[Congressional Record (Bound Edition), Volume 147 (2001), Part 16]
[House]
[Pages 23040-23048]
[From the U.S. Government Publishing Office, www.gpo.gov]



                        CLEAN DIAMOND TRADE ACT

  Mr. THOMAS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2722), to implement a system of requirements on the 
importation of diamonds and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 2722

       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 ``Clean Diamond Trade Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Funds derived from the sale of rough diamonds are being 
     used by rebels and state actors to finance military 
     activities, overthrow legitimate governments, subvert 
     international efforts to promote peace and stability, and 
     commit horrifying atrocities against unarmed civilians. 
     During the past decade, more than 6,500,000 people from 
     Sierra Leone, Angola, and the Democratic Republic of the 
     Congo have been driven from their homes by wars waged in 
     large part for control of diamond mining areas. A million of 
     these are refugees eking out a miserable existence in 
     neighboring countries, and tens of thousands have fled to the 
     United States. Approximately 3,700,000 people have died 
     during these wars.
       (2) The countries caught in this fighting are home to 
     nearly 70,000,000 people whose societies have been torn apart 
     not only by fighting but also by terrible human rights 
     violations.
       (3) Human rights advocates, the diamond trade as 
     represented by the World Diamond Council, and the United 
     States Government recently began working to block the trade 
     in conflict diamonds. Their efforts have helped to build a 
     consensus that action is urgently needed to end the trade in 
     conflict diamonds.
       (4) The United Nations Security Council has acted at 
     various times under chapter VII of the Charter of the United 
     Nations to address threats to international peace and 
     security posed by conflicts linked to diamonds. Through these 
     actions, it has prohibited all states from exporting weapons 
     to certain countries affected by such conflicts. It has 
     further required all states to prohibit the direct and 
     indirect import of rough diamonds from Angola and Sierra 
     Leone unless the diamonds are controlled under specified 
     certificate of origin regimes and to prohibit absolutely for 
     a period of 12 months the direct and indirect import of rough 
     diamonds from Liberia.
       (5) In response, the United States implemented sanctions 
     restricting the importation of rough diamonds from Angola and 
     Sierra Leone to those diamonds accompanied by specified 
     certificates of origin and fully prohibiting the importation 
     of rough diamonds from Liberia. In order to put an end to the 
     emergency situation in international relations, to maintain 
     international peace

[[Page 23041]]

     and security, and to protect its essential security 
     interests, and pursuant to its obligations under the United 
     Nations Charter, the United States is now taking further 
     action against trade in conflict diamonds.
       (6) Without effective action to eliminate trade in conflict 
     diamonds, the trade in legitimate diamonds faces the threat 
     of a consumer backlash that could damage the economies of 
     countries not involved in the trade in conflict diamonds and 
     penalize members of the legitimate trade and the people they 
     employ. To prevent that, South Africa and more than 30 other 
     countries are involved in working, through the ``Kimberley 
     Process'', toward devising a solution to this problem. As the 
     consumer of a majority of the world's supply of diamonds, the 
     United States has an obligation to help sever the link 
     between diamonds and conflict and press for implementation of 
     an effective solution.
       (7) Failure to curtail the trade in conflict diamonds or to 
     differentiate between the trade in conflict diamonds and the 
     trade in legitimate diamonds could have a severe negative 
     impact on the legitimate diamond trade in countries such as 
     Botswana, Namibia, South Africa, and Tanzania.
       (8) Initiatives of the United States seek to resolve the 
     regional conflicts in sub-Saharan Africa which facilitate the 
     trade in conflict diamonds.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Conflict diamonds.--The term ``conflict diamonds'' 
     means rough diamonds the import of which is prohibited by 
     United Nations Security Council Resolutions because that 
     trade is fueling conflict.
       (2) Diamonds.--The term ``diamonds'' means diamonds 
     classifiable under subheading 7102.31.00 or subheading 
     7102.39.00 of the Harmonized Tariff Schedule of the United 
     States.
       (3) Polished diamonds.--The term ``polished diamonds'' 
     means diamonds classifiable under subheading 7102.39.00 of 
     the Harmonized Tariff Schedule of the United States.
       (4) Rough diamonds.--The term ``rough diamonds'' means 
     diamonds that are unworked, or simply sawn, cleaved, or 
     bruted, classifiable under subheading 7102.31.00 of the 
     Harmonized Tariff Schedule of the United States.
       (5) United states.--The term ``United States'', when used 
     in the geographic sense, means the several States, the 
     District of Columbia, and any commonwealth, territory, or 
     possession of the United States.

     SEC. 4. MEASURES TO PREVENT IMPORTS OF CONFLICT DIAMONDS.

       (a) Authority of the President.--The President may 
     prohibit, in whole or in part, imports of rough diamonds into 
     the United States from any country that does not take 
     effective measures to stop trade in conflict diamonds as long 
     as the prohibition is--
       (1) necessary to protect the essential security interests 
     of the United States, or pursuant to United Nations Security 
     Council Resolutions on conflict diamonds; and
       (2) consistent with the foreign policy interests of the 
     United States, including the international obligations of the 
     United States.
       (b) Effective Measures.--For purposes of this Act, 
     effective measures are measures that--
       (1) meet the requirements of United Nations Security 
     Council Resolutions on trade in conflict diamonds;
       (2) meet the requirements of an international arrangement 
     on conflict diamonds as long as the measures also meet the 
     requirements of United Nations Security Council Resolutions 
     on trade in conflict diamonds; or
       (3) contain the following elements, or their functional 
     equivalent, if such elements are sufficient to meet the 
     requirements of United Nations Security Council Resolutions 
     on trade in conflict diamonds:
       (A) With respect to exports from countries where rough 
     diamonds are extracted, secure packaging, accompanied by 
     officially validated documentation certifying the country of 
     origin, total carat weight, and value.
       (B) With respect to exports from countries where rough 
     diamonds are extracted, a system of verifiable controls on 
     rough diamonds from mine to export.
       (C) With respect to countries that reexport rough diamonds, 
     a system of controls designed to ensure that no conflict 
     diamonds have entered the legitimate trade in rough diamonds.
       (D) Verifiable recordkeeping by all companies and 
     individuals engaged in mining, import, and export of rough 
     diamonds within the territory of the exporting country, 
     subject to inspection and verification by authorized 
     government authorities in accordance with national 
     regulations.
       (E) Government publication on a periodic basis of official 
     rough diamond export and import statistics.
       (F) Implementation of proportionate and dissuasive 
     penalties against any persons who violate laws and 
     regulations designed to combat trade in conflict diamonds.
       (G) Full cooperation with the United Nations or other 
     official international bodies examining the trade in conflict 
     diamonds, especially with respect to any inspection and 
     monitoring of the trade in rough diamonds.
       (c) Exclusions.--The provisions of this section do not 
     apply to--
       (1) rough diamonds imported by or on behalf of a person for 
     personal use and accompanying a person upon entry into the 
     United States;
       (2) rough diamonds previously exported from the United 
     States and reimported by the same importer, without having 
     been advanced in value or improved in condition by any 
     process or other means while abroad, if the importer declares 
     that the reimportation of the rough diamonds satisfies the 
     requirements of this paragraph; or
       (3) rough diamonds for which the importer provides evidence 
     to the satisfaction of the United States Customs Service (or 
     analogous officials of a territory or possession of the 
     United States with its own customs administration) that the 
     importation does not include conflict diamonds.

     SEC. 5. PROHIBITION OF POLISHED DIAMONDS AND JEWELRY.

