[Congressional Record Volume 141, Number 15 (Wednesday, January 25, 1995)]
[Senate]
[Pages S1539-S1542]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BAUCUS:
  S. 274. A bill entitled the ``Old Faithful Protection Act of 1995''; 
to the Committee on Energy and Natural Resources.


                    THE OLD FAITHFUL PROTECTION ACT

  Mr. BAUCUS. Mr. President, Americans first heard about Yellowstone 
National Park back in the 1850's, from an old mountain man by the name 
of Jim Bridger.
  Bridger told about a place where water ran so quickly it heated the 
stream bed through friction. He said steam rose up from the edges.
  He told folks about how you could cook a trout without taking it off 
the line--just catch the fish in the Firehole River and swing it into 
one of the steam cauldrons on the bank.
  Folks back then were a little hard pressed to believe Jim Bridger. 
But when they saw it for themselves, they were convinced. President 
Ulysses S. Grant made it our first national park on March 1, 1872.
  Today, millions of Americans have visited Yellowstone to see the 
geysers and mudpots and hot springs that make this a unique place. And 
I think we all want to make sure we keep it forever.
  That is why today, I am introducing the Old Faithful Protection Act 
of 1995. This legislation guarantees that Yellowstone--our Nation's 
first national park--will remain the marvel that it was, is, and should 
always be.
  Why am I doing this? Because while Jim Bridger was a great man, he 
was no geologist. Yellowstone has geysers, paint pots, and steam 
cauldrons not because of fast-running streams, but because of the 
geothermal characteristics of the underlying rock formations.
  These structures are fragile. In the past, some have been tempted to 
tap into them for energy. And when that has happened elsewhere the 
geysers have vanished.
  A 1991 National Park Service report found that geothermal development 
has dried up 7 of the world's 10 major geyser systems. Systems have 
disappeared in China, Russia, Chile, and Iceland. Next door in Nevada, 
30 geysers were active as recently as 1958. Extensive geothermal 
development has dried them all up. They are gone forever.
  The same thing could happen in Yellowstone. And as the Park Service 
report concludes, ``any risk, no matter how small, to Yellowstone's 
geothernal resource is too much risk.''
  The Old Faithful Protection Act guarantees complete protection to 
Yellowstone's world famous geysers, paint pots, mud volcanoes, and hot 
springs.
  It forbids geothermal development on Federal lands within 
approximately 15 miles of Yellowstone's boundaries.
  It lets Montana, Idaho, and Wyoming regulate geothermal development 
on State and private lands within this 15-mile buffer zone provided 
that each State develops a regulatory program that adequately protects 
Yellowstone.
  In summary, the Old Faithful Protection Act makes sure that 
Yellowstone is protected, private property rights are respected, and 
the appropriate role of the States in managing the water resource is 
recognized.
  We owe it to future generations to preserve Yellowstone so that they 
can see the same wondrous sights that Jim Bridger saw 140 years ago.
  And we owe it to the many people whose jobs depend on Yellowstone--
guides, small businesses, nearby hotels and more--to keep their 
livelihood safe.
  And I want to put my colleagues on notice about this bill. Last 
Congress, my friend and colleague Congressman Pat Williams brought this 
through the House on an overwhelming vote.
  Unfortunately, it was held up here in the Senate. I will not let that 
happen again. I have written to the chairman of the Energy and Natural 
Resources Committee, asking for an immediate hearing and rapid action 
on the bill. And if that does not happen, I will 
[[Page S1540]] bring this bill to the floor at every opportunity, 
because I believe Yellowstone is that important to me and to Montana.
  As Teddy Roosevelt said 90 years ago:

       There can be nothing in the world more beautiful than the 
     Yosemite, the groves of giant sequoias and redwoods, the 
     Canyon of the Colorado, the Yellowstone * * * and our people 
     should see to it that they are preserved for their children 
     and their children's children forever, with their majestic 
     beauty all unmarred.

