HR 2494 CDS
101st CONGRESS
1st Session
H. R. 2494
IN THE SENATE OF THE UNITED STATES
October 27 (legislative day, SEPTEMBER 18), 1989
Received
October 31 (legislative day, SEPTEMBER 18), 1989
Read twice and referred to the Committee on Foreign Relations
November 22 (legislative day, NOVEMBER 6), 1989
Committee discharged
AN ACT
To reauthorize the Export-Import Bank tied aid credit fund and pilot
interest subsidy program, to provide for the participation of the United
States in a replenishment of the Inter-American Development Bank and in the
Enhanced Structural Adjustment Facility of the International Monetary Fund,
to improve the safety and soundness of the United States banking system and
encourage the reduction of the debt burdens of the highly indebted countries,
to encourage the multilateral development banks to engage in environmentally
sustainable lending practices and give greater priority to poverty alleviation,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

2c87033b8c6c722bca7558ced754fa706b8b22ba93347adc02f7ff97e5c0634d

(a) SHORT TITLE- This Act may be cited as the `International Development
and Finance Act of 1989'.
(b) TABLE OF CONTENTS-

7b3f566783e24f4841dc7e1be0e93aadf3ee0225af1949c25eeaa0c0f4d2be5b

prohibited unless certain conditions are met.

1a4cc028b9029247011433f6137531fbdda5e5d4617999a12deef80e0a0507ea

TITLE I

-EXPORT-IMPORT BANK ACT AMENDMENTS

Inter-American Development Bank; increase in resources of fund for special
operations.

b61e6d716f5e66b5cf5ff16b6a7bf8ffbaa2ca81fda7677e0b3730094de30692

TITLE II

-INTER-AMERICAN DEVELOPMENT BANK

should reduce dependence on illicit narcotics.

4e0a12bd77002509c740ea1db79ba5b4131640756fb0c0018337618e83fa1ed1

0080f52250e6e80613a7f1418a30c2d993c985c13fc06eea1593320aaf29b58a

Structural Adjustment Facility of the International Monetary Fund.

5f128d6c2de87f6984d95a29645311ebad646fc9ff9c1d81078c7fd8c5f67ad1

TITLE III

-INTERNATIONAL MONETARY FUND ENHANCED STRUCTURAL ADJUSTMENT FACILITY

Fund to alleviate the potentially adverse impacts of Fund programs on the
poor and the environment.

9fb11c9ac4a908b8b2466e20cbc488c52d459a934c5fcea6537defb7ce340584

policy toward debt reduction for certain highly indebted countries; report
to the Congress.

78c5365dc0dabc879c4c17f87a2eac50f5b9d8618d85933cd72797796a8f84e4

TITLE IV

-INTERNATIONAL DEBT PROVISIONS

937262f572931525baf8ebc399e94d1f555185d9e2601aa4f37cb005f35240db

report to Congress.
SWAPS; CONSOLIDATION OF REPORTING REQUIREMENTS
Subtitle A--Alleviation of Poverty

d594eb7b8191b20bd4026bc624147819bbde46a3760871a9f978ebb53955f040

366106c5cdc353ea53c89bc317c08160b2f1f4375545f69561d052c5dd60eec6

TITLE V

-ALLEVIATION OF POVERTY; ENVIRONMENTAL PROVISIONS; DEBT-FOR-DEVELOPMENT

Subtitle C--Environmental Impact Assessments

e9dc0f3c30e14e5f7e7d7691ec4b9a556da279b6a02535f4e256ed168adc26aa

development bank actions.
Subtitle D--Debt-for-Development Swaps

54776a32716357aab00edc067533b4933df65ec9a862b66daae4e7f73ba4510d

repayment.
Subtitle E--Consolidation of Certain Reporting Requirements

635fdcfccd90e8dfa78daba7b35e70d3d6a19238588ea605a60c9883934d8c0f

and Development and the International Monetary Fund should expeditiously
act upon loan requests from Poland.

86c4d071a4dada2fb0f24adbb3d6f18e508f5b8201628d7bd51b7980327a06d4

TITLE VI

-MISCELLANEOUS PROVISIONS

institutions to establish financial institutions in Poland.

244c2853d25810cb34ed52209bcd730d15a06ba93c54106597c06e56794ab5b7

by multilateral lending institutions to Poland.

4d1b75d1150d6b5ea3ec44e48ae435ea6d184ad8eb35d5ea6488f938c1a11505

the extension of certain financial and technical assistance to the People's
Republic of China.

6b9b07abb80319c634c7fc4560704a04282e0a957070b9270e99a462c0e4cdb2

(a) INTEREST SUBSIDY PAYMENTS- Section 2(f) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(f)) is amended--
(1) by striking paragraph (2) and redesignating paragraphs (3), (4), and
(5) as paragraphs (2), (3), and (4), respectively;
(2) by amending paragraph (3) (as so redesignated by paragraph (1) of this
subsection) to read as follows:
`(3) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS- To carry out this
subsection, there are authorized to be appropriated to the Bank not
to exceed--
`(A) $20,000,000, for fiscal year 1990; and
`(B) $50,000,000, for fiscal year 1991.'; and
(3) in paragraph (4) (as so redesignated by paragraph (1) of this
subsection), by striking `1988' and inserting `1991'.
(b) TIED AID CREDIT PROGRAM AND FUND-
(1) FURTHER NEGOTIATIONS REQUIRED- Section 15 of such Act (12 U.S.C. 635i-3)
is amended in each of subsections (a)(5), (b)(1), and (g)(2)(E), by striking
`restricting' and inserting `eliminating'.
(2) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 1990,
1991, AND 1992- Section 15(e)(1) of such Act (12 U.S.C. 635i-3(e)(1))
is amended by inserting `, and for fiscal years 1990, 1991, and 1992,
$200,000,000' after `$300,000,000'.
(c) AUTHORITY TO ACCEPT REIMBURSEMENT FOR CERTAIN EXPENSES- Section 2(a)(1)
of such Act (12 U.S.C. 635(a)(1)) is amended--
(1) in the 6th sentence--
(A) by striking `The Bank may' and inserting `Subject to regulations which
the Bank shall issue pursuant to section 553 of title 5, United States Code,
the Bank may'; and
(B) by inserting `, and may accept reimbursement for travel and subsistence
expenses incurred by a director, officer, or employee of the Bank, in
accordance with subchapter I of chapter 57 of title 5, United States Code'
before the period; and
(2) in the 7th sentence, by inserting `and shall be offset against the
expenses of the Bank for such activities' before the period.
(d) CLARIFYING AMENDMENT- Section 2(b)(6)(G) of such Act (12
U.S.C. 635(b)(6)(G)) is amended by striking `this paragraph' and inserting
`subparagraphs (B), (C), (D), and (F)'.
(e) REPORT WITH RESPECT TO LOAN LOSS RESERVES- Before the end of the
6-month period beginning on the date of the enactment of this section,
the Export-Import Bank of the United States shall submit a report to the
Congress explaining why the Bank has not established a loan loss reserve. In
preparing such report, the Bank shall--
(1) determine if the establishment of a loan loss reserve would result
in the unproductive characterization of the creditworthiness of certain
types of bor- rowers;
(2) consult with the appropriate Executive branch entities to determine
the budgeting and financial management implications of establishing a loan
loss reserve;
(3) review whether, and the extent to which similar bilateral and
multilateral lending institutions make provision against loan losses; and
(4) report on the steps needed to return the Bank to profitability.

a9d44b8b4fa0315dc71aad13556e347021498847e9d327f767e0469c1a88fe21

PROHIBITED UNLESS CERTAIN CONDITIONS ARE MET.
Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by adding at the end the following:
`(12) PROHIBITION RELATING TO ANGOLA- Notwithstanding any determination
by the President under paragraph (2) or (11), the Bank may not guarantee,
insure, or extend (or participate in the extension of) credit in connection
with any export of any good (other than food or an agricultural commodity)
or service to the People's Republic of Angola until the President certifies
to the Congress that free and fair elections have been held in Angola in
which all participants were afforded free and fair access, and that the
government of Angola--
`(A) is willing, and is actively seeking, to achieve an equitable political
settlement of the conflict in Angola, including free and fair elections,
through a mutual cease-fire and a dialogue with the opposition armed forces;
`(B) has demonstrated progress in protecting internationally recognized
human rights, and particularly in--
`(i) ending, through prosecution or other means, involvement of members
of the military and security forces in political violence and abuses of
internationally recognized human rights;
`(ii) vigorously prosecuting persons engaged in political violence who
are connected with the government; and
`(iii) bringing to justice those responsible for the abduction, torture,
and murder of citizens of Angola and citizens of the United States; and
`(C) has demonstrated progress in its respect for, and protection of--
`(i) the freedom of the press;
`(ii) the freedom of speech;
`(iii) the freedom of assembly;
`(iv) the freedom of association (including the right to organize for
political purposes);
`(v) internationally recognized worker rights; and
`(vi) other attributes of political pluralism and democracy.
The President shall include in each report made pursuant to this paragraph a
detailed statement with respect to each of the conditions set forth in this
paragraph. This paragraph shall not be construed to impose any requirement
with respect to Angola that is more restrictive than any requirement imposed
by this section generally on all other countries.'.