       The President may prohibit specific entries of polished 
     diamonds and jewelry containing diamonds if the President has 
     credible evidence that such polished diamonds and jewelry 
     were produced with conflict diamonds.

     SEC. 6. ENFORCEMENT.

       Diamonds and jewelry containing diamonds imported into the 
     United States in violation of any prohibition imposed under 
     section 4 or 5 are subject to the seizure and forfeiture 
     laws, and all criminal and civil laws of the United States 
     shall apply, to the same extent as any other violation of the 
     customs and navigation laws of the United States.

     SEC. 7. REPORTS.

       (a) Annual Reports.--Not later than one year after the 
     effective date of this Act, and every 12 months thereafter, 
     the President shall transmit to Congress a report--
       (1) describing actions taken by countries that have 
     exported rough diamonds to the United States during the 
     preceding 12-month period to implement effective measures to 
     stop trade in conflict diamonds;
       (2) identifying those countries that have exported rough 
     diamonds to the United States during the preceding 12-month 
     period and are not implementing effective measures to stop 
     trade in conflict diamonds and whose failure to do so has 
     significantly increased the likelihood that conflict diamonds 
     are being imported into the United States;
       (3) describing appropriate actions, which may include 
     actions under sections 4 and 5, that may be taken by the 
     United States, or actions that may be taken or are being 
     taken by each country identified under paragraph (2), to 
     ensure that conflict diamonds are not being imported into the 
     United States from such country; and
       (4) identifying any additional countries involved in 
     conflicts linked to rough diamonds that are not the subject 
     of United Nations Security Council Resolutions on conflict 
     diamonds.
       (b) Semiannual Reports.--For each country identified in 
     subsection (a)(2), the President shall, every 6 months after 
     the initial report in which the country was identified, 
     transmit to Congress a report that explains what actions have 
     been taken by the United States or such country since the 
     previous report to ensure that conflict diamonds are not 
     being imported from that country into the United States. The 
     requirement to issue a semiannual report with respect to a 
     country under this subsection shall remain in effect until 
     such time as the country implements effective measures.

     SEC. 8. GAO REPORT.

       Not later than 3 years after the effective date of this 
     Act, the Comptroller General of the United States shall 
     transmit a report to Congress on the effectiveness of the 
     provisions of this Act in preventing the importation of 
     conflict diamonds under section 4. The Comptroller General 
     shall include in the report any recommendations on any 
     modifications to this Act that may be necessary.

     SEC. 9. SENSE OF CONGRESS.

       (a) International Arrangement.--It is the sense of Congress 
     that the President should take the necessary steps to 
     negotiate an international arrangement, working in concert 
     with the Kimberley Process referred to in section 2(6), to 
     eliminate the trade in conflict diamonds. Such an 
     international arrangement should create an effective global 
     system of controls covering countries that export and import 
     rough diamonds, and should contain the elements described in 
     section 4(b)(3).
       (b) Additional Security Council Resolutions.--It is the 
     sense of Congress that the President should take the 
     necessary steps to seek United Nations Security Council 
     Resolutions with respect to trade in diamonds from additional 
     countries identified under section 7(a)(4).
       (c) Trade in Legitimate Diamonds.--It is the sense of 
     Congress that the provisions of this Act should not impede 
     the trade in legitimate diamonds with countries which are 
     working constructively to eliminate trade in conflict 
     diamonds, including through the negotiation of an effective 
     international arrangement to eliminate trade in conflict 
     diamonds.
       (d) Implementation of Effective Measures.--It is the sense 
     of Congress that companies involved in diamond extraction and

[[Page 23042]]

     trade should make financial contributions to countries 
     seeking to implement any effective measures to stop trade in 
     conflict diamonds described in section 4(b), if those 
     countries would have financial difficulty implementing those 
     measures.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to the President 
     $5,000,000 for each of fiscal years 2002 and 2003 to provide 
     assistance to countries seeking to implement any effective 
     measures to stop trade in conflict diamonds described in 
     section 4(b), if those countries would have financial 
     difficulty implementing those measures.

     SEC. 11. EFFECTIVE DATE.

       This Act shall take effect on the date of the enactment of 
     this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Thomas) and the gentleman from California (Mr. Matsui) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Thomas).
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume; 
and following that, I yield the balance of my time to the gentleman 
from New York (Mr. Houghton), and I ask unanimous consent that Mr. 
Houghton control the remainder of the time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. THOMAS. Mr. Speaker, it is my pleasure to tell my colleagues that 
the process of accommodation and compromise is alive and well. The 
legislation we have in front of us is supported by the administration, 
and I have for the Record and, when appropriate, I will place in the 
Record the letter from the United States Department of State which 
indicates that the administration supports H.R. 2722. It does so as a 
means to sever the link, the letter says, between the rough and 
conflict diamonds, while preserving the trade in legitimate diamonds.
  The letter goes on to say: ``The Office of Management and Budget 
advises that from the standpoint of the administration's program, there 
is no objection to the submission of this letter.''
  Mr. Speaker, I will insert the letter for the Record at this time.

                                          Department of State,

                                Washington, DC, November 27, 2001.
     Hon. William M. Thomas,
     Chairman, Committee on Ways and Means, House of 
         Representatives.
       Dear Mr. Chairman: The Administration supports H.R. 2722, 
     the Clean Diamond Trade Act, as amended.
       Funds derived from the sale of rough diamonds are being 
     used to fund rebel conflicts and commit atrocities against 
     unarmed civilians. Passage of H.R. 2722 would further the 
     objectives of the United Nations Security Council Resolutions 
     on these conflict diamonds by giving the President the 
     discretion to prohibit imports of rough diamonds into the 
     United States from any country that does not take effective 
     measures to stop trade in conflict diamonds. The 
     Administration supports this amended bill as a means to sever 
     the link between rough and conflict diamonds while preserving 
     the trade in legitimate diamonds.
       The Office of Management and Budget advises that from the 
     standpoint of the Administration's program, there is no 
     objection to the submission of this letter.
       I hope this information is useful to you. Please do not 
     hesitate to call if we can be of further assistance.
           Sincerely,

                                                Paul V. Kelly,

                                              Assistant Secretary,
                                              Legislative Affairs.

