[Congressional Record Volume 144, Number 144 (Monday, October 12, 1998)]
[Extensions of Remarks]
[Pages E2095-E2096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTERNATIONAL ANTI-BRIBERY AND FAIR COMPETITION ACT OF 1998

                                 ______
                                 

                               speech of

                          HON. JOHN D. DINGELL

                              of michigan

                    in the house of representatives

                        Friday, October 9, 1998

  Mr. DINGELL. Mr. Speaker, we all have a strong interest in seeing 
that there is a level playing field on which U.S. business and U.S. 
workers can compete in world markets.
  The bill are considering today, H.R. 4353, points out just how 
unlevel that playing field can be. In May of 1976, Congress received 
from the Securities and Exchange Commission an extensive ``Report on 
Questionable and Illegal Corporate Payments and Practices'' that 
revealed corrupt foreign payments by over 300 U.S. companies involving 
hundreds of millions of dollars and the falsification of accounting 
records and the deceit of auditors.
  Since 1977, U.S. law has made it a crime from American businessmen to 
bribe foreign government officials to obtain business contracts. Yet, 
Germany and other countries do not just fail to prohibit bribery on the 
part of their business representatives, they make it a tax deductible 
expense.
  Last December, 33 of our major trading partners signed the OECD 
Convention on Combating Bribery of Foreign Public Officials in 
International Business Transactions. Under this agreement, our major 
trading partners commit, for the first time, to make business-related 
bribes to foreign officials a crime under their respective legal 
systems.
  H.R. 4353 expands and strengthens the Foreign Corrupt Practices Act 
(FCPA) to implement U.S. obligations under the OECD convention. It 
expands the FCPA to include bribes to foreign public officials that are 
made to secure ``any improper advantage.'' The bill also expands the 
FCPA to cover not only U.S. businesses and issuers of securities, but 
also

[[Page E2096]]

any foreign natural or legal person that engages in a prohibited act 
within the territory of the United States.
  In addition, this legislation expands the definition of public 
official in the FCPA to include officials of public international 
organizations. It makes foreign employees and agents of issuers and 
domestic concerns subject to criminal penalties in the same way that 
U.S. citizens are. This legislation also amends the FCPA to provide for 
jurisdiction even when U.S. businesses and nationals engage in the 
offering of bribes wholly outside the United States.
  Mr. Speaker, this legislation contains strict monitoring and 
reporting requirements to ensure that our OECD partners fully implement 
the anti-bribery convention under their laws. It requires that the 
Administration report to Congress concerning its efforts to strengthen 
the Convention by extending the prohibitions contained in the 
Convention to cover bribes to political parties, party officials, and 
candidates for political office.
  Mr. Speaker, the Senate has already passed legislation ratifying and 
implementing the anti-bribery convention. Although we are rapidly 
approaching the end of this Congress, it is my hope that Congress can 
complete action on this important legislation this year.
  However, the legislation before us also contains matters having to do 
with international satellites, which are unrelated to the 
implementation of the anti-bribery convention. These satellite 
provisions are not in the implementing legislation passed by the 
Senate. It is my sincere hope that these extraneous satellite 
provisions will not prevent the House and Senate from sending the 
President legislation implementing the anti-bribery convention, before 
this Congress adjourns.
  The Commerce Department reports that there have been significant 
charges of bribery associated with international commercial contracts 
valued at more than $100 billion since 1994. Mr. Speaker, bribery hurts 
American business and American workers who must compete in the world 
market place. American business and American workers need the 
protections the OECD Convention provides, and they need them now.
  If we fail to implement the anti-bribery convention because of an 
ability to reach agreement on extraneous matters, American business and 
American workers will pay the price. Delay on our part will only give 
our OECD partners an excuse to delay their implementation of these 
important anti-bribery commitments.
  Mr. Speaker, swift action by this House, and this Congress, is 
needed, so the United States can set an example for our OECD partners 
to ratify and fully implement this important convention, as well. I 
hope my colleagues will give this important legislation their strong 
support.

                          ____________________