Alfonse D’Amato

Mr. D'AMATO

Mr. D'AMATO. I am delighted. I ask unanimous consent that Senator Murkowski be added as a cosponsor.

Mr. D'AMATO. Mr. President, today I introduce the Foreign Bank Enforcement Act of 1996. This legislation proposes a number of important modifications to statutes governing the activities of foreign banks operating in the United States. It reflects the recommendations of Federal and State bank regulators. It will enhance the ability of U.S. regulators to oversee the 275 foreign banks from 61 countries now operating in the United States. The world's financial system is increasingly interconnected, and foreign banks operate in the United States to a greater degree than ever before. These banks now hold more than $1 trillion in U.S. banking assets and make approximately 30 percent of the amount of all loans to U.S. businesses. The integrity of the U.S. financial system is one of our most important national assets. This asset is threatened whenever any bank-- domestic or foreign--operating on our shores engages in misconduct or fraud. It is therefore imperative that U.S. bank regulators possess all of the tools necessary to supervise the U.S. operations of foreign banks with the same care and attention as those of our domestic banks. Over the past several years, the activities of rogue traders at banks and securities firms have shaken world financial markets. Last year, the $1.3 billion in hidden losses from derivatives trading by Nicholas Leeson in Singapore brought down the venerable Barings Bank in Great Britain. In September 1995--and much closer to home--Federal bank regulators learned that Daiwa Bank's New York branch had incurred losses of $1.1 billion from the unauthorized trading activities of just one employee, Mr. Toshihide Iguchi, over a period of 10 years. Mr. President, the Daiwa matter is particularly troubling. Although Daiwa senior management learned of these hidden trading losses of $1.1 billion in July 1995, they concealed the losses from U.S. bank regulators for almost 2 months. Even worse, Daiwa senior management directed Mr. Iguchi to continue his fraudulent transactions during July and August 1995 to avoid detection of the losses. In November 1995, Federal and State bank regulators took the stern, but entirely appropriate step, of terminating all of Daiwa Bank's operations in the United States. The bank also paid a criminal fine of $340 million, and two of its officials entered guilty pleas to criminal offenses. In the wake of the Daiwa scandal, I asked the Federal Reserve to conduct a full inquiry into this matter and to examine our existing scheme for regulating the U.S. activities of foreign banks. The Banking Committee also held a hearing in November 1995 on Daiwa and related matters at which Federal and State bank regulators testified. Mr. President, it is clear that we must learn from the Daiwa scandal. Over the past year, the Banking Committee has worked with Federal and State regulators, including the Federal Reserve and the New York State Banking Department, to identify any limitations in the existing laws governing the U.S. operations of foreign banks. After reviewing the recommendations of Federal and State bank regulators, I today introduce the Foreign Bank Enforcement Act. This legislation would make the following five changes to the statutory scheme now governing the U.S. operations of foreign banks. First, it would clarify that the Federal Reserve possesses the statutory authority to set conditions for the termination of a foreign bank's activities in the United States. Under the International Banking Act of 1978, the Federal Reserve may order the complete termination of a foreign bank's branches and agencies in the U.S. This amendment would make explicit that the Federal Reserve also may issue, on an involuntary basis, a termination order that sets specific conditions on the termination of a foreign bank's U.S. activities. These conditions might include requiring the terminated bank to maintain the records of its U.S. activities in the U.S., to make its officials available in the U.S. to facilitate U.S. investigatory efforts, and to escrow funds in the U.S. to meet contingent liabilities after the foreign bank has left the U.S. Second, this bill would clarify the authority of federal banking agencies to remove convicted felons from the banking industry. Under Section 8(g) of the Federal Deposit Insurance Act, the Federal Reserve and other Federal banking agencies may suspend and permanently bar from the banking industry persons convicted of certain felonies. This amendment would make clear that Federal banking agencies possess this authority with regard to persons who are not actually employed by a banking organization. Third, the Foreign Bank Enforcement Act would expand the current automatic bar on the employment of persons convicted of a crime involving dishonesty, breach of trust, or money laundering. Under Section 19 of the Federal Deposit Insurance Act, a person convicted of such crimes may not work for an insured depository institution without the approval of the Federal Deposit Insurance Corporation; it does not expressly bar the future employment of a convicted person by a bank holding company, an Edge or Agreement corporation, or a U.S. branch or agency of a foreign bank. For instance, under the current Section 19, Mr. Iguchi, the senior Daiwa official who caused the bank's $1.1 billion trading loss, would not automatically be barred from working for another U.S. branch or agency of a foreign bank. This amendment would close this loophole. Fourth, this legislation would increase the ability of the federal bank regulators to obtain from foreign bank supervisors critical examination and supervision-related information concerning foreign banks operating in the U.S. Specifically, it would amend the International Banking Act of 1978 to provide explicitly that federal bank regulators may keep confidential critical bank-examination information obtained from foreign supervisors. This provision would not protect such information from disclosure to Congress or to the courts and is similar to a provision in the securities laws that allows the SEC to maintain the confidentiality of information received from a foreign securities authority. Finally, this bill would authorize Federal courts, upon a motion of a U.S. Attorney, to issue orders authorizing the disclosure of matters occurring before a grand jury to State bank regulators. Under current law, such disclosures may be made only to Federal bank regulators, and, as the Daiwa matter demonstrates, State bank regulators play an important role in the supervision of foreign banks operating in the U.S. Mr. President, we must not allow loopholes in existing law to erode the confidence of the American people in the integrity of our financial system. Congress must provide Federal and State bank regulators with all of the tools necessary to supervise fully the U.S. operations of foreign banks. The Foreign Bank Enforcement Act proposes a number of narrow, but important, changes in existing law. It reflects the recommendations of the Federal Reserve and other bank regulators. I urge the swift approval of this important legislation. Mr. President, I ask unanimous consent that additional material be printed in the Record.

