Mr. Speaker, as Paul Harvey says on his radio show, now for the rest of the story. It is interesting, many of the Democrats have talked about job loss in America, but they do not mention the fact that trade has actually brought jobs into…
Mr. Speaker, as Paul Harvey says on his radio show, now for the rest of the story.
It is interesting, many of the Democrats have talked about job loss in America, but they do not mention the fact that trade has actually brought jobs into America. In Ohio, the Honda plant now paying high wages for its employees assembling Honda automobiles. In South Carolina, I know the Democratic governor was very instrumental in getting BMW and other companies to come to their State to create jobs for their citizens, high-wage, high-paying jobs.
You can look at one-half of the spectrum and say we have real problems. We are trying to find employment for every American. But they seem to ignore, they seem to ignore the fact that trade has brought jobs to this country, good jobs to communities that were desperately in need of those jobs.
This morning in a 1-minute, I was extraordinarily critical, rightfully so, of the Democratic candidate for the presidency. I am not allowed under House rules, I was admonished today, for using the name of a Senator, so most of us know who I am talking about.
But the word and phrase used yesterday on an open mike was that this administration is corrupt and is lying. That is the charge by the Democratic nominee for President about the sitting President of the United States of America. I called it this morning despicable and disgraceful, and I stick by that terminology, because that is the truth.
Now, look at who they are talking about. We are talking really about Iraq, because they keep using that as the reason they are calling this President a liar. They are saying Iraq is the reason he should be called these derisive terms, which I believe are disrespectful for any sitting chief executive President of the United States.
So what does that say ultimately, that we should not have done anything in Iraq, we should not have gone to Iraq, we should not have dealt with Iraq? That is their conclusion.
Well, today in the New York Times, ``Saddam team skimmed billions in aid projects. Cash in suitcase.''
In its final years in power, Saddam Hussein's government systemically extracted billions of dollars in kickbacks from companies doing business with Iraq, funneling most of the illicit funds through a network of foreign bank accounts in violation of the UN treaties.
Millions of Iraqis were struggling to survive on rations of food and medicine, yet the government's hidden slush funds were being fed by suppliers and oil traders from around the world, who sometimes lugged suitcases full of cash to ministry offices.''
That is who they are defending. Saddam Hussein, who killed hundreds of thousands of his own citizens, we should not have gone there and interrupted his killing spree. We should not have done anything to stop the demonic leadership of Saddam Hussein.
I reject the comments, and I am entering the entirety in the Record, because I want people to be able to read in the Record what the New York Times discovered about the cash-skimming operations of this ugly regime.
Now, another article that I will enter in its entirety in the Record, because it talks again about an outside observer's view of this President, an outside observer. It happens to be Bill Sammon of the Washington Times. The headline, ``Bush's Grand Strategy Overlooked by Liberal Historians.''
``An influential Democratic historian has credited President Bush with instituting one of only three grand strategies in the history of the U.S. foreign policy, by trading in the doctrine of containment for preemption. John Lewis Gaddis of Yale said his fellow historians have not paid sufficient attention to the importance of Mr. Bush's sweeping overhaul of U.S. foreign policy because they are blinded by their liberal bias. He also accused former President Bill Clinton of failing to adequately address global threats that gathered on his watch,'' the World Trade Center first bombing, Khobar Towers, the two embassies, all during the watch of Clinton.
``The Bush team really did, in a moment of crisis, come up with a very important statement on grand strategy, which has not been taken as seriously as it should have been taken, particularly within the academic community.
``Mr. Gaddis writes that America's three grand strategies were instituted by Mr. Bush,'' this President Bush, ``John Quincy Adams and Franklin Delano Roosevelt. All three strategies were prompted by rare, catastrophic attacks on America by foreign enemies.''
He goes on to quote, ``The Clinton administration was somewhat like the Harding and Coolidge administrations after World War I, Mr. Gaddis said. There was the sense that the war had been won, the fundamental processes in world politics were favorable to us, and therefore we could sit back and let them run. But these processes of globalization and self-determination during the Clinton administration did nothing to stop terrorists from using minimal resources to inflict massive death and destruction against the United States and its interests. The former President did not act decisively to head off a gathering threat.''
I bring you to September 11. I bring you to the carnage of September 11 as a result of our not being willing to take on any enemy.
