[Congressional Record Volume 140, Number 133 (Wednesday, September 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 21, 1994]



                PLO-ISRAEL PEACE ACCORD: ONE YEAR LATER

  The SPEAKER pro tempore (Mr. Stupak). Under the Speaker's announced 
policy of February 11 and June 10, 1994, the gentleman from California 
[Mr. Berman] will be recognized for 60 minutes as the designee of the 
majority leader.
  Mr. BERMAN. Mr. Speaker, I rise today to commemorate the first 
anniversary of the signing of the Israel-PLO Peace Accord last 
September 13 on the White House lawn.
  This has been a dramatic, difficult, but on the whole, very positive 
year. The peace process between Israel and her Arab neighbors, 
especially Palestinians, has become institutionalized in a way that I 
believe is all but irreversible. There has been an historic sea change 
in the way in which the two peoples regard each other and the nature of 
the conflict.
  I also want to point out that this has been an equally dramatic and 
historic year for the diaspora communities--Jewish and Arab--who have 
worked together to demonstrate and build support for the peace process.
  Organizations such as the American Israel Public Affairs Committee, 
Americans for Peace Now, the National Association of Arab Americans, 
and the American Muslim Public Affairs Council are ensuring that the 
constituency for peace and reconciliation strengthens and grows. At the 
same time, new organizations--like Builders for Peace--are working to 
ensure that peace becomes a reality and provides tangible benefits on 
the ground.
  It is truly remarkable to see how quickly that which would have been 
inconceivable less than 2 years ago has become simply routine.
  Two years ago, peace and integration into the Middle East seemed a 
distant dream for most Israelis. Now, Israelis and Arabs meet all the 
time, formally and informally, in the region and around the world.
  Two years ago it was a crime for any Israeli to meet the PLO 
officials. Now Israeli Ministers' meetings with Chairman Arafat rate 
one paragraph articles on page seven of Israeli newspapers.
  Two years ago the notion of Israeli officials landing in official 
Israeli aircraft in Arab States would have seemed unthinkable; today, 
Israeli officials travel publicly to Arab States, and no one blinks.
  What have we accomplished on the ground in 1 short year?
  Israelis and Palestinians have implemented the autonomy agreement in 
Jericho and Gaza.
  A Palestinian authority has been established, a police force trained 
and put into operation.
  Early empowerment has been accomplished for a number of issues in 
areas outside the autonomous zones.
  Methods to assure transparency and accountability in international 
donations to be given to the Palestinian authority are almost 
finalized, paving the way for the flow of assistance to begin in 
earnest.
  On the wider peace front, Jordan and Israel have officially ended the 
state of war between them. Jordanian aircraft now fly over Israeli 
airspace, the two countries have opened up border crossing points for 
the free flow of third country tourism, and a final peace treaty is 
thought to be only months away from completion.
  Israel, the Palestinians, and a dozen Arab States meet routinely--and 
do so in the region--on such regional issues as security and arms 
control and the environment, adopting joint measures and common 
regional approaches.
  While progress has been slower on the Syrian-Lebanese tracks, even 
here at least the sides are on the same negotiating field, and the 
contours of a settlement are taking shape.
  In short, for both Israelis and the Palestinians, life in the region 
is becoming normalized. Perhaps, most encouraging, even though 
international assistance has flowed more slowly than we might have 
wished, Palestinians on the ground have not yet lost their sense of 
optimism and belief in the process.
  Arabs and Israelis increasingly regard each other as neighbors and 
not as adversaries. This accomplishment cannot be overstated; it is of 
fundamental and overriding importance and underlies both the tremendous 
progress that has been made already and the optimism we share that the 
remaining problems are not beyond the scope of settlement.
  We should not shy away from the fact that there are some key problems 
that will require great skill to resolve. These include the willingness 
and ability of the Palestinian Authority to implement and operate a tax 
collection system, including property taxes.
  At the same time, particularly in Gaza, there is up to 50 percent 
unemployment, aggravated by the inability of Palestinians to work, in 
large numbers, in the Gulf States and Israel.
  There is still a major problem with the consolidation of democracy, 
press freedom, and the rule of law. Ultimately, it is for the 
Palestinians to resolve the tensions that exist between certain 
elements of the previously Tunis-based PLO leadership and those 
Palestinians who reside in the territories and who are perhaps more 
familiar with Israeli style pluralism and democracy. A key goal of U.S. 
assistance is to assist those many grassroots, civic, human rights, and 
political organizations working to create an accountable democracy.
  I am particularly disturbed by recent curbs on press freedom. Last 
month Chairman Arafat banned the Al-Nahar newspaper because of his 
objections to its coverage of the Jordan-Israel pact. The paper was 
allowed to resume publication only after the publisher agreed to commit 
himself to the national line and Arafat's media spokesman issued an 
edict saying the press ``should not be against the interests and 
security of the Palestinian people.''
  Underlying all of this is the urgent need to develop a constitutional 
and uniform legal code for the Palestinian Authority. Currently, law 
enforcement is conducted through a hodgepodge of British mandate, 
Ottoman, Egyptian, Jordanian, and Israeli military law and regulation. 
Resolving this problem is particularly important as we meet requests to 
fund and strengthen the police forces. Investors, too, require an 
enforceable system of civil and commercial law in order to conduct 
business transactions.
  These, of course, are short-term problems that need immediate 
attention. Ahead lie the final status issues concerning Jerusalem and 
the ultimate resolution of Palestinian political identity. Both sides, 
of course, will be influenced in determining their attitudes to these 
questions by the actions of the other and the willingness of both to 
keep to the letter and spirit of their agreements.
  I am particularly proud of the role the United States is playing in 
making the peace process work. We have provided both the essential 
political and substantive support necessary to permit the progress that 
has been made so far and to sustain the process over the longer term. 
On the ground, U.S. funds are already being used to build hundreds of 
new housing units, conduct health programs, provide small business 
support and fund a whole range of private voluntary organizations.
  And here at home, Americans of diverse backgrounds, whose previous 
