[Congressional Record Volume 143, Number 137 (Monday, October 6, 1997)]
[House]
[Pages H8395-H8397]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               REAUTHORIZATION OF THE EXPORT-IMPORT BANK

  The SPEAKER pro tempore. Pursuant to House Resolution 255 and rule 
XXIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for further consideration of the bill, H.R. 
1370.

                              {time}  1812


                     In the Committee of the Whole

  Accordingly the House resolved itself into the Committee of the Whole 
House on the State of the Union for the further consideration of the 
bill (H.R. 1370) to reauthorize the Export-Import Bank of the United 
States, with Mrs. Emerson, Chairman pro tempore, in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN pro tempore. When the Committee of the Whole rose 
earlier today, amendment No. 7 printed in House report 105-282 offered 
by the gentleman from Minnesota [Mr. Vento] had been disposed of.


          Sequential Votes Postponed In Committee of the Whole

  The CHAIRMAN pro tempore. Pursuant to House Resolution 255, 
proceedings will now resume on those amendments on which further 
proceedings were postponed in the following order: Amendment No. 4 
offered by the gentleman from California [Mr. Rohrabacher] and 
amendment No. 5 offered by the gentleman from California [Mr. 
Rohrabacher].
  The Chair will reduce to 5 minutes the time for any electronic vote 
after the first vote in this series.

                              {time}  1815


               Amendment No. 4 offered by Mr. Rohrabacher

  The CHAIRMAN pro tempore (Mrs. Emerson). The pending business is the 
demand for a recorded vote on the amendment offered by the gentleman 
from California [Mr. Rohrabacher] on which further proceedings were 
postponed and on which the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.
  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was refused.
  So the amendment was rejected.


               Amendment No. 5 offered by Mr. Rohrabacher

  The CHAIRMAN pro tempore. The pending business is the demand for a 
recorded vote on amendment No. 5 offered by the gentleman from 
California [Mr. Rohrabacher] on which further proceedings were 
postponed and on which the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.
  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was refused.
  So the amendment was rejected.
  The CHAIRMAN pro tempore. The question is on the Committee amendment 
in the nature of a substitute, as amended.
  The Committee amendment in the nature of a substitute, as amended, 
was agreed to.
  Mr. PAUL. Mr. Speaker, H.R. 1370, reauthorizing the Export-Import 
Bank, should be rejected for several reasons. The claim to 
constitutionality is dubious. The Bank rewards special interest groups 
with political favors. Reallocating money from the job-producing, 
productive sectors of the economy to the less efficient sectors 
distorts credit allocation. Reauthorization of the Bank is both bad 
economics and bad politics.
  Article I section 8 of the U.S. Constitution enumerates areas over 
which Congress has authority. The ninth and tenth amendments further 
reinforce that powers not vested in the U.S. Congress are reserved to 
the States or to the people. The fifth amendment of the Constitution 
forbids the taking from the people in order to subsidize the business 
of the politically well-connected. It is not through free trade that 
the Government subsidizes the politically well-connected. Rather, it is 
through such organizations as the Eximbank.
  The justification of H.R. 1370 under the general welfare clause of 
the Constitution stretches the imagination of the intent of the 
Founding Fathers. Nowhere in the authors' dreams could the general 
welfare clause be used to tax all American individuals in order to give 
corporate welfare to a few, specific, large political donors. The 
supporters of the bill have not satisfactorily explained how the 
authorization of the Eximbank could be justified as regulating 
commerce. To construe Congress' power to coin money so broadly as to 
include the Federal regulation of the provision of credit by creating 
and perpetuating the Eximbank threatens the intrinsic value of American 
money itself. As former Federal Reserve Chairman Paul Volcker pointed 
out, ``The truly unique power of a central bank, after all, is the 
power to create money, and ultimately the power to create is the power 
to destroy.'' Even if Congress has the constitutional authority to 
destroy money incident to its enumerated authority to coin, this is not 
to say it should do so through the reauthorization of the credit-
misallocating Eximbank.
  The U.S. Government takes money from its citizens through taxes to 
subsidize other nations' purchases. Very often, our Government 
subsidizes the purchases by foreign governments, such as the People's 
Republic of China or other brutal regimes, whose practices many 
Americans find objectionable. In fact, according to the Export-Import 
Bank's 1996 Annual Report, the People's Republic of China was the 
second largest recipient country of U.S. Eximbank loans or loan 
guarantees; American taxpayers subsidized $4.1 billion of mainland 
China's purchases. It is one thing to permit voluntary exchanges 
between citizens of different countries but quite another to coerce the 
American taxpayer to subsidize the purchases of a country whose 
practices offend many. Such practices can best be explained by 
considering the way in which the Eximbank operates.
  Maria L. Haley, one of the five Bank directors, is a long-time friend 
of Bill from Arkansas who ran then-Gov. Clinton's program to attract 
foreign investment in the state. She advocated approval of loans to 
Pauline Kanchanalak (a Thai native living in Virginia) to set up 
Blockbuster video stores in Bangkok, Thailand. The Eximbank has never 
approved financing for franchise rights; retail stores abroad do not 
create U.S. jobs. Ms. Kanchanalak contributed $85,000 on June 18, 1996, 
the same day DNC fundraiser John Huang arranged for her to be invited 
to a White House coffee. Mr.