  Yellowstone compares with Yosemite National Park, one of Teddy 
Roosevelt's favorites.
  Mr. President, no risk to the park is too small to ignore. I consider 
this bill a top priority. And I urge my colleagues to give it their 
strong support.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                 Washington, DC, January 25, 1995.
     Hon. Frank H. Murkowski,
     Chairman, Committee on Energy and Natural Resources, Dirksen 
         Senate Office Building, Washington, DC.
       Dear Mr. Chairman: Today I am introducing the ``Old 
     Faithful Protection Act of 1995.'' This legislation is 
     intended to protect the hydrothermal systems associated with 
     Yellowstone National Park, an objective I have long been a 
     strong advocate of. I have gone to great lengths to tailor 
     this legislation so that it protects Yellowstone, while 
     respecting private property rights and the important role of 
     states in managing their water.
       The importance of this legislation to maintaining the 
     integrity of Yellowstone National Park cannot be understated. 
     It is my intention to do everything I can to see this bill to 
     final passage during this Congress, and I would very much 
     appreciate your assistance. Toward that end, I ask that you 
     hold a hearing on this legislation at as early a date as 
     possible.
       I look forward to hearing from you in the near future on 
     this matter.
       With best personal regards, I am
           Sincerely,
     Max Baucus.
                                                                    ____



                                                  U.S. Senate,

                                 Washington, DC, January 25, 1995.
     Hon. J. Bennett Johnston,
     Committee on Energy and Natural Resources, Washington, DC.
       Dear Mr. Bennett: Today I am introducing the ``Old Faithful 
     Protection Act of 1995.'' This legislation is intended to 
     protect the hydrothermal systems associated with Yellowstone 
     National Park, an objective I have long been a strong 
     advocate of. I have gone to great lengths to tailor this 
     legislation so that it protects Yellowstone, while respecting 
     private property rights and the important role of states in 
     managing their water.
       The importance of this legislation to maintaining the 
     integrity of Yellowstone National Park cannot be understated. 
     It is my intention to do everything I can to see this bill to 
     final passage during this Congress, and I would very much 
     appreciate your assistance. Toward that end, I ask that you 
     hold a hearing on this legislation at as early a date as 
     possible.
       I look forward to hearing from you in the near future on 
     this matter.
       With best personal regards, I am
           Sincerely,
                                                       Max Baucus.
                                 ______

      By Mr. D'AMATO:
  S. 276. A bill to provide for criminal penalties for defrauding 
financial institutions carrying out programs under the Small Business 
Act and the Small Business Investment Act of 1958, and for other 
purposes; to the Committee on the Judiciary.


