[Congressional Record (Bound Edition), Volume 149 (2003), Part 7]
[House]
[Pages 8786-8793]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        CLEAN DIAMOND TRADE ACT

  Mr. CRANE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 1584) to implement effective measures to stop trade in conflict 
diamonds, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 1584

       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 and humanitarian advocates, the diamond 
     trade as represented by the World Diamond Council, and the 
     United States Government have been 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 Sierra Leone unless 
     the diamonds are controlled under specified certificate of 
     origin regimes and to prohibit absolutely 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 Sierra 
     Leone to those diamonds accompanied by specified certificates 
     of origin and fully prohibiting the importation of rough 
     diamonds from Liberia. 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.
       (9) The Interlaken Declaration on the Kimberley Process 
     Certification Scheme for Rough Diamonds of November 5, 2002, 
     states that Participants will ensure that measures taken to 
     implement the Kimberley Process Certification Scheme for 
     Rough Diamonds will be consistent with international trade 
     rules.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Ways

[[Page 8787]]

     and Means and the Committee on International Relations of the 
     House of Representatives, and the Committee on Finance and 
     the Committee on Foreign Relations of the Senate.
       (2) Controlled through the kimberley process certification 
     scheme.--An importation or exportation of rough diamonds is 
     ``controlled through the Kimberley Process Certification 
     Scheme'' if it is an importation from the territory of a 
     Participant or exportation to the territory of a Participant 
     of rough diamonds that is--
       (A) carried out in accordance with the Kimberley Process 
     Certification Scheme, as set forth in regulations promulgated 
     by the President; or
       (B) controlled under a system determined by the President 
     to meet substantially the standards, practices, and 
     procedures of the Kimberley Process Certification Scheme.
       (3) Exporting authority.--The term ``exporting authority'' 
     means 1 or more entities designated by a Participant from 
     whose territory a shipment of rough diamonds is being 
     exported as having the authority to validate the Kimberley 
     Process Certificate.
       (4) Importing authority.--The term ``importing authority'' 
     means 1 or more entities designated by a Participant into 
     whose territory a shipment of rough diamonds is imported as 
     having the authority to enforce the laws and regulations of 
     the Participant regulating imports, including the 
     verification of the Kimberley Process Certificate 
     accompanying the shipment.
       (5) Kimberley process certificate.--The term ``Kimberley 
     Process Certificate'' means a forgery resistant document of a 
     Participant that demonstrates that an importation or 
     exportation of rough diamonds has been controlled through the 
     Kimberley Process Certification Scheme and contains the 
     minimum elements set forth in Annex I to the Kimberley 
     Process Certification Scheme.
       (6) Kimberley process certification scheme.--The term 
     ``Kimberley Process Certification Scheme' means those 
     standards, practices, and procedures of the international 
     certification scheme for rough diamonds presented in the 
     document entitled ``Kimberley Process Certification Scheme'' 
     referred to in the Interlaken Declaration on the Kimberley 
     Process Certification Scheme for Rough Diamonds of November 
     5, 2002.
       (7) Participant.--The term ``Participant'' means a state, 
     customs territory, or regional economic integration 
     organization identified by the Secretary of State.
       (8) Person.--The term ``person'' means an individual or 
     entity.
       (9) Rough diamond.--The term ``rough diamond'' means any 
     diamond that is unworked or simply sawn, cleaved, or bruted 
     and classifiable under subheading 7102.10, 7102.21, or 
     7102.31 of the Harmonized Tariff Schedule of the United 
     States.
       (10) 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.
       (11) United states person.--The term ``United States 
     person'' means--
       (A) any United States citizen or any alien admitted for 
     permanent residence into the United States;
       (B) any entity organized under the laws of the United 
     States or any jurisdiction within the United States 
     (including its foreign branches); and
       (C) any person in the United States.

     SEC. 4. MEASURES FOR THE IMPORTATION AND EXPORTATION OF ROUGH 
                   DIAMONDS.

       (a) Prohibition.--The President shall prohibit the 
     importation into, or exportation from, the United States of 
     any rough diamond, from whatever source, that has not been 
     controlled through the Kimberley Process Certification 
     Scheme.
       (b) Waiver.--The President may waive the requirements set 
     forth in subsection (a) with respect to a particular country 
     for periods of not more than 1 year each, if, with respect to 
     each such waiver--
       (1) the President determines and reports to the appropriate 
     congressional committees that such country is taking 
     effective steps to implement the Kimberley Process 
     Certification Scheme; or
       (2) the President determines that the waiver is in the 
     national interests of the United States, and reports such 
     determination to the appropriate congressional committees, 
     together with the reasons therefor.

     SEC. 5. REGULATORY AND OTHER AUTHORITY.

       (a) In General.--The President is authorized to and shall 
     as necessary issue such proclamations, regulations, licenses, 
     and orders, and conduct such investigations, as may be 
     necessary to carry out this Act.
       (b) Recordkeeping.--Any United States person seeking to 
     export from or import into the United States any rough 
     diamonds shall keep a full record of, in the form of reports 
     or otherwise, complete information relating to any act or 
     transaction to which any prohibition imposed under section 
     4(a) applies. The President may require such person to 
     furnish such information under oath, including the production 
     of books of account, records, contracts, letters, memoranda, 
     or other papers, in the custody or control of such person.
       (c) Oversight.--The President shall require the appropriate 
     Government agency to conduct annual reviews of the standards, 
     practices, and procedures of any entity in the United States 
     that issues Kimberley Process Certificates for the 
     exportation from the United States of rough diamonds to 
     determine whether such standards, practices, and procedures 
     are in accordance with the Kimberley Process Certification 
     Scheme. The President shall transmit to the appropriate 
     congressional committees a report on each annual review under 
     this subsection.

     SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.

       (a) In the United States.--For purposes of this Act--
       (1) the importing authority shall be the United States 
     Bureau of Customs and Border Protection or, in the case of a 
     territory or possession of the United States with its own 
     customs administration, analogous officials; and
       (2) the exporting authority shall be the Bureau of the 
     Census.
       (b) Of Other Countries.--The President shall publish in the 
     Federal Register a list of all Participants, and all 
     exporting authorities and importing authorities of 
     Participants. The Secretary shall update the list as 
     necessary.

     SEC. 7. STATEMENT OF POLICY.

       The Congress supports the policy that the President shall 
     take appropriate steps to promote and facilitate the adoption 
     by the international community of the Kimberley Process 
     Certification Scheme implemented under this Act.

     SEC. 8. ENFORCEMENT.

       (a) In General.--In addition to the enforcement provisions 
     set forth in subsection (b)--
       (1) a civil penalty of not to exceed $10,000 may be imposed 
     on any person who violates, or attempts to violate, any 
     license, order, or regulation issued under this Act; and
       (2) whoever willfully violates, or willfully attempts to 
     violate, any license, order, or regulation issued under this 
     Act shall, upon conviction, be fined not more than $50,000, 
     or, if a natural person, may be imprisoned for not more than 
     10 years, or both; and any officer, director, or agent of any 
     corporation who willfully participates in such violation may 
     be punished by a like fine, imprisonment, or both.
       (b) Import Violations.--Those customs laws of the United 
     States, both civil and criminal, including those laws 
     relating to seizure and forfeiture, that apply to articles 
     imported in violation of such laws shall apply with respect 
     to rough diamonds imported in violation of this Act.
       (c) Authority to Enforce.--The United States Bureau of 
     Customs and Border Protection and the United States Bureau of 
     Immigration and Customs Enforcement are authorized, as 
     appropriate, to enforce the provisions of subsection (a) and 
     to enforce the laws and regulations governing exports of 
     rough diamonds, including with respect to the validation of 
     the Kimberley Process Certificate by the exporting authority.

     SEC. 9. TECHNICAL ASSISTANCE.

       The President may direct the appropriate agencies of the 
     United States Government to make available technical 
     assistance to countries seeking to implement the Kimberley 
     Process Certification Scheme.

     SEC. 10. SENSE OF CONGRESS.

       (a) Ongoing Process.--It is the sense of the Congress that 
     the Kimberley Process Certification Scheme, officially 
     launched on January 1, 2003, is an ongoing process. The 
     President should work with Participants to strengthen the 
     Kimberley Process Certification Scheme through the adoption 
     of measures for the sharing of statistics on the production 
     of and trade in rough diamonds, and for monitoring the 
     effectiveness of the Kimberley Process Certification Scheme 
     in stemming trade in diamonds the importation or exportation 
     of which is not controlled through the Kimberley Process 
     Certification Scheme.
       (b) Statistics and Reporting.--It is the sense of the 
     Congress that under Annex III to the Kimberley Process 
     Certification Scheme, Participants recognized that reliable 
     and comparable data on the international trade in rough 
     diamonds are an essential tool for the effective 
     implementation of the Kimberley Process Certification Scheme. 
     Therefore, the executive branch should continue to--
       (1) keep and publish statistics on imports and exports of 
     rough diamonds under subheadings 7102.10.00, 7102.21, and 
     7102.31.00 of the Harmonized Tariff Schedule of the United 
     States;
       (2) make these statistics available for analysis by 
     interested parties and by Participants; and
       (3) take a leadership role in negotiating a standardized 
     methodology among Participants for reporting statistics on 
     imports and exports of rough diamonds.

     SEC. 11. KIMBERLEY PROCESS IMPLEMENTATION COORDINATING 
                   COMMITTEE.

       The President shall establish a Kimberley Process 
     Implementation Coordinating Committee to coordinate the 
     implementation of this Act. The Committee should be composed 
     of the following individuals or their designees:

[[Page 8788]]

       (1) The Secretary of the Treasury and the Secretary of 
     State, to serve as co-chairpersons.
       (2) The Secretary of Commerce.
       (3) The United States Trade Representative.
       (4) The Secretary of Homeland Security.
       (5) A representative of any other agency the President 
     deems appropriate.

     SEC. 12. REPORTS.

       (a) Annual Reports.--Not later than 1 year after the date 
     of the enactment of this Act and every 12 months thereafter 
     for such period as this Act is in effect, the President shall 
     transmit to the 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 control the exportation of the 
     diamonds through the Kimberley Process Certification Scheme;
       (2) describing whether there is statistical information or 
     other evidence that would indicate efforts to circumvent the 
     Kimberley Process Certification Scheme, including cutting 
     rough diamonds for the purpose of circumventing the Kimberley 
     Process Certification Scheme;
       (3) identifying each country that, during the preceding 12-
     month period, exported rough diamonds to the United States 
     and was exporting rough diamonds not controlled through the 
     Kimberley Process Certification Scheme, if the failure to do 
     so has significantly increased the likelihood that those 
     diamonds not so controlled are being imported into the United 
     States; and
       (4) identifying any problems or obstacles encountered in 
     the implementation of this Act or the Kimberly Process 
     Certification Scheme.
       (b) Semiannual Reports.--For each country identified in 
     subsection (a)(3), the President, during such period as this 
     Act is in effect, shall, every 6 months after the initial 
     report in which the country was identified, transmit to the 
     Congress a report that explains what actions have been taken 
     by the United States or such country since the previous 
     report to ensure that diamonds the exportation of which was 
     not controlled through the Kimberley Process Certification 
     Scheme 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 is controlling the 
     importation and exportation of rough diamonds through the 
     Kimberley Process Certification Scheme.

