CONGRESSIONAL RECORD - SENATE

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CIA-RDP77M00144R001100220033-3
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December 16, 2016
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April 25, 2005
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33
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Publication Date: 
September 15, 1976
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OPEN
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September 1 Apr?bled For s / 2 77 1,4 001100220033-3 158 hibition been in the Benste bill since arad oremertser roatis2catIAor hula. The Eouse CONCLUSION O t June, but its parameters were explained in a floor statement by the principal sponsor of the bill Mr. Pnitrr A. HAIM on September a: Section 40~11(A)' prohibits the use Ed Per- centage contingency fees in parent patriaa cases Sled under. Seetian 4C. T)>". prghibt- tion. Is to be Imposed by the court in e ward- ing attorney's lees under subsection 4C(d) (1) and in approving dismissals and com- promises under subsection 40(c). Section 4G(1) (B) makes, explicit twha pro- hibition of ether contingency Sees unless such fees are determined by the court after a litigated judgment under subsection 4C (d) (1) or, it a case is settled, by the court under subsection 4C(d) (1) and 4C(c). The standards to be used by the court In determining a reasonable attorney's fee, are as set forth in the Senate Report No. 94-803. These provisions are Included to assure both the reasonableness of the fees and that the bulk of the State recovery would be distrib- uted to consumers-not lawyers. - What the Senate bill does permit;, Mr. President, is a fee-a "reasonable" fee- determined by the court.. Such fee can be contingent on success, but I submit that a reasonable hourly fee contingent on success is a far cry from a percentage contingency fee of one-third or one'-half of the damages awarded. A reasonable fee contingent on success, Mr. President, means that parens patriae actions can be filed which will result in plaintiff's counsel receiving nothing if the case is lost. This very provision, Mr. President, was Included in the bill, because of the strong arguments or companies like Bristol- Myers that parens patriae coul3 be abused by the States and, used to harass business 'through the filing of -frivolous suits. I ask my colleagues to judge, Mr. President, what stronger deterrent to the filing of frivolous suits can exist than counsel's knowing if he loses he will not receive a fee? Moreover, Mr. President, States cannot contract to pay counsel "$300 and $400 per hour." Whatever fees counsel will get under the bill will be "determined"- not merely "approved"--by the court, and they must be based primarily on. a rea- sonable hourly- fee. As )Bristol-Myers well knows, the $300 and $400 per hour fees were paid in cases under circumst:irb..-es which did not prohibit percentage ccrrl- tingency fees. In conclusion, Mr. President, I stand by the Senate action and believe it to he highly responsible, as well as responsive to the tegitirrlate concerns expressed by the responsible businesses which oppose the Senate bill. I rise to make this state- ment out of a, strong conviction that the type of lobbying going on with respect to this bill, epitomized by the Bristol- 'Myers letter, should not and cannot be COfrdoined by responsible legislators re- gardless of their views of the mla:it ass Abe legislatioi]. Exars1T 1 BaISTCL-355553 Co.,. WcxA,i3t9rf0a, D.C., September 7, 1.076. V ii3COi oRzaeartMer: Shortly the House will voiv eea The envy Passage of 1r.R. 81532x, the Beeproveiment Act. YOU Will recall that the Hamm recently Jot'ISeeelli fket' fwresas patsies bill with its CID The. Senate e~mgprcneyee '0611 permit. i/further morlong Wl pt's if fr for the piAirrtif:s' hI;hs1ieyar Lban. was e ally returned to ooneum ors I do hope you sell:] ieek to correct ey The PRESIT)I] IG OE'FTCE R. Under the n= pixvious order, the Senate will now re- j_ sume consideration of the unftrilshed busInes _ 3. 