        the small business financial institution protection act

 Mr. D'AMATO. Mr. President, I introduce legislation to address 
the problem of bank fraud that is being perpetuated against the U.S. 
Small Business Administration [SBA]. The SBA besides specializing in 
small business loans also gets heavily involved in loans for disaster 
relief areas. Currently there are over 5,000 loans in default with the 
SBA. These defaulted loans represent a loss over $1.8 billion to the 
SBA and the financial institutions that processed the loans. Since 
1990, the SBA has repurchased in excess of $878 million of these 
defaulted loans yielding a direct loss to the U.S. Government. The 
remaining $300 million lost in this process was incurred by the 
federally insured financial institutions that processed the loans. The 
SBA guidelines for approving loans are adopted by the financial 
institution, these guidelines are clearly deficient. The background 
investigation and financial checks for SBA loan approval are basically 
nonexistent. The amount of fraud associated with SBA loans is 
extraordinary.
  In addition to the internal loan approval problems present in the 
SBA, there are several problematic areas within the prosecution of 
these violations. Currently SBA violations are prosecuted under title 
18 USC, section 1001 (False Statements) and section 287 (False, 
fictitious or fraudulent claims). Both of these sections are merely 5-
year counts. The U.S. Attorney's offices nationwide, due to the large 
caseload, have to prioritize their prosecutions. Five-year violations 
are usually declined due to lack of prosecutive merit. Furthermore, 
this meager judicial penalty allows for these violations to be cost 
effective for the defendants. Most of the SBA defaulted loans are over 
$100,000. These violations rarely result in prison terms, therefore 
crime truly does pay.
  The second problematic area within the prosecution of these 
violations is that neither of these sections have asset forfeiture 
provisions. Therefore, the SBA must make a business decision to 
prosecute or proceed civilly.
  My legislation will address all these issues. First, by incorporating 
SBA violations under title 18 USC, section 1344--(Bank Fraud) 
prosecutive thresholds will be met in virtually all U.S. attorney's 
offices. Second, this section will raise the penalties associated with 
these violations. This in effect will send the message out that we will 
not tolerate abuses against our financial systems of the U.S. 
Government. The current penalties for violation of section 1344 impose 
a fine of not more than $1 million or imprisonment of not more than 30 
years, or both. This increased exposure tells would-be defendants that 
crime does not pay. And lastly, section 1344 has asset forfeiture 
provisions. This allows both for the return of the illegally gained 
proceeds to the Government and the victim financial institutions and 
for the prosecution of those involved. As is clearly demonstrated by 
the above figures, SBA fraud is already a form of bank fraud in that 
federally insured financial institutions share in the losses when SBA 
loans are defaulted. The recent indictment in Los Angeles of 16 
defendants, highlights the necessity for this change. These defendants 
were responsible for approximately $10 million in losses. Just in my 
State alone during the last 4 years over $20 million in losses were 
incurred by defaulted SBA loans.
  Mr. President, I ask unanimous consent that the text of my bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 276

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Financial 
     Institution Protection Act''.

     SEC. 2. CRIMINAL PENALTIES.

       Section 1344 of title 18, United States Code, is amended--
       (1) in paragraph (1), by inserting ``or the Small Business 
     Administration'' after ``financial institution''; and
       (2) in paragraph (2), by inserting ``or the Small Business 
     Administration'' after ``financial institution,''.
                                 ______

      By Mr. D'AMATO:
  S. 277. A bill to impose comprehensive economic sanctions against 
Iran; to the Committee on Banking, Housing, and Urban Affairs.


