[Congressional Record Volume 143, Number 96 (Wednesday, July 9, 1997)]
[Senate]
[Pages S7035-S7038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INVESTIGATION BY GOVERNMENTAL AFFAIRS COMMITTEE

  Mrs. HUTCHISON. Mr. President, I rise today to discuss the solemn 
importance of the investigative hearings that have just begun by the 
Senate Governmental Affairs Committee under the leadership of the 
distinguished chairman, Senator Thompson, and the distinguished ranking 
member, Senator Glenn.
  While it is unfortunate that some in Congress have attempted to 
portray this investigation as an effort by one side to make political 
hay, I want to briefly discuss why these hearings are crucial for all 
Americans of whatever party or ideology.
  Through the hard work and bipartisan effort of the Governmental 
Affairs Committee, there has been evidence uncovered and indications of 
much more evidence to come that our American political system was put 
up for sale and that an alarming number of foreign interests were ready 
and willing to buy. While there have been indications of a wide array 
of illegal activities in connection with the 1996 Presidential 
election, much of which the public is aware, Senator Thompson yesterday 
indicated that there may be much the American people do not yet know.
  The chairman stated yesterday that his committee has evidence that 
points to a concerted effort by the Chinese Government to improperly or 
illegally influence American foreign policy toward that country and 
toward Taiwan. Mr. President, if this is, indeed, the case, then in my 
view the American people must know the truth. They have a right to know 
whether the U.S. Government and U.S. officials who were charged with 
the duty of serving the interests of the American people instead served 
their own special interests and the interests of others.
  The U.S. Senate is attempting to find the truth through this 
investigation and I am hopeful and confident that it will do so.
  Central to the investigation at this point is a name now well-known 
to the American people, John Huang. Mr. Huang has been a highly paid 
executive of a major foreign bank. He was appointed to be a high-level 
trade official at the Commerce Department with access to an array of 
classified documents. And finally, he was for a time a key fundraiser 
for the Democratic National Committee. While alone each of these 
positions is laudable, in part what this investigation seeks to 
determine is whether or not Mr. Huang

[[Page S7036]]

served in all of these capacities at the same time, which would be a 
crime.

