[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[House]
[Pages H2895-H2901]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CLEAN DIAMOND TRADE ACT
Mr. CRANE. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1584) to implement effective measures to stop trade in conflict
diamonds, and for other purposes, as amended.
The Clerk read as follows:
H.R. 1584
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Clean Diamond Trade Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Funds derived from the sale of rough diamonds are being
used by rebels and state actors to finance military
activities, overthrow legitimate governments, subvert
international efforts to promote peace and stability, and
commit horrifying atrocities against unarmed civilians.
During the past decade, more than 6,500,000 people from
Sierra Leone, Angola, and the Democratic Republic of the
Congo have been driven from their homes by wars waged in
large part for control of diamond mining areas. A million of
these are refugees eking out a miserable existence in
neighboring countries, and tens of thousands have fled to the
United States. Approximately 3,700,000 people have died
during these wars.
(2) The countries caught in this fighting are home to
nearly 70,000,000 people whose societies have been torn apart
not only by fighting but also by terrible human rights
violations.
(3) Human rights and humanitarian advocates, the diamond
trade as represented by the World Diamond Council, and the
United States Government have been working to block the trade
in conflict diamonds. Their efforts have helped to build a
consensus that action is urgently needed to end the trade in
conflict diamonds.
(4) The United Nations Security Council has acted at
various times under chapter VII of the Charter of the United
Nations to address threats to international peace and
security posed by conflicts linked to diamonds. Through these
actions, it has prohibited all states from exporting weapons
to certain countries affected by such conflicts. It has
further required all states to prohibit the direct and
indirect import of rough diamonds from Sierra Leone unless
the diamonds are controlled under specified certificate of
origin regimes and to prohibit absolutely the direct and
indirect import of rough diamonds from Liberia.
(5) In response, the United States implemented sanctions
restricting the importation of rough diamonds from Sierra
Leone to those diamonds accompanied by specified certificates
of origin and fully prohibiting the importation of rough
diamonds from Liberia. The United States is now taking
further action against trade in conflict diamonds.
(6) Without effective action to eliminate trade in conflict
diamonds, the trade in legitimate diamonds faces the threat
of a consumer backlash that could damage the economies of
countries not involved in the trade in conflict diamonds and
penalize members of the legitimate trade and the people they
employ. To prevent that, South Africa and more than 30 other
countries are involved in working, through the ``Kimberley
Process'', toward devising a solution to this problem. As the
consumer of a majority of the world's supply of diamonds, the
United States has an obligation to help sever the link
between diamonds and conflict and press for implementation of
an effective solution.
(7) Failure to curtail the trade in conflict diamonds or to
differentiate between the trade in conflict diamonds and the
trade in legitimate diamonds could have a severe negative
impact on the legitimate diamond trade in countries such as
Botswana, Namibia, South Africa, and Tanzania.
(8) Initiatives of the United States seek to resolve the
regional conflicts in sub-Saharan Africa which facilitate the
trade in conflict diamonds.
(9) The Interlaken Declaration on the Kimberley Process
Certification Scheme for Rough Diamonds of November 5, 2002,
states that Participants will ensure that measures taken to
implement the Kimberley Process Certification Scheme for
Rough Diamonds
[[Page H2896]]
will be consistent with international trade rules.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Ways and Means and the Committee on International
Relations of the House of Representatives, and the Committee
on Finance and the Committee on Foreign Relations of the
Senate.
(2) Controlled through the kimberley process certification
scheme.--An importation or exportation of rough diamonds is
``controlled through the Kimberley Process Certification
Scheme'' if it is an importation from the territory of a
Participant or exportation to the territory of a Participant
of rough diamonds that is--
(A) carried out in accordance with the Kimberley Process
Certification Scheme, as set forth in regulations promulgated
by the President; or
(B) controlled under a system determined by the President
to meet substantially the standards, practices, and
procedures of the Kimberley Process Certification Scheme.
(3) Exporting authority.--The term ``exporting authority''
means 1 or more entities designated by a Participant from
whose territory a shipment of rough diamonds is being
exported as having the authority to validate the Kimberley
Process Certificate.
(4) Importing authority.--The term ``importing authority''
means 1 or more entities designated by a Participant into
whose territory a shipment of rough diamonds is imported as
having the authority to enforce the laws and regulations of
the Participant regulating imports, including the
verification of the Kimberley Process Certificate
accompanying the shipment.
(5) Kimberley process certificate.--The term ``Kimberley
Process Certificate'' means a forgery resistant document of a
Participant that demonstrates that an importation or
exportation of rough diamonds has been controlled through the
Kimberley Process Certification Scheme and contains the
minimum elements set forth in Annex I to the Kimberley
Process Certification Scheme.
(6) Kimberley process certification scheme.--The term
``Kimberley Process Certification Scheme' means those
standards, practices, and procedures of the international
certification scheme for rough diamonds presented in the
document entitled ``Kimberley Process Certification Scheme''
referred to in the Interlaken Declaration on the Kimberley
Process Certification Scheme for Rough Diamonds of November
5, 2002.
(7) Participant.--The term ``Participant'' means a state,
customs territory, or regional economic integration
organization identified by the Secretary of State.
(8) Person.--The term ``person'' means an individual or
entity.
(9) Rough diamond.--The term ``rough diamond'' means any
diamond that is unworked or simply sawn, cleaved, or bruted
and classifiable under subheading 7102.10, 7102.21, or
7102.31 of the Harmonized Tariff Schedule of the United
States.
(10) United states.--The term ``United States'', when used
in the geographic sense, means the several States, the
District of Columbia, and any commonwealth, territory, or
possession of the United States.
