July 24, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E1421 (e.g., serious medical emergency for a family action. This regulatory authority is provided NATIONAL WEATHER SERVICE— member). In addition, as a threshold matter, to enable Treasury to address issues raised OVER 200 YEARS OF FORECAST- the transfer of structured settlement pay- regarding the treatment of future periodic ING, WARNING AND PROTECTING ment rights must be permissible under appli- payments received by the structured settle- THE AMERICAN PEOPLE cable law, including State law. The Act is ment recipient where only a portion of the not intended by way of the hardship excep- payments have been factored away, the tion to the excise tax or otherwise to over- treatment of the lump sum received in a fac- HON. TIM ROEMER ride any Federal or State law prohibition or toring transaction qualifying for the hard- OF INDIANA restriction on the transfer of the payment ship exception, and the treatment of the IN THE HOUSE OF REPRESENTATIVES rights or to authorize factoring of payment lump sum received in the non-hardship situa- rights that are not transferable under Fed- tion. It is intended that where the require- Thursday, July 23, 1998 eral or State law. For example, the States in ments of section 130 are satisfied at the time Mr. ROEMER. Mr. Speaker, I rise to bring to general prohibit the factoring of workers’ the structured settlement is entered into, my colleagues' attention the outstanding work compensation benefits. In addition, the State the existence of the hardship exception to laws often prohibit or directly restrict trans- the excise tax under the Act shall not be of the National Weather Service. Especially fers of recoveries in various types of personal construed as giving rise to any concern over during this red-hot summer, we should ac- injury cases, such as wrongful death and constructive receipt of income of the injured knowledge the tremendous work of the Na- medical malpractice. victim at the time of the structured settle- tional Weather Service to observe, predict, The relevant court for purposes of the ment. forecast and warn the American people of hardship exception would be the original 4. Tax Information Reporting Obligations With weather events. court which had jurisdiction over the under- Respect to a Structured Settlement Factoring The National Weather Service, as part of lying action or proceeding that was resolved Transaction by means of the structured settlement. In the National Oceanic and Atmospheric Admin- the event that no action had been brought The Act would clarify the tax reporting ob- istration [NOAA] of the Department of Com- prior to the settlement, the relevant court ligations of the person making the struc- merce, utilizes a wide variety of tools, from would be that which would have had jurisdic- tured settlement payments in the event that low-tech to state of the art technology to accu- tion over the claim that is the subject of the a structured settlement factoring trans- rately predict and forecast what will happen in structured settlement or which would have action occurs. The Act adopts a new section our skies today, tomorrow, and beyond. jurisdiction by reason of the residence of the of the Code that is intended to govern the It was suggested earlier today that the Na- structured settlement recipient. In those payor’s tax reporting obligations in the tional Weather Service doesn't have sufficient limited instances in which an administrative event of a factoring transaction. records of past weather conditions to be able authority adjudicates, resolves, or otherwise In the case of a court-approved transfer of has primary jurisdiction over the claim (e.g., to put this summer's heat wave in proper his- structured settlement payments of which the torical perspective. I would like to remind my the Vaccine Injury Compensation Trust person making the payments has actual no- Fund), the hardship matter would be the tice and knowledge, the fact of the transfer colleagues that the NOAA has the world's province of that applicable administrative and the identity of the acquirer clearly will largest active archive of weather data. Not authority. be known. Accordingly, it is appropriate for only can they tell you what the weather was 3. Need to Protect Tax Treatment of Original the person making the structured settlement in the 1950's, they can tell you what the tem- Structured Settlement payments to make such return and to fur- perature and conditions were during the early In the limited instances of extraordinary nish such tax information statement to the days of the republic. and unanticipated hardship determined by new recipient of the payments as would be How do we now that? The NOAA's National court order to warrant relief under the hard- applicable under the annuity information re- Climatic Data Center has Benjamin Franklin's porting procedures of Code section 6041 (e.g., ship exception, adverse tax consequences handwritten observations of the heat and hu- should not be visited upon the other parties Form 