[Congressional Record Volume 155, Number 183 (Tuesday, December 8, 2009)]
[House]
[Pages H13563-H13567]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             ENCOURAGING HUNGARY TO RESPECT THE RULE OF LAW

  Mr. ENGEL. Madam Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 915) encouraging the Republic of Hungary to 
respect the rule of law, treat foreign investors fairly, and promote a 
free and independent press.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 915

       Whereas, on October 23, 1956, some 100,000 Hungarian 
     citizens began a nation-wide revolt against the Communist 
     government of Hungary and its domination by the Soviet Union;
       Whereas the Hungarian people fought bravely for freedom, 
     democracy, and human rights;
       Whereas, on March 12, 1999, the Government of Hungary, 
     reflecting the will of the Hungarian people, formally became 
     a member of NATO and on May 1, 2005, Hungary became a full 
     member of the European Union;
       Whereas the United States has invested over $9,000,000,000 
     in Hungary since 1989 and the United States is the fourth-
     largest contributor and largest non-European contributor to 
     foreign investment in Hungary according to the U.S. 
     Department of Commerce;
       Whereas the Hungarian Investment and Trade Development 
     Agency reports that foreign direct investment has been 
     crucial in boosting Hungary's economic performance and 
     remains the driving force behind Hungary's economic success;
       Whereas in 1997, the Hungarian National Radio and 
     Television Board (ORTT) awarded licenses for two national 
     radio stations, which are set to expire on November 19, 2009;
       Whereas the two licenses are the only ones that allow for 
     nationwide coverage by commercial, rather than state, radio-
     broadcast services in Hungary;
       Whereas one of these licenses was awarded to a United 
     States company and the other to a European company, each for 
     a total of 12 years;
       Whereas the Financial Times reported on November 6, 2009, 
     that before the bids for renewal of their national licenses 
     were due, these companies were approached by individuals 
     claiming to represent the Socialist and Fidesz Parties in 
     Hungary offering to extend their licenses if the parties 
     received 50 percent of the companies' equity;
       Whereas the Financial Times also reported on November 6, 
     2009, that both stations refused this alleged extortion 
     attempt and the ORTT delegates from Fidesz and the ruling 
     Socialist party voted to award the licenses to two 
     politically-connected local bidders instead;
       Whereas the Wall Street Journal reported on November 10, 
     2009, that Hungary's Prime Minister and the Chair of the ORTT 
     have publicly decried the process by which these licenses 
     were awarded;
       Whereas the Economist reported on November 7, 2009, that 
     the Chair of the ORTT resigned in protest and refused to sign 
     the politically-motivated contracts;
       Whereas United States investors are an important part of 
     the Hungarian economy and deserve equitable treatment in 
     accordance with United States and Hungarian laws;
       Whereas unfair treatment of foreign companies will deter 
     investment and hinder economic growth in Hungary; and
       Whereas respect for the rule of law and a free and 
     independent press will spur investor confidence in Hungary: 
     Now, therefore, be it
       Resolved, That the House of Representatives--
       (1) condemns the recent action by the Hungarian National 
     Radio and Television Board that awarded the national 
     community radio licenses;
       (2) encourages the Republic of Hungary to respect the rule 
     of law and treat foreign investors fairly; and
       (3) encourages the Republic of Hungary to maintain its 
     commitment to a free and independent press.

