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improve performance. The President's 1999 budget proposes a $100 million increase in appropriations for solar and renewable energy R&D - a 37 percent increase over 1998.

We hope that the Congress will view the President's initiative favorably and appropriate the funds and enact the tax incentives that he has requested. We look forward to working with you to put the President's proposals into action.

The President and his Administration are committed to working with you in the Congress, both to realize the potential of the Climate Change Technology Initiative and to craft the ongoing U.S. approach to climate change. The United States has the power to lead the global effort, and Congress holds the key. What is done or not done today will determine the kind of world we will leave to future generations and the conditions of life they will face.

Sustained Effort Required

Mr. Chairman, I have mentioned that Kyoto produced a framework for future action, and I have listed a number of the steps that await us.

Coming to grips with the threat of global warming is no small task. We must tackle it in a vigorous, sober and determined manner, understanding that it represents a challenge but also an opportunity. And as we have always done in the face of global challenge, we must assume the responsibilities of American leadership.

Thank you.

STUART E. EIZENSTAT

Under Secretary of State for Economic, Business and
Agricultural Affairs

Following U.S. Senate confirmation on May 22, 1997, on June 6, 1997, Stuart E. Eizenstat was sworn in as Under Secretary of State for Economic, Business and Agricultural Affairs. The Under Secretary serves as the senior economic official at the Department of State. He advises the Secretary on international economic policy and leads the work of the Department on issues ranging from trade and aviation negotiations to bilateral relations with major partners such as Japan and the European Union. Ambassador Eizenstat retains his title and responsibilities as Special Envoy for Property Claims in Central and Eastern Europe. He likewise is a leader within the Administration in promoting democracy and human rights in Cuba.

From April 5, 1996, to June 6, 1997, Ambassador Eizenstat was Under Secretary of Commerce for International Trade. At Commerce, Under Secretary Eizenstat led the International Trade Administration, which has responsibility for promoting U.S. exports, assisting American business efforts abroad, enforcing laws against unfair foreign trade practices, and developing trade policy. He established the new Compliance Center while there, which for the first time gives the U.S. government the capacity to monitor foreign government compliance with the trade agreements they have reached with the U.S., giving us a greater assurance we are obtaining for U.S. business and workers the full benefits of the trade agreements we negotiate.

He served as U.S. Ambassador to the European Union in Brussels, Belgium, from September 1993 until April 1996. He was one of the initiators of the New Transatlantic Agenda, signed by President Clinton and European leaders in 1995, to

develop closer ties between the U.S. and the European Union in the post-Cold War era, and helped develop the highly successful Transatlantic Business Dialogue, which brings together European and American business leaders to provide advice on removing impediments to transatlantic trade and investment.

In 1996, at the conclusion of his service to the European Union, Ambassador Eizenstat received from Secretary of State Warren Christopher the highest award which can be given to a non-career Ambassador, the Foreign Affairs Award for Public Service.

At the time of his nomination, he was Partner and Vice Chairman of the law firm and Chairman of the Washington office of Powell, Goldstein, Frazer & Murphy, where he had been since 1981. He concurrently served as Adjunct Lecturer at the John F. Kennedy School of Government at Harvard University, Cambridge, Massachusetts, from 1981 to 1992, teaching a course on presidential decision making, and had also been a Guest Scholar at the Brookings Institution in Washington, D.C.

From 1977 to 1981, Mr. Eizenstat served as President Carter's chief domestic policy adviser in the White House, with the position of Assistant to the President for Domestic Affairs and Policy and Executive Director of the Domestic Policy Staff. In 1976, he had joined the Carter presidential campaign full-time as Director of Issues and Policy; after the election, he became the Carter-Mondale Transition Planning Group's Director for Policy, Planning and Analysis.

His distinguished career in government began during his university years when he spent three summers (1963, 1964, and 1966) working as an intern for both the legislative and the executive branches of the Federal Government. In 19671968, he served as a staff aide in the Johnson White House and in 1968 as Research Director for Vice President Hubert Humphrey's presidential campaign.

From 1968 to 1970, Mr. Eizenstat worked in Atlanta as law clerk to U.S. District Court Judge Newell Edenfield, Northern District of Georgia. Since he also had been an intern in the U.S. Congress in the summer of 1963, he has worked in all three branches of the U.S. Government-legislative, judicial, and executive.

From 1970 to 1976, he was an attorney and partner of the

From 1981 to 1993 he was the head of the firm's Washington office and Vice Chairman of the entire firm.