(11) United states person.--The term ``United States
person'' means--
(A) any United States citizen or any alien admitted for
permanent residence into the United States;
(B) any entity organized under the laws of the United
States or any jurisdiction within the United States
(including its foreign branches); and
(C) any person in the United States.--
SEC. 4. MEASURES FOR THE IMPORTATION AND EXPORTATION OF ROUGH
DIAMONDS.
(a) Prohibition.--The President shall prohibit the
importation into, or exportation from, the United States of
any rough diamond, from whatever source, that has not been
controlled through the Kimberley Process Certification
Scheme.
(b) Waiver.--The President may waive the requirements set
forth in subsection (a) with respect to a particular country
for periods of not more than 1 year each, if, with respect to
each such waiver--
(1) the President determines and reports to the appropriate
congressional committees that such country is taking
effective steps to implement the Kimberley Process
Certification Scheme; or
(2) the President determines that the waiver is in the
national interests of the United States, and reports such
determination to the appropriate congressional committees,
together with the reasons therefor.
SEC. 5. REGULATORY AND OTHER AUTHORITY.
(a) In General.--The President is authorized to and shall
as necessary issue such proclamations, regulations, licenses,
and orders, and conduct such investigations, as may be
necessary to carry out this Act.
(b) Recordkeeping.--Any United States person seeking to
export from or import into the United States any rough
diamonds shall keep a full record of, in the form of reports
or otherwise, complete information relating to any act or
transaction to which any prohibition imposed under section
4(a) applies. The President may require such person to
furnish such information under oath, including the production
of books of account, records, contracts, letters, memoranda,
or other papers, in the custody or control of such person.
(c) Oversight.--The President shall require the appropriate
Government agency to conduct annual reviews of the standards,
practices, and procedures of any entity in the United States
that issues Kimberley Process Certificates for the
exportation from the United States of rough diamonds to
determine whether such standards, practices, and procedures
are in accordance with the Kimberley Process Certification
Scheme. The President shall transmit to the appropriate
congressional committees a report on each annual review under
this subsection.
SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.
(a) In the United States.--For purposes of this Act--
(1) the importing authority shall be the United States
Bureau of Customs and Border Protection or, in the case of a
territory or possession of the United States with its own
customs administration, analogous officials; and
(2) the exporting authority shall be the Bureau of the
Census.
(b) Of Other Countries.--The President shall publish in the
Federal Register a list of all Participants, and all
exporting authorities and importing authorities of
Participants. The Secretary shall update the list as
necessary.
SEC. 7. STATEMENT OF POLICY.
The Congress supports the policy that the President shall
take appropriate steps to promote and facilitate the adoption
by the international community of the Kimberley Process
Certification Scheme implemented under this Act.
SEC. 8. ENFORCEMENT.
(a) In General.--In addition to the enforcement provisions
set forth in subsection (b)--
(1) a civil penalty of not to exceed $10,000 may be imposed
on any person who violates, or attempts to violate, any
license, order, or regulation issued under this Act; and
(2) whoever willfully violates, or willfully attempts to
violate, any license, order, or regulation issued under this
Act shall, upon conviction, be fined not more than $50,000,
or, if a natural person, may be imprisoned for not more than
10 years, or both; and any officer, director, or agent of any
corporation who willfully participates in such violation may
be punished by a like fine, imprisonment, or both.
(b) Import Violations.--Those customs laws of the United
States, both civil and criminal, including those laws
relating to seizure and forfeiture, that apply to articles
imported in violation of such laws shall apply with respect
to rough diamonds imported in violation of this Act.
(c) Authority to Enforce.--The United States Bureau of
Customs and Border Protection and the United States Bureau of
Immigration and Customs Enforcement are authorized, as
appropriate, to enforce the provisions of subsection (a) and
to enforce the laws and regulations governing exports of
rough diamonds, including with respect to the validation of
the Kimberley Process Certificate by the exporting authority.
SEC. 9. TECHNICAL ASSISTANCE.
The President may direct the appropriate agencies of the
United States Government to make available technical
assistance to countries seeking to implement the Kimberley
Process Certification Scheme.
SEC. 10. SENSE OF CONGRESS.
(a) Ongoing Process.--It is the sense of the Congress that
the Kimberley Process Certification Scheme, officially
launched on January 1, 2003, is an ongoing process. The
President should work with Participants to strengthen the
Kimberley Process Certification Scheme through the adoption
of measures for the sharing of statistics on the production
of and trade in rough diamonds, and for monitoring the
effectiveness of the Kimberley Process Certification Scheme
in stemming trade in diamonds the importation or exportation
of which is not controlled through the Kimberley Process
Certification Scheme.
(b) Statistics and Reporting.--It is the sense of the
Congress that under Annex III to the Kimberley Process
Certification Scheme, Participants recognized that reliable
and comparable data on the international trade in rough
diamonds are an essential tool for the effective
implementation of the Kimberley Process Certification Scheme.
Therefore, the executive branch should continue to--
(1) keep and publish statistics on imports and exports of
rough diamonds under subheadings 7102.10.00, 7102.21, and
7102.31.00 of the Harmonized Tariff Schedule of the United
States;
(2) make these statistics available for analysis by
interested parties and by Participants; and
(3) take a leadership role in negotiating a standardized
methodology among Participants for reporting statistics on
imports and exports of rough diamonds.
SEC. 11. KIMBERLEY PROCESS IMPLEMENTATION COORDINATING
COMMITTEE.
The President shall establish a Kimberley Process
Implementation Coordinating Committee to coordinate the
implementation of this Act. The Committee should be composed
of the following individuals or their designees:
(1) The Secretary of the Treasury and the Secretary of
State, to serve as co-chairpersons.