1099–R), because the payor will have to the original structured settlement. in ad- the information necessary to make such re- midity of a Philadelphia summer over 200 dition, despite the anti-assignment provi- turn and to furnish such statement. years ago. sions included in the structured settlement Despite the anti-assignment restrictions Not only does the NOAA have an incredible agreements and the applicability of a strin- applicable to structured settlements and the store of historical data, they are receiving 55 gent excise tax on the factoring company, applicability of a stringent excise tax, there gigabytes of new weather information each there may be a limited number of non-hard- may be a limited number of non-hardship dayÐthe equivalent of 18 million pages a day. ship factoring transactions that still go for- factoring transactions that still go forward. Armed with this wealth of historical data, ward. If the structured settlement tax rules In these instances, if the person making the and constantly added to and refined with the under I.R.C. §§ 72, 130 and 461(h) had been sat- structured settlement payments has actual incorporation of new satellite and computer in- isfied at the time of the structured settle- notice and knowledge that a structured set- formation, the National Weather Service cre- ment, the original tax treatment of the tlement factoring transaction has taken other parties to the settlement—i.e., the set- place, the payor would be obligated to make ates computer models. These models reflect tling defendant (and its liability insurer) and such return and to furnish such written the heritage of past weather systems, to accu- the Code section 130 assignee—should not be statement to the payment recipient at such rately forecast tomorrow's weather. So when jeopardized by a third party transaction that time, and in such manner and form, as the the National Weather Service says its going to occurs years later and likely unbeknownst to Secretary of the Treasury shall by regula- be hot tomorrow in South Bend, or Dallas or these other parties to the original settle- tions provide. In these instances the payor St. Louis, you can count on it. ment. may have incomplete information regarding Accordingly, the Act would clarify that if I commend the NOAA and the NWS on their the factoring transaction, and hence a tai- outstanding work on behalf of the American the structured settlement tax rules under lored reporting procedure under Treasury I.R.C. §§ 72, 130, and 461(h) had been satisfied regulations is necessary. people. f at the time of the structured settlement, the The person making the structured settle- section 130 exclusion of the assignee, and sec- ment payments would not be subject to any tion 461(h) deduction of the settling defend- AMERICA FACES THREAT FROM A tax reporting obligation if that person BALLISTIC MISSILE ATTACK ant, and the Code section 72 status of the an- lacked such actual notice and knowledge of nuity being used to fund the periodic pay- the factoring transaction. ments would remain undisturbed. That is, the assignee’s exclusion of income Under the Act, the term ‘‘acquirer of the HON. NEWT GINGRICH under Code section 130 arising from satisfac- structured settlement payment rights’’ OF GEORGIA tion of all of the section 130 qualified assign- would be broadly defined to include an indi- IN THE HOUSE OF REPRESENTATIVES vidual, trust, estate, partnership, company, ment rules at the time the structured settle- Thursday, July 23, 1998 ment was entered into years earlier would or corporation. not be challenged. Similarly, the settling de- The provision of section 3405 regarding Mr. GINGRICH. Mr. Speaker, as former fendant’s deduction under Code section 461(h) withholding would not apply to the person Secretary of Defense Donald Rumsfeld point- of the amount paid to the assignee to assume making the structured settlement payments ed out earlier this week, America faces a very the liability would not be challenged. Fi- in the event that a structured settlement real and serious threat from a ballistic missile nally, the status under Code section 72 of the factoring transaction occurs. attack. The bipartisan Rumsfeld commission annuity being used to fund the periodic pay- 5. Effective Date unanimously concluded that the threat is much ments would remain undisturbed. The Act provides the Secretary of the The provisions of the Act would be effec- greater and the warning time available to de- Treasury with regulatory authority to clar- tive with respect to structured settlement fend against that threat is much shorter than ify the treatment of a structured settlement factoring transactions occurring after the the Clinton administration has admitted. Fi- recipient who engages in a factoring trans- date of enactment of the Act. nally, the commission expressed concern that E1422 CONGRESSIONAL RECORD — Extensions of Remarks July 24, 1998 the ability of our intelligence community to as- to blackmail, with potentially profound dip- tack. The only question is: Will its defenses sess these threats