[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Extensions of Remarks]
[Pages E2285-E2286]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 INTERNATIONAL ANTI-BRIBERY ACT OF 1998

                                 ______
                                 

                               speech of

                         HON. EDWARD J. MARKEY

                            of massachusetts

                    in the house of representatives

                      Wednesday, October 14, 1998

  Mr. MARKEY. Mr. Speaker, S. 2375, the ``International Antibribery and 
Fair Competition Act of 1998'' is important legislation for this 
Congress to approve and for the President to sign. I am an original 
cosponsor of the House companion to this measure and fully support the 
bill we are approving today.
  International bribery and corruption continue to be problems 
worldwide and the Administration has done excellent work in gaining 
consensus among a large number of nations to crack down on these 
corrupt practices. The Commerce Department has stated that it has 
learned of significant allegations of bribery by foreign firms since 
1994 totalling over $100 billion. Taking action today to update the 
Foreign Corrupt Practices Act (FCPA) in concert with action to be taken 
by our major trading partners, is designed to achieve an international 
marketplace of greater integrity and fairness.
  Most of the provisions of this bill are identical to the provisions 
which passed the House a few weeks ago. Much time has been spent over 
the last few days to nail down provisions that are integral to any 
legislation hoping to pass muster as a comprehensive antibribery and 
fair competition measure. The legislation we are sending back over to 
the Senate takes modest steps toward a more equitable marketplace 
environment for international satellite telecommunications. The simple 
fact is that INTELSAT and Inmarsat are intergovernmental organizations 
that compete in the marketplace against private U.S. companies. This is 
unfair. Everyone recognizes that this must change. Even the U.S. 
signatory to these organizations--COMSAT--realizes that this situation 
has to change. No entity in the global marketplace ought to enjoy 
special privileges when competing against private American companies. 
American jobs and innovation are at stake.
  It is not surprising that intergovernmental organizations will do 
everything they can to perpetuate their current existence. It is also 
not surprising that monopolies and dominant providers will do 
everything they can to squash the competition. That is why it is often 
incumbent upon policymakers to act to curtail anticompetitive activity.
  In the international arena, American companies are trying to gain 
market access and win markets while intergovernmental organizations are 
trying everything in their power to slow down American competitors, 
using intergovernmental privileges and hiding anticompetitive action 
against American companies behind the cloak of special immunity granted 
ages ago. This has to end. What this legislation provides is a modest 
step to level the proverbial playing field. No marketplace participant 
ought to be immune from the legal parameters of the marketplace, no 
intergovernmental organization ought to compete against the private 
sector in delivering service to consumers.
  The bill before us contains provisions to address the special 
advantages of the intergovernmental satellite organizations and to 
ensure

[[Page E2286]]

that they do not improperly escape coverage by the FCPA. Thus the 
legislation is designed to make clear that bribery of intergovernmental 
organizations does not escape the coverage of the FCPA.
  It also contains provisions to remove the special advantages of such 
organizations. The legislation stipulates that international 
organizations providing commercial communications services shall not be 
accorded immunity from suit or legal process in connection with their 
role as a provider, directly or indirectly, of commercial 
telecommunications services to, from, or within the U.S. I believe this 
is an important step forward and one which recognizes that American 
companies should not suffer competitive disadvantages due to privileges 
and immunities enjoyed by intergovernmental organizations competing 
with the private sector but having failed to fully privatize in a pro-
competitive manner. In addition, the bill directs the President to 
secure the elimination, or substantial reduction, of all privileges and 
immunities that are accorded Intelsat and Inmarsat.
  Given that this will be the first time in a great number of years 
that the Congress has spoken on international satellite communications 
I believe it underscores the strong bipartisan desire of the Congress 
to move expeditiously toward a pro-competitive privatization of the 
intergovernmental organizations. Taken in the context of the 
overwhelming vote this year for H.R. 1872 in the House, the direction 
of policy desired by Members of Congress is clearly toward putting all 
companies on even footing and letting the marketplace decide winners 
and losers. Our overarching goal is a freely open competitive 
marketplace bringing to an end the era of government sanctioned 
communications cartels in satellite communications.
  I want to commend the leadership and tenacity of Chairman Bliley in 
ensuring that these important satellite provisions are in this 
comprehensive bill. I want to also commend the work of Chairman Mike 
Oxley, Mr. Dingell, as well as our Senate counterparts. In addition, I 
want to also salute the work of our Commerce Secretary Bill Daley, for 
spearheading this effort from the Administration and for the excellent 
result we have achieved due to his effort.

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