  Although it is becoming increasingly apparent that Mr. Huang did not 
act alone in his efforts to serve as an international influence broker, 
it is nevertheless interesting to discover that of the $3.4 million in 
donations to the Democratic Party that Mr. Huang raised, the Democratic 
Party has returned almost half of that money, $1.6 million, to the 
donors because the contributions were probably made illegally.
  Now Mr. Huang has asked the Senate for immunity from future 
prosecution if he testifies before the Governmental Affairs Committee. 
Whether Mr. Huang is ultimately granted immunity or not, his conduct 
and that of dozens of others who have been subpoenaed must be 
uncovered. This will inevitably involve a give-and-take process between 
the majority and the minority on the committee. That is to be expected, 
given the sensitive nature of this inquiry. But simply because the 
investigation touches on sensitive issues does not mean that it should 
not move forward. In fact, the history of our country has been one of 
constant vigilance against the kind of secret manipulation of power 
that is at the center of this investigation. Only by fully exposing 
wrongdoing can we be satisfied that all that can be done is being done 
to tell those who would seek to thwart our system that America's 
foreign and domestic policy is not for sale.
  Mr. President, in addition to the critical need to expose the illegal 
activities of those in positions of authority in our Government, let me 
also say that we in Congress should act to address the related issue of 
campaign finance reform. Let me be clear: the Governmental Affairs 
Committee and this Senate have the duty and obligation to immediately 
and fully investigate allegations of criminal wrongdoing with regard to 
the most recent Federal election. But once the criminal investigation 
is complete, I am confident that the evidence brought out at these 
hearings will help shed light on how we might reform our campaign 
fundraising laws to prevent many of the abuses of the system that this 
investigation will also highlight.
  I have introduced a bill in the Senate that I believe can serve as a 
vehicle to not only achieve consensus on this important and contentious 
issue, but that will put a stop to the types of excesses and abuses of 
our system that have eroded the integrity and public confidence from 
our Federal political system.
  For example, my bill specifically prohibits contributions from any 
foreign entity or any foreign person, including green card holders who 
are not citizens of this country. I believe that effecting this change 
of current law would be a positive result of what we have learned from 
the 1996 Presidential election. It is simply not healthy for our 
democracy to have foreign influence in the election process. That is a 
sacred right and a sacred responsibility that the American people have, 
to democratically elect our President, our Congress, and our other 
State and local leaders. Anything that impinges on that right is not 
warranted, and I hope we will be able to take action soon to prevent 
this type of conduct from ever happening again.
  In addition to the issue of foreign influence in our election 
process, I am hopeful that the Governmental Affairs hearings, which I 
think are being conducted in a very fair and bipartisan way, will also 
tell us what other things we should do to make sure that our campaign 
laws protect the integrity of our election system.
  Mr. President, I want to thank the distinguished chairman of the 
Republican conference, Senator Mack, for asking us to come forward and 
talk today about the importance of this investigation and the 
importance of the integrity of our American election system.
  I yield the floor to the Senator from Florida.
  The PRESIDING OFFICER. The Senator from Florida.
  Mr. MACK. Mr. President, I want to thank the Senator from Texas for 
her comments this morning and for her involvement in expressing the 
importance of the actions on the part of the Governmental Affairs 
Committee. I also want to express my support for the committee itself 
and the inquiry that began some 6 months ago. As elected officials, it 
is our duty not only to change the laws when necessary but to abide by 
them. The hearings that began in the Governmental Affairs Committee 
yesterday are an inquiry into just how well the Clinton administration 
abided by the law during the last election cycle. The Democrat Party 
and the White House would like the American public to think that they 
did nothing different than anyone else, and that everybody does it and 
therefore we must change the law.
  That just simply is not true. No, not everybody does it. Before we 
begin considering what new laws to pass, we ought to examine who has 
violated the ones we have on the books now. In my view, the 
administration will have no standing to debate the issue of campaign 
finance reform until they prove that we can live and that they can live 
within the law as it currently stands. It does little good to create 
new laws if our leaders don't follow them with principle, integrity, 
and some semblance of morality. We ought to have leaders who adhere to 
the spirit of the laws--rather than to push the envelope of propriety.

  Unfortunately, there are credible allegations that the Clinton 
administration exhibited precious little principle, integrity, or 
morality in the conduct of their last campaign. The committee will be 
looking into whether the Clinton administration knowingly accepted 
illegal foreign contributions, allowed money laundering to occur, or 
actively engaged in the unlawful solicitation of campaign donations in 
Federal buildings. Worst of all, the committee must determine the true 
nature and extent of what appears to be a calculated attempt by the 
Chinese Government to buy influence in the last election.
  Senator Thompson's committee has uncovered evidence of a detailed 
plan by China to illegally increase their influence over the United 
States legal process. They found that China has invested substantial 
sums of money in this effort and that the White House was made aware of 
the plan prior to the election but did nothing to prevent it from 
succeeding. Disturbingly, the Chinese plan continues today. The 
committee must now determine who knew or should have known about this 
plan and how it came to be implemented.
  I commend Senator Thompson and his team for uncovering this shocking 
infiltration of our electoral system by another government. Judging by 
the level of complaining by Democrats, he must be close to the truth. 
When you get right down to it, these hearings are about the lack of 
shame in this administration. No one in this administration is ashamed 
of the fact that they may have broken the laws to win the election. No 
one in this administration seems to be ashamed of the fact that the 
President and Vice President reportedly leaned on donors from the 
comfort of the White House. That is illegal. And no one in this 
administration seems to be ashamed of the fact that overnight stays in 
the Lincoln bedroom were for sale to the highest bidder. The White 
House should not be for sale. No one in this administration seems to be 
ashamed of the fact that poor religious people were preyed upon for 
illegal donations. They should be beyond such political manipulation. 
No one in this administration seems to be ashamed of the fact that 
fundraising safeguards were jettisoned so that illegal foreign cash 
came rolling in with no questions asked. Compliance with our country's 
election laws is not optional. No one in this administration seems to 
be ashamed of the fact that a midlevel political appointee potentially 
compromised our national security.
  He should never have been in a position to do so.
  This administration seems incapable of being ashamed of any of this. 
Rather, they continue to rationalize their actions in an attempt to 
deflect the negative publicity with hollow calls for campaign finance 
reform. Unlike others who attempt to tear down our current system, I 
hope Senator Thompson and the members of the Governmental Affairs 
Committee are able to restore some confidence in our system through 
these hearings. Calling people to publicly account for their wrongdoing 
is the first step in that journey.
  Finally, I want to thank Senator Thompson for his forbearance. He has

