[Congressional Record Volume 152, Number 27 (Monday, March 6, 2006)]
[Senate]
[Pages S1793-S1796]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mr. Biden, Mr. DeMint, Ms. 
        Mikulski, Mr. Martinez, Mr. Nelson of Florida, Mr. Hagel, Mr. 
        Nelson of Nebraska, Mr. DeWine, Mr. Talent, Mr. Allen, Mr. 
        Frist, Mr. Burns, Mr. Thune, Mr. Reid, Mr. Salazar, Mr. Kerry, 
        Mr. Bunning, Mr. Lieberman, and Mrs. Boxer):
  S. 2370. A bill to promote the development of democratic institutions 
in areas under the administrative control of the Palestinian Authority, 
and for other purposes; to the Committee on Foreign Relations.
  Mr. McCONNELL. Mr. President, today, along with my friend, the senior 
Senator from Delaware, Mr. Biden, I send to the desk the Palestinian 
Anti-Terrorism Act of 2006 and ask that it be referred to the 
appropriate committee.
  Senator Biden and I are joined in our efforts today by Senators 
DeMint, Mikulski, Martinez, Senator Nelson of Florida, Hagel, Senator 
Nelson of Nebraska, DeWine, Talent, Allen, Frist, Burns and Thune, all 
of whom are original cosponsors of this legislation. This is a 
bipartisan bill, and I thank my colleagues on both sides of the aisle 
for their leadership on the important issue of how the United States 
addresses the challenges posed by the new Hamas-dominated government in 
the West Bank and Gaza.
  The Palestinian elections of January 25 produced a majority of Hamas 
supporters in the Palestinian parliament. Perhaps the Palestinians were 
frustrated with the corruption of the ruling Fatah Party, or perhaps 
they were tired of the slow pace of reforms. Either way, the 
Palestinian people cast their ballots for an organization that supports 
terrorism and rejects Israel's very right to exist. That is 
antithetical to our security interests in the Middle East, and it 
should be unacceptable to this Senate.
  In light of the recent election, Senator Biden and I are submitting 
this legislation for the Senate's consideration which we hope will send 
an unequivocal message to the Hamas leadership: renounce terror, 
recognize Israel and live up to the commitments made by the previous 
Palestinian government.
  In short, this legislation urges the Palestinian people to take 
another step toward joining the community of peaceful nations and a 
step away from the ranks of terrorism.
  Our bill would do the following: it would restrict assistance to the 
Palestinian Authority, PA, unless it is determined that no PA 
government ministry is controlled by terrorists, that the PA publicly 
acknowledges Israel's right to exist, that the PA has recommitted 
itself to all its prior agreements with Israel, that the PA has made 
progress toward dismantling terrorist infrastructure, and that the PA 
has instituted fiscal transparency. This bill would essentially deny 
visas to certain PA officials and restrict their travel to the United 
States. It also limits diplomatic interaction with Palestinian 
terrorist groups. Finally, this bill contains rigorous audit and 
oversight requirements to ensure compliance with its provisions.
  Let me also tell you what this bill does not do. It does not cut off 
assistance to the Palestinian people with respect to food, water, 
medicine, sanitation and other basic human needs. Thus, humanitarian 
assistance that does not go through the Palestinian government will 
continue. Moreover, funding for democracy programs will also be 
continued. Both Senator Biden and I appreciate the need not to punish 
the Palestinian people for actions its future government may take. Our 
concern is with the new regime taking power and in giving them the 
proper incentives to embrace peace and to abandon the pro-terror stance 
they have taken up until now.
  Democracy is about more than just elections, it is also about 
responsible, accountable governance. The Palestinian elections a few 
weeks back reflect this fact. International observers indicate that the 
Palestinian elections were essentially free and fair--which in and of 
itself is certainly a good thing.
  I strongly support democratic elections. That said, any right-minded 
person deplores the result of those elections.
  A key part of democratic governance is that elected officials are 
responsible for the actions they take. If Hamas

