contested The text of the Chair’s prior state- Whereas the House Oversight Committee is Election in the 46th District of California met on February 26, 1997 in Washington, D.C. ment is as follows: now pursuing a duplicate and dilatory review of materials already in the committee’s pos- on April 19, 1997 in Orange County, California Under rule IX, a resolution offered from session by the secretary of state of Califor- and October 24, 1997 in Washington, D.C. and the floor by a Member other than the Major- nia; and Whereas Mr. Dornan’s unproven allega- ity Leader or the Minority Leader as a ques- Whereas the Task Force on the Contested tions and the actions of the Committee on tion of the privileges of the House has imme- Election in the 46th District of California House Oversight have resulted in an unprece- diate precedence only at a time designated and the committee have been reviewing dented attack against Latino voters and cre- by the Chair within two legislative days these materials and has all the information ated a chilling effect with a message to after the resolution is properly noticed. it needs regarding who voted in the 46th Dis- Latinos that their votes do not count; and Pending that designation, the form of the trict and all the information it needs to Whereas the allegations made by Mr. Rob- resolution noticed by the gentleman from make judgements concerning those votes; ert Dornan have been largely found to be New Jersey [Mr. MENENDEZ] will appear in and without merit: charges of improper voting the RECORD at this point. Whereas the Committee on House Over- from a business, rather than a resident ad- The Chair will not at this point determine sight has after over nine months of review dress; underage voting; double voting; and whether the resolution constitutes a ques- and investigation failed to present credible charges of unusually large number of indi- tion of privilege. That determination will be evidence to change the outcome of the elec- viduals voting from the same address. It was made at the time designated for consider- tion of Congresswoman Sanchez and is found that voting from the same address in- ation of the resolution. pursing never ending and unsubstantiated cluded a Marines barracks and the domicile f areas of review; and of nuns, that business addresses were legal Whereas, Contestant Robert Dornan has residences for the individuals, including the ANNOUNCEMENT OF INTENTION TO not shown or provided credible evidence that zoo keeper of the Santa Ana zoo, that dupli- OFFER RESOLUTION RAISING the outcome of the election is other than cate voting was by different individuals and QUESTION OF PRIVILEGES OF Congresswoman Sanchez’s election to the those accused of underage voting were of THE HOUSE Congress; and age; and Whereas, the privacy rights of thousands Whereas the Committee on House Over- Mr. MARTINEZ. Mr. Speaker, pursu- have been trampled with the sharing of sight has issued unprecedented subpoenas to ant to clause 2 of rule IX, I hereby give I.N.S. files with second and third parties, the Immigration and Naturalization Service notice of my intention to offer a reso- half of which were Latino surnames; to compare their records with Orange Coun- lution which raises a question of the Whereas the Committee on House Over- ty voter registration records, the first time privileges of the House. sight should complete its review of this mat- in any election in the history of the United ter and bring this contest to an end and now The form of the resolution is as fol- States that the INS has been asked by Con- therefore be it; gress to verify the citizenship of voters; and lows: Resolved, That unless the Committee on Whereas the INS has complied with the 1(b). Whereas, Loretta Sanchez was issued House Oversight has sooner reported a rec- Committee’s request and, at the Commit- a certificate of election as the duly elected ommendation for its final disposition, the tee’s request, has been doing a manual check Member of Congress from the 46th District of contest in the 46th District of California is of its paper files and providing worksheets California by the Secretary of State of Cali- dismissed upon the expiration of November 7, containing supplemental information on fornia and was seated by the U.S. House of 1997. that manual check to the Committee on Representatives on January 7, 1997; and The SPEAKER pro tempore. Without House Oversight for over five months; and Whereas A Notice of Contest of Election objection, the Chair’s previous ruling Whereas the Committee on House Over- was filed with the Clerk of the House by Mr. under rule IX will be entered in the sight, subpoenaed the records seized by the Robert Dornan on December 26, 1996; and District Attorney of Orange County on Feb- Whereas the Task Force on the Contested RECORD at this point. ruary 13, 1997 and has received and reviewed Election in the 46th District of California There was no objection. all records pertaining to registration efforts met on February 26, 1997 in Washington, The text of the Chair’s prior state- of that group; and D.C., on April 19, 1997 in Orange County, ment is as follows: Whereas the House Oversight Committee is California and October 24, 1997 in Washing- Under rule IX, a resolution offered from now pursuing a duplicate and dilatory review ton, D.C. and the floor by a Member other than the Major- of materials already in the Committees pos- Whereas Mr. Dornan’s unproven allega- ity Leader or the Minority Leader as a ques- session by the Secretary of State of Califor- tions and the actions of the Committee on tion of the privileges of the House has imme- nia; House Oversight have resulted in an unprece- diate precedence only at a time designated Whereas the Task Force on the Contested dented attack against Latino voters and cre- by the Chair within two legislative days Election in the 46th District of California ated a chilling effect with a message to after the resolution is properly noticed. and the Committee have been reviewing Latinos that their votes do not count; Pending that designation, the form of the these materials and has all the information Whereas the allegations made by Mr. Rob- resolution noticed by the gentleman from it needs regarding who voted in the 46th Dis- ert Dornan have been largely found to be California [Mr. MARTINEZ] will appear in the trict and all the information it needs to without merit: charges of improper voting RECORD at this point. make judgments concerning those votes; and November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10049 Whereas the Committee on House Over- Whereas the allegations made by Mr. Rob- Under rule IX, a resolution offered from sight has after nine months of review and in- ert Dornan have been largely found to be the floor by a Member other than the Major- vestigation failed to present credible evi- without merit: charges of improper voting ity Leader or the Minority Leader as a ques- dence to change the outcome of the election from a business, rather than a resident ad- tion of the privileges of the House has imme- of Congresswoman Sanchez and is pursuing dress; of underage voting; of double voting; diate precedence only at a time designated never ending and unsubstantiated areas of and of unusually large numbers of individ- by the Chair within two legislative days review; and uals voting from the same address. It was after the resolution is properly noticed. Whereas, Contestant Robert Dornan has found that those voting from the same ad- Pending that designation, the form of the not shown or provided credible evidence that dress included a Marine barracks and the resolution noticed by the gentleman from the outcome of the election is other than domicile of nuns, that business addresses New York [Mr. SERRANO] will appear in the Congresswoman Sanchez’s election to the were legal residences for the individuals vot- RECORD at this point. Congress; and ing, including the zoo keeper of the Santa The Chair will not at this point determine Whereas, after nearly a year and the ex- Ana zoo, that duplicate voting was by dif- whether the resolution constitutes a ques- penditure of over $500,000, the continued ferent individuals, and that those accused of tion of privilege. That determination will be probe of the Sanchez election represents a di- underage voting were of age; and made at the time designated for consider- rect attack on Latino voters and an attempt Whereas the Committee on House Over- ation of the resolution. to silence the voice of new citizens; and sight has issued unprecedented subpoenas to f Whereas, the Committee on House Over- the Immigration and Naturalization Service ANNOUNCEMENT OF INTENTION TO sight should complete its review of this mat- to compare their records with Orange Coun- ter and bring this contest to an end and now ty voter registration records, the first time OFFER RESOLUTION RAISING therefore be it; in any election in the history of the United QUESTION OF PRIVILEGES OF Resolved, that unless the Committee on States that the INS has been asked by the THE HOUSE House Oversight has sooner reported a rec- Congress to verify the citizenship of voters; Mr. GUTIERREZ. Mr. Speaker, pur- ommendation for its final disposition, the and suant to clause 2 of rule IX, I hereby contest in the 46th District of California is Whereas the INS has complied with the give notice of my intention to offer a dismissed upon the expiration of November 7, Committee’s request, and, at the Commit- 1997. tee’s request, has been manually checking resolution which raises a question of its paper files and providing worksheets con- the privileges of the House. The SPEAKER pro tempore. Without The form of the resolution is as fol- objection, the Chair’s previous ruling taining supplemental information on that manual check to the Committee on House lows: under rule IX will be entered in the Oversight for over five months; and Whereas, Loretta Sanchez was issued a cer- RECORD at this point. Whereas the Committee on House Over- tificate of election as the duly elected Mem- There was no objection. sight, subpoenaed the records seized by the ber of Congress from the 46th District of The text of the Chair’s prior state- District Attorney of Orange County on Feb- California by the Secretary of the State of ment is as follows: ruary 13, 1997 and has received and reviewed California and was seated by the U.S. House Under rule IX, a resolution offered from all records pertaining to registration efforts of Representatives on January 7, 1997; and the floor by a Member other than the Major- of that group; and Whereas A Notice of Contest of Election ity Leader or the Minority Leader as a ques- Whereas the Committee on House Over- was filed with the Clerk of the House by Mr. tion of the privileges of the House has imme- sight is not pursuing a duplicative and dila- Robert Dornan on December 26, 1996; and Whereas the Task Force on the Contested diate precedence only at a time designated tory review of materials already in the Com- Election in the 46th District of California by the Chair within two legislative days mittee’s possession by the Secretary of State met on February 26, 1997 in Washington, D.C. after the resolution is properly noticed. of California; and on April 19, 1997 in Orange County, California Pending that designation, the form of the Whereas the Task Force on the Contested and October 24, 1997 in Washington, D.C. and resolution noticed by the gentleman from Election in the 46th District of California and the Committee have been reviewing Whereas Mr. Dornan’s unproven allega- Texas [Mr. ORTIZ] will appear in the RECORD these materials and have all the information tions and the actions of the Committee on at this point. House Oversight have resulted in an unprece- The Chair will not at this point determine necessary regarding who voted in the 46 Dis- trict and all the information necessary to dented attack against Latino voters and cre- whether the resolution constitutes a ques- ated a chilling effect with a message to tion of privilege. That determination will be make judgements concerning those votes; and latinos that their votes do not count; and made at the time designated for consider- Whereas the allegations made by Mr. Rob- ation of the resolution. Whereas the Committee on House Over- sight has, after nine months of review and ert Dornan have been largely found to be f investigation failed to present credible evi- without merit: charges of improper voting dence to change the outcome of the election from a business, rather than a resident ad- ANNOUNCEMENT OF INTENTION TO dress; underage voting; double voting; and OFFER RESOLUTION RAISING of Congresswoman Sanchez and is pursuing never-ending and unsubstantiated areas of charges of unusually large number of indi- QUESTION OF PRIVILEGES OF review; and viduals voting from the same address. It was THE HOUSE Whereas, Mr. Robert Dornan has not shown found that voting from the same address in- cluded a Marines barracks and the domicile Mr. SERRANO. Mr. Speaker, pursu- or provided credible evidence that the out- come of the election is other than Congress- of nuns, that business addresses were legal ant to clause 2 of rule IX, I hereby give residences for the individuals, including the notice of my intention to offer a reso- woman Sanchez’ election to the Congress; and zoo keeper of the Santa Ana zoo, that dupli- lution which raises a question of the Whereas, the continued probe of the cate voting was by different individuals and privileges of the House. Sanchez election represents a direct attack those accused of underage voting were of The form of the resolution is as fol- on Latino voters and an attempt to silence age; and Whereas the Committee on House Over- lows: the voice of new citizens; and those who seek sight has issued unprecedented subpoenas to to organize them; and Whereas Loretta Sanchez was issued a cer- the Immigration and Naturalization Service Whereas, the Committee on House Over- tificate of election as the duly elected Mem- to compare their records with Orange Coun- sight should complete its review of this mat- ber of Congress from the 46th District of ty voter registration records, the first time ter and bring this contest to an end: now California by the Secretary of the State of in any election in the history of the United therefore be it: California and was seated by the U.S. House States that the INS has been asked by Con- Resolved, That unless the Committee on of Representatives on January 7, 1997; and gress to verify the citizenship of voters; and House Oversight has sooner reported a rec- Whereas a Notice of Contest of Election Whereas the INS has complied with the ommendation for its final disposition, the was filed with the Clerk of the House by Mr. Committee’s request and, at the Commit- contest in the 46th District of California is Robert Dornan on December 26, 1996; and tee’s request, has been doing a manual check dismissed upon the expiration of November 7, Whereas the Task Force on the Contested of its paper files and providing worksheets 1997. Election in the 46th District of California containing supplemental information on met on February 26, 1997 in Washington, b that manual check to the Committee on D.C., on April 19, 1997, in Orange County, 1515 House Oversight for over five months; and California, and October 24, 1997 in Washing- The SPEAKER pro tempore (Mr. Whereas the Committee on House Over- ton, D.C.; and PEASE). Without objection, the Chair’s sight, subpoenaed the records seized by the Whereas Mr. Dornan’s unproven allega- prior statement will appear in the District Attorney of Orange County on Feb- tions and the actions of the Committee on ruary 13, 1997 and has received and reviewed RECORD at this point. House Oversight have resulted in an unprece- all records pertaining to registration efforts dented attack against Latino voters and cre- There was no objection. of that group; and ated a chilling effect with a message to The text of the Chair’s prior state- Whereas the House Oversight Committee is Latinos that their votes do not count; and ment is as follows: not pursuing a duplicate and dilatory review H10050 CONGRESSIONAL RECORD — HOUSE November 5, 1997 of materials already in the Committees pos- on April 19, 1997 in Orange County, California The Chair will not at this point determine session by the Secretary of State of Califor- and October 24, 1997 in Washington, D.C. and whether the resolution constitutes a ques- nia; Whereas Mr. Dornan’s unproven allega- tion of privilege. That determination will be Whereas the Task Force on the Contested tions and the actions of the Committee on made at the time designated for consider- Election in the 46th District of California House Oversight have resulted in an unprece- ation of the resolution. and the Committee have been reviewing dented attack against Latino voters and cre- f these materials and has all the information ated a chilling effect with a message to it needs regarding who voted in the 46th Dis- Latinos that their votes are suspect; ANNOUNCEMENT OF INTENTION TO trict and all the information it needs to Whereas the Committee on House Over- OFFER RESOLUTION RAISING make judgments concerning those votes; and sight has issued unprecedented subpoenas to QUESTION OF PRIVILEGES OF Whereas the Committee on House Over- the Immigration and Naturalization Service THE HOUSE sight has after nine months of review and in- to compare their records with Orange Coun- vestigation failed to present credible evi- ty voter registration records, the first time Mr. REYES. Mr. Speaker, pursuant dence to change the outcome of the election in any election in the history of the United to clause 2 of rule IX, I hereby give no- of Congresswoman Sanchez and is pursuing States that the INS has been asked by Con- tice of my intention to offer a resolu- never ending and unsubstantiated areas of gress to verify the citizenship of voters; and tion which raises a question of the review; and Whereas the INS has complied with the privileges of the House. Whereas, Contestant Robert Dornan has Committee’s request and, at the Commit- The form of the resolution is as fol- not shown or provided credible evidence that tee’s request, has been doing a manual check lows: the outcome of the election is other than of its paper files and providing worksheets Whereas, Loretta Sanchez was issued a cer- Congresswoman Sanchez’s election to the containing supplemental information on tificate of election as the duly elected Mem- Congress; and that manual check to the Committee on ber of Congress from the 46 District of Cali- Whereas, after nearly a year and the ex- House Oversight for over five months; and fornia by the Secretary of the State of Cali- penditure of over $500,000, where Latinos vot- Whereas the Committee on House Over- fornia and was seated by the U.S. House of ers have been the target, due process re- sight, subpoenaed the records seized by the Representatives on January 7, 1997; and quires that this inquisition of the voters of District Attorney of Orange County on Feb- Whereas A Notice of Contest of Election California’s 46th Congressional District end; ruary 13, 1997 and has received and reviewed was filed with the Clerk of the House by Mr. and all records pertaining to registration efforts Robert Dornan on December 26, 1996; and Whereas, the Committee on House Over- of that group; and Whereas the Task Force on the Contested sight should complete its review of this mat- Whereas the House Oversight Committee is Election in the 46th District of California ter and bring this contest to an end now not pursuing a duplicate and dilatory review met on February 26, 1997 in Washington, D.C. therefore be it; of materials already in the Committees pos- on April 19, 1997 in Orange County, California Resolved, That unless the Committee on session by the Secretary of State of Califor- and October 24, 1997 in Washington, D.C. and House Oversight has sooner reported a rec- nia; and Whereas Mr. Dornan’s unproven allega- ommendation for its final disposition, the Whereas the Task Force on the Contested tions and the actions of the Committee on contest in the 46th District of California is Election in the 46th District of California House Oversight have resulted in an unprece- dismissed upon the expiration of November 7, and the Committee have been reviewing dented attack against Latino voters and cre- 1997. these materials and has all the information ated a chilling effect with a message to The SPEAKER pro tempore. Without it needs regarding who voted in the 46th Dis- Latinos that their votes are suspect; objection, the Chair’s prior statement trict and all the information it needs to Whereas the allegations made by Mr. Rob- make judgments concerning those votes; and ert Dornan have been largely found to be will appear in the RECORD at this point. without merit: charges of improper voting There was no objection. Whereas the Committee on House Over- sight has after nine months of review and in- from a business, rather than a resident ad- The text of the Chair’s prior state- vestigation failed to present credible evi- dress; underage voting; double voting; and ment is as follows: dence to change the outcome of the election charges of unusually large number of indi- Under rule IX, a resolution offered from of Congresswoman Sanchez and is pursuing viduals voting from the same address. It was the floor by a Member other than the Major- never ending and unsubstantiated areas of found that voting from the same address in- ity Leader or the Minority Leader as a ques- review; and cluded a Marines barracks and the domicile tion of the privileges of the House has imme- Whereas, Contestant Robert Dornan has of nuns, that business addresses were legal diate precedence only at a time designated not shown or provided credible evidence that residences for the individuals, including the by the Chair within two legislative days the outcome of the election is other than zoo keeper of the Santa Ana zoo, that dupli- after the resolution is properly noticed. Congresswoman Sanchez’s election to the cate voting was by different individuals and Pending that designation, the form of the Congress; and those accused of underage voting were of resolution noticed by the gentleman from Il- Whereas, nearly a year and the expenditure age; and linois [Mr. GUTIERREZ] will appear in the of over $500,000, where voters with spanish Whereas the Committee on House Over- RECORD at this point. surnames voters have been the primary tar- sight has issued unprecedented subpoenas to The Chair will not at this point determine get, due process requires that this inquisi- the Immigration and Naturalization Service whether the resolution constitutes a ques- tion of the voters of California’s 46th Con- to compare their records with Orange Coun- tion of privilege. That determination will be gressional District end; ty voter registration records, the first time made at the time designated for consider- Whereas, the Committee on House Over- in any election in the history of the United ation of the resolution. sight should complete its review of this mat- States that the INS has been asked by the f ter and bring this contest to an end: now, Congress to verify the citizenship of voters; therefore, be it and ANNOUNCEMENT OF INTENTION TO Whereas the INS has complied with the Resolved, That unless the Committee on Committee’s request and, at the Commit- OFFER RESOLUTION RAISING House Oversight has sooner reported a rec- tee’s request, has been doing a manual check QUESTION OF PRIVILEGES OF ommendation for its final disposition, the of its paper files and providing worksheets THE HOUSE contest in the 46th District of California is containing supplemental information on dismissed upon the expiration of November 7, Mr. UNDERWOOD. Mr. Speaker, pur- that manual check to the Committee on 1997. suant to clause 2 of rule IX, I hereby House Oversight for over five months; and give notice of my intention to offer a The SPEAKER pro tempore. Without Whereas the Committee on House Over- resolution which raises a question of objection, the Chair’s prior statement sight, subpoenaed the records seized by the the privileges of the House. will appear in the RECORD at this point. District Attorney of Orange County on Feb- The form of the resolution is as fol- There was no objection. ruary 13, 1997 and has received and reviewed The text of the Chair’s prior state- all records pertaining to registration efforts lows: of that group; and Whereas, Loretta Sanchez was issued a cer- ment is as follows: Whereas the House Oversight Committee is tificate of election as the duly elected Mem- Under rule IX, a resolution offered from now pursuing a duplicate and dilatory review ber of Congress from the 46th District of the floor by a Member other than the major- of materials already in the Committees pos- California by the Secretary of State of Cali- ity leader or the minority leader as a ques- session by the Secretary of State of Califor- fornia and was seated by the U.S. House of tion of the privileges of the House has imme- nia; and Representatives on January 7, 1997; and diate precedence only at a time designated Whereas the Task Force on the Contested Whereas A Notice of Contest of Election by the Chair within 2 legislative days after Election in the 46th District of California was filed with the Clerk of the House by Mr. the resolution is properly noticed. and the Committee have been reviewing Robert Dornan on December 26, 1996; and Pending that designation, the form of the these materials and has all the information Whereas the Task Force on the Contested resolution noticed by the gentleman from it needs regarding who voted in the 46 Dis- Election in the 46th District of California Guam [Mr. UNDERWOOD] will appear in the trict and all the information it needs to met on February 26, 1997 in Washington, D.C. RECORD at this point. make judgments concerning those votes; and November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10051 Whereas the Committee on House Over- without merit: charges of improper voting by the Chair within two legislative days sight has after over nine months of review from a business, rather than a resident ad- after the resolution is properly noticed. and investigation failed to present credible dress; underage voting; double voting; and Pending that designation, the form of the evidence to change the outcome of the elec- charges of unusually large number of indi- resolution noticed by the gentleman from tion of Congresswoman Sanchez and is pre- viduals voting from the same address. It was California [Mr. TORRES] will appear in the suming never ending and unsubstantiated found that voting from the same address in- RECORD at this point. areas of review; and cluded a Marines barracks and the domicile The Chair will not at this point determine Whereas, Contestant Robert Dornan has of nuns, that business addresses were legal whether the resolution constitutes a ques- not shown or provided credible evidence that residences for the individuals, including the tion of privilege. That determination will be the outcome of the election is other than zoo keeper of the Santa Ana zoo, that dupli- made at the time designated for consider- Congresswoman Sanchez’s election to the cate voting was by different individuals and ation of the resolution. Congress; and those accused of underage voting were of f Whereas, the privacy rights of thousands age; and have been trampled with the sharing of INS Whereas the Committee on House Over- ANNOUNCEMENT OF INTENTION TO files with second and third parties, half of sight has issued unprecedented subpoenas to OFFER RESOLUTION RAISING which were Latino surnames and one-third the Immigration and Naturalization Service QUESTION OF PRIVILEGES OF Asian surnames; to compare their records with Orange Coun- THE HOUSE Whereas, the Committee on House Over- ty voter registration records, the first time sight should complete its review of this mat- in any election in the history of the United Ms. ROYBAL-ALLARD. Mr. Speaker, ter and bring this contest to an end: Now, States that the INS has been asked by Con- pursuant to clause 2 of rule IX, I here- therefore, be it gress to verify the citizenship of voters; and by give notice of my intention to offer Resolved, That unless the Committee on Whereas the INS has complied with the a resolution which raises a question of House Oversight has sooner reported a rec- Committee’s request and, at the Commit- the privileges of the House. ommendation for its final disposition, the tee’s request, has been doing a manual check The form of the resolution is as fol- contest in the 46th District of California is of its paper files and providing worksheets lows: dismissed upon the expiration of November 7, containing supplemental information on Whereas, Loretta Sanchez was issued a cer- 1997. that manual check to the Committee on tificate of election as the duly elected Mem- House Oversight for over five months; and The SPEAKER pro tempore. Without ber of Congress from the 46th District of Whereas the Committee on House Over- objection, the Chair’s prior statement California by the Secretary of the State of sight, subpoenaed the records seized by the California and was seated by the U.S. House will appear in the RECORD at this point. District Attorney of Orange County on Feb- of Representatives on January 7, 1997; and There was no objection. ruary 13, 1997 and has received and reviewed Whereas A Notice of Contest of Election The text of the Chair’s prior state- all records pertaining to registration efforts was filed with the Clerk of the House by Mr. ment is as follows: of that group; and Robert Dornan on December 26, 1996; and Whereas the House Oversight Committee is Under rule IX, a resolution offered from Whereas the Task Force on the Contested not pursuing a duplicate and dilatory review the floor by a Member other than the major- Election in the 46th District of California of materials already in the Committees pos- ity leader or the minority leader as a ques- met on February 26, 1997 in Washington, D.C. session by the Secretary of State of Califor- tion of the privileges of the House has imme- on April 19, 1997 in Orange County, California nia; diate precedence only at a time designated and October 24, 1997 in Washington, D.C.; and by the Chair within 2 legislative days after Whereas the Task Force on the Contested Whereas Mr. Dornan’s unproven allega- the resolution is properly noticed. Election in the 46th District of California tions and the actions of the Committee on Pending that designation, the form of the and the Committee have been reviewing House Oversight have resulted in an unprece- resolution noticed by the gentleman from these materials and has all the information dented attack against Latino voters and cre- Texas [Mr. REYES] will appear in the RECORD it needs regarding who voted in the 46th Dis- ated a chilling effect with a message to at this point. trict and all the information it needs to Latinos that their votes are suspect; and The Chair will not at this point determine make judgments concerning those votes; and Whereas the allegations made by Mr. Rob- whether the resolution constitutes a ques- Whereas the Committee on House Over- ert Dornan have been largely found to be tion of privilege. That determination will be sight has after over nine months of review without merit: charges of improper voting made at the time designated for consider- and investigation failed to present credible from a business, rather than a resident ad- ation of the resolution. evidence to change the outcome of the elec- dress; underage voting; double voting; and tion of Congresswoman Sanchez and is pur- f charges of an unusually large number of in- suing never ending and unsubstantiated dividuals voting from the same address. It ANNOUNCEMENT OF INTENTION TO areas of review; and was found that voting from the same address OFFER RESOLUTION RAISING Whereas, Contestant Robert Dornan has included a Marines barracks and the domi- not shown or provided credible evidence that cile of nuns, that business addresses were QUESTION OF PRIVILEGES OF the outcome of the election is other than THE HOUSE legal residences for the individuals, includ- Congresswoman Sanchez’s election to the ing the zoo keeper of the Santa Ana zoo, that Mr. TORRES. Mr. Speaker, pursuant Congress; and duplicate voting was by different individuals to clause 2 of rule IX, I hereby give no- Whereas, the privacy rights of thousands and those accused of underage voting were of tice of my intention to offer a resolu- have been trampled with the sharing of INS age; and files with second and third parties, half of tion which raises a question of the Whereas the Committee on House Over- which were Latino surnames; sight has issued unprecedented subpoenas to privileges of the House. Whereas, the Committee on House Over- The form of the resolution is as fol- the Immigration and Naturalization Service sight should complete its review of this mat- to compare their records with Orange Coun- lows: ter and bring this contest to an end: Now, ty voter registration records, the first time Whereas, Loretta Sanchez was issued a cer- therefore, be it in any election in the history of the United tificate of election as the duly elected Mem- Resolved, That unless the Committee on States that the INS has been asked by the ber of Congress from the 46th District of House Oversight has sooner reported a rec- Congress to verify the citizenship of voters; California by the Secretary of the State of ommendation for its final disposition, the and California and was seated by the U.S. House contest in the 46th District of California is Whereas the INS has complied with the of Representatives on January 7, 1997; and dismissed upon the expiration of November 7, Committee’s request and, at the Commit- Whereas A Notice of Contest of Election 1997. tee’s request, has been doing a manual check was filed with the Clerk of the House by Mr. b 1530 of its paper files and providing worksheets Robert Dornan on December 26, 1996; and containing supplemental information on Whereas the Task Force on the Contested The SPEAKER pro tempore (Mr. CAL- that manual check to the Committee on Election in the 46th District of California VERT). Without objection, the Chair’s House Oversight for over five months; and met on February 26, 1997 in Washington, D.C. previous ruling under rule IX will be Whereas the Committee on House Over- on April 19, 1997 in Orange County, California entered in the RECORD at this point. sight, subpoenaed the records seized by the and October 24, 1997 in Washington, D.C. and There was no objection. District Attorney of Orange County on Feb- Whereas Mr. Dornan’s unproven allega- ruary 13, 1997 and has received and reviewed tions and the actions of the Committee on The text of the Chair’s prior state- all records pertaining to registration efforts House Oversight have resulted in an unprece- ment is as follows: of that group; and dented attack against Latino voters and cre- Under rule IX, a resolution offered from Whereas the House Oversight Committee is ated a chilling effect with a message to the floor by a Member other than the Major- not pursuing a duplicate and dilatory review Latinos that their votes are suspect; ity Leader or the Minority Leader as a ques- of materials already in the Committees pos- Whereas the allegations made by Mr. Rob- tion of the privileges of the House has imme- session by the Secretary of State of Califor- ert Dornan have been largely found to be diate precedence only at a time designated nia; H10052 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Whereas the Task Force on the Contested House Oversight have resulted in an unprece- ity Leader or the Minority Leader as a ques- Election in the 46th District of California dented attack against Latino voters and cre- tion of the privileges of the House has imme- and the Committee have been reviewing ated a chilling effect with a message to diate precedence only at a time designated these materials and has all the information Latinos that their votes do not count; and by the Chair within two legislative days it needs regarding who voted in the 46th Dis- Whereas the allegations made by Mr. Rob- after the resolution is properly noticed. trict and all the information it needs to ert Dornan have been largely found to be Pending that designation, the form of the make judgments concerning those votes; and without merit: charges of improper voting resolution noticed by the gentleman from Whereas the Committee on House Over- from a business, rather than a resident ad- Texas [Mr. HINOJOSA] will appear in the sight has after nine months of review and in- dress; underage voting; double voting; and RECORD at this point. vestigation failed to present credible evi- charges of unusually large number of indi- The Chair will not at this point determine dence to change the outcome of the election viduals voting from the same address. It was whether the resolution constitutes a ques- of Congresswoman Sanchez and is presuming found that voting from the same address in- tion of privilege. That determination will be never ending and unsubstantiated areas of cluded a Marines barracks and the domicile made at the time designated for consider- review; and of nuns, that business addresses were legal ation of the resolution. Whereas, Contestant Robert Dornan has residences for the individuals, including the f zoo keeper of the Santa Ana zoo, that dupli- not shown or provided credible evidence that ANNOUNCEMENT OF INTENTION TO the outcome of the election is other than cate voting was by different individuals and Congresswoman Sanchez’s election to the those accused of underage voting were of OFFER RESOLUTION RAISING Congress; and age; and QUESTION OF PRIVILEGES OF Whereas, the continued probe of the Whereas the Committee on House Over- THE HOUSE Sanchez election unfairly targets Latino vot- sight has issued unprecedented subpoenas to the Immigration and Naturalization Service Mr. ROMERO-BARCELO. Mr. Speak- ers and discourages their full participation er, pursuant to clause 2 of rule IX, I in the democratic process; and to compare their records with Orange Coun- Whereas, the Committee on House Over- ty voter registration records, the first time hereby give notice of my intention to sight should complete its review of this mat- in any election in the history of the United offer a resolution which raises a ques- ter and bring this contest to an end: Now, States that the INS has been asked by the tion of the privileges of the House. therefore, be it Congress to verify the citizenship of voters; The form of the resolution is as fol- Resolved, That unless the Committee on and lows: House Oversight has sooner reported a rec- Whereas the INS has complied with the Whereas, Loretta Sanchez was issued a cer- ommendation for its final disposition, the Committee’s request and, at the Commit- tificate of election as the duly elected Mem- contest in the 46th District of California is tee’s request, has been doing a manual check ber of Congress from the 46th District of dismissed upon the expiration of November 7, of its paper files and providing worksheets California by the Secretary of the State of 1997. containing supplemental information on California and was seated by the U.S. House that manual check to the Committee on The SPEAKER pro tempore. Without of Representatives on January 7, 1997; and House Oversight for over five months; and Whereas A Notice of Contest of Election objection, the Chair’s previous ruling Whereas the Committee on House Over- was filed with the Clerk of the House by Mr. under rule IX will be entered in the sight, subpoenaed the records seized by the Robert Dornan on December 26, 1996; and RECORD at this point. District Attorney of Orange County on Feb- Whereas the Task Force on the Contested There was no objection. ruary 13, 1997 and has received and reviewed Election in the 46th District of California The text of the Chair’s prior state- all records pertaining to registration efforts met on February 26, 1997 in Washington, D.C. of that group; and ment is as follows: on April 19, 1997 in Orange County, California Whereas the House Oversight Committee is and October 24, 1997 in Washington, D.C.; and Under rule IX, a resolution offered from now pursuing a duplicate and dilatory review Whereas Mr. Dornan’s unproven allega- the floor by a Member other than the Major- of materials already in the Committees pos- tions and the actions of the Committee on ity Leader or the Minority Leader as a ques- session by the Secretary of State of Califor- House Oversight have resulted in an unprece- tion of the privileges of the House has imme- nia; and dented attack against Hispanic voters and diate precedence only at a time designated Whereas the Task Force on the Contested created a chilling effect with a message to by the Chair within two legislative days Election in the 46th District of California Hispanics that their votes de not count; after the resolution is properly noticed. and the Committee have been reviewing Whereas the allegations made by Mr. Rob- Pending that designation, the form of the these materials and has all the information ert Dornan have been largely found to be resolution noticed by the gentlewoman from it needs regarding who voted in the 46th Dis- without merit: charges of improper voting California [Ms. ROYBAL-ALLARD] will appear trict and all the information it needs to from a business, rather than a resident ad- in the RECORD at this point. make judgments concerning those votes; and dress; underage voting; double voting; and The Chair will not at this point determine Whereas the Committee on House Over- charges of unusually large number of indi- whether the resolution constitutes a ques- sight has after nine months of review and in- viduals voting from the same address. It was tion of privilege. That determination will be vestigation failed to present credible evi- found that voting from the same address in- made at the time designated for consider- dence to change the outcome of the election cluded a Marines barracks and the domicile ation of the resolution. of Congresswoman Sanchez and is pursuing of nuns, that business addresses were legal f never ending and unsubstantiated areas of residences for the individuals, including the review; and zoo keeper of the Santa Ana zoo, that dupli- ANNOUNCEMENT OF INTENTION TO Whereas, Contestant Robert Dornan has cate voting was by different individuals and OFFER RESOLUTION RAISING not shown or provided credible evidence that those accused of underage voting were of QUESTION OF PRIVILEGES OF the outcome of the election is other than age; and THE HOUSE Congresswoman Sanchez’ election to the Whereas the Committee on House Over- Congress; and sight has issued unprecedented subpoenas to Mr. HINOJOSA. Mr. Speaker, pursu- Whereas, the continued probe of the the Immigration and Naturalization Service ant to clause 2 of rule IX, I hereby give Sanchez election unfairly targets Latino vot- to compare their records with Orange Coun- notice of my intention to offer a reso- ers and discourages their full participation ty voter registration records, the first time lution which raises a question of the in the democratic process; and in any election in the history of the United Whereas, the Committee on House Over- States that the INS has been asked by Con- privileges of the House. sight should complete its review of this mat- The form of the resolution is as fol- gress to verify the citizenship of voters; and ter and bring this contest to an end: Now, Whereas the INS has complied with the lows: therefore, be it Committee’s request and, at the Commit- Whereas, Loretta Sanchez was issued a cer- Resolved, That unless the Committee on tee’s request, has been doing a manual check tificate of election as the duly elected Mem- House Oversight has sooner reported a rec- of its paper files and providing worksheets ber of Congress from the 46 District of Cali- ommendation for its final disposition, the containing supplemental information on fornia by the Secretary of the State of Cali- contest in the 46th District of California is that manual check to the Committee on fornia and was seated by the U.S. House of dismissed upon the expiration of November 7, House Oversight for over five months; and Representatives on January 7, 1997; and 1997. Whereas the Committee on House Over- Whereas A Notice of Contest of Election The SPEAKER pro tempore. Without sight, subpoenaed the records seized by the was filed with the Clerk of the House by Mr. objection, the Chair’s previous ruling District Attorney of Orange County on Feb- Robert Dornan on December 26, 1996; and under rule IX will be entered in the ruary 13, 1997 and has received and reviewed Whereas the Task Force on the Contested all records pertaining to registration efforts RECORD at this point. Election in the 46th District of California of that group; and met on February 26, 1997 in Washington, D.C. There was no objection. Whereas the House Oversight Committee is on April 19, 1997 in Orange County, California The text of the Chair’s prior state- not persuing a duplicate and dilatory review and October 24, 1997 in Washington, D.C.; and ment is as follows: of materials already in the Committees pos- Whereas Mr. Dornan’s unproven allega- Under rule IX, a resolution offered from session by the Secretary of State of Califor- tions and the actions of the Committee on the floor by a Member other than the Major- nia; and November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10053 Whereas the Task Force on the Contested met on February 26, 1997 in Washington, D.C. There was no objection. Election in the 46th District of California on April 19, 1997 in Orange County, California The text of the Chair’s prior state- and the Committee have been reviewing and October 24, 1997 in Washington, D.C.; and ment is as follows: these materials and has all the information Whereas Mr. Dornan’s unproven allega- it needs regarding who voted in the 46th Dis- tions and the actions of the Committee on Under rule IX, a resolution offered from trict and all the information it needs to House Oversight have resulted in an unprece- the floor by a Member other than the Major- make judgements concerning those votes; dented attack against Latino voters and cre- ity Leader or the Minority Leader as a ques- and ated a chilling effect with a message to tion of the privileges of the House has imme- Whereas the Committee on House Over- Latinos that their votes are suspect; and diate precedence only at a time designated sight has after nine months of review and in- Whereas the allegations made by Mr. Rob- by the Chair within two legislative days vestigation failed to present credible evi- ert Dornan have been largely found to be after the resolution is properly noticed. dence to change the outcome of the election without merit: charges of improper voting Pending that designation, the form of the of Congresswoman Sanchez and is pursuing from a business, rather than a resident ad- resolution noticed by the gentleman from never ending and unsubstantiated areas of dress; underage voting; double voting; and Texas [Mr. RODRIGUEZ] will appear in the review; and charges of unusually large number of indi- RECORD at this point. Whereas, Contestant Robert Dornan has viduals voting from the same address. It was The Chair will not at this point determine not shown or provided credible evidence that found that voting from the same address in- whether the resolution constitutes a ques- the outcome of the election is other than cluded a Marines barracks and the domicile tion of privilege. That determination will be Congresswoman Sanchez’s election to the of nuns, that business addresses were legal made at the time designated for consider- Congress; and residences for the individuals, including the ation of the resolution. Whereas, after nearly a year and the ex- zoo keeper of the Santa Ana zoo, that dupli- f penditure of over $500,000, the inquisition of cate voting was by different individuals and voters of California’s 46th Congressional Dis- those accused of underage voting were of PARLIAMENTARY INQUIRY trict has resulted in the intimidation of His- age; and Whereas the Committee on House Over- Mr. SOLOMON. Mr. Speaker, may I panic voters; sight has issued unprecedented subpoenas to propound a parliamentary inquiry? Whereas, the Committee on House Over- the Immigration and Naturalization Service The SPEAKER pro tempore. The gen- sight should complete its review of this mat- to compare their records with Orange Coun- ter and bring this contest to an end Now tleman will state his parliamentary in- ty voter registration records, the first time therefore, be it; quiry. in any election in the history of the United Resolved, That unless the Committee on Mr. SOLOMON. Mr. Speaker, I have States that the INS has been asked by Con- House Oversight has sooner reported a rec- sat here for over an hour now waiting gress to verify the citizenship of voters; and ommendation for its final disposition, the Whereas the INS has complied with the to bring before this body nine very, contest in the 46th District of California is Committee’s request and, at the Commit- very important measures dealing with dismissed upon the expiration of November 7, tee’s request, has been doing a manual check our relationship with the Communist 1997. of its paper files and providing worksheets People’s Republic of China, and during b 1545 containing supplemental information on that hour we have been delayed, we that manual check to the Committee on have listened to a number of notices of The SPEAKER pro tempore (Mr. House Oversight for over five months; and questions of privilege. One of them was PEASE). Without objection, the Chair’s Whereas the Committee on House Over- by our good friend, and she is a good previous ruling under rule IX will be sight, subpoenaed the records seized by the friend, the gentlewoman from Califor- entered in the RECORD at this point. District Attorney of Orange County on Feb- nia [Ms. ROYBAL-ALLARD], and as I lis- There was no objection. ruary 13, 1997 and has received and reviewed all records pertaining to registration efforts tened to her make notice, I came The text of the Chair’s prior state- of that group; and across the October 31, 1997, page H9814, ment is as follows: Whereas the House Oversight Committee is CONGRESSIONAL RECORD, which is enti- Under rule IX, a resolution offered from now pursuing a duplicate and dilatory review tled ‘‘An Announcement of Intention the floor by a Member other than the major- of materials already in the Committees pos- ity leader or the minority leader as a ques- session by the Secretary of State of Califor- to Offer Resolution Raising Question of tion of the privileges of the House has imme- nia; and Privileges of the House,’’ and it seems diate precedence only at a time designated Whereas the Task Force on the Contested to me that the gentlewoman from Cali- by the Chair within 2 legislative days after Election in the 46th District of California fornia repeated exactly what she had the resolution is properly noticed. and the Committee have been reviewing noticed on October 31. Pending that designation, the form of the these materials and has all the information My question to the Chair is, it would resolution noticed by the gentleman from it needs regarding who voted in the 46th Dis- seem, whether intentional or uninten- ´ trict and all the information it needs to Puerto Rico [Mr. ROMERO-BARCELO] will ap- tional, that that would be deleterious pear in the RECORD at this point. make judgments concerning those votes; and The Chair will not at this point determine Whereas the Committee on House Over- in rising to make notice on the same whether the resolution constitutes a ques- sight has after over nine months of review question while one was pending. What tion of privilege. That determination will be and investigation failed to present credible is the parliamentary situation there? made at the time designated for consider- evidence to change the outcome of the elec- The SPEAKER pro tempore. The ation of the resolution. tion of Congresswoman Sanchez and is pur- Chair will examine the announced reso- suing never ending and unsubstantiated f lution to determine whether it is iden- areas of review; and tical to another one considered by the ANNOUNCEMENT OF INTENTION TO Whereas, Contestant Robert Dornan has not shown or provided credible evidence that House on the same day. OFFER RESOLUTION RAISING the outcome of the election is other than f QUESTION OF PRIVILEGES OF Congresswoman Sanchez’s election to the THE HOUSE Congress; and ANNOUNCEMENT OF COMMITTEE Mr. RODRIGUEZ. Mr. Speaker, pur- Whereas, after nearly a year and the ex- ON RULES MEETING penditure of over $500,000, the continued suant to clause 2 of rule IX, I hereby probe of the Sanchez election unfairly tar- (Mr. SOLOMON asked and was given give notice of my intention to offer a gets Latino voters and discourages their full permission to address the House for 1 resolution which raises a question of participation in the democratic process; and minute.) the privileges of the House. Whereas, the Committee on House Over- Mr. SOLOMON. Mr. Speaker, I have The form of the resolution is as fol- sight should complete its review of this mat- asked for this time for the purposes of lows: ter and bring this contest to an end and now making an announcement about a therefore be it: Committee on Rules meeting. Whereas, Loretta Sanchez was issued a cer- Resolved, That unless the Committee on tificate of election as the duly elected Mem- House Oversight has sooner reported a rec- Mr. Speaker, we have just witnessed ber of Congress from the 46th District of ommendation for its final disposition, the another, I believe, 14 or 15, I did not California by the Secretary of State of Cali- contest in the 46th District of California is count the number, questions of privi- fornia and was seated by the U.S. House of dismissed upon the expiration of November 7, leges being noticed on the floor dealing Representatives on January 7, 1997; and 1997. with the Sanchez/Dornan situation. Whereas A Notice of Contest of Election was filed with the Clerk of the House by Mr. The SPEAKER pro tempore. Without This brings to, just a guesstimate, to Robert Dornan on December 26, 1996; and objection, the Chair’s previous ruling about 45 that now are pending. We have Whereas the Task Force on the Contested under rule IX will be entered in the delayed the actions of the House by 1 Election in the 46th District of California RECORD at this point. hour, more than 1 hour just now. If we H10054 CONGRESSIONAL RECORD — HOUSE November 5, 1997 were to entertain those 45-plus notices This is, and when I finish I will yield, Mr. SOLOMON. Mr. Speaker, re- over the next couple of days, that this is typical of nomenclature that we claiming my time, first of all, I have to would take up probably 24 legislative do each year. We would also include in yield to the gentleman from Texas who hours of this body. that rule permission for suspension asked me to yield in the first place, This body has been working dili- days to be brought up with notice to and then, if the gentlewoman would let gently to try to complete the work of the minority any day between now and him speak for her, because we have to the House so that we can adjourn for Sunday so that we could take care of get on with the regular order. this year. As everyone knows, there are those significant issues that were not Ms. DELAURO. Well, I would like to three appropriation bills that are con- controversial and perhaps deal with correct the RECORD in a couple of ways, tentious. One of those deals with the them between now and Sunday. if I can. Census issue which we are told now is But, also, I am just going to reluc- Mr. SOLOMON. Well, Mr. Speaker, I about to be worked out. Another dealt tantly recommend to the leadership will first yield to the gentleman from with an abortion issue on the Foreign that we limit in some way the notices Texas. Operations appropriation bill. We are that Members can bring on questions of Would the gentleman from Texas told that the gentleman from New Jer- privilege. Perhaps, and I have not de- rather I yield to the gentlewoman from sey [Mr. SMITH] has just about com- cided how we will do this, but perhaps Connecticut? pleted a compromise on that, and we giving that right to the minority lead- Mr. HINOJOSA. Mr. Speaker, that is are told that the gentleman from Penn- er and the majority leader so that we fine. sylvania [Mr. GOODLING], in negotia- can have negotiations that try to work Mr. SOLOMON. I just did not want to tions with the House, has just about out some comity and complete the slight the gentleman from Texas. completed a compromise on the test- work of the House. It is terribly impor- Ms. DELAURO. Mr. Speaker, I thank ing. tant for the American people. my colleague for yielding. There are So that the only issues really to Mr. Speaker, I yield to the gentleman two points here. One has to do with our come before this body between now and from San Diego, CA [Mr. HUNTER]. colleague, the gentlewoman from Cali- the time that we would adjourn would Mr. HUNTER. Mr. Speaker, let me fornia [Ms. ROYBAL-ALLARD] who, in be those three appropriation bills, the just say that I support what he is try- fact, has introduced two privileged mo- fast track bill, whether my colleagues ing to do for the simple reason that I tions, two different dates. Both are dif- are for or against it, I happen to be op- have heard the notices read over and ferent, if the gentleman will check and posed to it, and some other measures over again protesting the fact that we take a look at the Record. such as these nine United States-China do not have a result yet in the election Mr. SOLOMON. Mr. Speaker, would relation bills that are terribly impor- contest, and I just say to my friends the gentlewoman explain to us how tant on the floor, now that it is going that the notices are written in such a they are different? to take about 14 or 15 hours. way that they are totally one-sided, Ms. DELAURO. Let me just finish. My point is, we have been delayed there is no time for debate, and I sit Second, there is nothing, nothing, now so that we will not be able to com- there looking at the newspaper head- nothing we would like better on this plete the day’s work on these China lines in California saying that the sec- side of the aisle on this issue than to bills even if we stay until midnight, retary of state has found that 60 per- have the opportunity for debate. Every which we are, incidentally. We are cent of the registrations by one group time one of these, after the notice and going to stay at least until midnight. of people who were registered and the vote comes due, we would love to But even then, we will have to carry voted manipulated—it says that 60 per- have a debate. In fact, what happens is over five or six of these China bills cent of these registrations were illegal. that a Member gets up and calls for the until tomorrow, and then that just And yet the idea, if my colleagues motion to be tabled, so in fact, we can- delays any chance that we might have listen to the text of the privileged reso- not have a debate. had, I think, of adjourning for the year lutions, which, in essence, are argu- Mr. SOLOMON. Mr. Speaker, re- this Saturday, and even perhaps this ments themselves, they talk about Ma- claiming my time, we have already had Sunday. rine barracks being questioned and that debate. But that part is irrelevant. The part nuns being questioned. And of course Ms. DELAURO. Allow us the oppor- that concerns me is that in all of the those may be in the huge universe of tunity to have the debate on this. notices that have been brought before tens of thousands of people, but the Mr. SOLOMON. Mr. Speaker, regular the House, I believe, and I say this sin- fact that one group alone was found to order. Reclaiming my time, the Gep- cerely, with no animosity, and I will have had 60 percent of their registra- hardt debate amendment, or questions not yield until I am finished, but I will tions being fraudulent, and the idea of privileges, has been debated on the be glad to at some point, I just believe, that this House should not investigate floor. I now yield back. I sincerely believe, that they are dele- that, and that there is no chance for a f terious in nature, and I have discussed debate on these privileged motions, REQUEST FOR PERMISSION TO this with the Speaker of the House and they are simply read over and over SPEAK OUT OF ORDER asked him if he would not declare them again in rote. deleterious, keeping in mind that if Mr. HEFNER. Mr. Speaker, I ask b one or two wanted to be offered each 1600 unanimous consent to be recognized day, certainly knowing the sincerity They were obviously written in such out of order for 5 minutes. by some Members of the other side of a way as to make the argument in the Mr. SOLOMON. Mr. Speaker, we have the aisle that we ought to, as my col- resolution itself. to continue with regular order. leagues know, go along with that. But Ms. DELAURO. Mr. Speaker, will the Ms. DELAURO. Mr. Speaker, the gen- the Speaker is hesitant to do that be- gentleman yield? tleman from New York spoke out of cause he wants to keep comity in the Mr. HUNTER. I am not going to yield order for 5 minutes, or longer than House. until I am able to finish my sentence. that. But, nevertheless, it is the respon- That, I think, offers no value to this Mr. SOLOMON. Mr. Speaker, I ob- sibility of the Committee on Rules to deliberative body, because there is ab- ject. see to it that we complete our work on solutely no time given on the other The SPEAKER pro tempore (Mr. CAL- this session, and that is why I have side, and it gives the impression to the VERT). Objection is heard. scheduled a Committee on Rules meet- people out in the countryside that f ing, and I would make notice to the there is not a group that had 60 percent members of the Committee on Rules fraudulent registrations, which in fact PROVIDING FOR CONSIDERATION that we will be considering in the Com- has been the finding of the secretary of OF NINE MEASURES RELATING mittee on Rules a two-thirds waiver for state, which would justify any delib- TO THE POLICY OF THE UNITED remaining appropriation bills from now erative body in the world at least the STATES WITH RESPECT TO THE until Sunday, which means that if the idea that we should go forward and at PEOPLE’S REPUBLIC OF CHINA appropriation bills were complete, we least have a further investigation until Mr. SOLOMON. Mr. Speaker, by di- could bring them up in the same day. we find all the information. rection of the Committee on Rules, I November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10055 call up House Resolution 302 and ask be ineligible to receive visas and excluded China or any Communist Chinese military for its immediate consideration. from admission to the United States. The company in the United States are monitored The Clerk read the resolution, as fol- bill shall be considered as read for amend- and are subject to the authorities under the lows: ment. The amendments recommended by the International Emergency Economic Powers Committee on International Relations now Act. The bill shall be considered as read for H. RES. 302 printed in the bill shall be considered as amendment. The previous question shall be Resolved, That upon the adoption of this adopted. The previous question shall be con- considered as ordered on the bill to final pas- resolution it shall be in order to consider in sidered as ordered on the bill, as amended, to sage without intervening motion except: (1) the House the bill (H.R. 2358) to provide for final passage without intervening motion ex- one hour of debate equally divided and con- improved monitoring of human rights viola- cept: (1) one hour of debate on the bill, as trolled by the chairman and ranking minor- tions in the People’s Republic of China. The amended, which shall be equally divided and ity member of the Committee on Inter- bill shall be considered as read for amend- controlled by the chairman and ranking mi- national Relations or their designees; and (2) ment. The amendments recommended by the nority member of the Committee on Inter- one motion to recommit. Committee on International Relations now national Relations or their designees; and (2) SEC. 9. After disposition of or postpone- printed in the bill and the amendments one motion to recommit with or without in- ment of further proceedings on H.R. 2647, it printed in part 1-A of the report of the Com- structions. shall be in order to consider in the House the mittee on Rules accompanying this resolu- SEC. 5. After disposition of or postpone- bill (H.R. 2232) to provide for increased inter- tion shall be considered as adopted. All ment of further proceedings on H.R. 967, it national broadcasting activities in China. points of order against the bill, as amended, shall be in order to consider in the House the The bill shall be considered as read for are waived. The previous question shall be bill (H.R. 2570) to condemn those officials of amendment. The amendment in the nature considered as ordered on the bill, as amend- the Chinese Communist Party, the Govern- of a substitute recommended by the Commit- ed, and any further amendment thereto to ment of the People’s Republic of China, and tee on International Relations now printed final passage without intervening motion ex- other persons who are involved in the en- in the bill shall be considered as adopted. cept: (1) one hour of debate on the bill, as forcement of forced abortions by preventing The previous question shall be considered as amended, which shall be equally divided and such persons from entering or remaining in ordered on the bill, as amended, to final pas- controlled by the chairman and ranking mi- the United States. The bill shall be consid- sage without intervening motion except: (1) nority member of the Committee on Inter- ered as read for amendment. The amendment one hour of debate on the bill, as amended, national Relations or their designees; (2) the printed in part 3 of the report of the Com- which shall be equally divided and controlled further amendment specified in part 1-B of mittee on Rules shall be considered as adopt- by the chairman and ranking minority mem- ber of the Committee on International Rela- the report of the Committee on Rules, if of- ed. The previous question shall be considered tions or their designees; and (2) one motion fered by Representative Gilman or his des- as ordered on the bill, as amended, to final to recommit with or without instructions. ignee, which shall be in order without inter- passage without intervening motion except: SEC. 10. During consideration of any meas- vention of any point of order, shall be con- (1) one hour of debate equally divided and ures pursuant to this resolution, the list of sidered as read, and shall be separately de- controlled by the chairman and ranking mi- questions on which the Chair may postpone batable for thirty minutes equally divided nority member of the Committee on the Ju- proceedings under clause 5(b)(1) of rule I and controlled by the proponent and an op- diciary or their designees; and (2) one motion shall be considered to include (as though in ponent; and (3) one motion to recommit with to recommit with or without instructions. one of the subdivisions (A) through (E)) both SEC. 6. After disposition of or postpone- or without instructions. the question of adopting an amendment and SEC. 2. After disposition of or postpone- ment of further proceedings on H.R. 2570, it the question of adopting a motion to recom- ment of further proceedings on H.R. 2232, it shall be in order to consider in the House the mit. shall be in order without intervention of any bill (H.R. 2386) to implement the provisions point of order to consider in the House the of the Taiwan Relations Act concerning the The SPEAKER pro tempore. The gen- bill (H.R. 2195) to provide for certain meas- stability and security of Taiwan and United tleman from New York [Mr. SOLOMON] ures to increase monitoring of products of States cooperation with Taiwan on the de- is recognized for 1 hour. the People’s Republic of China that are made velopment and acquisition of defensive mili- AMENDMENT OFFERED BY MR. SOLOMON with forced labor. The bill shall be consid- tary articles. The bill shall be considered as Mr. SOLOMON. Mr. Speaker, I offer a ered as read for amendment. The amendment read for amendment. The amendment in the technical amendment to the resolu- in the nature of a substitute recommended nature of a substitute recommended by the tion. After clearing a technical print- by the Committee on Ways and Means now Committee on International Relations now printed in the bill shall be considered as printed in the bill, modified by the amend- ing error with the gentleman from adopted. The previous question shall be con- ments printed in part 4 of the report of the Ohio [Mr. HALL], a member of the Com- sidered as ordered on the bill, as amended, to Committee on Rules, shall be considered as mittee on Rules, I ask unanimous con- final passage without intervening motion ex- adopted. The previous question shall be con- sent that the amendment to House cept: (1) one hour of debate on the bill, as sidered as ordered on the bill, as amended, to Resolution 302 placed at the desk be amended, which shall be equally divided and final passage without intervening motion ex- considered as adopted. controlled by the chairman and ranking mi- cept: (1) one hour of debate on the bill, as The SPEAKER pro tempore. Is there nority member of the Committee on Ways amended, which shall be equally divided and objection to the request of the gen- and Means or their designees; and (2) one mo- controlled by the chairman and ranking mi- tleman from New York? tion to recommit with or without instruc- nority member of the Committee on Inter- There was no objection. tions. national Relations or their designees; and (2) Mr. SOLOMON. Mr. Speaker, I yield SEC. 3. After disposition of or postpone- one motion to recommit with or without in- ment of further proceedings on H.R. 2195, it structions. such time as he may consume to the shall be in order to consider in the House the SEC. 7. After disposition of or postpone- gentleman from New York [Mr. GIL- resolution (H. Res. 188) urging the executive ment of further proceedings on H.R. 2386, it MAN]. branch to take action regarding the acquisi- shall be in order to consider in the House the (Mr. GILMAN asked and was given tion by Iran of C-802 cruise missiles. The res- bill (H.R. 2605) to require the United States permission to revise and extend his re- olution shall be considered as read for to oppose the making of concessional loans marks.) amendment. The amendments printed in by international financial institutions to Mr. GILMAN. Mr. Speaker, I thank part 2 of the report of the Committee on any entity in the People’s Republic of China. the Chairman of the Committee on Rules shall be considered as adopted. The The bill shall be considered as read for Rules for yielding to me. previous question shall be considered as or- amendment. The amendments printed in I am pleased to rise in support of dered on the resolution and the preamble, as part 5 of the report of the Committee on amended, to final adoption without interven- Rules shall be considered as adopted. The House Resolution 302 providing for con- ing motion except: (1) one hour of debate on previous question shall be considered as or- sideration of nine measures relating to the resolution, as amended, which shall be dered on the bill, as amended, to final pas- the policy of the United States with re- equally divided and controlled by the chair- sage without intervening motion except: (1) spect to the People’s Republic of China. man and ranking minority member of the one hour of debate on the bill, as amended, Mr. Speaker, I am pleased to rise in support Committee on International Relations or which shall be equally divided and controlled of the rule (H. Res. 302) providing for consid- their designees; and (2) one motion to recom- by the chairman and ranking minority mem- eration of nine measures relating to the policy mit with or without instructions. ber of the committee on Banking and Finan- of the United States with respect to the Peo- SEC. 4. After disposition of or postpone- cial Services or their designees; and (2) one ment of further proceedings on H. Res. 188, it ple's Republic of China. motion to recommit with or without instruc- Today the House addresses major aspects shall be in order to consider in the House the tions. bill (H.R. 967) to prohibit the use of United SEC. 8. After disposition of or postpone- of the United States-China relationship in States funds to provide for the participation ment of further proceedings on H.R. 2605, it bringing these measures to the floor. of certain Chinese officials in international shall be in order to consider in the House the Many ask: Why are we taking up these conferences, programs, and activities and to bill (H.R. 2647) to ensure that commercial ac- measures? The answer is simple. We are tak- provide that certain Chinese officials shall tivities of the People’s Liberation Army of ing up these measures because we made a H10056 CONGRESSIONAL RECORD — HOUSE November 5, 1997 promise to the American people when the ment process. House Resolution 188, Mr. Speaker, I must at this point House unanimously adopted House Resolu- the fighting missile proliferation reso- heap praise on the man I think most tion 461 in June 1996. lution, is to be considered under a responsible for putting this package to- That resolution, which was introduced by modified, closed amendment process as gether and getting it to this floor this Mr. SOLOMON and Mr. COX, called for hearings well. far, our Republican policy committee and legislation by the cognizant House com- The rule then provides for the consid- chairman, the gentleman from Califor- mittees on issues of concern to the American eration of H.R. 967, the Free the Clergy nia, Mr. CHRIS COX. The gentleman people regarding the People's Republic of Act, under a closed amendment proc- from California [Mr. COX] and his staff China. We're keeping our promise. ess. The rule provides for the consider- have done diligent work, outstanding This legislative package is an effort to sepa- ation of H.R. 2570, the Forced Abortion work over these past several months, rate such issues as human rights, proliferation, Condemnation Act. as a matter of fact, several years, in and the advancement of democracy from our Next, the rule provides for consider- overseeing this effort, and our hats cer- annual debate about China's trade statusÐthe ation of H.R. 2386, the Taiwan Missile tainly go off to him, and certainly I MFN issue. Defense Act. The rule provides for the know it is appreciated by the oppressed The American people are deeply concerned consideration of H.R. 2605, the China people of China. about our relationship with ChinaÐall of our Subsidization Act. Next, the rule pro- I would also like to thank the rel- colleagues receive letters, phone calls, and vides for the consideration of H.R. 2647, evant committees which have reported other communications about it. We are re- the Denial of Normal Commercial Sta- out or discharged this legislation, in- sponding to our constituents. tus to the Chinese People Liberation cluding the Committee on Ways and The Chinese are watching our actions Army. The rule then provides for the Means, the Committee on Banking and closely. This is an opportune time to be open consideration of H.R. 2232, the Radio Financial Services, the Committee on and to be frank with the new Chinese leader- Free Asia Act. the Judiciary, the Committee on Na- ship that the American people and Congress Finally, the rule provides that the tional Security, and especially the are concerned about a number of important is- Speaker may postpone proceedings on committee which did the lions’ share of sues in our bilateral relationship. the question of adopting an amend- work, the Committee on International Many of us in the Congress, and many of ment and the question of adopting a Relations, under the able leadership of motion to recommit. the American people, believe that the adminis- my good friend, the gentleman from tration is soft-peddling issues which we as b 1615 New York, Mr. BEN GILMAN. Americans feel strongly aboutÐsuch as Mr. Speaker, this is a fair, balanced Finally, Mr. Speaker, I would like to human rights, democratization, trade, Tibet, rule. It makes in order four amend- thank the minority leader, the gen- Taiwan, and our national security. ments by Democratic Members, two tleman from Missouri [Mr. GEPHARDT], This legislation expresses the strong senti- amendments by Republican Members, the gentlewoman from California [Ms. ment of the Congress and the American peo- and six amendments which are biparti- NANCY PELOSI], the gentleman from ple on these issues and urges the administra- san in nature. Ohio [Mr. TONY HALL], and so many tion to take appropriate action. Mr. Speaker, on the substance of the other Democrat Members on the other Seven of the nine bills fall within the sole or bill, let me just say that the day has fi- side of the aisle who have been un- shared jurisdiction of the Committee on Inter- nally arrived on this floor. Today we swerving in their support of a free national Relations. I am pleased with the work will consider a series of bills on China China, and who also helped make this of the Rules Committee on these measures. that I have just outlined that, to- package a legislative reality. Accordingly, I urge support for the rule so that gether, represent a comprehensive ap- Mr. Speaker, passage of these bills by we can proceed with consideration of these proach to dealing with the myriad of this House is absolutely essential here bills. problems presented by the criminal be- today. Even if one were a supporter of Mr. SOLOMON. Mr. Speaker, for the havior of the Communist dictatorship MFN, one must admit that China’s be- purposes of debate only, I yield half of in Beijing. havior is absolutely unacceptable, and our time, 30 minutes, to the gentleman Year after year we in this Congress this Congress cannot just stand idly by from Ohio [Mr. HALL], pending which I go through the routine process of at- and do nothing about it, especially yield myself such time as I might tempting to deny but then granting after the President of the United consume. During consideration of the most-favored-nation trading status to States fell all over himself last week resolution, all time yielded is for the this regime, despite its endless list of rolling out the red carpet for this Chi- purposes of debate only. crimes against humanity, crimes nese dictator, and offering him a bag of Mr. Speaker, the Committee on Rules against innocent human beings. Then goodies in return for a couple of empty has granted one rule which provides for we forget about it for a year while promises. We will be back here next the consideration of nine bills relating China continues its human rights year and 2 years from now, and I will to United States-China policy. Each of abuses, its grossly unfair trading prac- recall those empty promises to Mem- the nine bills will be considered sepa- tices, its huge military buildup, its sale bers, and Members will tell me that rately. Each bill will receive one hour of weapons and technology to rogue re- they were not fulfilled. of debate equally divided between the gimes like Iran, its religious persecu- Let us look at the facts. On trade chairman and ranking member of the tions of innocent, helpless human matters, hardly a day goes by when the committee of jurisdiction or their des- beings, and even worse, Mr. Speaker, economic and trade picture with China ignees. In addition, the rule provides selling ready-to-assemble factories to does not get worse. China’s refusal to that one motion to recommit, with or Middle East countries that produce grant fair and open access to American without instructions, will be in order chemical and biological weapons, in- goods has resulted in our trade deficit on each of the nine bills. cluding deadly nerve gas and other with that country skyrocketing to $38 With that, I will proceed to describe deadly germ warfare that could be used billion last year, and toward $50 billion briefly the procedure for each of those on American soldiers when they are this year. 9 bills. called upon to defend another country, Do Members know how many Amer- The first bill the rules makes in like Kuwait against Iraq. Members ican people were put out of work be- order is H.R. 2358, the Political Free- should read the newspaper and watch cause of that? The people that make dom in China Act, under a modified, television and see what is happening this shirt I am wearing here no longer closed amendment process. In addition, with this man Hussein in Iraq. have jobs. This has cost thousands of the rule makes in order and waives The nine bipartisan bills we offer American jobs, and this Congress re- points of order against the Gilman- here today, and I emphasize ‘‘biparti- fuses to do anything about it, up until Markey amendment specified in the san,’’ will help us break this vicious today. Committee on Rules, report to be sepa- cycle. Each of them deals with a dif- While this package will not affect rately debatable for 30 minutes. ferent aspect of our relationship with most-favored-nation trading status The rule then provides for the consid- China, or addresses a particular trans- with China, the bill of the gentle- eration of H.R. 2195, the Slave Labor gression committed by this Communist woman from Florida [Mrs. FOWLER] Products Act, under a closed amend- dictatorship. does attempt to address the problem of November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10057 the Chinese People’s Liberation Army’s abortions in themselves, but forced Finally, Mr. Speaker, I myself intro- huge commercial empire by requiring abortions? duced an attempt to shut down the tax- the executive branch to compile a list And the gentleman from California payer-funded money flow to this rogue of People’s Liberation Army compa- [Mr. ED ROYCE] will increase funding regime, which makes what we are nies, and authorizing the President to for Radio Free Asia with the intent of doing here today necessary by requir- restrict trade with them under the achieving 24-hours-a-day broadcasting ing the United States to oppose all so- International Emergency Economic in China in multiple languages and in called soft money loans to China. Powers Act. Considering the crimes dialects, so that the people behind that Here is this country. We are going to committed by the Chinese People’s Chinese iron curtain can see what is have people come on the floor today Liberation Army, as well as its clearly going on and can hear that there are and they are going to praise this Chi- unfair trading practices. This is clearly people out there, that there is a beacon na’s Government and say how success- the least we can do. of hope for them. ful they are, and look at their great On the matter of human rights, hard- In the field of national security, what economy. And we still give them ly a day goes by without reading of yet we see is a relentless Chinese military money in foreign aid? We give our tax- another act of aggression, another act buildup, ever more frequent exports of payers’ money to them? of duplicity, or another affront to hu- technology and weapons of mass de- Mr. Speaker, this world is upside manity committed by these butchers of struction, and an increasingly bellig- down. It is high time for substantive Beijing. erent Chinese foreign policy that even and creative responses to the afore- Consider this: The same people who threatens to use those missiles on Los mentioned affronts against humanity conducted the massacre in Tiananmen Angeles. committed by this despotic dictator- Square and the inhumane oppression of Where are all the Members from Cali- ship in China. That is what these nine Tibet, and if Members do not think fornia? They ought to be terribly, ter- bills are all about, and I would urge they are being oppressed, go there and ribly upset about that. Here is one every Member to come over here, par- see firsthand what is happening to back here. ticipate in this 10 hours of debate on those poor people, they have been bus- While every other major country has the issues that I have just brought be- ily eradicating the last remnants of the reduced its military spending, Com- fore Members. We need to do that not democracy movement in China. It is munist China has increased its mili- only for the people that are suffering gone, Mr. Speaker. tary spending by double digits for a under communism in China today, but As we all know, according to this number of years now, and has already we need to do it for the protection of year’s State Department human rights increased their military spending by 50 the American people in the future. report, in 1996, China stepped up efforts percent in just the last several years, Mr. Speaker, I reserve the balance of to cut off expressions of protest, and while we in America and every other my time. had effectively silenced all opposition democracy in the world is cutting AMENDMENT OFFERED BY MR. SOLOMON by intimidation, exile, or imprison- back. Why are they doing that? What The SPEAKER pro tempore (Mr. CAL- ment. That is our State Department’s have they got on their minds? What are VERT). Without objection, the Clerk report, Mr. Speaker. Read it. they buying with all of that money? will report the amendment to the reso- I emphasize the words ‘‘stepped up,’’ Soviet-made Sunburn missiles from lution that was previously agreed to. Mr. Speaker. Human rights in China Russia, that is what, and Soviet and There was no objection. are getting worse, not better. This Russian-made SU–27 Flankers, Kilo The Clerk read as follows: package attempts to deal with this fact submarines, and a host of other equip- Amendment offered by Mr. SOLOMON: through a variety of means. H.R. 2358 ment and technology that will allow The first sentence of section 2 is amended that was introduced by the gentle- China to, among other things, continue by striking ‘‘H.R. 2232’’ and inserting in lieu woman from Florida [Ms. ROS- to intimidate the democratic society of thereof ‘‘H.R. 2358’’. LEHTINEN] provides for $2 million for Taiwan. Mr. HALL of Ohio. Mr. Speaker, I additional diplomats dedicated to mon- Meanwhile, China’s irresponsible pro- yield myself such time as I may itoring human rights to be posted liferation activities continue to go consume. throughout all of China, so we can see unabated, despite last week’s paper Mr. Speaker, this resolution, House and we can have reports coming back promises. The fact is that China con- Resolution 302, is a compound rule that to us. tinues to export ballistic missile and will allow consideration under a very Another bill introduced by the gen- nuclear technology to Pakistan, and closed amendment process. It allows tleman from New Jersey [Mr. SMITH] missile, nuclear and chemical weapons nine separate bills or resolutions re- provides additional moneys for cus- technology to the avowed enemy of sponding to human rights abuses in toms inspectors to monitor and enforce America. China. existing prohibitions on slave labor, of Who says we are their enemy? Iran As my colleague, the gentleman from which Communist China is the world’s says we are their enemy. Yet China New York, has described, this rule pro- premier user. And some of the people gives them the same nuclear tech- vides 1 hour of general debate for each around here sing their praises. They nology that now we are telling them bill, equally divided and controlled by still use slave labor, starving people to we are going to give to China. It is out- the chairman and the ranking minority produce goods to sell in this country, rageous, Mr. Speaker. member of the committee of original like this shirt I am wearing, and 80 per- This package also deals with these jurisdiction. cent cheaper than we can make it in national security problems in several The rule permits only one floor our country. And we sit here and do different ways. One bill calls for en- amendment to be offered to one of the nothing about it? forcement of the Gore-McCain Act, this nine bills. No other floor amendments The Free the Clergy Act, H.R. 967, of is the law of the land, in light of Chi- can be offered to that bill or any of the the gentleman from New York [Mr. na’s C–802 missile shipments to Iran. other nine bills in the China package. BEN GILMAN] denies visas to Chinese of- That 1992 act calls for sanctions The rule self-executes 11 other amend- ficials that are engaged in China’s against countries which arm Iran, but ments to some of the bills. rampant religious persecution, and pro- the President and the Vice President Mr. Speaker, I do share with my col- hibits funding of travel to the United have been ignoring the law, declining league, the gentleman from New York States for officials of Communist Chi- even to issue a waiver. Why? I wonder [Mr. SOLOMON), an abomination of the na’s sham official churches. Do Mem- why. human rights abuses in China. During bers not know that that will send a H.R. 2386, introduced by the gen- my service in Congress, as others have message? tleman from California [Mr. DUNCAN done, I have devoted myself to improv- In a similar vein, the gentlewoman HUNTER], requires a report on the mis- ing human rights conditions in many from Florida [Mrs. TILLIE FOWLER] sile defense needs of Taiwan, and calls of the forgotten places around the would deny visas to those officials in- for sales of missile defense technology world. Therefore, I do appreciate the volved in China’s odious practice of to Taiwan as soon as possible, so they work of the gentleman, as well as the forced abortions. They are bad enough, can meet this threat. Committee on International Relations H10058 CONGRESSIONAL RECORD — HOUSE November 5, 1997 chairman, the gentleman from New offer their own amendments on the As I say, there are very deep and dis- York [Mr. GILMAN), and the ranking floor. turbing problems which do need to be member, the gentleman from Indiana Mr. Speaker, I believe that speed and addressed, and we are today taking a [Mr. HAMILTON] for their continued efficiency are necessary when impor- proactive position in trying to look at focus on China’s human rights abuses. tant issues such as human rights come those. China’s brutal suppression of religious up. But under this rule, we are sacrific- I think that we need to shift the pol- and political freedoms are well known. ing too much of the rights of House icy of debate simply on the issue of China has cracked down on political Members and risking making too many trade toward those ways that we can dissent, imprisoned and tortured people mistakes to consider the China legisla- promote our American values, the for their religious beliefs, and sup- tive package. Western values of human freedom, de- ported the proliferation of weapons of I would urge my colleagues to reject mocracy, the rule of law, and respect mass destruction. this rule and a very flawed process. for international norms. That is why I China continues forced abortions for Mr. Speaker, I reserve the balance of believe that when we look at the items many women who do not follow the my time. included in H.R. 2095, we do many of Mr. SOLOMON. Mr. Speaker, I yield 3 one-child-per-family policy, and the those things that need to be addressed. minutes and 30 seconds to the gen- House of Representatives and the Unit- One of them I think is very impor- tleman from Claremont, CA [Mr. ed States cannot remain silent on tant, and that is to increase funding DREIER], the vice chairman of the Com- these human rights abuses. for the National Endowment for De- mittee on Rules. He is an outstanding The United States must do more mocracy. We have been key toward en- supporter of human rights throughout than just talk about human rights couraging village elections throughout this world. I wish I had more time than abuses. We must take action that leads China. While some are critics of village 3 minutes to yield to him. There will be to improving the lives of the Chinese elections, I think that anything we can ample other time during the 10 hours of people. The bills before us today con- do to encourage democratization, even general debate. tain a number of creative approaches. if it is coming from the ground up Mr. DREIER. Mr. Speaker, I thank where we now have, unlike during the They are the result of a great deal of my friend for yielding me this time. effort by many House committees. It is Mao years, non-Communist candidates I rise in strong support of this rule and we have in fact secret ballots, an act of leadership and courage for us and to say that I am in agreement with to consider them. things that did not exist when village many of the points that my friend from elections were taking place decades b 1630 New York made. Probably the most im- ago, those are positive. The Inter- portant one to me is the fact that it is Unfortunately, I do not agree with national Republican Institute is on the true over the years we constantly focus the actions of the Committee on Rules front line toward helping literally hun- on the debate on whether or not we in moving the China package forward dreds of millions of people to partici- should renew most-favored-nation trad- under this process. I agree that there is pate there. ing status with the People’s Republic a sense of urgency, and in fact I wish There are many other items that we of China and then, while we have that the House had moved with strong- have included in this measure, funding talked about many things, we unfortu- er force to stop many human rights for Radio Free Asia and the Voice of nately do not get on that road toward abuses that I and others have pointed America, and I believe that we have a pursuing many of the very justifiable out over the past two decades. very good package by and large. There concerns that we have, and that is However, I believe that the speed of are some things in this measure which what this is all about today. concern me, but I do believe that those the process denies the opportunity for Before we had the vote on renewal of House Members to participate in the things that encourage greater political MFN earlier this year, the Speaker pluralism are things that we can sup- shaping of this legislation, and it in- asked my colleague from Illinois [Mr. creases the risk that the final product port as a country. PORTER] and me to put together a With that, I urge my colleagues to will not represent our best effort. For package which includes, in fact, an these reasons, I reluctantly oppose the support the rule. overwhelming majority of the items in- Mr. HALL of Ohio. Mr. Speaker, I rule. cluded in this legislation. We worked yield 9 minutes to the gentleman from Last night during consideration by with the gentleman from New York Indiana [Mr. HAMILTON], the ranking the Committee on Rules, the distin- [Mr. SOLOMON] and the gentleman from minority member of the Committee on guished ranking minority member of California [Mr. COX] and many other International Relations. the Committee on International Rela- Members who got involved in this proc- Mr. HAMILTON. Mr. Speaker, I tions, the gentleman from Indiana [Mr. ess, and in a bipartisan way we intro- thank the gentleman from Ohio for HAMILTON], testified he had serious duced H.R. 2095 with 40 cosponsors. And yielding me this time. substantial concerns about this pack- it is bipartisan; we have 14 Democrats I rise today to urge defeat of the rule. age of legislation. He also had serious who joined as cosponsors of that meas- I do so with some reluctance, but I am concerns about the process. He pointed ure. concerned that we are about to embark out that some of the bills had no hear- I am not going to stand here and be on a debate that is not going to reflect ings and there has been inadequate one of those that the gentleman from well on the House of Representatives. consultation with the administration New York [Mr. SOLOMON]) mentioned, We will set back U.S.-China relations and the intelligence community. The who is going to praise the Chinese Gov- and do harm to important American result, he warned, is likely to produce ernment or, in fact, say that they are interests. a flawed product that will not have the all very rich. I am a very strong critic Some of the bills that we will con- intent we seek and will not reflect well of the actions of the Government of the sider are acceptable; some are not. On on Congress. People’s Republic of China and those balance, I think bringing these bills The Committee on Rules did self-exe- concerns which all of us share. I am forward now will do more harm than cute amendments that will improve the not going to say that they are a rich good in the U.S.-China relationship. A package. I am thankful to the commit- country because they are not a rich China debate by the Congress is en- tee for making these changes and for country. tirely appropriate, if it is properly including Democratic amendments. But I will say that if we look at the done. I have got substantive and proce- However, this is the least preferable 5,000-year history of the People’s Re- dural concerns about this package. I way to make the changes. It puts the public of China, clearly, market re- am concerned about the cumulative Committee on Rules in the role of the forms have been the most powerful impact of this collection of bills. decisionmaker, circumventing the nor- force for change, and our commercial The administration opposes almost mal committee process, and denies the relations with the People’s Republic of all of these bills. I do not assume that opportunity for all House Members to China have been integral toward pursu- the administration is right in all cases vote on the self-executing amend- ing those reforms which have addressed and the House wrong, but I am troubled ments. With one exception, House many of the concerns that exist among that no process was followed to try to Members are denied the opportunity to the 1.3 billion people. work out the differences on the bills. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10059 Let me just say a word about the re- We have not had a single hearing on er, I ask my colleagues to vote no on lationship with China. It is a terribly several of the bills. Consultation with this rule. complex relationship. It is one of the the administration has been limited Mr. SOLOMON. Mr. Speaker, could most difficult foreign policy relation- and in some cases nonexistent. Admin- the Chair advise us how much time re- ships in the world to manage, even in istration positions and preferences mains on both sides? the best of times. The relationship have been ignored without even an ef- b 1645 often makes us uncomfortable. China fort to take the views of the executive as a country has many faults and does branch into account. Members have The SPEAKER pro tempore (Mr. CAL- many things we do not like. The two been denied an opportunity to offer se- VERT). The gentleman from New York 1 countries have vastly different perspec- rious and substantive amendments. A [Mr. SOLOMON] has 11 ⁄2 minutes re- tives on a whole host of problems, as flawed process is likely to produce a maining. The gentleman from Ohio 1 was obvious to all of us who heard flawed result. In terms of substance, [Mr. HALL] has 17 ⁄2 minutes remaining. President Jiang Zemin for even a few the deficiencies of this package are ap- Mr. SOLOMON. Mr. Speaker, I yield 2 minutes last week. parent. minutes to the gentleman from Ne- But China is too big and too impor- Some of the bills, such as the one on braska [Mr. BEREUTER], the very dis- tant to ignore. Notwithstanding our cruise missiles to Iran, make very close tinguished member of the Committee differences, we do have many common judgments concerning the violation of on Foreign Affairs. He came with me to interests with China. The relationship existing laws without adequate intel- this body 19 years ago and he is a very has deteriorated very badly since 1989. ligence briefings or consultations. respected Member in Lincoln, NE. We have just concluded an important Some of the measures before us are (Mr. BEREUTER asked and was summit meeting between the President overly broad or vague. I might mention given permission to revise and extend of the United States and the President the two bills that deny U.S. visas to his remarks.) of China. I think that summit served large numbers of unspecified Chinese. Mr. BEREUTER. Mr. Speaker, I real purposes and it put the U.S.-China Some of the bills fail to take into ac- thank the gentleman from New York dialogue back on track. We have got count probable Chinese reactions and [Mr. SOLOMON] for yielding me the very tough problems ahead of us. how these could affect American inter- time. China has a long way to go before its ests. As chairman of the Subcommittee on behavior is acceptable to the inter- It would, for example, not serve U.S. Asia and the Pacific and as someone national community. But looking over interests if China were to bar admis- who has carefully followed events in the last 25 years, China has evolved sion into China for Billy Graham or the People’s Republic of China for some from a country ostracized by much of other American religious leaders in re- time, this Member rises to address the the world to a more acceptable and ac- taliation for our denying visas to their legislative initiative orchestrated by cepted member of the global commu- religious officials. Some of the bills, the gentleman from New York [Mr. nity, although it is not there yet, by such as the Taiwan ballistic missile de- SOLOMON], distinguished chairman of any measure. velopment bill, could be counter- the Committee on Rules, and the gen- I believe that China is making productive and produce a result very tleman from California [Mr. COX]. progress toward a market economy and different from what we intend. Some of The legislative package that is before a deeper integration into the world and the bills, including H.R. 2570 on forced this body today contains a great many has taken some steps toward a more abortion and H.R. 967 on religious per- provisions that this gentleman fully open and accountable society. Even on secution, certainly worthy in their pur- supports. Some of the amendments the most difficult aspect of our rela- pose, would create administrative made in order seem very appropriate. tionship, human rights, personal free- nightmares for those responsible for Others will be examined in debate. And dom has expanded in recent years as a their execution. In short, these are far- some, perhaps, should be offered but result of economic growth, and there reaching bills with major substantive cannot be offered. But I do believe a has been some easing of governmental problems. structured rule was essential. authority over everyday life. One question I ask is, what is the The initiative on Radio Free Asia has I acknowledge that China has a very hurry? The Senate is not scheduled to been authored by the distinguished long way to go, and I agree with many take up these bills this year. We are gentleman from California [Mr. of the protests against certain aspects about to adjourn. We have time to take ROYCE], an initiative also proposed by of China policy. No one of us can guar- a more deliberative approach and to the gentleman from New Jersey [Mr. antee the future. Direct conflict with produce a better product. I, of course, SMITH] and this Member and rec- China cannot be ruled out. We are at a endorse the right and the responsibil- ommended by our distinguished Speak- moment of decision with China. Either ity of the Congress to express its views er. It is a common sense proposal that China will decide to live by the rules on important foreign policy issues, but would facilitate the flow of unfiltered that bind the rest of the international our institutional right should be care- information to tens of millions of Chi- community or it will go off on its own, fully and deliberately exercised. nese. a threat to its neighbors and to vital On these delicate matters of foreign Similarly, an initiative supporting U.S. interests. We are not going to con- policy toward China, we should consult ballistic missile defense for Taiwanese trol that decision, but we can influence closely and work cooperatively with is unfortunately now merited, as is the it. It is in this context that the House the President. It simply does not help proposal for additional State Depart- takes up this package of legislation. American foreign policy for the Con- ment personnel to monitor human Cumulatively, these measures will be gress to charge off in one direction and rights conditions. These are all worth- perceived as anti-China bills. What the President in another. That is pre- while initiatives. concerns me most about the package of cisely what we are doing as we consider However, Mr. Speaker, there is the high bills and some of the rhetoric that will these bills. prospect for a frenetic overtone to this unfold- accompany them is that the House will A process should be followed that is ing debate. The underlying psychology of be perceived as demonizing China and unhurried and deliberate. We need to some of my colleagues seems to be to regain China may very well respond in kind. make every effort to debate China pol- the initiative vis-a-vis the PRC. Mr. Speaker, I do not believe it serves American icy at a time and in a manner that does the United States never lost the initiative. interests today to paint China, with all not frustrate the President’s ability to The United States is the preeminent military, of its faults and with all of the con- conduct U.S. foreign policy. I do not economic, and political power in the world cerns we have about its conduct, as a think we have met those responsibil- today. Yes, it is true that China, together with second evil empire. That is not the pre- ities. much of the rest of Asia, has experienced scription for a productive relationship. My concern is that we are about to major growthÐbut that is not a threat to us. While I support some of the measures rush into actions that will not reflect This Member is a realistÐwe should not be before us today, as a whole I do not favorably on the House of Representa- creating enemies where none need exist. think these bills have been well consid- tives and could damage the Nation’s in- Mr. Speaker, this Member fully shares the ered. terests. For these reasons, Mr. Speak- hope, desire, and commitment that human H10060 CONGRESSIONAL RECORD — HOUSE November 5, 1997 rights and democracy will flourish within the As a mother of four, I know that per- the ugly face capitalism, the utiliza- PRC. By focusing on the details of very spe- fection is not an option, and I certainly tion of a system that permits extraor- cific human rights abuses that one finds in to- agree with many speakers that this dinary profits for major investors be- day's headlines, it is easy to ignore the dra- rule is not perfect. Nevertheless, I feel cause of the lack, the total lack, of matic, undeniable progress that has occurred, that it is timely and that it brings labor rights existing in that country. and continues to occur. The China of today many important subjects to our atten- Now, with that ugly face of capital- simply is not the China with which President tion. I would say to our colleagues who ism and the increase of the gross do- Richard Nixon forged an opening in 1972. disagree with some of these resolutions mestic product that is occurring in Rather, today's China is vibrant and rapidly and proposed amendments, vote China may come, and it always does changing. It is dynamic. In terms of personal against them. I may vote against some, with GDP, comes military power. I am prosperity, in terms of individual choice, in too. But do not vote against this rule. convinced that unless the Chinese peo- terms of access to outside sources of informa- Let me make a couple of other ple are able to throw off the yoke of tion and freedom of movement within the points. Last week, as has been noted, their oppressors, our children, Mr. country, the Chinese undeniably enjoy in- the President of China was here. I Speaker, and their children will have creased freedom. Public dissent, however, is thought his visit was very productive. I to face very dangerous consequences, severely limited. support the economic relationship with perhaps horrible consequences, the Moreover, just last year modest legal re- China and have voted twice against dis- massive capital and technology trans- forms were advanced in the area of criminal continuing most-favored-nation status fer that China is benefiting from today. procedures which make it more likely that indi- for China. That does not mean, how- So I believe that it is important that viduals will be considered innocent until prov- ever, that I think that issues concern- we make the statement and that we en guilty, will have the right to a lawyer at the ing human rights and proliferation are take the substantive steps that we will time of detention, and will be able to challenge unimportant. I think they are very im- be taking with these bills. It is, obvi- the arbitrary powers of the police. Although portant. And this is our opportunity to ously, very difficult for the people of these reforms have far too many conditions or address those, too, and to address those China to free themselves when inter- limitations that permit the government to sup- in a timely way before we adjourn. national capitalism is pouring billions press political dissent, they nonetheless rep- On one subject, I would like to make of dollars into the coffers of the com- resent progress toward rule of law in China. a further point; and that is the lan- munist oppressors, billions that they All the village level, it would seem that a re- guage in this rule that automatically use to maintain their oppressive appa- markable transformation has taken place with- reports the text of House Concurrent ratus. We can and I believe we must, out anyone noticing. Village elections, once Resolution 121 into House Resolution and I believe the Congress is in fact the sole domain of local communist party func- 188. Resolution 188 is offered by the saying with these bills, we do not ac- tionaries, have in many but far from all cases, gentleman from New York [Mr. GIL- cept the status quo, we want freedom suddenly become contested eventsÐwith non- MAN], and it concerns proliferation of for China. communists elected to some posts. This Mem- missile technology from China to Iran. Mr. HALL of Ohio. Mr. Speaker, I ber is not pretending that very serious, deeply The addition to the other language is yield 3 minutes to the gentleman from rooted problems do not continue; they do. But the full text of an amendment I have Mississippi [Mr. TAYLOR]. the critics of the PRC should stop pretending offered that has been reported unani- Mr. TAYLOR of Mississippi. Mr. that conditions for the average individual in mously by the Committee on House Speaker, I thank the gentleman from China has not dramatically improved; of International Relations and has also Ohio [Mr. HALL] for yielding me the course, that varies greatly from region to re- been introduced in the other body, with time. gion in China. many cosponsors, to direct the admin- Mr. Speaker, I would like to point Mr. Speaker, this Member is abso- istration to impose sanctions on Rus- out that this whole debate reminds me lutely convinced that democracy and sian firms that are engaging in missile of a chapter of a book called ‘‘365 broader respect for human rights inevi- Days,’’ where a doctor, Dr. Glasser, tably will come to China. There is no proliferation to Iran. That is as urgent a threat as the Chinese proliferation. who treated patients during the Viet- way the Chinese leaders in Beijing can nam war, makes mention of the fact prevent the flow of information and Combining the two makes the point more effectively. I look forward to a that our medics during the Vietnam ideas into their country. We can have conflict, when soldiers were so severely at least some effect here, either posi- time later today when both will be passed. wounded that there was nothing that tive or negatively. could be done for them, would often Simply put, Mr. Speaker, as Presi- In conclusion, Mr. Speaker, I urge give them a sweettart and tell the dent Clinton said, time is on our side. strong support of this rule and com- dying soldier that it was for the pain; The objective that everyone will pro- mend those involved for a very fair and fess so loudly on this floor today will complete process. and somehow the soldiers, wanting to come in time if we do not blow it. Mak- Mr. SOLOMON. Mr. Speaker, I yield 2 think they would get better, would ac- ing China our adversary will not ad- minutes to the gentleman from Florida tually feel better. That is about what these bills do. It vance political nor religious rights, nor [Mr. DIAZ-BALART], one of the true de- is like giving a dying soldier a will it advance the security of Taiwan. fenders of human rights in this body. This Member would, therefore, sim- He is a member of our Committee on sweettart. It does not save him. But ply urge, in the course of today’s de- Rules. maybe it is a psychological thing for bate, that a measure of past-to-present Mr. DIAZ-BALART. Mr. Speaker, the American people that somehow we analysis and a long-term perspective these nine bills that I strongly support will feel better about the fact that one on what is actually in America’s na- bringing to the floor through this rule of the world’s most brutal dictatorial tional interest should be applied to the make a necessary statement, Mr. regimes has a $40 billion trade surplus debate about to unfold on the various Speaker, a statement that I think, un- with our country and that they use resolutions in the China legislative fortunately, has not been made by the that money to arm our votes. package the rule makes in order today. President of the United States. I cer- I would hope that people would vote Mr. HALL of Ohio. Mr. Speaker, I tainly have not heard the President of against this rule. Because I would like yield 2 minutes to the gentlewoman the United States make it. And that is to offer an amendment to where, if we from California [Ms. HARMAN]. very clear, very simple, we want China are really going to address the trade (Ms. HARMAN asked and was given to be free. problems and the wrongs in the Peo- permission to revise and extend her re- Yes, we recognize that China cannot ple’s Republic of China, why do we not marks.) be ignored, but we want freedom for do something very simple, why do we Ms. HARMAN. Mr. Speaker, I rise in the Chinese people. The reality of the not instruct our trade agencies and the strong support of this rule and com- matter, Mr. Speaker, is the inter- people responsible for tariffs to, on a mend the gentleman from New York national community generally is today quarterly basis, look and see what the [Mr. SOLOMON], chairman of the Com- engaged in a policy of massive capital Chinese charge us for access to their mittee on Rules, for his care and fair- and technology transfers to China in markets and then adjust our tariffs to ness in drafting it. the context of what I would refer to as meet theirs. It is called fairness. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10061 That bill is already drafted. I would The recent visit of President Jiang tees of jurisdiction with holding hear- like the opportunity to offer it as an Zemin has focused the attention of the ings and reporting out appropriate leg- amendment. The gentleman from New American people on our relations with islation tailored to these separate con- York [Mr. SOLOMON] is the chairman of the People’s Republic of China in a cerns. the Committee on Rules. I would like very constructive way. To the extent Six of our standing committees have an open rule so that one of these bills that the summit was meant to promote now fulfilled that charge and sent to could be amended to do just that. cordial relations between our two the floor nine separate pieces of legis- Mr. SOLOMON. Mr. Speaker, will the states and friendly dialog, it was a suc- lation that contain discrete and meas- gentleman yield? cess. For President Jiang was warmly ured responses to each of the serious is- Mr. TAYLOR of Mississippi. I yield received, he was provided a 21-gun sa- sues in our bilateral relationship with to the gentleman from New York. lute, a State dinner, a breakfast here the People’s Republic of China. Mr. SOLOMON. Mr. Speaker, let me on Capitol Hill with our congressional b 1700 say to the gentleman from Mississippi leadership, and he even had a chance to [Mr. TAYLOR] that we have a protocol address the American people on the Together these bills comprise a very that we have followed that we cleared ‘‘McNeil-Lehrer News Hour.’’ positive policy for freedom that does with the Democratic minority that we Because we respect his position as not involve MFN but that does provide would only consider those bills that the head of the Communist Party and needed clarity to these important is- have been reported from the commit- as the President of the People’s Repub- sues. tees. lic of China, and because we recognize This effort remains thoroughly bipar- The gentleman from Missouri [Mr. the importance of cordial relations tisan. I want to recognize the hard GEPHARDT], as a matter of fact, has a with the world’s most populous nation, work and the positive contributions of bill dealing with the WTO that I am his we received him properly and openly. the Democrats as well as Republicans major cosponsor of. We could not make But there is more to our relationship who have put this package together. It that in order, Mr. GEPHARDT under- than summitry and warm expressions is the reason that I am addressing stands that, because the Committee on of goodwill. We also must do the hard Members from the minority side of the Ways and Means would not report it work of hammering out our distinc- aisle. I wanted to walk across to tan- unfortunately. tions on security issues, on the pro- gibly illustrate just how much we have I would like to cosponsor the gentle- liferation of technology for weapons of worked together with the gentleman man’s legislation if he introduces it, mass destruction, and on human from Missouri [Mr. GEPHARDT], the mi- and I will do everything I can to help rights, all of which are of fundamental nority leader; with the gentlewoman him move it. from California [Ms. PELOSI] and the Mr. TAYLOR of Mississippi. Mr. importance, not just to the peoples of gentleman from California [Mr. LAN- Speaker, I think the gentleman from our countries, but to the people of the TOS], as well as the authors of the leg- New York [Mr. SOLOMON] has just made whole world. islation that we will be considering: my point. I think we ought to have an For many years, United States policy The gentleman from Illinois [Mr. POR- open rule. I do not think a handful of toward the People’s Republic of China TER], the gentleman from California people in the Republican leadership or has been mired in debate over MFN [Mr. DREIER], the gentleman from New a handful of people in the Democratic status, most favored nation trade sta- York [Mr. GILMAN], the gentleman leadership or just those people who are tus for the People’s Republic of China. from Nebraska [Mr. BEREUTER], the fortunate enough to serve on the Com- This is a stalemate that has frustrated mittee on Ways and Means should all sides of the debate and hindered the gentleman from New York [Mr. SOLO- make this decision. I think everyone in development of a coherent China policy MON], the gentleman from South Caro- this House should make the decision that addresses the diverse aspects of lina [Mr. SPENCE], the gentlewoman where we seek some basic level of fair- our relationship, many of which have from Florida [Mrs. FOWLER], the gen- ness between what we charge the Chi- little, if anything, to do with trade. tlewoman from Florida [Ms. ROS- nese, which is almost nothing, to have The attempt to refract every element LEHTINEN], the gentleman from Califor- access to our markets, which indeed in of our policy toward the People’s Re- nia [Mr. HUNTER], the gentleman from many instances are made by slave public of China through this single an- New Jersey [Mr. SMITH], and the gen- labor, and they are charging us any- nual debate on trade policy has failed tleman from California [Mr. ROYCE] as where from 30 to 40 percent for our to do justice to what the gentleman well as scores of our colleagues. goods and they have a 40-percent trade from Indiana [Mr. HAMILTON] rightly Our policy for freedom supports a surplus with our country, which means observes as a complex relationship. Be- growing, positive relationship with a they are the winner. cause the choice presented in the MFN free China and it recognizes that the All I want is fairness and opportunity debate was binary, it was like a light people of China are not the same as the for Members of this body to decide switch on and off, we could not cali- regime in China. whether or not we can have that level brate our responses to the nuance and Mr. Speaker, I would like to conclude of fairness. For that reason, and espe- change in the relationship. Even worse, with a brief story from Chinese his- cially since the gentleman from New the threat of MFN denial lost credibil- tory, and a thought: York [Mr. SOLOMON], chairman of the ity with China’s Government, provid- When the Ming Dynasty replaced the distinguished Committee on Rules, ing the United States with little lever- Mongols in the 14th century, China em- would like the opportunity to vote for age on either trade or nontrade issues. barked on its own Age of Exploration, that bill, I would encourage every To move beyond this stalemate, the an era that antedated, and rivaled in Member of this body to vote against House adopted House Resolution 461 a every respect, the exploration and the the rule so that it would be open for de- year and a half ago, in June 1996. This discovery that was going on in Europe bate so we have an opportunity to vote resolution passed the House with bipar- at the time. Chinese fleets scoured the on just that. tisan support. Let me quantify what I Indian Ocean. They visited Indonesia, Mr. HALL of Ohio. Mr. Speaker, I mean by ‘‘bipartisan support.’’ The Ceylon, even the Red Sea and Africa, yield back the balance of my time. vote was 411–7. It is stated, the debate where they brought back giraffes to Mr. SOLOMON. Mr. Speaker, I yield over Communist China’s most favored surprise and amaze people back home. such time as he may consume to the nation trade status cannot bear the But this is where Chinese exploration gentleman from California [Mr. COX], weight of the entire relationship be- ended. Who knows? With a little more who is most responsible for bringing all tween the United States and the Peo- wind, they might have rounded the of this legislation to the floor. He is ple’s Republic of China. Instead, the Cape of Good Hope before the Por- the chairman of our policy committee bill enumerated in detail a series of tuguese. They might have reached Eu- for the Republican Party. concerns about the activities of the rope. They might even have discovered Mr. COX of California. Mr. Speaker, I Communist Chinese military, about America. thank the chairman, the gentleman China’s human rights record and about Today, the irrepressible dreams of from New York [Mr. SOLOMON] for their economic and trade policy, and it human freedom live on in China’s di- yielding me the time. charged the standing House commit- verse and tolerant peoples. But China’s H10062 CONGRESSIONAL RECORD — HOUSE November 5, 1997 explorers and discoverers are kept friend from California, Mr. COX, for his steady Riggs Shimkus Thomas Rogan Shuster Thornberry down by the worst of the 20th century’s leadership in this crucial national security Rogers Skeen Thune legacies, the last vestiges of totali- area. I intend to maintain a clear and high pri- Rohrabacher Smith (MI) Tiahrt tarianism, which also live on still in ority focus on China in my capacity as chair- Ros-Lehtinen Smith (NJ) Traficant Communist China. man of HPSCI. Roukema Smith (OR) Upton Royce Smith (TX) Walsh It is my hope that as we close the Mr. SOLOMON. Mr. Speaker, I yield Ryun Smith, Linda Wamp 20th century, America, whose unique back the balance of my time, and I Salmon Snowbarger Watkins mission in the world is to promote free- move the previous question on the res- Sanford Solomon Watts (OK) dom, can provide the Chinese people Saxton Souder Weldon (FL) olution. Scarborough Spence Weldon (PA) with a little wind at their back so that The previous question was ordered. Schaefer, Dan Stabenow Weller this time they will round the corner, The SPEAKER pro tempore [Mr. CAL- Schaffer, Bob Stearns White Sensenbrenner Stump Whitfield this time they really will be free, and VERT ]. The question is on the resolu- Sessions Sununu Wicker so that our friendship will truly be tion. Shadegg Talent Wolf strong and the world will be a much The question was taken; and the Shaw Tauzin Young (AK) safer place. Speaker pro tempore announced that Shays Taylor (NC) Young (FL) Mr. Speaker, I thank the gentleman the ayes appeared to have it. NAYS—184 from New York [Mr. SOLOMON] for Mr. HALL of Ohio. Mr. Speaker, I ob- Ackerman Hall (OH) Obey bringing this package together with ject to the vote on the ground that a Allen Hamilton Olver the cooperation of both majority and quorum is not present and make the Andrews Hastings (FL) Owens minority Members and for the splendid Baesler Hefner Pallone point of order that a quorum is not Baldacci Hilliard Pascrell debate that I know that we will have in present. Barcia Hinchey Pastor the next 10 hours. The SPEAKER pro tempore. Evi- Barrett (WI) Hinojosa Payne Becerra Holden Peterson (MN) Mr. SOLOMON. Mr. Speaker, I yield dently a quorum is not present. such time as he may consume to the Bentsen Hooley Pickett The Sergeant at Arms will notify ab- Berman Hoyer Pomeroy gentleman from Florida [Mr. GOSS]. sent Members. Berry Jackson (IL) Poshard (Mr. GOSS asked and was given per- Bishop Jackson-Lee Price (NC) The vote was taken by electronic de- mission to revise and extend his re- Blagojevich (TX) Rahall vice, and there were—yeas 237, nays marks.) Blumenauer Jefferson Rangel 184, not voting 12, as follows: Bonior John Reyes Mr. GOSS. Mr. Speaker, I rise in sup- Borski Johnson, E. B. Rivers port of this rule. [Roll No. 578] Boswell Kanjorski Rodriguez I thank the distinguished chairman of the YEAS—237 Boucher Kaptur Roemer Boyd Kennedy (MA) Rothman Abercrombie Ehrlich Kind (WI) Rules Committee, Mr. SOLOMON, for yielding Brown (CA) Kennedy (RI) Roybal-Allard Aderholt Emerson King (NY) time and I rise in strong support of this fair Brown (OH) Kennelly Rush Archer English Kingston Cardin Kildee Sabo rule to expedite the consideration of these Armey Ensign Klug Carson Kilpatrick Sanchez nine important initiatives. Bachus Eshoo Knollenberg Clay Kleczka Sanders Baker Everett Kolbe Mr. Speaker, we are nearing the end of the Clayton Klink Sandlin Ballenger Ewing LaHood session and we are taking steps to ensure full Clement Kucinich Sawyer Barr Fawell Largent Clyburn LaFalce Scott debate on these important topics without bog- Barrett (NE) Foley Latham Condit Lampson Serrano Bartlett Forbes LaTourette ging the House down in days and days of Costello Lantos Sherman Barton Fossella Lazio speechmaking. This rule strikes a responsible Coyne Levin Sisisky Bass Fowler Leach Cramer Lewis (GA) Skaggs balance. In my view it is well past time that Bateman Fox Lewis (CA) Cummings Lipinski Skelton Congress send a clear message challenging Bereuter Franks (NJ) Lewis (KY) Danner Lofgren Slaughter Bilbray Frelinghuysen Linder the human rights conduct, weapons prolifera- Davis (FL) Lowey Smith, Adam Bilirakis Furse Livingston tion, and hostile intelligence activity of the Davis (IL) Luther Snyder Bliley Gallegly LoBiondo DeFazio Maloney (CT) Spratt People's Republic of China. As chairman of Blunt Ganske Lucas DeGette Maloney (NY) Stark Boehlert Gekas Manzullo the Permanent Select Committee on Intel- Delahunt Manton Stenholm Boehner Gibbons McCarthy (NY) ligence, I have been closely following these DeLauro Markey Stokes Bonilla Gilchrest McCollum Dellums Martinez Strickland and other issues to be discussed today. We Bono Gillmor McCrery Dicks Mascara Stupak have examined the activities of Chinese intel- Brady Gilman McDade Dingell Matsui Tanner Bryant Goode McHugh ligence and military officers in the United Dixon McCarthy (MO) Tauscher Bunning Goodlatte McInnis States and we have studied the evidence of Doggett McDermott Taylor (MS) Burr Goodling McIntosh Dooley McGovern Thompson proliferation by China of weapons of mass de- Burton Goss McKeon Doyle McHale Thurman Buyer Graham Metcalf struction. We have also closely examined the Edwards McIntyre Tierney Callahan Granger Mica brutal conduct of the Chinese Government to- Engel McNulty Torres Calvert Greenwood Miller (FL) Etheridge Meehan Towns ward many of its own citizens. The record is Camp Gutknecht Moran (KS) Evans Meek Turner clear and tremendously unsettlingÐit is not Campbell Hall (TX) Moran (VA) Farr Menendez Velazquez Canady Hansen Myrick one of freedom, but one of repression. China, Fattah Millender- Vento Cannon Harman Nethercutt whether we like it or not, is one of the single Fazio McDonald Visclosky Castle Hastert Neumann Filner Miller (CA) Waters greatest national security concerns facing us Chabot Hastings (WA) Ney Ford Minge Watt (NC) Chambliss Hayworth Northup today. Frank (MA) Mink Waxman Chenoweth Hefley Norwood Today we are finally taking concrete action, Frost Moakley Wexler Christensen Herger Nussle Gejdenson Mollohan Weygand some basic steps to demonstrate our real con- Coble Hill Ortiz Gephardt Murtha Wise cern about the intentions and activities of the Coburn Hilleary Oxley Gordon Nadler Woolsey Collins Hobson Packard Chinese regime. Through these nine bills we Green Neal Wynn Combest Hoekstra Pappas will encourage enforcement of the 1992 Iran- Gutierrez Oberstar Yates Cook Horn Parker Iraq Nonproliferation Act. We will monitor the Cooksey Hostettler Paul NOT VOTING—12 access of and deny United States subsidies Cox Houghton Paxon Brown (FL) Foglietta Petri Crane Hulshof Pease and United States visas to Chinese intel- Conyers Gonzalez Riley Crapo Hunter Pelosi Cubin McKinney Schiff ligence officers and others who work against Cunningham Hutchinson Peterson (PA) Flake Morella Schumer America and its interests. We will promote Davis (VA) Hyde Pickering human rights in China and punish those who Deal Inglis Pitts b 1729 persecute, who perform abortions, and who DeLay Istook Pombo Deutsch Jenkins Porter exploit forced labor. In short, we will define a The Clerk announced the following Diaz-Balart Johnson (CT) Portman pair: congressional agenda toward China, one of Dickey Johnson (WI) Pryce (OH) freedom and tolerance. Doolittle Johnson, Sam Quinn On this vote: Mr. Speaker, I applaud the efforts of all Dreier Jones Radanovich Mr. Riley for, with Ms. McKinney against. Duncan Kasich Ramstad Members who have helped bring these impor- Dunn Kelly Redmond Messrs. JACKSON of Illinois, tant bills to the floor. I especially commend my Ehlers Kim Regula CUMMINGS, REYES, and ADAM November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10063 SMITH of Washington changed their ‘counterrevolutionary crimes’ or ‘crimes and Hong Kong, $2,200,000 for fiscal years 1998 vote from ‘‘yea’’ to ‘‘nay.’’ against the state’ and for peaceful political and $2,200,000 for fiscal year 1999. So the resolution was agreed to. or religious activities are believed to number The SPEAKER pro tempore. Pursu- in the thousands’’. The result of the vote was announced (F) ‘‘[n]on-approved religious groups, in- ant to House Resolution 302, the as above recorded. cluding Protestant and Catholic groups . . . amendments printed in the bill and the A motion to reconsider was laid on experienced intensified repression’’. amendments printed in part 1–A of the table. (G) ‘‘[s]erious human rights abuses persist House Report 105–336 are adopted. f in minority areas, including Tibet, Zinjiang, The text of H.R. 2358, as amended and Inner Mongolia[, and] [c]ontrols on reli- pursuant to House Resolution 302, is as b 1730 gion and other fundamental freedoms in follows: these areas have also intensified’’. PERMISSION TO CONSIDER MEM- (H) ‘‘[o]verall in 1996, the authorities H.R. 2358 BER AS FIRST SPONSOR OF H.R. stepped up efforts to cut off expressions of Be it enacted by the Senate and House of Rep- 2009 protest or criticism. All public dissent resentatives of the United States of America in against the party and government was effec- Congress assembled, Mr. GILMAN. Mr. Speaker, I ask tively silenced by intimidation, exile, the SECTION 1. SHORT TITLE. unanimous consent that I may here- imposition of prison terms, administrative This Act may be cited as the ‘‘Political after be considered as the first sponsor detention, or house arrest. No residents were Freedom in China Act of 1997’’. of H.R. 2009, a bill initially introduced known to be active at year’s end.’’. SEC. 2. FINDINGS. (2) In addition to the State Department, by former Representative Capps of The Congress makes the following findings: credible independent human rights organiza- California, for the purposes of adding (1) The Congress concurs in the following tions have documented an increase in repres- cosponsors and requesting reprintings conclusions of the United States State De- sion in China during 1996, and effective de- partment on human rights in the People’s pursuant to clause 4 of rule XXII. struction of the dissident movement through Republic of China in 1996: The SPEAKER pro tempore (Mr. CAL- the arrest and sentencing of the few remain- (A) The People’s Republic of China is ‘‘an VERT). Is there objection to the request ing pro-democracy and human rights activ- authoritarian state’’ in which ‘‘citizens lack ists not already in prison or exile. of the gentleman from New York? the freedom to peacefully express opposition (3) Among those were Wang Dan, a student There was no objection. to the party-led political system and the leader of the 1989 pro-democracy protests, f right to change their national leaders or sentenced on October 30, 1996, to 11 years in form of government’’. prison on charges of conspiring to subvert POLITICAL FREEDOM IN CHINA (B) The Government of the People’s Repub- the Government; Li Hai, sentenced to 9 years ACT OF 1997 lic of China has ‘‘continued to commit wide- in prison on December 18, 1996, for gathering spread and well documented human rights Ms. ROS-LEHTINEN. Mr. Speaker, information on the victims of the 1989 crack- abuses, in violation of internationally ac- down, which according to the court’s verdict pursuant to House Resolution 302, and cepted norms, stemming from the authori- constituted ‘‘state secrets’’; and Liu as the designee of the chairman of the ties’ intolerance of dissent, fear of unrest, Nianchun, an independent labor organizer, Committee on International Relations, and the absence or inadequacy of laws pro- sentenced to 3 years of ‘‘re-education I call up the bill (H.R. 2358) to provide tecting basic freedoms’’. through labor’’ on July 4, 1996, due to his ac- (C) ‘‘[a]buses include torture and mistreat- for improved monitoring of human tivities in connection with a petition cam- ment of prisoners, forced confessions, and ar- rights violations in the People’s Repub- paign calling for human rights reforms. bitrary and incommunicado detention’’. lic of China, and ask for its immediate (4) Many political prisoners are suffering (D) ‘‘[p]rison conditions remained harsh consideration. from poor conditions and ill-treatment lead- [and] [t]he Government continued severe re- ing to serious medical and health problems, The Clerk read the title of the bill. strictions on freedom of speech, the press, including— The SPEAKER pro tempore. The bill assembly, association, religion, privacy, and (A) Wei Jingsheng, sentenced to 14 years in is considered read for amendment. worker rights’’. prison on December 13, 1996, for conspiring to (E) ‘‘[a]though the Government denies that The text of H.R. 2358 is as follows: subvert the government and for ‘‘commu- it holds political prisoners, the number of H.R. 2358 nication with hostile foreign organizations persons detained or serving sentences for Be it enacted by the Senate and House of Rep- and individuals, amassing funds in prepara- ‘counterrevolutionary crimes’ or ‘crimes resentatives of the United States of America in tion for overthrowing the government and against the state’, or for peaceful political or Congress assembled, publishing anti-government articles religious activities are believed to number in abroad,’’ is currently held in Jile No. 1 Pris- SECTION 1. SHORT TITLE. the thousands’’. on (formerly the Nanpu New Life Salt Farm) This Act may be cited as the ‘‘Political (F) [n]onapproved religious groups, includ- in Hebei province, where he reportedly suf- Freedom in China Act of 1997’’. ing Protestant and Catholic groups . . . ex- fers from severe high blood pressure and a SEC. 2. FINDINGS. perienced intensified repression’’. heart condition, worsened by poor conditions The Congress makes the following findings: (G) ‘‘[s]erious human rights abuses persist of confinement; (1) The Congress concurs in the following (B) Gao Yu, a journalist sentenced to 6 in minority areas, including Tibet, Xinjiang, conclusions of the United States Department years in prison on November 1994 and hon- and Inner Mongolia[, and] [c]ontrols on reli- on human rights in the People’s Republic of ored by UNESCO in May 1997, has a heart gion and on other fundamental freedoms in China in 1996: condition; and these areas have also intensified’’. (A) The People’s Republic of China is ‘‘an (C) Chen Longde, a leading human rights (H) ‘‘[o]verall in 1996, the authorities authoritarian state’’ in which ‘‘citizens lack advocate now serving a 3-year reeducation stepped up efforts to cut off expressions of the freedom to peacefully express opposition through labor sentence imposed without protest or criticism. All public dissent to the party-led political system and the trial in August 1995, has reportedly been sub- against the party and government was effec- right to change their national leaders or ject to repeated beatings and electric shocks tively silenced by intimidation, exile, the form of government’’. at a labor camp for refusing to confess his imposition of prison terms, administrative (B) The Government of the People’s Repub- guilt. detention, or house arrest. No dissidents lic of China has ‘‘continued to commit wide- (5) In 1997, only 1 official in the United were known to be active at year’s end.’’. spread and well documented human rights States Embassy in Beijing is assigned to (2) In addition to the State Department, abuses, in violation of internationally ac- human monitoring human rights in the Peo- credible independent human rights organiza- cepted norms, stemming from the authori- ple’s Republic of China, and no officials are tions have documented an increase in repres- ties’ intolerance of dissent, fear of unrest, assigned to monitor human rights in United sion in China during 1995, and effective de- and the absence or inadequacy of laws pro- States consulates in the People’s Republic of struction of the dissident movement through tecting basic freedoms’’. China. the arrest and sentencing of the few remain- (C) ‘‘[a]buses include torture and mistreat- ing pro-democracy and human rights activ- SEC. 3. AUTHORIZATION OF APPROPRIATIONS ment of prisoners, forced confessions, and ar- FOR ADDITIONAL PERSONNEL AT ists not already in prison or exile. bitrary and incommunicado detention’’. DIPLOMATIC POSTS TO MONITOR (3) Among those were Wang Dan, a student (D) ‘‘[p]rison conditions remained harsh HUMAN RIGHTS IN THE PEOPLE’S leader of the 1989 pro-democracy protests, [and] [t]he Government continued severe re- REPUBLIC OF CHINA. sentenced on October 30, 1996, to 11 years in strictions on freedom of speech, the press, There are authorized to be appropriated to prison on charges of conspiring to subvert assembly, association, religion, privacy, and support personnel to monitor political re- the Government; Li Hai, sentenced to 9 years worker rights’’. pression in the People’s Republic of China in in prison on December 18, 1996, for gathering (E) ‘‘[a]lthough the Government denies the United States Embassy in Beijing, as information on the victims of the 1989 crack- that it holds political prisoners, the number well as the American consulates in down, which according to the court’s verdict of persons detained or serving sentences for Guangzhou, Shanghai, Shenyang, Chengud, constituted ‘‘state secrets’’; Liu Nianchun, H10064 CONGRESSIONAL RECORD — HOUSE November 5, 1997 an independent labor organizer, sentenced to wise authorized to be appropriated for the such organs in the United States should be 3 years of ‘‘re-education through labor’’ on ‘‘National Endowment for Democracy’’ for prosecuted to the fullest possible extent of July 4, 1996, due to his activities in connec- fiscal years 1998 and 1999, there are author- the law; and tion with a petition campaign calling for ized to be appropriated for the ‘‘National En- (5) the appropriate officials in the United human rights reforms, and Ngodrup dowment for Democracy’’ $5,000,000 for fiscal States should interview individuals, includ- Phuntsog, a Tibetan national, who was ar- year 1998 and $5,000,000 for fiscal year 1999, ing doctors, who may have knowledge of rested in Tibet in 1987 immediately after he which shall be available to promote democ- such organ harvesting and transplanting returned from a 2-year trip to India, where racy, civil society, and the development of practice. the Tibetan government in exile is located, the rule of law in China. The SPEAKER pro tempore. After 1 and following a secret trial was convicted by (b) EAST ASIA-PACIFIC REGIONAL DEMOC- hour of debate on the bill, as amended, the Government of the People’s Republic of RACY FUND.—The Secretary of State shall it shall be in order to consider the fur- China of espionage on behalf of the ‘Ministry use funds available in the East Asia-Pacific ther amendment specified in part 1–B of Security of the Dalai clique’. Regional Democracy Fund to provide grants (4) Many political prisoners are suffering to nongovernmental organizations to pro- of the report, if offered by the gen- from poor conditions and ill-treatment lead- mote democracy, civil society, and the devel- tleman from New York [Mr. GILMAN], ing to serious medical and health problems, opment of the rule of law in China. or his designee, which shall be consid- including— SEC. 6. HUMAN RIGHTS IN CHINA. ered read and debatable for 30 minutes, (A) Wei Jingsheng, sentenced to 14 years in (a) REPORTS.—Not later than March 30, equally divided and controlled by the prison on December 13, 1996, for conspiring to 1998, and each subsequent year thereafter, proponent and an opponent. subvert the government and for ‘‘commu- the Secretary of State shall submit to the The gentlewoman from Florida [Ms. nication with hostile foreign organizations International Relations Committee of the ROS-LEHTINEN] and the gentleman from and individuals, amassing funds in prepara- House of Representatives and the Foreign New Jersey [Mr. MENENDEZ] each will tion for over-throwing the government and Relations Committee of the Senate an an- publishing anti-government articles control 30 minutes of debate on the nual report on human rights in China, in- bill. abroad,’’ is currently held in Jile No. 1 Pris- cluding religious persecution, the develop- on (formerly the Nanpu New Life Salt Farm) ment of democratic institutions, and the The Chair recognizes the gentle- in Hebei province, where he reportedly suf- rule of law. Reports shall provide informa- woman from Florida [Ms. ROS- fers from severe high blood pressure and a tion on each region of China. LEHTINEN]. heart condition, worsened by poor conditions (b) PRISONER INFORMATION REGISTRY.—The GENERAL LEAVE of confinement; Secretary of State shall establish a Prisoner Ms. ROS-LEHTINEN. Mr. Speaker, I (B) Gao Yu, a journalist sentenced to 6 Information Registry for China which shall ask unanimous consent that all Mem- years in prison on November 1994 and hon- provide information on all political pris- ored by UNESCO in May 1997, has a heart bers may have 5 legislative days within oners, prisoners of conscience, and prisoners which to revise and extend their re- condition; and of faith in China. Such information shall in- (C) Chen Longde, a leading human rights clude the charges, judicial processes, admin- marks on this measure. advocate now serving a 3-year reeducation istrative actions, use of forced labor, The SPEAKER pro tempore. Is there through labor sentence imposed without incidences of torture, length of imprison- objection to the request of the gentle- trial in August 1995, has reportedly been sub- ment, physical and health conditions, and woman from Florida? ject to repeated beatings and electric shocks other matters related to the incarceration of There was no objection. at a labor camp for refusing to confess his such prisoners in China. The Secretary of Ms. ROS-LEHTINEN. Mr. Speaker, I guilt. State is authorized to make funds available yield myself such time as I may (5) The People’s Republic of China, as a to nongovernmental organizations presently consume. member of the United Nations, is expected to engaged in monitoring activities regarding (Ms. ROS-LEHTINEN asked and was abide by the provisions of the Universal Dec- Chinese political prisoners to assist in the given permission to revise and extend laration of Human Rights. creation and maintenance of the registry. (6) The People’s Republic of China is a her remarks.) party to numerous international human SEC. 7. SENSE OF CONGRESS CONCERNING ES- Ms. ROS-LEHTINEN. Mr. Speaker, TABLISHMENT OF A COMMISSION rights conventions, including the Convention ON SECURITY AND COOPERATION IN the bill before us today, H.R. 2358, the Against Torture and Other Cruel, Inhuman ASIA. Political Freedom in China Act, is an or Degrading Treatment or Punishment. It is the sense of the Congress that Con- attempt to give the people of China a SEC. 3. CONDUCT OF FOREIGN RELATIONS. gress, the President, and the Secretary of voice. It is a message of support to the (a) RELEASE OF PRISONERS.—The Secretary State should work with the governments of human rights dissidents, to the politi- of State, in all official meetings with the other countries to establish a Commission on cal activists, to those who are per- Government of the People’s Republic of Security and Cooperation in Asia which secuted each and every day because China, should request the immediate and un- would be modeled after the Commission on they have the courage to stand up for conditional release of Ngodrup Phuntsog and Security and Cooperation in Europe. their beliefs and disagree with their other prisoners of conscience in Tibet, as SEC. 8. SENSE OF CONGRESS REGARDING DE- well as in the People’s Republic of China. MOCRACY IN HONG KONG. government. (b) ACCESS TO PRISONS.—The Secretary of It is the sense of the Congress that the peo- The message this bill sends is that State should seek access for international ple of Hong Kong should continue to have the United States Congress values the humanitarian organizations to Drapchi pris- the right and ability to freely elect their leg- right of the Chinese people to be free, on and other prisons in Tibet, as well as in islative representatives, and that the proce- to determine their fate, and to express the People’s Republic of China, to ensure dure for the conduct of the elections of the their will. This bill says to the people that prisoners are not being mistreated and first legislature of the Hong Kong Special of China, the United States Congress are receiving necessary medical treatment Administrative Region should be determined takes your plight seriously and we are (c) DIALOGUE ON FUTURE OF TIBET.—The by the people of Hong Kong through an elec- Secretary of State, in all official meetings tion law convention, a referendum, or both. willing to provide a tool, a more effi- cient and transparent mechanism to with the Government of the People’s Repub- SEC. 9. SENSE OF THE CONGRESS RELATING TO lic of China, should call on that country to ORGAN HARVESTING AND TRANS- monitor human rights violations. This begin serious discussions with the Dalai PLANTING IN THE PEOPLE’S REPUB- bill is that tool. Lama or his representatives, without pre- LIC OF CHINA. Among other provisions, this bill as- conditions, on the future of Tibet. It is the sense of the Congress that— signs additional diplomats to the Unit- SEC. 4. AUTHORIZATION OF APPROPRIATIONS (1) the Government of the People’s Repub- ed States embassy and consulates, FOR ADDITIONAL PERSONNEL AT lic of China should stop the practice of har- DIPLOMATIC POSTS TO MONITOR vesting and transplanting organs for profit whose sole responsibility will be to HUMAN RIGHTS IN THE PEOPLE’S from prisoners that it executes; monitor human rights violations in REPUBLIC OF CHINA. (2) the Government of the People’s Repub- China. It would also station one Amer- There are authorized to be appropriated to lic of China should be strongly condemned ican human rights monitor in Nepal. support personnel to monitor political re- for such organ harvesting and transplanting It requires State Department offi- pression in the People’s Republic of China in practice; cials to raise human rights concerns in the United States Embassies in Beijing and (3) the President should bar from entry every meeting with Chinese officials. It Kathmandu, as well as the American con- into the United States any and all officials sulates in Guangzhou, Shanghai, Shenyang, authorizes increased funding for the of the Government of the People’s Republic National Endowment for Democracy Chengdu, and Hong Kong, $2,200,000 for fiscal of China known to be directly involved in year 1998 and $2,200,000 for fiscal year 1999. such organ harvesting and transplanting projects in China. SEC. 5. DEMOCRACY BUILDING IN CHINA. practice; This bill requires the State Depart- (a) AUTHORIZATION OF APPROPRIATIONS FOR (4) individuals determined to be participat- ment to establish a prisoner informa- NED.—In addition to such sums as are other- ing in or otherwise facilitating the sale of tion registry for China that will gather November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10065 and provide information on all politi- highest bidder. Perhaps the Chinese re- overall, in 1996, the authorities stepped cal prisoners held in Chinese gulags. gime is looking at this as a new indus- up efforts to cut off expressions of pro- This legislation also supports the try for its economy. test or criticism. continuation of democratic reforms for Furthermore, the regime in China is But all dissent against the party and the people of Hong Kong. intensifying its campaign to system- government was effectively silenced by Last week, while China’s Communist atically erase the culture, population intimidation, exile, the imposition of leader was greeted with pomp and cir- and religion of Tibet. It has arrested prison terms, administrative detention, cumstance, treated more like a movie thousands of Tibetan Buddhist priests or house arrest, and that as a result of star than the leader of a regime which and nuns and has destroyed between those activities, no dissidents were turns its tanks and weapons against its 4,000 to 5,000 monasteries. known to be active at the end of 1996. very own people, thousands of innocent The gentleman from Hawaii [Mr. So for all of those and many other Chinese people were being detained ABERCROMBIE] has added his amend- reasons, it is fitting and appropriate without process, others disappeared, ment to the bill, which helps bring that we in fact provide the resources to and others were executed. human rights in China and Tibet to the create the opportunity to fully monitor As the Chinese President toured var- forefront of any negotiations of our Chinese political repression. ious cities in the United States, as he State Department that we may have spoke at Harvard University, his re- with China by highlighting the plight Mr. Speaker, I yield 41⁄2 minutes to gime continued to severely restrict the of political prisoners and prisoners of the distinguished gentleman from Ha- freedom of speech, freedom of the conscience in that country. waii [Mr. ABERCROMBIE]. press, freedom of assembly, freedom of Religious persecution, as noted by Mr. ABERCROMBIE. Mr. Speaker, religion, privacy, and worker rights. our colleague from Hawaii, extends to the gentlewoman from Florida [Ms. The grim reality of China’s dictator- hundreds of Protestant pastors, of ROS-LEHTINEN]; the gentleman from ship is clearly outlined in the latest Catholic priests who, like Bishop Su New York [Mr. GILMAN]; the gentleman State Department Human Rights Re- who was again arrested on October 8, from New York [Mr. SOLOMON]; also the port on China which states: disappear in the gulag that is China’s gentleman from California [Mr. MAR- The Chinese government continued to com- jails. TINEZ] and the gentleman from Indiana mit widespread and well-documented human We must act, and we must act now. [Mr. HAMILTON], and the gentlewoman rights abuses. Abuses include torture, mis- We cannot sit idly by, hoping that from California [Ms. PELOSI] have led treatment of prisoners, forced confessions, other approaches may take effect and the way on this bill, on these series of arbitrary and lengthy incommunicado deten- lead to a change in China. bills. tion. What about the gross violations that More importantly, our State Depart- I rise in support of H.R. 2358. This bill will take place in the meantime? Can relates to imprisonment, to abuse and ment report underscored that the situ- we ignore those realities? Can we ig- ation is getting worse. human rights violations perpetrated on nore our moral responsibility to the nonviolent political activists in the Overall in 1996, people of China? People’s Republic of China. It goes the report says, The bill before us offers a concrete without saying, Mr. Speaker, that the authorities stepped up efforts to cut off solution, a viable option to begin turn- U.S.-China relations are important, expression of protests or criticism. ing back the tide of abuse and torture and that our government should pursue Our State Department report contin- by the Chinese regime. improved ties with China. It is equally ues: I would especially like to thank the important, however, that the pursuit of All public dissent against the party and architect of this package of China bills, improved relations should not cause us government was effectively silenced by in- the gentleman from California [Mr. to forget the victims of human rights timidation, by exile, by the imposition of COX], whose commitment and dedica- abuses. prison terms, by administrative detention, tion to this effort has helped bring Our concern stems from widely rec- or by house arrest. about this package of China-related ognized standards of international be- The gentleman from California [Mr. bills to the floor today, and of course havior and our core values as a Nation. DREIER] and the gentleman from Illi- to the gentleman from New York [Mr. It is in the context of those values and nois [Mr. PORTER] have incorporated GILMAN], our chairman, for his unwav- standards, standards which the Peo- their amendments in our bill, which ering support and leadership on this ple’s Republic of China has herself for- provide funds to the National Endow- issue. mally subscribed, and I want to empha- ment for Democracy to assist these I urge all of my colleagues to vote in size to the Members, we are not trying human rights groups in China, and it favor of the bill before us, the Political to impose anything on the People’s Re- calls for an annual State Department Freedom in China Act. public of China, other than what the report to the Congress on the progress Mr. Speaker, I reserve the balance of People’s Republic has already signed being made on this critical issue. Their my time. amendment also calls on our State De- Mr. MENENDEZ. Mr. Speaker, I yield up for. partment to take further steps to work myself such time as I may consume. We as Members of Congress call the with human rights groups in that coun- (Mr. MENENDEZ asked and was world’s attention to ongoing human try. given permission to revise and extend rights violations and prisoners of con- Let us not be fooled. A dictator is a his remarks.) science in China and Tibet. One of the dictator is a dictator. The dictator’s Mr. MENENDEZ. Mr. Speaker, I rise most effective means, Mr. Speaker, of thirst for power, for control, knows no in support of the legislation, H.R. 2358, directing attention to the plight of bounds. As a result, a dictator does not a bill that if our colleagues support, such prisoners is to focus on the cir- loosen his hold on the people. A dic- which we believe they will, puts Con- cumstances of individual prisoners. By tator tightens his grip with each chal- gress in concurrence with many of the doing so, we transpose the issue from lenge, regardless of the magnitude or conclusions of the Department of State the realm of abstraction to real-life source. The situation in China is a in its 1996 human rights report with re- men and women whose bodies are sub- good example of this. spect to the People’s Republic of China, jected to torture and neglect, whose Just when one thinks that the atroc- including the fact that China is an au- minds are cruelly punished with tech- ities cannot get any worse, recent news thoritarian State, that the Govern- niques deliberately designed to induce reports indicate that the Chinese re- ment of China has continued to com- confusion, demoralization and despair. gime is preselling the organs of pris- mit widespread and well-documented Time and again, ex-prisoners of re- oners destined for execution. human rights abuses; that abuses in- pressive regimes tell us that the single The gentlewoman from Washington clude torture and mistreatment of pris- most important gift they can receive is [Mrs. SMITH] has incorporated her oners for its confessions and arbitrary the news they are not forgotten by the amendment in our bill, which high- and incommunicado detention, that outside world, that others know of lights the fact that the regime is har- the number of persons detained are be- their suffering and that others are vesting these organs for sale to the lieved to be in the thousands, and that working for their release. H10066 CONGRESSIONAL RECORD — HOUSE November 5, 1997 b 1745 (Mr. GILMAN asked and was given Mr. CARDIN. Mr. Speaker, I thank That is why the Congressional permission to revise and extend his re- the gentleman for yielding time to me. Human Rights Caucus and the Congres- marks.) Mr. Speaker, I rise in support of H.R. sional Working Group on China and the Mr. GILMAN. Mr. Speaker, I thank 2358. Too often our discussions of Chi- emphasis in this bill is urging every the gentlewoman for yielding me the na’s horrendous human rights condi- Member of Congress to adopt a prisoner time. tions are limited to the issue of trade. in China or Tibet, and to publicize his Mr. Speaker, I am pleased to rise in Today we can discuss human rights or her plight, and to demand his or her strong support of H.R. 2358, the Politi- independently, demonstrating its true release. cal Freedom in China Act of 1997. This significance to us in the United States. All of us, Mr. Speaker, can adopt one bill authorizes $2 million for fiscal Perhaps Columbia University Profes- of these prisoners, make that prisoner years 1998 and 1999 to be appropriated sor Andrew Nathan expressed it best our own, so they will not be forgotten. to the State Department to ensure that when he stated, ‘‘Human rights in They will understand that the flicker there are adequate personnel to mon- China are of national interest to the of light of freedom will come from the itor political repression in the People’s United States. Countries that respect floor of this House today and will Republic of China in the United States the rights of their citizens are less shine, and those people will know it. It Embassy in Beijing, as well as the likely to start wars, export drugs, har- will warm their hearts and give them American consulates in Kathmandu, bor terrorists, or produce refugees. The hope for the future. Guangzhou, Shanghai, Shenyang, greater the power of the country with- The self-executing rule for H.R. 2358 Chengdu, and Hong Kong. out human rights, the greater the dan- adds my amendment, which will in- Testimony and reports from both pri- ger to the United States.’’ clude Mr. Ngodrup Phuntsog among vate nongovernmental organizations Mr. Speaker, China’s record on the number of specifically named pris- and the administration clearly stated human rights is deplorable. It is out- oners of conscience. Mr. Phuntsog is a the importance of having more State rageous. In regards to religious groups, Tibetan restaurateur whose crime was Department personnel assigned solely unauthorized religious congregations to provide tea and food to to monitor human rights of the people are forced to register. Their members proindependence demonstrators. For living under the rule of Government of have been beaten and fined. There was this he was sentenced in 1989 on the the People’s Republic of China. recently a raid on the bishop leader of spurious charge of espionage to 11 I want to commend the distinguished a Catholic diocese. That is outrageous. years in prison. chairwoman of our committee’s Sub- We cannot allow that to continue. Mr. Speaker, Mr. Phuntsog was sen- committee on International Economic Freedom of speech is still under siege tenced to 11 years in prison. Think of Policy and Trade, the gentlewoman in China. The Minister of Civil Affairs it. We are gathered together here today from Florida [Ms. ROS-LEHTINEN] for imposed an indefinite and nationwide on this floor, with all the freedoms at introducing this measure. moratorium on new social bodies. The our command, and this gentleman sits The China section of the State De- people of China are being stifled. From in prison for 11 years, and an additional partment Country Reports on Human Tibet to forced abortions, the list goes 4 years deprivation of political rights. Rights Practices for 1996 states that on and on and on. We all know the cir- It is feared that his treatment in overall in 1996, the authorities stepped cumstances within China. Lhasa’s Drapchi Prison is extremely up efforts to cut off expressions of pro- Mr. Speaker, this bill will allow us to harsh. We lack precise information on test or criticism. All public dissent establish the monitoring of political his health and treatment, but reports against the party and Government repression within China. The bill is from our colleague, the gentleman were effectively silenced by intimida- necessary, the bill is right, and I hope from Virginia [Mr. FRANK WOLF] give tion, by exile, the imposition of prison this body will approve this measure by cause for serious concern. terms, by administrative detention, or an overwhelming number. Recently the gentleman from Vir- house arrest. No dissidents were known Mr. Speaker, I yield back the balance ginia [Mr. WOLF] visited Tibet unoffi- to be active at the year’s end. of my time. cially. He found widespread repression, The repression of human rights and Ms. ROS-LEHTINEN. Mr. Speaker, I including credible reports of the mal- the people living under the rule of the yield 2 minutes to our colleague, the treatment of political prisoners, and Government of the People’s Republic of gentleman from California [Mr. my amendment helps direct the spot- China has reached levels not even expe- ROHRABACHER]. light of international attention to the rienced in the former Soviet Union. In Mr. ROHRABACHER. Mr. Speaker, I cell where Ngodrup Phuntsog and oth- illegally occupied Tibet, people are in thank the gentlewoman for yielding me ers are being held under conditions we prison for even listening to Radio Free the time. can only imagine. Asia, to the Voice of America, and for Mr. Speaker, we are at a defining mo- My amendment complements the un- possessing a photograph of His Holi- ment. The Communist Chinese authori- derlying bill by addressing the wider ness, the Dalai Lama. ties and the oppressed people of China issue of human rights in China and Regrettably, current U.S. policy to- and other countries around the world Tibet. It calls for a policy which seeks ward China is held hostage by mostly are watching. They will note what we the immediate and unconditional re- short-term, narrowly defined business are doing here today. lease of all prisoners of conscience in interests. H.R. 2358 attempts to address During the cold war, America made China and Tibet, access to inter- this problem by bringing balance and some strategic alliances with some- national humanitarian organizations logic back into our China policy, by ad- times dictatorial regimes. Perhaps the in prisons in China and Tibet, to ensure dressing the important cornerstone of most blatant of these strategic alli- that the prisoners are not being mal- our American values, the protection ances was that we established a posi- treated or neglected, and the com- and advancement of fundamental tive relationship between the Com- mencement of negotiations between human rights of people around the munist government of China and the the People’s Republic of China and the world. United States of America. Dalai Lama without preconditions on Once human rights and the rule of The cold war is over. If it ever made the future of Tibet. law are addressed, then long-term busi- any sense for us to be locked arm in I urge all my colleagues, Mr. Speak- ness interests can operate in a safe, arm with an oppressive regime, it er, all my colleagues, to vote for the conducive environment, one that bene- makes no sense today. The people, the Nation’s highest ideals, and to send, fits the worker, the student, and busi- free people of the world, the people who above all, a message of hope to pris- nesses. Accordingly, Mr. Speaker, I look to the United States of America, oners of conscience in China and Tibet. urge full support for this legislation. know we mean what we say. Vote for H.R. 2358. Mr. HAMILTON. Mr. Speaker, I yield President Clinton, during the last Ms. ROS-LEHTINEN. Mr. Speaker, I 3 minutes to the distinguished gen- visit of this Communist dictator to our yield 3 minutes to our colleague, the tleman from Maryland [Mr. CARDIN]. country just a few weeks ago, had some gentleman from New York [Mr. GIL- (Mr. CARDIN asked and was given words to say. Unless we put muscle be- MAN], the esteemed chairman of the permission to revise and extend his re- hind those words, it will have the oppo- Committee on International Relations. marks.) site impact than what the American November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10067 people think. It will actually demor- where a press reporter asked, how do Mr. ABERCROMBIE and Mr. GILMAN are to be alize those people who believe in free- you both see what happened in commended for bringing the subject of China's dom overseas, and it will create Tiananmen Square? Jiang Zemin said, humiliating policies in Tibet to the fore with strength among the Communist dic- in effect, that this threatened their na- their amendments. tators to hold power, if they think tional security and their actions were, And LINDA SMITH'S amendment condemning those words about human rights were therefore, legitimate. China's practice of harvesting organs from nothing more than word confetti for President Clinton, standing right prisoners sheds light on yet another example the American people. next to him, said he strongly disagreed of the odious nature of this regime. No, today the U.S. Congress is going with what took place in Tiananmen This bill deserves unanimous support. to act. This piece of legislation is the Square, that they had very different Ms. ROS-LEHTINEN. Mr. Speaker, I first of many that will prove to the views on human rights, and that they yield 4 minutes to our colleague, the world that America still is the beacon should continue a constructive engage- gentlewoman from Washington [Mrs. of hope and justice for all the oppressed ment, but we should continue to see LINDA SMITH], who is the author of the people of the world. When it comes big, big changes in human rights, in amendment in our bill against the har- down to the bottom line, the American nuclear nonproliferation policy, in vesting and selling of organs of politi- people are serious when we talk about trade areas, in political repression; in cal prisoners in China. freedom and justice, and that those us now allowing three people to be sent Mrs. LINDA SMITH of Washington. people around the world who believe in to China now, three of our religious Mr. Speaker, I rise today in support of freedom and justice, they will be our leaders, to help try to open up China, this bill, called the Political Freedom friends. We are on their side, and not and also, Bishop Su, a Catholic, was re- in China Act of 1997, but I would espe- the side of the oppressor. cently released from imprisonment in cially like to commend its author. This Mr. Speaker, there is a relationship China; small steps, not enough. This is not a fun thing to talk about, but between peace, prosperity, and liberty. amendment by the gentlewoman will she has worked very hard to bring it to Let us stand for liberty today, and we certainly help. I strongly support it. the floor today. will have peace and we will have pros- Ms. ROS-LEHTINEN. Mr. Speaker, I b 1800 perity in the long run. If we do not, it yield such time as he may consume to will hurt America. the gentleman from New York [Mr. Mr. Speaker, included in the Politi- Mr. HAMILTON. Mr. Speaker, I yield SOLOMON]. cal Freedom in China Act is a provision 3 minutes to the distinguished gen- (Mr. SOLOMON asked and was given from several of us in the House. It is tleman from Indiana [Mr. ROEMER]. permission to revise and extend his re- House Concurrent Resolution 180, Mr. ROEMER. Mr. Speaker, I thank marks.) which was originally introduced by the the distinguished ranking member and Mr. SOLOMON. Mr. Speaker, let me gentlewoman from California [Ms. my good friend, the gentleman from In- just rise in strong support of this great PELOSI], the gentleman from New York diana [Mr. HAMILTON], for yielding me legislation, and commend the gentle- [Mr. GILMAN], the gentleman from New the time. woman from Florida, [Ms. ILEANA ROS- York [Mr. SOLOMON], the gentleman Mr. Speaker, I rise in strong support LEHTINEN], for sponsoring this bill, and from Illinois [Mr. HYDE], the gen- of the President’s policy of construc- for her steadfast support of freedom tleman from New Jersey [Mr. SMITH], tive engagement, I rise in strong sup- around this world, and especially in the gentleman from Virginia [Mr. port of MFN for China, and I rise in China. WOLF], and the gentleman from Cali- very strong support of continuing to Mr. Speaker, as I alluded to in my remarks fornia [Mr. COX], chair of the Repub- have a pillar of our foreign policy be on the rule, this bill is really the least we can lican Policy Committee, as well as [Mr. constructed on human rights. do to fight inhumane repression in Communist WELDON], the gentleman from Kansas I therefore endorse the amendment China. [Mr. TIAHRT], and the gentleman from offered by the gentlewoman from Flor- By increasing funding the number of State Connecticut [Mr. GEJDENSON]. ida [Ms. ROS-LEHTINEN], which will au- Department human rights monitors in and This language expresses the sense of thorize $2.2 million for each of the next around China, we will be much more able to Congress that the Chinese Government 2 years to help monitor political re- get a true picture of what is happening in that should be condemned for its practice of pression in China, and show to Ameri- vast country. executing prisoners and selling their cans, to the Chinese, and the people And we already know some of that. organs for transplant. It also says that around the world that we are indeed We know that hardly a day goes by without any Chinese official directly involved devoted and dedicated to human rights reading of yet another act of aggression, an- in these executions and operations practices being greatly improved in other act of duplicity, or another affront to hu- should be barred from entering the China. manity committed by the dictatorship in United States ever. I do want to say that there are some Beijing. Finally, it calls upon U.S. officials to concerns that I have with some parts of Consider human rights: The same people prosecute those who are illegally mar- the underlying language in this bill. who conducted the massacre in Tiananman keting and selling these organs in the For instance, the amendment would ex- Square, and the inhumane oppression of United States. Wealthy Americans are tend the time for congressional consid- Tibet, have been busily eradicating the last reported to be paying $30,000 and then eration of the President’s certifi- remnants of the democracy movement in travel to China, where they receive the cations from 30 days to 120 days of con- China. kidney of an executed prisoner at a tinuous session. According to the U.S. State Department's special hospital operated by the Peo- That 120 days of continuous session annual human rights report, and I quote: ple’s Liberation Army. may, in fact, make it very difficult, ac- ``Overall in 1996, the authorities stepped up Mr. Speaker, while reports of pris- cording to the administration and the efforts to cut off expressions of protest or criti- oners being executed have gone on, President’s State Department, for us to cism. All public dissent against the party and these reports, for several years, it was then engage with the Chinese in these government was effectively silenced by intimi- not until just a month ago that there congressional considerations of the dation, exile, the imposition of prison terms, was a broadcast by ‘‘Primetime Live,’’ President’s recommendations on nu- administrative detention, or house arrest.'' an ABC program, that brought the clear nonproliferation and business ar- I emphasize the words ``stepped up,'' Mr. issue into focus. rangements in China. Speaker. Human rights in China are getting I am going to submit for the RECORD But I do want to say my strong sup- worse. a copy of the transcript. This will show port for the gentlewoman’s underlying China has also ramped up its already se- what we saw on the program, and I amendments, her commitment to vere suppression of religious activity. would like it to be a part of the CON- human rights, the United States’ com- That is why we need this bill, Mr. Speaker. GRESSIONAL RECORD. mitment to human rights. Mr. Speaker, I am glad that we were able in It showed the People’s Liberation We come to the exchange that the the Rules Committee to self execute some ex- Army preparing in hospitals for the President had with Jiang Zemin right cellent amendments to this bill by members of prisoners. It showed the prisoners down the street at the White House, both parties. being executed as guards and soldiers H10068 CONGRESSIONAL RECORD — HOUSE November 5, 1997 repositioned the guns at the base of We had an opportunity to make it not make a special dispensation for their neck to be assured that when perfectly clear that while we put great this country because of the fact that they were executed there were no or- importance on having a cordial and we think there are 2 billion eyes to gans destroyed. Then it showed the productive relationship with the people watch American movies or 1 billion interview of several people who had re- of China, we will never forget that our mouths to drink American soft drinks. ceived or been a part of the operations Nation’s bedrock principles are not rel- When democracy comes to China, let or the sale of the organs in the United ative. The freedoms that Thomas Jef- the record show that America firmly States. We have received a letter from ferson wrote of over 200 years ago are and constantly stood and argued for the head of the FBI, Director Louis universal and timeless. They are abso- the cause of human rights and freedom. Freeh of the FBI, stating that he is lute. If Albert Einstein were here When the day of reckoning comes, fully committed to aggressively inves- today, a man who fled Nazi tyranny to when freedom rings out throughout tigate this, and for this we commend America, I know that he would say that great land, let people say, Amer- him. that those laws of freedom are as abso- ica stood for the cause of right; Ameri- But this act fits very well together lute as any theory of physics. cans did not let their economic self-in- because it says that we are going to We should not have to trade away our terest blind them in our cause. spend money on China. We are going to conscience with our commerce. We I urge Members to join with me in spend $2.2 million for the next 2 years must pursue a policy of active engage- voting for this bill to honor the Jeffer- so the State Department can look into ment on a whole range of issues, not sonian legacy and all those who sac- these issues. Right now the Chinese downplay our differences. rificed their lives for it, to refute the Government denies it in spite of the I think the President of China was belief of the Chinese Government that facts. But this bill will carry people very happy with his reception in this we are not serious about human rights, into China and require that light be country. From his perspective, the trip and to make sure that Wei and others shined on this atrocious practice. was a total success. He was able to put do not stand alone, that every person Mr. HAMILTON. Mr. Speaker, I yield on a tricornered hat in Williamsburg, in the United States stands beside 3 minutes to the gentleman from Mis- the State where Jefferson formulated them every day. souri [Mr. GEPHARDT], the distin- his vision of human rights, without Ms. ROS-LEHTINEN. Mr. Speaker, I guished minority leader. facing any strong challenge to the un- yield 2 minutes to the gentleman from (Mr. GEPHARDT asked and was democratic and brutal rule of the Chi- Arizona [Mr. SALMON]. given permission to revise and extend nese Communist government. He was Mr. SALMON. Mr. Speaker, I think his remarks.) able to put forth his preposterous the- the American people have been treated Mr. GEPHARDT. Mr. Speaker, I rise ory about the relativity of human to a really special opportunity today today to speak about an issue of val- rights and call the issue of Tibet an in- because we have been able to see Mem- ues, an issue where there is a clear dis- ternal matter. bers from virtually across the political tinction between right and wrong and Well, we should not be happy with spectrum in this place come together where we can stand on the right side of the fact that he is happy over his trip on such a crucial issue, to express care history. The United States serves as the bea- to the United States, and neither and concern about one of the most fun- con of liberty in our world. We are a should any American who believes that damental rights that we hold, and that nation founded on ideals, the idea that our bedrock ideals are absolute, eter- is the ability to worship according to every person, from whatever racial or nal, and paramount to issues of com- the dictates of your conscience and to ethnic or religion or belief, is endowed merce. speak out according to your beliefs. I by God with inalienable rights, the Human rights is at the core of our am really pleased to be here today to right of life, the right of liberty. We bedrock ideals. That is why I am support this piece of legislation. must never forget this. speaking about this bill. Human rights The 21-gun salute is over. The state Americans have shed blood on five is just one of many issues that we need dinner is over. The press events at continents in support of these ideas. to debate and deal with concerning our Independence Hall in Colonial Wil- Americans have expended extensive re- relationship with China. The list is liamsburg are over. China wanted to sources in support of these ideas. These long: Weapons proliferation, forced achieve a new image in the West as a are not ideas that Americans take abortion, religious persecution, organ result of this summit, but Americans lightly or ideas that we can just dis- transplants, democracy in Hong Kong, had a different plan in mind. Through card. These ideas are powerful enough Tibet, trade, and others. The bill is just their protests, they sent a different to cause people to risk their lives and one step down a very long road that we message to the Chinese leadership. have caused people to give up their must take if we want to get to the It reminds me of the message that lives. point where the United States and President Reagan delivered to Mikhael It has become fashionable to keep the China have truly normal relations. Gorbachev in Geneva in 1958. Natan Declaration of Independence folded up I urge all of my colleagues to cast a Sharansky tells the story in his won- inside our suit pockets for use on cer- proud vote for H.R. 2358, to authorize derful book ‘‘Fear No Evil.’’ He says tain occasions, Fourth of July parades, additional funding for human rights Reagan told Gorbachev that the Soviet Bicentennial celebration, political monitoring in China. Wei Jingsheng, Union would not change its image in campaigns. It is not something to keep one of the most prominent imprisoned the world until he let Sharansky go. folded up or hidden away. It is some- Chinese dissidents, has had his writings So it is with China. The photos at the thing to wear on our sleeves, to re- from prison published in a book enti- White House or at Harvard will not member and to rededicate ourselves to. tled ‘‘The Courage to Stand Alone.’’ He give China the respect and the super- It is not for rhetorical flourishes and has been in prison for the crime of ad- power status that they seek. Rather, empty celebration but for inspiration vocating human rights and democracy freeing Chinese political prisoners, for our actions and our deeds. in China, nothing more radical or out- freeing Wei Jingsheng and Wang Dan, We must not be willing to keep the landish than that. Listen to what he freeing other Chinese who are in prison ideas in that sacred text folded up and has to say about human rights. merely for voicing their opinions or in a drawer in order to not offend our He said: Human rights themselves worshiping their God, in sum, only by important foreign visitor from the Re- have objective standards which cannot ending the laogai can the Chinese lead- public of China. be subjected to legislation and cannot ership achieve world respect, status, The proper time to be talking about be changed by the will of the Govern- and, one day, admiration. Until then, this subject would have been 2 weeks ment. He said: They are common objec- we stand not with the Government of ago before President Jiang Zemin left tive standards which apply to all gov- China but we stand with the people of our country. We should have spoken ernments and all individuals, and no China. out on this floor prior to the Presi- one is entitled to special standards. I yield to the gentleman from Cali- dent’s visit, at a time when 1 billion Let us today hold the Chinese Gov- fornia (Mr. Dreier). people on the other side of the world ernment to the same standards we hold Mr. DREIER. Mr. Speaker, I would were craning their necks to listen. every country in the world to. Let us like to congratulate my friend, the November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10069 gentleman from Arizona [Mr. SALMON], And they toasted at a dinner, they the Clinton administration’s report, for his leadership of one of the most toasted the man who controls the tor- which has been cited several times on brilliant parts of this measure, taking ture of Wei Jingsheng and many other the floor during this debate, that ex- the Helsinki concept, the CSCE con- political prisoners of conscience and actly the opposite is true. cept on human rights, and applying religious prisoners, as well. Not only has the human rights situa- that here. And working with my friend, When President Jiang was here, some tion not been improving as a result of the gentleman from Illinois [Mr. POR- of us had the opportunity to meet with or in connection with or coincidence TER], and others, we have gone a long him. And in that meeting, he denied with our policy of engagement, it has way in this measure. that there was any political repression been getting worse. Quoting, from the The NED provisions which my friend in China, that there was not any har- Clinton State Department’s report, from Florida mentioned are important, vesting of organs for profit, it was just ‘‘The authorities stepped up efforts to and getting the business community a rumor, when that is well docu- cut off expressions of protest or criti- focused on business, and getting our mented, that there is religious freedom cism. All public dissent against the Government to focus on this human clearly blossoming in China. And I pre- party,’’ that is the Communist Party, rights issue is very, very helpful. I sented him something that I will refer the only party permitted in the Peo- would like to congratulate my friend. to later, the religious freedom legisla- ple’s Republic of China, ‘‘and the Gov- Mr. HAMILTON. Mr. Speaker, I yield tion, a letter from Ignatius Cardinal ernment was effectively silenced.’’ 3 minutes and 30 seconds to the gentle- Kung asking him to free the Catholic We are discussing this legislation and woman from California [Ms. PELOSI]. bishops who have been sent to prison or the need for it immediately in the Ms. PELOSI. Mr. Speaker, I want to to labor camps. He denied categorically wake of President Jiang’s visit. And it congratulate all of the Members who that China had every proliferated is fair to ask whether anything hap- came together to find our common weapons of mass destruction. pened at the summit that militates ground to speak out for promoting While President Jiang was in the now against this initiative or whether human rights and freedom in China and state of denial and calling all of this this initiative will jeopardize any of Tibet. I particularly want to commend just rumor, political prisoners were the summit’s accomplishments. That the gentlewoman from Florida [Ms. suffering in China. We must monitor requires us to pierce the fog of the ROS-LEHTINEN] for her initiative in pre- that. While he was denying that this summit’s atmospherics and realisti- senting this very important legislation was taking place, prisoners of con- cally assess its concrete results. that we have before us which would science were suffering in China. We In this respect, the remarks of my provide funding to increase the mon- want the message to go out to them colleagues who spoke immediately itors to monitor human rights viola- that their suffering and their courage prior to me make it very, very clear tions in China. and their determination to promote a that, yes, President Jiang, just as con- Mr. Speaker, those who oppose some freer China is shared by Americans who ventional wisdom holds, had a success- of the efforts that we have been put- promote Democratic values throughout ful summit. He stuck to his agenda. He ting forth to promote human rights in the world. And this additional funding got his way. But the people of China, China have said that our efforts will for monitoring will help to document, particularly the political prisoners of isolate China, that we want to isolate so that the American people will know China, particularly those few whose China. Nothing could be further from and that we can say to the president human rights cases have been so visi- the truth. when he denies it is happening, Presi- bly raised and so consistently raised by I have the privilege of representing dent Jiang, who denies it happens, we the United States that we expected San Francisco. A large number of peo- know and the prisoners know that we perhaps in the glow of the summit they ple in my district are Chinese Ameri- care about them. might win their release, got precisely cans. They are just like the rest of I urge my colleagues to support this nothing. For Wang Dan, for Wei Americans, they are not a monolith. legislation. Jingsheng, this was not a successful They all do not agree on the tactics of Ms. ROS-LEHTINEN. Mr. Speaker, I summit at all. using MFN, but they all agree that a yield 41⁄2 minutes to the gentleman Wei Jingsheng, whom some have freer China will make the world safer, from California [Mr. COX], who is the called the father of Chinese democracy, and that is something that we all must architect of the package of bills before was once, just like solidarity leader work and strive for. us today and tomorrow stating the pol- Lech Walesa, an electrician. But this That is why I was so very dis- icy of the United States Congress re- son of a Communist Party official has appointed last week when, in prepara- garding China’s abuses. spent most of his adult life in Com- tion for Jiang Zemin’s visit, President Mr. COX of California. Mr. Speaker, I munist Chinese prisons and reeduca- Clinton, in his speech laying out his thank the gentlewoman from Florida tion camps. plan for U.S.-China relations, put forth [Ms. ROS-LEHTINEN], author of the bill, In 1978, Wei posted his essays on free- six areas of profound interest between for yielding me time. dom, his writings on freedom, written our two countries: the environment, It has been a pleasure to work with in large characters, on a stretch of ma- trade, fighting narcotics, et cetera. But my colleagues in the majority and mi- sonry that became known as Democ- he did not include promoting a freer nority parties on such an important racy Wall. And in return, the Com- China or human rights in China or pro- measure that is not just a sense of the munist government sentenced him to moting democratic freedoms as one of Congress resolution, that does not just 14 years in some of Communist China’s those areas of profound interest. express outrage, it is not just a cry of worst prisons. Just 6 months before his I think the last week has dem- pain, but rather, that does something, final year in confinement, he was brief- onstrated, with the protests, et cetera, something within our control. We can, ly released on the eve of the Inter- that although that might not have and we will as a result of this legisla- national Olympic Committee’s decid- been a priority in the President’s tion, keep track of what is going on in ing whether to let Beijing host the speech, it is a priority for the Amer- the People’s Republic of China as never year 2000 Olympics. When the People’s ican people. And the Ros-Lehtinen leg- before. Republic of China lost its Olympic bid, islation today will help us promote As my colleague the gentlewoman Wei was immediately arrested again. human rights in China. from California [Ms. PELOSI] has just For nearly 2 years after that, he was pointed out, when President Jiang vis- held in secret detention without any b 1815 ited with us and when we breakfasted specific charges. And finally, in 1996, The administration, instead, chose to here with him in the Capitol, he simply Wei Jingsheng was given a show trial roll out the red carpet to the head of denied that there were human rights on shamelessly straightforward the regime that rolled out the tanks in problems in the People’s Republic of charges of writing in behalf of democ- Tiananmen Square. They gave a 21-gun China. He told a nationwide TV audi- racy. The Communist authorities kept salute to the leader of the military ence, ‘‘China does not feel that it has the trial closed to the public and the that proliferates weapons of mass de- done anything wrong in the field of press and even denied him the legal struction and brutally occupies Tibet. human rights.’’ And yet, we know from counsel offered by two United States H10070 CONGRESSIONAL RECORD — HOUSE November 5, 1997

Attorneys General, one a Democrat, gardless of whether we are conserv- Florida [Ms. ROS-LEHTINEN] in this for- Nicholas Katzenbach and the other a atives or liberals. ward-thinking legislation, which is the Republican, Richard Thornburgh. Mr. HASTINGS of Florida. Mr. most important human rights issue Today, Wei Jingsheng is 46-years-old. Speaker, I yield myself such time as I that we will face in the 105th Congress. He suffers from heart disease and ar- may consume. This is a bipartisan piece of legislation thritis at this early age, he is my age, As one who has visited China three that should enjoy support of both sides that caused him debilitating back pain. times this year, I join my colleagues in of the aisle. The last time his family saw him, he allowing that this is an appropriate I would also ask my colleagues to was unable to keep his head upright. measure for us to undertake. Because, join me in signing a letter to the Chi- As part of a campaign to break his clearly, there are matters ongoing that nese Ambassador asking him to take spirit, the Communist authorities have are vitally in need of our continuous swift action against this practice of cut off the heat to his solitary confine- observation, our continuous analysis, harvesting organs from prisoners. ment cell in winter, kept him under our continuing observation from the Mr. HASTINGS of Florida. Mr. lights to deny him sleep, and refused standpoint of what is necessary for us Speaker, I yield 3 minutes to the dis- him medical attention. as legislators to undertake, and also to tinguished gentleman from Illinois This is the kind of abuse that we are be able to assist in allowing that the [Mr. PORTER]. after in this legislation. This is the State Department, through its actions, Mr. PORTER. Mr. Speaker, I thank reason that the Ros-Lehtinen bill is so are able to undertake those things that the gentleman from Florida [Mr. HAST- important and the reason I am so are necessary to analyze the human INGS] for so kindly yielding me the proud to join with my colleagues, Re- rights violations and report them to us time. publican and Democrat, in support of so that we may take appropriate ac- Let me thank the gentlewoman from this legislation. tion. Florida [Ms. ROS-LEHTINEN], the gen- Mr. HASTINGS of Florida. Mr. In that sense, Mr. Speaker, I stand tleman from New York [Mr. SOLOMON], Speaker, we continue to reserve our along with our colleagues who have of- the gentleman from California [Mr. time in light of the fact that there may fered this measure in strong support of DRIER], and so many of my colleagues, be additional speakers. Perhaps the saying in the great hopes that it will including the gentleman from Arizona gentlewoman from Florida [Ms. ROS- bring us to a point whereby we may be [Mr. KOLBE], the gentleman from Ari- LEHTINEN] will continue to yield time. in a better position when we are speak- zona [Mr. SALMON], the gentleman from Ms. ROS-LEHTINEN. Mr. Speaker, I ing with reference to United States- California [Mr. MATSUI], the gentleman yield 11⁄2 minutes to our colleague the China relations. from New Jersey [Mr. SMITH), and the gentleman from Florida [Mr. Mr. Speaker, I continue to reserve gentleman from New York [Mr. GIL- SCARBOROUGH]. the balance of my time. MAN], all who have participated in cre- Mr. SCARBOROUGH. Mr. Speaker, I Ms. ROS-LEHTINEN. Mr. Speaker, I ating some of the concepts that have thank the gentlewoman from Florida yield 11⁄2 minutes to our colleague, the been embodied in this legislation. [Ms. ROS-LEHTINEN] for yielding me the gentleman from Pennsylvania [Mr. We began meeting earlier this year, time and also for addressing such an FOX]. convinced that the annual debate on important issue as human rights in Mr. FOX of Pennsylvania. Mr. Speak- MFN had ceased to provide any posi- China. er, I rise in support of H.R. 2358, to pro- tive results in terms of China policy I heard the gentleman from Califor- vide for improved monitoring of human and desiring to fashion a package of nia [Mr. COX] talk about Wei being sent rights violations in the People’s Repub- tools that were better equipped to ad- to jail and brutally tortured for writ- lic of China. I compliment my col- dress specific problems that we saw in ing on behalf of democracy. This past league from Florida [Ms. ROS- U.S. policy toward China and better week, I had the thrill of meeting Harry LEHTINEN] for her leadership in this geared toward promoting the values Wu, one of the great figures, along with issue. that we hoped to see take root in that Wei, fighting for democracy in the lat- I especially support that amendment country. These ideas have been mostly ter half of the 20th century. He charac- that calls on the People’s Republic of incorporated in this legislation and I terized today’s so-called engagement China to stop harvesting and trans- think will go a long way toward get- policy as basically no different from planting organs from prisoners. The ting a true engagement with China, not the appeasement policy in Munich. organ harvesting program in China has just a debate within the Congress, but We are feeding a communist giant. When meant millions of dollars to the Chi- a true engagement that has the poten- you are talking about a communist giant, nese military. The Chinese Govern- tial of truly changing Chinese society. you have to know that this is a military ment says organ harvesting involves It represents a great step forward in giant. Forty-seven years ago we had a de- criminals who voluntarily consent. The bate, who lost China? Pretty soon we will changing the nature of congressional have another debate, who rebuilt communist facts show otherwise. China’s assertion discussion of U.S.-China policy. It China? that these are the facts makes a mock- makes efforts that mark a new and We have got to step forward with the ery of the international principles more mature debate on the important moral courage and recognize once and adopted after Nazi medical experi- policy and the impact of our relations for all that the greatest exports that ments were uncovered and outlawed. with China. I have been and continue No other country in the world at this will ever come from the United States to be an outspoken critic of those Chi- time is known to use the organs of of America are not military hardware nese government policies and actions or nuclear technology, but are the prisoners except for China and to take which constrain the people of China or ideals of freedom, Jeffersonian democ- them in an involuntary fashion. They threaten U.S. interests. racy and the things that have made appear to have turned a chilling execu- An abysmal human rights record, a America great for over 200 years. tion of thousands of people who did not belligerent attitude toward neighbor- I hope today is a starting point where even commit capital crimes into a mul- ing countries, a penchant for disregard- Republicans and Democrats, conserv- timillion dollar black market of a kind ing obligations under domestic and atives and liberals, can come together the world has never seen. international law, a widespread and en- on this most vital issue of human Accordingly, others have joined me demic system of corruption and crony- rights in China and across the globe. in Congress to write to President Clin- ism, a willingness to arm rogue re- We have a great opportunity. ton and Secretary of State Albright gimes with weapons of mass destruc- A.M. Rosenthal, writing in the New noting that 4,000 people a year who are tion, these are the characteristics of York Times, said, reportedly executed in China for com- the Chinese regime that disturb and After World War II, much of the Western mitting minor crimes and they go from alarm the Congress and the American left edged off from the fight for human rights arrest to execution in order to harvest people. in communist countries. Conservatives their organs for sale on the black mar- b looked away almost everywhere else. The ket. This is not justice. This is murder 1830 losers were the people in the cells. for profit. As I said before and set out with my I hope that both sides can understand I hope my colleagues would join me colleagues to do with H.R. 2195, Con- that we need to fight for freedom re- in supporting the gentlewoman from gress must address these issues with November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10071 ideas and options which look to the izing side the State Department budg- going on. One or two people designated specific problem and seek an appro- et, we see that the Bureau of Democ- in Beijing or Shanghai or elsewhere is priate solution. Efforts to withdraw racy, Human Rights and Labor has 52 not adequate to the test. MFN trading status from China do not employees and a budget of just over $6 Let me also say I am very appre- meet these goals. It is a blunt instru- million. By way of contrast, the Public ciative to the gentlewoman from Wash- ment that is not directly related to the Affairs Office is about twice as large, ington, Mrs. LINDA SMITH, for her lan- problems we seek to address, and most with 115 employees and a budget of guage that she has added to this bill significantly, with the Senate and the over $10 million. Even the Protocol Of- with regard to the organs that are used President opposed, MFN would never fice has 62 employees, 10 more employ- from executed prisoners. Let me just be withdrawn in any event, and MFN ees than the whole Human Rights Bu- say we have had two hearings on that withdrawal is therefore what I consider reau. Each of the six regional bureaus in my subcommittee. It is a horrific re- to be a dead-end policy option which has an average of 1,500 employees. ality. We need to rein in on it, and we will never actually effect change in These are the bureaus the Human need, I think, do everything possible to Chinese society. Rights Bureau sometimes has to con- shut down that gruesome process. The package of bills before Congress tend with in ensuring that human Mr. HAMILTON. Mr. Speaker, I yield tonight has the potential to do so and rights is accorded its rightful priority myself 1 minute. I believe should be commended to against competing concerns, and they Mr. Speaker, this bill authorizes $2.2 every Member. I believe that the com- have a combined budget of about $1 bil- million for each of the next 2 years to mittee of jurisdiction, International lion, or about 160 times the budget of support U.S. Embassy and consulate Affairs, has done an excellent job in the Human Rights Bureau. personnel to monitor political repres- fashioning this package. I commend This gross disparity in resource allo- sion in China. I think it is a construc- this effort and everyone who has been cation is not only a poignant symbol of tive bill. This is one of the bills in this involved in it. I am proud to stand on the imbalance in our foreign policy pri- package of nine that I will support. I the floor of the House today and send a ority, it is also an important practical think it sends the Chinese a signal that strong message that Congress cares consequence. It has practical con- we care very deeply about human about American values and about pro- sequences. For instance, Washington rights, that human rights will be a moting those values abroad. officials from the regional bureaus de- major component in our relationship By increasing funding for democracy activi- velop their expertise by taking fre- with China. ties, expanding monitoring of human rights quent trips to the regions in which I will tell my colleagues that the ad- abuses, intensifying efforts to broadcast infor- they specialize. Officials in the Human ministration has some reservations mation into China, denying visas to Chinese Rights Bureau, however, below the about this bill. They consider it dupli- who flaunt international law or American val- rank of Deputy Assistant Secretary al- cative and unnecessary, but I do think ues, expressing our support for the free and most never have the budgets for such it is a constructive, positive bill. I democratic government of Taiwan, promoting trips. commend the gentlewoman from Flor- contact between agents of change in Chinese It is an unfortunate fact of life that ida for sponsoring it and pushing it for- society and their American counterparts, and we usually get what we pay for, and it ward and for others who have spoken in expecting United States businesses in China appears that the American taxpayers support of it. I intend to vote for this to be a force for positive change, we are di- are paying for more State Department bill. I urge my colleagues to do the rectly addressing these problems with pro-ac- protocol and public relations and less same. tive solutions. We are taking concrete steps to for human rights. By adding $2.2 mil- Mr. Speaker, I yield back the balance promote American values that have a proven lion in each of the next 2 fiscal years of my time. track record of successÐdemocratic self-gov- for monitoring human rights in the Ms. ROS-LEHTINEN. Mr. Speaker, I ernance, rule by laws created with the consent People’s Republic of China, this bill yield 1 minute to the gentleman from and active participation of the people, freedom will help to redress the terrible imbal- California [Mr. HUNTER]. and individual liberties. ance in the current State Department Mr. HUNTER. Mr. Speaker, I thank Today, we will begin in a new debate on budget. the gentlewoman for yielding me this China. I am hopeful that it will yield positive Let me also point out, and I appre- time and for her leadership and all my results on all sides. I urge all of my colleagues ciate the earlier comments of the dis- colleagues who have worked so hard to to support H.R. 2358 and the rest of this legis- tinguished gentleman from Missouri see that we not only export goods from lative package. [Mr. GEPHARDT], the minority leader, this country, but that we export good- While it is not perfect it is an important step when he quoted from Wei Jingsheng, ness and morality. De Tocqueville said and one that we must take if we hope to wel- that great human rights champion in America is great because America is come the day that China becomes part of the the People’s Republic of China, who good. community of peaceful, democratic, law-abid- today is languishing in a gulag in Somewhere in China, there are people ing nations. That is a day all AmericansÐand Laogai because of his strong beliefs. I just like the person that the gentleman I suspect, most ChineseÐlook forward to. met with Wei when he was let out to from New Jersey [Mr. SMITH] just de- Ms. ROS-LEHTINEN. Mr. Speaker, I try to procure the Olympics 2000 for scribed who are in cramped prison yield 3 minutes to the gentleman from the Chinese dictatorship. They thought quarters, some of whom have been tor- New Jersey [Mr. SMITH], who has been that symbolic gesture would garner tured, some of whom are right now un- the leader on the Subcommittee on that for them. He was only out for a dergoing physical pain. The adminis- International Operations and Human couple of weeks, several weeks. I met tration said we should engage with Rights, talking about the many abuses with him, talked to him for about 3 China to see to it that we move China of the Chinese regime, especially in re- hours. Two weeks later or so he met from this repressive situation to one in lation to Chinese slave products. with Assistant Secretary of State for which people are allowed to dissent Mr. SMITH of New Jersey. Mr. Human Rights and Democracy John without being incarcerated, without Speaker, I thank the gentlewoman for Shattuck. The next day after meeting being hurt, without being subdued by yielding me this time. I want to con- with the point person for the Clinton the military force. gratulate the distinguished gentle- administration on human rights, Wei This is engagement. It is not right to woman for this legislation and her Jingsheng was grabbed off the streets ask a businessman who is about ready strong human rights leadership in this and thrown into prison, and he is there to close a business deal at the same House. now, unfortunately suffering. We know time to bring up the problem that a H.R. 2358, Mr. Speaker, addresses the that he has been beaten. At one point dissident has in a particular prison. He important question as to whether the he was beaten so bad he could not even is not going to do that. He needs to cornerstone of our foreign policy raise his head, and his sister and others close a deal, he needs to get the check, should be the promotion of universally who care deeply for him fear for his he needs to get the money. It is impor- recognized human rights. Looking at life. tant to have personnel who are as- the State Department budget, and my We need greater monitoring. We need signed to this monitoring task solely, subcommittee oversees on the author- more surveillance to know what is who can really focus and really specify. H10072 CONGRESSIONAL RECORD — HOUSE November 5, 1997 This is an excellent bill. I support it and to establish a Prisoner Information Reg- national Relations and, in the Senate, to the fully. istry for China. Committee on Foreign Relations. Ms. ROS-LEHTINEN. Mr. Speaker, I It supports the continuation of democratic It shall be in order to amend such joint reso- yield myself the balance of my time. freedoms for the people of Hong Kong. lutions in the committees to which they are The SPEAKER pro tempore (Mr. In essence, H.R. 2358 is a comprehensive referred. HASTINGS of Washington). The gentle- ‘‘(2) FLOOR CONSIDERATIONS.—(A) The provi- bill which includes the contributions of several sions of section 152(d) and (e) of the Trade woman from Florida [Ms. ROS- of my distinguished colleagues. I thank them Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating LEHTINEN] is recognized for 1 minute. for their commitment and dedication to the to the floor consideration of certain resolu- Ms. ROS-LEHTINEN. Mr. Speaker, issue of human rights in China, and for their tions in the House and Senate) apply to joint this bill does more than send a message ongoing courage to stand up for what is right. resolutions described in subsection (b). to the repressive Chinese regime. It As you cast your vote, I want you to think ‘‘(B) It is not in order for— puts respect for human rights at the of the people of China; think about the political ‘‘(i) the House of Representatives to con- forefront of our discussions with Chi- prisoners and the persecuted. sider any joint resolution described in sub- nese officials. It forces our own Gov- section (b) that has not been reported by the I want you to think about the values that Committee on International Relations; and ernment to recognize that these values have made this country greatÐabout the ‘‘(ii) the Senate to consider any joint reso- that we hold so dear and which have sense of humanity that has guided us through lution described in subsection (b) that has helped in forging our democracy, which the history of the Republic. The United States not been reported by the Committee on For- are free speech, freedom to worship, has a responsibility as the post-cold war lead- eign Relations. freedom of assembly, those values will er to set the example for others to follow. ‘‘(c) CONSIDERATION OF SECOND RESOLUTION be part, an important part, an essential We can set a positive example right now. I NOT IN ORDER.—It shall not be in order in ei- part of our foreign policy. ther the House of Representatives or the urge you to support H.R. 2358. Senate to consider a joint resolution de- We cannot continue to sweep these The SPEAKER pro tempore. All time issues of the violations of human rights scribed in subsection (b) (other than a joint for general debate has expired. resolution described in subsection (b) re- aside merely because they are uncom- It is now in order to consider the fur- ceived from the other House), if that House fortable for us to discuss with the Chi- ther amendment specified in part 1–B has previously adopted such a joint resolu- nese. If we ignore these violations, the of House Report 105–379. tion. political dissidents, the opposition in AMENDMENT OFFERED BY MR. GILMAN ‘‘(d) PROCEDURES RELATING TO CONFERENCE China, will suffer even more oppres- Mr. GILMAN. Mr. Speaker, I offer an REPORTS IN THE SENATE.— ‘‘(1) CONSIDERATION.—Consideration in the sion. Let us be their voice today. Let amendment. us celebrate democracy, human rights Senate of the conference report on any joint The SPEAKER pro tempore. The resolution described in subsection (b), in- and freedom for the Chinese people by Clerk will designate the amendment. cluding consideration of all amendments in supporting this bill, and indeed the en- The text of the amendment is as fol- disagreement (and all amendments thereto), tire package of bills before us. lows: and consideration of all debatable motions In summation, I ask that we do what is right; Amendment offered by Mr. Gilman: and appeals in connection therewith, shall be what is just; what we know we must do. I ask Convert the existing provisions of the bill limited to 10 hours, to be equally divided be- that you support H.R. 2358. to a TITLE I, and add at the end the follow- tween, and controlled by, the majority lead- Others may choose to ignore the pleas and ing: er and the minority leader or their des- ignees. Debate on any debatable motion or cries of anguish of the Chinese people, but TITLE II—AGREEMENT ON NUCLEAR appeal related to the conference report shall the United States Congress must not. COOPERATION The United States Congress must send a be limited to 1 hour, to be equally divided be- (A) AMENDMENT TO JOINT RESOLUTION RE- tween, and controlled by, the mover and the clear message to the Chinese regime and to LATING TO AGREEMENT FOR NUCLEAR CO- manager of the conference report. the world that it will defend the rights of all OPERATION.—The joint resolution entitled ‘‘(2) DEBATE ON AMENDMENTS IN DISAGREE- people to be free of oppression, of subjuga- ‘‘Joint Resolution relating to the approval MENT.—In any case in which there are tion, of persecution. and implementation of the proposed agree- amendments in disagreement, time on each The U.S. Congress must stand firm in the ment for nuclear cooperation between the amendment shall be limited to 30 minutes, to face of dictators and declare its support for United States and the People’s Republic of be equally divided between, and controlled China (Public Law 99–183; approved Decem- by, the manager of the conference report and those who cannot speak for themselves. The ber 16, 1985) is amended— United States Congress must stand up to Chi- the minority leader or his designee. No (1) in subsection (b)— amendment to any amendment in disagree- na's Communist regimeÐnot just with rhetoric, (A) by inserting ‘‘and subject to section 2,’’ ment shall be received unless it is a germane but with concrete actions. after ‘‘or any international agreement,’’; and amendment. We must tell the Chinese regime that the (B) in paragraph (1) by striking ‘‘thirty’’ ‘‘(3) CONSIDERATION OF VETO MESSAGE.— United States Congress will not sit on the and inserting ‘‘120’’; and Consideration in the Senate of any veto mes- sidelines any longer; that we are ready to take (2) by adding at the end the following: sage with respect to a joint resolution de- the necessary steps to help being an end to ‘‘SEC. 2. (a) ACTION BY CONGRESS TO DIS- scribed in subsection (b), including consider- APPROVE CERTIFICATION.—No license may be ation of all debatable motions and appeals in the atrocities and violations of human rights issued for the export to the People’s Repub- and basic liberties. connection therewith, shall be limited to 10 lic of China of any nuclear material, facili- hours, to be equally divided between, and H.R. 2358 is the tool. It is the action sup- ties, or components subject to the Agree- porting the message. controlled by, the majority leader and the ment, and no approval for the transfer or re- minority leader or their designees.’’. To summarize, H.R. 2358 assigns new dip- transfer to the People’s Republic of China of lomats to American embassies and consulates any nuclear material, facilities, or compo- The SPEAKER pro tempore. Pursu- for the exclusive purpose of monitoring human nents subject to the Agreement shall be ant to House Resolution 302, the gen- rights in China. given if, during the 120-day period referred to tleman from New York [Mr. GILMAN] H.R. 2358 denies entry into the United in subsection (b)(1) of the first section, there and the gentleman from Indiana [Mr. States to any Chinese official found to be in- is enacted a joint resolution described in HAMILTON] each will control 15 min- subsection (b) of this section. volved in the trafficking of human organs from utes. ‘‘(b) DESCRIPTION OF JOINT RESOLUTION.—A The Chair recognizes the gentleman political prisoners in China. joint resolution is described in this sub- The bill increases the number of legislative section if it is a joint resolution which has a from New York [Mr. GILMAN]. 1 days to review the President's required certifi- provision disapproving the President’s cer- Mr. GILMAN. Mr. Speaker, I yield 7 ⁄2 cation that China is complying with the agree- tification under subsection (b)(1), or a provi- minutes to the gentleman from Massa- ment for nuclear cooperation. It would also re- sion or provisions modifying the manner in chusetts [Mr. MARKEY] and ask unani- quire a Congressional vote of approval for the which the Agreement is implemented, or mous consent that he may be per- certification. both. mitted to yield that time to other H.R. 2358 requires State Department offi- ‘‘(c) PROCEDURES FOR CONSIDERATION OF Members. JOINT RESOLUTIONS.— cials to raise human rights concerns in every The SPEAKER pro tempore. Is there ‘‘(1) REFERENCE TO COMMITTEES.—Joint res- objection to the request of the gen- meeting with Chinese officials. olutions— Adds $10 million in funding for National En- ‘‘(A) may be introduced in either House of tleman from New York? dowment for Democracy projects in China. Congress by any member of such House; and There was no objection. Calls on the State Department to issue an ‘‘(B) shall be referred, in the House of Rep- Mr. GILMAN. Mr. Speaker, I yield annual report on the human rights situation resentatives, to the Committee on Inter- myself such time as I may consume. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10073 (Mr. GILMAN asked and was given ment should that prove necessary. Our for themselves these written assurances that permission to revise and extend his re- legislation ensures that the Congress we’ve been given . . . [Q] assurances specifi- marks.) has adequate time to examine China’s cally—different countries, specifically, say, Mr. GILMAN. Mr. Speaker, the Presi- Iran, Pakistan? . . . [A] Yes, just Iran . . . record of compliance with its non- they have safeguarded peaceful nuclear co- dent has announced his intention to proliferation commitments, particu- operation with both Pakistan and India, and submit to Congress the certification larly its pledge to provide no new nu- they told that at this particular point, necessary to implement the 1985 United clear assistance to Iran and to take ap- they’re not prepared to suspend those projects States-China Nuclear Cooperation propriate legislative action if that is . . . The President made very clear to him Agreement, thereby enabling the Peo- deemed necessary. that this was an essential requirement; we ple’s Republic of China to obtain Unit- Mr. Speaker, we stand at a critical needed to have this assurance on Iran, or ed States nuclear technology. No Unit- juncture with respect to our non- there could be no certification . . . [Q] Who ed States President, not President proliferation policy toward China. Im- is the assurance addressed to? [A] We’re not going to discuss the . . . specifics of the Reagan nor Bush, and until now not plementing a nuclear cooperation issue. [Q] Is it in a letter, though, that’s ad- President Clinton, has made such a cer- agreement is not a step that should be dressed to someone in particular in the U.S. tification. Why? Because Communist taken lightly with any nation. With government? [A] It’s an authoritative, writ- China’s nuclear, chemical, biological China, it is vital that we get it right ten communication.’’ Senior Administration and missile proliferation makes it the the first time. Accordingly, I urge my Official, press briefing, The White House, 10/ Wal-Mart of international commerce. colleagues to adopt this amendment 29/97, emphasis added. China’s record is not only reprehen- and to adopt the underlying bill. ‘‘We have received assurances from the Mr. Speaker, the text of the compen- Chinese that they will not engage in any new sible, it mocks repeated assurances to nuclear cooperation with Iran, and that the our Nation that it would stop pro- dium referred to in my remarks is as existing cooperation—there are two projects liferating to countries such as Paki- follows: in particular—will end. That is the assurance stan and Iran. ‘‘The question of assurance does not exist. we have received. As to the form of that as- In that regard, I urge all Members to China and Iran currently do not have any nu- surance, we will be discussing that with Con- examine the compendium I am placing clear cooperation . . . We do not sell nuclear gress . . . ’’. Sandy Berger, National Secu- weapons to any country or transfer related rity Advisory, press conference, 10/29/97 in the RECORD, a compendium dated technology. This is our long-standing posi- November 4, 1997, detailing China’s nu- ‘‘The United States and China reiterate tion, this policy is targeted at all countries.’’ their commitment not to provide any assist- clear nonproliferation promises from Foreign Ministry spokesman Shen Guofang, ance unsafeguarded nuclear facilities and nu- 1981 through 1997. Yet despite promises Los Angles, 11/2/97, Reuters, 11/3/97. clear explosion programs.’’ Joint U.S.-China and subsequent violations of those ‘‘We don’t have to take it on faith . . . We Statement, The White House, 10/29/97. promises, the Clinton administration is received clear-cut, specific assurances.’’ Sen- ‘‘China has taken new, concrete steps to willing to open the door to China for ior US official, AFP, 10/31/97 (referring to prevent nuclear proliferation that threaten critical United States nuclear assets. China’s vow not to commence new nuclear the interests of both countries. China has cooperation with Iran.) . . . Provided assurances addressing U.S. Moreover in the wake of last week’s China will . . . not help other countries de- summit, we have heard nothing that concerns about nuclear cooperation with velop nuclear weapons. At the same time, Iran . . . ’’. White House Fact Sheet, ‘‘Ac- gives us confidence that the Chinese China also holds that prevention of nuclear complishments of US/China Summit.’’ 10/29/ are willing to provide ironclad, en- proliferation should not affect international co- 97. forceable assurances that any promises operation on the peaceful use of nuclear energy. ‘‘. . . I think we have reached a point with regard to the transfer of nuclear The US administration is clear on this point where we’re satisfied that we have the assur- technology to Iran would be kept. and so is the international community.’’ ances that we need to have that China is not Permit me, Mr. Speaker, to describe Foreign Ministry spokesman Tang Guoqiang, engaging, will not engage in assistance to the possible shortfalls in the agree- Beijing, 10/30/97, Ta Kung Pao, 10/31/97 (em- states developing nuclear weapons, which phasis added). ment negotiated by the Clinton admin- would enable the President to go forward ‘‘President Jiang and I agreed that the with the Peaceful Nuclear Energy Agree- istration in order to begin nuclear United States and China share a strong in- ment of 1985’’ Senior White House official, commerce with China. The Chinese terest in stopping the spread of weapons of press conference, Washington, D.C., 10/29/97. have pledged only to halt new nuclear mass destruction and other sophisticated ‘‘China adopts a cautious and responsible cooperation with Iran, thereby allow- weaponry in unstable regions and rogue attitude toward nuclear exports. It has never ing continued cooperation between states; notably, Iran. I welcome the steps transferred nuclear weapons or relevant China and Iran on at least two existing China has taken and the clear assurances it technology to any other country. China’s has given today to help prevent the pro- contracts. Moreover, a possible loop- stand against nuclear weapons proliferation liferation of nuclear weapons and related is consistent with clear-cut; that is, China hole in the Chinese pledge could permit technology.’’ President Bill Clinton, press has consistently opposed nuclear weapons the resurrection of a contract that has conference, Washington, D.C., 10/29/97. proliferation. It does not advocate, encour- been suspended, but not canceled to ‘‘In May 1996, China committed not to pro- age, or engage in nuclear weapons prolifera- build a uranium enrichment facility in vide [unsafeguarded nuclear] assistance to . . . tion, nor has it helped other countries de- Iran since that contract would not fall Pakistan or anywhere else. We have mon- velop nuclear weapons. In the meantime, into the category of any new nuclear itored this pledge very carefully over the China takes the view that the fight against cooperation. course of the last 16, 18 months, and the Chi- nuclear weapons proliferation should not affect nese appear to be taking their pledge very international cooperation on the peaceful use of The administration made no headway seriously. We have no basis to conclude that with the Chinese on conditioning nu- nuclear energy. The American side is well they have acted inconsistently with this aware of the Chinese position on that.’’ For- clear cooperation with Pakistan or May 1996 commitment. Also, the Chinese eign Ministry spokesman Tang Guoqiang, with any other country besides Iran, have provided assurances with respect to nu- Beijing Central Peoples Radio, 10/28/97 (em- and the administration did not secure clear cooperation with Iran. What they have phasis added) any agreement with China that would assured us is that they . . . are not going to en- ‘‘I wish to emphasize once again China has halt the transfer of nuclear-capable gage in new nuclear cooperation with Iran, and never transferred nuclear weapons or rel- missiles to Iran or to other countries. that they will complete a few existing evant technology to other countries, includ- Mr. Speaker, because of these and projects, and these are projects which are ing Iran . . . China has never done it in the not of proliferation concern. They [will] other concerns, I have joined with the past, we do not do it now, nor will be do it complete them within a relatively short pe- in the future.’’ Foreign Ministry spokesman distinguished gentleman from Massa- riod of time . . . the assurances we received Shen Guofang, Kyodo, 10/21/97. chusetts [Mr. MARKEY] to introduce are . . . sufficiently specific and clear to meet ‘‘. . . China adheres to the policy that it this amendment which achieves two the requirements of our law and to advance does not advocate, encourage or engage in important goals. It extends from 30 to our national security interests, and they are proliferation of nuclear weapons nor assist 120 days the time for Congress to re- in the form of writing. They’re written, con- other countries in developing nuclear weap- view the President’s certification to fidential communications . . . I would call ons. For many years the Chinese Govern- China. It also establishes expedited them authoritative, written communications ment has exercised strict and effective con- .. . Today was when the final exchange took trol over nuclear and nuclear-related export, procedures in the House and Senate for place . . . We will make [them] available to including exchanges of personnel and infor- consideration of a resolution of dis- members of Congress in confidence, because mation, and has abided by the following approval of that certification or fur- these are confidential diplomatic commu- three principles: (1) serving peaceful pur- ther modifications to the 1985 agree- nications, an opportunity to read and judge poses only; (2) accepting IAEA safeguards; (3) H10074 CONGRESSIONAL RECORD — HOUSE November 5, 1997 forbidding transfer to any third country International Atomic Energy Agency’s safe- ons proliferation, and it does not advocate, without China’s consent. With regard to any guards and supervision. No unit or corpora- encourage or engage in nuclear proliferation. nuclear export, the recipient government is tion is allowed to cooperate with nuclear in- While engaging in cooperation with other always requested to provide to the Chinese stallations that have not accepted the sys- countries for the peaceful use of nuclear en- side an assurance in writing to acknowledge tem of safeguards and supervision of the ergy, China strictly abides by China’s three the above three principles and the export can International Atomic Energy Agency, nor principles on nuclear exports and accepts the proceed only after approval by relevant Chi- are they allowed to engage in exchanges of safeguards and supervision of the Inter- nese authorities . . . [regulations] strictly professional scientific and technical person- national Atomic Energy Agency.’’ Foreign prohibit any exchange of nuclear weapons re- nel and technological information . . .’’ Chi- Ministry spokesman Shen Guofung, Xinhua, lated technology and information with other nese State Council Circular No. 17, Beijing, 5/ 2/15/96. countries . . . No [Chinese] agency or com- 27/97 (translated by CRS). ‘‘Foreign Ministry spokesman Shen pany is allowed to conduct cooperation or ‘‘. . . we have absolutely binding assur- Guofang today denied reports that China has exchange of personnel and technological ances from the Chinese, which we consider a transferred nuclear technology to Pakistan. data with nuclear facilities not under IAEA commitment on their part not to export ring He said that China carries out normal inter- safeguards . . . [these] regulations are appli- magnets or any other technologies to national cooperation with Pakistan and cable . . . also to all activities related to nu- unsafeguarded facilities . . . The negotiating some other countries on the peaceful use of clear explosive devices . . . the Chinese side record is made up primarily of conversa- nuclear energy. The legitimate rights and in- wishes to emphasize that the prevention of tions, which were detailed and recorded, be- terests of all countries in the peaceful use of nuclear proliferation should in no way affect or tween US and Chinese officials.’’ Under Sec- nuclear energy should also be respected. hinder the normal nuclear cooperation for retary of State Peter Tarnoff, congressional China has constantly adopted a prudent and peaceful uses among countries, let along be used testimony, 5/16/96. responsible toward the export of nuclear en- as an excuse for discrimination and even appli- ‘‘Last week, we reached an understanding ergy. It is totally groundless to say that cation of willful sanctions against developing with China that it will no longer provide as- China has transferred nuclear technology to countries. The prevention of nuclear pro- sistance to unsafeguarded programs . . . sen- Pakistan.’’ Foreign Ministry spokesman liferation and peaceful uses of nuclear en- ior Chinese officials have explicitly con- Shen Guofang, as reported in Ta Kung Pao, 2/ ergy constitute the two sides of one coin . .. firmed our understanding the Chinese policy 9/96 (follows 2/8/96 Washington Times story this is the consistent policy of China.’’ Am- of not assisting unsafeguarded nuclear facili- about China’s transfer of ring magnets to bassador Li Changhe, Statement at Meeting ties would prevent future sales, future trans- Pakistan’s unsafeguarded uranium enrich- of Zangger Committee, Vienna, 10/16/97 (em- fers of ring magnets.’’ Secretary of State ment plant). phasis added). Warren Christopher, congressional testi- ‘‘China has constantly stood for . . . pursu- ‘‘China’s position on nuclear proliferation mony, 5/15/96. ing a policy of not supporting, encouraging is very clear . . . It does not advocate, en- ‘‘Being a signatory of the Nuclear Non- or engaging in the proliferation of nuclear courage, or engage in nuclear proliferation, Proliferation Treaty, China strictly abides weapons and assisting any other country in nor does it assist other countries in develop- by its treaty commitments and has never en- the development of such weapons . . . Since ing nuclear weapons. It always undertakes gaged in any activities in violation of its 1992 when [China] became a party to the [nu- its international legal obligations of pre- commitments. China’s position of opposing clear Non-Proliferation] treaty, it has strict- venting nuclear proliferation . . . China has nuclear weapons proliferation is constant ly fulfilled its obligations under the Treaty, always been cautious and responsible in han- and unambiguous. China will, as usual, con- including the obligation to cooperate fully dling its nuclear exports and exports of ma- tinue to honor its international commit- with the IAEA in safeguard application. terials and facilities that might lead to nu- ments and play a positive role in maintain- China follows three principles regarding nu- clear proliferation.’’ Statement by Foreign ing regional and world peace and stability.’’ clear exports: exports serving peaceful pur- Ministry spokesman Cui Tiankai, Beijing, Foreign Ministry spokesman Cui Tiankai, poses only, accepting IAEA safeguards . . . Xinhua, 9/15/97. Zhonggwo Ximven She, 5/15/96. Only specialized government-designated ‘‘The state highly controls nuclear exports ‘‘China strictly observes its obligations companies can handle nuclear exports and in and strictly performs the international obli- under the treaty and is against the prolifera- each instance they must apply for approval gation on nonproliferation of nuclear weap- tion of nuclear weapons. China pursues the from relevant governmental departments. ons it has undertaken. The state does not ad- policy of not endorsing, encouraging or en- All exports of nuclear materials and equip- vocate, encourage and engage in prolifera- gaging in the proliferation of nuclear weap- ment will be subject to IAEA safeguard. tion of nuclear weapons, and does not help ons, or assisting other countries in develop- China has never exported sensitive tech- other countries develop nuclear weapons. ing such weapons. The nuclear cooperation nologies such as those for uranium enrich- Nuclear exports are used only for peaceful between China and the countries concerned ment, reprocessing and heavy water produc- purposes and are subjected to International is exclusively for peaceful purposes. China tion.’’ Information Office of the State Coun- Atomic Energy Agency’s guarantee and su- will not provide assistance to unsafeguarded cil of the PRC White Paper: ‘‘China: Arms pervision . . . The state prohibits assistance and unsupervised Chinese nuclear facilities.’’ Control and Disarmament’’, Beijing Review, 11/27/95. to nuclear facilities not subject to Inter- Foreign Ministry spokesman, Xinhua, 5/11/96. ‘‘. . . there isn’t any nuclear cooperation national Atomic Energy Agency’s guarantee ‘‘Shen Guofang is an official press officer between China and Iran that is not under the and supervision, and does not engage in nu- of the Chinese government and he has said safeguard of the International Atomic En- clear exports or personnel and technological several times that China is not exporting nu- ergy Agency.’’ Foreign Ministry spokesman exchanges and cooperation with them.’’ Reg- clear arms material nor spreading nuclear ulations of the PRC on Control of Nuclear Chen Jian, Xinhua, 9/26/95. arms. The Central Intelligence Agency of the ‘‘. . . China as a State Party and particu- Exports, Xinhua, 9/11/97. United States, the CIA, has accorded to Shen ‘‘Our country . . . has followed the policy larly as a developing country with consider- made several mistakes. The claim that able nuclear industrial capabilities, strictly of not advocating, not encouraging, and not China is exporting so-called ring magnets to engaging in the proliferation of nuclear abides by the relevant provisions of the NPT Pakistan is one of the CIA’s mistakes, ac- to ensure the exclusive use [of such capabili- weapons, and not helping other countries to cording to Shen.’’ Interview with Chinese develop nuclear weapons . . . all relevant ties] for peaceful purposes . . .’’. Ambassador Shen Guofang, YLE Radio, Helsinki, 4/5/96. Sha Zukang, NPT Extension Conference, at agencies and units engaged in the activities ‘‘China has never transferred or sold any of foreign economic trade must thoroughly UN, 1/23/95. nuclear technology or equipment to Paki- ‘‘China does not engage in proliferation of implement our country’s policy on nuclear stan . . . We therefore hope the U.S. Govern- weapons of mass destruction . . .’’ Foreign exports; that is, not advocating, encourag- ment will not base its policy-making on Minister Qian Qichen, AP newswire, 10/4/94. ing, or engaging in the proliferation of nu- hearsay.’’ Foreign Ministry Deputy Sec- ‘‘China is a signatory to the Nuclear Non- clear weapons and not helping other coun- retary Shen Guofang, Hong Kong AFP, 3/26/96 proliferation Treaty. We do not support or tries develop nuclear weapons; only using (after the reported ring magnet sale to Paki- encourage nuclear proliferation, this has nuclear export items for peaceful purposes, stan). been a consistent position.’’ Premier Li accepting the International Atomic Energy ‘‘China, a responsible state, has never Peng, Beijing Central Television Program Agency’s safeguards and supervision, and not transferred equipment or technology for pro- One, 3/22/94. allowing the transfer of such items to third ducing nuclear weapons to any other coun- ‘‘[T]he Chinese government has consist- countries without our country’s permission; try. Nor, as a responsible state, will China do ently supported and participated in the and not giving assistance to the nuclear fa- so in the future.’’ Foreign Ministry spokes- international communities efforts for pre- cilities of those countries that have not ac- man, Xinhua, 2/15/96. venting the proliferation of nuclear weap- cepted the safeguards and supervision of the ‘‘China is a responsible country. We have ons.’’ Ambassador Hou Zhitong, address to International Atomic Energy Agency . . . not transferred, nor will we transfer to any the U.N. General Assembly, 10/21/92. Nuclear material, nuclear installations and country, equipment or technologies used in ‘‘[China] supports non-proliferation of nu- related technology, non-nuclear material manufacturing nuclear weapons. As a signa- clear weapons and other weapons of mass de- used for reactors, and nuclear-related dual- tory to the nuclear weapons non-prolifera- struction.’’ Foreign Minister Qian Qichen, at use installations, material, and related tech- tion treaty, China scrupulously abides by the the U.N. Conference on Disarmament and Se- nology . . . may not be supplied to or used by treaty concerning international legal obliga- curity Issues in the Asia-Pacific Region, 8/17/ nuclear facilities that have not accepted the tions toward the prevention of nuclear weap- 92. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10075 ‘‘The reports carried by some Western countries develop nuclear weapons.’’ Vice directive to all agencies of that large and newspapers and magazines alleging that Foreign Minister Qian Qichen, Beijing Re- complex government. As such, it constitutes China has provided Iran with materials, view, 3/30/87. a historic and positive change in China’s equipment, and technology that can be used ‘‘The State Department and its allies in- policies.’’ ACDA Director Kenneth Adelman, to produce nuclear weapons are utterly sist that the negotiators made no such con- congressional testimony, 7/31/85. groundless.’’ Foreign Ministry spokesman, cessions. They argue that despite the text of ‘‘Energy Department sources said a key Xinhua, 11/4/91. the [US/China nuclear] agreement, they have part of the administration’s presentation to ‘‘China has always stood for nuclear non- obtained private assurances from the Chi- Congress would be a classified summary of a proliferation, neither encouraging nor en- nese that Beijing will cooperate with unwrit- meeting between Li Peng and special US am- gaging in nuclear proliferation.’’ Premier Li ten American expectations. In particular, bassador and nuclear negotiator Richard T. Peng, Xinhua, 8/10/91. the chief American negotiator, Special Am- Kennedy in Peking in June. Kennedy was ‘‘The Chinese Government has made it bassador Richard T. Kennedy, has prepared a said to have ‘nailed down’ Chinese assur- clear that it adheres to a nuclear non- classified ‘Summary of Discussions,’ in ances that they will work to halt the spread proliferation policy. This means that China which he asserts that the Chinese have pro- of atomic weapons and will abide by all US does not support, encourage, or engage in nu- vided further pledges to reform their nuclear safeguard requirements. The sources said clear proliferation. We said so and have done export policies. Touting these unwritten, un- Kennedy wrote the summary and ‘showed it so, too.’’ Premier Li Peng, interview with official assurances, he claims that the China to the Chinese, and they said it’s consistent Iranian and Chinese journalists, Renmin pact would not compromise our vigilance with the way they view their policies.’ Sen. Ribao, 7/10/91. against the spread of nuclear weapons.’’ The Alan Cranston (D–Calif.) said he was prom- ‘‘China has struck no nuclear deals with New Republic, 11/25/85, p. 9. ised that written assurances of the Chinese Iran . . . This inference is preposterous.’’ ‘‘Since that time [1983], we have received position would be included in the nuclear Chinese embassy official Chen Guoqing, re- assurances from them [the Chinese govern- agreement package.’’ ‘‘US and China Sign butting a claim that China had sold nuclear ment] and we have seen nothing, and there is Nuclear-Power Pact,’’ Washington Post, 7/24/ technology to Iran, letter to Washington no evidence, that indicates that they are not 85. Post, 7/2/91. abiding by the assurances that they have ‘‘A long-dormant nuclear cooperation ‘‘The report claiming that China provides provided us.’’ Deputy Assistant Secretary of agreement with China apparently has been medium-range missiles for Pakistan is abso- State James R. Lilley, congressional testi- rejuvenated by new written assurances from lutely groundless. China does not stand for, mony, 11/13/85. China on its commitment to control the encourage, or engage itself in nuclear pro- ‘‘The People’s Republic of China has clear- spread of nuclear weapons, accorting to Sen- liferation and does not aid other countries in ly indicated that it shares our concerns ate and administration officials.’’ ‘‘US-China developing nuclear weapons.’’ Foreign min- about any nuclear weapons prolifera- Nuclear Pact Near: New Assurances Said Re- istry spokesman Wu Janmin, Zhongguo tion. . .’’. Secretary of Energy John S. ceived on Control of Weapons,’’ Washington Ximwen She, 4/25/91. Herrington, congressional testimony, 10/9/85. Past, 7/22/85. ‘‘China’s position is clear cut, that is, ‘‘The Chinese made it clear to us that ‘‘Discussions with China that have taken China won’t practice nuclear proliferation. when they say they will not assist other place since the initialling of the proposed Meanwhile we are against the proliferation countries to develop nuclear weapons, this [nuclear] Agreement have contributed sig- of nuclear weapons by any other coun- also applies to all nuclear explosives . . . We nificantly to a shared understanding with try. . .’’. Premier Li Peng, Xinhua, 4/1/91. are satisfied that the [nonproliferation] poli- China on what it means not to assist other ‘‘. . . the Chinese Government has consist- cies they have adopted are consistent with countries to acquire nuclear explosives, and ently supported and participated in the our own basic views.’’ Ambassador Richard in facilitating China’s steps to put all these international community’s efforts for pre- Kennedy, Department of State, congres- new policies into place. Thus, ACDA believes venting the proliferation of nuclear weap- sional testimony, 10/9/85. that the statements of policy by senior Chi- ons.’’ Ambassador Hou Zhitong, Xinhua, 10/ ‘‘The Chinese have also made a number of nese officials, as clarified by these discus- 24/90. high-level policy statements, and I would sions, represent a clear commitment not to ‘‘China seeks a policy of not encouraging emphasize that these were high-level policy assist a non-nuclear-weapon state in the ac- or engaging in nuclear proliferation and not statements and not mere toasts tossed off in quisition of nuclear explosives.’’ ACDA, ‘‘Nu- helping any country develop the deadly haste and casually. These clearly set forth clear Proliferation Assessment Statement,’’ weapons.’’ Ambassador Hou Zhitong, Xinhua, their position that they are opposed to the submitted to Congress on 7/24/85 with the US/ 9/12/90. spread of nuclear weapons and do not assist China Agreement for Cooperation, 7/19/85. ‘‘China has adopted a responsible attitude or encourage others to develop weapons.’’ ‘‘China is not a party to the NPT, but its [on nuclear cooperation], requiring the recip- Assistant Secretary of State Paul Wolfowitz, stance on the question is clear-cut and ient countries of its nuclear exports to ac- congressional testimony, 10/9/85. above-board . . . it stands for nuclear disar- cept IAEA safeguards and ensuring that its ‘‘Since negotiations began on the proposed mament and disapproves of nuclear pro- own nuclear import is for peaceful pur- agreement, China has made significant new liferation . . . In recent years, the Chinese poses.’’ Foreign Minister Qian Qichen, statements on its nonproliferation policy Government has more and more, time and Xinhua, 2/27/90. .. . These statements show that China is op- again reiterated that China neither advo- ‘‘China does not advocate, or encourage, or posed to the spread of nuclear explosives to cates nor encourages nuclear proliferation, engage in nuclear proliferation and would additional countries.’’ Ambassador Richard and its cooperation with other countries in only cooperate with other countries in the Kennedy, Department of State, congres- the nuclear field is only for peaceful pur- peaceful application of nuclear energy.’’ For- sional testimony, 9/12/85. poses’’. Ambassador Hc Qian Jiadong, speech eign Minister Qian Qichen, Renmin Ribao, 9/ ‘‘The People’s Republic of China has clear- given at the Conference on Disarmament in 15/89. ly indicated that it shares our concerns Geneva, 6/27/85 (quoted by Amb. Richard Ken- ‘‘China, though not a [NPT] signatory, has about any nuclear weapons proliferation nedy in congressional testimony, 7/31/85). repeatedly stated that it abides by the prin- . . .’’ Assistant Secretary of Energy George ‘‘I wish to reiterate that China has no in- ciples of nuclear nonproliferation.’’ Xinhua, Bradley, congressional testimony, 9/12/85. tention, either at the present or in the fu- 5/9/89. ‘‘The Chinese know that nuclear coopera- ture, to help non-nuclear countries develop ‘‘As everyone knows, China does not advo- tion with us rests on their strict adherence nuclear weapons . . . China’s nuclear co- cate nor encourage nuclear proliferation. to basic nonproliferation practices discussed operation with other countries, either at China does not engage in developing or as- and clarified at such great length.’’ ACDA present or in the future, is confined to peace- sisting other countries to develop nuclear Assistant Director Norman A. Wulf, congres- ful purposes alone.’’ Vice Premier Li Peng, weapons.’’ Foreign Ministry spokesman, sional testimony, 9/12/85. Xinhua, 1/18/85. Beijing radio, 5/4/89. ‘‘Our contacts with the Chinese . . . have ‘‘We are critical of the discriminatory ‘‘The cooperation between China and Paki- demonstrated clearly that they appreciate treaty on the nonproliferation of nuclear stan in the sphere of nuclear energy [is] en- the importance we attach to nonprolifera- weapons, but we do not advocate or encour- tirely for peaceful purposes. The relevant tion. We are satisfied that the policies they age nuclear proliferation. We do not engage agreements signed between the two coun- have adopted are consistent with our own in nuclear proliferation ourselves, nor do we tries consist of specific provisions guarantee- basic views.’’ Ambassador-At-Large Richard help other countries develop nuclear weap- ing safety. The allegations that China has Kennedy, congressional testimony, 7/31/85. ons.’’ Premier Zhao Ziyang, White House been assisting Pakistan in the field of nu- ‘‘Over these past two years, the Chinese state dinner on 1/10/84, Xinhua, 1/11/84 (note: clear weapons . . . are completely groundless Government has taken a number of impor- a US official later said that ‘‘These were sol- . . .’’. Foreign Ministry spokesman Li tant nonproliferation steps. First, it made a emn assurances with in fact the force of Zhaoxing, Beijing Radio, 1/19/89. pledge that it does ‘not engage in nuclear law,’’ AP, 6/15/84). ‘‘[Secretary of Defense Frank] Carlucci proliferation’ nor does it ‘help other coun- ‘‘China does not encourage or support nu- said Chinese leaders emphasized that they tries develop nuclear weapons’. The sub- clear proliferation.’’ Vice Premier Li Peng, would never sell nuclear weapons to foreign stance of this pledge has been reaffirmed sev- Xinhua, 10/18/83. nations. . .’’. Washington Post, 9/8/88. eral times by Chinese officials both abroad ‘‘Like many other peace-loving countries, ‘‘China does not advocate or encourage nu- and within China. In fact, China’s Sixth Na- China does not advocate or encourage nu- clear proliferation, nor does it help other tional People’s Congress made this policy a clear proliferation, and we are emphatically H10076 CONGRESSIONAL RECORD — HOUSE November 5, 1997 opposed to any production of nuclear weap- ies can be made within the 4-month pe- tration had relied upon a verbal state- ons by racists and expansionists such as riod, and I do not think it is wise for ment sealed by a champagne toast to South Africa and Israel.’’ Yu Peiwen, head of the United States to put into law a conclude the agreement, and we all Chinese delegation to Conference on Disar- framework, announce that to the know how well China lived up to that mament in Geneva, Xinhua, 8/4/81. world, so to speak, put that before the solemn pledge. And now we find our- Mr. Speaker, I reserve the balance of Chinese over a period of many years, selves in what might be an identical my time. and then, as we come to the final part situation. The administration says it Mr. HAMILTON. Mr. Speaker, I yield of the consideration with the Presi- got some verbal nonproliferation com- myself such time as I may consume. dent’s certification, suddenly say, we mitments from China and some written b 1845 are changing the rules of procedure. commitments that no one has yet seen. That is not the way a responsible What has been made public about Mr. Speaker, I rise in opposition to power should act. China’s nonproliferation commitment this amendment. The Gilman-Markey I urge that this amendment be de- seems to have some problems. One, the amendment does two things, both of feated. agreement only prevents new nuclear which I think retroactively move the Mr. Speaker, I reserve the balance of cooperation with Iran’s nuclear weap- goalposts in our nonproliferation nego- my time. ons programs and allows continued co- tiations with China. Mr. MARKEY. Mr. Speaker, I yield operation between China and Iran to The first thing it does, as the distin- myself as much time as I may take place in at least two nuclear con- guished gentleman from New York consume. tracts. said, is to extend the time for congres- Mr. Speaker, I rise in favor of the The agreement appears to have a sional consideration of the President’s Gilman-Markey amendment. We are all loophole that could allow the resurrec- considerations from 30 to 120 days of familiar with China’s past proliferation tion of a currently suspended but not continuous session. The second thing record. Over the years, China has been canceled contract to build a uranium that it does is to provide for expedited the Wal-Mart of weapons of mass de- enrichment facility in Iran since that procedures for consideration of a con- struction for countries such as Iran contract would not fall into the cat- gressional joint resolution of dis- and Pakistan. Over the years, China egory of new nuclear cooperation. approval. has perfected the game of promising The agreement does not condition Now what we have here is a statutory the United States that it would stop its nuclear cooperation with Pakistan or framework that we have had in exist- nuclear garage sales with a nudge and any other country besides Iran. ence for a number of years that sets a wink to the Ayatollahs of the world. The agreement does not contain pro- out the procedure to be followed in Last week, China scored the winning visions that would halt the transfer of these nonproliferation negotiations point in its game of nuclear ‘‘trick or nuclear-capable missiles to Iran or with China. As we come, so to speak, to treat.’’ It got to take the treat and to other countries. the fourth quarter of the game, we are play the trick. They got the treat of Now perhaps once Congress gains ac- suddenly moving the goalposts, and I U.S. nuclear exports and the trick of cess to all the information, we will de- just do not think that is a good thing assisting Iran and Pakistan to build cide that the promises that have been for us to do. The amendment retro- the so-called Islamic bomb. made are sufficient. On the other hand, actively moves the goalposts in our The President has announced that he after we hold hearings, review the doc- nonproliferation negotiations with will certify the 1985 nuclear coopera- uments, and have some time to observe China. tion agreement with China, claiming China’s behavior, we may come to the Now the second thing I think this that China has been sufficiently mov- conclusion that the agreement con- amendment does is to delay the dialog ing forward and becoming a responsible tains empty or insufficient promises, with China. I think this amendment, member of the international non- and we may want to do something even though it is couched in procedural proliferation community and is there- about it. The gentleman from New York [Mr. terms, places at risk our ability to per- fore deserving of access to American nuclear technology. GILMAN] and I have made this amend- suade the Chinese to move in our direc- However, it was only this past June ment to give Congress the additional tion on a whole range of issues that that the CIA had this to say about time it is going to need in order to separate our two countries. China is in- China: During the last half of 1996, make this agreement, ultimately care- evitably going to see this amendment China was the most significant supplier fully fashioned to advance the goals as part of an attempt to delay or to de- of weapons of mass destruction-related which Congress has been trying to pro- feat the President’s certification re- goods and technology to foreign coun- tect which this country has been ad- garding the United States-China nu- tries. The Chinese provided a tremen- vancing in the years ahead. I hope that clear agreement, and I do not think it dous variety of assistance to both Iran all Members of the Congress can sup- is too difficult to guess how the Chi- and Pakistan’s ballistic missile pro- port us this evening in sending this nese will respond. Beijing will suspend grams. Pakistan was very aggressive in very important message. its current nonproliferation dialog seeking out equipment, material, and Mr. Speaker, I reserve the balance of with us and thereby make further technology for its nuclear weapons pro- my time. progress on these important issues vir- gram, with China as its principal sup- Mr. HAMILTON. Mr. Speaker, I yield tually impossible. plier. China has repeatedly pledged to 3 minutes to the gentleman from Cali- The third point I would make is that curb its habit of providing nuclear mis- fornia [Mr. BERMAN]. I think current law, with the 30-day sile, chemical, and biological weapons (Mr. BERMAN asked and was given provision of continuous session, pro- to countries such as Iran and Pakistan, permission to revise and extend his re- vides ample time to review the certifi- but China has repeatedly broken its marks.) cation of the President. That review pledges. Mr. BERMAN. Mr. Speaker, I rise period will not expire under current The nuclear cooperation agreement both in support of the underlying bill law until February, and what that does was negotiated in 1985, but it has not which I think is a very sensible effort is give us 4 months to review the cer- been implemented because no Presi- to augment our ability to ascertain the tification. dent has been able to meet the congres- human rights situation in China by So although on the surface this is a sionally mandated conditions associ- strengthening our on-the-ground oper- procedural amendment seeking more ated with its implementation which in- ations there and the Gilman-Markey time and seeking an expedited proce- clude Presidential certification that amendment which, to me, without dure, I think in fact it will have delete- China has become a responsible mem- prejudicing what our decision would be, rious impact on the substance of the ber of the international nonprolifera- enhances Congress’ ability and the ad- matter. I do not think we should try to tion community. I do not believe that ministration’s ability to ensure that prejudge the nuclear agreement, we this was the case in 1985, and I do not the representations and commitments should judge it on its merits. There is believe that it is now. made by the Chinese in the area of nu- a lot of inquiry that has to be made A 1985 AP story about the agreement clear proliferation are being imple- with respect to it. I think those inquir- pointed out that the Reagan adminis- mented and forced by expanding the November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10077 time in which Congress has to review That is what the Gilman-Markey Ms. PELOSI. Mr. Speaker, I thank and decide whether to allow or dis- amendment is all about. That is why I the distinguished gentleman for yield- approve of the agreement which has support the Gilman-Markey amend- ing me this time, even though I am not been certified. ment. in agreement with his position, but I China’s past record of abiding by its Mr. MARKEY. Mr. Speaker, I yield 2 appreciate his generosity. international commitments not to aid minutes to the gentleman from New Mr. Speaker, I rise in strong support the proliferation of weapons of mass Jersey [Mr. PALLONE]. of the Gilman-Markey amendment to destruction is not a good one. Congres- Mr. PALLONE. Mr. Speaker, I rise in the underlying bill of the gentlewoman sional skepticism about Chinese prom- support of the Gilman-Markey amend- from Florida [Ms. ROS-LEHTINEN]. I ises is clearly warranted. There is time ment. support that bill, as well as this to consider the agreement, and the ex- Mr. Speaker, last month I called on amendment. tension of that time and the expedited the administration not to certify that This is probably the most important procedure which would allow a decision China has stopped its exportation of issue that we will debate on this whole to be implemented without the threat nuclear technology to unregulated China issue in the House. I certainly countries, and I wrote to President of filibuster or delay in the other body care about promoting democratic free- Clinton urging that the administration is very critical in reducing the skep- doms in China, and I am very con- halt preparations to recertify China ticism and reinforcing congressional cerned about the $50 billion trade defi- and spoke out against it here in the support for the agreement should the cit that we will suffer this year with House. China. But even if those two issues record of implementation bring us to Mr. Speaker, granting certification that conclusion. were not a factor in our U.S.-China re- to China now is the wrong thing to do, lationship, the issue of the prolifera- So for that reason, I think both the given China’s record of exporting nu- Chinese and the administration should tion of weapons of mass destruction is clear technology. The recent action by the most serious issue that we in the welcome this. This gives us a greater the Chinese premier to sign regulations time to determine if, in fact, it is true Congress have to deal with. It is about limiting nuclear exports pales in com- nothing short of the safety of the that the representations made have parison to Chinese actions of the past been kept, the commitments made world. 12 years which argue for continued pru- I am afraid that the President’s move with respect to export controls and the dence and vigilance. implementation of a meaningful export to certify that China is in accord with I am particularly concerned about the cooperative agreements on the nu- control regime are being followed Beijing’s pattern of transferring ring through. clear accords is just a fiction, and I be- magnets, an important component for lieve that it is very necessary for Con- By reducing our concern, it leads building nuclear weapons for a Paki- gress to take a very close look at what people to come to a fact-based conclu- stani nuclear facility. I am concerned the Chinese have promised and what sion by adding to the time we have to that the administration appears to be the prospects are for their keeping look at it. My fear is that if the exist- giving insufficient consideration to their promises, because indeed the law ing law remains in place, we will be China’s recent transfer of nuclear tech- on proliferation and certification calls rushed into a decision, we will be nology to unregulated nuclear facili- for performance before a country can forced to make decisions based on the ties in Pakistan. receive certification, and President past record rather than the present The administration will be granting Clinton is intending to give certifi- record, and so I think the gentleman certification despite CIA findings that cation on the basis of promises. from New York [Mr. GILMAN] and the the Chinese have sold 5,000 ring magnets to Pakistan for its uranium My colleagues have reviewed some of gentleman from Massachusetts [Mr. the promises made by China and prom- MARKEY] have an excellent amendment enrichment facilities, and ring magnets can be used in the building of ises not kept by China, and I would be here, and I urge the body to adopt it. happy to share the pages and pages and Mr. GILMAN. Mr. Speaker, I yield 1 nuclear weapons. The administration is pages of unkept promises on the sub- minute to the gentleman from Califor- apparently willing to ignore China’s ject of proliferation, but I will just nia [Mr. ROHRABACHER], a member of continued support of Pakistan’s com- mitment to build a plutonium produc- refer to one in particular. our committee. On May 11, 1996, the Chinese pledged Mr. ROHRABACHER. Mr. Speaker, I tion reactor and a plutonium reproc- essing plant. These facilities are essen- that ‘‘China will not provide assistance rise in strong support of the Gilman- to unsafeguarded nuclear facilities.’’ Markey amendment. tial for a nuclear weapons program, and despite the protests of United The end of that year, December 1996, I was in Cambodia not too long ago the CIA’s assessment on China’s non- with a United States team of military States lawmakers, China continues to assist Pakistan in building a sophisti- proliferation record stated, ‘‘During personnel trying to clear out mines in the last half of 1996, China was the Cambodia, and they told me that there cated nuclear arsenal. Unfortunately, this arsenal is not subject to inter- most significant supplier of weapons of was a new mine that they were having mass destruction and technology to trouble teaching the Cambodians how national inspection. Furthermore, the administration foreign countries. The Chinese provided to get rid of, how to defuse, because it a tremendous variety of assistance to was a smart mine, and eventually that continues to look the other way as China continues to export technology both Iran and Pakistan’s ballistic mis- mine exploded in the hands of someone siles programs. Pakistan was very ag- trying to defuse it. It was designed to and ballistic missile components to Pakistan, a country that is not a mem- gressive in seeking out equipment, ma- kill Americans or anyone else trying to terial and technology for its nuclear defuse mines. When they opened it up, ber of the International Atomic Energy Agency and bans investigators from weapons program, with China as its what did they find? They found a chip several of its nuclear facilities. principal supplier.’’ from Motorola, a Motorola chip that Mr. Speaker, clearly, there is a lot of That was 6 months after the pledge. was designed specifically to make it skepticism and many unanswered ques- Then, this year, in talking about the impossible to defuse these mines with- tions about granting the certification. certification, President Clinton said, out the loss of American military per- Let us pass this common sense, the Gil- after the CIA, in an unclassified report sonnel. man-Markey neutral resolution, so to Congress, revealed that, President We need control of our technology that our decision is based on the com- Clinton said, ‘‘China has lived up to its when it is going into the hands of vi- plete review of the terms of the agree- pledge not to assist unsafeguarded nu- cious dictatorships like we find in the ment and not just rush into rubber- clear facilities in third countries and is mainland in China. If we do not impose stamping an agreement that we may developing a system of export controls these restrictions on technology or just later come to regret. to prevent the transfer of sales of tech- handle this issue with care, it is going nology and weapons of mass destruc- to come back and haunt us. It is going b 1900 tion, but China still maintains some to hurt our national security, and Mr. HAMILTON. Mr. Speaker, I yield troubling weapons relationship.’’ Americans will be dead if we do not 4 minutes to the distinguished gentle- That last sentence is fraught with take the proper care. woman from California [Ms. PELOSI]. meaning because it covers a very vast H10078 CONGRESSIONAL RECORD — HOUSE November 5, 1997 array of violations by China, but China conditions unspecified to certain na- do not do it, we do not proliferate, and still maintains some troubling weapons tions, which are specified. in any case, we will not do it anymore. supply relationships. That means they Now, I do not think that Congress They have, in fact, been proliferating, are still proliferating weapons of mass can review this lengthy document in and they have been doing it all the way destruction. only 30 days and determine whether or up to the present time. President Clinton said that only a not China has complied with all of the Mr. Speaker, this is the report of the short while after the Office of Naval In- conditions of the secret document Director of Central Intelligence to Con- telligence Report on Worldwide Mari- which we cannot see. I think it will gress dated June 1997, and what it says, time Challenges, March 1997, stated, take us a little bit longer. So I am sug- it has been quoted in this debate pre- and this is blown up for the review of gesting that our colleagues should sup- viously, is that China was the primary my colleagues, port this amendment. source of nuclear-related equipment Discoveries after the Gulf War clearly indi- Mr. Speaker, 120 days is not too long and technology to Pakistan and a key cate that Iran maintained an aggressive to certify whether or not China is real- supplier to Iran during the reporting weapons of mass destruction procurement ly complying with conditions that we period. Incidentally, Iran also obtained program. A similar situation exists today in would like to see for a country to considerable chemical weapons-related Iran, with a steady flow of materials and whom we are going to transfer critical assistance from China in the form of technologies from China to Iran. This ex- change is one of the most active weapons of nuclear technology, because I tell my production equipment and technology. mass destruction programs in the Third colleagues, if we transfer that tech- The Chinese Foreign Minister told us World and is taking place in a region of great nology and it is misused, it will seem at our breakfast here just a few days strategic interest to the United States. like a lifetime to people who voted to ago with President Jiang Zemin and I just want to close by saying, when allow the Chinese to have that tech- the Foreign Minister that China has we asked President Jiang in the break- nology to transfer to America’s en- never done these things. So we cannot fast, the famous breakfast meeting, has emies around the world. accept their assurances, and yet that is China engaged in the proliferation of So support this amendment. It is rea- all we have. weapons of mass destruction; well, we sonable that Congress should have 120 The Presidential certification re- know they have, but: please comment days before the United States takes quired by law is based on a prospective on China’s proliferation, he deferred to this unprecedented step. promise, a piece of paper, even though his foreign minister who stood up and Mr. HAMILTON. Mr. Speaker, how we know that what they are telling us said China has never proliferated any much time do I have remaining? today that they have not done in the nuclear technology, has never pro- The SPEAKER pro tempore. The gen- past is untrue. China has a huge credi- liferated any nuclear technology; tleman from Indiana [Mr. HAMILTON] bility gap. never. has 4 minutes, and the gentleman from The assertion by China’s foreign min- So when we base our policy on prom- New York [Mr. GILMAN] has 2 minutes. istry that China would refuse to pro- ises by China, I think we have to look Mr. HAMILTON. Mr. Speaker, I yield vide America with assurances on nu- at the record. The Congress needs the 1 minute to the distinguished gen- clear cooperation with Iran since China additional time to review that. I urge tleman from California [Mr. COX]. was not engaged in such cooperation my colleagues to support the Gilman- I understand he wants an additional which led up to the summit are an indi- Markey amendment. minute. cation of what we are up against. This Mr. HAMILTON. Mr. Speaker, I yield Mr. GILMAN. Mr. Speaker, I yield 2 bill, this amendment to the bill, does 1 minute to the distinguished gen- additional minutes to the gentleman nothing more than give Congress ade- tleman from Oregon [Mr. DEFAZIO]. from California [Mr. COX]. quate time to discharge its responsibil- Mr. MARKEY. Mr. Speaker, I yield 1 Mr. HAMILTON. Mr. Speaker, I have ity, which we have had since 1954. minute to the gentleman from Oregon the right to close? In the circumstances, since China’s [Mr. DEFAZIO]. The SPEAKER pro tempore. The gen- cooperation is going to be entirely pro- The SPEAKER pro tempore (Mr. tleman from Indiana [Mr. HAMILTON] spective, it is utterly reasonable, and I HASTINGS of Washington). The gen- has the right to close. urge the support of my colleagues for tleman from Oregon [Mr. DEFAZIO] is The gentleman from California [Mr. this very reasonable amendment. recognized for 2 minutes. COX] is recognized for 3 minutes. Mr. HAMILTON. Mr. Speaker, I yield Mr. DeFAZIO. Mr. Speaker, I thank Mr. COX of California. Mr. Speaker, I myself the balance of the time. my colleagues for yielding me this thank both gentlemen for yielding The SPEAKER pro tempore. The gen- time. time. tleman from Indiana [Mr. HAMILTON] is I think the gentlewoman from Cali- The 1954 Atomic Energy Act is at recognized for 3 minutes. fornia [Ms. PELOSI] was most eloquent bottom what we are discussing here Mr. HAMILTON. Mr. Speaker, first of on this issue. The bottom line here is and requires a joint resolution of Con- all, let me simply say that a number of that the President, under pressure gress before any nuclear-related trade my colleagues here have expressed from a failing U.S. nuclear industry, between an United States company or their very deep concern about this cer- because there has not been a new nu- the United States Government and any tification that the President will clear plant constructed in the United other country, so Congress has to act. make. I share that concern. They have States in more than a dozen year, and Senator GLENN amended this law in expressed a lot of suspicions about Chi- none are proposed, is being pressured 1978 with the Nuclear Nonproliferation nese conduct on proliferation over a pe- to transfer critical nuclear technology Act, and that law forbids nuclear-relat- riod of years. I also share that concern. to China, a country that has a long- ed exports to any country that, after They are quite right, those who sup- term documented record of transfer- March 10, 1978, assisted, encouraged or port this amendment, to be deeply con- ring technology for weapons of mass induced any non-nuclear Nation to en- cerned about it. They have pointed to destruction to rogue states. China has gage in nuclear activities. That in- instances where China has not kept its broken all of its past promises in this cludes civilian nuclear activities. word, and I appreciate that. area. On December 16, 1985, Congress But I also want to point out here But now, now, things are different, passed a joint resolution prospectively that this Congress in 1985 adopted a things are very different. They have approving a U.S.-People’s Republic of framework by which we would consider signed a new agreement. Here it is. Oh, China nuclear sale, provided that prior certifications. We passed that law. We we cannot see it. Well, neither can I. It to the implementation of that agree- adopted the framework, and now, let it is a secret agreement. Now, they broke ment the President certifies that the be clear that at the last minute, we are the written agreements, they broke the People’s Republic of China is a member changing the rules of the game. We are verbal agreements, all done publicly, in good standing of the community of doing exactly what we accused the Chi- but now they have signed this, this se- nonproliferating nations. nese of doing. We are changing the cret agreement here, my colleagues As my colleagues have heard from all rules of the game. can see, it is quite lengthy, saying that that has gone before, the People’s Re- I do not think that is the way a re- they will not do it again, under certain public of China takes the view that we sponsible power should act. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10079 We passed a law, 30 days for certifi- Crapo Jefferson Pascrell Velazquez Watts (OK) Whitfield Cummings Jenkins Pastor Vento Waxman Wicker cation for review. It did not have the Cunningham John Paul Visclosky Weldon (FL) Wise expedited procedures in it that this Danner Johnson (WI) Paxon Walsh Weldon (PA) Wolf amendment adopts. Davis (FL) Johnson, E. B. Pease Wamp Weller Woolsey I know I am whistling in the wind Davis (IL) Johnson, Sam Pelosi Waters Wexler Wynn Davis (VA) Jones Peterson (MN) Watkins Weygand Young (AK) here because this amendment will be Deal Kanjorski Peterson (PA) Watt (NC) White Young (FL) adopted overwhelmingly, but I simply DeFazio Kaptur Petri NAYS—29 want to point out to my colleagues DeGette Kasich Pickering that we passed a law, we provided the Delahunt Kelly Pickett Bereuter Gillmor Meek DeLauro Kennedy (MA) Pitts Blunt Hall (TX) Moran (VA) framework, now we are trying to DeLay Kennedy (RI) Pombo Brown (CA) Hamilton Payne change that framework at the very end Dellums Kildee Pomeroy Crane Hastings (FL) Roemer of the game. The Chinese have a right Deutsch Kilpatrick Porter Dingell Houghton Sawyer to complain about that. Diaz-Balart Kim Portman Dooley Johnson (CT) Shays Dickey Kind (WI) Poshard Dreier Kennelly Skaggs Mr. SOLOMON. Mr. Speaker, I rise in Dicks King (NY) Price (NC) English Kolbe Snyder strong support of this amendment by Mr. GIL- Dixon Kingston Pryce (OH) Fazio LaHood Stump Foglietta Manzullo MAN and Mr. MARKEY. Doggett Kleczka Quinn Doolittle Klink Radanovich Mr. Speaker, I just have to say, last week Doyle Klug Rahall NOT VOTING—10 we were treated to a farce. I am just aghast Duncan Knollenberg Ramstad Bunning McKinney Schumer that this administration would, presumably with Dunn Kucinich Rangel Cubin Riggs Yates Edwards LaFalce Redmond Flake Riley a straight face, send a certification over to this Ehlers Lampson Regula Gonzalez Schiff Congress that Communist China is a respon- Ehrlich Lantos Reyes sible partner in nuclear nonproliferation. Emerson Largent Rivers b 1936 What is a paper promise against hard his- Engel Latham Rodriguez Ensign LaTourette Rogan Mr. KOLBE, Mrs. MEEK of Florida, torical facts? And the facts are that China is Eshoo Lazio Rogers Messrs. STUMP, HALL of Texas, and one of the most irresponsible proliferators in Etheridge Leach Rohrabacher FOGLIETTA, Mrs. KENNELLY of Con- the world. Evans Levin Ros-Lehtinen necticut, and Messrs. SAWYER, Mr. Speaker, this responsible amendment Everett Lewis (CA) Rothman Ewing Lewis (GA) Roukema SHAYS, and SKAGGS changed their doesn't kill any planned nuclear deal with Farr Lewis (KY) Roybal-Allard vote from ‘‘yea’’ to ‘‘nay.’’ China. It simply gives the people's Represent- Fattah Linder Royce Mr. JONES and Mr. DAVIS of Florida atives a little more time to review the process. Fawell Lipinski Rush changed their vote from ‘‘nay’’ to Filner Livingston Ryun It would be irresponsible and dangerous to Foley LoBiondo Sabo ‘‘yea.’’ vote no and I urge an ``aye'' vote. Forbes Lofgren Salmon So the amendment was agreed to. Mr. HAMILTON. Mr. Speaker, I yield Fossella Lowey Sanchez The result of the vote was announced back the balance of my time. Ford Lucas Sanders as above recorded. Fowler Luther Sandlin The SPEAKER pro tempore. All time Fox Maloney (CT) Sanford PERSONAL EXPLANATION has expired. Frank (MA) Maloney (NY) Saxton Mr. RIGGS. Mr. Speaker, on rollcall No. The question is on the amendment Franks (NJ) Manton Scarborough Frelinghuysen Markey Schaefer, Dan 579, I was unavoidably detained performing offered by the gentleman from New Frost Martinez Schaffer, Bob other congressional duties and unable to vote. York [Mr. GILMAN]. Furse Mascara Scott Had I been present, I would have voted ``yes.'' The question was taken; and the Gallegly Matsui Sensenbrenner The SPEAKER pro tempore (Mr. Speaker pro tempore announced that Ganske McCarthy (MO) Serrano Gejdenson McCarthy (NY) Sessions HASTINGS of Washington). Pursuant to the ayes appeared to have it. Gekas McCollum Shadegg House Resolution 302, the previous Mr. GILMAN. Mr. Speaker, on that I Gephardt McCrery Shaw question is ordered on the bill, as demand the yeas and nays. Gibbons McDade Sherman Gilchrest McDermott Shimkus amended. The yeas and nays were ordered. Gilman McGovern Shuster The question is on the engrossment The SPEAKER pro tempore. Without Goode McHale Sisisky and third reading of the bill. objection, the Chair will reduce to 5 Goodlatte McHugh Skeen The bill was ordered to be engrossed Goodling McInnis Skelton minutes the time for any electronic Gordon McIntosh Slaughter and read a third time, and was read the vote on passage without intervening Goss McIntyre Smith (MI) third time. business or debate, other than engross- Graham McKeon Smith (NJ) The SPEAKER pro tempore. The ment or third reading. Granger McNulty Smith (OR) Green Meehan Smith (TX) question is the passage of the bill. There was no objection. Greenwood Menendez Smith, Adam The question was taken; and the The vote was taken by electronic de- Gutierrez Metcalf Smith, Linda Speaker pro tempore announced that vice, and there were— yeas 394, nays 29, Gutknecht Mica Snowbarger the ayes appeared to have it. Hall (OH) Millender- Solomon not voting 10, as follows: Hansen McDonald Souder RECORDED VOTE [Roll No. 579] Harman Miller (CA) Spence Ms. ROS-LEHTINEN. Mr. Speaker, I Hastert Miller (FL) Spratt YEAS—394 Hastings (WA) Minge Stabenow demand a recorded vote. Abercrombie Bilirakis Canady Hayworth Mink Stark A recorded vote was ordered. Ackerman Bishop Cannon Hefley Moakley Stearns The SPEAKER pro tempore. This is a Aderholt Blagojevich Cardin Hefner Mollohan Stenholm 5-minute vote. Allen Bliley Carson Herger Moran (KS) Stokes Andrews Blumenauer Castle Hill Morella Strickland The vote was taken by electronic de- Archer Boehlert Chabot Hilleary Murtha Stupak vice, and there were—ayes 416, noes 5, Armey Boehner Chambliss Hilliard Myrick Sununu not voting 12, as follows: Bachus Bonilla Chenoweth Hinchey Nadler Talent Baesler Bonior Christensen Hinojosa Neal Tanner [Roll No. 580] Baker Bono Clay Hobson Nethercutt Tauscher AYES—416 Baldacci Borski Clayton Hoekstra Neumann Tauzin Abercrombie Barrett (NE) Blagojevich Ballenger Boswell Clement Holden Ney Taylor (MS) Ackerman Barrett (WI) Bliley Barcia Boucher Clyburn Hooley Northup Taylor (NC) Aderholt Bartlett Blumenauer Barr Boyd Coble Horn Norwood Thomas Allen Barton Blunt Barrett (NE) Brady Coburn Hostettler Nussle Thompson Andrews Bass Boehlert Barrett (WI) Brown (FL) Collins Hoyer Oberstar Thornberry Archer Bateman Boehner Bartlett Brown (OH) Combest Hulshof Obey Thune Armey Becerra Bonilla Barton Bryant Condit Hunter Olver Thurman Bachus Bentsen Bonior Bass Burr Conyers Hutchinson Ortiz Tiahrt Baesler Bereuter Bono Bateman Burton Cook Hyde Owens Tierney Baker Berman Borski Becerra Buyer Cooksey Inglis Oxley Torres Baldacci Berry Boswell Bentsen Callahan Costello Istook Packard Towns Ballenger Bilbray Boucher Berman Calvert Cox Jackson (IL) Pallone Traficant Barcia Bilirakis Boyd Berry Camp Coyne Jackson-Lee Pappas Turner Barr Bishop Brady Bilbray Campbell Cramer (TX) Parker Upton H10080 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Brown (FL) Gilman McCarthy (MO) Schaefer, Dan Spence Upton labor, Chinese citizens can be detained for up Brown (OH) Goode McCarthy (NY) Schaffer, Bob Spratt Velazquez to 3 years without any judicial review or for- Bryant Goodlatte McCollum Scott Stabenow Vento mal appearance in the judicial system. Burr Goodling McCrery Sensenbrenner Stark Visclosky (4) The Laogai is an integral sector of the Burton Gordon McDade Serrano Stearns Walsh Buyer Goss McDermott Sessions Stenholm Wamp export economy of the People’s Republic of Callahan Graham McGovern Shadegg Stokes Waters China and is engaged in the export to the Calvert Granger McHale Shaw Strickland Watkins United States of the goods made by forced Camp Green McHugh Shays Stump Watt (NC) labor. Campbell Greenwood McInnis Sherman Stupak Watts (OK) (5) The Government of the People’s Repub- Canady Gutierrez McIntosh Shimkus Sununu Waxman lic of China actively promotes the forced Cannon Gutknecht McIntyre Shuster Talent Weldon (FL) labor camps by employing a system of dual Cardin Hall (OH) McKeon Sisisky Tanner Weldon (PA) Skaggs Tauscher Weller names for the camps to deceive the inter- Carson Hall (TX) McNulty national community. Castle Hamilton Meehan Skeen Tauzin Wexler Chabot Hansen Meek Skelton Taylor (MS) Weygand (6) The United States Customs Service has Chambliss Harman Menendez Slaughter Taylor (NC) White taken formal administrative action banning Chenoweth Hastert Metcalf Smith (MI) Thomas Whitfield the importation of 27 different products Christensen Hastings (FL) Mica Smith (NJ) Thompson Wicker found to have been made in the Laogai. Clay Hastings (WA) Millender- Smith (OR) Thornberry Wise (7) Despite the fact that the People’s Re- Clayton Hayworth McDonald Smith (TX) Thurman Wolf public of China has entered into binding Smith, Adam Tiahrt Woolsey Clement Hefley Miller (CA) agreements with the United States (the 1992 Clyburn Hefner Miller (FL) Smith, Linda Tierney Wynn Snowbarger Torres Young (AK) Memorandum of Understanding on Prison Coble Herger Minge Labor, and the 1994 Statement of Coopera- Coburn Hill Mink Snyder Towns Young (FL) Collins Hilleary Moakley Solomon Traficant tion on the Implementation of the Memoran- Combest Hilliard Mollohan Souder Turner dum of Understanding on Prison Labor) to Condit Hinchey Moran (KS) NOES—5 allow inspections of its forced labor camps to Conyers Hinojosa Moran (VA) determine the origins of suspected Laogai Cook Hobson Morella Brown (CA) Kanjorski Pickett imports to the United States, the People’s Cooksey Hoekstra Murtha Dingell Paul Republic of China has frustrated the imple- Costello Holden Myrick NOT VOTING—12 mentation of these agreements. Cox Hooley Nadler (8) The State Department’s Human Rights Coyne Horn Neal Bunning Kilpatrick Schiff Cramer Hostettler Nethercutt Cubin Kingston Schumer Country Reports in 1995 and 1996 each stated, Crane Houghton Neumann Flake McKinney Thune ‘‘Repeated delays in arranging prison labor Crapo Hoyer Ney Gonzalez Riley Yates site visits called into question Chinese inten- Cummings Hulshof Northup b 1945 tions regarding the implementation of’’ the Cunningham Hunter Norwood two agreements referred to in paragraph (7). Danner Hutchinson Nussle So the bill was passed. (9) Concerning the ability of the United Davis (FL) Hyde Oberstar The result of the vote was announced States Customs Service to identify Com- Davis (IL) Inglis Obey munist Chinese products that originate in Davis (VA) Istook Olver as above recorded. Deal Jackson (IL) Ortiz A motion to reconsider was laid on the Laogai, Commissioner of Customs DeFazio Jackson-Lee Owens the table. George J. Weise stated in testimony before DeGette (TX) Oxley the Senate Foreign Relations Committee on Delahunt Jefferson Packard f May 22, 1997: ‘‘We simply do not have the DeLauro Jenkins Pallone PERSONAL EXPLANATION tools within our present arsenal at Customs DeLay John Pappas to gain the timely and in-depth verification Dellums Johnson (CT) Parker Mr. THUNE. Mr. Speaker, on rollcall No. that we need.’’. Deutsch Johnson (WI) Pascrell Diaz-Balart Johnson, E. B. Pastor 580, I was inadvertently detained. Had I been SEC. 3. AUTHORIZATION FOR ADDITIONAL CUS- Dickey Johnson, Sam Paxon present, I would have voted ``yes.'' TOMS AND STATE DEPARTMENT PERSONNEL TO MONITOR EXPOR- Dicks Jones Payne f Dixon Kaptur Pease TATION OF SLAVE LABOR PRODUCTS Doggett Kasich Pelosi BY THE PEOPLE’S REPUBLIC OF PROVIDING FOR CERTAIN MEAS- CHINA. Dooley Kelly Peterson (MN) URES TO INCREASE MONITORING Doolittle Kennedy (MA) Peterson (PA) There are authorized to be appropriated for Doyle Kennedy (RI) Petri OF PRODUCTS OF PEOPLE’S RE- monitoring by the United States Customs Dreier Kennelly Pickering PUBLIC OF CHINA MADE WITH Service and the Department of State of the Duncan Kildee Pitts FORCED LABOR exportation by the People’s Republic of Dunn Kim Pombo China to the United States of products made Edwards Kind (WI) Pomeroy Mr. CRANE. Mr. Speaker, pursuant with slave labor, the importation of which Ehlers King (NY) Porter to House Resolution 302, I call up the violates section 307 of the Tariff Act of 1930 Ehrlich Kleczka Portman or section 1761 of title 18, United States Emerson Klink Poshard bill (H.R. 2195) to provide for certain Engel Klug Price (NC) measures to increase monitoring of Code, $2,000,000 for fiscal year 1998 and English Knollenberg Pryce (OH) products of the People’s Republic of $2,000,000 for fiscal year 1999. Ensign Kolbe Quinn China that are made with forced labor, SEC. 4. REPORTING REQUIREMENT ON EXPOR- Eshoo Kucinich Radanovich TATION OF SLAVE LABOR PRODUCTS Etheridge LaFalce Rahall and ask for its immediate consider- BY THE PEOPLE’S REPUBLIC OF Evans LaHood Ramstad ation in the House. CHINA. Everett Lampson Rangel The Clerk read the title of the bill. (a) REPORT TO CONGRESS.—Not later than 1 Ewing Lantos Redmond The SPEAKER pro tempore (Mr. year after the date of the enactment of this Farr Largent Regula Act and annually thereafter, the Commis- HASTINGS). The bill is considered read Fattah Latham Reyes sioner of Customs and the Secretary of State Fawell LaTourette Riggs for amendment. shall each prepare and transmit to the Con- Fazio Lazio Rivers The text of H.R. 2195 is as follows: Filner Leach Rodriguez gress reports on the manufacturing and ex- Foglietta Levin Roemer H.R. 2195 portation of products made with slave labor Foley Lewis (CA) Rogan Be it enacted by the Senate and House of in the People’s Republic of China. (b) CONTENTS OF REPORT.—Each report Forbes Lewis (GA) Rogers Representatives of the United States of America Ford Lewis (KY) Rohrabacher under subsection (a) shall include informa- in Congress assembled, Fossella Linder Ros-Lehtinen tion concerning the following: Fowler Lipinski Rothman SECTION 1. SHORT TITLE. (1) The extent of the use of slave labor in Fox Livingston Roukema This Act may be cited as the ‘‘Laogai manufacturing products for exportation by Frank (MA) LoBiondo Roybal-Allard Slave Labor Products Act of 1997’’. Franks (NJ) Lofgren Royce the People’s Republic of China, as well as the Frelinghuysen Lowey Rush SEC. 2. FINDINGS. volume of exports of such slave labor prod- Frost Lucas Ryun The Congress makes the following findings: ucts by that country. Furse Luther Sabo (1) The People’s Republic of China operates (2) The progress of the United States Gov- Gallegly Maloney (CT) Salmon and maintains an extensive forced labor ernment in identifying products made with Ganske Maloney (NY) Sanchez camp system—the Laogai. slave labor in the People’s Republic of China Gejdenson Manton Sanders (2) The Laogai is made up of more than that are destined for the United States mar- Gekas Manzullo Sandlin Gephardt Markey Sanford 1,100 forced labor camps, with an estimated ket in violation of section 307 of the Tariff Gibbons Martinez Sawyer population of 6,000,000 to 8,000,000 prisoners. Act of 1930 or section 1761 of title 18, United Gilchrest Mascara Saxton (3) In one part of the Laogai system, States Code, and in stemming the importa- Gillmor Matsui Scarborough known as laojiao, or reeducation-through- tion of those products. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10081 SEC. 5. RENEGOTIATION OF THE MEMORANDUM title 18, United States Code, and is seized by law and by enhancing enforcement of OF UNDERSTANDING ON PRISON the United States Customs Service. international agreements. LABOR WITH THE PEOPLE’S REPUB- (3) The progress of the United States Cus- LIC OF CHINA. Customs already has in place teams toms Service in identifying and interdicting of special agents on our borders work- It is the sense of the Congress that, since products made with forced labor that are the People’s Republic of China has substan- destined for the United States market. ing actively to prohibit the importa- tially frustrated the purposes of the 1992 tion of forced labor products. Customs Memorandum of Understanding with the SEC. 4. RENEGOTIATING MEMORANDA OF UN- DERSTANDING ON FORCED LABOR. also has 76 special agents and 26 embas- United States on Prison Labor, the President It is the sense of the Congress that the sies and consular offices abroad, in- should immediately commence negotiations President should determine whether any cluding three attaches assigned to the to replace the current Memorandum of Un- country with which the United States has a derstanding on Prison Labor with one pro- U.S. embassy in Beijing. The investiga- memorandum of understanding with respect tions conducted by these teams have viding for effective monitoring of forced to reciprocal trade which involves goods labor in the People’s Republic of China, led to criminal proceedings, more than made with forced labor is frustrating imple- 20 detention orders, and 6 findings of without restrictions on which prison labor mentation of the memorandum. Should an camps international monitors may visit. affirmative determination be made, the prohibited forced labor importations Æ President should immediately commence ne- relating to chain hoists, tea, electric The SPEAKER pro tempore. Pursu- gotiations to replace the current memoran- fans, machine presses, zinc-coated wire, ant to House Resolution 302, the com- dum of understanding with one providing for artificial flowers, and malleable iron mittee amendment in the nature of a effective procedures for the monitoring of pipe. substitute printed in the bill is adopt- forced labor, including improved procedures H.R. 2195 will authorize additional re- ed. to request investigations of suspected prison sources for Customs to conduct these labor facilities by international monitors. The text of the committee amend- investigations and is consistent with SEC. 5. DEFINITION OF FORCED LABOR. our country’s historically strong posi- ment in the nature of a substitute is as As used in this Act, the term ‘‘forced follows: labor’’ means convict labor, forced labor, or tion on this issue. This approach is H.R. 2195 indentured labor, as such terms are used in consistent with historical U.S. trade Be it enacted by the Senate and House of Rep- section 307 of the Tariff Act of 1930. policy objectives. And on that basis, I resentatives of the United States of America in Amend the title so as to read: ‘‘A bill to urge my colleagues to support the bill, Congress assembled, provide for certain measures to increase as amended. SECTION 1. FINDINGS. monitoring of products that are made with Mr. Speaker, I reserve the balance of The Congress makes the following findings: forced labor.’’. my time. (1) The United States Customs Service has The SPEAKER pro tempore. Pursu- Mr. MATSUI. Mr. Speaker, I yield identified goods, wares, articles, and mer- ant to House Resolution 302, the gen- myself such time as I may consume. chandise mined, produced, or manufactured tleman from Illinois [Mr. CRANE] and Mr. Speaker, I rise in support of H.R. under conditions of convict labor, forced the gentleman from California [Mr. 2195, as amended and reported by the labor, and indentured labor in several coun- MATSUI] each will control 30 minutes. Committee on Ways and Means by tries. The Chair recognizes the gentleman (2) The United States Customs Service has voice vote. I was a cosponsor of the actively pursued attempts to import prod- from Illinois [Mr. CRANE]. amendment proposed by the gentleman ucts made with forced labor, resulting in sei- GENERAL LEAVE from Texas [Mr. ARCHER] to authorize zures, detention orders, fines, and criminal Mr. CRANE. Mr. Speaker, I ask unan- an additional appropriation of $2 mil- prosecutions. imous consent that all Members have 5 lion in fiscal year 1999 for the Customs (3) The United States Customs Service has legislative days in which to revise and Service to monitor importation of taken 21 formal administrative actions in extend their remarks and to include ex- products made with forced, indentured, the form of detention orders against dif- traneous material on H.R. 2195. or convict labor. ferent products destined for the United The bill, as amended, also requires States market, found to have been made The SPEAKER pro tempore. Is there with forced labor, including products from objection to the request of the gen- Customs to report to Congress within 1 the People’s Republic of China. tleman from Illinois? year on products made with forced (4) The United States Customs Service does There was no objection. labor destined for the U.S. market and not currently have the tools to obtain the Mr. CRANE. Mr. Speaker, I yield my- on the efforts by Customs to prevent timely and in-depth verification necessary to self such time as I may consume. their importation. Importation of prod- identify and interdict products made with Mr. Speaker, I rise in support of H.R. ucts made by convict, forced, or inden- forced labor that are destined for the United 2195, a bill to authorize $2 million of tured labor in any country is prohib- States market. appropriations for fiscal year 1999 for ited under trade law in effect since SEC. 2. AUTHORIZATION FOR ADDITIONAL CUS- the U.S. Customs Service to increase TOMS PERSONNEL TO MONITOR THE 1980. The issue is not whether the Unit- IMPORTATION OF PRODUCTS MADE the monitoring and interdiction of ed States permits importation of prod- WITH FORCED LABOR. products made with forced labor. ucts made with forced labor. Customs There are authorized to be appropriated for The funds authorized by H.R. 2195 has actively pursued and taken actions monitoring by the United States Customs will allow the Customs Service to en- against attempted importation of prod- Service of the importation into the United force two important provisions in the ucts made with forced labor, including States of products made with forced labor, law regarding forced labor products. the importation of which violates section 307 products from China. However, identi- of the Tariff Act of 1930 or section 1761 of The Tariff Act of 1930 prohibits the im- fication, verification, and interdiction title 18, United States Code, $2,000,000 for fis- portation of goods, wares, articles, and of products made with forced labor is cal year 1999. merchandise which are produced, not an easy task. SEC. 3. REPORTING REQUIREMENT ON FORCED mined, or manufactured with the use of H.R. 2195, as amended, addresses con- LABOR PRODUCTS DESTINED FOR forced, convict, or indentured labor. cerns that Customs has insufficient re- THE UNITED STATES MARKET. Title 18 provides criminal penalties for sources to enforce the import prohibi- (a) REPORT TO CONGRESS.—Not later than 1 those who willfully violate these prohi- tion adequately. The bill treats this year after the date of the enactment of this bitions. problem in a balanced, generic way by Act, the Commissioner of Customs shall pre- pare and transmit to the Congress a report It has been long-standing U.S. policy applying the additional resources on products made with forced labor that are to prohibit the importation of mer- through enforcement of existing laws destined for the United States market. chandise made under conditions of against imports made by forced labor (b) CONTENTS OF REPORT.—The report forced labor. To show that there is no wherever they may originate rather under subsection (a) shall include informa- doubt about our resolve to enforce this than targeting one country as in the tion concerning the following: prohibition, H.R. 2195, as amended, bill as introduced. (1) The extent of the use of forced labor in would reemphasize U.S. policy by au- Finally, this bill, as amended, ex- manufacturing products destined for the thorizing additional resources for the presses the sense of the Congress that United States market. (2) The volume of products made with U.S. Customs Service to identify and the President should determine wheth- forced labor, destined for the United States interdict products made with forced er any country with which we have a market, that is in violation of section 307 of labor by providing a new mechanism memorandum of understanding regard- the Tariff Act of 1930 or section 1761 of the for monitoring compliance with the ing trade involving goods made with H10082 CONGRESSIONAL RECORD — HOUSE November 5, 1997 forced labor is frustrating the imple- California [Mr. MATSUI] for yielding me Chinese, should not be a practice by mentation of that memorandum of un- the time. nations that surprises this Congress. derstanding. If that is the case, the Mr. Speaker, I rise in support of H.R. But it should be shocking. We have President should negotiate a new MOU 2195, legislation to provide for the in- seen it throughout history, signs on that provides effective monitoring pro- creased monitoring of products made the front of Nazi prison camps that, cedures. with forced labor. The Committee on when translated read ‘‘labor makes you H.R. 2195, as amended, is very worth- Ways and Means has made several im- free.’’ And now Chinese slogans in their while, Mr. Speaker, and it addresses a provements to the bill. This legislation camps read ‘‘labor makes a new life.’’ very serious problem. I urge its pas- provides certain measures to increase The same gulags that Stalin was so sage. the ability of the U.S. Customs Service proud of inspired Chairman Mao to Mr. Speaker, I reserve the balance of to identify, monitor, and interdict launch the oppression of generations of my time. products made with forced labor that innocent Chinese citizens, through a Mr. CRANE. Mr. Speaker, I yield 2 are headed for the United States mar- system of what we know now to be 1,100 minutes to the gentleman from New ket. It authorizes $2 million of appro- labor camps, slave labor camps. As the York [Mr. GILMAN]. priations for fiscal year 1999 for Cus- world at one time turned its back on (Mr. GILMAN asked and was given toms to monitor and interdict products the victims of the Holocaust, so have permission to revise and extend his re- made with forced labor. they looked away from the prisoners of marks.) This legislation also requires Cus- Mr. GILMAN. Mr. Speaker, I am conscience, political dissidents, and re- toms to report within 1 year after the pleased to rise in support of this impor- ligious believers in China. They are date of enactment on the extent of the tant measure introduced by our col- subjected to routine brainwashing, tor- use of forced labor in products destined league the gentleman from New Jersey ture, and are forced to work for noth- for the U.S., the volume of products, ing in factories by the communist [Mr. SMITH], as modified and reported out of the Committee on Ways and and the progress made by Customs in elite. Means. identifying these products. b 2000 Also, this legislation includes a sense For the past half century, the import Look around at the rubber-soled of convict made goods has been banned of Congress that the President should determine whether any country with shoes that we buy, the boots, the kitch- under our laws, yet products made in enware, toys and sporting goods in this China’s vast network of slave labor whom the United States has a memo- randum of understanding on forced country. These are products Americans camps, the infamous Laogai, continue use every day, and they are produced in to flow into our country. This measure labor is frustrating implementation of the memorandum of understanding. If the Chinese gulags by slave laborers. authorizes $2 million in additional If it were not for a great man named funds for Customs Service personnel to the President determines that the Harry Wu, who knows how long this monitor the import of slave labor prod- memorandum of understanding is not cruel injustice would have gone unex- ucts from these camps and strengthen being implemented, it is the sense of posed. Mr. Wu knows firsthand what it our monitoring procedures for inter- Congress that the President should re- is like to be a prisoner in these gulags. national visits to these camps. negotiate a new memorandum of un- Laogai survivor, Harry Wu, has esti- derstanding. He spent 19 years in the system and has mated that some 50 million Chinese This legislation addresses all prison devoted his life to exposing the slave men and women have passed through labor in China. The United States labor camps. these camps, of whom some 15 million should not allow goods made by prison In Mr. Wu’s book Troublemaker, he are thought to have perished. Today, labor to be available in the United gives us a glimpse of his life during the between 6 to 8 million people are cap- States market. This legislation also darkest days: tive in 1,100 camps of the Laogai, would provide Customs with the re- ‘‘I knew things were bad when they forced to work under degrading and in- sources to detect and interdict prison first transferred me to Camp 585, re- human conditions. goods. The United States should con- served for the most unhealthy inmates. Mr. Speaker, according to Mr. Wu, tinue to be a leader on human rights is- The unmarked burying field of 586 was this slave labor system operates some sues. And by adopting this legislation, adjacent so they would not have to 140 export enterprises selling to over 70 we are sending a strong message that carry us far when we died. When pris- nations, including our own Nation. products made by forced labor are not oners at 585 grew too weak to go out to These camps produce a wide range of acceptable for sale in the United the fields and work, they would lie on key commodities as well as a huge States. the floor, a pail on one side for food, a array of consumers goods, including I realize the original focus of this bill pail on the other side for human waste. toys, flowers, and yes, even Christmas and other bills that we will be debating The cook would come by with a large lights. today remain on China. However, it is pail of something resembling soup and Despite several binding agreements important to let all countries know would dole it out with a ladle, being entered into with China in 1992 and that we will not tolerate prison labor. careful not to spill a drop.’’ 1994, international monitors have been We should not just enforce this stand- Mr. Speaker, as a member of the denied access to these camps and their ard for China. House Subcommittee on International exports have been disguised using false I urge support for this bill in order to Operations Human Rights, I believe names and invoices. In testimony be- eliminate products made by forced that the United States should link fore the Senate Foreign Relations labor that are imported into the United trade and economic cooperation with Committee on May 22, 1997, Customs States. human rights. The United States is the Commissioner George Weise stated Mr. CRANE. Mr. Speaker, I yield 5 world’s preeminent superpower, argu- that, ‘‘We simply do not have the tools minutes to our distinguished colleague ably the only Nation on Earth with within our present arsenal of Customs the gentleman from Indiana [Mr. BUR- both the economic might and the to gain the timely and in-depth ver- TON]. moral legitimacy to make the observ- ification that we need of these camps.’’ Mr. BURTON of Indiana. Mr. Speak- ance of human rights a pillar of its for- Accordingly, I urge my colleagues to er, I thank the gentleman from Illinois eign policy. The unfortunate peoples of support this measure and give the Cus- [Mr. CRANE] for yielding me the time. the world whose basic human rights toms Service the tools and resources it Mr. Speaker, I want to start off by are suppressed either by tyrants or needs to police and monitor the im- congratulating my good friend the gen- failed economic experiments turn to ports of goods for this Chinese gulag tleman from New Jersey [Mr. SMITH] the United States for hope and not and slave labor camps. for all of his efforts in the area of cheap imports. From China to India, Mr. MATSUI. Mr. Speaker, I yield 3 human rights. He is one of the finest the people who suffer under such re- minutes to the gentleman from Massa- Members we have in this body, and he gimes understand that if America joins chusetts [Mr. NEAL]. really cares about his fellow man. their struggle by sacrificing short-term Mr. NEAL of Massachusetts. Mr. Mr. Speaker, Laogai, or ‘‘reform economic gain for long-term justice Speaker, I thank the gentleman from through labor,’’ as it translates from and freedom, these regimes will die. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10083 This administration chose again this It did not save their lives, it did not have this year to address this horrible year to grant China MFN trading sta- make them any better, but it seemed trade inequity and horrible unfairness. tus and would rather, quote, engage to lessen their pain. We all beat our brains out to get here. China, believing that human rights fol- That is kind of what we are doing to- I do not think the people on the Com- lows trade. Every year since 1980, when night. The world’s greatest Nation is mittee on Ways and Means should have President Carter first extended MFN to doing business with the world’s great- a monopoly on deciding trade issues. China, his supporters have been saying est totalitarian regime. That totali- As long as we say to them that only the same thing. tarian regime has a $40 billion trade those things that you think are right Mr. Speaker, it has failed. A Clinton surplus with our Nation. Our Nation, will come to this floor, then we will administration official has even con- because we gave them most-favored-na- continue to be given limited opportuni- fessed recently that, quote, frankly, on tion status, allows their goods, many ties to adjust the gross inequities in the human rights front, the situation of which are made with the slave labor America’s trade laws. has deteriorated. They are rounding up described by the previous speakers, to Members will have that chance to- more dissidents and harassing them come into our Nation either totally night. I hope for once we will stand up more. tariff-free or at a 2 percent tariff. One for the world’s greatest Nation, for the Add to this the recent revelation by of the places they compete with is a voice of democracy and against this Harry Wu and the ABC newsmagazine glove factory in south Mississippi. voice of totalitarianism. PrimeTime Live on the harvest and That is not fair. In turn, when we try Mr. HUNTER. Mr. Speaker, will the sale of human organs from executed to sell products in their Nation, they gentleman yield? prisoners, forced abortions and perse- either do not allow them in, or they Mr. TAYLOR of Mississippi. I yield cution of religious believers, and we charge anywhere from a 20 to 40 per- to the gentleman from California. must ask ourselves how could anyone cent tariff on American goods. That is morally conduct business with a part- not fair. Mr. HUNTER. Mr. Speaker, I thank ner like that. All the things we are doing tonight the gentleman for yielding. And if the morality does not strike are very much like those SweeTarts. What I see in his bill is essentially you, what about China’s sale of nuclear They do not save the persons we are what I offered, I think, with respect to material to Iran or the purchase of trying to save and in reality do not Japan back in 1982, which is a two-way American-made supercomputers which even make them feel better. It just street bill, that we let the other side could design nuclear warheads for mis- makes them think that they feel bet- control the level of tariffs, and if they siles capable of reaching the United ter. want to raise the wall, they raise it; if States, or possible attempts to influ- Mr. Speaker, I intend to support the they want to lower it, they lower it. So ence our 1996 Presidential election? bill of the gentleman from California they are motivated to be free traders Some estimate our trade deficit with [Mr. COX] because at least it does make or to be open traders with the United China to be about $60 billion on an an- us feel a little bit better, and I intend States and develop a two-way street nual basis. I would submit that is due to offer at the proper time a motion to with a Nation that enjoys a $30 billion to China’s slave labor camps. It is dif- recommit to include portions of a bill trade surplus over the United States ficult to compete against cheaper prod- that I have introduced, H.R. 2814, which and that rather arrogantly insists on ucts produced by slaves of the Chinese would on a quarterly basis require our their 30 percent barriers while we pull dictatorship so that these goods we im- Secretary of the Treasury to review our barriers down to zero. I support the port from China become a threat to the what the People’s Republic of China is gentleman’s initiative. free and fair trade of our own country. charging Americans who seek to do Mr. TAYLOR of Mississippi. I want This administration has chosen to business in China as far as tariffs, and to thank the chairman of the Sub- stand up to China only on one issue in on a quarterly basis change that committee on Military Procurement of the past 3 years, intellectual property amount so that we charge them what the Committee on National Security, rights. When the Chinese were faced they charge us. someone who is more aware than most with trading sanctions over this issue, If Members truly believe in free of the threat that the Chinese pose to they backed down. If this type of mus- trade, like some members of both par- our Nation, of the threatening remarks cle from the administration is justified ties espouse, then there is only one they have made about their missiles for the music industry, then it is justi- way to get the Chinese attention, and being able to land in our country, and fied for persecuted Christians, political that is to say we will do unto others as all we are asking is for some sense of dissidents, murdered infants and nu- you do unto us, because the present sit- fairness in America’s trade laws. clear proliferation. uation of letting them have a $40 bil- Mr. CRANE. Mr. Speaker, I yield 5 The President’s policy is not just one lion trade surplus with our Nation, un- minutes to the gentleman from New of engagement, it is a ‘‘see no evil’’ limited access to our markets, unlim- Jersey [Mr. SMITH]. strategy. Mr. Speaker, it is time to put ited access to our enemies, and let me (Mr. SMITH of New Jersey asked and away the carrots and break out the remind the American people that the was given permission to revise and ex- sticks. Silkworm missile that came within 100 tend his remarks.) Mr. MATSUI. Mr. Speaker, I yield 6 yards of hitting one of our battleships minutes to the gentleman from Mis- in the Gulf War was made in China, the Mr. SMITH of New Jersey. Mr. sissippi [Mr. TAYLOR]. only way we are ever going to get their Speaker, I thank the gentleman for Mr. TAYLOR of Mississippi. Mr. attention is to start hitting them in yielding me this time. Speaker, earlier today I made an anal- the pocketbook, where it will make a Mr. Speaker, H.R. 2195, which has ogy between the measures that are difference. now 27 cosponsors from both sides of going on tonight dealing with the Peo- Mr. Speaker, I am not given a whole the aisle, represents a modest but im- ple’s Republic of China and a chapter of lot of time to talk about this. I am portant first step toward enforcing al- a book entitled 365 Days, written by sorry to say that many of my col- ready existing U.S. law regarding Dr. Glasser, who was a surgeon in a leagues for one reason or another are slave-made products. First it author- burn ward dealing with Vietnam veter- not on the floor. They are probably izes $2 million in fiscal year 1999 for ad- ans. In one of those chapters he refers being moved to say, well, that is not ditional monitoring by the United to the medics of Vietnam who, on their germane to the bill, but guess what. States Customs Service for products own, discovered that for those soldiers One of the ways you get on the Com- made with slave labor. Second, it re- who were so horribly wounded that mittee on Ways and Means is you sign quires the Commissioner of Customs to they were not going to live, and there some sort of a blood oath to be a free report to Congress on the manufacture was not anything that the medics trader. It means you do not believe in and export of products made with slave could do for them, they started giving tariffs. It means that other people can labor. Finally, it expresses the sense of them SweeTarts. They told them it abuse us as much as they want to. Congress that the President should de- was for the pain. The amazing thing This is the only opportunity the 435 termine whether China is frustrating was that it seemed to lessen their pain. Members of this House are going to implementation of the memorandum of H10084 CONGRESSIONAL RECORD — HOUSE November 5, 1997 understanding, and if the answer is af- The gentleman from Virginia [Mr. 17. 07–15–92—Drilling Machines—(Sichuan firmative, then he should begin nego- WOLF] and I have been in gulags. We Zi Gong Machine Works). tiations for a new MOU with effective were in a Beijing prison camp where we 18. 07–17–92—Sulfuric (Sulphuric) Acid— (Dawei Chemical Factory). monitoring procedures. saw jelly shoes and socks being made 19. 08–03–92—Electric Fans & Zinc-Coated I can say parenthetically, that can- for export. Yes, the Chinese authorities Wire—(Sichuan Xinsheng Laodong Tool not start a moment too soon, because I shut down that one, but for every one Works). have been watching this as chairman of that is shut down, there are another 20. 08–14–92—Asbestos—(Sichuan Hsinkang the Subcommittee on International Op- thousand plus that are operating and Asbestos Mine). erations and Human Rights for a num- littering the countryside of China 21. 07–08–93—Hoists—(Hangzhou Wulin Ma- ber of years, and we know that despite where these things are made. chine Works). 22. 08–06–93—Hoists—(Wuyi Machine some action that has been taken, the b 2015 MOU and its follow-on document was Works). 23. 09–01–93—Surgical Gloves, Condoms, flawed. We saw 40 Tiananmen Square activ- ists, men and women, these were men Rain Coats, Rubber Boots—(Shenyang Mr. Speaker, the bill is directed, as Xinsheng Rubber Factory). we know, primarily toward China. This in this case, who put their lives on the 24. 09–03–93—Rubber Vulcanizing Accelera- is not because we are unfairly singling line for democracy, who were slaving tors—(Shenyang Xinsheng Chemical Works). out China, but because China is far and away for these products that were 25. 12–24–94—Artificial Flowers— away the biggest source of slave-made going to be sent overseas to the United (Guangdong No. 1 Laojiao Camp). goods. In the words of George Weise, States. 26. 04–27–95—Tea—(Nanhu Laogai Camp- the Commissioner of the U.S. Customs Let me also point out, Mr. Speaker, Nanhu Tree Farm). 27. 10–06–95—Malleable Iron Products— Service, ‘‘China is currently by far the that the lack of vigorous enforcement of U.S. laws against slave-made goods (Tianjin Malleable Iron Plant). country most frequently associated 28. 03–06–96—Iron Pipe Fitting—(Tianjin with the export of prison labor-made does not merely support repression Tongbao Fitting Company). goods to the United States.’’ within China, it also hurts American As a matter of fact, in the first 60 manufacturers. HEARING TESTIMONY ON CHINESE PRISON years of the existence of section 307 of For example, at a May 22, 1997, hear- SYSTEM the Tariff Act of 1930 as amended, ing of my subcommittee, we received STATEMENT OF TANG BOIQIAO, FORMER STU- which provides U.S. Customs with its testimony from a man by the name of DENT LEADER OF 1989 DEMOCRACY MOVEMENT primary authority concerning the im- Peter Levy, an American manufacturer Mr. TANG. My name is Tang Boiqiao and I portation of convict or forced labor, of office supplies. Mr. Levy, who was am a former student of Hunan Teachers’ Col- the United States took action twice curious about how one of his competi- lege. In July 1989, I was arrested by the Com- against products produced in a Soviet tors was able to sell certain products munists because of my organizing and par- ticipating in the Hunan student movement. I gulag and in a Mexican prison. Since at such low prices, launched his own investigation. It led him to a prison was held until July 1990 before finally being September 1991, however, the U.S. Cus- sentenced to 3 years’ detention. My crime toms Service has banned nearly 2 dozen compound in Nanjing, China, where his was called counterrevolutionary propa- Chinese products. These just represent competitor’s products were being as- gandizing and incitement. the tip of the iceberg. For the RECORD sembled by prisoners at a Chinese In October of that year, I was transferred I will submit those couple of dozen at gulag in Laogai, and I understand be- to the Hunan Province Longxi Prison for re- the appropriate time, Mr. Speaker. cause of what Mr. Levy did, the United form through labor. In January 1991, I was Let me just also point out, Mr. States Customs Service has now taken unexpectedly released from prison. Speaker, we have had a number of that case and is investigating that case After my release, I was again arrested be- for, hopefully, some prompt action. cause of my continued involvement in the hearings in the Subcommittee on popular movements and human rights activi- International Operations and Human This legislation is modest, I hope ev- ties. Following the summer of 1991, I fled Rights. As a matter of fact, back in eryone can support it, and I thank the China. In April 1992, I entered the United 1995, April 3, we had the first hearing gentleman from California [Mr. MAT- States and sought political asylum. ever on survivors of the Laogai. We SUI] and my good friend from Illinois My reason for coming here today is to heard from Harry Wu, Catherine Ho; we [Mr. CRANE] for their support as well. share with you my experiences while in the heard from Tang Boiqiao, who was one CHINESE CONVICT LABOR ISSUANCES AS OF Laogai. MAY 31, 1996 I was first arrested in July 1969 in of the protesters at Tiananmen Square, Guangdong Province, after which I was held DETENTION ORDERS and they describe in absolutely rivet- in three different detention centers where I ing and nauseating detail what actu- Date, products and producers: was forced to labor with my fellow prisoners. ally goes on day in and day out in the 1. 10–03–91—Wrenches—(Shanghai Laodong While at Guangdong No. 1 Detention Center, Laogai. It is horrific. Machine Works). I made toys which had the words ‘‘Made in They talked about using cattle prods. 2. 10–03–91—Steel Pipe—(Shanghai Laodong China’’ in English written on them. I was al- Steel Pipe Works). lowed to eat only twice a day. As a matter of fact, the Tibetan monk 3. 10–25–91—Hand Tools—(Shanghai Next, I was transferred to Changsha in who testified before our committee, Laodong Machine Works). Hunan and spent more than a year at the Palden Gyatso, could not get through 4. 10–29–91—Socks—(Beijing Qinghe Knit- Changsha No. 1 Detention Center. During Rayburn security when he came in ting Mill). Cancelled 12–13–93. 5. 11–06–91—Planing Machines—(Xiangyang this time I suffered through the darkest and with a cattle prod, and then he told us most hopeless existence. For more than 4 what they do with the cattle prod. We Machine Tool Works). 6. 11–14–91—Diesel Engines—(Yunnan months straight, I was questioned about my had to go down and escort him Jinma Diesel Engine General Works). case an average 10 hours a day in what the through. He said, this is commonplace. 7. 12–02–91—Machine Presses—(Xuzhou Communists call exhaustive tactics. This His teeth are ruined. The genitals often Forging and Pressing Machinery Plant). Laogai forced its prisoners to produce match get inflicted with this terrible and hid- 8. 01–07–92—Diesel Engines & Textile Ma- boxes. There were no labor rewards but every eous device, and they do that on chines—(Dezhou Shengjian Machine Works). month the cellmates, which had the highest 9. 02–25–92—Galvanized Pipes—(Shandong production numbers, were given one cheap women and on men. cigarette a day. The police or officials forced Catherine Ho talked about as a Laiyang Heavy Machine Works). 10. 02–25–92—Tea—(Guangdong Red Star the prisoners to work day and night so that Catholic how she had been mistreated, Tea Farm). Cancelled 09–30–94. they could report increased production out- and to read the words are to make you 11. 05–22–92—Grapes—(Beijing Qinghe put and receive cash incentives. We would sick. That this goes on day in and day Farm). Cancelled 01–07–94. work for at least 12 hours per day. The long- out, and they make products that do 12. 05–22–92—Sheepskin & Leather— est day was one when we worked 231⁄2 hours end up on our shelves. (Qinghai Hide & Garment Factory). with a half-hour food break. There are those who may disagree, 13. 06–24–92—Hand Tools—(amends #1 and Because I would refuse to work, the public who think this is hyperbole. Look at #2). security police would often arrange for the 14. 