[Congressional Record Volume 144, Number 27 (Friday, March 13, 1998)]
[Senate]
[Pages S1948-S1957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. REED (for himself, Mrs. Boxer, and Mr. Chafee):
S. 1755. A bill to amend the Internal Revenue Code of 1986 to
disallow tax deductions for advertising, promotional, and marketing
expenses relating to tobacco product use unless certain advertising
requirements are met; to the Committee on Finance.
the children's health preservation and tobacco advertising compliance
act
Mr. REED. Mr. President, I rise today to formally introduce
legislation that would amend the Internal Revenue Code to deny tobacco
companies any tax deduction for their advertising and promotional
expenses when those ads are aimed at America's most impressionable
group, children.
This bill addresses a key element in our ongoing public debate on
tobacco: the industry's ceaseless efforts to market to children. My
legislation can stand on its own, or can easily be incorporated into a
comprehensive tobacco bill. With or without congressional action on the
state attorney generals' tobacco settlement, it is time for Congress to
put a stop to the tobacco industry's practice of luring children into
untimely disease and death.
I am pleased to be joined today in introducing this legislation with
Senators Boxer and Chafee, and I urge the rest of my colleagues to join
us in this effort to protect America's children.
Mr. President, I ask unanimous consent that the full text of the bill
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1755
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 ``Children's Health
Preservation and Tobacco Advertising Compliance Act''.
SEC. 2. DISALLOWANCE OF TAX DEDUCTIONS FOR CERTAIN
ADVERTISING, PROMOTION, AND MARKETING EXPENSES
RELATING TO TOBACCO PRODUCT USE.
(a) In General.--Part IX of subchapter B of chapter 1 of
subtitle A of the Internal Revenue Code of 1986 (relating to
items not deductible) is amended by adding at the end the
following:
``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR CERTAIN TOBACCO
ADVERTISING, PROMOTION, AND MARKETING EXPENSES.
``(a) In General.--No deduction shall be allowed under this
chapter for any taxable year for any expenditure relating to
advertising, promoting, or marketing tobacco products if such
advertising, promoting, or marketing, or such expenditure is
prohibited under the following subsections.
``(b) Prohibition of Certain Advertising.--
``(1) Prohibition on outdoor advertising.--
``(A) In general.--No manufacturer, distributor, or
retailer may use any form of outdoor tobacco product
advertising, including billboards, posters, or placards.
``(B) Stadia and arenas.--Except as otherwise provided in
this section, a manufacturer, distributor, or retailer shall
not advertise tobacco products in any arena or stadium where
athletic, musical, artistic, or other social or cultural
events or activities occur.
``(2) Prohibition on use of human images and cartoons.--No
manufacturer, distributor, or retailer may use a human image
or a cartoon character or cartoon-type character in its
advertising, labeling, or promotional material with respect
to a tobacco product.
``(3) Prohibition on advertising on the internet.--No
manufacturer, distributor, or retailer may use the Internet
to advertise tobacco products unless such an advertisement is
inaccessible in or from the United States.
``(4) Prohibition on point of sale advertising.--
``(A) In general.--Except as otherwise provided in this
paragraph, no manufacturer, distributor, or retailer may use
point of sale advertising of tobacco products.
``(B) Adult only stores and tobacco outlets.--Subparagraph
(A) shall not apply to point of sale advertising at adult
only stores and tobacco outlets.
``(C) Permissible advertising.--
``(i) In general.--Each manufacturer of tobacco products
may display not more than 2 separate point of sale
advertisements in or at each location at which tobacco
products are offered for sale.
``(ii) Retailers.--No manufacturer, distributor, or
retailer may enter into any arrangement with a retailer to
limit the ability of the retailer to display any form of
permissible point of sale advertisement or promotional
material originating with another manufacturer, distributor,
or retailer.
``(D) Limitations.--
``(i) In general.--A point of sale advertisement permitted
under this paragraph shall be comprised of a display area
that is not larger than 576 square inches (either
individually or in the aggregate) and shall consist only of
black letters on a white background or other recognized
typographical marks. Such advertisement shall not be attached
to nor located within 2 feet of any fixture on which candy is
displayed for sale.
``(ii) Audio and video formats.--Audio and video
advertisements otherwise permitted under this section may be
distributed to individuals who are 18 years of age or older
at point of sale but may not be played or viewed at such
point of sale.
``(iii) Display fixtures.--Display fixtures in the form of
signs consisting of brand name and price and not larger than
2 inches in height are permitted.
``(c) Additional Restrictions.--
``(1) Restriction on product names.--A manufacturer shall
not use a trade or brand name of a nontobacco product as the
trade or brand name for a cigarette or smokeless tobacco
product, except for a tobacco product whose trade or brand
name was on both a tobacco product and a nontobacco product
that were sold in the United States on January 1, 1998.
``(2) Advertising limit actions.--
``(A) In general.--A manufacturer, distributor, or retailer
may in accordance with this section, disseminate or cause to
be disseminated advertising or labeling which bears a tobacco
product brand name (alone or on conjunction with any other
word) or any other indicia of tobacco product identification
only in newspapers, in magazines, in periodicals or other
publications (whether periodic or limited distribution), on
billboards, posters and placards in accordance with
subsection (b)(1), in nonpoint of sale promotional material
(including direct mail), in point-of-sale promotional
material, and in audio or video formats delivered at a point-
of-sale.
``(B) Limitation.--A manufacturer, distributor, or retailer
that intends to disseminate, or to cause to be disseminated,
advertising or labeling for a tobacco product in a medium
that is not described in subparagraph (A) shall notify the
Secretary of Health and Human Services not less than 30 days
prior to the date on which such medium is to be used. Such
notice shall describe the medium and discuss the extent to
which the advertising or labeling may be seen by individuals
who are under 18 years of age.
``(C) Action by secretary.--Not later than 30 days after
the date on which the Secretary receives a notice under
subparagraph (B), the Secretary shall make a determination
with respect to the action to be taken concerning such
notice.
``(3) Restriction on placement in entertainment media.--No
payment shall be made by any manufacturer, distributor, or
retailer for the placement of any tobacco product or tobacco
product package or advertisement--
[[Page S1949]]
``(A) as a prop in any television program or motion picture
produced for viewing by the general public; or
``(B) in a video or on a video game machine.
``(4) Restrictions on glamorization of tobacco products.--
No direct or indirect payment shall be made, or consideration
given, by any manufacturer, distributor, or retailer to any
entity for the purpose of promoting the image or use of a
tobacco product through print, film or broadcast media that
appeals to individuals under 18 years of age or through a
live performance by an entertainment artist that appeals to
such individuals.
``(d) Format and Content Requirements for Labeling and
Advertising.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), each manufacturer, distributor, or retailer advertising
or causing to be advertised, disseminating or causing to be
disseminated, any labeling or advertising for a tobacco
product shall use only black text on a white background.
``(2) Certain advertising excepted.--
``(A) In general.--Paragraph (1) shall not apply to
advertising--
``(i) in any facility where vending machines and self-
service displays are located if the advertising involved--
``(I) is not visible from outside of the facility; and
``(II) is affixed to a wall or fixture in the facility;
``(ii) that appears in any publication (whether periodic or
limited distribution) that is an adult publication.
``(B) Adult publication.--For purposes of subparagraph
(A)(ii), the term `adult publication' means a newspaper,
magazine, periodical, or other publication--
``(i) whose readers under 18 years of age constitute 15
percent or less of the total readership as measured by
competent and reliable survey evidence; and
``(ii) that is read by fewer than 2,000,000 individuals who
are under 18 years of age as measured by competent and
reliable survey evidence.
``(3) Audio or video formats.--Each manufacturer,
distributor or retailer advertising or causing to be
advertised any advertising for a tobacco product in an audio
or video format shall comply with the following:
``(A) With respect to an audio format, the advertising
shall be limited to words only with no music or sound
effects.
``(B) With respect to a video format, the advertising shall
be limited to static black text only on a white background.
Any audio with the video advertising shall be limited to
words only with no music or sound effects.