  Mr. KUCINICH. Madam Speaker, I seek to claim time in opposition.
  The SPEAKER pro tempore. Is the gentlewoman from Florida opposed to 
the resolution?
  Ms. ROS-LEHTINEN. Madam Speaker, I do not oppose this resolution.
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Engel) and the gentleman from Ohio (Mr. Kucinich) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. ENGEL. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days to revise and extend their remarks and 
include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. ENGEL. Madam Speaker, I rise in strong support of this 
resolution, and I yield myself as much time as I may consume.
  Madam Speaker, I thank my good friend from Indiana (Mr. Donnelly) for 
introducing this important resolution.
  Let me just say in 1989 Hungary joined its Central and Eastern 
European neighbors in throwing off the mantle of communist rule. By 
taking the brave and unprecedented decision in that year to open its 
borders to Austria and to allow East Germans to travel freely to the 
West, Hungary played a decisive role in bringing about the end of the 
Cold War. In the 20 years since, Hungary has become a member of NATO, 
the European Union and a strong partner of the United States.
  Hungary is working side-by-side with the U.S. in Afghanistan, where 
it leads the provincial reconstruction team in Baghlan Province, and it 
has been a partner in conflicts in Iraq and in the Balkans. We greatly 
appreciate Hungary's staunch support in these and many areas.
  However, we have become concerned about recent reports of possible 
unfair treatment of foreign investors in Hungary and possible efforts 
to inject politically motivated demands into the commercial process. In 
particular, we are concerned by the actions of the Hungarian National 
Radio and Television Board, ORTT, in deciding not to renew the national 
radio licenses for two foreign companies, one of which is American-
owned, and to award them instead to two local bidders.
  In 1997, the ORTT awarded to the foreign companies the only two 
licenses to provide commercial, rather than state-owned, nationwide 
broadcast services. Those licenses expired on November 19 of this year.
  According to widespread media reporting, the two foreign companies 
have alleged that before their renewal bids were due, they were 
approached by representatives of Hungary's two leading political 
parties, offering to ensure their licenses would be extended if they 
agreed to the representatives' demands for a percentage of the 
company's equity and a say in editorial content.
  The two foreign companies refused, and the ORTT awarded the licenses 
to the two local bidders instead, who had submitted tenders that many 
outside experts have said are not commercially viable.
  The day following the award, the chairman of the ORTT resigned in 
protest, claiming that the two local bidders' contracts were flawed and 
economically unsound. Numerous commentators have indicated that on the 
face of it, the ORTT's decision clearly appears to have been 
politically motivated and have ignored the economic feasibility of the 
two local bidders' tenders.
  Madam Speaker, American companies have invested over $9 billion in 
Hungary since 1989. Hungary's economy, as with every other country, has 
been severely affected by the global economic downturn. We support U.S. 
companies' investment in Hungary, but we note that events such as this 
case give rise to questions about the fairness and transparency of 
doing business in Hungary.
  We welcome the Prime Minister's commitment to investigate any 
complaint relating to foreign investments, and the decision by the 
Hungarian Parliament's Constitutional and Justice Committee to set up a 
body to examine the radio license transaction.
  Hungary is a close friend and ally of the United States, and we urge 
the government to take all necessary steps to ensure that foreign 
investors are treated fairly. I urge all of my colleagues to support 
this important resolution.
  Madam Speaker, I ask unanimous consent to split the time evenly in 
favor of the resolution with my colleague, Ms. Ros-Lehtinen of Florida.


                         Parliamentary Inquiry

  Mr. KUCINICH. Madam Speaker, parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state his inquiry.
  Mr. KUCINICH. The gentleman asks for unanimous consent to split the 
time between himself and Ms. Ros-Lehtinen. I have already claimed time 
in opposition. What does the Chair rule on that?
  The SPEAKER pro tempore. The gentleman from Ohio will control 20 
minutes in opposition.

[[Page H13564]]

  Is there objection to the request of the gentleman from New York that 
the gentlewoman from Florida control 10 minutes of the time in support?
  Without objection, the gentlewoman from Florida will control 10 
minutes.
  There was no objection.
  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Ohio.

