[Congressional Record Volume 141, Number 20 (Wednesday, February 1, 1995)]
[House]
[Page H1027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page H1027]]
  THE AMERICAN PEOPLE DESERVE TO BE HEARD IN DECISIONS ON THE MEXICAN 
                                BAILOUT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Tennessee [Mr. Wamp] is recognized for 5 minutes.
  Mr. WAMP. Mr. Speaker, I come today as a freshman Member of this body 
with a burden on my heart to speak to the American people about this 
crisis in Mexico. I think it points out that we have a crisis in 
Washington, because some people are still not listening to the American 
electorate. I think the people out here deserve to know some of what we 
are privy to know here in Washington, DC, relative to the Mexican 
bailout and the actions, in the last few hours, of the administration.
  Today I was briefed at the Republican policy meeting by our Treasury 
Secretary, Robert Rubin. While I have a tremendous amount of admiration 
and respect for Mr. Rubin, I realize that he is in a very difficult 
situation because he was thrown into, as our new Treasury Secretary, 
this unfortunate situation in Mexico.
  Mr. Speaker, many people in our conference, in the Republican 
Conference, believed for the last 2 weeks as the administration came to 
us, Mr. Greenspan, Mr. Rubin, and made their case for why we needed to 
consider a $40 billion bailout of Mexico's peso, we believed that 
Congress was the only way that they could come and tap into the 
resources necessary to try to achieve their objectives.
  We did not believe, from the questions that we asked at the meetings 
which we attended, that the Stabilization Fund was even possible to tap 
into. We continued to believe that as the administration continued to 
work with our leadership for the last 2 weeks, and proposals were 
brought before us, that they had to come through Congress where the 
money is appropriated in this country to get even a little part of 
money, let alone 40 billion dollars' worth of money. The Stabilization 
Fund was off limits.
  Today I asked Mr. Rubin, ``Mr. Rubin, exactly when and why was the 
Stabilization Fund decision made to tap into this fund and to use an 
Executive order from the President to take this $20 billion?'' He gave 
me three answers. I think the American people need to hear them.
  First of all, he said he recognized that it was preferable to come to 
Congress for this money. I
 think it is preferable. That is an understatement. It is preferable to 
come to Congress for a $40 billion loan package to anybody, any time.

  Second, he said ``Until the International Monetary Fund, the IMF, 
raised their commitment from $7-some-odd billion to $17.5 billion, 
using this fund was not an option because collectively it did not get 
to 40 billion dollars' worth of guarantees,'' which is what they needed 
in order to meet the problems in Mexico.
  Third, Mr. Speaker, and most importantly, he said the crisis got out 
of hand. On Monday the crisis got out of hand and it required quick and 
decisive action. I tip my hat to him. Clearly this is quick and 
decisive action.
  However, Mr. Speaker, let me make some points representing this 
freshman class that was just elected to the 104th Congress.
  Many questions are left unanswered. Today, still no answers to these 
questions: How long is the term on this debt? Three years? Five years? 
How long?
  Exactly how is it going to be repaid? Are these direct payments or 
are these loans? Again, today they could not give us a definitive 
answer.
  What are the conditions that Mexico must meet in order to receive 
this financial commitment? Still left unanswered, yet through this 
Executive order, $20 billion is pulled from the Stabilization Fund.
  Mr. Speaker, I have not been in Congress very long, but I was in the 
real estate business for a long time before I got to Congress. I can 
tell Members that if our Government was in the banking business--and I 
don't think we ought to be--if we were, we would have required a pro 
forma, a first mortgage, good credit history, on and on and on, none of 
which we got.
  Mr. Speaker, this is a bad deal for the American people. I come to 
the floor today outraged for the American people that, first, they have 
overlooked the citizens of this country, who spoke loud and clear on 
November 8 that they are tired of the Government running off anywhere 
without them, that this is their House of Representatives, this is 
their Congress, this is their Government, this is their country.
  Second, Mr. Speaker, the Congress has been circumvented in a major 
way, with billions and billions of dollars. I am a populist 
conservative freshman. I represent, I believe, the majority wishes of 
the Third District of Tennessee, and in fact, I believe this freshman 
class represents the heart of the American electorate. We are upset 
about this.
  You know one reason they circumvented Congress? They knew they could 
not get this through this Congress because they ran into a wall called 
the freshman class of the 104th Congress, which I believe stood 80 or 
90 percent against even talking about a multibillion-dollar bailout to 
Mexico.
  Mr. Speaker, who is to say this is not going to happen again? We know 
that it is. It is high time, Mr. Speaker, that the American people have 
a voice in Washington, DC, on either end of Pennsylvania Avenue. It is 
time we listened to you. I am here to carry the torch for the American 
people.


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