``(e) Ban on Non-Tobacco Items and Services, Contests and
Games of Chance, and Sponsorship of Events.--
``(1) Ban on all non-tobacco merchandise.--No manufacturer,
importer, distributor, or retailer shall market, license,
distribute, sell or cause to be marketed, licensed,
distributed or sold any item (other than tobacco products) or
service, which bears the brand name (alone or in conjunction
with any other word), logo, symbol, motto, selling message,
recognizable color or pattern of colors, or any other indicia
of product identification similar or identifiable to those
used for any brand of tobacco products.
``(2) Gifts, contests, and lotteries.--No manufacturer,
distributor, or retailer shall offer or cause to be offered
to any person purchasing tobacco products any gift or item
(other than a tobacco product) in consideration of the
purchase of such products, or to any person in consideration
of furnishing evidence, such as credits, proofs-of-purchase,
or coupons, of such a purchase.
``(3) Sponsorship.--
``(A) In general.--No manufacturer, distributor, or
retailer shall sponsor or cause to be sponsored any athletic,
musical, artistic or other social or cultural event, or any
entry or team in any event, in which the brand name (alone or
in conjunction with any other word), logo, motto, selling
message, recognizable color or pattern of colors, or any
other indicia of product identification similar or identical
to those used for tobacco products is used.
``(B) Use of corporate name.--A manufacturer, distributor,
or retailer may sponsor or cause to be sponsored any
athletic, musical, artistic, or other social or cultural
event in the name of the corporation which manufactures the
tobacco product if--
``(i) both the corporate name and the corporation were
registered and in use in the United States prior to January
1, 1995; and
``(ii) the corporate name does not include any brand name
(alone or in conjunction with any other word), logo, symbol,
motto, selling message, recognizable color or pattern of
colors, or any other indicia or product identification
identical or similar to, or identifiable with, those used for
any brand of tobacco products.
``(f) Definitions.--For purposes of this section--
``(1) In general.--Any term used in this section which is
also used in section 5702 shall have the same meaning given
such term by section 5702.
``(2) Brand.--The term `brand' means a variety of a tobacco
product distinguished by the tobacco used, tar content,
nicotine content, flavoring used, size, filtration, or
packaging.
``(3) Distributor.--The term `distributor' means any person
who furthers the distribution of tobacco products, whether
domestic or imported, at any point from the original place of
manufacture to the person who sells or distributes the
product to individuals for personal consumption. Such term
shall not include common carriers.
``(4) Package.--The term `package' means a pack, box,
carton, or container of any kind in which tobacco products
are offered for sale, sold, or otherwise distributed to
consumers.
``(5) Point of sale.--The term `point of sale' means any
location at which an individual can purchase or otherwise
obtain tobacco products for personal consumption.
``(6) Point of sale advertising.--The term `point of sale
advertising' means all printed or graphical materials bearing
the brand name (alone or in conjunction with any other word),
logo, motto, selling message, recognizable color or pattern
of colors, or any other indicia of product identification
similar or identical to those used for tobacco products,
which, when used for its intended purpose, can reasonably be
anticipated to be seen by customers at a location at which
tobacco products are offered for sale.
``(7) Retailer.--The term `retailer' means any person who
sells tobacco products to individuals for personal
consumption, or who operates a facility where vending
machines or self-service displays are located.
``(8) Video.--The term `video' means an audiovisual work
produced for viewing by the general public, such as a
television program, a motion picture, a music video, and the
audiovisual display of a video game.
``(9) Video game.--The term `video game' means any
electronic amusement device that utilizes a computer,
microprocessor, or similar electronic circuitry and its own
cathode ray tube, or is designed to be used with a television
set or a monitor, that interacts with the user of the
device.''.
(b) Conforming Amendment.--The table of sections for such
part IX is amended by adding after the item relating to
section 280H the following:
``Sec. 280I. Disallowance of deduction for certain tobacco
advertising, promotion, and marketing expenses.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1998.
______
By Mr. DASCHLE:
S. 1756. A bill to name the education center under construction at
Fort Campbell, Kentucky, after Wendell H. Ford; to the Committee on
Armed Services.
The Wendell H. Ford Education Center Designation Act of 1998
Mr. DASCHLE. Mr. President, I would like to call to the Senate's
attention an impressive milestone that a member of this body will reach
this weekend. On Saturday the senior Senator from Kentucky, my friend
and Democratic Whip, Wendell Ford, will have served the state of
Kentucky in the Senate for the 8,478th day. He will become the longest-
serving Senator in Kentucky history.
While I suspect that Senator Ford might be more concerned this
weekend about how his beloved Kentucky Wildcats will fare in the NCAA
basketball tournament than about achieving any personal record, I hope
he will allow me a few minutes to recognize this tremendous
achievement.
It gives me great personal satisfaction to see Senator Ford cap his
distinguished Senate career by reaching this milestone. It is also
appropriate that Senator Ford does so by surpassing the length of
service of another great Senator from Kentucky, the former Democratic
Leader and then Vice President of the United States, Alben Barkley.
Wendell Ford began his Senate service back in December 1974. In 23-
plus years, he has made his mark in the Senate in an extraordinary
number of ways: as a tenacious fighter for the people of Kentucky, as a
skilled parliamentarian and orator, as a leader and faithful soldier of
his party, and as a genuinely warm, funny, and down-to-earth human
being.
Perhaps the Almanac of American Politics best described his political
tenacity when it said that Senator Ford's ``fierce determination to
champion Kentuckians' interests seems rooted in a sense that they are
little guys who are victims or targets of big selfish guys elsewhere--
that they are as humble as Ford's own economic background.'' Indeed,
anyone who has engaged Senator Ford in the legislative arena knows that
he is deeply rooted in the Kentucky soil from which he sprang.
He has been a thoroughly tireless defender of Kentucky's working
families, from 60,000 tobacco growers on small farms across the state
to the coal miners in Appalachia's hills and hollows. Wendell Ford
surely deserves one of the highest compliments one can give a Senator:
that he has never forgotten where he came from.
[[Page S1950]]
Though I can think of no one more tenacious in defense of his
constituents, I can also think of no Senator more loyal to his party, 2
traits that are sometimes difficult to reconcile.
Wendell Ford has served his party in a variety of ways: as chairman
of the Democratic Senatorial Campaign Committee; as chairman and
ranking member of the Senate Rules Committee; as chairman and ranking
member of the Commerce Subcommittee on Aviation; and, since 1991,
assistant Senate Democratic Leader and Whip.
His friendship and counsel to me during my tenure as Senate
Democratic leader have been invaluable. I could not imagine learning
the many facets of this job without Senator Ford at my side. Wendell
Ford represents the best of the Senate's old school. He is someone who
reveres the traditions and rules that are the foundation of the Senate.
He is also someone who values the courtesy, humor, and personal bonds
that give the Senate its life and its sense of common purpose.
Mr. President, the state of Kentucky has sent a number of talented
men to this chamber. Men like Albert ``Happy'' Chandler, Earle C.
Clements, John Sherman Cooper, and certainly the legendary Henry Clay
come to mind. It is a high honor that Wendell Ford stands next to these
great Kentuckians in service to their state. But it is perhaps most
appropriate that Senator Ford surpassed the tenure of former Senator
Alben Barkley. Like Senator Ford, Alben Barkley had roots in the soil,
born on a small tobacco farm in Kentucky.
Like Senator Ford, Alben Barkley served his state and country in a
range of positions, from county judge, to Congressman, Senator, then
Vice President of the United States. And like Senator Ford, he was in
the Senate leadership in both the Majority and Minority, serving as
Leader in both capacities.
Tested by the loss of the Senate majority in the mid-l940s, Senator
Barkley turned adversity to his advantage. In 1948, a poll of
journalists in Colliers magazine recognized Minority Leader Barkley as
the most effective member of the Senate. This was remarkable, since 10
years earlier, a similar poll had left him completely off the list of
the 10 most effective members even though he was Majority Leader.
In recognition of his effectiveness, one journalist commented that
``under conditions that would have caused a less determined man to walk
out and rest, he continued to work for his country through his party.''
Another said that ``by his wisdom, humor, and moderation, plus his
devotion to the system, he has strengthened the concept of party
responsibility.'' More appropriate words could not be spoken about
Senator Ford, either.