3684. which will he stated by WAn.atall uy pr1vkYw pusuailiS ecwrueys. wuwgl title, mnv nrove sr te.rcmttrur an t:n~ eetur.lly atiir u'n lnlgation. ,.~ ..~ .,..~ n.es.o......o ......a ......., ..., Vex= U*uly goc,VS, follows: In the Ftecoaa of flepternber 7, I970, Mr. NVELSONs relnari s In connection with the submission of tors concurrent reiolu- tLons were inc:arlrectllr set forth in two psragrap:ns. In the p'rmarLent Itlacx)3n, the sei:oabe pr,ragrapi7 on 1:ar:e S152541 will be printed as follows : Mr. Pn'r.deni., I ant Pierre to question just how w,21] 'ale execut ve branch has conducted. is e:ca.rr..natlt n of these p:l.ans. Merely obscrvi cog the rn,aniner in which notice or rise ?rrornas ect sales was trans- mitted to the c:"onvrzittee on Foreign ReIarions al:,s< dis'suiicinrr quest;ans. Corn .rear g thr rrign al ,"sir:nd'ry list of proposed sc.les and the resultant indi- vidu:Ll EiCtaiiee..u ns rsv~.lsJs serious dis- cr3parc1ee:, every Is-icough. 100th transimas" sions were irepa?res3 key the Department of Defense Far :xs;taace, the day after receiving the nvent.11 list of offers, the Ccnsrnittee or iorei;n Relations was surpi:reed t, lied in its box an additional arms sales aoi.'icaitaoa I;o I?raeI, boost- ing obligat.),)tas to that. country by scme- th.ing over ?;73 mill:tor.. That same com- m nncatic-ri br'outs t,C nsvi!m that the dollar value of P"opcasedd arils sales to Saudi Arabia h:r+t rrivste'riously hler!?eased baY $40 million In transmittal No. 7T-40 for training eouinrn.cu t to Saudi Arabia, there is $ I ri1li :.cw di: cr =_ G a`ne:e betv;een the cover 14ettiA 111241 tae a,etua.I notiiica?- tion. Now l 'OI1 rria.Y r.ot, In disturbed by these clerical errors. P.thcnt all, $I million: is a drop in th,-, bucket for Saudi Arabia which is pianri rig to buy $702 million worth of F'LCS 6; 7(xt3 and services on just this day. taut. W. Preis id'ertt, a $I mil- lion clerical error is at least as good f:adt.. cation that nL4 everyaia:nag IS, exactly shipshape in A::aer;.ca':i aims sales policy. Di,seovery ca' these: errors. :bourn leae3 lll3 to probe farther. Mao, In he reervnsrn::rlt Rscoim, the third paral: rap: -)n: page 1315257 will be printed as f illows:: Mr. Frets lerit, clearly Congress mush ac.t do imp: ocse a inr ire C 4Ert;tC4L% note in coal- arms sales policy'. Tee ,sdrnttafstraktou has clemoerstraled thin, ill is incapable of so acting lei uwrniing up Its Labor Day, packet. The c-flaetir mnrrner in wlrich, this aanounren:Lent was cl.divered reveals a deeper chaos; in this al-.ms sales pro.. gram whim.Ji only ,a revpcicdcible Congress can now tricipe:r. Exchange Act of 1934 to rerlydie issuers of securitLys reglster.*0 pursuant to section 12 of such Act to maiatain - ccurc ',a records. Co prohibit certaio. trriLes, sand rar otl'er pirr- p-ses. The PRESIDING OF z 1CER. The Pend- ing question is on the rmeridrneni5 of tyre Senator from ICdilio C/tr. ClrrtRCn). (Mr. CRIIRCu's aanei dinerct No.. 2292 Is printed in. yr>:,tcrday' - REscoRn at page S15792..) The PRESIDI'LC, O'41FICFiE. The time for debate on this an endnent is 1L isb;- ed to 1! hour to Its e, c)a:Ily r'tvfdeed and controlled by the Senator from It ice (Mr. C'lruscn) and 'he Senator from Texas (Mr. Tow za). w:th the vote 'there- on to immediately f.thow.. Who :yk:uta time? Mr. PROXMIItE h4- Presid n1, I as.k unanimous cnrssent thL.t it grionim tail]`. be ordered without the time being taken from either side. The PRESIDI6rr.G (1h1ICi'EII.. Without objection, it is so ordered. The clerk will call t us roll. The assistant 1egt?;umare clerk pro- ceeded to call the rcii. Mr- PROXIstIRRE M'-. President, I ask unanimous cemrserit tied: the- oee3er fair the quorum rail be re iii taall recipient to the ultimate Idaho that, ai trlough I think his auner oc, think we are engaging in pure tokenism. rec.pierrt :as once that is not, l kely to be ment is a goer' amendment atarI J sl p?ed language of the _ in. in ,order to a? sieve chat. So t:hu ii this bill is all. effe it mexni; A di rerriru5. bribes. It is nc t e : good as it c,:-i..id be. if we coils ale ii. amcndrn.ent of the Senator front But I .],link .1 is a very good prcrixrs1 a step iii the r?ught direction, sore. I , ,I: t it i:r n,rt doe, _ e:raded. Irl.r. CIIUkce;fJ. May I may .t, :lie ri t.raaf i bu ator Last I really had not describe the tiii, as a t.wthl.es? fig . would like Lila bfti 'o be a saber -tottrye+i tiger. As it comes to the Sen:al.e :i1 crir; got ore big saber tootru. I would 111 :to add the other one. For evervc ate; k , e v that the sax's-toe-shed tiger, v,iW one saber to >tlt-----? Mr_ 1.'RG.1tIE.E . It is bets::r? ha r it tiger F1 all. - Mr. CHU1..CH? It is better th,:ran no at all. But l''r? use Is it right aes.idl see ,slat this t.ger h;a-i bot:tli saber teeth, anc vie can do that tf we pass this a,rn!endr, t.art:. hrr:' PROIIJ f) E. In the 1:s asat,e or this ht'i1., we have sad assistance froerrs ri number of fsects o:f our society interested Approved For Release 2005/06/02 : CIA-RDP77M00144RO01100220033-3 .uus...r.uet?_ WI?.e~i~!~ ... September hppfpygd For RVIM a Rpp-1"/0 q, 9 - 7M RP 01100220033-3 in corporate activity, including the ac- counting profession, business leaders, and most particularly, the Securities; and Exchange Commission. I have already referred to the contributions of the Com- mission in this process. l: now wish to dis- cuss an amendment to S. 3664: Oat the Commission has proposed. Sections 2 and 3 of the bill reflect the proscriptions of certain types of foreign payments. The Commission noted that because the bill contains an absolute pro- vision against certain foreign payments, an argument might be made that the leg- islation reflects congressional concern for the Commission's interpretation of the "materiality" standard for determining the disclosure obligation established by other sections of the Federal securities laws. To alleviate this specific problem, the Commission suggested an express dis- claimer in the legislation that the bill would not affect the ability of the Com- mission or private parties to induce dis- closure of material facts to investors or others under other provisions of the Fed- eral securities laws. I think that the Commission's careful articulation of the factors to be con- sidered in determining the obligation to disclose certain facts regarding c. ues- tionable or illegal corporate payments and practices, contained in the corr.pre- hensive report submitted to my commit- tee in May of this year, clearly indicates that it is proceeding in a thoughtful and responsive' manner in this area, a:-.id I note that the general, standard for 'ma- teriality" subsequently adopted by the Supreme Court in TSC v. Northwa;7, 44 U.S.L.W. 4852 (June 14, 1976), comports with the definition advanced by the Commission as amicus curiae. As the Commission itself notes., it was not the intention of the draftsmen of S. 3664, or of my committee in approving that bill, in any way to question or diminish the work of the Commission over the ,years in giving content to the concept of mate- riality. Because I think that the bill and its legislative history are clear ;ri this regard, I consider it unnecessary to en- cumber the legislation to the