[Congressional Record Volume 144, Number 124 (Thursday, September 17, 1998)]
[Extensions of Remarks]
[Page E1743]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E1743]]



   THE LIQUIDATION OF ASSETS FROM THE POLISH-AMERICAN ENTERPRISE FUND

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Thursday, September 17, 1998

  Mr. HAMILTON. Mr. Speaker, 9 years ago President Bush requested, and 
the Congress authorized, the creation of Enterprise Funds for Poland 
and Hungary, in order to spur economic reform and the growth of private 
enterprise in these countries.
  The Polish-American Enterprise Fund (PAEF) has succeeded in its 
mission, and is now prepared to return the funds it originally received 
from the U.S. government.
  Because there are so many views inside and outside the government 
about what should happen to assets of the PAEF, and because the 
guidance provided by the Congress 9 years ago on the disposition of 
those assets was neither clear nor explicit, I believe the Congress 
should authorize, by statute, how the assets of the PAEF are 
distributed. It is important for Congress to make a decision on this 
matter because it will establish a precedent for the distribution of 
assets from other Enterprise Funds in the future.
  The text of my August 10, 1998 letter to Secretary Albright and the 
Department of State's reply of September 11th follow:

          Congress of the United States, Committee on 
           International Relations, House of Representatives,
                                  Washington, DC, August 10, 1998.
     Hon. Madeleine K. Albright,
     Secretary of State, Department of State,
     Washington, DC.
       Dear Madeleine: I write regarding any decision you may 
     reach with respect to the distribution of assets resulting 
     from the liquidation of assets of the Polish-American 
     Enterprise Fund (PAEF).
       The SEED Act of 1989 does not give clear or explicit 
     guidance on how assets from Enterprise Funds should be 
     distributed, once these Funds are liquidated, and I believe 
     Congress should be involved in a decision on how assets from 
     them are distributed.
       In particular, in the case of the Polish-American 
     Enterprise Fund, valued at over $250 million, I believe 
     Congress should authorize by statute how assets from this 
     Fund are distributed. I appreciate that the legislative 
     process can be slow, but I believe a decision reached in this 
     way will best represent a consensus that reflects the views 
     of the entire U.S. government.
       The consensus-building process is especially important 
     because a decision on the Polish-American Enterprise Fund 
     will establish a precedent for the distribution of assets 
     from other Enterprise Funds in the future.
       I appreciate your attention to this issue.
       With best regards,
           Sincerely,
                                                  Lee H. Hamilton,
                                        Ranking Democratic Member.


     
                                  ____
                                     U.S. Department of State,

                               Washington, DC, September 11, 1998.
     Hon. Lee H. Hamilton, 
     Committee on International Relations,
     House of Representatives.
       Dear Mr. Hamilton: Thank you for your letter of August 10, 
     1998, to the Secretary, concerning the distribution of funds 
     resulting from any liquidation of assets of the Polish-
     American Enterprise Fund (PAEF). The Secretary shares your 
     concerns about this important issue, and is aware how any 
     decision reached about the PAEF could establish a precedent 
     for the future distribution of assets from other Enterprise 
     funds.
       As you well know, the fact that the PAEF has been so 
     successful poses some unique problems when the issue of its 
     dissolution is raised. Due to the wide interest in the Fund, 
     a number of varied proposals have been given to the 
     Administration regarding how reflow funds should be handled. 
     Administration officials have been consulting with key 
     members of the Congress and their staff (including those of 
     your own), the PAEF Board of Directors, the Polish government 
     and the Polish-American community, to arrive at a 
     satisfactory solution. While a formula acceptable to all 
     concerned has not yet been achieved, we have and will 
     continue to consult with members and staff of the House 
     International Relations Committee as part of this process.
       We hope that this information has been helpful to you. 
     Please do not hesitate to contact us if we can be of further 
     assistance in this or any other matter.
           Sincerely,
                                                   Barbara Larkin,
                         Assistant Secretary, Legislative Affairs.

     

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