06–26–92—Cast Iron Items—(Wang Tsang other prisoners to abuse and beat me. One the list, and the list will grow if we de- Coal & Iron Works). day I was beaten three different times by mand enhanced enforcement. This leg- 15. 06–26–92—Tea—(Miao Chi Tea Farm). seven or eight young prisoners, two of which islation is just a modest step in de- 16. 07–15–92—Auto Parts—(Sichuan Yaan were convicted murderers. The first time, be- manding some additional enforcement. Auto Parts Works). cause I was unwilling to be forced to labor, November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10085 they beat me until I bled from the eyes, ears, Thank you very much. my faith. I could not give up my faith, which nose, and mouth. The second time, because I Mr. SMITH. I want to thank you for your is such a precious gift that many Christians resisted when they tried to force me to kneel very eloquent testimony and for bringing the were willing to die for it. down, they used anything they could find in horrors, however succinctly you described At first they sentenced me to 7 years in the the cell to beat me, including a wooden them, to the attention of this subcommittee. Laogai Prison in the labor camp as a stool, heavy wooden sticks and metal cups I know that many of the members will be counterrevolutionary. I was not allowed and bowls. The last time they beat me while reading this transcript and will be reading legal representation. I did not even have a I could not move and lay on the floor your description of what you went through trial. When they found out that I had still hunched over. personally and what others have gone not changed my mind after my 7 years, they At this, the public security police were through with a great deal of empathy and would not let me go. They kept me in the still not satisfied, so that evening they held the sense of horror. And I think we lose that Laogai camp for 21 years. a struggle session and ordered every prisoner sometimes in Congress when we are so far re- The Chinese Communists cannot tolerate in the Laogai to viciously beat me. That moved from it and we make policy in some- religion, especially the Christian religion. night I developed a fever of 104 degrees, what of a vacuum and, again, to know what They have a hatred for everything which in- which persisted for more than a week. I was we are a part of and complicit in when we volves believing any god above or beyond unable to even sit upright. are dealing with the Chinese economic sys- human kind. To this day, they are still per- While there were many methods used in tem and products manufactured in Laogai secuting and imprisoning religious believers. torturing people at this Laogai, the most like what you made could be well finding our I would like to now give you some exam- often used tools were the electric police ways onto to our own shores, makes us— ples of the systematic abuse and the persecu- baton and shackles. There were more than 10 should make us act more responsibly and to tion of the Laogai camps. These Laogai kinds of shackles, including thumb shackles, bend over backwards not to be complicit in camps are in no way like the prisons we so-called earth shackles, all kind of wrist that kind of horror. know of in this country. No way. Words are shackles, chain shackles, chain-link shack- So I thank you. not enough to convey the horrible day-to- les, door frame shackles, heavy shackles and What I thought we might do in the sub- day realities of the prisoners in the Laogai. others. The most simple method was to con- committee is ask all of our witnesses to tes- Physically we were always hungry, tired, duct a political study class where the pris- tify first and then to ask members of the and filthy. The women were forced to do oners needed to attend for long periods of subcommittee to pose questions at that heavy labor, like plowing the desert, raising time while shackled. I personally experi- time. cattle, or running a tea farm. The physical enced electric shocks and many kinds of I would like to call to the witness chair torture of our body was so extreme that shackles. Catherine Ho. Mrs. Ho is a Catholic who was many women’s menstruation ceased in many The Laogai prisons used different types of accused of counterrevolutionary crimes. She of the women in the Laogai camp. This put abuse and control than those of the deten- spent 21 years in the Chinese Gulag system. great strain on both a women’s body and her tion centers. After I was transferred to the And I would ask you to proceed however mind. There were never any medical treat- prison, when I was first assigned to a prison you may wish. Your full statement will be ments of this or other sicknesses. brigade, we were shown the three unforget- made a part of the record. Despite these exhaustive and grueling con- ditions, we were forced to produce high-level table phrases that were written on the wall STATEMENT OF CATHERINE HO, CATHOLIC NUN of the prison entrance. ‘‘Where are you? products. For example, I was in a Laogai What are you? What are you to do here?’’ Ms. HO. My name is Catherine Ho. camp tea farm for about 10 years. This is the Later in the daily political study classes, One of the goals of the Laogai camps is to Laogai tea farm. we needed to follow these questions with the break the human spirit through torture of The women prisoners were forced to plant responses, ‘‘This is a prison. I am a criminal. the body. But even worse than the bodily the trees, take care of the plants, and then I am here to receive reform through labor.’’ abuses is the unceasing assault of the pris- process the tea leaves into red or green tea. We also had to sing three songs at the begin- oner’s thoughts and individual will. This is I spent another 4 years weaving silk and ning of every political study class. The songs especially true of the suffering endured by cloth in Laogai factory. On the surface, it were ‘‘Socialism is Good,’’ ‘‘Without the the millions of women condemned to the was a textile factory in Hangzhou, but the Communist Party There Would be no New Laogai. workers were all women prisoners doing China’’ and ‘‘Emulate Lei Feng.’’ Lei Feng I was born into a well-educated family in forced labor. In the factory, there were two was a 1950’s Chinese Communist martyr. Shanghai. My good parents sent me to an ex- constant pressures upon us. First was the The kind of billboard you see above the cellent Catholic high school. There I became physical fatigue. I was forced to work very prison there has these three slogans that the a Catholic. I studied very hard and should hard for 14 hours a day. I had to fight ex- prisoners see when they enter the prison, have had a bright future. Instead, I was ar- haustion just to keep from falling into the ‘‘Where are you? What are you? And what rested and imprisoned by the Communist machines. Second was the constant super- are you doing here?’’ And the other sign government before I was even 18 years old. I vision. Since we were told that the products there says, has the slogans, ‘‘Labor produc- was arrested on September 8, 1955, as was our we made were for export to foreign coun- tion is the way, reform is the main goal.’’ bishop in Shanghai, Cardinal Kung. Kung is tries, they watched our every move to be The words ‘‘Socialism is good’’ begins ‘‘So- now in the United States receiving medical sure we made no mistakes. If there were mis- cialism is good. Socialism is good. Everyone care. takes or someone did not appear to be work- in a socialist society is improved.’’ The Between 1953 and 1955, the church-run ing hard, we were severely punished. They lyrics of ‘‘Without the Communist Party, schools and hospitals in Shanghai were used ankle fetters, handcuffs, solitary con- there would be no new China’’ are ‘‘Without taken over by the Communists. The church’s finement, and other means to punish us. the Communist Party, There Would be no charitable institutions were simply closed. Today I often wonder if the tea I drink or New China, the Communist Party is united The foreign missionaries had already been the silk I wear comes from Laogai camps and for the people. The Communist Party is unit- expelled as imperialists. The Chinese priests is made by all those poor Laogai slaves still ed to save China.’’ and the bishops were all targets of the Com- suffering in China. The meaning of the last song is that we munists and were either killed or arrested Daily we were assaulted mentally. We were should all be like the Communist hero Lei one after another. continually brainwashed. We were not al- Feng. That is, ‘‘Loyal to the revolution, Most of the Christians were forced to go lowed to say our prayers or to read bibles. I loyal to the party, standing in the field erect through brainwashing. They faced losing remember clearly my first day in the deten- and unwavering, Communist thinking emits their jobs or educational opportunities. And tion center. I kneeled down on the muddy knowledge.’’ I realized that this was how they also faced being sent to the Laogai ground, bowed my head, and begged for the they would force us to reform our thinking, camps or prisons to suffer because of their Lord to give me the strength. The warden so I refused to sing the three songs. faith. Religious people were continuously immediately scolded me, ‘‘Who told you to The police used many methods to try to in- persecuted by Communists. kneel down? Even at the door of death, you timidate and coerce me into cooperating, We did not oppose the government. We keep up your superstitions. This is a and in the end, I was sent to the prison of only wanted to practice our religion but the counterrevolutionary activity.’’ prisons, solitary confinement. Its length and Communists said it was a crime against In the Laogai, we were not allowed to hear height are barely enough to hold a man, and China. The only reason I was put in jail was and read anything but the Communist propa- it has solid walls with only a tiny slit in the because I was an active Christian. I was a ganda. We had to spend 2 hours everyday door. It very easily makes men think like member of the Legion of Mary, which is a de- reading Mao’s book and reciting the prison animals in a cage. vout missionary organization. And I did mis- regulations. I remember one 60-year-old sis- These are only some of the stories of my sionary works. I refused to renounce our ter who made a set of small rosary beads out time in the Laogai, yet all of the mistreat- church and did not want to be a part of the of thread so it will not be discovered and ment and abuse I suffered in the Laogai is Communist-controlled church. confiscated by the guards. just a drop of water in a great river. When Because of my faith, they put me in jail. The continuous brainwashing helped de- you think of all the abuses of the millions of They isolated me from the outside world. stroy all human love and was a denial of all Chinese citizens still condemned in the They tried to confuse me with all their prop- basic human rights. Laogai, my story is just the tip of the ice- aganda. But I knew they told lies. I could not Spiritually, it was a constant struggle. We berg. go against my conscience. I could not deny faced constant despair and always heard the H10086 CONGRESSIONAL RECORD — HOUSE November 5, 1997 discouraging and threatening comments of committee colleagues and myself to—we will moving and I know every member of this the authorities. A prisoner had to confess pose questions to our fine witnesses. subcommittee will take and remember your her crime everyday, which meant scolding I would like to ask Father Cai if he would testimony. oneself and accusing oneself of being guilty come to the witness table at this time. The Chinese Communists obviously do not of the greatest of crimes against the people Father Cai is a Catholic priest. He was ac- discriminate when they repress, and all peo- and the government. cused of counterrevolutionary crimes and for ple of faith who follow the lead of God as Every prisoner was degraded. They mini- that spent 35 years in the Chinese Laogai. A they believe it is leading, are equally re- mized their own value of being human. They remarkable man who has persevered and who pressed. And to give a unique perspective as were separated from their families and soci- has had perseverance under such extreme sit- it relates to the suffering of the people of ety. They were tortured in a dark hell that uation, and who is here to give us an account Tibet, we are very pleased to welcome had no foreseeable end. They fought the de- of what went on. Palden Gyatso, a Tibetan monk, who spent, spair and hopelessness of thinking that they And I would ask, Father, if you would pro- like Father, 32 years of his life in the Chi- were to spend the rest of their lives as slaves ceed as you would like. Your full statement nese Laogai, and will give the insights that in the Laogai. will be made a part of the record. he got from that and will recount and give One woman refused to work on Sundays. STATEMENT OF CAI ZHONGXIAN, CATHOLIC witness to the suffering and cruelty that was She would say prayers instead of singing rev- PRIEST imposed upon him. olutionary songs in front of Mao’s portrait. Please proceed. Mr. CAI. My testimony of my Laogai is One day she was dragged out to the field that of a labor-camp life. My name is Cai STATEMENT OF PALDEN GYATSO, TIBETAN MONK where we were working and beaten to death Zhongxian. I am a Catholic priest of the So- Mr. GYATSO. My name is Palden Gyatso. in front of all of us. ciety of Jesus. Mr. KELSANG. I am Kelsang, who will be I said the Communists’ aim is to torture the translator for him today. the body and break the human spirit in I was ordained in 1940. I was arrested and charged as a counterrevolutionary in 1953 be- Mr. GYATSO. I have longed for this moment every possible way and at every possible op- most of the last 36 years and it is like a portunity. When the warden told me my be- cause of my refusal to cooperate with the Communist authority and denounce the dream come true, and I would like to thank loved sister had died, he simply said, ‘‘The the chairman and the other members of the People’s Government acted humanely. It is Roman Catholic Church. I was unexpectedly released without expla- committee for giving me this opportunity to all over now. You should not cry because be here today. And consider it not only as an that is against the rules. And it would have nation in 1956. It turned out that the Com- munist hoped that the leniency showed to honor but also a responsibility to inform the a bad effect on the feelings of the others U.S. Congress about the abuses that Tibetans about thought reform.’’ They did not let us me would convince me to collaborate with the Party to persuade other Catholics to be- are suffering today in Tibet. laugh. They even did not let us cry. I have been in prison for 24 years and for 8 come members of the officially sanctioned They succeeded to the point where to years I was in a Chinese labor camp and dur- Patriotic Catholic Church. This Patriotic many it looked like there was no future, no ing my days in prison, the Chinese never fed Catholic Church is nothing more than a hope. The prisoners in the Laogai camp were us enough and we were forced to rummage Communist puppet organization. When I re- always in a deep depression. I myself prayed through the food that was meant for the fused to cooperate, I was once again ar- to God to let me die. I wanted to die more pigs. And we were also driven to eat things rested. So I was detained twice for a total of than I wanted to live because the cir- like leather, bones, and grass, and it could be 7 years at the Shanghai Detention Center cumstances were too horrible. Even if you any bones, human as well as animal. did not want to continue living under this without charge or trial until I was finally So since food was not enough, we were condition, they would not let you die. There sentenced to a 15-year term in 1960. forced to eat leather that we wore, and we was a constant suicide watch. I was then sent to a Laogai camp in also had to resort to eating things like God sustained us nevertheless. My faith Jiangxi Province, which served as a brick worms and, as I said, grasses. preserved me. God’s grace helped me live factory. A lot of people avoided dying of And a lot of people died due to starvation, through this nightmarish journey. Finally starvation mostly because they supple- and I was around 30 years old then, and some my prayers were answered. After my parents mented the rationed food by eating frogs, of the other things that went on during my had written many, many letters to the Gov- snakes, and rats. stay in prison, along with not getting enough ernment from Hong Kong, my husband, my In 1962, four other priests and I were con- food, we were also made to work in the son and I were allowed to leave the Laogai in fined in a 6 by 12 foot windowless room that fields. We were substituted for cows in plow- December 1978. was filled with an inch of standing water. ing the field. Today, I sit before you, which I had never Despite this ill treatment and the other in- The reason why the Chinese put me in pris- dreamed 20 years ago. I sit before you to humane conditions, I continued my services on was because I had called for more freedom take this opportunity to tell you the truth, as a Catholic priest. I even successfully con- and I had demanded more rights, and the to tell you the facts as I have myself experi- verted some of the guards who were charged Chinese considered that to be engaging in enced. But I speak not for myself but for the to watch us. revolutionary activities, and these instru- thousands of brothers and sisters who are At the completion of my sentence, I was 62 ments that you see before me today are some still living this terrible existence. years old. But I was not fully released at of the tools that were used to carry out the Thank you for listening to me tell my that time. The Government forced me to ac- torture on me. story. I hope that you may better understand cept forced job replacement in the Laogai Now, this is a piece of the electric baton the realities of the Laogai through my ac- labor camp because I was originally charged that was used and forced through my mouth count of it. Thank you. with the counterrevolutionary crime. and what happened was since this had elec- Mr. SMITH. Mrs. Ho, I want to thank you I knew that a forced-job replacement as- tric shocks, it totally damaged my teeth. for your very moving testimony and just ob- signment means a life sentence laboring at And I also saw Chinese prison officials in- serve that there is a conference on women the Laogai labor camp. I labored at the serting this into a woman’s vagina, and even slated for Beijing in the fall of this year and Nanchang No. 4 prison for 11 years as a today I know of women who have difficulty the voice and the testimony, the witness forced-job replacement worker. in going to the bathroom because of the that you have made today is something that In 1981, at the age of 74, I was again ar- damage that they suffered. needs to be heard at that conference. rested for my continued activity as a Catho- And I still bear today on my body some of Unfortunately, it is most likely going to be lic priest. I was sentenced to serve another the marks that were inflicted because of this a conference that has more of a Western-ori- 10-year term as a Laogai slave. torture. For instance, because of the self- ented focus and issues of the abuse of women In 1988, I was released fully and unexpect- tightening handcuff here, even today I have in the Laogai probably will not get men- edly. I was 81 years old at the time of my re- scars on both my hands and they do not tioned at all. But I think it behooves us, and lease. I served a total of 35 years in the labor function properly. And some of the other I know from my position as chairman of this camp. I cannot begin to tell you how many things that the Chinese did was keeping me subcommittee I will push hard to try to en- people, among them many of my friends and suspended in the air, and then beating with sure that you and people who have the kinds my disciples disappeared completely for rifle butts and piercing me with bayonets of experiences that you have had at the every one that survived. and pouring hot water over my body. And as hands of your jailers get an opportunity to Thank you for inviting me here. I hope I a result, I have injury marks on my head and make your voice known at that very impor- have helped you gain an understanding of on my hands. tant conference. the Communist government’s willingness to And I was even a witness to a couple of And I do want to thank you for your wit- use the Laogai to destroy its citizens’ human people who were sentenced to death. As soon ness and certainly your courage under such rights. There are still priests in the Laogai as the Chinese announced that someone was extreme pressure and your witness for faith camp. to be sentenced to death, what they did was and the grace that surely had to have been Thank you. they would force that political person of en- within you to preserve you during that very Mr. SMITH. Thank you, Father, very much gage in singing songs and dancing. The bul- difficult time. It is very, very inspiring in- for that moving testimony as well. I am 42 lets that were used to kill someone, as well deed. So I thank you for that testimony. years old, and when I think that you have as the ropes that were used to hang someone, I would like to—and again at the conclu- spent 35 of your years in the Laogai simply even the expenses involved for that would be sion of our witnesses, I would ask my sub- because of your faith in Christ, it is truly deducted from the convicted person. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10087 These practices that go on in Chinese pris- occur with all of these unspeakable horrors These clothes are the clothes that I wore. ons and labor camps in Tibet reflect the going on baffles me and angers me, and I And these are also clothes that I wore. overall abuses going on today. And in this think it does you as well. I now live in the United States and I have regard, I would sort of especially like to Again, I think on this committee and a family of my own. I deeply hope that my mention the trip by Ambassador Lilley in among Members on both sides of the aisle children and all other children, as well as fu- April 1991. who care so deeply, our hope is to raise ture generations, do not have to suffer these And I have kept this diary to this day, and human rights to the level that it deserves. It kinds of tortures and difficulties. this is a diary that I kept while I was in pris- ought to be central in our relationship with Thank you all very much for your concern on. the Peoples Republic of China and any other about the Chinese Laogai system. Mr. GYATSO. And I have a slide of the day country of the world, not a sub-issue. Re- Mr. SMITH. Thank you very much. Mr. Liu, and the month when then Ambassador Lilley grettably it is a subissue at the current for your testimony and, again, by showing us visited Drapchi Prison in Lhasa. That is the time. the prison garb. You remind us again that site of the Utritu prison in Lhasa where I I would like to ask Mr. Frank Wolf, Con- this is a reality that has to be dealt with. It spent 9 years. gressman Wolf, if he would like to join us. is not something that is in the past. It is cur- That is a shot of Sangyip prison where I Mr. Wolf is a leader in human rights and has rent. It is as current as today. And unfortu- spent 10 years. been very active, particularly on the issue of nately our policies vis-a-vis the PRC act as if That is a shot of Drapchi prison where I China and the use of Gulag labor and the im- the rogue government that has the power in Beijing somehow should be treated with re- spent 7 years. portation of those products, and religious spect. And when you so disrespect your own And that is a map of Lhasa and the ones in freedom as well. citizenry to use torture and to impose so red, they show the detention facilities in I would like to call our final panel before much pain and cruelty, it behooves this Con- Lhasa and they number about eight today. going to questions to appear before the sub- gress I think to up the ante and be much And the ones in yellow and orange are mili- committee. And the first to speak will be Mr. more concerned about human rights than we tary and police complexes. And the ones in Liu, who is the son of a are with profits. green are really what is left of the tradi- counterrevolutionary, a man who was first tional Tibetan area in Lhasa today. So I thank you for your very strong state- imprisoned at the age of 13. A man who, be- ment. In April 1991, then ambassador James cause of the affiliations of his father, who Lilley, along with two American officials, Our last witness will be Harry Wu. Harry was in the prior government, was targeted Wu is someone who many of us have come to visited the Drapchi prison. And what Palden for this mistreatment, and then spent a total Gyatso and his other friends in prison did know and greatly admire because of his tre- of 25 years in the Chinese Laogai. mendous courage. Not only did he spend 19 was they tried to present to Ambassador Mr. Liu, if you could present your testi- years in the Chinese Laogai, but he also has Lilley a petition detailing the Chinese mony, and your full statement will be made gone back risking his own life, possible im- abuses in prison. But what happened was am- a part of the record, and you may proceed as prisonment and death, to bring more infor- bassador Lilley—he was shaking his hands you care to. mation out to bear further witness to the with one of the prisoners and on his other STATEMENT OF LIU XINHU, JUVENILE PRISONER continued repression by the Peoples Republic hand he had the petition, but then one of the of China. Chinese guards just snatched away the peti- Mr. LIU. My name is Liu Xinhu. My father was an official in the former government. And, Harry, we are indebted to you for pro- tion and after Ambassador Lilley left, the viding this information. Anyone anywhere in petition was given to the warden of the pris- The Communist Party, on the pretext that he would disrupt labor discipline, arrested the world who cares about human rights has on, and because after he left, the Chinese of- to look up to you as one of the great giants ficials called in the Army. They had to go him and sent him to a reeducation-through- labor prison camp in 1958. He was sent to the and leaders in the cause of human rights. through a really hard time. I would ask you to, if you would, present Baimaoling Farm to serve his sentence. And the other aspect of the visit was that your testimony at this point. every time when such a delegation does visit In 1958, I was 13 years old. Because I was STATEMENT OF HARRY WU any Tibetan prisons, the Chinese put on a the eldest son in the family of a very different show. The prisons are cleaned counterrevolutionary, the Communist gov- Mr. WU. Ladies, gentlemen, my name is Wu up and more food is provided. Just to give ernment found an excuse, which had no legal Hongda and English name is Harry Wu. I was born in Shanghai in 1937. During my the impression that the prisoners are precedent, and sent me to live at the same second year of college, in 1957, the students healthy and that there is nothing wrong with Laogai prison farm as my father. After being released from the Laogai sen- were encouraged by the Communist Party to them. express their opinions and concerns about And two of the individuals connected with tence at the farm in 1966, I was ordered to the direction of the country. Although I ini- presenting the petition to Ambassador continue forced labor at the farm as a forced- tially kept quiet, in the end I offered a few Lilley, Lobsang Tenzin and Tenpa Wangdak, job placement worker. criticisms, including my opinion that the So- were detained in solitary confinement be- In 1974, I was once again labeled a counterrevolutionary element because of my viet invasion of Hungary in 1956 was in viola- cause of the action. tion of international law, and I stated my The prisoners were then transferred to political attitudes. I was placed under even feelings that the Communists were treating Nepal Tramo labor camp close to Lhasa. stricter controls. I was detained until my re- the common people as second-class citizens. After that the army came in and then they lease in 1983. During the 25 years I spent in Because of these comments, I was denounced started beating us up and started torturing the Laogai, I suffered innumerable beatings and torments. as a capitalist counterrevolutionary rightist. us. I was arrested and, without a trial, sen- The Baimaoling farm is internally known These are only a few instances of the var- tenced to life in the reeducation labor camp as the Shanghai No. 2 Laogai general bri- ious atrocities committed by the Chinese on in 1960. I was told this was because of my gade. It is located in the southeast area of the Tibetans, and whatever I have told you poor political attitude. My life sentence was Anhui Province. Its scale is enormous and it today is true and I am really glad that I have mostly a result of my family’s political had a chance to come here today and inform holds an average 50,000 Laogai prisoners, background because my father was a banker. you all about this. And please remember Laojiao prisoners, and jiuye personnel. It While I was held in the Laogai, my mother that there are still people inside Tibet today produces tea, rice, valves and toys, as well as died. I found out 15 years later she commit- who are going through similar experiences other goods. ted suicide by taking sleeping pills shortly that I have gone through. Besides the farming that I did at the after she was told of my arrest. I discovered Thank you very much. Laogai prison, I was also part of a so-called this only after returning to Shanghai years Mr. SMITH. Mr. Gyatso, I thank you for corpse brigade. At that time there was mas- later to collect her ashes. your, again, very moving testimony and by sive starvation in China and people were In December 1969 I was released from my actually visually displaying the implements dying by the scores. And so they needed peo- Laogai sentence. That did not mean I was used to repress people and to torture them. ple to bury the bodies, and I was a part of freed from the camp and allowed to return to You bring an additional dimension to our un- that corpse brigade. my home. Instead, I was forced to resettle derstanding, feeble as it is, to what it must My father and I were detained in different permanently at the Laogai coal mine and be like to live under the horrors of this ter- sections of the farm and we were not per- serve as a forced-job placement personnel. In rible Gulag system. mitted to see each other. The public security other words, I was not released at all and And, you know, what we have been hearing police only told me in 1993 that he had died forced to continue as forced labor until my so far, and I know my colleagues and I all and that I had to go and claim the corpse. final release from the Laogai system in 1979. feel this, and that is you are witness, and Fa- Once at the crematorium, I saw his cold and I spent 19 years in the Laogai at 12 dif- ther Cai, you as well, to unspeakable hor- pale body. I was given these clothes that he ferent forced labor camps. I was forced to do rors. And to think that this Government, the was wearing and I cried bitterly. I felt that slave labor at agricultural farms, a chemical U.S. Government, and many other Western my father was braver than I was because he factory, a steel plant, and a coal mine. I was governments, continue to trade and to do dared to determine his own end to his dif- regularly denied food and during one period business with the dictatorship in Beijing as ficult life and gain his freedom. nearly starved to death. Torture perma- if none of this is going on, or as if it can be Mr. LIU. The first pair of clothes that you nently damaged my back. I had my arm bro- put in a compartment and all other trade saw were the clothes that I took off my fa- ken during a beating. I was nearly killed in and commerce and diplomatic niceties can ther’s body in 1993. a coal mine accident. H10088 CONGRESSIONAL RECORD — HOUSE November 5, 1997 I had to become a beast to survive day-to- day, the Chinese Government maintains that the camps since they came to power. And at day life in the Laogai. Today, all over the so- reeducation-through-labor is not part of the this point, 2 million are still in some 685 called new China there are millions still judiciary system. In fact, as in its early camps. This is a ridiculous figure. Who can fighting to survive the Laogai. days, the Government intentionally used the believe that in a country of 1.2 billion people, Mr. Chairman, the subcommittee has heard reeducation-through-labor policy to im- over the 45-year history, only 10 million peo- today short descriptions of the experiences prison people in force labor camps, without ple have been in prison. of six Laogai survivors. I would like to now even a trace, for periods of 2 to 3 years. One should never, of course, believe any present a brief overview of the origins, struc- Evidence exists indicating that reeduca- number they give to the public. In fact, no tures, and scope of the system. tion-through-labor is more widely used today one will probably ever know the true number With your permission, Mr. Chairman, I will than ever. And a large number of the stu- of the people they executed and sent to the submit a more detailed statement of this for dents, intellectuals, workers, and religious camps. the record. believers and dissidents are currently locked I am submitting for the record my detailed Every totalitarian regime must have in the reeducation camps for their criminal analysis.1 I estimate that since 1949 more means to control and suppress opposition. activities. These camps are fundamentally than 50 million people have been Laogai or The Nazis in Germany had their concentra- no different from the other forced labor laojiao prisoners. Remember, laojiao or re- tion camp systems throughout Europe, camps in the system. education-through-labor is not considered by which housed millions of people whose reli- Thought reform and reform-through-labor the Communists to be imprisonment. There- gion, race, or political views made them tar- are both the principal methods of the Laogai fore, they do not count these people in either gets of persecution. The vast Gulag in the camp. There is a saying in the Laogai camps their 10 million figure or in the current two former Soviet Union was first created to re- that goes, ‘‘There is an end to Laogai and million figure. move the White Russians from society soon laojiao, but jiuye is forever.’’ Neither do they today count those in the after the revolution which brought the Com- Before 1980, almost 90 percent of the province, county or village detention cen- munists to power. Throughout its history, Laogai prisoners and laojiao prisoners were ters, military prisons or secret prisons. the Gulag served as a destination, often never fully released from the system. They We at the Laogai Research Foundation final, for both penal criminals and those who were simply transferred into a forced-job have documented nearly 1,100 camps, a list of opposed Stalin and other Soviet leaders. placement personnel or what we call jiuye. which I am submitting for the record. Our The Chinese Laogai, in its origins, was Personnel, within the camps. list does not include detention centers or quite similar to the Gulag. But Mao adapted The official explanation of the forced-job military or secret prisons, nor is it a com- the Soviet model to the Chinese context. The placement is, ‘‘To fully implement labor re- plete list of labor camps. We are learning of Laogai became a tool of the people’s demo- form policies and ensure public safety.’’ This others every month. cratic dictatorship in fighting dissent within practice continues today on a large scale, Mr. Chairman, if we consider reform an ongoing class struggle. but not as much as prior to 1980. Part of the through labor, reeducation-through-labor, The official function of the Laogai is to re- reason for forced-job placement is that the and forced-job placement personnel prisoners move counter-revolutionaries and other Communists realize they cannot trust alone, I believe the Chinese Government has criminal offenders from the population and Laogai prisoners or laojiao prisoners; the between 8 to 10 million people in the Laogai to place them under state supervision. In the people who have suffered greatly and seen today. Laogai, prisoners undergo thought reform the true nature of the Communist system. Mr. Chairman, thank you for offering us, and reform through labor and are reshaped Also these prisoners are necessary to main- survivors of the Laogai, from China and from into new socialist persons. Arrests and sen- tain production in the camps considering the Tibet, the opportunity to improve your un- tences, even for common criminals, are constant flow of the new prisoners. In other derstanding of the world’s most extensive based as much on class background and po- words, their experience in the operation of forced-labor camp system. A system which is litical standing as on criminal activity and the Laogai is necessary to keep the system a human rights abuse of momentous propor- only reinforce the true nature of the system: working. tions. absolute political control. All Laogai prisoners are forced to labor to This is the first hearing on the Laogai ever The term ‘‘laogaidui’’ is used as shorthand compel reform and become new socialist per- conducted by any democratic legislative by the Chinese people in much of the same sons. New arrivals are subject to immediate, body in the world. We are very grateful. way Gulag was used in the Soviet Union. It daily, lengthy integration sessions and Thank you. instills fear in the average person. The exist- forced to admit their crimes. These sessions Mr. MATSUI. Mr. Speaker, I yield 4 ence of the Laogai remains the central may last days, weeks, or months. In some minutes to the gentleman from Mary- human rights issue in China and Tibet today. cases, they last years. As a system, its scope, numbers of the The official Laogai policy is reform first, land [Mr. HOYER]. camps and prisoners, degree of cruelty, and a production second. The prisoners of the Mr. HOYER. Mr. Speaker, I thank fundamental inhumanity long surpassed the Laogai face constant brainwashing. The my friend from California [Mr. MATSUI] Soviet Gulag. value system of the society as a whole has for yielding this time to me, and, Mr. Today I want to focus on the Laodong not place in the Laogai. The prisoner is Speaker, I rise in very strong support gaizao, laojiao, and jiuye components. One stripped of his morals, his beliefs, his reli- of H.R. 2195 and applaud its author, my thing, all of them were mixed together into gions, his individual will, his sense of right friend, the gentleman from New Jersey one idea to use the so-called thought reform or wrong. They are encouraged to stand to- [Mr. SMITH], for his work and his com- and forced labor. gether with the Government and denounce Official Communist Party documents from their crimes. They are completely retrained mitment to promoting human rights the 1950’s say that the Laogai is, ‘‘The proc- to follow the moral order of the Communist not only in China but around the ess of labor reform of criminals which essen- Party and its society. world. He is sitting next to at this tially is an effective method of purging and If a prisoner resists, he or she is tortured. point in time the gentleman from Vir- eliminating all criminals and There is much evidence coming to light that ginia [Mr. WOLF]. counterrevolutionaries.’’ thought reform is less and less successful. Mr. WOLF and I serve on the Sub- In 1988, the Ministry of Justice published a This apparently persuaded the Laogai offi- committee on Treasury, Postal Serv- criminal reform handbook which summed up cials to rely more and more on physical tor- ice, and General Government, and Mr. the purpose of the Laogai as follows: ‘‘The ture. This situation is understandable as it primary task of our Laogai facility is pun- becomes clear that even the Communists no WOLF for over a decade has been a ishing and reforming criminals. To define longer believe their own ideology. strong proponent of urging the Treas- their functions concretely, they fulfill the But struggle meetings are still held. Mao ury Department to fully enforce exist- tasks in the following three fields: punishing Tse Tung’s teachings are still used and those ing law as it relates to slave labor. criminals and putting them under surveil- that show a poor political attitude are beat- So I want to congratulate both the lance; reforming criminals; and, organizing en. gentleman from New Jersey [Mr. criminals in labor and production, thus cre- Laogai prisoners reform progress is judged SMITH] and the gentleman from Vir- ating wealth for the society.’’ in part by their productive output. Prisoners This is clear acknowledgement of the have a work quota and punished if it is not ginia [Mr. WOLF], my colleagues on the state-run slave labor of the Laogai system. met. Food is withheld. Beatings are given. Helsinki Commission, for their leader- Laojiao, or reeducation-through-labor, Solitary confinement is common and already ship over long periods of time. More plays a unique role within the Laogai sys- limited family visits and contacts are elimi- generally, I would like to applaud the tem. It was created as a last resort, extreme nated. gentleman from California [Mr. COX] as alternative to the existing reform through In adding this as summary, Mr. Chairman, well and the other Members who labor policy. It was established in the 1950’s I would like to address the number of the worked to provide vehicles other than after the Communists had nearly eliminated people who have gone through the Laogai all of the remaining enemies of the revolu- system and how many are still there in the MFN debate for this body to ad- tion from the capitalist classes. China and Tibet today. dress the range of policy issues which The Communist labeled this the highest The Chinese Government 2 years ago stat- form our complex relationship with level administering of discipline. To this ed that 10 million people had been sent to China. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10089 I have opposed, Mr. Speaker, MFN for regard to some of these fundamental Mr. CRANE. Mr. Speaker, I yield 2 China because I believe we have been values. And I know there are good peo- minutes to our colleague, the gen- too tolerant for too long. Clearly, a ple on both sides, but I worry every tleman from Arkansas [Mr. HUTCHIN- strong, prosperous, and democratic time I hear about things, it is eco- SON]. China will not come about without nomic, economic, economic, economic, Mr. HUTCHINSON. Mr. Speaker, I U.S. engagement. But a policy of con- and very little about the passion and thank the gentleman for yielding this structive engagement, Mr. Speaker, the compassion and what is going on time to me. I want to express my ap- must not amount to a practice of reap- with regard to that. preciation for the work of the gen- ing the economic benefits of trade and So this is a good bill, but will the ad- tleman from New Jersey [Mr. SMITH], exchange with China while turning a ministration enforce it? Will they do the author of this legislation. It is blind eye to human rights abuses. anything about it? I just do not know. very, very important, and I rise in Eight years after China’s brutal dem- Now I want to say what the gen- strong support of H.R. 2195. onstration of military repression of tleman from New Jersey [Mr. SMITH) I think an appropriate question could basic freedoms of speech and associa- said. I happened to be with the gen- be asked, do the people of the United tion at Tiananmen Square, reports per- tleman from New Jersey [Mr. SMITH) in States care about what happens in the sist of widespread and egregious human Beijing Prison No. 1. We have socks in Chinese forced labor camps? And I can rights abuses, including the Chinese my office that I picked up off the line tell my colleagues that the common- Government’s maintenance of slave and we had analyzed. They were for ex- sense people of Arkansas, where I live labor camps with which this particular port to the United States. They had and work and who I represent, care amendment specifically deals. golfers on the sides of the socks. They about what happens to the 6 to 8 mil- H.R. 2195 speaks to this area of do not play golf in China. Certainly lion people in the forced labor camps. I human rights abuse by saying properly they did not play golf in 1991. get asked about it in town meetings; that if we are going to have free trade Secondly, we have got to know that they express their concern about it. with China, then let us be sure that we there are more gulags in China today And why do they do this? Because they are not directly or indirectly promot- than there were when Solzhenitsyn know what is happening there and they ing the practice of slave labor by allow- wrote the book that was a profound have learned the lessons of history that ing its fruits to enter our markets. book, ‘‘Gulag Archipelago.’’ There are if we do not care, evil triumphs. Mr. Speaker, the promotion of demo- more gulags in China today than there And so we do not want to repeat the cratic reforms which will afford the were during his time. Fifty million lessons of history, we want to do some- Chinese people the basic freedoms they people have been through them; 6 to 8 thing where we have an opportunity, now lack must not, let me repeat, must million people are going through them and we have that opportunity now. not, be a peripheral element of Amer- today. And what items? Toys, artificial They do not want, because they know ican foreign policy towards China. It flowers, Christmas decorations, and the history, they do not want to give aid to was not with respect to our relations birth of Christ, the birth of Christ, the enemy by purchasing products that Jesus at Christmastime, and more of with the Soviet Union when it existed, are made with slave labor. The problem the Christmas decorations are made and it must not be with respect to our is, we do not always know. with regard to slave labor. This legislation gives $2 million to relations with China. In fact, as I will tell my colleagues, The mantle, ‘‘leader of the free the Customs Service to properly mon- there are Members in this body and world,’’ is not earned through mere lip itor what happens and try to determine there are Members that are watching service. If the United States is going to where those slave labor camps are and that have goods. Some of my col- engage China in trade, it must also en- the products that come from them, re- leagues are wearing goods; they do not gage China directly on the matter of know it; many of my colleagues have it quires reports to Congress. Right now, human rights. Political and religious at home, with regard to artificial flow- the Customs Service do not have the persecution, enforcement of population ers, with regard to cotton goods that resources. This gives them the re- control through coerced abortion and are made in slave labor camps. Two sources they need to track what is sterilization, and organ harvesting million dollars; it is good. made in those slave labor camps, from from death row prisoners are not I want to thank the gentleman from uranium to toys to Chinese tea. modes of conduct which ought to be California [Mr. COX], the gentleman Scripture tells us that we should not consistent with friendship with the from New Jersey [Mr. SMITH), the gen- give speed to evil doers, and I think in United States of America. tleman from Illinois [Mr. CRANE], the our country we have inadvertently We must adopt policies, Mr. Speaker, gentleman from California [Mr. MAT- done that. We must put an end to that. which put action behind our outrage. It SUI]. This bill addresses that problem. We is not enough to talk about the abuses, I doubt, though, whether this admin- will send a strong signal to the Chinese it is not enough to rhetorically oppose istration, and let me just say the Bush Government that is very, very nec- those abuses, we must act on our con- administration was no better, the Bush essary right now, that trade is impor- viction and on our principles. H.R. 2195 administration was no better in enforc- tant, but it is not all important, and is an appropriate and constructive step ing these, and the Customs officials at what happens in those forced labor in this direction, and I urge my col- the administration were no better, and camps is important, and we do not leagues to support it. this administration has been a disas- want to buy those products, and we Mr. CRANE. Mr. Speaker, I yield 5 ter. In fact, it took them 2 years to go want that to stop in that land. minutes to the gentleman from Vir- into Beijing Prison No. 1, and finally, Mr. MATSUI. Mr. Speaker, I reserve ginia [Mr. WOLF]. when they went in, they had removed the balance of my time. (Mr. WOLF asked and was given per- all the evidence. There are gulags, Mr. CRANE. Mr. Speaker, I yield 2 mission to revise and extend his re- there are goods coming over. minutes to our colleague, the gen- marks.) This will be a good first step. I just tleman from Texas [Mr. JOHNSON]. Mr. WOLF. Mr. Speaker, I rise in sup- hope and pray, after we pass it with an Mr. SAM JOHNSON of Texas. Mr. port of the bill. I want to thank the overwhelming vote, that it will go over Speaker, it is high time to stop prod- gentleman from California [Mr. COX] to the Senate with such a majority ucts produced by slave labor in China and the gentleman from New York [Mr. vote, such a lead vote, that Mr. LOTT from entering the United States of GILMAN] and the gentleman from New and others will pick it up and pass it America. For more than 50 years, we Jersey [Mr. SMITH) and the gentleman whereby we can take the whole pack- have banned products produced by from Maryland [Mr. HOYER] and the age and then do something whereby the slave labor in China, but they continue others for this. people that are in the camps know that to flood our markets every day. I think Before I begin, let me just say out- the United States Congress has spoken it is appalling. We should not support right, I am worried that this adminis- out and has done something construc- products that are produced by a nation tration and this Congress, on both sides tive. that endorses or uses slave labor. of the aisle, are becoming an economic- Mr. MATSUI. Mr. Speaker, I reserve My question is, where is the adminis- driven party that cares very little with the balance of my time. tration? The President promised he H10090 CONGRESSIONAL RECORD — HOUSE November 5, 1997 would no longer tolerate these prac- on slave labor. Slavery was not offi- cess to the Laogai, we do not have ac- tices from China, but these products cially abolished in imperial China until cess to these prison camps, but we have still enter this country, and the admin- the end of the Manchu dynasty in 1908, to almost find some way to ascertain istration refuses to enforce current and even then, the law permitted fami- whether or not there is a violation law. President Clinton is unable or un- lies in time of famine to indenture going on with specific information. The willing to stand up to the Chinese and their children for over 20 years. Chinese then, under the MOU, inves- say this will no longer be tolerated. But even though slavery was not offi- tigated themselves and gave us their This bill goes a long way toward cially abolished in China until earlier findings. So we have the alleged per- making up for the administration in this century, it was the ignominious petrator investigating themselves and failings. It gives the Customs office the achievement of Chinese communism to then they come back to us. Then, we tools to hire more inspectors to track reinstate it in the form of the notori- have 60 days that we have to wait to and stop these tainted goods from en- ous Laogai slave labor camps. The actually make a site visit and very tering the United States. It also gives Laogai, or reform through labor, camps often it far exceeds 60 days. the American Embassy the equipment have been an integral part of Chinese Let me give one example that was they need to monitor goods produced in totalitarianism since the inception of cited very recently by our Commis- these inhumane slave camps through- the People’s Republic of China in 1949. sioner of Customs, George Weise. He out China. I have to wonder, if the They are designed for the dual purposes pointed out in his testimony on March President spent as much time and ef- of political control and forced develop- 21, 1997, that on March 11, 1996, the Chi- fort improving human rights in China ment modeled on Stalin’s Soviet gulag. nese Ministry of Justice notified the as he has on State parties and fancy An estimated 50 million Chinese men custom attache that she be allowed to dinners for President Jiang, maybe and women have passed through these visit the Changsha Laogai machinery China would change its ways. camps, of whom 15 million have per- factory. He points out in his testimony Mr. President, the prisoners stuck in ished. Today, anywhere from 6 to 8 mil- that the request to go to that factory these slave camps depend on our ac- lion people are captive in the 1,100 began in 1992. Four years to finally tions speaking louder than our words. camps of the Laogai, held and forced to have site access to a prison camp that Let us vote for this bill. work under grossly inhumane condi- is not unlike the one that is to my left Mr. MATSUI. Mr. Speaker, I reserve tions. that was found to be in violation of our the balance of my time. The People’s Republic of China tells code and thankfully, there is a deten- Mr. CRANE. Mr. Speaker, I yield 1 us that this does not go on at all, but tion order on the pipes coming out of minute to our distinguished colleague, today the United States does not im- that detention camp. Mr. Speaker, we need to renegotiate the gentleman from Pennsylvania [Mr. pose punitive tariffs on these products, that MOU. I have been over there, I FOX]. we ban them. Mr. Speaker, 27 specified have talked to the customs people. Mr. FOX of Pennsylvania. Mr. Speak- products of the Laogai camps are al- They cannot get access. They run into er, I rise to support H.R. 2195. ready kept out by our Customs agents roadblocks, they run into bureaucratic As Americans, we must stand up in and yet the Customs authorities tell us snafus over and over again, and then opposition to slave-made goods. As a they just do not have the resources to somehow, the administration comes member of the Human Rights Caucus, I do the job and this bill gives them up, and my friend the gentleman from want to commend the gentleman from those resources. Virginia [Mr. WOLF] said the Bush ad- New Jersey [Mr. SMITH], chairman of The United States has two agree- ministration was just like this. ments with the People’s Republic of the subcommittee, and the House Com- My good friend from Virginia said a China, binding agreements executed in mittee on International Relations for moment ago, we do not have access to introducing this forward-thinking leg- 1992 and 1994, that not only bar trade these prison camps. The Bush adminis- islation which calls for the U.S. Com- on prison-made slave labor products, tration were the ones who actually ne- missioner of Customs to report, after a but also allow the United States to in- gotiated the MOU, and then they come period of inspection, the extent of the spect those forced labor camps. But the up to our hearings and they say, look use of forced labor in China and manu- Chinese Government, in 1996, allowed at this. We had this fine statement of factured products destined to the Unit- us access to just one of those. principles, memorandum of under- ed States market, the volume of prod- This bill requires the President to re- standing and that defies all kinds of ucts made with forced labor destined to negotiate that MOU and rectify the sit- good will as if the Chinese dictatorship the United States market, the progress uation. is cooperating with us. of the United States Customs Service I congratulate the author, and I urge Nothing could be further from the in identifying and interdicting prod- support of the gentleman’s bill on slave truth. They are not. It is a sham. We ucts made with forced labor. labor products. try to make the sham work. That is Mr. Speaker, this is a bipartisan bill. Mr. CRANE. Mr. Speaker, I yield 3 why we get a few detention orders, but It is a matter of fairness, it is a matter minutes to our colleague, the gen- it is about time we enhanced our ac- of human rights, and we here in the tleman from New Jersey [Mr. SMITH]. cess, hopefully unfettered access. But I Congress and the House of Representa- (Mr. SMITH of New Jersey asked and do not think that is going to happen tives tonight have an opportunity to was given permission to revise and ex- any time soon. We need to tighten this vote for a bill that is going to make a tend his remarks.) MOU. positive change in China. After we re- Mr. SMITH of New Jersey. Mr. This resolution calls on the President ceive the report from the Commis- Speaker, I thank the gentleman from to look into that, and hopefully he will sioner, the action can be taken to Illinois [Mr. CRANE], my good friend, realize it is bad business and certainly make sure that the appropriate for yielding. a violation of human rights to allow changes will be made in China. Let me just say, and to pick up on slave-made goods to come to our And I thank the gentleman from New what the gentleman from California shores, especially when we are talking Jersey [Mr. SMITH] for introducing this [Mr. COX] just pointed out about the about religious prisoners and human legislation and would like to add my number of detention orders, the num- rights activists who are being tortured name as a cosponsor to the bill. ber exceeds 27 and is growing. But and used in ways that none of us would Mr. MATSUI. Mr. Speaker, I reserve there is a real problem, and this is ad- see as civilized. the balance of my time. dressed in the bill, asking the Presi- So I hope my colleagues support this dent to look at it very carefully, to re- b legislation. 2030 negotiate the memorandum of under- The SPEAKER pro tempore (Mr. Mr. CRANE. Mr. Speaker, I yield 2 standing that we currently have in ex- QUINN). The Chair would inform the minutes to the gentleman from Califor- istence. Members that the gentleman from Illi- nia [Mr. COX]. Most people would find it almost ri- nois [Mr. CRANE], has 5 minutes re- Mr. COX of California. Mr. Speaker, diculous that we have to give specific maining, and the gentleman from Cali- slavery is an ugly institution, and its information first, and remember, this fornia [Mr. MATSUI] has 16 1⁄2 minutes most hideous and virulent form is pris- is a closed country. We do not have ac- remaining. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10091 Mr. SOLOMON. Mr. Speaker, I rise in sup- (b) ADJUSTMENT OF TARIFFS.—Notwith- are they wrong, but they block any ef- port of this excellent measure introduced by standing any other provision of law, the Sec- fort by any average Member of this retary of the Treasury shall adjust the tar- Mr. SMITH of New Jersey. It is badly needed. body to address that inequity. We can- iffs on all products of the People’s Republic Our laws supposedly ban the importation of of China so that an amount is collected on not get a bill through that committee, slave-made goods, yet we know that we con- imports of products of the People’s Republic and one never will. We have one chance tinue to be flooded with goods from China's of China, during the 3-month period begin- this legislative session to address that. vast gulag, the Laogai. Obviously, our laws ning 30 days after the end of the calendar We have one chance this legislative are not being enforced the way they should quarter for which a determination is made session to say, we are going to treat be. This bill will help give our customs inspec- under subsection (a), equal to the amount by the Chinese the way they treat us, and tors the tools they need to keep out these ugly which the dollar amount computed under if they want to charge us 2 percent, as paragraph (1) of subjection (a) exceeds the we charge them, we will do the same. goods. dollar amount computed under paragraph (2) Mr. Speaker, the use of slave labor is only of subsection (a). But if they want to charge us 40 per- one of many disgusting practices of the Com- The SPEAKER pro tempore. For cent, if they want to continue to have munist Chinese government, but it is certainly what purpose does the gentleman from a $40 billion a year trade surplus out of one of the worst. our money and use that money to sell Illinois [Mr. CRANE] rise? Estimates of those languishing in China's Mr. CRANE. Mr. Speaker, I reserve weapons or give weapons to the enemy gulag run well into the millions. It is for them all points of order against the motion of America, then we are going to do that we are here on the floor today. It is their to recommit with instructions. something about it. silenced voices that we can hear as we wade The SPEAKER pro tempore. Pursu- The Democratic leadership and the through the piles of Communist Chinese ant to the rule, the gentleman from Republican leadership will come to the goods in our stores. Mississippi [Mr. TAYLOR] is recognized floor in the next couple of minutes and Short of a revolution in China, and one is for 5 minutes in support of his motion. say, let us do not do this, let us do not surely coming, the only way we can battle Mr. TAYLOR of Mississippi. Mr. act hasty. There is nothing hasty about slave labor in that country is to refrain from Speaker, I want to thank the gen- this. This has been going on for dec- buying slave-made goods, which provides the tleman from Illinois [Mr. CRANE] for ades. financial lifeline to the wardens of that vast reserving the point of order and not What is different is that in the 2 prison, the Communists. trying to cut off debate. years that each of us is given to serve This bill gets us in that direction and I urge Mr. Speaker, the efforts of the gen- this Nation in the elections that are an ``aye'' vote. tleman from California [Mr. Cox], held every other year, this is the one Mr. MATSUI. Mr. Speaker, I urge though well-intentioned, are little chance we are probably going to get to support of the bill, and I yield back the more than giving a sweet talk to a do something about it. They are going balance of my time. dying man. It does not really change to say, do not vote against the ruling Mr. CRANE. Mr. Speaker, I yield things. We spend a little bit more of the Chair because somehow the back the balance of my time. money to find out what we already Chair is almighty, the Chair knows The SPEAKER pro tempore. All time know, that the People’s Republic of better. has expired. China is using slave labor, making Well, the Chair is wrong. The Chair Pursuant to House Resolution 302, goods, and sending goods to the United will not give us a chance to vote on the previous question is ordered on the States of America to be sold here and this. This is the one chance we are bill, as amended. put Americans out of work. There is going to get. We are going to get one The question is on the engrossment nothing new about that. chance to decide if we are going to and third reading of the bill. There is nothing new about the fact have a basic sense of fairness between The bill was ordered to be engrossed that they have a $40 billion trade sur- how the Chinese and the Americans and read a third time, and was read the plus with our country. There is nothing trade with each other, whether we are third time. new about the fact that it is a totali- going to continue to allow goods that MOTION TO RECOMMIT OFFERED BY MR. TAYLOR tarian communist regime that is doing are made with slave labor to compete OF MISSISSIPPI this, and our money feeds their mili- against the goods that are made in Mr. TAYLOR of Mississippi. Mr. tary. There is nothing new about the North Carolina and Mississippi and Speaker, I offer a motion to recommit. fact that they charge us 20 to 40 per- New York and California. We are going The SPEAKER pro tempore. Is the cent on our products that we try to sell to continue to say whether or not we gentleman opposed to the bill? there, while we only charge them, be- are going to turn a blind eye to the Mr. TAYLOR of Mississippi. At this cause of the Most-Favored-Nation Sta- most totalitarian regime in the world time I am, Mr. Speaker. tus agreement, about 2 percent on their that sells weapons to our opponents. The SPEAKER pro tempore. The products that they sell here. But I say to my colleagues, it is OK, Clerk will report the motion to recom- What is new tonight is that we can because the Committee on Ways and mit. have a chance to really address that, Means does not want to hear the idea The Clerk read as follows: not just spend a couple more million that maybe there ought to be a basic Mr. TAYLOR of Mississippi moves to dollars finding out what we already fairness between what they charge us recommit the bill, H.R. 2195, to the know, that they are making things in tariffs and what we charge them. Committee on Ways and Means with with slave labor, but to tell the Chi- This is our chance. We are going to instructions to report the bill back to nese that we will expect some basic have to work against your leadership, I the House forthwith with the following level of fairness from them in return am going to have to vote against mine, amendment: At the end of the bill in- for having access to our markets, and but we were not sent here to listen to sert the following: we will expect you, China, to treat its the leadership, we were sent here to lis- SECTION 6. QUARTERLY ADJUSTMENT OF TAR- people better if they want to have ac- ten to the people of our congressional IFFS ON PRODUCTS OF THE PEO- cess to our markets. districts and the people of this Nation, PLE’S REPUBLIC OF CHINA. The people from the Committee on and they want us to make things right. (a) QUARTERLY DETERMINATIONS BY SEC- RETARY OF THE TREASURY.—The Secretary of Ways and Means are going to object to They want us to be fair with them. the Treasury shall determine, at the end of this. The people from the Committee They want us to change things that are each calendar quarter— on Ways and Means by and large are wrong. They want us to do what is (1) the dollar amount of tariffs paid to the free traders. They think that however right. People’s Republic of China during that quar- horrible the Chinese Government is, I am almost reminded of the song, ter by persons for exporting goods and serv- however horrible they are and how The Impossible Dream. This is your ices from the United States to the People’s many weapons they sell to our oppo- chance to fight for what is right, with- Republic of China; and (2) the dollar amount of tariffs paid to the nents they ought to have total access out question or pause, because as your United States during that quarter by persons to our market, because doggone it, leadership is concerned, you are clearly for importing goods and services from the that is what free trade is all about. walking into hell for a heavenly cause. People’s Republic of China into the United I say to my colleagues, they are I am asking you to do what is right States. wrong, they are dead wrong. Not only for America. H10092 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Mr. Speaker, I yield back the balance Means wants, regardless of what the MOTION TO TABLE OFFERED BY MR CRANE of my time. Speaker wants, regardless of what the Mr. CRANE. Mr. Speaker, I move to b 2045 Democratic leadership wants or the Re- lay on the table the appeal of the rul- publican leadership wants. For once, ing of the Chair. POINT OF ORDER let us do what America wants. Tonight The SPEAKER pro tempore. The The SPEAKER pro tempore [Mr. is the Members’ chance. question is on the motion to table of- QUINN]. Does the gentleman from Illi- I am asking for that opportunity. I fered by the gentleman from Illinois nois [Mr. CRANE] insist on his point of hope Members will vote against tabling [Mr. CRANE]. order? this motion. I hope we will bring it to The question was taken; and the Mr. CRANE. Mr. Speaker, I make a the floor. I hope we will vote as a Na- Speaker pro tempore announced that point of order against the motion to re- tion to tell the people of China we are the ayes appeared to have it. commit with instructions. sick and tired of being their chumps. Mr. TAYLOR of Mississippi. Mr. The SPEAKER pro tempore. Does the The SPEAKER pro tempore. The Speaker, I object to the vote on the gentleman wish to be heard on his Chair is prepared to rule at this time. ground that a quorum is not present point of order? The gentleman from Illinois [Mr. and make the point of order that a Mr. CRANE. I do, Mr. Speaker. CRANE] makes the point of order that quorum is not present. Mr. Speaker, the motion to recommit the amendment proposed in the motion The SPEAKER pro tempore. Evi- with instructions is not germane to the to recommit is not germane. The test dently a quorum is not present. underlying bill. The fundamental pur- of germaneness in this situation is the The Sergeant at Arms will notify ab- pose or common thread of the bill is relationship of the amendment pro- sent Members. very narrow, and only concerns the posed in the motion to recommit to the Without objection, the vote on final monitoring of products made with provisions of the bill as a whole. passage will be reduced to a five- forced labor. The range of methods em- The bill as perfected authorizes fund- minute vote. ployed in the bill is similarly narrow. ing for monitoring the importation There was no objection. The motion, however, deals with the into the United States of goods pro- The vote was taken by electronic de- reciprocal tariff treatments of the duced by forced labor. It also requires vice, and there were—yeas 217, nays products of China. This is clearly not the reporting of certain information on 202, not voting 14, as follows: within the very narrow purpose of this that topic, and also expresses the sense [Roll No. 581] bill. The issue of tariffs is also outside of the Congress that the President YEAS—217 the range of methods employed in the should review reciprocal trade rela- bill. Therefore, the motion to recom- Aderholt Fawell Linder tionships on that topic. Archer Foley Livingston mit with instructions is not germane, The amendment proposed in the mo- Armey Forbes LoBiondo and I urge the Chair to sustain the Bachus Fossella Lucas tion to recommit would amend the tar- point of order. Baker Fowler Manzullo iff schedules of the United States to The SPEAKER pro tempore. Does the Ballenger Fox McCollum achieve reciprocity between the aggre- Barr Franks (NJ) McCrery gentleman from Mississippi [Mr. TAY- gate amount of Chinese tariffs on the Barrett (NE) Frelinghuysen McDade LOR] wish to be heard on the point of Barton Gallegly McHugh American products and the aggregate order? Bass Ganske McInnis amount of American tariffs on Chinese Bateman Gekas McIntosh Mr. TAYLOR of Mississippi. Yes, Mr. products. The bill confines its atten- Bereuter Gibbons McKeon Speaker. tion to products of forced labor. Bilirakis Gilchrest Metcalf The SPEAKER pro tempore. The gen- Bliley Gillmor Mica The amendment, although addressing tleman from Mississippi is recognized. Blunt Gilman Miller (FL) only products of China, extends its at- Boehlert Goodlatte Moakley Mr. TAYLOR of Mississippi. Mr. tention to all products, not just those Boehner Goodling Moran (KS) Speaker, as I mentioned before, the Bonilla Goss Morella made by forced labor, and directly im- Committee on Ways and Means has an Bono Graham Myrick poses tariff treatment, a matter not Brady Granger Nethercutt opportunity every year to consider this part of the bill. Bryant Greenwood Ney measure and measures just like it. The Chair therefore finds that the Bunning Gutknecht Northup They choose not to. Burr Hamilton Norwood I am appealing to the House because amendment is a ‘‘proposition on a sub- Burton Hansen Nussle Buyer Hastert Oxley I have heard on too many occasions ject different from that under consider- ation’’ within the meaning of clause 7 Callahan Hastings (WA) Packard from too many Members of this body Calvert Hayworth Pappas that we are not given the chance to do of rule XVI. That is, the amendment is Camp Hefley Parker not germane. The point of order is sus- Campbell Herger Paul what is right. At every town meeting Canady Hill Paxon we attend, when people ask, how do tained. The motion to recommit is not in order. Cannon Hilleary Pease these unfair things continue to happen, Castle Hobson Peterson (PA) do Members know what we have to PARLIAMENTARY INQUIRY Chabot Hoekstra Petri Chambliss Horn Pickering say? We have to say, it is the commit- Mr. TAYLOR of Mississippi. Mr. Chenoweth Hostettler Pitts tee system, the Speaker, the Commit- Speaker, parliamentary inquiry. Christensen Houghton Pombo tee on Ways and Means committee. The SPEAKER pro tempore. The gen- Coble Hulshof Porter tleman will state his parliamentary in- Coburn Hutchinson Portman They will not let us do that. Collins Hyde Pryce (OH) They do not understand that. They quiry. Combest Inglis Quinn cannot find in the Constitution of the Mr. TAYLOR of Mississippi. Mr. Cook Istook Radanovich United States where it somehow makes Speaker, what is the proper mechanism Cooksey Jenkins Ramstad Cox Johnson (CT) Redmond some Members of Congress better than to question the ruling of the Chair and Crane Johnson, Sam Regula other Members of Congress; where just to make that available to the Members Crapo Jones Riggs a few Members of Congress can decide to make that decision? Cunningham Kasich Rogan The SPEAKER pro tempore. The gen- Deal Kelly Rogers whether or not 435 Members, who were DeLay Kim Ros-Lehtinen each elected by over half a million tleman may appeal the ruling of the Diaz-Balart King (NY) Roukema American citizens, that they cannot Chair. Dickey Kingston Royce even decide on basic questions of right Mr. TAYLOR of Mississippi. Mr. Doolittle Klug Ryun Dreier Knollenberg Salmon and wrong when it comes to trade is- Speaker, I appeal the ruling of the Duncan Kolbe Sanford sues. Chair. Dunn LaHood Saxton I am asking the Members of this body The SPEAKER pro tempore. The gen- Ehlers Largent Scarborough Ehrlich Latham Schaefer, Dan AYLOR to step up to the plate. I am asking tleman from Mississippi [Mr. T ] Emerson LaTourette Schaffer, Bob them to do tonight what they tell their appeals the ruling of the Chair. English Lazio Sensenbrenner constituents at their town meetings. The question is, shall the decision of Ensign Leach Sessions That is, do what is right, regardless of the Chair stand as the judgment of the Everett Lewis (CA) Shadegg Ewing Lewis (KY) Shaw what the Committee on Ways and House? November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10093 Shays Spence Wamp So the motion lay on the table the Kelly Murtha Shadegg Shimkus Stump Watkins Kennedy (MA) Myrick Shaw Shuster Sununu Watts (OK) appeal of the ruling of the Chair was Kennedy (RI) Nadler Shays Skaggs Talent Weldon (FL) agreed to. Kennelly Neal Sherman Skeen Tauzin Weller The result of the vote was announced Kildee Nethercutt Shimkus Smith (NJ) Taylor (NC) White as above recorded. Kilpatrick Neumann Shuster Smith (OR) Thomas Whitfield Kim Ney Sisisky Smith (TX) Thornberry Wicker A motion to reconsider was laid on Kind (WI) Northup Skaggs Smith, Linda Thune Wolf the table. King (NY) Norwood Skeen Snowbarger Tiahrt Young (FL) The SPEAKER pro tempore (Mr. Kingston Nussle Skelton Solomon Upton Kleczka Oberstar Slaughter Souder Walsh KINGSTON). The question is on the pas- Klink Obey Smith (MI) sage of the bill. Klug Olver Smith (NJ) NAYS—202 The question was taken; and the Knollenberg Ortiz Smith (OR) Abercrombie Green Neumann Speaker pro tempore announced that Kolbe Owens Smith (TX) Ackerman Gutierrez Oberstar Kucinich Oxley Smith, Adam Allen Hall (OH) Obey the ayes appeared to have it. LaFalce Packard Smith, Linda LaHood Pallone Snowbarger Andrews Hall (TX) Olver RECORDED VOTE Baesler Harman Ortiz Lampson Pappas Snyder Baldacci Hastings (FL) Owens Mr. SMITH of New Jersey. Mr. Lantos Parker Solomon Barcia Hefner Pallone Speaker, I demand a recorded vote. Largent Pascrell Souder Barrett (WI) Hilliard Pascrell A recorded vote was ordered. Latham Pastor Spence Bartlett Hinchey Pastor LaTourette Paxon Spratt Becerra Hinojosa Payne The SPEAKER pro tempore. This is a Lazio Payne Stabenow Bentsen Holden Pelosi 5-minute vote. Leach Pease Stark Berman Hooley Peterson (MN) The vote was taken by electronic de- Levin Pelosi Stearns Berry Hoyer Pickett Lewis (CA) Peterson (MN) Stenholm Bilbray Hunter Pomeroy vice, and there were—ayes 419, noes 2, Lewis (GA) Peterson (PA) Stokes Bishop Jackson (IL) Poshard answered ‘‘present’’ 1, not voting 11, as Lewis (KY) Petri Strickland Blagojevich Jackson-Lee Price (NC) follows: Linder Pickering Stump Blumenauer (TX) Rahall Lipinski Pitts Stupak Bonior Jefferson Rangel [Roll No. 582] Livingston Pombo Sununu Borski John Reyes AYES—419 LoBiondo Pomeroy Talent Boswell Johnson (WI) Rivers Lofgren Porter Tanner Abercrombie Coble Frost Boucher Johnson, E. B. Rodriguez Lowey Portman Tauscher Ackerman Coburn Furse Boyd Kanjorski Roemer Lucas Poshard Tauzin Aderholt Collins Gallegly Brown (CA) Kaptur Rohrabacher Luther Price (NC) Taylor (MS) Allen Combest Ganske Brown (FL) Kennedy (MA) Rothman Maloney (CT) Pryce (OH) Taylor (NC) Andrews Condit Gejdenson Brown (OH) Kennedy (RI) Roybal-Allard Maloney (NY) Quinn Thomas Archer Conyers Gekas Cardin Kennelly Rush Manton Radanovich Thompson Armey Cook Gephardt Carson Kildee Sabo Manzullo Rahall Thornberry Bachus Cooksey Gibbons Clay Kilpatrick Sanchez Markey Ramstad Thune Baesler Costello Gilchrest Clayton Kind (WI) Sanders Martinez Rangel Thurman Baker Cox Gillmor Clement Kleczka Sandlin Mascara Redmond Tiahrt Baldacci Coyne Gilman Clyburn Klink Sawyer Matsui Regula Tierney Ballenger Cramer Goode Condit Kucinich Scott McCarthy (MO) Reyes Torres Barcia Crane Goodlatte Conyers LaFalce Serrano McCarthy (NY) Riggs Towns Barr Crapo Goodling Costello Lampson Sherman McCollum Rivers Traficant Barrett (NE) Cummings Gordon Coyne Lantos Sisisky McCrery Rodriguez Turner Barrett (WI) Cunningham Goss Cramer Levin Skelton McDade Roemer Upton Bartlett Danner Graham Cummings Lewis (GA) Slaughter McDermott Rogan Velazquez Barton Davis (FL) Granger Danner Lipinski Smith (MI) McGovern Rogers Vento Bass Davis (IL) Green Davis (FL) Lofgren Smith, Adam McHale Rohrabacher Visclosky Bateman Davis (VA) Gutierrez Davis (IL) Lowey Snyder McHugh Ros-Lehtinen Walsh Becerra Deal Gutknecht DeFazio Luther Spratt McInnis Rothman Wamp Bentsen DeFazio Hall (OH) DeGette Maloney (CT) Stabenow McIntosh Roukema Waters Bereuter DeGette Hall (TX) Delahunt Maloney (NY) Stark McIntyre Roybal-Allard Watkins Berman Delahunt Hamilton DeLauro Manton Stenholm McKeon Royce Watt (NC) Berry DeLauro Hansen Dellums Markey Stokes McNulty Rush Watts (OK) Bilbray DeLay Harman Deutsch Martinez Strickland Meehan Ryun Waxman Bilirakis Dellums Hastert Dicks Mascara Stupak Meek Sabo Weldon (FL) Bishop Deutsch Hastings (FL) Dingell Matsui Tanner Menendez Salmon Weldon (PA) Blagojevich Diaz-Balart Hastings (WA) Dixon McCarthy (MO) Tauscher Metcalf Sanchez Weller Bliley Dickey Hayworth Doggett McCarthy (NY) Taylor (MS) Mica Sanders Wexler Blumenauer Dicks Hefley Dooley McDermott Thompson Millender- Sandlin Weygand Blunt Dingell Hefner Doyle McGovern Thurman McDonald Sanford White Boehlert Dixon Herger Edwards McHale Tierney Miller (CA) Sawyer Whitfield Boehner Doggett Hill Engel McIntyre Torres Miller (FL) Saxton Wicker Bonilla Dooley Hilleary Eshoo McNulty Towns Minge Scarborough Wise Bonior Doolittle Hilliard Etheridge Meehan Traficant Mink Schaefer, Dan Wolf Bono Doyle Hinchey Evans Meek Turner Moakley Schaffer, Bob Woolsey Borski Dreier Hinojosa Farr Menendez Velazquez Mollohan Scott Wynn Boswell Duncan Hobson Fattah Millender- Vento Moran (KS) Sensenbrenner Young (FL) Boucher Dunn Hoekstra Fazio McDonald Visclosky Moran (VA) Serrano Boyd Edwards Holden Filner Miller (CA) Waters Morella Sessions Brady Ehlers Hooley Frank (MA) Minge Watt (NC) Brown (FL) Ehrlich Horn NOES—2 Frost Mink Waxman Brown (OH) Emerson Hostettler Furse Mollohan Wexler Brown (CA) Pickett Bryant Engel Houghton Gejdenson Moran (VA) Weygand Bunning English Hoyer Gephardt Murtha Wise ANSWERED ‘‘PRESENT’’—1 Burr Ensign Hulshof Goode Nadler Woolsey Paul Burton Eshoo Hunter Gordon Neal Wynn Buyer Etheridge Hutchinson NOT VOTING—11 NOT VOTING—14 Callahan Evans Hyde Calvert Everett Inglis Cubin Greenwood Schumer Cubin Gonzalez Stearns Camp Ewing Istook Flake McKinney Yates Davis (VA) McKinney Weldon (PA) Campbell Farr Jackson (IL) Foglietta Riley Young (AK) Flake Riley Yates Canady Fattah Jackson-Lee Gonzalez Schiff Foglietta Schiff Young (AK) Cannon Fawell (TX) Ford Schumer b 2127 Cardin Fazio Jefferson Carson Filner Jenkins So the bill was passed. b 2110 Castle Foley John The result of the vote was announced Chabot Forbes Johnson (CT) Mr. BOSWELL, Ms. KILPATRICK, Chambliss Ford Johnson (WI) as above recorded. Mr. BILBRAY, and Mr. Chenoweth Fossella Johnson, E. B. The title of the bill was amended so ROHRABACHER changed their vote Christensen Fowler Johnson, Sam as to read: ‘‘A bill to provide for cer- from ‘‘yea’’ to ‘‘nay.’’ Clay Fox Jones tain measures to increase monitoring Clayton Frank (MA) Kanjorski Mr. BACHUS changed his vote from Clement Franks (NJ) Kaptur of products that are made with forced ‘‘nay’’ to ‘‘yea.’’ Clyburn Frelinghuysen Kasich labor.’’ H10094 CONGRESSIONAL RECORD — HOUSE November 5, 1997 A motion to reconsider was laid on Whereas the Task Force on the Contested Then in 1992, I became a Member of the table. Election in the 46th District of California Congress. That is the way it is sup- f met on February 26, 1997 in Washington, D.C. posed to work, Mr. Speaker, in this on April 19, 1997 in Orange County, California great democracy. and October 24, 1997 in Washington, D.C.; and REPORT ON RESOLUTION AMEND- It is a disgrace that new voters, new ING RULES OF THE HOUSE TO Whereas the House Oversight Committee is now persuing a duplicate and dilatory review citizens are being questioned in this REPEAL EXCEPTION TO RE- campaign against Congresswoman QUIREMENT THAT PUBLIC COM- of materials already in the Committees pos- session by the Secretary of State of Califor- SANCHEZ. Let us not forget, this is a MITTEE PROCEEDINGS BE OPEN nia; and campaign not just against Congress- TO ALL MEDIA Whereas the Task Force on the Contested woman SANCHEZ, this is a campaign Mr. SOLOMON, from the Committee Election in the 46th District of California against new immigrants. This is a cam- on Rules, submitted a privileged report and the Committee have been reviewing paign against new citizens. It is a dis- these materials and has all the information (Rept. No. 105–382) on the resolution (H. grace. Res. 301) amending the Rules of the it needs regarding who voted in the 46th Dis- trict and all the information it needs to Mr. Speaker, I reserve the balance of House of Representatives to repeal the make judgements concerning those votes; my time. exception to the requirement that pub- and Mr. THOMAS. Mr. Speaker, I yield lic committee proceedings be open to Whereas the Committee on House Over- myself such time as I may consume. all media, which was referred to the sight has after over nine months of review Mr. Speaker, this is the second time House Calendar and ordered to be and investigation failed to present credible we come together on the floor to pro- printed. evidence to change the outcome of the elec- vide an opportunity to respond to reso- f tion of Congresswoman Sanchez and is pur- lutions which, frankly, contain erro- suing never ending and unsubstantiated neous material, inflammatory mate- REPORT ON RESOLUTION WAIVING areas of review; and REQUIREMENT OF CLAUSE 4(b) Whereas, Contestant Robert Dornan has rial, material that simply ought not to OF RULE XI WITH RESPECT TO not shown or provided credible evidence that be presented on the floor of the House, CONSIDERATION OF CERTAIN the outcome of the election is other than in this gentleman’s judgment, in the RESOLUTIONS Congresswoman Sanchez’s election to the way in which it is presented. Congress; and I am quite pleased to announce to Mr. SOLOMON, from the Committee Whereas, as a member of Congress whose Members some developments that have on Rules, submitted a privileged report election in 1994 was won by far smaller a ma- occurred since the last time we were on (Rept. No. 105–383) on the resolution (H. jority than that which Ms. Sanchez won the the floor. If Members recall, I reported Res. 305) waiving a requirement of 46th District race in 1996. Whereas, as an immigrant myself who to them that in the months that they clause 4(b) of rule XI with respect to have outlined it has taken us to at- consideration of certain resolutions re- proudly became a U.S. citizen in 1972, I be- lieve that this Republican campaign of in- tempt to get to the bottom of this, I in- ported from the Committee on Rules, timidation sends a message to new citizens dicated to them that not one Democrat and for other purposes, which was re- that their voting privilege may be subverted. staffer had signed a statement of con- ferred to the House Calendar and or- We should encourage new voters not chill fidentiality. They had chosen not to dered to be printed. their enthusiasm. participate in a meaningful way in doc- f Whereas, the Committee on House Over- uments that we wanted to make sure sight should complete its review of this mat- REPORT ON RESOLUTION WAIVING ter and bring this contest to an end and now did not get out so that the charge that REQUIREMENT OF CLAUSE 4(b) therefore be it; they make falsely, that we were at- OF RULE XI WITH RESPECT TO Resolved, That unless the Committee on tempting to intimidate individuals, did CONSIDERATION OF CERTAIN House Oversight has sooner reported a rec- not get, quote-unquote, leaked. RESOLUTIONS ommendation for its final disposition, the I am pleased to say that all of the contest in the 46th District of California is key Democrat staffers, members of the Mr. SOLOMON, from the Committee dismissed upon the expiration of November 7, Democratic staff, have now signed on Rules, submitted a privileged report 1997. statements of confidentiality. That is a (Rept. No. 105–384) on the resolution (H. The SPEAKER pro tempore. The res- major step forward. I wish they had Res. 306) waiving a requirement of olution presents a question of the done it 9 to 10 months ago so we could clause 4(b) of rule XI with respect to privileges of the House. share the information that we know. I consideration of certain resolutions re- Pursuant to the rule, the gentle- will tell Members tonight, they are ported from the Committee on Rules, woman from Oregon [Ms. FURSE] will going to receive some of that informa- and for other purposes, which was re- be recognized for 30 minutes and the tion. ferred to the House Calendar and or- gentleman from California [Mr. THOM- But I think for just a minute or two, dered to be printed. AS] will be recognized for 30 minutes. we need to understand how we got here. f The Chair recognizes the gentle- There were phone calls to the Orange PRIVILEGES OF THE HOUSE—DIS- woman from Oregon [Ms. FURSE]. County Registrar of Voters. People MISSAL OF CONTEST IN 46TH Ms. FURSE. Mr. Speaker, I yield my- said they knew that people who voted DISTRICT OF CALIFORNIA UPON self such time as I may consume. were not citizens. There was a follow- EXPIRATION OF NOVEMBER 7, Mr. Speaker, in 1996, Congresswoman up examination by the election au- 1997 LORETTA SANCHEZ was elected by the thorities. There was sufficient and Ms. FURSE. Mr. Speaker, I rise to a people of the 46th Congressional Dis- credible evidence filed with the Orange question of the privileges of the House, trict of California. There was a re- County District Attorney for the Or- and I send to the desk a privileged res- count. The California Secretary of ange County District Attorney to sub- olution (H. Res. 307) pursuant to clause State confirmed that Congresswoman poena records of groups who were sup- 2 of rule IX and ask for its immediate SANCHEZ had won that election. Yet for posed to be educating documented consideration. over 10 months, the Republican leaders aliens in the process to become citi- The SPEAKER pro tempore [Mr. have used every tactic to deny Con- zens, the very process that the gentle- KINGSTON]. The Clerk will report the gresswoman SANCHEZ that victory. woman from Oregon indicated occurred resolution. Mr. Speaker, this is a Nation of im- to her. Of course, we know what hap- The Clerk read as follows: migrants. This is a Nation of people pened in her case. She did it in the Whereas, Loretta Sanchez was issued a cer- who came to the shores to participate. right order. She became a citizen, and tificate of election as the duly elected Mem- This is a Nation of immigrants eager to then she voted. ber of Congress from the 46th District of participate, eager to give their voice to The record shows that there were California by the Secretary of State of Cali- this great democracy. Mr. Speaker, I people in the 46th Congressional Dis- fornia and was seated by the U.S. House of understand this because I, too, was an trict who voted before they became Representatives on January 7, 1997; and Whereas A Notice of Contest of Election immigrant. I came to this country in citizens. There were many people who was filed with the Clerk of the House by Mr. 1972. I was proud to become a citizen did this on the advice of people who, Robert Dornan on December 26, 1996; and and proud to cast a vote in an election. frankly, chose to mislead these people November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10095 when they had the solemn responsibil- State on a valid voter registration, b 2145 ity of providing them with the enor- would not be completely accurate be- My colleagues, listen to this para- mous and wonderful opportunity of be- fore we would make any assumption, graph, listen to it well. This is from coming citizens. any determination, any statement the contestant under the Federal Con- I will make one promise to Members about a final number of people who, in tested Election Act. By copy of this tonight, that if anyone is discovered to fact, voted invalidly in the California letter to the contestee’s counsel, we have not voted properly, in no way 46th. Because I will remind all of us, it are advising the contestee that we con- should their citizenship be put in jeop- is not if there were people who voted il- sider contestant’s record to be com- ardy if after the fact they became a cit- legally, it is the question of how many, plete so that she may file her brief izen. I believe that we should make and that the pursuit of how many has within the time permitted by the act. sure that amnesty is provided to any- been made a difficult one by virtue of Even Mr. Dornan believes this case, one who may have technically broken agencies of this government unwilling from an evidentiary standpoint, is now the law, and especially if they broke to cooperate unless their records are at an end. Even Mr. Dornan’s counsel the law at the behest of others, because subpoenaed. says this case is at an end from his per- right now there is an ongoing criminal And for a number of people to use spective. investigation in Orange County that such terms as ‘‘a Republican campaign The chairman of the committee said will work its way through the grand of intimidation’’ when, unlike the in debate last week, or 2 weeks ago, jury and may, in fact, present us with former majority, we are trying to use last week I believe it was, and has reit- evidence before we are finished with California law to document, not some- erated today on the floor of the House, our task as to exactly what happened thing invented in the task force by a 2 that if we would only sign a confiden- for those who engaged in a criminal to 1 vote, we are trying to determine tiality agreement, we could get the conspiracy of voter fraud. with absolute accuracy who could and material. He reiterated that just now. Based upon that evidence, a con- who could not have legally voted, and My colleagues, no one on the major- tested election contest was brought to who did and who did not. ity side of the aisle, save only an affi- us, and we have pursued, although ar- Frankly, I am perplexed by your un- davit of confidentiality with respect to gued unconstitutionally, affirmed by a willingness either as a native-born citi- a particular deposition, no one on the district court, reaffirmed by an appel- zen or a naturalized citizen to not want majority side signed a confidentiality late court, that the process that we to know. I think it is important that if, agreement until October 27, 1997. Not- have been following is, in fact, accord- in fact, there is a significant amount of withstanding that, we were refused ac- ing to the statute. It seems, therefore, people who are not citizens who are ac- cess to information because we had not somewhat incredible to me that one of tually voting, we need to know now. signed a similar confidentiality agree- the whereases is that we have re- We do not need to shut this investiga- ment. That is the unfairness in this quested the agency charged with mon- tion down. We do not need to pull the case. itoring documented aliens in this coun- wool over the eyes of voters who now And I ask my friend from California try, the Immigration and Naturaliza- will not know whether their vote was in particular, if he will listen, because tion Service, to assist us to determine canceled out by someone who should I respect his judgment and his fairness, if these individuals are, in fact, citi- not have voted. Frankly, our goal as I do others on this side of the aisle. zens. But, in fact, as Members may should be the one stated by the gentle- So Mr. Dornan has said, I am know from our previous discussion, the woman from Oregon: Become a citizen through, finished, it is time for Ms. Department of Justice was unwilling to first, and vote second, not the other SANCHEZ to file a reply brief. Mr. Dor- cooperate in the investigation. We were way around. nan has not filed, interestingly enough, forced, on May 14, to subpoena the Mr. Speaker, I reserve the balance of his own brief required under the Fed- records. It was not until June 23 that my time. eral Contested Election Act. My suppo- the Immigration and Naturalization Ms. FURSE. Mr. Speaker, I yield 81⁄2 sition is that he believes a brief is not Service began responding to us. minutes to the gentleman from Mary- required by him. My further suppo- Notwithstanding the whereas that land [Mr. HOYER]. sition is because he believes that com- says that the INS has complied with Mr. HOYER. Mr. Speaker, I thank mittee is now carrying the case. the committee’s request, the gentle- the gentlewoman for yielding me this I want to bring to the attention as woman from Oregon needs to know time, and I thank her for her time. well, because the chairman is very con- that that whereas is simply wrong. The I ask those on both sides of the aisle cerned about accurate information, INS has not complied completely. to listen to what I have to say and re- that the chairman indicated that there There are hundreds of records that are call that I said that I did not believe have been many cases that have gone still out that have not been presented that this matter was being handled on longer than this. My colleagues, no to the task force. fairly. Let me read to Members a letter case, and there have been 28 of them, in As we go through once again in terms dated October 22, sent to the Clerk of the history of the Federal Contested of the whereases, the one that I hope the House, which to this very hour the Election Act, has gone longer than this we will put to rest tonight, and the minority has not yet received, but one if we do not resolve it before we ad- gentleman from Michigan, the chair- Members will find it interesting. That journ in committee. man of the task force, I believe, will letter is on the stationery of Hart, There have, in fact, been cases which provide more than adequate material King and Coldren, a professional law have been carried over and disposed of to discredit once and for all, our goal, corporation. They represent Mr. Dor- on the floor. In fact, the Rose case was of course, would be to enlighten and to nan. Mr. Dornan, under the Federal held for almost a year between the therefore not continue the process of Contested Election Act, is the contest- time under the 104th Congress when the repetition on the whereas that says ant in this case. We have lost sight of committee disposed of the case and that we failed to present credible evi- the fact that the act requires the con- when the committee brought it to the dence. Tonight Members will receive a testant to carry the case, not the com- floor for final disposition, which was, substantial dose of credible evidence. mittee. of course, at that point in time non- But more important than that, I find In any event, Mr. Speaker, this is a controversial. No case in the history of it difficult for someone who was a citi- three-page letter in which it sets forth the Federal Contested Election Act has zen, whether naturalized or native 14 items that have been forwarded to gone longer than this one if we do not born, to think that the effort to make the committee. The minority has not dispose of it by the date we adjourn sure that we are accurate, double- yet received it. They are depositions this first session of this Congress. check, triple-check if necessary that that should have been forwarded to the My colleagues, this case, according no citizen is accused unfairly and that committee months ago by the Dornan to Mr. Dornan, is ready to close, and I the documents of the task force counsel. Custodian of records, Fidelity suggest to my colleagues that Mr. Dor- checked by the appropriate officials, Federal, dated 3/24/97, 3/25/97, 3/27/97, 3/ nan has not filed a brief because he Immigration and Naturalization Serv- 31, 4/14, 5/28. These are not newly ac- knows that he has not done what is re- ice on citizenship and the Secretary of quired records by the Dornan case. quired under the statute, showed that H10096 CONGRESSIONAL RECORD — HOUSE November 5, 1997 but for certain factors occurring, he our party controls the House now. The in the company and comity of the gen- would have been elected to Congress. reality was, there was a gentleman who tlewoman from California [Ms. That simply has not occurred, and hav- came to this body with a certificate of SANCHEZ]. It is not pleasant to dwell on ing not occurred, the committee has election. He was denied being seated. the misfortunes of this case, but this not brought to this floor any request to They counted the votes in his district issue speaks directly to the integrity of take action to dispose of this case under the rules created by the task this institution which we should all based upon Mr. Dornan’s making that force on a straight partisan vote, and strive, and strive hard, to protect. case. he was denied his certificate of elec- There is a constitutional responsibil- Now, my colleagues, there is a ques- tion. That is what happened under my ity of this House to judge the qualifica- tion which the gentleman from Califor- colleague’s majority. tions of its Members, and that of nia [Mr. THOMAS] raises. There is no- Under our majority, the gentle- course includes judging the outcome of body on this floor who either sanctions woman from California [Ms. SANCHEZ] contested elections. While this task is or wants to hide the fact that voters had a certificate. She has been seated. not a pleasant one, it is one that re- may have voted without being citizens She is a full Member of this body. She quires serious attention and thoughtful and may have voted illegally. That, in has a full staff. She has a full budget. deliberation as our decisions set impor- and of itself, is worthy of an investiga- She carries out her duties every day. tant precedents about the legitimacy tion, but it is clearly a much broader Rick McIntyre would have loved to and integrity of the Federal elections investigation than the case that Mr. have an opportunity to be treated the and the laws which govern them and Dornan brought against the gentle- same way. each and every one of us here in this woman from California [Ms. SANCHEZ], And I will not yield. I will also say body. the sitting Member of Congress from that I admire the gentleman’s clever- We will hear plenty of impassioned the 46th Congressional District. ness and his capability. He seems to debate today that will be driven by pol- So that, in fairness, I say it is time think that it is important that mem- itics and influenced by personalities, to end this case. Mr. Dornan, in his let- bers of the majority signed a confiden- but this is not about personal attacks, ter of October 22 through counsel, says tiality statement on October 27. We and it is not about personalities, it is he is through. But it is now Ms. were working on our work product. We about obeying the law and fulfilling SANCHEZ’ chance to reply, but she has had full confidence we were not going our constitutional responsibilities. very little to reply to because Mr. Dor- to leak our own material. Leaking the Are my colleagues who have repeat- nan has not made his case. names of people we were checking edly asked us to put this matter unre- I would ask the Members of this would have worked against our pur- solved behind us really advocating House, as they reflect upon this case, poses of keeping things confidential. turning a blind eye to voter fraud? Are think of themselves. Each and every Once we agreed to a memorandum of they really suggesting that non-U.S. one of us could be in the same situa- understanding with the secretary of citizens should be allowed to vote in tion. Each and every one of us could state when he said he was willing to elections and in the same breath de- have the opposite party being in con- sign it, our work product would no manding campaign finance reform in trol of the House and a contestant longer be protected by us alone. So as the interests of honest elections? coming forward and saying, I have cer- a gesture, we said, let us all sign a con- Mr. Speaker, I respectfully suggest to tain suspicions, certain allegations fidentiality statement. my colleagues that we should spend that I will file, but in 12 months, essen- And so the gentleman’s remarkable our energy enforcing the laws we have tially from November of 1996 until No- observation that once the product went at hand. The law of our land, the law vember of 1997, I have not been able to outside the committee’s jurisdiction, we are bound constitutionally to obey make my case. we asked them to do no more than and enforce, that is what this debate is Think, if my colleagues were in that what we did, signing the confidential- about. Inflammatory rhetoric that situation, if they would not expect ity statement somehow became a re- evokes images of racism and discrimi- their 434 colleagues to say under those markable point to the gentleman. I nation, that is transparent. It does a circumstances it is time to end this think it would be common business. disservice to this institution and to the case, it is time to dismiss the contest- The gentleman also pointed out that American ideal of free and fair elec- ant’s action because he has not, as re- this may be the longest contested elec- tions. quired by the statute, made his case. tion under the act. My colleagues In the interests of protecting our Na- If our oath means something, to de- might recall that the act was passed in tion’s great democracy, I urge my col- fend the Constitution, it clearly means 1969. Most of the cases were dismissed leagues to fulfill their responsibility to that we should defend the right of each without ever looking at the question of protect the sanctity of American elec- district to elect a Member and to have fraud. This task force was presented tions by demanding a thorough and that election sustained unless it is with a criminal conspiracy case involv- honest investigation of this and all shown, pursuant to law, that but for ing ongoing and clear evidence of contested elections. Nothing less will certain things happening, the election fraud, and we are pursuing that based bring credit to this House. would have turned out differently. upon the election. Mr. Speaker, I urge defeat of the res- I would hope that all of us would The gentleman says that the filing olution. come to a conclusion and urge the com- by Dornan’s attorneys that they are b 2200 mittee to end this matter, to move on, through means that the whole case to say to the voters in the 46th District would be through. What happens in the Ms. FURSE. Mr. Speaker, I yield 21⁄2 there will be an election shortly, Mr. courtroom when the case is presented minutes to the distinguished gentle- Dornan says he is going to run, that and the jury then goes to deliberate woman from Connecticut [Mrs. KEN- election will be contested. I believe the and has every right to ask for addi- NELLY]. committee should and will continue its tional information as they make the Mrs. KENNELLY of Connecticut. Mr. investigation into any wrongdoing. decision? The gentleman believes that Speaker, I rise in support of the privi- Clearly, the district attorney is doing we should have half a case and then leged resolution and urge the House to that; clearly, the secretary of state is stop it before the opinion is rendered. consider it favorably. doing that; they are the appropriate Mr. Speaker, I yield 3 minutes to the The investigation undertaken by the authorities. gentlewoman from Ohio [Ms. PRYCE], majority on the Committee on House Let us bring this case to close and who also happens to be a judge. Oversight has been long drawn out, and bring it to a close now. Ms. PRYCE of Ohio. Mr. Speaker, I I think it is really long past due when Mr. THOMAS. Mr. Speaker, I yield thank the gentleman for yielding this it should be decided. It is exactly a myself such time as I might consume. time to me. year since LORETTA SANCHEZ won a I would tell my friend from Maryland Mr. Speaker, I rise in opposition to tough, close election in California. It is [Mr. HOYER] that we can make a com- the privileged resolution before us. Let now almost exactly 9 months since she parison between the time when his me start by saying that there are few was sworn in in this body, in this very party controlled the House and when in this body who do not take pleasure Chamber, and it is a little more than a November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10097 year before she will face the voters of The SPEAKER pro tempore. The gen- ber. The margin of the election. 984 the 46th District of California again. tleman will state it. votes is a certified margin, but the re- Mr. Speaker, the women are coming Mr. HOYER. Mr. Speaker, I raise the count actually was a 979-vote margin. before this body tonight with these point of order that under the rules of The Secretary of State does not in privileged resolutions to say, justice the committee, at the request of the California change the certificate to re- delayed is justice denied, and justice committee, we have signed confiden- flect the recount total, but the actual has been denied, but let me talk about tiality agreements. I have not disclosed margin of election was 979. how it has been delayed. any information which I have received The Registrar of Elections of Orange LORETTA SANCHEZ was elected to the that was confidential information. The County, conducting her own investiga- office that she took the oath and was Chairman now says that confidential tion of the election, discovered 124 sworn in in this very body, and all she information is going to be disclosed be- fraudulent absentee ballots using the wanted to do was to serve her constitu- cause the agreements have been signed. standard measures under California ents, to use the talents that attracted I am not sure I understand that, and law for determining which absentee her constituents to vote for her, and whether from a parliamentary stand- ballots are fraudulent, and also under yet, since she has been here, she has point confidential information is ap- California law subtracting them from been constantly having to face mo- propriate to be disclosed on the floor of the total. tions, legal motions, legal bills, legal this House. We cannot have it both The California Secretary of State re- questions and all she wants to do is ways, Mr. Speaker. ceived information from Hermandad, serve her constituents. The SPEAKER pro tempore. The the organization that has been men- But, Mr. Speaker, under the Con- Chair is not able to rule at this point if tioned before, through the Orange stitution of the United States of Amer- any information is available or not County district attorney, indicating ica, this House of Representatives has available as taken in executive session. 1,163 individuals, and I am sorry I did the sole authority to be the judge of its The gentleman from Michigan (Mr. not write that number down, 1,163 indi- own elections, and there is no credible 1 EHLERS) is recognized for 9 ⁄2 minutes. viduals who had gone through citizen- evidence before us at this point to sug- Mr. EHLERS. Mr. Speaker, I do not ship classes at Hermandad. gest that Ms. SANCHEZ does not win her plan to discuss confidential informa- That is not necessarily the complete election to this House, and that the tion which would be from the INS, such list, because the Orange County Dis- House was incorrect in swearing her in as names and issues such as that, but I trict Attorney was not specifically on that day that we all were sworn in. do want to share with the body some looking for that information, but that Yet, now we find out that the House numbers, numbers which the gen- is the information they received when Committee on Oversight wants to send tleman from Maryland is familiar with they went in and seized the records. volumes of information back to Cali- from the work of the task force since There are other records they did not fornia to the very Secretary of State he has received most of this informa- seize. We would like to see those that certified that this woman should tion. These are going to be very ap- records; they have ignored subpoenas be the Representative. proximate numbers, but I felt it impor- Today, Mr. Speaker, we went to see up to this point, and we simply do not tant to deal with that, and also to give the Speaker of the House, the gen- have the information. a little bit of history of what the task From those 1,163, with the aid of the tleman from Georgia [Mr. GINGRICH], force has done. I have given partial his- Los Angeles district office of the INS, and we talked to him about what we tories in past debates on this issue, and 305 have been identified as noncitizen were about, what the women of this I will try to deal with some of the ques- Congress are about, that we just want- voters in Orange County, so add the 124 tions that have been raised since then. ed to have this woman, who has been and the 305, those are rock-hard certain First of all, it is important to recog- under this huge problem for a year voters who are noncitizens. nize that the Committee on House At that point the Director of the INS now, that she should be sworn in, and Oversight and our task force did not in Los Angeles was told by his superi- the Speaker spoke to us about prob- choose which election to be involved lems in the law, in the Federal law. ors in Washington to no longer cooper- in. That decision is made by the con- The Speaker spoke to us about prob- ate. That was in late March, early testant who files the notice of contest, lems in the State law, the law of Cali- April. We then asked the INS for as- fornia. The Speaker spoke to us, as he and that was Mr. Dornan in this case. sistance so that they would furnish the always does, with brilliance, and he Mr. Dornan, as has been observed, filed materials to the California Secretary was erudite and he did all this good many charges as part of his notice of of State. We were refused. We then had conversation, but what we said to him contest. We have investigated that. We to subpoena the INS records, which we is, it takes a long time to pass a law in found that many of them did not have did, and there was all together approxi- this House, a long time to pass a law in a strong basis and were not factors in mately 3 months delay as a result of California. All we are asking for is jus- the election, and so we have put those their decision to cut off the assistance tice for this woman. Please, Mr. Speak- aside. they had been providing. er, let her go about her duties; pass the The largest issue that did emerge, As the committee tried to develop a legislation necessary. however, is a question of fraudulent list of potential noncitizen voters, the Mr. THOMAS. Mr. Speaker, it is my votes by noncitizens, and that deserved initial list was approximately in the pleasure to yield 91⁄2 minutes to the greater study. neighborhood of 6,000. That included a gentleman from Michigan [Mr. Now, the problem developed with list from the INS, a computer match of EHLERS], chairman of the task force, to that, which I will get to in just a mo- the Orange County voters versus the in part respond. Now that both sides ment, that midway in the investigation records of the INS of individuals where have signed confidentiality state- as Mr. Dornan and the California Sec- they matched the first name, last ments, this information will probably retary of State were pursuing that, name, date of birth. be made available, and we would like suddenly their source of information in This also includes a list from the Or- to be the ones to make it available. the INS was shut off, and that has cre- ange County Registrar of Voters and (Mr. EHLERS asked and was given ated a good deal of the delay that we other officials there of individuals who permission to revise and extend his re- are discussing tonight. Furthermore, had refused to accept jury duty because marks.) as everyone knows from previous dis- they checked off they were noncitizens, Mr. HOYER. Mr. Speaker, will the cussions, a number of the subpoenas but yet they had voted. This also in- chairman yield? I am not sure I under- were not responded to. cluded individuals who had voted, but stand. Now, I have, just for graphic pur- there were border crossing cards on The SPEAKER pro tempore (Mr. poses, and I apologize for the poor qual- record for them in which it was clear KINGSTON). The gentleman from Michi- ity of this, I am an X professor and I that they had been born in another gan controls the time. am used to working with materials at country, and their citizenship could POINT OF ORDER hand and not hiring people to prepare not be verified with the INS. Mr. HOYER. Point of order, Mr. fancy displays suitable for this audi- So this is the gross number, greater Speaker. ence, but several numbers to remem- than 6,000. Out of that, we culled down H10098 CONGRESSIONAL RECORD — HOUSE November 5, 1997 approximately 4,000 that looked very ing with malice, we are not proceeding What did the INS tell the chairman seriously as if they could be nonvot- in an effort to be unfair; we are trying of the committee and the Congress ers—pardon me, noncitizens who had our very, very best to look at these when it was first asked for these num- voted. numbers which are very, very substan- bers? And, by the way, these are not all Now, much has been made in the res- tial numbers and verify as precisely as the numbers they have. They started olutions that have been presented here we can what the actual numbers are, off with half a million suspects in a dis- over and over about this delay and no and then we will discuss them with the trict where 100,000 people voted. The credible evidence. This is credible evi- committee; we will discuss them with INS said, you cannot use our files to dence. Why the delay? Because we have the House of Representatives, and a de- verify voters. But even if we look at been going through very, very care- cision will be made as to the final re- their numbers down to that final thou- fully, and what we have to verify is sult of the election. That is our respon- sand, from that we cannot tell whether that indeed, the individuals in the INS sibility as Members of the task force. that final thousand voted for SANCHEZ records and the individuals in the Or- Nothing more, nothing less. or Dornan. The law says we have to ange County records are, in fact, one There are many other issues that prove it would change the outcome. and the same, and so that has allowed have emerged from this. Others have I cannot give Members the names, ei- us to narrow down the list. registered concerns about targeting ther, but let me tell the Members, Something else we had to verify. Are and this sort of thing. We do not look there is a Mrs. Jones here. It is a Span- the INS records accurate? When they at those issues; we are simply looking ish surname, instead of Jones. There indicate that someone is a citizen or a at the votes that were cast in trying to are 18 of them in the INS records. Mrs. noncitizen, is there some verification identify which votes were fraudulent. Jones exists 18 times in the INS for that? We have to depend on the Now, let me add one more point. The records. Yes, there is one Mrs. Jones in INS, but we have had them go through difference between this case and what the voting list that did vote. Now, Mrs. and do a search of their records, and we makes it different from previous cases Jones might have voted wrong once, keep searching and keep trying to find that the House has frequently dealt but she could not vote wrong 18 times, the most accurate record we can. The with is that the fraud in this case is because there are not 18 times Mrs. minority has also been helpful in this. different. In most previous Congresses Jones’ name is on that list. They took another search approach, when the Congress has dealt with Let me tell the Members something. and the information that they came up fraud, it has been deliberate fraud, or- This may be about a lot of things. It with has been included. ganized fraud, large blocks of votes. could be a vendetta. We keep hearing So notice the number has been That is not true in this case. about the Indiana case. I am happy to shrinking, greater than 6,000, then I think this is not deliberate fraud, argue the Indiana case in a separate greater than 4,000, greater than 2,000, except perhaps on the part of venue. But let me tell the Members, if approximately 1,000 at this point. Actu- Hermandad, we have to determine that it is the Indiana case that is going to ally, the number is larger, but I do not later, but certainly not on the part of drive the majority, we will make want to claim any larger number at the individuals voting. I think they Bosnia look like a picnic. They take this point, and we are still working on were misled. We are dealing with indi- one, we will take one; next year we will it, trying to finalize as closely as we viduals who honestly thought they challenge everybody, and we will get can. were doing the right thing. Neverthe- the INS in everywhere. In addition, we recently asked the less, if the votes are fraudulent, that Mr. Speaker, when we get sensitive California Secretary of State for as- must be dealt with. to the attack on the basis that we keep sistance, because we want independent I thank the Speaker for the time to raising the Hispanic issue, excuse me? verification of these numbers. Roll Call present this, and I ask the indulgence The record of their party makes the Newspaper erroneously said we were of the House as we continue to wrap statement very clearly. turning the issue over to the California this up, I hope as soon as possible, and Mr. Speaker, I will close with this. In Secretary of State. Not true. We are as accurately as possible. 1980 the Republican Party went to New simply asking them to review what we Jersey, and it dressed people up in po- b 2215 have done and to verify that it is accu- lice officers’ uniforms, and they used rate. Ms. FURSE. Mr. Speaker, I yield 4 ballot security police to intimidate I also want to make it clear that con- minutes to the gentleman from Con- new citizens and poor people from vot- trary to charges that have been made necticut [Mr. GEJDENSON], a Member of ing. In the 1990s in California, the Re- on the floor, and to which I take con- the committee. publican Party paid a $400,000 fine for siderable offense, we have not targeted Mr. GEJDENSON. Mr. Speaker, I can the same kind of Gestapo tactics at the Hispanics or Latinos. We have never frankly only remember one other simi- polls. once asked for any records specifying lar instance, when a Senator from Wis- Now, once again, we have the gentle- that we want those with Hispanic or consin held up a list of 120 suspects in woman from California [Ms. SANCHEZ]. Latino names. We are not targeting the State Department, and somehow We have a list of people here. We have women in this race. We are not includ- they were disloyal to the United numbers. That chart is about as graph- ing illegal immigrants, which we prob- States; never got any names, we never ic an example of the phony arguments ably should do if we could get a handle found any agents in the State Depart- on the other side as we can find. If they on that, and the California Secretary ment, but boy, he had numbers out had a thousand names, they would of State is looking at that independ- there and he was waving them around. bring them out here. What they are ently. But there is a whole group of in- What they have done here today is doing is dragging this lady through the dividuals who are not included in this they cannot tell us the names because mud. They are trying to break her fi- examination, that is the illegal immi- they are secret. Let me tell Members, nancially. They are trying to break her grants, simply because the INS has no the chairman of this committee has an spirit. But I have news for the Mem- record of them. If they are illegal, they obsession with secrecy. He tried to bers, she is getting stronger. do not sign up with the INS. make the public minutes of a meeting The country is not going to put up The gentleman from Maryland [Mr. secret at one of our first meetings, and with reviewing elections for longer HOYER] has made a point that Mr. Dor- astounded, frankly, all of my staff. than the term of office the individual is nan says he is finished. He has submit- We have come here today once again elected to. We are going a year after ted his evidence. That is fine, but all of back exactly where we started. They her election. She has won by more us know that when we go into a court have never before used the INS to votes than the Speaker of this House of law, when we finish the case, it is check for election results. Why? One, won by when we were in control. Leave not over. The jury has to deliberate, we have never had an Hispanic woman her alone. Let her do her job. and we perform the function of the we were looking at. So when we are Mr. THOMAS. Mr. Speaker, I yield jury. dealing with other ethnic groups of myself such time as I may consume. The point is simply we want to com- this country, we do not think of going Mr. Speaker, I want to thank the plete the analysis. We are not proceed- to the INS. gentleman for his crosscheck with the November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10099 INS. Apparently his request he believes tion. This is why we must complete been here, and we as a community will to be more accurate than our request. this investigation. We must, in order to not tolerate it. Where we found citizens, for example, restore the honor of our system, deter- Ms. FURSE. Mr. Speaker, I yield 2 Mrs. Jones was removed, where we mine the extent of the corruption. minutes to the gentlewoman from found duplicates, they were removed; Ms. FURSE. Mr. Speaker, I yield 2 Florida [Mrs. MEEK]. where we find a Jane A. Jones with a minutes to the gentleman from New (Mrs. MEEK of Florida asked and was date of birth that matches, first name, Jersey [Mr. MENENDEZ]. given permission to revise and extend last name, middle initial, date of birth, (Mr. MENENDEZ asked and was her remarks.) with the same address on the INS given permission to revise and extend Mrs. MEEK of Florida. Mr. Speaker, I records as on the voted list, we are his remarks.) have been wondering, what triggered pushing it to that level and beyond for Mr. MENENDEZ. Mr. Speaker, the the Republican Party to initiate this accuracy. Those are the numbers that gentlewoman said she is lucky to be broad-scale investigation, spending the gentleman presented us. from a State that does not see voter thousands of dollars? I thought, is it It is my pleasure now to yield 4 min- fraud. I am unlucky to be from a State their conservative nature? If so, they utes to the gentlewoman from Wash- that has seen the Republican Party be have contradicted that with spending ington [Ms. DUNN], a State which has a part of voter suppression and intimida- thousands of dollars for this cause in procedure on their voting records, their tion that ended up in the Federal court which they have no ending. This is an Registrar of Records, which I wish the decision that is still continuing in elec- unending cause. Nation would emulate. tions in New Jersey. And I thought, are they trying to Ms. DUNN. Mr. Speaker, I rise in op- The gentlewoman from California protect the sanctity of the Republican [Ms. SANCHEZ] is unlucky to be from a position to the privileged resolution on Party? I have no answer to that one. State where the Republican Party paid the floor. Is it their dogged determination to $600,000 to settle two voter intimida- Mr. Speaker, I am lucky to be from a bestow some honor to a verbose can- tion lawsuits stemming from actions in State that has so far experienced little didate who lost in a district that he 1988 and 1989 in which the Orange Coun- or no voter fraud. Lord knows, if any had been winning in for quite a long ty Republican Party placed security fraud were to occur in any of our elec- time, with some nontraditional voters guards and signs at the voting polls de- tions in Washington State, we would be going against him? signed to scare Latino voters from vot- very quick to staunch it and make sure It was time for him. It was his time. we had a process in place never to ing. That is the fact. So when the gentleman before men- When my time comes, I am going to allow it to happen again. That is, Mr. tioned about transparency, trans- take it like a woman. If I lose, I am Speaker, why I have so many questions parency is that the history on the going to take it like a woman. I am not about the issue before us this evening. records, in the Federal court, has con- coming to Members asking them to in- Why would anyone want to end this demned their party for what they have vestigate somebody because CARRIE election fraud investigation before the done to my people. That is the reality MEEK lost. I am strong. I do not have facts are in? Why have the Democrats of that transparency. to come to them. They would make me resisted the establishment of prece- I just listened to the gentleman from to be some kind of icon, with all these dents that will ensure that future con- Michigan [Mr. EHLERS], who I have a kinds of verbose statements about me, tested elections will be investigated personal respect for, but I listened to making me so grand, like I am some thoroughly and efficiently? Why have what he had to say. His facts and his Oracle at Delphi. That does not happen they challenged the constitutionality figures, we have gone from 500,000 ques- here. What happens here is we work of the Federal Contested Elections tionable voters to 1,000, in his final hard. If we win, the people, if they Act? Why do they not want a process number there. What an incredible want us there, they will send us back. that allows the contestee and the con- amount. Members can contest these little testant to get at the truth? And when we look at it, he keeps re- votes if they want to, but I will tell the Why are they not eagerly supporting ferring to Orange County voters. He Members what image they are sending a process that allows State and local fails to mention that there are six con- to this country. The image and the officials to verify the legitimacy of gressional districts in Orange County. message they are sending is Hispanic, registrations? Mr. Speaker, why not The gentlewoman from California [Ms. woman, ethnicity. I do not care how find out exactly how many persons are SANCHEZ] is not the only congressional Members do it, how they cloak it in illegally registered in the 46th District district in Orange County. They all fail their numbers, that is the image that of California? Why would anyone want to mention all of the Republic can- they are sending throughout this coun- to leave a single illegal voter on the didates that won, and they do not ques- try. Think about it: Hispanic, woman, voting rolls of the State of California? tion their elections at the same time in someone who cannot take a beating. Mr. Speaker, during our last debate which they allegedly received these That is the message they are sending. the gentleman from New Jersey [Mr. votes. I say to the Members, they had bet- MENENDEZ] commented that this af- The fact of the matter is that for ter clean this act up, because every fects more than just the Federal elec- those Members who get upset about woman in this country is watching tion. He is exactly correct. That is our concerns that what they are doing them. I did not come here because I am what is so disturbing about the Demo- is clearly based on the question and to a Democrat, I came up here because I crats’ position in this case. Fraudulent a large degree on ethnicity, I cannot think the gentlewoman from Califor- voters jeopardize the legitimacy of all wait for the names to be revealed. I nia, Ms. LORETTA SANCHEZ, has been the elections, up and down the ballot, want to say how many Thomases, how given a short shrift. She has been given all across California and many other many Ehlers, how many Smiths are on a short shrift, I do not care what party States. We need to do something about that list. she is, even if she is in Ross Perot’s that, and we need to start by complet- I can guarantee Members that when party. ing this investigation. we see the list, when it finally shows I am saying, clean this stuff up. Stop Mr. Speaker, I want to recall the the light of day, everything that we worrying about it and let this woman words of Democrat President Grover have said there will be very clear. That take her seat. Cleveland, who, in his first inaugural is why their party has been sanctioned, b address, stated ‘‘Your every voter as that is why the Federal courts have 2230 surely as your chief magistrate exer- made them pay money, and that is why Ms. FURSE. Mr. Speaker, I yield 11⁄2 cises a public trust.’’ That is what this they are pursuing this case in the man- minutes to the gentlewoman from is about, public trust in our democratic ner in which they have. They have Michigan [Ms. STABENOW]. process. gone from a half a million to a thou- Ms. STABENOW. Mr. Speaker, on We have an honor system of voting in sand, and they cannot even prove that January 7 of this year, I was honored our Nation, and that honor has been will overturn the election. to enter this body as an incoming desecrated by any person who casts an Yes, they have seated her, but they Member with over 70 new Members on illegal ballot in this or any other elec- have bled her every day that she has both sides of the aisle, including the H10100 CONGRESSIONAL RECORD — HOUSE November 5, 1997 gentlewoman from California [Ms. What you are doing here is wrong. woman from Washington may not SANCHEZ]. A number of the incoming You cannot defend it. It is absolutely know, there is a district attorney of freshmen won by very small numbers wrong and we should be ashamed of Orange County investigating this case. of votes, many fewer votes than the this charade that is taking place in That investigation is before the grand number that LORETTA SANCHEZ won by. this House. This gentlewoman won fair jury and ought to continue. The Sec- Yet after one year and almost a half a and square. Every Member of this retary of State has a responsibility to million dollars of taxpayers’ money House received a certificate from the ensure voter integrity on the rolls. He being spent on an investigation, we Secretary of State congratulating us is continuing his investigation. have nothing to show for it of any con- for being elected to the people’s House, The judge from Ohio said this always crete evidence, just a lot of hyperbole the United States Congress. They sent happens. It never happens. at this point. everybody a certificate. They sent the Mr. Dornan has said his case is over. The question that I have for the gentlewoman from California [Ms. He has rested in effect. The jury is other side of the aisle is that if, in fact, SANCHEZ] a certificate. never allowed to get additional evi- there are 1000 people who chose to vote Now you have sent back to Califor- dence, never. What kind of law do you who should not have voted in this elec- nia, to this same guy that gave this practice on that side where the jury tion, they did not just vote for a Con- certificate to Ms. SANCHEZ, it says, you can say, well, I know the two parties gresswoman or vote for the Congress- have to check on this some more be- have rested but we are going to get ad- man at that time. They voted for local cause we cannot find anything here. ditional evidence? It never happens, my officials. They voted for a State rep. Our witch-hunt is over. friends, never. They can ask to review They voted for a State Senator. They It is time to stop this because it is existing evidence; that is true. But voted for local ballot initiatives. not right. they cannot go out and seek new evi- Why is it that the only question, the Mr. THOMAS. Mr. Speaker, I yield dence. only challenge, the only investigation myself 15 seconds to assist the gen- Mr. Dornan says this case is through. is on the only Hispanic woman sitting tleman in his math. The 1000 number It is time for the parties to decide. The here, Ms. SANCHEZ? What about those were those that achieve a very high fact of the matter is, these figures put other seats? What about challenging level check through the INS. The forth by the gentleman from Michigan those other kinds of races? We do not chairman failed to mention the 124 [Mr. EHLERS], nobody knows. The gen- hear anything about that. We hear that the registrar has already discov- tleman from Michigan [Mr. EHLERS] only about harassment of a woman who ered, the 305 that the LA INS and the put up some figures, 979, that is the is serving her district well. It is time Secretary of State have certified and most important figure. That is the ma- to stop it. the more than 1000 that were currently jority by which LORETTA SANCHEZ was Ms. FURSE. Could the Chair inform going through with the INS. Frankly, elected to this House. us of the amount of time on each side? the number is far beyond the state- He then gets down to other figures, The SPEAKER pro tempore [Mr. ment I have heard repeated over and 6000. That has less, I tell you, than 500 KINGSTON]. The gentlewoman from Or- over again of a number which simply is who possibly could be considered in the egon [Ms. FURSE] has 6 minutes re- not creditable. 46th district. I do not even know why maining, and the gentleman from Cali- Mr. Speaker, I yield 30 seconds to the that 6000 was on that board, because fornia [Mr. THOMAS] has 31⁄2 minutes re- gentleman from California [Mr. HUN- they are not involved in the 46th dis- maining. TER]. trict, all of them, some are. Ms. FURSE. Mr. Speaker, I yield 2 Mr. HUNTER. Mr. Speaker, let me The fact of the matter is, however, as minutes to the gentleman from North just say to my friend who just spoke, 60 the gentleman from Connecticut point- Carolina [Mr. HEFNER]. percent of the votes that were counted ed out, nobody knows or will know for (Mr. HEFNER asked and was given that were registered by one organiza- whom those folks voted. We do know permission to revise and extend his re- tion had been found to be fraudulent by this: that over a third of those people marks.) the Secretary of State. We have not are Republicans, about 15 percent are Mr. HEFNER. Mr. Speaker, earlier got all the votes. There is not a single other independents, not affiliated. Only today I asked unanimous consent to Member in this House who, if that hap- half are Democrats. It is time to end address the House out of order for two pened to them and one of the organiza- this case. minutes, and it was objected to by the tions registering and voting people had The SPEAKER pro tempore. The gen- chairman of the Committee on Rules. 60 percent of their voters found to be tlewoman from Oregon [Ms. FURSE] has Let me just say this, sitting here fraudulent, would say, let us drop the 13⁄4 minutes remaining, and the gen- with some interest, you have 1000 votes investigation. Let us leave it. tleman from California [Mr. THOMAS] here that are on a chart, and you are Mr. Dornan is having just as tough a has 23⁄4 minutes remaining. assuming that LORETTA SANCHEZ got time with this delay and the gentle- The gentlewoman from Oregon [Ms. every one of those votes, no names, woman from California [Ms. SANCHEZ] FURSE] has the right to close. 1000 votes. From 500,000, you have come is. We want to have it over, but we owe Mr. THOMAS. Mr. Speaker, I yield to 1000 votes. Is that not remarkable? it to the people to finish the investiga- the balance of my time to the gen- And there is nothing on that list, ac- tion. tleman from Texas [Mr. ARMEY], ma- cording to what you insinuate, there is Ms. FURSE. Mr. Speaker, I yield 10 jority leader, who happens to be part of nothing on that but Hispanic voters seconds to the gentleman from North the jury that constitutionally is the that voted illegally. Carolina [Mr. HEFNER]. sole judge of its Members. When you Listen, what we are doing here to- Mr. HEFNER. Mr. Speaker, to my have the constitutional power to judge, night and what you are doing here to- friend from California, I would only say you have the right to get all the infor- night, Mr. Speaker, is wrong. this, there were other elections, there mation. Let me just say this to you, I was were other people that were on the The SPEAKER pro tempore. The gen- here when the Indiana situation came same ticket as Mr. Dornan and Ms. tleman from Texas [Mr. ARMEY] is rec- about. It might have been wrong. Dur- SANCHEZ. And you are not questioning ognized for 23⁄4 minutes. ing the last campaign Republicans the validity of those votes that went to Mr. ARMEY. Mr. Speaker, I thank campaigned all over this country and those people. They are not being con- the gentleman for yielding the time to they said, the Democrats have been in tested. The numbers are all being me. charge for 40 years and we are not taken from Ms. SANCHEZ’ total votes. We have 22, I believe, filings of privi- going to run this House like the Demo- Ms. FURSE. Mr. Speaker, I yield 2 leges of the House on this same sub- crats did. The chairman of the Com- minutes to the gentleman from Mary- ject. This, Mr. Speaker, is number one mittee on Rules stood in this well when land [Mr. HOYER]. of those 22 that must be dealt with he was in the minority and said, when Mr. HOYER. Mr. Speaker, I tell the today under the rules of the House. we get to be in charge, we will not have gentlewoman from Washington State, Twenty-two today, I think some eight closed rules and we will not run this nobody wants this investigation to go filed that would come due tomorrow, House like the Democrats. away or to end. In fact, the gentle- and another eight or so to do the other. November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10101 I am sure that represents, on behalf of supporters. Enough of this waste of Fossella LaTourette Rohrabacher Fox Lazio Ros-Lehtinen an awful lot of Members doing all that taxpayers’ dollars. Eleven months, a Franks (NJ) Leach Roukema filing, a statement. half a million dollars, and we are still Frelinghuysen Lewis (CA) Royce But I have to tell my colleagues, I counting. Enough with the attempts by Gallegly Lewis (KY) Ryun weary of it. I weary of the shouting. I the Republican Party to intimidate Ganske Linder Salmon Gekas Livingston Sanford weary of the accusing. I weary of the Hispanic-American voters, an 8-year Gibbons LoBiondo Saxton finger pointing. I weary of the feigning history in southern California of in- Gilchrest Lucas Schaefer, Dan of moral outrage. I weary of the sopho- timidating Latino voters at the polls. Gillmor Manzullo Schaffer, Bob Gilman McCollum Sensenbrenner moric strategy. I think the rest of the No investigation like this has been Goodlatte McCrery Sessions House shares that weariness. We have targeted at Italian-Americans, Irish- Goodling McDade Shadegg work we are trying to get done, work Americans, or Jewish-Americans. Goss McHugh Shaw that is important to the American peo- There were other closer elections in Graham McInnis Shays Granger McIntosh Shimkus ple. 1996. They did not result in this kind of Greenwood McKeon Shuster While we are doing that, we have an an investigation. It is interesting to Gutknecht Metcalf Skeen obligation given to us by the Constitu- note that the surnames of those Mem- Hansen Mica Smith (MI) tion of the United States. We are con- Hastert Miller (FL) Smith (NJ) bers are FOX and SMITH, and not Hastings (WA) Moran (KS) Smith (TX) ducting an investigation about the le- SANCHEZ. Hayworth Morella Smith, Linda gality of the votes cast in a congres- Today, Democrats are saying to the Hefley Myrick Snowbarger sional race in order to determine the Republican leadership of this House, Herger Nethercutt Solomon Hill Neumann Souder legality of the seating of a Member of enough is enough. We can say it in Ital- Hilleary Ney Spence this House as given to us as a respon- ian, and we can say it in Spanish and Hobson Northup Stearns sibility of the Constitution. We are not the word is the same, ‘‘basta,’’ stop Hoekstra Norwood Stump going to do a minimal job on that. We Horn Nussle Sununu this intimidation. Stop this investiga- Hostettler Oxley Talent are not going to do a half-hearted job tion of Hispanic-American voters in Houghton Packard Tauzin on that. this country. Allow the democratic Hulshof Pappas Taylor (NC) We are not going to give it a wink process to go forward. Hunter Parker Thomas Hutchinson Paul Thornberry and a nod and bow to the pressures The people of the 46th district elected Hyde Paxon Thune that are supposed to have been brought the gentlewoman from California, Ms. Inglis Pease Tiahrt to us by somebody having made the al- LORETTA SANCHEZ. They said no to Bob Istook Peterson (PA) Traficant legation that really in fact has nothing Jenkins Petri Upton Dornan. This House ought to have the Johnson (CT) Pickering Walsh to do with this body, has nothing to do courage to say no to Bob Dornan and Johnson, Sam Pitts Wamp with the Constitution, has nothing to end this investigation of the gentle- Jones Pombo Watkins do with the question of whether or not woman from California, Ms. LORETTA Kasich Porter Watts (OK) Kelly Portman Weldon (FL) American elections will be confined to SANCHEZ. Kim Pryce (OH) Weldon (PA) participation by American citizens, but MOTION TO TABLE OFFERED BY MR. THOMAS King (NY) Quinn Weller it has to do with you Republicans who Mr. THOMAS. Mr. Speaker, I have a Kingston Radanovich White are racists, you Republicans who are Klug Ramstad Whitfield motion at the desk. Knollenberg Redmond Wicker sexists, et cetera. The SPEAKER pro tempore (Mr. Kolbe Regula Wolf What shallow malarkey. Rise above KINGSTON). The Clerk will report the LaHood Riggs Young (FL) it. Let us get back to work. This job Largent Rogan motion. Latham Rogers will be done in accordance with the re- The Clerk read as follows sponsibilities given to us by the Con- NOES—194 Mr. THOMAS moves to lay the resolution on stitution of the United States, and it the table. Abercrombie Dixon Kennedy (RI) will be done thoroughly, professionally Ackerman Doggett Kennelly The SPEAKER pro tempore (Mr. Allen Dooley Kildee and completely, until it is the truth of KINGSTON). The question is on the mo- Andrews Doyle Kilpatrick the matter that is found. And no in- tion to table offered by the gentleman Baesler Edwards Kind (WI) timidation, no allegation, no scream- Baldacci Engel Kleczka from California [Mr. THOMAS]. ing, no hollering, no accusation, no Barcia Eshoo Klink The question was taken; and the Barrett (WI) Etheridge Kucinich pointing of fingers is going to stop this Speaker pro tempore announced that Becerra Evans LaFalce Congress from doing its duty. That is Bentsen Farr Lampson the ayes appeared to have it. what the Constitution was written Berman Fattah Lantos RECORDED VOTE Berry Fazio Levin about, people who are willing to do Bishop Filner Lewis (GA) their duty. Ms. FURSE. Mr. Speaker, I demand a Blagojevich Forbes Lipinski That is what will be done. recorded vote. Blumenauer Ford Lofgren Ms. FURSE. Mr. Speaker, I yield the A recorded vote was ordered. Bonior Frank (MA) Lowey The vote was taken by electronic de- Borski Frost Luther balance of my time to the gentle- Boswell Furse Maloney (CT) woman from Connecticut [Ms. vice, and there were—ayes 217, noes 194, Boucher Gejdenson Maloney (NY) DELAURO]. answered ‘‘present’’ 1, not voting 21, as Boyd Gephardt Manton Brown (CA) Goode Markey Ms. DELAURO. Mr. Speaker, we, too, follows: Brown (FL) Gordon Martinez are weary on this side of the aisle. End [Roll No. 583] Brown (OH) Green Mascara this witch-hunt. End the malarkey on AYES—217 Cardin Gutierrez Matsui Carson Hall (TX) McCarthy (MO) your side of the aisle, and let this in- Aderholt Bryant Cooksey Clay Hamilton McCarthy (NY) Archer Bunning Crane vestigation conclude and let LORETTA Clayton Harman McDermott Armey Burr Crapo SANCHEZ continue her fine work as rep- Clyburn Hastings (FL) McGovern Bachus Burton Cunningham Condit Hefner McHale resenting the 46th District of Califor- Baker Buyer Davis (VA) Conyers Hilliard McIntyre nia. Ballenger Callahan Deal Costello Hinchey McNulty Barr Calvert DeLay Coyne Hinojosa Meehan b 2245 Barrett (NE) Camp Diaz-Balart Cramer Holden Meek Bartlett Campbell Dickey Democrats are sending a simple mes- Cummings Hooley Menendez Barton Canady Doolittle Danner Hoyer Millender- sage tonight with these resolutions: It Bass Cannon Dreier Davis (FL) Jackson (IL) McDonald Bateman Castle Duncan is enough, the investigation of allega- Davis (IL) Jackson-Lee Miller (CA) Bereuter Chabot Dunn tions by Citizen Dornan, with subpoena DeFazio (TX) Minge Bilbray Chambliss Ehlers DeGette Jefferson Mink power unprecedented in the history of Bilirakis Chenoweth Ehrlich Delahunt John Mollohan the House of Representatives. The ma- Bliley Christensen Emerson DeLauro Johnson (WI) Moran (VA) Blunt Coble English jority of these allegations have proven Dellums Johnson, E. B. Nadler Boehlert Coburn Ensign to be without merit. Fraudulent vot- Deutsch Kanjorski Neal Boehner Collins Everett Dicks Kaptur Oberstar ers, who have turned out to be nuns Bonilla Combest Ewing Dingell Kennedy (MA) Obey and Marines and even some of his own Brady Cook Foley H10102 CONGRESSIONAL RECORD — HOUSE November 5, 1997 Olver Rush Tauscher the parliamentarian through the Porter Sensenbrenner Tauzin Ortiz Sabo Taylor (MS) Speaker tell me whether privileged res- Portman Sessions Taylor (NC) Owens Sanders Thompson Pryce (OH) Shadegg Thomas Pallone Sandlin Thurman olutions, whether individuals have Quinn Shaw Thornberry Pascrell Sawyer Tierney been denied the right to speak on a Radanovich Shays Thune Pastor Schumer Torres privileged resolution that they have of- Ramstad Shimkus Tiahrt Payne Scott Towns Traficant fered before the House in previous Con- Redmond Shuster Pelosi Serrano Turner Regula Skeen Upton Peterson (MN) Sherman Velazquez gresses? Riggs Smith (MI) Walsh Pickett Sisisky Vento The SPEAKER pro tempore. The Rogan Smith (NJ) Wamp Pomeroy Skaggs Visclosky Chair cannot respond to place events in Rogers Smith (TX) Watkins Poshard Slaughter Waters Rohrabacher Smith, Linda Watts (OK) Price (NC) Smith, Adam Watt (NC) historical context. Ros-Lehtinen Snowbarger Weldon (FL) Rahall Snyder Waxman Mr. MENENDEZ. Mr. Speaker, based Roukema Solomon Weldon (PA) Rangel Spratt Wexler upon the fact that it certainly seems Royce Souder Weller Reyes Stabenow Weygand White like a gag rule, and as far as I know it Ryun Spence Rivers Stenholm Wise Salmon Stearns Whitfield Rodriguez Stokes Woolsey is unprecedented to go ahead and stop Sanford Stump Wicker Roemer Strickland Wynn a Member from pursuing a privileged Saxton Sununu Wolf Rothman Stupak Schaefer, Dan Talent Young (FL) Roybal-Allard Tanner resolution, I would have to object to the request. ANSWERED ‘‘PRESENT’’—1 The SPEAKER pro tempore. Objec- NOES—192 Sanchez tion is heard. Abercrombie Gordon Neal Ackerman Green Oberstar NOT VOTING—21 f Allen Gutierrez Obey Bono Fowler Scarborough Andrews Hall (TX) Olver Clement Gonzalez Schiff ADJOURNMENT Baesler Hamilton Ortiz Cox Hall (OH) Skelton Baldacci Harman Owens Cubin McKinney Smith (OR) Mr. ARMEY. Mr. Speaker, I move Barcia Hastings (FL) Pallone Fawell Moakley Stark that the House do now adjourn. Barrett (WI) Hefner Pascrell Flake Murtha Yates The question was taken; and the Becerra Hilliard Pastor Foglietta Riley Young (AK) Bentsen Hinchey Payne Speaker pro tempore announced that Berman Hinojosa Pelosi b 2305 the ayes appeared to have it. Berry Holden Peterson (MN) Bishop Hooley Pickett So the motion to table was agreed to. RECORDED VOTE Blagojevich Hoyer Pomeroy The result of the vote was announced Mr. MENENDEZ. Mr. Speaker, I de- Blumenauer Jackson (IL) Poshard as above recorded. mand a recorded vote. Bonior Jackson-Lee Price (NC) A motion to reconsider was laid on A recorded vote was ordered. Borski (TX) Rahall the table. Boswell Jefferson Rangel The vote was taken by electronic de- Boucher John Reyes f vice, and there were—ayes 216, noes 192, Boyd Johnson (WI) Rivers not voting 25, as follows: Brown (CA) Johnson, E. B. Rodriguez REQUEST TO REDUCE TIME FOR Brown (FL) Kanjorski Roemer ELECTRONIC VOTING ON RESO- [Roll No 584] Brown (OH) Kaptur Rothman LUTIONS OFFERED AS QUESTION AYES—216 Cardin Kennedy (MA) Roybal-Allard OF PRIVILEGES OF THE HOUSE Carson Kennedy (RI) Rush Aderholt Doolittle Jones Clay Kennelly Sabo ON TODAY Archer Dreier Kasich Clayton Kildee Sanders Armey Duncan Kelly Mr. ARMEY. Mr. Speaker, I ask Clyburn Kilpatrick Sandlin Bachus Dunn Kim Condit Kind (WI) Sawyer unanimous consent that any remaining Baker Ehlers King (NY) Costello Kleczka Schaffer, Bob resolutions offered today as a question Ballenger Ehrlich Kingston Coyne Klink Schumer Barr Emerson Klug Cramer Kucinich Scott of the privileges of the House be con- Barrett (NE) English Knollenberg sidered as read and that the minimum Cummings LaFalce Serrano Bartlett Ensign Kolbe Danner Lampson Sherman time for electronic voting on any ques- Barton Everett LaHood Davis (FL) Levin Sisisky tion arising with respect to consider- Bass Ewing Largent Davis (IL) Lewis (GA) Skaggs Bateman Foley Latham ation of such a resolution may be re- DeFazio Lipinski Skelton Bereuter Fossella LaTourette DeGette Lofgren Slaughter duced to 2 minutes. Bilbray Fox Lazio Delahunt Lowey Smith, Adam The SPEAKER pro tempore (Mr. Bilirakis Franks (NJ) Leach DeLauro Luther Snyder KINGSTON). Is there objection to the re- Bliley Frelinghuysen Lewis (CA) Dellums Maloney (CT) Spratt Blunt Gallegly Lewis (KY) quest of the gentleman from Texas? Deutsch Maloney (NY) Stabenow Boehlert Ganske Linder Dicks Manton Stenholm Mr. MENENDEZ. Mr. Speaker, re- Boehner Gekas Livingston Dingell Markey Strickland serving the right to object, is that my Bonilla Gibbons LoBiondo Dixon Martinez Stupak understanding that, therefore, there Brady Gilchrest Lucas Doggett Mascara Tanner Bryant Gillmor Manzullo would be no debate on the individual Dooley Matsui Tauscher Bunning Gilman McCollum Doyle McCarthy (MO) Taylor (MS) privileged resolution that a Member Burr Goodlatte McCrery Edwards McCarthy (NY) Thompson who has submitted them in a timely Burton Goodling McDade Engel McDermott Thurman fashion would have an opportunity to Buyer Goss McHugh Eshoo McGovern Tierney Callahan Graham McInnis Etheridge McHale Torres have a debate based on the unanimous- Calvert Granger McIntosh Evans McIntyre Towns consent request? Camp Greenwood McKeon Farr McNulty Turner The SPEAKER pro tempore. If a mo- Campbell Gutknecht Metcalf Fattah Meehan Velazquez Canady Hansen Mica tion to table is offered before debate Fazio Meek Vento Cannon Hastert Miller (FL) Filner Menendez Visclosky begins, that would be correct, and the Castle Hastings (WA) Moran (KS) Forbes Millender- Waters resolution would not be debatable. Chabot Hayworth Morella Ford McDonald Watt (NC) Mr. MENENDEZ. Mr. Speaker, con- Chambliss Hefley Myrick Frank (MA) Miller (CA) Wexler Chenoweth Herger Nethercutt tinuing my reservation, my under- Frost Minge Weygand Christensen Hill Neumann Furse Mink Wise standing of the unanimous-consent re- Coble Hilleary Ney Gejdenson Mollohan Woolsey quest is that they be voted and that Coburn Hobson Northup Gephardt Moran (VA) Wynn Collins Hoekstra Nussle Goode Nadler there be a dispensation of the reading. Combest Horn Oxley The question is whether or not there Conyers Hostettler Packard NOT VOTING—25 would be an opportunity to debate Cook Houghton Pappas what an individual Member has pre- Cooksey Hulshof Parker Bono Hall (OH) Schiff Crane Hunter Paul Clement Lantos Smith (OR) sented in their privileged resolution. Crapo Hutchinson Paxon Cox McKinney Stark The SPEAKER pro tempore. It would Cunningham Hyde Pease Cubin Moakley Stokes depend on whether a motion to table Davis (VA) Inglis Peterson (PA) Fawell Murtha Waxman were offered at the outset. Deal Istook Petri Flake Norwood Yates DeLay Jenkins Pickering Foglietta Riley Young (AK) Mr. MENENDEZ. Mr. Speaker, fur- Diaz-Balart Johnson (CT) Pitts Fowler Sanchez ther reserving my right to object, can Dickey Johnson, Sam Pombo Gonzalez Scarborough November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10103 b 2325 committee did on this day present to the Department’s final rule—Change Time of Designation for Restricted Areas R–5104A/B, So the motion to adjourn was agreed the President, for his approval, bills of the House of the following titles: and R–5105; Melrose, NM [Airspace Docket to. No. 97–ASW–10] (RIN: 2120–AA66) received H.R. 79. An act to provide for the convey- The result of the vote was announced November 4, 1997, pursuant to 5 U.S.C. ance of certain land in the Six Rivers Na- as above recorded. 801(a)(1)(A); to the Committee on Transpor- tional Forest in the State of California for Accordingly (at 11 o’clock and 26 tation and Infrastructure. the benefit of the Hoopa Valley Tribe. 5758. A letter from the General Counsel, minutes p.m.), the House adjourned H.R. 672. An act to make technical amend- Department of Transportation, transmitting ments to title 17, United States Code. until tomorrow, Thursday, November 6, the Department’s final rule—Establishment H.R. 708. An act to require the Secretary of 1997, at 10 a.m. of VOR Federal Airway; CA (Federal Avia- the Interior to conduct a study concerning tion Administration) [Airspace Docket No. f grazing use and open space within and adja- 97–AWP–17] (RIN: 2120–AA66) received No- cent to Grand Teton National Park, Wyo- SENATE BILLS REFERRED vember 4, 1997, pursuant to 5 U.S.C. ming, and to extend temporarily certain 801(a)(1)(A); to the Committee on Transpor- Bills of the Senate of the following grazing privileges. H.R. 2464. An act to amend the Immigra- tation and Infrastructure. titles were taken from the Speaker’s 5759. A letter from the General Counsel, tion and Nationality Act to exempt inter- table and, under the rule, referred as Department of Transportation, transmitting nationally adopted children 10 years of age follows: the Department’s final rule—Revocation of or younger from the immunization require- Restricted Area R–4501G; Fort Leonard S. 940. An act to provide for a study of the ments in section 212(a)(1)(A)(ii) of such Act. establishment of Midway Atoll as a national Wood, MO [Airspace Docket No. 97–ACE–6] f memorial to the Battle of Midway, and for (RIN: 2120–AA66) received November 4, 1997, other purposes; to the Committee on Natural EXECUTIVE COMMUNICATIONS, pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Resources. ETC. mittee on Transportation and Infrastruc- S. 1324. An act to deauthorize a portion of ture. the project for navigation, Biloxi Harbor, Under clause 2 of rule XXIV, execu- 5760. A letter from the General Counsel, Mississippi; to the Committee on Transpor- tive communications were taken from Department of Transportation, transmitting tation and Infrastructure. the Speaker’s table and referred as fol- the Department’s final rule—Standard In- lows: strument Approach Procedures; Miscellane- f ous Amendments (Federal Aviation Adminis- 5751. A letter from the Acting Adminis- tration) [Docket No. 29050; Amdt. No. 1831] ENROLLED BILLS SIGNED trator, Agricultural Marketing Service, (RIN: 2120–AA65) received November 4, 1997, transmitting the Service’s final rule—Wal- Mr. THOMAS, from the Committee pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- nuts Grown in California; Decreased Assess- mittee on Transportation and Infrastruc- on House Oversight, reported that that ment Rate [Docket No. FV97–984–1 IFR] re- committee had examined and found ture. ceived November 4, 1997, pursuant to 5 U.S.C. 5761. A letter from the General Counsel, truly enrolled bills of the House of the 801(a)(1)(A); to the Committee on Agri- Department of Transportation, transmitting following titles, which were thereupon culture. the Department’s final rule—Standard In- signed by the Speaker: 5752. A letter from the Acting Adminis- strument Approach Procedures; Miscellane- trator, Agricultural Marketing Service, H.R. 79. An act to provide for the convey- ous Amendments (Federal Aviation Adminis- transmitting the Service’s final rule—Al- ance of certain land in the Six Rivers Na- tration) [Docket No. 29049; Amdt. No. 1830] monds Grown in California; Interhandler tional Forest in the State of California for (RIN: 2120–AA65) received November 4, 1997, transfers of Reserve Obligations [Docket No. the benefit of the Hoopa Valley Tribe. pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- FV97–981–2 FR] received November 4, 1997, H.R. 672. An act to make technical amend- mittee on Transportation and Infrastruc- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- ments to certain provisions of title 17, Unit- ture. mittee on Agriculture. 5762. A letter from the General Counsel, ed States Code. 5753. A letter from the Acting Adminis- H.R. 708. An act to require the Secretary of Department of Transportation, transmitting trator, Agricultural Marketing Service, the Department’s final rule—Standard In- the Interior to conduct a study concerning transmitting the Service’s final rule—Or- grazing use and open space within and adja- strument Approach Procedures; Miscellane- anges, Grapefruit, Tangerines, and Tangelos ous Amendments (Federal Aviation Adminis- cent to Grand Teton National Park, Wyo- Grown in Florida; Limiting the Volume of ming, and to extend temporarily certain tration) [Docket No. 29048; Amdt. No. 1829] Small Florida Red Seedless Grapefruit (RIN: 2120–AA65) received November 4, 1997, grazing privileges. [Docket No. FV97–905–1 IFR] received No- H.R. 2464. An act to amend the Immigra- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- vember 4, 1997, pursuant to 5 U.S.C. mittee on Transportation and Infrastruc- tion and Nationality Act to exempt inter- 801(a)(1)(A); to the Committee on Agri- nationally adopted children 10 years of age ture. culture. 5763. A letter from the General Counsel, or younger from the immunization require- 5754. A letter from the AMD—Performance Department of Transportation, transmitting ment in section 212(a)(1)(ii) of such Act. Evaluation and RECORDs Management, Fed- the Department’s final rule—Amendment of f eral Communications Commission, transmit- Class E Airspace; Alamosa, CO (Federal ting the Commission’s final rule—Amend- Aviation Administration) [Airspace Docket SENATE ENROLLED BILL SIGNED ment of Section 73.202(b), Table of Allot- No. 97–ANM–02] (RIN: 2120–AA66) received The Speaker announced his signature ments, FM Broadcast Stations (New Boston, November 4, 1997, pursuant to 5 U.S.C. to enrolled bills of the Senate of the Texas, and Idabel, Oklahoma) [MM Docket 801(a)(1)(A); to the Committee on Transpor- No. 97–9, RM–8929, RM–9067] received Novem- following titles: tation and Infrastructure. ber 5, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); 5764. A letter from the General Counsel, S. 588. An act to provide for the expansion to the Committee on Commerce. Department of Transportation, transmitting of the Eagles Nest Wilderness within the 5755. A letter from the General Counsel, the Department’s final rule—Modification of Arapaho National Forest and the White Department of Transportation, transmitting Class E Airspace; Delaware, OH (Federal River National Forest, Colorado, to include the Department’s final rule—Fees for Provid- Aviation Administration) [Airspace Docket land known as the Slate Creek Addition. ing Production Certification-related Services No. 97–AGL–29] (RIN: 2120–AA66) received No- S. 589. An act to provide for the boundary Outside the United States (Federal Aviation vember 4, 1997, pursuant to 5 U.S.C. adjustment and land conveyance involving Administration) [Docket No. 28967; Amdt. 801(a)(1)(A); to the Committee on Transpor- the Raggeds Wilderness, White River Na- No. 187–10] (RIN: 2120–AG14) received Novem- tation and Infrastructure. tional Forest, Colorado, to correct the ef- ber 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); 5765. A letter from the General Counsel, fects of earlier erroneous land surveys. to the Committee on Transportation and In- Department of Transportation, transmitting S. 591.—An act to transfer the Dillon Rang- frastructure. the Department’s final rule—Modification of er District in the Arapaho National Forest 5756. A letter from the General Counsel, Class E Airspace; Rochester, IN (Federal to the White River National Forest in the Department of Transportation, transmitting Aviation Administration) [Airspace Docket State of Colorado. the Department’s final rule—Airworthiness No. 97–AGL–30] (RIN: 2120–AA66) received No- S. 931. An act to designate the Marjory Directives; Pilatus Britten-Norman Ltd. vember 4, 1997, pursuant to 5 U.S.C. Stoneman Douglas Wilderness and the Er- Models BN–2, BN–2A, BN–2B, and BN–2T Se- 801(a)(1)(A); to the Committee on Transpor- nest F. Coe Visitor Center. ries Airplanes (Federal Aviation Administra- tation and Infrastructure. f tion) [Docket No. 96–CE–17–AD; Amdt. 39– 5766. A letter from the General Counsel, 10173; AD 97–22–02] (RIN: 2120–AA64) received Department of Transportation, transmitting BILLS PRESENTED TO THE November 4, 1997, pursuant to 5 U.S.C. the Department’s final rule—Removal of PRESIDENT 801(a)(1)(A); to the Committee on Transpor- Class E Airspace; Minocqua-Woodruff, WI tation and Infrastructure. (Federal Aviation Administration) [Airspace Mr. THOMAS, from the Committee 5757. A letter from the General Counsel, Docket No. 97–AGL–32] (RIN: 2120–AA66) re- on House Oversight reported that that Department of Transportation, transmitting ceived November 4, 1997, pursuant to 5 U.S.C. H10104 CONGRESSIONAL RECORD — HOUSE November 5, 1997 801(a)(1)(A); to the Committee on Transpor- the Department’s final rule—Airworthiness the Department’s final rule—Airworthiness tation and Infrastructure. Directives; Dornier Luftfahrt GMBH Models Directives; Boeing Model 747 and 767 Series 5767. A letter from the General Counsel, 228–100, 228–101, 228–200, 228–201, 228–202, and Airplanes Equipped with General Electric Department of Transportation, transmitting 228–212 Airplanes (Federal Aviation Adminis- (GE) CF6–80C2 Engines (Federal Aviation Ad- the Department’s final rule—Modification of tration) [Docket No. 97–CE–23–AD; Amdt. 39– ministration) [Docket No. 97–NM–243–AD; Class E Airspace; Bloomington, IL (Federal 10181; AD 97–22–09] (RIN: 2120–AA64) received Amdt. 39–10175; AD 97–22–04] (RIN: 2120–AA64) Aviation Administration) [Airspace Docket November 4, 1997, pursuant to 5 U.S.C. received November 4, 1997, pursuant to 5 No. 97–AGL–33] (RIN: 2120–AA66) received No- 801(a)(1)(A); to the Committee on Transpor- U.S.C. 801(a)(1)(A); to the Committee on vember 4, 1997, pursuant to 5 U.S.C. tation and Infrastructure. Transportation and Infrastructure. 801(a)(1)(A); to the Committee on Transpor- 5777. A letter from the General Counsel, 5785. A letter from the Chief, Regulations tation and Infrastructure. Department of Transportation, transmitting Unit, Internal Revenue Service, transmitting 5768. A letter from the General Counsel, the Department’s final rule—Airworthiness the Service’s final rule—Royal Caribbean Department of Transportation, transmitting Directives; Partenavia Costruzioni Cruises, Ltd. v. United States—received No- the Department’s final rule—Modification of Aeronauticas, S.p.A. Models AP68TP 300 vember 5, 1997, pursuant to 5 U.S.C. Class E Airspace; Norwalk, OH (Federal ‘‘Spartacus’’ and AP68TP 600 ‘‘Viator’’ Air- 801(a)(1)(A); to the Committee on Ways and Aviation Administration) [Airspace Docket planes (Federal Aviation Administration) Means. No. 97–AGL–28] (RIN: 2120–AA66) received No- [Docket No. 97–CE–24–AD; Amdt. 39–10182; AD 5786. A letter from the Chief, Regulations vember 4, 1997, pursuant to 5 U.S.C. 97–22–10] (RIN: 2120–AA64) received November Unit, Internal Revenue Service, transmitting 801(a)(1)(A); to the Committee on Transpor- 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the Service’s final rule—Sun Microsystems, tation and Infrastructure. the Committee on Transportation and Infra- Inc. v. Commissioner—received November 5, 5769. A letter from the General Counsel, structure. 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the Department of Transportation, transmitting 5778. A letter from the General Counsel, Committee on Ways and Means. the Department’s final rule—Modification of Department of Transportation, transmitting 5787. A letter from the Chief, Regulations Class E Airspace; Mason, MI (Federal Avia- the Department’s final rule—Airworthiness Unit, Internal Revenue Service, transmitting tion Administration) [Airspace Docket No. Directives; Pilatus Aircraft LTD Models PC– the Service’s final rule—Trans City Life In- 97–AGL–27] (RIN: 2120–AA66) received Novem- 6/B1–H2, PC–6/B2–H2, PC–6/B2–H4, and PC–12 surance Company v. Commissioner—received ber 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); Airplanes (Federal Aviation Administration) November 5, 1997, pursuant to 5 U.S.C. to the Committee on Transportation and In- [Docket No. 97–CE–18–AD; Amdt. 39–10180; AD 801(a)(1)(A); to the Committee on Ways and frastructure. 97–22–08] (RIN: 2120–AA64) received November Means. 5770. A letter from the General Counsel, 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to f Department of Transportation, transmitting the Committee on Transportation and Infra- the Department’s final rule—Amendment to structure. REPORTS OF COMMITTEES ON Class E Airspace; Wrightstown, NJ (Federal 5779. A letter from the General Counsel, PUBLIC BILLS AND RESOLUTIONS Aviation Administration) [Airspace Docket Department of Transportation, transmitting No. 97–AEA–32] (RIN: 2120–AA66) received No- the Department’s final rule—Airworthiness Under clause 2 of rule XIII, reports of vember 4, 1997, pursuant to 5 U.S.C. Directives; Dornier Model 328–100 Series Air- committees were delivered to the Clerk 801(a)(1)(A); to the Committee on Transpor- planes Equipped with BURNS Aerospace Cor- for printing and reference to the proper tation and Infrastructure. poration Passenger Seats (Federal Aviation calendar, as follows: 5771. A letter from the General Counsel, Administration) [Docket No. 97–NM–84–AD; Mr. HYDE: Committee on the Judiciary. Department of Transportation, transmitting Amdt. 39–10178; AD 97–06–07 R1] (RIN: 2120– H.R. 2440. A bill to make technical amend- the Department’s final rule—Amendment to AA64) received November 4, 1997, pursuant to ments to section 10 of title 9, United States Class E Airspace; Point Pleasant, WV (Fed- 5 U.S.C. 801(a)(1)(A); to the Committee on Code (Rept. 105–381). Referred to the Commit- eral Aviation Administration) [Airspace Transportation and Infrastructure. tee of the Whole House on the State of the Docket No. 97–AEA–31] (RIN: 2120–AA66) re- 5780. A letter from the General Counsel, Union. ceived November 4, 1997, pursuant to 5 U.S.C. Department of Transportation, transmitting Mr. SOLOMON: Committee on Rules. 801(a)(1)(A); to the Committee on Transpor- the Department’s final rule—Airworthiness House Resolution 301. Resolution amending tation and Infrastructure. Directives; Airbus Model A310 and A300–600 5772. A letter from the General Counsel, Series Airplanes Equipped with Pratt & the Rules of the House of Representatives to Department of Transportation, transmitting Whitney Turbofan Engines (Federal Aviation repeal the exception to the requirement that the Department’s final rule—Amendment to Administration) [Docket No. 96–NM–64–AD; public committee proceedings be open to all Class E Airspace; Summerville, WV (Federal Amdt. 39–10157; AD 97–21–04] (RIN: 2120–AA64) media (Rept. 105–382). Referred to the House Aviation Administration) [Airspace Docket received November 4, 1997, pursuant to 5 Calendar. No. 97–AEA–33] (RIN: 2120–AA66) received No- U.S.C. 801(a)(1)(A); to the Committee on Mr. SOLOMON: Committee on Rules. vember 4, 1997, pursuant to 5 U.S.C. Transportation and Infrastructure. House Resolution 305. Resolution waiving a 801(a)(1)(A); to the Committee on Transpor- 5781. A letter from the General Counsel, requirement of clause 4(b) of rule XI with re- tation and Infrastructure. Department of Transportation, transmitting spect to consideration of certain resolutions 5773. A letter from the General Counsel, the Department’s final rule—Airworthiness reported from the Committee on Rules, and Department of Transportation, transmitting Directives; Boeing Model 737 Series Air- for other purposes (Rept. 105–383). Referred the Department’s final rule—Establishment planes (Federal Aviation Administration) to the House Calendar. of Class E Airspace; Indian Head, MD (Fed- [Docket No. 97–NM–229–AD; Amdt. 39–10179; Mr. LINDER: Committee on Rules. House eral Aviation Administration) [Airspace AD 97–22–07] (RIN: 2120–AA64) received No- Resolution 306. Resolution waiving a require- Docket No. 97–AEA–34] (RIN: 2120–AA66) re- vember 4, 1997, pursuant to 5 U.S.C. ment of clause 4(b) of rule XI with respect to ceived November 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Transpor- consideration of certain resolutions reported 801(a)(1)(A); to the Committee on Transpor- tation and Infrastructure. from the Committee on Rules, and for other tation and Infrastructure. 5782. A letter from the General Counsel, purposes (Rept. 105–384). Referred to the 5774. A letter from the General Counsel, Department of Transportation, transmitting House Calendar. Department of Transportation, transmitting the Department’s final rule—Airworthiness f the Department’s final rule—Airworthiness Directives; Pilatus Britten-Norman Ltd. Directives; Industrie Aeronautiche e (formerly Britten-Norman) BN2A MK.111 Se- PUBLIC BILLS AND RESOLUTIONS Meccaniche Rinaldo Piaggio S.p.A. Model P– ries Airplanes (Federal Aviation Administra- Under clause 5 of Rule X and clause 4 180 Airplanes (Federal Aviation Administra- tion) [Docket No. 86–CE–23–AD; Amdt. 39– of Rule XXII, public bills and resolu- tion) [Docket No. 97–CE–25–AD; Amdt. 39– 10171; AD 86–07–02 R1] (RIN: 2120–AA64) re- tions were introduced and severally re- 10183; AD 97–22–11] (RIN: 2120–AA64) received ceived November 4, 1997, pursuant to 5 U.S.C. November 4, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Transpor- ferred, as follows: 801(a)(1)(A); to the Committee on Transpor- tation and Infrastructure. By Mr. TAYLOR of Mississippi: tation and Infrastructure. 5783. A letter from the General Counsel, H.R. 2814. A bill to require the adjustment 5775. A letter from the General Counsel, Department of Transportation, transmitting of tariffs on products imported into the Unit- Department of Transportation, transmitting the Department’s final rule—Airworthiness ed States from the People’s Republic of the Department’s final rule—Airworthiness Directives; Pilatus Britten-Norman Ltd. China based on the amount by which tariffs Directives; SIAI Marchetti S.r.1. Models (formerly Britten-Norman) BN–2A, BN–2B, on products exported from the United States SF600 and SF600A Airplanes (Federal Avia- and BN–2T Series Airplanes (Federal Avia- to the People’s Republic of China exceed tar- tion Administration) [Docket No. 97–CE–26– tion Administration) [Docket No. 96–CE–25– iffs on products of the People’s Republic of AD; Amdt. 39–10184; AD 97–22–12] (RIN: 2120– AD; Amdt. 39–10170; AD 97–22–01] (RIN: 2120– China imported into the United States; to AA64) received November 4, 1997, pursuant to AA64) received November 4, 1997, pursuant to the Committee on Ways and Means. 5 U.S.C. 801(a)(1)(A); to the Committee on 5 U.S.C. 801(a)(1)(A); to the Committee on By Mr. WELLER: Transportation and Infrastructure. Transportation and Infrastructure. H.R. 2815. A bill to amend title 18, United 5776. A letter from the General Counsel, 5784. A letter from the General Counsel, States Code, to provide penalties for the use Department of Transportation, transmitting Department of Transportation, transmitting of interstate facilities to target children for November 5, 1997 CONGRESSIONAL RECORD — HOUSE H10105 sexually explicit messages or contacts; to year 2002 and to create a Social Security re- sponse teams in certain areas; to the Com- the Committee on the Judiciary. form reserve fund to revenues generated by mittee on Transportation and Infrastruc- By Mr. CRANE: economic growth; to the Committee on the ture. H.R. 2817. A bill to amend the Internal Rev- Budget, and in addition to the Committee on By Mr. BARR of Georgia (for himself, enue Code of 1986 to more accurately codify Rules, for a period to be subsequently deter- Mr. STUMP, Mrs. CUBIN, Mr. GRAHAM, the depreciable life of printed wiring board mined by the Speaker, in each case for con- Mr. SMITH of New Jersey, Mr. SAM and printed wiring assembly equipment; to sideration of such provisions as fall within JOHNSON, Mrs. LINDA SMITH of Wash- the Committee on Ways and Means. the jurisdiction of the committee concerned. ington, Mr. TIAHRT, Mr. METCALF, By Mr. DEFAZIO (for himself, Ms. By Mr. SCHUMER (for himself, Ms. Mr. SOUDER, Mr. PAUL, Mrs. FURSE, Mr. MARKEY, Mr. STARK, Mr. CARSON, Ms. FURSE, Mr. PAUL, Ms. CHENOWETH, Mr. SESSIONS, Mr. BART- FRANK of Massachusetts, Mrs. VELAZQUEZ, Mr. FROST, Mr. JACKSON, LETT of Maryland, Mr. HUNTER, Mr. MALONEY of New York, Ms. HOOLEY of Mr. HINCHEY, Mr. FILNER, Mr. DOOLITTLE, Mr. MICA, and Mr. KINGS- Oregon, and Mr. LUTHER): TORRES, Mr. NADLER, Mr. GUTIERREZ, TON): H.R. 2818. A bill to repeal the pilot recre- Ms. KILPATRICK, and Mr. CLYBURN): H. Res. 304. A resolution directing the ation fee program, and to establish a royalty H.R. 2826. A bill to amend the Internal Rev- Committee on the Judiciary to undertake an on hardrock minerals, the proceeds of which enue Code of 1986 to provide a credit for the inquiry into whether grounds exist to im- are to be used for public recreational sites purchase of a principal residence within an peach William Jefferson Clinton, the Presi- managed by the Department of the Interior empowerment zone or enterprise community dent of the United States; to the Committee or the United States Forest Service, and for by a first-time homebuyer; to the Committee on Rules. other purposes; to the Committee on Re- on Ways and Means. By Mr. HAYWORTH: sources. By Mr. SCHUMER: H. Res. 308. A resolution expressing the By Mrs. JOHNSON of Connecticut (for H.R. 2827. A bill to amend the Internal Rev- sense of the House of Representatives that herself and Mr. MATSUI): enue Code of 1986 to require that a taxpayer candidates for election for Federal office, the H.R. 2819. A bill to amend the Internal Rev- may request a receipt for an income tax pay- individuals working on their campaigns, and enue Code of 1986 to permanently extend the ment which itemizes the portion of the pay- persons involved with the financing of cam- research credit and to modify the alternative ment which is allocable to various Govern- paigns for election for Federal office should incremental credit; to the Committee on ment spending categories; to the Committee obey all of the applicable laws, rules, and Ways and Means. on Ways and Means. regulations governing fundraising for such By Mr. JOHNSON of Wisconsin (for By Mr. TRAFICANT (for himself and campaigns; to the Committee on House Over- himself and Mr. EHRLICH): Mr. NEY): sight. H.R. 2820. A bill to exclude certain veter- H.R. 2828. A bill to direct the Capitol Po- ans disability benefits from consideration as lice Board to establish a pay scale and bene- f adjusted income for purposes of determining fit package for members and civilian em- ployees of the United States Capitol Police PRIVATE BILLS AND the amount of rent paid by a family for a RESOLUTIONS dwelling unit assisted under the United equivalent to the pay scale and benefit pack- States Housing Act of 1937; to the Committee age applicable to members of the United Under clause 1 of Rule XXII, private on Banking and Financial Services. States Secret Service Uniformed Division; to bills and resolutions of the following By Mrs. KENNELLY of Connecticut the Committee on House Oversight. titles were introduced and severally re- By Mr. VISCLOSKY (for himself, Mr. (for herself, Mr. CRANE, Ms. DANNER, ferred, as follows: Mrs. EMERSON, Mrs. THURMAN, Mrs. LOBIONDO, Mr. ABERCROMBIE, Mr. By Mrs. KELLY: LOWEY, Mr. LIPINSKI, Mr. RAMSTAD, BARRETT of Wisconsin, Mr. BERRY, H.R. 2816. A bill for the relief of Frank Mr. YATES, and Mr. WELLER): Mr. BLAGOJEVICH, Mr. BOEHLERT, Mr. H.R. 2821. A bill to amend the Internal Rev- BONIOR, Mr. BROWN of Ohio, Mr. Redendo; to the Committee on the Judiciary. enue Code of 1986 to waive the income inclu- BUYER, Mr. CASTLE, Mr. CRAMER, Mr. By Ms. VELAZQUEZ: sion on a distribution from an individual re- COSTELLO, Mr. COYNE, Ms. CARSON, H.R. 2831. A bill for the relief Jesus M. tirement account to the extent that the dis- Mr. DAVIS of Virginia, Mr. DICKS, Mr. Collado-Munoz; to the Committee on the Ju- tribution is contributed for charitable pur- DEUTSCH, Mrs. EMERSON, Ms. ESHOO, diciary. poses; to the Committee on Ways and Means. Mr. ETHERIDGE, Mr. EVANS, Mr. f By Mr. KNOLLENBERG (for himself FALEOMAVAEGA, Mr. FAZIO of Califor- and Mr. BARCIA of Michigan): nia, Mr. FILNER, Mr. FOX of Penn- ADDITIONAL SPONSORS H.R. 2822. A bill to reaffirm and clarify the sylvania, Mr. FRANK of Massachu- Under clause 4 of rule XXII, sponsors Federal relationship of the Swan Creek setts, Mr. FROST, Ms. FURSE, Mr. were added to public bills and resolu- GEJDENSON, Mr. GILMAN, Mr. GORDON, Black River Confederated Ojibwa Tribes as a tions as follows: distinct federally recognized Indian tribe, Mr. GUTIERREZ, Ms. HARMAN, Mr. and for other purposes; to the Committee on HASTINGS of Florida, Mr. HINCHEY, H.R. 27: Mr. HULSHOF. Resources. Mr. HOLDEN, Mr. HORN, Mr. JACKSON, H.R. 122: Mr. SALMON. By Ms. NORTON (for herself, Mrs. Mr. JOHNSON of Wisconsin, Mr. KEN- H.R. 612: Mr. KUCINICH. MORELLA, Mr. HOYER, Mr. WYNN, and NEDY of Rhode Island, Mr. KILDEE, H.R. 641: Mr. SPENCE. Mr. MORAN of Virginia): Ms. KILPATRICK, Mr. KLECZKA, Mr. H.R. 699: Mr. COOK and Mr. TALENT. H.R. 2823. A bill to direct the Adminis- KLUG, Mr. LAMPSON, Mr. LANTOS, Mr. H.R. 710: Mr. MANTON. trator of the Environmental Protection LAZIO of New York, Mr. LIPINSKI, Ms. H.R. 712: Mr. MANTON. Agency to carry out a pilot program for res- LOFGREN, Mrs. LOWEY, Mr. MANTON, H.R. 777: Mr. INGLIS of South Carolina and toration of urban watersheds and community Mr. MARTINEZ, Mr. MATSUI, Mrs. Mr. BLUNT. environments in the Anacostia River water- MCCARTHY of New York, Mr. MCIN- H.R. 815: Mr. MCINTYRE. shed, District of Columbia and Maryland, TYRE, Ms. MCKINNEY, Mr. MCNULTY, H.R. 836: Mr. BAESLER. and for other purposes; to the Committee on Mrs. MINK of Hawaii, Mr. NEY, Mr. H.R. 866: Mr. SALMON. Transportation and Infrastructure. OLVER, Mr. OXLEY, Mr. PALLONE, Mr. H.R. 900: Mr. KLUG and Mr. WEYGAND. By Mr. SALMON (for himself, Ms. RIV- PAPPAS, Mr. RAMSTAD, Mr. REYES, H.R. 939: Mr. RAMSTAD. ERS, Mrs. MYRICK, Mr. TAYLOR of Mr. ROMERO-BARCELO, Mr. ROTHman, H.R. 950: Ms. MILLENDER-MCDONALD and North Carolina, Mr. BALLENGER, Mr. Ms. SANCHEZ, Mr. SAXTON, Mr. SHER- Mr. WEXLER. CHRISTENSEN, Mr. HAYWORTH, Mr. MAN, Mr. SKEEN, Ms. SLAUGHTER, Mr. H.R. 971: Mr. FRELINGHUYSEN. SCARBOROUGH, Mr. GRAHAM, and Mr. STOKES, Mr. STRICKLAND, Mr. H.R. 986: Mr. FAWELL. TAYLOR of Mississippi): STUPAK, Mrs. TAUSCHER, Mrs. H.R. 993: Mr. SALMON. H.R. 2824. A bill to provide that annual pay THURMAN, Mr. TOWNS, Mr. TRAFI- H.R. 1025: Mr. SKELTON. adjustments for Members of Congress shall CANT, Mr. VENTO, Mr. WELLER, Mr. H.R. 1049: Mr. VENTO. not be made in the year immediately follow- WHITFIELD, Ms. WOOLSEY, and Mr. H.R. 1114: Mr. KLINK, Mr. COLLINS, and Mr. ing any fiscal year in which a budget deficit YATES): MALONEY of Connecticut. exists, and for other purposes; to the Com- H.R. 2829. A bill to establish a matching H.R. 1154: Mr. HEFNER. mittee on Government Reform and Over- grant program to help State and local juris- H.R. 1165: Mr. MCINTYRE. sight, and in addition to the Committee on dictions purchase armor vests for use by law H.R. 1334: Mr. BEREUTER, Mr. TAYLOR of House Oversight, for a period to be subse- enforcement departments; to the Committee Mississippi, and Mr. HASTINGS of Florida. quently determined by the Speaker, in each on the Judiciary. H.R. 1371: Mr. WATTS of Oklahoma. case for consideration of such provisions as By Mr. WISE: H.R. 1398: Mr. MCINTYRE. fall within the jurisdiction of the committee H.R. 2830. A bill to direct the Adminis- H.R. 1401: Mrs. THURMAN. concerned. trator of the Federal Railroad Administra- H.R. 1415: Mr. RODRIGUEZ and Mr. LANTOS. By Mr. SANFORD: tion to carry out a pilot program to assess H.R. 1425: Mr. GEJDENSON. H.R. 2825. A bill to establish procedures to the benefits of establishing local and re- H.R. 1475: Mr. SALMON. ensure a balanced Federal budget by fiscal gional hazardous material emergency re- H.R. 1500: Mr. WEYGAND. H10106 CONGRESSIONAL RECORD — HOUSE November 5, 1997