Look at what has happened because of his leadership: Iraq. Look at North Korea turning over nuclear documents. Look at Libya surrendering nuclear hardware. Look at Pakistan and India, finally talking over Kashmir. These are the results of a determination by this President to root out terrorism.
I conclude by saying this, and this is important in context to this article. Mr. Gaddis, who describes himself as a very long-term disillusioned Democrat who still has hopes for the Democratic Party, disputed the liberal stereotype of the President as a lightweight. There certainly have been tendencies to underestimate President Bush himself and to view him in the way that Reagan was viewed when he first came in, as being a cipher, manipulated by his own advisers. That turned out not to be true of Reagan, and it is turning out not to be true of George Bush.
Mr. Speaker, I will at this time enter the entirety of this article into the Record, along with other documentation referred to earlier. I salute our President. I am proud of our President and proud to stand with him in Florida in the coming months.
[From the New York Times, Mar. 1, 2004]
Saddam Team Skimmed Billions in Aid Project Cash in Suitcases/UN
Sanctions Violated
(By Susan Sachs)
Baghdad.--In its final years in power, Saddam Hussein's
government systematically extracted billions of dollars in
kickbacks from companies doing business with Iraq, funneling
most of the illicit funds through a network of foreign bank
accounts in violation of United Nations sanctions.
Millions of Iraqis were struggling to survive on rations of
food and medicine. Yet the government's hidden slush funds
were being fed by suppliers and oil traders from around the
world who sometimes lugged suitcases full of cash to ministry
offices, said Iraqi officials who supervised the skimming
operation.
The officials' accounts were enhanced by a trove of
internal Iraqi government documents and financial records
provided to The New York Times by members of the Iraqi
Governing Council. Among the papers was secret correspondence
from Saddam's top lieutenants setting up a formal mechanism
to siphon cash from Iraq's business deals, an arrangement
that went unnoticed by UN monitors.
Under a UN program begun in 1997, Iraq was permitted to
sell its oil only to buy food and other humanitarian goods.
The kickback order went out from Saddam's inner circle three
years later, when limits on the amount of oil sales were
lifted and Iraq's oil revenues reached $10 billion a year.
In an Aug. 3, 2000, letter marked urgent and confidential,
the Iraqi vice president, Taha Yassin Ramadan, informed
government ministers that a high-command committee wanted
extra revenues from the oil-for-food program. To that end, he
wrote, all suppliers must be told to inflate their contracts
by the biggest percentage possible and secretly transfer
those amounts to Iraq's bank accounts in Jordan and the
United Arab Emirates.
Iraq's sanctions-busting has long been an open secret. Two
years ago, the U.S. General Accounting Office estimated that
oil smuggling had generated nearly $900 million a year for
Iraq. Oil companies had complained that Iraq was squeezing
them for illegal surcharges, and Saddam's lavish spending on
palaces and monuments provided more evidence of his access to
unrestricted cash.
But the dimensions of the corruption have only lately
become clear, from the newly available documents and from
revelations by government officials who say they were too
fearful to speak out before. They show the magnitude and
organization of the payoff system, the complicity of the
companies involved and the way Saddam bestowed contracts and
gifts on those who praised him.
Perhaps the best measure of the corruption comes from a
review of the $8.7 billion in outstanding oil for food
contracts by the provisional Iraqi government with UN help.
It found that 70 percent of the suppliers had inflated their
prices and agreed to pay a 10 percent kickback, in cash or by
transfer to accounts in Jordanian, Lebanese and Syrian banks.
At that rate, Iraq would have collected as much as $2.3
billion out of the $32.6 billion worth of contracts it signed
since mid-2000, when the kickback system began. And some
companies were willing to pay even more than the standard 10
percent, according to Trade and Oil Ministry employees.
Iraq's suppliers included Russian factories, Arab trade
brokers, European manufacturers and state-owned companies
from China and the Middle East. Iraq generally refused to buy
directly from U.S. companies, which in any case needed
special licenses to trade legally with Iraq.
Iraq also created a variety of other, less lucrative,
methods of extorting money from its oil customers. It raised
more than $228 million from illegal surcharges it imposed on
companies that shipped Iraqi crude oil by sea after September
2000, according to an accounting prepared by the Iraqi Oil
Ministry late last year. An additional $540 million was
collected in under-the-table surcharges on oil shipped across
Iraq's land borders, the documents show.
