1999 Ron Paul 87:1 Mr. PAUL.
Mr. Chairman, I yield myself such time as I may consume.
1999 Ron Paul 87:2 Mr. Chairman, I would like to point
out that it is truly a subsidy to a foreign corporation, a foreign government.
For Red China, corporations and
governments are essentially identical.
They are not really quite in the free
market yet.
1999 Ron Paul 87:3 But the gentleman from Alabama
(Mr. CALLAHAN) points out that, no,
that is not true. The money does not go
to Red China and they buy things; we
just give it directly. We do not even
send it round trip. This is true.
1999 Ron Paul 87:4 We take taxpayers’ money. We take
taxpayers’ guarantee. We give them to
those huge five corporations that do 67
percent of the business. We give them
the money. But where do the goods go?
Do the goods go to the American taxpayers?
No. They get all of the liabilities.
The subsidies help the Chinese.
1999 Ron Paul 87:5 So, technically, yes, we do not send
the money there. But who is going to
pay it back? The Chinese pays the loan
back. If they default, who pays the bill
if the Chinese defaults? Who pays the
bill if they default? It is obviously the
taxpayers.
1999 Ron Paul 87:6 What I am pointing out is that $5.9
billion that the Chinese now had borrowed
from us, from the Export-Import
Bank, is a significant obligation that,
too, is on the backs of the American
taxpayer.
1999 Ron Paul 87:7 So I urge support for the amendment
because, if we are serious about free
trade, just please do not call it free
trade anymore. Call it managed trade.
Call it subsidized trade. Call it special
interest trade. But please do not call it
free trade anymore, because it is not
free trade.