(2) The Secretary of Commerce.
(3) The United States Trade Representative.
[[Page H2897]]
(4) The Secretary of Homeland Security.
(5) A representative of any other agency the President
deems appropriate.
SEC. 12. REPORTS.
(a) Annual Reports.--Not later than 1 year after the date
of the enactment of this Act and every 12 months thereafter
for such period as this Act is in effect, the President shall
transmit to the Congress a report--
(1) describing actions taken by countries that have
exported rough diamonds to the United States during the
preceding 12-month period to control the exportation of the
diamonds through the Kimberley Process Certification Scheme;
(2) describing whether there is statistical information or
other evidence that would indicate efforts to circumvent the
Kimberley Process Certification Scheme, including cutting
rough diamonds for the purpose of circumventing the Kimberley
Process Certification Scheme;
(3) identifying each country that, during the preceding 12-
month period, exported rough diamonds to the United States
and was exporting rough diamonds not controlled through the
Kimberley Process Certification Scheme, if the failure to do
so has significantly increased the likelihood that those
diamonds not so controlled are being imported into the United
States; and
(4) identifying any problems or obstacles encountered in
the implementation of this Act or the Kimberly Process
Certification Scheme.
(b) Semiannual Reports.--For each country identified in
subsection (a)(3), the President, during such period as this
Act is in effect, shall, every 6 months after the initial
report in which the country was identified, transmit to the
Congress a report that explains what actions have been taken
by the United States or such country since the previous
report to ensure that diamonds the exportation of which was
not controlled through the Kimberley Process Certification
Scheme are not being imported from that country into the
United States. The requirement to issue a semiannual report
with respect to a country under this subsection shall remain
in effect until such time as the country is controlling the
importation and exportation of rough diamonds through the
Kimberley Process Certification Scheme.
SEC. 13. GAO REPORT.
Not later than 24 months after the effective date of this
Act, the Comptroller General of the United States shall
transmit a report to the Congress on the effectiveness of the
provisions of this Act in preventing the importation or
exportation of rough diamonds that is prohibited under
section 4. The Comptroller General shall include in the
report any recommendations on any modifications to this Act
that may be necessary.
SEC. 14. DELEGATION OF AUTHORITIES.
The President may delegate the duties and authorities under
this Act to such officers, officials, departments, or
agencies of the United States Government as the President
deems appropriate.
SEC. 15. EFFECTIVE DATE.
This Act shall take effect on the date on which the
President certifies to the Congress that--
(1) an applicable waiver that has been granted by the World
Trade Organization is in effect; or
(2) an applicable decision in a resolution adopted by the
United Nations Security Council pursuant to Chapter VII of
the Charter of the United Nations is in effect.
This Act shall thereafter remain in effect during those
periods in which, as certified by the President to the
Congress, an applicable waiver or decision referred to in
paragraph (1) or (2) is in effect.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Crane) and the gentleman from Michigan (Mr. Levin) each
will control 20 minutes.
The Chair recognizes the gentleman from Illinois (Mr. Crane).
Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Royce).
Mr. ROYCE. Mr. Speaker, I would like to begin by commending the
gentleman from New York (Mr. Houghton), the vice-chairman of the
Subcommittee on Africa, for working long and hard on this legislation.
For several years now, the House has been focused on the problem of
conflict diamonds around the world. Three years ago, the Subcommittee
on Africa that I chair held a hearing on these conflict diamonds; and
we have had several hearings on Sierra Leone where, again, these
diamonds have fueled a conflict, frankly, a conflict that has
brutalized many children in that country, a conflict that has led to
the forced amputations of the arms and legs of little girls and little
boys in Sierra Leone.
Concerted international action, including a U.N. curb on the diamond
trade in Sierra Leone and neighboring Liberia, has helped give Sierra
Leone a chance for peace. The legislation that we are considering today
builds on that success.
We should note that the problem of natural resources fueling
conflicts in Africa is not limited to diamonds. Over the last several
years, an estimated 2.5 million people have died in the eastern Congo
due to a conflict being fueled by an illegal natural resource rush. The
U.N. has documented what it calls ``elite networks,'' government
officials from Rwanda, Uganda, Zimbabwe, and the Congo acting in
collaboration with international criminals and war lords. What are they
doing? They are gorging on diamonds, but also other minerals and on
farm produce and land and tax revenue, and these characters thrive in
an environment of conflict. They thrive on death, and we need to combat
all of this exploitation.
Today, though, we are focused on a significant part of the problem,
and that is diamonds; and this legislation is an important tool to
fight this chaos that is going on in eastern Congo and elsewhere.
Ending the trade in conflict diamonds is all the more important given
reports of terrorists using rough diamonds to hide their funds and to
transfer their funds.
Again, I would like to commend the gentleman from New York and the
other Members; and to name a few, I would like to commend the gentleman
from Virginia (Mr. Wolf); our former Member, the gentleman from Ohio
(Mr. Hall); the gentleman from New York (Mr. Rangel); and others who
have worked on this legislation, which has been several years in the
making. It promises to curb the trade in conflict diamonds while not
harming the legitimate diamond trade that so many Africans depend on
for their livelihood.
This is an important step forward and deserves strong support.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume,
and I ask unanimous consent to yield the balance of the time, after I
am done, to the gentleman from California (Mr. Lantos), the ranking
member of the Committee on International Relations, and also that he be
allowed to allocate that time as he desires.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. LEVIN. Mr. Speaker, I rise in support of this legislation. H.R.