is severely deteriorating. I lomatic and strategic implications. He lays be put into place before they are needed, or believe that it is now more important than ever out three frighteningly plausible scenarios in after? The answer depends on leadership. which the use of North Korean, Iraqi or Chi- With the warning given by the Rumsfeld re- to renew our commitment to working to deploy nese missiles are threatened to compel port and the feasible, affordable defense of- a national missile defense system. I want to American accommodation. fered by the AEGIS option, there is no ex- bring the following enlightened editorials by Moreover, Mr. Safire makes explicit a con- cuse for not providing such leadership on a William Safire, Frank Gaffney, Jr., and Thom- clusion the Rumsfeld Commission could only bipartisan basis. Failing that, the Repub- as Moore to the attention of my colleagues imply, given that its mandate was limited to licans must not shrink from doing so as a which echo the serious concerns expressed addressing the missile threat, not what ‘‘political issue.’’ by Mr. Rumsfeld and his colleagues on the should be done in response to it: The United States must promptly begin deploying de- Commission. [From the New York Times, July 20, 1998] fenses against ballistic missile attack. Mr. TEAM B VS. C.I.A.—RUMSFELD REPORT: [From the Washington Times; July 21, 1998] Safire endorses an approach that will IGNORE AT PERIL produce far more effective anti-missile pro- ALARM BELL ON VULNERABILITY TO MISSILES (By William Safire) tection, far faster and far more inexpensively THE UNITED STATES MUST PROMPTLY BEGIN DE- than any other option—by adapting the WASHINGTON.—Imagine you are the next PLOYING DEFENSES AGAINST BALLISTIC MIS- U.S. President and this crisis arises: SILE ATTACK Navy’s AEGIS fleet air defense system to give it robust missile-killing capabilities. The starving army of North Korea (By Frank Gaffney, Jr.) The AEGIS option has been receiving in- launches an attack on South Korea, imperil- The release last week of a long-awaited creasing support in recent weeks. A classi- ing our 30,000 troops. You threaten massive ‘‘second opinion’’ on the missile threat to fied study prepared by the Pentagon’s Ballis- air assault; Pyongyang counterthreatens to the United States more than lived up to high tic Missile Defense Organization that has put a nuclear missile into Hawaii. You say expectations. just been released to Congress reportedly that would cause you to obliterate North The blue-ribbon, bipartisan panel—char- confirms the conclusions of an analysis pre- Korea; its undeterred leaders dare you to tered by Congress and ably led by former De- pared by another blue-ribbon commission make the trade. Decide. fense Secretary Donald Rumsfeld—unani- sponsored a few years ago by the Heritage Or this crisis: Saddam Hussein invades mously warned that ‘‘the U.S. might well Foundation: Sea-based missile defenses are Saudi Arabia. You warn of Desert Storm II; have little or no warning before operational technically feasible and could contribute sig- he says he has a weapon of mass destruction deployment’’ of ballistic missiles capable of nificantly to protecting the United States— on a ship near the U.S. and is ready to sac- delivering, for example, Iranian, Iraqi or all the United States—as well as America’s rifice Baghdad if you are ready to lose New North Korean weapons of mass destruction forces and allies overseas against ballistic York. Decide. against American cities. missile attack. Or this: China, not now a rogue state, goes This finding stands in stark contrast to the The inherent appeal from strategic, tech- into an internal convulsion and an irrational pollyannish, and highly politicized, judg- nical and fiscal points of view also prompted warlord attacks Taiwan. You threaten to in- ment rendered by the Clinton administra- Jim Nicholson, the chairman of the Repub- tervene; within 10 minutes, ICBM’s are tar- tion’s 1995 National Intelligence Estimate lican National Committee, to make prompt geted on all major U.S. cities. Decide. (NIE) on the emerging danger posed by bal- deployment of the AEGIS system the center- Before you do, remember this: in 1998, the listic missiles. Incredibly, that NIE found piece of a dramatic pronouncement: In these C.I.A. told your predecessor that it was high- there would be no threat from long-range pages on June 21, he invited ‘‘President Clin- ly unlikely that any rogue state ‘‘except pos- ballistic missiles for at least 15 years. ton, Vice President Al Gore and other Demo- sibly North Korea’’ would have a nuclear Of course, in order to reach this prepos- crats to join [the GOP] and make safeguard- weapon capable of hitting any of the ‘‘con- terously sanguine conclusion, the Intel- ing America [against ballistic missile at- tiguous 48 states’’ within 10 to 12 years. ligence Community had to make three he- tack] a bipartisan project. If they will not, (That’s some exception; apparently our stra- roic assumptions: the Republican Party is prepared to have tegic assessors are untroubled at the pros- (1) Neither Russia nor China—which have this become a political issue.’’ pect of losing Pearl Harbor again.) such long-range missiles in place today— The problem, as Mr. Safire has pointed out, You have no missile defense in place. The would pose a danger. is that a sea-based missile defense (and in- C.I.A. assured your predecessor you would (2) Neither of these nations would help any deed, any other that would provide terri- have five years’ warning about other na- other state accelerate the acquisition of bal- torial protection of the United States) is in- tions’ weapons development before you listic missile technology. consistent with the 1972 Anti-Ballistic Mis- would have to deploy a missile defense. (3) And only the continental United States sile (ABM) Treaty. Worse yet, the nation But the C.I.A. record of prediction is poor. would be considered as targets, since Alaska would even be denied the ability to adapt the President Bush was assured that Saddam and Hawaii would be within range of me- AEGIS system to make effective defenses would have no nuclear capability for the dium-range missiles from Korea. against short-range missiles if new treaty ar- next 10 years; when we went in after he in- The Rumsfeld Commission made short rangements negotiated by the Clinton ad- vaded Kuwait, however, we discovered Iraq work of these assumptions. It noted that ministration and signed in New York last to be less than a year away. And India, de- Russia and China are both undergoing unpre- September are ratified. spite our expensive satellite surveillance, dictable transitions and are actively spread- The good news is that the Senate seems surprised us with its recent explosion. ing ballistic missile and other dangerous unlikely to go along with these agreements. Six months ago, Congress decided to get a technologies. (The commission also confirms This is particularly true in light of a new second opinion about our vulnerability. Don- a recent finding of Sen. Thad Cochran’s Gov- legal memorandum prepared for Heritage ald Rumsfeld, a former Defense Secretary, ernmental Affairs Subcommittee that the and providing analytical backup for the com- was named to lead a bipartisan Commission United States is itself an important, albeit mon-sense proposition that the ABM Treaty to Assess the Ballistic Threat to the United unintentional, contributor to the hemor- ceased to exist after the other party, the So- States. Its nine members are former high rhage of proliferation-sensitive equipment viet Union, ceased to exist. It is hard to be- Government officials, military officers and and know-how.) lieve any responsible Senator would want to scientists of unassailable credibility. Cleared Perhaps most importantly, Mr. Rumsfeld adopt new treaty impediments to missile de- for every national secret, these men with and his cohorts—including Dr. Berry fenses in the grim strategic environment de- command experience had the advantage de- Blechman, Dr. Richard Garwin and Gen. Lee scribed by the Rumsfeld Commission. nied to compartmented C.I.A. analysts. Butler, individuals expected by the Demo- The bad news is that the Clinton adminis- The unclassified summary of this ‘‘Team crats who appointed them to dissent from tration is proceeding with implementation of B’s’’ 300-page report was released last week any sharp critique of the administration’s the September agreements even though they and is a shocker. The direct threat to our NIE and, thereby, to neutralize the impact of have yet to be submitted to the Senate for population, it concluded, ‘‘is broader, more the commission’s findings—addressed them- its advice and consent, to say nothing of mature and evolving more rapidly than has selves to the missile threat to all of the their having been approved. In a May 1 been reported in estimates and reports by United States. They confirmed that Alaska memorandum, Defense Secretary William the intelligence community.’’ and Hawaii are at risk in the near-term. The Cohen directed that ‘‘formal planning and Not only are Iran and other terrorist states Rumsfeld commissioners went on, however, preparation activities’’ to ensure compliance capable of producing a nuclear-tipped missile to point out that missiles now in the inven- with these accords be undertaken using fis- within five years of ordering it up; they are tories of virtually every bad actor on the cal 1998 funds. As a practical matter, this capable of skipping the testing and fine-tun- planet could be readily launched from tramp means steps that would be non-compliant— ing we have depended on as our cushion to steamers or other vessels at the vast major- for example, developing more capable Navy get defenses up. That means, the commission ity of the American population living within missile interceptors for the AEGIS system— concluded, the warning time the U.S. will 100 miles of the nation’s coastlines. will be strangled in the crib. have to develop and deploy a missile defense As columnist William Safire pointed out in Taken all together, these developments is near