Veteran Issues Digest Number 1713

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1. President Bush To Veto National Defense Authorization Act From: Colonel Dan View All Topics | Create New Topic
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1. President Bush To Veto National Defense Authorization Act

Posted by: "Colonel Dan" colonel-dan@sbcglobal.net coloneldan1

Fri Dec 28, 2007 11:25 am (PST)

http://www.whitehou se.gov/news/ releases/ 2007/12/20071228 -3.html

From: PAUL L BALAICH
Sent: Friday, December 28, 2007 12:38 PM

Fact Sheet: National Defense Authorization Act Section 1083: A Danger to
Iraq's Progress
President Bush To Veto National Defense Authorization Act, Work With
Congress To Quickly Pass Technical Fix To Protect U.S. Interests And
Iraqi Assets

President Bush intends to veto the National Defense Authorization Act for
FY08 (NDAA) because particular provisions included in the bill risk imposing
financially devastating hardship on Iraq that will unacceptably interfere
with the political and economic progress everyone agrees is critically
important to bringing our troops home. Section 1083 of the NDAA amends the
Foreign Sovereign Immunities Act, which establishes rules on how foreign
countries may be sued under U.S. law. The amendments would dramatically
change these rules and potentially invite foreign governments to take
reciprocal action allowing suits to proceed against the United States even
for legitimate government activities. Among other things, Section 1083 would
allow plaintiffs' lawyers pursuing Iraq for Saddam-era acts of terrorism to
freeze Iraq's assets in the amount of damages claimed in their lawsuits, and
would permit the relitigation of billions of dollars of lawsuits against
Iraq that have already been dismissed by our courts. At the same time, by
subjecting the democratically elected Government of Iraq to this liability,
the provision would imperil billions of dollars of Iraqi assets at a crucial
juncture in that Nation's reconstruction efforts and undermine the foreign
policy and commercial interests of the United States.

* The potential liability created by Section 1083 cannot be overstated
- it could reach multiple billions of dollars and subject the Development
Fund for Iraq and Iraq's central bank reserves, which are both essential to
building on security gains, to attachment and liens. The provision would tie
up Iraqi assets in litigation, and would have a potentially devastating
impact on the Government of Iraq with serious implications for U.S. troops
in the field, which count on Iraqi funds to expand and equip the Iraqi
Security Forces and provide an antidote to terrorists and insurgents. In
particular, Section 1083 would:

* Allow Iraqi assets to be frozen solely upon the filing of a claim,
up to the amount of plaintiffs' lawyers claim in a lawsuit and before any
court considers its merits.

* Expose both the assets of the Development Fund for Iraq and assets
of the Central Bank of Iraq to attachment, potentially tying up tens of
billions in core Iraqi assets while lawyers argue the merits of cases and
the reasonableness of these actions in court.

* Permit the freezing of assets in commercial entities in which Iraq
has an interest, potentially exposing partnerships between United States
businesses and Iraqi national enterprises to attachment. Iraq would likely
take its future business elsewhere.

* Overturn prior litigation victories for the new, democratically
elected Government of Iraq in lawsuits for Saddam-era acts and allow lawyers
to reopen and expand those cases.

* Authorize punitive damages against the new, democratically elected
Government of Iraq for Saddam-era conduct and eliminate Iraq's ability to
assert standard legal defenses normally available to defendants in United
States courts.

* Hold the democratically elected Government of Iraq, a friend and
ally of the United States, liable in U.S. Courts for the crimes and
atrocities of the Saddam Hussein regime.

* Once in place, the restrictions on Iraq's funds that could result
from the bill could take months to lift, and thus Section 1083 cannot become
law even for a short period of time.

* The Administration is working with Congress to fix the flawed
provision as soon as possible after Congress returns in January. While the
Administration objected to many provisions in the NDAA, and continues to
have concerns about the bill's effects on U.S. commercial ventures in other
countries, the President is vetoing the NDAA because of the threat that
Section 1083 poses to Iraq. With modifications that fix this provision, the
President would sign a new bill into law.

* The President will act quickly with Congress to ensure the full
military pay raise provided by the NDAA will go into effect as quickly as
possible. The NDAA includes authorization for a 0.5 percent additional pay
raise for U.S. troops, on top of the 3 percent increase that will go into
effect on January 1 without the NDAA. As soon as possible upon Congress'
return, the Administration will work with Congress to enact the NDAA
adjusted in a manner that protects Iraqi interests in the United States and
ensures that the additional pay raise for our troops is retroactive to
January 1.