[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
EXPRESSING PROFOUND CONCERN ABOUT THE ONGOING POLITICAL, ECONOMIC,
SOCIAL AND HUMANITARIAN CRISIS IN VENEZUELA, URGING THE RELEASE OF
POLITICAL PRISONERS, AND CALLING FOR RESPECT OF CONSTITUTIONAL AND
DEMOCRATIC PROCESSES; AND THE NICARAGUA INVESTMENT CONDITIONALITY ACT
(NICA) OF 2016
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MARKUP
BEFORE THE
SUBCOMMITTEE ON
THE WESTERN HEMISPHERE
OF THE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
ON
H. Res. 851 and H.R. 5708
__________
SEPTEMBER 15, 2016
__________
Serial No. 114-234
__________
Printed for the use of the Committee on Foreign Affairs
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COMMITTEE ON FOREIGN AFFAIRS
EDWARD R. ROYCE, California, Chairman
CHRISTOPHER H. SMITH, New Jersey ELIOT L. ENGEL, New York
ILEANA ROS-LEHTINEN, Florida BRAD SHERMAN, California
DANA ROHRABACHER, California GREGORY W. MEEKS, New York
STEVE CHABOT, Ohio ALBIO SIRES, New Jersey
JOE WILSON, South Carolina GERALD E. CONNOLLY, Virginia
MICHAEL T. McCAUL, Texas THEODORE E. DEUTCH, Florida
TED POE, Texas BRIAN HIGGINS, New York
MATT SALMON, Arizona KAREN BASS, California
DARRELL E. ISSA, California WILLIAM KEATING, Massachusetts
TOM MARINO, Pennsylvania DAVID CICILLINE, Rhode Island
JEFF DUNCAN, South Carolina ALAN GRAYSON, Florida
MO BROOKS, Alabama AMI BERA, California
PAUL COOK, California ALAN S. LOWENTHAL, California
RANDY K. WEBER SR., Texas GRACE MENG, New York
SCOTT PERRY, Pennsylvania LOIS FRANKEL, Florida
RON DeSANTIS, Florida TULSI GABBARD, Hawaii
MARK MEADOWS, North Carolina JOAQUIN CASTRO, Texas
TED S. YOHO, Florida ROBIN L. KELLY, Illinois
CURT CLAWSON, Florida BRENDAN F. BOYLE, Pennsylvania
SCOTT DesJARLAIS, Tennessee
REID J. RIBBLE, Wisconsin
DAVID A. TROTT, Michigan
LEE M. ZELDIN, New York
DANIEL DONOVAN, New York
Amy Porter, Chief of Staff Thomas Sheehy, Staff Director
Jason Steinbaum, Democratic Staff Director
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Subcommittee on the Western Hemisphere
JEFF DUNCAN, South Carolina, Chairman
CHRISTOPHER H. SMITH, New Jersey ALBIO SIRES, New Jersey
ILEANA ROS-LEHTINEN, Florida JOAQUIN CASTRO, Texas
MICHAEL T. McCAUL, Texas ROBIN L. KELLY, Illinois
MATT SALMON, Arizona GREGORY W. MEEKS, New York
RON DeSANTIS, Florida ALAN GRAYSON, Florida
TED S. YOHO, Florida ALAN S. LOWENTHAL, California
DANIEL DONOVAN, New York
C O N T E N T S
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Page
MARKUP ON
H. Res. 851, Expressing profound concern about the ongoing
political, economic, social and humanitarian crisis in
Venezuela, urging the release of political prisoners, and
calling for respect of constitutional and democratic processes. 2
Amendment in the nature of a substitute to H. Res. 851 offered
by the Honorable Jeff Duncan, a Representative in Congress
from the State of South Carolina, and chairman, Subcommittee
on the Western Hemisphere.................................... 8
H.R. 5708, To oppose loans at international financial
institutions for the Government of Nicaragua unless the
Government of Nicaragua is taking effective steps to hold free,
fair, and transparent elections, and for other purposes........ 15
Amendment in the nature of a substitute to H.R. 5708 offered by
the Honorable Albio Sires, a Representative in Congress from
the State of New Jersey...................................... 28
APPENDIX
Markup notice.................................................... 46
Markup minutes................................................... 47
Markup summary................................................... 48
EXPRESSING PROFOUND CONCERN ABOUT THE ONGOING POLITICAL, ECONOMIC,
SOCIAL AND HUMANITARIAN CRISIS IN VENEZUELA, URGING THE RELEASE OF
POLITICAL PRISONERS, AND CALLING FOR RESPECT OF CONSTITUTIONAL AND
DEMOCRATIC PROCESSES; AND THE NICARAGUA INVESTMENT CONDITIONALITY ACT
(NICA) OF 2016
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Thursday, September 15, 2016
House of Representatives,
Subcommittee on the Western Hemisphere,
Committee on Foreign Affairs,
Washington, DC.