                              {time}  1115

  Mr. KUCINICH. Madam Speaker and my colleagues, as Chair of the 
Hungarian American Caucus, I want to bring to the attention of this 
Congress the concerns that have been raised about H. Res. 915, 
legislation which ``encourages the Republic of Hungary to respect the 
rule of law, treat foreign investors fairly, and promote a free and 
independent press.''
  This legislation issues broad condemnation of the Republic of Hungary 
without regard to current legal proceedings that should receive more 
discussion. I urge my colleagues to consider the consequence of this 
legislation before casting a vote.
  It's already been stated that the Hungarian Prime Minister has given 
statements questioning the award of the contract, that there is a 
parliamentary committee looking into it, that courts are reviewing it, 
and that, in fact, there's a prosecutorial investigation in the offing.
  I have contacted the Hungarian Government, and in response to this 
congressional inquiry, the Hungarian Government pointed out that the 
licenses awarded to two national radio stations by the Hungarian 
National Radio and Television Board are under judicial review before 
the court: ``A criminal procedure related to the issue was launched 
with the prosecutor's office.''
  Now, if this doesn't indicate a responsiveness by the government to 
the award of the contract, I don't know what does. The question then 
comes, Why is this even on the floor of the House as a suspension?
  I stand by the right of every Member of this body to protect the 
interest of any business in any district. That's what we're here for. 
But I think that to put this resolution before the House for passage 
before any committee meetings have been held to review the actual 
extent of the Hungarian Government's involvement or lack thereof is 
really not consistent with our duties and due diligence on every piece 
of legislation.
  Now, the Hungarian National Radio and Television Board awarded 12-
year licenses to two national radio stations in 1997, to two companies, 
one based in the United States and another in Europe. The licenses 
expired last month and are the only licenses that allow for nationwide 
coverage by commercial rather than state-run radio broadcast services 
in Hungary. Following a national bidding process, the licenses were 
awarded to two Hungarian companies. Members across the political 
spectrum in Hungary have raised concerns regarding the manner in which 
the licenses were issued, and a U.S.-based telecommunication company 
filed legal proceedings in Hungarian court.
  Now, the legislation accurately states the importance of foreign 
investment and a need for equitable treatment in accordance with the 
United States and Hungarian laws. However, broad condemnation of the 
Republic of Hungary, charging the country, or implying, that there's 
widespread corruption without allowing legal processes to take place is 
more than problematic. This dispute should be resolved in Hungarian 
courts, which can render judgment and provide sufficient remedy to the 
injured party including, if they care to, revoke existing licenses, 
forcing a new round of competitive bidding, or awarding compensation. I 
mean, these are all things that the Republic of Hungary has the 
opportunity to do.
  But I just want to go back to the legislation itself, which raises 
questions about the integrity of the government itself. And, frankly, I 
don't think that's appropriate given the scope of the legislation and 
the grievances that Members have about the contract-awarding procedure.
  Madam Speaker, I reserve the balance of my time.
  Ms. ROS-LEHTINEN. Madam Speaker, I yield myself such time as I may 
consume.
  The bill before us, House Resolution 915, encourages the Republic of 
Hungary to respect the rule of law, treat foreign investors fairly, and 
promote a free and independent press.
  Since breaking the chains of communist dictatorship and Soviet 
domination, Hungary has made significant progress in implementing 
democracy and economic reforms. I congratulate the Hungarian people and 
its government for these significant steps. It has also become a full 
member of the Trans-Atlantic community, having joined both the NATO 
alliance and the European Union.
  In light of how far Hungary has come in just two decades since the 
fall of the Iron Curtain in integrating itself in Western institutions 
and embracing basic freedoms, some recent developments in that country 
regarding the freedom of the press and the rule of law have raised some 
concern.
  Specifically, political appointees to a government body that 
administers Hungary's airwaves have reportedly taken away two radio 
licenses from foreign-owned stations, one of them an American company, 
and have given the licenses to local firms that have links to Hungary's 
major political parties. The chairman of that government body 
administering the airwaves has resigned as a result, stating that the 
decision to take the licenses away from the foreign firms violated the 
law.
  Madam Speaker, the manner in which this Hungarian Government body 
reportedly treated these foreign companies also may raise concerns 
about Hungary's full commitment to a free and independent press. 
Political cronyism, corruption, and restriction on the media are relics 
of the old communist system and the old parties. The Hungarian people 
do not wish to resurrect these harmful policies. Not just foreign 
investors in Hungary but the Hungarian people deserve much better. They 
have worked too hard. They have gone through too much to make their 
beautiful country, Hungary, a free and democratic nation.
  The sponsors of this measure, Mr. Donnelly, Mr. Pence and Mr. Burton, 
have introduced this resolution which condemns the recent action by the 
Hungarian National Radio and Television Board. It encourages the 
Republic of Hungary to continue to promote and respect the rule of law 
and treat foreign investors fairly. And, lastly, it encourages the 
Republic of Hungary to maintain its strong and vibrant commitment to a 
free and independent press.
  Madam Speaker, I reserve the balance of my time.
  Mr. ENGEL. Madam Speaker, I yield 5 minutes to the gentleman from 
Indiana (Mr. Donnelly).
  Mr. DONNELLY of Indiana. Madam Speaker, I rise in support of House 
Resolution 915, a resolution that encourages Hungary to respect the 
rule of law, treat foreign investors fairly, and to promote a free and 
independent press.
  I appreciate the words of my good friend from Ohio, but I would just 
like to say that this resolution expresses our concern and condemns the 
Hungarian Radio and Television Board's process in granting these 
licenses. It does not question the Government of Hungary's efforts and 
it does not question our full confidence in their ability to resolve 
this matter. We welcome the government's steps in moving this forward.
  For decades the Hungarian people fought against communist rule for 
the chance at freedom and democracy. They have been our ally, they 
joined NATO in 1999, and the country of Hungary is a good and dear 
friend of the United States of America. We must ensure that this 
friendship continues to maintain in a healthy and engaged way and that 
it continues to foster economic growth for our countries.
  In 1997 the Hungarian National Radio and Television Board, ORTT, 
awarded licenses for two national radio stations. One of these licenses 
was awarded to an American company, the other to a European company, 
each for a total of 12 years. These terms ended on November 19 of this 
year. The Financial Times reported on November 6 that shortly before 
these bids of renewal for the national licenses were due that the 
companies were approached by individuals claiming to represent various 
parties in Hungary.

