S6906 CONGRESSIONAL RECORD — SENATE May 18, 1995

and you say, now, would you like to

have this wonderful program that is

going to cost $100 for your family?

Most people would probably say, yes, I

would like to do good things. Sure, I

would like to have that program. But if

the choice is for you to keep the $100

on your kitchen table and spend that

money for what you want to spend it

for for your family, what is going to be

your choice? Are you going to send the

$100 to Washington to spend on a program that sounds very good or are you

going to want to keep that $100 to

make the decisions for your family

yourself. We are going to try to keep

that $100 on the table for your family,

so that you can decide what your priorities are rather than letting someone

in Washington, DC, you have never met

make those decisions for you.

Two economists developed a model

for the future called generational accounting. This model calculates how

much short-term budget policies will

cost future generations. It looks beyond 5-year budget projections and was

developed from the help of the President’s Office of Management and Budget.

These two prominent economists

have produced some shocking forecasts. On the day a child is born, that

child owes $19,000 in Federal debt.

When that child’s sibling is born in 4

years, the baby brother or sister will be

$24,000 in debt. There will be fewer jobs

available for that child. And when it

comes time to take out a personal loan

to buy a new car or to own a home, our

children that are being born today will

find that Federal deficits have driven

the interest rates up 2 percent. But

borrowing money for a home will be

just a dream for those children. If we

continue at the rate we are going right

now, what we are really going to give

our children is not the ability to buy a

home at all. They will not be able to

buy a home because their tax rate will

be 82 percent—82 percent is what we

will be giving to our children and

grandchildren if we do not take steps

right now to correct the runaway

spending that this Congress has had for

the last 40 years.

And yet, this administration has refused to abandon the practices of Congresses for the last 40 years. In fact,

this administration has dealt itself out

of this debate. The President submitted

a budget but it does not balance. It

does not balance in the year 2000 or the

year 2002. The President abdicated that

responsibility and has left it to Congress.

Now we are going to get a chance to

vote on the President’s budget that

does not balance. In fact, the President’s press secretary said on Tuesday

that that will be a good place for us to

begin.

In fact, Senator DOMENICI has decided

that that is indeed a good place to

begin. So, when I finish my remarks,

on behalf of Senator DOMENICI, I am

going to submit the President’s budget.

That will be the first vote of this budget debate and we will get a chance to

see if people want to vote for a budget

that may have fewer decreases than increases, but does not balance at the

end. We will see who is willing to cross

the line that will be drawn in the sand

to say, we will take the responsible

course for this country and we will do

what the people asked us to do last November.

In fact, we are in the toughest debate

that we may ever have. No one, probably even Senator DOMENICI, agrees

with everything in this budget resolution. I do not agree with everything in

it. Not one person in this country probably agrees 100 percent with everything

in it. Because, you know, Senator DOMENICI compromised. He tried to work

with people and their priorities. He

may not have liked everything that is

in this resolution even though he is the

prime author of the resolution. But we

are going to rise above our small differences. We are going to try to set the

priorities. We are going to have amendments.

We may vote for some of those

amendments, but in the end, Mr. President, the people who are doing what is

responsible for this country are going

to vote a balanced budget out of the

Senate just as they have done in the

House today. And we are going to make

history. We are going to begin to turn

the ship of state that started going in

the wrong direction in the 1930’s when

we started building up spending and big

Government until in 1994 the people

said, ‘‘I know I’m going to have to sacrifice. I’m ready.’’ The people of this

country said that. They understood

what they were doing.

And when I go home, people say to

me, ‘‘You hang tough. Don’t back down

now.’’

This is our chance to save our country. And if we miss it, the people of

America know that we will not have

this chance again maybe ever but certainly not in the near future.

There is a new spirit in this country.

The spirit of the Americans who went

to the polls in 1994 and caused a revolution in the way that our Founding Fathers provided them to have a revolution. And that was the ballot box. The

people had a revolution and they took

their Government back. They have experienced the right of democracy. And

now the people of America have said,

‘‘We want you to do what is right. We

understand that it will be tough. We

understand that we will have to sacrifice. But we are ready. We are ready

to do what is right for our children and

our grandchildren.’’

Mr. President, it is time for us to

look to the future, not to the next election.

If we do what is right, everything

else will take care of itself and we will

create the jobs and the future for our

children and that is what we are going

to do.

AMENDMENT NO. 1111

(Purpose: To propose the President’s budget)

Mrs. HUTCHISON. Mr. President, on

behalf of Senator DOMENICI, I send to

the desk the President’s budget and

ask that the President’s budget be put

on the table for consideration beginning tomorrow morning on Friday so

that we will be able to have our first

vote on the President’s budget and we

will see who wants to balance the budget and who is willing to take the steps

that are necessary to do it.