     SEC. 13. GAO REPORT.

       Not later than 24 months after the effective date of this 
     Act, the Comptroller General of the United States shall 
     transmit a report to the Congress on the effectiveness of the 
     provisions of this Act in preventing the importation or 
     exportation of rough diamonds that is prohibited under 
     section 4. The Comptroller General shall include in the 
     report any recommendations on any modifications to this Act 
     that may be necessary.

     SEC. 14. DELEGATION OF AUTHORITIES.

       The President may delegate the duties and authorities under 
     this Act to such officers, officials, departments, or 
     agencies of the United States Government as the President 
     deems appropriate.

     SEC. 15. EFFECTIVE DATE.

       This Act shall take effect on the date on which the 
     President certifies to the Congress that--
       (1) an applicable waiver that has been granted by the World 
     Trade Organization is in effect; or
       (2) an applicable decision in a resolution adopted by the 
     United Nations Security Council pursuant to Chapter VII of 
     the Charter of the United Nations is in effect.

     This Act shall thereafter remain in effect during those 
     periods in which, as certified by the President to the 
     Congress, an applicable waiver or decision referred to in 
     paragraph (1) or (2) is in effect.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Crane) and the gentleman from Michigan (Mr. Levin) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Illinois (Mr. Crane).
  Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from 
California (Mr. Royce).
  Mr. ROYCE. Mr. Speaker, I would like to begin by commending the 
gentleman from New York (Mr. Houghton), the vice-chairman of the 
Subcommittee on Africa, for working long and hard on this legislation.
  For several years now, the House has been focused on the problem of 
conflict diamonds around the world. Three years ago, the Subcommittee 
on Africa that I chair held a hearing on these conflict diamonds; and 
we have had several hearings on Sierra Leone where, again, these 
diamonds have fueled a conflict, frankly, a conflict that has 
brutalized many children in that country, a conflict that has led to 
the forced amputations of the arms and legs of little girls and little 
boys in Sierra Leone.
  Concerted international action, including a U.N. curb on the diamond 
trade in Sierra Leone and neighboring Liberia, has helped give Sierra 
Leone a chance for peace. The legislation that we are considering today 
builds on that success.
  We should note that the problem of natural resources fueling 
conflicts in Africa is not limited to diamonds. Over the last several 
years, an estimated 2.5 million people have died in the eastern Congo 
due to a conflict being fueled by an illegal natural resource rush. The 
U.N. has documented what it calls ``elite networks,'' government 
officials from Rwanda, Uganda, Zimbabwe, and the Congo acting in 
collaboration with international criminals and war lords. What are they 
doing? They are gorging on diamonds, but also other minerals and on 
farm produce and land and tax revenue, and these characters thrive in 
an environment of conflict. They thrive on death, and we need to combat 
all of this exploitation.
  Today, though, we are focused on a significant part of the problem, 
and that is diamonds; and this legislation is an important tool to 
fight this chaos that is going on in eastern Congo and elsewhere. 
Ending the trade in conflict diamonds is all the more important given 
reports of terrorists using rough diamonds to hide their funds and to 
transfer their funds.
  Again, I would like to commend the gentleman from New York and the 
other Members; and to name a few, I would like to commend the gentleman 
from Virginia (Mr. Wolf); our former Member, the gentleman from Ohio 
(Mr. Hall); the gentleman from New York (Mr. Rangel); and others who 
have worked on this legislation, which has been several years in the 
making. It promises to curb the trade in conflict diamonds while not 
harming the legitimate diamond trade that so many Africans depend on 
for their livelihood.
  This is an important step forward and deserves strong support.
  Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume, 
and I ask unanimous consent to yield the balance of the time, after I 
am done, to the gentleman from California (Mr. Lantos), the ranking 
member of the Committee on International Relations, and also that he be 
allowed to allocate that time as he desires.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. LEVIN. Mr. Speaker, I rise in support of this legislation. H.R. 
1584, the Clean Diamond Trade Act, implements our obligations, the U.S. 
obligations under the Kimberley Process Certification Scheme, an 
international system designed to ensure that rough diamonds entering 
the U.S. are legally mined and traded.
  Once in place, this system will be instrumental in ensuring that 
conflict diamonds, gems that have fueled decades-long wars and 
atrocities in Africa, are not imported into the United States.
  This legislation represents the culmination of a 3-year effort led in 
substantial part by the gentleman from Virginia (Mr. Wolf) and former 
Member, the gentleman from Ohio (Mr. Hall), and the gentleman from New 
York (Mr. Houghton), who is here today, and I salute his efforts, and 
the gentleman from New York (Mr. Rangel).
  Each of these Members has helped to keep the spotlight focused on the 
terrible toll trade in conflict diamonds has had on the people of sub-
Saharan Africa. They have worked diligently and responsibly to address 
the concerns of the administration and of the gentleman from California 
(Mr. Thomas). They have also worked to address concerns about the 
impact of rough diamond regulations on legitimate diamond trade in 
countries such as Botswana, Namibia, South Africa, and Tanzania.
  Let me just say briefly a word about the circumstances under which 
this bill is being considered. There is an urgent time factor. As a 
result, this legislation was not considered in the Committee on Ways 
and Means or the Committee on International Relations; but this was not 
basically an effort to bypass the committee process which, in

