[Congressional Record Volume 143, Number 10 (Thursday, January 30, 1997)]
[Senate]
[Pages S823-S829]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    NOMINATION OF WILLIAM M. DALEY, OF ILLINOIS, TO BE SECRETARY OF 
                                COMMERCE

  The assistant legislative clerk read the nomination of William M. 
Daley, of Illinois, to be Secretary of Commerce.
  The PRESIDING OFFICER. There will be 30 minutes for debate on this 
nomination to be equally divided between the chairman and ranking 
minority member of the Committee on Commerce, Science, and 
Transportation.
  Mr. McCAIN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arizona.
  Mr. McCAIN. Mr. President, soon the Senate will vote on the 
nomination of William Daley to be Secretary of the Department of 
Commerce. Yesterday, the Commerce Committee reported favorably Mr. 
Daley's nomination by a vote of 19 to 1. I hope the full Senate will 
also vote overwhelmingly for Mr. Daley.
  The confirmation of nominees by the Senate is a duty prescribed by 
the Constitution. The advise-and-consent obligation given to the Senate 
in the Constitution is an extremely important task. It should not and 
must not be taken lightly. At the same time, I believe that it is the 
President's prerogative to appoint whomever he chooses to 
administration positions and that such nominees should only be opposed 
and defeated if there is clear and compelling evidence that such 
nominee is unfit or unable to serve the Nation. Such decision should be 
made only after exhaustive questioning of the nominee and much soul 
searching.
  Mr. William Daley has been asked by the President to serve this 
Nation as Secretary of the Department of Commerce. Three major lines of 
questioning were asked by the committee:
  What are Mr. Daley's qualifications to serve as Secretary? What are 
Mr. Daley's plans for the Department? And what are Mr. Daley's policies 
that would implement those plans?
  Numerous questions regarding the Commerce Department have been asked 
of the nominee. He has either fully answered the questions or has

[[Page S824]]

committed to providing the committee an answer in a timely fashion.
  Mr. President, I am particularly pleased to announce that the 
Department will cut 100 political appointees from its ranks. The 
Department has a staggering 256 political appointment positions 
available. Mr. Daley pledged to reduce that number by 100. He should be 
strongly commended for this action.
  Additionally, at his confirmation hearing, Mr. Daley announced that 
all foreign trade missions would be halted until the Department, in 
consultation with the Congress, develops a set of criteria designed to 
ensure such missions are not politicized. We have all read the press 
reports alleging that political quid pro quos were a part of such trade 
missions. Promoting U.S. products abroad and opening foreign markets to 
U.S. business, not electoral politics, should be the only purpose of 
such missions.

  Again, I am very pleased that Mr. Daley has agreed to work with the 
committee to ensure that the occurrences of the past do not happen 
again. I am very pleased that Mr. Daley has agreed to refrain from 
preferential politics. Discretionary money appropriated to the 
Department of Commerce should be allocated based on a set of standards 
and fair criteria that do not give special treatment to any specific 
locality or region.
  Mr. Daley's commitment in this area is commendable. Mr. Daley has 
also pledged to act expeditiously on any requests for information for 
files if asked for by any congressional committee.
  Mr. President, I think it is appropriate for me to say that we all 
know that there are serious allegations concerning individuals who were 
part of the Department of Commerce. Mr. Daley is aware of those 
allegations. He is fully aware and appreciative of the obligation that 
he has to refurbish the image of that Department because of the 
activities of some. I am very confident that he is committed to doing 
so and will be able to do so. He is an experienced, talented individual 
who I believe is very capable of carrying out that daunting task.
  Last, Mr. Daley promised to recuse himself from any issue that would 
present a conflict of interest and to work to restore the integrity of 
the Commerce Department. Such a task will certainly not be easy, but I 
believe it can and must be done.
  For the record, Mr. President, some press reports have raised 
questions regarding Mr. Daley's past business and political activities. 
Such reports infer that Mr. Daley or his family may have benefited 
either personally or politically in certain circumstances. Those press 
reports have been made part of the permanent committee record. All such 
allegations were raised with the nominee and found to either lack 
credibility, be proven false, or were fully explained to the 
satisfaction of the committee.
  Let me reiterate that point. Based on the evidence presented by all 
concerned to the committee, the nominee has engaged in no activity that 
would cause this Member to vote against him. In fact, the nominee has 
taken great steps to rebut all allegations and explain the facts 
surrounding them. After such explanations were forthcoming by the 
nominee, the committee moved expeditiously to approve this nomination.
  In closing, the Commerce Committee has looked into Mr. Daley's 
qualifications and his fitness to serve, and we believe he is a fine 
individual who will make an outstanding Commerce Secretary. Mr. Daley 
has a tough road ahead of him. But I am confident he is up to the task. 
He has already begun to demonstrate the leadership necessary to move 
the Department into the next century.
  I look forward--and I know I speak for all Members on my side of the 
aisle--to working with the new Secretary and wish him and his family 
the very best during their time here in Washington. Mr. President, I 
strongly urge the Senate to confirm this nomination.
  I yield the floor.
  Mr. HOLLINGS addressed the Chair.
  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. HOLLINGS. I am delighted to serve with my distinguished white-
haired chairman. My wife says when I appear on TV I look like a Q-Tip.
  Mr. President, next week the President of the United States will be 
delivering his State of the Union Message. The Union is in somewhat 
disrepair, intense disrepair, I might say, because for 50 years after 
World War II, with the Marshall plan, we sacrificed our economy. And it 
has worked. Capitalism has overcome communism. They are going the way 
of freedom and individual rights the world around now. But it has been 
at quite a cost to our economic strength.
  We have lost over 2 million jobs just in the past 10 years. Our 
manufacturing sector has gone from 26 percent of our work force down to 
13 percent. Now is the time to rebuild. In order to do that, we need a 
very strong Secretary. I am pleased that President Clinton has chosen 
an unusually strong Secretary in the person of Bill Daley of Chicago.
  The fact of the matter is, for many years now he has been a business 
leader, a business attorney, a banker, an outstanding civic leader, in 
many respects, and more particularly we know him here in Washington as 
a special counsel to President Clinton on extending the North American 
Free-Trade Agreement from Canada down to Mexico. Necessarily, there was 
quite a difference on this side of the aisle with respect to that 
agreement, but be that as it may, Bill Daley handled that with 
thoroughness and with tact and with persistence. And it passed with 
strong bipartisan support.
  He knows his subject of trade. He understands the business needs. He 
is a very strong individual. He came to the assignment immediately 
going over to brief himself on the Department and, as the distinguished 
chairman has already pointed out, has announced, in unique form for a 
nominee, that he was going to downsize some of the duplications there 
in the Department itself and make sure that the trips were made for 
industry and not for politics.