[[Page H13565]]

They offered to extend these companies' licenses if they received 50 
percent of the equity. Both companies refused this attempt, and the 
ORTT voted to award these licenses to two connected local bidders 
instead.
  We want to ensure the fullness and fairness that will be provided by 
the Government of Hungary's review, and we want to make sure that this 
resolution expresses our concern and condemns the actions of the ORTT.
  U.S. investors are an important part of the Hungarian economy and 
deserve equitable treatment. We have invested over $9 billion in 
Hungary since 1989. The friendship is strong, the friendship is 
unbreakable, and we are the fourth largest contributor to direct 
foreign investment in Hungary.
  This resolution, as indicated, expresses our concerns and condemns 
the ORTT's actions, and we ask the Government of Hungary to treat 
foreign investors fairly and fully respect the rule of law, as we know 
they will. I urge my colleagues to support this resolution, to pass 
House Resolution 915.
  Ms. ROS-LEHTINEN. Madam Speaker, I continue to reserve the balance of 
my time.
  Mr. ENGEL. Madam Speaker, I reserve the balance of my time.
  Mr. KUCINICH. Madam Speaker, this resolution encourages the Republic 
of Hungary to respect the rule of law. Now, if you're encouraging 
someone to respect the law, the underlying assumption is that they 
don't.
  I think that to look at the action of a single agency and to put a 
broad brush on an entire national government is really grossly unfair. 
To imply that Hungary does not respect the law is actually an insult to 
the people of Hungary, who put their lives on the line in 1956 fighting 
to break free of domination by the Soviet Union, who put their lives on 
the line to be able to establish a democracy and self-determination.