[[Page 8789]]

my view, is essential to the development of sound legislation. Rather, 
we agreed, on a bipartisan basis, because of time constraints, to 
proceed in this manner, in part in large measure because of the 
implications of continued nonaction by the U.S.
  Specifically, as I understand it, the entire international 
certification system was not going to go into effect because we here 
had not implemented our obligations. So I am glad we were able to work 
across the aisle, across committees and with the NGO community, the 
diamond industry and the diamond mining country representatives to put 
this bill together.
  I believe it is a beneficial work product, one which I urge my 
colleagues to pass; and also I think it is an example of how to proceed 
on a bipartisan basis. It makes sense here, and it makes sense on other 
important issues.
  Specific provisions I am pleased to see included are inclusion of 
recordkeeping requirements for importers and exporters of rough 
diamonds, mandatory executive branch oversight of any entity that 
issues Kimberley process certificates and provisions to coordinate 
activities of the various agencies and departments that will implement 
this bill and U.S. Kimberley process obligations. With these additions, 
this bill sends an important signal to the international community that 
we here are engaged; that we here take this issue seriously; and that 
we here expect other nations to take the necessary steps to help 
eradicate this plight.
  Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from New 
York (Mr. Houghton).
  Mr. HOUGHTON. Mr. Speaker, I thank the gentleman from Illinois (Mr. 
Crane), the gentleman from Michigan (Mr. Levin), the gentleman from 
California (Mr. Royce), the gentleman from New York (Mr. Rangel). I 
want to thank particularly the gentleman from Virginia (Mr. Wolf) here 
who has been a leading light in this whole proposition and also Tony 
Hall, who is the ambassador to the Food and Agricultural Organization 
in Rome whose spirit just pervades this whole Chamber on this issue.
  A lot of this has already been talked about. I will not go over it in 
detail, but let me just say a few things. This really is a follow-up to 
last year's bill. I will not give my colleagues the number, they know 
it, but this 1584 creates a system to monitor the blood diamonds coming 
from Africa. It is a very, very important bill for a variety of 
reasons, not the least of which the humanitarian aspect; and what it 
does, it attacks the problem of the trade in African diamonds by having 
the President implement the so-called Kimberley process. My colleagues 
know what that is. It is important. It is a vehicle for making this 
bill possible.
  What the bill mechanically does is three things. First of all, it 
bans noncompliant rough diamonds. It severely punishes the violators of 
this ban, and it also helps other countries to set up similar systems.
  Also, this bill will require various reports by the administration 
and a 24-month study by the GAO to report on the effectiveness of the 
system. It urges the President to continue negotiations to strengthen 
the system and protects the legitimate diamond trade and also remains 
consistent with our international trade obligations.
  Like so many other things we do around here, all great ideas 
ultimately degenerate into work; and the people who did the great work, 
David Kavanaugh, Mike Walsh, Viji Rangaswami of the Subcommittee on 
Trade, Frank Record of the Committee on International Relations, Jay 
Bruns of the State Department, and many friends of the Campaign to 
Eliminate Conflict Diamonds, world vision, Amnesty International, 
Oxfam, and Catholic Relief Services. All have added their weight here 
to this very important piece of legislation.
  I urge my associates and my colleagues to pass it.

                              {time}  1545

  Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume, 
and I rise in strong support of this resolution. First, Mr. Speaker, I 
would like to commend my good friend and colleague, the gentleman from 
New York (Mr. Houghton), who has done so much to promote human rights 
and human dignity and fairness and justice in Africa, and indeed 
throughout the globe. I also want to thank all of my colleagues on both 
sides of the aisle for making a contribution to this legislation.
  Mr. Speaker, our legislation requires the United States to 
participate in the Kimberly Process certification scheme. This process 
is designed to prevent international trade in conflict diamonds while 
protecting legitimate trade.
  One cannot speak of conflict diamonds, Mr. Speaker, without recalling 
in vivid detail the young children from Sierra Leone who came before 
this Congress as tiny witnesses to the horror of so-called resource 
wars in Africa. Little boys and little girls with arms and legs missing 
sat quietly before the Committee on International Relations as we 
listened to the gruesome details of the civil war in Sierra Leone.
  The civil war was not a just war. This was a war of shameless greed 
and shameless corruption, an uncivilized war that knew no mercy, that 
knew no limit to cruelty. This war, and the wars in Angola and the so-
called Democratic Republic of Congo, were fueled in large part by the 
illicit trade in so-called conflict diamonds. While some call these 
diamonds a curse on these countries, it is the evil men who would 
slaughter parents and maim children who are the ultimate curse on these 
countries and on humanity as a whole.
  Mr. Speaker, the wars in Sierra Leone and Angola have ended, and in 
Sierra Leone many of the wrongdoers are being brought to justice. 
Sanctions against conflict diamonds played a significant part in 
helping to stop these wars. While the immediate crisis has passed, the 
effects will linger far into the future. I trust we will be willing to 
step up to the plate when we are called upon to help.
  Mr. Speaker, H.R. 1584 will make sure that the United States and our 
jewelry industry are not complicit in any further exploitation of 
diamonds to fuel civil conflicts. Our legislation prohibits the 
importation to or exportation from the United States of any rough 
diamonds, from whatever source, that are not controlled through the 
Kimberly Process. I urge all of my colleagues to support H.R. 1584.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CRANE. Mr. Speaker, I yield 3 minutes to the gentleman from 
Virginia (Mr. Wolf).
  Mr. WOLF. Mr. Speaker, I thank the gentleman for yielding me this 
time, and I want to say thanks to the chairman of the Committee on Ways 
and Means, the gentleman from California (Mr. Thomas), the chairman of 
the Subcommittee on Trade, the gentleman from Illinois (Mr. Crane), and 
their staff, Angela Ellard and Dave Kavanaugh, with the help of Viji 
Rangaswami from the minority staff for their efforts on the bill. In 
addition, I want to thank the gentleman from New York (Mr. Houghton) 
and his staff, Bob Van Wicklin for pulling this bill together and 
staying very faithful during this difficult time; also, Frank Record 
and Joan Condon from the Committee on International Relations for their 
important contributions.
  The passage of this bill is really a tribute to a former Congressman, 
Tony Hall, who brought this issue to the body and asked me to go with 
him several years ago to Sierra Leone. So, Tony, this is really because 
of your work. And who says one person cannot make a difference?
  Mr. Speaker, millions of people have died in Africa because of the 
bloodshed surrounding conflict diamonds. The bill we consider today may 
finally bring hope and justice to the millions of Africans who have 
suffered. In addition, major media organizations, the Washington Post 
and the BBC, have reported direct connections between blood diamonds 
and the al Qaeda terrorist network. Addressing the issue of conflict 
diamonds is not only essential for the millions dying and suffering in 
Africa but also for America's national security.