[[Page H8396]]

Huang called her that day and twice more in August. The DNC eventually 
returned $250,000 of Ms. Kanchanalak's donations because of 
questionable foreign origin. It is clear that the Bank sometimes acts 
as a slush fund to repay political favors--it is, however, not their 
money to lend. It is the taxpayers' money.

  The act of the government taking from its people to return only part 
of it--and that part with strings attached--is another sign of the so-
called Nanny State. The strings are meant to induce the welfare or 
subsidy recipients to act in a manner that another group of 
individuals, through the coercive power of the State, subjectively 
consider desirable. A ``Bully State'' might be a better 
characterization of such a government. The Frank amendment rightfully 
acknowledges this fact and attempts to maintain some form of equality 
of discrimination.
  The section added by Rep. Bernard Sanders makes an effort to address 
the charge that the Bank uses taxpayer dollars from both individuals 
and job-producing small businesses to fund large corporations that 
export American jobs or downsize their workforce here. If money is to 
be taken from the paychecks of our citizens, then it should at least be 
spent on companies showing a commitment to reinvestment and job 
creation in the United States.
  That the Eximbank works at cross-purposes with our stated foreign 
policy objectives is clear. The bank supports state-owned and military-
controlled companies in foreign nations at the same time that our 
foreign policy calls for the privatization of the same companies and 
limitations on the activities of many foreign military companies. 
Amendments correcting these problems should be favorably considered by 
the House.
  The supporters of the Export-Import Bank will point to the few 
examples of claimed jobs created through subsidized exports of the 
beneficiaries of their programs. They will be conspicuously silent on 
the greater number of jobs lost or forgone, dispersed throughout the 
country, due to the increased tax burden levied on the productive 
companies to support the less efficient companies living on government 
subsidies. The few beneficiaries of government largesse are easier to 
identify than the no less real, but harder to identify, losers of the 
government's misguided policies.
  The funding for the Export-Import Bank affords politicians the 
opportunity to pay back their contributors with other people's money. 
By voting for reauthorization of the Bank, those individual politicians 
that depend on the political support of the few large companies 
subsidized at taxpayer expense can return the favor. This Congress 
should put a stop to this special interest favoritism. The 
Congressional Research Service, in a recent report, noted that the 
Bank's ``subsidized export financing raises financing costs for all 
borrowers by drawing on financial resources that otherwise would be 
available for other uses.''
  Small businesses that are the engine of export growth and job 
creation in this country subsidize the larger corporations that are 
shedding jobs in America. This misallocation of credit occurs because 
the larger corporations have the resources to lobby politicians in 
order to seek special favors that are out of reach of the smaller 
businesses. These lobbyists will claim that these special interest 
subsidies are important to the country. Yet with over $600 million 
funding for the Bank, only $20 billion of our total U.S. exports of 
$700 billion are subsidized.
  Arguments that we must reauthorize the Bank because it creates jobs, 
generates economic growth, and counterbalances the subsidies of our 
major trading partners is not supported by objective economic data:

----------------------------------------------------------------------------------------------------------------
                                                                       Percent of     Percent                   
                                                                       country's      rate of    Percent rate of
                              Country                                   exports       real GDP     unemployment 
                                                                       subsidized    growth \2\        \2\      
--------------------------------------------------------------------------\1\-----------------------------------
Japan..............................................................            32           0.7            3.1  
France.............................................................            18           2.2           11.6  
Canada.............................................................             7           2.2            9.5  
Germany............................................................             5           2.1            9.4  
Italy..............................................................             4           3.0             12  
U.K................................................................             3           2.4            8.2  
U.S.A..............................................................             2           2.0            5.6  
----------------------------------------------------------------------------------------------------------------
\1\ Export-Import Bank, 1995 figures.                                                                           
\2\ Bureau of Economic and Business Affairs, 1995 figures.                                                      


