DATE=8/6/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-236601
TITLE=CONGRESS/  STATE SANCTIONS (L)
BYLINE=PAULA WOLFSON
DATELINE=CONGRESS
CONTENT=
VOICED AT: 

INTRO:  AS THE U-S HOUSE OF REPRESENTATIVES MOVES TOWARDS ITS 
LONG, AUGUST RECESS, MEMBERS STAYED IN SESSION LATE INTO 
WEDNESDAY NIGHT, TRYING TO FINISH WORK ON IMPORTANT SPENDING 
BILLS.  PROGRESS SLOWED WHEN THEY WERE CONFRONTED WITH A STICKY 
TRADE ISSUE -- THE ABILITY OF INDIVIDUAL U-S STATES TO IMPOSE 
SANCTIONS ON OTHER COUNTRIES.  V-O-A'S PAULA WOLFSON HAS THE 
STORY FROM CAPITAL HILL.

TEXT:  THROUGHOUT AMERICA'S HISTORY THERE HAVE BEEN OCCASIONAL 
POWER STRUGGLES BETWEEN THE FEDERAL GOVERNMENT AND THE STATES.  
ONE OF HE CURRENT TROUBLE SPOTS DEALS WITH TRADE.  A FEW STATES 
HAVE IMPOSED SANCTIONS ON FOREIGN GOVERNMENTS.  FOR EXAMPLE, 
MASSACHUSETTS PENALIZES FIRMS BIDING FOR STATE CONTRACTS IF THEY 
DO BUSINESS WITH BURMA -- A FACT THAT HAS CREATED TROUBLE WITH 
THE WORLD TRADE ORGANIZATION.  OHIO DEMOCRAT DENNIS KUCINICH 
URGED THE HOUSE OF REPRESENTATIVES TO DENY FUNDS FOR ANY FEDERAL 
LEGAL CHALLENGE TO A STATE OF LOCAL LAW INCONSISTENT WITH 
INTERNATIONAL AGREEMENTS.

                     //KUCINICH ACTUALITY//

         ACCORDING TO THE GATT (GENERAL AGREEMENT ON TARIFFS AND 
         TRADE) AND NAFTA (NORTH AMERICAN FREE TRADE ASSOCIATION)
         IMPLEMENTING LEGISLATION, THE ADMINISTRATION CAN SUE TO 
         PREEMPT THE LAW AND ENFORCE THE W-T-O DECREE.

                       //END ACTUALITY// 

MR. KUCINICH  STRESSED A NUMBER OF STATE AND LOCAL GOVERNMENTS 
ARE CONSIDERING SANCTIONS LAWS, INCLUDING NEW YORK CITY AND 
CALIFORNIA.  HE SAID IN SOME AREAS FEAR OF LEGAL ACTION HAS HAD A
CHILLING EFFECT.

                 //OPTIONAL KUCINICH ACTUALITY//

         EARLIER THIS YEAR THE STATE OF MARYLAND CONSIDERED 
         PASSING A SELECTIVE PURCHASE LAW TO PROMOTE HUMAN RIGHTS
         AND TO CORRECT ENVIRONMENTAL ABUSES IN NIGERIA.  THE 
         FEDERAL GOVERNMENT SHOWED UP IN ANNAPOLIS TO WARN 
         LAWMAKERS THAT THE MARYLAND LAW WOULD BE GATT-ILLEGAL.  
         THE THREAT OF A FEDERAL LAWSUIT BACKED UP THE STATE 
         DEPARTMENT'S OFFICIAL WARNING.  IN THE FACE OF SUCH 
         PRESSURE MARYLAND BACKED DOWN.

                   //END OPTIONAL ACTUALITY//

THE EFFORT BY THE OHIO CONGRESSMAN TO PREVENT THE FEDERAL 
GOVERNMENT FROM CHALLENGING STATES SANCTIONS LAWS BROUGHT THE 
CONGRESS INTO AN ALREADY-COMPLEX CONTROVERSY.  ILLINOIS 
REPUBLICAN PHIL CRANE -- THE CHAIRMAN OF HOUSE SUBCOMMITTEE ON 
TRADE -- ARGUED THE MEASURE PROPOSED BY CONGRESSMAN KUCINICH  
WOULD HARM U-S RELATIONS WITH KEY TRADING PARTNERS.

                       //CRANE ACTUALITY//

         THIS IS A FLAWED AMENDMENT PUT FORWARD BY THOSE WHO 
         DESIRE TO BUILD WALLS OF PROTECTION AROUND THE UNITED 
         STATES WHILE SACRIFICING THE BENEFITS OF A FUNCTIONING 
         INTERNATIONAL TRADING SYSTEM FOR OUR WORKERS AND THEIR 
         BUSINESSES.

                      //END ACTUALITY//    

MR. CRANE SAID THE U-S GOVERNMENT HAS NEVER SUED TO OVERTURN A 
LOCAL SANCTIONS LAW AND PROBABLY NEVER WILL.  OTHER ARGUED IT IS 
THE RESPONSIBILITY OF THE FEDERAL GOVERNMENT TO CONDUCT FOREIGN 
POLICY.  

THE DEBATE WAS HEATED, BUT THE EFFORT TO DENY MONEY FOR FEDERAL 
CHALLENGES TO LOCAL SANCTIONS LAWS FELL SHORT IN THE HOUSE.  TWO 
HUNDRED LAWMAKERS VOTED TO DENY THE FUNDS AND 228 VOTED TO KEEP 
THEM IN THE BUDGET FOR THE DEPARTMENTS OF COMMERCE, STATE AND 
JUSTICE.  THE SENATE HAS ALREADY COMPLETED WORK ON ITS VERSION OF
THE BILL WITHOUT ANY CONSIDERATION OF THE CONTROVERSY SURROUNDING
STATE AND LOCAL SANCTIONS.  CONGRESS IS NOT LIKELY TO REVISIT THE
ISSUE THIS YEAR. (SIGNED)

NEB / PW / CB-T / WD  



06-Aug-98 4:12 AM EDT (0812 UTC)
NNNN

Source: Voice of America
.