I ask unanimous consent that the order for the quorum call be rescinded. Madam President, may I inquire what is the business before the Senate. I thank the Chair. Madam President, I have an amendment…
I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, may I inquire what is the business before the Senate.
I thank the Chair.
Madam President, I have an amendment I have filed with the floor leadership on this bill dealing with Iran sanctions. It is called the Comprehensive Iran Sanctions, Accountability and Divestment Act for 2008. I want to share some thoughts about this proposal with my colleagues. I am fully cognizant that our friend from Michigan, Senator Levin, the manager of this bill, has a lot of amendments with which he is dealing. I don't know whether we will have a chance to actually vote on this bill, but I want to spend a few minutes talking about the importance of this amendment and its value.
Obviously, there is a lot going on today with the financial crisis in the country. As chairman of the Banking Committee, I will have more to say about that tomorrow. I have been having conversations with fellow committee members among others.
Today I want to talk about this issue specifically and then address an issue as well dealing with the devastation of Hurricanes Gustav and Ike and Tropical Storms Fay and Hanna that ripped through the Caribbean.
We are considering, of course, the Defense authorization bill. This proposal, adopted and developed by the Committee on Banking, Housing, and Urban Affairs in conjunction with my Republican colleague and friend, Richard Shelby of Alabama, former chairman of the committee, would impose tough new sanctions on the Government of Iran, to authorize investors to divest from companies active in Iran's energy sector and to combat the proliferation of black market weapons networks overseas.
I am delighted to have my colleague, Senator Shelby, as a sponsor of the amendment. In my view, we need a comprehensive strategy on Iran that builds our leverage within the context of a major new diplomatic push for meaningful negotiations.
Let me be clear. Sanctions against the Government of Iran are not an end unto themselves but, rather, one means of driving a resolution of the problem of Iran's apparent nuclear ambitions. The Europeans' recent decision to impose additional financial sanctions on Iran is a very positive development that exerts further pressure to that end. The approach embodied in the bill I am talking about this afternoon is targeted and strategic, maximizing the economic leverage of the United States, our partners and allies in Europe and elsewhere, and international investors, while avoiding the risk of a more indiscriminate approach.
The Banking Committee exercises jurisdiction over virtually all aspects of U.S. financial and economic sanctions policy toward Iran, which can be summarized in three categories: No. 1, the U.S. trade and investment ban administered by the Treasury Department's Office of Foreign Assets Control; No. 2, sanctions against foreign companies that invest substantially in the energy sector, proceeds from which support Iran's proliferation or terrorism-related activities; and, No. 3, targeted financial measures, including freezing assets of individuals involved in that proliferation.
Last year, the committee conducted a hearing on the effectiveness of Iran sanctions. Working with the administration, the Banking Committee acted swiftly to strengthen the U.S. trade/investment ban, and ultimately we saw enactment in October of the International Emergency Economic Powers Enhancement Act. This new law holds violators of U.S. sanctions law accountable, adding, I might add, jail time and severe fines against those investing in Iran or other state sponsors of terror.
Also, last year, shortly after the House of Representatives acted on its version of Iran-related legislation, I then asked the majority leader, Senator Harry Reid, to expedite Senate consideration of various Iran-related bills. The leader, as you might expect, agreed and moved quickly. But we were unable to clear them completely on the other side of this Chamber, which I regret.
The Government Accountability Office then issued a report last December raising questions about whether our current sanctions regime against Iran furthers U.S. policy objectives and how they might be made more effective. Among other things, that report concluded that the ongoing illegal transshipment of sensitive dual-use technologies from often unwitting U.S. and other Western suppliers to countries such as Iran--sometimes through three or four levels of suppliers--is one very effective way around current U.S. sanctions.
In recent months, the Banking Committee refined and combined in one package various pieces of the Iran-related legislation, accommodating concerns of Members on both sides of the political aisle and those of the Bush administration. We now have a very streamlined bill that I hope will enjoy broad bipartisan support if I am given the opportunity to offer it on the Defense authorization bill. This streamlined version of this sanctions bill was reported out of the Banking Committee in July by a strong bipartisan vote of 19 to 2.
The missile tests that Iran conducted in July were provocative, and its persistent refusal to abide by United Nations Security Council demands--despite a host of sanctions already in place--is very troubling. Iran's behavior with respect to weapons proliferation, support for terrorism, destabilization of its neighbors, and threats against our allies and interests demands a very serious response.
