E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, TUESDAY, NOVEMBER 2, 1999 No. 152 Senate The Senate met at 9:30 a.m. and was RECOGNITION OF THE MAJORITY other provisions of rule XXII be in called to order by the President pro LEADER order. tempore [Mr. THURMOND]. The PRESIDING OFFICER (Mr. The PRESIDING OFFICER. Without DEWINE). The majority leader is objection, it is so ordered. Mr. LOTT. We will work to get a PRAYER recognized. Mr. LOTT. I thank the Chair. time for those amendments to be filed The Chaplain, Dr. Lloyd John f because we do need to get a look at Ogilvie, offered the following prayer: those amendments, even though they SCHEDULE are relevant, just so they can be con- Gracious God, You have called the sidered by the managers of the legisla- men and women of this Senate to glo- Mr. LOTT. Mr. President, the Senate tion. rify You by being servant-leaders. The will resume consideration momentarily Mr. President, I ask unanimous con- calling is shared by the officers of the of the conference report to accompany sent that all first-degree amendments Senate, Senators’ staffs, and all who the District of Columbia, Labor-HHS, be filed by 2 p.m. today, notwith- enable the work done in this Chamber. and Education bill. By previous con- standing rule XXII. Keep us focused on the liberating truth sent, at 10 a.m., the Senate will pro- The PRESIDING OFFICER. Without that we are here to serve by serving ceed to a vote on the conference report. objection, it is so ordered. our Nation. Our sole purpose is to ac- That vote will be followed up by two Mr. LOTT. Mr. President, I ask unan- cept Your absolute Lordship over our cloture votes in relation to the Carib- imous consent that the time I am own lives and then give ourselves to- bean/African trade bill. Senators can about to use come out of my leader tally to the work this day. expect then at least two stacked votes to begin at approximately 10 a.m. Clo- time. Give us the enthusiasm that comes ture is expected to be invoked on the The PRESIDING OFFICER. Without from knowing the high calling of serv- trade bill, and therefore the Senate objection, it is so ordered. ing in government. Grant us the holy will begin 30 hours of postcloture de- f esteem of knowing that You seek to ac- bate during today’s session of the Sen- WALTER PAYTON complish Your plan for America ate. It is hoped this bill can be com- through the legislation of this Senate. pleted in the next day or so, certainly Mr. LOTT. Mr. President, Walter Free us from secondary, self-serving before the end of the week, because we Payton was the pride of Columbia, MS. goals. Help us to humble ourselves and do have some other very important He died all too early this past Monday ask how we may serve today. We know issues we want to complete this week. at the age of 45 years—too young for a that happiness comes not from having We do want to take up the financial person of such integrity, ability, and things or getting recognition but from services modernization conference re- generosity. serving in the great cause of imple- port, and we want to move to the bank- The Clarion Ledger newspaper of my menting Your righteousness, justice, ruptcy bill that Senator DASCHLE and I home State this morning wrote a mag- and mercy for every person and in have been trying to get an agreement nificent article about him. It said Wal- every circumstance of this Nation. We on how to bring to the floor. We have ter Payton amazed his Mississippi take delight in the ultimate paradox of had objection so far, but we are going teammates with his kindness almost as life: The more we give ourselves away, to persist in getting this to the floor in often as he dazzled them with his abil- the more we can receive of Your life. In a way that would be fair to both sides. ity. They tell of a man who studied our Lord’s name. Amen. f audiology in college after playing high school football with a deaf friend. That f ORDER OF PROCEDURE told a lot about the early life of this Mr. LOTT. Mr. President, I ask unan- outstanding young man, and it is the PLEDGE OF ALLEGIANCE imous consent that all second-degree kind of life he lived until his final day amendments must be filed at the desk this past Monday. The Honorable MIKE DEWINE, a Sen- by 10 a.m. today. Surprisingly, the man who would be- ator from the State of Ohio, led the The PRESIDING OFFICER. Without come a great football player did not Pledge of Allegiance, as follows: objection, it is so ordered. even try out for football until his jun- I pledge allegiance to the Flag of the Mr. LOTT. I also ask unanimous con- ior year in high school, choosing in- United States of America, and to the Repub- sent that all amendments to the pend- stead to play drums in the high school lic for which it stands, one nation under God, ing trade bill must be relevant to the band. But he learned the game of foot- indivisible, with liberty and justice for all. substitute or the issue of trade and all ball as fast as he could run, and long

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

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VerDate 29-OCT-99 01:17 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.000 pfrm01 PsN: S02PT1 S13620 CONGRESSIONAL RECORD — SENATE November 2, 1999 before the Nation had heard of the Chi- the Senate that today our State of Mis- Jackson State a year earlier at R.F.K. Sta- cago Bear named ‘‘Sweetness,’’ Mis- sissippi, mourns with a heavy heart, dium in Washington, and now it was our turn sissippians were cheering a Jefferson the passing of Walter Payton, who died to go to the Deep South, deeper than I’d ever been. I was intrigued by Mississippi, the High superhero they called yesterday. state so tied to civil rights history. All our ‘‘Spiderman’’ and a Jackson State His accomplishments on the football coach kept talking about was that these Tiger known as Walter. field at Jackson State University and Southern boys were still fighting the Civil His 3,563 yards rushing at Jackson at Soldiers Field in Chicago as a mem- War: the South thought it was better than State University was one of nine school ber of the Chicago Bears are well the North, he said, and when it came to foot- records he set, and he scored a college known to all of us. He was the greatest ball, felt it was heartier, better and tougher. career total of 66 touchdowns. At Jack- running back in the history of football. Jackson State had a great football legacy: He reflected a great deal of credit on Willie Richardson, Gloster Richardson, son State, in 1973, he led the Nation in Verlon Biggs, Harold Jackson, Richard Cast- scoring with 160 points, and his 464 ca- our State not only because he was a er, Lem Barney. This particular year it had reer points set an NCAA record. But great football player but because of his Jerome Barkum, later a wide receiver with Jackson State was a Division 1–AA personality, his generosity, and his the Jets, Robert Brazile, later a linebacker school, and Walter did not get the same kindness to his family and friends. I with the Oilers, and Eddie Payton, Walter’s attention as players from some of the know he would often fly members of older brother, who became a great N.F.L. bigger, well-known colleges. Still, the his family and friends—including a punt returner and then a professional golfer. Bears knew a caliber player when they member of my staff, Barbara Rooks, Walter began the year unknown, playing be- hind his brother. By November he was still saw one, and they knew about some of who is a close friend of the Payton playing behind his brother but was Jackson the other famous Mississippians who family—to Chicago for football games. State’s secret weapon. had preceded him, so they drafted him He was devoted to his mother, Mrs. My recollection of the game is reduced to fourth in the overall draft in 1975. Aylene Payton and his sister Pamela one poignant frame—that first meeting at In his first NFL game in 1975, he and he was very close to his brother the 10-yard line. A sweep with Payton slicing rushed eight times for a total of zero Eddie, who was a great football payer past the line, over the linebackers and fi- too as a well as a professional golfer. nally into the secondary. There was Payton, yards. But that did not tell the story of there was me; I hit him and felt solid con- what was to come. The Bears did not Eddie Payton also coached the Jackson tact, then felt Payton bounce back to the give up on him, and Walter Payton State University golf team to the na- outside for a touchdown. What I remember didn’t give up on himself. He worked as tional championship. thinking at the moment was that this guy hard in Chicago as he had in Mis- The family is well respected in so had great balance, gyroscopic balance. He sissippi. By the end of his rookie year, many ways. I could go on for a long was nearly horizontal, legs still churning. he had started seven games and rushed time and tell you more about his moth- Payton was rushing toward the National for 679 yards and seven touchdowns. er and what a dear lady she is and the Football League; I was headed toward jour- exemplary community spirit of all the nalism, not doing such a good job of tackling The next year he had the first of what but recording the moment. would be 10 1,000-yard seasons, rushing members of Walter Payton’s family. Years later in Chicago I teased him about for 1,390 yards and 13 touchdowns. I extend to his wife Connie and their Morgan State’s victory in 1970. Payton re- NFL coaches termed him the ‘‘com- children Jarrett and Brittney my deep- minded me that we had won that game when plete football player.’’ Just last night, est sympathies. The articles in the New he was still in high school. I saw Mike Ditka saying he was the York Times today describe well his re- Payton represents so much to so many. He best, most complete football player he markable career, and they include ac- carried the banner of black college football colades from fellow players, coaches, to an unprecedented level. To one extent or had ever seen. He bested Jim Brown’s another we all carried a burden of proof. One longstanding rushing record of 12,312 and friends. I ask unanimous consent success reflected well on the group. Indi- yards in 1984. that these articles on the life and ca- vidual success was group success, even if the But he also was more than just a reer of Walter Payton along with his player went to a different institution. Such football player. He worked to help biography as an Enshrinee of the Pro as when Grambling sent eight players to the mankind. He created the Halas/Payton Football Hall of Fame be printed in the N.F.L. one season, or now when Mike Foundation to assist Chicago inner- RECORD. Strahan, who played at Texas Southern, runs city youth in completing their edu- There being no objection, the mate- in the winning touchdown. Payton was an rial was ordered to be printed in the object of such pride. His success felt good cation. He believed in nurturing young and warm. people through education and inspira- RECORD, as follows: He held so many N.F.L. records. He set the tion, and he knew that the rewards of [From the Clarion Ledger, Nov. 2, 1999] career record for rushing yards, 16,726; for ca- sports came in the challenges he set for FROM COLLEGE IN MISSISSIPPI TO CHAMPION reer attempts, 3,838; for rushing yards in a himself, what he learned about himself, (By William C. Rhoden) game, 275; for seasons with 1,000 or more and what he accomplished as part of a The news that Walter Payton died yester- yards, 10. He broke Jim Brown’s N.F.L. ca- team. day at his home in a suburb of Chicago came reer rushing mark, 12,312 yards, in Chicago Walter Payton’s light shown brighter not so much as a shock but as a sorrowful, on Oct. 7, 1984, the same day he broke piercing spike. We were prepared last Feb- Brown’s mark of 58 100-yard rushing games. earlier than many people his age. That A large part of Payton’s legacy is made up is why his passing on Monday was even ruary by the shock of seeing the once robust Payton looking gaunt and frail as he an- of numbers. Yesterday, Robert Hughes, the more difficult to take. At his induction nounced that he suffered from a rare liver Jackson State head coach, was an assistant in the NFL Football Hall of Fame in disease. Now we mourn a family’s loss of a coach in 1971, said that what Payton meant July 1993, he asked his son Jarrett to father and husband, and the industry’s loss went beyond the numbers. ‘‘What’s most be the first son to present his father for of a great athlete. I mourn the loss of a memorable to me is when he started getting induction into the Football Hall of shared past, life petals that peel away each on a roll and started after Jim Brown’s record,’’ Hughes said. ‘‘Brown was the great- Fame. His son said: time someone contemporary dies. I was not close to Walter Payton, but rath- est running back of all time. He didn’t come ‘‘Not only is he a great athlete, he’s from a predominantly black school; he’s a role model—he’s my role model.’’ er attached to him. We first met 28 years ago this month, on from Syracuse. When Walter came in from a Drummer, NCAA champion, college Nov. 13, 1971. This was the sort of one-on-one little school in Mississippi to top all that, Hall of Famer, Pro Football All Star, introduction that defensive backs dread and that’s what made it great.’’ NFL Hall of Famer, ‘‘Sweetness.’’ outstanding running backs love. We met at Walter Payton, with the aggressive, elu- Role model to his son and millions of the 10-yard line in Mississippi Memorial sive style that was formed at Jackson State. other Jarretts, that is the title Walter Stadium. The N.F.L.’s career rushing leader. The run- Payton would most cherish as his This was before Payton became Sweetness; ner who led Chicago to its only Super Bowl victory. Dead so young, at 45. legacy. before he became a Chicago Bear; before we were paid for plying our particular crafts. We Mr. COCHRAN. Mr. President, will [From the New York Times, Nov. 2, 1999] met in the rarefied atmosphere of black col- the Senator yield a moment to me? lege football. He was a freshman at Jackson FOOTBALL REMEMBERS PAYTON, THE Mr. LOTT. I will be delighted to yield State University in Mississippi; I was a sen- ULTIMATE PLAYER to my colleague from Mississippi. ior at Morgan State in Baltimore. This was (By Mike Freeman) Mr. COCHRAN. Mr. President, I join an inter-sectional game between once-beat- Late yesterday afternoon each National my distinguished colleague in advising en, once-tied opponents. We had beaten Football League team received an e-mail

VerDate 29-OCT-99 01:55 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.003 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13621 message from the Chicago Bears. Many ex- with him. You could tell he was very The last point I will make is, toward ecutives knew what it said before they read genuine.’’ the end of his life when announcing he it: Walter Payton, one of the best ever to Bears fans in Chicago felt the same way, faced this fatal illness, he made a plea which is why reaction to his death was swift play running back, had died. across America to take organ donation For the past several days it has been ru- and universal. mored that Payton had taken a turn for the ‘‘He to me is ranked with Joe DiMaggio in seriously. He needed a liver transplant worse, so the league was braced for the news. baseball—he was the epitome of class,’’ said at one point in his recuperation. It Still, the announcement that Payton had Hank Oettinger, a native of Chicago who was could have made a difference. It did not succumbed to bile-duct cancer at 45 rocked watching coverage of Payton’s death at a bar happen. and deeply saddened the world of profes- on the city’s North Side. ‘‘The man was such I do not know the medical details as sional football. a gentleman, and he would show it on the to his passing, but Walter Payton’s ‘‘His attitude for life, you wanted to be football field.’’ message in his final months is one we around him,’’ said Mike Singletary, a close Several fans broke down crying yesterday as they called into Chicago television sports should take to heart as we remember friend who played with Payton from 1981 to him, not just from those fuzzy clips of 1987 on the Bears. Singletary read Scripture talk show and told of their thoughts on at Payton’s side on the morning of his death. Payton. his NFL career but because he re- Asked what made Payton special, Ditka ‘‘He was the kind of individual if you were minded us, even as he was facing his said: ‘‘It would have to be being Walter down he would not let you stay down,’’ Sin- last great game in life, that each and Payton. He was so good for the team. He was gletary said. every one of us has the opportunity to the biggest practical joker and he kept ev- Commissioner Paul Tagliabue said the eryone loose. And he led by example on the pass the ball to someone who can carry N.F.L. family was devastated by the loss of field. He was the complete player. He did ev- it forward in organ donation, and the Payton. Tagliabue called him ‘‘one of the erything. He was the greatest runner, but he Nation’s commitment to that cause greatest players in the history of the sport.’’ was also probably the best looking back you would be a great tribute to him. ‘‘The tremendous grace and dignity he dis- ever saw.’’ played in his final months reminded us again I yield the floor. why ‘Sweetness’ was the perfect nickname The PRESIDING OFFICER. The Sen- f for Watler Payton,’’ he said in a statement. ator from Illinois. THE DEATH OF WALTER PAYTON In his 13 seasons with Chicago, Payton Mr. DURBIN. Mr. President, I thank rushed for 16,726 yards on 3,838 carries, still my colleagues from the State of Mis- Mr. FITZGERALD. Mr. President, I both N.F.L. records. One of Payton’s most sissippi who are justifiably proud of rise today to express my sadness at the impressive feats was that he played in 189 of Walter Payton. His home State of Mis- news of the death of one of football’s 190 games from 1975, his first season, until sissippi can look to Walter Payton greatest stars ever, Chicago’s own Wal- his retirement in 1987. For someone with ter Payton. Payton’s style to participate and dominate with great pride. There is a great deal of sadness in my home State of Illinois, Walter Payton was a hero, a leader, in that many games—he enjoyed plowing and a role model both on and off the into defenders and rarely ran out of bounds particularly in the city of Chicago, to avoid a tackle—is remarkable. with the passing of Walter Payton at field. For 13 years, he thrilled Chicago ‘‘He is the best football player I’ve ever the age of 45. Bears’ fans as the NFL’s all-time lead- seen,’’ said Saints Coach Mike Ditka, who Later today, I will enter into the ing rusher—perhaps one of the greatest coached Payton for six seasons with Chicago. RECORD a statement of tribute to Mr. running backs ever to play the game of Ditka added: ‘‘At all positions, he’s the Payton, but I did not want to miss this football. After retiring from profes- best I’ve ever seen. There are better runners opportunity this morning to mention sional football in 1987, Payton contin- than Walter, but he’s the best football player several things about what Walter ued to touch the lives of Chicagoans as I ever saw. To me, that’s the ultimate an entrepreneur and a community lead- compliment.’’ Payton meant to Chicago and Illinois. What always amazed Payton’s opponents He was more than a Hall of Fame er. was his combination of grace and power. football player. He ran for a record Walter Payton’s historic career Payton once ran over half dozen players 16,726 yards in a 13-year career, one of began at Jackson State University, from the Kansas City Chiefs, and on more those years shortened by a strike, and where he set a college football record than one occasion he sprinted by speedy de- yet he established a record which prob- for points scored. The first choice in fensive backs. ably will be difficult to challenge or the 1975 NFL draft, Payton—or ‘‘Sweet- It did not take long for the N.F.L. to see surpass at any time in the near future. ness’’ as he was known to Chicago that Payton was special. In 1977, his third Bears fans—became the NFL’s all-time 1 The one thing that was most amazing season, Payton, standing 5 feet 10 ⁄2 inches leader in running and in combined net and weighing 204 pounds, was voted the about Walter Payton was not the fact league’s most valuable player after one of he was such a great rusher, with his yards and scored 110 touchdowns during the best rushing seasons in league history. hand on the football and making moves his career with the Bears. He made the He ran for 1,852 yards and 14 touchdowns. His which no one could understand how he Pro Bowl nine times and was named 5.5 yard a carry that season was a career best pulled off, but after being tackled and the league’s Most Valuable Player and against Minnesota that season he ran for down on the ground, hit as hard as twice, in 1977 and 1985. In 1977, Payton 275 yards, a single-game record that still could be, he would reach over and pull rushed for a career-high 1,852 yards and stands. up the tackler and help him back on carried the Bears to the playoffs for ‘‘I remember always watching him and his feet. the first time since 1963. He broke Jim thinking, ‘How did he just make that run?’ ’’ Brown’s long-standing record in 1984 to Giants General Manager Ernie Accorsi said. He was always a sportsman, always a ‘‘He was just a great player. gentleman, always someone you could become the league’s all-time leading Accorsi echoed the sentiments of others admire, not just for athletic prowess rusher, and finished his career with a that Payton may not have had the natural but for the fact he was a good human record 16,726 total rushing yards. In gift of running back Barry Sanders or the being. 1985–86, Walter Payton led the Bears to athleticism of Jim Brown, but that he made I had the good fortune this last an unforgettable 15–1 season and Super the most of what he had. Fourth of July to meet his wife and Bowl victory—the first and only Super ‘‘I think Jim Brown is in a class by him- son. They are equally fine people. His Bowl win in Bears’ history. Walter self,’’ Accorsi said. ‘‘And then there are son, late in his high school career, in Payton was inducted into the Pro other great players right behind him like Walter Payton.’’ his junior year, decided to try out for Football Hall of Fame in 1993, and was Payton was known as much for his kind- football. The apple does not fall far selected this year as the Greatest All- ness off the field as his prowess on it. He was from the tree; he became a standout at Time NFL Player by more than 200 involved with a number of charities during Saint Viator in the Chicago suburb of players from the NFL Draft Class of and after his N.F.L. career, and although he Arlington Heights and now is playing 1999. valued his privacy he was known for his at the University of Miami. I am sure More important, Walter Payton kindness to people in the league whom he did he will have a good career of his own. matched his accomplishments on the not know. With the passing of a man such as football field with his selfless actions Accorsi saw Payton at the 1976 Pro Bowl, Walter Payton, we have lost a great off the field on behalf of those in need. and even though it was one of the first times the two had met, Payton told Accorsi, ‘‘I model in football and in life—the way He earned a degree in special education hope God blesses you.’’ he conducted himself as one of the from Jackson State University and ‘‘When some guys say stuff like that, you most famous football players of all worked throughout his adult life to im- wonder if it is phony,’’ Accorsi said, ‘‘but not time. prove the lives of children. In 1988, he

VerDate 29-OCT-99 01:17 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.002 pfrm01 PsN: S02PT1 S13622 CONGRESSIONAL RECORD — SENATE November 2, 1999 established the Halas/Payton Founda- linemen, all of whom were inextricably exceeds the demand. The longer that tion to help educate Chicago’s youth. linked to the surfeit of records he patients wait on the organ donation Walter Payton was truly an Amer- amassed. He play the game with a rare list, the more likely it is that their ican hero in every sense of the term. humility—refusing to call attention to health will deteriorate. In Payton’s He died tragically at age 45, but his himself—always recognizing the indi- case, the risk of deadly complications, legacy will live in our hearts and minds viduals who paved the way for his which included bile duct cancer, grew forever. Today, Mr. President, Illinois achievements. too quickly. Payton likely would have mourns. Sweetness, we will miss you. He once refused to be interviewed by had to wait years for his life-saving Mr. DURBIN. Mr. President, I rise former Ms. America Phyllis George un- liver. This was time he did not have be- today to pay tribute to perhaps the less his entire corps of linemen were in- fore cancer took his life yesterday. A best running back who ever carried a cluded. Following his first 1,000 yard day when everyone who needs a life- football, Walter Payton, who died yes- rushing season, Payton bought his of- saving organ can be treated with one terday at the age of 45. In Carl Sand- fensive linemen engraved watches. The cannot come soon enough. burg’s City of the Big Shoulders, engraving, however, made no mention More than 66,000 men, women, and ‘‘Sweetness,’’ as Payton was nick- of the 1,390 yards he finished with that children are currently awaiting the named, managed to carry the football year, but instead noted the score of the chance to prolong their lives by finding hopes of an entire city on his shoulders game in which he reached 1,000 yards, a matching donor. Minorities, who for 13 magnificent years. underscoring the essential contribu- comprise approximately 25% of the From the law firms on LaSalle to the tions that his offensive linemen made population, represent over 40% of this meat packing plants on Fulton, Mon- in enabling him to achieve this feat. organ transplant waiting list. Because day mornings in Chicago were always And how many times did we see Wal- of these alarming statistics, thirteen filled with tales of Payton’s exploits on ter Payton dance down the field, a limp people die each day while waiting for a the field from the previous day. We leg, a quick cut, a break-away. He donated liver, heart, kidney, or other marveled at his ability and reveled in could find daylight in a crowded eleva- organ. Half of these deaths are people the glory he brought to Chicago and Da tor. And when a tackler finally brought of color. The untimely death of Payton Bears. In a life cut short by a rare dis- him down, Walter Payton would jump is a wake-up call for each of us to be- ease, he blessed Chicago with several to his feet and reach down to help his come organ donors and discuss our in- lifetimes of charisma, courage, and tal- tackler up. That’s the kind of football tentions with our families so that we ent. player he was. That’s the kind of per- do not lose another hero, or a son, a Who could forget the many times son he was. daughter, a mother or a father to a dis- Payton lined up in the red zone and Payton lightened the atmosphere at ease that can be overcome with an soared above opposing defenders for a Hallas Hall with an often outlandish organ transplant. Bears touchdown? Or the frequency sense of humor, even during the years Mr. President, today is a sad day in with which his 5–10, 204-pound frame when the Bears received boos from the Chicago and in our nation. We have bowled over 250-pound linebackers en fans and scathing criticism from the lost a father, a husband, a friend, and a route to another 100-yard-plus rushing press. Rookies in training camp were role model all at once. While we are game? His relentless pursuit of that often greeted by firecrackers in their overcome with grief, we are also re- extra yard and the passion with which locker room and unsuspecting team- minded of the blessings that Payton he sought it made his nickname, mates often faced a series of pranks bestowed upon his wife, Corrine, his Sweetness, all the more ironic. It when they turned their backs on children, Jarrett and Brittney, and the would take the rarest of diseases, bare- Payton. Just last week, as Payton was city of Chicago during his brief time ly pronounceable and unfortunately in- clinging to life, he sent Suhey on a trip with us. surmountable, to finally bring Sweet- to Hall of Famer Mike Singletary’s So thanks for the memories, Sweet- ness down. house, but not before he gave Suhey a ness. Soldier Field will never be the It was that passion that inspired series of incorrect addresses and di- same. Payton’s first position coach, Fred rected Suhey to hide a hamburger and f O’Connor, to declare: ‘‘God must have a malt in Singletary’s garage. taken a chisel and said, ‘I’m going to While Payton lived an unparalleled DISTRICT OF COLUMBIA APPRO- make me a halfback.’ ’’ Coach Ditka life on the football field, he also lived PRIATIONS ACT, 2000—CON- called Payton simply ‘‘the greatest a very full life off the field. He was a FERENCE REPORT—Resumed football player I’ve ever seen.’’ brilliant businessman, but never too The PRESIDING OFFICER. Under Payton’s eight National Football busy to devote countless hours to char- the previous order, the clerk will re- League (NFL) records, most of which itable deeds, most of which were unso- port the conference report. still stand today, merely underscore licited and voluntary. Sweetness The legislative clerk read as follows: his peerless performance on the field shared with us a sense of humanity Conference report to accompany H.R. 3064 and his extraordinary life away from that will endure as long as his records. making appropriations for the Government it. The man who wore number 34 distin- I had the good fortune on July 4th to of the District of Columbia and other activi- guished himself as the greatest per- meet his wife and children, who are ties chargeable in whole or in part against former in the 80-year history of a team equally fine people. The apple didn’t revenues of said District for the fiscal year that boasts more Hall of Famers than fall too far from the tree. Jarrett ending September 30, 2000, and for other pur- any other team in League history. Payton, like his father, decided to try poses. He played hurt many times through- out for football in his Junior Year. The PRESIDING OFFICER. The Sen- out his career, and on one notable oc- Jarrett was a standout at St. Viator ator from Alaska. casion, when he should have been hos- High School in Arlington Heights, a Mr. STEVENS. Mr. President, what pitalized with a 102 degree fever, he Chicago suburb, and he is now playing is the time situation with regard to the played football. On that day, November football at the University of Miami. It conference report? 20, 1977, Payton turned in the greatest looks as if he may have quite a career The PRESIDING OFFICER. The Sen- rushing performance in NFL history, of his own. ator from Alaska has 5 minutes. rushing for a league record 275 yards en In his last year, Walter Payton Mr. STEVENS. Is there a set time to route to victory against the Minnesota helped illuminate the plight of individ- vote, Mr. President? Vikings. uals who are afflicted with diseases The PRESIDING OFFICER. We are Self-assured but never cocky, Sweet- that require organ transplants. Pa- to vote in 30 minutes. There are six ness had no interest in indulging the tients with the rare liver disease that Senators who have 5 minutes apiece. media by uttering the self-aggrandizing Payton contracted, primary sclerosing Mr. STEVENS. Mr. President, we will sound bites that are all too common cholangitis (PSC), have a 90% chance of hear from the managers of the bill, I among today’s athletes. Instead, he surviving more than one year if they am certain. There are two sets of man- would praise the blocking efforts of receive a liver transplant. Unfortu- agers, as a matter of fact. This is a bill fullback Matt Suhey or his offensive nately, the need for donations greatly that combines the District of Columbia

VerDate 29-OCT-99 01:17 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.050 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13623 appropriations bill and the Labor- tion yesterday. I expect to be starting more counterproductive than to send a Health and Human Services bill. I am those discussions in our office in the bill down that we know is going to be here today as chairman to urge Mem- Capitol with representatives of the vetoed. bers of the Senate to vote favorably for President within just a few moments, Why is it going to be vetoed? It is this bill and to send it to the and we are very hopeful we can come going to be vetoed because we violate President. together and bring to the Senate and the very contract that we all signed 1 The big bill in this conference report to the Congress a solution to the dif- year ago, a contract that Republicans before us, the Labor-Health and Human ferences between us and get this final and Democrats hailed at the time as a Services bill, is the 13th appropriations series of bills completed. major departure when it comes to edu- bill. With the adoption of this con- There are five bills that have not cation. We recognized that, in as con- ference report, we will have sent all 13 been signed: State-Justice-Commerce sequential a way as we know how to bills to the President. If one considers was vetoed, and that is being reviewed make at the Federal level, we are going the timeframe of this Congress, with by the group I just mentioned, along to reduce class size, just as we said we the time we spent on the impeachment with the foreign assistance bill; the In- were going to hire more policemen process and then the delays that came terior bill is in conference and should with the COPS Program a couple years our way because of the various emer- be ready to send to the President before. We committed to hiring 100,000 gencies that have taken our attention, today, I hope; the D.C. bill is here, and new teachers and ensuring that across particularly in the appropriations proc- it should be available to us. this country the message is: We hear ess this year—Kosovo, the devastating The impact of what I am saying is, I you. We are going to reduce class size hurricanes, and the disaster in the think it is possible, if the Congress has and make quality education the pri- farm area—one will understand why we the will to come together now and to ority on both sides of the aisle, Repub- are this late in the day considering the work with the President’s people who licans and Democrats. 13th bill. have indicated their desire to finish I think both parties took out ads This bill has had some problems be- this appropriations process, that we right afterward saying what a major cause of our overall budget control can finish our business and complete achievement it was. We were all ex- mechanisms. We have been limited in our work by a week from tomorrow. cited about the fact that we did this for terms of the money available. We have That will take a substantial amount of our kids, for education, and what a de- stayed within those limits. We have understanding on the part of everyone. parture it represented from past prac- forward funded some of the items so I am hopeful from what we are hear- tice. We did that 1 year ago. they will be charged against future ing now that some of the rhetoric will Here we are now with the very ques- years. But those are items that pri- subside and we will have positive tion: Should we extend what we hailed marily would be spent in those years. thinking about how to complete our last year to be the kind of achievement We have had a real commitment on a work. But I do urge approval of this that it was? A couple of days ago, a re- bipartisan basis not to invade the So- conference report. port came out which indicated that in cial Security surplus. As we look into The PRESIDING OFFICER. The mi- those school districts where additional the future with the retirement of an nority leader. teachers had been hired, there was a enormous generation, the baby boom Mr. DASCHLE. Mr. President, I will clear and very extraordinary develop- generation, there is no question that use leader time to say a few words ment: Class sizes were smaller, quality Social Security surplus must be sound, about this bill and where we are. education was up, teachers were being and we are doing our best to make sure Mr. President, there is no one for hired, and this program was working. that is the case. whom I have greater respect for than We had it in black and white—given to We have had a series of issues before the distinguished senior Senator from every Senator—it is working. us. We have had some disagreements Alaska. But I must say, I question why So why now, with that clear evi- with the President. In this bill, we try we are here today voting on a bill that dence, with the bipartisan under- to work out those differences. We have we know will be vetoed. If we are going standing that we had just a year ago provided moneys for our children, for to try to retain the positive environ- that we were going to make this com- the Boys and Girls Clubs; we have pro- ment to which the senior Senator has mitment all the way through to the vided for law enforcement officers to just alluded, I do not understand how it end, hiring 100,000 new teachers, why have safe, bulletproof vests. With so is positive to send a bill down to the now that would even be on the table is many things going on in terms of chil- President that we know will be vetoed, something I do not understand. Twen- dren and education, we tried to meet which will then require us to go right ty-nine thousand teachers could be the President more than halfway on his back to the negotiating table where we fired. requests for education. were yesterday. I do not understand But it is as a result of the fact that The bill would probably be signed but that. our Republican colleagues continue to for the differences between the admin- I think a far better course is to de- refuse to extend and maintain the kind istration and the Congress over how to feat this bill, go back downstairs, nego- of program we all hailed last year that handle the funding. We have included, tiate seriously with the White House, we are here with a threat of a veto. as a matter of fact, against my best and come together with Democrats to I do not care whether it is this week, wishes, an across-the-board cut. That assure that we can pass a bill over- next week, if we are into December, if is primarily because only the adminis- whelmingly. it is the day before Christmas, if that tration can identify some of the areas I do not recall whether I have ever issue has not been resolved satisfac- we can reduce safely without harming voted against an Education appropria- torily, we are not going to leave. We the programs, and I am confident when tions bill. This may be unprecedented can talk all we want to about a posi- we come to what we call the final pe- for many of us on this side of the aisle. tive environment, but we are not going riod to devise a bill, we will work out As I understand it, the distinguished to have a positive environment condu- with the administration some offsets ranking member of the subcommittee cive to resolving this matter until that that will take care of the bill. I am on Health and Human Services is going issue is resolved satisfactorily. hopeful we will have no across-the- to vote against this bill. I am going to So there isn’t much positive one can board cut, but if it comes, it will not be join him, and I am going to join with say about our dilemma on that issue. as large as the one in this bill right most Democrats, if not all Democrats, Another big dilemma is the extraor- now. in our unanimous opposition to what dinary impact delaying funding will I am urging Members of the Senate the bill represents. That is unprece- have on the NIH. Sixty percent of the to vote for this bill. I do believe we can dented. research grant portfolio will be delayed be assured, and I was assured yester- We should not have to be here doing until the last 2 days of this fiscal day, that the bill will be vetoed. There this today. If we are serious about year—60 percent. Eight thousand new is no question about that. But also, we doing something positive and bringing research grants will be delayed and had probably the most productive and this whole effort to closure, I cannot grantees will be denied the opportunity positive meeting with the administra- imagine we could be doing anything to compete—8,000 grantees. This is

VerDate 29-OCT-99 01:17 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.006 pfrm01 PsN: S02PT1 S13624 CONGRESSIONAL RECORD — SENATE November 2, 1999 probably going to have as Earth shak- When we talk about the 1 percent decade. He is nodding yes. When he was ing an impact on NIH as anything since across-the-board cut, frankly, that is chairman and I was ranking, and now NIH was created. something I do not like. But when you that I am chairman and he is ranking, I do not know of anything that could take a look at the increases which are we have worked together. I can under- have a more chilling effect on the way in this bill, they remain largely intact, stand the difficulties of parties, Demo- we provide funding for grants through notwithstanding the fact that there crats and Republicans. I know he is NIH than what this budget proposes. will be a 1-percent cut. deeply troubled by the 1-percent We have heard from the institutions For example, on Head Start, at $5.2 across-the-board cut; so am I. We tried that conduct life-saving research. They billion, it has an increase of some $608.5 to find offsets and we tried mightily to say you can’t stop and start research million. The 1-percent across-the-board avoid touching Social Security, with- programs without irretrievable loss. cut will leave, instead of a $608.5 mil- out a 1-percent across-the-board cut. I will bet you every Senator has been lion increase, a $570.9 million increase. It had been my hope that on my as- contacted by NIH expressing their con- You will find that throughout the bill. surances to my colleague from Iowa we cern and the concern of these research- When the last Senator who spoke could have stayed together on this. I ers about the devastating impact this made a reference to the difficulties of can understand if it is a matter of is going to have. the National Institutes of Health in Democrats and Republicans and he But it is not just the NIH. The cut stopping and starting, I point out that does not see his way clear to do that at across the board alone will have a it has been the initiative of our sub- this time. I say to him, whatever way major impact. Five thousand fewer committee, significantly a Republican he votes—and he smiles and laughs— children are going to receive Head initiative, to increase NIH, which has my full effort will be to avoid a 1-per- Start services; and 2,800 fewer children had the full concurrence of the distin- cent across-the-board cut so we can are going to receive child care assist- guished Senator from Iowa, Mr. HAR- come out with the bill he and I crafted, ance; 120,000 kids will be denied edu- KIN, representing the Democrats. But 3 the subcommittee accepted, the full cational services. years ago, we sought an increase of al- committee accepted, and the full Sen- This cut across the board has nothing most $1 billion, an increase of some ate accepted, which is a very good bill. to do with ridding ourselves of waste. $900 million, after the conference. Last In order to advance to the next stage, This goes to the muscle and the bone of year, we increased NIH funding by $2 it is going to be a party-line vote, programs that are very profoundly af- billion. This year, the Senate bill had something I do not like in the Senate. fecting our research, our education, $2 billion, and on the initiative of Con- But I urge my colleagues to support our opportunities for safe neighbor- gressman PORTER in the House, a Re- the bill so we can move to the next hoods, and the COPS Program. The publican, we increased it an additional stage. array of things that will happen if this $300 million. The ranking Democrat Mr. HARKIN addressed the Chair. cut is enacted will be devastating. would not even attend the conference The PRESIDING OFFICER. The Sen- So I am hopeful that we will get seri- we had. ator from Iowa is recognized. ous and get real about creating the So it does not ring with validity for Mr. HARKIN. Mr. President, as I positive environment that will allow us those on the other side of the aisle to understand it, I have 5 minutes. to resolve these matters. We have to point to the National Institutes of resolve the class size issue. We have to Health and say this conference report, The PRESIDING OFFICER. That is resolve the matter of offsets in a way this Republican conference report, is correct. that we can feel good about. doing damage to NIH. The fact is, it is Mr. HARKIN. Mr. President, I want I am hoping we are going to do it this side of the aisle that has taken the to follow up with my colleague and sooner rather than later—but we are lead. Again, I include my colleague, friend from Pennsylvania. He is abso- going to do it. It is the choice of our Senator HARKIN, who has been my full lutely right; we have had a great work- colleagues. We will do it later, but we partner. But the lead has been taken ing relationship for a long time. He has will all have to wait until those who on this side of the aisle for the NIH. been open with me, as has his staff. We continue to insist on this approach un- Now, this bill has, for these three De- have had a great working relationship, derstand that it will never happen; the partments, in discretionary spending, and I think that proved itself in the vetoes will keep coming; the opposition $93.7 billion, which is an increase of $6 bill we brought to the Senate floor. We will be as strong and as united a week billion over last year. We have $600 mil- had a great bill on the Senate floor. We or 2 weeks from now as it is today. lion more than the President on these had a strong, bipartisan vote, 75–23. It That is why I feel so strongly about the very vital social programs. When it doesn’t get much more bipartisan than need to oppose this conference report. comes to education, this bill has $300 that around here. It was about half and Let’s go back downstairs and do it million more than the President. We half, Democrats and Republicans, vot- right. have provided very substantial funding. ing for it. So it was a good bill, a I yield the floor. There is a disagreement between this strong bill. The PRESIDING OFFICER. The Sen- bill and what the President wants on Now, my friend from Pennsylvania, ator from Texas. class size reduction. The President has for whom I have the highest respect Mrs. HUTCHISON. Mr. President, as I established a priority of class size re- and affinity, is right; there are a lot of understand it, the Senator from Penn- duction and wants it his way, and his good things in this bill. It reminds me sylvania has 5 minutes and I have 5 way exactly. But we have added a $1.2 of sitting down at a dinner and you minutes. billion increase in this budget and we have a smorgasbord of prime rib, Is that correct? have done so listing the President’s steaks, lamb chops, pasta, and all this The PRESIDING OFFICER. That is priority first; that is, to cut class size. wonderful meal spread out, and you correct. We say, if the local school districts can sample each one, but you have to Mrs. HUTCHISON. Mr. President, I don’t agree that class size is their No. take a poison pill with it. Is that really yield to the Senator from Pennsyl- 1 priority, they can use it on teacher worth eating? That is the problem with vania. competency, or they can use it for this bill. There are good things in it; I The PRESIDING OFFICER. The Sen- local discretion, but they don’t have an admit that to my friend from Pennsyl- ator from Pennsylvania. absolute straitjacket. I believe that is vania. But this 1-percent across-the- Mr. SPECTER. Mr. President, I the solvent principle of federalism. board mindless cut that was added thank my distinguished colleague from Why say to the local school boards later on—I know not with the support Texas for yielding to me. across America they have to have it for of either one of us on the Senate side— It is my hope that the Senate will class size if they don’t have that prob- is a poison pill. Then they tried to say support this conference report. I am lem and they want to use it for some- this is 1 percent and you can take it saddened to hear the arguments from thing else in education? from waste, fraud, and abuse, or any- the other side of the aisle which have Now, Senator HARKIN and I—and I see thing like that. But when you looked turned this matter pretty much into a my distinguished colleague on the at the fine print, it was 1 percent from partisan debate. floor—have had a full partnership for a every program, project, and activity;

VerDate 29-OCT-99 01:55 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.009 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13625 every line item had to be cut by 1 believe that is the way to go. I notice the sun goes down, and we will be back percent. that Congressman PORTER, the chair- tomorrow to talk about the next That means in a lot of health pro- man of the House subcommittee, was version of the Labor-HHS bill. grams, labor programs, and in some quoted just this morning as saying he Senator DASCHLE is correct. This is a education programs, with that 1-per- favors making room for needed spend- colossal waste of time. We should be cent cut, we are actually below what ing on discretionary programs by some negotiating a bill that can be signed in- we spent last year—not a reduction in type of a cigarette tax. stead of posturing ourselves. But if we the increase. We are actually below He said that with ‘‘the revenue gen- are to address a posture, let’s look at what we were last year. erated by such a proposal we could get this bill and the posture it takes on I ask unanimous consent to have rid of all of the accounting gimmicks one agency. That agency is the Na- that table printed in the RECORD. such as the delayed obligations at tional Institutes of Health. There being no objection, the table NIH.’’ Let me tell you that if for no other was ordered to be printed in the I want to say something else about reason, every Member of the Senate RECORD, as follows: that. There is no one who has been a should vote against this bill because of stronger supporter of NIH than Senator the decision of the budget ‘‘smooths’’ SAMPLE OF PROGRAMS CUT BELOW A HARD FREEZE SPECTER has been through all of this. to change the way that we fund the UNDER CONFERENCE AGREEMENT 1 Again, we had a good bill. We had agency that pays for medical research [Compares Labor-HHS items from fiscal year 1999 level to fiscal year 2000 some delayed obligations at NIH. But in the United States of America. level, total cut in millions] we had an amount that they could live Look at the way this bill would fund Program Amount with. Now, we are up to an amount of the National Institutes of Health. His- about $7 billion, if I am not mistaken, torically, the blue lines represent more DEPARTMENT OF LABOR in delayed obligations at NIH. I believe Adult Job Training ...... $7.38 or less even-line spending throughout Youth Job Training ...... 10.01 that is going to cause them some dis- the year, month after month, by the Youth Opportunity Grants ...... 2.5 tinct hardships. We have to get those Comm. Service Jobs for Seniors ...... 4.4 National Institutes of Health on med- delayed obligations back down to the ical research, on cancer, on heart dis- DEPARTMENT OF HEALTH AND HUMAN SERVICES area we had when we had the bill on Family Planning ...... 2.14 ease, on diabetes, and on arthritis. CDC AIDS Prevention ...... 1.34 the Senate floor. That is the way it should be. It is ordi- CDC Epidemic Services ...... 0.85 I compliment Senator SPECTER for nary business, steady as you go. Re- Substance Abuse Block Grant ...... 15.34 doing a great job. He is a wonderful Medicare Contractors ...... 33.52 searchers know the money will be Child Welfare/Child Abuse ...... 2.82 friend of mine, and he has done a great there and that they are going to be DEPARTMENT OF EDUCATION job of leadership on this bill. It is too able to use their best skills to find Goals 2000 ...... 4.91 bad that other authorities someplace cures for the diseases that afflict Teacher Training (Eisenhower) ...... 3.35 decided to put in a poison pill. But, Literacy ...... 0.65 Americans and people around the hopefully, after this is over, we can world. But some member of the Budget 1 Includes 1 percent across-the-board cut. work together, we can get it out, and Committee, or the Appropriations we can have a bill that is close to the Mr. HARKIN. When you look at this Committee, has said: Let’s play a little table, you can see why it is such a poi- one that we passed on the floor. The PRESIDING OFFICER. The Sen- game here. Let’s take 40 percent of all son pill. I am greatly troubled by the the money for the NIH and give it to vote coming up. I have been on this ator from Illinois. Mr. DURBIN. Mr. President, how them in the last 2 days of the fiscal committee and the subcommittee now much time remains on each side? year. Let them sit for 11 months, 3 since 1985. I have been privileged to The PRESIDING OFFICER. At this weeks, and 5 days without the money, chair it and then to be the ranking time, under the previous order, the and then dump it on them in the last member with Senator SPECTER as Senator from Illinois has 5 minutes, few days so that 40 percent of the chairman. To my best recollection I the Senator from New Jersey has 5 money and 60 percent of the grants will have never voted against a Labor-HHS minutes, and the Senator from Texas be funded at the tail end. appropriations bill—not once —when has 5 minutes. The red line indicates what would Republicans were in charge and then Mr. DURBIN. Thank you, Mr. Presi- happen if this Republican proposal when Democrats were in charge be- dent. went through. This is irresponsible. If cause we have always worked out a I urge my colleagues to vote against we are going to play games with the reasonable compromise. Well, this will this bill. This is nominally the District budget, let’s not do it with the Na- mark the first time that I will have to of Columbia appropriations bill. But tional Institutes of Health. vote against it. I don’t do so with glee. D.C. is such a small part of it. It is a I will concede, as Senator SPECTER I don’t do so as some kind of a pound flea on the back of a big rogue ele- said earlier, both he and Senator HAR- on the table, saying this is the worst phant. KIN, as well as Congressman PORTER thing in the world. With that poison We are happy the District of Colum- from my State, have done yeomen duty pill in there, we just can’t eat it. I bia appropriations bill has reached a in increasing the money available to don’t think a lot of people can. point where it should be passed and the National Institutes of Health over This is cutting Social Security, vet- signed by the President, and the Dis- the years. I have always supported erans’ health care, Meals on Wheels, trict of Columbia can go on about the that. I will tell you why. community health centers, afterschool business of managing itself. But, unfor- Each Member of the Senate can tell a programs, and education. Well, we all tunately, leaders in Congress have de- story of someone bringing a child af- want to protect Social Security. Let’s cided to take this relatively non- flicted by a deadly disease into their do it the right way. I believe we are controversial bill and add to it this be- office and begging them as a Member of going to have to sit down with the hemoth of a Labor-HHS appropriations the Senate to do everything they can White House. I want to make sure Sen- bill. to help the National Institutes of ator SPECTER, Senator STEVENS, and I I am going to vote against this bill. Health. It is heartbreaking to face are there at the table talking about As many others on the Democratic these families. It is heartbreaking, I this because I believe there is a way side, it marks probably one of the few am sure, to sit on the subcommittee out of this. times in my career that I have opposed and consider the scores of people who We have a scoring from the CBO that the bill by which we fund the Depart- come in asking for help at the National if we have a look-back penalty on to- ment of Labor, the Department of Institutes of Health. But each of us in bacco companies for their failure to re- Health and Human Services, and the our own way gives them our word that duce teen smoking, we can raise the Department of Education. But I think we will do everything in our power to necessary budget authority and out- those who look closely at this bill will help medical research in America so lays needed to meet what we have in understand there is good reason to vote that the mothers and fathers and hus- our Labor-HHS bill without this mind- against it. bands and wives sitting in hospital less 1-percent across-the-board cut, Mark my word; this bill that may waiting rooms around America praying without dipping into Social Security. I pass today is going to be vetoed before to God that some scientist is going to

VerDate 29-OCT-99 01:17 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.010 pfrm01 PsN: S02PT1 S13626 CONGRESSIONAL RECORD — SENATE November 2, 1999 come up with a cure will get every that we haven’t adequately funded in promise of a year ago in making sure helping hand possible from Capitol the first place? that happens. Hill. This bill breaks that promise. I talked about the particular problem The bill will be vetoed; it will be an This bill plays politics with the Na- for Minnesota. When we have these item of contention. The Democrats tional Institutes of Health. kinds of cuts in these block grant and stand firm. We want to make sure This bill, if for no other reason, social service programs, they are those children get the best education should be voted down by the Senate to passed on to the community level. The possible. We are a partner in making send a message to this conference and States are not involved. It is going to that happen. every subsequent conference that if take us a year and a half to two years I yield the floor. you are going to find a way out of this to provide any of this funding at the IMPACT AID REAUTHORIZATION morass, don’t play politics with the State level, if we are ever going to be Mr. INHOFE. Mr. President, I rise National Institutes of Health. able to do so. today with several of my fellow Sen- A few weeks ago, I had the sad re- I say to my colleagues, what about ators to bring an important matter to sponsibility of working with a family compassion? What about programs that the attention of our colleagues in the in the closing days of the life of their are so important to the neediest peo- Senate. I refer to the disproportionate tiny little boy who had a life-threat- ple, to the most vulnerable citizens, to allocation of Federal impact aid fund- ening genetic disorder called Pompey’s children, to the elderly? What are we ing to local school districts across the disease. He never made it to a clinical doing cutting these programs? country. trial because we could never bring to- I wish Senator GRAHAM was here as As you know, this program is a suc- gether the NIH and the university to do well because we restored that 30 per- cessful example of the role Federal something to try to help him. But I did cent funding on the floor of the Senate, funding can play in education. This my best, as I am sure every Member of including community mental health program succeeds in placing Federal the Senate would. services. All of it has been taken out in education dollars directly in the hands A mother came to see me last year conference committee, at least what of local educators, rather than federal with a child with epileptic seizures we were able to add as an increase. bureaucrats. that were occurring sometimes every 2 I think that is cruel, shortsighted, State income taxes and local prop- minutes. Imagine what her life was unfair, and I don’t think it is the Sen- erty taxes are often the primary fund- like and the life of her family. ate at its best. ing sources for public school systems. Each and every one of them said to I yield the floor. However, military families pay income me: Senator, can you do something to The PRESIDING OFFICER. The Sen- taxes to their ‘‘State of residence,’’ help us with medical research? I gave ator from Washington. which may or may not be the same as them my word that I would, as each of Mrs. MURRAY. Mr. President, I join the State in which their children are us does. my colleague on this side in urging a attending pubic schools. In addition, Let’s make sure this bill today draws ‘‘no’’ vote on this bill, simply because, military families living on base or a line in the sand and says to future as Senator WELLSTONE just stated, of American Indians living on trust lands conference committees that we hold our compassion for the thousands of or reservations don’t pay property the National Institutes of Health sa- women who will not receive services— taxes. Public schools are still required cred, and we will not allow political victims of domestic violence who won’t to provide these students a quality games to be played with their budget. have housing or counseling or health education. Who pays to educate these I yield the floor. for their young children; the thousands children? The PRESIDING OFFICER. The Sen- of people who have diabetes or cancer Mr. President, Impact Aid fills this ator from Minnesota. who will not see the result of research gap left when traditional revenue Mr. WELLSTONE. Mr. President, I done at NIH because of a 1-percent sources are inhibited by the presence of ask unanimous consent that the time across-the-board cut; and, the thou- the Federal Government. This program allotted to Senator LAUTENBERG of 5 sands of women and children who de- is widely supported by my colleagues. minutes be equally divided between pend on Head Start, who depend on our In fact, it’s a program which contin- Senator MURRAY and myself. education programs, on the social serv- ually receives annual increases in ap- The PRESIDING OFFICER. Without ices that are out there so that those propriation levels. One would think if objection, it is so ordered. young families can grow and be respon- more money is flowing into the pro- Mr. WELLSTONE. Mr. President, I sible and contribute back to our econ- gram then all States are fairly receiv- echo the words of my colleagues, Sen- omy as strong families in the future. A ing increases in the annual funding lev- ator HARKIN from Iowa, and Senator 1-percent cut doesn’t take into account els. Unfortunately, this is not the case. DURBIN from Illinois. the humanity behind the numbers in There is a formula used to determine I came here with Senator GRAHAM of this bill. the amount of funding distributed to Florida when we had this bill on the Finally, on the topic of class size re- each locally impacted school district. floor. We talked about the 50-percent duction, and why this side is so ada- While clearly some states are more cut in title XX block grant social serv- mant about it, a block grant cannot heavily impacted than others, this for- ices. That does not sound like much, guarantee that one child will get a bet- mula disproportionately favors certain but let me translate that into human ter education. Because of the bipar- states and their districts, at the ex- terms. tisan work we did last year, today 1.7 pense of others equally impacted and We talked about the need to have an million children are getting a better deserving. Hundreds of school districts adequate amount of funding for com- education in a smaller class size that across the United States are scraping munity mental health services, and the guarantees they will have the ability for the dollars necessary to educate our number of people who do not get any to read, write, and perform the skills children. And they are doing it on less care whatsoever. How are we going to they need to do in order to compete in and less money every year. deal with people during an extreme our complex world. If we continue this States, local school districts, and mental illness and help children when program, there will be millions more parents are the primary resource to we don’t provide the funding? It is un- who are able to learn to read, write, educate our children for the future. I conscionable. and do better in school. would like to inquire of the chairman We talked about the cuts in con- This is a partnership we have with of Health, Education, Labor, and Pen- gregate dining for elderly people, and our States and our local school dis- sions his intentions with respect to ad- we talked about cuts for Meals on tricts. Our responsibility is to help dressing the formula disparities. Wheels for elderly people who can’t get them do what they need to do; to pro- Mr. CAMPBELL. Mr. President, I ap- dining. We haven’t even fully funded vide help where help is needed. There preciate my good friend from Okla- that program. Now we are talking has been a call for reducing class size homa bringing this to our attention. I about cuts in that program. from across this country, because peo- have long been a supporter of Impact What are we about, if we are going to ple know what works. The Congress Aid, and I can speak to this issue from make cuts in these kinds of programs should be a partner and continue our personal experience. For 20 years, my

VerDate 29-OCT-99 03:00 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.013 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13627 wife Linda taught at a school in south- better meeting this objective. I wel- the table that meets our commitment. west Colorado which is dependent upon come the recommendations of all Mem- Once the President vetoes this bill, the program, so I know firsthand its bers and look forward to further dis- then we can get back to the business of vital importance. In fact, more than 24 cussions regarding the problem which making the hard choices. Cutting million acres of land in Colorado are my colleague from Oklahoma wishes to spending is never easy or popular, but federally owned lands. Impact Aid address. it is necessary if we are to keep our eases the burden on surrounding school Mr. KENNEDY. Mr. President, I ap- promises. districts with a smaller tax base be- preciate the comments from my col- I oppose spending the Social Security cause of these Federal lands, ensuring leagues, and I thank them for bringing trust funds because I believe that when a high-quality education for all stu- this matter to my attention. I will we voted years ago to take the Social dents. work with Chairman JEFFORDS during Security trust fund off-budget, we did My home State of Colorado has lost the reauthorization of the Elementary so in an effort to impose fiscal dis- 16 percent in funding since this pro- and Secondary Education Act to ensure cipline on ourselves. Although it has gram was reauthorized in 1994. As the that the Impact Aid Program ade- taken years to get to a point where we Impact Aid reauthorization is consid- quately addresses the needs of students didn’t have to rely on Social Security ered early next year, I look forward to in federally impacted school districts, surpluses to pay our bills, we are now a fair and honest evaluation of the and that funding is directed to the dis- at that point, and we’ve promised the funding formula. tricts with the most need, and is dis- American people that we will refrain Mr. COCHRAN. Mr. President, I tributed in an equitable manner. I look from using Social Security and Medi- thank the Senator from Oklahoma for forward to working with Senator JEF- care taxes to fund other government bringing the problem of Impact Aid FORDS, Senator INHOFE, and other col- programs. I support the promise be- fund distribution to the attention of leagues to address these issues fairly. cause it helps strengthen our spine to the Senate. Mr. INHOFE. Mr. President, I thank cut unnecessary spending. But In my State, the Impact Aid pay- my friends from Vermont, Massachu- strengthening Social Security and ments to schools is a relatively small setts, Mississippi, Colorado, and Okla- Medicare for the long term will take sum, about $300,000. So, it is especially homa for their interest in the reau- more than just placing the trust funds important that those funds are distrib- thorization of Impact Aid and how it ‘‘off limits.’’ uted in an accurate and timely man- affects our States and most impor- Mr. President, we have once again ner. I hope that in our consideration of tantly our children. I look forward to limped pathetically to the end of the reauthorizing the elementary and sec- working together to protect all im- appropriations process, past the dead- ondary education programs, that Im- pacted students. line and over the budget. The mere fact Mr. ROBB. Mr. President, I had pact Aid is given careful review. I will that we have to do an across-the-board hoped that this year, we could have a work to be of assistance in this effort. cut is a testament to the failure of this reasonable and orderly appropriations Again, I thank my friend from Okla- budget process. If we have to choose be- process, where we would make the homa for his leadership on this issue. tween thoughtful budgeting and hon- tough decisions that are required to And, I thank the chairman of the oring a commitment, I will vote to live within our means. I had hoped that Health, Education, Labor, and Pen- honor the commitment. But that we could prioritize our spending, in- sions Committee, the Senator from shouldn’t be the choice. creasing funding for defense to I will vote for this bill, knowing that Vermont, for his willingness to address strengthen our nation’s readiness, in- it will be vetoed, to send a strong and the issue. vesting in school improvements, devot- Mr. NICKLES. I appreciate my col- clear message: government should not ing needed funds to science and basic spend more than it takes in. leagues Senator JEFFORDS and Senator research, enhancing our transportation Mr. LEAHY. Mr. President, this KENNEDY working to remedy this situa- system, and reducing our seemingly in- morning I voted against the Conference tion. As my colleagues know, Okla- exhaustible demand for pork-barrel Report for the Labor-HHS-Education- homa has historically come out on the projects. DC Appropriations bill. I am extremely short end of the funding stick in terms Instead, we are now at the end of the disappointed with the budgetary stale- of Impact Aid distribution formulas. appropriations process and we are fac- mate that this Congress seems to have Oklahoma has a very large number of ing the prospect of spending even more reached. This Congress is yet to do impacted districts and this funding is than we have taken in—despite the fact much work that we should be proud of so crucial for them. However, since the that revenues exceeded estimates and and more than a month into the new last authorization of Impact Aid, Okla- an on-budget surplus was available to fiscal year, we have failed to even com- homa has lost 29 percent in Impact Aid us. At this point we face a Hobson’s plete our appropriations work. funding. choice. In order to fulfill a commit- I want to mention just a few of the I encourage my colleagues to con- ment to protect the Social Security problems I had with this Conference tinue to work, as they have been, to surplus that both political parties Report. First, this Report made signifi- address this inequity to ensure that all made to the American people we have cant reductions to essential programs States are served by the Impact Aid to vote for a process that is abhorrent funded through the Education Depart- Program. to any concept of responsible budgeting ment. For example, the proposal before Mr. JEFFORDS. Mr. President, I ap- and legislating. In order to fund un- us provided no funding for a class size preciate the Senator from Oklahoma’s wanted and unneeded legislative pork reduction program that this Congress bringing this matter to my attention. we’re taking money from every legiti- supported just last year. Vermont is a The Committee on Health, Education, mate program we’ve already funded— state that generally enjoys small class Labor, and Pensions is currently pre- including crucial defense spending and sizes for our students. But even paring legislation to reauthorize pro- reducing class size. Vermont, a rural state with fairly grams included in the elementary and Rather than making the hard choices small student to teacher ratios bene- Secondary Education Act. The reau- throughout the process, and foregoing fits, from the President’s visionary thorization process offers an oppor- popular parochial spending that is not program to put more teachers into our tunity for congress to review the oper- critical to our nation’s needs, we are class rooms. ations of these programs and to make forced to make an across-the-board cut Second, this Conference Report made appropriate modifications. During the in order to meet our commitment. This unacceptable cuts to programs funded last reauthorization of ESEA in 1994, is not the responsible way to govern. In through the Department of Health and we revised the Impact Aid Program in fact, it’s indefensible. We haven’t done Human Services. For example, this bill a way intended to target resources to our job, Mr. President. We’re playing cuts $44 million in requests from the districts based on their relative need in rhetorical games and posturing artifi- Centers for Disease Control to immu- terms of serving federally connected cially in order to keep this little secret nize over 333,000 children against child- children. I believe that is the right di- from the American people. hood diseases. rection to take and am open to consid- I will vote for this bill very reluc- In addition to these programmatic ering any proposal which assists us in tantly because it’s the only measure on cuts, the Conference Report contained

VerDate 29-OCT-99 03:00 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.055 pfrm01 PsN: S02PT1 S13628 CONGRESSIONAL RECORD — SENATE November 2, 1999 budget gimmicks including the use of can’t even do one of our most impor- transplant system more fair. Its goal the Social Security Trust Fund and an tant jobs—appropriating responsibly. was to ensure that the allocation of across the board cut in spending that Mr. President, the Labor-HHS-Edu- scarce organs is based on medical cri- reflects Congress’ inability to budget cation-DC Appropriations Conference teria determined by physicians, and responsibly. I understand the President Report that this Senate passed this not on geography. But a rider to the made it very clear that he will veto morning is just another example of 1998 omnibus spending bill delayed im- this Report when it gets to his desk. In where this Congress has failed. I look plementation of the regulations for a spite of this knowledge, my colleagues forward to the day when we can return year—and required the Institute of on the other side felt it was a produc- to a time when we act responsibly and Medicine (IOM) to study the impact of tive use of our time to none the less do the work the American people ex- the Final Rule. move forward with an unacceptable pect of us. Whereas I opposed the moratorium bill, rather than attempt to negotiate Mr. SANTORUM. Mr. President, I that Congress passed just over one year and reach a compromise. rise today to urge my colleagues and ago because I was convinced that the The conference report included a .97 the American people to carefully con- HHS rule was in the best interest of pa- percent across the board, government- sider one of the most pressing public tients, many of my colleagues ignored wide cut in all discretionary programs. health issues which faces America, an previous studies by the Office of the In- This included the funding for programs issue about which far too few people spector General and the General Ac- such as education and crime preven- are aware and which is ever so ob- counting Office, among others, and tion—two essential programs for ensur- liquely tucked into the many pages of were swayed by the rhetoric of this ing the safety of our youth. The Office the appropriations measure we are very emotional debate when they sup- of Management and Budget has esti- about to consider. ported this one-year moratorium. Pro- mated some of the effects of this type This issue has to do with the work- ponents of the moratorium then argued of across the board cut. For example, ings of our national organ transplan- that we did not have sufficient evi- approximately 71,000 fewer women, in- tation and allocation system and by dence to conclude that the current sys- fants, and children would benefit from extension the lives of hundreds of tem has inequities. So innocent trans- the important Special Supplemental Americans whose lives hang in the bal- plant candidates had to wait at least Nutrition Program for Women, Infants, ance. another year for a sensible policy of and Children, also known as the WIC Ideally, our national organ trans- broader organ sharing. program. An across the board cut of plantation and allocation system— Yet, ironically, some of my col- this nature would also mean 1.3 million which at its core is about saving lives— leagues’ action of endorsing a morato- fewer Meals on Wheels will be delivered would be governed according to stand- rium reflected a bit of wisdom. If not to the elderly. ard medical criteria whereby donated for the provision in the Omnibus Ap- Americans have witnessed over the organs go to those who need them propriations bill of 1998 which called on past several weeks an enormous most. Sadly, though, this is not the the IOM to study these issues, we amount of finger pointing from both case. Our current organ allocation sys- would not have such clear evidence in sides of the aisle about who’s using the tem has evolved into a needlessly con- support of the rule, evidence that is Social Security surplus and who’s not. tentious debate where fragile life-and- void of partisan or special interest I don’t think there’s much to dispute. death decisions are being reduced to input. By its very nature, the IOM was According to the non-partisan Congres- economic—and many times geo- able to distance itself from the pro- sional Budget Office, even with the so- graphic—factors. nouncements of those with vested in- called across the board cuts, the Re- If you are an American citizen who terests and to undertake an academic, publican proposed spending plan will needs a liver transplant to survive, and evidence-based review of the issues. To still mean taking $17 billion from the you reside in Arizona, California, Colo- question the integrity of the report is Social Security Trust Fund. rado, Connecticut, Illinois, Massachu- to question the integrity of the Insti- Let’s step back and look at the mes- setts, Maryland, Michigan, New York tute of Medicine, of our nation’s great- sage that we have sent to Americans or Pennsylvania, you have much less est minds, and of the scientific process by agreeing to this Conference Report chance of receiving a transplant than itself. and sending it to the President. We someone else with a similar level of ill- As charged by Congress, the IOM re- have made a statement that we are not ness who lives in another part of the leased its report on June 20, 1999. And interested in placing our students into country. That is the conclusion of the the results were a vindication for pa- smaller class sizes even though re- latest patient outcome data from the tients everywhere and irrefutably search has shown they will learn faster U.S. Department of Health and Human argue for pressing forward with the with less discipline problems and will Services (HHS). HHS Final Rule with its call for broad- have higher high school graduation Despite enhanced capacities to keep er organ sharing. The IOM report has rates. We have said that we are not in- organs viable for longer periods of time five noteworthy highlights. terested in ensuring the health of our and to make them available to those The first is waiting times. The IOM children by providing immunizations who would benefit most, many regional concludes that waiting time for liver that are known to prevent severe ill- transplant centers are still attempting transplantation is an issue only for the ness and even death form numerous to keep donated organs in their own ge- most critically ill patients. For pa- childhood diseases. Finally, we have ographic area. These ‘‘organ hoarding’’ tients who are less acutely ill, waiting said that we are not concerned about policies and practices contribute to the time is not an appropriate criterion in the nutrition of our women and chil- deaths of thousands of Americans deciding about the allocation of donor dren nor are we interested in the nutri- whose lives could otherwise be saved. organs. The IOM suggests that equi- tion of our homebound elderly. Consider: While an estimated 62,000 table access to transplantation would What kind of priorities does this Con- potential recipients are waiting their be best facilitated by development of a gress have? Looking at this Conference turn to receive organs, only 20,000 system with objective criteria that re- Report and at our work over the past transplants take place in a given year. flect medical need. few months, it’s hard for me to tell. We More than 4,000 Americans die each The second is larger Organ Alloca- have failed on many fronts to do the year—at least 11 per day—while await- tion Areas. The HHS Final Rule places work the people of this country have ing organ transplants. Of those, it is priority on sharing organs as broadly sent us here to do. We haven’t passed a estimated that 1,000 Americans—more as possible, within limits dictated by comprehensive Patients’ Bill of Rights. than 3 each day—might have been science and technology. The IOM re- We have not passed responsible gun saved if the system operated more fair- port concurs with this approach, and control legislation. Just last week we ly. specifically recommends establishing were reminded that we have failed to Last year, HHS issued new regula- Organ Allocation Areas (OAAs) for liv- pass comprehensive medical privacy tions designed to reduce these inequi- ers. The IOM suggests that OAAs serv- legislation, leaving the Administration ties. The 1998 Final Rule contained pro- ing at least nine million people each to do our work for us. And now, we visions to make the national organ would significantly promote equity in

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.035 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13629 access to transplantation, and be fea- conclusions of the IOM study. In late The HHS regulations for broader sible with current technology. October of this year, HHS released a re- organ sharing have been the subject of The third is federal oversight. The vised Final Rule, incorporating infor- rigorous debate in Congress, within the IOM report recommends that HHS con- mation and suggestions from the IOM transplant community, and on the tinue to exercise the legitimate over- and from the transplant community. pages and airwaves of the local and na- sight responsibilities assigned to it by This revised Final Rule is the culmina- tional media. While constructive dis- the National Organ Transplant Act. tion of the IOM study, four Congres- course is the root of our democracy, The report further notes that strong sional hearings, public hearings and what has concerned me over the past federal oversight is necessary and ap- consultations conducted by HHS, and couple of years is that deceit and fear propriate to manage the system of nearly five years of public comment. have characterized this particular de- organ procurement and transplan- Today, proponents of the status-quo bate. Even for those who are extremely tation most effectively in the public system of rank inequities have man- close to these issues, it has become interest. The report also recommends aged to include in this bill language more and more difficult to distinguish the establishment of an Independent which calls for yet another morato- the true facts. Indeed, this is the very Scientific Review Board to assist the rium. They now say that any new regu- reason that Congress stipulated the In- Secretary in these efforts. lations must be developed only after stitute of Medicine study this issue. The fourth is data collection and dis- the National Organ Transplantation My greatest concern is for the lives semination. The IOM report finds that Act (NOTA) is reauthorized. This is an of worthy, innocent transplant can- current data are inadequate to monitor interesting change of argumentation didates which hang in the balance each some aspects of the organ transplan- now that the facts, as contained in the day, each hour, each minute that we tation program. They suggest that the IOM report and other publications, delay moving forward with these regu- Organ Procurement and Transplan- have been publicized about how the lations. Please make every consider- tation Network contractor should im- current system in fact does not operate ation to expedite the process so that prove data collection, and make stand- in the public’s interest. the transplant community can move ardized and useful data available to Whereas I certainly look forward to forward to improve the system so that independent investigators and sci- working with my colleagues to reau- more lives can be saved. entific reviewers in a timely fashion. thorize NOTA, and most especially to As my colleagues may know, the fed- The fifth is effects on organ donation eral Task Force on Organ Transplan- and small transplantation centers. The the opportunity to develop a clear mandate and strategies for increasing tation (formed in 1986), in a critical de- IOM was also asked to consider wheth- cision, established that donated organs er the requirements in the Final Rule organ donation, plans for future NOTA reauthorization should not be used as belong to the community, and it iden- would decrease organ donation, or tified that community as a national cause harm to small organ transplan- an excuse to perpetuate the current in- equitable system which the Final Rule one. Consistent with this decision, the tation centers. It found no evidence to new HHS regulations identify donated seeks to remedy. Additionally, the cur- suggest that either of these concerns organs as a precious national, not local rent NOTA statute does provide the would be realized. The IOM concurs or regional, resource—thus helping to Secretary with the necessary authority that changes in the organ transplan- elicit what James Childress, a medical to immediately address the needs of tation system—along the lines pro- ethicist who served on the transplant those who are dying every day because posed by the Secretary—would improve task force, calls ‘‘communal altruism’’ of inequities in the system. fair access to lifesaving transplan- or public commitment to organ dona- tation services. Currently, NOTA mandates that HHS and the transplant community share tion. Childress, an authority on the Mr. President, 20 years ago retaining subject of organ donation, states in a responsibility to govern the organ local allocation of organs was a sen- 1989 edition of the Journal of Health transplantation and allocation system. sible policy because organ viability— Politics, Policy and Law, ‘‘Donations The he underlying principle on which the window of opportunity during of organs cannot be expected unless Congress enacted NOTA back in 1984 to which an organ can be successfully there is public confidence in the justice better coordinate the use of donated transplanted—was not very long. But of the system of organ distribution.’’ over the past two decades, the sci- organs and to address the concern that In order to maintain an effective sys- entific knowledge and techniques for the sickest patients receive priority for tem for the allocation of life-saving or- the retrieval, preservation and trans- organ transplantation. As a result of gans, we must first ensure that we have plantation of donated organs have im- this law, the Organ Procurement and an adequate supply of those organs. An proved tremendously and have led to Transplantation Network (OPTN) was adequate supply relies on public gen- the development of organ transplan- established. As you know, the OPTN’s erosity and commitment, which, in tation as a means to save lives. These membership is comprised of organ pro- turn, relies on the public perception recent advances in science and tech- curement organizations and hospitals that the system for organ allocation is nology now permit broader sharing of with transplant facilities. The primary both publicly accountable and fair. organs, with more focus on medical ne- function of the OPTN is to maintain The HHS regulations have prompted cessity and less restriction by geog- both a national computerized list of pa- debate in large part because they raphy as criteria for organ allocation. tients waiting for transplantation and would change the allocation system And yet, despite these enhanced capac- a 24-hour-a-day computerized organ from a local/regional one to one of ities to keep organs viable for longer placement center, which matches do- broader organ sharing. They would al- periods of time and to make them nors and recipients. Currently, the locate organs to the most medically ur- available to patients in parts of the United Network for Organ Sharing gent patients first, rather than to country far from where those organs (UNOS), a private entity, holds the fed- those residing in the same geographic first may have been retrieved, many eral contract for the OPTN and estab- area as where the organ was donated. small regional transplant centers in- lishes organ allocation policy. And I emphasize, that while the HHS credibly still fight to keep donated or- I would like to assure my colleagues regulations call for a national system, gans in their own geographic area. that under the revised Final Rule, de- they do not call for a national alloca- The Final Rule reflects ongoing com- velopment of the medical and alloca- tion system. They leave the specific mitment by the Secretary of Health tion policies of the OPTN remain the policy decisions in the hands of the and Human Services (HHS), which I responsibility of transplant profes- transplant community. share with many of my colleagues on sionals, in cooperation with the cen- I have registered as an organ donor; both sides of the aisle, to maintain the ters, patients and donor families rep- when I die, I do not care whether or not most equitable and advanced trans- resented on the OPTN board. Most im- my organs go to a resident of Pitts- plantation system and to reform the portantly, in the revised Final Rule, burgh; I hope they go to the person who anachronistic allocation system which HHS provides for the public account- needs them the most. The majority of is needlessly costing lives. ability that is necessary for a national Americans share my sentiments. Ac- The basic principles that underlie the program on which so many lives de- cording to the results of a Gallup pub- 1998 Final Rule were supported by the pend. lic opinion survey released this past

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.036 pfrm01 PsN: S02PT1 S13630 CONGRESSIONAL RECORD — SENATE November 2, 1999 June, most Americans—83 percent— tient of blood type ‘‘O’’ would have a authorization should not be used as an want donated organs to go to the sick- median waiting time of 721 days in excuse for delay while innocent Ameri- est patients first, regardless of where western Pennsylvania and just 46 days cans are needlessly dying. Further they live. in Iowa. delay prevents more needy transplant Not only do the HHS guidelines meet As we can see from the facts under candidates from receiving vital, life- standards of effectiveness, in part, by the current allocation system, often a saving organs. helping to ensure broad public commit- critically ill patient in one region can Now, I realize that this body will ment to organ donation, they also go without a life-saving organ while a likely adopt this conference report, de- meet the related standard of equity. By healthier patient in another region— spite its containing this controversial creating a process designed to lead to a one with a larger supply of organs—can language for another moratorium. But broader geographic sharing of organs, be treated as a priority. let us bear in mind that the President these proposed regulations equalize In meeting this standard of equity, has vowed to veto this legislation over waiting times among transplant cen- the HHS regulations can help to pre- this issue and other spending priorities ters, thus also—and effectively—save vent what has become an alarming and contained herein. more lives. CONSAD Research Corpora- extremely parochial trend—that of Thus, it is not too late. When our tion has already identified a number of states passing ‘‘local first’’ laws or res- leaders reconvene to negotiate budget alternative policies that would equal- olutions. Kentucky, Louisiana, Okla- priorities with the administration, I ize waiting times and save more lives. homa, South Carolina, Wisconsin, Ari- urge my colleagues to oppose another The HHS regulations further require zona and Texas have either passed laws moratorium, and join me in ending a standardized medical criteria to be or resolutions or have proposed such system that unfairly deprives patients used when placing patients on the na- laws that strive to keep organs in their of access to life-saving organ trans- tional waiting list and determining respective states, while not necessarily plantation, and allow the regulations their priority among all patients need- allocating these organs to state resi- to go forward. This is an issue which ing organ transplants throughout the dents. transcends politics. United States. They therefore call for This is a critical distinction: Pa- ∑ Mr. McCAIN. Mr. President, I regret equitable organ allocation throughout tients often travel from other states that I was unable to be here for the the country to ensure that the most for the high-quality care offered by vote but I thank the conferees for their medically urgent patients, within rea- large transplant centers, which gen- hard work on the conference report sonable medical parameters, have first erate considerable revenue. When that provides federal funding for the access to organs. states seek to retain organs in this District of Columbia, the Departments We know that there currently exists manner, they are serving economic of Labor, Health and Human Services enormous disparity in waiting times self-interest, not patient interest. And (HHS), and Education. I am very dis- for organ transplantation from region what of the patients who reside in appointed that this report includes to region in the United States. states with no liver or heart transplant wasteful, locality-specific, pork-barrel Mr. President, I ask unanimous con- program? These patients, including projects, legislative riders, and budget sent that the chart of recently released those with Medicaid and Medicare, gimmicks such as ‘‘forward funding’’ HHS data be printed in the RECORD. must travel to other states, where the and a 1-percent cut in government The PRESIDING OFFICER. Without access to organs and the waiting times spending across-the-board. Therefore, I objection, it is so ordered. can vary significantly. cannot support this bill. There being no objection, the mate- The new HHS guidelines would better This legislation is intended to pro- rial was ordered to be printed in the meet procedural and substantive stand- vide funding directly benefiting Amer- RECORD, as follows: ards of justice than does current pol- ican families and senior citizens while icy. They would encourage more public assisting our most important resource, COMPARISON OF PERCENTAGE OF PATIENTS WHO RECEIVE participation in the policy making our children. It provides funding to LIVER TRANSPLANTS WITHIN ONE YEAR process and, therefore, more account- help states and local communities edu- [All numbers are percentage] ability, and they would equalize the cate our children. It also provides the treatment of medically similar cases. funds to support our scientists in find- Below national median National Above national median median In developing policies for the life- ing treatments for illness. This report University Medical Center, 47 St. Luke’s Episcopal, Houston, and-death issue of organ allocation, we also provides funds for ensuring our na- Tucson, Arizona—42. Texas—66. should rise to broadly accepted stand- tion’s most vulnerable—our children, Stanford University, Palo Alto, 47 Latter Day Saints Hospital, California—29. Salt Lake City, Utah—58. ards of justice rather than acquiesce to seniors and disabled have access to University Hospital, Denver, 47 St. Louis University, St. Louis, narrowly defined regional interests. quality health care. Furthermore, it Colorado—38. Missouri—56. Yale Hospital, New Haven, 47 Jackson Memorial, Miami, Arthur L. Caplan of the University of provides the monetary support for im- Connecticut—23. Florida—67. Pennsylvania Center for Bioethics and portant programs assisting older Amer- University of Illinois, Chicago, 47 Froedtert Memorial, Mil- Illinois—23. waukee, Wisconsin—83. Peter Ubel of the Philadelphia Vet- icans including Meals on Wheels and Indiana University, Indianap- 47 Jewish Hospital, Louisville, erans Affairs Medical Center wrote in senior day care programs. olis, Indiana—37. Kentucky—75. Massachusetts General, Bos- 47 Rochester Methodist, Roch- The New England Journal of Medicare I am pleased that this legislation ton, Massachusetts—29. ester, Minnesota—68. on Oct. 29, 1998, ‘‘We believe that the took an important step towards ensur- Johns Hopkins, Baltimore, 47 Vanderbilt University, Nash- Maryland—23. ville, Tennessee—73. United States should end policies that ing that our nation’s schools have the University of Michigan, Ann 47 Fairview University, Min- permit geographic inequities and move flexibility to determine how to meet Arbor, Michigan—24. neapolis, Minnesota—63. North Carolina University, 47 Medical University, Charleston, quickly to determine the best use of the unique educational needs of their Chapel Hill, North Caro- South Carolina—61. data on the efficacy of outcomes to cre- students instead of Washington bureau- lina—39. Thomas Jefferson, Philadel- 47 Ohio State, Columbus, Ohio— ate a more equitable national system crats mandating a ‘‘one size fits all’’ phia, Pennsylvania—28. 55. of distribution.’’ policy. Second, this bill provides a sig- New York University, New York, 47 University Hospital, Newark, New York—40. New Jersey—80. Because I believe that any organ al- nificant increase in funding for the Na- location system should be defined by, tional Institutes of Health (NIH) which Source: U.S. Department of Health and Human Services, 1999. and accommodate, the moral principles is critical in our ongoing battle against Mr. SANTORUM. Mr. President, of effectiveness and equity, I strongly disease. these disparities were first brought support the proposed change to a na- These are just some of the important into sharp focus in the 1997 Report of tional allocation system as outlined in provisions in this conference report. the OPTN: Waiting List Activity and the Department of Health and Human There are many additional items which Donor Procurement, and now even Services revised regulation. I firmly are as pertinent to our nation’s well- more so in this recently released HHS believe that the Secretary needs to ex- being which makes it all the more frus- data. Why the median liver transplan- ercise her authority so that a more eq- trating that this bill is still laden with tation rate during one year for ‘‘listed’’ uitable system based on uniform med- earmarks, legislative riders and un- candidates in Chicago would be 23% ical criteria can immediately move for- justifiable budget gimmicks. and 83% in Milwaukee is unconscion- ward. Again, I will repeat for my col- First, this legislation contains $388 able. Equally disturbing is that a pa- leagues that plans for future NOTA re- million in total pork-barrel spending

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.037 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13631 ($335 million in earmarks and set- stead of shoring up Social Security and they have the responsibility to make asides for the Departments of Health Medicare, paying down the debt, and the right decisions. and Human Services, and Education). providing tax relief, the appropriators We are going to keep our promise to Some of the more egregious violations have opted to include a 1-percent cut in keep social security intact. We are of the appropriate budgetary review government spending across-the-board going to do it in a responsible way so process include: to keep Congress from touching Social they can take cuts in travel budgets, $2.5 million for Alaska Works in Fair- Security. Why not just cut the pork- they can take cuts in their bureauc- banks, Alaska for construction job barrel spending in the first place to racies to make sure the programs are training; avoid resorting to such gimmicks? funded at the increased levels that $1.5 million for the University of Mis- Mr. President, because of the egre- Congress is requiring them to do. souri-St. Louis for their Regional Cen- gious amount of pork-barrel spending This is the most responsible act Con- ter for Education and Work; in this bill, the addition of legislative gress has taken. I am stunned the other $104 million for the construction and riders, and the 1-percent across-the- side will not step up to the plate and do renovation of specific health care and board spending cut, I must oppose its what they promised also; that is, keep other facilities including: Brookfield passage. I regret doing so because of Social Security intact. Zoo/Loyola University School of Medi- the many important and worthy pro- I yield my remaining time to Senator cine, University of Montana Institute grams included in the conference DOMENICI. for Environmental and Health Sciences agreement, but I cannot endorse the Mr. DOMENICI. Mr. President, I will and Edward Health Services, continued waste of taxpayer dollars on not repeat what has been stated, other Naperville, Illinois; and special interest programs, nor can I ac- than generally to say most of the so- $3,000,000 to continue the Diabetes quiesce in bypassing the normal au- cial programs in this bill, from Meals Lower Extremity Amputation Preven- thorizing process for legislative initia- on Wheels to student aid to everything tion (LEAP) programs at the Univer- tives. If an Omnibus appropriations bill else in between, even after the .97-per- sity of South Alabama. cent cut, are substantially higher than While these projects may have good is required in order to complete the ap- last year and, in almost every instance, reason to be deserving of funding, it is propriations process for fiscal year higher than what the President of the appalling that these funds are specifi- 2000, I hope that the Congress finds the United States asked for in his budget. cally earmarked and not subject to the courage to remove the many earmarks, If doing that amounts to cutting a appropriate competitive grant process. the budget gimmicks, and the legisla- program, then, frankly, I don’t under- I am confident that there are many or- tive riders contained in this report, the stand what it means to increase a pro- ganizations which need financial as- bill, and all others so that we can pro- gram and increase them as dramati- sistance and yet, are not fortunate vide the much needed financial support enough to have an advocate in the ap- for job training, education, health care, cally as we have in this bill. The best propriations process to ensure that research and senior programs and avoid friend the National Institutes of Health their funding is earmarked in this leg- a congressional sequester. has ever had is a Republican Congress. islation. This is wrong and does a dis- The full list of the objectionable pro- We are increasing National Institutes service to all Americans who deserve visions is on my Senate website.∑ of Health because people such as fair access to job training and quality Mrs. HUTCHISON. Mr. President, I CONNIE MACK and a few others have health care. have heard the most amazing rhetoric said double it in the next 5 years. In Some of the legislative riders include on the other side. I am told by my col- this bill, we had in NIH $2.3 billion $3.5 million in this report to implement league from Minnesota we have cut all more than the President; with the the Early Detection, Diagnosis, and the increases the Senate put in this across-the-board cut, we are $2 billion Interventions for Newborns and Infants bill. What is wrong is the facts. We in appropriations more than the Presi- with Hearing Loss Act. This legislative haven’t cut the increases. In fact, we dent. initiative was inserted into the Senate haven’t cut them out at all. We have Essentially, there has been a lot of and House appropriation bill without increased in the areas where we have talk about saving Social Security, and hearings or debate on this proposal by prioritized. we have used some OMB scoring where either chamber. I applaud the inten- Education: $2 billion more than in we think it is appropriate. There are tions of this measure and share my col- last year’s budget. What does a 1-per- those who still come to the floor and leagues’ support for helping ensure cent cut across-the-board mean? It act as if they actually know we have that all hospitals, not just the current means $1.8 billion more than we spent infringed on the Social Security sur- 20%, provide screening in order to last year. plus. Let me repeat for the Senate, in produce early diagnosis and interven- NIH: We are committed to giving NIH March, April, or May of next year, I tion for our children to ensure that double the funding for medical re- predict with almost absolute certainty they have an equal start in life and search in this country. We are keeping that a budget comes out close to this learning. However, the manner in our promise. We are increasing NIH $1.8 budget produced by Senator STEVENS which it was included in this measure billion over last year. and the appropriations bill and will not bypasses the appropriate legislative Head Start: We increased it $600 mil- take any money out of Social Security. procedure. Instead, this measure lion. A 1-percent cut means we are in- They can argue that the President’s should have been given full consider- creasing it $594 million. numbers wouldn’t have taken any ation by the Senate as a free-standing We are keeping a promise. We have out—CBO’s numbers might. But essen- initiative or as an amendment to ap- said the most important thing we are tially, when the bell tolls and we do propriate legislation. going to do in this Congress is keep our the reevaluation, we are going to be Furthermore, I am also opposed to Social Security surplus intact. We are able to say to the senior citizens we the use of budget gimmicks in this re- doing it by making sure we do not go didn’t touch Social Security. The .97 is port. First, the report has opted to use into that surplus. We are making a 1- important to that solution. the newly popular budget gimmick of percent across-the-board cut in in- Mrs. HUTCHISON. I ask for the yeas ‘‘forward funding,’’ used to postpone creases because we have given so much and nays. spending until the next fiscal year to more than we did last year. The PRESIDING OFFICER. Is there a avoid counting costs in the current fis- Let me talk about what happens in a sufficient second? cal year. What this means is that $10 1-percent decrease. Any person who has There is a sufficient second. billion in funding for job training, ever run a corporation or an agency or The yeas and nays were ordered. health research, and education grants even an office knows a 1-percent cut The PRESIDING OFFICER. The to states is pushed into next year—a does not go in the programs. We are question is on agreeing to the con- budgetary sleight of hand that merely not going to lose teachers. We are not ference report. The yeas and nays have delays the inevitable accounting for going to lose people who are getting been ordered. The clerk will call the these tax dollars. What a sham. veteran benefits. They are going to cut roll. Finally, now that the surplus has travel budgets, office supplies; they The legislative assistant called the been spent for pork-barrel spending in- will cut in the bureaucracy; that is, if roll.

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.057 pfrm01 PsN: S02PT1 S13632 CONGRESSIONAL RECORD — SENATE November 2, 1999 Mr. NICKLES. I announce that the Connie Mack, Paul Coverdell, Phil trade relevant amendments must be Senator from Arizona (Mr. MCCAIN) Gramm, R. F. Bennett, and Richard G. filed by 2:30 today. and the Senator from New Hampshire Lugar. I urge all Senators to offer and de- (Mr. GREGG) are necessarily absent. The PRESIDING OFFICER. The bate their amendments in a timely The result was announced—yeas 49, question is, Is it the sense of the Sen- fashion. I request relevant amendments nays 48, as follows: ate that debate on the substitute not be abused so we can complete this [Rollcall Vote No. 343 Leg.] amendment No. 2325 to Calendar No. very important trade legislation. I yield the floor. YEAS—49 215, H.R. 434, an act to authorize a new trade and investment policy for sub-Sa- The PRESIDING OFFICER (Mr. Allard Gorton Nickles ENZI). The Chair recognizes the Sen- Bennett Gramm Robb hara Africa, shall be brought to a Bond Grams Roberts close? ator from Delaware. Brownback Grassley Roth The yeas and nays are required under Mr. ROTH. Mr. President, I thank my Bunning Hagel Sessions colleagues on both sides of the aisle for Burns Hatch Shelby the rule. The clerk will call the roll. their support for the cloture motion. Byrd Helms Smith (NH) The vote reflects the strong bipartisan Campbell Hutchinson Smith (OR) The legislative clerk called the roll. Cochran Hutchison Snowe Mr. NICKLES. I announce that the support for the bill. Collins Inhofe Specter I also want to extend my thanks to Senator from Arizona (Mr. MCCAIN) Coverdell Jeffords Stevens the distinguished majority and minor- and the Senator from New Hampshire Craig Kyl Thomas ity leaders, who worked so hard to find Crapo Lott Thompson (Mr. GREGG) are necessarily absent. the compromise that would allow the DeWine Lugar Thurmond The yeas and nays resulted—yeas 74, Domenici Mack Warner bill to move forward. Enzi McConnell nays 23, as follows: Due to their hard work, we have the Frist Murkowski [Rollcall Vote No. 344 Leg.] opportunity to send a clear statement NAYS—48 YEAS—74 to our neighbors in the Caribbean, Cen- Abraham Edwards Levin Abraham Fitzgerald Lugar tral America, and Africa that we are Akaka Feingold Lieberman Akaka Frist Mack willing to invest in a long-term eco- Ashcroft Feinstein Lincoln Allard Gorton McConnell nomic relationship—a relationship of Baucus Fitzgerald Mikulski Ashcroft Graham Mikulski Bayh Graham Moynihan Baucus Gramm Moynihan partners in a common endeavor of ex- Biden Harkin Murray Bayh Grams Murkowski panding trade, enhancing economic Bingaman Hollings Reed Bennett Grassley Murray growth, and improving living stand- Boxer Inouye Reid Biden Hagel Nickles ards. Breaux Johnson Rockefeller Bingaman Harkin Robb Bryan Kennedy Santorum Bond Hatch Roberts Most importantly, this bill will also Cleland Kerrey Sarbanes Breaux Hutchinson Rockefeller send a clear signal to our trading part- Conrad Kerry Schumer Brownback Hutchison Roth ners around the world who will join us Daschle Kohl Torricelli Bryan Inhofe Santorum shortly in Seattle for the ministerial Dodd Landrieu Voinovich Burns Jeffords Schumer Dorgan Lautenberg Wellstone Cochran Johnson Sessions meeting of the World Trade Organiza- Durbin Leahy Wyden Coverdell Kerrey Shelby tion. It signals that the United States Craig Kerry Smith (OR) is prepared to engage constructively in NOT VOTING—2 Crapo Kohl Specter the wider world around us and to pro- Gregg McCain Daschle Kyl Stevens DeWine Landrieu Thomas vide the leadership necessary to The conference report was agreed to. Dodd Lautenberg Thompson achieve our common goals. Mrs. HUTCHISON. I move to recon- Domenici Leahy Voinovich Most importantly, the bill means we sider the vote. Durbin Lieberman Warner will fulfill our commitment to the Enzi Lincoln Wyden Mr. CRAIG. I move to lay that mo- Feinstein Lott American workers and firms that will tion on the table. benefit from this bill—a commitment NAYS—23 The motion to lay on the table was that means $8.8 billion in new sales and agreed to. Boxer Edwards Reid an increase of 121,000 jobs over the Bunning Feingold Sarbanes f Byrd Helms Smith (NH) course of the next 5 years in the U.S. Campbell Hollings Snowe textile industry alone. AFRICAN GROWTH AND Cleland Inouye Thurmond As I have emphasized again and again OPPORTUNITY ACT—Resumed Collins Kennedy Torricelli in this debate, this is not a bill that is Conrad Levin Wellstone good just for our neighbors in the Car- Pending: Dorgan Reed Lott (for Roth/Moynihan) amendment No. ibbean and Central America or our NOT VOTING—2 2325, in the nature of a substitute. partners in Africa. This is a bill that is Lott amendment No. 2332 (to amendment Gregg McCain good for our workers here at home as No. 2325), of a perfecting nature. The PRESIDING OFFICER. On this well. It is a ‘‘win-win’’ situation eco- Lott amendment No. 2333 (to amendment vote, the yeas are 74, the nays are 23. nomically for American workers and No. 2332), of a perfecting nature. Three-fifths of the Senate duly chosen our friends abroad. Lott motion to commit with instructions I look forward to working with my (to amendment No. 2333), of a perfecting na- and sworn having voted in the affirma- tive, the motion is agreed to. colleagues over these coming hours to ture. fashion a still stronger bill that would Lott amendment No. 2334 (to the instruc- AMENDMENTS NOS. 2332 AND 2333 WITHDRAWN further those goals. tions of the motion to commit), of a per- Mr. LOTT. Mr. President, I ask con- fecting nature. Let me emphasize once more the sent that amendments 2332 and 2333 be strong bipartisan support reflected in CLOTURE MOTION withdrawn. the vote just taken. The motion for The PRESIDING OFFICER. Under The PRESIDING OFFICER. Without cloture carried by a vote of 74–23. I the previous order, the clerk will re- objection, it is so ordered. urge my colleagues to move as expedi- port the motion to invoke cloture. The amendments (Nos. 2332 and 2333) tiously as we can because time is lim- The legislative clerk read as follows: were withdrawn. ited. As we all know, the Congress is CLOTURE MOTION Mr. LOTT. Mr. President, I remind coming to the end of the current ses- We the undersigned Senators, in accord- the Senate pending is the trade bill sion and we want to make sure every- ance with the provisions of rule XXII of the with the substitute amendment pend- body has the opportunity to bring for- Standing Rules of the Senate, do hereby ing in the first degree. Cloture was in- ward their amendments. It is impor- move to bring to a close debate on the sub- voked; therefore, there is a total time tant we do so in a fashion to expedi- stitute amendment to Calendar No. 215, H.R. restriction of 30 hours, including tiously conclude action on this impor- 434, an act to authorize a new trade and in- quorum calls and rollcall votes. Under vestment policy for sub-Sahara Africa. tant piece of legislation. Trent Lott, Bill Roth, Mike DeWine, Rod an additional consent, relevant trade I yield the floor. Grams, Mitch McConnell, Judd Gregg, amendments are in order in addition to The PRESIDING OFFICER. The Larry E. Craig, Chuck Hagel, Chuck the germaneness requirement under Chair recognizes the Senator from New Grassley, Pete Domenici, Don Nickles, rule XXII. Those additional first-degree York.