              the comprehensive iran sanctions act of 1995

 Mr. D'AMATO. Mr. President, I introduce the Comprehensive Iran 
Sanctions Act of 1995. This act will institute a total trade embargo 
between the United States and the Islamic Republic of Iran. This 
embargo will also include a prohibition on all trade engaged in by a 
U.S. national abroad, but exempt all humanitarian supplies.
  This legislation is modeled after a provision in the Cuban Democracy 
Act, and forbids any United States-owned foreign subsidiary from doing 
business with Iran. Moreover, it will end the ability of United States 
oil companies to buy Iranian oil and then resell it on the open market. 
We must stop subsidizing Iranian terrorism. Our purchase of Iranian oil 
does just that. In 1993, oil purchases by United States companies of 
Iranian crude oil bought and resold 
[[Page S1541]] in foreign markets amounted to $3.5 billion, or 25 
percent of all Iranian crude oil sales.
  United States companies supply annually over $750 million in exports 
to Iran. In the first 6 months after the imposition of the sanctions in 
October 1992, $461 million in exports to Iran required G-DEST or 
General Destination licenses. Companies using G-DEST licenses do not 
submit individual license applications, thereby removing the State and 
Defense Departments from the review process. This process makes it 
easier to slip dual-use material through the oversight process and for 
Iran to continue receiving exports that it can convert for use in its 
military and nuclear program. This is exactly what Iraq did during the 
1980's and we allowed it to happen. We cannot allow the same mistake to 
be repeated.
  Iran is arming itself to the teeth, and we are simply ignoring it. 
Iran conducted a $12 billion shopping spree for arms in 1990, and is 
stockpiling Chinese and North Korean Scud missiles. In 1991, Iran 
purchased Chinese nuclear technology and a nuclear reactor. This, in 
addition to its ongoing receipt of U.S. dual-use exports, portends a 
very dangerous situation.
  Iran set forth 2 years ago, an arms budget estimated at over $50 
billion for the following 5 years. This should make it clear to all 
that Iran aims to build itself into a regional nuclear power intent on 
spreading its will by force. We cannot sit back and allow this 
bloodthirsty band of terrorists to grow into a monster too big for 
anyone to handle.
  Moreover, Iran's territorial expansion into North Africa and Central 
Asia is seemingly being ignored. Iranian-supported terrorists are 
active in Algeria, Tunisia, Morocco, Egypt, Yemen, and in Israel. Iran 
is also making serious efforts at spreading its influence into 
Afghanistan and Tajikistan. While this may seem tangential, Iran's 
spreading influence is indicative of a wider, more dangerous effort, 
designed to build an anti-American bloc. This much has even been 
alleged, regarding suggestions of some Sudanese role in the bombing of 
the World Trade Center.
  Iran's actions, speak louder than words and its continued effort at 
obtaining weapons of mass destruction, as well as its pursuit of an 
Islamic fundamentalist, anti-American bloc, speak volumes about its 
intent in the world today.
  With Iran's goals in mind, the United States should not be providing 
it with the capabilities to build such weapons to fulfill its aims. 
Unfortunately, the Commerce Department has found no illegal exports, 
but is investigating some potentially suspect cases. I would suggest 
that if the administration is sincere about true export control, it 
should reexamine its policy vis-a-vis Iran. Over a year ago, Secretary 
of State Christopher announced an American intention to isolate Iran, 
yet the continued export of dual-use material to this country and the 
American purchase of Iranian oil, seems to run counter to this 
pronouncement.
  If the world community wishes to avoid another Middle Eastern war, we 
must join together to take any and all steps necessary to prevent Iran 
from its goal of nuclear domination of the Middle East. In 1981, Israel 
foresaw the danger in Iraq. In 1995, let us not ignore the danger again 
with Iran and miss an opportunity to stop this problem before it gets 
too big.
  We must sever any remaining trade between the United States and Iran, 
to ensure that we do not provide them with anything that will come back 
to haunt us. We must take the lead and begin a worldwide effort at 
halting all exports to Iran until it sheds its violence and antagonism 
towards the West. When Iran agrees to join the rest of the civilized 
world, then we can consider lifting sanctions.
  I urge my colleagues to join me in cosponsoring this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                 S. 277

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Comprehensive Iran Sanctions 
     Act of 1995''.

     SEC. 2. CONGRESSIONAL FINDINGS.