1584, the Clean Diamond Trade Act, implements our obligations, the U.S.
obligations under the Kimberley Process Certification Scheme, an
international system designed to ensure that rough diamonds entering
the U.S. are legally mined and traded.
Once in place, this system will be instrumental in ensuring that
conflict diamonds, gems that have fueled decades-long wars and
atrocities in Africa, are not imported into the United States.
This legislation represents the culmination of a 3-year effort led in
substantial part by the gentleman from Virginia (Mr. Wolf) and former
Member, the gentleman from Ohio (Mr. Hall), and the gentleman from New
York (Mr. Houghton), who is here today, and I salute his efforts, and
the gentleman from New York (Mr. Rangel).
Each of these Members has helped to keep the spotlight focused on the
terrible toll trade in conflict diamonds has had on the people of sub-
Saharan Africa. They have worked diligently and responsibly to address
the concerns of the administration and of the gentleman from California
(Mr. Thomas). They have also worked to address concerns about the
impact of rough diamond regulations on legitimate diamond trade in
countries such as Botswana, Namibia, South Africa, and Tanzania.
Let me just say briefly a word about the circumstances under which
this bill is being considered. There is an urgent time factor. As a
result, this legislation was not considered in the Committee on Ways
and Means or the Committee on International Relations; but this was not
basically an effort to bypass the committee process which, in my view,
is essential to the development of sound legislation. Rather, we
agreed, on a bipartisan basis, because of time constraints, to proceed
in this manner, in part in large measure because of the implications of
continued nonaction by the U.S.
Specifically, as I understand it, the entire international
certification system was not going to go into effect because we here
had not implemented our obligations. So I am glad we were able to work
across the aisle, across committees and with the NGO community,
[[Page H2898]]
the diamond industry and the diamond mining country representatives to
put this bill together.
I believe it is a beneficial work product, one which I urge my
colleagues to pass; and also I think it is an example of how to proceed
on a bipartisan basis. It makes sense here, and it makes sense on other
important issues.
Specific provisions I am pleased to see included are inclusion of
recordkeeping requirements for importers and exporters of rough
diamonds, mandatory executive branch oversight of any entity that
issues Kimberley process certificates and provisions to coordinate
activities of the various agencies and departments that will implement
this bill and U.S. Kimberley process obligations. With these additions,
this bill sends an important signal to the international community that
we here are engaged; that we here take this issue seriously; and that
we here expect other nations to take the necessary steps to help
eradicate this plight.
Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from New
York (Mr. Houghton).
Mr. HOUGHTON. Mr. Speaker, I thank the gentleman from Illinois (Mr.
Crane), the gentleman from Michigan (Mr. Levin), the gentleman from
California (Mr. Royce), the gentleman from New York (Mr. Rangel). I
want to thank particularly the gentleman from Virginia (Mr. Wolf) here
who has been a leading light in this whole proposition and also Tony
Hall, who is the ambassador to the Food and Agricultural Organization
in Rome whose spirit just pervades this whole Chamber on this issue.
A lot of this has already been talked about. I will not go over it in
detail, but let me just say a few things. This really is a follow-up to
last year's bill. I will not give my colleagues the number, they know
it, but this 1584 creates a system to monitor the blood diamonds coming
from Africa. It is a very, very important bill for a variety of
reasons, not the least of which the humanitarian aspect; and what it
does, it attacks the problem of the trade in African diamonds by having
the President implement the so-called Kimberley process. My colleagues
know what that is. It is important. It is a vehicle for making this
bill possible.
What the bill mechanically does is three things. First of all, it
bans noncompliant rough diamonds. It severely punishes the violators of
this ban, and it also helps other countries to set up similar systems.
Also, this bill will require various reports by the administration
and a 24-month study by the GAO to report on the effectiveness of the
system. It urges the President to continue negotiations to strengthen
the system and protects the legitimate diamond trade and also remains
consistent with our international trade obligations.
Like so many other things we do around here, all great ideas
ultimately degenerate into work; and the people who did the great work,
David Kavanaugh, Mike Walsh, Viji Rangaswami of the Subcommittee on
Trade, Frank Record of the Committee on International Relations, Jay
Bruns of the State Department, and many friends of the Campaign to
Eliminate Conflict Diamonds, world vision, Amnesty International,
Oxfam, and Catholic Relief Services. All have added their weight here
to this very important piece of legislation.
I urge my associates and my colleagues to pass it.
{time} 1545
Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume,
and I rise in strong support of this resolution. First, Mr. Speaker, I
would like to commend my good friend and colleague, the gentleman from
New York (Mr. Houghton), who has done so much to promote human rights
and human dignity and fairness and justice in Africa, and indeed
throughout the globe. I also want to thank all of my colleagues on both
sides of the aisle for making a contribution to this legislation.
Mr. Speaker, our legislation requires the United States to
participate in the Kimberly Process certification scheme. This process
is designed to prevent international trade in conflict diamonds while
protecting legitimate trade.
One cannot speak of conflict diamonds, Mr. Speaker, without recalling
in vivid detail the young children from Sierra Leone who came before
this Congress as tiny witnesses to the horror of so-called resource
wars in Africa. Little boys and little girls with arms and legs missing
sat quietly before the Committee on International Relations as we
listened to the gruesome details of the civil war in Sierra Leone.
The civil war was not a just war. This was a war of shameless greed
and shameless corruption, an uncivilized war that knew no mercy, that
knew no limit to cruelty. This war, and the wars in Angola and the so-
called Democratic Republic of Congo, were fueled in large part by the
illicit trade in so-called conflict diamonds. While some call these
diamonds a curse on these countries, it is the evil men who would
slaughter parents and maim children who are the ultimate curse on these
countries and on humanity as a whole.
