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THE COUNCIL OF THE CITY OF NEW YORK CITY HALL NEW YORK, N. Y. 10007 NOACH DEAR COUNCILMAN. 3 2 N D DISTRICT, BROOKLYN 1 3 7 3 C O N E Y I S L A N D A V E N U E B R O O K L Y N , N. Y . 1 1 2 3 0 3 3 8 * 1 1 LO COMMITTEES: CONSUMER AFFAIRS FINANCE PUBLIC SAFETY STATE LEGISLATION September 25, 1986 Senator Chic Hecht United States Senate Washington, D.C. 20510 I am writing to thank you for the opportunity of meeting with you last week at the Sterring Committee session. I am confident that you share my view that it was mutually productive. I believe very strongly that there is a substantial congruity between the views expressed by members of the Committee and those of a significant percentage of my electoral constituency and the community I represent -- certainly more than has heretofore been thought to exist. I am hopeful that our dialogue continues and I am prepared to work to broaden it to include others in my^bommunity. With warmest regards, Noach Dear P.S. I am also enclosing some recent articles on the hearing I held regarding Soviet Disinvestment. ND/hc S E R V I N G : B E N S O N H U R S T . B O R O PARK. KENSINGTON. M A R I N E PARK. MIDWOOD A N D E A S T MIDWOOD WEEK OF SEPTEMBER 26 TO OCTOBER 2, 1986 22 ELUL 5746 City Council Focuses On Russia's Human Rights Violations The New York City Sub-committee on Human Rights, chaired by Councilman Noach Dear, opened its hearings this week and focused on human rights viola-tions in the Soviet Union. The sub-committee heard dramatic testimony from Anatoly Shcharansky via telephone hookup from London, in which he declared that the scale of human rights violations tcommitted! by the Soviet Union is infinitely geater than that of South Africa. Shcharansky echoed Councilman Dear's puzzlement as to why those politicians and other pub-lic figures who strongly advocated sanctions againt South Africa, even risking arrest, have been silent with respect to the Soviet Union Shcharansky questi-oned their sincerity as true advocates of human rights. Also testifying was world famous pianist David Bar Ilan who labeled the current program of cultural exchanges with the Soviet Union as a "sham," noting that there were severe restsrictions on the participa-tion of Jews. A champion class chess player, Leonid Feldman, testified that he was excluded from world competition because he was Jewish. Glenn Richter, of the Student Struggle for Soviet Jewry, and Catherine Cosman, of the Helsinki Commission, provided exten-sive documentation of official Soviet persecution of those wishing to emigrate to Israel and other coun-tries. Dr. Yuri Yarem Agave, of the Center for Demo-cracy, Jakub Birnbaum, of the Center for Russian and East European Jewry, and Yaakov Goredetsky, former leader of the Leningrad Jewish Resistance Movement, joined these and other witnesses in unders-coring the need for using economic leverage against the Soviet Union and supported Councilman Dear's proposed legislation introduced in May of this year, called the "Soviet Disinvestment Law." That legisla-tion would substantially restrict agencies of New York City from depositing money in banks which extend credit and loans and otherwise assist the Soviet Union. The bill would also restrict city agencies from con-tracting with companies that do business with the Soviet Union. THE NEW YORK TIMES, TUESDAY, SEPTEMBER 23, 1986 r ? * ? [ Shcharansky Endorses Council Bill on Soviet -; . ' J ?<?' ? >. ? ? Anatoly B. Shcharansky, speaking by telephone from London With a New York City Council subcommittee, yes-terday endorsed a bill that would bar municipal contracts with companies that sell goods directly to certain agen-cies of the Soviet Government and city deposits in banks that lend money to the Soviet Union. Contending that the Soviet Union Vio-lated the human rights of Jews and other minorities, he said told the sub-committee on Human Rights that dis-investment "is quite legitimate, logical and moral." , Mr. Shcharansky was convicted of espionage in the Soviet Union in 1978 while active in the emigration move- ? ment. He was released last February in an East-West exchange of intelli-gence agents and now lives in Israel. The bill he endorsed was introduced in May by Councilman Noach Deaf, a Brooklyn Democrat who is chairman of the subcommittee. The bill, lit part* would prohibit the city from contract-ing for goods or services with compa-nies that do business with the Soviet po-lice, military or prison system and would bar the city from buying goods made in the Soviet Union. Mr. Dear acknowledged that it would "take some time" before he had enough support to get the bill approved. < NEW YORK POST, MONDAY, SEPTEMBER 22, 1986 Crazy ways we give help to our enemies THE Communist government of East Germany went shop-ping among Western banks last year for a $100-milllon loan. A consortium of three Ameri-can banks and the Bank of Tokyo was happy to oblige. Heck, they told the East Ger-mans, why mess with a paltry $100 million. Here, take $500 million. The East Germans accepted ? and promptly showed their gratitude by sending $20 mil-lion to the Sandlnlsta govern-ment in Nicaragua. If you think this transaction Is economic lunacy, stick around. It's Just the top of the vault. Nine months ago, the First National Bank of Chicago led another consortium to extend a $200-mllllon line of credit to the Soviet Union at less than 8.5 percent