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.035 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13633 Mr. MOYNIHAN. Mr. President, I or rather to send the resulting agree- Mr. ROTH. I would like to refer to wish to join most emphatically with ments to the Congress for expedited fast track. Like my colleague, I am my revered chairman in congratulating consideration. If he were to have had very unhappy that this authority has the Senate today, in thanking the ma- the sub-Saharan African legislation not been extended this President. jority and minority leaders. We have fail and the Caribbean initiative of Mr. MOYNIHAN. And, sir, that this risen to a moment which was omi- President Reagan fail; if we were to President did not ask for it when he nously in doubt. have, in effect, allowed the Trade Ex- could get it. Last week, as the week progressed, pansion Act of 1962, President Ken- Mr. ROTH. That is correct. That is two things took place: One, on the Sen- nedy’s measure that led to the Ken- correct. ate floor, as we now have established, nedy Round, like the Uruguay Round, we had 74 votes just to proceed with expire and say to the 200,000 American I also point out our committee in the the bill—we will have more when this families who are displaced by trade, as last 2 years reported this legislation is done. Even so, we found ourselves in others are, that we should let economic out because there is strong bipartisan a procedural tangle not unknown to forces work their way and tell them, support for fast track to be granted to the body which was thwarting the will that’s too bad; if we allowed the Gener- the President, this President, by both of an emphatic majority—and not just alized System of Preferences to expire Republicans and Democrats. a majority for this legislation but a and say, no matter, how would our rep- Mr. MOYNIHAN. Sure. majority for a tradition of openness in resentatives look? What would they Mr. ROTH. Unfortunately, there has trade that began 65 years ago with the say? What could they undertake? Very not been strong leadership from the Reciprocal Trade Agreements Act of little. White House on this matter. It seems 1934 at the depths of the Depression, It would be a moment in trade that to me it is a matter of grave concern. the aftermath of the Smoot-Hawley would be shameful, after 65 years of But since that has not happened, I do legislation, with our system of govern- bringing the world out of the depths of agree with what my colleague has just ment very much under challenge. That the Great Depression, now, in the long- said, that it is important we act on this challenge would grow more fierce and est economic expansion in the United legislation so it becomes clear to our would end in the great World War. States, the longest economic expansion friends and neighbors around the world We were then, even so, confident in history. that we continue to plan to provide enough of the promise of trade that we For so many years we talked about leadership in this most important area could go forward in this matter. We ‘‘the longest peacetime expansion.’’ No, of trade. have been going forward for 60 years. no, this expansion is greater even than Mr. MOYNIHAN. Yes, sir, and that it However, 5 years ago we stopped. The that from World War II. This is what becomes clear to our friends around the President did obtain the approval of trade has brought us. Not just trade, world, as you say, and our friends the Congress for the World Trade Orga- but without trade expansion we could downtown—give them heart; give them nization. I shouldn’t put it that the not have had this economic expansion. something to show. President ‘‘obtained’’ the approval of Now, at least, we can go to Seattle and the Congress; Congress approved what say: Here are our bona fides. We are Mr. ROTH. Absolutely. I applaud and Congress had sent our negotiators to still players. We still want to go for- congratulate the Senator from New obtain. There was a little side ripple ward. York for his leadership, not only dur- there. An international trade organiza- So, Mr. President, let the games ing the current session but down tion was to have been one of the main begin. We have a long debate before us. through the years in this most impor- institutions of the Bretton Woods sys- It will be a bipartisan debate. The Sen- tant trade policy. We look forward to tem created in 1944. The International ator from Delaware, the chairman of bringing home the bacon in the next 30 Bank for Reconstruction and Develop- our committee, will be leading the de- hours on this important piece of legis- ment—we call it the World Bank—the bate. His deputy, if I may so deputize lation. International Monetary Fund were cre- myself, will be at his side across the Mr. MOYNIHAN. I thank the chair- ated; the International Trade Organiza- aisle. Let us now proceed, being of good man. tion didn’t happen. heart and great expectations. The PRESIDING OFFICER. The Finally, we caught up with ourselves I yield the floor. Chair recognizes the senior Senator and we created the World Trade Orga- Mr. ROTH. Mr. President, I ask the from South Carolina. nization which I believe now has 134 distinguished Senator from New York The PRESIDING OFFICER. The members with 30 observers currently if he could articulate the importance of Chair recognizes the Senator from applying for membership. I said there the legislation before us. South Carolina. were two ominous, even menacing mo- Mr. MOYNIHAN. I certainly could at- Mr. HOLLINGS. Mr. President, the ments. The second was that there was tempt to do so. I would not risk over- distinguished managers of the bill of- almost no attention paid in the press statement. There would be a setting in fered the $8 billion figure in sales and and media to this week-long frus- which, having given the President ne- some 121,000 jobs. The truth is, we trating, seemingly unavailing effort. gotiating authority for a new round of know from the Labor Department sta- We have been on this a week and we international trade talks, having ar- tistics that we have lost 420,000 textile got nowhere. No one noticed. It is as if ranged for Trade Adjustment Assist- jobs nationwide and some 31,200 textile no one cared. ance to be continued as it has been for jobs in South Carolina alone. They said We woke up. Yesterday, the Wash- 37 years, we could say: The particular NAFTA was going to create 200,000 ington Post in a lead editorial on this matters before us will be part of the jobs. They claim today it is 121,000. In subject noted neither the administra- trade negotiations—and so forth. We Mexico itself, it was going to create tion nor the Congress had done any- could say we will get to it next year. thing they needed to do, and that at But we don’t have that negotiating 200,000 jobs. We know textiles alone the end of this month the World Trade authority. The President goes to Se- lost 420,000, and it is undisputed that Organization will meet in Seattle. Our attle emptyhanded. The only thing he 31,200 jobs were lost in the State of Ambassador, our Trade Representative, can bring with him is the trade legisla- South Carolina. Ambassador Barshefsky, will open the tion we have before us—which we still I ask unanimous consent to print two meeting. Our President will be there, have to take to the House. But this is articles with respect to the economy along with heads of state. We will be all the United States can show the and how it has worked in Mexico, one talking about the next round of global world, the world which has been fol- from the Wall Street Journal and the trade negotiations. They can take 9, 10 lowing us for all these years. other from the American Chamber of years. They are fundamentally impor- So I hope, at a very minimum, the Commerce in Mexico. tant. sense of tradition—even, if I may say, There being no objection, the articles But our President will not have the of honor—will drive us forward in this were ordered to be printed in the authority to enter these negotiations— matter. RECORD, as follows:

VerDate 29-OCT-99 03:13 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.020 pfrm01 PsN: S02PT1 S13634 CONGRESSIONAL RECORD — SENATE November 2, 1999 [From the Wall Street Journal, Sept. 27, kept a lid on competition and have struggled The result: Output has fallen and unemploy- 1999] to maintain their state-run social-welfare ment has soared. A DECADE OF CHANGE systems. A similar though less pressing dilemma Elsewhere, in Argentina, Brazil, Mexico (By Jonathan Friedland) faces Mexican President Ernesto Zedillo. In and other countries, the pattern has been March, he floated a plan to gradually pri- THE HAVE-NOTS: THE FREE-MARKET REVOLU- this: A handful of entrepreneurs, often with vatize the country’s electrical sector, argu- TION PROMISED SO MUCH; TO MANY IN LATIN close ties to their country’s political elite, ing that the government doesn’t have the re- AMERICA, IT HAS DELIVERED SO LITTLE have gotten richer. The middle class, never sources to invest the $25 billion needed over Texcalitla, Mexico.—Liberalization, pri- large to begin with and traditionally propped the next few years to increase the power sup- vatization, globalization. Mary Garcia may up by plentiful government jobs, urban food ply. While many Mexicans agree with the not be aware of them in so many words, but subsidies and trade barriers that kept ineffi- president’s basic point—that state funds she has felt their impact from behind the cient companies alive, has shrunk. And the ought to be spent on things like health and two-frame stove of her cinder-block cafe, the poor, whose safety net, never strong, has education rather than power plants—few Avenida Nacional. been strained by demands for fiscal austerity trust the private sector to do the job prop- Perched alongside the highway that was from the international financiers these coun- erly. once the main road between Mexico City and tries depend on, keep getting poorer. It isn’t hard to see why. Mexico’s privat- the resort city of Acapulco, Mrs. Garcia’s ‘‘In the 1990s, Latin American policy mak- ization binge has been plagued by costly restaurant used to serve dozens of plates of ers have put their emphasis on overall per- blunders that have many wondering whether rabbit stew to travelers daily. But early this formance, on making sure the macro- state finances are truly better off now, and decade, amid a severe downsizing of the economic indicators were lining up,’’ says whether the Mexican economy is truly more Mexican state, the government let private Gert Rosenthal, a Guatemalan economist. competitive than before, as the government contractors build a swift toll road between ‘‘But there is a growing consensus that contends. ‘‘It isn’t obvious to most Mexicans the two cities that bypassed the Avenida something is terribly wrong when you have that their lives have improved as a result of Nacional. this and 40% of your population is in worse these programs,’’ says Luis Rubio, a Mexico Mrs. Garcia has far fewer clients now- shape than before.’’ City development expert. adays. Not only that, but the taxes she pays The negative balance of the free-market The toll roads provide a case in point. With have gone up, in part because of the new experiment for many Latin Americans has the passage of the North American Free road. The Highway of the Sun, as it’s called, tipped the scales away from support for fur- Trade Agreement on the horizon and an ur- has been such a financial disaster that the ther reform. Leading presidential candidates gent need to upgrade Mexico’s crumbling government bought it back two years ago in Argentina, Chile and Mexico—three coun- road infrastructure to handle a surge in from the companies that built it. The same tries with elections over the next year—are trade, former President Carlos Salinas de thing happened with a dozen banks, a pair of all emphasizing the need to put people before Gortari embarked on a crash public-works airlines and 25 other highway projects. After markets. ‘‘There is a search for a kinder, program in which private construction com- botched privatizations, they are back in the gentler form of capitalism,’’ says Lacey Gal- panies built a network of pay-as-you-go hands of the government, and taxpayers are lagher, head of Latin American sovereign highways. But in the government’s rush to facing a bill that may total as much as $90 ratings at Standard & Poor’s Co. in New get the job done, unrealistic traffic and in- billion. York. ‘‘It is sad, but the reform process in a come projection’s were made, local banks ‘‘I am all for progress,’’ Mrs. Garcia says lot of countries is getting stuck because po- were muscled into coming up with the fi- wistfully, straightening up the place settings litical support for reforms has dwindled so nancing, and companies without the nec- in her empty restaurant. ‘‘But this kind of much.’’ essary management skills were signed up to progress is killing us.’’ No one thinks Latin America will return do the work. From Texcalitla, here in Mexico’s rural to the days of import substitution and un- ‘‘Although it had a private-sector com- Guerrero state, to Tierra del Fuego at the controllable deficit spending, or that social plexion, it was really an old-fashioned pub- southern tip of South America, there are a revolution is on the horizon. But observers lic-works program,’’ says William F. Foote, a lot of people who feel the same way. For like Ms. Gallagher worry that although they former banker who has studied Mexico’s toll- many Latin Americans, the free-market rev- have embarked on the free-market path, road blitz. ‘‘It was done without reference to olution that has swept the region in the past many Latin American economies aren’t yet the realities of the market.’’ decade hasn’t delivered the kind of progress flexible enough to adapt to change in the That quickly became clear. Projects were they were told it would—easier lives, better global economy. Nor can they deliver an im- plagued by cost overruns, and once the roads incomes and a more secure future. Instead, it proved standard of living to the majority of opened for business, neither truckers nor has confirmed many of their worst fears their citizens. ‘‘The first-stage reforms, travelers could afford the high tolls de- about capitalism. which most Latin American countries have manded. Since Chile embarked on its free-market already been through, worsen income dis- Within a few years, the government experiment in the late 1970s, widespread do- tribution, make economic cycles more pro- stepped in to take over many of the roads, mestic market liberalization, privatization found and raise unemployment,’’ she says. leaving the companies that built them to ac- of once-unwieldy state asset holdings and a ‘‘The payoff comes with the second-stage re- cept a more gradual return on their invest- removal of barriers to foreign competition forms.’’ ment. Those companies are, in several cases, have made Latin America a much healthier But those reforms, which include strength- still waiting to be fully reimbursed and place in purely macroeconomic terms. Gov- ening tax collections, making taxation fairer claim that their weak financial condition is ernment finances are in better shape than and labor laws more flexible, and stream- mainly due to their toll-road commitments. ever. Foreign direct investment is up, and in- lining institutions like courts and schools, Meanwhile, roads such as the Highway of the flation rates have fallen. And Latin Ameri- have run into public opposition mainly be- Sun remain glittering and desperately short cans have access to a wider variety of goods cause of the financial and social costs associ- on traffic. and services than ever before. ated with the first round of reforms. Politi- The fact that the road hasn’t delivered on But there has also been a big downside to cians generally realize these are the steps its promise isn’t lost on Graciela Martinez, the move from closed to open economies. they have to take, but in the fledgling demo- an elderly woman sitting under a tree near Buffeted by forces beyond their control— cratic environment in which they operate, one of its toll plazas. Mrs. Martinez, who such as the woes of other emerging markets consensus building is a painfully slow proc- sells iguanas for a living, stands up to show as far afield as Russia and Indonesia—Latin ess. off her product each time a vehicle slows to American economies have posted frustrat- In Argentina, for instance, President Car- pay the toll. There haven’t been any sales ingly inconsistent growth rates in recent los Menem has tried for several years to today, she says solemnly, because city peo- years. Job creation has actually slowed scrap the country’s antiquated labor laws, ple don’t appreciate a good lizard. while overall unemployment in the region but he can’t because still-powerful unions be- But, she jokes, the dearth of traffic does has remained stable, according to Inter- lieve the old rules are the only remaining have an upside. While it isn’t great for here American Development Bank statistics. safeguard for their workers. Lately, Mr. pocketbook, she says,’’ at least it’s easy on That means that more Latin Americans Menem hasn’t pushed the point because his my feet.’’ work in the informal economy than a decade Peronist party, built originally upon a base ago, and that income distribution, uneven to of fervent worker support, needs union back- [From the American Chamber of Commerce begin with, has generally grown more so. ing to prevail in presidential elections sched- of Mexico—Business Mexico, April 1997] In fact, from 1980 to 1996, the latest year uled for October. for which hard data are available, the trend Economists say the cost of the delay has WHAT’S WRONG WITH THIS PICTURE?: OPTI- has been for an ever greater percentage of been high. Argentina, which pegged its cur- MISTIC INVESTORS OVERLOOK MEXICO’S CON- national income to end up in ever fewer rency to the dollar earlier in the decade to SUMER SPENDING GAP hands in all Latin American countries except quash triple-digit inflation, has entered a BY NICHOLAS WILSON Costa Rica and Uruguay, says Elena Mar- nasty recession because of a big currency de- At first sight Mexico seems like an inves- tinez, regional director of the United Nations valuation by Brazil, its No. 1 trading part- tor’s dream: a country of 93 million people, Development Program. Unlike their bigger ner. With its inflexible labor laws, Argentina number 13 on the world list of natural wealth neighbors, Costa Rica and Uruguay have can’t reduce wages to remain competitive. per capita, recently opened virgin markets,

VerDate 29-OCT-99 03:13 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.044 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13635 and a government that is rapidly forging distance telecommunications market in senior Senator from New York, voted trade agreements in the Americas and Mexico is accounted for by businesses. Indi- with me on NAFTA and that is against aboard. Mexico, however, is also home to viduals only make international calls in ex- NAFTA. We had misgivings. Of course, grinding poverty, so just how big is its mar- treme emergencies,’’ says economist Patri- the proof is in the Wall Street Journal ket? The reality, according to economists, is cia Nelson. In reality the market is only that only between 10 percent and 20 percent about the top 15 percent of earners and busi- and the American Chamber of Com- of the population are really considered con- nesses, she says. merce articles about how they are sumers. The extreme unequal distribution of Export businesses account for nearly 25 making less down there 4 to 5 years wealth has created a distorted market, the percent of the gross domestic product (GDP), since the enactment of NAFTA. We economy is hamstrung by a work force with which in 1996 totaled US$326 billion. In 1980 were told it was going to create a posi- a poor level of education, and a sizable export businesses only accounted for 10 per- tive balance of trade. We had a $5 bil- chunk of the gross domestic product is de- cent of the GDP, says Gonzalez. At the same lion-plus balance of trade at the time time, the domestic demand per capita has voted to exports rather than production for of enactment. Now we have a $17 bil- domestic consumption. Furthermore, work- actually shrunk in the last 20 years, he says. er’s purchasing power, already low, was dev- Given the population’s low purchasing lion deficit in the balance of trade with astated by the December 1994 peso crash and power, production for the domestic market is Mexico since NAFTA. the severe recession that followed. Even op- minimal. Therefore, the proportion of GDP We were told it was going to solve timists do not expect wages in real terms to represented by the export sector is distorted, the immigration problem. It has wors- recover until the next century. ‘They say and is higher than in many developed coun- ened. We were told it was going to there are more than 90 million consumers in tries, says ING Barings economist Sergio solve the drug problem. It has wors- Mexico, but less than 20 percent earn more Martin. ened. As I said before, there is no edu- than 5,000 pesos (US$625) per month. The rest The average salary in Mexico is only US$3,720 a year. cation in the second kick of a mule. We of the population lives just above subsistence have been through this exercise about level,’’ says Pedro Javier Gonzalez, econo- It now takes a worker 23 hours to earn mist at the Mexican Institute of Political enough to purchase the goods included in the how we are all going to put our arms Studies. the figures make grim reading: the ‘‘basic basket,’’ the price of which has shot together and hug and love and help our National Statistics Institute (Instituto up 913 percent since 1987, compared to 8.3 neighbors. Fine with me if it really Nacional de Estadisticas, Geografia e hours 10 years ago, according to a report would work that way. It has not Informatica, INEGI) and the Banco de Mex- from the National Autonomous University of worked that way and is not about to ico estimate that nearly 68 million Mexicans Mexico (Universidad Nacional Autonoma de Mexico, UNAM). work that way in sub-Sahara and the live in poverty. About a million homes do Caribbean. I will get into those items SELECT FEW not have electricity and potable water, and in just a few minutes. adult illiteracy is 13 percent. According to Another distortion in Mexico’s market is UNICEF’s most recent report there are 9 mil- the eye-opening difference between the rich With respect to the morning article— lion Mexican children living in extreme pov- and poor. Writer Carlos Fuentes describes I try to get into the Wall Street Jour- erty (one third of Mexico’s population is Mexico as a country where 25 Mexicans earn nal because a lot of my crowd in South under 15 years old); 800,000 between the ages the same as 25 million Mexicans. In the last Carolina reads it. They have me as the of 6 and 14 years working in various produc- two years, the 15 wealthiest families’ for- old isolationist: Hollings: ‘‘Info revolu- tive sectors; and 60,000 ‘‘street kids,’’ a num- tunes leapt from the US$16.4 billion to tion escapes him.’’ ber that is increasing by 7 percent annually. US$25.6 billion, which is equivalent to 9 per- Really? I know a good bit more about The United Nations says poverty is most ex- cent of the GDP or 23.9 million annual min- the information revolution than the treme in the informal sectors of the world’s imum wages. Wall Street Journal does. I helped economies. The World Bank estimates 42 per- The result in economic terms is that cent of Mexico’s economic population is em- ‘‘there is a market for luxury Mercedes cars, bring a good bit of it to South Caro- ployed in the informal sector; the Finance yet little demand for reasonably priced shoes lina, in fact, with my technical train- Secretariat put the figure at 50 percent dur- (relative to a country with Mexico’s popu- ing for skills. I was in Dublin, Ireland, ing its recent clampdown on tax evaders. The lation),’’ says Gonzalez. There are nearly 100 and walked into the most modern informal economy includes street vendors as million Mexicans yet there are only 2 mil- microprocessing plants of Intel outside well as largely self-sufficient campesinos lion credit cards, adds Martin. ‘‘As some peo- of Dublin. My friend, Frank McKay, who ‘‘effectively neither buy from nor sell to ple have more than one it means that less was there. He said: Governor, I want to than 2 percent of Mexicans have credit cards the rest of the economy,’’ says Gonzalez. The show you your technical training pro- formal sector, however, is not exactly made and some of them have limits of 1,000 or 2,000 up of affluent consumers either. Sixty per- pesos (US$125 or 250).’’ gram. We sent two teams to Midlands cent of the registered work force earns be- Education, or the lack of it, has also Tech in Columbia, SC, and we repro- tween one and two minimum salaries per played a role in the steady widening of the duced what was there, and that is how day, according to a recent study by the gap between rich and poor since Carlos Sali- I got it up and going and operating and Worker’s University of Mexico (Universidad nas took office in 1988. Between 1987 and 1993, in the black. Obrera de Mexico). The minimum wage is urban workers with higher education saw I told this to Andy Grove when he currently worth about US$3.00 per day. their wages jump 100 percent, whereas poorly came by, and he thanked me again. I ‘‘Minimum wage guys don’t buy imports,’’ educated workers (50 percent of workers have only a primary school education) saw their know a little bit about the information says one analyst who preferred to remain revolution. I am all for it. My problem anonymous. wages climb only 10 percent. The rising poverty is a continual thorn in is, on the one hand, it does not create OVERLY OPTIMISTIC the government’s side. While its tough mac- the jobs they all advertise. Despite the poverty indicators, foreign in- roeconomic policies have drawn praises from The Wall Street Journal ran an arti- vestors often sound cheerful to the point of the international financial community, the cle about Wal-Mart and General Mo- being almost blase about the economic and benefits have not trickled down to the poor. social statistics. ‘‘NAFTA will connect the tors. Wal-Mart exceeded the number of ‘‘I don’t see the government doing anything employees of General Motors for the world’s largest market (the U.S.) to the to address the wealth imbalance,’’ Gonzalez world’s largest city (Mexico City) says David says. Many think the government had better first time. Dean, promoter of a superhighway to facili- get started, however, if it wants to make its I ask unanimous consent this article tate transport between the free trade agree- newly opened markets attractive to foreign be printed in the RECORD. ment’s member nations. Yet many of Mexico investors. Moreover, there may be social and There being no objection, the article City’s inhabitants don’t even have access to political consequences if only a handful of was ordered to be printed in the drainage, electricity or basic education. Mexicans continue to enjoy the fruit of the RECORD, as follows: ‘‘Mexico has a teledensity of 6–8 telephone economic reforms. ‘‘I think we’re living on [From the Wall Street Journal, Aug. 28, 1997] lines per one hundred people, compared to 60 borrowed time,’’ said U.S. Ambassador to LABOR: THE CHANGING LOT OF THE HOURLY per hundred in the U.S. There’s a lot of po- Mexico James Jones at the end of last year. WORKER tential in Mexico,’’ says recently arrived Bill ‘‘This generation of adults will probably sur- Ricke, Global One international tele- vive on hope but I think over the next five to For decades, the U.S. has been evolving communications consortium president. ten years if that isn’t translated into bene- from a manufacturing economy to a service The potential is here, economists agree, fits and real opportunities, you’re going to economy. But Labor Day 1997 marks a mile- but it is unlikely to be developed in the near have demagogues rise up who want to turn stone: Earlier this year. Wal-Mart Stores future with most of the population living in the clock back.’’ Inc., the discount retailer, passed General abject poverty. Telefonos de Mexico Motors Corp. as the nation’s largest private (Telmex) last year disconnected more cus- Mr. HOLLINGS. Mr. President, the employer. tomers for not paying their bills than it con- reason I included these articles is be- The shift is more than symbolic. Union nected. ‘‘Nearly all of the (US$4 billion) long cause my distinguished mentor, the jobs with lush pay and benefits, like those

VerDate 29-OCT-99 02:26 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.048 pfrm01 PsN: S02PT1 S13636 CONGRESSIONAL RECORD — SENATE November 2, 1999 held by GM assembly-line worker Tim The letter calls for a working group to be mation-technology (IT) revolution and the Philbriek, are disappearing. In their place established within the WTO to study core Internet age. That their pages are filled with are nonunion jobs like that of Nancy labor standards and trade, and marks the advertising from IT firms presumably has Handley, who works in the men’s department first time many of America’s biggest compa- nothing to do with it. Such firms account for at a Missouri Wal-Mart. nies have agreed to support U.S. moves link- a quarter of the total value of the S&P 500, Both punch a time clock, and share a stake ing trade liberalization with labor standards. and this week Dow Jones announced that in their employers’ success. The Wal-Mart ‘‘The U.S. government must further ensure Microsoft, Intel and SBC Communications workday is less physically taxing than GM’s, that any agreements enable the United will be included in its industrial average but the hours are longer and the pay barely States to maintain its own high standards from November 1st. Not before time, many supports even a thrifty family. Still, Wal- for the environment, labor, health and safe- say, for high-technology businesses now ac- Mart offers a measure of responsibility and ty,’’ the Oct. 25 letter said. count for a huge chunk of the economy. Ac- path of advancement to hourly workers, For years, Republican lawmakers, backed tually, they don’t. thousands of whom are promoted to manage- by big business, have resisted linking trade New figures published on October 28th by ment each year. expansion with labor and environmental America’s Department of Commerce appear Mr. HOLLINGS. Mr. President, I issues. While last week’s letter makes no to support the view that IT is very impor- want the Wall Street Journal to read mention of using trade sanctions against tant to the American economy. The depart- countries with poor labor standards, Thea ment now counts all business spending on its own articles. software as investment (previously, it was a The leading line: Lee, the AFL–CIO’s trade policy director, said that is labor’s ultimate goal. ‘‘What we cost). This has both increased the apparent For decades, the U.S. has been evolving want is the ability to use trade rules to pro- size of IT investment and boosted America’s from a manufacturing economy to a service tect worker rights,’’ Ms. Lee said. rate of growth in recent years. economy. But Labor Day 1997 marks a mile- While AFL–CIO leaders still plan to show But measuring the size of the ‘‘new’’ econ- stone: Earlier this year, Wal-Mart Stores, up in force in Seattle this month to protest omy is a statistical minefield. The most gen- Inc., the discount retailer, passed General WTO policies they see as antilabor, they also erous estimate comes from the OECD, which Motors Corporation as the nation’s largest said it’s important to get a seat at the table tracks the ‘‘knowledge-based economy’’. It private employer. so that union views can be represented. estimates that this accounts for 51% of total General Motors’ average hourly wage Whether the Clinton administration will business output in the developed econo- is about $19 an hour; including benefits, get the rest of the WTO to sign on to its mies—up from 45% in 1985. But this defini- it is $44 an hour. Whereas at Wal-Mart labor agenda for the Seattle meeting re- tion, which tries to capture all industries stores, the average hourly wage is $7.50; mains to be seen. Developing countries, in that are relatively intensive in their inputs particular, have fought linking trade and of technology and human capital, is implau- including benefits, $10. In manufac- sibly wide. As well as computers and turing, the salary is four times that in labor, and many of these countries see the establishment of a working group as the be- telecoms, it also includes cars, chemicals, the service economy. That is why they ginning of a move to do just that. These health, education, and so forth. It would be a are all talking about this wonderful countries are bound to fight the issue in Se- stretch to call many of these businesses economic boom that has to do with the attle. ‘‘new’’. service economy, so much so that the America’s labor unions are hardly united A study published in June by the Depart- labor unions I see have buddied up with on the matter. Teamsters spokesman Bret ment of Commerce estimates that the digital economy—the hardware and software of the the American Chamber of Commerce. Caldwell said he was ‘‘shocked’’ and ‘‘dis- appointed’’ in Mr. Sweeney. ‘‘We in no way computer and telecoms industries—amounts The American Chamber of Commerce to 8% of America’s GDP this year. If that has gone international. They are not agree that the administration’s trade poli- cies are good for working men and women,’’ sounds rather disappointing, then a second representing Main Street America. he said. ‘‘The Teamsters will play a very ac- finding—that IT has accounted for 35% of On yesterday, Monday, November 1, tive role in demonstrations in Seattle.’’ total real GDP growth since 1994—should ‘‘Corporate, Labor Leaders Both Trum- keep e-fanatics happy. Mr. HOLLINGS. Mr. President, ‘‘Mr. pet Backing for Clinton’s Trade-Talk Perhaps unwisely. A new analysis by Rich- Sweeney’s decision to back the Clinton Plan.’’ I ask unanimous consent this ard Sherlund and Ed McKelvey of Goldman trade agenda rankled the more mili- Sachs argues that even this definition of article be printed in the RECORD. tant unions, such as the Teamsters, ‘‘technology’’ is too wide. They argue that There being no objection, the article since such things as basic telecoms services, was ordered to be printed in the and the United Steelworkers of Amer- ica.’’ Those are the manufacturing television, radio and consumer electronics RECORD, as follows: jobs. Just as the fabric boys divorced have been around for ages, they should be ex- [From the Wall Street Journal, Nov. 1, 1999] cluded. As a result, they estimate the com- themselves from apparel and now can CORPORATE, LABOR LEADERS BOTH TRUMPET puting and communications-technology sec- toot for this kind of legislation, the BACKING FOR CLINTON’S TRADE-TALK PLAN tor at a more modest 5% of GDP—up from (By Helene Cooper) head of the service economy, John 2.8% in 1990. This would make it bigger than Sweeney, has forgotten about manufac- the car industry, but smaller than health WASHINGTON.—Depending on how you look care or finance. In most other economies, the at it, the joint letter from corporate and turing jobs, and he is going along. That share is lower; for the world as a whole, union leaders supporting the Clinton admin- is why we got this overwhelmingly bi- therefore, the technology sector might be istration’s agenda for global trade talks, was partisan majority. only 3–4% of GDP. either a huge win for big business or for But back to the point, this is what But what, you might ask, about the Inter- labor unions. disturbs this particular Senator, that net? Goldman Sachs’s estimate includes The way corporate America tells it, the we are hollowing out the manufac- Internet service providers, such as America letter was a victory for pro-trade American turing strength, the industrial back- Online, and the technology and software companies because John Sweeney, head of used by online retailers, such as Ama- the AFL–CIO, signed it. ‘‘How are the labor bone of the United States of America. zon.com. It does not, however, include trans- unions going to protest in Seattle [at the up- The so-called service economy or in- actions over the Internet. Should it? E-busi- coming World Trade Organization’s big pow- formation technology, or information ness is tiny at present, but Forrester Re- wow] if Mr. Sweeney is saying labor supports society, strikingly—why don’t they search, an Internet consultancy estimates the trade agenda?’’ asked Frank Coleman, read the November 5, 1999, edition of that this will increase to more than $1.5 tril- spokesman for the U.S. Chambers of Com- the London Economist that has just lion in America by 2003. Internet bulls cal- merce. come out? On page 87, there is an arti- culate that this would be equivalent to about Indeed, Mr. Sweeney’s decision to back the cle entitled ‘‘The New Economy, E-Ex- Clinton trade agenda rankled the more mili- 13% of GDP. Yet it is misleading to take the tant unions, such as the Teamsters and the aggeration: The Digital Economy is total value of such goods and services, whose United Steelworkers of America. Much Smaller Than You Think.’’ I ask production owes nothing to the Internet. The But AFL–CIO leaders said the letter shows unanimous consent to have that article value added of Internet sales—i.e., its con- Mr. Sweeney at his savviest. For one thing, printed in the RECORD. tribution to GDP—would be much less, prob- the AFL–CIO is backing Vice-President Al There being no objection, the article ably little more than 1% of GDP. Gore’s presidential campaign and wants to This is not to deny that the Internet is was ordered to be printed in the changing the way that many firms do busi- minimize political damage to his election RECORD, as follows: chances by hammering him on trade. ness—by, for example, enabling them to slim More significantly, several big company [From the London Economist, Nov. 5, 1999] inventories—but, in the near future, as a chieftains, including John E. Pepper, chair- The New Economy E-xaggeration: The Dig- proportion of GDP, it is likely to remain man of Procter & Gamble Co., Maurice ital Economy is Much Smaller Than You small. ‘‘Hank’’ Greenberg, head of American Inter- Think A LUDDITE’S LAMENT national Group Inc., and Robert Shapiro, Newspapers and magazines are packed with If measuring the size of the technology sec- head of Monsanto Co., also signed the letter. stories about the digital economy, the infor- tor is hard, calculating its contribution to

VerDate 29-OCT-99 03:16 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.039 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13637 real economic growth is trickier still, be- the importance of [information technology] Again, instead of doubling the vol- cause the prices of IT goods and services (ad- because much of the money goes to replace ume of steel imports since 1983, the justed for quality) have fallen sharply rel- equipment which becomes obsolete ever United States remains by far the larg- ative to the prices of other goods and serv- more quickly. The share of [information technology] in additional ‘‘net’’ investment est importer. ices. For example, official figures show that So we are importing the steel. We are America’s spending on IT has risen by 14% a is much smaller. Computers still account for year in nominal terms since 1992, but by only 2% of America’s total net capital stock. not having a savings rate. According to more than 40% a year in real terms. This fig- I want to dwell on this for a moment, the Financial Times article that was ure is so high partly because it is extremely for the main and simple reason that printed in the RECORD the other day: sensitive to assumptions about the rate at this really is what is at issue and why Fears of a slide in the U.S. dollar has which the price and quality of IT is chang- the Senator from South Carolina takes haunted global currency markets for several months now. The dollar was granted a re- ing. the floor. It is just not textiles. Tex- The Commerce Department calculates that prieve last week following better than ex- the technology sector has contributed 35% to tiles is on its way out. pected August trade figures. But many ob- overall economic growth over the past four And by another headline I saw in the servers believe it is only a matter of time be- years. But because such figures are based on New York Times, on the right-hand fore the dollar succumbs to mounting trade spending in real terms, the Goldman Sachs upper column of the front page this imbalances. study reckons they are misleading. In nomi- morning, President Clinton is getting Quoting from the book I previously nal terms, IT has accounted for a more mod- together with the People’s Republic of mentioned: est 10% of GDP growth in the past four China to admit them to the World In the 1960s—— years. Trade Organization. You can pass the Another popularly quoted figure is that Since the distinguished Senator from CBI, the sub-Sahara, the NAFTA there, New York went back 65 years— business spending on IT has risen from 10% there, and there yonder, and pull it all of firms’ total capital-equipment investment In the 1960s President John F. Kennedy felt in 1980 to 60% today. But again, this is based around, but once that is done, once so strongly about this that he ranked dollar on constant-dollar figures, and so it hugely China gets into the World Trade Orga- devaluation alongside a nuclear war as the exaggerates the true increase. In terms of nization and starts with its trans- two things he feared most. current dollars (and before the latest revi- shipments and its appeals, it controls There you go. Here we have it. We sions), Goldman Sachs calcuate that busi- the general assembly. have a whole book written on it. Why, ness investment in computers accounts for We had a resolution about 4 years yes, it provides jobs. The information 35% of total capital spending, not 60%. And ago to have hearings on human rights technology society or globalization, as even this exaggerates the importance of IT, within the People’s Republic of China. they want to call it, the engine of our because much of the money goes to replace That crowd went back down into Africa equipment which becomes obsolete ever great economic recovery in the United and Australia and around and changed States, our wonderful world leadership, more quickly. The share of IT in additional the vote, and they never had the hear- ‘‘net’’ investment is much smaller. Com- it provides jobs for the best, the top 5 puters still account for only 2% of America’s ing. percent of the population. You have to So I am telling you, we really are total net capital stock. be highly intelligent and everything going to be a minority in the World For years economists have been seeking in else; like I have mentioned the 22,000 Trade Organization. They can change vain for evidence that computers have dra- employees at Microsoft. All 22,000 are matically raised productivity. One expla- around your environmental protec- millionaires. More power to them. But nation for the failure of productivity to tions, your labor protections, your that does not give you any exports, surge may be that official statistics are un- high standard of living, and everything that does not give you any growth. derstating its growth. Another is that much else. And the CBI and sub-Sahara, and That does not give you any strength of investment in IT has been wasted: hours everything else that we think we are spent checking e-mail, surfing the Net or manufacturing in the industrial econ- doing something to help, we are going playing games reduce, not increase, produc- omy. tivity. A third may simply be that IT is still to China, I can tell you that right now That is where we are hollowing it too small to make a difference: for the mo- with the front page article about Presi- out. That is why we cannot afford it. I dent Clinton. So we know where we are ment, appropriately enough, you can count would love to help the Caribbean Basin. the digital economy on the fingers of one headed with respect to that. I would love to help the sub-Sahara. hand. But my friend, Eamonn Fingleton, That is changing, and firms are learning. has written a book, ‘‘In Praise of Hard But time and again, we have given over And note this: if you add in all computer Industries.’’ Obviously, I can’t include and over and over again with respect to—I remember back in the Philippines software and telecoms (on the widest defini- the book in the RECORD at this par- tion), the share of IT in the capital stock ticular time. But I refer to its compari- we had given there. We had other par- rises to 10–12%. As it happens, this is almost ticular initiatives whereby we always the same as railways at the peak of Amer- sons where the Wall Street Journal time and time again has come out sacrificed at the textile desk. ica’s railway age in the late 19th century. I do not have it with me right now, again and again with certain Railways boosted productivity and changed but I have it down where we have given the face of Victorian commerce. Hype is misstatements. to Turkey. We gave to Egypt in Desert hype—but the new economy may yet happen In 1996, when everyone from the Wall anyway. Street Journal to the Christian Science Mon- Storm. We have just eliminated, in the Multifiber Arrangement, over a 10-year Mr. HOLLINGS. I quote from the ar- itor was dismissing the Japanese economy as period—now we are in the 5th year—all ticle: sluggish or stagnant or even mired in a deep slump, in fact Japan’s growth rate that year textile tariffs and everything else of .. . they estimate the computing and com- of 3.9 percent was the best of any major that kind. So we do not have any pro- munications-technology sector at a more economy and was significantly superior to modest 5% of the GDP —up from 2.8% in tectionism about which to really talk. the rate of 2.8 percent recorded in the boom- We have important jobs. The textile 1990. . . . ing United States. . . . The value added of Internet sales—i.e., its Although experts like the Economist’s edi- jobs, compared to those retail jobs—the contribution to the gross domestic product— tor in chief . . . predicted a decade ago that average textile wage is $11 an hour. would be much less, probably little more Japan’s savings rate would plunge in the With benefits, it increases that. Those than 1% of the gross domestic product. 1990s, the truth is that at last count Japan are good jobs that we are trying to Mr. President, another popularly was producing $708 billion of new savings a hold onto—the jobs of middle America, quoted figure is that business spending year—or nearly 60 percent more than Amer- which is the strength of the democratic ica’s total of $443 billion ... Japan has now on information technology has risen society. decisively surpassed the United States as the Let me go right back to the par- from 10 percent of a firm’s total cap- world’s main source of capital . . . Japan’s ital, equipment and investment in 1980 net external assets jumped from $294 billion ticular editorial. This is how silly they to 60 percent today. Again, this is to $891 billion in the first seven years of the can get. I will quote from the editorial. based on constant dollar figures. And it 1990s. By contrast, America’s net external li- This editorial is from the Wall Street hugely exaggerates the true increase. abilities ballooned from $71 billion to $831 Journal. So I ask unanimous consent billion. In terms of current dollars . . . Goldman to have printed in the RECORD the edi- Sachs calculate that business investments in With these things going on, you torial of this morning from the Wall computers accounts for 35% of total capital begin to worry where you are headed Street Journal. The title of the edi- spending, not 60%. And even this exaggerates with the particular trade bill. torial is ‘‘The Old Isolationists.’’

VerDate 29-OCT-99 03:47 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.042 pfrm01 PsN: S02PT1 S13638 CONGRESSIONAL RECORD — SENATE November 2, 1999 There being no objection, the edi- power lest it hurt Vice President Gore with Plan has worked. But there is a limit torial was ordered to be printed in the Big Labor. Rest assured this flagging enthu- to what you can give away. Record, as follows: siasm for free trade has been noted in Demo- I have time and again said that two- cratic circles. THE OLD ISOLATIONISTS Later this month Mr. Clinton traveles to thirds of the clothing I am looking at We’ve got the ideal subject for President an international trade meeting in Seattle, is imported. One-third of all consump- Clinton’s next speech on the ‘‘new isola- supposedly to rally the world back to the tion in the United States is imported tionism’’ in Congress: Senate Democrats. free-trade flag. But if he can’t deliver right now. If this train continues, it They’ve been abetting a filibuster that may through Congress something as small as will be over half within the next 5 kill the Africa and Caribbean free-trade bill lower tariffs for Africa, Mr. Clinton might as years. That is the hollowing out. If we that Mr. Clinton at least claims he still well stay home. wants. are going to follow the London econo- New York Democrat Pat Moynihan made mists and the Brits who went from the No doubt they think they can get away the point with his usual delicate bluntless on with this because the media have barely no- the Senate floor last week. ‘‘The chairman production of goods to the providing of ticed. Jesse Helms gives affluent, powerful (Republican Bill Roth) and I were planning services—a service economy—we are Carol Moseley-Braun a hard time for an am- to spend a few days in Seattle just meeting going to have minimal growth. They bassadorship, and it becomes page one race- with people. We were not going to speak. got a British Army, but it is not as big baiting mews. But the President’s own party Dare we go? I suppose Ambassador as our Marine Corps. But we are going stonewalls a trade bill that would help mil- Barshefsky, is required to go,’’ he said of the to lose influence in the World Trade lions of Africans escape their desperate pov- predicament the U.S. trade rep would be in if erty, and the story lands back among the Organization, in GATT, treaties in the the Africa bill failed. ‘‘I don’t want to show Mideast and everywhere else, because real estate ads. my face.’’ The bill has everything Dan Rather and Late yesterday Mr. Daschle finally agreed money talks. We don’t have those other good media liberals claim to love. It’s to oppose Mr. Hollings, but only after he got things going. bipartisan, with support ranging from New Mr. Lott to guarantee him votes later on Now, Mr. President, reciprocal trade. York liberal Charlie Rangel to Texas con- such domestic political and non-trade mat- I have an amendment on reciprocity, servative Phil Gramm. It’d help Africa not ters as the minimum wage. This shows where one on labor rights, and I have one with handouts, but by reducing U.S. tariffs his priorities lie. When the final Africa trade and quotas so these countries can share in with respect to the matter of the envi- bill votes are toted up, we’ll also see who the ronment. It was all included. Let me the wealth of the global economy. And it re- real isolationists are. pudiates Pat Buchanan-style trade protec- just note, this is with tremendous in- tionism. Mr. HOLLINGS. Mr. DASCHLE is terest to this particular Senator be- It’s also a helluva good political story. right. Mr. LOTT had not allowed a wish cause I have just picked up this week’s Fronting for the textile lobby, Ol’ Fritz Hol- list of protectionist amendments. You Time magazine. What we really have, lings of South Carolina has been leading a see, Mr. LOTT had given fast track to in essence, is the campaign finance bill filibuster like he just walked out of the 19th this particular bill, until this morning, of 1999. They say they are not going to century. His hilarious rants cite as protec- he said yesterday afternoon, but that tionist authorities both Pat Buchanan and pass it, but this is the campaign fi- left-wing economist Paul Krugman. was without notice. I went back to get nance bill of 1999. ‘‘And so Buchanan comes out, and was the some amendments. When I was getting In the middle, on pages 38 and 39, is best voice we had in a national sense. I have those amendments at 5:30, they closed an open-page Buyers Guide To Con- been talking trade while that boy was in this Senate Chamber down. They didn’t gress. Down here listed is the Carib- GoZANga. Is that the name of tat high want amendments. Now he says you bean tariff relief, a bill to let the Car- school around her, GoZANga?’’ Ol’ Fritz was can get amendments. Here is what the ibbean and Central American countries yelling on the Senate floor last week, refer- Wall Street Journal thinks: ring to Gonzaga High School. export apparel to the United States ‘‘We are in trouble,’’ the Senator from Pennsylvania’s steel front-man Rick duty and quota free. Then you can go Milliken & Co. said later. ‘‘This boom they Santorum on ‘‘antidumping negotiations,’’ down to the contributions. The cloth- are talking about in the stock market is the Iowa protectionist Tom Harkin on child ing firms want access to cheap-tax-ad- information society; it doesn’t create the labor, Michigan’s Carl Levin (a wholly owned subsidiary of the United Auto Workers) on vantage offshore production both Clin- jobs.’’ ton and Republicans favor as a free Self-parody aside, his strategy is obvious: ‘‘worker rights,’’ among others. None of this run out the Senate clock. That’s why, after has anything to do with Africa trade. trade measure. more than a week of debate, GOP leader It doesn’t? Child labor doesn’t have They have in here—yes, the manufac- Trent Lott wants to get on with the vote and anything to do with Africa trade, with turing and retail side is Sara Lee Cor- other Senate business. Enter Senate Demo- Caribbean Basin Initiative trade? It poration, Gap, the ATMI, and every- cratic leader Tom Daschle, who says he’s for doesn’t? Wait until the Senator from thing on the one side, and the AFL–CIO the bill, but spent last week aiding Mr. Hol- Iowa comes out here and presents his anti-sweat-shop groups. We have seen lings by rallying fellow Democrats to sup- where that sort of split is. They are port Fritz’s filibuster. amendment. That is how arrogant they Mr. Daschle’s gripe was that Mr. Lott have gotten. They splash a bunch of going along now with service labor hadn’t allowed a wish-list of protectionist things people would not understand. It leader John Sweeney and not with the amendments: Pennsylvania’s steel front-man has everything to do with it. In fact, manufacturing jobs in America. Rick Santorum on ‘‘anti-dumping negotia- those are the principal amendments Then we go to last week’s edition, tions,’’ Iowa protectionist Tom Harkin on the Senator from South Carolina has. and we have the fruit of its labor. We child labor, Michigan’s Carl Levin (a wholly If the Senator from Delaware would see that, in addition to Sara Lee, we owned subsidiary of the United Auto Work- have Bill Farley and the Fruit of the ers) on ‘‘worker rights,’’ among others. None agree to them, we could move on with of this has anything to do with Africa trade. this bill. Loom group. It is just embarrassing to The Senate is supposed to be full of states- Specifically, in NAFTA we had the me when you take Farley, who already men. But on this subject the House has been labor side agreements. They are not in- moves 17,000 jobs out of Kentucky and more worldly. When protectionists tried a cluded in the CBI/sub-Sahara. In some 7,000 from Louisiana, and then he procedural ruse to kill Africa trade in the NAFTA, we had the environmental side gets a $50 million bonus when this bill House, Mr. Rangel gathered the names of 79 agreements. Not in CBI/sub-Sahara. In passes. They are talking about how we Democrats who would vote for a GOP rule to the Mexican NAFTA, we had reci- are going to help working Americans. limit debate. Mr. Lott has 48 or so Repub- Then, all we have to do is go back to licans in favor of the bill in the Senate, but procity. Not in CBI, not in sub-Sahara. the White House hasn’t yet been able to get In fact, when the Senator from New this week’s London Economist again, even a dozen Democrats for the 60 votes nec- York jumped back 65 years, to 1934, I in the very first part of the magazine essary to shut off debate. Democratic Party didn’t hear him enunciate clearly re- section. We can put that in the to Africa: Get lost. ciprocal trade agreements of Cordell RECORD. These columns have often saluted Mr. Clin- Hull, reciprocity. They had hard, good I ask unanimous consent that the ar- ton’s achievements on trade policy, notably businessmen. Trade was trade, not a ticle entitled ‘‘Politics and Silicon Val- Nafta and Gatt. But it’s been downhill since ley’’ be printed in the RECORD. then. The President hasn’t pushed a trade moral thing of foreign aid. That is our bill through Congress in five years, mainly problem today. Too many in the polit- There being no objection, the article because of Democratic opposition. He’s also ical world think about trade as aid, an- was ordered to be printed in the taken to soft-selling fast-track negotiating other Marshall Plan. And the Marshall RECORD, as follows:

VerDate 29-OCT-99 03:16 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.057 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13639 [From the Economist, Oct. 30, 1999] exposed high-tech companies to a barrage of So which party will gain from the com- POLITICS AND SILICON VALLEY litigation. Since then the Valley has woken puter industry’s belated entry into politics? The rise of America’s high-tech industry is not up to the fact that it helps to have friends in It is hard to say. Mr. Schmidt points out just a windfall for presidential hopefuls. It Washington. The government has the power that most computer folk are seriously dis- could also be a godsend for the liberal polit- to turn off one of the Valley’s most impor- illusioned with the established parties: with ical tradition. tant resources: the supply of foreign brains. the Democrats because they are too soft on The Microsoft antitrust case may even prove vested interests, with the Republicans be- Until recently, computer geeks hardly no- that it has the power to restructure the en- cause of their ‘‘Neanderthal’’ social views. ticed politics. Washington was ‘‘the ultimate tire computer industry. In short, the two They think politics is not about ideology, big company’’. Policy wonks and political sides simple have to talk to each other. but about fixing things, a tidy-minded ap- theorists—let alone the poor saps sitting in The Technology Network (TechNet), a po- proach that comes easily to scientists and Congress—‘‘just didn’t get it’’. And the pol- litical action group founded two years ago in engineers—and which carries echoes of the icy establishment, doers and thinkers alike, Silicon Valley, has just set up a second office earlier, not-so-crazy Ross Perot. was only too happy to return the com- in Austin, and plans to open more chapters It is often claimed that ‘‘libertarian’’ and pliment. In the last presidential election in the future—an attempt to influence policy ‘‘progressive’’ groupings are emerging in the campaign, references to a high-tech future at both state and local level. Companies in computer industry. Yet these sound not dis- were vague and perfunctory, and Silicon Val- Washington, DC—home of America Online, similar from the sort of shifts that are oc- ley or Seattle were not particular ports of America’s biggest Internet service provider, curring anyway inside the Republican and call. Washington, DC and the geeks existed and a city where the computer industry has Democratic Parties. Libertarians are rep- in different worlds. just taken over from government as the big- resented by men like T.J. Rodgers, the boss How things have changed. According to the gest local employer—have also started their of Cypress Semiconductor, and Scott Centre for Responsive Politics, a Washington own lobbying group, CapNet. McNealy, the head of Sun Microsystems, who watchdog group, by the end of June this year According to Steve Papermaster, an Aus- argue that government is being rendered contributions from the computer industry tin entrepreneur who heads TechNet Texas, largely irrelevant by the power and speed of were already three times those given to Bill there is a greater sense of urgency within computers, and that the best way to deal Clinton and Bob Dole combined during the the technology industry to have more of a with problems such as the ‘‘digital divide’’ 1996 campaign. Of the $843,000 in direct indus- say in politics. Like it or not, high-tech busi- may well be to extend the market, not in- try contributions, over one-third went to nesses have to work in a world of taxes, reg- vent new government programmes. This is George W. Bush, the Republican front-run- ulation, lawsuits and legislation; they need ‘‘compassionate conservatism’’—perhaps op- ner, with the two Democrats—Vice-President politicians just as much as politicians need erating even through beneficent computer Al Gore and Bill Bradley—both netting them. If not more: for political contributions companies themselves, offering training and about half of the Texas governor’s total. from the high-tech hives are still well below education—of the sort that George W. Bush These figures tell only part of the story, those that come in from such old-fashioned might recognize. however. They do not include contributions sectors as banking or even agriculture. The progressives, who originally appeared from telecommunications and biotech com- There is a lot of catching-up to do. under Bill Packard at Hewlett-Packard in panies, nor the millions of dollars the can- THE GEEKS AND THE PARTIES the 1990s, have now fanned out to a growing didates have received in fund-raisers The Republican and Democratic candidates number of institutions, from Joint Venture- organised by computer executives and ven- who are now trawling the high-tech industry, Silicon Valley, a think-tank dedicated to ture capitalists: entrepreneurs who helped hands out, hope that this new political tackling local problems, to TechNet, which fuel the high-tech boom, and are now helping awareness has a partisan tinge. Republicans now consists of no fewer than 140 high-tech pave the way to the White House. seem to have more grounds for optimism. bosses. They argue that there is still an im- Mr. Bush has courted the computer chiefs After years when it looked as if computers portant place for the government in a com- of Texas since before he became governor, in favoured big organisations over small ones, puter-driven economy—albeit a much small- 1995. Heading the committee of computer lu- and companies such as IBM appeared to be er and more intelligent government than the minaries advising him is Michael Dell, the breeding grounds for conformism, the high- one that currently resides in Washington. Godfather of Austin’s high-tech revolution, tech industry is arguably putting technology They love to point out that government who is actively recruiting other computer back on the side of individual liberty. funded the research that gave birth to the executives into the Bush camp. Among the The average computer geek is convinced Internet, and one of their key complaints is other members of the committee are James that the rise of clever machines and inter- that the federal government’s R&D spending Barksdale, founder of Netscape, and John linked networks is inexorably shifting power over the past 30 years has declined dramati- Chambers, president and CEO of Cisco Sys- from organisations to individuals, cally. Doesn’t that sound just a bit like Al tems. But if Mr. Bush has Texas sewn up, decentralising authority and accelerating in- Gore? other candidates have been prospecting else- novation. Not only big companies and big where. In Colorado, which now has the sec- unions, but also big government, seem to be BRAVE NEW POLITICS ond-highest concentration of high-tech jobs on the point of disappearing. The sort of It is tempting to conclude that the high- in the country, the state’s prosperous world the geeks are now conjuring up is a tech industry, flush with its new success, is telecom industry has been donating gener- throwback to that of the Founding Fathers, claiming an impact on politics that goes far ously to both Senator John McCain and Mr. so admired by Republican revolutionaries of beyond the facts. Yet politics is a theoretical Gore. Trips to the Pacific north-west have the Gingrich mould, where (morally upright) discipline, as well as a practical one; and been especially lucrative for Mr. Bradley and yeomen farmers pursued happiness quite un- here the collusion with high-tech is leading Mr. McCain, with Microsoft giving both can- disturbed by government. in fascinating directions. Computer-folk are didates their largest computer-industry do- Yet Democrats, too, think they have nat- beginning to look outside cyber-land for the nations to date. Nor are the contributions ural friends in the high-tech industry. There answers to their questions about the future only for the men at the top: the computer in- is a growing feeling in some quarters that— of society and government. At the same dustry gave $8m to congressional campaigns as in the case against Microsoft—govern- time, the intellectual and policy establish- in 1998, more than twice what it gave in 1994. ment is not always a force for evil. Indeed, ments are increasingly looking to the Val- This money is all the sweeter for coming the public sector may hold the key to solv- ley, and other high-tech corners, for clues as with few strings attached. The computer in- ing the social problems that now plague the to the shape of things to come. dustry has yet to develop a coherent lob- high-tech industry: the shortage of educated The latest think-tank in Washington, DC, bying strategy, in which campaign donations labour, the over-strained transport system the New America Foundation, is largely are implicitly exchanged for influence over and the rapidly growing gap between rich funded by Silicon Valley money and is de- the political process. This is partly because and poor. voted to exploring the sort of political topics the ‘‘computer industry’’ is really just a col- Some computer bosses are already appeal- that will be at the heart of the digital age: lection of assorted (and often competing) in- ing to politicians to get their act together. digital democracy, the future of privacy and terests. As one industry analyst puts it, Andy Grove, the head of Intel, has told con- the digital divide. New America is in one of ‘‘Just as there is no ‘Asia’ to Asians, there is gressmen that the Internet is about to wipe the few funky bits of Washington, Dupont no ‘technology community’ to technology out entire sections of the economy—and has Circle. It has scooped up a good proportion of companies.’’ The interest of hardware com- warned them that, unless politicians start the brightest American thinkers under 40 in panies are not necessarily those of software moving at ‘‘Internet rather than Washington its fellowship programme, including Michael or e-commerce companies, and therefore a speed’’, America may see a repeat of the so- Lind, Jonathan Chait and Gregory focused, industry-wide lobbying effort has cial disaster that followed the Rodriguez, and it is making sure that these been difficult to co-ordinate. mechanisation of agriculture. The high-tech bright young things interact with the cyber- Slowly, this is changing, as high-tech ex- industry is beginning to realise that it is elite at regular retreats and discussions. ecutives finally learn the rules of political doing nothing less than ‘‘defining the eco- So far, the person who has straddled the gamesmanship. Eric Benhamou, boss of nomic structure of the world,’’ says Eric worlds of social theory and Silicon Valley 3Com, dates the politicisation of Silicon Val- Schmidt, the boss of Novell. And with that most successfully is Manual Castells, a soci- ley to 1996, when California’s trial lawyers realisation comes, for some at least, a heavy ologist at the University of California. Mr. sponsored a ballot measure that would have sense of responsibility. Castells enjoys a growing reputation as the

VerDate 29-OCT-99 03:16 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.059 pfrm01 PsN: S02PT1 S13640 CONGRESSIONAL RECORD — SENATE November 2, 1999 first significant philosopher of cyber-space— doing business—is beginning to challenge the watchdog group, by the end of June this a big thinker in the European tradition who rules of political life in several fundamental year, contributions from the computer in- nevertheless knows the difference between a ways. And it is doing so, of course, not mere- dustry were already three times those given gigabit and a gigabyte. His immense three- ly in America but the world over—though to Bill Clinton and Bob Dole combined dur- volume study, ‘‘The Information Age’’ America is both farther ahead, and rep- ing the 1996 campaign. Of the $843,000 in di- (Blackwell), echoes Max Weber in its ambi- resents more fertile ground. rect industry contributions, over one-third tion and less happily in its style (the ‘‘spirit First, the cyber-revolution is challenging went to George W. Bush, the Republican of informationalism’’, for example). He the expansionary tendencies of the state. front-runner, with the two Democrats—Vice writes about the way in which global net- Over the past century the state has grown President Al Gore and Bill Bradley—both works of computers and people are reducing relentlessly, often with the enthusiastic sup- netting about half of the Texas Governor’s the power of nation states, destabilizing port of big business. But corporatism has no total. These figures tell only part of the elites, transforming work and leisure and future in the new world of creative destruc- story, however. They do not include con- changing how people identify themselves. tion. (It is a safe bet that imitation Silicon tributions from telecommunications and Mr. Castells ruminates obscurely about Valleys that have been planned by politi- biotech companies, nor the millions of dol- ‘‘the culture of real virtuality’’, ‘‘the space cians are going to hit the buffers.) lars the candidates have received in fund- of flows’’ and ‘‘timeless time’’. He also casti- The spread of computer networks is also raisers organised by computer executives gates the cyber-elite for sealing themselves moving commerce from the physical world and venture capitalists: entrepreneurs who off in information cocoons and leaving the to an ethereal plane that is hard for the helped fuel the high-tech boom, and are now poor behind. But this former Marxist and state to tax and regulate. The United States helping pave the way to the White House. student activist cannot restrain his enthu- Treasury, for example, is currently agonizing siasm for the way that it is diffusing 1960s And on and on. If they can see it in over the fact that e-commerce doesn’t seem downtown London and on Main Street libertarianism ‘‘through the material cul- to occur in any physical location, but in- ture of our societies’’. The result is that his stead takes place in the nebulous world of America with the headline, ‘‘The Buy- sprawling boo, is now an important fashion ‘‘cyber-space’’. The internet also makes it er’s Guide To Congress,’’ and list in accessory in Palo Alto cafe´s. easier to move businesses out of high-tax- this particular bill the Caribbean tariff Will the views it enshrines be more than a ation zones and into low ones. relief bill, we Senators don’t have any passing trend? Very probably. The last time One of the state’s main claims to power is pride. Is there no shame? Can’t we un- America underwent a fundamental economic that it ‘‘knows better what is good for people change, a fundamental political realignment derstand what is going on and that than the people know themselves’’. But the NAFTA doesn’t help the workers in rapidly followed: the transition from an Siliconisation of the world has up-ended this, agrarian to an industrial society in the mid- putting both information and power into the South Carolina? We lost all the jobs. 19th century soon gave rise to mass political hands of individuals. Innovation is now so What few remain, they are saying the parties with their city bosses and umbilical fast and furious that big organizations in- high-tech revolution has passed by, and ties to labour and capital. The cyber-elite creasingly look like dinosaurs, while wired it says the info revolution escapes not only suspects that changes of a similar individuals race past them. And decision- them. magnitude are inevitable. It hopes to be able making is dispersed around global networks to help shape the new politics. If I could get Gates to South Carolina Today’s sharpest intellectuals are fas- that fall beyond the control of particular na- tomorrow morning, I would bring him cinated by Silicon Valley for the same rea- tional governments. in. He is a wonderful industry and ev- son that thinkers early in this century were The web is also challenging traditional erything else. At least give President ideas about communities. Americans are ac- intrigued by Henry Ford: the smell of huge Reagan credit; we subsidized the semi- amounts of money made in new ways. But customed to thinking that there is an un- comfortable trade-off between individual conductor industry by putting in a vol- the Valley has more interest for them than untary restraint agreement and Motown ever had, because it deals in the freedom and community ties: in the same very stuff of intellectual life, information: breath that he praises America’s faith in in- Sematech. and because this, more than any other place, dividualism, Tocqueville warns that there is That is why we would have Intel and is a laboratory of the future. danger each man may be ‘’shut up in the sol- otherwise gone. Yes; we have moments Individualism has been losing out as a itude of his own heart’’. Yet the Internet is of sobriety in this particular body. But practical doctrine for the past century be- arguably helping millions of spontaneous it is election 2000. It is all financing, cause the invention of mass production en- communities to bloom: communities defined and the buying of the Congress. They by common interests rather than the acci- couraged the creation of big business, big ought to be ashamed to bring this bill. labor and, triangulated between the two, big dent of physical proximity. Information technology may be giving But I will make the Senator from government. this has been the age not of Jef- Delaware a deal. If he will accept a side ferson’s yeoman farmer, but of William birth, too, to an economy that is close to the Whyte’s Organisation Man. Now, however, theoretical models of capitalism imagined by agreement on labor similar to what we computers are shifting the balance of power Adam Smith and his admirers. Those models have on NAFTA, and a side agreement from collective entities such as ‘‘society’’ or assumed that the world was made up of ra- that we have on NAFTA with respect ‘‘the general good’’ and handing it back to tional individuals who were able to pursue to the environment and reciprocity, we those whom governments once condescend- their economic interests in the light of per- would not even have to. Those amend- ingly referred to as their ‘‘subjects’’. fect information and relatively free from government and geographical obstacles. Ge- ments ought to be accepted. They were This cult of individual effort, completely on the NAFTA agreement. If he will ac- detached from the old hierarchical or social ography is becoming less of a constraint; structures, can be found everywhere in Sil- governments are becoming less interven- cept those, I will sit down, and we can icon Valley. The place is full of bright immi- tionist; and information is more easily and go ahead and vote on this particular grants willing to sacrifice their ancestral rapidly available. bill. I make that proposal to the distin- ties for a seat at the table; almost 30% of the So far—Mr. Castells apart—Silicon Valley guished Senator from Delaware. After 4,000 companies started between 1900–96, for has not produced a social thinker of any real he has had a chance to study it, I hope example, were founded by Chinese or Indians. stature. Technologists tend not to be phi- to hear from him because it would save losophers. But at the very least, comput- The Valley takes the idea of individual merit all of us a lot of time. extremely seriously. People are judged on erization is helping to push political debate in the right direction: linking market free- I have had relevant amendments, in- their brainpower, rather than their sex or se- stead of the ‘‘Hollings filibuster’’ all niority; many of the new internet firms are doms with wider personal freedoms and sug- headed by people in their mid-20s. gesting that the only way that government last week. The majority leader filibus- The Valley’s 6,000 firms exist in a ruth- can continue to be useful is by radically tered. He knew how to do what he lessly entrepreneurial environment. It is the streamlining itself for a more decentralized wanted to do. He filled the tree where world’s best example of what Joseph age. you couldn’t put up those amendments. Schumpeter called ‘‘creative destruction’’: It is a little early to expect that this sort You couldn’t put up any kind of old companies die and new ones emerge, al- of thinking will colour next year’s cam- paigns; the new alliances between politicians amendment with respect to child labor. lowing capital, ideas and people to be reallo- You couldn’t put up in any amend- cated. The companies are mostly small and and the cyber-elite have mostly sprung up nimble, and the workers are as different as for the most ancient and pragmatic of rea- ments with respect to trade. He filled you can get from old-fashioned company sons. But it may only be a matter of time be- the tree. He forced fast track. It was a men. As the saying goes in the Valley, when fore America sees, on the back of the com- bill with his amendments, take it or you want to change your job, you simply puter age, a great new flowering of liberal leave it. point your car into a different driveway. politics. I yield the floor. THE DISAPPEARING STATE Mr. HOLLINGS. It says: The PRESIDING OFFICER. The This twofold Siliconisation—the spread of How things have changed. According to the Chair recognizes the Senator from both the Valley’s products and its way of Centre for Responsive Politics, a Washington Iowa.

VerDate 29-OCT-99 03:16 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.061 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13641 DOD INSPECTOR GENERAL ports. The staff also conducted a num- of the DCIS internal affairs unit—Mr. Mr. GRASSLEY. Mr. President, it is ber of formal interviews. Walinski’s office. with a feeling of disappointment that I A careful review of all pertinent ma- Mr. President, can you imagine that? come to the floor today. What’s both- terial makes one point crystal clear: The head of the internal affairs unit of ering me is a disturbing report I am re- The evidence shows that Mr. DOD’s criminal investigative division leasing today on the Office of the In- Walinski fabricated his reported inter- was committing passport fraud. That’s spector General, or IG, at the Depart- view of the Air Force payroll techni- certainly a confidence builder in that ment of Defense, DOD. cian, Ms. Nancy Gianino, on May 21, organization, isn’t it? This is about a report prepared by 1993. This reported interview was con- These authorities further believe Mr. the Majority Staff of the Judiciary ducted in connection with the inves- Hollingsworth’s actions were especially Subcommittee on Administrative Over- tigation of possible tax evasion charges disturbing since passport fraud is usu- sight and the Courts, of which I am the against Mr. Steakley. ally committed in furtherance of a Chairman. In addition, OSC files contain numer- more serious crime, but the underlying I have always had such great respect ous references to a second internal af- crime was never discovered. for the DOD IG. I have always thought fairs case handled by Mr. Walinski, in Although Mr. Mancuso and Mr. Hol- that we could rely on that office to be which he apparently fabricated another lingsworth were considered friends by fair and independent and thorough, and report. associates, Mr. Mancuso failed to above all, honest. When the staff asked the DOD IG for recuse himself from administrative ac- In the past, I always felt like I could this case file—known as the Johanson tions affecting Mr. Hollingsworth. trust the DOD IG’s judgment. stolen gun case, they discovered that Mr. Mancuso even aided in Hol- This report, Mr. President is dis- Mr. Walinski had apparently fabricated lingsworth’s defense during criminal turbing. the reported interview of Agent Jon trial proceedings—even though Mr. The evidence in this report questions Clark on March 2, 1994 and possibly Hollingsworth was considered unco- the credibility of the IG’s investigative others. This file contains sworn state- operative. process. And it raises questions about ments by the agents involved that What’s more, Mr. Mancuso endorsed the judgment of the Acting IG, Mr. Walinski’s reported interview with an outstanding performance rating for Donald Mancuso. Clark never took place. Mr. Hollingsworth three weeks after he It is a report on the Oversight Inves- These two cases—when taken to- confessed to felonious activity to U.S. tigation of allegations of misconduct gether—show that Mr. Walinski has a State Department special agents. at the Defense Criminal Investigative history of falsifying reports. Mr. Mancuso even wrote a letter on Service, or DCIS. DCIS is the criminal And more importantly, the record official DOD IG stationary to the sen- investigations arm of the DOD IG. shows that rank and file complaints tencing judge, Judge Ellis, on the con- The allegations examined by the about Mr. Walinski’s unethical inves- victed felon’s behalf. Staff involve possible misconduct by tigative practices went directly to top In this letter, he asked the judge to DCIS agents between 1993 and 1996. DCIS management, including Mr. consider extenuating circumstances. The current Acting DOD IG, Mr. Mancuso. He told the judge that Mr. Hol- Mancuso, is associated with the allega- The record also shows DCIS manage- lingsworth had taken a half day’s leave tions. Mr. Mancuso was the Director of ment knew about the Walinski problem to file the fraudulent passport applica- DCIS from 1988 until 1997, when he be- but failed to take appropriate correc- tion. Evidently, Mr. Mancuso thought came the Deputy DOD IG. tive action. that taking leave to commit a crime I also understand that Mr. Mancuso Yet despite rank and file complaints, was sonehow exculpatory. is a potential candidate for nomination Mr. Walinski’s false reports were used This is what Mr. Mancuso said in his to be the next DOD IG. by DCIS management to discredit and letter to Judge Ellis, and I quote: ‘‘Mr. In June 1999, the Staff was ap- punish Agents Johanson and Steakley. Hollingsworth could have come and proached by a former DCIS agent, Mr. In January 1999, Mr. Walinski was al- gone as he pleased,’’ but he ‘‘took leave William G. Steakley. lowed to transfer to another federal to commit a felony.’’ Mr. Steakley raised numerous allega- law enforcement agency—the Treasury Mr. Mancuso concluded with this tions regarding prohibited employment IG—with no record of punishment or telling remark: ‘‘To this day, there is practices at DCIS, but these were far accountability. In his new assignment, no evidence that Mr. Hollingsworth has too extensive and complex to be exam- Mr. Walinski is still responsible for in- ever done anything improper relating ined by my small Subcommittee staff. vestigating employee misconduct. to his duties and responsibilities as a However, one of Mr. Steakley’s alle- In fact, the record shows that at least DCIS agent and manager.’’ gations caught our attention. This was 3 weeks after DCIS management was Coming from a law enforcement offi- the allegation that DCIS officials had informed that Mr. Walinski had fab- cer like Mr. Mancuso, these words defy ‘‘made false statements’’ in adverse re- ricated the Clark interview, he was understanding. The last time I ports on his conduct. given a generous cash bonus award. checked, part of doing your job as a Mr. Steakley alleged that an agent Moreover, Mr. Walinski was assigned law enforcement officer is not commit- assigned to the DCIS internal affairs to conduct an inspection of the field of- ting crimes. unit, Mr. Mathew A. Walinski, had a fice where rank and file complaints Mr. Hollingsworth confessed to and history of falsifying investigative re- about his false reports had originated. was convicted of felonious activity ports to damage the reputations of fel- While investigating Mr. Steakley’s while employed by DCIS as a criminal low agents. allegations, the staff discovered that investigator. Mr. Steakley further alleged that the DCIS internal affairs unit—to As State Department agents put it, senior DCIS management, including which Mr. Walinski was assigned—was these crimes were committed in the Mr. Mancuso, was fully aware of the al- directed by Mr. Larry J. Hol- furtherance of a more serious crime legations about this agent’s unethical lingsworth. that was never discovered. practices, yet failed to take appro- Mr. Hollingsworth was convicted of a Unfortunately, Mr. Mancuso seems to priate corrective action. felony in U.S. District Court in March have been completely blind to the And Mr. Steakley claimed he had 1996. He was apprehended and confessed problem. proof to back up the allegations. to filing a fraudulent passport applica- As a result of a series of decisions— The staff conducted a careful exam- tion after a fellow agent recognized his personally approved by Mr. Mancuso, ination of these allegations and con- photo in a law enforcement bulletin. Mr. Hollingsworth was allowed to re- cluded that some have merit. The government authorities, who in- main in an employed status at DCIS To evaluate the allegations, the staff vestigated Mr. Hollingsworth’s crimi- for 6 months after his felony convic- reviewed numerous documents to in- nal conduct, believe that he committed tion. He was then allowed to retire clude the extensive files at the Office about 12 overt acts of fraud. These with a full federal law enforcement an- of Special Counsel, OSC, DOD per- overt acts of fraud were committed nuity exactly on his 50th birthday in sonnel files, and DCIS investigative re- while Mr. Hollingsworth was Director September 1996.

VerDate 29-OCT-99 03:47 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.031 pfrm01 PsN: S02PT1 S13642 CONGRESSIONAL RECORD — SENATE November 2, 1999 Had Mr. Mancuso exercised good sight and the Courts has conducted an in- monly remove an employee on criminal mis- judgement and other available legal quiry into the personnel practices and con- conduct alone, or at a minimum, imme- options, Mr. Hollingsworth could have duct of certain agents within the Defense diately after a felony conviction. Had man- been removed from DCIS immediately Criminal Investigative Service (DCIS). The agement availed itself of other appropriate after conviction—in March 1996. Under DCIS is an agency in the Office of the De- legal removal options, Mr. Hollingsworth partment of Defense (DOD) Inspector Gen- would not have been allowed to retire on his these circumstances, he would have eral (IG). The former Director of DCIS—a 50th birthday, which gave him entitlement been forced to wait 12 years—until the sworn federal law enforcement officer—is to benefits amounting to more than three year 2008—to begin receiving a non-law now Acting DOD IG, Mr. Donald Mancuso. quarters of a million dollars. enforcement annuity commencing at Mr. Mancuso was Director of DCIS from 1988– The staff reviewed numerous documents to age 62. Had Mr. Mancuso exercised this 1997. Mr. Mancuso is currently a potential include the above-referenced OCS investiga- option, he would have saved the tax- candidate for nomination to be the next tion, DOD personnel files, DOD investigative payers at least $750,000.00, which is the DOD IG. reports, a Subcommittee-requested review amount of money Mr. Hollingsworth This staff report contrasts DCIS personnel by the Office of Personnel Management management practices that condoned and en- (OPM), State Department Diplomatic Secu- will collect thanks to the generous couraged maltreatment of rank and file rity investigative reports, and public court treatment he received from his friend agents, including the use of falsified inves- papers registered in the U.S. District Court and colleague, Mr. Mancuso. tigative reports, while protecting and re- for the Eastern District of Virginia. The Think of the signal this sends to warding a fellow manager who was a con- Subcommittee Majority Staff also conducted rank and file law enforcement officers victed felon. Management’s favorable treat- the following formal interviews: who look to their managers for leader- ment of the convicted felon, Mr. Larry J. Former DOD personnel: ship and fair treatment. Hollingsworth, will result in his receiving Mr. Matthew Walinski, DCIS Special Agent The office of the DOD IG demands substantial sums of money in federal law en- Internal Affairs the highest standards of integrity, forcement retirement annuities between 1996 Mr. Larry Hollingsworth, DCIS Director of judgment, and conduct. and the year 2008. If DCIS management had Internal Affairs Does Mr. Mancuso meet those stand- exercised good judgment and other more rea- Mr. William Dupree, Deputy Director of ards? sonable options, Mr. Hollingsworth would DCIS not have been allowed to retire on his 50th Ms. Eleanor Hill, Former DOD Inspector Given Mr. Mancuso’s poor judgment birthday and receive the $750,000.000 in bene- and his irresponsible handling of the General fits. He would have had to wait 12 years to Current DOD personnel: three cases examined in the staff re- retire. In another matter, a criminal investi- Mr. Donald Mancuso, Former Director of port, I believe it is reasonable to ques- gator, who falsified reports. Mr. Mathew A. DCIS and Current Acting IG for DOD tion: Walinski, also received a cash bonus award Ms. Jane Charters, DCIS Investigative after this misconduct was brought to the at- (1) Whether Mr. Mancuso should now Support be nominated and confirmed as the tention of senior DCIS management. Ms. Donna Seracino, Director of Personnel The staff report cites three separate per- DOD IG; for DCIS (2) Whether Mr. Mancuso should be sonnel cases brought to the Subcommittee’s Ms. Linda Martz, Employee Relations Spe- allowed to remain in the post he now attention involving DCIS. Each of these cialist cases involves questionable personnel prac- occupies—Acting DOD IG; Mr. Paul Tedesco, DCIS liaison agent in tices that were either condoned or ignored Hollingsworth criminal case And given the evidence that Mr. by DCIS management between 1993 and 1996. Walinski falsified several investigative Mr. John Keenan, Current Director of The Subcommittee on Administrative DCIS, formerly Dir., DCIS Operations reports, it is reasonable to question Oversight and the Courts has primary juris- Mr. Thomas Bonner, Current Agent in whether he should be assigned to a po- diction and oversight authority for adminis- Charge Dallas Office, DCIS, Assist. Dir DCIS sition at the Treasury Department in trative practices and procedures throughout Internal Affairs which he is responsible for conducting the Federal Government. As part of the proc- Ms. Nancy Gianino, Air Force Payroll Spe- criminal and administrative inquiries. ess of conducting its oversight responsibil- cialist Mr. President, today I am forwarding ities, the Subcommittee has been examining Lt. Col. Greg McClelland, DOD IG Adminis- the Majority Staff report to the appro- administrative procedures followed by var- trative Investigator priate committees, the Secretaries of ious inspectors general. This report reflects State Department Personnel: the Subcommittee Majority Staff’s review of Special Agent Robert Starnes and Special Defense and Treasury and other offi- questionable administrative decisions and Agent Sean O’Brien cials. misconduct within the criminal investiga- These officials must evaluate Mr. tive branch in the DOD IG’s office—DCIS, Office of Special Counsel: Mancuso’s fitness to serve as the DOD while Mr. Mancuso was the director of the Investigator William Shea IG as well as Mr. Walinski’s continued organization. Current and former DCIS Special Agents assignment as a criminal investigator. BACKGROUND were also interviewed on a confidential basis. They requested confidentiality out of I hope they will take the time to re- In June of 1999, the Subcommittee Major- fear of reprisal. This report will show fears of view this report before making a final ity Staff was approached by a former agent such reprisal are plausible based on the facts decision on these matters. of DCIS, Mr. Gary Steakley. Mr. Steakley al- developed by the Subcommittee. Mr. President, I now ask unanimous leged that a DCIS internal affairs Special consent to have printed two documents Agent, Mr. Walinski, had a history of fal- SUMMARY OF SIGNIFICANT FINDINGS in the RECORD: (1) A letter of comment sifying official reports to damage the reputa- The case of convicted felon Mr. Hollingsworth from Mr. Mancuso; and (2) the Majority tions of fellow agents. Mr. Steakley also al- Mr. Hollingsworth was the Director of in- Staff report. I know it’s a lengthy re- leged that senior officials at DCIS were fully ternal affairs for DCIS from April 1991 to port, and the GPO says it will cost aware of this agent’s questionable practices, September 1996. This unit routinely con- yet failed to take appropriate corrective ac- ducted investigations regarding the integrity $2,282.00 to print. But leaving no stone tion. and conductor of agents in DCIS. As stated unturned in ensuring that a person of It should be noted that an investigator in above, in at least two cases, DCIS manage- the highest integrity occupies the key the Office of Special Counsel (OSC), Mr. Wil- ment had knowledge of false witness state- watch dog post of DOD IG is well worth liam Shea, also looked into Mr. Steakley’s ments by an internal affairs agent, Mr. that cost, in my view. allegations of DCIS misconduct. OSC con- Walinski. There being no objection, the mate- cluded that Mr. Steakley was not a victim of Former Director of DCIS, Mr. Donald rial was ordered to be printed in the prohibited personnel practices. While the Mancuso, assisted Mr. Hollingsworth in re- RECORD, as follows: staff examined the conduct of DCIS super- maining in an employed status—as Director visors in regard to several specific decisions, of internal affairs—for six months after his MAJORITY STAFF REPORT TO THE CHAIRMAN it did not attempt to examine the numerous felony conviction in U.S. District Court. Law ON THE OVERSIGHT INVESTIGATION—THE DE- other allegations raised by Mr. Steakley. enforcement authorities, who investigated FENSE CRIMINAL INVESTIGATIVE SERVICE, While investigating Mr. Steakley’s allega- Mr. Hollingsworth’s criminal activities, be- DEPARTMENT OF DEFENSE tions, the staff learned that Mr. Walinski lieve that he committed at least 12 acts of (U.S. Senate Judiciary Subcommittee on Ad- was supervised by Mr. Hollingsworth—the di- overt fraud while head of the DCIS internal ministrative Oversight and the Courts, Oc- rector of internal affairs. Mr. Hollingsworth affairs unit. tober 1999, Senator Charles E. Grassley, was convicted of a felony in April 1996. None- Mr. Mancuso, a sworn federal law enforce- Chairman) theless, management allowed him to retire ment officer, aided in the defense of this par- EXECUTIVE SUMMARY with full federal law enforcement retirement ticular subordinate at his criminal trial. At The Majority Staff for the Senate Judici- benefits six months after his felony convic- no time did Mr. Mancuso offer to recuse him- ary Subcommittee on Administrative Over- tion. Federal law enforcement agencies com- self from administrative or personnel actions

VerDate 29-OCT-99 03:47 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.032 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13643 in regards to Mr. Hollingsworth—even has substantiated evidence that Agent report. Consistent with the Chairman’s com- though they were considered ‘‘close personal Walinski made false statements to Lt. Col. mitment, Mr. Mancuso’s written response, friends.’’ McClelland in sworn testimony in 1997. dated October 1, 1999, is included at the end Mr. Mancuso endorsed an outstanding per- Mr. Steakley’s attorney, Mr. Luciano A. of the report. formance evaluation of Mr. Hollingsworth Cerasi of the Federal Law Enforcement Offi- The attachments listed at the end of each three weeks after he confessed to felonious cers Association (FLEOA), notified DCIS section of the report are far too voluminous activity to the U.S. State Department spe- management that Agent Walinski’s witness to reproduce in the printed report. A com- cial agents. interview of an Air Force payroll technician plete set of the attachments will be main- Using official DOD IG stationery, with was falsified. DCIS management ignored Mr. tained in the Subcommittee files and avail- DOD IG emblem, Mr. Mancuso wrote to the Cerasi’s allegations despite the fact that it able on Judiciary Committee’s web site sentencing judge on the convicted felon’s be- had received another FLEOA letter alleging along with other Committee documents. half, even though the State Department in- that Agent Walinski had falsified witness CONCLUSIONS vestigators opined Mr. Hollingsworth was an statement in a separate internal affairs in- The three personnel cases, which the staff uncooperative defendant. Mr. Mancuso vestigation. reviewed, demonstrate disparate treatment signed the letter in his official capacity as Falsification of Witness Statements by Agent given to DCIS employees by senior manage- an Assistant Inspector General. Walinski in Johanson Case ment. Former DOD Inspector General Eleanor Prior to the adjudication of the Steakley Mr. Hollingsworth, a high ranking DCIS of- Hill stated that Mr. Mancuso did not advise case, Agent Walinski had falsified witness ficial, was convicted of a felony but pro- her of pertinent facts in the case. Ms. Hill statements against another DCIS agent. tected by Mr. Mancuso and allowed to retire had directed Mr. Mancuso to remove Mr. DCIS Agent Stephen Johanson had his un- 6 months later—on his 50th birthday—with a Hollingsworth from his position ‘‘as soon as dercover weapon stolen from his residence full law enforcement annuity. Mr. Walinski legally possible.’’ near Los Angeles, California while he was falsified reports to such a degree that several Mr. Mancuso directly assisted Mr. Hol- participating in the execution of a search witness statements appearing in his inves- lingsworth in obtaining over three quarters warrant in another California city. In the in- tigative reports never took place. He even of a million dollars in full federal law en- vestigation that followed the theft of claimed in sworn testimony in 1997 that a forcement retirement benefits six months Johanson’s weapon. Agent Walinski falsified DOD employee, whom he had interviewed after a felony conviction. OPM retirement more witness statements. His false reports and reported absent from her office due to experts, legal counsel at DOD’s Washington resulted in a recommendation that Agent ‘‘extended illness,’’ had ovarian cancer, de- Headquarters Service, and Inspector General Johanson be suspended without pay for 8 cal- spite the fact there was no evidence that this regulations all state that Mr. Mancuso had endar days for failing to secure and return person suffered from such a disease. Mr. options to remove this employee imme- an issued weapon. DCIS supervisors and rank Walinski received a cash bonus award weeks diately after conviction. In fact, the law, and file agents protested to management at after allegations about his falsified reports DOD regulations, and an OPM opinion all DCIS headquarters in Washington that reached senior DCIS management. DCIS suggest that Mr. Hollingsworth could have Agent Walinski’s interviews were either in- management never attempted to determine been removed based on the criminal conduct accurate or never took place. whether those allegations had merit, and Mr. alone, and not on criminal court procedures. FLEOA attorney Cerasi wrote a second let- Walinski was allowed to transfer to another The retirement benefits given to Mr. Hol- ter to top DCIS management supporting law enforcement agency—Treasury IG—with lingsworth were extremely generous, since rank and file agents’ complaints about Agent no record of accountability. federal law enforcement officials may retire Walinski’s reports in the Johanson case. Mr. Two other DCIS employees were the sub- at ago 50 instead of age 62, and computation Cerasi alleged that Agent Walinski has fal- ject of disciplinary action by DCIS manage- of their general schedule grade has law en- sified his interview of Agent Jon Clark. ment for significantly less serious offenses, forcement availability pay of up to 25% DCIS officials claim that Agent Walinski and in one case, based on no evidence. Mr. added in on top of regular pay. This resulted was reprimanded for ‘‘failing to show due Steakley, repeatedly and unjustly accused of in a convicted felon being able to obtain ap- diligence and accuracy’’ in reporting witness numerous misconduct charges, is now retired proximately $750,000.00 in additional annuity interviews in the Johanson case. Agent with a damaged reputation among the fed- payments (excluding cost-of-living allow- Walinski reported an interview of DCIS eral law enforcement community that was ances) as compared to what he would have Agent Clark that never took place. Despite undeserved. Similarly, Mr. Johanson was received had he been terminated imme- these allegations, personnel records indicate undeservedly punished for having a gun sto- diately after conviction and allowed only that Agent Walinski received a cash award— len from his residence during a burglary. non-law enforcement civil service retirement at least 18 days after rank and file agents This gun was issued to him by his own agen- benefits commencing at age 62 in the year had formally complained to senior manage- cy. The initial punishment proposed for Mr. 2008. ment at DCIS headquarters that Agent Johanson was based on false witness inter- Falsification of Witness Statements by Agent Walinski falsified reports. The staff could views and a distorted interpretation of dis- Walinski in Steakley Case find no evidence that DCIS management ever ciplinary guidelines. There were numerous claims of misconduct attempted to determine if the allegations The Office of the DOD Inspector General is made by Mr. Steakley in regard to the con- about Mr. Walinski’s reports had merit. In a position that requires a very high standard duct of the DCIS office of internal affairs. fact, immediately following the first of integrity, with equal treatment for all de- Several of Mr. Steakley’s allegations were Johanson investigation and while the re-in- partmental employees. When information is substantiated. vestigation was in progress, Mr. Walinski developed on the criminal misconduct of a There is credible evidence that at least one was assigned a leadership role in the inspec- senior employee such as Mr. Hollingsworth, agent assigned to DCIS internal affairs, tion of the field office where the complaints that employee should be removed ‘‘as soon as Agent Walinski, falsified a witness state- about his reports had originated. This could legally possible’’ to ensure that the morale ment in support of a tax evasion charge be viewed as a retaliatory measure to silence of all employees is maintained. When allega- against Mr. Steakley, and was reprimanded the agents who had ‘‘blown the whistle’’ on tions are made of misconduct such as against and reassigned for a similar problem in an- Agent Walinski. Mr. Walinski, the IG’s office should ensure other internal affairs case. Agent Walinski DCIS now records all witness interviews that allegations are professionally and thor- even acknowledged that the tax evasion for accuracy. Some DCIS Agents refer to this oughly investigated, and all discrepancies charge was ‘‘unresolved’’ and that his incon- new practice as ‘‘the Walinski rule.’’. are resolved. When allegations are made clusive findings were not made apparent in REPORT FORMAT against employees such as Mr. Steakley and his report to the DCIS Administrative Re- Mr. Johanson, charges should be inves- This report has been divided into three sep- view Board (ARB). tigated, witnesses should be accurately arate DCIS personnel cases as follows: The false tax evasion charge in which Mr. interviewed, and bias should not interfere Steakley was eventually exonerated was in- —The Case of Mr. Hollingsworth with the integrity or facts in the investiga- stigated by DCIS management, to include —The Case of Mr. Steakley tion. Mr. Mancuso, in an area in which DCIS had —The Case of Mr. Johanson If DCIS—under Mr. Mancuso’s manage- no authority or jurisdiction. The States of In addition, the report includes written ment—could not investigate its own employ- California and Virginia repeatedly informed comments from the Acting DOD IG, Mr. ees honestly and fairly, then how could the DCIS that the agency could not obtain Mr. Mancuso, along with an extensive list of the much larger Office of the DOD IG—if man- Steakley’s tax records without a court order source documents used in preparing the re- aged by Mr. Mancuso—be expected by the or authorization from the taxpayer involved. port. American people to investigate honestly and DCIS had neither. On September 27, 1999, Mr. Mancuso re- fairly misconduct and fraud within the en- In an interview with the Subcommittee quested that he be given the opportunity to tire Department of Defense? staff, Lt. Col. Greg McClelland, an inde- review this report prior to its release and to Given Mr. Mancuso’s poor judgment and pendent DOD IG investigator assigned to re- provide written comments. In response, the his irresponsible handling of the three cases view allegations by Mr. Steakley, character- Subcommittee Chairman, Senator Charles E. examined in this report, it is reasonable to ized the conduct of Agent Walinski in this Grassley, assured Mr. Mancuso that his writ- question: 1) Whether Mr. Mancuso should case as ‘‘egregious.’’ The Subcommittee staff ten response would be attached to the staff now be nominated and confirmed as the DOD

VerDate 29-OCT-99 03:16 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.005 pfrm01 PsN: S02PT1 S13644 CONGRESSIONAL RECORD — SENATE November 2, 1999 IG—an office that demands the highest the investigation by the U.S. State Depart- [See Attachment #3—Subcommittee standards of integrity, judgment, and con- ment. Mr. Hollingsworth stated to State De- memorandum of 07/16/99 interview with agent duct; and 2) Whether Mr. Mancuso should be partment law enforcement agents that he O’Brien] allowed to remain in the post of Acting DOD procured approximately eight to ten false Chronology of judicial and personnel actions in IG. In addition, given the evidence that Mr. identify documents, to include an inter- the case of Mr. Hollingsworth Walinski falsified several witness interviews, national drivers license and a priest ID, by 07/28/95: Larry J. Hollingsworth’s home is it is reasonable to question whether Mr. means of mail order. searched by U.S. State Department law en- Walinski should be assigned to a position in In April of 1995, U.S. State Department law forcement agents and he subsequently con- which he is responsible for conducting crimi- enforcement officials placed a photo of Mr. fesses to fraudulently applying for a U.S. nal or administrative inquiries. Hollingsworth in law enforcement bulletins Passport. [See Attachment #4—Time line RECOMMENDATIONS as an unidentified suspect in passport fraud. provided by DOD 7/27/95–9/20/96] the local Philadelphia office of DCIS notified 1. The Majority Staff recommends that 01/27/96: Larry J. Hollingsworth is indicted DCIS headquarters in Washington D.C. that Members consider a change in legislation re- in U.S. District Court on two felony counts. a photo of Mr. Hollingsworth was found in a garding federal law enforcement officers con- 03/18/96: Larry J. Hollingsworth pleads bulletin. Officials at DCIS in Washington victed of felonies. Consideration should be guilty and is convicted of a felony, 18 USC D.C. notified Mr. Mancuso who is turn imme- 1001. given to whether federal law enforcement of- diately notified Inspector General Eleanor 06/4/96: Convicted felon Larry J. Hollings- ficers should be immediately dismissed after Hill. Mr. Mancuso was then ordered by DOD worth is sentenced to 30 days imprisonment their conviction of a felony. on weekends, 2 years probation, 200 hours Under current law, agencies have consider- IG Eleanor Hill to notify the State Depart- community service and a $5,000.00 fine. [See able discretionary authority in determining ment Office of Inspector General. [See Attachment #1—Sentencing memo- Attachment #5—U.S. District Court Crimi- how to handle such cases. In the Hollings- randum date stamped 06/04/96] nal Docket] worth case, a series of personnel actions ap- [See Attachment #2—State Department In- 08/12/96: Larry J. Hollingsworth is notified proved by DOD Acting Inspector General vestigative Timeline] by DOD DCIS of a ‘‘Proposed Removal’’ and Mancuso raise serious questions about his in- given thirty days to respond. [See Attach- tegrity and judgment. The proposed change Statements made by State Department law en- forcement agent ment #6—DOD OIG notice of Proposed Re- in legislation could eliminate any discre- moval dated 08/12/96] tionary authority on the part of individual On July 16, 1999, the Subcommittee Major- 09/19/96: Larry J. Hollingsworth retires on law enforcement agencies in dismissing em- ity Staff interviewed Sean O’Brien, Special his 50th birthday citing a reason of ‘‘pur- ployees convicted of felonies. Agent with the State Department Diplo- suing other interests’’. [See Attachment #7— 2. The Majority Staff recommends that the matic Security Service. Agent O’Brien was DOD Notice of Personnel Action form 50–B Chairman forward this report to appropriate one of the agents assigned to the Hollings- dated 09/19/94] committees, the Secretaries of Defense and worth case. Agent O’Brien stated that there 09/20/96: Larry J. Hollingsworth’s attorney the Treasury and other officials who must were at least 12 overt acts of fraud per- notifies then DOD Assistant Inspector Gen- evaluate Mr. Mancuso’s fitness as a potential petrated by Mr. Hollingsworth over the eral Mancuso that he waives his right to ap- candidate to be DOD IG, as well as Mr. course of several years. Agent O’Brien felt peal the removal. [See Attachment #8—Let- Walinski’s continued assignment as a GS– that the actions of Mr. Hollingsworth were ter from Hollingsworth’s attorney to Mr. 1811 criminal investigator. disturbing in light of the fact that passport Mancuso dated 09/20/96] THE CASE OF MR. HOLLINGSWORTH fraud is usually committed in furtherance of DOD General Counsel claims conditional plea a more serious crime, and a credible motive Mr. Larry J. Hollingsworth, former GS–15 prevented removal of Mr. Hollingsworth had never been established. Director of internal affairs, DCIS, was con- On September 14, 1999, Mr. Mancuso and Mr. O’Brien added that family members of victed of a felony charge in 1996 in U.S. Dis- the Deputy General Counsel (Inspector Gen- the deceased boy, Charles Drew, whose iden- trict Court for the Eastern District of Vir- eral), Mr. Kevin Flanagan, stated to the Sub- tify was used by Mr. Hollingsworth, were ginia. Mr. Hollingsworth was never termi- committee that the reason Mr. Hollings- very upset and prepared to testify at trial. nated by DCIS and allowed to retire on his worth was never removed and allowed to re- Agent O’Brien also opined that various mo- 50th birthday—six months after a felony con- tire, was that his guilty plea was ‘‘condi- tions to dismiss the case were delaying tac- viction. He is currently receiving full federal tional’’ and that he could withdraw his plea tics used by Mr. Hollingsworth until he law enforcement retirement benefits total- at any time at his own initiative. reached his 50th birthday—when he could re- ing approximately $750,000.00 he would not The Federal Rules of Criminal Procedure tire with law enforcement benefits. otherwise have received had management ex- Rule 11(A)(2) states; ‘‘with the approval of The State Department Supervisor of the ercised other more reasonable options. the court and the consent of the government, Hollingsworth case, Special Agent Robert a defendant may enter a conditional plea of Background on felonious activity by Mr. Hol- Starnes, stated that DCIS management ini- guilty or nolo contendere, reserving in writ- lingsworth tially refused to let him examine the con- ing the right, on appeal from the judgment, According to State Department law en- tents of Mr. Hollingsworth’s government a review of the adverse determination of any forcement agents, Mr. Hollingsworth’s crimi- computer under the pretense that Mr. Hol- specified pretrial motion. A defendant who nal activity in this case commenced on or lingsworth may have had personal and/or prevails on appeal shall be allowed to with- about September, 1992, when he reviewed the classified material on a government com- draw the plea.’’ local obituaries in Florida and obtained the puter. Despite possessing a Top Secret secu- The plea agreement in this case acknowl- name of Charles W. Drew, who was born in rity clearance, Agent Starnes had to raise edges a conditional plea by Mr. Hollings- 1944 and died in 1948. Mr. Hollingsworth, with the possibility of a search warrant with worth reserving ‘‘his right to appeal the a Top Secret security clearance, requested DCIS management before they acquiesced Court’s adverse March 8, 1996 ruling denying from the State of Florida a copy of the death and allowed a consent search of the com- defendant’s motion to suppress his state- certificate, representing himself as the puter. ment to State Department Agents’’. The plea deceased’s half-brother. Mr. Hollingsworth DCIS management assigned DCIS Agent agreement also states; ‘‘the defendant know- leased a mailbox in Springfield, Virginia Paul Tedesco as the point of contact in this ingly waives his right to appeal any sen- under the alias of Charles and Maureen Drew case for the State Department. Relevant in- tence.’’ and Harold Turner. formation regarding Mr. Hollingsworth’s Therefore, Mr. Hollingsworth never had Mr. Hollingsworth then obtained a birth criminal conduct was provided by State De- unilateral authority to withdraw his plea at certificate for Charles Drew from the State partment investigators directly to DCIS anytime, as Mr. Mancuso and DOD General of Georgia and had it sent to the mailbox in Agent Tedesco during all criminal pro- Counsel argued. Their reason for not termi- Springfield, Virginia. Mr. Hollingsworth ceedings. Agent Tedesco also provided cer- nating Mr. Hollingsworth after conviction then leased another mailbox under the alias tified court documents to then Director of appears to be invalid. of Charles and Mary Drew in Arlington, Vir- Operations and current Director of DCIS [See Attachment #20—Rules of Criminal ginia. Mr. Holingsworth submitted an appli- John Keenan. These court documents de- Procedure 11(a)(1)] cation and received a social security card scribed the criminal conduct of Mr. Hollings- [See Attachment #21 Plea Agreement under the alias Charles Drew Jr. by posing as worth. Agent Tedesco stated that DCIS man- dated 03/15/96 page 3] the applicant’s father. Mr. Hollingsworth, agement was kept fully informed of the Mr. Hollingsworth was never removed by accompanied by his spouse, applied for and criminal conduct of Mr. Hollingsworth from DOD and as stated in the chronology, re- received a Virginia Department of Motor Ve- the time of his confession through sen- mains a convicted felon despite the numer- hicles identification card in the name of tencing. ous motions to dismiss. Federal Law, DOD Charles Drew. Using the DMV identification In the experienced opinion of State Depart- IG regulations, legal counsel at the DOD card in the name of Charles Drew, Mr. Hol- ment Case Agent Sean O’Brien, State De- Washington Headquarters Services (WHS) lingsworth applied for a U.S. Passport. It partment Special Agent Case Supervisor and OPM General Counsel stated that Mr. should be noted that his wife, Mrs. Jaureen Starnes and DCIS Case Liaison Agent Paul Hollingsworth could have been removed Hollingsworth, a DOD IG employee at the Tedesco, this fraudulent activity was most based on his criminal misconduct alone. The time, was never implicated or charged in this probably in furtherance of another crime misconduct must be proved with a ‘‘prepon- felonious activity. She was not a suspect in that was never discovered or proven. derance of the evidence’’ and not ‘‘beyond a

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.007 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13645 reasonable doubt.’’ Preponderance of the evi- maintain his security clearance. Further, tember 1996 at which time he would retire. I dence is a much lower threshold than a DCIS might have chosen to expedite his re- said he could retire now, but not under law criminal court procedure wherein criminal moval following Mr. Hollingsworth’s guilty enforcement. Mr. Seldon said he understood conduct must be proved ‘‘beyond a reason- plea’’. that, but there would be a substantial reduc- able doubt.’’ [See Attachment #12—OPM General Coun- tion.’’ Federal law states Mr. Hollingsworth could be sel opinion dated 09/13/99] [See Attachment #15—Memorandum for dismissed within 7 days Outstanding evaluation for Mr. Hollingsworth the record of Linda Martz dated 02/07/96] 5 U.S.C. 7513, (b), regarding removals of endorsed by Director of DCIS Mancuso Defendant Hollingsworth makes motion to dis- federal employees states: On August 18, 1999, approximately three miss case 1. At least 30 days advance written notice, weeks after Mr. Hollingsworth’s home was On March 12, 1996, Mr. Hollingsworth’s de- unless there is reasonable cause to believe the searched and he confessed to at least three fense attorney made a motion in U.S. Dis- employee has committed a crime for which a years of felonious activity (07/27/95), Mr. trict Court to dismiss the charges, citing Mr. sentence of imprisonment may be imposed, stat- Mancuso signed and approved an ‘‘out- Mancuso’s request for medical information. ing the specific reasons for the proposed action. standing’’ performance evaluation for Mr. He said Mr. Mancuso had ‘‘directed him to 2. A reasonable time, but not less than Hollingsworth. Mr. Hollingsworth replied on provide sufficient medical information which seven days, to answer orally and in writing the evaluation form; ‘‘I appreciate your com- will be reviewed by the medical consultant and to furnish affidavits and other documen- ments on my appraisal, especially in light of for the Office of Inspector General, to assist tary evidence in support of the answer. [See my recent actions.’’ him in making a decision on the proposed Attachment #9—5 United States Code 7513] [See Attachment #13—Employee Perform- suspension.’’ The DOD Time Line cites this law as rea- ance rating signed by Mr. Mancuso 08/18/95] [See Attachment #16—Motion to dismiss son for a 60 day delay in issuing a 30 day Mr. Mancuso places Mr. Hollingsworth on Paid indictment page 3 section 7] ‘‘proposed removal.’’ Mr. Hollingsworth had Leave Assistant United States Attorney comments on already served a considerable amount of sick leave status and use of a physician time in jail before the proposed removal was On November 22, 1995, Mr. Mancuso decided issued. to hold indefinite suspension of Mr. Hollings- On March 12, 1996, Assistant United States worth in abeyance and advised ‘‘Mr. Hol- Attorney Thomas G. Connolly for the East- DOD Inspector General Regulations state Mr. lingsworth he would be carried on sick leave ern District of Virginia stated in his legal Hollingsworth could have been terminated for any period of time that was supported by brief to U.S. District Court: after Indictment. acceptable medical documentation, carried ‘‘The defendant’s motion to dismiss the in- IGDR 1400.4, Displinary and Adverse Action on annual leave as long as he had an annual dictment is not only untimely, it is frivolous dated December 30, 1994, page 7, states an im- leave balance and requested such leave, and . . . The government (in the form of the mediate removal can be initiated ‘‘when the that the indefinite suspension would become United States Attorneys Office) was not agency has reasonable cause to believe that effective when his annual leave was ex- party to any negotiations concerning the de- an employee has committed a crime for hausted and he no longer met the require- fendants sick leave. In fact, the first time we which a sentence of imprisonment may be ments for sick leave.’’ head about this was on March 7, 1996, when imposed. Reasonable cause to believe is not [See Attachment #4—Time line provided defense counsel faxed us a letter detailing established by the mere fact either of an ar- by DOD 7/27/95–9/20/96] Dr. Holland’s findings.’’ rest or an ongoing agency investigation of Mr. Mancuso advises Mr. Hollingsworth to meet ‘‘The United States Attorneys Office had possible criminal misconduct. A criminal in- with a physician no opportunity, whatsoever to be heard in dictment will usually constitute reasonable the negotiations between Mr. Hollings- On November 22, 1995, ‘‘Mr. Mancuso ad- cause.’’ worth’s lawyers and the Department of De- vises Mr. Hollingsworth to schedule an ap- [See Attachment #10—IGDR—dated 12/30/ fense concerning whether Mr. Hollingsworth pointment with the Independent Medical 94, Page 7] should be granted sick leave because he was Evaluation (IME) physician. The agency DOD WHS Legal Counsel advises Mr. Hollings- allegedly suffering from depression a year- would approve sick leave through November worth may be terminated after his guilty and-a-half after he had committed the 30, 1995, and any request for additional sick plea crimes and 4 months after he had been leave would be held in abeyance pending re- caught.’’ On March 14, 1996, Gilda Goldsmith, legal ceipt and review of the additional medical [See Attachment #17—Opposition to De- counsel at the DOD WHS, advised that ‘‘the documentation.’’ fendant’s Motion to Dismiss page 3] indefinite suspension, which suspends Mr. [See Attachment #4—Time line provided Hollingsworth from duty until final disposi- by DOD 7/27/95–9/20/96] Attorney for Mr. Hollingsworth contacts DOD tion of criminal charges and any administra- Employee Relations one day after motion to Assistant United States Attorney opposes use of tive proceedings, does not bar the agency dismiss and complements Mr. Mancuso for physician as Defense Witness from terminating him based on his guilty assistance. On March 8, 1996, Assistant United States plea . . . the agency could remove Mr. On March 13, 1996, Linda Martz, DOD Em- Attorney Thomas G. Connolly for the East- Hollingworth for both the guilty plea and ployee Relations Specialists took a call from ern District of Virginia stated in his legal underlying conduct, but would have to prove Mr. Seldon, attorney for Mr. Hollingsworth. brief to the U.S. District Court in regards to the conduct by a preponderance of the evi- She stated; ‘‘Mr. Seldon wanted to know the testimony of the IME physician for the dence if the conviction is reversed.’’ what Larry’s sick and annual leave balances defense: [See Attachment #11—DOD WHS Legal were. .. . I went on to explain that when he ‘‘This testimony is not relevant to a deter- Counsel memo dated 03/14/96] was indicted the situation took on another mination of any issue to be tried in this case. OPM General Counsel cites other options avail- look. He said he understood and believed Mr. It is a patent attempt at jury nulifcation by able to DCIS management Mancuso did what he could be help Mr. Hol- presenting evidence in the hope of making The Subcommittee Majority Staff re- lingsworth’’. the defendant sympathetic to the jury. It is quested the assistance of OPM in deter- [See Attachment #18—Linda Martz memo a backdoor attempt to raise issues of mental mining whether Mr. Hollingsworth, a con- dated 03/13/96] condition prohibited by law; and it is preju- victed felon, was entitled to a federal law en- dicial, confusing, and misleading. This court Mr. Mancuso acknowledges Mr. Hollingsworth’s forcement retirement six months after con- should exclude any proposed psychiatric tes- criminal conduct was perpetrated in fur- viction and two months after serving his timony from evidence at trial.’’ therance of another unknown crime senence of jail on weekends. He received re- [See Attachment #14—Government’s mo- On September 14, 1999, during a Sub- tirement credit and remained in an em- tion to exclude psychiatric testimony page 2] committee Majority Staff interview regard- ployed status as Director of Internal Affairs ing the criminal misconduct of Mr. Hollings- durng the six months in question to include Mr. Seldon, Attorney for Mr. Hollingsworth, contacts DOD Employee Relations con- worth, Mr. Mancuso stated he now believes two months of jail time on weekends. that logically, the criminal misconduct of On July 20, 1999, DOD Personnel Director cerning retirement Mr. Hollingsworth appeared to be in further- Donna Seracino stated that Mr. Hollings- On February 7, 1996, the defense attorney ance of another crime. worth could not be immediately removed for Mr. Hollingsworth contacts DOD Em- after his guilty plea and felony conviction ployee Relations Specialist Linda Martz. She Mr. Mancuso writes letter to sentencing judge because ‘‘he had rights to due process under states the attorney said ‘‘he wanted to en- on behalf of Mr. Hollingsworth OPM guidelines’’. sure that his client was technically on the Mr. Mancuso wrote a letter dated April 29, On September 13, 1999, OPM General Coun- agency rolls. I said yes. Mr. Seldon said the 1996, to sentencing Judge Ellis on official sel Suzanne Seiden stated in her legal opin- U.S. Attorney wanted his client to plead DOD Assistant Inspector General stationary. ion: ‘‘Instead of seeking to remove him be- guilty to one felony count. He said he under- Mr. Mancuso wrote this letter ‘‘on behalf of cause of the criminal conviction, it is pos- stood that if the criminal matter ended and Mr. Hollingsworth . . . one of the few indi- sible that DCIS appropriately could have Mr. Hollingsworth was convicted, removal viduals in whom I placed complete con- charged him with, among other things, an was probable. He asked if that was correct. I fidence and trust.’’ In writing the letter, Mr. action under 5 U.S.C., 7513, on grounds of said most likely. He said his client’s hope Mancuso asked the judge to consider extenu- general criminal misconduct or failure to was to stay on the agency rolls until Sep- ating circumstances. For example, he told

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.009 pfrm01 PsN: S02PT1 S13646 CONGRESSIONAL RECORD — SENATE November 2, 1999 the judge that Mr. Hollingsworth took a half removal pending an oral reply to be made on ments to DCIS Director of Operations John day’s leave to file the fraudulent passport 09/13/96. Keennan throughout the judicial proceedings application. Mr. Mancuso said he was not [See Attachment #4 Time line provided by against Mr. Hollingsworth. These documents surprised by this action. He said: ‘‘Mr. Hol- DOD 7/27/95–9/20/96] were passed to senior DCIS management as lingsworth could have come and gone as he Mr. Mancuso grants requested extension and they became available. These documents pleased,’’ but he ‘‘took leave to commit a fel- schedules oral response for 09/23/96, four fully described the criminal conduct for ony.’’ Mr. Mancuso went on to say: ‘‘To this days after Mr. Hollingsworth’s 50th Birth- which Mr. Hollingsworth was being pros- day, there is no evidence that Mr. Hollings- day ecuted. Agent Tedesco described his relation- worth has ever done anything improper re- On August 26, 1996, Mr. Mancuso grants the ship with State Department investigators as lating to his duties and responsibilities as a extension request and schedules the oral ‘‘excellent,’’ resulting in a timely, accurate, DCIS agent and manager.’’ reply for September 23, 1996, the first avail- and professional flow of information between In concluding the letter, Mr. Mancuso able date because Mr. Mancuso claimed that the two law enforcement agencies. Agent added: ‘‘I do ask, however, that you consider he would ‘‘be on travel much of September Tedesco refutes any assertion that DCIS all these things as well as his stated remorse and will not be available to hear Mr. Hol- management was not informed during any and acceptance of responsibility for his ac- lingsworth’s oral response’’ until that date. part of the judicial process. tions . . . it is our intention to consider re- A review of Mr. Mancuso’s travel vouchers DOD Inspector General Eleanor Hill orders Mr. moval action against him after the conclu- suggests that the projected travel conflicts— Hollingsworth to be removed ‘‘as soon as le- sion of the criminal charges. In this regard, outlined in his August 26, 1996 memo—never gally possible’’ I would ask that you consider the severity of materialized and that he would have been Eleanor Hill was the DOD Inspector Gen- these administrative actions as you pro- available to hear the case at any point dur- eral during the Hollingsworth criminal pro- nounce sentencing.’’ ing the month of September—with several cedures. On September 21, 1999, Eleanor Hill The letter was signed; ‘‘Sincerely, Donald minor exceptions. During an interview on stated to the Subcommittee Majority Staff Mancuso, Director, Defense Criminal Inves- September 14, 1999, Mr. Mancuso was asked if that shortly after Mr. Hollingsworth con- tigative Service’’. he was aware of Mr. Hollingsworth’s birth- fessed, she had ordered IG personnel, includ- [See Attachment #19—Letter from Mr. day when he signed the August 26, 1996 ing Mr. Mancuso, ‘‘to remove Hollingsworth Mancuso to Judge Ellis dated 04/29/96] memo. Initially, he denied having that as soon as legally possible.’’ Mr. Mancuso comments on letter to Judge Ellis knowledge, but with coaching from Deputy DOD Inspector General Eleanor Hill was un- In a Majority Staff interview on September DOD General Counsel Flanagan, he admitted aware of several decisions by Mr. Mancuso 14, 1999, Mr. Mancuso claimed that the sta- that he did, in fact, know that Mr. Hollings- regarding Mr. Hollingsworth tionary used in the letter to Judge Ellis was worth’s 50th birthday was in September 1996. Ms. Hill stated she was unaware that DCIS ‘‘personal, bought with my own money’’ and [See Attachment #4 Time line provided by management initially refused to allow State not official DOD Inspector General sta- DOD 7/27/95–9/20/96] Department investigators a consent search tionary. It was pointed out to Mr. Mancuso Convicted Felon Mr. Hollingsworth retires with of Mr. Hollingsworth’s government com- that the letterhead had a government seal full federal law enforcement retirement ben- puter. which contained the words; ‘‘Inspector Gen- efits totaling over $750,000.00 Ms. Hill stated she was unaware that Mr. eral—Department of Defense.’’ In addition, On September 19, 1996, Mr. Hollingsworth Mancuso endorsed an outstanding evaluation Mr. Mancuso signed the letter in his official retired on his 50th birthday and first date of of Mr. Hollingsworth after his confession to capacity as an Assistant Inspector General. eligibility for federal law enforcement retire- criminal conduct. The letter was made a part of the sentencing ment, citing his desire ‘‘to pursue other in- Ms. Hill stated she was unaware that Mr. report by Judge Ellis. terests.’’ Mr. Hollingsworth currently re- Mancuso wrote a letter as an Assistant In- [See Attachment #19—Letter from Mr. ceives full federal law enforcement retire- spector General on official stationary to the Mancuso to Judge Ellis dated 04/29/96] ment benefits. sentencing judge on Mr. Hollingsworth’s be- [See Attachment #1—Sentencing memo- [See Attachment #7 notice of personnel ac- half. randum date stamped 06/04/96] tion] Hollingsworth Case—Attachments Assistant United States Attorney comments on According to OPM, if Mr. Hollingsworth lack of remorse by Mr. Hollingsworth had been removed immediately after his fel- 1. Sentencing Memorandum filed in U.S. ony conviction, he would have been entitled District Court, dated 06/04/96 On March 12, 1996, Assistant United States 2. State Department Investigative Time Attorney Thomas G. Connolly for the East- to an annuity commencing at age 62. Since Mr. Hollingsworth was not removed by DOD line ern District of Virginia stated in his legal 3. Subcommittee interview of State De- brief to U.S. District Court: after his conviction and was allowed to re- tire six months after his conviction at age partment Special Agent O’Brien ‘‘The defendant’s appreciation of the 4. Timeline provided by DOD 7/27/95–9/20/96 wrongfulness of his conduct in April of 1994 50, Mr. Hollingsworth immediately began re- ceiving a federal law enforcement yearly an- 5. U.S. District Court Criminal Docket has never been determined in any hearing at 6. DCIS Proposal for Removal which the United States Attorneys Office (or nuity of over $60,000. Not including cost of living adjustments, these annuities will total 7. Notice of Personnel Action any other government agency, including the 8. Letter from Mr. Hollingsworth’s attor- Department of Defense) was a party.’’ over 750,000.00 for 1996–2008—annuities he would not have received had DCIS manage- ney waiving right to appeal removal [See Attachment #17—Opposition to De- 9. Copy of 5 U.S.C. 7513 ment exercised other more reasonable op- fendant’s Motion to Dismiss page 3] 10. DOD IG Regulations on Disciplinary tions. Assistant United States Attorney comments on On September 20, 1996, Mr. Hollingsworth’s and Adverse Action Page 7 11. DOD General Counsel memo dated 3/14/ Mr. Hollingsworth’s mental state attorney ‘‘waives his right to any further 96 ‘‘Mr. Hollingsworth’s condition, whatever proceedings in connection with the proposed 12. OPM response to subcommittee request it is, is not found in DSM IV, the 886-page removal due to his retirement.’’ 13. Evaluation of Mr. Hollingsworth dated tome that lists every psychosis, neurosis, [See Attachment #8—Letter from Hollings- 08/18/95. syndrome, and personality disorder known to worth Attorney dated 09/20/96] man.’’ 14. Government’s motion to exclude De- Mr. Mancuso characterizes State Department fendant’s Proposed Psychiatric Testimony [See Attachment #14—Government’s mo- Investigators as ‘‘Horse’s Asses’’ tion to exclude psychiatric testimony page 5] 15. Memorandum of Linda Martz dated 02/ On September 14, 1999 the Majority Staff 07/96 Mr. Dupree, former Deputy Director of DCIS, interviewed Mr. Mancuso to review his role 16. Motion to Dismiss Indictment stated Mr. Hollingsworth was considered a in Mr. Hollingsworth’s retirement. 17. Opposition to Defendant’s Motion to cooperative defendant by DCIS management Mr. Mancuso claimed that State Depart- dismiss On August 24, 1999, Mr. Dupree, a former ment investigators did not brief DCIS on the 18. Memorandum of Linda Martz dated 03/ Deputy Director of DCIS, and under the di- details of the criminal case against Mr. Hol- 13/96 rect supervision of Mr. Mancuso, was inter- lingsworth until after sentencing. The State 19. Letter to Judge Ellis written by Mr. viewed by the Majority Staff. Mr. Dupree re- Department’s failure to share this informa- Mancuso on behalf of Mr. Hollingsworth viewed proposals to remove DCIS employees tion in a timely manner was another reason dated 04/29/96 for misconduct based on internal investiga- for delay in removal action against Mr. Hol- 20. Rules of Criminal Procedure 11(a)(1) tions. He characterized Mr. Hollingsworth as lingsworth. Mr. Mancuso characterized State 21. Plea Agreement dated 03/15/96 a ‘‘cooperative defendant’’. Mr. Dupree stat- Department investigators in this case as WALINSKI: CRIMINAL INVESTIGATOR, DCIS ed that it would have been easier to remove ‘‘Horses’ Asses.’’ INTERNAL AFFAIRS Mr. Hollingsworth if he had misused a gov- DCIS Agent Tedesco keeps DCIS management Mr. Matthew A. Walinski worked at the ernment vehicle. informed and complements performance of Defense Criminal Investigative Service 9/13/96—Mr. Hollingsworth requests extension on State Department investigators in the Hol- (DCIS) as a criminal investigator (GS–1811) proposal removal lingsworth case from August 1987 through 1998. Since Janu- On August 23, 1996, Mr. Hollingsworth asks As stated previously, DCIS Agent Tedesco ary 1999, he has been employed as a criminal Mr. Mancuso for an extension of his proposed provided all relevant certified court docu- investigator (special agent) in the Office of