                              {time}  1130

  Is this what they deserve? Do the people of Hungary really deserve to 
be treated this way? This should have been handled diplomatically. This 
should have been handled at a committee level before bringing it to the 
floor of the House of Representatives. And with respect to foreign 
investors, since the Government of Hungary has itself launched an 
investigation into the award of this contract, doesn't that show that 
they want foreign investors to be treated fairly? Doesn't it show that 
they respect the rule of law by going forward to raise the potential of 
prosecution of people involved in the award of this contract? Don't we 
already have what it is that this legislation supposedly aspires to, 
evidence of respect for the law and fair treatment of foreign 
investors?
  There is no evidence that the Republic of Hungary has suddenly taken 
a tilt towards Soviet-type control of the press; I hope that no one is 
seriously asserting that. Hungary is a proud and free society, and we 
should be very careful about moving forward with resolutions that in 
any way imply otherwise, not to say simultaneously, well, Hungary is a 
law-abiding nation, and then say, well, they ought to respect the law.
  So again, I wish that the sponsors of this legislation, who I deeply 
respect and who I know are working very hard for their constituents and 
the business community as well as for all the people in their 
districts. I would say take another look at this and maybe send it to 
committee so that we could have the opportunity to have a deeper 
discussion about the advisability of the legislation, and maybe to 
tailor it even more firmly. I mean, I could agree with questioning the 
action by the Hungarian National Radio and Television Board--the 
Hungarian Government is questioning that action, but to challenge the 
entire government's integrity when the government has already taken 
action to raise questions itself about the award of a contract, really 
we have to ask what we're doing here.
  Madam Speaker, I reserve the balance of my time.
  Ms. ROS-LEHTINEN. Madam Speaker, I yield back the balance of my time 
and I thank the gentleman from New York.
  Mr. ENGEL. Madam Speaker, I yield myself such time as I may consume.
  I just want to answer the gentleman from Ohio, for whom I have 
profound respect. And I want to do it by just reading what this 
resolution says because I don't think it implies what he thinks it 
implies.
  First of all, at the start of the resolution we talk about the brave 
people of Hungary and how they rose up against domination, Communist 
domination, Soviet domination in 1956, and whereas the Hungarian people 
fought bravely for freedom, democracy and human rights. And we talk 
about celebrating the fact that they have become a member of NATO and a 
member of the European Union. And at the end the bill simply says, and 
let me read it, ``Resolved, that the House of Representatives (1) 
condemns the recent action by the Hungarian National Radio and 
Television Board that awarded the national community radio licenses; 
(2) encourages the Republic of Hungary to respect the rule of law and 
treat foreign investors fairly; and (3) encourages the Republic of 
Hungary to maintain its commitment to a free and independent press.'' I 
don't think that implies anything; I think that it encourages them.
  And obviously this resolution is bipartisan. It was a company from 
Indiana that was wronged, and that is why you have Mr. Donnelly, Mr. 
Burton and Mr. Pence from different parties, but all from Indiana, very 
concerned about this as well. So I don't think this casts any 
aspersions on Hungary, its people, or its government; quite the 
opposite, I think clearly in the resolution it celebrates the great 
partnership and alliance that we have with Hungary and all the brave 
things that the Hungarian people did during the past 50 years. I just 
wanted to point that out.
  I reserve the balance of my time.
  Mr. KUCINICH. May I inquire as to how much time I have remaining?
  The SPEAKER pro tempore. The gentleman from Ohio controls 11\1/2\ 
minutes.
  Mr. KUCINICH. I question why this resolution was brought before this 
House under suspension. I question why an effort by the proponents of 
the legislation wasn't made to contact the Hungarian Government and to 
learn that their position is in fact that there is a judicial review 
and that there is a criminal procedure related to the issue that was 
launched with the prosecutor's office because that would clearly 
indicate action being taken on the part of the government to look at 
this particular contract.
  Why is this matter on the floor of the House of Representatives? Why 
are we taking this time to look at something that is already under 
review by the Hungarian Government and doing it in the context of 
urging the Hungarian Government to have respect for law? That's what 
they're doing, they are showing respect for law by taking this forward. 
Why do they need to be encouraged? Everyone here understands what that 
means; we're implying that they don't respect the law unless their 
judicial response is a certain way. That is not an appropriate way to 
proceed here. And again, it is very difficult when you have a colleague 
who you want to agree with on everything present a resolution with 
which you don't agree.
  I reserve the balance of my time.
  Mr. ENGEL. Madam Speaker, I yield 1 minute to the author of this 
resolution, the gentleman from Indiana (Mr. Donnelly).
  Mr. DONNELLY of Indiana. And I, too, have the greatest respect and 
friendship for my colleague from Ohio, but I did want to comment that 
we, in fact, did meet with the Hungarian Ambassador and did meet with 
him in my office here at the Capitol. And there is no implication in 
any way that Hungary does not respect the rule of law; in fact, we are 
very, very proud of the partnership and friendship that has been built 
with Hungary. What we are trying to do is express our concern about the 
conduct of the Hungarian Radio and Television Board, a concern we also 
expressed to the Hungarian Ambassador. And we are hopeful that this 
will be resolved in the near future.
  Mr. ENGEL. Madam Speaker, I reserve the balance of my time.
  Mr. KUCINICH. As my colleague has stated, this resolution is intended 
to address the actions of the Hungarian National Radio and Television 
Board; they are the ones who awarded the contract. But yet, in the same 
breath, we're asking the Hungarian Government to respect the rule of 
law. Is

