[Congressional Record Volume 154, Number 96 (Wednesday, June 11, 2008)]
[House]
[Page H5303]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AMERICA NEEDS TO RECAPTURE ITS INDEPENDENCE FROM FOREIGN INTERESTS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
  Ms. KAPTUR. Mr. Speaker, today the New York Post reported that a 
foreign government in the form of the Abu Dhabi Investment Council 
plans to buy the Chrysler Building, a New York City landmark, for more 
than $800 million, continuing a trend of foreign government buyouts of 
American business, real estate and assets. This is the same sovereign 
wealth fund that bailed out Citigroup earlier in this year. Recall 
Citigroup, America's biggest bank and a key player in recycling 
international petrodollars and a holder of enormous debt from the 
subprime lending crisis.
  Abu Dhabi is jointly owned by the Abu Dhabi Investment Authority and 
the National Bank of Abu Dhabi. The former chairman is Sheik Khalifa 
bin Zayed al-Nahyan, who is pictured here on the poster with President 
Bush. The Sheik is the President of the United Arab Emirates and the 
ruler of Abu Dhabi. This is not just a foreign executive buying up an 
American icon building. This is the ruler of a foreign country.
  For those who are opposed to the American government owning private 
property, allowing foreign governments, and I underline that, to own 
America's priceless assets should be anathema. But the same people who 
advocate less U.S. Government involvement surely cannot support the 
meddling of undemocratic governments such as Abu Dhabi in buying up 
America's assets.
  U.S. Treasury Secretary Paulson went to Abu Dhabi earlier this month 
to put stardust on the state of the U.S. economy, assuring the Sheik 
that the United States encourages these types of foreign government 
investments and buyouts, even while the Secretary advocates a smaller 
role for the U.S. Government in our own country. Does this make any 
sense?
  Abu Dhabi's investments are particularly alarming, because in 
addition to the Authority and Council being state-run and perhaps the 
largest such funds in the world, they are among the least transparent 
sovereign wealth funds. According to the Sovereign Wealth Fund 
Institute, there is a ranking of the transparency of who really owns 
these funds and whose money is in there and what is that money doing.
  Abu Dhabi and the UAE are at the very bottom, at the very bottom. 
They are the least transparent of global sovereign wealth funds. The 
Authority in particular has a reputation for intense secrecy, without 
even an internal communications department. The fund is state-run and 
``does not answer to a wide public at home,'' said David L. Mack, a 
former United States Ambassador to the United Arab Emirates.
  How would this fund stand up to the regulations we have in place here 
in our own country? Would this fund be legal in the United States? How 
is this fund supportive of democratic principles? Abu Dhabi and the UAE 
are not democratic places. Without even asking these questions, this 
oil-hungry administration courts these investors personally.
  Of course, sovereign wealth funds are not just in the UAE. Kuwait, 
Qatar and Boston Properties purchased the GM Building earlier this 
week. Do you see the pattern? Nor are these funds limited to the oil-
rich Middle Eastern countries. In fact, one of the largest funds is 
Norway's. But that country, a democracy, has perhaps the most 
transparent and conventional investment strategy. They are at the top 
in terms of transparency and normal Western business and law practices.
  China, Saudi Arabia and many funds, such as those of the UAE, invest 
unconventionally, are very secret. They are not transparent, even when 
countries like Norway set an example of responsible investment.
  As our trade deficit swells even more, in April it deepened even 
more, to $60.9 billion in one month, America cannot afford to sell off 
any more of our country. We need to reduce our dependency on oil, 
balance our trade accounts and invest in our own country so that 
undemocratic and secretive foreign governments do not buy out our 
heritage. We need to recapture America's independence and stand on our 
own two feet again. It will require sacrifice and discipline and 
responsibility.
  Freedom's clock is really ticking for this generation. Are we going 
to hear it? Are we going to hear it?
  Mr. Speaker, I include the June 11, 2008, New York Post article 
entitled ``Chrysler Building on the Block'' for the Record.

                [From the New York Post, June 11, 2008]

                     Chrysler Building on the Block

                            (By Lois Weiss)

       The latest Big Apple trophy being coveted by oil-rich 
     sovereign wealth funds is the landmark Chrysler Building.
       Sources say the super-rich Abu Dhabi Investment Council is 
     negotiating an $800 million deal for a 75 percent stake in 
     the Art Deco treasure that has defined the Midtown skyline 
     since 1930.
       The Chrysler assets would be purchased from TMW--the German 
     arm of an Atlanta-based investment fund that's been eager to 
     cash out of its Chrysler stake.
       The deal follows last month's sale of the GM Building and 
     three other Macklowe/Equity Portfolio properties for $3.95 
     billion to a group of investors including the wealth funds of 
     Kuwait and Qatar and Boston Properties.
       As part of the Chrysler deal, sources said the Abu Dhabi 
     Investment Council would also get part of the skyscraper's 
     signature Trylons retail prize next door.
       Tishman Speyer Properties owns the remaining 25 percent 
     stake in the Chrysler Building and operates the landmark at 
     405 Lexington Ave., along with the Trylons and the newer next 
     door neighbor at 666 Third Ave.
       The Trylons space also involves retail portion, which 
     includes the Capital Grille steakhouse and a Citibank branch.
       The buildings sit on land owned by Cooper Union, which 
     leased it in a long-term arrangement to others and uses the 
     payments to support tuition for its students.
       Recently Tishman Speyer obtained a 150-year extension of 
     the ground lease.
       Sources say the deal would leave Tishman Speyer in charge 
     of the building, with the Abu Dhabi fund essentially acting 
     as a silent partner.
       Abu Dhabi has also partnered with Tishman Speyer in other 
     deals around the world, sources said. Since TMW and Tishman 
     Speyer sold 666 Fifth Ave. to Kushner Companies for $1.8 
     billion last year, the Atlanta group began informing the real 
     estate community that it was ready to cash out in the 
     landmark Chrysler Center, as well.
       None of the principals involved in the deal had any 
     comment.
       Boston Properties closed on its purchase of the GM Building 
     on Monday with investment partners Kuwait and Qatar, and will 
     complete the purchase of three other former Macklowe 
     properties over the next few months.
       Developer Harry Macklowe was forced to sell the assets 
     after taking a personal loan on the GM Building and other 
     family assets to raise nearly $7 billion to buy a city 
     package of former Equity Office buildings.




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