Doug Bereuter

Mr. BEREUTER

Mr. BEREUTER. Madam Speaker, I yield such time as he may consume to the gentleman from California (Mr. Royce) in support of the resolution. Our colleague from California has brought invigorated leadership to the Subcommittee on Africa. His sponsorship of this legislation, along with the cosponsorship in original form by the gentlemen from New Jersey (Mr. Menendez) and (Mr. Smith), are examples of the leadership he has brought to American foreign policy with respect to Africa.

Mr. BEREUTER. Madam Speaker, I yield myself such time as I may consume. H. Res. 415, a resolution supporting the development of Radio Democracy for Africa, was sponsored by the gentleman from California (Mr. Royce). This resolution promotes independent radio broadcasting in Africa through the Voice of America. It calls for VOA to provide journalistic training and for USIA to expand its economic, political and human rights programming in Africa to support indigenous efforts aimed at promoting democratization. The administration supports this enhanced broadcasting effort in Africa and VOA is working to get expanded programming on the air. This is an appropriate use of international broadcasting funds. Many African nations are struggling for peace and democracy. Hopefully the efforts encouraged by this resolution will put into force a strong and comprehensive international broadcasting program throughout the African continent to assist emerging democracies. I commend my colleague who will speak soon, the gentleman from California (Mr. Royce) for his initiative and for that of my other colleagues in offering this resolution. Madam Speaker, I reserve the balance of my time.

Mr. BEREUTER. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this measure.

Mr. BEREUTER

Mr. BEREUTER. Madam Speaker, I urge unanimous support for this resolution, and I yield back the balance of my time.

Mr. BEREUTER. Madam Speaker, I yield such time as he may consume to the gentleman from New Jersey (Mr. Smith), who has been very much involved in this issue as well.

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume. I strongly support this resolution which calls on the Cuban regime to return Joanne Cheismard to the United States. It is shameful and unacceptable that Fidel Castro continues to harbor murderers and other hardened criminals like Ms. Chesimard. The victims of her crime, New Jersey State trooper Werner Foerster and his widow Rose and their family, have been denied justice by Fidel Castro. In approving this resolution, the committee made an amendment which underscores that ``the Federal Bureau of Investigation lists 90 felony fugitives known to have been granted safe haven by the Cuban government.'' These include Robert Vesco, Victor Gerena, who is on the FBI's top 10 most wanted listed, and Trank Terpil, a rogue CIA agent wanted for selling explosives to Libyan dictator Mu'ammar Qadhafi. I commend the gentleman from New Jersey (Mr. Franks) for sponsoring this resolution. Our colleague on the committee, the gentlewoman from Florida (Ms. Ros-Lehtinen) is a cosponsor, as is the gentleman from Florida (Mr. Diaz-Balart); in addition, the gentleman from New Jersey (Mr. Menendez) who is also a member of our committee. They have been steadfast advocates for the Foerster family, and I thank them for their efforts. I would additionally like to thank New Jersey Governor Christine Todd-Whitman for exercising personal leadership in pressing for the passage of this resolution calling on the Cuban government to see that justice is done for the Foerster family. This terrible tragedy dragged on far too long, due exclusively to Fidel Castro's intransigence. Accordingly, I urge my colleagues to join me in supporting H. Con. Res. 250. Madam Speaker, I reserve the balance of my time.

Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and agree to the concurrent resolution (H. Con. Res. 254) calling on the Government of Cuba to return to the United States convicted felon Joanne Chesimard and all other individuals who have fled the United States to avoid prosecution or confinement for criminal offenses and who are currently living freely in Cuba, as amended.

Mr. BEREUTER. Madam Speaker, on that I demand the yeas and nays.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume, simply to conclude by saying congratulations and to commend the gentleman from New Jersey (Mr. Smith) for sponsoring this legislation. He has brought to bear his considerable knowledge and experience in this region in an extraordinary fashion, working very cooperatively with the gentleman from California (Mr. Lantos) and other colleagues. Joining the gentleman from California (Mr. Lantos) as original cosponsors were the gentleman from Illinois (Mr. Porter) the gentleman from New Jersey (Mr. Smith), the gentleman from Hawaii (Mr. Abercrombie), the gentlewoman from Florida (Ms. Brown), the gentleman from Ohio (Mr. Brown), the gentleman from Maryland (Mr. Cardin), the gentleman from Ohio (Mr. Hall) and others. So, Mr. Speaker, I do thank my colleagues, and to the gentleman from New Jersey (Mr. Smith) and the gentleman from California (Mr. Lantos) I say thank you for your excellent work. I urge my colleagues to give their unanimous support to this resolution.

Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and agree to the concurrent resolution (H. Con. Res. 304) expressing the sense of the Congress regarding the culpability of Slobodan Milosevic for war crimes, crimes against humanity, and genocide in the former Yugoslavia, and for other purposes.