A lot of it came in cash, recalled Shamkhi Faraj, who
managed the Oil Ministry's finance department under the old
government and is now general manager of the ministry's oil-
marketing arm. I used to see people carrying it in briefcases
and bringing it to the ministry.
UN overseers say they were unaware of the systematic
skimming of oil-for-food revenues. In any case, they add,
they were focused on running aid programs.
The director of the Office of Iraq Programs, Benon Sevan,
declined to be interviewed about the oil-for-food program. In
written responses to questions sent by e-mail, his office
said he learned of the 10 percent kickback scheme from the
occupation authority only after the end of major combat
operations.
As the details of the corruption have recently emerged, law
enforcement authorities in several countries said they had
opened criminal and civil investigations into whether
companies violated laws against transferring money to Iraq.
Treasury Department Investigators have also been helping the
Iraqi authorities recover an estimated $2 billion believed to
be left in foreign accounts. So far, more than $750 million
has been found in foreign accounts and transferred back to
Iraq, said Juan Zarate, a deputy assistant Treasury
secretary.
To some officials of Iraq's provisional government, what is
perhaps most insulting is how little their country got for
its oil money. Taking stock of what was bought before the
U.S.-led invasion toppled Saddam last spring, they have found
piles of nonessential drugs, mismatched equipment and
defective hospital machines.
You had cartels that were willing to pay kickbacks but
would also bid up the price of goods, said Ali Allawai, a
former World Bank official who is now interim Iraqi trade
minister. You had rings involved in supplying shoddy goods.
You had a system of payoffs to the bourgeoisie and royalty of
nearby countries.
Everybody was feeding off the carcass of what was Iraq.
The UN Security Council first imposed a trade embargo on
Iraq on Aug. 9, 1990, one week after Saddam's invasion of
Kuwait. It has kept in place after the Gulf war in 1991, with
the provision that sanctions would be lifted after Iraq
destroyed its unconventional weapons and ended its weapons
program.
But as living conditions deteriorated, the council made
several offers to let Iraq export limited quantities of oil
to buy food and medicine. The two sides agreed on a mechanism
only in 1966.
In 1999, Iraq was permitted to sell as much oil as it
wanted, with the proceeds going into an escrow account at
Banque Nationale de Paris, supervised by the United Nations.
The new rules also allowed Iraq to sign its own contracts for
billions of dollars in imported goods.
As ministry officials and government documents portrayed
it, the oil-for-food program quickly evolved into an open
bazaar of payoffs, favoritism and kickbacks.
The kickback scheme worked, they said, because the payoffs
could be included in otherwise legitimate supply contracts
negotiated directly by the former government and then
transferred to Iraq once the United Nations released funds to
pay the suppliers.
We'd accept the low bid and say to the supplier, ``Give us
another 10 percent'' said Faleh Khawaji, an Oil Ministry
official who used to supervise the contracting for spare
parts and maintenance equipment. ``So that was added to the
contract. If the bid was for $1 million, for example, we
would tell the supplier to make it $1.1 million.''
The contract would then be sent to the U.N. sanctions
committee, which was supposed to review contracts with an eye
only to preventing Iraq from acquiring items that might have
military uses. The kickbacks were paid into Iraq's accounts,
and designated ministry employees withdrew the cash and
brought it to Baghdad on a regular basis, according to
Khawaji and Iraqi financial records.
U.S. and European investigators said they were trying to
determine whether the banks knew they were being used for
illegal financial dealings with Iraq.
Under the oil-for-food program rules, the United Nations'
oil overseers had to certify that Iraq was selling its crude
oil at fair value. Until the overseers changed the pricing
formula in late 2001, Iraq's oil sold at a discount compared
with similar oil from other producers.
At the same time, Oil Ministry officials said, purchasers
of Iraqi oil were required to pay a surcharge, either in cash
or by transferring money into Iraqi accounts in foreign
banks.
When oil companies complained to the United Nations about
the per- barrel surcharges, Iraq levied higher charges on
ships loading at its port.
When Dr. Khidr Abbas became Iraq's Interim minister of
health 6 months ago, he discovered some of the effects of
Saddam's political manipulation of the oil-for-food program.
After a review of the ministry's spending, he said, he
canceled $250 million worth of contracts with companies he
believed were fronts for the former government or got
contracts only because they were from countries friendly to
Saddam.