       (a) Iran's Violations of Human Rights.--The Congress makes 
     the following findings with respect to Iran's violations of 
     human rights:
       (1) As cited by the 1991 United Nations Special 
     Representative on Human Rights, Amnesty International, and 
     the United States Department of State, the Government of Iran 
     has conducted assassinations outside of Iran, such as that of 
     former Prime Minister Shahpour Bakhtiar for which the 
     Government of France issued arrest warrants for several 
     Iranian governmental officials.
       (2) As cited by the 1991 United Nations Special 
     Representative on Human Rights and by Amnesty International, 
     the Government of Iran has conducted revolutionary trials 
     which do not meet internationally recognized standards of 
     fairness or justice. These trials have included such 
     violations as a lack of procedural safeguards, trial times of 
     5 minutes or less, limited access to defense counsel, forced 
     confessions, and summary executions.
       (3) As cited by the 1991 United Nations Special 
     Representative on Human Rights, the Government of Iran 
     systematically represses its Baha'i population. Persecutions 
     of this small religious community include assassinations, 
     arbitrary arrests, electoral prohibitions, and denial of 
     applications for documents such as passports.
       (4) As cited by the 1991 United Nations Special 
     Representative on Human Rights, the Government of Iran 
     suppresses opposition to its government. Political 
     organizations such as the Freedom Movement are banned from 
     parliamentary elections, have their telephones tapped and 
     their mail opened, and are systematically harassed and 
     intimidated.
       (5) As cited by the 1991 United Nations Special 
     Representative on Human Rights and Amnesty International, the 
     Government of Iran has failed to recognize the importance of 
     international human rights. This includes suppression of 
     Iranian human rights movements such as the Freedom Movement, 
     lack of cooperation with international human rights 
     organizations such as the International Red Cross, and an 
     overall apathy toward human rights in general. This lack of 
     concern prompted the Special Representative to state in his 
     report that Iran had made ``no appreciable progress towards 
     improved compliance with human rights in accordance with the 
     current international instruments''.
       (6) As cited by Amnesty International, the Government of 
     Iran continues to torture its political prisoners. Torture 
     methods include burns, arbitrary blows, severe beatings, and 
     positions inducing pain.
       (b) Iran's Acts of International Terrorism.--The Congress 
     makes the following findings, based on the records of the 
     Department of State, with respect to Iran's acts of 
     international terrorism:
       (1) As cited by the Department of State, the Government of 
     Iran was the greatest supporter of state terrorism in 1992, 
     supporting over 20 terrorist acts, including the bombing of 
     the Israeli Embassy in Buenos Aires that killed 29 people.
       (2) As cited by the Department of State, the Government of 
     Iran is a sponsor of radical religious groups that have used 
     terrorism as a tool. These include such groups as Hezballah, 
     HAMAS, the Turkish Islamic Jihad, and the Popular Front for 
     the Liberation of Palestine-General Command (PFLP-GC).
       (3) As cited by the Department of State, the Government of 
     Iran has resorted to international terrorism as a means of 
     obtaining political gain. These actions have included not 
     only the assassination of former Prime Minister Bakhitiar, 
     but the death sentence imposed on Salman Rushdie, and the 
     assassination of the leader of the Kurdish Democratic Party 
     of Iran.
       (4) As cited by the Department of State and the Vice 
     President's Task Force on Combatting Terrorism, the 
     Government of Iran has long been a proponent of terrorist 
     actions against the United States, beginning with the 
     takeover of the United States Embassy in Tehran in 1979. 
     Iranian support of extremist groups have led to the following 
     attacks upon the United States as well:
       (A) The car bomb attack on the United States Embassy in 
     Beirut killing 49 in 1983 by the Hezballah.
       (B) The car bomb attack on the United States Marine 
     Barracks in Beirut killing 241 in 1983 by the Hezballah.
       (C) The assassination of American University President in 
     1984 by the Hezballah.
       (D) The kidnapping of all American hostages in Lebanon from 
     1984-1986 by the Hezballah.

     SEC. 3. TRADE EMBARGO.

       (a) In General.--Except as provided in subsection (c), 
     effective on the date of enactment of this Act, a total trade 
     embargo shall be in force between the United States and Iran.
       (b) Covered Transactions.--As part of such embargo the 
     following transactions are prohibited:
       (1) Any transaction in the currency exchange of Iran.
       (2) The transfer of credit or payments between, by, 
     through, or to any banking institution, to the extent that 
     such transfers or payments involve any interest of Iran or a 
     national thereof.
       (3) The importing from, or exporting to, Iran of currency 
     or securities.
       (4) Any acquisition, holding, withholding, use, transfer, 
     withdrawal, transportation, 
     [[Page S1542]] importation or exportation of, or dealing in, 
     or exercising any right, power, or privilege with respect to, 
     or any transaction involving, any property in which Iran or 
     any national thereof has any interest; by any person, or with 
     respect to any property, subject to the jurisdiction of the 
     United States.
       (5) The licensing for export to Iran, or for export to any 
     other country for reexport to Iran, by any person subject to 
     the jurisdiction of the United States of any item or 
     technology controlled under the Export Administration Act of 
     1979, the Arms Export Control Act, or the Atomic Energy Act 
     of 1954.
       (6) The importation into the United States of any good or 
     service which is, in whole or in part, grown, produced, 
     manufactured, extracted, or processed in Iran.
       (c) Extraterritorial Application.--In addition to the 
     transactions described in subsection (b), the trade embargo 
     imposed by this Act prohibits any transaction described in 
     paragraphs (1) through (4) of that subsection when engaged in 
     by a United States national abroad.
       (d) Exceptions.--This section shall not apply to any 
     transaction involving the furnishing, for humanitarian 
     purposes, of food, clothing, medicine, or medical supplies, 
     instruments, or equipment to Iran or to any national thereof.
       (e) Penalties.--Any person who violates this section or any 
     license, order, or regulation issued under this section shall 
     be subject to the same penalties as are applicable under 
     section 206 of the International Emergency Economic Powers 
     Act (50 U.S.C. 1705) to violations of licenses, orders, or 
     regulations under that Act.
       (f) Application to Existing Law.--This section shall apply 
     notwithstanding any other provision of law or international 
     agreement.