relations have mirrored the conflict in the Middle East, now join in 
common cause to support and promote peace.
  Mr. Speaker, I am pleased that so many of our colleagues are joining 
with us today to commemorate this truly historic event. Let us renew 
our commitment to work to ensure the success of all that has been 
achieved this year and signal American readiness to play a constructive 
and positive role in the pursuit of a comprehensive, secure, and just 
peace agreement between Israel and all her neighbors.
  Mr. WHEAT. Mr. Speaker, I rise to join my colleagues in recognizing 
the historic accords--the Declaration of Principles [DoP]--signed one 
year ago by Israel and the Palestine Liberation Organization [PLO].
  All of us remember that promising September afternoon on the White 
House lawn as the groundwork for peace was laid. In an image that many 
of us believed we would never see, a message of hope for lasting peace 
in the Middle East was broadcast around the globe.
  Over the course of the last year, additional agreements have been 
reached building upon the framework of the DoP, troops have been 
withdrawn from the Gaza Strip and Jericho, the Palestinian Authority 
has been established, and Jordan has finally ended its state of war 
with Israel and moved down the path of peace.
  Much has been achieved in the last year, but much more remains to be 
done.
  Terrorism in the region continues. Israel and Syria have not yet made 
peace.
  And the Arab League boycott continues in defiance of all the progress 
that has been made. We must continually remind those seeking to make 
peace with Israel that public talk of partnership and dialogue has a 
hollow ring as long as those same nations maintain the Arab Boycott.
  The boycott remains an affront to the peace process and it must end. 
And I will continue to work with my colleagues toward that goal.
  Mr. Speaker, as we enter the second year of the DoP, it is imperative 
that the United States remain vigilant in the cause of peace.
  We must maintain our role as a facilitator, not an imposer, of peace. 
Peace, after all, cannot be dictated from the outside, it can only come 
from the parties themselves. We must also maintain our support to those 
truly committed to peace.
  Mr. Speaker, I represent the congressional district of Harry Truman. 
It was President Truman who recognized the State of Israel moments 
after it was established. Since that time, the United States has not 
wavered in its commitment to the peace and security of the State of 
Israel.
  Israel is our strategic partner in one of the world's most unstable 
and turbulent regions. And it is our ally in democracy.
  As we work with the people of the region to help move the Middle East 
peace process forward, we must also continue to preserve the United 
States-Israel alliance and ensure the security of Israel.
  A lasting peace in the Middle East is clearly in American strategic 
and economic interests. As we build upon the foundation laid last year, 
I will continue to support efforts toward that long-sought goal.
  Mr. ACKERMAN. Mr. Speaker, I rise today to honor the 1-year 
anniversary of the historic signing of the Declarations of Principles 
by Israel and the Palestinian Liberation Organization.
  Based on the Declaration, and despite problems, the Israeli-
Palestinian peace has flourished over the past year. Israel and the 
Palestinians have signed an agreement that has given the Palestinians 
self-rule in the Gaza Strip and Jericho. Many aspects of daily 
governance in the West Bank and Gaza have been, or are in the process 
of being transferred to the Palestinians.
  More than just facilitating the peace between Israel and the 
Palestinians, the Declaration of Principles has led to the 
normalization of relations between Israel and Jordan. A 46-year-old 
Jordanian declaration of war on the Israeli State has now assumed its 
rightful place in the history books. Joint projects between Israel and 
Jordan are underway--hopefully signalling the beginning of peaceful, 
neighborly relations.
  Mr. Speaker, Certainly all is not settled in the Mid-East. The 
Palestinian authorities have not adequately controlled terrorism. 
Israel and Syria have not yet reached a peace agreement. The Arab 
League boycott on Israel is still in place--violating universal 
principles of free trade. The boycott harms the Israeli economy as well 
as the fledgling Palestinian economy. Mr. Speaker, all that having been 
said, I urge all my colleagues to join me as I honor the anniversary of 
the historic declaration that has changed the course of history in the 
Middle East forever.
  Mr. LANTOS. Mr. Speaker, let me first of all commend my distinguished 
colleague from my home State of California, Mr. Berman, for calling 
this special order. Congressman Berman is one of the finest, most 
energetic and intelligent Members of the Congress, and his leadership 
in marking this important anniversary is only one of the examples of 
his enlightened and far-sighted leadership.
  I wish to commend the State of Israel and Prime Minister Rabin and 
Foreign Minister Peres and the moderate leadership of the Palestine 
Liberation Organization for the great strides toward peace made in the 
year since their courageous signing of the Declaration of Principles 
here in Washington last September. In the past year, the world has 
witnessed massive fissures in the once solid wall of hatred and 
mistrust between Arabs and Israelis. Israel and the PLO have reached 
additional agreements based on the Declaration of Principles, Jordan 
declared an end to its 46-year state of war with Israel, and the Jewish 
State has achieved unprecedented levels of international recognition.
  Nevertheless, neither the parties to peace nor their friends and 
allies can rest while several difficult obstacles remain. Chief among 
the obstacles to peace has been the failure of the Palestinian 
Authority to halt terror attacks against Israelis by extremist 
Palestinians within the self-rule areas of Gaza and Jericho. We must 
call upon Chairman Arafat to carry through on his express promise to 
stop the terrorism in exchange for further progress in the peace 
process.
  We must stand firm on the principle of a united Jerusalem. Although 
the Declaration of Principles specifically leaves discussion of the 
final status of Jerusalem for negotiations to begin in 1996, recent 
actions by the PLO in Jerusalem have threatened to undermine the 
delicate formula for negotiations set forth in that document. We must 
oppose any actions which threaten the peace process or undermine 
Israel's sovereignty over Jerusalem.
  Finally, we must press for an end to the Arab League boycott of 
Israel. This most tangible and offensive symbol of war has no place in 
the new environment of peace and negotiation. The boycott, in its 
secondary and tertiary forms, causes significant hardship to United 
States and international companies that wish to do business with 
Israel. This is not only a clear violation of principles of free trade, 
but it is also unjustified and mean-spirited. I call upon my colleagues 
