[Congressional Record Volume 144, Number 30 (Wednesday, March 18, 1998)]
[Senate]
[Pages S2215-S2216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 1794. A bill to provide for the adjudication of certain claims 
against the Government of Iraq and to ensure priority for United States 
veterans filing such claims; to the Committee on the Judiciary.


      The Gulf War Veterans' Iraqi Claims Protection Act of 1998.

  Mr. HARKIN. Mr. President, I rise today to introduce important 
legislation for the men and women of our armed forces who served in the 
Persian Gulf during operation Desert Shield and Desert Storm.
  The U.S. Government has $1.3 billion in impounded Iraqi funds from 
the Gulf War. U.S. businesses, the U.S. government, private citizens 
and over 3,000 American veterans have currently filed over $5 billion 
in claims against these funds. No criteria exists for dispersing these 
funds and no system of priorities is in place to ensure a fair 
settlement.
  I believe the U.S. should protect those who safe guarded the 
interests of America during the Gulf War by ensuring their ability to 
file for claims against the impounded Iraqi money. My legislation, 
``The Gulf War Veterans' Iraqi Claims Protection Act of 1998,'' will 
put to rest, once and for all, lingering concerns about who should have 
priority in receiving these funds.
  This legislation will:
  Grant priority status to all retired, reserve or active duty members 
of the U.S. Armed Forces who may wish to file claims arising out of 
Iraq's invasion of Kuwait;
  Establish a fund in the U.S. Treasury for payment of these claims; 
and
  Create a formula for payments based on priority status.
  Mr. President, no one disputes that many U.S. businesses and many 
American non-veteran citizens have legitimate claims to this money. 
However, I firmly believe that our Gulf War veterans, who risked their 
lives for their country and our freedom, deserve the highest priority 
in having their claims resolved. I hope all of my colleagues will join 
me in supporting our Gulf War veterans by supporting this legislation.
  I have a copy of a letter from the Veterans of Foreign Wars (VFW) in 
support of this legislation which I ask

[[Page S2216]]

unanimous consent be printed in the Record along with the text of the 
legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1794

       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 ``Gulf War Veterans' Iraqi 
     Claims Protection Act of 1998''.

     SEC. 2. ADJUDICATION OF CLAIMS.

       (a) Claims Against Iraq.--The United States Commission is 
     authorized to receive and determine the validity and amounts 
     of any claims by nationals of the United States against the 
     Government of Iraq.
       (b) Decision Rules.--In deciding claims under subsection 
     (a), the United States Commission shall apply, in the 
     following order
       (1) applicable substantive law, including international 
     law; and
       (2) applicable principles of justice and equity.
       (c) Priority Claims.--Before deciding any other claim 
     against the Government of Iraq, the United States Commission 
     shall, to the extent practical, decide all pending non-
     commercial claims of active, retired, or reserve members of 
     the United States Armed Forces, retired former members of the 
     United States Armed Forces, and other individuals arising out 
     of Iraq's invasion and occupation of Kuwait or out of the 
     1987 attack on the USS Stark.
       (d) Applicability of International Claims Settlement Act.--
     To the extent they are not inconsistent with the provisions 
     of this Act, the provisions of title I (other than section 
     2(c)) and title VII of the International Claims Settlement 
     Act of 1949 (22 U.S.C. 1621-1627 and 1645-1645o) shall apply 
     with respect to claims under this Act.

     SEC. 3. CLAIMS FUNDS.

       (a) Iraq Claims Fund.--The Secretary of the Treasury is 
     authorized to establish in the Treasury of the United States 
     a fund (hereafter in this Act referred to as the ``Iraq 
     Claims Fund'') for payment of claims under section 2(a). The 
     Secretary of the Treasury shall cover into the Iraq Claims 
     Fund such amounts as are allocated to such fund pursuant to 
     subsection (b).
       (b) Allocation of Proceeds From Iraqi Asset Liquidation.--
       (1) In general.--The President shall allocate funds 
     resulting from the liquidation of assets pursuant to section 
     4 in the manner the President determines appropriate between 
     the Iraq Claims Fund and such other accounts as are 
     appropriate for the payment of claims of the United States 
     Government, subject to the limitation in paragraph (2).
       (2) Limitation.--The amount allocated pursuant to this 
     subsection for payment of claims of the United States 
     Government may not exceed the amount which bears the same 
     relation to the amount allocated to the Iraq Claims Fund 
     pursuant to this subsection as the sum of all certified 
     claims of the United States Government bears to the sum of 
     all claims certified under section 2(a). As used in this 
     paragraph, the term ``certified claims of the United States 
     Government'' means those claims of the United States 
     Government which are determined by the Secretary of State to 
     be outside the jurisdiction of the United Nations Commission 
     and which are determined to be valid, and whose amount has 
     been certified, under such procedures as the President may 
     establish.

     SEC. 4. AUTHORITY TO VEST IRAQI ASSETS.

       The President is authorized to vest and liquidate as much 
     of the assets of the Government of Iraq in the United States 
     that have been blocked pursuant to the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) as may 
     be necessary to satisfy claims under section 2(a), as well as 
     claims of the United States Government against Iraq which are 
     determined by the Secretary of State to be outside the 
     jurisdiction of the United Nations Commission.