Mr. D'AMATO. Mr. President, on behalf of myself and 64 colleagues, I rise today to introduce the Jackie Robinson Commemorative Coin Act. It is appropriate and important that the Congress honor Jackie Robinson, a true American hero who rose above prejudice and segregation to become a pillar of our national pastime--and a leader in the fight for racial equality. The bill would authorize the U.S. Mint to commemorate the 50th anniversary of Jackie Robinson's historic and heroic act of breaking baseball's color barrier. Mr. President, the life story of this great American citizen is so uplifting. It is a story of a pioneer, a man of many many, ``firsts.'' As a young boy growing up in New York, I was consumed by baseball like so many others. I have a personal connection to Jackie Robinson and the legendary Brooklyn Dodgers. Those were certainly the banner days for baseball, in New York and elsewhere. Jackie Robinson, one of the all stars with the legendary Brooklyn Dodgers, stood as tall as one of New York's skyscrapers themselves. Jackie Robinson's courage, quiet determination and competitive spirit were evident throughout his life. At UCLA, Jackie Robinson was the first four-letter man excelling at football, basketball, track, and baseball. Although he was far along the path to a promising future in sports, Jackie Robinson had to leave college after 3 years to support his mother. He realized that coming to his mother's aid in a time of need was a more compelling priority. Jackie Robinson was a giving, unselfish man, and devoted son. In 1942, Jackie Robinson faced another noble calling. He joined the Army to serve his country during World War II. In his 3 years of service, Jackie rose to the rank of 2d lieutenant and attended Officers Candidate School. The atmosphere of segregation in the Army inspired him to forge ahead and begin a quiet but lifelong determined effort to fight discrimination. After the Army, Jackie Robinson returned to his true dream--playing baseball. Despite the color barrier, Jackie Robinson persisted. Jackie Robinson experienced the ugly face of bigotry firsthand playing for the Negro Baseball League in 1945. It was commonplace to have hotel and restaurant doors shut in his face. He withstood vicious taunts and threats from fans. Even some of his own teammates would not acknowledge him. But those affronts and experiences did not diminish Jackie Robinson's spirit. Eventually, his excellence and determination prevailed. In 1946 he joined the Montreal Royals minor-league team in the Dodgers organization. That same year, he was recognized as the MVP of the league, the first of many baseball honors. In 1947, Jackie Robinson became prominent in the history of our Nation and its great pastime. He penetrated the color barrier in baseball when he was brought up to play for the Brooklyn Dodgers. This breakthrough reverberated throughout all professional sports and is acknowledged today as a watershed event in the continuing struggle for racial equality. Mr. President, in late 1947, Jackie Robinson was named Rookie of the Year, actually the first so-named in the major leagues. Then in 1949 he was named MVP of the National League. Throughout his 11-year career with the Dodgers, Jackie Robinson won batting titles, set fielding records, and was feared as a base stealer. Another first occurred in 1962 when Jackie Robinson became the first African-American to be inducted into the Baseball Hall of Fame located in Cooperstown, NY. Mr. President, for many of us, especially, those of my generation, Jackie Robinson is synonymous with baseball. He dazzled and electrified crowds with his energetic performances on the field. Time and time again, he brought fans to their feet. At the same time, he united a whole city with his personal enthusiasm, and baseball excellence. But, Jackie Robinson, the man transformed his greatness on the baseball diamond to greatness in his community, hitting homeruns for his fellow man. In many ways, Jackie Robinson united our Nation through all of his achievements. After retiring from professional baseball, he entered a life of service to his community. He donned the many hats of businessman, community leader, and civil rights activist. His dedication to bringing down social barriers thrived. He provided affordable housing to low-income families through the Jackie Robinson Development Corp. He helped spur economic development in Harlem by founding the Freedom National Bank, now a prosperous financial institution. As vice president for personnel at a well-known fast-food chain, he championed the cause of increasing benefits for workers and their families. Mr. President, Jackie Robinson remains an inspiration to this Nation and a commemorative coin will serve as a fitting tribute to this great man. In the spirit of honoring our greatest American heroes, I am introducing this bill which would authorize silver dollar commemorative coins to be minted in 1997 celebrating the 50th anniversary of breaking the color barrier in American baseball by Jackie Robinson. Once the Mint has recovered its costs, profits would go to the Jackie Robinson Foundation, a public, not-for-profit organization. The focus of the Jackie Robinson Foundation is to make educational and leadership development opportunities available to minority youths of limited financial resources. Full 4-year college scholarships are awarded to those youths who meet the selection criteria of the foundation. These criteria are based on academic achievement, community service, leadership potential, and financial need. The successes of the foundation's primary goal are undeniable. Since its inception, over 400 young adults from all parts of this Nation have benefited from participation with most students obtaining degrees in engineering, science and related fields. And furthermore, the graduation rate of the foundation participants is 92 percent, one of the best in our country. The Jackie Robinson Foundation was established by Mrs. Rachel Robinson a year following Jackie Robinson's untimely death. She has worked tirelessly to keep his inspiration alive through her gentle strength and relentless determination. Jackie Robinson once said of his wife of 26 years--``strong, loving, gentle, and brave, never afraid to either criticize or comfort.'' Rachel Robinson is truly an incredible woman. I can attest to that. Mr. President, I want to thank my colleague from New York, Floyd Flake for his leadership and dedication in this matter. I would also like to extend a deep appreciation to all cosponsors for their incredible support in realizing this effort. I owe a special debt of gratitude to the Honorable Robert Rubin, Secretary of the Treasury and Philip Diehl, Director of the U.S. Mint for their support. Mr. President, I ask for unanimous consent that the text of the bill be printed in the Record.

Mr. D'AMATO

Mr. D'AMATO. I am delighted. I ask unanimous consent that Senator Murkowski be added as a cosponsor.