  Mr. Speaker, I want to thank the gentleman from Ohio (Mr. Hall), the 
gentleman from Virginia (Mr. Wolf), and especially on the committee, 
the chairman and the subcommittee chairman, the gentleman from New York 
(Mr. Houghton). I know also that the gentleman from California (Mr. 
Matsui) was involved, as well as the gentleman from New York (Mr. 
Rangel) was involved, and the gentleman from California (Mr. Stark) was 
involved in producing a piece of legislation in which we meet the basic 
objectives, but which no one is now in opposition to, and that includes 
the administration.
  That is the way we are supposed to resolve the legislation in areas 
that are so sensitive, and the question of whether or not we try to 
regulate the movement of every diamond on Earth, or we set up a process 
in which people who are utilizing the sale of diamonds to carry out 
acts of terrorism and other heinous acts are unable to do so.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of this important legislation. First, I would like 
to take this opportunity to thank the gentleman from Ohio (Mr. Hall), 
the gentleman from New York (Mr. Houghton), and the gentleman from 
Virginia (Mr. Wolf) for their tenacity and commitment in seeing this 
bill through. Each of them has helped keep the spotlight focused on the 
terrible toll this trade in conflict diamonds has had on the people of 
sub-Saharan Africa.
  Second, I want to express our appreciation to the administration and 
certainly to the gentleman from California (Mr. Thomas) for working 
with all interested parties, including the ranking member, the 
gentleman from New York (Mr. Rangel), a member of the committee, to 
develop this bill.
  I know that the administration and the gentleman from California (Mr. 
Thomas) had reservations with the legislation; however, they took the 
time necessary to review those reservations and to develop a mutually 
acceptable response to this issue. As the gentleman from California has 
said, no one opposes this legislation at this time.
  The bill we are discussing, the Clean Diamond Trade Act, sends an 
important message of support to a continent which has seen far more 
than its fair share of pain and suffering. It reflects a strong 
commitment to the ongoing international dialogue that is aimed at 
dealing with this difficult problem. As with all compromises, this bill 
does not have everything the original sponsors would like to see in it. 
However, it is a significant step in the right direction.
  Passage of the Clean Diamond Trade Act will undercut a conflict 
diamond trade that has financed organizations that have killed several 
million people, driven millions from their homes, and committed 
countless human rights abuses. The violent conflicts spurred by these 
groups are an impediment to growth and development throughout sub-
Saharan Africa. By stemming this illegal trade, we can remove a key 
barrier to progress and prosperity in these countries.
  Passage of this bill also will help our war against terrorism, as 
conflict diamonds have become increasingly part of the money laundering 
activities of the al Qaeda organization. Furthermore, if we pass this 
bill, we will preserve the dignity of an entire industry which can and 
should be a source of wealth for countries around the world. If we pass 
this bill, we promote legitimate diamond trade, allowing countries like 
Botswana to continue to benefit from the rich natural resource 
endowment.

                              {time}  1730

  If we pass this bill, Mr. Speaker, we send a signal to the 
international community that we are engaged, that we take this issue 
seriously, and we hope an international agreement can be reached soon 
that will bring us one step closer to eradicating this blight.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HOUGHTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to also thank various individuals. Obviously, I 
thank the gentleman from California (Mr. Matsui). I would like to thank 
the gentleman from New York (Mr. Rangel) on the other side.
  I would like to thank particularly the gentleman from Virginia (Mr. 
Wolf) on this side. I think the gentleman from Virginia (Mr. Wolf) and 
the gentleman from Ohio (Mr. Hall) are an absolutely lethal one-two 
punch. They are terrific, and they have done an absolutely fabulous job 
in this.
  Let me talk a little bit about this bill. I may be redundant, but I 
would like to express my own feelings.
  This is a bill which was drafted by a variety of us, and the USTR and 
the State Department also agrees with it. It authorizes the President, 
as has been said earlier, to ban all rough diamonds from any country 
that has not made an effort to control the trade in conflict, or, as we 
call them, blood diamonds.
  This bill, H.R. 2722, gives the administration the authority to ban 
the import of these diamonds. This would go

[[Page 23043]]

a long way to help end the international traffic of blood diamonds 
which are responsible for really three things: first of all, strong 
rebel activity in Africa, primarily Sierra Leone, Angola, and the 
Congo; secondly, horrendous human rights atrocities in these countries; 
and third, also, funding of terrorists and other illegal activities, 
such as the al-Qaeda terror network.
  The bill gives plenty of flexibility to the administration to use 
diplomatic avenues to address the problem before outright banning all 
diamonds from the country. It also protects the legitimate diamond 
trade, ensuring that countries such as South Africa and Botswana, 
Belgium, and Israel are not adversely affected.
  The bill also defers to the so-called Kimberley process, which is a 
process that is working on the implementation of the system of 
standards and controls which are currently developed in these 
multilateral negotiations. It does not adopt a system or otherwise 
undermine any of those negotiations that are going on.
  Most importantly, in the Committee on Ways and Means the bill remains 
consistent with the international trade obligations.
  There are so many people to thank, and a lot of them have already 
been thanked. Others will be thanked later on. This is a good bill. We 
hope that it is passed today and accepted by the Senate so the 
President can sign it before the end of the year.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield 5 minutes to the gentleman from Ohio 
(Mr. Hall).
  Mr. HALL of Ohio. Mr. Speaker, I thank the gentleman for yielding me 
the time.
  Mr. Speaker, this bill has been a long time in coming. I remember 
when the gentleman from Virginia (Mr. Wolf) and I went to Sierra Leone. 
We have visited many difficult places in Africa and Asia, but I 
remember especially the time we went to Sierra Leone almost 2 years ago 
to this week.
  There we saw just hundreds of thousands of people that were just not 
only destroyed, maimed, run off their homes and places where they 
needed to grow the crops, but it is happening all over parts of West 
Africa: Angola, Sierra Leone, the Congo.
  What people are doing is taking these diamonds, they call them 
conflict diamonds or blood diamonds, and then they seize them and use 
them to buy arms and goods and services and training and drugs. Then 
they terrorize whole countries and populations. We have even found in 
the last few weeks that a lot of this money has gone into the terrorist 
association of bin Laden.
  What this bill is all about, really, is very simple: It is about 
saving lives. It is about drying up civil war. It is about drying up 
the problems that come with trading with conflict diamonds here in the 
United States.
  Why is this important to us? Why should we even care about it? What 
does it have to do with us in the United States?
  Well, it has a lot to do with us. We buy somewhere between 60 and 65 
percent of all the diamonds in the world every year. So people sitting 
in Dayton, Ohio, or Boise, Idaho, they can do something about it 
because they do not have to buy diamonds certainly that are blood 
diamonds or conflict diamonds, but they can be careful.
  But because we did not have any system of regulations or rules, we 
have not had a law. It is just like the shoes that we wear today: We 
know exactly where they came from, who made them; the piece of cheese 
we eat tonight, we know exactly where the cheese came from. Maybe we 
will have a glass of wine, and we will know exactly where it came from; 
the suits on our backs, the ties. But with diamonds, we have no idea 
where they came from. There is no system, no regulation, and there is 
no certification.
  That is what this bill does, for the first time. It gives the 
President broad powers, and it gives our Customs broad powers. There is 
a program and they have to be certified. They have to be transparent. 
They have to come from a country. It has to be a legitimate trade.
  This bill sets up the vehicle of the Kimberley process, which 
involves 30 or 40 nations, and I think they will get a lot of direction 
out of this bill. I think it is very important that we pass this.
  I want to thank the gentleman from Virginia (Mr. Wolf), who has been 
a great partner, a good friend, and has worked very hard on this. He 
has been a driving force behind it.
  I thank the gentleman from New York (Mr. Houghton), who has been 
wonderful in the Committee on Ways and Means; the gentleman from 
California (Mr. Thomas) and his staff; certainly the gentleman from New 
York (Mr. Rangel); the gentlewoman from Georgia (Ms. McKinney), and 
many others; especially Senator Durbin, Senator DeWine, Senator 
Feingold. They have been great on this issue. This has been a 
bipartisan effort.
  This bill will go a long way in saving lives. That is a pretty nice 
thing to say, to say that we can pass a piece of legislation here that 
will go a long way to end the killing and maiming and the terrorist 
activity and to dry up their sources of funds by passing this 
legislation.
  So I am very thankful to have a chance to speak on it, to be a 
supporter of this, and to be a sponsor, along with my friends. I urge 
the House to pass this bill.
  Mr. Speaker, today, Congress begins to put the muscle of the world's 
biggest market into efforts to end the scourge of conflict diamonds. 
These are gems that fund wars in Africa--and create the lawless chaos 
that terrorists need to build their operations. The Clean Diamond Trade 
Act will give the President ample authority to begin to right some 
terrible wrongs:
  1. The President can use this legislation as a scalpel, to go after 
countries and companies who have let this problem fester. They are a 
cancer that threatens the legitimate trade in diamonds and the 
countries that depend on it.
  2. He can use it as a spotlight, to name and shame countries that are 
doing too little to end this trade.
  3. He can use it as a pair of spurs, to press for an effective 
international system of controls. And I hope the House of 
Representatives' action--coming as Kimberley Process participants 
conclude their work later this week--sends a clear signal that our 
nation will insist on a system that's up to any challenge mounted by 
this blood trade.
  4. And, because this bill takes effect the day the President signs 
it, he can use it as a cannon--to fire a shot across the bow of those 
who shrug their shoulders; who say Africa's problems are not ours; who 
would let problems fester until they become even bigger problems for 
innocent people there, and in America.
  The strength of this bill rests on two pillars. First, it presses 
countries to devise a system that helps rein in irresponsible traders 
and corrupt officials. This effort will link African and other 
producing countries with those who reap tremendous profits from this 
product. In turn, I hope this will enlist more countries and companies 
in work for peace in places that have been wracked by wars over these 
diamonds.
  Second, this bill leverages the diamond industry's expertise and 
resources. For the most part, this is an honorable trade that produces 
something many Americans treasure. This bill gives it a way to help 
safeguard diamonds' image from being soiled by bloodshed--and imposes a 
responsibility to do more to stop the smuggling and corruption that are 
at the heart of this matter.
  The compromise that makes House action today possible is not perfect. 
I wish the bill forced the President to act, instead of merely giving 
him needed authority and new tools. I particularly wish it treated all 
diamonds the same--whether they are the rough diamonds that have been 
the focus of UN work, or polished diamonds and jewelry. Diamonds are 
jewelry; there is no other end use for gem-quality diamonds. And making 
sure the finished products don't become a loophole will require 
continued vigilance by everyone who wants to sever funding for wars and 
misery.
  In my judgment, this bill gets us 85 percent of the way. Seeing that 
it is implemented fully, including by watching the trade in polished 
diamonds and jewelry closely, is the next phase of work on conflict 
diamonds. I am confident that the coalition behind the Clean Diamond 
Trade Act will continue this effort, and I hope they will return to win 
passage of any further legislation needed.
  But our ultimate success or failure won't be measured in Washington. 
The value of this work and what follows instead will be determined by 
its role in transforming diamonds

