[Congressional Record (Bound Edition), Volume 152 (2006), Part 5]
[Senate]
[Page 5747]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        CFIUS REFORM LEGISLATION

  Mr. REID. Mr. President, I wish to take a moment to acknowledge 
Senators Shelby and Sarbanes in their work to ensure national security 
is at the forefront of the critical Government review process that is 
triggered when a foreign-owned company attempts to purchase U.S. 
companies and assets. At the same time, Senators Shelby and Sarbanes 
struck a balance that will not unnecessarily hinder investment in 
America.
  The Dubai Ports fiasco shined a light on a flawed process at the 
Committee on Foreign Investment in the United States--referred to as 
CFIUS. It raised questions regarding the competence of those in the 
Bush administration to review these matters and make decisions about 
the purchase of strategic U.S. assets. It also raised questions about a 
process that did not trigger a full investigation into a transaction 
that was so important to our national security.
  Members of Congress, Governors, and even the President found out 
about the approval only through newspaper reports. Notwithstanding the 
President's knee-jerk threats to veto legislation overturning the deal 
and frantic efforts by the Treasury and Homeland Security to justify 
this sale, the American public is rightly convinced that something 
needs to be changed about the CFIUS process.
  First, this process has to place a far greater emphasis on nationa1 
security. Second, the process has to have more legitimacy--so the 
American public will have confidence that these sales of strategic 
assets get the thorough review they deserve by Government. Third, the 
CFIUS process must require a greater level of accountability from those 
who administer the program so that we ensure that the process is 
followed as designed. Finally, the process must be balanced to ensure 
that the vast majority of transactions that raise no concerns are not 
inadvertently undermined.
  The Senate Banking Committee on Thursday voted to report legislation 
unanimously that would reform the CFIUS process. It was a difficult 
job. I commend Senators Shelby and Sarbanes for putting together 
bipartisan, consensus legislation that puts security first, while 
striking a balance that continues to welcome foreign investment. 
America has benefited a tremendous amount from foreign investment into 
our economy, so I am glad that we have not overreacted to the Bush 
administration's mistakes and mismanagement in their review of these 
important transactions.
  As with other legislation we deal with, this legislation is not 
perfect. And, as it moves forward, I hope we can work together to make 
further improvements. I urge the majority leader to schedule floor 
consideration as soon as possible so that we can complete action on 
this bill before we adjourn this fall.

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