H.R. 1513: Mr. COSTELLO. H.R. 2183: Mr. SOLOMON. H.R. 2648: Ms. RIVERS and Mr. DELAY. H.R. 1515: Mr. REDMOND. H.R. 2221: Mr. PETERSON of Pennsylvania. H.R. 2661: Mrs. MYRICK and Mr. PAXON. H.R. 1521: Mrs. TAUSCHER. H.R. 2302: Mr. TORRES and Ms. VELA´ ZQUEZ. H.R. 2664: Mr. BLUMENAUER. H.R. 1524: Mr. ENSIGN. H.R. 2313: Mr. MANTON. H.R. 1565: Mr. DAVIS of Virginia and Mr. H.R. 2317: Mr. KENNEDY of Rhode Island. H.R. 2671: Mr. FROST and Mr. FILNER. KUCINICH. H.R. 2327: Mr. SANDLIN and Mrs. NORTHUP. H.R. 2723: Mr. PETERSON of Pennsylvania. H.R. 2348: Mr. BISHOP, Mr. BONIOR, Mr. H.R. 1573: Mr. RAMSTAD. H.R. 2757: Mr. SANDERS and Mr. COYNE. DREIER, Mr. SHERMAN, Mr. LEWIS of Califor- H.R. 1614: Mr. CLEMENT. H.R. 2760: Mr. PACKARD, Mr. GALLEGLY, Mr. H.R. 1656: Mrs. THURMAN. nia, Mr. COX of California, and Mr. ROGAN. EVANS, and Mr. TAYLOR of Mississippi. H.R. 1679: Mr. BROWN of California. H.R. 2349: Mr. CUNNINGHAM, Mr. BONO, Ms. H.R. 1689: Mr. KIND of Wisconsin, Mr. SANCHEZ, Mr. GALLEGLY, Mrs. TAUSCHER, and H.R. 2783: Mr. GOODE. HILLEARY, and Mr. HASTINGS of Washington. Mr. HORN. H.R. 2807: Mr. KENNEDY of Rhode Island. H.R. 2370: Ms. CHRISTIAN-GREEN and Mr. H.R. 1748: Mr. WOLF. H. Con. Res. 55: Mr. RUSH. ROMERO-BARCELO. H.R. 1768: Mr. SALMON. H. Con. Res. 65: Mr. NEAL of Massachusetts, H.R. 1870: Ms. KILPATRICK, Mr. LEWIS of H.R. 2380: Mr. MCHALE. H.R. 2403: Mr. ANDREWS and Mr. PAPPAS. Mr. PACKARD, Mr. COSTELLO, and Mr. EHR- Georgia, Mrs. LOWEY, and Ms. LOFGREN. H.R. 2453: Mrs. THURMAN, Mr. HOBSON, Mr. LICH. H.R. 1873: Mrs. KENNELLY of Connecticut GREENWOOD, Mr. BARRETT of Wisconsin, Ms. H. Con. Res. 80: Ms. VELAZQUEZ. and Mr. GEJDENSON. FURSE, Mr. MCGOVERN, and Mr. ALLEN. H.R. 1874: Mrs. KENNELLY of Connecticut H. Con. Res. 126: Ms. SLAUGHTER, Mr. PE- H.R. 2456: Mr. SHUSTER and Mr. RAMSTAD. and Mr. GEJDENSON. TERSON of Minnesota, Mr. LAMPSON, and Ms. H.R. 2488: Mr. PETERSON of Minnesota. H.R. 1951: Mrs. KENNELLY of Connecticut, DANNER. H.R. 2499: Mr. LAMPSON, Mr. CLEMENT, Mr. Mr. THOMPSON, Mr. FATTAH, Mr. NEAL of H. Con. Res. 154: Mr. FROST and Mrs. UPTON, Mr. PAPPAS, and Mr. RAMSTAD. Massachusetts, and Mr. HINOJOSA. H.R. 2503: Mr. SCHUMER. TAUSCHER. H.R. 1995: Mr. RAMSTAD, Mr. MCKEON, Mrs. H.R. 2515: Mr. BARRETT of Nebraska. H. Con. Res. 158: Mr. TRAFICANT. TAUSCHER, Mr. SNYDER, Ms. SANCHEZ, Mr. H.R. 2524: Ms. LOFGREN and Mr. HEFNER. H. Con. Res. 176: Mr. BACHUS, Mr. Kingston, DEFAZIO, Mr. TIERNEY, Mr. SHERMAN and H.R. 2570: Mr. COBURN. Mr. POSHARD, and Mr. NEUMANN. Mrs. CLAYTON. H.R. 2599: Mr. OLVER. H. Res. 205: Mr. OLVER. H.R. 2023: Mr. BROWN of Ohio and Mrs. H.R. 2609: Mr. SPENCE, Mr. WATKINS, Mr. TAUSCHER. LUCAS of Oklahoma, Mr. ROHRABACHER, and H. Res. 211: Mr. BUYER, Mr. HOLDEN, Mr. H.R. 2094: Mrs. LOWEY and Mr. ROTHMAN. Mr. HUNTER. KOLBE, Mr. NUSSLE, and Mr. RYUN. H.R. 2125: Mr. PAPPAS. H.R. 2631: Mr. WATTS of Oklahoma, Mr. H. Res. 279: Mr. SNYDER, Mrs. TAUSCHER, H.R. 2139: Mr. DOOLEY of California. JONES, and Mr. ADAM SMITH of Washington. Mr. DEFAZIO, Mr. GILMAN, and Mr. CLAY. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, WEDNESDAY, NOVEMBER 5, 1997 No. 153 Senate The Senate met at 9:30 a.m., and was with the time counting as under the Mr. LEAHY. Mr. President, I ask called to order by the President pro previous order. unanimous consent that the order for tempore [Mr. THURMOND]. The PRESIDENT pro tempore. With- the quorum call be rescinded. out objection, it is so ordered. The PRESIDING OFFICER (Mr. AL- PRAYER Mr. ALLARD. Mr. President, I sug- LARD). Without objection, it is so or- The Chaplain, Dr. Lloyd John gest the absence of a quorum. dered. Ogilvie, offered the following prayer: The PRESIDENT pro tempore. The f Almighty God, awe and wonder grip clerk will call the roll. The legislative clerk proceeded to NOMINATION OF MARGARET MOR- us as we think magnificently about ROW TO BE U.S. DISTRICT JUDGE You. You are all-knowing, all-loving, call the roll. Mr. ALLARD. Mr. President, I ask FOR THE CENTRAL DISTRICT OF all-wise, all-powerful. We openly con- CALIFORNIA fess our human inadequacies and our unanimous consent that the order for need for You to infuse us with the the quorum call be rescinded. Mr. LEAHY. Mr. President, although strength, understanding, and compas- The PRESIDENT pro tempore. With- I am delighted that the Senate will sion needed for this day. out objection, it is so ordered. today be confirming James S. Gwin as We open our minds to think Your f a Federal district court judge, the Re- publican Leader has once again passed thoughts. We commit to You our com- SCHEDULE munications with others. Help us to over and refused to take up the nomi- speak truth as we know it, but also en- Mr. ALLARD. Mr. President, this nation of Margaret Morrow. Ms. Mor- able us to be responsive to what others morning, the Senate will resume legis- row’s nomination is the longest pend- say. Free us from judgmental cat- lative session and debate on the motion ing judicial nomination on the Senate egorizations that make us resistant to to proceed to S. 1269, the fast-track leg- Calendar, having languished on the listening to people with whom we ex- islation, with Senator ROTH in control Senate Calendar since June 12. The pect to differ. Give us the humility to of 3 hours and Senator DORGAN in con- central district of California des- know that none of us has a corner on trol of 4 hours. As under the previous perately needs this vacancy filled, Your truth and that we all need each order, the Senate will vote on or in re- which has been open for more than 18 other to discover Your guidance to- lation to the motion to proceed to S. months, and Margaret Morrow is emi- gether. We yield our attitudes and dis- 1269 at no later than 5 p.m. At 10:20 this nently qualified to fill it. positions to Your control so that we morning, the Senate will proceed to ex- Just last week, the opponents of this might work effectively with others. We ecutive session to debate the nomina- nomination announced in a press con- press on with the duties of the day with tion of James Gwin to be U.S. district ference that they welcomed a debate hope in our hearts. Through our Lord judge for the northern district of Ohio and rollcall vote on Margaret Morrow. and Saviour. Amen. for 10 minutes as under the previous But again the Republican majority f order. A rollcall vote on the nomina- leader has refused to bring up this well- tion will now occur at 10:30 a.m. Fol- qualified nominee for such debate and RECOGNITION OF THE ACTING lowing the vote on fast track, the Sen- vote. It appears that Republicans have MAJORITY LEADER ate may debate S. 1269 or turn to any of time for press conferences to attack The PRESIDENT pro tempore. The the following items if available: the one of the President’s judicial nomina- able acting majority leader, Senator D.C. appropriations bill, FDA reform tions, but the majority leader will not ALLARD, is recognized. conference report, Intelligence author- allow the U.S. Senate to turn to that f ization conference report, and any ad- nomination for a vote. We can discuss ditional legislative or executive items the nomination in sequential press con- UNANIMOUS-CONSENT AGREEMENT that can be cleared for action. There- ferences and weekend talk show ap- Mr. ALLARD. Mr. President, I ask fore, Members can anticipate rollcall pearances but not in the one place that unanimous consent that the vote pre- votes throughout today’s session of the action must be taken on it, on the floor viously scheduled for 9:40 a.m. today Senate. of the U.S. Senate. The Senate has suf- now occur at 10:30 a.m., with the debate Mr. President, I suggest the absence fered through hours of quorum calls in time on the nomination beginning at of a quorum. the past few weeks which time would 10:20 a.m., as under the previous order. The PRESIDENT pro tempore. The have been better spent debating and In addition, I ask unanimous consent clerk will call the roll. voting on this judicial nomination. that the debate on the motion to pro- The assistant legislative clerk pro- The extremist attacks on Margaret ceed to S. 1269 now begin at 9:30 a.m., ceeded to call the roll. Morrow are puzzling—not only to those

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S11709 S11710 CONGRESSIONAL RECORD — SENATE November 5, 1997 of us in the Senate who know her [From the Los Angeles Times, Nov. 3, 1997] erly would attempt to legislate a political record but to those who know her best EXHIBIT 1 agenda from the bench. Soon, Republican senators John Ashcroft of Missouri and Jeff in California, including many Repub- BIPARTISAN SUPPORT NOT ENOUGH FOR Sessions of Alabama, both staunch conserv- JUDICIAL NOMINEE licans. atives, new members of the Judiciary Com- They cannot fathom why a few Sen- (U.S. Senate: Margaret Morrow’s appoint- mittee and Jipping allies, joined the attack. ment is stalled despite backing across po- ators have decided to target someone Since that time, Morrow has been back to litical spectrum. Some say she is victim of the committee for another hearing and an- as well-qualified and as moderate as effort to downsize courts) swered three sets of questions in writing—in- she is. (By Henry Weinstein) cluding highly unusual questions about her Mr. President, I ask unanimous con- If ever there was an unlikely candidate to positions on many California ballot initia- sent that a recent article from the Los be the target for a militant campaign tives during the past 10 years. She also told against ‘‘judicial activism,’’ it would be Los the committee she would adhere strictly to Angles Times by Henry Weinstein on precedents and would have no problem apply- the nomination of Margaret Morrow, Angeles lawyer Margaret Mary Morrow. An honors graduate of Harvard Law ing the death penalty. entitled ‘‘Bipartisan Support Not School, 47, was the first female president of Last Wednesday, the effort to derail Mor- Enough For Judicial Nominee,’’ be the California Bar Assn., where she worked row’s nomination escalated. Ashcroft and Sessions announced that they would spear- printed in the RECORD at the conclu- to strengthen the state’s attorney discipline head further opposition to Morrow and said sion of my statement. system. A commercial litigation specialist, Morrow more than 100 ‘‘grassroots’’ organizations, The PRESIDING OFFICER. Without is a partner in the Los Angeles office of Ar- including the National Rifle Assn. and the objection, it is so ordered. nold & Porter, one of the most venerable Traditional Values Coalition, had joined the firms based in the nation’s capital. Her cli- campaign against her. (See exhibit 1.) The coalition was assembled while ents have included First Interstate Bank, Ashcroft had placed ‘‘a hold’’ on the nomina- Mr. LEAHY. This article documents McDonnell Douglas, TWA and The Limited. tion, which under Senate protocol had pre- President Clinton, on the recommendation the deep and widespread bipartisan vented it from coming to the floor for a vote. of Sen. Barbara Boxer (D-Calif.), tapped Mor- support that Margaret Morrow enjoys On Wednesday, at a news conference an- row for a federal trial judgeship in May 1996. from Republicans that know her. In nouncing the coalition, he said he now favors She quickly won bipartisan support—includ- a roll-call vote. fact, these Republicans are shocked ing endorsements from judges appointed by Ashcroft and Sessions pointedly reminded that some Senators have attacked Ms. presidents Ronald Reagan and George Bush their colleagues that several organizations and governors George Deukmejian and Pete Morrow. For example, Sheldon H. in the coalition would be ‘‘scoring’’ the votes Wilson. Sloan, a former president of the Los of senators on the nomination. Angeles County Bar Association and an ‘‘Margaret is superbly well qualified,’’ said Morrow’s adversaries contend that she associate of Gov. Pete Wilson, declared Los Angeles lawyer Robert C. Bonner, who would be a ‘‘judicial activist’’ on the bench. has served as a federal judge and head of the ‘‘She views the law as an engine for social that: ‘‘My party has the wrong woman Drug Enforcement Administration during in their sights.’’ change . . . and as a means of imposing pub- Bush’s presidency. lic policy from the courts on the rest of us,’’ Stephen S. Trott, a former high- She also received the highest possible rat- Ashcroft asserted. ing—‘‘very well qualified’’—from the Amer- Morrow declined to respond. ‘‘I do not be- ranking official in the Reagan adminis- ican Bar Assn.’s judicial evaluation commit- tration and now a Court of Appeals lieve it is appropriate for me to comment tee. By late 1996, after a perfunctory hearing, while my nomination is pending before the judge wrote to the majority leader to Morrow cleared the committee unanimously. Senate,’’ she said in a brief telephone inter- try to free up the Morrow nomination, But the nomination died, along with several view at week’s end. according to this article Judge Trott others in the congressional slowdown that Morrow has previously denied such charac- inevitably occurs in election years. informed Senator LOTT. terizations. For example, in June 1996, she Clinton renominated Morrow on Jan. 7. told the Judiciary Committee: ‘‘I view the I know that you are concerned, and prop- Within three weeks, trouble emerged and her role of a judge as being the resolution of dis- erly so, about the judicial philosophy of each nomination remains in limbo even though putes that come before . . . him or her for candidate to the federal bench. So am I. I she was approved a second time on June 12 resolution. So I would look to the facts of have taken the oath, and I know what it by the Judiciary Committee, whose chair- the case. I would attempt to apply the law as means: follow the law, don’t make it up to man, Orrin G. Hatch (R-Utah), said in late I understand it to those facts. And I would suit your own purposes. Based on my own September that he would push for a swift not seek to expand them or otherwise to use long acquaintance with Margaret Morrow, I vote and support her. any particular case as a reason for articulat- Much to the surprise of her backers, par- have every confidence she will respect the ing new constitutional rights or otherwise ticularly her Republican supporters, Morrow limitations of a judicial position. expanding what I understand to be the exist- has become the subject of the sort of intense ing law.’’ Robert Bonner, the former head of partisan attacks generally reserved for Boxer and Patrick Leahy (D-Vt.), the rank- DEA under a Republican administra- nominees with a long record of activism such ing minority member on the Judiciary Com- as civil rights lawyer Thurgood Marshall or tion, observed in the article that: mittee, came to Morrow’s defense last week. a trail of controversial decisions such as Boxer described her as ‘‘the epitome of main- ‘‘Margaret has gotten tangled in a web Judge Robert Bork. stream’’ and Leahy charged that a coalition of larger forces about Clinton nomi- Indeed, the story of Morrow’s confirmation of conservative activists is using Morrow as nees. She is a mere pawn in this strug- battle is in significant measure a tale about ‘‘a fund-raising vehicle’’ for their campaign gle.’’ I could not agree more. the fissures within the Republican Party to reduce the power of federal judges. about judicial nominations. Perhaps more importantly, several staunch Mr. President, it is time to free the One conservative federal judge, speaking Republicans said the accusations against nomination of Margaret Morrow from on condition of not being identified, said Morrow are ludicrous. ‘‘My party has the this tangled web that some extremists that, in reality, the campaign against Mor- wrong woman in their sights,’’ declared Shel- are trying to weave. It is time to de- row has nothing to do with her qualifications don H. Sloan, former president of the Los bate and vote on the nomination of or her views, but rather is part of a ‘‘con- Angeles County Bar Assn. and a close ally of scious plan to downsize’’ the federal courts Wilson. ‘‘There is no flag burning for Mar- Margaret Morrow. in the western United States with the goal of garet Morrow,’’ said Sloan, describing the Mr. President, again, I am pleased we remaking them after Clinton’s presidency nominee as both an outstanding lawyer and will take up the nomination of Judge ends. ‘‘a church-going, basketball mom.’’ James Gwin. But we are, once again, Echoed Bonner: ‘‘Margaret has gotten tan- A large number of prominent Republicans gled in a web of larger forces about Clinton have backed the nominee in writing—high- overlooking the nomination of Mar- nominees. She is a mere pawn in this strug- lighted by rare letters of support from three garet Morrow. Ms. Morrow’s nomina- gle.’’ conservative U.S. 9th Circuit Court of Ap- tion is the longest pending judicial The campaign against Morrow began with peals judges—Pamela A. Rymer, Cynthia nomination on the Senate Calendar, a Jan. 28 op-ed piece in The Washington Holcomb Hall and Stephen S. Trott, State and is strongly supported by both Re- Times by Thomas L. Jipping, director of the Supreme Court Justice Marvin R. Baxter and publicans and Democrats. The Senate militantly conservative Free Congress Foun- state appeals court justices Roger Boren, H. dation’s Judicial Selection Monitoring Walter Croskey and Charles S. Vogel, all ap- ought to have the courage and the hon- Project. pointed by Republican governors, also have esty to either vote for her or against Jipping contended that Morrow was likely weighed in on Morrow’s behalf, as have Los her. to become an ‘‘activist judge,’’ who improp- Angeles Mayor Richard Riordan, then-state November 5, 1997 CONGRESSIONAL RECORD — SENATE S11711 Assembly Majority Leader James E. Rogan RECIPROCAL TRADE AGREEMENT cause if you think this is working, the of Glendale and Orange County Dist. Att. Mi- OF 1997—MOTION TO PROCEED logical extension of this is larger and chael R. Capizzi. The PRESIDING OFFICER (Mr. AL- larger deficits. In an effort to unclog the nomination, We are now the largest debtor nation Trott, who earlier served as a high-ranking LARD.). The clerk will report the mo- official in the Justice Department under tion to proceed. in the world, and a significant part of President Reagan, recently wrote to Senate The assistant legislative clerk read that debt comes from the contributions Majority Leader Trent Lott (R-Miss.). as follows; of these trade deficits. So if you think ‘‘I know you are concerned, and properly Motion to proceed to the consideration of the current trade strategy is working so, about the judicial philosophy of each can- S. 1269, a bill to establish objectives for nego- real well and you like this chart and didate to the federal bench. So am I. I have tiating and procedures for implementing cer- you love debt, then you need to be out taken the oath, and I know what it means: tain trade agreements. here saying, gee, let’s pass fast track follow the law, don’t make it up to suit your and continue doing what we are doing own purposes. Based on my own long ac- The Senate resumed consideration of quaintance with Margaret Morrow, I have the motion to proceed. because it is really good for this coun- every confidence she will respect the limita- Mr. DORGAN addressed the Chair. try. tions of a judicial position.’’ The PRESIDING OFFICER. The Sen- Now, Mr. President, I have said be- In their letters, some of Morrow’s backers ator from North Dakota is recognized. fore that I used to teach economics, have sought to clearly establish their bona Mr. DORGAN. Mr. President, the briefly, in college. But I was able to fides with conservative senators. Senate, as I understand it, will be vot- overcome that experience and go on to ‘‘I am a lifelong Republican from Orange ing in about 50 minutes on the con- do other things in life. I am told that County, California,’’ Costa Mesa attorney firmation of a judge. Between now and Andrew J. Guilford wrote Hatch. ‘‘I have in the old days in ancient China, those never voted for a Democrat in any presi- that time, there will be time for debate who would travel from one region to dential campaign. . . . I did not believe on the motion to proceed to the fast- another giving advice of the type we Anita Hill, I am happy that Justice Clarence track legislation, and I intend to take now get from economists had to be Thomas is on our Supreme Court and I re- a few minutes of that time. I believe careful about it. That is because if they gret that [Robert] Bork is not on our Su- Senator WELLSTONE will be here as well gave the wrong advice and stuck preme Court. It is partly my concern over to speak. I wanted to begin, again, dis- around the province too long and it the unfair destruction of Judge Bork’s judi- cussing this question because there was discovered what they had sug- cial career that causes me to enthusiasti- seems to be a substantial amount of cally endorse Margaret Morrow.’’ gested would happen didn’t happen, Backers of Morrow cite her intellect, char- misinformation and there is a substan- they were boiled, cut in two, or put on acter and record of public service. As presi- tial misimpression by many people the sides of two chariots and pulled dent of the Los Angeles County Bar Assn., about what this debate is. apart. We have no such dilemma posed she instituted a voluntary program urging I started yesterday by saying this de- to the economists of today. attorneys to provide at least 35 hours of free bate is not about whether we should Economists of today tell us what legal services yearly for the poor. And she have free trade or expanded trade or they think, for example, on trade. They was a member of the commission that draft- more trade. It is not about that. I say if you pass a trade agreement with ed an ethics code for Los Angeles city gov- think we should have expanded trade. I ernment. Canada and Mexico, we will substan- Morrow’s advocates also assert that her think we should lower barriers, lower tially increase American jobs. We speeches and writings have been distorted tariffs—in fact, eliminate barriers, passed a trade agreement with Canada beyond recognition by her foes, particularly lower tariffs, and have a world in which and Mexico, called NAFTA, and we lost one sentence in a 1988 article on the initia- we have more opportunity to trade. It’s 395,000 American jobs. Where are the tive process that is cited as prime evidence not about those who believe in trade economists who predicted these enor- of her ‘‘activist’’ proclivities. and those who don’t. It is a debate mous gains for our country? They are In the Los Angeles Lawyer magazine arti- about whether our current trade strat- cle, Morrow wrote: ‘‘The fact that initiatives off predicting the results of fast-track are presented to a ‘legislature’ of 20 million egy is working for this country. Does and new trade agreements. It’s just people renders ephemeral any real hope of the current trade strategy work? Or is fine for them to keep predicting, de- intelligent voting by a majority.’’ this country embarking on a trade spite the fact that they are consist- The article was written in the wake of one strategy and are we in the middle of a ently wrong. of the most expensive initiative campaigns trade strategy that, in recent years, The components of this country’s in state history, highlighted by five com- has failed us, hurt our economy, in- economy are personal consumption— plicated measures dealing with insurance jured our manufacturing base, has you see where that is. That is personal and attorney’s fees. At the time, many consumption and expenditures. That is charged that that television advertising moved American jobs overseas and put about the measures was misleading, prompt- us in a weaker position? I happen to one component. There is gross private ing widespread calls for reform. think that is the case. domestic investment. Then, we have Morrow’s article did not call for abolition I want to go through some of this to Government expenditures and invest- of initiatives. The article noted that use of describe why I am concerned about not ments. The fourth component of this the initiative had escalated dramatically in just this fast-track proposal, but our economy is the balance of net exports. the 1980s, discussed possible reforms of the trade policy generally. Mr. President, Now, if you look at this chart, is this initiative and legislative processes and urged this is a chart that shows our net ex- balance of net exports a net positive or lawyers to play a role in improving govern- port balance. All of this red below the ment. a net negative? This shows red. Why? Croskey, an appointee of Deukmejian, said line represents deficits. We have had Because it is a net negative. It is a he was stunned that the article was cited as the largest net export deficits in the drag on our economy. It pulls our econ- evidence that Morrow would improperly leg- history of this country for 3 years in a omy down, not lifts it up. islate from the bench. row, and this year will make it the So when the President or Members of ‘‘She was making a profound and useful fourth year in a row. These are the the Senate come to this Chamber and criticism of the initiative process and how it largest trade deficits in the history of say, gee, we are doing so well, we have could be improved,’’ Croskey said. ‘‘To meta- this country. more exports and we are doing so well, morphose that into the conclusion that she Now, I would ask the question of is a judicial activist has no foundation.’’ and it boosts our economy, they are On Friday, Croskey faxed a letter to Lott those trotting out here supporting the dead flat wrong. They would not pass urging the senator to bring the nomination current trade strategy and saying, the beginner’s course in economics, to the floor for a vote. But it seems unlikely ‘‘let’s again pass fast-track trade au- preaching that message, because net that will happen before Congress adjourns in thority.’’ Is this going in the right di- exports and the current balance of net the next few weeks. Lott, who has the power rection? Is this the right trade strat- exports is a drag on our economy. It is under Senate procedure to hold up the nomi- egy? Is this producing the right re- not a contribution to our economy. nation indefinitely, said a few days ago that sults? If so, where do you intend to go In fact, yesterday, somebody said, he felt no pressure to take any action on ju- dicial nominees during the remainder of the with this? Do you want to take the well, since we have negotiated the year. chart out here and go down to $350 bil- agreement with Mexico under NAFTA, The White House declined to comment last lion a year in net trade deficits, as we now get more cars into Mexico that week on Morrow’s nomination. some are predicting will happen? Be- are produced in the United States. S11712 CONGRESSIONAL RECORD — SENATE November 5, 1997 That is true, we do. It is absolutely used to call them augurs. It was the for this country? The answer is no. The true. Conclusion: Was it a good agree- practice of augury. The practice of au- question is, What will we do about it? ment for our country? No, not at all. gury was to read the flight of birds, Does anyone here have a plan to deal While we get a few more cars into Mex- and evaluate the entrails of cattle, with this growing, mushrooming trade ico, they send far more cars into the among other things, in order to por- deficit that hurts this country? Any- United States. So the net balance of tend the future. In our country we have body? Has anybody heard anybody auto trade between the United States economists. They tell us, on the one come to the floor of the Senate who and Mexico is completely out of kilter. hand, and on the other hand. That is chants this mantra of free trade who In fact, we now import more cars from why Harry Truman said that he pre- says anything about dealing with these Mexico than the United States exports ferred a one-armed economist. Then mushrooming deficits? Or is it for them to the entire rest of the world. So the they could tell us with one hand. What just the act of chanting that satisfies next time somebody stands up and did the economists tell us with respect their soul? Is it just the act of chanting talks about automobiles, and talks to NAFTA? They said if we would pass that satisfies their desire to serve? about what a great deal it is in terms NAFTA with Canada and Mexico, we One would hope that those who come of automobile trade with Mexico, I say would have nearly 400,000—I guess to the floor talking about the need for tell the whole story. If you are describ- 250,000, first, and some said 350,000 expanded trade—not with some chant— ing a checkbook, don’t just stand here —new jobs in America. NAFTA was with some thoughtful analysis of this and crow about the deposits. Tell us passed. What we lost was 167,000 jobs to country’s needs would also understand about the withdrawals. Tell the whole Canada, according to the Economic the need for balanced trade and the story. Policy Institute, and 227,000 jobs to need for fair trade, and the demand So, Mr. President, the circumstances Mexico. that when we say to our trading part- of trade are this. We are involved in a Is that moving in the right direction? ners, ‘‘You are strong, tough, worthy great deal of international trade. I sup- Not where I come from. We were told competitors of ours in the inter- port that. I insist that trade be fair to the trade that would come into our national marketplace, and we demand our country, to our producers, to our country from Mexico would be the of you fair free trade.’’ As a nation, we need to say to China, businesses, and to our workers. And, it product of low-skilled labor. What are ‘‘We demand of you that if you access is not fair. We don’t have the nerve and the largest imports into the United the American marketplace and we will will to require it be fair with China, States from Mexico? Automobiles, allow you to continue to do that, but with Japan, with Mexico—yes, with automobile parts, and electronics. That when you do it you have a responsibil- Canada. That is the problem. The re- is not the product of low-skilled labor. ity to this country. That responsibility sult is huge deficits. This last chart shows that the United is to open your marketplace to our This chart shows that the imports of States has become the world’s largest goods.’’ Don’t tell us that you want to manufactured goods now in this coun- debtor nation. It might not matter to flood our marketplace with Chinese try equal 51 percent of our total manu- people here. I don’t see people coming goods and then keep China’s market- facturing in America. Just 16 or 18 into the Chamber worried about this. place largely closed to American goods. years ago it was down to about 25 per- Three or four of us talk from time to Don’t tell us that you want us to be cent of our manufacturing base. Now time about the growing trade deficit. your cash cow for hard currency, imports equal over 50 percent of our To most people it doesn’t seem to mat- China, and you want to ship all of your manufacturing base. ter. They say, ‘‘Look at the cars we goods to our country. But when it Is that moving in the right direction? send to Mexico. Isn’t that a wonderful comes time to play by the book and I don’t think so. thing?’’ compete, don’t displace America as the Here is a chart that shows all of the They come here and talk about the largest wheat seller to China. That is fast-track authority that we have deposit slips in their checkbook. They not what we expect of a mutually bene- given Presidents. When the Tokyo don’t talk about the expenditures. The ficial trade relationship. round took effect, we had a $28 billion net balance of trade has been negative We need to say to Japan, ‘‘Don’t tell trade deficit at that point. We had fast for our country, and growing worse. It us that you want a $60 billion a year track for the United States-Canada is causing substantial trouble in our trade surplus and deficit with us every Free Trade Agreement. When it took country. The question is: Will we solve year as far as the eye can see. Don’t effect we had a $115 billion trade defi- this? Will someone decide this is not tell us you want to access our market- cit. We gave fast track for NAFTA. At good for our country and decide to place and then tell us we can’t get that point we had a $166 billion trade solve it? Need it be solved by starting American goods into yours.’’ deficit. Then we gave fast track to the a trade war? Should it be solved by That is not fair trade in any town in Uruguay round. Then, we were up to putting walls around our country and this country. And we ought to expect $173 billion in trade deficits. Now we describing ourselves as protectionists? on behalf of the American economy and are at $191 billion in net merchandise No, I don’t think so. That is not the the American people and American trade deficits. point. That is not what we are here ar- workers and producers that we demand It is going to go higher. Do people guing. fair trade treatment from our allies think we are moving in the right direc- The point we are debating is that and our trading partners. tion? I have no idea what town they those who come here with this mantra Canada—we had a free trade agree- grew up in. They think this is success. chant of ‘‘free trade’’—just a mantra ment with Canada. We had an $11 bil- It is not success. It is burdening this chant. You are either for free trade, or lion trade deficit with Canada. We country with an obligation this coun- you are some xenophobic isolationist passed a free trade agreement. Now, try must repay. This country will stooge who doesn’t understand it. You the trade deficit has more than dou- repay and must repay nearly $2 trillion just do not understand what the world bled. of accumulated net trade deficits with has become. You are either for free In my part of the country we have a a lower standard of living in our fu- trade, and you, therefore, understand flood of unfairly subsidized Canadian ture. That is not conjecture. It must be all of the implications of that, or you grain coming through the borders. It is done because other people now have just don’t get it. You are for free trade, a virtual flood. It is sent to this coun- claims in the form of American dollars or you are a blatant protectionist, and try by a state trading enterprise called against our future. shame on you. We are going to call you the Canadian Wheat Board. That would Let me talk for just a moment about ‘‘Smoot and Hawley.’’ That is the way be illegal here in America. It has secret one of the more recent agreements, the this debate moves very quickly. Al- pricing. No one knows the price. It is United States-Canada Free Trade most, instantaneously, it moves into sold by a state trading enterprise. That Agreement. I talked about the descrip- that kind of a discussion. is a monopoly enterprise. The result is tions of the NAFTA agreement. I have The discussion that ought to be an avalanche of Canadian grain coming told previously of the folks in ancient among all of is this. We now have the in undercutting our market and under- Rome who used to predict the future. largest merchandise trade deficit in cutting our farmers. It is patently un- We now call them economists. They the history of this country. Is it good fair. And, we can’t do a thing about it November 5, 1997 CONGRESSIONAL RECORD — SENATE S11713 because it is in the trade agreements vantages to each, they should trade saying to another country, ‘‘Look, you that were negotiated with Canada. with each other. That becomes the doc- have to meet certain standards?’’ Those negotiations were done in secret, trine of comparative advantage. Each We are not demanding you pay the behind closed doors. These secret nego- does what it is their advantage to do same minimum wage they pay in Pitts- tiations pulled the rug out from under and, therefore, trade with each other. I burgh or Denver. We are not demand- our producers. So now when trade is have no quarrel with that. ing that. But you have to meet some patently unfair you still cannot stop it. Of course, when Ricardo wrote that, standards in order to access our mar- I ask someone to come to the Senate incidentally, there was only nation-to- ketplace because we don’t believe floor today or tomorrow and tell us nation trading. There were no corpora- American producers who risk their what you propose to do to demand that tions when that doctrine was described. money to build their plant, hire their Canada stop that flood of unfairly sub- It is not the same now when the doc- workers, and then manufacture their sidized grain. What do you propose to trine is interpreted to mean that a goods ought to have to compete do to demand that? comparative advantage is a political against someone who manufactures the What do you propose to do to demand advantage rather than a natural advan- same product for one-hundredth of the that China open its markets? What do tage, a natural resource advantage, or price or one-twentieth of the price be- you propose to do to demand China some sort of production advantage. cause they don’t have the responsibil- open its markets completely to Amer- What is a political comparative ad- ity to deal with air pollution and water ican imports when it buys airplanes vantage? A political advantage is a pollution, child labor laws, and safe made and manufactured in the United government over in some recess of the workplaces, minimum wages, and all of States of America rather than demand- world when it describes the conditions those kind of things. ing that it wants United States air- of its production as a method of pro- Is there any standard that represents planes manufactured in China? duction in which you can hire 12-year- some standard of behavior that we ex- What do you intend to do to say to olds and pay them 12 cents an hour, pect in being able to access the Amer- Japan that the trade agreement 10 and you can dump the pollution into ican marketplace? Or is this a cir- years ago with them on beef represents the air and the water, and you can cumstance where we have decided that the lowest expectations of trade behav- work the kids in unsafe factories. those corporations, the largest in the ior that this country has? We nego- There is a political advantage in which world who are now international cor- tiated trade on beef. And even our that kind of production is acceptable porations—not national enterprises but cattlemen jumped for joy because we and tolerated, and produces the com- international corporations—have de- finally reached an agreement with modities that are then traded in the cided that the expectation they have of Japan on beef. Guess what the agree- international marketplace. But, that this system is to be able to look at ment is? There remains nearly a 50-per- has nothing to do with the doctrine of their corporation and evaluate where cent tariff on all American beef getting comparative advantage. Absolutely in this world can they produce most into Japan. Is that a fair agreement? nothing. cheaply. Where can they produce least No. It represents the lowest expecta- The question I asked yesterday about expensively? Where can they produce tions we have of our abilities to require trade is one this country needs to con- it, and then where can they ship that our trading partners to treat us fairly. tinue to ask. Is there a requirement for product to the most affluent market- We still have a nearly 50-percent tariff admission to the American market- place and therefore expect maximum on American beef going into Japan. place which, incidentally, has no sub- profit? What on Earth are we doing? Why is stitute on the face of this globe. There Is that the construct of this new sys- this country lacking the nerve and the are more people in other countries. tem, the new global economy? Buy a will to stand up to our trading partners China has far more people than we. But Gulfstream; travel around the world; and say to them, ‘‘Here is a mirror; there is no substitute to having access look out the window and find where treat us fairly because we are going to to the American marketplace. could you produce with the least pos- treat you like you treat us?’’ From our Is there any admission to the Amer- sible expense? What corner is it? Sri trade standpoint, our leadership is ican marketplace? I am not talking Lanka, Indonesia, Bangladesh? What ready for us to say our market is open about cash, or paying money to access corner of the world is it that would to you. We lead in the spirit of free and the American marketplace. I ask is allow you to take that manufacturing fair trade. We lead in the spirit of ex- there an admission price at all? Will plant that you have in Ithaca, NY, shut panded trade. But, we demand more of the admission price be, for example, a it down, fire the workers, move it over- our trading partners. We demand that requirement that you not employ 8- seas, and produce at the least possible our trading partners provide opportuni- year-olds or 10- or 12-year-olds to cost, paying the least amount of ties to American producers, American produce in a production factory and money, having a factory that has the businesses, and American workers to work them 12 hours a day and pay least compliance with air and water access your marketplace just as you them little or nothing? pollution, no bother about worker safe- access ours. Could we at least start way back ty issues, and so on, no OSHA, and then Is this all theory? No, it is not all right at the first step and say, ‘‘Well, produce the same product and ship it theory. Those who come to the floor at least we will not accept the produc- back to Ithaca to be sold on the hard- and talk about free trade will talk in tion of prison labor from a foreign ware store shelf? Is that the construct? the abstract all day long. But what this country to come into our country and I am afraid that is what most of our is about is who will have the jobs and have the socks that are produced in a institutional discussion has been in the economic growth and the oppor- foreign prison hanging on a discount this country about, the new global re- tunity 5 years, 10 years, 20 years, and 50 wall for sale to the American public?’’ ality. The new global reality is we years from now. So we must decide what is right. We should not worry about what percent of I have no quarrel with those who should not allow the work of foreign the manufacturing, in terms of our come to the floor of the Senate and say prisoners to come into our country be- consumption, is done in the United that our future is in global trade. We cause clearly that is unfair trade. So States. We should not worry about our have a global economy. Our future re- then let’s step up the chain a bit, and manufacturing base. We should not quires expansion of trade opportuni- ask ourselves: If not from foreign pris- worry about whether we have a strong ties. I have no quarrel with those who ons—and I think most of us would manufacturing base. What we should have read the economic textbooks that agree that is certainly not fair trade— worry about is consumption. How are describe the doctrine of comparative what about foreign factories that hire we doing as consumers? advantage, and the teachings of Ri- young kids, young children? I men- I suppose we are doing fine as con- cardo, and others, who describe a world tioned 12-year-olds. How about 8-year- sumers. We have ample credit cards in which some can more appropriately olds? How about 250 million children available. In fact, just wait at home produce one product and others can producing around the world? Is there today and open your mail box. You will more appropriately raise one commod- something that we find difficult in this get another invitation for 10 more, ity. To the extent there are natural ad- country in our trade relationship in preapproved, with substantial limit, S11714 CONGRESSIONAL RECORD — SENATE November 5, 1997 and if you are lucky, you can go to a That’s a false dichotomy. The ques- amendments will be in order and there discount store somewhere and probably tion is, Are there any rules that go will be a limited number of hours. How buy something that was produced in a with this? can we as Senators represent consum- country that used kids to produce it, Let me, first of all, start out with ers in our States, how can we represent produced it less expensively, and you one of the major reasons I oppose the working families in our States, how might—not always, but you might—be motion to proceed to S. 1269, this recip- can we be out here fighting for decent able as a consumer to purchase it less rocal trade agreement of 1997. jobs and decent wages, how can we, for expensively at the expense of a dimin- I oppose it on the principle of democ- that matter, represent people in other ished manufacturing base in this coun- racy and representative accountability countries who want to see their stand- try, at the expense of a larger trade alone. I am opposed to fast track for ard of living lifted, not depressed, and deficit, and at the expense of a lower that reason alone. It seems to me that at the same time agree to these kinds standard of living later when this coun- we ought to understand that what we of agreements—we don’t even know try will have to reconcile these huge are talking about is a trade agreement what will be in them—with this proce- and growing trade deficits. which will crucially affect the quality dure that there will be limited debate Mr. President, let me end where I or lack of quality of lives of the people and no amendments. began. I know Senator WELLSTONE that all of us represent, that will affect This is a basic principle of democ- from Minnesota is waiting to speak. I our domestic laws, everything in the racy. I say to my colleagues we should started today by asking the question, world to do with wage levels, with not vote for this fast-track procedure can someone come to this Chamber in consumer protection, with environ- because it denies us the ability to be the next day or so and look at this mental protection, and it is difficult out here representing the people in our ocean of red ink, of net trade deficits for me to understand how we could sur- States. That is what fast track is all that are growing worse year after year render our rights as Senators to an un- about—an up-or-down vote on a giant after year, not better—can someone limited debate and the right to amend- bill which has a critical impact on nu- come here today, someone who thinks ments to an important piece of legisla- merous laws, these laws having a dra- we are on the right path, who wants us tion, indeed, to some legislation that matic impact on the quality or lack of to keep doing what we are doing and will come before us, other agreements quality of life of the people we rep- tell me how they believe this rep- that will come before us up to the year resent. That is one of the reasons I op- resents success? How do they believe 2001 that we have not even seen. Before posed NAFTA and one of the reasons I this contributes to this country’s well- we have even seen these agreements, opposed the creation of the WTO as being? we are supposed to agree to a procedure well. If they believe, as I do, that this whereby we can’t come to the floor and Let me point out that one adminis- ocean of red ink has made this country fight for the people we represent, we tration official testified last year that the largest debtor nation on Earth and can’t come to the floor and try to im- negotiators had effectively concluded it is destructive to this country’s best prove a trade agreement and make it 200 trade agreements since President interests. Then I say, let’s in the com- work better for working families in our Clinton took office in 1993—nearly 200 ing hours talk about what we can do to States. I would oppose this agreement trade agreements—and only two of fix this and don’t tell me more of the just on this principle alone. those utilized fast-track procedures. So same because that’s what you are say- S. 1269 would lock us into fast-track if trade agreements can be so readily ing: We want more of the same. rules for debates and votes that we are reached without the benefit of fast going to be taking later on in the Con- track, then I question the need to im- This is what has happened. We have gress. This will lock us in until the pose these kinds of procedures which big, big deficits, getting worse. ‘‘Let’s year 2001. That is the duration of the are inherently undemocratic. They keep doing more of the same,’’ they bill’s provisions. So what we are decid- shorten the debate. We cannot come say. I say, let’s change. Let’s expect ing right now is whether or not we are out here with amendments. We cannot more and demand more of our trading going to establish highly restrictive come out here to represent people in partners. Let’s have open foreign mar- rules which will govern our debate and our States the way we should. There- kets. Let’s have the nerve and the will votes later on implementing bills for fore, I would oppose this, and I hope to stand up for this country’s economic agreements, the contents of which we my colleagues will as well. interests, and let’s not move quickly to do not know at this time. This whole idea of trade policy, the thoughtless debate that this is be- That is profoundly antidemocratic. which is so important, is supposed to tween those who support free trade and On the principle of democracy, on the be good for all of us, including consum- those who do not. principle of being here to represent ers. Have the representatives of That is not what this is about. It is people in Minnesota, I would oppose consumer groups been involved in this about those of us who believe this this fast-track legislation just on this discussion? Certainly corporations and country has an abiding and growing idea alone. various economic sectors have helped trade problem and is choking on trade Let’s talk a little bit about what to decide what our goals are, which is deficits and must stand up and do could happen between now and 2001. We appropriate. But how about consumers? something about it for this country’s could bring Chile into NAFTA. It may Consumers might be worried about sake and those who believe things are be good; it may not be good. We could downward harmonization of standards. just fine and we ought to keep doing broaden what we call NAFTA to in- Consumers might be worried about more of what we have been doing. That clude additional countries in Latin food safety standards and how this will is what the debate is about. America and the Caribbean, turning affect their children. They might be I will have more to say. Let me yield NAFTA eventually into a free-trade worried about or oppose in principle de- such time as he may consume to the area for the Americas, FTAA. We could plorable child labor conditions in other Senator from Minnesota. look to the Asian Pacific Economic Co- countries. They might be worried The PRESIDING OFFICER (Mr. operation Forum, and we could nego- about or oppose in principle deplorable INHOFE). The Senator from Minnesota. tiate these privileges as well, which violations of human rights of people in Mr. WELLSTONE. I thank the Chair. could be NAFTA-like privileges, vis-a- other countries. I thank my colleague from North Da- vis countries in Asia. We might com- Consumers, the people we represent, kota for his very important leadership plete a worldwide multilateral agree- may say, look, we would like to make in what is really a historic debate. ment on investment which would be sure that this is a part of a trade agree- Let me say at the beginning that I called the NIA. We could do all of these ment. But the position the administra- don’t think this is a debate where two things. tion has taken in fast track is that positions are either we have walls that But the point is that under this pro- these concerns are excluded as trade we put on the border of our country or vision, if we enter into these agree- objectives. But they probably would be we are involved in an international ments up until the year 2001, all of this included as objectives if we had a more economy. We are a part of an inter- will come to the floor of the Senate democratic process for negotiating and national economy. with an expedited procedure. No considering trade agreements. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11715 What I am trying to say is it be- We have an extremely internationally themselves. And if trade agreements do comes, I think, a Catch-22. If we as minded community of corporations, not help to uphold democracy and re- Senators are going to say, ipso facto, larger companies, small businesses, spect for human rights, then they are we give approval to any number of dif- working people and farmers in our deficient. That is my position and, as ferent trade agreements up through the State. And we have done relatively we enter the 21st century, these should year 2001, the provisions of which we do well in this international economy. I be the pillars of American leadership in not even know about yet, then quite am very proud of Minnesota’s perform- the world. clearly what we are saying is we will ance in this international economy. At the same time we are told that not be able to come out here with We have lost some jobs to trade, as America must lead on the issue of amendments to protect consumers and have most States, but we have also trade, we are also told that if we don’t working families, in which case I think benefited from trade. We benefit both negotiate trade agreements, even ones we are going to get the same response from the exports and the imports: The that do not live up to our own prin- from the administration, which is we exports create the jobs, as we all know, ciples, then other countries will do so will not make these agreements part of but the imports are not necessarily a with each other in our absence; we will a trade agreement, basic protection on bad thing. They provide the competi- be left out. That is what we are told. fair labor standards, on consumer pro- tion for consumers and they can push What a contradiction. We must lead tection, on environmental protection. our own domestic companies to do bet- but we must do so by weakening our I think that is the tragic mistake we ter, to be more productive and to be values, by leaving enforcement of labor will be making if we approve fast more efficient. Open trade can contrib- rights out of agreements we negotiate, track. ute significantly to the expansion of by leaving protection of the environ- My second reason for opposing the wealth and opportunity, and it can re- ment out of agreements we negotiate, motion to proceed is that I am not at ward innovation and productivity. It by surrendering our principal linkage all confident—in fact, unfortunately, I can deliver higher quality goods and of human rights concerns to trade pol- am quite certain—that as opposed to services at better prices. icy. improving the standard of living and So, what I am saying is not that we Are we saying that when it comes the quality of life for a majority of should not be involved in international down to it, that money is basically all Americans, these trade agreements will trade, not that our country doesn’t that matters? Is that how America have precisely the opposite effect. have a major role—we have a major should lead the world? Not in my view. Let me also say that I am equally role and play a major role in the inter- Our trade policy should seek to create concerned about trade agreements that national economy. But what I am say- fair trading arrangements which lift up will lead to an improvement of the ing is that the Congress should exercise the standards of people in all nations. quality of life and living standards of its proper role in regulating trade, It should foster competition based on people in other countries. I am all for which is what trade agreements do, so productivity, quality, and rising living trade agreements that lead to an im- that the rules of this international standards—not competition based on provement of the standard of living of trade reflect American values. That is exploitation and a race to the bottom. people in our country and people in how America can lead in the world and As one Minnesotan, Larry Weiss, other countries. I am not in favor of a it is how America should lead in the wrote in our State’s largest newspaper trade agreement that ends up not being world. earlier this week, ‘‘What we want is a global village but global pillage, where What American values are we talking global village, not global pillage.’’ Pro- what you have instead is a systematic about when it comes to trade? What tection of basic labor and environ- violation of the rights of children, of are the American values when it comes mental and food safety standards are basic human rights, of basic fair labor to trade? We believe in open markets just as important and just as valid as standards and of basic environmental at home and abroad. But we also think any other commercial or economic ob- standards leading to profits for the few there is a role for Government to play, jective sought by the U.S. negotiators large multinational corporations and especially when it comes to the protec- in trade agreements. We need to be en- misery for way too many people tion of fundamental labor rights for couraging good corporate citizenship, throughout the world. working women and men, when it not the flight of capital and the dis- Mr. President, we have had extensive comes to the protection of children in semination of good-paying jobs from debate on NAFTA, which was approved, the labor force, when it comes to envi- the United States. and also extensive debate on the Gen- ronmental standards, when it comes to The PRESIDING OFFICER. If the eral Agreement on Tariffs and Trade, food and other consumer protections. Senator will suspend his remarks for a which ultimately led to the creation of These are important values in our moment? the World Trade Organization, the country. When it comes to fundamen- Mr. WELLSTONE. Mr. President, WTO. I voted against implementing tal standards dealing with human since I have to interrupt my remarks, these trade agreements because I was rights and when it comes to democ- I ask unanimous consent that I be rec- concerned that these trade agreements racy, these are important American ognized for additional comments im- would not take our country in the values. The question is, how can we mediately after the vote. right direction. Now, as I think about pursue these values when we are nego- The PRESIDING OFFICER. Without it, I am afraid that the empirical evi- tiating trade agreements? objection, it is so ordered. dence supports this view as well. The Clinton administration believes f Let me say again, I didn’t oppose that the commercial issues are pri- EXECUTIVE SESSION NAFTA or WTO because I am a protec- marily in the body of the trade agree- tionist. I am an internationalist. I ments, which are enforceable with don’t have any interest in building trade sanctions, and that the environ- NOMINATION OF JAMES S. GWIN, walls on the borders of our country to mental and the labor rights issues and OF OHIO, TO BE U.S. DISTRICT keep out goods and services. Nor do I the human rights issues are secondary. JUDGE FOR THE NORTHERN DIS- fear fair competition from workers and A majority of the Senate appears to TRICT OF OHIO companies operating in other coun- agree. I do not, and I don’t believe The PRESIDING OFFICER. Under a tries. I am not afraid of our neighbors. most Americans agree with the Presi- previous order, the Senate will now I don’t fear other countries nor their dent and the majority of the Senate on proceed to executive session and the people. I am in favor of open trade, and this question. I believe, and I think clerk will report the nomination. I believe the President should nego- most Americans believe, that fun- The legislative clerk read the nomination tiate trade agreements which lead, gen- damental standard-of-living and qual- of James S. Gwin, of Ohio, to be United erally, to more open markets here and ity-of-life issues are exactly what trade States District Judge for the Northern Dis- abroad. policy should be all about. That is why trict of Ohio. Indeed, I am aware of the benefits of strong and enforceable labor rights, en- The PRESIDING OFFICER. There trade for the economy of Minnesota, vironmental and consumer protections are now 10 minutes equally divided on and I am told about that constantly. belong directly in the agreements the nomination. S11716 CONGRESSIONAL RECORD — SENATE November 5, 1997 Mr. LEAHY. Mr. President, I am de- Grams Landrieu Rockefeller NAFTA and GATT, is deeply skewed Grassley Lautenberg Roth lighted that the majority leader has Gregg Leahy Santorum toward large corporate interests. That taken up the nomination of Judge Hagel Levin Sarbanes has been our recent experience with James S. Gwin to be a U.S. district Harkin Lieberman Sessions trade agreements. And I want to talk a court judge for the northern district of Hatch Lott Shelby little bit about what has happened with Helms Lugar Smith (NH) Ohio. Hollings Mack Smith (OR) NAFTA. Since 1989, Judge Gwin has served as Hutchinson McCain Snowe NAFTA has been in operation for 3 a judge for the Court of Common Pleas Hutchison McConnell Specter years. And we heard a lot about what Inhofe Mikulski Stevens NAFTA was going to do for all of us. in Stark County, OH. Three times dur- Inouye Moseley-Braun Thomas ing his judgeship, Judge Gwin has been Jeffords Moynihan Thompson We have an opportunity now to look at elected administrative judge by his Johnson Murkowski Thurmond the results with NAFTA. They include peers, and in 1995, he was elected pre- Kempthorne Murray Torricelli loss of jobs, suppression of wages, and Kennedy Nickles Warner siding judge. In addition to his legal Kerrey Reed Wellstone the weakening of food, safety, and pol- service, Judge Gwin has volunteered Kerry Reid Wyden lution laws. for several organizations, including the Kohl Robb Mr. President, if we repeat these mis- North Central Ohio Juvenile Diabetes Kyl Roberts takes, we are only going to condemn Foundation and the Central Stark The nomination was confirmed. ourselves to replicate some of NAFTA’s County Mental Health Center. His The PRESIDING OFFICER. The worst measurable consequences. Let nomination enjoys the strong biparti- President will be notified of the con- me draw for colleagues from a re- san support of Senator GLENN and Sen- firmation of the nomination. spected Economic Policy Institute re- ator DEWINE. f port. This report was issued in Septem- ber of this year and titled ‘‘NAFTA and Despite his exemplary record, one or LEGISLATIVE SESSION more of my colleagues on the majority the States: Job Destruction is Wide- has again demanded a rollcall vote on a The PRESIDING OFFICER. The Sen- spread.’’ EI’s study concluded that ‘‘an judicial nomination. That is, of course, ate will now return to legislative ses- exploding deficit in net exports with the right of any Senator and I do not sion. Mexico and Canada has eliminated object. Indeed, I welcome the vote. I f 394,835 U.S. jobs since NAFTA took ef- expect this rollcall vote to be much RECIPROCAL TRADE AGREEMENT fect in 1994.’’ The report argues that like the last eight in which a unani- OF 1997—MOTION TO PROCEED this job loss contributed significantly mous Senate approves a well-qualified to a 4-percent decline in real median The Senate continued with the con- judicial nomination. I congratulate wages in the United States since 1993. sideration of the motion to proceed. Judge Gwin and his family on this Minnesota, according to this report, The PRESIDING OFFICER. Under achievement and look forward to his lost about 6,500 jobs due to the NAFTA- unanimous consent, the Senator from service on the U.S. district court. related trade deficit between 1993 and Minnesota is recognized. Mr. WELLSTONE. Mr. President, I 1996, contributing to about a 3.8 per- Mr. WELLSTONE addressed the suggest the absence of a quorum. cent drop in real median wages. Chair. The PRESIDING OFFICER. Without Mr. President, last month the Insti- The PRESIDING OFFICER. The Sen- objection, the time will be charged tute for Policy Studies and United for ator from Minnesota. equally. The clerk will call the roll. a Fair Economy published a study Mr. WELLSTONE. Mr. President, it The legislative clerk proceeded to which tracked the performance and ac- is the role of national governments to call the roll. tions of a number of companies which establish the rules within which com- Mr. GREGG. Mr. President, I ask belong to a major corporate coalition panies and countries trade. That is unanimous consent that the order for which is advocating passage of fast what trade agreements do. They set the quorum call be rescinded. track. The study found that the 40 strict rules. If, for example, a country The PRESIDING OFFICER. Without companies which are members of the does not enforce respect for patents, objection, it is so ordered. America Leads on Trade coalition, trade sanctions can be invoked. Mr. GREGG. Mr. President, I ask for from whom all of our offices have re- Mr. President, you can bet that U.S. the yeas and nays on the nomination. ceived pro-fast-track materials regu- companies get right in the face of our The PRESIDING OFFICER. Is there a larly, cut jobs in 89 U.S. plants under negotiators to make sure that the rules sufficient second? NAFTA. The study also documents in these agreements which protect There appears to be a sufficient sec- that almost 13,000 workers who were their interests are ironclad and will be laid off by members of this coalition, ond. strictly enforced. That is what compa- The yeas and nays were ordered. America Leads on Trade, qualified for nies do. You can be absolutely sure NAFTA retraining assistance. And The PRESIDING OFFICER. The that U.S. companies would laugh in the question is, Will the Senate advise and while jobs were being cut by these face of negotiators if they were told firms, these firms’ profits soared and consent to the nomination of James S. that their concerns were legitimate but Gwin, of Ohio, to be U.S. district judge the salaries of their CEO’s were signifi- could be pursued just as seriously in cantly higher than those of executives for the northern district of Ohio? On less enforceable side agreements. this question, the yeas and nays have in other leading firms. My point, Mr. President, is that it is Mr. President, again, looking at the been ordered. The clerk will call the fine to represent the interests of the record with NAFTA, according to Pub- roll. companies. We should do so. But we are lic Citizen in a report released in Sep- The legislative clerk called the roll. also elected to represent other people tember of this year, U.S. food imports The result was announced—yeas 100, in our country, not just large multi- have skyrocketed while U.S. inspec- nays 0, as follows: national corporations. We are elected tions of imported food have declined [Rollcall Vote No. 293 Ex.] to represent the majority of people. significantly. The report charges that YEAS—100 I say, Mr. President, that we should ‘‘imports of Mexican crops documented Abraham Burns Dodd take a very strong interest not only in by the U.S. Government to be at high Akaka Byrd Domenici representing the majority of people in Allard Campbell Dorgan risk of pesticide contamination have Ashcroft Chafee Durbin our country but also in representing a dramatically increased under NAFTA, Baucus Cleland Enzi lot of people, ordinary citizens, wage while inspection has decreased.’’ Bennett Coats Faircloth earners, ordinary people in the coun- Mr. President, our experience with Biden Cochran Feingold Bingaman Collins Feinstein tries we trade with. Because if they do NAFTA can’t be dismissed. Jobs and Bond Conrad Ford not make enough money to demand the wages in the United States have gone Boxer Coverdell Frist products that we produce, then we are down. We have this paradox over the Breaux Craig Glenn not going to do well. last 20 years of workers’ productivity Brownback D’Amato Gorton Bryan Daschle Graham Mr. President, I think this fast-track going up but real wages going down. Bumpers DeWine Gramm agreement, which extends on to Wages have gone down in Mexico, too, November 5, 1997 CONGRESSIONAL RECORD — SENATE S11717 despite the fact that some workers in good deal for large multinational cor- fashion. We do it with safeguards to Mexico are performing high-skill, high- porations and a very bad deal for the make sure that Congress’ constitu- productivity labor. Our trade balance people in Minnesota and the people tional power to regulate interstate and has dramatically worsened with re- across the country. foreign commerce is protected. And we spect to Mexico. This is all in the last Mr. President, by way of conclusion, do it for a short period of time. We also 3 years, post-NAFTA agreement, and I oppose this agreement because of the keep the power to deny the President the number of U.S. firms that have not fast-track procedure alone. I think it is the ability to negotiate with a specific only relocated to Mexico but just as profoundly antidemocratic. I oppose it country, if we don’t want the President importantly have threatened to relo- because of the empirical evidence that to do that. We make sure that the cate to Mexico have effectively held has come in about NAFTA. It is quite President and his people consult with wages down. Mr. President, this is a clear to me this will lead to a depress- Congress on a very regular basis so classic tactic used in any effort to or- ing of living standards of people in our that we know what is going on, but ganize—companies just simply saying, country and people in other countries. more important, so the negotiators ‘‘We will go to Mexico.’’ And finally, Mr. President, I oppose know what Congress wants negotiated Violations of fundamental demo- this agreement not because I am not an or doesn’t want negotiated to ensure cratic rights—we care about those internationalist. I am the son of a Jew- the negotiations reflect the will of rights—as well as basic human and ish immigrant from Russia. I am an Congress. Then, obviously, nothing can labor rights continue to occur regu- internationalist. We are in an inter- become the law of our Nation if it is larly in Mexico. And a NAFTA side national economy. I want our country not passed by the Congress of the Unit- agreement has not significantly im- to lead the way. But I want the United ed States and signed by the President proved Mexico’s environment—the en- States of America to lead the way as of the United States. vironment degradation goes on at the an economic power in this inter- So we are very cautious in giving the Maquiladoras—nor have they done any- national economy by advocating our power to negotiate. But we do it for thing to raise the wages or living values. Our values respect human dig- two reasons: First, it is very imprac- standards of the people. When I visited nity, our values respect human rights, tical for Congress to negotiate with the Maquiladora I thought the environ- our values respect protecting children’s foreign countries, and quite frankly it mental degradation was horrifying. I lives, our values respect the environ- is something that the President does could not believe little children that I ment, and our values respect fair labor on a regular basis on a lot of foreign saw working in the plants. When I working conditions for people. That is policy issues. But more important we talked to people, they were quite often what is lacking in this agreement. have seen opportunities for America’s terrified to even talk to a U.S. Senator That is why I am in such profound op- economic expansion happen because we for fear of losing their job. position to it. have reduced barriers to trade since Mr. President, I simply will say it I yield the floor. World War II. We have a track record one more time, we should be engaged in The PRESIDING OFFICER (Mr. of knowing our economy can expand trade agreements, we should be a vital HUTCHINSON). The Senator from Iowa. when we export. We have a track part of an international economy, and Mr. GRASSLEY. Mr. President, I record of knowing that jobs are created we are, but we can do it without injur- yield myself such time as I might if we export. And we have a track ing people in communities in our coun- consume. record of knowing that those jobs that try and we can do it without injuring The PRESIDING OFFICER. Without do export pay very good wages. people in communities in other coun- objection, it is so ordered. So we start with the proposition that tries if we have the inclusion of en- Mr. GRASSLEY. Mr. President, I we want to have an expanding econ- forceable labor rights and environ- support fair trade because trading cre- omy, that we want to create jobs and mental provisions right in the agree- ates jobs in America. A billion dollars we want to create good jobs because ments themselves. We don’t have any worth of trade creates 18,000 jobs. that has been the track record of ex- like that in this fast-track proposal. Those jobs pay 15 percent above the na- panding foreign trade over the last 50 Mr. President, I said at the beginning tional average of jobs in America. In years. We move forward with con- that I wouldn’t support this agreement my State of Iowa, corporations that ex- fidence, giving this President, as we on the principle of democracy alone. port pay 32 percent higher benefits have given Republican and Democrat To lock ourselves into trade agree- than corporations that don’t export. If Presidents in the past, the authority to ments up to the year 2001—other coun- we are going to continue to grow as a negotiate trade agreements. And we tries in Latin America, Caribbean Nation, we are going to have to be able are confident that the workers and countries, Asian countries—without to export more to create good paying consumers of America will benefit as a even knowing what those agreements jobs in America. result of giving the President this ne- will entail, to not be able to come out Why do we, from time to time as a gotiating authority. here on the floor of the U.S. Senate and Congress, give the President authority We have seen barriers to trade introduce amendments to fight for peo- to negotiate trade agreements? The around the world reduced from an aver- ple in your State or South Carolina or power to regulate interstate and for- age of 40 percent 50 years ago to an av- Iowa or Washington or any other eign commerce is very clearly a power erage of 5 percent today. Those are tar- State, I think denies us as Senators given to the Congress by the Constitu- iff figures. We have seen still, countries what is really the most cherished and I tion. It is one of the 17 explicit powers have higher barriers to trade—both think most sacred responsibility we mentioned in the Constitution. Con- tariff and nontariff trade barriers— have, which is the responsibility to be gress guards its constitutional author- than what we have in the United out here fighting for people. ity very carefully. States. They are up here and we are These trade agreements affect the But we have found that it is very dif- down here. So it is a given. It is com- quality of life of people in Minnesota ficult for Congress, made up of 535 men mon sense, the extent to which the and all across the country. I believe and women, to negotiate with 132 dif- President can get these other countries that in the absence of, as a part of this ferent countries who are part of the to reduce their tariff and nontariff bar- trade agreement, clear fair labor stand- GATT process. Congress, for the large riers to trade to a level equal to or ards and environmental standards and part, can’t even negotiate agreements closer to ours, it levels the playing human rights standards, these trade among its own Members a lot of times. field for our people, both large and agreements will continue to do exactly So you can see the difficulty of Con- small business, and that will create op- what NAFTA has done—depress the liv- gress as a body reaching an agreement portunities to export and enhance the ing standards of people in the United with foreign countries on how to re- economic well-being of our country. States and people in other countries, duce barriers. So I rise strongly in support of S. lead to further violation of human So from time to time under very 1269, the Reciprocal Trade Agreement rights in other countries, not do one strict guidelines we delegate some of Act of 1997, and I urge my colleagues to positive thing about environmental our negotiating authority to the Presi- vote aye on further motions to proceed degradation, and ultimately it will be a dent. But we don’t do it in a willy-nilly and to take up the bill. Mr. President, S11718 CONGRESSIONAL RECORD — SENATE November 5, 1997 this debate is long overdue. The Presi- jobs. In my own State, exporting com- the process, American workers and dent has lacked the authority to nego- panies have 32 percent higher benefits farmers are beginning to feel the con- tiate trade agreements since the com- than nonexporting corporations. sequences of this inaction. pletion of the Uruguay round agree- Trade is a major component of the An American company recently lost ments in 1994. economic growth of even the most re- a $200 million telecommunication con- Since then, the United States has, as cent decade. It is estimated that ex- tract to a Canadian company that en- far as I am concerned, relinquished its ports, as a share of gross domestic joys preferential treatment under its leadership role that we have had over product, grew by 39 percent and ac- trade agreement with Chile. the last 50 or 60 years in international counted for nearly 50 percent of the American farmers currently supply trade issues. And the rest of the world total U.S. economic growth between 90 percent of Chile’s free grain imports. will not wait for a long period of time the years 1986 and 1992. This year, total Those are exports from states like for the United States to act but will U.S. trade will be 30 percent of our Iowa, Minnesota, Nebraska, and Illi- move on without us. total GDP. These statistics show that nois. But our biggest competitors for This bill will restore the United trade is important to this country. It’s this market, Argentina and Brazil, States to its rightful position as the important to the well-being of our enjoy an 11-percent tariff advantage world’s leader in international trade. If economy. over American farmers. And whether nothing else, it’s going to reassert the This bill will allow the United States or not we are going to continually sup- moral authority of the United States to maintain its competitive advantage ply feed grains to Chile—it is only a to be a leader in fair trade negotiations in the global economy. Trade negotiat- matter of time before we lose this im- around the world, as we have been for ing authority is necessary to remove portant agricultural market. What will the last 60 years. barriers to our exports and, hopefully, the opponents of this legislation say to Since the original reciprocal trade some day remove all remaining bar- the farmers of their State and the agreements of 1934, the United States riers to our exports. These barriers are workers of their State when these has taken this leadership role in reduc- taking money out of the pockets of workers and these farmers lose their ing barriers to trade. We learned from American farmers and workers. But jobs and lose income because this mar- the Smoot-Hawley legislation, we without this bill, the rest of the world ket is lost because we have an 11-per- learned from the Great Depression of will continue to raise barriers to our cent disadvantage? This bill allows us the 1930’s, and we learned from the re- products. We will remain on the side- to compete for these markets once sults of World War II that protection- lines—where we have basically been again. ism is not only bad economically, it’s since 1994. The economic benefits of trade nego- bad from the standpoint of promoting Since trade negotiating authority ex- tiating authority are very clear. But peace throughout the world. As I said, pired back then, over 20 major trade let’s remember that trade is also an in the period of time since the United agreements have been consummated. important foreign policy initiative. States started this process of reducing The United States was not a party to Free and fair trade is humanitarian, as barriers to trade—not only our own any of them. Do the opponents of this well as it is economic. Free and fair barriers, but other barriers in other bill believe that other countries are trade promotes liberty and freedom countries—we have seen global tariffs looking out for the interests of the around the world. This bill is going to drop from an average of over 40 percent United States when negotiating these help increase the standard of living of to about 4 or 5 percent today. This dra- agreements? We had an opportunity to our trading partners and, with it, en- matic opening of world markets has led be at the table. Of course, nobody is hance the stability of their political to an explosion of economic growth going to look out for the interests of and economic systems. And when you since World War II, and the United the United States, except our U.S. ne- enhance the political and economic States has been the primary bene- gotiators. We in the Congress are going systems, you open the door, through ficiary of this growth. to see that they look out for those in- trade, for the United States to export American workers are the most pro- terests. We can deny the President’s its democratic principles of liberty and ductive, highest paid workers in the authority to negotiate with a specific freedom. We are seeing enhancement of world. American companies produce country. We will consult with the these institutions in countries where the highest quality products, and President of the United States on a freedom and liberty was foreign to a American consumers have more regular basis on how those negotia- lot of people. Economic intercourse choices of goods and pay less of their tions are going, and advise the Presi- opens the way, opens the door; it is a income on necessities, such as food, dent on what should be negotiated. Fi- window of opportunity for other things than consumers anywhere else in the nally, we have an opportunity to enact that we in America believe in, which world. These are the benefits of fair the final product of any negotiations. you can’t put a dollar and cents value trade agreements. Now, I said that we have had 20 on. We know that when Americans Americans have enjoyed these bene- agreements negotiated, where the travel overseas, when we enhance our fits only because, through U.S. leader- United States was not a party. But I business opportunities with other ship, we have convinced other coun- can show in some of those negotiations countries, this sort of rubbing shoul- tries that freeing up trade and leveling where U.S. economic interests—and ders with people of other countries has the playing field for everybody is criti- maybe humanitarian and nonpolitical benefits that go way beyond just the cal to economic growth, not only in interests, or political interests have dollars and cents of free and fair trade. our country, but around the world. And also been hurt. The people we trade with experience we have led by example. We have low- Chile is a good example of what we American values through the goods ered our own tariffs to show our will- have sacrificed by not having trade ne- they purchase and the relationships ingness to trade with the rest of the gotiating authority. In 1992, President they form when trading with us. In world, and to show that trade is bene- Clinton promised Chile that it would be time, it is likely that they will insist ficial to workers as well as consumers part of the North American Free Trade that their own government uphold and not something to be feared. This Agreement. Five years later, Chile has these values as well. We have seen it bill reestablishes the United States in a free trade agreement with Canada happen in Latin America, Eastern Eu- this leadership role. and with Mexico—the other two part- rope, and someday—I am optimistic— This bill will allow the United States ners of the North American Free Trade we will see it happen in China. to continue on the path of economic Agreement—but not with the United Many scholars believe that a country growth and prosperity, and will show States. Chile is an associate member of must attain a certain standard of liv- the way for other countries as well. the MERCOSUR countries, which is a ing and economic stability before de- Free and fair trade creates jobs—sta- trading block composed of Brazil, Ar- mocracy can even begin. Trade, and ble, high-paying jobs. Exports support gentina, Paraguay, and Uruguay. Yet, not foreign aid, is the mutually pre- more than 11 million jobs in our coun- Chile is still not a member of NAFTA. ferred method of achieving economic try. These jobs, as I have said before, You might say, so what; you don’t like growth and economic stability, which pay 15 percent higher wages than other NAFTA and you are applauding. But in is a forerunner of political stability. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11719 Since 1986, I have hosted, on six dif- This legislation must become law. worker rights—such as a ban on child ferent occasions during the month of I yield the floor. labor or prison labor—could not be con- August in my State, week-long tours of Mr. KENNEDY addressed the Chair. sidered under fast-track procedures, be- Iowa by foreign embassy ambassadors. The PRESIDING OFFICER (Mr. ROB- cause it would restrict the power of the In other words, the embassies here in ERTS). The Senator from Massachu- United States to refuse unilaterally to Washington, DC, send their ambas- setts. modify our own laws in these areas. sadors and/or trade representatives. I Mr. KENNEDY. Mr. President, I sup- There is nothing fair about that. hear from these people coming to my port free trade between the United The bill denies our negotiators the State of Iowa, again and again, from States and other countries. power to push for improvements in an- these international guests, that a mu- Mr. President, I yield such time as I other country’s labor protections. And tually beneficial and healthy trade re- might use from the Senator from it denies our negotiators the power to lationship is much preferred over for- South Carolina. push for improvements on a multi-na- eign aid from the U.S. Government. The PRESIDING OFFICER. The Sen- tional basis as well. Under this legisla- While foreign aid can be fleeting, trade ator is speaking on the time of the tion, there could be no effort to im- builds and expands economies. This, in Senator from South Carolina. prove worker protections in any forum. turn, fuels the democratization proc- The Senator is recognized. There is nothing fair about that. ess. So this bill helps our trading part- Mr. KENNEDY. Mr. President, I sup- Congress should not handcuff our ners help themselves. port free trade between the United ability to negotiate improvements in Mr. President, the opponents of this States and other countries. I have sup- agreements setting basic labor stand- bill want to turn back the clock. They ported fast-track authority in the past, ards that apply to specific nations or prefer a time when this country could and I wish I could still do so. to all nations. Instead, we should use afford to be isolationist, when we could But this fast-track bill is grossly the trend toward globalization of mar- consume all in America that we one-sided and unfair. It goes the extra kets to raise the level of employee pro- produce, and we didn’t have to worry mile to protect intellectual property tections around the world. about exports, and when economic rights and other rights of business. Yet We tried to accomplish this goal in growth could be sustained then by do- it puts major roadblocks in front of the North American Free Trade Agree- mestic production alone. any effort to protect the rights of ment in 1993. The labor and environ- Reminiscing about those past days workers. mental side agreements that accom- may make for good political rhetoric. The bill lists 15 so-called principal panied NAFTA were designed to But that sort of rhetoric is dangerous negotiating objectives. Negotiators are strengthen labor standards and estab- because it simply ignores the economic directed to pursue these matters vigor- lish a forum for resolving disputes. facts of today’s world. They ignore the ously in trade talks with other nations. Many have criticized the effective- benefits beyond economics that come One of the objectives urges negotiators ness of these side agreements, and with from trade. Because, like it or not, we to seek strict enforcement of laws pro- good reason. In 1994, Mexican workers are in a global economy. Our jobs and tecting copyrights, patents, and intel- who tried to organize a union at a Sony standards of living have become to lectual property. The bill even directs Corp. plant in Nuevo Laredo were fired, some degree dependent on trade with negotiators to seek criminal penalties and some were beaten. This brutality other countries. We can’t afford to for violations of intellectual property violated Mexican law, and the NAFTA build walls around this country, and we rights. enforcement authorities found that the can’t afford to turn inward. If the Unit- But the bill is silent about any cor- Mexican Government had failed to ed States were to do that, other coun- responding effort to promote workers’ comply with its obligations under the tries would do it as well. And that rights. Negotiators are forbidden to en- labor side agreement. But none of the could be dangerous. I just saw a quote courage other countries to improve employees was rehired, and no fines recently, that I believe to be accurate. worker protections. Any provisions de- were assessed against either the Mexi- ‘‘If merchandise is not going to cross signed to strengthen labor protections can Government or the company. The borders, soldiers will.’’ It is a preven- or improve another country’s enforce- side agreements were not enforced. tive of war. It is a promotion of peace ment of its labor protections cannot be Weak as they are, side agreements when we trade. given fast-track treatment. like these are barred from consider- We must lead. We still have all the No previous fast-track bill took such ation under the present bill. Such side advantages: A highly skilled, educated a one-sided and discriminatory ap- agreements could not be given fast- work force; we have technology, cap- proach. For example, the 1988 fast- track treatment. They would be sub- ital, and, most important, a sense of track law included a specific objective ject to full debate and amendment in entrepreneurship that not only benefits to ‘‘promote worker rights,’’ and this both houses of Congress. America, but when this is promoted was an important part of the legisla- But under this defective fast-track around the world, it is going to benefit tion. bill, an agreement making it a crime all of the economies of the world. We The present bill is unprecedented. to infringe a copyright would be given also have the most stable economic and It’s fast-track for business and no fast-track treatment, and rushed political system the world has ever track for labor, and that isn’t fair. through Congress with limited debate known. The United States has the most We should not make it impossible to and without amendment. to gain by leading and the most to lose use other countries’ desire for access to This double standard is unacceptable. by sitting on the sidelines. U.S. markets to urge improvements in Trade affects goods and business prof- This bill is the first step back into working conditions. Leaders in other its, but it affects workers’ lives and reasserting our moral authority to lead countries often say their door is open health as well. We can’t deny the link- in leveling the playing field in inter- to such initiatives. But this bill actu- age. Yet this bill treats property rights national trade, an authority that we ally prevents our negotiators from tak- far better than it does labor and envi- have exercised since the 1930’s. ing advantage of such opportunities. It ronmental protections. Surely the life Mr. President, I want to remind my prevents the United States from using or health of a working man or woman colleagues that the question is not the incentive of access to our markets deserves at least equal priority. whether future trade negotiations will to persuade a country to improve It’s also true that NAFTA has failed occur. They are happening right now working conditions for its employees, to live up to our hopes. The Labor De- under our very noses between countries even in cases where the issue is prison partment has certified that 127,000 all over the world. I have cited 20 spe- labor or child labor. There is nothing American workers lost their jobs as a cific examples since 1992. Rather, the fair about that. direct result of trade with Mexico and question is whether the United States The bill also prohibits fast-track con- Canada under NAFTA. Some experts will be at the negotiating table pro- sideration of any provision that would say the number may be as much as four tecting the interests of our citizens for modify U.S. labor or environmental times higher. the good of this country and for the standards. Any agreement that seeks The administration has announced good of the world. to create internationally-recognized that it will seek hundreds of millions S11720 CONGRESSIONAL RECORD — SENATE November 5, 1997 of dollars more for trade adjustment frustrations of my political career has America such as we had never imag- assistance to help workers dislocated been that of all the issues that we deal ined possible. It created new, massive by foreign trade. When American firms with, the hardest issue to get people to economic superpowers in places like move their American plants to foreign understand is the trade issue. This is South Korea, a poor agricultural coun- countries in search of higher profits not a new problem. Disraeli, the Brit- try. through cheaper labor, the American ish Prime Minister in the 19th century, South Korea is a perfect example. In workers left behind pay a heavy price. once said, ‘‘Not one person in 10,000 un- 1953, they had a per capita income of Trade adjustment assistance can derstands the currency question, and $50 a year. They were devastated by the help, but to many workers, it is little yet we meet him every day.’’ And by Korean conflict. But through world more than funeral expenses. It’s obvi- ‘‘the currency question,’’ he meant the trade their per capita income grew to ously not enough to offset the anti- value of the pound relative to foreign over $6,000. worker, antilabor bias of this discrimi- currency in international trade. What The same thing happened in Taiwan. natory fast-track bill. Disraeli said would certainly be re- And the attraction of that economic The five measures the administration flected in the debate here today. growth in Taiwan, in Hong Kong and announced earlier this week, through I would like in my speech to try to do Singapore, the sheer ability of the mar- the World Trade Organization and the several things. ket system in world trade to feed the World Bank, are another small step in No. 1, I want to try to explain why hungry, to create opportunity and free- the right direction on labor issues. But this issue is so critically important. dom and happiness, the shift in the bal- again, four studies and a promise don’t No. 2, I want to respond to those who ance of power that that economic ex- fix the problems with this bill. say they are opposed to expanding plosion created literally tore down the I urge the Senate to reject this unfair trade, that they are opposed to fast Berlin wall and liberated Eastern Eu- approach. This bill puts the rights of track because they are concerned rope. And while Chiang Kai-shek had business on a pedestal, and leaves the about low-wage workers, because they long since been in the grave, the eco- rights of workers in the gutter. That are concerned about child labor, be- nomic miracle on the little island that kind of discrimination is unacceptable. cause they are concerned about pov- he fled to and the economic miracle in No worker should be treated with less erty, because they are concerned about Hong Kong built by world trade was so dignity than a compact disk. I oppose the environment. powerful that it literally forced main- this legislation, and I urge my col- Finally, I want to do something that land China to begin to change its sys- leagues to defeat it. we don’t do enough of here, and that is tem and converted an enemy into a Mr. GRAMM addressed the Chair. we don’t attack this trade issue head trading partner. It holds out the great The PRESIDING OFFICER. The Sen- on. prospect of creating cooperation with ator from Texas. I know I have many colleagues who the one country in the world that can Mr. GRAMM. Mr. President, I rise in come to the floor and talk for endless be our rival in the 21st century, and support of the fast-track legislation, hours about how wonderful it would be that is China. and I yield myself so much time as I to build a wall around America and go Now, we know the lessons of the 20th might use. hide under a rock somewhere, how if century. We know the wars that in- The PRESIDING OFFICER. The Sen- we could simply imitate the economic volved conflicts over resources; where ator is recognized. isolation of North Korea, that all Germany invaded Russia to get access Mr. GRAMM. Mr. President, I think would be wonderful and well in Amer- to resources; where the Japanese in- it is important that people understand ica. And generally those of us who vaded Manchuria to try to get access that the debate about fast track is a know better don’t take the time to to mineral resources that in many debate about trade. If we reject fast come over and respond. I want to be cases were denied in trade agreements track in the Congress, we are sending a sure I take the time to respond today. around the world. We know the totali- signal to the whole world that the First of all, trade is critically impor- tarianism of the 20th century. United States of America, which has tant. The most important contribution When I am talking about trade, I am been the strongest proponent of trade of America in the post-World War II pe- not just talking about goods and serv- in the post-World War II period, is riod has been the explosion of world ices. I am talking about a profoundly backing away from that commitment. trade. We didn’t rebuild Europe with moral issue, a moral issue that really If we reject fast track, we are saying to the Marshall plan. We didn’t rebuild boils down to the question of whether the world that the position we have Japan with foreign aid. We didn’t stop we are going to repeat, beginning with taken in the post-World War II period communism in Greece and Turkey with a vote on fast track, the policies that is a position that we are now vacating. economic assistance. I don’t in any created the terrible crises that we We are saying to emerging markets all way mean to criticize the Marshall faced in the 20th century. over the world that we are not going to plan or the Truman doctrine. They Did we learn from history or are we be the dominant force in trade on this were both critically important. They going to repeat it? I hope we learned. planet. sent a very clear signal to the world This is a profoundly moral issue be- That message, in my opinion, would that we intended to learn from the les- cause it is about freedom. It is about be a devastating message for world sons of World War II and that we were doing something about grinding pov- trade. It would be a devastating mes- going to resist the expansion of com- erty that for the great mass of man- sage in terms of America’s leadership. munism. But what stopped communism kind literally beats down the humanity And I am prayerfully hopeful that in in Europe, what preserved freedom in of working men and women and their the end reason will prevail and that we Greece and Turkey, what rebuilt children all over the world. will not send that message. Japan, what created an economic mir- Mr. President, I respect my col- Mr. President, I have had an oppor- acle in Taiwan and Korea, what leagues and I know they mean well, but tunity, as a Member of the Senate for changed the balance of power, what it is hard for me to sit here and listen 13 years and as a Member of the House won the cold war, what tore down the to people say that they want to reduce for 6 years before that, to speak on Berlin Wall, what liberated Eastern trade because they are concerned about many subjects. My colleagues have Europe, and what set more people free poverty. It is very difficult for me as heard me speak on the budget on many than any victory in any war in the his- an old economics professor to sit here occasions. I think my colleagues under- tory of mankind was the growth of and listen to people say, ‘‘Well, I would stand that I have great passion about world trade. like to trade with China or Mexico or that subject. But as compared with By opening up American markets and Chile or any other place in the world world trade, the budget is a secondary expanding trade first with Europe and but I am concerned that workers are issue. The issue that we debate today is Japan, then with a special focus on poor. I am concerned about child labor. the most important issue that we will Turkey and Greece, then with a focus And so as a result I do not want to debate during this Congress. on Korea and Taiwan, we literally cre- trade.’’ Americans by and large do not under- ated a wealth machine, and that Why does child labor exist? In the stand the trade issue. One of the great wealth machine brought prosperity to War of 1812 we had 8-year-olds in the November 5, 1997 CONGRESSIONAL RECORD — SENATE S11721 Navy. We had child labor in America the expansion of trade with Mexico has rejoice in, it is we are not hearing peo- up until the Civil War. Why did we meant bringing 1990’s technology into ple say today, as they did in this de- have it? Why does it exist all over the Mexico, especially along the border, to bate 2 years ago, that we ought to copy world in poor countries? It exists be- replace 1950’s technology, and the net Japan. We used to have Members of the cause it is a product of poverty. Wages result is that our new investments and Senate who would get up and talk are low because of poverty. Working the expansion of growth and oppor- about how wonderful it would be if our conditions are poor because of poverty. tunity in Mexico give them the first economy could be like Japan’s, if we If you really care about workers in an- real opportunity that they have ever put up barriers to cheat our consumers other country, you want to trade with had to improve their environment. and drive up the price of goods, if we that country because only by trade, So if you really care about workers had Government and business conspire only by expanding prosperity both here and children, if you really care about to have these massive plans to domi- and there can we do something about the environment, use the one tool, the nate the world market. If we could just child labor, can we do something about one tool that we have that can help do what Japan does, they said, things poverty. people in other countries share in the would be wonderful. I do rejoice that So if you really care about workers’ great bounty we share, and that tool is nobody says that anymore. They don’t rights in other countries, you do not trade. say it anymore because the Japanese solve their problem, you do not deal Now, I have never heard so much economy is on its back. with child labor by building a wall be- poor mouthing in my life as the poor Government-dominated trade fails. tween us and that country. You eradi- mouthing we have heard about trade. The marketplace succeeds. You hear cate child labor by promoting trade, You would think Americans are a all of these tales of woe about how which promotes prosperity, which al- bunch of incompetents, that our work- manufacturing jobs every day are leav- lows parents to put their children in ers are all these guys standing on as- ing the country. The truth is that our schools and keep them there until they sembly lines with big pot bellies, who exports in manufacturing are up 180 are educated. are, in the words of that old country percent in the last 10 years. That is So I reject the argument that is and western song, ‘‘having daydreams nine times the rate of growth of manu- made by people who oppose trade and about night things in the middle of the facturing exports in Japan. That is six oppose fast track, because that is what afternoon.’’ times the rate of growth in exports in this fast track debate is about. It is In listening to our colleagues, you Germany. about trade. It is about whether we are would think that we are just complete One of the problems the President going to continue to trade or whether incompetents and that we need to build has on fast track today is that for the we are going to start building walls. a wall around America to protect us last 6 years he has pussyfooted with all And I totally reject the idea that those from having to compete with other these protectionists. He has engaged in who oppose this bill are protecting low- people. little acts of protectionism and now all income workers and children. That is totally out of sync with re- of a sudden he comes back to the same I am protecting low-income workers ality. America dominates the world proponents of protectionism that he and children. The policy that I promote market. Study after study of competi- has been coddling with political favors of trade, expanded economic oppor- tiveness concludes that America is the for 6 years and says, ‘‘Oh, by the way, tunity, expanded freedom and expanded lowest-cost producer in the world of we have a profound national interest prosperity, that is the only system in manufactured products, not because we now and you have to stand up for history that has ever done anything have low wages but because we have trade.’’ No wonder he is having trouble. about poverty. Trade, free enterprise, skilled workers and because we have The President has been on three sides individual freedom, those are the great the best tools in the world. We domi- of a two-sided issue for 6 years. But he tools for destroying poverty. So if you nate the world marketplace. We are the is on the right side of this issue, and I really want to stop child labor in the world’s largest exporter, the world’s am very proud to be with him. world, if you really care about workers’ largest importer. Our living standards Let me make another point about rights, then join the President and join are 20 percent higher than Japanese trade. Let me give two examples of how me in tearing down barriers and ex- living standards. Germany has a living we benefit from trade even when we are panding trade. standard about 74 percent of our level. not buying goods from abroad, and Likewise, I reject the notion that The American economy has grown in then I want to talk about how we bene- those who want to promote a good en- the last 10 years by 17.8 million new fit from trade by buying foreign goods. vironment worldwide can do it by pre- permanent, productive, taxpaying jobs. Some of you will remember that in venting trade. I ask my colleagues, and And since employment in Government the 1980’s, there was this massive push I ask those who are listening, to under- has declined, this represents a net addi- to get Ronald Reagan to protect the stand that the population of the world tion to the number of people who are American automobile industry. In fact, is growing, that people are going to be involved in the marketplace creating I bought a Chevrolet truck in 1983. It hungry, and unless we can create an goods and services. That is 5.7 million was a clunker. That truck never was economic system worldwide that is more jobs than Germany and Japan any good from the first day I bought it going to feed them, they are going to combined have created in the last 10 until the Lord provided somebody from continue to destroy the environment in years. an ad in the newspaper who came and their countries. And yet, to listen to our colleagues, bought that truck. Everything you can Environmentalism, the concern our jobs are running offshore; our jobs imagine happened to it. And, if you about your surroundings, is a product are going to Japan; our jobs are going will remember, in the early 1980’s, all of affluence. You can only be concerned to Germany; our jobs are going to these protectionists were coming, about the environment when you have China. We have the highest levels of banging on our doors, saying, ‘‘We are enough to eat. And if you really care employment we have had in the history going to be driven out of the auto- about the environment, if you really of the country. We have created 17.8 mobile industry. General Motors is are concerned about global warming, if million new jobs in the last 10 years. going to be broke. Ford is in crisis. you are concerned about the expansion Our economy is booming. And yet to Chrysler is on the verge of collapse and of pollution, you ought to be for trade listen to our colleagues pour ashes over has to have a Government bailout.’’ because trade creates prosperity, and their heads and talk about helpless, in- Thank God Ronald Reagan said, in es- prosperity makes it possible for people competent Americans, you would think sence, ‘‘compete or die.’’ to improve the technology and in the we were incapable of producing or sell- In 1983 you didn’t want to buy a car process to improve the environment. ing anything. or truck produced on Monday because Our colleague from Massachusetts The reality is that in 10 years our ex- on Monday autoworkers were still talked about Mexico. Mexico is a rel- ports are up by 130 percent. The exports thinking about the weekend. And you atively poor country, but as a Senator of Europe are up by 55 percent. The ex- didn’t want to buy a car or truck pro- from a State that shares 1,200 miles of ports of Japan are up by 24 percent. duced on Friday because on Friday border with Mexico, I can tell you that But if there is one thing that I could they were thinking about the coming S11722 CONGRESSIONAL RECORD — SENATE November 5, 1997 weekend. And you probably didn’t want with one ear, two Senators. If we could were successful in reducing tariffs to to buy one produced in the middle of afford to do this job for nothing, we China and so now we are not going to the week because they weren’t doing would probably do it for nothing. But be importing as many textiles from much thinking. I am not just talking most Americans work because they China. It was just hailed as a great vic- about people on the assembly line, I am want to earn money to buy things. The tory. talking about all those white collar end result of economic activity is con- Well, go to the places where real, managers in all those fancy offices in sumption. honest-to-God Americans shop and Detroit. They were getting their It never ceases to amaze me how per- look at the quality goods and look at fannies kicked because they were doing verted things get. I will give an exam- the prices. By protecting the textile in- a rotten job and they were ripping off ple. We now have a suit filed with the dustry, we are literally taking the the American consumer. So, rather International Trade Commission by shirts off the backs of children of work- than make tough decisions and go to salmon producers. I think we have ing families in this country, and no- work, they came to Washington and about 500 people in America, mostly in body seems to care. It is astounding to they whined and they begged and they the State of Maine, who are involved in me in the U.S. Senate that we all care pleaded and they said, ‘‘Protect us, growing salmon. They have filed an un- about producers, but nobody cares protect our jobs.’’ And they wrapped fair trade practice suit against Chile. about consumers. We can get a couple themselves in the American flag. It Chile produces massive amounts of of rich executives, business owners, was our duty, they said. We couldn’t salmon. They have a comparative ad- textile manufacturers to come to let all our automobile jobs go to Japan vantage because they raise salmon all Washington and holler, and pretty soon and Korea and all those places where year long. They start out with eggs, we are falling all over ourselves to pro- people worked hard. So we were sup- they produce these little fingerlings, tect them from competition. Nobody posed to protect them. they feed them—the whole process is seems to care that American children Ronald Reagan said no. And what absolutely an economic marvel. When and their parents pay twice what they happened? Well, in 1991, I bought a new the salmon are 14 pounds, they harvest should for textiles today. truck. This time I bought a Ford, but them, they clean them, the fillets are The paradox is that it is a losing bat- that didn’t make the difference. In shipped fresh to America and Europe. tle. Britain lost the textile industry to fact, I just recently bought a Chevrolet And what has happened? Salmon prices New England, because the textile busi- with the same result. That 1991 truck have gone down dramatically. ness is noncompetitive in a high-wage was the best vehicle I have ever bought Salmon is a superior product. When I country. The exception, of course, is in my life. Not only did I drive it; now was growing up I never ate any salmon. the part that is done by machines. We my son is driving it. It has never bro- Rich folks ate salmon. Salmon has the dominate the world in machine-made ken down. It has never had a major me- right kind of cholesterol, as our col- textiles, in fact, we are making a lot of chanical problem. It is an absolute league from Alaska would say. Because money in the textile business today, marvel. of the ability of Chile to produce salm- but where you have to do hand work Where did it come from? I owe the on, literally tens of millions of Ameri- and where you have a lot of people in- quality of that truck to the Japanese cans have changed their diets, and now volved, you tend to be noncompetitive. and to the Koreans, and I would like to eating salmon is becoming almost as This is not a new phenomenon. Eng- thank them today. I owe it to them be- common as eating steak. land lost the textile mills to New Eng- cause they forced companies and the So what now are we doing? Right now land, and then New England lost them United Auto Workers to stop this crazy we have the International Trade Com- to the South. In fact, the Congress first system where workers and managers mission which, thanks to a President adopted the minimum wage to try to were always in conflict. So when I who today is for trade, is full of protec- prevent textile mills from moving from bought that Ford Explorer in 1991, the tionists, and they are in the process of New Hampshire to Georgia. But it United Auto Workers were proud to determining whether we should lit- didn’t do any good; they moved any- have their name on it along with Ford erally take quality food out of the way. And New Hampshire is much bet- Motor Co. Quality was job 1. mouths of tens of millions of Ameri- ter off for it because they became a I never will forget when General Mo- cans. Does that make any sense what- high-tech State. tors said they had to determine wheth- soever, to take food out of the mouths Japan has lost the textile industry, er they were going to be in the auto- of tens of millions of people to protect Korea is losing the textile industry, mobile business in the year 2000. They the jobs of 500 people. God never grant- and China will lose the textile indus- are still the automobile business, big ed them or anyone else the eternal try, because the textile industry, at time in the business. They are produc- right to be in the salmon business. least in hand work, goes where there ing some of the best cars and the best An argument that carries no weight are low wages. But to protect a handful trucks in the world. here but carries weight with me—and I of jobs, we are willing to literally steal If we had engaged in protectionism in always love to make it because I feel from millions of working families. 1982 and 1983, we would be getting the good when I make it—is, who gives Every day these arguments are made same lousy cars, the same lousy anybody that right? Who has the right and people cloak themselves in the trucks, and we would be paying more. to tell me, a free man in a free country, American flag when they are arguing In fact, when Bill Clinton became that some 500 workers in the State of for greedy, petty special interests to President and, as a sop to the auto- Maine can rob me by making me buy cheat the consumer. And I thought mobile industry and the labor unions, their product instead of buying a somebody ought to say something put a tariff of several thousand dollars cheaper, better product produced some- about it. on sport utility vehicles, what do you where else? Who gives them the right Now, I want to sum up with three think happened? The price of sport to do that in a free country? Am I only quotes. I thought about a way to end utility vehicles went up by thousands free to go to the street corner and this speech, and I want to end it with of dollars. It was just theft, reaching shout, ‘‘Bill Clinton is a dope,’’ or a quote from Ronald Reagan, one of the right in the pockets of working fami- ‘‘PHIL GRAMM is crazy’’? Or do I have a last things he ever said on trade during lies and pulling out thousands of dol- right to do something that is real, like his Presidency. But I want to quote lars. That is an example of what I am go and use my money to feed my fam- first from a Democrat, a Member of talking about. ily in the way I choose? The argument Congress from New York, who was a I think one of the mistakes we for protectionism is really an argu- Member of Congress at the turn of the made—I am not going to go much deep- ment for theft. century. Nobody has ever heard of him, er into this—but one of the mistakes I want to give another example. but I discovered him in reading a biog- we made is that we talk so much about Every day we hear about textiles. raphy on Winston Churchill. I discov- jobs we forget why we work. There are Every day we hear this clamor of pro- ered him because Bourke Cockran, a few people in America who have re- tectionist arguments about how we from New York, was a friend of Church- markable jobs. I see two of them here have to protect textiles. And do you re- ill’s mama, and he profoundly influ- today who are at least listening to me member this big deal about how we enced Churchill on trade. In fact, November 5, 1997 CONGRESSIONAL RECORD — SENATE S11723 Churchill changed parties several When Pericles came to the point in This is a very important vote we are times, as we all know, but he never, the speech where he wanted to explain going to have. We have not voted on ever changed his position on trade. how you could know that Athens was a anything in this Congress that is more Churchill from the beginning of his ca- great city, here is what he said, and in- important than giving the President reer to the end of his career was a free terestingly enough, he measured the fast track. If we reject fast track, we trader. He was a free trader principally greatness of Athens by its imports. are saying that special interests domi- because of Bourke Cockran, who was What a far cry it is from today; what nate the trade policies of America, that one of the great orators in the history he understood, we have forgotten. And the world’s great trading nation, the of this country. I just want to read a he understood it 2,500 years ago: most successful nation at trade in the short statement from him because it ‘‘The magnitude of our city draws history of the world, the nation that says more than I can. I am not a very the produce of the world into our har- has benefited more from trade than good reader, and so I apologize. We for- bor, so that to the Athenian the fruits any other country in the history of the get what trade is about. In the midst of of other countries are as familiar a lux- planet, we are going to be saying that all this special interest and ignorance ury as those of his own.’’ for the first time in the postwar period that dominates this debate, we forget Only a great country has the capac- we are giving up our position of world what it is about. ity through trade to get the whole leadership in trade, that we fear to Cockran is an American. He is in world to work cooperatively to pro- trade. London. It is July 15, 1903. America is mote its prosperity. I don’t say that, and I don’t believe Trade is like love. That is the mir- a protectionist country. England is the it. I hope that we are going to give the acle of this thing. It is not as if we are only country in the world that has rel- President fast-track authority and con- getting rich by trade at the expense of atively open markets. Cockran is tinue a process that will continue our other countries, because trade makes speaking to the Liberal Club in Eng- prosperity and economic growth. I us rich and it makes them rich. It is land, and ‘‘liberal’’ at the turn of the yield the floor. like love: The more of it you give century means what ‘‘conservative’’ Mr. DORGAN addressed the Chair. away, the more of it you have. That is means today—freedom. With this rel- The PRESIDING OFFICER. The Sen- why it is magic. That is why it is so atively short paragraph he sums up ator from North Dakota is recognized. what trade is about. I want to read it: hard to understand. Mr. DORGAN. Mr. President, I yield I want to end with a quote from Ron- ‘‘Your free trade system makes the as much time as he may consume to ald Reagan. President Reagan has whole industrial life of the world one the Senator from North Dakota, Sen- never gotten the credit he deserves for vast scheme of cooperation for your ator CONRAD. Because no one else is on benefit.’’ standing up for trade. It was one of his great achievements in an era that was the floor and because of the time bal- He is talking to the British people. ance, I ask unanimous consent that At this moment, in every quarter of the dominated by protectionism. But here is what he said, and I urge my col- Senator FEINSTEIN from California be globe, forces are at work to supply your ne- allowed to follow the presentation by cessities and improve your condition. As I leagues, especially on my side of the speak, men are tending flocks on Australian aisle, people who love Ronald Reagan, Senator CONRAD. fields and shearing wool which will clothe to look at these words before we have The PRESIDING OFFICER. Without you during the coming winter. On western our final vote on this issue. Ronald objection, it is so ordered. lands, men are reaping grain to supply your Reagan said this about trade, and it is Mr. DORGAN. Mr. President, let me daily bread. In mines deep underground, men so accurate in terms of fears versus say, the Senator from Texas, Senator are swinging pickaxes and shovels to wrest GRAMM, as always, makes an interest- from the bosom of the Earth the ores essen- hopes: ‘‘Where others fear trade and eco- ing and a challenging presentation. He tial to the efficiency of your industry. Under is a very capable Member of the Sen- tropical skies, hands are gathering, from nomic growth, we see opportunities for bending boughs, luscious fruits which in a creating new wealth and undreamed-of ate. few days will be offered for your consump- opportunities for millions in our own I will say, I listened with great inter- tion in the streets of London. land and beyond. Where others seek to est. One of the areas I think where we Over shining rails, locomotives are draw- throw up barriers, we seek to bring want to discuss some disagreement is ing trains, on heaving surges, sailors are pi- them down; where others take counsel whether, as he proposes, the American loting barks, through arid deserts Arabs are people do not really understand the guiding caravans, all charged with the fruits of their fears, we follow our hopes.’’ I am for free trade. I am for the fast- issue of trade. I think the American of industry to be placed here freely at your people do, in fact, understand the issue feet. You alone, among all the peoples of the track bill. These two issues cannot be Earth, encourage this gracious tribute and separated. We have colleagues who say, of trade, and that is precisely what is enjoy its full benefit, for here alone it is re- ‘‘Oh, I’m for trade, but I’m against fast requiring and causing this kind of dis- ceived freely, without imposition, restriction track.’’ We all know that without fast cussion in the U.S. Senate. or tax, while everywhere else, barriers are track, we are not going to have an ex- Having said that—I will expound on raised against it by stupidity and folly. pansion in trade. We all know that that at some later time—let me yield That speech could be given today without fast track, Europe will tie it- now to my colleague, Senator CONRAD. about the United States of America. self to South America in their new free The PRESIDING OFFICER. The Sen- Ultimately, England went protection- trade area, and we will end up with less ator from North Dakota is recognized. ist, and when it did, it declined as a and less trade and less and less influ- Mr. CONRAD. I thank my colleague world power. Ultimately, America pro- ence and with less and less prosperity. from North Dakota, Senator DORGAN. I moted trade, and when we did, we rose So the issue here is trade, and the also listened with great interest to the to world prominence. issue is freedom. Do you care about remarks of our colleague from Texas, What a different world we live in working people in America and around Senator GRAMM. I, too, was struck than the world we have evolved from. the world? If you do, you ought to be when he said the American people We now have leaders who talk about for trade, because trade will raise our don’t understand trade. I must say, I trade as a problem, who talk about im- living standards, and it will raise the disagree. I think the American people ports as if something is wrong with living standards of others. If you are understand it very well. I think they buying something from someone else. really concerned about child labor, understand that freer trade is in our When Pericles was delivering his fu- about low wages, about grinding pov- interest, but I also think they under- neral oration, honoring the dead of erty around the world, the way you stand that sometimes we don’t do a Athens, one of the great speeches in help do something about it is through very good job of negotiating these history, he talked of trade as a sign of trade. You don’t do something about it trade agreements with other countries, greatness. Once a year, they had a by building a wall around America. If and, as a result, we quite often find ceremony where they would bring the you really care about the environment, ourselves at a disadvantage. That is bones of Athenian warriors who had you are not going to improve the world not in America’s interest. We ought to died defending Athens during that environment by promoting poverty. We do a better job. year, and they would all be buried to- are going to promote it by expanding When it is a question of this fast- gether. trade and by expanding prosperity. track proposal, I must say, I favor fast S11724 CONGRESSIONAL RECORD — SENATE November 5, 1997 track, but I don’t favor this fast-track What are the advocates of this legis- have a circumstance in which we enter proposal because it is flawed. It should lation so afraid of? Why can’t we have into trade agreements, but there is no be fixed, but there has been no serious votes on amendments? Why can’t we mechanism for fixing mistakes that attempt to fix it. have a debate? We certainly didn’t are contained in agreements we have Mr. President, without question, we have it in the Senate Finance Commit- already entered into?’’ are the most competitive nation in the tee that has the jurisdiction over this Well, as shocking as that might world. Others have higher barriers legislation. I think I found a number of seem, that is precisely what we have. erected against our goods than we have reasons maybe why they don’t want to We have a circumstance in which, if erected against theirs, and that is why have amendments considered and they there is a mistake in a previous agree- fundamentally it is in our interest to don’t want to have a chance for debate ment, there is no mechanism for fixing negotiate trade agreements with other and discussion. Maybe it is because it. nations to reduce their barriers to our there are flaws in this agreement and Some will say, who are trade experts exports. There is no question that is in they would just as soon not discuss and listening, ‘‘Well, the Senator is not America’s economic interest. For that those flaws. right. We do have a way of fixing reason, I voted for the GATT agree- Mr. President, I think I detect at things. We can file a section 301 case.’’ ment, the General Agreement on Tar- least three serious flaws in what is be- Well, let me just say, for people who iffs and Trade. But I also recognize fore us. First of all, we have to under- are not aware of the technical details that the devil is in the details, and we stand what fast track is all about, and in trade legislation, section 301 is like have seen that both with the Canadian I think every Member here understands an atom bomb. Section 301 means we Free Trade Agreement and the North that fast track means that individual take retaliatory action against a coun- American Free Trade Agreement. Members give up their right to amend try. But they, under trade agreements There were flaws in those trade agree- legislation implementing trade agree- we have signed, can then retaliate ments, serious flaws that should have ments. against us. And guess what happens? If been fixed before America signed off on That is a remarkable thing, because we go the route of a 301, which is rarely those trade agreements. the greatness of this body is that every done—rarely done—the country that Before I go further into the details of Member has a right to offer amend- we retaliate against for an unfair trade what was wrong with NAFTA and the ments on every bill in order to alter it, practice retaliates in turn against us. Canadian Free Trade Agreement and change it, to fix it. But we give up that Obviously, then our country is very re- how those flaws came about, I would right under fast track. The idea is that luctant to take such an action. That leaves us without any practical like to report to those who are listen- that is important to do, so that the way to fix the mistakes in past agree- ing on what happened in the Senate Fi- President can negotiate trade agree- ments. I was prepared, in the Finance nance Committee in considering the ments, because other countries would Committee, to offer an amendment as fast-track legislation that is before us, be reluctant to negotiate if the result- part of the negotiating instructions to because I find just the process that has ing agreements were then subject to our trade negotiators that they ought led us to where we are today disturb- amendment on the floor of the Senate. to pursue a mechanism for fixing trade ing. Mr. President, the idea is that in ex- agreements that are flawed. Is that Senator GRAMM said this is the most change for giving up the right to such a radical idea? Sounds like com- important measure this Congress will amend, that Congress will be fully con- mon sense to me. We ought to have a consider this year. I don’t know about sulted in negotiating those trade agree- way of fixing agreements that have that, but certainly it is a very impor- ments. It is called consultation. Mr. President, I have been here now mistakes that are flawed. tant measure. I would guess the Amer- Mr. President, I am not just talking ican people think, well, the commit- through GATT, through NAFTA, and through the Canadian Free Trade theoretically here. I am talking out of tees have gone over this, they have de- Agreement. And I think I can report, practical experience, of a bitter experi- bated it, they have discussed it openly without fear of contradiction, that the ence, that my State had with the so- and freely, Members have had a chance notion that Congress is consulted is called Canadian Free Trade Agree- to offer amendments. That is how the largely a formality. It is more of a ment. process usually works around here, but wave and a handshake than it is any In North Dakota, we produce Durum that isn’t what happened on this bill kind of serious consultation with Con- wheat. We produce the vast majority of that is before us today. No, no, some- gress. None of that would matter so Durum wheat produced in the United thing quite different happened. much if it did not mean that we lose States. In fact, nearly 90 percent of the We had a meeting, a closed meeting, the opportunity to correct flaws in Durum produced in America is pro- outside of the public eye in the back agreements before they are signed off duced in North Dakota. room of the Finance Committee. A on by our country. Before Congress is Durum, for those who may not be fa- number of us had a chance to say, look, faced with an up-or-down vote, you ap- miliar with that term, is the type of we think there are flaws in this legisla- prove it all or you kill it. Under fast wheat that makes pasta. Of course, tion that ought to be fixed. The chair- track, it is all or nothing. pasta has enjoyed a dramatic increase man told us he didn’t want any amend- That is what is seriously wrong with in consumption in this country, and ments when we went out into the for- what is in front of us. We have given up North Dakota has been the place that mal session. I didn’t know that he the right to amend but we have not has provided the raw product. meant by that that he wouldn’t permit gotten in exchange any serious con- Well, in the Canadian Free Trade any amendments, but that is what hap- sultation process to try to prevent mis- Agreement there was a flaw, there was pened, because when the closed meet- takes from being made before agree- a mistake, and that provided an enor- ing ended and we went out into public ments are reached. That is not in mous loophole for our neighbors to the session, something occurred there that America’s interest. north to put Durum wheat into our I have never seen in my 10 years in the The result has been, in previous country on an unfair basis. And you U.S. Senate. There was no debate, agreements, that very serious flaws know what happened? Canada took ad- there was no discussion, there were no have been included that were injurious vantage of that loophole, that mistake, amendments, because none were per- to America’s interests. that flaw, and before you know it, they mitted. In a minute I will discuss one that went from zero percent of the United Instead, this legislation was com- has affected my State and affected it States market—zero—to 20 percent of bined with the Caribbean Basin initia- seriously. the United States market. tive and the tax provisions of the high- The second point I want to make, the I have a chart that just shows what way bill. They were wrapped all into second flaw that I have detected in this occurred in Durum after the Canadian one vote, no rollcall. The three of them legislation, is we still have no means of Free Trade Agreement. together were voice voted, and no correcting previous agreements that This is before the Canadian Free amendments were permitted. That is contain mistakes. Trade Agreement. You can see they what happened. That is not my idea of I know people who are listening must had zero percent of the U.S. market— the legislative process. think, ‘‘How can that be? I mean, we zero. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11725 After the Canadian Free Trade NAFTA is a perfect example of what recting prior agreements that have Agreement, and its flaw, Canada start- that can mean. flaws and, third, that we consider the ed dramatic increases in exports to the This chart shows that in the NAFTA currency valuation of the country with United States. In fact, they reached agreement we were able to secure a which we are negotiating so that we this level, which represented 20 percent tariff gain of 10 percent by that trade can be confident they will not engage of the U.S. market. agreement because we were able to in a dramatic devaluation and com- We then were able to put limitations convince Mexico to reduce their tariffs pletely offset what we have accom- in place—something we could no longer by that amount. So we got a tariff gain plished at the negotiating table—are do because of succeeding trade agree- of 10 percent in terms of our competi- commonsense measures. ments that we have signed—and we tive position. I hope my colleagues, when I have a were able to reduce their unfairly trad- Mexico, shortly thereafter, devalued chance to offer these amendments, will ed Canadian grain back to a more tol- its currency by 50 percent, completely carefully consider them because this is erable level. But we cannot put this overwhelming and negating what we an important matter. We have a chance kind of limitation in place anymore. had accomplished in the trade negotia- to make this fast-track proposal much So we are left with a circumstance tion. Is it any wonder that we went better, to guard the interests of the where one of the major industries in from a trade surplus with Mexico be- people of the United States much bet- my State is vulnerable to unfair com- fore NAFTA to a $16 billion trade defi- ter. petition. cit with Mexico today? But nobody Mr. President, I will conclude as I Some would say, ‘‘Well, it sounds to wants to talk about it, nobody wants began. I have supported well-crafted me, Senator, like you’re just afraid of to have an amendment offered that trade agreements. I was proud to vote competition out in North Dakota.’’ Oh, deals with this question. for GATT. But I have opposed those no. We are not afraid of competition. All I am asking is that when we are agreements that I thought were flawed We are ready to take on anybody, any- negotiating with a country, that we and not in the national interest. time, head to head in any market any- ought to get a certification from our Now, again, all Members are going to where. We are among the most com- President that he has examined the have to make a decision and a deter- petitive agricultural areas in the currency stability of the country with mination. And I say to them, as a world. But we cannot take on the Ca- which we are negotiating so that he member of the Finance Committee nadian farmer and the Canadian Gov- can assure us that there is little risk of that considered the legislation before ernment. a dramatic devaluation that would us, that it is flawed, and it ought to be And that is what we are being asked completely wipe out what we accom- fixed. Hopefully, we will have the op- to do. Because, while the Canadian plished at the trade negotiating table. portunity to do that on the floor of the Common sense. It just makes com- Free Trade Agreement says—and says Senate, which we did not have in the mon sense. You look before you leap. clearly—neither side shall dump below Senate Finance Committee. You examine the currency stability of I thank the Chair and yield the floor. its cost in the other’s market, in a se- the country with whom you are nego- Mrs. FEINSTEIN addressed the cret side deal, never revealed to Con- tiating so that you can assure yourself Chair. gress, our trade negotiator at the time they are not going to have a dramatic The PRESIDING OFFICER (Mr. told the Canadians, ‘‘When you cal- devaluation that wipes out what you GREGG). The Senator from California. culate your cost, you don’t have to accomplish at the trade negotiating Mrs. FEINSTEIN. Mr. President, I count certain things. One of the things table. ask unanimous consent for such time you don’t have to count, you don’t That amendment was never consid- as I may consume. have to count the final payment made ered because, again, no amendments The PRESIDING OFFICER. Without by the Canadian Government to the were permitted in the committee. objection, it is so ordered. Canadian farmer.’’ Mr. President, I would like to be able Mrs. FEINSTEIN. Mr. President, I Guess what the Canadians did? They to vote for fast track. I believe in freer rise this afternoon to offer my views on dramatically decreased the payments trade. But I also believe that there are this fast track proposal before the Sen- that count, and they increased the serious flaws in this fast track proposal ate. I have followed the debate very amount of their final payment to the that deserve debate and discussion and carefully. California has a significant Canadian farmer. And they do not have votes on amendments. We were denied stake on issues of international trade, to count one penny of the final pay- all of those in the Senate Finance Com- an important engine driving the Cali- ment for the purposes of determining mittee. I have never seen it in 10 years fornia economy today. whether they are dumping wheat below in the U.S. Senate. We are now going In recent weeks, we have heard a their cost into our market. I know that to have a chance here on the floor to great deal about fast track, often with is a flaw. That is a mistake. That is un- offer those amendments—at least, I broad, sweeping claims. Some have fair. But you go and try and fix it, and hope we are—I hope the majority lead- said those voting against fast track are what you will find is there is no mecha- er is not going to come out here and protectionist, xenophobic or antitrade. nism for fixing past flawed agreements. fill up the tree and prevent amend- Others have claimed fast track is the I think we ought to tell our nego- ments being offered by Members. Sun, the Moon, and the stars. I want to tiators, as part of their negotiating in- Mr. President, this is a serious mat- take a few minutes to describe just structions, ‘‘Go and try to get a mecha- ter. Senator GRAMM again said this is what I think fast-track authority is all nism for fixing trade agreements that the most important vote we are going about. Fast track is the abrogation of have mistakes.’’ But that amendment to have in the Senate this year. Again, congressional authority to have some could never be offered in the Senate Fi- I am not sure I would put it at the very leverage on trade agreements and the nance Committee because no amend- pinnacle, but no question this is an im- ability to offer amendments on the ments were permitted. Why? I have portant matter. floor. never seen that in my 10 years in the The fact is, the United States has a This fast-track bill provides the U.S. Senate in any committee on which lot to gain and a lot to lose. We have a President, for the remainder of his I have served. No amendments per- lot to gain if we really accomplish term, plus an optional extension, the mitted—none. That reminds me of a freer trade in this world because we are authority to negotiate any trade trea- different country and a different time— the most competitive nation on the ty in the world and bring it rapidly to not the United States. globe. We have a lot to lose if we nego- this body, without an opportunity to Well, the third C that I talk about is tiate flawed agreements. We have a lot offer amendments. Article 1, section 8, currency valuation, because I think to lose if we continue on the path that of the U.S. Constitution gives the Con- that, too, is something we ought to leads to a nearly $200 billion trade defi- gress responsibility over economic consider. cit in part because the United States matters. Through fast track, we are ef- There is no consideration in these has not been tough enough in negotia- fectively abrogating this responsibil- trade negotiations about the currency tions with other countries. ity. stability of the country with whom we It seems to me these three C’s that I There is no State in this Nation that are negotiating. have outlined—of consultation, of cor- has a more important role on issues of S11726 CONGRESSIONAL RECORD — SENATE November 5, 1997 trade than the State of California. The The bottom line is, I think, the argu- those with political clout, rather than stakes are very high. ment that the United States can’t ne- the most worthy. These currency fluc- California is the seventh largest gotiate trade agreements without fast tuations may foreshadow major bank- economy on Earth. We are the eco- track, based on the record, are incor- ing scandals in the future. nomic powerhouse and the economic rect. Senator BYRON DORGAN has ably If you combine questionable banking engine of the Nation, responsible for 13 pointed out that the agreements that practices with currency fluctuations, percent of the Nation’s economy and 20 have been the subject of fast track, we may see a scenario in which the percent of the Nation’s export. have been followed by a growing nega- only course open to some of these na- Free and fair trade is an integral part tive trade balance. Yet we can’t do tions is for them to press harder to in- of California’s economic future. But anything about it so we don’t talk crease their exports and erect import free and fair trade can only be brought about it. barriers, regardless of what the trade about through a level playing field, Under NAFTA, a $1.7 billion trade agreements say. Further, the United with everybody playing by the same surplus in 1993, after NAFTA’s passage, States does not have a great record in rules. My job as a U.S. Senator is to grew to a record trade imbalance of enforcing many of the agreements that stand up and articulate my State’s in- $16.3 billion by 1996. Our trade deficit are on the books. As a result, U.S. terests when its needs and concerns are with Canada has also grown, more than manufacturers would lose exports and not being taken into consideration. doubling from $11 to $23 billion annu- market share. Simply stated, fast track gives the ally. Free and fair trade is an integral part President total authority to negotiate We can’t amend NAFTA, we can’t of California’s economic future. But any trade agreement. change NAFTA. All we can do is give 6 under fast track, California’s two Sen- Is fast track absolutely necessary? months’ notice and withdraw. The ators could very easily get rolled de- We have heard a great deal of comment stakes are very big now, and with- spite the State’s enormous economic and concern, calling for the passage of drawal is not apt to happen politically. stake. Many States, each with two fast track: ‘‘We have to do it, we have The GATT agreement, which I voted Senators, don’t have nearly the eco- to do it, you are un-American if we for, has contributed to the largest mer- nomic interests that we do. My State don’t do it.’’ But the fact of the matter chandise trade deficit in U.S. history, could face an agreement that very is this President has concluded 220 rising in each of the last 4 years to an much disadvantages California’s indus- trade agreements, and only 2 of them, all-time high of $165 billion today. tries, and I would have no opportunity the GATT Uruguay round and the I think these mounting trade deficits to try to correct that. North American Free Trade Agree- should be a loud and clear message We are the leading agricultural State ment, have required fast-track author- that America should negotiate better in the Union, home to 10 percent of the ity. trade deals rather than give up con- Nation’s food processing employment. The California wine industry is the In fact, other than GATT and gressional responsibility through fast Nation’s leader, producing 75 percent of NAFTA, there have only been three ad- track. To me, these experiences say, the wine and 90 percent of the wine ex- ditional agreements in the Nation’s ‘‘Go slow. Fast track may well back- ports. history that have been adopted fire.’’ We are the leading high-technology Yet, through fast track, we are say- through the fast-track process: the State, providing 20 percent of the Na- ing we have to proceed quickly, we Tokyo round of GATT in 1975, the Unit- tion’s jobs in high technology. ed States-Canada Free-Trade Agree- have to give up all scrutiny, we have to We lead the Nation in entertainment, ment in 1998 and the United States-Is- give up all right of amendment: do it providing 50 percent of the Nation’s rael Free Trade Agreement in 1989. fast, do it fast. production. These are the only five agreements in I would like to discuss one area We are home to 5 of the Nation’s 10 the history of our Nation that have where we face significant concerns. largest software firms. We are the Na- been passed using the fast-track proc- Right now, the international financial tion’s leader in biotechnical and phar- ess. markets are more complex than ever. maceutical products, providing as Yet we have seen exports increase in Today’s international trading picture much as 30 percent of the Nation’s out- our country by 50 percent since 1991, is more diverse and complicated than put. Yet, under fast track, I am asked without fast-track. Today, exports are ever before. Take, for example, the cur- to give up any opportunity to fight for 30 percent higher than they were in rency problems some Southeast Asian my State’s interests on the floor of the 1993. The trade growth and the trade nations are experiencing, which may U.S. Senate if they are disadvantaged agreements are occurring without fast- well create a very unanticipated result. by a trade agreement negotiated by the track authority. Earlier this month, the International administration. I cannot agree to those Now, it may well be if I were the Monetary Fund announced it is prepar- restrictions. President of the United States, I would ing an emergency line of credit for In- Let me talk for a moment about spe- want to have fast track, too. It would donesia. The Indonesian rupiah has cific concerns with S. 1269, the Finance make my life simpler. I would not have dropped more than 18 percent against Committee bill. I have listened in- to deal with a Congress that can some- the dollar since late September. Thai- tently to the debate other the past sev- times be recalcitrant or difficult and, land received a $17 billion loan from an eral weeks. I have scrutinized amend- at our best, obstreperous, and at our IMF-led consortium in August, which ments which may be offered to this leg- worst, an actual impediment. represents the second largest IMF res- islation. In my view, the major defi- However, the Senate is supposed to cue package ever. ciencies in the fast-track legislation be a deliberative body and I feel some- Indonesia and Thailand now join the before the Senate have not been ad- times no legislation is better than just Philippines as Asia’s former ‘‘economic dressed. In some ways, the legislation any legislation. Yet with this fast tigers’’ who have looked for IMF emer- before the Senate today is weaker in track matter, we have seen a great gency help due to financial crisis. As addressing those concerns than in prior rush. We are told we can’t wait until you may recall, following NAFTA, the fast-track laws. next session or next year to have more United States extended the largest Under S. 1269, trade negotiations that thoughtful consideration on this issue. loan package to Mexico when it faced involve issues such as protecting U.S. We have to do it right now. financial crisis and the peso was de- manufacturing, labor, or environ- I must tell you, the stakes are very valued. Much to Mexico’s credit, this mental standards, cannot be included big for my State. Fast track forces me loan was promptly and fully repaid. in the fast-track process but will have to give my authority to offer changes. Many knowledgeable people involved to be dealt with separately where they I give up my ability to pick up the in the Pacific rim trading theater be- could be the target of amendments, phone and tell the administration, lieve these currency fluctuations are Senate filibusters, or bottled up in ‘‘Hey, if you negotiate this, I’m going very serious harbingers of things to committee and never see the light of to try to amend it on the floor because come. In many of these countries, day. it disadvantages industries in my banking practices may also be a sub- Let me give an example. Unlike pre- State.’’ ject of concern, with loans extended to vious fast-track laws, S. 1269 requires November 5, 1997 CONGRESSIONAL RECORD — SENATE S11727 that a provision of a trade agreement, PCB’s and benzene are prohibited in of the Nation’s output of wine and 90 to be entitled to receive the protection the United States in order to protect percent of the Nation’s wine export of fast track, must be ‘‘directly related public health and safety, but they re- products. to trade.’’ main legal, low-cost solvents in Mex- NAFTA had an immediate negative Previous fast-track laws have pro- ico. This reduces a Mexican company’s impact on the California wine industry. vided fast-track benefits to those pro- manufacturing and cleanup/disposal Coincident with NAFTA, Mexico gave visions of an agreement that ‘‘serve the costs to the disadvantage of United Chilean wines an immediate tariff re- interests of U.S. commerce’’ and are States companies, but raises signifi- duction, from 20 to 8 percent, and a ‘‘necessary and appropriate’’ to carry cant health risks. guarantee of duty-free status within 1 out the agreement. Mexico has a significant problem year. By contrast, United States wines So what is the practical effect of the monitoring and controlling hazardous face a 10-year phaseout of a much high- changes? If a trade agreement included waste. Less than 20 percent of the in- er Mexican tariff, disadvantaging them a component to fund border cleanup, dustries producing hazardous waste in in the Mexican market. these cleanup provisions could not be Mexico, 70 out of 352 industries, report The result was predictable: United protected by fast-track rules because proper hazardous waste disposal. Fewer States wine exports to Mexico, follow- they are not considered ‘‘directly relat- than 20 percent of those industries ing NAFTA, dropped by one-third, ed to trade.’’ They would have to pro- meet their obligations. A 1995 report while Chilean wine exports to Mexico ceed through the regular legislative indicates that up to a quarter of all nearly doubled. Chilean wine picked up process, subject to amendments, fili- hazardous waste, about 44 tons daily, the market share lost by United States busters, with no certainty the provi- originating in the industrial border wineries dominated by California. sions would ever receive a vote. area in Mexico, the maquiladora area, During the NAFTA debate, the ad- For example, NAFTA implementing simply disappears with no documented ministration pledged, in writing, to legislation reduced tariffs in Mexico, end point. No U.S. companies could get correct inequities within 120 days of Canada, and the United States and cre- away with that. But companies in Mex- NAFTA’s approval. I would like to ated the Border Environmental Co- ico are able to get away with, under- quote from a letter from the U.S. Trade operation Commission and the North mining public health and safety, and Representative: American Development Bank to fund gaining a cost advantage along the . . . I will personally negotiate the imme- environmental cleanup. Although way. diate reduction of Mexican tariffs on U.S. adopted in the NAFTA fast-track ap- In Tijuana, 7 miles south of Califor- wines to the level of Mexican tariffs on Chil- proval process, these two entities nia, lead and arsenic is, today, collect- ean wines and, thereafter, have hem fall par- would not be eligible for fast-track if ing in an uncontrolled pile. In the allel with future reductions in such tariffs. they were included in a future trade United States, these materials, which You would think that at least by agreement brought under S. 1269’s fast- are found in every battery, can only be today, 31⁄2 years later, the tariffs would track authority. handled in a ‘‘contained or controlled’’ be equal. Not so. Three and one-half S. 1269 limits congressional oppor- environment to protect against leak- years later, they remain enshrined in tunity to remedy worker safety, wage, law and there seems to be nothing we and environmental concerns. Section age, and they are buried in clay or por- celain-lined pits. In Tijuana, no clean- can do about it. (2)(b)(15) of the bill seeks to prevent As a matter of fact, as a result of an foreign governments from ‘‘derogat- up has occurred. I would like to offer another exam- unrelated trade dispute, Mexico actu- ing,’’ or reducing, a country’s laws or ple. Molded plastic, such as the simple ally raised tariffs on United States regulations to provide a competitive types of chairs or tables in many back- wine to the pre-NAFTA level of 20 per- advantage to its domestic companies or yards, emits toxic fumes during the cent, an increase above the 14 percent to attract investment to the country. rate it had reached. The 20-percent tar- That sounds good, but what about molding process. In the United States, those countries who have weak or even the fumes must be captured during iff remains in effect today, represent- no environmental or labor standards in manufacturing under what’s called an ing a wipeout of United States market the first place? There is no provision in exhaust hood. But in Mexico, the share to the Chilean wine entering this legislation that would obligate cheaper manufacturing process is con- Mexico. countries to enact fair labor or envi- ducted in open air without an exhaust From Mexico’s standpoint, the strat- ronmental laws or to remedy serious system, allowing for the release of the egy is clear. You keep the tariffs up for inequities that already exist between harmful toxins. a period of time, eliminate United the United States and other countries. Now, these are specific, ongoing ex- States market share, and another Furthermore, because efforts to ad- amples of disparities in environmental country comes in that doesn’t face dress these inequities would not be standards that serve as either an in- those tariffs and builds up sales and considered ‘‘directly related to trade,’’ ducement for manufacturers to lower market share. That is exactly what has any agreement addressing these issues their standards, or a competitive dis- happened, chapter and verse. would not be protected under fast- advantage to U.S. manufacturers who GATT, which I supported, also con- track rules but would be subject to are required to meet higher standards tained monumental inequities for this amendment, filibuster, and other pro- to protect public health and safety. important industry. This time, the cedural rules that could prevent them They also are part of the sucking sound problem was in the European Union, from ever seeing the light of day. that Ross Perot described, in which and this is how it worked. Even though Additionally, even in those cases U.S. industries are drawn to Mexico to the United States had the lowest tar- where a country has derogated or failed manufacture, because they don’t have iffs of any major wine producer, United to enforce environmental or labor laws, to abide by the higher standards in the States negotiators agreed in the Uru- S. 1269 sets up an impossible enforce- United States. There is no remedy for guay round to drop our tariffs by 36 ment standard. Not only must the this under this fast-track law. percent over 6 years, while the world’s United States prove that a country Without a remedy available as part largest wine producer, the European waived or reduced a law or regulation, of trade negotiations, these disparities Union, dropped its tariffs by only 10 but it must also prove that it did so to in standards only encourage the flow of percent. obtain a competitive advantage. Under more jobs to areas with the lowest As a result, the current U.S. tariff on this legislation, the onus is on the standards and, hence, the lowest manu- all wine products is an average of 2.4 United States to prove a country’s mo- facturing cost. The low-cost areas will percent, compared to the EU’s current tives. include many Asian countries in the average tariff is 13 percent. Let me give you some examples of future. GATT also disadvantaged Califor- the competitive disadvantage U.S. Now, I would also like to give you a nia’s entertainment industry, which al- manufacturers would face, disadvan- specific example illustrating the prob- lowed European restrictions on U.S. tages the United States would be un- lems and why I feel so strongly. The programming to persist. Europe didn’t able to require other countries to cor- example involves the California wine accept the GATT commitments on the rect: industry, which represents 75 percent audio-visual services. Instead, the EU S11728 CONGRESSIONAL RECORD — SENATE November 5, 1997 maintained its 1989 European Union the dint of their labor, to buy a home, us as individual Members of the Sen- Broadcast Directive, which limits the buy a car and send their kids to good ate, the question is, why will the Con- market for U.S. movies and television schools, so that the next generation gress today be willing to do this? Why broadcasting. France, for example, re- can do better than the previous genera- have Congresses over the past two or quires that 40 percent of all feature tion. I don’t think that is an unrealis- three decades been willing to pass such films and transmission time must be of tic dream. It has always been the legislation and transfer a portion of French origin, while 60 percent must be dream of America. We can have appro- their authority to the President? The of EU origin, leaving only 40 percent of priate environment and labor incen- answer is very simple. That is, if we do the market open for United States tives. not do this, we don’t have the oppor- competition. Another area for reform is an effec- tunity to enter into trade negotiations So, you see, GATT and NAFTA, both tive dispute-resolution process. Farm- because our trading partners will not the product of fast-track during my ers face phytosanitary disputes on the come to the table. time here in the Senate, left California border all the time. Arbitrarily, coun- Why would countries like Great Brit- industries with significant disadvan- tries and border agents can deny access ain, France, Argentina, and Japan not tages. During those negotiations, I to products like wheat in China or want to come to negotiate with the called the administration and I said, grapes in Australia or citrus in another United States unless the President had ‘‘These are huge industries in my State country because of some claim some- this authority? Most of those countries and they will be hurt under this agree- where. These barriers may have little have some form of a parliamentary ment.’’ And I was effectively rolled. basis in science or public health, but form of government in which the exec- Why should I, or any Member of this may reflect political judgments. utive branch and the legislative branch body, give up our opportunity to stand In conclusion, let me only say that I are effectively merged. Therefore, when the Prime Minister speaks on be- on this Senate floor and move an represent a huge State. I don’t serve on half of the Government of the United amendment to protect an industry the Finance Committee. The only op- Kingdom, as an example, he or she is within our State? portunity I have to protect the indus- That is what fast-track does, ladies tries and people of my State is the abil- not only speaking as the head of the and gentlemen. That is what fast-track ity to stand up on this floor and intro- executive branch but speaking as the head of the legislative branch and as does. duce an amendment and say to the ad- the head of the political coalition Through fast-track, we knowingly ministration, ‘‘If you do this, I am which controls the Government. So abrogate our responsibility, despite the going to filibuster the bill, I am going what the Prime Minister says at the requirements of the Constitution of the to amend the bill, and I am going to negotiating table there is the political United States, article I, section 8, protect the people of my State.’’ capability and expectation of his or her which gives that authority to the Con- Fast track is a total surrendering of ability to deliver on behalf of the Gov- gress of the United States. this ability, without knowing what As I said earlier, if I were President, ernment of the United Kingdom. agreements are coming down the pike, In the case of the United States, we I might want fast-track authority. I without knowing what I am going to be don’t have this integration of the exec- am not; I am a U.S. Senator. I am asked to accept, or the industries are utive and the legislative branch, and elected to protect the people and the going to be asked to do. Fast track has frequently the President is not the industries and the workers in my to be reviewed in that framework be- head of a coalition that effectively con- State. cause that is the true framework in trols Government. We have one of Now, there are ways that the legisla- which this decision is going to be those examples today in which the tion can be strengthened. One is to re- made. President is of one political party, the quire that tariffs in other countries be I thank the Chair. I yield the floor. leadership of the Congress is of an- reduced first, before we commit to Mr. GRAHAM addressed the Chair. other. So our trading partners would The PRESIDING OFFICER. The Sen- deeper reductions in already lower say, why should I sit down with the ator from Florida is recognized. United States tariff levels. All too President to negotiate the best agree- Mr. GRAHAM. Mr. President, I speak often, the price of modest tariff reduc- ment that I can? And, like all agree- on behalf of the passage of the legisla- tions abroad is deeper reductions in the ments, trade agreements contain a tion which will soon be before us which United States. U.S. producers need a heavy component of compromise. You will authorize the President to enter level playing field. gain some benefits in area A, and you into negotiations on behalf of this Na- Another important area for improve- give some benefits in area B in order to ment is stronger enforcement. We need tion as it relates to trade and trade-re- reach an agreement that both sides stronger enforcement tools, if trade lated matters. will feel is advantageous. Our trading Mr. President, we refer to this legis- barriers are not lowered as provided for partners would say, why would we lation as fast track. As with a number in the agreement. A recent report from agree to such a treaty knowing that of other policy issues here in Washing- the American Chamber of Commerce in then Congress is going to come back, ton, I consider these words to be non- Japan said more effort must be dedi- and in area B where we got our prin- descript. They do not convey what it is cated to enforcement of existing trade cipal benefits they will try to offer a we are being asked to vote upon. agreements. series of amendments to strip us of This legislation first establishes a We can have appropriate environ- those benefits? ment and labor incentives built into framework within which the President So the product that would finally these agreements. of the United States can conduct nego- emerge would not be one that both I have always believed that the tiations. In essence, it is analogous to sides would feel is balanced and that American dream was that workers on a a board of directors of an organization can be supported. plant production line, by dint of his or telling its executive that it can nego- So, the reason that we have this her work, could buy a home, buy a car tiate a particular contract but stipu- process is because without it we never and earn enough to send his or her kids lating what the conditions of that con- get to the question of whether we to school. The American dream, to me, tract must be and what the limits of would have a negotiated agreement be- has always been that, by dint of labor, the negotiating authority are. When cause the other parties would not sit you can have all of the opportunities in that negotiation reaches a conclusion, with us to enter into that discussion. this great country. and if that conclusion is a trade agree- So, this is fundamentally a question I didn’t run for the U.S. Senate to ment, when that agreement is returned of does the United States wish to nego- preside over the diminution of the Cali- to the Congress where the Congress has tiate trade agreements, or do we wish fornia worker or the American worker. a single ‘‘yes’’ or ‘‘no’’ vote but cannot to sit in the stands while the other na- I didn’t run for the U.S. Senate to see modify the agreement, and in the case tions of the world negotiate trade that a 60 cents an hour minimum wage of the Senate surrender some of the agreements that will have an impact standard would prevail. I ran for the prerogatives relative to extension of upon us? U.S. Senate to try to see that this debate and other procedural advan- I know that this debate is heavily af- American dream enables somebody, by tages which are normally available to fected by history. Much of that history November 5, 1997 CONGRESSIONAL RECORD — SENATE S11729 is a result of the North American Free- So, we have learned some of the les- steel and their machine tools from Eu- Trade Agreement and negative experi- sons of the recent past and are now ap- rope because at the current level of ences that people have had under the plying those lessons in terms of the pa- tariffs Europe was more economically North American Free-Trade Agree- rameters of the negotiation in this competitive, but that with a lowering ment. fast-track agreement. of Chilean tariffs against United States I come from a State that has felt Why do we need to be there in the products, the opening of a free trade re- that sting of the North American Free- first place? We had this experience in lationship between the United States Trade Agreement, particularly as it re- the recent past. Why not just step and Chile, they would shift their pur- lates to agriculture. Our congressional back, defend our position in America, chases of those products to the United delegation was very concerned about and let the rest of the world take its States to the substantial benefit of our this in the days leading up to the final place? country. vote on the North American Free- I believe, Mr. President, that we are Chile is a relatively small country, a Trade Agreement. We secured what we facing a stark choice; that is, a choice population of about 15 million. It is thought were some protective under- as to whether the United States is to about the same size as my State of standings from the administration. maintain its leadership position in the Florida. But it is a country which has And I am sad to say that through a world, to be at the table writing the had a dynamic market-driven eco- combination of inadequate enforce- rules of international trade so that nomic growth over recent years. It has ment and a failure to keep commit- those rules will take into consideration had a powerful influence on other de- ments we were very disappointed, and our circumstances, our expectations, veloping countries in South America, many sectors of our agricultural indus- and our economic interests. Or, are we and in the world. Establishing this re- try were adversely affected. Learning to retreat from the world, and allow lationship with Chile would be a strong from this lesson—not what some have others to write the rules to their ad- United States recognition of the learned, which is we should wash our vantage? progress that this country has made, hands of this process and have nothing Mr. President, we represent only 4 and an encouragement for others to more to do with attempting to nego- percent of the customers of the world. follow Chile’s example. tiate trade agreements, or to be in- Ninety-six percent of the people on this Unfortunately, Mr. President, most volved when other people are negotiat- planet are not residents of the United of the debate about fast track has in ing trade agreements—the lesson that I States of America. We cannot maintain fact focused on our own hemisphere, and others have learned is this time we our growing economy and its standard and specifically on the expansion of the are going to put these concerns into of living unless we reach out to that 96 North American Free-Trade Agree- writing in the legislation which sets percent of our fellow human beings ment. the parameters for the negotiation and who do not live in our country. We can- That is certainly an important part not depend upon promises of what will not maintain our current record level of this fast-track authority, but it may happen after the negotiation has been of economic growth and expansion and be secondary in its importance to the concluded. prosperity and full employment with- U.S. economy to a series of important So, in this fast-track legislation as out active trade. The United States has sectoral negotiations which are going passed by the Senate Finance Commit- already opened its borders to foreign to commence under the GATT agree- tee there are a number of provisions goods. We have recognized the benefit ment to which we have already agreed. that are intended to provide that en- to our people of having access to goods Under the GATT agreement begin- hanced level of confidence that agree- and services that are produced outside ning in the next few years, there will ments reached will be agreements en- the United States. We have done so be a series of negotiations on specific forced, that commitments made will be most dramatically by reducing our tar- economic sectors. I would like to focus commitments realized. iffs to an average level of 2 percent. on one of those sectors which will be Let me just quote from page 8 of the That is the average level of tariff on the topic of negotiations in 1999. And Finance Committee’s version of this products coming into the United that is agriculture. This is important legislation beginning on line 6: States. But our products going out of to us because agriculture represents Agriculture: The principal negotiating ob- the United States trying to reach that the area of trade in which the United jectives of the United States with respect to 96 percent of mankind who are not U.S. States has the greatest surplus with agriculture are in addition to those set forth residents face tariffs that exceed 10 the world. The largest area in which in various sections of the Food Security Act of 1985 to achieve on an expedited basis to percent on average. the United States has an advantage in the maximum extent feasible more open and As an example, the country which is terms of export over import is in agri- fair conditions of trade in agricultural com- specifically mentioned in this legisla- cultural products. modities by . . . tion as being authorized for the Presi- What are we going to be trying to ac- And then a series of specific points dent to negotiate membership in the complish at the 1999 agricultural sec- are mentioned. Let me refer to three of North American Free-Trade Agreement toral negotiations? Some of the objec- those specific points. is Chile. In February of last year, I vis- tives of the United States will include Specific requirements for negotiators to ited Santiago. We learned from the reducing foreign tariffs in consultation account for the unique problems of perish- United States-Chilean Chamber of with the U.S. agricultural industry on able agricultural products, including dis- Commerce that the average tariff fruits and vegetables. Today, for exam- ciplines on restrictive or trade distorting im- against United States products in Chile ple, Japan imposes a tariff on oranges port and export practices; is 11 percent. The average United which is as high as 40 percent. Other Two: Requirements to address market ac- States tariff against Chilean products countries have similarly high tariffs on cess for the United States agricultural prod- citrus products and other processed ucts, including removing unjustified sani- is the 2 percent, which is the worldwide tary and phytosanitary restrictions; average. fruits and vegetables. One of our prin- Three: Protection against unfair trade In a discussion with several busi- cipal negotiating objectives will be to practices, including State subsidies, dump- nesses, some of which are United drive down those barriers to U.S. agri- ing, and export targeting practices. States, some of which are non-United cultural products in important mar- All of those, Mr. President, and more States, as to what would be the effect kets. are listed in the fast-track legislation of the United States entering into an Another objective will be to increase that is before us. agreement which would reduce Chilean or eliminate tariff rate quotas. These In addition to that, in the report lan- tariffs against United States products, are the limits on the amount of goods guage submitted by the Senate Finance the answer was universally that it that the United States can export to a Committee, there is a requirement for would lead to a substantial increase in country before it faces high and often the President to account for foreign the Chilean purchase of United States preventive levels of tariffs. We want to unfair or trade distorting practices for products. see those quota limits as high as pos- specific sectors, particularly perishable As an example, one firm that was in sible or totally eliminated. This is an- agricultural products, citrus fruit, and the boat building and boat repair busi- other important objective of our nego- fruit juices. ness said that they bought their sheet tiations. S11730 CONGRESSIONAL RECORD — SENATE November 5, 1997 Mr. President, our distinguished governments as a result of increases in world are barriers to the export of our chairman has asked to have the floor trade. goods abroad. If the United States does returned to him, and I shall do so by (5) COST ANALYSIS.—An analysis of the not lead on trade, the harsh reality is just summarizing to say that two other costs associated with each of the items listed that others will displace our role with in paragraphs (1) through (4). important agricultural objectives are arrangements of their own that may to eliminate export subsidies and to Mr. GRAHAM. Mr. President, with very likely be harmful to the American eliminate state trading enterprises that, I again express my appreciation economy, to American workers, to which have both distorted the agricul- to our chairman for his leadership and American jobs, and certainly to Amer- tural market. If we do not pass this urge our colleagues to follow that lead- ican agriculture. legislation, the United States will not ership by supporting this important Even in this hemisphere there are be at the table in 1999. We will not have legislation. others who seek to displace the Amer- the opportunity to advance our goals. The PRESIDING OFFICER (Mr. ican leadership role. The European There are risks involved in extending COATS). The Senator from Delaware. Union currently is attempting to nego- to this President the same authority Mr. ROTH. I thank the distinguished tiate trade agreements with leading that we have granted to Presidents Senator for his words of support. South American nations by 1990, claim- over the last two decades, but I believe I now yield 10 minutes to the distin- ing that their future is with Europe the greater risk for the United States guished Senator from South Dakota. rather than with the United States. is to stand on the sidelines and let oth- Mr. DORGAN. Mr. President, might I Other bilateral, other regional arrange- ers write the rules that will determine ask unanimous consent that following ments are in the process of being nego- our economic well-being. I believe the the presentation by the Senator from tiated. All of this goes forward with United States needs to be there. We South Dakota, I be allowed to yield up the United States on the sideline un- need to be there with a sense of to 20 minutes to the Senator from Col- less we extend this authority to the strength, pride, and confidence in our orado? President because it is only by being ability to negotiate an agreement. And Mr. ROTH. That is fine. engaged in international trade that we if the President is found to have acted The PRESIDING OFFICER. Is there can expect to lead toward not only our in a foolish way that is contrary to objection? The Chair hears none, and it economic prosperity but democracy, U.S. interests, we have the responsibil- is so ordered. security, and improvement of the envi- ity and the power to reject that agree- Mr. JOHNSON. Mr. President, I ronment, dealing with drugs, dealing ment with a decisive ‘‘no’’ vote. thank the distinguished chairman of with terrorism, dealing with weapons Mr. President, I appreciate the lead- the committee and thank him for his of mass destruction. ership which our chairman has given leadership on this extraordinarily im- The United States cannot be a leader on this matter. I know what a strong portant issue for our Nation. for human rights but neglect its role supporter he has been on the issues. I rise in support of the motion to pro- on trade. I think it is important for the I ask unanimous consent to have ceed on fast-track negotiating author- Members of this body to recognize that ity, and I rise as one who as a Member printed in the RECORD the draft of an what we have before us is not a referen- amendment which I intend to offer, as- of the other body cast a vote ‘‘no’’ on dum on NAFTA. It is not a referendum suming that we move to proceed to this NAFTA and ‘‘yes’’ on GATT, and one on any previous trade agreement. It is, matter, which relates to increased en- who appreciates that the judgment on in fact, an acknowledgement that we forcement responsibility for the execu- the final merits of negotiated trade live, however, in an interglobal econ- tive branch relative to any treaties agreements is something that comes omy, that we live in that reality, and that it might negotiate. next; that what we have at hand here is that reality requires us to become in- There being no objection, the amend- a critical procedural issue about volved in engagement and in a leader- ment was ordered to be printed in the whether in fact this administration, as ship role. Cowering behind walls of fear past administrations, will have the au- RECORD, as follows: about trade does a disservice to us all, thority to go forward to at least be at AMENDMENT NO. — including workers, the environment the table on trade arrangements. and human rights. (Purpose: To require a plan for the imple- So I am very mindful that today we mentation and enforcement of trade agree- The United States represents only 4 ments implemented pursuant to the trade are talking about process and not a percent of the world’s population but 21 agreement approval procedures) final trade agreement, and that all of percent of the world’s gross domestic On page 41, between lines 16 and 17, insert us as Members of this Senate will re- product. It ought to be obvious to us the following new section and redesignate serve our judgment on the merits of all how critically important trade is to the remaining sections and cross references whatever negotiated agreement comes the United States. thereto accordingly. back to us for our ratification. In my home State of South Dakota, 1 SEC. 6. ADDITIONAL IMPLEMENTATION AND EN- The Reciprocal Trade Agreements of every 3 acres of land throughout the FORCEMENT REQUIREMENTS. Act of 1997 simply provides the same State planted to crops is in effect At the time the President submits the basic structure and authority for this planted for the export market. We sim- final text of the agreement pursuant to sec- President as has been provided for past ply cannot allow other nations to forge tion 5(a)(1)(C), the President shall also sub- Presidents of both political parties mit a plan for implementing and enforcing regional and bilateral trade arrange- the agreement. The implementation and en- back to President Ford. And if any- ments without the United States even forcement plan shall include the following: thing, this act strengthens the hand of being at the table. And that is the (1) BORDER PERSONNEL REQUIREMENTS.—A Congress. It provides for more notifica- question, that is the fundamental ques- description of additional personnel required tion, more consultation, and in fact ex- tion before this Senate: will we bring at border entry points, including a list of ad- plicitly restricts Presidential author- the United States to the table to be a ditional customs and agricultural inspectors. ity in areas not specified in the act. player, to be a leader, or will the Unit- (2) AGENCY STAFFING REQUIREMENTS.—A de- The ability to negotiate under fast ed States cower on the sidelines and scription of additional personnel required by track has in fact expired with the ap- Federal agencies responsible for monitoring allow other nations to go forward with and implementing the trade agreement, in- proval of the Uruguay round of 1994, arrangements that may or may not be cluding personnel required by the Office of and we find ourselves now with great beneficial to American workers and the the United States Trade Representative, the urgency having to deal with this proce- American economy? Department of Commerce, the Department dural issue. Fast track is not about a particular of Agricultural, and the Department of the I think we need to understand, Mr. trade agreement. It is not about poli- Treasury. President, that we go forward or back- tics, although there are, admittedly, (8) CUSTOMS INFRASTRUCTURE REQUIRE- ward on trade. There is no such thing some in the other body who would tie MENTS.—A description of the additional as the status quo. We live in a nation this agreement to collateral, unrelated equipment and facilities needed by the Unit- ed States Customs Service. that historically has had very few re- issues involving international family (4) IMPACT ON STATE AND LOCAL GOVERN- strictions on the import of products planning or even antipublic school MENTS.—A description of the impact the into our Nation. Most of the trade bar- agendas, and so on. Hopefully, this will trade agreement will have on State and local riers that need to be dealt with in this not be brought down by those kinds of November 5, 1997 CONGRESSIONAL RECORD — SENATE S11731 irrelevant side issues. We should not be ity, we have heard a number of argu- the fact that I, as just one Member of involved in ideology. What in fact we ments for and against this issue. As the the Senate, would not be allowed to have here is an issue that is about jobs, debate continues, I suppose we will offer any amendments on the final en- about economic growth, about world hear some things repeated over and acting bill, whether I liked it or dis- competitiveness. over from different colleagues. I don’t liked it. I am sure many of our col- Other nations simply will not put know a Senator, though—I think I can leagues have not yet decided how they forth their best offers at the table with honestly say I don’t know a Senator in will vote, and I certainly can count as our trade representatives if they know this body who does not want to do what well as anybody, and I think probably they will then have to renegotiate the is best for American workers, Amer- the tide might be going against us. But entire matter with coalitions of Mem- ican families, American farmers, I for one do not believe we were elected bers of Congress and unending domes- American consumers, and the Nation to be rubber stamps for the administra- tic political turmoil in our own Nation. at large. tion, and on fast track that simply re- Trade is critically important to my I think most of us, certainly me, cer- duces this body to rubberstamp status. own State of South Dakota. Its export tainly Senator DORGAN, believe that we Article I, section 8, of the Constitu- trade has increased from $700 million are protrade. We believe that inter- tion of the United States of America to $1.2 billion in the past 5 years. De- national trade is important. We know provides Congress with the authority mand continues to grow. But, in fact, that we would like to see a time when to regulate commerce with foreign na- so does competition from suppliers, and there are very few barriers, very few tions. The Constitution also gives the the need for fair trade and fair access tariffs, very few quotas—if any. I know, President the authority to negotiate continues to be great. I am pleased as many of my colleagues do, that if we with foreign countries. So let’s not be with the administration’s agricultural had no barriers whatsoever, American misled when people say the President initiatives. I am pleased with their sup- manufacturers, farmers, producers needs fast-track authority in order to port for S. 219, of which I am a cospon- could compete with anyone and in fact negotiate. He can do that at any time. sor, the Value Added Agricultural win in that competition on a level This is simply not true. Fast-track au- Products Market Access Act of 1997, playing field. It seems ironic to me thority gives the President additional which would allow for the U.S. Trade that we will go through this effort on powers which our Founding Fathers Representative on a annual basis to legislation that, if it ultimately does had reserved solely for the Congress. identify nations that deny market ac- pass both the House and Senate, will I don’t believe most of us are isola- cess for value added U.S. agricultural limit the deliberative and representa- tionists. I believe in free trade. In fact, products or that apply standards for tive processes that are now at the in this day and age I think we all un- import from the United States not re- heart of the legislative branch of Gov- derstand and agree that free trade is an lated to protecting human, animal, or ernment. important direction to go. But, quite plant life or health and not based on Essentially, fast track provides the frankly, I think many us do not sup- science. administration with the assurance that port these pell-mell rushes to judg- Our red meat exports are now at a any trade agreement it negotiates will ment. We get tired of the old argument record level of $2.4 billion. I am pleased come to Congress as a privileged piece that anyone who opposes fast track that the administration has directed of legislation. That means Congress must be a protectionist and that the the Secretary of Agriculture to im- must consider a trade agreement with- opponents of fast track are trying to prove the availability of livestock im- in 90 days of when the administration hinder free trade. port data, and the Secretary of Agri- formally submits it to this body. In ad- I have to tell you, if it got right down culture, in cooperation with the live- dition, there will be no hearings, no to who we are supposed to protect, stock industry, to work on guidelines markups. The enacting bill will go to whether it’s the CEO’s of multinational for voluntary labeling of meat and the floors of both the House and the corporations or foreign-owned corpora- meat food products. Senate where debate is limited to 20 tions or American corporations and Agricultural exports nationally have hours and no amendments are allowed. American jobs, I would have to plead grown 50 percent from 1990 to 1996, from Mr. President, 20 hours of debate is guilty that I prefer to protect our jobs $40 billion to a now record $60 billion. not very long for an important issue and our corporations and our country. And in the current environment where such as international trade, when you But these kinds of claims sound like we no longer have a farm price support consider there are 100 Senators whose something from a tabloid, designed to system in place, it is all the more im- States are heavily impacted by an ex- stir the emotions of the American pub- portant that every possible tool be tensive agreement, such as NAFTA lic. brought to bear to expand farm in- was. It seems even more ludicrous to I think, more important, when we come, farm prices, and the competi- believe that the 20 hours of debate in talk about free trade we also have to tiveness of one of America’s great eco- the other body, the House, with 435 link it to what is fair. We often hear nomic sectors. Members, would provide a fair hearing. that bandied around—fair trade. Like I am pleased that agriculture will, in That would come out to about 3 min- many of my colleagues, I am sorely dis- fact, be an explicit goal of the Presi- utes per Member, as I understand it. appointed in some of our past trade dent’s negotiating authority. Finally, after the debate is finished, agreements that this country has en- So again, Mr. President, this is not a the House and the Senate would only tered into because I don’t think they referendum on past trade agreements, be able to vote ‘‘yes’’ or ‘‘no’’ on the were, basically, fair to us. Before we but it is a referendum on whether the entire agreement. For such an agree- continue to offer this extraordinary United States will continue to be a ment, such as NAFTA, that translates power to the administration, I think leader or even a participant in inter- into a vote on a document of about Congress has a responsibility to review national trade or whether we will suc- 1,000 pages long with no public input past policies. Senator DORGAN has done cumb to fear, whether we will in fact whatsoever. a marvelous job. I think he has done it enter the 21st century in retreat rather Fast-track authority is truly a very well, pointing out the trade defi- than as the global leader in economic unique procedure. If this authority is cit, as an example. With every trade issues, which this Nation deserves and granted to the administration, Con- agreement we have made under fast which this Nation needs. gress is essentially giving the Presi- track in the past, the trade deficit has I yield back my time to the distin- dent powers that I believe are supposed actually gone up for America and not guished chairman. to be reserved for this body in our Con- down. We got the worst end of every The PRESIDING OFFICER. The Sen- stitution. First, it allows the President single agreement that was negotiated ator from Colorado. to control the agenda and determine under fast track. Mr. CAMPBELL. Mr. President, as when trade agreements are considered. For those who argue that if we fail to we debate whether to proceed to the More important, and second, it gives grant fast-track authority to the Presi- consideration of S. 1269, and on the the President the authority to actually dent, other countries will refuse to ne- larger question whether to provide the write the legislation upon which Con- gotiate with the United States and the administration with fast-track author- gress will act. Added on top of this is United States won’t even be allowed to S11732 CONGRESSIONAL RECORD — SENATE November 5, 1997 sit at the negotiating table, that is ab- would account for no more than 400,000 Mr. MURKOWSKI. Mr. President, I solutely ludicrous. This is the largest jobs lost over 15 years.’’ I quote that ask unanimous consent for 2 minutes economy in the world. There will al- directly from his letter. Perhaps those to introduce a bill as in morning busi- ways be a place at the table for any 400,000 jobs aren’t important to some ness at this time. international agreements. people—unless it’s your job or unless The PRESIDING OFFICER. Is there Let’s consider that fast track has it’s the breadwinner of your household. objection? Without objection, it is so been used only five times. Yet without Then it becomes very important. ordered. The Senator from Alaska is it, the Clinton administration, as an While I heard a whole number of fig- recognized. example, has successfully negotiated ures on the number of jobs created by Mr. MURKOWSKI. I thank the Chair. 198 agreements. I think that speaks for NAFTA used as evidence of NAFTA’s (The remarks of Mr. MURKOWSKI per- itself whether fast track is needed. We success, many of those figures seem to taining to the introduction of S. 1373 are an economic powerhouse. The discuss jobs that have been created ba- are located in today’s RECORD under world knows that. It is in the best in- sically as a result of increased U.S. ‘‘Statements on Introduced Bills and terests of other countries throughout growth that would have happened with Joint Resolutions.’’) the world to negotiate with us. That is or without NAFTA. Many of them The PRESIDING OFFICER. The Sen- evidenced by the 198 agreements that dealt with the service industry jobs, ator from North Dakota. our trade representatives are so proud too, but not hard, well-paying manu- Mr. DORGAN. Mr. President, the of that did not need fast track. So we facturing jobs. I know that we need to time, I understand, is winding down really ought to do away with these increase our exports, and I think that until 5 o’clock when we have a vote scare tactics that are kind of designed we are trying to do that. We need to this afternoon on the motion to pro- to stampede us like sheep to voting for look at that in balance, about our im- ceed. I wanted to take just a few min- something in the last waning days of ports, too. utes to comment on some of the things Congress without giving it a slow, de- The Economic Policy Institute did that we have heard in the last couple of liberative understanding of what we just that. According to the Institute’s hours. I believe Senator HOLLINGS is on are going to do and what we are going recently released study, 394,835 jobs his way to the floor. He will be taking to put in place. have been lost as a result of NAFTA. some time. We have several other Supporters say we need the agree- That was a net loss of jobs. I don’t speakers on this side. But I would like ments so we don’t get bogged down in hardly consider that a success in our to take a moment to respond to a cou- Congress and load it with amendments. negotiating deals with foreign coun- ple of the things that we have heard. I understand this is a slow process, and tries. I believe we simply cannot have a First of all, I feel this is a good de- we are often accused of taking too strong nation if we do not have a bate. It is about time we had this de- much time. We often do add many strong manufacturing base. Those jobs bate in this Chamber. Many of us have things to the amendments. But I think that left primarily were manufacturing wanted to have a discussion about most of those amendments are done in jobs. If, Heaven forbid, we should get trade and trade issues for some long good faith. But if we are sent here to into some major international conflict, while. But the opportunity to do that try to deal with good, fair trade agree- there is simply no way we are going to has been limited. Now that fast track ments, I don’t think there is a big field strong military might from Amer- has been brought to the floor of the problem. I don’t think we should have ica if we have to import all of our parts Senate is a very good and useful oppor- to worry about it that much without for our apparatus from foreign coun- tunity for that debate. fast track. The bottom line is we are tries. A speaker a couple of hours ago came here to represent this Nation and our In effect, we might ask the question: to the floor of the Senate and said the own constituents from the States from Did it help workers anywhere? In my problem that he has on this issue is the which we were elected. opinion it certainly didn’t help the American people don’t understand I know my constituents did not vote workers in Mexico under the NAFTA trade. It occurs to me that the Amer- for me to send me here to this great in- that we did pass. The maquiladora fac- ican people understand trade. They stitution to give away their voice, to tories that sprang up overnight across well understand the trade issue. It oc- not let them be involved in it. I think the border are still paying poor wages, curs to me that some of the people here most Senators feel the same way. We a dollar an hour or less in most jobs. in Washington, DC—yes, maybe even in didn’t get elected to represent Mexico Many of the workers live in sub- Congress—don’t understand trade. or Chile or Japan or some other coun- standard housing. Their children drink When the American people see a try. We got elected primarily to rep- contaminated water. There is still a trade strategy that results in 21 resent this Nation and our own States. high incidence of sickness among those straight years of trade deficits, getting I realize that this debate over grant- children. So it didn’t help workers on worse year after year, setting new ing fast-track authority to the admin- our side of the border, and it didn’t records year after year, I think the istration is not to be a critique of help workers on the other side of the American people understand that there NAFTA. But if fast track has been used border either. is a problem. That is just lost, appar- only five times, then we have no choice The problem is, we are coming close, ently, on some Members of this Cham- but to bring up NAFTA if we are going now, to our targeted adjournment date, ber, and perhaps some administrations to consider the merits of fast track. perhaps this Friday. And to meet that who are engaged in trade policies that Just about 4 years ago, Congress passed date, we may be forced to consider fast are not working. NAFTA implementing legislation, and track within a more limited amount of So I think it is not accurate to sug- that was an over-1,000-page document. time than we should to be dealing with gest that the American people don’t It was hailed as a major achievement this issue. understand trade. Oh, they understand that would create jobs and not cost But I think Senators will do the it all right. They understand it when jobs in America. I concede that NAFTA right thing. They will do what they they see factories close and move to has benefited several segments of our can. Those of us who disagree with it, Mexico or move to Indonesia or move society. There is no question about as he does, certainly commend Senator to Sri Lanka. They understand it when that. But I think, looking at it in toto, DORGAN for the leadership role he has they see their jobs leaving. They un- it has cost more than it has gained. taken. I believe it is time America derstand it when they can’t compete Jobs is the perfect example. In Octo- stopped being referred to around the with products that are produced at 12- ber, 1993, I sent a letter with several world as ‘‘Uncle Sucker’’ and return to cents-an-hour labor or without the re- other Senators to the U.S. Trade Rep- that status that we had at one time quirement to clean up their emissions resentative, Mickey Kantor, in which I being Uncle Sam, a nation of proud or without the requirement to have a asked about the potential loss of jobs workers, manufacturing good-quality safe workplace. The American people and what the administration planned material for the rest of the world. understand that. And, that is precisely to do about displaced workers. I yield the remainder of my time. what drives a lot of this discussion. In his response to me in November, Several Senators addressed the We are told there are 50 chief execu- 1993, Mr. Kantor replied that ‘‘NAFTA Chair. tive officers of major corporations on November 5, 1997 CONGRESSIONAL RECORD — SENATE S11733 Capitol Hill today lobbying and dis- sessing arguments totally without country and trade deficits detract from cussing with Members of Congress why merit: ‘‘We are for free trade; you’re a our economic opportunity are those fast track is important. The point I North Korea kind of person, you want who are supporting change, positive would like to make is that there is not to put up a wall and go hide under a change that would help this country necessarily a parallel interest between rock.’’ and assist this country in improving our country’s interest and the interests The fact is, no one that I have heard its economic future? of the American people and these 50 speak is talking about putting up walls I don’t expect that those in this town CEO’s who have an interest in maxi- around our country. I voted against who have only one note to sound on mizing profits for their stockholders. fast track previously. I believe in ex- trade will ever concede the point. It It is likely, in fact, it is certain, that panded trade. I don’t believe in putting seems to me that they think the proof in a number of board rooms and execu- up walls. I believe our economic health is in the economy. We have a decent tive offices in this country that the is tied to our ability to expand eco- economy in this country. I don’t deny chief executive officers must evaluate nomic opportunity through trade. I that. Unemployment is down some. In- where can they produce more cheaply. just happen to believe our current flation is way down. Deficits are down, Each of these CEO’s is asking, ‘‘Where trade strategy doesn’t do that nearly way down. There is no question that can I move my manufacturing jobs? as effectively as we could if we as a the American economy has improved. Where can I and how can I shut my fac- country had a little bit of nerve and But, I would make this point. You tory here and move the jobs overseas in some will to say to our trading part- can live in a neighborhood and see a order to access cheaper labor, in order ners, ‘‘You have a responsibility to us, neighbor who looks wonderfully pros- to escape the requirements of air pollu- and that responsibility is to open your perous, not understanding that all of tion and water pollution laws, or in market to American producers.’’ those cars in the driveway, the house, order to escape OSHA and the require- The Washington Post editorial is not the clothes, the jewelry are all on a ments of a safe workplace? Where can I a surprise, obviously. The Washington credit card or some mortgage instru- do that, without giving much thought Post has been blowing a trumpet for ment somewhere and that person, as to whether it benefits the American this trade strategy all the way up the while looking very prosperous, is not far from real trouble. economy, but in order to maximize my trade deficit chart, year after year, as The point I have made repeatedly is corporate profits?’’ bigger deficits grew. Year after year, That would be the interest, it seems these ballooning trade deficits, the the Post has given merits to this failed largest in our country’s history, are to me, of most CEO’s: the return to the trade strategy. The Washington Post shareholder and the maximization of troublesome. You don’t hear one word says the following about the position of on the Senate floor about them. corporate profits. That is not nec- those of us who have opposed fast I heard a presentation today I essarily parallel with the interests of track: thought was a good presentation in our country. It might well be that the To a large extent, this is simply putting favor of fast track. I thought it was parochial interests of a corporation to new clothes on old-fashioned protectionism, well-constructed, well-delivered and move its production facilities to Indo- but fast-track opponents also make an argu- persuasive. But, there was not one nesia or to move its production facili- ment geared to the changing conditions of a globalizing economy in which companies are word about the trade deficit, not one ties to Thailand or Sri Lanka is in the word about the imbalance in our trade company’s best interest, but certainly freer than ever to locate across borders, and so workers find themselves more than ever relations with our trading partners, not in our country’s best interest. with China, with Japan, with Mexico, So we will, I assume, hear from competing across borders. with Canada. Not one word. Why? Be- CEO’s today with many of them on I always find it interesting that there cause they only talk about one side of Capitol Hill helping President Clinton is no journalist I am aware of—cer- tainly no politician—but no journalist the issue. push for fast-track trade authority. Can you imagine a business that The point I make is that their inter- who ever lost their job because of a bad trade agreement. But they sure do give says, ‘‘I want you to evaluate me, and est is not necessarily parallel to the in- here is how I want you to evaluate me. terests of this country. I am not saying us a great deal of advice on trade, and for that we are very thankful. I want you to evaluate me based on my they are un-American. I am just saying revenues, and I will not tell you about they have an interest in disconnecting There is one song, one note that comes from the Washington Post. It is my expenditures because that is irrele- from American manufacturing where vant. Just look at my revenues. Aren’t that you are either for the current they can maximize profits by moving I healthy? Aren’t I doing well?’’ trade strategy and, therefore, fast their manufacturing elsewhere, and You could probably conclude that if that is not necessarily in this country’s track, or you are a protectionist. The you only look at the revenue side. But interest. Washington Post, in my judgment, in what if you look at the expenditure A statement earlier this morning its editorial, errs by suggesting that side and see they far exceed revenues? brought a smile to me. It was a state- those who don’t support the current Would you then not conclude that the ment by one of the speakers who said, trade strategy are protectionists. business is running toward trouble? I ‘‘What we have here are two sides: One Is it being a protectionist to decide would think so. That is exactly what believes in free trade.’’ It is like ‘‘We that a trade strategy that results in happens on this issue of international are on that side,’’ they say, ‘‘and we be- the largest trade deficits in history trade on the floor of the Senate. They lieve in free trade, motherhood and year after year isn’t working? Is it pro- talk about exports and ignore imports. tourism. So we are good guys.’’ tectionist to be concerned about a I heard a description of how many ad- You can’t wear hats in the Senate or trade strategy that results in an in- ditional automobiles we send to Mex- whomever said that would certainly creasing, a mushrooming trade deficit ico. What a wonderful opportunity, we have put on a huge white hat. It un- with China, ratcheting up now we ex- are told, to send automobiles to Mexico doubtedly would be a very large white pect it close to $50 billion, or a trade under the United States-Mexican free- hat. Then he would have thrown dark strategy that results in mushrooming trade agreement. They say, ‘‘Did you hats somewhere to the other side of the trade deficits with Japan this year, ex- know that we have gotten more cars Senate, because this speaker said that pected to reach $60 billion this year? into Mexico?’’ Yet the number of cars you believe in free trade and expanded Incidentally, that means that every coming from Mexico into this country American economic opportunity, or year as far as the eye can see, back- dwarfed that export number by so you believe in going to a kind of North ward and forward, we can talk about a much you can hardly describe it. We Korea, building a wall around your trade imbalance with Japan of $45 bil- now import more cars from Mexico country and then going to hide under a lion, $55 billion or $65 billion a year. Is into the United States of America than rock. That was the example. it really the case that those of us who this country exports to all the rest of That is, obviously, the first argu- believe that this does not serve our the world. ment one hears in a debate about trade country’s interest are protectionists? Let me say that again because it is by someone who wants to describe the Or could it be possible that those of us important. We now, after NAFTA, im- opponents as being unworthy and pos- who believe that trade deficits hurt our port more automobiles manufactured S11734 CONGRESSIONAL RECORD — SENATE November 5, 1997 in Mexico than we export to the entire anywhere. They stayed here. And they Mr. SARBANES. Will the Senator rest of the world. How can anyone brag produce here. It is not fair for them to yield? about NAFTA producing an accelerated have to compete in circumstances Mr. DORGAN. I will be happy to. opportunity for us to send cars to Mex- where they cannot get their product Mr. SARBANES. The Senator from ico when, in fact, that quantity is to- into a foreign country because that North Dakota is making an extremely tally dwarfed by the number of new market is closed to us, but the foreign important point. The assumption is automobiles now manufactured in Mex- country can get its product into our trade, by definition, is good; but the ico that used to be manufactured in market to compete with that business focus is all on exports and not on the this country, and are shipped from that stayed here. By the way, that pro- balance of trade. there to here? ducer in the foreign country can This is what has happened to our Despite the attempts of some to por- produce that garage door opener, that trade balance since 1975. You can see tray it as such, the question is not bicycle, or those shoes, paying 12 cents this incredible deterioration that has whether we are involved in inter- an hour, and put them on the store taken place. We are running negative national trade. It is how we are in- shelves of America and drive the Amer- trade deficits year in and year out. And volved in international trade. Will this ican businesses out of business. the consequence of doing this, I say to country continue to countenance a sys- One of the Senators earlier said, my distinguished colleague, is this is tem in which we accept less than fair ‘‘Well, if that is the way it is, that is what has happened to the American treatment from our trading partners? tough luck. Let them hang on the walls net foreign investment position. Another person on the Senate floor of Wal-Mart. That is what America is The United States, in 1980, was a within the last hour said the following: all about. Let them hang the cheaper creditor nation to the tune of about ‘‘If we are not involved through fast product there, and it’s good for the $400 billion. In other words, we had track in trade negotiations, there will consumer to be able to access a cheaper claims on others. We were a creditor be trade agreements going on around product.’’ nation. And now that has deteriorated the world and we won’t be a part of I ask, how is that consumer going to so that the United States now, when we them.’’ pay for that cheaper product without add in what the trade imbalance will be I would like one person in the U.S. good jobs? And where are the good jobs this year, will be about a $1 trillion Senate to describe to me a substitute in this country going to be unless this debtor nation. We have gone from for the American economy, the Amer- country demands on behalf of its busi- being the world’s largest creditor na- ican marketplace. Is there another ness and its employees, its workers, tion to being the world’s largest debtor place on Earth? Spin the globe, look at that when we trade, our agreement to nation. And then everyone comes along all of them. Look at every country, trade with other countries and our de- and says, ‘‘Well, no one wants to focus sire to trade with other countries be every city. Is there another place on on this issue. No one wants to pay any constructed on a set of rules that are the globe that has the power and the attention to it.’’ fair. We need a set of rules that says, potential of this marketplace? The an- I mean, the Senator from North Da- no, not that you are to mirror exactly swer clearly is no. kota has been absolutely right. He Do you really believe that if we de- what we do in all of these areas, but a said, ‘‘Look, there are two sides to this set of rules that would say to those feat fast track that those countries thing. There are your exports and there countries, ‘‘There’s an obligation that that desire to access the American are your imports.’’ Yes, we are getting you have in your trade relationship marketplace are going to say, ‘‘Well, additional exports, but we are getting with our country. And that obligation all right, if we can’t access the Amer- far more imports. is to have fairness and access to mar- ican marketplace, we choose Kenya.’’ As we get these imports, and we get ketplaces. If our market is open to you, ‘‘OK, if we can’t access the American this deterioration in our trade bal- your market must be open to us.’’ marketplace, now we’re going to set If we don’t have the nerve and the ance—look at that. Since World War II, our sights on Nairobi.’’ will to do that, what on Earth will our we have been running a positive trade ‘‘We are going to set up an office in future be? balance, modest but positive, year in Kinshasa; that is our future.’’ If I read these articles—one printed and year out. And this is the deteriora- Does anybody really believe that? recently by one of the major news- tion that has taken place in it over the There is no substitute for the Amer- papers by a fellow who is describing the last 20 years. ican marketplace. Why is it that we trade deficit. He said, ‘‘Trade deficit. And, of course, each year we run are the country that must be dangled What does that matter? I have talked these large trade deficits —$100 billion, on the end of a string? Why is it that to economists. It doesn’t matter. Let $150 billion, $120 billion trade deficits those of us who stand up and say it is me explain what a trade deficit is.’’ He year after year after year. It is offset time for us to demand and require fair said, ‘‘That’s like somebody saying to somewhat by the service, but not trade with respect to China, fair trade you, ‘I will trade you $10,000 worth of enough. I mean, the net is reflected in with respect to Japan, and, yes, with pears for your $5,000 worth of apples.’ ’’ this chart, which is not quite as bad as Mexico and Canada and others—why is That uninteresting and irrelevant ex- the previous level but still shows us it that we are subject to being called ample in this article, describing why year after year showing these deficits. protectionists? Is it because the inter- the trade deficit is just fine, I guess, The consequence of that—these ests of the international economic em- represents a view in this town that as amount to about $1.5 trillion over that pires now are to construct a trade re- long as you are trading more, it does period of time. We have been running a gime in which you have no economic not matter. Its a view that as long as trade balance deficit since 1975 of $1.5 nationalism? Is it because if you exert you are exporting more, it doesn’t mat- trillion. And the consequence of doing some sort of economic nationalism, ter if your imports increase fiftyfold, that is that our net asset position is you are a protectionist? and that somehow we are better off as absolutely deteriorating. They construct a trade regime in result. Look at this chart. This is what has which they proscribe for our country a At the end of the day, you are better happened. This is the U.S. net foreign circumstance where they want to off when this country has retained a investment position. In 1980, before we produce elsewhere and sell here. Why? strong manufacturing base and has re- got this tremendous decline, we were a Profits. Is that wrong? No, it is not quired, through the exertion of some creditor nation, the world’s largest wrong from their standpoint, but is it nerve and some will to say to its trad- creditor nation; in other words, others always in our country’s interest to say ing partners, ‘‘You have a responsibil- owed us. And now we are the world’s what is in the corporate interest is in ity to the United States of America. largest debtor nation. And by the end the American interest? Not nec- And that responsibility is to treat us of this year, it will be to the tune of $1 essarily. fairly in international trade. And this trillion—$1 trillion. There are circumstances where we country will not sit around and will no Now, you cannot go on doing this in- should say that it is not fair competi- longer take any closed markets to our definitely. You can do it for a period of tion for those businesses that stayed products when our markets are open to time, but you cannot do it indefinitely. here in America. They didn’t move your products.’’ In any event, the whole time you are November 5, 1997 CONGRESSIONAL RECORD — SENATE S11735 doing it, we are taking on an increase Mr. SARBANES. That is right. guished Senator has so clearly brought in volume of foreign indebtedness Mr. DORGAN. This is a country that to the attention of all the colleagues through these large and persistent has a huge surplus with us. Instead of here, that we actually should be grow- trade deficits—the losses sustained buying what they need that we produce ing much faster, and saving, excepting every year by buying more goods from here in this country with American these cancerous deficits in the balance others than they are buying from us. jobs, they have been saying, ‘‘Well, of trade. And we are undercutting the Nation’s we’d like you to consider manufactur- I really appreciate the Senator from capacity for mass consumption by de- ing that in China.’’ Maryland, and I apologize for inter- clining wages and loss of high-income That is not the way trade works. rupting, but I hope he will continue. employment. As the Senator from Mr. SARBANES. ‘‘Consider’’ is not Mr. SARBANES. The Senator is ab- North Dakota said, they said, ‘‘Well, the right word. They do not say, ‘‘We solutely on point. your consumers can buy cheaper prod- would like you to consider.’’ The Wash- Just let me read you two quotes from ucts.’’ But then the question is, ‘‘Well, ington Post ran an article just the two very able authors. One is Benjamin suppose they’re not working? Suppose other week, and here is the heading of Friedman, who is a professor of eco- they’ve been thrown out of a job by the article: ‘‘China Plays Rough. Invest nomics at Harvard, and his book called these importations?’’ They can’t buy and Transfer Technology or No Market ‘‘Day of Reckoning.’’ anything. They can’t buy anything. Access.’’ And that article then de- I again want to go back and empha- Mr. DORGAN. If the Senator from scribed how China forces U.S. compa- size the fact that we have gone from Maryland would just yield. I guess I nies to transfer jobs and technology as being the world’s largest creditor na- have the floor. I am yielding to the a price for getting export sales. So, in tion to now being the world’s largest Senator from Maryland. effect, what they say is, ‘‘We won’t debtor nation. This is the deterioration Let me understand what you are say- take any of your exports if you don’t that has taken place in the U.S. net ing. I held up the Washington Post and give us the investment and the tech- foreign investment position. This is what Professor Friedman says I cited the discussion on the floor of nology so we can then produce them about that: the Senate. The Senator from Mary- ourselves.’’ land now comes to us and says, ‘‘You World power and influence have histori- So what are our people doing? In cally accrued to creditor countries. It is not know, we’ve got these huge deficits,’’ order to get these short-run exports, coincidental that America emerged as a and all these other folks say, ‘‘Gee, they give away the capacity to main- world power simultaneously with our transi- we’re moving in the right direction. tain a long-run position. And the Chi- tion from a debtor nation, dependent on for- What we need to do is more of what nese, in effect, extract that capacity eign capital for our initial industrialization, we’ve been doing.’’ Did the Senator out of them. So, yes, they make a to a creditor nation supplying investment graduate in the bottom of his high short-run purchase, but at the same capital to the rest of the world. But we are school class? Is he a protectionist? Is time they are getting the investment now a debtor again, and our future role in world affairs is in question. People simply do that all this means? Or does the Sen- and technology so they do not have to not regard their workers, their tenants and ator from Maryland understand what make long-run—not only will they not their debtors in the same light as their em- the rest of these folks don’t, that defi- make long-run purchases, but, mark ployers, their landlords and their creditors. cits in the long term have to be repaid? my word, they will be exporting these Over time, the respect and even deference Mr. SARBANES. That is right. We products themselves elsewhere in the that America has earned as world banker are not driving the right trade bar- world. will gradually shift to the new creditor coun- gains. Something is wrong with a trade Not only will they, in effect, close tries that are able to supply resources where policy that gives you this deterioration we cannot, and America’s influence over na- our people out from getting into the tions and events will ebb. in your net foreign investment posi- Chinese market; they will become their That is the big issue that is behind tion. Something is wrong with a trade competitors in other markets on the all of this. That is the issue we really policy that takes the United States, in basis of the investment and the tech- ought to be debating. The whole direc- less than 20 years, from being the larg- nology that our people transferred to tion in which—everyone comes out est creditor nation in the world, in China in order to get these short-term here and says—you know, I listened to other words, people owe us, and in 20 sales. the President yesterday. He said, years makes the United States the That is exactly what is going to hap- ‘‘We’ve got trade.’’ I will not quarrel largest debtor nation in the world. pen. And the consequence of that is our with that. ‘‘I’m trying to negotiate Something is wrong. trade position will continue to deterio- good trade agreements with other The Senator is absolutely right to rate, and we will go on to become an countries.’’ But look what is happening focus on it. Everyone says, ‘‘Well, we even bigger debtor nation. to us. We have had this incredible dete- succeeded in selling $3 billion worth of Mr. HOLLINGS. Will the Senator rioration in our trade balance and this airplanes to China on this visit that yield? represents $1.5 trillion dollars of defi- they had.’’ Our trade imbalance with Mr. SARBANES. Certainly. cits over the last 20 years. This is what China is over $40 billion and increasing Mr. HOLLINGS. I really appreciate has happened to our net foreign invest- all the time. It is increasing all the the distinguished Senator bringing the ment position. time. It may soon surpass the trade issue into sharp, sharp focus. It so hap- This is a devastating chart when you deficit with Japan. The consequence is pens that I had been looking at the In- think about what it has done to the that we are selling to them far less— vestor’s Business Daily. Just reading a United States. William Wolman, chief far, far, far less—than they are selling sentence: economist at Business Week, had this to us. The surge in imports prompted economists to say, and it ties right in with the Mr. DORGAN. On the question of Chi- to revise down their first-quarter growth sta- Senator’s comments about economic tistics. nese airplanes—which is an interesting growth, ‘‘The Implication of Debtor departure point—the Chinese are going And, again, just here in Business State for U.S. Economic Growth.’’ to need 2,000 airplanes. They bought a Week, dated November 3, on page 32: The transformation of the United States few from us, but the fact is they have Because of the widening in the August from a major international creditor to an been buying from Europe as well, even trade deficit for goods and services to $10.4 international debtor has major implications as their trade surplus with us mush- billion, from $10 billion in July, trade is like- for future United States economic growth. It rooms way, way up. ly to have subtracted a full percentage point is no accident that back in the 1950’s and What they have been saying to this from overall demand growth. 1960s when the United States was a creditor country—I know some of the corporate The distinguished Senator has nation interest rates were lower here than folks won’t like me to say this because chaired the Joint Economic Committee they were abroad and the dollar was a strong they are all nervous about this—but for years and understands this. That is currency. But since the United States has become a debtor nation U.S. interest rates the Chinese say, ‘‘Yes, we’d like to con- why we are losing our own growth. We are higher than those in the other industrial sider buying some of your airplanes, are trying to invest, trying to bring countries, and the dollar, despite its revival but you must manufacture them in about economic growth, but not look- in 1996, has become a weak currency. The ef- China.’’ ing at the import side, as the distin- fect is, of course, to squeeze the average S11736 CONGRESSIONAL RECORD — SENATE November 5, 1997 American standard of living both because and it stated ‘‘from 1979 to 1994, twice trade you have to talk about trade bal- Americans are forced to pay high real inter- as many high-paying jobs in the United ance. Now, we ran a trade balance from est rates for what they borrow and because a States economy were lost to imports as the end of World War II until 1975. We weak dollar means that America must were gained from exports.’’ were exporting a little more than we produce and export more goods to earn for- Now, using the arithmetic of $1 bil- eign currencies than it had to when the dol- were importing. The imports that were lar was a stronger currency. Debtor status lion equals 20,000 jobs, that would be coming in were causing dislocation in has the same effect on a country as on citi- some 38 million jobs that were lost our economy, no question about it. But zens of that country. What is in effect the over that time period, or using the at the same time we were gaining a disposable income of the United States is lower figure of 14,000, it would be some plus from the exports. In fact, there under downward pressure, just as surely as 27 million lost jobs. were a little more exports than there the disposable income of its highly indebted Yes, we can talk that the economy is were imports. citizens. up and going but you get right to the What has happened, as the Senator You can’t get people to focus on this. point of understanding why we have 2.8 from South Carolina points out, we are Trade has two sides to it: What you ex- percent unemployment in Greenville now importing far, far, far more than port and what you import. If you im- County but 14 percent unemployment we are exporting. In fact, as he points port more than you export, you will be in Williamsburg County, and the people out with respect to trade goods it has running trade deficits. If you are run- back home understand this trade prob- been an almost $2 trillion deficit since ning trade deficits, that means people lem better than many on the floor of 1975. Everyone comes along and says, abroad are accumulating claims the national Congress. They continue ‘‘Look, we have a little more exports.’’ against us that we have to pay off over to see 6,375 jobs leave. Levi Strauss Look at how many more imports we time. So we have now gone from being fired one-third of their employees, 11 have. All of those imports are costing a creditor country to being the world’s plants in 5 States making jeans. Where people jobs. So the displacement of largest debtor country. We continue to have they gone? They are going off- jobs taking place by the increase in im- be a world power but how long can you shore. They have been transferring ports far, far, far exceeds the addi- sustain that position? It is not as them offshore, and after they let them tional jobs gained from the expansion though we have stopped the hemor- go, they have to announce, as they do of exports. rhaging. under the plants closing notice—they That is what people have to under- If we run a $125 billion trade deficit, never announce it during the middle of stand and they are not understanding our net position will deteriorate an- the debate on the House side, but the it. To the extent we run these trade other $125 billion. This line will con- lawyers had to comply with the plant deficits then we end up losing our posi- tinue to go down as long as we are run- closing notice. That is what is happen- tion as a creditor nation. ning a negative trade debt. Suppose we ing. We are getting Honda, I am get- This is a devastating chart, showing cut it in half, suppose we reduce it ting BMW in South Carolina, I have the United States in a creditor position from $120 billion to $60 billion, which Hoffmann-La Roche. I appreciate it and in 1980, and look what has happened to would be a terrific accomplishment. I am working hard, but I am looking at us. We have come down just like this, Say you do that in a year’s time, you the basic jobs here paying $7 an hour. and by the end of the year we will be at reduce it from $120 billion to $60 bil- As I was pointing out with the Oneida $1 trillion deficit debtor status. Debtor lion, the net position deteriorates an- plant they are closing in Andrews, and status, $1 trillion, the United States. In other $60 billion, another $60 billion. they have some 487 workers, the aver- 1980, less than 20 years ago, we were in The next year you cut it to $30 billion, age age is 47 years old. Washington a creditor status to the tune of $400 bil- it deteriorates another $30 billion. We tells them, ‘‘Retrain, retrain, retrain.’’ lion. So there has been an almost $1.5 are getting ourselves deeper and deeper Well, tomorrow morning, say we have trillion deterioration in our inter- into the hole. We can’t get anyone to 487 skilled computer operators. Are you national position in less than 20 years. focus on this. going to hire the 47-year-old skilled It is the very thing the Senator from The distinguished Senator from computer operator or the 21-year-old? South Carolina is talking about. North Dakota I think has brought our You are not taking on the health costs Mr. HOLLINGS. And that is not lead- attention back to an exceedingly im- and the retirement costs for the 47- ing. That is not leadership. You and I portant point, and I thank him very year-old, so this little rural town is as Senators are concerned with the much for yielding to me to make these high and dry. economic strength of the United points. They understand at home that we are States, with the work force and other- losing out. We are making great gains, Mr. DORGAN. I appreciate very wise. We want to get back where we are but all this downsizing and everything much the comments of the Senator leading. from Maryland. As always, he is on else like that has stagnated wages in The people should understand global point. I chided him a bit about his posi- our economy. In that sense, we are competition, ‘‘You ignorant Senators, going out of business. We have been tion in his high school class, but I sus- you protectionists.’’ They better un- giving away the store. We have Sen- pect he was right at the top. derstand when China orders $3 billion ators running around here, ‘‘If we are I yield 15 minutes to the Senator they order one-half for themselves and going to continue to lead’’—we are not from South Carolina. from countries like Japan that make leading, my dear Senator. We are not Mr. HOLLINGS. I thank our distin- the electronics. That Boeing 777, they leading in this thing. guished colleague for continuing along make the tail section—they don’t give I wish they would have adopted ADAM with the very thought that the Senator you the order unless you put the manu- SMITH and free markets but they have from Maryland provokes here which is adopted Friedrich List, that the facturing facility in country. I know, I so important to this particular debate, strength of a nation is measured not by had a GE turbine plant when I was the fact that we should realize the what it can consume but by what it can Governor. Brazil told them they would arithmetic of import jobs as well as ex- produce. We have to have the economic not order those turbines unless, they port jobs. The cumulative sum total, strength if we are to be a world leader. put the plants down in Brazil. So the that 1975, 22 years, is right at $1.90 tril- That is what we are losing. That is GE plant at Gadsden, SC, has closed lion. what is at stake. That is what is in the down and gone to Brazil. We are speak- Now, they like to use 20,000 jobs cre- conversation here. ing from actual experience. ated for every $1 billion in exports. The These colleagues that come and say It is not any fanciful conjuncture Department of Commerce changed that the President can’t get at the table— here about leading and not being at the to 14,000 some 2 years ago and that has come on. He has been at the table in table. Yesterday, Senator, right in the been their figure. Using the same fig- 200 agreements. Committee of Commerce, we passed the ure—because I want to refer specifi- Mr. SARBANES. Will the Senator shipbuilding agreement, the OECD cally here to the special study the yield? shipbuilding agreement that has been Presidential Commission on the United Mr. HOLLINGS. I yield. negotiated with some 13 countries in States Pacific Trade and Investment Mr. SARBANES. The Senator is ab- Europe and in the Pacific, and we did Policy recently released its final report solutely right. When you talk about that without fast track. We had an November 5, 1997 CONGRESSIONAL RECORD — SENATE S11737 international telecommunications Detroit and are putting it into down- you want to play that game and you treaty earlier this year, with 123 coun- town Shanghai so all our brain power won’t pay your fines, then you can’t tries, without fast track. and our wonderful technology is being dock your ship in this country.’’ One What we are trying to do is get them exported like gangbusters, and they little commission—an unelected com- to have a chance to stop, look, listen, talk about us leading and the President mission—was the only body I know of debate the things like we did with the can’t get at the table. that finally had the will and nerve to most important arms treaty, SALT I, Come on, they have to get with the say that is not the way we do business and the intermediate missile treaty. program here and understand that as here. Fair is fair. In trade, we demand All of those were without fast track Senators and Congressmen we have a and require fair trade and fair access. but they act as if our poor President is responsibility with respect to this So, the comments that both the Sen- not allowed to come to the table. He is economy, and the work force that is ator from Maryland and the Senator at the table. We want him at the table. the highest, most productive in the en- from South Carolina have made are But we just want to have a chance to tire world. You can go over to the Bu- right on point. The thing that baffles look and see before we vote. reau of Labor Statistics, economic sec- me is that those of us who desire to Mr. SARBANES. Will the Senator tion of the United Nations, and No. 1 force open foreign markets, to rein- yield? for the last 20 years has been the Unit- force open markets, and do more than Mr. HOLLINGS. I yield. ed States, not Japan. Japan is down just chant about free trade, but really Mr. SARBANES. The American mar- there at No. 6 or 7 now. So our workers seek to force open foreign markets and ket is still the most lucrative market have been the most productive. Who unlock the opportunities in this coun- in the world. They want access into the hasn’t produced, Senator, is you and I try for our producers and our workers, American market. up here. That is what I am trying to we are the ones that are called protec- I cannot accept for a moment in get over to our fellow Senators so they tionists. What on Earth are they talk- these bilateral dealings, countries will understand the problem we are ing about? won’t negotiate a trade agreement confronting. Mr. HOLLINGS. Will the Senator with the President which could then be Mr. DORGAN. I wonder if the Sen- yield? submitted to the Congress for the Con- ator will yield for a moment. Mr. DORGAN. I am happy to yield. gress to consider, to amend if it Mr. HOLLINGS. Yes. Mr. HOLLINGS. I will never forget deemed it advisable, and to vote on. We Mr. DORGAN. There is this blame the second inauguration of Ronald Wil- have done that consistently, as the America strategy that has been around son Reagan. It was in the rotunda, and Senator pointed out, including the for years that, if you can’t compete, you and I were there, Senator. Presi- telecommunications agreement, a very whatever the situations are, tough dent Reagan said, ‘‘I solemnly swear complicated measure. We do it in arms luck. That means in a free-trade cir- that I will faithfully execute the office control agreements. They are open to cumstance, jobs might go elsewhere, of the President of the United States amendment and are a far more serious but consumers benefit by cheaper im- and will, to the best of my ability, pre- matter than a trade agreement. ports. serve, protect, and defend the Constitu- I want to say one other thing to the The interesting thing about this is, tion of the United States.’’ Senator because he talked about the most of our large trading partners—es- We have the armies who protect us Chinese getting the investment and the pecially, for example, Japan and from enemies from without, and the plants in their own country, and he China—are engaged in managed trade, FBI protects us from enemies within. uses the example that occurred in not free trade. We, on the other hand, We have Social Security to protect us Brazil. The Chinese don’t make any have always been a leader in what is from the ravages of old age. We have bones about it. They don’t like to con- called free trade. Medicare to protect us from ill health. ceal it. The Washington Post had an I described yesterday watching two We have clean air and clean water to article last week, and here is the head- people dance at a wedding dance when protect our environment. We have safe ing to the article, ‘‘China Plays Rough: I was a kid. He was dancing a waltz and working places and safe machinery. Invest and Transfer Technology or No she was dancing a two-step. It didn’t Our fundamental duties here are to Market Access.’’ Invest and transfer work out well. They were dancing dif- protect. Be invited, if you please, to technology or no market access. ferent dances. In international trade, the Council of Foreign Relations, run The article went on to describe how what is happening to us is, we are con- for President of the trilateral commis- China forces United States companies fronting Japan, for example, with sion. They asked, ‘‘Are you a protec- to transfer jobs and technology as a whom we have an abiding yearly mas- tionist, Senator?’’ I had to say, ‘‘Yes, price for getting exports sales. They sive trade deficit of $40 to $60 billion the truth of it is, I believe that is my say, ‘‘We will take the exports but you every year, as far as you can see back fundamental responsibility here.’’ They have to give us the investment and the and as far as you can see forward. We say, ‘‘If you are a protectionist, you technology,’’ and that means in the fu- have that kind of trade deficit. Why? are not enlightened, you can’t see the ture they won’t take other exports be- Because Japan has a managed trade world and understand competition.’’ cause they won’t need them. They will strategy, and that is the method by When you are losing your shirt, as the have the investment and the tech- which they trade with us. Senator from Maryland said—through nology to produce the goods them- We, apparently, are perfectly content 22 years of negative trade balances—all selves, and I predict not only will they to say, ‘‘Well, if that is the way it is, they want to talk about is the exports do it for themselves they will then be there is nothing we can do about that.’’ and not the negative side of the equa- producing and selling them inter- But there is something we can do about tion. nationally, and they will go from being that. We can provide a little real lead- I cited on yesterday our experience an importer of American high-tech- ership, with a little nerve and will, and with President Kennedy and the ex- nology products to being an exporter say to Japan that part of the price for treme action that he took when 10 per- themselves of high-technology prod- this trade agreement and for their abil- cent of domestic consumption of tex- ucts from the investment technology ity to access the American market- tiles, clothing, was represented in im- that we are compelled to give to them. place, a marketplace that has no sub- ports, and he thought it was a crisis, Mr. HOLLINGS. You go right to the stitute anywhere on this Earth, is to and he put in his seven-point practice. point. open their markets completely to Now two-thirds of the clothing within In Shanghai, General Motors agreed American goods and not to do it tomor- the sight of my debate here this after- not only to build a plant there in order row, or next month, or next year, or noon is imported, 83 percent of the to produce and sell cars in the People’s even the next biennium—do it now. shoes, 53 percent of the ferroalloys, 59 Republic of China, but more particu- But this country doesn’t have the percent of the cooking and kitchen- larly, to design the most modern com- nerve or the will to do that. In fact, it ware, 64 percent of the mineral process- puter equipment that is going to was left to some little maritime com- ing machinery, 61.4 percent of the ma- Shanghai, as we speak, to design the mission, finally, to raise this issue on a chine tools for metal forming, and 44.1 automobiles. They have taken it out of $5 million fine and say, ‘‘That is fine. If percent of nonmetal working machine S11738 CONGRESSIONAL RECORD — SENATE November 5, 1997 tools—you can go right on down the sively on export statistics, failing to Mexico. They poured money into build- list. There is the majority of automatic consider the impact of imports or even ing new factories in Mexico taking ad- data processing machines, diodes, elec- the nature of the exports themselves. vantage of Mexico’s cheap labor force trical capacitors and resistors. That is Rather than facing this new era of and duty-free access to the United at 70 percent right now. I remember fierce economic competition with the States market. having the capacitor plant of GE, and I hard edge realism that places the na- As for the political situation in Mex- have lost it now. It has gone overseas. tional interest in our own hands, we ico, since NAFTA was passed Mexico You have 100 percent of tape recorders, will be relying on multilateral institu- has suffered a peasant rebellion, a wave tape players, VCR’s, and CD players. tions like the WTO to protect our na- of assassinations and kidnappings, and You can go right on down. I remember tional interest. Now we will be asked an explosion in drug trafficking and that we could not engage in Desert to embark upon a course which is money laundering. Carlos Salinas, the Storm, the gulf war, unless we got the bound to produce asymmetrical market American Enterprise Institute’s Man of displays from Japan. That is why I had openings and in which the people, the Year, is living in exile while the to put the ‘‘buy America first’’ provi- through their elected representatives, popular leftist opposition leader sion for ball bearings in the defense will be shut out. Cuauhtemoc Cardenas is elected mayor bill. We are fighting a rear guard ac- The sad truth, however, is that it is of Mexico City and an anti-NAFTA op- tion so that we would be able to defend impossible to have an honest debate position coalition took control of the country, much less be economically about trade policy, the trade deficit, or Mexico’s Congress. Just Friday, Sali- strong. the erosion of our manufacturing sec- nas’ brother confessed to widespread The NAFTA tent is being pitched on tor. Instead of focusing on the present corruption in the New York Times. the front lawn of the White House, and and future, pictures of Smoot and OTHER AGREEMENTS the corporate jets are descending on Hawley will be dusted off and put on It is not just the NAFTA claims that National Airport offloading the Na- display. The proponents of fast track fail to stand the test of time, overstat- tion’s top-paid CEO’s to lobby for the will unleash a barrage of hyperbolic ing the benefits of trade agreements is administration’s effort to renew fast- rhetoric declaring an end to civiliza- a time-honored tradition. When we track trade authority. Of course it is tion as we know it if we fail to pass ratified the Tokyo round of the GATT no longer referred to as fast track. In- fast track. it was hailed as a significant achieve- stead the administration has offered a NAFTA ment that would open markets and cre- clumsy euphemism—normal trade au- If the proponents of fast track insist ate millions of new jobs in manufactur- thority—to obscure the fact that the on engaging in a debate about the past, ing. In the end, the only market that sole purpose of fast-track is to stifle then let us examine how the rhetoric opened was ours, and the results were debate by subverting the Congress’ and the agreement has stood the test of disastrous. From the end of the Tokyo round to the Uruguay round we lost constitutional obligation to regulate time. During the NAFTA debate we two million manufacturing jobs and foreign commerce. Yet there is nothing were told that a failure to pass NAFTA posted over $1.5 trillion worth of trade normal about a $100 billion plus trade would have a devastating consequences for the United States and Mexico. If deficits. deficit, nothing normal about Congress A generation later the Uruguay NAFTA failed, Mexico’s economy abandoning its constitutional respon- round has delivered the same disas- would collapse, drugs would flood sibilities, nothing normal about stag- trous results as the Tokyo round. Since across the border, immigration would nant wages and an erosion of our man- passage of the WTO, we have recorded increase, and dangerous leftists, who ufacturing base. two of the largest trade deficits in our The administration argues that they were denied the presidency thanks to history. Last year alone, the United need fast-track authority because no massive electoral fraud, would replace trade deficit in goods was $191 billion. Carlos Salinas, a man virtually canon- one will negotiate with the United In 1995 our deficit was $173 billion. If States unless they have fast track. A ized both by United States officials and this trend continues this year, the 1997 more likely scenario is that the admin- by a synchophatic press blind to the trade deficit could exceed $200 billion. istration would prefer that Congress endemic corruption that permeated his Moreover, our trade deficits with the not review a legacy of poor trade deals; regime. so-called big emerging markets eroding manufacturing strength and a Three years later what has NAFTA [BEMs]—markets that this administra- trade policy that puts the interests of wrought? The Mexican economy col- tion has targeted for future growth— the multinational corporation before lapsed, wages fell by 40 percent, two are appalling. The big emerging mar- working-class Americans. While the million Mexicans sank further into kets include: Argentina, Mexico, administration embraces the Fortune poverty, and America’s trade surplus Brazil, Poland, Turkey, China, South 500’s agenda, it has turned a cold shoul- with Mexico disappeared, replaced by a Korea, Taiwan, Hong Kong, der to those who have been left behind $15 billion annual deficit. United States Phillippines, Vietnam, Brunei, Malay- by globalization, the working men and factories accelerated a move to Mexico, sia, Thailand, Singapore, Indonesia, women of this country. not to supply a Mexican consumer mar- India, and South Africa. Since the com- The end of the cold war has created a ket, which even the American Chamber pletion of the Uruguay round, the trade seismic shift in the global economy. of Commerce in Mexico concedes does deficits with these countries have ex- The American worker has now been not exist, but to ship products into the ploded. In 1993, the United trade deficit thrown into bare knuckle competition United States. Of our $54 billion in ex- with these countries was $43 billion. against the new entrants to the global ports to Mexico in 1996, more than 50 After being the subject of focus by the economy: countries whose productive percent were components sent to the Clinton administration, the trade defi- and motivated work force will accept mequiladora region alone. Those ex- cits with these countries had widened much less than our workers. As ports will never see the Mexican to $77 billion in 1996. Moreover, with globalization has increased world consumer market. Rather, the over- the recent Asian currency devaluation trade, the American worker has faced whelming majority, over 98 percent ac- these deficits are poised to explode. an all out assault on their wages, bene- cording to the Mexico Department of The countries themselves recognize fits, and overall standard of living. Commerce—[SECOFI] will return to the value of devalued currency. On Oc- Instead of engaging in a debate on the United States as finished products. tober 17, Taiwan devalued its currency the impact of this changed world, our Moreover, according to Cornell profes- not because it was under attack, not trade policy remains a prisoner to a sor Kate Bromfenbremmer, United because the country’s fiscal policies cold war mentality, treating trade as a States employers continue to use the were unsound, but merely to remain stepchild to foreign policy, continuing possibility of movement to Mexico as competitive with the other Asian ti- to serve up unilateral concession after leverage to limit wage gains. gers as an exporter. unilateral concession in the hope that Meanwhile, the Asians and Euro- Multinational companies also recog- our trading partners will be converted peans, the ones that were supposed to nize this. Cheap currency, along with by the persuasiveness of our elegant be the losers as a result of NAFTA, cheap labor, encourage U.S.-based mul- economic models and focusing exclu- have maintained trade surpluses with tinationals to locate new factories November 5, 1997 CONGRESSIONAL RECORD — SENATE S11739 abroad. The results are devastating for better than service industry jobs. Is full-time male workers fell. Can there the American worker. The New York there any doubt that our trade policy be any doubt as to why the OECD de- Times recently published a chart show- should be designed to expand these op- clared that the United States had the ing that the majority of GM’s new portunities? widest pay disparity in the industri- component factories are outside the II. LABOR AND ENVIRONMENT STANDARDS alized world between the highest and United States. Many of these facilities During this limited fast-track de- lowest paid employees? are located in Mexico. These factories bate, we have heard time and time Failure to address this issue, offers won’t supply the Mexican consumer again that it is inappropriate for the tacit approval for unsafe conditions market. Rather they will employ United States to dictate changes in around the world. In his recent book, cheaper labor for imports into the other country’s domestic laws. This ar- ‘‘One World Ready or Not,’’ Bill United States. gument is heard most frequently when Greider discussed devastating indus- At the same time that GM opened labor and environment standards are trial accidents around the world result- these new plants across the globe, its suggested as appropriate topics for ing from a failure to enforce basic U.S. employment declined by over 25 trade negotiations. In fact, Ambas- workplace standards. Perhaps the most percent. This decline did not occur dur- sador Barshefsky has stated, ‘‘it is not chilling example involved a fire in ing a devastating recession. Rather it realistic to suggest that countries will Thailand at the Kader industrial toy occurred during a period of sustained rewrite their domestic labor and envi- factory that officially killed 188 and in- growth. GM is not alone. In 1985, Gen- ronmental laws for the privilege of jured 469. The actual toll was undoubt- eral Electric employed 243,000 Ameri- buying more of our goods.’’ Yet appar- edly higher. This death toll far sur- cans, by 1995 it employed only 150,000 ently these countries, including the passed the Triangle Shirtwaist Co. fire and according to executive vice presi- United States, have no trouble chang- of 1911. The United States’ unwilling- dent Frank Doyle, ‘‘We did a lot of vio- ing their domestic copyright and pat- ness to address this issue, by requiring lence to the expectations of the Amer- ent laws for just that purpose. that products entering the country be ican work force.’’ Another leading U.S. Moreover, the recent IMF bailout of produced in a safe and humane manner, company IBM, now employs more peo- Indonesia, like many IMF rescue pack- must ultimately bear some of the re- ple outside the United States than here ages, contained a number of provisions sponsibility for this tragedy. in America and has shrunk to half its affecting domestic rules that have an We must begin addressing these is- former size. Yet these are the compa- economic impact, including banking sues. Without labor reform abroad, we nies that are lobbying for fast track. laws, domestic corruption rules, and are destined to merely create export The same companies are asking for fast government spending decisions. In an platforms designed to provide the Unit- track are the ones that are cutting example closer to home, the United ed States with cheap products produced jobs. In fact our largest exporters have States, in the United States-Japan in a fashion that has not been accept- not created a net new job in the 1990’s. framework negotiations, agreed to re- able to the United States for nearly a While our trade deficits continue duce its budget deficit, as part of that century. The end result will be to first their unabated rise, domestic wages overarching trade agreement. In fact, reduce U.S. wages and then, in time, stagnate, and job security vanishes, that’s what fast track is all about, our labor and environmental protec- the administration and its corporate changing domestic laws as a result of tions. allies continue to tout export-led trade agreements. However, history offers us a simple growth as if it were a wonder drug that In addition, U.S.T.R. recently con- solution. Like Henry Ford earlier this will cure our economic ills. Unfortu- cluded negotiations designed to har- century, the United States can seek to nately, the only wonder about export- monize drug and medical device stand- raise wage rates and provide workers led growth is how a handful of our larg- ards and the administration is seeking with the opportunity to purchase the est companies account for 80 percent of authorization to begin the process of products they manufacture. Moving our total exports. These are the same harmonizing transportation and auto- others higher is an infinitely better companies who have spent most of the motive environmental standards. If it choice than the United States moving 1990’s downsizing their work forces and is acceptable to harmonize vehicle lower. moving production off shore. This off- standards, what is wrong with harmo- III. QUALITY OF PREVIOUS FAST-TRACK shore shift is reflected in trade balance nizing labor rules and industrial envi- AGREEMENTS deficits as far as the eye can see. Is it ronmental standards? The administration claims that fast- any wonder that these companies are The question then is not whether do- track authority is normal trade nego- paying up to $100,000 a piece to push mestic laws can be changed as a result tiating authority. However in the 221 fast track. This small investment will of trade negotiations, it is whether years since the drafting of the Declara- enable them to save millions by taking labor and environmental standards tion of Independence, only five trade advantage of an abundant supply of have an impact on trade, competitive- agreements have been approved cheap labor. The real fast track is how ness, and the overall economic stand- through the use of fast-track author- quickly manufacturing jobs can be ing of the United States. To that ques- ity: first, the Tokyo round 1979 trade moved abroad. tion the answer is undoubtably yes. agreement; second, the United States- So in this era of free trade, what kind Permitting products made under sub- Israel free trade agreement; third, the of jobs are we creating? Are they the standard working conditions to enter Canada-United States Free-Trade high-technology, high-wage jobs of the the United States, gives those products Agreement; fourth, the North Amer- future? Not according to the Depart- an unfair advantage. The result is pres- ican free trade agreement; and fifth, ment of Labor. In cataloging the occu- sure to U.S. wage rates, with tacit ap- the Uruguay round trade agreement in pations with the greatest growth in the proval of substandard labor rules 1994. It is now appropriate to review future, Labor believes that the follow- abroad. what has happened in the aftermath of ing occupations offer the best oppor- These imported products come from each of these agreements to determine tunity for growth: cashiers; janitors countries with no minimum wage, so- whether U.S.T.R. was successful in and cleaners; retail salespeople; wait- cial security, environmental rules, their negotiations. Unfortunately, I be- ers and waitress; registered nurses; worker compensation, or unemploy- lieve the answer to this question is general managers and top executives; ment insurance and they pressure U.S. that these negotiations have resulted systems analysts; home health aids; wage rates which continue to decline. in poor agreements and in poor results guards; and nursing aids. Median U.S. family income is 2.7 per- for the United States. After each of Only one high technology job on the cent below 1989 levels. Moreover, when these agreements, the United States’ list and no occupations related to ex- adjusted for inflation, the incomes for trade deficit with each of the targeted ports. Moreover, a recent study sug- the bottom 60 percent of households countries degraded, in many instances gested that our best paying jobs are have fallen over the past 7 years. In ad- significantly. Moreover, after the two the ones that are subject to the most dition, last year, during what is gen- multilateral trade agreements, the competition from imports. That makes erally considered to be a good eco- overall U.S. merchandise trade deficit perfect sense. Manufacturing jobs pay nomic year, the median earnings of has increased. S11740 CONGRESSIONAL RECORD — SENATE November 5, 1997 The 1979 Tokyo round agreement was derful process if you happen to benefit (GDP), it also is a growing drag on GDP designed to eliminate worldwide non- from it, like the sugar industry or the growth by 1.6%. tariff trade barriers with a specific em- citrus farmers who secured last minute In short, our current trade policies are phasis on the Japanese. In 1978, before changes to the NAFTA. It is not, how- harming the nation, including its consumers and workers. the agreement was reached, the United ever, what our Founding Fathers envi- The goal of trade negotiation is to set States-Japan trade deficit was $11.7 bil- sioned. rules by which global commerce operates. lion. The U.S. merchandise trade defi- Instead of trying to stifle debate we But this administration and the Repub- cit with all of our trading partners was should be encouraging it, debating who lican congressional majority are openly ad- $5.8 billion. By 1996, the United States- the winners and losers are as a result vocating little more than 19th century Japan deficit had reached $47 billion of our trade policy, both at home and laisez-faire capitalism. and was $191 billion, before technical abroad. Debating what we gain and No trade-related protection for the envi- ronment or worker rights. adjustments, with the rest of the what we lose, the proponents of fast No guaranteed workplace health and safety world. This sad story is continued in track want to frame this debate as a standards. each of the subsequent fast track test of American leadership. In one No prohibitions against child labor. agreements. Prior to the United sense it is about leadership. Real lead- Such rules do nothing but create a race to States-Israel trade agreement in 1985, ership would be to break with the the bottom between developed and under- the United States maintained a surplus failed policies of the past while stand- developed countries. Finally, and perhaps most importantly, of several hundred million dollars with ing up for the principles that are the Israel. That surplus began to degrade the fast-track battle now before Congress foundation of our democracy. Real raises the question of who will decide the immediately following the agreement leadership would be to show confidence rules of globalization—the president and his and by 1996, the United States had a that the agreements that are nego- corporate trade advisers or the American $400 million deficit with Israel. The tiated are able to stand up to full and people through their elected congressional same pattern has become apparent in vigorous debate, rather than being ne- representatives. our free-trade agreements with Mexico gotiated removed from review. Contrary to administration assertions, and Canada. With Canada a $10 billion Real leadership would be to stand up President Clinton already has the authority to negotiate additional trade deals. deficit became a $21 billion deficit by for the children who toil in the sweat- 1996. The Mexican situation is equally Other nations will negotiate. shops of the world turning out products Over the past four years, for instance, the poor. A $3 billion deficit with Mexico bearing the logos of our great United States concluded 200 trade deals with- became an approximately $17 billion consumer products companies. Real out fast-track. deficit by 1996. Last, following the Uru- leadership would be to acknowledge What the president really is seeking is a guay round, the American trade deficit that the world has changed, that Asia truncated legislative procedure by which has moved from $166 billion in 1994 to has embarked on a different model of Congress virtually preapproves any trade agreement that he makes. $191 billion in 1996 and with the Asian development and that we are not going currency crisis could easily top $200 Correctly, the administration emphasizes to convert them into clones of Amer- the importance of trade to the nation. billion in 1997. Now we are being asked ica. Most of all, real leadership would For this very reason, Congress should con- to approve fast-track free trade nego- be to stand up to predatory trade prac- sider proposed trade agreements under its tiations with Chile. How long will the tices that are laying waste to our man- normal constitutional congressional proce- 1996 U.S. trade surplus of $1.8 billion ufacturing sector, not just with rhet- dures. last? oric, but with deeds. This alone guarantees a full and open con- CONGRESSIONAL AUTHORITY sideration of whether these deals truly are in The hope and promise of America is our national interest. Clearly our trade policy has failed to that an ever-rising tide will lift all yield tangible results, but as Jack Ken- boats. Those that are pushing for fast 1966 Data nedy once said, ‘‘Our task is not to set track have been tossing Americans the blame for the past, it is to set the overboard to gain ballast in the global Ratio imports to course for the future.’’ It is time we ar- domestic consumption economy. We in the Congress see it Industry/commodity (in percent) ticulated a trade policy that promotes every week when we go into the com- group the interest of working Americans. The munities that have been ravaged by the Metals: first step is to give the people a voice global economy. I see in my own back- Ferroalloys ...... 52.8 in trade policy by taking back Con- yard; the shattered dreams of the Machine tools for cutting metal gress’ constitutional authority to regu- workers at Oneita Mills and United and parts, ...... 44.3 Steel Mill products ...... 16.7 late foreign commerce. Technologies. They deserve a voice, If we can be trusted to ratify arms Industrial fasteners ...... 29.5 which is the birthright of all Ameri- Iron construction castings ...... 46.2 control treaties and the chemical cans, and fast track takes that voice Cooking and kitchen ware ...... 59.5 weapons convention, what is it about away. Cutlery other than tableware ... 31.8 trade agreements that make them so I ask unanimous consent that an ar- Table flatware ...... 63.6 significant that the Constitution must ticle and a chart on this subject be Certain builders’ hardware ...... 19.5 Metal and ceramic sanitary be suspended and debate and amend- printed in the RECORD. ments limited? ware ...... 18.2 There being no objection, the mate- Machinery: We have been told time and again rial was ordered to be printed in the that agreements would unravel if Con- Electrical transformers, static RECORD, as follows: converters, and inductors ...... 38.6 gress was allowed into the process. Yet, TRADE ON WRONG TRACK Pumps for liquids ...... 29.6 when an administration needs to gar- Commercial machinery ...... 19.7 (By Pat Choate) ner votes to secure passage of a trade Electrical household appliances 18.2 agreement, the bazaar is opened and The question is not whether we will live Centrifuges, filtering, and puri- the agreements are amended. with more globalization, for we surely will, fying equipment ...... 51.2 It is of course untrue to say that fast but to what purpose, under what rules, and Wrapping, packing, and can- determined by whom. track precludes any amendments. sealing equipment ...... 26.7 As to purpose, trade is not a religion, as Scales and weighing machinery 29.8 Trade agreements cannot be amended actions of the Clinton administration seem Mineral processing machinery .. 64.2 on the Senate floor. Instead, amend- to suggest. Farm and garden machinery ments to agreements are cut during Rather, trade is a tool of macroeconomics, and equipment ...... 21.7 the process of putting together imple- no greater or lesser than fiscal, monetary or Industrial food-processing and menting legislation. This is a proce- exchange-rate policy. related machinery ...... 23.0 dure in which the Finance Committee Simply put, we trade for the benefit it Pulp, paper, and paperboard takes on the aura of the College of Car- brings—more and better jobs and a higher machinery ...... 34.4 living standard. Printing, typesetting, and dinals. Behind closed doors deals are Yet current U.S. trade policies are generat- bookbinding machinery ...... 54.8 cut, three puffs of white smoke appears ing precisely the opposite result. Metal rolling mills ...... 61.4 and a trade agreement secures enough Indeed, even as trade is becoming a grow- Machine tools for metal form- votes for final passage. This is a won- ing portion of our gross domestic product ing ...... 61.4 November 5, 1997 CONGRESSIONAL RECORD — SENATE S11741 1966 Data—Continued 1966 Data—Continued ‘‘take all or nothing’’ basis, which, of Ratio imports to Ratio imports to course, is a loaded deck because as domestic consumption domestic consumption soon as that happens, then the argu- Industry/commodity (in percent) Industry/commodity (in percent) ment they make to you is not eco- group group nomic; it is political. Non-metal working machine Ignition and starting electrical If the President negotiates a trade tools ...... 44.1 equipment ...... 22.3 agreement, let’s say, with Chile, and Taps, cocks, valves, and similar Rail locomotive and rolling devices ...... 27.6 stock ...... 22.8 then he brings it to the Congress on Gear boxes, and other speed Carrier motor vehicle parts ...... 19.5 fast track, all or nothing, then we start changers, torque converters .. 30.5 Automobiles, trucks, buses ...... 39.0 asking economic questions about the Boilers, turbines, and related Motorcycles, mopeds, and parts 51.8 trade agreement. We say, well, you machinery ...... 48.0 Bicycles and certain parts ...... 54.5 know, this balance here doesn’t seem Electric motors and generators 21.1 Miscellaneous manufactors: to work. You don’t open up their mar- Portable electric hand tools ..... 27.4 Luggage and handbags ...... 76.9 Leather goods ...... 37.4 ket the way you should and so forth. Nonelectrically powered hand The next thing they say to you is, oh, tools ...... 34.1 Musical instruments and in- Electric lights, light bulbs and struments ...... 57.7 well, we have to approve it; otherwise, flashlights ...... 31.0 Toys and models ...... 72.3 the political relationship will go to Electric and gas welding equip- Dolls ...... 95.8 pieces. That is what we were told on ment ...... 18.4 Sporting Goods ...... 32.0 the Mexico agreement. We had debate Insulated electrical wire and Brooms and brushes ...... 26.5 on the floor of the Senate, and piercing cable ...... 30.9 * 1996 data from ITC publ. 3051. remarks were made about the econom- Electronic products sector: Mr. HOLLINGS. I yield now to our ics of that Mexican agreement and how Automatic data processing ma- distinguished colleague from Maryland it would not work and how disadvanta- chines ...... 59.3 the remaining time that I have. geous it was. Well, then the argument Office machines ...... 48.0 The PRESIDING OFFICER. The Sen- Telephones ...... 26.2 shifted in order to try to push it Television receivers and video ator from Maryland is recognized. through. The administration didn’t monitors ...... 53.4 Mr. SARBANES. Mr. President, I talk anymore about the economics of Television apparatus (including want to get into the RECORD the figures it; they started talking about the poli- cameras, and camcorders) ..... 74.7 that underlie this chart on the deterio- tics of it. They said: Well, Mexico is Television picture tubes ...... 33.8 ration in the U.S. net foreign invest- our next-door neighbor. If we don’t ap- Diodes, transistors, and inte- ment position. prove this trade agreement, we will grated circuits ...... 60.6 In 1976, the United States had a $180 have a crisis in our relationship. Electrical capacitors and resis- billion positive net position. We were a tors ...... 68.1 In effect, that was probably true. But Semiconductor manufacturing creditor nation, to the extent of $180 that’s the argument that then is used, equipment and robotics ...... 21.9 billion. That rose until, in 1980, it hit not the economic argument. So I think Photographic cameras and its peak at just under $400 billion. That these agreements ought to be brought equipment ...... 84.0 is net. That is in our favor, $400 billion. to the Senate. We ought to have a Watches ...... 95.9 Since 1980, that has begun to deterio- chance to amend them, if we choose to Clocks and timing devices ...... 54.9 rate, as we can see. It crossed into the do so, not give away or derogate our Radio transmission and recep- minus figures in 1986, at minus $13 bil- authority in that important regard. tion equipment ...... 47.9 lion. In 1986, 11 years ago, we were at Tape recorders, tape players, Frankly, I think if the agreements VCR’s, CD players ...... 100.0 $13 billion minus. Since then, it has have to come to the Senate in that Microphones, loudspeakers, and come down and we were at $870 billion form, they are going to negotiate audio amplifiers ...... 67.6 in 1996, and it is estimated that the 1997 tougher agreements. Unrecorded magnetic tapes, figures will go to $1 trillion in debt, in If the administration knows that discs and other media ...... 48.2 a debtor position. those agreements are going to be sub- Textiles: This is incredible that, in just over 10 mitted to the Congress and subject not Men’s and boys’ suits and sport years, we have gone from balance in only to the up-or-down vote of the Con- coats ...... 39.4 our net foreign investment position to gress, but also subject to amendment, Men’s and boys’ coats and jack- a $1 trillion debtor position. I mean, we ets ...... 56.3 they are going to have to negotiate a Men’s and boys; trousers ...... 37.7 have been adding it at the rate of $100 much tighter agreement that will with- Women’s and girls’ trousers ...... 47.9 billion, $120 billion, and $150 billion a stand scrutiny. And I think it will Shirts and blouses ...... 54.8 year because of what happened to our achieve a better balance, a better bal- Sweaters ...... 71.1 trade balance, which the able Senator ance between our opportunity to go Women’s and girls’ suits, skirts, from South Carolina pointed out. So into the other countries’ markets and and coats ...... 55.9 we have now come down to the point their opportunity to come into our Women’s and girls’ dresses ...... 26.9 where we are $1 trillion in a debtor po- market because, clearly, what has been Robes, nightwear, and under- sition—the world’s largest debtor coun- wear ...... 51.0 happening for the last 20 years is that Body-supporting garments ...... 37.0 try. our market has been opened up far Neckwear, handkerchiefs and Now, these are the issues we ought to more than other nations have recip- scarves ...... 55.5 be addressing. Fast track doesn’t begin rocated. Gloves ...... 68.5 to address that issue. All fast track is Mr. HOLLINGS. Mr. President, right Headwear ...... 50.5 trying to do is get the Congress to give to the point, with respect to how you Leather apparel and accessories 70.2 up its right to review these agree- make your agreements and the charge Rubber, plastic, and coated fab- ments. Everyone says, well, we ought now that this is not a referendum on ric material ...... 86.4 to do that. Look at how we have been Footwear and footwear parts .... 83.1 NAFTA and Mexico, at the time Transportation equipment: doing on the trade front. Well, how NAFTA came up with respect to Mex- Aircraft engines and gas tur- have we been doing on the trade front? ico—I had voted for the free-trade bines ...... 47.5 Look at this deterioration over the last agreement, the North American Free Aircraft, spacecraft, and relat- 20 years. By coincidence—perhaps not Trade Agreement with Canada, because ed equipment ...... 30.5 so much by coincidence—ever since we we had similar economies: individual Internal combustion engine, started doing fast track, we started rights, appeal processes, open markets, other than for aircraft ...... 19.9 getting deterioration in the trade bal- those kinds of things, and a revered ju- Forklift trucks and industrial ance, year after year. I think these vehicles ...... 21.5 diciary. Construction and mining equip- trade agreements need to be brought I will never forget that my colleague ment ...... 28.6 back to the Senate to give us a chance from New York, the distinguished sen- Ball and roller bearings ...... 24.9 to review them. If they had to come ior Senator, Senator MOYNIHAN, said, Batteries ...... 26.4 back here and be reviewed, not on a ‘‘How can you have free trade when you S11742 CONGRESSIONAL RECORD — SENATE November 5, 1997 don’t even have free elections?’’ Well, policies on the part of the United trade-oriented occupations will be we look to the European experience. States that had been met by a liberal- much higher than those occupied in The Europeans found out that the free- ization on the part of our trading part- fields that are artificially protected trade approach did not work. They ners has benefited the people of both from foreign competition. taxed themselves $5 billion to build up countries. We are in an extended and Now, does that mean, Mr. President, the entities of a free market in Greece significant period of economic gains that under any and all circumstances and Portugal before they admitted today, as we speak here, in the after- we should be indifferent to the Greece and Portugal into the Common math of a series of policies carried out antitrade activities of some of our Market, and they did just exactly that. by administrations, both Republican trading partners? Certainly not. As Instead, we were told, no, Mexico was and Democratic, to free trade across this body knows, I have been highly a prototype, said the Secretary of the the entire world. The North American critical of some of the trade policies of Treasury and the Vice President of the Free-Trade Agreement and the most this administration with respect to United States. We went pell-mell head- recent General Agreement on Tariffs China, with respect to Japan, and long, and everything they contended and Trade all reflect the increasing de- sometimes with respect to the Euro- has gone awry the other way. They said pendence of all of the nations of the pean Community, when those policies that Mexican wages would be up. They world on trade and the fact that all can have imposed artificial restrictions on have gone from $1 an hour down to 70 prosper from a greater degree of free American producers. I wish that this administration took a much stronger cents an hour. The American Chamber trade. of Commerce in Mexico City says that Now, Mr. President, I think it’s pos- stance last week with respect to Chi- 60 million Mexicans are living in pov- sible to find examples in history, per- nese restrictions on our goods, given erty, and 25 Mexicans make as much as haps to find a few examples of the the huge nature of our bilateral trade 25 million Mexicans. They said that we present day, of nations that have tried deficit. But the fact that we can criti- would have a plus balance of trade. In- to create a sense of self-sufficiency cize the administration for not having stead we went from the plus balance to with little, if any, foreign trade of any more eloquently and more decisively supported American interests is not an a negative balance. They said immigra- commodity whatsoever. When one argument against granting our admin- tion would be better. It is worse now. searches out such examples, however, istration the opportunity to negotiate They said drugs would be better. It has Mr. President, one finds, in every case, free-trade agreements. It is, if any- gotten worse. Just look at the morning that those countries are poverty- thing, an argument for it because, Washington Post. stricken and show no particular move- without exception, Mr. President, the You could go right on down. Every- ment out of that poverty-stricken na- nations, particularly in Latin America, thing they said happened the other ture. It is only when these nations free with whom we are likely to negotiate way. As a result, we never have really their economy and tend to free their free-trade agreements, have greater built up the entities of a free market trade policies that they begin to pros- tariffs and greater restrictions against like, for example, we have in Chile. I per. our goods than we do against theirs at said 4 years ago I would be glad to vote It’s also possible, I suppose, to imag- the present time. So it is clear that a for a free-trade agreement with Chile. ine a United States which, in every sin- reciprocal lowering of those barriers at They have a revered judiciary, they do gle commodity consumed in the coun- both ends will benefit a wide range of have free-market rights. They have try, was a more efficient producer than exporting industries in the United labor rights, they have rights of ap- any of its trading partners and, there- States. peal. So there it is. When they say fore, would have no need for imports at Now, should we provide the Presi- NAFTA referendum, yes, it is. There is all. But, of course, that doesn’t happen dent, at the same time, with more no education in the second kick of a in the real world. One’s very success tools to defend American interests? We mule, Mr. President. would create fields in which we con- certainly should. For example, I sup- We understand when they gave us tinue that domination and other fields port the efforts of my colleagues, Sen- that fast track on it that we were get- in which countries begin to catch up ator GRASSLEY and Senator DASCHLE, ting in trouble. But they wouldn’t lis- with us. in proposing to amend this legislation ten. Now is the time to stop, look, and Trade is a two-way street. Trade is a with the text of S. 219, the Agricultural listen, and deliberate and consider the benefit not just to those who work in Products Market Access Act of 1997. agreement itself and not fall for this the trade field, but to consumers who That bill would set up a system for ag- parliamentary booby trap of the White are permitted a greater choice of high- ricultural trade identical to that used House just opening up the bazaar and er quality goods at lower prices than to identify violations of intellectual selling off line-item vetoes over on the would be the case if trade were re- property rights, the special 301 proce- House side as fast as they can trying to stricted. That, of course, does inevi- dure. The bill would require the Office change that CBI vote they got on last tably result in losers in our economy of the U.S. Trade Representative, an- evening over in the House of Rep- because, as we export more, as we nually, to designate as priority coun- resentatives. So the bazaar is open. produce more for export, we also, as a tries those trading partners having the They are trying to buy off the votes. prosperous American society, have most egregious trade barriers to Amer- They are amending while we are talk- more money to spend and often choose ican agricultural products. The USTR ing about having hopefully the right to to purchase imported goods in some would then have the power to inves- amend. areas. tigate those countries to determine I yield the floor. There are many occasions on which whether countervailing measures are Mr. GORTON. Mr. President, more it can be argued that there isn’t a huge merited. than almost any other debate in this increase in employment resulting in My State, Mr. President, is a great Senate this year, this one seems to me freer and greater trade. But it is ex- producer of agricultural products for to pit hope versus fear, to pit the les- tremely difficult to argue the propo- export, just as it is of intellectual prop- sons of history against the blindness to sition that export-oriented industries, erties and of aircraft. We believe in the those lessons. One Senator, who will generally speaking, in the fields in prosperity that comes from free trade. remain nameless, this morning made which American production is most ef- We want that free trade to be truly free the statement that free-trade arrange- ficient and effective, whether indus- in both directions, and no power that ments arising out of fast-track propos- trial or agricultural, pays its employ- we could grant the President is more als like this would harm not only the ees far more than do those unskilled likely to lead to that free trade in both people of the United States, but the trades that are affected by foreign directions than the fast-track legisla- people of the other nations entering competition, and which jobs are more tion that is before us now. That legisla- into such a free-trade proposition. likely to be lost because someone else tion, Mr. President, should be passed. Mr. President, that exhibits a blind- can do a better job than we do. Mr. SARBANES. Mr. President, what ness to what history has shown us for So even if total employment is a is the time situation? more than half a century. Without ex- zero-sum game, which it is not, the The PRESIDING OFFICER. The Sen- ception, each liberalization of trade wages and salaries of those involved in ator from Maryland has 41 minutes and November 5, 1997 CONGRESSIONAL RECORD — SENATE S11743 50 seconds. The Senator from Delaware Mr. DORGAN. We will not seek to deficit, balance of trade, and all of as 77 minutes. delay the vote. If the Senator’s expec- these other things. But that is not real- Mr. SARBANES. Mr. President, in tation is to try to get to a vote before ly at issue here because we are not de- view of that, I think the other side 5 we would not seek to delay that but bating a trade agreement. We are de- should now use some of its time since we would like very much to have a cou- bating really a process—not an agree- we are down now to 40 minutes and ple of minutes to try to make sure we ment. they have almost double as much. get the speakers here so we have the 38 And the process is for the ability of How much is on the other side? minutes available for the remaining the President to be able to sit down The PRESIDING OFFICER. Seventy- speakers. If it turns out we don’t need and negotiate a deal that is going to seven minutes. that, we would be happy to yield that open up markets around the world, Mr. SARBANES. They have about back as well. We have now requests for hopefully in South America. The Sen- twice as much time as we have. speakers that are available to use the ator from South Carolina said he was The PRESIDING OFFICER. If nei- time. ready to vote for an expansion of ther side yields time, the time will be Mr. ROTH. Why don’t we just go NAFTA to Chile possibly. We may have charged equally to both sides. ahead and call for a quorum, and take that opportunity. I don’t think we get Mr. SARBANES. Mr. President, I ask it from both sides equally? We are now to that opportunity, which I think is unanimous consent that we go into a checking to see if we need to preserve an important one for this country, un- quorum call and the time to be charged time. less we have fast-track authority for to the other side. Mr. SARBANES. The problem about this President. I would like to see the The PRESIDING OFFICER. Is there that solution is it will then use up part same frankly for Argentina and Brazil. objection? of the 40 minutes that we have left I think it would be a tremendous op- portunity for this country to expand Ms. COLLINS. I object. which the Senator has calculated is our markets in the hemisphere to Mr. ROTH. I object. needed in order to complete the re- countries that are capable of compet- Mr. SARBANES. I am glad to see the mainder of his speakers that we have. ing on a fair basis with this country. chairman of committee. We are down Mr. ROTH. How much time do you Those are great opportunities for to 40 minutes and there are almost 80 need for that? American workers as well as for better minutes on the other side. And as we Mr. SARBANES. Forty minutes. approach the conclusion of the debate I Mr. DORGAN. We desire to use all of economic and diplomatic relationships think it would be reasonable at this the 40 minutes. As I understand the between the countries in North and South America. point for the other side to use some of Senator from Delaware, he is now So, I see this not only as economic its time. checking to preserve that. It would not but also as a cultural and diplomatic Mr. DORGAN addressed the Chair. be our intention to delay the vote to opportunity for us. But it does not hap- The PRESIDING OFFICER (Ms. COL- the extent he is going to yield time. We pen unless we put the process in place LINS). The Senator from North Dakota certainly understand the vote can be for the President to negotiate these is recognized. held earlier. We are now making cer- agreements. Mr. DORGAN. Madam President, my tain that those who asked to speak I know the Senator said there are understanding is that the other side come to the floor to have the oppor- lots of other agreements that have may not use all of its time and would tunity to do so. If that gets substan- been negotiated. That is true. But then perhaps want to yield whatever tially delayed, we would understand these are major negotiations. These are they don’t use and have a vote earlier the Senator’s desire to proceed. I do negotiations that without a structure than 5. I understand that the unani- not want to lose, at least to the extent such as fast track I don’t believe you mous-consent request that was entered we can prevent it, the 40 minutes that are going to get an honest negotiation into calls for a vote no later than 5 is available. with one side sitting across from the o’clock. So presumably, if all of our Mr. SARBANES. If the Senator will other and saying, ‘‘Let’s put together time is used and they yield back what- yield, our people are not here because our best agreement. Let’s work on give ever time they don’t use on that side, we had calculated that the time would and take. You give. I give. We work on they would expect to have a vote ear- go back to your side. And the fact all of the details on how we structure a lier than 5 o’clock. there is so much of an unbalance, I formalization of free trade between to Mr. ROTH. That is correct. think demonstrates that. two countries.’’ And say, ‘‘Oh, by the Mr. DORGAN. Madam President, we Mr. ROTH. I have a request from the way, after I have given up some and have about four Members on our side distinguished Senator from Pennsylva- you have given up some, and we have that still desire to speak on this mat- nia. I will yield him 5 minutes of my been able to negotiate as best we can ter. We have alerted their offices. We time. I yield 5 minutes to the junior to a final agreement, I am going to expect some of them to be here mo- Senator from Pennsylvania. take it back to the Congress, and they mentarily and expect to use the re- The PRESIDING OFFICER. The Sen- can change it and put it all back in our maining time. I think that is the pur- ator from Pennsylvania is recognized. favor.’’ pose of the Senator from Maryland Mr. SANTORUM. Thank you, Madam I don’t know of too many countries asking to reserve the 40 minutes. I cer- President. Hopefully this will provide that are going to be willing to do that, tainly have no objection. an opportunity for the chairman to get who are going to be willing to sit down Mr. SARBANES. All I am trying to some of the Members to the floor, and in the first place and say, ‘‘We are protect again is the situation in which break up this discussion which is using going to negotiate with you in good all time is used up on this side and all of your time. faith, and, by the way, your good faith then there are 80 minutes left on the Let me first rise, having sat in the means nothing because you cannot other side. chair for the last hour. I listened to stand behind your word because the Mr. ROTH. I say to the distinguished much of the debate. As someone who Congress can come, amend, and change Senator from Maryland that at this has been listening and who voted what we negotiated in a final agree- time we only have one request. So we against NAFTA, someone who had ment.’’ probably are going to yield back time. some of the same concerns that the That is what makes this debate We are waiting to see if anybody else Senator from South Carolina voiced somewhat vexing in my mind because wants to speak. about the structure of the Government, we are talking about all of these hor- Mr. DORGAN. The Senator from judicial system, and other things, and rible inequities that have resulted as a Maryland is simply asking if we could as a result I felt very comfortable vot- result of our trade policy. The people preserve 40 some minutes that we have. ing against NAFTA. But in the House I who are arguing against fast track Will the Presiding Officer indicate to voted for fast track because I believe want to continue our trade policy. This us the time available? that it is important for us to continue policy they say is so bad, they want to The PRESIDING OFFICER. The to expand our trade horizons. We are keep it in place by not allowing the amount of time remaining is 38 min- not debating the trade agreement. We President to negotiate better agree- utes and 48 seconds. have seen lots of things about the trade ments with other countries or in the S11744 CONGRESSIONAL RECORD — SENATE November 5, 1997 world bodies to be able to open up Mr. MOYNIHAN. Madam President, I The PRESIDING OFFICER. Who trade to create a better trade oppor- simply would wish to say that I have yields time? tunity for us around the world. listened with great respect to the Sen- Mr. SARBANES. Will the Senator So I don’t understand, and frankly, I ator from Maryland as regards the yield for a question? am a little disturbed that we keep time sequenced in which the fast-track hearing the rhetoric of bad trade and legislation went into effect and the for- The PRESIDING OFFICER. Who horrible agreements at the same time eign trade deficit began to grow. yields time? not wanting to change those to make I say two things. Mr. ROTH. I yield 2 minutes. them better for this country. I think The first is that the essentials of the Mr. MOYNIHAN. Of course. fast-track negotiations have been in fast track is the opportunity to do The PRESIDING OFFICER. The Sen- place since 1934. Nothing that dis- that. ator from Maryland is recognized for 2 Mr. SARBANES. Will the Senator continuous occurred in 1974. What sim- minutes. yield? ply was required was at that time the Mr. SANTORUM. Certainly. I am trade negotiations turned from tariffs Mr. SARBANES. Madam President, happy to yield. on things—machines, iron ore, oil, in light of the comments, I ask unani- Mr. SARBANES. In 1975 we first pro- whatever—to the question of the more mous consent to have printed in the vided fast track. On this chart, this is complex but growing area of services, RECORD a press release from the Eco- 1975. Look at what happened with the intellectual property, and matters like nomic Strategy Institute entitled trade balance. that. That is what impels us to give ‘‘New ESI Study Finds Causes and Mr. SANTORUM. I am accepting the the President negotiating authority be- Costs of Trade Deficit More Complex Senator’s arguments as true—that in yond the simple reduction of tariffs. Than Traditional Economic Rhetoric.’’ fact what you are signifying happened The reciprocal trade agreements that There being no objection, the mate- is true. By staying there and not began back in 1934 said the President rial was ordered to be printed in the changing things does the Senator think may cut these tariffs up to 50 percent, RECORD, as follows: things would get better? To me that is and proclaim it after he has reached it the sin of when you believe that you to his satisfaction and agreement. The NEW ESI STUDY FINDS CAUSES AND COSTS OF tried the same thing, and you are going increase in the trade deficit cor- TRADE DEFICIT MORE COMPLEX THAN TRADI- to get a different result by trying the responds precisely to the onset of enor- TIONAL ECONOMIC RHETORIC same thing. Then you start to wonder mous budgetary deficits by the Federal WASHINGTON, DC.—For years mainstream what the thinking is. Government. It is elemental book- economists and economic journalists ex- Mr. SARBANES. I say to the Sen- keeping of economics—that unless you plained away public concern over the U.S. ator, if he is supporting fast track, he have a very high savings rate, which trade deficit by arguing the true cause of the is the one who wants to try the same we do not have, you will finance a Fed- deficit was the huge U.S. federal budget defi- cit and, more recently, low U.S. savings. thing because this was all under fast eral deficit by borrowing from abroad, track. However, a new study released today by the and that borrowing will take the form Economic Strategy Institute refutes these Mr. SANTORUM. I voted against of imports. In economics this is a fixed traditional explanations and argues they are NAFTA. So I think I have some legit- equation. One side equals the other. no longer adequate to explain what is, in re- imacy here. I am not debating that And at just that moment, as the Sen- ality, a significantly more complex problem some of the agreements we have en- ator from Maryland pointed out, defi- negatively affecting a wide variety of eco- tered into in this country—you can’t cits begin to grow, we have the second nomic statistics, including aggregate de- say only the ones entered into under oil shock followed by the huge deficits mand, gross domestic product, the budget fast track. We have entered into a lot of the 1980’s. They are an equivalence deficit, business financed research and devel- opment, wage rates, and exchange rates. of other agreements that have had an which comes almost at a level of book- impact. But I am not debating that keeping. They have to happen. Titled The Trade Deficit: Where Does It there are agreements that have not Now, we have on point where our Come From and What Does It Do?, the study been beneficial to the balance of trade examines the recent trends in the U.S. fed- deficits are disappearing and we should eral budget deficit and the U.S. savings rate to this country. What I am debating is have every reason in the world to think over the past decade and uses an economic that by not changing any of those that trade deficit will disappear as model to examine the costs of these deficits agreements somehow things are going well—it need not do—if our savings re- to the U.S. economy. to get better. That is really the argu- main at the low level they are. But if In contrast to a decade ago, private sav- ment here—unless we make change in they return to a normal level, which ings now exceed private investment, the U.S. those agreements things will not get we hope they will, now that the deficit economy continues to grow at a slower pace better. We cannot make those changes is not using them up, or now that more than the global economy, and net inflows of unless we have fast track. resources are available, that deficit foreign private investment are smaller. The PRESIDING OFFICER. The Sen- will shrink dramatically, or we will From 1986 to 1996, the United States achieved ator’s 5 minutes have expired. have to write all the textbooks over a $92 billion improvement in the sum of its Mr. MOYNIHAN. Madam President, private savings balance and government defi- again. cits; yet, the trade deficit and the broader will the distinguished chairman yield The PRESIDING OFFICER. The Sen- current account balance only improved by to me 3 minutes? ator’s 3 minutes have expired. $29 billion and $5 billion, respectively. In Mr. ROTH. I yield the distinguished Mr. MOYNIHAN. I thank the Chair. 1997, the combined federal and state deficit Senator 3 minutes. Mr. SARBANES. Will the Senator continues to fall, yet the trade deficit will The PRESIDING OFFICER. The Sen- yield? Will the Senator yield me 2 min- again exceed $100 billion, while the current ator from New York is recognized. utes? account deficit will be about $150 billion.