We can only hope that Senator Ford may also look to one other example
set by Alben Barkley. Senator Barkley became Vice President Barkley in
1948. He served in that capacity for 1 term. Not content to accept a
permanent retirement after leaving the Vice Presidency, however,
Barkley ran again for the Senate in 1954 and won, returning to his
beloved Senate. Maybe Senator Ford will keep that in the back of his
mind.
But taking Senator Ford at his word--that he will be leaving the
Senate for good at the end of this year--his staff and I have tried to
settle on a fitting tribute to the longest-serving Senator in Kentucky
history. A tribute that will symbolize for every Kentuckian the
enduring commitment to their well being that Wendell Ford has shown.
Today I am introducing a bill to name the school under construction
in Fort Campbell, Kentucky, the ``Wendell H. Ford Education Center.''
The Wendell H. Ford Education Center will assume its name the day
Senator Ford leaves the Senate. I hope the students who enter its halls
will fully appreciate the contributions of Wendell H. Ford and the
remarkable way in which he has led his colleagues, his State, and his
country in the difficult challenges we have faced in the past 25 years.
Like many in Kentucky, many in this chamber are familiar with one of
Senator Ford's trademark greetings, ``How are all you lucky people
doing?'' This is sometimes abbreviated to simply, ``Hey, Lucky!''
Truly, all of us who have served with Senator Ford have been extremely
lucky. He will be missed by a lot of people around here when he retires
at the end of this Congress.
But today, we all should all take a moment to congratulate and thank
Senator Wendell Ford on his record-breaking service to the people of
Kentucky, the United States Senate, and the country.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1756
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. NAMING OF EDUCATION CENTER AT FORT CAMPBELL,
KENTUCKY.
(a) Name.--The education center under construction at Fort
Campbell, Kentucky, shall be known and designated as the
``Wendell H. Ford Education Center''. Any reference to such
center in any law, regulation, map, document, record, or
other paper of the United States shall be considered to be a
reference to the Wendell H. Ford Education Center.
(b) Effective Date.--Subsection (a) shall take effect on
January 3, 1999, or the first day on which Wendell H. Ford
ceases to be a Senator.
Mr. REID. Mr. President, Wendell H. Ford tomorrow will surpass the
tenure for all Senators from the State of Kentucky as having served the
longest period of time. Wendell Ford is Kentucky through and through--
born in Daviess County, KY, went to the University of Kentucky, served
in the U.S. Army during the Second World War. Wendell Ford is someone
who has contributed to this body second to none. I rise today to join
with others in recognizing the contributions of one of the Senate's
finest Members and someone I consider a friend.
As I have said, Mr. President, on March 14 Senator Wendell Ford will
become Kentucky's longest-serving Senator, surpassing the tenure of the
legendary Alben Barkley. Senator Ford will have served 8,478 days in
the Senate from the State of Kentucky.
In preparing these remarks, we were looking through the Courier-
Journal, an editorial which said:
Senator Wendell Ford likes to refer to himself as a dumb
country boy with dirt between his toes.
Don't believe that for a second.
The newspaper goes on to say that it was a long road from our
colleague's hometown of Yellow Creek, KY, to Capitol Hill and an even
longer one from the job of Senator to the Senate's assistant leader to
the Senate's whip.
It goes on:
Only a smart, disciplined person could negotiate such
passages without losing touch with who he really is.
The newspaper concludes by saying:
Senator Ford has done that.
That is, he has negotiated these difficult passages and he has not
lost touch with the people of the State of Kentucky.
Those of us who know Wendell Ford can attest to his honor and to his
sincerity. His rise from the Kentucky State Senate to Lieutenant
Governor to the 49th Governor of the Commonwealth of Kentucky to now a
U.S. Senator and the assistant leader of the Senate has never
distracted the person Wendell Ford from the man he is--his own man,
someone who has never forgotten his roots.
In our Senate Democratic leadership meetings, Senator Ford is one who
can always bring the discussion back to where we should be. His
commonsense approach to legislation and politics is refreshing to me
and should be reassuring not only to the people of Kentucky but to this
country.
Wendell Ford can be compassionate because, Mr. President, he is a
compassionate man. He can be very tough because, Mr. President, he is a
tough man. He can be very sincere because he is, Mr. President, a
sincere man. Wendell Ford has in his quiver many arrows. Yes,
compassion, toughness, and sincerity, but I think the arrow that he
carries around that we all rely on is the wisdom that has developed in
the person of Wendell Ford.
Wendell Ford is truly one of the Senate's great talents, but one of
his great talents is in the finest traditions of the Senate Chamber:
his mastery of the negotiation of compromise. He is able to do this
because he is respected, he is trusted, and, as I already indicated, he
is honorable.
[[Page S1951]]
This Senate will be lesser when Wendell Ford returns to his native
Kentucky, but his quarter century of service to his State and to the
Nation will stand as a legacy to be remembered and honored.
Mr. President, I am grateful to have served with Wendell Ford. My
wife Landra and I appreciate Jean, his lovely wife, and their--
Wendell's and Jean's--love of their family and their love of the Senate
family. I personally honor his wisdom, his humor, and his compassion.
In an age of cynicism, I really appreciate Wendell Ford's down-home
sincerity. It has inspired me. And it should inspire us all.
Mr. COVERDELL addressed the Chair.
The PRESIDING OFFICER. The Senator from Georgia.
Mr. COVERDELL. Mr. President, I have enjoyed the remarks by those on
the other side of the aisle on behalf of Senator Ford of Kentucky. And
indeed, he has been a very large figure here in the U.S. Senate for
many, many years. It is very appropriate that he has been honored by
his side of the aisle.
Mr. KENNEDY. Mr. President, it is a privilege to pay tribute today to
our outstanding colleague from Kentucky, Wendell Ford, as he reaches an
historic milestone and becomes the longest serving Senator in the
history of the Commonwealth of Kentucky.
Our colleague's service to Kentucky, to the Senate, and to the nation
has been outstanding through all these years, and it continues to be
outstanding today. As our Whip since 1990, he is an essential part of
the Senate's leadership team and deserves a great deal of the credit
for the legislative achievements of our Party and of the Senate as a
whole.
As a legislator, our colleague has consistently earned high marks for
his brilliant service to Kentucky and the country. He has earned the
respect of all of us on both sides of the aisle for his skill and warm
sense of humor in debate, and for his leadership on a wide range of
issues, especially in areas such as aviation, education,
telecommunications, the environment, election reform, and the many
issues of vital importance to Kentucky and to all of rural America.
I recall that a Ford Fellow Scholarship Fund was established last
year in Kentucky in his honor, and I am sure that in the years ahead,
the Ford Fellows will carry on the high standards that our colleague
has so consistently set for excellence in education.
All of us regret that our highly regarded colleague has chosen not to
seek re-election to the Senate this fall. It is no accident that he is
the longest-serving Senator in the history of his state. The
stratospheric victory margins he has compiled in his many election
successes during his brilliant career show that his seat in the Senate
is secure against any challenge, and are the highest possible tribute
to the respect and affection in which he is held in his state.
That long-standing success is no easy achievement. I'm reminded of
the famous lines by Kentucky's Irish poet, James Mulligan:
The moonlight falls the softest in Kentucky;
The bluegrass waves the bluest;
The songbirds are the sweetest;
The thoroughbreds are the finest;
The landscape is the grandest--
And politics the damnedest in Kentucky.
I know that the people of Kentucky will miss Senator Ford in the
Senate, and so will all of us in this body. We're proud of his
leadership and honored by his statesmanship, but most of all, we're
grateful for his friendship.
______
By Ms. SNOWE (for herself and Mr. D'Amato):
S. 1757. A bill to amend the Public Health Service Act to extend the
program of research on breast cancer; to the Committee on Labor and
Human Resources.
the breast cancer research extension act of 1998
Ms. SNOWE. Mr. President, I rise today to introduce legislation which
will authorize breast cancer research funding at a record level.