[[Page 23044]]

into the blessing they ought to be. Until people whose land produces 
diamonds see them improve the well-being of their children and 
strengthen their communities . . . no U.S. law will lift the curse of 
conflict diamonds permanently.
  That means that--even after this bill becomes law--the biggest job is 
still ahead of us. It isn't one we can leave to international 
agreements or diligent customs enforcement. It's not something American 
consumers or Africans can do on their own. Nor can governments, 
industry, or civil society complete this task by working alone.
  Today, everyone who cares about severing the funding for Africa's 
wars, can be proud of the few steps forward that House action 
represents. Together, we can complete this marathon.
  To thank everyone who has worked toward this goal would be almost 
impossible. No list can begin anywhere but with Frank Wolf, who began 
working with me on conflict diamonds two years ago. Soon after his name 
should come those on the Ways and Means Committee, including Mr. Rangel 
and Mr. Houghton, who have been invaluable allies. These sponsors, and 
their aides--Chris Santora, Bob Van Wicklin, and Viji Rangaswami--have 
done considerable work, and I am indebted to them. I also appreciate 
the extra miles that Chairman Thomas, and Angela Ellard and David 
Kavanaugh of his staff, travelled to help us reach a compromise with 
the Administration. And Senators Durbin, DeWine and Feingold have been 
terrific partners in this work; continued work on this bill is in good 
hands.
  The humanitarian and human rights groups that have been our 
determined allies for the past 18 months, including Amnesty 
International, Oxfam America, Physicians for Human Rights, the 
Religious Action Center for Reform Judaism, World Relief, and World 
Vision, deserve special thanks. These organizations have been tireless 
advocates. I wish today's bill did everything we'd both hoped, but I 
appreciate their support.
  Leaders of the diamond and jewelry industries, and the very effective 
team they fielded to win passage of our bill, made a critical 
contribution too. In particular, I want to thank Eli Izhakoff, Matt 
Runci, and Cecilia Gardner for their leadership and commitment; and 
Bruce Wilson and Warren Connelly--who ably assisted them and whose 
unflagging determination was essential to clearing this first 
legislative hurdle. I also appreciate the efforts of Greg Gill and his 
colleagues.
  Finally, there are a countless number of ``ordinary'' people whose 
interest in this work has kept up the pressure we needed to finish this 
work. They, and the journalists who have responded to this keen public 
interest with extraordinary dedication to tell a complex story, should 
be proud of their efforts.
  Mr. HOUGHTON. Mr. Speaker, I yield 5 minutes to the gentleman from 
Virginia (Mr. Wolf).
  Mr. WOLF. Mr. Speaker, I want to first begin by thanking the 
gentleman from Ohio (Mr. Hall) and acknowledging the work that he has 
done on this issue in bringing this bill, the Clean Diamond Trade Act, 
to the floor today.
  The gentleman from Ohio has consistently, over the time that I have 
been in the Congress, distinguished himself in this body as a Member 
who speaks on behalf of the world's most vulnerable, and I am proud to 
have him as a colleague and as a good, good friend.
  I also want to thank his staff, and Deborah DeYoung and Chris Santora 
of my staff, and all these staff members who have worked on this; and 
also the gentleman from New York (Mr. Houghton) for coming alongside of 
us from the Committee on Ways and Means; the gentleman from New York 
(Mr. Rangel) and his staff; and the gentleman from California (Mr. 
Thomas), who back there that night gave us the commitment that he would 
bring this bill up. I would thank him for that.
  I also thank the gentleman from Illinois (Mr. Hastert) and his staff 
member, Chris Walker, for helping to work the bill through the process.
  We also want to thank the NGOs that have been involved in the 
industry for participants. Over 2 years ago, the gentleman from Ohio 
(Mr. Hall) convinced me to travel to Sierra Leone with him.
  While there, we saw the terrible suffering of the civilian population 
that endured years of civil war which was funded by the diamond trade. 
We saw children as young as 2, this young girl here, with arms and legs 
chopped off.
  This picture that I purposely brought with me on the floor today was 
taken by my former chief of staff, Charlie White, a retired Navy 
captain who had been with me since 1984. Charlie went with us on that 
trip and took this photograph, along with many other pictures that were 
used to show people the terrible plight of the citizens of Sierra 
Leone.
  Charlie was in serious pain. We thought he had a back problem. He was 
suffering and taking four to six Advil every 2 and 3 hours. When we 
returned to the United States, shortly thereafter, he was diagnosed 
with terminal cancer, and he died 7 months later, in the summer of 
2000.
  This issue had a special place in his heart, and I just wanted to 
bring the pictures to demonstrate that one person, one staff person, 
made a tremendous difference while he was suffering pain, and he helped 
bring this issue to the Congress.
  Since returning from Sierra Leone, we have worked with the gentleman 
from Ohio (Mr. Hall), under his leadership, to bring this issue, which, 
as he said, will save a lot of people and a lot of lives in Sierra 
Leone, in the Congo, in Angola, and many other places.
  Throughout this period of time in Sierra Leone, in Angola, and in 
Congo, over 2 million people have died and 6.5 million people have been 
driven from their homes, women and children and innocent citizens who 
live in these countries, who have been subject to brutal amputations, 
rape, and sexual abuse, which really has created the words that we 
hear: the generation of children soldiers.
  Recently, we learned of another disturbing development involving 
conflict diamonds. Major media organizations, including the Washington 
Post, have reported direct connections between Sierra Leone rebel 
diamonds and the al-Qaeda terrorist network.
  Addressing the issue of conflict diamonds is not only essential for 
those living in Africa, but for our national security.
  I want to thank today Douglas Farrah of the Washington Post. His 
reporting of this issue several weeks ago brought additional momentum 
to that, to force it to be addressed here in the Congress. His exposure 
of the connection to terrorism, the connection of Liberian President 
Charles Taylor and the network that funnels rebel diamonds into 
terrorist group coffers, helped reignite this issue.
  I would urge our Secretary of State to call our ambassador and tell 
him to go and see Charles Taylor to say that if anything happens to 
Douglas Farrah, who is the reporter, because his life has been 
threatened, our government will hold Charles Taylor and his government 
accountable if anything happens to this Washington Post reporter.
  Mr. Speaker, today, Congress is taking the first step to stop the 
trade in blood diamonds by passing the Clean Diamonds Trade Act. This 
bill gives the President the necessary authority to take steps against 
those who are trying to export these blood diamonds into the United 
States.
  I look forward to passage of the Clean Diamonds Trade Act in the 
House so we can move the bill to the Senate and onto the President's 
desk before Congress adjourns.
  The Clean Diamonds Trade Act gives the President the ability to 
single out countries that are not taking effective measures to stop 
conflict diamonds and presses countries to devise a system that helps 
rein in irresponsible traders and corrupt officials.
  As Congressman Hall mentioned, we believe this legislation will give 
a boost to the on-going international negotiations known as the 
``Kimberly Process'' to address conflict diamonds.
  I will continue to work with the Administration, and am hopeful it 
will take a more assertive role in facilitating the creation of an 
effective international system. In the long run, this is a global 
problem and as the world's largest diamond consumer we have a 
responsibility to take a leadership role in addressing this problem on 
the international stage.
  Finally, I want members of this body to know something else that is 
significant about passage of this legislation. The small west-African 
country of Sierra Leone, which will benefit significantly from the 
efforts to eliminate conflict diamonds, holds a special place in 
American history. In 1750 John Newton was a slave trader who worked and 
lived out of Sierra Leone. He was known as a cruel man.