[[Page S1794]]

takes power and persists in sponsoring terror, rejecting Israel's right 
to exist and refusing to accept prior commitments made to Israel, then 
they should be held accountable for their actions and for the foreign 
aid investments in the West Bank and Gaza paid for by American 
taxpayers. The PA's budget is supported in large part by foreign 
assistance, and Hamas has been put on notice by the United States and 
many in the donor community about the steps it must take in order to 
receive assistance in the future.
  Along these same lines, I must say I am somewhat mystified at the 
recent diplomatic efforts undertaken by Russia. Russia broke from the 
Middle East Quartet and hosted representatives from Hamas in Moscow.
  In so doing, the Russians granted Hamas a measure of international 
legitimacy Hamas had hitherto lacked, while the Russians appear to have 
received no meaningful concessions in return. I am afraid I fail to see 
the benefit in Russia's actions other than emboldening other nations to 
follow a similar course of dealing with a terrorist organization. I 
suspect the Russians would be less than elated if Israel hosted Chechen 
separatists in Jerusalem.
  Foreign aid is not an entitlement. It is assistance from the American 
people to other nations, and it should be conducted in furtherance of 
U.S. interests and those of our allies. It is not to be given to 
organizations that actively work against those interests. Hamas, as it 
now stands, is just such an organization.
  The ball is squarely in Hamas' court. It can either work for the good 
of its citizens as an accountable democratic government should, or it 
can continue to act as a revolutionary group to the profound detriment 
of its citizens.
  Mr. LIEBERMAN. I thank Senator McConnell for the excellent statement. 
I have not had a chance to look at the legislation, but I am sure I 
will want to be added as an original cosponsor.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2370

       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 ``Palestinian Anti-Terrorism 
     Act of 2006''.

     SEC. 2. LIMITATION ON ASSISTANCE TO THE PALESTINIAN 
                   AUTHORITY.

       (a) Declaration of Policy.--It shall be the policy of the 
     United States--
       (1) to support a peaceful, two-state solution to end the 
     conflict between Israel and the Palestinians in accordance 
     with the Performance-Based Roadmap to a Permanent Two-State 
     Solution to the Israeli-Palestinian Conflict (commonly 
     referred to as the ``Roadmap'');
       (2) to oppose those organizations, individuals, and 
     countries that support terrorism and violently reject a two-
     state solution to end the Israeli-Palestinian conflict;
       (3) to promote the rule of law, democracy, the cessation of 
     terrorism and incitement, and good governance in institutions 
     and territories controlled by the Palestinian Authority; and
       (4) to urge members of the international community to avoid 
     contact with and refrain from financially supporting the 
     terrorist organization Hamas until it agrees to recognize 
     Israel, renounce violence, disarm, and accept prior 
     agreements, including the Roadmap.
       (b) Amendments.--Chapter 1 of part III of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2351 et seq.) is amended--
       (1) by redesignating the second section 620G (as added by 
     section 149 of Public Law 104-164 (110 Stat. 1436)) as 
     section 620J; and
       (2) by adding at the end the following new section:

     ``SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALESTINIAN 
                   AUTHORITY.