  More than anything else, he is really intent on reestablishing the 
morale of the Department with the loss of Ron Brown who did an 
outstanding job as the Secretary of Commerce. And I say that advisedly 
because I have been at least through a dozen or so in the last 30 years 
and worked with them in that 30-year period, not only with respect to 
the authorization of the Department, but the appropriations there.
  Ron Brown did an outstanding job. Yes, there were some solicitations. 
Thank heavens it was not solicitations by Ron Brown like most 
Secretaries of Commerce. We had one Republican Secretary of Commerce go 
to jail for his solicitations. If we have to get into solicitations, I 
am going to be glad to make the record.
  But the spirit here is one of bipartisanship in the support for Bill 
Daley. I was particularly impressed that not only the distinguished 
Democratic Senators, Senator Moseley-Braun of Illinois, and our 
distinguished colleague, Senator Durbin of Illinois, were there to 
present him in enthusiastic fashion, but he was presented to the 
committee by none other than the chairman of the House Judiciary 
Committee, the most respected Henry Hyde of Illinois, and the campaign 
manager for Robert Dole's Presidency, the former Secretary of Defense, 
Donald Rumsfeld.
  So we have the respect and confidence of the leadership in Chicago 
and Illinois that really knows him best. And it is with that record 
here that he comes. I am particularly enthusiastic that President 
Clinton has made this appointment. I want to yield now to our 
distinguished colleague from Illinois.
  Mr. DURBIN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Illinois.
  Mr. DURBIN. I thank the Senator from South Carolina for yielding.
  It is ironic that this is my first speech on the floor of the U.S. 
Senate and that I am speaking on behalf of a gentleman whom I have 
known for 25 years and one I am proud to support. I speak on my behalf 
and on the behalf of the senior Senator from Illinois, Senator Carol 
Moseley-Braun, in support of this nomination of Bill Daley to be our 
new Secretary of Commerce.
  Bill Daley, of course, is well known in the city of Chicago and 
across this Nation. The Daley name carries with it certain connotations 
of political leadership, mainly positive, maybe some negative on a 
national basis. But those of us who know what the Daley legacy

[[Page S825]]