zero. the New York Times yesterday, this reality make one thing perfectly clear: The United Let’s set aside our preoccupation with ex- means the United States could be subjected States will be defended against missile at- ecutive privileges and hospital lawsuits long July 24, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E1423 enough to consider the consequences of loads pose a growing threat to the United ka from consideration. Garbage in, garbage Team B’s judgment. The United States no States, its deployed forces and its friends out, as they say. It was this deeply flawed longer has the luxury of several years to put and allies. These newer, developing threats NIE that forced Congress to create the up a missile defense, as we complacently be- in North Korea, Iran and Iraq are in addition Rumsfeld Commission. lieve. If we do not decide now to deploy a ru- to those already posed by Russia and China, It should come as no surprise that the dimentary shield, we run the risk of Iran or nations with which we are not now in con- White House politicized U.S. intelligence in North Korea or Libya building or buying the flict but which remain in uncertain transi- order to justify its neglect in defending the weapon that will enable it to get the drop on tions. The newer ballistic missile-equipped nation. In fact, President Clinton politicizes us. nations’ capabilities will not match those of everything he touches. In the words of Wil- Rumsfeld’s commission was charged only U.S. systems for accuracy or reliability. liam Kristol, he and his minions subordinate with assessing the new threat and not about However, they would be able to inflict major all the purposes and instrumentalities of what we should do to meet the danger. destruction on the U.S. within about five government to their selfish purposes. This is Nine serious men concluded unanimously years of a decision to acquire such a capabil- the real significance of the parade of scan- that our intelligence agencies, on which we ity (10 years in the case of Iraq). During sev- dals emanating from the White House. Per- spend $27 billion a year, are egregiously mis- eral of those years, the U.S. might not be aware haps the American people are willing to tol- leading us. Smiling wanly, the Director of that such a decision had been made.’’ (Empha- erate sexual misconduct in high office as Central Intelligence, George Tenet, re- sis added.) long as the Dow Jones index continues to sponded that ‘‘we need to keep challenging So, will the Rumsfeld Commission change soar. But they cannot afford to tolerate offi- our assumptions.’’ minds in the White House? It should, but cial misconduct that jeopardizes their safety Wrong; we need to defend ourselves from don’t hold your breath. The Clinton adminis- and survival. the likely prospect of surprise nuclear black- tration is wedded not to real defense but to Why does the Clinton administration con- mail. A first step is Aegis, a naval theater an unrealistic policy of arms control by tinue to leave Americans defenseless against defense (named after the goatskin shield of international treaties, which often not only the world’s deadliest weapons? The failure to counter missiles armed with hyperlethal Zeus). But that requires this President to re- are not enforceable, but may exacerbate the weapons is incomprehensible, since we now define a 1972 treaty with the Soviets that he problem. Every time a U.S. ambassador de- have the technology to do the job, and at an thinks requires us to remain forever naked livers a demarche to Russian or Chinese offi- affordable cost. But deliberate vulnerability to all our potential enemies. cials over some piece of proliferation busi- is the administration’s preferred policy. It is The crisis is not likely to occur as Clin- ness, we signal how American intelligence without precedent in human history—that a ton’s sands run out. His successor will be the works—after which information tends to dry great military and economic power, faced one to pay—in the coin of diplomatic paral- up. with a dire and growing threat, and possess- ysis caused by unconscionable unprepared- Even more problematic is the fact that the ing the means to protect itself, intentionally ness—for this President’s failure to heed administration is forging ahead with the re- chooses to remain vulnerable. Team B’s timely warning in 1998 vision of the Anti-Ballistic Missile (ABM) The primary obstacle to missile defense is treaty, seeking implementation of this dubi- the 1972 Anti-Ballistic Missile (ABM) treaty [From the Washington Times, July 20, 1998] ous document before the Senate has ap- with the now defunct Soviet Union. This EVERY ROGUE HIS MISSILE proved it, as noted by Thomas Moore of the Cold War relic prohibited each treaty part- Heritage Foundation on the opposite page. In The Commission to assess the Ballistic ner from deploying a nationwide missile de- fact, most of the administration’s resistance Missile Threat to the United States deliv- fense and placed other limits on testing and to missile defense rests on the