[Congressional Record Volume 163, Number 155 (Wednesday, September 27, 2017)]
[Senate]
[Pages S6177-S6178]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                           Tarbert Nomination

  Mr. President, I rise to speak on the nomination of Heath Tarbert, 
who has been nominated by President Trump to be the Assistant Secretary 
of the Treasury for International Markets and Development. If 
confirmed, Mr. Tarbert will be in charge of the Treasury Department's 
role on a multi-agency body called the Committee on Foreign Investment 
in the United States, or CFIUS, which reviews whether foreign 
acquisitions of a U.S. company would pose a threat to our national 
security and then makes recommendations to the President on whether the 
President should block the transaction.
  This is not about whether foreign investment benefits our economy. Of 
course it does. The United States is the third largest recipient of 
foreign direct investment, and our markets attract the world's best 
talent and capital. Going back to the 1990s, only four foreign 
acquisitions of American companies have ever been blocked by a 
President based on a recommendation of the Committee on Foreign 
Investment in the United States. This is about whether our national 
security is put at risk when foreign governments, foreign state-owned 
enterprises, and foreign investors acquire our companies and assets. 
This is also about foreign governments and the companies they own,

[[Page S6178]]

trying to gain access to sensitive technologies that are important to 
our military and our national security.
  The risk posed to the security of the United States is real. I want 
you to consider just one example here. According to a news report last 
year, an internal Pentagon report found that China was making 
significant targeted investments in cutting-edge American startups, 
with expertise in areas like autonomous vehicles, artificial 
intelligence, and robotics. These can be transactions that don't 
necessarily result in foreign control over one of our companies, but 
they can give a foreign adversary access to technologies that could 
harm our strategic interests and erode our military advantage.
  The risk is significant, but unfortunately CFIUS does not apply to 
these transactions. The problem is, CFIUS was created back in 1975. 
Since then, both technology and the nature of foreign acquisitions, 
mergers, and takeovers have changed substantially. The nature of the 
threats we face has also changed substantially. Our top military 
leaders--such as the Secretary of Defense and Chairman of the Joint 
Chiefs--believe that CFIUS needs to be updated to fully address them, 
and I agree.
  Another concern is that CFIUS does not focus enough on whether the 
benefits of foreign acquisition outweigh the costs when it comes to the 
competitiveness of American workers. While I recognize that CFIUS has 
historically focused on the national security impacts of foreign 
investment, I think Congress should consider elevating the Department 
of Labor to the group of agencies that are currently part of the core 
CFIUS review process. If we believe economic security and national 
security are intertwined, then I think we can both look out for the 
American worker and review the national security threats posed by 
foreign acquisitions.
  Finally, the ethics problems that are everywhere in this 
administration come forward again in the area of national security. We 
all know President Trump, his family members, and other Trump 
administration officials have business ties in the United States and 
throughout the world, even if we don't know the full extent of 
President Trump's business ties because he will not release his tax 
returns.
  Imagine a Trump administration official who has a financial stake in 
an American company, a foreign state-owned company or both. Now imagine 
that a foreign company backed by China, Russia, or another foreign 
adversary tries to acquire a U.S. company and a Trump official suddenly 
has financial ties to that transaction and then that transaction 
triggers a CFIUS review for national security concerns. If that 
scenario were to occur, I am deeply concerned about the conflicts of 
interests that could emerge. I would expect CFIUS to vigorously review 
such an investment as it affects our national security.
  I raised all of these issues with Mr. Tarbert when I met with him 
today and his answers improved from when I asked him about these issues 
earlier this year, but I remain concerned about his commitment to 
modernize CFIUS and to ensure that CFIUS does more to consider the 
impact of foreign acquisitions on American workers. I hope I am wrong, 
but I still have concerns about his nomination, which is why I will 
vote against it.
  Mr. Tarbert promised me that if confirmed, he would work to ensure 
that no transaction is approved by CFIUS if national security concerns 
remain unresolved, and that is encouraging to hear. If he is ultimately 
confirmed, I will use my position in the Senate Banking Committee to 
hold him to that promise because the threats we face are growing in 
complexity, and the Committee on Foreign Investment in the United 
States must be ready to confront them. We don't want to wake up one day 
and discover that our adversaries have access to key components of our 
national security technology because Congress and the White House were 
asleep at the wheel.
  If confirmed, I will work in good faith with Mr. Tarbert to ensure 
that the Committee on Foreign Investment in the United States is 
updated so it is in the strongest position to protect our national 
security--both from the threats we face today and the threats we will 
face in the future.
  Thank you.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  Mr. CRAPO. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CRAPO. Mr. President, I rise to speak in support of the 
nomination of Mr. Heath Tarbert to be Assistant Secretary of the 
Treasury for International Markets and Development. This position is 
both a critical national security and international economic policy 
job.
  A critical part of the Assistant Secretary's job--and the reason for 
which this position was created by statute and passed in the Banking 
Committee--is to marshal the procedures and processes of the 
interagency, Treasury-led Committee on Foreign Investment in the United 
States, or CFIUS, which protects our Nation from hostile foreign 
transactions designed to undermine U.S. national security interests.
  This is now a very time-sensitive post because Senators on both sides 
of the aisle are working to introduce legislation to change the CFIUS 
process for the first time in a decade.
  Confirmation of Mr. Tarbert is critical so that he is available to 
provide necessary input on any proposed changes and to swiftly 
implement any new legislation.
  Mr. Tarbert would also serve as the principal policy advisor to the 
Secretary on international economic matters, including serving as the 
Treasury's representative at the Financial Stability Board.
  Finally, Mr. Tarbert has strong bipartisan support and was voice-
voted out of the Banking Committee.
  Mr. Tarbert has served in senior roles in all three branches of 
government and is an experienced lawyer and a recognized financial 
expert.
  In short, he is an important asset whom the Congress and Treasury 
Department do not want to lose to further delay.
  I urge all of my colleagues to support Mr. Tarbert's nomination today 
and to vote for his confirmation.
  With that, I yield the floor.