has been in the State of Illinois feel that it is overwhelmingly 
positive because of the contribution that has been made to our State, 
to the city of Chicago, and to this Nation by the Daley family over the 
last few decades. It has been significant, significant in this respect: 
The Daley family has been willing to step forward into public service 
to face the slings and arrows that public figures face, and to lead.
  And they have led, led our great city of Chicago forward, not only 
under Mayor Richard J. Daley but now Richard M. Daley, and through the 
other members of the Daley family.
  William Daley--Bill Daley as we know him--has often been behind the 
scenes, not on the center of the stage. Of course, when his father was 
mayor, he was a young man. Now that his brother is mayor, and he is in 
a capacity to play a larger role, many times he has stepped to the 
side. He led in his own fashion, in his own way, and developed a 
reputation in Chicago, and I think across this country, for leadership, 
not only the obvious, leading in the city, in community endeavors, 
charitable undertakings, making certain there was some vision from the 
business community about the future of Chicago, but on the national 
scene as well.
  It is interesting that when President Clinton faced one of his 
toughest challenges in his first term, in passing NAFTA, a 
controversial issue even within the Democratic party, that he would 
turn to Bill Daley of Chicago and say, ``Come to Washington. Use your 
skills and leadership to help me pass this important trade agreement.''
  When the dust had settled and NAFTA had passed, even the critics of 
NAFTA gave credit to Bill Daley and said, ``Here is a man who could be 
trusted.'' His door was open. His word was good. As I said at the 
Commerce Committee, he showed the skills of a playmaker like Michael 
Jordan, whose name may be known to even the Senator from South 
Carolina. We are proud of the fact that Bill Daley has served this 
country well. We think this designation of Bill Daley as the Secretary 
of Commerce creates another opportunity for him to serve his Nation 
well.
  It is no surprise that the Department of Commerce has been under the 
spotlight in the last several months, and some questions have been 
raised, and I think deservedly so.
  I want to salute my colleague from Arizona, Senator McCain, for 
noting that there is need for reform in the Department of Commerce. I 
say to Senator McCain, we could not choose a better person than Bill 
Daley to bring about real reform, because he is a professional.
  I have to also note the Senator's comments about investigations into 
questions about his background have shown that they were fine, that he 
comes to this job with the level of honesty and integrity that we 
expect of Cabinet people and people in public service. He will be 
tested to put together a team to bring about real reform in the 
Department of Commerce. Bill Daley is going to meet that challenge. I 
think he is going to rise to that occasion.
  I might speak to one other point before yielding back. During the 
course of this hearing and investigation, questions have arisen about 
the future of the Department of Commerce. Some have even questioned 
whether it should exist. I, for one, believe it plays a critically 
important role. Now that the cold war is behind us, we are engaged in a 
new war of equal proportion--a war over jobs, a war over opportunities, 
a war to find, I guess, for the next generation of Americans, the same 
opportunities other generations have enjoyed.

  We cannot step back and hope that our reputation as a Yankee trader 
will be all that is needed for us to win in that war. We need to be on 
the front, in that battle, making certain that American workers and 
businesses are treated fairly when it comes to world commerce. That is 
the job of the Department of Commerce, one of the more important 
responsibilities that it faces. I hope the Department of Commerce is 
valued for that responsibility. It certainly is, in my estimation. I 
know Bill Daley feels the same.
  His background in business, in banking, in the practice of law, and 
in public policy, make him uniquely qualified to come to this job in 
the Department of Commerce and to serve his Nation well. I am happy to 
stand today in support of this nomination. I hope that this body will 
join me in giving a solid vote of support to the designation of Bill 
Daley as our new Secretary of Commerce.
  I thank the Senator from South Carolina for yielding me the time.
  Mr. HOLLINGS. Mr. President, Michael Jordan makes his money in 
Chicago, but he spends it in South Carolina. We welcome him down there 
regularly. I think he is a property owner by now in Hilton Head. I will 
check it out, because that would be one of the few votes I could get on 
Hilton Head.
  Mr. President, the appointment of William Daley to head the 
Department of Commerce comes at a critical juncture in our history. We 
have emerged triumphant from our long struggle against the forces of 
tyranny and totalitarianism. Our victory in the cold war was secured 
through the commitment and sacrifice of the American people, who 
willingly subordinated their economic interests to sustain the alliance 
against Soviet expansionism. It was access to the rich American market 
that enabled our allies to rise from the ashes and rebuild their 
economies. For four decades the American market absorbed the world's 
exports while our exporters confronted closed markets abroad. Our 
generosity has taken a tremendous toll on the American economy. For the 
past 20 years wages for the American worker have remained stagnant. The 
average American now earns 20 percent less today than he or she earned 
20 years ago. The toll has been most devastating in the manufacturing 
sector. Manufacturing now accounts for a mere thirteen percent of our 
GNP, half that of Germany or Japan. The most terrible price that we 
paid was the loss of 2 million manufacturing jobs, which were the 
backbone of the American economy.
  Having triumphed abroad it is now time to rebuild at home. Restoring 
the promise of America and rebuilding our economy will require the same 
commitment and sacrifice that won the cold war. The Commerce Department 
should be at the forefront of this effort. There are some, who in the 
name of budget discipline, call for the Department's elimination. In an 
era in which economic and national security are synonymous, eliminating 
the Commerce Department would be tantamount to unilateral disarmament. 
The budget will not be balanced by political gimmicks and symbolic 
gestures. Abolishing the Commerce Department will not make a dent in 
balancing the budget; what it will do is put us at a competitive 
disadvantage in the global economy.
  In today's new world economy American firms and American workers 
compete against foreign companies whose governments are allies of 
business, not adversaries. Where once we stood at the apex of the world 
economy, now no industry in America is immune from this intense foreign 
competition.
  In market after market, industry after industry, U.S. companies 
compete against foreign companies that are the beneficiaries of 
strategic alliances with powerful ministries of trade and industry. 
Those who believe that government has no role in supporting industry 
and American workers seek to rewrite history and ignore the realities 
of the new international competition. In the new global economy, the 
line between public sector and private sector is at times indistinct.