Mr. Speaker, the wars in Sierra Leone and Angola have ended, and in
Sierra Leone many of the wrongdoers are being brought to justice.
Sanctions against conflict diamonds played a significant part in
helping to stop these wars. While the immediate crisis has passed, the
effects will linger far into the future. I trust we will be willing to
step up to the plate when we are called upon to help.
Mr. Speaker, H.R. 1584 will make sure that the United States and our
jewelry industry are not complicit in any further exploitation of
diamonds to fuel civil conflicts. Our legislation prohibits the
importation to or exportation from the United States of any rough
diamonds, from whatever source, that are not controlled through the
Kimberly Process. I urge all of my colleagues to support H.R. 1584.
Mr. Speaker, I reserve the balance of my time.
Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from
Virginia (Mr. Wolf).
Mr. WOLF. Mr. Speaker, I thank the gentleman for yielding me this
time, and I want to say thanks to the chairman of the Committee on Ways
and Means, the gentleman from California (Mr. Thomas), the chairman of
the Subcommittee on Trade, the gentleman from Illinois (Mr. Crane), and
their staff, Angela Ellard and Dave Kavanaugh, with the help of Viji
Rangaswami from the minority staff for their efforts on the bill. In
addition, I want to thank the gentleman from New York (Mr. Houghton)
and his staff, Bob Van Wicklin for pulling this bill together and
staying very faithful during this difficult time; also, Frank Record
and Joan Condon from the Committee on International Relations for their
important contributions.
The passage of this bill is really a tribute to a former Congressman,
Tony Hall, who brought this issue to the body and asked me to go with
him several years ago to Sierra Leone. So, Tony, this is really because
of your work. And who says one person cannot make a difference?
Mr. Speaker, millions of people have died in Africa because of the
bloodshed surrounding conflict diamonds. The bill we consider today may
finally bring hope and justice to the millions of Africans who have
suffered. In addition, major media organizations, the Washington Post
and the BBC, have reported direct connections between blood diamonds
and the al Qaeda terrorist network. Addressing the issue of conflict
diamonds is not only essential for the millions dying and suffering in
Africa but also for America's national security.
This version of the bill before the House is a good one, and I am
confident the President has the tools to ban trade of rough diamonds
that fund terrorists and other groups that commit despicable actions
against innocent people. The al Qaeda, Hezbollah, and many other groups
have been funded through this diamond trade.
This bill is an important improvement over other drafts we have seen
this year. For example, the bill language has established the Kimberly
Process Coordination Committee. The committee would coordinate the
implementation of the act. Both the Secretaries of State and Treasury
would be chairs of the committee. With the assistance of the
Secretaries of Commerce, Homeland Security, and the U.S. Trade Rep,
there would be greater pressure to be sure the process is implemented
as the Congress intends.
[[Page H2899]]
Further, a former Ambassador to Sierra Leone, Ambassador Melrose, has
told us that the ability to maintain statistical information is vital
to make a determination as to whether or not the Kimberly Process is
being successful or circumvented. This will take care of that.
The bill prevents illicit conflict diamonds from entering the United
States. This is a tribute not only to former Congressman Hall, but also
as a sign that we care deeply about the young men and women and
children who had their arms cut off and all those activities that took
place. And I just want to thank all the Members and the staff that have
been involved in bringing this bill here.
Mr. LANTOS. Mr. Speaker, I am very pleased to yield 3 minutes to the
gentlewoman from California (Ms. Lee), my good friend and neighbor, who
has fought so hard for human rights in Africa and elsewhere.
Ms. LEE. Mr. Speaker, I want to thank the gentleman for his
leadership in advocating human rights throughout the world and also for
making sure that this is a bipartisan bill.
I rise today in support of the Clean Diamonds Trade Act. Finally,
Congress, the international community, and the various grassroots
organizations' efforts to sever the link between diamonds and war has
come to the floor for a vote. So I want to thank the gentleman from New
York (Mr. Houghton), the gentleman from Illinois (Mr. Hyde), and again
our ranking member, the gentleman from California (Mr. Lantos), as well
as the chair of the Subcommittee on Africa, the gentleman from
California (Mr. Royce) and our ranking member, the gentleman from New
Jersey (Mr. Payne) for their continued commitment to this issue. I
encourage all Members to support this bill.
Some have argued that regulating the global diamond industry should
not be Congress' responsibility, but I argue that promoting peace over
conflict, supporting our international communities' efforts to clean up
the global diamond system, and introducing ways to support the people
in Africa, who have not been able to benefit from their own resources,
should be our goal. This legislation transforms diamonds into a
commodity from which all communities can benefit, not just a chosen
few.
H.R. 1584, the Clean Diamonds Trade Act, provides a long list of
overdue regulation on conflict diamonds. The bill requires United
States compliance with the Kimberly Process certification. It imposes
costly, very costly, civil penalties and jail time, which is very
important, jail time for those who willfully violate the act, and
incorporates oversight from our Customs Service and other key agencies
which oversee international trade.
I believe each component is essential to ending the sale of conflict
diamonds. And, further, I hope that we will find a way to incorporate
more Africans into the diamond industry itself to promote more
entrepreneurship and sustainable development.
In closing, I would like to thank several organizations, including
Amnesty International, World Vision, Physicians for Human Rights, Oxfam
America, and World Relief for their continued support of conflict
diamond reforms. Over 65 percent of these conflict diamonds, Mr.
Speaker, were sold to people in our own country. So I want to thank our
constituents for pushing for reform instead of accepting this unjust
trade.