Mr. D'AMATO. Mr. President, on behalf of myself and 64 colleagues, I rise today to introduce the Jackie Robinson Commemorative Coin Act. It is appropriate and important that the Congress honor Jackie Robinson, a true American hero who rose above prejudice and segregation to become a pillar of our national pastime--and a leader in the fight for racial equality. The bill would authorize the U.S. Mint to commemorate the 50th anniversary of Jackie Robinson's historic and heroic act of breaking baseball's color barrier. Mr. President, the life story of this great American citizen is so uplifting. It is a story of a pioneer, a man of many many, ``firsts.'' As a young boy growing up in New York, I was consumed by baseball like so many others. I have a personal connection to Jackie Robinson and the legendary Brooklyn Dodgers. Those were certainly the banner days for baseball, in New York and elsewhere. Jackie Robinson, one of the all stars with the legendary Brooklyn Dodgers, stood as tall as one of New York's skyscrapers themselves. Jackie Robinson's courage, quiet determination and competitive spirit were evident throughout his life. At UCLA, Jackie Robinson was the first four-letter man excelling at football, basketball, track, and baseball. Although he was far along the path to a promising future in sports, Jackie Robinson had to leave college after 3 years to support his mother. He realized that coming to his mother's aid in a time of need was a more compelling priority. Jackie Robinson was a giving, unselfish man, and devoted son. In 1942, Jackie Robinson faced another noble calling. He joined the Army to serve his country during World War II. In his 3 years of service, Jackie rose to the rank of 2d lieutenant and attended Officers Candidate School. The atmosphere of segregation in the Army inspired him to forge ahead and begin a quiet but lifelong determined effort to fight discrimination. After the Army, Jackie Robinson returned to his true dream--playing baseball. Despite the color barrier, Jackie Robinson persisted. Jackie Robinson experienced the ugly face of bigotry firsthand playing for the Negro Baseball League in 1945. It was commonplace to have hotel and restaurant doors shut in his face. He withstood vicious taunts and threats from fans. Even some of his own teammates would not acknowledge him. But those affronts and experiences did not diminish Jackie Robinson's spirit. Eventually, his excellence and determination prevailed. In 1946 he joined the Montreal Royals minor-league team in the Dodgers organization. That same year, he was recognized as the MVP of the league, the first of many baseball honors. In 1947, Jackie Robinson became prominent in the history of our Nation and its great pastime. He penetrated the color barrier in baseball when he was brought up to play for the Brooklyn Dodgers. This breakthrough reverberated throughout all professional sports and is acknowledged today as a watershed event in the continuing struggle for racial equality. Mr. President, in late 1947, Jackie Robinson was named Rookie of the Year, actually the first so-named in the major leagues. Then in 1949 he was named MVP of the National League. Throughout his 11-year career with the Dodgers, Jackie Robinson won batting titles, set fielding records, and was feared as a base stealer. Another first occurred in 1962 when Jackie Robinson became the first African-American to be inducted into the Baseball Hall of Fame located in Cooperstown, NY. Mr. President, for many of us, especially, those of my generation, Jackie Robinson is synonymous with baseball. He dazzled and electrified crowds with his energetic performances on the field. Time and time again, he brought fans to their feet. At the same time, he united a whole city with his personal enthusiasm, and baseball excellence. But, Jackie Robinson, the man transformed his greatness on the baseball diamond to greatness in his community, hitting homeruns for his fellow man. In many ways, Jackie Robinson united our Nation through all of his achievements. After retiring from professional baseball, he entered a life of service to his community. He donned the many hats of businessman, community leader, and civil rights activist. His dedication to bringing down social barriers thrived. He provided affordable housing to low-income families through the Jackie Robinson Development Corp. He helped spur economic development in Harlem by founding the Freedom National Bank, now a prosperous financial institution. As vice president for personnel at a well-known fast-food chain, he championed the cause of increasing benefits for workers and their families. Mr. President, Jackie Robinson remains an inspiration to this Nation and a commemorative coin will serve as a fitting tribute to this great man. In the spirit of honoring our greatest American heroes, I am introducing this bill which would authorize silver dollar commemorative coins to be minted in 1997 celebrating the 50th anniversary of breaking the color barrier in American baseball by Jackie Robinson. Once the Mint has recovered its costs, profits would go to the Jackie Robinson Foundation, a public, not-for-profit organization. The focus of the Jackie Robinson Foundation is to make educational and leadership development opportunities available to minority youths of limited financial resources. Full 4-year college scholarships are awarded to those youths who meet the selection criteria of the foundation. These criteria are based on academic achievement, community service, leadership potential, and financial need. The successes of the foundation's primary goal are undeniable. Since its inception, over 400 young adults from all parts of this Nation have benefited from participation with most students obtaining degrees in engineering, science and related fields. And furthermore, the graduation rate of the foundation participants is 92 percent, one of the best in our country. The Jackie Robinson Foundation was established by Mrs. Rachel Robinson a year following Jackie Robinson's untimely death. She has worked tirelessly to keep his inspiration alive through her gentle strength and relentless determination. Jackie Robinson once said of his wife of 26 years--``strong, loving, gentle, and brave, never afraid to either criticize or comfort.'' Rachel Robinson is truly an incredible woman. I can attest to that. Mr. President, I want to thank my colleague from New York, Floyd Flake for his leadership and dedication in this matter. I would also like to extend a deep appreciation to all cosponsors for their incredible support in realizing this effort. I owe a special debt of gratitude to the Honorable Robert Rubin, Secretary of the Treasury and Philip Diehl, Director of the U.S. Mint for their support. Mr. President, I ask for unanimous consent that the text of the bill be printed in the Record.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, today I introduce the Foreign Bank Enforcement Act of 1996. This legislation proposes a number of important modifications to statutes governing the activities of foreign banks operating in the United States. It reflects the recommendations of Federal and State bank regulators. It will enhance the ability of U.S. regulators to oversee the 275 foreign banks from 61 countries now operating in the United States. The world's financial system is increasingly interconnected, and foreign banks operate in the United States to a greater degree than ever before. These banks now hold more than $1 trillion in U.S. banking assets and make approximately 30 percent of the amount of all loans to U.S. businesses. The integrity of the U.S. financial system is one of our most important national assets. This asset is threatened whenever any bank-- domestic or foreign--operating on our shores engages in misconduct or fraud. It is therefore imperative that U.S. bank regulators possess all of the tools necessary to supervise the U.S. operations of foreign banks with the same care and attention as those of our domestic banks. Over the past several years, the activities of rogue traders at banks and securities firms have shaken world financial markets. Last year, the $1.3 billion in hidden losses from derivatives trading by Nicholas Leeson in Singapore brought down the venerable Barings Bank in Great Britain. In September 1995--and much closer to home--Federal bank regulators learned that Daiwa Bank's New York branch had incurred losses of $1.1 billion from the unauthorized trading activities of just one employee, Mr. Toshihide Iguchi, over a period of 10 years. Mr. President, the Daiwa matter is particularly troubling. Although Daiwa senior management learned of these hidden trading losses of $1.1 billion in July 1995, they concealed the losses from U.S. bank regulators for almost 2 months. Even worse, Daiwa senior management directed Mr. Iguchi to continue his fraudulent transactions during July and August 1995 to avoid detection of the losses. In November 1995, Federal and State bank regulators took the stern, but entirely appropriate step, of terminating all of Daiwa Bank's operations in the United States. The bank also paid a criminal fine of $340 million, and two of its officials entered guilty pleas to criminal offenses. In the wake of the Daiwa scandal, I asked the Federal Reserve to conduct a full inquiry into this matter and to examine our existing scheme for regulating the U.S. activities of foreign banks. The Banking Committee also held a hearing in November 1995 on Daiwa and related matters at which Federal and State bank regulators testified. Mr. President, it is clear that we must learn from the Daiwa scandal. Over the past year, the Banking Committee has worked with Federal and State regulators, including the Federal Reserve and the New York State Banking Department, to identify any limitations in the existing laws governing the U.S. operations of foreign banks. After reviewing the recommendations of Federal and State bank regulators, I today introduce the Foreign Bank Enforcement Act. This legislation would make the following five changes to the statutory scheme now governing the U.S. operations of foreign banks. First, it would clarify that the Federal Reserve possesses the statutory authority to set conditions for the termination of a foreign bank's activities in the United States. Under the International Banking Act of 1978, the Federal Reserve may order the complete termination of a foreign bank's branches and agencies in the U.S. This amendment would make explicit that the Federal Reserve also may issue, on an involuntary basis, a termination order that sets specific conditions on the termination of a foreign bank's U.S. activities. These conditions might include requiring the terminated bank to maintain the records of its U.S. activities in the U.S., to make its officials available in the U.S. to facilitate U.S. investigatory efforts, and to escrow funds in the U.S. to meet contingent liabilities after the foreign bank has left the U.S. Second, this bill would clarify the authority of federal banking agencies to remove convicted felons from the banking industry. Under Section 8(g) of the Federal Deposit Insurance Act, the Federal Reserve and other Federal banking agencies may suspend and permanently bar from the banking industry persons convicted of certain felonies. This amendment would make clear that Federal banking agencies possess this authority with regard to persons who are not actually employed by a banking organization. Third, the Foreign Bank Enforcement Act would expand the current automatic bar on the employment of persons convicted of a crime involving dishonesty, breach of trust, or money laundering. Under Section 19 of the Federal Deposit Insurance Act, a person convicted of such crimes may not work for an insured depository institution without the approval of the Federal Deposit Insurance Corporation; it does not expressly bar the future employment of a convicted person by a bank holding company, an Edge or Agreement corporation, or a U.S. branch or agency of a foreign bank. For instance, under the current Section 19, Mr. Iguchi, the senior Daiwa official who caused the bank's $1.1 billion trading loss, would not automatically be barred from working for another U.S. branch or agency of a foreign bank. This amendment would close this loophole. Fourth, this legislation would increase the ability of the federal bank regulators to obtain from foreign bank supervisors critical examination and supervision-related information concerning foreign banks operating in the U.S. Specifically, it would amend the International Banking Act of 1978 to provide explicitly that federal bank regulators may keep confidential critical bank-examination information obtained from foreign supervisors. This provision would not protect such information from disclosure to Congress or to the courts and is similar to a provision in the securities laws that allows the SEC to maintain the confidentiality of information received from a foreign securities authority. Finally, this bill would authorize Federal courts, upon a motion of a U.S. Attorney, to issue orders authorizing the disclosure of matters occurring before a grand jury to State bank regulators. Under current law, such disclosures may be made only to Federal bank regulators, and, as the Daiwa matter demonstrates, State bank regulators play an important role in the supervision of foreign banks operating in the U.S. Mr. President, we must not allow loopholes in existing law to erode the confidence of the American people in the integrity of our financial system. Congress must provide Federal and State bank regulators with all of the tools necessary to supervise fully the U.S. operations of foreign banks. The Foreign Bank Enforcement Act proposes a number of narrow, but important, changes in existing law. It reflects the recommendations of the Federal Reserve and other bank regulators. I urge the swift approval of this important legislation. Mr. President, I ask unanimous consent that additional material be printed in the Record.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I thank the Chair. (The remarks of Mr. D'Amato pertaining to the introduction of S. 2136 are located in today's Record under ``Statements on Introduced Bills and Joint Resolutions.'')