to reaffirm the Congress' disgust for this policy and call for its end 
during the opening of the 49th session of the U.N. General Assembly.
  Mr. Speaker, the benefits of peace are too great to be listed. Even 
the most obvious gains in socio-economic development for Arabs and 
Israelis promised by peace pale in comparison to the opportunity for 
children to grow up free of the ever-present danger of terrorism and 
war. The PLO, Jordan, and Israel all deserve our praise for the great 
leaps forward taken this past year. We should temper our praise, 
however, with caution. The PLO must still prove that it can control the 
extremists in its midst and we must still wait for other hostile states 
to join the process and make the peace a comprehensive one.
  Mr. TAYLOR of North Carolina. Mr. Speaker, I rise to honor the first 
anniversary of the signing of a Declaration of Principles for the 
conclusion of the Israeli-Palestinian conflict between Israeli Prime 
Minister Yitzhak Rabin and Chairman Yasser Arafat of the Palestine 
Liberation Organization. Since that historic event we have seen a slow 
growth in structures of stability and peace in the Middle East.
  Israel has been recognized by 20 nations and Israeli emissaries have 
journeyed to such previously forbidden places as Morocco, Tunisia, 
Oman, and Qatar. Since the signing of the Gaza-Jericho agreement on May 
4, 1994, Israeli security forces have departed the Gaza Strip and 
Jericho and their place has been taken by Palestinian security forces. 
Relations with Jordan have dramatically improved as the two nations in 
July 1994 agreed to end their 46-year state of war, an event marked by 
a joint address to this House by Prime Minister Rabin and King Hussein. 
Syria has become increasingly isolated and as a result is now seeking, 
in a more serious way, discussions on resolving its disputes with 
Israel, particularly the question of the Golan Heights.
  A number of problems remain. Palestinian authorities have not always 
prosecuted individuals accused of terrorist acts with sufficient vigor 
and have shown an unwillingness to take strong actions against Hamas, 
which totally rejects the peace process. Syria, despite its weakened 
influence, has succeeded in holding together the Arab boycott against 
Israel. Iraq, Iran, and Sudan continue to do all they can to disrupt 
the peace process. However, among the nations in the vicinity of 
Israel, there is a new interest in making progress in resolving old 
conflicts.
  In the coming year I hope we can improve the security situation in 
the areas turned over to Palestinian control. Prime Minister Rabin 
recently proposed a partial pullback of Israeli forces on the Golan 
Heights and I hope Syria will respond in a constructive fashion. The 
end of the cold war has removed from the scene the superpower sponsor 
of those in the Arab world who wish to remain intransigent. With this 
disruptive force removed from the scene it has been possible to make 
progress which was unthinkable before. I am hopeful that progress 
toward a stable structure of peace in the Middle East will continue to 
be made in the coming year.
  Mr. SWETT. Mr. Speaker, just over 1 year ago, PLO Chairman Yasser 
Arafat sent a letter to Israeli Prime Minister Yitzhak Rabin stating 
that the PLO recognizes the right of Israel to exist in peace and 
security. Chairman Arafat vowed that the PLO would renounce the use of 
terrorism and would work with Israel toward a peaceful resolution of 
conflicts.
  This historic PLO recognition of the State of Israel led to the 
emotional ceremony on the White House lawn when Chairman Arafat and 
Prime Minister Rabin joined together to sign the Israel-PLO Declaration 
of Principles. In taking this courageous step, Rabin and Arafat brought 
hope to the troubled Middle East region. In the months that have 
followed, Jordan has declared an end to its 46-year state of war with 
Israel and Syria has entered into broad negotiations with Israel.
  As Americans, we have a tremendous national interest in stability in 
the Middle East. It is my hope that a sustainable environment of peace 
and economic cooperation in this region rule out the future necessity 
for U.S. military action in the Middle East, like that our Nation 
undertook in the gulf war.
  The United States must continue to emphasize in words and action our 
unshakable commitment to the one true democracy in the Middle East--the 
State of Israel. Over the years, Israel has proven to be a constant and 
valuable ally. This nation, which was founded almost half a century 
ago, has maintained essential democratic freedom for its people and has 
sought economic opportunity for all its citizens.
  It is gratifying, indeed, to see Arab States ending decades of 
hostility against Israel. Peace should bring greater economic 
cooperation between Arab States and Israel, which should, in turn, 
bring a better quality of life to the people of these Arab nations.
  In order to promote lasting peace in the Middle East, nations must be 
held accountable for the agreements they sign. I have considerable 
concern about the PLO's failure over the last year to adequately comply 
with its pledge to combat terrorism, investigate terrorist incidents, 
and prosecute those who carry out these acts. Terrorism in the Middle 
East and around the world is a threat to all Americans. The United 
States should join with other democratic nations to see that those who 
commit acts of terrorism are identified and prosecuted.
  Mr. Speaker, the United States must also work to end the Arab League 
economic boycott of Israel that continues to be used as a tool of 
economic warfare. The related secondary and tertiary boycotts, which 
act as a barrier to United States exports, have substantially hurt 
American companies that do business with Israel. A continued boycott 
undermines peace efforts and contradicts the principle of free trade. 
Ultimately, the boycott threatens to hurt the citizens of Arab nations 
who so desperately need expanded economic opportunity.
  The United States should withhold most favored nation trade status 
from those countries that participate or cooperate in the Arab League 
economic boycott of Israel. True peace in the Middle East can only be 
established and endure if there is economic cooperation in the region.
  The United States can promote sustained peace and economic vitality 
in the Middle East by supporting those nations that do move forward in 
the peace process. I, along with many of my colleagues, have urged 
President Clinton to expand the United States-Israel Free Trade Area 
Agreement to include countries that reach comprehensive peace 
agreements with Israel.
  Furthermore, the United States must stand by Israel in asserting that 
Jerusalem is the capital of the State of Israel and of the State of 
Israel only.
  In closing, Mr. Speaker, I urge my colleagues to remember this first 
anniversary of the PLO-Israel accord. I strongly support the United 
States' role in fostering peace in the Middle East, and I applaud those 
leaders who have taken bold steps to accomplish peace in this region.