       ``(a) Limitation.--Assistance may be provided under this 
     Act to the Palestinian Authority only during a period for 
     which a certification described in subsection (b) is in 
     effect.
       ``(b) Certification.--A certification described in this 
     subsection is a certification transmitted by the President to 
     Congress that contains a determination of the President 
     that--
       ``(1) no ministry, agency, or instrumentality of the 
     Palestinian Authority is effectively controlled by Hamas, 
     unless Hamas has--
       ``(A) publicly acknowledged Israel's right to exist as a 
     Jewish state; and
       ``(B) committed itself and is adhering to all previous 
     agreements and understandings with the United States 
     Government, with the Government of Israel, and with the 
     international community, including agreements and 
     understandings pursuant to the Performance-Based Roadmap to a 
     Permanent Two-State Solution to the Israeli-Palestinian 
     Conflict (commonly referred to as the `Roadmap'); and
       ``(2) the Palestinian Authority has made demonstrable 
     progress toward--
       ``(A) completing the process of purging from its security 
     services individuals with ties to terrorism;
       ``(B) dismantling all terrorist infrastructure within its 
     jurisdiction, confiscating unauthorized weapons, arresting 
     and bringing terrorists to justice, destroying unauthorized 
     arms factories, thwarting and preempting terrorist attacks, 
     and fully cooperating with Israel's security services;
       ``(C) halting all anti-American and anti-Israel incitement 
     in Palestinian Authority-controlled electronic and print 
     media and in schools, mosques, and other institutions it 
     controls, and replacing educational materials, including 
     textbooks, with materials that promote peace, tolerance, and 
     coexistence with Israel;
       ``(D) ensuring democracy, the rule of law, and an 
     independent judiciary, and adopting other reforms such as 
     ensuring transparent and accountable governance; and
       ``(E) ensuring the financial transparency and 
     accountability of all government ministries and operations.
       ``(c) Recertifications.--Not later than 90 days after the 
     date on which the President transmits to Congress an initial 
     certification under subsection (b), and every six months 
     thereafter--
       ``(1) the President shall transmit to Congress a 
     recertification that the conditions described in subsection 
     (b) are continuing to be met; or
       ``(2) if the President is unable to make such a 
     recertification, the President shall transmit to Congress a 
     report that contains the reasons therefor.
       ``(d) Congressional Notification.--Assistance made 
     available under this Act to the Palestinian Authority may not 
     be provided until 15 days after the date on which the 
     President has provided notice thereof to the Committee on 
     International Relations and the Committee on Appropriations 
     of the House of Representatives and to the Committee on 
     Foreign Relations and the Committee on Appropriations of the 
     Senate in accordance with the procedures applicable to 
     reprogramming notifications under section 634A(a) of this 
     Act.
       ``(e) National Security Waiver.--
       ``(1) Waiver.--The President may waive the limitation in 
     subsection (a) with respect to the administrative and 
     personal security costs of the Office of President of the 
     Palestinian Authority and for activities of the President of 
     the Palestinian Authority to promote democracy and the rule 
     of law if the President certifies and reports to the 
     appropriate congressional committees that--
       ``(A) it is in the national security interests of the 
     United States to provide such assistance; and
       ``(B) the President of the Palestinian Authority and the 
     President's party are not affiliated with Hamas or any other 
     foreign terrorist organization.
       ``(2) Consultation required.--The President shall consult 
     with the appropriate congressional committees prior to making 
     a certification under paragraph (1).
       ``(f) Definitions.--In this section:
       ``(1) Appropriate congressional committees defined.--The 
     term `appropriate congressional committees' means--
       ``(A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.
       ``(2) Foreign terrorist organization.--The term `foreign 
     terrorist organization' means an organization designated as a 
     foreign terrorist organization by the Secretary of State in 
     accordance with section 219(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1189(a)).
       ``(3) Palestinian authority.--The term `Palestinian 
     Authority' means the interim Palestinian administrative 
     organization that governs part of the West Bank and all of 
     the Gaza Strip (or any successor Palestinian governing 
     entity), including the Palestinian Legislative Council.''.
       (c) Previously Obligated Funds.--The provisions of section 
     620K of the Foreign Assistance Act of 1961, as added by 
     subsection (b), shall be applicable to the unexpended 
     balances of funds obligated prior to the date of the 
     enactment of this Act.

     SEC. 3. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND GAZA.

       (a) Amendment.--Chapter 1 of part III of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as amended 
     by section 2(b)(2), is further amended by adding at the end 
     the following new section:

     ``SEC. 620L. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND 
                   GAZA.

       ``(a) Limitation.--Assistance may be provided under this 
     Act to nongovernmental organizations for the West Bank and 
     Gaza only during a period for which a certification described 
     in section 620K(b) is in effect with respect to the 
     Palestinian Authority.
       ``(b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following:
       ``(1) Assistance to meet basic human needs.--Assistance to 
     meet food, water, medicine, or sanitation needs, or other 
     assistance to meet basic human needs.

[[Page S1795]]