notion that ered its findings to Congress last week, and development, crippling the U.S. missile de- this would violate the ABM treaty and of- it would take more than nerves of steel not fense program from the very beginning. The fend the Russians, one of the four successor to find the Commission’s report spine- fall of the USSR should have eliminated the nations that inherited ballistic missiles from chilling. According to the nine-member bi- ABM Treaty as an obstacle to missile de- the Soviet Union, with which the original partisan Commission, the United States fense. Yet arms control and foreign policy treaty was concluded in 1972. Touching as could be vulnerable to ballistic missile at- elites, clinging to their old dogmas like such solicitude for Russian sensitivities may tack from any number of countries within pagan priests, have kept the U.S. ensnared in be, it hardly takes into account the fact that the next five years. Needless to say, it is not the ABM treaty even though our treaty part- Russia is one of the primary sources of pro- the best boys on the block who look to build ner and the Cold War conditions that gave liferation when it comes to missile tech- ballistic missiles; think North Korea, think rise to it are long gone. nology—and precisely one of the problems. Iran, and many other aspiring regional play- The Heritage Foundation recently commis- Enough is enough. We have in the Rums- ers. Swell, just swell. sioned a study by the Washington law firm of feld Commission report evidence aplenty But almost as chilling as the findings Hunton & Williams which concludes that the that we are facing a serious national secu- themselves is the fact that they are com- ABM treaty legally terminated with the end rity threat. To continue to leave Americans pletely at odds with the National Intel- of the USSR and the resulting absence of a vulnerable is unconscionable. ligence Estimate (NIE) produced by the CIA bona fide treaty partner. This conclusion is based on the relevant Constitutional law and just 3 years ago, a document that blithely [From the Washington Times, July 20, 1998] predicted that this threat would surely not international law, and has been vetted by be a problem until 15 years down the road. THE BEST DEFENSE ISA MISSILE DEFENSE the nation’s top legal scholars. However, the Clinton administration is no (Or at least, not for the 48 contiguous states, (By Thomas Moore) wedded to the ABM treaty that it is at- leaving Alaska and Hawaii to fend for them- On July 15 a Congressional commission tempting to solve the problem of no legally selves.) Not only was the CIA estimate too headed by former Defense Secretary Donald valid successor by creating a new ABM trea- Rumsfeld and composed of some of America’s optimistic to be believed, it was also bla- ty. An agreement signed last year in New best strategic analysts released its report on tantly political in the sense of providing ar- York would convert the now defunct ABM guments for the Clinton administration’s op- the ballistic missile threat to the United treaty into a new, multi-lateral agreement position to a national ballistic missile de- States. Contrary to what the Clinton admin- with Russia, Ukraine, Belarus and fense. istration would have us believe, the biparti- Kazahstan. The administration’s new ABM At the time, an incredulous Republican san Rumsfeld Commission found that a hos- agreement would impose new restrictions on Congress mandated a new study to be done, tile power could deploy long-range missiles the most promising theater missile defenses a ‘‘Team B’’ approach if you will, an alter- capable of striking the United States with as well. native analysis. In January, the Commis- little or no warning. The proliferation of Article II, Section 2 of the U.S. Constitu- sion, under the leadership of former Sec- missile components or entire systems might tion and other laws require that this new retary of Defense Donald Rumsfeld, sat down equip a rogue regime with strategic missiles ABM treaty come before the Senate for its with the mandate and the access over a six- before the intelligence community could advice and consent. But the Clinton adminis- month period to look at all the CIA’s infor- alert us in time to respond. tration is quietly implementing it without mation and studies. Their conclusions were Of course, the best response to the develop- the Senate’s approval. This is official mis- unanimous, and ought to convince any ment of such weapons is ballistic missile de- conduct writ large. If allowed to get away doubters that the urgent need is there to fense, but the Clinton administration has with this breach of the Constitution and counter the growing threat from abroad be- steadfastly opposed it. In 1995, to deflect statute law, the White House would lock us fore it is too late. criticism of its anti-missile defense posture, into vulnerability to ballistic missiles for The language of the 30-page unclassified the administration tasked the intelligence the foreseeable future. As in the suborning of executive summary (the classified