  Mr. GILMAN. Mr. Speaker, I want to take this opportunity to thank 
Representative Berman for arranging today's special order, so that 
Members may acknowledge the anniversary of the signing of the 
Declaration of Principles between Israel and the Palestine Liberation 
Organization. Much has happened since that historic document was signed 
1 year ago, and much remains to be agreed to before one can say that 
peace has been firmly implanted in the region. Despite the 
difficulties, Israel is to be commended for its perseverance and the 
many risks it has taken in an effort to achieve peace in the Middle 
East.
  Since the initiation of the Middle East Peace Talks at the Madrid 
Conference in October 1991, more than 54 countries have established or 
renewed diplomatic relations with the State of Israel. Of those, 20 
have done so since the signing of the Declaration of Principles, most 
recently, Ghana. Israel now maintains diplomatic relations with 146 
countries.
  The signing and implementation of the Declaration of Principles also 
set the stage for an end to the state of war between Israel and the 
Hashemite Kingdom of Jordan, culminating in the watershed Washington 
Declaration, which brought both Prime Minister Rabin and King Hussein 
to this very Chamber. Their heartfelt words were most convincing, and 
an indicator of the peaceful future bilateral cooperation we all 
envision. The swift opening of a border crossing station is just the 
beginning of what we believe will be a most mutually beneficial 
bilateral relationship.
  Yet the Palestinian/Israel track of the peace process is still cause 
for much concern and consternation. Since the signing of the 
Declaration of Principles, over 60 innocent Israelis have died at the 
hands of Palestinian terrorists. The Palestinian police were to 
investigate terror incidents, combat terrorism, and prosecute 
terrorists, but to date, that commitment appears to be rather hollow. 
Illegal weapons remain in the hands of unauthorized individuals 
throughout the autonomous areas, yet the Palestinian police force has 
not confiscated them.
  PLO Chairman Yasir Arafat committed himself to a great deal a year 
ago. Regrettably, he has not lived up to most of his commitments. The 
PLO charter remains in tact, replete with its vitriolic attacks against 
Israel. Arafat also verbally dedicated himself to a ``jihad to liberate 
Jerusalem''. The result is an effort by the Palestinians to expand 
their sphere of influence in Jerusalem, Israel's eternal capital. Such 
belligerence does not advance the peace process, and only serves to 
endanger it.
  Mr. Speaker, 1 year ago we were witnesses to a bizarre, yet historic 
event. One year later I wish to once again commend Prime Minister Rabin 
and the people of Israel for their courage in the face of adversity, 
and for their ongoing dedication to peaceful coexistence.
  Mr. PALLONE. Mr. Speaker, I would like to join my colleagues in 
paying tribute to the historic peace accord that was signed by Israel 
and the PLO 1 year ago today.
  Before that day, few people dared to hope that we would celebrate a 
peace agreement between Israel and the PLO. The image of PLO leader 
Yassir Arafat shaking hands with the Israeli Prime Minister was one few 
thought that they would ever see. Since that day, we have been given a 
reason to believe that a real, lasting peace in the Middle East can be 
achieved.
  During the first year of this new era, the steps toward peace have 
been significant, but have not come easily. We have witnessed the 
beginning of Palestinian self-rule in Gaza. Yet, implementing the 
details of the accord has proven to be a task that requires tremendous 
patience. We have seen the momentum for peace bring an end to the 46-
year state of war between Israel and Jordan. Yet, terrorists greeted 
this occasion with acts of violence against innocent people on three 
continents. This year has brought new hope for Israeli-Syrian peace. 
Yet, progress has been slow and we still do not have an agreement.
  In spite of the difficulties that we have seen this year, we have 
been assured that the course we are on toward peace is certain and 
sure. The acts of terrorism and tragic killings that have plagued the 
process have not curbed the resolve of those who want peace. We will 
see that those who oppose peace will not be able to frustrate the 
process.
  There is much that we can do here to encourage the peace process. We 
must continue to provide aid to Israel and ensure its security as the 
process continues. We must continue to condemn terrorism and ensure 
that no nation gives support to terrorists who seek a return to the 
days before peace. We must continue to work toward bringing an end to 
the Arab boycott and help Israel and its neighbors to become economic 
partners as well as partners in peace.
  On the second anniversary of the peace accord I hope to come before 
this body and talk with pride about a smooth transition on the 
Palestinian tract, a peace agreement with Syria, and an end to 
terrorism in the region. I am committed to United States support of the 
peace process and will continue to help Israel and its neighbors 
achieve peace.
  Mr. WAXMAN. Mr. Speaker, 1 year ago last week, Israeli Prime Minister 
Yitzhak Rabin and PLO Chairman Yasser Arafat signed the historic 
Declaration of Principles [DOP] on the White House lawn, thereby 
creating the foundation for peace in the Middle East. Since that time, 
the PLO and Israel have moved forward in their peace negotiations, and 
Jordan has become the second Middle Eastern country to end its state of 
war with Israel and move towards a peace agreement.
  I want to praise President Clinton, Israeli Prime Minister Yitzhak 
Rabin, and Foreign Minister Shimon Peres for their visionary efforts to 
extend the PLO-Israeli agreement to other countries in the Middle East. 
We have made real progress, but only when all countries in the Middle 
East end their economic and political boycott of Israel, will the 
Middle East see a real, comprehensive peace.
  Mr. Speaker, I hope 1 year from now we will have reached that real, 
comprehensive peace, and I again commend all who have brought us so 
far, so quickly.
  Ms. MARGOLIES-MEZVINSKY. Mr. Speaker, while the country's and the 
media's attention remains focused on the United States' Military 
presence in the Caribbean, I would like to take a moment to remind the 
Nation that this week marks the 1-year anniversary of the signing of 
the Declaration of Principles. This contract between the PLO and Israel 
promises a new era of hope in the Middle East. Since last September, we 
have witnessed momentous progress, yet we recognize the long road 
ahead. As we embark on a second year of negotiations, it is imperative 
that both parties maintain their commitment to peace in compliance with 
the Declaration of Principles.
  Since the September signing, Israel has withdrawn from the Gaza Strip 
and Jericho in accordance with the spirit of the Declaration of 
Principles. The Israeli Government and Palestinian Authority are moving 
towards the transfer of power throughout the West Bank. This 
unparalleled cooperation between former enemies provided the impetus 
for a long-awaited peace between Israel and Jordan.
  The transition from hope to reality must be closely watched and 
guided as fundamental problems continue to threaten the negotiations. 
The Palestinian Authority has not done enough to stop terrorist 
factions like Hamas in the self-rule areas. Furthermore, the Arab 
League continues to boycott Israel and the companies that do business 
with her, serving as one of the last vestiges of the age of conflict in 
the region.
  As negotiations proceed, it is paramount that we maintain our 
commitment to a united Jerusalem as the eternal capital of Israel. Any 
premature Palestinian discussion on the ultimate status of Jerusalem, 
as evidenced in Arafat's recent call for a ``jihad to liberate 
Jerusalem,'' will not be tolerated.
  My blessings and best wishes go out to those who helped make the 
signing of the Declaration of Principles 1 year ago a reality. I also 
commend the continued discourse between the Palestinian and Israeli 
people which seeks to fortify the road to peace. The anniversary of 
this milestone appropriately falls at the time of the Jewish New Year. 
As we embark on the Jewish year 5755, I look forward to a year filled 
with unprecedented progress leading us to our ultimate goal of peaceful 
coexistence.
  Mr. BORSKI. Mr. Speaker, I rise today to commemorate the 1 year 
anniversary of the Declaration of Principles between Israel and the 
Palestinian Liberation Organization [PLO].
  As you know, Mr. Speaker, on September 13, 1993, Israeli Prime 
Minister Yitzhak Rabin and PLO Chairman Yasser Arafat made history when 
they shook hands on the White House lawn and signed the Declaration of 
Principles. This dramatic day opened a new era of courage and 
cooperation in the Middle East.
  One year later, Israel and the PLO have worked successfully to 
implement the Declaration of Principles, despite repeated attempts by 
extremists to derail the peace process. However, many challenges lie 
ahead between Israel and the PLO, and between Israel and her Arab 
neighbors. For this reason, it is more important than ever that the 
United States demonstrate its support for the peace process and those 
who are taking the risks to make it succeed.
  A great deal has happened since that historic handshake last year. On 
May 4, Israel and the PLO signed a detailed agreement on self-rule in 
the Gaza Strip and Jericho. On May 18, Israel completed its withdrawal 
from the two areas. Soon after, the Palestinian police force assumed 
responsibility for these areas and a new Palestinian Authority was 
established to administer Palestinian self-government. On August 29, 
both parties agreed to transfer to the Palestinians the administration 
of education, tourism, taxation, health, and culture and social welfare 
in the rest of the West Bank.
  In addition, on July 25, Prime Minister Rabin and Jordan's King 
Hussein signed the Washington Declaration to end Jordan's state of war 
with Israel and begin the normalization of relations between the two 