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, for most of this year, we have witnessed a repeat of the carnage and the havoc that the world experienced during the conflict in the former Yugoslavia at the beginning of the decade. Some people, not this Member, had a degree of optimism with the signing of the Dayton Peace Agreement some 3 years ago. However, now once again we are faced with the tragic spectacle of hundreds of thousands of innocent civilians made homeless, towns and villages in ruins, unknown numbers of persons dead or missing in Kosovo. The architect of this misery is of Slobodan Milosevic, the very same individual who produced the Bosnian tragedy or at least contributed mightily to it and presided over the dissolution of what was once Yugoslavia, who brought poverty and misery to his own Serbian people by his policy and actions and who has sown the seeds of strident nationalism throughout the Balkans. Yet, despite this disgraceful record and his undeniable responsibility for what has occurred in the former Yugoslavia and what continues to this very day, the international community has been hesitant to indict Milosevic for crimes at the International Criminal Tribunal for the former Yugoslavia, ICTY. The distinguished chairman of our Subcommittee on International Operations and Human Rights, our distinguished colleague, the gentleman from New Jersey (Mr. Smith), has introduced a resolution that simply puts the Congress on record that if anyone deserves to be indicted, it is Slobodan Milosevic. An identical measure, S. Con. Res. 105, passed the Senate in July. We need to put Milosevic, and others who may be responsible for the savagery in Kosovo, on notice that they cannot escape culpability. It is important that Milosevic fully understands that the Congress is supportive of U.S. efforts to curb his vicious assaults on ethnic Albanian civilians in that area. Whatever his reasons, wanton attacks on civilians constitutes a grave breach of international law. Our chairman, the distinguished gentleman from New York (Mr. Gilman) has also called upon Secretary Albright to provide whatever collaborative information the U.S. might possess regarding any atrocities in Kosovo. The gentleman from New York (Mr. Gilman) is requesting a review of the options, that the administration is prepared to pursue to make Mr. Milosevic cooperate with the international efforts to provide humanitarian assistance to those in need in Kosovo, and to permit displaced persons to return to their homes in safety. Mr. Speaker, I understand Chairman Gilman is awaiting the Secretary's response in view of the mounting severity of the situation and the approach of winter. Unless the United States and the international community acts swiftly in the next few weeks, we face the prospect of hundreds of thousands of displaced persons, women, children, and the elderly, becoming ill and dying in the cold which will soon set in the mountains of Kosovo. Mr. Speaker, this is unacceptable, of course, and we must act now to prevent such a catastrophe. It is imperative that the House join our colleagues in the Senate and agree to this resolution today in order to send a strong message that Milosevic is accountable. I urge my colleagues to unanimously support H. Con. Res. 304. Mr. Speaker, I yield such time as he may consume to the distinguished gentleman from New Jersey (Mr. Smith) the author of the resolution.

Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume only to commend the gentleman from New Jersey (Mr. Smith) on his excellent statement and on his initiative. Mr. Speaker, I reserve the balance of my time.

Mr. BEREUTER

Mr. BEREUTER. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H. Con. Res. 224, the measure under consideration.

Mr. BEREUTER. Madam Speaker, I yield myself such time as I may consume. (Mr. BEREUTER asked and was given permission to revise and extend his remarks.)

Mr. BEREUTER. Madam Speaker, this measure, H. Con. Res. 224, calls our attention to a problem of growing concern. While most Americans are aware of the large number of cases involving children abducted by a noncustodial parent in the United States, very few are aware of the international dimensions of the problem. I commend the gentleman from Arkansas (Mr. Berry) for his initiative in introducing this resolution. A by-product of our increasingly interdependent globe has been an increase in the number of American citizens marrying citizens of other countries. It is a sad fact of today's society that a high number of marriages result in divorce, and these international marriages are as subject to the strains that affect marriages as those between citizens of the same country. In fact, there may be additional strains caused by differences of culture in such relationships. When an international marriages results in children and the parents obtain a divorce, with the foreign national spouse choosing to return to his or her own country, the offspring can be quickly embroiled in a complex situation, not only torn between two parents but also between two countries. There are tragically nearly 1,000 cases pending with the Office of Children's Issues at the State Department that handles children wrongfully taken from a custodial parent in the United States to another country. I am hopeful that this measure will help spotlight this problem and attempt to deal with it. We also would like to see our government, particularly the State Department, intensify its efforts to get more international cooperation in addressing the criminal aspects of international parental child abduction and also in getting more countries, particularly in the Middle East, to abide by the Hague Convention on the Civil Aspects of International Child Abduction. For all these reasons, this resolution is a timely one. I ask all the Members of the House to join in supporting H. Con. Res. 224.

Mr. BEREUTER. Madam Speaker, I yield such time as he may consume to the gentleman from New York (Mr. Gilman), the chairman of the Committee on International Relations. (Mr. GILMAN asked and was given permission to revise and extend his remarks.)