  Our competitors nurture industrial development through rigged capital 
markets, generous subsidies, infant industry protection, and favorable 
export incentives. The invisible hand of the free market did not 
develop Korea's world class semiconductor industry. Instead it was the 
iron fist of decrees laid down by Korea's Ministry of Trade, which kept 
out foreign competition unless they licensed technology to Korean 
companies. The iron fist was complemented by the largesse of Korea's 
Finance Ministry which provided low interest loans to foster the 
development of its industries.
  The invisible hand of the market did not create Airbus, nor does it 
guide the development of the faster growing economies in the Pacific 
rim, which are following the Japanese model of development. The irony 
is that the market alone was not responsible for the development of our 
own industrial

[[Page S826]]

base. From Alexander Hamilton's ``Report on Manufactures,'' to the 
revolution in information technology initiated through research 
conducted by the Department of Defense, our economic strength has been 
fortified by a symbiotic relationship between government and the 
private sector.
  The strong Commerce Department is an essential prerequisite for 
competing in the global economy. The Commerce Department, through its 
technology administration, plays a crucial role in developing the 
critical technologies of the future. Although the National Institute 
for Standards and Technology [NIST] accounts for only 1 percent of the 
U.S. research and development budget--it is the principal program 
dedicated to fostering critical technologies that have a commercial 
application. U.S. companies face great pressure to deliver short run 
returns for the fund managers who dominate America's capital markets. 
As the Wall Street Journal noted, ``the biggest U.S. companies have cut 
back sharply on research into `basic science' to pursue short term 
goals * * *.'' This alarming trend did not go unnoticed by the Council 
on Competitiveness, which noted, ``Long-term investments rates as a 
percentage of GDP are falling just when Asian and European competitors 
are ramping up their R&D programs.'' This is why it is crucial that we 
maintain our Advanced Technology Program. It enables industry and 
government to join forces in carrying out broad-based, long-term, peer-
reviewed projects that could have large payoffs down the road. 
Eliminating the Government's role in technological development will 
consign our economy to second-rate status. Furthermore, it would allow 
Asians and Europeans to dominate the emerging technologies which will 
create the jobs of the future.
  Not only does the Commerce Department play a critical role in 
fostering technology, it plays an equally important role in protecting 
U.S. industries from the predatory trade practices that have crippled 
many of our domestic industries. Vigorous enforcement of our 
antidumping laws is crucial to maintaining our standard of living. Far 
too often our competitors have hidden behind a citadel of protection in 
their home markets while simultaneously flooding our economy with 
illegally dumped products. A Commerce Department that aggressively 
enforces our trade laws will enable U.S. companies to sustain their 
investment in strategic technologies and keep jobs at home.
  Strengthening the Commerce Department will require a strong 
Secretary. Bill Daley fits that description. He has been both a civic 
leader and a business leader. Those of us who opposed NAFTA know him as 
a worthy adversary, a man who gets things done. More important, Bill 
Daley is a man who understands what a privilege and an honor it is to 
be a public servant. While it may be fashionable in some quarters to 
denigrate public servants, this nominee knows how effective government 
can change people's lives for the better.
  I urge my colleagues to vote to confirm this excellent appointment.
  Mr. President, let me emphasize once again the point made by both our 
distinguished chairman and distinguished colleague, Senator Durbin. The 
Commerce Department has got to be in this front line now of rebuilding 
our economic strength--a very, very important division within the 
Department, foreign commercial services, the International Trade 
Administration. The consensus, I should emphasize to my friends, that 
while we are spending some $600 million, in a couple of years that 
budget that is getting ready for the next millennium that everyone is 
talking about, that budget will jump to $1.5 billion. I can see some 
saying, ``Heavens above, this is a runaway Department.'' But these 
endeavors cost, and we want to make sure that they do a credible job, 