countries. Both countries also agreed to open borders, establish 
telephone links, and cooperate on crime prevention.
  Despite the success and dramatic pace of peace implementation, there 
have been some setbacks. The PLO has fallen short on its pledge to 
combat terrorism in the self-rule areas and to investigate and 
prosecute those suspected of terrorist acts. Chairman Arafat has also 
made statements claiming PLO sovereignty over Jerusalem--even though he 
agreed in the Declaration of Principles that its status would not be 
discussed until 1996. Without the PLO's compliance to prevent the 
derailment of the peace process, the implementation of these agreements 
will be significantly difficult to achieve.
  Mr. Speaker, some have suggested that peace has been achieved in the 
Middle East, and that our foreign aid to Israel is therefore no longer 
needed to maintain security and stability in the region. I believe that 
now more than ever our foreign aid--and our support for those who seek 
peace--is critical to keep the peace process moving forward. The 
Declaration of Principles represents a first step toward lasting peace. 
But the road ahead will be long and difficult.
  While we have many challenges ahead, we must not lose sight of what 
has been done to achieve the historic breakthrough of September 13, 
1993. Few believed we would ever reach this stage in the Middle East. I 
hope and believe the same breakthrough will be achieved between Israel 
and her Arab neighbors.
  Mr. ZIMMER. Mr. Speaker, I want to thank my colleague, Mr. Berman, 
for arranging this special order today.
  The signing of the Declaration of Principles on September 13, 1993, 
by Israel and the Palestine Liberation Organization was a historic 
occasion in Israeli-Palestinian relations and in the long quest for 
peace in the Middle East.
  Since that signing, significant developments have occurred. On May 4, 
Israel and the PLO signed an agreement detailing Palestinian self-rule 
in the Gaza Strip and Jericho. On May 18, Israel completed its 
withdrawal from those areas and the Palestinian police force assumed 
responsibility for guaranteeing internal security and controlling 
terrorism there. Yasir Arafat then moved to Gaza and established the 
Palestinian Authority, the civil entity charged with Palestinian self-
government. And on August 29, Israel and the PLO signed an agreement 
outlining the transfer of authority in areas such as education, 
tourism, taxation, health, and culture to the Palestinians in the rest 
of the West Bank.
  Last year's Israel-PLO accord also set the stage for another historic 
milestone: On July 25, Jordan ended its 46-year state of war with 
Israel when the two countries signed the Washington Declaration here. 
That document has laid the foundation for normalization of relations 
between Israel and Jordan.
  Mr. Speaker, these developments are significant and promising. But 
even as we recognize them today, we should be deeply mindful that the 
peace process that began with the 1993 accord remains fraught with 
peril.
  For true peace to be created, the terrorism of Arab extremists must 
come to an end. The PLO formally pledged to fight terrorism in the 
self-rule areas and to prosecute those who perpetrate it. But that 
pledge has not been honored.
  For true peace to be created, the Palestinian Covenant must be 
amended to recognize Israel's right to exist. That is fundamental. 
Yasir Arafat repeatedly has promised to convene the Palestine National 
Council so this change can be made. But that promise has not been 
fulfilled.
  For true peace to be created, the Arab League also must end what 
remains the most tangible symbol of war against Israel--the illegal 
trade boycott against Israel. The boycott must be lifted, but it has 
not been.
  For true peace to be created, the United States must remain steadfast 
in its support for Israel, politically, economically, and militarily. 
Israel's enemies finally agreed to negotiate peace with Israel only 
because they were convinced that violence would be unavailing. If we 
waver in our support for Israel, or pressure this ally to make 
concessions that imperil its security, we could kill the peace process.
  Mr. Speaker, I commend the efforts that have been made in pursuit of 
peace in the Middle East. I strongly support those who have worked 
tirelessly to achieve peace. And I continue to pray that the 
commitments that have been made will be honored so that true peace can 
finally be realized.
  Mr. HAMILTON. Mr. Speaker, the awkward handshake on the White House 
lawn between Israeli Prime Minister Rabin and PLO Chairman Arafat 1 
year ago has not only endured--it has prevailed. A psychology of peace 
in the Middle East is slowly replacing a mindset of war. Israel is 
becoming an accepted part of the landscape; Israelis and Arabs are 
becoming partners.
  Events unimaginable prior to the September 1993 Israeli-PLO 
Declaration of Principles are now taking place daily in the Middle 
East. Consider the following:
  For the first time in their history, Palestinians are governing their 
own affairs. Palestinian police patrol the streets in Jericho and Gaza, 
where half of all residents in the territories live. The powers of a 
Palestinian authority are now expanding to include health, education, 
welfare, taxation, and tourism throughout the West Bank and Gaza. 
Children in the territories began the new school year in an entirely 
Palestinian-run education system.
  Despite continuing incidents, including acts of terrorism abroad, 
overall security for Israelis and Palestinians is improving in Israel 
and the territories. Immediately following the withdrawal of the Israel 
Defense Forces from Gaza and Jericho last May, the number of terrorist 
attacks against Israelis declined 75 percent. Palestinians in Gaza and 
Jericho are free from confrontations with Israeli troops.
  Jordan and Israel have achieved their own remarkable breakthrough, 
also marked by public reconciliation on the White House Lawn The two 
parties talk of partnership and business deals. A new border crossing 
between Aqaba and Eilat has opened, and joint economic and 
environmental projects are underway. Negotiators are pushing ahead on 
an overall Israeli-Jordanian peace treaty.
  With little public fanfare, Arabs and Israelis are engaged in genuine 
problem-solving discussions on a whole range of issues affecting the 
region: economic development, water resources, the environment, 
refugees, and arms control. Israeli delegations have attended talks in 
countries previously closed to them--including Oman, Qatar, and 
Tunisa--evidence in itself of a new pattern of regional cooperation.
  The peace process has enhanced Israel's international stature and 
legitimacy. Since last September, an additional 21 states have 
established diplomatic relations with Israel, including, most recently, 
Morocco.
  The historic events are possible because the Israeli leaders like 
Yitzhak Rabin and Shimon Peres, and Arab leaders like Yasser Arafat, 
Jordan's King Hussein, and Morocco's King Hassan, have displayed the 
courage and vision necessary to break with a decades-long cycle of 
conflict.
  The Clinton administration also has been wise in its energetic 
pursuit of a comprehensive peace in the Middle East. War in the Middle 
East is always possible, but each step toward peace makes it more 
remote. Peace pays its own dividend, and the investment of considerable 
time, resources, and diplomatic prestige remains in the U.S. national 
interest.
  The job is, of course, unfinished. Continued United States 
involvement, and a renewed commitment to peace from both Israelis and 
Arabs is needed to meet the challenges ahead:
  Syria and Israel need to begin serious bargaining on a peace treaty 
that includes normalized relations, Israeli withdrawal from the Golan 
Heights, and extensive security guarantees. Here the U.S. role is still 
central; as Secretary Christopher has demonstrated, the United States 
is the party that makes these talks happen, but it is up to the parties 
themselves, in direct talks, to take the toughest steps.
  Israel and the Palestinians must work quickly to reach agreement on 
the expansion of Palestinian autonomy, the redeployment of Israeli 
troops throughout the West Bank, and the convening of Palestinian 
elections. Only then can they move on to the difficult final status 
issues of Jerusalem, refugees, and settlements.
  The Palestinian Authority, and Chairman Arafat, must demonstrate that 
they can make the transition from revolution to governance. Security is 
the first key test. The Palestinian Authority must take all necessary 
steps to stop terrorism, and reassure the Israeli public of its 
commitment to prevent further violence. Israel, for its part must do 
more to reduce tensions between Palestinians and Israeli troops and to 
prevent settler violence.
  Finally, members of the international community must make good on 
their pledges of assistance to the Palestinians in order to improve 
economic conditions in the West Bank and Gaza. They must also focus on 
assisting the Palestinians in building a democratic civil society, and 
conducting free and fair municipal elections and elections for a 
Palestinian self-governing council.
  One year ago, Israeli and Palestinian leaders declared their 
intention to put aside decades of conflict and build a new future. The 
progress achieved since then means it is no longer fanciful to think of 
the Middle East at peace. A vision of the region's future can 
realistically include lasting peace, growing commerce, and emerging 
democracies.
  Even through Arabs and Israelis are now talking face to face, the 
United States role remains crucial. American leadership is still needed 
to help sustain momentum toward peace. It will be needed to break 
deadlocks that no doubt occur. Good things are happening today in the 
Middle East, but if peace talks do not continue to move forward, they 
will move backward. With continued courage from Arab and Israeli 
leaders, strong American leadership, and the help of other nations, the 
Middle East can move closer in the next year to the elusive goal of a 
comprehensive peace.