Over the past seven years, Congress has demonstrated an increased
commitment to the fight against breast cancer. Back in 1991, less than
$100 million dollars was spent on breast cancer research. Since then,
Congress has steadily increased this allocation. These increases have
stimulated new and exciting research that has begun to unravel the
mysteries of this devastating disease and is moving us closer to a
cure. Today, we must send a message through our authorization level to
scientists and research policy makers that we are committed to
continued funding for this important research.
This increase in funding is necessary because breast cancer has
reached crisis levels in America. In 1998, it is estimated that 178,700
new cases of breast cancer will be diagnosed in this country, and
43,500 women will die from this disease. Breast cancer is the most
common form of cancer and the second leading cause of cancer deaths
among American women. Today, over 2.6 million American women are living
with this disease. In my home state of Maine, it is the most commonly-
diagnosed cancer among women, representing more than 30 percent of all
new cancers in Maine women.
In addition to these enormous human costs, breast cancer also exacts
a heavy financial toll--over $6 billion of our health care dollars are
spent on breast cancer annually.
Today, however, there is cause for hope. Recent scientific progress
made in the fight to conquer breast cancer is encouraging. Researchers
have isolated the genes responsible for inherited breast cancer, and
are beginning to understand the mechanism of the cancer cell itself. It
is imperative that we capitalize upon these advances by continuing to
support the scientists investigating this disease and their innovative
research.
For this reason, my bill increases the FY99 funding authorization
level for breast cancer research to $650 million. This level represents
the funding level scientists believe is necessary to make progress
against this disease. It also reflects the 11 percent increase that the
Administration requested for NIH funding. This increased funding will
contribute substantially toward solving the mysteries surrounding
breast cancer. Our continued investment will save countless lives and
health care dollars, and prevent undue suffering in millions of
American women and families.
On behalf of the 2.6 million women living with breast cancer, I urge
my colleagues to support this important bill.
______
By Mr. LUGAR (for himself, Mr. Biden, Mr. Chafee, Mr. Leahy, Mr.
Abraham, Mr. Akaka, Mr. Allard, Mr. Craig, Mr. Cochran, Mr.
DeWine, Mr. Glenn, Mr. Harkin, Mr. Inhofe, Mr. Jeffords, Mr.
Johnson, Mr. Kerrey, Mr. Kerry, Mr. Kempthorne, Mr. Levin, Mr.
Moynihan, and Mr. Murkowski):
S. 1758. A bill to amend the Foreign Assistance Act of 1961 to
facilitate protection of tropical forests through debt reduction with
developing countries with tropical forests; to the Committee on Foreign
Relations.
the tropical forest conservation act of 1998
Mr. LUGAR. Mr. President, along with Senators Biden, Chafee and
Leahy, I am today introducing the Tropical Forest Conservation Act of
1998, a bill to protect outstanding tropical forests in developing
countries through Debt for Nature Swaps. We are joined in this effort
by Senators Abraham, Akaka, Allard, Cochran, Craig, DeWine, Glenn,
Harkin, Inhofe, Jeffords, Johnson, Kempthorne, Kerrey, Kerry, Levin,
Moynihan, and Murkowski.
The Tropical Forest Conservation Act builds upon the success of
President Bush's Enterprise for the Americas Initiative (EAI) and
extends the debt reduction portion of that initiative to the protection
of tropical forests in lower and middle income developing countries
outside of Latin America and the Caribbean.
Under the EAI, $154 million has been devoted to environmental
protection and child survival in Argentina, Bolivia, Chile, Colombia,
El Salvador, Jamaica and Uruguay. One of the novel features of the EAI
has been the linkage between debt reduction and the generation of local
funds for the environmental protection and child survival. Whereas the
U.S. receives dollar payments for the remaining principal payments
after debt reduction, interest streams on the remaining debt are
channeled into these local funds.
[[Page S1952]]
The first Debt for Nature bill enacted into law was the ``Debt for
Nature Exchange'' provision of the International Finance and
Development Act of 1989. Under the authority of the Biden Lugar bill,
the U.S. Agency for International Development has established
environmental endowment funds in Costa Rica, Honduras, Indonesia,
Jamaica, Madagascar, Mexico, Panama, and the Philippines. By committing
$ 95 million of its own funds, US AID has leveraged an additional $51
million. This is an effective use of scarce federal conservation
dollars.
The Tropical Forest Conservation Act of 1998 is a companion bill to
H.R. 2870, coauthored by Representatives Rob Portman (R.-Ohio), John
Kasich (R- Ohio) and Lee Hamilton (R.-Indiana), which was recently
ordered to be reported by the House International Relations Committee.
The Tropical Forest Conservation Act of 1998 would authorize the use
of three ``debt for nature'' mechanisms to protect outstanding tropical
forests in lower and middle income developing countries.
Under the Buy Back option, an eligible country would be able to buy
back its debt at its asset value in exchange for its willingness to
place an additional forty percent of this value in local currency in a
tropical forest fund. Suppose, for example, that the asset value of the
country's debt was fifty cents on the dollar. In return for being
allowed to buy back its debt at its asset value, the developing country
would have to agree to place forty percent of that value, or twenty
cents, into a fund to protect its tropical forests.
Under this option, there would be no cost to the United States
Government since the debt is being bought back at its value as
determined under the Federal Credit Reform Act of 1990.
Second, the bill authorizes a Debt Swap option under which a
nonfederal individual or organization would be able to engage in Debt
for Nature Swaps with lower income developing nations. These purchasers
would work with the United States government, but would use their own
funds to assist these developing countries to reduce or buy back their
bilateral debt owed to the United States Government in return for their
placing local currencies in a tropical forest fund.
Under this second option, there would also be no cost to the United
States Government because the financial assistance involved would come
from nongovernmental or private entities.
Third, the bill authorizes a debt reduction mechanism based upon the
Enterprise for the Americas Initiative. Under the EAI Model, the
developing country is allowed to place the interest on the reduced debt
instrument in a tropical forest fund to be administered by a tropical
forest board within that country.
When the third option is exercised, the bill authorizes
appropriations to compensate the United States Treasury for the
reduction in the revenue stream which occurs. However, as in the case
of the EAI, these funds would be effectively leveraged because the
amounts placed by a eligible country in its tropical forest fund would
exceed the amount of revenues foregone by the United States Treasury.
For example, in the case of the EAI, $90 million in U.S. funds resulted
in $154 million being placed by the Latin American and Caribbean
countries in these local funds.
The Tropical Forest Conservation Act applies to concessional loans
made under the Foreign Assistance Act of 1961 and credits granted under
the Agricultural Trade and Assistance Act of 1954. It is consistent
with established Treasury Department debt reduction practices as well
as with the Federal Credit Reform Act of 1990.
The bill authorizes $50 million in FY 99, $125 million in FY 2000 and
$225 million in FY 2001, subject to appropriations.
Within each developing country, the tropical forest fund would be
administered by a commission representing a majority of local
nongovernmental, community development and scientific and academic
organizations, representatives of the host government and a
representative of the United States Government.
The tropical forest fund could be used to provide grants for the
following purposes:
(1) to preserve, maintain or restore the tropical forest of the
beneficiary country through establishing parks and reserves;
(2) to develop and implement scientifically sound systems of natural
resource management;
(3) to provide training programs to strengthen conservation
institutions and the scientific, technical and managerial capacities of
individuals and organizations involved in conservation;
(4) to provide for restoration, protection and sustainable use of
diverse animal and plant species;
(5) to mitigate greenhouse gases in the atmosphere;
(6) to develop and support individuals living in or near a tropical
forest, including the cultures of such individuals.
Oversight of this program would be accomplished through expanding the
existing Enterprise for the Americas Board by two federal and two
nongovernmental representatives so that the Board would be composed of
fifteen members, eight of whom would represent federal agencies
involved in the protection, restoration and sustainable use of tropical
forests and seven of whom would represent nongovernmental organizations
and experts engaged in these activities.
This legislation provides an incentive for the lower income
developing nations to repay their debt owed to the United States.
Government. It protects outstanding tropical forests throughout the
world. And it stretches the limited federal dollars which are available
to assist in this effort, therefor making an effective use of
international environmental assistance.