specific language proposed by the Commissicrl. Mr. TOWER. Mr. President, 1: "ield myself such time as I may require. I would like to note that the saber- toothed tiger is now extinct [laughteri and I cannot imagine my distinguished progressive and liberal friend from Idaho characterizing a bill that he advocates as a saber-toothed tiger. It really is Neanderthal politics. We will not get into that. I have been accused of that. Mr. President, I would. like to just. re- emphasize a few points. The proposal of the Senator from Idaho, it should be understood, clearly understood, is not limited to transactions between U.S. concerns and foreign governments. It would also require the reporting of legiti- mate payments, fees, commissions made by U.S. publicly held corporations to private foreign firms. A sweeping dis- closure of this nature is totally unwar- ranted and without justification. As the Secretary of Commerce points ou, it would place an enorrr:tous paperwork burden on American industry. Iieynra; that; I: mitrbi; :note it places Arneric t: t i;toe:ses at a competitive disadvan r acre. 'I'hi; Er a :)?:ttsion ?or disclosure, not prohibi::ir.n. i'he c,on:m,.ittee bill pre- scribes twat to aribes be paid. It imposes a criminr1 1.)rohibitloii. on the ,Payment of bribe;; 7 I.s Will is one that n,.qulires. the disclosure of ;c great. amount of In- format io it, under normal c:lrcum- stancei vivid be coniridered pr'oprie- tar y 11; c,nnt: .,i_~, result in the embarrass- merit no Ott iv of foreign governments, out psi'; r. sI! r crei;n firrirrs to the extent that t:nr!r ari;,ld not; s tint to trade with An;eri::itr. Sir n= 'u vir,:ce; In operate under these dr?rto :1o'ittions sac w it ra time for us to impose In- hiti.tianr or the ability of the 'United ,3to tes c d':, !r a mess abroad. We have a balan l~r -ot )ay? nmerits problem, and we ::crust rernalt cornpetii:,ive in the inter- narional.-ia r c e t plac es i poirr, :nli :r!riher there. is; also a pro- vis::on r:r this .rt,.endit cut that requires 1'orrirtn ". uh anal:rsis and annual re- portint; of the dtsclo;ecl. transaction.'r'his appears In ]r c be ;i serious and direct mt?erierence in the till; irs of other cotm- I;rles? ,err tap!; eve;:; in tne domestic af- I'ai-s of other co.rattles. I do not believe I t is aphr i pr i. ] to to pu:t tire: U.S. Govern- iner;t ir. 'he 1)ositiorr of annually co?m- ine:cttirig to 11 to :acorn], fiber of another country s1d :uerr giving the report wide !;ireulaL! ::!. This ptrr vts, on is is my view, extremely dangerou~ ar.,i it deserves very careful consideration by n. )t only the Senate 13ankisr ' 'orrimittee but by the Commtit- 'l ee on I 'c red v n ]y,eta lions as well. In ad- dition, I 1-Iii"a'e should obtain detailed comment and testimony I'.rom the I e- partmer,r: of -;t ;r e on the potential ad- 'erre inr,':tcr t might have on the con- iurt o1 1. te;-ear dipi:;macy. I hop r t.hi : :ide '711 not rush into c:onsrdera'rot )I this nit::;ter now. a hope the an, en in!t: tr will not be adopted. I think it '.. e !n:er.,Iment Is adopted it will r-ound r..i a; Ii. I knell :or what we are t:-ea I ly' to^, rzri'' ! n do, aracl that is to spe- t ifical]'i osrt.trre bribery. This is a, mat- ter of sort e .r!:rericy 11tilt, must be dealt ',vito, Eli;t ion ru i=e as Secretary Ric.harrd- s or: slat:: tt1:. ataend.r:neni; is too inroad, t nr, at I it :;L!110 tmnt. too narrow; it ~eoparoi2lr, : n1ities Exchange (iii U.S.C. 