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The PRESIDING OFFICER (Mr. Burns). The clerk will report the pending bill.

The assistant legislative clerk read as follows:

A bill (S. 2334) making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 1999, and for other purposes.

The Senate resumed consideration of the bill.


Mr. McCONNELL. Mr. President, the distinguished Senator from Texas has patiently been waiting to offer an amendment.

The PRESIDING OFFICER. The Senator from Texas.


Mrs. HUTCHISON. Mr. President, I call up amendment No. 3500.

The PRESIDING OFFICER. If there is no objection, the pending amendment is set aside. If there is no objection, the pending amendment will be the McCain amendment No. 3500.



Mrs. HUTCHISON. Mr. President, I send a second-degree amendment to amendment No. 3500 to the desk.

The PRESIDING OFFICER. The clerk will report.

The assistant legislative clerk read as follows:

The Senator from Texas [Mrs. Hutchison], for herself and Mr. McConnell, proposes an amendment numbered 3526 to amendment No. 3500.

Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:

Add the following proviso: (5) North Korea is not providing ballistic missiles or ballistic missile technology to a country the government of which the Secretary of State has determined is a terrorist government for the purposes of section 40(d) of the Arms Export Control Act or any other comparable provision of law.

Mrs. HUTCHISON. Mr. President, I will speak briefly about what Senator McCain and I are trying to do.

My amendment says that no funds will be contributed to North Korea until the President has certified that North Korea is not providing ballistic missiles or ballistic missile technology to a country, the government of which the Secretary of State has determined is a terrorist government.

This adds to Senator McCain's amendment which has the same prohibition of funding for North Korea if they are continuing to build a nuclear weapon.

Senator McCain and I are clearly saying that the United States will not continue to fund an agreement with North Korea that we know is being violated. The McCain amendment deals with the nuclear capability North Korea appears to be building. It would restrict the use of funds for the Korean Peninsula Energy Development Organization pending a Presidential certification that North Korea has stopped its nuclear weapons program as it has promised to do. My amendment adds the requirement that North Korea is not transferring ballistic missile technology to other terrorist countries.

Mr. President, this week, we saw what trying to coerce and reward a totalitarian dictatorship will achieve. North Korea launched a two-stage ballistic missile toward Japan, a country which has provided emergency food relief to North Korea and wound up having a ballistic missile pass through their air space as thanks.

North Korea has admitted selling ballistic missiles to raise hard currency. It has made repeated threats to restart its nuclear program, claiming that the United States has not honored its obligations. Recently we learned of evidence that the North Koreans are ignoring their part of the agreement and building a new underground site for nuclear weapons development.

I raised concerns 4 years ago when the Clinton administration proposed this framework agreement. It seemed to be an all-carrot-no-stick approach to North Korea. The agreement was to help develop a peaceful nuclear program giving them 500,000 tons of heavy fuel oil. I was concerned that the nuclear weapons program would continue and that the fuel oil that we promised would be diverted to military use. I am sorry to say both seem to have occurred. The fuel was diverted almost immediately for military use.

Since signing the agreement, the North Koreans have also continued to conduct military operations against South Korea, sending spy submarines into South Korean waters and discharging commandos on to South Korean territory. This is hardly the behavior of a partner to an agreement, and sending them a no-strings gift of 35 million American taxpayer dollars is hardly a responsible act for the U.S. Congress to make.

The North Korean launch this week of the ballistic missile over the airspace of Japan was truly a shot across the bow of the civilized world. North Korea was warned beforehand that testing this type of missile would have a direct impact on our negotiations. They ignored the warning. We must make it clear to the North Koreans that we cannot and will not disconnect North Korean conventional military activity from the nuclear issue. Their failure to meet their obligations not to build nuclear weapons, nor to sell the technology to rogue nations, cannot be disassociated from our contribution to their country. We must stop rewarding dangerous North Korean provocations. This amendment will ensure that we do just that.

Mr. President, I urge adoption of the second-degree amendment to the McCain amendment.

Mr. McCONNELL addressed the Chair.

The PRESIDING OFFICER. The Senator from Kentucky.

Mr. McCONNELL. Mr. President, I support the amendment by Senator Hutchison modifying the bill's language on funding for the Korean Energy Development Organization, which we refer to as KEDO.

I would like to step back for a moment to 1995, shortly after the agreed framework was signed in October of 1994. By March of 1995, there was the first evidence that the North Koreans were cheating. In hearings before this subcommittee and in writing, I challenged the administration's assertions that the North was in full compliance and that no U.S. oil was being diverted. Eventually, it became clear that the North was cheating and diverting oil. Although new monitoring procedures were established, there was no suspension of oil or a threat to cut off the program. I am convinced that this is when the North learned that they could engage in a pattern of challenge, deception and noncompliance without any penalty at all.