Interest. If you can find any American bank that will lend you or me money at less than 8.5 percent, please call me. Why do American banks lend money to the Soviet Union at lower rates than to their own citizens? Don't ask me. All told, American banks last year lent the Soviets $2.5 billion. This year, we were especially generous in agreeing to subsi-dize Soviet grain purchases. As a token of their esteem and gratitude, the Soviets seized American Journalist Nicholas Danlloff In Moscow as a hos-tage, with plans to put him on trial as a spy. While American contributions to Soviet solvency last year were worth noting. West European and Asian banks were positively generous In their loans. They coughed up $40 billion. The Soviets, as we all know In our hearts, have the worst record of human rights viola-tions in the world. It's a gulag from one end of Its borders to the other. Comparing one evil system with another is not too reward-ing, but in sheer numbers, years, victims and human suf-fering the Soviet toll dwarfs that extracted by the dread apartheid In South Africa. Why then is the world Inflamed against South Africa, seeking Its economic collapse, but so silent and accommodating with the Soviets? Don't ask me. If you really want to go bonk-ers, consider this Catch 22. As international currency, the Soviet ruble is not worth a pinch of Siberian snow. To miptaln Its global empire and finance Its adventurism In places such as Vietnam, Cuba, Angola, Nicaragua etc, the Soviet Union requires hard currency. It gets Its dollars, yen, marks and francs from the West In | loans, credits, energy and arms sales. It also picks up about $5 bil-lion a year through its network of subsidiary banks In the West through what Is known as the Interbank system. It's estimated the Soviets can r a y KERR ISON tap $10 billion in this market. So the American taxpayer helps finance Soviet Interven-tion round the globe, then the same American taxpayer must pay again to build a military establishment to defend him-self at home from the Soviets he Is helping. None of this makes much sense. That's one reason why Noach Dear, the city councilman from Brooklyn, will open hearings In City Hall today to probe the Iptoo. As chairman of a subcommit-tee on human rights, Dear will explore the Soviet record, call witnesses on our financial ar-rangement with the Soviets and finally call for a divestment program similar to the city's strike against South Africa. Dear's lead-off witness will be Natan Shcharansky, the Jewish dissident released by the Sovi-ets this year, whose testimony will be piped in live from Lon-don, where he is visiting. In a letter, Shcharansky said: "Moves to put pressure on the Soviet authorities have the same moral validity as pres-sure on the South African gov-ernment to end apartheid. "I have absolutely no sympa-thy for apartheid . . . but I can assure that the scale of human rights violations In the Soviet Union Is as great as in South Africa. "For this reason, anyone who opposes, as I do, the practice of apartheid In South Africa Is morally bound to oppose, with equal vigor, human rights violations In the Soviet Union." Who has said it better? The Reagan administration has long opposed any restric-tion on private American bank loans to the Soviets. It claims that such restric-tions would be ineffective be-cause others would fill the gap and, In any case, the U.S. be-lieves In a free capital market. Financing an enemy dedi-cated to burying you does not seem a wise strategy. The Irony Is that as President Reagan this day goes to the UN General Assembly and socks it to the Soviets for their univer-sal treachery we will continue to lend them money to continue the treachery. What Dear's committee has to say In City Hall might make more sense. Natan & Avilal Sharansky J e r u s a l e m Israel Councilman Nnarh Pear 1373 COney Island Avenue Brooklyn New York 11230 USA 18th June 1986 Thank you for your letter of 12th May and for the material concerning the proposed legislation on disinvestment in the Soviet Union by New York City Council. 1 understand that the City Council recently passed similar " ??legislation on'disinvestment in South Africa. ? - ? I have no doubt that such moves to put pressure on the Soviet authorities have the same moral validity as pressure on the South African Government to end apartheid. I have absolutely no sympathy for apartheid and I feel very strongly that all peaceful efforts should be 'amde to solve this problem and bring democracy to South Africa. At the same time I can assure you that the scale of human rights violations in the Soviet Union is at least as great as it is in South Africa. For this reason, anyone who opposes, as I do, the practice of apartheid in South Africa is morally bound to oppose, with equal vigour, human rights violations in the Soviet Union. There are some similarities between the injustices suffered under aprtheid and those endured by Soviet citizens. The South African Pass Law is mirrored in the Soviet Union where a seal in one's identity papers defines the area where one is allowed to live or even travel. These restrictions on freedom of movement reach their culmination in the refusal of the Soviet authorities to allow the basic human right of emigration. In this respect, the problems of Soviet Jewry are particularly dramatic. There are also severe restrictions on the media in the Soviet Union, where no independent opinions