I ask unanimous consent that a copy of the bill be printed in the
Record. I urge my colleagues to join in this effort.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1758
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH
TROPICAL FORESTS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)
is amended by adding at the end the following:
``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS
``SEC. 801. SHORT TITLE.
``This part may be cited as the `Tropical Forest
Conservation Act of 1998'.
``SEC. 802. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds the following:
``(1) It is the established policy of the United States to
support and seek protection of tropical forests around the
world.
``(2) Tropical forests provide a wide range of benefits to
humankind by--
``(A) harboring a major share of the Earth's biological and
terrestrial resources, which are the basis for developing
pharmaceutical products and revitalizing agricultural crops;
``(B) playing a critical role as carbon sinks in reducing
greenhouse gases in the atmosphere, thus moderating potential
global climate change; and
``(C) regulating hydrological cycles on which far-flung
agricultural and coastal resources depend.
``(3) International negotiations and assistance programs to
conserve forest resources have proliferated over the past
decade, but the rapid rate of tropical deforestation
continues unabated.
``(4) Developing countries with urgent needs for investment
and capital for development have allocated a significant
amount of their forests to logging concessions.
``(5) Poverty and economic pressures on the populations of
developing countries have, over time, resulted in clearing of
vast areas of forest for conversion to agriculture, which is
often unsustainable in the poor soils underlying tropical
forests.
``(6) Debt reduction can reduce economic pressures on
developing countries and result in increased protection for
tropical forests.
``(b) Purposes.--The purposes of this part are--
``(1) to recognize the values received by United States
citizens from protection of tropical forests;
``(2) to facilitate greater protection of tropical forests
(and to give priority to protecting tropical forests with the
highest levels of biodiversity and under the most severe
threat) by providing for the alleviation of debt in countries
where tropical forests are located, thus allowing the use of
additional resources to protect these critical resources and
reduce economic pressures that have led to deforestation;
``(3) to ensure that resources freed from debt in such
countries are targeted to protection of tropical forests and
their associated values; and
``(4) to rechannel existing resources to facilitate the
protection of tropical forests.
[[Page S1953]]
``SEC. 803. DEFINITIONS.
``As used in this part:
``(1) Administering body.--The term `administering body'
means the entity provided for in section 809(c).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on International Relations and the
Committee on Appropriations of the House of Representatives;
and
``(B) the Committee on Foreign Relations and the Committee
on Appropriations of the Senate.
``(3) Beneficiary country.--The term `beneficiary country'
means an eligible country with respect to which the authority
of section 806(a)(1), section 807(a)(1), or paragraph (1) or
(2) of section 808(a) is exercised.
``(4) Board.--The term `Board' means the board referred to
in section 811.
``(5) Developing country with a tropical forest.--The term
`developing country with a tropical forest' means--
``(A)(i) a country that has a per capita income of $725 or
less in 1994 United States dollars (commonly referred to as
`low-income country'), as determined and adjusted on an
annual basis by the International Bank for Reconstruction and
Development in its World Development Report; or
``(ii) a country that has a per capita income of more than
$725 but less than $8,956 in 1994 United States dollars
(commonly referred to as `middle-income country'), as
determined and adjusted on an annual basis by the
International Bank for Reconstruction and Development in its
World Development Report; and
``(B) a country that contains at least one tropical forest
that is globally outstanding in terms of its biological
diversity or represents one of the larger intact blocks of
tropical forests left, on a continental or global scale.
``(6) Eligible country.--The term `eligible country' means
a country designated by the President in accordance with
section 805.
``(7) Tropical forest agreement.--The term `Tropical Forest
Agreement' or `Agreement' means a Tropical Forest Agreement
provided for in section 809.
``(8) Tropical forest facility.--The term `Tropical Forest
Facility' or `Facility' means the Tropical Forest Facility
established in the Department of the Treasury by section 804.
``(9) Tropical forest fund.--The term `Tropical Forest
Fund' or `Fund' means a Tropical Forest Fund provided for in
section 810.
``SEC. 804. ESTABLISHMENT OF THE FACILITY.
``There is established in the Department of the Treasury an
entity to be known as the `Tropical Forest Facility' for the
purpose of providing for the administration of debt reduction
in accordance with this part.
``SEC. 805. ELIGIBILITY FOR BENEFITS.
``(a) In General.--To be eligible for benefits from the
Facility under this part, a country shall be a developing
country with a tropical forest--
``(1) whose government meets the requirements applicable to
Latin American or Caribbean countries under paragraphs (1)
through (5) and (7) of section 703(a) of this Act; and
``(2) that has put in place major investment reforms, as
evidenced by the conclusion of a bilateral investment treaty
with the United States, implementation of an investment
sector loan with the Inter-American Development Bank, World
Bank-supported investment reforms, or other measures, as
appropriate.
``(b) Eligibility Determinations.--
``(1) In general.--Consistent with subsection (a), the
President shall determine whether a country is eligible to
receive benefits under this part.
``(2) Congressional notification.--The President shall
notify the appropriate congressional committees of his
intention to designate a country as an eligible country at
least 15 days in advance of any formal determination.
``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN
ASSISTANCE ACT OF 1961.
``(a) Authority To Reduce Debt.--
``(1) Authority.--The President may reduce the amount owed
to the United States (or any agency of the United States)
that is outstanding as of January 1, 1998, as a result of
concessional loans made to an eligible country by the United
States under part I of this Act, chapter 4 of part II of this
Act, or predecessor foreign economic assistance legislation.
``(2) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President--
``(A) $25,000,000 for fiscal year 1999;
``(B) $75,000,000 for fiscal year 2000; and
``(C) $100,000,000 for fiscal year 2001.
``(3) Certain prohibitions inapplicable.--
``(A) In general.--A reduction of debt pursuant to this
section shall not be considered assistance for purposes of
any provision of law limiting assistance to a country.
``(B) Additional requirement.--The authority of this
section may be exercised notwithstanding section 620(r) of
this Act or section 321 of the International Development and
Food Assistance Act of 1975.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the agency
primarily responsible for administering part I of this Act of
an agreement entered into under paragraph (1) with an
eligible country to exchange a new obligation for outstanding
obligations.
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation for the
country shall be established relating to the agreement, and
the agency primarily responsible for administering part I of
this Act shall make an adjustment in its accounts to reflect
the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 704(a)(1) of this Act:
``(1) The provisions relating to repayment of principal
under section 705 of this Act.
``(2) The provisions relating to interest on new
obligations under section 706 of this Act.
``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A
RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
ACT OF 1954.
``(a) Authority To Reduce Debt.--
``(1) Authority.--Notwithstanding any other provision of
law, the President may reduce the amount owed to the United
States (or any agency of the United States) that is
outstanding as of January 1, 1998, as a result of any credits
extended under title I of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a
country eligible for benefits from the Facility.
``(2) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President--
``(A) $25,000,000 for fiscal year 1999;
``(B) $50,000,000 for fiscal year 2000; and
``(C) $50,000,000 for fiscal year 2001.
``(b) Implementation of Debt Reduction.--
``(1) In general.--Any debt reduction pursuant to
subsection (a) shall be accomplished at the direction of the
Facility by the exchange of a new obligation for obligations
of the type referred to in subsection (a) outstanding as of
the date specified in subsection (a)(1).
``(2) Exchange of obligations.--
``(A) In general.--The Facility shall notify the Commodity
Credit Corporation of an agreement entered into under
paragraph (1) with an eligible country to exchange a new
obligation for outstanding obligations.
``(B) Additional requirement.--At the direction of the
Facility, the old obligations that are the subject of the
agreement shall be canceled and a new debt obligation shall
be established for the country relating to the agreement, and
the Commodity Credit Corporation shall make an adjustment in
its accounts to reflect the debt reduction.
``(c) Additional Terms and Conditions.--The following
additional terms and conditions shall apply to the reduction
of debt under subsection (a)(1) in the same manner as such
terms and conditions apply to the reduction of debt under
section 604(a)(1) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1738c):
``(1) The provisions relating to repayment of principal
under section 605 of such Act.
``(2) The provisions relating to interest on new
obligations under section 606 of such Act.
``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND
DEBT BUYBACKS.