The PRESIDING OFFICER. Without

objection, it is so ordered.

The clerk will report the amendment.

The assistant legislative clerk read

as follows:

The Senator from Texas [Mrs. HUTCHISON],

for Mr. DOMENICI, proposes an amendment

numbered 1111.

Mrs. HUTCHISON. Mr. President, I

ask unanimous consent that reading of

the amendment be dispensed with.

The PRESIDING OFFICER. Without

objection it is so ordered.

(The text of the amendment is printed in today’s RECORD under ‘‘Amendments Submitted.’’)

Mrs. HUTCHISON. Mr. President, I

ask unanimous consent that when the

Senate resumes the concurrent budget

resolution on Friday there be 40 hours

remaining for debate under the statutory time limit.

The PRESIDING OFFICER. Without

objection, it is so ordered.

Mrs. HUTCHISON. Mr. President, I

MORNING BUSINESS

fask unanimous consent that there now

be a period for the transaction of morning business, with Senators permitted

to speak for up to 5 minutes each.

The PRESIDING OFFICER. Without

objection, it is so ordered.

REPORT ON THE NATIONAL EMERGENCY WITH IRAN—MESSAGE

fFROM THE PRESIDENT—PM 49

The PRESIDING OFFICER laid before the Senate the following message

from the President of the United

States, together with an accompanying

report; which was referred to the Committee on Banking, Housing, and

Urban Affairs.

To the Congress of the United States:

I hereby report to the Congress on

developments since the last Presidential report on November 18, 1994,

concerning the national emergency

with respect to Iran that was declared

in Executive Order No. 12170 of November 14, 1979, and matters relating to Executive Order No. 12613 of October 29,

1987. This report is submitted pursuant

to section 204(c) of the International

Emergency Economic Powers Act, 50

U.S.C. 1703(c), and section 505(c) of the

International Security and Development Cooperation Act of 1985, 22 U.S.C.

2349aa–9(c). This report covers events

through April 18, 1995. It discusses only
May 18, 1995 CONGRESSIONAL RECORD — SENATE S6907

matters concerning the national emergency with respect to Iran that was declared in Executive Order No. 12170 and

matters relating to Executive Order

No. 12613. Matters relating to the

March 15, 1995, Executive Order regarding a ban on investment in the petroleum sector, and the May 6, 1995, Executive Order regarding new trade sanctions, will be covered in separate reports. My last report, dated November

18, 1994, covered events through October 18, 1994.

1. There have been no amendments to

the Iranian Transactions Regulations,

31 CFR Part 560, or to the Iranian Assets Control Regulations, 31 CFR Part

535, since the last report.

2. The Office of Foreign Assets Control (‘‘OFAC’’) of the Department of

the Treasury continues to process applications for import licenses under the

Iranian Transactions Regulations.

However, a substantial majority of

such applications are determined to be

ineligible for licensing and, consequently, are denied.

During the reporting period, the U.S.

Customs Service has continued to effect numerous seizures of Iranian-origin merchandise, primarily carpets, for

violation of the import prohibitions of

the Iranian Transactions Regulations.

OFAC and Customs Service investigations of these violations have resulted

in forfeiture actions and the imposition

of civil monetary penalties. Additional

forfeiture and civil penalty actions are

under review.

3. The Iran-United States Claims Tribunal (the ‘‘Tribunal’’), established at

The Hague pursuant to the Algiers Accords, continues to make progress in

arbitrating the claims before it. However, since my last report, the Tribunal

has not rendered any awards although

payments were received by claimants

in late November for awards rendered

during the prior reporting period.

Thus, the total number of awards remains at 557. Of this total, 373 have

been awards in favor of American

claimants. Two hundred twenty-five

(225) of these were awards on agreed

terms, authorizing and approving payment of settlements negotiated by the

parties, and 150 were decisions adjudicated on the merits. The Tribunal

has issued 38 decisions dismissing

claims on the merits and 85 decisions

dismissing claims for jurisdictional

reasons. Of the 59 remaining awards,

three approved the withdrawal of cases

and 56 were in favor of Iranian claimants. As of April 18, 1995, the Federal

Reserve Bank of New York reported

that the value of awards to successful

American claimants from the Security

Account held by the NV Settlement

Bank stood at $2,365,160,410.39.

Iran has not replenished the Security

Account since October 8, 1992, and the

Account has remained continuously

below the balance of $500 million required by the Algiers Accords since November 5, 1992. As of April 10, 1995, the

total amount in the Security Account

was $191,219,759.23, and the total

amount in the Interest Account was

$24,959,218.79.