[[Page S7037]]

shown great tolerance and conducted himself like a gentleman, at times 
when courtesy has been hard to muster. The administration continues to 
stonewall the committee on producing documents; witnesses have claimed 
their fifth amendment privilege; targets have fled the country; and a 
paper trail consisting of millions of pages have been left for the 
committee to unravel.
  Today, I express my gratitude to him for taking on this unpleasant 
job, and I wish the committee members patience and good judgment in 
exercising their duties to uncover what has heretofore been covered up.
  I thank the Chair and I yield the floor.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. MURKOWSKI. Mr. President, I believe there is a special order 
pending.
  The PRESIDING OFFICER. The Chair advises the Senator from Alaska that 
we are now in a period of morning business.
  Mr. MURKOWSKI. I thank the Chair.
  Mr. President, today is the first day of testimony in the Senate 
Governmental Affairs special investigation of the 1996 Federal election 
campaign contributions. There is, of course, but one purpose to this 
investigation. That purpose is to review campaign financing practices 
during the 1996 election to determine whether Federal laws were 
violated.
  I think it is fair to state that Federal campaign laws in question 
are relatively straightforward.
  It is illegal under U.S. election law for a noncitizen to contribute 
to campaigns;
  It is illegal for anyone to contribute to a campaign in someone 
else's name;
  And, it is illegal to solicit campaign funds on Federal property.
  Yesterday, at the opening of these hearings, Chairman Thompson 
announced exceedingly alarming evidence of violations of these Federal 
laws. The gravest of these violations is an alleged covert plan by the 
Chinese Government to subvert the 1996 United States election process.
  I note, Mr. President, that was headlined in the Washington Post this 
morning.
  The chairman indicated that the plan implemented a series of alleged 
illegal efforts by high members of the Chinese Government to influence 
United States policy by giving substantial sums of money. The intent 
had to be clear: To cultivate relations with the White House to 
influence foreign policy.
  Two key figures in the committee's investigation are John Huang of 
the Lippo Group and Charlie Trie, a Macao-based campaign fundraiser. 
Between Huang and Trie, nearly $4 million in questionable funds were 
raised. Over half of those funds have already been determined to be 
improper contributions and have appropriately been returned by the 
Democratic National Committee.
  This allegation goes to the very heart of the workings of our 
Government, and questions must be answered.
  First would be: What efforts were used by foreign nationals to 
influence U.S. policy?
  Second, to what extent was the U.S. political process infiltrated?
  Third, ultimately, was the United States compromised at any 
particular time?
  Additionally, these hearings will focus on the disturbing use of 
President Clinton's perquisites of the Presidency as a fundraising 
tool.
  Even though Federal law precludes campaign fundraising on Federal 
property, the committee has revealed the following information.
  During the 5 years that President Clinton has resided in the White 
House, an astonishing 938 guests have spent the night in the Lincoln 
bedroom.
  This figure is an unprecedented escalation of past Presidential 
practices.
  Presidential historian Richard Norton Smith stated that there has 
``never been anything of the magnitude of President Clinton's use of 
the White House for fundraising purposes * * * it's the selling of the 
White House.''
  On March 15, 1997, the White House counsel, Lanny Davies, stated, 
``It's fair to say these additional functions at the White House were 
for the purpose of encouraging support for the President's campaign, 
including financial support.''
  These overnight guests at the Clinton White House donated at least $6 
million to the Democratic National Committee.
  Additionally, President Clinton hosted some 103 Presidential coffees. 
Guests at these coffees, which included a convicted felon and a Chinese 
businessman who heads an arms-trading company, donated some $27 million 
to the Democratic National Committee.
  White House officials have denied that such events were planned with 
the intention of raising specific amounts of money. However, President 
Clinton's Chief of Staff, Harold Ickes--who will testify before the 
committee--recently turned over a large number of documents that show 
figures for both expected and actual donations from nearly every White 
House coffee.
  Here's a comparison. President Bush hosted one Presidential coffee. 
No money was raised. And I am told the cost was $6.24 cents.
  The accuracy of that I will leave to the historians.
  But, finally, Mr. President, on March 11, 1997, this body voted 
unanimously to hold this investigation.
  I commend Chairman Thompson for his commitment to Congress and to the 
constitutional duty of the oversight process; that is, to provide the 
American people with a fair, unfiltered, and bipartisan view of the 
1996 campaign practices. The American public deserve no less.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. INHOFE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Thomas). Without objection, it is so 
ordered.
  Mr. INHOFE. Mr. President, I have been in the chair for the last few 
minutes listening to some of the comments that have been made. I would 
like to read one paragraph that I saw in yesterday's Wall Street 
Journal.
  I would like to ask everyone, Mr. President, to listen very 
carefully, because we are only talking about three of a long list of 
things that are being investigated right now as far as the alleged 
transgression of the President.
  Yesterday's Wall Street Journal has the editorial of which this is 
just one paragraph:

       Travelgate, trumped-up Billy Dale prosecution, the secret 
     health-care task force, the 900 FBI files and bouncer/
     security chief Craig Livingstone, alerts to the White House 
     from high Treasury officials on Resolution Trust Corporation 
     investigations, the guy who told the congressional committee 
     he lied to his diary, the brightest minds in the Democratic 
     Party suffering massive memory loss at congressional 
     hearings, the ``lost'' Rose Law Firm billing records, Webster 
     Hubbell's passage of the Justice to jail, Vince Foster's 
     torment, the Lincoln Bedroom rented out, Charlie Trie on the 
     run, John Huang taking the fifth, Jim and Susan McDougal 
     convicted, the Buddhist monastery/money laundry, the drug 
     dealers let in for the White House photo-ops, the routinely 
     cavalier treatment of legal and judicial procedures, and 
     independent counsels appointed for three members of the 
     Cabinet, one sitting American President and, for the first 
     time in history, one First Lady.
       Everyone does it? We don't think so. At least up to now.

  In this long list of alleged transgressions, the investigation right 
now is really only dealing with three things.
  It is interesting for me that every time something comes up 
concerning campaign contributions that have been taken illegally, the 
President comes out and says we need campaign finance reform.
  I would only comment, as did the Senator from Alaska, Senator 
Murkowski. How do we know that we need reform of campaign contributions 
until we live under the laws that we have today?
  Currently it is illegal--under our current law--to accept foreign 
money from foreigners. It is illegal to launder money. It is illegal to 
solicit or accept money on Federal property.

[[Page S7038]]

  That is what this is all about.
  So I just hope as the debate goes on about campaign finance reform 
that we adopt an attitude that we should comply with the laws that are 
on the books right now and see how far that goes to resolving the 
problems.
  Mr. President, I see that there is no other Senator seeking time, so 
I ask unanimous consent that I be recognized as if in morning business 
on another matter.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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