"The frozen assets in U.S. banks should be distributed to those who have sacrificed the most in the Desert Storm operation," Smith explained. "Clearly, the men and women who served our country should be given top priority."

As a result of the Gulf War, the United States froze all Iraqi assets sitting in U.S. banks. The assets totaled $1.3 billion in impounded funds. Since the United Nations determined that Iraq was responsible for losses and damages during the war, the money has been held awaiting action by Congress to determine how the money should be adjudicated. Businesses and approximately 3,000 Desert Storm veterans have filed claims against the frozen assets now owned by the United States, all claiming to have been adversely affected by the war. 

U.S. Senator Jesse Helms (R-North Carolina) rewrote language in the Senate Foreign Relations Authorization Act so that business interests, including at least seven tobacco companies, have priority in filing claims. The tobacco companies claim they sold cigarettes to Iraq that were not paid for.

Yesterday the House voted to instruct the House and Senate conferees, who will be reconciling the differences between the House and Senate versions of the Foreign Relations bill, to eliminate the Helms provision and ensure that veterans have the first shot at receiving the frozen funds.

Smith voted for and strongly supports the instructions. "It's important that we send a message to the Senate and tell them we disagree with the priorities Senator Helms has outlined," he said. "I am hopeful that the conferees listen to the public and eliminate this provision."