     SEC. 5. REIMBURSEMENT FOR ADMINISTRATIVE EXPENSES.

       (a) Deduction.--In order to reimburse the United States 
     Government for its expenses in administering this Act, the 
     Secretary of the Treasury shall deduct 1.5 percent of any 
     amount covered into the Iraq Claims Fund.
       (b) Deductions Treated as Miscellaneous Receipts.--Amounts 
     deducted pursuant to subsection (a) shall be deposited in the 
     Treasury of the United States as miscellaneous receipts.

     SEC. 6. PAYMENTS.

       (a) In General.--The United States Commission shall certify 
     to the Secretary of the Treasury each award made pursuant to 
     section 2. The Secretary of the Treasury shall make payment, 
     out of the Iraq Claims Fund, in the following order of 
     priority to the extent funds are available in such fund:
       (1) Payment of $10,000 or the principal amount of the 
     award, whichever is less.
       (2) For each claim that has priority under section 2(c), 
     payment of a further $90,000 toward the unpaid balance of the 
     principal amount of the award.
       (3) Payments from time to time in ratable proportions on 
     account of the unpaid balance of the principal amounts of all 
     awards according to the proportions which the unpaid balance 
     of such awards bear to the total amount in the Iraq Claims 
     Fund that is available for distribution at the time such 
     payments are made.
       (4) After payment has been made of the principal amounts of 
     all such awards, pro rata payments on account of accrued 
     interest on such awards as bear interest.
       (5) After payment has been made in full of all the awards 
     payable out of the Iraq Claims Fund, any funds remaining in 
     that fund shall be transferred to the general fund of the 
     Treasury of the United States.
       (b) Unsatisfied Claims.--Payment of any award made pursuant 
     to this Act shall not extinguish any unsatisfied claim, or be 
     construed to have divested any claimant, or the United States 
     on his or her behalf, of any rights against the Government of 
     Iraq with respect to any unsatisfied claim.

     SEC. 7. AUTHORITY TO TRANSFER RECORDS.

       The head of any Executive agency may transfer or otherwise 
     make available to the United States Commission such records 
     and documents relating to claims authorized to be adjudicated 
     by this Act as may be required by the United States 
     Commission in carrying out its functions under this Act.

     SEC. 8. STATUTE OF LIMITATIONS; DISPOSITION OF UNUSED FUNDS.

       (a) Statute of Limitations.--Any demand or claim for 
     payment on account of an award that is certified under this 
     Act shall be barred one year after the publication date of 
     the notice required by subsection (b).
       (b) Publication of Notice.--
       (1) In general.--At the end of the 9-year period specified 
     in paragraph (2), the Secretary of the Treasury shall publish 
     a notice in the Federal Register detailing the statute of 
     limitations provided for in subsection (a) and identifying 
     the claim numbers and awardee names of unpaid certified 
     claims.
       (2) Publication date.--The notice required by paragraph (1) 
     shall be published 9 years after the last date on which the 
     Secretary of the Treasury covers into the Iraq Claims Fund 
     amounts allocated to that fund pursuant to section 3(b).
       (c) Disposition of Unused Funds.--
       (1) Disposition.--At the end of the 2-year period beginning 
     on the publication date of the notice required by subsection 
     (b), the Secretary of the Treasury shall dispose of all 
     unused funds described in paragraph (2) by depositing in the 
     Treasury of the United States as miscellaneous receipts any 
     such funds that are not used for such additional payments.
       (2) Unused funds.--The unused funds referred to in 
     paragraph (1) are any remaining balance in the Iraq Claims 
     Fund.

     SEC. 9. DEFINITIONS.

       As used in this Act:
       (1) Executive agency.--The term ``Executive agency'' has 
     the meaning given that term by section 105 of title 5, United 
     States Code.
       (2) Government of iraq.--The term ``Government of Iraq'' 
     includes agencies, instrumentalities, and controlled entities 
     (including public sector enterprises) of that government.
       (3) United nations commission.--The term ``United Nations 
     Commission'' means the United Nations Compensation Commission 
     established pursuant to United Nations Security Council 
     Resolution 687 (1991).
       (4) United states commission.--The term ``United States 
     Commission'' means the Foreign Claims Settlement Commission 
     of the United States.
                                                                    ____

                                          Veterans of Foreign Wars


                                         of the United States,

                                   Washington, DC, March 18, 1998.
     Hon. Tom Harkin,
     U.S. Senate,
     Washington, DC.
       Dear Senator Harkin: On behalf of the VFW and its 2.1 
     million members I thank you for taking the initiative to 
     introduce The Gulf War Veterans' Iraqi Claims Protection Act 
     of 1998. The bill will ensure that individual veterans claims 
     are given a priority for receiving compensation from Iraqi 
     assets frozen in the United States by our Government.
       The VFW has consistently taken the position since 1993 that 
     veterans of Desert Shield and Desert Storm should have 
     priority status regarding compensation from Iraq for injury 
     and illness they received in line of duty.
       Again, thank you for your show of strong support on behalf 
     of all veterans, especially those who went to the Persian 
     Gulf, fought the war, and in some cases suffered personal 
     injuries, material losses, and even death. It will be our 
     pleasure to participate in any manner necessary to further 
     assist you in this effort.
           Sincerely,
                                                     John E. Moon,
                                               Commander-in-Chief.
                                 ______