[[Page 8790]]

  This version of the bill before the House is a good one, and I am 
confident the President has the tools to ban trade of rough diamonds 
that fund terrorists and other groups that commit despicable actions 
against innocent people. The al Qaeda, Hezbollah, and many other groups 
have been funded through this diamond trade.
  This bill is an important improvement over other drafts we have seen 
this year. For example, the bill language has established the Kimberly 
Process Coordination Committee. The committee would coordinate the 
implementation of the act. Both the Secretaries of State and Treasury 
would be chairs of the committee. With the assistance of the 
Secretaries of Commerce, Homeland Security, and the U.S. Trade Rep, 
there would be greater pressure to be sure the process is implemented 
as the Congress intends.
  Further, a former Ambassador to Sierra Leone, Ambassador Melrose, has 
told us that the ability to maintain statistical information is vital 
to make a determination as to whether or not the Kimberly Process is 
being successful or circumvented. This will take care of that.
  The bill prevents illicit conflict diamonds from entering the United 
States. This is a tribute not only to former Congressman Hall, but also 
as a sign that we care deeply about the young men and women and 
children who had their arms cut off and all those activities that took 
place. And I just want to thank all the Members and the staff that have 
been involved in bringing this bill here.
  Mr. LANTOS. Mr. Speaker, I am very pleased to yield 3 minutes to the 
gentlewoman from California (Ms. Lee), my good friend and neighbor, who 
has fought so hard for human rights in Africa and elsewhere.
  Ms. LEE. Mr. Speaker, I want to thank the gentleman for his 
leadership in advocating human rights throughout the world and also for 
making sure that this is a bipartisan bill.
  I rise today in support of the Clean Diamonds Trade Act. Finally, 
Congress, the international community, and the various grassroots 
organizations' efforts to sever the link between diamonds and war has 
come to the floor for a vote. So I want to thank the gentleman from New 
York (Mr. Houghton), the gentleman from Illinois (Mr. Hyde), and again 
our ranking member, the gentleman from California (Mr. Lantos), as well 
as the chair of the Subcommittee on Africa, the gentleman from 
California (Mr. Royce) and our ranking member, the gentleman from New 
Jersey (Mr. Payne) for their continued commitment to this issue. I 
encourage all Members to support this bill.
  Some have argued that regulating the global diamond industry should 
not be Congress' responsibility, but I argue that promoting peace over 
conflict, supporting our international communities' efforts to clean up 
the global diamond system, and introducing ways to support the people 
in Africa, who have not been able to benefit from their own resources, 
should be our goal. This legislation transforms diamonds into a 
commodity from which all communities can benefit, not just a chosen 
few.
  H.R. 1584, the Clean Diamonds Trade Act, provides a long list of 
overdue regulation on conflict diamonds. The bill requires United 
States compliance with the Kimberly Process certification. It imposes 
costly, very costly, civil penalties and jail time, which is very 
important, jail time for those who willfully violate the act, and 
incorporates oversight from our Customs Service and other key agencies 
which oversee international trade.
  I believe each component is essential to ending the sale of conflict 
diamonds. And, further, I hope that we will find a way to incorporate 
more Africans into the diamond industry itself to promote more 
entrepreneurship and sustainable development.
  In closing, I would like to thank several organizations, including 
Amnesty International, World Vision, Physicians for Human Rights, Oxfam 
America, and World Relief for their continued support of conflict 
diamond reforms. Over 65 percent of these conflict diamonds, Mr. 
Speaker, were sold to people in our own country. So I want to thank our 
constituents for pushing for reform instead of accepting this unjust 
trade.
  I urge all our colleagues to support this bipartisan bill and the 
passage of H.R. 1584, and I want to thank once again the gentleman from 
California (Mr. Lantos) again and the gentleman from New York (Mr. 
Houghton).
  Mr. CRANE. Mr. Speaker, I yield 5 minutes to the gentleman from New 
Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Mr. Speaker, I thank the distinguished 
chairman for yielding me this time and for his great work on behalf of 
this legislation, and to the gentleman from New York (Mr. Houghton) for 
his superb leadership in crafting this bill.
  I rise in strong support, Mr. Speaker, of the Clean Diamond Trade 
Act, a long overdue measure that will restore the U.S. in a leadership 
position in the fight against the trade in conflict diamonds. For too 
long, the international community has looked the other way as rebel 
groups have trafficked in the sale of lethal military weapons using the 
profits from the sale of these diamonds to finance efforts to overthrow 
legitimate governments.
  This bill will put in place the required laws and regulations 
designed to monitor and control the import and export of the trade in 
conflict diamonds so they can no longer be used to support instability 
and armed conflict throughout much of Africa and other parts of the 
world.
  By all accounts, they are aptly named conflict diamonds. During the 
past decade, more than 6 million 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 for diamond mining areas.
  I have met on several occasions, Mr. Speaker, with David Crane, the 
Sierra Leone Special War Crimes Prosecutor, who told me about ghastly 
war crimes committed in the name of diamond profits. Not only has the 
illegitimate trade of diamonds led to systematic and gross human rights 
violations and civil unrest, so too it has hurt the trade in legitimate 
diamonds, which makes a critical contribution to the economies of many 
developing countries.
  Numerous resolutions, Mr. Speaker, of the United Nations Security 
Council under Chapter VII of the U.N. Charter, including resolutions 
1173, 1295, 1306, and 1343, as well as a United Nations General 
Assembly resolution in 2000 have laid the groundwork for devising an 
international regime to stop the flow of these conflict diamonds.
  The first meeting, as I think Members know, to discuss this took 
place in Kimberly, South Africa, in May of 2000 at the initiative of 
the African producing countries. Many technical and working group 
meetings took place subsequent to that throughout Africa and Europe, 
culminating in the November 2002 meeting in Interlaken, Switzerland, 
finalizing the so-called Kimberly Process.
  This historic meeting committed all 48 participants, including the 
United States, to the rapid implementation of its diamond certification 
scheme for rough diamonds consistent with international trade rules. 
Fully consistent with the work of the diamond industry, including the 
World Diamond Council, numerous civil society representatives and key 
NGOs, the voluntary self-regulating initiatives from many producing 
importing countries have now been melded through the Kimberly Process 
into a global system of mutually recognized certificates for legitimate 
diamonds.
  Our own Nation's extensive participation in this effort, under the 
auspices of the State Department's special negotiator for conflict 
diamonds, is reflected in the measure before us today. The bill 
implements our obligations to prohibit the import or export of rough 
diamonds not controlled by the Kimberly Process.
  The bill specifies that the exporting authority under the bill will 
be the Bureau of the Census, and their role will be to issue the 
required regulations and guidelines to ensure that any proposed exports 
of rough diamonds be made