Ambassador Eizenstat has written extensively in leading newspapers in the U.S. and abroad, magazines, and legal, economic, and political publications, and co-edited a book, The American Agenda, a bipartisan project he co-directed to provide advice to the President-elect in 1988.

At the time of his nomination as Ambassador, Eizenstat had served on the boards of such non-profit organizations as the Weizmann Institute of Science, The Jerusalem Foundation, Brandeis University, Council on Foreign Relations, Council for Excellence in Government, Center for National Policy, the Overseas Development Council, International Management and Development Institute (Jerusalem), American Jewish Committee, and the UJA Federation of Greater Washington, and was chairman of the Feinberg Graduate School of the Weizmann Institute. He had been President of the Greater Washington Jewish Community Center from 1989 to 1991. He also was on the Board of Directors of Hercules Incorporated, PSI Energy, Inc., and the Israel Discount Bank of New York.

Stuart Eizenstat was born in Chicago, Illinois, in 1943 and was raised in Atlanta. He was all-City and Honorable Mention All-American in basketball at Henry Grady High School in Atlanta. He is an honors graduate in political science (Phi Beta Kappa in his junior year) of the University of North Carolina at Chapel Hill and received his law degree from Harvard University in 1967.

His biography appears in Who's Who in America, Who's Who in American Lawyers, Who's Who in American Jewry, Who's Who in World Jewry, Who's Who Among Intellectuals, Who's Who in American Politics, and Who's Who in the World. He has received numerous awards throughout his years in public service, including the Moral Statesman Award of the AntiDefamation League in 1997; the Export Enhancement Award, U.S. Coalition for Employment Through Exports, 1993; Israel Bond Award, 1992; Jewish Leadership Award, the Academy of Jewish Religion, 1989; Man of the Year Award from the National Capital Association of B'nai B'rith Lodges, 1982; U.S. Department of Labor Award for Special Contributions to Youth Employment, 1980; Award from the Washington International Business Council, 1978; and Young Man of the Year Award for Leadership, American Association for Jewish Education, 1973-74.

Ambassador Eizenstat is married to Frances Carol Eizenstat

Chairman SENSENBRENNER. Thank you very much, Mr. Eizenstat, for your very thorough testimony. We will be operating under the 5-minute rule, and if a second round of questions is necessary and time permits, then that will be the case.

CHANGES IN THE KYOTO PROTOCOL NECESSARY SO THE

PRESIDENT CAN SIGN AND THE SENATE CAN RATIFY

Chairman SENSENBRENNER. Mr. Eizenstat, I think that it has been quite plain since Kyoto that the Administration considers this whole issue a work in progress. What changes in the Kyoto Protocol are necessary, number one, in order for the President to sign this Protocol, and, number two, in order for, in your opinion, the Senate to achieve the 3 vote to ratify it?

Mr. EIZENSTAT. It is our anticipation and expectation that we will be signing the Protocol sometime between the middle of March of this year and next year. At the same time, we know that we have the following to do, Mr. Chairman: first, we have got to make sure that the rules and procedures for trading allow inhibited market mechanisms to work. We can't have artificial constraints on that trading. That trading is essential to our capacity to meet the goals in a cost effective way. Second, we have to launch and we are launching a major diplomatic initiative to obtain the participation of developing countries. We know that the Protocol cannot be ratified nor indeed will we even submit it for ratification until we have that meaningful participation. This will take months; it may take much longer.

Chairman SENSENBRENNER. Those are the two points?

Mr. EIZENSTAT. Those are the major points. There are many other features. For example, we'll be working on the rules for the clean development mechanism. There are a whole host of other items that we'll-we'll, obviously, be trying to pass the President's own initiative on technology to jump start this. We'll be trying to develop partnerships with developing countries, but the two major features I would say are developing good rules for unimpeded trading, both international trading and the clean development mechanism, and trying to enlist the participation of developing countries. WHEN IS THE ADMINISTRATION WILLING TO WALK AWAY FROM THE PROTOCOL AND DECLARE IT FATALLY FLAWED?

Chairman SENSENBRENNER. If the Administration is not successful in both of these areas, is the Administration willing to walk away from this process and declare it fatally flawed?

Mr. EIZENSTAT. Well, we believe that we will be successful, but

Chairman SENSENBRENNER. Well, I'm saying if you're not successful, are you willing to walk away from it and declare it fatally flawed?

Mr. EIZENSTAT. Mr. Chairman, with all deference, I'd prefer not to speculate on something hypothetical I don't believe will occur. We know that we have to get good emissions trading, and as I've indicated in my testimony, without it, we can't achieve the objectives that we're seeking. And, clearly, without meaningful partici