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.011 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13647 the Inspector General at the Department of Mancuso and Dupree would know about it. Steakley she became very ill and was off the Treasury. His assigned duties at the When Walinski completed his report of in- work for an extended period of time. Because Treasury Department include investigating vestigation, it would usually be forwarded up of her illness she was unable to follow-up employee misconduct and fraud. Although the chain of command by Hollingsworth to concerning SA Steakley and his move as Walinski was promoted to the grade of GS–14 an Administrative Review Board (ARB). The would be her normal practice. Normally, at DCIS in August 1991, he accepted a reduc- ARB then made recommendations. Either Mrs. Gianino makes sure that state income tion in grade to GS–13 at the Treasury De- Mancuso or Dupree would review those rec- taxes are withheld from the state where the partment. He told the Subcommittee on Sep- ommendations and make the final decision individual’s duty assignment is located, es- tember 8, 1999 that he left DCIS because he on what—if any—disciplinary action was pecially a state as strict as California. was informed by the DCIS Director Keenan needed. In the Spring of 1993, after her return from that his goal of becoming a manager was un- While assigned to DCIS’ office of internal the extended illness, Mrs. Gianino started to attainable. review, Walinski was tasked to complete reconcile the payroll records for the Defense DCIS Internal Affairs about 30 ‘‘administrative inquiries’’ con- Criminal Investigative Service. During this cerning allegations of misconduct by DCIS reconciliation she reviewed and compared In June 1999, the Subcommittee received a agents. The complaints about the falsifica- the permanent duty station location for each complaint from a former DCIS agent that tion of his reports pertain to two ‘‘adminis- employee from their Notification of Per- Walinski had falsified official reports of in- trative inquiries’’ conducted by Walinski in sonnel Action Standard Form 50; the state vestigation while employed at DCIS. The 1993 and 1994 as follows: (1) the tax fraud case code of each employee utilized by the Air complaints about the falsification of reports involving Special Agent (SA) William G. Force for deductions for state income taxes; by Walinski relate to investigations he con- Steakley—Administrative Inquiry 91; and (2) and the current mailing address for each em- ducted while assigned to DCIS’ Program Re- Stolen gun case involving Special Agent ployee. She then discovered that SA view and Analysis Directorate. This office is (SA) Stephen J. Johanson—Administrative Steakley was permanently assigned to Cali- known informally as ‘‘internal affairs.’’ Inquiry 108. fornia, had a state tax code for Tennessee, Walinski was assigned to internal affairs The purpose of this portion of our review and a mailing address in Virginia. Mrs. from August 1991 until July 1994. was to assess the validity of the allegations Gianino stated that she brought this discrep- Throughout Walinski’s tour of duty in the against Walinski and to search for the an- ancy to the attention of DCIS management office of internal affairs, the unit was headed swers to three questions: (1) Did Walinski as the Air Force considers this situation to by Mr. Larry J. Hollingsworth. As Director falsify his reports on the Steakley and be unacceptable under applicable payroll of internal affairs, Hollingsworth held a key Johanson cases? (2) If Walinski falsified re- guidelines. position in DCIS’s organizational structure— ports, did senior management at DCIS know Mrs. Gianino said that in retrospect she along with the Director (Mancuso), Deputy about it? And (3) If DCIS management knew felt that both SA Steakley’s letter and the Director (Dupree), and the Director of Oper- about it, did management take appropriate subsequent telephone call were vague and ations (Keenan). Though important internal corrective action? very misleading.’’ affairs was a small office. It normally con- To answer the three questions, the Major- [See Amendment 1, Witness Interview/ sisted of three investigators (Hollingsworth, ity Staff examined all pertinent General Gianino] Bonnar, and Walinski). However, the office Counsel, IG, and U.S. Office of Special Coun- DCIS Contacts State Tax Authorities could be augmented—as needed—with special sel (OSC) files, including reports of inves- agents from the field. Based on the information provided by tigations and E-mails. The staff also con- Gianino, DCIS officials, including Walinski Hollingsworth directed the DCIS office of ducted a number of separate interviews. internal affairs from April 1991 until his re- and Hollingsworth, contacted the depart- tirement in September 1996, according to a The Case of Mr. Steakley ments of taxation in the states of California document provided by the IG’s office. That On May 11, 1993, Walinski opened the tax and Virginia to determine whether Steakley Hollingsworth was technically listed as the evasion case against Steakley. This was Ad- had unpaid income tax liabilities in either director of internal affairs until his retire- ministrative Inquiry 91. It was opened state. In addition, they contacted the State ment in September 1996 defies under- ‘‘based on information that SA Steakley of Tennessee to determine whether Steakley standing, since Hollingsworth was convicted made misleading statements to the DCIS was a resident of that state. of a felony (18 USC 1001) in March 1996 and payroll support activity regarding his actual DCIS made repeated attempts to obtain in- sentenced to 30 days in jail on the weekends place of residence in an apparent effort to formation on Steakley’s tax obligations in in June 1996. circumvent his state income tax obliga- California and Virginia. Letters were sent to The authorities, who conducted the inves- tions.’’ the tax authorities in both states on July 27, tigation (Bureau of Diplomatic Security) of [See Attachment 1—page 1 of Report of In- 1993, July 30, 1993 and December 2, 1993. The Hollingsworth’s criminal activities, believe vestigation (ROI)] letters were followed up by telephone calls. Hollingsworth committed about 12 overt acts The foundation for Walinski’s ROI on the Access To Tax Records Blocked of fraud between October 1992 and April 1994. Steakley tax fraud case was his interview In a memo dated December 23, 1993, The 12 alleged overt acts of fraud committed with a payroll specialist at Bolling AFB, Walinski reported that he was unable to ob- by Hollingsworth were perpetrated while he Washington, D.C.—Mrs. Nancy Gianino. At tain any information from Virginia on was the director of DCIS’ office of internal the time, Gianino was responsible for han- Steakley’s tax liabilities. Walinski reported: affairs. Hollingsworth’s criminal conduct dling all DCIS payroll matters. Walinski’s On December 22, 1993, an official in Vir- while director of internal affairs must inevi- official witness interview report, dated June ginia’s Department of Taxation informed tably raise questions about the overall integ- 1, 1993, states that Gianino was interviewed DCIS: The Commonwealth of Virginia will rity of the work performed by this office at Bolling AFB on May 21, 1993 ‘‘concerning not acknowledge or provide documentation while Hollingsworth was director. her knowledge of the payroll deductions of to generic tax liability issues unless the Mr. Thomas J. Bonnar was the Assistant SA Steakley.’’ writer of the correspondence is the Common- Director of Program Review. Bonnar was Mr. Gianino Interview wealth of Virginia taxpayer . ... . Per Com- Walinski’s immediate supervisor. Since the Gianino interview is such a cru- monwealth of Virginia Statute the informa- While Hollingsworth was in charge of the cial piece of evidence in evaluating the accu- tion in question could not be released to day-to-day operations of the office of inter- racy of Walinski’s reports, it is quoted here DCIS because DCIS was not the taxpayer in nal review, the DCIS Director, Mr. Donald in its entirety: question.’’ Mancuso, exercised overall management con- ‘‘Mrs. Gianino said that sometime in late [See Amendment 1, Contact Report with trol of all internal investigations. As DCIS November 1991 she received a letter from SA Department of Taxation, Commonwealth of Director, Mancuso was the person chiefly re- Steakley which instructed her to discontinue Virginia] sponsible for the conduct of internal inquir- payroll withholding on SA Steakley’s salary In an E-mail message to his supervisor, ies. His position description (DDES0466) by the Commonwealth of Virginia. After re- Bonnar, on July 8, 1994, Walinski reported states under ‘‘Major Duties,’’ paragraph (1): ceiving the letter, which is appended as at- that identical restrictions applied to access Mancuso ‘‘provides staffing and direction for tachment 1, she contacted SA Steakley via on individual tax liability data in California. the conduct of internal investigations, as telephone and he informed her that he was Walinski reported: needed.’’ Once allegations were received being transferred and had, in conjunction On May 5, 1994, California tax authorities about potential misconduct by DCIS agents, with his transfer, established residency in informed DCIS: By law, California can not Mancuso and the Deputy DCIS Director, Mr. the State of Tennessee. At the time she release any information concerning an indi- William Dupree, would usually decide if an thought it was strange that an employee who vidual taxpayer without a court order or a inquiry would be conducted, and what its lived and worked in Virginia could move his release from the individual in question.’’ scope would be. As a rule, those decisions residency to another state, but because SA [See Attachment 1, Contact Report with were reached in consultation with Hollings- Steakley told her he was being transferred in California Franchise Tax Board] worth. December 1991 she was not concerned. On De- DCIS Continues to Pursue Tax Data Mancuso and Dupree would normally re- cember 11, 1991, Mrs. Gianino changed SA Even though DCIS was prohibited by state ceive periodic briefings or status reports on Steakley’s state tax code from Virginia to law from obtaining information on each internal investigation still in progress. Tennessee. Mrs. Gianino stated that very Steakley’s state tax liabilities, DCIS Direc- If a problem arose during an inquiry, shortly after her discussions with SA tor Mancuso and Hollingsworth pressed

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.014 pfrm01 PsN: S02PT1 S13648 CONGRESSIONAL RECORD — SENATE November 2, 1999 Walinski to find a way to obtain that infor- against his client. The letter was dated Feb- that ‘‘SA Steakley has a tax liability to the mation. ruary 22, 1994 and hand delivered to Dupree. State of California and he took overt steps During an interview on August 24, 1999, Mr. Ambrose stated: to avoid paying this tax from December 1991 Hollingsworth reacted strongly to the sug- ‘‘For tax year 1992, based on a determina- through February 1993.’’ The Board’s report gestion that DCIS lacks authority to obtain tion that Mr. Steakley was a resident of Ten- was signed by James J. Hagen, Special Agent information on Steakley’s unpaid state tax nessee, I prepared three (3) state income tax in Charge. liabilities. He insisted that DCIS had all the returns for the Steakleys, one resident state [See Attachment 4, page 2] authority it needed to get the job done. He income tax return for Virginia and two (2) Tax Fraud Charges said: ‘‘I could have done that investigation.’’ nonresident state income tax returns for Vir- On August 4, 1994, after reviewing the Both Mancuso and Hollingsworth were for- ginia and California. In determining how to ARB’s recommendations, DCIS management merly employed criminal investigators at complete those returns, I reviewed the tax issued Steakley a ‘‘Notice of Proposed Sus- the Internal Revenue Service. instructions published by the respective pension.’’ The notice was signed by Mr. John Mancuso’s E-mail to Hollingsworth on state tax agencies and consulted with per- F. Keenan, Director of Investigative Oper- July 7, 1994 demonstrates something more sonnel at those agencies.’’ ations. Mr. Keenan was also previously em- than a passing interest in the Steakley tax [See Attachment 3] ployed by the Internal Revenue Service as a evasion case. Mancuso’s message conveys a Tennessee Residency special agent. He is the Director of DCIS sense of urgency on the need to obtain A DCIS records check in Tennessee did today. Steakley’s state tax data. It also seems to show that SA Steakley owned two homes in Mr. Keenan rejected the ARB’s rec- suggest that DOD legal counsel may have ad- the state; was registered to vote there and, ommendation to remove Steakley. Instead, vised DCIS not to pursue tax fraud charges in fact, voted in the November 1992 general he proposed that SA Steakley be ‘‘suspended against Steakley. Mancuso made this re- elections; and applied for and received a without pay for fourteen (14) calendar days.’’ quest: state driver’s license. Mr. Walinski’s report The proposed suspension was based on: (1) SA ‘‘Please copy me on all transmittals be- of investigation contains the general guide- Steakley’s failure to pay income taxes in the tween our office and the states of California lines in Tennessee tax law that are used as states of California and Virginia; and (2) SA and Virginia relative to Mr. Steakley’s the standard for determining whether a per- Steakley’s failure to comply with Executive taxes. It has been a ridiculous amount of son can claim they are a resident of the Order 12730 [Section 101, paragraph (1)] that time since you told me that we were waiting state. According to the information con- requires employees to pay federal, state, and to hear back from them. At the time of our tained in Walinski’s report, Steakley ap- local taxes—‘‘that are imposed by law.’’ last discussion I directed you to document pears to meet most of the state residency re- [See Attachment 5, page 1] your contacts so that I could refer to them if quirements. In presenting their case against Steakley, some quick action did not ensue. I’ve spoken No Proof of Tax Fraud both Mr. Keenan and the ARB relied heavily to OGC [Office of the General Counsel] and I on Walinski’s reported interview of Gianino. At the conclusion of Walinski’s investiga- think I can get their support despite Perkul Key portions of that interview were incor- tion, DCIS had no credible evidence or proof [Deputy General Counsel, Washington Head- porated in both memos. For example, after that Steakley had unpaid tax liabilities in quarters Services] and crew.’’ reviewing the communications between ‘‘I’d also like to start making phone calls either California or Virginia. Steakley and Gianino in 1991 about payroll to the two states and finding out what In our interview on September 8, 1999, deductions—as summarized in Walinski’s re- they’re doing with our information.’’ Walinski acknowledged that his report of in- port, Keenan’s memo cites her alleged rec- [See Attachment 1, E-mail from Mancuso vestigation on the tax evasion case against onciliation of DCIS payroll records as the to Bonnar and Hollingsworth] Steakley was inconclusive and unsubstan- event that triggered the whole investigation: When asked by an independent DOD inves- tiated. ‘‘In the spring of 1993, during a reconcili- tigator, Mr. Greg McClelland, why DCIS Walinski characterized the tax fraud case ation of payroll records for DCIS, it was dis- would pursue tax charges against Steakley against Steakley as ‘‘an unresolved case.’’ covered that you were permanently assigned when prohibited by state law from obtaining The investigation had serious shortcomings: to California, had a state tax code for Ten- that information, Mancuso replied: ‘‘We’ll ‘‘We couldn’t nail him,’’ Walinski said. nessee, and a mailing address in Virginia. pursue anything that goes to the integrity of Walinski’s inconclusive findings are not ap- This discrepancy was brought to the atten- the agent.’’ parent in his report. In fact, the report sug- tion of DCIS management as the Air Force [See Attachment 2, Greg McClelland inter- gests DCIS had an airtight case against considers this situation to be unacceptable view, March 13, 1997, p. 35] Steakley. Walinski also claims Mancuso and Mancuso’s reply to McClelland’s question Dupree were aware of the flaw. Despite these under applicable payroll guidelines. [See Attachment 5, page 2] in March 1997 suggests that he may have known deficiencies, Walinski said that he known that DCIS lacked authority to gain was ‘‘not surprised’’ to learn that the ARB Adjudication—Charges Dropped access to Steakley state tax records. During Board had subsequently recommended that On October 25, 1994, Mancuso’s deputy, an interview on September 14, 1999, Mancuso Steakley ‘‘be removed from his position at Dupree, informed Steakley that the tax provided a completely different answer to es- DCIS’’ for failing to meet his state tax obli- fraud charges against him would be dropped. sentially the same question. He was asked gations—a recommendation based on In a memo addressed to Steakley, Mr. why DCIS would pursue charges against Walinski’s incomplete report. ‘‘That’s just Dupree attempted to provide an explanation Steakley in an area—individual state tax ob- the way DCIS did things,’’ he said. for his decision to drop the charges: ligations—where it had no authority or juris- In our interview on September 14, 1999, ‘‘I have considered the written response diction to operate. He claimed ignorance. He Mancuso contradicted Walinski’s assertion submitted by your representative, Mr. replied: ‘‘I did not know that DCIS was not that management knew the tax case against Luciano Cerasi, as well as the oral response authorized access to individual state income Steakley was weak. Mancuso insisted that presented by you and Mr. Cerasi on October tax data.’’ he was not aware of the lack of credible evi- 20, 1994. Based on the information you pro- Walinski Complains about Pressure on Tax dence to support tax evasion charges that vided concerning the filing date of October 15 Data were eventually brought against Steakley. for the state of California, I have decided He said: ‘‘I didn’t know about that.’’ that the charges are not substantiated. One day after Mancuso’s E-mail to Hol- Therefore, it is my decision to overturn the lingsworth—July 8, 1994, Walinski com- Decisions on Tax Investigation Questioned proposal to suspend you for 14 days.’’ plained about the pressure from Mancuso to The staff does not understand why [See Attachment 6] Mancuso and Dupree decided to pursue the his supervisor, Bonnar. In this E-mail, Dupree’s explanation seems to suggest that tax evasion charges given the prohibitions in Walinski stated: the charges were dropped because the Cali- ‘‘I do not understand what he [Mancuso] place that effectively blocked access to fornia’s state tax filing deadline had not yet wants us to do. . . . Without a release from Steakley’s state tax records. If DCIS be- arrived. His explanation is difficult to com- Steakley, which both he and his attorney(s) lieved that this matter needed further inves- prehend. Senior DCIS officials had consist- stated will not be provided or a court order tigation, it should have referred the matter ently claimed that Steakley’s misconduct of some kind there is nothing else that I can to an external organization that had the au- was ‘‘an integrity issue.’’ For example, in his do. I am sorry!’’ thority and jurisdiction to examine those memo dated August 4, 1994, Keenan told [See Attachment 1, Walinski E-Mail to records and determine if Steakley had un- Steakley: Bonnar] paid tax liabilities. In the absence of that in- ‘‘I find you have violated the trust placed Steakley’s Tax Attorney Responds formation, the tax evasion charge would be in you as a employee of the OIG [Office of DCIS attempted to interview SA unjustified. the Inspector General].’’ Steakley’s tax accountant/lawyer, Mr. John ARB Board Recommends Removal [See Attachment 5, page 3] T. Ambrose, but Steakley refused to waive The DCIS ARB met on February 7, 1994 to It very difficult to reconcile Dupree’s ex- attorney-client privilege, and Mr. Ambrose consider the Steakley tax evasion case. planation for dropping the charges with the refused to be interviewed. However, after fur- In a memo dated March 7, 1994, the ARB questions raised about Steakley’s integrity— ther discussion, Steakley’s tax attorney pro- recommended that SA Steakley ‘‘be removed particularly since Dupree’s memo was signed vided DCIS with a letter addressing various from his position with DCIS for violating Ex- ten days after the California filing deadline tax issues bearing on the potential charges ecutive Order 12674.’’ The Board concluded had passed.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.015 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13649 FLEOA’s Allegations Against Walinski accusations in his report. How am I ever allegations ‘‘were without merit,’’ and the During the adjudication process on tax going to trust anybody coming over here case was closed in January 1999. fraud charges, Steakley was represented by [from that office] again.’’ [See Attahcment 10, IC letter to PCIE, an attorney with the Federal Law Enforce- [See Attachment 2, Telephone Conversa- January 8, 1999. page 2.] ment Officers Association (FLEOA), Mr. tion between William G. Steakley and Nancy McClelland’s Investigation Luciano A. Cerasi. Gianino, September 8, 1994—Tape Tran- On March 27, 1996—two months before Hill As Steakley’s defense counsel, Cerasi di- scription, page 78] initially referred the matter to the PCIE, she rected a 10-page letter to Dupree in response DCIS Rejects Request for Re-Investigation attempted to launch an investigation of to the proposed notice of suspension issued Except for what appears to be an exchange Steakley’s allegations. This investigation to Steakley in August 1994. Cerasi’s letter of perfunctory phone calls in 1995, requests continued while Hill worked with PCIE/OSC was hand-delivered to Dupree on September for an independent review of Walinski’s re- to assume responsibility for the investiga- 15, 1994. Cerasi argued that ‘‘the proposed ad- port were largely ignored—and finally dis- tion. The job was assigned to the IG’s Office of verse action against SA Steakley must be re- missed—by senior DCIS management. An- Departmental Inquiries—an organization scinded due to a lack of preponderant evi- other three years would pass before that is separate from DCIS—and more inde- dence to support the charges.’’ Steakley’s allegations about Walinski would pendent, though both offices report to the In offering a spirited defense of his client, be subjected to an independent review. same boss—the DOD IG. Mr. Dennis Cullen Cerasi, who represents rank and file agents, IG Request for Independent Review was initially assigned as the case action offi- also raised explosive allegations about the The independent review was triggered by a cer on April 2, 1996, but Mr. Greg McClelland accuracy of the investigative report under- series of letters from Steakley to Ms. Elea- was placed in charge of the internal inquiry lying the tax evasion charges. He alleged nor Hill, DOD IG, and to Senator Fred on December 12, 1996. that Walinski’s report contained ‘‘false, mis- Thompson. These letters were dated Feb- Between January and June 1997, leading, and fabricated investigative mate- ruary 9, 1996 and March 12, 1996. In these let- McClelland conducted a very extensive set of rial.’’ ters, Steakley renewed his allegations that interviews. The staff has examined the tran- Cerasi alleged that Walinski had ‘‘fab- ‘‘Walinski and Hollingsworth had ‘‘prepared scripts of McClelland’s interviews and be- ricated the interview in another [Johanson] fabricated reports.’’ They had ‘‘falsely ac- lieves that McClelland conducted a very case.’’ He alleged that Walinski ‘‘completely cused him of tax fraud,’’ he alleged. These thorough and credible investigation. He fabricated the results of his interview with letters also put a new twist on the allega- gathered all pertinent information needed to Mrs. Nancy Gianino.’’ He referred to tions. Steakley now alleged that ‘‘Walinski prepare an independent report on Steakley’s Walinski as ‘‘management’s pit bull.’’ He stated directly that the entire matter was allegations. While McClelland actually began said Walinski was ‘‘willing to fabricate in- directed by Mancuso and Dupree.’’ drafting a report, it was never finalized. vestigative information to destroy the career [See Attachment 9, Steakley letters to Hill Once the OSC agreed to assume jurisdiction of a subject of an investigation.’’ Cerasi and Sen. Thompson multiple pages] over the case on June 3, 1997, McClelland was urged Dupree to re-open the case and re-in- directed to terminate his effort and transfer vestigate the entire matter. DOD IG Refers Case to PCIE all materials to the OSC. Even though [See Attachment 7, pages 2 and 3] Since Steakley’s allegations were ‘‘long- McClelland’s report was never finalized, his Cerasi’s allegations about Walinski’s re- standing in nature and involve a number of files contain important information bearing port on the Steakley case in September 1994 individuals in various parts of the IG organi- on the allegations against Walinski—infor- followed allegations and complaints, which zation,’’ Hill concluded that her office was mation that was completely ignored by OSC. surfaced two months earlier, about not capable of conducting ‘‘an objective in- McClelland’s Investigative Plan Walinski’s report on the Johanson stolen ternal investigation of the allegations.’’ She The guidance given to McClelland was gun case. The Johanson case is discussed in said it simply was ‘‘not feasible.’’ Con- clear. He was to investigate all the allega- the next section of this report. sequently, on May 23, 1996, she referred the tions raised by Steakley, including ‘‘alleged Steakley’s Request for Re-Investigation entire matter to the President’s Council on false statements’’ by a DCIS investigator. On Integrity and Efficiency (PCIE) for further the tax fraud inquiry, he intended to address On October 20, 1994, both Cerasi and review. Steakley were given an opportunity to this issue: ‘‘Did DCIS fabricate an ethics vio- [See Attachment 10, Hill’s letters to PCIE lation [suspected tax fraud] against Mr. present an oral response to the tax evasion and Senator Thompson, May 23, 1996, page 1] charges. During the oral rebuttal session in Steakley?’’ He planned to ‘‘review applicable PCIE Response Dupree’s office, Steakley followed up on regulations’’ to determine whether ‘‘officials Cerasi’s written request for a ‘‘reinvestiga- On October 16, 1996—five months after acted within the scope of their authority.’’ tion of this whole Walinski file.’’ Steakley Hill’s request was made, the PCIE returned His investigative plan called for questioning requested ‘‘an internal investigation of SA the case to the DOD IG ‘‘for appropriate han- Gianino first. If warranted—based on infor- Walinski’s actions.’’ Steakley stated once dling,’’ because Steakley’s complaints con- mation obtained from Gianino, he would again ‘‘he had proof that SA Walinski had cerned IG employees—not the IG herself. then interview other DCIS officials as fol- fabricated the results of the administrative [Attachment 10, PCIE letter to Hill, page 2] lows: Walinski, Hollingsworth, Dupree, and inquiry involving his state income taxes.’’ Following another request from the DOD IG Mancuso. [See Attachment 11, page 3] [See Attachments 8, page 1] on February 20, 1997, the Integrity Com- mittee of the PCIE agreed to review Gianino Steakley’s ‘‘Proof’’ Steakley’s allegations. In her final request, On January 28, 1997, McClelland inter- The ‘‘proof’’ referred to by Steakley was a Hill again expressed frustration over her in- viewed the key witness—Gianino—regarding taped telephone conversation he had with ability to conduct an independent review: the contents of Walinski’s reported interview Gianino on September 8, 1994 about ‘‘Our attempts to conduct an impartial in- of her on May 21, 1993. In this interview, Walinski’s reported interview of her on May ternal inquiry have been hampered by the in- Gianino disputes and contradicts virtually 21, 1993. This tape was subsequently provided creasing number of senior managers who every point raised in Walinski’s report. to and transcribed by the DOD IG, and a have recused themselves as a result of the Walinski’s report declares that the inter- copy of the transcription is located in the growing allegations, including the Director view took place at Gianino’s Bolling AFB of- files of the U.S. Office of Special Counsel [Mancuso] of the office which would be inves- fice on May 21, 1993. Gianino, by comparison, (OSC). tigating this matter internally.’’ testified that she had just one telephone con- The Majority Staff reviewed the tape tran- [See Attachment 10, PCIE letter to Hill, versation with Walinski; that he called her; scription in the OSC files. October 16, 1996] but she was unable to remember when the Gianino’s statements on this tape appear Case Referred to OSC call took place. to indicate that Walinski fabricated the en- McClelland questioned Gianino about each tire Gianino interview. Steakley read her On June 3, 1997, the case was finally re- individual part of Walinski’s report of inter- Walinski’s report of interview. She said that ferred to OSC for investigation. view. McClelland read her each sentence in every statement in Walinski’s report, which [See Attachment 10, Hill memo to PCIE, Walinski’s report. In each case, he asked was attributed to her, was ‘‘not true.’’ She February 20, 1997; OSC letter to DOD IG, Gianino: ‘‘Is that accurate?’’ And in each never had an extended illness, and her leave June 3, 1997; IC letter to PCIE, January 8, case, Gianino replied: ‘‘I did not call him.’’ records would prove it. She said Walinski 1999, page 2] Or ‘‘that’s not a true statement.’’ Or ‘‘that’s made several visits to her office to examine OSC Report and Conclusions not true.’’ Or ‘‘I did not do that.’’ On the Steakley’s file. She gave him the file, and he On July 21, 1998, the OSC completed a re- question of sick leave between 1991 and 1993, took notes from the file. [Walinski probably port on Steakley’s allegations about senior Gianino testified: ‘‘I had maybe a couple of made these visits in March or April 1993 DCIS officials. The OSC report focused pri- hours of sick leave. But I was not out for a when checking Steakley’s time and attend- marily on prohibited employment practices long extended period of time due to illness.’’ ance records during the investigation of and not whether Walinski had falsified offi- [See Attachment 2, Gianino interview, 1/28/ Steakley’s accident with a government vehi- cial reports on investigation. 97, pages 4–12] cle in Administrative Inquiry 86]. At the con- Despite a mountain of evidence pointing to Gianino’s Leave Records clusion of the tape, Gianino said: ‘‘Walinski a number of unresolved issues, the OSC noti- The staff examined Gianino’s leave records came over here with his badge and puts false fied DOD in December 1998 that Steakley’s for 1991 through 1993.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.018 pfrm01 PsN: S02PT1 S13650 CONGRESSIONAL RECORD — SENATE November 2, 1999 In his report of investigation, Walinski [See Attachment 2, Walinski interview, 2/ formation. Walinski claims he contacted states: ‘‘Very shortly after her discussions 14/97, pages 63–65] Gianino on the telephone and then went over with Steakley [in late 1991], she [Gianino] be- During the second interview on June 6, to her office at Bolling AFB. At this meet- came very ill and was off work for an ex- 1997, McClelland attempted to determine if ing, she provided the earnings data that he tended period of time. Because of her illness there was any concrete linkage between needed to calculate Steakley’s unpaid state she was unable to follow-up concerning Walinski’s handwritten notes of the Gianino taxes for the Board. He said there were de- Steakley. .. . In the Spring of 1993, after her interview and the final version of the inter- tailed notes containing the tax calculations. return from the extended illness, Mrs. view that accompanied his report of inves- He further stated that some of those notes Gianino. . . .’’ tigation. McClelland determined that there were in Gianino’s handwriting, and they Walinski’s assertions about Gianino’s ab- was essentially no linkage. Not one impor- prove that the Gianino interview actually sence from her Bolling AFB office due to an tant fact contained in the final report could took place as he reported. extended illness are inconsistent with her of- be traced back to Walinski’s handwritten [See Attachment 14] ficial leave records. notes. And Walinski agreed with Walinski offered essentially the same ex- Those records show: (1) Gianino used 54.5 McClelland’s assessment. The Majority Staff planation to McClelland in testimony on hours of sick leave in 1992; and (2) she used .5 examined those notes and agreed with February 14, 1997, and June 6, 1997. hours in the first half of 1993 and a total of McClelland’s assessment. Walinski’s notes Walinski’s explanation does not stand up 15 hours of sick leave for the balance of the are undated and cannot be considered proof to scrutiny for three reasons: year. that the interview took place. McClelland First, Walinski’s handwritten notes that [See Attachment 12] asked Walinski about the disconnect. he purportedly took during his interview of Gianino on May 21, 1993 do not contain tax Walinski Walinski replied: ‘‘I don’t write down verbatim what people calculations or references to them. McClelland then interviewed Walinski— tell me, so I remember she just said she was Second, The final version of Walinski’s re- first on February 14, 1997—and then again on out . . . I just write down highlights in my port of interview with Gianino on May 21, June 6, 1997. After questioning Walinski at notes . . . Just enough that jogs my memory 1993 contains no reference to income tax cal- length about other parts of his report of in- so I can remember what people said.’’ culations. vestigation on the Steakley tax fraud case, [See Attachment 2, Walinski interview, 6/6/ Third, since the ARB Board did not meet McClelland confronts him with the conflict 97, pages 28, 37, 69] on the Steakley tax evasion case until Feb- between his report and Gianino’s sworn tes- ruary 17, 1994—nine months after the re- Staff Interviews Gianino timony: ported Gianino interview, and since Walinski ‘‘Okay. Well, Mr. Walinski, we have a prob- Gianino was interviewed on June 30, 1999 claims the tax calculations were prepared in lem. And the problem is that Ms. Gianino regarding her knowledge of Walinski’s May response to a question that arose during the controverts almost everything you say about 21, 1993 witness interview report. Board meeting, the notes on tax calcula- her in here [Walinski’s report], under oath, At the beginning of the interview, the Ma- tions—if they ever existed—could not con- on tape.’’ jority Staff gave her an opportunity to ex- stitute proof that the Gianino interview [See Attachment 2, Walinski interview, 2/ amine Walinski’s report. She had never seen took place as reported by Walinski. it. She re-confirmed all the facts previously 14/97, page 62] McClelland’s Evaluation of Walinski Walinski replies: ‘‘Okay, Well,—In here developed by McClelland. Point-by-point, she characterized Walinski’s report as com- McClelland was interviewed on August 4, somewhere we will find the information that 1999 to elicit his impressions on the irrecon- she provided to me, and it will be in her pletely false. She stated that she was never interviewed by Walinski but may have spo- cilable differences between the testimony of handwriting.’’ Walinski and Gianino. This is what [See Attachment 2, Walinski interview, 2/ ken to him briefly on the telephone. She noted that he was even mistaken about her McClelland stated: 14/97, page 62] ‘‘While he was unable to document willful Walinski never produced any documenta- GS grade. Walinski reported that she was a ‘‘GS-12 Payroll Specialist’’ at the top of the intent on the part of Walinski, he character- tion from Gianino that had a bearing on the ized Walinski’s conduct and reporting in the contents or accuracy of his May 21, 1993 re- witness interview form. In fact, Gianino was a GS-7 Payroll technician on the date of the Steakley tax fraud case as egregious. port of interview. Walinski was a sloppy investigator. His re- Then McClelland moved to the key ques- interview. When asked why she thought Walinski fabricated his report of interview, port contained widespread discrepancies and tion about sick leave. Walinski’s report con- inaccuracies.’’ tains a number of references to how Gianino she offered this opinion: Response by Management ‘‘became very ill and was off work for an ex- ‘‘DCIS was out to get Steakley. They want- tended period of time.’’ McClelland asked ed to destroy him’’ This portion of the reports addresses the this question: On August 20, 1999, the staff conducted a question of how DCIS management re- ‘‘Okay. Ms. Gianino states that she was follow-up interview with Gianino. At that sponded to allegations that Walinski had not out sick from December 1991 to spring time, she was shown portions of Walinski’s fabricated his official report on the Steakley 1993, and the records substantiate that.’’ sworn testimony to McClelland on February investigation: [See Attachment 2, Walinski interview, 2/ 14, 1997 where he attempted to explain the Did DCIS management make an honest at- 14/97, page 65] discrepancy between his report and her leave tempt to review the allegations about McClelland asked Walinski to explain the records. In this testimony, Walinski fab- Walinski’s report? discrepancy between his report and Gianino’s ricated a new reason for his May 1993 report The Majority Staff was unable to find any official leave records. Here is Walinski’s re- about her extended absences from the office. evidence to suggest that DCIS management sponse: He suggested that ‘‘she had cancer really attempted to evaluate complaints that ‘‘Well,—well, the remembrance that I have bad, ovarian cancer.’’ Gianino was shocked Walinski had falsified his report on the is, folks, is that she was out sick, and I re- that Walinski had made such a statement Steakley tax fraud case. Examples of how DCIS management re- member everybody at headquarters telling under oath. She said: ‘‘that statement is not sponded to the allegations are cited below. me that . . . I think she had cancer really true. I have never had ovarian cancer.’’ bad, ovarian cancer, and she would come into Staff Interviews Walinski Bonnar work and work a couple of hours, and then On September 8, 1999, the Majority Staff In a memo dated November 15, 1994, she would go home. questioned Walinski about the accuracy of Bonnar—Walinski’s immediate supervisor— [See Attachment 2, Walinski interview, 2/ his May 21, 1993 interview of Gianino. During reported that he had received a telephone 14/97, pages 14 and 65] the meeting, he attempted to offer evidence call from Steakley the previous day—No- Under intense probing, Walinski admitted that his reported interview of Gianino did, in vember 14, 1994. Bonnar reported that that the Gianino interview may not have fact, take place. Steakley asked if Dupree had launched an in- taken place on May 21, 1993—as stated in his This is the explanation offered by vestigation into Mr. Walinski’s actions. official report. He told McClelland: ‘‘I inter- Walinski: Steakley had requested the investigation viewed her [Gianino], like, two or three Since Steakley had refused to cooperate during his meeting with Dupree on October times.’’ McClelland responded to this revela- with the investigation and provide his state 20, 1994. Bonnar told Steakley: ‘‘there are no tion with another question: ‘‘Why isn’t that income tax returns, DCIS could not prove pending internal administrative inquiries in- reflected in the ROI [report of investiga- that Steakley had failed to meet his state volving your case.’’ tion]?’’ Walinski’s response helps to shed tax obligations. This shortcoming was pain- In the memo, Bonnar also reported on light on his investigative methods. He told fully evident when the ARB Board met to re- Steakley’s overall impressions of DCIS’ com- McClelland that his reports do not nec- view the Steakley case. Walinski’s report did mitment to reviewing Walinski’s actions: essarily reflect the way he conducted the in- not answer the key question: What were ‘‘It was clear to him [Steakley] that Mr. vestigation: Steakley’s total unpaid tax liabilities? Ex- Dupree had decided not to act on his request ‘‘Well, because one day I went over there actly how much did he owe Virginia and for an investigation. and she told me this information. Another California? [See Attachment 8, page 2] day I went over there and I interviewed her The ARB wanted that question answered. Hollingsworth and I was interviewing her about another, So Walinski was called into the ARB Board According to the OSC report, Dupree asked you, something else.’’ meeting and directed to get the missing in- Hollingsworth to be certain that Walinski’s

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.020 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13651 report was consistent with the facts, and ness, you know, allegedly there are false [See Attachment 2, Mancuso interview, 3/ Hollingsworth assured him that there was no statements. But you know, he didn’t provide 13/97, page 27] truth to Steakley’s allegations: any facts or information.’’ McClelland then asked Mancuso: ‘‘What ‘‘Dupree asked Hollingsworth to look into [See Attachment 2, Page 38] did you hear from Gary [Steakley] on that the [Walinski] matter and recalled that he Question [inaccuracies in Walinski’s report]? In replying to this question, Mancuso indi- was assured by Hollingsworth that the docu- McClelland then began questioning Dupree ments were in support of the information cates that Steakley’s allegations about about his response to allegations that Walinski’s report were coming into his office . . . and found the allegation was not cor- Walinski had falsified the Gianino interview. rect.’’ and being relayed to him through secondary McClelland asked this question: ‘‘Did you sources: [See Attachment 15, pages 15 and 22] take any action to look into that?’’ OSC’s assessment does not seem to square ‘‘I would walk down the hall and somebody with the facts. Response would say Steakley called me up last night, First, there is no evidence to suggest that ‘‘Other than to assure Larry [Hollings- and he was saying that Matt Walinski had Hollingsworth investigated the accuracy of worth], ‘Let’s make sure that what we’re not attributed remarks properly in some way Walinski’s report. Quite to the contrary, a doing is something we can support and back and that kind of thing.’’ [See Attachment 2, Mancuso interview, 3/ memo signed by Hollingsworth on November it up and everything. But Gary didn’t offer anything. He said he had a tape [interview 13/97, page 26] 23, 1994 suggests that he had no plan to do McClelland follow up by asking: Did he with Gianino on September 8, 1994]. And I’m it—unless Steakley provided more specific [Steakley] tell you anything about a woman saying, Gary, you know, I need more than information Hollingsworth stated: over at payroll called Nancy Gianino? that.’’ ‘‘Based on a review of the allegations made Mancuso’s reply suggests that he was not [See Attachment 2, Page 39] by SA Steakley, no action will be taken only familiar with Gianino’s name, but more until he provides written documentation.’’ Question importantly, he heard about her from [See Attachment 16] McClelland turned to the crucial follow-up sources other than Steakley. It also suggests Use of the words ‘‘written documentation’’ question: ‘‘Did anybody call Gianino and find that Mancuso had knowledge of the core seems important, since Steakley had taped a out, find out what she had actually said?’’ problem with Walinski’s report. This is conversation with Gianino on September 8, Response Mancuso’s reply: ‘‘I’ve heard that from other 1994 suggesting that Walinski had falsified people. I did not hear it from Gary.’’ Dupree’s response is very revealing. It sug- the interview. Testimony by Dupree, which Mancuso’s response to that question prompt- gests he never had any intention of checking is cited in the next section of this report, in- ed McClelland to suggest that Mancuso had out the questions about the inaccuracy of dicates that management knew about the ‘‘some idea of the allegations that Steakley Walinski’s report. He said: tape but refused to consider it as a useful was making with regard to Gianino?’’ ‘‘I have no reason to question the state- piece of evidence. Mancuso admitted that he did but again ment that she provided to Walinski, an Secondly, it seems like Hollingsworth claimed that it was coming from Steakley. thought he knew the answer to the key ques- agent, no different than the statement I pro- [See Attachment 2, Mancuso interview, 3/ tion surrounding the accuracy of Walinski’s vide to you.’’ 13/97, pages 26–27] report—Gianino’s leave status. In his No- Question Mancuso’s response to these questions is vember 23, 1994 memo, Hollingsworth indi- McClelland responded with this question: consistent with the assessment presented by cated that he had already made up his mind ‘‘Well, you have an allegation from Gary the OSC in its report of July 21, 1998 on the on this core issue: [Steakley]?’’ Steakley case, OSC concluded: ‘‘The one issue that can be readily resolved ‘‘Mancuso was aware of the conflict be- Response is the issue of Mrs. Nancy Gianino’s leave tween the Walinski interview of Gianino and status. Contrary to SA Steakley’s allega- ‘‘Allegation. With what? He is the person Steakley’s version of the interview. How- tions, her lengthy leave was well known at that’s being investigated. I had reason to be- ever, Mancuso was not aware of any manu- DCIS since she handles the payroll at Bolling lieve Gary [Steakley] was making a specula- factured information relating to Steakley.’’ AFB for DCIS.’’ tive allegation without any evidence other [See Attachment 15, page 22] [See Attachment 16] than he doesn’t like Matt Walinski.’’ Mancuso Ignored Walinski Problem An independent interview of Gianino and Final Exchange To summarize, Mancuso admits that he review of her leave records would have McClelland closed this segment of the knew about Steakley’s allegation that quickly resolved all the issues surrounding interview with another question: Walinski had fabricated the Gianino inter- Walinski’s report of investigation. However, ‘‘If you were to find out that there were in- view, but no one in DCIS, including Dupree, Hollingsworth failed to pursue this line of in- accuracies in the ROI [report of investiga- had ever suggested to him that there was quiry. tion] with regard to—.’’ any truth to those allegations. Clearly, man- Dupree However, before McClelland could com- agement did not give the allegations much credibility. As Hollingworth put it: ‘‘DCIS On March 13, 1997, McClelland interviewed plete the sentence, Depuree jumped in with gave absolutely no credence to Steakley’s al- Mancuso’s Deputy, Mr. William Dupree, this assertion: ‘‘I would do the similar thing legations.’’ about his knowledge of and reactions to alle- we previously did.’’ So McClelland asked: And what’s that? Dupree’s response: ‘‘Inves- It seems very clear from Mancuso’s testi- gations that Walinski had falsified his report mony that he never considered the need to on the Steakley tax evasion case. tigate it.’’ [See attachment 2, page 41] investigate the allegations. The apparent Initially, Dupree flatly denied having any lack of curiosity on the part of the most sen- knowledge about Walinski’s fabricated re- The Majority Staff’s puzzled by Dupree’s response to the last question. He had allega- ior criminal investigator at the DOD IG is ports. For example, McClelland asked: ‘‘Were astonishing. As a result, the allegations you aware of factual inaccuracies in the tions—from FLEOA and Steakley—about in- accuracies in Walinski’s investigation re- about Walinski were never examined, and no [Walinski] ROI [report of investigation]?’’ corrective action was taken. Dupree’s answer: ‘‘No.’’ McClelland’s follow- port. Why did he fail to investigate them? up question: ‘‘You weren’t?’’ Dupree: ‘‘No.’’ Hollingsworth provided a partial answer to THE CASE OF MR. JOHANSON [See Attachment 2, Dupree interview 3/13/ this question during an interview on August Walinski initiated this inquiry—Adminis- 97, page 37] 24, 1999. Hollingsworth asserted: trative Inquiry 108—on February 23, 1994 Fortunately, McClelland pressed Dupree ‘‘DCIS gave absolutely no credence to after DCIS headquarters, including Bonnar, about the issue and succeeded in making Steakley’s allegations.’’ Hollingsworth, and Nancuso, were officially Dupree admit he was aware of the problem. Mancuso notified that a DCIS-issued weapon was sto- From his response, it seems very clear that McClelland also interviewed DCIS Director len from the home of Special Agent Stephen he never had any intention of examining the Mancuso on March 13, 1997. Johanson, who was assigned to the Van Nuys accuracy of Walinski’s reports. Mancuso’s responses to McClelland’s ques- Resident Agency office in California. Question tions clearly indicate that he was aware of Stolen Gun the allegations about Walinski’s report. McClelland asked him if he remembered if DCIS had issued Johanson two weapons: (1) This is Mancuso’s response to McClelland’s the subject of ‘‘false information in a 9mm Sig Sauer that he normally carried; question about his knowledge of inaccuracies Walinski’s ROI [report of investigation] and (2) a smaller Smith and Wesson revolver in Walinski’s report of investigation and the came up at a meeting in his office [Meeting for undercover work. Gianino interview: Sometime between February 14 and Feb- with Steakley and Cerasi in October 20, ‘‘I know that there was a question that ruary 16, 1994, while Johanson was partici- 1994].’’ Gary [Steakley] had as to where Matt pating in the execution of a search warrant [See Attachment 2, Dupree interview, 3/13 [Walinski] had gotten the information. I re- in San Diego, his home in Palmdale was bur- 97, page 38] member something on that * * * * But it glarized. The burglars stole a number of This was Dupree’s response: was—what I heard of complaints, I heard items valued at about $10,000.00, including Response from Gary. I’m not aware from Bill [Dupree] jewelry and the loaded Smith and Wesson re- ‘‘Oh, Gary [Steakley] was making all kinds or from anyone else that there was anything volver. The stolen revolver was issued to of statements about things. Yeah. The false- inaccurate in Matt’s report.’’ Johanson because of his involvement in an

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.022 pfrm01 PsN: S02PT1 S13652 CONGRESSIONAL RECORD — SENATE November 2, 1999 undercover operation the previous year. Smith’s memo to Johanson recited many statement was in the letter. I said I had no Since an earthquake had severely damaged facts taken directly from Walinski’s report recollection of providing him those instruc- the Van Nuys Resident Agency office and of investigation and accompanying inter- tions nor had I any recollection of saying made it insecure—and no Class-5 safe was views. These same facts were subsequently that to anyone. Moreover, I was not aware of available there, Johanson kept this weapon disputed—and formally challenged—by many the fact that he had an undercover weapon.’’ stored on the top shelf of his bedroom closet of the agents involved. [See Attachment 4, page 1] under a pile of clothing. When he returned Smith’s decision to discipline Johanson Clark told Johanson that he would check from San Diego on February 16th and discov- seemed to hinge on one piece of disputed in- his calendar for the date of February 10, 1994 ered the burglary, he immediately notified formation developed by Walinski. This was a to verify whether he was at the meeting in the local police authorities and DCIS man- meeting that allegedly occurred in the Van the Van Nuys Resident Agency office as re- agement of the break-in and loss of the serv- Nuys Resident Agency office on February 10, ported by Walinski. In checking his cal- ice weapon. 1994. At this meeting, Walinski claimed that endar, he discovered that he was not in the Walinski’s Report Group Manager Jon Clark informed Van Nuys office that day. Instead, he spent Walinski reported that he conducted the Johanson that he would not be assigned to that entire day at the El Segundo Resident following interviews of DCIS officials as- an ongoing undercover operation known as Agency office on other business with both signed to the Los Angeles Field Office: (1) ‘‘Skyworthy.’’ According to Walinski, Young and Smith [Smith and Young later Richard Smith, Special Agent in Charge Johanson then informed Clark that he still confirm the fact. Smith and Young were the (SAC)—March 4, 1994; (2) Robert Young, As- had an undercover weapon. At this point, SAC and ASAC in the Los Angeles Field Of- sistant Special Agent in Charge (ASAC)— Walinski states, Clark told Johanson to fice]. March 2, 1994; (3); Jon Clark, Group Man- bring the weapon to the next firearms quali- Following the phone conversation with ager—March 2, 1994; (4) Michael R. Shiohama fication session to be held on March 7, 1994. Johanson, Clark contacted Smith and Young (RAC)—March 2, 1994; (5) Michael D. This particular assertion appears in in the Los Angeles Field Office to inquire Litterelle, Firearms Coordinator—March 3, Walinski’s interviews of Young, Clark and about the origins of the assertions in 1994; and (6) Stephen J. Johanson, Special Johanson as well as in his report of inves- Smith’s letter to Johanson. Smith advised Agent—March 3, 1994. While all the inter- tigation. The February 10, 1994 meeting is Clark that the information on the February views were conducted during a 3-day period, the centerpiece of Smith’s Notice of Pro- 10, 1994 meeting was extracted for Walinski’s March 2–4, it took Walinski more than five posed Suspension. Smith used this piece of ‘‘internal’’ report of investigation (ROI). At weeks to sign, date, and finalize these inter- information as the basis for charging that point, Clark assured Smith that ‘‘he views. They are actually dated April 12–13, Johanson with failing to return a weapon had not provided a statement on this inves- 1994. issued to him for undercover work. This is tigation.’’ Clark asked Smith to double- Based on these interviews, Walinski what Smith said about the alleged February check the ROI ‘‘to be sure that was no mis- reached four important conclusions. These 10, 1994 meeting attended by Clark: take.’’ Smith re-checked the ROI and ‘‘ad- conclusions are contained in his report of in- ‘‘On February 10, 1994, you [Johanson] were vised me that there was a DCIS Form 1, Re- vestigation: First, Johanson’s supervisors— informed by Group Manager Clark that you port of Interview of me.’’ RAC, SAC, and ASAC—never authorized would not be part of the undercover oper- Clark denied again that he was ever inter- Johanson to have the undercover weapon ation relocated from 50PX [Phoenix]. When viewed by Walinski. This is what he said to issued to him. Second, has supervisors did you told Group Manager Clark that you still Smith: not know that Johanson had the undercover had a second weapon in your possession he ‘‘I was perplexed. I advised SAC Smith that weapon until it was reported as stolen. instructed you to bring it to the next 50LA I had no recollection of this report being Third, Johanson informed the Group Man- range qualification on March 7, 1994. Before taken and asked that I be permitted to read ager (Clark) on February 10, 1994 that he had you could return the weapon, your home was it to refresh my recollection. He said no. ... the undercover weapon, and the Group Man- burglarized and the gun was stolen.’’ I informed SAC Smith that these were facts ager ‘‘immediately’’ instructed him to turn [See Attachment 3, page 1] that I not only did not say—but information it in at the next firearms range training ses- Rank and File Challenge Walinski’s Report I did not know. . . . I could not corroborate the statement attributed to me in SAC sion scheduled for March 7, 1994. And fourth, The first formal complaint about Smith’s letter to Johanson. .. . I cannot be- neither Johanson nor the Firearms Coordi- Walinski’s report on the stolen gun case was lieve I made those statements since I had no nator could remember who authorized initiated on the day Johanson received specific knowledge of those facts. The state- Johanson to have the undercover weapon. Smith’s Notice of Proposed Suspension— ments appear to be factually inaccurate, and [See Attachment 1, Report of Investiga- July 6, 1994—and saw the erroneous informa- therefore would not have been stated by tion, Synopsis] tion about the February 10th meeting. me.’’ Walinski completed this inquiry on April The first complaint was embodied in a [See Attachment 4, page 1–2] 15, 1994. On that date, Hollingsworth for- sworn statement signed jointly by Super- About a week later—on July 5, 1994—Mr. warded Walinski’s report of investigation visory Special Agent Jon Clark and Mr. Michael D. Litterelle [Firearms Coordinator] and appended interviews to Dupree ‘‘for Thomas J. Bonnar—Walinski’s immediate informed Clark that he had a copy of whatever action you deem appropriate.’’ supervisor at DCIS Headquarters in Wash- [See Attachment 1, letter of transmittal] Walinski’s ROI, and Litterelle actually gave ington. While this statement was signed on Clark a copy of Walinski’s form 1 Witness ARB Recommendation July 19, 1994, it concerned a telephone con- Interview of Clark. After reading it, Clark The Administrative Review Board (ARB) versation between Johanson and Clark on stated: met on April 21, 1993 to consider Walinski’s July 6, 1994. The joint Clark/Bonnar state- ‘‘I read the interview and found it con- report on the Johanson case. ment clearly suggests that Walinski falsified tained statements that were attributed to After reviewing Walinski’s report, the ARB information in this report of investigation me that I knew were untrue. . . . I never reached these conclusions: (1) Johanson on the stolen gun case. made this statement.’’ stored a government-issued weapon at his Portions of the joint statement are sum- [See Attachment 4, page 3] residence while on ‘‘extended leave or non- marized below. The exact distribution of the joint Bonner- duty status for 5 or more consecutive days’’ After receiving Smith’s Notice of Proposed Clark statement is unknown. However, since in violation of Section 3807.4 of the DCIS Suspension on July 6, 1994, Johanson called it was ‘‘solicited’’ by Bonner, the Assistant Special Agent’s Manual; and (2) Johanson Jon Clark on the telephone to express alarm Director of internal affairs, it would not be was not authorized to posses two issued and confusion over a statement in Smith’s unreasonable to assume that Hollings- weapons. The ARB also concluded that memo that was attributed to Clark. worth—the director—and other DCIS man- Johanson failed to return the weapon at the Johanson read the following statement to agers knew about it and actually saw it. conclusion of the undercover operation and Clark: failed to sign the proper forms when the ‘‘That he [Johanson] was instructed by Supervisor Challenges Walinski’s Report weapon was issued to him. Group Manager Jon Clark on February 10, Several weeks after the Bonnar/Clark com- The ARB recommended that Johanson be 1994, that he was not going to be partici- plaint, another formal complaint about suspended for 10 days without pay. The pating in the undercover operation at LAFO Walinski’s report was submitted to Hollings- ARB’s report, dated May 9, 1994, was for- [Los Angeles Field Office] and that he should worth’s office. This one was signed on Au- warded to the SAC, Los Angeles Field Office, return the undercover weapon he had at the gust 4, 1994 by ASAC Young in the Los Ange- Richard R. Smith, for consideration. next firearms qualification.’’ les Field Office. It contained a detailed, line- [See Attachment 2, page 1] [See Attachment 4, page 1] by-line commentary on inaccuracies in Charges Johanson informed Clark that he had no Walinski’s interview of Young along with On June 24, 1994, Smith issued a Notice of recollection of receiving this instruction highly critical comments on Walinski’s Proposed Suspension to Johanson. Smith from Clark and asked Clark if he could recall interviews of Clark and Shiohama on the recommended that Johanson be suspended giving it. This is how Clark responded to the same date [March 2, 1994]. without pay for 8 calendar days: for failing news: Young stated that he was ‘‘somewhat ‘‘to sign for, properly secure, and return a ‘‘I was astonished and confounded by this shocked’’ after reading Walinski’s report. He weapon issued to you for an undercover as- statement. I asked him to re-read the state- stated that Walinski’s report contained signment.’’ ment. I said I have no idea how or why that statement that were misleading, ‘‘wrong’’

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.024 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13653 and ‘‘inaccurate.’’ He said that Walinski at- The sworn statement signed jointly by was stolen from his home during a burglary. tributed statements to him that he never Bonnar and Clark alludes to a possible at- The staff checked with other federal law en- made. tempt by DCIS management to keep a lid on forcement authorities to determine how After alluding to the ‘‘significant discrep- all the complaints about Walinski’s reports: similar cases have been handled in the past. ancies’’ in Walinski’s interview of Clark, ‘‘On July 8, 1994, ASAC Young advised me Under normal circumstances, they suggested Young reports that Shiohama had advised that HQ [DCIS Headquarters] had decided that a routine administrative inquiry would him that ‘‘there were subject areas in the re- that they would wait and not raise the issue be conducted. Once it was determined that port or statements that he had not discussed regarding my discrepant interview unless it the firearm was stolen during a burglary and with SA Walinski. Shiohama stated that the was raised by SA Johanson. I [Clark] ex- the theft was duly reported to the proper au- last paragraph of his interview was totally pressed concern that this may be released to thorities, the entire matter would be inaccurate.’’ However, both Young and agents and that they may conclude that I dropped. Shiohama insisted that portions of their fabricated this story and it would therefore Walinsky ‘‘Disciplined’’ for Bungled Investiga- interviews appeared to accurately reflect discredit me. I was informed that the infor- tion what they had said to Walinski. mation was controlled in its release.’’ On July 20, 1999 and again on August 4, Appeal to Management About Walinski’s Re- [See Attachment 4, pages 2–3] 1999, Ms. Jane Charters was interviewed re- On August 9, 1999, the staff contacted the ports garding her knowledge of personnel actions DOD IG with this question: ‘‘Who at DCIS In asking Hollingsworth to examine the taken against Walinski in the wake of the made this decision?’’ The following answer bungled Johanson investigation. discrepancies in Walinski’s report, Young was provided on September 30, 1999: ‘‘We makes an appeal to senior management on Ms. Charters is currently the Director of have not been able to determine who, if any- the Investigative Support Branch at DCIS— behalf of rank and file agents: one, made this alleged decision.’’ ‘‘I am not trying to cause you or Matt the same position she occupied in 1994 during Re-Investigation [Walinski] problems. But in this situation I the Johanson and Steakley investigations. am caught in the middle. I have agents that As a result of all the complaints. DCIS She exercises personnel responsibilities in are in the process of being disciplined and management eventually made a decision to DCIS. During the first interview of July 20, 1994, based on what I know now the recommended launch a re-investigation of the Johanson Charters stated that as a result of mistakes disciplinary actions may be based on incom- stolen gun case. The re-investigation was in stolen gun case investigations, DCIS ‘‘lost plete and inaccurate information. The agents conducted by SA Timothy L. Shroeder from confidence’’ in Walinski and transferred him throughout the Field Office know this and August 10, 1994 until October 5, 1994. out of internal affairs and into her office. In are now finding fault with management for Unfortunately, the re-investigation was the new position, Walinski was no longer not taking some type of action to have this conducted in a complete vacuum—as if the conducting internal investigations. Instead, situation re-evaluated.’’ entire matter had never been investigated by he was to be responsible for DCIS training, [See Attachment 5, Note from Young to Walinski. It is easy to understand why DCIS needed physical fitness and security. Charters also Hollingsworth] reported that Walinski was issued a letter of Young’s report was officially moved up the to go back to square one and re-examine all reprimand that was placed in his file—a fact chain of command—to the top. Young for- the facts bearing on the stolen weapon. The that was confirmed by Bonnar during an warded it to Bonnar who, in turn, submitted second investigation had to be impartial and interview on July 12, 1999. it to Hollingsworth, and Dupree—Mr. independent after Walinski was accused of Mancuso’s Deputy. However, during an inter- falsifying information contained in the origi- Walinski’s Personnel File view on September 14, 1999, Mancuso denied nal investigation. At the same time, DCIS On two occasions in July—July 7th and having knowledge of the allegation that the management had a responsibility and an ob- again on July 23, 1999, the Majority Staff ex- Clark interview was fabricated until re- ligation to determine whether Walinski had amined Walinski personnel file to determine cently or August 1999. falsified his report—as alleged by rank and if the disciplinary actions taken against him file agents. Unfortunately, there was no at- for his mistakes in Johanson investigation— FLEOA Letter tempt to reconcile the facts contained in as described by Charters and others—were Young’s formal complaint to Hollings- Walinski’s report of investigation with the accurately reflected in performance ratings worth about Walinski’s inaccurate reports facts developed in the re-investigation. In and other personnel actions in his file. was followed almost immediately by a for- fact, the agent in charge of the re-investiga- The Majority Staff found no evidence that mal complaint from another source. tion—Shroeder—received specific instruc- Walinski was ever disciplined for the failed During the adjudication phase of the stolen tions to steer clear of the disputed inter- Johanson gun case. Quite to the contrary, gun case, Johnson was represented by an at- views. Hollingsworth gave him these instruc- the available evidence suggests Walinski was torney with the Federal Law Enforcement tions: The ‘‘new investigation should be con- actually rewarded for what happened. Officers Association (FLEOA), Luciano A. ducted without reviewing the results of the Here is what the Majority Staff found in Cerasi—the same lawyer who represented previous interviews.’’ his file: Steakley in the tax evasion case. [See Attachment 7] Employee Performance Rating—1993/94 In a letter to Dupree, dated August 8, 1994, Clearly, Shroeder needed to avoid the pit- For the rating period August 26, 1993 to regarding the Johanson case, Cerasi raised falls created in first investigation, but man- March 31, 1994, Walinski received an ‘‘out- the possibility that Walinski had falsified agement should have assigned another agent standing’’ rating. his report of investigation. Cerasi’s letter to examine the allegations made about The outstanding rating applied to the pe- contains this explosive allegation: Walinski’s report. If Walinski bungled his in- riod of time when Walinski conducted two ‘‘It is questionable whether SA Walinski vestigation and the case had to be re-inves- investigations—Steakley and Johanson— even interviewed SA Clark.’’ tigated, then DCIS management should have where the accuracy of his reports were later Cerasi also raised questions about why five determined exactly where and how questioned. In fact, the rating period in- weeks elapsed between the dates on which Walinski’s investigation deviated from ac- cluded the date—March 2, 1994—on Walinski Walinski conducted the disputed interviews cepted standards. All the complaints from claims he conducted interviews with Young, and the final dates on the interview reports. rank and file agents and the FLEOA attor- Clark, and Shiohama. Those reports of inter- Cerasi suggested that this delay violated ney required nothing less than that. view were later characterized as false, mis- DCIS policy requiring that witness reports New Charges leading and inaccurate by the agents in- be completed and finalized within 3 working Based on the re-investigation, Smith rec- volved and the FLEOA attorney. The days of the investigative activity. Cerasi ommended that Johanson be suspended with- Gianino interview occurred on May 21, 1993— characterized Walinski’s report as a ‘‘shabby out pay for 10 calendar days. Smith’s second just prior to the beginning of the rating pe- investigative effort’’ that would only serve Notice of Proposed Suspension was dated No- riod, but considerable investigative activity to demonstrate to other agents that in DCIS vember 23, 1994. Smith charged Johanson on the Steakley case occurred during his rat- ‘‘justice is unattainable.’’ with violating two sections of the Special ing period. [See Attachment 6, pages 3–4] Agents’ Manual: (1) Failing to exercise ‘‘ut- The rating officials offered this comment: Attempted DCIS Coverup Possible most caution’’ in storing a firearm at his ‘‘Walinski continues to excel in every aspect Initially, DCIS management may have residence; and (2) Storing a weapon at his of his job. He is a very valued employee of tried to put a lid on the groundswell of ad- residence while away from his assigned office DCIS.’’ The outstanding rating was approved verse information on Walinski’s reports that for an extended time. by Bonnar and the Director of internal af- began to surface in mid-1994. First, there [See attachment 8, pages 1–2] fairs, Hollingsworth, on April 15, 1994—the were complaints from rank and file agents— In the final notice on suspension, dated exact same day that Hollingsworth for- Clark, Young, and Shiohama—in July and February 9, 1995, Durpee suspended Johanson warded Walinski’s completed report of inves- August 1994. Those were followed imme- for 3 calendar days, beginning on February tigation on the Johanson case to Dupree. diately by the FLEOA letter. A month 15, 1995. [See attachment 10] later—in September 1994—FLEOA filed a sec- [See attachment 9] Incentive Award Nomination—Recommendation ond complaint with management. This one Need for Investigation Questioned On April 25, 1994, Hollingsworth rec- concerned allegations that Walinski had fab- It’s difficult to understand why DCIS ommended that Walinski receive a perform- ricated the Gianino interview. would suspend an agent for losing a gun that ance award of $1,200.00 to accompany the

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.026 pfrm01 PsN: S02PT1 S13654 CONGRESSIONAL RECORD — SENATE November 2, 1999 ‘‘outstanding’’ rating he received for the pe- for his health.’’ He said Walinki ‘‘blew’’ the Field Office inspection could be viewed as a riod August 1993 to March 1994—the same pe- Johnason case because ‘‘he was totally retaliatory measure, and as such, a very riod when he conducted witness interviews in stressed out.’’ Hollingsworth feared he might questionable management decision. the Johanson case that were later character- ‘‘have a heart attack.’’ Performance Award—1994 ized as false, inaccurate and misleading. Walinski meaintains that the transfer was On July 24, 1994—exactly three weeks after [See attachment 11] driven by routine considerations. his transfer from internal affairs into train- Previous Cash Award—1993 During an interview on September 8, 1999, he gave the following reasons for the move: ing, Walinski received a cash award of The form used to recommend the $1,200.00 (1) There was an attractive opening in Char- $1,200.00. [See Attachment 16] performance award also noted that Walinski ters’ organization; (2) The opening offered At our meeting with Charters on August 4, had not received any other performance him some growth potential into a manage- 1997, she offered an explanation for the awards in the preceding 52 weeks. His per- ment position in the future; (3) He had com- $1,200.00 cash award—in light of Walinski’s sonnel file indicates otherwise. He received a pleted his planned 3-year tour of duty in in- mistakes on the Johanson case. She sug- ‘‘Special Act or Service Award’’ of $2,000.00 ternal affairs; and (4) He had a plan for ad- gested that it was given for the rating period on May 2, 1993—several weeks before his fab- dressing the training deficiencies in Char- August 26, 1993 through March 31, 1994—‘‘be- ricated interview with Gianino on May 21, ters’ Directorate. When asked if there was fore the problem arose over the Johanson 1993. any other reasons for the move, he said [See Attachments 11 & 12] gun case.’’ ‘‘No.’’ Special Performance Rating—1994 [See Attachment 15, pages 1–2] Charters’ explanation is not supported by the facts. The facts cited below clearly indi- This a special rating given to Walinski im- Walinski Assigned Inspection Duties cate that DCIS management was aware of mediately before his sudden transfer out of A personnel document, signed by Bonnar the complaints about Walinski’s report at internal affairs and into the Investigative and Hollingsworth on October 12, 1994 sug- least three weeks before Walinski received Support Directorate. It was the last rating gests that Walinski conduct inspections long the cash award: he received for his work in internal affairs after he was reassigned to ‘‘training’’ in —The rating period for which the cash and covered a ‘‘shortened rating period’’ of Charters’ office. Along with inquiries of em- award was given included the date—March 2, April 1, 1994 through July 2, 1994. This rating ployee misconduct, inspections are the main 1994—on which Walinski conducted inter- period includes the date on which Walinski responsibility of the internal affairs office. views of agents that were later characterized finalized the report of investigation on the This document suggests that Walinski con- as false, misleading and inaccurate in rank Johanson case—April 15, 1994. The closing tinue to perform, work for the internal af- and file complaints to management; date for this reporting period—July 2, 1994— fairs office—despite his removal from that came one day before his move to Charters’ —Management claims that Walinski was office. This document shows that Walinski transferred from internal affairs into train- office and just four days before the first played a leadership role in various inspec- known written complaint about Walinski’s ing on July 3, 1994 as a disciplinary measure tions as follows: for the mistakes he made in the Johanson false and inaccurate reports reached DCIS ‘‘He also worked on the preparation for the case. This indicates that management knew Headquarters in Washington. Los Angeles FO [field office] inspection. Al- about the allegations prior to that date; Bonnar and Hollingsworth gave him a though the Los Angeles FO inspection was —Walinski admitted that he received a ‘‘fully successful’’ rating, but for unex- conducted after the end of this special rating reprimand for making ‘‘administrative er- plained reasons, took over three months to period when SA Walinski reported to his new rors’’ in his report on the Johanson case approve it. It was finally signed on October assignment in the Investigative Support Di- while still assigned to internal affairs—or 12, 1994. Walinski’s other ratings were ap- rectorate, he returned to assist with the LA prior to July 3, 1999; proved quickly—within two weeks of the end inspection and played a significant role by —Clark informed DCIS management, be- of the rating period. leading inspection efforts in the DCIS offices ginning on July 6, 1994, that Walinski’s [See Attachment 12]. in Phoenix, Tuscon, Albuquerque, and Hono- March 2, 1994 interview of Clark was com- DCIS says the delay was due to ‘‘an admin- lulu as well as Los Angeles. He worked inde- pletely false; istrative oversight.’’ pendently on these inspections without the Walinski stated August 2, 1999 that this is need for any close supervision.’’ The facts show that the $1,200.00 cash the rating where ‘‘he took a hit’’ for his mis- [See Attachment 13, page 3] award given to Walinski on July 24, 1994 takes in the Johanson case. The language in During an interview on September 14, 1999, came at least three weeks after DCIS man- the performance rating documents seemed to Mancuso expressed surprise that Walinski agement had knowledge that Walinski had support Walinski’s assessment: led the inspection of the Los Angeles field of- falsified reports on the Johanson case. ‘‘Unfortunately, during this rating period fice after his reassignment: Reprimand he failed to show due diligence and accuracy Mancuso said he had no knowledge of The staff was never able to locate the let- in reporting the results of some interviews Walinski’s involvement in the inspection of ter of reprimand that was placed in with regard to one administrative inquiry. the LA Field Office after his transfer. He Walinski’s file, nor was the staff able to es- This one shortfall in SA Walinski’s perform- would be surprised and concerned if true, and tablish the exact date on which the rep- ance is not typical of the otherwise high said he would be checking on the accuracy of rimand was given. quality and professional level of his work.’’ that information. During an interview on July 12, 1999, [See Attachment 13, pages 3–4] Decision on Inspection Duties Questioned Walinski’s immediate supervisor, Tom when Bonnar and Hollingsworth signed In an information paper provided on Sep- Bonnar, stated that he was ‘‘furious’’ with this document in October 1994, they had al- tember 30, 1999, Mancuso admitted that Walinski about the Johanson interview ready received the allegations about Walinski was involved in the inspection of statements. He said Walinski ‘‘was verbally Walinski’s false reports on the Steakley tax the Los Angeles Field Office. However, and officially reprimanded and a letter was evasion case. For that reason, the reference Mancuso maintains Walinski was kept on placed in his file.’’ Bonnar doubted the rep- to ‘‘accuracy of reporting’’ in just one inter- the team only ‘‘to train his replacement’’ rimand would still be in his personnel file, nal investigation does not appear to square and ‘‘did not participate in the actual inspec- since it’s customary to remove them after a with the facts. tion.’’ Mancuso’s statement conflicts with brief period of time. Reassignment the personnel document signed by Bonnar, [See Attachment 17, page 2] Walinski’s personnel records indicate that Hollingsworth, and Walinski in 1994 ref- On September 8, 1999, Walinski confirmed his transfer from internal affairs to the In- erenced above. that Bonnar had indeed ‘‘handed him’’ a vestigative Support Branch became effective It is very difficult to understand why ‘‘letter of caution’’ for making ‘‘administra- on July 3, 1994. Walinski would have been assigned to pre- tive errors’’ on the Johanson case, but he [See Attachment 14] pare the inspection report on the Los Ange- could not remember if he kept it for 30, 60, or As previously reported, Charters suggested les Field Office in the wake of all the allega- 90 days. In a telephone conversation on Au- during two interviews that DCIS manage- tions and complaints flowing from the gust 2, 1999, Walinski claimed that ‘‘Bonnar ment ‘‘had lost confidence in Walinski’’ as Johanson case. The re-investigation of the told him to destroy it in the shredder after an investigator ‘‘and moved him into her of- Johanson case, which began in August 1944 30 days.’’ fice’’ as a disciplinary measure. Charters’ de- and was concluded in October 1994, was in Walinski also seemed somewhat confused scription of the reasons behind Walinksi’s progress while Walinski conducted the in- about the actual date of the reprimand. Ini- transfer are consistent with those provided spection of the Los Angeles Field Office. tially, he suggested that it was dated Octo- by Mancuso during an interview on Sep- That re-investigation was specifically trig- ber 12, 1994. However when it was pointed out tember 14, 1999. gered by his disputed interviews of at least that date was the exact day Bonnar and Hol- Hollingsworth and Walinski, by compari- three agents assigned to the Los Angeles lingsworth approved his last performance son, provided a completely different set of field Office. Those agents made formal com- evaluation for internal affairs, he suggested reasons behind the July 1994 move. plaints to management about the quality of that October 12, 1994 might have seen the day During an interview on August 24, 1994, Walinski’s reports. In effect, these agents he destroyed the letter of reprimand. Mr. Holllingsworth suggested that the move was ‘‘blew the whistle’’ on Walinski. Assigning Walinski seemed certain of one fact: he re- not taken for disciplinary reasons: ‘‘It was Walinski a leadership role in the Los Angeles ceived the reprimand while still in internal

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.028 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13655 affairs. This statement is consistent with cies in the report of investigation that Mancuso said that Walinski was given a statements by Charters and Mancuso that Walinski prepared.’’ Although McClelland reprimand and transferred [in July 1994] be- the reprimand was issued before July 3, 1994. appeared to be asking about the Steakley re- cause of rank and file complaints, of which [See Attachment 15, page 2] port, Mancuso’s response seems to address he was aware, about the credibility of the Walinski’s Rebuttal the Johanson case. Mancuso also accepted work being performed by the internal affairs the ‘‘switched headers’’ excuse: office. He said the ‘‘transfer and reprimand Walinski has a simple explanation for the ‘‘No. Again, I’m a little bit fuzzy because were the culmination of several negative re- inaccuracies in his report of investigation on we had one or two instances where Matt ports on Walinski.’’ As a result of these com- the Johanson stolen gun case. His expla- [Walinski] on different cases which were in plaints, policy changes—like the need to nation was given during testimony to the same area, where Matt had inaccurately record and verify interviews—were put in McClelland on February 14, 1997 and con- attributed certain remarks—had confused place—and the Johanson case was re-inves- firmed in a telephone conversation on Au- witnesses’ names in his notes. But I don’t re- tigated. gust 2, 1999. Mancuso insisted that he ‘‘did not know He claims it was a clerical error. In a nut- call any inaccuracies involving about the extent of Walinski’s mistakes.’’ He shell, this is his explanation: Steakley. . . . Gary [Steakley] was saying claims that as DCIS Director, he normally ‘‘The headers got switched. The wrong Walinski’s responsible for other cases that ‘‘did not get beyond that level of detail,’’ headers ended up on the Form 1 interview are now suspect because of inaccura- though he admitted he got deeply involved sheet. I said that one guy said one thing cies. . . .’’ with the Steakley case because of the lack of when I said another guy said another thing. [See Attachment 18, interview, 3/13/97, pages 25–46] progress in the investigation. This happened when the interviews got typed [See attachment 19, page 1] up. We had a secretary that wasn’t a top Management’s Knowledge of Allegations Decision to Re-Open Case quality individual. She typed them up The testimony given by Dupree and wrong. . . . But it was my mistake.’’ Mancuso to McClelland on March 13, 1997 The directive that re-opened the Johanson [See Attachment 18, interview, 2/14/97, clearly indicates that senior management at case was dated September 23, 1994. This pages 74–75, and telephone interview 8/2/99] DCIS was aware of the allegations about memo suggests that DCIS managers were During an interview on September 8, 1999, Walinski’s falsified report on the Johanson aware of rank and file complaints about Walinski offered a similar explanation: case. Walinski’s report. ‘‘It was an administrative error. I roughed Rank and file complaints about Walinski’s The memo states that the Johanson case out the form 1 interview reports on my com- false and misleading reports went right to was re-opened ‘‘after allegations of discrep- puter and gave my write up to a secretary. the top at Headquarters as follows: ancies were made concerning the original interviews.’’ It also states that Charters and The secretary got the headers mixed up and —On July 19, 1994, Agent Clark signed a switched some paragraphs.’’ Hollingsworth directed the assigned agent sworn statement, alleging that Walinski had [Schroeder] ‘‘to conduct an independent in- [See Attachment 15, page 2] falsified his report [based on complaints re- Walinski’s explanation is highly question- quiry concerning the circumstances sur- ceived from Johanson on July 6, 1994]; rounding’’ Johanson’s stolen firearm. able for two reasons: 1) if the Clark interview Clark’s statement was ‘‘solicited’’ and wit- never took place—as Clark stated, then how [See attachment 7] nessed by Bonnar, the Assistant Director of Legal Questions about Walinski’s Reports could Clark’s name end up on a Form 1 Internal Affairs and Walinski’s immediate There seems to be a consensus within DCIS ‘‘header’’ that was only inadvertently supervisor; A document indicates that DCIS that Walinski’s reports on the Steakley and ‘‘switched’’? Clark’s name not should not headquarters was aware of this complaint on Johanson were ‘‘inaccurate.’’ DCIS thinking have appeared on the radar screen; And 2) or about July 8, 1994; seems to suggest that Walinski’s reports Both Young and Shiohama contend that por- —On August 4, 1994, ASAC Young in the might have carelessly deviated from the tions of their interviews were true and accu- Los Angeles Field Office formally com- facts, or he may have misinterpreted a state- rate. If portions of the Young and Shiohama plained to Hollingsworth about Walinski’s ment. He was just mistaken or careless. Or interviews were true and accurate, then how false and inaccurate reports of interview as Walinski put it, he just made ‘‘adminis- could the incorrect portions of their inter- with agents Young, Clark, and Shiohama; trative errors.’’ views involved ‘‘switched headers’’? Young reports that rank and file agents are During an interview on July 12, 1999, Furthermore, Walinski states that he pre- ‘‘finding fault with management for not tak- Bonnar characterized Walinski’s reports this pared his write-ups of the interviews on a ing some type of action to have this situa- computer and transferred them to a clerk way: tion re-evaluated;’’ Hollingsworth forwarded ‘‘The statements in Walinski’s reports typist to be finalized. That being the case, a Young’s formal complaint to Mancuso’s Dep- mix up of headers seems improbable. were inaccurate and not falsified.’’ uty, Dupree; [See attachment 17, page 2] Walinski rule —On August 8, 1994, FLEOA addressed a Mr. John Kennan, the current Director of Following the Johanson investigation, formal complaint to Dupree, alleging that DCIS, was interviewed on August 4, 1999. He DCIS management instituted investigative Walinski falsified his report of investigation; indicated that he was well aware of all the reforms, including the so-called ‘‘Walinski —On August 10, 1994, management adverse information on Walinski’s reports in rule.’’ Under this rule, all interviews have to launched a re-investigation of the Johanson August 1994, but he attempted to minimize be recorded and transcripts reviewed and case based on rank and file complaints about the significance of the problem. He said verified by witnesses. Walinski’s reports; those reports were not a concern because: Management Backs Up Walinski Mancuso’s Knowledge of Allegations ‘‘Walinski’s inaccurate reports did not af- During an official DOD IG interview by Mancuso’s broad responsibilities for inter- fect the outcome of the investigation.’’ McClelland offered a similar view in an McClelland on March 13, 1997, both Dupree nal investigations suggest that he would interview with OSC on November 5, 1997: have been informed immediately of rank and and Mancuso attempted to diminish the sig- ‘‘Walinski had been inconsistent and inac- file complaints about the integrity of an on- nificance of the allegations that Walinski curate in his report on the tax issue (regard- going inquiry. Testimony and statements in- had falsified his reports on the Johanson ing Gianino’s testimony) but that it was not dicate that Mancuso was kept up-to-date on case. They seemed to accept the ‘’wrong harmful. Walinski was just a sloppy investi- the progress of all ongoing internal inves- headers’’ excuse used by Walinski. gator.’’ McClelland questioned Dupree on March 13, tigations. Mancuso’s responsibilities as DCIS [See Attachment 20] 1997 about ‘‘Walinski’s ability as an investi- Director—and the DCIS person chiefly re- The staff believes that Walinski’s reports gator’’ and problems with regard to ‘‘factual sponsible ‘‘for staffing and direction for the of interview with Gianino and Clark and his inaccuracies’’ in his reports. During the conduct of internal investigations’’—meant sworn testimony to McClelland regarding course of that interview, Dupree offered that he would have been informed about the these matters in 1997 went far beyond simple Walinski’s ‘‘wrong header’’ excuse. This is controversy over the Walinski report on the factual inaccuracies. The staff believes that what Dupree said: Johanson case and would have been involved Walinski invited or fabricated information ‘‘Matt’s [Walinski] probably one of the in the decision to re-investigate the case and contained in those reports for the following most capable investigators I know. It wasn’t reassign Walinski to Charters’ office. reasons: factual inaccuracies. It was in the delibera- During an interview on September 14, 1999, First, both Gianino and Clark deny that tion of putting a lot of statements together. Mancuso was questioned about his knowl- they were ever interviewed by Walinski; they Unfortunately, some of the comments that edge and awareness of the allegations about deny making the statements attributed to were made by individuals were transposed to Walinski’s reports. This is what Mancuso them by Walinski; and both deny any knowl- other individuals. The statements and the said: edge of the facts attributed to them by facts were absolutely correct. They were just Mancuso admitted that he knew about Walinski. attributed to the wrong person.’’ ‘‘the problems of Walinski’s reporting’’ on Second, it is possible to independently [See Attachment 18, interview, 3/13/97, the Johanson case back in 1994, but he con- verify certain inaccuracies in Walinski’s re- pages 45–46] tends that he was unaware of the allegations ports. During an interview on March 13, 1997, that Walinski had fabricated the Clark inter- —In Gianino’s case, Walinski stated ‘‘very McClelland asked Mancuso if he ever got view in its entirety ‘‘until a few weeks ago’’ shortly after her [Gianino’s] discussions with ‘‘any word from Bill Dupree about inaccura- or in August 1999. Steakley she became very ill and was off

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.031 pfrm01 PsN: S02PT1 S13656 CONGRESSIONAL RECORD — SENATE November 2, 1999 work for an extended period of time.’’ began receiving rank and file complaints (16) Notification of Personnel Action, Form Walinski later explained that ‘‘she had can- about the accuracy of his reports. 50–B, Performance Award, 7/24/94 cer really bad, ovarian cancer.’’ Gianino’s of- Stealkey Case—Attachments (17) Memo of interview with Bonnar, July 12, 1999 ficial leave records clearly indicate that she (1) Report of Investigation—Administra- (18) McClelland interviews located in Sub- had no ‘‘extended illness’’ as reported by tive Inquiry 91, May 1993, with witness inter- committee and OSC files combined with Sub- Walinski. In fact, she was shocked when told views and other documents committee interview on August 2, 1999 that Walinski had testified in 1997—under (2) McClelland interviews located in Sub- (19) Memo of interview with Mancuso, Sep- oath—that she had ovarian cancer. She stat- committee and OSC files; Testimony dates ed: ‘‘That statement is not true.’’ tember 14, 1999 and pages cited; Including tape tran- (20) OSC (Shea) interview, November 5, 1997 —In Clark’s case, Walinski stated that scriptions Clark had made statements, which Clark (3) Letter from Steakley’s tax attorney, INSPECTOR GENERAL, said he never made, at a meeting, which John T. Ambrose, February 22, 1994 DEPARTMENT OF DEFENSE, Clark said he never attended. Clark’s ap- (4) Recommendation of the Administrative Arlington, VA, October 1, 1999. pointment calendar shows that he did not at- Review Board on Steakley case, March 7, Hon. CHARLES E. GRASSLEY, tend the meeting at the DCIS office identi- 1994 Chairman, Subcommittee on Administrative fied by Walinski. Instead, he spent that en- (5) Notice of Proposed Suspension, Memo Oversight and the Courts, Committee on the tire day at another DCIS office with two from Keenan to Steakley, August 4, 1994 other supervisory agents—Young and (6) Final Decision on Proposed Suspension, Judiciary, United States Senate, Wash- Smith—who both subsequently confirmed Memo from Dupree to Steakley, October 25, ington, DC. DEAR MR. CHAIRMAN: I am writing regard- that fact. 1994 DCIS officials also contend that even if (7) Letter from Steakley’s attorney, ing the inquiry of your Subcommittee into Walinski’s reports contained false informa- Luciano A. Cerasi, to Dupree, Received by certain personnel cases in the Defense Crimi- tion, that information was ‘‘not harmful.’’ DCIS ON September 15, 1994 nal Investigative Service (DCIS). Your letter For example, what difference does it make if (8) Memo from Bonnar to Hollingsworth on of September 27, 1999, invited the Office of Gianino did not have an ‘‘extended illness’ as telephone call from Steakley, November 15, Inspector General (OIG) to provide a written reported by Walinski. They argued that the 1994 response based on my interview by your staff questionable facts generated by Walinski did (9) Letters from Steakley to DOD IG Elea- on September 14, 1999. I understand that this not affect the outcome of the investigation. nor Hill and Senator Fred Thompson, March response will be attached to any final report The level of danger or harm caused by a 9 & 12, 1996 that you may issue. false statement is not a valid standard for (10) Exchange of letters between DOD IG In your letter you state that I was allowed determining whether the law was violated. Hill and President’s Council on Integrity & the opportunity to review the factual find- Under the law—18 USC 1001—a person who Efficiency, May 23, 1996 and October 16, 1996; ings of your staff. I respectfully disagree deliberately makes false statements could be Hill’s letter to Sen. Thompson, May 23, 1996; with that assertion. I have not been given an convicted of a felony and sent to prison for Hill’s memo to PCIE, February 20, 1997; OSC opportunity to review any written work up to five years. The law does not make ex- letter to Hill, June 3, 1997; IC letter to PCIE, product, nor did your staff orally share any ceptions for the extent of damage or harm January 8, 1999 draft findings. Rather, our meeting consisted caused by a false statement. In fact, a court (11) Investigative Plan Into Allegations by of an interview in which I responded to a decision specifically suggests the false state- William G. Steakley, March 27, 1996 lengthy series of questions. In light of these ments need not involve loss or damage to the (12) Gianino’s official leave records for facts, the OIG would again request the op- government [U.S. v. Fern, C.A. 11 (Fla.) 1983, 1991–1993 portunity to review your final written report 696 F.2d 1269]. (13) Memo of interview with Gianino, June and provide comments prior to its release. Furthermore, the staff would argue that 30, 1999 During my nine-year tenure as Director, Walinski’s false reports did, in fact, cause (14) Memo of interview with Walinski, Sep- DCIS, I supervised approximately 500 inves- damage. tember 8, 1999 tigative personnel at any given time and the First, Walinski’s reports undermined the (15) OSC Report on Steakley case, No. MA– conduct of nearly 10,000 defense fraud inves- integrity and credibility of the investigative 97–1477, July 21, 1999—Located in Sub- tigations. I have devoted my life to public process at DCIS—the Defense Department’s committee files] service and have proudly served for over 27 criminal investigative arm. (16) Hollingsworth memo for the record, years. I am committed to integrity in leader- Second, Walinski’s reports damage the rep- November 23, 1994 ship within the Inspector General commu- utations of two fellow agents—Steakley and Johanson Cast—Attachments nity and proud of my investigative and man- Johanson. Walinski’s false reports formed agement record. (1) Report of Investigation—Administra- the foundation for charges that were eventu- Given my limited understanding of the tive Inquiry 108, April 15, 1994, including wit- ally made against both individuals. Accord- scope of the inquiry of your Subcommittee, I ness interviews and other documents will in this letter attempt to furnish you ing to Steakley, those reports caused (2) Recommendation of the Administrative with further insight as to the matters in Steakley and Johanson and their families to Review Board on the Johnson case, May 9, question. My objective in this matter is to incur considerable legal expenses and mental 1994 provide you with the information you need anguish. (3) Notice of Proposed Suspension, Memo to accurately assess these cases. Specifi- Other Cases from Smith to Johnson, June 24, 1994; ac- cally, I will address actions with respect to During the course of the inquiry into the knowledged and signed by Johnson on July 6, the handling of DCIS internal review mat- Steakley and Johanson cases, the majority 1994 ters involving Special Agents (SA) Hollings- Staff received allegations from a current and (4) Formal Statement ‘‘signed and sworn’’ jointly by Clark and Bonnar, July 19, 1994 worth, Steakley and Walinski. a former DCIS agent that Walinski had fal- SA Larry Hollingsworth: SA Hollingsworth (5) Memo from Bonnar to Dupree and Hol- sified reports during two other internal in- was employed by the DCIS from November lingsworth, dated August 9, 1994 transmit- vestigations, but the staff was unable to in- 1983 until his retirement in September 1996. I ting Young’s signed statement, dated August vestigate and substantiate those allegations. first met SA Hollingsworth some time after Conclusion 4, 1994, to Johnson (6) Letter from Johnson’s attorney, his hiring during which time we were peers, Based on a thorough review of all docu- Luciano A. Cerasi, to Dupree, August 8, 1994 I as Special Agent in Charge (SAC) of the ments bearing on the Steakley and Johanson (7) Case Re-Initiation, Memo signed by SA New York Field Office and he as SAC of the cases, it is crystal clear that senior DCIS Timothy L. Schroeder, September 23, 1994 Chicago Field Office. management, including Mancuso, were (8) Notice of Proposed Suspension, Memo In July 1995, I identified a photograph in a aware of the allegations about Walinski’s from Smith to Johanson, November 23, 1994 law enforcement journal as possibly that of witness reports. Although management made (9) Amendment to Final Decision on Pro- SA Hollingsworth. The unidentified indi- certain administrative adjustments in the posed Suspension, Memo from Dupree to vidual was being sought by the Department wake of rank and file complaints about Johnson, February 9, 1995 of State (DoS) relative to the filing of a false Walinski’s reports, management never at- (10) Employee Performance Rating, IG passport application. I immediately con- tempted to determine if those allegations Form 1400.430–2 for 8/26/93 thru 3/31/94 tacted the DoS and reported my suspicions had merit. Management never attempted to (11) Incentive Award Nomination and Ac- to them and later assisted the DoS in ar- reconcile Walinski’s reports with the facts. tion, IG Form 1400.430–3, for 8/26/93 thru 3/31/ ranging a surveillance of SA Hollingsworth Independent interviews of Gianino and Clark 94 in anticipation of a search of his home. Fol- would have quickly established the fact that (12) Notification of Personnel Action, Form lowing the search, he was immediately Walinski had fabricated at least two witness 50–B, Special Act or Service Award, 5/2/93 barred from the worksite and kept from any interviews. This very simple step would have (13) Employee Performance Rating, IG active service with this organization. Al- led to appropriate corrective action. Instead, FORM 1400.430–2, for 4/1/94 thru 7/2/94 though he was arrested in July 1995, he was the record shows that Walinski was never (14) Notification of Personnel Action, Form not indicted until January 1996. During those disciplined. In fact, the record shows that 50–B, Reassignment, 7/3/94 seven months, while the DoS investigation Walinski actually was given a cash award— (15) Memo of interview with Walinski, Sep- was ongoing, SA Hollingsworth was allowed at least three weeks after management tember 8, 1999 to use sick leave to the extent verifiable by

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.033 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13657 medical authorities and accumulated annual has questioned the accuracy of several re- (1) the President has negotiated with that leave. Subsequent to his indictment, he was ports of interview prepared by SA Walinski country a side agreement concerning labor suspended without pay and denied further to include a report dealing with SA standards, similar to the North American use of leave. He entered a conditional guilty Steakley. It is my understanding that your Agreement on Labor Cooperation (as defined plea in March 1996 and was sentenced in June staff perceives that allegations concerning in section 532(b)(2) of the Trade Agreements 1996. SA Walinski were not pursued with the same Act of 1979 (19 U.S.C. 3471(b)(2)); and During this time period I was involved in a tenacity shown in the SA Steakley inves- (2) submitted that agreement to the Con- variety of administrative matters in which tigations. gress. SA Hollingsworth contested actions proposed I was not aware of many of the facts al- The PRESIDING OFFICER. The Sen- by his supervisor. I, as Director, DCIS, at the leged in this matter until reviewing docu- ments in response to the inquiry of your ator from South Carolina. time was his second level supervisor and Mr. HOLLINGS. Mr. President, the acted as deciding official in each of these Subcommittee. I did, however, have a gen- matters. These administrative actions were eral concern at the time regarding the han- amendment has been read in its en- separate and distinct from the investigation dling of internal investigations. As a result, tirety. It is very brief and much to the by the DoS and prosecution by the Depart- I directed that the internal review process be point. It is similar to the North Amer- ment of Justice. restructured so as to ensure that all future ican agreement on labor. When we de- My next involvement with this matter interviews be taped and transcribed to pre- bated NAFTA at length, there was a began when SA Hollingsworth appealed a No- clude any further dispute as to reporting. I great deal more participation and at- was also appraised by my deputy that SA tice of Proposed Removal issued by his su- tention given. In these closing days, pervisor. On August 23, 1996, his attorney re- Walinski was being transferred from his du- quested an extension until September 13, ties to a position in the DCIS Training everyone is anxious to get out of town. 1996, to file a written response and notified Branch. It is my understanding that SA Most of the attention has been given, us of his intent to make a subsequent oral Walinski received a downgraded appraisal as of course, to the appropriations bills presentation. As deciding official, I granted a result of his poor performance as well as a and the budget, and avoiding, as they this request consistent with past DCIS prac- written letter cautioning him as to the im- say, spending Social Security after tice and, to preclude further delay, I simul- portance of accuracy in his reporting. they have already spent at least $17 bil- In closing, I hope that my insights have taneously scheduled the oral presentation lion, according to the Congressional for September 23, 1996. However, four days provided you the information you need to ac- curately assess these cases. I appreciate your Budget Office. prior to his scheduled oral presentation, SA I ask for the yeas and nays on the Hollingsworth retired. assurance that this letter will be included in SA Hollingsworth was provided the same any report that may be issued on this topic amendment. due process afforded to all other DCIS spe- and look forward to an opportunity to review The PRESIDING OFFICER. Is there a cial agents in the form of a review by the your draft report. sufficient second? Special Agents Administrative Review Board Sincerely, There is not a sufficient second. and reasonable time to prepare a written and DONALD MANCUSO, Mr. HOLLINGS. Mr. President, I had oral response to a Notice of Proposed Re- Acting Inspector General. a very interesting experience with re- moval. Variation from past practice would Mr. GRASSLEY. Mr. President, I spect to labor conditions in Mexico have been unwarranted and inconsistent think it is imperative that Congress prior to the NAFTA agreement. I want- with my experience as a deciding official in continue to send the strongest possible ed to see with my own eyes exactly dozens of disciplinary proceedings. signal only that the highest standards what was going on. I visited Tijuana, SA Hollingsworth’s criminal conduct was and integrity are acceptable among our both inexcusable and inexplicable. His viola- which is right across the line from tion of law was totally out of character and law enforcement and watchdog commu- southern California. inconsistent with his job performance and nities, the more we will ensure that I was being led around a valley. lengthy career. I noted this same observa- outcome. I yield the floor. There were some 200,000 people living tion in a letter to the sentencing judge as I f in the valley, with beautiful plants, went on record describing SA Hollings- RECESS mowed lawns, flags outside. But the worth’s job performance. 200,000 living in the valley were living Throughout this process, the OIG was pro- The PRESIDING OFFICER. Under in veritable hovels; the living condi- vided advice by personnel and legal experts. the previous order, the hour of 12:30 The course of action taken in this case was tions were miserable. p.m. having arrived, the Senate will I was in the middle of the tour when one of the several available options per- now stand in recess until 2:15 p.m. mitted by Federal personnel guidelines. the mayor came up to me and asked if today. SA Gary Steakley: SA Steakley began his I would meet with 12 of the residents of employment with DCIS in December 1987. Thereupon, at 12:30 p.m., the Senate recessed until 2:15 p.m.; whereupon, the that valley. I told him I would be glad From that time until he entered the Work- to. He was very courteous and gen- er’s Compensation program in February 1993 Senate reassembled when called to as a result of a traffic accident involving a order by the Presiding Officer (Mr. erous. I met with that group. In a few sen- Government vehicle, he worked in a variety GRAMS). tences, summing up what occurred, the of positions within DCIS. As Director, DCIS, f I selected him for several positions and pro- Christmas before—actually around New moted him to his last job as manager of a AFRICAN GROWTH AND Year’s—they had a heavy rain in south- DCIS investigative office in California. OPPORTUNITY ACT—Continued ern California and in the Tijuana area. Subsequent to his vehicle accident, SA The PRESIDING OFFICER. The Sen- With that rain, the hardened and crust- Steakley was the subject of several adverse ed soil became mushy and muddy and personnel and disciplinary actions. With the ator from South Carolina. exception of ensuring that internal reviews AMENDMENT NO. 2379 boggy, and the little hovels made with proceeded in due course, my actions with re- (Purpose: To require the negotiation, and garage doors and other such items spect to SA Steakley were taken as the de- submission to Congress, of side agreements started slipping and sliding. In those ciding official in these cases. In addition, as concerning labor before benefits are re- streets, there are no light poles and Director, I proposed to involuntarily transfer ceived) there are no water lines. There is noth- him in order to ‘‘backfill’’ his management Mr. HOLLINGS. I call up my amend- ing, just bare existence. billet after his accident. In this case, the ment No. 2379 and ask the clerk to re- They were all trying to hold on to then Deputy Inspector General acted as de- port it. their houses and put them back in ciding official. SA Steakley was treated fairly by DCIS, The PRESIDING OFFICER. The order. These particular workers missed although he has repeatedly alleged that he clerk will report. a day of work. Under the work rules in was subjected to prohibited personnel prac- The assistant legislative clerk read Mexico, if you miss a day of work, you tices. His allegations have been reviewed in as follows: are docked 3 days. So they lost 4 days’ various venues, including the Office of Spe- The Senator from South Carolina [Mr. pay. cial Counsel who, in December 1998, closed HOLLINGS] proposes an amendment numbered Around February, one of the workers their file and declined to pursue the case fur- 2379: was making plastic coat hangers—the At the appropriate place, insert the fol- ther. industry had moved from San Angelo SA Matthew Walinski: SA Walinski held a lowing: variety of positions in DCIS from his initial SEC. . LABOR AGREEMENT REQUIRED. to Tijuana. They had no eye protection hiring in August 1987, until his transfer to The benefits provided by the amendments whatsoever. The machines were stamp- the Office of Inspector General, Department made by this Act shall not become available ing out the plastic, and a flick of plas- of the Treasury, earlier this year. Your staff to any country until— tic went into the worker’s eye. The

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.037 pfrm01 PsN: S02PT1 S13658 CONGRESSIONAL RECORD — SENATE November 2, 1999 workers asked for protection and could This is Yolanda Vasquez de Bonilla: ical grievances of factory staff, who are not get any. That really teed them off. I was fired from the Doall Factory No. 3 to- mostly young, female, Indian, and poor. It came to a crisis on May 1 when the gether with 17 others on August 5, 1998. Mr. President, in Honduras: favorite supervisor, a young woman From the beginning, the unbearable work- A two-week strike at the Korean-owned who was expecting at the time, went to ing conditions in the factory impressed me a Kimi de Honduras maquiladora ended Sep- the front office. She said she was sick great deal, which included obligatory over- tember 2 after they dropped criminal charges time hours every day of the week, including and would have to take off the rest of against the union and accepted a new pay Saturdays and sometimes Sundays. On alter- scale. The strike began August 18 when 500 the day. They said: No, you are not nate days, we worked until 11 p.m., and some workers, mostly women, demanded compli- taking off the rest of the day; you are weeks we were obligated to work every day ance with a March union contract. [This par- working. Later that afternoon, she until 11 p.m. at night. We were mistreated, ticular plant] produces apparel for U.S. re- miscarried, and that exploded the including being yelled at and having vulgar tailer J.C. Penney and is part of the eight- movement of these 12 workers. They words used against us . . . humiliated for plant Continental Park, a free-trade zone in said: We are not going to stand for this wanting to use the restrooms, and being de- La Lima. Unionized Kimi workers closed anymore. We are going to get some nied permission to visit the Salvadoran So- down Continental [in] August with block- cial Security Institute for medical consults. ades, but anti-riot police arrived August 30. consideration of working conditions The highest wage I received, working 7 In solidarity, most workers from other fac- and pay. days a week and more than 100 hours, was tories refused to enter the zone, but were The workers chipped in money and 1,200 colones (U.S. $137). Nevertheless, I ac- subsequently beaten and gassed by the po- sent two of the folks up to Los Angeles cepted all this that I have briefly narrated lice. Kimi union officials promptly distrib- to employ a lawyer. They discovered since I have two children who are in school uted leaflets to workers of other factories, that when the plant moved from San and I must support them. urging them to return to work and prevent Angelo to Mexico, they filled out pa- They go on to tell similar stories more violence. Some 100,000 workers are em- pers showing how the plant was orga- time and again about different workers ployed in the country’s 200 maquilas, which export $1.6 billion in goods to the United nized and that they had a union and at that plant in El Salvador. States each year. swapped money each month, but no With the limited time I have, I will You have the Roca Suppliers Search shop steward or union representatives reference the United States firm in maquiladora in El Salvador: ever met with them. They never knew Guatemala City of Phillips-Van anything about a union. Heusen. The Roca Suppliers Search maquiladora in the town of Mejicanos was abruptly closed Under the work rules of the country Van Heusen closed its Camisas Modernas November 19, leaving 240 workers laid off. of Mexico, if one tries to organize a plant in Guatemala City just before its 500 The workers say production was moved to plant once one is already organized, workers were to receive their legally man- another factory after a group of 22 workers then that person is subject to firing, dated year-end bonuses and go on a three- met with representatives of the progressive and all 12 of them were fired. They lost week break. union federation. [They really work and their jobs, their livelihoods. That is That is typical of what they do if make] U.S. brands including Calvin Klein what the mayor wanted me to know they get any kind of benefits at all. and L.L. Bean. The factory’s owner said the and understand. They were out of Just at the end of the year, when they shop closed due to a lack of raw materials. Labor activists noted that the termination work. are supposed to get their bonuses, they go down and close the plant. came just before legally mandated Christmas My colleagues talk about the immi- bonuses. The bonuses average about $40. gration problem. If I had any rec- Unionist and former Zacapa municipal worker Angel Pineda was ambushed and shot Then again, in El Salvador: They ommendation for the 12, I would say: work from Monday through Friday, Sneak across the border—don’t worry to death March 8 in the village of San Jorge, Zacapa. Pineda was a mayoral candidate from 6:50 a.m. to 6:10 p.m., and on Sat- about it—and find work in California nominated by the leftist New Guatemala urday until 5:40 p.m., and occasional or South Carolina or some other place Democratic Front. According to the Guate- shifts to 9:40 p.m. It is common for the because they could not get a job any malan Workers Central, Pineda had partici- cutting and packing departments to longer in the country of Mexico. pated in a campaign to remove Zacapa work 20-hour shifts from 6:50 a.m. to 3 That concerned me, and I have fol- Mayor Carlos Roberto Vargas on corruption a.m. lowed the work conditions. That is one charges. Another union leader and Vargas opponent was shot to death in January. Anyone unable or refusing to work the of the reasons with NAFTA, while I op- overtime hours will be suspended and fined, posed it, I wanted to be sure we had the Then again in Guatemala: and upon repeat ‘‘offenses,’’ they will be side agreements. The side agreements A recent U.N. report said poverty encom- fired. were established. The work center is in passes 60 percent of the urban population and There is no time clock. Records of an em- Dallas. The Secretary of Labor meets 80 percent of rural inhabitants. Figures from ployee’s overtime hours are written in a log with them. They are trying to work on the Institute for Economic and Social Inves- by the supervisor. Workers report that it is this problem. tigations of San Carlos University are even not uncommon to be short changed two more devastating, reporting that 93 percent I have references to some of the hours of overtime if the supervisor is angry of the indigenous population lives in poverty with them. working conditions in El Salvador. and 81 percent cannot meet nutritional There is a one 40-minute break in the day On March 13, 1999, five workers from needs. for lunch from noon to 12:40 p.m. the Doall factory, where Liz Claiborne Mr. President, again: All new workers must undergo and pay for garments are sown, met with a team of a pregnancy test. If they test positive, they Workers from more than a dozen different graduate students from Columbia Uni- are immediately fired. The test costs two factories complain about everything from re- days’ wages. versity who were in El Salvador con- stricted bathroom visits and sore backs to il- ducting a study of wage rates in rela- legal firings and abuse. I ask unanimous consent that this tion to basic survival needs. Sewing machines hum and rock music particular group of conditions in El A few days later, all five workers blares as 13-year-old Maria furiously folds Salvador be printed in the RECORD. were fired. Doall’s chief of personnel clothes inside a Guatemalan factory called There being no objection, the mate- simply told them: You are fired be- Sam Lucas S.A. rial was ordered to be printed in the cause you and your friends cried before Maria is a 13-year-old. According to RECORD, as follows: the gringos, and the Koreans don’t the Wall Street Journal, of course, that KATHIE LEE SWEATSHOP IN EL SALVADOR want unionists at this factory. has nothing to do with any employee in CARIBBEAN APPAREL, S.A. DE C.V., AMERICAN So much for workers’ rights in that the Caribbean Basin Initiative or Afri- FREE TRADE ZONE, SANTA ANA, EL SALVADOR Liz Claiborne plant. ca. A Korean-owned maquila with 900 plus There are 225 maquila assembly fac- The Grade 2 dropout folds 50 shirts an workers. tories in El Salvador, 68,000 workers hour, or 2,700 shirts a week that will end up Death threats sending 581 million garments a year to in North American stores. Workers illegally fired and intimidated the United States worth $1.2 billion. Sometimes Maria’s boss extends her 10- Pregnancy tests hour day and asks her to stay until 10:30 p.m. Forced overtime Yet there is not one single union with or all night, assembling clothes for export in Locked bathrooms a contract in any of these maquila fac- this tax-free plant called a maquila. . . . Starvation wages tories because it is against the law; it Forced overtime, union busting, no social Workers paid 15 cents for every $16.96 pair of is not allowed. security benefits and unpaid work are typ- Kathie Lee pants they sew

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.041 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13659

