International Anti-Corruption Act of 1997

Summary: International Anti-Corruption Act of 1997 - Directs the President to certify annually to certain congressional committees as to whether each country receiving foreign assistance under the Foreign Assistance Act of 1961 is:  (1) conducive to United States business; (2) not conducive to United States business; or (3) hostile to United States business.  Prescribes foreign assistance limitations for countries hostile or not conducive to United States business. 
Requires a report to accompany such certification describing the extent to which each such country is making progress in:  (1) implementing comprehensive economic reform, based on market principles, private ownership, and other specified economic indicators; (2) eliminating corrupt trade practices by private persons and government officials; and (3) moving toward integration into the world economy. 
Instructs the Secretary of Commerce to make a toll-free telephone number available for progress reports on countries receiving foreign assistance and implementing specified economic indicators.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Anti-Corruption Act of 
1997''.

SEC. 2. LIMITATIONS ON FOREIGN ASSISTANCE.

    (a) Report and Certification.--
            (1) In general.--Not later than March 1 of each year, the 
        President shall submit to the appropriate committees a 
        certification described in paragraph (2) and a report for each 
        country that received foreign assistance under part I of the 
        Foreign Assistance Act of 1961 during the fiscal year. The 
        report shall describe the extent to which each such country is 
        making progress with respect to the following economic 
        indicators:
                    (A) Implementation of comprehensive economic 
                reform, based on market principles, private ownership, 
                equitable treatment of foreign private investment, 
                adoption of a legal and policy framework necessary for 
                such reform, protection of intellectual property 
                rights, and respect for contracts.
                    (B) Elimination of corrupt trade practices by 
                private persons and government officials.
                    (C) Moving toward integration into the world 
                economy.
            (2) Certification.--The certification described in this 
        paragraph means a certification as to whether, based on the 
        economic indicators described in subparagraphs (A) through (C) 
        of paragraph (1), each country is--
                    (A) conducive to United States business;
                    (B) not conducive to United States business; or
                    (C) hostile to United States business.
    (b) Limitations on Assistance.--
            (1) Countries hostile to united states business.--
                    (A) General limitation.--Beginning on the date the 
                certification described in subsection (a) is 
                submitted--
                            (i) none of the funds made available for 
                        assistance under part I of the Foreign 
                        Assistance Act of 1961 (including unobligated 
                        balances of prior appropriations) may be made 
                        available for the government of a country that 
                        is certified as hostile to United States 
                        business pursuant to such subsection (a); and
                            (ii) the Secretary of the Treasury shall 
                        instruct the United States Executive Director 
                        of each multilateral development bank to vote 
                        against any loan or other utilization of the 
                        funds of such institution to or by any country 
                        with respect to which a certification described 
                        in clause (i) has been made.
                    (B) Duration of limitations.--Except as provided in 
                subsection (c), the limitations described in clauses 
                (i) and (ii) of subparagraph (A) shall apply with 
                respect to a country that is certified as hostile to 
                United States business pursuant to subsection (a) until 
                the President certifies to the appropriate committees 
                that the country is making significant progress in 
                implementing the economic indicators described in 
                subsection (a)(1) and is no longer hostile to United 
                States business.
            (2) Countries not conducive to united states business.--
                    (A) Probationary period.--A country that is 
                certified as not conducive to United States business 
                pursuant to subsection (a), shall be considered to be 
                on probation beginning on the date of such 
                certification.
                    (B) Required improvement.--Unless the President 
                certifies to the appropriate committees that the 
                country is making significant progress in implementing 
                the economic indicators described in subsection (a) and 
                is committed to being conducive to United States 
                business, beginning on the first day of the fiscal year 
                following the fiscal year in which a country is 
                certified as not conducive to United States business 
                pursuant to subsection (a)(2)--
                            (i) none of the funds made available for 
                        assistance under part I of the Foreign 
                        Assistance Act of 1961 (including unobligated 
                        balances of prior appropriations) may be made 
                        available for the government of such country; 
                        and
                            (ii) the Secretary of the Treasury shall 
                        instruct the United States Executive Director 
                        of each multilateral development bank to vote 
                        against any loan or other utilization of the 
                        funds of such institution to or by any country 
                        with respect to which a certification described 
                        in subparagraph (A) has been made.
                    (C) Duration of limitations.--Except as provided in 
                subsection (c), the limitations described in clauses 
                (i) and (ii) of subparagraph (B) shall apply with 
                respect to a country that is certified as not conducive 
                to United States business pursuant to subsection (a) 
                until the President certifies to the appropriate 
                committees that the country is making significant 
                progress in implementing the economic indicators 
                described in subsection (a)(1) and is conducive to 
                United States business.
    (c) Exceptions.--
            (1) National security interest.--Subsection (b) shall not 
        apply with respect to a country described in subsection (b) (1) 
        or (2) if the President determines with respect to such country 
        that making such funds available is important to the national 
        security interest of the United States. Any such determination 
        shall cease to be effective 6 months after being made unless 
        the President determines that its continuation is important to 
        the national security interest of the United States.
            (2) Other exceptions.--Subsection (b) shall not apply with 
        respect to--
                    (A) assistance to meet urgent humanitarian needs 
                (including providing food, medicine, disaster, and 
                refugee relief);
                    (B) democratic political reform and rule of law 
                activities;
                    (C) the creation of private sector and 
                nongovernmental organizations that are independent of 
                government control; and
                    (D) the development of a free market economic 
                system.

SEC. 3. TOLL-FREE NUMBER.

    The Secretary of Commerce shall make available a toll-free 
telephone number for reporting by members of the public and United 
States businesses on the progress that countries receiving foreign 
assistance are making in implementing the economic indicators described 
in section 2(a)(1). The information obtained from the toll-free 
telephone reporting shall be included in the report required by section 
2(a).

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Appropriate committees.--The term ``appropriate 
        committees'' means the Committee on International Relations of 
        the House of Representatives and the Committee on Foreign 
        Relations of the Senate.
            (2) Multilateral development bank.--The term ``multilateral 
        development bank'' means the International Bank for 
        Reconstruction and Development, the International Development 
        Association, and the European Bank for Reconstruction and 
        Development.