September 25, 2007 CONGRESSIONAL RECORD — Extensions of Remarks E1975 Mahfouz has sued or threatened to sue at possibly win under English libel law in the receives funding from wealthy Saudi busi- least 36 times against individuals in England English High Court, known to journalists the nessmen’’ one of whom was the designated who have linked bin Mahfouz to terrorist fi- ‘‘Club Med for Libel Tourists.’’ Laurence terrorist, Yassin al-Qadi who ‘‘transferred Harris of Kendall Freeman was quite candid. millions of dollars to nancing and activities. ‘‘Our client [Shaykh] Mahfouz chose to com- through charities and trusts like the ‘‘’’ reaches back into history, plain to Cambridge University Press about Muwafaq Foundation.’’ It appears very particularly into where much of the ac- the book because the book was published in strange that the founder of his personal tivities of fundamentalist Islamist groups found this jurisdiction by them’’ where he had pre- charity and its major donor had no idea their origins, and traces them to the modern- viously threatened to ‘‘sue some 36 U.S. and where or whom or for what purpose his gen- day struggle against extremist forces around U.K. publishers and authors’’ and in which erosity was being used. the world. We cannot understand the current Shaykh Mahfouz had previously won three Although the reaction to the settlement by CUP has been regarded by some, like Pro- war on terror, which extends far beyond the suits for the same charges of his alleged fi- nancing of terrorism. Even Justice Eady’s fessor Deborah Lipstadt at Emory Univer- terrible events of September 11, without ex- pious pronouncements about ‘‘the impor- sity, as a ‘‘frightening development’’ where- amining the chronology and details of this tance of freedom of speech’’ were of little by the Saudis ‘‘systematically, case by case, issue. relevance before the weight, or lack thereof, book by book’’ are shutting down public dis- I have enclosed the author’s response to in English libel law he rigorously enforced. course on terrorism and intimidating pub- the lawsuit, and encourage our colleagues to This was the first time that Shaykh lishers from accepting manuscripts critical obtain and read this important book. Mahfouz had brought suit only against the of the Saudis, there still remains the free ex- publisher that did not include the authors, change of ideas, opinions, and written text in SAUDI BILLIONAIRE VS. CAMBRIDGE for ‘‘our client [Shaykh Mahfouz] took the the world of the internet protected by the UNIVERSITY PRESS: NO CONTEST view that they [CUP] were likely to deal First Amendment. Ironically, the eleven On 3 April 2007 Kevin Taylor, Intellectual with his complaint sensibly and quickly, points of the Mahfouz suit against CUP Property Manager for the Cambridge Univer- which they did,’’ rather than include the au- amount to little more than a large footnote, sity Press (CUP), contacted Millard Burr and thors who would not. As American authors a trivial fraction of the wealth of informa- myself that the solicitors for Shaykh Khalid residing in the U.S., we were ‘‘out of jurisdic- tion in ‘‘Alms for Jihad’’ that cannot be bin Mahfouz, Kendall Freeman, had informed tion’’ and under the protection of the U.S. found elsewhere. The Shaykh can burn the CUP of eleven ‘‘allegations of ’’ in Courts, specifically the unanimous ruling by books in Britain, but he cannot prevent the our book Alms for Jihad: Charities and Ter- the Second U.S. Circuit Court of Appeals in recovery of the copyright by the authors nor rorism in the Islamic World and requested a June 2007 that Dr. Rachel Ehrenfeld could their search for a U.S. publisher to reprint a response. On 20 April CUP received our sev- challenge in a U.S. Court the suit previously new edition of ‘‘Alms for Jihad’’ for those enteen page ‘‘robust defence’’, but it soon be- won against her by Shaykh Mahfouz in Jus- who have been seeking a copy in the global came apparent that CUP had decided not to tice Eady’s High Court in thereby es- market place. defend Alms for Jihad given ‘‘knowledge of tablishing a defining precedent in U.S. juris- claims from previous litigation’’ and that prudence. Dr. Ehrenfeld is the director of the f ‘‘the top-line allegations of defamation made American Center for Democracy in New PERSONAL EXPLANATION against us by bin Mahfouz are sustainable York whose book, ‘‘Funding Evil: how ter- and cannot be successfully defended . . . cer- rorism is financed—and how to stop it,’’ pub- tainly not in the English courts, which is lished by Bonus Books of Chicago in 2003, de- HON. WALLY HERGER where the current action arises.’’ Of the elev- scribes how Shaykh Mahfouz helped finance OF CALIFORNIA en points of alleged defamation ‘‘we [CUP] al-Qa’ida, Hamas, and other terrorist organi- IN THE HOUSE OF REPRESENTATIVES could defend ourselves against some of his zations in greater detail than ‘‘Alms for Tuesday, September 25, 2007 individual allegations . . . which, as you say Jihad.’’ Although her book was not sold in could hardly be deemed defamatory on its Britain, Shaykh Mahfouz secured British ju- Mr. HERGER. Madam Speaker, I was un- own,’’ but on pp. 51–52 where you use the risdiction by demonstrating that ‘‘Funding able to vote on four bills brought up under phrase ‘‘ ‘The twenty supporters of Al Qaeda’ Evil’’ could be purchased or read on the Suspension of the Rules on Monday, Sep- followed by the Golden Chain references . . . internet by British citizens. When she re- tember 24, 2007 because of an illness. is defamatory of him under English law.’’ fused to defend the case in the London High Had I been present, I would have voted The Golden Chain was a list of twenty Court, Justice Eady declared for the plaintiff ‘‘yea’’ on H. Con. Res. 193, a resolution rec- and ordered Dr. Ehrenfeld to pay $225,000 wealthy Saudi donors to al-Qa’ida which in- ognizing all hunters across the United States cluded the name ‘‘Mahfouz’’ on a computer damages. She then chose to confront the disk seized during a raid by the Bosnian po- Shaykh and seek redress in the U.S. Court for their continued commitment to safety; lice and U.S. security agents of the Sarajevo system. ‘‘yea’’ on H. Res. 668, a resolution recognizing office of the Saudi charity, the Benevolent Millard Burr and I had adamantly refused the 50th anniversary of the September 25, International Foundation (Bosanska Idealna to be a party to the humiliating capitulation 1957, desegregation of Little Rock Central Futura, BIF). by CUP and were not about to renounce what High School by the Little Rock Nine; ‘‘yea’’ on On 9 May 2007 CUP agreed to virtually all we had written. ‘‘Alms for Jihad’’ had been H.R. 1199, the Drug Endangered Children Act of the Shaykh’s demands to stop sale of the meticulously researched, our interpretations of 2007; and ‘‘yea’’ on H. Res. 340, a resolu- book, destroy all ‘‘existing copies,’’ prepare a judicious, our conclusions made in good faith letter of apology, and make a ‘‘payment to on the available evidence. It is a very de- tion expressing the sense of the House of charity’’ for damages and contribute to legal tailed analysis of the global reach of Islamic, Representatives of the importance of providing costs. After further negotiations the press mostly Saudi, charities to support the spread a voice for the many victims (and families of also agreed, on 20 June 2007, to request 280 li- of fundamental Islam and the Islamist state victims) involved in missing persons cases braries around the world to withdraw the by any means necessary. When writing and unidentified human remains cases. book or insert an erratum slip. During these ‘‘Alms for Jihad’’ we identified specific per- f three months of negotiations Millard and I sons, methods, money, how it was laundered, had naively assumed that, as authors, we and for what purpose substantiated by over CONGRATULATING FRENCH LICK, were automatically a party to any settle- 1,000 references. I had previously warned the INDIANA ON ITS SESQUICENTEN- ment but were now informed we ‘‘are out of editor at CUP, Marigold Acland, that some NIAL jurisdiction’’ so that CUP had to ask of this material could prove contentious, and ‘‘whether of not they [the authors] wish to in March 2005 legal advisers for CUP spent a join in any settlement with your client month vetting the book before going into HON. BARON P. HILL [Mahfouz].’’ On 30 July 2007 Mr. Justice Eady production and finally its publication in OF INDIANA in the London High Court accepted the ab- March 2006. We were careful when writing IN THE HOUSE OF REPRESENTATIVES ject surrender of CUP which promptly pulped ‘‘Alms for Jihad’’ not to state explicitly that Tuesday, September 25, 2007 2,340 existing copies of Alms for Jihad, sent Shaykh Mahfouz was funding terrorism but letters to the relevant libraries to do the the overwhelming real and circumstantial Mr. HILL. Madam Speaker, 2007 marks the same or insert an errata sheet, issued a pub- evidence presented implicitly could lead the 150th anniversary of the town of French Lick, lic apology, and paid costs and damages. reader to no other conclusion. Court records Indiana. Many of my colleagues in Congress The crux of this sordid and sorry saga lies in the case of U.S. vs. Enaam Arnaout, Di- may recognize the town’s name as the birth- firmly in the existing English libel law rector of the Benevolent International Foun- place of one of basketball’s finest, Larry Bird. which is very narrow and restrictive com- dation and close associate of Osama bin But, those of us who have had the pleasure of pared to its counterpart in the United States Laden, accepted as evidence the ‘‘Golden with a long history and precedent of ‘‘good Chain’’ which the British High Court later spending time in French Lick know it for much faith’’ protected by the First Amendment, refused as evidentiary. The Mawafaq more. I am looking forward to celebrating absent in English jurisprudence. In effect, (Blessed Relief) Foundation of Shaykh French Lick’s Sesquicentennial with its resi- CUP was not prepared to embark on a long Mahfouz and its principal donor was declared dents this coming weekend when the festivi- and very expensive litigation it could not by the U.S. Treasury ‘‘an al-Qaida front that ties commence on Friday, September 28,