I urge all our colleagues to support this bipartisan bill and the
passage of H.R. 1584, and I want to thank once again the gentleman from
California (Mr. Lantos) again and the gentleman from New York (Mr.
Houghton).
Mr. CRANE. Mr. Speaker, I yield 5 minutes to the gentleman from New
Jersey (Mr. Smith).
Mr. SMITH of New Jersey. Mr. Speaker, I thank the distinguished
chairman for yielding me this time and for his great work on behalf of
this legislation, and to the gentleman from New York (Mr. Houghton) for
his superb leadership in crafting this bill.
I rise in strong support, Mr. Speaker, of the Clean Diamond Trade
Act, a long overdue measure that will restore the U.S. in a leadership
position in the fight against the trade in conflict diamonds. For too
long, the international community has looked the other way as rebel
groups have trafficked in the sale of lethal military weapons using the
profits from the sale of these diamonds to finance efforts to overthrow
legitimate governments.
This bill will put in place the required laws and regulations
designed to monitor and control the import and export of the trade in
conflict diamonds so they can no longer be used to support instability
and armed conflict throughout much of Africa and other parts of the
world.
By all accounts, they are aptly named conflict diamonds. During the
past decade, more than 6 million people from Sierra Leone, Angola, and
the Democratic Republic of the Congo have been driven from their homes
by wars waged in large part for control for diamond mining areas.
I have met on several occasions, Mr. Speaker, with David Crane, the
Sierra Leone Special War Crimes Prosecutor, who told me about ghastly
war crimes committed in the name of diamond profits. Not only has the
illegitimate trade of diamonds led to systematic and gross human rights
violations and civil unrest, so too it has hurt the trade in legitimate
diamonds, which makes a critical contribution to the economies of many
developing countries.
Numerous resolutions, Mr. Speaker, of the United Nations Security
Council under Chapter VII of the U.N. Charter, including resolutions
1173, 1295, 1306, and 1343, as well as a United Nations General
Assembly resolution in 2000 have laid the groundwork for devising an
international regime to stop the flow of these conflict diamonds.
The first meeting, as I think Members know, to discuss this took
place in Kimberly, South Africa, in May of 2000 at the initiative of
the African producing countries. Many technical and working group
meetings took place subsequent to that throughout Africa and Europe,
culminating in the November 2002 meeting in Interlaken, Switzerland,
finalizing the so-called Kimberly Process.
This historic meeting committed all 48 participants, including the
United States, to the rapid implementation of its diamond certification
scheme for rough diamonds consistent with international trade rules.
Fully consistent with the work of the diamond industry, including the
World Diamond Council, numerous civil society representatives and key
NGOs, the voluntary self-regulating initiatives from many producing
importing countries have now been melded through the Kimberly Process
into a global system of mutually recognized certificates for legitimate
diamonds.
Our own Nation's extensive participation in this effort, under the
auspices of the State Department's special negotiator for conflict
diamonds, is reflected in the measure before us today. The bill
implements our obligations to prohibit the import or export of rough
diamonds not controlled by the Kimberly Process.
The bill specifies that the exporting authority under the bill will
be the Bureau of the Census, and their role will be to issue the
required regulations and guidelines to ensure that any proposed exports
of rough diamonds be made through the automated export system. Any
efforts to fully evaluate and enforce this system validating Kimberly
Process Certificates would be undertaken by the United States Bureau of
Customs and Border Protection and the Bureau of Immigration and Customs
Enforcement.
I would also point out to my colleagues that the legislation gives
the State Department a lead role, together with the Treasury, in
implementing the legislation. In this regard, the existing special
negotiator for conflict diamonds in the Bureau for Economic and
Business Affairs should continue to play a key role in this effort.
{time} 1600
Mr. Speaker, it is the expectation of the Committee on International
Relations that it will be fully consulted by the Department to the
extent it decides to take any action to modify this position in any
way. It has been brought to my attention that a number of
nongovernmental organizations who are taking an active role in
monitoring the implementation of the Kimberly Process have expressed
concerns that several countries, including the Republic of the Congo,
the Democratic Republic of the Congo, Zimbabwe and the
[[Page H2900]]
Central African Republic, have been admitted as participants in the
certification scheme despite evidence of continued illegal trade in
rough diamonds.
I would ask the Department to examine this evidence and take any and
all appropriate actions necessary to mitigate and stop this illegal
activity. I urge support for the bill.
Mr. LANTOS. Mr. Speaker, I yield 3 minutes to the gentleman from New
York (Mr. Rangel).
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. Mr. Speaker, I thank the ranking member of the Committee
on International Relations, and all of the Members of the House that
worked on this legislation, including the gentleman from New York (Mr.
Houghton) and our past Member, Tony Hall, for the interest and support
that he has given. I would like to thank the nongovernment
organizations for the work that they have done to make the Kimberly
Process available to us, and the certificates, so we can move forward
with better trade with those who produce raw diamonds.
Like other Members, I was motivated to get involved in this issue
after seeing the horrific evidence of violence wrought by rebel groups
financing their civil war activities and human rights abuses through
the illegal diamond trade. Addressing this issue, it seemed to me, was
part and parcel of our responsibility to assist the nations of sub-
Saharan African countries by bringing peace to the continent.
In addition, I understood if we did not curtail trade in illegal
diamonds, our failure to act would have a chilling effect on the
legitimate diamond trade for countries such as Botswana where
legitimately mined diamonds provide a significant source of her income.
The stain of conflict diamonds threatens to have a tremendous adverse
impact on her.