05fe2e355b91542550b61d06ec8da72101d868259a5add271e46c9c4dcd585dc

INTER-AMERICAN DEVELOPMENT BANK; INCREASE IN RESOURCES OF FUND FOR SPECIAL
OPERATIONS.
The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is amended
by adding at the end the following:
`SEC. 33. CAPITAL INCREASE; INCREASE IN RESOURCES OF FUND FOR SPECIAL
OPERATIONS.
`(a) AUTHORITY TO VOTE FOR, AND TO SUBSCRIBE AND CONTRIBUTE TO, INCREASE
IN AUTHORIZED CAPITAL STOCK OF BANK AND INCREASE IN RESOURCES OF FUND FOR
SPECIAL OPERATIONS-
`(1) VOTE AUTHORIZED- The United States Governor of the Bank is authorized
to vote for resolutions which--
`(A) were transmitted by the Board of Executive Directors to the Governors
of the Bank by resolution of April 19, 1989;
`(B) are pending before the Board of Governors of the Bank; and
`(C) provide for--
`(i) an increase in the authorized capital stock of the Bank and
subscriptions to the Bank; and
`(ii) an increase in the resources of the Fund for Special Operations and
contributions to the Fund.
`(2) SUBSCRIPTION AND CONTRIBUTION AUTHORITY- To the extent and in the
amounts provided in advance in appropriations Acts, on adoption of the
resolutions described in paragraph (1), the United States Governor of the
Bank may, on behalf of the United States--
`(A) subscribe to 760,112 shares of the increase in the authorized capital
stock of the Bank; and
`(B) contribute $82,304,000 to the Fund for Special Operations.
`(b) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS- To pay for the
subscription and contribution authorized under subsection (a), there are
authorized to be appropriated, without fiscal year limitation, for payment
by the Secretary of the Treasury--
`(1) $9,169,559,712, for the United States subscription to the capital
stock of the Bank; and
`(2) $82,304,000, for the United States contribution to the Fund for
Special Operations.
`(c) ORGANIZATIONAL CHANGES REQUIRED TO BE MADE BEFORE PAYMENT FOR
SUBSCRIPTION TO CAPITAL STOCK AND CONTRIBUTION TO THE FUND FOR SPECIAL
OPERATIONS- The Secretary of the Treasury may not make any payment for
the subscription and contribution authorized under subsection (a) unless
the Bank--
`(1) has established an environmental unit with responsibility for the
development, evaluation, and integration of Bank policies, projects, and
programs designed to promote environmentally sustainable development in
borrower countries;
`(2) has increased the number of the staff of the Bank with environmentally
oriented responsibilities and training;
`(3) provides for an increase in the number of environmentally beneficial
projects and programs financed by the Bank; and
`(4) has designed a process for ensuring the access of indigenous
non-governmental organizations to the process for designing projects
and programs.'.

9370347baae1abb03a69f2d3aa8b6a948155748b7ddcb06f5a01aedcc30af56d

(a) PROMOTION OF LENDING IN SUPPORT OF HUMAN CAPITAL- The Inter-American
Development Bank Act (22 U.S.C. 283 et seq.) is amended by adding after
the section added by section 201 of this Act the following:
`SEC. 34. INVESTMENT IN HUMAN CAPITAL.
`(a) IN GENERAL- The Secretary of the Treasury shall instruct the United
States Executive Director of the Inter-American Development Bank to
propose and use the voice and vote of such director, during the 4-year
period beginning on January 1, 1990, to vigorously promote an increase in
the proportion of Bank lending in support of projects and programs which
support investments in human capital and to seek the rapid implementation
by the Bank of systematic mechanisms of consultation with locally affected
populations in borrower countries either directly or through appropriate
representative non-governmental organizations.
`(b) INVESTMENTS IN HUMAN CAPITAL DEFINED- As used in subsection (a),
the term `investments in human capital' means investments in projects,
policies, and programs designed to improve urban and rural health care
and sanitation, basic nutrition, education, the small-producer private
sector, the economic activities of women, and the development of indigenous
non-governmental organizations.'.
(b) REPORT TO THE CONGRESS- The Chairman of the National Advisory Council on
International Monetary and Financial Policies shall include in the report
required by section 1701 of the International Financial Institutions Act
for fiscal year 1991 a report on the efforts undertaken by the United
States Executive Director of the Inter-American Development Bank, and
the progress to date, in achieving the objectives of section 34 of the
Inter-American Development Bank Act.

46f465027c60bb862c0e971a27f8a4a6ef84fe1af9feca8f325386ed96157dab

The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is amended
by adding after the section added by section 202 of this Act the following:
`SEC. 35. LIMITATIONS ON POLICY BASED LENDING.
`The Secretary of the Treasury shall take all necessary steps to encourage
the Bank to limit--
`(1) the aggregate value of the policy based loans made by the Bank (other
than policy based loans made to any country which the Bank has determined
is economically less developed or has a limited market economy, which are
used to purchase sovereign debt of such country or to reduce the debt or
debt service burden of such country) during the 4-year period beginning
on January 1, 1990, to 25 percent of the aggregate value of all loans made
by the Bank during such 4-year period;
`(2) the aggregate value of the policy based loans made by the Bank to the
government of a particular country during such 4-year period, to 50 percent
of the aggregate value of all loans made by the Bank to such government
during such 4-year period;
`(3) instruct the United States Executive Director of the Bank to explore
with the other Executive Directors of the Bank ways to use the resources
made available to the Bank by reason of the subscription and contribution
described in section 33(a)(2) for debt reduction and debt service reduction
for countries described in paragraph (1); and
`(4) before the end of the 12-month period beginning on the date of the
enactment of this section, report to the Congress on the matters described
in paragraph (3).'.

bcf845cd60041fa8dbfd2c4ba5c0311c85645f0fc745466c6ae2eea1432479de

The Inter-American Development Bank Act (22 U.S.C. 283 et seq.) is amended
by adding after the section added by section 203 of this Act the following:
`SEC. 36. INCREASE IN LENDING TO THE CARIBBEAN.
`The Secretary of the Treasury shall instruct the United States Executive
Director of the Bank to enter into discussions with the management of the
Bank and with other member country governments to seek to increase Bank
lending to the Caribbean region, directly or through appropriate financial
intermediaries, for viable projects which will--
`(1) result in expanded regional economic integration, diversification,
and industrial and agricultural production, and improved infrastructure; and
`(2) seek to ensure equitable and environmentally sustainable economic
growth.'.

e8e1a34be687105982dc1d54d6104bef6ed6e4219106eb1d508802e056fe7e12

SHOULD REDUCE DEPENDENCE ON ILLICIT NARCOTICS.
It is the sense of the Congress that, whenever possible and appropriate,
loans made by the Inter-American Development Bank during the 4-year period
beginning on January 1, 1990, should promote economic development which
will reduce the growing economic dependence on the production and transit
of illicit narcotics in certain borrower countries.