Cursing and screaming at the workers to go That means that wages amount to only 9⁄10 of 14-15-16 year old minors have been em- faster one percent of the retail price of the gar- ployed in the plants. Denial of access to health care ment. (62 workers on a production line have Public access to the plant is prohibited by Workers fired and blacklisted if they try to a daily production quota of sewing 2,000 pairs several heavily armed guards. defend their rights of Kathie Lee pants each 8-hour shift. 62 Caribbean Apparel is inaccessible to public workers × $4.79 = 296.98/2,000 × $16.96 = $33,920/ KATHIE LEE/WAL-MART SWEATSHOP IN inspection. The American Free Trade Zone is 33,920) 296.98 = .0087553/or 9⁄10 of one percent × GUATEMALA surrounded by walls topped with razor wire. $16.96 = 15 cents) SAN LUCAS, S.A., SANTIAGO, SACATEPEQUEZ, Armed guards are posted at the entrance Denied Access to Health Care GUATEMALA gate. Despite the fact that money is deducted 1,500 workers Labels from the workers’ pay, Caribbean Apparel The San Lucas factory sews Kathie Lee jack- Kathie Lee (Wal-Mart), Leslie Fay, Koret, management routinely prohibits the workers ets and dresses. Cape Cod (Kmart) access to the Social Security Health Care Sweatshop conditions Clinic. Nor does the company allow sick Sweatshop Conditions at Caribbean Apparel Forced Overtime: 11 to 141⁄2 hour shifts, 6 Forced Overtime: 11-hour shifts, 6 days a days. If a worker misses a day, even with days a week. Monday to Saturday: 7:30 a.m. week—Monday–Friday: 6:50 a.m. to 6:10 p.m. written confirmation from a doctor that she to 6:30 p.m., sometimes they work until 10:00 Saturday: 6:50 a.m. to 5:40 p.m. There are oc- or her child was very sick, she will still be p.m. The workers are at the factory between casional shifts to 9:40 p.m. It is common for punished and fined two or three days pay. 66 and 80 hours a week. the cutting and packing departments to If the workers are seen meeting together, Refusal to work overtime is punished with work 20-hour shifts from 6:50 a.m. to 3:00 a.m. they can be fired. If the workers are seen dis- an 8-day suspension without pay. The second Anyone unable or refusing to work the cussing factory conditions with independent or third time this ‘‘offense’’ occurs, the overtime hours will be suspended and fined, human rights organizations they will be worker is fired. and upon repeat ‘‘offenses’’ they will be fired. If workers are suspected of organizing Below Subsistence Wages: For 44 regular fired. a union they will be fired and blacklisted. hours, the pay is $28.57, or 65 cents an hour. There is no time clock. Records of an em- Fear and Repression—There are No Rights at This does not meet subsistence needs. ployee’s overtime hours are written in a log Caribbean Apparel Armed security guards control access to by the supervisor. Workers report that it is Fear and repression permeate the factory. the toilets, and check the amount of time not uncommon to be short changed two the women spend in the bathroom, hurrying hours of overtime if the supervisor is angry The workers have no rights. Everyone knows that they can be illegally fired, at any time, them up if they think they are spending too with them. much time. There is a one 40-minute break in the day for being unable to work overtime, for need- Public access to the plant is prohibited by for lunch from noon to 12:40 p.m. ing to take a sick day, for questioning fac- Mandatory Pregnancy Tests: All new work- tory conditions or pay, for talking back to a several heavily armed guards. ers must undergo and pay for a pregnancy supervisor, or for attempting to learn and Mr. HOLLINGS. Mr. President, again test. If they test positive they are imme- defend their basic human and worker rights. quoting: diately fired. The test costs two days wages. Fired for Organizing In September, Jiovanni Fuentes, a union Below Subsistence Wages: The base wage at Six workers have been illegally fired begin- organizer assisting the workers at Caribbean Caribbean Apparel is 60 cents an hour or $4.79 ning in August for daring to organize a union Apparel, received a death threat from the for the day. This wage meets only 1⁄3 of the at Caribbean Apparel. All six workers were company. He was told that he and his friends cost of living. elected officials to the new union. Searched On the Way In and Out: Workers should leave work, or they would be killed. are searched on the way in—candy or water List of Fired Workers He was told that he was dealing with the Mafia, and in El Salvador, it costs less than is taken away from them which the company Blanca Ruth Palacios $15 to have someone killed. says might soil the garments. On the way Lorena del Carmen Hernandez Moran out, the workers are also searched. Oscal Humberto Guevara I could go on and on. Obviously, The Factory is Excessively Hot: The factory Dalila Aracely Corona these working conditions are not to the lacks proper ventilation. There are few fans. Norma Aracely Padilla attention of this particular body. They In the afternoon the temperature on the Jose Martin Duenas could care less. shop floor soars. Death Threat No Clean Drinking Water: Only tap water is Labor conditions are very important. available, which is dirty and warm. Carib- In September, Jiovanni Fuentes, a union The standard of living in the United bean Apparel refuses to provide cold purified organizer assisting the workers at Caribbean States of America is an issue. When drinking water. Apparel, received a death threat from the you open up a manufacturing plant, it Bathrooms Locked: The workers are not al- company. He was told that he and his friends is required that you have clean air, lowed to get up or move from their work should leave the work or they would be clean water, minimum wage, safe killed. He was told that he was dealing with sites. The bathrooms are locked from 7:00 working machinery, safe working con- a.m. to 8:00 a.m., and again from 5:00 p.m. to the Mafia, and in El Salvador it costs less 6:00. Workers need permission to use the than $15 to have someone killed. ditions, plant closing notice, parental bathroom, which is limited to one visit per leave, Social Security, Medicare, Med- morning shift and one during the afternoon KATHIE LEE/WAL-MART SWEATSHOP IN MEXICO icaid, and unemployment compensa- shift. The workers report that the bathrooms HO LEE MODAS DE MEXICO, PUEBLA, MEXICO tion. All of these particulars are need- are filthy. 550 workers ed. These elevate to the high standard Pressure and Screaming to go Faster: There is The Ho Lee factory sews women’s blazers, of American living. And it deserves constant pressure to work faster and to meet pants and blouses for Wal-Mart and protection. At least it deserves a nego- production goals of sewing 100–150 pieces an other labels. Kathie Lee garments have hour. Mr. Lee, the production supervisor, tiation—which we included in the been sewn there. curses and screams at the women to go fast- NAFTA agreement—in this particular er. Some workers have been hit. For talking Sweatshop conditions CBI and sub-Saharan agreement. back to a supervisor the women are locked in Forced Overtime: 121⁄2 to 14 hour shifts, 6 I yield the floor and reserve the re- isolation in a room. Most cannot reach their days a week. Monday to Friday: 8:00 a.m. to mainder of my time. daily production quota and if they do the 8:30 p.m. Saturday: 8:00 a.m. to 4:00 p.m. The PRESIDING OFFICER. Who company arbitrarily raises the goal the next There is one 40-minute break in the day for seeks time? day. lunch. Mr. HOLLINGS. Mr. President, I ask Where a Worker Spends Money The workers are at the factory between 67 and 79 hours a week. for the yeas and nays on the amend- Rent for two small rooms costs $57.07 per New Employees are forced to take a man- ment. month, or $1.88 a day. datory pregnancy test. The PRESIDING OFFICER. Is there a The round trip bus to work costs 46 cents. For a 48-hour week the workers earn $29.57 sufficient second? A modest lunch is $1.37. or 61 cents an hour which is well below a sub- There appears to be a sufficient sec- At the end of the day sewing Kathie Lee sistence wage. garments a worker is left with just $1.08, ond. Workers are searched on the way in and The yeas and nays were ordered. which is not even enough to purchase supper out of the factory. for a small family. Unable to afford milk, Mr. HOLLINGS. I thank the Chair. The supervisors yell and scream at the The PRESIDING OFFICER. Who the workers’ children are raised on coffee women to work faster. and lemonade. Bathrooms are filthy and lack toilet seats seeks time? 15 Cents to Sew Kathie Lee Pants or paper. The workers have to manually Mr. FEINGOLD addressed the Chair. The women earn just 15 cents for every flush the toilet using buckets of water. Some The PRESIDING OFFICER. The Sen- pair of $16.96 Kathie Lee pants they sew. of the toilets lack lighting. ator from Wisconsin.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.082 pfrm01 PsN: S02PT1 S13660 CONGRESSIONAL RECORD — SENATE November 2, 1999 Mr. FEINGOLD. I ask unanimous nomic Cooperation. It quotes an ana- ing the difficult negotiations of side consent to lay the pending amendment lyst as follows. This is a direct quote agreements which would delay the in- aside. we have on this board. This is what centive the bill would create. That, I The PRESIDING OFFICER. Without they say on the web site: argue, is of no help to these developing objection, it is so ordered. Setting up assembly plants with Chinese countries and will not lead to any AMENDMENT NO. 2428 equipment technology and personnel could greater improvement in the labor (Purpose: To strengthen the transshipment not only greatly increase sales in African standards provisions that are already provisions) countries but also circumvent quotas im- incorporated into these programs. Vir- Mr. FEINGOLD. Mr. President, I call posed on commodities of Chinese origin by tually every study available indicates European and American countries. up amendment No. 2428 and ask for its that labor standards rise with a coun- immediate consideration. That is very explicit and very inten- try’s level of economic development. The PRESIDING OFFICER. The tional. The Chinese know standard The goal of the bill is to give these clerk will report. United States protections against countries an opportunity to tap private The legislative clerk read as follows: transshipment are weak, and they ob- investment capital as a means of en- The Senator from Wisconsin [Mr. FEIN- viously intend to exploit them. couraging economic development and GOLD] proposes an amendment numbered The African Growth and Opportunity economic growth. That is the most cer- 2428. Act, as it currently stands without my tain way to ensure these countries Mr. FEINGOLD. Mr. President, I ask amendment, relies on those same weak have the ability to enforce any labor unanimous consent that reading of the protections—the same textile visa sys- standards they choose to enact into amendment be dispensed with. tem that China and others have suc- law. The PRESIDING OFFICER. Without cessfully manipulated in the past. This Frankly, the worst opponent of labor objection, it is so ordered. inadequate system requires govern- standards is the lack of economic op- (The text of the amendment is print- ment officials in the exporting country portunities in these countries. It is dif- ed in today’s RECORD under ‘‘Amend- to give textiles visas certifying the ficult to insist on safe working condi- ments Submitted.’’) goods’ country of origin for those tex- tions on the job and negotiate a living Mr. FEINGOLD. Mr. President, as I tiles to be exported. Too often, this wage when you have no other job op- have said before, unless the African isn’t good enough; corrupt officials portunities. The point of this legisla- Growth and Opportunity Act is signifi- simply sell the visas to the highest bid- tion is to provide those job opportuni- cantly improved, it will fail to stimu- der. ties. Creating obstacles to that goal late any meaningful growth in Africa; What does this amendment do? This will diminish, not enhance, the positive it will fail to provide significant oppor- amendment changes this failing sys- impact the bill would have on labor tunities for commerce or development; tem. It makes U.S. importers respon- standards. and, in fact, if we do not make some sible for certifying where textiles and The second reason I oppose the changes, it may do harm to both Afri- apparel are produced. This gives the amendment is that it essentially de- cans and Americans. So what this U.S. entities a strong financial stake in pends on economic sanctions to work. amendment does is take an important the legality of their imports. The threat is that the economic bene- step toward preventing harm and im- This amendment allows us not to fits of the beneficiary countries will be proving this trade legislation. rely simply on foreign officials. This cut off if the countries do not comply Mutually beneficial economic legisla- standard relies on the American com- with the terms of some agreement yet tion has to be fair to all parties in- panies that operate right here under to be negotiated. That not only under- volved. The African Growth and Oppor- American law, and it holds those com- cuts the investment incentive by in- tunity Act must be amended to ade- panies liable for any false statements creasing the uncertainty of a country’s quately address the problems of trans- or omissions in the certification proc- participation in the program; it also shipment, not just to make certain ess. does little to raise labor standards. that it is fair to Africans but also to This amendment lays out clear pro- What is needed is a cooperative ap- ensure Americans are not cheated and cedures and tough penalties so that proach bilaterally between the United that American law isn’t broken. these regulations will actually work. States and the particular developing Let me talk a little bit about trans- If the Senate agrees to this amend- country and among the countries of shipment. Transshipment occurs when ment, countries such as China that the region as a whole. textiles originating in one country are want to evade United States trade reg- The lesson of the NAFTA side agree- sent through another before they come ulations will have to rethink their de- ment, in my view, is that sanction to the United States. What this does is, signs on Africa. If we agree to this mechanisms have done little to encour- the actual country of origin seeks to amendment, the opportunities prom- age better labor practices. What has disguise itself and therefore ignore our ised by this legislation really will go to worked under the NAFTA agreement is U.S. quotas. This is not a minor mat- Africans, and not to third parties. If we the cooperative ventures of the three ter. Approximately $2 billion worth of agree to this amendment, Americans participants. What is needed in the illegally transshipped textiles enter will not lose their jobs because of context of both regions targeted by the United States every year. AGOA’s inadequate transshipment pro- this bill is a stronger effort among the The U.S. Customs Service has deter- tection. participants, with the support of the mined that for every $1 billion of ille- Mr. President, I ask for the yeas and United States, to tackle common prob- gally transshipped products that enter nays on this amendment. lems facing their strongest resource— the United States, 40,000 jobs in the The PRESIDING OFFICER. Is there a their workforce. textile and apparel sector are lost. sufficient second? The Senate substitute before us does Let me repeat that. There is a sufficient second. not preclude those sorts of construc- The Customs Service says that every The yeas and nays were ordered. tive efforts by the President. Indeed, time we have a billion dollars of ille- Mr. FEINGOLD. Mr. President, I the President would do well to pursue a gally transshipped products entering yield the floor. similar model in the context of our the United States, we lose 40,000 jobs in The PRESIDING OFFICER. The Sen- broader relations with our African, this country in that area of our econ- ator from Delaware. Caribbean, and Central American omy. AMENDMENT NO. 2379 neighbors. The model offered by the Failure to protect against trans- Mr. ROTH. Mr. President, I oppose pending amendment would not, in my shipment surely does harm. Those who the Hollings amendment for two rea- judgment, help that goal. think transshipment isn’t going to be a sons. I therefore urge my colleagues to op- problem in Africa had better think First, as I have stated previously, the pose the amendment. At the appro- again. goal of this legislation is to encourage priate time, I will make a motion to We have had a chance to take a look investments in Africa, the Caribbean, table the amendment. at the official web site of the China and Central America. The amendment The PRESIDING OFFICER. The Sen- Ministry of Foreign Trade and Eco- would undermine that effort by requir- ator from South Carolina.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.045 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13661 Mr. HOLLINGS. Mr. President, I am [From the Gazette, (Montreal), Oct. 27, 1999] The only case to be settled—the one that sort of stunned in a way because the CANADIANS CHALLENGE CALIFORNIA involved MMT—cost Canadian taxpayers $20 argument is made that this is going to POLLUTION RULE UNDER NAFTA million. forestall the jobs that are intended (By Andrew Duffy) Mr. HOLLINGS. Similarly, I have an under the bill. OTTAWA.—A Canadian firm has filed a article about the side deals to the trade Could it really be that we want to fi- NAFTA environmental complaint against agreement giving labor and environ- nance 13-year-olds and child labor? California, charging the state failed to pro- mental issues a new form of signifi- Could it be that they have to work tect its groundwater from leaky gasoline- cance that I ask unanimous consent be 100 hours a week at 13 cents an hour? storage tanks. printed in the RECORD. Could it be if they become pregnant The unusual move by Vancouver’s There being no objection, the article and have to go home sick that they are Methanex Corporation, which produces a gasoline additive being phased out by Cali- was ordered to be printed in the fired? fornia, comes in addition to the company’s RECORD, as follows: I could go down the list of things. $1.4-billion lawsuit against the state and the [From the Chicago Tribune, Nov. 29, 1998] That is what I just pointed out. I am U.S. government, an action launched under A VISION UNFULFILLED confident my colleagues don’t want to Chapter 11 of the North American Free Trade (By Karen Brandon) finance those kinds of atrocities. Agreement. I am just stunned that someone Methanex argues California’s ban on MTBE The new pier’s long, crooked finger points would say this would hold it up because (methyl tertiary-butyl ether) is unfair be- deep into the Caribbean Sea near the fragile cause the problem lies not with the gasoline coral reef off the coast of Cozumel, Mexico. the agreement is yet to be had. The The mere existence of the structure offers agreement is to be joined by the au- additive, but with aging underground gas storage tanks that leak into aquifers. a metaphor for the paradoxes raised by the thorities and the Governments of El ‘‘It thus treats a symptom (MTBE) of gaso- world’s most ambitious attempt to tie envi- Salvador, Guatemala, Honduras, and line leakage rather than the leakage itself, ronmental concerns to international free the other countries down there in the deflecting attention from the state’s failure trade. Caribbean Basin. If they haven’t to enforce its environmental laws,’’ says the The Puerta Maya pier dispute is the sole agreed, obviously, they couldn’t be in company’s environmental complaint, which case to wind its way completely through the violation, or they couldn’t be with the has just been submitted to the Commission labyrinth of bureaucracy established to re- solve environmental conflicts under the side agreement. on Environmental Co-operation. The Montreal-based commission was estab- North American Free Trade Agreement. That is why it is very innocent lan- Environmentalists persuasively argued guage suggesting that the benefits lished under a NAFTA side-agreement to en- sure Canada, Mexico and the U.S. maintain that the Mexican government violated its don’t take effect until we have had a environmental standards in the face of trade own environmental laws when it assessed the chance to sit down, both sides, and de- pressures. potential impact of the pier, designed to ac- cide what will be agreed to and what In its 16-page submission—the first of its commodate more and larger cruise ships and will be done by the particular govern- kind from a corporation—Methanex contends to bring more tourists to the region. ments. So it would be violations of California has not enforced existing laws de- According to the 55-page ‘‘final factual their own government policies. signed to protect groundwater from contami- record’’ that followed an 18-month investiga- nation by leaky underground gas tanks. tion, the environmentalists essentially won. AMENDMENT NO. 2483 Methanex is North America’s largest sup- ‘‘We proved that the Mexican government (Purpose: To require the negotiation, and plier of MTBE, a gasoline additive that violated the law,’’ said Gustavo Alanis, submission to Congress, of side agreements makes fuel burn more completely in a car president of the Mexican Environmental Law concerning the environment before bene- engine, thus reducing tailpipe emissions. Center, one of the organizations that raised fits are received) Earlier this year, California Governor Gray the issue. ‘‘It’s an enormous victory for Mr. HOLLINGS. Mr. President, I am Davis issued a regulation that will ban international environmental rights.’’ not trying to forestall. I am trying to MTBE by 2002 because of concerns that it’s But the victory is only on paper. The comply with the requirements. I call polluting lakes and drinking water in the Puerta Maya pier was built, and tourists now disembark from cruise ships there to stroll up my amendment on the environ- state. ‘‘We believe that what’s occurring in Cali- its walkway lined with liquor, perfume and mental side, and I ask unanimous con- fornia is plain wrong from an environmental souvenir shops. sent to set aside the pending amend- perspective,’’ said Methanex vice-president As the outcome of the pier project sug- ment. Michael Macdonald. gests, the environmental legacy of the free The PRESIDING OFFICER. Without ‘‘People have lost sense of the plotline: trade agreement begun nearly five ago is objection, it is so ordered. that MTBE only gets into the environment contradictory. The clerk will report. through gasoline releases. We’re trying to The very trade agreement that elevated The legislative clerk read as follows: focus attention on the root cause of the environmental concerns to an unprecedented The Senator from South Carolina (Mr. issue, which is leaking underground storage level, making ‘‘sustainable development’’ one of its goals, also gave businesses a new HOLLINGS) proposes an amendment numbered tanks.’’ 2483. California has the strictest air-quality con- tool to combat pollution regulations they At the appropriate place, insert the fol- trols in North America. As part of those con- consider onerous. The measure, an invest- lowing: trols, oil-refiners in the state were required ment provision that has been interpreted to allow companies to sue countries whose pol- SEC. . ENVIRONMENTAL AGREEMENT RE- to improve their gasolines during the 1990s; QUIRED. many turned to MTBE to cut emissions. lution regulations hinder profits, is essen- The benefits provided by the amendments But California researchers now say MTBE tially unaffected by the environmental side made by this Act shall not be available to is so highly soluble—more so than other gas accord and lies beyond the direct jurisdiction any country until the President has nego- components—that it travels far from the of the Commission for Environmental Co- tiated with that country a side agreement source of gas leaks to pollute groundwater. operation, the organization created to over- concerning the environment, similar to the MTBE contamination has forced the clos- see environmental concerns. North American Agreement on Environ- ing of wells in Santa Monica, Lake Tahoe, In analyzing the impact of the agreement’s mental Cooperation, and submitted that Sacramento and Santa Clara, according to a overall environmental agenda, the Tribune agreement to the Congress. state auditor’s report issued last year. The interviewed scores of economists, legal ex- perts, government officials and environ- Mr. HOLLINGS. Mr. President, the same report said evidence from animal stud- ies suggests the chemical compound may be mental activists in Canada, Mexico and the emphasis in this Amendment is similar a human carcinogen. United States. to the North American Agreement on Methanex has notified the U.S. govern- The free trade agreement, with its side ac- Environmental Cooperation. ment it will seek damages under NAFTA’s cord, did not force a cleanup of long-polluted It is the very same thing we required Chapter 11, which gives corporations the sites. It did not foist tough new inter- in NAFTA with Mexico and Canada right to sue governments if they make deci- national standards on polluters. It did not with respect to the Canadian side. sions that unfairly damage their interests. create a new police agency to enforce regula- I ask unanimous consent to have Company officials said yesterday they’re tions that had long been ignored. about to enter discussions on an out-of-court The agreement set no minimum or uniform printed in the RECORD an article enti- settlement with the U.S. State Department. standards for the three participating na- tled ‘‘Canadians Challenge California American companies have used Chapter 11 tions. Instead, it promised to see, somehow, Pollution Rules Under NAFTA.’’ to challenge Canadian laws that restricted that each nation enforced its environmental There being no objection, the article the use of another gasoline additive, MMT; laws, and it gave citizens a new inter- was ordered to be printed in the banned the export of PCBs; and halted the national forum to raise complaints about RECORD, as follows: export of fresh water from British Columbia. countries that failed to do so.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.048 pfrm01 PsN: S02PT1 S13662 CONGRESSIONAL RECORD — SENATE November 2, 1999 Even its most passionate advocates con- In June 1997, the Canadian government nancing for projects; and its sister agency, cede the pact has no practical means to pun- banned a gasoline additive after some stud- the Border Environmental Cooperation Com- ish governments or companies other than ies suggested the chemical, MMT, used to mission, which evaluates projects before through the stigma of bad publicity. A provi- boost octane’s power, could cause nerve dam- they can receive the bank’s backing. The in- sion for sanctions exists for a ‘‘persistent age. In retaliation, the manufacturer, Rich- stitutions got off to a slow start, and the pattern’’ of failure to enforce environmental mond, VA-based Ethyl Corp., sued the Cana- chief obstacle for most projects was basic: laws, but many experts say it will never be dian government for $250 million under a They had to find a way to pay for them- used. provision in the trade agreement’s main selves. Moreover, though it technically bars the text, not its environmental side accord, con- The bank’s mission—to finance the weakening of environmental laws to attract tending that the ban essentially amounted projects primarily by guaranteeing loans, investment, the agreement offers no real to an ‘‘expropriation’’ for which it should be rather than by grants—proved an almost in- tool to counteract any decision by the coun- compensated. surmountable hurdle for communities in an tries to alter their own environmental laws The same substance has provoked consider- impoverished region that had never found for any reason, analysts note. able controversy in the United States, where the financial resources or the political will ‘‘The implication is that the three govern- it was among the chemicals banned by the to meet basic needs, such as providing drink- ments are going to be at least as good by the 1977 Clean Air Act. Eighteen years later, ing water and sewers. environment as they are today,’’ said David Ethyl won the right to sell MMT from an ap- ‘‘Is it possible to clean up on a for-profit Gantz, associate director of the National peals court ruling that overturned the Envi- basis 30 years of raping the environment for Law Center for Inter-American Free Trade ronmental Protection Agency’s decision to profit?’’ asked David Schorr, senior trade an- at the University of Arizona in Tucson. That continue the ban in lieu of sufficient studies alyst for the World Wildlife Fund. assumption, he added, is ‘‘dependent on their on the substance’s potential effects. Though other development banks offer goodwill.’’ In July, the Canadian government re- low-interest loans, the North American De- Scenes from the U.S.-Mexico border, the scinded the ban and agreed to pay Ethyl $13 velopment Bank has no such discount. ‘‘Mar- fastest-growing region in North America, million for lost profits and legal costs. ket rates can make a loan package prohibi- tell the story of the vast environmental ‘‘Virtually any public policy which dimin- tively expensive for poor communities,’’ said problems facing Mexico. Explosive popu- ishes corporate profits is vulnerable,’’ said Mark Spalding, a University of California at lation and industrial growth, some of it Michelle Swenarchuk, director of inter- San Diego instructor who participated in the fueled by the trade agreement itself, have national programs for the Canadian Environ- negotiations to create the two institutions. only worsened the pollution that plagues the mental Law Association. ‘‘It has profound It was only in April 1996, when the bank re- region’s air, water and ground. intimidating effects.’’ ceived a $170 million infusion of grants from The border remains a stark contradiction, The prospect of such a suit had helped to the U.S. Environmental Protection Agency, a place where the world’s most prosperous kill a Canadian proposal that would have re- that its projects began to seem viable. corporations using the most modern manu- quired cigarettes be sold only in plain brown Now, 19 projects representing a planned in- facturing techniques stand beside poor packaging to make them less appealing to vestment of $600 million have been approved, neighborhoods where people live in shacks children, she said. and the first of them, two landfills, are to be made of wooden pallets or cardboard, with- A similar case is pending against Mexico completed in January. Eight are under con- out running water, sewers, electricity or under the same provision, which authorizes struction, and two more, including a sewage telephones. arbitration panels to handle such cases in treatment plant for Ciudad Juarez, are soon In Tijuana, obvious industrial violations private. In it, Metalclad Corp., a Southern to begin. Dozens of others are in preliminary are easy to find. The stench of a bathtub re- California hazardous-waste disposal business, planning stages, beginning the arduous proc- finishing plant burns the eyes and nose of is seeking $990 million in damages for being ess to determine how, and whether, they can anyone within blocks of the building, and in- denied permission to open a landfill in cen- be financed. dustrial fans meant to clear the air for work- tral Mexico. While the bank’s sewage-treatment ers inside stand idle. At the site of the aban- Meanwhile, 20 cases (eight against Canada, projects represent unquestionable improve- doned lead smelting factory Metales y eight against Mexico and four against the ments for border communities, they have Derivados, a subsidiary of San Diego-based United States) have been brought to the faced one criticism. The standards set for New Frontier Trading Corp., which is now Commission for Environmental Cooperation Mexican communities are beneath those con- the subject of a citizens’ complaint against alleging that governments have failed to en- sidered basic in the U.S. Mexico, leaking car batteries lie in huge force their environmental provisions. Eleven One of the few evaluations of the side mounds, and the only pretense of a cleanup are under review, including one that is un- agreement’s environmental agenda suggests is torn plastic sheeting. dergoing the most advanced procedure for re- that it has been modestly successful in car- The New River, which crosses the Mexico- dress available, the preparation of a factual rying out cooperative initiatives among the California border, is essentially a sewer, record. That case stems from allegations countries. The accomplishments include even more so now that the temporary ‘‘fix’’ that the Canadian government has failed to agreements among the countries to phase for it has been to encase it in huge tubing, protect fish and fish habitat in British Co- out some pollutants, and to develop or ex- rather than to clean it. Ciudad Juarez has no lumbia’s rivers from damage by hydro- pand new programs for conservation of spe- facility to treat the sewage from its 1.3 mil- electric dams. cies, including monarch butterflies and mi- lion residents. The notorious environmental problems of John Knox, a University of Texas law pro- gratory songbirds, concluded the Institute Mexico do not stem from its laws. Many are for International Economics, a non-profit, fessor and former negotiator for the State styled after U.S. provisions, and some are Department on the environmental side ac- non-partisan research institution in Wash- more stringent. ington, D.C cord, said, ‘‘I think it’s fairly easy to say it But enforcement is lax or absent. In a re- is better than nothing, but if you compare The Commission for Environmental Co- cent World Bank Group study in Mexico, operation, which has been plagued by polit- what it’s doing to the scope of the problem, more than half of the industries surveyed then it seems pretty minuscule.’’ ical rifts between the U.S. and Mexico, ad- said they did not comply with environmental mits it has yet to resolve the debate over NEW OPPORTUNITIES regulations. whether trade liberalization leads to better When it took hold on New Year’s Day 1994, The Mexican government insists that it or worse environmental conditions. ‘‘While the trade agreement already had deeply di- has made important strides in dealing with there are theoretical arguments on both vided environmentalists. Opponents feared it the environment, principally with more en- sides, there is little empirical data available would make Mexico a pollution haven and vironmental inspections. to settle it,’’ its own assessment concluded. drag down the higher standards of Canada ‘‘Government action . . . has presented im- This fall the commission published a study and the United States. Advocates believed it portant advances in the three years of the purporting to find a drop in pollution across could be Mexico’s best hope, both by pres- present administration,’’ a statement from North America during the trade agreement’s suring it into better environmental stand- the Mexican embassy is Washington, D.C., first year. It failed to take into account one ards and by improving its economy, which in said. substantial portion of the continent, how- turn could lead to higher environmental But its federal government this year has ever—Mexico, which has yet to implement standards. been forced to make deep spending cuts that the necessary pollution reporting system. Pollution intensity is highest in the early include its environmental program because stages of a country’s industrialization, but it of the ongoing drop in the price of oil, upon Mr. HOLLINGS. From that article: wanes as income levels rise. Researchers which Mexico depends for more than one- Environmentalists persuasively argued have found that environmental degradation third of its revenues. that the Mexican government violated its tends to decline once annual per capita in- Slow steps own environmental laws when it assessed the comes reach a threshold of $8,000—roughly The environmental accord created two in- potential impact of the pier, designed to ac- double Mexico’s per capita income. stitutions dedicated to pollution cleanup commodate more and larger cruise ships. One particular dispute settled in July has along the U.S.-Mexico border: the North ‘‘We proved that the Mexican government only exacerbated environmentalists’ fears American Development Bank, created by violated the law,’’ said Gustavo Alanis, that governments would be pressured to re- $450 million contributed in equal parts by president of the Mexican Environmental Law duce their pollution standards. the United States and Mexico to arrange fi- Center, one of the organizations that raised

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.076 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13663 the issue. ‘‘It is an enormous victory for and they kick it after the fact to let it tections by discouraging investment in international environmental rights.’’ know they think it has done wrong. My economic growth. The emphasis, of course, is that there guess is there aren’t too many retailers What is needed, as I said earlier, is a are those in the countries involved willing to get in the way of a hard left cooperative approach, bilaterally be- with labor rights and with the environ- foot. This bill aims at their praises, but tween the United States and the par- ment. They are not purely nomads. what Customs provisions do as a result ticular developing country and among They have an environmental move- is discourage trade and thereby dis- the countries of the regions as a whole. ment in Mexico and in Canada. courage investment. The experience under the NAFTA side We would help to extend environ- In short, this proposal is not what agreement reinforces my point. The mental concerns and labor rights with the author suggested nor is this bill, as sanctions mechanisms have done little this particular agreement if they adopt the title claims: Hope for Africa. In to encourage better labor and environ- these two amendments. fact, this bill is the reverse of what we mental practices. What has worked I ask for the yeas and nays on this want to do in establishing a new part- under the NAFTA agreement is the co- amendment. nership with Africa. operative ventures of the three partici- The PRESIDING OFFICER. Is there a I urge my colleague to oppose this pants on both the labor and the envi- sufficient second? amendment. ronmental front. The NAFTA Commis- There is a sufficient second. I suggest the absence of a quorum. sion on Environmental Cooperation, The yeas and nays were ordered. The PRESIDING OFFICER. The for example, advises all three countries Mr. HOLLINGS. I yield the floor. clerk will call the roll. on how to tackle common environ- The PRESIDING OFFICER. The Sen- The legislative clerk proceeded to mental problems. That advice has ator from Delaware. call the roll. helped ensure coordination rather than Mr. ROTH. Mr. President, I remind Mr. ROTH. Mr. President, I ask unan- conflict among the NAFTA partners my colleague that my bill already in- imous consent that the order for the over environmental issues. cludes significant labor conditions. quorum call be rescinded. The Senate substitute before us does Specifically, the beneficiary countries The PRESIDING OFFICER. Without not preclude these sorts of constructive must be taking steps to afford their objection, it is so ordered. efforts by the President. Indeed, the workers’ internationally recognized Mr. ROTH. Mr. President, I oppose President would do well to pursue a worker rights. If the beneficiary coun- the Hollings amendment No. 2483 and I similar model in the context of our tries fail to protect worker rights, then do so for two reasons. First, as I have broader relations with our African, the benefits under both the CBI and Af- stated previously, the goal of this leg- Caribbean, and Central American rica may be terminated. islation is to encourage investment in neighbors. The model offered by the AMENDMENT NO. 2428 Africa, the Caribbean, and Central pending amendment would not help us I will now address the proposed America. The amendment undermines towards that goal. I, therefore, urge amendment of the Senator from Wis- that effort by requiring the difficult my colleagues to oppose the amend- consin. The legislation he refers to, to negotiation of side agreements on both ment. labor and the environment that delays add some novel transshipment provi- I yield the floor. the incentive that the bill is intended sions, raises serious constitutional The PRESIDING OFFICER. The Sen- to create. This is bad for labor and en- questions in the United States. What ator from Wisconsin. vironmental conditions in the bene- the bill would do is impose joint liabil- Mr. FEINGOLD. Mr. President, what ficiary countries as well as their econo- ity on the importer and the retailer for is the pending business? any material false statement or any mies. The PRESIDING OFFICER. The omission made in filing the numerous The available research suggests labor pending business is the Hollings forms and certifications that have to and environmental standards rise with amendment No. 2483. be filed to enter any textile or apparel a country’s level of economic develop- items into the United States and re- ment. This is because for countries AMENDMENT NO. 2428 ceive the meager benefits available that are on the edge of famine, enforc- Mr. FEINGOLD. Mr. President, this under the bill. ing labor standards and protecting the is a little confusing. We are debating The bill adds Draconian new pen- environment are a luxury. The Finance several amendments at once. I would alties for any alleged transshipment. Committee bill helps economically and like to see if we could get a little back While I am not opposed to adding such in improving labor and environmental and forth going. I wanted to respond to penalties for what is outright customs standards by giving these countries an the chairman’s comments about my fraud subject to all the normal due opportunity to tap private investment amendment, but then he went into sev- process protections ordained by the capital as a means of encouraging eco- eral arguments about the amendment Constitution and contained in current nomic development and economic of the Senator from South Carolina. I U.S. law, this bill allows for the impo- growth. That is a most certain way to am worried it is going to be awfully sition of such penalty on what it terms ensure that these countries have the hard for people to follow this. ‘‘the best information available.’’ wherewithal to pay for environmental Let me return to and respond to the Let me put that in its proper con- protection. concerns of the chairman with regard text. Under this bill, a retailer who has The second reason I will oppose the to the amendment I have offered, to no control over either the exporter’s or amendment is that it essentially de- try to do something about this problem importer’s action could be held jointly pends on economic sanctions to work. of transshipment, this problem that liable for any minor omission made by It threatens to cut off a series of eco- some countries—very likely China— either the exporter or importer and nomic benefits if the countries do not will take advantage of this new Africa held liable not because the retailer was comply with the terms of some agree- Growth and Opportunity Act to ship a found to be guilty of infraction beyond ment yet to be negotiated. That not lot more of their goods through Africa a reasonable doubt but merely on the only undercuts the investment incen- into the United States, and not only basis of the best information available tive by increasing the uncertainty of a harm the African nations and people to the Customs Service. country’s participation in the program, who are trying to benefit from this but That turns the whole notion of a due it also does little to raise labor and en- harm American jobs. process protection guaranteed by the vironmental standards. As we have Every $1 billion of transshipped goods Constitution and by American adminis- heard during the extended debate we into this country apparently costs trative law on its head. I submit this is have had on economic sanctions in the about 40,000 American jobs in the tex- the opposite of constitutional protec- past, they do, actually, little to affect tile-related area. tion. the behavior of the target country. In- When the chairman suggests we are This is an example, in the words of deed, in the case of the intended bene- trying to discourage legal trade by this Jeremy Benton, of what is called dog ficiaries of these tariff preference pro- amendment, that is the opposite of law. The author decided they can’t tell grams, they would have the opposite what we are doing. We are trying to the dog right or wrong ahead of time, effect on labor and environmental pro- prevent this kind of circumvention of

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.049 pfrm01 PsN: S02PT1 S13664 CONGRESSIONAL RECORD — SENATE November 2, 1999 the spirit and intent of the law by un- This is the critical point. Either we are want to get rid of them, then go down fair and what should be illegal trans- going to simply pass this bill, which, to the CBI. shipment. frankly, already is very unbalanced The message is clear. This is what The Senator has suggested somehow and not sufficient to protect American you might call the Job Export Act of there is a constitutional problem with workers, or we are going to try to fix 1999. imposing some penalties on importers it. Surely, one area we need to fix is AMENDMENT NO. 2485 who are given some responsibilities in this transshipment problem. this regard. I was not clear on what the Let me quote, again, these web sites (Purpose: To require the negotiation of a re- constitutional provision was. I assume ciprocal trade agreement lowering tariffs of the People’s Republic of China, Min- on imports of U.S. goods with a country be- it is the notion of taking property istry of Foreign Trade and Economic fore benefits are received under this Act by without due process of law. But if we Cooperation. They say, about the cur- that country) take a look at these penalties, what we rent law which this bill continues: Mr. HOLLINGS. Mr. President, I ask are trying to do is make absolutely There are many opportunities for Chinese unanimous consent to set aside the sure the importer cooperates with the business people in Africa. Setting up assem- pending amendment and call up Customs Service in order to make sure bly plants with Chinese equipment and per- amendment No. 2485, relative to reci- what is happening is not a scam by a sonnel could not only greatly increase sales procity. government, such as the Chinese Gov- in African countries, but also circumvent the ernment, to transship its goods quotas imposed on commodities of Chinese The PRESIDING OFFICER. The through Africa. origin imposed by European and American clerk will report. Let’s look at the actual language the countries. The bill clerk read as follows: Senator has complained about. He re- The opposition to this amendment The Senator from South Carolina [Mr. fers to the use of ‘‘best available infor- simply wants to allow the Chinese Gov- HOLLINGS] proposes an amendment numbered mation.’’ All that is required for an im- ernment to continue this program. 2485: porter is that an importer has to co- They provide no tough penalties, no ob- At the appropriate place, insert the fol- operate. Let me emphasize this for my ligation for people we can do some- lowing: colleagues. It says: thing about, such as importers and peo- SEC. . RECIPROCAL TRADE AGREEMENTS RE- QUIRED. If an importer or retailer fails to cooperate ple under American law. They want to with the Customs Service in an investigation let the good times roll for these Chi- The benefits provided by the amendments to determine if there was a violation of any nese companies and governments that made by this Act shall not be available to provision of this section, the Customs Serv- are trying to undercut American jobs. any country until the President has nego- ice shall base its determination on the best I think that is wrong. Clearly, if tiated, obtained, and implemented an agree- available information. there is anything should be adopted, it ment with the country providing tariff con- cessions for the importation of United The only time this ‘‘best available in- should be some cracking down on the States-made goods that reduce any such im- formation’’ is even utilized is where extremely abusive practice of trans- port tariffs to rates identical to the tariff the importer has not been willing to shipping. Let’s not let these African rates applied by the United States to that cooperate. I think that is entirely rea- countries be pawns for the Chinese goal country. sonable. The Senator refers to these of undercutting American jobs. Mr. HOLLINGS. Mr. President, it is a penalties as draconian, as too severe. Our amendment will strengthen this matter of reciprocity. We have that Let’s remember what this bill does. It bill. It certainly will not weaken the working, as they can tell you, wonder- gives these importers a golden oppor- bill. It will make the bill a much more ful success with Canada and Mexico; tunity, a new opportunity to make a honest attempt to make sure this fos- reciprocity on all the trade items. lot of money through these new trade ters a trade relationship between the I ask unanimous consent to have the opportunities with Africa. I do not United States and the countries of Af- text of tariffs in the Caribbean, Sub- think it is draconian to ask these im- rica—not a conduit for Chinese abuse Sahara Africa, and the tariffs and porters to take reasonable steps to of American quotas. other taxes on computer hardware and avoid the kind of abuse China obvi- I yield the floor. software printed in the RECORD. ously intends to pursue in this area. The PRESIDING OFFICER (Mr. There being no objection, the mate- The penalty for the first offense is a CRAPO). The Senator from Delaware. civil penalty in the amount equal to Mr. ROTH. Mr. President, I ask con- rial was ordered to be printed in the 200 percent of declared value of mer- sent it be in order for me to move to RECORD, as follows: chandise, plus forfeiture of merchan- table the following amendment—— In percent as high as dise. In light of the new opportunities AMENDMENT NO. 2483 Textile Tariffs in the this gives these importers, I do not see Mr. HOLLINGS. Will the distin- Caribbean this as draconian. I see this as a pen- guished Senator withhold? When he Dominican Republic ...... 43 (Includes 8% VAT). alty that is commensurate with the moves to table, that will terminate all El Salvador ...... 37.5 (Includes 12% VAT). Honduras ...... 35 (Includes 10% VAT). kind of opportunities they are pro- debate, as I understand it. Guatemala ...... 40 (Includes 10% VAT). vided. I assume these importers in good I want to offer one more amendment. Costa Rica ...... 39 (Includes 13% VAT). Haiti ...... 29. faith do not want to facilitate Chinese But with respect to the environmental Jamaica ...... 40 (Includes 15% general consumption tax). circumvention of our laws and our amendment, it is clear the distin- Nicaragua ...... 35 (Includes 15% VAT). Trinidad & Tobago ...... 40 (Includes 15% VAT). quotas. I assume their goal is a good- guished chairman of Finance says: faith desire to make a profit by trading Look, this environmental side agree- Textile Tariffs in Africa Southern Africa Customs 74 (Includes 14% VAT for South Africa). with these African countries. So we ment we had in NAFTA would now dis- Union (South Africa, need to do something other than what courage investment. It didn’t discour- Botswana, Lesotho, Na- mibia and Swaziland). is the current law, and all the bill does age investment in Mexico and didn’t Central African Republic ... 30. in its current form is reiterate the cur- discourage investment in Canada. It Cameroon ...... 30. Chad ...... 30. rent law that does not work because it would not discourage investment. What Congo ...... 30. relies on foreign officials to certify we are saying is before you open up as Ethiopia ...... 80. Gabon ...... 30. these products are really African compared to the CBI, you have to have Ghana ...... 25. goods. clean air and clean water and the envi- Kenya ...... 80 (Includes 18% VAT). Mauritius ...... 88. That is not good enough. We need to ronmental protection statements. You Nigeria ...... 55 (Includes 5% VAT). place some responsibility on the im- have to have all of these particular re- Tanzania ...... 40. porter who is subject to American law. quirements. But, by the way, if you Zimbabwe ...... 200. WORLDWIDE TARIFFS AND TAXES ON COMPUTER HARDWARE AND SOFTWARE

Hardware tar- Software tariff Country iff (in percent) (in percent) Other taxes

Africa: Angola ...... (1) 15 1% surcharge. Benin ...... (1) 18 5% customs.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.052 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13665 WORLDWIDE TARIFFS AND TAXES ON COMPUTER HARDWARE AND SOFTWARE—Continued

Hardware tar- Software tariff Country iff (in percent) (in percent) Other taxes

Botswana ...... 0 18 14% VAT. Cameroon ...... 10 10 15% tax on software, 10% on hardware. Congo ...... 15 15 15% tax on software, 10% on hardware. Cote d’Ivoire ...... 5 5 11% VAT on software, 20% on hardware. Ethiopia ...... 0 50 None. Gabon ...... 10 10 5% tax. Ghana ...... 10 25 35% customs tax and 40% entry tax on software, 22.5% on hardware. Kenya ...... 31 50 18% VAT. Lesotho ...... 0 18 14% VAT. Malawi ...... 30 45 20% surcharge. Mauritius ...... 15 18 8% surcharge. Mozambique ...... 7.5 35 30% tax on computer discs. Namibia ...... 0 18 14% VAT. Nigeria ...... 10 25 5% VAT, 7% surcharge. Senegal ...... 20 20 20% VAT. South Africa ...... 0 0 14% VAT. Sudan ...... 0 40 None. Swaziland ...... 0 18 14% VAT. Tanzania ...... 20 30 30% sales tax 5% surtax. Zambia ...... 15 25 20% sales tax. Zimbabwe ...... 15 40 10% surtax. Caribbean Basin: Bahamas ...... 15 35 4% stamp tax. Belize ...... 5 35 15% VAT. Colombia ...... 5 5 16% VAT. Costa Rica ...... 2 7.5 13% VAT. Dominican Republic ...... 10 30 8% sales tax. El Salvador ...... 0 10 13% VAT. Guatemala ...... 0 10 10% VAT. Honduras ...... 1 19 7% VAT. Jamaica ...... 5 5 15% general consumption tax. Nicaragua ...... 0 10 15% VAT. Panama ...... 5 15 5% VAT. 1 Unknown.

Mr. HOLLINGS. Tariffs on textiles, In Senegal, 20 percent with a 20-per- the beneficiary countries to remove the 10-percent tariff, which is ready to cent VAT plus 5-percent stamp tax, for barriers to trade. The existing require- be blended out, in the blending out and a total of 45 percent. ments also impose an affirmative obli- termination of the Multifiber Arrange- In Sudan, 40 percent. gation to avoid discrimination against ment in the next 5 years. Be that as it In Tanzania, 30 percent plus a 30-per- U.S. products in the beneficiary coun- may, we have, in the Dominican Re- cent sales tax plus a 5-percent surtax. try’s trade. What the Finance Com- public a tariff of 43 percent plus 8 per- That is a 65-percent tax. mittee substitute does not require is cent VAT; El Salvador, 37.5 plus; Hon- In Zambia, 25 percent and a 20-per- market access equivalent to that of duras, 35 percent plus; Guatemala, 40 cent sales tax. NAFTA, a standard that even the WTO percent; Costa Rica, 39; Jamaica, 40; In Zimbabwe, a 40-percent tariff plus members among these beneficiary Nicaragua, 35; 40 percent to Trinidad. a 10-percent surcharge, for a total of 50 countries could not currently satisfy. We have a similar group of tariffs with percent. The second reason I oppose the Going down that list, we have traded respect to the tariffs in Africa: the amendment is that the Finance Com- a lot of things, and this does not just Central African Republic, 30 percent; mittee already instructs the President relegate itself to textiles, it relegates Cameroon, 30; Chad, 30; Congo, 30; Ethi- to begin the process of negotiating itself to all trade. opia, 80 percent; Gabon, 30 percent; with the beneficiary country under The distinguished Senator from Wis- Ghana, 25; Kenya, 80 percent; Mauri- both programs for trade agreements consin is pointing out, very appro- tius, 88; Nigeria, 55 percent; Tanzania, that would provide reciprocal market priately, the transshipments. We en- 40; Zimbabwe, 200 percent. access to the United States as well as courage the transshipments without a still more solid foundation with a I plead for reciprocity. I plead for the reciprocity. That is why we put it into long-term economic relationship be- information revolution, which some- NAFTA. It should be part of this. We tween the United States and its Afri- how bypassed me according to this voted on this. It was supported by the can, Caribbean, and Central American morning’s editorial in the Wall Street distinguished chairman of the Finance neighbors. Journal. Committee and the ranking member With respect to tariffs on computer with NAFTA. I do not see why they Under the Africa provisions of the hardware and software, we are trying cannot support it now rather than bill, the President is instructed to as- to make sure they do not do trans- moving to table the amendment. sess the prospects for such agreement shipments, as the distinguished Sen- I yield the floor. and is called on to establish a regional ator from Wisconsin has pointed out, The PRESIDING OFFICER. The Sen- economic forum. That forum could and in turn, include such tariffs as: ator from Delaware. prove instrumental in solving market Ethiopia, 50 percent on computer hard- Mr. ROTH. Mr. President, I oppose access problems that U.S. firms may ware and software; Ghana, 25 percent, this Hollings amendment for three rea- face currently as well as a forum for plus a 35-percent customs tax, plus a sons. any eventual negotiation. 40-percent entry tax on software and a The first reason, as I have stated pre- Under the CBI provisions of the bill, 12.5-percent complementary tax on viously, is that the purpose of this leg- the Finance Committee sought to en- hardware. islation is to encourage investment in courage our Caribbean-Central Amer- ican trading partners to join with us in They are keeping out these advance- Africa, the Caribbean, and Central pressing for the early conclusion and ments due to these high tariffs. This America by offering these poverty- implementation of the free trade agree- will help not just the African coun- stricken countries a measure of pref- ments of the Americas. Each of the tries, but protect the computer infor- erential access to our market. The beneficiary countries of the CBI pro- mation age material. amendment would undermine the ef- fort by making eligibility explicitly de- gram has played an active and con- In Lesoto, 18 percent plus a 14-per- pendent on the offer of reciprocal bene- structive role in those talks today. cent VAT. fits to the United States equivalent to In both Africa and the CBI, we are In Malawi, 45-percent tariff plus a 20- those to which the United States is en- making progress in opening markets percent surcharge. titled under NAFTA. and eliminating barriers to United In Mozambique, 35-percent tariff plus The underlying requirements of the States trade. The fact that we do not a 30-percent tax on computer disks, a 5- African-CBI provisions of the Finance currently enjoy precisely those bene- percent circulation tax. Committee’s substitute do encourage fits offered by Canada and Mexico in

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.071 pfrm01 PsN: S02PT1 S13666 CONGRESSIONAL RECORD — SENATE November 2, 1999 the context of the NAFTA is no bar to Mr. ROTH. I then change my pro- could just amend that unanimous con- action here. posal to 4 o’clock rather than 3:45, with sent request to be that on amendment Finally, the bill does encourage reci- the understanding my colleagues will No. 2359, there be up to 10 minutes on procity where it really counts in the take 10 minutes for their side of the a side—and we will endeavor not to use context of this bill. By encouraging the amendment. that full time—it would be fully agree- use of U.S. fabric and U.S. yarn in the The PRESIDING OFFICER. The Sen- able. assembly of apparel products bound for ator from Wisconsin. Mr. ROTH. That is satisfactory. the United States, the bill establishes a Mr. FEINGOLD. Mr. President, I Mr. FEINGOLD. I would ask for the solid economic partnership between in- have a question for the chairman. He same on the amendment I am pro- dustry and the United States and firms and I talked about my adding another posing with the expectation we will not in the beneficiary country. That pro- amendment prior to these votes as use all the time. vides real benefits to American firms well, amendment No. 2406. I also only The PRESIDING OFFICER. Is there and workers in the textile industry by need 10 minutes. I ask it be included in objection? establishing the platform by which the sequence of votes as well. Without objection, it is so ordered. American textile makers can compete Mr. ROTH. Will the Senator give me Mr. ROTH. But, Mr. President, I ask worldwide. That is precisely the benefit the number of his amendment? unanimous consent the votes start at our industry most seeks in the context Mr. FEINGOLD. This is No. 2406. 4:15, then, instead of 4 o’clock. of our growing economic relationship Mr. ROTH. Mr. President, let me The PRESIDING OFFICER. Without with both regions. renew my request. I ask unanimous objection, it is so ordered. In short, I oppose the amendment consent that it be in order for me to Mr. MOYNIHAN addressed the Chair. and urge my colleagues to do the same. move to table the following amend- The PRESIDING OFFICER. The Sen- Mr. President I ask unanimous con- ments, with one show of seconds. The ator from New York. sent that it be in order for me to move amendments are: Hollings amendment Mr. MOYNIHAN. May I first con- to table the following amendments No. 2379, Feingold amendment No. 2428, gratulate the Chair for having reca- with one show of seconds. The amend- Hollings amendment No. 2483, Hollings pitulated this agreement. ments are: Hollings No. 2379, Feingold amendment No. 2485, Conrad-Grassley The PRESIDING OFFICER. Thank No. 2428, Hollings No. 2483, and Hollings amendment No. 2359, and Feingold you very much. No. 2485. I further ask unanimous con- amendment No. 2406. Mr. MOYNIHAN. Not a small intel- sent that these votes occur in a I further ask consent that these lectual feat, equal to my understanding stacked sequence beginning at 3:45, votes occur in a stacked sequence be- of some of the amendments them- with the time between now and then ginning at 4 o’clock, with the time be- selves. equally divided in the usual form; there tween now and then equally divided in Sir, I am going to make two quick be no other amendments in order prior the usual form, and there be no other comments. One is anecdotal. I was in- to the votes; there be 4 minutes equally amendments in order prior to the volved with the negotiation of the divided just before each vote; and the votes, and there be 4 minutes equally Long-Term Cotton Textile Agreement votes occur in the order in which the divided just before each vote, and the under President Kennedy in 1962. This amendments were called up. votes occur in the order in which the was a major effort. It was done at the The PRESIDING OFFICER. Is there amendments were called up. behest of the Southern mill owners and objection? The PRESIDING OFFICER. Is there operators, the producers of cotton tex- Mr. CONRAD. Mr. President, reserv- objection? tiles, and also of the trade unions that ing the right to object. Mr. ROTH. Each will be a 15-minute represented the garment trades, the The PRESIDING OFFICER. The Sen- vote. Amalgamated Clothing Workers Union ator from North Dakota. The PRESIDING OFFICER. The and the International Ladies Garment Mr. CONRAD. Mr. President, Senator Chair would ask, to clarify the request, Workers Union, now formed with an- GRASSLEY and I had indicated we would that the debate on amendments Nos. other union into UNITE. It was a pre- like a chance to offer our amendment 2359 and 2406 be limited to 10 minutes condition of getting the Trade Expan- at about this time. I inquire if this per amendment. sion Act of 1962, the one major piece of agreement could include an agreement Mr. CONRAD. Mr. President, my un- legislation of President Kennedy’s first to allow Senator GRASSLEY and me derstanding was we were going to get term. time to present our amendment before 10 minutes on our side on our amend- It came and went on to produce what these votes. ment. we know as the Kennedy Round. That Mr. ROTH. All these amendments are Mr. ROTH. Yes; 10 minutes. sequence of long negotiations, most re- going to be disposed of by a tabling mo- Mr. MOYNIHAN. Yes. cently was the Uruguay Round, which tion. Mr. CONRAD. Would the chairman produced the World Trade Organiza- Mr. CONRAD. I understand that. modify his request in that regard? tion. There is another round coming What I am inquiring is whether or not, Mr. MOYNIHAN. I think he did. up, we hope, in the aftermath of the as part of this agreement, the Senator The PRESIDING OFFICER. Let the Seattle meeting. can indicate that Senator GRASSLEY Chair restate its understanding. The Years went by, and I found I was Am- and I will have a chance to offer our Chair’s understanding is, it will be in bassador to India. On an occasion, in amendment. order for the Senator from Delaware to meeting with the Foreign Minister, I Mr. ROTH. Before or after the vote? move to table the amendments which said to him, just curiously: Do you find Mr. CONRAD. Before the vote. We have been listed, with one showing of that the quota which India received in will be happy to take a vote as part of seconds; further, that these votes the American market of cotton textiles that sequence or have it at a later would occur in a stacked sequence be- is onerous? It had now been a decade point, but that we at least have a ginning at 4 p.m.; between now and 4 since it was in place. I asked: Is it a chance, since we are both here, to p.m., however, amendments Nos. 2359, trade restriction that is particularly of present our amendment before these and 2406 will be allowed to be debated concern to you? Because if it was, I was votes are taken. for a maximum of 10 minutes each. The required to report it back to Wash- Mr. ROTH. I will be happy to add the remaining time until 4 p.m. would be ington. Conrad-Grassley amendment to the list divided equally as stated in the unani- The Foreign Minister said: Oh, no. if it is all right with my colleague. mous consent request. That quota guarantees us that much Mr. MOYNIHAN. Yes. May I ask how Is that correct? access to the American market which much time the Senators from Iowa and Mr. CONRAD. That is not correct we would otherwise not have, because North Dakota wish? from our standpoint because our under- American textile manufacturers are Mr. CONRAD. I ask my colleague standing was we were going to get 10 the low-cost producers. We do not hand how much time he wants. May we have minutes on our side. As the Chair has loom cotton textiles in this country or 10 minutes, at most, on our side to talk stated it, it would be 10 minutes total wool for that matter. We have the most about this amendment? debate on our amendment. So if you advanced machinery in the world.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.059 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13667 Not to know that, to depict us as the AMENDMENT NO. 2359 paying. We have an offset that affects potential victims of the Chinese, with (Purpose: To amend the Trade Act of 1974 to the real estate investment trust. It is their child labor, does not show any provide trade adjustment assistance to supported by the real estate industry. understanding of why nations have farmers) They are willing to pay a little some- child labor. They do so because they do Mr. CONRAD. Mr. President, I call up thing more to get what they consider is not have machines. They do not have my amendment, the Conrad-Grassley a fair result. It is the same provision the infrastructure of a modern econ- amendment, amendment No. 2359, that that was in the President’s tax bill. It omy. has been previously filed at the desk. is the same provision that has had sup- The African Growth and Opportunity The PRESIDING OFFICER. The port on other matters before the Sen- Act requires that the President certify clerk will report. ate but not included in any final pack- basically the openness of the trading The legislative clerk read as follows: ages. system, as much as it is going to be The Senator from North Dakota [Mr. This matter is completely and fully open, of the respective countries. The CONRAD], for himself and Mr. GRASSLEY, pro- offset. It simply allows that in a cir- poses an amendment numbered 2359. African Growth Act, for example, re- cumstance where the price of a com- quires that he determine the country Mr. CONRAD. I ask unanimous con- modity has dropped by over 20 percent involved has established or is making sent that reading of the amendment be as certified by the Secretary of Agri- continual progress towards estab- dispensed with. culture and where imports contributed lishing an open trading system for the The PRESIDING OFFICER. Without importantly to this price drop, farmers elimination of barriers to U.S. trade objection, it is so ordered. will then be eligible for trade adjust- and investment and the resolution of (The text of the amendment is print- ment assistance. This is the same standard the De- bilateral trade and investment dis- ed in today’s RECORD under ‘‘Amend- partment of Labor uses to determine putes. ments Submitted.’’) Mr. CONRAD. Mr. President, I ask whether workers are eligible for trade Sir, does anyone wish to name me a my colleagues to give full consider- adjustment assistance when they lose nation in the world that would not be ation to this amendment. I consider their jobs. In order to be eligible, farm- open to American investment today? I this a fairness amendment because this ers would have to demonstrate their would ask my friend, the chairman of amendment, which would extend trade net farm income has declined from the the committee, is he aware of any adjustment assistance to farmers, says previous year, and they would need to country in the world that would refuse we ought to be giving them the protec- meet with the Extension Service to American investment? tion we already give other folks who plan how to adjust the import competi- Mr. ROTH. I would say to the con- work for a living. tion. trary, every country is eager to have Right now we have trade adjustment If all of those conditions are met, American investment. assistance on the books. It is law. If training and employment benefits Mr. MOYNIHAN. They spend their you are working on a job, and you lose available to workers would then be time sending us delegations. your job because of a flood of unfairly available to farmers as an option. Mr. ROTH. Absolutely. traded imports, you have a chance to My colleague, Senator GRASSLEY, is the cosponsor of this amendment and Mr. MOYNIHAN. There may have get back on your feet. But farmers are has played a key role in its develop- been a time—yes, there was, in the era left out. Farmers are excluded because ment. I know he has words he would of a planned economy, in the era of the farmers do not lose their job when they like to say about this measure as well. are faced with a flood of unfairly trad- Soviet Union, in another era. Are we The PRESIDING OFFICER. The Sen- debating another era? ed imports. Instead, they are faced ator from Iowa. We are going to ask the President, with a dramatic drop in income. Mr. GRASSLEY. Mr. President, I rise under one of these amendments—I have Instead, I would like to run through today in support of an amendment I am lost track which one—to negotiate 147 a number of charts that show the con- sponsoring with Senator CONRAD to es- reciprocal trade treaties—147—and ditions facing American farmers today. tablish a new, limited Trade Adjust- then, sir, in one of them—I will not say This shows what has happened to ment Assistance Program for farmers which, because I do not think it would prices over the last 53 years. These are and fishermen. There are two key rea- be quite fair—but in one of them, for wheat and barley prices. These are in sons why this new program is so nec- the third act of imported children’s real terms, inflation adjusted, constant essary, and why Senator CONRAD and I wear, that somehow involves textiles dollars. We have the lowest prices in 53 are offering this legislation. made in the Far East or wherever, the years. One reason is a flood of unfairly The first and most important reason violation is punishable by a fine of $1 traded Canadian imports. is that the existing Trade Adjustment million and 5 years in prison. This is the result. This chart shows Assistance Program simply does not Do we send people to prison for the what the cost of production is. That is work for farmers. When a sudden surge mislabeling of cotton goods? I mean, the green line. The red line shows what in imports of an agricultural com- heavens, a little balance, a little per- prices for wheat have been over the modity dramatically lowers prices for spective. We are talking about mar- last 3 years. that commodity, and sharply reduces Colleagues, wheat prices are far ginal producers on the margin of the the net income for family farmers, below the cost of production and have world economy, trying to give them a these farmers are undeniably hurt by been for over 3 years, again partly be- hand. In the case of the Caribbean import competition. cause of a flood of Canadian imports Basin Initiative, we are trying to do They are just as hurt as steel work- unfairly traded. what President Reagan said was only ers, or auto workers, or textile workers The question is, Are we going to help fair and balanced: If we were going to who experience the same thing. But be- farmers the same way we help other have the North American Free Trade cause farmers lose income, but not workers who are faced with this condi- Agreement, it should not close out their jobs, they do not qualify for the tion? I hope we say yes. I hope we rec- Central America and the Caribbean. existing Trade Adjustment Assistance ognize that it is simple fairness to ex- for workers program. The reduction in I hope we will proceed as long as we tend the same protection to farmers we family farm income from important have to with such amendments, but I extend to other folks who are working competition hurts farmers in a very se- hope some perspective will be in order. for a living in this country. rious way, because it comes at a time The PRESIDING OFFICER. The This amendment is carefully crafted. when farmers desperately need cash as- Chair would note, in order to comply It is limited to $10,000 per farmer per sistance to repay their operating loans with the time agreement previously year with an overall cap cost of $100 and adjust to the import competition. agreed to, the Conrad amendment million that is fully and completely The second reason why I offer this would be called up at this time. paid for. We have an offset. legislation is to correct an inequity Mr. CONRAD addressed the Chair. Interestingly, it is one of those rare that should not continue. The inequity The PRESIDING OFFICER. The Sen- circumstances where our offset is sup- is that it is clear that President Ken- ator from North Dakota. ported by the industry that would be nedy, who designed the original Trade

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.062 pfrm01 PsN: S02PT1 S13668 CONGRESSIONAL RECORD — SENATE November 2, 1999 Adjustment Assistance program as fected by our national trade policy. We Finally, I thank the Chairman and part of the Trade Expansion Act of cannot do justice by ignoring farmers. Ranking Member of the Finance Com- 1962, clearly intended farmers to ben- We must do justice by ignoring farm- mittee, Senator ROTH and Senator efit from the program, just as much as ers. We must reach out to everyone, in- MOYNIHAN, for accepting this amend- other workers hurt as a result of a fed- cluding farmers, just as President Ken- ment today. I urge them to insist on eral policy to reduce barriers to foreign nedy envisioned. Now, I know there are retaining this language at conference trade. In his message to the Congress some in this Chamber who believe that with our House colleagues. on the Trade Expansion Act of 1962, we should wait to make changes in the I have long been an advocate of open- President Kennedy spoke about his Trade Adjustment Assistance program ing markets abroad for U.S. exporters, Trade Adjustment Assistance Program. until we can do a full review of the en- and putting in place rules to facilitate In fact, in his March 12, 1962 message, tire TAA program. trade between the nations. I voted for he referred to farmers at least three I do not agree with that view, for a the NAFTA and the Uruguay Round. I times. very fundamental reason. We are only support the Finance Committee man- Here is part of what President Ken- about four weeks away from the start agers’ amendment to the underlying nedy said. of the WTO Ministerial Conference in bill which will change our focus in Af- I am recommending as an essential part of Seattle. In Seattle, the United States rica from aid to trade, will give the the new trade program that companies, will help launch the ninth series, or Caribbean nations parity in their trade farmers, and workers who suffer damage round, of multilateral trade negotia- with the United States. In addition, I from increased foreign import competition tions since 1947. support reauthorizing two important be assisted in their efforts to adjust to that A key goal of the Seattle Ministerial programs; the Trade Adjustment As- competition. When considerations of na- will be to liberalize world agricultural sistance program and the Generalized tional policy make it desirable to avoid higher tariffs, those injured by that competi- markets even more. This will mean in- System of Preferences program. tion should not be required to bear the brunt creased import competition for Amer- But even as we pursue liberalized of the impact. Rather, the burden of eco- ican agricultural products, not less. trade initiatives, we must work harder nomic adjustment should be borne in part by Farmers have always been among the to help Americans adjust to a changing the Federal Government. strongest supporters of free trade, be- business climate that is often affected What President Kennedy said was so cause so much of what they produce is by events half way around the World. important I want to emphasize what he sold in the international marketplace. For while we can take pride in an his- said: those who are injured by the na- The income our farm families earn in torically low unemployment rate na- tional trade policies of the United these foreign markets sustains our tionwide that occurred partly as a re- States should not bear the brunt of the economy, and contributes greatly to sult of our open and innovative work- impact. And trade adjustment assist- our national well-being. But farm sup- place and trading rules, certain sectors ance should be available for companies, port for free trade cannot, and should and certain parts of the country are farmers, and workers. not, be taken for granted. still facing employment losses or in- Mr. President, this is simply an issue As I said in support of this legisla- come losses as a result of low world- of fairness. Basic American fairness. tion last week, we are in the worst wide commodity prices. Fishermen and The United States has lead the world farm crisis since the depression of the Farmers fall in this category. in liberalizing trade. We started this 1930s. Now, low commodity prices are Let me just use one example. An process of global trade liberalization in not caused exclusively by import com- Alaskan fishing Sockeye Salmon was 1947, when most of the world was reel- petition. But it is certainly a contrib- getting $1.18 per pound in 1996. But last ing from the enormous physical and uting factor to these historically low year, that price had sunk to 85 cents— economic devastation of World War prices. a 28% drop, and a 17% drop over the Two. We saw then that the way to If we lose the support of the farm five-year average. And the drop came avoid this type of catastrophe in the community for free trade, Mr. Presi- in the face of rising imports. Foreign future was to bring nations closer to- dent, I doubt that we will be able to imports of seafood have steadily risen gether through peaceful trade and open win congressional approval for any new since 1992 while exports have steadily markets. That process has been spec- trade concessions that may be nego- fallen over the same period. tacularly successful. Through eight se- tiated in the new round of trade talks. The current TAA program is better ries, or rounds, of multilateral trade So this is all about fairness. It is about suited to traditional manufacturing negotiations, we have scrapped ten of equality. It is about common sense. firms and workers, than to farmers and thousands of tariffs. Many non-tariff For all of these reasons, and because, fishermen. When imports cause layoffs trade barriers have been torn down. as Labor Secretary Goldberg said 37 in manufacturing industries, workers Others have been sharply reduced. The years ago, we must recognize our re- are eligible for TAA. In my own state result of 50 years of trade liberalization sponsibility as a humane government, I of Alaska, TAA has played an impor- has been the creation of enormous strongly urge my colleagues to support tant role both in the oil industry and wealth and prosperity, and millions of this amendment. for the seafood processors. But an inde- new jobs. But not everyone has pros- Mr. MURKOWSKI. Mr. President, I pendent fisherman does not go to the pered. am pleased to support the amendment dock and receive a pink slip, he goes to Some have been injured by this delib- (#2359) proposed by Senators CONRAD the radio and hears the latest price for erate policy of free trade and open mar- and GRASSLEY which would tailor the salmon, and he knows that his family’s kets. And that’s exactly why President Trade Adjustment Assistance program livelihood is threatened. TAA has not Kennedy and the 87th Congress created so that it helps farmers and fisher- been available in his circumstances. the Trade Adjustment Assistance pro- men—two groups that are not ade- As the authors of this amendment gram. To help those injured by our na- quately assisted under the current have explained, the TAA for Farmers tional policy of free trade and open TAA program. and Fishers would set up a new pro- markets adjust to their changing cir- I voted for this amendment at the Fi- gram where individual farmers could cumstances with limited assistance. nance Committee markup, and was dis- apply for assistance if two criteria are President Kennedy’s Secretary of appointed that it failed by a narrow met. Labor, Arthur J. Goldberg put it the margin. But I am pleased that Senators First, the national average price for best. Secretary Goldberg said: CONRAD and GRASSLEY persevered in the commodity for the year dropped As a humane Government, we recognize pushing this important issue forward. I more than 20% compared to the aver- our responsibility to provide adequate assist- also want to thank the authors of this age price in the previous five years. ance to those who may be injured by a delib- amendment for working with my staff Second, imports ‘‘contributed impor- erately chosen trade policy . . . It is because to ensure that the provisions cover tantly’’ to the price reduction. of the desire to do justice to the people who fishermen in Alaska and Louisiana and If these two criteria are met, fisher- are affected. . . other areas along with farmers in the men would be eligible for cash benefits Mr. President, we cannot do justice Midwest because these two groups face based on the fishermen’s loss of in- by helping only some of the people af- similar problems. come. The cash benefits would be

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.084 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13669 capped at $10,000 per fisherman. Re- their support of the amendment. We ‘‘(iv) economic policies to reduce poverty, training and other TAA benefits avail- appreciate it very much. increase the availability of health care and able to workers under TAA also would I think this amendment is a matter educational opportunities, expand physical be available to fishermen interested in of fairness. I deeply appreciate the re- infrastructure, and promote the establish- ment of private enterprise; leaving for some other occupation. sponse today. I hope this will prevail ‘‘(B) does not engage in gross violations of Mr. President, I believe that this through the conference. I have the ut- internationally recognized human rights or change in the TAA program is long most confidence in the chairman’s abil- provide support for acts of international ter- overdue. Again, I want to stress that ity to persuade our colleagues over on rorism and cooperates in international ef- the traditional TAA program still the House side of the merits of this forts to eliminate human rights violations plays an important role, and I do not amendment. and terrorist activities. want to diminish its current role—but ‘‘(C) subject to the authority granted to I again thank the chairman. I thank the President under section 502 (a), (d), and to expand it. The TAA program averts our ranking member, who all along has (e), otherwise satisfies the eligibility criteria the need for more money in unemploy- recognized that this is a logical exten- set forth in section 502; ment compensation, welfare, food sion of trade adjustment assistance we ‘‘(D) has established that the cost or value stamps and other unemployment pro- provide other workers in our economy. of the textile or apparel product produced in grams—in short, it keeps Americans I thank also my cosponsor, Senator the country, or by companies in any 2 or more sub-Saharan African countries, plus employed and able to support them- GRASSLEY from Iowa. He and I have selves and their families. the direct costs of processing operations per- worked together closely not only on formed in the country or such countries, is Let me end, Mr. President, by return- this amendment but many other mat- not less than 60 percent of the appraised ing to a few points on the underlying ters as well. I thank him very much for value of the produce at the time it is entered bill. It is unfortunate, in my view, that his leadership and support. into the customs territory of the United this might be the only piece of trade I thank the Chair. States; and legislation that we move this entire I yield the floor. ‘‘(E) has established that not less than 90 Congress. The PRESIDING OFFICER. The Sen- percent of employees in business enterprises producing the textile and apparel goods are As you might guess, trade with Afri- ator from Wisconsin. ca and the Caribbean Basin countries is citizens of that country, or any 2 or more Mr. FEINGOLD. Mr. President, I ask sub-Saharan African countries. not that important to Alaska. I am unanimous consent that the Senator ‘‘(2) MONITORING AND REVIEW OF CERTAIN deeply disappointed that we are not from Illinois, Mr. DURBIN, be made an COUNTRIES.—The President shall monitor and looking at a WTO agreement with original cosponsor of amendment No. review the progress of each country listed in China. I continue to believe that Presi- 2408 relating to anticorruption efforts. section 4 of the African Growth and Oppor- dent Clinton made a mistake by reject- The PRESIDING OFFICER. Without tunity Act in meeting the requirements de- ing the deal that was put together in scribed in paragraph (1) in order to deter- objection, it is so ordered. mine the current or potential eligibility of April, and might not ever get put back AMENDMENT NO. 2406 each country to be designated as a bene- together in the same manner. I am also (Purpose: To ensure that the trade benefits ficiary sub-Saharan African country for pur- deeply disappointed that we have not accrue to firms and workers in sub-Saha- poses of subsection (a). The President shall considered trade negotiating authority ran Africa) include the reasons for the President’s deter- that would be a strong vote of con- Mr. FEINGOLD. Mr. President, I call minations in the annual report required by fidence as our negotiators head to the up my amendment numbered 2406. section 105 of the African Growth and Oppor- Seattle Round. The PRESIDING OFFICER. The tunity Act. Nevertheless, I commend the Chair- ‘‘(3) CONTINUING COMPLIANCE.—If the Presi- clerk will report. dent determines that a beneficiary sub-Saha- man of the Finance Committee, Sen- The legislative clerk read as follows: ran African country is not making continual ator ROTH, and the Ranking Member, The Senator from Wisconsin (Mr. FEIN- progress in meeting the requirements de- Senator MOYNIHAN, and our Majority GOLD) proposes an amendment numbered scribed in paragraph (1), the President shall Leader for bringing this legislation to 2406. terminate the designation of that country as the floor. Perhaps, if we are able to Mr. FEINGOLD. Mr. President, I ask a beneficiary sub-Saharan African country for purposes of this section, effective on Jan- move forward on this piece of legisla- unanimous consent that reading of the tion, the logjam will be broken. Let’s uary 1 of the year following the year in amendment be dispensed with. which such determination is made. hope. The PRESIDING OFFICER. Without ‘‘(b) PREFERENTIAL TARIFF TREATMENT FOR The PRESIDING OFFICER. The Sen- objection, it is so ordered. CERTAIN ARTICLES.— ator from Delaware. The amendment is as follows: ‘‘(1) IN GENERAL.—The President may pro- Mr. ROTH. Mr. President, in view of vide duty-free treatment for any article de- Strike Sec. 111 and insert the following: the very persuasive arguments of my scribed in section 503(b)(1) (B) through (G) two colleagues, I ask unanimous con- SEC. 111. ELIGIBILITY FOR CERTAIN BENEFITS. (except for textile luggage) that is the (a) IN GENERAL.—Title V of the Trade Act growth, product, or manufacture of a bene- sent, notwithstanding the prior con- of 1974 is amended by inserting after section sent agreement regarding the Conrad- ficiary sub-Saharan African country de- 506 the following new section: scribed in subsection (a), if, after receiving Grassley amendment, that the amend- ‘‘SEC. 506A. DESIGNATION OF SUB-SAHARAN AF- the advice of the International Trade Com- ment be agreed to. RICAN COUNTRIES FOR CERTAIN mission in accordance with section 503(e), The PRESIDING OFFICER. The Sen- BENEFITS. the President determines that such article is ator from New York. ‘‘(a) AUTHORITY TO DESIGNATE.— not import-sensitive in the context of im- Mr. MOYNIHAN. Mr. President, I ‘‘(1) IN GENERAL.—Notwithstanding any ports from beneficiary sub-Saharan African join my chairman in saying this is a other provision of law, the President is au- countries. valuable amendment. Having been in- thorized to designate a country listed in sec- ‘‘(2) RULES OF ORIGIN.—The duty-free treat- tion 4 of the African Growth and Oppor- volved in drafting the legislation in ment provided under paragraph (1) shall tunity Act as a beneficiary sub-Saharan Af- apply to any article described in that para- 1962 which created the Trade Adjust- rican country eligible for the benefits de- graph that meets the requirements of section ment Assistance Act, I think this is an scribed in subsection (b), if the President de- 503(a)(2), except that— important extension of the same prin- termines that the country— ‘‘(A) if the cost or value of materials pro- ciple. ‘‘(A) has established, or is making con- duced in the customs territory of the United It is altogether agreeable to this Sen- tinual progress toward establishing— States is included with respect to that arti- ator. I hope there will be no objection. ‘‘(i) a market-based economy, where pri- cle, an amount not to exceed 15 percent of Mr. GRASSLEY. We thank the Sen- vate property rights are protected and the the appraised value of the article at the time ator very much. principles of an open, rules-based trading it is entered that is attributed to such Mr. MOYNIHAN. Thank me? system are observed; United States cost or value may be applied Mr. GRASSLEY. All of you. ‘‘(ii) a democratic society, where the rule toward determining the percentage referred of law, political freedom, participatory de- The PRESIDING OFFICER. Without to in subparagraph (A) of section 503(a)(2); mocracy, and the right to due process and a and objection, the amendment is agreed to. fair trial are observed; ‘‘(B) the cost or value of the materials in- The amendment (No. 2359) was agreed ‘‘(iii) an open trading system through the cluded with respect to that article that are to. elimination of barriers to United States produced in one or more beneficiary sub-Sa- Mr. CONRAD. Mr. President, I thank trade and investment and the resolution of haran African countries shall be applied in the chairman and ranking member for bilateral trade and investment disputes; and determining such percentage.

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.080 pfrm01 PsN: S02PT1 S13670 CONGRESSIONAL RECORD — SENATE November 2, 1999 ‘‘(c) BENEFICIARY SUB-SAHARAN AFRICAN from third countries seeking to evade fering the nations of sub-Saharan Afri- COUNTRIES, ETC.—For purposes of this title, quotas. As I said before on the other ca the opportunity to lift themselves the terms ‘beneficiary sub-Saharan African amendment, the U.S. Customs Service out of poverty on their own terms, this country’ and ‘beneficiary sub-Saharan Afri- has determined that for every $1 billion bill says Africa will have to do so on can countries’ mean a country or countries listed in section 4 of the African Growth and of illegally transshipped products that our terms or not at all. Opportunity Act that the President has de- enter the United States, 40,000 jobs in Let me explain why. termined is eligible under subsection (a) of the textile and apparel sector are lost. The sponsors of the bill have made this section.’’. So this amendment would also fight two principal arguments on its behalf: ‘‘(c) BENEFICIARY SUB-SAHARAN AFRICAN transshipment but in another way, re- First, that it would expand trade; sec- COUNTRIES, ETC.—For purposes of this title, quiring that 60 percent of the value ond, that it would yield responsible in- the terms ‘beneficiary sub-Saharan African added to a product has to come from vestment in Africa. In fact, the bill country’ and ‘beneficiary sub-Saharan Afri- Africa. It is a significant improvement would have the opposite effect on both can countries’ mean a country or countries listed in section 104 of the African Growth over the 20 percent of the bill. I think counts. The bill would actually impose and Opportunity Act that the President has it is an appropriate improvement over greater restrictions on trade with Afri- determined is eligible under subsection (a) of the 35 percent of the GSP standard. ca than would currently be the case this section.’’. This amendment also emphasizes Af- and would actively discourage any (b) WAIVER OF COMPETITIVE NEED LIMITA- rican opportunities. It requires that form of private investment. TION.—Section 503(c)(2)(D) of the Trade Act any textile firm receiving trade bene- For example, under the current GSP of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to fits must employ a workforce that is program, the rules require that prod- read as follows: 90-percent African. This doesn’t mean ucts from beneficiary countries must ‘‘(D) LEAST-DEVELOPED BENEFICIARY DEVEL- contain 35-percent value added for the OPING COUNTRIES AND BENEFICIARY SUB-SAHA- that all 90 percent of the people have to RAN AFRICAN COUNTRIES.—Subparagraph (A) come from a particular African coun- beneficiary country to qualify; and the shall not apply to any least-developed bene- try where the company might be or the HOPE for Africa bill would raise that ficiary developing country or any bene- activity might be, but they do have to to 60 percent, which would effectively ficiary sub-Saharan African country.’’. be citizens of an African country. end any prospects for firms in African (c) TERMINATION.—Title V of the Trade Act This provision holds out an incentive countries that hope to enter into pro- of 1974 is amended by inserting after section to African governments, businesses, duction-sharing arrangements for the 506A, as added by subsection (a), the fol- and civil society to develop their assembly of products in Africa. lowing new section: human resources. That would not only Current law does not impose any re- ‘‘SEC. 506B. TERMINATION OF BENEFITS FOR SUB-SAHARAN AFRICAN COUNTRIES. be good for Africa; it would be good for quirement that all employees of an en- ‘‘In the case of a country listed in section America, as well as our trading part- terprise be from the beneficiary coun- 104 of the African Growth and Opportunity ners in the region gaining economic try for the company’s product to qual- Act that is a beneficiary developing country, strength. ify. But the HOPE for Africa bill would duty-free treatment provided under this title Without these amendments, this leg- dictate that 90 percent of the employ- shall remain in effect through September 30, islation offers neither growth nor op- ees of any enterprise producing textile 2006.’’. portunity to Africans themselves. In and apparel goods must be citizens of (d) CLERICAL AMENDMENTS.—The table of contents for title V of the Trade Act of 1974 fact, unless the Senate makes these beneficiary countries. In other words, is amended by inserting after the item relat- changes, we will simply see a continu- no legal residents or immigrants would ing to section 505 the following new items: ation of a disturbing trend. be employed in these plants above a ‘‘506A. Designation of sub-Saharan African In the first 4 years of this decade, certain set limit. countries for certain benefits. corporate profits in Africa average 24 How, I wonder, would the U.S. Cus- ‘‘506B. Termination of benefits for sub-Saha- to 30 percent compared with 16 to 18 toms Service enforce these provisions? ran African countries.’’. percent for all developing countries. Would U.S. Customs have to inves- (e) EFFECTIVE DATE.—The amendments But real wages in Africa continue to tigate and certify every plant in ad- made by this section take effect on October fall, as they have for nearly three dec- vance? Would Customs have to require 1, 2000. ades now. The number of African fami- reports on all new hires by the indi- Mr. FEINGOLD. Mr. President, as the lies unable to meet their basic needs vidual enterprise? Or would Customs Senate considers the African Growth has doubled. It would be irresponsible have to be involved in the individual and Opportunity Act, we have to keep to pass an African trade bill that rein- firm’s hiring decisions from the start asking ourselves the key question: forced this dangerous disconnect be- in order to be sure the firm was pre- Growth and opportunity for whom? tween corporate profits and African cisely at 90-percent employment from It is an important question because wages. beneficiary countries? the Africa trade legislation we are now I know my colleagues who support In short, the amendment does ex- considering does not require that Afri- the African Growth and Opportunity actly the opposite of what it purports cans themselves be employed at the Act do so because they genuinely want to do. I therefore urge my colleagues to firms that are going to receive the to engage with the continent. I share vote against this amendment. trade benefits. In fact, AGOA, as it now their goal, and I believe this amend- The PRESIDING OFFICER. The Sen- stands, actually takes a step back- ment would push U.S. Africa policy in ator from Wisconsin is recognized. wards for Africa. The GSP program re- that direction by linking economic Mr. FEINGOLD. Mr. President, in re- quires that 35 percent of a product’s growth and human development pro- sponse to the chairman’s remarks, I be- value added come from Africa, but this tecting both African and American in- lieve those provisions would be en- legislation actually lowers the bar to terests. forceable. We already have a mecha- 20 percent. I ask my colleagues to support this nism where an import’s country of ori- Under this scheme, it is possible that amendment. gin must be verified. The consent must a product would meet the 20-percent re- I yield the floor. also be verified. I suggest we use the quirement and qualify for AGOA bene- The PRESIDING OFFICER. The Sen- same mechanisms in place to certify fits. For example, if non-African work- ator from Delaware. African value content. In fact, it was ers physically standing in West Africa Mr. ROTH. Mr. President, I rise in indicated under GSP that it is a 35-per- simply sewed a ‘‘Made in Togo’’ label opposition to Senator FEINGOLD’s cent requirement and under this bill is on apparel and then shipped it to the amendment which incorporates provi- a 20-percent requirement. United States, that is all they would sions of S. 1636, the HOPE for Africa The question doesn’t seem to be have to do. It makes something of a Act. whether we can enforce it or identify mockery of how this is supposed to Frankly, this legislation would be it; the question seems to be, What help African countries and African better described as the ‘‘No Growth and should the percentage be? workers. No Opportunity Act.’’ Even a cursory In response to the broader point that This plan undercuts the potential for reading of the provisions reflect an in- somehow this is going to be unfair to trade to boost African employment and tent to throttle any form of productive the countries of Africa, it is just the encourages transshipment of goods investment in Africa. Rather than of- opposite. What we are trying to avoid

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.067 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13671 with this amendment is, in effect, the that that is the only requirement, so We do allow for migration in Africa. exploitation of African countries as a anyone who is a citizen of any one of We allow for Africa seeking out oppor- way for other countries to get away the African countries, regardless of tunities where they find them. We are with something they can do right now their background, would be within the trying to make sure this is some nexus very easily; for example, the Chinese 90 percent. between this legislation and the oppor- willingness here to use transshipment Mr. MOYNIHAN. I am aware of that, tunities for Africans to benefit, as well through African companies to undercut and I recognize that is a very reason- as large corporations that may benefit. American jobs. All we are trying to do able thought. But I do know, from This is an attempt to make the bill is have a reasonable assurance, in two some experience in that part of the better. I think it is one that is not too ways, that Africans are actually hav- world, that citizenship is not a stand- difficult to achieve. ing a chance to do the work and they ard statutory entitlement of the indi- I yield the floor. are actually contributing to the prod- vidual, as it would be—well, even in Mr. MOYNIHAN. I suggest the ab- uct. our country, if you come here, you sence of a quorum. A 60-percent requirement is not 100 have to go through a great deal to be- The PRESIDING OFFICER (Mr. GOR- percent, it is a reasonable level. It still come a citizen. If you are born here, TON). The clerk will call the roll. leaves room for joint activities with you already are. That can be a very The legislative assistant proceeded other entities. And a 90-percent re- ambiguous situation, sir. I don’t know. to call the roll. Mr. HOLLINGS. I ask unanimous quirement is not restricted, as the May I ask my friend, are Mauritians consent that the order for the quorum chairman has suggested, to one coun- Africans or Indians? One of the big call be rescinded. try, but 90 percent have to be African issues, I can say to the Presiding Offi- The PRESIDING OFFICER. Without citizens of any one of the over 50 Afri- cer, is that in Mauritius a considerable objection, it is so ordered. can countries. It still leaves a 10-per- textile trade has developed with Mr. HOLLINGS. Mr. President, let cent possibility for workers from other Mauritian sponsors and Chinese mi- me join in with the distinguished Sen- countries. If we don’t do this, this pro- grant workers. Are Mauritians Afri- ator from Wisconsin. posal has nothing to do with making cans? One of the areas I am trying to find sure African workers get an oppor- Mr. FEINGOLD. If you are suggesting with respect to the amount of work or tunity to have a decent living and to they are citizens of Mauritius, for the the amount of production or percent of have these economic opportunities. purposes of this bill, they would cer- production of an article, it was found This bill has to be a two-way street at tainly qualify as people who could be by merely placing the label on the arti- some level, Mr. President; it is not that counted within the 90 percent. cle because one had to unload, load now. This amendment is a good-faith Mr. MOYNIHAN. If you are on the In- back, and assimilate in a particular effort to make it more balanced and to dian Ocean, how sure are you that you way in order to get the label. The mere be fairer to African workers. I strongly are in Africa? labeling was considered to be 20 per- suggest it is a modest step that needs Mr. FEINGOLD. It is the definition cent. That would have complied with to be taken to improve this bill. of African countries as set forth in the parts of this particular CBI/Sub-Sahara I yield the floor. bill. I believe that would be in the list bill. The PRESIDING OFFICER. The Sen- of countries. The requirement of the Senator from ator from New York is recognized. Mr. MOYNIHAN. I get to the point, Wisconsin at 60 percent makes sure we Mr. MOYNIHAN. Mr. President, I and I don’t make it in any hostile man- can’t get this specious argument about don’t wish to suggest there is anything ner. I just say the complexities of the the percentage and the extra work of but good intentions behind all these world, just that part of it, are very loading and unloading and putting it measures. But to introduce the idea considerable. I am reluctant to see through a different set of machinery, of—is it citizenship we are talking such categories enter trade law. No one tools, adding a label. That constitutes about, ancestry, or what? What is an has ever asked whether the products of 20 percent. I understand the intent is to African, sir? South Africa would be the American clothing workshops in get investment and jobs with respect to part of the arrangements in this Afri- New York City were made by American the Caribbean Basin and with respect can Growth Act. citizens. There surely would have been to the sub-Sahara countries. There is Suppose there was a plant in Johan- a time when the majority—or many of no question it is well considered. It nesburg that was owned by the de- them—were not American citizens at ought to be at least 60 percent, as scendants of Dutch settlers who ar- all. They would have come from what called for by Senator FEINGOLD’s rived in the 17th century; some of the would become Poland, and there was no amendment. managers were Indian persons who had concept of citizenship for the occu- With respect to my colleague, the emigrated in the 19th century under pants of the shtetls. I just suggest distinguished senior Senator from New the British Empire—under the British there is considerable ambiguity. I don’t York, dramatically asking the ques- Empire, people moved all over the wish to press the matter. tion, Can anybody name a country world. We recently had the great honor I yield the floor. where they don’t want American in- of meeting, just off the Senate Cham- Mr. FEINGOLD. Mr. President, in re- vestment? That is very easily done. Go ber, with heads of state from the Carib- sponse to that, I recognize the argu- to Japan. They started this. Companies bean area, and the President of Trini- ment regarding American history. still can’t get investment there unless dad and Tobago is of Indian ancestry. Surely there is a different scenario the investment doesn’t pay off as an in- That is very normal. Indians moved to when we talk about African countries. vestment. Companies have to have a li- California, having gone to the British The problem I am trying to address— cense technology, make sure the jobs Empire and gone to Canada and were and I appreciate the Senator’s point—is are there, make sure the profits stay coming down. And suppose there were that we are fearful, with good reason, there. Zulu workers there—African, obvi- that African countries will be used as a We have been trying to invade the ously, but they are more recent arriv- conduit to allow the kind of activity Japanese market for 50 years without als than most. the Chinese entities obviously intend success. They have their Ministry of Mr. FEINGOLD. Will the Senator to pursue, which is to essentially run Finance. They have their Ministry of yield for a question? these products through an African Industry and Trade (MITI). There is no Mr. MOYNIHAN. I am happy to. country, stamp the label on it, not question, companies can’t get in there. Mr. FEINGOLD. I wish to ask a ques- really let Africans play a significant Go to China. Ask Boeing how they tion. Our bill only provides that 90 per- role in producing the product, and un- got in China. Read the book ‘‘One cent of the people who work in the firm dercut our quota laws. That is the rea- World Ready or Not.’’ It was pointed have to be citizens of an African coun- son for doing this. I don’t think it is out, 40 percent of the Boeing 777 parts try. It does not suggest in any way particularly difficult to administer or are not made up in Seattle or anywhere anything about their ethnic or racial to do when we suggest we are talking in the United States; they are made by background. I am very sensitive to here about citizenship of an African investments in China. How do those in- that. I wonder if the Senator is aware country without any other criteria. vestments happen? They said yes, you

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.069 pfrm01 PsN: S02PT1 S13672 CONGRESSIONAL RECORD — SENATE November 2, 1999 can invest here if you license the tech- The PRESIDING OFFICER. The reason, I urge this amendment be ta- nology, if you produce the parts and clerk will call the roll. bled. create the jobs here and keep your The legislative assistant proceeded The PRESIDING OFFICER. The Sen- profits here. That is fine business. to call the roll. ator from New York. To the rhetorical question, Does any- Mr. ROTH. Mr. President, I ask unan- Mr. MOYNIHAN. Mr. President, I one know of a country that doesn’t imous consent that the order for the join the chairman in urging this mat- want the American dollar? That is quorum call be rescinded. ter be tabled. We have a fine under- what they are talking about. I can tell The PRESIDING OFFICER. Without lying bill and we hope to take it to Members, as we look at the stock mar- objection, it is so ordered. conference with as little encumbrance ket, they are going from the American There are 4 minutes equally divided as can be, certainly none to which dollar to the Japanese yen or to the before the vote. there would be instant objection on the Deutsche mark. We will be devaluing AMENDMENT NO. 2379 House side. that dollar shortly at the rate of $300 Mr. HOLLINGS. Mr. President, the I yield the floor. billion trade deficit and $127 billion fis- Senator from Delaware said this Mr. ROTH. Mr. President, under the cal deficit. We did not run a surplus at amendment would discourage invest- provisions of the previous consent, I now move to table the amendment. the end of September; we ran a deficit ments. The very same amendment was Mr. President, I ask for the yeas and of $127 billion. That is according to the included at his behest in the Finance Treasury’s own figures we submitted. nays. Committee on NAFTA. It has not dis- The PRESIDING OFFICER. Is there a Yes, I can answer that question read- couraged investment whatever in Mex- ily. These countries don’t want invest- sufficient second? ico. On the contrary, the Koreans, the There is a sufficient second. ment unless you can get what I am try- Chinese, Taiwanese, the Americans, ev- The yeas and nays were ordered. ing to get. I am trying to get the jobs. eryone is investing like gangbusters The PRESIDING OFFICER. The I am trying to get the investment. down in Mexico. question is on agreeing to the motion Don’t tell a southern Governor how That is what they talk about, the to table amendment No. 2379. to carpetbag. We have been doing that success of NAFTA. So this is worded to The yeas and nays have been ordered. for years on end. I know it intimately. include the language exactly as they The clerk will call the roll. I have traveled all over this country have included it in the NAFTA agree- The legislative assistant called the trying to solicit and bring industry to ment. Could it be on labor rights that roll. South Carolina. I was the first Gov- this body wants to put a stamp of ap- Mr. NICKLES. I announce that the ernor in the history of this country to proval on a situation such as the exam- Senator from Arizona (Mr. MCCAIN) go to Latin America, and later took a ple I gave of a 13-year-old young girl and the Senator from New Hampshire gubernatorial mission after the elec- working 100 hours at 13 cents an hour (Mr. GREGG) are necessarily absent. tion in 1960 with some 27 State Gov- until 3 in the morning? Do we want The result was announced, yeas 54, ernors, trying to get investment into that kind of thing going on? nays 43, as follows: South Carolina. I traveled to Europe. I I am sure we do not want to put the [Rollcall Vote No. 345 Leg.] called on Michelin in June of 1960. Now stamp of approval on the threats they YEAS—54 we have beautiful plants and the North will be killed when they ask for certain Abraham Fitzgerald Lugar American headquarters of Michelin. We labor considerations down in Honduras. Allard Frist Mack Ashcroft can go down the list. I went through all of those particular Gorton McConnell We know how to do it, and the others Baucus Graham Moynihan examples. are doing it to us. We understand that. Bennett Gramm Murkowski We do not want to invest in scab Bond Grams Nickles However, there is a degree of takeover, labor. What we want to invest in is an Breaux Grassley Roberts so to speak, or export of these jobs. We Brownback Hagel Roth opportunity and an improved lot with cannot afford it, particularly in the Bunning Hatch Santorum the Caribbean Basin Initiative here. So Burns Hutchinson Sessions textile area. It will happen in all the it is, the amendment should not be ta- Cochran Hutchison Smith (NH) other hard industries, as has been char- bled. It is in force, working with re- Coverdell Inhofe Smith (OR) acterized by Fingleton, if this con- Craig Jeffords Specter tinues. spect to NAFTA. There is no reason Crapo Kerrey Stevens Rather than talk about the agri- why it cannot work in this particular DeWine Kyl Thomas place. Dodd Landrieu Thompson culture getting a special trade rep- Domenici Lieberman Voinovich resentative—agriculture is never left The PRESIDING OFFICER. The Sen- Enzi Lott Warner ator from Delaware. out. The Secretary of Agriculture is al- NAYS—43 ways there, the special trade represent- Mr. ROTH. Mr. President, I rise to urge my colleagues to table the amend- Akaka Feingold Murray ative, the export-import financing is Bayh Feinstein Reed there; everything is there for agri- ment. I do so for two reasons. First, as Biden Harkin Reid culture. I don’t mind them putting this I have stated previously, the goal of Bingaman Helms Robb Boxer Hollings Rockefeller amendment on there, but it points up, this legislation is to encourage invest- ment in Africa, the Caribbean, and Bryan Inouye Sarbanes if Members get politically the right Byrd Johnson Schumer support, they can get their amendment Central America. This amendment Campbell Kennedy Shelby accepted around here even though it is would undermine that effort by requir- Cleland Kerry Snowe ing the difficult negotiations of side Collins Kohl Thurmond not germane and it is not relevant. Conrad Lautenberg Torricelli However, if one gets a good amend- agreements that would delay the incen- Daschle Leahy Wellstone ment as required, as both the chairman tive the bill would create. That, I Dorgan Levin Wyden argue, is of no help to these developing Durbin Lincoln of the Finance Committee and the Edwards Mikulski ranking member required in the countries and will not lead to any NAFTA bill, it was included in the great improvement in their labor NOT VOTING—2 NAFTA bill. Fortunately, the ranking standards. Gregg McCain member did vote with us. The chair- The second reason I oppose the The motion was agreed to. man of the Finance Committee went amendment is that it essentially de- Mr. ROCKEFELLER addressed the along and supported the side agree- pends on economic sanctions to work. Chair. ments with respect to labor, the side Its threat is that the economic benefits The PRESIDING OFFICER. The Sen- agreement with respect to the environ- of the beneficiary countries will be cut ator from West Virginia. ment, and the reciprocity from both off if the countries do not comply with CHANGE OF VOTE Canada and Mexico. the terms of some agreement yet to be Mr. ROCKEFELLER. Mr. President, The PRESIDING OFFICER. The Sen- negotiated. That not only undercuts on Hollings amendment No. 2379, the ator from South Carolina has used his the investment incentive by increasing junior Senator from West Virginia hour under cloture. the uncertainty of a country’s partici- voted ‘‘aye’’ and wishes to change his Mr. ROTH. I suggest the absence of a pation in the program, but it also does vote to ‘‘nay.’’ I ask unanimous con- quorum. little to raise labor standards. For that sent to be able to change my vote. My

VerDate 29-OCT-99 04:24 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.072 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13673 change of vote would have no effect on series be limited to 10 minutes in Feinstein Kerrey Roberts Fitzgerald Kyl Roth the outcome of the vote. length. Frist Lieberman Santorum The PRESIDING OFFICER. Is there The PRESIDING OFFICER. Is there Gorton Lincoln Shelby objection? objection? Graham Lott Smith (OR) Without objection, it is so ordered. Without objection, it is so ordered. Gramm Lugar Stevens (The foregoing tally has been Grams Mack Thomas The Senator from New York. Grassley McConnell Thompson changed to reflect the above order.) Mr. MOYNIHAN. Mr. President, I Hagel Moynihan Voinovich Mr. ROTH. I move to reconsider the would like to associate myself with the Hatch Murkowski Warner Hutchinson Murray Wyden vote. chairman and note that this measure, Mr. MOYNIHAN. I move to lay that Jeffords Nickles among other things, provides for up to motion on the table. NAYS—44 The motion to lay on the table was 5 years imprisonment for a third dis- pute. We don’t want to criminalize Akaka Feingold Mikulski agreed to. Biden Harkin Reed international trade. Bingaman Helms Reid AMENDMENT NO. 2428 Mr. ROTH. Mr. President, let me add Boxer Hollings Robb Mr. MOYNIHAN. Mr. President, I be- that the Senator from Wisconsin has Bryan Hutchison Rockefeller lieve a vote is scheduled. Bunning Inhofe Sarbanes The PRESIDING OFFICER (Mr. done nothing to address my concerns Byrd Inouye Schumer regarding the constitutional infirmity Campbell Johnson Sessions HAGEL). The Senator is correct. of his amendment. As I have already Cleland Kennedy Smith (NH) There are 4 minutes evenly divided Conrad Kerry Snowe for debate prior to the vote. stated, my colleague’s amendment Collins Kohl Specter Who yields time? would expose individuals to criminal Dodd Landrieu Thurmond Mr. FEINGOLD addressed the Chair. and civil penalties without the due Dorgan Lautenberg Torricelli process required by the U.S. Constitu- Durbin Leahy Wellstone The PRESIDING OFFICER. The Sen- Edwards Levin ator from Wisconsin. tion. That is simply unconscionable. Mr. FEINGOLD. Mr. President, this I therefore urge my colleagues to NOT VOTING—2 amendment simply intends to try to vote to table the amendment. Gregg McCain make sure that the African portion of Mr. FEINGOLD. Mr. President, I wish The motion was agreed to. this legislation does not become a to respond to both the chairman and Mr. ROTH. Mr. President, I move to mechanism whereby governments or the ranking member. reconsider the vote. businesses from China, for example, They have suggested, it seems to me, Mr. MOYNIHAN. I move to lay that ship their goods through Africa as a that somehow this provision automati- motion on the table. way to evade American quotas. cally involves imprisonment. That is The motion to lay on the table was This is another process called trans- simply not correct. Under the first of- agreed to. shipment. During the debate, I pointed fense, there is only a civil penalty in- AMENDMENT NO. 2483 out that on a web site of the Chinese volved for the importer in the amount The PRESIDING OFFICER (Mr. Government, they essentially say this equal to 200 percent of the declared SMITH of Oregon). Under the previous is exactly what they are going to do. It value of the merchandise. A second of- order, there are 4 minutes of debate is what they are already doing. fense then would involve perhaps up to equally divided for the motion to table We have put some responsibility on 1 year of imprisonment. It is only in a amendment No. 2483. The Senate will importers. American importers will third offense that it would be 5 years. be in order. Who yields time? The Sen- have the benefit of this bill to make It is simply not correct to suggest ator from South Carolina. sure they vouch for the legitimate con- that if somebody makes a mistake Mr. HOLLINGS. Mr. President, this amendment is nothing more than the tent of this product having some char- once, suddenly they are going to be im- previous amendment on side agree- acteristic of being actually from Afri- prisoned. It is not nearly as harsh as ments on labor. This one would require ca. It is a very important provision to that. It is a reasonable series of pen- the side agreements with respect to the make sure this bill has some balance alties for people who are going to get environment. The distinguished Pre- and it doesn’t threaten American jobs. enormous benefit under this legisla- siding Officer knows I know the feeling The figures I quoted indicate that for tion. of strength out on the west coast for every $1 billion in illegally trans- Mr. MOYNIHAN. Mr. President, the the environment. I have traveled up shipped goods, it costs about 40,000 Senator is correct. I believe I said the there, for example, in Puget Sound and American jobs in the textile and re- provision provided ‘‘up to’’ on the third have had the hearings with Dixie Lee lated areas. event. But we will not dispute it. The Ray when she was the oceanographer, This is a very straightforward facts are accurately stated by the Sen- John Linberg, and all the rest. I come amendment that opposes the practice ator from Wisconsin. back to the statement by my distin- of transshipment I think every Member The PRESIDING OFFICER. Is all guished ranking member quoted in the of this body would like to support. time yielded? Wall Street Journal this morning—— I yield the floor. Mr. ROTH. I yield the remainder of The PRESIDING OFFICER. The Sen- Mr. MOYNIHAN. Mr. President, we my time. ator from Delaware. do not have order. We cannot hear the The PRESIDING OFFICER. The Mr. ROTH. Mr. President, I rise in Senator from South Carolina. question is on the motion to table opposition to the amendment and ask The PRESIDING OFFICER. The Sen- amendment No. 2428. On this question, that it be tabled. ators will take their conversations to First, the Finance Committee bill al- the yeas and nays have been ordered, the Cloakroom. ready contains the specifically en- and the clerk will call the roll. The Senator from South Carolina. hanced transshipment provisions be- The assistant legislative clerk called Mr. HOLLINGS. As quoted in the yond those contained in the House bill. the roll. morning Wall Street Journal, the dis- The Finance Committee bill would sus- Mr. NICKLES. I announce that the tinguished Senator MOYNIHAN of New pend exporters and importers from the Senator from Arizona (Mr. MCCAIN) York said: benefits of the program for 2 years if and the Senator from New Hampshire We were planning to spend a few days in found to have transshipped in violation (Mr. GREGG) are necessarily absent. Seattle, just meeting people. of the rule. The result was announced—yeas 53, But if you could not get this bill Second, the Customs Service already nays 44, as follows: passed, they would not have any credi- has extensive power to combat trans- [Rollcall Vote No. 346 Leg.] bility. shipment. Let me be clear what trans- YEAS—53 I don’t want to show my face. shipment is. It is Customs law. Cus- Abraham Bond Craig I know in general the Democrats are toms already has the enforcement Allard Breaux Crapo considered prolabor and the Repub- power to address these concerns. Ashcroft Brownback Daschle licans are considered generally as Baucus Burns DeWine Mr. President, I ask unanimous con- Bayh Cochran Domenici antilabor. But with respect to the envi- sent that the remaining votes in this Bennett Coverdell Enzi ronment it has been bipartisan. There

VerDate 29-OCT-99 03:25 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.074 pfrm01 PsN: S02PT1 S13674 CONGRESSIONAL RECORD — SENATE November 2, 1999 was no stronger protector of the envi- [Rollcall Vote No. 347 Leg.] over the last 7 years from $71 billion to ronment than our late friend, John YEAS—57 $831 billion. Chafee of Rhode Island. He led the way Abraham Fitzgerald Lugar We are going out of business. It for Republicans and Democrats. I Allard Frist Mack would be a wonderful thing. But let’s would not want to show my face in Se- Ashcroft Gorton McConnell have some reciprocity. All we are say- Baucus Graham Moynihan attle, having voted that you could not Bennett Gramm Murkowski ing is, when we make an agreement, we even sit down, talk, and negotiate Bond Grams Nickles take some of these particular regula- something on the environment, the Breaux Grassley Roberts tions affecting, for example, textiles— Brownback Hagel Roth there is a whole book of them here— very same provisions that the chair- Bunning Hatch Santorum man of the Finance Committee re- Burns Hutchinson Sessions and if we lower ours, let them lower quired in the NAFTA agreement. It is Campbell Hutchison Shelby theirs. in the NAFTA agreement. I am only Cochran Inhofe Smith (NH) Cordell Hull, 65 years ago, with the Coverdell Jeffords Smith (OR) reciprocal trade agreements of 1934, is saying, since we are going to extend Craig Kerrey Specter NAFTA to the CBI, let’s put the same Crapo Kyl Stevens what got the country going again in- requirements there with consideration DeWine Landrieu Thomas dustrially, and that is what will get it for the environment. Dodd Lieberman Thompson going again if we obey the reciprocity Domenici Lincoln Voinovich that we included in NAFTA. The PRESIDING OFFICER. The Sen- Enzi Lott Warner All I am trying to do, if we are going ator from New York. NAYS—40 to extend NAFTA, let’s have the same Mr. MOYNIHAN. Mr. President, may Akaka Feingold Murray reciprocity we had in NAFTA in these I say that will teach me to ask for Bayh Feinstein Reed particular CBI agreements. Biden Harkin Reid The PRESIDING OFFICER. The Sen- order when the Senator from South Bingaman Helms Robb Carolina is speaking. Boxer Hollings Rockefeller ator from Delaware is recognized. Mr. ROTH. Mr. President, I oppose But we are required, as managers, to Bryan Inouye Sarbanes Byrd Johnson Schumer the amendment. I do so for three rea- make the same point on this measure, Cleland Kennedy Snowe sons. The first reason, as I have stated this amendment, that we made on the Collins Kerry Thurmond previously, is that the purpose of this earlier Hollings amendment. This Conrad Kohl Torricelli Daschle Lautenberg Wellstone legislation is to encourage investment would require us to negotiate 147 envi- Dorgan Leahy Wyden in Africa, the Caribbean, and Central ronmental agreements around the Durbin Levin America by offering these poverty- world before any of the provisions of Edwards Mikulski stricken countries a measure of pref- the African bill or the Caribbean Basin NOT VOTING—2 erential access to our markets. Initiative or the tariff preferences Gregg McCain This amendment would undermine under the Generalized System of Pref- The motion was agreed to. that effort by making eligibility ex- erences can be extended. Mr. ROTH. I move to reconsider the plicitly dependent on the offer of recip- NAFTA was a relatively simple vote. rocal benefits to the United States three-party negotiation. We have very Mr. MOYNIHAN. I move to lay that equivalent to those that the U.S. is en- few differences with Canada, and such motion on the table. titled under NAFTA. This is a standard as we had with Mexico were worked The motion to lay on the table was even the WTO members among the ben- out. In so many of the countries we are agreed to. eficiary countries could not currently talking about in sub-Saharan Africa, CHANGE OF VOTE satisfy. The second reason I oppose the the nation, the area, is an environ- Mr. LAUTENBERG. I ask unanimous amendment is that the Finance Com- mental disaster. That is why we are consent that on a vote I cast on amend- mittee bill already instructs the Presi- trying to develop some trade, some ment No. 2483 which I indicated in the dent to begin the process of negoti- economic influx—trade not aid. We affirmative to table, I be permitted to ating with the beneficiary countries would not do it. What would be your change that vote without affecting the under both programs for trade agree- standard for the Sudan? What would be outcome. ments that would provide reciprocal your standard for parts of the Congo? The PRESIDING OFFICER. Without market access to the United States, as What would you know about the coun- objection, it is so ordered. well as a still more solid foundation for try with which you are negotiating? (The foregoing tally has been the long-term economic relationship These are terribly distressed regions. changed to reflect the above order.) between the United States and its Afri- We have had three decades of declining AMENDMENT NO. 2485 can, Caribbean, and Central American income, of rising chaos. The best hopes The PRESIDING OFFICER. There is neighbors. are the countries that want this agree- now 4 minutes of debate equally di- Finally, let me point out that the bill ment. We are not going to leave envi- vided on amendment No. 2485. does encourage reciprocity where it ronment behind, but we should move Who yields time? really counts in the context of this bill. ahead on this measure. I think my Mr. HOLLINGS addressed the Chair. By encouraging the use of U.S. fabric chairman agrees with me in this mat- The PRESIDING OFFICER. The Sen- and U.S. yarn in the assembly of ap- ter. I yield the floor. ator from South Carolina. parel products bound for the United The PRESIDING OFFICER. The time Mr. HOLLINGS. Mr. President, by States, the bill establishes a solid eco- has expired. this vote we will determine whether we nomic partnership between industry in Mr. MOYNIHAN. I move to table the are for foreign aid or foreign trade. The the United States and firms in the ben- amendment. truth is that the Marshall Plan in for- eficiary countries. That provides real eign aid is really a wonderful thing. We benefits to American firms and work- The PRESIDING OFFICER. The have defeated communism with cap- ers in the textile industry by estab- question is on agreeing to the motion italism. It has worked. lishing a platform from which Amer- to table amendment No. 2483. But now after 50 years, with running ican textile makers can compete world- The yeas and nays have previously deficits in excess of $100 billion for wide. That is precisely the benefit our been ordered. some 20 years, we are just infusing industry most seeks in the context of The clerk will call the roll. more money into the economy than we our growing economic relationship are willing to take in. There was the The legislative clerk called the roll. with both regions. deficit of $127 billion here just at the In short, I oppose the amendment Mr. NICKLES. I announce that the end of September for the year 1999; oth- and urge my colleagues to do so as Senator from Arizona (Mr. MCCAIN) erwise, running a deficit in the balance well. and the Senator from New Hampshire of trade of $300 billion; then with our The PRESIDING OFFICER. The (Mr. GREGG) are necessarily absent. current account deficit totaling $726 question is on agreeing to the motion The result was announced—yeas 57, billion in the last 7 years and our net to table amendment No. 2484. The yeas nays 40, as follows: external assets really in the liabilities and nays have been ordered.