[[Page 23045]]

One night as a storm raged off the coast of Sierra Leone, his ship was 
almost lost. He prayed that if only salvation would come to ``a wretch 
like me,'' he would leave the slave trade and work towards its 
abolition. He was rescued and changed his life. He became an ardent 
abolitionist and a Methodist minister. Sierra Leone, where John Newton 
worked in the evil institution of slavery, was also where he changed 
his life and turned to good, commemorated by his greatest legacy, the 
song ``Amazing Grace.''
  Mr. Speaker, there is much more that I could say, but with that I 
will just end by saying that I think this is a good opportunity to save 
lives, to make a big difference.
  In closing, I want to thank the gentleman from Ohio (Mr. Hall) for 
this issue, and on hunger and civil rights; the gentleman from New York 
(Mr. Houghton) for helping us out, and all the other Members on the 
Senate side who are helping.
  Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the distinguished 
gentlewoman from North Carolina (Mrs. Clayton).
  Mrs. CLAYTON. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I am pleased to rise in support of H.R. 2722. This is 
good legislation whose time is long past due.
  I want to recognize the leadership of the gentleman from Ohio (Mr. 
Hall) and that of the gentleman from Virginia (Mr. Wolf), and also to 
compliment the gentleman from New York (Mr. Houghton) for his 
leadership in the Committee on Ways and Means, and the gentleman from 
California (Mr. Matsui) for his leadership in the Committee on Ways and 
Means.
  I participated, along with five other Members, going to Botswana in a 
delegation led by the gentleman from New Jersey (Mr. Payne). I rise in 
support of this legislation, to also see how we could indeed rule out 
the conflict diamonds and this trade system that financed conflict and 
the great devastation that is happening.
  We saw also, in that process, how legitimate diamonds were being used 
in Botswana and other countries in that area. I was pleased that 
Botswana clarified to us how diamonds could be used, clean diamonds, in 
a way that we could protect that democracy, undergird that development 
in that country.
  So I am pleased that this legislation indeed is focused on ending the 
financing of conflicts in Africa and other parts of the world using the 
sales of diamonds. Also, it protects the legitimacy of diamonds, where 
it is appropriate.
  Those who accompanied us on that particular CODEL were the gentleman 
from New York (Mr. Rangel), the gentleman from Louisiana (Mr. 
Jefferson), the gentlewoman from Indiana (Ms. Carson), and the 
gentlewoman from California (Ms. Lee), and others were also part of 
that delegation.
  In Botswana, we met with the President. Since then, the President has 
come to this country because he, too, wants a distinction to be made 
between clean diamonds and conflict diamonds.
  We met with the administration. He pledged his support. In fact, he 
has also been part of the U.N., writing part of their resolution, and 
made a statement to that effect, that they wanted to be part of a clean 
diamond industry, and also wanted to be part of the force that would 
make that distinction.
  I raise that because it is important, Mr. Speaker. The good intention 
of this legislation also acknowledges those people who are following 
the law, and indeed, trying to do the right thing.
  Again, I want to compliment everyone involved in this. Again, this 
legislation is long overdue. It has been brought to bear at a time when 
we know that not only the conflict in Africa but now conflict in other 
parts of the world is being financed by diamonds. So hopefully this 
legislation would not only curtail, as the gentleman from Virginia (Mr. 
Wolf) said, the loss of lives, the lives of thousands of persons, not 
only killing them but killing in other parts of the country.
  I want to thank all the persons involved in this, and I urge my 
colleagues to pass this legislation that we all should be proud of.

                              {time}  1745

  Mr. HOUGHTON. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman 
from Illinois (Mr. Crane).
  Mr. CRANE. Mr. Speaker, I thank the gentleman from New York (Mr. 
Houghton) for yielding me time.
  This year we had a hearing to take testimony from witnesses about the 
state of affairs in Africa, and we all acknowledged the tragic facts of 
the illicit diamond trade and how it continues to fund rebel wars and 
poverty in Africa.
  As I described at the hearing, we are looking at meaningful 
legislation that will help the administration tackle this problem, 
while not hindering the ongoing international negotiations that are 
supposed to conclude this year.
  In this delicate time of international diplomacy we must be 
especially careful not to disrupt the administration's efforts, however 
well intentioned we may be. The suspension bill H.R. 2722 is an 
effective and balanced way to get at these conflict diamonds.
  The gentleman from New York (Mr. Houghton) and the administration 
have crafted a bill authorizing the President to ban all diamonds from 
any country that does not have effective measures against the trade in 
conflict diamonds. I want to commend both for their leadership and 
flexibility in this matter.
  In the last 2 weeks, many provisions sought by the gentleman from 
Virginia (Mr. Wolf) and the gentleman from Ohio (Mr. Hall) were added, 
including a non-circumvention clause for polished diamonds and diamond 
jewelry, more reporting from the government, and an enhanced 
description of what constitutes effective measures for diamond trading 
countries.
  Some people say this does not go far enough, but I want to point out 
that the bar we set is already extremely high. A country like Botswana 
that relies upon the legitimate diamond trade for its economy must 
implement the United Nations' resolutions or the eventual international 
agreement or could be subject to a complete ban on all of its diamond 
exports. However, some people want to go further and say that all 
imports must be cut off from a country like Botswana in that situation. 
I think that would be extreme and tantamount to shutting down the 
entire world diamond trade.
  To effectively end trade in conflict diamonds, the countries 
exporting and importing rough stones in particular must work together 
to make sure that these diamonds do not have a market so that conflict 
diamond peddlers cannot stay in business. A bill that mandates the 
shutdown of the diamond trade until every country can be certified by 
the United States is a unilateral solution that will not work. 
Legitimate diamond trading countries will have no incentive to complete 
their negotiations at Kimberley. The let the negotiations process 
finish. Next year we can evaluate how that process worked and whether 
further tools can be enacted to complement what we enact today.
  I urge my colleagues to support this legislation.
  Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the gentleman from 
Arkansas (Mr. Snyder).
  Mr. SNYDER. Mr. Speaker, I was fortunate to be a doctor in the early 
1980s in Sierra Leone in West Africa. At that time, Sierra Leone was 
poor. It was underdeveloped. There was a life expectancy of 42 years, 
but it was not a violent place to be. In this last decade we have seen 
the world's most brutal civil war, of which has been spoken earlier 
here today.
  In April of this year, I visited Sierra Leone and was taken to the 
site of the old hospital that I had worked at, Serabu Hospital near Bo 
in Sierra Leone. It was burned to the ground by the rebels. It had a 
wonderful nursing school, a wonderful hospital. It did a lot of great 
outpatient work. It provided a secondary school for the local villagers 
and the employees. It was completely destroyed, nothing there but 
shells of the old buildings.
  I do not know how to account for the dramatic change from the 
peaceful but poor country I had seen in the early 1980s to what has 
gone on in Sierra Leone in the last decade. The question