[[Page H13566]]

there any other example, other than the action of a single board, that 
any proponent of this legislation can point to which indicates that the 
Republic of Hungary does not respect the rule of law? Or are we simply 
talking about one agency? Because if we're talking about one agency, 
then the resolution should have been written in a different way. 
Because the impact of this resolution is not going to be just to talk 
about the decision of one agency, it is going to imply, very broadly, 
that the Government of Hungary does not respect the rule of law. That 
passage should have been struck from this legislation.
  I ask my colleague, Mr. Engel, if you look at the second part of the 
enactment clause, if he would consider striking that.
  I yield to the gentleman from New York.
  Mr. ENGEL. Well, let me say to my friend that it is not my 
resolution; it is Mr. Donnelly's resolution. I don't think it is 
appropriate for me to strike anything.


                         Parliamentary Inquiry

  Mr. KUCINICH. Parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. KUCINICH. Is a motion to strike in order by the manager of the 
bill, or would the sponsor of the bill have to ask for such a motion?
  The SPEAKER pro tempore. A motion to suspend the rules is not 
amendable.
  Mr. KUCINICH. So since this legislation is being offered under 
suspension, then no motion to strike would be in order; is that right?
  The SPEAKER pro tempore. The gentleman is correct. A motion to 
suspend the rules is not amendable.
  Mr. KUCINICH. Okay. I withdraw my request for a colloquy with my 
friend from New York.
  I just think if it was so important to bring this to the floor, it 
should have been tailored quite narrowly to talk about the Hungarian 
National Radio and Television Board and not to take a broad brush with 
which we paint the Government of Hungary.
  I reserve the balance of my time.
  The SPEAKER pro tempore. The gentleman from New York has 1\1/2\ 
minutes remaining. The gentleman from Ohio controls 7 minutes.
  The gentleman from New York has the right to close.
  Mr. KUCINICH. I think that in the time that I had allotted, I had an 
opportunity to present my point here. And I just hope that when my 
colleagues vote on this later on in the day that they will consider the 
diplomatic implications of voting for this resolution.
  And I will say again, and this is really a concern that I have that I 
want to express to the leaders of the House of Representatives, we have 
a lot of bills that come to this floor under suspension that 
appropriately should be discussed in committee before they come to the 
floor of the House. I think this is a good example of such a bill. And 
I would ask our leadership to please pay more careful attention to 
these issues because this House has very valuable time, and while we 
have the freedom of speech on this floor, the speech gets very 
expensive when there are so many other issues waiting for discussion on 
the floor.
  I appreciate the opportunity here. I want to thank my colleague, 
Ileana Ros-Lehtinen, for what she has expressed and for the concerns 
that Mr. Donnelly and Mr. Engel have expressed.
  I yield back the balance of my time.
  Mr. ENGEL. Madam Speaker, I would just urge my colleagues to support 
this bipartisan bill. This really is not a controversial bill. This is 
really, with all due respect, a tempest in a teapot. I think that 
simply, again, I will read the first sentence----
  Mr. KUCINICH. Will the gentleman yield?
  Mr. ENGEL. Let me just finish and I will be happy to yield. I would 
read the first sentence in this resolution, which says, ``Encouraging 
the Republic of Hungary to respect the rule of law, treat foreign 
investors fairly, and promote a free and independent press.'' I don't 
think anyone can disagree with that, not even my friend from Ohio. And 
I will now yield to him.
  Mr. KUCINICH. With all due respect to my good friend, Mr. Engel, you 
have compared this to a tempest in a teapot. It's your teapot and it's 
your tempest.
  Mr. ENGEL. Well, let me say to my friend, it's not my tempest and 
it's not my teapot. I wish the gentleman had come to us earlier before 
we were having the vote scheduled. We did not know of his objections 
prior to this debate. And perhaps if he had come to us a little bit 