as they have been doing, in my opinion.
  We have the very strong divisions in there with respect to the 
Economic Development Administration that has worked extremely well over 
the years now, and the Department has a group of the best professionals 
with respect to this global competition. When the special trade 
representative, when the State Department and others come and try to 
learn the facts, it is our Department of Commerce that furnishes the 
weaponry, so to speak, the statistics, the findings, and everything 
else as to exactly where we are and how well we are doing to give them 
credibility in their negotiations.
  So, to have the brilliance of Bill Daley of Chicago come to head up 
the Department, the conscientious nature that he has already displayed 
with respect to taking over these duties is heartening to this 
particular Senator, and I am delighted to be with our distinguished 
chairman in endorsing his nomination.
  Ms. MOSELEY-BRAUN. Mr. President, I am very pleased to be able to 
speak on behalf of the nomination of William M. Daley to be the 
Secretary of Commerce. At the outset, I want to congratulate the 
President for selecting Bill Daley. I do not believe he could have made 
a better choice to lead the Department of Commerce into the new 
century.
  The Department of Commerce has a long and distinguished history, but 
it is a department that sometimes seems to lack focus. Its mission 
includes things as diverse forecasting the weather, handling patents 
and trademarks, conducting the census, travel and tourism, and 
international trade. What brings all of these diverse subjects together 
however, is one overriding mission: assisting Americans in enhancing 
the competitiveness of the United States in the world economy. The 
Department of Commerce does not control the competitiveness of our 
economy, but its work opens up competitive opportunities for the 
private sector, and helps the private sector obtain the information it 
needs to realize its competitive potential.
  The Department's mission goes beyond the dry names of its 
subagencies. It is part of the foundation of our economy. It helps open 
doors abroad for U.S. exporters. It helps us know where we stand, and 
where we might be going. It gives us the kind of data that helps both 
American business and American workers achieve a brighter, more 
prosperous future. It is an advocate for economic growth, and helps 
build the kind of broader, stronger trade links on which our future 
economic success in no small part depends.
  Bill Daley has the background, the talent, the integrity, the energy, 
and the determination to ensure that the Commerce Department reaches 
its full potential as an asset for U.S. economic growth. He is the 
ideal person to build on the great work done by Mickey Kantor and the 
late Ron Brown.
  His past accomplishments demonstrate what he will be able to achieve 
as Secretary. He is a real leader, both in Illinois and nationally. He 
has a strong record in the private sector, and an equally strong record 
in public and civic affairs. His resume is a distinguished one. It 
includes serving as:
  President and chief operating officer of the Amalgamated Bank of 
Chicago;
  Special counsel to the President for the North American Free-Trade 
Agreement in the fall of 1993, helping President Clinton achieve 
passage of that major trade agreement;
  A senior partner at one of Chicago's most prestigious law firms, 
Mayer, Brown & Platt; and
  Cochair of Chicago 96, the nonpartisan, not for profit host committee 
that so successfully oversaw the city and community planning for the 
1996 Democratic Convention in Chicago.
  Bill Daley was born and raised in Illinois, and he was also educated 
in Illinois. His undergraduate degree is from Loyola University in 
Chicago, and he holds a L.L.B. from the John Marshall Law School in 
Chicago.
  If I may be permitted a moment of regional chauvinism, I will say 
that Bill Daley has all the Midwestern virtues. He has an uncommon 
amount of common sense, he is an extremely hard worker, he is 
unpretentious, his life exemplifies the kind of family values we talk 
about so much here in Washington; and he is always focused on getting 
the job done. He is a skilled lawyer, an extraordinary negotiator, and 
an executive of rare ability. He has the kind of good judgment that 
makes him a person who is always being called on for help, and he has 
never failed to provide that help. And while most of his career has 
been in the private sector, he has unstintingly given of his time to 
public and charitable causes. Like his brothers, and his father before 
him, he has a real commitment to public and community service. Like all 
of the