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I submit a concurrent resolution which addresses a number of distinct, but closely related, property issues. It follows up on work already done by the Helsinki Commission, which held a hearing on this subject on July 18, 1996. This same concurrent resolution is being submitted today in the House by the Commission's distinguished Chairman, my good friend and colleague from New Jersey, Congressman Chris Smith. It is cosponsored by the majority of the Commission. The substance of this concurrent resolution has been discussed with the Administration and parallels and supports the work being done by Under Secretary of Commerce for International Trade Stuart E. Eizenstat, who also serves as the U.S. Department of State Special Envoy for Property Claims in Central and Eastern Europe. I strongly believe that there must be a full, complete and final accounting of the assets of Holocaust victims that have been wrongfully held by Swiss--and possibly other banks--for some five decades now. Those records must be opened, and the stolen assets returned to their rightful heirs. This concurrent resolution addresses that issue. It also addresses the compelling situation of Holocaust survivors in Central and Eastern Europe. Many of these people, unlike their counterparts in Western Europe, were denied the chance to receive any compensation for their suffering or to receive the return of properties stolen by the Nazis when the iron curtain closed, leaving them at the mercy of new dictatorships. This concurrent resolution recognizes the urgent need for Jewish communal properties to be restored to their rightful owners, to help give these survivors the means to live out their final days in dignity. Finally, this concurrent resolution speaks to the difficult and complex process underway in many post-Communist countries in Central and Eastern Europe and the former Soviet Union. Some countries have already taken steps to return property or provide compensation for property wrongly confiscated by Communist regimes. I commend those countries for their efforts. At the same time, I am deeply troubled that some restitution or compensation laws have discriminated against American citizens, people who lost both their property and their citizenship when they sought refuge in this country, fleeing Communist persecution. To exclude these people from efforts to right past wrongs pours salt on an open wound. I urge my colleagues to join me in supporting this concurrent resolution, and in sending a message that these injustices must be remedied before the passage of time carries the victims beyond our mortal abilities to offer them some recompense for their suffering. While restoration of property ownership or compensation for its wrongful confiscation can never right the terrible wrongs done to the victims by their Nazi, fascist, and communist oppressors, it can go some way toward balancing the scales. That is what this concurrent resolution is about and why it deserves our support.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, the Senate completed action on the conference report for the Department of Transportation and related agencies appropriations bill yesterday, voting out the legislation 85 to 14. That bill, H.R. 3675, contained funding for the various transportation programs that this Nation undertakes--aviation, Coast Guard, highways, railroads, and transit. All in all, H.R. 3675 is a good bill for the United States and for the State of New York. However, Mr. President, as occurs in most pieces of legislation, it is not entirely perfect. In this respect, I must raise issue with a provision that was contained in the final version of this bill that will have serious adverse consequences on the State of New York. When we considered this bill on the Senate floor in July, an amendment was debated and ultimately adopted that would require the Secretary of Transportation and the Secretary of the Treasury to investigate and report back to the Congress on the impact of and need to remedy an accounting error that was made in 1994 with respect to the crediting of receipts to the Highway Trust Fund. If uncorrected, this error had the potential to change the Federal highway obligation authority in a manner that would reconfigure highway funding for a number of States, allocating more dollars to States where the dollars were not supposed to go and away from States where the dollars were supposed to be allocated. The amendment that passed in the Senate corrected this error. During the conference with the House of Representatives, this provision was not supported by a majority of conferees and was subsequently dropped. Even efforts to hold States harmless for the coming fiscal year because of this error were not agreed upon. Because of this, we are back where we started before the adoption of the amendment, with this accounting glitch in place and certain States in our Nation facing the denial of funding they deserve. Unfortunately, New York is one of those States that will be denied its rightful amount of highway funding. The calculations that I have seen indicate that this uncorrected error will cost New York more than $100 million in Federal highway dollars that it should rightfully receive. This is not a small amount of money by any stretch. It is roughly 11 percent of the total highway funding New York should receive in the coming fiscal year. However, because of this accounting error, and because efforts to correct this error were not agreed upon in conference, those who travel New York's roadways will bear the brunt of this 11-percent cut. It would be an understatement to say that I am displeased that this simple error was not able to be corrected in order to prevent any adverse impact on highway users in New York. However, the members of the conference committee were not inclined to accept the Senate amendment. While I do not agree with the decision by the conferees it is by no means an issue that has been solved. In 1997, the Congress will be facing a multitude of issues involving the reauthorization of the Intermodal Surface Transportation Efficiency Act [ISTEA]. Issues involving funding allocations for the individual States will most assuredly be heavily discussed in the course of negotiations over any reauthorization bill. Perhaps this particular issue may need to be revisited in the context of that reauthorization. In the meantime, it still demands the attention and the action of the administration. Therefore, I intend to work with my colleagues whose States are similarly impacted as New York in an effort to remedy this Treasury Department accounting error.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I rise today to discuss the recent agreement of the Swiss to investigate the issue of Jewish money, as well as looted assets that were deposited in Swiss banks before and during the war. The Swiss, in responding to overwhelming international pressure have agreed to yet another commission to investigate the issue. I must state that we have heard this before. We were told at the end of the WWII that the Swiss would look for Jewish assets and they responded by saying that they found nothing. Yet in 1949, the Swiss concluded an agreement with the Polish Government to turn over the assets of heirless, largely meaning Jewish assets. The problem was that they made this agreement with the Communist-run Polish Government and not the Jewish people to whom the assets belonged. According to their own sources, the Swiss had no laws on the books providing for this. Nevertheless, they did the same thing the following year with the Communist-run Hungarian and Czech Governments. While saying all along they had no Jewish assets in Switzerland, the Swiss nevertheless found enough to conclude agreements with other governments to turn over funds that did not belong to them. Clearly they have not been forthcoming with the world. The Swiss again investigated the subject in the early 1960's. Again, they found money, some $2 million. Yet, all along there were public statements to the effect that little money would be found. In 1995, another search was made and some $32 million in dormant accounts were found. Again, Swiss banks and Swiss Government officials said this proves that there was not a lot of money left over. One must ask oneself, however, if the Swiss keep saying that there is no Jewish money in Switzerland from the 1930's and 1940's, why then do they keep finding money? Clearly the answer must be that they are in fact sitting on great sums of money and are letting it come out in drips and drabs, only in response to immense international pressure. They seem to think that they can outlast us. Well, they are wrong. They can create commission after commission to study the issue, but the only way to solve the issue once and for all is to open their books, entirely, and put this all to rest. Stonewalling will not work, we understand what they are trying to do. Enough is enough. Open the books now.