  Mr. KING. Mr. Speaker, I am proud to join with my colleagues today in 
making the 1 year anniversary of the signing of the Declaration of 
Principles by Israel and the Palestine Liberation Organization [PLO]. 
This historic step launched a year of dramatic development in the peace 
process in the Middle East.
  The courageous commitment to peace made by both the Israelis and the 
Palestinians deserves the full support of the United States Government 
and the American people. The important steps taken by Prime Minister 
Yitzhak Rabin and Chairman Yassir Arafat last year, have set this long-
troubled region on the road toward peace, self-determination, and 
security for all nations. Blessed indeed are the peacemakers.
  Unfortunately, some problems remain in the Middle East that continue 
to threaten the road toward peace. As a member of the Congressional 
Peace Accord Monitoring Group, I am committed to do my utmost to help 
remove these stumbling blocks to peace.
  Peace between Israel and Syria must be given top priority. Such an 
agreement is vital to further progress toward peace for all of the 
Middle East. However, the brutal dictator in Damascus will have to 
renounce his support for terrorism and recognize Israel's security 
needs.
  The most tangible symbol of war against Israel that still clouds the 
horizon is the Arab League boycott. This illegal embargo hurts not only 
Israel but the entire international system of free trade as well. There 
can be no final peace while the Arab League boycott remains in effect.
  While we have come a long way toward peace in the past year, it is 
clear that hurdles remain to be cleared. The United States has an 
obligation to help smooth the way toward a just, lasting, and secure 
peace in the Middle East. I will continue to do all that I can to 
further this peace process.
  Mr. Speaker, I yield to the gentleman from New York [Mr. Hinchey].


