[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

[[Page S1956]]

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

[[Page S1957]]

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.

                          ____________________