Mr. D'AMATO

Mr. D'AMATO. I thank my friend. While there has been an overall reduction from the budget request for the environmental restoration and waste management nondefense account, I would like to get an understanding from the chairman as to the priority the committee places on meeting the vitrification and closure schedule at the West Valley demonstration project in western New York. The project has been able to maintain schedule and progress while accommodating budget reductions over the past 6 years. The project began pouring glass this summer and is currently poised to complete this phase on or ahead of schedule. The project is also at a crucial juncture regarding the completion of the work necessary to ultimately close the site. Would the chairman agree that the Department of Energy should spend the funds from this account necessary to keep this project on schedule?

Mr. D'AMATO. Mr. President, will the distinguished chairman of the subcommittee yield for a question?

Mr. D'AMATO. I thank the chairman. Animas-Laplata Participating Project

Mr. D'AMATO

Mr. D'AMATO. Mr. President, today I am pleased to join my friend and colleague, Senator Pressler, as an original cosponsor of the International Tax Simplification for American Competitiveness Act. This important bill will begin the process of dismantling tax barriers that hinder American businesses who find themselves in an increasingly competitive global marketplace. Although American firms have succeeded to date in spite of the current complexity and unfairness of our international tax regime, the added costs imposed by our tax rules take their toll. We must move to identify and eliminate those harmful and unnecessary provisions that stand in the way of a continuing leadership role for American business in world markets. New York is home to many industries that are driven by global competition. Industries like the securities and banking industries, computer and other high technology firms, and countless other businesses in my State must have fair treatment at home in order to compete effectively abroad. For example, during the last decade the securities industry has been transformed from a largely domestic- oriented industry to an industry in which U.S. and international financial institutions compete against each other in the principal capital markets around the world. U.S.-based securities firms are recognized leaders in their industry worldwide. Maintaining this position is important not only for these firms, but also for their U.S. employees and for their U.S. customers who benefit from the innovative products and services offered by U.S.-based securities firms. Unfortunately, Mr. President, U.S. tax law has failed to keep pace with the rapid changes in the world economy. The international provisions of the Internal Revenue Code were last substantially debated and revised in 1986. And in many cases, our foreign competitors operate under simpler, fairer, and more logical tax regimes. This mismatch between commercial reality and the U.S. Tax Code creates a structural bias against the international activities of U.S. companies. This cannot and should not be allowed to continue. The International Tax Simplification for American Competitiveness Act acknowledges and addresses a number of problems our tax laws create for American businesses facing increasing global competition. This bill represents an important step toward correcting complexities of the antideferral rules under subpart F, including their inappropriate application to active financing income of bona fide financial institutions and the current definition of investment in U.S. property, and excessive limitations on the use of foreign tax credits. Mr. President, the U.S. business community has had significant input in the development of this bill. This proposed legislation now will be evaluated and studied, and I welcome suggestions for its further improvement. It is my intention, as our analysis progresses, that we include other important issues not currently addressed in the bill, such as the appropriate allocation of interest expenses for foreign tax credit purposes, particularly for highly leveraged entities such as securities firms. I look forward to working with Senator Pressler on this important bill, and urge my colleagues on both sides to become cosponsors. Mr. BAUCUS. Mr. President, I am pleased to be a co- sponsor of the bipartisan ``International Tax Simplification for American Competitiveness Act.'' In 1997, Congress will take up tax reform. Discussions will range from replacing the current system to fixing what we have. Many Montanans ask me: How should we make taxes fairer for parents who are raising and educating their children, encourage our entrepreneurs to create and expand their businesses, and encourage all citizens to save? Our international tax provisions also need reform. The bill we introduce today is a placeholder to keep international tax reform on the legislative radar screen. As you can tell from the list of cosponsors, Mr. President, a number of Members have made contributions to the bill before us. Am I comfortable with every provision in the bill as written? No, I'm not. But I am comfortable every provision in the bill merits our consideration. The Finance Committee will take up tax reform next year. We will consider simplification of the international tax provisions in that context. I hope that the bill we introduce today will establish the parameters from which the Finance Committee addresses the need to simplify our international tax provisions. We will hear from a number of witnesses ranging from the business community to the Department of Treasury and, no doubt, the language before us will undergo change. We live in a global economy, Mr. President. Many businesses in Montana sell products directly or indirectly into that global economy. The international tax provisions should be simplified to make American companies competitive in the global economy while fairly taxing their profits. I look forward to working with the cosponsors of this bill and with the members of the Finance Committee and ultimately with all of my colleagues in restructuring and simplifying the Tax Code to benefit all of our citizens.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, today I am pleased to join my friend and colleague, Senator Pressler, as an original cosponsor of the International Tax Simplification for American Competitiveness Act. This important bill will begin the process of dismantling tax barriers that hinder American businesses who find themselves in an increasingly competitive global marketplace. Although American firms have succeeded to date in spite of the current complexity and unfairness of our international tax regime, the added costs imposed by our tax rules take their toll. We must move to identify and eliminate those harmful and unnecessary provisions that stand in the way of a continuing leadership role for American business in world markets. New York is home to many industries that are driven by global competition. Industries like the securities and banking industries, computer and other high technology firms, and countless other businesses in my State must have fair treatment at home in order to compete effectively abroad. For example, during the last decade the securities industry has been transformed from a largely domestic- oriented industry to an industry in which U.S. and international financial institutions compete against each other in the principal capital markets around the world. U.S.-based securities firms are recognized leaders in their industry worldwide. Maintaining this position is important not only for these firms, but also for their U.S. employees and for their U.S. customers who benefit from the innovative products and services offered by U.S.-based securities firms. Unfortunately, Mr. President, U.S. tax law has failed to keep pace with the rapid changes in the world economy. The international provisions of the Internal Revenue Code were last substantially debated and revised in 1986. And in many cases, our foreign competitors operate under simpler, fairer, and more logical tax regimes. This mismatch between commercial reality and the U.S. Tax Code creates a structural bias against the international activities of U.S. companies. This cannot and should not be allowed to continue. The International Tax Simplification for American Competitiveness Act acknowledges and addresses a number of problems our tax laws create for American businesses facing increasing global competition. This bill represents an important step toward correcting complexities of the antideferral rules under subpart F, including their inappropriate application to active financing income of bona fide financial institutions and the current definition of investment in U.S. property, and excessive limitations on the use of foreign tax credits. Mr. President, the U.S. business community has had significant input in the development of this bill. This proposed legislation now will be evaluated and studied, and I welcome suggestions for its further improvement. It is my intention, as our analysis progresses, that we include other important issues not currently addressed in the bill, such as the appropriate allocation of interest expenses for foreign tax credit purposes, particularly for highly leveraged entities such as securities firms. I look forward to working with Senator Pressler