National Defense Authorization Act For Fiscal Year 2006
Mr. President, I extend my thanks to the Senator from Maine for her graciousness, in terms of describing an effort we are both very much interested in, in solving a problem that exists before us. Very soon, the Senate is going to vote on…
Mr. President, I extend my thanks to the Senator from Maine for her graciousness, in terms of describing an effort we are both very much interested in, in solving a problem that exists before us. Very soon, the Senate is going to vote on the two amendments, both of them aimed at foreign subsidiaries doing business with terrorist nations. But only one of these amendments--and it may not come as a surprise, mine--gets the job completely done.
I have great respect for the Senator from Maine. She works very hard to chair a committee on which I sit, the Homeland Security and Governmental Affairs Committee, and accomplishes a lot. But unfortunately, in this case, the amendment she offered will not close the loophole we are concerned about, nor will it stop American businesses from doing business with terrorist nations such as Iran.
It recognizes the seriousness of the problem but unfortunately, as it is presented, does not solve the problem. Iran is one of the world's largest state sponsors of terrorism. Nobody doubts that. Every year, the Iranian Government funnels tens of millions of dollars to Hamas and Hezbollah and Islamic Jihad, to name a few. These organizations turn around and use that money to murder Americans and others who are trying to live their lives. No American company should be permitted to help them in any way, either directly or with a sham corporation.
Iran also uses its oil revenues to fund its nuclear weapons program. Once again, through sham corporations, American companies are helping them develop those oil revenues. Revenues, for what purpose? The purpose is to attack our people and other innocents across the world. That is why we do subject Iran to one of the strongest sanction regimes that we have. But some American companies exploit a loophole in our sanctions laws. They go offshore, open a sham foreign subsidiary and use that foreign subsidiary to do business with the Iranian regime with impunity and help create profits for them to be used for any purpose they choose.
This has to stop. In the past, I believe the Senator from Maine agreed
with me that this has to stop. In fact, last year she supported my amendment. So I am hopeful that she will once again vote for my amendment. I am going to vote for hers.
I want to be clear. I have no objection to the Collins amendment, and I am going to vote for it, as I said, as a signal that we must do something to stop supporting these avowed enemies of America. The Collins amendment is not a bad amendment, but it only codifies existing regulations that, frankly, are not enough. It confirms what we have now and permits companies to escape sanctions.
In the case of Cuba, we do not allow, any American company to use a sham to do business there. We ought not permit Iran to do the same things.
If we want to close this loophole, my amendment is the only one that accomplishes it. Under the Collins amendment, the scenario on this placard is still possible. Here is a U.S. corporation. Here is a foreign subsidiary of the U.S. corporation. They can do business with Iran, who then sends funds to Hezbollah, Hamas, and other terrorist organizations. They have their subsidiaries operating in other places. But they should not have subsidiaries that are allowed to do business in this way.
We want to strengthen existing law. The way we do it is to explicitly say that any foreign subsidiary, controlled by an American company, must obey our sanctions.
The senior Senator from Michigan pointed out last week that the standard we have, the sanctions standard, already applies to foreign subsidiaries that do business in Cuba. I repeat what I said before. My amendment simply applies the same rules to terrorist states such as Iran.
I ask my colleagues, is fighting al-Qaida really less important than fighting Castro? If you vote no on this amendment, that is what you are saying.
My amendment is simple and straightforward. It makes clear we will not allow foreign subsidiaries of U.S. companies to provide funds to Iran. It is common sense. That is why a conservative group, the Center for Security Policy, supports my amendment. Frank Gaffney, who is president of the Center for Security Policy, said in the Washington Times today:
If the Senate is serious about truly closing this loophole,
it must adopt the Lautenberg amendment.
That is from Frank Gaffney, president of the organization.
We have to stop U.S. companies from doing business with terrorists when they intend to murder innocent Americans. I ask my colleagues, please support my amendment. Families across this country do what they can to protect their loved ones and we can do no less. Every day we wait to close this loophole, more and more money flows into the hands of terrorists. For the sake of our troops, for the sake of our citizens, we have to shut down this source of terrorist funding.
I again restate my intent. My intent is to support the Collins amendment because it does open our eyes a little bit further to the problem. But I hope, if we really want to solve this problem, the Lautenberg amendment is the one that will finally be voted for.
I yield the floor.
How much time remains?
I appreciate that clarification.
I ask the Senator from Maine, under your amendment, is it possible for a foreign subsidiary owned and controlled by a U.S. company to do business with Iran?
I respect the Senator from Maine and do allow time for an answer, if it is a short answer, please.
If the Senator would yield for a question on my time. Can a subsidiary do business with Iran?
I think the conclusion is in error. Rather than have the debate about the precision with which the Collins amendment is drawn, I point out two things. AIPAC and the Cuban American National Foundation support my amendment. That is very specific.
In the reference used about a Saudi company doing business with Israel, Saudi Arabia already boycotts Israel, so that question is taken care of.
I fail to see, I must say, why we are going through these gyrations explaining a perverse effect when, in fact, what I want to do is stop any--by the way, the practice is taking place, currently.
What the Senator from Maine has done is codify regulation. I want to stop any possibility for a sham corporation that wants to evade our laws to do business. That is where we are.
I hope my colleagues will support my amendment.
I ask for the yeas and nays.
Mr. President, we have just had a vote on the Collins amendment that confirms we have a problem. There is no denying there is a problem out there, but there is only one way to solve it; and that is to say that any American company cannot form a sham corporation and do business with Iran as is presently being done. We do not permit it in Cuba, and we should not permit it in any other place in the world. So I hope now I will get the same kind of support we have just seen because we want to cure the problem. This is the best way to do it.