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, this Member rises in strong support of H. Res. 459, a resolution commemorating 50 years of relations between the United States and the Republic of Korea. H. Res. 459 was introduced by the distinguished gentleman from New York, the Chairman of the Committee on International Relations [Mr. Gilman] on June 5th, and referred to the Subcommittee on Asia and the Pacific. The people of Korea have no better friend in the U.S. Congress than the gentleman from New York, and this Member commends the gentleman for his efforts to craft a strong bipartisan statement of support for U.S.-Korea relations. This Member is pleased to join his chairman in cosponsoring this important resolution. Over the past fifty years America has maintained a strong, multifaceted relationship with South Korea that includes a range of security, economic, and political issues. Throughout the Cold War, we have remained close allies and firm friends. The 1953 Mutual Defense Treaty is not only important to the security of South Korea but to the peace and stability of northeast Asia as well. Despite the recent financial instability, South Korea's economy experienced remarkable growth since the end of the Korean War. Today the United States is South Korea's largest trading partner and largest export market. In turn, South Korea is America's seventh largest trading partner, fifth largest export market, and fourth largest market for U.S. agricultural products. As Chairman of the Subcommittee with oversight responsibility over the Korean Peninsula, this Member has marveled at the determination of the Korean people to address and speedily resolve the economic difficulties that have caused their financial crisis. The Republic of Korea has made significant strides in reforming, restructuring and opening its economy and breaking the old monopolies that have choked the economy. Also, newly-elected President Kim Dae Jung has committed his administration to making further structural reforms designed to resolve the country's economic and financial problems and restore international confidence in South Korea's economy. Mr. Speaker, H. Res. 459 sends a strong message of the importance our bilateral relationship and our commitment to strengthening this partnership as we enter the 21st century. This Member urges adoption of H. Res. 459.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I thank my colleague, the chairman of the subcommittee, for yielding me this time. I rise today to request the passage of H.R. 1560, the legislation introduced by this Member which authorizes the U.S. Department of the Treasury to mint 200,000 one- dollar coins and 200,000 half-dollar coins to commemorate the bicentennial of the Lewis and Clark expedition. The coins will be of legal tender. In addition, this measure will raise money to defer costs of the bicentennial celebrations. I would like to thank my distinguished colleagues, especially the gentleman from Delaware (Mr. Castle) and the distinguished gentlewoman from California (Ms. Waters) for their effort on H.R. 1560, respectively, as chairperson and ranking member of the Subcommittee on Domestic and International Monetary Policy of the Committee on Banking and Financial Services, and the gentleman from Minnesota (Mr. Vento), who has just spoken. President Thomas Jefferson, eager to explore newly acquired land from the Louisiana Purchase, chose Meriwether Lewis and William Clark to begin the expedition, which came to be called The Corps of Discovery. President Jefferson gave the following directive to Lewis and Clark to, ``explore the Missouri River and such principal streams of it, as by its course and communication with the waters of the Pacific Ocean, whether the Columbia, Oregon, Colorado or any other river, may offer the most direct and practicable water communication across this continent for the purposes of commerce.'' Lewis and Clark departed St. Louis on May 14, 1804 and returned to St. Louis 28 months later on September 23, 1806. Their journey of undaunted courage, recently chronicled in a very popular novel by Steven Ambrose, covered 8,000 miles of the land which now constitutes the States of Illinois, Missouri, Kansas, Nebraska, Iowa, North Dakota, South Dakota, Montana, Idaho, Washington and Oregon, or some parts of them. This expedition was one of the most remarkable and productive military and scientific exploring expeditions in all of American history. This expedition advanced our geographic knowledge of the continent and its beautiful natural resources. In addition, the expedition greatly enhanced amicable relationships and nurtured a mutual friendship and respects at that time between the United States and the various American Indian nations. Furthermore, Sacajawea, the young Native American woman who was a guide and interpreter for the expedition, has been singled out for acknowledgment and admiration. I might say I am particularly looking forward to the bicentennial celebration because it is in my district in Nebraska where Lewis and Clark first met and consulted with the Indian tribes at what was called Council Bluffs, a site which is located near the location later chosen for the historic Fort Atkinson. I would hope we have celebrations on that site in 2004 which would perhaps emphasize the Native Americans' vital role in the Lewis & Clark Expedition. In order for a commemorative coin bill to be considered by the House of Representatives, of course, it is necessary to acquire at least the requisite 290 cosponsors, or greater, for the legislation, and we met that with over 300. I would say that this Member's gathering of those cosponsors was a labor of love and admiration for the Lewis and Clark expedition, and I wish to particularly recognize the contribution of our distinguished colleague, the gentleman from Oregon (Mr. Blumenauer), for his assistance in gaining those cosponsorships. Furthermore, the distinguished Senator from North Dakota, Senator Dorgan, has simultaneously introduced a companion bill on this topic in the Senate, S. 2005. Under H.R. 1560, these coins will include the likenesses of Thomas Jefferson, Meriwether Lewis, and William Clark, and will incorporate appropriate elements recognizing Native American culture. In its 1997 report, the congressionally authorized Citizens Commemorative Coin Advisory Committee recommended commemorating the Lewis and Clark expedition with the coin. This Lewis and Clark commemorative coin legislation assures that the coin can go into circulation in the year 2003. Moreover, the National Lewis and Clark Bicentennial Council, which supports this commemorative coin, is an outgrowth of the Lewis and Clark Trails Foundation, Inc., which was created in 1969 to continue the work of the 1964 congressionally established Lewis and Clark Trail Commission. House Resolution 1560 provides that the net proceeds from the surcharge included in the price of the coin shall be distributed to the National Lewis and Clark Bicentennial Council, two-thirds, and the National Park Service for Lewis and Clark commemorative activities, one-third. This contribution to the Park Service could save taxpayers $1.13 million on currently planned events. The legislation also includes language requiring the Department of the Treasury to take actions necessary to ensure that the minting and issuing of the coin results in no net cost to the U.S. Government. In closing, this Member believes that the courage and resilience of Lewis and Clark and their party, with the assistance of Native Americans along the expedition on both sides of the Continental Divide, left an indelible and lasting mark on the landscape of the United States as we know it today. Lewis and Clark, in 1804, began an expedition into the unknown wilderness of the West. They returned in 1806 with a wealth of knowledge and experience which has been invaluable in the development of the United States both as a country and a people. I anticipate great fanfare and attendance during that 3-to-4-year period. We have already had huge numbers of foreign visitors asking how they can take part of that water trail, and I think this is going to be a remarkable celebration of a truly remarkable event. Therefore, this Member would encourage his colleagues to vote on H.R. 1560, the Lewis and Clark Commemorative Coin bill, and unless I have a signal otherwise, I would like to have a recorded vote for them to do that.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, as demonstrated by the recent tragedy that we witnessed in this building, crazy conspiracy theories can have violent and horrific costs. Accordingly, this Member commends to his colleagues an excellent editorial which appeared in the Omaha World-Herald, on August 5, 1998. Others Fed Gunman's Fantasies A sketchy but disturbing portrait is emerging of Russell E. Weston Jr., the accused gunman in the July 24 U.S. Capitol shootings. He is being described as a mental patient who fell through the cracks, resisted treatment and, somewhere along the way, had his head filled with paranoid claptrap. FBI agents who searched his remote cabin in Montana found guns, ammunition and books about espionage. Family members said Weston maintained an abiding fear of the federal government. He believed that federal agents were spying on him through a neighbor's satellite dish. Authorities were also told that Weston thought the federal government had planted land mines on his property. Documents among his possessions contained references to the Freemen, a group whose members have been involved in confrontations over their insistence that they are not bound by U.S. laws. More than a few people on the fringes of society say they consider the U.S. government evil. Among them are some militia members and radical survivalists whose far-fetched notions can sometimes be heard on late-night talk shows or read on the Internet. At times their ravings seem almost comical. One group, for example, sees sinister implications in the yellow fringe with which some American flags are trimmed. The yellow fringe, if we have it right, is proof that the United States is secretly under martial law. But there's nothing comical when such ideas are pumped into the head of someone whose grasp of reality is less than adequate. Then the result is all too often ugly and violent. Russell Weston spent part of a day in Illinois killing cats. Then he traveled to Washington, where he killed two Capitol police officers in a senseless attack. Certainly the Tim McVeighs of the world--and Russell Weston, if he is found guilty--must be punished for their crimes. But punishing them doesn't excuse the people who concoct and repeat the crazy conspiracy theories that cause the bomb-builders and the shooters to become so agitated. Russell Weston may be a dangerous criminal, or he may be hopelessly ill. Either way, whoever convinced him that the government is the epitome of evil deserves some of the criticism for what happened at the Capitol.

