Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON -- U.S. Senator Lindsey Graham (R-South Carolina) today said Congress should heed the warnings contained in the recently released U.S.-China Economic & Security Review Commission report and take action to curb Chinese currency manipulation abuses. Graham was joined at the Capitol Hill press conference by U.S. Senator George Voinovich (R-Ohio). Graham noted the Chinese yuan has been tightly pegged to the US dollar in a range of 8.28 yuan per dollar since 1994.  Given China's enormous growth over the past decade, if the yuan were allowed to float freely, like other major currencies, economists believe it would appreciate substantially against the U.S. dollar. The first recommendation to Congress made by the Commission was to address China’s currency manipulation. “The Commission report serves as a wake-up call to Congress,” said Graham. “We have lost thousands of manufacturing and textile jobs not because the Chinese work harder or smarter, but because they are cheating. Congress chose to empower the Commission to look into issues affecting U.S.-China relations, now the question is will we listen to them?” In its findings, the Commission reported:

• China is systematically intervening in the foreign exchange market to keep its currency undervalued.
• An immediate and significant upward reevaluation of the Chinese yuan against the dollar, combined with the removal of discriminatory Chinese trade practices, should help reduce the U.S. trade deficit with China which was $124 billion in 2003.
• China’s intervening to keep the yuan undervalued is in violation of the International Monetary Fund (IMF) which says members should, “avoid manipulating exchange rates…in order…to gain an unfair competitive advantage over other members.”
• China should implement reforms to prepare them for an eventual floating exchange rate. At this time, they should refrain from moving to a floating exchange rate as its banking system and financial markets are not prepared.

Economists estimate the yuan may be undervalued by 15 to 40 percent. The intentional manipulation makes their goods and services cheap internationally.  The practical effect of this manipulation means Chinese manufacturers receive a 15 percent to 40 percent discount on their exports, providing them with a nearly insurmountable advantage over American producers. “China’s cheating is hurting American manufacturers and textile producers,” said Graham. “American workers can compete with anyone given a fair opportunity. Unfortunately, that opportunity does not exist in today’s economy.” Graham said he will continue to push for action on legislation he offered with Senator Charles Schumer (D-NY) requiring China to abide by international trade agreements and stop manipulating their currency. The legislation:

• Initially gives China a window of 180 days to revalue their currency or be faced with a 27.5 percent tariff on all Chinese manufactured goods.
• Requires the President to certify China “is no longer acquiring foreign exchange reserves to prevent the appreciation of the rate of exchange between its currency and the United States dollar for the purpose of gaining an unfair competitive advantage…” The certification includes a determination that China has “undergone substantial upward revaluation placing it at or near its fair market value.”
• Provides that if China has made a good-faith effort to revalue, the President may delay the imposition of tariffs for an additional 180 days. If at the end of the additional 180 days, the President determines that China has developed a plan to revalue, he may delay the imposition of tariffs for an additional 12 months.

“The Schumer-Graham legislation gives China ample time to make the necessary, structural changes to the valuation of their currency,” said Graham. “If China wants to be part of the international community, it’s time for them to clean up their act. Until they are reigned in and start playing by the rules, our manufacturing industry will continue to bleed jobs because of unfair Chinese trade practices.” #####

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON – U.S. Senator Lindsey Graham’s (R-South Carolina) drive to help citizen-soldiers receive better health care benefits received a big boost this week. Twice the U.S. Senate voted to provide TRICARE, the military health care benefit, to members of the National Guard and Reserves regardless of their activation status. Today, the U.S. Senate passed 98-0 the defense appropriations bill funding reservists’ benefits, including a temporary expansion of the TRICARE program to members of the Guard and Reserve. On Wednesday, the Senate passed 97-0 its version of the defense authorization bill, including a Graham amendment making Guardsmen and Reservists eligible for the program. “I’m pleased the Senate agreed to the important change in the benefits package for members of the Guard and Reserve,” said Graham, a member of the Senate Armed Services Committee. “This is the first time the Senate has appropriated money to expand TRICARE to all members of the Guard and Reserve, regardless of their activation status. We’ve had overwhelming votes in support of giving our reservists better health care benefits. We’ve got more work to do before this becomes law, but this week was a very productive one in moving the bill forward.” “We’re calling upon the Guard and Reserve at the same tempo level we did during World War II,” said Graham. “On a percentage basis, it’s even greater. So now is the time to increase benefits for Guard and Reserve members.” Members of the guard and reserves would be eligible to enroll in TRICARE for a modest annual premium regardless of their deployment status. Premiums would be about $530/year for individual coverage and $1,860/year for families. When fully phased in the Congressional Budget Office (CBO) estimates the provision would assist more than 300,000 reservists and their family members. Graham said that in Iraq Guardsman and Reservists have rotated with the active-duty forces, increasing the reserve component share of the total U.S. forces to more than 40 percent. The reserves have also been charged with taking control of the entire peacekeeping mission in the Balkans. “Better health care benefits will help our recruiting, readiness and retention efforts,” said Graham. “They need it and I think based upon what they have been asked to do, particularly since 9/11, they’ve earned it. We’re going to continue to fight for better benefits for them.” “Guardsmen and Reservists are citizen-soldiers,” said Graham. “Increasingly they are being called up to duty, taken away from their work and families, and being sent to far-away lands for long tours of duty. We need to ensure the benefits they are receiving are equal to the sacrifice they are making to protect our country and interests around the world.” The Senate will now go to conference with the House of Representatives on both the Defense Authorization and Defense Appropriations bills. ####

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON- U.S. Senator Lindsey Graham (R-South Carolina) today made the following statement about the murder of Paul Johnson. “Every day it becomes clearer that we are fighting barbarians in the War on Terror. They must be defeated; it is impossible to negotiate our way out of this war.” “To win this war, we must empower the good people of the Middle East who seek a better life, and resist the temptation to act like our enemy.” “One day, the barbarians responsible for this murder and all other terrorists will be brought to justice. Anything short of total victory is unacceptable.” “Our thoughts and prayers are with the family of Paul Johnson, and all who have suffered so much. I hope God will provide a healing presence in their lives.” ####

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON -- U.S. Senator Lindsey Graham (R-South Carolina) today announced more than $280,000 in grants to fire departments in Gresham, Moncks Corner, and Walhalla. “Firefighters risk their lives to protect others, and they deserve the best equipment and training available,” said Graham. “Firefighters are some of the heroes in our midst.” The Assistance to Firefighters Grants will help the fire departments improve their training, wellness and fitness programs; purchase new firefighting equipment and personal protective equipment; and, make modifications to fire stations and facilities. Gresham Britton’s Neck/Gresham Volunteer Fire Department will receive $93,240. Moncks Corner Whitesville Rural Volunteer Fire Department will receive $36,999. Walhalla Walhalla Fire Department will receive $150,413. The Assistance to Firefighters grant program awards one-year grants directly to local fire departments, enhancing their ability to respond to fire and fire-related hazards in the community. The program supports departments by providing them the tools and resources necessary to protect the health and safety of the public and their firefighting personnel. Grantees share in the cost of the funded project at a percentage based on the population of their respective jurisdiction. Grantees that serve jurisdictions of 50,000 or fewer residents are required to provide a non-Federal cost-share of 10 percent while grantees that serve jurisdictions of over 50,000 provide a 30 percent cost-share. The match must be in cash without the use of in-kind contributions. In addition, the maximum amount of federal funds that an applicant can be awarded is $750,000 during any fiscal year. The grants are made by the U.S. Department of Homeland Security. ####