Emergency Supplemental Appropriations Act For Defense And For The Reconstruction Of Iraq And Afghanistan, 2004
Mr. Chairman, I am glad to see that the gentleman from Maryland will vote for a loan in the next supplemental that is going to come, and I rise in support of the Pence amendment. Despite the arguments that we have heard against the use of…
Mr. Chairman, I am glad to see that the gentleman from Maryland will vote for a loan in the next supplemental that is going to come, and I rise in support of the Pence amendment.
Despite the arguments that we have heard against the use of these loans, we
need to reinforce the point that the taxpayers of this country should not be required to foot the entire bill for Iraq reconstruction indefinitely. So maybe not this time, but maybe next.
I think many of my colleagues know I have an amendment also; it is a sense of the Congress that, once Iraq is on their feet again, that they will help pay back some of these loans. We do not want to tie the hands of the administration or the Iraqi Government, but we want to allow some type of flexibility. So I may offer my sense of the Congress on this same matter.
The people of Iraq should not be burdened, of course, with the lavish spending of the Saddam Hussein regime which borrowed heavily to oppress his people and to enrich its own leaders.
Mr. Chairman, I also believe that it is unfair to compare the proposed U.S. loan idea in support of Operation Iraqi Freedom to the debts amassed under Saddam Hussein and his evil regime. We and the American taxpayers want to rebuild hospitals, schools, and prisons. Saddam's debt went to gilded toilet paper holders, a backyard zoo for his delinquent children, and, of course, a weapons of mass destruction program.
We will give the President the funds our country needs to protect and sustain our troops and rebuild a country whose people want to live proud and free again. All we are seeking is some measure to ensure that the American people are not permanently footing this bill.
I rise in support of the Pence amendment. I believe, despite some of the arguments that we have heard against the use of loans, that we need to reinforce the point that the taxpayers of this country should not be required to foot the entire bill for Iraqi reconstruction indefinitely.
At recent town hall meetings in my district, constituents voiced concerns on this very subject. Why can Iraq not begin to provide funding for reconstruction and security themselves? I think all of my colleagues would agree this is a valid question. Late into last night, my staff fielded call after call from constituents who were proud of America's efforts to rebuild Iraq, yet they wanted to see Iraq begin to shoulder the burden of reconstruction once a sovereign and viable government is in place.
I also have an amendment a sense of the Congress that once Iraqis are on their feet again they can help pay us back these loans, but felt compelled to speak on this amendment. We don't want to tie the hands of the Administration or the Iraqi government. What we want to do is allow for flexibility. I may offer the sense of the Congress later on.
At the center of this debate over loans vs. grants is the massive outstanding debt that European and Arab powers are holding over the recently freed heads of the Iraqi people. Last night we debated a resolution that would ask that these countries no longer saddle the war torn nation with what is at best a dubious debt.
Forgiving these debts would constitute both an historic contribution to the economic development of post-Saddam Iraq and a major gesture of support for the Iraqi people. Estimates of Iraq's indebtedness vary greatly, from 60 billion to several hundred billion dollars. The most comprehensive study of Iraqi debts, by the Center for Strategic and International Studies (CSIS), calculates Iraq's total debt to be $127 billion, of which $47 billion is accrued interest. Iraq owes a further $199 billion in Gulf War compensation and $57 billion in pending contracts signed between the Saddam Hussein regime and foreign companies and governments. Iraq's overall financial burden, according to the CSIS figures, is $383 billion.
Based on these figures, Iraq's financial obligations are 14 times its estimated annual gross domestic product (GDP) of $27 billion--a staggering $16,000 per person.
Arguably, the people of Iraq should not be burdened with the lavish spending of a tyrannical regime, which borrowed heavily to oppress its people and enrich its own leaders. I also believe that it is unfair to compare the proposed US loan idea in support of Operation Iraqi Freedom to the debts amassed under Saddam and his evil regime. We, and the American taxpayer, want to rebuild hospitals, schools, and prisons. Saddam's debt went to gilded toilet paper holders, a backyard zoo for his delinquent children, and, of course, a weapons of mass destruction program.
Mr. Chairman, we will give the President the funds our country needs to protect and sustain our troops and rebuild a country whose people want to live proud and free again. All we are seeking is some measure to ensure that the American people aren't permanently footing this bill.
The American people are generous people. They understand that it is for the greater good to help another help themselves. But the American people also recognize we cannot continue to provide open-ended monetary assistance if we do not receive something in return. It is a meet-us- halfway approach.
Are we asking too much for the administration to provide opportunities for American generosity, persistence, patience and sacrifice to be acknowledged, appreciated and repaid? I think not. Americans will not shy away from the mission it has been tasked to complete. We are making progress every day, and our troops, while facing danger, are at the same time offering their time, money, and supplies to assist the local Iraqi people.
I hope that my colleagues will consider supporting this amendment. It strikes the right balance between grants and loans and shows the American people that we are approaching the use of their taxpayer dollars in as a responsible manner as possible as we help rebuild a newly freed country.