Mr. BEREUTER

Mr. BEREUTER. Mr. Chairman, this Member is pleased to support H.R. 4380, the fiscal year 1999 District of Columbia Appropriations. This Member also wishes to thank the distinguished gentleman from Louisiana (Mr. Livingston), the Chairman of the Appropriations Committee, and the distinguished gentleman from North Carolina (Mr. Taylor), the Chairman of the D.C. Appropriations Subcommittee, as well as the distinguished gentleman from Wisconsin (Mr. Obey), the Ranking Member of the Appropriations Committee, and the distinguished gentleman from Virginia (Mr. Moran), the Ranking Member of the D.C. Appropriations Subcommittee, for including an appropriation of 4 million dollars for the Washington, DC Boys Town Facility. As you may know, Father Flanagan founded Boys Town in 1917 to provide care to homeless, abandoned boys in the Omaha, Nebraska, area. Since then, Boys Town has taken its successful formula of helping troubled and needy children to all party of the country, including Washington, DC. The DC facility opened its doors in 1993, and since then has served hundreds of boys and girls through its short-term emergency shelter, Common Sense Parenting program, recruiting and training foster parents, and by providing long-term residential homes for at-risk youth. The Boys Town method of providing education and care to children had been a proven success nationwide and in the Washington, DC, area, but more help is needed. Because of the large demand in this area, and because other local shelters have recently closed their doors, Boys Town is expanding its DC service to provide assistance to more children who will be able to receive this greatly needed help. The generous amount provided in this appropriations bill will help Boys Town begin to give hundreds of DC children the opportunity to experience a stable, home-like atmosphere where they can learn and prosper. Again, this Member thanks the Chairmen and Ranking Members, as well as all of the members of the Appropriations Committee, for providing Boys Town with these greatly-needed funds.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, this Member rises today to submit the Fourth Quarterly Report of the Speaker's Task Force on the Hong Kong Transition. It has been slightly more than one year since Hong Kong reverted to Chinese sovereignty on July 1, 1997. Prior to that historic event, and at your request, Mr. Speaker, this Member formed the House Task Force on Hong Kong's Transition. In addition to myself as chairman, the Task Force is bipartisanly balanced in its membership, including Representative Howard Berman (D-CA). Representative Sherrod Brown (D-OH), Representative Eni Faleomavaega (D-AS), Representative Alcee Hastings (D-FL), Representative Jay Kim (R-CA), Representative Donald Manzullo (R-IL) and Representative Matt Salmon (R-AZ). To date, the task force has prepared four quarterly reports assessing how the reversion has affected Honk Kong. The fourth report, which I submit today, covers the period of April through June, 1998, during which there was no actual visit to Hong Kong by the Task Force. (A visit had been scheduled during the July 4th district work period, but scheduling difficulties forced cancellation of the visit.) Despite a number of concerns about the ailing economy, as well as concerns in the areas of freedom of expression, the independence of the media, and the protection of intellectual property rights, we continue to describe the situation as ``so far, so good.'' Most notably, Hong Kong held remarkably successful elections for the first post-reversion Legislative Council. Mr. Speaker, this Member submits the Task Force report and asks that it be printed in full in the Record. The Speaker's Task Force on the Hong Kong Transition: Fourth Report, July 23, 1998 (Presented by Hon. Doug Bereuter, Chairman) The following is the fourth quarterly report of the Task Force on the Hong Kong Transition. It follows the first report dated October 1, 1997, the second report dated February 25, 1998, and the third report dated May 22, 1998. This report focuses on events and development relevant to United States interests in Hong Kong between April 1, 1998, and June 30, 1998--the fourth quarter following Hong Kong's reversion to China. It has been one year since Hong Kong reverted to Chinese sovereignty on July 1, 1997. Looking back at those last few weeks of June, 1997, we recall that the reversion was viewed with a mixture of excitement and trepidation. Many observers, both in Hong Kong and abroad, worried aloud that Beijing might be unable to resist the temptation to meddle in Hong Kong's internal affairs, despite China's commitment in the Joint Declaration to ``one-country, two-systems'' and its agreements to grant Hong Kong autonomy over all matters except foreign affairs and defense for fifty years. Skeptics questioned whether Hong Kong would continue its traditions of freedom of expression and were concerned about the apparent roll back in democratization of the new electoral system. Businessmen wondered whether Hong Kong would maintain the rule of law upon which its international commercial prominence is based. Other observers, concerned with security issues, questioned Hong Kong's continued ability to maintain effective export controls. The fourth quarter following revision can briefly be summed up as both ``good news and bad news.'' The good news was that Hong Kong's citizens confounded political pundits by turning out in record numbers for the first post-reversion election of its Legislative Council. The bad news was that the financial crisis which had engulfed much of southeast Asia from mid-1997 finally, unfortunately, made its impact on Hong Kong. Political Participation--A Surprisingly Enthusiastic Populace On May 24, Hong Kong held its first election for its Legislative Council (LegCo) under the new, controversial election law adopted by the post-reversion, Beijing-appointed legislature. The new law rolled back key provisions of election reforms finally instituted by the last British colonial governor, Chris Patten, in 1995. For example, it maintained the original formula of twenty LegCo members to be directly elected by popular vote, thirty to be elected by ``functional constituencies'' (initiated