It was said in regard to an amendment to a bill which was being put forward by the 9/11 commission which was proposing "out-sourcing" the torture of accused terrorists who were citizens of the US. If passed, the amendment would have provided that the accused be shipped to another country to have their punishment administered. Some on the commission refused to sign the amendment, and an advocate of that amendment is rumored to have said to one of those who refused to condone the amendment, "Sign ze papers, old man!"
This comes from a Cheech & Chong bit that was on their first album where they are flipping through TV channels and they come across this fictional movie and watch it for a minute or two. It sounds like an old male prisoner is being interrogated by a German soldier: It goes back and forth with "Sign ze papers" - "I cannot sign the papers" then the old guy says "And what do the papers say?" and the interrogator says "they are merely a statement saying you have not been mistreated..." Then the interrogator burns the prisoner with a cigarette and Chong says "Oh wow man, he stuck it in his eye..." etc., etc.
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