e974e35f9b4b012900a8b76cd5f81b939ea78946c7116eed1215a4e1ea397989

RECEIVING IADB LOANS.
The International Financial Institutions Act (22 U.S.C. 262c et seq.) is
amended by redesignating section 1612 as section 1613 and by inserting
after section 1611 the following:
`SEC. 1612. DIRECTIVES REGARDING GOVERNMENT-OWNED ENTERPRISES IN COUNTRIES
RECEIVING IADB LOANS.
`(a) FINDING- The Congress finds that a principal focus of United States
Government policy in the multilateral development banks has been and should
be to foster greater development of the private sector in member borrowing
countries of such banks.
`(b) TECHNICAL ASSISTANCE TO TRANSFORM GOVERNMENT-OWNED ENTERPRISES
INTO PRIVATELY OWNED ENTERPRISES- In order to assist and strengthen the
advancement of ongoing efforts to have the Inter-American Development Bank
play a key role in building a viable private sector in member borrowing
countries of such bank, and to further assist such bank in its determination
to facilitate the transfer of government-owned enterprises in such countries
to private ownership, the Secretary of the Treasury shall instruct the
United States Executive Director of such bank to vigorously encourage the
provision of technical assistance to such countries to transform enterprises
owned, in whole or in part, by the governments of such countries into
privately owned, self-sufficient enterprises. Such technical assistance may
involve the valuation of the assets of such government-owned enterprises,
the assessment of tender offers, and the creation or strengthening of
market-based mechanisms to facilitate such a transfer of ownership.'.

f65f47a422504b10d552281128548f4edde4702bbb64bd486ae915500f2c43b1

STRUCTURAL ADJUSTMENT FACILITY OF THE INTERNATIONAL MONETARY FUND.
The Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is amended by
adding at the end the following:
`SEC. 54. CONTRIBUTION TO THE INTEREST SUBSIDY ACCOUNT OF THE ENHANCED
STRUCTURAL ADJUSTMENT FACILITY OF THE INTERNATIONAL MONETARY FUND.
`(a) CONTRIBUTION AUTHORIZED-
`(1) IN GENERAL- Subject to paragraph (2), the United States Governor of
the Fund may contribute $150,000,000 to the Interest Subsidy Account of
the Enhanced Structural Adjustment Facility of the Fund on behalf of the
United States.
`(2) CONDITION- The United States Governor of the Fund may not make a
commitment to contribute any amount authorized to be contributed under
paragraph (1) before an amount equal to such amount has been appropriated
for such purpose.
`(b) LIMITATION ON AUTHORIZATION OF APPROPRIATIONS- To pay for the
contribution authorized by subsection (a), there are authorized to be
appropriated not to exceed $150,000,000, without fiscal year limitation,
for payment by the Secretary of the Treasury.'.

f8d01bc797f315accf3ae08f700e30c5e2f7eac971bca7cc9922e66d38512d3c

FUND TO ALLEVIATE THE POTENTIALLY ADVERSE IMPACTS OF FUND PROGRAMS ON THE
POOR AND THE ENVIRONMENT.
The Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is amended by
adding after the section added by section 301 of this Act the following:
`SEC. 55. DISCUSSIONS TO ENHANCE THE CAPACITY OF THE FUND TO ALLEVIATE THE
POTENTIALLY ADVERSE IMPACTS OF FUND PROGRAMS ON THE POOR AND THE ENVIRONMENT.
`The Secretary of the Treasury shall instruct the United States Executive
Director of the Fund to seek policy and staffing changes by the Fund, through
formal initiatives and through bilateral discussions, which will result in--
`(1) the initiation of a systematic review of policy prescriptions
implemented by the Fund, for the purpose of determining whether the Fund's
objectives were met and the social and environmental impacts of such policy
prescriptions; and
`(2) the establishment of procedures which ensure the inclusion, in future
economic reform programs approved by the Fund, of policy options which
eliminate or reduce the potential adverse impact on the well-being of the
poor or the environment resulting from such programs.'.

019851c47ca3c108b2065b0a75ec85a7885d148e872bca749b9906e9d2b9b3e9

This title may be cited as the `Foreign Debt Reserving Act of 1989'.

980f3934767ef1bc8d21a6aa950ca811db4656dde4132984c7964be68c087e7e

The purposes of this title are to strengthen the financial soundness
of the United States banking system by requiring increased reserves on
risky Third World debt portfolios, and to encourage commercial banks to
participate in reducing the debt of highly indebted countries.

7ddd76a8d79c9e6e0cdc9303be7dbcb24c8df5f5849b602d68526edd80ac3914

(a) IN GENERAL- The International Lending Supervision Act of 1983
(12 U.S.C. 3901 et seq.) is amended by inserting after section 905 the
following new section:
`SEC. 905A. ADDITIONAL RESERVE REQUIREMENTS.
`(a) FINDINGS- The Congress finds that--
`(1) adequate reserves against loan losses are necessary for the safe and
sound operation of depository institutions and for the protection of the
federal deposit insurance funds;
`(2) since the adoption of this Act, the credit quality of loans by United
States banking institutions to highly indebted countries has deteriorated
and the prospects for full repayment of such loans have diminished;
`(3) United States banking institutions have increased their reserves
for possible losses from loans to highly indebted countries, but such
reserves, for some banking institutions, may not be adequate to deal with
potential risks;
`(4) banking institutions in a number of foreign countries have established
reserves against potential losses arising from loans to highly indebted
countries in amounts that are significantly greater than the average loan
loss reserves established by United States banking institutions; and
`(5) in order to deal adequately with the transfer risk inherent in loans to
highly indebted countries, reserves should be increased and the appropriate
Federal banking agencies should be required to increase reserve requirements
with respect to such loans.
`(b) ADDITIONAL RESERVES REQUIRED-
`(1) IN GENERAL- Each appropriate Federal banking agency shall require a
banking institution to establish and maintain a level of loan loss reserves
that is in general significantly greater than the levels maintained as of
June 30, 1989, relative to the exposure of the institution to risk with
respect to the medium- and long-term loans made by such institution that
are outstanding to any highly indebted country.
`(2) DETERMINATION OF INSTITUTIONAL EXPOSURE TO RISK- In determining
the exposure of an institution to risk for purposes of paragraph (1),
the appropriate Federal banking agency may--
`(A) treat, as reducing such exposure, any loan which is--
`(i) made as part of a debt reduction or financing program approved by the
International Bank for Reconstruction and Development or the International
Monetary Fund; or
`(ii) secured, in whole or in part, by appropriate collateral for payment
of interest or principal; and
`(B) take into account any other factors which bear on such exposure and
the particular circumstances of the institution.
`(3) TIMING-
`(A) DETERMINED BY AGENCY- Except as provided in subparagraph (B), each
appropriate Federal banking agency shall determine the timing of the
addition to reserves required by paragraph (1).
`(B) DEADLINE- Each banking institution required to establish and maintain
a reserve pursuant to paragraph (1) shall establish such reserve not later
than December 31, 1991.
`(c) HIGHLY INDEBTED COUNTRY DEFINED- As used in this section, the term
`highly indebted country' means any country designated as a `Highly Indebted
Country' in the annual World Debt Tables most recently published by the
International Bank for Reconstruction and Development before the date of
the enactment of this section.'.

528bae9ad0b3bd3dfead0ab0149f6a67010fae35865d479202b8d321b0eb2618

(a) REPORT REQUIRED- Before the end of the 90-day period beginning on
the date of the enactment of this section, the Board of Governors of
the Federal Reserve System, the Federal Deposit Insurance Corporation,
and the Comptroller of the Currency shall jointly report to the Committee
on Banking, Finance and Urban Affairs of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate on the
merits of mark to market accounting treatment as an appropriate accounting
treatment for the sovereign debt of highly indebted countries which is
held by United States commercial banks.
(b) CONTENTS OF REPORT- The report required under subsection (a) shall
include--
(1) a discussion of why mark to market accounting treatment should not be
required as the appropriate accounting treatment for the sovereign debt
of highly indebted countries which is held by United States commercial banks;
(2) a discussion of whether generally accepted accounting principles
require mark to market accounting treatment of such debt; and
(3) a description of the factors which the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation, and
the Comptroller of the Currency will consider in future assessments of
the applicability of mark to market accounting to such debt.