by the British in 1985), and ten to be chosen by an Election Committee. However, the ``functional constituent'' electorate was reduced from approximately 2.7 million voters under the 1995 British reforms to about 180,000 voters. Of course, the widespread view in Congress is that direct election is preferable to functional constituencies and that the members elected by the special Election Commission make the process less than fully democratic. Because of the complex and cumbersome electoral system, many observers predicted voter apathy and a low turnout. Happily, these predications proved wrong. Despite torrential rains, a record 53.3 percent of eligible voters cast ballots, compared to 35,8 percent in 1995. The Democratic Party and its allies won 65 percent of the popular vote, but were held to only 20 of the 60 seats because of the complex elections rules. The Democratic Party alone won 43 percent of the popular vote and will be the largest party in the new LegCo. In effect, Hong Kong's voters have created the first opposition bloc in the history of communist-ruled China. Following the election, seven parties crossing ideological lines and representing 41 of the 60 members of the new legislature agreed on a blueprint to create jobs and revive Hong Kong's ailing economy. In an extraordinary challenge to C.H. Tung's notion of executive-led government, the coalition threatened to block all of the administration's legislation and funding unless it played ball. The two sides averted a showdown by agreeing to a dialogue aimed at finding solutions to Hong Kong's economic troubles. Many Hong Kongers now hope that the high voter turnout and strong showing of the Democrats and their allies will hasten the pace toward full universal suffrage. President Clinton buoyed those hopes during his July 1-3 visit to Hong Kong (the first by a sitting president), when he called for ``more democracy, not less, and faster, not slower, strides toward political freedom.'' Accelerating the pace toward universal suffrage, however, would require amendment of the Basic Law, Hong Kong's mini-constitution, which stipulates that a fully directly elected LegCo will not be considered before the year 2007. Amendment, however, requires approval by both the chief executive and China's National People's Congress, and thus is viewed as highly unlikely. Rule of Law--Freedom of Expression As we have noted in earlier reports, international confidence in Hong Kong is based on the commitment of Hong Kong's authorities to the rule of law inherited from the British. An integral part of this is the ``check'' on the abuse of authority provided by the free expression of opinion. During this quarter, we find again that the people of Hong Kong largely continue to express themselves without restraint. On June 4, for example, more than 16,000 protesters held the first commemoration of the Tiananmen Incident since reversion. While the crowd was lower in number than in 1997, the high turnout belied skeptics who had predicted interference. Similarly, political activists protesting Japan's occupation of the Diaoyu Islands (Senkakus) have operated freely. Hong Kong authorities report that it has not denied any application for a demonstration permit since reversion and that the number of demonstrations has actually increased from an average of 80 per month prior to reversion to between 150 and 160 per month. Hong Kong's media also continues to practice its traditional vibrant style of journalism without overt interference from authorities in Hong Kong or Beijing. Nonetheless, concerns of self-censorship continue. The Hong Kong Journalists Association, in its recently issued annual report, noted that self-censorship was ``nor worse'' than in the year prior to reversion. It noted, however, that concerns were on the rise about the self-censorship of reporting on independence-related activities in Tibet, Taiwan or Xinjiang. Recently, for example, the Western media gave considerable attention to a local Hong Kong television reporter who claimed that his report on the independent movement in Xinjiang was kept off the air for political reasons. This aspect of freedom of expression and how it applies to expressions about certain sovereignty issues in China is especially important because Hong Kong's Legislative Council will soon be considering a measure to define subversion. Moreover, Chief Executive Tung has widely stated that he believes Hong Kong people should not be freely expressing their support for independence for places like Taiwan, Tibet and Xinjiang. Therefore, a crucial test of Hong Kong's adherence to free expression will be whether mere expressions of support for independence for those areas will be punishable under law. Beijing authorities, however, continue to bend over backward to avoid the appearance of direct interference. At the time of Chinese Prime Minister Zhu Rongji's early April visit to France, a senior Chinese foreign minister official rebuked a Hong Kong television reporter accompanying the visit after the reported asked Zhu what he felt about the demonstrators. The subsequent uproar over this perceived threat to press freedom led premier Zhu to publically criticize the Chinese diplomat for having a ``bad attitude.'' The controversy eventually died down. A fair and independent judiciary is another critical element of international confidence in Hong Kong. In general, the Hong Kong judiciary continues to operate independently and without taint of political influence. During the past quarter, we noted no new instances, as we did in the previous quarter, which would call into question the judiciary's independence or its vulnerability to Chinese influence. On a more positive note, the Hong Kong government clarified in April that the first official post-handover human rights report to be submitted to the United Nations by the SAR government will not be amended by Beijing. This report is submitted under the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights. The report will be submitted through Beijing, but will not be subject to Beijing's review. Economic Developments Ironically, the greatest immediate threat to Hong Kong's prosperity stems not from its reversion to China but from the external events of the Asian Financial