VerDate 29-OCT-99 03:25 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.077 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13675 The clerk will call the roll. Mr. COCHRAN. Under rule XXII, I prohibited a career Federal prosecutor The assistant legislative clerk called yield my hour to the majority man- from raising the statute to prevent the roll. ager. Dickerson, a serial bank robber, from Mr. NICKLES. I announce that the Mr. EDWARDS. I yield 50 minutes al- going free, and had actively refused to Senator from Arizona (Mr. MCCAIN) lotted to me to the senior Senator from permit other prosecutors from using and the Senator from New Hampshire New York so he may yield to the junior the statute. However, it had held out (Mr. GREGG) are necessarily absent. Senator from Wisconsin. the possibility that it would defend the The result was announced—yeas 70, Mr. LAUTENBERG. Under rule XXII, law before the Supreme Court. Indeed, nays 27, as follows: I yield my hour to the Senator from prior to the time the Department was [Rollcall Vote No. 348 Leg.] New York. forced to take a position in the YEAS—70 The PRESIDING OFFICER. Without Dickerson case, the Attorney General Abraham Feinstein Mack objection, it is so ordered. and Deputy Attorney General had indi- Allard Fitzgerald McConnell f cated to the Judiciary Committee that Ashcroft Frist Moynihan the Department would defend Section Baucus Gorton Murkowski UNANIMOUS CONSENT Bayh Graham Murray 3501 in appropriate cases. Bennett Gramm Nickles AGREEMENT—S. 900 The Attorney General’s refusal to en- Biden Grams Reid Mr. ROTH. I ask unanimous consent force the law puts her at odds with her Bingaman Grassley Roberts predecessors. Former Attorneys Gen- Bond Hagel Roth the majority leader, after consultation Breaux Harkin Santorum with the minority leader, may proceed eral Meese, Thornburg, and Barr have Brownback Hatch Schumer to consideration of the conference re- informed me through letters that they Bryan Hutchinson Sessions port to accompany the financial serv- did not prevent the statute from being Burns Hutchison Shelby used during their tenures, and indeed, Cochran Inhofe Smith (OR) ices bill and provide further that the Conrad Jeffords Specter conference report has been made avail- that the statute had been advanced in Coverdell Kerrey Stevens able and the conference report be con- some lower court cases in prior Admin- Craig Kerry Thomas istrations. They added that the law Crapo Kyl Thompson sidered as having been read and the Daschle Landrieu Voinovich Senate proceed to its immediate con- should be enforced today. During a DeWine Leahy Warner sideration. hearing on this issue in the Judiciary Dodd Lieberman Wellstone I further ask that there be 4 hours Criminal Justice Oversight Sub- Domenici Lincoln Wyden committee, which I chair, all the wit- Enzi Lott equally divided between the chairman Feingold Lugar and the ranking minority member, an nesses except one shared this view. The position of the Justice Depart- NAYS—27 additional hour under the control of Senator SHELBY, 1 hour for Senator ment is also contrary to the views of Akaka Edwards Mikulski law enforcement groups, which believe Boxer Helms Reed WELLSTONE, 30 minutes for Senator Bunning Hollings Robb BRYAN, and 20 minutes for Senator that Miranda warnings normally Byrd Inouye Rockefeller DORGAN. I further ask consent that no should be given but that we should not Campbell Johnson Sarbanes permit legal technicalities to stand in Cleland Kennedy Smith (NH) motions be in order and a vote occur on Collins Kohl Snowe adoption of the conference report at the way of an otherwise voluntary con- Dorgan Lautenberg Thurmond the conclusion or yielding back of my fession and justified prosecution. Most Durbin Levin Torricelli time without any intervening action or recently, according to press reports, NOT VOTING—2 debate. even Federal prosecutors urged Justice Gregg McCain The PRESIDING OFFICER. Without officials to defend this law. It was all to no avail. In my view, the Depart- The motion was agreed to. objection, it is so ordered. Mr. ROTH. In light of this agree- ment has a duty to defend this law, Mr. ROTH. I move to reconsider the just as it should defend any law that is vote. ment, there will be no further votes this evening. not clearly unconstitutional. Each Mr. MOYNIHAN. I move to lay that court that has directly considered the f motion on the table. issue has upheld the law. Nevertheless, The motion to lay on the table was MORNING BUSINESS the Justice Department will not abide agreed to. by its duty to defend the statute, and I Mr. ROTH. I ask unanimous consent AMENDMENT NO. 2406 believe it is critical that the Congress the Senate now proceed to a period of Mr. ROTH. At the request of the Sen- file an amicus brief or intervene in the morning business with Senators per- ator from Wisconsin and with the ap- Supreme Court defending it. proval of the senior Senator from New mitted to speak for up to 10 minutes In this case, the Justice Department York, I ask that the yeas and nays be each. has deliberately chosen to side with de- vitiated with respect to amendment The PRESIDING OFFICER. Without fense attorneys over prosecutors and No. 2406. I ask unanimous consent that objection, it is so ordered. law enforcement. It has deliberately the Senate conduct a voice vote on this f chosen to side with criminals over vic- amendment. VOLUNTARY CONFESSIONS LAW tims and their families. This is a seri- The PRESIDING OFFICER. Without ous error. The Department should not objection, it is so ordered. Mr. THURMOND. Mr. President, I make arguments in the courts on be- The question is on agreeing to the rise today to express my deep dis- half of criminals. This is a sad day for motion to table amendment No. 2406. appointment at the Justice Depart- the Department of Justice. The motion was agreed to. ment’s decision not to defend a law of f Mr. ROTH. I move to reconsider the Congress regarding voluntary confes- vote. sions. THUGGERY IN KOSOVO Mr. MOYNIHAN. I move to lay that Last evening, the Justice Depart- Mr. BIDEN. Mr. President, I rise motion on the table. ment responded to the petition for cer- today to condemn in the strongest The motion to lay on the table was tiorari from the Fourth Circuit manner possible the anti-democratic agreed to. Dickerson case, which had upheld 18 violence that continues in Kosovo. This Mr. BIDEN. Mr. President, under rule U.S.C. Section 3501, a law the Congress violence takes many forms, the most XXII, I yield my hour to the Demo- passed in 1968 to govern voluntary con- widely publicized of which is attacks cratic leader. fessions. The Department refused to de- by ethnic Albanians on Serbs and other Mr. THOMAS. Mr. President, under fend the law, arguing that it is uncon- minority groups in the province. KFOR rule XXII, I yield my hour to the ma- stitutional under Miranda v. Arizona. and the U.N. Mission must stamp out jority manager of the bill. This position should not be sur- these attacks immediately. Mr. REED. Mr. President, under rule prising. Earlier, the Clinton Justice What has received less media atten- XXII, I yield my hour to the minority Department had refused to defend the tion is the intimidation, and occasional leader. law in the lower Federal courts. It had violence, within the ethnic Albanian

VerDate 29-OCT-99 04:27 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.082 pfrm01 PsN: S02PT1 S13676 CONGRESSIONAL RECORD — SENATE November 2, 1999 community. Recently there were public tolerable. And it conveys the impression to the means. Basically this is an insur- threats against the lives of two of the international community that you and ance program run by the Federal Gov- Kosovo’s most respected journalists, some of your former KLA colleagues main- ernment for corporations who want to Veton Surroi and Baton Haxhiu, edi- tain a hidden agenda for Kosovo that is far invest in risky political situations. from democratic. tors of the newspaper ‘‘Koha Ditore.’’ I want to make one thing absolutely clear: This leads to the question, ‘‘Is this the On my trip to Kosovo eight weeks I am convinced there will be no support appropriate role for government?’’ I ago, I met with Mr. Surroi. He had al- among Kosovo’s friends around the world, in- don’t believe so. But I also understand ready spoken out against violence cluding me, for the replacement of a Serbian that the time is not yet ripe for ending against Kosovo’s Serbs and was already dictatorship by an ethnic Albanian copy. If this program. receiving private threats as a result. Kosovo’s future is not to be democratic, then I have met with the President of Mr. Surroi is a worldly, courageous it will not likely be independent either. Inde- OPIC, George Munoz. He and I have democrat—exactly the sort of person pendence must be earned in the democratic agreed that our problem is not a con- political arena as well as on the battlefield. that Kosovo needs to achieve genuine flict of interest, not different goals, Support among the American people and and not a lack of proper communica- democracy. their elected representatives and govern- During the same trip, I also met with ment for the people of Kosovo would dis- tion. We merely have a fundamental Hashim Thaqi, political leader of the appear rapidly if Kosovo moved in non-demo- philosophical difference. I believe free Kosovo Liberation Army. I told Mr. cratic directions. trade means free trade, not ‘‘more free Thaqi that he and his forces would Unfortunately, the actions of some who than others.’’ have to submit unconditionally to ci- support you, and your own apparent indiffer- I am a free trader. I am a supporter vilian authority and respect the rights ence and inaction in the face of the killing of of the GATT and NAFTA. I believe Kosovo citizens, are already jeopardizing the of all political parties, ethnic groups, that free trade is the best way to raise continuation of that support. The pattern of the living standards for all Americans. and individuals in Kosovo. violence against Kosovo Serbs appears to re- With this as background, Mr. Presi- We need to support policies that reduce flect in part an organized effort by some in trade barriers. OPIC does not reduce dent, I ask unanimous consent that an the former KLA to expel all Serbs from open letter published in Kosova Sot on Kosovo. The murder of elderly Serbs and un- trade barriers for all companies to October 29, 1999 by James R. Hooper, armed villagers evokes an atmosphere of ter- compete in the marketplace. It is an President of the Balkan Action Coun- ror in which innocent minorities are brutal- income transfer program from U.S. ized by those with the power to dispense vic- taxpayers to a selected group of busi- cil, to Mr. Thaqi appear in the RECORD tor’s ‘‘justice.’’ after my remarks. nesses. These subsidies may increase A Kosovo in which the rights of non-Alba- exports for a few selected companies The PRESIDING OFFICER. Without nian minorities are routinely violated is not objection, it is so ordered. that have the political influence to se- likely to prove respectful of Albanians whose cure these loans, but it does little to (See exhibit 1.) views do not fit those of the prevailing expand the overall economic growth of Mr. Hooper, incidentally, testified forces. After all, this is the model Belgrade this country. before the Foreign Relations Com- used for over ten years. A mono-ethnic OPIC’s re-authorization will soon mittee earlier this year and is consid- Kosovo forcibly cleansed of its minorities pass this Senate, but I wish it to be ered to be one of this country’s most through violence is unlikely to be a demo- cratic Kosovo. known that I still recommend its ter- knowledgeable experts on the Balkans. While you have spoken out against the mination. I continue to worry that the Mr. President, those of us in the Con- killings of ethnic Serbs in the past, you have majority of my colleagues will not gress who supported the legitimate taken few serious steps to rein in those who fully understand the detrimental rights of the people of Kosovo to escape are organizing the violence. I strongly urge potentialities of this organization until the brutality of Slobodan Milosevic you to take determined action to remove the American taxpayer is stuck with a suspicions that you condone the violence will not stand idly by and watch a Ser- tremendous bill. bian tyrannical master be replaced by against Kosovo’s non-Albanian minorities f an ethnic Albanian one. and to condemn the threats to Veton Surroi As Mr. Hooper’s eloquent letter and Baton Haxhiu. COSPONSORSHIP OF AMENDMENT JAMES HOOPER, makes clear, Mr. Thaqi and the other Executive Director, Mr. ROBB. Mr. President, on October leaders of the Kosovo Liberation Army Balkan Action Council. 20, 1999, during debate over S. 1692, the must immediately and forcefully speak Partial Birth Abortion Ban Act, I had f out against the thuggery that is af- asked to be added as a cosponsor of flicting the province and take meas- OVERSEAS PRIVATE INVESTMENT Senate amendment 2319, offered by ures to eradicate it. CORPORATION Senator DURBIN. Unfortunately, my co- Mr. President, if they do not, they sponsorship of this amendment was Mr. ALLARD. Mr. President, I am will lose the support of the inter- never reflected in the RECORD. There- national community. And without that not going to ask for a recorded vote fore, I ask unanimous consent that my support, they themselves have no polit- against S. 688, the re-authorization of name be added as a cosponsor of Sen- the Overseas Private Investment Cor- ical future. ator DURBIN’s amendment, and that the poration. But I want to make it clear I thank the Chair and yield the floor. RECORD reflect that I was a cosponsor that I am not stepping back from my OCTOBER 29, 1999. of this amendment when it was offered philosophies on this issue. OPEN LETTER TO HASHIM THAQI: I am deep- on October 20, 1999. During my campaign for the United ly troubled by the public threats against f Veton Surroi and Baton Haxhiu of Koha States Senate, I stressed the themes of Ditore that recently appeared in balancing the budget, congressional re- THE VERY BAD DEBT BOXSCORE Kosovapress, the media organ associated form, making government smaller, and Mr. HELMS. Mr. President, at the with your organization. Surroi and Haxhiu moving the power out of Washington close of business yesterday, Monday, are viewed in the United States and Europe and into the states and localities. That November 1, 1999, the Federal debt as two of the most prominent supporters of is why I introduced the ‘‘Overseas Pri- democracy and free speech in Kosovo. If they stood at $5,664,867,046,795.77 (Five tril- are at risk, it means that Kosovo’s hopes for vate Investment Corporation Termi- lion, six hundred sixty-four billion, democracy and free speech are jeopardized as nation Act.’’ eight hundred sixty-seven million, well. I still fee it is time to end this form forty-six thousand, seven hundred nine- Your unwillingness to immediately con- of subsidies for large companies. I have ty-five dollars and seventy-seven demn such extreme attacks on two out- never believed in giveaway programs. cents). standing representatives of Kosovo’s civil so- Whether you are a farmer or a large Five years ago, November 1, 1994, the ciety suggests that you hold a vision of corporation you should play by the Federal debt stood at $4,728,710,000,000 Kosovo’s political future in which those who rules of the free market system. Less democratically express differences of opinion (Four trillion, seven hundred twenty- will not be tolerated, and dissent will be government should be in the motto of eight billion, seven hundred ten mil- harshly disciplined. this and every Congress. lion). This in turn projects to your fellow citi- OPIC may seem to have a good end Ten years ago, November 1, 1989, the zens an anti-democratic attitude that is in- goal but the problem is not the end but Federal debt stood at $2,879,489,000,000

VerDate 29-OCT-99 03:25 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.087 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13677 (Two trillion, eight hundred seventy- H.R. 2889. An act to amend the Central EC–5984. A communication from the Chair- nine billion, four hundred eighty-nine Utah Project Completion Act to provide for man, National Endowment for the Arts, million). acquisition of water and water rights for transmitting, pursuant to law, a report rel- Fifteen years ago, November 1, 1984, Central Utah Project purposes, completion of ative to its commercial activities inventory; the Federal debt stood at Central Utah project facilities, and imple- to the Committee on Governmental Affairs. mentation of water conservation measures. EC–5985. A communication from the Ad- $1,624,438,000,000 (One trillion, six hun- ministrator, Environmental Protection dred twenty-four billion, four hundred The message also announced that the House has agreed to the following con- Agency, transmitting, pursuant to law, a re- thirty-eight million). port relative to its commercial activities in- Twenty-five years ago, November 1, current resolution, in which it requests ventory; to the Committee on Governmental 1974, the Federal debt stood at the concurrence of the Senate: Affairs. $479,476,000,000 (Four hundred seventy- H. Con. Res. 189. Concurrent resolution ex- EC–5986. A communication from the Assist- nine billion, four hundred seventy-six pressing the sense of the Congress regarding ant Secretary, Legislative Affairs, Depart- ment of State, transmitting, pursuant to the million) which reflects a debt increase the wasteful and unsportsmanlike practice known as shark finning. Arms Export Control Act, a report relative of more than $5 trillion— to certification of a proposed license for the $5,185,391,046,795.77 (Five trillion, one ENROLLED BILL SIGNED At 5:34 p.m., a message from the export of defense articles or defense services hundred eighty-five billion, three hun- sold commercially under a contract in the House of Representatives, delivered by dred ninety-one million, forty-six thou- amount of $50,000,000 or more to Turkey; to Mr. Berry, one of its reading clerks, an- sand, seven hundred ninety-five dollars the Committee on Foreign Relations. nounced that the Speaker has signed and seventy-seven cents) during the EC–5987. A communication from the Assist- the following enrolled bill: ant Secretary, Legislative Affairs, Depart- past 25 years. H.R. 3064. An act making appropriations ment of State, transmitting, pursuant to the f for the District of Columbia, and for the De- Arms Export Control Act, a report relative MESSAGES FROM THE HOUSE partments of Labor, Health, and Human to certification of a proposed license for the Services, and Education, and Related Agen- export of defense articles or defense services ENROLLED BILL SIGNED cies for the fiscal year ending September 30, sold commercially under a contract in the At 10:43 a.m., a message from the 2000, and for other purposes. amount of $50,000,000 or more to Turkey; to House of Representatives, delivered by the Committee on Foreign Relations. The enrolled bill was signed subse- EC–5988. A communication from the Assist- Mr. Berry, one of its reading clerks, an- quently by the President pro tempore nounced that the Speaker has signed ant Secretary, Legislative Affairs, Depart- (Mr. THURMOND). the following enrolled bill: ment of State, transmitting, pursuant to the f Arms Export Control Act, a report relative H.R. 2303. An act to direct the Librarian of to certification of a proposed license for the Congress to prepare the history of the House MEASURE READ THE FIRST TIME export of defense articles or defense services of Representatives, and for other purposes. The following bill was read the first sold commercially under a contract in the The enrolled bill was signed subse- time: amount of $50,000,000 or more to the Republic quently by the President pro tempore of Korea; to the Committee on Foreign Rela- H.R. 1883. An act to provide the application (Mr. THURMOND). tions. of measures to foreign persons who transfer EC–5989. A communication from the Assist- At 11:50 a.m., a message from the to Iran certain goods, services, or tech- ant Secretary, Legislative Affairs, Depart- nology, and for other purposes. House of Representatives, delivered by ment of State, transmitting, pursuant to the f Mr. Hanrahan, one of its reading Arms Export Control Act, a report relative clerks, announced that the House has EXECUTIVE AND OTHER to certification of a proposed license for the export of defense articles or defense services agreed to the amendment of the Senate COMMUNICATIONS sold commercially under a contract in the to the bill (H.R. 974) to establish a pro- The following communications were amount of $50,000,000 or more to Canada; to gram to afford high school graduates laid before the Senate, together with the Committee on Foreign Relations. from the District of Columbia the ben- accompanying papers, reports, and doc- EC–5990. A communication from the Assist- efits of in-State tuition at State col- uments, which were referred as indi- ant Secretary, Legislative Affairs, Depart- ment of State, transmitting, pursuant to the leges and universities outside the Dis- cated: trict of Columbia, and for other pur- Arms Export Control Act, a report relative EC–5980. A communication from the Dep- to certification of a proposed license for the poses. uty Assistant Administrator for Fisheries, export of defense articles or defense services The message also announced that the Office of Sustainable Fisheries, National Ma- sold commercially under a contract in the House has passed the following bills, in rine Fisheries Service, Department of Com- amount of $50,000,000 or more to Israel; to the which it requests the concurrence of merce, transmitting, pursuant to law, the re- Committee on Foreign Relations. the Senate: port of a rule entitled ‘‘Technical Amend- EC–5991. A communication from the Assist- H.R. 348. An act to authorize the construc- ment, Revises Outdated Terminology, Re- ant Secretary, Legislative Affairs, Depart- tion of a monument to honor those who have moves Outdated Provisions, and Makes ment of State, transmitting, pursuant to the served the Nation’s civil defense and emer- Other Minor Changes for Clarity and Con- Arms Export Control Act, a report relative gency management programs. sistency’’, received October 29, 1999; to the to certification of a proposed license for the H.R. 862. An act to authorize the Secretary Committee on Commerce, Science, and export of defense articles or defense services of the Interior to implement the provisions Transportation. sold commercially under a contract in the of the Agreement conveying title to a Dis- EC–5981. A communication from the Direc- amount of $14,000,000 or more to Finland; to tribution System from the United States to tor of the Office of Management and Budget, the Committee on Foreign Relations. the Clear Creek Community Services Dis- Executive Office of the President, transmit- EC–5992. A communication from the Assist- trict. ting, pursuant to law, a report on direct ant Secretary, Legislative Affairs, Depart- H.R. 992. An act to convey the Sly Park spending or receipts legislation dated Octo- ment of State, transmitting, pursuant to the Dam and Reservoir to the El Dorado Irriga- ber 27, 1999; to the Committee on the Budget. Arms Export Control Act, a report relative tion District, and for other purposes. EC–5982. A communication from the Prin- to certification of a proposed transfer of H.R. 1235. An act to authorize the Sec- cipal Deputy Under Secretary of Defense, Ac- major defense equipment valued (in terms of retary of the Interior to enter into contracts quisition and Technology, transmitting, pur- its original acquisition cost) at $14,000,000 or with the Solano County Water Agency, Cali- suant to law, a report entitled ‘‘Establishing more to the United Kingdom; to the Com- fornia, to use Solano Project facilities for an Entitlement to Reimburse Rental Car mittee on Foreign Relations. impounding, storage, and carriage of non- Costs to Military Members’’; to the Com- EC–5993. A communication from the Assist- project water for domestic, municipal, indus- mittee on Armed Services. ant Secretary, Legislative Affairs, Depart- trial, and other beneficial purposes. EC–5983. A communication from the Dep- ment of State, transmitting, pursuant to the H.R. 2632. An act to designate certain Fed- uty Assistant Administrator for Fisheries, Arms Export Control Act, a report relative eral lands in the Talladega National Forest Office of Sustainable Fisheries, National Ma- to certification of a proposed Manufacturing in the State of Alabama as the Dugger rine Fisheries Service, Department of Com- License Agreement with the Czech Republic Mountain Wilderness. merce, transmitting, pursuant to law, the re- and Canada; to the Committee on Foreign H.R. 2737. An act to authorize the Sec- port of a rule entitled ‘‘Fisheries of the Ex- Relations. retary of the Interior to convey to the State clusive Economic Zone Off Alaska; Revisions EC–5994. A communication from the Assist- of Illinois certain Federal land associated to Recordkeeping and Reporting Require- ant Secretary, Legislative Affairs, Depart- with the Lewis and Clark National Historic ments’’, received October 29, 1999; to the ment of State, transmitting, pursuant to the Trail to be used as an historic and interpre- Committee on Commerce, Science, and Arms Export Control Act, a report relative tive site along the trail. Transportation. to certification of a proposed Manufacturing

VerDate 29-OCT-99 03:25 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.089 pfrm01 PsN: S02PT1 S13678 CONGRESSIONAL RECORD — SENATE November 2, 1999 License Agreement with the United King- EC–6006. A communication from the Direc- S. 439. A bill to amend the National Forest dom; to the Committee on Foreign Rela- tor, Office of Regulatory Management and and Public Lands of Nevada Enhancement tions. Information, Office of Policy, Planning and Act of 1988 to adjust the boundary of the EC–5995. A communication from the Assist- Evaluation, Environmental Protection Agen- Toiyabe National Forest, Nevada (Rept. No. ant Secretary, Legislative Affairs, Depart- cy, transmitting, pursuant to law, the report 106–205). ment of State, transmitting, pursuant to the of a rule entitled ‘‘Buprofezin; Extension of By Mr. MURKOWSKI, from the Committee Arms Export Control Act, a report relative Tolerance for Emergency Exemptions’’ (FRL on Energy and Natural Resources, with to certification of a proposed Manufacturing #6387–4), received October 29, 1999; to the amendments. License Agreement with Mexico; to the Com- Committee on Agriculture, Nutrition, and S. 977. A bill to provide for the conveyance mittee on Foreign Relations. Forestry. by the Bureau of Land Management to Doug- EC–5996. A communication from the Assist- EC–6007. A communication from the Direc- lass County, Oregon, of a country park, and ant Secretary, Legislative Affairs, Depart- tor, Office of Regulatory Management and certain adjacent land (Rept. No. 106–206). ment of State, transmitting, pursuant to the Information, Office of Policy, Planning and By Mr. MURKOWSKI, from the Committee Arms Export Control Act, a report relative Evaluation, Environmental Protection Agen- on Energy and Natural Resources, with an to certification of a proposed Manufacturing cy, transmitting, pursuant to law, the report amendment in the nature of a substitute: S. 1296. A bill to designate portions of the License Agreement with Belgium; to the of a rule entitled ‘‘Propargite; Partial Stay lower Delaware River and associated tribu- Committee on Foreign Relations. of Order Revoking Certain Tolerances’’ (FRL taries as a component of the National Wild EC–5997. A communication from the Chair- #6390–4), received October 29, 1999; to the man, Broadcasting Board of Governors, and Scenic Rivers System (Rept. No. 106–207). Committee on Agriculture, Nutrition, and By Mr. MURKOWSKI, from the Committee transmitting, pursuant to law, the annual re- Forestry. port for fiscal year 1998; to the Committee on on Energy and Natural Resources, with EC–6008. A communication from the Direc- amendments. Foreign Relations. tor, Office of Regulatory Management and EC–5998. A communication from the Sec- S. 1349. A bill to direct the Secretary of the Information, Office of Policy, Planning and retary of Health and Human Services, trans- Interior to conduct special resource studies Evaluation, Environmental Protection Agen- mitting, pursuant to law, a report relative to to determine the national significance of cy, transmitting, a report entitled ‘‘Revision telemedicine; to the Committee on Finance. specific sites as well as the suitability and EC–5999. A communication from the Chief, to Emission Budgets Set Forth in EPA’s feasibility of their inclusion as units of the Regulations Unit, Internal Revenue Service, Finding of Significant Contribution and National Park System (Rept. No. 106–208). Department of the Treasury, transmitting, Rulemaking for Purposes of Reducing Re- S. 1569. A bill to amend the Wild and Sce- pursuant to law, the report of a rule entitled gional Transport of Ozone for the States of nic Rivers Act to designate segments of the ‘‘RIC Waivers and Reimbursement’’ (Rev. Connecticut, Massachusetts and Rhode Is- Taunton River in the Commonwealth of Mas- Proc. 99–40, 1999–46 I.R.B.), received October land’’; to the Committee on Agriculture, Nu- sachusetts for study for potential addition to 27, 1999; to the Committee on Finance. trition, and Forestry. the National Wild and Scenic Rivers System, EC–6000. A communication from the Acting EC–6009. A communication from the Asso- and for other purposes (Rept. No. 106–209). Assistant Secretary of Commerce and Acting ciate Chief, Policy Division, Wireless Tele- By Mr. MURKOWSKI, from the Committee Commissioner of Patents and Trademarks, communications Bureau, Federal Commu- on Energy and Natural Resources, without Patent and Trademark Office, Department of nications Commission, transmitting, pursu- amendment. Commerce, transmitting, pursuant to law, ant to law, the report of a rule entitled ‘‘Re- S. 1599. A bill to authorize the Secretary of the report of a rule entitled ‘‘Changes to Per- vision of the Commission’s Rules to Ensure Agriculture to sell or exchange all or part of mit Payment of Patent and Trademark Of- Compatibility with Enhanced 911 Emergency certain administrative sites and other land fice Fees by Credit Card’’ (RIN0651–AB07), re- Calling Systems’’ (Docket No. 94–102; FCC 99– in the Black Hills National Forest and to use ceived October 29, 1999; to the Committee on 245), received October 29, 1999; to the Com- funds derived from the sale or exchange to the Judiciary. mittee on Commerce, Science, and Transpor- acquire replacement sites and to acquire or EC–6001. A communication from the Assist- tation. construct administrative improvements in ant to the Board, Board of Governors of the EC–6010. A communication from the Trial connection with Black Hills National Forest Federal Reserve System, transmitting, pur- Attorney, Federal Railroad Administration, (Rept. No. 106–210). suant to law, the report of a rule entitled Department of Transportation, transmitting, By Mr. MURKOWSKI, from the Committee ‘‘Regulation CC, availability of Funds and pursuant to law, the report of a rule entitled on Energy and Natural Resources, with an Collection of Checks’’ (Docket No. R–1034), ‘‘Reinvention of Steam Locomotive Inspec- amendment: received October 29, 1999; to the Committee tion Regulations’’ (RIN2130–AB07), received H.R. 20. A bill to authorize the Secretary of on Banking, Housing, and Urban Affairs. October 29, 1999; to the Committee on Com- the Interior to construct and operate a vis- EC–6002. A communication from the Dep- merce, Science, and Transportation. itor center for the Upper Delaware Scenic uty Legal Counsel, Department of the Treas- EC–6011. A communication from the Chief, and Recreational River on land owned by the ury, transmitting, pursuant to law, the re- Office of Regulations and Administrative State of New York (Rept. No. 106–211). port of a rule entitled ‘‘Community Develop- Law, U.S. Coast Guard, Department of By Mr. MURKOWSKI, from the Committee ment Financial Institutions Program’’ Transportation, transmitting, pursuant to on Energy and Natural Resources, without (RIN1505–AA71), received October 27, 1999; to law, the report of a rule entitled ‘‘Draw- amendment. the Committee on Banking, Housing, and bridge Regulations; Debbies Creek, NJ H.R. 592. A bill to redesignate Great Kills Urban Affairs. (CGD05–99–111)’’ (RIN2115–AE47) (1999–0053), Park in the Gateway National Recreation EC–6003. A communication from the Ad- received October 29, 1999; to the Committee Area as ‘‘World War II Veterans Park at ministrator, Food Safety and Inspection on Commerce, Science, and Transportation. Great Kills’’ (Rept. No. 106–212). Service, Department of Agriculture, trans- EC–6012. A communication from the Chief, H.R. 1619. A bill to amend Quinebaug and mitting, pursuant to law, the report of a rule Office of Regulations and Administrative Shetucket Rivers Valley National Heritage entitled ‘‘Sanitation Requirements for Offi- Law, U.S. Coast Guard, Department of Corridor Act of 1994 to expand the boundaries cial Meat and Poultry Establishments’’ Transportation, transmitting, pursuant to of the Corridor (Rept. No. 106–213). (RIN0583–AC39), received October 29, 1999; to law, the report of a rule entitled ‘‘Vessel By Mr. BOND, from the Committee on the Committee on Agriculture, Nutrition, Identification System (CGD 89–050)’’ Small Business, with an amendment in the and Forestry. (RIN2115–AD35) (1999–0002), received October nature of a substitute: S. 791. A bill to amend the Small Business EC–6004. A communication from the Con- 29, 1999; to the Committee on Commerce, Act with respect to the women’s business gressional Review Coordinator, Regulatory Science, and Transportation. center program (Rept. No. 106–214). Analysis and Development, Policy and Pro- EC–6013. A communication from the Chief, gram Development, Animal and Health In- By Mr. HATCH, from the Committee on Office of Regulations and Administrative the Judiciary, without amendment and with spection Service, Department of Agriculture, Law, U.S. Coast Guard, Department of transmitting, pursuant to law, the report of a preamble: Transportation, transmitting, pursuant to H.J. Res. 65. A joint resolution com- a rule entitled ‘‘Aeration of Imported Logs, law, the report of a rule entitled ‘‘Draw- Lumber, and Other Unmanufactured Wood mending the World War II veterans who bridge Regulations; Duluth Ship Canal (Du- fought in the Battle of the Bulge, and for Articles That Have Been Fumigated’’ (Dock- luth-Superior Harbor), MN (CGD09–99–077)’’ et #99–057–1), received October 29, 1999; to the other purposes. (RIN2115–AE47) (1999–0052), received October By Mr. HATCH, from the Committee on Committee on Agriculture, Nutrition, and 29, 1999; to the Committee on Commerce, the Judiciary, with an amendment: Forestry. Science, and Transportation. S. 1515. A bill to amend the Radiation Ex- EC–6005. A communication from the Under f posure Compensation Act, and for other pur- Secretary, Food, Nutrition and Consumer poses. Services, Department of Agriculture, trans- REPORTS OF COMMITTEES mitting, pursuant to law, the report of a rule f entitled ‘‘Food and Nutrition Services and The following reports of committees were submitted: EXECUTIVE REPORTS OF Administration Funding Formulas’’ COMMITTEE (RIN0584–AC77), received October 27, 1999; to By Mr. MURKOWSKI, from the Committee the Committee on Agriculture, Nutrition, on Energy and Natural Resources, without The following executive reports of a and Forestry. amendment: committee were submitted:

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.095 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13679 By Mr. HATCH, Committee on the Judici- AKAKA, Mr. CONRAD, Mrs. BOXER, Mr. extremely limited. This situation de- ary: HATCH, Mr. JOHNSON, Mr. KOHL, Mr. rives from the complex history of fed- Q. Todd Dickinson, of Pennsylvania, to be INHOFE, Mr. REID, Mr. ENZI, Mr. eral-tribal relations in California. In- Commissioner of Patents and Trademarks. MCCAIN, Mr. MURKOWSKI, Mr. THOM- stead of the approximately 8.5 million Anne H. Chasser, of Ohio, to be an Assist- AS, Mr. BURNS, Mr. GRAMS, Mr. ant Commissioner of Patents and Trade- DASCHLE, Mr. BENNETT, Mr. ALLARD, acres of land promised in the treaties, marks. Mr. STEVENS, Mr. CRAPO, Mr. WYDEN, the California tribes now reside on a Kathryn M. Turman, of Virginia, to be Di- Mr. FRIST, Mr. JEFFORDS, and Mr. little more than 400,000 acres. Approxi- rector of the Office for Victims of Crime. KENNEDY): mately one-third of California’s 107 fed- Melvin W. Kahle, of West Virginia, to be S. Res. 216. A resolution designating the erally recognized tribes have a land United States Attorney for the Northern Dis- Month of November 1999 as ‘‘National Amer- base of less than 50 acres; approxi- trict of West Virginia for a term of 4 years. ican Indian Heritage Month’’; to the Com- mately two-thirds have a land base of (The above nominations were re- mittee on the Judiciary. less than 500 acres, leaving little oppor- By Mr. HUTCHINSON: ported with the recommendation that S. Res. 217. A resolution relating to the tunity for these tribes to develop via- they be confirmed.) freedom of belief, expression, and association ble communities and economies where f in the People’s Republic of China; to the their members can live and work. Committee on Foreign Relations. The counties in which these lands are INTRODUCTION OF BILLS AND By Mr. TORRICELLI: located support the tribes’ efforts to JOINT RESOLUTIONS S. Con. Res. 65. A concurrent resolution ex- acquire these lands and have partici- The following bills and joint resolu- pressing the sense of Congress regarding the pated in the federal land planning proc- preservation of full and open competition for tions were introduced, read the first contracts for the transportation of United ess through which these parcels were and second time by unanimous con- States military cargo between the United identified and made available for trans- sent, and referred as indicated: States and the Republic of Iceland; to the fer to the tribes. This legislation also By Mrs. BOXER: Committee on Commerce, Science, and has the support of the Administration. S. 1840. A bill to provide for the transfer of Transportation. A similar bill, H.R. 2742, passed the public lands to certain California Indian By Mr. LOTT (for himself and Mr. House of Representatives last Congress Tribes; to the Committee on Indian Affairs. DASCHLE): and was placed on the Senate’s consent By Mr. COCHRAN: S. Con. Res. 66. A concurrent resolution to calendar but was never brought to a authorize the printing of ‘‘Capitol Builder: S. 1841. A bill to provide private chapter 7 vote before adjournment. An earlier panel trustees and chapter 13 standing trust- The Shorthand Journals of Captain Mont- ees with remedies for resolving disputes with gomery C. Meigs, 1853–1861’’; considered and version of the bill suffered the same the United States Trustee Program; to the agreed to. fate in the 104th Congress and I am in- Committee on the Judiciary. S. Con. Res. 67. A concurrent resolution to formed that the negotiations between By Mr. WELLSTONE: authorize the printing of ‘‘The United States the Department of the Interior and the S. 1842. A bill to combat trafficking of per- Capitol’’ A Chronicle, Design, and Politics’’; Tribes for transfer of these lands date sons in the United States and countries considered and agreed to. back to 1994. around the world through prevention, pros- f This legislation is the result of a ecution and enforcement against traffickers, multiyear cooperative effort by the and protection and assistance to victims of STATEMENTS ON INTRODUCED trafficking; to the Committee on Foreign BILLS AND JOINT RESOLUTIONS tribes, the Secretary, the BLM and the Bureau of Indian Affairs, in consulta- Relations. By Mrs. BOXER: tion with local country governments. By Mr. SESSIONS: S. 1840. A bill to provide for the This effort allows me to present a S. 1843. A bill to designate certain Federal transfer of public lands to certain Cali- land in the Talladega National Forest, Ala- model legislative blueprint for inter- fornia Indian tribes; to the Committee bama, as the ‘‘Dugger Mountain Wilderness’’; agency transfer of federal lands as a on Indian affairs. considered and passed. means of enhancing the extremely lim- By Mr. ROTH (for himself, Mr. MOY- CALIFORNIA INDIAN LAND TRANSFER ACT ited land and resources base of Califor- NIHAN, Mr. VOINOVICH, Mrs. FEIN- Mrs. BOXER. Mr. President, today I nia’s small tribes. The bill also stands STEIN, Mr. ROBERTS, Mrs. BOXER, Mr. am introducing the California Indian as an excellent example of federal, trib- ENZI, Mr. THOMAS, Mr. GRAMM, Mr. Land Transfer Act, which would trans- KERREY, Mrs. HUTCHISON, and Mr. al, and local governmental consulta- fer to eight California tribes approxi- BAYH): tion and collaboration within the plan- S. 1844. A bill to amend part D of title IV mately 3,500 acres of Bureau of Land ning process for disposition of federal of the Social Security Act to provide for an Management (BLM) land to be used for lands that have been formally classi- alternative penalty procedure with respect housing construction, grazing, resource fied as suitable for disposal. It is time to compliance with requirements for a State protection, and non-gaming economic for Congress to do its part and con- disbursement unit; considered and passed. development. By Mrs. BOXER (for herself and Mr. clude this successful intergovern- The eight tribes are the Pit River mental collaboration. LAUTENBERG): Tribe (Modoc County), the Fort Bidwell S. 1845. A bill to amend title 18, United I ask unanimous consent that the States Code, to prohibit the sale or transfer Indian Community (Modoc County), text of the bill and letters of support of a firearm or ammunition to an intoxicated the Pala Band of Mission Indians (San from the eight tribes and four counties person; to the Committee on the Judiciary. Diego County), the Cuyapaipe Band of affected by this legislation be included f Mission Indians (San Diego County), in the RECORD. the Manzanita Band of Mission Indians There being no objection, the mate- SUBMISSION OF CONCURRENT AND (San Diego County), the Barona Band rial was ordered to be printed in the SENATE RESOLUTIONS of Mission Indians (San Diego County), RECORD, as follows: The following concurrent resolutions and the Morongo Band of Mission Indi- S. 1840 ans (Riverside County). and Senate resolutions were read, and Be it enacted by the Senate and House of Rep- referred (or acted upon), as indicated: All of the parcels of BLM land are resentatives of the United States of America in contiguous to existing reservation By Mr. LOTT (for himself and Mr. Congress assembled, DASCHLE): trust lands and have been formally SECTION 1. SHORT TITLE. S. Res. 214. A resolution authorizing the classified as suitable for disposal This Act may be cited as the ‘‘California taking of photographs in the Chamber of the through the BLM land use planning Indian Land Transfer Act’’. United States Senate; considered and agreed process. SEC. 2. LANDS HELD IN TRUST FOR VARIOUS to. Many California Indian tribes now TRIBES OF CALIFORNIA INDIANS. By Mr. LOTT: lack reservations of sufficient size to (a) IN GENERAL.—Subject to valid existing S. Res. 215. A resolution making changes to provide housing or an economic base rights, all right, title, and interest of the Senate committees for the 106th Congress; adequate to meet the needs of their United States in and to the lands, including considered and agreed to. improvements and appurtenances, described By Mr. CAMPBELL (for himself, Mr. members and their families. Other in a paragraph of subsection (b) in connec- INOUYE, Mr. COCHRAN, Mr. GRASSLEY, California Indian reservations have tion with the respective tribe, band, or group Mrs. MURRAY, Mr. BINGAMAN, Mr. such poor quality lands that the tribal of Indians named in such paragraph are here- DOMENICI, Mr. SMITH of Oregon, Mr. options for economic development are by declared to be held in trust by the United

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.098 pfrm01 PsN: S02PT1 S13680 CONGRESSIONAL RECORD — SENATE November 2, 1999

States for the benefit of such tribe, band, or (6) MORONGO BAND OF MISSION INDIANS.— Fort Bidwell, 300 acres, Modoc County; group. Real property taken into trust pursu- Lands to be held in trust for the Morongo Fort Independence, 200 acres, Inyo County; ant to this subsection shall not be considered Band of Mission Indians are comprised of ap- Morongo, 40 acres, San Diego County; to have been taken into trust for gaming (as proximately 40 acres described as follows: Manzanita, 1,000 acres, San Diego County; that term is used in the Indian Gaming Reg- San Bernardino Base and Meridian Pala, 60 acres, San Diego County; and ulatory Act (25 U.S.C. 2701 et seq.)). Township 3 South, Range 2 East XL Ranch/Pit River, 562 acres, Modoc ANDS DESCRIBED.—The lands described County. (b) L Section 20: in this subsection, comprising approximately In each of these cases the lands are sur- NW1⁄4 of NE1⁄4. 3525.8 acres, and the respective tribe, band, rounded by or directly adjacent to the (7) PALA BAND OF MISSION INDIANS.—Lands Tribes’ existing reservations. The tracts or group, are as follows: to be held in trust for the Pala Band of Mis- IT RIVER TRIBE.—Lands to be held in identified represent scattered, unmanageable (1) P sion Indians are comprised of approximately trust for the Pit River Tribe are comprised tracts of public lands that have been identi- 59.20 acres described as follows: of approximately 561.69 acres described as fied in our land use plans for disposal. The San Bernardino Base and Meridian follows: Tribes have indicated these lands will add to Mount Diablo Base and Meridian Township 9 South, Range 2 West economic viability of their reservations and Township 42 North, Range 13 East Section 13, Lot 1, and Section 14, Lots 1, 2, we are pleased to assist them in this impor- 3. tant endeavor. Section 3: (8) FORT BIDWELL COMMUNITY OF PAIUTE IN- We look forward to introduction of your S1⁄2 NW1⁄4, NW1⁄4 NW1⁄4, 120 acres. DIANS.—Lands to be held in trust for the Fort legislation in the 106th Congress on this im- Township 43 North, Range 13 East Bidwell Community of Paiute Indians are portant public issue. Please let us know if we Section 1: comprised of approximately 299.04 acres de- can assist you in any way. N1⁄2 NE1⁄4, 80 acres, scribed as follows: Sincerely, Section 22: Mount Diablo Base and Meridian ELAINE MARQUIS-BRONG SE1⁄4 SE1⁄4, 40 acres, Township 46 North, Range 16 East (For Al Wright, Acting State Director). Section 25: Section 8: SE1⁄4 NW1⁄4, 40 acres, RESOLUTION NO. 99–34 SW1⁄4SW1⁄4. Section 26: Section 19: Be it hereby Resolved, That the Board of 1 1 SW ⁄4 SE ⁄4, 40 acres, Lots 5, 6, 7. Supervisors affirms its earlier support (in Section 27: S1⁄2NE1⁄4, SE1⁄4NW1⁄4, NE1⁄4SE1⁄4. Resolutions 95–29 and 96–39) of the introduc- SE1⁄4 NW1⁄4, 40 acres, Section 20: tion of the California Indian Land Transfer Section 28: Lot 1. Act (copy attached), which would transfer NE1⁄4 SW1⁄4, 40 acres, SEC. 3. MISCELLANEOUS PROVISIONS. approximately 860 acres of public lands under Section 32: (a) PROCEEDS FROM RENTS AND ROYALTIES the jurisdiction of the Bureau of Land Man- SE1⁄4 SE1⁄4, 40 acres, TRANSFERRED TO INDIANS.—Amounts which agement to the United States of America in Section 34: accrue to the United States after the date of trust for the Pit River Tribe (560 acres) and SE1⁄4 NW1⁄4, 40 acres, the enactment of this Act from sales, bo- the Fort Bidwell Community of Paiute Indi- Township 44 North, Range 14 East, nuses, royalties, and rentals relating to any ans (300 acres) to be added to the tribal trust Section 31: land described in section 2 shall be available lands of their respective reservations. S1⁄2 SW1⁄4, 80 acres. for use or obligation, in such manner and for (2) FORT INDEPENDENCE COMMUNITY OF PAI- such purposes as the Secretary may approve, BOARD OF SUPERVISORS, UTE INDIANS.—Lands to be held in trust for by the tribe, band, or group of Indians for COUNTY OF RIVERSIDE, the Fort Independence Community of Paiute whose benefit such land is taken into trust. Riverside, CA, August 31, 1999. Indians are comprised of approximately (b) NOTICE OF CANCELLATION OF GRAZING Senator BARBARA BOXER, 200.06 acres described as follows: PREFERENCES.—Grazing preferences on lands Suite 112, Senate Hart Office Bldg., Mount Diablo Base and Meridian described in section 2 shall terminate 2 years Washington, DC. Township 13 South, Range 34 East after the date of the enactment of this Act. DEAR SENATOR BOXER: We are writing to (c) LAWS GOVERNING LANDS TO BE HELD IN convey our support for the California Indian Section 1: TRUST.— land Transfer Act (CILTA) and to urge your W1⁄2 of Lot 5 in the NE1⁄4, Lot 3, E1⁄2 of Lot (1) IN GENERAL.—Any lands which are to be support of this legislation. CILTA would 4, and E1⁄2 of Lot 5 in the NW1⁄4. held in trust for the benefit of any tribe, transfer to eight California Indian tribes a (3) BARONA GROUP OF CAPITAN GRANDE BAND band, or group of Indians pursuant to this total of approximately 3,500 acres of Bureau OF MISSION INDIANS.—Lands to be held in Act shall be added to the existing reserva- of Land Management (BLM) land to be used trust for the Barona Group of Capitan tion of the tribe, band, or group, and the offi- for housing construction, grazing, resource Grande Band of Mission Indians are com- cial boundaries of the reservation shall be protection, and non-gaming economic devel- prised of approximately 5.03 acres described modified accordingly. opment. as follows: (2) APPLICABILITY OF LAWS OF THE UNITED In our district this would mean the trans- San Bernardino Base and Meridian STATES.—The lands referred to in paragraph fer of approximately 40 acres, presently Township 14 South, Range 2 East (1) shall be subject to the laws of the United under the jurisdiction of the Bureau of Land Section 7, Lot 15. States relating to Indian land in the same management to the United States of Amer- (4) CUYAPAIPE BAND OF MISSION INDIANS.— manner and to the same extent as other ica in trust for the Morongo Land of Mission Lands to be held in trust for the Cuyapaipe lands held in trust for such tribe, band, or Indians to be added to the tribal trust lands Band of Mission Indians are comprised of ap- group on the day before the date of enact- of the Morongo Indian Reservation. proximately 1,360 acres described as follows: ment of this Act. The current version of the CILTA passed San Bernardino Base and Meridian the House of Representative last year as H.R. Township 15 South, Range 6 East DEPARTMENT OF THE INTERIOR, BU- 2742 and was placed on the Senate’s consent calendar, but was never brought to a vote be- Section 21: REAU OF LAND MANAGEMENT, fore adjournment. Last session was the sec- All of this section. CALIFORNIA STATE OFFICE, ond time that the bill has passed the House Section 31: Sacramento, CA, October 8, 1999. Senator BARBARA BOXER, without timely action in the Senate. NE1⁄4, N1⁄2SE1⁄4, SE1⁄4SE1⁄4. California county governments have been Section 32: 112 Hart Senate Office Building, Washington, DC. supportive of the tribes’ past efforts to ob- W1⁄2SW1⁄4, NE1⁄4SW1⁄4, NW1⁄4SE1⁄4. tain additional lands for such uses as hous- Section 33: DEAR SENATOR BOXER: Thank you for your inquiry regarding your planned introduction ing, grazing, resource protection, and non- SE1⁄4, SW1⁄4SW1⁄4, E1⁄2SW1⁄4. of the California Indian Land Transfer Act. gaming economic development. Moreover, (5) MANZANITA BAND OF MISSION INDIANS.— county governments have had varying de- Lands to be held in trust for the Manzanita As you know, the Administration has twice grees of involvement with the federal and Band of Mission Indians are comprised of ap- forwarded proposed legislation to Congress planning process through which these par- proximately 1,000.78 acres described as fol- (in the 104th and the 105th) to effect these cels were identified and made available for lows: land transfers which must be done legisla- transfer to the tribes. San Bernardino Base and Meridian tively. The Bureau of Land Management (BLM) has worked cooperatively for many CILTA has the unqualified support of the Township 16 South, Range 6 East years with the eight Tribes and the local Administration, which has invested consid- Section 21: governments involved to see these transfers ered time and effort in urging its enactment. Lots 1, 2, 3, and 4, S1⁄2. are completed. The Secretary of the Interior personally Section 25: The tribes, acreages, and counties involved transmitted the bill to the Congress last Lots 2 and 5. are as follows: year with his strong recommendation that it Section 28: Barona, 5 acres, San Diego County: be enacted at the earliest possible date. The Lots, 1, 2, 3, and 4, N1⁄2SE1⁄4. Cuyapaipe, 1,360 acres, San Diego County; Secretary remains similarly committed to

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.103 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13681 supporting the bill’s passage during the cur- applicable federal and tribal laws will ad- FORT INDEPENDENCE rent session of Congress. dress the following issues/concerns, and, in INDIAN RESERVATION, CILTA is the result of a multi-year, coop- those situations where the County is of the Independence, CA, October 13, 1999. erative effort by the tribes, the Secretary, opinion that federal and tribal laws do not Re California Indian Land Transfer Act. the BLM and the Bureau of Indian Affairs, in adequately address its concerns, to discuss Hon. BARBARA BOXER, consultation with local county governments. what standards and/or approaches the Tribe U.S. Senate, It presents a model legislative blueprint for might incorporate into its development plan Washington, DC. inter-agency transfer of federal lands as a or laws, looking to state and local laws for DEAR SENATOR BOXER: On behalf of the means of enhancing the extremely limited guidance, so to address, to a reasonable ex- Fort Independence Community of Paiute In- land and resource base of California’s small tent, the County’s concerns: dians, I want to express our thanks for your tribes. It also illustrates how federal, tribal (1) Building design and construction; agreement to introduce the California Indian and local governmental consultation can (2) Land use, planning and zoning; Land Transfer Act, a bill that would transfer successfully occur within the framework of to eight California Indian Tribes a total of (3) Health; an existing federal planning process. approximately 3,500 acres of Bureau of Land We hope this letter conveys our support for (4) Environmental health; Management (BLM) land to be used for hous- this important legislation and urge you to (5) Animal control; ing construction, grazing resource protection support its passage. (6) Streets, highways and roads; and nongaming economic development. Sincerely, (7) Environmental quality; Under the bill’s provisions, our tribe will ac- JIM VENABLE, quire approximately 200 acres of BLM land. Supervisor, Third District. (8) Police protection; These lands would be added to the tribal (9) Fire protection; trust lands of the Fort Independence Indian RESOLUTION NO. 99–170 (10) Water supply; Reservation. We expect to use the land for Now, be it resolved by the Board of Super- (11) Sewage disposal; non-gaming economic development. We sincerely appreciate your support for visors of the County of San Diego, supports (12) School facilities; the introduction of the California Indian this important legislation. (13) Funding for county-provided services; Sincerely, Land Transfer Act, which would transfer a and total of approximately 2,525 acres of public WENDY L. STINE, lands under the jurisdiction of the Bureau of (14) Gaming. Chairperson. Land Management to the United States of Be it further Resolved, That the Clerk of America in trust for the Barona (5.03 acres), the Board is directed to distribute this Reso- BARONA BAND OF MISSION INDIANS, Cuyapaipe (1,360 acres), Manzanita (1,000.78 lution to the Fort Independence Indian Trib- Lakeside, CA, March 9, 1999. acres), and Pala (59.20) acres) Bands of Mis- al Council, the Secretary of the Interior, Re Proposed Southern California Indian sion Indians to be added to the tribal trust United States Senators Boxer and Feinstein, Land Transfer Act. lands of their respective reservations. the Governor of the State of California, rep- DEAR SENATOR BOXER: By now you should resentatives of Inyo County in the United have received the letter of today’s date from RESOLUTION NO. 99–41 States House of Representatives and the Stephen V. Quesenberry of California Indian Legal Services, voicing the support of his six Whereas, on July 6, 1999, the Fort Inde- California Legislature; the Bureau of Indian tribal clients of the above proposed bill. The pendence Indian Community asked the Coun- Affairs and the Bureau of Land Management. Barona Band of Mission Indians is the sev- ty to reiterate its support for the California enth Californian tribe that would benefit Indian Land Transfer Act, and explained the HOUSE OF REPRESENTATIVES, from this bill. We are writing to you sepa- Tribe’s need for the additional land, the his- Washington, DC, June 11, 1999. rately to add our support for the bill, which tory of the land proposed for transfer, and SAN DIEGO COUNTY BOARD OF SUPERVISORS, was passed in the House in the last session, the Tribe’s plans for development and use of 1600 Pacific Hwy, Room 335, San Diego, CA. only to die from inaction in the Senate. Be- the lands; and cause Congressman Young does not want to Whereas, this Board desires to both pro- DEAR SUPERVISORS: I am writing to you re- introduce it in the House, where we expect mote economic development and enhance the garding the transferal of surplus Bureau of little or no opposition at all. quality of life within the County and be- Land Management land parcels to the As for the fear that the Barona Band might lieves that the Tribe’s proposed development Barona, Cuyapaipe and Manzanita Bands of use the land to be acquired under this bill for could play a vital role in these goals by im- Mission Indians in San Diego County. It is gaming purposes, we have two simple re- proving the economic, social and cultural my understanding that the Board of Super- sponses. First, the 5.03 acres that we would health of both the Tribe and the County; and visors will be considering a resolution to obtain is far too small and far too remote to Whereas, this Board desires to provide for support the introduction of the California In- be used for this purpose. Instead, we would the County adequate housing, jobs, economic dian Land Transfer Act (CILTA) in Congress use it for watershed, cattle grazing, and development, and recreational and cultural to authorize this transferal and I wanted to wildlife habitat. This small parcel is over a amenities through a reasonable land devel- make you aware of my continued support for mile from the nearest paved road, across opment plan that ensures the provision of this effort. fairly rough country. Second, the Barona necessary public services and facilities and I firmly believe that this transferal will Band already has a very successful gaming eliminates or mitigates any potential nega- promote tribal sovereignty while, at the enterprise on its primary reservation adja- tive impacts of such development; and same time, provide numerous benefits to our cent to a country road, and therefore does Whereas, the Tribe has notified the Board San Diego county communities. As you may not need any further gaming locations. In that it shares these same concerns about know, I voted in favor of the CILTA when it addition, the bill itself specifies that this their shared community; and passed the House of Representatives on two land is not being transferred for gaming pur- Whereas, the Board recognizes the Tribe’s separate occasions. Despite this support, poses in any event. sovereignty; and however, this legislation has failed to re- Instead of lengthening this letter by re- Whereas, the Tribe has expressed its desire ceive adequate consideration in the Senate. peating the statements presented by Mr. to the Board to work with the County in a Quesenberry on behalf of his tribal clients, It is for this reason that I was pleased to government-to-government relationship to we will just adopt them as our own, and urge learn that Senator Barbara Boxer has ex- ensure that Tribal development of the parcel you to introduce and vigorously support this pressed interest in reintroducing the CILTA proposed for transfer will provide the com- non-controversial bill on behalf of the in the 106th Congress. Taking into consider- munity with necessary housing and eco- Barona Band and other California tribes ation the numerous endorsements this effort nomic development without compromising which would benefit from it. has received in the past, coupled with the the environmental, health, safety or welfare Sincerely yours, fact that these land parcels will be used for concerns of the region; now therefore, be it CLIFFORD M. LACHAPPA, ‘‘non-gaming’’ economic and community de- Resolved by the Board of Supervisors of the Chairman. County of Inyo, State of California, that it velopment, it is my full intention to once again support this legislation when it is con- supports the California Indian Land Transfer BARONA BAND OF MISSION INDIANS, sidered by the House. Act, and the included transfer to the Fort Lakeside, CA, June 29, 1999. Independence Indian Community of the 200- Thank you for your time and allowing me Hon. BARBARA BOXER, acre parcel of Bureau of Land Management to express my thoughts on this important U.S. Senate, land which is contiguous to the existing res- issue. If you have any questions regarding Washington, DC. ervation, provided that the Fort Independ- this matter, please do not hesitate to con- DEAR SENATOR BOXER: During the 105th ence Indian Community agrees with a Memo- tact me directly, or Michael Harrison in my Congress, Congressman Don Young intro- randum of Understanding, which provides for office at (202) 255–5672. duced the California Indian Land Transfer a mutually agreeable method of dispute reso- With best wishes. Act, H.R. 2742, a bill that would transfer ap- lution, to bring its proposed development Sincerely, proximately 3,500 acres of Bureau of Land plan back to the County in order to discuss, DUNCAN HUNTER, Management (BLM) land to a number of In- on a government-to-government basis, how Member of Congress. dian tribes located in California, including

VerDate 29-OCT-99 04:41 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.136 pfrm01 PsN: S02PT1 S13682 CONGRESSIONAL RECORD — SENATE November 2, 1999 5.03 acres for the Barona Band of Mission In- California Indian Land Transfer Act, a bill 3,500 acres of Bureau of Land Management dians. Attached, please find a resolution re- that would transfer to eight California In- (BLM) land to be used for housing construc- cently adopted by the Barona Band of Mis- dian tribes a total of approximately 3,500 tion, grazing, resource protection, and non- sion Indians Tribal Council urging you to acres of Bureau of Land Management (BLM) gaming economic development. Under the sponsor similar legislation in the United land to be used for housing construction, bill’s provisions, our tribe will acquire ap- States Senate this year. grazing, resource protection, and non-gam- proximately 1,360 acres of BLM land. These As you know, since the early 1930’s, the ing economic development. Under the bill’s lands would be added to the tribal trust Barona Band has been located on approxi- provisions, our tribe will acquire approxi- lands of the Cuyapaipe Indian Reservation. mately 5,500 acres in rural eastern San Diego mately 5.03 acres of BLM land. These lands We expect to use the land for housing and County and is home to approximately 300 would be added to the tribal trust lands of non-gaming economic development. people. We came to this land after the City the Barona Indian Reservation. We expect to We sincerely appreciate your support for of San Diego bought our reservation as a res- use the land for wild land addition to the res- this important legislation. ervoir site and forced us to move. Therefore, ervation. Sincerely, the passage of this bill is very important to We sincerely appreciate your support for TONY PINTO, our history and our future. this important legislation. Tribal Chairman. As drafted, H.R. 2742 would place a number Sincerely, of restrictions on the use of the new lands. CLIFFORD M. LACHAPPA, PIT RIVER TRIBE, Perhaps most noteworthy is the provision Chairman. Burney, CA, October 6, 1999. baring the use of any such lands for gaming Re California Indian Land Transfer Act. purposes. Although as a sovereign govern- MANZANITA BAND OF MISSION INDIANS, Hon. BARBARA BOXER, ment we object to any restriction being Boulevard, CA, October 1, 1999. U.S. Senate, placed on the use of our lands, we understand Re California Indian Land Transfer Act. Washington, DC. DEAR SENATOR BOXER: On behalf of the Pit that the political nature of this bill demands Hon. BARBARA BOXER, such a restriction. U.S. Senate, River Tribe, I want to express our thanks for Finally, we are encouraged by the action Washington, DC. your agreement to introduce the California taken by the San Diego County Board when DEAR SENATOR BOXER: On behalf of the Indian Land Transfer Act, a bill that would they too adopted a resolution in support of Manzanita Band of Mission Indians, I want transfer eight California Indian tribes a total the proposed legislation. We are hopeful that to express our thanks for your agreement to of approximately 3,500 acres of Bureau of this demonstration of government unity will introduce the California Indian Land Trans- Land Management (BLM) land to be used for give you the encouragement necessary to fer Act, a bill that would transfer to eight housing construction, grazing, resource pro- carry this bill forward. California Indian Tribes a total of approxi- tection, and non-gaming economic develop- ment. Under the bill’s provisions, our tribe Sincerely, mately 3,500 acres of Bureau of Land Man- will acquire approximately 560 acres of BLM CLIFFORD M. LACHAPPA, agement (BLM) land to be used for housing land. These lands would be added to the trib- Chairman. construction, grazing, resource protection, al trust lands of the XL Ranch Indian Res- and non-gaming economic development. ervation. We expect to use the land for hous- RESOLUTION NO. 06–2299 Under the bill’s provisions, our tribe will ac- ing, grazing and other agricultural develop- quire approximately 1,000 acres of BLM land. Whereas: The Barona Band of Mission Indi- ment. ans is among the 104 Federally recognized In- These lands would be added to the tribal We sincerely appreciate your support for dian Tribes located in the State of Cali- trust lands of the Manzanita Indian Reserva- this important legislation. fornia; and, tion. We expect to use the land for non-gam- Sincerely, ing economic development. Whereas: Indian Tribes located in Cali- LAWRENCE CANTRELL, We sincerely appreciate your support for fornia retain rights to fewer than 500,000 Chairman. acres of land, seventy-five percent of which this important legislation. Sincerely, is held in Trust by the United States Govern- PIT RIVER TRIBE, ment on behalf of 14 tribes; and, LEROY J. ELLIOTT, Burney, CA, October 6, 1999. Whereas: The Federal Bureau of Land Man- Chairman. Re California Indian Land Transfer Act. agement (BLM) is considering large scale Hon. BARBARA BOXER, transfers of trust lands to local governments PALA BAND OF MISSION INDIANS, U.S. Senate, in California, and to the State of California; Pala, CA, October 1, 1999. Washington, DC. and, Re California Indian Land Transfer Act. DEAR SENATOR BOXER: On behalf of the Pit Whereas: The Federal Bureau of Land Man- Hon. BARBARA BOXER, River Tribe, I want to express our thanks for agement (BLM) is considering large scale U.S. Senate, your agreement to introduce the California transfers of trust lands to local governments Washington, DC. Indian Land Transfer Act, a bill that would in California, and to the State of California; DEAR SENATOR BOXER: On behalf of the transfer eight California Indian tribes a total and, Pala Band of Mission Indians, I want to ex- of approximately 3,500 acres of Bureau of Whereas: California Indian Legal Services press our thanks for your agreement to in- Land Management (BLM) land to be used for has been working diligently over the past troduce the California Indian Land Transfer housing construction, grazing, resource pro- three years to secure passage of Federal Leg- Act, a bill that would transfer to eight Cali- tection, and non-gaming economic develop- islation to transfer approximately 3,600 acres fornia Indian tribes a total of approximately ment. Under the bill’s provisions, our tribe of BLM trust land to 10 specific tribes; and, 3,500 acres of Bureau of Land Management will acquire approximately 560 acres of BLM Whereas: The Elected leaders of California (BLM) land to be used for housing construc- land. These lands would be added to the trib- have a unique responsibility to help Cali- tion, grazing, resource protection, and non- al trust lands of the XL Ranch Indian Res- fornia tribes address the issue of securing ad- gaming economic development. Under the ervation. We expect to use the land for hous- ditional lands so that tribes may develop bill’s provisions, our tribe will acquire ap- ing, grazing and other agricultural develop- stronger economies; and, proximately 60 acres of BLM land. These ment. Whereas: On June 15th, the San Diego lands would be added to the tribal trust We sincerely appreciate your support for county Board of Supervisors unanimously lands of the Pala Indian Reservation. We ex- this important legislation. voted to support this transfer of land; and, pect to use the land for wildland addition to Sincerely, be it therefore the reservation. ARNOLD WILKES, Resolved: That the Barona Band of Mission We sincerely appreciate your support for Vice-Chairman. Indians urges Senator Barbara Boxer and this important legislation. Senator Dianne Feinstein to sponsor legisla- Sincerely, FORT BIDWELL INDIAN tion to transfer such lands as identified by ROBERT H. SMITH, COMMUNITY COUNCIL, the California Indian Legal Services from Tribal Chairman. Fort Bidwell, CA, October 6, 1999. the BLM to benefit California tribes and Re California Indian Land Transfer Act. work for the passage of such legislation. EWIIAAPAAYP TRIBAL OFFICE, Hon. BARBARA BOXER, Alpine, CA, October 4, 1999. U.S. Senate, BARONA BAND OF MISSION INDIANS, Re California Indian Land Transfer Act. Washington, DC. Lakeside, CA, October 14, 1999. Hon. BARBARA BOXER, DEAR SENATOR BOXER: On behalf of the Re California Indian Land Transfer Act. U.S. Senate, Fort Bidwell Indian Community, I want to Hon. BARBARA BOXER, Washington, DC. express our thanks for your agreement to in- U.S. Senate, DEAR SENATOR BOXER: On behalf of the troduce the California Indian Land Transfer Washington, DC. Cuyapaipe Band of Mission Indians, I want to Act, a bill that would transfer eight Cali- DEAR SENATOR BOXER: On behalf of the express our thanks for your agreement to in- fornia Indian tribes a total of approximately Baraona Group of the Capitan Grande Band troduce the California Indian Land Transfer 3,500 acres of Bureau of Land Management of Mission Indians, I want to express our Act, a bill that would transfer to eight Cali- (BLM) land to be used for housing construc- thanks for your agreement to introduce the fornia Indian tribes a total of approximately tion, grazing, resource protection, and non-

VerDate 29-OCT-99 04:41 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.139 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13683 gaming economic development. Under the American Medical Association found (Mr. WELLSTONE) was added as a co- bill’s provisions, our tribe will acquire ap- that ‘‘alcohol and illicit drug use ap- sponsor of S. 345, a bill to amend the proximately 300 acres of BLM land. These pear to be associated with an increased Animal Welfare Act to remove the lim- lands will be added to the tribal trust lands of the Fort Bidwell Indian Reservation. We risk of violent death.’’ And as the two itation that permits interstate move- expect to use the land for housing and graz- stories I want to share today illustrate, ment of live birds, for the purpose of ing. alcohol is also associated with an in- fighting, to States in which animal We sincerely appreciate your support for creased risk of serious injury. fighting is lawful. this important legislation. The first story is about a woman by S. 386 Sincerely, the name of Deborah Kitchen. She is a At the request of Mr. GORTON, the DENISE POLLARD, quadriplegic, and she got that way be- Acting Chairpeson. name of the Senator from New York cause her ex-boyfriend shot her. (Mr. SCHUMER) was added as a cospon- On the day of the shooting, Deborah’s MORONGO BAND OF MISSION INDIANS, sor of S. 386, a bill to amend the Inter- Banning, CA, October 25, 1999. boyfriend, Thomas Knapp, consumed— nal Revenue Code of 1986 to provide for Hon. BARBARA BOXER, by his own estimate—a fifth of whiskey tax-exempt bond financing of certain U.S. Senate, and a case of beer. He went to K-Mart electric facilities. Washington, DC. in Florida to buy a .22-caliber rifle and S. 486 DEAR SENATOR BOXER: The purpose of this a box of bullets. Mr. Knapp was so in- At the request of Mr. HATCH, the letter is to request that you sponsor and in- toxicated that the clerk had to help troduce legislation to transfer certain par- names of the Senator from Iowa (Mr. him fill out the federal form required cels of land from the Bureau of Land Man- HARKIN) and the Senator from Wash- to purchase the gun. But he was still agement to various California Indian Tribes. ington (Mr. GORTON) were added as co- able to buy the rifle. It is our understanding that your staff has sponsors of S. 486, a bill to provide for Mr. Knapp then took that rifle, shot been working on this matter with Tribes and the punishment of methoamphetamine their representatives. his ex-girlfriend Deborah Kitchen, and laboratory operators, provide addi- As you are aware, this proposed legislation left her a quadriplegic. is similar to legislation that was previously The second story is from Michigan. It tional resources to combat enacted transferring other Bureau of Land involves an 18-year-old named Walter methoamphetamine production, traf- Management land to California Indian McKay, who had engaged in a day-long ficking, and abuse in the United Tribes. States, and for other purposes. We appreciate your efforts in this area, as drinking spree and then went and S. 512 well as your support of the Tribes in Cali- bought ammunition for his shotgun. He fornia on the range of legislative issues and was so intoxicated that he could not At the request of Mr. GORTON, the challenges that native Americans face. remember whether it was a man or name of the Senator from Oklahoma Sincerely yours, woman who sold him the ammunition (Mr. INHOFE) was added as a cosponsor MARY ANN MARTIN ANDREAS, and could not identify what he pur- of S. 512, a bill to amend the Public Chairperson. chased. Health Service Act to provide for the expansion, intensification, and coordi- By Mrs. BOXER (for herself and He took those shotgun shells, loaded nation of the activities of the Depart- Mr. LAUTENBERG): his gun, and intended to shoot out the S. 1845. A bill to amend title 18, back window of an acquaintance’s ment of Health and Human Services United States Code, to prohibit the truck. He was intoxicated. The shot with respect to research on autism. sale or transfer of a firearm or ammu- missed, ricocheted off the wheel of the S. 600 nition to an intoxicated person; to the truck, and hit Anthony Buczkowski. At the request of Mr. WELLSTONE, the Committee on the Judiciary. Mr. Buczkowski had to have a finger name of the Senator from Virginia (Mr. GUN SALES TO INTOXICATED PERSONS amputated and his left wrist surgically ROBB) was added as a cosponsor of S. ∑ Mrs. BOXER. Mr. President, last fused. 600, a bill to combat the crime of inter- July, when the Senate considered the Mr. Knapp and Mr. McKay could buy national trafficking and to protect the Commerce-Justice-State appropria- a gun and ammunition because it is rights of victims. tions bill, I offered an amendment to not—I repeat, not—against the law to S. 664 prohibit the sale of guns to people who sell a gun or ammunition to someone At the request of Mrs. BOXER, her were intoxicated. who is intoxicated. name was added as a cosponsor of S. State and local laws prohibit intoxi- Mr. President, as I mentioned earlier, 664, a bill to amend the Internal Rev- cated people from operating a car, a states and localities have all sorts of enue Code of 1986 to provide a credit boat, a snowmobile, a plane, an all-ter- laws prohibiting people who are intoxi- against income tax to individuals who rain vehicle, or a bicycle. There is even cated from doing certain things. But, I rehabilitate historic homes or who are one state law that prohibits an intoxi- am unaware of a single state law that the first purchasers of rehabilitated cated person from getting a tattoo. In prohibits someone who is drunk from historic homes for use as a principal addition, federal law prohibits an in- buying a gun or ammunition. residence. It would be nice if states would act. toxicated person from enlisting in the S. 941 But, gun sales are largely regulated at military. And, federal gun laws pro- At the request of Mr. WYDEN, the hibit the sale of a gun to a drug user. the federal level and involve federal li- censes and federal forms. This is a fed- name of the Senator from Indiana (Mr. My amendment simply built on this BAYH) was added as a cosponsor of S. record. All it said is that if you are in- eral responsibility, and there should be a federal law that stops this outrage. 941, a bill to amend the Public Health toxicated, you cannot buy a gun or am- Service Act to provide for a public re- munition. To me, it just makes com- That is what my bill does. If you are intoxicated, you would not be able to sponse to the public health crisis of mon sense that someone who is drunk pain, and for other purposes. should not be able to buy a gun. And, buy a gun or ammunition. It is very S. 964 the Senate agreed because my amend- reasonable, and it will save lives.∑ At the request of Mr. DASCHLE, the ment was passed unanimously. f name of the Senator from New Mexico Unfortunately, Mr. President, the ADDITIONAL COSPONSORS conference committee dropped this (Mr. BINGAMAN) was added as a cospon- provision from the bill. I am extremely S. 59 sor of S. 964, a bill to provide for equi- disappointed that such a common-sense At the request of Mr. THOMPSON, the table compensation for the Cheyenne proposal would be abandoned by the name of the Senator from Delaware River Sioux Tribe, and for other pur- Senate leadership. (Mr. ROTH) was added as a cosponsor of poses. So, today, I am introducing—along S. 59, a bill to provide Government- S. 1053 with my colleague, Senator LAUTEN- wide accounting of regulatory costs At the request of Mr. BOND, the name BERG—this very reasonable proposal as and benefits, and for other purposes. of the Senator from Kentucky (Mr. a free-standing bill. S. 345 BUNNING) was added as a cosponsor of Mr. President, guns and alcohol do At the request of Mr. ALLARD, the S. 1053, a bill to amend the Clean Air not mix. A 1997 study in the Journal of name of the Senator from Minnesota Act to incorporate certain provisions

VerDate 29-OCT-99 04:51 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.141 pfrm01 PsN: S02PT1 S13684 CONGRESSIONAL RECORD — SENATE November 2, 1999 of the transportation conformity regu- tain nationals of El Salvador, Guate- from Nebraska (Mr. KERREY), and the lations, as in effect on March 1, 1999. mala, Honduras, and Haiti an oppor- Senator from Pennsylvania (Mr. SPEC- S. 1109 tunity to apply for adjustment of sta- TER) were added as cosponsors of Sen- At the request of Mr. MCCONNELL, tus under that Act, and for other pur- ate Resolution 196, a resolution com- the name of the Senator from Min- poses. mending the submarine force of the nesota (Mr. WELLSTONE) was added as a S. 1680 United States Navy on the 100th anni- cosponsor of S. 1109, a bill to conserve At the request of Mr. ASHCROFT, the versary of the force. global bear populations by prohibiting name of the Senator from Colorado SENATE RESOLUTION 204 the importation, exportation, and (Mr. ALLARD) was added as a cosponsor At the request of Mr. HATCH, the interstate trade of bear viscera and of S. 1680, a bill to provide for the im- name of the Senator from Illinois (Mr. items, products, or substances con- provement of the processing of claims FITZGERALD) was added as a cosponsor taining, or labeled or advertised as con- for veterans compensation and pen- of Senate Resolution 204, a resolution taining, bear viscera, and for other pur- sions, and for other purposes. designating the week beginning No- poses. S. 1760 vember 21, 1999, and the week begin- S. 1187 At the request of Mr. BIDEN, the ning on November 19, 2000, as ‘‘National At the request of Mr. DORGAN, the name of the Senator from California Family Week’’, and for other purposes. names of the Senator from Ohio (Mr. (Mrs. FEINSTEIN) was added as a co- AMENDMENT NO. 2319 DEWINE), the Senator from North Caro- sponsor of S. 1760, a bill to provide reli- At the request of Mr. ROBB his name lina (Mr. HELMS), the Senator from able officers, technology, education, was added as a cosponsor of amend- New Mexico (Mr. DOMENICI), the Sen- community prosecutors, and training ment No. 2319 proposed to S. 1692, a bill ator from Alaska (Mr. MURKOWSKI), the in our neighborhoods. to amend title 18, United States Code, Senator from Michigan (Mr. ABRAHAM), S. 1798 to ban partial birth abortions. the Senator from Kentucky (Mr. At the request of Mr. HATCH, the AMENDMENT NO. 2408 MCCONNELL), the Senator from Wyo- name of the Senator from New Mexico At the request of Mr. FEINGOLD the ming (Mr. ENZI), the Senator from New (Mr. BINGAMAN) was added as a cospon- name of the Senator from Illinois (Mr. York (Mr. MOYNIHAN), the Senator sor of S. 1798, a bill to amend title 35, DURBIN) was added as a cosponsor of from Minnesota (Mr. GRAMS), and the United States Code, to provide en- amendment No. 2408 intended to be pro- Senator from South Carolina (Mr. hanced protection for investors and posed to H.R. 434, a bill to authorize a THURMOND) were added as cosponsors of innovators, protect patent terms, re- new trade and investment policy for S. 1187, a bill to require the Secretary duce patent litigation, and for other sub-Sahara Africa. of the Treasury to mint coins in com- purposes. f memoration of the bicentennial of the S. 1823 SENATE CONCURRENT RESOLU- Lewis and Clark Expedition, and for At the request of Mr. DEWINE, the TION 65—EXPRESSING THE other purposes. name of the Senator from Minnesota SENSE OF CONGRESS REGARD- S. 1244 (Mr. WELLSTONE) was added as a co- ING THE PRESERVATION OF At the request of Mr. THOMPSON, the sponsor of S. 1823, a bill to revise and FULL AND OPEN COMPETITION name of the Senator from Delaware extend the Safe and Drug-Free Schools FOR CONTRACTS FOR THE (Mr. ROTH) was added as a cosponsor of and Communities Act of 1994. TRANSPORTATION OF UNITED S. 1244, a bill to establish a 3-year pilot SENATE CONCURRENT RESOLUTION 61 STATES MILITARY CARGO BE- project for the General Accounting Of- At the request of Mr. SESSIONS, the TWEEN THE UNITED STATES fice to report to Congress on economi- name of the Senator from Wyoming AND THE REPUBLIC OF ICELAND cally significant rules of Federal agen- (Mr. ENZI) was added as a cosponsor of Mr. TORRICELLI submitted the fol- cies, and for other purposes. Senate Concurrent Resolution 61, a lowing concurrent resolution; which S. 1317 concurrent resolution expressing the was referred to the Committee on Com- At the request of Mr. AKAKA, the sense of the Congress regarding a con- merce, Science, and Transportation: name of the Senator from South Da- tinued United States security presence S. CON. RES. 65 kota (Mr. DASCHLE) was added as a co- in Panama and a review of the contract Whereas the Treaty Between the United sponsor of S. 1317, a bill to reauthorize bidding process for the Balboa and States of America and the Republic of Ice- the Welfare-To-Work program to pro- Cristobal port facilities on each end of land to Facilitate Their Defense Relation- vide additional resources and flexi- the Panama Canal. ship and Related Memorandum of Under- bility to improve the administration of SENATE CONCURRENT RESOLUTION 63 standing in Implementation of the Treaty, signed September 24, 1986, provides for full the program. At the request of Mr. ABRAHAM, the and open competition among United States- S. 1400 name of the Senator from California flag carriers and Icelandic shipping compa- At the request of Mrs. BOXER, the (Mrs. FEINSTEIN) was added as a co- nies for the transportation of United States name of the Senator from Massachu- sponsor of Senate Concurrent Resolu- military cargo between the United States setts (Mr. KERRY) was added as a co- tion 63, a concurrent resolution con- and Iceland: Now, therefore, be it sponsor of S. 1400, A bill to protect demning the assassination of Armenian Resolved by the Senate (the House of Rep- women’s reproductive health and con- Prime Minister Vazgen Sargsian and resentatives concurring), That it is the sense stitutional right to choice, and for other officials of the Armenian Govern- of Congress that— other purposes. (1) the President should ensure that full ment and expressing the sense of the and open competition continues in the selec- S. 1528 Congress in mourning this tragic loss tion of companies to transport United States At the request of Mr. LOTT, the name of the duly elected leadership of Arme- military cargo between the United States of the Senator from Kansas (Mr. nia. and Iceland in accordance with the Treaty BROWNBACK) was added as a cosponsor SENATE RESOLUTION 118 Between the United States of America and of S. 1528, a bill to amend the Com- At the request of Mr. REID, the name the Republic of Iceland to Facilitate Their prehensive Environmental Response, of the Senator from Delaware (Mr. Defense Relationship and Related Memo- randum of Understanding in Implementation Compensation, and Liability Act of BIDEN) was added as a cosponsor of of the Treaty, signed September 24, 1986; and 1980 to clarify liability under that Act Senate Resolution 118, a resolution des- (2) to preserve that competition, neither for certain recycling transactions. ignating December 12, 1999, as ‘‘Na- the Secretary of State nor any other official S. 1592 tional Children’s Memorial Day.’’ of the United States should, without the ad- At the request of Mr. DURBIN, the SENATE RESOLUTION 196 vice and consent of the Senate, seek to amend, interpret, or alter the administration name of the Senator from Massachu- At the request of Mr. WARNER, the of the treaty or memorandum of under- setts (Mr. KERRY) was added as a co- names of the Senator from Mississippi standing in any manner (through limitations sponsor of S. 1592, a bill to amend the (Mr. LOTT), the Senator from Missouri on eligibility or otherwise) that— Nicaraguan Adjustment and Central (Mr. BOND), the Senator from North (A) would preclude companies qualified to American Relief Act to provide to cer- Carolina (Mr. HELMS), the Senator conduct business under the laws of the

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.104 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13685 conduct business under the laws of the District of Columbia will be observed in the SENATE RESOLUTION 216—DESIG- United States or the Republic of Iceland year 2000; NATING THE MONTH OF NOVEM- from submitting offers for, being awarded, or Whereas November 17, 2000, will mark the BER 1999 AS ‘‘NATIONAL AMER- performing a contract for the transportation bicentennial of the occupation of the United ICAN INDIAN HERITAGE MONTH’’ of United States military cargo under the States Capitol by the Senate and the House treaty or memorandum of understanding; or of Representatives; and Mr. CAMPBELL (for himself, Mr. (B) would otherwise defeat the purpose of Whereas the story of the design and con- INOUYE, Mr. COCHRAN, Mr. GRASSLEY, enhancing competition among United struction of the United States Capitol de- Mrs. MURRAY, Mr. BINGAMAN, Mr. States-flag carriers or among Icelandic ship- serves wider attention: Now, therefore, be it DOMENICI, Mr. SMITH of Oregon, Mr. ping companies under the treaty or memo- Resolved by the Senate (the House of Rep- AKAKA, Mr. CONRAD, Mrs. BOXER, Mr. randum of understanding. resentatives concurring), HATCH, Mr. JOHNSON, Mr. KOHL, Mr. f SECTION 1. PRINTING OF ‘‘THE UNITED STATES INHOFE, Mr. REID, Mr. ENZI, Mr. CAPITOL: A CHRONICLE OF CON- MCCAIN, Mr. MURKOWSKI, Mr. THOMAS, SENATE CONCURRENT RESOLU- STRUCTION, DESIGN, AND POLI- TION 66—TO AUTHORIZE THE TICS’’. Mr. BURNS, Mr. GRAMS, Mr. DASCHLE, PRINTING OF ‘‘CAPITOL BUILD- (a) IN GENERAL.—There shall be printed as Mr. BENNETT, Mr. ALLARD, Mr. STE- ER: THE SHORTHAND JOURNALS a Senate document the book entitled ‘‘The VENS, Mr. CRAPO, Mr. WYDEN, Mr. OF CAPTAIN MONTGOMERY C. United States Capitol: A Chronicle of Con- FRIST, Mr. JEFFORDS, and Mr. KEN- MEIGS, 1853–1861’’ struction, Design, and Politics’’, prepared by NEDY) submitted the following resolu- the Architect of the Capitol. tion; which was referred to the Com- Mr. LOTT (for himself and Mr. (b) SPECIFICATIONS.—The Senate document mittee on the Judiciary: DASCHLE) submitted the following con- described in subsection (a) shall include il- S. RES. 216 current resolution; which was consid- lustrations and shall be in the style, form, ered and agreed to: Whereas American Indians and Alaska Na- manner, and binding as directed by the Joint tives were the original inhabitants of the S. CON. RES. 66 Committee on Printing after consultation land that now constitutes the United States; Whereas November 17, 2000, will mark the with the Secretary of the Senate. Whereas American Indian tribal govern- 200th anniversary of the occupation of the (c) NUMBER OF COPIES.—In addition to the ments developed the fundamental principles United States Capitol by the Senate and usual number of copies, there shall be print- of freedom of speech and separation of pow- House of Representatives; ed with suitable binding the lesser of— ers that form the foundation of the United Whereas the story of the design and con- (1) 6,500 copies for the use of the Senate, States Government; struction of the United States Capitol de- the House of Representatives, and the Archi- Whereas American Indians and Alaska Na- serves wider attention; and tect of the Capitol, to be allocated as deter- tives have traditionally exhibited a respect Whereas since 1991, Congress has supported mined by the Secretary of the Senate; or for the finiteness of natural resources a recently completed project to translate the (2) a number of copies that does not have a through a reverence for the earth; previously inaccessible and richly detailed total production and printing cost of more Whereas American Indians and Alaska Na- shorthand journals of Captain Montgomery than $143,000. tives have served with valor in all of Amer- C. Meigs, the mid-nineteenth-century engi- ica’s wars beginning with the Revolutionary neer responsible for construction of the Cap- f War through the conflict in the Persian Gulf, itol dome and Senate and House of Rep- and often the percentage of American Indi- resentatives extensions: Now, therefore, be it ans who served exceeded significantly the Resolved by the Senate (the House of Rep- SENATE RESOLUTION 214—AU- percentage of American Indians in the popu- resentatives concurring), THORIZING THE TAKING OF PHO- lation of the United States as a whole; SECTION 1. PRINTING OF ‘‘CAPITOL BUILDER: TOGRAPHS IN THE CHAMBER OF Whereas American Indians and Alaska Na- THE SHORTHAND JOURNALS OF THE UNITED STATES SENATE tives have made distinct and important con- CAPTAIN MONTGOMERY C. MEIGS, tributions to the United States and the rest 1853–1861’’. Mr. LOTT (for himself and Mr. of the world in many fields, including agri- (a) IN GENERAL.—There shall be printed as DASCHLE) submitted the following reso- culture, medicine, music, language, and art; a Senate document the book entitled ‘‘Cap- lution; which was considered and Whereas American Indians and Alaska Na- itol Builder: The Shorthand Journals of Cap- tives deserve to be recognized for their indi- tain Montgomery C. Meigs, 1853–1861’’, pre- agreed to: vidual contributions to the United States as pared under the direction of the Secretary of S. RES. 214 local and national leaders, artists, athletes, the Senate, in consultation with the Clerk of Resolved, That paragraph 1 of rule IV of the and scholars; Whereas this recognition will encourage the House of Representatives and the Archi- Rules for the Regulation of the Senate Wing self-esteem, pride, and self-awareness in tect of the Capitol. of the United States Capitol (prohibiting the (b) SPECIFICATIONS.—The Senate document American Indians and Alaska Natives of all taking of pictures in the Senate Chamber) be described in subsection (a) shall include il- ages; and lustrations and shall be in the style, form, temporarily suspended for the sole and spe- Whereas November is a time when many manner, and binding as directed by the Joint cific purpose of permitting photographs to be Americans commemorate a special time in Committee on Printing after consultation taken between the first and second sessions the history of the United States when Amer- with the Secretary of the Senate. of the 106th Congress in order to allow the ican Indians and English settlers celebrated (c) NUMBER OF COPIES.—In addition to the Senate Commission on Art to carry out its the bounty of their harvest and the promise usual number of copies, there shall be print- responsibilities to publish a Senate docu- of new kinships: Now, therefore, be it ed with suitable binding the lesser of— ment containing works of art, historical ob- Resolved, That the Senate designates No- (1) 1,500 copies for the use of the Senate, jects, and exhibits within the Senate Wing. vember 1999 as ‘‘National American Indian the House of Representatives, and the Archi- SEC. 2. The Sergeant at Arms of the Senate Heritage Month’’ and requests that the tect of the Capitol, to be allocated as deter- is authorized and directed to make the nec- President issue a proclamation calling on mined by the Secretary of the Senate and essary arrangements to carry out this reso- the Federal Government and State and local the Clerk of the House of Representatives; or lution. governments, interested groups and organi- (2) a number of copies that does not have a zations, and the people of the United States total production and printing cost of more f to observe the month with appropriate pro- than $31,500. grams, ceremonies, and activities. Mr. CAMPBELL. Mr. President, I am f SENATE RESOLUTION 215—MAKING pleased to submit today, along with CHANGES TO SENATE COMMIT- SENATE CONCONCURRENT RESO- the Vice Chairman of the Indian Af- LUTION 67—TO AUTHORIZE THE TEES FOR THE 106TH CONGRESS fairs Committee, Senator INOUYE and PRINTING OF ‘‘THE UNITED Mr. LOTT submitted the following many of our colleagues, a Senate reso- STATES CAPITOL’’ A CHRONICLE resolution; which was considered and lution that designates the month of OF CONSTRUCTION, DESIGN, AND agreed to: November 1999, as ‘National American POLITICS’’ S. RES. 215 Indian Heritage Month.’ Mr. LOTT (for himself, and Mr. I feel it is appropriate and deserving Resolved, That the following change shall DASCHLE) submitted the following con- to honor American Indians and Alaska be effective on those Senate committees list- current resolution; which was consid- ed below for the 106th Congress, or until Natives, as the original inhabitants of ered and agreed to: their successors are appointed: the land that now constitutes the S. CON. RES. 67 Committee on Environment and Public United States, with this November des- Whereas the 200th anniversary of the es- Works: Mr. Smith of New Hampshire, Chair- ignation as Congress has done for al- tablishment of the seat of government in the man. most a decade.

VerDate 29-OCT-99 04:36 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.108 pfrm01 PsN: S02PT1 S13686 CONGRESSIONAL RECORD — SENATE November 2, 1999 American Indians and Alaska Natives place in America for Native people for SENATE RESOLUTION 217—RELAT- have left an indelible imprint on many generations to come. I ask for the sup- ING TO THE FREEDOM OF BE- aspects of our everyday life that most port of my colleagues on both sides of LIEF, EXPRESSION, AND ASSO- Americans often take for granted. The the aisle for this resolution, and urge CIATION IN THE PEOPLE’S RE- arts, education, science, medicine, in- the Senate to pass this important mat- PUBLIC OF CHINA dustry, and government are areas that ter. have been influenced by American In- Mr. HUTCHINSON submitted the fol- dian and Alaska Native people over the Mr. SMITH of Oregon. Mr. President, lowing resolution; which was referred last 500 years. Many of the healing I want to pay tribute to and recognize to the Committee on Foreign Rela- remedies that we use today were ob- the contributions Native Americans tions: tained from practices already in use by and Indian tribes have made in the S. RES. 217 Indian people and are still utilized United States and in particular in the today in conjunction with western Whereas the United Nations Universal Dec- State of Oregon. Native Americans laration of Human Rights and the Inter- medicine. have a unique and important relation- national Covenant on Civil and Political Mr. President, many of the basic ship with the United States, and Indian Rights affirm the freedoms of thought, con- principles of democracy in our Con- tribes continue to persevere in uphold- science, religion, expression, and assembly stitution can be traced to practices and ing their sovereign governments, as fundamental human rights belonging to customs already in use by American all people; Indian tribal governments including economies, culture and heritage. I am Whereas the United Nations Universal Dec- the doctrines of freedom of speech and pleased to join Senators CAMPBELL and laration of Human Rights is a common separation of powers. Our Founding Fa- INOUYE in submitting this resolution to standard of achievement for all peoples and thers benefited greatly from the exam- designate this month as American In- all nations, including the People’s Republic ple of the Indian tribes in the early dian Heritage Month, and I appreciate of China, a member of the United Nations; Whereas the People’s Republic of China has stages of our Nation. their efforts on behalf of all Native signed the International Covenant on Civil The respect of Native people for the Americans. and Political Rights but has yet to ratify the preservation of natural resources, rev- There are nine federally recognized treaty and thereby make it legally binding; erence for elders, and adherence to tra- tribes in the State of Oregon. Each of Whereas the Constitution of the People’s dition, mirrors our own values which Republic of China provides for the freedom of we developed in part, through the con- these tribes has successfully collabo- religious belief and the freedom not to be- tact with American Indians and Alaska rated with State and Federal agencies lieve; Natives. These values and customs are and continues to develop active part- Whereas according to the Department of deeply rooted, strongly embraced and nerships with the surrounding commu- State and international human rights orga- thrive with generation after generation nities. nizations, the Government of the People’s Republic of China does not provide these of Native people. Five of Oregon’s tribes are located in freedoms but continues to restrict unregis- From the difficult days of Valley Western Oregon: The Confederated tered religious activities and persecutes per- Forge through our peace keeping ef- Tribes of Grand Ronde, the Confed- sons on the basis of their religious practice forts around the world today, Amer- through measures including harassment, ican Indian and Alaska Native people erated Tribes of Siletz, the Confed- prolonged detention, physical abuse, incar- have proudly served and dedicated erated Tribes of the Coos, Lower Ump- ceration, and police closure of places of wor- their lives in the military readiness qua, and Siuslaw, Coquille Indian ship; and defense of our country in wartime Tribe, and the Cow Creek Band of Ump- Whereas under the International Religious and in peace. In fact, their participa- quas. Each of the tribes has made its Freedom Act, the Secretary of State has des- tion rate in the Armed Forces far out- ignated the People’s Republic of China as a own extraordinary contribution in Or- country of special concern; strips the rates of all other groups in egon and the Pacific Northwest region. Whereas the Government of the People’s this Nation. Many American Indian The five tribes of Western Oregon have Republic of China has issued a decree declar- men and women gave their lives self- been successful in recent years in re- ing a wide range of activities illegal and sub- lessly in the defense of this Nation storing their Federal recognition as In- ject to prosecution, including distribution of Falun Gong materials, gatherings or silent even before they were granted Amer- dian tribes, and they continue to work ican citizenship in 1924. sit-ins, marches or demonstrations, and to stabilize and revitalize their social, Many of the words in our language other activities to promote Falun Gong and have been borrowed from Native lan- cultural, and economic ties with the has begun the trials of several Falun Gong guages, including many of the names of State and local communities. practitioners; Whereas the National People’s Congress of the rivers, cities, and States across our There are four tribes located east of the People’s Republic of China on October 30, Nation. Indian arts and crafts have Oregon’s Cascade Mountains. The Con- 1999, adopted a new law banning and crim- also made a distinct impression on our federated Tribes of the Umatilla Res- inalizing groups labeled by the Government heritage. ervation, in Easter Oregon, have been of the People’s Republic of China as cults; It is my hope that by designating the successful in their conservation and and Whereas the Government of the People’s month of November 1999, as ‘‘National restoration of salmon and water back American Indian Heritage Month,’’ we Republic of China has officially labeled the into the Umatilla River. The Confed- will continue to encourage self-esteem, Falun Gong meditation group a cult and has formally charged at least four members of pride, and self awareness amongst erated Tribes of Warm Springs, in Cen- tral Oregon, with their Kah-Nee-Ta Re- the Falun Gong under this new law: Now, American Indians and Alaska Natives therefore, be it of all ages. Many schools, organiza- sort, have been making significant con- tions, Federal, State, Tribal and local tributions to Oregon’s tourism indus- Resolved, That the Senate calls on the Gov- ernment of the People’s Republic of China governments can also plan activities try. The Burns Paiute and Klamath Tribes have renewed a foothold in the to— and programs to celebrate the achieve- (1) release all prisoners of conscience and ments of American Indians and Alaska local economy. put an immediate end to the harassment, de- Natives. Mr. President, I commend the con- tention, physical abuse, and imprisonment of November is a special time in the his- tributions Native American people Chinese citizens exercising their legitimate tory of the United States; we celebrate rights to free belief, expression, and associa- have brought to my State and this na- the Thanksgiving holiday by remem- tion; and bering the American Indians and tion. American Indian Heritage Month (2) demonstrate its willingness to abide by English settlers as they enjoyed the is an important recognition to the ac- internationally accepted norms of freedom of bounty of their harvest and the prom- complishments and contributions of belief, expression, and association by repeal- Native Americans in our country. I ing or amending laws and decrees that re- ise of new kinships. By recognizing the strict those freedoms and proceeding many Native contributions to the arts, urge my colleagues to join us in sup- promptly to ratify and implement the Inter- governance, and culture of our Nation, port of this resolution and I look for- national Covenant on Civil and Political we will honor their past and ensure a ward to its prompt consideration. Rights.