697782e7a312b3631c76fe9a514e5388ffed76e4a8bc5f1a385cb38353056f55

(a) IN GENERAL- The Secretary of the Treasury shall instruct the United
States Executive Director of the International Monetary Fund to propose
that the Fund conduct a study on multilateral means by which the banking
industry might help reverse capital flight from countries which are engaged
in debt restructuring, including--
(1) the feasibility of disclosing the names of account holders whose
accounts may consist of flight capital, and the balances of such accounts;
(2) the usefulness of such disclosures in deterring the creation and
maintenance of such accounts, and how such deterrence would operate or
be defeated;
(3) the extent to which any such information is gathered and to whom such
information is made available;
(4) the receptiveness of such countries to the disclosure of such
information;
(5) the difficulties in, and the cost of, collecting such information and
overcoming legal obstacles used to disguise the true ownership of such
deposits, including the feasibility of using the threat of confiscatory
penalties to prevent the disguising of the ownership of deposits;
(6) the usefulness of using taxes as a means to encourage the repatriation
of flight capital; and
(7) the applicability (if any) of efforts to facilitate the identification,
tracing, seizure, and forfeiture of drug crime proceeds, and to prevent
the use of the banking system and of financial institutions for the purpose
of money laundering.
(b) FLIGHT CAPITAL DEFINED- As used in subsection (a), the term `flight
capital' means any asset--
(1)(A) which is deposited in a banking institution for safekeeping or
investment purposes; or
(B) for which a financial institution serves as a conduit, an agent,
or a fiduciary in a transaction; and
(2) the owner of which may be a legal resident of a country other than
the country in which the institution is located.
(c) REPORT TO THE CONGRESS- Not later than the end of the 180-day period
beginning on the date of the enactment of this Act, the Secretary of the
Treasury shall submit to the Chairman of the Committee on Banking, Finance
and Urban Affairs of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report on the actions
taken and studies completed as required by subsection (a).

dbe61f204d107b79ab46757968f0967451707644b8ffa3736768fc62da39c189

POLICY TOWARD DEBT REDUCTION FOR CERTAIN HIGHLY INDEBTED COUNTRIES; REPORT
TO THE CONGRESS.
(a) FACTORS TO BE TAKEN INTO ACCOUNT- In developing the policy of the
United States Government with respect to debt reduction for each highly
indebted country which has a substantial share of the export market for
1 or more agricultural commodities the export market for which the United
States also has a substantial share, the Secretary of the Treasury shall
take into account the effects of such policy on each of the following:
(1) The volume of United States exports of such commodities.
(2) The world price of such commodities.
(3) Domestic farm income in the United States for producers of such
commodities.
(4) Farm program outlays of the Federal Government.
(5) Domestic agricultural production and land distribution patterns in
such country.
(6) The income of small-scale producers of agricultural commodities in
such country.
(7) The volume of exports from such country of agricultural commodities
the export market for which such country has a substantial share.
(8) Basic nutrition levels in such country.
(b) REPORT TO THE CONGRESS- Before the end of the 12-month period beginning
on the date of the enactment of this section, the Secretary of the Treasury
shall submit a report to the Congress which analyzes, for each highly
indebted country described in subsection (a), the effects of the policy
of the United States Government with respect to debt reduction in each of
the areas listed in subsection (a).
(c) HIGHLY INDEBTED COUNTRY DEFINED- As used in this section, the term
`highly indebted country' means any country designated as a `Highly Indebted
Country' in the annual World Debt Tables most recently published by the
International Bank for Reconstruction and Development before the date of
the enactment of this section.

5db957cd9886375a20ee7239cd5e0f680d6e65ac813b875e21ed8b5aae084884

BE ACCOMPANIED BY TRADE LIBERALIZATION.
(a) FINDINGS- The Congress finds that--
(1) Third World debtor nations have often been forced to raise trade barriers
in order to accumulate foreign exchange surpluses to repay debt obligations;
(2) trade flows between such nations and the United States have lessened
due to the debt crisis;
(3) the reduction of trade barriers would benefit the world economy and
promote economic growth; and
(4) the Brady plan encourages debt reduction agreements on behalf of
domestic financial institutions.
(b) SENSE OF THE CONGRESS- It is the sense of Congress that the Secretary
of the Treasury should continue to encourage trade liberalization as an
element of economic reform programs.

94494892666a1ad2ad1e3799b738efbd2851cea7fcd6f23453ae1d5309454dff

REPORT TO CONGRESS.
(a) FINDINGS- The Congress finds that--
(1) the Brady Initiative is a positive step, recognizing as it does
the need for reducing the debt and debt service burdens of the indebted
developing countries;
(2) the multilateral development banks should, as part of this debt
reduction process, encourage such countries to further reform their
economies by reducing their dependence on production and trafficking of
illicit narcotics; and
(3) reduction of debt should relieve some of the financial burden on these
countries; and thereby enable them to rely on legal income-generating
activities.
(b) INSTRUCTION OF UNITED STATES EXECUTIVE DIRECTORS- The Secretary of
the Treasury shall instruct the United States Executive Director of each
multilateral development bank that, in voting with respect to loans from
the multilateral development bank to reduce the debt and debt burden
of borrowing countries, the Executive Director shall give preference to
those countries which show marked improvement in reducing the volume of
cultivation, processing, trafficking, and export to the United States of
illegal drugs. In making a determination under the preceding sentence with
respect to a country's improvement, the Secretary of the Treasury shall
consult with the heads of the relevant agencies.
(c) REPORT TO CONGRESS- The Secretary of the Treasury shall include, in
the detailed accounting required by section 2018(c) of the International
Narcotics Control Act of 1986 (22 U.S.C. 2191 note), relating to multilateral
development bank assistance for drug eradication and crop substitution
programs, an additional discussion of the steps taken and the progress
made in implementing the goals set forth in subsection (b) of this section,
and further steps needed to secure the achievement of these goals.
(d) DEFINITIONS- As used in this section--
(1) the term `multilateral development bank' includes the International
Bank for Reconstruction and Development, the International Development
Association, the International Finance Corporation, the Inter-American
Development Bank, the Inter-American Investment Corporation, the Asian
Development Bank, the African Development Bank, and the African Development
Fund; and
(2) the term `illegal drugs' means `narcotic and psychotropic drugs and
other controlled substances', as defined in section 481(i)(3) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2291(i)(3)).
DEBT-FOR-DEVELOPMENT SWAPS; CONSOLIDATION OF REPORTING REQUIREMENTS
Subtitle A--Alleviation of Poverty

75758f2d99b14753b9bb0535ec8245a515d8517d4d5eb87f3053ac257b5ffd7e

The International Financial Institutions Act (22 U.S.C. 262c et seq.) is
amended by redesignating section 1613 (as so redesignated by section 206
of this Act) as section 1614 and by inserting after section 1612 (as added
by such section 206) the following:
`SEC. 1613. DISCUSSIONS TO INCREASE THE PRODUCTIVE ECONOMIC PARTICIPATION
OF THE POOR; REPORTS.
`(a) IN GENERAL- The Secretary of the Treasury shall instruct the United
States Executive Director for each multilateral development bank to
vigorously and continually advocate, in all replenishment negotiations
and in discussion with other directors of such bank and with such bank,
the following:
`(1) A major objective of such bank's operations and financing in each
borrowing country, as a long term priority, should be to increase the
productive role of the poor in the economy of such country.
`(2) Such bank should encourage and assist each borrowing country to
develop sustainable national plans and strategies to eliminate the
causes and alleviate the manifestations of poverty which keep the poor
from leading economically and socially productive lives. Such plans and
strategies should give attention to--
`(A) the enhancement of human resources, including programs for basic
nutrition, primary health services, basic education, and safe water and
basic sanitation;
`(B) access to income-generating activities, employment, and productive
assets such as land and credit; and
`(C) consultation with public sector social agencies and local
non-governmental organizations.
`(3) As an integral element of ongoing policy dialogue with each borrowing
country to design structural adjustment plans and project lending programs,
such bank should provide assistance consistent with achieving the
objectives of the country's national plan for increasing the productive
economic participation of the poor. Such dialogue should be conducted
with government agencies working in social and economic sectors and with
non-governmental groups in the borrowing country, especially those that
have grassroots involvement with poor people.
`(4) In an annual review document, such bank should describe the extent
to which the goal of increasing the productive economic participation of
the poor is being advanced or retarded and the steps that are being taken
to overcome obstacles to its fulfillment. Such review should be based on
information contained in the bank's country implementation review documents
and in the country strategy documents for each borrowing country. Such
country strategy documents should describe the national strategy for
productive economic participation of the poor and the steps the bank plans
to take to assist the borrowing country during the period covered by the
country strategy document.
`(5) Such bank should assist countries in assessing and monitoring progress
in achieving poverty alleviation goals and targets through measurement by
appropriate social indicators.
`(6) Such bank should adopt procedures and budgetary allocations for
administrative purposes, and establish appropriate staffing levels,
to ensure that adequate resources are available to implement the bank's
program for enhancing the productive economic participation of the poor,
in consultation with non-governmental groups.
`(7) Such bank should adopt, as a separate and major criterion in the
allocation of concessional financing resources, a preferential allocation to
each country which undertakes significant efforts to enhance the productive
economic participation of the poor.
`(8) Such bank should require each country which receives structural
adjustment assistance to have in place, after a reasonable phase-in period,
a strategy to enhance the productive economic participation of the poor.
`(b) PROGRESS REPORT- Before the end of the 1-year period beginning on
the date of the enactment of this section, the Secretary of the Treasury
shall submit to the Committee on Banking, Finance and Urban Affairs and
the Committee on Appropriations of the House of Representatives, and the
Committee on Foreign Relations and the Committee on Appropriations of the
Senate, a report on the following:
`(1) The status of advocacy and progress being made to implement the
objectives of subsection (a), describing the success to date, the obstacles
encountered, and future expectations of progress.
`(2) A description of the progress to date in achieving the purposes of
section 1611, including the institutional capacity and effort devoted
to assisting in the development of statistical measures to assess the
well-being of the poor.
`(3) A description and evaluation of the progress to date in developing
effective mechanisms for involving non-governmental organizations, directly
or indirectly, in the design, implementation, and monitoring of development
projects, programs, and policies of the multilateral development banks.'.
Subtitle B--Tropical Forest Protection

