[Congressional Record Volume 144, Number 54 (Tuesday, May 5, 1998)]
[House]
[Pages H2776-H2777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FUNDING FOR THE INTERNATIONAL MONETARY FUND

  The SPEAKER pro tempore (Mr. LaHOOD). Under a previous order of the 
House, the gentleman from Hawaii (Mr. Abercrombie) is recognized for 5 
minutes.
  Mr. ABERCROMBIE. Mr. Speaker, today I call on both the Democratic and 
Republican leaders of the House to pass the $18 billion International 
Monetary Fund as soon as possible. It is urgent for Hawaii's citizens, 
workers, and the businesses that I represent.
  In early winter 1997, economies in South Korea, Thailand, Malaysia, 
and Indonesia collapsed. The effects on Hawaii have stifled recovery 
from the deepest recession the State has experienced in 50 years.
  Problems began when the Japanese economy faltered in 1991. Tourism 
and direct foreign investment plunged. Devaluation of the yen and now 
other

[[Page H2777]]

Asian currencies have resulted in the Hawaii recession.
  Unemployment is at 6.5 percent. And by the way, Mr. Speaker, the 6.5 
percent may not seem very high to some others in the country who have 
experienced much greater percentages in times past, but for Hawaii that 
is a very, very high number.
  Tourism last month dropped 14 percent from March a year ago. Costs 
for the Japanese tourist or businessperson are more than 50 percent 
higher than they were in 1991. Investment decline has resulted in 
construction contract receipts falling 40 percent since 1991. Business 
and individual bankruptcy are at record high levels.
  Business, labor, industry, and government in Hawaii are working on 
solutions but cannot provide direct economic aid to Asian countries or 
restructure Asian economies. Only Congress can and must do that in 
conjunction with the IMF.
  Current funding proposals have been derailed over unrelated issues, 
such as abortion. There are adequate vehicles for dealing with those 
issues, and the leadership should drop them and bring an IMF bill to 
the House floor immediately.
  Economists indicate it will take 1 to 3 years for Asian economies to 
recover, even with IMF aid. Although there is no quick fix, we must 
start now, because Hawaii and the U.S. economies are being damaged by 
inaction. And I stress the U.S. economy in general as well as that of 
Hawaii in particular, Mr. Speaker.
  Knowing the relationship between IMF and America's foreign trade, 
which includes tourism and the movement of investment capital, 
President Clinton recently said that IMF funding was something ``we owe 
to the future of this country and to our children.'' That certainly 
applies to Hawaii.
  That is why I wrote today to the Speaker and Democratic leader, the 
gentleman from Missouri (Mr. Gephardt) urging immediate action. I have 
the letter here, Mr. Speaker, and I will submit it as part of my 
remarks.
  Threat of economic destabilization remains, and delay is only 
intensifying the problem. The IMF must be allowed to do its job, 
including helping restructure the economic systems in Asia which 
resulted in the need for the multibillion-dollar bailout. But the IMF 
cannot do its job without the funding necessary to stabilize these 
economies.
  Mr. Speaker, we must not put America's economic well-being at risk by 
ignoring the Asian financial crisis. We must not put Hawaii's economic 
well-being at risk by ignoring the Asian financial crisis. I urge that 
the IMF bill, the International Monetary Fund bill, be brought to the 
House floor immediately.
  Mr. Speaker, the letter I earlier referred to is as follows:
                                                 Neil Abercrombie,


                                         1st District, Hawaii,

                                                      May 5, 1997.
     Hon. Newt Gingrich,
     U.S. Capitol Building,
     Washington, DC.
       Dear Mr. Speaker: On behalf of the people of Hawaii who 
     have been suffering through the toughest economic times in 
     more than half a century, I urge that the funding bill be 
     brought to the House floor expeditiously. I am deeply 
     concerned about the failure of the House of Representatives 
     to act on the $18 billion in emergency funding for the 
     International Monetary Fund (IMF) to deal with the Asian 
     financial crisis.
       As you may know, during the last quarter of 1997, a 
     financial crisis swept through several Asian countries. In 
     response, the IMF came up with proposals to strengthen the 
     economies of Thailand, South Korea, Indonesia and Malaysia 
     and, in the process, reduce the threat of destabilization to 
     the rest of Asia and the Pacific Rim. In this regard, it is 
     vital that Congress provide the IMF with the necessary 
     resources to adequately deal with the Asian financial crisis. 
     Failure to enact IMF funding potentially jeopardizes our 
     nation's ability to sustain economic growth. In Hawaii, the 
     effects are more immediate. The Asian financial crisis, 
     combined with the problems of the Japanese economy, has 
     already had a negative economic impact on the state. 
     Continued neglect by Congress will exacerbate this situation 
     and make it more difficult for Hawaii to deal with its 
     greatest economic challenge since statehood.
       Since 1991, Hawaii's economy has been stagnant. Since that 
     time, the bankruptcy rate has skyrocketed and our 
     unemployment rate has grown and now ranks among the highest 
     in the nation. The primary reason for Hawaii's economic 
     problems can be attributed to the decline in travel and 
     tourism from Japan and other Asian countries as well as the 
     consequences of direct foreign capital being withdrawn from 
     investment in the state. In March, the number of visitors to 
     Hawaii was down by 40,000 compared to the same time last 
     year. The most dramatic loss was in the number of East-bound 
     visitors from Asia which declined 14 per cent. Equally 
     profound is the impact of the Yen currency devaluation. 
     Today, it costs a Japanese tourist or businessperson 50 
     percent more to stay in Hawaii than it did in 1991. No sector 
     of Hawaii's economy has been left untouched. Take for 
     instance the construction industry; contract receipts for 
     construction fell in 1997 to $2.9 billion, down from $3.2 
     billion in 1996, continuing into a 40 percent decline since 
     1991.
       Emergency funding for the IMF will not provide a quick fix 
     to the Asian financial crisis. The situation in Asia 
     developed over decades and economists have indicated that the 
     IMF-supervised policy adjustments will take one to three 
     years before they take hold. Yet, passage of the $18 billion 
     in emergency financing for the IMF funding is a necessary 
     step in resolving the crisis. I fear that inaction by 
     Congress will only intensify the problem.
       I understand there are many members of Congress who hold 
     strong views on issues which have become inextricably and 
     unfairly linked to the IMF funding bill. Congress has many 
     legislative vehicles with which to deliberate issues such as 
     the abortion policies of other nations. Holding the IMF 
     funding hostage to unrelated issues is not fair and runs 
     counterproductive to the efforts of all sectors of Hawaii 
     society--business, industry, labor and government--to resolve 
     our economic problems. Although there are steps that all of 
     those parties can and are taking, it is far beyond their 
     authority to address the need to restructure economies of 
     Asian countries. That is the proper role for the IMF, 
     Congress, and the federal government.
       I strongly urge that you and the other members of the 
     Republican leadership take immediate steps to resolve the 
     emergency funding issues for the IMF. We should not put the 
     well-being of our nation's economy at risk by ignoring the 
     Asian financial crisis. Emergency funding for the IMF cannot 
     be held captive to unrelated issues.
           Sincerely,
                                                  Neil Abercrombie
                                                Member of Congress

     

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