``(a) Loans and Credits Eligible for Sale, Reduction, or
Cancellation.--
``(1) Debt-for-nature swaps.--
``(A) In general.--Notwithstanding any other provision of
law, the President may, in accordance with this section, sell
to any eligible purchaser described in subparagraph (B) any
concessional loans described in section 806(a)(1) or any
credits described in section 807(a)(1), or on receipt of
payment from an eligible purchaser described in subparagraph
(B), reduce or cancel such loans (or credits) or portion
thereof, only for the purpose of facilitating a debt-for-
nature swap to support eligible activities described in
section 809(d).
``(B) Eligible purchaser described.--A loan or credit may
be sold, reduced, or canceled under subparagraph (A) only to
a purchaser who presents plans satisfactory to the President
for using the loan or credit for the purpose of engaging in
debt-for-nature swaps to support eligible activities
described in section 809(d).
``(C) Consultation requirement.--Before the sale under
subparagraph (A) to any eligible purchaser described in
subparagraph (B), or any reduction or cancellation under such
subparagraph (A), of any loan or credit made to an eligible
country, the President shall consult with the country
concerning the amount of loans or credits to be sold,
reduced, or canceled and their uses for debt-
[[Page S1954]]
for-nature swaps to support eligible activities described in
section 809(d).
``(D) Authorization of appropriations.--For the cost (as
defined in section 502(5) of the Federal Credit Reform Act of
1990) for the reduction of any debt pursuant to subparagraph
(A), amounts authorized to appropriated under sections
806(a)(2) and 807(a)(2) shall be made available for such
reduction of debt pursuant to subparagraph (A).
``(2) Debt buybacks.--Notwithstanding any other provision
of law, the President may, in accordance with this section,
sell to any eligible country any concessional loans described
in section 806(a)(1) or any credits described in section
807(a)(1), or on receipt of payment from an eligible country,
reduce or cancel such loans (or credits) or portion thereof,
only for the purpose of facilitating a debt buyback by an
eligible country of its own qualified debt, only if the
eligible country uses an additional amount of the local
currency of the eligible country, equal to not less than 40
percent of the price paid for such debt by such eligible
country, or the difference between the price paid for such
debt and the face value of such debt, to support eligible
activities described in section 809(d).
``(3) Terms and conditions.--Notwithstanding any other
provision of law, the President shall, in accordance with
this section, establish the terms and conditions under which
loans and credits may be sold, reduced, or canceled pursuant
to this section.
``(4) Administration.--
``(A) In general.--The Facility shall notify the
administrator of the agency primarily responsible for
administering part I of this Act or the Commodity Credit
Corporation, as the case may be, of eligible purchasers
described in paragraph (1)(B) that the President has
determined to be eligible under paragraph (1), and shall
direct such agency or Corporation, as the case may be, to
carry out the sale, reduction, or cancellation of a loan
pursuant to such paragraph.
``(B) Additional requirement.--Such agency or Corporation,
as the case may be, shall make an adjustment in its accounts
to reflect the sale, reduction, or cancellation.
``(b) Deposit of Proceeds.--The proceeds from the sale,
reduction, or cancellation of any loan sold, reduced, or
canceled pursuant to this section shall be deposited in the
United States Government account or accounts established for
the repayment of such loan.
``SEC. 809. TROPICAL FOREST AGREEMENT.
``(a) Authority.--
``(1) In general.--The Secretary of State is authorized, in
consultation with other appropriate officials of the Federal
Government, to enter into a Tropical Forest Agreement with
any eligible country concerning the operation and use of the
Fund for that country.
``(2) Consultation.--In the negotiation of such an
Agreement, the Secretary shall consult with the Board in
accordance with section 811.
``(b) Contents of Agreement.--The requirements contained in
section 708(b) of this Act (relating to contents of an
agreement) shall apply to a Agreement in the same manner as
such requirements apply to an Americas Framework Agreement.
``(c) Administering Body.--
``(1) In general.--Amounts disbursed from the Fund in each
beneficiary country shall be administered by a body
constituted under the laws of that country.
``(2) Composition.--
``(A) In general.--The administering body shall consist
of--
``(i) one or more individuals appointed by the United
States Government;
``(ii) one or more individuals appointed by the government
of the beneficiary country; and
``(iii) individuals who represent a broad range of--
``(I) environmental nongovernmental organizations of, or
active in, the beneficiary country;
``(II) local community development nongovernmental
organizations of the beneficiary country; and
``(III) scientific or academic organizations or
institutions of the beneficiary country.
``(B) Additional requirement.--A majority of the members of
the administering body shall be individuals described in
subparagraph (A)(iii).
``(3) Responsibilities.--The requirements contained in
section 708(c)(3) of this Act (relating to responsibilities
of the administering body) shall apply to an administering
body described in paragraph (1) in the same manner as such
requirements apply to an administering body described in
section 708(c)(1) of this Act.
``(d) Eligible Activities.--Amounts deposited in a Fund
shall be used to provide grants to preserve, maintain, and
restore the tropical forests in the beneficiary country,
including one or more of the following activities:
``(1) Establishment, restoration, protection, and
maintenance of parks, protected areas, and reserves.
``(2) Development and implementation of scientifically
sound systems of natural resource management, including land
and ecosystem management practices.
``(3) Training programs to strengthen conservation
institutions and increase scientific, technical, and
managerial capacities of individuals and organizations
involved in conservation efforts.
``(4) Restoration, protection, or sustainable use of
diverse animal and plant species.
``(5) Mitigation of greenhouse gases in the atmosphere.
``(6) Development and support of the livelihoods of
individuals living in or near a tropical forest, including
the cultures of such individuals, in a manner consistent with
protecting such tropical forest.
``(e) Grant Recipients.--
``(1) In general.--Grants made from a Fund shall be made
to--
``(A) nongovernmental environmental, conservation, and
indigenous peoples organizations of, or active in, the
beneficiary country;
``(B) other appropriate local or regional entities of, or
active in, the beneficiary country; and
``(C) in exceptional circumstances, the government of the
beneficiary country.
``(2) Priority.--In providing grants under paragraph (1),
priority shall be given to projects that are run by
nongovernmental organizations and other private entities and
that involve local communities in their planning and
execution.
``(f) Review of Larger Grants.--Any grant of more than
$100,000 from a Fund shall be subject to veto by the
Government of the United States or the government of the
beneficiary country.
``(g) Eligibility Criteria.--In the event that a country
ceases to meet the eligibility requirements set forth in
section 805(a), as determined by the President pursuant to
section 805(b), then grants from the Fund for that country
may only be made to nongovernmental organizations until such
time as the President determines that such country meets the
eligibility requirements set forth in section 805(a).
``SEC. 810. TROPICAL FOREST FUND.
``(a) Establishment.--Each beneficiary country that enters
into a Tropical Forest Agreement under section 809 shall be
required to establish a Tropical Forest Fund to receive
payments of interest on new obligations undertaken by the
beneficiary country under this part.
``(b) Requirements Relating to Operation of Fund.--The
following terms and conditions shall apply to the Fund in the
same manner as such terms as conditions apply to an
Enterprise for the Americas Fund under section 707 of this
Act:
``(1) The provision relating to deposits under subsection
(b) of such section.
``(2) The provision relating to investments under
subsection (c) of such section.
``(3) The provision relating to disbursements under
subsection (d) of such section.
``SEC. 811. BOARD.
``(a) Enterprise for the Americas Board.--The Enterprise
for the Americas Board established under section 610(a) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(a)) shall, in addition to carrying out the
responsibilities of the Board under section 610(c) of such
Act, carry out the duties described in subsection (c) of this
section for the purposes of this part.
``(b) Additional Membership.--
``(1) In general.--The Enterprise for the Americas Board
shall be composed of an additional four members appointed by
the President as follows:
``(A) Two representatives from the United States
Government, including a representative of the International
Forestry Division of the United States Forest Service.
``(B) Two representatives from private nongovernmental
environmental, scientific, and academic organizations with
experience and expertise in preservation, maintenance, and
restoration of tropical forests.