We only have a few weeks remaining in this legislative session. We will not return to actually legislate until late January of next year. I would hope we would find time, whether on this bill or some other vehicle, to enact, as I am confident we can, with a strong bipartisan vote, this Iran sanctions idea. This bill is one very important part of that response.
I again thank Senator Shelby, my colleague, as well as other committee members, Republicans and Democrats, who worked together to pass this legislation. Senator Evan Bayh of Indiana, Senator Brownback of Kansas, Senators Smith, Durbin, Lautenberg, and others have worked very hard on the Iran issues and deserve a great deal of credit for the product we have been able to put together. I thank, as well, Senator Obama for his critical work on this Iran divestment legislation which, again, was adopted in a strong bipartisan fashion by the committee as part of its integrated bill.
Current U.N. Security Council sanctions against the Government of Iran have been extremely important, but I think we have an obligation to take measures, consistent with the objectives of the U.N. sanctions, to increase the leverage of the United States and our allies in a much more aggressive, diplomatic, and political initiative to bring Iran back to the table and ultimately persuade its Government to change its behavior.
Let me describe briefly the sanctions provisions.
First, the bill expands the definition of ``person'' under the Iran Sanctions Act to include financial institutions, underwriters, guarantors, and other business entities and extends the applicability of sanctions to oil and gas pipelines and tankers. It imposes a broad ban on imports directly from Iran to the United States and exports from the United States to Iran of those few items still able to be shipped while exempting food and medicines to Iran, certain informational materials, and aids to navigation designed for safe operation of commercial aircraft.
The bill also provides for a freezing of assets of those members of the diplomatic community or Iranian military who have been identified by the President of the United States as active in weapons proliferation or terrorist activity. The bill clarifies that U.S. entities that establish a subsidiary for the purpose of getting around U.S. sanctions laws can be held liable for the activities of their subsidiaries. The bill also increases funding to the Office of Terrorism and Financial Intelligence of the Treasury Department to ensure that the international financial system is not used by those who support terrorism or engage in proliferation-sensitive activities.
Finally, this bill imposes new requirements that the President actually make a determination and report every
6 months to Congress regarding the sanctionability of certain eligible investments in Iran's energy sector. This is designed to address the problem of billions of dollars in oil and gas investment projects being subject to sanctions--over $27 billion in eligible oil and gas investments since 1999, according to the Congressional Research Service--but successive administrations refusing to make final determinations required by law, much less impose appropriate sanctions on entities involved in such projects, I might add, have raised some certain issues.
In addition to expanding U.S. sanctions on the Government of Iran, this bill would also provide a simple formula for divestment from firms which invest significant amounts in Iran's energy sector with provisions patterned after the Sudan Accountability and Divestment Act that we all voted for earlier this year.
The rationale for this is straightforward. Many of us believe Americans should be able to divest from energy firms doing business with the Iranian regime whose policies they abhor and which by their presence indirectly help to prop up that regime. They should be given the tools they need to make socially responsible decisions, and investors who choose to divest--States, large pension and mutual funds, and others--should be held harmless for these decisions. Likewise, firms which continue to do business in the energy sector in Iran should recognize the substantial risks involved in this decision and adjust their strategies accordingly.
This bill is as much about enabling investors to manage risk as about having Congress set foreign policy. Make no mistake. Investing in Iran these days is risky business, and investors should be fully informed of those risks going in. This bill does not require divestment, it simply permits it, as with the Sudan legislation--if the investments in Iran's energy sector are substantial and if the divestment process is crafted consistent with the provisions of this bill.
Divestment from Iran is already well underway nationwide, prompted by campaigns patterned after the South African divestment movement and that involving the Sudan. Eight States of our country have already enacted Iran divestment legislation. Other States have enacted broader divestment legislation focused on state sponsors of terrorism. Many more States are considering Iran divestment measures in their State legislatures or have taken steps administratively to allow for such divestment.
Some colleges and universities have begun to divest their holdings, as well, and efforts are underway at many more. Large cities, nonprofit organizations, pension and mutual funds have joined this campaign. It is a campaign that enjoys, I might add, worldwide support, and that could provide significant economic leverage to the diplomatic and political efforts to curtail Iran's apparent nuclear ambitions.