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.110 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13687 AMENDMENTS SUBMITTED (l) EXCEPTION.—This section shall not tion Act of 1979 has repeatedly provided sup- apply to Cuba until the President reports to port for acts of international terrorism shall Congress that the Government of Cuba— be made pursuant to a specific license. AFRICAN GROWTH AND (1) has held free and fair elections con- OPPORTUNITY ACT ducted under internationally recognized ob- AMENDMENT NO. 2435 servers; At the appropriate place in the bill, insert (2) has permitted opposition parties ample the following: BINGAMAN AMENDMENT NO. 2431 time to organize and campaign for such elec- SEC. ll. The commercial export of tions, and has permitted full access to the agricultrual commodities or medicine to a (Ordered to lie on the table.) media to all candidates in the elections; country the government of which on June 1, Mr. BINGAMAN submitted an (3) is showing respect for the basic civil 1999, had been determined by the Secretary amendment intended to be proposed by liberties and human rights of the citizens of of State to have repeatedly provided support him to the bill (H.R. 434) to authorize a Cuba; for acts of international terrorism under sec- new trade and investment policy for (4) is moving toward establishing a free tion 620A of the Foreign Assistance Act of sub-Sahara Africa; as follows: market economic system; and 1961 (22 U.S.C. 2371) shall only be made— At the appropriate place, insert the fol- (5) has committed itself to constitutional (1) pursuant to a specific license for each lowing new section: change that would ensure regular free and transaction issued by the United States Gov- SEC. ll. REPORT. fair elections. ernment; (a) IN GENERAL.—Not later than 9 months (2) to nongovernmental organizations or after the date of enactment of this section, AMENDMENT NO. 2433 entities, or parastatal organizations, if such the Comptroller General of the United States At the end of the amendment, add the fol- organizations or entities are not associated shall submit a report to Congress regarding lowing new section: in any way with a coercive body of a govern- the efficiency and effectiveness of Federal SEC. ll. (a) TREATMENT OF SALES IF CUBA ment; and and State coordination of unemployment IS ON THE LIST OF TERRORIST STATES.—At (3) subject to notification of the appro- and retraining activities associated with the any time during which Cuba has been deter- priate congressional committees in accord- following programs and legislation: mined by the Secretary of State to have re- ance with the procedures applicable to re- (1) trade adjustment assistance (including peatedly provided support for acts of inter- programming notifications under section NAFTA trade adjustment assistance) pro- national terrorism under section 620A of the 634A of the Foreign Assistance Act of 1961 (22 vided for under title II of the Trade Act of Foreign Assistance Act of 1961 (22 U.S.C. U.S.C. 2394–1). 1974; 2371), commercial sales of food and medicine (2) the Job Training Partnership Act; to Cuba shall only be made pursuant to a AMENDMENT NO. 2436 (3) the Workforce Investment Act; and specific license for each transaction issued At the end of the amendment, add the fol- (4) unemployment insurance. by the United States Government. lowing new section: (b) PERIOD COVERED.—The report shall (b) PREVENTION OF TORTURE AND PRO- SEC. ll. LIMITATION ON COMMERCIAL SALES cover the activities involved in the programs LIFERATION OF CHEMICAL OR BIOLOGICAL OF FOOD AND MEDICINE. and legislation listed in subsection (a) from WEAPONS.—Nothing in subsection (a) shall be (a) TREATMENT OF SALES IF COUNTRY IS ON January 1, 1994 to December 31, 1999. construed as authorizing the sale or transfer THE LIST OF TERRORIST STATES.—At any (c) DATA AND RECOMMENDATIONS.—The re- of equipment, medicines, or medical supplies time during which a country has been deter- port shall at a minimum include specific that could be used for purposes of torture or mined by the Secretary of State to have re- data and recommendations regarding— human rights abuses or in the development peatedly provided support for acts of inter- (1) the compatibility of program require- of chemical or biological weapons. national terrorism under section 620A of the ments related to the employment and re- (c) DONATION OF FOOD AND HUMANITARIAN Foreign Assistance Act of 1961 (22 U.S.C. training of dislocated workers in the United ASSISTANCE TO THE CUBAN PEOPLE.— 2371), commercial sales of food and medicine States, with particular emphasis on the (1) IN GENERAL.—Of the amounts available to such country shall only be made pursuant trade adjustment assistance programs pro- under this Act (including agricultural com- to a specific license for each transaction vided for under title II of the Trade Act of modities), under chapter 1 of part I of the issued by the United States Government. 1974; Foreign Assistance Act of 1961 (relating to (b) PREVENTION OF TORTURE AND PRO- (2) the compatibility of application proce- development assistance), or chapter 4 of part LIFERATION OF CHEMICAL OR BIOLOGICAL dures related to the employment and re- II of that Act (relating to the economic sup- WEAPONS.—Nothing in subsection (a) shall be training of dislocated workers in the United port fund) in any fiscal year, up to $25,000,000 construed as authorizing the sale or transfer States; may be made available each fiscal year to of equipment, medicines, or medical supplies (3) the capacity of these programs to assist carry out activities under section 109(a) of that could be used for purposes of torture or workers negatively impacted by foreign the Cuban Liberty and Democratic Soli- human rights abuses or in the development trade and the transfer of production to other darity (LIBERTAD) Act of 1996 (22 U.S.C. of chemical or biological weapons. countries, measured in terms of employment 6039(a)) or to provide humanitarian assist- and wages; ance through independent nongovernmental AMENDMENT NO. 2437 (4) the capacity of these programs to assist organizations to victims of political repres- At an appropriate place, insert the fol- secondary workers negatively impacted by sion in Cuba. lowing: foreign trade and the transfer of production (2) SAFEGUARDS ON ASSISTANCE.—(A) Funds SEC. ll. EXCLUSION RELATING TO COUNTRY to other countries, measured in terms of em- made available under paragraph (1) shall be SUPPORTIVE OF INTERNATIONAL ployment and wages; subject to notification of the appropriate TERRORISM. (5) how the impact of foreign trade and the congressional committees in accordance Nothing in this Act shall be construed as transfer of production to other countries with the procedures applicable to reprogram- authorizing financing or United States Gov- would have changed the number of bene- ming notifications under section 634A of the ernment credit for commercial transactions ficiaries covered under the trade adjustment Foreign Assistance Act of 1961 (22 U.S.C. with lllllllll, which has been deter- assistance program if the trade adjustment 2394–1). mined by the Secretary of State to have re- assistance program covered secondary work- (B) Assistance may not be provided under peatedly provided support for acts of inter- ers in the United States; and this section if any assistance is likely to be national terrorism under section 620A of the (6) the effectiveness of the programs de- or is found to have been diverted to the Foreign Assistance Act of 1961 (22 U.S.C. scribed in subsection (a) in achieving reem- Cuban government, to any coercive organiza- 2371). ployment of United States workers and tion affiliated with the Cuban government, maintaining wage levels of United States or to any organization that has violated any AMENDMENT NO. 2438 workers who have been dislocated as a result law or regulation of the United States re- At the appropriate place in the bill, insert of foreign trade and the transfer of produc- garding exports to or financial transactions the following: tion to other countries. with Cuba. SEC. ll. Nothing in this Act shall be con- strued as authorizing commercial exports or TORRICELLI AMENDMENTS NOS. AMENDMENT NO. 2434 other transactions with any country that on 2432–2446 At the appropriate place, insert the fol- June 1, 1999, was determined by the Sec- (Ordered to lie on the table.) lowing: retary of State to have been a country the Mr. TORRICELLI submitted 15 SEC. ll. LICENSING REQUIREMENT FOR COUN- government of which had repeatedly pro- vided support for acts of international ter- amendments intended to be proposed TRIES SUPPORTING ACTS OF INTER- NATIONAL TERRORISM. rorism under section 620A of the Foreign As- by him to the bill, H.R. 434, supra; as The export of any medicine, medical de- sistance Act of 1961 (22 U.S.C. 2371). follows: vice, or agricultural commodity sold under AMENDMENT NO. 2432 contract to any country the government of AMENDMENT NO. 2439 At the end of the amendment, add the fol- which the Secretary of States determines At an appropriate place, insert the fol- lowing new subsection: under section 6(j) of the Export Administra- lowing:

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.112 pfrm01 PsN: S02PT1 S13688 CONGRESSIONAL RECORD — SENATE November 2, 1999 SEC. ll. EXCLUSION RELATING TO COUNTRY SEC. ll. EXCLUSION RELATING TO COUNTRY lated conditions in this Act have been effec- SUPPORTIVE OF INTERNATIONAL SUPPORTIVE OF INTERNATIONAL tive in encouraging beneficiary countries to TERRORISM. TERRORISM. take steps to afford internationally recog- Nothing in this Act shall be construed as Nothing in this Act shall be construed as nized worker rights to workers in such bene- authorizing any commercial sale that is oth- authorizing financing or United States Gov- ficiary countries. erwise prohibited by law to any country that ernment credit for commercial transactions on June 20, 1999, had been determined by the with Syria, which has been determined by ROTH AMENDEMNT NO. 2450 Secretary of State to have repeatedly pro- the Secretary of State to have repeatedly vided support for acts of international ter- provided support for acts of international (Ordered to lie on the table.) rorism under section 620A of the Foreign As- terrorism under section 620A of the Foreign Mr. ROTH submitted an amendment sistance Act of 1961 (22 U.S.C. 2371). Assistance Act of 1961 (22 U.S.C. 2371). intended to be proposed by him to amendment No. 2379 submitted by Mr. AMENDMENT NO. 2440 AMENDMENT NO. 2446 HOLLINGS to the bill, H.R. 434, supra; as At an appropriate place, insert the fol- At an appropriate place, insert the fol- follows: lowing: lowing: ll Strike all text on lines 1 through 11 and at SEC. . EXCLUSION RELATING TO COUNTRY SEC. ll. EXCLUSION RELATING TO COUNTRY SUPPORTIVE OF INTERNATIONAL the appropriate place in the bill insert the SUPPORTIVE OF INTERNATIONAL following: TERRORISM. TERRORISM. SEC. . LABOR CONDITIONS IN BENEFICIARY Nothing in this Act shall be construed as Nothing in this Act shall be construed as authorizing financing or United States Gov- COUNTRIES. authorizing financing or United States Gov- Within one year after the date of enact- ernment credit for commercial transactions ernment credit for commercial transactions with Sudan, which has been determined by ment of this Act, the President shall report with Iraq, which has been determined by the to Congress regarding whether the labor-re- the Secretary of State to have repeatedly Secretary of State to have repeatedly pro- provided support for acts of international lated conditions in this Act have been effec- vided support for acts of international ter- tive in encouraging beneficiary countries to terrorism under section 620A of the Foreign rorism under section 620A of the Foreign As- Assistance Act of 1961 (22 U.S.C. 2371). take steps to afford internationally recog- sistance Act of 1961 (22 U.S.C. 2371). nized worker rights to workers in such bene- AMENDMENT NO. 2441 ficiary countries. At an appropriate place, insert the fol- ROTH AMENDMENT NO. 2447 lowing: (Ordered to lie on the table.) ROTH AMENDMENT NO. 2451 SEC. ll. EXCLUSION RELATING TO COUNTRY Mr. ROTH submitted an amendment (Ordered to lie on the table.) SUPPORTIVE OF INTERNATIONAL Mr. ROTH submitted an amendment TERRORISM. intended to be proposed by him to Nothing in this Act shall be construed as amendment No. 2354 submitted by Mr. intended to be proposed by him to the authorizing financing or United States Gov- LEVIN to the bill, H.R. 434, supra; as bill, H.R. 434, supra; as follows: ernment credit for commercial transactions follows: Strike all text on page 1, line 1 through with Libya, which has been determined by Strike all text on lines 1 through 4 and at page 2, line 10 and at the appropriate place in the Secretary of State to have repeatedly the appropriate place in the bill insert the the bill insert the following: provided support for acts of international following: SEC. . LABOR CONDITIONS IN BENEFICIARY COUNTRIES. terrorism under section 620A of the Foreign SEC. . PROHIBITION ON IMPORTS MADE WITH Assistance Act of 1961 (22 U.S.C. 2371). CHILD LABOR. Within one year after the date of enact- ment of this Act, the President shall report Consistent with the requirements of sec- AMENDMENT NO. 2442 to Congress regarding whether the labor-re- tion 307 of the Tariff Act of 1930, as amended lated conditions in this Act have been effec- At an appropriate place, insert the fol- by this Act, none of the benefits provided by tive in encouraging beneficiary countries to lowing: the amendments made by this Act shall be take steps to afford internationally recog- SEC. ll. EXCLUSION RELATING TO COUNTRY made available to any imports that are made nized worker rights to workers in such bene- SUPPORTIVE OF INTERNATIONAL with forced or indentured child labor. TERRORISM. ficiary countries. Nothing in this Act shall be construed as authorizing financing or United States Gov- ROTH AMENDMENT NO. 2448 ROTH AMENDMENT NO. 2452 ernment credit for commercial transactions (Ordered to lie on the table.) with North Korea, which has been deter- (Ordered to lie on the table. Mr. ROTH submitted an amendment Mr. ROTH submitted an amendment mined by the Secretary of State to have re- intended to be proposed by him to peatedly provided support for acts of inter- intended to be proposed by him to national terrorism under section 620A of the amendment No. 2373 submitted by Mr. amendment No. 2381 submitted by Mr. Foreign Assistance Act of 1961 (22 U.S.C. COVERDELL to the bill, H.R. 434, supra; HOLLINGS to the bill, H.R. 434, supra; as 2371). as follows: follows: Strike all text on page 1, line 2 through Strike all text on page 1, line 3 through AMENDMENT NO. 2443 page 2, line 3 and at the appropriate place in page 2, line5 and at the appropriate place in At an appropriate place, insert the fol- the bill insert the following: the bill insert the following: lowing: SEC. . COOPERATION WITH EFFORTS TO COM- SEC. . LABOR CONDITIONS IN BENEFICIARY SEC. ll. EXCLUSION RELATING TO COUNTRY BAT MONEY LAUNDERING. COUNTRIES, SUPPORTIVE OF INTERNATIONAL In determining a country’s eligibility for Within one year after the date of enact- TERRORISM. the beneficial trade preferences provided for ment of this Act, the President shall report Nothing in this Act shall be construed as under this Act, the President shall consider to Congress regarding whether the labor-re- authorizing financing or United States Gov- whether such country has taken steps to pre- lated conditions in this Act have been effec- ernment credit for commercial transactions vent its financial system from being used to tive in encouraging beneficiary countries to with Iran, which has been determined by the circumvent the criminal laws of the United take steps to afford internationally recog- Secretary of State to have repeatedly pro- States relating to money laundering and nized worker rights to workers in such bene- vided support for acts of international ter- other illegal financial activities. ficiary countries. rorism under section 620A of the Foreign As- SEC. . ENVIRONMENTAL COOPERATION WITH sistance Act of 1961 (22 U.S.C. 2371). ROTH AMENDMENT NO. 2449 BENEFICIARY COUNTRIES. With respect to any of the countries eligi- AMENDMENT NO. 2444 (Ordered to lie on the table.) ble for benefits under this Act, the President At the appropriate place in the bill, insert Mr. ROTH submitted an amendment may, at his discretion, direct the Adminis- the following: intended to be proposed by him to trator of the Environmental Protection ll SEC. . (a) Nothing in this Act shall be amendment No. 2378 submitted by Mr. Agency to prepare a report identifying what construed as authorizing commercial trans- actions should be taken on a bilateral or actions with Cuba, which has been deter- HOLLINGS to the bill, H.R. 434, supra; as follows: multilateral basis to assist such beneficiary mined by the Secretary of State to have re- country in taking the steps necessary to im- peatedly provided support for acts of inter- Strike all text on line 1 through 10 and at prove environmental conditions in that national terrorism under section 620A of the the appropriate place in the bill insert the country. Foreign Assistance Act of 1961 (22 U.S.C. following: 2371). SEC. . LABOR CONDITIONS IN BENEFICIARY ROTH AMENDMENT NO. 2453 COUNTRIES. AMENDMENT NO. 2445 Within one year after the date of enact- (Ordered to lie on the table.) At an appropriate place, insert the fol- ment of this Act, the President shall report Mr. ROTH submitted and amendment lowing: to Congress regarding whether the labor-re- intended to be proposed by him to

VerDate 29-OCT-99 04:36 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.112 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13689 amendment No. 2382 submitted by Mr. may, at his discretion, direct the Adminis- Mr. ROTH submitted an amendment HOLLINGS to the bill, H.R. 434, supra; as trator of the Environmental Protection intended to be proposed by him to follows: Agency to prepare a report identifying what amendment No. 2389 submitted by Mr. actions should be taken on a bilateral or Strike all text on lines 4 through 9 and at multilateral basis to assist such beneficiary HOLLINGS to the bill, H.R. 434, supra; as the appropriate place in the bill insert the country in taking the steps necessary to im- follows: following: prove environmental conditions in that Strike all text on page 1, line 1 through The benefits provided by this Act and the country. page 2, line 3 and at the appropriate place in amendments made by this Act shall termi- the bill insert the following: nate immediately if: (a) the Bureau of Labor Statistics deter- ROTH AMENDMENT NO. 2457 SEC. . MINIMUM WAGE REQUIREMENT. mines that United States textile and apparel (Ordered to lie on the table.) (a) Subject to the requirements of sub- industries have lost 50,000 or more jobs at Mr. ROTH submitted an amendment section (b), the benefits provided by this Act and the amendments made by this Act shall any time during the first 24 months after the intended to be proposed by him to date of enactment of this Act; and, not be available to any country unless the (b) the International Trade Commission amendment No. 2386 submitted by Mr. President determines that: determines that such job losses are directly HOLLINGS to the bill, H.R. 434, supra; as (1) The Country has established by law a attributable to the benefits provided by this follows: requirement that employees in that country Act and are not attributable to any other Strike all text on page 1, line 1 through who are compensated on an hourly basis be cause. page 2, line 11 and at the appropriate place in compensated at a rate of not less than $1 per the bill insert the following: hour; and ROTH AMENDMENT NO. 2454 SEC. . ENVIRONMENTAL COOPERATION WITH (2) the goods imported from that country BENEFICIARY COUNTRIES. that are eligible for such benefits are pro- (Ordered to lie on the table.) With respect to any of the countries eligi- duced in accordance with that law. Mr. ROTH submitted an amendment ble for benefits under this Act, the President (b) The requirements of subsection (a) shall intended to be proposed by him to may, at his discretion, direct the Adminis- not apply in those instances where the bene- amendment No. 2383 submitted by Mr. trator of the Environmental Protection ficiary country has an unemployment rate HOLLINGS to the bill, H.R. 434, supra; as Agency to prepare a report identifying what that exceeds five percent. follows: actions should be taken on a bilateral or multilateral basis to assist such beneficiary Strike all text on lines 4 through 9 and at ROTH AMENDMENT NO. 2461 country in taking the steps necessary to im- the appropriate place in the bill insert the prove environmental conditions in that (Ordered to lie on the table.) following: country. Mr. ROTH submitted an amendment SEC. . TERMINATION OF BENEFITS IF DOMESTIC intended to be proposed by him to INDUSTRY SUFFERS. The benefits provided by this Act and the ROTH AMENDMENT NO. 2458 amendment No. 2390 submitted by Mr. amendments made by this Act shall termi- (Ordered to lie on the table.) HOLLINGS to the bill, H.R. 434, supra; as nate immediately if: Mr. ROTH submitted an amendment follows: (a) the Bureau of labor Statistics deter- intended to be proposed by him to Strike all text on page 1, line 10 through mines that United States textile and apparel amendment No. 2387 submitted by Mr. page 2, line 9 and at the appropriate place in industries have lost 50,000 or more jobs at the bill insert the following: any time during the first 24 months after the HOLLINGS to the bill, H.R. 434, supra; as follows: (d) PROHIBITION ON IMPORTS MADE WITH date of enactment of this Act; and CHILD LABOR.—Consistent with the require- (b) the International Trade Commission Strike all text on page 1, line 1 through ments of section 307 of the Tariff Act of 1930, determines that such job losses are directly page 2, line 2 and at the appropriate place in as amended by this Act, none of the benefits attributable to increased trade resulting the bill insert the following: provided by the amendments made by this from the benefits provided by this Act and SEC. . ELIMINATION OF MARKET BARRIERS IN Act shall be made available to any imports are not attributable to any other cause. BENEFICIARY COUNTRIES. that are made with forced or indentured The President shall take any action he child labor. ROTH AMENDMENT NO. 2455 deems necessary under his existing authority (Ordered to lie on the table.) to eliminate any trade barriers that, in his ROTH AMENDMENT NO. 2462 Mr. ROTH submitted an amendment view, unduly restrict the access of United States goods, services or investments to the (Ordered to lie on the table.) intended to be proposed by him to market of a country to which benefits are Mr. ROTH submitted an amendment amendment No. 2384 submitted by Mr. conferred under this Act. intended to be proposed by him to HOLLINGS to the bill, H.R. 434, supra; as amendment No. 2391 submitted by Mr. follows: ROTH AMENDMENT NO. 2459 HOLLINGS to the bill, H.R. 434, supra; as Strike all text on lines 1 through 10 and at (Ordered to lie on the table.) follows: the appropriate place in the bill insert the Mr. ROTH submitted an amendment following: Strike all text on line 2 through line 11 and intended to be proposed by him to at the appropriate place in the bill insert the SEC. . ENVIRONMENTAL COOPERATION WITH BENEFICIARY COUNTRIES. amendment No. 2388 submitted by Mr. following: With respect to any of the countries eligi- HOLLINGS to the bill, H.R. 434, supra; as SEC. . PROHIBITION ON IMPORTS MADE WITH ble for benefits under this Act, the President follows: CHILD LABOR. may, at his discretion, direct the Adminis- Strike all text on page 1, line 1 through Consistent with the requirements of sec- trator of the Environmental Protection page 2, line 13 and at the appropriate place tion 307 of the Tariff Act of 1930, as amended Agency to prepare a report identifying what on the bill insert the following: by this Act, none of the benefits provided by the amendments made by this Act shall be actions should be taken on a bilateral or SEC. MINIMUM WAGE REQUIREMENT. multilateral basis to assist such beneficiary (a) Subject to the requirements of sub- made available to any imports that are made country in taking the steps necessary to im- section (b), the benefits provided by this Act with forced or indentured child labor. prove environmental conditions in that and the amendments made by this Act shall country. not be available to any country unless the ROTH AMENDMENT NO. 2463 President determines that: (Ordered to lie on the table.) ROTH AMENDMENT NO. 2456 (1) The country has established by law a requirement that employees in that country Mr. ROTH submitted an amendment (Ordered to lie on the table.) who are compensated on an hourly basis be intended to be proposed by him to Mr. ROTH submitted an amendment compensated at a rate of not less than $1 per amendment No. 2403 submitted by Mr. intended to be proposed by him to hour; and HARKIN to the bill, H.R. 434, supra; as amendment No. 2385 submitted by Mr. (2) the goods imported from that country follows: that are eligible for such benefits are pro- HOLLINGS to the bill, H.R. 434, supra; as Strike all text on page 1, line 1 through duced in accordance with that law. follows: page 2, line 6 and at the appropriate place in (b) The requirements of subsection (a) shall the bill insert the following: Strike all text on page 1, line 1 through not apply in those instances where the bene- line 12 and at the appropriate place in the ficiary country has an unemployment rate SEC. . ELIMINATION OF THE WORST FORMS OF bill insert the following: that exceeds five percent. CHILD LABOR. SEC. . ENVIRONMENTAL COOPERATION WITH In determining a country’s eligibility for BENEFICIARY COUNTRIES. the benefits under this Act, the President With respect to any of the countries eligi- ROTH AMENDMENT NO. 2460 shall consider whether such country has ble for benefits under this Act, the President (Ordered to lie on the table.) taken or is taking steps to comply with the

VerDate 29-OCT-99 04:51 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.114 pfrm01 PsN: S02PT1 S13690 CONGRESSIONAL RECORD — SENATE November 2, 1999 standards regarding child labor established Mr. ROTH submitted an amendment tive in encouraging beneficiary countries to by the ILO Convention (No. 182) for the intended to be proposed by him to take steps to afford internationally recog- Elimination of the Worst Forms of Child amendment No. 2416 submitted by Mr. nized worker rights to workers in such bene- Labor. ficiary countries. HOLLINGS to the bill, H.R. 434, supra; as follows: SEC. . ENVIRONMENTAL COOPERATION WITH ROTH AMENDMENT NO. 2464 BENEFICIARY COUNTRIES. Strike all text on lines 4 through line 9 and With respect to any of the countries eligi- (Ordered to lie on the table.) at the appropriate place in the bill insert the ble for benefits under this Act, the President Mr. ROTH submitted an amendment following: may, at his discretion, direct the Adminis- intended to be proposed by him to The benefits provided by this Act and the trator of the Environmental Protection amendment No. 2404 submitted by Mr. amendments made by this Act shall termi- Agency to prepare a report identifying what HARKIN to the bill, H.R. 434, supra; as nate immediately if: actions should be taken on a bilateral or follows: (a) The Bureau of Labor Statistics deter- multilateral basis to assist such beneficiary mines that United States textile and apparel country in taking the steps necessary to im- Strike all text on lines 1 through 10 and at industries have lost 50,000 or more jobs at the appropriate place in the bill insert the prove environmental conditions in that any time during the first 24 months after the country. following: date of enactment of this Act; and, SEC. . ELIMINATION OF THE WORST FORMS OF (b) the International Trade Commission CHILD LABOR. determines that such job losses are directly ROTH AMENDMENT NO. 2471 In determining a country’s eligibility for attributable to increased trade resulting (Ordered to lie on the table.) the benefits under this Act, the President from the benefits provided by this Act and Mr. ROTH submitted an amendment shall consider whether such country has are not attributable to any other cause. taken or is taking steps to comply with the intended to be proposed by him to standards regarding child labor established amendment No. 2421 submitted by Mr. by the ILO Convention (No. 182) for the ROTH AMENDMENT NO. 2468 HOLLINGS to the bill, H.R. 434, supra; as Elimination of the Worst Forms of Child (Ordered to lie on the table.) follows: Labor. Mr. ROTH submitted an amendment Strike all text on page 1, line 3 through intended to be proposed by him to page 2, line 3 and at the appropriate place in ROTH AMENDMENT NO. 2465 amendment No. 2417 submitted by Mr. the bill insert the following: (a) Subject to the requirements of sub- (Ordered to lie on the table.) HOLLINGS to the bill, H.R. 434, supra; as section (b), the benefits provided by this Act Mr. ROTH submitted an amendment follows: and the amendments made by this Act shall intended to be proposed by him to Strike all text on line 1 through line 12 and not be available to any country unless the amendment No. 2405 submitted by Mr. at the appropriate place in the bill insert the President determines that: FEINGOLD to the bill, H.R. 434, supra; as following: (1) the country has established by law a re- follows: SEC. . ENVIRONMENTAL COOPERATION WITH quirement that employees in that country Make the following modifications to the BENEFICIARY COUNTRIES. who are compensated on an hourly basis be text: With respect to any of the countries eligi- compensated at a rate of not less than $1 per Page 2, on line 13, strike ‘‘section 4’’ and ble for benefits under this Act, the President hour; and, replace with ‘‘section 104’’. may, at his discretion, direct the Adminis- (2) the goods imported from that country Page 4, strike text from top of page to the trator of the Environmental Protection that are eligible for such benefits are pro- last unnumbered line. Agency to prepare a report identifying what duced in accordance with that law. Page 4, line 19, redesignate paragraph as actions should be taken on a bilateral or (b) The requirements of subsection (a) shall paragraph ‘‘(C)’’. multilateral basis to assist such beneficiary not apply in those instances where the bene- Page 4, line 25, strike ‘‘section 4’’ and re- country in taking the steps necessary to im- ficiary country has an unemployment rate place with ‘‘section 104’’. prove environmental conditions in that that exceeds 5 percent. Page 5, line 8, replace ‘‘section 105’’ with country. ‘‘section 115’’. ROTH AMENDMENT NO. 2472 Page 7, line 5, strike ‘‘section 4’’ and re- ROTH AMENDMENT NO. 2469 place with ‘‘section 104’’. (Ordered to lie on the table.) Page 7, line 20, strike ‘‘505A’’ and replace (Ordered to lie on the table.) Mr. ROTH submitted an amendment with ‘‘506B’’. Mr. ROTH submitted an amendment intended to be proposed by him to Page 9, strike all text on that page and re- intended to be proposed by him to amendment No. 2430 submitted by Ms. place with the following: amendment No. 2418 submitted by Mr. LANDRIEU to the bill, H.R. 434, supra; as ‘‘(1) the country adopts an efficient visa system to guard against unlawful trans- HOLLINGS to the bill, H.R. 434, supra; as follows: shipment of textile and apparel goods and follows: Strike text on page 2, line 1, beginning the use of counterfeit documents; and (2) the Strike all text on page 1, line 1 through with ‘‘more than 5 times’’ and continuing country enacts legislation or promulgates page 2, line 2 and at the appropriate place in through the end of the text on line 4, and re- regulations that would permit United States the bill insert the following: place with the following: ‘‘at a level where Customs Service verification teams to have SEC. . ELIMINATION OF MARKET BARRIERS IN inclusion of that country would undermine the access necessary to investigate thor- BENEFICIARY COUNTRIES. the policy objectives set forth in section 103 oughly allegations of transshipment through The President shall take any action he of Title I of this Act.’’ such country. deems necessary under his existing authority Page 14, strike line 22 through page 20, line to eliminate any trade barriers that, in his HOLLINGS AMENDMENTS NOS. 22. view, unduly restrict the access of United 2473–2474 States goods, services or investments to the ROTH AMENDMENT NO. 2466 market of a country to which benefits are (Ordered to lie on the table.) conferred under this Act. Mr. HOLLINGS submitted two (Ordered to lie on the table.) amendments intended to be proposed Mr. ROTH submitted an amendment ROTH AMENDMENT NO. 2470 by him to the bill, H.R. 434, supra; as intended to be proposed by him to follows: amendment No. 2406 proposed by Mr. (Ordered to lie on the table.) AMENDMENT NO. 2473 FEINGOLD to the bill, H.R. 434, supra; as Mr. ROTH submitted an amendment follows: intended to be proposed by him to At the appropriate place insert the fol- lowing: Make the following modifications to the amendment No. 2419 submitted by Mr. SEC. ——. RECIPROCAL TRADE AGREEMENTS RE- text: HOLLINGS to the bill, H.R. 434, supra; as QUIRED. Page 4, strike text from top of page (line 6) follows: The benefits provided by the amendments through line 10. Strike all text on page 1, line 1 through Page 4, on line 25, strike ‘‘section 4’’ and made by this Act shall not be available to page 2, line 5 and at the appropriate place in replace with ‘‘section 104’’. any country until the President has nego- the bill insert the following: Page 5, on line 8, replace ‘‘section 105’’ tiated, obtained, and implemented an agree- with ‘‘section 115’’. SEC. . LABOR CONDITIONS IN BENEFICIARY ment with the country providing tariff con- Page 7, strike lines 1 through 7. COUNTRIES. cessions for the importation of United Within one year after the date of enact- States-made goods that reduce any such im- ment of this Act, the President shall report port tariffs to rates identical to the tariff ROTH AMENDMENT NO. 2467 to Congress regarding whether the labor-re- rates applied by the United States to that (Ordered to lie on the table.) lated conditions in this Act have been effec- country.

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AMENDMENT NO. 2474 ‘‘(f) SAFEGUARD.—The President shall have (e), otherwise satisfies the eligibility criteria Strike all after the first word and insert the authority to impose appropriate rem- set forth in section 502. the following: edies, including restrictions on or the re- ‘‘(2) MONITORING AND REVIEW OF CERTAIN moval of quota-free and duty-free treatment COUNTRIES.—The President shall monitor and SEC. . RECIPROCAL TRADE AGREEMENTS RE- QUIRED. provided under this section, in the event review the progress of each country listed in section 4 of the African Growth and Oppor- The benefits provided by the amendments that textile and apparel articles from a bene- tunity Act in meeting the requirements de- made by this Act shall not be available to ficiary sub-Saharan African country are scribed in paragraph (1) in order to deter- any country until the President has nego- being imported in such increased quantities mine the current or potential eligibility of tiated, obtained, and implemented an agree- as to cause serious damage, or actual threat each country to be designated as a bene- ment with the country providing tariff con- thereof, to the domestic industry producing ficiary sub-Saharan African country for pur- cessions for the importation of United like or directly competitive articles. The poses of subsection (a). The President shall States-made goods that reduce any such im- President shall exercise his authority under include the reasons for the President’s deter- port tariffs to rates identical to the tariff this subsection consistent with the Agree- minations in the annual report required by rates applied by the United States to that ment on Textiles and Clothing. section 105 of the African Growth and Oppor- country. ‘‘(g) DEFINITIONS.—In this section: ‘‘(1) AGREEMENT ON TEXTILES AND CLOTH- tunity Act. ING.—The term ‘Agreement on Textiles and ‘‘(3) CONTINUING COMPLIANCE.—If the Presi- ROTH AMENDMENT NO. 2475 Clothing’ means the Agreement on Textiles dent determines that a beneficiary sub-Saha- (Ordered to lie on the table.) and Clothing referred to in section 101(d)(4) ran African country is not making continual of the Uruguay Round Agreements Act (19 progress in meeting the requirements de- Mr. ROTH submitted an amendment U.S.C. 3511(d)(4)). scribed in paragraph (1), the President shall intended to be proposed by him to ‘‘(2) BENEFICIARY SUB-SAHARAN AFRICAN terminate the designation of that country as amendment No. 2428 proposed by Mr. COUNTRY, ETC.—The terms ‘beneficiary sub- a beneficiary sub-Saharan African country FEINGOLD to the bill, H.R. 434, supra; as Saharan African countries’ and ‘beneficiary for purposes of this section, effective on Jan- follows: sub-Saharan African countries’ have the uary 1 of the year following the year in Make the following modifications to the same meaning as such terms have under sec- which such determination is made. ‘‘(b) PREFERENTIAL TARIFF TREATMENT FOR text: tion 506A(c) of the Trade Act of 1974. CERTAIN ARTICLES.— Page 3, strike lines 5 through 18. ‘‘(3) CUSTOMS SERVICE.—The term ‘Customs ‘‘(1) IN GENERAL.—The President may pro- Page 3, redesignate section ‘‘(E)’’ as sec- Service’ means the United States Customs vide duty-free treatment for any article de- tion ‘‘(C)’’. Service.’’ scribed in section 503(b)(1) (B) through (G) Page 7, strike lines 18 through page 8, line (except for textile luggage) that is the 7, and replace with the following text: ROTH AMENDMENT NO. 2476 growth, product, or manufacture of a bene- ‘‘(1) the country adopts an efficient visa (Ordered to lie on the table.) ficiary sub-Saharan African country de- system to guard against unlawful trans- Mr. ROTH submitted an amendment scribed in subsection (a), if, after receiving shipments of textile and apparel goods and the advice of the International Trade Com- the use of counterfeit documents; and intended to be proposed by him to mission in accordance with section 503(e), ‘‘(2) the country enacts legislation or pro- amendment No. 2427 submitted by Mr. the President determines that such article is mulgates regulations that would permit FEINGOLD to the bill, H.R. 434, supra; as not import-sensitive in the context of im- United States Customs verification teams to follows: ports from beneficiary sub-Saharan African have the access necessary to investigate Make the following modifications to the countries. thoroughly allegations of transshipments text: ‘‘(2) RULES OF ORIGIN.—The duty-free treat- through such country.’’ Page 1, strike text beginning on line 3 ment provided under paragraph (1) shall Page 9, strike line 25 through page 18, line through page 23, line 11, and replace with the apply to any article described in that para- 7, and replace with the following text: following: graph that meets the requirements of section ‘‘(c) PENALTIES FOR TRANSSHIPMENTS.— ‘‘SEC. 111. ELIGIBILITY FOR CERTAIN BENEFITS. 503(a)(2), except that— ‘‘(1) PENALTIES FOR EXPORTERS.—If the ‘‘(a) IN GENERAL.—Title V of the Trade Act ‘‘(A) if the cost or value of materials pro- President determines, based on sufficient of 1974 is amended by inserting after section duced in the customs territory of the United evidence, that an exporter has engaged in 506 the following new section: States is included with respect to that arti- transshipment with respect to textile or ap- ‘‘SEC. 506A. DESIGNATION OF SUB-SAHARAN AF- cle, an amount not to exceed 15 percent of parel products from a beneficiary sub-Saha- RICAN COUNTRIES FOR CERTAIN the appraised value of the article at the time ran African country, then the President BENEFITS. it is entered that is attributed to such shall deny all benefits under this section and ‘‘(a) AUTHORITY TO DESIGNATE.— United States cost or value may be applied section 506A of the Trade Act of 1974 to such ‘‘(1) IN GENERAL.—Notwithstanding any toward determining the percentage referred exporter, any successor of such exporter, and other provision of law, the President is au- to in subparagraph (A) of section 503(a)(2); any other entity owned or operated by the thorized to designate a country listed in sec- and principal of the exporter for a period of 2 tion 4 of the African Growth and Oppor- ‘‘(B) the cost or value of the materials in- years. tunity Act as a beneficiary sub-Saharan Af- cluded with respect to that article that are ‘‘(2) TRANSSHIPMENT DESCRIBED.—Trans- rican country eligible for the benefits de- produced in one or more beneficiary sub-Sa- shipment within the meaning of this sub- scribed in subsection (b), if the President de- haran African countries shall be applied in paragraph has occurred when preferential termines that the country— determining such percentage. treatment for a textile or apparel article ‘‘(A) has established, or is making con- ‘‘(c) BENEFICIARY SUB-SAHARAN AFRICAN under subsection (a) has been claimed on the tinual progress toward establishing— COUNTRIES, ETC.—For purposes of this title, basis of material false information con- ‘‘(i) a market-based economy, where pri- the terms ‘beneficiary sub-Saharan African cerning the country of origin, manufacture, vate property rights are protected and the country’ and beneficiary sub-Saharan Afri- processing, or assembly of the article of any principles of an open, rules-based trading can countries’ mean a country or countries of its components. For purposes of this system are observed; listed in section 104 of the African Growth clause, false information is material if dis- ‘‘(ii) a democratic society, where the rule and Opportunity Act that the President has closure of the true information would mean of law, political freedom, participatory de- determined is eligible under subsection (a) of or would have meant that the article is or mocracy, and the right to due process and a this section.’’. was ineligible for preferential treatment fair trial are observed; (b) WAIVER OF COMPETITIVE NEED LIMITA- under subsection (a). ‘‘(iii) an open trading system through the TION.—Section 503(c)(2)(D) of the Trade Act ‘‘(d) TECHNICAL ASSISTANCE.—The Customs elimination of barriers to United States of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to Service shall provide technical assistance to trade and investment and the resolution of read as follows: the beneficiary sub-Saharan African coun- bilateral trade and investment disputes; and (D) LEAST-DEVELOPED BENEFICIARY DEVEL- tries for the implementation of the require- ‘‘(iv) economic policies to reduce poverty, OPING COUNTRIES AND BENEFICIARY SUB-SAHA- ments set forth in subsection (a)(1) and (2). increase the availability of health care and RAN AFRICAN COUNTRIES.—Subparagraph (A) ‘‘(e) MONITORING AND REPORTS TO CON- educational opportunities, expand physical shall not apply to any least-developed bene- GRESS.—The Customs Service shall monitor infrastructure, and promote the establish- ficiary developing country or any bene- and the Commissioner of Customs shall sub- ment of private enterprise; ficiary sub-Saharan African country.’’. mit to Congress, not later than March 31 of ‘‘(B) does not engage in gross violations of (c) TERMINATION.—Title V of the Trade Act each year, a report on the effectiveness of internationally recognized human rights or of 1974 is amended by inserting after section the anti-circumvention systems described in provide support for acts of international ter- 505 of the following new section: this section and on measures taken by coun- rorism and cooperates in international ef- ‘‘SEC. 505A. TERMINATION OF BENEFITS FOR tries in sub-Saharan Africa which export tex- forts to eliminate human rights violations SUB-SAHARAN AFRICAN COUNTRIES. tile or apparel to the United States to pre- and terrorist activities; and ‘‘In the case of a country listed in section vent circumvention as described in article 5 ‘‘(C) subject to the authority granted to 4 of the African Growth and Opportunity Act of the Agreement on Textiles and Clothing. the President under section 502 (a), (d), and that is a beneficiary developing country,

VerDate 29-OCT-99 04:51 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.124 pfrm01 PsN: S02PT1 S13692 CONGRESSIONAL RECORD — SENATE November 2, 1999 duty-free treatment provided under this title evidence, that an exporter has engaged in the Committee on Ways and Means of the shall remain in effect through September 30, transshipment with respect to textile or ap- House of Representatives regarding the 2006.’’. parel products from a beneficiary sub-Saha- President’s conclusions on the feasibility of (d) CLERICAL AMENDMENTS.—The table of ran African country, then the President negotiating such agreement (or agreements). contents for title V of the Trade Act of 1974 shall deny all benefits under this section and If the President determines that the negotia- is amended— section 506A of the Trade Act of 1974 to such tion of any such free trade agreement is fea- (1) by inserting after the item relating to exporter, any successor of such exporter, and sible, the President shall provide a detailed section 505 the following new item: ‘‘505A. any other entity owned or operated by the plan for such negotiation that outlines the Termination of benefits for sub-Saharan Af- principal of the exporter for a period of 2 objectives, timing, any potential benefits to rican countries.’’; and years. the United States and sub-Saharan Africa, (2) by inserting after the item relating to (2) TRANSSHIPMENT DESCRIBED.—Trans- and the likely economic impact of any such section 506 the following new item: ‘‘506A. shipment within the meaning of this sub- agreement.’’. Designation of sub-Saharan African coun- paragraph has occurred when preferential tries for certain benefits.’’. treatment for a textile or apparel article KERRY AMENDMENT NO. 2477 (e) EFFECTIVE DATE.—The amendments under subsection (a) has been claimed on the made by this section take effect on October basis of material false information con- (Ordered to lie on the table.) 1, 1999. cerning the country of origin, manufacture, Mr. KERRY submitted an amend- SEC. 112. TREATMENT OF CERTAIN TEXTILES processing, or assembly of the article or any ment intended to be proposed by him AND APPAREL. of its components. For purposes of this to the bill, H.R. 434, supra; as follows: (a) PREFERENTIAL TREATMENT.—Notwith- clause, false information is material if dis- At the appropriate place, insert: standing any other provision of law, textile closure of the true information would mean ll and apparel articles described in subsection or would have meant that the article is or SEC. . CREDIT FOR MEDICAL RESEARCH RE- (b) (including textile luggage) imported from LATED TO DEVELOPING VACCINES was ineligible for preferential treatment AGAINST WIDESPREAD DISEASES. a beneficiary sub-Saharan African country, under subsection (a). (a) IN GENERAL.—Subpart D of part IV of described in section 506A(c) of the Trade Act (d) TECHNICAL ASSISTANCE.—The Customs subchapter A of chapter 1 (relating to busi- of 1974, shall enter the United States free of Service shall provide technical assistance to ness related credits) is amended by adding at duty and free of any quantitative limita- the beneficiary sub-Saharan African coun- the end the following new section: tions, if— tries for the implementation of the require- (1) the country adopts an efficient visa sys- ments set forth in subsection (a)(1) and (2). ‘‘SEC. 45D. CREDIT FOR MEDICAL RESEARCH RE- LATED TO DEVELOPING VACCINES tem to guard against unlawful trans- (e) MONITORING AND REPORTS TO CON- AGAINST WIDESPREAD DISEASES. shipment of textile and apparel goods and GRESS.—The Customs Service shall monitor ‘‘(a) GENERAL RULE.—For purposes of sec- the use of counterfeit documents; and and the Commissioner of Customs shall sub- tion 38, the vaccine research credit deter- (2) the country enacts legislation or pro- mit to Congress not later than March 31 of mined under this section for the taxable year mulgates regulations that would permit each year, a report on the effectiveness of is an amount equal to 30 percent of the quali- United States customs verification teams to the anti-circumvention system described in fied vaccine research expenses for the tax- have the access necessary to investigate this section and on measures taken by coun- able year. thoroughly allegations of transshipment tries in sub-Saharan Africa which export tex- ‘‘(b) QUALIFIED VACCINE RESEARCH EX- through such country. tiles or apparel to the United States to pre- PENSES.—For purposes of this section— (b) PRODUCTS COVERED.—The preferential vent circumvention as described in article 5 ‘‘(1) QUALIFIED VACCINE RESEARCH EX- treatment described in subsection (a) shall of the Agreement on Textiles and Clothing. PENSES.— apply only to the following textile and ap- (f) SAFEGUARD.—The President shall have ‘‘(A) IN GENERAL.—Except as otherwise pro- parel products: the authority to impose appropriate rem- vided in this paragraph, the term ‘qualified (1) APPAREL ARTICLES ASSEMBLED IN BENE- edies, including restrictions on or the re- vaccine research expenses’ means the FICIARY SUB-SAHARAN AFRICAN COUNTRIES.— moval of quota-free and duty-free treatment amounts which are paid or incurred by the Apparel articles assembled in one or more provided under this section, in the event taxpayer during the taxable year which beneficiary sub-Saharan African countries that textile and apparel articles from a bene- would be described in subsection (b) of sec- from fabrics wholly formed and cut in the ficiary sub-Saharan African country are tion 41 if such subsection were applied with United States, from yarns wholly formed in being imported in such increased quantities the modifications set forth in subparagraph the United States that are— as to cause serious damage, or actual threat (B). (A) entered under subheading 9802.00.80 of thereof, to the domestic industry producing ‘‘(B) MODIFICATIONS.—For purposes of sub- the Harmonized Tariff Schedule of the like or directly competitive articles. The paragraph (A), subsection (b) of section 41 United States; or President shall exercise his authority under shall be applied— (B) entered under chapter 61 or 62 of the this subsection consistent with the Agree- ‘‘(i) by substituting ‘vaccine research’ for Harmonized Tariff Schedule of the United ment on Textile and Clothing. ‘qualified research’ each place it appears in States, if, after such assembly, the articles (g) DEFINITIONS.—In this section: would have qualified for entry under sub- (1) AGREEMENT ON TEXTILES AND CLOTH- paragraphs (2) and (3) of such subsection, and heading 9802.00.80 of the Harmonized Tariff ING.—The term ‘‘Agreement on Textiles and ‘‘(ii) by substituting ‘75 percent’ for ‘65 per- Schedule of the United States but for the Clothing’’ means the Agreement on Textiles cent’ in paragraph (3)(A) of such subsection. fact that the articles were subjected to and Clothing referred to in section 101(d)(4) ‘‘(C) EXCLUSION FOR AMOUNTS FUNDED BY stone-washing, enzyme-washing, acid wash- of the Uruguay Round Agreements Act (19 GRANTS, ETC.—The term ‘qualified vaccine ing, perma-pressing, oven-baking, bleaching, U.S.C. 3511(d)(4)). research expenses’ shall not include any garment-dyeing, or other similar processes. (2) BENEFICIARY SUB-SAHARAN AFRICAN amount to the extent such amount is funded (2) APPAREL ARTICLES CUT AND ASSEMBLED COUNTRY, ETC.—The terms ‘‘beneficiary sub- by any grant, contract, or otherwise by an- IN BENEFICIARY SUB-SAHARAN AFRICAN COUN- Saharan African country’’ and ‘‘beneficiary other person (or any governmental entity). TRIES.—Apprel articles cut in one or more sub-Saharan African countries’’ have the ‘‘(2) VACCINE RESEARCH.—The term ‘vaccine beneficiary sub-Saharan African countries same meaning as such terms have under sec- research’ means research to develop vaccines from fabric wholly formed in the United tion 506A(c) of the Trade Act of 1974. and microbicides for— States from yarns wholly formed in the (3) CUSTOMS SERVICE.—The term ‘‘Customs ‘‘(A) malaria, United States, if such articles are assembled Service’’ means the United States Customs ‘‘(B) tuberculosis, or in one or more beneficiary sub-Saharan Afri- Service. ‘‘(C) HIV. can countries with thread formed in the (h) EFFECTIVE DATE.—The amendments ‘‘(c) COORDINATION WITH CREDIT FOR IN- United States. made by this section take effect on October CREASING RESEARCH EXPENDITURES.— (3) HANDLOOMED, HANDMADE, AND FOLKLORE 1, 1999 and shall remain in effect through ‘‘(1) IN GENERAL.—Except as provided in ARTICLES.—A handloomed, handmade, or September 30, 2006. paragraph (2), any qualified vaccine research folklore article of a beneficiary sub-Saharan Page 23, line 12, redesignate section 114 as expenses for a taxable year to which an elec- African country or countries that is certified section 113. tion under this section applies shall not be as such by the competent authority of such Page 25, after line 8, insert the following taken into account for purposes of deter- beneficiary country or countries. For pur- text: mining the credit allowable under section 41 poses of this paragraph, the President, after ‘‘SEC. 114. UNITED STATES-SUB-SAHARAN AFRICA for such taxable year. consultation with the beneficiary sub-Saha- FREE TRADE AREA. ‘‘(2) EXPENSES INCLUDED IN DETERMINING ran African country or countries concerned, ‘‘(a) IN GENERAL.—The President shall ex- BASE PERIOD RESEARCH EXPENSES.—Any shall determine which, if any, particular tex- amine the feasibility of negotiating a free qualified vaccine research expenses for any tile and apparel goods of the country (or trade agreement (or agreements) with inter- taxable year which are qualified research ex- countries) shall be treated as being ested sub-Saharan African countries. penses (within the meaning of section 41(b)) handloomed, handmade, or folklore goods. ‘‘(b) REPORT TO CONGRESS.—Not later than shall be taken into account in determining (c) PENALTIES FOR TRANSSHIPMENTS.— 12 months after the date of enactment of this base period research expenses for purposes of (1) PENALTIES FOR EXPORTERS.—If the Act, the President shall submit a report to applying section 41 to subsequent taxable President determines, based on sufficient the Committee on Finance of the Senate and years.

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‘‘(d) SPECIAL RULES.— of subsection (c) shall apply for purposes of ‘‘(1) IN GENERAL.—The fees charged under ‘‘(1) LIMITATIONS ON FOREIGN TESTING.—No this subsection.’’. the program required by subsection (a)— credit shall be allowed under this section (d) DEDUCTION FOR UNUSED PORTION OF ‘‘(A) shall vary according to categories (or with respect to any vaccine research (other CREDIT.—Section 196(c) (defining qualified subcategories) established by the Secretary, than human clinical testing) conducted out- business credits) is amended by striking ‘‘(B) shall be determined after taking into side the United States by any entity which is ‘‘and’’ at the end of paragraph (7), by strik- account the average time for (and difficulty not registered with the Secretary. ing the period at the end of paragraph (8) and of) complying with requests in each category ‘‘(2) CERTAIN RULES MADE APPLICABLE.— inserting ‘‘, and’’, and by adding at the end (and subcategory), and Rules similar to the rules of paragraphs (1) the following new paragraph: ‘‘(C) shall be payable in advance. and (2) of section 41(f) shall apply for pur- ‘‘(9) the vaccine research credit determined ‘‘(2) EXEMPTIONS, ETC.—The Secretary shall poses of this section. under section 45D(a) (other than such credit provide for such exemptions (and reduced ‘‘(3) ELECTION.—This section (other than determined under the rules of section fees) under such program as the Secretary subsection (e)) shall apply to any taxpayer 280C(d)(2)).’’. determines to be appropriate. for any taxable year only if such taxpayer (e) CLERICAL AMENDMENT.—The table of ‘‘(3) AVERAGE FEE REQUIREMENT.—The aver- elects to have this section apply for such sections for subpart D of part IV of sub- age fee charged under the program required taxable year. chapter A of chapter 1 is amended by adding by subsection (a) shall not be less than the ‘‘(e) SHAREHOLDER EQUITY INVESTMENT at the end the following new item: amount determined under the following CREDIT IN LIEU OF RESEARCH CREDIT.— ‘‘Sec. 45D. Credit for medical research re- table: ‘‘(1) IN GENERAL.—For purposes of section lated to developing vaccines ‘‘Category: Average Fee: 38, the vaccine research credit determined against widespread diseases.’’. Employee plan ruling and opinion .. $250 under this section for the taxable year shall Exempt organization ruling ...... $350 include an amount equal to 20 percent of the (f) EFFECTIVE DATE.—Except as provided in Employee plan determination ...... $300 amount paid by the taxpayer to acquire subsection (k), the amendments made by this Exempt organization determina- $275 qualified research stock in a corporation if— section shall apply to amounts paid or in- tion. Chief counsel ruling ...... $200. ‘‘(A) the amount received by the corpora- curred after December 31, 1999, in taxable tion for such stock is used within 18 months years ending after such date. ‘‘(c) TERMINATION.—No fee shall be imposed (g) DISTRIBUTION OF VACCINES DEVELOPED after the amount is received to pay qualified under this section with respect to requests USING CREDIT.—It is the sense of Congress vaccine research expenses of the corporation made after September 30, 2009.’’. that if a tax credit is allowed under section for which a credit would (but for subpara- (2) CONFORMING AMENDMENTS.— 45D of the Internal Revenue Code of 1986 (as graph (B) and subsection (d)(3)) be deter- (A) The table of sections for chapter 77 is added by subsection (a)) to any corporation mined under this section, and amended by adding at the end the following or shareholder of a corporation by reason of ‘‘(B) the corporation waives its right to the new item: vaccine research expenses incurred by the credit determined under this section for the ‘‘Sec. 7527. Internal Revenue Service user corporation in the development of a vaccine, qualified vaccine research expenses which fees.’’. such corporation should certify to the Sec- are paid with such amount. retary of the Treasury that, within 1 year (B) Section 10511 of the Revenue Act of 1987 ‘‘(2) QUALIFIED RESEARCH STOCK.—For pur- after that vaccine is first licensed, such cor- is repealed. poses of paragraph (1), the term ‘qualified re- poration will establish a good faith plan to (3) EFFECTIVE DATE.—The amendments search stock’ means any stock in a C maximize international access to high qual- made by this subsection shall apply to re- corporation— ity and affordable vaccines. quests made after the date of the enactment ‘‘(A) which is originally issued after the (h) STUDY.—The Secretary of the Treasury, of this Act. date of the enactment of the Lifesaving Vac- in consultation with the Institute of Medi- cine Technology Act of 1999, f cine, shall conduct a study of the effective- ‘‘(B) which is acquired by the taxpayer at ness of the credit under section 45D of the In- BANKRUPTCY REFORM ACT OF 1999 its original issue (directly or through an un- ternal Revenue Code of 1986 (as so added) in derwriter) in exchange for money or other stimulating vaccine research. Not later than property (not including stock), and the date which is 4 years after the date of the THURMOND AMENDMENT NO. 2478 ‘‘(C) as of the date of issuance, such cor- enactment of this Act, the Secretary shall poration meets the gross assets tests of sub- (Ordered to lie on the table.) submit to the Congress the results of such paragraphs (A) and (B) of section 1202(d)(1). Mr. THURMOND submitted an study together with any recommendations amendment intended to be proposed by ‘‘(f) TERMINATION.—This section shall not the Secretary may have to improve the ef- apply to any amount paid or incurred after him to the bill (S. 625) to amend title fectiveness of such credit in stimulating vac- 11, United States Code, and for other December 31, 2000.’’ cine research. (b) INCLUSION IN GENERAL BUSINESS CRED- (i) ACCELERATION OF INTRODUCTION OF PRI- purposes, as follows: IT.— ORITY VACCINES.—It is the sense of Congress On page 124, insert between lines 14 and 15 (1) IN GENERAL.—Section 38(b) (relating to that the President and Federal agencies (in- the following: current year business credit) is amended by cluding the Department of State, the Depart- SEC. 322. EXCLUSIVE JURISDICTION IN MATTERS striking ‘‘plus’’ at the end of paragraph (11), ment of Health and Human Services, and the INVOLVING BANKRUPTCY PROFES- by striking the period at the end of para- Department of the Treasury) should work to- SIONALS. graph (12) and inserting ‘‘, plus’’, and by add- gether in vigorous support of the creation Section 1334 of title 28, United States Code, ing at the end the following new paragraph: and funding of a multi-lateral, international is amended— ‘‘(13) the vaccine research credit deter- effort, such as a vaccine purchase fund, to (1) in subsection (b) by striking ‘‘Notwith- mined under section 45D.’’. accelerate the introduction of vaccines to standing’’ and inserting ‘‘Except as provided (2) TRANSITION RULE.—Section 39(d) (relat- which the tax credit under section 45D of the in subsection (e)(2), and notwithstanding’’; ing to transitional rules) is amended by add- Internal Revenue Code of 1986 (as so added) and ing at the end the following new paragraph: applies and of other priority vaccines into (2) amending subsection (e) to read as fol- ‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT the poorest countries in the world. lows: ‘‘(e) The district court in which a case BEFORE ENACTMENT.—No portion of the un- (j) FLEXIBLE PRICING.—It is the sense of under title 11 is commenced or is pending used business credit for any taxable year Congress that flexible or differential pricing shall have exclusive jurisdiction— which is attributable to the vaccine research for vaccines, providing lowered prices for the ‘‘(1) of all the property, wherever located, credit determined under section 45D may be poorest countries, is one of several valid of the debtor as of the commencement of carried back to a taxable year ending before strategies to accelerate the introduction of such case, and of property of the estate; and the date of the enactment of section 45D.’’. vaccines in developing countries. ‘‘(2) over all matters relating to that case (c) DENIAL OF DOUBLE BENEFIT.—Section (k) EXTENSION OF INTERNAL REVENUE SERV- concerning the employment and compensa- 280C (relating to certain expenses for which ICE USER FEES.— tion of professional persons arising out of or credits are allowable) is amended by adding (1) IN GENERAL.—Chapter 77 (relating to at the end the following new subsection: miscellaneous provisions) is amended by add- related to their employment and perform- ance or nonperformance of the duties under- ‘‘(d) CREDIT FOR QUALIFIED VACCINE RE- ing at the end the following new section: taken in connection with their employ- SEARCH EXPENSES.— ‘‘SEC. 7527. INTERNAL REVENUE SERVICE USER ment.’’. ‘‘(1) IN GENERAL.—No deduction shall be al- FEES. lowed for that portion of the qualified vac- ‘‘(a) GENERAL RULE.—The Secretary shall f cine research expenses (as defined in section establish a program requiring the payment AFRICAN GROWTH AND 45D(b)) otherwise allowable as a deduction of user fees for— OPPORTUNITY ACT for the taxable year which is equal to the ‘‘(1) requests to the Internal Revenue Serv- amount of the credit determined for such ice for ruling letters, opinion letters, and de- taxable year under section 45D(a). termination letters, and BINGAMAN AMENDMENT NO. 2479 ‘‘(2) CERTAIN RULES TO APPLY.—Rules simi- ‘‘(2) other similar requests. lar to the rules of paragraphs (2), (3), and (4) ‘‘(b) PROGRAM CRITERIA.— (Ordered to lie on the table.)

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.119 pfrm01 PsN: S02PT1 S13694 CONGRESSIONAL RECORD — SENATE November 2, 1999 Mr. BINGAMAN submitted an ‘‘(i) determines that a waiver of the appli- SEC. . ENVIRONMENTAL AGREEMENT RE- amendment to amendment No. 2325 cation of such paragraph is in the national QUIRED. The benefits provided by the amendments proposed by Senator ROTH, to the bill, interest of the United States and will expand made by this Act shall not be available to H.R. 434, supra; as follows: trade and investment opportunities for U.S. companies in such country, and any country until the President has nego- At the appropriate place, insert the fol- ‘‘(ii) reports such waiver under subpara- tiated with that country a side agreement lowing new section: graph (B). concerning the environment, similar to the ll SEC. . REPORT. ‘‘(B) REPORT.—Not less than 30 days before North American Agreement on Environ- (a) IN GENERAL.—Not later than 9 months the date on which a waiver is granted under mental Cooperation, and submitted that after the date of enactment of this section, this paragraph, the President shall report to agreement to the Congress. the Comptroller General of the United States Congress— shall submit a report to Congress regarding ‘‘(i) the intention to grant such waiver, and HOLLINGS AMENDMENT NO. 2485 the efficiency and effectiveness of Federal ‘‘(ii) the reason for the determination and State coordination of unemployment under subparagraph (A)(i).’’. Mr. HOLLINGS proposed an amend- and retraining activities associated with the (b) EFFECTIVE DATE.—The amendment ment to the bill, H.R. 434, supra; as fol- following programs and legislation: made by this section shall apply on or after lows: (1) trade adjustment assistance (including February 1, 2001. At the appropriate place, insert the fol- NAFTA trade adjustment assistance) pro- lowing: vided for under title II of the Trade Act of 1974; HOLLINGS AMENDMENTS NOS. SEC. . RECIPROCAL TRADE AGREEMENTS RE- QUIRED. (2) the Job Training Partnership Act; 2481–2482 The benefits provided by the amendments (3) the Workforce Investment Act; and (Ordered to lie on the table.) made by this Act shall not be available to (4) unemployment insurance. any country until the President has nego- (b) PERIOD COVERED.—The report shall Mr. HOLLINGS submitted two cover the activities involved in the programs amendments intended to be proposed tiated, obtained, and implemented an agree- and legislation listed in subsection (a) from by him to the bill, H.R. 434, supra; as ment with the country providing tariff con- January 1, 1994 to December 31, 1999. follows: cessions for the importation of United States-made goods that reduce any such im- (c) DATA AND RECOMMENDATIONS.—The re- AMENDMENT NO. 2481 port shall at a minimum include specific port tariffs to rates identical to the tariff data and recommendations regarding— At the appropriate place, insert the fol- rates applied by the United States to that (1) the compatibility of program require- lowing: country. ments related to the employment and re- SEC. . LABOR AGREEMENT REQUIRED. training of dislocated workers in the United The benefits provided by the amendments HOLLINGS AMENDMENT NO. 2486 made by this Act shall not become available States, with particular emphasis on the (Ordered to lie on the table.) trade adjustment assistance programs pro- to any country until— vided for under title II of the Trade Act of (1) the President has negotiated with that Mr. HOLLINGS submitted an amend- 1974; country a side agreement concerning labor ment intended to be proposed by him (2) the compatibility of application proce- standards, similar to the North American to the bill, H.R. 434, supra; as follows: dures related to the employment and re- Agreement on Labor Cooperation (as defined Strike all after the first word and insert training of dislocated workers in the United in section 532(b)(2) of the Trade Agreements the following: Act of 1979 (19 U.S.C. 3471(b)(2)); and States; SEC. . RECIPROCAL TRADE AGREEMENTS RE- (3) the capacity of these programs to assist (2) submitted that agreement to the Con- QUIRED. workers negatively impacted by foreign gress. The benefits provided by the amendments trade and the transfer of production to other made by this Act shall not be available to countries, measured in terms of employment AMENDMENT NO. 2482 any country until the President has nego- and wages; Strike all after the first word and insert tiated, obtained, and implemented an agree- (4) the capacity of these programs to assist the following: ment with the country providing tariff con- secondary workers negatively impacted by SEC. . LABOR AGREEMENT REQUIRED. cessions for the importation of United foreign trade and the transfer of production The benefits provided by the amendments States-made goods that reduce any such im- to other countries, measured in terms of em- made by this Act shall not become available port tariffs to rates identical to the tariff ployment and wages; to any country until— rates applied by the United States to that (5) how the impact of foreign trade and the (1) the President has negotiated with that country. transfer of production to other countries country a side agreement concerning labor would have changed the number of bene- standards, similar to the North American WELLSTONE AMENDMENT NO. 2487 ficiaries covered under the trade adjustment Agreement on Labor Cooperation (as defined assistance program if the trade adjustment in section 532(b)(2) of the Trade Agreements (Ordered to lie on the table.) assistance program covered secondary work- Act of 1979 (19 U.S.C. 3471(b)(2)); and Mr. WELLSTONE submitted an ers in the United States; and (2) submitted that agreement to the Con- amendment intended to be proposed by (6) the effectiveness of the programs de- gress. him to the bill, H.R. 434, supra; as fol- scribed in subsection (a) in achieving reem- ployment of United States workers and lows: maintaining wage levels of United States HOLLINGS AMENDMENT NO. 2483 At the appropriate place, add the fol- lowing: workers who have been dislocated as a result Mr. HOLLINGS proposed an amend- of foreign trade and the transfer of produc- ment to the bill, H.R. 434, supra; as fol- SEC. . ENCOURAGING TRADE AND INVESTMENT tion to other countries. MUTUALLY BENEFICIAL TO BOTH lows: THE UNITED STATES AND CARIB- BEAN COUNTRIES. NICKLES AMENDMENT NO. 2480 At the appropriate place, insert the fol- lowing: (a) CONDITIONING OF TRADE BENEFITS ON OMPLIANCE ITH NTERNATIONALLY ECOG (Ordered to lie on the table.) SEC. . ENVIRONMENTAL AGREEMENT RE- C W I R - Mr. NICKLES submitted an amend- QUIRED. NIZED LABOR RIGHTS.—None of the benefits ment to the bill, H.R. 434, supra; as fol- The benefits provided by the amendments provided to beneficiary countries under the lows: made by this Act shall not be available to CBTEA shall be made available before the At the appropriate place in the bill, insert any country until the President has nego- Secretary of Labor has made a determina- the following: tiated with that country a side agreement tion pursuant to paragraph (b) of the fol- lowing: SEC . APPLICATION OF DENIAL OF FOREIGN concerning the environment, similar to the TAX CREDIT REGARDING TRADE North American Agreement on Environ- (1) The beneficiary country does not en- AND INVESTMENT WITH RESPECT mental Cooperation, and submitted that gage in significant violations of internation- TO CERTAIN FOREIGN COUNTRIES. agreement to the Congress. ally recognized human rights and the Sec- (a) IN GENERAL.—Section 901(j) of the In- retary of State agrees with this determina- ternal Revenue Code of 1986 (relating to de- tion; and nial of foreign tax credit, etc., regarding HOLLINGS AMENDMENT NO. 2484 (2)(A) The beneficiary country is providing trade and investment with respect to certain (Ordered to lie on the table.) for effective enforcement of internationally foreign countries) is amended by adding at Mr. HOLLINGS submitted an amend- recognized worker rights throughout the country (including in export processing the end the following new paragraph: ment intended to be proposed by him ‘‘(5) WAIVER OF DENIAL.— zones) as determined under paragraph (b), in- ‘‘(A) IN GENERAL.—Paragraph (1) shall not to the bill, H.R. 434, supra; as follows: cluding the core labor standards enumerated apply with respect to taxes paid or accrued Strike all after the first word and insert in the appropriate treaties of the Inter- to a country if the President— the following: national Labor Organization, and including—

VerDate 29-OCT-99 04:51 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.119 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13695 (i) the right of association; ASHCROFT (AND OTHERS) firsthand knowledge of current African farm- (ii) the right to organize and bargain col- AMENDMENT NO. 2488 ing practices. lectively; (c) AUTHORIZATION OF FUNDING.—There is (iii) a prohibition on the use of any form of (Ordered to lie on the table.) authorized to be appropriated $2,000,000 to coerced or compulsory labor; Mr. ASHCROFT (for himself, Mr. conduct the study described in subsection (iv) the international minimum age for the DASCHLE, Mr. BAUCUS, Mr. BURNS, Mr. (a). employment of children (age 15); and BROWNBACK, Mr. GRASSLEY, Mr. INHOFE, (v) acceptable conditions of work with re- spect to minimum wages, hours of work, and Mr. HARKIN, Mr. ROBB, Mr. CRAIG, Mr. GRAMM (AND OTHERS) occupational safety and health. DORGAN, Mr. LUGAR, Mr. HELMS, Mr. AMENDMENT NO. 2490 (B) The government of the beneficiary DURBIN, Mr. INOUYE, Mr. CONRAD, Mr. (Ordered to lie on the table.) country ensures that the Secretary of Labor, WYDEN, Mr. GORTON, Mr. THOMAS, Ms. Mr. GRAMM (for himself, Mr. ENZI, the head of the national labor agency of the COLLINS, Mr. ROBERTS, Mr. BINGAMAN, and Mr. JOHNSON) submitted an amend- government of that country, and the head of Mr. MCCONNELL, Mr. JOHNSON, Mr. the Interamerican Regional Organization of ment intended to be proposed by them Workers (ORIT) each has access to all appro- FITZGERALD, Mr. GRAMS, Mr. ALLARD, to the bill, H.R. 434, supra; as follows: priate records and other information of all Mr. HUTCHINSON, Mr. BOND, Mr. ENZI, At the appropriate place, insert the fol- business enterprises in the country. and Mr. CRAPO) submitted an amend- lowing: (b) DETERMINATION OF COMPLIANCE WITH ment intended to be proposed by them SECTION 1. SHORT TITLE; TABLE OF CONTENTS. INTERNATIONALLY RECOGNIZED WORKER to the bill, H.R. 434, as follows: (a) SHORT TITLE.—This Act may be cited as RIGHTS:— At the appropriate place, add the fol- the ‘‘Export Administration Act of 1999’’. (1) DETERMINATION— lowing: (b) TABLE OF CONTENTS.—The table of con- (A) IN GENERAL.—For purposes of carrying tents of this Act is as follows: out paragraph (a)(2), the Secretary of Labor, SEC. . CHIEF AGRICULTURAL NEGOTIATOR. (a) ESTABLISHMENT OF A POSITION.—There Sec. 1. Short title; table of contents. in consultation with the individuals de- Sec. 2. Definitions. scribed in clause (B) and pursuant to the pro- is established the position of Chief Agricul- cedures described in clause (C), shall deter- tural Negotiator in the Office of the United TITLE I—GENERAL AUTHORITY mine whether or not each beneficiary coun- States Trade Representative. The Chief Agri- Sec. 101. Commerce Control List. try is providing for effective enforcement of cultural Negotiator shall be appointed by the Sec. 102. Delegation of authority. internationally recognized worker rights President, with the rank of Ambassador, by Sec. 103. Public information; consultation throughout the country (including in export and with the advice and consent of the Sen- requirements. Sec. 104. Right of export. processing zones). ate. Sec. 105. Export control advisory commit- (B) INDIVIDUALS DESCRIBED.—The individ- (b) FUNCTIONS.—The primary function of uals described in this clause are the head of the Chief Agricultural Negotiator shall be to tees. Sec. 106. Prohibition on charging fees. the national labor agency of the government conduct trade negotiations and to enforce of the beneficiary country in question and trade agreements relating to U.S. agricul- TITLE II—NATIONAL SECURITY EXPORT the head of the Inter-American Regional Or- tural products and services. The Chief Agri- CONTROLS ganization of Workers (ORIT). cultural Negotiator shall be a vigorous advo- Subtitle A—Authority and Procedures (C) PUBLIC COMMENT.—Not later tan 90 days cate on behalf of U.S. agricultural interests. Sec. 201. Authority for national security ex- before the Secretary of Labor makes a deter- The Chief Agricultural Negotiator shall per- port controls. mination that a country is in compliance form such other functions as the United Sec. 202. National Security Control List. with the requirements of paragraph (a)(2), States Trade Representative may direct. Sec. 203. Country tiers. the Secretary shall publish notice in the (c) COMPENSATION.—The Chief Agricultural Sec. 204. Incorporated parts and compo- Federal Register and an opportunity for pub- Negotiator shall be paid at the highest rate nents. lic comment. The Secretary shall take into of basic pay payable to a member of the Sen- Sec. 205. Petition process for modifying ex- consideration the comments received in ior Executive Service. port status. making a determination under such para- Subtitle B—Foreign Availability and Mass- graph (a)(2). SANTORUM AMENDMENT NO. 2489 Market Status (2) CONTINUING COMPLIANCE.—In the case of (Ordered to lie on the table.) Sec. 211. Determination of foreign avail- a country for which the Secretary of Labor ability and mass-market sta- has made an initial determination under sub- Mr. SANTORUM submitted an tus. paragraph (1) that the country is in compli- amendment intended to be proposed by Sec. 212. Presidential set-aside of foreign ance with the requirements of paragraph him to the bill, H.R. 434, supra; as fol- availability determination. (a)(2), the Secretary, in consultation with lows: Sec. 213. Presidential set-aside of mass-mar- the individuals described in subparagraph (1), On page 22, between lines 5 and 6, insert ket status determination. shall, not less than once every 3 years there- the following new section: Sec. 214. Office of Technology Evaluation. after, conduct a review and make a deter- TITLE III—FOREIGN POLICY EXPORT mination with respect to that country to en- SEC. 116. STUDY ON IMPROVING AFRICAN AGRI- CULTURAL PRACTICES. CONTROLS sure continuing compliance with the require- (a) IN GENERAL.—The United States De- Sec. 301. Authority for foreign policy export ments of paragraph (a)(2). The Secretary partment of Agriculture, in consultation controls. shall submit the determination to Congress. with American Land Grant Colleges and Uni- Sec. 302. Procedures for imposing controls. (3) REPORT.—Not later than 6 months after Sec. 303. Criteria for foreign policy export the date of enactment of this Act, and on an versities and not-for-profit international or- ganizations, is authorized to conduct a two- controls. annual basis thereafter, the Secretary of Sec. 304. Presidential report before imposi- Labor shall prepare and submit to Congress year study on ways to improve the flow of American farming techniques and practices tion of control. a report containing— Sec. 305. Imposition of controls. (A) a description of each determination to African farmers. The study conducted by the Department of Agriculture shall include Sec. 306. Deferral authority. made under this paragraph during the pre- Sec. 307. Review, renewal, and termination. an examination of ways of improving or ceding year; Sec. 308. Termination of controls under this utilizing— (B) a description of the position taken by title. each of the individuals described in subpara- (1) knowledge of insect and sanitation pro- Sec. 309. Compliance with international ob- graph (1)(B) with respect to each such deter- cedures; ligations. mination; and (2) modern farming and soil conservation Sec. 310. Designation of countries sup- (C) a report on the public comments re- techniques; porting international ter- ceived pursuant to subparagraph (1)(C). (3) modern farming equipment (including rorism. (c) ADDITIONAL ENFORCEMENT.—A citizen of maintaining the equipment); TITLE IV—EXEMPTION FOR AGRICUL- the United States shall have a cause of ac- (4) marketing crop yields to prospective TURAL COMMODITIES, MEDICINE, AND tion in the United States district court in purchasers; and MEDICAL SUPPLIES the district in which the citizen resides or in (5) crop maximization practices. any other appropriate district to seek com- The study shall be submitted to the Com- Sec. 401. Exemption for agricultural com- pliance with the standards set forth under mittee on Agriculture, Nutrition, and For- modities, medicine, and med- this section with respect to any CBTEA ben- estry of the Senate and the Committee on ical supplies. eficiary country, including a cause of action Agriculture of the House of Representatives Sec. 402. Termination of export controls re- in an appropriate United States district not later than September 30, 2001. quired by law. Sec. 403. Exclusions. court for other appropriate equitable relief. (b) LAND GRANT COLLEGES AND NOT-FOR- In addition to any other relief sought in such PROFIT INSTITUTIONS.—The Department of TITLE V—PROCEDURES FOR EXPORT LI- an action, a citizen may seek the value of Agriculture is encouraged to consult with CENSES AND INTERAGENCY DISPUTE any damages caused by the failure of a coun- American Land Grant Colleges and not-for- RESOLUTION try or company to comply. profit international organizations that have Sec. 501. Export license procedures.

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00077 Fmt 0624 Sfmt 0655 E:\CR\FM\A02NO6.125 pfrm01 PsN: S02PT1 S13696 CONGRESSIONAL RECORD — SENATE November 2, 1999 Sec. 502. Interagency dispute resolution (i) a United States citizen; TITLE I—GENERAL AUTHORITY process. (ii) an alien lawfully admitted for perma- SEC. 101. COMMERCE CONTROL LIST. nent residence to the United States; or TITLE VI—INTERNATIONAL ARRANGE- (a) IN GENERAL.—Under such conditions as (iii) a protected individual as defined in MENTS; FOREIGN BOYCOTTS; SANC- the Secretary may impose, consistent with TIONS; AND ENFORCEMENT section 274B(a)(3) of the Immigration and Na- tionality Act. (8 U.S.C. 1324b(a)(3)); the provisions of this Act, the Secretary— Sec. 601. International arrangements. (B) any corporation, partnership, business (1) shall establish and maintain a Com- Sec. 602. Foreign boycotts. merce Control List (in this Act referred to as Sec. 603. Penalties. association, society, trust, organization, or other nongovernmental entity created or or- the ‘‘Control List’’) consisting of items the Sec. 604. Multilateral export control regime export of which are subject to licensing or violation sanctions. ganized under the laws of a foreign country or that has its principal place of business other authorization or requirement; and Sec. 605. Missile proliferation control viola- (2) may require any type of license, or tions. outside the United States; and (C) any governmental entity of a foreign other authorization, including recordkeeping Sec. 606. Chemical and biological weapons and reporting, appropriate to the effective proliferation sanctions. country. (13) ITEM.— and efficient implementation of this Act Sec. 607. Enforcement. with respect to the export of an item on the Sec. 608. Administrative procedure. (A) IN GENERAL.—The term ‘‘item’’ means any good, service, or technology. Control List. TITLE VII—EXPORT CONTROL (B) OTHER DEFINITIONS.—In this paragraph: (b) TYPES OF LICENSE OR OTHER AUTHORIZA- AUTHORITY AND REGULATIONS (i) GOOD.—The term ‘‘good’’ means any ar- TION.—The types of license or other author- Sec. 701. Export control authority and regu- ticle, natural or manmade substance, mate- ization referred to in subsection (a)(2) in- lations. rial, supply or manufactured product, includ- clude the following: Sec. 702. Confidentiality of information. ing inspection and test equipment, including (1) SPECIFIC EXPORTS.—A license that au- TITLE VIII—MISCELLANEOUS source code, and excluding technical data. thorizes a specific export. PROVISIONS (ii) TECHNOLOGY.—The term ‘‘technology’’ (2) MULTIPLE EXPORTS.—A license that au- thorizes multiple exports in lieu of a license Sec. 801. Annual and periodic reports. means specific information that is necessary for each such export. Sec. 802. Technical and conforming amend- for the development, production, or use of an (3) NOTIFICATION IN LIEU OF LICENSE.— A no- ments. item, and takes the form of technical data or tification in lieu of a license that authorizes Sec. 803. Savings provisions. technical assistance. (iii) SERVICE.—The term ‘‘service’’ means a specific export or multiple exports subject SEC. 2. DEFINITIONS. any act of assistance, help or aid. to the condition that the exporter file with In this Act: (14) MASS-MARKET STATUS.—The term the Department advance notification of the (1) AFFILIATE.—The term ‘‘affiliate’’ in- ‘‘mass-market status’’ means the status de- intent to export in accordance with regula- cludes both governmental entities and com- scribed in section 211(d)(2). tions prescribed by the Secretary. mercial entities that are controlled in fact (15) MULTILATERAL EXPORT CONTROL RE- (4) LICENSE EXCEPTION.—Authority to ex- by the government of a country. GIME.—The term ‘‘multilateral export con- port an item on the Control List without (2) AGRICULTURE COMMODITY.—The term trol regime’’ means an international agree- prior license or notification in lieu of a li- ‘‘agriculture commodity’’ means any agri- ment or arrangement among two or more cense. cultural commodity, food, fiber, or livestock countries, including the United States, a (c) AFTER-MARKET SERVICE AND REPLACE- (including livestock, as defined in section purpose of which is to coordinate national MENT PARTS.—A license or other authoriza- 602(2) of the Emergency Livestock Feed As- export control policies of its members re- tion to export an item under this Act shall sistance Act of 1988 (title VI of the Agricul- garding certain items. The term includes re- not be required for an exporter to provide tural Act of 1949 (7 U.S.C. 1471(2))), and in- gimes such as the Australia Group, the after-market service or replacement parts, cluding insects), and any product thereof. Wassenaar Arrangement, the Missile Tech- to replace on a one-for-one basis parts that (3) CONTROL OR CONTROLLED.—The terms nology Control Regime (MTCR), and the Nu- were in an item that was lawfully exported ‘‘control’’ and ‘‘controlled’’ mean any re- clear Suppliers’ Group Dual Use Arrange- from the United States, unless— quirement, condition, authorization, or pro- ment. (1) the Secretary determines that such li- hibition on the export or reexport of an item. (16) NATIONAL SECURITY CONTROL LIST.—The cense or other authorization is required to (4) CONTROL LIST.—The term ‘‘Control term ‘‘National Security Control List’’ export such parts; or List’’ means the Commerce Control List es- means the list established under section (2) the after-market service or replacement tablished under section 101. 202(a). parts materially enhance the capability of (5) CONTROLLED COUNTRY.—The term ‘‘con- (17) PERSON.—The term ‘‘person’’ an item which was the basis for the item trolled country’’ means a country with re- includes— being controlled. spect to which exports are controlled under (A) any individual, or partnership, corpora- (d) INCIDENTAL TECHNOLOGY.—A license or section 201 or 301. tion, business association, society, trust, or- other authorization to export an item under (6) CONTROLLED ITEM.—The term ‘‘con- ganization, or any other group created or or- this Act includes authorization to export trolled item’’ means an item the export of ganized under the laws of a country; and technology related to the item, if the level of which is controlled under this Act. (B) any government, or any governmental the technology does not exceed the minimum (7) COUNTRY.—The term ‘‘country’’ means a entity. necessary to install, repair, maintain, in- sovereign country or an autonomous cus- (18) REEXPORT.—The term ‘‘reexport’’ spect, operate, or use the item. toms territory. means the shipment, transfer, trans- (e) REGULATIONS.—The Secretary may pre- (8) COUNTRY SUPPORTING INTERNATIONAL shipment, or diversion of items from one for- scribe such regulations as are necessary to TERRORISM.—The term ‘‘country supporting eign country to another. carry out the provisions of this Act. international terrorism’’ means a country (19) SECRETARY.—The term ‘‘Secretary’’ designated by the Secretary of State pursu- means the Secretary of Commerce. SEC. 102. DELEGATION OF AUTHORITY. ant to section 310. (20) UNITED STATES.—The term ‘‘United (a) IN GENERAL.—Except as provided in (9) DEPARTMENT.—The term ‘‘Department’’ States’’ means the States of the United subsection (b) and subject to the provisions means the Department of Commerce. States, the District of Columbia, and any of this Act, the President may delegate the (10) EXPORT.— commonwealth, territory, dependency, or power, authority, and discretion conferred (A) The term ‘‘export’’ means— possession of the United States, and includes upon the President by this Act to such de- (i) an actual shipment, transfer, or trans- the outer Continental Shelf, as defined in partments, agencies, and officials of the Gov- mission of an item out of the United States; section 2(a) of the Outer Continental Shelf ernment as the President considers appro- (ii) a transfer to any person of an item ei- Lands Act (42 U.S.C. 1331(a)). priate. ther within the United States or outside of (21) UNITED STATES PERSON.—The term (b) EXCEPTIONS.— the United States with the knowledge or in- ‘‘United States person’’ means— (1) DELEGATION TO APPOINTEES CONFIRMED tent that the item will be shipped, trans- (A) any United States citizen, resident, or BY SENATE.—No authority delegated to the ferred, or transmitted to an unauthorized re- national (other than an individual resident President under this Act may be delegated cipient outside the United States; and outside the United States who is employed by the President to, or exercised by, any offi- (iii) a transfer of an item in the United by a person other than a United States per- cial of any department or agency the head of States to an embassy or affiliate of a coun- son); which is not appointed by the President, by try, which shall be considered an export to (B) any domestic concern (including any and with the advice and consent of the Sen- that country. permanent domestic establishment of any ate. (B) The term includes a reexport. foreign concern); and (2) OTHER LIMITATIONS.—The President may (11) FOREIGN AVAILABILITY STATUS.—The (C) any foreign subsidiary or affiliate (in- not delegate or transfer the President’s term ‘‘foreign availability status’’ means the cluding any permanent foreign establish- power, authority, or discretion to overrule or status described in section 211(d)(1). ment) of any domestic concern which is con- modify any recommendation or decision (12) FOREIGN PERSON.—The term ‘‘foreign trolled in fact by such domestic concern, as made by the Secretary, the Secretary of De- person’’ means— determined under regulations prescribed by fense, or the Secretary of State under this (A) an individual who is not— the President. Act.

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SEC. 103. PUBLIC INFORMATION; CONSULTATION (e) ACCESS TO INFORMATION.—To facilitate (1) ESTABLISHMENT.—The Secretary shall REQUIREMENTS. the work of the export control advisory com- establish and maintain a National Security (a) PUBLIC INFORMATION.—The Secretary mittees appointed under subsection (a), the Control List as part of the Control List. shall keep the public fully informed of Secretary, in conjunction with other depart- (2) CONTENTS.—The National Security Con- changes in export control policy and proce- ments and agencies participating in the ad- trol List shall be composed of a list of items dures instituted in conformity with this Act. ministration of this Act, shall disclose to the export of which is controlled for national (b) CONSULTATION WITH PERSONS AF- each such committee adequate information, security purposes under this title. FECTED.—The Secretary shall consult regu- consistent with national security, pertaining (3) IDENTIFICATION OF ITEMS FOR NATIONAL larly with representatives of a broad spec- to the reasons for the export controls which SECURITY CONTROL LIST.—The Secretary, with trum of enterprises, labor organizations, and are in effect or contemplated for the items the concurrence of the Secretary of Defense citizens interested in or affected by export or policies for which that committee fur- and in consultation with the head of any controls in order to obtain their views on nishes advice. Information provided by the other department or agency of the United United States export control policy and the export control advisory committees shall not States that the Secretary considers appro- foreign availability or mass-market status of be subject to disclosure under section 552 of priate, shall identify the items to be in- controlled items. title 5, United States Code, and such infor- cluded on the National Security Control mation shall not be published or disclosed SEC. 104. RIGHT OF EXPORT. List. unless the Secretary determines that the No license or other authorization to export (b) RISK ASSESSMENT.— withholding thereof is contrary to the na- may be required under this Act, or under (1) REQUIREMENT.—The Secretary shall, in tional interest. establishing and maintaining the National regulations issued under this Act, except to SEC. 106. PROHIBITION ON CHARGING FEES. Security Control List, balance the national carry out the provisions of this Act. No fee may be charged in connection with security risks of not controlling the export SEC. 105. EXPORT CONTROL ADVISORY COMMIT- the submission or processing of an applica- of an item against the economic costs of con- TEES. tion for an export license under this Act. trolling the item, taking into consideration (a) APPOINTMENT.—Upon the Secretary’s TITLE II—NATIONAL SECURITY EXPORT the risk factors set forth in paragraph (2). own initiative or upon the written request of CONTROLS (2) RISK FACTORS.—The risk factors re- representatives of a substantial segment of Subtitle A—Authority and Procedures ferred to in paragraph (1), with respect to any industry which produces any items sub- each item, are as follows: ject to export controls under this Act or SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT CONTROLS. (A) The characteristics of the item. under the International Emergency Eco- (B) The threat, if any, to the United States nomic Powers Act, or being considered for (a) AUTHORITY.— (1) IN GENERAL.—In order to carry out the or the national security interest of the such controls, the Secretary may appoint ex- United States from the misuse or diversion port control advisory committees with re- purposes set forth in subsection (b), the President may, in accordance with the provi- of such item. spect to any such items. Each such com- (C) The controllability of the item. mittee shall consist of representatives of sions of this Act, prohibit, curtail, or require a license, or other authorization for the ex- (D) Any other risk factor the Secretary United States industry and Government, in- port of any item subject to the jurisdiction deems appropriate to consider. cluding the Department of Commerce and of the United States or exported by any per- SEC. 203. COUNTRY TIERS. other appropriate departments and agencies son subject to the jurisdiction of the United (a) IN GENERAL.— of the Government. The Secretary shall per- States. The President may also require rec- (1) ESTABLISHMENT AND ASSIGNMENT.—In mit the widest possible participation by the ordkeeping and reporting with respect to the administering export controls for national business community on the export control export of such item. security purposes under this title, the Presi- advisory committees. (2) EXERCISE OF AUTHORITY.—The authority dent shall, not later than 120 days after the (b) FUNCTIONS.— contained in this subsection shall be exer- date of enactment of this Act— (1) IN GENERAL.—Export control advisory cised by the Secretary, in consultation with (A) establish and maintain a country committees appointed under subsection (a) the Secretary of Defense, the intelligence tiering system in accordance with subsection shall advise and assist the Secretary, and agencies, and such other departments and (b); and any other department, agency, or official of agencies as the Secretary considers appro- (B) based on the assessments required the Government carrying out functions priate. under subsection (c), assign each country to under this Act, on actions (including all as- (b) PURPOSES.—The purposes of national a tier for each item or group of items the ex- pects of controls imposed or proposed) de- security export controls are the following: port of which is controlled for national secu- signed to carry out the provisions of this Act (1) To restrict the export of items that rity purposes under this title. concerning the items with respect to which would contribute to the military potential of (2) CONSULTATION.—The establishment and such export control advisory committees countries so as to prove detrimental to the assignment of country tiers under this sec- were appointed. national security of the United States or its tion shall be made after consultation with (2) OTHER CONSULTATIONS.—Nothing in allies. the Secretary, the Secretary of Defense, the paragraph (1) shall prevent the United States (2) To stem the proliferation of weapons of Secretary of State, the intelligence agencies, Government from consulting, at any time, mass destruction, and the means to deliver and such other departments and agencies as with any person representing an industry or them, and other significant military capa- the President considers appropriate. the general public, regardless of whether bilities by— (3) REDETERMINATION AND REVIEW OF AS- such person is a member of an export control (A) leading international efforts to control SIGNMENTS.—The President may redetermine advisory committee. Members of the public the proliferation of chemical and biological the assignment of a country to a particular shall be given a reasonable opportunity, pur- weapons, nuclear explosive devices, missile tier at any time and shall review and, as the suant to regulations prescribed by the Sec- delivery systems, key-enabling technologies, President considers appropriate, reassign retary, to present evidence to such commit- and other significant military capabilities; country tiers on an on-going basis. tees. (B) controlling involvement of United (4) EFFECTIVE DATE OF TIER ASSIGNMENT.— (c) REIMBURSEMENT OF EXPENSES.—Upon States persons in, and contributions by An assignment of a country to a particular the request of any member of any export United States persons to, foreign programs tier shall take effect on the date on which control advisory committee appointed under intended to develop weapons of mass destruc- notice of the assignment is published in the subsection (a), the Secretary may, if the Sec- tion, missiles, and other significant military Federal Register. retary determines it to be appropriate, reim- capabilities, and the means to design, test, (b) TIERS.— burse such member for travel, subsistence, develop, produce, stockpile, or use them; and (1) IN GENERAL.—The President shall estab- and other necessary expenses incurred by (C) implementing international treaties or lish a country tiering system consisting of 5 such member in connection with the duties other agreements or arrangements con- tiers for purposes of this section, ranging of such member. cerning controls on exports of designated from tier 1 through tier 5. (d) CHAIRPERSON.—Each export control ad- items, reports on the production, processing, (2) RANGE.—Countries that represent the visory committee appointed under sub- consumption, and exports and imports of lowest risk of diversion or misuse of an item section (a) shall elect a chairperson, and such items, and compliance with verification on the National Security Control List shall shall meet at least every 3 months at the programs. be assigned to tier 1. Countries that rep- call of the chairperson, unless the chair- (3) To deter acts of international ter- resent the highest risk of diversion or misuse person determines, in consultation with the rorism. of an item on the National Security Control other members of the committee, that such (c) END USE AND END USER CONTROLS.— List shall be assigned to tier 5. a meeting is not necessary to achieve the Notwithstanding any other provision of this (3) OTHER COUNTRIES.—Countries that fall purposes of this section. Each such com- title, controls may be imposed, based on the between the lowest and highest risk to the mittee shall be terminated after a period of end use or end user, on the export of any national security interest of the United 2 years, unless extended by the Secretary for item, that could materially contribute to the States with respect to the risk of diversion additional periods of 2 years each. The Sec- proliferation of weapons of mass destruction or misuse of an item on the National Secu- retary shall consult with each such com- or the means to deliver them. rity Control List shall be assigned to tier 2, mittee on such termination or extension of SEC. 202. NATIONAL SECURITY CONTROL LIST. 3, or 4, respectively, based on the assess- that committee. (a) ESTABLISHMENT OF LIST.— ments required under subsection (c).

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(c) ASSESSMENTS.—The President shall (A) are subject to the jurisdiction of the which a controlled country could acquire make an assessment of each country in as- United States; such item from sources within the United signing a country tier taking into consider- (B) are incorporated into the item; and States in the absence of export controls; and ation the following risk factors: (C) would, at the time of the reexport, re- (C) is available in sufficient quantity so (1) The present and potential relationship quire a license under this title if exported that the requirement of a license or other of the country with the United States. from the United States to a country to which authorization with respect to the export of (2) The present and potential relationship the item is to be reexported. such item is or would be ineffective. of the country with countries friendly to the SEC. 205. PETITION PROCESS FOR MODIFYING (2) MASS-MARKET STATUS.—The Secretary United States and with countries hostile to EXPORT STATUS. shall determine that an item has mass-mar- the United States. (a) ESTABLISHMENT.—The Secretary shall ket status under this subtitle, if the item (or (3) The country’s capabilities regarding establish a process for interested persons to a substantially identical or directly competi- chemical, biological, and nuclear weapons petition the Secretary to change the status tive item)— and the country’s membership in, and level of an item on the National Security Control (A) is produced and is available for sale in of compliance with, relevant multilateral ex- List. a large volume to multiple potential pur- port control regimes. (b) EVALUATIONS AND DETERMINATIONS.— chasers; (4) The country’s position regarding mis- Evaluations and determinations with respect (B) is widely distributed through normal sile systems and the country’s membership to a petition filed pursuant to this section commercial channels, such as retail stores, in, and level of compliance with, relevant shall be made in accordance with the proce- direct marketing catalogues, electronic com- multilateral export control regimes. dures set forth in section 202. merce, and other channels; (5) The country’s other military capabili- Subtitle B—Foreign Availability and Mass- (C) is conducive to shipment and delivery ties and the potential threat posed by the Market Status by generally accepted commercial means of country to the United States or its allies. transport; and (6) The effectiveness of the country’s ex- SEC. 211. DETERMINATION OF FOREIGN AVAIL- ABILITY AND MASS-MARKET STATUS. (D) may be used for its normal intended port control system. purpose without substantial and specialized (7) The level of the country’s cooperation (a) IN GENERAL.—The Secretary shall— (1) on a continuing basis, service provided by the manufacturer, dis- with United States export control enforce- tributor, or other third party. ment and other efforts. (2) upon a request from the Office of Tech- nology Evaluation, or (3) SPECIAL RULES.—For purposes of this (8) The risk of export diversion by the subtitle— country to a higher tier country. (3) upon receipt of a petition filed by an in- terested party, (A) SUBSTANTIALLY IDENTICAL ITEM.—The (9) The designation of the country as a determination of whether an item in relation country supporting international terrorism review and determine the foreign avail- ability and the mass-market status of any to another item is a substantially identical under section 310. item shall include a fair assessment of end- SEC. 204. INCORPORATED PARTS AND COMPO- item the export of which is controlled under this title. uses, the properties, nature, and quality of NENTS. the item. (a) EXPORT OF ITEMS CONTAINING CON- (b) PETITION AND CONSULTATION.—The Sec- (B) DIRECTLY COMPETITIVE ITEM.— TROLLED PARTS AND COMPONENTS.—Controls retary shall establish a process for an inter- (i) IN GENERAL.—The determination of may not be imposed under this title or any ested party to petition the Secretary for a whether an item in relation to another item other provision of law on an item solely be- determination that an item has a foreign is a directly competitive item shall include a cause the item contains parts or components availability or mass-market status. In evalu- subject to export controls under this title, if ating and making a determination with re- fair assessment of whether the item, al- the parts or components— spect to a petition filed under this section, though not substantially identical in its in- (1) are essential to the functioning of the the Secretary shall consult with the Sec- trinsic or inherent characteristics, is sub- item, retary of Defense and other appropriate Gov- stantially equivalent for commercial pur- (2) are customarily included in sales of the ernment agencies and with the Office of poses and may be adapted for substantially item in countries other than controlled Technology Evaluation (established pursu- the same uses. countries, and ant to section 214). (ii) EXCEPTION.—An item is not directly (3) comprise 25 percent or less of the total (c) RESULT OF DETERMINATION.— competitive with a controlled item if the value of the item, (1) IN GENERAL.—In any case in which the item is substantially inferior to the con- unless the item itself, if exported, would by Secretary determines, in accordance with trolled item with respect to characteristics virtue of the functional characteristics of procedures and criteria which the Secretary that resulted in the export of the item being the item as a whole make a significant con- shall by regulation establish, that an item controlled. tribution to the military or proliferation po- described in subsection (a) has— SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN tential of a controlled country or end user (A) a foreign availability status, or AVAILABILITY DETERMINATION. which would prove detrimental to the na- (B) a mass-market status, (a) CRITERIA FOR PRESIDENTIAL SET- tional security of the United States. the Secretary shall notify the President (and ASIDE.— (b) REEXPORTS OF FOREIGN-MADE ITEMS IN- other appropriate departments and agencies) (1) POTENTIAL FOR ELIMINATION.—If the CORPORATING UNITED STATES CONTROLLED and publish the notice of the determination President determines that— CONTENT.— in the Federal Register. The Secretary’s de- (A) the absence of export controls with re- (1) IN GENERAL.—No authority or permis- termination shall become final 30 days after sion may be required under this title to reex- the date the notice is published, the item spect to an item would prove detrimental to port to a country (other than a country des- shall be removed from the National Security the national security of the United States, ignated as a country supporting inter- Control List, and a license or other author- and national terrorism pursuant to section 310) ization shall not be required under this title (B) there is a high probability that the for- an item that is produced in a country other or under section 1211 of the National Defense eign availability status of an item will be than the United States and incorporates Authorization Act of Fiscal Year 1998 with eliminated through multilateral negotia- parts or components that are subject to the respect to the item, unless the President tions within a reasonable period of time tak- jurisdiction of the United States, if the value makes a determination described in section ing into account the characteristics of the of the controlled United States content of 212 or 213 with respect to the item in that 30- item, the item produced in such other country is 25 day period. the President may set aside the Secretary’s determination of foreign availability status percent or less of the total value of the item. (2) CONFORMING AMENDMENT.—Section with respect to the item. (2) REEXPORT TO CERTAIN TERRORIST COUN- 1211(d) of the National Defense Authorization (2) REPORT TO CONGRESS.—The President TRIES.—No authority or permission may be Act for Fiscal Year 1998 is amended in the required under this title to reexport to a second sentence by striking ‘‘180’’ and insert- shall promptly— country designated as a country supporting ing ‘‘60’’. (A) report any set-aside determination de- scribed in paragraph (1) to the Committee on international terrorism pursuant to section (d) CRITERIA FOR DETERMINING FOREIGN Banking, Housing, and Urban Affairs of the 310 an item that is produced in a country AVAILABILITY AND MASS-MARKET STATUS.— Senate and the Committee on International other than the United States and incor- (1) FOREIGN AVAILABILITY STATUS.—The porates parts or components that are subject Secretary shall determine that an item has Relations of the House of Representatives; to the jurisdiction of the United States, if foreign availability status under this sub- and the value of the controlled United States title, if the item (or a substantially identical (B) publish the determination in the Fed- content of the item produced in such other or directly competitive item)— eral Register. country is 10 percent or less of the total (A) is available to controlled countries (b) PRESIDENTIAL ACTION IN CASE OF SET- value of the item. from sources outside the United States, in- ASIDE.— (3) DEFINITION OF CONTROLLED UNITED cluding countries that participate with the (1) IN GENERAL.— STATES CONTENT.—For purposes of this para- United States in multilateral export con- (A) NEGOTIATIONS.—In any case in which graph, the term ‘‘controlled United States trols; export controls are maintained on an item content’’ of an item means those parts or (B) can be acquired at a price that is not because the President has made a determina- components that— excessive when compared to the price at tion under subsection (a), the President shall

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.142 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13699 actively pursue negotiations with the gov- International Relations of the House of Rep- President may, in accordance with the provi- ernments of the appropriate foreign coun- resentatives. sions of this Act, prohibit, curtail, or require tries for the purpose of eliminating such SEC. 214. OFFICE OF TECHNOLOGY EVALUATION. a license, other authorization, record- availability. (a) IN GENERAL.—The Secretary shall es- keeping, or reporting for the export of any (B) REPORT TO CONGRESS.—Not later than tablish in the Department of Commerce an item subject to the jurisdiction of the United the date the President begins negotiations, Office of Technology Evaluation (in this sub- States or exported by any person subject to the President shall notify in writing the title referred to as the ‘‘Office’’), which shall the jurisdiction of the United States. Committee on Banking, Housing, and Urban be under the direction of the Secretary. The (2) EXERCISE OF AUTHORITY.—The authority Affairs of the Senate and the Committee on Office shall be responsible for gathering and contained in this subsection shall be exer- International Relations of the House of Rep- analyzing all the necessary information in cised by the Secretary, in consultation with resentatives that the President has begun order for the Secretary to make determina- the Secretary of State and such other de- such negotiations and why the President be- tions of foreign availability and mass-mar- partments and agencies as the Secretary lieves it is important to the national secu- ket status under this Act. considers appropriate. rity that export controls on the item in- (b) RESPONSIBILITIES.—The Office shall be (b) PURPOSES.—The purposes of foreign pol- volved be maintained. responsible for— icy export controls are the following: (2) PERIODIC REVIEW OF DETERMINATION.— (1) conducting foreign availability assess- (1) To promote the foreign policy objec- The President shall review a determination ments to determine whether a controlled tives of the United States, consistent with described in subsection (a) at least every 6 item is available to controlled countries and the purposes of this section and the provi- months. Promptly after each review is com- whether requiring a license, or denial of a li- sions of this Act. pleted, the Secretary shall submit to the cense for the export of such item, is or would (2) To promote international peace, sta- committees of Congress referred to in para- be ineffective; bility, and respect for fundamental human graph (1)(B) a report on the results of the re- (2) conducting mass-market assessments to rights. view, together with the status of multilat- determine whether a controlled item is (3) To use export controls to deter and pun- eral negotiations to eliminate the foreign available to controlled countries because of ish acts of international terrorism and to en- availability of the item. the mass-market status of the item; courage other countries to take immediate (3) EXPIRATION OF PRESIDENTIAL SET- (3) monitoring and evaluating worldwide steps to prevent the use of their territories ASIDE.—A determination by the President de- technological developments in industry sec- or resources to aid, encourage, or give sanc- scribed in subsection (a) shall cease to apply tors critical to the national security inter- tuary to those persons involved in directing, with respect to an item on the earlier of— ests of the United States to determine for- supporting, or participating in acts of inter- (A) the date that is 6 months after the date eign availability and mass-market status of national terrorism. on which the determination is made under (c) EXCEPTION.—The President may not controlled items; subsection (a), if the President has not com- control under this title the export from a (4) monitoring and evaluating multilateral menced multilateral negotiations to elimi- foreign country (whether or not by a United export control regimes and foreign govern- nate the foreign availability of the item States person) of any item produced or origi- ment export control policies and practices within that 6-month period; nating in a foreign country that contains that affect the national security interests of (B) the date on which the negotiations de- parts or components produced or originating the United States; scribed in paragraph (1) have terminated in the United States. (5) conducting assessments of United without achieving an agreement to elimi- (d) CONTRACT SANCTITY.— States industrial sectors critical to the nate foreign availability; (1) IN GENERAL.—The President may not United States defense industrial base and (C) the date on which the President deter- prohibit the export of any item under this how the sectors are affected by technological mines that there is not a high probability of title if that item is to be exported— developments, technology transfers, and for- eliminating foreign availability of the item (A) in performance of a binding contract, eign competition; and through negotiation; or agreement, or other contractual commit- (6) conducting assessments of the impact of (D) the date that is 18 months after the ment entered into before the date on which United States export control policies on— date on which the determination described in the President reports to Congress the Presi- (A) United States industrial sectors crit- subsection (a) is made if the President has dent’s intention to impose controls on that ical to the national security interests of the been unable to achieve an agreement to item under this title; or United States; and eliminate foreign availability within that 18- (B) under a license or other authorization (B) the United States economy in general. month period. issued under this Act before the earlier of (c) REPORTS TO CONGRESS.—The Secretary (4) ACTION ON EXPIRATION OF PRESIDENTIAL the date on which the control is initially im- shall make available to the Committee on posed or the date on which the President re- SET-ASIDE.—Upon the expiration of a Presi- International Relations of the House of Rep- dential set-aside under paragraph (3) with re- ports to Congress the President’s intention resentatives and the Committee on Banking, to impose controls under this title. spect to an item, the Secretary shall not re- Housing, and Urban Affairs of the Senate as quire a license or other authorization to ex- (2) EXCEPTION.—The prohibition contained part of the Secretary’s annual report re- in paragraph (1) shall not apply in any case port the item. quired under section 801 information on the SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS- in which the President determines and cer- operations of the Office, and on improve- tifies to the Committee on Banking, Hous- MARKET STATUS DETERMINATION. ments in the Government’s ability to assess (a) CRITERIA FOR SET-ASIDE.—If the Presi- ing, and Urban Affairs of the Senate and the foreign availability and mass-market status, dent determines that— Committee on International Relations of the during the fiscal year preceding the report, (1) decontrolling or failing to control an House of Representatives that— including information on the training of per- item constitutes a serious threat to the na- (A) there is a serious threat to a foreign sonnel, and the use of Commercial Service tional security of the United States, and policy interest of the United States; Officers of the United States and Foreign (2) export controls on the item would be (B) the prohibition of exports under each Commercial Service to assist in making de- likely to diminish the threat to, and advance binding contract, agreement, commitment, terminations. The information shall also in- the national security interests of, the United license, or authorization will be directly in- clude a description of representative deter- States, strumental in remedying the situation pos- the President may set aside the Secretary’s minations made under this Act during the ing the serious threat; and determination of mass-market status with preceding fiscal year that foreign avail- (C) the export controls will be in effect respect to the item. ability or mass-market status did or did not only as long as the serious threat exists. (b) PRESIDENTIAL ACTION IN CASE OF SET- exist (as the case may be), together with an SEC. 302. PROCEDURES FOR IMPOSING CON- ASIDE.— explanation of the determinations. TROLS. (1) IN GENERAL.—In any case in which ex- (d) SHARING OF INFORMATION.—Each depart- (a) NOTICE.— port controls are maintained on an item be- ment or agency of the United States, includ- (1) INTENT TO IMPOSE FOREIGN POLICY EX- cause the President has made a determina- ing any intelligence agency, and all contrac- PORT CONTROL.—Except as provided in sec- tion under subsection (a), the President shall tors with any such department or agency, tion 306, not later than 45 days before impos- publish notice of the determination in the shall, consistent with the protection of intel- ing or implementing an export control under Federal Register not later than 30 days after ligence sources and methods, furnish infor- this title, the President shall publish in the the Secretary publishes notice of the Sec- mation to the Office concerning foreign Federal Register— retary’s determination that an item has availability and the mass-market status of (A) a notice of intent to do so; and mass-market status. items subject to export controls under this (B) provide for a period of not less than 30 (2) PERIODIC REVIEW OF DETERMINATION.— Act. days for any interested person to submit The President shall review a determination TITLE III—FOREIGN POLICY EXPORT comments on the export control proposed made under subsection (a) at least every 6 CONTROLS under this title. months. Promptly after each review is com- SEC. 301. AUTHORITY FOR FOREIGN POLICY EX- (2) PURPOSES OF NOTICE.—The purposes of pleted, the Secretary shall submit a report PORT CONTROLS. the notice are— on the results of the review to the Com- (a) AUTHORITY.— (A) to provide an opportunity for the for- mittee on Banking, Housing, and Urban Af- (1) IN GENERAL.—In order to carry out the mulation of an effective export control pol- fairs of the Senate and the Committee on purposes set forth in subsection (b), the icy under this title that advances United

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.142 pfrm01 PsN: S02PT1 S13700 CONGRESSIONAL RECORD — SENATE November 2, 1999 States economic and foreign policy interests; (7) the likely economic impact of the pro- President shall submit to the committees of and posed export control on the United States Congress referred to in subsection (b)(2)(A) a (B) to provide an opportunity for negotia- economy, United States international trade report on each export control that the Presi- tions to achieve the purposes set forth in and investment, and United States agricul- dent intends to renew. section 301(b). tural interests, commercial interests, and (2) FORM AND CONTENT OF REPORT.—The re- (b) NEGOTIATIONS.—During the 45-day pe- employment; and port may be provided on a classified basis if riod that begins on the date of notice de- (8) a conclusion that the probable achieve- the Secretary considers it necessary. Each scribed in subsection (a), the President may ment of the objectives of the proposed export report shall contain the following: negotiate with the government of the foreign control outweighs any likely costs to United (A) A clearly stated explanation of the spe- country against which the export control is States economic, foreign policy, humani- cific and compelling United States foreign proposed in order to resolve the reasons un- tarian, or national security interests, includ- policy objective that the existing export con- derlying the proposed export control. ing any potential harm to the United States trol was intended to achieve. (c) CONSULTATION.— agricultural and business firms and to the (B) An assessment of— (1) REQUIREMENT.—The President shall con- international reputation of the United (i) the extent to the which the existing ex- sult with the Committee on Banking, Hous- States as a reliable supplier of goods, serv- port control achieved its objectives before ing, and Urban Affairs of the Senate and the ices, or technology. renewal based on the objective criteria es- Committee on International Relations of the SEC. 305. IMPOSITION OF CONTROLS. tablished for evaluating the export control; House of Representatives regarding any ex- The President may impose an export con- and port control proposed under this title and trol under this title after the submission of (ii) the reasons why the existing export the efforts to achieve or increase multilat- the report required under section 304 and control has failed to fully achieve its objec- eral cooperation on the issues or problems publication in the Federal Register of a no- tives and, if renewed, how the export control underlying the proposed export control. tice of the imposition of the export control . will achieve that objective before the next (2) CLASSIFIED CONSULTATION.—The con- SEC. 306. DEFERRAL AUTHORITY. renewal year. sultations described in paragraph (1) may be (a) AUTHORITY.—The President may defer (C) An updated description and assessment conducted on a classified basis if the Sec- compliance with any requirement contained of— retary considers it necessary. in section 302(a), 304, or 305 in the case of a (i) each of the criteria described in section proposed export control if— 303, and SEC. 303. CRITERIA FOR FOREIGN POLICY EX- PORT CONTROLS. (1) the President determines that a deferral (ii) each matter required to be reported under section 304(b)(1) through (8). Each export control imposed by the Presi- of compliance with the requirement is in the (3) RENEWAL OF EXPORT CONTROL.—The dent under this title shall— national interest of the United States; and President may renew an export control (1) have clearly stated, specific, and com- (2) the requirement is satisfied not later than 60 days after the date on which the ex- under this title after submission of the re- pelling United States foreign policy objec- port control is imposed under this title. port described in paragraph (2) and publica- tives; (b) TERMINATION OF CONTROL.—An export tion of notice of renewal in the Federal Reg- (2) have objective standards for evaluating control with respect to which a deferral has ister. the success or failure of the export control; been made under subsection (a) shall termi- SEC. 308. TERMINATION OF CONTROLS UNDER (3) include an assessment by the President nate 60 days after the date the export control THIS TITLE. that— is imposed unless all requirements have been (a) IN GENERAL.—Notwithstanding any (A) the export control is likely to achieve satisfied before the expiration of the 60-day other provision of law, the President— such objectives and the expected time for period. (1) shall terminate any export control im- achieving the objectives; and SEC. 307. REVIEW, RENEWAL, AND TERMINATION. posed under this title if the President deter- (B) the achievement of the objectives of (a) RENEWAL AND TERMINATION.— mines that the control has substantially the export control outweighs any potential (1) IN GENERAL.—Any export control im- achieved the objective for which it was im- costs of the export control to other United posed under this title shall terminate on posed; and States economic, foreign policy, humani- March 31 of each renewal year unless the (2) may terminate any export control im- tarian, or national security interests; President renews the export control on or be- posed under this title that is not required by (4) be targeted narrowly; and fore such date. For purposes of this section, law at any time. (5) seek to minimize any adverse impact on the term ‘‘renewal year’’ means 2002 and (b) EXCEPTION.—Paragraphs (1) and (2) of the humanitarian activities of United States every 2 years thereafter. subsection (a) do not apply to any export and foreign nongovernmental organizations (2) EXCEPTION.—This section shall not control imposed under this title that is tar- in the country subject to the export control. apply to an export control imposed under geted against any country designated as a SEC. 304. PRESIDENTIAL REPORT BEFORE IMPO- this title that— country supporting international terrorism SITION OF CONTROL. (A) is required by law; pursuant to section 310. (a) REQUIREMENT.—Before imposing an ex- (B) is targeted against any country des- (c) EFFECTIVE DATE OF TERMINATION.—The port control under this title, the President ignated as a country supporting inter- termination of an export control pursuant to shall submit to the Committee on Banking, national terrorism pursuant to section 310; this section shall take effect on the date no- tice of the termination is published in the Housing, and Urban Affairs of the Senate and or Federal Register. the Committee on International Relations of (C) has been in effect for less than 1 year as the House of Representatives a report on the of February 1 of a renewal year. SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS. proposed export control. The report may be (b) REVIEW.— Notwithstanding any other provision of provided on a classified basis if the Sec- (1) IN GENERAL.—Not later than February 1 this Act setting forth limitations on author- retary considers it necessary. of each renewal year, the President shall re- ity to control exports and except as provided (b) CONTENT.—The report shall contain a view all export controls in effect under this in section 304, the President may impose description and assessment of each of the title. controls on exports to a particular country criteria described in section 303. In addition, (2) CONSULTATION.— or countries in order to fulfill obligations of the report shall contain a description and as- (A) REQUIREMENT.—Before completing a re- the United States under resolutions of the sessment of— view under paragraph (1), the President shall United Nations and under treaties, or other (1) any diplomatic and other steps that the consult with the Committee on Banking, international agreements and arrangements, United States has taken to accomplish the Housing, and Urban Affairs of the Senate and to which the United States is a party. intended objective of the proposed export the Committee on International Relations of SEC. 310. DESIGNATION OF COUNTRIES SUP- control; the House of Representative regarding each PORTING INTERNATIONAL TER- (2) unilateral export controls imposed, and export control that is being reviewed. RORISM. other measures taken, by other countries to (B) CLASSIFIED CONSULTATION.—The con- (a) LICENSE REQUIRED.—A license shall be achieve the intended objective of the pro- sultations may be conducted on a classified required for the export of an item to a coun- posed export control; basis if the Secretary considers it necessary. try if the Secretary of State has determined (3) the likelihood of multilateral adoption (3) PUBLIC COMMENT.—In conducting the re- that— of comparable export controls; view of each export control under paragraph (1) the government of such country has re- (4) alternative measures to promote the (1), the President shall provide a period of peatedly provided support for acts of inter- same objectives and the likelihood of their not less than 30 days for any interested per- national terrorism; and potential success; son to submit comments on renewal of the (2) the export of the item could make a sig- (5) any United States obligations under export control. The President shall publish nificant contribution to the military poten- international trade agreements, treaties, or notice of the opportunity for public com- tial of such country, including its military other international arrangements, with ment in the Federal Register not less than 45 logistics capability, or could enhance the which the proposed export control may con- days before the review is required to be com- ability of such country to support acts of flict; pleted. international terrorism. (6) the likelihood that the proposed export (c) REPORT TO CONGRESS.— (b) NOTIFICATION.—The Secretary and the control could lead to retaliation against (1) REQUIREMENT.—Before renewing an ex- Secretary of State shall notify the Com- United States interests; port control imposed under this title, the mittee on International Relations of the

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TERMINATION OF EXPORT CONTROLS information, and such time shall not be in- on Banking, Housing, and Urban Affairs and REQUIRED BY LAW. cluded in calculating the time periods pre- the Committee on Foreign Relations of the Notwithstanding any other provision of scribed in this title; Senate at least 30 days before issuing any li- law, the President shall terminate any ex- (ii) refer the application, through the use cense required by subsection (a). port control mandated by law on agricul- of a common data base or other means, and (c) DETERMINATIONS REGARDING REPEATED tural commodities, medicine, and medical all information submitted by the applicant, SUPPORT.—Each determination of the Sec- supplies upon the date of enactment of this and all necessary recommendations and retary of State under subsection (a)(1), in- Act except for a control that is specifically analyses by the Secretary to the Department cluding each determination in effect on the reimposed by law. of Defense and other departments and agen- date of the enactment of the Antiterrorism SEC. 403. EXCLUSIONS. cies as the Secretary considers appropriate; and Arms Export Amendments Act of 1989, Sections 401 and 402 do not apply to the fol- (iii) ensure that the classification stated shall be published in the Federal Register. lowing: on the application for the export items is (d) LIMITATIONS ON RESCINDING DETERMINA- (1) The export of agricultural commodities, correct; and TION.—A determination made by the Sec- medicine, and medical supplies that are sub- (iv) return the application if a license is retary of State under subsection (a)(1) may ject to national security export controls not required. not be rescinded unless the President sub- under title II. (B) REFERRAL NOT REQUIRED.—In the event mits to the Speaker of the House of Rep- (2) The export of agricultural commodities, that the head of a department or agency de- resentatives and the Chairman of the Com- medicine, and medical supplies to a country termines that certain types of applications mittee on Banking, Housing, and Urban Af- against which an embargo is in effect under need not be referred to the department or fairs and the Chairman of the Committee on the Trading With the Enemy Act. agency, such department or agency head Foreign Relations of the Senate— TITLE V—PROCEDURES FOR EXPORT LI- shall notify the Secretary of the specific (1) before the proposed rescission would CENSES AND INTERAGENCY DISPUTE types of such applications that the depart- take effect, a report certifying that— RESOLUTION ment or agency does not wish to review. (A) there has been a fundamental change in SEC. 501. EXPORT LICENSE PROCEDURES. (3) WITHDRAWAL OF APPLICATION.—An appli- the leadership and policies of the govern- (a) RESPONSIBILITY OF THE SECRETARY.— cant may, by written notice to the Sec- ment of the country concerned; (1) IN GENERAL.—All applications for a li- retary, withdraw an application at any time (B) that government is not supporting acts cense or other authorization to export a con- before final action. of international terrorism; and trolled item shall be filed in such manner (C) that government has provided assur- (c) ACTION BY OTHER DEPARTMENTS AND and include such information as the Sec- AGENCIES.— ances that it will not support acts of inter- retary may, by regulation, prescribe. national terrorism in the future; or (1) REFERRAL TO OTHER AGENCIES.—The (2) PROCEDURES.—In guidance and regula- Secretary shall promptly refer a license ap- (2) at least 45 days before the proposed re- tions that implement this section, the Sec- scission would take effect, a report justi- plication to the departments and agencies retary shall describe the procedures required under subsection (b) to make recommenda- fying the rescission and certifying that— by this section, the responsibilities of the (A) the government concerned has not pro- tions and provide information to the Sec- Secretary and of other departments and retary. vided any support for international ter- agencies in reviewing applications, the rorism during the preceding 6-month period; (2) RESPONSIBILITY OF REFERRAL DEPART- rights of the applicant, and other relevant MENTS AND AGENCIES.—The Department of and matters affecting the review of license appli- (B) the government concerned has provided Defense and other reviewing departments cations. and agencies shall take all necessary actions assurances that it will not support acts of (3) CALCULATION OF PROCESSING TIMES.—In international terrorism in the future. in a prompt and responsible manner on an calculating the processing times set forth in application. Each department or agency re- (e) INFORMATION TO BE INCLUDED IN NOTIFI- this title, the Secretary shall use calendar CATION.—The Secretary and the Secretary of viewing an application under this section days, except that if the final day for a re- shall establish and maintain records prop- State shall include in the notification re- quired action falls on a weekend or holiday, quired by subsection (b)— erly identifying and monitoring the status of that action shall be taken no later than the the matter referred to the department or (1) a detailed description of the item to be following business day. offered, including a brief description of the agency. (4) CRITERIA FOR EVALUATING APPLICA- capabilities of any item for which a license (3) ADDITIONAL INFORMATION REQUESTS.— TIONS.—In determining whether to grant an Each department or agency to which a li- to export is sought; application to export a controlled item (2) the reasons why the foreign country or cense application is referred shall specify to under this Act, the following criteria shall the Secretary any information that is not in international organization to which the ex- be considered: port or transfer is proposed to be made needs the application that would be required for (A) The characteristics of the controlled the department or agency to make a deter- the item which is the subject of such export item. or transfer and a description of the manner mination with respect to the application, (B) The threat to the United States or the and the Secretary shall promptly request in which such country or organization in- national security interests of the United tends to use the item; such information from the applicant. The States from the misuse of the item. time that may elapse between the date the (3) the reasons why the proposed export or (C) The risk of export diversion or misuse transfer is in the national interest of the information is requested by that department by— or agency and the date the information is re- United States; (i) the exporter; (4) an analysis of the impact of the pro- ceived by that department or agency shall (ii) the method of export; not be included in calculating the time peri- posed export or transfer on the military ca- (iii) the end-user; pabilities of the foreign country or inter- ods prescribed in this title. (iv) the country where the end-user is lo- (4) TIME PERIOD FOR ACTION BY REFERRAL national organization to which such export cated; and or transfer would be made; DEPARTMENTS AND AGENCIES.—Within 25 days (v) the end-use. after the Secretary refers an application (5) an analysis of the manner in which the (D) Risk mitigating factors including, but proposed export would affect the relative under this section, each department or agen- not limited to— cy to which an application has been referred military strengths of countries in the region (i) changing the characteristics of the con- to which the item which is the subject of shall provide the Secretary with a rec- trolled item; ommendation either to approve the license such export would be delivered and whether (ii) after-market monitoring by the ex- other countries in the region have com- or to deny the license. A recommendation porter; and that the Secretary deny a license shall in- parable kinds and amounts of the item; and (iii) post-shipment verification. (6) an analysis of the impact of the pro- clude a statement of reasons for the rec- (b) INITIAL SCREENING.— ommendation that are consistent with the posed export or transfer on the United States (1) UPON RECEIPT OF APPLICATION.—Upon re- relations with the countries in the region to provisions of this title, and shall cite both ceipt of an export license application, the the specific statutory and regulatory basis which the item which is the subject of such Secretary shall enter and maintain in the export would be delivered. for the recommendation. A department or records of the Department information re- agency that fails to provide a recommenda- TITLE IV—EXEMPTION FOR AGRICUL- garding the receipt and status of the applica- tion in accordance with this paragraph with- TURAL COMMODITIES, MEDICINE, AND tion. in that 25-day period shall be deemed to have MEDICAL SUPPLIES (2) INITIAL PROCEDURES.— no objection to the decision of the Secretary SEC. 401. EXEMPTION FOR AGRICULTURAL COM- (A) IN GENERAL.—Not later than 9 days on the application. MODITIES, MEDICINE, AND MEDICAL after receiving any license application, the SUPPLIES. Secretary shall— (d) ACTION BY THE SECRETARY.—Not later Notwithstanding any other provision of (i) contact the applicant if the application than 25 days after the date the application is law, the export controls imposed on items is improperly completed or if additional in- referred, the Secretary shall— under title III shall not apply to agricultural formation is required, and hold the applica- (1) if there is agreement among the referral commodities, medicine, and medical sup- tion for a reasonable time while the appli- departments and agencies to issue or deny plies. cant provides the necessary corrections or the license—

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(A) issue the license and ensure all appro- calculating the time periods prescribed in (1) INITIAL RESOLUTION.—The Secretary priate personnel in the Department (includ- this section: shall establish, select the chairperson of, and ing the Office of Export Enforcement) are (1) AGREEMENT OF THE APPLICANT.—Delays determine procedures for an interagency notified of all approved license applications; upon which the Secretary and the applicant committee to review initially all license ap- or mutually agree. plications described in subsection (a) with (B) notify the applicant of the intention to (2) PRELICENSE CHECKS.—A prelicense respect to which the Secretary and any of deny the license; or check (for a period not to exceed 60 days) the referral departments and agencies are (2) if there is no agreement among the re- that may be required to establish the iden- not in agreement. The chairperson shall con- ferral departments and agencies, notify the tity and reliability of the recipient of items sider the positions of all the referral depart- applicant that the application is subject to controlled under this Act, if— ments and agencies (which shall be included the interagency dispute resolution process. (A) the need for the prelicense check is de- in the minutes described subsection (c)(2)) (e) CONSEQUENCES OF APPLICATION DE- termined by the Secretary or by another de- and make a decision on the license applica- NIAL.— partment or agency in any case in which the tion, including appropriate revisions or con- (1) IN GENERAL.—If a determination is request for the prelicense check is made by ditions thereto. made to deny a license, the applicant shall such department or agency; (2) FURTHER RESOLUTION.—The President be informed in writing by the Secretary of— (B) the request for the prelicense check is shall establish additional levels for review or (A) the determination; initiated by the Secretary within 5 days appeal of any matter that cannot be resolved (B) the specific statutory and regulatory after the determination that the prelicense pursuant to the process described in para- bases for the proposed denial; check is required; and graph (1). Each such review shall— (C) what, if any, modifications to, or re- (C) the analysis of the result of the (A) provide for decision-making based on strictions on, the items for which the license prelicense check is completed by the Sec- the majority vote of the participating de- was sought would allow such export to be retary within 5 days. partments and agencies; compatible with export controls imposed (3) REQUESTS FOR GOVERNMENT-TO-GOVERN- (B) provide that a department or agency under this Act, and which officer or em- MENT ASSURANCES.—Any request by the Sec- that fails to take a timely position, citing ployee of the Department would be in a posi- retary or another department or agency for the specific statutory and regulatory bases tion to discuss modifications or restrictions government-to-government assurances of for a denial, shall be deemed to have no ob- with the applicant and the specific statutory suitable end-uses of items approved for ex- jection to the pending decision; port, when failure to obtain such assurances and regulatory bases for imposing such (C) provide that any decision of an inter- would result in rejection of the application, modifications or restrictions; agency committee established under para- if— (D) to the extent consistent with the na- graph (1) or interagency dispute resolution (A) the request for such assurances is sent tional security and foreign policy interests process established under this paragraph to the Secretary of State within 5 days after of the United States, the specific consider- may be escalated to the next higher level of the determination that the assurances are ations that led to the determination to deny review at the request of any representative required; the application; and of a department or agency that participated (B) the Secretary of State initiates the re- (E) the availability of appeal procedures. in the interagency committee or dispute res- quest of the relevant government within 10 (2) PERIOD FOR APPLICANT TO RESPOND.— olution process that made the decision; and The applicant shall have 20 days from the days thereafter; and (D) ensure that matters are resolved or re- date of the notice of intent to deny the appli- (C) the license is issued within 5 days after ferred to the President not later than 90 days cation to respond in a manner that addresses the Secretary receives the requested assur- after the date the completed license applica- and corrects the reasons for the denial. If the ances. tion is referred by the Secretary. XCEPTION.—Whenever a prelicense applicant does not adequately address or cor- (4) E check described in paragraph (2) or assur- (c) FINAL ACTION.— rect the reasons for denial or does not re- ances described in paragraph (3) are not re- (1) IN GENERAL.—Once a final decision is spond, the license shall be denied. If the ap- quested within the time periods set forth made under subsection (b), the Secretary plicant does address or correct the reasons therein, then the time expended for such shall promptly— for denial, the application shall receive con- prelicense check or assurances shall be in- (A) issue the license and ensure that all ap- sideration in a timely manner. cluded in calculating the time periods estab- propriate personnel in the Department (in- (f) APPEALS AND OTHER ACTIONS BY APPLI- lished by this section. cluding the Office of Export Enforcement) CANT.— (5) MULTILATERAL REVIEW.—Multilateral are notified of all approved license applica- (1) IN GENERAL.—The Secretary shall estab- review of a license application to the extent tions; or lish appropriate procedures for an applicant that such multilateral review is required by (B) notify the applicant of the intention to to appeal to the Secretary the denial of an a relevant multilateral regime. deny the application. application or other administrative action (6) CONGRESSIONAL NOTIFICATION.—Such (2) MINUTES.—The interagency committee under this Act. In any case in which the Sec- time as is required for mandatory congres- and each level of the interagency dispute res- retary intends to reverse the decision with sional notifications under this Act. olution process shall keep reasonably de- respect to the application, the appeal under (7) CONSULTATIONS.—Consultation with tailed minutes of all meetings. On each mat- this subsection shall be handled in accord- other governments, if such consultation is ter before the interagency committee or be- ance with the interagency dispute resolution provided for by a relevant multilateral re- fore any other level of the interagency dis- process. gime as a precondition for approving a li- pute resolution process in which members (2) ENFORCEMENT OF TIME LIMITS.— cense. disagree, each member shall clearly state (A) IN GENERAL.—In any case in which an (h) CLASSIFICATION REQUESTS AND OTHER the reasons for the member’s position and action prescribed in this section is not taken INQUIRIES.— the reasons shall be entered in the minutes. on an application within the time period es- (1) CLASSIFICATION REQUESTS.—In any case tablished by this section (except in the case in which the Secretary receives a written re- TITLE VI—INTERNATIONAL ARRANGE- of a time period extended under subsection quest asking for the proper classification of MENTS; FOREIGN BOYCOTTS; SANC- (g) of which the applicant is notified), the ap- an item on the Control List or the applica- TIONS; AND ENFORCEMENT plicant may file a petition with the Sec- bility of licensing requirements under this SEC. 601. INTERNATIONAL ARRANGEMENTS. retary requesting compliance with the re- title, the Secretary shall promptly notify quirements of this section. When such peti- the Secretary of Defense and other depart- (a) MULTILATERAL EXPORT CONTROL RE- tion is filed, the Secretary shall take imme- ments and agencies the Secretary considers GIMES.— diate steps to correct the situation giving appropriate. The Secretary shall, within 14 (1) POLICY.—It is the policy of the United rise to the petition and shall immediately days after receiving the request, inform the States to seek multilateral arrangements notify the applicant of such steps. person making the request of the proper that support the national security objectives (B) BRINGING COURT ACTION.—If, within 20 classification. of the United States (as described in title II) days after a petition is filed under subpara- (2) OTHER INQUIRIES.—In any case in which and that establish fairer and more predict- graph (A), the processing of the application the Secretary receives a written request for able competitive opportunities for United has not been brought into conformity with information under this Act, the Secretary States exporters. the requirements of this section, or the proc- shall, within 30 days after receiving the re- (2) PARTICIPATION IN EXISTING REGIMES.— essing of the application has been brought quest, reply with that information to the Congress encourages the United States to into conformity with such requirements but person making the request. continue its active participation in and to the Secretary has not so notified the appli- SEC. 502. INTERAGENCY DISPUTE RESOLUTION strengthen existing multilateral export con- cant, the applicant may bring an action in PROCESS. trol regimes. an appropriate United States district court (a) IN GENERAL.—All license applications (3) PARTICIPATION IN NEW REGIMES.—It is for an order requiring compliance with the on which agreement cannot be reached shall the policy of the United States to participate time periods required by this section. be referred to the interagency dispute resolu- in additional multilateral export control re- (g) EXCEPTIONS FROM REQUIRED TIME PERI- tion process for decision. gimes if such participation would serve the ODS.—The following actions related to proc- (b) INTERAGENCY DISPUTE RESOLUTION national security interests of the United essing an application shall not be included in PROCESS.— States.