``(2) Chairperson.--Notwithstanding section 610(b)(2) of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board
shall be headed by a chairperson who shall be appointed by
the President from among the representatives appointed under
section 610(b)(1)(A) of such Act or paragraph (1)(A) of this
subsection.
``(c) Duties.--The duties described in this subsection are
as follows:
``(1) Advise the Secretary of State on the negotiations of
Tropical Forest Agreements.
``(2) Ensure, in consultation with--
``(A) the government of the beneficiary country,
``(B) nongovernmental organizations of the beneficiary
country,
``(C) nongovernmental organizations of the region (if
appropriate),
``(D) environmental, scientific, and academic leaders of
the beneficiary country, and
``(E) environmental, scientific, and academic leaders of
the region (as appropriate),
that a suitable administering body is identified for each
Fund.
``(3) Review the programs, operations, and fiscal audits of
each administering body.
``SEC. 812. CONSULTATIONS WITH THE CONGRESS.
``The President shall consult with the appropriate
congressional committees on a periodic basis to review the
operation of the Facility under this part and the eligibility
of countries for benefits from the Facility under this part.
``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.
``(a) In General.--Not later than December 31 of each
fiscal year, the President shall prepare and transmit to the
Congress an annual report concerning the operation of the
Facility for the prior fiscal year. Such report shall
include--
``(1) a description of the activities undertaken by the
Facility during the previous fiscal year;
[[Page S1955]]
``(2) a description of any Agreement entered into under
this part;
``(3) a report on any Funds that have been established
under this part and on the operations of such Funds; and
``(4) a description of any grants that have been provided
by administering bodies pursuant to Agreements under this
part.
``(b) Supplemental Views in Annual Report.--Not later than
December 15 of each fiscal year, each member of the Board
shall be entitled to receive a copy of the report required
under subsection (a). Each member of the Board may prepare
and submit supplemental views to the President on the
implementation of this part by December 31 for inclusion in
the annual report when it is transmitted to Congress pursuant
to this section.''.
Mr. BIDEN. Mr. President, I am pleased to join today with my good
friend, the distinguished senior Senator from Indiana, to introduce
important legislation that will benefit all Americans by helping-- in
important ways--both our global environment and our global economy.
I first became interested in this issue almost ten years ago, when
the world's attention was focused on an international debt crisis, much
of it centered in Latin American countries. At that same time, we were
beginning to understand the crucial role that tropical rainforests--all
over the world--play in our own lives here in the United States.
Tropical rainforests are among the most complex and fundamental
components of our planet's ecology. These natural wonders affect the
global climate through their influence on rainfall patterns, which in
turn makes them the sources of some of the world's greatest rivers,
which in its turn affects farmlands and coastal fisheries all over the
world.
Tropical rainforests are also the richest environments for all forms
of life--they harbor the greatest biodiversity of any ecosystem. With
increasing frequency, we find there the chemicals that go into new
medicines, more robust food crops, and other direct economic
applications of the rainforests' riches.
We may picture rainforests as among the most primitive environments--
with climate and wildlife left over from the beginnings of time. But it
is only now, with the accelerating integration of the global economy
and the realization that burning fossil fuels can alter our planets
weather, that we recognize that rainforests must be preserved if we
want to protect our modern way of life.
The accumulation of over one hundred years of man-made greenhouse
gases from the industrial world is now joined by the increasing
emissions of industrializing nations, accelerating the threat of global
climate change. Rainforests absorb the carbon dioxide that can change
our climate, and that would change every assumption we have about how
what our future will be.
But these crucially important rainforests are under increasing threat
from fundamental trends in our international economy. As the nations
whose borders contain important rainforests take their place in the
world market, they face increasing incentives to turn their rainforests
into cash crops--cutting them for lumber, clearing them for croplands--
trading the long-term global benefits of rainforests for short-term
needs.
Not just the lumber and agricultural markets offer short-term local
gains in exchange for long-term global costs. The explosion of
international capital flows has brought the benefits and dangers of
debt to many nations with rainforests. To manage debt owed to nations
such as the United States, these nations turn to their rainforests for
quick cash. However appropriate their borrowing may be--who among us
here does not use debt to finance a house, a car, an education?--that
choice has consequences for the whole planet.
So we have the convergence of two important global trends--the
cutting of rainforests, and the spread of international debt.
Ten years ago, when these trends were at a much earlier stage, I
brought the idea of debt-for-nature swaps to Senator Lugar, who agreed
that we faced a classic public policy problem: short-term, local
incentives to engage in behavior that has long-term, global costs. That
is why we introduced the first legislation that facilitated debt-for-
nature swaps. That legislation was signed into law in 1989.
The following year, we made debt-for-nature swaps part of President
Bush's Enterprise for the Americas Act. Since then, $154 million in
developing country debt has been restructured into environmental
protection programs in Latin America.
The legislation I am introducing here today, with Senator Lugar,
Senator Chafee, Senator Leahy, and my other distinguished colleagues,
will expand the techniques of debt-for-nature exchanges to meet a wider
variety of financial situations, and will include qualified countries
in every part of the world.
In essence, we arrange for the repayment of sovereign debt owed by
qualfied countries to the United States, in exchange for their
commitment to use the savings to establish local trust funds to protect
their rainforests. We gain the environmental protection that would
otherwise not occur, they reduce their foreign exchange and debt
burdens. It's a classic win-win deal.
Two of the options allow us to transform debt owed to the United
States into funds to protect the world's rainforests at no cost to the
Treasury. The third option, for the poorest nations of the world,
provides funds to subsidize the debt exchange--and the rainforest
protection--that they could not otherwise afford.
As we watch with concern the developments in Asia, Mr. President, we
see the importance of far-sighted, creative debt management programs
for developing economies. The accumulation of unmanageable debt burdens
threatens both the stability of the international economy and the
health of our planet's ecology.
At the margin, but in important ways, the legislation we are
introducing today addresses both of those concerns, and weakens the
link between the burden of developing country debt and the wasting of
our rainforests.
I am pleased to see that the House companion to this legislation is
already moving in the International Relations Committee. I look forward
to working with Senator Lugar and all my colleagues on both sides of
the aisle here in the Senate.
Mr. CHAFEE. Mr. President, I am pleased to be here today with my
distinguished colleagues to introduce the Tropical Forest Conservation
Act of 1998. This bipartisan legislation addresses one of the most
important global environmental issues today--the protection and
preservation of tropical rain forests.
Since 1950 the world has lost as much as half of its tropical
forests, and the destruction is continuing unabated. The most
comprehensive survey of global deforestation estimated that, last year
alone, we lost more than 30 million acres of tropical rain forest--an
area the size of the State of Washington. This is a devastating loss
because of the potential biological impacts deforestation can have both
regionally and globally.
Tropical forests contain the world's richest stores of biological
diversity, and their health is essential for life on Earth. Scientists
estimate that more than 50 percent of the Earth's terrestrial
biological diversity is contained within these forests, which account
for less than 2 percent of the planet's land surface. Almost 40 percent
of all terrestrial plants and at least 25 percent of terrestrial
vertebrate species are endemic to these areas. That is, they are found
no where else on Earth. Consider that in the Tropical Andes region
alone, there are 320 species of endemic birds, 558 species of endemic
reptiles and amphibians, and 20,000 species of endemic plants.
Moreover, many of these species are found only in a small area of the
forests. And as the forests are destroyed, Mr. President, the species
are permanently lost through extinction.
Tropical forests also function as carbon ``sinks,'' storing
greenhouse gasses that could otherwise contribute to global climate
change. While there are still many scientific uncertainties related to
climate change, it is undeniable that atmospheric carbon dioxide levels
are rising rapidly. A significant number of scientists believe that
humans have already influenced our global climate. In order to lessen
the risks associated with this change, such as sea level rise, extreme
weather conditions, and higher average temperatures, it is important
that the United
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States join with other nations to take preventative action. Protecting
our tropical rain forests, and thus preserving their vital function of
reducing greenhouse gases in the atmosphere, is one such action.
These forests are important to human health in other ways. They
harbor many of the biological resources that are used in life-saving
medicines, and provide the genetic sources to revitalize agricultural
crops that supply most of the world's food. They significantly affect
rainfall, and therefore the health of crops and coastal resources
worldwide.