How would it work? First, the amendment authorizes States and localities to divest from companies involved in the energy sector in Iran and sets universal divestment standards. Secondly, the bill allows mutual fund and corporate pension fund managers to cut ties with companies involved in these key sectors and offers limited protection from lawsuits for those choosing to divest or not to invest in the first place, while preserving their normal fiduciary duties. Third, this bill allows State and local governments to divest their public pension funds from businesses invested in Iran's energy sector. Fourth, it establishes a new mechanism for disclosure for firms divesting their holdings in such entities and sunsets, I might add, the divestment mechanism when the President of the United States certifies that Iran has ceased its support for international terrorism and its support of weapons of mass destruction.
Let's be very clear about what this amendment achieves in terms of divestment--and what it does not do. It does not outsource foreign policy to State and local governments or run afoul of the supremacy clause of the Constitution, as some have claimed. Rather, it protects the rights of investors to make socially responsible decisions--to refrain from holding assets that may serve to bolster the Government of Iran. It allows States and other investors to divest in a relatively uniform way, if they so choose, so they may avoid the complications of diverging approaches.
Under this bill, States can act out of concern for the long-term financial and reputational risks posed by an affiliation with certain investments in the nation of Iran. Once identifying these specific risks, States are to inform the companies with a notice detailing such issues--not merely based on a foreign policy concern but on the State's assessment of the economic risks posed by investments in firms involved in certain energy-related business in Iran. It thus outlines a Federal divestment policy--a complicated and yet very clear path consistent with U.S. unilateral and multilateral sanctions already imposed, I might add--and authorizes investors to act consistently with that policy, again, if they so choose.
Finally, and very importantly--unlike other legislation acted upon by Congress--the amendment I am offering provides new incentives for countries to strengthen their export control systems to stop the illegal diversion of sensitive and dual-use technology to countries such as Iran and imposes additional licensing requirements on those who refuse to cooperate.
As we confront the realities of a global marketplace, with manufacturers assembling parts of complex machinery such as aircraft and computers from a supply chain spanning the globe, and as regimes such as Iran, North Korea, and Syria trawl various transshipment hubs for such parts to assemble high-technology weapons, it makes sense to address this problem head on.
We have developed a way to do this similar to an approach previously proposed in regulatory form by the administration, with an array of carrots and, if necessary, sticks to prod unwilling countries to get serious about developing and implementing tough, comprehensive export control rules and systems. This measure will strengthen antidiversion measures, and it will help countries willing to bolster their systems to do so and impose tighter licensing restrictions on those countries that have a record of spotty enforcement or that are unwilling to improve their systems.
I was pleased we were able to come to an agreement on this comprehensive approach in the Banking Committee. I might point out that similar legislation was adopted under the leadership of Senator Max Baucus and Chuck Grassley at the Senate Finance Committee, also, I might add, on a bipartisan basis. Much more assertive diplomacy and efforts to bolster our relationship with Iran's people, coupled with tougher financial measures such as these to increase economic pressure to bring the Iranian Government to the table, is the way forward for U.S. policy.
Our European and other allies continue, as I mentioned earlier, to work closely with the United States to increase economic and diplomatic pressure on Iran. I happen to believe this measure complements those diplomatic efforts. It is providing the kind of tools that those who are responsible for the conduct of foreign policy ought to have that will give them the leverage necessary to try and bring Iran back to that negotiating table, back to that political table, that will allow us to diffuse this growing problem, this threat that we all worry about, and bring us to a conclusion that will be satisfactory to us and to Iran, as well, I might point out. The steps contained in this bill are consistent with the strong international consensus that Iran's behavior is unacceptable, and they are in sync with the U.N. sanctions and those additional sanctions imposed by our allies.
Again, I thank my colleagues, particularly Senator Shelby of the Senate Banking Committee, and the 17 other members of that committee, for the adoption of this comprehensive, bipartisan proposal on Iran sanctions. My hope would be, as I said earlier, that we would have the opportunity to offer this proposal before the conclusion of this session of Congress.
Madam President, I wish to briefly, if I could, turn to another subject matter, and one that has certainly captured the attention of all of us in recent days; that is, of course, these tremendous storms that have been raging through the Caribbean as well as, of course, the devastating damage in Texas in the Galveston area, particularly. The sights and the pictures we
are all witnessing on television and in the newspapers certainly bring back the dreadful memories of Katrina. These storms that have ravaged our country are natural disasters. Certainly our prayers and our hopes are with the people of the Galveston area and others who have been afflicted by the terrible flooding in the Midwest. We are concerned about them, and we will do everything we can to help them put their lives back in order.