  It would be difficult for anyone but the most committed statists to 
argue that the dirigiste wonders of government bureaucrats could be 
demonstrated by macroeconomic statistics. However, if there is a broad 
relationship, it is directly inverse to the relationship the central 
planners envision.
  In 1995, according to Export-Import Bank data, Japan subsidized 32 
percent of its exports and France subsidized 18 percent while the 
United States only aided 2 percent of total exports. However in the 
same year, according to figures from the Bureau of Economic and 
Business Affairs, Japan's real growth in Gross Domestic Product 
registered a paltry 0.7 percent against a solid 2.0 percent here in the 
U.S., and France had an unemployment rate of 11.6 percent, more than 
double the American rate of only 5.6 percent. Perhaps, following the 
logic of the Bank's supporters, we should increase the portion of our 
subsidized exports to nine times the current level (with the 
accompanying tax increases) to double our unemployment rate, and, if 
that isn't desirable, we could double that rate of subsidy (again with 
the increased tax burden) to cut our economic growth rate to one-third 
its current level. We should not jump off the bridge of special 
interest corporativism just because our competitors do.
  ``Corporate welfare does not work anywhere in the world. It does not 
work because it penalizes a country's winners with excess taxes in 
order to fund that country's losers with inefficiently run government 
programs,'' testified Dr. T.J. Rodgers, President and C.E.O. of Cypress 
Semiconductor Corporation, before Congress in 1995. `` `They've got 
subsidies; we need subsidies,' is exactly wrong. America will be much 
more competitive on a relative basis if we allow the nations with whom 
we compete to squander their taxpayer's money, while we encourage our 
companies to win without subsidies. It's like the Olympics: there comes 
the day when an athlete must walk alone into the arena of competition. 
The government cannot lift the weights and run the miles that are 
required to be a champion--only an individual can.''
  The CHAIRMAN pro tempore. Under the rule, the Committee rises.
  Accordingly the Committee rose; and the Speaker pro tempore [Mr. 
Shaw] having assumed the chair, Mrs. Emerson, Chairman pro tempore of 
the Committee of the Whole House on the State of the Union, reported 
that the Committee, having had under consideration the bill (H.R. 1370) 
to reauthorize the Export-Import Bank of the United States, pursuant to 
House Resolution 255, she reported the bill back to the House with an 
amendment adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole? If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.

  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. SMITH of Michigan. Mr. Speaker, I object to the vote on the 
ground that a quorum is not present and make the point of order that a 
quorum is not present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 378, 
nays 38, not voting 17, as follows:

                             [Roll No. 492]

                               YEAS--378

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Archer
     Bachus
     Baesler
     Baker
     Baldacci
     Ballenger
     Barcia
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berman
     Berry
     Bilbray
     Bishop
     Blagojevich
     Bliley
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bono
     Borski
     Boswell
     Boucher
     Boyd
     Brady
     Brown (CA)
     Brown (OH)
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Cannon
     Capps
     Cardin
     Carson
     Castle
     Chambliss
     Chenoweth
     Christensen
     Clay
     Clayton
     Clement
     Clyburn
     Collins
     Combest
     Condit
     Conyers
     Cook
     Cooksey
     Costello
     Coyne
     Cramer
     Crane
     Crapo
     Cubin
     Cummings
     Cunningham
     Danner
     Davis (FL)
     Davis (IL)
     Davis (VA)
     Deal
     DeGette
     Delahunt
     DeLauro
     DeLay
     Dellums
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Doyle
     Dreier
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Ensign
     Eshoo
     Etheridge
     Evans
     Everett
     Ewing
     Farr
     Fattah
     Fawell
     Fazio
     Filner
     Flake
     Foley
     Forbes
     Ford
     Fowler
     Fox
     Frank (MA)
     Franks (NJ)
     Frelinghuysen
     Frost
     Furse
     Gallegly
     Gejdenson
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Goode
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Granger
     Green
     Gutierrez

[[Page H8397]]


     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hansen
     Harman
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hefley
     Hefner
     Herger
     Hill
     Hinchey
     Hinojosa
     Hobson
     Holden
     Hooley
     Horn
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson, E. B.
     Johnson, Sam
     Kanjorski
     Kaptur
     Kasich
     Kelly
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     Kim
     Kind (WI)
     King (NY)
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     Kucinich
     LaFalce
     LaHood
     Lampson
     Lantos
     Latham
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Lowey
     Lucas
     Luther
     Maloney (CT)
     Manton
     Manzullo
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDade
     McGovern
     McHale
     McHugh
     McInnis
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Metcalf
     Mica
     Millender-McDonald
     Miller (CA)
     Minge
     Mink
     Moakley
     Mollohan
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Myrick
     Nadler
     Neal
     Nethercutt
     Neumann
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Oxley
     Packard
     Pallone
     Pappas
     Parker
     Pascrell
     Pastor
     Paxon
     Payne
     Pease
     Pelosi
     Peterson (MN)
     Peterson (PA)
     Pickering
     Pickett
     Pitts
     Pomeroy
     Porter
     Portman
     Poshard
     Price (NC)
     Pryce (OH)
     Quinn
     Rahall
     Ramstad
     Redmond
     Regula
     Reyes
     Riggs
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogers
     Ros-Lehtinen
     Rothman
     Roukema
     Roybal-Allard
     Rush
     Ryun
     Sabo
     Salmon
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Schaefer, Dan
     Schaffer, Bob
     Scott
     Serrano
     Sessions
     Shaw
     Shays
     Sherman
     Shimkus
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Snyder
     Souder
     Spence
     Spratt
     Stabenow
     Stark
     Stenholm
     Stokes
     Strickland
     Stump
     Stupak
     Sununu
     Talent
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thompson
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tierney
     Torres
     Towns
     Traficant
     Turner
     Upton
     Velazquez
     Vento
     Visclosky
     Walsh
     Waters
     Watkins
     Watt (NC)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     White
     Wicker
     Wise
     Wolf
     Woolsey
     Wynn
     Yates
     Young (AK)
     Young (FL)