report de- community to answer skewed questions U.S. intelligence, the White House shows a livered to the intelligence committees of about the missile threat. These questions fundamental contempt for the legal and Congress is five times as long) deserves to be were clearly designed to produce an assess- moral norms which have protected our lib- quoted to underline the gravity of the situa- ment favorable to the president’s policies. erty and security for 200 years and made our tion: The result was a National Intelligence Esti- system of self-government the envy of the ‘‘Concerted efforts by a number of overtly mate (NIE) assessing the missile threat to world. or potentially hostile nations to acquire bal- the U.S. homeland as 15 years in the future— Those who care about America’s security listic missiles with biological or nuclear pay- and incidentally, omitting Hawaii and Alas- and the rule of law must work to make sure E1424 CONGRESSIONAL RECORD — Extensions of Remarks July 24, 1998 the administration does not succeed in im- pocrisy of the abortion debateÐthat the But if these business ventures are saddled plementing the sweeping new restrictions of strongest opponents of the right to choose by the costs and distractions of unwarranted the New York accords as a mere executive also oppose programs promoting comprehen- lawsuits, filed when stock prices fluctuate for agreement. Defense Secretary William Cohen sive sex education and birth control, which ac- has already issued guidance to the Pentagon reasons often beyond the control of business for compliance with the New York ‘‘demar- tually reduce unintended pregnancies. Instead, management, the consequences are to chill cation’’ agreements on theater missile de- anti-choice Members of Congress would make economic growth. Despite the absence of fenses, systems which were not even covered access to family planning options more dif- wrongdoing by managers, corporations are es- in the original ABM Treaty. The body which ficult, more dangerous, more expensive, and sentially forced to pay large sums to avoid implements the ABM Treaty, the Standing more humiliating. A vote to override the Presi- even larger expenses associated with their Consultative Commission (SCC), will meet dent's veto would threaten doctors with fines legal defense. The ultimate loser, of course, is again in Geneva in September. Unless and imprisonment, and prevents not one teen the individual long-term investor whose share blocked by Congress, that meeting will ap- pregnancy. value was diminished as a result of these prove a periodic five-year renewal of the 1972 Doctors, not politicians, must decide what ABM Treaty and take further steps to suits. harden the New York ABM agreement into a medical treatments are the best for these pa- Mr. Speaker, let me assure my colleagues fait accompli. Compounding the offense, the tients. Doctors use this procedure when they that the reform measure before us continues American delegation of the SCC is led by a believe it is the safest way to end a pregnancy to protect investors. It recognizes the impor- man who has never received Senate con- and leave the woman with the best chance to tant role the private litigation system has firmation. have a healthy baby in the future. Congress played in maintaining the integrity of our cap- Congress must insist that the White House should not second-guess their medical judg- stop the illegal implementation of the New ital markets. Yet, at the same time, the bill ment. recognizes that forum shopping cannot be a York ABM agreement and submit it for the I ask my colleagues in the majority, who Senate’s advice and consent in a timely fash- new pathway for enterprising parties to gain ion, using all the tools at its disposal if nec- often express their disdain at the federal gov- new profits. The rights of the aggrieved inves- essary. For example, Congress should amend ernment's involvement in their personal lives, tor to seek justice and restitution is main- the relevant appropriations bill to prohibit to oppose the veto override. It doesn't get tained, while the opportunity to manipulate any funds for ABM treaty-related activities more personal than this. procedures to the detriment of the company of the SCC until the Senate has had the f and legitimate investors is hopefully ended. chance to approve the new ABM package. The Senate can take legislative ‘‘hostages,’’ SECURITIES LITIGATION UNIFORM The Securities Litigation Uniform Standards denying confirmation to administration ap- STANDARDS ACT OF 1998 Act is supported by the Securities and Ex- pointees until the White House keeps its change Commission and the administration promise to submit the new agreements. SPEECH OF and I urge its support. The unprecedented refusal of a U.S. presi- HON. JANE HARMAN dent to perform the most important func- f tions of his office—provide for the common OF CALIFORNIA defense and uphold the law—confronts the IN THE HOUSE OF REPRESENTATIVES THE GROWING U.S. TRADE American people with a stark moral and po- Thursday, July 23, 1998 