may officially be published and all forms of public communication are closely controlled by the Government. Dissent is forbidden and even the slightest criticism of the authorities can result in long prison sentences. The Soviet Government is strident in its criticism of South Africa, but such criticism only reveals the depth of Soviet hypocrisy on human rights. For example, Soviet propaganda is fond of quoting statistics which show that South Africa has the highest proportion of prisoners per 1,000 population of any country in the world. In fact, the proportion of prisoners in the Soviet Union is between 5 and 10 times that of South Africa. Furthermore, while there are many people who have been imprisoned in South Africa for their active opposition to apartheid, the situation in the USSR is worse. In the Soviet Union, people are imprisoned for merely expressing their views even when those views do not encourage violence or any kind of illegal activity. It is true to say that there remains some semblance of democracy in South Africa at least among the white minority, where opposition groups are able to operate within a limited parliamentary system and where there exists at least a measure f Npach Dear, 18th June, page 2 of independent journalism. Before the current Emergencythere were frequent large-scale demonstrations and strikes by black South Africans protesting against apartheid. In the Soviet Union there is not even this limited democracy, no parliament, no freedom of speech or assembly and all opposition voices are ruthlessly suppressed. Large demonstrations as have commonly been held in South Africa and reported in the press there are completely banned in the USSR as is any media reporting of them. While I abhor apartheid, I can assure you that human rights are abused more under Soviet totalitarianism than they are even in South Africa. Whereas the scourge of apartheid oppresses only a section, albeit the majority, of the people, Soviet human rights violations affect the political, cultural, religious and national activities of every member of the population. I feel that these facts should be brought before a wider public, particularly those concerned about human rights in various parts of the world. Your disinvestment proposal would put strong pressure on the Soviet authorities while allowing the truth to be heard about conditions inside the USSR. This disinvestment legislation should be closely linked with the question of emigration. The freedom to live in the country of one's choice is a basic human right enshrined in various international agreements. Although the Soviet Union has signed such agreements, today there are 400,000 Jews who wish to leave the Soviet Union and are denied that right. Their reasons for wanting to emigrate are clear: the officially-sanctioned suppression of Jewish culture and the Government-approved manifestations of open antisemitism. By linking the issue of disinvestment directly to emigration, the City of New York has the opportunity to help release 400,000 Jews who wish to practise their culture and religion in freedom in the country of their choice. I would also recommend that in the process of discussing this proposal a committee be established by the New York City Council to study the impact of such legislation on the Soviet Union and its economy. This committee, through public hearings and the study of relevant material, would be able to determine whether the Soviet economy would be affected by such a move and through its public hearings would be able to discuss the best possible methods of putting pressure on the Soviet authorities. I have consulted two of the leading human rights lawyers in North America on this matter, Professor Alan Dershowitz and Professor Irwin Cotler, and they both agree with the ideas expressed in this letter. With very best wishes, Yours sincerely, / / l O : ^ V' . .-1 -' f?a x Natan Sharansky I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 THE COUNCIL The City of New York Int. No. 603 May 22, 1986 Introduced by Council Member Dear; also Council Members DeMarco, F.island. Michcls, O'Donovan, Alter. Dryfoos, McCaffrey. Messinger and Williams?read and referred to the Committee on International Intergroup Relations And Special Events. A LOCAL LAW To a m e n d the c h a r t e r of the city of New York in relation to the d e p o s i t i n g of city funds in hanks that have dealings with the government of the Union of Soviet Socialist Republics, and to amend the administrative code of the city of New York in relation to the purchase by the city of goods originating in the Union of Soviet Socialist Republics and city contracts with companies that export goods to the Union of Soviet Socialist Republics, and companies that make direct sales to c e r t a i n agencies of the Soviet government. Be it enacted by the Council its follows: Section one. Declaration of Legislative intent and findings. The Union of Soviet Socialist Republics (henceforth referred to as the Soviet Union) policy of denying its citizens, especially its Jewish minority, the right to practice their individual religions without fear of arrest and harsh imprisonment is morally repugnant to the people of the city of New York. In addition, the Soviet Union's brutal occupation of Afghanistan, and its crackdown on any attempt by its East European Satellites to grant even minor human rights concessions to its people, is another