The United States continues to pursue Case A/28, filed in September 1993,

to require Iran to meet its obligations

under the Algiers Accords to replenish

the Security Account. Iran has yet to

file its Statement of Defense in that

case.

4. The Department of State continues

to present United States Government

claims against Iran, in coordination

with concerned government agencies,

and to respond to claims brought

against the United States by Iran.

On April 18, 1995, the United States

filed the first of two parts of its consolidated submission on the merits in

Case B/61. Case B/61 involves a claim by

Iran for compensation with respect to

primarily military equipment that Iran

alleges it did not receive. The equipment was purchased pursuant to commercial contracts with more than 50

private American companies. Iran alleges that it suffered direct losses and

consequential damages in excess of $2

billion in total because of the U.S. Government’s refusal to allow the export

of the equipment after January 19, 1981,

in alleged contravention of the Algiers

Accords. As directed by the Tribunal,

the United States’ submission addresses Iran’s claims regarding both liability and compensation and damages.

5. The Foreign Claims Settlement

Commission (‘‘FSCS’’) on February 24,

1995, successfully completed its caseby-case review of the more than 3,000

so-called ‘‘small claims’’ against Iran

arising out of the 1979 Islamic revolution. These ‘‘small claims’’ (of $250,000

or less each) were originally filed before the Iran-United States Claims Tribunal, but were transferred to the

FCSC pursuant to the May 13, 1990 Settlement Agreement between Iran and

the United States.

The FCSC issued decisions on 3,066

claims for total awards of $86,555,795. Of

that amount, $41,570,936 represented

awards of principal and $44,984,859 represented awards of interest. Although

originally only $50 million were available to pay these awards, the funds

earned approximately $9 million in interest over time, for a total settlement

fund of more than $59 million. Thus, all

awardees will receive full payment on

the principal amounts of their awards,

with interest awards paid on a pro rata

basis.

The FCSC’s awards to individuals

and corporations covered claims for

both real and personal property seized

by Iran. In addition, many claims arose

out of commercial transactions, including contracts for the sale of goods

and contracts for the supply of services

such as teaching, medical treatment,

data processing, and shipping. The

FCSC is now working with the Department of the Treasury to facilitate final

payment on all FCSC awards.

6. The situation reviewed above continues to implicate important diplomatic, financial, and legal interests of

the United States and its nationals and

presents an unusual challenge to the

national security and foreign policy of

the United States. The Iranian Assets

Control Regulations issued pursuant to

Executive Order No. 12170 continue to

play an important role in structuring

our relationship with Iran and in enabling the United States to implement

properly the Algiers Accords. Similarly, the Iranian Transactions Regulations issued pursuant to Executive

Order No. 12613 continue to advance

important objectives in combating

international terrorism. I shall continue to exercise the powers at my disposal to deal with these problems and

will continue to report periodically to

the Congress on significant developments.

WILLIAM J. CLINTON.

THE WHITE H

fOUSE, May 18, 1995.

REPORT UNDER THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT—MESSAGE

FROM THE PRESIDENT—PM 50

The PRESIDING OFFICER laid before the Senate the following message

from the President of the United

States, together with an accompanying

report; which was referred to the Committee on Banking, Housing, and

Urban Affairs.

To the Congress of the United States:

On November 14, 1994, in light of the

dangers of the proliferation of nuclear,

biological, and chemical weapons and

their means of delivery (‘‘weapons of

mass destruction’’), I issued Executive

Order No. 12938 and declared a national

emergency under the International

Emergency Economic Powers Act (50

U.S.C. 1701 et seq.).

As I described in the report transmitting Executive Order No. 12938, the new

Executive order consolidated the functions of and revoked Executive Order

No. 12735 of November 16, 1990, which

declared a national emergency with respect to the proliferation of chemical

and biological weapons, and Executive

Order No. 12930 of September 29, 1994,

which declared a national emergency

with respect to nuclear, biological, and

chemical weapons, and their means of

delivery. The new Executive order also

expanded certain existing authorities

in order to strengthen the U.S. ability

to respond to proliferation problems.

The following report is made pursuant to section 204 of the International

Emergency Economic Powers Act and

section 401(c) of the National Emergencies Act regarding activities taken

and money spent pursuant to the emergency declaration. Additional information on nuclear, missile, and/or chemical and biological weapons (CBW) nonproliferation efforts is contained in the

annual report on the proliferation of

missiles and essential components of

nuclear, biological, and chemical weapons, provided to the Congress pursuant

to section 1097 of the National Defense

Authorization Act for Fiscal Years 1992

and 1993 (Public Law 102–190), also