DEFICIT WITH CHINA AND JAPAN litical dilemma. If we are to have no say through our representatives in Congress over Ms. HARMAN. Mr. Speaker, as an original policies that put our lives in jeopardy, can cosponsor of H.R. 1689, this day has been a HON. WILLIAM O. LIPINSKI we claim any longer to be self-governing long time coming. OF ILLINOIS citizens of a constitutional republic? The I first want to commend the chairmen and Rumsfeld Commission has sounded a clear ranking members of the relevant committees, IN THE HOUSE OF REPRESENTATIVES warning about the threat of ballistic mis- as well as my friend and colleague, ANNA Friday, July 24, 1998 siles. But this warning tell us something ESHOO, for their leadership. Mr. LIPINSKI. Mr. Speaker, I rise today to else—we can no longer cling to the illusion Mr. Speaker, in 1995, Congress enacted, speak about our rapidly growing trade deficit that the character of our leaders doesn’t over the President's veto, the Securities Litiga- count. If our leaders won’t fulfill their most with China and Japan and to strongly urge the tion Reform Act. This act limits the opportuni- important moral and political responsibil- Administration to take stronger measures to ties to bring abusive and frivolous class action ities, then we the people must held them ac- lower foreign trade barriers to American goods suitsÐsuits which divert precious financial re- countable. The ancient Greeks believed that and services. a man’s character is his fate. The same may sources from leading-edge high technology be said of nations. companies. The act continues protections for China and Japan are this nation's largest deficit trading partners. In 1997, our respective f investors against genuine fraud, as it should, but protects forward-looking statements made trade deficits with China and Japan were $53 POLITICAL VOTE AND A POLITI- by companies issuing nationally-traded securi- billion and $58.6 billion. That's a combined CAL DEBATE ON A WOMAN’S ties from strike suits. deficit of over $110 billion. Needless to say, RIGHT TO CHOOSE With ``strike'' suits in Federal courts less but nevertheless an important issue to empha- likely to succeed, a new venue has been in- size, the massive trade deficits with Japan and HON. FORTNEY PETE STARK creasingly usedÐState courts. Such suits po- China costs us billions of dollars of exports tentially have the same chilling effect as those and tens of thousandsÐeven hundreds of OF CALIFORNIA thousands of jobs. IN THE HOUSE OF REPRESENTATIVES previously brought in Federal courtÐuntil today. The Administration bears a large part of the Thursday, July 23, 1998 The measure before us, the Securities Liti- blame by deferring to our deficit trading part- Mr. STARK. Mr. Speaker, I rise today to op- gation Uniform Standards Act, sets forth clear ners during negotiations instead of being more pose the vote to override the President's veto and uniform standards for bringing securities aggressive in promoting fair trade agreements of legislation passed by this Congress to crim- class actions under State law and would gen- that advance the interests of American work- inalize a specific abortion procedure used in erally proscribe bringing a private class action ers. It's not as if the Administration does not catastrophic pregnancies. Make no mistake suit involving 50 or more parties except in have the tools to force foreign nations to open about it, this is a political vote and a political Federal court. up their markets. They do. Section 301 of the debateÐa debate fraught with inflammatory Mr. Speaker, enactment of this measure Trade Act of 1974 comes to mind. It just rhetoric and distorted facts. should complete an important reform initiated seems to me that they lack the will and initia- The fact is, there is no medical procedure in 1995. Securities litigation needed reform. tive. Do they even care about the great Amer- called a ``partial birth abortion''Ðthat's a name The future of our Nation's competitive advan- ican middle class, or are they just pandering made up by opponents of choice to distort the tage in the world lies in our ability to develop for political posturing? issue. What we're talking about is a procedure products and services that are on the leading I strongly believe with all of my heart that used in late term catastrophic pregnancies, edge of technology and research. The busi- the Administration can do more to open up when the fetus has a horrible abnormality, or ness ventures which undertake such activities foreign markets, especially with our largest the pregnancy seriously threatens the moth- are among the fastest growing sectors of our deficit trading partners: China and Japan. Sec- er's life or health. economy. Indeed, in many places in our coun- tion 301 is a powerful tool in our arsenal. Con- The vote to override the President's veto of try, including California's 36th District, they are gress gave it to the executive branch, but this this bill is a blatant attempt to shelter the hy- the pride of our economy. Administration has been extremely reluctant to