I would like to say a few words about the process by which this
legislation is being considered. Normally, I have been a strong
advocate that all legislation go through the committee process and be
fully debated; but this particular bill did not go through the
Committee on Ways and Means or the Committee on International
Relations, but I do believe in view of the time pressure to pass this
very important legislation that this should be an exception to the rule
and there should not be any controversy. I am pleased to be working
with the gentleman from California and on the other side of the aisle
with the gentleman from Illinois (Mr. Crane) to give this support in
connection with the urgency that it deserves. I ask all of my
colleagues to support this bill.
Mr. CRANE. Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentleman from New
York (Mr. Meeks).
Mr. MEEKS of New York. Mr. Speaker, I thank the ranking member, the
gentleman from California (Mr. Lantos), and the gentleman from Illinois
(Chairman Hyde), and of course from the Committee on Ways and Means,
the gentleman from California (Mr. Thomas) and the gentleman from New
York (Mr. Rangel).
As a member of the Subcommittee on Africa, we spend a great amount of
time on exploring and understanding conflicts in Africa and how
devastating the symptoms of the civil war and low-intensity conflicts
can be in terms of loss of life and loss of development opportunities.
However, we often do not spend sufficient time on the underlying
causes of conflicts of the wars, including wars started and perpetuated
over trying to control who gets to benefit from the free trade of
Africa's vast natural resources like diamonds. Today's bill makes a
positive step in the right direction to bring an end to those who would
profit from conflict and war and violence at the expense of
socioeconomic development. It makes a step in the right direction to
wage a war on the international trade nexus of money, diamonds and
weapons which help fuel conflicts in Africa.
I want to thank Members on both sides of the aisle for supporting
this initiative. It represents a compromise between doing more to help
stop the trade of illegal conflict diamonds while also protecting the
trade of diamonds from countries which produce and sell diamonds in
ways which support economic development.
Mr. Speaker, H.R. 1584 is a measure we can all support. We must not
lose sight of the fact that for centuries Africa's vast resources have
been used in legal and illegal ways and provide little benefits to
African societies.
If we want to change these realities, if we want the trade of
Africa's diamonds, oil, and gold to support economic growth and
development, we must devote as equal a level of attention and financial
resources as we spend on trade liberalization and privatization efforts
to assist African societies in building the necessary economic,
regulatory, supervisory, and enforcement institutions and laws that
every society must have to have a transparent, competitive and free
market economy, an economy where both the rights and obligations of the
private sector and consumers are protected, an economy which provides
opportunities and freedom for all. This Congress can start today with
H.R. 1584.
Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentleman from
Arkansas (Mr. Synder).
Mr. SNYDER. Mr. Speaker, almost 20 years ago I lived and worked in
Sierra Leone for 6 months. I was a doctor at a Catholic mission
hospital. At that time, Sierra Leone was poor and unhealthy with a life
expectancy of 42 years. It was inefficient with a low level of
corruption, but it was not dangerous. And then along came these
conflict diamonds, blood diamonds, which stimulated greed and provided
purchasing power for the weapons and drugs that were used in this very,
very brutal war.
As the international community responded to the war in Sierra Leone,
a lot of Americans may ask themselves, What does that have to do with
me? What is wrong with having a cheaper supply of diamonds? Sierra
Leone is so far away.
Mr. Speaker, drying up the cash that supports terrorism is a very
important part of the war on terrorism; but we can freeze all of the
bank accounts we want and stop the cash transfers, but somebody can
take a sock full of illegal diamonds, put it in their pocket, walk onto
a plane, and they have an ability to move wealth all over the world, to
bribe and buy weaponry and buy explosives. This bill is an important
part of our national security, not just in Africa.
Rats have a way of finding a hole in the house, and one of the things
that I like about this bill today is that it has the vigilance that
legislation needs. It has reporting requirements so we can monitor the
success and failures in this bill, and I hope that we will respond in a
rapid manner should we see we have some gaps. I encourage a strong vote
of support for the Clean Diamond Trade Act.
Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentlewoman from
California (Ms. Watson), a former distinguished ambassador, and a
distinguished member of the Committee on Ways and Means.
Ms. WATSON. Mr. Speaker, I rise in strong support of H.R. 1584, the
Clean Diamond Trade Act. Over the past decade, many brutal civil wars
throughout Africa have been financed with the sale of diamonds. These
so-called conflict diamonds have been especially useful to the brutal
Sierra Leone rebel organization, the Revolutionary United Front, which
has been trading these diamonds to fund its war against the government
of Sierra Leone.
This bill implements the Kimberly Process Certification Scheme, which
prohibits importing rough diamonds into the United States unless they
have been certified as not originating from areas where the diamond
trade finances or generates violent conflict. In essence, this bill
prohibits the importation of any rough diamond that has not been
controlled through the Kimberly Process.
Mr. Speaker, I plan to introduce a bill in the next few days that
also supports and endorses the Kimberly Process, but also encourages
the global diamond industry, as represented by the World Diamond
Council, to step up to the plate and establish a fund to support a
variety of programs that will aid in the reconstruction and
rehabilitation of African nations traumatized by civil wars financed
through the diamond trade.
I believe the diamond industry, which has reaped the financial
rewards
[[Page H2901]]
of trade with nations engulfed in civil war, must also take
responsibility in assisting these nations to heal the wounds of war and
creating a just and lasting peace in those countries. While there have
been a number of groups within the gemstone industry that have been
responsive, others have not yet chosen to acknowledge the humanitarian
emergency that the trade in conflict diamonds has produced.
Mr. LANTOS. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, before I speak on the bill, I want to congratulate
Members on both sides of the aisle, especially the gentleman from New
York (Mr. Houghton) for the gentleman's work on behalf of getting this
bill introduced. I also thank the gentleman from Virginia (Mr. Wolf)
and the gentleman from California (Mr. Lantos) and the gentleman from
New York (Mr. Rangel) on the other side of the aisle.