'lts,t is amended by ine:ertlitti "(l)" i?trr bI c:nd be adding at the eatd thereo' th Ilo. -. "(2r F 111(1 t pent ii It ,>m+ ,o at.,te any ma er:ul I I ', . .laKe, ,at.el lk tl.r,y ii .?a: lie(,, .a. r Iit tb2 1 '?,r:' nista'tices under iv i. 1, they wt re not nsisl,eading - an .._, r:0U1 tai: I :: roll ill wli.h al:,y ,'>.an I .,~., ;.101:. or au :i an Issuer whi,ih has a . i of se-.?u . t . tex't', p..,.tI'stlant Ic S,?;tai, of L,a II in required t.; fit, _ nor'-:; r-`, ,at, :') .iee:tof 11](dl of 1.1.1, or I, co ,Cer1.1 a'it.h env examin&,l.'11 at 1.1t Alt it :ea. wii;b respect to fa, curt,) tit:: register ^1 r ? uric ictered ulid ^: tOt curL,.le:, .at . o -Cll. . Sec. i'he "c u tiles Eaeh.axtge e4.rt c;i 1 i!1+ s sine'itei b, isertl ig after sect ._..V' foll(wi I g new 'ieCtlcn. : F,NtS TO OFrICRAI.s 1,(,> , 3t-A. s716.1t be l tnlaaYl,1 f(tr I':..1 tastier. ,vt.ieh i,as IS class o'' securltcit Yet,: . tered l.v,rttuai'.t ',o se,.tion :.a of Viol t;,,' ar wh:i'th tit req.nred tea file reportit ;rune: it., to sectcax 16:d 1 of this titre to ntake u:vE u the malls ore' tiny is"aims or Lis';rit ' ena.;t ,. of ;.nteratate t'orrnrte-ce corruptl,,r ,o )r'et pay or pnimit,c o pa:', or authoi.t:e ,he pt5 meat ,i'? an, nicne, or to offer give ol, 'proinlmit to g:..(, or authorize the giving '11: anvttli 15 ,)f N::,Ite 14l-6- .. 1) Jill' 1)(-toll WI 0 rS all ofliClit]. 3f I.. it') Approved For Release 2005/06/02 : CIA-RDP77M00144RO01100220033-3 : _: 'IIIIIt^ 1 SepternbelAygr r~ffor ReIt~,LaM S( A Il ~ ~1I00gJ O1 100220033-3 sign government or instrumentality thereof for the purpose of inducing that individual- - __"(A) to use his influence with it foreign government or instrumentality, o:r "(B) to fail to perform his official func.- _tions, to assiJ such issuer in obtaining or retaining business for or with, or directing; business to, any person or influencing Iegis.- latlon or regulations of that government or instrumentality, "(2) any foreign political'party or official thereof or any candidate for foreign political office for the purpose of inducing that party, ofli'cial, or candidate- "(A) to use its or his influence with a for- eign government or instrumentality thereoll, or. "(B) to fail to perform its or his official functions, to assist such issuer in obtaining or retaining business for or with, or directing business to, any person or influencing legislation or regu- lations of that government or instrumental- ity; or "(3) any person, while knowing or having reason to know that all or a portion of euelx money or thing of value will be offered, given:, or promised directly or indirectly to any in- dividual who is an official of a fote:lgn govern- ment or Instrumentality thereof. or t:) any foreign political party or official thereof or any candidate for foreign political office.. for the purpose of inducing that individualt official, or party- "(A) to use his or its influence with r:( foreign government or instrumentality, or "(B) to fall to perform his or its official functions, to assist such Issuer In obtaining or retainin is business for or with, or directing business to. any person or influencing legislation or regu-. 'lations of that government or Instrumental- ity.'.. PAYMENT:; To OFFICIAL." Stec. 3. (a) It shalt be unlawful .for any do?- mestic concern, other than an lasuer which Is, subject to section 30A of the Sccuritiec; Exchange Act of 1934, to make use of the, malls or of any means or instrumentality or Interstate commerce corruptly to offer, pay or promise to pay, or authoritze the l)aymeni. of, any money, or to offer, give, or promisee to give or authorize the giving of, anything, of value to- (1) any individual who Is an official of a? foreign government or instrumentality there, of for the purpose of Inducing that Individ- ual- - (A) to use his Influence with a foreign government or Instrumentality, or (B) to fail to perform his official func- tions, to assist such concern in obtaining o:, retain.. ing business for or with, or directing burl. ness to, and person or influencing legisla-. tion or regulations