example of this outlaw government's cruel and dehumanizing rule. The city of New York has a long tradition of regulating the use of public moneys to ensure that purchases, deposits and investments are made consistently with moral standards and in a manner which promotes the public welfare. For example, as early as nineteen hundred forty-two the council enacted a local law prohibiting discrimination on the basis of race, color or religion by city contrac-tors. The council has also required that city contractors agree not to violate provisions of the export administration act prohibiting participation in foreign-sponsored boycotts of nations friendly to the United States. The council recently enacted Legislation providing for a "locally based enterprise" program to increase opportunities for disadvantaged persons to be employed in city construction contracts. The charter provides that city funds may be deposited only at banks which have a policy of hiring and promoting employees without regard to race, color, creed, religious affiliation, sex or Note: Matter in italics is new; matter in brackets ( ] to be omitted. I 2 3 4 5 ft 7 8 9 10 I I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 2 national origin. The council also rcccntly cnaclcd Legislation, similar to what is proposed in this bill, concerning the Government of South Africa. This local law provides that the banking commission shall not designate a bank or trust company as eligible to receive city deposits if, alter the effective date of this law, the bank or trust company provides certain services that benefit the Soviet government. A bank or trust company may not be so designated if it underwrites securities for or makes a loan to the government of the Soviet Union. An exception is made for loans for educational, housing or health facilities, but only where these are available to all persons on a totally nondiscriminatory basis. A further exception is made to allow for the designation of a bank if such designation is necessary to allow the city to obtain essential services which arc not reasonably obtainable from another bank. This local law also applies to certain city contracts for goods and services. Recognizing the needs of city agencies to contract economically and in accordance with applicable competitive bidding requirements, this law provides for a determination to be made whether it is in the public interest to contract with persons who do not agree to certain conditions concerning their activities in the Soviet Union if the city can obtain goods or services of comparable price and quality from a person who docs agree to those conditions. This determination would occur when a person seeking a contract would sell the city goods originating in the Soviet Union, or sells goods or services other than food or medical supplies directly to the Soviet police, military or prisons. These provisions not only express the moral concerns of the city of New York, but also seek to protect the financial interests of the city by limiting the number of city contracts which may depend for their satisfaction on the internal security of the Soviet Union. Like the provisions concerning deposits, these provisions operate prospectively, and contracting decisions shall not be based on a contractor's dealings with the Soviet government prior to the effective date of this law. ?2. Section fifteen hundred twenty-four of the New York city charter is hereby amended to read as follows: 81524. Deposit banks. I. The banking commission which consists of the mayor, the commis-sioner and the comptroller shall, by majority vote, by written notice to the commissioner, designate the banks or trust companies in which all moneys of the city shall be deposited, and may by like notice in writing from time to time change the banks and trust companies thus designated. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3 2. a. Except as provided in paragraph b of this subdivision, no bank or trust company shall be designated pursuant to this section unless: (1) it shall agree to pay into the city treasury interest on the daily balances at a rate which the banking commission shall, by a majority vote, fix quarterly on the first day of February, May, August, and November in each year, according to the current rate of interest upon like balances deposited in banks and trust companies in the city by private persons or corporations: (2) it shall file with the banking commission and city clerk a certificate signed by the president or other duly authorized officer of such bank setting forth that its board of directors has established and will adhere to a policy of hiring and promotion of employees and officers without regard to race, color, creed, religious affiliation, sex or national origin which certificate shall further set forth affirmatively the steps taken by the bank or trust company to implement said policy; [and) (3) it does not provide the following services, either directly or through a subsidiary or agent, to the government of the Republic of South Africa; (a) advertising or otherwise promoting the sale, outside of the Republic of South Africa or Namibia, of krugerrands or other coins minted in the Republic of South Africa or Namibia, (b) underwriting securities of the government of the Republic of South Africa, or (c) making loans to such government, other than loans for educational, housing or health facilities available to