earlier we might have been willing to accommodate him, but not knowing 
about it and being blindsided by his objection, I think it's kind of a 
little bit difficult to change it.
  Mr. KUCINICH. Will the gentleman yield?
  Mr. ENGEL. No, I have yielded enough.
  Mr. PENCE. Madam Speaker, I rise in support of H. Res. 915, a 
resolution of the House of Representatives encouraging the Republic of 
Hungary to respect the rule of law, treat foreign investors fairly, and 
promote a free and independent press.
  I would like to thank my Indiana colleagues, especially Congressmen 
Joe Donnelly and Baron Hill, for their yeoman's work on this issue. 
Chairman Howard Berman and Ranking Member Ileana Ros-Lehtinen also were 
instrumental in bringing this important resolution to the floor.
  What could and should have been a fair competition to rebid Hungary's 
only two national, commercial FM radio broadcast licenses is now mired 
in allegations of political corruption. As nine embassies in Hungary 
including the United States warned in a joint letter last month, we are 
concerned that such instances of non-transparent behavior affecting 
investors could discourage foreign investment and hamper economic 
growth in Hungary. This concern is underscored by a report commissioned 
by the Public Procurement Council in Hungary, which recently found that 
between 70 and 90 percent of all public procurements in Hungary are 
tainted by corruption.
  The broadcast licenses previously held by Slager Radio (owned by an 
Indianapolis-based company) and Danubius Radio (owned by a Vienna-based 
private equity firm) were recently awarded by the Hungarian National 
Radio and Television Board (ORTT) to other bidders despite unrealistic 
business plans and irregularities in those bids that I am told should 
have disqualified them under Hungarian media law. Not only that, but 
prior to the ORTT's highly controversial decision, Slager and Danubius 
were reportedly approached by agents of the Fidesz and Socialist 
parties seeking to acquire partial control of the stations to ensure 
their licenses would be renewed. Although the ORTT chairman resigned in 
protest and refused to sign the contracts, the delegates appointed to 
the ORTT by the Fidesz and Socialist parties all voted in favor of the 
two new stations. A poll of Hungarians suggested that six of out ten 
agreed that the decision to end the broadcast rights of Slager Radio 
and Danubius was ``outrageous.''
  Slager and Danubius have appealed the ORTT decision, but litigation 
could drag on for years, while their popular broadcasts were forced off 
the air on November 18 of this year, the same day we introduced this 
resolution. In addition, the Hungarian parliament voted to investigate 
the matter and a prosecutor is looking into whether criminal charges 
are warranted. I am encouraged by these steps and it is certainly my 
hope that the matter will be expeditiously resolved.
  U.S. and other foreign investors deserve equitable treatment in 
accordance with Hungarian law. It bears mentioning that the United 
States is the fourth-largest contributor to foreign investment in 
Hungary and the largest non-European source of investment. The United 
States has invested over nine billion dollars in Hungary since 1989.
  Unfair treatment of foreign companies will deter investment and 
hinder economic growth, while upholding the rule of law and promoting a 
free and independent press--as we urge in this resolution--would 
instead spur investor confidence.
  In conclusion, we bring this resolution to the floor of the U.S. 
House of Representatives today in solidarity with all Hungarians 
demanding a through and expeditious investigation into the highly 
questionable circumstances surrounding the awarding of these radio 
licenses and fair competitions in public procurements that will 
demonstrate Hungary's commitment to respect the rule of law, treat 
foreign investors fairly and promote a free and independent press.
  Mr. ENGEL. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Engel) that the House suspend the rules 
and agree to the resolution, H. Res. 915.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.

[[Page H13567]]

  Mr. KUCINICH. Madam 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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