       ``(2) Assistance to promote democracy.--Assistance to 
     promote democracy, human rights, freedom of the press, non-
     violence, reconciliation, and peaceful co-existence, provided 
     that such assistance does not directly benefit Hamas or other 
     foreign terrorist organizations.
       ``(3) Other types of assistance.--Any other type of 
     assistance if the President--
       ``(A) determines that the provision of such assistance will 
     further the national security interests of the United States; 
     and
       ``(B) not less than 45 days prior to the obligation of 
     amounts for the provision of such assistance--
       ``(i) consults with the appropriate congressional 
     committees regarding the specific programs, projects, and 
     activities to be carried out using such assistance; and
       ``(ii) submits to the appropriate congressional committees 
     a written memorandum that contains the determination of the 
     President under subparagraph (A).
       ``(4) Definition.--In this subsection, the term 
     `appropriate congressional committees' means--
       ``(A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.
       ``(c) Marking Requirement.--Assistance provided under this 
     Act to nongovernmental organizations for the West Bank and 
     Gaza shall be marked as assistance from the American people 
     or the United States Government unless the Administrator of 
     the United States Agency for International Development 
     determines that such marking will endanger the lives or 
     safety of persons delivering such assistance or would have a 
     significant adverse effect on the implementation of that 
     assistance.
       ``(d) Congressional Notification.--Assistance made 
     available under this Act to nongovernmental organizations for 
     the West Bank and Gaza may not be provided until 15 days 
     after the date on which the President has provided notice 
     thereof to the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives 
     and to the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate in accordance with the 
     procedures applicable to reprogramming notifications under 
     section 634A(a) of this Act.''.
       (b) Oversight and Related Requirements.--
       (1) Oversight.--For each of the fiscal years 2007 and 2008, 
     the Secretary of State shall certify to the appropriate 
     congressional committees not later than 30 days prior to the 
     initial obligation of amounts for assistance to 
     nongovernmental organizations for the West Bank or Gaza under 
     the Foreign Assistance Act of 1961 that procedures have been 
     established to ensure that the Comptroller General of the 
     United States will have access to appropriate United States 
     financial information in order to review the use of such 
     assistance.
       (2) Vetting.--Prior to any obligation of amounts for each 
     of the fiscal years 2007 and 2008 for assistance to 
     nongovernmental organizations for the West Bank or Gaza under 
     the Foreign Assistance Act of 1961 or any other provision of 
     law, the Secretary of State shall take all appropriate steps 
     to ensure that such assistance is not provided to or through 
     any individual or entity that the Secretary knows, or has 
     reason to believe, advocates, plans, sponsors, engages in, or 
     has engaged in, terrorist activity. The Secretary shall, as 
     appropriate, establish procedures specifying the steps to be 
     taken in carrying out this paragraph and shall terminate 
     assistance to any individual or entity that the Secretary has 
     determined advocates, plans, sponsors, or engages in 
     terrorist activity.
       (3) Prohibition.--No amounts made available for fiscal year 
     2007 or 2008 for assistance to nongovernmental organizations 
     for the West Bank or Gaza under the Foreign Assistance Act of 
     1961 may be made available for the purpose of recognizing or 
     otherwise honoring individuals who commit, or have committed, 
     acts of terrorism.
       (4) Audits.--
       (A) In general.--The Administrator of the United States 
     Agency for International Development shall ensure that 
     Federal or non-Federal audits of all contractors and 
     grantees, and significant subcontractors and subgrantees, 
     that receive amounts for assistance to nongovernmental 
     organizations for the West Bank or Gaza under the Foreign 
     Assistance Act of 1961 are conducted for each of the fiscal 
     years 2007 and 2008 to ensure, among other things, compliance 
     with this subsection.
       (B) Audits by inspector general of usaid.--Of the amounts 
     available for each of the fiscal years 2007 and 2008 for 
     assistance to nongovernmental organizations for the West Bank 
     or Gaza under the Foreign Assistance Act of 1961, up to 
     $1,000,000 for each such fiscal year may be used by the 
     Office of the Inspector General of the United States Agency 
     for International Development for audits, inspections, and 
     other activities in furtherance of the requirements of 
     subparagraph (A). Such amounts are in addition to amounts 
     otherwise available for such purposes.

     SEC. 4. DESIGNATION OF TERRITORY CONTROLLED BY THE 
                   PALESTINIAN AUTHORITY AS TERRORIST SANCTUARY.

       It is the sense of Congress that, during any period for 
     which a certification described in section 620K(b) of the 
     Foreign Assistance Act of 1961 (as added by section 2(b)(2) 
     of this Act) is not in effect with respect to the Palestinian 
     Authority, the territory controlled by the Palestinian 
     Authority should be deemed to be in use as a sanctuary for 
     terrorists or terrorist organizations for purposes of section 
     6(j)(5) of the Export Administration Act of 1979 (50 U.S.C. 
     App. 2405(j)(5)) and section 140 of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
     2656f).

     SEC. 5. DENIAL OF VISAS FOR OFFICIALS OF THE PALESTINIAN 
                   AUTHORITY.

       A visa should not be issued to any alien who is an official 
     of, affiliated with, or serving as a representative of the 
     Palestinian Authority, other than the President of the 
     Palestinian Authority and his or her personal 
     representatives, provided that the President and his or her 
     personal representatives are not affiliated with Hamas or any 
     other foreign terrorist organization, during any period for 
     which a certification described in section 620K(b) of the 
     Foreign Assistance Act of 1961 (as added by section 2(b)(2) 
     of this Act) is not in effect with respect to the Palestinian 
     Authority.