                 federal reserve interest rate policies

  Mr. HINCHEY. Mr. Speaker, I thank the gentleman for yielding to me.
  Mr. Speaker, I rise today to discuss an important subject that is on 
the minds of people throughout my district and the entire country: The 
Federal Reserve's interest rate policies that undermine economic 
recovery and keep millions of people out of work. The question that 
must be addressed is why the Federal Reserve has increased interest 
rates by over 50 percent since February despite the fact that there are 
few signs of inflation in the present, or in the future. I come to the 
House floor today to call on the Federal Reserve Board to end this 
ongoing crusade that foils economic progress and threatens the 
livelihood of the American people. The fact is that the economy is not 
overheating and millions upon millions of Americans remain out of work. 
Mr. Speaker, the American people cannot bear any further rate hikes 
until there is some evidence of inflation in the economy.
  The current indicators lead any sensible person to believe that 
inflation is not a destabilizing force in the economy. Through the 
first 8 months of 1994, inflation is running at an annual rate of less 
than 3 percent. This remains a historically low rate by any standard, 
and it is unchanged from the record low levels we have seen over the 
past 3 years. Exclude the volatility in the prices of gasoline and 
coffee products during the summer, and the inflation rate becomes even 
lower. This may explain why Sung Won Sohn, chief economist at Norwest 
Corp., recently stated that, ``We should settle down and worry less. 
The inflation picture really hasn't changed that much.''
  I believe this is a fair and accurate statement. Even Chairman 
Greenspan has acknowledged that the inflation picture hasn't changed 
much this year. A few months ago, I joined Chairman Obey and over 50 of 
my colleagues to request Federal Reserve Chairman Alan Greenspan to 
explain the basis for the Fed's interest rate increases that have 
proven so destructive to our economy. In his response to our request, 
Mr. Greenspan stated, ``There currently are few indications that 
inflation has already begun to pick up. But our concerns are for the 
future.'' As we approach the end of September--over 4 months and two 
more rate increases since Mr. Greenspan's reply--there are still no 
signs of inflation in the present, and little evidence it will emerge 
in the future.
  Wages remain stagnant, business inventories have risen, unemployment 
has increased, and much of the job growth we have seen is limited to 
part-time, temporary positions. Despite these indications, it is 
rumored that the Fed will again hike rates at the monetary policy 
meeting next week because it has been spooked by the ghost of 
inflation. I urge them to refrain from such action, because our fragile 
economy may be jolted back into a downturn by further escalation of 
interest rates. In the words of National Association of Manufacturers 
president, Jerry Jasinowski, ``One more rate increase by the Federal 
Reserve will drive the economy into the ditch, bringing on a 
recession.''
  Currently, over 8 million Americans are looking for work. Hundreds of 
thousands more are too discouraged by the economy to enter the labor 
market. And corporate America continues to lay off people by the 
thousands. Additionally, the Blue Chip Economic Indicators September 
survey found that forecasters have become increasingly pessimistic 
about growth in each of the last 3 months and now estimate that the 
economy is expanding at about a 2 percent annual rate. In my district, 
for example, the unemployment rate approaches 10 percent as more people 
become victims of corporate downsizing and seasonal employment 
subsides. These are hardly signs of an economy that is in danger of 
overheating.

  The Federal Reserve's actions threaten many more people with 
unemployment, and that's a situation that I find intolerable. The Fed 
is clearly oversimplifying the way it looks at the economy. They see 
any signs of job growth as a reason for concern. There seems to be the 
belief at the Fed that as the national employment rate reaches 6 
percent, inflation must necessarily result. This is a notion that I 
don't agree with, and I know that more than 8 million Americans will 
continue to suffer until this notion is corrected.
  The Fed's disregard for unemployed Americans is contrary to the 
requirements of several existing Federal laws. The Federal Reserve Act 
explicitly states that the Board of Governors of the Federal Reserve 
System and the Fed committee that sets interest Rates shall--and I 
quote, ``promote effectively the goals of maximum employment, stable 
prices, and moderate long-term interest rates.'' It is important to 
note that maximum employment is mentioned as the first goal of the 
Federal Reserve. I believe that this was done for good reason. In 
addition, the historic Employment Act of 1946 states:

       It is the continuing policy and responsibility of the 
     Federal Government to use all practicable means * * * to 
     coordinate and utilize all its plans, functions, and 
     resources * * * to promote maximum employment, production, 
     and purchasing power.

