S 522 CONGRESSIONAL RECORD — SENATE January 5, 1995 information he’s rarely asked about. ‘‘Re- national gambling conference that draws THE BOTTOM LINE porters are much less interested in exploring from industry and academia.) In general, gambling needs to be covered my ties to the industry than they are in get- Lastly, despite regular denials from gam- like other economic development proposals— ting me to give the secret as to why gam- bling promoters, there is abundant evidence glitz and hype notwithstanding. Journalists bling is bad.’’ Christiansen says. His willing- that legalized gambling, especially state lot- should not forget that they may be the only ness to be critical of the spread of legalized teries, is regressive, with poorer citizens ones able to cast a skeptical eye on plans to gambling, it should be noted, does not con- gambling a disproportionate share of their expand legalized gambling in their commu- flict with the interests of some large casino income. Information on this often-scanted nity. companies that stand to lose revenue if ri- subject has come from the New Jersey Lot- ‘‘Remember, this is an industry that’s in vals move in on their turf. tery Commission, The Heartland Institute in the business of selling illusion,’’ says David Then there’s I. Nelson Rose, a professor at Chicago, and Duke University, among oth- Johnston. ‘‘And it begins long before the ca- the Whittier Law School in California, whose ers. sino ever opens.’’∑ resume calls him the ‘‘nation’s leading au- thority on gambling and the law.’’ But no- LOOKING AT THE SOCIAL COSTS f where in his nine-page vita does Rose men- Examining the social cost of gambling can THE PEACE POWERS ACT OF 1995 tion that for the past three years he has been be a fertile area for an enterprising journal- a partner in a plan to develop a string of In- ist. ‘‘There’s absolutely been an explosion in ∑ Mr. NICKLES. Mr. President, I am dian-owned casinos in southern California. the number of compulsive gamblers in Min- pleased to be a cosponsor of S. 5, the ‘‘I have no trouble talking about it.’’ says nesota’’ since casinos began opening on Na- Peace Powers Act of 1995, introduced Rose when asked about his business ven- tive American reservations across the state, by Majority Leader DOLE. This is a tures, but he doesn’t always volunteer the says Jim Kelly, assistant city editor of the much-needed piece of legislation, in information to reporters. (In the Globe series, Star Tribune in the Twin Cities. The paper Rose was described as a professor ‘‘who stud- has attempted to cover this issue, a notable that it not only unties the President’s ies gambling law.’’ The Quad-City Times example being a page-one November 12, 1992, hands in those instances where he called him ‘‘one of the nation’s top authori- piece that examined increases in crime relat- needs to act to ensure American inter- ties on legalized gambling.’’) ed to compulsive gambling. ests, it also enacts important reforms It’s worth noting that Christiansen and Howard Shaffer, director of the Zinberg in the manner in which the United Rose are still good sources for gambling sto- Center for Addiction Studies at Harvard Uni- States participates in U.N. operations. ries, says David Johnston, ‘‘but you need to versity, says that between 3.5 and 5 percent First, S. 5 repeals the unworkable— put them in the universe.’’ of those adults exposed to gambling can be and probably unconstitutional—War Almost no source is safe, it seems. A re- expected to develop into pathological gam- porter calling the National Council on Prob- blers. Even more disturbing, the percentage Powers Resolution. This is long over- lem Gambling in New York City, for exam- is higher (6 to 8.5 percent) for college and due. I, like many of my colleagues, ple, might expect to get an anti-gambling high school students, according to Shaffer’s have always believed that the Framers perspective, or at least a view that is cau- most recent research. ‘‘It’s like crack was to of the Constitution always intended tious about the spread of legalized gambling. cocaine. It’s becoming too easy to gamble,’’ that the President should be able to ‘‘That’s not what my board wants me to do,’’ says Shaffer. act with dispatch to protect American says Jean Falzon, the group’s executive di- New forms of legalized gambling may also interests in his capacity of Commander rector. Instead, the council, whose board in- contribute to an increase in crime, or at in Chief of the U.S. Armed Forces. cludes several gambling industry executives, least increases in the cost of ensuring public focuses on raising money, often from the in- safety. Meanwhile, there’s the likelihood of While Congress retains the power of dustry, for research about, and the education more white-collar crime when gamblers who the purse, and the continuing right to of, compulsive gamblers. lose too much in the casinos try to make up cut off funds at will, there is no clear What’s a reporter to do?’’ You flat out ask their losses by stealing from employers or right for Congress to preemptively sub- them’’ if they make money off the industry, institutions. ject the President to a drop dead date says The Wall Street Journal’s Yoshihashi. HOW WILL IT BE REGULATED? in the conduct of military operations. (For the record, two of the experts quoted in This bill does retain the consultation ‘‘If you’re going to have gambling as public this story, Goodman and Abt, say they take and reporting provisions of the War no money from the gambling industry.) policy, you have to have regulation,’’ says Yoshihashi. The Wall Street Journal re- Powers Resolution, which have not EVALUATING THE ECONOMIC BENEFITS porter suggests that communities consider been controversial and with which all A casino proposal will offer enough num- imposing a waiting period between the time administrations have complied, in the bers to confuse even an experienced business someone leaves the industry and the time spirit of cooperation between the exec- reporter. And they’re all soft. Nevertheless, the person can serve in a regulatory capac- utive and legislative branches. exploring the economic side of casino devel- ity, and vice versa. A major provision is section 5 of the opment can offer some of the best stories David Johnston of The Philadelphia In- bill, which amends the United Nations about the issue. quirer adds that reporters should find out, ‘‘Many real economic issues are not being for example, whether a tax agent will be re- Participation Act to prohibit the Presi- discussed by promoters or local politicians’’ quired to be on hand when money is counted, dent from placing any element of the who are eager to get casinos open and gener- and how much casino operators will have to U.S. Armed Forces under the command ating money, says Yoshihashi. One of these disclose about their business relationships or operational control of any foreign issues involves how many of a projected casi- with those in the community. He also sug- national in any UN peacekeeping oper- no’s anticipated customers will come from gests looking into whether the casino will ation. This is a matter that commands outside the immediate area. If most of the permit credit gambling, which he says cre- strong support among the American gamblers are local, the dollars spent at the ates a host of problems, and whether there public, who do not want to see our casino represent money not being spent on will be stiff penalties for casinos that permit other things in the local economy, inevitably underage patrons to gamble. service personnel placed willy-nilly hurting some area businesses. Then, too, Regulation is a particularly big issue at under the control of non-Americans, there’s the issue of jobs, which are usually casinos on Indian reservations because their exposed to dangers in operations that touted as skilled and high-paying. In reality, sovereign-nation status has put them into may have little if any relation to the skills are usually pretty minimal, as is something of a regulatory limbo. A recent American interests. I am pleased to the pay, which generally anticipates gener- article in Gaming & Wagering Business, a point out that this provision is very ous tips. There’s also a history of racial dis- trade magazine, raised allegations of misuse similar to an amendment that I at- crimination and sexual harassment in the of funds, ties to organized crime, and sexual tempted—unsuccessfully, at that casino industry. harassment at one reservation-based casino Another issue centers around the likeli- in Minnesota. time—to add to the Department of De- hood that a casino will help a community Chris Ison, one of five reporters at the Star fense appropriations bill in 1993. How- turn its luck around. ‘‘There can be a lot of Tribune who cover gambling in an unusual ever, as President Clinton has shown false expectations about long-term economic team approach, says he is aware of the alle- himself more and more willing to dele- development,’’ says William Eadington, di- gations, but has yet to explore them in gate his constitutional power to inter- rector of the Institute for the Study of Gam- depth. Ison has uncovered and reported on national bureaucrats at the United Na- bling and Commercial Gaming at the Univer- other forms of wrongdoing, some of which in- tions, the wisdom of this prohibition sity of Nevada at Reno. ‘‘It’s all driven by a volve the regulators themselves. Last year, has become more and more apparent. I myopic perspective that all that matters is for example, he co-wrote a piece revealing economic, which is bound to be disappoint- that the area director of the federal Bureau look forward to its becoming law in the ing.’’ (Eadington, by the way, makes money of Indian Affairs was receiving cash vouchers very near future. off the industry, running training sessions with which to gamble when he made regu- Finally, S. 5 includes provisions to for casino managers and sponsoring an inter- latory visits to a casino. reform the way U.N. peacekeeping is January 5, 1995 CONGRESSIONAL RECORD — SENATE S 523 paid for. With passage of this legisla- the annual United States/South Korean I know that some in this chamber tion, costs incurred by the Defense De- military exercise ‘‘Team Spirit.’’ And have serious misgivings about our deal partment in U.N. peacekeeping oper- North Korea’s shooting down of a Unit- with North Korea. I understand that; ations will be credited to the United ed States helicopter that accidentally given Pyongyang’s record, it would be States against our assessments to the strayed north of the snow-obscured a mistake to treat that government’s United Nations. No more would the border-line—and then holding the sur- ‘‘commitments’’ with anything less United States be, in effect, stuck with viving pilot prisoner—has not diluted than a very healthy skepticism. But I the bill twice: the first time, when the this Administration’s eagerness to deal believe that the more one looks at the Defense Department expends resources with North Korea. Agreed Framework with North Korea to support a U.N. mission, and the sec- But even more astounding is that de- the more one sees that the agreement ond time when the U.N. bills us for our spite months of North Korean intran- does not depend on trusting share of the same mission. Also, the sigence over allowing international nu- Pyongyang. Rather, the United States Peace Powers Act requires that ad- clear inspections, the Clinton adminis- has crafted an agreement that gives us vance notice of funding sources for tration agreed to provide these valu- and our partners, South Korea and peacekeeping operations be identified able assets without ensuring inter- Japan, new levers over North Korea. If before the U.N. Security Council votes national inspections. Only after about the North Koreans don’t live up to to establish, extend, or expand U.N. 5 years into the agreement’s implemen- their commitments, they lose out, and peacekeeping operations. This would tation, and close to the completion of prevent ‘‘deficit voting’’ by the Clinton we’re the ones who decide if those obli- the first of two light water reactors, is gations are being met. Administration—which has treated North Korea required to come into full peacekeeping, in effect, as a sort of When I was in Seoul our talented and compliance with the 1968 Non-Pro- hard-working Ambassador there, ‘‘international entitlement program,’’ liferation Treaty, which prohibits the James T. Laney, gave me a memo that where we commit to an operation and diversion of nuclear materials from spells out very cogently just how much only worry about paying for it after- peaceful purposes to weapons use and we and the South Koreans stand to ward. obligates signatories to accept ‘‘safe- gain from the Agreed Framework with The Peace Powers Act is the start of guards’’ to monitor and verify compli- North Korea. The memo does have a what I hope will be a major reexamina- ance. And it is only at this point that tion of U.S. priorities in the national the special inspections of the two nu- shortcoming: like many documents security area. In particular, the Clin- clear waste sites will be allowed. produced within the U.S. Government, ton Administration, in the view of To give another example, I applaud it is full of acronyms. Let me spell many of us, has not approached its re- the proposal of my colleague, Senator some of those out. The DPRK is the sponsibilities in this area with suffi- MCCONNELL, the incoming Chairman of Democratic People’s Republic of cient seriousness. For example, we the Subcommittee on Foreign Oper- Korea—North Korea—and the ROK is have seen the way in which the Clinton ations, to take a new look at our for- the Republic of Korea—South Korea. Administration has completely mis- eign aid to Russia and