Crisis. It just posted its second quarter of negative growth following a 2% contraction in the first quarter of 1998. It is now clear that Hong Kong is in a recession for the first time in 13 years. Almost no one (including Hong Kong officials) predicts an early turnaround. This negative growth led to an unemployment rate of 4.5 percent in for the months April-June, a 15 year high, concentrated in the retail, restaurant and transport sectors. Retail sales dropped 16 percent in April over April 1997, due largely to reduced tourism, a marked correction in the asset markets and reduce local consumer demand. Additionally, Hong Kong's real estate bubble has burst and commercial and residential property prices at the end of June were 40% below their bubble-priced highs of 1997, returning to their 1996 levels. The Hang Seng Index has followed the real estate downward slide, falling at one point to 40% below its all time high of August last year. It ended June at 8,543 points. The market did not respond positively to the government's stimulus package (described below), and also remained concerned about the Japanese economy, China's commitment to maintaining the renminbi, and regional economic woes. Finally, Hong Kong's tourism industry has been badly affected by the decline in visitors from the flagging economies of East Asia, and Hong Kong is now projecting a minus six percent growth in tourist arrivals and a decline of eight percent in tourism revenues in 1998. The positive news in Hong Kong is that the Hong Kong Government is responding. Chief Executive Tung proposed a stimulus package of $5.67 billion U.S. dollars in June. The multi-part package is aimed in part at easing the credit and liquidity crunch by immediately exempting interest income earned locally from profits tax and setting up a credit guarantee system for small to medium businesses. The government also suspended all land sales until next March-- thus reducing the downward pressure on the real estate market--while at the same time increasing assistance for new home buyers. It also imposed a freeze on pay raises for top civil servants. The stimulus package will force the highly efficient civil service to wipe out an anticipated budget surplus and to run a deficit of $2.7 billion U.S. dollars in 1998-1999--the largest deficit since the early 1980s. In earlier measures, the government eased travel requirements for travelers from both Taiwan and the mainland in an effort to boost tourism. Confidence in the Hong Kong dollar remained high, with the ratio of Hong Kong dollars to total bank deposits in May unchanged from April's 57.7 percent, and the ratio of foreign currency to total bank deposits ending the month of May at a healthy 42.3 percent. Despite its considerable economic woes, Hong Kong still maintains the third largest holding of foreign currency reserves in the world. With $96.2 billion U.S. dollars, they are behind only Japan and China in that category. Moreover, Hong Kong has not jettisoned its free market ideology and ranks 2d on the competitiveness rankings of the World Economic Forum and 1st in the Heritage Foundation's ranking. Negative economic growth and rising unemployment has put strong pressure on authorities to ``untie`` the ``peg'' that has bound the Hong Kong dollar to the U.S. dollar at HK $7.8 to one U.S. dollar for the past 15 years. Hong Kong authorities have repeatedly assured skeptics that they have both the foreign exchange reserves and the political will to maintain the U.S./Hong Kong dollar linked exchange rate system. Trade Issues While the Asian Financial Crisis has seriously jolted and hurt Hong Kong's economy, it has also highlighted Hong Kong's serious and unhealthy dependence on entreport trade between the United States and China. Entreport trade is one of the few economic areas still registering positive growth as compared, for example, to exports from domestic manufacturing in Hong Kong. For Hong Kong, its reliance on entreport trade is both good and bad. The United States is still growing and buying more and more Chinese manufactured goods. This provides an excellent export market for Hong Kong. Nevertheless, the bad news for Hong Kong is that our current trade deficit with China ($50 billion last year and projected to be $60 billion this year) is politically and economically unsustainable. And if the China trade deficit issue is not addressed by increased market access for U.S. firms to China, then Hong Kong could get hit with collateral damage from a frustrated America and the U.S. Government--even if it does everything right. The pirating of movies, audio and software compact discs continues to be the most serious bilateral trade issue between the United States and Honk Kong. In recent months. Hong Kong has stepped up its anti-piracy enforcement efforts and implemented a new copyright law. The new law, among other things, gives officials greater enforcement capabilities against illicit production facilities. Hong Kong customs authorities, which have had primary jurisdiction for enforcing IPR legislation, were recently joined by Hong Kong's highly respected Independent Commission Against Corruption (ICAC), which combats corruption and triad-related crime. The ICAC in April carried out a ``mega-raid'' that netted over eight million video compact discs in the course of an investigation against one of Hong Kong's most senior customs officials (subsequently charged with tipping off a pirating syndicate about planned raids). Not long after, customs followed with a raid which yielded an additional 2.2 million compact discs. Further productive raids were made in June. Despite these efforts, the intellectual property rights (IPR) situation in Hong Kong remained sufficiently troublesome of warrant its designation by USTR on the Special 301 Watch List for the third year in a row on may 1, 1998. The ongoing IPR problem was demonstrated again when a pirated pre-release version (``beta version'') of ``Windows 98'' appeared on Hong Kong streets well before the official release of the software in the United States. The local media reports that Hong Kong authorities are considering stronger measures to combat piracy, including applying the Organized and Serious Crime Ordinance to violators (which would