The subcommittee met, pursuant to notice, at 10:00 a.m., in
room 2172 Rayburn House Office Building, Hon. Jeff Duncan
(chairman of the subcommittee) presiding.
Mr. Duncan. The subcommittee will come to order. Pursuant
to notice, we meet today to mark up two bipartisan measures and
I think this is the first markup of this subcommittee since I
have been the chairman, so kind of a momentous day.
As members, we were notified previously to ensure that we
can move expeditiously to our hearing. We will consider today's
items en bloc, and so without objection the following items
provided to your offices earlier this week will be considered
en bloc and considered as read: House Resolution 851,
expressing profound concern about the ongoing political,
economic, social, and humanitarian crisis in Venezuela, and the
Duncan Amendment 73 in the nature of a substitute
to, deg. H.R. 851. Members will please note that two
words have been stricken from page 3 per agreement with the
majority and minority from the ANS that was previously
circulated. We apologize for that.
The second bill be H.R. 5708, the Nicaraguan Investment
Conditionality Act of 2016 and also the Sires Amendment No. 16
in the nature of a substitute, H.R. 5708.
[The information referred to follows:]
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Mr. Duncan. Without objection, all members may have 5 days
to submit statements and materials for the record. I will now
recognize myself to speak on today's measures.
As the co-sponsor of both pieces of legislation, I want to
applaud the efforts of Representatives Wasserman Schultz and
Ros-Lehtinen for highlighting the U.S. congressional concerns
about the events in Venezuela and Nicaragua and for their
leadership on both of these bills. This subcommittee has held
two hearings on Venezuela. And we will hold a hearing today on
Nicaragua following up the markup.
Ranking Member Sires and I have also worked closely
together in our authoring a letter last month to the State
Department and the Treasury Department. This letter was signed
by over 30 Members of Congress and highlights the need to
prioritize Venezuela. These two bills are very timely, given
the deteriorating situations in both countries.
We are all familiar with the humanitarian and political
crisis in Venezuela right now. This week, a new study found
that at least 15 percent of Venezuelans are eating out of the
trash. Almost 90 percent of people fear running out of food.
More than 1.7 million Venezuelans have fled to Colombia to buy
food and medicines since the reopening of that border crossing
last month. Further, although Venezuelan people have made their
wishes known through protest after protest after protest for a
recall referendum to be held this year, President Maduro has
suppressed protesters chanting ``We want food'' and refused to
hold the referendum this year.
I strongly support H. Res. 851 and my amendment in the
nature of a substitute highlights the continuing imprisonment
of U.S. citizens, Francisco Marquez and Josh Holt; recognizes
that democracy is failing in Venezuela; and acknowledges the
efforts of the former President of Spain, Panama, and the
Dominican Republic in calling for a dialogue and efforts of 15
countries in the region calling for Venezuela to hold a recall
referendum without delay.
My amendment also urges President Obama to continue to
stand in solidarity with the Venezuelan people by advocating
that President Maduro hold a free and fair recall referendum by
the end of this year; release all political prisoners,
including U.S. citizens from prison; adhere to democratic
principles; and permit the delivery of emergency food and
medicine.
In Nicaragua, the people will go to the polls on November
6th in an election where President Ortega is running for a
consecutive third term. The opposition has been stripped of
their leading candidates and the First Lady is on the Vice
Presidential ballot, even though Nicaragua's Constitution bars
those related to the President from being a candidate. And
Ortega has refused to allow international election observers.
I am deeply concerned about the impacts of President
Ortega's consolidation of power and I fully support this
legislation authorized by Representative Ros-Lehtinen. Since
today, there appears to be no cost to Ortega for his actions
undermining the democracy and the rule of law in the country in
pursuit of his own interests.
It is my hope that this legislation will support Nicaraguan
people by encouraging Ortega to take steps to begin to show a
respect for democracy, respect for free and fair elections,
respect for the rule of law and respect for human rights in the
country.
So I will now recognize the ranking member for his comments
on today's measures.
Mr. Sires. Thank you to my good friend Chairman Duncan and
Chairman Emeritus Ros-Lehtinen for their efforts in bringing
attention to the political and humanitarian crisis in Venezuela
and to the authoritarian policies of Nicaraguan's President,
Daniel Ortega.