[[Page S827]]

other members of his family, he is deeply patriotic, and dedicated to 
doing everything he can to help all of our people and every part of our 
country build an ever-brighter, ever-more prosperous future.
  Bill Daley has the talent to manage a large, diverse organization 
like the Department of Commerce, and he is the kind of person that will 
make the Department run more efficiently and effectively. He 
understands business, and he knows how important it is for the United 
States to compete successfully in the world economy.
  This is a time of enormous change, not just in our economy, but also 
in the Commerce Department. I cannot think of a person better suited to 
making the necessary reforms so that the Commerce Department can 
successfully meet the challenges of the new century that will soon be 
upon us. I know he will make a first-rate Secretary of Commerce, and I 
strongly recommend that the Senate act expeditiously and favorably on 
his nomination.
  Mr. DOMENICI. Mr. President, I rise to express my support for the 
confirmation of Mr. William Daley as the next Secretary of Commerce.
  I am glad to learn that Mr. Daley recognizes the need to streamline 
the Commerce Department and that he is willing to perform a top to 
bottom review of its agencies and programs to ensure productivity and 
efficiency. In addition, I am hopeful that Mr. Daley will address the 
numerous concerns which have hampered this Department's effectiveness 
in the recent past and that he will strive to restore the Department's 
good reputation.
  As we enter into the 21st century, America must make new strides to 
ensure its strong standing in the ever growing global economy. We must 
continue to further our ties with foreign nations and businesses so 
that our economy will continue to be the engine that drives the world's 
prosperity.
  Although our economy continues to grow yearly, I believe we should be 
concerned with how slow that rate of growth has been. Small businesses 
are the backbone of our national economy and I am hopeful that Mr. 
Daley will focus more attention on promoting the role of small business 
in foreign trade. With only 12 percent of our small businesses 
participating in foreign markets, I believe we have to focus more 
attention and resources to promoting their interests worldwide.
  As it did with NAFTA and GATT, we need the Commerce Department to 
continue to open new markets. Additionally, the Department of Commerce 
must ensure that our trade partners comply with the promises set forth 
in all such agreements. As competition around the world becomes 
stronger by the day, the Department of Commerce, under its new 
Secretary, must strive to guarantee a level playing field to ensure the 
economic future of the American people.
  With nearly one-fourth of our gross domestic product resulting from 
exports and with more than 11 million workers owing their jobs to their 
employer's overseas business, Mr. Daley's work as Secretary of Commerce 
will be felt nationwide.
  Mr. President, I yield the floor.
  Mr. BROWNBACK. Mr. President, it is with regret that I announce that 
today I will be voting in opposition to the nomination of William M. 
Daley to the position of the Secretary of the U.S. Department of 
Commerce. While Mr. Daley's character and his distinguished career in 
public service demonstrate that he has the qualifications for the 
position to which he has been nominated, these qualifications are 
necessary, but in and of themselves, not sufficient to merit my vote.
  My chief concerns regarding Mr. Daley's suitability for the position 
reflect: First, questions over his willingness and commitment to deal 
with corporate welfare in the agency; and second, his commitment to 
engage in the fundamental overhaul of a Department whose management 
practices and many missions have been called into question by numerous 
reports by the Department's inspector general and by the General 
Accounting Office.
  Corporate welfare has no place in this Government today. Mr. Daley 
generally agrees we should not have corporate welfare in the Federal 
Government. However, he disagrees with the appropriate definition of 
corporate welfare. I asked repeatedly for a specific commitment from 
him to study whether corporate welfare was being doled out by the 
agency. He was unwilling to do so, although he made a similar 
commitment with respect to the issue of foreign trips conducted by the 
agency.
  My second concern is the redundancies at the Department of Commerce. 
According to a recent GAO study the Department of Commerce functions 
are duplicated 71 times throughout the Federal Government. I discussed 
this problem with Mr. Daley during the hearing. He stated that he would 
consider the issue, but made no specific commitments as to when he 
would address the issue nor in what quantity. He would not commit to 
report to Congress within 6 months or 1 year on these known 
redundancies nor would he commit to cutting back the number of 
redundancies by a minimum of even 10 percent. He did make such specific 
commitments regarding political appointees, which he agreed to reduce 
by 100.
  Because Mr. Daley has refused to make specific commitments to address 
these problems I do not support his nomination. The next Secretary of 
Commerce should be someone who recognizes the seriousness of these 
problems, and who is committed to addressing them.
  Mr. DASCHLE. Mr. President, I rise today to congratulate William 
Daley on his nomination to be Commerce Secretary of the United States. 
I believe his lifelong experience in the private sector and strong 
record of public service will provide him with an extraordinary range 
of skills that make him unquestionably qualified for this position.
  First, he will bring a business perspective to the Department of 
Commerce. From the insurance industry, to a law practice that 
specialized in international trade, to serving as president of the 
Amalgamated Bank, William Daley understands the needs of the private 
sector.
  As a special counsel to President Clinton during the debate over the 
North American Free-Trade Agreement, he also demonstrated an ability to 
work with lawmakers on both sides of the aisle and was instrumental in 
securing its congressional approval.
  And finally, William Daley believes in the responsibility of the 
Department of Commerce to enhance the competitiveness of American 
companies in the global marketplace. He knows that our economy cannot 
grow without the strength of new ideas and a lasting commitment to the 
risk takers who develop them.
  As a successful businessman and a dedicated public servant, I am 
confident that William Daley will build on the legacy of Mickey Kantor 
and the late Ron Brown, whose tireless efforts created countless new 
opportunities for American companies around the world.
  As Commerce Secretary, William Daley will be an energetic promoter of 
our business interests, a skilled negotiator in opening new markets, 
and a visionary who believes in the value of researching and developing 
new products and ideas.
  I look forward to working with him in advancing the interests of the 
American business community in the years ahead.
  Mr. KERRY. Mr. President, I am pleased to support Bill Daley to be 
the next Secretary of Commerce. In his appearance before the Senate 
Commerce Committee, Mr. Daley impressed me and other members with his 
energy, his enthusiasm, and his firm grasp of the challenges faced by 
American companies attempting to compete in the world marketplace. In 
my view, Mr. Daley demonstrated that he possesses the qualities, 
energy, and instincts necessary to be a successful Secretary, and to 
lead the Commerce Department into the 21st century.
  We all regret that, in recent years, the Department of Commerce has 
become the target of a great deal of criticism. Though some of this 
criticism may be warranted, in my view most of the criticism is not 
aimed at creating a better or more efficient Department but instead is 
an attempt to sacrifice valuable and important Federal activities for 
short-term ideological and partisan gain. Nevertheless, I applaud Mr. 
Daley for his forthright acknowledgment of the criticism and his 
commitment to address several of the concerns raised. His pledge to 
review the process

[[Page S828]]