VerDate Aug 31 2005 05:20 Sep 26, 2007 Jkt 059060 PO 00000 Frm 00009 Fmt 0626 Sfmt 9920 E:\CR\FM\A25SE8.034 E25SEPT1 bajohnson on PROD1PC71 with REMARKS E1976 CONGRESSIONAL RECORD — Extensions of Remarks September 25, 2007 2007. The celebration will feature an array of votes on September 24, 2007. I would have is that Ford paid $28 million to its new CEO, events, such as the Queen’s Ball, Historic voted as follows: Rollcall No. 891: ‘‘yea’’; roll- Alan Mulally, in his first 4 months on the job. Home Tours, Commemorative Post Mark, call No. 892: ‘‘yea’’; rollcall No. 893: ‘‘yea’’; This disclosure comes as companies like Pumpkin Festival Parade, Carnival Rides, His- and rollcall No. 894: ‘‘yea’’. Ford, General Motors, and DaimlerChrysler toric Train Rides, Time Capsule Dedication, f are in the midst of negotiations with unions to live musical performances, art show, and golf obtain concessions and labor cost savings tournament. PROTECTING EMPLOYEES AND RE- when their current contracts end in this month. French Lick has a long and distinguished TIREES IN BUSINESS BANK- A factor that will likely be present at the bar- history. In the 1800s, as pioneers began set- RUPTCIES ACT OF 2007 gaining table is the threat of a potential Chap- tling the Indiana Territory, one of the few HON. JOHN CONYERS, JR. ter 11 filing. As many of you know, the United roads connecting Louisville and Vincennes OF MICHIGAN Auto Workers yesterday announced a strike at was the buffalo trail through current day IN THE HOUSE OF REPRESENTATIVES General Motors principally because GM wants French Lick. Several pioneers established ho- to shed more than $50 billion in future health tels and other business trades along the route, Tuesday, September 25, 2007 care benefits for retirees. leading to the founding of French Lick in 1857. Mr. CONYERS. Madam Speaker, the ‘‘Pro- We need to restore the level playing field Some of these early residents included the tecting Employees and Retirees in Business that the drafters of Chapter 11 originally envi- likes of Dr. William Bowles, who constructed Bankruptcies Act of 2007,’’ addresses the vast sioned and to ensure that workers and retirees the first health resort sometime between 1840 inequities in current bankruptcy law with re- receive fair treatment when their company is and 1845; Charles Edward Ballard, the town’s spect to how American workers and retirees in bankruptcy. It is time that we include the in- most famous entrepreneur known for his suc- are treated, an area long-neglected by Con- terests of working families in the bankruptcy cessful management of saloons and casino gress. law and consider how we can add a measure operations; and Ferdinand and Henry Cross, The rights of workers and retirees have of fairness to a playing field that is overwhelm- brothers whose artistic talents enriched the greatly eroded over the past two decades, ingly tilted against workers. lives on travels to the town. Henry’s work particularly in the context of Chapter 11. Let My bill addresses these problems by: would later be used for the sketch of the buf- me just cite three reasons. Increasing the amount by which unpaid falo on the United States nickel. First, it is no secret that certain districts in wage and employee benefit claims would be The tourist demand for French Lick’s mag- our Nation interpret the law to favor the reor- entitled to payment priority; ical, health-rejuvenating water led to the con- ganization of a business over all other prior- Creating a more level playing field for em- struction and remodeling of the French Lick ities, including job preservation, salary protec- ployees in Chapter 11 cases where employers Hotel. One of the hotel’s most famous owners tions, and other benefits. Part of the problem want to terminate jobs, reduce wages, reject was a resourceful entrepreneur named Thom- is that the law is simply not clear, leading to collective bargaining agreements, and termi- as Taggart. Taggart, who served in several a split of authority among the circuits. nate medical benefits for retirees; elected positions including as Mayor of Indian- This is particularly true with respect to the Prohibiting companies in bankruptcy from apolis and as a U.S. Senator, also lead the standards by which collective bargaining paying lavish performance bonuses and incen- State Democratic Party beginning in 1892 and agreements can be rejected and retiree bene- tive compensation to key management; and the National Democratic Party in 1905. After fits can be modified