[[Page 23046]]

is one of what spawns evil, which I do not know if any of us know those 
answers.
  Evil requires nourishment, and the diamonds of Sierra Leone have been 
the financial support and perhaps the motive for this brutal civil war. 
Now we are learning in the recent weeks of the potential involvement of 
al Qaeda and Osama bin Laden in the diamonds of Sierra Leone as a 
source of their funding.
  To neglect evil is to strengthen evil. We in the world should have 
gotten a handle on these diamonds, on these blood diamonds years ago, 
even though it seemed remote from the United States and the western 
world. But better today than more years and more deaths from now. I 
thank the sponsors on both sides for bringing forth this legislation 
today.
  Mr. HOUGHTON. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Royce).
  Mr. ROYCE. Mr. Speaker, as a co-sponsor I rise in strong support.
  Throughout Africa we are seeing natural resources being misused and 
fueling conflict; and this is the case with diamonds in Sierra Leone, 
timber in Liberia, cobalt in the Democratic Republic of Congo. In many 
places on the continents, natural resources are bringing nothing but 
misery to the African people.
  We listened to the testimony of little children missing their arms 
and in some cases without legs, testifying about their ordeal, 
representing over 5,000 children in Freetown alone, the victims of the 
Revolutionary United Front, the victims of men like Foday Sanko and 
Charles Taylor, both enriched by blood diamonds.
  This legislation promises to help to ensure that diamonds do not fuel 
conflict. It is an important step. The international community needs to 
recognize its responsibility to not be party to the misuse of diamonds 
and other natural resources.
  I would like to commend the Members who have worked hard on this 
legislation and especially to commend the gentleman from Ohio (Mr. 
Hall) and the gentleman from Virginia (Mr. Wolf) and the gentleman from 
New York (Mr. Houghton), because they have worked tirelessly in trying 
to bring the issue of conflict diamonds before this body. They have 
worked hard to reach consensus with the administration, which is what 
this bill represents.
  But let me say that after passage of this bill we still have to 
address as an institution the fact that there are heads of state in the 
region, like Charles Taylor of Liberia, who have enriched themselves, 
who have maintained their power through the use of blood diamonds, and 
there should be an accounting. There should be justice on behalf of 
those child victims that were, frankly, sacrificed, who lost their 
limbs, and in many cases lost their lives as part of this strategy to 
create wealth for a few men in this part of the world.
  I do want to commend all of those who worked so hard on this, the 
gentleman from Ohio (Mr. Hall), the gentleman from New York (Mr. 
Houghton), the gentleman from Virginia (Mr. Wolf). I thank them so 
much.
  Mr. MATSUI. Mr. Speaker, I yield 5 minutes to the distinguished 
gentleman from Michigan (Mr. Levin), the ranking member on the 
Subcommittee on Trade.
  Mr. LEVIN. Mr. Speaker, I want to start off by just saying a word to 
the gentleman from Ohio (Mr. Hall) and to the gentleman from Virginia 
(Mr. Wolf) and to the gentleman from New York (Mr. Houghton), to all of 
my colleagues, for their work on this. I am not sure how many 
constituents have ever written to them about this, but they felt there 
was a need here, a deep human need, and the three of them and others 
led the way.
  The gentleman from California (Mr. Matsui) and I and the gentleman 
from New York (Mr. Rangel) are proud to join with the gentleman from 
California (Mr. Thomas) and others in doing what we said we would do 
and that is to get this legislation to the floor.
  I rise in strong support of this legislation because I think it will 
help ensure that diamonds sold in our country have not funded civil war 
in West Africa or funded agents of terrorism. It is a good first step 
towards addressing a serious issue.
  As mentioned, the countries that have been named, rebel groups have 
been funding their activities through trade in diamonds. Hundreds of 
thousands of people, I was asking Viji Rangaswami, who has worked so 
hard on this, do we know how many of the hundreds of thousands of 
people have died? We do not, but it is many. Many have died from the 
activities of these groups. Many millions more have been displaced, and 
there have been the worst kinds of atrocities.
  As has been cited earlier, it has been reported recently that al 
Qaeda has reaped millions of dollars from the illicit sale of diamonds. 
We have to put a stop to this.
  This bill will allow the President to ban the import of diamonds from 
countries that are not taking ``effective measures'' to stop trade in 
conflict diamonds. The bill is supportive of international efforts to 
end trade in conflict diamonds. It abides by criteria derived from the 
U.N. Security Council resolutions.
  This week the so-called Kimberley process is moving forward, and I 
believe this bill will provide important momentum to this process. It 
is consistent with our international trade obligations.
  This issue is a demonstration of the globalized and interconnected 
world we live in, where the purchase of an engagement ring in one 
country can contribute to civil war in another. It shows the need, as I 
see it, to shape the rules of trade. Trade is not a panacea. It does 
not resolve all problems and sometimes, as shown in this bill, 
unfettered trade creates new problems.
  By shaping these rules as we do today, and this is an effort to shape 
the rules of trade, we help ensure that American consumers, that our 
consumers are not unwittingly trading lower prices for human rights 
abuses abroad, and we help ensure that the benefits of trade flow to 
the countries involved in legitimate diamond trade rather than rebels 
and terrorists.
  So I close, again, to say to the leaders of this effort that I hope 
they are proud of it. It may not score lots of political points, but it 
is going to save human lives, and in that sense I think the people who 
have worked on this have discharged their responsibilities with the 
highest honor.
  I am glad, in a small way, with my colleagues, with the gentleman 
from California (Mr. Matsui) and others on the committee, to join them. 
I hope we will overwhelmingly, indeed unanimously, pass this 
legislation.
  Mr. HOUGHTON. Mr. Speaker, I yield 4 minutes to the gentleman from 
Michigan (Mr. Ehlers).
  Mr. EHLERS. Mr. Speaker, I thank the gentleman from New York (Mr. 
Houghton) for yielding me the time, and I commend him for introducing 
this bill and especially commend the gentleman from Ohio (Mr. Hall), 
the gentleman from Virginia (Mr. Wolf) for their hard work on it for a 
number of years, and I am pleased to have been a cosponsor of each and 
every bill they have introduced on this.
  My acquaintance with the problem goes back some years, and my 
interest with Sierra Leone goes back to 1978 when I chaired a world 
hunger task force for the denomination of which I am a member, and 
since I am results oriented, I insisted that we not only prepare a 
report but that we come up with an action plan and that we adopt a 
country where our small denomination could have a major impact.
  We adopted Sierra Leone in 1978. Our church, through its missionary 
efforts and through its relief efforts, has been active there ever 
since, and I have some friends who have served there for a number of 
years.
  The news I have received during the past decade was intensely 
dismaying. The atrocities that were taking place, the difficulties that 
were developing, the rebels who were acting as if they were political 
rebels but, in fact, were bandits, they were simply seeking to get the 
natural resources of that country, and they did not care what they had 
to do to get it.