other states of The ROKG is the Republic of Korea handled the nuclear crisis involving the former Soviet Union in light of Government. An LWR is a Light Water North Korea. In fact, while the Clinton some of the things that are happening Reactor, the NPT is the Nuclear Non- Administration claims that preventing there. Senator MCCONNELL has called proliferation Treaty, and the IAEA is the proliferation of weapons of mass for cutting aid to Russia upon evidence the International Atomic Energy Agen- destruction is a top priority, its ac- that Moscow is directing or supporting cy. tions, as evidenced by the October 1994 the violation of another nation’s sov- Ambassador Laney also gave me a nuclear agreement with North Korea ereignty. In addition, I am sure my col- very interesting statement describing may do more to promote nuclear pro- leagues feel as I do about the disturb- the evolving South Korean reaction to liferation. ing television pictures we are seeing the Agreed Framework. No country The agreed framework commits the from Chechnya [chech-NYAH], and the looks more warily at North Korea than United States to provide North Korea actions of Russian forces there. While South Korea does. So it’s worth noting with immediate economic, political Chechnya is legally part of Russia and that, as details about the agreement and security benefits in return for not a neighboring country, I am con- Pyongyang freezing its nuclear com- became known, the Seoul stock market cerned what these actions may indicate plex. went up more than 20 percent. That’s What signal does this send to other about the direction of the Russian Gov- not the reaction of a business commu- would-be proliferators? That building a ernment and its commitment to demo- nity that thinks its country has been nuclear weapons complex, in violation cratic reform. left more vulnerable. of an international accord—namely, So, as I have said, Mr. President, I respectfully request that Ambas- the 1968 Nonproliferation Treaty—is there are many issues for us to take a sador Laney’s memo, ‘‘What the U.S.- the best way to get economic aid, polit- look at in the 104th Congress. The DPRK Agreed Framework Means for ical concessions, and national security Peace Powers Act is an excellent begin- Korea,’’ and his statement, ‘‘Seoul’s assurances from the United States. ning. I hope it will rapidly be enacted.∑ Second Thoughts,’’ be inserted into the Here is what Iraqi foreign minister Mo- f RECORD. hammed Saeed Sahhaf [sah-YEED sah- The material follows: UNITED STATES-NORTH KOREAN HAHF] had to say about the United AGREED FRAMEWORK: WHAT IT WHAT THE U.S.-DPRK AGREED FRAMEWORK States-North Korean deal: ‘‘What does MEANS FOR US; WHAT IT MEANS MEANS FOR KOREA North Korea get for its refusal?’’, [re- FOR SEOUL South Koreans are nobody’s fools when it ferring to international inspections of Mr. SIMON. Mr. President, last comes to trusting North Korea. They don’t. two sites suspected of holding nuclear ∑ They are watching like hawks for the first weapons-related materials] ‘‘They get a month my colleague Senator MURKOW- sign of DPRK backsliding or nonperformance $4 billion light-water reactor, get a SKI and I made a factfinding trip to regarding the Geneva Agreed Framework. couple billion dollars in addition, plus several Asian countries, including We drew heavily on the ROK’s experience unlimited oil deliveries. What do we North and South Korea. In both and advice to design a Framework that get? We get nothing.’’ [As related to Pyongyang and Seoul we naturally fo- avoids the mistakes of past agreements with the Washington Post by Rolf Ekeus cused much of our attention on the the DPRK. The Framework was designed to [EH-kyoos], director of the U.N. Spe- Agreed Framework recently concluded compel the DPRK to take measurable steps cial Commission on Iraq.] between the United States and North in compliance before getting significant ben- Under the agreed framework the Korea. According to that document, efits. Determined not to be cut out of the game, United States will: Immediately pro- North Korea is to dismantle its nuclear the South Koreans are trying to promote vide North Korea with close to $4.7 mil- weapons production capability in ex- inter-Korean dialogue. Equally determined lion worth of heavy oil; establish liai- change for assistance—primarily from to hobble ROK influence (and perhaps unwill- son offices with North Korea; begin re- South Korea and Japan—in reconfig- ing to talk before the succession is com- laxing trade restrictions; and cancel uring its energy sector. pleted in Pyongyang), the North Koreans are