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(b) ANNUAL REPORT ON MULTILATERAL EX- (B) approve exports to a particular end (E) Any countries, end uses, or end users PORT CONTROL REGIMES.—Not later than Feb- user to which the United States has denied that are subject to the export controls of the ruary 1 of each year, the President shall sub- export license for a similar item. regime. mit to the Committee on Banking, Housing, (d) STANDARDS FOR NATIONAL EXPORT CON- (F) Rules of interpretation. and Urban Affairs of the Senate and the TROL SYSTEMS.—The President shall take (G) Major policy actions. Committee on International Relations of the steps to attain the cooperation of members (H) The rules and procedures of the regime House of Representatives a report evaluating of each regime in implementing effective na- for establishing and modifying any matter the effectiveness of each multilateral export tional export control systems containing the described in subparagraphs (A) through (G) control regime, including an assessment of following features: and for reviewing export license applica- the steps undertaken pursuant to sub- (1) EXPORT CONTROL LAW.—Enforcement au- tions. sections (c) and (d). The report, or any part thority, civil and criminal penalties, and (2) NEW REGIMES.—Not later than 60 days of this report, may be submitted in classified statutes of limitations are sufficient to deter after the United States joins or organizes a form to the extent the Secretary considers potential violations and punish violators new multilateral export control regime, the necessary. under the member’s export control law. Secretary shall, to the extent not incon- (2) LICENSE APPROVAL PROCESS.—The sys- sistent with arrangements under the regime (c) STANDARDS FOR MULTILATERAL EXPORT tem for evaluating export license applica- or with the national interest, publish in the CONTROL REGIMES.—The President shall take tions includes sufficient technical expertise Federal Register the information described steps to establish the following features in to assess the licensing status of exports and in subparagraphs (A) through (H) of para- any multilateral export control regime in ensure the reliability of end users. graph (1) with respect to the regime. which the United States is participating or (3) ENFORCEMENT.—The enforcement mech- (3) PUBLICATION OF CHANGES.—Not later may participate: anism provides authority for trained enforce- than 60 days after a multilateral export con- (1) FULL MEMBERSHIP.—All supplier coun- ment officers to investigate and prevent ille- trol regime adopts any change in the infor- tries are members of the regime, and the gal exports. mation published under this subsection, the policies and activities of the members are (4) DOCUMENTATION.—There is a system of Secretary shall, to the extent not incon- consistent with the objectives and member- export control documentation and sistent with the arrangements under the re- ship criteria of the multilateral export con- verification with respect to controlled items. gime or the national interest, publish such trol regime. (5) INFORMATION.—There are procedures for changes in the Federal Register. (2) EFFECTIVE ENFORCEMENT AND COMPLI- the coordination and exchange of informa- (g) SUPPORT OF OTHER COUNTRIES’ EXPORT ANCE.—The regime promotes enforcement tion concerning licensing, end users, and en- CONTROL SYSTEMS.—The Secretary is encour- and compliance with the regime’s rules and forcement with other members of the multi- aged to continue to— guidelines. lateral export control regime. (1) participate in training of, and provide (3) PUBLIC UNDERSTANDING.—The regime (6) RESOURCES.—The member has devoted training to, officials of other countries on makes an effort to enhance public under- adequate resources to administer effectively the principles and procedures for imple- standing of the purpose and procedures of the authorities, systems, mechanisms, and menting effective export controls; and the multilateral export control regime. procedures described in paragraphs (1) (2) participate in any such training pro- (4) EFFECTIVE IMPLEMENTATION PROCE- through (5). vided by other departments and agencies of DURES.—The multilateral export control re- (e) OBJECTIVES REGARDING MULTILATERAL the United States. gime has procedures for the implementation EXPORT CONTROL REGIMES.—The President SEC. 602. FOREIGN BOYCOTTS. of its rules and guidelines through uniform shall seek to achieve the following objectives (a) PURPOSES.—The purposes of this section and consistent interpretations of its export with regard to multilateral export control are as follows: controls. regimes: (1) To counteract restrictive trade prac- (5) ENHANCED COOPERATION WITH REGIME (1) STRENGTHEN EXISTING REGIMES.— tices or boycotts fostered or imposed by for- NONMEMBERS.—There is agreement among Strengthen existing multilateral export con- eign countries against other countries the members of the multilateral export con- trol regimes— friendly to the United States or against any trol regime to— (A) by creating a requirement to share in- United States person. (A) cooperate with governments outside formation about export license applications (2) To encourage and, in specified cases, re- the regime to restrict the export of items among members before a member approves quire United States persons engaged in the controlled by such regime; and an export license; and export of items to refuse to take actions, in- (B) establish an ongoing mechanism in the (B) harmonizing national export license cluding furnishing information or entering regime to coordinate planning and imple- approval procedures and practices, including into or implementing agreements, which mentation of export control measures re- the elimination of undercutting. have the effect of furthering or supporting lated to such cooperation. (2) REVIEW AND UPDATE.—Review and up- the restrictive trade practices or boycotts (6) PERIODIC HIGH-LEVEL MEETINGS.—There date multilateral regime export control lists fostered or imposed by any foreign country are regular periodic meetings of high-level with other members, taking into account— against a country friendly to the United representatives of the governments of mem- (A) national security concerns; States or against any United States person. bers of the multilateral export control re- (B) the controllability of items; and (b) PROHIBITIONS AND EXCEPTIONS.— gime for the purpose of coordinating export (C) the costs and benefits of controls. (1) PROHIBITIONS.—In order to carry out the control policies and issuing policy guidance (3) ENCOURAGE COMPLIANCE BY NONMEM- purposes set forth in subsection (a), the to members of the regime. BERS.—Encourage nonmembers of the multi- President shall issue regulations prohibiting (7) COMMON LIST OF CONTROLLED ITEMS.— lateral export control regime— any United States person, with respect to There is agreement on a common list of (A) to strengthen their national export that person’s activities in the interstate or items controlled by the multilateral export control regimes and improve enforcement; foreign commerce of the United States, from control regime. (B) to adhere to the appropriate multilat- taking or knowingly agreeing to take any of (8) REGULAR UPDATES OF COMMON LIST.— eral export control regime; and the following actions with intent to comply There is a procedure for removing items (C) not to undermine an existing multilat- with, further, or support any boycott fos- from the list of controlled items when the eral export control regime by exporting con- tered or imposed by a foreign country control of such items no longer serves the trolled items in a manner inconsistent with against a country that is friendly to the objectives of the members of the multilat- the guidelines of the regime. United States and is not itself the object of eral export control regime. (f) TRANSPARENCY OF MULTILATERAL EX- any form of boycott pursuant to United (9) TREATMENT OF CERTAIN COUNTRIES.— PORT CONTROL REGIMES.— States law or regulation: There is agreement to prevent the export or (1) PUBLICATION OF INFORMATION ON EACH (A) Refusing, or requiring any other person diversion of the most sensitive items to EXISTING REGIME.—Not later than 120 days to refuse, to do business with or in the boy- countries whose activities are threatening to after the date of enactment of this Act, the cotted country, with any business concern the national security of the United States or Secretary shall, for each multilateral export organized under the laws of the boycotted its allies. control regime (to the extent that it is not country, with any national or resident of the (10) HARMONIZATION OF LICENSE APPROVAL inconsistent with the arrangements of that boycotted country, or with any other person, PROCEDURES.—There is harmonization among regime or with the national interest), pub- pursuant to an agreement with, or require- the members of the regime of their national lish in the Federal Register the following in- ment of, or a request from or on behalf of the export license approval procedures and prac- formation with respect to the regime: boycotting country (subject to the condition tices. (A) The purposes of the regime. that the intent required to be associated (11) UNDERCUTTING.—There is a limit with (B) The members of the regime. with such an act in order to constitute a vio- respect to when members of a multilateral (C) The export licensing policy of the re- lation of the prohibition is not indicated export control regime— gime. solely by the mere absence of a business rela- (A) grant export licenses for any item that (D) The items that are subject to export tionship with or in the boycotted country, is substantially identical to or directly com- controls under the regime, together with all with any business concern organized under petitive with an item controlled pursuant to public notes, understandings, and other as- the laws of the boycotted country, with any the regime, where the United States has de- pects of the agreement of the regime, and all national or resident of the boycotted coun- nied an export license for such item, or changes thereto. try, or with any other person).

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.143 pfrm01 PsN: S02PT1 S13704 CONGRESSIONAL RECORD — SENATE November 2, 1999 (B) Refusing, or requiring any other person under the laws of the boycotted country, or bia, or any of the territories or possessions to refuse, to employ or otherwise discrimi- to any national or resident of the boycotted of the United States, or of any governmental nate against any United States person on the country; subdivision thereof; and basis of the race, religion, sex, or national (E) compliance by an individual, or agree- (2) pertains to participation in, compliance origin of that person or of any owner, officer, ment by an individual to comply, with the with, implementation of, or the furnishing of director, or employee of such person. immigration or passport requirements of any information regarding restrictive trade prac- (C) Furnishing information with respect to country with respect to such individual or tices or boycotts fostered or imposed by for- the race, religion, sex, or national origin of any member of such individual’s family or eign countries against other countries. any United States person or of any owner, of- with requests for information regarding re- SEC. 603. PENALTIES. ficer, director, or employee of such person. quirements of employment of such indi- (a) CRIMINAL PENALTIES.— (D) Furnishing information (other than vidual within the boycotting country; and (1) VIOLATIONS BY AN INDIVIDUAL.—Any in- furnishing normal business information in a (F) compliance by a United States person dividual who knowingly violates, conspires commercial context, as defined by the Sec- resident in a foreign country, or agreement to violate, or attempts to violate any provi- retary) about whether any person has, has by such a person to comply, with the laws of sion of this Act or any regulation, license, or had, or proposes to have any business rela- the country with respect to the person’s ac- order issued under this Act shall be fined up tionship (including a relationship by way of tivities exclusively therein, and such regula- to 10 times the value of the exports involved sale, purchase, legal or commercial represen- tions may contain exceptions for such resi- or $1,000,000, whichever is greater, impris- tation, shipping or other transport, insur- dent complying with the laws or regulations oned for not more than 10 years, or both, for ance, investment, or supply) with or in the of the foreign country governing imports each violation, except that the term of im- boycotted country, with any business con- into such country of trademarked, trade- prisonment may be increased to life for mul- cern organized under the laws of the boy- named, or similarly specifically identifiable tiple violations or aggravated cir- cotted country, with any national or resi- products, or components of products for such cumstances. dent of the boycotted country, or with any person’s own use, including the performance (2) VIOLATIONS BY A PERSON OTHER THAN AN other person that is known or believed to be of contractual services within that country. INDIVIDUAL.—Any person other than an indi- restricted from having any business relation- (3) LIMITATION ON EXCEPTIONS.—Regula- vidual who knowingly violates, conspires to ship with or in the boycotting country. tions issued pursuant to paragraphs (2)(C) violate, or attempts to violate any provision (E) Furnishing information about whether and (2)(F) shall not provide exceptions from of this Act or any regulation, license, or any person is a member of, has made a con- paragraphs (1)(B) and (1)(C). order issued under this Act shall be fined up tribution to, or is otherwise associated with (4) ANTITRUST AND CIVIL RIGHTS LAWS NOT to 10 times the value of the exports involved or involved in the activities of any chari- AFFECTED.—Nothing in this subsection may or $10,000,000, whichever is greater, for each table or fraternal organization which sup- be construed to supersede or limit the oper- violation. ports the boycotted country. ation of the antitrust or civil rights laws of (b) FORFEITURE OF PROPERTY INTEREST AND (F) Paying, honoring, confirming, or other- the United States. PROCEEDS.— wise implementing a letter of credit which (5) EVASION.—This section applies to any (1) FORFEITURE.—Any person who is con- contains any condition or requirement the transaction or activity undertaken by or victed under paragraph (1) or (2) of sub- compliance with which is prohibited by regu- through a United States person or any other section (a) shall, in addition to any other lations issued pursuant to this paragraph, person with intent to evade the provisions of penalty, forfeit to the United States— and no United States person shall, as a result this section or the regulations issued pursu- (A) any of that person’s security or other of the application of this paragraph, be obli- ant to this subsection. The regulations interest in, claim against, or property or gated to pay or otherwise honor or imple- issued pursuant to this section shall ex- contractual rights of any kind in the tan- ment such letter of credit. pressly provide that the exceptions set forth gible items that were the subject of the vio- (2) EXCEPTIONS.—Regulations issued pursu- in paragraph (2) do not permit activities or lation; ant to paragraph (1) shall provide exceptions agreements (expressed or implied by a course (B) any of that person’s security or other for— of conduct, including a pattern of responses) interest in, claim against, or property or (A) compliance, or agreement to comply, that are otherwise prohibited, pursuant to contractual rights of any kind in the tan- with requirements— the intent of such exceptions. gible property that was used in the export or (i) prohibiting the import of items from (c) ADDITIONAL REGULATIONS AND RE- attempt to export that was the subject of the the boycotted country or items produced or PORTS.— violation; and provided, by any business concern organized (1) REGULATIONS.—In addition to the regu- (C) any of that person’s property consti- under the laws of the boycotted country or lations issued pursuant to subsection (b), tuting, or derived from, any proceeds ob- by nationals or residents of the boycotted regulations issued pursuant to title III shall tained directly or indirectly as a result of country; or implement the purposes set forth in sub- the violation. (ii) prohibiting the shipment of items to section (a). (2) PROCEDURES.—The procedures in any the boycotting country on a carrier of the (2) REPORTS BY UNITED STATES PERSONS.— forfeiture under this subsection, and the du- boycotted country or by a route other than The regulations shall require that any ties and authority of the courts of the United that prescribed by the boycotting country or United States person receiving a request to States and the Attorney General with re- the recipient of the shipment; furnish information, enter into or implement spect to any forfeiture action under this sub- (B) compliance, or agreement to comply, an agreement, or take any other action re- section, or with respect to any property that with import and shipping document require- ferred to in subsection (a) shall report that may be subject to forfeiture under this sub- ments with respect to the country of origin, request to the Secretary, together with any section, shall be governed by the provisions the name of the carrier and route of ship- other information concerning the request of chapter 46 of title 18, United States Code, ment, the name of the supplier of the ship- that the Secretary determines appropriate. to the same extent as property subject to ment, or the name of the provider of other The person shall also submit to the Sec- forfeiture under that chapter. services, except that, for purposes of apply- retary a statement regarding whether the (c) CIVIL PENALTIES; ADMINISTRATIVE SANC- ing any exception under this subparagraph, person intends to comply, and whether the TIONS.— no information knowingly furnished or con- person has complied, with the request. Any (1) CIVIL PENALTIES.—The Secretary may veyed in response to such requirements may report filed pursuant to this paragraph shall impose a civil penalty of up to $1,000,000 for be stated in negative, blacklisting, or simi- be made available promptly for public in- each violation of a provision of this Act or lar exclusionary terms, other than with re- spection and copying, except that informa- any regulation, license, or order issued under spect to carriers or route of shipment as may tion regarding the quantity, description, and this Act. A civil penalty under this para- be permitted by such regulations in order to value of any item to which such report re- graph may be in addition to, or in lieu of, comply with precautionary requirements lates may be treated as confidential if the any other liability or penalty which may be protecting against war risks and confisca- Secretary determines that disclosure of that imposed for such a violation. tion; information would place the United States (2) DENIAL OF EXPORT PRIVILEGES.—The (C) compliance, or agreement to comply, in person involved at a competitive disadvan- Secretary may deny the export privileges of the normal course of business with the uni- tage. The Secretary shall periodically trans- any person, including the suspension or rev- lateral and specific selection by a boycotting mit summaries of the information contained ocation of the authority of such person to country, or a national or resident thereof, or in the reports to the Secretary of State for export or receive United States-origin items carriers, insurers, suppliers of services to be such action as the Secretary of State, in con- subject to this Act, for a violation of a provi- performed within the boycotting country, or sultation with the Secretary, considers ap- sion of this Act or any regulation, license, or specific items which, in the normal course of propriate to carry out the purposes set forth order issued under this Act. business, are identifiable by source when im- in subsection (a). (3) EXCLUSION FROM PRACTICE.—The Sec- ported into the boycotting country; (d) PREEMPTION.—The provisions of this retary may exclude any person acting as an (D) compliance, or agreement to comply, section and the regulations issued under this attorney, accountant, consultant, freight with export requirements of the boycotting section shall preempt any law, rule, or regu- forwarder, or in any other representative ca- country relating to shipment or trans- lation that— pacity from participating before the Depart- shipment of exports to the boycotted coun- (1) is a law, rule, or regulation of any of ment with respect to a license application or try, to any business concern of or organized the several States or the District of Colum- any other matter under this Act.

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(d) PAYMENT OF CIVIL PENALTIES.— which such person had an interest at the section (a) shall apply to the foreign person (1) PAYMENT AS CONDITION OF FURTHER EX- time of the conviction. committing the violation, as well as to any PORT PRIVILEGES.—The payment of a civil (2) RELATED PERSONS.—The Secretary may parent, affiliate, subsidiary, and successor penalty imposed under subsection (c) may be exercise the authority under paragraph (1) entity of the foreign person, and, except as made a condition for the granting, restora- with respect to any person related through provided in subsection (c), are as follows: tion, or continuing validity of any export li- affiliation, ownership, control, or position of (1) A prohibition on contracting with, and cense, permission, or privilege granted or to responsibility to a person convicted of any the procurement of products and services be granted to the person upon whom such violation of a law set forth in paragraph (1) from, a sanctioned person, by any depart- penalty is imposed. The period for which the upon a showing of such relationship with the ment, agency, or instrumentality of the payment of a penalty may be made such a convicted person. The Secretary shall make United States Government. condition may not exceed 1 year after the such showing only after providing notice and (2) A prohibition on the importation into date on which the payment is due. opportunity for a hearing. the United States of all items produced by a (2) DEFERRAL OR SUSPENSION.— (g) STATUTE OF LIMITATIONS.— sanctioned person. (A) IN GENERAL.—The payment of a civil (1) IN GENERAL.—Except as provided in (c) EXCEPTIONS.—The President shall not penalty imposed under subsection (c) may be paragraph (2), a proceeding in which a civil apply sanctions under this section— deferred or suspended in whole or in part for penalty or other administrative sanction (1) in the case of procurement of defense a period no longer than any probation period (other than a temporary denial order) is items— (which may exceed 1 year) that may be im- sought under subsection (c) may not be insti- (A) under existing contracts or sub- posed upon the person on whom the penalty tuted more than 5 years after the later of the contracts, including the exercise of options is imposed. date of the alleged violation or the date of for production quantities to satisfy United (B) NO BAR TO COLLECTION OF PENALTY.—A discovery of the alleged violation. States operational military requirements; deferral or suspension under subparagraph (2) EXCEPTION.— (B) if the President determines that the (A) shall not operate as a bar to the collec- (A) TOLLING.—In any case in which a crimi- foreign person or other entity to which the tion of the penalty concerned in the event nal indictment alleging a violation under sanctions would otherwise be applied is a that the conditions of the suspension, defer- subsection (a) is returned within the time sole source supplier of essential defense ral, or probation are not fulfilled. limits prescribed by law for the institution items and no alternative supplier can be (3) TREATMENT OF PAYMENTS.—Any amount of such action, the limitation under para- identified; or paid in satisfaction of a civil penalty im- graph (1) for bringing a proceeding to impose (C) if the President determines that such posed under subsection (c) shall be covered a civil penalty or other administrative sanc- items are essential to the national security into the Treasury as miscellaneous receipts tion under this section shall, upon the return under defense coproduction agreements; except as set forth in section 607(h). of the criminal indictment, be tolled against (2) in any case in which such sanctions all persons named as a defendant. (e) REFUNDS.— would violate United States international (B) DURATION.—The tolling of the limita- (1) AUTHORITY.— obligations including treaties, agreements, tion with respect to a defendant under sub- (A) IN GENERAL.—The Secretary may, in or understandings; or the Secretary’s discretion, refund any civil paragraph (A) as a result of a criminal in- (3) to— penalty imposed under subsection (c) on the dictment shall continue for a period of 6 (A) items provided under contracts or ground of a material error of fact or law in months from the date on which the convic- other binding agreements (as such terms are imposition of the penalty. tion of the defendant becomes final, the in- defined by the President in regulations) en- dictment against the defendant is dismissed, (B) LIMITATION.—A civil penalty may not tered into before the date on which the be refunded under subparagraph (A) later or the criminal action has concluded. President notifies Congress of the intention (h) VIOLATIONS DEFINED BY REGULATION.— than 2 years after payment of the penalty. to impose the sanctions; Nothing in this section shall limit the au- (2) PROHIBITION ON ACTIONS FOR REFUND.— (B) after-market service and replacement thority of the Secretary to define by regula- Notwithstanding section 1346(a) of title 28, parts including upgrades; tion violations under this Act. United States Code, no action for the refund (C) component parts, but not finished prod- (i) CONSTRUCTION.—Nothing in subsection ucts, essential to United States products or of any civil penalty referred to in paragraph (c), (d), (e), (f), or (g) limits— (1) may be maintained in any court. productions; or (1) the availability of other administrative (D) information and technology. (f) EFFECT OF OTHER CONVICTIONS.— or judicial remedies with respect to a viola- (d) EXCLUSION.—The President shall not (1) DENIAL OF EXPORT PRIVILEGES.—Any tion of a provision of this Act, or any regula- apply sanctions under this section to a par- person convicted of a violation of— tion, order, or license issued under this Act; ent, affiliate, subsidiary, and successor enti- (A) a provision of this Act or the Export (2) the authority to compromise and settle ty of a foreign person if the President deter- Administration Act of 1979, administrative proceedings brought with re- mines that— (B) a provision of the International Emer- spect to any such violation; or (1) the parent, affiliate, subsidiary, or suc- gency Economic Powers Act (50 U.S.C. 1701 (3) the authority to compromise, remit, or cessor entity (as the case may be) has not et seq.), mitigate seizures and forfeitures pursuant to knowingly violated the export control regu- (C) section 793, 794, or 798 of title 18, United section 1(b) of title VI of the Act of June 15, lation violated by the foreign person; and States Code, 1917 (22 U.S.C. 401(b)). (2) the government of the country with ju- (D) section 4(b) of the Internal Security SEC. 604. MULTILATERAL EXPORT CONTROL RE- risdiction over the parent, affiliate, sub- Act of 1950 (50 U.S.C. 783(b)), GIME VIOLATION SANCTIONS. sidiary, or successor entity had in effect, at (E) section 38 of the Arms Export Control (a) IMPOSITION OF SANCTIONS.— the time of the violation by the foreign per- Act (22 U.S.C. 2778), (1) IN GENERAL.—The President, subject to son, an effective export control system con- (F) section 16 of the Trading with the subsection (c), shall apply sanctions under sistent with principles set forth in section Enemy Act (50 U.S.C. App. 16), subsection (b) for a period of not less than 2 601(b)(2). (G) any regulation, license, or order issued years and not more than 5 years, if the Presi- (e) SUBSEQUENT MODIFICATIONS OF SANC- under any provision of law listed in subpara- dent determines that— TIONS.—The President may, after consulta- graph (A), (B), (C), (D), (E), or (F), (A) a foreign person has violated any regu- tion with the Committee on Banking, Hous- (H) section 371 or 1001 of title 18, United lation issued by a country to control exports ing, and Urban Affairs of the Senate and the States Code, if in connection with the export for national security purposes pursuant to a Committee on International Relations of the of controlled items under this Act or any multilateral export control regime; and House of Representatives, limit the scope of regulation, license, or order issued under the (B) such violation has substantially aided a sanctions applied to a parent, affiliate, sub- International Emergency Economic Powers country in— sidiary, or successor entity of the foreign Act, or the export of items controlled under (i) acquiring military significant capabili- person determined to have committed the the Arms Export Control Act, ties or weapons, if the country is an actual violation on account of which the sanctions (I) section 175 of title 18, United States or potential adversary of the United States; were imposed, if the President determines Code, (ii) acquiring nuclear weapons provided that— (J) section 229, of title 18, United States such country is other than the declared nu- (1) the parent, affiliate, subsidiary, or suc- Code, clear states of the People’s Republic China, cessor entity (as the case may be) has not, (K) a provision of the Atomic Energy Act the Republic of France, the Russian Federa- on the basis of evidence available to the (42 U.S.C. 201 et seq.), tion, the United Kingdom, and the United United States, itself violated the export con- (L) section 831 of title 18, United States States; trol regulation involved, either directly or Code, or (iii) acquiring biological or chemical weap- through a course of conduct; (M) section 2332a of title 18, United States ons; or (2) the government with jurisdiction over Code, (iv) acquiring missiles. the parent, affiliate, subsidiary, or successor may, at the discretion of the Secretary, be (2) NOTIFICATION OF CONGRESS.—The Presi- entity has improved its export control sys- denied export privileges under this Act for a dent shall notify Congress of each action tem as measured by the criteria set forth in period not to exceed 10 years from the date taken under this section. section 601(b)(2); and of the conviction. The Secretary may also (b) APPLICABILITY AND FORMS OF SANC- (3) the parent, affiliate, subsidiary, or suc- revoke any export license under this Act in TIONS.—The sanctions referred to in sub- cessor entity, has instituted improvements

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.143 pfrm01 PsN: S02PT1 S13706 CONGRESSIONAL RECORD — SENATE November 2, 1999 in internal controls sufficient to detect and (i) If the item involved in the export, (B) such person is a sole source supplier of prevent violations of the multilateral export transfer, or trade is within category II of the the product or service, the product or service control regime. MTCR Annex, then the President shall deny, is not available from any alternative reliable SEC. 605. MISSILE PROLIFERATION CONTROL for a period of 2 years, licenses for the trans- supplier, and the need for the product or VIOLATIONS. fer to such foreign person of missile equip- service cannot be met in a timely manner by (a) VIOLATIONS BY UNITED STATES PER- ment or technology the export of which is improved manufacturing processes or tech- SONS.— controlled under this Act. nological developments. (1) SANCTIONS.— (ii) If the item involved in the export, (7) EXCEPTIONS.—The President shall not (A) IN GENERAL.—If the President deter- transfer, or trade is within category I of the apply the sanction under this subsection pro- mines that a United States person MTCR Annex, then the President shall deny, hibiting the importation of the products of a knowingly— for a period of not less than 2 years, licenses foreign person— (i) exports, transfers, or otherwise engages for the transfer to such foreign person of (A) in the case of procurement of defense in the trade of any item on the MTCR items the export of which is controlled under articles or defense services— Annex, in violation of the provisions of sec- this Act. (i) under existing contracts or sub- tion 38 (22 U.S.C. 2778) or chapter 7 of the (iii) If, in addition to actions taken under contracts, including the exercise of options Arms Export Control Act, title II or III of clauses (i) and (ii), the President determines for production quantities to satisfy require- this Act, or any regulations or orders issued that the export, transfer, or trade has sub- ments essential to the national security of under any such provisions, stantially contributed to the design, devel- the United States; (ii) conspires to or attempts to engage in (ii) if the President determines that the opment, or production of missiles in a coun- such export, transfer, or trade, or person to which the sanctions would be ap- try that is not an MTCR adherent, then the (iii) facilitates such export, transfer, or plied is a sole source supplier of the defense President shall prohibit, for a period of not trade by any other person, articles and services, that the defense arti- less than 2 years, the importation into the then the President shall impose the applica- cles or services are essential to the national United States of products produced by that ble sanctions described in subparagraph (B). security of the United States, and that alter- foreign person. (B) SANCTIONS DESCRIBED.—The sanctions native sources are not readily or reasonably (2) INAPPLICABILITY WITH RESPECT TO MTCR which apply to a United States person under available; or subparagraph (A) are the following: ADHERENTS.—Paragraph (1) does not apply (iii) if the President determines that such (i) If the item on the MTCR Annex in- with respect to— articles or services are essential to the na- volved in the export, transfer, or trade is (A) any export, transfer, or trading activ- tional security of the United States under missile equipment or technology within cat- ity that is authorized by the laws of an defense coproduction agreements or NATO egory II of the MTCR Annex, then the Presi- MTCR adherent, if such authorization is not Programs of Cooperation; dent shall deny to such United States per- obtained by misrepresentation or fraud; or (B) to products or services provided under son, for a period of 2 years, licenses for the (B) any export, transfer, or trade of an contracts entered into before the date on transfer of missile equipment or technology item to an end user in a country that is an which the President publishes his intention controlled under this Act. MTCR adherent. to impose the sanctions; or (ii) If the item on the MTCR Annex in- (3) EFFECT OF ENFORCEMENT ACTIONS BY (C) to— volved in the export, transfer, or trade is MTCR ADHERENTS.—Sanctions set forth in (i) spare parts, missile equipment or technology within cat- paragraph (1) may not be imposed under this (ii) component parts, but not finished prod- egory I of the MTCR Annex, then the Presi- subsection on a person with respect to acts ucts, essential to United States products or dent shall deny to such United States per- described in such paragraph or, if such sanc- production, son, for a period of not less than 2 years, all tions are in effect against a person on ac- (iii) routine services and maintenance of licenses for items the export of which is con- count of such acts, such sanctions shall be products, to the extent that alternative trolled under this Act. terminated, if an MTCR adherent is taking sources are not readily or reasonably avail- (2) DISCRETIONARY SANCTIONS.—In the case judicial or other enforcement action against able, or of any determination referred to in para- that person with respect to such acts, or that (iv) information and technology essential graph (1), the Secretary may pursue any person has been found by the government of to United States products or production. other appropriate penalties under section an MTCR adherent to be innocent of wrong- (c) DEFINITIONS.—In this section: 603. doing with respect to such acts. (1) MISSILE.—The term ‘‘missile’’ means a (3) WAIVER.—The President may waive the (4) ADVISORY OPINIONS.—The Secretary, in category I system as defined in the MTCR imposition of sanctions under paragraph (1) consultation with the Secretary of State and Annex, and any other unmanned delivery on a person with respect to an item if the the Secretary of Defense, may, upon the re- system of similar capability, as well as the President certifies to Congress that— quest of any person, issue an advisory opin- specially designed production facilities for (A) the item is essential to the national se- ion to that person as to whether a proposed these systems. curity of the United States; and activity by that person would subject that (2) MISSILE TECHNOLOGY CONTROL REGIME; (B) such person is a sole source supplier of person to sanctions under this subsection. MTCR.—The term ‘‘Missile Technology Con- the item, the item is not available from any Any person who relies in good faith on such trol Regime’’ or ‘‘MTCR’’ means the policy alternative reliable supplier, and the need an advisory opinion which states that the statement, between the United States, the for the item cannot be met in a timely man- proposed activity would not subject a person United Kingdom, the Federal Republic of ner by improved manufacturing processes or to such sanctions, and any person who there- Germany, France, Italy, Canada, and Japan, technological developments. after engages in such activity, may not be announced on April 16, 1987, to restrict sen- (b) TRANSFERS OF MISSILE EQUIPMENT OR made subject to such sanctions on account of sitive missile-relevant transfers based on the TECHNOLOGY BY FOREIGN PERSONS.— such activity. MTCR Annex, and any amendments thereto. (1) SANCTIONS.— (5) WAIVER AND REPORT TO CONGRESS.— (3) MTCR ADHERENT.—The term ‘‘MTCR (A) IN GENERAL.—Subject to paragraphs (3) (A) WAIVER.—In any case other than one in adherent’’ means a country that participates through (7), if the President determines that which an advisory opinion has been issued in the MTCR or that, pursuant to an inter- a foreign person, after the date of enactment under paragraph (4) stating that a proposed national understanding to which the United of this section, knowingly— activity would not subject a person to sanc- States is a party, controls MTCR equipment (i) exports, transfers, or otherwise engages tions under this subsection, the President or technology in accordance with the cri- in the trade of any MTCR equipment or tech- may waive the application of paragraph (1) teria and standards set forth in the MTCR. nology that contributes to the design, devel- to a foreign person if the President deter- (4) MTCR ANNEX.—The term ‘‘MTCR opment, or production of missiles in a coun- mines that such waiver is essential to the Annex’’ means the Guidelines and Equip- try that is not an MTCR adherent and would national security of the United States. ment and Technology Annex of the MTCR, be, if it were United States-origin equipment (B) REPORT TO CONGRESS.—In the event and any amendments thereto. or technology, subject to the jurisdiction of that the President decides to apply the waiv- (5) MISSILE EQUIPMENT OR TECHNOLOGY; the United States under this Act, er described in subparagraph (A), the Presi- MTCR EQUIPMENT OR TECHNOLOGY.—The terms (ii) conspires to or attempts to engage in dent shall so notify Congress not less than 20 ‘‘missile equipment or technology’’ and such export, transfer, or trade, or working days before issuing the waiver. Such ‘‘MTCR equipment or technology’’ mean (iii) facilitates such export, transfer, or notification shall include a report fully ar- those items listed in category I or category trade by any other person, ticulating the rationale and circumstances II of the MTCR Annex. or if the President has made a determination which led the President to apply the waiver. (6) FOREIGN PERSON.—The term ‘‘foreign with respect to a foreign person under sec- (6) ADDITIONAL WAIVER.—The President person’’ means any person other than a tion 73(a) of the Arms Export Control Act, may waive the imposition of sanctions under United States person. then the President shall impose on that for- paragraph (1) on a person with respect to a (7) PERSON.— eign person the applicable sanctions under product or service if the President certifies (A) IN GENERAL.—The term ‘‘person’’ means subparagraph (B). to the Congress that— a natural person as well as a corporation, (B) SANCTIONS DESCRIBED.—The sanctions (A) the product or service is essential to business association, partnership, society, which apply to a foreign person under sub- the national security of the United States; trust, any other nongovernmental entity, or- paragraph (A) are the following: and ganization, or group, and any governmental

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.143 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13707 entity operating as a business enterprise, son, Congress urges the President to initiate cease to apply thereafter only if the Presi- and any successor of any such entity. consultations immediately with the govern- dent determines and certifies to the Congress (B) IDENTIFICATION IN CERTAIN CASES.—In ment with primary jurisdiction over that that reliable information indicates that the the case of countries where it may be impos- foreign person with respect to the imposition foreign person with respect to which the de- sible to identify a specific governmental en- of sanctions pursuant to this section. termination was made under subsection tity referred to in subparagraph (A), the (2) ACTIONS BY GOVERNMENT OF JURISDIC- (a)(1) has ceased to aid or abet any foreign term ‘‘person’’ means— TION.—In order to pursue such consultations government, project, or entity in its efforts (i) all activities of that government relat- with that government, the President may to acquire chemical or biological weapons ing to the development or production of any delay imposition of sanctions pursuant to capability as described in that subsection. missile equipment or technology; and this section for a period of up to 90 days. Fol- (e) WAIVER.— (ii) all activities of that government af- lowing the consultations, the President shall (1) CRITERION FOR WAIVER.—The President fecting the development or production of air- impose sanctions unless the President deter- may waive the application of any sanction craft, electronics, and space systems or mines and certifies to Congress that govern- imposed on any person pursuant to this sec- equipment. ment has taken specific and effective ac- tion, after the end of the 12-month period be- (8) OTHERWISE ENGAGED IN THE TRADE OF.— tions, including appropriate penalties, to ter- ginning on the date on which that sanction The term ‘‘otherwise engaged in the trade minate the involvement of the foreign per- was imposed on that person, if the President of’’ means, with respect to a particular ex- son in the activities described in subsection determines and certifies to Congress that port or transfer, to be a freight forwarder or (a)(1). The President may delay imposition of such waiver is important to the national se- designated exporting agent, or a consignee or sanctions for an additional period of up to 90 curity interests of the United States. end user of the item to be exported or trans- days if the President determines and cer- (2) NOTIFICATION OF AND REPORT TO CON- ferred. tifies to Congress that government is in the GRESS.—If the President decides to exercise SEC. 606. CHEMICAL AND BIOLOGICAL WEAPONS process of taking the actions described in the the waiver authority provided in paragraph PROLIFERATION SANCTIONS. preceding sentence. (1), the President shall so notify the Con- (a) IMPOSITION OF SANCTIONS.— (3) REPORT TO CONGRESS.—The President gress not less than 20 days before the waiver (1) DETERMINATION BY THE PRESIDENT.—Ex- shall report to Congress, not later than 90 takes effect. Such notification shall include cept as provided in subsection (b)(2), the days after making a determination under a report fully articulating the rationale and President shall impose both of the sanctions subsection (a)(1), on the status of consulta- circumstances which led the President to ex- described in subsection (c) if the President tions with the appropriate government under ercise the waiver authority. determines that a foreign person, on or after this subsection, and the basis for any deter- (f) DEFINITION OF FOREIGN PERSON.—For the date of enactment of this section, has mination under paragraph (2) of this sub- the purposes of this section, the term ‘‘for- knowingly and materially contributed— section that such government has taken spe- eign person’’ means— (A) through the export from the United cific corrective actions. (1) an individual who is not a citizen of the States of any item that is subject to the ju- (c) SANCTIONS.— United States or an alien admitted for per- risdiction of the United States under this (1) DESCRIPTION OF SANCTIONS.—The sanc- manent residence to the United States; or Act, or tions to be imposed pursuant to subsection (2) a corporation, partnership, or other en- (B) through the export from any other (a)(1) are, except as provided in paragraph (2) tity which is created or organized under the country of any item that would be, if it were of this subsection, the following: laws of a foreign country or which has its a United States item, subject to the jurisdic- (A) PROCUREMENT SANCTION.—The United principal place of business outside the tion of the United States under this Act, States Government shall not procure, or United States. to the efforts by any foreign country, enter into any contract for the procurement project, or entity described in paragraph (2) of, any goods or services from any person de- SEC. 607. ENFORCEMENT. to use, develop, produce, stockpile, or other- scribed in subsection (a)(3). (a) GENERAL AUTHORITY AND DESIGNA- wise acquire chemical or biological weapons. (B) IMPORT SANCTIONS.—The importation TION.— (2) COUNTRIES, PROJECTS, OR ENTITIES RE- into the United States of products produced (1) POLICY GUIDANCE ON ENFORCEMENT.—The CEIVING ASSISTANCE.—Paragraph (1) applies by any person described in subsection (a)(3) Secretary, in consultation with the Sec- in the case of— shall be prohibited. retary of the Treasury and the heads of other (A) any foreign country that the President (2) EXCEPTIONS.—The President shall not departments and agencies that the Secretary determines has, at any time after the date of be required to apply or maintain sanctions considers appropriate, shall be responsible enactment of this Act— under this section— for providing policy guidance on the enforce- (i) used chemical or biological weapons in (A) in the case of procurement of defense ment of this Act. violation of international law; articles or defense services— (2) GENERAL AUTHORITIES.— (ii) used lethal chemical or biological (i) under existing contracts or sub- (A) EXERCISE OF AUTHORITY.—To the extent weapons against its own nationals; or contracts, including the exercise of options necessary or appropriate to the enforcement (iii) made substantial preparations to en- for production quantities to satisfy United of this Act, officers or employees of the De- gage in the activities described in clause (i) States operational military requirements; partment designated by the Secretary, offi- or (ii); (ii) if the President determines that the cers and employees of the United States Cus- (B) any foreign country whose government person or other entity to which the sanctions toms Service designated by the Commis- is determined for purposes of section 310 to would otherwise be applied is a sole source sioner of Customs, and officers and employ- be a government that has repeatedly pro- supplier of the defense articles or services, ees of any other department or agency des- vided support for acts of international ter- that the defense articles or services are es- ignated by the head of the department or rorism; or sential, and that alternative sources are not agency, may exercise the enforcement au- (C) any other foreign country, project, or readily or reasonably available; or thority under paragraph (3). entity designated by the President for pur- (iii) if the President determines that such (B) CUSTOMS SERVICE.—In carrying out en- poses of this section. articles or services are essential to the na- forcement authority under paragraph (3), the (3) PERSONS AGAINST WHICH SANCTIONS ARE tional security under defense coproduction Commissioner of Customs and employees of TO BE IMPOSED.—Sanctions shall be imposed agreements; the United States Customs Services des- pursuant to paragraph (1) on— (B) to products or services provided under ignated by the Commissioner may make in- (A) the foreign person with respect to contracts entered into before the date on vestigations within or outside the United which the President makes the determina- which the President publishes his intention States and at ports of entry into or exit from tion described in that paragraph; to impose sanctions; the United States where officers of the (B) any successor entity to that foreign (C) to— United States Customs Service are author- person; (i) spare parts, ized by law to carry out law enforcement re- (C) any foreign person that is a parent or (ii) component parts, but not finished prod- sponsibilities. Subject to paragraph (3), the subsidiary of that foreign person if that par- ucts, essential to United States products or United States Customs Service is authorized, ent or subsidiary knowingly assisted in the production, or in the enforcement of this Act, to search, de- activities which were the basis of that deter- (iii) routine servicing and maintenance of tain (after search), and seize commodities or mination; and products, to the extent that alternative technology at the ports of entry into or exit (D) any foreign person that is an affiliate sources are not readily or reasonably avail- from the United States where officers of the of that foreign person if that affiliate know- able; United States Customs Service are author- ingly assisted in the activities which were (D) to information and technology essen- ized by law to conduct searches, detentions, the basis of that determination and if that tial to United States products or production; and seizures, and at the places outside the affiliate is controlled in fact by that foreign or United States where the United States Cus- person. (E) to medical or other humanitarian toms Service, pursuant to agreement or (b) CONSULTATIONS WITH AND ACTIONS BY items. other arrangement with other countries, is FOREIGN GOVERNMENT OF JURISDICTION.— (d) TERMINATION OF SANCTIONS.—The sanc- authorized to perform enforcement activi- (1) CONSULTATIONS.—If the President tions imposed pursuant to this section shall ties. makes the determinations described in sub- apply for a period of at least 12 months fol- (C) OTHER EMPLOYEES.—In carrying out en- section (a)(1) with respect to a foreign per- lowing the imposition of sanctions and shall forcement authority under paragraph (3), the

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Secretary and officers and employees of the (ii) OEE PERSONNEL.—Any officer and em- (A) funds made available for export en- Department designated by the Secretary ployee of the OEE designated by the Sec- forcement under this Act may be used to may make investigations within the United retary under paragraph (2) shall exercise the purchase property, buildings, and other fa- States, and may conduct, outside the United authority set forth in clause (i) pursuant to cilities, and to lease equipment, convey- States, pre-license and post-shipment guidelines approved by the Attorney Gen- ances, and space within the United States, verifications of controlled items and inves- eral. without regard to sections 1341 and 3324 of tigations in the enforcement of section 602. (C) OTHER ACTIONS BY CUSTOMS SERVICE title 31, United States Code, the third undes- The Secretary and officers and employees of PERSONNEL.—Any officer or employee of the ignated paragraph under the heading of the Department designated by the Secretary United States Customs Service designated by ‘‘miscellaneous’’ of the Act of March 3, 1877, are authorized to search, detain (after the Commissioner of Customs under para- (40 U.S.C. 34), sections 3732(a) and 3741 of the search), and seize items at places within the graph (2) may do the following in carrying Revised Statutes of the United States (41 United States other than ports referred to in out the enforcement authority under this U.S.C. 11(a) and 22), and subsections (a) and subparagraph (B). The search, detention Act: (c) of section 304, and section 305 of the Fed- (after search), or seizure of items at the (i) Stop, search, and examine a vehicle, eral Property and Administrative Services ports and places referred to in subparagraph vessel, aircraft, or person on which or whom Act of 1949 (41 U.S.C. 254 (a) and (c) and 255); (B) may be conducted by officers and em- the officer or employee has reasonable cause (B) funds made available for export en- ployees of the Department only with the to suspect there is any item that has been, is forcement under this Act may be used to es- concurrence of the Commissioner of Customs being, or is about to be exported from or tablish or to acquire proprietary corpora- tions or business entities as part of an under- or a person designated by the Commissioner. transited through the United States in viola- cover operation, and to operate such cor- (D) AGREEMENTS AND ARRANGEMENTS.—The tion of this Act. porations or business entities on a commer- Secretary and the Commissioner of Customs (ii) Detain and search any package or con- cial basis, without regard to sections 1341, may enter into agreements and arrange- tainer in which the officer or employee has 3324, and 9102 of title 31, United States Code; ments for the enforcement of this Act, in- reasonable cause to suspect there is any item (C) funds made available for export en- cluding foreign investigations and informa- that has been, is being, or is about to be ex- forcement under this Act and the proceeds tion exchange. ported from or transited through the United from undercover operations may be depos- (3) SPECIFIC AUTHORITIES.— States in violation of this Act. (iii) Detain (after search) or seize any ited in banks or other financial institutions (A) ACTIONS BY ANY DESIGNATED PER- without regard to the provisions of section SONNEL.—Any officer or employee designated item, for purposes of securing for trial or for- feiture to the United States, on or about 648 of title 18, United States Code, and sec- under paragraph (2), in carrying out the en- tion 3302 of title 31, United States Code; and forcement authority under this Act, may do such vehicle, vessel, aircraft, or person or in such package or container, if the officer or (D) the proceeds from undercover oper- the following: ations may be used to offset necessary and (i) Make investigations of, obtain informa- employee has probable cause to believe the item has been, is being, or is about to be ex- reasonable expenses incurred in such oper- tion from, make inspection of any books, ations without regard to the provisions of records, or reports (including any writings ported from or transited through the United States in violation of this Act. section 3302 of title 31, United States Code, required to be kept by the Secretary), prem- if the Director of OEE (or an officer or em- (4) OTHER AUTHORITIES NOT AFFECTED.—The ises, or property of, and take the sworn testi- ployee designated by the Director) certifies, authorities conferred by this section are in mony of, any person. in writing, that the action authorized by addition to any authorities conferred under (ii) Administer oaths or affirmations, and subparagraph (A), (B), (C), or (D) for which other laws. by subpoena require any person to appear the funds would be used is necessary for the and testify or to appear and produce books, (b) FORFEITURE.— conduct of the undercover operation. (1) IN GENERAL.—Any tangible items law- records, and other writings, or both. In the (2) DISPOSITION OF BUSINESS ENTITIES.—If a case of contumacy by, or refusal to obey a fully seized under subsection (a) by des- corporation or business entity established or subpoena issued to, any such person, a dis- ignated officers or employees shall be sub- acquired as part of an undercover operation trict court of the United States, on request ject to forfeiture to the United States. has a net value of more than $250,000 and is of the Attorney General and after notice to (2) APPLICABLE LAWS.—Those provisions of to be liquidated, sold, or otherwise disposed any such person and a hearing, shall have ju- law relating to— of, the Director of OEE shall report the cir- risdiction to issue an order requiring such (A) the seizure, summary and judicial for- cumstances to the Secretary and the Comp- person to appear and give testimony or to feiture, and condemnation of property for troller General of the United States as much appear and produce books, records, and other violations of the customs laws; in advance of such disposition as the Direc- writings, or both. Any failure to obey such (B) the disposition of such property or the tor of the OEE (or the Director’s designee) order of the court may be punished by such proceeds from the sale thereof; determines is practicable. The proceeds of court as a contempt thereof. The attendance (C) the remission or mitigation of such for- the liquidation, sale, or other disposition, of witnesses and the production of docu- feitures; and after obligations incurred by the corporation ments provided for in this clause may be re- (D) the compromise of claims, or business enterprise are met, shall be de- quired from any State, the District of Co- shall apply to seizures and forfeitures in- posited in the Treasury of the United States lumbia, or in any territory of the United curred, or alleged to have been incurred, as miscellaneous receipts. Any property or States at any designated place. Witnesses under the provisions of this subsection, inso- equipment purchased pursuant to paragraph subpoenaed under this subsection shall be far as applicable and not inconsistent with (1) may be retained for subsequent use in un- paid the same fees and mileage allowance as this Act. dercover operations under this section. When paid witnesses in the district courts of the (3) FORFEITURES UNDER CUSTOMS LAWS.— such property or equipment is no longer United States. Duties that are imposed upon the customs needed, it shall be considered surplus and (B) ACTIONS BY OFFICE OF EXPORT ENFORCE- officer or any other person with respect to disposed of as surplus government property. MENT AND CUSTOMS SERVICE PERSONNEL.— the seizure and forfeiture of property under (3) DEPOSIT OF PROCEEDS.—As soon as the (i) OFFICE OF EXPORT ENFORCEMENT AND the customs laws may be performed with re- proceeds from an OEE undercover investiga- CUSTOMS SERVICE PERSONNEL.—Any officer or spect to seizures and forfeitures of property tive operation with respect to which an ac- employee of the Office of Export Enforce- under this subsection by the Secretary or tion is authorized and carried out under this ment of the Department of Commerce (in any officer or employee of the Department subsection are no longer needed for the con- this Act referred to as ‘‘OEE’’) who is des- that may be authorized or designated for duct of such operation, the proceeds or the ignated by the Secretary under paragraph that purpose by the Secretary, or, upon the balance of the proceeds remaining at the (2), and any officer or employee of the United request of the Secretary, by any other agen- time shall be deposited into the Treasury of States Customs Service who is designated by cy that has authority to manage and dispose the United States as miscellaneous receipts. the Commissioner of Customs under para- of seized property. (4) AUDIT AND REPORT.— graph (2), may do the following in carrying (c) REFERRAL OF CASES.—All cases involv- (A) AUDIT.—The Director of OEE shall con- out the enforcement authority under this ing violations of this Act shall be referred to duct a detailed financial audit of each closed Act: the Secretary for purposes of determining OEE undercover investigative operation and (I) Execute any warrant or other process civil penalties and administrative sanctions shall submit the results of the audit in writ- issued by a court or officer of competent ju- under section 603 or to the Attorney General ing to the Secretary. Not later than 180 days risdiction with respect to the enforcement of for criminal action in accordance with this after an undercover operation is closed, the this Act. Act or to both the Secretary and the Attor- Secretary shall submit to Congress a report (II) Make arrests without warrant for any ney General. on the results of the audit. violation of this Act committed in his or her (d) UNDERCOVER INVESTIGATION OPER- (B) REPORT.—The Secretary shall submit presence or view, or if the officer or em- ATIONS.— annually to Congress a report, which may be ployee has probable cause to believe that the (1) USE OF FUNDS.—With respect to any un- included in the annual report under section person to be arrested has committed, is com- dercover investigative operation conducted 801, specifying the following information: mitting, or is about to commit such a viola- by the OEE that is necessary for the detec- (i) The number of undercover investigative tion. tion and prosecution of violations of this operations pending as of the end of the pe- (III) Carry firearms. Act— riod for which such report is submitted.

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(ii) The number of undercover investiga- original information concerning a violation (b) PROCEDURES RELATING TO CIVIL PEN- tive operations commenced in the 1-year pe- of this Act or any regulation, order, or li- ALTIES AND SANCTIONS.— riod preceding the period for which such re- cense issued under this Act, which is being, (1) ADMINISTRATIVE PROCEDURES.—Any ad- port is submitted. or has been, perpetrated or contemplated by ministrative sanction imposed under section (iii) The number of undercover investiga- any other person, and 603 may be imposed only after notice and op- tive operations closed in the 1-year period (B) such information leads to the recovery portunity for an agency hearing on the preceding the period for which such report is of any criminal fine, civil penalty, or for- record in accordance with sections 554 submitted and, with respect to each such feiture, through 557 of title 5, United States Code. closed undercover operation, the results ob- the Secretary may award and pay such per- The imposition of any such administrative tained and any civil claims made with re- son an amount that does not exceed 25 per- sanction shall be subject to judicial review spect to the operation. cent of the net amount of the criminal fine in accordance with sections 701 through 706 (5) DEFINITIONS.—For purposes of para- or civil penalty recovered or the amount for- of title 5, United States Code. graph (4)— feited. (2) AVAILABILITY OF CHARGING LETTER.— (A) the term ‘‘closed’’, with respect to an (2) DOLLAR LIMITATION.—The amount Any charging letter or other document initi- undercover investigative operation, refers to awarded and paid to any person under this ating administrative proceedings for the im- the earliest point in time at which all crimi- section may not exceed $250,000 for any case. position of sanctions for violations of the nal proceedings (other than appeals) pursu- (3) SOURCE OF PAYMENT.—The amount paid regulations issued under section 602 shall be ant to the investigative operation are con- under this section shall be paid out of any made available for public inspection and cluded, or covert activities pursuant to such penalties, forfeitures, or appropriated funds. copying. operation are concluded, whichever occurs (i) FREIGHT FORWARDERS BEST PRACTICES (c) COLLECTION.—If any person fails to pay later; and PROGRAM AUTHORIZATION.—There is author- a civil penalty imposed under section 603, the (B) the terms ‘‘undercover investigative ized to be appropriated for the Department Secretary may ask the Attorney General to operation’’ and ‘‘undercover operation’’ of Commerce $3,500,000 and such sums as may commence a civil action in an appropriate mean any undercover investigative oper- be necessary to hire 20 additional employees district court of the United States to recover ation conducted by the OEE— to assist United States freight forwarders the amount imposed (plus interest at cur- (i) in which the gross receipts (excluding and other interested parties in developing rently prevailing rates from the date of the interest earned) exceed $25,000, or expendi- and implementing, on a voluntary basis, a final order). No such action may be com- tures (other than expenditures for salaries of ‘‘best practices’’ program to ensure that ex- menced more than 5 years after the order im- employees) exceed $75,000, and ports of controlled items are undertaken in posing the civil penalty becomes final. In (ii) which is exempt from section 3302 or compliance with this Act. such an action, the validity, amount, and ap- (j) END-USE VERIFICATION AUTHORIZATION.— 9102 of title 31, United States Code, except propriateness of such penalty shall not be (1) IN GENERAL.—There is authorized to be that clauses (i) and (ii) shall not apply with subject to review. respect to the report to Congress required by appropriated for the Department of Com- (d) IMPOSITION OF TEMPORARY DENIAL OR- paragraph (4)(B). merce $4,500,000 and such sums as may be DERS.— (e) WIRETAPS.— necessary to hire 10 additional overseas in- (1) GROUNDS FOR IMPOSITION.—In any case (1) AUTHORITY.—Interceptions of commu- vestigators to be posted in the People’s Re- nications in accordance with section 2516 of public of China, the Russian Federation, the in which there is reasonable cause to believe title 18, United States Code, are authorized Hong Kong Special Administrative Region, that a person is engaged in or is about to en- to further the enforcement of this Act. the Republic of India, Singapore, Egypt, and gage in any act or practice which constitutes or would constitute a violation of this Act, (2) CONFORMING AMENDMENT.—Section Taiwan, or any other place the Secretary 2516(1) of title 18, United States Code, is deems appropriate, for the purpose of or any regulation, order, or license issued amended by adding at the end the following: verifying the end use of high-risk, dual-use under this Act, including any diversion of ‘‘(q)(i) any violation of, or conspiracy to technology. goods or technology from an authorized end use or end user, and in any case in which a violate, the Export Administration Act of (2) REPORT.—Not later than 2 years after 1999 or the Export Administration Act of the date of enactment of this Act and annu- criminal indictment has been returned 1979.’’. ally thereafter, the Department shall, in its against a person alleging a violation of this (f) POST-SHIPMENT VERIFICATION.— annual report to Congress on export con- Act or any of the statutes listed in section (1) IN GENERAL.—The Secretary shall target trols, include a report on the effectiveness of 603, the Secretary may, without a hearing, post-shipment verifications to exports in- the end-use verification activities authorized issue an order temporarily denying that per- volving the greatest risk to national secu- under subsection (a). The report shall in- son’s United States export privileges (here- rity including, but not limited to, exports of clude the following information: after in this subsection referred to as a high performance computers. (A) The activities of the overseas inves- ‘‘temporary denial order’’). A temporary de- (2) REPEAL.—Section 1213 of the National tigators of the Department. nial order shall be effective for such period Defense Authorization Act for Fiscal Year (B) The types of goods and technologies (not in excess of 180 days) as the Secretary 1998 is repealed. that were subject to end-use verification. specifies in the order, but may be renewed by (g) REFUSAL TO ALLOW POST-SHIPMENT (C) The ability of the Department’s inves- the Secretary, following notice and an oppor- VERIFICATION.— tigators to detect the illegal transfer of high tunity for a hearing, for additional periods of (1) IN GENERAL.—If an end-user refuses to risk, dual-use goods and technologies. not more than 180 days each. allow post-shipment verification of a con- (k) ENHANCED COOPERATION WITH UNITED (2) ADMINISTRATIVE APPEALS.—The person trolled item, the Secretary shall deny a li- STATES CUSTOMS SERVICE.—Consistent with or persons subject to the issuance or renewal cense for the export of any controlled item the purposes of this Act, the Secretary is au- of a temporary denial order may appeal the to such end-user until such post-shipment thorized to undertake, in cooperation with issuance or renewal of the temporary denial verification occurs. the United States Customs Service, such order, supported by briefs and other mate- (2) RELATED PERSONS.—The Secretary may measures as may be necessary or required to rial, to an administrative law judge who exercise the authority under paragraph (1) enhance the ability of the United States to shall, within 15 working days after the ap- with respect to any person related through detect unlawful exports and to enforce viola- peal is filed, issue a decision affirming, modi- affiliation, ownership, control, or position of tions of this Act. fying, or vacating the temporary denial responsibility, to any end-user refusing to (l) REFERENCE TO ENFORCEMENT.—For pur- order. The temporary denial order shall be allow post-shipment verification of a con- poses of this section, a reference to the en- affirmed if it is shown that— trolled item. forcement of this Act or to a violation of (A) there is reasonable cause to believe (3) REFUSAL BY COUNTRY.—If the country in this Act includes a reference to the enforce- that the person subject to the order is en- which the end-user is located refuses to ment or a violation of any regulation, li- gaged in or is about to engage in any act or allow post-shipment verification of a con- cense, or order issued under this Act. practice that constitutes or would constitute trolled item, the Secretary may deny a li- (m) AUTHORIZATION FOR EXPORT LICENSING a violation of this Act, or any regulation, cense for the export of that item or any sub- AND ENFORCEMENT COMPUTER SYSTEM.— order, or license issued under this Act; or stantially identical or directly competitive There is authorized to be appropriated for (B) a criminal indictment has been re- item or class of items to all end-users in that the Department $5,000,000 and such other turned against the person subject to the country until such post-shipment sums as may be necessary for planning, de- order alleging a violation of this Act or any verification is allowed. sign, and procurement of a computer system of the statutes listed in section 603. (h) AWARD OF COMPENSATION; PATRIOT PRO- to replace the Department’s primary export The decision of the administrative law judge VISION.— licensing and computer enforcement system. shall be final unless, within 10 working days (1) IN GENERAL.—If— SEC. 608. ADMINISTRATIVE PROCEDURE. after the date of the administrative law (A) any person, who is not an employee or (a) EXEMPTIONS FROM ADMINISTRATIVE PRO- judge’s decision, an appeal is filed with the officer of the United States, furnishes to a CEDURE.—Except as provided in this section, Secretary. On appeal, the Secretary shall ei- United States attorney, to the Secretary of the functions exercised under this Act are ther affirm, modify, reverse, or vacate the the Treasury or the Secretary, or to appro- excluded from the operation of sections 551, decision of the administrative law judge by priate officials in the Department of the 553 through 559, and 701 through 706 of title 5, written order within 10 working days after Treasury or the Department of Commerce, United States Code. receiving the appeal. The written order of

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.144 pfrm01 PsN: S02PT1 S13710 CONGRESSIONAL RECORD — SENATE November 2, 1999 the Secretary shall be final and is not sub- after the regulations are submitted for re- Code, unless the release of such information ject to judicial review, except as provided in view to such departments or agencies as the is determined by the Secretary to be in the paragraph (3). The materials submitted to President considers appropriate. The Sec- national interest. the administrative law judge and the Sec- retary shall consult with the appropriate ex- (b) INFORMATION TO CONGRESS AND GAO.— retary shall constitute the administrative port control advisory committee appointed (1) IN GENERAL.—Nothing in this title shall record for purposes of review by the court. under section 105(f) in formulating regula- be construed as authorizing the withholding (3) COURT APPEALS.—An order of the Sec- tions under this title. The second sentence of of information from Congress or from the retary affirming, in whole or in part, the this subsection does not require the concur- General Accounting Office. issuance or renewal of a temporary denial rence or approval of any official, depart- (2) AVAILABILITY TO THE CONGRESS— order may, within 15 days after the order is ment, or agency to which such regulations (A) IN GENERAL.—Any information ob- issued, be appealed by a person subject to the are submitted. tained at any time under this title or under order to the United States Court of Appeals (2) AMENDMENTS TO REGULATIONS.—If the any predecessor Act regarding the control of for the District of Columbia Circuit, which Secretary proposes to amend regulations exports, including any report or license ap- shall have the jurisdiction of the appeal. The issued under this Act, the Secretary shall re- plication required under this title, shall be court may review only those issues nec- port to the Committee on Banking, Housing, made available to any committee or sub- essary to determine whether the issuance of and Urban Affairs of the Senate and the committee of Congress of appropriate juris- the temporary denial order was based on rea- Committee on International Relations of the diction upon the request of the chairman or sonable cause to believe that the person sub- House of Representatives on the intent and ranking minority member of such committee ject to the order was engaged in or was about rationale of such amendments. Such report or subcommittee. to engage in any act or practice that con- shall evaluate the cost and burden to the (B) PROHIBITION ON FURTHER DISCLOSURE.— stitutes or would constitute a violation of United States exporters of the proposed No committee, subcommittee, or Member of this title, or any regulation, order, or license amendments in relation to any enhancement Congress shall disclose any information ob- issued under this Act, or whether a criminal of licensing objectives. The Secretary shall tained under this Act or any predecessor Act indictment has been returned against the consult with the appropriate export control regarding the control of exports which is person subject to the order alleging a viola- advisory committees appointed under sec- submitted on a confidential basis to the Con- tion of this Act or of any of the statutes list- tion 105(f) in amending regulations issued gress under subparagraph (A) unless the full ed in section 603. The court shall vacate the under this Act. committee to which the information is made available determines that the withholding of Secretary’s order if the court finds that the SEC. 702. CONFIDENTIALITY OF INFORMATION. Secretary’s order is arbitrary, capricious, an the information is contrary to the national (a) EXEMPTIONS FROM DISCLOSURE.— interest. abuse of discretion, or otherwise not in ac- (1) INFORMATION OBTAINED ON OR BEFORE cordance with law. (3) AVAILABILITY TO THE GAO.— JUNE 30, 1980.—Except as otherwise provided (A) IN GENERAL.—Notwithstanding sub- TITLE VII—EXPORT CONTROL AUTHORITY by the third sentence of section 602(c)(2), in- section (a), information described in para- AND REGULATIONS formation obtained under the Export Admin- graph (2) shall, consistent with the protec- SEC. 701. EXPORT CONTROL AUTHORITY AND istration Act of 1979, or any predecessor stat- tion of intelligence, counterintelligence, and REGULATIONS. ute, on or before June 30, 1980, which is law enforcement sources, methods, and ac- (a) EXPORT CONTROL AUTHORITY.— deemed confidential, including Shipper’s Ex- tivities, as determined by the agency that (1) IN GENERAL.—Unless otherwise reserved port Declarations, or with respect to which a originally obtained the information, and to the President or a department (other than request for confidential treatment is made consistent with the provisions of section 716 the Department) or agency of the United by the person furnishing such information, of title 31, United States Code, be made States, all power, authority, and discretion shall not be subject to disclosure under sec- available only by the agency, upon request, conferred by this Act shall be exercised by tion 552 of title 5, United States Code, and to the Comptroller General of the United the Secretary. such information shall not be published or States or to any officer or employee of the (2) DELEGATION OF FUNCTIONS OF THE SEC- disclosed, unless the Secretary determines General Accounting Office authorized by the RETARY.—The Secretary may delegate any that the withholding thereof is contrary to Comptroller General to have access to such function under this Act, unless otherwise the national interest. information. provided, to the Under Secretary of Com- (2) INFORMATION OBTAINED AFTER JUNE 30, (B) PROHIBITION ON FURTHER DISCLOSURES.— merce for Export Administration or to any 1980.—Except as otherwise provided by the No officer or employee of the General Ac- other officer of the Department. third sentence of section 13(b)(2) of the Ex- counting Office shall disclose, except to Con- (b) UNDER SECRETARY OF COMMERCE; AS- port Administration Act of 1979, information gress in accordance with this paragraph, any SISTANT SECRETARIES.— obtained under this Act, under the Export such information which is submitted on a (1) UNDER SECRETARY OF COMMERCE.—There Administration Act of 1979 after June 30, confidential basis and from which any indi- shall be within the Department an Under 1980, or under the Export Administration vidual can be identified. Secretary of Commerce for Export Adminis- regulations as maintained and amended (c) INFORMATION EXCHANGE.—Notwith- tration (in this section referred to as the under the authority of the International standing subsection (a), the Secretary and ‘‘Under Secretary’’) who shall be appointed Emergency Economic Powers Act (50 U.S.C. the Commissioner of Customs shall exchange by the President, by and with the advice and 1706), may be withheld from disclosure only licensing and enforcement information with consent of the Senate. The Under Secretary to the extent permitted by statute, except each other as necessary to facilitate enforce- shall carry out all functions of the Secretary that information submitted, obtained, or ment efforts and effective license decisions. under this Act and other provisions of law considered in connection with an application (d) PENALTIES FOR DISCLOSURE OF CON- relating to national security, as the Sec- for an export license or other export author- FIDENTIAL INFORMATION.— retary may delegate. ization (or recordkeeping or reporting re- (1) DISCLOSURE PROHIBITED.—No officer or (2) ADDITIONAL ASSISTANT SECRETARIES.—In quirement) under the Export Administration employee of the United States, or any de- addition to the number of Assistant Secre- Act of 1979, under this Act, or under the Ex- partment or agency thereof, may publish, di- taries otherwise authorized for the Depart- port Administration regulations as main- vulge, disclose, or make known in any man- ment of Commerce, there shall be within the tained and amended under the authority of ner or to any extent not authorized by law Department of Commerce the following As- the International Emergency Economic Pow- any information that— sistant Secretaries of Commerce: ers Act (50 U.S.C. 1706), including— (A) the officer or employee obtains in the (A) An Assistant Secretary for Export Ad- (A) the export license or other export au- course of his or her employment or official ministration who shall be appointed by the thorization itself, duties or by reason of any examination or in- President, by and with the advice and con- (B) classification requests described in sec- vestigation made by, or report or record sent of the Senate, and who shall assist the tion 501(h), made to or filed with, such department or Secretary and the Under Secretary in car- (C) information or evidence obtained in the agency, or officer or employee thereof; and rying out functions relating to export listing course of any investigation, (B) is exempt from disclosure under this and licensing. (D) information obtained or furnished section. (B) An Assistant Secretary for Export En- under title VII in connection with any inter- (2) CRIMINAL PENALTIES.—Any such officer forcement who shall be appointed by the national agreement, treaty, or other obliga- or employee who knowingly violates para- President, by and with the advice and con- tion, and graph (1) shall be fined not more than $50,000, sent of the Senate, and who shall assist the (E) information obtained in making the de- imprisoned not more than 1 year, or both, for Secretary and the Under Secretary in car- terminations set forth in section 211 of this each violation of paragraph (1). Any such of- rying out functions relating to export en- Act, ficer or employee may also be removed from forcement. and information obtained in any investiga- office or employment. (c) ISSUANCE OF REGULATIONS.— tion of an alleged violation of section 602 of (3) CIVIL PENALTIES; ADMINISTRATIVE SANC- (1) IN GENERAL.—The President and the this Act except for information required to TIONS.—The Secretary may impose a civil Secretary may issue such regulations as are be disclosed by section 602(c)(2) or 606(b)(2) of penalty of not more than $5,000 for each vio- necessary to carry out this Act. Any such this Act, shall be withheld from public dis- lation of paragraph (1). Any officer or em- regulations the purpose of which is to carry closure and shall not be subject to disclosure ployee who commits such violation may also out title II or title III may be issued only under section 552 of title 5, United States be removed from office or employment for

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.144 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13711 the violation of paragraph (1). Subsections tion with other appropriate departments and (1) Section 5(b)(4) of the Trading with the 603 (e), (g), (h), and (i) and 606 (a), (b), and (c) agencies, that a significant violation of this Enemy Act (50 U.S.C. App. 5(b)(4)) is amend- shall apply to violations described in this Act poses a direct and imminent threat to ed by striking ‘‘section 5 of the Export Ad- paragraph. United States national security interests, ministration Act of 1979, or under section 6 TITLE VIII—MISCELLANEOUS PROVISIONS the Secretary, in consultation with other ap- of that Act to the extent that such controls SEC. 801. ANNUAL AND PERIODIC REPORTS. propriate departments and agencies, shall promote the nonproliferation or (a) ANNUAL REPORT.—Not later than Feb- advise the Committee on Banking, Housing, antiterrorism policies of the United States’’ ruary 1 of each year, the Secretary shall sub- and Urban Affairs of the Senate and the and inserting ‘‘titles II and III of the Export mit to Congress a report on the administra- Committee on International Relations of the Administration Act of 1999’’. tion of this Act during the fiscal year ending House of Representatives of such violation (2) Section 502B(a)(2) of the Foreign Assist- September 30 of the preceding calendar year. consistent with the protection of law en- ance Act of 1961 (22 U.S.C. 2304(a)(2)) is All Federal agencies shall cooperate fully forcement sources, methods, and activities. amended in the second sentence— with the Secretary in providing information (d) FEDERAL REGISTER PUBLICATION RE- (A) by striking ‘‘Export Administration for each such report. QUIREMENTS.—Whenever information under Act of 1979’’ the first place it appears and in- (b) REPORT ELEMENTS.—Each such report this Act is required to be published in the serting ‘‘Export Administration Act of 1999’’; shall include in detail— Federal Register, such information shall, in and (1) a description of the implementation of addition, be made available on the appro- (B) by striking ‘‘Act of 1979)’’ and inserting the export control policies established by priate Internet website of the Department. ‘‘Act of 1999)’’. this Act, including any delegations of au- SEC. 802. TECHNICAL AND CONFORMING AMEND- (3) Section 140(a) of the Foreign Relations thority by the President and any other MENTS. Authorization Act, Fiscal Years 1988 and 1989 changes in the exercise of delegated author- (a) REPEAL.—The Export Administration (22 U.S.C. 2656f(a)) is amended— ity; Act of 1979 (50 U.S.C. App. 2401 et seq.) is re- (A) in paragraph (1)(B), by inserting ‘‘or (2) a description of the changes to and the pealed. section 310 of the Export Administration Act year-end status of country tiering and the (b) ENERGY POLICY AND CONSERVATION of 1999’’ after ‘‘Act of 1979’’; and Control List; ACT.—(1) Section 103 of the Energy Policy (B) in paragraph (2), by inserting ‘‘or 310 of (3) a description of the determinations and Conservation Act (42 U.S.C. 6212) is re- the Export Administration Act of 1999’’ after made with respect to foreign availability and pealed. ‘‘6(j) of the Export Administration Act of mass-market status, the set-asides of foreign (2) Section 251(d) of the Energy Policy and 1979’’. availability and mass-market status deter- Conservation Act (42 U.S.C. 6271(d)) is re- (4) Section 40(e)(1) of the State Department minations, and negotiations to eliminate pealed. Basic Authorities Act of 1956 (22 U.S.C. foreign availability; (c) ALASKA NATURAL GAS TRANSPORTATION 2712(e)(1)) is amended by striking ‘‘section (4) a description of the regulations issued ACT.—Section 12 of the Alaska Natural Gas 6(j)(1) of the Export Administration Act of under this Act; Transportation Act of 1976 (15 U.S.C. 719j) is 1979’’ and inserting ‘‘section 310 of the Export (5) a description of organizational and pro- repealed. Administration Act of 1999’’. cedural changes undertaken in furtherance (d) MINERAL LEASING ACT.—Section 28(u) of (5) Section 205(d)(4)(B) of the State Depart- of this Act; the Mineral Leasing Act (30 U.S.C. 185(u)) is ment Basic Authorities Act of 1956 (22 U.S.C. (6) a description of the enforcement activi- repealed. 4305(d)(4)(B)) is amended by striking ‘‘section (e) EXPORTS OF ALASKAN NORTH SLOPE ties, violations, and sanctions imposed under 6(j) of the Export Administration Act of OIL.—Section 28(s) of the Mineral Leasing section 604; 1979’’ and inserting ‘‘section 310 of the Export Act (30 U.S.C. 185(s)) is repealed. (7) a statistical summary of all applica- Administration Act of 1999’’. (f) DISPOSITION OF CERTAIN NAVAL PETRO- tions and notifications, including— (6) Section 110 of the International Secu- LEUM RESERVE PRODUCTS.—Section 7430(e) of (A) the number of applications and notifi- rity and Development Cooperation Act of title 10, United States Code, is repealed. cations pending review at the beginning of 1980 (22 U.S.C. 2778a) is amended by striking (g) OUTER CONTINENTAL SHELF LANDS the fiscal year; ‘‘Act of 1979’’ and inserting ‘‘Act of 1999’’. (B) the number of notifications returned ACT.—Section 28 of the Outer Continental Shelf Lands Act (43 U.S.C. 1354) is repealed. (7) Section 203(b)(3) of the International and subject to full license procedure; Emergency Economic Powers Act (50 U.S.C. (h) FOREST RESOURCES CONSERVATION AND (C) the number of notifications with no ac- 1702(b)(3)) is amended by striking ‘‘section 5 tion required; SHORTAGE ACT.—Section 491 of the Forest Resource Conservation and Shortage Relief of the Export Administration Act of 1979, or (D) the number of applications that were under section 6 of such Act to the extent approved, denied, or withdrawn, and the Act of 1990 (16 U.S.C. 620c) is repealed. that such controls promote the nonprolifera- number of applications where final action (i) ARMS EXPORT CONTROL ACT.— tion or antiterrorism policies of the United was taken; and (1) Section 38 of the Arms Export Control States’’ and inserting ‘‘the Export Adminis- (E) the number of applications and notifi- Act (22 U.S.C. 2778) is amended— tration Act of 1999’’. cations pending review at the end of the fis- (A) in subsection (e)— (8) Section 1605(a)(7)(A) of title 28, United cal year; (i) in the first sentence, by striking ‘‘sub- States Code, is amended by striking ‘‘section (8) summary of export license data by ex- sections (c)’’ and all that follows through ‘‘12 6(j) of the Export Administration Act of 1979 port identification code and dollar value by of such Act,’’ and inserting ‘‘subsections (b), (50 U.S.C. App. 2405(j))’’ and inserting ‘‘sec- country; (c), (d) and (e) of section 603 of the Export tion 310 of the Export Administration Act of (9) an identification of processing time Administration Act of 1999, by subsections by— (a) and (b) of section 607 of such Act, and by 1999’’. (A) overall average, and section 702 of such Act,’’; and (9) Section 2332d(a) of title 18, United (B) top 25 export identification codes; (ii) in the third sentence, by striking ‘‘11(c) States Code, is amended by striking ‘‘section (10) an assessment of the effectiveness of of the Export Administration Act of 1979’’ 6(j) of the Export Administration Act of 1979 multilateral regimes, and a description of and inserting ‘‘603(c) of the Export Adminis- (50 U.S.C. App. 2405)’’ and inserting ‘‘section negotiations regarding export controls; tration Act of 1999’’; and 310 of the Export Administration Act of (11) a description of the significant dif- (B) in subsection (g)(1)(A)(ii), by inserting 1999’’. ferences between the export control require- ‘‘or section 603 of the Export Administration (10) Section 620H(a)(1) of the Foreign As- ments of the United States and those of Act of 1999’’ after ‘‘1979’’. sistance Act of 1961 (22 U.S.C. 2378(a)(1)) is other multilateral control regime members, (2) Section 39A(c) of the Arms Export Con- amended by striking ‘‘section 6(j) of the Ex- the specific differences between United trol Act is amended— port Administration Act of 1979 (50 U.S.C. States requirements and those of other sig- (A) by striking ‘‘subsections (c),’’ and all App. 2405(j))’’ and inserting ‘‘section 310 of nificant supplier countries, and a description that follows through ‘‘12(a) of such Act’’ and the Export Administration Act of 1999’’. of the extent to which the executive branch inserting ‘‘subsections (c), (d), and (e) of sec- (11) Section 1621(a) of the International Fi- intends to address the differences; tion 603, section 608(c), and subsections (a) nancial Institutions Act (22 U.S.C. 262p– (12) an assessment of the costs of export and (b) of section 607, of the Export Adminis- 4q(a)) is amended by striking ‘‘section 6(j) of controls; tration Act of 1999’’; and the Export Administration Act of 1979 (50 (13) a description of the progress made to- (B) by striking ‘‘11(c)’’ and inserting U.S.C. App. 2405(j))’’ and inserting ‘‘section ward achieving the goals established for the ‘‘603(c)’’. 310 of the Export Administration Act of Department dealing with export controls (3) Section 40(k) of the Arms Export Con- 1999’’. under the Government Performance Results trol Act (22 U.S.C. 2780(k)) is amended— (12) Section 1956(c)(7)(D) of title 18, United Act; and (A) by striking ‘‘11(c), 11(e), 11(g), and 12(a) States Code, is amended by striking ‘‘section (14) any other reports required by this Act of the Export Administration Act of 1979’’ 11 (relating to violations) of the Export Ad- to be submitted to the Committee on Bank- and inserting ‘‘603(b), 603(c), 603(e), 607(a), ministration of 1979’’ and inserting ‘‘section ing, Housing, and Urban Affairs of the Sen- and 607(b) of the Export Administration Act 603 (relating to penalties) of the Export Ad- ate and the Committee on International Re- of 1999’’; and ministration Act of 1999’’. lations of the House of Representatives. (B) by striking ‘‘11(c)’’ and inserting SEC. 803. SAVINGS PROVISIONS. (c) CONGRESSIONAL NOTIFICATION.—When- ‘‘603(c)’’. (a) IN GENERAL.—All delegations, rules, ever the Secretary determines, in consulta- (j) OTHER PROVISIONS OF LAW.— regulations, orders, determinations, licenses,

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.144 pfrm01 PsN: S02PT1 S13712 CONGRESSIONAL RECORD — SENATE November 2, 1999

or other forms of administrative action SEC. 2. REQUIREMENT OF CONGRESSIONAL AP- (1) NEW SANCTIONS.—Except as provided in which have been made, issued, conducted, or PROVAL OF ANY UNILATERAL AGRI- subsections (c) and (d) and notwithstanding allowed to become effective under— CULTURAL OR MEDICAL SANCTION. any other provision of law, the President (1) the Export Control Act of 1949, the Ex- (a) DEFINITIONS.—In this section: may not impose a unilateral agricultural port Administration Act of 1969, the Export (1) AGRICULTURAL COMMODITY.—The term sanction or unilateral medical sanction Administration Act of 1979, or the Inter- ‘‘agricultural commodity’’ has the meaning against a foreign country or foreign entity, national Emergency Economic Powers Act given the term in section 102 of the Agricul- unless— when invoked to maintain and continue the tural Trade Act of 1978 (7 U.S.C. 5602). (A) not later than 60 days before the sanc- Export Administration regulations, or (2) AGRICULTURAL PROGRAM.—The term tion is proposed to be imposed, the President (2) those provisions of the Arms Export ‘‘agricultural program’’ means— submits a report to Congress that— Control Act which are amended by section (A) any program administered under the (i) describes the activity proposed to be 802, Agricultural Trade Development and Assist- prohibited, restricted, or conditioned; and and are in effect on the date of enactment of ance Act of 1954 (7 U.S.C. 1691 et. seq.); (ii) describes the actions by the foreign this Act, shall continue in effect according (B) any program administered under sec- country or foreign entity that justify the to their terms until modified, superseded, set tion 416 of the Agricultural Act of 1949 (7 sanction; and aside, or revoked under this Act or the Arms U.S.C. 1431); (B) Congress enacts a joint resolution stat- Export Control Act. (C) any program administered under the ing the approval of Congress for the report (b) ADMINISTRATIVE AND JUDICIAL PRO- Agricultural Trade Act of 1978 (7 U.S.C. 5601 submitted under subparagraph (A). CEEDINGS.— et. seq.); (2) EXISTING SANCTIONS.— (1) EXPORT ADMINISTRATION ACT.—This Act (D) the dairy export incentive program ad- (A) IN GENERAL.—Except as provided in shall not affect any administrative or judi- ministered under section 153 of the Food Se- subparagraph (B), with respect to any unilat- cial proceedings commenced or any applica- curity Act of 1985 (15 U.S.C. 713a–14); eral agricultural sanction or unilateral med- tion for a license made, under the Export Ad- (E) any commercial export sale of agricul- ical sanction that is in effect as of the date ministration Act of 1979 or pursuant to Exec- tural commodities; or of enactment of this Act, the President shall utive Order 12924, which is pending at the (F) any export financing (including credits terminate the sanction. time this Act takes effect. Any such pro- or credit guarantees) provided by the United (B) EXEMPTIONS.—Subparagraph (A) shall ceedings, and any action on such application, States Government for agricultural com- not apply to a unilateral agricultural sanc- shall continue under the Export Administra- modities. tion or unilateral medical sanction imposed tion Act of 1979 as if that Act had not been (3) JOINT RESOLUTION.—The term ‘‘joint with respect to— repealed. resolution’’ means— (i) any program administered under section (2) OTHER PROVISIONS OF LAW.—This Act (A) in the case of subsection (b)(1)(B), only 416 of the Agricultural Act of 1949 (7 U.S.C. shall not affect any administrative or judi- a joint resolution introduced within 10 ses- 1431); cial proceeding commenced or any applica- sion days of Congress after the date on which (ii) the Export Credit Guarantee Program tion for a license made, under those provi- the report of the President under subsection (GSM–102) or the Intermediate Export Credit sions of the Arms Export Control Act which (b)(1)(A) is received by Congress, the matter Guarantee Program (GSM–103) established are amended by section 802, if such pro- after the resolving clause of which is as fol- under section 202 of the Agricultural Trade ceeding or application is pending at the time lows: ‘‘That Congress approves the report of Act of 1978 (7 U.S.C. 5622); or this Act takes effect. Any such proceeding, the President pursuant to section 2(b)(1)(A) (iii) the dairy export incentive program ad- and any action on such application, shall of the Food and Medicine for the World Act, ministered under section 153 of the Food Se- continue under those provisions as if those transmitted on lllllll.’’, with the curity Act of 1985 (15 U.S.C. 713a–14). provisions had not been amended by section blank completed with the appropriate date; (c) EXCEPTIONS.—Subsection (b) shall not 802. and affect any authority or requirement to im- (c) TREATMENT OF CERTAIN DETERMINA- (B) in the case of subsection (e)(2), only a pose (or continue to impose) a sanction re- TIONS.—Any determination with respect to joint resolution introduced within 10 session ferred to in subsection (b)— the government of a foreign country under days of Congress after the date on which the (1) against a foreign country or foreign en- section 6(j) of the Export Administration Act report of the President under subsection tity with respect to which Congress has en- of 1979, or Executive Order 12924, that is in (e)(1) is received by Congress, the matter acted a declaration of war that is in effect on effect on the day before the date of enact- after the resolving clause of which is as fol- or after the date of enactment of this Act; or ment of this Act, shall, for purposes of this lows: ‘‘That Congress approves the report of title or any other provision of law, be (2) to the extent that the sanction would the President pursuant to section 2(e)(1) of deemed to be made under section 310 of this prohibit, restrict, or condition the provision the Food and Medicine for the World Act, Act until superseded by a determination or use of any agricultural commodity, medi- transmitted on lllllll.’’, with the under such section 310. cine, or medical device that is— blank completed with the appropriate date. (d) IMPLEMENTATION.—The Secretary shall (A) controlled on the United States Muni- make any revisions to the Export Adminis- (4) MEDICAL DEVICE.—The term ‘‘medical tions List established under section 38 of the tration regulations required by this Act no device’’ has the meaning given the term ‘‘de- Arms Export Control Act (22 U.S.C. 2778); later than 180 days after the date of enact- vice’’ in section 201 of the Federal Food, (B) controlled on any control list estab- ment of this Act. Drug, and Cosmetic Act (21 U.S.C. 321). lished under the Export Administration Act (5) MEDICINE.—The term ‘‘medicine’’ has of 1979 (50 U.S.C. App. 2401 et seq.); or the meaning given the term ‘‘drug’’ in sec- ASHCROFT (AND OTHERS) (C) used to facilitate the development or tion 201 of the Federal Food, Drug, and Cos- production of a chemical or biological weap- AMENDMENT NO. 2491 metic Act (21 U.S.C. 321). on or weapon of mass destruction. (Ordered to lie on the table.) (6) UNILATERAL AGRICULTURAL SANCTION.— (d) COUNTRIES SUPPORTING INTERNATIONAL Mr. ASHCROFT (for himself, Mr. The term ‘‘unilateral agricultural sanction’’ TERRORISM.—Subsection (b) shall not affect HAGEL, Mr. BAUCUS, Mr. DODD, Mr. means any prohibition, restriction, or condi- the prohibitions in effect on or after the date tion on carrying out an agricultural program DORGAN, Mr. BROWNBACK, Mr. KERREY, of enactment of this Act under section 620A with respect to a foreign country or foreign Mr. ROBERTS, Mr. ABRAHAM, Mr. AL- of the Foreign Assistance Act of 1961 (22 entity that is imposed by the United States U.S.C. 2371) on providing, to the government LARD, Mr. BENNETT, Mr. BINGAMAN, Mr. for reasons of foreign policy or national se- of any country supporting international ter- BOND, Mr. BURNS, Mr. CONRAD, Mr. curity, except in a case in which the United rorism, United States government assist- CRAIG, Mr. CRAPO, Mr. DASCHLE, Mr. States imposes the measure pursuant to a ance, including United States foreign assist- DURBIN, Mrs. FEINSTEIN, Mr. FITZ- multilateral regime and the other member ance, United States export assistance, or any GERALD, Mr. GORTON, Mr. GRAMS, Mr. countries of that regime have agreed to im- United States credits or credit guarantees. HARKIN, Mr. HUTCHINSON, Mr. INHOFE, pose substantially equivalent measures. (e) TERMINATION OF SANCTIONS.—Any uni- (7) UNILATERAL MEDICAL SANCTION.—The Mr. JEFFORDS, Mr. KENNEDY, Mr. lateral agricultural sanction or unilateral term ‘‘unilateral medical sanction’’ means LEAHY, Mrs. LINCOLN, Mr. THOMAS, Mr. medical sanction that is imposed pursuant to any prohibition, restriction, or condition on the procedures described in subsection (b)(1) WARNER, Mr. SESSIONS, and Ms. exports of, or the provision of assistance con- shall terminate not later than 2 years after LANDRIEU) submitted an amendment sisting of, medicine or a medical device with the date on which the sanction became effec- intended to be proposed by them to the respect to a foreign country or foreign entity tive unless— bill, H.R. 434, as follows: that is imposed by the United States for rea- (1) not later than 60 days before the date of At the appropriate place, insert the fol- sons of foreign policy or national security, termination of the sanction, the President lowing: except in a case in which the United States submits to Congress a report containing the SECTION 1. PURPOSE. imposes the measure pursuant to a multilat- recommendation of the President for the The purpose of this section is to establish eral regime and the other member countries continuation of the sanction for an addi- U.S. policy with regard to trade of agri- of that regime have agreed to impose sub- tional period of not to exceed 2 years and the culture commodities, medicine and medical stantially equivalent measures. request of the President for approval by Con- equipment. (b) RESTRICTION.— gress of the recommendation; and

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(2) Congress enacts a joint resolution stat- tion is agreed to or disagreed to shall not be AMENDMENT NO. 2492 ing the approval of Congress for the report in order. At the appropriate place, insert the fol- submitted under paragraph (1). (C) VOTE ON FINAL PASSAGE.—Immediately lowing: following the conclusion of the debate on a (f) CONGRESSIONAL PRIORITY PROCEDURES.— SEC. . RECIPROCAL TRADE AGREEMENTS RE- (1) REFERRAL OF REPORT.—A report de- joint resolution, and a single quorum call at QUIRED. scribed in subsection (b)(1)(A) or (e)(1) shall the conclusion of the debate if requested in The benefits provided by the amendments be referred to the appropriate committee or accordance with the rules of the House con- made by this Act shall not be available to committees of the House of Representatives cerned, the vote on final passage of the joint any country until the President has nego- and to the appropriate committee or com- resolution shall occur. tiated, obtained, and implemented an agree- mittees of the Senate. (D) RULINGS OF THE CHAIR ON PROCEDURE.— ment with the country providing tariff con- (2) REFERRAL OF JOINT RESOLUTION.— An appeal from a decision of the Chair relat- cessions for the importation of United (A) IN GENERAL.—A joint resolution shall ing to the application of the rules of the Sen- States-made goods that reduce any such im- be referred to the committees in each House ate or House of Representatives, as the case port tariffs to rates identical to the tariff of Congress with jurisdiction. may be, to the procedure relating to a joint rates applied by the United States to that (B) REPORTING DATE.—A joint resolution resolution shall be decided without debate. country. referred to in subparagraph (A) may not be (5) COORDINATION WITH ACTION BY OTHER HOUSE.—If, before the passage by 1 House of reported before the eighth session day of AMENDMENT NO. 2493 Congress after the introduction of the joint a joint resolution of that House, that House At the appropriate place in the bill, insert resolution. receives from the other House a joint resolu- the following: (3) DISCHARGE OF COMMITTEE.—If the com- tion, the following procedures shall apply: mittee to which is referred a joint resolution (A) NO COMMITTEE REFERRAL.—The joint SEC. . ENVIRONMENTAL AGREEMENT RE- has not reported the joint resolution (or an resolution of the other House shall not be re- QUIRED. identical joint resolution) at the end of 30 ferred to a committee. The benefits provided by the amendments session days of Congress after the date of in- (B) FLOOR PROCEDURE.—With respect to a made by this Act shall not be available to troduction of the joint resolution— joint resolution of the House receiving the any country until the President has nego- (A) the committee shall be discharged from joint resolution— tiated with that country a side agreement further consideration of the joint resolution; (i) the procedure in that House shall be the concerning the environment, similar to the and same as if no joint resolution had been re- North American Agreement on Environ- (B) the joint resolution shall be placed on ceived from the other House; but mental Cooperation, and submitted that the appropriate calendar of the House con- (ii) the vote on final passage shall be on agreement to the Congress. cerned. the joint resolution of the other House. (4) FLOOR CONSIDERATION.— (C) DISPOSITION OF JOINT RESOLUTIONS OF (A) MOTION TO PROCEED.— RECEIVING HOUSE.—On disposition of the joint HARKIN AMENDMENTS NOS. 2494– (i) IN GENERAL.—When the committee to resolution received from the other House, it 2495 which a joint resolution is referred has re- shall no longer be in order to consider the ported, or when a committee is discharged joint resolution originated in the receiving (Ordered to lie on the table.) under paragraph (3) from further consider- House. Mr. HARKIN submitted two amend- ation of, a joint resolution— (6) PROCEDURES AFTER ACTION BY BOTH THE ments intended to be proposed by him (I) it shall be at any time thereafter in HOUSE AND SENATE.—If a House receives a to the bill, H.R. 434, supra; as follows: joint resolution from the other House after order (even though a previous motion to the AMENDMENT NO. 2494 same effect has been disagreed to) for any the receiving House has disposed of a joint At the appropriate place, insert the fol- member of the House concerned to move to resolution originated in that House, the ac- lowing new section: proceed to the consideration of the joint res- tion of the receiving House with regard to olution; and the disposition of the joint resolution origi- SECTION . SHORT TITLE. (II) all points of order against the joint res- nated in that House shall be deemed to be This Act may be cited as the ‘‘Child Labor olution (and against consideration of the the action of the receiving House with regard Deterrence Act of 1999’’. joint resolution) are waived. to the joint resolution originated in the SEC. . FINDINGS; PURPOSE; POLICY. (ii) PRIVILEGE.—The motion to proceed to other House. (a) FINDINGS.—Congress makes the fol- the consideration of the joint resolution— (7) RULEMAKING POWER.—This paragraph is lowing findings: (I) shall be highly privileged in the House enacted by Congress— (1) Principle 9 of the Declaration of the of Representatives and privileged in the Sen- (A) as an exercise of the rulemaking power Rights of the Child proclaimed by the Gen- ate; and of the Senate and House of Representatives, eral Assembly of the United Nations on No- (II) not debatable. respectively, and as such this paragraph— vember 20, 1959, states that ‘‘. . . the child (iii) AMENDMENTS AND MOTIONS NOT IN (i) is deemed to be a part of the rules of shall not be admitted to employment before ORDER.—The motion to proceed to the con- each House, respectively, but applicable only an appropriate minimum age; he shall in no sideration of the joint resolution shall not be with respect to the procedure to be followed case be caused or permitted to engage in any subject to— in that House in the case of a joint resolu- occupation or employment which would prej- (I) amendment; tion; and udice his health or education, or interfere (II) a motion to postpone; or (ii) supersedes other rules only to the ex- with his physical, mental, or moral develop- (III) a motion to proceed to the consider- tent that this paragraph is inconsistent with ment . . .’’. ation of other business. those rules; and (2) Article 2 of the International Labor (iv) MOTION TO RECONSIDER NOT IN ORDER.— (B) with full recognition of the constitu- Convention No. 138 Concerning Minimum A motion to reconsider the vote by which tional right of either House to change the Age For Admission to Employment states the motion is agreed to or disagreed to shall rules (so far as the rules relate to the proce- that ‘‘The minimum age specified in pursu- not be in order. dure of that House) at any time, in the same ance of paragraph 1 of this article shall not (v) BUSINESS UNTIL DISPOSITION.—If a mo- manner and to the same extent as in the case be less than the age of compulsory schooling tion to proceed to the consideration of the of any other rule of that House. and, in any case, shall not be less than 15 joint resolution is agreed to, the joint reso- (g) EFFECTIVE DATE.— years.’’. lution shall remain the unfinished business (1) IN GENERAL.—Except as provided in (3) The new International Labor Conven- of the House concerned until disposed of. paragraph (2), this section takes effect on tion addressing the worst forms of child (B) LIMITATIONS ON DEBATE.— the date of enactment of this Act. labor calls on member States to take imme- (i) IN GENERAL.—Debate on the joint reso- (2) EXISTING SANCTIONS.—In the case of any diate and effective action to prohibit and lution, and on all debatable motions and ap- unilateral agricultural sanction or unilat- eliminate such labor. According to the con- peals in connection with the joint resolution, eral medical sanction that is in effect as of vention, the worst forms of child labor are— shall be limited to not more than 10 hours, the date of enactment of this Act, this sec- (A) slavery; which shall be divided equally between those tion takes effect 180 days after the date of (B) debt bondage; favoring and those opposing the joint resolu- enactment of this Act. (C) forced or compulsory labor; tion. (D) the sale or trafficking of children, in- (ii) FURTHER DEBATE LIMITATIONS.—A mo- cluding the forced or compulsory recruit- tion to limit debate shall be in order and HOLLINGS AMENDMENTS NOS. ment of children for use in armed conflict; shall not be debatable. 2492–2493 (E) child prostitution; (iii) AMENDMENTS AND MOTIONS NOT IN (Ordered to lie on the table.) (F) the use of children in the production ORDER.—An amendment to, a motion to post- and trafficking of narcotics; and pone, a motion to proceed to the consider- Mr. HOLLINGS submitted two (G) any other work that, by its nature or ation of other business, a motion to recom- amendments intended to be proposed due to the circumstances in which it is car- mit the joint resolution, or a motion to re- by him to the bill, H.R. 434, supra; as ried out, is likely to harm the health, safety, consider the vote by which the joint resolu- follows: or morals of children.