  The Fed, albeit an independent Federal agency, falls under the 
purview of this law as well. In my view, However, they have failed to 
carry out the intent of both the Full Employment Act and the Federal 
Reserve Act and this cannot continue.
  The disregard for the needs of middle-class Americans is further 
highlighted by Chairman Greenspan's recent endorsement of legislation 
to limit the mission of the Federal Reserve Board to fighting 
inflation. During testimony he delivered before the Banking 
Subcommittee on Economic Growth this year, Mr. Greenspan stated that 
there is no downside to limiting the Federal Reserve's mission to price 
stability and thereby ignoring the maximum employment mandate. I would 
call attention, however, to the fact that the impact of this change 
would prove terribly destructive to the middle class in our country. 
Almost every economist--including Mr. Greenspan--agrees that monetary 
policy changes directly affect national employment levels. Newly 
appointed Vice Chairman Alan Blinder, who shows signs he is sensitive 
to the impact of the Fed's policies on middle-class people, stated 
during a recent conference that the central bank ``should have a short-
run employment objective in addition to its inflation objective.'' This 
statement has caused waves within the closed walls of the Federal 
Reserve and throughout the banking community. But it shouldn't. This 
employment objective is part of the law that establishes the Federal 
Reserve.

  As Blinder remarked in a follow-up statement, ``I don't think it is 
controversial for the Vice Chairman of the Federal Reserve to endorse 
the Federal Reserve Act.'' Mr. Blinder's colleagues at the Fed would do 
well to consider these carefully chosen words.
  The continuing insensitivity to the needs of middle-class Americans 
provides further grounds for reforming the Fed to instill some 
accountability to the American people. The idea of a sacred priesthood 
in the Federal Reserve where no one can see what's going on is 
outdated. I think it's time for the American people to understand 
what's going on with the Federal Reserve and the impact its decisions 
have on the economy of the Nation. When the Fed raises interest rates, 
it is essentially taxing the American people by increasing mortgage 
payments, credit card payments, and the cost of credit. Yet there is no 
accountability to the people, and the Fed's decisions remain closed to 
the public. This is surely taxation without representation.

  Former Presidential candidate Michael Dukakis spoke to the core of 
the issue during a recent speech at the Jerome Levy Economics Institute 
when he called the Fed's operations ``profoundly undemocratic.''
  It is time that this body enact the Federal Reserve System 
Accountability Act introduced by Banking Committee chairman Henry B. 
Gonzalez. Chairman Gonzalez was awarded the John F. Kennedy Profiles in 
Courage Award this year because he has the fortitude to stand up for 
what's right for the American people. The Fed Accountability Act is 
right for the American people. It proposes several sensible reforms to 
help democratize the Federal Reserve System. Most importantly, it 
allows the President of the United States rather than local bankers to 
nominate the 12 regional bank presidents who help shape our Nation's 
interest rate policies. The present nomination process flies in the 
face of fundamental democratic principles, as there is an inherent 
conflict of interest in allowing bankers not only to control this 
country's money supply but also to oversee the regulation of their own 
institutions. Equally disturbing is the fact that a substantial 
proportion of the banks directing this process are foreign-owned, thus 
subjecting our country's monetary policy decisions to input from beyond 
our Nation's shores. Chairman Gonzalez's bill would prohibit any member 
of the Board of Directors of regional Federal Reserve banks from being 
employed by foreign banks in order to protect U.S. sovereignty in 
monetary policy.
  The Fed Accountability Act takes many other important steps to create 
greater openness at the secret temple of the Federal Reserve. It 
requires that transcripts and videotapes of meetings of the Fed's 
interest rate setting committee to be released to the public more 
quickly. It was recently revealed that this committee already takes 
verbatim minutes of all of its meetings. This legislation simply 
reduces the waiting period for release from 5 years to 60 days. The 
bill also opens up the Fed's operations to allow the General Accounting 
Office to perform more comprehensive audits. The GAO greatly improves 
the operations of Federal agencies, and I see no reason why the Fed 
should receive a special exemption. The Federal Reserve System 
Accountability Act will require the Fed to stay more in touch with the 
needs of ordinary people, and I urge its enactment as soon as possible.

  Mr. Speaker, I want to conclude by reading excerpts from a recent 
letter sent to me by my constituent Francine Heinlein that summarizes 
what many people in this country are feeling about the Federal Reserve:

       I am writing to you because you are the representative for 
     us and you are on the Banking Committee. We must do something 
     to stop--the Federal Reserve--from raising interest rates and 
     effectively putting a dead halt to my business. This time 
     raising interest rates has affected me personally as well as 
     in my business.
       First of all, the Hudson Valley in New York State, is still 
     suffering from unemployment from major cutbacks in several 
     large employers. We have a huge exodus from New York State. I 
     am a one-person small-operation real estate company. Seventy-
     five percent of the people I deal with have been affected by 
     a job displacement of some kind. Now enter Mr. Greenspan. 
     Interest rates go up and potential business for me goes down. 
     Prospective buyers are squeezed out of the market.
       But let me get back to how it personally affected me and my 
     husband. We had intended to cash out of an investment and buy 
     an apartment for income for our retirement. This is not 
     possible anymore because now I don't have enough down payment 
     for the purchase. Do you see how this stops the economy? 
     These--increases--in interest rates do more harm than good. 
     Our struggling economy is still too fragile and weak. Now, we 
     are just living day by day * * * and I think we are not 
     alone.
       Sincerely, Francine Heinlein, Saugerties, NY.

  When the Fed committee meets next Tuesday to consider interest rate 
changes, for the sake of Francine Heinlein and thousands of other 
residents in the 26th District who have not experienced economic 
recovery, I urge the Fed in the strongest possible terms to hold the 
line on interest rates.

                          ____________________