[Congressional Record Volume 153, Number 110 (Wednesday, July 11, 2007)]
[Extensions of Remarks]
[Pages E1487-E1488]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          FOREIGN INVESTMENT AND NATIONAL SECURITY ACT OF 2007

                                 ______
                                 

                               speech of

                           HON. PETER T. KING

                              of new york

                    in the house of representatives

                         Tuesday, July 10, 2007

  Mr. KING of New York. Mr. Speaker, I rise today in strong opposition 
to the Senate's revision of what was a solid, balanced bill, H.R. 556, 
the ``Foreign Investment and National Security Act of 2007.'' This bill 
fails to make a number of very much needed reforms to the Committee on 
Foreign Investment in the United States (``CFIUS''). I am disappointed 
that the legislation, passed by the Senate and considered today, makes 
changes to the bill originally passed by the House, that significantly 
weaken the legislation.
  As originally passed by the House, H.R. 556 ensured that the Director 
of National Intelligence (DNI) is given adequate time to conduct a 
thorough analysis of proposed transactions. If the DNI identified 
complex issues that could not be resolved within that initial 30-day 
review, the transaction would be sent to a 45-day investigation. These 
intelligence reviews were missing during the Dubai Ports debacle last 
year and are absolutely vital to our

[[Page E1488]]

homeland security. The Senate version short-shrifts these intelligence 
reviews and requires the DNI to complete his work within 20 days. It 
fails to consider more complicated cases that may require additional 
scrutiny.
  In addition, the bill passed by the House both last year and this 
year would have elevated the Secretary of Homeland Security to a 
position as Vice-Chair of CFIUS and required both the Departments of 
Treasury and Homeland Security to approve all CFIUS findings. This was 
a sensible approach that balanced foreign investment with national 
security. In the post-9/11 world, homeland security considerations must 
be our first consideration, not our last. Elevating the Secretary of 
Homeland Security to the Vice-Chair position would have ensured that 
while we encourage foreign investment, we would never again side-step 
the security of our homeland. The legislation we are considering today 
does not include this important provision.
  The Senate's revision would allow a simple majority to overrule the 
Secretary of Homeland Security or Defense with respect to whether or 
not a transaction should receive a more thorough vetting through a 
National Security Investigation. The House bill had required an 
investigation if any Committee member thought it necessary to protect 
our national security. Further, the mechanism for approving the 
Committee's findings is conspicuously absent from the Senate language, 
whereas the House allowed for any dissenting Committee member to push 
the transaction to the President for his consideration.
  Each of these provisions was included to prevent a future Dubai Ports 
scenario. Elevating the Secretary of Homeland Security as Vice-Chair 
would have ensured that the DHS's concerns were seriously addressed by 
the Department of Treasury. Giving the DNI adequate time to conduct a 
thorough review would have guaranteed that Members would get more than 
a shrug of the shoulders when asking pointed questions about Dubai's 
reported ties to the Taliban. Rollcall votes would have demanded 
accountability for what was an ill-informed decision.
  I cannot in good faith support this legislation because it fails to 
make the vital changes noted above to improve the current CFIUS 
process. We are missing an opportunity to enact reforms that will 
ensure that a debacle like the Dubai Ports World transaction does not 
happen again.
  I will therefore vote against H.R. 556.

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