                                NAYS--38

     Andrews
     Armey
     Barr
     Bass
     Bilirakis
     Bonior
     Campbell
     Chabot
     Coble
     Cox
     DeFazio
     Duncan
     Ganske
     Hayworth
     Hilleary
     Hoekstra
     Hostettler
     Johnson (WI)
     Jones
     Largent
     McDermott
     McIntosh
     Miller (FL)
     Paul
     Petri
     Radanovich
     Rogan
     Rohrabacher
     Royce
     Sanford
     Scarborough
     Sensenbrenner
     Shadegg
     Smith (MI)
     Solomon
     Stearns
     Wamp
     Watts (OK)

                             NOT VOTING--17

     Brown (FL)
     Coburn
     Foglietta
     Gephardt
     Gilman
     Gonzalez
     Greenwood
     Hilliard
     Maloney (NY)
     Owens
     Pombo
     Rangel
     Schiff
     Schumer
     Smith (OR)
     Weygand
     Whitfield

                              {time}  1836

  Mr. WAMP changed his vote from ``yea'' to ``nay.''
  Mr. GILLMOR, Mrs. CHENOWETH, and Mr. EVERETT changed their vote from 
``nay'' to ``yea.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.


                          personal explanation

  Mr. GILMAN. Mr. Speaker, I regret that I was delayed on my arrival to 
Washington from New York, which prevented me from voting on rollcall 
No. 490. Had I been able to vote I would have voted ``aye.''
  I was also inadvertently detained in voting on rollcall No. 492. Had 
I been Present, I would have voted ``aye.''
  Mr. CASTLE. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 1026) to reauthorize the Export-
Import Bank of the United States, and ask for its immediate 
consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Delaware?
  There was no objecton.
  The Clerk read the Senate bill, as follows:

                                S. 1026

       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 ``Export-Import Bank 
     Reauthorization Act of 1997''.

     SEC. 2. EXTENSIONS OF AUTHORITY.

       Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 
     635f) is amended by striking ``1997'' and inserting ``2001''.

     SEC. 3. TIED AID CREDIT FUND AUTHORITY.

       (a) Section 10(c)(2) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635i-3(c)(2)) is amended by striking ``through'' 
     and all that follows through ``1997''.
       (b) Section 10(e) of such Act (12 U.S.C. 635i-3(3)) is 
     amended by striking the first sentence and inserting the 
     following: ``There are authorized to be appropriated to the 
     Fund such sums as may be necessary to carry out the purposes 
     of this section.''.

     SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE 
                   EXPORT OF NONLETHAL DEFENSE ARTICLES OR 
                   SERVICES THE PRIMARY END USE OF WHICH WILL BE 
                   FOR CIVILIAN PURPOSES.

       Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 
     Stat. 4376) is amended by striking ``1997'' and inserting 
     ``2001''.

     SEC. 5. OUTREACH TO COMPANIES.

       Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635(b)(1)) is amended by adding at the end the 
     following:
       ``(I) The Chairman of the Bank shall undertake efforts to 
     enhance the Bank's capacity to provide information about the 
     Bank's programs to small and rural companies which have not 
     previously participated in the Bank's programs. Not later 
     than 1 year after the date of the enactment of this 
     subparagraph, the Chairman of the Bank shall submit to 
     Congress a report on the activities undertaken pursuant to 
     this subparagraph.''.


                      Motion Offered by Mr. Castle

  Mr. CASTLE. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Mr. Castle moves to strike all after the enacting clause of 
     S. 1026 and insert in lieu thereof the provisions of H.R. 
     1370, as passed by the House.

  The motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.
  A similar House bill (H.R. 1370) was laid on the table.


                        Appointment of Conferees

  Mr. CASTLE. Mr. Speaker, I ask unanimous consent that the House 
insist on its amendment to S. 1026 and request a conference with the 
Senate thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Delaware? The Chair hears none and, without objection, 
appoints the following conferees:
  Messrs. Leach, Castle, Bereuter, LaFalce and Flake.
  There was no objection.

                          ____________________