[Congressional Record Volume 147, Number 87 (Thursday, June 21, 2001)]
[Senate]
[Pages S6617-S6618]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. DeWine, and Mr. Feingold):
  S. 1084. A bill to prohibit the importation into the United States of 
diamonds unless the countries exporting the diamonds have in place a 
system of controls on rough diamonds, and for other purposes; to the 
Committee on Finance.
  Mr. DURBIN. Mr. President, I am introducing a bill today, along with 
Senator DeWine and Senator Feingold, to cut off the source of income 
that is fueling horrendous conflicts in Sierra Leone, Angola, and the 
Democratic Republic of Congo, the illicit trade in conflict diamonds.
  The brutal wars in these African Nations may be thousands of miles 
away, but the source of the funds that buy the weapons may be as close 
as your ring finger. Our legislation says, if you can't prove to U.S. 
Customs agents that your diamonds are legitimate, take your business 
and your diamonds somewhere else.
  I am pleased that the diamond industry and the human rights community 
are united in their support for this bill. They met many times with our 
staffs to work out a compromise that everyone is enthusiastically 
supporting.
  We can and must do more than look with horror at the pictures of 
children with missing hands, arms or legs. We must take a strong stand 
that says to the world that this nation, which purchases 65 percent of 
the world's diamonds, will not buy the diamonds that fund rebels and 
terrorists.
  American consumers who purchase diamonds for some happy milestone in 
their lives, like an engagement, wedding, or anniversary, must be 
assured that they are buying a diamond from a legitimate, legal, and 
responsible source.
  Setting up a system that would allow American consumers to have 
confidence that they are buying ``clean'' diamonds would also serve our 
local jewelers and diamond retailers.
  It is hard to imagine today that diamonds could become unfashionable, 
but if consumers associate diamonds with guerrillas who hack off the 
arms of children, instead of the joyous life events that are now 
associated with the gemstones, the diamond industry in our country 
could suffer a sharp decline.
  The jewelers in our local malls and downtown shops do not want to 
support rebels and terrorists in Africa any more than consumers do. 
This legislation aims to protect our local merchants, as well as cut 
off funds to African rebels.
  I heard from a jeweler in my hometown of Springfield, Illinois, Bruce 
Lauer, President of the Illinois Jewelers Association, who wrote:

       The use of diamond profits to fund warfare and atrocities 
     in parts of Africa is abhorrent to all of us. The system 
     created by your bill to bar U.S. imports of conflict stones 
     will allow retail jewelers to be confident that the diamonds 
     and diamond jewelry they sell have no part in the violence 
     and suffering that are prevalent in Sierra Leone, Angola, or 
     other conflict areas.
       As the owner of Stout & Lauer Jewelers in Springfield, I 
     know first hand the importance of diamonds to my customers. A 
     diamond is a very special purchase symbolizing love, 
     commitment and joy. It should not be tarnished with doubt. . 
     ..We want to be able to assure our customers unequivocally 
     that the diamonds in our stores come from legitimate sources.

  What carnage are these conflicts in Africa causing? The photos of 
maimed and mutilated men, women, and children in Sierra Leone are the 
most visible results of the terror tactics by the Revolutionary United 
Front, RUF. This rebel group has also used murder and rape, pressed 
children into becoming soldiers, and caused a mass movements of 
refugees as people flee the terror. The Congressional Research Service 
has released some conflict-related statistics for the Sierra Leone, 
Angola, and the Democratic Republic of Congo. I would like to repeat 
some of them for the Record: Out of a population of more than 5 million 
people, there are approximately 490,000 refugees from Sierra Leone in 
neighboring countries and anywhere from 500,000 to 1.3 million 
internally displaced people. Estimates of the numbers of people who 
have died in the conflict range from 20,000 to 50,000. More than 5,000 
children have fought in direct combat roles, with 5,000 more used in 
supporting roles. There are no figures on how many people lost limbs or 
were otherwise mutilated, but World Vision reports that there are 2,000 
amputees in just one camp in Freetown.
  In the long conflicts in Angola and Democratic Republic of Congo, 
DRC, diamonds have been a contributing factor. The United Nations 
recently issued a report showing that the conflict in the DRC has 
become increasingly resource driven, as parties illegally exploit 
diamonds and other mineral wealth, including tantilite, the mineral now 
in high demands for cell phones and other electronic devices.
  Last year the United States worked with the international community 
and the diamond industry to stem the flow of conflict diamonds. The 
United Nations has taken action to ban the conflict diamond trade and 
recommended that a ``simple and workable international certification 
scheme for rough diamonds be created.''
  The United States also participated in May 2000 in the 
Technical Forum on Diamonds, which became known as the ``Kimberley 
Process'' after the city in South Africa where the group met, along 
with representatives from other countries, the diamond industry, and 
non-governmental organization. The group recommended the establishment 
of an international export regime like the one set up in the bill I 
introduce today. However, since that time negotiations on setting up 
such a system have slowed. I believe that this bill will help spur 
action to complete negotiations and set up a system to track and 
certify diamond exports.

  The bill that I am introducing today with Senator DeWine and Senator 
Feingold is similar to H.R. 918, introduced by Congressman Tony Hall 
and Congressman Frank Wolf in the House. But our bill also incorporates 
some changes that represent a compromise that the diamond industry and 
the human rights community were able to come together to support. The 
bill was also written to be compliant with US obligations in the World 
Trade Organization, WTO.
  Among other provisions, the bill does the following: The bill 
requires diamond imports--including rough, polished, and jewelry--to 
come from a ``clean stream'' and spells out the details of this system 
(which may be superceded by an international agreement if the United 
States is a party to it). Implementation of any system shall be 
monitored by US agencies and a presidential advisory commission, which 
include human rights advocates and representatives of the diamond 
industry.
  Violators will be subject to civil and criminal penalties, including 
confiscation of contraband. Significant violators' US assets may be 
blocked. Proceeds from penalties and the sale of diamonds seized as 
contraband shall be used to help war victims, through humanitarian 
relief and micro-credit development projects.
  Diamond-sector projects in countries that fail to adopt a system of 
controls shall not be eligible for loan guarantees or other assistance 
of the US Export-Import Bank or OPIC.
  The bill provides waiver authority to the President under limited 
circumstances, and spells out the process for determining them under 
what limited conditions, the President may delay applicability of the 
law to a ``cooperating'' country. In issuing such a waiver, the 
President must report to Congress on that country's progress toward 
establishing a system of controls and concluding an international 
agreement. Criteria for determining whether a country is cooperating 
must be developed with public input.
  The bill requires no action by the Treasury Secretary or Customs 
Service that would contradict the United States' obligations to the 
World Trade

[[Page S6618]]

Organization, as it finds in a dispute proceeding. If another country 
successfully challenges the United States at the WTO, Congress intends 
for the United States to bring its actions into conformity with its WTO 
obligations.
  Both the President and the General Accounting Office are to report as 
to the system's effectiveness and on which countries are implementing 
it.
  The bill encourages the diamond industry to contribute to 
financially-strapped African countries that may have difficulty bearing 
the costs of setting up a system of controls, and authorizes $5 million 
of assistance from the United States to do the same.
  I ask my colleagues to join with us in cosponsoring the bill we 
introduce today and take a positive step in ending the bloody violence 
fueled by the sale of conflict diamonds.
                                 ______