Private savings Federal and State U.S. growth (per- Global growth Net foreign pri- Net exports (bil- Current account less investment deficits 1 (billions vate investment 2 (billions of $) of $) cent) (percent) (billions of $) lions of $) (billions of $)

1986 ...... ¥12.4 ¥152.6 2.9 3.4 89.5 ¥140.0 ¥153.2 1996 ...... 9.0 ¥82.0 2.4 3.8 66.8 ¥111.0 ¥148.2 1 These figures include both government current spending and receipts, and governmental capital spending and borrowing for roads, schools, equipment, etc. The federal current spending deficit and the combined federal/state current balances are the figures cited in daily news accounts and political discussions of taxes, spending and deficits. The federal/state current deficit fell from $82.6 billion to $5.1 billion from 1986 to 1996, and should be in surplus in 1997. The capital spending deficit represents the addition of new capital assets (roads, buildings, etc.) and new liabilities (bonds) on the government’s balance sheet, and it is not an item on the government’s current income and expenditure statement; however, it is part of the nation’s combined public and private capital financing needs and is an element in the national savings balance. Notably, the government capital deficit increased only $12.1 billion from 1986 to 1996, and the marked improvement in federal and state finances was attributable to genuine progress in federal/state current spending deficit. 2 See Footnote 1.

Authored by Dr. Peter Morici, director of that the current account is simply the other count deficits are strongly influenced by the Center for International Business at the side of an immutable accounting identity— forces quite separate from U.S. fiscal policies University of Maryland and an adjunct sen- the difference between domestic savings and and domestic savings and investment behav- ior fellow at the Economic Strategy Insti- investment—and finds that is becoming in- ior. tute, the study examines the old chestnut creasingly clear that trade and current ac- November 5, 1997 CONGRESSIONAL RECORD — SENATE S11745 Morici argues that most economists over- cent of GDP. By these estimates, 1.6 percent Mr. MOYNIHAN. That hasn’t hap- look the fact the accounting identity can of GDP is being transferred through reduced pened yet. and does work in reverse. Increased foreign wages and payments to other factors. If a Mr. SARBANES. The real world may demand for U.S. securities, instigated by much more conservative estimate of the be ahead of the textbook writers. events independent of U.S. government poli- share of factor markets affected by trade is Mr. MOYNIHAN. That’s been known cies and business conditions, can powerfully applied, this estimate of income transferred to happen. influence the U.S. current account deficit become 0.6 percent of GDP, which is still a Mr. SARBANES. Yes, it has. and domestic economy. formidable figure. For example, in the 1990s, the Japanese, ‘‘These estimates,’’ Morici argues,’’ go a Mr. ROTH addressed the Chair. the Chinese, and other governments have long way toward explaining the fierce resist- The PRESIDING OFFICER. The Sen- dramatically increased their purchases of ance to continued globalization encountered ator from Delaware is recognized. U.S. government securities, propping up the from workers and firms whose present and Mr. ROTH. I ask unanimous consent value of the dollar against other currencies. prospective incomes have been adversely af- that the vote occur on or in relation to This has helped to sustain both their trade fected by this process.’’ the motion to proceed to S. 1269 at 4:20 surpluses and U.S. trade deficits, even as the Mr. SARBANES. It says: today, with Senator DORGAN or his des- United States has put its fiscal house in For years mainstream economists and eco- ignee in control of 40 minutes, and Sen- order. In most cases, he argues, these pur- nomic journalists explained away public con- ator ROTH or his designee in control of chases are not market-driven decisions made cern over the U.S. trade deficit by arguing the remaining time, with the 5 minutes in response to higher U.S. interest rates. the true cause of the deficit was the huge Rather they often reflect policy decisions to prior to the vote in control of Senator U.S. Federal budget deficit and, more re- block exchange rate adjustments, and reduce ROTH and the 5 minutes prior to Sen- cently, low U.S. savings. internal pressures on national governments ator ROTH’s time in control of Senator to revise protectionist trade polices and the Exactly the argument the Senator DORGAN. reliance on export-driven growth. from New York has just made. The PRESIDING OFFICER. Is there ‘‘Other things being equal, one would ex- However, a new study released today by objection? Without objection, it is so pect U.S. government budget balances and the Economic Strategy Institute refutes ordered. trade and current accounts to be cor- these traditional explanations and argues Mr. ROTH. I now yield 10 minutes to related,’’ Morici argues. ‘‘This is not the they are no longer adequate to explain what Senator CHAFEE. case, however, which reflects the strong in- is, in reality, a significantly more complex The PRESIDING OFFICER. The Sen- fluence of other, offsetting factors. Signifi- problem negatively affecting a wide variety cantly, these statistics do not imply that ator from Rhode Island is recognized. of economic statistics, including aggregate Mr. CHAFEE. Madam President, government deficits have little consequence demand, gross domestic product, the budget for U.S. external balances. Rather, they il- deficit, business-financed research and devel- thank you. I thank the chairman for lustrate that simple accounting identities do opment, wage rates, and exchange rates. yielding me this time. Madam President, some have argued not justify blind assertions of causality.’’ And then it goes on in effect to say To analyze how U.S. fiscal policies, the ac- that fast-track procedures are either that this traditional analysis is really tions of foreign governments, or abrupt unnecessary or that they are a threat simplistic; it doesn’t really answer the shifts in private investor sentiment may af- to Congress’ constitutional authority, situation. It is almost dismissive of fect trade current account deficits and the or both. domestic economy, Morici constructed a any trade deficit problem. In fact, if The answer to that is fast track is model of 1996 macroeconomics activity and you look at the movements here, there potential GDP for the study and analyzed none of the above. It is both necessary is not a direct correlation between the and constitutional. First of all, fast the trade and current account deficits may various factors the Senator talked instigate in markets for domestic goods and track is absolutely critical if the Unit- services, capital, and foreign exchange. He about. I mean you have a decline in the ed States is to continue to expand glob- found trade deficits impose costs on the U.S. goods trade balance here at the time al market opportunities for American economy in several ways: the trade deficit is still going up. manufacturers and service providers In the near term, trade deficits may reduce Mr. MOYNIHAN. We held tightly. and their workers. Without fast track, aggregate demand, and lower real GDP by re- Mr. SARBANES. I am sorry. You no President can assure our trading directing labor and capital away from export have an improvement in the trade defi- partners that the terms of a hard-won and import-competing activities, where cit when the deficit was going up. Then agreement will not be rewritten by these resources are generally more produc- here the deficit has been coming down, tive. Congress. That is the problem. Eliminating the trade deficit, through a the domestic deficit, yet the trade defi- Now, sometimes it is worthwhile to combination of reduced government deficits cit has been worsening. look at history. In 1934, Congress ap- Mr. MOYNIHAN. May I simply say to and foreign government purchases of U.S. se- proved the Reciprocal Trade Agree- my friend that I admit the complexity curities, would increase real GDP by $44 bil- ments Act, which gave the President lion or about 0.6 percent. of this matter. authority to lower tariffs with our Eliminating the trade deficit would in- Mr. SARBANES. Absolutely. crease business-financed R&D by an esti- Mr. MOYNIHAN. I do no more than trading partners. That worked fine for mated 3 percent. Production function studies argue what economists now believe, several decades. This was when we still indicate that the R&D-capital elasticity of that they may have to change their had an emerging global trading system output-per-hour in the private business sec- which primarily relied on tariffs. Be- tor is about 0.19. This implies that persistent mind. I don’t in any way contest. But I am just saying tomorrow when we have tween 1934 and 1945 the United States trades deficits have lowered the growth of concluded 29 bilateral agreements for labor productivity and potential real GDP in more time I wish to discuss this at the United States by about 0.5 to 0.6 percent- greater length. tariff reductions. When the GATT sys- age points per year. Trade deficits appear to Mr. SARBANES. Does the Senator tem came into being in 1948, the sys- be responsible for a significant share of the see any problem with running trade tem still worked. Tariff reductions slow down in the growth of U.S. productivity deficits? were the main focus of five successful and GDP in recent years. Mr. MOYNIHAN. There is no alter- negotiating rounds between 1947 and In addition to these dead-weight losses, native when you have a huge budget 1962. persistent trade deficits impose other, dis- But here comes the modern system. tributional consequences. The same forces deficit, sir. Mr. SARBANES. What do you do By the 1960’s, the world trading system that give rise to trade deficits also raise the had become much more sophisticated exchange rate for the dollar by about 7 per- when you don’t have a budget deficit cent. This lowers the prices received for ex- and you are still running large trade and so had trade barriers. In 1962, the ports and import-competing products, and deficits? Kennedy round began, and for the first lowers the wages and profits earned by work- Mr. MOYNIHAN. Then you better re- time the negotiations addressed not ers and firms in these industries. In turn, write your textbooks. just tariffs but nontariff problems such prices, wages, and profits are higher else- Mr. SARBANES. That’s what I think as antidumping measures. When the where in the domestic economy. needs to be done. negotiations concluded on the Kennedy Given an estimate of the share of the econ- round in 1967, the Johnson administra- omy whose wages and other factor prices are Mr. MOYNIHAN. That has not hap- substantially influenced by the prices of pened yet. tion brought the agreement back traded goods and services, the amount of in- Mr. SARBANES. That is why I want- home, but Congress promptly passed come redistributed may be estimated. In ed to submit that study for the legislation nullifying part of the Ken- 1996, exports plus imports were about 24 per- RECORD. nedy round agreement, effectively S11746 CONGRESSIONAL RECORD — SENATE November 5, 1997 amending the deal that had been so track does is it allows the President to Now, there is urgency to this. We are carefully worked out with the GATT carry out the negotiations but imposes seeing the southern nations of this nations. strict requirements for ongoing con- hemisphere—Brazil, Argentina, Para- The result. What happened? The Ken- sultations to ensure that Congress’ guay, Uruguay—mount an aggressive nedy round went into effect without voice is heard. effort to develop a free-trade region our participation. The message which Madam President, it has been my throughout the Western Hemisphere. that sent to our trading partners was privilege to have served on the Finance Chile, which is more than a little tired obvious. Hard-fought trade deals with Committee for 19 years now. When we of waiting for us, has completed sepa- the United States will not stick. And have a fast-track measure come up, rate trade agreements with Canada and the corollary lesson to the United there is constant consultation with Mexico as well as Colombia, Venezuela, States was equally clear. Before the that committee and other Senators on Ecuador, and they are reaching out to United States will be allowed back at the negotiations that are taking place Central America and Asia likewise. the negotiating table, it must restore that subsequently fast track will be Mexico has concluded agreements with its credibility by demonstrating its asked for. So the Israel, Canada, Mex- Colombia, Venezuela, and Costa Rica, ability to stick to a deal. ico, and Uruguay Round Agreements and are talking to the other nations in- Therefore, when the Tokyo round were guided by thousands, literally cluding the Caribbean nations. began, President Ford appealed to a thousands, of briefings and discussions The European and Asian nations are Democratic Congress for a solution. between the negotiators and Members getting in on this. Both the European The dilemma was noted that our nego- of Congress or their staffs. Congress Union and the Southeastern Asian na- tiators cannot expect to accomplish will continue to be consulted. So, in- tions are courting the South American the negotiating goals if there is no rea- deed, we do write the legislation to im- countries. Chinese and Japanese offi- sonable assurances that the negotiated plement these agreements, and Con- cials are eyeing the major Latin Amer- agreements would be voted up or down gress’ authority is not being constitu- ican nations. on their merits. So a set of procedures tionally revoked or the Constitution is The United States is in real danger of was developed, the so-called fast track. not being overridden. falling behind all of this. That has As has been noted here many times, Madam President, the fast-track ramifications for American workers that fast-track authority has been ex- partnership has guaranteed Congress’ and their families. tended to every President, Democrat or continued fulfillment of its constitu- One example that hits close to home Republican. It has been authorized or tional role in international negotia- for Rhode Islanders is Quaker Fabric reauthorized or extended four times, tions. Co., a Fall River, MA, textile firm em- and it is the means by which every Now, is every Member of Congress ploying 1,800 workers—many of them major trade agreement since the 1970’s going to be satisfied? No, apparently Rhode Islanders. Quaker recently lost a has been implemented. not, as we have heard this afternoon $1.8 million annual contract in Chile to In mid-1994, fast-track lapsed, and and yesterday. But will the partnership a Mexican competitor whose product is since then our trading partners, quite produce agreements that have taken exempt from Chile’s 11-percent tariff rightly, have questioned our ability to into account a broad variety of U.S. in- thanks to the Chile-Mexico trade pact. stick by a deal, and they have been re- terests and views? That is absolutely And Quaker was told by an Argentine luctant to deal with us. Some have true. buyer that he was switching to a Bra- cited the fact that the administration I would just briefly like to touch on zilian fabric supplier whose product, has concluded all but a handful of 222 what happens if we do not approve fast while of lesser quality, is not subject to trade agreements without fast track. track. That is the argument in the a 25-percent tariff. Quaker’s president ‘‘You don’t need fast track. Why, we Chamber here. Do not have it. I know tells me that if Quaker could just gain had 222 agreements without it.’’ that it is always prefaced by the oppo- equal footing in the region with its That is misleading. There are 200 plus nents saying, ‘‘I’m not against free Latin competitors, the company could agreements listed by the administra- trade,’’ and then they proceed to in- boost export sales and add 200 more tion as accomplishments, but look at veigh against fast track. jobs. the list. Most of the agreements tend The United States is the world’s larg- It is examples like these that have spurred the National Governors’ Asso- to be small, product-specific arrange- est trading nation, the largest exporter ciation and the U.S. Conference of ments like an agreement on ultra-high- and the largest importer. We are the Mayors—whose members are keenly in- temperature milk or the List of Prin- giant of the world trade area. We enjoy terested in economic growth—to ciples for Medical Devices. They are prosperity today in large part because strongly endorse fast track reauthor- certainly important, but they hardly of our trading activities. ization. qualify as major stimuli to our na- This is what Dr. Alan Greenspan said a week ago, on October 29: Opponents of fast track would have tional economy. one believe that there are other op- In contrast, the handful of agree- The quite marked expansion in trade has tions than fast track. That is not true. ments that require fast track are the really had a pronounced positive impact on rising living standards. Since 1992, exports If we want to play in the trade game, if critical, comprehensive, multisector have been responsible for one-third of our we want to make agreements with agreements that address both tariff economic growth. Trade now represents a trading partners, if we want to con- and nontariff barriers. solid 30 percent of our GDP, and our exports tinue to engage in the world of trade, Now, let’s get to this constitutional continue to rise. This export activity sup- we must have fast track. If not, we argument that has been tossed around. ports some 11.5 million well-paying jobs cannot enter into significant agree- across the Nation. Fast track represents, it is said, a sur- ments with our partners, and others render of Congress’ constitutional duty They certainly do in my State where will quickly move in to fill the vacu- under article I of our Constitution, we are very, very grateful for our trade um—and reap the jobs—we have left be- which says that ‘‘The Congress shall and where we believe the opportunities hind. have Power . . . To regulate Commerce for trade should increase. Our exports In sum, fast track is in the best in- with foreign Nations. . . .’’ from small Rhode Island hit $1 billion terests of the United States. It is a nec- Under fast track, Congress’ role in last year, with projections for this year essary prerequisite for negotiations; it trade negotiations has not been dimin- estimated at $1.2 billion. State officials is constitutional; and it is critical for ished or disregarded. Clearly it would in my State count on exports as a key economic and job growth in our nation. be impossible for 435 Representatives element in our economic growth and I urge my colleagues to support the or 100 Senators, all of whom believe are aiming to reach $2 billion in ex- pending legislation. they are qualified to be President—in- ports by the year 2000, which is only Mr. DORGAN. Madam President, I deed, I believe there has been a terrible what, 31⁄2 years from now. yield 10 minutes to Senator REED. overlooking that they are not chosen If we want to continue this prosper- Mr. REED. I thank the Senator for as President—each of these individuals ity, we must continue to advance trade yielding. could not carry out at the same time liberalization worldwide. In order to do The PRESIDING OFFICER. The Sen- our trade negotiations. Now, what fast this, we must have fast track. ator from Rhode Island is recognized. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11747 Mr. REED. Madam President, I am Mr. SARBANES. Will the Senator where the labor laws are so lax that here today to comment once again on yield on that point? there are incentives for companies to not only the fast-track agreement but Mr. REED. I will be happy to yield. move in. also the overall context of U.S. trad- Mr. SARBANES. Since 1974, our trade In Malaysia it was an explicit condi- ing. The discussion between the Sen- deficit on merchandise goods is $1.8 tion of the movement of many Amer- ator from Maryland and the Senator trillion. In just over 20 years, $1.8 tril- ican manufacturers into that country from New York pointed out the com- lion. Up until 1975 we had been running that Malaysia would not have, or en- plexity of looking at the trade deficit. modest surpluses every year in our force, strong labor laws. They would But there are some things that are merchandise trade deficit. So there has not give their workers the right to ben- quite clear despite the complexity. been a dramatic deterioration. efit from these new industries coming In 1980, we had a surplus of roughly Mr. REED. The Senator is quite cor- in and developing and selling success- $2.3 billion. By 1996—we have now a def- rect—reclaiming my time. It illus- fully in the world economy. icit of $165 billion. That is the time in trates his point, that there may be, in Is that wrong? It’s wrong for those which fast track has been operative. fact, countervailing foreign invest- workers, which is a concern. But what That is the time in which fast track ments in this country to make up for is more of a concern for me, it is wrong has been the centerpiece of our legisla- our budget deficits, but that does not for our workers because how can we ex- tive efforts, our international efforts to explain the phenomenon of losing con- pect to be competing against workers increase trade in the world. sistently and persistently the battle with new, modern technology based on This deficit right now is a result of for the sale of manufactured goods new capital investments, workers who many things. It is a result of, in some from our suppliers to other countries are as well skilled as ours may be, in a respects, our fast-track policy. But it around the world. world in which they are paid a fraction is a result also of our inability, I think, Mr. SARBANES. If the Senator will of what is the minimum wage here in to deal with some of the more basic is- yield further? To the extent there are the United States? sues in international trade, dealing such investments, those then become Then you can also look at the issue with some countries that utilize access claims which foreigners hold against of environmental quality, which is so to our market but at the same time us. So what has happened is we have important. It is not important in just a deny us access to their market. It is a gone from being a creditor nation in touchy-feely sense; we want to make phenomenon also caused by the pro- 1980, where we were a creditor nation sure there are forests and the streams liferation of multinational corpora- to the tune of $400 billion, to today are filled with fish, et cetera. It is real- tions that move their operations, in where we are a debtor nation to the ly a very practical sense. many cases, out of the United States tune of $1 trillion. So, because they sell When a group of multinational coun- because of our environmental laws, be- more to us than we sell to them, they tries now can go into Mexico, set up cause of our labor laws, because of build up claims against us and we be- new manufacturing plants and literally many stringent requirements that come a debtor. Now we are the biggest take all their effluent and just pour it raise and maintain the quality of life debtor nation in the world. into the local sewer—something they and the standard of living here in the Mr. REED. Again, the Senator is ab- could never do in their home country, United States. And they have gone to solutely correct. Frankly, to move to not in the United States, not in Eu- other countries. In fact, some of our an analogy which is a little more collo- rope—that is an advantage for them to policies have encouraged their depar- quial but perhaps just as compelling, if go there. We have to recognize that. We ture. we were managing a professional base- can’t be naive and sloganize here on One of the striking differences be- ball team and we lost every year for 10 the floor and say it’s just free trade, tween this fast-track bill today, 1997, or 15 years, I don’t think we would be and free trade. Free trade makes sense and the fast-track bill that was adopt- managing that baseball team. if there are the conditions for free ed in 1988, is that we have neglected to That is essentially, if you charge us trade: That there are, in fact, com- include within the principal negotiat- as managers of our international trade plementary monetary and fiscal poli- ing objectives attention to the rights policy, we have lost every year for the cies in each country; that there is, in of workers of our potential trading last several decades. The trade policy fact, respect for workers’ rights and partners. We have also neglected to in- has to be changed. Frankly, I don’t be- workers’ ability to organize. clude currency coordination, which is lieve anyone here is advocating that we One of the assumptions underlying an important aspect of ensuring that a could not use a good fast-track proce- free trade is that when workers are dis- free-trade system operates appro- dure. The argument is this is not a placed by imports in one sector of the priately and correctly. We have also good fast-track procedure; that we are economy, they move to a more effi- narrowed significantly the scope of neglecting several of the most critical cient job in another sector of the econ- concerns which we can address with re- items when it comes to realistic com- omy. And we know that is not the case. spect to the environment. petition between countries in the world It doesn’t happen. Maybe it will happen Regardless of our budget situation, today for international trade. We are in 50 or 100 years. But in the lives of we will have contributed to the further totally neglecting the differential be- Americans today, and their children’s deterioration, if this bill passes, of our tween our wage structure, particularly lives, that doesn’t happen. We see dis- trade position, because we have in- our manufacturing wage structure, and location. And we see dislocation that cluded increased incentives to deploy the wage structures overseas. We are can be avoided, at least minimized, if capital from the United States from neglecting it by simply saying that is we adopt strategies in this fast-track other parts of the world to developing not important to us, we don’t care if legislation that will direct the Presi- countries, which effectively will mean workers in Third World countries are dent to deal with these issues, to deal that they will be our competitors. making 2 or 3 cents an hour or 20 cents with them aggressively and to come I know, when the Senator from Mary- an hour, when our workers are making back to us with an agreement that does land and the Senator from New York $6 or $7 an hour or more. We don’t care talk about how we are going to raise were talking, they were talking about about that. the standard of living, through trade, the overall trade balance, making the We should care about that because, of individuals in our trading partners’ distinction between our trade balance frankly, that is one of the reasons why countries; of how we are going to deal and our Federal deficit. But I think if we have a huge trade deficit, particu- with environmental issues in those you just aggregate that trade balance, larly in manufactured goods. Because countries; how are we going to make you will see clearly that in terms of there are incentives now, huge incen- sure that currency valuations changes, manufactured goods we are consist- tives, to deploy capital from the United manipulations, don’t undercut all that ently losing. And that is the most pre- States into these countries so that we think we have gained at the bar- scient, tangible point with respect to they can set up manufacturing plants. gaining table. the arguments that, because of some of And we have seen it consistently. We The classic example of course is Mex- these trading rules, literally our good have seen it even deliberately, bla- ico. We went in and reduced signifi- manufacturing jobs are going overseas. tantly, in the sense of finding places cantly, we thought, the tariffs that the S11748 CONGRESSIONAL RECORD — SENATE November 5, 1997 Mexicans would charge us, the tariffs is any President of the United States cratic President, negotiates with coun- that we would charge them, thinking talking about workers’ rights, about tries who have similar standards of liv- that now our goods would move back environmental quality, and about a ing, similar environmental laws, I and forth freely. All of that was wiped strong stable currency coordination in don’t fear downward pressure on wages, out by a 40-percent reduction in the the world, if we pass this fast-track I don’t fear downward standards for the value of the peso; the purchasing power agreement. Because we basically told environment, I don’t fear downward of Mexican citizens who might want them we are not interested. What we standards on food safety, because when our goods. And to not be concerned are interested in here is promoting cap- we are dealing with countries who care about that, to not elevate that issue of ital deployment from the United States about what we pay, who have the same currency coordination to a major nego- into areas of the world that don’t treat values in terms of worker rights and tiating objective is absurd. It is par- workers properly, that don’t care about environmental rights, I feel com- ticularly absurd within the last 2 the environment, and may or may not fortable giving fast-track authority to weeks when all we have read about is manipulate their currency to maintain the President. the currency attacks in the Far East the advantage they have against the I have to say that in this case, I feel and Thailand, in all of these countries, United States. very uncomfortable about giving this leading to a shock wave on Wall Street. This is not an agreement that we authority. I have been trying to find The PRESIDING OFFICER. The Sen- should support. If we want fast track, out what is the minimum wage or the ator’s 10 minutes have expired. let’s get it right, let’s do it right. This wage paid for a manufacturing job in Mr. REED. I request an additional 3 is not the right way to go. Indonesia, in Malaysia which are coun- minutes. The PRESIDING OFFICER. The Sen- tries that, as members of APEC, may Mr. DORGAN. I yield an additional 3 ator’s additional time has expired. very well will be part of this authority. minutes to the Senator. Mr. DORGAN. Madam President, I I have not been able to find out the The PRESIDING OFFICER. The Sen- yield 10 minutes to the Senator from minimum wage or the average wage for ator from Rhode Island is recognized. California, Senator BOXER. manufacturing jobs is in those coun- Mr. REED. Let me just, in the re- The PRESIDING OFFICER. The Sen- tries. I am told that a statistical ab- maining 3 minutes, say that individ- ator from California is recognized for stract put out by the Department of uals, colleagues who come to the floor 10 minutes. Labor does not contain the average and just talk slogans about free trade Mrs. BOXER. Madam President, I hourly wage for manufacturing jobs in have not, I think, understood what is compliment my colleague, Senator those countries. I am also told that the going on. Why does Japan run a $47 bil- REED, for his very astute remarks. I Department of Labor’s statistical ab- lion a year surplus with the United thank the Senator from North Dakota stract does not contain the hourly States? Because they exclude our for putting together what I think is a manufacturing wage for Chile either. goods. Why does China run a multibil- very excellent presentation. He has Rather, someone at CRS extrapolated lion-dollar surplus with the United been carrying it through and I am from other available information to States? Because they exclude our proud to stand with him and the others come up with an approximate hourly goods; and because they manipulate who feel that we should not grant fast- wage in Chile of $2.32. This compares to their currency to reduce the wages, ef- track authority in this particular case. an approximate average hourly salary fectively, of their workers; because Madam President, as a student of ec- of $17.74 in the United States for manu- they are insensitive to environmental onomics, I learned that if you listen to facturing jobs. quality; because they claim, for cul- an economics debate you will find that So here we have colleagues willing to tural reasons, historical reasons, they people generally fall into categories. hand over authority to make agree- don’t have to abide by intellectual When it comes to trade, I believe ments with countries that we don’t property rules or anything else. there are three categories. First, it is even know what they pay their work- Those are the real issues that we face the free-trade-or-nothing category ers, let alone what their environmental concerning our ability to compete in where you can’t tell them anything laws are. the world economy. What does this leg- about the evils that could come. They It seems to me there has to be a bet- islation do about those things? Ignores don’t want to see the statistics about ter way. I was listening to Senator workers’ rights; ignores environmental what happens to the downward pres- BYRD’s speech, and when he said, ‘‘Why quality; and to a great degree it ig- sure on wages. They don’t want you to are we here?’’ I think that is a reason- nores currency coordination as major tell them even that there is any deg- able question, because if you read arti- negotiating objectives. In effect what radation to the environment. I call it cle I, section 8 of the Constitution, it we said is: Listen, we are going to give the see-no-evil category. They don’t grants Congress the sole power to regu- the President fast-track power to do want to know. late trade and commerce with foreign everything except what is most impor- Then there is another category which nations and to make all laws which are tant to be done. And that is our objec- is the no-trade-no-matter-what cat- necessary to carry out that power. tion. No one is here on the floor saying egory. I think those are the ones who Once in a while, we cede away our that we can withdraw from the world don’t want to hear any of the benefits power. As I said, there have been times trade economy or we should withdraw that can come from trade. Maybe they when I felt it was OK to do that. But in from the world trade economy. What are a little long run they say, or maybe this case, when you don’t even know we are saying is let’s negotiate agree- we need to work more closely to make who it is you are dealing with, what ments that will benefit all the citizens sure that the problems are resolved, they pay their people, what their envi- of this country; that will benefit work- but they don’t want to hear that. That ronmental laws are, it makes very lit- ing men and women throughout this is the hear-no-evil category. tle sense, and I think it puts our work- country; that will ensure that they Then there is this third category ers and our environment at great risk. have a fair opportunity to work and that I think a lot of my colleagues are The benefits of trade, under these cir- earn wages that are decent. And that is in, and I certainly put myself in that cumstances, will certainly not out- not going to happen under this agree- category. And that third category is weigh the disadvantages. ment. the fair-trade category, not the free- I represent the largest State in the What we have to do, I believe—and I trade-at-any-cost category, not the no- Union, along with Senator FEINSTEIN. I hope we can—is ensure that the nego- trade-no-matter-what category, but have watched the NAFTA. It was a tiating objectives are changed; that we the fair-trade category. close call for me on the NAFTA. I do provide the President with the di- I want you to know, Madam Presi- wound up saying no, because I believed rections, with the incentives, with the dent, I have voted for fast-track au- the same problems existed then: the authority to go out there and talk seri- thority several times. When it came to downward pressure on wages; the lack ously about all these issues. Frankly, Canada, when it came to Israel, when it of environmental laws. there was some discussion before that came to the GATT, I was there, be- I have to say that as you look at the our trading partners won’t take us seri- cause I felt when our administration, different analyses as to whether ously. What they won’t take seriously whoever it is, Republican or Demo- NAFTA has worked—did it do better or November 5, 1997 CONGRESSIONAL RECORD — SENATE S11749 not—as we have already heard today, a result of NAFTA has placed severe ety and Defenders of Wildlife called on Con- we went from a trade surplus of about stress on our southern border transpor- gress to reject fast-track trade bills cur- $5.4 billion with Mexico in 1992 to a tation infrastructure. According to the rently under consideration until they guar- trade deficit of more than $17 billion in California State World Trade Commis- antee that meaningful environmental safe- 1996. sion, the result has been bottlenecks guards become part of future international trade agreements. Increased trade. Who benefited? Ask and traffic jams at border crossings, the California wine industry, I say to safety hazards, and declining environ- Despite rhetoric to the contrary, neither of my friends. I represent the proudest mental quality in the areas around the the fast-track bills offered by the Senate Fi- nance or House Ways and Means Committees wine industry maybe in the world. ports of entry. Why don’t we do first satisfies the objectives for green trade nego- Those wines that are made in Califor- things first? Why don’t we bring these tiations recommended by the groups. One nia are world renowned. Yet United agreements to the Senate, to the key problem with these bills is that they es- States wine exports to Mexico have House, let us debate and, to my col- tablish new and stringent restrictions on the dropped by approximate one-third. league who says, ‘‘Well, every Senator President’s ability to negotiate environ- United States wines face a 20 percent wants to be President so it would be mental safeguards in future trade agree- tariff in Mexico. impossible because we are all so,’’ I as- ments. ‘‘Instead of merely including the However, coincident with NAFTA, sume he meant ‘‘egotists that we would word ‘environment’ in the fast-track propos- Mexico gave Chilean wines a tariff re- write it our way,’’ I say I know a few als as a way of appeasing our concerns, we duction from 20 percent to 8 percent Senators who don’t want to be Presi- urge Congress and the Administration to and guaranteed duty-free status within dent. As a matter of fact, most of them begin addressing strong environmental a year. But U.S. wines were subject to standards among our trading partners,’’ said don’t. Most of them want to be Sen- Barbara Bramble, Senior Director for Inter- a 10 year phase-out of the 20 percent ators. national Affairs at the National Wildlife tariff. Ambassador Kantor, who I be- I have seen this U.S. Senate work on Federation. lieve really wanted to make something chemical weapons treaties, all kinds of good happen, promised to negotiate, The environmental groups assert that nei- treaties that were difficult, and do you ther bill offers a comprehensive agenda for within 120 days of NAFTA coming into know what, Madam President? We did the environment in trade negotiations. They force, a reduction of Mexican tariffs on the job. That is what we are sent here both fail to insist that negotiators create a United States wines—it did not happen. to do, not to throw the ball over to the level playing field to ensure that trading In fact, Mexican tariffs on United Executive and say, ‘‘It’s yours, we partners compete fairly by enforcing envi- States wine and brandy are still at don’t care about wages, we don’t care ronmental laws. They provide no specific ob- their pre-NAFTA levels, as a result of about the environment, we’re just for jectives for improving the transparency of an unrelated dispute regarding corn trade at any cost.’’ I hope that we don’t the World Trade Organization (WTO). And brooms. take that course. they fail to ensure that environmental agen- cies like the Environmental Protection So as my kids used to say when they If you want to look at the jobs lost were younger, it is time to take a time Agency (EPA) are active participants in through NAFTA, the Department of trade policy negotiations. ‘‘We must find a out. Take a deep breath, see where we Labor certified that there were 116,418 stronger voice for the environment during are on the agreements we have already workers who notified them in April trade negotiations, which are now dominated signed that haven’t lived up to their 1997 that they would lose their jobs as purely by commercial interests,’’ said Dan promises. a result of NAFTA. There are esti- Beard, Vice-President for the National Audu- Sometimes when my colleagues—and mates that go as high as 400,000 job bon Society. I just heard one of them on the floor— losses. That is just job losses. What Also extremely troubling is the fact that talk about fast track, they get this en- about the downward pressure? What none of the bills explicitly exclude the so- ergy. It is almost an out-of-control en- about those who leave manufacturing called Multilateral Agreement on Invest- thusiasm. I think sometimes when you jobs and have to go to service-sector ment (MAI) from fast-track consideration. go on a fast track, you go too fast. jobs which pay less? That is the kind of The MAI would make it much easier for mul- What is the rush? Why not allow this disparity we see. tinational corporations to freely move cap- ital and production facilities without respon- Congress to do our work? I didn’t come I ask unanimous consent for 3 addi- here to exert downward pressure on sibility for environmental performance, and tional minutes. would create new litigation hooks for cor- workers’ wages. I came here to make Mr. DORGAN. I yield the Senator 3 porations to sue national governments over life better for the people of California. additional minutes. environmental standards. Already under I didn’t come here to see our environ- Mrs. BOXER. I thank my colleague NAFTA, the U.S.-based Ethyl Corporation mental laws degraded, yet we have al- for the additional time. has filed a $251 million lawsuit against Can- ready seen examples of trade policy So when we look at the issue of ada because the Parliament banned the im- pressuring the United States to lower trade, there are some who say the most port and interprovincial transport of a toxic its environmental protections. Look at important thing is the efficient flow of gasoline additive. ‘‘We must ensure that what recently happened with our dol- capital. Capital will flow to the low- international trade pressures such as the MAI and NAFTA do not accelerate the ‘race phin protection laws. A trade deal with wage countries, and that is the only to the bottom’ for investments in poorer Mexico prevailed over our law and re- thing we should be concerned about. areas of the globe,’’ said William Snape, sulted in our law being weakened. In But it seems to me in the United Legal Director for Defenders of Wildlife. 1999, the definition of our beloved ‘‘dol- States of America, going into the next phin safe’’ label could change because Strong economies and clean environments century, we have to value not only the are two sides of the same coin, assert the of trade pressures—not because we love flow of capital, which I believe ulti- three conservation groups. ‘‘Our vital na- dolphins any less. They just take a mately will flow to the most efficient tional interests are best served when trade back seat. place, but we have to value the work- negotiators bring home agreements that si- We saw shipments of poisoned berries ers, we have to value the environment multaneously strengthen our economy and come into our country. If we had and we have to value our quality of protect our environment’’ said John Audley, enough inspectors there would prob- life. Trade and Environment Program Coordina- ably be a better chance that these situ- I ask unanimous consent that these tor for National Wildlife Federation. ‘‘The ations would not occur. Time out, documents from environmental organi- fast-track bills offered by Congress fail this test and we must accordingly reject them.’’ folks, before we see that kind of situa- zations be printed in the RECORD. tion expand. Sure, there will be more There being no objection, the mate- The National Wildlife Federation is the na- trade. But is that the kind of trade we rial was ordered to be printed in the tion’s largest conservation group, with over 4 million members and supporters across the want, where we have to recall berries RECORD, as follows: because we don’t have enough inspec- United States. The National Audubon Soci- [News Release From National Wildlife ety, with approximately 600,000 members na- tors? Federation, Oct. 8, 1997] tionwide, is dedicated to protecting birds, I invite my colleagues to go down to ENVIRONMENTALISTS UNIFIED ON FAST TRACK: wildlife and their habitat. Defenders of Wild- the San Diego border. The border infra- CHANGE IT OR REJECT IT life has over 200,000 members and supporters, structure is inadequate for the amount WASHINGTON, DC.—Today, the National and seeks to protect all native plants and of trade. The new trade with Mexico as Wildlife Federation, National Audubon Soci- animals in their natural habitats. S11750 CONGRESSIONAL RECORD — SENATE November 5, 1997 LEAGUE OF CONSERVATION VOTERS, much as we value the free flow of cap- As a nation, the continued growth of Washington, DC, November 4, 1997. ital? our economy depends on trade. In the U.S. House of Representatives, We have to say, do we value our safe past 50 years, trade share of the world’s Washington, DC. food supply as much as we value the gross domestic product grew from 7 Re: H.R. 2621, the Reciprocal Trade Agree- percent to 21 percent. Today, trade ment Authorities Act of 1997—Oppose free flow of capital? And do we feel Anti-Environmental Fast Track Trade that it is important to have an ade- makes up 24 percent of the U.S. econ- Negotiating Authority quate infrastructure in place of inspec- omy. DEAR REPRESENTATIVE: The League of Con- tors at the border to make sure the This decade, export growth has cre- servation Voters is the bipartisan, political food supply is safe, to make sure that ated 23 percent of all new U.S. jobs, and arm of the national environmental move- our products are being treated fairly? those export-related jobs pay 13 per- ment. Each year, LCV publishes the National And should we even care about a posi- cent more than the national average. Environmental Scorecard, which details the tive trade balance? Sure, you open up Clearly, our economy will suffer voting records of Members of Congress on en- without the ability to continue to ne- vironmental legislation. The Scorecard is the doors, but what has happened to us, as my colleagues brilliantly pointed gotiate timely new agreements to fur- distributed to LCV members, concerned vot- ther open foreign markets to U.S. ers nationwide and the press. out, is the balance of trade has flipped, and where we used to be predominant goods, commodities and services. This week, the House is likely to vote on Those opposed to renewing the Presi- H.R. 2621, the Reciprocal Trade Agreement and we sent more exports than we took dent’s fast-track authority argue that Authorities Act of 1997. The bill establishes in imports, we see a reverse. We now new and stringent restrictions on the Presi- the lack of such authority does nothing have negative numbers. to hinder the President’s ability to ne- dent’s ability to negotiate environmental So I believe, again, in summing up, gotiate new trade agreements. Unfortu- safeguards in future trade agreements. This that we do have three choices: Free legislation does not satisfy the objectives for nately, this is not the case. green trade negotiations recommended by trade at any cost; see no evil; don’t tell No nation will enter into a major national environmental organizations. In me about the problems; no trade at any new trade negotiation with the United particular, H.R. 2621: cost; don’t tell me about the good parts States if the product of those negotia- fails to require that trade rules do not un- of trade; and the middle course that tions can be picked apart in the U.S. dermine legitimate environmental, health, my colleagues are taking, which is fair Congress. With any agreement that can and safety standards; trade. Yes, trade is crucial, it is impor- later be unilaterally changed or fails to insist that our trading partners en- tant. We are part of one world, but we amended by the Congress, we run the force strong environmental laws in order to in the U.S. Senate who care about val- establish a high, level playing field as a basis risk of having no agreement at all. for international economic competition; ues and American jobs and an Amer- As long as the President lacks the fails to mandate increased opportunities ican environment, who care about ability to present such agreements to for public participation in World Trade Orga- clean and safe food, who want food the Congress for our clean approval or nization deliberations and dispute resolution safety laws in place, also want to have disapproval—and bad agreements de- that might affect environmental, health, and an opportunity to alter or amend trade serve to be defeated—our Nation will safety safeguards; agreements as we deem appropriate be endangering its ability to compete fails to ensure that US government agen- and necessary. in today’s competitive global economy. cies with responsibilities for environmental Thank you very much. Our Nation should be working ag- protection, resource conservation, and public gressively to reach new agreements health and safety are active participants in The PRESIDING OFFICER (Mr. AL- trade negotiations which could effect policy LARD). The Senator’s additional time that will expand free trade and open up matters under their authority; has expired. the emerging economies of Asia, Latin does not explicitly exclude the Multilat- Mr. HAGEL addressed the Chair. America, Eastern Europe to American eral Agreement on Investment (MAI) from The PRESIDING OFFICER. The Sen- exports. We should be building on the fast-track consideration, an agreement that ator from Nebraska is recognized. major achievements of the last global would allow investors to sue for compensa- Mr. HAGEL. Mr. President, thank trade talks. These talks, the Uruguay tion before international tribunals if pollu- you. I yield myself 41⁄2 minutes. round of the General Agreement on tion laws are alleged to reduce their prop- The PRESIDING OFFICER. The Sen- Tariffs and Trade, for the first time, es- erty values; ator is recognized for 41⁄2 minutes. tablished rules for services and agri- fails to provide for environmental assess- culture goods, two areas where the ments of trade agreements early enough in Mr. HAGEL. Mr. President, today the negotiations to influence the outcome of United States is unilaterally disarmed United States leads the world in global those negotiations and in the intense global competition for competitiveness. does not provide Congress sufficient lever- new markets. For the first time since Instead, the United States is losing age to ensure that trade agreements serve 1974, the President lacks fast-track au- opportunities for economic growth and the broad public interest. thority to negotiate agreements that job creation. It is time to do what is LCV’s Political Advisory Committee will would help open up new markets and right for American workers, farmers, consider including votes on H.R. 2621, The reduce international barriers to U.S. ranchers, and businesses. It is time to Reciprocal Trade Agreement Authorities Act exports. restore fast-track negotiating author- of 1997, in computing LCV’s 1997 Scorecard. ity for the President. Thank you for consideration of this issue. If This failure means slower economic growth, lost markets overseas, and I hope that my colleagues take a you need more information, please call Betsy good look at this and do support fast- Loyless in my office at 202/785/8683. fewer opportunities for high-paying Sincerely, jobs. Fast-track authority allows the track authority for the President. Mr. President, I yield the floor. DEB CALLAHAN, President to submit to Congress a President. Mr. DORGAN addressed the Chair. clean vote on trade agreements nego- The PRESIDING OFFICER. The Sen- Mrs. BOXER. Madam President, you tiated with other countries. ator from North Dakota. will find a huge number opposing this Under our Constitution, the Congress Mr. DORGAN. Could the Chair in- fast-track legislation. The National alone has the power to ‘‘lay and collect form me of the circumstances with Wildlife Federation basically says that . . . Duties’’ and ‘‘To regulate Com- time remaining? they are against it for one reason. merce with foreign Nations. . .’’ The PRESIDING OFFICER. The Sen- They have no assurances that the Envi- The Constitution, however, uniquely ator from North Dakota controls the ronmental Protection Agency of Amer- empowers the President to send and re- time from now until 4:15; and then at ica will be active participants in the ceive ambassadors and negotiate with 4:15, the Senator from Delaware will trade negotiations. There are many foreign powers. Over 20 years ago, the control the last 5 minutes. other organizations which I don’t have fast-track mechanism was created to Mr. DORGAN. Mr. President, let me the time to name at this point. accommodate this divided authority. then use the remainder of my time and We have to make a choice. We have Renewal of fast-track authority will begin by quoting from a letter written to decide, if we value our workers as enable our Nation to continue pressing by Mr. Kevin Kearns, the president of much as we value the free flow of cap- for world economic systems based on the United States Business and Indus- ital, we have to ask ourselves, do we free markets, free trade and free peo- trial Council. I ask unanimous consent value clean air and clean water as ple. that it be printed in the RECORD. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11751 There being no objection, the mate- firms comprised only 4 percent of total ex- USBIC’s [the Business and Industrial Coun- rial was ordered to be printed in the porters. And fully 11 percent of U.S. exports cil] members and their counterparts don’t were generated by just four individual com- have plush Washington offices. RECORD, as follows: panies. He is pointing out the large number UNITED STATES BUSINESS AND Yet despite this domination of trade flows of CEOs who have flown into Washing- INDUSTRIAL COUNCIL, by the big multinationals, these firms have Washington, DC, November 5, 1997. not created a single net new American job in ton to lobby on behalf of fast track. He Hon. BYRON L. DORGAN, some 25 years. Another way of looking at job said: U.S. Senate, creation is this: all the net new employment [Our businesses] don’t have plush Washing- Washington, DC. in the U.S. economy in recent years has been ton offices. They do not maintain large pub- DEAR SENATOR DORGAN: I understand that created by companies with fewer than 100 lic relations staffs. They can’t hire expensive Members of Congress will be lobbied inten- employees—the overwhelming majority of lobbyists, and they’re too busy running their sively over the next several days by Chief which do not export at all. Although fast companies to jet in and out of the nation’s Executive Officers of major multinational track proponents tout the job-creating bene- capital themselves, like the corporate elite. corporations belonging to The Business fits of international trade, those jobs on a All these owner-operators do is try to turn a Roundtable as part of their campaign to pass net basis are not being created in the United profit, support their families, create jobs, the fast track trade bill. States. and help sustain [their] local communities I am writing to emphasize to you and to USBIC’s members and their counterparts they have been a part of for generations. In other Members of Congress that these com- don’t have plush Washington offices. They do opposing fast track, they are acting first not panies do not speak for the entire American not maintain large public relations staffs. as business interests but as citizens dis- business community. Far from it. In fact, They can’t hire expensive lobbyists, and mayed at the nationwide cost of 25 years of they represent only the tiny handful of giant they’re too busy running their companies to falling living standards and rapidly growing multinational firms that have monopolized jet in and out of the nation’s capital them- income inequality. They are well aware that the benefits of current trade policy, and that selves, like the corporate elite. All these these latter two facts of modern American now seek to further extend their advantages owner-operators do is try to turn a profit, life cannot promote a stable business envi- at the expense of smaller American compa- support their families, create jobs, and help ronment or a stable country over the longer nies and their employees. Over the last two sustain the local communities they have run. decades these large multinational companies been a part of for generations. In opposing Mr. President, this has been a rather fast track, they are acting first not as busi- have done much more to send good jobs and interesting discussion. I listened to valuable technologies overseas than to cre- ness interests but as citizens dismayed at the nationwide cost of 25 years of falling liv- much of the debate with great interest. ate them here at home. As I mentioned, there have been a In fact—and I find this quite ironic—many ing standards and rapidly growing income in- of these large multinationals no longer con- equality. They are well aware that these lat- number of, I think, good presentations sider themselves American corporations. ter two facts of modern American life cannot today. I do say that there are dif- promote a stable business environment or a Their CEOs make this point openly and ferences of opinion that are very sub- stable country over the longer run. stantial. proudly. One therefore wonders what busi- These businessmen understand that the na- ness they have lobbying the U.S. Congress at tion urgently needs a new trade and inter- There are some who think that the all, since they are apparently not American national economic strategy that lifts in- current trade strategy is just fine, and corporate citizens but citizens of the world. comes, strengthens families and commu- that it works very smartly. They think Perhaps they should be up in New York lob- nities, allows entrepreneurs to make a profit it is a wonderful thing for our country, bying the United Nations rather than in here at home, and ensures America’s future and we just need to do more of it. That Washington lobbying the U.S. Congress. In prosperity. They strongly oppose fast track fact, the first question Members of Congress is the group that says, ‘‘Let us pass renewal, and hope that members of Congress fast track. If we don’t, somehow Amer- should ask them during their lobbying visits will distinguish the special interests of the is, ‘‘Do you represent an American com- multinational corporations from this over- ica is headed for trouble. But things pany?’’ riding national interest. are going fine. We like the way things I can assure you that the 1,500 members of Please feel free to have Members or their are. Our trade policy works. Let’s con- the U.S. Business and Industrial Council are staffs contact us directly for the small and tinue it.’’ American-owned and managed companies. mid-size business point of view on fast track. Others of us think that swollen and They typify the vast majority of American We will be pleased to try to answer any ques- bloated trade deficits, that reach businesses that have been impacted nega- tions promptly and forthrightly. record levels year after year, are head- tively by U.S. trade policy. Since they are Sincerely, ing this country toward trouble. run day in and day out by their owners, EVIN EARNS K L. K , General Custer, incidentally, lived many are not large enough to, nor are they President. for 2 years near Bismarck, ND, before interested in, moving the bulk of their man- Mr. DORGAN. Mr. President, let me ufacturing overseas. They are interested, he left for what is now Montana to quote from this letter. I will not read it meet Sitting Bull and Chief Crazy however, in preserving the American manu- all, but, Mr. Kearns, who heads an or- facturing base and in creating additional Horse. And because I am from North ganization called the United States wealth for themselves, their employees, and Dakota, we know a great deal about Business and Industrial Council says: their communities here in the United States. the history of that campaign. Some have been victimized by predatory I can assure you that the 1,500 members of We know by reading the book, ‘‘Son foreign trade practices such as dumping and the U.S. Business and Industrial Council are of Morning Star,’’ for example, that American-owned and managed companies. subsidization—and by the U.S. Government’s General Custer sent his scouts ahead to neglect of their problems. Still others find They typify the vast majority of American themselves under pressure to cut wages and businesses that have been impacted nega- try to figure out what was ahead of benefits in response to the slave-labor wage tively by U.S. trade policy. Since they are him. And the scouts really reported, rates or adversarial practices of foreign com- run day in and day out by their owners, ‘‘Gee, things look pretty good. Things petitors. Many that are engaged in inter- many are not large enough to, nor are they are going pretty well here. Things look national trade have been pressured by for- interested in, moving the bulk of their man- pretty good around the next hill or the eign governments to source abroad or to ufacturing overseas. They are interested, next bend.’’ transfer key technologies as the price of however, in preserving the American manu- Of course, we now know from histori- doing business in that foreign country. facturing base and in creating additional wealth for themselves, their employees, and cal accounts things really did not go But most important, they have been hurt— very well for General Custer and the as have most of our citizens—by years of their communities here in the United States. poorly run trade policies that have given us Some have been victimized by predatory 7th Cavalry. I find today an interesting massive, growing trade deficits year after foreign trade practices such as dumping and group of colleagues who might well year. These deficits, in turn, cut the U.S. subsidization—and by the U.S. Government’s qualify for that scouting assignment. economic growth rate significantly—by as neglect of these problems. Still others find ‘‘Things are going pretty good. The much as 2 percentage points in recent years. themselves under pressure to cut wages and road up ahead looks pretty bright. If benefits in response to the slave-labor wage The Census Bureau’s latest figures show we just keep doing what we’re doing, dramatically just how few American compa- rates or adversarial practices of foreign com- petitors. Many that are engaged in inter- our country is going to be just fine.’’ nies have profited from recent trade agree- I have observed, during other discus- ments. At last count, only 6 percent of the national trade have been pressured by for- nation’s 690,000 manufacturers exported at eign governments to source abroad or to sions, especially in fiscal policy, people all, and the percentages are much lower for transfer key technologies as the price of came to the floor of the Senate and service companies. Large companies—with doing business in that foreign country. said, ‘‘Let’s run things like you would 500 or more workers—accounted for fully 71 And then he goes on in his letter. Let run a business.’’ I would ask my col- percent of export value, even though these me read the conclusion: leagues this: After hours and hours of S11752 CONGRESSIONAL RECORD — SENATE November 5, 1997 debate about trade, is there anyone seem to me to be in this country’s best We have a lot of folks around here here who would stand up and tell me, if interests to say to those countries, sitting with those metal handles be- you ran a business the way this coun- which expect a balance in trade that is cause someone claimed that this trade try runs its trade policy that you a fair balance, ‘‘You cannot run $50 bil- strategy we have works. All the evi- would be doing fine? Wouldn’t every- lion, $60 billion a year, every year, in dence suggests it does not. body in this Chamber understand and trade deficits with us.’’ One of these days, one way or an- agree that if you ran a business the Now, they will continue to do it as other, we ought to take a look at the way this country is running its trade long as we allow them. You can only evidence and decide when something policy, you would be broke? expect that someplace in these other doesn’t work you ought to change it. How many CEO’s would go to their countries those folks are sitting The first law of holes is that when boardrooms and say, ‘‘Listen, I would around saying, ‘‘We don’t understand you are in a hole, you might want to like to have a talk with you. I want to why they let us keep doing this, but stop the digging. When you see trade talk about our receipts. I want to talk it’s a wonderful thing. It strengthens deficit after trade deficit, year after about all the sales we have and all the us and weakens them.’’ They would say year, that reaches record levels—and money that is coming in.’’ And the that I presume. Because when they this year the merchandise trade deficit board says, ‘‘Well, that’s fine, Mr. CEO have big surpluses with us, we become will be very close to $200 billion—it is or Mrs. CEO, but could you tell us a lit- a cash cow for their hard currency fair for us to ask on the floor of the tle about your expenditures?’’ needs and it weakens our country. Senate, does this trade policy work? Is The CEO knows the expenditures far They must surely be puzzled why no this trade policy in the best interests exceed the receipts, but the CEO says, one in this country has the nerve and of this country? Or can we, with more ‘‘No, no, we’re not going to talk about the will to say, ‘‘Stop it. We won’t nerve, will, and courage, stand up for expenditures. Are you crazy? We’re allow that. We won’t allow these huge the economic interests of this country going to talk about receipts. We’re trade imbalances. We expect and de- and demand and expect more of our going to talk about how well I’m mand, not only reciprocal trading op- trading partners, more in the manner doing.’’ portunities with you, open markets of policies that will benefit and That is the message we have been from you, but we demand some reason- strengthen this country? hearing out here on the floor of the able balance of trade.’’ Mr. President, I have consumed my Senate for hours. ‘‘Gee, look how well Now, we were told just a few minutes time. The Senator from Delaware and we’re doing. Look at these exports. ago that the reason we had a trade def- the Senator from New York have both Look at these exports, sales.’’ They are icit is because we had a budget deficit. been courteous during this discussion. ignoring, of course, the massive quan- Simple, except that does not work. Our And we have had the opportunity to tity of imports coming in, displacing budget deficit is going way down, and have a lengthy and, I think, good de- American manufacturing capacity in our trade deficit is going way up. I bate. And more will follow. We will this country, and putting us in a swol- know that is what they used to teach have a vote on the motion to proceed, len and mushrooming trade deficit sit- in economics. I used to teach econom- at which point, if that prevails, we will uation, that if judged as a business ics. As I said this morning, I overcame be on the bill itself. And those of us would render us unable to continue. that experience. who care a great deal about this will And yet we have people say, ‘‘Gee, this But as the budget deficit has been be, at that point, allowed to continue. is going just fine. This is just the right going way down; the trade deficit is Mr. President, I yield the floor. road for us.’’ going way up. So how does it work then Mr. ROTH. Mr. President, at the out- It is not the right road for us. The with those who have been claiming now set of this debate I set out my reasons right road isn’t protectionism. The for years that we simply have a trade for supporting fast-track authority. right road isn’t to put walls around our deficit as a matter of calculation be- Having heard the debate and the point country. The right road isn’t to retreat cause we have had a fiscal policy defi- made by my esteemed colleagues, I from the global economy. cit? want to distill what, I believe today, But the right road is to insist in this Stephen Goldfeld once said that, ‘‘An our vote is about. country that we have some courage to economist is someone who sees some- First, I submit that the question be- stand up and tell, yes, the Japanese thing working in practice and then fore this body is whether we will shape and the Chinese and the Mexicans and asks whether it can work in theory.’’ our own economic future or leave our the Canadians, and so many others, Can we fail to observe here that the fate in the hands of others. We must that we expect and demand more of budget deficits are going down, way decide whether we will allow the Presi- you. We expect fair trade. down. They are down 5 years in a row, dent to take a seat at the negotiating Is there someone in this Chamber but the trade deficit is going up? Can table or force him to stand outside the who wants to stand up and tell us they we fail to notice that or fail to explain room while others write the rules for are opposed to fair trade? Does that it? Or do we simply cling to the same the international economy. person exist? Is there someone willing tired economic doctrine about trade A vote for fast track is a vote for a to do that? Who here is opposed to fair that has been proven wrong? brighter American future. Toward that trade? Maybe I need to ask it when When I was a young boy, I had a end, this bill arms the President with more Members are present in the neighbor who was a retired person. His the authority to open foreign markets Chamber. But is there someone who name was Herman. And Herman used and allow our firms to do what they do will say, ‘‘No. Me, I’m opposed to fair to order everything through the mail better than anywhere else on Earth: trade.’’ I don’t think so. I don’t think that he could get that promised him That is, compete. there is one person in this Chamber one thing or another. Now Herman had Second, the making of trade policy who will volunteer to say, on behalf of rheumatism. And I went over to Her- must be a full partnership between their constituents, they oppose fair man’s one day, and he was sitting there Congress and the President. The bill trade. with a box that was plugged into the before this House ensures that Con- Why then do they insist that those of wall with a cord. It was a wooden box gress is, in fact, a full partner in the us who believe that we ought to expect with some wires leading to two metal process. Indeed, it is difficult to con- fair trade in our trade relationships, handles. And he explained that he had cede of any other measure where we why do they insist that somehow we purchased this from a catalog because subject the President’s action to such don’t act in the best interests of this it was supposed to cure his rheu- scrutiny and constraints. The bill re- country and in the best interests of matism. He was sitting in his chair quires the President to notify us in ad- this country’s future economy? I do there holding on to these handles. He vance of his intent to make use of this not understand that. held on to them for 6 or 8 months, I authority. He must then consult prior With respect to whether it would be guess. It did nothing to help him with to and throughout the negotiations up Japan or China, or many other trading his rheumatism, but that was a box he to and including comprehensive con- partners, who are worthy partners and bought because that he thought it sultations immediately before initial- good trading partners of ours, it would would deal with his rheumatism. ing an agreement. If the agreement is November 5, 1997 CONGRESSIONAL RECORD — SENATE S11753 signed, we then proceed to develop the The PRESIDING OFFICER. Are there who serve as Presiding Officers of the implementing legislation in consulta- any other Senators in the Chamber de- Senate for 100 hours in a single session tion with the President. siring to vote? of Congress. Today, we add to the list After all that, Congress still exer- The result was announced—yeas 68, of Golden Gavel recipients Senator AL- cises a veto over the President’s action nays 31, as follows: LARD of Colorado, whose presiding by voting on the agreement and imple- [Rollcall Vote No. 294 Leg.] hours total 100 hours today. menting bill. Those conditions are nec- YEAS—68 November 5 is a very significant date essary to ensure the President fulfills for Senator ALLARD and his family, as Abraham Dodd Lautenberg the objectives set by Congress. They Akaka Domenici Leahy on November 5, 1996, 1 year ago today, are also needed to ensure that Congress Allard Frist Lieberman Senator ALLARD was elected to the and the President do, in fact, speak Ashcroft Glenn Lott U.S. Senate. Therefore, it is an appro- with one voice on trade matters. Baucus Gorton Lugar priate date to recognize his contribu- I firmly believe that bill strengthens Bennett Graham Mack Biden Gramm McCain tions as a Presiding Officer of the Sen- the role of Congress and the trade Bingaman Grams McConnell ate. agreements process to an unprece- Bond Grassley Moynihan With respect to presiding, Senator dented extent and lets our trading Breaux Gregg Murkowski ALLARD has been extremely generous partners know that the President is an- Brownback Hagel Murray Bryan Hatch Nickles with his time and has often rearranged swerable to Congress for any agree- Bumpers Hutchinson Robb his schedule at a moment’s notice— ment he may reach. Chafee Hutchison Roberts and, I might add, with the assistance of Third, laying the foundation for our Cleland Inouye Rockefeller his very courteous staff—to assist in economic future will require a partner- Coats Jeffords Roth Cochran Johnson Santorum presiding when difficulties arise. As a ship here in Congress, as well. We will Collins Kempthorne Smith (OR) Presiding Officer, his dedication and not make progress toward our common Coverdell Kerrey Thomas dependability are to be commended. It Craig Kerry Thompson goal of providing for America’s eco- is a great pleasure to announce Sen- nomic future without strong bipartisan D’Amato Kohl Warner Daschle Kyl Wyden ator WAYNE ALLARD of Colorado as re- support for our trade policy. DeWine Landrieu cipient of the Senate’s Golden Gavel I was extremely heartened by the NAYS—31 Award. vote yesterday and expect to see the My compliments to my friend, my same bipartisan support for the motion Boxer Ford Sarbanes colleague, and the Presiding Officer. under consideration and for the bill it- Burns Harkin Sessions Byrd Helms Shelby The PRESIDING OFFICER. Thank self. At the same time, the debate iden- Campbell Hollings Smith (NH) you. tified important issues that must be Conrad Inhofe Snowe (Applause, Senators rising.) fully examined in order to sustain that Dorgan Kennedy Specter Durbin Levin Thurmond f bipartisan future. Enzi Mikulski Torricelli As chairman of the Finance Commit- Faircloth Moseley-Braun Wellstone ORDER OF PROCEDURE tee, I intend to ensure that the com- Feingold Reed Mr. NICKLES. Mr. President, for the mittee addresses those issues of criti- Feinstein Reid information of all Senators, we will cal importance to the well-being of NOT VOTING—1 now have a period of morning business every American. I look forward to Stevens until the hour of 6 p.m. with Senators working with my colleagues toward to be allowed to speak for up to 10 min- this end. Nonetheless, I believe we The motion was agreed to. Mr. NICKLES addressed the Chair. utes each. must take the first step now to exert Mr. DORGAN. Will the Senator yield the leadership on trade that only the The PRESIDING OFFICER. The Sen- ator from Oklahoma. for a question? United States can provide. The Presi- Mr. NICKLES. Yes. Mr. NICKLES. Mr. President, I move dent must have fast-track negotiating Mr. DORGAN. Mr. President, I won- to reconsider the vote by which the authority. I urge my colleagues strong- der if the Senator from Oklahoma motion was agreed to. ly to support the motion to proceed. could inform us of the unanimous-con- Mr. ROTH. I move to lay that motion Mr. MOYNIHAN. Mr. President, I rise sent request that affects business on on the table. simply to affirm in the strongest terms the floor of the Senate tomorrow. My The motion to lay on the table was that the chairman of the Senate Fi- understanding is the pending unani- agreed to. nance Committee has been faithful to mous consent request deals with the Mr. NICKLES. Mr. President, first, I his duties. He has kept a committee DOD authorization bill. The reason I wish to compliment Senator ROTH and united, minus one vote, in an otherwise ask the question is I am interested in Senator MOYNIHAN for their leadership unanimous decision. He has been me- learning when we will come back to the on this very important issue on fast ticulous in his concern that American regular order, which will be the fast- track. workers will have their interests pur- track consideration of the fast-track I will announce—I think it has been sued here, the environment will be proposal. looked after, but ladening these mat- disclosed to both sides—that will be Mr. NICKLES. To respond to my col- ters on trade negotiations will only en- the last rollcall vote today. league, the Senate has already agreed sure they will fail and not bring the f to a unanimous-consent request that benefits we desire. MORNING BUSINESS would call for the DOD authorization I want to congratulate him. We can- bill to be voted on tomorrow at some not do any better than we did yester- Mr. NICKLES. Mr. President, I ask time, at 2 p.m. I think the order calls day, but let’s hope we do as well. unanimous consent that there now be a for 4 hours of debate. We will go on it Mr. ROTH. I ask for the yeas and period of morning business until the nays. at 10, and vote at 2. hour of 6 p.m. with Senators permitted That is on the DOD conference re- The PRESIDING OFFICER. Is there a to speak for up to 10 minutes each, sufficient second? There is a sufficient port. with Senator GORTON permitted to Beyond that, I am not prepared to second. speak for 15 minutes. tell my colleague what—I know the The yeas and nays were ordered. The PRESIDING OFFICER. Without The PRESIDING OFFICER. The House is planning on voting on the objection, it is so ordered. question is on the motion to proceed to fast-track authorization on Friday. S. 1269, the Reciprocal Trade Agree- f There is some discussion that since ments Act of 1997. that is a House bill and we are working SENATOR WAYNE ALLARD: RECIPI- on the Senate bill, we might entertain The yeas and nays have been ordered. ENT OF THE GOLDEN GAVEL The clerk will call the roll. taking up the House bill when it passes AWARD The legislative clerk called the roll. so we wouldn’t be working on two dif- Mr. NICKLES. I announce that the Mr. NICKLES. Mr. President, it is a ferent bills. Senator from Alaska [Mr. STEVENS] is longstanding tradition in the Senate to Mr. DORGAN. If the Senator will necessary absent. recognize and honor those Senators yield further, my understanding is the S11754 CONGRESSIONAL RECORD — SENATE November 5, 1997 motion to proceed prevailed by the track. I know that we wish to pass fast After Mr. Lee was nominated, I met most recent vote, and the result is now track. We also wish to pass Amtrak re- with him and made clear that I had an the regular order of the Senate would form and we also wish to pass all the open mind regarding his nomination. I be the fast-track legislation. The Sen- appropriations bills, and we only have told him that his positions on the is- ator asked unanimous consent to go to a couple of days. So we are going to try sues would be critical, and that the morning business. I didn’t object to to accommodate everybody’s requests. committee was eager to hear his an- that. We also have a unanimous con- But the highest priority I believe will swers to questions. sent for tomorrow’s proceedings deal- be to pass the appropriations con- Before the hearing, some expressed ing with DOD authorization. At that ference reports as soon as possible. I alarm at many of the cases and posi- point, does the Senator expect to go believe the D.C. bill will be the first tions that Mr. Lee had taken during back to the legislation pending, or can one up. That is not a conference report. his leadership in activist civil rights the Senator inform us whether he will It is a bill. But I think we have an organizations. They were concerned be propounding additional unanimous- agreement on D.C., so we will get that about whether he would use his job and consent requests with respect to Sen- one accomplished. Hopefully then we army of attorneys in the Justice De- ate business? will have three other conference re- partment to advance the same agenda Mr. NICKLES. To respond to my ports we will be able to do in the next he had pursued for the Legal Defense friend and colleague, I think the next day or two, and we will have, I am sure, Fund. I understood this. But, at the order, after we pass the DOD authoriza- some additional time for my colleague same time, I have known since my days tion bill, would be to take up the Dis- to spend on fast track as well. as a small town lawyer that a good at- trict of Columbia appropriations con- Mr. KERRY addressed the Chair. torney is a strong advocate for his cli- ference report, or appropriations bill. The PRESIDING OFFICER (Mr. ent, regardless of whether he agrees In addition to that, we may well be FAIRCLOTH). The Chair recognizes the with everything the client wants. taking up Amtrak reform legislation, distinguished Senator from Massachu- Mr. Lee had an obligation to con- which has also been working its way setts. vince us at the hearing that he could Mr. KERRY. Mr. President, if I might through, not exactly on a fast track, transfer from the role of creative advo- share with my friend from North Da- but it has been working its way cate for activist civil rights organiza- kota information with respect to at through, and hopefully we can get it tions to neutral and objective enforcer least Amtrak. We have an agreement done as well. of the Nation’s civil rights laws. This now reached with respect to Amtrak. Mr. DORGAN. When does the Senator he failed to do. He would not give any The language is now in print, and I be- expect us to get back to the fast-track cases or positions that he had brought lieve it is being hotlined on both sides. on behalf of the Legal Defense Fund legislation? So with respect to the Amtrak effort Mr. NICKLES. That remains to be that he would not bring as head of the in terms of any interruption, we would seen. That is really Senator LOTT’s Civil Rights Division. He would not anticipate that going through here in a call. It may well be Thursday. It may cite any difference between himself and minimal amount of time. I am not sure the last civil rights chief, Deval Pat- well be Friday. It may well be after the how much the chairman of the commit- House would take it up. rick, who was an unwavering pro- tee, Senator MCCAIN, wants, but I Mr. DORGAN. Further inquiry. I will ponent of the civil rights agenda of the would not imagine it will take more left. Unfortunately, it became clear appreciate the Senator’s response. than half an hour or so. And so I do not As I understand it, conference re- during the hearing that Mr. Lee’s advo- think that will interrupt the course of ports are privileged matters. cacy is guided by a dedicated personal business with respect to fast track in Mr. NICKLES. That is correct. commitment to the positions he has any significant way. Mr. DORGAN. They can be brought Mr. DORGAN. If the Senator will advanced over the years. Mr. Lee started by proclaiming that to the floor of the Senate at any time. yield, an agreement on Amtrak would proposition 209 is unconstitutional. In Amtrak and other intervening legisla- be welcome news I think to all Mem- proposition 209, the people of California tion will require unanimous consent, is bers of the Senate, and it would not be voted to end all government pref- that correct? my intention to try to obstruct that. I Mr. NICKLES. I would have to ask am simply trying to determine when erences and set-asides on the basis of the Presiding Officer on Amtrak. My we might get back to fast track so that race, sex, or national origin. Then, colleague is correct on the conference we might entertain amendments. with the active support of Mr. Lee and reports on appropriations bills. Yes, his organization, a Federal judge f they could. blocked the will of the people, saying We have four appropriations bills NOMINATION OF BILL LANN LEE the referendum was unconstitutional. that we are trying to get through. It TO BE ASSISTANT ATTORNEY The claim was that proposition 209 vio- happens to be that we are at a deadline GENERAL FOR CIVIL RIGHTS lated the 14th amendment, when in re- by November 7, so our highest priority Mr. THURMOND. Mr. President, I ality it mirrored the 14th amendment. is try to complete the various author- rise today to express my opposition to Far from violating the Constitution, ization bills. the nomination of Bill Lann Lee to be proposition 209 essentially states what Mr. DORGAN. If I might just inquire Assistant Attorney General for Civil the Constitution requires. The Ninth further, the reason I ask the question Rights. I have reached this conclusion Circuit recognized this simple fact on is that because we are on the legisla- only after much thought and careful appeal. Regardless, Mr. Lee is steadfast tion dealing with fast track, there are consideration. But I am certain that in his view that it was unconstitu- a number of Senators who will be want- this is the right course. I commend tional for the people of California to ing to offer amendments. It will not be Senator HATCH for his leadership and bring preferences to an end. a pleasant experience to learn that we the excellent statement he delivered on Another disturbing but related issue move to other things and then come the floor yesterday in this regard. involves judicial taxation. I firmly be- back to fast track with some under- When the possibility that Mr. Lee lieve that Federal judges do not have standing there is no time for amend- would be nominated for this position the Constitutional power to raises ments. I am just inquiring to try to de- was first brought to my attention, I taxes or order legislative authorities to termine what the expectation of the was impressed by what I heard. Mr. Lee raise taxes. It is a simple issue of sepa- leadership is with respect to the fast- was born to a hard-working, deter- ration of powers. Taxes are a matter track legislation. mined family of Chinese immigrants. for the legislative branch, the branch Mr. KERRY. Mr. President, would His success at Yale and Columbia Uni- that is responsive to the people. The the acting leader yield for a minute? versity Law School reflects that he in- organization for which Mr. Lee works Mr. NICKLES. First, let me respond herited a commitment to succeed. I was instrumental in the decision of a to my colleague, Senator DORGAN. I was also assured then, and continue to Federal judge in Missouri to order that hear what the Senator is saying. I believe, that he is a man of character, taxes be raised. Mr. Lee would not dis- know that the Senator has some honesty, and intellect. I relayed that avow this approach. Although he stat- amendments he wishes to offer on fast impression to the White House. ed that if confirmed he would not ask November 5, 1997 CONGRESSIONAL RECORD — SENATE S11755 a Federal judge to order a legislative on an inspiring story, but rather, on a And, unfortunately, it doesn’t end authority to raise taxes in the school nominee’s commitment to the bedrock there. When the Government denied desegregation context, he refused to principle that every American should the job to Mr. Cornelius, it also denied rule out such a request in other civil be seen as equal in the eyes of the law. the job to all of Mr. Cornelius’ employ- rights contexts. He fails to recognize The nomination of Bill Lann Lee is ees—over 80 percent of whom are mi- that fundamental principles of separa- in serious peril, and for good reason. norities. tion of powers prohibit judicial tax- Mr. Lee has a long, well-documented, So the Government, in its infinite ation. and disturbing allegiance to the policy wisdom, not only committed discrimi- Mr. Lee’s views on proposition 209 of government-mandated racial pref- nation, but it paid $3 million in the and judicial taxation represent support erences. In spite of the Constitution process. for a dangerous tactic of legal activ- and recent court decisions, Mr. Lee I have filed an amendment to ISTEA ists. They use the unelected, unac- continues to assert that government that would remove this pernicious countable Federal judiciary to accom- jobs and contracts should be handed practice of awarding jobs and contracts plish what they cannot achieve out based on the immutable traits of based on skin color. Racial preferences through the democratic process. When race and gender. are discriminatory, unfair, and uncon- they lost at the ballot box on propo- Mr. Lee’s views, however, go one stitutional. This principle is being re- sition 209, they got a lone Federal giant leap beyond simply allowing ra- affirmed courtroom by courtroom, judge to block the will of the people. cial preferences. Mr. lee has argued State by State all across this country. When they wanted to implement their that the Constitution, in fact, requires But what does Mr. Lee think? Does lavish desegregation experiment in racial preferences. Let me restate that. he think the Constitution bars these Missouri, they got a lone Federal judge Bill Lann Lee has filed papers in Fed- kind of racial preferences? Absolutely to raise taxes. They have pursued their eral court asserting that the very Con- not. So, I think it’s fair to say that Mr. solutions in utter disregard of the peo- stitution which prohibits discrimina- Lee’s message to Mr. Cornelius is: ple. tion based on race and gender, in fact, ‘‘Sorry about the discrimination Today, Mr. Lee and his allies are fail- requires the government to engage in against you, your family, and your em- ing to find support even in the courts. discrimination based on race and gen- ployees. But, the Constitution requires The Federal judiciary, led by the Su- der. it.’’ As absurd as this theory sounds that preme Court, is fashioning a civil JOINING THE CLINTON CORPS OF SOCIAL is what Bill Lann Lee argued in court rights jurisprudence based on the merit ENGINEERS briefs this year as he fought the will of of the individual rather than pref- The Clinton administration is all too the California voters in proposition 209. erential treatment for groups. Mr. Lee eager to add Mr. Lee to its army corps Thankfully, the Ninth Circuit Court of has fought against and continues to be of social engineers. Civil rights lawyers Appeals unanimously rejected the Lee uneasy with this constructive, solidify- like Norma Cantu and Judith Winston theory. In simple, straightforward lan- ing law. It is clear that he would use undoubtedly relish the opportunity to guage, the court explained, ‘‘the 14th his position and arsenal of attorneys to add a lawyer with the misguided views Amendment, lest we lose sight of the dilute or circumvent this progress to- of Bill Lann Lee to their brigade. forest for the trees, does not require ward ending preferential treatment. Cantu and Winston, have helped lead what it barely permits.’’ the administration’s battle against the An excellent example of the failed And, as expected, the Supreme Court courts and the Constitution. These approach of the past is forced busing of this week refused to validate the Lee lawyers, like Lee, have become skilled school children. At the hearing, Mr. theory and allowed the ninth circuit at establishing racial preferences be- Lee continued to express support for ruling to stand. the use of forced busing in some cir- hind the scenes through the jungle of THE CONSTITUTION DOES NOT REQUIRE Federal regulations and by way of the cumstances, even in the 1990’s. He DISCRIMINATION would not back away from his unbe- Throughout Mr. Lee’s lifetime of ad- quiet camouflage of consent decrees. Cantu and Winston, recently lievable assertion in a Supreme Court vocacy, he has consistently overlooked launched a politically motivated inves- brief that ‘‘the term ‘forced busing’ is a one profound point, that is: Every time tigation of the University of California misnomer.’’ the government hands out a job or a graduate schools. As you may remem- Mr. President, many of us in the Sen- contract to one person based on race or ate are concerned about judicial activ- gender, it discriminates against an- ber, Mr. President, in 1995, the regents ism on the bench, and we have every other person based on race or gender. of the University of California voted to reason to be. We must keep in mind Mr. Michael Cornelius recently spoke end heavy-handed racial preference that a judicial activist decision starts poignantly to this point before the policies in student admissions, opting with a proposal by a legal activist. We Constitution Subcommittee in the instead to base admissions solely on cannot and should not stop private or- House of Representatives. He explained merit. These policies had for years re- ganizations from advocating legal ac- that his firm was denied a Government sulted in a two-tiered admissions sys- tivism if they wish. However, we have contract under ISTEA, even though his tem, by which students of preferred ra- a duty to reject legal activism as the bid was $3 million lower than the near- cial and ethnic backgrounds were ad- guiding principle for our Nation’s top est competitor. Mr. Cornelius’ bid was mitted with inferior qualifications civil rights law enforcement officer. rejected because the Government felt than those of other racial and ethnic I must strongly oppose this nomina- that the bid did not use enough minor- backgrounds. tion. ity or women-owned subcontractors. The regents recognized that this sys- I yield the floor. If you think that’s bad, think about tem embodied unconscionable discrimi- The PRESIDING OFFICER. The this: The Cornelius bid proposed to sub- nation which hurt not only those bet- Chair recognizes the distinguished Sen- contract 26.5 percent of the work to ter-qualified applicants that were de- ator from Kentucky. firms owned by minorities and women. nied admission, including many Asian- Mr. MCCONNELL. Mr. President, I Yet, 26.5 percent was not enough in the American applicants who suffered se- rise today to express my deep dis- world of so-called goals and timetables verely under the preference policy, but satisfaction with the misguided views that Mr. Lee thinks the Constitution it also hurt minority students who of President Clinton’s nominee for As- requires. Mr. Lee’s goals and time- faced stigmatization as racial pref- sistant Attorney General for Civil tables are more appropriately called erence admittees. Rights. quotas and set-asides. Now, as a result of the regents’ deci- As many of my colleagues have made You see, the Government took the sion, the University of California will clear, Mr. Lee is a fine man, with ac- contract away from Mr. Cornelius and no longer punish or reward applicants complished legal credentials. His story awarded it to a bidder that proposed to based on their race, but will rely on of hard work and success is truly in- contract 29 percent of the work to mi- widely accepted, long-standing admis- spiring. But, Mr. President, the posi- nority firms, and who charged the Gov- sions criteria that focus on individual tion of Assistant Attorney General for ernment $3 million more than Mr. achievements, such as grades, test Civil Rights should not be filled based Cornelius. scores, and life accomplishments. S11756 CONGRESSIONAL RECORD — SENATE November 5, 1997 Most Americans would applaud the versity of California for its race-neu- when it is directly attached to a spe- regents for their prudent decision. But tral approach? The termination of hun- cific prior discriminatory act, such a not Cantu and Winston. They are using dreds of thousands of dollars in Federal policy cannot be a part of a permanent their civil rights positions at the De- funds. legal and political system. partment of Education to launch a And what does this pattern and prac- Our Supreme Court, which has led Federal taxpayer-funded investigation tice tell us that Mr. Lee will do with an the drive to eliminate legal discrimina- to determine whether schools are dis- army of lawyers at the Justice Depart- tion on a variety of fronts, is wisely criminating by refusing to discrimi- ment? He will bring down the power of taking a long-term view of the impact nate. the Federal Government upon State of racial preferences in America. After The Los Angeles Times reported that and local governments that refuse to thoughtfully considering our future, Winston has asserted that: mandate racial preferences. This, Mr. the Supreme Court, in the Adarand The University of California may have vio- President, is simply unacceptable. case and in rejecting just this week the lated federal civil rights law by dropping its Mr. Lee’s views are neither moderate idea that California’s civil rights ini- affirmative action rules and relying on test nor mainstream. And, his views are not tiative is unconstitutional and in other scores and grades as a basis for selecting new cases has clearly stated that this Na- students. isolated incidents. They are not glib, off-handed statements made during his tion must not establish a governmental This baseless investigation turns the youth. They are not dusty law review system which attempts to allocate principle of nondiscrimination on its articles written by a starry-eyed grad- goods, services and wealth of this Na- head by threatening schools that use uate student. And, they are not cre- tion on the basis of one’s race, on the race-blind admissions policies and ob- ative theories espoused in the ivory basis of the color of their skin. The re- jective measures of merit. This inves- tower of academia. sult will be contrary to the equal pro- tigation has provoked criticism even Mr. Lee’s well-documented views are tection clause of the great 14th amend- from those who typically defend race the voice of a man who exhibits an ment to our Constitution, and contrary preferences. For example, University of alarming allegiance to racial pref- to our goal of a unified America in Texas Law School professor Samuel which people are judged on the con- Issacharoff, recently stated that ‘‘[Ms. erences and a disturbing disregard for Winston] is voicing a theory that does the Constitution. This voice—this tents of their character and not on the not have support in the courts.’’ Pro- man—should not be entrusted with the color of their skin. Mr. President, with regard to the fessor Issacharoff went on to explain noble task of upholding the equal pro- nomination of Bill Lann Lee of Califor- that he was ‘‘not aware of any legal tection clause of the U.S. Constitution. nia to be Assistant Attorney General support for the idea that would say the Several days ago, I placed a hold on for Civil Rights, I want to say with Harvard Law School, for example, can- Mr. Lee’s nomination, and today, I re- confidence that he is a skilled and able not accept only the cream of the crop spectfully announce my formal opposi- if doing so would have an impact on a tion to his nomination. We must end attorney, an honest man, a man who minority group.’’ the divisive practice of awarding Gov- appears to have integrity and the kind And in an editorial, the Sacramento ernment jobs and contracts and oppor- of characteristics that make for a good Bee, a newspaper I might add that sup- tunities based on the immutable trait attorney. ports race preferences, referred to the of skin color and ethnicity. Respect for His entire career has been spent in administration’s legal theory as ‘‘an our Constitution, our courts, and— skilled advocacy in the civil rights Orwellian misreading of the law.’’ most importantly—our individual citi- arena. He is a Columbia Law School ‘‘Equally important,’’ the Bee con- zens, demands no less. graduate who could have practiced on cluded, ‘‘the investigation is an abuse Mr. THURMOND. Mr. President, I Wall Street but chose public interest of federal power, designed to punish wish to commend the able Senator law instead, and he should be com- California and its citizens for [its] deci- from Kentucky for the excellent trea- mended for that. Sadly, however, I sion on affirmative action. * * *’’ tise he just made. must join the chairman of the Judici- So where did this investigation origi- Mr. AKAKA addressed the Chair. ary Committee, Senator Orrin HATCH, nate? Who could muster the contorted The PRESIDING OFFICER. The Sen- and the former chairman of that com- legal arguments to justify these ator from Hawaii is recognized. mittee, Senator THURMOND, who is here threats and these expenditures of tax- Mr. AKAKA. I thank the Chair. tonight and just made an excellent se- payer dollars? (The remarks of Mr. AKAKA pertain- ries of comments on this issue, to an- Were these complaints filed by a stu- ing to the introduction of S. 1376 are nounce my opposition to Mr. Lee. Sim- dent who alleged discrimination? A located in today’s RECORD under ply put, Bill Lee, like President Clin- student organization? A family in Cali- ‘‘Statements on Introduced Bills and ton, is outside the mainstream of fornia? No. I’ll tell you who filed the Joint Resolutions.’’) American civil rights law, the very complaint that launched this Federal Mr. AKAKA. I yield the floor. laws he would be charged with enforc- investigation: Bill Lann Lee, as head of Mr. SESSIONS addressed the Chair. ing. the Western Office of the NAACP Legal The PRESIDING OFFICER (Mr. While the American people and the Defense and Education Fund. ABRAHAM). The Senator from Alabama. Federal judiciary have steadily moved And, it does not end there. The Labor f toward a color-blind ideal, Bill Lee has Department has also joined the pile-on clung to a policy of racial preferences NOMINATION OF BILL LANN LEE to punish California for its decision to and spoils. Bill Lann Lee strongly ad- push for a colorblind society. DOL is Mr. SESSIONS. Mr. President, the vocates racial and gender preferences investigating the charge that U.C. position of Assistant Attorney General which are, in effect, virtually quotas in graduate schools are committing em- for Civil Rights is important to our Na- virtually every area of our society, in- ployment discrimination against the tion. The most important reason is cluding college admissions, congres- minorities who are not accepted into what it signals about the direction the sional voting districts and employ- U.C. graduate schools, and thus, not President plans to take on key civil ment. able to apply for campus jobs. rights issues of the day. I believe a nation that draws voting And where did this complaint origi- In my opinion, this Nation is moving districts on the basis of race, that uses nate? Again, it wasn’t a student. It was in the right direction on civil rights. race as a factor in college admissions Bill Lann Lee and his legal defense We have gone through a turbulent pe- and hiring and promotion decisions is, fund filing another complaint launch- riod where legal segregation has now in fact, destined to have unnecessary ing yet another federally funded inves- been ended, and we are now ending a racial strife and hostility and it does tigation of race-neutral policies based period during which the courts have not bind us together as a nation. on yet another legal theory that is out- used racial preferences and remedies to In my opinion, it would be unwise for side the boundaries of both the Com- cure certain aspects of past discrimina- the Senate to confirm Mr. Lee as As- mission and the courts. tion. sistant Attorney General for Civil And, what is the administration’s While this procedure can be defended Rights. The Assistant Attorney Gen- threatened sanction against the Uni- perhaps in the short run, particularly eral for Civil Rights is one of the most November 5, 1997 CONGRESSIONAL RECORD — SENATE S11757 important law enforcement positions At his confirmation hearing, Lee holding that such programs are pre- in the Federal Government. If con- again stated his odd argument that sumptively unconstitutional. firmed, Mr. Lee would have a powerful proposition 209 is unconstitutional. As Moreover, Bill Lann Lee testified in arsenal of more than 250 lawyers at his Senator HATCH said, this is not an itty- his confirmation hearings that he was disposal. bitty issue whether or not proposition opposed personally to the holding in After our hearings that I participated 209 is constitutional. Adarand. I asked him what his personal in and participated in his questioning, This initiative was a good initiative, view was. He said he personally op- and after review of his record, I have carefully drawn, fully considered by posed that ruling. Senator John concluded that Mr. Lee will continue the people of California. And Mr. Lee ASHCROFT asked Mr. Lee whether the to push for lawsuits, consent decrees continues to assert to this day that it set-aside program at issue in Adarand and other legal actions that are outside is violative of the Constitution of the is unconstitutional, where a set-aside the mainstream of current American United States. This is not fair to Cali- was given to a contractor simply be- legal thought. He sets the civil rights fornia, and we should not subject this cause of their race or sex. policy for the United States, and since Nation to those kinds of views. In response, Mr. Lee noted that the his views are not in accord with the Not surprising, just this week the Su- Supreme Court in Adarand had re- people, the Congress and the courts, he preme Court of the United States re- manded the case to the district court, should not be confirmed in that posi- jected his position on proposition 209 which promptly, by the way, ruled the tion. when it denied certiorari. It refused to program unconstitutional. And in so Let me give you several examples. review the ruling of the California doing, the district court stated: Last fall, the people of California, after court, the ninth circuit court, and held I find it difficult to envisage a race-based full debate, passed proposition 209, the ninth circuit opinion intact. classification that is narrowly tailored. California’s civil rights initiative, It is important to note, I think, for But despite the district court’s which simply prohibits the State from the Members of this body, that this is strong holding, Lee, like the Clinton discriminating against or granting the position of President Clinton. He Department of Justice, continues to preferences to anyone on the basis of adheres to the same view about propo- state and continues to believe that race or gender. sition 209 being unconstitutional. And ‘‘this program is sufficiently narrowly The very day after—he opposed that his Justice Department joined the tailored to satisfy the strict scrutiny referendum—he lost that issue at the ACLU and Bill Lee’s legal defense fund test.’’ ballot box, Mr. Lee and his organiza- and filed an appeal arguing that 209 Mr. Lee simply refuses to accept the tion, the legal defense fund, filed suit was unconstitutional. In effect, the fact that strict scrutiny is an exceed- arguing that proposition 209 was un- President of the United States is ask- ingly difficult and high standard for a constitutional. This is a curious, even ing the unelected judiciary to overrule government agent to meet before it can bizarre argument, because proposition the well-debated and well-considered establish racial preferences, that is, be- 209 mirrors the language of the Civil initiative of the people of California. fore it can give preferences to some- Rights Act of 1964, one of the great So I think it is important for this body for no other reason than their civil rights acts that changed race rela- body, as we consider this nomination, race. tions in America. It also mirrors the to consider what kind of message we Under Mr. Lee’s interpretation, all of 14th amendment. are sending when we either confirm or the approximately 160 Federal racial Even the ninth circuit, the most lib- reject Mr. Lee. preference programs that now exist eral circuit in America, unanimously I think we need to send a message would continue to be constitutional, rejected Mr. Lee’s position. Moreover, that this body stands with the people although most scholars would say that on request for a rehearing, the full and the courts and not this strained under the Adarand decision, many of ninth circuit voted to deny a rehearing view of proposition 209. them, if not most of them, would fail en banc. But even the most liberal cir- There are a couple of other examples to meet constitutional muster. cuit—it is considered the most liberal that I think point out the position of So, Mr. Lee’s interpretation of circuit in the country—rejected Mr. Mr. Lee on racial preferences that indi- Croson and Adarand would make these Lee’s argument that proposition 209, cate that he would not be a fit nominee seminal decisions virtually irrelevant. passed by the people of California to for this position. Almost any program could survive his eliminate racial preferences, was un- In recent years, the Supreme Court, definition of the strict scrutiny stand- constitutional. This is what the court in the Croson decision and the Adarand ard. said: decision clearly held that racial pref- Mr. President, America needs an As- As a matter of conventional equal protec- erences are unconstitutional. The Su- sistant Attorney General for Civil tion analysis — preme Court now subjects all Govern- Rights who will honestly, soberly, and ment racial preferences to what is That is the 14th amendment, the accurately read and apply the law— called strict judicial scrutiny. As you equal protection clause they are refer- even when he disagrees with it. know, it is very difficult, Mr. Presi- Unfortunately, as his confirmation ring to—— dent, for a government program to hearing and followup answers indicate, As a matter of conventional equal protec- withstand strict scrutiny. he has been unable to shed his role as tion analysis, there is simply no doubt that Proposition 209 is constitutional . . . After At his confirmation hearing however, an activist, a partisan civil rights liti- all, the goal of the Fourteenth Amendment Mr. Lee badly mischaracterized the gator. If confirmed, Lee would support to which this Nation continues to aspire, is spirit of these cases. He stated that the the constitutionality of racial pref- a political system in which race no longer Croson and Adarand decisions stand for erences and use his team of some 250 matters. The Fourteenth Amendment, lest the proposition that ‘‘affirmative ac- lawyers to further an agenda that is we lose sight of the forest for the trees, does tion programs are appropriate if they not in keeping with the current state not require what it barely permits. are conducted in a limited and meas- of American law. That means that the 14th amendment ured way.’’ Let me talk about another example certainly does not require quotas and This is not the position that the Su- that is important for us to consider. preferences and it certainly, if any- preme Court stated in Adarand. It Forced busing. Mr. Lee sued exten- thing, will only permit them if they greatly undermines that important de- sively over the years on issues involv- meet the strict test of scrutiny. cision. And it would be unwise for this ing busing. And once, for example, in A lawsuit against proposition 209 is body to confirm a nominee who would Brown versus Califano, in 1980, a Su- another example of those who, when not faithfully follow the Adarand deci- preme Court case, Lee challenged the they lose their issue at the ballot box, sion. constitutionality of a congressionally have taken to the habit of going to As Senator HATCH, who chaired the passed statute, passed by this Senate Federal courts to ask the courts to committee, said so eloquently yester- and the House, that prohibited the De- overrule the will of the people through day on the Senate floor, Bill Lee’s de- partment of Health, Education, and the elected representatives or through scription of Adarand purposely misses Welfare from requiring States to bus the initiative process. the mark of the Court’s fundamental children for racial purposes. S11758 CONGRESSIONAL RECORD — SENATE November 5, 1997 Of course, under the statute, States However, his positions, particularly his vironmentalists—who have forgotten, could adopt forced busing if they want- tendency to file lawsuits to promote or who never knew, what it takes to ed, and the Federal courts could still his agenda and his misreading of Su- produce fiber and shelter, and are indif- order busing. The statute merely pro- preme Court precedents, simply make ferent to the communities and jobs hibited the Department of HEW from him the wrong person at the wrong that produce these commodities. forcing States to bus children on its time to be the Assistant Attorney Gen- Published reports about this legisla- own motion. eral for Civil Rights. tion fail to mention that Federal tim- In his brief challenging that law, Mr. I yield the floor. ber sales are already in severe decline, Lee stated that the congressional Mr. THURMOND. Will the Senator primarily from the limitations placed amendments ‘‘demonstrate discrimina- yield? on the Forest Service by the Clinton tory intent to interfere with desegrega- Mr. SESSIONS. I do. administration’s environmental con- tion.’’ Mr. THURMOND. I wish to commend siderations and species protection ef- Of course, that is an unfounded and the able Senator from Alabama for the forts. In 1987, the Federal Timber Sale unfair charge to make. Many people—I excellent remarks he has made on this Program provided nearly 12 billion know Senator BYRD, on the other side subject. board feet of timber. Now, 10 years of the aisle, had led the fight for that Mr. SESSIONS. I thank the Senator later, less than 4 billion board feet statute. He was not trying to undue from South Carolina for his leadership were sold. This translates to double- and return to segregation. He simply as chairman of the Judiciary Commit- digit unemployment in Washington was concerned, as millions of Ameri- tee and his comments earlier this State’s timber dependent communities. cans have been, that the experiment afternoon. I cannot imagine how terrible it would with busing was not working. And he I yield the floor. be for these already depressed commu- did not want the Department of Edu- f nities if timber harvests were banned cation, on its own, requiring it, and REACTION TO LEACH/MCKINNEY on public lands. since, as years have gone by, it has LOGGING PROPOSAL For the record, I would like to note been well-recognized that the experi- that 23 of Washington’s 39 counties ment with busing has not achieved the Mr. GORTON. Mr. President, legisla- tion was recently introduced in the have been designated as ‘‘distressed’’ goals that were intended, and is, in es- counties under State guidelines, mean- sence, for all practical purposes, a fail- House of Representatives that would ban all commercial logging on Federal ing that their unemployment rates ure. have been 20 percent above the State Parents of all races oppose manda- lands. This legislation would be dev- astating not only for the Pacific North- average for 3 years and median house- tory busing, and the law in Brown ver- hold incomes less than 75 percent of sus Califano reflected this. Again, the west, which is highly dependent on its forest products industries, but disas- the State median. This is, to a great Federal courts rejected Lee’s argument extent, the direct result of economic and upheld the statute. But that is just trous for the entire Nation as well. I’m appalled. Let me state that the devastation in our timber dependent another example of where Mr. Lee has communities. sued to implement a political agenda bill introduced by Representatives These are counties with towns like that he lost during the democratic MCKINNEY, LEACH, MCDERMOTT, and Port Angeles. A pulp mill closure in process. That is, he lost it in the hearts others has absolutely no chance of pas- February resulted in about $17 million and minds of the people and through sage. None. Yet, it’s another confirma- in direct payroll losses and hundreds of their elected representatives. And he, tion of the radical nature of our oppo- jobs. As I speak today, representatives therefore, sought to have the courts nents in this debate about managing from the Port Angeles community are overturn that. our national resources. After years of hosting a summit for similarly dis- In another forced busing case, Mr. talking about compromise and balance, tressed communities that are finding it Lee wrote the following in his brief. it’s clear by the introduction of this hard to survive in an era of declining This is what he wrote: bill that their view is that one of our timber sales. The term ‘‘forced busing’’ is a misnomer. greatest renewable natural resources School districts do not force children to ride shouldn’t be used for any constructive These areas of the State do not share a bus, but only to arrive on time at their as- economic purpose. The sponsors of this the wealth of the booming Seattle signed schools. bill are clearly indifferent to human economy. In 1996, 75 percent of the tim- I think many people feel that that is costs and economic disruption this rad- ber sold by the U.S. Forest Service was the kind of comment that shows arro- ical policy would impose on our Na- to small businesses. These small oper- gance and insensitivity to those who tion’s economy, and particularly on ations are predominately are concerned about children who have our timber dependent communities. headquartered in rural areas; in places no way to go to school but by bus, to be Support for this bill—which I repeat, such as Forks, WA, where jobs and the told, ‘‘Well, you don’t have to ride a has no chance of passage—comes from community’s stability are dependent bus. You just have to show up at a cer- the Sierra Club and other environ- upon the timber industry. These are tain school on time.’’ mental organizations that earlier this communities struggling under existing In conclusion, Mr. President, Amer- year endorsed a policy of zero cut of environmental restrictions and species ica is at a crossroads in the civil rights timber on public lands. More recently, protection efforts. The recent House debate. The American people believe during debate on the Interior appro- proposal would serve as a death blow to overwhelmingly that government serv- priations bill, many of these same these struggling communities. ices and benefits should be adminis- groups supported an amendment sub- Proponents of the zero-cut scheme tered in a color-blind fashion. As a na- stantially reducing the budget for For- also erroneously claim it will benefit tion we have made tremendous est Service roads. Had these groups the Federal Treasury. Nothing could be progress toward racial harmony, and succeeded, the Federal Timber Sale further from the truth. Despite the fact though our work to eradicate racism is Program, which already has been re- that annual timber sale revenues not finished and much bias and preju- duced by two-thirds over the past dec- dropped by over $462 million due to log- dice still exists in our land that we ade, would have been reduced by an- ging restrictions, the Forest Service should not tolerate and should seek to other 50 percent. This was clearly a Federal Timber Sale Program gen- eliminate, we should be proud of the tactic employed by radical environ- erates annual net revenues of $59 mil- great progress that has been made in mental groups with the ultimate goal lion to the U.S. Treasury. the past 30 years. of eliminating all Federal timber har- In addition, due to declining timber Mr. President, it gives me no pleas- vests. harvests, imports of softwood lumber ure to announce this vote against Mr. Proponents of a zero cut policy on between 1992 and 1995 increased by 4 Lee. He is an admirable person, a fine Federal lands lead an effort to further billion board feet. As a result, the aver- lawyer. Please make no mistake, my erode the economic backbone of rural age price of an 1,800 square foot new opposition to him is in no way an at- Americans. It is an effort by mostly home has gone up $2,000. The environ- tack on his integrity and character. urban environmentalists—armchair en- mentalists don’t like to talk about the November 5, 1997 CONGRESSIONAL RECORD — SENATE S11759 inflationary results of their anti-tim- sonable land management plan that as the executive officer aboard U.S.S. ber campaigns—where is their right- resores balance to our forests known as George Washington Carver (SSBN 656). eous indignation when working Ameri- the Quincy Library Group approach. In 1985, Rear Admiral (select) Cohen cans and families find it increasingly Unlike this approach—a balanced, re- took command of U.S.S. Hyman G. difficult to put a roof over their heads? sponsible approach to forest health and Rickover (SSN 709) and skippered the What is most disappointing in this forest management—the zero-cut pro- ship on three deployments. debate is that news articles and ex- posal introduced last week in the When not underwater, Rear Admiral treme environmental organizations fail House does nothing more than carry (select) Cohen has likewise served with to mention the greatest loser if such a out the agenda of extreme national en- distinction on the staff of Commander proposal was ever enacted: our public vironmental organizations. I urge mod- in Chief, U.S. Atlantic Fleet, as senior education system. Some 25 percent of erate, responsible environmental orga- member of the Nuclear Propulsion Ex- the revenue from Federal timber sales nizations to join me in soundly defeat- amining Board and on the staff of the goes directly to counties to be used for ing the proposal in the House and here, Director of Naval Intelligence. He also roads and schools. These counties rely if and when the bill is ever brought be- commanded U.S.S. L.Y. Spear (AS 36), a on these Federal revenues. In addition fore either chamber. submarine tender in Norfolk, VA. Fol- to providing essential local services as Mr. President, I suggest the absence lowing this command tour, he reported, schools and roads, these counties also of a quorum. in April 1993, to the Secretary of the provide direct and indirect services to The PRESIDING OFFICER. The Navy’s staff as the Deputy Chief of national forests, national parks, wil- clerk will call the roll. Legislative Affairs. Among Rear Admi- derness areas, fish and wildlife refuges, The assistant legislative clerk pro- ral(select) Cohen’s many awards and and reclamation areas. Without some ceeded to call the roll. decorations are five Legions of Merit timber harvests in these financially- Mr. NICKLES. Mr. President, I ask and three Meritorious Service Medals. strapped counties, the public education unanimous consent that the order for He is both submarine and surface war- of our children will suffer. the quorum call be rescinded. fare qualified. The argument that the only good The PRESIDING OFFICER. Without During his tenure as the Deputy harvest is no harvest at all overlooks objection, it is so ordered. Chief of Legislative Affairs, Rear Ad- the fact that up to 10,000 acres of Fed- The Senator from Oklahoma is recog- miral (select) Cohen provided the Sen- eral timber lands fall victim to forest nized. ate with timely support and accurate fires every year. This does not even Mr. NICKLES. I thank the Chair. information on Navy plans and pro- take into account the insect and dis- (The remarks of Mr. NICKLES pertain- grams. His close work with the Con- ease outbreaks which ravage thousands ing to the submission of S. 1381 are lo- gress and steadfast devotion to the of acres of public lands. cated in today’s RECORD under ‘‘Sub- Navy mission helped ensure that the In 1994, devastating wildfires ravaged mission of Concurrent and Senate Res- U.S. Navy remained the best-trained, forests in Washington State. The fires olutions.’’) best-equipped, and best-prepared naval were fueled by the excessive buildup on Mr. NICKLES. Mr. President, I sug- force in the world. Faced with count- the forest floor. The forest floor was gest the absence of a quorum. less challenges and a multitude of com- composed of dead, dying, insect in- The PRESIDING OFFICER. The plex and sensitive issues, Rear Admiral fested, and diseased timber which had clerk will call the roll. (select) Cohen’s unflappable leadership, built up due to a lack of active man- The assistant legislative clerk pro- integrity, and limitless energy had a agement on Federal forest lands, in- ceeded to call the roll. profound and positive impact on the cluding thinning and removal of insect- Mr. NICKLES. Mr. President, I ask U.S. Naval Service. infested trees. unanimous consent that the order for As a testament to his extremely val- The health of our forests will deterio- the quorum call be rescinded. uable contributions to the national se- rate under the status quo, as dead and The PRESIDING OFFICER. Without curity of this country, the Navy re- dying trees are left untouched. objection, it is so ordered. cently selected him to flag rank and I Thinning, on the other hand will cre- f am pleased to say that the Senate re- ate a desired condition in which more cently confirmed his nomination. The trees will survive because of less com- TRIBUTE TO REAR ADM. (SELECT) JAY M. COHEN, U.S. NAVY DEP- Chief of Naval Operations will pin on petition for a limited amount of avail- his star Friday, November 7, in the able moisture. By reducing natural fuel UTY CHIEF OF LEGISLATIVE AF- FAIRS Pentagon. With this well-deserved pro- loads through thinning, removal of un- motion, Admiral Cohen will continue derbrush, and dead and dying trees, we Mr. LOTT. Mr. President, I wish to his outstanding service to the Navy will be creating a win-win situation in take this opportunity to recognize and and the Nation as he moves on to posi- which our forests will be healthier and say farewell to an outstanding naval tions of even greater responsibility. On our mills will be stronger. officer and good friend, Rear Adm. (se- behalf of my colleagues on both sides of I think it is also important to note lect) Jay M. Cohen. For the past 41⁄2 the aisle, I wish Rear Adm. (select) Jay that as I heap scorn on the proposed years, Rear Admiral (select) Cohen has Cohen fair winds and following seas. I legislation in the House and its sup- served with distinction as the Navy’s know we will see and hear from him porters, we are beginning to see a re- Deputy Chief of Legislative Affairs, again. jection of this extreme approach by and it is my privilege to recognize his f dedicated environmentalists who live many accomplishments and to com- in timber-dependent communities. Un- mend him for the superb service he has THE VERY BAD DEBT BOXSCORE like their counterparts in Washington provided this legislative body, the Mr. HELMS. Mr. President, at the DC, and other urban areas who are Navy, and the Nation. close of business yesterday, Tuesday, busy turning out fundraising letters, A native of New York City, Rear Ad- November 4, 1997, the Federal debt these true conservationists send their miral (select) Cohen was commissioned stood at $5,432,371,961,282.81 (Five tril- children to the local schools, see the as an ensign upon graduation from the lion, four hundred thirty-two billion, devastating impact of these radical U.S. Naval Academy in 1968. Since three hundred seventy-one million, policies on the local economy, and fear then, Rear Admiral (select) Cohen has nine hundred sixty-one thousand, two for their lives, livelihood, and homes spent the majority of his career patrol- hundred eighty-two dollars and eighty- due to the severe wildfire threat. ling the ocean depths as a Navy sub- one cents). As a member of the Senate Energy mariner. Following submarine train- One year ago, November 4, 1996, the and Natural Resources Committee, it ing, he began his submarine service Federal debt stood at $5,248,378,000,000 was encouraging to see the progress aboard U.S.S. Diodon (SS 349) in San (Five trillion, two hundred forty-eight that is being made at the local level in Diego. Nuclear power trained, he has billion, three hundred seventy-eight northeastern California. There, local served in the engineering departments million). environmentalists, timber workers, of U.S.S. Nathaniel Greene (SSBN 636) Five years ago, November 4, 1992, the and public officials have crafted a rea- and U.S.S. Nathan Hall (SSBN 623), and Federal debt stood at $4,070,185,000,000 S11760 CONGRESSIONAL RECORD — SENATE November 5, 1997 (Four trillion, seventy billion, one hun- lecture named in honor and in memory poning or even giving up cherished ideals in dred eighty-five million). of Joyce McCartan, a courageous the belief that others will do the same to end Ten years ago, November 4, 1987, the woman of peace whom the First Lady conflict and build a better future. All sides Federal debt stood at $2,392,996,000,000 had met during her visit 2 years ago, must compromise and seek this common (Two trillion, three hundred ninety- ground in the weeks and months ahead. and who had inspired many other I want, on behalf of the President, to pay two billion, nine hundred ninety-six women in Northern Ireland to take up tribute to both sides of the border and the million). the cause of reconciliation. community divide, who have worked so hard Fifteen years ago, November 4, 1982, I believe my colleagues will be inter- in recent years to bring about reconciliation the Federal debt stood at ested in Mrs. Clinton’s eloquent re- in the wake of this bitter conflict, and I $1,145,846,000,000 (One trillion, one hun- marks about the positive role of want to mention women in particular. dred forty-five billion, eight hundred women in Northern Ireland and around Women have paid a heavy price for the social forty-six million) which reflects a debt the world in the search for peace and turmoil generated by the troubles, and it therefore comes as no surprise that women increase of more than $4 trillion— hope and opportunity. I ask unanimous $4,286,525,961,282.81 (Four trillion, two are leading the efforts towards a lasting consent that the First Lady’s remarks peace. Tomorrow, in Belfast, I will honor one hundred eighty-six billion, five hundred in Dublin and Belfast be printed in the such woman, Joyce McCartan, whom I was twenty-five million, nine hundred RECORD. privileged to meet on my visit. The National sixty-one thousand, two hundred There being no objection, the re- Women’s Council of Ireland has launched a eighty-two dollars and eighty-one marks were ordered to be printed in project in collaboration with partners in cents) during the past 15 years. the RECORD, as follows: Northern Ireland called ‘‘Making Women f Seen and Heard.’’ It features workshops de- REMARKS OF THE FIRST LADY signed to empower women who are politi- U.S. FOREIGN OIL CONSUMPTION DUBLIN CASTLE; DUBLIN, IRELAND cally and socially marginalized. These work- FOR WEEK ENDING OCTOBER 31 October 30, 1997 shops held on both sides of the border are a Mr. HELMS. Mr. President, the Thank you very much, it is such a great tangible example of what can be done to fos- pleasure for me to be back and I must tell ter communication and reconciliation. American Petroleum Institute reports The United States will continue to do its that for the week ending October 31, you that although my visit is far too brief, my husband is very jealous. He is green with part to support the peace process. My hus- the United States imported 7,986,000 band remains personally committed to this barrels of oil each day, 948,000 barrels jealousy, and as I left this morning, he said ‘‘tell everyone’’—as though I would have a effort and to those who take risks to make more than the 7,038,000 imported each chance to tell the entire populace—how peace happen. We are also fortunate to have day during the same week a year ago. much he wishes he could be here as well. Ambassador Jean Kennedy Smith, who has Americans relied on foreign oil for It has been as, we have heard, nearly two contributed so much to the relationship be- 55.6 percent of their needs last week, years since we were here, and I don’t think tween our countries, to Ireland, and to the and there are no signs that the upward we will ever have a better time anywhere peace process. Be assured that the United spiral will abate. Before the Persian than we did here. The warmth of the greet- States is your partner for the long haul. I want to thank you also for the warm hos- Gulf war, the United States obtained ing and the outpouring at College Green are images that we think about and talk about pitality extended to my daughter during her approximately 45 percent of its oil sup- private visit in June. She was able to come ply from foreign countries. During the in our house all the time. It is wonderful to be back here in this Castle, and I am espe- with a friend and just a few other keepers, Arab oil embargo in the 1970’s, foreign cially pleased that since our visit, Ireland and enjoy the people and the beauty of your oil accounted for only 35 percent of hosted here, the European Union leaders, to country, and I am grateful to you for that. I America’s oil supply. such success. also must tell you that my husband has been Anybody else interested in restoring Much has happened in the Northern Ire- practicing his golf, looking at his calendar domestic production of oil? By U.S. land peace process since my husband was searching for a date that will enable him to return here with a seven-iron in hand. I hope producers using American workers? here. An IRA cease-fire broke down but was restored, and in this precious peace almost that that is not too far off in the distance, Politicians had better ponder the and that he will have the opportunity that I economic calamity sure to occur in all the key parties of the conflict are sitting down to discuss substantive issues. There is have now to greet you personally, to thank America if and when foreign producers you for your friendship and your support, shut off our supply—or double the al- a new government in Ireland, led by the Taoiseach, and this government has built on and to wish you Godspeed in the many im- ready enormous cost of imported oil the determination of its predecessor to keep portant efforts that you are undertaking flowing into the United States—now the political momentum moving toward a today. Thank you very much. 7,986,000 barrels a day. negotiated settlement. f But I’ve been especially pleased to see, REMARKS OF THE FIRST LADY AT JOYCE since my visit, how Ireland has continued to MCCARTAN MEMORIAL LECTURE FIRST LADY’S VISIT TO IRELAND prosper. It has been wonderful to read, as I AND NORTHERN IRELAND have, of the important progress that has UNIVERSITY OF ULSTER; BELFAST, NORTHERN Mr. KENNEDY. Mr. President, last been made, not only in the peace process but IRELAND week the First Lady visited Dublin and in the move toward prosperity, on this is- October 31, 1997 Belfast. When the President and the land. I was very moved to have a visit just a Thank you, Thank you very much, Chan- few days ago in the White House from Mary cellor. I am delighted to be here at this uni- First Lady visited those cities 2 years Robinson, and I know that the polls have versity. I want to thank the university for ago, they received a warm welcome closed and you are about to elect her succes- this invitation, Robert Hanna, Professor Sir from the people of Ireland and North- sor. She has moved from being your Presi- Trevor Smith, Pro Vice Chancellor, and Pro- ern Ireland, and Mrs. Clinton was dent to being in the forefront of human vost Ann Tate. And I’m especially pleased warmly received on her return visit rights, another example of Irish leadership. that I could be joined today by the United last week. Dublin as you know has an important crit- States Ambassador to the Court of St. James During her visit, she emphasized the ical role in producing a settlement. As my Philip Lader, U.S. Counsel General Kathleen President’s commitment to peace in husband said two years ago on College Stevens, and Senator George Mitchell, who Green, America will be with you as you walk Northern Ireland. All friends of Ireland is here in the room with us. the road of peace. We know from our own ex- I want to welcome all of you because I feel in the United States are grateful for perience that making peace among people of so very welcome here, but particularly, a the continuing interest and involve- different cultures is the work of a lifetime. special welcome to the family, friends and ment of the President and the First My husband and I, and all who stand with associates of Joyce McCartan who have Lady in this issue, which is of such you, are under no illusions that reaching an joined us today. great importance to so many Ameri- agreement will be easy. There are centuries It is a great personal pleasure and honor cans. of feelings behind each side’s arguments, and for me to be back in Northern Ireland and to In Dublin on October 30, Mrs. Clinton events of the past 27 years have left wounds reunited with some of the courageous women spoke warmly of her previous visit in that are still raw. and men I first met when I came here two I would like to highlight two themes on years ago with my husband. The sights and 1995 and the continuing strong commit- this short visit here and then tomorrow in sounds and emotions of that visit, the light- ment of the United States to the peace Belfast—compromise and reconciliation. ing of the Christmas Tree outside City Hall, process. When the people want peace, it is the obliga- our walk from Guild Hall Square to At the University of Ulster in Belfast tion of political leaders to find the common Shipquay Street, Protestants and Catholics on October 31, Mrs. Clinton delivered a ground where it can thrive. It involves post- working side by side at the Mackey Metal November 5, 1997 CONGRESSIONAL RECORD — SENATE S11761 Plant—all of that and so much more hold tory. Because, in the end, for them and for so women who through their own personal trag- special places in my husband’s heart and in many other women across Northern Ireland, edies find the strength to go on, but more my own. love of family ran deeper than calls to ha- than that, to reach out and try to prevent And I will always treasure my visit to Ye tred. the conditions from occurring that causes Olde Lamplighter on Lower Ormeau Road, I had never met Joyce before we gathered them such heartbreak. Women, like so many for it was there that I shared a cup of tea together, but I had seen her compassion, of you here who have endured the loss of with Joyce McCartan and her colleagues. It courage and commitment in many other loved ones—fathers, brothers, husbands, sons is, therefore, a signal honor to give this, first eyes—her yearning for a more peaceful and and others—to the Troubles, but have re- of a series of lectures dedicated in her mem- democratic would resonates through the ages fused to give in to bitterness or to dwell in ory, and in recognition of the important role and stretches across the globe. Mothers, the past. women have played, are playing and will wives, daughters, ordinary citizens—their in- You have been working through commu- play in building peace. sistent voices for peace raised sometimes in nity organizations, such as the Northern Ire- I am very delighted that the university, a roar, but more often in a whispered pray- land Women’s Coalition to break the cycle of with the support of corporate sponsorship er—have inspired women and entire societies hatred and save other people’s fathers, from Cable Tel, will honor Joyce McCartan’s around the world to build more open, just, brothers, husbands and sons. Your efforts to work even further by establishing bursaries democratic and peaceful communities. This share grief across sectarian lines have blos- to assist women who are studying conflict chorus of courageous voices can be heard somed into dynamic alliances to end poverty resolution and community reconciliation. today from Belfast to Bosnia, wherever and the causes of violence. And you have This is a hopeful moment, as it was two women are working to end the violence and helped to lay a solid foundation for perma- years ago. But it is even more promising begin the healing. nent peace. now. For the first time in more than 25 Although I have been privileged to travel I want you to know that you should never years, leaders of Northern Ireland’s Catholic widely and meet many of the world’s leaders, feel alone in your efforts. You are part of a and Protestants communities are meeting, I often find that it is in small groups, sitting powerful movement of family feminists, and the world is watching to see whether around a kitchen table, sipping tea with working to strengthen democracy across the they will be able to end a generation of women like Joyce, sharing concerns and globe. Your partners are everywhere. They’re senseless killing and forge a lasting peace. talking about our families, where I’ve the women in South Africa who lost loved When the people want peace, it is the obli- learned the most valuable lessons. And one ones and were victimized by apartheid. But gation of political leaders to find the com- of those lessons is that an extraordinary they have been willing to participate in the mon ground where it can thrive. That re- power is unleashed when women reach out to work of the Truth and Reconciliation Com- quires compromise and reconciliation. That their neighbors and find common ground— mission, and to find in their hearts the ca- involves postponing or even giving up one’s when they began to lift themselves up, and pacity for forgiveness of those who did vio- cherished ideals in the belief that others will by doing so, lift up their families, their lence to them—because what does freedom do the same to end the conflict and build a neighbors, and their communities. mean if people remain imprisoned by their better future. I know that Joyce liked to call herself a own bitterness? All sides must compromise and seek this family feminist because saving families was They are women who are starting small common ground in the weeks and months at the root of all her efforts. This is a bril- community banks in poor rural villages or ahead. The United States will continue to do liant term, and one that I have quoted inner city neighborhoods from Chile to Chi- its part to support the peace process, and my throughout the globe, because it captures cago—because what does freedom mean if husband remains personally committed to the very important idea that when women people don’t have the opportunity and the this effort and to those who take risks for are empowered to make the most of their income to help them gain independence and peace. own potential, then their families will self-sufficiency? They are women in countries like Pakistan Joyce McCartan was one of those risk-tak- thrive, and when families thrive, commu- who have agitated against domestic vio- ers. I want to pay tribute to her and to the nities and nations thrive as well. Women lence—because what does freedom mean if a men and women on both sides of the border who are acting to protect and strengthen woman is afraid to sleep in her own home or and the community divide who have worked their families are playing a central role in protect her children because of a violent hus- so hard in recent years to bring about rec- the building and sustaining of peace and de- band? onciliation in the wake of this bitter con- mocracy around the world. They are women in Zimbabwe and Bolivia flict. We would never have arrived at this Now, often when we talk about democracy, who are running rural health clinics and are hopeful moment without the countless acts or when classes and lectures are held about working in the inner cities to immunize chil- of courage and faith of people like the it, we talk about our highest ideals—freedom dren an provide services—because what does women we honor today. of religion, freedom of association, freedom freedom mean if families are denied access to I have many memories of my visit, and I of speech and of the press, freedom to par- basic health care, and women are denied the even have a souvenir. I have the teapot. ticipate fully in the civic and political life of right to plan their own families? (Laughter and applause.) As you can see, it one’s country. But democracy is also about They are the women in Romania and Esto- is a rather ordinary, stainless steel teapot, ensuring equal access to quality education, nia who are leading voter education one easily found in many Belfast kitchens. health care, jobs and credit. Democracy is projects—because what does freedom mean if But as I told Joyce during our conversation, about respecting human dignity and allow- people do not know how to exercise their this teapot was so much better at keeping ing people the opportunity to take respon- right to choose their own leaders? the tea hot than the ones I had back in the sibility for composing their own lives that They are women from the Philippines to White House. So she gave it to me as a will allow them to live up to their God-given Paraguay who are campaigning for the present. promise. rights of girls to receive the same education I use this teapot every day in my private What we’ve learned over the years is that as their brothers—because what does free- kitchen on the second floor of the White these lofty ideals can be made real only dom mean if women do not gain the skills House. And whenever I look at it, I am re- through the everyday efforts of ordinary and knowledge to make the most of their minded of Joyce’s ability to warm hearts, to citizens. Yes, we need laws and a system of God-given gifts? keep alive hope for a better world and a bet- justice to uphold them, but democracy is Women are not only critical to advancing ter time, despite tragedy after heart-break- nurtured and sustained in the hearts of peo- peace and freedom, they are redefining the ing tragedy. ple, in the principles they honor, in the way very notion of what we mean by a demo- As we sipped our tea together, the women they live their daily lives and how they treat cratic society. Democracy cannot flourish if told me how they had worked over the years, their fellow citizens, in the lessons they women are not full partners in the social, how both Catholic and Protestant, they had teach their children before they tuck them economic, political and civic lives of their realized so much more united than divided into bed at night. communities and nations. Societies will only them. While they may have attended dif- One of the great observers of American de- address the issues closest to the hearts of ferent churches on Sunday, seven days a mocracy, Alexis de Tocqueville, wrote about women when women themselves claim their week they all said a silent prayer for the safe what it was that he though made American rights as citizens. return of a child from school or a husband democracy work. He talked about the way That message has come to life in my own from an errand in town. Seven days a week men and women felt they could participate country. Suddenly, the debates about poli- their families struggled with the same deep- in making their own lives better, how they tics and our future are not only about de- rooted causes of the violence—the terrors of formed associations, how they worked for fense or diplomacy. They are also about how sectarianism, the burdens of poverty, the some common good. And he referred to the to balance work and family, about improving shackles of limited education, the despair of habits of the heart that are necessary for public schools, about keeping health insur- unemployment. any democracy to flourish. It is these habits ance after leaving a job or sending a child off And while they may have held different of the heart that must be nurtured, and that to college for an education. views of the past, they had learned that to- countless, unheralded women around the These issues have become central to our gether they could build a better present and world are quietly doing so every day. political life because thousands of American hope for an even brighter future, by promot- I have tried in my travels to shine a spot- women have become organized and demanded ing understanding, saving lives, preserving light on their achievements because I stand changes, and insisted that our democracy re- families, nurturing hope, and defying his- in awe of women like Joyce McCartan— spond to their concerns. They’ve helped all S11762 CONGRESSIONAL RECORD — SENATE November 5, 1997 Americans understand that strengthening McCartan believed with all her heart, that the White River National Forest in the State families and cherishing children are not just there is a better way, who saw as she sat of Colorado. women’s issues, but issues of vital impor- around so many kitchen tables talking S. 931. An act to designate the Marjory tance to everyone concerned about our com- across the division that everyone was con- Stoneman Douglas Wilderness and the Er- mon future. cerned about the same issues deep down, nest F. Coe Visitor Center. Now, there were some observers who were that we all worried about our lives, our rela- The message further announced that perplexed that during the last presidential tionships, our jobs, our education, our chil- the House has passed the following campaign, these kitchen table issues had be- dren, our health—she understood that if we come so important. They, in fact, derided the could just get enough people around some bills and joint resolutions, in which it phenomenon as the feminization of politics. great kitchen table, where they’d have to sit requests the concurrence of the Senate: I prefer to think of it as the humanization of down and look at one another honestly, H.R. 404. An act to amend the Federal politics—because how we raise our children, share their fears, their hopes, their dreams, Property and Administrative Services Act of care for our sick, train our workers will de- that we could make progress. 1949 to authorize the transfer to State and termine the strength and prosperity of all Well, now, finally, we have men and women local governments of certain surplus prop- our people in the days to come. And how we around a table. I hope they have lots of tea. erty needed for use for a law enforcement or learn to live together across religious, ethnic I hope that they are not only talking about fire and rescue purpose. and racial lines will determine the peace and all of the difficult political issues, but in H.R. 434. An act to provide for the convey- security of our children’s lives. quiet asides, sharing some of what is in their ance of small parcels of land in the Carson That’s why I believe encouraging more heart with one another. And as they do so, I National Forest and the Santa Fe National women’s voices to be heard is important for hope the faces of so many women and men Forest, New Mexico, to the village of El Rito the overall effort that many of you are mak- who have given all they could give over the and the town of Jemez Springs, New Mexico. ing to assure that your children, your grand- years to bring this moment to pass, will be H.R. 1493. An act to require the Attorney children, these young people in this audience seen in the mind’s eye. General to establish a program in local pris- will be able to live out their lives in a peace- Joyce McCartan deserves as her real legacy ons to identify, prior to arraignment, crimi- ful, secure Northern Ireland. It is important that the peace process move forward. She nal aliens and aliens who are unlawfully that these women’s issues that affect our and all the brave women who, for more than present in the United States, and for other deepest concerns as human beings are part of 20 years, marched, begged, prayed, cried, purposes. the political debate. shouted that they wanted peace deserve to H.R. 1604. An act to provide for the divi- Most women, like Joyce McCartan, don’t be heard. sion, use, and distribution of judgment funds become involved in politics because they It is no longer in Joyce’s hands. The bur- of the Ottawa and Chippewa Indians of have any grand philosophy about how they den has been passed to others. And I hope Michigan pursuant to dockets numbered 18– intend to strengthen democracy. Instead, and I pray that those to whom it has been E, 58, 364, and 18–R before the Indian Claims they see how politics—especially politics entrusted will pick up that burden and carry Commission. practiced by those who are engendering con- it forward. Joyce’s work is done. But to H.R. 1702. An act to encourage the develop- flict between people—are hurting their fami- honor her memory, we should all press for- ment of a commercial space industry in the lies. They get fed up with the posturing; they ward with her work—to build peace here and United States, and for other purposes. get fed up with the speech making. When around the world. H.R. 1836. An act to amend chapter 89 of jobs are scarce and hope is in very short sup- Thank you very much. title 5, United States Code, to improve ad- ply, they take matters into their own hands. f ministration of sanctions against unfit They decide, as Joyce memorably said, ‘‘You health care providers under the Federal Em- can’t fry flags in a pan.’’ And they get to MESSAGES FROM THE PRESIDENT ployees Health Benefits Program, and for work on setting things right. Messages from the President of the other purposes. I am told that years ago, Joyce borrowed a H.R. 1839. An act to establish nationally couple of cows from a farmer and led a group United States were communicated to uniform requirements regarding the titling of women to City Hall to protest the removal the Senate by Mr. Williams, one of his and registration of salvage, nonrepairable, of free school milk for children. Another secretaries. and rebuilt vehicles. time, she attended a city council meeting EXECUTIVE MESSAGES REFERRED H.R. 1856. An act to amend the Fish and and refused to leave until they discussed an As in executive session the Presiding Wildlife Act of 1956 to direct the Secretary of increase in the bus fare. And while she had Officer laid before the Senate messages the Interior to conduct a volunteer pilot to be carried out of that meeting, she even- from the President of the United project at one national wildlife refuge in tually forced the council to hear her griev- each United States Fish and Wildlife Service ance and convinced them to introduce a States submitting sundry nominations region, and for other purposes. lower fare for children. It is the stuff of life. which were referred to the appropriate H.R. 2265. An act to amend the provisions It is those issues we talk about around our committees. of titles 17 and 18, United States Code, to kitchen tables that help to develop those (The nominations received today are provide greater copyright protection by habits of the heart that sustain democracy. printed at the end of the Senate pro- amending criminal copyright infringement I thought often about the Troubles here as ceedings.) provisions, and for other purposes. I have thought about Joyce McCartan and f H.R. 2275. An act to require that the Office the women I met as I have fixed myself a pot of Personnel Management submit proposed of tea. I don’t know whether a Catholic or a MESSAGES FROM THE HOUSE legislation under which group universal life Protestant made this teapot. I don’t know insurance and group variable universal life whether a Catholic or a Protestant sold this At 12:37 p.m., a message from the insurance would be available under chapter teapot. I only know that this teapot serves House of Representatives, delivered by 87 of title 5, United States Code, and for me very well. And this teapot stands for all Ms. Goetz, one of its reading clerks, an- other purposes. those conversations around those thousands nounced that the House agrees to the H.R. 2731. An act for the relief of Roy of kitchen tables where mothers and fathers amendments of the Senate to the bill Desmond Moser. look at one another with despair because (H.R. 672) to make technical amend- H.R. 2732. An act for the relief of John they cannot imagine that the future will be ments to certain provisions of title 17, Andre Chalot. any better for their children. But this teapot United States Code. H.J.Res. 91. Joint resolution granting the also is on the kitchen table where mothers The message also announced that the consent of Congress to the Apalachicola- and fathers look at one another and say, we Chattahoochee-Flint River Basin Compact. have to do better. We cannot permit this to House has passed the following bills, H.J.Res. 92. Joint resolution granting the go on. We have to take a stand for our chil- without amendment: consent of Congress to the Alabama-Coosa- dren. S. 587. An act to require the Secretary of There is no room for illusion in the dif- the Interior to exchange certain lands lo- Tallapoosa River Basin Compact. ficulty that confronts the peace process. The cated in Hinsdale County, Colorado. ENROLLED BILLS SIGNED President and all of us who support you in S. 588. An act to provide for the expansion At 4:22 p.m., a message from the this effort know how difficult it will be to of the Eagles Nest Wilderness within the House of Representatives, delivered by overcome the past when the wounds still Arapaho National Forest and the White Ms. Goetz, one of its reading clerks, an- seem so raw. But the children deserve all the River National Forest, Colorado, to include nounced that the Speaker has signed work, all the prayers, all the strength, cour- land known as the Slate Creek Addition. age and commitment that can be brought to S. 589. An act to provide for a boundary ad- the following enrolled bills: bear. justment and land conveyance involving the S. 587. An act to require the Secretary of There will be more bumps on the road. Raggeds Wilderness, White River National the Interior to exchange certain lands lo- There will be those who would rather smash Forest, Colorado, to correct the effects of cated in Hinsdale County, Colorado. the teapot than to fill it with piping hot tea earlier erroneous land surveys. S. 588. An act to provide for the expansion to sit down to have a conversation. And the S. 591. An act to transfer the Dillon Ranger of the Eagles Nest Wilderness within the women and the men who believe, as Joyce District in the Arapaho National Forest to Arapaho National Forest and the White November 5, 1997 CONGRESSIONAL RECORD — SENATE S11763 River National Forest, Colorado, to include sented to the President of the United Court of the District of Columbia for the land known as the Slate Creek Addition. States, the following enrolled bills: term of fifteen years. S. 589. An act to provide for a boundary ad- Ernesta Ballard, of Alaska, to be a Gov- S. 587. An act to require the Secretary of justment and land conveyance involving the ernor of the United States Postal Service for the Interior to exchange certain lands lo- Raggeds Wilderness, White River National a term expiring December 8, 2005. cated in Hinsdale County, CO. Forest, Colorado, to correct the effects of Dale Cabaniss, of Virginia, to be a Member S. 588. An act to provide for the expansion earlier erroneous land surveys. of the Federal Labor Relations Authority for S. 591. An act to transfer the Dillon Ranger of the Eagles Nest Wilderness within the a term expiring July 29, 2002. District in the Arapaho National Forest to Arapaho National Forest and the White John M. Campbell, of the District of Co- the White River National Forest in the State River National Forest, CO, to include land lumbia, to be Associate Judge of the Supe- of Colorado. known as the Slate Creek Addition. rior Court of the District of Columbia for the S. 931. An act to designate the Marjory S. 589. An act to provide for a boundary ad- term of fifteen years. Stoneman Douglas Wilderness and the Er- justment and land conveyance involving the (The above nominations were re- nest F. Coe Visitor Center. Raggeds Wilderness, White River National Forest, CO, to correct the effects of earlier ported with the recommendation that S. 79. An act to provide for the conveyance they be confirmed, subject to the nomi- of certain land in the Six Rivers National erroneous land surveys. Forest in the State of California for the ben- S. 591. An act to transfer the Dillon Ranger nees’ commitment to respond to re- efit of the Hoopa Valley Tribe. District in the Arapaho National Forest to quests to appear and testify before any S. 672. An act to make technical amend- the White River National Forest in the State duly constituted committee of the Sen- ments to certain provisions of title 17, Unit- of Colorado. ate.) ed States Code. S. 931. An act to designate the Marjory By Mr. MURKOWSKI, from the Committee H.R. 708. An act to require the Secretary of Stoneman Douglas Wilderness and the Er- on Energy and Natural Resources: the Interior to conduct a study concerning nest F. Coe Visitor Center. Curt Hebert, Jr., of Mississippi, to be a grazing use and open space within and adja- f Member of the Federal Energy Regulatory cent to Grand Teton National Park, Wyo- Commission for the remainder of the term ming, and to extend temporarily certain EXECUTIVE AND OTHER expiring June 30, 1999. grazing privileges. COMMUNICATIONS Linda Key Breathitt, of Kentucky, to be a H.R. 2464. An act to amend the Immigra- The following communications were Member of the Federal Energy Regulatory tion and Nationality Act to exempt inter- Commission for a term expiring June 30, nationally adopted children 10 years of age laid before the Senate, together with 2002. or younger from the immunization require- accompanying papers, reports, and doc- (The above nominations were re- ment in section 212(b)(1)(A)(ii) of such Act. uments, which were referred as indi- ported with the recommendation that The enrolled bills were signed subse- cated: they be confirmed, subject to the nomi- quently by the President pro tempore EC–3277. A communication from the Under nees’ commitment to respond to re- [Mr. THURMOND]. Secretary of Defense, transmitting, pursuant quests to appear and testify before any to law, the report of a violation of the f Antideficiency Act, case number 96–04; to the duly constituted committee of the Sen- MEASURES REFERRED Committee on Appropriations. ate.) EC–3278. A communication from the Under f The following bills were read the first Secretary of Defense, transmitting, pursuant and second times by unanimous con- to law, the report of a violation of the INTRODUCTION OF BILLS AND sent and referred as indicated: Antideficiency Act, case number 95–18; to the JOINT RESOLUTIONS H.R. 1493. An act to require the Attorney Committee on Appropriations. The following bills and joint resolu- General to establish a program in local pris- f tions were introduced, read the first ons to identify, prior to arraignment, crimi- and second time by unanimous con- nal aliens and aliens who are unlawfully REPORTS OF COMMITTEES sent, and referred as indicated: present in the United States, and for other The following reports of committees purposes; to the Committee on the Judici- By Ms. MIKULSKI (for herself, Ms. ary. were submitted: SNOWE, Mr. LOTT, Mr. SARBANES, Mr. H.R. 1702. An act to encourage the develop- By Mr. CAMPBELL, from the Committee COCHRAN, Mr. GLENN, Mr. D’AMATO, ment of a commercial space industry in the on Indian Affairs, with an amendment in the Mr. HOLLINGS, Mr. HUTCHINSON, Ms. United States, and for other purposes; to the nature of a substitute and an amendment to MOSELEY-BRAUN, Mr. INOUYE, Mr. Committee on Commerce, Science, and the title: FORD, and Ms. COLLINS): Transportation. S. 1079. A bill to permit the leasing of min- S. 1370. A bill to amend title II of the So- H.R. 1836. An act to amend chapter 89 of eral rights, in any case in which the Indian cial Security Act to provide that a monthly title 5, United States Code, to improve ad- owners of an allotment that is located with- insurance benefit thereunder shall be paid ministration of sanctions against unfit in the boundaries of the Fort Berthold In- for the month in which the recipient dies, health care providers under the Federal Em- dian Reservation and held trust by the Unit- subject to a reduction of 50 percent if the re- ployees Health Benefits Program, and for ed States have executed leases to more than cipient dies during the first 15 days of such other purposes; to the Committee on Govern- 50 percent of the mineral estate of that allot- month, and for other purposes; to the Com- mental Affairs. ment (Rept. No. 105–139). mittee on Finance. By Mr. KOHL (for himself and Mr. H.R. 1856. An act to amend the Fish and f Wildlife Act of 1956 to direct the Secretary of DEWINE): the Interior to conduct a volunteer pilot EXECUTIVE REPORTS OF S. 1371. A bill to establish felony violations for the failure to pay legal child support ob- project at one national wildlife refuge in COMMITTEES each United States Fish and Wildlife Service ligations, and for other purposes; to the region, and for other purposes; to the Com- The following executive reports of Committee on the Judiciary. mittee on Environmental and Public Works. committees were submitted: By Mrs. BOXER (for herself and Mrs. FEINSTEIN): H.R. 2265. An act to amend the provisions By Mr. CAMPBELL, from the Committee of titles 17 and 18, United States Code, to S. 1372. A bill to provide for the protection on Indian Affairs: of farmland at the Point Reyes National Sea- provide greater copyright protection by Kevin Gover, of New Mexico, to be an As- amending criminal copyright infringement shore, and for other purposes; to the Com- sistant Secretary of the Interior. mittee on Energy and Natural Resources. provisions, and for other purposes; to the (The above nomination was reported Committee on the Judiciary. By Mr. MURKOWSKI: S. 1373. A bill to establish the Common- H.R. 2675. An act to require that the Office with the recommendation that he be wealth of Guam, and for other purposes; to of Personnel Management submit proposed confirmed, subject to the nominee’s the Committee on Energy and Natural Re- legislation under which group universal life commitment to respond to requests to sources. insurance and group variable universal life appear and testify before any duly con- By Mr. MCCAIN: insurance would be available under chapter stituted committee of the Senate.) S. 1374. A bill to clarify that unmarried 87 of title 5, United States Code, and for By Mr. THOMPSON, from the Committee adult children of Vietnamese re-education other purposes; to the Committee on Govern- on Governmental Affairs: camp internees are eligible for refugee status mental Affairs. Susanne T. Marshall, of Virginia, to be a under the Orderly Departure Program; to the f Member of the Merit Systems Protection Committee on Foreign Relations. ENROLLED BILLS PRESENTED Board for the term of seven years expiring By Mr. KOHL (for himself, Mr. March 1, 2004. FEINGOLD, Mr. BUMPERS, Mr. JOHN- The Secretary of the Senate reported Anita M. Josey, of the District of Colum- SON, Mr. BINGAMAN, and Mr. JEF- that on November 5, 1997, he had pre- bia, to be Associate Judge of the Superior FORDS): S11764 CONGRESSIONAL RECORD — SENATE November 5, 1997 S. 1375. A bill to promote energy conserva- monthly insurance benefit thereunder name. Please make sure that our fam- tion investments in Federal facilities, and shall be paid for the month in which ily gets the Social Security check for for other purposes; to the Committee on En- the recipient dies, subject to a reduc- the last month of our life.’’ ergy and Natural Resources. tion of 50 percent if the recipient dies, By Mr. AKAKA (for himself and Mr. That is what our bill is going to do. during the first 15 days of such month, INOUYE): That is why Senator SNOWE and I are S. 1376. A bill to increase the Federal medi- and for other purposes; to the Commit- introducing the Family Social Secu- cal assistance percentage for Hawaii to 59.8 tee on Finance. rity Protection Act. When we talk percent; to the Committee on Finance. THE SOCIAL SECURITY FAMILY PROTECTION ACT By Mr. HATCH (for himself, Mr. about retirement security, the most Ms. MIKULSKI. Mr. President, important part of that is income secu- LEAHY, and Mr. DASCHLE): today, I rise to talk about an issue that rity. And the safety net for most Amer- S. 1377. A bill to amend the Act incorporat- is very important to me, very impor- ing the American Legion to make a tech- icans is Social Security. tant to my constituents in Maryland nical correction; considered and passed. We know that as Senators we have to By Mr. WARNER: and very important to the people of the S. 1378. A bill to extend the authorization United States of America. make sure that Social Security re- of use of official mail in the location and re- For the second Congress in a row, I mains solvent, and we are working to covery of missing children, and for other am joining in a bipartisan effort with do that. We also don’t want to create purposes; considered and passed. my friend and colleague, Senator an undue administrative burden at the By Mr. DEWINE (for himself, Mr. MOY- OLYMPIA SNOWE, to end an unfair pol- Social Security Administration—a bur- NIHAN, Mr. HATCH, Mr. D’AMATO, Mr. icy of the Social Security System. den that might affect today’s retirees. DODD, Mr. KOHL, Mr. COVERDELL, Mr. Senator SNOWE and I are introducing KENNEDY, Mr. INOUYE, Mr. But it is absolutely crucial that we the Social Security Family Protection LIEBERMAN, Ms. SNOWE, Mr. HUTCHIN- provide a Social Security check for the SON, Mr. THURMOND, Mr. MCCAIN, Mr. Act. This bill addresses retirement se- last month of life. curity and family security. We want SHELBY, Mr. CAMPBELL, and Mr. How do we propose to do that? We the middle class of this Nation to know WYDEN): have a very simple, straightforward S. 1379. A bill to amend section 552 of title that we are going to give help to those way of dealing with this problem. Our 5, United States Code, and the National Se- who practice self-help. curity Act of 1947 to require disclosure under What is it I am talking about? We legislation says that if you die before the Freedom of Information Act regarding have found that Social Security does the 15th of the month, you will get a certain persons, disclose Nazi war criminal not pay benefits for the last month of check for half the month. If you die records without impairing any investigation after the 15th of the month, your sur- or prosecution conducted by the Department life. If a Social Security retiree dies on the 18th of the month or even on the viving spouse or the family estate of Justice or certain intelligence matters, would get a check for the full month. and for other purposes; to the Committee on 30th of the month, the surviving spouse the Judiciary. or family members must send back the We think this bill is fundamentally By Mr. COATS (for himself, Mr. Social Security check for that month. fair. Senator SNOWE and I are old-fash- LIEBERMAN, Mr. D’AMATO, and Mr. I think that is an harsh and heartless ioned in our belief in family values. We KERREY): rule. That individual worked for Social believe you honor your father and your S. 1380. A bill to amend the Elementary Security benefits, earned those bene- and Secondary Education Act of 1965 regard- mother. We believe that it is not only ing charter schools; to the Committee on fits, and paid into the Social Security a good religious and moral principle, Labor and Human Resources. trust fund. The system should allow but it is good public policy as well. By Mr. NICKLES: the surviving spouse or the estate of The way to honor your father and S. 1381. A bill to direct the Secretary of the the family to use that Social Security mother is to have a strong Social Secu- Army to convey lands acquired for the Candy check for the last month of life. rity System and to make sure the sys- Lake project, Osage County, Oklahoma; to This legislation has an urgency, Mr. tem is fair in every way. That means the Committee on Environment and Public President. When a loved one dies, there Works. are expenses that the family must take fair for the retiree and fair for the f care of. People have called my office in spouse and family. That is why we sup- SUBMISSION OF CONCURRENT AND tears. Very often it is a son or a daugh- port making sure that the surviving SENATE RESOLUTIONS ter that is grieving the death of a par- spouse or family can keep the Social ent. They are clearing up the paper- Security check for the last month of The following concurrent resolutions life. and Senate resolutions were read, and work for their mom or dad, and there is referred (or acted upon), as indicated: the Social Security check. And they Mr. President, we urge our colleagues By Mr. WARNER (for himself and Mr. say, ‘‘Senator, the check says for the to join us in this effort and support the FORD): month of May. Mom died on May 28. Social Security Family Protection S. Res. 143. A resolution to authorize the Why do we have to send the Social Se- Act. printing of a revised edition of the Senate curity check back? We have bills to Ms. SNOWE. Mr. President, I am Election Law Guidebook; considered and pay. We have utility coverage that we pleased to join my colleague and agreed to. need to wrap up, mom’s rent, or her S. Con. Res. 61. A concurrent resolution au- friend, the Senator from Maryland, thorizing printing of a revised edition of the mortgage, or health expenses. Why is Senator MIKULSKI, in introducing legis- publication entitled ‘‘Our Flag’’; considered Social Security telling me, ‘Send the lation to correct an inequity that ex- and agreed to. check back or we’re going to come and ists in our Social Security system. S. Con. Res. 62. A concurrent resolution au- get you’?’’ thorizing printing of the brochure entitled With all the problems in our country Currently, when a Social Security ‘‘How Our Laws Are Made’’; considered and today, we ought to be going after drug beneficiary dies, his or her last month- agreed to. dealers and tax dodgers, not honest ly benefit check must be returned to S. Con. Res. 63. A concurrent resolution au- people who have paid into Social Secu- the Social Security Administration. thorizing printing of the pamphlet entitled rity, and not the surviving spouse or This provision often causes problems ‘‘The Constitution of the United States of for the surviving family members be- America’’; considered and agreed to. the family who have been left with the f bills for the last month of their loved cause they are unable to financially one’s life. They are absolutely right subsidize the expenses accrued by the STATEMENTS ON INTRODUCED when they call me and say that Social late beneficiary in their last month of BILLS AND JOINT RESOLUTIONS Security was supposed to be there for life. The bill we are introducing today By Ms. MIKULSKI (for herself, them. is based on legislation I have intro- Ms. SNOWE, Mr. LOTT, Mr. SAR- I’ve listened to my constituents and duced during the last four Congresses. BANES, Mr. COCHRAN, Mr. to the stories of their lives. What they My original legislation prorated the GLENN, Mr. D’AMATO, Mr. HOL- say is this: ‘‘Senator MIKULSKI, we Social Security benefit based on the LINGS, Mr. HUTCHINSON, Ms. don’t want anything for free. But our date of death. If the beneficiary died MOSELEY-BRAUN, Mr. INOUYE, family does want what our parents before the 15th, the surviving spouse Mr. FORD, and Ms. COLLINS): worked for. We do want what we feel received 50 percent of the benefit, if the S. 1370. A bill to amend title II of the we deserve and what has been paid for beneficiary died after the 15th, the sur- Social Security Act to provide that a in the trust fund in our loved one’s viving spouse received the entire November 5, 1997 CONGRESSIONAL RECORD — SENATE S11765 check. The bill Senator MIKULSKI and I I am introducing today, is an innova- I commend Congresswoman LYNN are introducing today expands on this tive proposal which will ensure that WOOLSEY for her hard work and dedica- bill by making other family members the ecological integrity of the Point tion to the House companion legisla- eligible to receive the check if there is Reyes National Seashore is protected tion. She has been working closely not a surviving spouse. for future generations, while also pre- with interested parties in an effort to Current law makes an inappropriate serving the property rights and his- find this innovative approach to con- assumption that a beneficiary has not toric agricultural use of the farmland servation which benefits ranchers, en- incurred expenses during his or her last in the area. vironmentalists, the county, and the month of life. I know that my col- The legislation establishes a Farm- Park Service alike. leagues have heard, as have Senator land Protection Area adjacent to the Last week, the House Resources MIKULSKI and I, from constituents who Point Reyes National Seashore within Committee National Parks and Public have lost a husband or wife, father or which willing farmers and ranchers Lands Subcommittee held a hearing on mother, toward the end of the month, will have the opportunity to sell con- this legislation. In that hearing, con- received the Social Security check and servation easements for their land. The cerns were raised over the Department spent all or part of it to pay the bills, Farmland Protection Area includes of Interior’s involvement in the con- only to receive a notice from Social Se- 38,000 acres of the eastern shore of servation easements and the creation curity that the check must be re- Tomales Bay visible from within Point of a boundary around private agricul- turned. For many of these people, that Reyes. Property owners within that tural lands. check was the only income they had area will be available, but not required, While I understand that the National and they are left struggling to find the to sell conservation easements to their Park Service is not usually involved in money to pay back the Social Security land. agricultural conservation easements I Administration and pay the rest of the Conservation easements are legal believe it is the most suitable agency expense their family member incurred agreements between a land-owner and in this case. The United States Depart- in their last month. a land trust, non-profit, conservation ment of Agriculture [USDA] does have I would like to read a part of a letter organization. The conservation ease- a program whereby ranchers can sell I received from a constituent about the ments restrict development on the land conservation easements. These farm- experience of his family when his which is incompatible with the agricul- lands may not be critical agricultural brother-in-law died. This letter, along tural uses of the land. The easements lands at a national level, but they are with Senator MIKULSKI’s own experi- would not expand public access, pes- critical to the Nation’s investment in ence when she lost a loved one, serves ticide regulations, or hunting rights. the Point Reyes National Seashore. A to highlight why this bill is necessary. Furthermore, the easements will re- simple increase in funding for USDA’s On February 29, 1996, at 9:20 p.m. he passed main with the land in perpetuity pro- Farmland Protection Program would away. . . . he was alive for 99.99617% of the viding security for ranchers as well as not ensure any new funding for the month missing a full month by 0.0038314%. continued protection for the national Farmland Protection Area. With this evidence in hand, the SSA then de- seashore. That also leads to the need for a cided that his check for the month of The easements will allow existing ag- boundary. While I believe it would be Feburary had to be returned to them. Unfor- ricultural activities to continue and tunately, his debts for the month didn’t dis- beneficial to authorize conservation will preserve the pastoral nature of the appear just because he failed to live the easements for the entire agricultural land adjacent to Point Reyes National extra 0.0038315% of the month. . . . it would area, we must first concentrate on the Seashore and the Golden Gate National be nice to see some kind of pro-rating system most critical lands. The boundary will Recreation Areas by guaranteeing no put into place for the rest of the people who ensure that the funding is used on are going to encounter this ghoulish prac- new development. tice. This bill will not allow the Secretary these critical lands—lands closest to the national park which the Federal I know that my colleagues have all to acquire land without the consent of Government has the most interest in received letters like this. For many of the owner. protecting. these people, that Social Security I believe this legislation will become check is the only financial resource a model for land conservation across Currently, there are 18 operating available to deal with the costs in- the Nation as Governments lack the ranches within the existing Point curred during their loved one’s last day funds to purchase fee title to protect Reyes National Seashore. It is my un- of life. Without it, they are left strug- valuable properties from development. derstanding that these ranchers are gling to find the money to pay back This approach may be used to address pleased with their relationship with the Social Security Administration. similar problems at other parks, wild- the National Park Service. All the I believe that this legislation pro- life refuges, and marine sanctuaries by landowners who wanted to continue vides a fair solution to an unfair situa- preserving compatible land use areas ranching when the Point Reyes Na- tion and I hope my colleagues will join that protect view sheds and prevent en- tional Seashore was formed are still un in supporting this bill. vironmental damage. operating ranches. In fact, every single This legislation will allow the Na- rancher has signed a statement affirm- By Mrs. BOXER (for herself and tional Park Service, working with the ing their satisfaction with the continu- Mrs. FEINSTEIN): Marin Agricultural Land Trust ing cooperation and support they re- S. 1372. A bill to provide for the pro- [MALT], the Sonoma Land Trust ceive from the National Park Service tection of farmland at the Point Reyes [SLT], and the Sonoma County Agri- as they continue their ranching oper- National Seashore, and for other pur- cultural Preservation and Open Space ations. poses; to the Committee on Energy and District [SCAPOSD] to protect this This legislation creates a completely Natural Resources. beautiful area at a fraction of the cost voluntary program. Landowners who THE POINT REYES NATIONAL SEASHORE of acquiring title to the properties wish to sell their land to developers, FARMLAND PROTECTION ACT OF 1997 within the new boundaries. In addition, continue to have that right. While I Mrs. BOXER. As with many of our those properties would be maintained don’t encourage such actions, this leg- national parks, monuments, and other on Marin County’s tax rolls. islation does nothing to impede it. We protected treasures, the character and Without this legislation, almost have an opportunity here to take an beauty of the Point Reyes National 40,000 acres of scenic ranch land will be important step toward protecting Seashore are threatened—not by devel- vulnerable to development. This bill farmers and enhancing a national park. opment or environmental degradation has the strong support of the local It is not often that we have such an oc- within the national seashore—but by farmers and ranchers within the area casion where often competing interests proposed development outside the to be protected, local environmental can co-exist. This legislation provides boundary line over which the Park groups including the Marin Conserva- that opening. I encourage my col- Service has no control. tion League, effected local govern- leagues to support this legislation and The Point Reyes National Seashore ments and the local chamber of com- I am hopeful that we can pass it quick- Farmland Protection Act of 1997, which merce. ly. S11766 CONGRESSIONAL RECORD — SENATE November 5, 1997 I ask unanimous consent that the ‘‘(3) REQUIREMENTS.— ‘‘(1) IN GENERAL.—In addition to the sums full text of the legislation be printed in ‘‘(A) PRIORITY.—The Secretary shall give authorized to be appropriated by this section the RECORD. priority to— before the enactment of the Point Reyes Na- There being no objection, the bill was ‘‘(i) acquiring interests in land through the tional Seashore Farmland Protection Act of purchase of development rights and con- 1997, there is authorized to be appropriated ordered to be printed in the RECORD, as servation easements; $30,000,000 to be used on a matching basis to follows: ‘‘(ii) acquiring land and interests in land acquire land and interests in land under sec- S. 1372 from nonprofit corporations operating pri- tion 3(d). Be it enacted by the Senate and House of Rep- marily for conservation purposes; and ‘‘(2) FEDERAL SHARE.—The Federal share of resentatives of the United States of America in ‘‘(iii) acquiring land and interests in land the costs for acquiring land and interests in Congress assembled, by donation or exchange. land under section 3(d) shall be 50 percent of SECTION 1. SHORT TITLE. ‘‘(B) CONSERVATION EASEMENTS.—The Sec- the total costs of the acquisition. This Act may be cited as the ‘‘Point Reyes retary shall not acquire any conservation ‘‘(3) NON-FEDERAL SHARE.— National Seashore Farmland Protection Act easement on land within the Farmland Pro- ‘‘(A) FORM.—The non-Federal share of the of 1997’’. tection Area from a nonprofit organization acquisition costs may be paid in the form of that was acquired by the nonprofit organiza- property, moneys, services, or in-kind con- SEC. 2. PURPOSES. tions before January 1, 1997. tributions, fairly valued. The purposes of this Act are— ‘‘(C) COOPERATIVE AGREEMENTS.—For the ‘‘(B) LAND OF STATE AND LOCAL GOVERN- (1) to protect the pastoral nature of the purpose of managing, in the most cost-effec- MENTS.—For the purpose of determining the land adjacent to the Point Reyes National tive manner, interests in land acquired under non-Federal share of the costs, any land or Seashore from development that would be this subsection, and for the purpose of main- interests in land that is within the bound- incompatible with the character, integrity, taining continuity with land that has an aries of the area depicted on the map de- and visitor experience of the park; easement on the date of enactment of this scribed in section 2(c), that, on the date of (2) to create a model public/private part- subsection, the Secretary shall enter into co- enactment of this subsection, is held under a nership among the Federal, State, and local operative agreements with public agencies or conservation easement by the Marin Agricul- governments, and as organizations and citi- nonprofit organizations having substantial tural Land Trust, the Sonoma County Agri- zens that will preserve and enhance the agri- experience holding, monitoring, and manag- cultural Preservation and Open Space Dis- cultural land along Tomales and Bodega Bay ing conservation easements on agricultural trict, the Sonoma Land Trust, or any other Watersheds; land in the region, such as the Marin Agri- land protection agency or by the State of (3) to protect the substantial Federal in- cultural Land Trust, the Sonoma County Ag- California or any political subdivision of the vestment in Point Reyes National Seashore ricultural Preservation and Open Space Dis- State, shall be considered to be a matching by protecting land and water resources and trict, and the Sonoma Land Trust. contribution from non-Federal sources in an maintaining the relatively undeveloped na- ‘‘(4) REGULATION.— amount that is equal to the fair market ture of the land surrounding Tomales and ‘‘(A) IN GENERAL.—Within the boundaries value of the land or interests in land, as de- Bodega Bays; and of the Farmland Protection Area depicted on termined by the Secretary.’’. (4) to preserve productive uses of land and the map described in section 2(c)— waters in Marin and Sonoma counties adja- ‘‘(i) absent an acquisition of privately cent to Point Reyes National Seashore, pri- owned land or an interest in land by the By Mr. MURKOWSKI: marily by maintaining the land in private United States, nothing in this Act authorizes S. 1373. A bill to establish the Com- ownership restricted by conservation ease- any Federal agency or official to regulate monwealth of Guam, and for other pur- ments. the use or enjoyment of privately owned poses; to the Committee on Energy and SEC. 3. ADDITION OF FARMLAND PROTECTION land, including land that, on the date of en- AREA TO POINT REYES NATIONAL Natural Resources. SEASHORE AND ACQUISITION OF DE- actment of this subsection, is subject to an THE GUAM COMMONWEALTH ACT VELOPMENT RIGHTS. easement held by the Marin Agricultural Mr. MURKOWSKI. Mr. President, I Land Trust, the Sonoma County Agricul- (a) ADDITION.—Section 2 of Public Law 87– send to the desk, for appropriate ref- 657 (16 U.S.C. 459c–1) is amended by adding at tural Preservation and Open Space District, or the Sonoma Land Trust; and erence, legislation to establish the the end the following: Commonwealth of Guam. This measure ‘‘(c) FARMLAND PROTECTION AREA.— ‘‘(ii) such privately owned land shall con- is identical to H.R. 100 which was in- ‘‘(1) IN GENERAL.—The Point Reyes Na- tinue under the jurisdiction of the State and tional Seashore shall include the Farmland political subdivisions within which the land troduced by Congressman UNDERWOOD. Protection Area depicted on the map num- is located. I am introducing this measure at the bered 612/60,163 and dated July 1995, which ‘‘(B) PERMITS AND LEASES.— request of Congressman UNDERWOOD shall be on file and available for public in- ‘‘(i) IN GENERAL.—The Secretary may per- and Governor Gutierrez of Guam. spection in the Offices of the National Park mit, or lease, land acquired in fee under this The quest for self-government and Service of the Department of the Interior in subsection. recognition of the authority to deter- Washington, District of Columbia. ‘‘(ii) CONSISTENCY.—Any such permit or mine the laws and programs that facili- lease shall be consistent with the purposes of ‘‘(2) OBJECTIVE.—Within the Farmland Pro- tate or impede our social, political, and tection Area depicted on the map described the Point Reyes National Seashore Farm- land Protection Act of 1997. economic growth are an integral part in paragraph (1), the primary objective shall of the territorial history of this Na- be to maintain agricultural land in private ‘‘(iii) USE OF REVENUES.—Notwithstanding ownership protected from nonagricultural any other provision of law, revenues derived tion. Even before the Constitution had development by conservation easements.’’. from any such permit or lease— been ratified, the Northwest Ordinance (b) FARMLAND ACQUISITION AND MANAGE- ‘‘(I) may be retained by the Secretary; and set the pattern for the territory sub- MENT.—Section 3 of Public Law 97–657 (16 ‘‘(II) shall be available, without further ap- ject to the new Federal Government. U.S.C. 459c–2) is amended by adding at the propriation, for expenditure to further the The ordinance set a policy that the ter- end the following: goals and objectives of agricultural preserva- ritory would be settled as soon as pos- ‘‘(d) FARMLAND ACQUISITION AND MANAGE- tion within the boundaries of the area de- sible and admitted into the Union with MENT.— picted on the map described to in section 2(c). the other States. That policy, of full ‘‘(1) IN GENERAL.—Notwithstanding sub- self-government and limited govern- sections (a) through (c), the Secretary, to en- ‘‘(C) LAND OF STATE AND LOCAL GOVERN- courage continued agricultural use, may ac- MENTS.—Land or an interest in land, within ance from the Federal Establishment, quire land or interests in land from the own- the area depicted on the map described in marked territorial policy until the be- ers of the land within the Farmland Protec- section 2(c) that is owned by the State of ginning of this century. tion Area depicted on the map described in California or a political subdivision of the While this century has seen the ad- section 2(c). State of California, may be acquired only by mission of States such as Arizona and ‘‘(2) METHOD OF ACQUISITION.— donation or exchange. New Mexico, as well as the more recent ‘‘(A) IN GENERAL.—Except as provided in ‘‘(5) OWNER’S RESERVATION OF RIGHT.—Sec- admission of Alaska and Hawaii, the paragraph (4), land and interests in land may tion 5 shall not apply with respect to land progress of full self-government has be acquired under this subsection only by do- and or an interest in land acquired under this subsection.’’. been slower for most of the areas ac- nation, purchase with donated or appro- quired as a result of the Spanish-Amer- (c) AUTHORIZATION OF APPROPRIATIONS.— priated funds, or exchange. ican War or since that time. In 1898, a ‘‘(B) LAND ACQUIRED BY EXCHANGE.—Land Section 9 of Public Law 87–657 (16 U.S.C. acquired under this subsection by exchange 459c–7) is amended— century ago, the United States ac- may be exchanged for land outside the State (1) by inserting ‘‘(a) IN GENERAL.—’’ before quired the Philippines, Guam, and of California, notwithstanding section 206(b) ‘‘There are authorized’’; and Puerto Rico. In 1900 and 1904 treaties of of the Federal Land Policy and Management (2) by adding at the end the following: cession confirmed the extension of sov- Act of 1976 (43 U.S.C. 1716(b)). ‘‘(b) LAND ACQUISITION.— ereignty over American Samoa. In 1916 November 5, 1997 CONGRESSIONAL RECORD — SENATE S11767 we acquired the Virgin Islands. In 1976 lands, have been addressed individ- ity as an inflexible principle, I do think the covenant that provided the basis ually. Others may no longer be rel- that Washington can be considerably for the acquisition of the Northern evant due to other changes. The more creative than it has been, and Mariana Islands was enacted following central issue, however, is as current certainly can be more understanding of a plebiscite in the islands. and relevant as it was in 1982 when the the uniqueness of the noncontiguous These areas, with the exception of voters in Guam decided to seek com- areas. the Philippines, have not followed the monwealth as a means to obtain great- Insensitivity is also a reason under- path taken by the other territories of er self-government. lying some of the provisions of the leg- the United States. The Philippines The central issue is the proper role islation. The most recent example is achieved commonwealth and independ- and authority of Federal versus local the actions of the Fish and Wildlife ence, although World War II delayed government. Where should decisions be Service in carrying out its land grab in full implementation. Shortly after made, be they right or wrong, and who Guam. Rather than devoting resources World War II, Puerto Rico was per- should bear the burden of providing for to the eradication of the brown tree mitted to replace the local government the future? Should the Federal or local snake, the Fish and Wildlife Service provisions of federal organic legisla- government have the authority to safe- rushed to use the depredation caused tion with a locally drafted Constitu- guard and manage local resources and by the snake as a reason for creating a tion and to elect its Governor. Not provide for the health, safety, edu- refuge and overlay covering almost until the 1970’s were Guam, the Virgin cation, and welfare of the local resi- one-third of Guam. Well know habitat Islands, and American Samoa afforded dents? Should noncontiguous areas such as runways were covered. The rea- the opportunity to popularly elect bear the burden of regulations crafted son for the rush to create the refuge is their own Governor. Also, during that to meet the needs of the contiguous understandable since several of the na- period, Guam and the Virgin Islands United States and for the administra- tive species are already extinct and the were provided the opportunity to de- tive convenience of bureaucrats in rest are scurrying for what little re- velop a constitution to govern local Washington? I use the word noncontig- mains of their existence from the matters. uous because the concerns that led snake. If the Fish and Wildlife Service The Commonwealth of the Northern Guam to seek the provisions of this had not moved quickly, they would Mariana Islands and American Samoa legislation are equally applicable to have had to defend creating the only are in a slightly different situation. areas in Alaska or Hawaii. Status, in refuge for non-existent species. I sup- American Samoa has a locally devel- the constitutional sense, is not the pose they could have used it as a prece- oped constitution promulgated by sec- problem or the answer, but rather the dent for creating a refuge for dinosaurs retarial order and the Northern Mari- allocation of power and authority in Utah and locking up whatever lands anas operate under the local constitu- under the Constitution between Fed- the President and Secretary Babbitt tion authorized under the covenant. eral and local government. missed last year. In that context, I The process of local self-government An example of this would be the ap- would suggest that at the next meeting and improvements in Federal-terri- plication of provisions of the Clean Air of the Western Governors, the Gov- torial relations has not stopped for any Act to Guam. Notwithstanding the fact ernors of Guam and Utah swap stories of these areas. This Congress has al- that Guam is a relatively small island of Federal land grabs. ready seen as much attention as has located in the western Pacific in the I am in full sympathy with the objec- occurred over the past decade. The middle of the trade winds, it had to tives of this legislation. The Governor Senate has passed legislation that pro- comply with the same emission re- of Guam may feel that he is alone, but vides the Virgin Islands with the same quirements as did places like Los Ange- we in Alaska know full well what deal- flexibility to issue short-and long-term les or Washington. My colleagues ing with Washington entails. We also bonds as the States enjoy. The Senate should remember that what made must deal with insensitive bureaucrats, has also passed legislation that would Guam so valuable to the Spanish was acquisitive Secretaries, irrelevant reform the way surplus Federal lands that the galleons leaving Acapulco stateside standards, and a wealth of of- are disposed of in Guam, providing the were blown by the trade winds to ficious and fussy Federal agencies who Government of Guam with an effective Guam, where they reprovisioned prior seem to have as their sole mission voice in decisions with respect to fu- to heading to Manila. The powerplants making life as difficult, expensive, and ture land use management. We have in Guam were required to install ex- complex as possible. Guam at least has also considered modifications re- pensive scrubbers even though the a central road system and the possibil- quested by the executives in Guam and nearest point of land was the Phil- ity of developing the southern end of the Virgin Islands to the powers of the ippines. Eventually we managed to ob- the island—an option that Federal Governor and Lieutenant Governor. tain a waiver for Guam, but it was only managers are committed to denying Alaska. I fully understand the frustra- Both the Senate and the House have after years of effort by our committee, tions that led the U.S. citizens in pending legislation to provide a ref- with the help I would note of my col- Guam to develop this legislation. Un- erendum in Puerto Rico on future po- leagues on the Environment and Public fortunately, I must say that the prob- litical status. In that context we are Works Committee, to convince EPA lem is not the plenary authority of considering status in the larger con- that granting a waiver for Guam was Congress under the Territorial Clause. stitutional context of Statehood or not a precedent for exempting the As I stated, this legislation is a com- independence as well as possible refine- State of Nebraska. Alaska and Hawaii panion measure to one introduced by ments to the present relationship. We have not been as successful, I would Congressman UNDERWOOD and I am in- also have pending in the Senate legis- note. Another example is the visa waiv- troducing it at his request and at the lation forwarded by the administration er that we finally managed to obtain request of the Governor of Guam. I ask that would revise Federal-territorial for Guam for tourists. unanimous consent that a copy of the These are not unique problems. Ad- relations with the Northern Marianas letter be included in the RECORD. in the areas of minimum wage, immi- ministrative convenience seems to al- The PRESIDING OFFICER. Without gration, and trade. ways outweigh the realities of life in objection, it is so ordered. The legislation that I am introducing the noncontiguous areas, nor are our (See exhibit 1.) today is a very broad approach to Fed- provisions uniform. In some instances, Mr. MURKOWSKI. Mr. President, I eral relations with Guam. The provi- the difference in treatment aggravates do not necessarily support every provi- sions address several different issues the local unhappiness with Washing- sion in this legislation as drafted, but I ranging from problems over resource ton. Guam is the southernmost of the do support the underlying objective of allocation and use to operations of gov- Mariana Islands. The Northern Mari- redressing the balance of power and au- ernment to social and cultural issues. ana Islands, which can be seen from thority between Washington and In the past decade since the voters in Guam, are not subject to the Jones Agana. As a result of my trip to Guam Guam approved the present draft, some Act, but Guam is. The Virgin Islands last year, I introduced legislation to of the provisions, such as judicial re- has an exception, but Guam does not. deal with the disposal of surplus Fed- form or disposal of excess Federal While I would never argue for uniform- eral property and prevent any future S11768 CONGRESSIONAL RECORD — SENATE November 5, 1997 land grabs such as the one engaged in EXHIBIT 1 This policy changed in April 1995. My by the Fish and Wildlife Service. That CARL T.C. GUTIERREZ, amendment to fiscal year 1997 foreign legislation was not everything that ei- GOVERNOR OF GUAM. operations appropriations bill, which ther the Governor or I would have pre- ROBERT A. UNDERWOOD, comprises part of the Omnibus Appro- ferred, but I think that the end result MEMBER OF CONGRESS, priations Act, was intended to restore October 29, 1997. of the Senate action, if finally enacted, the status quo ante regarding the adult Senator FRANK MURKOWSKI, unmarried children of former prisoners. will be a significant improvement in Chairman, Committee on Energy and Natural My comments in the CONGRESSIONAL Federal-territorial relations. I intend Resources, Washington, DC. RECORD from July 25, 1996, clearly to take the same constructive ap- DEAR CHAIRMAN MURKOWSKI: Today we had our first hearing on H.R. 100, the Guam Com- spelled this out. proach to the provisions of this legisla- monwealth Act, before the House Committee Unfortunately, certain categories of tion. on Resources. As we work with the Members children who, prior to April 1995, had I appreciate that questions have been of the House Committee to perfect their ver- received derivative refugee status and sion, we believe it is time to move forward raised over some of the provisions from whom Congress intended to be covered and proceed to the next step in the process. by last year’s amendment, are now constitutional as well as policy Therefore, we respectfully request your grounds, but that should not be an ex- support for the introduction of companion considered ineligible to benefit from legislation to this bill in the Senate and con- that legislation. cuse to avoid addressing the underlying First, prior to April 1995 the widows concerns that led to the drafting and sideration of a hearing at the earliest pos- sible convenience of the committee. of prisoners who died in re-education approval of those provisions by the vot- We pledge to work closely with you and camps were permitted to be resettled ers in Guam. As I said before, we have your staff and assist you in any way we can. in the United States under this subpro- a lot of experience with foolish and Sincerely, gram of the ODP, and their unmarried petty restrictions from Federal agen- CARL T.C. GUTIERREZ, adult children were allowed to accom- Governor of Guam. cies. As a percentage, far more of Alas- ROBERT A. UNDERWOOD, pany them. These children are now ka is subject to Federal land domina- Member of Congress. considered ineligible to benefit from tion and our communities suffer the last year’s legislation. consequences of an inability to obtain By Mr. MCCAIN: To ask these widows to come to the S. 1374. A bill to clarify that unmar- transportation and utility corridors United States without their children is ried adult children of Vietnamese re- across the Federal lands. I have sym- equal to denying them entry under the education camp internees are eligible program. Many of these women are el- pathy and sensitivity to local cultural for refugee status under the Orderly derly and in poor health, and the pres- concerns as well because we also see Departure Program; to the Committee ence of their children is essential to Federal agencies trying to frustrate on Foreign Relations. providing the semblance of a family the benefits and protections afforded THE ORDERLY DEPARTURE PROGRAM unit with the care that includes. our Native Alaskans. Guam is con- CLARIFICATION ACT OF 1997 The second problem stemming from cerned over the loss of the economic Mr. MCCAIN. Mr. President, I rise to INS and the State Department’s inter- potential of its marine resources and introduce legislation that is basically a pretation of the 1997 language involves Alaska holds the single most promising technical correction to language that I the roughly 20 percent of former Viet- petroleum area on the continent. had included in the fiscal year 1997 Om- namese re-education camp prisoners nibus Consolidated Appropriations Act. resettled in the United States who I hope to meet shortly with the Gov- That language, and the legislation I were processed as immigrants, at the ernor and with members of the Guam offer today, are designed to make hu- convenience of the United States Gov- Legislature to discuss the provisions of manitarian exceptions for the unmar- ernment. this legislation. I fully expect that the ried adult children of former reeduca- Their unmarried adult children, prior next few years will be particularly ac- tion camp detainees seeking to emi- to April 1995, were still given deriva- tive for our Committee as we consider grate to the United States under the tive refugee status; however, the posi- not only how to improve and strength- Orderly Departure Program [ODP]. De- tion of INS and State is that these en local self-government in and revise spite what I considered to have been children are now ineligible because the Federal relations with Guam, but also pretty unambiguous legislation in both language in the fiscal year 1997 bill in- deal with concerns that have arisen word and intent, the Immigration and cluded the phrase ‘‘processed as refu- with some of the expectations and im- Naturalization Service and Department gees for resettlement in the United plementation of provisions of the of State interpreted my amendment to States.’’ Northern Marianas Covenant, political the 1997 bill so as to exclude the very That phrase was intended to identify status in Puerto Rico, and renegoti- people to whom the provision was tar- the children of former prisoners being geted. brought to the United States under the ation and extension of certain provi- An amendment identical to the bill I subprogram of the ODP and eligible to sions of the Compacts of Free Associa- am introducing today was included, be processed as a refugee—which all tion with the Republic of the Marshall without objection, to the State Depart- clearly were—as distinct from the chil- Islands and the Federated States of Mi- ment authorization bill for fiscal year dren of former prisoners who were not cronesia. Much has happened in the 1998. Because that bill is hung-up over being processed for resettlement in the north Pacific since World War II and it an unrelated issue, and because the United States. is our responsibility to be as sensitive State Department ceased accepting The fact that a former prisoner, eligi- and responsible as possible to the needs new applications for the ODP at the ble to be processed as a refugee under and aspirations of the local govern- end of September, it was imperative the ODP subprogram, was processed as ments who are either within or in free that another avenue be sought for at- an immigrant had no effect prior to association with the United States. I taining passage of this important legis- April 1995, and their children were encourage my colleagues to take the lation. I wish to reiterate that this is granted refugee status. The intention time to become more familiar with an uncontroversial bill, supported ear- of last year s legislation was to restore these areas and to take their particular lier this year by the Senate, and which the status quo ante, including for the enjoys the backing of the Department unmarried adult children of former needs and problems into consideration of State. prisoners eligible for and included in when crafting legislation. It is far easi- Prior to April 1995, the adult unmar- this subprogram but resettled as mi- er to address the situation of the non- ried children of former Vietnamese re- grants. contiguous areas at the outset of legis- education camp prisoners were granted Mr. President, I urge support for this lative efforts, than it is to come in derivative refugee status and were per- legislation. later when we have entrenched bureau- mitted to accompany their parents to Mr. President, I ask unanimous con- crats who see their power threatened if the United States under a subprogram sent that the text of the bill be printed we act responsibly. of the Orderly Departure Program. in the RECORD. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11769 There being no objection, the bill was increased the need for improved energy agency for use toward investment in ordered to be printed in the RECORD, as conservation. Simply put, we cannot energy efficiency projects. The agency follows: continue to rely on imported oil to will then repay the loan, making the S. 1374 meet such a large part of our Nation’s bank self-supporting after a few years. Be it enacted by the Senate and House of Rep- energy needs. This dependence places The Secretary of Energy will also es- resentatives of the United States of America in our economic security at great risk. At tablish selection criteria for each en- Congress assembled, present, petroleum imports account for ergy efficiency project, determining SECTION 1. ELIGIBILITY FOR REFUGEE STATUS. fully one-half of our trade deficit. In the project is cost-effective and pro- Section 584 of the Foreign Operations, Ex- addition, the use of oil and other fossil duces a payback in 3 years or less. port Financing, and Related Programs Ap- fuels contributes to global climate Agencies will be required to report the propriations Act, 1997 (Public Law 104–208; change, air pollution, and acid rain. progress of each project with a cost of 110 Stat. 3009–171) is amended— Mr. President our attempts to rem- more than $1 million to the Secretary (1) in subsection (a)— edy this situation are nothing new. In (A) by striking ‘‘For purposes’’ and insert- 1 year after installation. The Secretary fact, the laws requiring significant en- will then report to Congress each year ing ‘‘Notwithstanding any other provision of ergy use reductions are already in law, for purposes’’; and on all the operations of the bank. (B) by striking ‘‘fiscal year 1997’’ and in- place. The Energy Policy Act of 1992 Mr. President, this bill will provide serting ‘‘fiscal years 1997 and 1998’’; and mandated that Federal agencies use the real dollars required to make the (2) by amending subsection (b) to read as cost-effective measures, with less than Executive order goals a reality. The follows: a 10-year payback, to reduce energy Congressional Budget Office has pro- ‘‘(b) ALIENS COVERED.— consumption in their facilities by 20 jected a 5-year savings for the bill at $3 ‘‘(1) IN GENERAL.—An alien described in percent by the year 2000 compared to million. Our energy savings will be this subsection is an alien who— 1985 levels. President Clinton, with Ex- ‘‘(A) is the son or daughter of a qualified even greater over the long term. ecutive Order 12902, extended the man- Mr. President, in closing I would like national; date by requiring Federal agencies to ‘‘(B) is 21 years of age or older; and to thank Johnson Controls, the largest ‘‘(C) was unmarried as of the date of ac- reduce energy consumption by 30 per- public company in Wisconsin, for their ceptance of the alien’s parent for resettle- cent by the year 2005 compared to 1985 continued leadership and input on this ment under the Orderly Departure Program. energy uses. If accomplished, this bill. As a maker of energy conservation ‘‘(2) QUALIFIED NATIONAL.—For purposes of would save the American taxpayer mil- systems, Johnson has provided me with paragraph (1), the term ‘qualified national’ lions in annual energy costs and in the real world insights that have means a national of Vietnam who— turn put us on the road to future en- helped me draft a bill that attempts to ‘‘(A)(i) was formerly interned in a reedu- ergy savings. This would also improve address our energy conservation needs. cational camp in Vietnam by the Govern- our environment, our balance of trade, ment of the Socialist Republic of Vietnam; Mr. President, I ask unanimous con- or and our national security. sent the full text of the bill be printed But the road toward energy effi- ‘‘(ii) is the widow or widower of an individ- in full in the RECORD. I urge my col- ciency or even self-sufficiency is not an ual described in clause (i); and leagues to support this bill and will easy one and requires capital invest- ‘‘(B)(i) qualified for refugee processing push for its early enactment. ment. The administration and Congress under the reeducation camp internees sub- There being no objection, the bill was program of the Orderly Departure Program; must back their policies with real dol- ordered to be printed in the RECORD, as and lars for investment in energy efficiency follows: ‘‘(ii) on or after April 1, 1995, is accepted— projects. According to the recent Fed- ‘‘(I) for resettlement as a refugee; or eral energy efficiency and water con- S. 1375 ‘‘(II) for admission as an immigrant under Be it enacted by the Senate and House of Rep- the Orderly Departure Program.’’. servation study, drafted by the Depart- ment of Energy, an investment of $5.7 resentatives of the United States of America in Congress assembled, billion is required through 1996 to 2005 By Mr. KOHL (for himself, Mr. SECTION 1. SHORT TITLE. FEINGOLD, Mr. BUMPERS, Mr. to meet National Energy Policy and This Act may be cited as the ‘‘Federal En- JOHNSON, Mr. BINGAMAN, and Conservation Act and Executive order ergy Bank Act’’. Mr. JEFFORDS): goals. The best estimate of the total SEC. 2. FINDINGS AND PURPOSE. S. 1375. A bill to promote energy con- funding available has resulted in a (a) FINDINGS.—Congress finds that— servation investments in Federal fa- shortfall of $2 billion. Without signifi- (1) energy conservation is a cornerstone of cilities, and for other purposes; to the cant funding the goals as set forth by national energy security policy; Committee on Energy and Natural Re- the President will not be met. Laws (2) the Federal Government is the largest consumer of energy in the economy of the sources. and mandates alone will not solve our energy problems. It requires long-term United States; THE FEDERAL ENERGY BANK ACT OF 1997 capital investment. (3) many opportunities exist for significant Mr. KOHL. Mr. President, my business back- energy cost savings within the Federal Gov- Mr. President, I rise today to intro- ernment; and ground has taught me that most large (4) to achieve the energy savings required duce legislation entitled ‘‘the Federal paybacks come from positive long-term Energy Bank Act.’’ The purpose of this by Executive Order, the Federal Government investments. Unfortunately, the Fed- must make significant investments in en- legislation is to provide a stable long- eral Government does not traditionally ergy savings systems and products, including term source of funding for energy effi- take this approach. More often that energy management control systems. ciency projects throughout the Federal not, it seeks short-term savings and (b) PURPOSE.—The purpose of this Act is to Government. If we are to start the Na- cuts which do not address the problem promote energy conservation investments in tion on the road toward increased en- of energy consumption or encourage fu- Federal facilities. ergy conservation we must begin with ture energy conservation. SEC. 3. DEFINITIONS. the Federal Government. This bill will Mr. President, my bill will help ad- In this Act: (1) AGENCY.—The term ‘‘agency’’ means— help provide the necessary investments dress this funding shortfall. The bill to make this first step toward long- (A) an Executive agency (as defined in sec- creates a bank to fund the purchase of tion 105 of title 5, United States Code, except term energy conservation possible. energy efficiency projects by Federal that the term also includes the United I have long believed that our Nation agencies and in the long run will re- States Postal Service); must implement a sensible national en- duce the overall amount of money (B) Congress and any other entity in the ergy policy which emphasizes greater spent on energy consumption by the legislative branch; and energy conservation and efficiency, as Federal Government. For each of the (C) a court and any other entity in the ju- well as the development of renewable fiscal years 1999, 2000, 2001, each Fed- dicial branch. resources. This bill is just one step of eral agency will contribute an amount (2) BANK.—The term ‘‘Bank’’ means the many that need to be taken to reduce Federal Energy Bank established by section equal to 5 percent of its previous year’s 4. our energy consumption problems. The utility costs into a fund or bank man- (3) ENERGY EFFICIENCY PROJECT.—The term events in the Middle East, coupled with aged by the Secretary of the Treasury. ‘‘energy efficiency project’’ means a project the environmental problems associated The Secretary of Energy will author- that assists an agency in meeting or exceed- with the use of fossil fuels, have only ize loans from the bank to any Federal ing the energy efficiency goals stated in— S11770 CONGRESSIONAL RECORD — SENATE November 5, 1997 (A) part 3 of title V of the National Energy (B) WAIVER.—The Secretary may waive the the 1992 Energy Policy Act and after Conservation Policy Act (42 U.S.C. 8251 et requirement of subparagraph (A) if the Sec- the United States’ signing of the seq.); retary determines that payment of interest Framework Convention on Climate (B) subtitle F of title I of the Energy Pol- by an agency is not required to sustain the Change in Rio de Janeiro, Brazil, was icy Act of 1992; and needs of the Bank in making energy effi- (C) applicable Executive orders, including ciency project loans. one to encourage the Federal Govern- Executive Order Nos. 12759 and 12902. (5) AGENCY ENERGY BUDGETS.—Until a loan ment to implement a comprehensive (4) SECRETARY.—The term ‘‘Secretary’’ is repaid, an agency budget submitted to energy savings program for the Federal means the Secretary of Energy. Congress for a fiscal year shall not be re- Government through energy efficiency (5) TOTAL UTILITY PAYMENTS.—The term duced by the value of energy savings accrued investments. ‘‘total utility payments’’ means payments as a result of the energy conservation meas- After all, I believe that if Wisconsin made to supply electricity, natural gas, and ure implemented with funds from the Bank. consumers and business have been con- any other form of energy to provide the (6) AVAILABILITY OF FUNDS.—An agency verted to the wisdom of compact fluo- heating, ventilation, and air conditioning, shall not rescind or reprogram funds made rescent light bulbs, efficient heating lighting, and other energy needs of an agen- available by this Act. Funds loaned to an cy facility. agency shall be retained by the agency until and cooling systems, weatherization, SEC. 4. ESTABLISHMENT OF BANK. expended, without regard to fiscal year limi- and energy saving computers, among (a) IN GENERAL.—There is established in tation. the wide range of potential efficiency the Treasury of the United States a trust SEC. 6. SELECTION CRITERIA. improvements, that the Federal Gov- fund to be known as the ‘‘Federal Energy (a) IN GENERAL.—The Secretary shall es- ernment promoting those actions Bank’’, consisting of— tablish criteria for the selection of energy ef- should also make the same invest- (1) such amounts as are appropriated to the ficiency projects to be awarded loans in ac- ments to the taxpayers’ benefit. Bank under section 8; cordance with subsection (b). Section 152 of the Energy Policy Act (2) such amounts as are transferred to the (b) SELECTION CRITERIA.—The Secretary may make loans only for energy efficiency mandated that Federal agencies use all Bank under subsection (b); cost-effective measures that could be (3) such amounts as are repaid to the Bank projects that— under section 5(b)(4); and (1) are technically feasible; implemented with less than a 10-year (4) any interest earned on investment of (2) are determined to be cost-effective payback to reduce energy consumption amounts in the Bank under subsection (c). using life cycle cost methods established by in their facilities by 20 percent by the (b) TRANSFERS TO BANK.— the Secretary by regulation; year 2000 compared to 1985 consump- (1) IN GENERAL.—At the beginning of each (3) include a measurement and manage- tion levels. of fiscal years 1999, 2000, and 2001, each agen- ment component to— On March 8, 1994, President Clinton cy shall transfer to the Secretary of the (A) commission energy savings for new signed Executive Order 12902. This Federal facilities; and Treasury, for deposit in the Bank, an order was an even more aggressive amount equal to 5 percent of the total util- (B) monitor and improve energy efficiency ity payments paid by the agency in the pre- management at existing Federal facilities; mandate to improve energy efficiency ceding fiscal year. and in Federal buildings nationwide by re- (2) UTILITIES PAID FOR AS PART OF RENTAL (4) have a project payback period of 3 years quiring agencies to use cost-effective PAYMENTS.—The Secretary shall by regula- or less. measures to reduce energy use by fiscal tion establish a formula by which the appro- SEC. 7. REPORTS AND AUDITS. year 2005 by 30 percent compared with priate portion of a rental payment that cov- (a) REPORTS TO THE SECRETARY.—Not later the agency’s 1985 energy use. ers the cost of utilities shall be considered to than 1 year after the installation of an en- After taking office, I have learned be a utility payment for the purposes of ergy efficiency project that has a total cost that among the most significant con- of more than $1,000,000, and each year there- paragraph (1). straints to implementing more energy (c) INVESTMENT OF FUNDS.—The Secretary after, an agency shall submit to the Sec- of the Treasury shall invest such portion of retary a report that— efficient practices in the Federal Gov- funds in the Bank as is not, in the Sec- (1) states whether the project meets or ernment is the lack of sufficient funds retary’s judgment, required to meet current fails to meet the energy savings projections to invest in energy efficient equip- withdrawals. Investments may be made only for the project; and ment. in interest-bearing obligations of the United (2) for each project that fails to meet the Section 162 of the Energy Policy Act States. savings projections, states the reasons for of 1992 directed the Secretary of En- SEC. 5. LOANS FROM THE BANK. the failure and describes proposed remedies. ergy to conduct a detailed study of op- (b) AUDITS.—The Secretary may audit any (a) IN GENERAL.—The Secretary of the energy efficiency project financed with fund- tions for financing energy and water Treasury shall transfer from the Bank to the conservation measures in Federal fa- Secretary such amounts as are appropriated ing from the Bank to assess the project’s to carry out the loan program under sub- performance. cilities as required under the act and (c) REPORTS TO CONGRESS.—At the end of section (b). by subsequent Executive orders. On each fiscal year, the Secretary shall submit (b) LOAN PROGRAM.— June 3, 1997, the Secretary of Energy, to Congress a report on the operations of the (1) IN GENERAL.—In accordance with sec- Mr. Pena˜ released that study. It docu- tion 6, the Secretary shall establish a pro- Bank, including a statement of the total re- ments a need for a $5.7 billion financial ceipts into the Bank, and the total expendi- gram to loan amounts from the Bank to any investment between 1996 and 2005 to agency that submits an application satisfac- tures from the Bank to each agency. SEC. 8. AUTHORIZATION OF APPROPRIATIONS. meet the Energy Policy Act and Execu- tory to the Secretary in order to finance an tive order goals, a value which could energy efficiency project. There are authorized to be appropriated vary from a low of $4.4 billion to a high (2) PERFORMANCE CONTRACTING FUNDING.— such sums as are necessary to carry out this To the extent practicable, an agency shall Act. of $7.1 billion given variability in both not submit a project for which performance Mr. FEINGOLD. Mr. President, I am energy and water investment require- contracting funding is available. delighted to join with my colleague, ments. (3) PURPOSES OF LOAN.— the senior Senator from Wisconsin [Mr. The best estimate, according to the (A) IN GENERAL.—A loan under this section KOHL] as an original co-sponsor of the same study of the total Federal fund- may be made to pay the costs of— Federal Energy Bank Act. ing available to spend on energy and (i) an energy efficiency project; or The idea of the Federal Government water efficiency improvements from (ii) development and administration of a various sources, including direct agen- performance contract. leading by example in the area of en- (B) LIMITATION.—An agency may use not ergy efficiency has made sense to me cy appropriations, energy savings per- more than 15 percent of the amount of a loan for a long time, so much so, in fact, formance contracts, and utility de- under subparagraph (A)(i) to pay the costs of that in campaigning for the Senate in mand-side management programs, and administration and proposal development 1992, I included energy efficiency in my appropriations to the Federal energy (including data collection and energy sur- campaign platform. I proposed an 82- efficiency fund, to the Federal Govern- veys). point plan to reduce the deficit, a se- ment to meet those needs over the (4) REPAYMENTS.— ries of specific spending reductions and same time period is $3.7 billion. Thus, (A) IN GENERAL.—An agency shall repay to under DOE’s best estimate, at the Fed- the Bank the principal amount of the energy revenue changes which, if enacted in efficiency project loan plus interest at a rate sum total, would have eliminated the eral level we face a potential shortfall determined by the President, in consultation deficit. of funds necessary to achieve our Fed- with the Secretary and the Secretary of the Among those items, as I was a can- eral energy and water conservation ob- Treasury. didate for office after the passage of jectives of $2 billion. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11771 In order to address this shortfall, I unique opportunity for Senate col- into account in fashioning government am pleased joining as a cosponsor of leagues to support legislation that is program policies. It is time for similar this legislation to create a Federal en- both fiscally responsible and environ- recognition of this factor in gauging ergy revolving fund or ‘‘energy bank.’’ mentally sound. Hawaii’s ability to support its health Some in this body may be concerned care programs. During consideration of that the existence of the current Fed- By Mr. AKAKA (for himself and the Balanced Budget Act this past eral energy efficiency fund alleviates Mr. INOUYE): summer, the Senate included a provi- the need for additional Federal con- S. 1376. A bill to increase the Federal sion increasing Alaska’s FMAP rate to servation investment. The problem medical assistance percentage for Ha- 59.8 percent for the next 3 years. Set- with the current fund, which operates waii to 59.8 percent; to the Committee ting a higher match rate as was done as a grant program for agencies to on Finance. for Alaska would still leave Hawaii make efficiency improvements, is that THE HAWAII FEDERAL MEDICAL ASSISTANCE with a lower FMAP rate than a major- it does not contribute to the replenish- PERCENTAGE ADJUSTMENT ACT OF 1997 ity of the States, but would better rec- ment of capital resources because it Mr. AKAKA. Mr. President, I rise ognize Hawaii’s ability to pay its fair does not have to be paid back and is today to introduce legislation to adjust share of the costs of the Medicaid pro- therefore dependent upon appropria- the Federal medical assistance per- gram. tions. centage [FMAP] rate for Hawaii to re- Despite the high cost of living, the Under the legislation, I join in co- flect more fairly the State’s ability to Harvard-Moynihan study finds that Ha- sponsoring with my colleague from bear its share of Medicaid payments. I waii also has one of the highest pov- Wisconsin today, Federal agencies will am pleased that my colleague, the sen- erty rates in the Nation. The State’s be required, in fiscal years 1998–2000, to ior Senator from Hawaii, Senator 16.9 percent poverty rate is ranked deposit an amount equal to 5 percent of INOUYE, has joined me as a sponsor of eighth in the country, compared to the their total utility payments in the pro- this measure. national average of 14.7 percent. These The Federal share of Medicaid pay- ceeding fiscal year to capitalize the higher cost levels are reflected in State ments varies depending on each State’s fund. After 2000, the Secretary of En- government expenditures and State ability to pay—wealthier States bear a ergy will determine an amount nec- taxation. Thus, on a per capita basis larger share of the cost of the program, essary to ensure that the fund meets State revenue and expenditures are far and thus have lower FMAP rates. Per its obligations. higher in Hawaii, as well as Alaska, capita income is used as the measure of Agencies will then be able to get a than in the 48 mainland States. The State wealth. Because per capita in- loan from the fund to finance effi- higher expenditure levels are necessary come in Hawaii is quite high, the ciency projects, which they will be re- to assure an adequate level of public State’s FMAP rate is at the lowest sponsible for repaying with interest. services which are more costly to pro- level—50 percent. Hawaii is one of only The projects must use off-the-shelf vide in these States. technologies and must be cost effec- a dozen States whose FMAP rate is at Of the top 10 States with the highest tive. the 50 percent level. My bill would in- The best part of this approach is that crease Hawaii’s FMAP rate from 50 per- poverty rates in the country, the Har- the technologies are required to have a cent to 59.8 percent. vard-Moynihan study finds that only 3 3-year pay back period, and, therefore, Because of our geographic location others have an FMAP rate between 50– this legislation achieves some modest and other factors, the cost of living in 60 percent. The other six States have savings for the taxpayer. CBO scores Hawaii greatly exceeds the cost of liv- FMAP rates of 65 percent and higher. this measure as saving $3 million over ing in the mainland States. Per capita Even more astonishing is that of the 5 years. income is a poor measure of a State’s top 10 States with the lowest real per In addition to savings for the tax- relative ability to bear the cost of Med- capita income, only Hawaii has a 50- payer, I am also pleased to assist the icaid services. An excellent analysis of percent FMAP rate. Federal Government in advancing what this issue is included in the 21st edition To bring equity to this situation, Ha- I believe to be an important part of our of ‘‘The Federal Budget and the waii has sought an increase in its overall strategy to combat greenhouse States’’, a joint study conducted by the FMAP rate over the past several years. gas emissions. As many in the body are Taubman Center for State and local Just as we did for Alaska this past aware, President Clinton announced Government at Harvard University’s summer, Hawaii should be included in his plan for meeting the challenge of John F. Kennedy School of Govern- this long-warranted change, as the global climate change on October 22, ment and the office of U.S. Senator same factors justifying an increase for 1997, in preparation for negotiating DANIEL PATRICK MOYNIHAN. According Alaska apply to Hawaii. Recognition of meetings in Bonn, Germany on a new to the study, if per capita income is this point was made by House and Sen- protocol to the Climate Convention. measured in real terms, Hawaii ranks ate conferees to the Balanced Budget Among the items the President cited 47th at $19,755 compared to the na- Act. The conferees, on page 879 of the was the need to do more in the area of tional average of $24,231. This sheds a conference report, note that poverty federal energy management. Aggres- totally different light on the State’s fi- guidelines for Alaska and Hawaii are sive energy management can reduce nancial status. different than those for the rest of the carbon emissions from the activities of The cost of living in Honolulu is 83 Nation, yet there is no variation from the Federal Government, which, the percent higher than the average of the the national calculation in the FMAP. President indicated, has the Nation’s metropolitan areas tracked by the U.S. The conferees correctly noted that largest energy bill at almost $8 billion Census Bureau, based on 1995 data. Re- comparable adjustments are generally per year. The President specifically cent studies have shown that for the made for Alaska and Hawaii. stated that there is a need to improve State as a whole, the cost of living is The case for an FMAP increase is es- federal procurement of energy efficient more than one-third higher than the pecially compelling in Hawaii, which technologies, and this measure is a rest of the U.S. In fact, Hawaii’s Cost has a proud history of providing essen- positive, proactive measure to ensure of Living Index ranks it as the highest tial health services in an innovative that federal agencies specifically set in the country. Some government pro- and cost-effective manner. That com- aside funds to achieve this goal. The grams take the high cost of living in mitment is not easy to fulfill. Unlike senior Senator from Wisconsin [Mr. Hawaii into account and funding is ad- most States, for example, Hawaii’s Aid KOHL] and I look forward to working justed accordingly. These include Med- to Families with Dependent Children/ with the administration to advance icare prospective payment rates, food Temporary Assistance for Needy Fami- this legislation as a piece of the coun- stamp allocations, school lunch pro- lies [AFDC/TANF] caseloads have been try’s overall greenhouse gas reductions grams, housing insurance limits, and increasing dramatically. In Hawaii, our strategy. military living expenses. caseload has risen by 21 percent since In conclusion, I look forward to These examples reflect the recogni- 1994 compared to a national decline of working with my senior Senator on tion that the higher cost of living in 23 percent during this same period. this issue. I believe that this is a noncontiguous States should be taken Since TANF block grants are based on S11772 CONGRESSIONAL RECORD — SENATE November 5, 1997 historical spending levels, the in- (2) payments made on a capitation or other This report found that the U.S. Govern- creased demand has placed extreme risk-basis for coverage occurring under plans ment was aware that the Nazi mint pressure on State resources. under such titles on or after such date; and took gold stolen from European central Hawaii has sought to maintain a so- (3) payments attributable to DSH allot- ments for Hawaii determined under section banks and melted it together with gold cial safety net while striving for more 1923(f) of such Act (42 U.S.C. 1396r–4(f)) for obtained in horrible fashion—from efficient delivery of government serv- fiscal years beginning with fiscal year 1998. tooth-fillings, wedding bands and other ices. The most striking example is the items seized from death camp victims. QUEST Medical Assistance Program, By Mr. DEWINE (for himself, Mr. Last Sunday’s New York Times de- which operates under a Federal waiver. MOYNIHAN, Mr. HATCH, Mr. tailed newly released Government doc- QUEST has brought managed care and D’AMATO, Mr. DODD, Mr. KOHL, uments that described how the Federal broader coverage to the State’s other- Mr. COVERDELL, Mr. KENNEDY, Reserve Bank of New York had melted wise uninsured populations. At the Mr. INOUYE, Mr. LIEBERMAN, down and recast hundreds of Nazi-held same time, Hawaii is the only State Ms. SNOWE, Mr. HUTCHINSON, gold bars. According to the released whose employers guarantee health care Mr. THURMOND, Mr. MCCAIN, records, the U.S. Government knew coverage to every full-time employee, a Mr. SHELBY, Mr. CAMPBELL, and that a good portion of this gold had further example of Hawaii’s commit- Mr. WYDEN): been looted from the Netherlands and ment to a strong social support sys- S. 1379. A bill to amend section 552 of Belgium. It is not known if any of tem. title 5, United States Code, and the Na- these bars contained gold from Holo- There is a particularly strong need tional Security Act of 1947 to require caust victims, or to what extent the for a more suitable FMAP rate for Ha- disclosure under the Freedom of Infor- U.S. Government knew it. waii now. The State has not partici- mation Act regarding certain persons, Mr. President, earlier today, at a pated in the economic growth that has disclose Nazi war criminal records press conference to announce the intro- benefitted most of the rest of the Na- without impairing any investigation or duction of this legislation, I had on dis- tion. Hawaii’s unemployment rate is prosecution conducted by the Depart- play several aerial U.S. intelligence above the national average and State ment of Justice or certain intelligence photographs taken in 1944. The pictures tax revenues have fallen short of pro- matters, and for other purposes; to the were of Auschwitz, with prisoners jected estimates. The need to fund 50 Committee on the Judiciary. being led to the gas chambers. These percent of the cost of the Medicaid pro- THE NAZI WAR CRIMES DISCLOSURE ACT pictures were discovered by photo ana- gram puts an increasing strain on the Mr. DEWINE. Mr. President, I am lysts from the Central Intelligence State’s resources. pleased to be part of a bipartisan group Agency in 1978. They confirm what we For all of these reasons, the FMAP of Senators, led by my friend from New had heard from the Polish underground rates for Hawaii should be adjusted to York, Senator MOYNIHAN, to introduce that a death camp did in fact exist at reflect more equitably the State’s abil- the Nazi War Crimes Disclosure Act. Auschwitz. They also demonstrated ity to support the Medicaid program. Passage of this legislation will lift the that our Government had photographs This will assure that the special prob- last remaining veils of secrecy on one of these camps as these atrocities were lem of the noncontiguous States is of the darkest periods in human his- occurring. dealt with in a principled manner. I be- tory. These pictures tell a grisly story. lieve it is also important to point out the Nazi War Crimes Disclosure Act How many more exist? With our legis- that based on Hawaii’s current Medic- represents what I hope will be the cul- lation, we intend to answer that ques- aid spending level of approximately mination of work begun in the last tion. $700 million, each percentage point in- Congress to release U.S. Government- So, the fact is, the dark tragedy of crease in our FMAP rate would provide held records of Nazi war criminals, the the Nazi Holocaust, which ended more approximately $7 million annually in Nazi Holocaust, and the trafficking of than 60 years ago, has been unfolding additional Federal funds. Thus, the Nazi-held assets. long after these tragic events occurred cost of enhancing the State’s FMAP Just 2 years ago, we celebrated the and is still unfolding with each new re- rate would be relatively modest. 50th anniversary of the end of the Sec- lease of information. I urge my colleagues in the Senate to ond World War, and with it, the Nazis’ Both Congress and the President support an upward adjustment in Ha- death grip on an entire continent. have taken action to promote the re- waii’s Federal medical assistance per- Since that time, searingly detailed ac- lease of Government-held records dur- centage. counts of the Nazi Holocaust have ing this tragic era. On April 17, 1995, Mr. President, in closing, I ask unan- come to our attention. the President issued an Executive imous consent that the text of the bill We have learned so much. Yet, if the order calling for the release of national be printed in the RECORD. last few years are any indication, we security data and information older There being no objection, the bill was still have so much more to learn. than 25 years. Last year, thanks to the ordered to be printed in the RECORD, as After the fall of Communist rule, tireless efforts of my friend from New follows: Russia and several former Soviet-bloc York, Senator MOYNIHAN and Rep- S. 1376 nations opened volumes of secret files resentative CAROLYN MALONEY and sev- Be it enacted by the Senate and House of Rep- on Nazi war crimes. Argentina has co- eral others, Congress passed a sense-of- resentatives of the United States of America in operated in the public release of its the-Congress resolution, which stated Congress assembled, files. British Government records are that any U.S. Government agencies SECTION 1. INCREASED FMAP FOR HAWAII. being declassified and made available should make public any records in its (a) INCREASED FMAP.—The first sentence of section 1905(b) of the Social Security Act for public scrutiny. And over the past possession about individuals who are (42 U.S.C. 1396d(b)), as amended by section year, Swiss banks and the Swiss Gov- alleged to have committed Nazi war 4725 of the Balanced Budget Act of 1997 (Pub- ernment have been under intense inter- crimes. The President agreed, noting lic Law 105–33; 111 Stat. 418), is amended— national pressure to make a full ac- that learning the remaining secrets (1) by striking ‘‘and (3)’’ and inserting ‘‘, counting of unclaimed funds belonging about the Holocaust are in the clear (3)’’; and to Holocaust victims, as well as Nazi public interest. (2) by inserting before the period at the end assets that may have once belonged to The Nazi War Crimes Disclosure Act the following: ‘‘, and (4) for purposes of this is designed to put the concerns ex- title and title XXI, the Federal medical as- Holocaust victims. sistance percentage for Hawaii shall be 59.8 Mr. President, here at home, our own pressed by the last Congress into percent’’. Government has been gradually mak- strong action. What our bill would do (b) EFFECTIVE DATE.—The amendments ing records available about what it is amend the Freedom of Information made by subsection (a) shall apply to— knew of Nazi-related activities and Act to establish a presumption that (1) items and services furnished on or after atrocities. Earlier this year, a Govern- Nazi war criminal records are to be October 1, 1997, under— ment-conducted study revealed new in- made available to the public. This (A) a State plan or under a waiver of such plan under title XIX; and formation about what the U.S. Govern- means that all materials would be re- (B) a State child health plan under title ment knew regarding the transfer and quired to be released in their entirety XXI of such Act; flow of funds held by Nazi officials. unless a Federal agency head concludes November 5, 1997 CONGRESSIONAL RECORD — SENATE S11773 that the release of all or part of these Together, with this kind of biparti- cordance with subsection (a) shall be re- records would compromise privacy or san support, I am hopeful we can move leased in their entirety. national security interests. The agency this legislation quickly through Con- ‘‘(C) An agency head may exempt from re- lease under subparagraph (B) specific infor- head must notify Congress of any de- gress and to the President early next mation, the release of which should be ex- termination to not release records. year. As a member of the Intelligence pected to— To facilitate this process, the bill Committee, I intend to make this a pri- ‘‘(i) constitute a clearly unwarranted inva- would establish the Nazi War Criminal ority issue—so that people from my sion of personal privacy; Records Interagency Working Group. State and across our Nation can have ‘‘(ii) reveal the identity of a confidential This working group would to the great- access to the most complete inventory human source, or reveal information about est extent possible locate, identify, in- of U.S. Government records on the Hol- the application of an intelligence source or ventory, declassify, and make available ocaust. The clock is running, and time method, or reveal the identity of a human intelligence source when the unauthorized for the public all Nazi war records held is running out for so many victims of disclosure of that source would clearly and by the United States. the Holocaust. They, and history itself, demonstrably damage the national security This pro-active search is necessary deserve to know as much as possible interests of the United States; because a full Government search and about this tragic chapter in the story ‘‘(iii) reveal information that would assist inventory has never been completed. of humanity. in the development or use of weapons of For example, some documents that sur- Mr. President, I ask unanimous con- mass destruction; faced this spring were found in hold- sent that the text of the bill be printed ‘‘(iv) reveal information that would impair United States cryptologic systems or activi- ings related to Southeast Asia. in the RECORD. Our bill would be targeted toward ties; There being no objection, the bill was ‘‘(v) reveal information that would impair two classes of Nazi-related materials: ordered to be printed in the RECORD, as the application of state-of-the-art tech- First, war crimes information regard- follows: nology within a United States weapon sys- ing Nazi persecutions; and second, any S. 1379 tem; information related to transactions in- Be it enacted by the Senate and House of Rep- ‘‘(vi) reveal actual United States military volving assets of Holocaust and other resentatives of the United States of America in war plans that remain in effect; Nazi victims. Congress assembled, ‘‘(vii) reveal information that would seri- In summary, what we are trying to SECTION 1. SHORT TITLE. ously and demonstrably impair relations be- do with this bill is strike a clear bal- This Act may be cited as the ‘‘Nazi War tween the United States and a foreign gov- ance between our Government’s legiti- Crimes Disclosure Act’’. ernment, or seriously and demonstrably un- dermine ongoing diplomatic activities of the mate privacy and national security in- SEC. 2. REQUIREMENT OF DISCLOSURE UNDER United States; terests and the people’s desire to know FREEDOM OF INFORMATION RE- GARDING PERSONS WHO COMMIT- ‘‘(viii) reveal information that would clear- the truth about Nazi atrocities. These TED NAZI WAR CRIMES. ly and demonstrably impair the current abil- records, once released, will be held in a (a) IN GENERAL.—Section 552 of title 5, ity of United States Government officials to repository at the National Archives. United States Code, is amended— protect the President, Vice President, and This bill is a bipartisan effort to en- (1) in subsection (a)(4)(B) in the second sen- other officials for whom protection services, sure the Federal Government has done tence, by inserting ‘‘or subsection (h)’’ after in the interest of national security, are au- all it can to ensure Holocaust victims ‘‘subsection (b)’’; and thorized; (2) by inserting after subsection (g) the fol- ‘‘(ix) reveal information that would seri- and their families can obtain the an- ously and demonstrably impair current na- swers they need. lowing: ‘‘(h)(1) For the purposes of this subsection, tional security emergency preparedness Again, this bill is the culmination of the term ‘Nazi war criminal records’ means plans; or years of tireless work by a number of records or portions of records that— ‘‘(x) violate a statute, treaty, or inter- leaders. First, I want to pay special ‘‘(A) pertain to any person as to whom the national agreement. tribute to the Senators from New United States Government, in its sole discre- ‘‘(D) In applying exemptions (ii) through York—both have worked tirelessly on tion, has determined there exists reasonable (x) of subparagraph (C), there shall be a pre- sumption that the public interest in the re- Holocaust related legislation for years. grounds to believe that such person, during the period beginning on March 23, 1933, and lease of Nazi war criminal records outweighs Senator MOYNIHAN has been a leader in the damage to national security that might the drive to declassify U.S. Govern- ending on May 8, 1945, under the direction of, or in association with— reasonably be expected to result from disclo- ment records and a well-respected his- ‘‘(i) the Nazi government of Germany; sure. The agency head, as an exercise of dis- torian. He championed the release of ‘‘(ii) any government in any area occupied cretion, may rebut this presumption with re- the so-called VENONA cables that con- by the military forces of the Nazi govern- spect to a Nazi war criminal record, or por- firmed that the Soviet Union had an ment of Germany; tion thereof, based on an exemption listed in active spy network that had penetrated ‘‘(iii) any government established with the subparagraph (C). The exercise of this discre- assistance or cooperation of the Nazi govern- tion shall be promptly reported to the com- our Government. I am pleased to be mittees of Congress with appropriate juris- working with Senator MOYNIHAN on a ment of Germany; or ‘‘(iv) any government which was an ally of diction. similar endeavor—the cataloging and ‘‘(E) This subsection shall not apply to the Nazi government of Germany, declassification of as many World War records— II documents on the Holocaust as pos- ordered, incited, assisted, or otherwise par- ‘‘(i) related to or supporting any active or ticipated in the persecution of any person be- sible. inactive investigation, inquiry, or prosecu- cause of race, religion, national origin, or po- tion by the Office of Special Investigations Senator D’AMATO has worked to litical opinion; or of the Department of Justice; or make public scores of Swiss bank ‘‘(B) pertain to any transaction as to which ‘‘(ii) in the possession, custody or control records and lost accounts of Holocaust the United States Government, in its sole of that office.’’. victims. His efforts inspired us to re- discretion, has determined there exists rea- (b) INAPPLICABILITY OF NATIONAL SECURITY draft our legislation to ensure the Fed- sonable grounds to believe— ACT OF 1947 EXEMPTION.—Section 701 of the eral Government releases records relat- ‘‘(i) involved assets taken from persecuted National Security Act of 1947 (50 U.S.C. 431) ed to the trafficking of Nazi-held as- persons during the period beginning on is amended— March 23, 1933, and ending on May 8, 1945, by, (1) by redesignating subsections (e) and (f) sets. under the direction of, on behalf of, or under This bill has the support of the chair- as subsections (f) and (g), respectively; and authority granted by the Nazi government of (2) by inserting after subsection (d) the fol- men of the Judiciary and Intelligence Germany or any nation then allied with that lowing: Committees—respectively, my friend government; and ‘‘(e) Subsection (a) shall not apply to any from Utah, Senator HATCH, and my ‘‘(ii) such transaction was completed with- operational file, or any portion of any oper- friend from Alabama, Senator SHELBY. out the assent of the owners of those assets ational file, that constitutes a Nazi war Mr. President, I also would be remiss or their heirs or assigns or other legitimate criminal record under section 552(h) of title if I did not mention my friend from representatives. 5, United States Code.’’. ‘‘(2)(A) Notwithstanding subsection (b), Wisconsin, Senator KOHL, who serves SEC. 3. INTERAGENCY INVENTORY OF NAZI WAR this subsection shall apply to Nazi war CRIMINAL RECORDS. with me on the Antitrust Subcommit- criminal records. (a) DEFINITIONS.—In this section the term— tee on the Judiciary Committee. He ‘‘(B) Subject to subparagraphs (C), (D), and (1) ‘‘agency’’ has the meaning given such has brought insight on this issue that (E), Nazi war criminal records that are re- term under section 551 of title 5, United none of us has. sponsive to a request for records made in ac- States Code; S11774 CONGRESSIONAL RECORD — SENATE November 5, 1997 (2) ‘‘Interagency Group’’ means the Nazi in Nazi war crimes. This bill, which keeping their knowledge and intentions se- War Criminal Records Interagency Working Senator DEWINE has carefully crafted, cret. Bureaucratic administration always Group established under subsection (b); builds on our original measure by ex- tends to be an administration of ‘‘secret ses- (3) ‘‘Nazi war criminal records’’ has the panding its scope to include informa- sions’’; in so far as it can, it hides its knowl- meaning given such term under section edge and action from criticism. 552(h)(1) of title 5, United States Code (as tion regarding stolen assets of the vic- The pure interest of the bureaucracy in added by section 2(a)(2) of this Act); and tims of Nazi war crimes, and by requir- power, however, is efficacious far beyond (4) ‘‘record’’ means a Nazi war criminal ing a Governmentwide search of those areas where purely functional interests record. records to ensure the release of as make for secrecy. The concept of the ‘‘offi- (b) ESTABLISHMENT OF INTERAGENCY many relevant documents as possible. cial secret’’ is the specific invention of bu- GROUP.— A similar search for information re- reaucracy, and nothing is so fanatically de- (1) IN GENERAL.—Not later than 30 days garding Nazi assets was recently con- fended by the bureaucracy as this attitude, after the date of enactment of this Act, the ducted under the direction of Stuart which cannot be substantially defended be- President shall establish the Nazi War Crimi- yond these specifically qualified areas. nal Records Interagency Working Group. Eizenstat, with significant results. Ideally, documents regarding Nazi What we traditionally think of in (2) MEMBERSHIP.—The President shall ap- this country as regulation concerns point to the Interagency Group the heads of war crimes would be made available to agencies who the President determines will the public without further legislation how citizens are to behave. Whereas most completely and effectively carry out and without having to go through the public regulation involves what the cit- the functions of the Interagency Group with- slow process involved in getting infor- izen may do, secrecy concerns what in the time limitations provided in this sec- mation through the Freedom of Infor- that citizen may know. And the citizen tion. The head of an agency appointed by the mation Act [FOIA]. Unfortunately, this does not know what may not be known. President may designate an appropriate offi- As our Commission stated: ‘‘Americans cer to serve on the Interagency Group in lieu is not the case. Researchers seeking in- formation on Nazi war criminals are are familiar with the tendency to over- of the head of such agency. regulate in other areas. What is dif- (3) INITIAL MEETING.—Not later than 90 denied access to relevant materials in days after the date of enactment of this Act, the possession of the United States ferent with secrecy is that the public the Interagency Group shall hold an initial Government, even when the disclosure cannot know the extent or the content meeting and begin the functions required of these documents no longer poses a of the regulation.’’ under this section. threat to national security—if indeed Thus, secrecy in the ultimate mode (c) FUNCTIONS.—Not later than 1 year after of regulation; the citizen does not even the date of enactment of this Act, the Inter- such disclosure ever did. Perhaps the most important provi- know that he or she is being regulated. agency Group shall, to the greatest extent It is a parallel regulatory regime with possible consistent with section 552(h)(2) of sion contained in the legislation is the title 5, United States Code (as added by sec- balancing test. This requires that a far greater potential for damage if it tion 2(a)(2) of this Act)— ‘‘there shall be a presumption that the malfunctions. In our democracy, where (1) locate, identify, inventory, recommend public interest in the release of Nazi the free exchange of ideas is so essen- for declassification, and make available to war criminal records outweighs the tial, it can be suffocating. the public at the National Archives and damage to national security that We must develop what might be Records Administration, all Nazi war crimi- might reasonably be expected to result termed a competing ‘‘culture of open- nal records of the United States; from disclosure.’’ The provision is in ness’’ fully consistent with our inter- (2) coordinate with agencies and take such ests in protecting national security, actions as necessary to expedite the release keeping with the report of the Commis- of such records to the public; and sion on Protecting and Reducing Gov- but in which power and authority are (3) submit a report to Congress describing ernment Secrecy which recommended no longer derived primarily from one’s all such records, the disposition of such that such a balancing test be applied in ability to withhold information from records, and the activities of the Interagency all classification decisions. others in Government and the public at Group and agencies under this section. The Commission on Protecting and large. SEC. 4. EXPEDITED PROCESSING OF REQUESTS Reducing Government Secrecy was the The Nazi War Crimes Disclosure Act FOR NAZI WAR CRIMINAL RECORDS. second statutory examination of Gov- is in keeping with the work of the (a) DEFINITIONS.—In this section, the Commission on Protecting and Reduc- term— ernment secrecy. I was honored to (1) ‘‘Nazi war criminal record’’ has the Chair the Commission; Representative ing Government Secrecy. With the meaning given the term under section COMBEST served as vice-chairman. Also passing of time it becomes ever more 552(h)(1) of title 5, United States Code (as serving on the Commission were John important to document Nazi war added by section 2(a)(2) of this Act); and Deutch, Martin Faga, John Podesta, crimes, lest the enormity of those (2) ‘‘requester’’ means any person who was and Samuel Huntington. We presented crimes be lost to history. The greater persecuted in the manner described under our report to the President in March, access which this legislation provides section 552(h)(1)(A) of title 5, United States and the congressional members of the will add clarity to this important ef- Code (as added by section 2(a)(2) of this Act), fort. I applaud those researchers who who requests a Nazi war criminal record. Commission introduced legislation to (b) EXPEDITED PROCESSING.—For purposes implement the recommendations of the continue to pursue this important of expedited processing under section Commission in May. work. 552(a)(6)(E) of title 5, United States Code, We have welcomed the many edi- I would like to thank Representative any requester of a Nazi war criminal record torials and feature articles supporting MALONEY for her original work on this shall be deemed to have a compelling need our efforts as, in the words of the Sac- subject in the House of Representatives for such record. ramento Bee, a ‘‘sensible, much-needed and I would also thank Senator SEC. 5. EFFECTIVE DATE. proposal for reforming runaway classi- DEWINE for joining me in this effort The amendments made by this Act shall here in the Senate. apply to requests under section 552 of title 5, fication of secrets by the federal gov- United States Code (known as Freedom of In- ernment.’’ And Albany’s Times Union Mr. KOHL. Mr. President, I am formation Act requests) received by an agen- assessment that our bill represents a pleased to be an original cosponsor of cy after the expiration of the 90-day period ‘‘bipartisan effort * * * to make more the Nazi War Crimes Disclosure Act. I beginning on the date of enactment of this government documents accessible to want to thank Senator DEWINE and Act. the public and, in the process, make commend him for taking the lead on Mr. MOYNIHAN. Mr. President, government more accountable.’’ this important issue. today we introduce a revised War Our’s is a report that, I believe, sets This bill demonstrates America’s Crimes Disclosure Act which Senators out a new framework for how to think commitment to the same historical D’AMATO, DODD and I originally spon- about Government secrecy. Beginning honesty that we are demanding of sored in the 104th Congress as a com- with the concept that secrecy should Switzerland and other countries only panion to a measure introduced by be understood as a form of Government now facing their role in the atrocities Representative MALONEY. regulation. In the words of the German of World War II. It is not enough for us The measure is a simple one. It re- sociologist Max Weber, writing some to talk about disclosure by others. We quires the disclosure of information eight decades ago: need to practice it too. If there are se- under the Freedom of Information Act Every bureaucracy seeks to increase the crets relating to the presence of Nazi regarding individuals who participated superiority of the professionally informed by war criminals in the United States, or November 5, 1997 CONGRESSIONAL RECORD — SENATE S11775 if there is information that will be cy head exercises his or her authority ducing the Charter School Expansion helpful in identifying assets of Holo- to block the release of information, the Act of 1997. caust victims, or even evidence of decision is subject to judicial review. This bill builds on the great success other governments collaborating with It is difficult to imagine what knowl- of the original charter school legisla- the Nazis, let’s open these files and re- edge would be subject to these protec- tion which Senator LIEBERMAN intro- veal these secrets before an entire gen- tions so many years after the fact. Yes, duced in 1994. The Federal Charter eration of survivors is gone. there may be information which makes School Grant Program provided seed This bill creates a presumption in us feel uncomfortable. There is already money to charter school operators to favor of the public interest in learning information about the extent to which help them cover the startup costs of all there is to learn about Nazi war the U.S. Government knew about what beginning a charter school. In the last crimes and requires a proactive search- was going on during the war in the 3 years, the number of charter schools ing of Government files for relevant Nazi death camps. We must not be in operation around the country has documents. We have an obligation to afraid of what we may learn. The only tripled, with more than 700 charter find this information and to dissemi- ones who need fear are the perpetrators schools now in 23 States. nate it. Although the Holocaust hap- of these vicious acts who have escaped The purpose of this bill is to further pened more than 50 years ago, we are scrutiny until now, for there are still encourage the growth of high-quality now seeing countries and individuals Nazi war criminals at large in this charter schools around the country. caught up in the maelstrom of World country and abroad. Armed with new This bill provides incentives to en- War II grappling with this difficult information, much like the informa- courage States to increase the number past. Much of the debate on these is- tion which may be available in our own of charter schools in their State. The sues has been triggered by recently re- files, courts around the world are com- bill also tightens the eligibility defini- leased information from Government pelling them to answer for their des- tions to better direct funds to those and other archives. picable acts. States who are committed to develop- For survivors, there is no legislation This legislation is targeted to infor- ing strong charter schools. To ensure that charter schools have that can erase the suffering they en- mation solely related to Nazi war enough funding to continue once their dured at the hands of the Nazis. As we crimes and to transactions involving doors are opened, this bill provides go about our day-to-day business, it is Nazi victims, yet it sets an important that charter schools get their fair easy to forget the horrific details of precedent in codifying a more narrow share of Federal programs for which what happened in Europe: the grue- set of privacy and national security ex- they are eligible, such as title 1 and some torture and deaths, the system- ceptions for the release of Government IDEA. atic extermination of people. However, information through the Freedom of This bill also increases the financing for those of us who were directly Information Act. These exceptions are options available to charter schools touched by the Holocaust, history is based on Executive Order 12958 which and allows them to utilize funds from very real. I grew up in the shadow of set the criteria for the release of infor- the title VI block grant program for this tragedy. When I was a child, my mation more than 25 years old. Unfor- startup costs. family worried daily about family tunately, we still have a long way to go And finally, the Secretary of Edu- members left behind in Europe during in ensuring that this more open stand- cation and each State education agen- the war. We constantly discussed what ard is uniformly applied to the release cy is directed to inform every school was or wasn’t happening, and when the of Government information. district about the charter school op- truth finally emerged, and all Ameri- I am pleased that Senator MOYNIHAN tion so that this educational alter- cans realized the extent of the tragedy, is one of the lead sponsors of this bill native will be an option for any parent it touched us even more. because he has been such an eloquent who is interested. It is only natural for American survi- spokesman against excessive secrecy. WHAT ARE CHARTER SCHOOLS? vors and their families to expect the His work with the Commission on Pro- Charter schools are independent pub- American Government to be as forth- tecting and Reducing Government Se- lic schools that have been freed from coming as possible. Although many crecy is truly commendable and I am onerous bureaucratic and regulatory survivors have gone on to live produc- pleased that this legislation is consist- burdens and able to design and deliver tive lives here in the United States, ent with the findings of the Commis- educational programs tailored to meet and around the world, they can never sion. Beyond shedding light on a dif- the needs of their students and their forget. Nor should we. ficult chapter in the history of human- communities. Many emerging democracies are now ity, this legislation can help foster a The individualized education avail- facing their pasts—through truth com- greater openness in the handling of able to students through charter missions and the like. It is tempting to Government information. schools makes this a very desirable want to look forward and to forget If we succeed, we will have left a leg- educational alternative. Charter events of long ago. But for these fragile acy of which we can all be proud. schools give families an opportunity to democracies, reckoning with the past choose the educational setting that is the key to ensuring a secure future. By Mr. COATS (for himself, Mr. best meet their child’s needs. For many We too must recognize that the open- LIEBERMAN, Mr. D’AMATO, and low-income families in particular, ness prescribed by this legislation only Mr. KERREY): charter schools provide their first op- makes our democracy stronger. S. 1380. A bill to amend the Elemen- portunity to select educational setting This legislation maintains protec- tary and Secondary Education Act of which is best for their child. tions for individuals from the unwar- 1965 regarding charter schools; to the These innovative charter schools are ranted invasion of their personal pri- Committee on Labor and Human Re- having tremendous academic success vacy, and it continues to provide ex- sources. serving the same population of stu- ceptions for the most urgent national THE CHARTER SCHOOL EXPANSION ACT OF 1997 dents who are struggling in more tradi- security and foreign policy interests. Mr. COATS. Mr. President, I am so tional public school settings. Several The difference between this bill and ex- pleased to join my good friend, Senator recent studies have highlighted the isting FOIA protections is that this bill LIEBERMAN, in introducing another bill success of charter schools around the firmly sets into law the public’s right which has as its primary aim the ex- country in serving at-risk students. A to know about Nazi war crimes and the pansion of educational opportunities study conducted by the Hudson Insti- disposition of Nazi assets, and if there for children. Senator LIEBERMAN has tute found dramatic improvement for is information that agencies insist on been a leader in promoting educational minority and low income students who keeping secret, the relevant congres- alternatives, and his efforts in the had been failing in their previous sional committees must be informed. charter school movement have contrib- school. These students are flourishing This will give us the opportunity to de- uted to the tremendous growth in the in the smaller, challenging environ- termine whether information dating so number of charter schools since 1994. I ments found in charter schools. far back should remain classified. Fi- commend him for his work in this area With results like these, it is no won- nally, the bill provides that if an agen- and am honored to join him in intro- der that some of the strongest support S11776 CONGRESSIONAL RECORD — SENATE November 5, 1997 for charter legislation comes from low- Among students who said they were SEC. 3. CHARTER SCHOOLS. income families. Low-income families failing at their previous school, more (a) PURPOSE.—Section 10301(b) of the Ele- not only have real educational choices, than half are now doing excellent or mentary and Secondary Education Act of but are actually needed in the charter good work. These gains were dramatic 1965 (20 U.S.C. 8061(b)) is amended— (1) in paragraph (1), by striking ‘‘and’’ school environment for everything for minority and low-income young- after the semicolon; from volunteering, to coaching, for sters, and were confirmed by their par- (2) in paragraph (2), by striking the period fundraising, and even teaching. This di- ents. and inserting ‘‘; and’’; and rect involvement of families is helping The example of these schools point to (3) by adding at the end the following: to build small communities centered important ways to improve and re- ‘‘(3) expanding the number of high-quality around the school. invent public education as a whole. The charter schools available to students across Charter schools can be started by implications from the success of char- the Nation.’’. anyone interested in providing a qual- ter schools indicate that successful (b) CRITERIA FOR PRIORITY TREATMENT.— ity education: Parents, teachers, Section 10302 of such Act of 1965 (20 U.S.C. public schools should be consumer-ori- 8062) is amended by adding at the end the fol- school administrators, community ented, diverse, results-oriented, and lowing: groups, businesses, and colleges can all professional places that also function ‘‘(e) PRIORITY TREATMENT.— apply for a charter. And, importantly, as mediating institutions in their com- ‘‘(1) IN GENERAL.— if these schools fail to deliver a high- munities. ‘‘(A) FISCAL YEARS 1998, 1999, AND 2000.—In quality education, they will be closed— The tremendous success of charter awarding grants under this part for any of either through a district or State’s ac- schools in the last 6 years gives me the fiscal years 1998, 1999, and 2000 from funds appropriated under section 10311 that are in countability measures or due to lack of great hope for the success of overall customers. Accountability is literally excess of $51,000,000 for the fiscal year, the education reform. The more than 700 Secretary shall give priority to States to the built in to the charter school process— charter schools in this country that extent that the States meet 1 or more of the a school’s charter must be complied have sprung up in such a short period criteria described in paragraph (2). with and unhappy parents and students of time provide solid evidence that par- ‘‘(B) SUCCEEDING FISCAL YEARS.—In award- can leave if they are not satisfied. ents are interested in improving their ing grants under this part for fiscal year 2001 In addition to the positive impact on children’s educational opportunities or any succeeding fiscal year from any funds the charter’s students and their fami- and they will do whatever it takes. appropriated under section 10311, the Sec- lies, the overall charter movement is retary shall give priority to States to the ex- With the introduction of this bill, the tent that the States meet 1 or more of the serving as a catalyst for change in the Charter School Expansion Act, Senator public schools. A foundational prin- criteria described in paragraph (2). LIEBERMAN and I hope to send a signal ‘‘(2) PRIORITY CRITERIA.—The criteria re- ciple of the charter concept is that fair to parents all across this country that ferred to in paragraph (1) are as follows: competition can stimulate improve- they are not alone in their struggle to ‘‘(A) The State has demonstrated signifi- ment. And improvement in public improve education for their children. cant progress in increasing the number of schools has been spurred around the We hope to ease their struggle by ena- charter schools in the period prior to the pe- riod for which a State educational agency or country due to the rapid growth of bling new charter schools to be devel- charter schools. eligible applicant applies for a grant under oped. More charter schools will result this part. Recently, several studies have been in greater accountability, broader released highlighting some of the suc- ‘‘(B) The State law regarding charter flexibility for classroom innovation, schools— cess of charter schools around the and ultimately more choice in public ‘‘(i) provides for at least 1 authorized pub- country. In May, the Department of education. I urge my colleagues to sup- lic chartering agency that is not a local edu- Education released its first formal re- port this bill and to increase edu- cational agency for each individual or entity port on its study of charter schools. cational opportunities for all children. seeking to operate a charter school pursuant Key first-year findings include: to such State law; or The two most common reasons for Mr. President, I ask unanimous con- ‘‘(ii) in the case of a State in which local starting public charter schools are sent that the text of the bill be printed educational agencies are the only authorized flexibility from bureaucratic laws and in the RECORD. public chartering agencies, allows for an ap- regulations and the chance to realize There being no objection, the bill was peals process for the denial of an application for a charter school. an educational vision. ordered to be printed in the RECORD, as follows: ‘‘(C) The State law regarding charter In most States, charter schools have schools provides for the automatic waiver of a racial composition similar to state- S. 1380 most State and local education laws and reg- wide averages or have a higher propor- Be it enacted by the Senate and House of Rep- ulations, except those laws and regulations tion of minority students. resentatives of the United States of America in related to health, safety, and civil rights. Charter schools enroll roughly the Congress assembled, ‘‘(D) The State law regarding charter schools provides for periodic review and eval- same proportion of low income stu- SECTION 1. SHORT TITLE. dents, on average, as other public uation by the authorized public chartering This Act may be cited as the ‘‘Charter agency of each charter school to determine schools. School Expansion Act of 1997’’. whether the charter school is meeting or ex- Over the last 2 years, the Hudson In- SEC 2. INNOVATIVE CHARTER SCHOOLS. ceeding the academic performance require- stitute has undertaken its own study of Title VI of the Elementary and Secondary ments and goals for charter schools as set charter schools, entitled ‘‘Charter Education Act of 1965 (20 U.S.C. 7301 et seq.) forth under State law or the school’s char- Schools in Action.’’ Their research is amended— ter. team traveled to 14 States, visited 60 (1) in section 6201(a) (20 U.S.C. 7331(a))— ‘‘(f) AMOUNT CRITERIA.—In determining the schools, and surveyed thousands of par- (A) in paragraph (1)(C), by striking ‘‘and’’ amount of a grant to be awarded under this ents, teachers, and students. after the semicolon; part to a State educational agency, the Sec- Some of this study’s key findings in- (B) by redesignating paragraph (2) as para- retary shall take into consideration the clude: graph (3); and number of charter schools that will be cre- (C) by inserting after paragraph (1) the fol- ated under this part in the State.’’. Three-fifths of charter school stu- lowing: (c) APPLICATIONS.—Section 10303(b) of such dents report that their charter school ‘‘(2) support for planning, designing, and Act (20 U.S.C. 8063(b)) is amended— teachers are better than their previous initial implementation of charter schools as (1) by redesignating paragraph (2) as para- school’s teacher. described in part C of title X; and’’; and graph (3); and Over two-thirds of parents say their (2) in section 6301(b) (20 U.S.C. 7351(b))— (2) by inserting after paragraph (1) the fol- charter school is better than their (A) in paragraph (7), by striking ‘‘and’’ lowing: child’s previous schools with respect to after the semicolon; ‘‘(2) describe how the State educational class size, school size, and individual (B) by redesignating paragraph (8) as para- agency— attention. graph (9); and ‘‘(A) will inform each charter school in the (C) by inserting after paragraph (7) the fol- State regarding— Over 90 percent of teachers are satis- lowing: ‘‘(i) Federal funds that the charter school fied with their charter school’s edu- ‘‘(8) planning, designing, and initial imple- is eligible to receive; and cational philosophy, size, fellow teach- mentation of charter schools as described in ‘‘(ii) Federal programs in which the char- ers, and students. part C of title X; and’’. ter school may participate; November 5, 1997 CONGRESSIONAL RECORD — SENATE S11777 ‘‘(B) will ensure that each charter school the operation of charter schools are con- these battles are being waged, in the in the State receives the charter school’s sulted in the development of any rules or words of the great John Gardner, be- commensurate share of Federal education regulations required to implement this part, tween uncritical lovers and unloving funds that are allocated by formula; and as well as in the development of any rules or critics, those who would defend the sta- ‘‘(C) will disseminate best or promising regulations relevant to charter schools that practices of charter schools to each local are required to implement part A of title I of tus quo in public education at all costs educational agency in the State; and’’. the Elementary and Secondary Education and those who would attack it at the (d) NATIONAL ACTIVITIES.—Section 10305 of Act of 1965 (20 U.S.C. 6311 et seq.), the Indi- drop of a hat, with neither side doing such Act (20 U.S.C. 8065) is amended to read viduals with Disabilities Education Act (20 much listening. as follows: U.S.C. 1400 et seq.), or any other program ad- Making matters worse, the uncritical ‘‘SEC. 10305. NATIONAL ACTIVITIES. ministered by the Secretary that provides lovers have helped reduce this chal- ‘‘The Secretary shall reserve for each fiscal education funds to charter schools or regu- lenging, vitally important discussion year the lesser of 5 percent of the amount ap- lates the activities of charter schools. to a simplistic either-or equation. Ei- propriated to carry out this part for the fis- ‘‘SEC. 10308. RECORDS TRANSFER. ther you are for public education, cal year or $5,000,000, to carry out the follow- ‘‘State educational agencies and local edu- cational agencies, to the extent practicable, which means you subscribe to a certain ing activities: orthodoxy and dare not depart from it, ‘‘(1) To provide charter schools, either di- shall ensure that a student’s records and, if rectly or through State educational agen- applicable, a student’s individualized edu- or you are against it. Either you sub- cies, with— cation program as defined in section 602(11) scribe to a small set of educationally ‘‘(A) information regarding— of the Individuals with Disabilities Edu- correct methods of reform or you are ‘‘(i) Federal funds that charter schools are cation Act (20 U.S.C. 1401(11)), are trans- subverting public education as we eligible to receive; and ferred to a charter school upon the transfer know it. ‘‘(ii) other Federal programs in which char- of the student to the charter school, in ac- In my view, this shortsightedness is ter schools may participate; and cordance with applicable State law. shortchanging our children. Given how ‘‘(B) assistance in applying for Federal ‘‘SEC. 10309. PAPERWORK REDUCTION. many students are being served poorly education funds that are allocated by for- ‘‘To the extent practicable, the Secretary mula, including assistance with filing dead- and each authorized public chartering agen- by the status quo, particularly those lines and submission of applications. cy shall ensure that implementation of this living in urban areas who are trapped ‘‘(2) To provide for the completion of the 4- part results in a minimum of paperwork for in deadening and in some cases deadly year national study (which began in 1995) of any eligible applicant or charter school.’’. public schools, and given the crucial charter schools. (f) PART C DEFINITIONS.—Section 10310(1) of role that education will play in deter- ‘‘(3) To provide— such Act (as redesignated by subsection mining whether the American dream ‘‘(A) information to applicants for assist- (e)(1)) (20 U.S.C. 8066(1)) is amended— can be made real for those kids in the (1) in subparagraph (A), by striking ‘‘an en- ance under this part; information age, we have an obligation ‘‘(B) assistance to applicants for assistance abling statute’’ and inserting ‘‘a specific under this part with the preparation of appli- State statute authorizing the granting of to leave no policy stone unturned or cations under section 10303; charters to schools’’; untested and judge ideas by the simple, ‘‘(C) assistance in the planning and startup (2) in subparagraph (H), by inserting ‘‘is a unalloyed standard of what works. We of charter schools; school to which parents choose to send their must be open to trying any plan or pro- ‘‘(D) training and technical assistance to children, and that’’ before ‘‘admits’’; gram that offers the hope of better edu- existing charter schools; (3) in subparagraph (J), by striking ‘‘and’’ cation for our children. after the semicolon; ‘‘(E) information to applicants and charter That is why Senator COATS and I schools regarding gaining access to private (4) in subparagraph (K), by striking the pe- riod and inserting ‘‘; and’’; and have been advocating for some time capital to support charter schools; and that we experiment with private school ‘‘(F) for the dissemination of best or prom- (5) by adding at the end the following: ising practices in charter schools to other ‘‘(L) has a written performance contract choice, sponsoring a series of bills to public schools.’’. with the authorized public chartering agency set up pilot programs in our cities to (e) COMMENSURATE TREATMENT; RECORDS in the State.’’. see if giving low-income students the TRANSFER; PAPERWORK REDUCTION.—Part C (g) AUTHORIZATION OF APPROPRIATIONS.— chance to attend a private or faith- of title X of such Act (20 U.S.C. 8061 et seq.) Section 10311 of such Act (as redesignated by based school will enhance their learn- is amended— subsection (e)(1)) (20 U.S.C. 8067) is amended ing and force those failing public by striking ‘‘$15,000,000 for fiscal year 1995’’ (1) by redesignating sections 10306 and 10307 schools to improve. as sections 10310 and 10311, respectively; and and inserting ‘‘$100,000,000 for fiscal year 1998’’. And that is why today we want to (2) by inserting after section 10305 the fol- take this opportunity to express our lowing: (h) TITLE XIV DEFINITIONS.—Section 14101 of such Act (20 U.S.C. 8801) is amended— support for the growing public charter ‘‘SEC. 10306. FEDERAL FORMULA ALLOCATION (1) in paragraph (14), by inserting ‘‘, includ- DURING FIRST YEAR AND FOR SUC- school movement and to outline our CESSIVE ENROLLMENT EXPAN- ing a public elementary charter school,’’ plans to help make these innovative, SIONS. after ‘‘residential school’’; and independent programs the norm rather ‘‘For purposes of the allocation to schools (2) in paragraph (25), by inserting ‘‘, includ- than a novelty in this country. by the States or their agencies of funds ing a public secondary charter school,’’ after ‘‘residential school’’. I have been a long-time advocate of under part A of title I, and any other Federal the charter approach, which grants funds which the Secretary allocates to (i) CONFORMING AMENDMENT.—The matter States on a formula basis, the Secretary and preceding paragraph (1) of section 10304(e) of educators freedom from top-heavy bu- each State educational agency shall take such Act (20 U.S.C. 8064(e)) is amended by reaucracies and their redtape in ex- such measures not later than 6 months after striking ‘‘10306(1)’’ and inserting ‘‘10310(1)’’. change for a commitment to meet high the date of enactment of the Charter School Mr. LIEBERMAN. Mr. President, I academic standards. After visiting, this Expansion Act of 1997 as are necessary to en- rise today to join my good friend and week, with a group of passionate char- sure that every charter school receives the partner Senator COATS in introducing ter school operators and teachers at a Federal funding for which the charter school legislation that would speed the national conference here in town, I am is eligible not later than 5 months after the progress of what is arguably the most all the more convinced that charter charter school first opens, notwithstanding the fact that the identity and characteristics promising engine of education reform schools represent what may be the fu- of the students enrolling in that charter in America today, the charter school ture of public education. These folks school are not fully and completely deter- movement. are driving a grassroots revolution mined until that charter school actually Before discussing the legislation it- that is seeking to reinvent the public opens. The measures similarly shall ensure self, I think it’s important to talk first school and take it back to the future, that every charter school expanding its en- about the context in which it is being reconnecting public education to some rollment in any subsequent year of operation introduced and the ongoing debates of our oldest, most basic values—inge- receives the Federal funding for which the here in Congress over how best to im- nuity, responsibility, accountability— charter school is eligible not later than 5 prove our public schools and expand months after such expansion. and refocusing its mission on doing educational opportunities for all stu- what’s best for the child instead of ‘‘SEC. 10307. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS. dents. In listening to much of the back what’s best for the system. ‘‘To the extent practicable, the Secretary and forth recently, particularly about The results speak for themselves. shall ensure that administrators, teachers, efforts to promote a limited school Over the past 3 years, the number of and other individuals directly involved in choice program, it seems that too often public charter schools have more than S11778 CONGRESSIONAL RECORD — SENATE November 5, 1997 tripled, with more than 700 of them op- prove our schools and safeguard the descendant of an individual who conveyed, erating in 23 different States and the hopes of our children. This proposal land to the Army Corps of Engineers for use District of Columbia, and parents in has already generated bipartisan inter- in the Candy Lake project in Osage County, Oklahoma. turn have given these programs over- est both here in the Senate and the (3) SECRETARY.—The term ‘‘Secretary’’ whelmingly high marks for their re- House, the administration has ex- means the Secretary of the Army. sponsiveness to them as consumers. pressed its support, and we are optimis- SEC. 2. LAND CONVEYANCES. Broad-based studies done by the Hud- tic it will be passed next year over- (a) IN GENERAL.—The Secretary, acting son Institute and the Education De- whelmingly. through the Real Estate Division of the partment show that charters are effec- In closing, I would like to thank Sen- Tulsa District, Army Corps of Engineers, tively serving diverse populations, par- ator KERRY and Senator D’AMATO for shall convey, in accordance with this sec- tion, all right, title, and interest of the Unit- ticularly many of the disadvantaged joining Senator COATS and myself as ed States in and to the land acquired by the and at-risk children that traditional original cosponsors of this bill. I would United States for the Candy Lake project in public schools have struggled to edu- urge the rest of our colleagues, if they Osage County, Oklahoma. cate. And while it’s too soon to deter- have not yet already done so, to take a (b) PREVIOUS OWNERS OF LAND.— mine what impact charter schools are close look at some of the truly innova- (1) IN GENERAL.—The Secretary shall give a having on overall academic perform- tive charter school programs being run previous owner of land first option to pur- in your home States and around the chase the land described in subsection (a) ance, the early returns in places like that was owned by the previous owner of Massachusetts suggest that charters country. And I would ask you to join us land or by the individual from whom the pre- are succeeding where it matters most, in supporting this legislation to build vious owner of land is descended. in the classroom. on all the great work that’s being done (2) APPLICATION.— Perhaps most heartening of all, a re- at the State and local level and help us (A) IN GENERAL.—A previous owner of land cent survey done by the National chart a new course in education reform that desires to purchase the land described School Board Association found that in America. in subsection (a) that was owned by the pre- vious owner of land, or by the individual the charter movement is already hav- from whom the previous owner of land is de- ing a ripple effect that is being felt in By Mr. NICKLES: scended, shall file an application to purchase many local school districts. The NSBA S. 1381. A bill to direct the Secretary the land with the Secretary not later than report cites evidence that traditional of the Army to convey lands acquired 180 days after the official date of notice to schools are working harder to please for the Candy Lake project, Osage the previous owner of land under section 3. local families so they won’t abandon County, OK; to the Committee on Envi- (B) FIRST TO FILE HAS FIRST OPTION.—If them to competing charter schools, ronment and Public Works. more than 1 application is filed for a parcel of land described in subsection (a), first op- and that central administrators often THE CANDY LAKE LAND CONVEYANCE ACT OF 1997 tions to purchase the parcel of land shall be see charters as a powerful tool to de- Mr. NICKLES. Mr. President, today, allotted in the order in which applications velop new ideas and programs without I am introducing the Candy Lake Land for the parcel of land were filed. fearing regulatory roadblocks. Conveyance Act of 1997. The purpose of (3) IDENTIFICATION OF PREVIOUS OWNERS OF The most remarkable aspect of this this legislation is to direct the Sec- LAND.—As soon as practicable after the date movement may be that it has managed retary of the Army to convey lands ac- of enactment of this Act, the Secretary to bring together educators, parents, shall, to the extent practicable, identify quired for the Candy Lake project in each previous owner of land. community activists, business leaders, Osage County, OK, back to the original (4) CONSIDERATION.—Consideration for land and politicians from across the politi- landowners. conveyed under this subsection shall be the cal spectrum on common ground in Briefly, the U.S. Army Corps of Engi- fair market value of the land. support of a common goal to better neers acquired 3,657.45 acres of land in (c) DISPOSAL.—Any land described in sub- educate our children through more Osage County from 21 landowners for section (a) for which an application has not choice, more flexibility, and more ac- the purpose of constructing Candy been filed under subsection (b)(2) within the applicable time period shall be disposed of in countability in our public schools. In Lake. The project was not constructed, accordance with the Federal Property and these grassroots may lie the roots of a and in December 1996, the Corps of En- Administrative Services Act of 1949 (40 consensus for renewing the promise of gineers declared the Candy Lake prop- U.S.C. 471 et seq.). public education. erty excess to the needs of the Federal (d) EXTINGUISHMENT OF EASEMENTS.—All We want to build on this agreement Government. flowage easements acquired by the United and the successes of charter schools My legislation will give each of the 21 States for use in the Candy Lake project in and do what we can at the Federal landowners the option to purchase Osage County, Oklahoma, are extinguished. SEC. 3. NOTICE. level to encourage the growth of this their original property from the Fed- (a) IN GENERAL.—The Secretary shall no- movement. So today we will be intro- eral Government at fair market value. tify— ducing bipartisan legislation that will If a landowner, or their descendant, (1) each person identified as a previous strengthen the Federal investment in opts not to purchase their former prop- owner of land under section 2(b)(3), not later charter schools and help remove some erty, that land will be disposed of in than 30 days after identification, by United of the hurdles preventing charters from accordance with the Federal Property States mail; and flourishing in every State. (2) the general public, not later than 30 and Administrative Services Act of 1949 days after the date of enactment of this Act, Our bill, the Charter School Expan- (40 U.S.C. 471 et seq.). by publication in the Federal Register. sion Act, would revamp the Federal Mr. President, I ask unanimous con- (b) CONTENTS OF NOTICE.—Notice under this Charter School Grant Program to sent that the text of the bill be printed section shall include— make it more focused on helping States in the RECORD. (1) a copy of this Act; and local groups create new schools There being no objection, the bill was (2) information sufficient to separately and meet the President’s goal of creat- identify each parcel of land subject to this ordered to be printed in the RECORD, as Act; and ing 3,000 charters by the year 2000. We follows: (3) specification of the fair market value of want to increase funding for grants to S. 1381 each parcel of land subject to this Act. new schools, which help charter opera- Be it enacted by the Senate and House of Rep- (c) OFFICIAL DATE OF NOTICE.—The official tors meet the high costs of starting a resentatives of the United States of America in date of notice under this section shall be the school from scratch, and better target Congress assembled, later of— that aid to the States that are serious (1) the date on which actual notice is SECTION. 1. DEFINITIONS. mailed; or about expanding their charter pro- In this Act: (2) the date of publication of the notice in gram. Our hope is that these changes (1) FAIR MARKET VALUE.—The term ‘‘fair the Federal Register. market value’’ means the amount for which will give States that have been slow to f embrace the charter movement an in- a willing buyer would purchase and a willing seller would sell a parcel of land, as deter- ADDITIONAL COSPONSORS centive to get on board. mined by a qualified, independent land ap- In the near term, we feel this bill can praiser. S. 61 be a starting point for overcoming our (2) PREVIOUS OWNER OF LAND.—The term At the request of Mr. LOTT, the name partisan and ideological differences ‘‘previous owner of land’’ means a person (in- of the Senator from Alaska [Mr. MUR- and reaching a consensus on how to im- cluding a corporation) that conveyed, or a KOWSKI] was added as a cosponsor of S. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11779 61, a bill to amend title 46, United efforts to acquire, develop, or produce edition of the publication entitled ‘‘Our States Code, to extend eligibility for ballistic missiles. Flag’’, revised under the direction of the Joint Committee on Printing, shall be re- veterans’ burial benefits, funeral bene- S. 1334 fits, and related benefits for veterans of printed as a Senate document. At the request of Mr. BOND, the name (b) There shall be printed— certain service in the United States of the Senator from New Mexico [Mr. (1)(A) 250,000 copies of the publication for merchant marine during World War II. BINGAMAN] was added as a cosponsor of the use of the House of Representatives, dis- S. 191 S. 1334, a bill to amend title 10, United tributed in equal numbers to each Member; At the request of Mr. HELMS, the States Code, to establish a demonstra- (B) 51,500 copies of the publication for the name of the Senator from New Hamp- tion project to evaluate the feasibility use of the Senate, distributed in equal num- of using the Federal Employees Health bers to each Member; shire [Mr. SMITH] was added as a co- (C) 2,000 copies of the publication for the sponsor of S. 191, a bill to throttle Benefits program to ensure the use of the Joint Committee on Printing; and criminal use of guns. availablity of adequate health care for (D) 1,400 copies of the publication for dis- S. 791 Medicare- eligible beneficiaries under tribution to the depository libraries; or At the request of Mr. DASCHLE, the the military health care system. (2) if the total printing and production names of the Senator from Montana S. 1335 costs of copies in paragraph (1) exceed $150,000, such number of copies of the publi- At the request of Ms. SNOWE, the [Mr. BAUCUS] and the Senator from cation as does not exceed total printing and Iowa [Mr. HARKIN] were added as co- name of the Senator from California production costs of $150,000, with distribu- sponsors of S. 791, a bill to amend the [Mrs. BOXER] was added as a cosponsor tion to be allocated in the same proportion Internal Revenue Code of 1986 with re- of S. 1335, a bill to amend title 5, Unit- as in paragraph (1). spect to the treatment of certain ed States Code, to ensure that coverage f amounts received by a cooperative of bone mass measurements is provided SENATE CONCURRENT RESOLU- telephone company. under the health benefits program for Federal employees. TION 62—AUTHORIZING A PRINT- S. 887 ING At the request of Ms. MOSELEY- S. 1354 BRAUN, the name of the Senator from At the request of Mr. MCCAIN, the Mr. WARNER (for himself and Mr. ORD Connecticut [Mr. DODD] was added as a name of the Senator from Alaska [Mr. F ) submitted the following concur- cosponsor of S. 887, a bill to establish STEVENS] was added as a cosponsor of rent resolution; which was considered in the National Service the National S. 1354, a bill to amend the Commu- and agreed to: Underground Railroad Network to nications Act of 1934 to provide for the S. CON. RES. 62 Freedom program, and for other pur- designation of common carriers not Resolved by the Senate (the House of Rep- poses. subject to the jurisdiction of a State resentatives concurring), That (a) a revised edition of the brochure entitled ‘‘How Our S. 1084 commission as eligible telecommuni- cations carriers. Laws Are Made’’, under the direction of the At the request of Mr. INHOFE, the Parliamentarian of the House of Representa- S. 1360 name of the Senator from West Vir- tives in consultation with the Parliamentar- ginia [Mr. ROCKEFELLER] was added as At the request of Mr. ABRAHAM, the ian of the Senate, shall be printed as a Sen- a cosponsor of S. 1084, a bill to estab- name of the Senator from Washington ate document, with suitable paper cover in lish a researh and monitoring program [Mr. GORTON] was added as a cosponsor the style selected by the chairman of the for the national ambient air quality of S. 1360, a bill to amend the Illegal Joint Committee on Printing. (b) There shall be printed— standards for ozone and particulate Immigration Reform and Immigrant Responsibility Act of 1996 to clarify (1)(A) 250,000 copies of the brochure for the matter and to reinstate the original use of the House of Representatives, distrib- standards under the Clean Air Act, and and improve the requirements for the uted in equal numbers to each Member; for other purposes. development of an automated entry- (B) 100,000 copies of the brochure for the exit control system, to enhance land S. 1124 use of the Senate, distributed in equal num- border control and enforcement, and bers to each Member; At the request of Mr. KERRY, the for other purposes. (C) 2,000 copies of the brochure for the use name of the Senator from Maryland SENATE CONCURRENT RESOLUTION 30 of the Joint Committee on Printing; and [Ms. MIKULSKI] was added as a cospon- (D) 1,400 copies of the brochure for dis- sor of S. 1124, a bill to amend title VII At the request of Mr. HELMS, the tribution to the depository libraries; or of the Civil Rights Act of 1964 to estab- name of the Senator from Louisiana (2) if the total printing and production lish provisions with respect to religious [Mr. BREAUX] was added as a cosponsor costs of copies in paragraph (1) exceed accommodation in employment, and of Senate Concurrent Resolution 30, a $180,000, such number of copies of the bro- for other purposes. concurrent resolution expressing the chure as does not exceed total printing and sense of the Congress that the Republic production costs of $180,000, with distribu- S. 1153 of China should be admitted to multi- tion to be allocated in the same proportion At the request of Mr. BAUCUS, the lateral economic institutions, includ- as in paragraph (1). name of the Senator from Alabama ing the International Monetary Fund f [Mr. SESSIONS] was added as a cospon- and the International Bank for Recon- SENATE CONCURRENT RESOLU- sor of S. 1153, a bill to promote food struction and Development. TION 63—AUTHORIZING A PRINT- safety through continuation of the SENATE RESOLUTION 96 ING Food Animal Residue Avoidance Database program operated by the Sec- At the request of Mr. CRAIG, the Mr. WARNER (for himself and Mr. retary of Agriculture. name of the Senator from New York FORD) submitted the following concur- [Mr. D’AMATO] was added as a cospon- S. 1297 rent resolution; which was considered sor of Senate Resolution 96, a resolu- and agreed to: At the request of Mr. COVERDELL, the tion proclaiming the week of March 15 S. CON. RES. 63 name of the Senator from Kentucky through March 21, 1998, as ‘‘National [Mr. MCCONNELL] was added as a co- Resolved by the Senate (the House of Rep- Safe Place Week.’’ resentatives concurring), That (a) a revised sponsor of S. 1297, a bill to redesignate f Washington National Airport as ‘‘Ron- edition of the pamphlet entitled ‘‘The Con- SENATE CONCURRENT RESOLU- stitution of the United States of America’’, ald Reagan Washington National Air- prepared under the direction of the Joint port’’. TION 61—AUTHORIZING A PRINT- Committee on Printing, shall be printed as a S. 1311 ING Senate document, with appropriate illustra- At the request of Mr. LOTT, the Mr. WARNER (for himself and Mr. tion. names of the Senator from Nebraska FORD) submitted the following concur- (b) There shall be printed— (1)(A) 440,000 copies of the pamphlet for the [Mr. KERREY] and the Senator from rent resolution; which was considered use of the House of Representatives, distrib- Maine [Ms. SNOWE] were added as co- and agreed to: uted in equal numbers to each Member; sponsors of S. 1311, a bill to impose cer- S. CON. RES. 61 (B) 100,000 copies of the pamphlet for the tain sanctions on foreign persons who Resolved by the Senate (the House of Rep- use of the Senate, distributed in equal num- transfer items contributing to Iran’s resentatives concurring), That (a) a revised bers to each Member; S11780 CONGRESSIONAL RECORD — SENATE November 5, 1997 (C) 2,000 copies of the pamphlet for the use BYRD AMENDMENTS NOS. 1572–1573 Members appointed pursuant to the para- of the Joint Committee on Printing; and graph (1)(D) shall serve for the term specified (D) 1,400 copies of the pamphlet for dis- (Ordered to lie on the table.) in paragraph (3)(A) or until their member- tribution to the depository libraries; or Mr. BYRD submitted two amend- ship on the President’s Advisory Committee (2) if the total printing and production ments intended to be proposed by him for Trade and Policy Negotiations expires, costs of copies in paragraph (1) exceed to the bill, S. 1269, supra; as follows: whichever occurs first. $120,000, such number of copies of the pam- AMENDMENT NO. 1572 (2) PERSONS FROM WHOM APPOINTMENTS phlet as does not exceed total printing and Beginning on page 27, strike out line 1 and MADE.—Appointments under paragraph (1) production costs of $120,000, with distribu- all that follows through page 31, line 3, and shall be made from the following categories: (A) Attorneys in the practice of inter- tion to be allocated in the same proportion insert in lieu thereof the following: national law. as in paragraph (1). (B) subsections (a) and (b) shall apply with (B) Academic experts in the field of inter- f respect to agreements entered into on or national trade and economy. after October 1, 2001, and before October 1, SENATE RESOLUTION 143—TO (C) Representatives of United States labor 2005, if (and only if)— AUTHORIZE A PRINTING interests. (i) the President requests, under paragraph (D) Representatives of United States indus- Mr. WARNER (for himself and Mr. (2), an extension of the authority provided in trial interests. FORD) submitted the following resolu- such subsections; and At least one of the Presidential appoint- tion; which was considered and agreed (ii) a law extending that authority is en- ments under paragraph (1)(D) shall be a Rep- acted before October 1, 2001. to: resentative of United States labor interests (2) REPORT TO CONGRESS BY THE PRESI- and at least one shall be a representative of S. RES. 143 DENT.—If the President is of the opinion that United States industrial interests. the authority under subsections (a) and (b) Resolved, That the Committee on Rules and (3) TERMS.— Administration is directed to prepare a re- should be extended, the President shall sub- (A) IN GENERAL.—The members described vised edition of the Senate Election Law mit to Congress, not later than July 1, 2001, in paragraph (1) shall each be appointed for Guidebook, Senate Document 104–12, and a written report that contains a request for a term of 2 years, and may be reappointed for that such document shall be printed as a such extension, together with— any number of terms. Senate document. (A) a description of all trade agreements (B) INITIAL APPOINTMENTS.—The initial ap- SEC. 2. There shall be printed 600 additional that have been negotiated under subsections pointments of the members of the Council copies of the document specified in section 1 (a) and (b) and, where applicable, the antici- under paragraph (1) shall be made no later of this resolution for the use of the Commit- pated schedule for submitting such agree- than 90 days after the date of the enactment tee on Rules and Administration. ments to Congress for approval; of this Act. f (B) a description of the progress that has (4) VACANCIES.— been made in negotiations to achieve the (A) IN GENERAL.—Any vacancy on the AMENDMENTS SUBMITTED purposes, policies, and objectives set out in Council shall not affect its powers, but shall section 2 (a) and (b) of this Act, and a state- be filled in the same manner as the original ment that such progress justifies the con- appointment and shall be subject to the THE RECIPROCAL TRADE tinuation of negotiations; and same conditions as the original appointment. AGREEMENT ACT OF 1997 (C) a statement of the reasons why the ex- (B) UNEXPIRED TERM.—An individual cho- tension is needed to complete the negotia- sen to fill a vacancy shall be appointed for tions. the unexpired term of the member replaced. GRAHAM AMENDMENT NO. 1571 (3) REPORT TO CONGRESS BY THE ADVISORY (5) INITIAL MEETING.—No later than 30 days COMMITTEE.—The President shall promptly after the date on which all members de- (Order to lie on table.) inform the Advisory Committee for Trade scribed in paragraph (1) have been appointed, Mr. GRAHAM submitted an amend- Policy and Negotiations established under the Council shall hold its first meeting. ment intended to be proposed by him section 135 of the Trade Act of 1974 (19 U.S.C. (6) MEETINGS.—The Council shall meet at to the bill (S. 1269) to establish objec- 2155) of the President’s decision to submit a the call of the Chairperson. tives for negotiating and procedures for report to Congress under paragraph (2). The (7) QUORUM.—A majority of the members Advisory Committee shall submit to Con- described in paragraph (1) shall constitute a implementing certain trade agree- gress as soon as practicable, but not later ments; as follows: quorum, but a lesser number of members than August 1, 2001, a written report that may hold hearings. On page 41, between lines 16 and 17, insert contains— (8) CHAIR AND VICE-CHAIR.—The Chairperson the following new section and redesignate (A) its views regarding the progress that and Vice Chairperson shall be appointed by the remaining sections and cross references has been made in negotiations to achieve the the members of the Council from among its thereto accordingly: purposes, policies, and objectives of this Act; members. SEC. 6. ADDITIONAL IMPLEMENTATION AND EN- and (c) DUTIES.—The Council shall review each FORCEMENT REQUIREMENTS. (B) a statement of its views, and the rea- report of WTO dispute settlement panels and At the time the President submits the sons therefor, regarding whether the exten- Appellate Body, that is adopted by the Dis- final text of the agreement pursuant to sec- sion requested under paragraph (2) should be pute Settlement Body and in which the Unit- tion 5(a)(1)(C), the President shall also sub- approved or disapproved. ed States is a party to the dispute, to deter- mit a plan for implementing and enforcing (4) REPORTS MAY BE CLASSIFIED.—The re- mine the short term and long term effect of the agreement. The implementation and en- ports submitted to Congress under para- any actions that are taken in response to forcement plan shall include the following: graphs (2) and (3), or any portion of the re- such reports, on the United States economy (1) BORDER PERSONNEL REQUIREMENTS.—A ports, may be classified to the extent the and on particular industries. Within 120 days description of additional personnel required President determines appropriate. after all actions have been taken by the par- at border entry points, including a list of ad- ties, the Council shall provide an assessment ditional customs and agricultural inspectors. AMENDMENT NO. 1573 of, and recommendations regarding, each re- (2) AGENCY STAFFING REQUIREMENTS.—A de- At the end of the bill, add the following: port to the Speaker of the House of Rep- scription of additional personnel required by SEC. 11. ESTABLISHMENT OF ADVISORY COUN- resentatives, the Majority and Minority Federal agencies responsible for monitoring CIL. Leaders of the Senate and the House of Rep- and implementing the trade agreement, in- (a) ESTABLISHMENT.