I also want to thank my colleagues on the committee and the
staff from both sides of the aisle who have worked hard to
support the subcommittee's efforts. We are here today to mark
up two timely and bipartisan pieces of legislation, working to
combat the constant, oppressive tactics of both Maduro and
Ortega's regime.
The resolution before us, H. Res. 851, is in response to
the deterioration of basic governance and the resulting
humanitarian crisis currently taking place in Venezuela. Under
Maduro's government, millions of families, women, and children
are suffering from severe shortages of essential medicines,
fuel, and basic needs. It is frustrating to see the Venezuelan
people suffer and struggle to find basic food items when
Venezuela is home to one of the world's largest oil reserves
and has the potential to prosper.
The crisis in Venezuela has also been exacerbated by
widespread public corruption and the alarming level of violence
in the country. On the corruption front, dozens of public
officials are suspected of involvement in drug trafficking and
money laundering. The U.S. Justice and Treasury Departments, as
well as DEA, each have ongoing investigations involving
Venezuela's officials.
Crime and violence have also reached alarming high levels.
According to the U.N. Office on Drug and Crime, Caracas has one
of the highest per capita homicide rates in the world at 120
murders per 100,000 citizens. Despite the massive shortages in
basic essentials and the resulting violence, Maduro's
government refuses to allow humanitarian aid from the
international community into the country.
Maduro also has refused to release the more than 80
political prisoners held by his government. These include
former Mayor Leopoldo Lopez and Daniel Ceballos and U.S.
citizens Josh Holt and Francisco Marquez. In May of this year,
the OAS invoked Article XX of the Inter-American Democratic
Charter which called on the OAS to assess the situation in
Venezuela proving that this is not a U.S. conspiracy as
Venezuela falsely tries to claim, but an urgent concern to all
of our neighbors in the Western Hemisphere.
H. Res. 851 loudly and clearly voices concern of this
Congress regarding the widespread shortages in Venezuela,
urging the Maduro government to allow the delivery of
international aid and support the current actions taking place
in the OAS to restore true democracy to Venezuela.
It is my sincere hope that the administration will
aggressively support this resolution and instruct the
appropriate Federal agencies to do all they can to hold
Venezuela's officials accountable for all the violations of
U.S. laws and human rights.
Regarding the authoritarian policies of Daniel Ortega in
Nicaragua, I am proud to be a cosponsor of the Nicaraguan
Investment Conditionality Act. This legislation calls on the
U.S. to oppose loans at international financial institutions
for Nicaragua until the country takes effective steps to hold
free, fair, and transparent elections.
Since coming to the Presidency a decade ago, Ortega has
always seen a steady decline in political rights, civil rights,
and civil liberties in Nicaragua. For example, in 2009, Ortega
circumvented the legislation and had the Supreme Court packed
with his supporters eliminate Presidential term limits. In
2011, he won election in an election widely deemed by
international and domestic observers as fraudulent. These
undemocratic tactics led to the Millennium Challenge
Corporation ending its 5-year $175 million compact with the
country. Along with its lack of political transparency, Ortega
has also refused to demonstrate fiscal transparency. Since
2012, Nicaragua has not met any of the international standards
for fiscal transparency.
According to the State Department's 2015 Fiscal
Transparency Report, the Ortega administration did not publicly
account for its assistance received from Venezuela, nor did it
audit the majority of Nicaragua's state-owned enterprises. Such
fiscal lapses allow public corruption to thrive.
It has long been the policy of the United States to support
the rule of law, an independent judiciary, democracy, and free,
fair, and transparent elections.
I believe that H.R. 5708 will help bring these critical
elements of freedom and democracy to Nicaragua. If signed into
law, the NICA Act will mean that U.S. representatives at the
International Financial Institution will oppose all loans or
other utilization of funds for Nicaragua unless and until the
country takes effective steps to return to a more democratic
system, including transparent elections, and greater respect
for civil rights.
Again, my thanks to all who have worked on this important
piece of legislation. I urge my colleagues to support H. Res.
851 and H.R. 5708. Thank you.
Mr. Duncan. I thank the ranking member for his words and
his help on this and his amendment.
Do any other members seek recognition to speak on today's
business?
Hearing no further request for recognition, the Chair will
now move that the subcommittee favorably report the items
considered en bloc to the full committee as amended.
All those in favor say aye.
All opposed no.
In the opinion of the Chair, the ayes have it and the
motion is approved and H.R. 5708 and House Resolution 851 are
reported favorably to the full committee as amended.
I want to thank our members and staff for all their
assistance and cooperation on today's markup and the
subcommittee business meeting will stand adjourned and then we
will move right into the hearing. So we will stand adjourned.
[Whereupon, at 10:38 a.m., the subcommittee was adjourned.]
A P P E N D I X
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