The devastation we have witnessed is heart-rending, and I think it is incumbent upon us to respond generously and speedily to help the tens of thousands along the Texas coast who need our help.
I rise also to discuss the humanitarian catastrophes inflicted against the people of the Caribbean. I chair the subcommittee on foreign relations that deals with Latin America, and I am particularly interested, obviously, in what happens in this part of the world. I served as a Peace Corps volunteer not far from the Haitian border of the Dominican Republic when I left college in 1966. I served for 2 years in that country, and I have gone back many times over the years and have maintained a close relationship. So when I see these storms ravaging the island of Hispaniola, which includes the Dominican Republic and Haiti, and roar through the island of Cuba--it has done such devastation; I am told it is the worst storm to inflict such damage on that country in more than a half of century--I wish to take a moment to talk about what we might do.
I support an amendment offered by Senator Lugar, the ranking member of the Senate Foreign Relations Committee, and which we have introduced on a bipartisan basis. We hope this might be something that all of our colleagues would support as well. It is to respond to the devastation these storms have caused on the island of Cuba to the Cuban people.
Across the Caribbean, millions of people have been displaced, lost their homes, and watched helplessly as bridges and infrastructure were washed out, leaving them isolated and without supplies. They face serious shortages of food, medicine, and hope.
The need in Haiti is extremely grave. USAID has undertaken an urgent program in Haiti, where hundreds of storm victims have died, thousands of homes have been destroyed, and untold people have been weakened by chronic malnutrition, lack food and water. USAID has already launched a $20 million program to rush assistance to the suffering people of Haiti, and further needs are certain to be identified there in our hemisphere's poorest country where the average income is something like a few dollars a week. It is a nation that has been devastated over the last number of years.
In Jamaica, 72 communities have been hit hard, leaving a dozen people dead and thousands without shelter. The U.S. Ambassador in Kingston has declared a disaster and has begun disbursing $100,000 there. USAID is working with the Jamaican disaster specialists to purchase and deliver hundreds of thousands of dollars of supplies to communities cut off when roads were washed out. The relief supplies include hygiene kits, plastic sheeting, jerry cans, and blankets.
This very effective response brings relief to innocent victims of the storms and it projects the American message of concern and hope for our Caribbean neighbors. Unfortunately, I cannot say the same for our response to the crisis caused by the hurricanes that have battered the lives of the 11 million people on the island of Cuba. Evacuations of 2 million citizens helped reduce the loss of life, but the damage is immense. Hurricanes Gustav and Ike destroyed 150,000 homes and seriously damaged 200,000 others. The United Nations estimates that Cuba suffered between $3 billion and $4 billion in losses. Hundreds of thousands of victims are without shelter, fresh water, and electricity, damage to agriculture is massive, food and medicine are in short supply, and the need for materials to repair homes vastly overtakes supply.
The State Department offered to disburse $100,000 in emergency funds through the U.S. Interests Section--our Embassy in Havana--which is a step in the right direction, and I applaud them making that offer. In addition, over the weekend the State Department offered an emergency shipment of $5 million of assistance to Cuba. Cuban officials--in what I think is a very shortsighted move, in my opinion--rejected the offer, saying they would not accept a handout from a country that would not sell the same items to them.
The administration has also authorized certain U.S.-based nongovernmental organizations, with activities the administration has previously approved, to provide larger amounts of humanitarian assistance in Cuba, including cash donations to approved recipients for 90 days. These Government-approved channels for assistance to Government-approved recipients are again steps in the right direction, but given the devastation that has occurred, it is not hardly enough. They disallow, moreover, the outpouring of assistance from Americans individually who want to help directly and generously, as Americans do in times such as these, not just through administration-approved channels.
Large numbers of the Cuban-American community in our country, eager to help family members back on the island of Cuba, are blocked from doing so by tough regulations that the administration implemented in 2004 in an effort to promote the collapse of the Cuban regime. These regulations dramatically and drastically impair citizens of our country--who come ethnically from the island of Cuba and who have family members there--of the ability to visit their families during this time, even under extraordinary circumstances such as the death of a loved one. The regulations drastically impair their ability to send cash assistance to families in the same manner as all other Caribbean, Central American, and Mexican families do--families who have citizens in this country and have families in Jamaica and Haiti, the Dominican Republic--to go there and provide assistance to them.
