[Congressional Record Volume 144, Number 146 (Wednesday, October 14, 1998)]
[Senate]
[Page S12582]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             BRIBERY IN INTERNATIONAL BUSINESS TRANSACTIONS

  Mr. FEINGOLD. Mr. President, I want to bring to the Senate's 
attention an excellent editorial published by the Washington Post on 
Wednesday, October 7, 1998 concerning the OECD Convention on Combating 
Bribery of Foreign Public Officials in International Business 
Transactions.
  This convention seeks to establish worldwide standards for the 
criminalization of the bribery of foreign officials to influence or 
retain business. Just over 20 years ago the Congress passed the Foreign 
Corrupt Practices Act, or FCPA. This landmark legislation, which I am 
proud to say was sponsored by one of Wisconsin's most respected elected 
officials, Senator William Proxmire, was enacted after it was 
discovered that some American companies were keeping slush funds for 
making questionable and/or illegal payments to foreign officials to 
help land business deals.
  For these 20 years, the FCPA has succeeded at curbing U.S. corporate 
bribery of foreign officials by establishing extensive bookkeeping 
requirements to ensure transparency and by criminalizing the bribery of 
foreign officials.
  The OECD treaty, which passed the Senate unanimously earlier this 
year, would bring most of our major trading partners up to the same 
standards that U.S. companies have been exercising since the FCPA 
became law.
  Mr. President, I consider this treaty, and the implementing 
legislation, S. 2375, that accompanies it, to be important work of the 
Congress. However, as the Washington Post noted in its editorial, the 
House of Representatives has yet to pass this legislation.
  As a member of the Senate Committee on Foreign Relations, which had 
the responsibility to recommend the Senate provide its advice and 
consent on this treaty, I hope the House will move quickly to pass the 
implementing legislation prior to adjournment.
  Mr. President, I ask unanimous consent that the text of the October 
7, 1998, Washington Post editorial be printed in the Record at this 
point.
  There being no objection, the editorial was ordered to be printed in 
the Record, as follows:

                [From the Washington Post, Oct. 7, 1998]

                         A Vote Against Bribes

       Its not every day that Congress has an opportunity to pass 
     legislation that has no down side whatsoever, that can only 
     help the United States and U.S. businesses; that fulfills a 
     demand Congress itself made 10 years ago; and that--perhaps 
     rarest of all--has the ardent support of both President 
     Clinton and Sen. Jesse Helms. The House has such an 
     opportunity now, with a bill to implement an international 
     treaty combating bribery overseas. Yet, perhaps not 
     surprisingly, even this universally acclaimed legislation is 
     no longer a sure thing.
       More than 20 years ago, Congress passed the Foreign Corrupt 
     Practices Act, which outlawed the paying of bribes by U.S. 
     business executives to win foreign contracts. It was and 
     remains a good law, and by most accounts it has had a 
     beneficial effect on how Americans do business. But it's also 
     put them at a competitive disadvantage to European and other 
     companies that not only aren't prohibited from paying bribes 
     but in many cases can deduct the payoffs from their taxes. 
     The administration estimates that U.S. industry may lost $30 
     billion worth of contracts each year for its honesty.
       The Clinton administration last year negotiated a treaty 
     with other major industrial countries that would essentially 
     extend the Foreign Corrupt Practices Act to all of them. 
     Instead of the United States lowering its standards, long 
     years of diplomacy finally persuaded Europeans to raise 
     theirs. The Senate unanimously ratified the treaty, citing 
     what Sen. Helms called an ``urgent need to push--and I use 
     that word advisedly--to push our European allies'' to 
     criminalize bribery overseas. Now the House must make U.S. 
     law consistent with the treaty. No one is against this. But 
     the press of business may put the bill in danger.
       This may seem less urgent than other matters awaiting 
     congressional action. But corruption is at the root of the 
     financial crisis sweeping the world. Rich countries are good 
     at telling their poor counterparts to behave; here is a 
     change to show that the rich are willing to police 
     themselves, too. For the United States, which has been doing 
     such policing for two decades, this is a no-lose proposition. 
     But if Congress doesn't approve the treaty, Europe and Japan 
     won't either. The House should pocket this win before it's 
     too late.

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