all persons on a totally nondiscriminatory basis and located in geographic areas accessible to all population groups without any legal or administrative restrictions!.]; ""d (4) it does not provide the following services, either directly or through a subsidiary or agent to the government of the Soviet Union: (a) underwriting securities of the government of the Soviet Union, or (b) making loans to such government, other than loans for educational, housing or health facilities available to all persons on a totally nondiscriminatory basis and located in geographic areas accessible to all population groups without any legal or administrative restrictions. (b) The commission may designate a bank or trust company which does not meet the criteria set forth in clause three or four of paragraph a of this subdivision upon a determination, made in writing and forwarded to the council, that deposit of city moneys in such bank or trust company is necessary to obtain essential services which are not reasonably obtainable from another bank or trust company. If the banking commission by majority vote shall decide that such policy not to discriminate or provide services to the governments of the Republic of South Africa or the Soviet Union has been 4 r- 1 violated after giving the bank or trust company an opportunity to be heard, then upon giving thirty 2 days' notice to the bank or trust company such designation may be revoked. 3 3. The commissioner may, with the approval of the comptroller, make time deposits of city 4 moneys, for a period not to exceed six months, in any bank or trust company designated for deposit 5 of city funds. Each such bank or trust company shall before deposits are made, other than such as are 6 of a temporary character and specifically relate to the current business of the city, execute and file 7 with the commissioner a bond to the city in such form and in such amount as may be prescribed and 8 approved by the commissioner and the comptroller for the safekeeping and prompt payment of city 9 moneys or demand with interest at the rate agreed upon and, as security for such funds, shall deposit 10 with the comptroller outstanding unmatured obligations issued by the city, the value of which at the I I existing prices on the open market shall be equal to the estimate amount of the proposed deposit, for 12 which the comptroller shall deliver a certificate of deposit containing the condition of such bond. 13 4. On the withdrawal of all or a part of the funds deposited in any depository and a closing or 14 depleting of the account thereof, or in the event of the deposit actually made being less than the 15 estimated amount of such deposit, the commissioner and the comptroller shall certify to such ^ ^ 16 settlement or depletion or difference and direct the surrender of the whole or a proportionate share of 17 the securities so deposited to the owner or owners thereof. 18 ?3. Subdivision a of section 343-11.0 of title A of Chapter thirteen of the administrative code is 19 hereby amended to read as follows: 20 ?343-11.0. Anti-apartheid and Anti-Soviet Union contract provisions, -a. With respect 21 to contracts described in subdivisions b and c of this section, and in accordance with such provisions, 22 no city agency shall contract for the supply of goods or services with any person who does not agree 23 to stipulate to the following as material conditions of the contract if there is another person who will 24 contract to supply goods or services of comparable quality at a comparable price. 25 (I) that the contractor and its substantially owned subsidiaries have not within the twelve months 26 prior to the award of such contract sold or agreed to sell, and shall not during the term of such 27 contract sell or agree to sell, goods or services other than food or medical supplies directly to the 28 following agencies of the South African or Soviet Union government or directly to a corporation o 5 1 owned or controlled by such government and established expressly for the purpose of procuring such 2 goods and services for such specific agencies: 3 (a) the police, 4 (b) the military, 5 (c) the prison system, or in the case of South Africa, 6 (d) the department of cooperation and development; and 7 (2) in the case of a contract to supply goods, that none of the goods to be supplied to the city 8 originated in the Republic of South Africa or Namibia, or in the Soviet Union. 9 ?4. No bank shall be denied designation pursuant to section two of this local law because of any 10 action taken prior to the effective date of this local law. 11 ?5. The provisions of section 343-11.0 of the administrative code as amended by this local law 12 shall not apply to actions taken or contracted to be taken by any person prior to the effective date of 13 this local law. 14 ?6. Nothing in this local law shall be deemed to restrict or diminish the powers conferred on the 15 board of estimate by law. 16 ?7. If any provision of this local law or the application thereof is held invalid, the remainder of 17 this local law and the application thereof to other persons or circumstances shall not be affected by 18 such holding and shall remain in full force and effect. 19 ?8. This local law shall take effect one hundred twenty days from the date it shall have become 20 law, but all actions necessary to prepare for the implementation of this local law may be taken prior 21 to its effective date.