[[Page 23047]]

  I have to tell my colleagues, it is heartbreaking to meet a 4-year 
old child whose arms were amputated when she was two because she was 
not worth the price of a bullet. The soldiers had killed her parents, 
killed many people in the room, and the soldier said, What should I do 
about her? The commander said, She is not worth a bullet; just cut her 
arms off.
  Fortunately, she survived but handicapped for life, and I could 
repeat this story over and over: Incredible cruelty and a desire to get 
the diamonds and to get the power that they represent.
  Just a few weeks ago we discover that Osama bin Laden is buying the 
diamonds from Sierra Leone because he can no longer ship money across 
borders, and so he has decided to buy diamonds because they are easier 
to ship across borders and finance his operations. It is a problem that 
has been there for a long time, but a solution has not been forthcoming 
as it should have been.
  I commend some of the individuals I have worked with on the African 
desk in the State Department over the past few years. They have been 
earnest, and they sincerely wanted to resolve the problem, but, 
unfortunately, the upper levels of the State Department over the past 
several years have simply not been willing to spend the political 
capital to do that.
  I am pleased that now we have worked out an agreement where we can 
make a difference, that we will no longer be encouraging the chopping 
off of arms and hands and limbs, that we will not sanction the 
arbitrary killing of citizens of Sierra Leone, as happened to a friend 
of a friend there.

                              {time}  1800

  A leader in the church walking down the street was shot by a soldier. 
When they asked why he did it, he said, I haven't killed anyone for 
about a week. We thought it was time to kill someone else. We cannot 
tolerate that type of behavior on this planet. We have to ensure that 
we do not encourage it.
  This is one bill that will take strong steps to ensure that there 
will not be any profit in the actions they have taken, and we hope that 
with the cutback in Charles Taylor's actions that, above all, we may 
have peace in the beautiful land of Sierra Leone.
  Mr. MATSUI. Mr. Speaker, may I inquire how much time both sides have?
  The SPEAKER pro tempore (Mr. Stearns). The gentleman from California 
(Mr. Matsui) has 5 minutes remaining, and the gentleman from New York 
(Mr. Houghton) has 3 minutes remaining.
  Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the 
gentleman from Ohio (Mr. Hall) to conclude.
  Mr. HALL of Ohio. Mr. Speaker, I thank the gentleman for yielding me 
this time.
  I was listening to what the gentleman from Michigan (Mr. Levin) said 
about sometimes on bills like this, legislation like this, we do not 
get a lot of publicity, and that is true. It is interesting, our 
profession, because sometimes when we do not work too hard on 
something, we get a bunch of press, a lot of publicity; and we do not 
really deserve it. But on things we really work hard on, sometimes it 
is very, very hard to get a mention.
  This is one of these kinds of bills where it does not really matter 
whether we get a mention or not; but what matters is, especially to 
those Members that are very close to this issue, that when we go home 
tonight, we can say to ourselves that it has been a good day. It is a 
good piece of legislation, and I am proud of it. It is not a perfect 
bill. We got about 80 percent of what we really wanted. We never get 
100 percent around here, but it is a good bill.
  We also want to thank the NGOs. They have been wonderful, and we have 
had 100 of the top human rights' groups in the world firmly behind this 
bill. All the way up till today they have been absolutely wonderful. A 
lot of them are disappointed in the end, but many of them are very, 
very supportive. Amnesty International, Physicians for Human Rights, 
World Vision. They have been just tremendous in their support.
  I want to thank Matt Runci, Jewelers of America, World Diamond 
Council. When they came to our support this year, and we were not 
always together, they added a lot of clout and credibility to our 
cause.
  I want to thank Deborah DeYoung on my staff, who worked very hard in 
negotiating and working behind the scenes. She has really kept her eye 
on this piece of legislation.
  This is a good bill. It is a good bill for legitimate businesses. 
Because the way it was looking for diamonds, there were no good 
diamonds. But the fact is that is not true. Most of the businesses are 
honorable and good. Most of the countries that deal in diamonds are 
very legitimate. We are talking about 5 to 15 percent of the diamonds, 
which we call conflict diamonds, or blood diamonds, that find their way 
into this country that are not good and that are causing death. So that 
is what we have been after, and we think that this will help the 
legitimate businesses in the long run.
  We are going to regulate diamonds for the first time, and they are 
going to have to be transparent. They will have to be certified. And if 
they do not come in in that way, they will not be accepted in this 
country. This bill takes effect immediately when the President signs 
it.
  It is not a perfect bill, it is a bill that will probably not get a 
lot of publicity, but when we go home tonight, we can say this has been 
a good day. This is a bill that will save some lives. That is not all 
bad.
  Mr. HOUGHTON. Mr. Speaker, I yield myself the remainder of my time.
  Mr. Speaker, the gentleman from Ohio (Mr. Hall), the gentleman from 
California (Mr. Matsui), and the gentleman from Virginia (Mr. Wolf) 
have said everything. It is a good bill, it is a timely bill, and it is 
a needed bill. I wholeheartedly support this.
  Ms. ROYBAL-ALLARD. Mr. Speaker, I rise today to join my colleagues in 
support of H.R. 2722, the Clean Diamonds Act, to ensure that America, 
the largest importer of diamonds in the world, helps to eradicate the 
purchase and sale of illicit diamonds around the world.
  For the last eight years, a rebel group known as the Revolutionary 
United Front (RUF) has used the illegal trade and trafficking of 
diamonds to fund a civil war in Sierra Leone. This brutal war has 
garnered the attention of numerous international human rights groups 
for its incessant violence and human rights abuses. An estimated 12,000 
children have been separated from their families for the sole purpose 
of becoming soldiers and diamond miners. Women and girls are raped or 
used as sexual slaves by the top commanders of the rebel army. Boys and 
girls alike live in fear of having one of their limbs hacked off with 
machetes--one of the most notable forms of torture used by the rebel 
groups. These and countless other unscrupulous acts have severely 
destabilized Sierra Leone and other African countries, including 
Angola, the Congo and Liberia.
  To make matters worse, recently we have learned that Osama bin 
Laden's al Qaeda network is also linked financially with the diamond 
trade in Sierra Leone. The same revenue collected by conflict diamonds 
to fund wars and illegal weapon sales in Africa is being used by the 
terrorist network, which carried out the unconscionable attacks on 
America on September 11th.
  The violence and suffering fueled by the trade and sale of diamonds 
has been carried on too long. America must do its part to help end 
these atrocities once and for all.
  First and most importantly, we as a nation need to make more informed 
purchasing decisions about the diamonds we buy. Just as we have taken 
steps to eradicate slave labor in manufacturing sweatshops, we must 
guarantee that our demand for diamonds does not contribute to a cruel 
and destructive war against innocent children and families. We must ask 
questions and seek assurance from our retailers that the diamonds we 
buy this holiday season and beyond are in no way connected to this 
illicit trade.
  Second, even the most discerning consumers can unknowingly and 
unwillingly purchase diamonds illegally traded on the world market. 
Therefore, we need to find a way to keep these conflict diamonds out of 
our stores.
  The Clean Diamonds Act will do just that by authorizing the President 
to prohibit the importation of diamonds from countries that are not 
willing to adopt an international diamond certification system that 
will track diamonds from the point of extraction to retail sale. Under 
this international system, exporting countries would