Many of the world's tropical forests are located in developing
countries that, since the international debt crisis of the 1970s, have
been unable to repay loans to foreign lenders. These countries are in
need of hard currency, and to come up with cash, they have resorted to
exploiting their natural resources with little regard for environmental
planning. Vast areas of tropical forests are destroyed each year for
logging, agriculture and livestock operations. This trend will continue
as debt continues to mount.
Mr. President, the Tropical Forest Conservation Act would help turn
the tide against this deforestation. This legislation builds upon
President Bush's Enterprise for the Americas Initiative, or EAI. EAI
created a system by which Latin American and Carribean governments
could restructure some of their official debt to the United States,
while channeling local currency into funds to support environmental and
child development programs.
Using so-called ``debt-for-nature swaps,'' EAI restructured bilateral
debt to provide $154 million to environmental trust funds in Latin
America. Under these swaps, a nation's debt is modified, rescheduled,
or written off, in return for the borrower nation's commitment of its
own currency towards local conservation. The legislation before us
today would utilize this same principle, but would focus exclusively on
tropical forest conservation and extend eligibility to include
countries in Africa and Asia.
The Tropical Forest Conservation Act would authorize $325 million
over three years to be used for debt-for-nature swaps with developing
countries that have forests with the greatest biodiversity and the
highest risk of threat. The bill assists countries with tropical
forests that are globally outstanding in terms of their biodiversity,
and applies to any lesser developed country with tropical forests and
qualified U.S. debt. The authorized amount would be used to compensate
the Treasury Department for any revenues lost due to the restructuring
of outstanding debt.
This legislation gives the President authority to reduce debt owed to
the United States as a result of any credit extended through specific
loan programs. In exchange, the developing countries would establish
funds in their local currency to preserve and restore tropical forests.
To ensure accountability, funds shall be administered and overseen by
U.S. Government officials, environmental nongovernmental organizations
active in the beneficiary country, and scientific or academic
organizations.
To qualify for assistance, countries must meet the criteria
established by Congress under EAI, including that the government must
be democratically elected, has not provided support for acts of
international terrorism, is not failing to cooperate on international
narcotics control matters, and does not participate in a consistent
pattern of gross violations of internationally recognized human rights.
Mr. President, I believe this is an important bill that, if passed,
will go a long way to helping protect some of the world's most
ecologically sensitive and vital areas. The Tropical Forest
Conservation Act promotes debt reduction, investment reforms, community
based conservation, and sustainable use of the environment. It has the
support of numerous environmental organizations, including Conservation
International, the Nature Conservancy, and the World Wildlife Fund. I
urge my colleagues here in the Senate to support the legislation as
well.
Mr. LEAHY. Mr. President, I am pleased to join Senators Lugar, Biden,
and Chafee in introducing the ``Tropical Forest Conservation Act of
1998.'' This legislation embodies a motto we take to heart in Vermont:
``Act Locally, Think Globally.'' From our campaign to ban landmines,
Vermonters again learned the power of this maxim.
Vermonters understand the social, economic and environmental impacts
of deforestation. We started this century with 75 percent of Vermont
forestland cleared for agriculture. Today, more than 80 percent of
Vermont is forested. Rebuilding our forests and the Vermont tradition
of living close to the land has helped Vermonters recognize that our
healthy forests are a valued legacy which holds the key to achieving
prosperity. This is the purpose of the Tropical Forest Conservation Act
of 1998.
The Tropical Forest Conservation Act will authorize more than $350
million over three years to enable developing countries to restructure
their debt and use the new resources to protect their tropical forests.
The Tropical Forest Conservation Act of 1998 gives each country the
power to protect its own resources without having to risk the health of
its forests.
Many developing countries have resorted to rapid development,
including clear-cutting and slash-and-burn stripping of tropical
forests, as ways to try to escape their debts. These forests contain a
majority of the Earth's biological resources which provide the
ingredients for many lifesaving medicines as well as providing us with
the genetic sources to maintain healthy agricultural crops.
Protection of these tropical forests also gives us with an
opportunity to address one of the most critical global environmental
issues facing us in the next century--global climate change. These
forests serve important carbon sinks which store greenhouse gases and
help regulate global temperatures.
If we are going to reap these benefits though, we have to let nature
do its work. This requires creative approaches to offer incentives to
these developing countries to conserve forest resources for theirs, and
our, children and grandchildren. The Tropical Forest Conservation Act
will help stem the rapid rate of deforestation and degradation of these
sensitive ecosystems.
As a Vermonter, I respect the importance of forests and the tough
decisions which often have to be made in order to preserve them. I
believe that this bill will make those tough decisions easier for
countries which possess some of our world's most precious resources--
tropical forests.
______
By Mr. HATCH (for himself, Mr. Campbell, Mr. McCain, Mr. Abraham,
Mr. Domenici, Mr. Grassley, and Mrs. Hutchison):
S. 1759. A bill to grant a Federal charter to the American GI Forum
of the United States; to the Committee on the Judiciary.
the american g.i. forum federal charter act of 1998
Mr. HATCH. Mr. President, I rise today, on behalf of myself and a
number of my colleagues--Senators Campbell, McCain, Abraham, Domenici,
Grassley, and Hutchison--to introduce a bill to grant a federal charter
to the American GI Forum a National Veterans Family Organization.
The American GI Forum, a nonprofit Section 501(c)(4) corporation, was
founded on March 26, 1948, in Corpus Christi, Texas by the late Dr.
Hector P. Garcia, a medical doctor who was an Army veteran of World War
II, and other visionary Mexican American veterans. This year, 1998, the
American GI Forum will celebrate its 50th Year of service to our
Nation's veterans and their families. Then, as now, the American GI
Forum is dedicated to addressing issues affecting Hispanic veterans and
their families.
As the American GI Forum enters its 50th Year, we believe it is
fitting to secure passage of this important legislation which would
recognize and grant the American GI Forum a federal charter. A federal
charter is an honorary recognition that does not convey any special
status or authority. However, within the veterans community a federal
charter is deemed to be recognition of a national veterans
organization's commitment and service to our nation's veterans. Also,
other entities sometimes distinguish between Veterans Service
Organizations which are congressionally-chartered and those which are
not. For example, the web
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page of the House Committee on Veterans' Affairs separately lists
``Congressionally-Chartered Veterans Service Organizations'' and
``Other Veterans Service organizations and Military Associations''
(http://www.house.gov/va/vetlinks.htm).
A congressional charter would prove an appropriate tribute to the
selfless sacrifices and tireless work of their beloved Founder, Dr.
Garcia, and the countless Hispanic Americans who have answered and
continue to answer America's call to fight for and defend the freedom
of all Americans. Having earned the highest number of medals of honor
per capita, Hispanic Americans have a distinguished record of valor and
patriotism.
Today, the American GI Forum has more than 500 chapters in the United
States and Puerto Rico. Though predominately Hispanic, the AGIF is open
to all veterans and their families. The organization is comprised of
three elements--the Veterans Forum, the Women's Forum, and the Youth
Forum. On a local level, American GI Forum chapters function under a
regional and/or a state structure. The elected officers of each state
organization serve as members of the National Board of Directors. The
National Commander and other National officers are elected at our
National Convention and are also members of the National Board of
Directors.
The patriotism of this community, and their willingness to make daily
sacrifices and even the ultimate sacrifice to preserve the freedoms we
all enjoy is inspiring, and deserves our support, recognition and
gratitude. On behalf of my colleagues and myself, I urge you to join us
in sponsoring this legislation to grant a federal charter to this
deserving organization.
______
By Mr. LEVIN:
S. 1760. A bill to amend the National Sea Grant College Program Act
to clarify the term Great Lakes; to the Committee on Commerce, Science,
and Transportation.
great lakes legislation
Mr. LEVIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1760
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
After every place in the National Sea Grant College Program
Act (33 U.S.C. 1121 et seq.) where the term Great Lakes
appears insert: ``and Lake Champlain.''
Strike section 203(5) of the National Sea Grant College
Program Act (33 U.S.C. 1122) and renumber the following
paragraphs accordingly.
____________________