[Congressional Record Volume 148, Number 122 (Tuesday, September 24, 2002)]
[House]
[Pages H6484-H6485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  AMENDING INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT TO PROVIDE FOR 
               APPLICABILITY TO THE EUROPEAN CENTRAL BANK

  Mr. LEACH. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3656) to amend the International Organizations Immunities Act to 
provide for the applicability of that Act to the European Central Bank.
  The Clerk read as follows:

                               H.R. 3656

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DESIGNATION OF THE EUROPEAN CENTRAL BANK UNDER THE 
                   INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT.

       The International Organizations Immunities Act (22 U.S.C. 
     288 et seq.) is amended by adding at the end the following 
     new section:
       ``Sec. 15. The provisions of this title may be extended to 
     the European Central Bank in the same manner, to the same 
     extent, and subject to the same conditions, as they may be 
     extended to a public international organization in which the 
     United States participates pursuant to any treaty or under 
     the authority of any Act of Congress authorizing such 
     participation or making an appropriation for such 
     participation.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Iowa (Mr. Leach) and the gentleman from American Samoa (Mr. 
Faleomavaega) each will control 20 minutes.
  The Chair recognizes the gentleman from Iowa (Mr. Leach).


                             General Leave

  Mr. LEACH. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this measure is a minor but symbolically important bill 
designed to underscore support for the establishment of the European 
Union by according its central bank legal rights within the United 
States that are accorded the central banks of individual Nation states.
  The European Central Bank is an independent legal entity owned by the 
central banks of the European Union member states, and was established 
in 1998 in accordance with the provisions of the treaty creating the 
European Union itself.

                              {time}  1445

  Significant portions of the ECB's foreign reserves are held at the 
Federal

[[Page H6485]]

Reserve Bank of New York as well as private banks in the United States.
  While the Foreign Sovereign Immunities Act extends immunity to 
foreign central banks, the ECB's immunities under this act are not 
assured because of the ECB's unique status resulting from its 
multinational ownership. Although the International Organizations Act 
extends to international organizations the same immunity enjoyed by 
foreign governments, for the purpose of this act, the reference to 
``international organizations'' only includes organizations to which 
the United States is a member; and of course, the United States is not 
a member of the EU.
  In January of this year, I introduced this legislation to protect the 
legal security of the ECB's foreign reserves by amending the IOIA by 
designating the ECB, all of which is a mouthful, as an international 
organization for the purposes of this act. A significant number of 
other organizations of which the United States is not a member have 
been designated in this way, including the Organization of African 
Unity, the European Space Agency, and the International Committee of 
the Red Cross.
  The extension of immunity provided by the IOIA to the ECB would 
assure the protection of their foreign reserves equivalent to that 
enjoyed by other foreign central banks. If we refuse the ECB request, 
we would, in effect, penalize monetary unions exercising sovereign 
Central Bank functions by, among other things, making the ECB 
vulnerable to private litigation. In this context, providing the ECB 
this status is entirely equitable and reasonable and amounts to the 
kind of mutual accommodation that we should be emphasizing at a time 
when so much friction is building between the United States and the 
European Union on a host of commercial and political issues.
  Indeed, in a historical context, the United States, in effect, 
created a monetary union when we replaced the original Articles of 
Confederation with a Constitution that restricted the capacity of 
individual States to tax each other. The European Union wisely matched 
this step 2 centuries later, and the newly created European Central 
Bank is an emanation of this daring initiative. It is incumbent on 
those on this side of the Atlantic to express our support and respect 
for this historical movement and for the institutions necessary to make 
it a cohesive success.
  The Committee on International Relations approved H.R. 3656 by a 
voice vote on March 20. The Federal Reserve, the Treasury Department, 
and the Department of State are in strong support of the legislation. I 
recommend an ``aye'' vote.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. Faleomavaega asked and was given permission to revise and extend 
his remarks.)
  Mr. FALEOMAVAEGA. Mr. Speaker I rise in strong support of this bill.
  This is a very straightforward measure to provide the European 
Central Bank the same immunity from judicial process that we routinely 
provide to foreign central banks under the Foreign Services Immunities 
Act. I want to commend the gentleman from Iowa (Mr. Leach), and also 
chairman of our Subcommittee on East Asia and the Pacific, for his 
authorship of this bill.
  The ECB was established in June of 1998 in accordance with the treaty 
establishing the European Union. The ECB is an independent legal entity 
owned by the central banks of the EU member states. Like any central 
banks, its role is to define and implement the monetary policy of the 
European Union and to maintain price stability. It also conducts 
foreign exchange operations and holds the official foreign reserves of 
the EU states.
  Given the nature of the ECB, it makes absolute sense to extend to it 
the same legal treatment we routinely provide to other foreign central 
banks.
  Unfortunately, since the ECB is a new type of central bank, it does 
not fit the definition of a foreign central bank under the Foreign 
Sovereign Immunities Act; and it is, therefore, not granted the 
immunities provided by that act.
  The ECB is likewise excluded from the judicial process immunities 
normally provided to the international organizations by the 
International Organizations Immunities Act because the IOIA only 
extends its immunities to international organizations of which the 
United States is a member.
  Therefore, H.R. 3656 amends the IOIA to include its provisions to the 
European Central Bank in the same manner, to the same extent, and 
subject to the same conditions as they may be extended to a public 
international organization in which the United States participates.
  This extension of the IOIA will simply provide the ECB with the same 
immunity we routinely grant to foreign central banks.
  This is a good bill, Mr. Speaker; and I urge my colleagues to support 
it. Again, I commend my good friend from Iowa for his sponsorship of 
the bill.
  Mr. Speaker, I have no further speakers; and I yield back the balance 
of my time.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  I would just conclude with my appreciation for the gentleman from 
American Samoa (Mr. Faleomavaega) and his thoughtful approach to all 
issues of the day.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Culberson). The question is on the 
motion offered by the gentleman from Iowa (Mr. Leach) that the House 
suspend the rules and pass the bill, H.R. 3656.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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