97dbf66503029a1fea98f0e66150f581b7056602aa04418e23c58c7ff6ba8d27

-ALLEVIATION OF POV- ERTY; ENVIRONMENTAL PROVISIONS;

This subtitle may be cited as the `Tropical Forest Protection Act of 1989'.

eba29f86343c474057a7bdb12e53376e2c32962506740a5448350ed71407443e

The purposes of this subtitle are as follows:
(1) Protect tropical forests in debtor developing countries which will--
(A) stabilize the global climate;
(B) preserve biological diversity; and
(C) ensure future sustainable growth in such developing countries by
preventing resource degradation and genetic erosion.
(2) Enable and encourage developing countries to establish and strengthen
local institutions to formulate natural resource policy and manage natural
resources.
(3) Improve the quality of life for those dependent on renewable natural
resources in debtor developing countries.

753b4ce1263f57e22af509b2b7644c1649433245187122ece09767214833328f

The International Financial Institutions Act (22 U.S.C. 262c et seq.) is
amended by redesignating section 1614 (as so redesignated by section
501 of this Act) as section 1617, and by inserting after section 1613
(as added by such section 501) the following:
`SEC. 1614. PROMOTION OF THE PRESERVATION AND PROTECTION OF TROPICAL FORESTS
AND OTHER ENDANGERED ECOSYSTEMS OR SPECIES THROUGH ENVIRONMENTAL LENDING
PROGRAMS AND DEBT-FOR-NATURE SWAPS.
`The Secretary of the Treasury shall instruct the United States Executive
Directors of the multilateral development banks to vigorously promote
the adoption of policies and procedures which seek to preserve and
protect tropical forests and other endangered ecosystems or species in
debtor developing countries by assisting such countries in reducing and
restructuring private debt through the use of a portion of a project
or policy based environmental loan in ways which will enable such
countries to buy back private debt at a rate of discount available for
such debt, at auction in the secondary market or through negotiations
with creditors holding such debt, if such country, in collaboration with
local and international nongovernmental or private voluntary organizations
for protection of the environment, as appropriate, converts an agreed
upon amount of its debt to local currency for use in debt-for-nature
swap programs, establishes set-asides, grants conservation easements,
or establishes other environmentally beneficial projects, programs, or
policies, which provide for the protection and preservation of tropical
forests or other critical ecosystems or species that are renewable natural
resources, including funding to--
`(1) promote scientific inquiry and limited tourism in forests;
`(2) establish tree nurseries and other facilities for the reforestation
of land which has been deforested;
`(3) develop and implement curricula, materials, communications media
programs, and education facilities for use in promoting the education of
the public;
`(4) establish public data collection systems, information management and
analysis systems, and remote sensing systems;
`(5) develop and implement research facilities and resource management
training programs;
`(6) develop and implement comprehensive and cohesive land management
programs and environmental policy, regulations, and incentives; or
`(7) protect and manage parks and preserves.
`SEC. 1615. PROMOTION OF LENDING FOR THE ENVIRONMENT.
`The Secretary of the Treasury shall instruct the United States Executive
Director of the International Bank for Reconstruction and Development to
initiate discussions with the other executive directors of such bank and
the management of such bank and propose that, in order to reduce the future
need for bank lending for reforestation and restoration of environmentally
degraded areas, the bank establish a project and policy based environmental
lending program (including a loan a portion of which could be used to
reduce and restructure private debt), to be made available to interested
countries with a demonstrated commitment to natural resource conservation,
which would be based on--
`(1) the estimated long-term economic return which could be expected from
the sustainable use and protection of tropical forests, including the
value of tropical forests for indigenous people and for science;
`(2) the value derived from such services as--
`(A) watershed management;
`(B) soil erosion control;
`(C) the maintenance and improvement of--
`(i) fisheries;
`(ii) water supply regulation for industrial development;
`(iii) food;
`(iv) fuel;
`(v) fodder; and
`(vi) building materials for local communities;
`(D) the extraction of naturally occurring products from locally controlled
protected areas; and
`(E) indigenous knowledge of the management and use of natural resources; and
`(3) the long-term benefits expected to be derived from maintaining
biological diversity and climate stabilization.
`SEC. 1616. PROMOTION OF INSTITUTION-BUILDING FOR NON-GOVERNMENTAL
ORGANIZATIONS CONCERNED WITH THE ENVIRONMENT.
`The Secretary of the Treasury shall instruct the United States Executive
Directors of the multilateral development banks to vigorously promote the
adoption of policies and procedures which seek to--
`(1) increase collaboration with, and, where necessary, strengthen,
nongovernmental organizations in such countries which are concerned with
environmental protection by providing appropriate assistance and support
for programs and activities on environmental protection; and
`(2) encourage international collaboration for information exchange
and project enhancement with nongovernmental organizations in developing
countries which are concerned with environmental protection and government
agencies and private voluntary organizations in developed countries which
are concerned with environmental protection.'.
Subtitle C--Environmental Impact Assessments