     SEC. 4. OPPOSITION TO MULTILATERAL ASSISTANCE.

       (a) International Financial Institutions.--(1) The 
     Secretary of the Treasury shall instruct the United States 
     executive director of each international financial 
     institution described in paragraph (2) to oppose and vote 
     against any extension of credit or other financial assistance 
     by that institution to Iran.
       (2) The international financial institutions referred to in 
     paragraph (1) are the International Bank for Reconstruction 
     and Development, the International Development Association, 
     the Asian Development Bank, and the International Monetary 
     Fund.
       (b) United Nations.--It is the sense of the Congress that 
     the United States Permanent Representative to the United 
     Nations should oppose and vote against the provision of any 
     assistance by the United Nations or any of its specialized 
     agencies to Iran.

     SEC. 5. WAIVER AUTHORITY.

       The provisions of sections 3 and 4 shall not apply if the 
     President determines and certifies to the appropriate 
     congressional committees that Iran--
       (1) has substantially improved its adherence to 
     internationally recognized standards of human rights;
       (2) has ceased its efforts to acquire a nuclear explosive 
     device; and
       (3) has ceased support for acts of international terrorism.

     SEC. 6. REPORT REQUIRED.

       Beginning 60 days after the date of enactment of this Act, 
     and every 90 days thereafter, the President shall submit to 
     the appropriate congressional committees a report 
     describing--
       (1) the nuclear and other military capabilities of Iran; 
     and
       (2) the support, if any, provided by Iran for acts of 
     international terrorism.

     SEC. 7. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``act of international terrorism'' means an 
     act--
       (A) which is violent or dangerous to human life and that is 
     a violation of the criminal laws of the United States or of 
     any State or that would be a criminal violation if committed 
     within the jurisdiction of the United States or any State; 
     and
       (B) which appears to be intended--
       (i) to intimidate or coerce a civilian population;
       (ii) to influence the policy of a government by 
     intimidation or coercion; or
       (iii) to affect the conduct of a government by 
     assassination or kidnapping.
       (2) the term ``appropriate congressional committees'' means 
     the Committee on Foreign Relations of the Senate and the 
     Committee on International Relations of the House of 
     Representatives;
       (3) the term ``Iran'' includes any agency or 
     instrumentality of Iran;
       (4) the term ``United States'' means the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Commonwealth of the Northern Mariana Islands, American 
     Samoa, Guam, the Virgin Islands, and any other territory or 
     possession of the United States; and
       (5) the term ``United States national'' means--
       (A) a natural person who is a citizen of the United States 
     or who owes permanent allegiance to the United States;
       (B) a corporation or other legal entity which is organized 
     under the laws of the United States, any State or territory 
     thereof, or the District of Columbia, if natural persons who 
     are nationals of the United States own, directly or 
     indirectly, more than 50 percent of the outstanding capital 
     stock or other beneficial interest in such legal entity; and
       (C) any foreign subsidiary of a corporation or other legal 
     entity described in subparagraph (B).
     

                          ____________________