     SEC. 6. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES 
                   OF THE PALESTINIAN AUTHORITY AND THE PALESTINE 
                   LIBERATION ORGANIZATION STATIONED AT THE UNITED 
                   NATIONS IN NEW YORK CITY.

       (a) In General.--Notwithstanding any other provision of 
     law, and except as provided in subsection (b), the President 
     should restrict the travel of officials and representatives 
     of the Palestinian Authority and of the Palestine Liberation 
     Organization, who are stationed at the United Nations in New 
     York City to a 25-mile radius of the United Nations 
     headquarters building during any period for which a 
     certification described in section 620K(b) of the Foreign 
     Assistance Act of 1961 (as added by section 2(b)(2) of this 
     Act) is not in effect with respect to the Palestinian 
     Authority.
       (b) Exception.--The travel restrictions described in 
     subsection (a) should not apply to the President of the 
     Palestinian Authority and his or her personal 
     representatives, provided that the President and his or her 
     personal representatives are not affiliated with Hamas or any 
     other foreign terrorist organization.

     SEC. 7. PROHIBITION ON PALESTINIAN AUTHORITY REPRESENTATION 
                   IN THE UNITED STATES.

       (a) Prohibition.--Notwithstanding any other provision of 
     law, it shall be unlawful to establish or maintain an office, 
     headquarters, premises, or other facilities or establishments 
     within the jurisdiction of the United States at the behest or 
     direction of, or with funds provided by, the Palestinian 
     Authority during any period for which a certification 
     described in section 620K(b) of the Foreign Assistance Act of 
     1961 (as added by section 2(b)(2) of this Act) is not in 
     effect with respect to the Palestinian Authority.
       (b) Enforcement.--
       (1) Attorney general.--The Attorney General shall take the 
     necessary steps and institute the necessary legal action to 
     effectuate the policies and provisions of subsection (a).
       (2) Relief.--Any district court of the United States for a 
     district in which a violation of subsection (a) occurs shall 
     have authority, upon petition of relief by the Attorney 
     General, to grant injunctive and such other equitable relief 
     as it shall deem necessary to enforce the provisions of 
     subsection (a).
       (c) Waiver.--Subsection (a) shall not apply if the 
     President determines and certifies to the appropriate 
     congressional committees that the establishment or 
     maintenance of an office, headquarters, premises, or other 
     facilities is vital to the national security interests of the 
     United States.

     SEC. 8. INTERNATIONAL FINANCIAL INSTITUTIONS.

       (a) Requirement.--The President should direct the United 
     States Executive Director at each international financial 
     institution to use the voice, vote, and influence of the 
     United States to prohibit assistance to the Palestinian 
     Authority (other than assistance described under subsection 
     (b)) during any period for which a certification described in 
     section 620K(b) of the Foreign Assistance of 1961 (as added 
     by section 2(b)(2) of this Act) is not in effect with respect 
     to the Palestinian Authority.
       (b) Exceptions.--The prohibition on assistance described in 
     subsection (a) should not apply with respect to the following 
     types of assistance:
       (1) Assistance to meet food, water, medicine, or sanitation 
     needs, or other assistance to meet basic human needs.
       (2) Assistance to promote democracy, human rights, freedom 
     of the press, non-violence, reconciliation, and peaceful co-
     existence, provided that such assistance does not directly 
     benefit Hamas or other foreign terrorist organizations.
       (c) Definition.--In this section, the term ``international 
     financial institution'' has the meaning given the term in 
     section 1701(c)(2) of the International Financial 
     Institutions Act (22 U.S.C. 262r(c)(2)).

     SEC. 9. DIPLOMATIC CONTACTS WITH PALESTINIAN TERROR 
                   ORGANIZATIONS.

       No funds authorized or available to the Department of State 
     may be used for or by any officer or employee of the United 
     States Government to negotiate with members or official 
     representatives of Hamas, Palestinian Islamic Jihad, the 
     Popular Front for

[[Page S1796]]

     the Liberation of Palestine, al-Aqsa Martyrs Brigade, or any 
     other Palestinian terrorist organization (except in emergency 
     or humanitarian situations), unless and until such 
     organization--
       (1) recognizes Israel's right to exist;
       (2) renounces the use of terrorism;
       (3) dismantles the infrastructure in areas within its 
     jurisdiction necessary to carry out terrorist acts, including 
     the disarming of militias and the elimination of all 
     instruments of terror; and
       (4) recognizes and accepts all previous agreements and 
     understandings between the State of Israel and the 
     Palestinian Authority.