in Chapter 11. Busi- Ensuring that the bankruptcy judges have fire destroyed part of the original hotel, it was nesses, as a result, take advantage of these clear statutory guidance that the purpose of Taggart that expanded and rebuilt the facility venue options and file their Chapter 11 cases Chapter 11 is—to the greatest extent pos- with its trademark yellow brick, six story front. in employer-friendly districts. This was one of sible—maximize assets so as to preserve Thousand of travelers flocked to the new hotel the main reasons that Delphi, a Michigan- jobs. as a resort destination prior to traveling to headquartered company, filed for bankruptcy I will urge prompt consideration of this legis- other destinations or attending popular events in New York. lation by the Subcommittee on Commercial such as the Kentucky Derby in nearby Louis- Second, it is clear that at least some busi- and Administrative Law and further pro- ville, KY. nesses use Chapter 11 to bust unions or to at ceedings by the House Judiciary Committee. The mineral springs of the French Lick area least give themselves unfair leverage in its ne- f brought many travelers to the region, but it gotiations with unions. According to a recently was the gambling that established the Spring released GAO analysis that I requested nearly EQUITY FOR OUR NATION’S SELF- Valley as the leisure destination during the 2 years ago, 30 percent of companies in the EMPLOYED ACT OF 2007 first half of the twentieth century. Although study sought to reject their collective bar- seen as a ‘‘victimless crime’’ to many, gam- gaining agreements in bankruptcy. Nearly as HON. WALLY HERGER bling was illegal and in the late 1940s raids on many companies took advantage of special OF CALIFORNIA several casinos ended the practice in the provisions in the Bankruptcy Code by employ- IN THE HOUSE OF REPRESENTATIVES area. The resulting loss of tourism to the area ers that can modify retiree benefits. Tuesday, September 25, 2007 created an economic hardship in the region Let me be specific here. What we are talk- and the French Lick Hotel passed among sev- ing about is terminating retiree health care Mr. HERGER. Madam Speaker, with nearly eral owners. It was in the late 1990s that resi- benefits, medical benefits, prescription drug 47 million uninsured in America, rising health dents of the town and surrounding region, benefits, disability benefits, and death benefits, care costs, and a federal health entitlement aided by Historical Preservationist such as among other protections. system that is simply unsustainable in the long William Cook, began restoring the Grand Ho- And, remember that these benefits were run, America is truly on the verge of a health tels of the area. Coupled with the legalization bargained for in good faith by hardworking crisis. Yet despite the looming fiscal insol- of gaming in 2003, the French Lick Springs Americans who gave their all to their employ- vency of Medicare and other challenges facing Resort Hotel and town has returned to its ers and now are in retirement. This is a trav- U.S. health care, Congress is preparing now formed grandeur as a resort and leisure des- esty. to approve one of the largest expansions of tination. Third, as a result of Chapter 11’s inequitable government health care in decades. Mr. Congratulations French Lick on this histor- playing field, employers are able to extract Speaker, we must change course in today’s ical occasion. All Hoosiers look forward to major concessions from workers and retirees, debate, and address the root problems facing seeing how this unique and wonderful town while lining their own pockets. As we learned our health system. And true change can be develops for decades to come. at a hearing held earlier this year by the Sub- achieved only through working together on a f committee on Commercial and Administrative bipartisan level. PERSONAL EXPLANATION Law, executives of Chapter 11 debtors often It is for this very reason that I am pleased receive extravagant multi-million dollar bo- to join with my colleague from the other side HON. LOIS CAPPS nuses and stock options, while regular work- of the aisle, Representative RON KIND of Wis- ers are forced to accept drastic pay cuts or consin, in introducing truly collaborative, bipar- OF CALIFORNIA even job losses and while retirees lose hard- tisan legislation that would help expand health IN THE HOUSE OF REPRESENTATIVES won pensions and health benefits. coverage to millions of currently uninsured Tuesday, September 25, 2007 As many of you know, the Ford Motor Com- American taxpayers. Our legislation, the ‘‘Eq- Mrs. CAPPS. Madam Speaker, I was not pany reported a record $12.7 billion loss for uity for Our Nation’s Self-Employed Act of able to be present for the following rollcall last year. But what many of you may not know 2007,’’ would correct an inequity that currently

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