allow their assets to be seized) and punishing landlords who lease shops to retailers of pirated material. Money laundering also remains a very serious concern in U.S. bilateral relations with Hong Kong. As we have noted in earlier reports, the same favorable factors that make Hong Kong one of Asia's most important financial centers also make it attractive to criminals wishing to conceal the source of their funds through money laundering. It is important that Hong Kong work harder with the international community to improve its laws and enforcement in this vital area. We note, in that regard, that Hong Kong is a member of the Egmont Group (the international group which combats money laundering) and that Taiwan joined in June. Some observers expect Taiwan's inclusion to create a new dynamic in East Asian efforts to fight money laundering. Security and Related Issues There are three primary security related issues with Hong Kong--ship visits, PLA activities and export controls. First, the U.S. Navy continues to enjoy an excellent relationship with Hong Kong in terms of ships visit. With the loss of Subic Bay as a major installation, these port-of-call visits have become extremely important for the effective functioning of our naval forces in East and Southeast Asia. The relationship with Hong Kong port authorities since the reversion has been outstanding. We are unaware of any security problems in the 65 port calls since the reversion. As an added benefit, the resident People's Liberation Army (PLA) officials certainly have developed a better appreciation of the power and flexibility of the U.S. Navy. The second security concern is related to the influence of the PLA and the Chinese defense industries in Hong Kong business. Certainly, there is concern regarding the PLA's surreptitious acquisition of militarily sensitive technologies. We have no evidence to date of direct involvement by PLA entities in Hong Kong (estimated at nearly 200 companies) in acquisition of sensitive technology. Yet to the extent that PLA entities operating in Hong Kong are engaged in arms trading or acquisition of Western technology, Hong Kong's relations with the U.S. will be put at risk. Their activity, or lack thereof, will be an important determinant in future congressional attitudes. The implementation of export controls is a third area of security-related concern. We are pleased to note no new incidents of export control violations to report this quarter. Hong Kong continues to exercise autonomy as a separate customs territory within China and to demonstrate vigorous enforcement of its strict export control regime. United States officials continue to conduct pre-license and post-shipment inspections. Moreover, U.S. and Hong Kong customs officials continue their close cooperation and, in July, will hold the second in the most recent series of consultations on licensing, enforcement and the exchange of information. Macao The Portuguese colony of Macao will revert to Chinese rule on December 20, 1999, after 442 years. Like Hong Kong, this territory of 500,000 people, 95 percent of whom are ethnic Chinese, will become a Special Administrative Region with a ``one country, two systems'' formula for the next 50 years. As we noted in our previous quarterly report, however, a number of the transition issues for Macao are very different from those faced by Hong kong. Unlike Hong Kong, for instance, the legislature elected under colonial rule will remain in place. While U.S. interests in Macao are not nearly as large as those in Hong Kong, they nonetheless require our continued attention. For example, the transhipment of textiles through Macao continues. But primary among our economic concerns is Macao's role as a manufacturing center for pirated goods, particularly pirated compact discs. To date, Macao has yet to develop adequate legislation, enforcement mechanisms and manpower to tackle this problem. Macao also lacks legislation on money laundering. It is in U.S. interests to press Macao's authorities to move forward expeditiously to correct those shortcomings. As we noted in our third quarterly report, Macao's Portuguese administrators have still not made adequate arrangements to replace themselves with local Macanese officials and are well behind where the British were 18 months before the handover of Hong Kong. They have also allowed the law and order situation to deteriorate. Throughout the spring, news reports of gangland slayings and attacks on public officials repeatedly filled the news, seriously affecting Macao's tourism. China and Portugal exchanged frequent barbs accusing each other of contributing to the growing spiral of public violence. Finally, following the early May firebombing of police chief's car, authorities performed a massive crackdown, netting two dozen suspected triad society members, including Macao's most notorious gangster, ``Broken Tooth'' Wan. Local police have now been reinforced by 20 criminal investigation experts from Portugal. We applaud strengthened measures against organized crime. It will be difficult for the territory to complete smooth transition unless it brings the intolerable situation under control. Conclusion The Hong Kong Transition Task Force has ended our previous three quarterly reports with the assessment ``so far, so good.'' This time, we cautiously repeat that assessment, but with a few caveats. On the economic front, we recognize that the external forces affecting Hong Kong are beyond its control and complicate the transition in unexpected and unpredictable ways. We were encouraged by the demonstration of support for democratic institutions shown in the May election and applaud those elements pressing to accelerate the move toward universal suffrage. We continue to be satisfied with the restraint shown by the Chinese government in its handling of Hong Kong, at least to the extent visible to outside observers. We are concerned, however, by what appears to be growing self-censorship, although we admit that the phenomenon of self-censorship is difficult to document or quantify. Undoubtedly, the coming months will bring new challenges to Hong Kong and the region. It is important that the international community and Congress continue to closely monitor developments there.