on this important bill, and urge my colleagues on both sides to become cosponsors. Mr. BAUCUS. Mr. President, I am pleased to be a co- sponsor of the bipartisan ``International Tax Simplification for American Competitiveness Act.'' In 1997, Congress will take up tax reform. Discussions will range from replacing the current system to fixing what we have. Many Montanans ask me: How should we make taxes fairer for parents who are raising and educating their children, encourage our entrepreneurs to create and expand their businesses, and encourage all citizens to save? Our international tax provisions also need reform. The bill we introduce today is a placeholder to keep international tax reform on the legislative radar screen. As you can tell from the list of cosponsors, Mr. President, a number of Members have made contributions to the bill before us. Am I comfortable with every provision in the bill as written? No, I'm not. But I am comfortable every provision in the bill merits our consideration. The Finance Committee will take up tax reform next year. We will consider simplification of the international tax provisions in that context. I hope that the bill we introduce today will establish the parameters from which the Finance Committee addresses the need to simplify our international tax provisions. We will hear from a number of witnesses ranging from the business community to the Department of Treasury and, no doubt, the language before us will undergo change. We live in a global economy, Mr. President. Many businesses in Montana sell products directly or indirectly into that global economy. The international tax provisions should be simplified to make American companies competitive in the global economy while fairly taxing their profits. I look forward to working with the cosponsors of this bill and with the members of the Finance Committee and ultimately with all of my colleagues in restructuring and simplifying the Tax Code to benefit all of our citizens.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, this amendment will begin the necessary reform of the commemorative coin programs authorized by Congress and carried out by the U.S. Mint. The amendment, supported fully by the Mint, includes many programs of H.R. 2614 passed by the House as well as recommendations for reform from the GAO. The amendment is a comprehensive substitute that enjoys widespread support. Commemorative coins are collectibles. The coins issued for each program satisfy a number of objectives. First, they raise awareness. Coin themes are meant to recognize significant national, and sometimes international, events, heroes and heroines, and historic sites vital to our American experience. They are expressions of our tremendous pride in all that molded this great country. Second, they allow the Treasury a means of decreasing the national deficit through profitable programs. Third, the sale of these coins enables worthy causes to raise money. For example, the restoration of our Nation's Capitol, the construction of memorials to our fallen heroes, and equally important for upkeep and maintenance of great homes such as Mount Vernon and the White House, and even the notable open-air home to four of our most prestigious Presidents, Mount Rushmore have been funded through commemorative coin programs. As wonderful as these programs seem, serious problems exists--as underscored by the recent General Accounting Office report I requested last year. The commemorative coin market has been flooded with far too many coins. Overzealous programs trying to generate as many products as possible only reduce the value of coins for collecting. When mintage levels go through the roof, the value of these commemorative coins drops considerably. More importantly and much to my dismay, taxpayers end up carrying the burden of coin programs that are not received well by the collectors. And while the sponsoring organizations may satisfy its goal of raising funds, the U.S. Mint incurs a loss which is passed on to the taxpayers. The amendment I am offering has been crafted to augment the valuable work on commemorative coin program reforms sponsored by Representative Michael Castle, chairman of the Subcommittee on Domestic and International Monetary Policy of the Committee on Banking and Financial Services. Congressman Castle's bill, H.R. 2614, which was supported overwhelmingly in the House, serves as a clear foundation for the reforms embodied in this bill. I commend him on his guidance and perseverance as it relates to this issue. Mr. President, the reforms contained in this amendment will accomplish three major goals: Protect the taxpayer from losses incurred by the Mint, keep the number of coins in the market at a collectible level for collectors, and keep the total number of yearly programs at a manageable level for the Mint. Fulfillment of these goals will not only protect the American taxpayer, but will ensure the preservation and success of future commemorative coin programs produced by the U.S. Mint. Mr. President, I ask unanimous consent that a summary of the amendment be printed in the Record. Mr. President, I thank my good friend and colleague, Senator Shelby, for his work in this area. As a member of the Banking Committee he is keenly aware of the necessity for these reforms.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I introduce legislation which will permit a three-year reauthorization of certain Medicare Community Nursing Organization [CNO] demonstration projects within the Health Care Financing Administration [HCFA]. In 1987, in response to the Omnibus Budget Reconciliation Act of 1987, Congress authorized the Community Nursing Organization demonstration projects to test capitated payment under the Medicare Program for community nursing and ambulatory care services furnished to beneficiaries. The demonstration projects are structured to answer two questions: First, is it feasible to have a capitated, case-managed, nurse service delivery model for home health and ambulatory care; and second, What is the impact on enrollees, providers, and the larger health care system? These CNO programs are intended to reduce the breakup in the delivery of health care services, to reduce the use of costly emergency care services, and to improve the continuity of home health and ambulatory care for Medicare beneficiaries. CNO's are responsible with providing home health care, case management, outpatient physical and speech therapy, ambulance services, prosthetic devices, durable medical equipment, and any optional, HCFA-approved services appropriate to prevent the need to institutionalize Medicare enrollees. HCFA awarded four CNO sites in September 1992 through the competitive procurement process: First, Visiting Nurse Service in New York, NY--a not-for-profit Medicare certified home health agency; second, Carle Clinic in Mahomet, IL--a multispecialty group practice; third, Carondelet Health Care in Tuscon, AZ--a hospital-based organization; and fourth, Living at Home/Block Nurse Program in St. Paul, MN--a not- for-profit nursing organization replicating the Block Nurse Program model. These CNO's operate under full financial risk to themselves and are financially responsible for the provision of all mandatory community nursing and ambulatory care services available to Medicare enrollees. Mr. President, these CNO projects are consistent with congressional efforts to introduce a wider range of managed care options to Medicare beneficiaries. Their authorization needs to be extended in order to ensure a fair testing of the CNO managed care concept. We need the extention of this demonstration authority to continue to provide an important example of how coordinated care can provide additional benefits without increasing Medicare costs. In addition, further time is necessary to evaluate the impact of the CNO contribution to Medicare patients and to assess their capacity for operating under a fixed budget. Most importantly, this demonstration extension will not increase Medicare expenditures. CNO's actually save Medicare dollars by providing better and more accessible health care in homes and in community settings, thereby allowing enrollees to avoid unnecessary hospitalizations and nursing home admissions. By demonstrating what a primary care-oriented nursing practice can accomplish with elderly or disabled patients, CNO's help illuminate methods for increasing benefits, saving funding dollars, and most importantly, improving the quality of life for patients. Mr. President, I urge my colleagues to consider this bill carefully and join me in seeking to extend these cost-savings and patient- oriented CNO demonstrations for another 3 years. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I introduce legislation which will permit a three-year reauthorization of certain Medicare Community Nursing Organization [CNO] demonstration projects within the Health Care Financing Administration [HCFA]. In 1987, in response to the Omnibus Budget Reconciliation Act of 1987, Congress authorized the Community Nursing Organization demonstration projects to test capitated payment under the Medicare Program for community nursing and ambulatory care services furnished to beneficiaries. The demonstration projects are structured to answer two questions: First, is it feasible to have a capitated, case-managed, nurse service delivery model for home health and ambulatory care; and second, What is the impact on enrollees, providers, and the larger health care system? These CNO programs are intended to reduce the breakup in the delivery of health care services, to reduce the use of costly emergency care services, and to improve the continuity of home health and ambulatory care for Medicare beneficiaries. CNO's are responsible with providing home health care, case management, outpatient physical and speech therapy, ambulance services, prosthetic devices, durable medical equipment, and any optional, HCFA-approved services appropriate to prevent the need to institutionalize Medicare enrollees. HCFA awarded four CNO sites in September 1992 through the competitive procurement process: First, Visiting Nurse Service in New York, NY--a not-for-profit Medicare certified home health agency; second, Carle Clinic in Mahomet, IL--a multispecialty group practice; third, Carondelet Health Care in Tuscon, AZ--a hospital-based organization; and fourth, Living at Home/Block Nurse Program in St. Paul, MN--a not- for-profit nursing organization replicating the Block Nurse Program model. These CNO's operate under full financial risk to themselves and are financially responsible for the provision of all mandatory community nursing and ambulatory care services available to Medicare enrollees. Mr. President, these CNO projects are consistent with congressional efforts to introduce a wider range of managed care options to Medicare beneficiaries. Their authorization needs to be extended in order to ensure a fair testing of the CNO managed care concept. We need the extention of this demonstration authority to continue to provide an important example of how coordinated care can provide additional benefits without increasing Medicare costs. In addition, further time is necessary to evaluate the impact of the CNO contribution to Medicare patients and to assess their capacity for operating under a fixed budget. Most importantly, this demonstration extension will not increase Medicare expenditures. CNO's actually save Medicare dollars by providing better and more accessible health care in homes and in community settings, thereby allowing enrollees to avoid unnecessary hospitalizations and nursing home admissions. By demonstrating what a primary care-oriented nursing practice can accomplish with elderly or disabled patients, CNO's help illuminate methods for increasing benefits, saving funding dollars, and most importantly, improving the quality of life for patients. Mr. President, I urge my colleagues to consider this bill carefully and join me in seeking to extend these cost-savings and patient- oriented CNO demonstrations for another 3 years. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I have said in the past, and continue to believe, that the action taken by Congress in eliminating section 936 without a permanent replacement program that provides a major stimulus to economic development in Puerto Rico and the creation of well-paying and stable jobs was unfortunate. We have the seeds of a replacement program in new Internal Revenue Code section 30A that provides a targeted wage credit to companies currently doing business in Puerto Rico based upon the compensation paid to their qualified employees. Although this is certainly movement in the right direction, it does not allow new business starts, and the credit will sunset in 10 years. As such, it does not provide the permanency that is needed to maintain the economic development of Puerto Rico, and will adversely impact States like New York. Corporations headquartered in New York State that have invested in Puerto Rico employ over 39,000 persons in New York. Moreover, Puerto Rican subsidiaries of mainland companies purchase approximately $195 million per year worth of supplies and services from New York. Consequently, when the wage credit sunsets in 2006 and corporations are drawn to other regions where there are tax incentives, New York State will lose not only jobs, but a significant amount of income from goods and services. Mr. President, Congress needs to work with the elected representatives of Puerto Rico to expand section 30A into a dynamic and effective job creation incentive that helps to bring new and high- paying jobs to Puerto Rico. By doing so, we will raise Puerto Rico's economic standards and provide efficient Federal incentives to accomplish those goals. I firmly believe that Congress, working with Governor Rossello and other elected leaders from Puerto Rico, can successfully fashion a program that achieves economic progress for Puerto Rico and efficiency in Federal expenditures.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I would like to commend the distinguished chairman and ranking minority member of the Treasury Appropriations Subcommittee. Thanks to their efforts, we have reached an agreement to include my amendment into this important legislation. This amendment incorporates the text of S. 1009, the Financial Instruments Anti-Fraud Act. This bill has bipartisan support and has been cosponsored by Senators Lieberman, Grassley, Johnston, Bryan, Bond, and Frahm. Mr. President, over the past several years, innovative criminals have exploited a loophole in Federal anti-counterfeiting laws. These laws do not specifically criminalize the production or passing of a phony check, bond or security if is not a copy of an actual financial instrument. Criminals are now making and passing completely fictitious financial instruments. These instruments may involve, for example, a bank, an asset or a security that does not even exist. Under existing Federal and State law, in order to prosecute a criminal who produces or passes a completely fictitious instrument, the criminal must use the wires or mails, or deposit the instrument in a bank. These laws simply do not prohibit the making and passing of fictitious financial instruments. The International Chamber of Commerce estimates that frauds involving fictitious financial instruments cost investors around the world $10 million per day. The Office of the Comptroller of the Currency reports that in the first 6 months of 1996, con artists have attempted to pass more than $3 billion in fictitious instruments in the United States. In many cases, criminals who are caught attempting to perpetrate these frauds cannot be prosecuted. That is wrong. This loophole must be closed. On July 17, the Banking Committee held hearings on this issue. Charitable institutions such as the Salvation Army and the National Council of Churches of Christ testified that they lost millions of dollars in these scams. The committee also heard testimony from a private institution in North Carolina that paid out on a fictitious financial instrument. Mr. President, there is another sinister side to these frauds. Antigovernment groups use fictitious financial instruments to commit economic terrorism against Government agencies, private businesses, and individuals. Prior to their 81-day siege, the Montana Freemen passed fictitious instruments called comptroller warrants. The Freeman used these instruments to stockpile food, water, gasoline, and even vehicles. This past April, a California woman, Elizabeth Broderick, was arrested for mail fraud and conspiracy for passing comptroller warrants to banks, automobile dealers, bail bondsmen and even the IRS. Ms. Broderick, who calls herself the Lien Queen, has held seminars on how to produce and pass phony checks, charging her students $125 each. Federal authorities monitored the Lein Queen's activities for several years. They finally were able to arrest her only after she slipped and used the mails to send some of her phony checks. Fictitious instruments are an important source of funds for antigovernment groups. The Lien Queen attempted to pass more than $124 million in phony checks. LeRoy Schweitzer, the founder of the Montana Freemen, successfully passed more than $85 million in phony notes, netting more than $670,000 in profits. Armed antigovernment groups such as the Freemen use fictitious instruments to undermine the banking and monetary systems of the United States. These groups believe that the Federal Government has declared war on its citizens, and that Federal institutions such as the Federal Reserve must be destroyed. My amendment would close this loophole. The amendment would give Federal agents the tools necessary to prevent millions of dollars in losses to banks, mutual funds, and individuals. Under this amendment, criminals found guilty of trafficking in fictitious financial instruments would face up to 25 years in prison. Mr. President, the Banking Committee has worked closely with the Treasury Department and the Secret Service to develop this legislation. I would like to thank my colleagues who are cosponsors of the bill and the floor managers. Federal law enforcement officials need this weapon to combat this new brand of financial fraud and to protect our financial institutions. amendment no. 5230 (Purpose: To prohibit distribution of federal employee personal information without consent of the individual) On page 135, after line 4, add the following new section: Sec. . None of the funds appropriated by this Act may be used by an agency to provide a Federal employee's home address except when it is made known to the Federal official having authority to obligate or expend such funds that the employee has authorized such disclosure or that such disclosure has been ordered by a court of competent jurisdiction.