This is a very important bill that has nothing to do with partisan
politics whatsoever. When it was introduced in 2001, it passed this
body by a vote of 408 to six. I think the six Members that voted
against it at the time are probably reconsidering it because there is
no basis for anyone to find any objections to it.
I hope that the bill we have before us this evening, based on H.R.
2722 from the 107th Congress, which passed by that 408 to six vote, and
since that time the administration has worked with the international
community to finalize the structure of the Kimberly Process
Certification Scheme which controls the trade in rough diamonds, that
it is to all countries, and it prevents trade in conflict diamonds and
the bill reflects the new structure. I thank the administration for its
hard work and dedication to the effort on this important issue, too.
The funds derived from the sale of rough diamonds have been used by
rebels and state actors to finance military activities and to overthrow
legitimate governments, subvert international efforts to promote peace
and stability, and commit horrifying atrocities against unarmed
citizens.
During the past decade, more than 6.5 million people from Sierra
Leone, Angola, and the Democratic Republic of the Congo have been
driven from their homes by wars waged in large part for control of
diamond mining areas. The United Nations Security Council has issued
resolutions urging nations to take actions against conflict diamonds.
In response, the United States has issued various Presidential
executive orders to ban direct imports from nations subject to the
United Nations resolution. The United States has also led international
negotiations to reach an agreement that set standards for diamond
extracting and trading nations to meet.
These international negotiations, the Kimberly Process it is called,
came after the name of the city in which they were initiated. It
creates a system of checks and balances for rough diamonds throughout
the world. This system tracks through governmentally verifiable
certificates that trade in diamonds between countries and individuals.
Since its January 1 implementation date, over 40 countries are
participating in this system. The United States requires this system to
ensure that its leadership position in this critical matter continues.
Finally, this bill is consistent with our WTO obligations.
Mr. Speaker, I strongly urge my colleagues to support this bipartisan
bill and to pass this important legislation.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R.
1584--To implement effective measures to stop trade in conflict
diamonds, and for other purposes. The Clean Diamonds Act prohibits the
import of diamonds into the United States unless the exporting country
is implementing a system of controls on the export or import of rough
diamonds that meets specified requirements, consistent with United
Nations General Assembly Resolution 55/56 adopted on December 1, 2000,
or a future international agreement which implements such controls and
to which the United States is a signatory. Additionally, this
legislation sets forth both civil and criminal penalties for violations
of the bill's requirements. It prohibits the Overseas Private
Investment Corporation and the Export-Import Bank from engaging in
certain transactions in connection with projects or exports to
countries violating the requirements of this Act. If further expresses
the sense of Congress that the President should take steps to negotiate
an international agreement to eliminate the trade in diamonds used to
support conflict in the country or regions in which such diamonds are
mined.
Mr. Speaker, to many people, diamonds symbolize love, happiness, or
wealth. But for others, they mean conflict, misery and poverty. In
African countries such as Angola, Democratic Republic of Congo, and
Sierra Leone, the profits from unregulated diamond trade allows rebel
forces to obtain weapons and fund armed conflicts. Also, this practice
spills over into neighboring countries that can be used as trading and
transit grounds for illicit diamonds, and once the diamonds are brought
to market, their origin is difficult to trace and once polished, they
can no longer be identified. As a result of the complex nature of this
process, tens of thousands of civilians have been killed, raped,
mutilated or abducted.
In an amputee camp in the capital of Freetown, one will find a three-
year-old girl whose right arm was chopped off with a machete. One might
also not be shocked to find her or himself opposite a 14-year-old girl,
pregnant by rape, who will never be able to hold her child because the
rebels who raped her also hacked off both of her arms. Other amputees
describe the horror of being forced to select at random a piece of
paper out of a bag, and losing the body part written on the scrap--arm,
leg, ear, or nose.
The enactment of this legislation will not only eliminate the degree
to which human lives are negatively impacted by the brutal practices of
these rebel forces, but also it would do much to increase consumer
confidence with respect to the purchase of diamonds by allowing
American jewelers and jewelry store to tell their consumers the
diamonds in their store are clean diamonds. Currently, no jeweler knows
where their diamonds come from, and they cannot assure their customers
their diamond purchases are not unwittingly subsidizing a cruel and
abusive rebel force in one of these nations. Nonetheless, once the
``Clean Diamonds Act'' is passed, jewelers will at last have a ``clean
stream'' of diamonds to sell. They can be confident the United States
government is evaluating every diamond supplying country and excluding
those that fail to conform to internal standards.
In a statement by Ambassador Juan Larrain, Chairman of the Monitoring
Mechanism on sanctions against UNITA, he stated ``It has been said that
war is the price of peace. . . [These nations] have already paid too
much. Let them live a better life.''
Mr. Speaker, I urge my colleagues to join in this momentous effort to
end the devastation that is occurring as a result of these conflicts.
Now is the time to act on behalf of the many lives being sacrificed and
those that are calling for our help and our immediate attention to
their pain and suffering. for this reason, we must remain vigilant and
not allow ourselves to ignore the blood of the blameless.
However, it is imperative that we not penalize African countries like
Ghana, that have been diligent in certifying their diamonds and
standing up against the rebel, terrorist, and violent use of such
diamonds. This is an important economic resource of such countries and
the legislature must acknowledge that.
Mr. CRANE. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Linder). The question is on the motion
offered by the gentleman from Illinois (Mr. Crane) that the House
suspend the rules and pass the bill, H.R. 1584, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. LANTOS. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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