National Security Foreign Investment Reform and Strengthened Transparency Acy of 2007

NATIONAL SECURITY FOREIGN INVESTMENT REFORM AND STRENGTHENED TRANSPARENCY ACT OF 2007

* Ms. WATERS. Mr. Chairman, as you know, I was a strong supporter of H.R. 5337, the National Security Foreign Investment Reform and Strengthened Transparency Act of 2006, which passed the Financial Services Committee as well as the House in the 109th Congress. First, I want to again acknowledge the work of our distinguished chairman of the Committee of Financial Services, Mr. FRANK and Mr. GUTIERREZ, chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology for supporting this bill. Let me also thank Ms. MALONEY, a member of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, for again introducing this important national security legislation, H.R. 556. In addition, the bill now has more than 50 co-sponsors.

* Last year, the House approved a comprehensive set of reforms to the Committee on Foreign Investment in the United States (CFIUS) process. It is a testament to the diligence of Ms. MALONEY and other members of the Committee on Financial Services that H.R. 556 is being considered so early in this session.

* It has been almost a year since we learned of the Committee of Foreign Investment's (CFIUS) activities related to Dubai World Ports and the implications of the proposed deal for national security. I can genuinely say that the members of the Committee on Financial Services have been most directly involved in this issue since that time.

* The bill the House passed last year, H.R. 5337, was designed to reform the CFIUS process based on the information gleaned from earlier hearings on the subject. We have heard about the negative impact of cutting off foreign direct investment in the U.S. However, it would be foolish to assume that we would take any such steps to prohibit foreign direct investment. At the same time, we need to consider safeguards to ensure that the CFIUS process is consistent with the original intent of the Congress concerning national security and investments.

* It is time that CFIUS operated within the law, and that it is made clear who is responsible for what in the decisionmaking process. Another critical issue is how decisions are actually made, and what entity is principally responsible for protecting the national security interests of this Nation as they pertain to foreign direct investment.

* This bill enables CFIUS to unilaterally initiate a review where an issue of concern is raised; any foreign government backed deal would be subject to review; both the Secretaries of the Treasury and Homeland Security must sign off on reviews, while the Homeland Security Secretary would be vice-chair of the Committee; and all reviews are subject to review by the Director of National intelligence.

* In addition, everyone knows that transparency and accountability were, in part, at the heart of the congressional uproar over the Dubai World Ports deal. Importantly, H.R. 556 like its predecessor bill requires that CFIUS report biannually to Congress on its activities. This is strong legislation that will only make Congress' job less difficult on the issue of national security and foreign direct investment.

* I urge my colleagues to support H.R. 556 without any weakening amendments. Unfortunately, there are those who would have you believe that the bill in not balanced. I would submit that the bill represents a comprehensive well-balanced measure in view of the global situation. Indeed, this bill will not undermine foreign investment in the U.S.

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