It is no secret that the U.S. embargo on Cuba has been, at least in my view, a dismal failure. Rather than weaken the Cuban Government and force it to change, it has only served to weaken the Cuban people and deprive them of any hope at all. The administration's tougher regulations circumscribing Americans' right to help family and friends in dire need in Cuba are part of the same failed policy. Apparently, some in the Bush administration believe that holding firm on embargo policy--even during a humanitarian disaster--will discredit Fidel or Raul Castro and lead to their precipitous downfall. When human suffering is as massive as we see in Cuba today after these hurricanes, there is no room, in my view, for such cynicism.
Despite the obvious need for a total overhaul of policy toward Cuba, the amendment Senator Lugar and I have introduced today addresses only the immediate humanitarian crisis and only on a temporary basis. For a period of 180 days, our amendment would lift prohibitions on Americans with families in Cuba to travel to the island to provide help during the crisis. Secondly, only for 180 days, our proposal would ease restrictions on the cash remittances by any American to Cuban people at this time of extreme need--only for 180 days. Thirdly, our proposal would expand the definition of gift parcels that Americans are authorized to send to the Cuban people or nongovernmental organizations over the next 180 days to include food, medication, clothing, hygiene items, and other daily necessities. Fourth, the bill would allow the cash sale using mechanisms similar to those already in place for the sale of agricultural products, of certain items Cubans need to rebuild their homes, again for a limited period of 180 days.
Let me be absolutely clear. These measures do not lift the embargo at all. They have nothing to do with the embargo per se but merely loosen some of these less humane regulations implemented in 2004 in a direct response to a humanitarian crisis. Cuban Americans in this country ought to be allowed to help their family members on the island of Cuba during this time--for 180 days--to be able to send food and clothing and medicines, some cash remittances, or to travel there to help out, and they should not be banned by the United States of America.
Let me promise you something: Hugo Chavez will be filling that gap. Why are we going to allow, in this hemisphere, someone in Venezuela whom we abhor
to step in to provide some assistance and help when the United States ought to be doing something, at least allowing people to step in to make a difference in the lives of these people?
These are modest steps that allow the greatness and the generosity of the American people to shine through without political or ideological filters. I can think of no better way of giving the Cuban people a message of hope that we stand with them. We disagree with their Government and their Government policies, and we are not likely to change that anytime soon. But we care about them and what happens to their families and their children. In a natural disaster, the worst in 50 years, an island country 90 miles off our shore, we ought to be able to do a better job than sit here and lecture about geopolitics and allow them to go through this suffering without allowing people to help others to get back on their feet again.
The intent of this amendment has broad support. The U.S. Conference of Catholic Bishops wrote:
In light of the devastation and humanitarian disaster
caused by recent hurricanes in Cuba and the efforts of
extended families, friends and organizations to reach those
in need, I urge you, [President Bush] to suspend--even
temporarily--Treasury and Commerce Department restrictions
and licensing requirements for humanitarian travel and
remittances by American citizens and assistance by not-for-
profit organizations. At times of crisis, there are simple
and basic acts of charity on which people rely.
The Catholic bishops and numerous NGOs are right, and we know it, and I think we should help.
To those who think that refusing to help will somehow serve our U.S. national interests, I make just two observations. We need to be honest with ourselves: To be seen as wanting the Cuban people to suffer and starve--while we rush to the aid of their Caribbean neighbors--is not going to contribute to our common goal of promoting a peaceful, democratic transition, which Cuba desperately needs and deserves, and good relations between our countries in the future.
Moreover, as we stand on the sidelines, other countries are more than willing to fill that vacuum. As I mentioned a moment ago, President Chavez of Venezuela has been most generous, according to press reports. Russia has sent four cargo planes with tons of emergency supplies and construction materials. China has provided over $300,000. Spain has already sent planeloads of relief supplies. Brazil, Argentina, and Mexico are offering assistance without political restrictions.
Senator Lugar and I believe this is a moment in which we ought to set aside--at least for 180 days--our differences to a nation of people who are less than 100 miles off our shore, who have family members--many courageous people who live in this country and who want to do something to help their family members and friends as they go through recovering from these terrible storms that have ravaged their nation. At the appropriate time, Senator Lugar and I wish to offer this amendment and urge our colleagues, whatever other differences we may have had and will have on Cuban policy, this is a moment when we all ought to come together to step up and make a difference in the lives of people who, frankly, could use the help.
I yield the floor and note the absence of a quorum.