In fiscal year 1997, the Senate had an extensive debate about providing U.S. assistance to provide fuel oil to North Korea and to support administrative expenses for KEDO. The bill my subcommittee reported to the Senate capped funds at $13 million, half the administration's request, and provided the funds in three stages, requiring certification that the fuel was not--I repeat, not--being diverted for military purposes.

At that time, many of us were uncomfortable continuing any aid to this terrorist regime, let alone doubling the amount available which the administration had requested. In its statement of policy, this is what the administration had to say at that time about any curbs, cuts or conditions:

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Among our most serious concerns are the restrictions placed on the U.S. contributions to KEDO, especially the funding cap that reduces the request by nearly half. This funding is inadequate to meet our commitment to support the North Korea framework agreement and is unacceptable to the Secretaries of State and Defense. KEDO is one of the pillars of U.S. nonproliferation policy which seeks to ensure strategic stability in the Pacific. Our very modest $25 million request for funds helps continue the reduction of North Korea's nuclear weapons capacity, while leveraging strong burdensharing contributions from South Korea, Japan and other countries. The administration strongly urges the committee to remove the cap . . . and drop the needlessly restrictive certification language.

Again, that is what they had to say.

Regrettably, the administration prevailed on this floor in a 73-to-27 vote allowing full funding for KEDO. So I lost that one, I say to my friend from Texas.

Mr. President, I think it is now safe to say that on both the nonproliferation and burden-sharing front, KEDO is a bust.

All last week, the administration was too busy with bilateral talks in New York to brief the committee on the status of negotiations over allegations disclosed in the press that the North is building a secret facility to house a nuclear reactor replacing the one sealed under the Agreed Framework.

With those talks still underway, as the Senator from Texas pointed out, Monday--this week--for the first time in more than 5 years, North Korea carried out a flight test of a ballistic missile which the South Korean Government estimates has a range of over 1,200 miles. The first stage of the missile landed in waters between Russia and Japan, with the second stage flying over Japanese territory and falling into the Pacific. Understandably, the Japanese have withdrawn their pledge of billions of dollars for the construction of an alternative reactor--a perfectly logical response to what happened Monday.

Mr. President, if U.S. funding for KEDO is the pillar of our nonproliferation policy and the key to burden sharing, I think it is time we start building a new foundation for our policy. Secret nuclear facilities, flight testing, ballistic missiles, and who knows what other activities are not a nonproliferation policy, they are simply a nonpolicy.

Today, I say to the Senator from Texas, I think her amendment is excellent and is exactly the direction in which we should go. The administration will complain that these new conditions are not consistent with the Agreed Framework, that the North did not agree to suspend its nuclear weapons program in return for $30 million, they only agreed to freeze part of it.

Mr. President, it makes no sense for the United States to continue to pay for an agreement which fails to protect our allies and our interests in the Pacific. Monday's tests, along with the past pattern of deception and diversion, should convince all of us we should not spend millions more from our limited foreign aid coffers to prop up a government determined to acquire and to sell nuclear weapons.

As I mentioned previously, this is hardly the first time we have debated the administration's flawed policy on the peninsula. We have had years of compromise, capitulation, and concessions from the administration. The North blusters and blackmails; there is tough talk followed by no action or, worse still, concessions for more fuel and food.

Thirty-six thousand American troops standing guard in the South deserve more than that. Once and for all, it should be absolutely clear to the North, we will not pay their way to test, deploy, or sell nuclear weapons. We will not pay for the appearance or possibility of compliance with the Agreed Framework.

Again, I commend the Senator from Texas. I think her amendment is right on the mark and I congratulate her for it.

Mrs. HUTCHISON addressed the Chair.

The PRESIDING OFFICER. The Senator from Texas.

Mrs. HUTCHISON. I want to thank the Senator from Kentucky, who is a cosponsor of this second-degree amendment, for helping us with it because obviously, when the committee was putting together its bill, we did not know of North Korea's provocative actions of last week.

I think it is imperative that the Senate act very decisively to say that we are not going to continue to appease a country that is clearly selling technology to rogue nations that would harm our own allies and, furthermore, is breaking an agreement they made with us in return for which we would have assisted the people of North Korea in developing peaceful energy sources.

I hope, with all my heart, that North Korea will back up, that it will keep its commitment to stop building a nuclear weapon. I hope that it will step back and stop selling ballistic missile technology to rogue nations. Then it would be eligible for the money that has been fenced in this bill.

But until they do, it would be highly irresponsible for the U.S. Senate to go forward with a no-strings-attached gift of 35 million taxpayer dollars that are against the interests of the United States and all of our allies.

Thank you, Mr. President. And I thank the Senator from Kentucky for his leadership on this issue.

Mr. McCONNELL. Mr. President, I thank again the Senator from Texas and ask unanimous consent that her amendment be temporarily laid aside.

I see the Senator from Arizona is here. We have a time agreement on his amendment. I yield the floor.

The PRESIDING OFFICER. Without objection, the pending amendment is laid aside. The Senator from Arizona is recognized.

Mr. KYL. Thank you.