b919c00f0d51aa44363c37f7410db4b0e21557bc19b8755a591e42b7f2241c6c

DEVELOPMENT BANK ACTIONS.
Title XIII of the International Financial Institutions Act (22 U.S.C. 262m
et seq.) is amended by adding at the end the following:
`SEC. 1308. ASSESSMENT OF ENVIRONMENTAL IMPACT OF PROPOSED MULTILATERAL
DEVELOPMENT BANK ACTIONS.
`(a) ASSESSMENT REQUIRED BEFORE FAVORABLE VOTE ON ACTION-
`(1) IN GENERAL- Beginning 2 years after the date of the enactment of this
section, the Secretary of the Treasury shall instruct the United States
Executive Director of each multilateral development bank not to vote in
favor of any action proposed to be taken by the respective bank which
would have a significant effect on the human environment, unless for at
least 120 days before the date of the vote--
`(A) an assessment analyzing the environmental impacts of the proposed
action and of alternatives to the proposed action has been available to
the Executive Director; and
`(B) except as provided in paragraph (2), such assessment and a comprehensive
summary of such assessment has been available to all other interested
Federal agencies and to interested members of the public.
`(2) EXCEPTION FOR DISCLOSURES JEOPARDIZING CONFIDENTIAL RELATIONSHIP-
`(A) EXCEPTION- The requirement of paragraph (1)(B) shall not apply in
any case where the Secretary finds compelling reasons to believe that
disclosure described in paragraph (1)(B) would jeopardize the confidential
relationship between the borrower country and the respective bank.
`(B) REPORT BY SECRETARY- Within 30 days after the Secretary makes a finding
described in subparagraph (A), the Secretary shall report in writing to
the Committees specified in subsection (f)(1) the Secretary's reasons for
such finding, and shall include with such report the comprehensive summary
described in paragraph (1)(B).
`(b) ACCESS TO ASSESSMENTS IN ALL MEMBER COUNTRIES- The Secretary
of the Treasury shall seek the adoption of policies and procedures,
through discussions and negotiations with the other member countries of
the multilateral development banks and with the management of such banks,
which result in access by governmental agencies and interested members of the
public of such member countries, to environmental assessments or documentary
information containing comprehensive summaries of such assessments which
discuss the environmental impact of prospective projects and programs being
considered by such banks. Such assessments or summaries should be made
available to such governmental agencies and interested members of the public
at least 120 days before scheduled board action, and public participation
in review of the relevant environmental information should be encouraged.
`(c) CONSIDERATION OF ASSESSMENT- The Secretary of the Treasury shall--
`(1) ensure that an environmental impact assessment or comprehensive
summary of such assessment described in subsection (a) accompanies loan
proposals through the agency review process; and
`(2) take into consideration recommendations from all other interested
Federal agencies and interested members of the public.
`(d) DEVELOPMENT OF PROCEDURES FOR SYSTEMATIC ENVIRONMENTAL ASSESSMENT-
The Secretary of the Treasury, in consultation with other Federal agencies,
including the Environmental Protection Agency, the Department of State,
and the Council on Environmental Quality, shall--
`(1) instruct the United States Executive Director of each multilateral
development bank to initiate discussions with the other executive directors
of the respective bank and to propose that the respective bank develop and
make available to member governments of, and borrowers from, the respective
bank, within 18 months after the date of the enactment of this section,
a procedure for the systematic environmental assessment of development
projects for which the respective bank provides financial assistance,
taking into consideration the Guidelines and Principles for Environmental
Impact Assessment promulgated by the United Nations Environmental Programme
and other bilateral or multilateral assessment procedures; and
`(2) in determining the position of the United States on any action
proposed to be taken by a multilateral development bank, develop and
prescribe procedures for the consideration of, among other things--
`(A) the environmental impact assessment of the action described in
subsection (a);
`(B) interagency and public review of such assessment; and
`(C) other environmental review and consultation of such action that is
required by other law.
`(e) USE OF UNITED STATES PERSONNEL- The Secretary of the Treasury, in
consultation with the Secretary of State, the Secretary of the Interior,
the Administrator of the Environmental Protection Agency, the Chairman of
the Council on Environmental Quality, the Administrator of the Agency for
International Development, and the Administrator of the National Oceanic
and Atmospheric Administration, shall--
`(1) make available to the multilateral development banks, without charge,
appropriate United States Government personnel to assist in--
`(A) training bank staff in environmental impact assessment procedures;
`(B) providing advice on environmental issues;
`(C) preparing environmental studies for projects with potentially
significant environmental impacts; and
`(D) preparing documents for public release, and developing procedures to
provide for the inclusion of interested nongovernmental organizations in
the environmental review process; and
`(2) encourage other member countries of such banks to provide similar
assistance.
`(f) REPORTS-
`(1) IN GENERAL- The Secretary of the Treasury shall submit to the Committee
on Foreign Relations of the Senate and the Committee on Banking, Finance
and Urban Affairs of the House of Representatives--
`(A) not later than the end of the 1-year period beginning on the date of
the enactment of this section, a progress report on the efficacy of efforts
by the United States to encourage consistent and timely environmental
impact assessment of actions proposed to be taken by the multilateral
development banks and on the progress made by the multilateral development
banks in developing and instituting environmental assessment policies and
procedures; and
`(B) not later than January 1, 1993, a detailed report on the matters
described in subparagraph (A).
`(2) AVAILABILITY OF REPORTS- The reports required by paragraph (1) shall
be made available to the member governments of, and the borrowers from,
the multilateral development banks, and to the public.'.
Subtitle D--Debt-for-Development Swaps

59ba766dcd73911f128363c0f8256ab371b2ecfdd4f9a647102a8fe236e8ab6a

REPAYMENT.
(a) STATEMENT OF POLICY- It is the sense of the Congress that each
appropriate Federal banking agency should encourage debt-for-development
swaps as 1 of the menu of options available to banking institutions seeking
to participate in debt reduction agreements with highly indebted countries.
(b) NOTIFICATION RELATING TO LOCAL CURRENCY REPAYMENT THROUGH
DEBT-FOR-DEVELOPMENT SWAPS- Each appropriate Federal banking agency
shall notify each banking institution holding sovereign debt of highly
indebted countries that acceptance of local currency repayment as part
of a debt-for-development swap is a legitimate form of repayment by the
debtor if such repayment in local currency is made at a free market rate
governing the exchange of United States dollars for the local currency at
the time of the repayment.
(c) ACCOUNTING TREATMENT-
(1) IN GENERAL- Each banking institution which accepts a local currency
repayment as part of a debt-for-development swap in a manner consistent
with subsection (b) shall account for such repayment in accordance with the
standard accounting principles used to govern the valuation and accounting
for local currencies.
(2) NOTIFICATION- Before the end of the 6-month period beginning on the date
of the enactment of this section, the Comptroller of the Currency and the
Federal Deposit Insurance Corporation shall, in consultation with the Board
of Governors of the Federal Reserve System, notify each banking institution
holding debt of highly indebted countries of the accounting treatment to be
accorded to local currency repayments as part of debt-for-development swaps.
(3) SPECIAL RULE- The accounting treatment accorded local currency repayments
as part of debt-for-development swaps shall not be less favorable than the
most favorable of the other available means of accounting for and valuing
the financial assets which are the subject of such swaps.
(d) DEFINITIONS- As used in this section:
(1) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
banking agency' has the meaning given such term in section 903(1) of the
International Lending Supervision Act of 1983.
(2) BANKING INSTITUTION- The term `banking institution' has the meaning
given such term in section 903(2) of the International Lending Supervision
Act of 1983.
(3) DEBT-FOR-DEVELOPMENT SWAP- The term `debt-for-development swap' has
the meaning given such term in section 1608(b)(2) of the International
Financial Institutions Act.
(4) HIGHLY INDEBTED COUNTRY- The term `highly indebted country' means any
country designated as a `Highly Indebted Country' in the annual World Debt
Tables most recently published by the International Bank for Reconstruction
and Development before the date of the enactment of this section.
Subtitle E--Consolidation of Certain Reporting Requirements