by which persons are selected to accompany Department officials on 
trade missions abroad and his promise to reduce the number of political 
appointees at the Department are a strong testament of the sincerity of 
Mr. Daley's commitment.
  From conversations with leaders of the Massachusetts business 
community, and especially with those who run the small businesses that 
are the engines of economic growth in my State, there is broad support 
for the functions performed by the Commerce Department, and there is 
near unanimous agreement that the U.S. Government must aggressively 
assist U.S. companies attempting to develop and utilize new 
technologies, and enter new markets overseas. Small and emerging 
companies in Massachusetts have benefited greatly from several Commerce 
programs. The Advanced Technology Program and the Manufacturing 
Extension Service are both excellent examples of government making 
smart investments in emerging companies. The evidence for both of these 
programs demonstrates that each dollar invested generates many more in 
return. The same is true for the programs administered by the Trade 
Promotion Coordinating Committee and the U.S. Foreign Commercial 
Service. The one-stop-shop trade center in Boston has helped hundreds 
of New England companies develop and expand markets overseas. Finally, 
the Economic Development Administration remains one of the few 
resources that cities can call on for capital planning or capital 
project assistance that will boost their economies and create jobs. For 
this reason, the EDA must be maintained and strengthened.
  A vital but not-as-well-known arm of the Commerce Department is the 
National Oceanic and Atmospheric Administration. I consider NOAA to be 
one of the Federal Government's premier scientific research and 
resource management agencies, with responsibility for the stewardship 
of our marine resources, management of our coastal zone, and operation 
of the National Weather Service, environmental satellite systems and a 
fleet of oceanographic research vessels. These oceanic and atmospheric 
programs are a critical component in the integrated effort to study and 
maintain the Earth's ecosystem.
  Other Commerce agencies, such as the National Institute of Standards, 
the Census Bureau, and the Patent and Trademark Office perform missions 
that are necessary to our economic and governmental functioning. In my 
view, the Commerce Department is in a unique position with 
responsibility for trade, technology, and environmental matters, and 
this presents Mr. Daley with a special opportunity: to successfully 
integrate U.S. policy on economic and environmental issues. After 
following his impressive career and after carefully listening to his 
recent testimony before the Senate Commerce Committee, I have every 
confidence that Mr. Daley understands and appreciates this unique 
mission. I support his confirmation, and I urge my colleagues to do the 
same.
  Mrs. BOXER. Mr. President, I am delighted that the Senate will give 
its approval today to the nomination of William M. Daley to be 
Secretary of Commerce.
  Mr. Daley is with the Chicago, IL, law firm of Mayer, Brown & Platt. 
He previously served as the president and chief operating officer of 
Amalgamated Bank of Chicago, and as special counsel to the President 
for the North American Free-Trade Agreement. I believe Mr. Daley's 
background and experiences will be of tremendous benefit to America's 
businesses as they navigate their way through the global economic 
marketplace in which they now operate.
  It is particularly important to my home State of California that the 
Department of Commerce have a strong and effective leader. Bill Daley 
will be such a leader.
  California is the Nation's leading exporter. Last year, California 
accounted for 16 percent--$90 billion--of the Nation's exports, an 
increase of almost $14 billion over the 1994 levels. This tremendous 
amount of exports supported approximately 1 million Californian jobs. 
From the period 1987 to 1995, California realized the largest dollar 
growth in merchandise exports--$59.1 billion--of any State. As a member 
of the International Finance Subcommittee, I look forward to working 
with Secretary Daley on the issue of exports and on a host of other 
issues of importance to the businesses in my home State of California.
  In addition to the issues facing California businesses, there are 
also many significant and important issues, and challenges, facing our 
Nation as a whole as we move forward into the 21st century and begin to 
shift from an industrial base to a technological base in an information 
society. Bill Daley has the know-how, vision, and leadership necessary 
to effectively guide us across the bridge into the 21st century.
  Mr. McCAIN. Mr. President, it is the wish of the majority leader that 
we not vote until 10 o'clock. I do not have a lot of additional 
comments to make about the nominee that I did not already make.
  I appreciate the overall broad bipartisan support that has been given 
this nominee. I think he appreciates it as well. Because of the 
importance of working on these issues on a nonpartisan basis, the issue 
that Senator Durbin and Senator Hollings raise about trade are 
accurate.
  I point out to my colleagues, yes, the Department of Commerce and 
Secretary of Commerce has a very important role to play in the conduct 
of trade and fostering relations and helping U.S. businesses compete 
abroad, and I also appreciate the Senator from Illinois' comments about 
the new kind of war we are in. But the problem has been, I point out, 
that there has been a lack of coordination and coherence to the conduct 
of these policies, where on the one hand we send our human rights 
secretary from the State Department, who bashes this particular 
country, in this one case, China, on human rights violations; and then 
our Secretary of Defense goes over, a very close and warm relationship 
with their military establishment--who, also, by the way, run many of 
these companies and corporations in China; and then our Commerce 
Secretary goes over and has an entirely different environment.
  I think the President of the United States understands better, but 
not completely, the absolute requirement that if we are going to have a 
coherent foreign policy, which is probably the most important, single, 
fundamental conduct of foreign and trade policy, then we all have to 
have a coordinated effort, led by the President of the United States. 
Yes, human rights plays an important role in our relations with foreign 
countries; yes, in the furtherance of the United States' national 
security interests; yes, providing access and an equal playing field 
for U.S. companies and corporations to compete, especially in emerging 
nation markets, is important, but there cannot be discordant voices and 
disjointed messages to these people, otherwise they become confused and 
sometimes enraged, because you cannot tell the rulers of China, ``By 
the way, I have no relationship whatever.''
  On one occasion they were told by our State Department that the 
President of Taiwan would not visit the United States of America. Two 
weeks later it was announced that the President of Taiwan was being 
given a visa to visit the United States of America.
  Now, I could argue both sides of that position, but I cannot argue 
for that methodology. There is no excuse for that kind of methodology. 
You either say and make sure that the President of Taiwan visits the 
United States or you say that he will not--one of the two. But 
especially when we are talking about the power shift that is going on 
right now, a transition, with the leader who has taken longer to die 
than the Ayatollah Khomeini, and emerging, if not aggressive, certainly 
assertive behavior in the region, trade has an important role. But it 
has got to be part of an overall foreign policy. That has been and will 
be my major criticism of this administration's conduct of foreign 
policy.
  I am pleased to say from my conversations with Secretary Daley that 
he understands that. He understands how important it is to coordinate 
his efforts with those of the President, the Secretary of State, the 
National Security Adviser and others so we can shape a far more 
effective foreign policy, which at the end of the day will help us 
immeasurably in our efforts in increasing trade than some of the kinds 
of modus operandi we have seen in the