[[Page 8791]]

through the automated export system. Any efforts to fully evaluate and 
enforce this system validating Kimberly Process Certificates would be 
undertaken by the United States Bureau of Customs and Border Protection 
and the Bureau of Immigration and Customs Enforcement.
  I would also point out to my colleagues that the legislation gives 
the State Department a lead role, together with the Treasury, in 
implementing the legislation. In this regard, the existing special 
negotiator for conflict diamonds in the Bureau for Economic and 
Business Affairs should continue to play a key role in this effort.

                              {time}  1600

  Mr. Speaker, it is the expectation of the Committee on International 
Relations that it will be fully consulted by the Department to the 
extent it decides to take any action to modify this position in any 
way. It has been brought to my attention that a number of 
nongovernmental organizations who are taking an active role in 
monitoring the implementation of the Kimberly Process have expressed 
concerns that several countries, including the Republic of the Congo, 
the Democratic Republic of the Congo, Zimbabwe and the Central African 
Republic, have been admitted as participants in the certification 
scheme despite evidence of continued illegal trade in rough diamonds.
  I would ask the Department to examine this evidence and take any and 
all appropriate actions necessary to mitigate and stop this illegal 
activity. I urge support for the bill.
  Mr. LANTOS. Mr. Speaker, I yield 3 minutes to the gentleman from New 
York (Mr. Rangel).
  Mr. RANGEL. Mr. Speaker, I thank the ranking member of the Committee 
on International Relations, and all of the Members of the House that 
worked on this legislation, including the gentleman from New York (Mr. 
Houghton) and our past Member, Tony Hall, for the interest and support 
that he has given. I would like to thank the nongovernment 
organizations for the work that they have done to make the Kimberly 
Process available to us, and the certificates, so we can move forward 
with better trade with those who produce raw diamonds.
  Like other Members, I was motivated to get involved in this issue 
after seeing the horrific evidence of violence wrought by rebel groups 
financing their civil war activities and human rights abuses through 
the illegal diamond trade. Addressing this issue, it seemed to me, was 
part and parcel of our responsibility to assist the nations of sub-
Saharan African countries by bringing peace to the continent.
  In addition, I understood if we did not curtail trade in illegal 
diamonds, our failure to act would have a chilling effect on the 
legitimate diamond trade for countries such as Botswana where 
legitimately mined diamonds provide a significant source of her income. 
The stain of conflict diamonds threatens to have a tremendous adverse 
impact on her.
  I would like to say a few words about the process by which this 
legislation is being considered. Normally, I have been a strong 
advocate that all legislation go through the committee process and be 
fully debated; but this particular bill did not go through the 
Committee on Ways and Means or the Committee on International 
Relations, but I do believe in view of the time pressure to pass this 
very important legislation that this should be an exception to the rule 
and there should not be any controversy. I am pleased to be working 
with the gentleman from California and on the other side of the aisle 
with the gentleman from Illinois (Mr. Crane) to give this support in 
connection with the urgency that it deserves. I ask all of my 
colleagues to support this bill.
  Mr. CRANE. Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Meeks).
  Mr. MEEKS of New York. Mr. Speaker, I thank the ranking member, the 
gentleman from California (Mr. Lantos), and the gentleman from Illinois 
(Chairman Hyde), and of course from the Committee on Ways and Means, 
the gentleman from California (Mr. Thomas) and the gentleman from New 
York (Mr. Rangel).
  As a member of the Subcommittee on Africa, we spend a great amount of 
time on exploring and understanding conflicts in Africa and how 
devastating the symptoms of the civil war and low-intensity conflicts 
can be in terms of loss of life and loss of development opportunities.
  However, we often do not spend sufficient time on the underlying 
causes of conflicts of the wars, including wars started and perpetuated 
over trying to control who gets to benefit from the free trade of 
Africa's vast natural resources like diamonds. Today's bill makes a 
positive step in the right direction to bring an end to those who would 
profit from conflict and war and violence at the expense of 
socioeconomic development. It makes a step in the right direction to 
wage a war on the international trade nexus of money, diamonds and 
weapons which help fuel conflicts in Africa.
  I want to thank Members on both sides of the aisle for supporting 
this initiative. It represents a compromise between doing more to help 
stop the trade of illegal conflict diamonds while also protecting the 
trade of diamonds from countries which produce and sell diamonds in 
ways which support economic development.
  Mr. Speaker, H.R. 1584 is a measure we can all support. We must not 
lose sight of the fact that for centuries Africa's vast resources have 
been used in legal and illegal ways and provide little benefits to 
African societies.
  If we want to change these realities, if we want the trade of 
Africa's diamonds, oil, and gold to support economic growth and 
development, we must devote as equal a level of attention and financial 
resources as we spend on trade liberalization and privatization efforts 
to assist African societies in building the necessary economic, 
regulatory, supervisory, and enforcement institutions and laws that 
every society must have to have a transparent, competitive and free 
market economy, an economy where both the rights and obligations of the 
private sector and consumers are protected, an economy which provides 
opportunities and freedom for all. This Congress can start today with 
H.R. 1584.
  Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Arkansas (Mr. Synder).
  Mr. SNYDER. Mr. Speaker, almost 20 years ago I lived and worked in 
Sierra Leone for 6 months. I was a doctor at a Catholic mission 
hospital. At that time, Sierra Leone was poor and unhealthy with a life 
expectancy of 42 years. It was inefficient with a low level of 
corruption, but it was not dangerous. And then along came these 
conflict diamonds, blood diamonds, which stimulated greed and provided 
purchasing power for the weapons and drugs that were used in this very, 
very brutal war.
  As the international community responded to the war in Sierra Leone, 
a lot of Americans may ask themselves, What does that have to do with 
me? What is wrong with having a cheaper supply of diamonds? Sierra 
Leone is so far away.
  Mr. Speaker, drying up the cash that supports terrorism is a very 
important part of the war on terrorism; but we can freeze all of the 
bank accounts we want and stop the cash transfers, but somebody can 
take a sock full of illegal diamonds, put it in their pocket, walk onto 
a plane, and they have an ability to move wealth all over the world, to 
bribe and buy weaponry and buy explosives. This bill is an important 
part of our national security, not just in Africa.
  Rats have a way of finding a hole in the house, and one of the things 
that I like about this bill today is that it has the vigilance that 
legislation needs. It has reporting requirements so we can monitor the 
success and failures in this bill, and I hope that we will respond in a 
rapid manner should we see we have some gaps. I encourage a strong vote 
of support for the Clean Diamond Trade Act.

[[Page 8792]]


  Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Watson), a former distinguished ambassador, and a 
distinguished member of the Committee on Ways and Means.
  Ms. WATSON. Mr. Speaker, I rise in strong support of H.R. 1584, the 
Clean Diamond Trade Act. Over the past decade, many brutal civil wars 
throughout Africa have been financed with the sale of diamonds. These 
so-called conflict diamonds have been especially useful to the brutal 
Sierra Leone rebel organization, the Revolutionary United Front, which 
has been trading these diamonds to fund its war against the government 
of Sierra Leone.
  This bill implements the Kimberly Process Certification Scheme, which 
prohibits importing rough diamonds into the United States unless they 
have been certified as not originating from areas where the diamond 
trade finances or generates violent conflict. In essence, this bill 
prohibits the importation of any rough diamond that has not been 
controlled through the Kimberly Process.
  Mr. Speaker, I plan to introduce a bill in the next few days that 
also supports and endorses the Kimberly Process, but also encourages 
the global diamond industry, as represented by the World Diamond 
Council, to step up to the plate and establish a fund to support a 
variety of programs that will aid in the reconstruction and 
rehabilitation of African nations traumatized by civil wars financed 
through the diamond trade.
  I believe the diamond industry, which has reaped the financial 
rewards of trade with nations engulfed in civil war, must also take 
responsibility in assisting these nations to heal the wounds of war and 
creating a just and lasting peace in those countries. While there have 
been a number of groups within the gemstone industry that have been 
responsive, others have not yet chosen to acknowledge the humanitarian 
emergency that the trade in conflict diamonds has produced.
  Mr. LANTOS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, before I speak on the bill, I want to congratulate 
Members on both sides of the aisle, especially the gentleman from New 
York (Mr. Houghton) for the gentleman's work on behalf of getting this 
bill introduced. I also thank the gentleman from Virginia (Mr. Wolf) 
and the gentleman from California (Mr. Lantos) and the gentleman from 
New York (Mr. Rangel) on the other side of the aisle.
  This is a very important bill that has nothing to do with partisan 
politics whatsoever. When it was introduced in 2001, it passed this 
body by a vote of 408 to six. I think the six Members that voted 
against it at the time are probably reconsidering it because there is 
no basis for anyone to find any objections to it.
  I hope that the bill we have before us this evening, based on H.R. 
2722 from the 107th Congress, which passed by that 408 to six vote, and 
since that time the administration has worked with the international 
community to finalize the structure of the Kimberly Process 
Certification Scheme which controls the trade in rough diamonds, that 
it is to all countries, and it prevents trade in conflict diamonds and 
the bill reflects the new structure. I thank the administration for its 
hard work and dedication to the effort on this important issue, too.
  The funds derived from the sale of rough diamonds have been used by 
rebels and state actors to finance military activities and to overthrow 
legitimate governments, subvert international efforts to promote peace 
and stability, and commit horrifying atrocities against unarmed 
citizens.
  During the past decade, more than 6.5 million 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. The United Nations Security Council has issued 
resolutions urging nations to take actions against conflict diamonds. 
In response, the United States has issued various Presidential 
executive orders to ban direct imports from nations subject to the 
United Nations resolution. The United States has also led international 
negotiations to reach an agreement that set standards for diamond 
extracting and trading nations to meet.
  These international negotiations, the Kimberly Process it is called, 
came after the name of the city in which they were initiated. It 
creates a system of checks and balances for rough diamonds throughout 
the world. This system tracks through governmentally verifiable 
certificates that trade in diamonds between countries and individuals. 
Since its January 1 implementation date, over 40 countries are 
participating in this system. The United States requires this system to 
ensure that its leadership position in this critical matter continues. 
Finally, this bill is consistent with our WTO obligations.
  Mr. Speaker, I strongly urge my colleagues to support this bipartisan 