Mr. D'AMATO

Mr. D'AMATO. Mr. President, I rise in support of a bill, the International Narcotics Control Act of 1996, that was introduced yesterday. S. 2053 is a long overdue bill and I commend my colleague from Iowa for his work on this important legislation. Since 1986, we have had on a law requiring the President to certify that foreign countries are cooperating in the United States efforts to stop the flow of drugs into our borders. This law has not been revised for 10 years so it is critical that these important changes are made to ensure an effective antinarcotics effort. The Foreign Assistance Act mandates that the President deliver to Congress a list of countries that have been fully cooperating with the United States to stop international drug trafficking as well as those that have failed to cooperate by the 1st of March of each year. The Department of State details the decision in the International Narcotics Control Strategy Report. For those countries that have been decertified, sanctions may be imposed, or a waiver can be given. But the intent of the original act has been lost. Rather than sanctioning countries that are not cooperating with the United States to halt the flow of illegal drugs, the process has been stifled with other considerations. It is high time for changes to the law. Timing could not be better. The Substance Abuse and Mental Health Services Administration released the preliminary estimates from the 1995 National Household Survey on Drug Abuse. Let me quote from the initial study, The percentage of adolescents (12 to 17 years old) using drugs increased between 1994 and 1995 continuing a trend that began in 1993. In 1992, the rate of past month use among youth age 12 to 17 reached a low of 5.3 percent, the result of a decline from 16.3 percent in 1979. By 1994 the rate had climbed back up to 8.2 percent, and in 1995 it increased again to 10.9 percent. According to the Community Anti-Drug Coalitions of America, overall use of all drugs among this age group rose 78 percent between 1992 and 1995, and 33 percent just between 1994 and 1995. In particular marijuana use among young people is up 105 percent since 1992, and 37 percent between 1994 and 1995. Monthly use of LSD and other hallucinogens is up 183 percent since 1992, and rose 54 percent between 1994 and 1995. Monthly use of cocaine rose 166 percent between 1994 and 1995. It is clear that the number of teenagers using illicit drugs is rising--and that is unacceptable. After decades of working on reducing drug use, our young people are believing that it is OK to use drugs. The media, and even the administration, are sending signals that a little drug use is OK. It is not. The wrong message has been sent and it is time to change that. Teenagers must learn the harmful, even deadly, effects of illegal drug use. The availability of illegal drugs must be curtailed. The best way to diminish accessibility is to stop drugs from crossing our borders. This bill would accomplish that goal. International drug trafficking can only be halted with the full cooperation of a drug-producing or drug-transit country. It is imperative then, that foreign countries assist in the interdiction and prosecution of those responsible. We should expect this from our allies. The provisions in the International Narcotics Control Act are comprehensive and tough. If a drug-producing or drug-transit country has failed to cooperate with the United States for 3 consecutive years, then sanctions must be applied. Decertification will no longer be a meaningless label to these countries. The trade sanctions are particularly important to stopping the international drug trade. Trade sanctions will force the foreign country to sit up and take notice. Far too often, traffickers use legitimate commercial trade to smuggle illicit drugs into this country. In addition, the administration has been less than forthcoming. Additional reporting requirements and notices to Congress will ensure that the American people are receiving prompt and accurate information. I am pleased to have worked with my colleagues on this measure and urge my colleagues to support this bill's immediate passage. The communities that are fighting the war on drugs--and our children-- deserve nothing less.

Mr. D'AMATO

Mr. D'AMATO. I would like to join my colleague from New York in support of the New York Botanical Garden. The Garden is much more than a collection of plant specimens. Its research scientists are continually out in the field collecting new specimens, particularly in Central and South America. In addition, one of the Garden's major initiatives is in economic botany, trying to find and promote rain forest plants that can be harvested and sold, such as those with medicinal value, rather than deforesting a region for farming.

Mr. D'AMATO. I would like to join my colleagues in expressing my support for the continued funding of the Long Island Sound Office. What many Senators may not know is that Long Island Sound is an economic as well as an environmental asset. The sound generates billions of dollars from tourism, boating, sportfishing, and a newly-revived shellfish industry. If the sound's recovery is threatened, the economies of both States will suffer and we will lose jobs that these industries sustain. Funding to continue to carry out the important work of the sound's management plan will help keep that recovery moving.

Mr. D'AMATO. I thank my colleague from Missouri. Given our shared concerns over the importance of the science in this new field of scientific inquiry, would it not be appropriate for the Environmental Protection Agency to enter into agreement with the National Academy of Sciences to conduct a comprehensive study of both the potential effects and the actual and potential exposures of humans to synthetic and naturally occurring hormonally active agents in the environment? The study could address a number of important issues central to the development of an effective screening program, such as how to select and prioritize chemicals and samples for testing, which test or tests to include in a screening program, and the most appropriate way to use the resulting information in developing risk estimates.

Mr. D'AMATO. Mr. President, I would like to state my support for an issue that I believe is important to the health of all veterans in detecting colorectal cancer. Specifically, I am referring to the flexible endoscopic procedures performed by physicians. Currently, there are two types of flexible endoscopes available to physicians to perform these procedures: One is a conventional endoscope that is manually cleaned and disinfected. The other is a redesigned endoscope which incorporates the use of a sterile protective covering called the EndoSheath. Using the EndoSheath protects the patient and health care provider from the risks associated with cross-contamination. I am very concerned by the contamination risks associated with the use of impure patient-ready endoscopes on veterans. As such, it is important to ensure that the Veterans Health Administration is aware of and encouraged to explore the overall effectiveness of the single- patient, sterile, condom-like protective coverings that may help protect veterans from the risk of cross-contamination.