[[Page S829]]

past. I am convinced our nominee has that understanding and that 
commitment.

  I was interested and appreciated my dear friend's, Senator Hollings, 
comments about Mr. Daley's efforts on behalf of NAFTA. I do believe 
that Mr. Daley did a very effective and important job in that effort. I 
know that both my colleagues here on the floor were aware of his effort 
at that particular point, showing his ability to work with the Congress 
of the United States on both sides of the aisle.
  I yield the floor.
  Mr. HOLLINGS. Mr. President, the problem of China is most 
frustrating. I guess the question is, how best do we extend freedom and 
individual rights in a country of that kind? It is very difficult for a 
nation with a 220-year history to tell a culture and nation of 3,000 to 
5,000 years of age what to do and how to do it, particularly a country, 
Mr. President, of 1.2 billion.
  If you have ever dealt with China, you understand immediately that 
human rights begins, first, with hunger. That is the first human right 
in the People's Republic. They have to feed 1.2 billion. The second 
human right is that of housing. The third human right is perhaps 
education. The fourth human right is ours--one man, one vote. If you 
start off on the other end of the spectrum, one man, one vote, you have 
chaos. I say that advisedly.
  I wish I had the time as a southern Governor, because I stand with 
pride--no life was lost, no one was hurt during my 4 years. I 
integrated, as the distinguished president pro tempore's alma mater, 
Clemson University, in a peaceful fashion. We have a track record. We 
know how you have to handle crowds and make sure no one is hurt.
  That approach to China with respect to commercialization and 
capitalization, I think, is going to be better than confrontation. It 
is good to come and say we will not trade with you unless you do A, B, 
and C; however, the others are going to trade with them. It is a 
nonstarter. It just will not work. The Germans, the French, and the 
Japanese are in there like gangbusters, and we cannot use that 
particular tool.
  The bottom line, you can look at democratic India and its approach 
and you can look at the People's Republic and you may reason that 
perhaps the People's Republic approach will extend more housing, more 
feeding, more education in the next 10 or 20 years than the democratic 
India. It is going to be interesting to follow.
  But mind you me, China is there. They feel very strongly with respect 
to Taiwan, to Hong Kong and those possessions that have been taken from 
them, and their stand has been recognized by us in our foreign policy. 
We have to be more realistic in its treatment. I yield the floor.
  The PRESIDING OFFICER. All time of the Senator has expired.
  Mr. McCAIN. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  Mr. McCAIN. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. McCAIN. I ask for the yeas and nays on the nomination of William 
Daley as Secretary of Commerce.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER (Mr. Smith). The question is, Will the Senate 
advise and consent to the nomination of Andrew M. Cuomo, of New York, 
to be Secretary of Housing and Urban Development? On this question, the 
yeas and nays have been ordered, and the clerk will call the roll.
  Mr. NICKLES. I announce that the Senator from Missouri [Mr. Bond], 
the Senator from New York [Mr. D'Amato], and the Senator from Texas 
[Mrs. Hutchison] are necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 95, nays 2, as follows:

                       [Rollcall Vote No. 4 Ex.]

                                YEAS--95

     Abraham
     Akaka
     Allard
     Ashcroft
     Baucus
     Bennett
     Biden
     Bingaman
     Boxer
     Breaux
     Bryan
     Bumpers
     Burns
     Byrd
     Campbell
     Chafee
     Cleland
     Coats
     Cochran
     Collins
     Conrad
     Coverdell
     Craig
     Daschle
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Enzi
     Faircloth
     Feingold
     Feinstein
     Ford
     Frist
     Glenn
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Helms
     Hollings
     Hutchinson
     Inouye
     Jeffords
     Johnson
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     McCain
     McConnell
     Mikulski
     Moseley-Braun
     Moynihan
     Murkowski
     Murray
     Nickles
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Roth
     Santorum
     Sarbanes
     Sessions
     Shelby
     Smith, Bob
     Smith, Gordon
     Snowe
     Specter
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Warner
     Wellstone
     Wyden

                                NAYS--2

     Brownback
     Inhofe
       

                             NOT VOTING--3

     Bond
     D'Amato
     Hutchison
  The nomination was confirmed.
  Mr. LOTT. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. LOTT. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Enzi). Without objection, it is so 
ordered.
  The majority leader is recognized.

                          ____________________