1cf9f3f8d4bfbf120d1b98252297bc62bc442c7e5cc253606b7b0afbae0c7470

(a) IN GENERAL- The International Financial Institutions Act (22 U.S.C. 262c
et seq.) is amended by adding at the end the following:
`TITLE XVII--CONSOLIDATED REPORTING REQUIREMENTS
`SEC. 1701. ANNUAL REPORT BY CHAIRMAN OF THE NATIONAL ADVISORY COUNCIL ON
INTERNATIONAL MONETARY AND FINANCIAL POLICIES.
`(a) IN GENERAL- The Chairman shall report annually to the Speaker of
the House of Representatives, the President of the Senate, and to the
President of the United States on the participation of the United States in
the international financial institutions. The Chairman shall present such
report to the Speaker of the House of Representatives and the President
of the Senate not later than April 1 of each year following the close of
the fiscal year covered by such report.
`(b) CONTENTS OF REPORTS- Each annual report required by subsection (a)
shall contain--
`(1) such data and explanations concerning the effectiveness, operations, and
policies of the international financial institutions, such recommendations
concerning the international financial institutions, and such other data
and material as the Chairman may deem appropriate;
`(2) the reports on each specific issue and topic which is required by
any other provision of law to be included in the report of the National
Advisory Council on International Monetary and Financial Policies required
by section 4(b)(5) of the Bretton Woods Agreements Act, as in effect
immediately before the date of the enactment of this section;
`(3) a description of each loan or other form of financial assistance
approved by any international financial institution during the fiscal year
covered by such report, and a discussion of how such loan or financial
assistance will benefit the people, particularly the poor people, of the
recipient country;
`(4) a review of the success achieved through the international financial
institutions in reducing or eliminating import restrictions and unfair
export subsidies which--
`(A) have been determined to be consistent with international agreements; and
`(B) have a serious adverse impact on the United States;
`(5) a description of the actions taken and the progress made in carrying out
subsections (a) and (b) of section 45 of the Bretton Woods Agreements Act;
`(6) the report required by section 2018(c) of the International Narcotics
Act of 1986 (title II of Public Law 99-570), discussing the actions taken
and progress made in encouraging the multilateral development banks to
finance drug eradication and crop substitution programs;
`(7) a description of the progress made by the United States Executive
Director of the International Monetary Fund with respect to the goals of
section 55 of the Bretton Woods Agreements Act;
`(8) a description of the status of procedures in the multilateral
development banks specifically designed to increase the productive role of
the poor in the economies of the nations which are borrowers from such banks;
`(9) in consultation with the Secretary of State, a report on the progress
toward achieving the goals of title VII (other than section 704), including
the information required to be reported pursuant to section 701(c);
`(10) in consultation with the Secretary of State and the Administrator
of the Agency for International Development, an assessment of the progress
being made to implement the objectives of title XIII; and
`(11) a report on--
`(A) the progress made in transforming government-owned enterprises into
privately owned enterprises as described in section 1612(b);
`(B) the performance of the privately owned enterprises resulting from
such transformation; and
`(C) the contributions of development finance companies toward strengthening
the private sector in member borrowing countries.
`(c) DEFINITIONS- As used in this title, title XVIII, and title XIX:
`(1) CHAIRMAN- The term `Chairman' means the Chairman of the National
Advisory Council on International Monetary and Financial Policies.
`(2) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial
institutions' means the International Monetary Fund, International Bank
for Reconstruction and Development, International Development Association,
International Finance Corporation, Multilateral Investment Guarantee Agency,
African Development Bank, African Development Fund, Asian Development Bank,
Inter-American Development Bank, and Inter-American Investment Corporation.
`(3) MULTILATERAL DEVELOPMENT INSTITUTIONS- The term `multilateral
development institutions' means the international financial institutions
other than the International Monetary Fund.
`(4) MULTILATERAL DEVELOPMENT BANKS- The term `multilateral development
banks' means the multilateral development institutions other than the
Multilateral Investment Guarantee Agency.
`(d) TESTIMONY REQUIRED- Upon request of the Committee on Banking, Finance
and Urban Affairs of the House of Representatives, the Chairman shall
testify before the Committee to support and explain each annual report
required by subsection (a). If the President has delegated to a person
or persons other than the Chairman the authority to manage United States
participation in the international financial institutions which was vested
in the President by section 1(b) of the Reorganization Plan No. 4 of 1965,
such person or persons shall, upon request of the Committee, accompany the
Chairman and testify before the Committee with regard to such report. The
Chairman and such other person or persons shall assess, in their testimony,
the effectiveness of the international financial institutions, the major
issues affecting United States participation, the major developments in
the past year, the prospects for the coming year, United States policy
goals with respect to the international financial institutions, and any
specific issues addressed to them by any member of the Committee.
`SEC. 1702. TRANSMISSION TO THE CONGRESS OF OPERATING SUMMARIES OF THE
MULTILATERAL DEVELOPMENT BANKS.
`The Secretary of the Treasury shall transmit to the Congress, on a
monthly basis, current copies of the Monthly Operating Summary of the
International Bank for Reconstruction and Development, showing the loan
proposals or appraisal reports under consideration and the status of
those loan proposals or appraisal reports within the Bank. The Secretary
of the Treasury shall also transmit to the Congress, at such times as may
be appropriate, comparable documents prepared by the other multilateral
development banks which shown the loans or credits under consideration in
the other multilateral development banks.
`SEC. 1703. COMBINED REPORT ON EFFECT OF PENDING MULTILATERAL DEVELOPMENT BANK
LOANS ON ENVIRONMENT, NATURAL RESOURCES, PUBLIC HEALTH, AND INDIGENOUS PEOPLES.
`Not later than April 1 and October 1 of each year, the Administrator
of the Agency for International Development, in consultation with the
Secretary of the Treasury and the Secretary of State, shall submit to
the Committee on Appropriations and the Committee on Banking, Finance
and Urban Affairs of the House of Representatives, and the Committee
on Appropriations and the Committee on Foreign Relations of the Senate,
as a combined report, the reports required by section 1303(c) of this Act
and by section 537(h)(2) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1988 (sec. 1(e) of Public Law 100-202).
`TITLE XVIII--EXPORT ENHANCEMENT
`SEC. 1802. PROCUREMENT OPPORTUNITIES FOR UNITED STATES FIRMS.
`The Secretary of the Treasury shall instruct the United States Executive
Directors of the multilateral development institutions to take all possible
steps to ensure that information relating to potential procurement
opportunities for United States firms is expeditiously communicated to
the Secretary of the Treasury, the Secretary of State, and the Secretary
of Commerce, and is disseminated as widely as possible to large and small
businesses.
`TITLE XIX--PERSONNEL PRACTICES
`SEC. 1901. PERSONNEL PRACTICES.
`(a) STATEMENT OF POLICY- It shall be the policy of the United States that
no initiatives, discussions, or recommendations concerning the placement
or removal of any personnel employed by the international financial
institutions shall be based on the political philosophy or activity of
the individual under consideration.
`(b) CONSULTATION- The Secretary of the Treasury shall consult with the
Chairman and the ranking minority member of the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the Committee
on Foreign Relations of the Senate before any discussion or recommendations
by any official of the United States Government concerning the placement
or removal of any principal officer of any international financial
institutions.'.
(b) TRANSFER OF PROVISIONS RELATING TO MULTILATERAL DEVELOPMENT BANK
PROCUREMENT- (1) Section 3202 of the Omnibus Trade and Competitiveness
Act of 1988 (22 U.S.C. 262a) is hereby transferred to the International
Financial Institutions Act, inserted after the heading of title XVIII
(as added by the amendment made by subsection (a) of this section), and
redesignated as section 1801.
(2) Section 2302 of the Omnibus Trade and Competitiveness Act of 1988
(15 U.S.C. 4722) is hereby transferred to the International Financial
Institutions Act, inserted after section 1802 (as added by the amendment
made by subsection (a) of this section), redesignated as section 1803,
and amended by striking subsection (c).
(c) CONFORMING AMENDMENT- Section 701(c) of the International Financial
Institutions Act (22 U.S.C. 262d(c)) is amended to read as follows:
`(c)(1) Not later than 30 days after the end of each calendar quarter, the
Secretary of the Treasury shall report quarterly on all loans considered by
the Boards of Executive Directors of the institutions listed in subsection
(a) to the Chairman and ranking minority member of the Committee on Banking,
Finance and Urban Affairs of the House of Representatives, or the designees
of such Chairman and ranking minority member, and the Chairman and ranking
minority member of the Committee on Foreign Relations of the Senate.
`(2) Each report required by paragraph (1) shall--
`(A) include a list of all loans considered by the Board of Executive
Directors of the institutions listed in subsection (a) and shall specify
with respect to each such loan--
`(i) the institution involved;
`(ii) the date of final action;
`(iii) the borrower;
`(iv) the amount;
`(v) the project or program;
`(vi) the vote of the United States Government;
`(vii) the reason for United States Government opposition, if any;
`(viii) the final disposition of the loan; and
`(ix) if the United States Government opposed the loan, whether the loan
meets basic human needs;
`(B) indicate whether the United States has opposed any loan, financial
assistance, or technical assistance to a country on human rights grounds;
`(C) indicate whether the United States has voted in favor of a loan,
financial assistance, or technical assistance to a country with respect
to which the United States had, in the preceding 2 years, opposed a loan,
financial assistance, or technical assistance on human rights grounds; and
`(D) in cases where the United States changed its voting position from
opposition to support or from support to opposition, on human rights
grounds--
`(i) indicate the policy considerations that were taken into account in
the development of the United States voting position;
`(ii) describe human rights conditions in the country involved;
`(iii) indicate how the United States voted on all other loans, financial
assistance, and technical assistance to such country during the preceding
2 years; and
`(iv) contain information as to how the United States voting position
relates to the overall United States Government policy on human rights in
such country.'.
(d) REPEALS- The following provisions of law are hereby repealed:
(1) Paragraphs (5) and (6) of section 4(b), and sections 15(b), 30(b),
33(c), and 50, of the Bretton Woods Agreements Act (22 U.S.C. 286b(b)
(5) and (6), 286e-9(b), 286s(c), and 286b-2).
(2) Section 4(b) of the Asian Development Bank Act (22 U.S.C. 285b(b)).
(3) Section 12 of the Inter-American Development Bank Act (22 U.S.C. 283i).
(4) Sections 701(g)(1), 1103, 1307, and 1602(d) of the International
Financial Institutions Act (22 U.S.C. 262d(g)(1), 262g-2 note, 262m-6,
and 262p-1(d)).
(5) Chapter 3 of Public Law 91-599 (84 Stat. 1658).
(6) Sections 102 and 401 of Public Law 96-259 (22 U.S.C. 283 note and 262i).
(7) Sections 1005 and 1006 of the Supplemental Appropriations Act, 1984
(Public Law 98-181; 22 U.S.C. 276c-3).
(8) Section 537(c) of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1988 (sec. 101(e) of Public Law 100-202;
22 U.S.C. 262l(c)).
(e) OTHER CONFORMING AMENDMENTS- The following provisions of law are each
amended by striking the last sentence:
(1) Section 4 of the International Finance Corporation Act (22 U.S.C. 282b).
(2) Section 4 of the Inter-American Development Bank Act (22 U.S.C. 283b).
(3) Section 204 of the Inter-American Investment Corporation Act (22
U.S.C. 283cc).
(4) Section 4 of the International Development Association Act (22
U.S.C. 284b).
(5) Section 408 of the Multilateral Investment Guarantee Agency Act (22
U.S.C. 290k-5).
(6) Section 204 of the African Development Fund Act (22 U.S.C. 290g-2).
(7) Section 1335 of the African Development Bank Act (22 U.S.C. 290i-3).
(8) Section 701(d) of the International Financial Institutions Act (22
U.S.C. 262d(d)).
(f) CLERICAL AMENDMENTS-
(1) Section 4(b) of the Bretton Woods Agreements Act (22 U.S.C. 286b(b))
is amended by redesignating paragraphs (7) and (8) as paragraphs (5) and
(6), respectively.
(2) Section 30 of the Bretton Woods Agreements Act (22 U.S.C. 286e-9)
is amended by striking `(a)'.
(3) Section 4 of the Asian Development Bank Act (22 U.S.C. 285b-9) is
amended by striking `(a)'.
(4) Title XIII of the International Financial Institutions Act (22
U.S.C. 262m et seq.) is amended by redesignating section 1308 (as added
by section 521 of this Act) as section 1307.