of that government oil instrumentality. (2) any foreign political party or official thereof or any candidate for foreign political office for the purpose of inducing that party, official, or candidate-- (A) to use Its or his influence, with a for- eign government or instrumentality thereof, or (B) to fail to perform its or hii; official functions, to assist such concern in obtaining or retain.. Ing business for or with, or directing business to, any person or influencing legislation or regulations of that government or instru- mentality; or (3) any Individual, while knowing or hay-? Ing reason to know that all or a portion oil Such money or thing of value will be offered, given, or promised directly or indirectly to any Individual who Is an officiaLof it. foreign government or instrumentality thereof. or to Or an.), canctictate for foreign political office, for the pua]x:m of inducing that individual, ofciaf or prx,y.-- (A) 0 use his or Ila; influence with a for- eign guverrcne'nt or instrumentality, or (B) to fiui',: to ;)er:form his or its official functions, to crceot elcs-li concern In obtaining or re- taining bunin,en for or with, directing busi- ness to. any person or influencing legislation or re;rnlat;:s)LLe of that government- or inacrunaenl.iil;i t y. (bl hny perno:n who willfully violates this sectiorr -hail. upon co:e.viction be fined not more than 810,000, or Imprisoned not more than taro yean3, or both. (c) As u,-ed in tt.is se;tion- (I) the terra ".lornestic oneeru" means an individual Who is .a citizen or national of the U'rd,taed Estes, or any corporation, part- nership. asociation, ioint>"stock company, business trust, or unincorporated organiza- tion whicll is ow:oerl. Or controlled 'by in- dividuals -orbo are citisens -or nationals of the United li testes, wld.ch has its principal place Of bu]slnees in the United States, or which is orgarrtrod under the laws of a State of the IJnit:ed Stable or any territory, posses- sion, or commorxwealt.h of the United States; and. (2) aaie ttsrru'?intoratacte a:l0anieace" means trade, contln~=.rce, transportation; or com- munication arrong the several States, or be- tween 1mt' Pr.: cosign country and any State, or betueei;. ia" i3tete and any place or ship outside thereof, and intch term Includes the intrw,tate vie of a telephone or other inter- state near a r,f corircruriloatlon or any other interstate lccatril:n ocl-,atity. Mr. PN?I_.U.4IRF'. Air. President, I move to reconsider the vote by which the bill w'a.; Psiraeel. hfr. ' "Ci'ct' t Ih . I in.c:w'Ic to I ay that :motion on the ta,tt'e.- The mutlnrt tc Ili on the table was agreec. to. C^E >ivc)1;_(3F( Vl:r'CI--H.R. 14260 Mr. U.1'11C)LPH ]fir.. President, I ask unar.msou ; roil: sot 4tb.at my vote on H.R. 14201) :,n 1'riday Se.i:1ernber 10, 1976, be changed i?rorr, ` to "nay" and that the Ile-, rn innnt RECoen reflect my nega- tive t'cr e. 'I'he pl-(. tIDDIG OFFICER Wr. Mc- Gove srl i VvithoiA, :eblectfon, it Is so or- derF-d - Alt. PCOVii:R. Mr President, I suggest the abr:ence (if a quolrunt. ThtE' 'RI,sl::)m'GF OF' FILER. The clerk will cail ttic ra11. T' l o a.: ]-::slot legislative clerk pro- eeedcu Co call the roll].. Mr. lkice,C1%rE:1RN Mr. President, I ask unan:in e-us consent that the order for the quc.ruin caJibe :res,-inded. _Thee I'HIF:S:CD:1Wt?.; OFFICER (Mr. HATxra'.VA.'). 1Nitllouii objection, It is so ordered, FAR VIER,-:L'f:)-CU.Ni3LIMER DIRECT MA.R.KE'C1:RTC! ACT--1:70NFER:ENCE REPORT Mi?. Mc(IK)VERN. itIr. President, I sub- mit e, report of tt,e committee of confer- ence on H.R. 10339 and ask for its Im- mediat e consaderiitlon. The PRE SEXING OFFICER (Mr. HATB:n WAY) . The report will be stated by title. , s 15.E ;: The assistant legislative clerk reil,c,. as follows: The oommittee