Mr. BEREUTER

Mr. BEREUTER. Madam Speaker, I thank the gentleman for yielding me this time. I want to commend the two gentlemen from Illinois (Mr. Crane) and (Mr. Ewing) and the gentleman from California (Mr. Matsui) for bringing this important resolution to the floor. I am in strong support of it. It is extremely important for two reasons: First, it puts on notice those foreign countries that restrict access to U.S. agricultural exports that the United States will simply not continue to tolerate formal or disguised barriers to U.S. agriculture imports. Though the United States agriculture trade surplus totaled nearly $57 billion in 1997, it should have been at least 5 billion more. Because countries like China restrict our meat, wheat and citrus imports and the European Union hides behind pseudo phytosanitary and sanitary barriers to U.S. agricultural imports, we, our farmers, that is, are cost a lot of money, about 5 billion at least. Mr. Speaker, Ambassador Carla Hills, former USTR, and President George Bush nearly imposed hundreds of millions of dollars in additional tariffs on European gourmet products sold in the United States because the European Union would not agree to reduce export subsidies under the Uruguay Round trade negotiations. That near trade war ultimately led to the Blair House agricultural trade accord and eventually the creation of the World Trade Organization. Ambassador Hills and the President, President Bush, proved, through their proposed 301 trade action, that trade liberalization often only occurs when tough trade sanctions are taken or credibly threatened. It is an important lesson that Ambassador Barshefsky followed in her intellectual property rights action against the People's Republic of China, and it is a lessen we may have to revisit again. Currently many foreign countries necessarily cling to protectionist policies in agriculture while reducing trade barriers in other sectors. The United States, as one of the world's most competitive agricultural exporters, cannot stand by while foreign countries deny our farmers the ability to sell their products. Therefore, Madam Speaker, this resolution is also important because it tells the USTR that it must use all conceivable remedies to open foreign markets to U.S. agriculture exports. Mr. Speaker, this Member rises in strong support of H. Con. Res. 213 and this Member would like to commend the two distinguished gentlemen from Illinois (Chairman Crane and Chairman Ewing) and the gentleman from California (Mr. Matsui) for bringing this important resolution to the floor. H. Con. Res. 213 is extremely important for two reasons. First, it puts on notice those foreign countries that restrict access to U.S. agricultural exports that the United States will simply not continue to tolerate formal or disguised barriers to U.S. agricultural imports. Though the United States agricultural trade surplus totalled approximately $57 billion in 1997, it should have been at least $5 billion more because countries like China restrict our meat, wheat, and citrus imports and the European Union hides behind pseudo phytosanitary and sanitary barriers to U.S. agricultural imports. Their actions cost American farmers approximately $5 billion in annual sales. Mr. Speaker, Ambassador Carla Hills, the former USTR, and President George Bush nearly imposed hundreds of millions in additional tariffs on European gourmet products sold in the United States because the European Union would not agree to reduce export subsidies under the Uruguay Round trade negotiations. That near trade war ultimately led to the Blair House agricultural trade accord and eventually the creation of the World Trade Organization. Ambassador Hills and President Bush proved through their proposed 301 trade action that trade liberalization often only occurs when tough trade sanctions are taken or credibly threatened. It is an important lesson that Ambassador Barshefsky followed in her intellectual property action against the People's Republic of China, and it is a lesson that we may have to revisit again. Currently, many foreign countries necessarily cling to protectionist policies in agriculture while reducing trade barriers in other sectors. The United States, as one of the world's most competitive agricultural exporters, cannot stand by while foreign countries deny our farmers the ability to sell their products. Therefore, Mr. Speaker, this resolution is also important because it tells the United States Trade Representative that it must use all conceivable remedies to open foreign markets to U.S. agricultural exports. That includes not ``cherry picking,'' or negotiating trade liberalization in individual sectors, while undermining our ability to have a cross-sectoral, multilateral trade negotiation that drastically reduces barriers to agricultural trade. It also includes recognizing that we must use access to our own market as leverage to gain market access for U.S. agricultural exports worldwide. We cannot, for example, continue to see the European Union ignore science and impose its attitudes on hormones as a phoney barrier against beef exports from my state and our Nation. This Member urges the United States Trade Representative to negotiate forcefully on behalf of U.S. agriculture as we approach the 1999 agricultural negotiations through the World Trade Organization. This Member urges his colleagues to support H. Con. Res. 213.

Mr. BEREUTER

Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Brady), a distinguished member of the committee.

Mr. BEREUTER. Mr. Speaker, I thank the gentleman for his comments which are very relevant. As a Member from Texas, he is well aware of these problems. Mr. Speaker, I reserve the balance of my time.