     SEC. 10. REPORTING REQUIREMENT.

       Not later than 90 days after the date of the enactment of 
     this Act, and annually thereafter, the Secretary of State 
     shall submit to the appropriate congressional committees a 
     report that--
       (1) describes the steps that have been taken by the United 
     States Government to ensure that other countries and 
     international organizations, including multilateral 
     development banks, do not provide direct assistance to the 
     Palestinian Authority for any period for which a 
     certification described in section 620K(b) of the Foreign 
     Assistance Act of 1961 (as added by section 2(b)(2) of this 
     Act) is not in effect with respect to the Palestinian 
     Authority; and
       (2) identifies any countries and international 
     organizations, including multilateral development banks, that 
     are providing direct assistance to the Palestinian Authority 
     during such a period, and describes the nature and amount of 
     such assistance.

     SEC. 11. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       (B) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.
       (2) Palestinian authority.--The term ``Palestinian 
     Authority'' has the meaning given the term in section 
     620K(e)(2) of the Foreign Assistance Act of 1961 (as added by 
     section 2(b)(2) of this Act).

  Mr. BIDEN. Mr. President, I am pleased to join the Senator from 
Kentucky as the lead cosponsor of the Palestinian Anti-Terrorism Act of 
2006.
  This bill sends a clear message: The United States will not provide a 
single penny to a Hamas-led government unless it renounces violence, 
recognizes Israel, and accepts past agreements between Israel and the 
Palestinian Authority. These requirements are clear, and they reflect 
the will not just of the United States, but of the international 
community, including the so-called Quartet of the United States, the 
European Union, Russia and the United Nations.
  Simply put, Hamas must choose between bullets and ballots, between 
destructive terror and constructive governance. It cannot have it both 
ways.
  The bill affirms support for a two-state solution to end the Israeli-
Palestinian conflict, an objective that Hamas rejects. The bill also 
requires the administration to report on steps it is taking to urge 
other nations to refrain from providing financial assistance to Hamas. 
In addition, it places restrictions on diplomatic contacts and 
movements by representatives of Hamas.
  At the same time, the bill makes clear that we want to continue to 
support the basic needs of the Palestinian people. Assistance to the 
Palestinians for things such as food, water, medicine, and sanitation 
through non-governmental organizations will be permitted under this * * 
*
  Instead of moving urgently, we dithered. Several months into last 
year, the President made a smart move by appointing Jim Wolfensohn the 
Quartet's special envoy to the Middle East, but he failed to strongly 
support his efforts. It wasn't until November that Secretary Rice got 
directly involved by brokering a breakthrough agreement on Gaza. That 
was welcome, but it was too little, too late.
  I don't want to dwell on the past, but I think it's important that we 
try to learn from it.
  It's also well known that Israel had deep misgivings about proceeding 
with these elections. Their views should have been considered more 
closely--after all, the consequences affect them directly.
  Overall, I think this Administration has made the mistake of 
confusing democracy with elections. Elections are necessary but not 
sufficient--they do not a democracy make. Democracy is about building 
durable institutions--including political parties, transparent and 
effective government, civil society and a strong private sector.
  We see what happens in the Middle East when you have elections with 
weak institutions--including in Egypt, Muslim Brotherhood, Lebanon, 
Hezbollah, Iraq, SCIRI, and now the Palestinian Authority. All of us 
support the spread of democracy, but we should also support the hard 
work and investments it takes to build it.
  Regarding the Palestinian vote, what should we do now? Obviously, 
Hamas's victory casts a pall on the future of the peace process.
  First, Israel cannot be expected to negotiate with a party that calls 
for its destruction, engages in terrorism and maintains an armed 
militia.
  Second, we should build international support for the position of the 
Quartet--no assistance to a Hamas-led government until it agrees to 
recognize Israel, renounce violence, and accept past agreements.
  Third, we need to press the Arab Gulf states not to rush in and 
financially support a Hamas-led government. That would take the 
pressure off Hamas, and it would reveal the hypocrisy of the Arab 
governments who say they support peace, but were unwilling to be more 
generous with Abbas's government.
  Hamas is now ``the dog that caught the car.'' It must respond to 
international demands and, even more importantly, it must be responsive 
to the Palestinian public which wants reform, but doesn't want 
isolation, poverty, and radicalism.
  The legislation I have introduced with my colleague, the senior 
Senator from Kentucky, is our attempt to clarify the choices for Hamas, 
and to make clear our rejection of a group that is committed to terror.
                                 ______