ac30588ab8029014d8c2c8737aec96145ff8d25e6c2c0f9696990fde2bc87a0f

AND DEVELOPMENT AND THE INTERNATIONAL MONETARY FUND SHOULD EXPEDITIOUSLY
ACT UPON LOAN REQUESTS FROM POLAND.
It is the sense of the Congress that, based on the liberalization of Poland's
economic system and the opening of its economic system to market forces,
the Secretary of the Treasury should instruct the United States Executive
Directors of the International Bank for Reconstruction and Development and
of the International Monetary Fund to urge upon their colleagues that their
respective institutions move as expeditiously as possible in considering and
acting upon loan requests from, and in disbursing approved loans to, Poland.

3798f259858073028468b5e17b927ef735e3400d07848e1889836b70a1bc2ce4

INSTITUTIONS TO ESTABLISH FINANCIAL INSTITUTIONS IN POLAND.
It is the sense of the Congress that the Secretary of the Treasury
should instruct the United States Executive Directors of the multilateral
development banks (as defined in section 1617 of the International Financial
Institutions Act), of the International Finance Corporation, and of the
Multilateral Investment Guarantee Agency to enter into discussions with the
other executive directors of such institutions and, in such discussions,
urge such institutions to consider and act promptly upon (and, in the case of
the Multilateral Investment Guarantee Agency, after Poland becomes a member
country of such institution) requests by individuals and private businesses
in, and the Government of, Poland for financial and technical assistance
in the establishment of financial institutions (including institutions
such as credit unions, thrift institutions, and commercial banks) and
businesses involved in the provision of credit and financial services.

ed4a34a19702e27f21bddebf8cb5e123db74cb581330cc8d3a4be58e077f01b9

BY MULTILATERAL LENDING INSTITUTIONS TO POLAND.
It is the sense of the Congress that the Secretary of the Treasury
should instruct the United States Executive Directors of the multilateral
development banks (as defined in section 1617 of the International Financial
Institutions Act), of the International Monetary Fund, of the International
Finance Corporation, and of the Multilateral Investment Guarantee Agency
to enter into discussions with the other executive directors of such
institutions and propose that such institutions not provide financial
assistance or debt forgiveness to Poland until the government of Poland
allows and facilitates privately owned entities established in foreign
countries to invest in private commercial ventures in Poland.

1e3563642e26b6205b1868536414f80398dfe3dcdbc0a10ec54c28608a017d40

THE EXTENSION OF CERTAIN FINANCIAL AND TECHNICAL ASSISTANCE TO THE PEOPLE'S
REPUBLIC OF CHINA.
(a) FINDINGS- The Congress finds that--
(1) the Government of the People's Republic of China ordered the People's
Liberation Army to brutally attack peaceful demonstrators who had assembled
in Tiananmen Square;
(2) this attack violated the human rights of the demonstrators;
(3) several thousand innocent and defenseless protesters were killed in
the initial assault;
(4) these violations of human rights have evolved into a pattern of
continuing repression and reprisals against citizens throughout China
as evidenced by the beating of alleged dissidents, the order to the
army to shoot `rioters'--the Chinese Government's term for the peaceful
demonstrators--on sight, the mass arrest of students and workers, the
public declarations by government-controlled media that physicists Fang
Lizhi and Li Shuxian (who are being given refuge in the United States
Embassy in Beijing) are `guilty' before being afforded due process, and
the banning of all independent, unofficial prodemocracy organizations;
(5) the Government of the People's Republic of China is trying to suppress
truthful accounts of the actions taken in Beijing and throughout the country,
by, among other things, expelling foreign journalists, including the local
bureau chief of the Voice of America, from the country;
(6) the People's Republic of China has received almost $8,000,000,000
in development loans from the International Bank for Reconstruction
and Development, and increasing amounts of assistance from the Asian
Development Bank;
(7) it is morally repugnant that, through such multilateral development
banks, United States taxpayer dollars are used to support the present
policies of the People's Republic of China;
(8) such development loans cannot be justified on economic grounds because
economic development and market reforms cannot be achieved in the environment
of repression that now clearly exists there; and
(9) the People's Republic of China is engaging in `a pattern of gross
violations of internationally recognized human rights . . . such as flagrant
denial to life, liberty, and the security of person'.
(b) STATEMENT OF POLICY- It is the sense of the Congress that the President
should--
(1) instruct the United States Executive Directors of the International
Bank for Reconstruction and Development and the Asian Development Bank to
use their voices and votes to oppose the making of any loan or the extension
of any financial or technical assistance to the People's Republic of China,
in accordance with section 701(f) of the International Financial Institutions
Act; and
(2) consider the People's Republic of China to be a country described
in section 701(a)(1) of such Act until the President determines that the
repression and reprisals against persons in connection with the prodemocracy
demonstrations have ended.

f3754febb93c2f12386a6db5efa204014d15ac21cccd811afa37c53e157ed9e6

It is the sense of the Congress that--
(1) the Secretary of the Treasury should encourage the multilateral
development banks to increase their efforts to support, through their
lending, the effective implementation of national family planning programs,
exclusive of the abortion option, in borrowing countries; and
(2) the Chairman of the National Advisory Council on International Monetary
and Financial Policies should report annually to the Congress on United
States advocacy in the multilateral development banks on the subject of
family planning and population policy.

d70c9b660f1875bdd5e1b07359260d35ce459a95db75ff62cc411d5cddc5cfa8

Except as otherwise provided in this Act, this Act and the amendments made
by this Act shall take effect on the date of the enactment of this Act.
Passed the House of Representatives October 18, 1989.
Attest:
DONNALD K. ANDERSON,
Clerk.
HR 2494 CDS----2
HR 2494 CDS----3
HR 2494 CDS----4
HR 2494 CDS----5

fae26ff3bdac0ecf3b95ef7f9e318f2ddc8239bf57a20c5c1618a5673baf70f8

International Development and Finance Act of 1989

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

TITLE V

TITLE VI

TITLE V

TITLE VII

Want the full experience?