VerDate 29-OCT-99 05:08 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.134 pfrm01 PsN: S02PT1 S13714 CONGRESSIONAL RECORD — SENATE November 2, 1999 (4) According to the International Labor to alleviate the underlying poverty that is SEC. . IDENTIFICATION OF FOREIGN INDUS- Organization, an estimated 250,000,000 chil- often the cause of the commercial exploi- TRIES AND THEIR RESPECTIVE dren under the age of 15 worldwide are work- tation of such children. HOST COUNTRIES THAT UTILIZE CHILD LABOR IN EXPORT OF GOODS. ing, many of them in dangerous industries SEC. . UNITED STATES INITIATIVE TO CURTAIL like mining and fireworks. INTERNATIONAL TRADE IN PROD- (a) IDENTIFICATION OF INDUSTRIES AND HOST (5) Children under the age of 15 constitute UCTS OF CHILD LABOR. COUNTRIES.— approximately 22 percent of the workforce in In pursuit of the policy set forth in this (1) IN GENERAL.—The Secretary of Labor some Asian countries, 41 percent of the Act, the President is urged to seek an agree- (in this section referred to as the ‘‘Sec- workforce in parts of Africa, and 17 percent ment with the government of each country retary’’) shall undertake periodic reviews of the workforce in many countries in Latin that conducts trade with the United States using all available information, including in- America. for the purpose of securing an international formation made available by the Inter- (6) The number of children under the age of ban on trade in products of child labor. national Labor Organization and human 15 who are working, and the scale of their SEC. . DEFINITIONS. rights organizations (the first such review to be undertaken not later than 180 days after suffering, increase every year, despite the In this Act: existence of more than 20 International the date of enactment of this Act), to iden- (1) CHILD.—The term ‘‘child’’ means— tify any foreign industry that— Labor Organization conventions on child (A) an individual who has not attained the labor and national laws in many countries (A) does not comply with applicable na- age of 15, as measured by the Julian cal- which purportedly prohibit the employment tional laws prohibiting child labor in the endar; or of under age children. workplace; (B) an individual who has not attained the (7) In many countries, children under the (B) utilizes child labor in connection with age of 14, as measured by the Julian cal- age of 15 lack either the legal standing or products that are exported; and endar, in the case of a country identified means to protect themselves from exploi- (C) has on a continuing basis exported under section 5 whose national laws define a tation in the workplace. products of child labor to the United States. child as such an individual. (8) The prevalence of child labor in many (2) TREATMENT OF IDENTIFICATION.—For (2) EFFECTIVE IDENTIFICATION PERIOD.—The developing countries is rooted in widespread purposes of this Act, the identification of a term ‘‘effective identification period’’ poverty that is attributable to unemploy- foreign industry shall be treated as also means, with respect to a foreign industry or ment and underemployment, precarious in- being an identification of the host country. comes, low living standards, and insufficient host country, the period that— (A) begins on the date of that issue of the (b) PETITIONS REQUESTING IDENTIFICA- education and training opportunities among TION.— adult workers. Federal Register in which the identification of the foreign industry or host country is (1) FILING.—Any person may file a petition (9) The employment of children under the with the Secretary requesting that a par- age of 15 commonly deprives the children of published under section 5(e)(1)(A); and (B) terminates on the date of that issue of ticular foreign industry and its host country the opportunity for basic education and also be identified under subsection (a). The peti- denies gainful employment to millions of the Federal Register in which the revocation of the identification referred to in subpara- tion must set forth the allegations in sup- adults. port of the request. (10) The employment of children under the graph (A) is published under section (2) ACTION ON RECEIPT OF PETITION.—Not age of 15, often at pitifully low wages, under- 5(e)(1)(B). (3) ENTERED.—The term ‘‘entered’’ means later than 90 days after receiving a petition mines the stability of families and ignores under paragraph (1), the Secretary shall— the importance of increasing jobs, aggre- entered, or withdrawn from a warehouse for consumption, in the customs territory of the (A) decide whether or not the allegations gated demand, and purchasing power among in the petition warrant further action by the adults as a catalyst to the development of United States. (4) EXTRACTION.—The term ‘‘extraction’’ Secretary in regard to the foreign industry internal markets and the achievement of and its host country under subsection (a); broadbased, self-reliant economic develop- includes mining, quarrying, pumping, and other means of extraction. and ment in many developing countries. (B) notify the petitioner of the decision (11) United Nations Children’s Fund (com- (5) FOREIGN INDUSTRY.—The term ‘‘foreign industry’’ includes any entity that produces, under subparagraph (A) and the facts and monly known as UNICEF) estimates that by reasons supporting the decision. the year 2000, over 1,000,000 adults will be un- manufactures, assembles, processes, or ex- (c) CONSULTATION AND COMMENT.—Before able to read or write at a basic level because tracts an article in a host country. identifying a foreign industry and its host such adults were forced to work as children (6) HOST COUNTRY.—The term ‘‘host coun- country under subsection (a), the Secretary and were thus unable to devote the time to try’’ means any foreign country, and any shall— secure a basic education. possession or territory of a foreign country (b) PURPOSE.—The purpose of this Act is to that is administered separately for customs (1) consult with the United States Trade curtail the employment of children under purposes (including any designated zone Representative, the Secretary of State, the the age of 15 in the production of goods for within such country, possession, or terri- Secretary of Commerce, and the Secretary of export by— tory) in which a foreign industry is located. the Treasury regarding such action; (1) eliminating the role of the United (7) MANUFACTURED ARTICLE.—The term (2) hold at least 1 public hearing within a States in providing a market for foreign ‘‘manufactured article’’ means any good that reasonable time for the receipt of oral com- products made by such children; is fabricated, assembled, or processed. The ment from the public regarding such a pro- (2) supporting activities and programs to term also includes any mineral resource (in- posed identification; extend primary education, rehabilitation, cluding any mineral fuel) that is entered in (3) publish notice in the Federal Register— and alternative skills training to child work- a crude state. Any mineral resource that at (A) that such an identification is being ers, to improve birth registration, and to im- entry has been subjected to only washing, considered; prove the scope and quality of statistical in- crushing, grinding, powdering, levigation, (B) of the time and place of the hearing formation and research on the commercial sifting, screening, or concentration by flota- scheduled under paragraph (2); and exploitation of such children in the work- tion, magnetic separation, or other mechan- (C) inviting the submission within a rea- place; and ical or physical processes shall be treated as sonable time of written comment from the (3) encouraging other nations to join in a having been processed for the purposes of public; and ban on trade in products described in para- this Act. (4) take into account the information ob- graph (1) and to support those activities and (8) PRODUCTS OF CHILD LABOR.—An article tained under paragraphs (1), (2), and (3). programs described in paragraph (2). shall be treated as being a product of child (d) REVOCATION OF IDENTIFICATION.— (c) POLICY.—It is the policy of the United labor— (1) IN GENERAL.—Subject to paragraph (2), States— (A) if, with respect to the article, a child the Secretary may revoke the identification (1) to actively discourage the employment was engaged in the manufacture, fabrication, of any foreign industry and its host country of children under the age of 15 in the produc- assembly, processing, or extraction, in whole under subsection (a) if information available tion of goods for export or domestic con- or in part; and to the Secretary indicates that such action sumption; (B) if the labor was performed— is appropriate. (2) to strengthen and supplement inter- (i) in exchange for remuneration (regard- (2) REPORT OF SECRETARY.—No revocation national trading rules with a view to re- less to whom paid), subsistence, goods, or under paragraph (1) may take effect earlier nouncing the use of under age children in the services, or any combination of the fore- than the 60th day after the date on which the production of goods for export as a means of going; Secretary submits to the Congress a written competing in international trade; (ii) under circumstances tantamount to in- report— (3) to amend Federal law to prohibit the voluntary servitude; or (A) stating that in the opinion of the Sec- entry into commerce of products resulting (iii) under exposure to toxic substances or retary the foreign industry and host country from the labor of under age children; and working conditions otherwise posing serious concerned do not utilize child labor in con- (4) to offer assistance to foreign countries health hazards. nection with products that are exported; and to improve the enforcement of national laws (9) SECRETARY.—The term ‘‘Secretary’’, ex- (B) stating the facts on which such opinion prohibiting the employment of children cept for purposes of section 5, means the Sec- is based and any other reason why the Sec- under the age of 15 and to increase assistance retary of the Treasury. retary considers the revocation appropriate.

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(3) PROCEDURE.—No revocation under para- label described in subparagraph (A) and set- SEC. ll. LIMITATIONS ON BENEFITS. graph (1) may take effect unless the ting forth the terms and conditions of the (a) IN GENERAL.— Nothwithstanding any Secretary— acquisition or provision of the imported arti- other provision of law, no benefits under this (A) publishes notice in the Federal Reg- cle. Act shall be granted to any country (or to ister that such a revocation is under consid- (3) WRITTEN EVIDENCE.—The documentation any designated zone in that country) that eration and invites the submission within a required by the Secretary under paragraph does not meet any effectively enforce the reasonable time of oral and written comment (1) shall include written evidence that the standards regarding child labor established from the public on the revocation; and reasonable steps set forth in paragraph (2) by the ILO Convention (No. 182) for the (B) takes into account the information re- have been taken. Elimination of the Worst Forms of Child ceived under subparagraph (A) before pre- (4) CERTIFYING ORGANIZATIONS.— Labor. paring the report required under paragraph (A) IN GENERAL.—The Secretary shall com- (b) REPORT.—Not later than 12 months (2). pile and maintain a list of independent, after the date of enactment of this Act and (e) PUBLICATION.—The Secretary shall— internationally credible organizations, in annually thereafter, the President, after con- (1) promptly publish in the Federal each host country identified under section 5, sultation with the Trade Policy Review Com- Register— that have been established for the purpose mittee, shall submit a report to Congress on (A) the name of each foreign industry and of— the enforcement of, and compliance with, its host country identified under subsection (i) conducting inspections of foreign indus- the standards described in subsection (a). (a); tries, (B) the text of the decision made under (ii) certifying that articles to be exported BOXER AMENDMENT NO. 2496 subsection (b)(2)(A) and a statement of the from that country are not products of child facts and reasons supporting the decision; labor, and (Ordered to lie on the table.) and (iii) labeling the articles in accordance Mrs. BOXER submitted an amend- (C) the name of each foreign industry and with paragraph (2)(A). ment intended to be proposed by her to its host country with respect to which an (B) ORGANIZATION.—Each certifying organi- the bill, H.R. 434, supra; as follows: identification has been revoked under sub- zation shall consist of representatives of In section 113, add the following new sub- section (d); and nongovernmental child welfare organiza- section: (2) maintain and publish in the Federal tions, manufacturers, exporters, and neutral (d) CONVENTION ON THE ELIMINATION OF ALL Register a current list of all foreign indus- international organizations. FORMS OF DISCRIMINATION AGAINST WOMEN.— tries and their respective host countries SEC. . PENALTIES. The President shall direct the Secretary of identified under subsection (a). (a) UNLAWFUL ACTS.—It shall be unlawful, Commerce, the Secretary of the Treasury, SEC. . PROHIBITION ON ENTRY. during the effective identification period ap- the Secretary of State, and the United (a) PROHIBITION.— plicable to a foreign industry and its host States Trade Representative to urge partici- (1) IN GENERAL.—Except as provided in country— pants in the Forum to commit to taking all paragraph (2), during the effective identifica- (1) to attempt to enter any article that is necessary steps to ensure ratification of the tion period for a foreign industry and its a product of that industry if the entry is pro- Convention on the Elimination of All Forms host country no article that is a product of hibited under section 6(a)(1); or of Discrimination Against Women (CEDAW) that foreign industry may be entered into (2) to violate any regulation prescribed by the national legislatures of those nations the customs territory of the United States. under section 8. that have not yet ratified the Convention. (b) CIVIL PENALTY.—Any person who com- (2) EXCEPTION.—Paragraph (1) shall not mits an unlawful act set forth in subsection apply to the entry of an article— HELMS AMENDMENTS NOS. 2497– (A) for which a certification that meets the (a) shall be liable for a civil penalty not to exceed $25,000. 2500 requirements of subsection (b) is provided (c) CRIMINAL PENALTY.—In addition to and the article, or the packaging in which it (Ordered to lie on the table.) being liable for a civil penalty under sub- Mr. HELMS submitted four amend- is offered for sale, contains, in accordance section (b), any person who intentionally with regulations prescribed by the Sec- commits an unlawful act set forth in sub- ments intended to be proposed by him retary, a label stating that the article is not section (a) shall be, upon conviction, liable to the bill, H.R. 434, supra; as follows: a product of child labor; for a fine of not less than $10,000 and not AMENDMENT NO. 2497 (B) that is entered under any subheading in more than $35,000, or imprisonment for 1 Nothing in this Act shall be construed as subchapter IV or VI of chapter 98 of the Har- year, or both. monized Tariff Schedule of the United States amending, superseding, or restricting in any (d) CONSTRUCTION.—The unlawful acts set way the authority of the President under the (relating to personal exemptions); or forth in subsection (a) shall be treated as (C) that was exported from the foreign in- International Emergency Economic Powers violations of the customs laws for purposes Act. dustry and its host country and was en route of applying the enforcement provisions of to the United States before the first day of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.), AMENDMENT NO. 2498 the effective identification period for such including— industry and its host country. (1) the search, seizure, and forfeiture provi- Nothing in this Act shall be construed to (b) CERTIFICATION THAT ARTICLE IS NOT A sions; permit the commercial export, with or with- PRODUCT OF CHILD LABOR.— (2) section 592 (relating to penalties for out the benefit of subsidies, guarantees or (1) FORM AND CONTENT.—The Secretary entry by fraud, gross negligence, or neg- United States credit, of agricultural com- shall prescribe the form and content of docu- ligence); and modities, medicine or medical supplies or mentation, for submission in connection (3) section 619 (relating to compensation to equipment by United States persons or the with the entry of an article, that satisfies informers). United States government to the govern- ment of a country designated by the Sec- the Secretary that the exporter of the article SEC. . REGULATIONS. in the host country, and the importer of the The Secretary shall prescribe regulations retary of State under Section 620A of the article into the customs territory of the to carry out the provisions of this Act. Foreign Assistance Act of 1961 (as amended) (22 U.S.C. 2371 et seq.) or any entity con- United States, have undertaken reasonable SEC. . UNITED STATES SUPPORT FOR DEVELOP- steps to ensure, to the extent practicable, MENTAL ALTERNATIVES FOR UNDER trolled by such government. that the article is not a product of child AGE CHILD WORKERS. labor. In order to carry out section 2(c)(4), there AMENDMENT NO. 2499 (2) REASONABLE STEPS.—For purposes of is authorized to be appropriated to the Presi- Strike section 2(a)(1) and insert the fol- paragraph (1), ‘‘reasonable steps’’ include— dent the sum of— lowing: (A) in the case of the exporter of an article (1) $30,000,000 for each of fiscal years 2000 (1) AGRICULTURAL COMMODITY.— in the host country— through 2004 for the United States contribu- (A) IN GENERAL.—The term ‘‘agricultural (i) having entered into a contract, with an tion to the International Labor Organization commodity’’ has the meaning given that organization described in paragraph (4) in for the activities of the International Pro- term in section 402(2) of the Agricultural that country, providing for the inspection of gram on the Elimination of Child Labor; and Trade Development and Assistance Act of the foreign industry’s facilities for the pur- (2) $100,000 for fiscal year 2000 for the 1954 (7 U.S.C. 1732(2)). pose of certifying that the article is not a United States contribution to the United Na- (B) EXCLUSION.—The term does not include product of child labor, and affixing a label, tions Commission on Human Rights for any pesticide, fertilizer, or agricultural ma- protected under the copyright or trademark those activities relating to bonded child chinery or equipment. laws of the host country, that contains such labor that are carried out by the Sub- Strike section 2(c)(1) and insert the fol- certification; and committee and Working Group on Contem- lowing: (ii) having affixed to the article a label de- porary Forms of Slavery. (1) against a foreign country with respect scribed in clause (i); and to which— (B) in the case of the importer of an article AMENDMENT NO. 2495 (A) Congress has declared war or enacted a into the customs territory of the United At the appropriate, insert the following law containing specific authorization for the States, having required the certification and new section: use of force;

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.146 pfrm01 PsN: S02PT1 S13716 CONGRESSIONAL RECORD — SENATE November 2, 1999 (B) the United States is involved in ongo- (1) the President has negotiated with that (5) is an active participant in preparations ing hostilities; or country a side agreement concerning labor of the General Council of the World Trade (C) the President has proclaimed a state of standards, similar to the North American Organization for the 3d Ministerial Con- national emergency; or Agreement on Labor Cooperation (as defined ference of the World Trade Organization At the end of section 2(c)(2)(C), add the fol- in section 532(b)(2) of the Trade Agreements which will be held in the United States from lowing: Act of 1979 (19 U.S.C. 3471(b)(2)); and November 30 to December 3, 1999, and has (C) used or could be used to facilitate the (2) submitted that agreement to the Con- demonstrated a commitment to United development or production of a chemical or gress. States objectives with respect to an acceler- biological weapon or weapons of mass de- ated negotiating round of the World Trade struction. HARKIN AMENDMENT NO. 2502 Organization; Strike section (2)(d) and insert the fol- (6) is working consistently to eliminate ex- lowing: (Ordered to lie on the table.) port performance requirements or local con- (d) COUNTRIES SUPPORTING INTERNATIONAL Mr. HARKIN submitted an amend- tent requirements; TERRORISM.—This section shall not affect ment intended to be proposed by him (7) seeks the harmonization of domestic the prohibitions in effect on the date of en- to the bill, H.R. 434, supra; as follows: and international standards in a manner actment of this Act or prohibitions imposed At the appropriate place, insert the fol- that ensures transparency and non- pursuant to any future determination by the lowing new section: discrimination among the member econo- Secretary of State, under section 620A of the SEC. ll. GOODS MADE WITH FORCED OR INDEN- mies of APEC; Foreign Assistance Act of 1961 (22 U.S.C. TURED LABOR. (8) is increasing the economic opportuni- 2371), on providing, to the government, or a (a) IN GENERAL.—Section 307 of the Tariff ties available to small- and medium-sized corporation, partnership, or entity owned or Act of 1930 (19 U.S.C. 1307) is amended— businesses through deregulation; controlled by the government, of any coun- (1) in the second sentence, by striking ‘‘; (9) is working consistently to eliminate try supporting international terrorism, but in no case’’ and all that follows to the barriers to trade in services; United States Government assistance, in- end period; and (10) provides national treatment for foreign cluding United States foreign assistance, (2) by adding at the end the following new direct investment; United States export assistance, or any sentence: ‘‘For purposes of this section, the (11) is working consistently to accommo- United States credits or credit guarantees. term ‘forced labor or/and indentured labor’ date market access objectives of the United includes forced or indentured child labor.’’. States; AMENDMENT NO. 2500 (b) EFFECTIVE DATES.— (12) is working constructively to resolve Strike section 2(a)(1) and insert the fol- (1) IN GENERAL.—The amendment made by trade disputes with the United States and lowing: subsection (a)(1) applies to goods entered, or displays a clear intent to continue to do so; (1) AGRICULTURAL COMMODITY.— withdrawn from warehouse for consumption, (13) is a country whose bilateral trade rela- (A) IN GENERAL.—The term ‘‘agricultural on or after the date that is 15 days after the tionship with the United States will benefit commodity’’ has the meaning given that date of enactment of this Act. from improved dispute settlement mecha- term in section 402(2) of the Agricultural (2) CHILD LABOR.—The amendment made by nisms; and Trade Development and Assistance Act of subsection (a)(2) takes effect on the date of (14) is a country whose market for products 1954 (7 U.S.C. 1732(2)). enactment of this Act. and services of the United States will be sig- (B) EXCLUSION.—The term does not include nificantly enhanced by eliminating substan- any pesticide, fertilizer, or agricultural ma- GRASSLEY AMENDMENT NO. 2503 tially all tariff and nontariff barriers and chinery or equipment. structural impediments to trade. Strike section 2(c)(1) and insert the fol- (Ordered to lie on the table.) (c) ELIGIBLE PACIFIC RIM COUNTRIES.—As lowing: Mr. GRASSLEY submitted an used in this section: (1) against a foreign country with respect amendment intended to be proposed by (1) APEC.—The term ‘‘APEC’’ means the to which— him to the bill, H.R. 434, supra; as fol- Asian Pacific Economic Cooperation Forum. (A) Congress has declared war or enacted a lows: (2) ELIGIBLE PACIFIC RIM COUNTRY.—The law containing specific authorization for the At the end, insert the following new title: term ‘‘eligible Pacific Rim country’’ means use of force; any country that is a WTO member (as de- (B) the United States is involved in ongo- TITLE VI—OTHER TRADE PROVISIONS fined in section 2 of the Uruguay Round ing hostilities; or SEC. 601. PRESIDENTIAL DETERMINATION RE- Agreements Act (19 U.S.C. 3501) and is a (C) the President has proclaimed a state of GARDING THE FEASIBILITY AND DE- member economy of APEC. national emergency; or SIRABILITY OF NEGOTIATING FREE TRADE AGREEMENTS WITH ELIGI- f At the end of section 2(c)(2)(C), add the fol- BLE COUNTRIES. lowing: (a) DETERMINATION AND REPORT.—Not later LEGISLATION TO PROVIDE SUP- (C) used or could be used to facilitate the than 6 months after the date of enactment of PORT FOR CERTAIN INSTITUTES development or production of a chemical or this Act and after receiving advice from the AND SCHOOLS biological weapon or weapons of mass de- Advisory Committee for Trade Policy Nego- struction. tiations established under section 135(b) of Strike section (2)(d) and insert the fol- the Trade Act of 1974, the President shall— lowing: JEFFORDS AMENDMENT NO. 2504 (1) make a determination on the feasibility (d) COUNTRIES SUPPORTING INTERNATIONAL and desirability of commencing formal nego- Mr. HAGEL (for Mr. JEFFORDS) pro- TERRORISM.—This section shall not affect tiations regarding a free trade agreement posed an amendment to the bill (S. 440) the prohibitions in effect on the date of en- with an eligible Pacific Rim country or to provide support for certain insti- actment of this Act or prohibitiions imposed countries to which the report relates; and pursuant to any future determination by the tutes and schools; as follows: (2) submit a report to the Committee on Secretary of State, under section 620A of the At the end, add the following: Finance of the Senate and the Committee on Foreign Assistance Act of 1961 (22 U.S.C. Title V—Robert T. Stafford Public Policy Ways and Means of the House of Representa- 2371), on providing, to the government, or a Institute tives on that determination. corporation, partnership, or entity owned or (b) FACTORS IN MAKING DETERMINATION.—In SEC. 501. DEFINITIONS. controlled by the government, of any coun- making a determination on the feasibility In this section: try supporting international terrorism, and desirability of establishing a free trade (1) ENDOWMENT FUND.—The term ‘‘endow- United States Government assistance, in- area between the United States and an eligi- ment fund’’ means a fund established by the cluding United States foreign assistance, ble country, the President shall consider Robert T. Stafford Public Policy Institute United States export assistance, or any whether that country— for the purpose of generating income for the United States credits or credit guarantees. (1) is a member of the World Trade Organi- support of authorized activities. zation; (2) ENDOWMENT FUND CORPUS.—The term HOLLINGS AMENDMENT NO. 2501 (2) has expressed an interest in negotiating ‘‘endowment fund corpus’’ means an amount (Ordered to lie on the table.) a bilateral free trade agreement with the equal to the grant or grants awarded under Mr. HOLLINGS submitted an amend- United States; this title. ment intended to be proposed by him (3) has pursued substantive trade liberal- (3) ENDOWMENT FUND INCOME.—The term ization and undertaken structural economic ‘‘endowment fund income’’ means an amount to the bill, H.R. 434, supra; as follows: reforms in order to achieve an economy gov- equal to the total value of the endowment At the appropriate place, insert the fol- erned by market forces, fiscal restraint, and fund minus the endowment fund corpus. lowing: international trade disciplines and, as a re- (4) INSTITUTE.—The term ‘‘institute’’ SEC. . LABOR AGREEMENT REQUIRED. sult, has achieved a largely open economy; means the Robert T. Stafford Public Policy The benefits provided by the amendments (4) has demonstrated a broad affinity for Institute. made by this Act shall not become available United States trade policy objectives and (5) SECRETARY.—The term ‘‘Secretary’’ to any country until— initiatives; means the Secretary of Education.

VerDate 29-OCT-99 05:08 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.147 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13717 SEC. 502. PROGRAM AUTHORIZED. AUTHORITY FOR COMMITTEES TO ADDITIONAL STATEMENTS (a) GRANTS.—From the funds appropriated MEET under section 505, the Secretary is author- ized to award a grant in an amount of COMMITTEE ON BANKING, HOUSING, AND URBAN THE PHONY BATTLE AGAINST $5,000,000 to the Robert T. Stafford Public AFFAIRS ‘ISOLATIONISM’ Policy Institute. Mr. GRASSLEY. Mr. President, I ask Mr. KYL. Mr. President, Friday’s (b) APPLICATION.—No grant payment may unanimous consent that the Com- ∑ Washington Post contained an excel- be made under this section except upon an mittee on Banking, Housing, and lent op-ed piece by columnist Charles application at such time, in such manner, Urban Affairs be authorized to meet and containing or accompanied by such in- Krathammer arguing that, contrary to during the session of the Senate on formation as the Secretary may require. claims now being made by senior Clin- Tuesday, November 2, 1999, to conduct SEC. 503. AUTHORIZED ACTIVITIES. ton Administration officials, the recent a hearing on ‘‘The World Trade Organi- Funds appropriated under this title may be defeat of the Comprehensive Test Bank zation, its Seattle Ministerial, and the used— Treaty is not evidence of an emerging Millennium Round.’’ (1) to further the knowledge and under- isolationist trend in the Republican The PRESIDING OFFICER. Without standing of students of all ages about edu- party. I ask that the column be printed cation, the environment, and public service; objection, it is so ordered. in the RECORD. (2) to increase the awareness of the impor- COMMITTEE ON FOREIGN RELATIONS tance of public service, to foster among the The material follows: youth of the United States greater recogni- Mr. GRASSLEY. Mr. President, I ask THE PHONY BATTLE AGAINST ‘ISOLATIONISM’ tion of the role of public service in the devel- unanimous consent that the Com- After seven years, the big foreign policy opment of the Unites States, and to promote mittee on Foreign Relations be author- thinkers in the Clinton administration are public service as a career choice; ized to meet during the session of the convinced they have come up with a big idea. (3) to provide or support scholarships; Senate on Tuesday, November 2, 1999 at Having spent the better part of a decade me- (4) to conduct educational, archival, or 10:00 AM and at 2:00 PM to hold two andering through the world without a hint of preservation activities; Nomination Hearings. strategy—wading compassless in and out of (5) to construct or renovate library and re- swamps from Somalia to Haiti to Yugo- search facilities for the collection and com- The PRESIDING OFFICER. Without slavia—they have finally found their theme. pilation of research materials for use in car- objection, it is so ordered. National Security Adviser Sandy Berger rying out programs of the Institute; COMMITTEE ON THE JUDICIARY unveiled it in a speech to the Council on For- (6) to establish or increase an endowment Mr. GRASSLEY. Mr. President, I ask eign Relations last week. In true Clintonian fashion, Berger turned personal pique over fund for use in carrying out the programs of unanimous consent that the Com- the Institute. the rejection of the test ban treaty into a mittee on the Judiciary be authorized SEC. 504. ENDOWMENT FUND. grand idea: The Democrats are inter- to meet on Tuesday, November 2, 1999 nationalists, their opponents are isolation- (a) MANAGEMENT.—An endowment fund cre- at 10:00 a.m., in The President’s Room, ists. ated with funds authorized under this title First of all, it ill behooves Democrats to shall be managed in accordance with the The Capitol, to conduct a mark-up. call anybody isolationists. This is the party standard endowment policies established by The PRESIDING OFFICER. Without that in 1972 committed itself to ‘‘Come the Institute. objection, it is so ordered. home, America.’’ That cut off funds to South (b) USE OF ENDOWMENT FUND INCOME.—En- COMMITTEE ON THE JUDICIARY Vietnam. That fought bitterly to cut off aid dowment fund income earned (on or after the to the Nicaraguan contras and the pro-Amer- date of enactment of this title) may be used Mr. GRASSLEY. Mr. President, I ask ica government of El Salvador. That mind- to support the activities authorized under unanimous consent that the Com- lessly called for a nuclear freeze. That voted section 503. mittee on the Judiciary be authorized to meet on Tuesday, November 2, 1999 against the Gulf War. SEC. 505. AUTHORIZATION OF APPROPRIATIONS. They prevailed in Vietnam but thankfully There are authorized to be appropriated to at 10:30 a.m., in Dirksen Room 226, to were defeated on everything else. The carry out this title $5,000,000. Funds appro- conduct a hearing. contras were kept alive, forcing the Sandi- priated under this section shall remain The PRESIDING OFFICER. Without nistas to agree to free elections. Nicaragua is available until expended. objection, it is so ordered. now a democracy. El Salvador was supported against com- SUBCOMMITTEE ON NEAR EASTERN AND SOUTH f munist guerrillas. It, too, is now a democ- ASIAN AFFAIRS racy. Mr. GRASSLEY. Mr. President, I ask President Reagan faced down the freeze NOTICE OF HEARING unanimous consent that the Sub- and succeeded in getting Soviet withdrawal SUBCOMMITTEE ON INVESTIGATIONS committee on Near Eastern and South of their SS–20 nukes from Europe, the aboli- Asian Affairs be authorized to meet tion of multiwarhead missiles, and the first Ms. COLLINS. Mr. President, I would nuclear arms reduction in history. like to announce for the information of during the session of the Senate on Tuesday, November 2, 1999 at 3:00 p.m. And the Gulf War was fought, preventing the Senate and the public that the Per- Saddam from becoming the nuclear-armed manent Subcommittee on Investiga- to hold a hearing. hegemon of the Persian Gulf. tions of the Committee on Govern- The PRESIDING OFFICER. Without ‘‘The internationalist consensus that pre- mental Affairs, will hold hearings enti- objection, it is so ordered. vailed in this country for more than 50 tled ‘‘Private Banking and Money SUBCOMMITTEE ON FOREST AND PUBLIC LAND years,’’ claimed Berger, ‘‘increasingly is Laundering: A Case Study of Opportu- MANAGEMENT being challenged by a new isolationism, heard and felt particularly in the Congress.’’ nities and Vulnerabilities.’’ The up- Mr. GRASSLEY. Mr. President, I ask Internationalist consensus? For the last 20 coming hearings will examine the unanimous consent that the Sub- years of the Cold War, after the Democrats vulnerabilities of U.S. private banks to committee on Forest and Public Land lost their nerve over Vietnam, there was no money laundering and the role of U.S. Management of the Committee on En- internationalist consensus. Internationalism banks in the growing and competitive ergy and Natural Resources be author- was the property of the Republican Party private banking industry, their serv- ized to meet during the session of the and of a few brave Democratic dissidents led ices and clientele, and their anti- Senate on Tuesday, November 2, for by Sen. Henry Jackson—who were utterly purposes of conducting a Sub- shut out of power when the Democrats won money laundering efforts. Witnesses the White House. will include private bank personnel, committee on Forests and Public Berger’s revisionism is not restricted to bank regulators, and banking and law Lands Management hearing which is the Reagan and Bush years. He can’t seem to enforcement experts. scheduled to begin at 9:30 a.m. The pur- remember the Clinton years either. He says The hearings will take place on Tues- pose of this oversight hearing is to re- of the Republicans, that ‘‘since the Cold War day, November 9, 1999, at 9:30 a.m., and ceive testimony on the recent an- ended, the proponents of this [isolationist] Wednesday, November 10, 1999, at 1:00 nouncement by President Clinton to vision have been nostalgic for the good old p.m., in Room 628 of the Dirksen Sen- review approximateley 40 million acres days when friends were friends and enemies were enemies.’’ ate Office Building. For further infor- of national forest lands for increased Cold War nostalgia? It was Bill Clinton mation, please contact Linda Gustitus protection. who early in his presidency said laughingly, of the Subcommittee’s Minority staff The PRESIDING OFFICER. Without ‘‘Gosh, I miss the Cold War.’’ Then seriously, at 224–9505. objection, it is so ordered. ‘‘We had an intellectually coherent thing.

VerDate 29-OCT-99 05:36 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.148 pfrm01 PsN: S02PT1 S13718 CONGRESSIONAL RECORD — SENATE November 2, 1999 The American people knew what the rules moved to Washington, D.C., and in Jan- to the millions of unrequested, low-pri- were.’’ uary 1956, she began work as a sec- ority, wasteful spending in this con- What exactly is the vision that Berger has retary in my brother’s Senate office. ference report. This legislation in- to offer? What does the Clinton foreign pol- Following the 1960 election, Jack asked cludes $535 million in pork-barrel icy stand for? Engagement. Hence the speech’s title, Helen to join his White House Staff, spending. This is an unacceptable ‘‘American Power—Hegemony, Isolation or and she served as a Secretarial Assist- amount of money to spend on low-pri- Engagement.’’ Or as he spelled it out: ‘‘To ant in the Office of the President until ority, unrequested, wasteful projects. keep America engaged in a way that will January 1963. Congress must curb its appetite for benefit our people and all people.’’ Helen then decided she wanted to such unbridled spending. Has there ever been a more mushy, mean- gain experience working overseas, and Pork-barrel spending today not only ingless choice of strategy? Engagement can for the next year and a half, she served robs well-deserving programs of much mean anything. It can mean engagement as in our U.S. Embassy in Rome She then needed funds, it also jeopardizes social a supplicant, as a competitor, as an ally, as returned to America, and at the re- security reform, potential tax cuts, and an adversary, as a neutral arbiter. Wake up our fiscal well-being into the next cen- on a Wednesday and pick your meaning. quest of Jackie Kennedy, she came The very emptiness of the term captures back to work with our family. For the tury. perfectly the essence of Clinton foreign pol- next few years, she served as an assist- The multitude of earmarks buried in icy. It is glorified ad hocism. ant to Jackie in New York City. She this proposal will further burden the It lurches from one civil war to another watched Caroline and John F. Ken- American taxpayers. While the with no coherent logic and with little regard nedy, Jr. grow up, and went on to amounts associated with each indi- for American national interest—finally pro- marry and raise a family of her own. vidual earmark may not seem extrava- claiming, while doing a victory jig over In 1992, Helen rejoined the Federal gant, taken together, they represent a Kosovo, a Clinton Doctrine pledging America serious diversion of taxpayers’ hard- to stop ethnic cleansing anywhere. Government and started a career with NOAA. She has been a good friend to earned dollars to low priority programs It lurches from one multilateral treaty to at the expense of numerous programs another—from the Chemical Warfare Con- Massachusetts and has called for a bal- vention that even its proponents admit is anced approach to fisheries manage- that have undergone the appropriate unverifiable to a test ban treaty that is not ment. She has been a skillful advocate merit-based selection process. Congress just unverifiable but disarming—in the belief for assistance to New England fisher- and the American public must be made that American security can be founded on men and coastal communities, and all aware of the magnitude of wasteful promises and paper. of us who know her are proud of her spending endorsed by this body. If there is a thread connecting these For the Department of Commerce, achievements and her friendship. meanderings, it is a woolly utopianism that there is $400,000 for swordfish research. turns a genuinely felt humanitarianism and Helen Westbrook is a kind, thought- ful person who truly cares about peo- For the Department of Justice, there is a near-mystical belief in the power of parch- $1 million for the Nevada National Ju- ment into the foreign policy of a superpower. ple. She has brought professionalism, dicial College. For the Department of The choice of engagement as the motif of wisdom and dedication to each position State, there is $12.5 million for the Clinton foreign policy is a self-confession of that she has held. She is a valued and East-West Center in Hawaii, and for confusion. Of course we are engaged in the loyal friend of the Kennedy family. world. The question is: What kind of engage- We don’t have enough Helen the Small Business Administration, ment? there is $200,000 for Rural Enterprises, Westbrooks in government and in the Engagement that relies on the fictional Inc., in Durant, Oklahoma. I have com- world. She is a shining example of the ‘‘international community,’’ the powerless piled a list on my Senate website of wonderful people who answered Presi- United Nations or the recalcitrant Security these examples and other numerous dent Kennedy’s call to serve their Council (where governments hostile to our add-ons and earmarks in the report. interests can veto us at will) to legitimatize country. I’m proud of her contribution Mr. President, we must continue to American action? Or engagement guided by to public service, and I wish her well in American national interests and security work to cut unnecessary and wasteful her well-deserved retirement.∑ spending so we can begin to pay down needs? f Engagement that squanders American our debt and save billions in interest power and treasure on peacekeeping? Or en- CONFERENCE REPORT FOR THE payments. We have an obligation to en- gagement that concentrates our finite re- DEPARTMENTS OF COMMERCE, sure that Congress spends taxpayers’ sources on potential warfighting in vital JUSTICE, AND STATE, THE JUDI- hard-earned dollars prudently to pro- areas such as the Persian Gulf, the Korean CIARY, AND RELATED AGENCIES tect our balanced budget and to protect peninsula and the Taiwan Strait? APPROPRIATIONS BILL FOR THE the projected budget surpluses. The Berger cannot seem to tell the difference American public cannot understand between isolationism and realism. Which is FISCAL YEAR 2000 why we continue to earmark these the fundamental reason for the rudderless Mr. MCCAIN. Mr. President, on Octo- ∑ huge amounts of money to locality spe- mess that is Clinton foreign policy.∑ ber 20, 1999, the Senate passed the con- cific special interests at a time when f ference report for the Departments of we are trying to cut the cost of govern- Commerce, Justice, and State, the Ju- TRIBUTE TO HELEN WESTBROOK ment and return more dollars to the diciary, and Related Agencies appro- people. ∑ Mr. KENNEDY. Mr. President, I priations bill for fiscal year 2000. I Mr. President, it is a sad com- would like to take a few moments to thank the conferees for their hard mentary on the state of politics today recognize an outstanding individual work in putting forth this legislation that the Congress cannot curb its appe- who will soon be retiring from public which provides federal funding for tite to earmark funds for programs service. Helen L. Westbrook currently fighting crime, enhancing drug en- that are obviously wasteful, unneces- works in the Office of the Deputy forcement, and responding to threats of sary, or unfair. Unfortunately, how- Under Secretary of the National Oce- terrorism. This bill also addresses the ever, Members of Congress have dem- anic and Atmospheric Administration. shortcomings of the immigration proc- onstrated time and again their willing- In December, she will complete a ca- ess, funds the operation of the judicial ness to fund programs that serve their reer that has spanned many years of system, facilitates commerce through- narrowly tailored interest at the ex- distinguished service to our country. out the United States, and fulfills the pense of the national interest.∑ This is a special occasion for me and needs of the State Department and var- f the Kennedy family, as Helen is truly ious other agencies. one of our own. In 1955, as a Senator, For many years, I have tried to cut DOWNRIVER GUIDANCE CLINIC my brother John F. Kennedy visited wasteful and unnecessary spending TRIBUTE Chicopee, Massachusetts, and delivered from the annual appropriations bills— ∑ Mr. ABRAHAM. Mr. President, It is an address about a recent visit he had with only limited success, I must my great pleasure to recognize and made to Poland and Eastern Europe. admit. Nonetheless, I will continue my honor the Downriver Guidance Clinic Like many other young Americans of fight to curb wasteful pork-barrel as they celebrate their First Downriver that time, Helen heard and heeded my spending, and I regret that I must Guidance Clinic Week November 7 brother’s call to public service. She again come forward this year to object through November 13, 1999.

VerDate 29-OCT-99 05:08 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.154 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13719 For forty-one years the Downriver The assistant legislative clerk read S. CON. RES. 66 Guidance Clinic has been at the fore- as follows: Whereas November 17, 2000, will mark the front of providing exceptional health A resolution (S. Res. 214) authorizing the 200th anniversary of the occupation of the care, mental health services and sup- taking of photographs in the Chamber of the United States Capitol by the Senate and port to those people who are in need. U.S. Senate. House of Representatives; The Downriver Guidance Clinic has en- There being no objection, the Senate Whereas the story of the design and con- struction of the United States Capitol de- hanced the quality of life for children, proceeded to consider the resolution. serves wider attention; and adults and families in the Downriver Mr. HAGEL. I ask unanimous con- Whereas since 1991, Congress has supported community. Their programs have built sent the resolution be agreed to and a recently completed project to translate the foundations of support for children the motion to reconsider be laid upon previously inaccessible and richly detailed with behavioral problems, first time the table. shorthand journals of Captain Montgomery parents, teenage mothers, and adults The PRESIDING OFFICER. Without C. Meigs, the mid-nineteenth-century engi- who need help coping with unexpected objection, it is so ordered. neer responsible for construction of the Cap- changes in life. The resolution (S. Res. 214) was itol dome and Senate and House of Rep- agreed to, as follows: resentatives extensions: Now, therefore, be it What is truly remarkable about the Resolved by the Senate (the House of Rep- S. RES. 214 Downriver Guidance Center are the in- resentatives concurring), Resolved, That paragraph 1 of rule IV of the novative and progressive programs SECTION 1. PRINTING OF ‘‘CAPITOL BUILDER: they provide. The Opportunity Center Rules for the Regulation of the Senate Wing THE SHORTHAND JOURNALS OF combines traditional therapy, volun- of the United States Capitol (prohibiting the CAPTAIN MONTGOMERY C. MEIGS, teer mentoring, and other activities to taking of pictures in the Senate Chamber) be 1853–1861’’. temporarily suspended for the sole and spe- assist young people who need extra (a) IN GENERAL.—There shall be printed as cific purpose of permitting photographs to be a Senate document the book entitled ‘‘Cap- help interacting with parents, teachers taken between the first and second sessions itol Builder: The Shorthand Journals of Cap- and peers. Their Center for Excellence of the 106th Congress in order to allow the tain Montgomery C. Meigs, 1853–1861’’, pre- focuses on evaluating and assessing Senate Commission on Art to carry out its pared under the direction of the Secretary of programs as a means for improved responsibilities to publish a Senate docu- the Senate, in consultation with the Clerk of services. The Downriver Guidance Cen- ment containing works of art, historical ob- the House of Representatives and the Archi- ter programs continue to reach out to jects, and exhibits within the Senate Wing. tect of the Capitol. SEC. 2. The Sergeant at Arms of the Senate (b) SPECIFICATIONS.—The Senate document the community by providing employ- is authorized and directed to make the nec- ment programs that help ease chron- described in subsection (a) shall include il- essary arrangements to carry out this reso- lustrations and shall be in the style, form, ically unemployed people into the lution. manner, and binding as directed by the Joint workforce. The Center also provides an f Committee on Printing after consultation early childhood development which en- with the Secretary of the Senate. courages good emotional and physical AUTHORIZING PRINTING OF ‘‘CAP- (c) NUMBER OF COPIES.—In addition to the health ensuring that children enter ITOL BUILDER: THE SHORTHAND usual number of copies, there shall be print- school ready to learn. JOURNALS OF CAPTAIN MONT- ed with suitable binding the lesser of— The accomplishments and work of GOMERY C. MEIGS, 1853–1861’’ (1) 1,500 copies for the use of the Senate, the Downriver Guidance Center are to the House of Representatives, and the Archi- tect of the Capitol, to be allocated as deter- be commended. Their impact on the AUTHORIZING PRINTING OF ‘‘THE mined by the Secretary of the Senate and Downriver Community of the future is U.S. CAPITOL: A CHRONICLE OF the Clerk of the House of Representatives; or immeasurable. I applaud the Downriver CONSTRUCTION, DESIGN, AND (2) a number of copies that does not have a Guidance Center for all the help they POLITICS’’ total production and printing cost of more give others as they strive to meet the than $31,500. ever changing needs of the community Mr. HAGEL. Mr. President, I ask they serve.∑ unanimous consent that the Senate S. CON. RES. 67 f proceed to the immediate consider- Whereas the 200th anniversary of the es- ation en bloc of Senate Concurrent tablishment of the seat of government in the MEASURE READ THE FIRST Resolution 66 and Senate Concurrent District of Columbia will be observed in the TIME—H.R. 1883 Resolution 67, submitted earlier by year 2000; Mr. HAGEL. Mr. President, on behalf Senators LOTT and DASCHLE. Whereas November 17, 2000, will mark the bicentennial of the occupation of the United of the leader, I understand that H.R. The PRESIDING OFFICER. The clerk will report the concurrent resolu- States Capitol by the Senate and the House 1883 is at the desk. I now ask for its of Representatives; and first reading. tions by title. Whereas the story of the design and con- The PRESIDING OFFICER. The The legislative assistant read as fol- struction of the United States Capitol de- clerk will report the bill by title. lows: serves wider attention: Now, therefore, be it The legislative assistant read as fol- A concurrent resolution (S. Con. Res. 66) to Resolved by the Senate (the House of Rep- lows: authorize the printing of ‘‘Capitol Builder: resentatives concurring), The Shorthand Journals of Captain Mont- A bill (H.R. 1883) to provide for application SECTION 1. PRINTING OF ‘‘THE UNITED STATES gomery C. Meigs, 1853–1861.’’ CAPITOL: A CHRONICLE OF CON- of measures to foreign persons who transfer A concurrent resolution (S. Con. Res. 67) to STRUCTION, DESIGN, AND POLI- to Iran certain goods, services, or tech- authorize the printing of ‘‘The United States TICS’’. nology, and for other purposes. Capitol: A Chronicle of Construction, Design, (a) IN GENERAL.—There shall be printed as Mr. HAGEL. Mr. President, I now ask and Politics.’’ a Senate document the book entitled ‘‘The for its second reading, and I object to There being no objection, the Sen- United States Capitol: A Chronicle of Con- my own request. ator proceeded to consider the concur- struction, Design, and Politics’’, prepared by the Architect of the Capitol. The PRESIDING OFFICER. Objec- rent resolutions. (b) SPECIFICATIONS.—The Senate document tion is heard. The bill will remain at Mr. HAGEL. Mr. President, I ask described in subsection (a) shall include il- the desk. unanimous consent that the concur- lustrations and shall be in the style, form, f rent resolutions be agreed to, the pre- manner, and binding as directed by the Joint ambles be agreed to, and the motions Committee on Printing after consultation AUTHORIZING PHOTOGRAPHS IN to reconsider be laid upon the table, with the Secretary of the Senate. THE SENATE CHAMBER with the above all occurring en bloc. (c) NUMBER OF COPIES.—In addition to the Mr. HAGEL. Mr. President, I ask The PRESIDING OFFICER. Without usual number of copies, there shall be print- unanimous consent the Senate now objection, it is so ordered. ed with suitable binding the lesser of— proceed to the immediate consider- The concurrent resolutions (S. Con. (1) 6,500 copies for the use of the Senate, ation of S. Res. 214 submitted earlier the House of Representatives, and the Archi- Res. 66 and S. Con. Res. 67) were agreed tect of the Capitol, to be allocated as deter- by Senators LOTT and DASCHLE. to. mined by the Secretary of the Senate; or The PRESIDING OFFICER. The The preambles were agreed to. (2) a number of copies that does not have a clerk will report the resolution by The concurrent resolutions, with total production and printing cost of more title. their preambles, read as follows: than $143,000.

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.056 pfrm01 PsN: S02PT1 S13720 CONGRESSIONAL RECORD — SENATE November 2, 1999 MAKING CHANGES TO SENATE SEC. 2. DESIGNATION OF DUGGER MOUNTAIN to compliance with requirements for a State COMMITTEES WILDERNESS, ALABAMA. disbursement unit. (a) DESIGNATION.—There is designated as There being no objection, the Senate Mr. HAGEL. Mr. President, I ask wilderness and as a component of the Na- unanimous consent that the Senate tional Wilderness Preservation System, in proceeded to consider the bill. proceed to the immediate consider- accordance with the Wilderness Act (16 Mr. ROTH. Mr. President, I rise ation of S. Res. 215, submitted earlier U.S.C. 1131 et seq.), certain Federal land in today to introduce the Child Support Miscellaneous Amendments of 1999. by Senator LOTT. the Talladega National Forest, Alabama, The PRESIDING OFFICER. The comprising approximately 9,200 acres, as gen- This legislation is co-sponsored by Sen- erally depicted on the map entitled ‘‘Pro- clerk will report the resolution by ators MOYNIHAN, VOINOVICH, FEINSTEIN, posed Dugger Mountain Wilderness’’, dated ROBERTS, BOXER, ENZI, THOMAS, title. July 2, 1999, to be known as the ‘‘Dugger The legislative assistant read as fol- GRAMM, and KERREY. Mountain Wilderness’’. This bill would provide a more appro- lows: (b) MAP AND DESCRIPTION.— priate penalty for States that have not A resolution (S. Res. 215) making changes (1) IN GENERAL.—As soon as practicable to Senate committees for the 106th Congress. after the date of enactment of this Act, the met the deadline for establishing a Secretary of Agriculture (referred to in this State Disbursement Unit (SDU). The There being no objection, the Senate Act as the ‘‘Secretary’’) shall submit to Con- 1996 welfare reform law (P. L. 104–193) proceeded to consider the resolution. gress a map and description of the bound- made a number of important changes Mr. HAGEL. Mr. President, I ask aries of the Dugger Mountain Wilderness. to the nation’s child support system, unanimous consent that the resolution (2) FORCE AND EFFECT.—The map and de- including a requirement that States es- be agreed to and the motion to recon- scription shall have the same force and ef- tablish and operate a State Disburse- sider be laid upon the table. fect as if included in this Act, except that ment Unit (SDU) to receive child sup- The PRESIDING OFFICER. Without the Secretary may correct clerical and typo- port payments and distribute the objection, it is so ordered. graphical errors in the map and description. UBLIC AVAILABILITY money in accord with State child sup- The resolution (S. Res. 215) was (3) P .—A copy of the map and description shall be on file and port distribution rules. In general, agreed to, as follows: available for public inspection in the office States had until October 1st of this S. RES. 215 of— year to establish an SDU. Resolved, That the following change shall (A) the Chief of the Forest Service; and States that have not met this dead- (B) the Supervisor of National Forest Sys- be effective on those Senate committees list- line will lose all Federal funds for the ed below for the 106th Congress, or until tem land located in the State of Alabama. their successors are appointed: (c) MANAGEMENT.— administration of their child support Committee on Environment and Public (1) IN GENERAL.—Subject to valid existing enforcement programs, and also may Works: Mr. SMITH of New Hampshire, Chair- rights, land designated as wilderness by this be in jeopardy of losing Temporary As- man. Act shall be managed by the Secretary in ac- sistance for Needy Families (TANF) Mr. HAGEL. Mr. President, I suggest cordance with the applicable provisions of funds. the Wilderness Act (16 U.S.C. 1131 et seq.). the absence of a quorum. Although most States have met the (2) EFFECTIVE DATE EXCEPTION.—With re- deadline, for various reasons about The PRESIDING OFFICER. The spect to the Dugger Mountain Wilderness, clerk will call the roll. any reference in the Wilderness Act (16 seven States may not. This bill pro- The assistant legislative clerk pro- U.S.C. 1131 et seq.) to the effective date of vides that States may apply for an al- ceeded to call the roll. that Act shall be considered to be a reference ternative smaller, graduated penalty, Mr. HAGEL. Mr. President, I ask to the date of enactment of this Act. as described in the ‘‘Description of the unanimous consent that the order for (d) TREATMENT OF DUGGER MOUNTAIN FIRE Child Support Miscellaneous Amend- the quorum call be rescinded. TOWER.— ments of 1999.’’ (1) IN GENERAL.—Not later 2 years after the The PRESIDING OFFICER. Without Mr. President, I ask unanimous con- date of enactment of this Act, the Forest sent that a description of the bill be objection, it is so ordered. Service shall disassemble and remove from f the Dugger Mountain Wilderness the Dugger printed in the RECORD following my re- Mountain fire tower (including any sup- marks. DUGGER MOUNTAIN WILDERNESS porting structures). The PRESIDING OFFICER. Without ACT OF 1999 (2) EQUIPMENT.—The Forest Service may objection, it is so ordered. Mr. HAGEL. Mr. President, I ask use ground-based mechanical and motorized (See Exhibit 1.) unanimous consent that the Senate equipment to carry out paragraph (1). Mr. ROTH. Moreover, this legislation proceed to the immediate consider- (3) FIRE TOWER ROAD.— provides that any penalty will be ation of S. 1843, introduced earlier (A) IN GENERAL.—The road to the fire tower waived if a State establishes an SDU shall be open to motorized vehicles during within six months of the original dead- today by Senator SESSIONS. the period required to carry out paragraph The PRESIDING OFFICER. The (1) only for the purpose of removing the line, that is, by April 1, 2000. If a State clerk will report the bill by title. tower (including any supporting structures). misses the April 1st date but estab- The assistant legislative clerk read (B) PERMANENT CLOSURE.—After the period lishes an SDU within a year of the as follows: referred to in subparagraph (A), the road to deadline, that is, by September 30, 2000, A bill (S. 1843) to designate certain Federal the fire tower shall be permanently closed to the penalty shall be limited to one per- land in the Talladega National Forest, Ala- motorized use. cent of child support funds for the fis- bama, as the ‘‘Dugger Mountain Wilderness.’’ (4) APPLICABLE LAW.—The Forest Service cal year. shall carry out paragraph (1) in accordance Mr. President, in my view this alter- There being no objection, the Senate with the National Historic Preservation Act proceeded to consider the bill. (16 U.S.C. 470 et seq.). native penalty system is more suitable for technology-related program re- Mr. HAGEL. Mr. President, I ask f unanimous consent that the bill be quirements, where States may be mov- read a third time and passed, the mo- CHILD SUPPORT MISCELLANEOUS ing towards compliance but need addi- tion to reconsider be laid upon the AMENDMENTS OF 1999 tional time. Indeed, the proposed legis- table, and any statement relating to Mr. HAGEL. Mr. President, I ask lation follows similar changes made the bill be printed in the RECORD. unanimous consent that the Senate last year in providing an alternative The PRESIDING OFFICER. Without now proceed to the immediate consid- penalty for States that did not meet objection, it is so ordered. eration of S. 1844 introduced earlier the deadline for establishing an auto- The bill (S. 1843) was read the third today by Senators ROTH, MOYNIHAN, mated statewide data system for child time and passed, as follows: and others. support. In this regard, the proposed S. 1843 The PRESIDING OFFICER. The legislation would provide for a single Be it enacted by the Senate and House of Rep- clerk will report the bill by title. penalty for a State that does not meet resentatives of the United States of America in The assistant legislative clerk read either the automated data system or Congress assembled, as follows: SDU requirements. SECTION 1. SHORT TITLE. A bill (S. 1844) to amend Part D of title IV The Congressional Budget Office has This Act may be cited as the ‘‘Dugger of the Social Security Act to provide for an found this legislation has no cost. Mountain Wilderness Act of 1999’’. alternative penalty procedure with respect I urge the support of all Senators.

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.092 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13721 EXHIBIT NO. 1 Mr. MOYNIHAN. Mr. President, I rise administrative dollars for child support DESCRIPTION OF THE CHILD SUPPORT today in support of this technical, yet collection. MISCELLANEOUS AMENDMENTS OF 1999 necessary, legislation, the Child Sup- Without this legislation, the State of PRESENT LAW port Miscellaneous Amendments of Indiana could lose as much as $33.5 mil- The 1996 welfare reform law (P.L. 104–193) 1999. We live in a nation with an ever- lion, undermining the state’s ability to required States to establish and operate a increasing number of single mothers. collect child support. While child sup- State Disbursement Unit (SDU) to receive About one-third (32.8%) of all children port collection affects the budgets of child support payments and distribute the born in the United States last year the Federal and State Governments, it money in accord with State child support were born outside of marriage. At a distribution rules. The SDU may be operated most importantly affects the children by a single State agency, two of more State minimum, we need a comprehensive for whom it is intended. The system agencies under a regional cooperative agree- and effective child support system to was designed so children would at least ment, or by a contractor responsible to the see to it that non-custodial parents— have the economic support of both State agency. Alternatively, the SDU may often fathers—provide for these chil- their parents. be established by linking local disbursement dren. It is important that Congress con- units, such as counties, under an agreement Maintaining a central unit for dis- tinue to find ways to collect child sup- with the Secretary of Health and Human bursing and collecting child support port owed to children from noncusto- Services. States that processed receipt of payments in each state is essential. child support payments through their courts dial parents. Child support administra- at the time of enactment of the 1996 welfare This eases the burden on the business tive dollars help states accomplish that reform law enacted had until October 1, 1999, community, whose cooperation we goal. to operate an SDU. States that did not proc- need. Unfortunately, a handful of There are other steps Congress can ess child support payments through the states appear to have missed the statu- take to reconnect noncustodial parents courts were required to be operating an SDU tory deadline for having such a central with their children and encourage by October 1, 1998. unit in operation. Under current law, The penalty for not meeting the SDU re- them to pay child support. As we con- all Federal funding for the child sup- tinue to discuss the intricacies of child quirement is the loss of all Federal child sup- port programs in these states will be port payments. States receive Federal funds support collection, the need for a child for child support enforcement administra- withdrawn. to have the emotional and financial tion according to a matching formula. Fur- This is too harsh of a penalty. States support of both parents should be in- thermore, if a state cannot certify that it are missing the deadline because they corporated into the discussion. I look has an approved child support enforcement are simply behind schedule in their forward to having that discussion in plan—including an SDU—when it renews its procurement effort or because of a the near future. Temporary Assistance for Needy Families broader failing in the computer sys- I thank Senator ROTH and Senator (TANF) plan (i.e., every 27 months), it is not tems undergirding their child support MOYNIHAN for their leadership on this eligible for TANF funds. programs. This legislation would pro- issue and for acknowledging the need EXPLANATION OF PROVISION vide an alternative, more modest, fi- to provide states with more time to im- States not operating an approved State nancial penalty for those states which plement a child support collection and Disbursement Unit (SDU) by October 1, 1999, are late in meeting the deadline. For disbursement system that works. I may apply to the Secretary for an alter- those states suffering a general failure native penalty. To qualify for the alternative urge my colleagues to support this leg- of their child support computer sys- penalty, the Secretary must find that the islation. State has made and is continuing to make a tems it would not impose a penalty be- cause those states have already been Mr. HAGEL. Mr. President, I ask good faith effort to comply, and the State unanimous consent that the bill be must submit a corrective plan by April 1, penalized. 2000. If these conditions are fulfilled, the I thank the Chairman for his work on read a third time and passed, the mo- Secretary must not disapprove the State this matter, simple one of reasonable tion to reconsider be laid upon the child support enforcement plan. Instead, the program administration. table, and any statements relating to Secretary must reduce the amount the State Mr. BAYH. Mr. President, today I the bill be printed in the RECORD. would otherwise have received in Federal rise as an original cosponsor of the The PRESIDING OFFICER. Without child support payments by the alternative Child Support Miscellaneous Amend- objection, it is so ordered. penalty amount for the fiscal year. The alternative penalty amount is equal ments of 1999. This bill will provide The bill (S. 1844) was read the third to: 4 percent of the penalty base in the first states, such as Indiana with additional time and passed, as follows: fiscal year; 8 percent in the second fiscal time to either obtain a waiver from the S. 1844 year; 16 percent in the third fiscal year; 25 Department of Health and Human Be it enacted by the Senate and House of Rep- percent in the fourth fiscal year; and 30 per- Services or comply with the state dis- resentatives of the United States of America in cent in the fifth and subsequent fiscal years. bursement unit requirement without Congress assembled, The penalty base is defined as the Federal being penalized. It is important that SECTION. 1. SHORT TITLE. administrative reimbursement for child sup- states are provided with sufficient time port enforcement (i.e., the 66 percent Federal This Act may be cited as the ‘‘Child Sup- matching funds) that otherwise would have to determine what system will allow port Miscellaneous Amendments of 1999’’. been payable to the State in the previous fis- them to collect and disburse child sup- SEC. 2. ALTERNATIVE PENALTY PROCEDURE RE- cal year. port payments most efficiently. LATING TO COMPLIANCE WITH RE- If a State that is subject to a penalty has For many states the most economi- QUIREMENTS RELATING TO STATE an approved SDU on or before April 1, 2000, cal and administratively efficient DISBURSEMENT UNIT. the Secretary shall waive the penalty. If a means of delivering and collecting (a) IN GENERAL.—Section 455(a) of the So- State that is subject to a penalty achieves child support payments is to comply cial Security Act (42 U.S.C. 655(a)) is amend- ed by adding at the end the following: compliance after April 1, 2000, and on or be- with the requirement and create a cen- fore September 30, 2000, the penalty amount ‘‘(5)(A)(i) If— shall be 1 percent of the penalty base. tral state disbursement unit. However, ‘‘(I) the Secretary determines that a State In addition, the Secretary may not impose the Department of Health and Human plan under section 454 would (in the absence a penalty against a State for a fiscal year for Services has recognized some excep- of this paragraph) be disapproved for the fail- which the State has already been penalized tions to that general rule and granted ure of the State to comply with subpara- for noncompliance with respect to the auto- those states a waiver. The State of In- graphs (A) and (B)(i) of section 454(27), and mated data processing system requirement, diana has applied for a waiver but is that the State has made and is continuing to as provided under Section 455 of the Social awaiting the Secretary’s determination make a good faith effort to so comply; and Security Act. of whether or not to grant the waiver ‘‘(II) the State has submitted to the Sec- The loss of Temporary Assistance to Needy retary, not later than April 1, 2000, a correc- Families block grant funds by a State for request. This legislation will allow In- tive compliance plan that describes how, by failure to substantially comply with one or diana, and the other states in a similar when, and at what cost the State will more of the IV-D requirements is not appli- predicament, the time they need to de- achieve such compliance, which has been ap- cable with respect to the SDU requirements termine what system works best for proved by the Secretary, (or the automated systems requirement). them. In addition, the penalty these then the Secretary shall not disapprove the EFFECTIVE DATE states face will be reduced. States will State plan under section 454, and the Sec- October 1, 1999. not be in jeopardy of losing all of their retary shall reduce the amount otherwise

VerDate 29-OCT-99 05:08 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.101 pfrm01 PsN: S02PT1 S13722 CONGRESSIONAL RECORD — SENATE November 2, 1999 payable to the State under paragraph (1)(A) There being no objection, the Senate SEC. 505. AUTHORIZATION OF APPROPRIATIONS. of this subsection for the fiscal year by the proceeded to consider the bill. There are authorized to be appropriated to penalty amount. carry out this title $5,000,000. Funds appro- AMENDMENT NO. 2504 ‘‘(ii) All failures of a State during a fiscal priated under this section shall remain year to comply with any of the requirements (Purpose: To support the Robert T. Stafford available until expended. of section 454B shall be considered a single Public Policy Institute) Mr. HAGEL. Mr. President, I ask failure of the State to comply with section Mr. HAGEL. Mr. President, Senator unanimous consent that the amend- 454(27)(A) during the fiscal year for purposes JEFFORDS has an amendment at the ment be agreed to, the bill be read a of this paragraph. ‘‘(B) In this paragraph: desk, and I ask for its consideration. third time and passed, the motion to ‘‘(i) The term ‘penalty amount’ means, The PRESIDING OFFICER. The reconsider be laid upon the table, and with respect to a failure of a State to comply clerk will report. any statements relating to the bill be with subparagraphs (A) and (B)(i) of section The assistant legislative clerk read printed in the RECORD. 454(27)— as follows: The PRESIDING OFFICER. Without ‘‘(I) 4 percent of the penalty base, in the The Senator from Nebraska [Mr. HAGEL] objection, it is so ordered. case of the 1st fiscal year in which such a for Mr. JEFFORDS, proposes an amendment The amendment (No. 2504) was agreed failure by the State occurs (regardless of numbered 2504. to. whether a penalty is imposed in that fiscal The amendment is as follows: The bill (S. 440), as amended, was year under this paragraph with respect to read the third time and passed, as fol- the failure), except as provided in subpara- At the end add the following: lows: graph (C)(ii); TITLE V—ROBERT T. STAFFORD PUBLIC S. 440 ‘‘(II) 8 percent of the penalty base, in the POLICY INSTITUTE case of the 2nd such fiscal year; Be it enacted by the Senate and House of Rep- ‘‘(III) 16 percent of the penalty base, in the SEC. 501. DEFINITIONS. resentatives of the United States of America in case of the 3rd such fiscal year; In this section: Congress assembled, (1) ENDOWMENT FUND.—The term ‘‘endow- ‘‘(IV) 25 percent of the penalty base, in the TITLE I—HOWARD BAKER SCHOOL OF ment fund’’ means a fund established by the case of the 4th such fiscal year; or GOVERNMENT ‘‘(V) 30 percent of the penalty base, in the Robert T. Stafford Public Policy Institute for the purpose of generating income for the SEC. 101. DEFINITIONS. case of the 5th or any subsequent such fiscal In this title: year. support of authorized activities. (2) ENDOWMENT FUND CORPUS.—The term (1) BOARD.—The term ‘‘Board’’ means the ‘‘(ii) The term ‘penalty base’ means, with Board of Advisors established under section respect to a failure of a State to comply with ‘‘endowment fund corpus’’ means an amount equal to the grant or grants awarded under 104. subparagraphs (A) and (B)(i) of section 454(27) (2) ENDOWMENT FUND.—The term ‘‘endow- during a fiscal year, the amount other wise this title. (3) ENDOWMENT FUND INCOME.—The term ment fund’’ means a fund established by the payable to the State under paragraph (1)(A) University of Tennessee in Knoxville, Ten- of this subsection for the preceding fiscal ‘‘endowment fund income’’ means an amount equal to the total value of the endowment nessee, for the purpose of generating income year. for the support of the School. ‘‘(C)(i) The Secretary shall waive all pen- fund minus the endowment fund corpus. (4) INSTITUTE.—The term ‘‘institute’’ (3) SCHOOL.—The term ‘‘School’’ means the alties imposed against a State under this Howard Baker School of Government estab- paragraph for any failure of the State to means the Robert T. Stafford Public Policy Institute. lished under this title. comply with subparagraphs (A) and (B)(i) of (4) SECRETARY.—The term ‘‘Secretary’’ section 454(27) if the Secretary determines (5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Education. means the Secretary of Education. that, before April 1, 2000, the State has (5) UNIVERSITY.—The term ‘‘University’’ SEC. 502. PROGRAM AUTHORIZED. achieved such compliance. means the University of Tennessee in Knox- ‘‘(ii) If a State with respect to which a re- (a) GRANTS.—From the funds appropriated ville, Tennessee. duction is required to be made under this under section 505, the Secretary is author- SEC. 102. HOWARD BAKER SCHOOL OF GOVERN- paragraph with respect to a failure to com- ized to award a grant in an amount of MENT. ply with subparagraphs (A) and (B)(i) of sec- $5,000,000 to the Robert T. Stafford Public From the funds authorized to be appro- tion 454(27) achieves compliance with such Policy Institute. priated under section 106, the Secretary is section on or after April 1, 2000, and on or be- (b) APPLICATION.—No grant payment may authorized to award a grant to the Univer- fore September 30, 2000, then the penalty be made under this section except upon an sity for the establishment of an endowment amount applicable to the State shall be 1 application at such time, in such manner, fund to support the Howard Baker School of percent of the penalty base with respect to and containing or accompanied by such in- Government at the University of Tennessee the failure involved. formation as the Secretary may require. in Knoxville, Tennessee. ‘‘(D) The Secretary may not impose a pen- SEC. 503. AUTHORIZED ACTIVITIES. SEC. 103. DUTIES. alty under this paragraph against a State for Funds appropriated under this title may be In order to receive a grant under this title, a fiscal year for which the amount otherwise used— the University shall establish the School. payable to the State under paragraph (1)(A) (1) to further the knowledge and under- The School shall have the following duties: of this subsection is reduced under paragraph standing of students of all ages about edu- (1) To establish a professorship to improve (4) for failure to comply with section cation, the environment, and public service; teaching and research related to, enhance 454(24)(A).’’. (2) to increase the awareness of the impor- the curriculum of, and further the knowledge (b) INAPPLICABILITY OF PENALTY UNDER tance of public service, to foster among the and understanding of, the study of demo- TANF PROGRAM.—Section 409(a)(8)(A)(i)(III) youth of the United States greater recogni- cratic institutions, including aspects of re- of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is tion of the role of public service in the devel- gional planning, public administration, and amended by striking ‘‘section 454(24)’’ and in- opment of the United States, and to promote public policy. serting ‘‘paragraph (24) or (27)(A) of section public service as a career choice; (2) To establish a lecture series to increase 454’’. (3) to provide or support scholarships; the knowledge and awareness of the major (c) EFFECTIVE DATE.—The amendments (4) to conduct educational, archival, or public issues of the day in order to enhance made by this section shall take effect on Oc- preservation activities; tober 1, 1999. informed citizen participation in public af- (5) to construct or renovate library and re- fairs. f search facilities for the collection and com- (3) To establish a fellowship program for PROVIDING SUPPORT FOR CER- pilation of research materials for use in car- students of government, planning, public ad- rying out programs of the Institute; TAIN INSTITUTES AND SCHOOLS ministration, or public policy who have dem- (6) to establish or increase an endowment onstrated a commitment and an interest in Mr. HAGEL. Mr. President, I ask fund for use in carrying out the programs of pursuing a career in public affairs. unanimous consent that S. 440 be dis- the Institute. (4) To provide appropriate library mate- charged from the HELP Committee SEC. 504. ENDOWMENT FUND. rials and appropriate research and instruc- and, further, that the Senate now pro- (a) MANAGEMENT.—An endowment fund cre- tional equipment for use in carrying out aca- ceed to its consideration. ated with funds authorized under this title demic and public service programs, and to The PRESIDING OFFICER. Without shall be managed in accordance with the enhance the existing United States Presi- dential and public official manuscript collec- objection, it is so ordered. The clerk standard endowment policies established by the Institute. tions. will report the bill by title. (b) USE OF ENDOWMENT FUND INCOME.—En- (5) To support the professional develop- The assistant legislative clerk read dowment fund income earned (on or after the ment of elected officials at all levels of gov- as follows: date of enactment of this title) may be used ernment. A bill (S. 440) to provide support for certain to support the activities authorized under SEC. 104. ADMINISTRATION. institutes and schools. section 503. (a) BOARD OF ADVISORS.—

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(1) IN GENERAL.—The School shall operate SEC. 202. PROGRAM AUTHORIZED. ation of the Institute, including expenses of with the advice and guidance of a Board of (a) GRANTS.—From the funds appropriated operations and maintenance, administration, Advisors consisting of 13 individuals ap- under section 206, the Secretary is author- academic and support personnel, construc- pointed by the Vice Chancellor for Academic ized to award a grant to the Ohio State Uni- tion and renovation, community and student Affairs of the University. versity for the establishment of an endow- services programs, technical assistance, and (2) APPOINTMENTS.—Of the individuals ap- ment fund to support the John Glenn Insti- research. No endowment fund income or en- pointed under paragraph (1)— tute for Public Service and Public Policy. dowment fund corpus may be used for any (A) 5 shall represent the University; The Secretary may enter into agreements type of support of the executive officers of (B) 2 shall represent Howard Baker, his with the University and include in any the University or for any commercial enter- family, or a designee thereof; agreement made pursuant to this title such prise or endeavor. Except as provided in sub- (C) 5 shall be representative of business or provisions as are determined necessary by section (b), the University shall not, in the government; and the Secretary to carry out this title. aggregate, withdraw or expend more than 50 (D) 1 shall be the Governor of Tennessee, or (b) PURPOSES.—The Institute shall have percent of the total aggregate endowment the Governor’s designee. the following purposes: fund income earned prior to the time of (3) EX OFFICIO MEMBERS.—The Vice Chan- (1) To sponsor classes, internships, commu- withdrawal or expenditure. cellor for Academic Affairs and the Dean of nity service activities, and research projects (b) SPECIAL RULE.—The Secretary is au- the College of Arts and Sciences at the Uni- to stimulate student participation in public thorized to permit the University to with- versity shall serve as an ex officio member of service, in order to foster America’s next draw or expend more than 50 percent of the the Board. generation of leaders. total aggregate endowment fund income (b) CHAIRPERSON.— (2) To conduct scholarly research in con- whenever the University demonstrates such (1) IN GENERAL.—The Chancellor, with the junction with public officials on significant withdrawal or expenditure is necessary be- concurrence of the Vice Chancellor for Aca- issues facing society and to share the results cause of— demic Affairs, of the University shall des- of such research with decisionmakers and (1) a financial emergency, such as a pend- ignate 1 of the individuals first appointed to legislators as the decisionmakers and legis- ing insolvency or temporary liquidity prob- the Board under subsection (a) as the Chair- lators address such issues. lem; person of the Board. The individual so des- (3) To offer opportunities to attend semi- (2) a life-threatening situation occasioned ignated shall serve as Chairperson for 1 year. nars on such topics as budgeting and finance, by a natural disaster or arson; or (3) another unusual occurrence or exigent (2) REQUIREMENTS.—Upon the expiration of ethics, personnel management, policy eval- the term of the Chairperson of the individual uations, and regulatory issues that are de- circumstance. (c) REPAYMENT.— designated as Chairperson under paragraph signed to assist public officials in learning (1) INCOME.—If the University withdraws or (1) or the term of the Chairperson elected more about the political process and to ex- expends more than the endowment fund in- under this paragraph, the members of the pand the organizational skills and policy- come authorized by this section, the Univer- Board shall elect a Chairperson of the Board making abilities of such officials. sity shall repay the Secretary an amount from among the members of the Board. (4) To educate the general public by spon- equal to one-third of the amount improperly soring national conferences, seminars, publi- SEC. 105. ENDOWMENT FUND. expended (representing the Federal share (a) MANAGEMENT.—The endowment fund cations, and forums on important public thereof). shall be managed in accordance with the issues. (2) CORPUS.—Except as provided in section standard endowment policies established by (5) To provide access to Senator John 202(e)— the University of Tennessee System. Glenn’s extensive collection of papers, policy (A) the University shall not withdraw or (b) USE OF INTEREST AND INVESTMENT IN- decisions, and memorabilia, enabling schol- expend any endowment fund corpus; and COME.—Interest and other investment in- ars at all levels to study the Senator’s work. (B) if the University withdraws or expends come earned (on or after the date of enact- (c) DEPOSIT INTO ENDOWMENT FUND.—The any endowment fund corpus, the University ment of this subsection) from the endow- University shall deposit the proceeds of any shall repay the Secretary an amount equal ment fund may be used to carry out the du- grant received under this section into the en- to one-third of the amount withdrawn or ex- ties of the School under section 103. dowment fund. pended (representing the Federal share (c) DISTRIBUTION OF INTEREST AND INVEST- (d) MATCHING FUNDS REQUIREMENT.—The thereof) plus any endowment fund income MENT INCOME.—Funds realized from interest University may receive a grant under this and other investment income earned (on or section only if the University has deposited earned thereon. after the date of enactment of this sub- in the endowment fund established under SEC. 205. ENFORCEMENT. section) shall be available for expenditure by this title an amount equal to one-third of (a) IN GENERAL.—After notice and an op- the University for purposes consistent with such grant and has provided adequate assur- portunity for a hearing, the Secretary is au- section 103, as recommended by the Board. ances to the Secretary that the University thorized to terminate a grant and recover The Board shall encourage programs to es- will administer the endowment fund in ac- any grant funds awarded under this section if the University— tablish partnerships, to leverage private cordance with the requirements of this title. (1) withdraws or expends any endowment funds, and to match expenditures from the The source of the funds for the University fund corpus, or any endowment fund income endowment fund. match shall be derived from State, private in excess of the amount authorized by sec- SEC. 106. AUTHORIZATION OF APPROPRIATIONS. foundation, corporate, or individual gifts or tion 204, except as provided in section 202(e); There is authorized to be appropriated to bequests, but may not include Federal funds (2) fails to invest the endowment fund cor- carry out this title $10,000,000. Funds appro- or funds derived from any other federally pus or endowment fund income in accordance priated under this section shall remain supported fund. with the investment requirements described available until expended. (e) DURATION; CORPUS RULE.—The period of any grant awarded under this section shall in section 203; or TITLE II—JOHN GLENN INSTITUTE FOR (3) fails to account properly to the Sec- PUBLIC SERVICE AND PUBLIC POLICY not exceed 20 years, and during such period the University shall not withdraw or expend retary, or the General Accounting Office if SEC. 201. DEFINITIONS. properly designated by the Secretary to con- In this title: any of the endowment fund corpus. Upon ex- piration of the grant period, the University duct an audit of funds made available under (1) ENDOWMENT FUND.—The term ‘‘endow- may use the endowment fund corpus, plus this title, pursuant to such rules and regula- ment fund’’ means a fund established by the tions as may be prescribed by the Comp- University for the purpose of generating in- any endowment fund income for any edu- cational purpose of the University. troller General of the United States, con- come for the support of the Institute. cerning investments and expenditures of the (2) ENDOWMENT FUND CORPUS.—The term SEC. 203. INVESTMENTS. endowment fund corpus or endowment fund ‘‘endowment fund corpus’’ means an amount (a) IN GENERAL.—The University shall in- income. equal to the grant or grants awarded under vest the endowment fund corpus and endow- (b) TERMINATION.—If the Secretary termi- this title plus an amount equal to the ment fund income in accordance with the nates a grant under subsection (a), the Uni- matching funds required under section 202(d). University’s investment policy approved by versity shall return to the Treasury of the (3) ENDOWMENT FUND INCOME.—The term the Ohio State University Board of Trustees. United States an amount equal to the sum of ‘‘endowment fund income’’ means an amount (b) JUDGMENT AND CARE.—The University, the original grant or grants under this title, equal to the total value of the endowment in investing the endowment fund corpus and plus any endowment fund income earned fund minus the endowment fund corpus. endowment fund income, shall exercise the thereon. The Secretary may direct the Uni- (4) INSTITUTE.—The term ‘‘Institute’’ judgment and care, under circumstances versity to take such other appropriate meas- means the John Glenn Institute for Public then prevailing, which a person of prudence, ures to remedy any violation of this title and Service and Public Policy described in sec- discretion, and intelligence would exercise in to protect the financial interest of the tion 202. the management of the person’s own busi- United States. (5) SECRETARY.—The term ‘‘Secretary’’ ness affairs. SEC. 206. AUTHORIZATION OF APPROPRIATIONS. means the Secretary of Education. SEC. 204. WITHDRAWALS AND EXPENDITURES. There is authorized to be appropriated to (6) UNIVERSITY.—The term ‘‘University’’ (a) IN GENERAL.—The University may with- carry out this title $10,000,000. Funds appro- means the Ohio State University at Colum- draw and expend the endowment fund income priated under this section shall remain bus, Ohio. to defray any expenses necessary to the oper- available until expended.

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TITLE III—OREGON INSTITUTE OF PUBLIC (3) EX-OFFICIO MEMBER.—The Director of mined necessary by the Secretary to carry SERVICE AND CONSTITUTIONAL STUDIES the Mark O. Hatfield School of Government out this title. SEC. 301. DEFINITIONS. at Portland State University shall serve as (b) DUTIES.—In order to receive a grant In this title: an ex-officio member of the Leadership under this title, the University shall estab- (1) ENDOWMENT FUND.—The term ‘‘endow- Council. lish the Institute. The Institute, in addition ment fund’’ means a fund established by (b) CHAIRPERSON.— to recognizing more than 40 years of public Portland State University for the purpose of (1) IN GENERAL.—The President of Portland service to Illinois, to the Nation, and to the generating income for the support of the In- State University shall designate 1 of the in- world, shall engage in research, analysis, de- stitute. dividuals first appointed to the Leadership bate, and policy recommendations affecting (2) INSTITUTE.—The term ‘‘Institute’’ Council under subsection (a) as the Chair- world hunger, mass media, foreign policy, means the Oregon Institute of Public Service person of the Leadership Council. The indi- education, and employment. and Constitutional Studies established under vidual so designated shall serve as Chair- (c) DEPOSIT INTO ENDOWMENT FUND.—The this title. person for 1 year. University shall deposit the proceeds of any (3) SECRETARY.—The term ‘‘Secretary’’ (2) REQUIREMENT.—Upon the expiration of grant received under this section into the en- means the Secretary of Education. the term of the Chairperson of the individual dowment fund. SEC. 302. OREGON INSTITUTE OF PUBLIC SERV- designated as Chairperson under paragraph (d) MATCHING FUNDS REQUIREMENT.—The ICE AND CONSTITUTIONAL STUDIES. (1), or the term of the Chairperson elected University may receive a grant under this From the funds appropriated under section under this paragraph, the members of the section only if the University has deposited 306, the Secretary is authorized to award a Leadership Council shall elect a Chairperson in the endowment fund established under grant to Portland State University at Port- of the Leadership Council from among the this title an amount equal to one-third of land, Oregon, for the establishment of an en- members of the Leadership Council. such grant and has provided adequate assur- dowment fund to support the Oregon Insti- SEC. 305. ENDOWMENT FUND. ances to the Secretary that the University tute of Public Service and Constitutional (a) MANAGEMENT.—The endowment fund will administer the endowment fund in ac- Studies at the Mark O. Hatfield School of shall be managed in accordance with the cordance with the requirements of this title. Government at Portland State University. standard endowment policies established by The source of the funds for the University SEC. 303. DUTIES. the Oregon University System. match shall be derived from State, private In order to receive a grant under this title (b) USE OF INTEREST AND INVESTMENT IN- foundation, corporate, or individual gifts or the Portland State University shall establish COME.—Interest and other investment in- bequests, but may not include Federal funds the Institute. The Institute shall have the come earned (on or after the date of enact- or funds derived from any other federally following duties: ment of this subsection) from the endow- supported fund. (1) To generate resources, improve teach- ment fund may be used to carry out the du- (e) DURATION; CORPUS RULE.—The period of ing, enhance curriculum development, and ties of the Institute under section 303. any grant awarded under this section shall further the knowledge and understanding of (c) DISTRIBUTION OF INTEREST AND INVEST- not exceed 20 years, and during such period students of all ages about public service, the MENT INCOME.—Funds realized from interest the University shall not withdraw or expend United States Government, and the Con- and other investment income earned (on or any of the endowment fund corpus. Upon ex- stitution of the United States of America. after the date of enactment of this sub- piration of the grant period, the University (2) To increase the awareness of the impor- section) shall be spent by Portland State may use the endowment fund corpus, plus tance of public service, to foster among the University in collaboration with Willamette any endowment fund income for any edu- youth of the United States greater recogni- University, George Fox University, the Con- cational purpose of the University. tion of the role of public service in the devel- stitution Project, Warner Pacific University, SEC. 403. INVESTMENTS. opment of the United States, and to promote Oregon Health Sciences University, and (a) IN GENERAL.—The University shall in- public service as a career choice. other appropriate educational institutions or vest the endowment fund corpus and endow- (3) To establish a Mark O. Hatfield Fellows community-based organizations. In expend- ment fund income in those low-risk instru- program for students of government, public ing such funds, the Leadership Council shall ments and securities in which a regulated in- policy, public health, education, or law who encourage programs to establish partner- surance company may invest under the laws have demonstrated a commitment to public ships, to leverage private funds, and to of the State of Illinois, such as federally in- service through volunteer activities, re- match expenditures from the endowment sured bank savings accounts or comparable search projects, or employment. fund. interest bearing accounts, certificates of de- (4) To create library and research facilities SEC. 306. AUTHORIZATION OF APPROPRIATIONS. posit, money market funds, or obligations of for the collection and compilation of re- There is authorized to be appropriated to the United States. search materials for use in carrying out pro- carry out this title $3,000,000. (b) JUDGMENT AND CARE.—The University, grams of the Institute. in investing the endowment fund corpus and TITLE IV—PAUL SIMON PUBLIC POLICY (5) To support the professional develop- endowment fund income, shall exercise the INSTITUTE ment of elected officials at all levels of gov- judgment and care, under circumstances ernment. SEC. 401. DEFINITIONS. then prevailing, which a person of prudence, SEC. 304. ADMINISTRATION. In this title: discretion, and intelligence would exercise in (a) LEADERSHIP COUNCIL.— (1) ENDOWMENT FUND.—The term ‘‘endow- the management of the person’s own busi- (1) IN GENERAL.—In order to receive a grant ment fund’’ means a fund established by the ness affairs. under this title Portland State University University for the purpose of generating in- SEC. 404. WITHDRAWALS AND EXPENDITURES. shall ensure that the Institute operates come for the support of the Institute. (a) IN GENERAL.—The University may with- under the direction of a Leadership Council (2) ENDOWMENT FUND CORPUS.—The term draw and expend the endowment fund income (in this title referred to as the ‘‘Leadership ‘‘endowment fund corpus’’ means an amount to defray any expenses necessary to the oper- Council’’) that— equal to the grant or grants awarded under ation of the Institute, including expenses of ‘‘(A) consists of 15 individuals appointed by this title plus an amount equal to the operations and maintenance, administration, the President of Portland State University; matching funds required under section 402(d). academic and support personnel, construc- and (3) ENDOWMENT FUND INCOME.—The term tion and renovation, community and student ‘‘(B) is established in accordance with this ‘‘endowment fund income’’ means an amount services programs, technical assistance, and section. equal to the total value of the endowment research. No endowment fund income or en- (2) APPOINTMENTS.—Of the individuals ap- fund minus the endowment fund corpus. dowment fund corpus may be used for any pointed under paragraph (1)(A)— (4) INSTITUTE.—The term ‘‘Institute’’ type of support of the executive officers of (A) Portland State University, Willamette means the Paul Simon Public Policy Insti- the University or for any commercial enter- University, the Constitution Project, George tute described in section 402. prise or endeavor. Except as provided in sub- Fox University, Warner Pacific University, (5) SECRETARY.—The term ‘‘Secretary’’ section (b), the University shall not, in the and Oregon Health Sciences University shall means the Secretary of Education. aggregate, withdraw or expend more than 50 each have a representative; (6) UNIVERSITY.—The term ‘‘University’’ percent of the total aggregate endowment (B) at least 1 shall represent Mark O. Hat- means Southern Illinois University at fund income earned prior to the time of field, his family, or a designee thereof; Carbondale, Illinois. withdrawal or expenditure. (C) at least 1 shall have expertise in ele- SEC. 402. PROGRAM AUTHORIZED. (b) SPECIAL RULE.—The Secretary is au- mentary and secondary school social (a) GRANTS.—From the funds appropriated thorized to permit the University to with- sciences or governmental studies; under section 406, the Secretary is author- draw or expend more than 50 percent of the (D) at least 2 shall be representative of ized to award a grant to Southern Illinois total aggregate endowment fund income business or government and reside outside of University for the establishment of an en- whenever the University demonstrates such Oregon; dowment fund to support the Paul Simon withdrawal or expenditure is necessary be- (E) at least 1 shall be an elected official; Public Policy Institute. The Secretary may cause of— and enter into agreements with the University (1) a financial emergency, such as a pend- (F) at least 3 shall be leaders in the private and include in any agreement made pursuant ing insolvency or temporary liquidity prob- sector. to this title such provisions as are deter- lem;

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.106 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13725 (2) a life-threatening situation occasioned ized to award a grant in an amount of ORDER FOR ADJOURNMENT by a natural disaster or arson; or $5,000,000 to the Robert T. Stafford Public (3) another unusual occurrence or exigent Policy Institute. Mr. HAGEL. Mr. President, if there is circumstance. (b) APPLICATION.—No grant payment may no further business to come before the (c) REPAYMENT.— be made under this section except upon an Senate, I now ask unanimous consent (1) INCOME.—If the University withdraws or application at such time, in such manner, that the Senate stand in adjournment expends more than the endowment fund in- and containing or accompanied by such in- under the previous order, following the come authorized by this section, the Univer- formation as the Secretary may require. remarks of Senator WYDEN. sity shall repay the Secretary an amount SEC. 503. AUTHORIZED ACTIVITIES. The PRESIDING OFFICER. Without equal to one-third of the amount improperly Funds appropriated under this title may be expended (representing the Federal share objection, it is so ordered. used— thereof). Mr. HAGEL. Mr. President, I yield (1) to further the knowledge and under- (2) CORPUS.—Except as provided in section the floor. standing of students of all ages about edu- 402(e)— Mr. WYDEN addressed the Chair. cation, the environment, and public service; (A) the University shall not withdraw or The PRESIDING OFFICER. The Sen- (2) to increase the awareness of the impor- expend any endowment fund corpus; and ator from Oregon. tance of public service, to foster among the (B) if the University withdraws or expends youth of the United States greater recogni- f any endowment fund corpus, the University shall repay the Secretary an amount equal tion of the role of public service in the devel- PRESCRIPTION DRUG COVERAGE to one-third of the amount withdrawn or ex- opment of the United States, and to promote FOR OUR NATION’S ELDERLY public service as a career choice; pended (representing the Federal share CITIZENS thereof) plus any endowment fund income (3) to provide or support scholarships; earned thereon. (4) to conduct educational, archival, or Mr. WYDEN. Mr. President, I am on preservation activities; SEC. 405. ENFORCEMENT. the floor tonight for what is really the (5) to construct or renovate library and re- (a) IN GENERAL.—After notice and an op- 10th time in recent days to talk about portunity for a hearing, the Secretary is au- search facilities for the collection and com- the need for decent prescription drug pilation of research materials for use in car- thorized to terminate a grant and recover coverage for the Nation’s elderly citi- any grant funds awarded under this section rying out programs of the Institute; (6) to establish or increase an endowment zens. There is one bipartisan bill now if the University— before the Senate. It is the Snowe- (1) withdraws or expends any endowment fund for use in carrying out the programs of fund corpus, or any endowment fund income the Institute. Wyden bill. I believe so strongly in this in excess of the amount authorized by sec- SEC. 504. ENDOWMENT FUND. issue because of what I am hearing tion 404, except as provided in section 402(e); (a) MANAGEMENT.—An endowment fund cre- from senior citizens in my home State (2) fails to invest the endowment fund cor- ated with funds authorized under this title and now, frankly, from across the pus or endowment fund income in accordance shall be managed in accordance with the United States. with the investment requirements described standard endowment policies established by What I have decided to do, as part of in section 403; or the Institute. the effort to advance the prospect of (3) fails to account properly to the Sec- (b) USE OF ENDOWMENT FUND INCOME.—En- dealing with this issue and dealing retary, or the General Accounting Office if dowment fund income earned (on or after the properly designated by the Secretary to con- date of enactment of this title) may be used with it on a bipartisan basis, is to come duct an audit of funds made available under to support the activities authorized under to the floor as frequently as I can in this title, pursuant to such rules and regula- section 503. the hectic Senate schedule to read tions as may be proscribed by the Comp- SEC. 505. AUTHORIZATION OF APPROPRIATIONS. from some of these bills I am getting troller General of the United States, con- There are authorized to be appropriated to from the Nation’s senior citizens. cerning investments and expenditures of the carry out this title $5,000,000. Funds appro- As you can see in the poster next to endowment fund corpus or endowment fund priated under this section shall remain us, on behalf of the Snowe-Wyden legis- income. available until expended. (b) TERMINATION.—If the Secretary termi- lation, I am urging seniors to send in nates a grant under subsection (a), the Uni- f copies of their prescription drug bills versity shall return to the Treasury of the directly to us at the United States Sen- United States an amount equal to the sum of ORDERS FOR WEDNESDAY, ate, Washington, DC 20510, because I the original grant or grants under this title, NOVEMBER 3, 1999 would like to see the Senate deal with plus any endowment fund income earned this issue and not just put it off be- thereon. The Secretary may direct the Uni- Mr. HAGEL. Mr. President, I ask versity to take such other appropriate meas- unanimous consent that when the Sen- cause some are saying it is too difficult ures to remedy any violation of this title and ate completes its business today, it ad- and too hard to deal with in this con- to protect the financial interest of the journ until the hour of 9:30 a.m. on tentious climate. I believe Members of United States. Wednesday, November 3. I further ask the Senate are sent here to deal with SEC. 406. AUTHORIZATION OF APPROPRIATIONS. consent that on Wednesday, imme- tough issues. This is one that would There is authorized to be appropriated to meet an enormous need. carry out this title $3,000,000. Funds appro- diately following the prayer, the Jour- nal of proceedings be approved to date, For a number of years before I was priated under this section shall remain elected to the Congress, I served as di- available until expended. the morning hour be deemed expired, rector of the Oregon Gray Panthers. TITLE V—ROBERT T. STAFFORD PUBLIC the time for the two leaders be re- POLICY INSTITUTE served for their use later in the day, The need for coverage of prescription drugs was extremely important back SEC. 501. DEFINITIONS. and the Senate then resume consider- In this title: ation of the trade bill postcloture. then. It was always a big priority for (1) ENDOWMENT FUND.—The term ‘‘endow- The PRESIDING OFFICER. Without senior citizens. Frankly, it is much more important ment fund’’ means a fund established by the objection, it is so ordered. Robert T. Stafford Public Policy Institute today because so many of the drugs for the purpose of generating income for the f that are available now are preventive support of authorized activities. in nature. They help keep seniors well. (2) ENDOWMENT FUND CORPUS.—The term PROGRAM They help us to hold down the cost of ‘‘endowment fund corpus’’ means an amount Mr. HAGEL. For the information of equal to the grant or grants awarded under medical care in America. A lot of these this title. all Senators, at 9:30 a.m. on Wednes- drugs today, the blood pressure medi- (3) ENDOWMENT FUND INCOME.—The term day, the Senate will immediately begin cine, the cholesterol medicine, keep ‘‘endowment fund income’’ means an amount debate in relation to the African trade seniors well and keep us from needing equal to the total value of the endowment bill. Therefore, Senators may antici- much greater sums of money to pick up fund minus the endowment fund corpus. pate votes throughout the day and into the cost of tragic illnesses. (4) INSTITUTE.—The term ‘‘institute’’ the evening. In addition, it is expected Last week, I cited as one example an means the Robert T. Stafford Public Policy that the Senate could consider the fi- important anticoagulant drug. This is Institute. nancial services modernization con- a drug that can be available to the Na- (5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Education. ference report and any necessary ap- tion’s seniors for somewhere in the vi- SEC. 502. PROGRAM AUTHORIZED. propriations bills. Therefore, votes will cinity of $1,000 a year. But if a senior (a) GRANTS.—From the funds appropriated occur each day of Senate session this gets sick, if a senior suffers a debili- under section 505, the Secretary is author- week. tating stroke, the expenses associated

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00107 Fmt 0624 Sfmt 0634 E:\CR\FM\A02NO6.106 pfrm01 PsN: S02PT1 S13726 CONGRESSIONAL RECORD — SENATE November 2, 1999 with that treatment can be more than That does not include the miscellaneous care needs. She also is sending me cop- $100,000. Just think about that—a mod- items related to drug purchases. ies of her bills in an effort to get the est investment in decent prescription She sent me this, and I will hold up Senate to see how important this issue drug coverage for the Nation’s elderly a copy of it. It is an example of the is. people, an anticoagulant drug that kind of information we are getting. She Members of the Senate, I know, care costs $1,000 a year can help save $100,000 actually sent us an enumerated copy of about older people; a number of them in much more significant medical ex- the prescription bills that she is paying have come up to me while I have been penses. at home in Medford, OR. These are not on the floor these last couple of weeks As the President knows, we have a isolated cases. I have been on the floor talking about this issue and said: You real challenge in terms of ensuring the now, this is the tenth occasion, taking are right; we need to act on it. It is stability of the Medicare program. The three or four of these cases every single hard to see what is actually holding up Part A program, the institutional pro- time. I hope seniors and families who the effort to go forward in the Senate. gram, is the one that is going to esca- are listening tonight will look at this This is the last period before the year late in cost if we can’t do more to poster and see we are urging that they is out. Certainly we can come together make prescription drug coverage a sig- send in copies of their prescription as a body and get ready to address this nificant part of outpatient benefits for drug bills to their Senators here in the issue early next year. We have a major- the Nation’s seniors. U.S. Senate in Washington, DC, be- ity in the Senate on record and voting I am very hopeful this Senate will cause I am hopeful that this can prick for a specific plan to fund this benefit. act on this issue. I believe this is the the conscience of the Senate and bring It is based on a model that uses mar- kind of issue that could be a legacy for about constructive action before this ketplace forces that ought to be ap- this session of Congress. session is over. pealing to both sides of the aisle. It is All over the Nation, seniors are tell- The Snowe-Wyden legislation is bi- a model with which Members of Con- ing us now they cannot afford their partisan. Fifty-four Members of this gress are familiar because of the Fed- prescription medicine. I am going to body have already voted for this bill. eral Employees Health Benefits Plan. read from three more letters I have re- We have a majority in the Senate on It is the basis of the Snowe-Wyden leg- cently received from folks at home. record on behalf of the funding mecha- islation. It is hard to see what is really The first is from an elderly woman in nism that we envisage in our legisla- holding up the effort to win passage of Toledo, OR. She writes: tion. We use marketplace forces. I am this important legislation. Dear Senator Wyden, I am an 81-year-old not talking about a price control re- I guess part of the problem is that widow. My only income, Social Security, al- gime or about a one-size-fits-all ap- some of the political prognosticators lows me to pay for glaucoma, angina, high proach to Federal health care; it is one say it is a difficult issue, that both blood pressure, all of which I have problems. that is very familiar to the Presiding sides are just going to fight it out on I am taking eight prescription medications Officer and to all our colleagues. It is the campaign trail, and we can just daily. My Medicare supplement insurance really a model based on the Federal wait until 2001 to actually take action doesn’t cover medication. Employees Health Benefits Plan. The on it. For just 1 month for those medicines, Snowe-Wyden legislation is called When I hear from seniors at home, she has to spend $166. On top of that, SPICE. It stands for the Senior Pre- such as the letter I raised first from she reports that every other month she scription Insurance Coverage Equity the elderly widow in Toledo who has has to spend a little over $62 for a Act. It is bipartisan. We do think it eight prescriptions and pays more than small bottle of eye drops. As she says: would help create choices, options, and $165 a month for her prescriptions, and That adds up to a lot. If I don’t use the eye alternatives for the Nation’s older peo- folks in Medford who are on a small drops, I go blind. And if I don’t use the other ple. monthly income and spending a signifi- medications, I will have a stroke, a heart at- I am very hopeful this Senate will cant portion of it on prescription tack or both. Myself, and I am sure many others, are in exactly the same boat. say we cannot afford to duck this issue. drugs, I don’t think those people can I am often asked whether we can afford afford to wait until after the 2001 elec- She, as part of her letter, encloses a to cover prescription medicine for the tion. Frankly, I think they expect us copy of her bills. Nation’s older people. I am of the view to deal with the concerns they have, Now, this isn’t the kind of thing we that we cannot afford not to cover pre- and to deal with them now. might hear from some Washington, DC, scriptions, because what we are going It is essentially one full year before think tank that is putting out reports to save as a result of these medicines of there is another election. There is plen- about whether or not this is a serious the future, and the breakthroughs that ty of time to go out and campaign and problem and whether or not seniors we are achieving in terms of preventive have the vigorous discussion of the really need this prescription drug cov- care and wellness, is going to far ex- issues in the fall of 2000. But what we erage. This is a real live case. This ceed the costs that might be incurred ought to do now is to act in a bipar- isn’t an abstract kind of matter. This as a result of debilitating illnesses that tisan way. The Snowe-Wyden legisla- is an 81-year-old widow in the State of seniors will suffer if they can’t get the tion is that kind of effort. Senator Oregon who is taking eight prescrip- medicine. As part of this effort to get SNOWE and I have said we are going to tions a day, spending from a modest bipartisan support for the Snowe- set aside some of the partisan bick- fixed income $166 a month for those Wyden legislation, I intend to keep ering that has surrounded health care eight prescriptions. Every other coming to the floor of the Senate and in this session of the Senate in years month, on top of that, she has to pay reading from these letters. past; we are going to move forward and for her eye drops. It is very clear that Before I wrap up tonight, I wish to try to make sure seniors get some help. if she doesn’t get those medicines, she bring up one other case that I thought I hope families and seniors who are is going to have the much more serious was particularly poignant. This also listening tonight will look at this post- problems—heart attacks and strokes— was a letter from an elderly person in er. We are urging that seniors send cop- that are so debilitating to older people. Medford. Her Social Security monthly ies of their prescription drug bills di- Another letter that I got in the last income was $582. Over the last few rectly to each of us in the Senate here couple of days comes from Medford, months, she spent over $700 on her pre- in Washington, DC, and help us in the OR, from seniors there who discussed scription medicine, and every 3 Senate to come together and deal with the question of prescription drug cov- months, in addition, she has to pay for the issue that is of such extraordinary erage there at the senior citizens cen- her health insurance plan, which importance to our families. ter. They said: doesn’t seem to cover many of the There are a variety of ways this issue We are glad you are launching a movement health care needs that she has. could be addressed. I think personally to gain support for prescription drug cov- Just think about that. With a month- the Snowe-Wyden legislation, because erage for seniors. They hope it goes through. Enclosed you will find a computer printout ly Social Security income of $582, over it is bipartisan and because more than of the amounts I spend on prescriptions and recent months she spent more than half of the Senate has voted for a plan drugs. More than 10 percent of our annual $700 on prescription drugs. Her private to fund it, is the way to go. But I am budget is used to defray prescription costs. policy doesn’t cover many of her health sure there are other kinds of ideas.

VerDate 29-OCT-99 03:59 Nov 03, 1999 Jkt 079060 PO 00000 Frm 00108 Fmt 0624 Sfmt 0634 E:\CR\FM\G02NO6.100 pfrm01 PsN: S02PT1 November 2, 1999 CONGRESSIONAL RECORD — SENATE S13727 When seniors send in copies of their ters I am getting from seniors at home portionally out of their own pocket prescription drug bills as we try to get in Oregon are all about is that they today than they were back when Medi- action on this issue, I hope they will cannot afford their medicine. These are care began in 1965. That should not be also let us know their ideas about leg- the people who are told by their doc- acceptable to any Member of the Sen- islative approaches, be it support for tors to take three prescriptions; they ate. Senator SNOWE, the Snowe-Wyden leg- cannot afford to do that and they end I intend to come back to the floor islation, or other kinds of approaches. up taking two prescriptions. Then they again and again and again until this But what to me is unacceptable is just cannot afford to do that; then it is one. Senate, on a bipartisan basis, looks to ducking. I do not think there is any ex- Pretty soon, sure as the night follows addressing this prescription drug cov- cuse for inertia on this issue. I think it day, they get sicker and they need in- erage. The Snowe-Wyden legislation is is time for the Senate to say we cannot stitutional care. That is, obviously, bipartisan. It uses marketplace forces. afford, as a nation, to see seniors suffer bad for their health and it is also bad We reject the kind of price control re- the way they do when they cannot get for the Nation’s fiscal health. So I in- gimes others may wish to pursue. I am prescription drug coverage. tend to keep coming back to the floor hopeful we can get action on this issue Just as important as the questions of of the Senate. because, for the millions of seniors who fairness for seniors, it seems to me, are Since my days with the Gray Pan- cannot afford their prescriptions, the the questions of economics. From an thers at home in Oregon, I felt this was Senate’s willingness to tackle this economic standpoint, the need to cover an important benefit for the Nation’s issue, and do it on a bipartisan basis some of these prescription drugs for older people. All these letters I am re- and get some relief for the seniors, will seniors looks to me like a pretty easy ceiving as a result of folks sending in help instill a sense of confidence, a call. With a modest investment, we can copies of their prescription drug bills, sense that the Senate is listening to save a whole lot of expense that comes if anything, just reaffirms to me how them, hearing them, and is willing to about when they suffer strokes and important it is that the Senate act on respond to their most significant heart attacks and the like when they this issue, and do it in a bipartisan needs. cannot get their medicine. way. I yield the floor. So I hope in the days ahead, Members Let’s show seniors, let’s show the of the Senate, in senior centers and skeptics we can come together around f medical facilities and other places this important priority. This is not a where we all go to visit, will take the trifling matter. This is, for many, ADJOURNMENT UNTIL 9:30 A.M. time to talk to some of the folks at many seniors, their big out-of-pocket TOMORROW home about the need for prescription expense. Many of them do not have pri- The PRESIDING OFFICER. The Sen- drug coverage and discuss ways we can vate health insurance that covers it. ate, under the previous order, will actually get this benefit added in this Many of them are simply falling be- stand adjourned until 9:30 a.m., session of the Senate. Too many of our tween the cracks in terms of meeting Wednesday, November 3, 1999. seniors now cannot afford their medi- their health care expenses. For many Thereupon, the Senate, at 6:49 p.m., cine. That is what these bills are all elderly people, as a result of escalating adjourned until Wednesday, November about. What these bills and these let- health costs, they are paying more pro- 3, 1999, at 9:30 a.m.

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