Claiborne Pell: “I share the Senator's concern over the expropriation of U.S. citizens' properties. I believe current law already…”

“I share the Senator's concern over the expropriation of U.S. citizens' properties. I believe current law already adequately addresses this issue by requiring the United States to vote against loans to countries that have nationalized or expropriated the property of U.S. citizens without prompt, adequate, and effective compensation. I fear that this amendment goes too far in trying to address this issue. The only multilateral development bank that does not currently have such a requirement is the EBRD. The Foreign Relations Committee has attempted to rectify this and accepted a Helms amendment in the fiscal year 1994 foreign assistance authorization bill to extend the same expropriation requirements to the EBRD as all the other banks. I supported this amendment and I hope it will eventually become law. Unlike current law, the amendment being offered by the Senator from North Carolina today requires the United States to vote against a loan to countries that have not provided adequate compensation within a period of 3 years. Resolving expropriation cases is an extremely complicated and lengthy process that could involve local courts and international arbitration.”