—There is established a resentatives, the Committee on Finance of cluding personnel required by the Office of council to be known as the WTO Advisory the Senate, the Committee on Ways and the United States Trade Representative, the Council (hereafter in this section referred to Means of the House of Representatives, and Department of Commerce, the Department as the ‘‘Council’’). the President. An assessment may contain of Agriculture, and the Department of the (b) MEMBERSHIP.— minority views. The Council may, in making Treasury. (1) COMPOSITION.—The Council shall be its assessment, take into account the history (3) CUSTOMS INFRASTRUCTURE REQUIRE- composed of 10 members of whom— of previous, relevant reports of dispute set- MENTS.—A description of the additional (A) 1 shall be appointed by the Speaker of tlement panels and the Appellate Body. In equipment and facilities needed by the Unit- the House of Representatives, the event the case load of assessments ed States Customs Service. (B) 1 each shall be appointed by the Major- strains the resources of the Council, priority (4) IMPACT ON STATE AND LOCAL GOVERN- ity and Minority leaders of the House of Rep- shall be given to reports which are adverse MENTS.—A description of the impact the resentatives, to the United States. trade agreement will have on State and local (C) 1 each shall be appointed by the Major- (d) REVIEW BY ADVISORY COMMITTEES.—For governments as a result of increases in ity and Minority Leaders of the Senate, and each report that is reviewed, the Chairman trade. (D) 5 shall be appointed by the President of of the Council shall ensure that the relevant (5) COST ANALYSIS.—An analysis of the the United States from the membership of industry sector advisory committees and in- costs associated with each of the items listed the President’s Advisory Committee for dustry policy advisory committees, estab- in paragraphs (1) through (4). Trade and Policy Negotiations. lished pursuant to section 135 of the Trade November 5, 1997 CONGRESSIONAL RECORD — SENATE S11781 Act of 1974, provide their analysis and assess- at which it was imposed before reduction (B) the Committee on Finance of the Sen- ment in a manner timely for the assessment under the agreement for products entered ate and the Committee on Ways and Means by the Council. Subsections (e), (f), and (g) of or’’. of the House of Representatives. section 135 of the Trade Act of 1974 (19 U.S.C. 2155) shall apply to the operation of the advi- AMENDMENT NO. 1579 AMENDMENT NO. 1585 sory committees under this section. On page 42, between lines 14 and 15, insert On page 37, beginning with line 12, strike (e) PERSONNEL MATTERS.— the following: through line 23 and insert the following: (1) EXPENSE REIMBURSEMENT.—There are (c) TRADE AGREEMENT APPROVAL PROCE- (1) DISAPPROVAL OF THE NEGOTIATION.—The hereby authorized to be appropriated such DURES NOT TO APPLY.—The trade agreement trade agreement authorities procedures shall sums as may be necessary to defray or reim- approval procedures do not apply to any not apply to any implementing bill that con- burse any expenses incurred by the members trade agreement that includes any change in tains a provision approving any trade agree- of the Council in carrying out their official the application of subtitle A of title VII of ment that is entered into under section 3(b) duties. the Trade Act of 1930 (19 U.S.C. 1671 et seq.). with any foreign country if— (2) MEETING ROOMS.—The Council may (A) any committee of the Senate and the meet in Senate offices and meeting rooms. AMENDMENT NO. 1580 House of Representatives with jurisdiction On page 42, between lines 14 and 15, insert over legislation involving subject matters HOLLINGS AMENDMENTS NOS. the following: that would be affected by a trade agreement; 1574–1587 (c) TRADE AGREEMENT APPROVAL PROCE- or DURES NOT TO APPLY.—The trade agreement (B) the Committee on Finance of the Sen- (Ordered to lie on the table.) approval procedures contained within this ate or the Committee on Ways and Means of Mr. HOLLINGS submitted 14 amend- Act do not apply to any trade agreement the House of Representatives, ments intended to be proposed by him covering a product which has an import pen- disapproves of the negotiation of the agree- to the bill, S. 1269, supra; as follows: etration in the United States of more than 10 ment before the close of the 90-calendar day AMENDMENT NO. 1574 percent, as determined annually by the period that begins on the date notice is pro- On page 25, strike lines 17 through 25 and International Trade Commission in its most vided under section 4(a)(1) with respect to insert the following: recent determination published before the the negotiation of the agreement. submission of the trade agreement to the (3) FOREIGN TRADE AGREEMENT WITH Congress. CHILE.—The provisions of section 151 of the AMENDMENT NO. 1586 Trade Act of 1974 (in this Act referred to as On page 42, between lines 14 and 15, insert AMENDMENT NO. 1581 ‘‘trade agreement approval procedures con- the following: On page 42, between lines 14 and 15, insert tained within this Act’’) apply only to an im- SEC. 7. FIXED-RATE CURRENCY AGREEMENT. the following: plementing bill submitted with respect to a The President should negotiate a fixed-rate trade agreement entered into with Chile, but SEC. 7. DISPUTE RESOLUTION PROCEDURES currency agreement between the United MUST BE PUBLIC. do not apply to any portion of that agree- States and other Nations. ment that affects the duty on imports of The trade agreement approval procedures contained within this Act do not apply to wine the product of Chile. For the purpose of AMENDMENT NO. 1587 applying section 151(b)(1) to that agreement, any trade agreement unless the dispute reso- the implementing bill may contain only— lution procedures applicable to any dispute On page 42, between lines 14 and 15, insert arising under the agreement are open to the the following: AMENDMENT NO. 1575 public. SEC. 7. TRADE AGREEMENT MUST PROVIDE FORCED LABOR SANCTIONS. On page 42, between lines 14 and 15, insert AMENDMENT NO. 1582 The trade agreement approval procedures the following: contained within this Act do not apply to (c) TRADE AGREEMENT APPROVAL PROCE- On page 32, beginning on line 10, strike through line 20 and insert the following: any trade agreement unless the agreement DURES NOT TO APPLY.—The trade agreement provides for sanctions against countries the approval procedures contained within this (1) CONSULTATION.—Before entering into any trade agreement under section 3 (a) or products of which that are covered by the Act do not apply to any trade agreement agreement are produced by forced labor. that includes any change in the application (b), the President shall consult each commit- of subtitle B of title VII of the Trade Act of tee of the House and the Senate, and each 1930 (19 U.S.C. 1673 et seq.). joint committee of the Congress, which has BYRD AMENDMENT NO. 1588 jurisdiction over legislation involving sub- (Ordered to lie on the table.) AMENDMENT NO. 1576 ject matters that would be affected by the trade agreement. Mr. BYRD submitted an amendment On page 42, between lines 14 and 15, insert intended to be proposed by him to the the following: AMENDMENT NO. 1583 bill, S. 1269, supra; as follows: (c) MULTILATERAL AGREEMENT ON FOREIGN Beginning on page 33, strike out line 9 and INVESTMENT.—The trade agreement approval On page 37, line 16, beginning with ‘‘if’’ procedures do not apply to the international strike through line 16 on page 39 and insert all that follows through page 34, line 24, and agreement commonly known as the Multi- the following: ‘‘unless the Congress by fast- insert in lieu thereof the following: lateral Agreement on Foreign Investment. track approval resolution approves the appli- ‘‘agreement approval procedures; cation of the trade authorities procedures to ‘‘(D) any other agreement the President AMENDMENT NO. 1577 that bill. has entered into or intends to enter into (2) FAST-TRACK APPROVAL RESOLUTION.—For with the country or countries in question; On page 42, between lines 14 and 15, insert purposes of this section, the term ‘‘fast- and the following: track approval resolution’’ means a concur- ‘‘(E) the economic costs and benefits of the (c) TRADE AGREEMENT APPROVAL PROCE- rent resolution of either House of Congress, agreement to the United States in order to DURES NOT TO APPLY.—The trade agreement the sole matter after the resolving clause of ensure that the purposes of section 2(a)(4) approval procedures contained within this which is as follows: ‘‘That the Congress ap- are met. Act do not apply to any trade agreement proves the application of section 151 of the ‘‘(c) ADVISORY COMMITTEE REPORTS.—The that has any affect or impact on the safety Trade Act of 1974 to the implementing bill report required under section 135(e)(1) of the of food sold for consumption in the United submitted to the Congress under section Trade Act of 1974 regarding any trade agree- States. 3(b)(3) of the Reciprocal Trade Agreements ment entered into under section 3(b) of this Act of 1997 on lllll.’’, with the blank Act shall be provided to the President, Con- AMENDMENT NO. 1578 being filled with the date on which the im- gress, and the United States Trade Rep- On page 42, between lines 14 and 15, insert plementing bill was received by the Con- resentative not later than 30 calendar days the following: gress. after the date on which the President noti- ‘‘SEC. 7. TARIFF SNAPBACK. fies Congress under section 5(a)(1)(A) of the ‘‘Whenever the United States dollar value AMENDMENT NO. 1584 President’s intention to enter into the agree- of the currency of a country the products of On page 31, beginning with line 20 strike ment. which may be imported into the United line 2 on page 32 and insert the following: ‘‘(d) CONSULTATION BEFORE AGREEMENT INI- States at a reduced rate of duty under an (2) before and after submission of the no- TIALED.—In the course of negotiations con- agreement authorized by this Act between tice described in paragraph (1), consult re- ducted under this Act, the United States the United States and that country falls by garding the negotiations with— Trade Representative shall consult closely 10 percent from the value of the currency on (A) the committees of the Senate and the and on a timely basis (including imme- the date of the agreement (as reported by the House of Representatives with jurisdiction diately before initialing an agreement) with, Dow Jones Markets as of 4 p.m. in New York over legislation involving subject matters and keep fully apprised of the negotiations, City), any duty imposed on imports of prod- that would be affected by a trade agreement; the congressional advisers for trade policy ucts of that country is increased to the level and and negotiations appointed under section 161 S11782 CONGRESSIONAL RECORD — SENATE November 5, 1997 of the Trade Act of 1974 (19 U.S.C. 2211), the THE RECIPROCAL TRADE Commerce, Science, and Transpor- Committee on Finance of the Senate, and AGREEMENT ACT OF 1997 tation be authorized to meet at 9:30 the Committee on Ways and Means of the a.m. on global warming. House of Representatives. The PRESIDING OFFICER. Without ‘‘SEC. 5. IMPLEMENTATION OF TRADE AGREE- REED AMENDMENTS NOS. 1591–1592 objection, it is so ordered. MENTS. (Ordered to lie on the table.) ‘‘(a) IN GENERAL.— COMMITTEE ON FINANCE ‘‘(1) NOTIFICATION AND SUBMISSION.—Any Mr. REED submitted two amend- Mr. ROTH. Mr. President, the Fi- agreement entered into under section 3(b) ments intended to be proposed by him nance Committee requests unanimous shall enter into force with respect to the to the bill, S. 1269, supra; as follows: consent to conduct a hearing on United States if (and only if)— AMENDMENT NO. 1591 Wednesday, November 5, 1997 beginning ‘‘(A) the President, at least 90 calendar On page 41, between lines 16 and 17, insert at 2 p.m. in room 215 Dirksen. days before the day on which the President the following new section and redesignate The PRESIDING OFFICER. Without enters into the trade agreement, notifies the the remaining sections and cross references objection, it is so ordered. House of Representatives and the Senate of thereto accordingly: COMMITTEE ON FOREIGN RELATIONS the President’s intention to enter into the SEC. 6. ACTIONABLE UNFAIR TRADE PRACTICES. agreement, and promptly thereafter pub- (a) IN GENERAL.—Every applicable trade Mr. ROTH. Mr. President, I ask unan- lishes notice of such intention in the Federal agreement shall provide that it shall be an imous consent that the Committee on Register; actionable unfair trade practice for purposes Foreign Relations be authorized to ‘‘(B) within 60 calendar days after entering of section 301 of the Trade Act of 1974 for any meet during the session of the Senate into the agreement, the President submits to party to the agreement or the industries of on Wednesday, November 5, 1997, at 10 Congress a description of those changes to any party to gain a competitive advantage in a.m. to hold a hearing. existing laws that the President considers international trade, commerce, or finance by would be required in order to bring the Unit- The PRESIDING OFFICER. Without systematically denying or practically nul- objection, it is so ordered. ed States into compliance with the agree- lifying internationally recognized worker ment, and an analysis of the economic costs rights or internationally recognized environ- COMMITTEE ON GOVERNMENTAL AFFAIRS and benefits of the agreement to the United mental standards. Mr. ROTH. Mr. President, I ask unan- States;’’. (b) DEFINITIONS.—In this section: imous consent on behalf of the Govern- (1) APPLICABLE TRADE AGREEMENT.—the f mental Affairs Committee to meet on term ‘‘applicable trade agreement’’ means a Wednesday, November 5, at 10 a.m. on a trade agreement approved pursuant to the markup on the following agenda nomi- THE OTTAWA AND CHIPPEWA IN- trade agreement approval procedures pro- nation only. DIANS JUDGMENT FUNDS ACT vided for in this Act. The PRESIDING OFFICER. Without OF 1997 (2) INTERNATIONALLY RECOGNIZED WORKER RIGHTS.—The term ‘‘internationally recog- objection, it is so ordered. nized worker rights’’ has the meaning given COMMITTEE ON THE JUDICIARY that term in section 502(a)(4) of the Trade Mr. ROTH. Mr. President, I ask unan- INOUYE AMENDMENTS NOS. 1589– Act of 1974. imous consent that the Committee on 1590 (3) INTERNATIONALLY RECOGNIZED ENVIRON- MENTAL STANDARDS.—The term ‘‘internation- the Judiciary be authorized to meet (Ordered to lie on the table.) ally recognized environmental standards’’ in- during the session of the Senate on Mr. INOUYE submitted two amend- cludes— Wednesday, November 5, 1997 at 2 p.m. ments intended to be proposed by him (A) mitigation of global climate change; in room 226 of the Senate Dirksen Of- to the bill (H.R. 1604) to provide for the (b) reduction in the consumption and pro- fice Building to hold a hearing on the duction of ozone-depleting substances; division, use, and distribution of judg- (C) reduction in ship pollution of the nomination of Seth Waxman to be So- ment funds of the Ottawa and Chip- oceans from such sources as oil, noxious bulk licitor General. pewa Indians of Michigan pursuant to liquids, hazardous freight, sewage, and gar- The PRESIDING OFFICER. Without dockets numbered 18–E, 58, 364, and 18– bage; objection, it is so ordered. R before the Indian Claims Commis- (D) a ban on international ocean dumping COMMITTEE ON RULES AND ADMINISTRATION sion; as follows: of high-level radioactive waste, chemical Mr. ROTH. Mr. President, I ask unan- warfare agents, and hazardous substances; AMENDMENT NO. 1589 (E) government control of the imous consent that the Committee on In section 11, strike the section heading transboundary movement of hazardous waste Rules and Administration be author- and all that follows through ‘‘The eligi- materials and their disposal for the purpose ized to meet during the session of the bility’’ and insert the following: of reducing global pollution on account of Senate on Wednesday, November 5, ‘‘SEC. 11. TREATMENT OF FUNDS IN RELATION TO such materials; 1997, beginning at 9:30 a.m. until busi- OTHER LAWS. (F) preservation of endangered species; ness is completed, to conduct a busi- ‘‘(a) APPLICABILITY OF PUBLIC LAW 93–134.— (G) conservation of biological diversity; (H) promotion of biodiversity; and ness meeting to vote on matters pend- All funds distributed under this Act or any ing before the committee including the plan approved in accordance with this Act, (I) preparation of oil-spill contingency including interest and investment income plans. use of laptop computers on the Senate that accrues on those funds before or while (4) ACTIONABLE UNFAIR TRADE PRACTICE.— floor; release of documents to Harry those funds are held in trust, shall be subject The term ‘‘actionable unfair trade practice’’ Connick, District Attorney of New Or- to section 7 of Public Law 93–134 (87 Stat. means, under the laws of the United States, leans; and, reimbursement of expenses 468). an act, policy, or practice that, under sec- in connection with the contested Sen- tion 301 of the Trade Act of 1974, is unjustifi- ‘‘(b) TREATMENT OF FUNDS WITH RESPECT ate election in Louisiana. TO CERTAIN FEDERAL ASSISTANCE.—The eligi- able and burdens or restricts United States commerce. The PRESIDING OFFICER. Without bility’’. objection, it is so ordered. AMENDMENT NO. 1592 SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AMENDMENT NO. 1590 On page 15, between lines 23 and 24 insert AND REGULATORY RELIEF In section 11, strike the section heading the following: Mr. ROTH. Mr. President, I ask unan- and all that follows through ‘‘The eligi- (C) In pursuing the negotiating objective imous consent that the Subcommittee bility’’ and insert the following: described in subparagraph (A), the United ‘‘SEC. 11. TREATMENT OF FUNDS IN RELATION TO on Financial Institutions and Regu- States shall seek to prohibit practices that latory Relief of the Committee on OTHER LAWS. require a transfer of United States developed ‘‘(a) APPLICABILITY OF PUBLIC LAW 93–134.— technology to foreign governments as a con- Banking, Housing, and Urban Affairs All funds distributed under this Act or any dition of trade. be authorized to meet during the ses- plan approved in accordance with this Act, f sion of the Senate on Wednesday, No- including interest and investment income vember 5, 1997, to conduct a hearing on that accrues on those funds before or while AUTHORITY FOR COMMITTEES TO S. 1315 and the presence of foreign gov- those funds are held in trust, shall be subject MEET ernments and companies, particularly to section 7 of Public Law 93–134 (87 Stat. 468). COMMITTEE ON COMMERCE, SCIENCE, AND China, in our securities and banking ‘‘(b) TREATMENT OF FUNDS WITH RESPECT TRANSPORTATION sectors. TO CERTAIN FEDERAL ASSISTANCE.—The eligi- Mr. ROTH. Mr. President, I ask unan- The PRESIDING OFFICER. Without bility’’. imous consent that the Committee on objection, it is so ordered. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11783 SUBCOMMITTEE ON IMMIGRATION ation in Philadelphia, through the leg- ferson Building. The Main Reading Mr. ROTH. Mr. President, I ask unan- islature’s move to the new capital city Room is the heart of the Thomas Jef- imous consent that the Subcommittee of Washington, through the 1814 British ferson Building. It is covered by a on Immigration, of the Senate Judici- invasion of Washington that burned beautiful dome, the exterior of which is ary Committee, be authorized to meet the Capitol and the Library of Con- covered by a great blazing torch and during the session of the Senate on gress, and through our purchase of flame, marking the center and apex of Wednesday, November 5, 1997 at 10 a.m. Thomas Jefferson’s own extensive li- the Jefferson Building. This torch and to hold a hearing in room 562, Senate brary to recommence the Library of flame are symbolic of the learning and Dirksen Building, on: The Impact of Congress as a universal collection of knowledge in the Library of Congress. Section 110 of the 1996 Immigration Act knowledge. From now on, the glowing Torch of of the Land Borders of the United By the 1870’s, the Library of Congress Learning will light the skyline over States. collections had grown to more than the Capitol, a worthy companion to the The PRESIDING OFFICER. Without 300,000 volumes and had already out- lighted dome of the Capitol. objection, it is so ordered. grown the space in the Capitol that it SUBCOMMITTEE ON TECHNOLOGY, TERRORISM, had occupied since its move to Wash- I thank, on behalf of my colleagues AND GOVERNMENT ington. It was the foresight of on the joint committee, the Office of Mr. ROTH. Mr. President, I ask unan- Ainsworth Rand Spofford, the sixth Li- the Architect of the Capitol which has imous consent that the Subcommittee brarian of Congress, that helped trans- overseen the restoration of the Jeffer- on Technology, Terrorism, and Govern- form the Library of Congress into an son Building we celebrate today. As the ment, of the Senate Judiciary Commit- institution of national stature, and Library of Congress moves toward its tee, be authorized to meet during the eventually lead to the building of the Bicentennial in the year 2000, Congress session of the Senate on Wednesday, Thomas Jefferson building we cele- will continue to reap the benefits of November 5, 1997 at 3 p.m. to hold a brate today. the Library’s incomparable collections. hearing in room 192, Senate Dirksen Spofford recognized the importance In particular, our constituents will Building, on: The Nation at Risk; Re- of copyright deposit as a means to en- benefit from Librarian James port of the President’s Commission on sure the continued development of the Billington’s efforts to extend the Li- Critical Infrastructure Protection. Library’s collections. After the 1870 re- brary’s unique special collections and The PRESIDING OFFICER. Without vision of the copyright law, two copies service nationwide through the objection, it is so ordered. of every book, pamphlet, map, print, Internet. SUBCOMMITTEE ON TRANSPORTATION AND photograph, and piece of music reg- One hundred years ago, the Congress INFRASTRUCTURE istered for copyright was to be depos- supported the vision of Ainsworth Mr. ROTH. Mr. President. I ask unan- ited with the Library of Congress. The Rand Spofford and provided the means imous consent that the Subcommittee copyright law today continues to fuel for the collections to grow and to be on Transportation and Infrastructure the Library’s special collections, in- be granted permission to conduct a cluding film, television, digital mate- housed in a building described as the hearing Wednesday, November 5, 10 rials, and computer software. most beautiful in America. As the Li- a.m., hearing room (SD–406), to exam- The growth of the collections brary of Congress approaches the 21st ine the General Services Administra- through copyright deposit created the century, it needs and deserves the con- tion proposal to construct or otherwise need for a new building for the Library tinued support of Congress as our na- acquire a facility to house the head- of Congress. The building, later named tion’s strategic information reserve. quarters of the Department of Trans- for Thomas Jefferson, was authorized I ask that a summary of the Li- portation. in 1886 and completed in 1897, on time brary’s operations, to date this year, be The PRESIDING OFFICER. Without and under budget and was immediately printed in the RECORD. objection, it is so ordered. hailed as a national monument—an im- The material follows: SUBCOMMITTEE ON YOUTH VIOLENCE posing structure of the Italian Renais- LIBRARIAN OF CONGRESS, Mr. ROTH. Mr. President, I ask unan- sance style. Every Member of Congress Washington, DC, October 24, 1997. imous consent that the Subcommittee has had the opportunity to visit the Hon. TED STEVENS, on Youth Violence, of the Senate Judi- magnificently restored Jefferson Build- Chairman, Committee on Appropriations, ciary Committee, be authorized to ing and admire the extraordinary beau- U.S. Senate, Washington, DC. meet during the session of the Senate ty and grandeur of the Great Hall, the DEAR MR. CHAIRMAN: It will be some on Wednesday, November 5, 1997 at 10 Main Reading Room, and the Members’ months before the Library’s Annual Report a.m. to hold a hearing in room 226, Sen- Room. for FY97 is completed and delivered to you. ate Dirksen building, on: Examining It is not a simple matter to authorize I wanted to take the beginning of a new fis- the Federal Effort to Prevent Juvenile a new Federal building, let alone a cal year as an occasion to provide you with Crime. building to be constructed immediately a summary of the Library’s operations. I be- The PRESIDING OFFICER. Without adjacent to the Capitol. Librarian of lieve that it is important for you, as a Mem- objection, it is so ordered. congress Spofford had two staunch al- ber of Congress charged with oversight of the f lies: Senator Daniel W. Voorhees of In- Library, to understand the Library’s man- diana and Senator Justin S. Morrill of agement goals and our progress toward ADDITIONAL STATEMENTS them. Vermont. Today, Senator Morrill’s ef- forts will be recognized. A plaque hon- MANAGEMENT 100TH ANNIVERSARY OF THE oring his commitment to the Library THOMAS JEFFERSON BUILDING General Donald Scott has just marked his and construction of the Jefferson first anniversary as Deputy Librarian, the ∑ Mr. STEVENS. Mr. President, today Building will be unveiled by our cur- Library’s Chief Operating Officer. Don’s ca- marks the 100th anniversary of the rent Librarian of Congress, James pable handling of the Library’s day-to-day Thomas Jefferson Building, the crown Billington, and the Vermont congres- operations has enabled me to focus on policy jewel of the buildings occupied by the sional delegation. The Morrill plaque concerns, planning for the Library’s Bicen- Library of Congress. As vice chairman will flank that recognizing Senator tennial (see below), and completing the nec- of the Joint Committee on the Library, Voorhees so that each Senator might essary private-sector fundraising to meet our goal of $45 million for the National Digital it is my privilege to mark this impor- be honored by all who enter the Great Library (NDL). tant day. Hall for their dedication to and vision To date, we have $30 million in gifts and The Library of Congress occupies a for Congress’ Library. unique place in American history, and This evening, on behalf of the Joint pledges. The NDL site continues to be one of the most recognized content sites on the in the vast flow of information that Committee on the Library, I will join Internet. THOMAS, the American Memory crosses the globe and drives America’s the joint committee chairman, Rep- collections, and the Learning Page are used economic well-being. The Library is resentative BILL THOMAS, Librarian by millions of citizens, legislators, teachers, Congress’ legislative library, our major James Billington, and Architect of the parents, and students each month. research arm, and a national library as Capitol Alan Hantman to light for the The National Science Foundation will well as cultural institution. Congress very first time the restored Torch of shortly announce a second round of Digital has nurtured this Library from its cre- Learning that crowns the Thomas Jef- Library research grants. The Library of S11784 CONGRESSIONAL RECORD — SENATE November 5, 1997 Congress’s NDL and the National Library of we have transmitted the formal request for memoration of the Library of Congress, Medicine have been invited to participate as permanent authorization for the Center to which will celebrate the creative use of user test-bed sites for possible cutting-edge the Library’s oversight committees. knowledge as a function of democracy. At research applications. A recent example may Particularly as the Library approaches its the October 6 press conference, John Y. Cole, help suggest to you the importance of this own Bicentenary, it is essential that this im- the Library’s Bicentennial project director invitation from NSF. Compression software, portant collection and its curators have as- and director of the Center for the Book, said originally developed at the Los Alamos Lab surance of their place in the Library. The ‘‘Libraries are important educational insti- and only recently made available for non-de- collection itself dates from the 1890’s The tutions and a natural link between learning fense applications, was given as a gift to the Center was created during the Bicentenary and liberty; this is their celebration too.’’ Library. for the first time, the Library was of the American Revolution in 1976 as a pow- Core Bicentennial endeavors include ‘‘Gifts able to digitize items from our enormous erful tool to ensure the place of folklore and to the Nation,’’ ‘‘Frontiers of Knowledge,’’ map collections for the NDL. This compres- local history and customs in our national ‘‘Local Legacies’’ and ‘‘Favorite Poems.’’ consciousness. The rich ethnic and regional sion software made it possible to display and Gifts to the Nation search maps for the first time. We hope that materials in the Center’s Archive comprise the nation’s largest and most varied folklore The ‘‘Gifts to the Nation’’ program is a re- other research breakthroughs will help the ciprocal endeavor. It will include activities Library offer even more diverse collections collection—filled with the type of material that is providing of special value for local such as significant acquisitions for the Li- through the NDL. brary’s collections; the Library’s commis- Under the leadership of Chief of Staff, Jo schools and libraries throughout America on the National Digital Library. sioning of creative works of music, drama, Ann Jenkins, the Library has updated its art and literature; and the Library’s effort, strategic plan through 2004. We have also es- The Library is beginning the new fiscal year with strategic goals, sound financial through its National Digital Library Pro- tablished a Directorate for planning, Man- gram, of making available electronically agement and Evaluation (PMED), headed by management, significant new staffing, and enormous external and internal enthusiasm millions of items from its American histori- Thomas Bryant. cal collections by the end of the year 2000. Finally, the Library’s second external and interest in our Bicentenary. I trust that The idea of Bicentennial ‘‘Gifts to the Na- audit of its financial operations received a I can count on your continued interest and tion’’ continues the Library’s proud tradi- clean option from KPMG. This is an out- support. Please feel free to follow up on any topic I have raised. We would be pleased to tion of helping local libraries through donat- standing achievement, in only the second come brief you further at any time. ing surplus books and by providing catalog- audit cycle, for any government agency. Sincerely, ing information, services which save librar- SECURITY JAMES H. BILLINGTON, ies millions of dollars each year. In February 1997, the Library hired Ken- The Librarian of Congress. Frontiers of Knowledge Enclosure. neth Lopez as its Director of Security. Work- Drawing on the remarkable comprehen- ing under Ken with a team of security pro- LIBRARY OF CONGRESS—BICENTENNIAL 1800– siveness and diversity of the Library’s col- fessionals, curators, and senior librarians, we 2000 lections, the ‘‘Frontiers of Knowledge’’ pro- have completed the Library’s Security Plan, LIBRARIES, CREATIVITY, LIBERTY gram will present a series of lectures and and I have forwarded it to the Library’s In a press conference on October 6, 1997, the symposia exploring ideas that shape our oversight committees for their review. The Librarian of Congress James H. Billington lives, especially as we look to the next cen- Library’s external audit process calls for an presented preliminary plans for the com- tury. At the June 1999 conference, ‘‘The annual review of the Library’s care and con- memoration of the Library’s Bicentennial in Frontiers for the Mind in the 21st Century,’’ trol of its ‘‘heritage assets’’—the 112 million the year 2000. ‘‘From its earliest days, the distinguished scholars will summarize sig- items in the Library’s collections. The audit Library of Congress has supported the work nificant developments in approximately 20 will, therefore, provide an annual update on of libraries everywhere in the spirit of James fields in the past century and look ahead to the Library’s overall security of its collec- Madison, who eloquently said that he could challenges in the year 2000 and beyond. tions. not imagine anything more essential for our Interaction between the scholars and young BICENTENNIAL new republic than ‘liberty and learning, each people, the latter representing every Con- As you well know, the Library will cele- leaning on each other for their mutual and gressional District in the nation, will be an brate its bicentenary—along with the bicen- surest support’ . . . ‘knowledge will forever important focus of the conference. Fields of tenary of the Congress’ move to Washing- govern ignorance and a people who mean to inquiry will include: demography, immunol- ton—in the year 2000. On October 6th, the Li- be their own governors must arm themselves ogy/epidemiology, economics, political phi- brary announced its theme, goals, and over- with the power that knowledge gives.’ We be- losophy/law, semiotics, neuroscience, molec- all plans and launched a website for its Bi- lieve that the link between learning and lib- ular evolution and historical genetics, cos- centennial (http:/www.loc.gov/bicentennial). erty is one of our most basic civic truths. It mology, earth and ocean science, ecology, A copy of our announcement is enclosed with is our responsibility as the largest library to biochemistry, physics/computer science, reli- this letter. ensure that the tools of learning are univer- gion/theology, history as narrative, human- Prior to our public announcement, I wrote sally accessible.’’ ities, literature, ethnomusicology, philoso- to Members of Congress to invite their par- GOAL OF THE BICENTENNIAL COMMEMORATION phy, and cultural psychology. ticipation and that of their constituents— The goal of the Bicentennial commemora- Local Legacies particularly libraries—in our plans. I am tion is ‘‘To inspire creativity in the century ‘‘Local Legacies’’ will build upon local pleased that we have received over 100 re- ahead by stimulating greater use of libraries projects now underway nationally in part- sponses to date. and other avenues of learning everywhere.’’ nership with Library of Congress offices such On October 7, the Madison Council, the Li- The Bicentennial goal will be achieved as the American Folklife Center and the Center brary’s private-sector advisory fundraising through a variety of national, state, and for the Book to highlight the richness of group, hosted a gala to launch the Bicenten- local projects, developed in collaboration America’s heritage at the end of the century nial and to raise funds for its implementa- with the offices of the Members of Congress, and the millennium. These include Montana tion. The evening, a celebration of Creative the Library’s staff, and special advisory com- Heritage, Rivers of America, Literary Maps of America, highlighted the Library’s enor- mittees. America, and Building a Nation of Readers. mously rich music and manuscript collec- BICENTENNIAL LOGO AND THEME The Montana Heritage project, funded by the tions and raised $800,000 to support Bicenten- The logo for the Bicentennial commemora- Liz Claiborne and Art Ortenberg Foundation, nial programs, bringing the total commit- tion features the interior dome of the Li- fosters projects in local schools teaching stu- ment to date from the Madison Council to brary’s famous Main Reading Room and the dents how to research and document local $1.5 million. Thanks are due to John Kluge, theme ‘‘Libraries, Creativity, Liberty.’’ The cultural heritage. The Rivers of America chair of the Madison Council, and to the gala unseen painting within the circle in the project examines and celebrates the histori- co-chairs, Buffy Cafritz of Washington, D.C., dome’s ‘‘eye’’ is the image of a woman rep- cal, literary, and environmental heritage of and Alyne Massey of Nashville, Tennessee. resenting ‘‘Human Understanding.’’ In the America’s rivers. It encourages high school LEGISLATIVE UPDATE painting, ‘‘Human Understanding’’ is lifting students, such as those taking part in the We are deeply grateful that the Library’s her veil and looking upward toward the fu- Montana Heritage project, to focus their field FY98 budget was very generously supported ture. This logo and theme symbolize what research on a local river, particularly the by the Congress. In particular, funding for the Bicentennial Commemoration is about: history of the community in relation to that our top priority, an Integrated Library Sys- stimulating creativity and ensuring a free river. Documentary reports and histories for tem (ILS), and for the cost of our mandatory society through greater use of libraries ev- the collections of local institutions are one pay raises will make an enormous difference erywhere. The Library of Congress looks for- product. The Literary Map project encourages in the Library’s ability to continue to secure ward in the months ahead to developing learning about local geography and lit- its collection and provide the highest quality ways for other libraries to share in the use of erature—simultaneously. Literary maps de- service to the Congress and to the nation. this logo. pict a state or region’s literary heritage, The American Folklife Center requires re- BICENTENNIAL PLANS usually through colorful, well-illustrated authorization. Consistent with the Board’s Libraries of all kinds and sizes are invited maps that show where authors live or were wishes, and with my wholehearted support, to participate in the Bicentennial Com- born or where novels or well-known books November 5, 1997 CONGRESSIONAL RECORD — SENATE S11785 were written. Since 1992, more than 20 such sources for the study of the Library, and cur- surveys to identify the most influential book maps have been created and added to the col- rent scholarly research about the Library and film of the century, an international lections of the Library of Congress. To re- and its role in American life. conference on comparative constitutional mind Americans of the importance of read- VIRTUAL TOUR OF THE THOMAS JEFFERSON law, a Library-related photography contest ing to individuals and to the nation, the Cen- BUILDING with an exhibition of winning photographs ter for the Book of the Library of Congress traveling around the country, a conference A Virtual Tour of the Thomas Jefferson has chosen Building a Nation of Readers for about national libraries at the Library of Building, with photographs and moving pano- the Library of Congress’s national reading Congress, and the joint celebration of Na- ramas of the splendid public spaces and other promotion campaign for the years 1997–2000. tional Library Week and the Library’s Bicen- rooms of this historic building, is currently The Library also wants to identify local his- tennial in April of 2000. being prepared for the Library’s World Wide torical collections that should be linked Web site. SUPPORT FOR THE BICENTENNIAL with the National Digital Library. The Bicentennial projects will be privately OTHER BICENTENNIAL PROJECTS UNDER Favorite Poems funded, with substantial support from the DEVELOPMENT James Madison Council. The Madison Council Poet Laureate Robert Pinsky will take the Among other Bicentennial projects in the lead in the ‘‘favorite poem’’ project, which will established in 1990 to help the Library early planning stages are major exhibitions, share its unique resources with the nation will feature approximately 100 Americans Jefferson Knowledge, and Democratic and from all walks of life choosing and reading and the world. America at Play, and national television pro- LOOK FOR UPDATES TO THE BICENTENIAL aloud a favorite poem. The resulting audio gramming. and video archives, in Mr. Pinsky’s words, PROGRAM will be ‘‘a record, at the end of the century, Jefferson, Knowledge, and Democracy The Library of Congress Bicentennial of what we choose, and what we do with our Exhibition home page will be changed as the program voices and faces, when asked to say aloud a This major exhibition is being planned for develops. Check in at this address—http:// poem that we love.’’ April–October 2000 and will use Jefferson’s www.loc.gov/bicentennial/—for the latest in- Commemorative Coin and Stamp personal books that he sold to the Congress formation on Bicentennial activities and in 1815, his personal papers, his architectural events.∑ Legislation has been introduced for a Bi- drawings, his personal artifacts (such as his f centennial commemorative coin. The Li- original ‘‘reading machine,’’ a revolving brary of Congress is also exploring a Bicen- reading stand which he designed) to examine WORKPLACE RELIGIOUS FREEDOM tennial commemorative stamp series, based his ideas. A secondary theme will be how ACT on its unparalleled collections, to be issued these ideas—in architecture, the arts, law, in the year 2000. ∑ Ms. MIKULSKI. Mr. President, I rise science, politics, music, geography, agri- today to support a bill introduced by Bicentennial Publications culture, and other subjects-have influenced my colleagues Senators KERRY and Between the fall of 1997 and the year 2000, America and the world. the Library of Congress will produce several Jefferson’s idea on the relationship be- COATS to protect workplace religious major publications as part of fulfilling its tween knowledge and democracy are as vital freedom. Bicentennial goal of stimulating creativity today as when he first enunciated them. This I have long championed the rights of and wisdom through greater understanding is clearly evident in the intense debate on individuals to freedom of religious ob- of the Library and its remarkable collec- those ideas among contemporary Jeffer- servance and practice. I believe indi- tions. Highlights of the Bicentennial publish- sonian scholars, which will be explored in vidual Christians, Jews, Muslims, and ing program include: the exhibition. Jefferson’s coupling of others should be able to honor their re- knowledge and freedom also are at the root 1997 ligious beliefs without fear of losing of the current impassioned demand for an in- Eyes of the Nation: A Visual History of the formation ‘‘superhighway’’ whereby knowl- their jobs. United States edge can be speedily and universally dissemi- For example, employees should be A pictorial and narrative history published nated. able to observe Good Friday, the Jew- by Alfred A. Knopf, Eyes of the Nation con- The exhibition will be the centerpiece for a ish Sabbath or wear clothing required tains more than 500 full-color and duotone il- series of events and multi-media projects by one’s religion. I’ve met with many lustrations from the Library’s collections. that will help make Jefferson’s ideas (and constituents who have expressed their The book marks the centennial of four of the the Jefferson-Library of Congress connec- concern to me that they have been dis- Library’s major collection divisions: Prints tion) understandable to a wide audience. In- criminated against because of their re- and Photographs, Manuscript, Music and Geog- terpretive brochures, a catalog, educational raphy and Map. An Eyes of the Nation CD– ligious practices. materials, a summer institute for teachers, a My State of Maryland already has ROM is also available. concert of music in Jefferson’s time, films, many employers who are sensitive to The Library of Congress: The Art and and various videos will enhance the exhi- Architecture of the Thomas Jefferson Building bition. the needs of religious accommodation. However, there is room for improve- Published by W. W. Norton, The Art and Ar- America at Play Exhibition ment. One Arab-American woman from chitecture of the Thomas Jefferson Building fea- America at Play is the second exhibition to tures essays and 280 illustrations, 185 of them celebrate the Library’s 200th anniversary; my State told me she cannot wear her in color, depicting the architecture and deco- through it visitors can see and enjoy how traditional Muslim garb at her place of rative elements in this magnificent building. Americans have amused themselves over the employment. I know there are other The book commemorates the centennial of past two centuries. Drawing on the Library stories like this which cut across all the building’s opening. of Congress’s extensive and unique collec- faiths. 1998 tions, the exhibitions will take its cue from If an employee’s religious practice The Jefferson Building: A Guide for Visitors prints, photographs, maps, travel literature, does not cause an undue hardship on an recorded audio and visual materials, manu- This publication will provide visitors a employer, an employee should be given scripts, and books to cover topics such as the compact, but fully illustrated book. the freedom to observe or practice a re- exploration of the west and the rise of tour- 1999 ism; the development of recreational areas ligious custom. The Library of Congress: A Bicentennial History in the country; the growth of spectator and I am dismayed that many individuals are discriminated against in our soci- Published by Yale University Press, the recreational sports; the importance of re- volume will be a well-illustrated popular his- corded music and film classics; and the gold- ety, because of their religious beliefs. tory and interpretation of the Library’s 200 en age of television. Our country was founded on the years of service to Congress and the nation. To link these separate elements, the exhi- premise that everyone has a right to bition will select from its unparalleled col- Encyclopedia of the Library of Congress religious freedom. We need to preserve lection of political cartoons and drawings The illustrated, one-volume reference work this doctrine. and the writings of American humorists. Unfortunately, the courts have inter- will contain 12 topical essays and approxi- These visual commentaries will further illus- mately 150 brief entries about the Library trate and put into context the ‘‘amuse- preted title VII of the Civil Rights Act and its activities. ments’’ covered. The exhibition, on display of 1964 very narrowly when it comes to 2000 from the Fall of 2000, will be accompanied by religious practices. This bill would re- The Library of Congress in American Life, 1800– a catalog, and educational and outreach pro- store the basic tenet of religious free- 2000 grams, including a series of musical comedy dom to thousands of individuals who and film presentation and live performances. The Library of Congress in American Life will have met with discrimination at the be a four-volume documentary set, featuring PROPOSED BICENTENNIAL PROJECTS workplace. the Library’s chronology, biographies of the A variety of Bicentennial projects have I urge my colleagues to support S. Librarians of Congress, documents and re- been proposed, including local newspaper 1164, the Workplace Religious Freedom S11786 CONGRESSIONAL RECORD — SENATE November 5, 1997 Restoration Act. I believe religious ac- ing a costly but essential deployment try’s welfare in his hands. All that is commodation is a cherished right that of United States military forces to the asked of him is to place that welfare we must protect.∑ region to deter a repeat of the 1990 in- above his drive to threaten his neigh- f vasion. Whether Iraq intended to in- bors with chemical, biological, and nu- vade Kuwait at that time is highly un- clear weapons. The fact that he has SITUATION IN IRAQ likely; whether a failure to respond on been unwilling to accept that very ∑ Mr. McCAIN. Mr. President, the the part of the United States would basic condition illustrates the need to United States is once again facing a de- have emboldened Saddam is beyond maintain the sanctions in perpetuity if cision about whether and how to re- dispute. necessary. The international commu- spond to Iraqi intransigence over the Two years later, Iraq launched a nity was willing to isolate South Afri- issue of its continued development and large-scale concerted ground campaign ca for an indefinite period of time until concealment of weapons of mass de- against Kurdish enclaves in the coun- fundamental changes were imple- struction and their associated delivery try s north. Saddam was able to exploit mented. It is entirely reasonable, and systems. It is imperative that we not longstanding, violent divisions within essential for the future of our friends back down, as has already been the the Kurdish population to reestablish a and allies in the Middle East as well as case to an alarming degree. measure of control over territory de- for our own economic well-being, that All countries act out of their own nied it since the Gulf war. In so doing, the international community dem- economic self-interest. The United it sent a resounding message to the onstrate the same steadfastness in the States is no exception. We should not, Kurdish population, including that case of Iraq that it did with South Afri- however, acquiesce in such conduct in part to which it allied itself during its ca. Morally and practically, it is the the case of Iraq. Russia, which seeks military incursion, that it was willing only option available to us.∑ compensation for weapons it sold to and capable of asserting itself within f Baghdad during the Soviet era as well its borders. Particularly disturbing, if PROMOTION OF JOHN H. as the hard currency and access to oil totally in character for Saddam, his in- OLDFIELD, JR. that Iraq represents, and France, which telligence service utilized the oppor- similarly pursues contracts for the de- tunity to hunt down and execute Kurd- ∑ Mr. COVERDELL. Mr. President, I velopment of Iraqi oil, have led the ish factions hostile to his brutal rule, rise today to commend the promotion way in arguing for a relaxation of the including hundreds of individuals who of John H. Oldfield to Brigadier Gen- economic sanctions levied against Iraq had cast their lot with the United eral of the Georgia Air National Guard as a result of its 1990 invasion of Ku- States. and applaud his lifelong service to the wait. Countries like Egypt and Kenya The Clinton administration’s re- State of Georgia and to the U.S. mili- have demonstrated growing sympathy sponse to that incursion into territory tary. for Iraq’s economic situation. supposedly under U.N. protection was Mr. President, Mr. Oldfield, who was The reason why the United States to launch a small number of embar- born and still resides with his wife and should stand firm and not continue to rassingly ineffectual cruise missile one son in Savannah, GA, has received adopt essentially meaningless posi- launches in an entirely different region numerous distinguished military tions on the question of sanctions is and to expand the no-fly zone in the awards and decorations over his career quite simple: Iraq has to a remarkable south. If our intent was to prevent a in the Armed Services. These accom- degree always held its destiny in its horizontal escalation of the conflict, plishments, as well as his lifelong dedi- own hands. Little was asked of it other we succeeded. The fact that there was cation to the well being of the State of than to come clean on the extent of its not apparent intent on the part of Sad- Georgia, have led to his recent pro- efforts to develop weapon systems ca- dam at that time to conduct military motion, which was unanimously ap- proved by the U.S. Senate on October pable of threatening stability in the operations in the south was purely aca- 30, 1997. world’s most volatile region. And, yet, demic. Mr. President, I would like to take it has consistently, for more than 6 The most recent incident started out this opportunity to congratulate Briga- years now, refused to do that, repeat- considerably more ambiguous, but is dier General Oldfield and wish him con- edly challenging the international no less damaging to the U.N.’s ability tinued success in his new position.∑ community and miscalculating the to enforce its provisions over the pro- ramifications of its actions. tracted periods of time necessary to f With regard to its efforts at develop- get results. Iraq clearly violated the FAREWELL TO JOHN STURDIVANT ing chemical, biological, and nuclear no-fly zone, but only after Iranian at- ∑ Mr. STEVENS. Mr. President, weapons and the missiles to deliver tacks against bases of the People s yesteday, the Federl employee commu- them, a particularly illuminating epi- Mojahedin of Iran situation on the nity said a final goodby to John sode occurred back in August 1995. It Iraqi side of the border. There is a no- Sturdivant, the president of the Amer- was then that Saddam Hussein s sons- ticeable dearth of sympathetic parties ican Federation of Government Em- in-law, one of whom had been in charge here, but the bottom line is that the ployees. John lost his battle with leu- of overseeing the development of those no-fly zone was violated, and the ad- kemia on October 28. weapons, defected to Jordan. Antici- ministration was correct to respond. John Sturdivant lead the American pating the intelligence coup for the Iraq s apparent retaliatory measures, Federation of Government Employ- United Nations that was to come, the in effect, the refusal to permit United ees—AFGE—since 1988. In fact, in Au- Iraqis decided to preempt the damage States citizens to participate in the gust he won reelection to another the defectors could cause by revealing U.N. inspection teams enforcing Secu- term. To say that he will be missed is a wealth of documents—over half-a- rity Council resolutions, has been ap- an understatement. million pages—detailing their biologi- propriately rejected by members of the Although we did not always agree cal weapons program. Mr. President, Council. over the years, there was never any 150 steel trunks and boxes stuffed with The problem lies in the political en- question of John’s ultimate goal—pro- documentation that was to have been vironment Council members France tection of the interests of Federal em- turned over in the aftermath of the and Russia continue to create that en- ployees. Persian Gulf war, yet would likely courages Saddam to believe he can act John Sturdivant was a strong leader have remained hidden indefinitely had with impunity. It is absolutely impera- and forceful defender of the rights of the defections not occurred, suddenly tive that the administration commu- Federal employees. He recognized the and miraculously appeared. nicate to these countries, as well as to need for public servants. Federal em- Iraq’s refusal to abide by the rules of others sympathetic to the plight of the ployees provide a necessary and valu- civilized society and to test the will of Iraqi people, that the sanctions must able service to our country. They the international community has been remain in place until Iraq finally does should not be misunderstood or mis- manifested in other ways also. In Octo- what it has resisted doing for 6 years: treated or maligned. John was himself ber 1994, it moved thousands of troops abide by the conditions of the cease a good public servant and worked hard toward the Kuwaiti border, precipitat- fire. Saddam himself holds his coun- to be a strong advocate.∑ November 5, 1997 CONGRESSIONAL RECORD — SENATE S11787 IN SUPPORT OF ENLARGING NATO war and now in Bosnia, NATO enlarge- Russia will blow. Any ambiguity in our TO INCLUDE THE NEW INVITEES ment is the cheapest single investment commitment to the Baltic countries AND THE BALTIC COUNTRIES we can make. can only encourage those forces in Rus- ∑ Mr. DURBIN. Mr. President, I rise Aside from the costs, we get real ben- sia which have not reconciled them- today in support of enlarging the efits from NATO enlargement. As Sec- selves to the transformation of the So- NATO alliance to include the current retary Albright and other administra- viet Union. We must make it clear that invitees of Poland, Hungary, and the tion officials have repeatedly and con- Russia is welcome to cooperate with Czech Republic during this round, and vincingly pointed out, NATO enlarge- the undivided, free, prosperous, and se- the Baltic countries of Lithuania, Lat- ment will deter future threats, prevent cure Europe that is being built. How- via, and Estonia during the next round. the development of a dangerous power ever, it can only do so if it is prepared For the past few weeks, various Senate vacuum in the heart of Europe, make to recognize one of the cardinal prin- committees have been reviewing the border and ethnic conflicts far less ciples of the new Europe, articulated costs of bringing Poland, Hungary, and likely and solidify democratic institu- by Secretary of State Albright during the Czech Republic into NATO. The ad- tions and free markets in Europe. Just her visit to Lithuania last July: that ministration estimates the entire cost as importantly, the United States will all States, large and small must have for this first round of NATO enlarge- be gaining strong new allies in Poland, the right to choose their own alliances ment at $27–$35 billion in the 13-year Hungary, and the Czech Republic, who and associations. period from 1997 to 2009. Opponents sug- between them will add 300,000 troops to By their actions, the Baltic States gest that the actual costs might actu- the alliance. The costs of enlargement have clearly made their choice known. ally be much higher, although we will will fall heaviest on them, but these They have applied for membership in really not have a clear picture until countries know the price of freedom. NATO and the European Union, they after new estimates are made early Each country has been invaded more participate in NATO’s Partnership for next year based on a commonly agreed- than once this century and each suf- Peace program and they are contribut- upon set of military requirements that fered under Communist domination for ing directly to NATO’s security by co- NATO ministers will decide on in De- over 40 years. They understand that operating on a regional airspace initia- cember. In any case, two things are their own security is indivisible from tive. By providing troops for NATO-led clear. First, most of these costs would that of the rest of Europe and have al- operations in Bosnia and by participat- have to be paid anyway—even if NATO ready expressed their commitment to ing in the Vilnius Conference on good did not enlarge. Second, the U.S. share be producers of security, and not mere- neighborly relations hosted by Lithua- of the total costs will be relatively ly consumers, by cooperating with nia in September, they have shown small. NATO forces to implement the Dayton their willingness to be producers, not As part of the present effort to en- accords in Bosnia. just consumers, of security. Having large NATO, Poland, Hungary, and the If we refuse to enlarge NATO, we been invaded by both Stalin and Hitler Czech Republic must restructure and would have told these countries that and having suffered 50 years of Com- modernize their armed forces. However, despite their epic and inspiring strug- munist occupation, the people of the they would need to do this in any case gle to liberate themselves from com- Baltic countries, no less than the peo- and the costs of doing so would prob- munism, the West had once again ple of Poland, Hungary, and the Czech ably be much higher without enlarge- turned its back on them. Even worse, Republic, know the price of freedom ment, since they would have to rely en- we would leave Central Europe without and are willing to pay for it. tirely on their own resources to protect an effective security system, creating a If we are serious about our commit- themselves. Additionally, current Eu- heightened sense of insecurity in these ment to create a Europe that is whole ropean NATO members must reconfig- countries, forcing them to devote more and free, than the Baltic countries ure their forces so they are more flexi- resources to military expenditures, and must be included. For that reason, the ble and more easily deployed; but these lowering their potential for economic United States must make it absolutely changes result from the requirements growth. Under these circumstances, a clear at the earliest possible moment of NATO’s New Strategic Concept backlash against Western values might that it supports NATO membership for agreed on by all alliance members in very well develop, yielding a vicious Lithuania, Latvia, and Estonia.∑ 1991, and not from enlargement as cycle of authoritarianism, militarism, f such. These enlargement costs will be economic stagnation, and greater con- THE 50TH ANNIVERSARY OF paid for by our allies and not by us. flict between neighbors—a pattern this MADONNA UNIVERSITY From our perspective, these enlarge- region has seen in the past. This would ment costs should really be seen as inevitably bring more problems for the ∑ Mr. ABRAHAM. Mr. President, today benefits—improvements to NATO’s se- United States in Europe. I rise to pay tribute to Madonna Uni- curity paid for by our allies, not by us. Some have asked what’s the hurry versity on the occasion of its 50th anni- The only extra costs of the current over NATO enlargement. Surely, the versary. As a school which emphasizes round of NATO enlargement are the so- end of the cold war gives us plenty of academic, social, and spiritual develop- called direct costs of enlargement, time to contemplate so momentous a ment, Madonna has established a tre- which include such things as upgrading decision. However, if we don’t enlarge mendous presence in southeast Michi- communications, air defenses, and in- now when it’s relatively easy and inex- gan, enhancing the quality of life for frastructure for rapid reinforcement. pensive, how can we be sure that we’ll its students through an excellent array These costs would be borne jointly by be ready to respond to a crisis in time? of campus activities and academic pro- all NATO members with the United We were slow to respond to World War grams. States paying roughly one-quarter of I, World War II, and Yugoslavia out of Having converted to a 4-year liberal the cost. This means that for every dol- the fear of the costs. If we wait until a arts college in 1947, Madonna rapidly lar we put toward these direct costs, crisis develops, our capacity to deal continued its expansion of academic our allies, old an new, would put in with it early on will be less, the costs services. It was recognized by the three. You can’t get better value for will be higher and our reluctance will Michigan Board of Education in 1954, your money than that. Thus, the range be greater. Let’s make the decision to and just a short time later added nurs- of costs the United States would have enlarge now. ing, gerontology, religious studies, to pay for the present round of enlarge- I would remind my colleagues that as criminal justice, and radiologic tech- ment over the next 13 years would be the debate over this issue draws near, nology to its list of 4-year programs. somewhere between $2 billion—if you we must also look beyond the present Thereafter other programs have been believe the administration’s figures— round of enlargement. In particular, we added, though there are too many to and $7 billion—if you believe the recent must pay especially close attention to mention by name. In 1975, Madonna report by the CATO Institute. Given Lithuania, Latvia, and Estonia. College opened special services to stu- the millions of lives lost in World War Given their geography and history, dents with hearing and other disabil- I and II, and the billions of dollars the Baltic countries are a weather vane ities. In 1991, changed its name to Ma- spent during these conflicts, the cold indicating which way the winds from donna University, and 1 year later the S11788 CONGRESSIONAL RECORD — SENATE November 5, 1997 school reached an enrollment high of sistant Administrator for Equal Opportunity fiscal year 1998 Interior appropriations over 4,400 students. Programs at NASA. She helped NASA inte- bill. Among the projects mentioned Of the university’s many accomplish- grate its workforce and ensure equal oppor- were three items which should not ments, the one which Madonna tunity in personnel transactions. During this have been listed. They are as follows: achieves year after year is a rapport period, she helped initiate a significant in- crease in the number of female and minority $1.5 million for the home energy rating among students of being a school big employees, particularly in the non-tradi- system; $1 million for the weatheriza- enough to offer a vast selection of edu- tional positions of engineers, scientists and tion assistance program; and $25,000 for cational opportunities, but small astronauts. She also assisted with the expan- State energy program grants. enough to offer them in a personal sion of educational programs and scientific Mr. President, these three line items manner. When most universities are research for minority universities. do not violate the criteria I use for de- looking to cut costs through larger In 1992, Harriett Jenkins was chosen by the termining low-priority, unnecessary, or class sizes, I’m pleased to say Madonna Majority and Minority Leaders and ap- wasteful spending that was not re- pointed by the President pro tempore of the University is one place where the pro- United States Senate to be the first Director viewed in the appropriate merit-based fessors still know their students by of the newly established Office of Senate prioritization process. Unfortunately, name. Fair Employment Practice. In 1996–1997, she these three items were inadvertently Mr. President, on behalf of the U.S. served as counsel and professional staff included on the list. I regret this error, Senate, I commemorate the outstand- member on the Senate Committees on Agri- and withdraw my recommendation ing tradition of excellence maintained culture, Forestry and Nutrition, Labor and that these items be line-item vetoed.∑ Human Resources, and Judiciary. In June, by the faculty, staff, students, and f alumni of Madonna University.∑ 1997, she was appointed as Special Assistant to Commissioner Reginald Jones of the U.S. TIME TO RECONSIDER ‘RACIST’ f Equal Employment Opportunity Commission RHETORIC until her retirement on September 30, 1997. RETIREMENT OF DR. HARRIETT G. ∑ Mr. ABRAHAM. I would like to bring JENKINS In this position, she made critical contribu- tions to the report of the EEOC task force on to my colleagues, attention a recent ∑ Mr. LEAHY. Mr. President, I submit the ‘‘Best’’ Equal Employment Opportunity article in Asian Week by Susan Au for the RECORD a joint statement by Policies, Programs and Practices in the Pri- Allen, president of the United States myself and Senator JEFFORDS on the vate Sector. Pan Asian American Chamber of Com- retirement of Dr. Harriett G. Jenkins. Dr. Jenkins has received numerous awards merce, who points out Senator throughout her prestigious career. In 1977, The statement follows: BROWNBACK’s significant work on be- Dr. Jenkins received NASA’s highest award, JOINT STATEMENT BY SENATOR PATRICK the Distinguished Service Medal. Also during half of Asian Pacific American fami- LEAHY AND SENATOR JAMES JEFFORDS ON 1977, she chaired the Task Force on Equal lies. It was Senator BROWNBACK who THE RETIREMENT OF DR. HARRIETT G. JEN- Opportunity and Affirmative Action, one of stood up in the House of Representa- KINS nine task forces of the Personnel Manage- tives last year and opposed those who On September 30, 1997, Dr. Harriett G. Jen- ment Project which led to the Civil Service wanted to slash family immigration. If kins officially retired after twenty-five years Reform Act. For this work, she received the the elimination of the brothers and sis- of service in the executive and legislative Civil Service Commissioner’s Award for Dis- branches of our government. Her outstand- ters and adult children categories had tinguished Service. Dr. Jenkins received the passed, tens of thousands of Asian Pa- ing contributions in the field of education, at President’s Meritorious Executive Award in the National Aeronautics and Space Admin- 1980; NASA’s Outstanding Leadership Medal cific families would have been unable istration (NASA), the Office of Senate Fair in 1981; and the President’s Distinguished to reunite with their loved ones. Ms. Employment Practices, the Senate Commit- Executive Award in 1983. Allen writes, ‘‘When the chips were tees on Agriculture, Labor, and Judiciary, In 1986, Dr. Jenkins was elected to the Na- down last year, he came through to and at the U.S. Equal Employment Oppor- tional Academy of Public Administration; preserve freedom for our close family tunity Commission (EEOC) have won her the and in 1987, she received the Black Engineer respect and admiration of everyone who has members to immigrate to the United of the Year Award for Affirmative Action. In States. And for that Asian Pacific been privileged to work with her. Her im- 1988, she received a second Distinguished pressive career in public service spanned 19 Service Medal from NASA; in 1990, the American families across America are years as a public school educator in Berke- Women in Aerospace Lifetime Achievement grateful to him.’’ ley, California, and carried through her most Award; in 1992, NASA’s Equal Employment I ask that the text of the article by recent and superior performance as Special Opportunity Medal, and the President’s Mer- Susan Au Allen be printed in the Assistant to Commissioner Reginald Jones of itorious Executive Award; and in 1994, RECORD. the EEOC. In appreciation of her outstanding NASA’s Equal Employment Opportunity The article follows: service, we want to recognize her many Medal. In September, 1997, she was awarded a TIME TO RECONSIDER ‘RACIST’ RHETORIC achievements. citation by the EEOC for her distinguished (By Susan Au Allen) Dr. Jenkins was born in Fort Worth, Texas, service to the Task Force on the ‘‘Best’’ and received a Bachelor of Arts Degree in Equal Employment Opportunity Policies, No pain, no gain. No money, no talk. No Mathematics from Fisk University in Nash- Programs and Practices in the Private Sec- raise money, no get bonus. Are these offen- ville, Tennessee. She earned a Master of Arts tor. sive words? Several Asian Pacific American Degree in Education and a Doctorate of Edu- Integrity, intelligence, and commitment to organizations think so. The Organization of cation in Policy, Planning and Administra- doing the best job possible are characteris- Chinese Americans, the Congressional Asian tion, both from the University of California tics that describe Dr. Jenkins. She has Pacific American Caucus Institute, and the at Berkeley. She completed the Advanced worked tirelessly to advance the goals of Asian Pacific American Legal Consortium Management Program of the Harvard Busi- protecting the American worker from dis- have been complaining unfairly about a ness School; obtained a law degree from crimination in the workplace and tear down phrase that Sen. Brownback, R–Kan., uttered Georgetown University, Washington, D.C., the barriers preventing women and minori- during a recent Senate Governmental Affairs and was awarded an Honorary Doctorate of ties from reaching full employment poten- Committee hearing on the Democratic Par- Science Degree from Fisk University. tial. ty’s campaign finance scandal. Dr. Jenkins began her career as a public Dr. Jenkins is leaving government service, The argument is that the ‘‘So no raise school educator in Berkeley, California, and but her legacy of dedication to fairness and money, no pay bonus’’ phrase is racist. I saw rose through the ranks to become vice-prin- equality in the workplace will enrich and en- the videotape of the occasion and did not cipal, principal, and Director of Elementary lighten workers for generations to come. We find it offensive. Education before reaching the post of Assist- personally want to thank Dr. Jenkins for her Sen. Brownback was speaking to an edu- ant Superintendent for Instruction in 1971. long career in government service as a friend cated white male, Richard Sullivan, former She assisted with the integration of the and advisor and wish her the very best in her finance director of the Democratic National school system, fully involving parents and retirement years.∑ Committee. The senator neither mimicked the community, and with the implementa- f nor changed the tone of his voice. He was tion of many exemplary educational pro- drawing a conclusion to a series of questions grams. In 1973, Dr. Jenkins moved to Wash- FISCAL YEAR 1998 INTERIOR AP- he asked Sullivan, who was playing escape, ington, D.C., accepting the position of con- PROPRIATIONS CONFERENCE RE- evasion, and dissemble. The senator wanted sultant to the District of Columbia school PORT Sullivan to tell the truth about the unusual system for the Response to Educational compensation package that former DNC Needs Project. ∑ Mr. MCCAIN. Mr. President, on Octo- fundraiser John Huang negotiated with the In 1974, Dr. Jenkins joined the staff at ber 24, I submitted for the RECORD, a Democratic Party—the same truth Sullivan NASA. She served for eighteen years as As- list of objectionable provisions in the told investigators in an earlier deposition. November 5, 1997 CONGRESSIONAL RECORD — SENATE S11789 The senator asked, ‘‘If he didn’t produce, Urban Affairs reported S. 318, the 1995 (UMRA). CBO estimates, however, that no more money. You said, ‘‘If things worked Homeowners Protection Act on Friday, the direct costs of complying with the man- out,’’ were your terms. Is that correct? October 31, 1997. The committee report, dates would not likely exceed the thresholds But the recalcitrant Sullivan did his best Senate Report No. 105–129, was filed the specified in UMRA ($100 million for private- to duck the question and replied incoher- sector mandates and $50 million for intergov- ently, ‘‘Yes. But, senator, if he—he never same day. ernmental mandates, in 1996 dollars adjusted raised it, and it was more of a—if he had The Congressional Budget Office cost annually for inflation). raised it, we—as I’ve stated, we had no rea- estimate required by Senate Rule Estimated cost to the Federal Government son to believe anything was improper or ille- XXVI, section 11(b) of the Standing Direct spending gal. And if he had raised it in April or May Rules of the Senate and section 403 of I’m certain that it would have been met.’’ the Congressional Budget Impound- Current law requires the Thrift Depositor The truth is that when John Huang took a Protection Oversight Board to monitor the pay cut to become the Democratic National ment and Control Act, was not avail- operations and spending of the Resolution Committee’s top fundraiser, he was paid a able at the time of filing and, there- Trust Corporation (RTC). The RTC was a base salary of $60,000, plus a bonus based on fore, was not included in the commit- temporary agency established to resolve the amount of money he would raise. To tee report. Instead, the committee in- thrift failures beginning in 1989. In late 1995 close the circle, Sen. Brownback concluded dicated the Congressional Budget Of- the RTC was dissolved and its remaining as- with a straight face, ‘‘So, no raise money, no fice cost estimate would be published sets were transferred to the Federal Deposit get bonus.’’ Even Sen. Daniel Inouye, D-Ha- Insurance Corporation. The Oversight Board waii, said that Brownback ‘‘didn’t mean to in the CONGRESSIONAL RECORD when it became available. now retains responsibility for only two func- slight anybody by this remark.’’ tions. The first is to oversee operations of Now, why would these Asian Pacific Amer- Mr. President, I ask that the full cost the Resolution Funding Corporation ican organizations get so offended by that re- estimate and cover letter from the (REFCORP), which issued bonds totaling $30 mark? Every time they make a public state- Congressional Budget Office regarding ment about the campaign finance scandal, billion from 1989 to 1991 as part of RTC’s ini- S. 318 be printed in the RECORD. the leaders of these groups mention the sen- tial funding. Second, the Oversight Board re- ator’s utterance. Why? It’s clear that a num- The material follows: tains a nonvoting membership, through the ber of these groups are led by, for the lack of U.S. CONGRESS, end of 1998, on the Affordable Housing Advi- a better word, liberals. As friends of the Clin- CONGRESSIONAL BUDGET OFFICE, sory Board. By terminating the Oversight ton-Gore administration, groups like the Or- Washington, DC, November 4, 1997. Board, the bill would eliminate the annual ganization of Chinese Americans, the Con- Hon. ALFONSE M. D’AMATO, costs for the one employee of the board who gressional Asian Pacific American Caucus Chairman, Committee on Banking, Housing, prepares periodic reports required of all dis- Institute, and the Asian Pacific American and Urban Affairs, U.S. Senate, Washing- tinct entities of the government and per- Legal Consortium are playing partisan poli- ton, DC. forms other routine functions. Based on in- tics and, quite implausibly, becoming more DEAR MR. CHAIRMAN: The Congressional formation from the Treasury, CBO estimates outraged at a single misinterpreted com- Budget Office has prepared the enclosed cost that transferring the statutory responsibil- ment by a Republican senator than by Demo- estimate for S. 318, the Homeowners Protec- ities of the Oversight Board to the Treasury cratic Party individuals, including the presi- tion Act. would result in savings of about $250,000 an- dent, whose fundraising improprieties have If you wish further details on this esti- nually in direct spending. Because the Over- cast aspersions on millions of law-abiding mate, we will be pleased to provide them. sight Board has the authority to pay its ex- Asian Pacific Americans. The CBO staff contacts are Susanne S. penses without appropriation action, these Their complaint against Sen. Brownback is Mehlman and Mary Maginniss (for federal savings would be a reduction in direct spend- out of place and, more importantly, shows a costs), Marc Nicole (for the state and local ing. lack of serious interest in the truth. Other- impact), and Patrice Gordon (for the private- This bill also would affect insured deposi- wise, they would have found out that Sen. sector impact). tory institutions, including banks, thrifts, Brownback is a true friend of the Asian Pa- Sincerely, and credit unions that hold qualifying mort- cific American community. In 1996, Congress JUNE E. O’NEILL, Director. gage portfolios. As a result, the federal bank- was debating a contentious immigration bill Enclosure. ing regulators—the Federal Reserve, the which could cut legal immigration by one- CONGRESSIONAL BUDGET OFFICE COST ESTIMATE Comptroller of the Currency, the Federal De- third. The proposed bill would stop American S. 318—Homeowners Protection Act posit Insurance Corporation, the National citizens from petitioning for their parents, Credit Union Administration, and the Office Summary: S. 318 would institute certain adult children, brothers, and sisters for im- of Thrift Supervision—would have some re- reforms in the private mortgage insurance migration. sponsibility to monitor and enforce the stat- industry. First, the bill would require mort- However, the senator introduced the fa- ute. Spending by these agencies is not sub- gage lenders and loan servicers to notify bor- mous Brownback amendment which pre- ject to the annual appropriation process. rowers of their right to cancel mortgage in- served all these immigrant categories in the However, CBO expects that the additional surance and of the procedures to do so. For law. Not only did he cosponsor the amend- regulatory costs for these agencies would be each loan made one year or more after enact- ment, he worked very hard to persuade two small and offset by fees in most cases, result- ment, the bill would provide for the auto- dozen Republicans to fight the cut in legal ing in no significant net cost to the federal matic cancellation of mortgage insurance immigration. He told those who would listen government. that ‘‘It’s wrong for us to turn the clock (including coverage provided by state and back to the 1920s when we shut the door to local governments) when the outstanding Spending subject to appropriation immigrants.’’ Because of this, tens of thou- principal balance on the loan drops to 78 per- Spending by the Treasury to carry out the sands of Asian Pacific Americans are and cent of the value of the home at the time the routine functions of the Oversight Board will be able to petition for their parents, loan was issued, provided the borrower’s pay- would be subject to appropriation. CBO esti- adult children, brothers, and sisters for im- ments are current. S. 318 would establish dis- mates that any additional spending would be migration. Perhaps these Asian Pacific closure procedures for the providers of lend- minimal. In addition, reducing the number American organizations did not know about er-paid mortgage insurance and would im- of times the Affordable Housing Advisory his work at the time because they only pose civil liability on any mortgage servicer Board must meet annually is not expected to worked with the Democratic side of Con- who failed to comply with the requirements result in any significant savings. Also, CBO gress. of this bill. S. 318 also would dissolve the estimates that imposing civil liability on Now all of them should know who their Thrift Depositor Protection Oversight Board mortgage servicers who do not comply with friends are and who their enemies are. As to and transfer its remaining responsibilities to the requirements under the bill would not re- the enemy? Well, who got them into this the Department of the Treasury. In addition, sult in any significant costs to the federal campaign finance scandal in the first place? the bill would reduce from four to two the court system because the caseload is ex- Try President Clinton, Al Gore, and the number of annual meetings the Affordable pected to be minimal and any cases reaching Democratic National Committee. And who is Housing Advisory Board must hold each trial would most likely be tried in state a true friend to Asian Americans? Try Sen. year. courts. Brownback. When the chips were down last CBO estimates that enacting S. 318 would Pay-as-you-go considerations: Section 252 year he came through to preserve freedom result in savings of about $250,000 a year in of the Balanced Budget and Emergency Defi- for our close family members to immigrate outlays from direct spending. Because the cit Control Act of 1985 sets up pay-as-you-go to the United States. And for that, Asian Pa- bill would affect direct spending, pay-as-you- procedures for legislation affecting direct cific American families across America are go procedures would apply. We also estimate spending or receipts. Legislation providing grateful to him.∑ that enacting this bill would not result in funding necessary to meet the government’s f any significant impact on federal spending existing deposit insurance commitment is CBO COST ESTIMATE—S. 318 subject to appropriation. excluded from these procedures. CBO be- S. 318 would impose both private-sector lieves that requiring insured depository in- ∑ Mr. D’AMATO. Mr. President, the and intergovernmental mandates as defined stitutions to terminate private mortgage in- Committee on Banking, Housing, and in the Unfunded Mandates Reform Act of surance would not meet the exemption for S11790 CONGRESSIONAL RECORD — SENATE November 5, 1997 full funding of deposit insurance and thus cancellation rights under PMI and give the quire that borrowers be notified of their would have pay-as-you-go implications. borrower an amortization schedule. The am- rights to cancel mortgage insurance, these Spending by the federal banking regulators ortization schedule would be used to deter- bills differ in their requirements for auto- to monitor and enforce the provisions of the mine a termination date at which the bor- matic cancellation of mortgage insurance. bill is estimated to be small, however, and in rower would no longer be required to pay in- H.R. 607 would require automatic cancella- most cases would be offset be fees charged to surance premiums. The bill also would re- tion of mortgage insurance when the mort- the depository institutions, resulting in no quire, before closing, mandatory disclosures gage has an LTV of 75 percent (or less) while significant net cost to the federal govern- to purchasers of lender-paid mortgage insur- S. 318 would require automatic cancellation ment. Eliminating the Thrift Depositor Pro- ance indicating that lender-paid mortgage of mortgage insurance when the mortgage tection Oversight Board would reduce direct insurance may not be canceled. After the ini- has an LTV of 78 percent (or less). spending, but these savings would also be in- tial disclosure at loan origination, loan On September 17, 1997, CBO provided an es- significant. servicers would be required to notify borrow- timate for H.R. 2343, a bill to terminate the Intergovernmental and private-sector im- ers with ‘‘borrower-paid’’ PMI (including ex- Thrift Depositor Protection Oversight Board, pact: S. 318 would impose both private-sector isting loans with PMI) of their cancellation as ordered reported by the House Committee and intergovernmental mandates as defined rights in an annual written statement. on Banking and Financial Services on Sep- in UMRA. The bill contains mandates on Estimated Costs of Mandates tember 9, 1997. S. 318 would also eliminate the Oversight Board and would transfer its mortgage lenders, loan servicers, purchasers In the first year after enactment, the total remaining responsibilities to the Depart- of mortgage loans, and private mortgage in- costs of the mandates would consist of the surance (PMI) companies in the mortgage in- ment of the Treasury. costs to lenders and services of modifying Estimate prepared by: Federal Costs: Su- dustry. Provisions in the bill would be en- systems to accommodate the transmittal forced by private law suits. CBO estimates sanne S. Mehlman, for private mortgage in- and storage of additional data. Lenders and surance. Mary Maginniss, for federal deposit that the annual direct costs of complying servicers would also have to modify software with mandates identified in this bill are not insurance. Impact on State, Local, and Trib- programs to provide the required additional al Governments: Marc Nicole. Impact on the likely to exceed the statutory thresholds for disclosures to borrowers and to develop the private-sector or intergovernmental man- Private Sector: Patrice Gordon. procedures to trigger automatic termination Estimate approved by: Robert A. Sunshine, dates. Inasmuch as state and local govern- of PMI insurance for eligible borrowers. In Deputy Assistant Director for Budget Analy- ments finance mortgage loans and service total, the initial ‘‘set-up’’ costs should be sis. and insure some of the loans extended, they ∑ somewhat below $100 million dollars. After f would bear some of the costs of complying an initial set-up period of about one year, with these mandates. CBO estimates that at costs would likely drop. The bulk of costs in VETERANS’ COMPENSATION COST- least 95 percent of all identified costs would the second year would cover disclosure at or OF-LIVING ADJUSTMENT ACT OF fall on the private sector, less than 5 percent before settlement to roughly one million 1997 of the costs would be borne by state and borrowers required to purchase PMI insur- local governments. ance and annual disclosure to about five mil- Mr. NICKLES. Madam President, I Private mortgage insurance protects lend- lion borrowers who already have borrower- ask unanimous consent that the Sen- ers—or the ultimate purchaser of a mortgage paid PMI insurance. ate proceed to the consideration of Cal- loan, such as Fannie Mae or Freddie Mac— CBO estimates that costs to the mortgage endar No. 245, H.R. 2367. against financial loss if a borrower defaults industry would gradually start to rise again The PRESIDING OFFICER (Ms. COL- on a mortgage loan. Industry data show that in a few years as the cost to servicers of ter- LINS). The clerk will report. the lower the down payment, as a percentage minating PMI policies, and the loss of pre- of the property value, the greater is the risk The assistant legislative clerk read mium income to PMI companies start to ac- as follows: that the loan will default. Mortgage insur- cumulate. Most loans to which automatic ance is generally used when a borrower termination would apply would not reach an A bill (H.R. 2367) to amend title 38, United makes a down payment of less than 20 per- LTV ratio of 78 percent to qualify for termi- States Code, to provide a cost-of-living ad- cent of the value of the home—that is, when nation until well after the five-year period of justment in the rates of disability compensa- the mortgage has a loan-to-value (LTV) ratio analysis required by UMRA. tion for veterans with service-connected dis- abilities and the rates of dependency and in- greater than 80 percent. In 1996, the eight Estimated impact on State, local and tribal gov- demnity compensation for survivors of such PMI companies backed nearly one million ernments residential mortgage loans and a total of $127 veterans. Because state and local governments par- billion in loans were covered by PMI. ticipate in mortgage financing, they would The PRESIDING OFFICER. Is there Mandates bear some of the compliance costs of S. 318. objection to the immediate consider- S. 318 would allow borrowers to request CBO estimates that the state and local share ation of the bill? cancellation of a PMI policy after paying off of such costs would total less than $5 million There being no objection, the Senate 20 percent of the property’s original value. a year. All 50 states and some local govern- proceeded to consider the bill. To be eligible for policy cancellation at 20 ments finance mortgages (primarily with Mr. NICKLES. Madam President, I percent equity, the bill would require that a mortgage revenue bonds), 21 states service at ask unanimous consent that the bill be borrower (1) make a written request for can- least a portion of their own mortgage port- considered read a third time and cellation; (2) be current on mortgage pay- folio, and seven states insure mortgages. ments; (3) certify that he or she holds no sec- passed, the motion to reconsider be (The definition of private mortgage insur- laid upon the table, and any state- ond mortgages on the property; and (4) dem- ance used in this bill includes insurance pro- onstrate that the property’s value has not vided by state governments. Only insurance ments relating to the bill be printed in depreciated below its value at closing. S. 318 provided by the federal government is ex- the RECORD. would require that private mortgage insur- cluded.) Based on data from the National The PRESIDING OFFICER. Without ance be canceled once a borrower has Council of State Housing Agencies and objection, it is so ordered. reached 22 percent equity unless the insur- Standard and Poors, CBO estimates that The bill (H.R. 2367) was read a third ance covers a ‘‘high-risk’’ loan. Borrowers state and local governments are involved in time, and passed. with loans deemed to be high risk according less than 5 percent of mortgages that have f to guidelines to be developed by the Federal private mortgage insurance. Their share of National Mortgage Association and the Fed- the costs would thus be relatively small. NATIVE AMERICAN VETERAN eral Home Loan Mortgage Corporation would S. 318 would also impose an additional HOUSING LOAN PROGRAM ACT not qualify for early cancellation. Such bor- mandate on state governments by preempt- rowers, however, would have their insurance ing certain state laws pertaining to the ter- Mr. NICKLES. Madam President, I terminated at the half-life of the loan. Upon mination or cancellation of private mort- ask unanimous consent that the Sen- termination of PMI insurance, the bill would gage insurance or the disclosure of certain ate now proceed to the consideration of require that servicers (and PMI companies) information addressed by the bill. Based on Calendar No. 236, Senate bill 714. refund to the borrower any premiums al- discussions with mortgage industry officials The PRESIDING OFFICER. The ready paid for the period beyond the termi- and a review of certain state mortgage insur- clerk will report. nation date. ance laws, CBO estimates that this mandate The assistant legislative clerk read Beginning one year after enactment, S. 318 would impose no significant costs on state as follows: would require lenders and servicers to pro- governments nor would it result in the loss A bill (S. 714) to make permanent the Na- vide written disclosures about insurance can- of any revenue. tive American Veteran Housing Loan Pilot cellation rights to borrowers who are re- Previous CBO estimates: On April 7, 1997, Program of the Department of Veterans’ Af- quired by creditors to obtain private mort- CBO provided an estimate for H.R. 607, the fairs. gage insurance as a condition for entering Homeowners Insurance Protection Act, as into a residential mortgage agreement. S. 318 ordered reported by the House Committee on The PRESIDING OFFICER. Is there would require that the lender notify the bor- Banking and Financial Services on March 20, objection to the immediate consider- rower in writing at or before closing of his 1997. While both H.R. 607 and S. 318 would re- ation of the bill? November 5, 1997 CONGRESSIONAL RECORD — SENATE S11791 There being no objection, the Senate ‘‘(A) a description of such activities on a re- Mr. NICKLES. Madam President, I proceeded to consider the bill which gion-by-region basis; and ask unanimous consent that the com- had been reported from the Committee ‘‘(B) an assessment of the effectiveness of mittee amendment be agreed to, the such activities in encouraging the participation on Veterans’ Affairs, with an amend- of Native American veterans in the pilot pro- bill be considered a third time, and ment to strike all after the enacting gram; passed, the motion to reconsider be clause and inserting in lieu thereof the ‘‘(5) the pool of Native American veterans who laid upon the table, the title amend- following: are eligible for participation in the pilot pro- ment be agreed to, and any statements SECTION 1. EXTENSION AND IMPROVEMENT OF gram, including— relating to the bill be printed in the NATIVE AMERICAN VETERAN HOUS- ‘‘(A) a description and analysis of the pool; RECORD. ING LOAN PROGRAM. and The PRESIDING OFFICER. Without (a) EXTENSION.—Section 3761(c) of title 38, ‘‘(B) a description and assessment of the im- objection, it is so ordered. United States Code, is amended by striking out pediments, if any, to full participation in the ‘‘September 30, 1997’’ and inserting in lieu there- pilot program of the Native American veterans The committee amendment was of ‘‘December 31, 2003’’. in the pool; and agreed to. (b) OUTREACH.—Section 3762(i) of such title is ‘‘(6) the Secretary’s recommendations, if any, The bill was ordered to be engrossed amended— for additional legislation regarding the pilot for a third reading, read the third time, (1) by inserting ‘‘(1)’’ after ‘‘(i)’’; program.’’. and passed. (2) in paragraph (1), as so designated— SEC. 2. EXTENSION OF AUTHORITIES RELATING The title was amended so as to read: (A) by inserting ‘‘, in consultation with tribal TO HOMELESS VETERANS. A bill to extend and improve the Native organizations (including the National Congress (a) DRUG AND ALCOHOL ABUSE AND DEPEND- American Veteran Housing Loan Pilot Pro- of American Indians and the National American ENCE.—Section 1720A(e) of title 38, United States gram of the Department of Veterans Affairs, Indian Housing Council),’’ after ‘‘The Secretary Code, is amended by striking out ‘‘December 31, to extend certain authorities of the Sec- shall’’; and 1997’’ and inserting in lieu thereof ‘‘December retary of Veterans Affairs relating to serv- (B) by striking out ‘‘tribal organizations 31, 1999’’. ices for homeless veterans, to extend certain and’’; and (b) AGREEMENTS FOR HOUSING ASSISTANCE FOR other authorities of the Secretary, and for (3) by adding at the end the following: HOMELESS VETERANS.—Section 3735(c) of such other purposes. ‘‘(2) Activities under the outreach program title is amended by striking out ‘‘December 31, f shall include the following: 1997’’ and inserting in lieu thereof ‘‘December ‘‘(A) Attending conferences and conventions 31, 1999’’. AMENDING THE ACT TO INCOR- conducted by the National Congress of Amer- (c) AUTHORITY FOR COMMUNITY-BASED RESI- PORATE THE AMERICAN LEGION ican Indians in order to work with the National DENTIAL CARE FOR HOMELESS CHRONICALLY Congress in providing information and training MENTALLY ILL VETERANS AND OTHER VETER- Mr. NICKLES. Madam President, I to tribal organizations and Native American vet- ANS.—Section 115(d) of the Veterans’ Benefits ask unanimous consent the Senate now erans regarding the availability of housing ben- and Services Act of 1988 (38 U.S.C. 1712 note) is proceed to the consideration of S. 1377 efits under the pilot program and in assisting amended by striking out ‘‘December 31, 1998’’ introduced earlier today by Senators such organizations and veterans in participat- and inserting in lieu thereof ‘‘December 31, HATCH and LEAHY. ing in the pilot program. 1999’’. The PRESIDING OFFICER. The ‘‘(B) Attending conferences and conventions (d) DEMONSTRATION PROGRAM OF COM- clerk will report. conducted by the National American Indian PENSATED WORK THERAPY.—Section 7(a) of Pub- The assistant legislative clerk read Housing Council in order to work with the lic Law 102–54 (38 U.S.C. 1718 note) is amended Housing Council in providing information and by striking out ‘‘December 31, 1997’’ and insert- as follows. training to tribal organizations and tribal hous- ing in lieu thereof ‘‘December 31, 1999’’. A bill (S. 1377) to amend the act incor- ing entities regarding the availability of such (e) SERVICES AND ASSISTANCE TO HOMELESS porating the American Legion to make a benefits. VETERANS.—The Homeless Veterans Comprehen- technical correction. ‘‘(C) Attending conferences and conventions sive Service Programs Act of 1992 (38 U.S.C. 7721 The PRESIDING OFFICER. Is there conducted by the Department of Hawaiian note) is amended— objection to the immediate consider- Homelands in order to work with the Depart- (1) in section 2(a), by striking out ‘‘September ation of the bill? ment of Hawaiian Homelands in providing in- 30, 1997’’ and inserting in lieu thereof ‘‘Septem- formation and training to tribal housing entities ber 30, 1999’’; There being no objection, the Senate in Hawaii regarding the availability of such (2) in section 3(a)(2), by striking out ‘‘Septem- proceeded to consider the bill. benefits. ber 30, 1997’’ and inserting in lieu thereof ‘‘Sep- Mr. LEAHY. Mr. President, I rise ‘‘(D) Producing and disseminating informa- tember 30, 1999’’; and today to comment on a bill which will tion to tribal governments, tribal veterans serv- (3) in section 12, by striking out ‘‘through amend the act of incorporation of the ice organizations, and tribal organizations re- 1997’’ and inserting in lieu thereof ‘‘through American Legion. I have introduced garding the availability of such benefits. 1999’’. this bill with my colleague from Utah, ‘‘(E) Assisting tribal organizations and Native (f) HOMELESS VETERANS’ REINTEGRATION Senator HATCH, the chairman of the American veterans in participating in the pilot PROJECTS.—(1) Section 738(e)(1) of the Stewart program.’’. B. McKinney Homeless Assistance Act (42 Judiciary Committee. (c) ANNUAL REPORTS.—Section 3762 of such U.S.C. 11448(e)(1)) is amended by adding at the Last year, Congress expanded the title is further amended by adding at the end end the following: dates of the Vietnam war for purposes the following: ‘‘(G) $10,000,000 for fiscal year 1999.’’. of veterans benefits by shifting the of- ‘‘(j) Not later than February 1 of each of 1998 (2) Section 741 of such Act (42 U.S.C. 11450) is ficial start of the war from December through 2003, the Secretary shall transmit to the amended by striking out ‘‘December 31, 1997’’ 22, 1961, to February 28, 1961. The bill Committees on Veterans’ Affairs of the Senate and inserting in lieu thereof ‘‘December 31, before the Senate makes a similar 1999’’. and House of Representatives a report relating change in the Legion’s charter. When to— SEC. 3. EXTENSION AND EXPANSION OF EN- ‘‘(1) the implementation of the pilot program HANCED-USE LEASE AUTHORITY. we pass this into law the Legion will be under this subchapter during the fiscal year (a) EXPANSION.—Section 8168(a) of title 38, able to extend membership to those preceding the date of the report; United States Code, is amended by striking out men and women who served honorably ‘‘(2) the Secretary’s exercise during such fiscal ‘‘20’’ and inserting in lieu thereof ‘‘40’’. on active duty in the U.S. Armed year of the authority provided under subsection (b) EXTENSION.—Section 8169 of such title is Forces during the early years of the (c)(1)(B) to make loans exceeding the maximum amended by striking out ‘‘December 31, 1997’’ Vietnam war. I am hopeful that we can loan amount; and inserting in lieu thereof ‘‘December 31, pass it by unanimous consent today, ‘‘(3) the appraisals performed for the Sec- 1999’’. and have it signed into law by the retary during such fiscal year under the author- SEC. 4. EXTENSION OF CERTAIN OTHER AU- ity of subsection (d)(2), including a description THORITIES OF THE SECRETARY OF President before we adjourn for the of— VETERANS AFFAIRS. year. ‘‘(A) the manner in which such appraisals (a) PILOT PROGRAM FOR NONINSTITUTIONAL Mr. President, this modest change were performed; ALTERNATIVES TO NURSING HOME CARE.—Sec- will mean a lot to the veterans from ‘‘(B) the qualifications of the appraisers who tion 1720C(a) of title 38, United States Code, is that period who wanted the oppor- performed such appraisals; and amended by striking out ‘‘December 31, 1997’’ tunity to join the American Legion but ‘‘(C) the actions taken by the Secretary with and inserting in lieu thereof ‘‘December 31, never could. They have waited for more respect to such appraisals to protect the inter- 1999’’. ests of veterans and the United States; (b) HEALTH PROFESSIONAL SCHOLARSHIP PRO- than 35 years to have the privilege of ‘‘(4) the outreach activities undertaken under GRAM.—Section 7618 of such title is amended by becoming Legionnaires. We should not subsection (i) during such fiscal year, includ- striking out ‘‘December 31, 1997’’ and inserting make them wait one day longer. ing— in lieu thereof ‘‘December 31, 1999’’. I yield the floor. S11792 CONGRESSIONAL RECORD — SENATE November 5, 1997 Mr. NICKLES. Madam President, I (2) if the total printing and production UNANIMOUS-CONSENT ask unanimous consent that the bill be costs of copies in paragraph (1) exceed AGREEMENT—S. 1253 $150,000, such number of copies of the publi- considered read a third time and Mr. NICKLES. Madam President, I passed, the motion to reconsider be cation as does not exceed total printing and production costs of $150,000, with distribu- ask unanimous consent that if and laid upon the table, and that any state- tion to be allocated in the same proportion when S. 1253 is reported by the Energy ments relating to the bill be printed in as in paragraph (1). Committee, it be referred to the Agri- the RECORD. culture Committee solely for the pur- The PRESIDING OFFICER. Without S. CON. RES. 62 pose of considering matters within its objection, it is so ordered. Resolved by the Senate (the House of Rep- jurisdiction for not to exceed 40 days of The bill (S. 1377) was read the third resentatives concurring), That (a) a revised Senate session. I further ask that if the time and passed, as follows: edition of the brochure entitled ‘‘How Our Agriculture Committee has not re- S. 1377 Laws Are Made’’, under the direction of the ported the matter after that period, Be it enacted by the Senate and House of Rep- Parliamentarian of the House of Representa- the bill be immediately discharged resentatives of the United States of America in tives in consultation with the Parliamentar- ian of the Senate, shall be printed as a Sen- from committee and placed on the cal- Congress assembled, That section 5 of the Act endar. entitled ‘‘An Act to Incorporate the Amer- ate document, with suitable paper cover in the style selected by the chairman of the The PRESIDING OFFICER. Without ican Legion’’, approved September 16, 1919 (41 objection, it is so ordered. Stat. 285; 36 U.S.C. 45) is amended by striking Joint Committee on Printing. ‘‘December 22, 1961’’ and inserting ‘‘February (b) There shall be printed— f 28, 1961’’. (1)(A) 250,000 copies of the brochure for the use of the House of Representatives, distrib- UNANIMOUS-CONSENT AGREE- f uted in equal numbers to each Member; MENT—NOMINATION OF RONALD AUTHORIZATING PRINTING OF (B) 100,000 copies of the brochure for the LEE GILMAN SENATE DOCUMENTS AND USE use of the Senate, distributed in equal num- Mr. NICKLES. Madam President, as OF OFFICIAL MAIL bers to each Member; in executive session, I ask unanimous (C) 2,000 copies of the brochure for the use Mr. NICKLES. I ask unanimous con- of the Joint Committee on Printing; and consent that at 9:30 on Thursday, No- sent the Senate now proceed to the (D) 1,400 copies of the brochure for dis- vember 6, the Senate proceed to execu- consideration en bloc of the following tribution to the depository libraries; or tive session to consider the Executive resolutions and bill which were submit- (2) if the total printing and production Calendar No. 326, the nomination of ted and introduced earlier today by costs of copies in paragraph (1) exceed Ronald Lee Gilman to be circuit court Senator WARNER: Senate Resolution $180,000, such number of copies of the bro- judge for the sixth circuit. I further 143, Senate Concurrent Resolution 61, chure as does not exceed total printing and ask consent that there be 10 minutes of production costs of $180,000, with distribu- Senate Concurrent Resolution 62, Sen- debate equally divided in the usual tion to be allocated in the same proportion form, and following that debate the ate Concurrent Resolution 63, and S. as in paragraph (1). 1378. Senate proceed to a vote on the con- firmation of the nomination. The PRESIDING OFFICER. Without S. CON. RES. 63 objection, it is so ordered. I finally ask consent that imme- Resolved by the Senate (the House of Rep- diately following the vote, the motion Mr. NICKLES. Madam President, I resentatives concurring), That (a) a revised ask unanimous consent the resolutions edition of the pamphlet entitled ‘‘The Con- to reconsider be laid upon the table, be agreed to, the bill be considered stitution of the United States of America’’, the President be immediately notified read a third time and passed, the mo- prepared under the direction of the Joint of the Senate’s action, and the Senate tions to reconsider be laid upon the Committee on Printing, shall be printed as a then return to legislative session. table, and any statements relating to Senate document, with appropriate illustra- The PRESIDING OFFICER. Without tion. these items be printed in the RECORD objection, it is so ordered. (b) There shall be printed— f with all the preceding occurring en (1)(A) 440,000 copies of the pamphlet for the bloc. use of the House of Representatives, distrib- EXECUTIVE SESSION The PRESIDING OFFICER. Without uted in equal numbers to each Member; objection, it is so ordered. (B) 100,000 copies of the pamphlet for the The resolutions (S. Res. 143, S. Con. use of the Senate, distributed in equal num- EXECUTIVE CALENDAR Res. 61, S. Con. Res. 62, and S. Con. bers to each Member; Mr. NICKLES. Madam President, I Res. 63) were agreed to, as follows: (C) 2,000 copies of the pamphlet for the use ask unanimous consent that the Sen- of the Joint Committee on Printing; and S. RES. 143 (D) 1,400 copies of the pamphlet for dis- ate go into executive session and pro- Resolved, That the Committee on Rules and tribution to the depository libraries; or ceed en bloc to the following nomina- Administration is directed to prepare a re- (2) if the total printing and production tions on the Executive Calendar: Nos. vised edition of the Senate Election Law costs of copies in paragraph (1) exceed 271, 272, 279, 282, 288, 352, 372, 376 Guidebook, Senate Document 104–12, and $120,000, such number of copies of the pam- through 379, 382, 383, 440, 441, 442, and that such document shall be printed as a phlet as does not exceed total printing and all nominations on the Secretary’s Senate document. production costs of $120,000, with distribu- Sec. 2. There shall be printed 600 additional desk in the Coast Guard. tion to be allocated in the same proportion I finally ask unanimous consent the copies of the document specified in section 1 as in paragraph (1). of this resolution for the use of the Commit- nominations be confirmed, the motions tee on Rules and Administration. The bill (S. 1378) was read the third to reconsider be laid upon the table, time and passed, as follows: and any statements relating to the S. CON. RES. 61 S. 1378 nominations appear at this point in the Resolved by the Senate (the House of Rep- Be it enacted by the Senate and House of Rep- RECORD, the President be immediately resentatives concurring), That (a) a revised resentatives of the United States of America in notified of the Senate’s action, and the edition of the publication entitled ‘‘Our Congress assembled, Senate then return to legislative ses- Flag’’, revised under the direction of the SECTION 1. EXTENSION OF AUTHORIZATION OF sion. Joint Committee on Printing, shall be re- USE OF OFFICIAL MAIL IN THE LO- The PRESIDING OFFICER. Without printed as a Senate document. CATION AND RECOVERY OF MISSING objection, it is so ordered. (b) There shall be printed— CHILDREN. (1)(A) 250,000 copies of the publication for The Act entitled ‘‘An Act to amend title 3, The nominations considered and con- the use of the House of Representatives, dis- United States Code, to authorize the use of firmed en bloc are as follows: tributed in equal numbers to each Member; penalty and franked mail in efforts relating DEPARTMENT OF STATE (B) 51,500 copies of the publication for the to the location and recovery of missing chil- Nancy Jo Powell, of Iowa, a Career Mem- use of the Senate, distributed in equal num- dren’’, approved August 9, 1985 (39 U.S.C. 3220 ber of the Senior Foreign Service, Class of bers to each Member; note; Public Law 99–87), is amended— Counselor, to be Ambassador Extraordinary (C) 2,000 copies of the publication for the (1) in section 3(a) by striking ‘‘June 30, and Plenipotentiary of the United States of use of the Joint Committee on Printing; and 1997’’ and inserting ‘‘June 30, 2002’’; and America to the Republic of Uganda. (D) 1,400 copies of the publication and dis- (2) in section 5 by striking ‘‘December 31, Amelia Ellen Shippy, of Washington, a Ca- tribution to the depository libraries; or 1997’’ and inserting ‘‘December 31, 2002’’. reer Member of the Senior Foreign Service, November 5, 1997 CONGRESSIONAL RECORD — SENATE S11793 Class of Counselor, to be Ambassador Ex- ORDERS FOR THURSDAY, EXECUTIVE OFFICE OF THE PRESIDENT traordinary and Plenipotentiary of the Unit- NOVEMBER 6, 1997 REBECCA M. BLANK, OF ILLINOIS, TO BE A MEMBER OF ed States of America to the Republic of Ma- THE COUNCIL OF ECONOMIC ADVISERS, VICE ALICIA lawi. Mr. NICKLES. Madam President, I HAYDOCK MUNNELL, RESIGNED. Barbara K. Bodine, of California, a Career ask unanimous consent that when the Member of the Senior Foreign Service, Class Senate completes its business today, it f of Counselor, to be Ambassador Extraor- stand in adjournment until the hour of dinary and Plenipotentiary of the United 9:30 a.m. on Thursday, November 6. I CONFIRMATIONS States of America to the Republic of Yemen. Johnny Young, of Maryland, a Career further ask that on Thursday, imme- Executive nominations confirmed by Member of the Senior Foreign Service, Class diately following the prayer, the rou- the Senate November 5, 1997: of Minister-Counselor, to be Ambassador Ex- tine requests through the morning DEPARTMENT OF STATE traordinary and Plenipotentiary of the Unit- hour be granted and the Senate imme- NANCY JO POWELL, OF IOWA, A CAREER MEMBER OF ed States of America to the State of Bah- diately resume executive session to THE SENIOR FOREIGN SERVICE, CLASS OF COUNSELOR, rain. consider the nomination of Ronald Gil- TO BE AMBASSADOR EXTRAORDINARY AND PLENI- Robin Lynn Raphel, of Washington, a Ca- POTENTIARY OF THE UNITED STATES OF AMERICA TO man of Tennessee to be a circuit judge, THE REPUBLIC OF UGANDA. reer Member of the Senior Foreign Service, for 10 minutes, to be followed by a roll- AMELIA ELLEN SHIPPY, OF WASHINGTON, A CAREER Class of Minister-Counselor, to be Ambas- MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF call vote on the confirmation of Judge COUNSELOR, TO BE AMBASSADOR EXTRAORDINARY AND sador Extraordinary and Plenipotentiary of PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA the United States of America to the Republic Gilman. TO THE REPUBLIC OF MALAWI. of Tunisia. The PRESIDING OFFICER. Without BARBARA K. BODINE, OF CALIFORNIA, A CAREER MEM- BER OF THE SENIOR FOREIGN SERVICE, CLASS OF COUN- DEPARTMENT OF DEFENSE objection, it is so ordered. SELOR, TO BE AMBASSADOR EXTRAORDINARY AND Jacques Gansler, of Virginia, to be Under Mr. NICKLES. Following the 9:40 PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA TO THE REPUBLIC OF YEMEN. Secretary of Defense for Acquisition and a.m. vote, the Senate will begin consid- JOHNNY YOUNG, OF MARYLAND, A CAREER MEMBER OF Technology. eration of the conference report to ac- THE SENIOR FOREIGN SERVICE, CLASS OF MINISTER- COUNSELOR, TO BE AMBASSADOR EXTRAORDINARY AND EXECUTIVE OFFICE OF THE PRESIDENT company H.R. 1119, the Department of PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA Duncan T. Moore, of New York, to be an Defense Authorization Act, as under TO THE STATE OF BAHRAIN. ROBIN LYNN RAPHEL, OF WASHINGTON, A CAREER Associate Director of the Office of Science the previous order. MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF and Technology Policy. The PRESIDING OFFICER. Without MINISTER-COUNSELOR, TO BE AMBASSADOR EXTRAOR- THE JUDICIARY DINARY AND PLENIPOTENTIARY OF THE UNITED STATES objection, it is so ordered. OF AMERICA TO THE REPUBLIC OF TUNISIA. William P. Greene, Jr., of West Virginia, to f DEPARTMENT OF DEFENSE be an Associate Judge of the United States Court of Veterans Appeals for the term of 15 PROGRAM JACQUES GANSLER, OF VIRGINIA, TO BE UNDER SEC- years. RETARY OF DEFENSE FOR ACQUISITION AND TECH- Mr. NICKLES. Tomorrow, at 9:40 NOLOGY. DEPARTMENT OF LABOR a.m., the Senate will conduct a rollcall EXECUTIVE OFFICE OF THE PRESIDENT Espiridion A. Borrego, of Texas, to be As- vote on the confirmation of Judge Gil- DUNCAN T. MOORE, OF NEW YORK, TO BE AN ASSOCI- sistant Secretary of Labor for Veterans’ Em- ATE DIRECTOR OF THE OFFICE OF SCIENCE AND TECH- ployment and Training. man of Tennessee, to be followed by up NOLOGY POLICY. DEPARTMENT OF VETERANS AFFAIRS to 4 hours of consideration of the con- THE JUDICIARY ference report to accompany H.R. 1119, Richard J. Griffin, of Illinois, to be Inspec- WILLIAM P. GREENE, JR., OF WEST VIRGINIA, TO BE AN tor General, Department of Veterans Affairs. the Department of Defense Authoriza- ASSOCIATE JUDGE OF THE UNITED STATES COURT OF Joseph Thompson, of New York, to be tion Act. As under the order, a vote on VETERANS APPEALS FOR THE TERM OF FIFTEEN YEARS. Under Secretary for Benefits of the Depart- the adoption of the conference report DEPARTMENT OF LABOR ment of Veterans Affairs. will occur at the expiration or yielding ESPIRIDION A. BORREGO, OF TEXAS, TO BE ASSISTANT FEDERAL EMERGENCY MANAGEMENT AGENCY SECRETARY OF LABOR FOR VETERANS’ EMPLOYMENT back of time. Therefore, Members can AND TRAINING. Jo Ann Jay Howard, of Texas, to be Fed- anticipate that vote at approximately 2 DEPARTMENT OF VETERANS AFFAIRS eral Insurance Administrator, Federal Emer- p.m. on Thursday. The Senate may also gency Management Agency. RICHARD J. GRIFFIN, OF ILLINOIS, TO BE INSPECTOR consider and complete action on any of GENERAL, DEPARTMENT OF VETERANS AFFAIRS. DEPARTMENT OF HOUSING AND URBAN the following: Amtrak reform, the D.C. JOSEPH THOMPSON, OF NEW YORK, TO BE UNDER SEC- DEVELOPMENT RETARY FOR BENEFITS OF THE DEPARTMENT OF VET- appropriations bill, FDA reform con- ERANS AFFAIRS. Richard F. Keevey, of Virginia, to be Chief ference report, the Intelligence author- FEDERAL EMERGENCY MANAGEMENT AGENCY Financial Officer, Department of Housing ization conference report, and any ad- and Urban Development. JO ANN JAY HOWARD, OF TEXAS, TO BE FEDERAL IN- ditional legislative or executive items SURANCE ADMINISTRATOR, FEDERAL EMERGENCY MAN- U.S. ADVISORY COMMISSION ON PUBLIC that can be cleared for action. AGEMENT AGENCY. DIPLOMACY Therefore, Members can anticipate DEPARTMENT OF HOUSING AND URBAN Hank Brown, of Colorado, to be a Member DEVELOPMENT of the United States Advisory Commission rollcall votes throughout Thursday’s session of the Senate, with the first RICHARD F. KEEVEY, OF VIRGINIA, TO BE CHIEF FINAN- on Public Diplomacy for a term expiring CIAL OFFICER, DEPARTMENT OF HOUSING AND URBAN April 6, 2000. vote occurring at 9:40 a.m. DEVELOPMENT. Penne Percy Korth, of Texas, to be a Mem- f UNITED STATES ADVISORY COMMISSION ON ber of the United States Advisory Commis- PUBLIC DIPLOMACY sion on Public Diplomacy for a term expiring ADJOURNMENT UNTIL 9:30 A.M. July 1, 2000. HANK BROWN, OF COLORADO, TO BE A MEMBER OF THE TOMORROW UNITED STATES ADVISORY COMMISSION ON PUBLIC DI- DEPARTMENT OF THE TREASURY Mr. NICKLES. Madam President, if PLOMACY FOR A TERM EXPIRING APRIL 6, 2000. Nancy Killefer, of Florida, to be an Assist- PENNE PERCY KORTH, OF TEXAS, TO BE A MEMBER OF there is no further business to come be- THE UNITED STATES ADVISORY COMMISSION ON PUBLIC ant Secretary of the Treasury. fore the Senate, I now ask unanimous DIPLOMACY FOR A TERM EXPIRING JULY 1, 2000. IN THE COAST GUARD consent the Senate stand in adjourn- DEPARTMENT OF THE TREASURY Coast Guard nominations beginning Thom- ment under the previous order. NANCY KILLEFER, OF FLORIDA, TO BE AN ASSISTANT as Flora, and ending Michael R. Olson, which SECRETARY OF THE TREASURY. nominations were received by the Senate and There being no objection, the Senate, THE ABOVE NOMINATIONS WERE APPROVED SUBJECT appeared in the Congressional Record of Oc- at 6:04 p.m, adjourned until Thursday, TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY tober 7, 1997. November 6, 1997, at 9:30 a.m. CONSTITUTED COMMITTEE OF THE SENATE. Coast Guard nomination of Whitney L. f Yelle, which was received by the Senate and THE JUDICIARY appeared in the Congressional Record of Oc- NOMINATIONS JAMES S. GWIN, OF OHIO, TO BE U.S. DISTRICT JUDGE tober 29, 1997. FOR THE NORTHERN DISTRICT OF OHIO. Executive nominations received by f IN THE COAST GUARD the Senate November 5, 1997: COAST GUARD NOMINATIONS BEGINNING THOMAS LEGISLATIVE SESSION FEDERAL ELECTION COMMISSION FLORA, AND ENDING MICHAEL R. OLSON, WHICH NOMINA- TIONS WERE RECEIVED BY THE SENATE AND APPEARED The PRESIDING OFFICER. Under DARRYL R. WOLD, OF CALIFORNIA, TO BE A MEMBER IN THE CONGRESSIONAL RECORD ON OCTOBER 7, 1997. the previous order, the Senate will re- OF THE FEDERAL ELECTION COMMISSION FOR A TERM COAST GUARD NOMINATION OF WHITNEY L. YELLE, EXPIRING APRIL 30, 2001, VICE JOAN D. AIKENS, TERM EX- WHICH WAS RECEIVED BY THE SENATE AND APPEARED sume legislative session. PIRED. IN THE CONGRESSIONAL RECORD OF OCTOBER 29, 1997. Wednesday, November 5, 1997 Daily Digest

HIGHLIGHTS The House passed H.R. 2676, IRA Restructuring and Reform Act. The House passed H.R. 2358, Political Freedom In China Act. The House passed H.R. 2195, Laogai Slave Labor Products Act. Senate American Legion Act Technical Correction: Sen- Chamber Action ate passed S. 1377, to amend the Act incorporating Routine Proceedings, pages S11709–S11793 the American Legion to make a technical correction. Measures Introduced: Twelve bills and four resolu- Pages S11791±92 tions were introduced, as follows: S. 1370–1381, S. Printing Authorization: Senate agreed to S. Res. Con. Res. 61–63, and S. Res. 143. Pages S11763±64 143, to authorize the printing of a revised edition of Measures Reported: Reports were made as follows: the Senate Election Law Guidebook. Page S11792 S. 1079, to permit the leasing of mineral rights, Printing Authorization: Senate agreed to S. Con. in any case in which the Indian owners of an allot- Res. 61, authorizing printing of a revised edition of ment that is located within the boundaries of the the publication entitled ‘‘Our Flag’’. Page S11792 Fort Berthold Indian Reservation and held trust by Printing Authorization: Senate agreed to S. Con. the United States have executed leases to more than Res. 62, authorizing printing of the brochure enti- 50 percent of the mineral estate of that allotment, tled ‘‘How Our Laws Are Made’’. Page S11792 with an amendment in the nature of a substitute. (S. Printing Authorization: Senate agreed to S. Con. Rept. No. 105–139) Page S11763 Res. 63, authorizing printing of the pamphlet enti- Measures Passed: tled ‘‘The Constitution of the United States of Veterans’ Compensation: Senate passed H.R. America’’. Page S11792 2367, to amend title 38, United States Code, to pro- Use of Official Mail Extension: Senate passed S. vide a cost-of-living adjustment in the rates of dis- 1378, to extend the authorization of use of official ability compensation for veterans with service-con- mail in the location and recovery of missing chil- nected disabilities and the rates of dependency and dren. Page S11792 indemnity compensation for survivors of such veter- Reciprocal Trade Agreement/Fast Track: Senate ans, clearing the measure for the President. began consideration of S. 1269, to establish objec- Page S11790 tives for negotiating and procedures for implement- Native American Housing: Senate passed S. 714, ing certain trade agreements. Pages S11711±53 to extend and improve the Native American Veter- During consideration of this measure today, Senate ans Housing Loan Pilot Program of the Department took the following action: of Veterans Affairs, to extend certain authorities of By 68 yeas to 31 nays (Vote No. 294), Senate agreed to a motion to proceed to consideration of the the Secretary of Veterans Affairs relating to services bill. Pages S11711±53 for homeless veterans, and to extend certain other authorities of the Secretary, after agreeing to a com- Nomination—Agreement: A unanimous-consent mittee amendment in the nature of a substitute. time-agreement was reached providing for the con- Pages S11790±91 sideration of the nomination of Ronald Lee Gilman, of Tennessee, to be United States Circuit Judge for the Sixth Circuit, on Thursday, November 6, 1997, with a vote to occur thereon. Page S11792

D1214 November 5, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D1215

Nominations Confirmed: Senate confirmed the fol- Messages From the House: Pages S11762±63 lowing nominations: Measures Referred: Page S11763 By unanimous vote of 100 yeas (Vote No. 293 EX), James S. Gwin, of Ohio, to be United States Communications: Page S11763 District Judge for the Northern District of Ohio. Executive Reports of Committees: Page S11763 Pages S11715±16, S11793 Statements on Introduced Bills: Pages S11764±78 William P. Greene, Jr., of West Virginia, to be an Associate Judge of the United States Court of Additional Cosponsors: Pages S11778±79 Veterans Appeals for the term of fifteen years. Amendments Submitted: Pages S11780±82 Nancy Jo Powell, of Iowa, to be Ambassador to the Republic of Uganda. Authority for Committees: Pages S11782±83 Amelia Ellen Shippy, of Washington, to be Am- Additional Statements: Pages S11783±90 bassador to the Republic of Malawi. Record Votes: Two record votes were taken today. Nancy Killefer, of Florida, to be an Assistant Sec- (Total—294) Pages S11716, S11753 retary of the Treasury. Jo Ann Jay Howard, of Texas, to be Federal Insur- Adjournment: Senate convened at 9:30 a.m., and ance Administrator, Federal Emergency Management adjourned at 6:04 p.m., until 9:30 a.m., on Thurs- Agency. day, November 6, 1997. (For Senate’s program, see Richard F. Keevey, of Virginia, to be Chief Finan- the remarks of the Assistant Majority Leader in to- cial Officer, Department of Housing and Urban De- day’s Record on page S11793.) velopment. Barbara K. Bodine, of California, to be Ambas- sador to the Republic of Yemen. Committee Meetings Johnny Young, of Maryland, to be Ambassador to the State of Bahrain. (Committees not listed did not meet) Espiridion A. Borrego, of Texas, to be Assistant Secretary of Labor for Veterans’ Employment and FOREIGN INVOLVEMENT IN U.S. Training. SECURITIES Jacques Gansler, of Virginia, to be Under Sec- Committee on Banking, Housing, and Urban Affairs: retary of Defense for Acquisition and Technology. Subcommittee on Financial Institutions and Regu- Richard J. Griffin, of Illinois, to be Inspector latory Relief concluded hearings to examine the pres- General, Department of Veterans Affairs. ence of foreign governments and companies, particu- Robin Lynn Raphel, of Washington, to be Am- larly China, in United States securities and banking bassador to the Republic of Tunisia. sectors, and on S. 1315 and provisions of H.R. 2772, Duncan T. Moore, of New York, to be an Associ- measures to establish an Office of National Security ate Director of the Office of Science and Technology within the Securities and Exchange Commission, and Policy. provide for the monitoring of the extent of foreign Joseph Thompson, of New York, to be Under Sec- involvement in United States securities markets, fi- retary for Benefits of the Department of Veterans Af- nancial institutions, and pension funds, after receiv- fairs. ing testimony from Representative Solomon; Roger Hank Brown, of Colorado, to be a Member of the W. Robinson, Jr., RWR, Inc., former Senior Direc- United States Advisory Commission on Public Di- plomacy for a term expiring April 6, 2000. tor of International Economic Affairs, National Secu- Penne Percy Korth, of Texas, to be a Member of rity Council, and Richard D. Fisher, Heritage Foun- the United States Advisory Commission on Public dation, both of Washington, D.C.; and R. Montana Diplomacy for a term expiring July 1, 2000. Quon, Potomac Foundation, McLean, Virginia. Routine lists in the Coast Guard. Pages S11792±93 NOMINATIONS Nominations Received: Senate received the follow- ing nominations: Committee on Energy and Natural Resources: Committee Darryl R. Wold, of California, to be a Member of ordered favorably reported the nominations of Linda the Federal Election Commission for a term expiring Key Breathitt, of Kentucky, and Curt Herbert, Jr., April 30, 2001. of Mississippi, each to be a Member of the Federal Rebecca M. Blank, of Illinois, to be a Member of Energy Regulatory Commission, Department of En- the Council of Economic Advisers. Page S11793 ergy. D1216 CONGRESSIONAL RECORD — DAILY DIGEST November 5, 1997 DOT HEADQUARTERS FACILITY BUSINESS MEETING Committee on Environment and Public Works: Sub- Committee on Governmental Affairs: Committee ordered committee on Transportation and Infrastructure con- favorably reported the following business items: cluded hearings to examine the General Services Ad- S. 336, to convert certain excepted service posi- ministration’s proposal to construct or otherwise ac- tions in the United States Fire Administration to quire a facility to house the headquarters of the De- competitive service positions; partment of Transportation, after receiving testimony S. 845, to transfer to the Secretary of Agriculture from Paul Chistolini, Deputy Commissioner, Public the authority to conduct the census of agriculture Buildings Service, General Services Administration; every five years beginning in 1998; and Peter J. Basso, Acting Assistant Secretary of H.R. 2366, to transfer to the Secretary of Agri- Transportation for Budget and Programs. culture the authority to conduct the census of agri- WOMEN’S HEALTH CARE culture; H.R. 1316, to amend Federal law concerning the Committee on Finance: Subcommittee on Health Care order of precedence to be applied in the payment of concluded hearings on S. 249, to require that health life insurance benefits; plans provide coverage for a minimum hospital stay S. 758, to make certain technical corrections to for mastectomies and lymph node dissection for the the Lobbying Disclosure Act of 1995; treatment of breast cancer, coverage for reconstruc- H.R. 2564, to designate the United States Post tive surgery following mastectomies, and coverage Office located at 450 North Centre Street in Potts- for secondary consultations, after receiving testimony ville, Pennsylvania, as the ‘‘Peter J. McCloskey Post- from Senators D’Amato, Feinstein, and Snowe; Rep- al Facility’’; resentative Kelly; Gail R. Wilensky, Project HOPE, Bethesda, Maryland; Mary Armao McCarthy, Amer- H.R. 681, to designate the United States Post of- ican College of Obstetricians and Gynecologists of fice building located at 313 East Broadway in Glen- New York State, Albany; Lillie Shockney, Johns dale, California, as the ‘‘Carlos J. Moorhead Post Of- Hopkins Hospital Breast Center, Baltimore, Mary- fice Building’’; land; and Frances M. Visco, National Breast Cancer H.R. 282, to designate the United States Post Of- Coalition, Philadelphia, Pennsylvania. fice building located at 153 East 110th Street, New York, New York, as the ‘‘Oscar Garcia Rivera Post NATO ENLARGEMENT Office Building’’; Committee on Foreign Relations: Committee resumed H.R. 2129, to designate the United States Post hearings to examine certain issues with regard to the Office located at 150 North 3rd Street in Steuben- inclusion of Poland, Hungary, and the Czech Repub- ville, Ohio, as the ‘‘Douglas Applegate Post Office’’; lic to the North Atlantic Treaty Organization S. 222, to establish an advisory commission to (NATO), receiving testimony from Jan Nowak, provide advice and recommendations on the creation Central and Eastern European Coalition, Annandale, of an integrated, coordinated Federal policy designed Virginia; Mati Koiva, Joint Baltic American Na- to prepare for and respond to serious drought emer- tional Committee, Inc./Estonian American National gencies, with an amendment in the nature of a sub- Council, Rockville, Maryland; Adrian Karatnycky, stitute; Freedom House, and David A. Harris, American H.R. 497, to repeal the Federal charter of Group Jewish Committee, both of New York, New York; Hospitalization and Medical Services, Inc., with an Alvin Z. Rubinstein, University of Pennsylvania, amendment in the nature of a substitute; H.R. Philadelphia; Edward J. Moskal, Polish American 1953, to clarify State authority to tax compensation Congress, Chicago, Illinois; and Frank Koszorus, Jr., paid to certain employees on Federal reservations Hungarian American Coalition, Robert W. Doubek, which straddle State borders; American Friends of the Czech Republic, Daniel S. 294, to establish Federal penalties for the kill- Plesch, British American Security Information Coun- ing or attempted killing of a law enforcement officer cil, David C. Acheson, Atlantic Council of the Unit- of the District of Columbia; and ed States, Adm. Jack Shanahan, USN (Ret.), Center The nominations of Ernesta Ballard, of Alaska, to for Defense Information, Charles S. Ciccolella, Amer- be a Governor of the United States Postal Service, ican Legion, John T. Joyce, International Union of Dale Cabaniss, of Virginia, to be a Member of the Bricklayers and Allied Craftworkers, Col. Herbert N. Federal Labor Relations Authority, Susanne T. Mar- Harmon, USMCR, Reserve Officers Association of shall, of Virginia, to be a Member of the Merit Sys- the United States, and Paula Stern, Stern Group, all tems Protection Board, and Anita M. Josey and John of Washington, D.C. M. Campbell, each to be an Associate Judge of the Hearings were recessed subject to call. Superior Court of the District of Columbia. November 5, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D1217 NOMINATION and Gerald Schwebel, Laredo, Texas, on behalf of the Committee on the Judiciary: Committee concluded Border Trade Alliance and the Laredo Development hearings on the nomination of Seth Waxman, of the Foundation. District of Columbia, to be Solicitor General of the NATIONAL INFRASTRUCTURE United States, after the nominee, who was intro- PROTECTION duced by Senator Lieberman and Delegate Eleanor Committee on the Judiciary: Subcommittee on Tech- Holmes Norton, testified and answered questions in nology, Terrorism, and Government Information his own behalf. concluded hearings to review the findings and rec- IMMIGRATION BORDER IMPROVEMENT ommendations of the President’s Commission on Critical Infrastructure Protection report, and to ex- Committee on the Judiciary: Subcommittee on Immi- amine policy implications of new risks to the infor- gration held hearings to examine the effects of Sec- mation-based national infrastructure, after receiving tion 110 of the Illegal Immigration Reform and Im- testimony from John J. Hamre, Deputy Secretary of migrant Responsibility Act which requires the Im- Defense; and Robert T. Marsh, former Chairman, migration and Naturalization Service to develop an President’s Commission on Critical Infrastructure automated system for documenting the arrival and Protection. departure of every alien entering or leaving the United States, and S. 1360, to amend the Illegal Im- JUVENILE CRIME PREVENTION migration Reform and Immigrant Responsibility Act Committee on the Judiciary: Subcommittee on Youth of 1996 to clarify and improve the requirements for Violence concluded hearings to examine the effec- the development of an automated entry-exit control tiveness of Federal crime prevention programs that system, and to enhance land border control and en- serve at-risk and delinquent youth, after receiving forcement, receiving testimony from Senators Col- testimony from Cornelia M. Blanchette, Associate lins, D’Amato, Grams, Murray, and Dorgan; Rep- Director, Education and Employment Issues, Health, resentatives LaFalce and Quinn; Michael J. Hrinyak, Education, and Human Services Division, General Deputy Assistant Commissioner for Inspections, Im- Accounting Office; Kent Markus, Counselor to the migration and Naturalization Service, Department of Attorney General for Youth Violence, Department of Justice; Eric Kunsman, Director, Office of Canadian Justice; James Wootton, Safe Streets Coalition, Affairs, Bureau of European and Canadian Affairs, Washington, D.C.; Lawrence W. Sherman, Univer- Department of State; Hallock Northcott, Travel In- sity of Maryland, College Park; and Paul F. Evans, dustry Association of America, and Gregori Lebedev, Boston Police Department, Boston, Massachusetts. on behalf of the American Trucking Associations, Inc. and the Canadian Trucking Alliance, both of BUSINESS MEETING Washington, D.C.; Dan Stamper, Detroit Inter- Committee on Rules and Administration: Committee met national Bridge Company, Detroit, Michigan; Wil- to consider pending administrative business. liam J. Stenger, Jay Peak Ski Resort, Jay, Vermont; Committee recessed subject to call. h House of Representatives quirement that public committee proceedings be Chamber Action open to all media (H. Rept. 105–382); Bills Introduced: 16 public bills, H.R. 2814, 2815, H. Res. 305, waiving a requirement of clause 4(b) and 2817–2830; 2 private bills, H.R. 2816 and of rule XI with respect to consideration of certain 2831; and 3 resolutions, H. Res. 304 and 307–08, resolutions reported from the Committee on Rules were introduced. Pages H10104±05 (H. Rept. 105–383); and Reports Filed: Reports were filed as follows: H. Res. 306, waiving a requirement of clause 4(b) H.R. 2440, to make technical amendments to sec- of rule XI with respect to consideration of certain tion 10 of title 9, United States Code (H. Rept. resolutions reported from the Committee on Rules 105–381); (H. Rept. 105–384). Page H10104 H. Res. 301, amending the Rules of the House of Representatives to repeal the exception to the re- D1218 CONGRESSIONAL RECORD — DAILY DIGEST November 5, 1997 Speaker Pro Tempore: Read a letter from the 2386, H.R. 2570, H.R. 2605, and H.R. 2647, relat- Speaker wherein he designated Representative ing to the policy of the U.S. with respect to China. Sununu to act as Speaker pro tempore for today. Agreed to the Solomon technical amendment to the Page H9995 rule. Pages H10054±63 Journal: By a yea and nay vote of 353 yeas to 48 Political Freedom In China Act: The House passed nays, Roll No. 575, agreed to the Speaker’s approval H.R. 2358, to provide for improved monitoring of of the Journal of Tuesday, November 4, 1997. human rights violations in the People’s Republic of Pages H9995, H9999±H10000 China by a recorded vote of 416 ayes to 5 noes, Roll Thirteenth Congressional District, New York: No. 580. Pages H10063±80 Read a message from the Clerk wherein she trans- Agreed to the Gilman amendment that extends mitted a letter from the Deputy Executive Director, the Congressional Review period for licensing of nu- State Board of Elections, State of New York, indicat- clear exports to China from 30 to 120 days and pro- ing that Vito Fossella was elected Representative in vides for expedited procedures for consideration of a Congress for the Thirteenth Congressional District, joint resolution of disapproval for any licensing State of New York. Subsequently, the House agreed agreement (agreed to by yea and nay vote of 394 by unanimous consent to administer the oath of of- yeas to 29 nays, Roll No. 579). Pages H10072±79 fice to Representative-elect Fossella. Page H10000 Pursuant to the rule, the amendments rec- Member Sworn: Representative-elect Vito Fossella ommended by the Committee on International Rela- presented himself in the well of the House and was tions now printed in the bill and the Abercrombie, administered the oath of office by the Speaker. Porter, Mrs. Smith of Washington, and Gilman amendments printed in part 1–A of H. Rept. Page H10000 105–379, the report accompanying the rule, were IRS Restructuring and Reform Act of 1997: By considered as adopted. Page H10063 a yea and nay vote of 426 yeas to 4 nays, Roll No. 577, the House passed H.R. 2676, to amend the In- Laogai Slave Labor Products Act: The House ternal Revenue Code of 1986 to restructure and re- passed H.R. 2195, to provide for certain measures to increase monitoring of products of the People’s Re- form the Internal Revenue Service. Pages H10005±46 The Clerk was authorized to correct section num- public of China that are made with forced labor by bers, punctuation, and cross references and to make a recorded vote of 419 ayes to 2 noes with 1 voting such other technical and conforming changes as may ‘‘present’’, Roll No. 582. Agreed to amend the title. be necessary to reflect the actions of the House in Pages H10080±94 A point of order was sustained against the Taylor amending H.R. 2676. Page H10046 Earlier, the House agreed to H. Res. 303, the rule of Mississippi motion to recommit the bill to the that provided for consideration of the bill by a voice Committee on Ways and Means with instructions to vote. Pursuant to the rule, the amendment in the report it back forthwith with an amendment dealing nature of a substitute now printed in the bill, modi- with the tariff schedules between the United States fied by the amendments printed in H. Rept. and China. By a yea and nay vote of 217 yeas to 202 105–380, accompanying the rule, were considered as nays, Roll No. 581, agreed to table the motion to appeal the ruling of the Chair. Pages H10091±93 adopted. Pages H10001±05 Pursuant to the rule, the amendment in the na- Representative Capps of California Introduced ture of a substitute recommended by the Committee Bill: Agreed that Representative Gilman be consid- on Ways and Means was considered as adopted. ered as the first sponsor of H.R. 2009, to amend the Page H10081 Social Security Act to waive the 24 month waiting period for Medicare coverage of individuals disabled Question of Privilege of the House: The Speaker with amyotrophic lateral sclerosis (ALS), to provide ruled that H. Res. 307, relating to a question of the Medicare coverage of drugs used for treatment of privileges of the House, did constitute a question of ALS, and to amend the Public Health Service Act to privilege of the House and was in order. Subse- increase Federal funding for research on ALS, a bill quently, agreed to table the resolution by a recorded originally introduced by the late Representative vote of 217 ayes to 194 noes with 1 voting Pages H10094±H10102 Capps of California. Page H10063 ‘‘present’’, Roll No. 583. United States Policy Re China: By a yea and nay Motion to Adjourn: Agreed to the Armey motion vote of 237 yeas to 184 nays, Roll No. 578, the to adjourn by a recorded vote of 216 ayes to 192 House agreed to H. Res. 302, the rule providing for noes, Roll No. 584. Pages H10102±03 consideration of nine measures, H. Res. 188, H.R. Senate Messages: Messages received from the Senate 967, H.R. 2195, H.R. 2232, H.R. 2358, H.R. today appears on page H9995. November 5, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D1219 Referrals: S. 940, to provide for a study of the es- OVERSIGHT—TEAMSTER’S ELECTION tablishment of Midway Atoll as a national memorial Committee on Education and the Workforce: Approved a to the Battle of Midway was referred to the Com- motion to approve a Contract Agreement to provide mittee on Resources and S. 1324, to de-authorize a services to the Committee in relation to the over- portion of the project for navigation, Biloxi Harbor, sight investigation of the International Brotherhood Mississippi was referred to the Committee on Trans- of Teamsters election. portation and Infrastructure. Page H10103 Quorum Calls—Votes: One quorum call, Roll No. CSRS-FERS OPEN SEASON—WHAT ARE THE 576, five yea-and-nay votes and four recorded votes MERITS? developed during the proceedings of the House Committee on Government Reform and Oversight: Sub- today and appear on pages H9999–H10000, committee on Civil Service held a hearing on H10040, H10046, H10062–63, H10079, ‘‘CSRS-FERS OPEN SEASON-What Are the Mer- H10079–80, H10092–93, H10093, H10101–02, its?’’. Testimony was heard from William E. Flynn, and H10102–03. There were no quorum calls. Associate Director, Retirement and Insurance Serv- Adjournment: Met at 10:00 a.m. and adjourned at ice, OPM; Michael Brostek, Associate Director, Fed- 11:26 p.m. eral Workforce and Management Issues, GAO; and Paul Van de Water, Assistant Director, Budget Committee Meetings Analysis Division, CBO. OVERSIGHT—FEDERAL ADVISORY FOREST RECOVERY AND PROTECTION ACT COMMITTEE ACT Committee on Agriculture: Subcommittee on Forestry, Committee on Government Reform and Oversight: Sub- Resource Conservation, and Research approved for committee on Government Management, Informa- full Committee action amended H.R. 2515, Forest tion, and Technology held an oversight hearing on Recovery and Protection Act of 1997. the Federal Advisory Committee Act. Testimony was FEDERAL CROP INSURANCE PROGRAM heard from L. Nye Stevens, Director, Federal Man- Committee on Agriculture: Subcommittee on Risk Man- agement and Workforce Issues, General Government agement and Specialty Crops held a hearing to re- Division, GAO; G. Martin Wagner, Associate Ad- view the Federal Crop Insurance Program. Testimony ministrator, Governmentwide Policy, GSA; Bruce was heard from the following officials of the USDA: Alberts, President, National Academy of Sciences; Dallas Smith, Deputy Under Secretary, Farm and and public witnesses. Foreign Agricultural Services; and Ken Ackerman, SOLDIERS WITHOUT BORDERS—CRISIS IN Administrator, Risk Management Agency; and pub- CENTRAL AFRICA lic witnesses. Committee on International Relations: Held a hearing on HOMELESS HOUSING PROGRAMS ‘‘Soldiers Without Borders: Crisis in Central Africa’’. CONSOLIDATION AND FLEXIBILITY ACT Testimony was heard from the following officials of Committee on Banking and Financial Services: Ordered the Department of State: Bill Richardson, Ambas- reported amended H.R. 217, Homeless Housing sador to the United Nations; and Howard Wolpe, Programs Consolidation and Flexibility Act. Special Envoy, Bureau of African Affairs; and public witnesses. INTERNATIONAL GLOBAL CLIMATE CHANGE NEGOTIATIONS STATUS ANTITRUST ENFORCEMENT AGENCIES Committee on Commerce: Subcommittee on Energy and Committee on the Judiciary: Held an oversight hearing Power held a hearing on the Status of International on The Antitrust Enforcement Agencies: The Anti- Global Climate Change Negotiations focusing on the trust Division of the Department of Justice and the upcoming global climate change agreement negotia- Bureau of Competition of the Federal Trade Com- tions in Kyoto, Japan. Testimony was heard from mission. Testimony was heard from Joel Klein, As- Timothy E. Wirth, Under Secretary, Global Affairs, sistant Attorney General, Antitrust Division, Depart- Department of State. ment of Justice; Robert Pitofsky, Chairman, FTC; and public witnesses. MOLTEN METAL TECHNOLOGY FUNDING Committee on Commerce: Subcommittee on Oversight INTERNET DOMAIN NAME TRADEMARK and Investigations held a hearing on the Department PROTECTION of Energy’s Funding of Molten Metal Technology. Committee on the Judiciary: Subcommittee on Courts Testimony was heard from public witnesses. and Intellectual Property held an oversight hearing D1220 CONGRESSIONAL RECORD — DAILY DIGEST November 5, 1997 on the Internet Domain Name Trademark Protec- of a bill or joint resolution making appropriations tion. Testimony was heard from Bruce Lehman, As- for the fiscal year ending September 30, 1998, any sistant Secretary and Commissioner of Patent and amendment thereto, any conference report thereon, Trademarks, Patent and Trademark Office, Depart- or any amendment reported in disagreement from a ment of Commerce; and public witnesses. conference thereon. The waiver also applies to a spe- HEALTH PROFESSIONAL SHORTAGE AREA cial rule reported before November 10, 1997 provid- NURSING RELIEF ACT ing for consideration of a bill or joint resolution making continuing appropriations for the fiscal year Committee on the Judiciary: Subcommittee on Immi- ending September 30, 1998, any amendment there- gration and Claims held a hearing H.R. 2759, to, any conference report thereon, or any amendment Health Professional Shortage Area Nursing Relief reported in disagreement from a conference thereon. Act of 1997. Testimony was heard from Representa- The rule provides that the Speaker may entertain tive Rush; Neil Sampson, Acting Associate Adminis- motions to suspend the rules at any time before No- trator, Health Professions, Health Resources and vember 10, 1997 provided that the object of the Services Administration, Department of Health and motion is announced from the floor at least one hour Human Services; and public witnesses. before the motion is offered and that the Speaker BALLISTIC MISSILE THREAT POSED BY shall consult with the Minority Leader in scheduling IRAN legislation under this authority to suspend the rules. Committee on National Security: Subcommittee on Mili- tary Research and Development held a hearing on EXPEDITED PROCEDURES—REMAINDER OF the ballistic missile threat posed by Iran. Testimony FIRST SESSION OF 105TH CONGRESS was heard from Lt. Gen. Lester Lyles, USAF, Direc- Committee on Rules: Additionally, granted, by a vote tor, Ballistic Missile Defense Organization, Depart- of 8 to 3, a rule waiving clause 4(b) of rule XI (re- ment of Defense. quiring a two-thirds vote to consider a rule on the MISCELLANEOUS MEASURES same day it is reported from the Rules Committee) against certain resolutions reported from the Rules Committee on Resources: Ordered reported the following Committee. The rule applies the waiver to a special bills: H.R. 755, amended, to amend the Internal rule reported before November 10, 1997 providing Revenue Code of 1986 to allow individuals to des- for consideration of a bill or joint resolution making ignate and portion of their income tax overpayments, appropriations for the fiscal year ending September and to make other contributions, for the benefit of 30, 1998, any amendment thereto, any conference units of the National Park System; H.R. 1309, to report thereon, or any amendment reported in dis- provide for an exchange of lands with the city of agreement from a conference thereon. The waiver Greeley, Colorado, and The Water Supply and Stor- also applies to a special rule reported before Novem- age Company to eliminate private inholdings in wil- ber 10, 1997 providing for consideration of a bill or derness areas; and H.R. 1567, amended, Eastern joint resolution making continuing appropriations Wilderness Act. for the fiscal year ending September 30, 1998, any AMENDING HOUSE RULES—REPEAL amendment thereto, any conference report thereon, EXCEPTION TO REQUIREMENT THAT or any amendment reported in disagreement from a COMMITTEE PROCEEDINGS BE OPENED TO conference thereon. The rule provides that the Speak- ALL MEDIA er may entertain motions to suspend the rules at any Committee on Rules: Ordered reported, by a roll call time before November 10, 1997 provided that the vote of 7 to 2, H.Res. 301, Amending the Rules of object of the motion is announced from the floor at the House of Representatives to repeal the exception least one hour before the motion is offered and that to the requirement that public committee proceed- the Speaker shall consult with the Minority Leader ings be open to all media. in scheduling legislation under this authority to sus- pend the rules. Finally, the rule provides that during EXPEDITED PROCEDURES the remainder of the First Session of the 105th Con- Committee on Rules: Granted, by a voice vote, a rule gress, the Speaker may not recognize a member other waiving clause 4(b) of rule XI (requiring a two- than the Majority Leader or the Minority Leader to thirds vote to consider a rule on the same day it is offer from the floor, or to announce an intention to reported from the Rules Committee) against certain offer, a resolution as a question of the privileges of resolutions reported from the Rules Committee. The the House. Also, the rule provides that the Speaker rule applies the waiver to a special rule reported be- may postpone consideration of any noticed resolution fore November 10, 1997 providing for consideration as a question of the privileges of the House prior to November 5, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D1221 the adoption of this resolution during the remainder transportation issues, focusing on the current rail grain of the First Session of the 105th Congress. situation, 10 a.m., 1300 Longworth. Committee on Appropriations, Subcommittee on Treasury, INTERNATIONAL SPACE STATION STATUS Postal Service, hearing on GAO investigation of White AND COST OVERRUNS House, 10 a.m., 2359 Rayburn. Committee on Science: Subcommittee on Space and Aer- Committee on Government Reform and Oversight, hearing on onautics held a hearing on International Space Sta- the ‘‘White House Compliance with Committee Subpoe- tion Status and Cost Overruns. Testimony was heard nas,’’ 10 a.m., 2154 Rayburn. from Wilbur Trafton, Associate Administrator, Of- Committee on House Oversight, to continue hearings on fice of Space Flight, NASA; Allen Li, Associate Di- Campaign Finance Reform, 10 a.m., 1310 Longworth. rector, GAO; and a public witnesses. Committee on International Relations, hearing on the cur- rent status of negotiations between the Tibetan Govern- NONPROLIFERATION ment in Exile and the People’s Republic of China, 10 Permanent Select Committee on Intelligence: Met in execu- a.m., 2172 Rayburn. tive session to hold a hearing on Nonproliferation. Subcommittee on Asia and the Pacific, hearing on the Testimony was heard from departmental witnesses. Fifth Summit of the Asia Pacific Economic Cooperation f Forum, 1:30 p.m., 2172 Rayburn. Subcommittee on International Economic Policy and COMMITTEE MEETINGS FOR THURSDAY, Trade, hearing on Fast Track: The Debate Continues, 2 NOVEMBER 6, 1997 p.m., 2200 Rayburn. (Committee meetings are open unless otherwise indicated) Committee on the Judiciary, to markup H.R. 1909, Civil Rights Act of 1997, 9:30 a.m., 2141 Rayburn. Senate Committee on National Security, Subcommittee on Mili- Committee on the Budget, to hold hearings to examine tary Procurement, hearing on Department of Defense Federal pre-kindergarten through grade twelve education equipment modernization, 9:30 a.m., 2118 Rayburn. programs, 9:30 a.m., SD–608. Committee on Resources, Subcommittee on Fisheries Con- Committee on Environment and Public Works, business servation, Wildlife and Oceans, oversight hearing on the meeting, to mark up H.R. 1787, to assist in the con- review of NOAA’s plan for The Management of U.S.S. servation of Asian elephants by supporting and providing Monitor National Marine Sanctuary, 11 a.m., 1334 Long- financial resources for the conservation programs of na- worth. tions within the range of Asian elephants and projects of Subcommittee on National Parks and Public Lands, to persons with demonstrated expertise in the conservation markup the following bills: H.R. 588, National Discov- of Asian elephants, and to consider other pending cal- ery Trails Act of 1997; H.R. 2411, to provide for a land endar business, 9:30 a.m., SD–406. exchange involving the Cape Cod National Seashore and Committee on Foreign Relations, to hold hearings to exam- to extend the authority for the Cape Cod National Sea- ine commercial activities of China’s People’s Liberation shore Advisory Commission; and H.R. 2438, to encour- Army (PLA), 10 a.m., SD–419. age the establishment of appropriate trails on abandoned Subcommittee on International Operations, to hold railroad rights-of-way, while ensuring the protection of hearings to examine proposals to reform the United Na- certain reversionary property rights, 10 a.m., 1324 Long- tions, 3 p.m., SD–419. worth. Committee on Governmental Affairs, Subcommittee on Committee on Rules, hearing on H.R. 2621, Reciprocal Oversight of Government Management, Restructuring Trade Agreement Act of 1997, 4 p.m., H–313 Capitol. and the District of Columbia, to hold hearings to exam- Committee on Science, Subcommittee on Energy and Envi- ine the social impact of music violence, 12 Noon, ronment, to continue hearings on the Countdown to SD–342. Committee on the Judiciary, business meeting, to consider Kyoto Part III: The Administration’s Global Climate the nomination of Bill Lann Lee, of California, to be As- Change Proposal, 10 a.m., 2318 Rayburn. sistant Attorney General for the Civil Rights Division, Subcommittee on Technology, hearing on the Role of Department of Justice, 10 a.m., SD–226. Computer Security in Protecting the U.S. Infrastructure, Full Committee, to hold hearings on the nominations 2 p.m., 2318 Rayburn. of Robert S. Warshaw, of New York, to be Associate Di- Committee on Transportation and Infrastructure, Sub- rector, and Thomas J. Umberg, of California, to be Dep- committee on Aviation, hearing on H.R. 2790, to pro- uty Director for Supply Reduction, both of the Office of hibit the Administrator of the Federal Aviation Adminis- National Drug Control Policy, 2 p.m., SD–226. tration from closing flight service stations, 3 p.m., 2167 Select Committee on Intelligence, to hold closed hearings on Rayburn. intelligence matters, 9:30 a.m., SH–219. Subcommittee on Surface Transportation, hearing on the Reauthorization of the Hazardous Materials Transpor- House tation Program, 10 a.m., 2167 Rayburn. Committee on Agriculture, Subcommittee on General Farm Commodities, hearing on review of agricultural D1222 CONGRESSIONAL RECORD — DAILY DIGEST November 5, 1997

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Thursday, November 6 10 a.m., Thursday, November 6

Senate Chamber House Chamber Program for Thursday: Senate will consider the nomi- Program for Thursday: Consideration of rule waiving nation of Ronald Lee Gilman, of Tennessee, to be U.S. two-thirds vote for same day consideration; Circuit Judge for the Sixth Circuit, with a vote to occur Consideration of H. Res. 188, Urging the Executive thereon, following which Senate will resume consideration Branch to Fight Missile Proliferation (Modified Closed of the conference report on H.R. 1119, National Defense Rule, One Hour General Debate); Authorizations, with a vote to occur thereon. Consideration of H.R. 967, Free the Clergy Act (Closed Rule, One Hour General Debate); Consideration of H.R. 2570, Forced Abortion Con- demnation Act (Modified Closed Rule, One Hour General Debate); Consideration of H.R. 2386, United States-Taiwan Anti-Ballistic Missile Defense Cooperation Act (Modified Closed Rule, One Hour General Debate); Consideration of H.R. 2605, Communist China Sub- sidy Reduction Act (Modified Closed Rule, One Hour General Debate); Consideration of H.R. 2647, Denial of Normal Com- mercial Status to the Chinese People’s Liberation Army (Modified Closed Rule, One Hour General Debate); Consideration of H.R. 2232, Radio Free Asia Act of 1997 (Closed Rule, One Hour General Debate); Consideration of H.R. 2616, Charter Schools Amend- ments Act (Open Rule, One Hour General Debate); and Consideration of H.R. 2621, Reciprocal Trade Agree- ment Authorities Act (subject to a rule).

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