One of the most crucial public policy problems facing America today is the lack of progress in dealing with hazardous waste. At the root of this inaction is an overriding issue: How do we pay the immense cost of correcting the damage done by past waste handling practices?

At American International Group, we have given extensive thought to this question and have developed the outlines of what we believe can become an effective answer. The timing is right for such an initiative. In 1991, Congress must reconsider key environmental cleanup legislation, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund). The debate leading up to CERCLA reauthorization has already begun.