[[Page 23048]]

be required to provide a certificate of origin and authenticity, 
indicating that their diamonds were not mined or laundered by rebel 
groups in Africa. America buyers could then shop with confidence, 
knowing that their diamond purchases were in no way contributing to 
civil war in Africa or terrorist activities against the United States 
and its allies.
  Mr. Speaker, just as we have all united to put an end to the 
terrorist networks that exist around the world, we should also unite to 
put an end to the trafficking of these conflict diamonds and the cycle 
of violence they perpetuate in Africa and in our own backyard. I urge 
my colleagues to join me in support of H.R. 2722.
  Mr. GILMAN. Mr. Speaker, I rise to voice my strong support for H.R. 
2722, the Clean Diamonds Trade Act, which implements a system of 
requirements on the importation of diamonds. This Act combats the 
contribution of ``conflict diamonds'' to the continuation of violence 
in West Africa and other developing nations. The situation in West 
Africa is one of the great human tragedies of the modern age.
  The Clean Diamonds Trade Act will help end the international trade in 
conflict diamonds, the proceeds from which are being used to wage war 
and terrorize innocent people. The failure to enact this legislation 
allows rebel groups in Africa to continue to profit from their illegal 
diamond sales. Furthermore, recent press reports indicate that the al 
Qaeda terrorist network has been involved in the illicit diamond trade, 
making the Clean Diamonds Trade Act an essential weapon in America's 
war on terrorism.
  Accordingly, I strongly support H.R. 2722.
  Mr. RUSH. Mr. Speaker, I rise in support of H.R. 2722, the Clean 
Diamond Trade Act. For several years, rebel groups in sub-Saharan 
Africa have been using diamonds extracted from illegally controlled 
mines to finance civil war activities that have displaced and killed 
several million African people, including innocent young children. The 
United States is one of the largest consumers of diamonds. Therefore, 
the United States, like it or not, indirectly contributed to the 
current situation in Africa. It is, thus, imperative that Congress pass 
meaningful legislation that will clean up the diamond conflict. H.R. 
2722, will allow the importation of diamonds and diamond jewelry into 
the U.S. only from countries that have adopted effective controls on 
the import and export of rough diamonds. This alone would be a great 
incentive for other nations to take appropriate action within an 
acceptable timetable. The legislation would also encourage the 
President to negotiate an international agreement leading to a global 
control system. This broadly supported legislation demonstrates the 
United States' commitment to curbing the trade in ``conflict 
diamonds''. We have a moral obligation and responsibility to help stop 
the violence, the brutality, the needless killing of innocent lives. I 
urge my colleagues on both sides of the aisle to support this much 
needed legislation.
  Mr. RANGEL. Mr. Speaker, I rise today in support of important 
legislation, H. R. 2722, the Clean Diamonds Trade Act. First and 
foremost, I want to take this opportunity to thank Mr. Hall, Mr. 
Houghton, and Mr. Wolf for their tenacity and commitment in seeing this 
bill through. Each of you has helped keep the Congressional spotlight 
focused on the terrible toll trade in conflict diamonds has had on the 
people of sub-Saharan Africa while continuing to encourage 
international agreement through the Kimberly negotiating process. You 
have worked diligently and responsibly to address the concerns the 
Administration and Chairman Thomas raised. You have also worked to 
address concerns I initially had on the impact of rough diamond 
regulations on legitimate diamond trade in countries such as Botswana, 
Namibia, South Africa, and Tanzania.
  Now more than ever we need to ensure that the revenues from 
legitimate diamond trade with African countries such as Botswana, South 
Africa, Namibia, and others are used to build the economics and 
infrastructure of nations who support the Kimberly Process. Botswana, 
for example, through its legitimate and peaceful diamond trade, has 
successfully increased its average annual income from eighty dollars 
three decades ago to approximately three thousand six hundred dollars 
today. In addition, Botswana's diamond trade revenues account for 
three-fourths of all exports earnings, one-half of government revenues 
and one-third of its gross domestic product. Botswana's diamond 
revenues are used to build schools, hospitals, roads, bridges, homes, 
and offices.
  It is our duty as lawmakers to penalize those countries that fuel 
conflicts with diamond revenues, but is also our responsibility to 
protect those African nations that are using legitimate diamond trade 
revenues to strengthen their economies, educate their people, and to be 
good and responsible neighbors to other countries around the world.
  I want to thank the Bush Administration for its assistance and 
willingness to consult with us. I know that the Administration had 
reservations with the legislation, and appreciate the time it spent to 
work through those reservations and to develop a mutually acceptable 
response to the dilemma of addressing this problem legislatively while 
continuing to support the Kimberly Process. The bill before us today is 
a prime example of what can happen when Members on both sides of the 
aisle commit to work with each other and with the Administration to 
address matters which are critical not only to the American people but 
also to the entire international community. I only wish that the 
cooperation shown on this bill would carry forward to other pending 
legislative matters. The bill we are discussing today, the Clean 
Diamond Trade Act, sends an important message of support to a continent 
which has seen far more than its fair share of pain and suffering.
  It reflects a strong commitment to the ongoing international dialogue 
that is aimed at dealing with this difficult problem. As with all 
compromises, this bill does not have everything I would like to see in 
it. However, it is a significant step in the right direction.
  Passage of the Clean Diamond Trade Act will undercut a conflict 
diamond trade that has financed organizations that have killed several 
million people, driven millions more from their homes, and committed 
countless human rights abuses. The violent conflicts spurred on by 
these groups are impeding growth and development throughout sub-Saharan 
Africa. By stemming this illegal trade, we can remove a key barrier to 
progress and prosperity in these countries. If we pass this bill, we 
work to preserve the dignity of an entire industry, which can and 
should be a source of wealth for countries around the world.
  This piece of legislation and its provisions are very important to 
the Congressional Black Caucus members and other friends of Africa who 
are dedicated to stopping civil conflict which impedes development and 
who continue to work on increasing trade opportunities and promoting 
economic growth for African nations. Through this bill, we seek to 
promote legitimate diamond trade, allowing countries such as, South 
Africa, Namibia, and Botswana to continue to benefit from their rich 
natural resource endowment.
  I think it's particularly important that we are discussing this bill 
today, as negotiators from over thirty countries are gathered in 
Botswana as part of the Kimberley Process, an effort to develop 
international standards for certifying legitimate diamonds. If we pass 
this bill, we send a signal to the international community that we are 
engaged, that we take this issue seriously, and that we hope an 
international agreement can be reached soon that will bring us 
significantly closer to eradicating this blight.
  Mr. HOUGHTON. Mr. Speaker, 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. Houghton) that the House suspend the rules 
and pass the bill, H.R. 2722, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. MATSUI. Mr. 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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