bill and to pass this important legislation.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in support of H.R. 
1584--To implement effective measures to stop trade in conflict 
diamonds, and for other purposes. The Clean Diamonds Act prohibits the 
import of diamonds into the United States unless the exporting country 
is implementing a system of controls on the export or import of rough 
diamonds that meets specified requirements, consistent with United 
Nations General Assembly Resolution 55/56 adopted on December 1, 2000, 
or a future international agreement which implements such controls and 
to which the United States is a signatory. Additionally, this 
legislation sets forth both civil and criminal penalties for violations 
of the bill's requirements. It prohibits the Overseas Private 
Investment Corporation and the Export-Import Bank from engaging in 
certain transactions in connection with projects or exports to 
countries violating the requirements of this Act. If further expresses 
the sense of Congress that the President should take steps to negotiate 
an international agreement to eliminate the trade in diamonds used to 
support conflict in the country or regions in which such diamonds are 
mined.
  Mr. Speaker, to many people, diamonds symbolize love, happiness, or 
wealth. But for others, they mean conflict, misery and poverty. In 
African countries such as Angola, Democratic Republic of Congo, and 
Sierra Leone, the profits from unregulated diamond trade allows rebel 
forces to obtain weapons and fund armed conflicts. Also, this practice 
spills over into neighboring countries that can be used as trading and 
transit grounds for illicit diamonds, and once the diamonds are brought 
to market, their origin is difficult to trace and once polished, they 
can no longer be identified. As a result of the complex nature of this 
process, tens of thousands of civilians have been killed, raped, 
mutilated or abducted.
  In an amputee camp in the capital of Freetown, one will find a three-
year-old girl whose right arm was chopped off with a machete. One might 
also not be shocked to find her or himself opposite a 14-year-old girl, 
pregnant by rape, who will never be able to hold her child because the 
rebels who raped her also hacked off both of her arms. Other amputees 
describe the horror of being forced to select at random a piece of 
paper out of a bag, and losing the body part written on the scrap--arm, 
leg, ear, or nose.
  The enactment of this legislation will not only eliminate the degree 
to which human lives are negatively impacted by the brutal practices of 
these rebel forces, but also it would do much to increase consumer 
confidence with respect to the purchase of diamonds by allowing 
American jewelers and jewelry store to tell their consumers the 
diamonds in their store are clean diamonds. Currently, no jeweler knows 
where their diamonds come from, and they cannot assure their customers 
their diamond purchases are not unwittingly subsidizing a cruel and 
abusive rebel force in one of these nations. Nonetheless, once the 
``Clean Diamonds Act'' is passed, jewelers will at last have a ``clean 
stream'' of diamonds to sell. They can be confident the United States 
government is evaluating every diamond supplying country and excluding 
those that fail to conform to internal standards.
  In a statement by Ambassador Juan Larrain, Chairman of the Monitoring 
Mechanism on sanctions against UNITA, he stated ``It has been said that 
war is the price of peace. . . [These nations] have already paid too 
much. Let them live a better life.''
  Mr. Speaker, I urge my colleagues to join in this momentous effort to 
end the devastation that is occurring as a result of these conflicts. 
Now is the time to act on behalf of the many

[[Page 8793]]

lives being sacrificed and those that are calling for our help and our 
immediate attention to their pain and suffering. for this reason, we 
must remain vigilant and not allow ourselves to ignore the blood of the 
blameless.
  However, it is imperative that we not penalize African countries like 
Ghana, that have been diligent in certifying their diamonds and 
standing up against the rebel, terrorist, and violent use of such 
diamonds. This is an important economic resource of such countries and 
the legislature must acknowledge that.
  Mr. CRANE. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Linder). The question is on the motion 
offered by the gentleman from Illinois (Mr. Crane) that the House 
suspend the rules and pass the bill, H.R. 1584, 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. LANTOS. 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.

                          ____________________