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104TH CONGRESS

1ST SESSION H. CON. RES. 27

To express the sense of the Congress that the Secretary of the Treasury

should submit monthly reports to the Committee on Banking, Housing,

and Urban Affairs of the Senate and the Committee on Banking and

Financial Services of the House of Representatives concerning compliance

by the Government of Mexico regarding certain loans, loan guarantees,

and other assistance made by the United States to the Government

of Mexico.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 14, 1995

Mr. KING (for himself, Mr. MCCOLLUM, Mr. BEREUTER, Mr. ROTH, Mr.

BACHUS, Mr. CASTLE, Mr. LAZIO of New York, Mr. SAM JOHNSON of

Texas, Mrs. MYRICK, Mr. CREMEANS, Mr. METCALF, Mr. HEINEMAN,

Mr. FORBES, Mr. LONGLEY, Mr. WELLER, Mr. WATTS of Oklahoma, and

Mr. NEY) submitted the following concurrent resolution; which was referred to the Committee on Banking and Financial Services

CONCURRENT RESOLUTION

To express the sense of the Congress that the Secretary

of the Treasury should submit monthly reports to the

Committee on Banking, Housing, and Urban Affairs of

the Senate and the Committee on Banking and Financial

Services of the House of Representatives concerning compliance by the Government of Mexico regarding certain

loans, loan guarantees, and other assistance made by

the United States to the Government of Mexico.
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•HCON 27 IH

Whereas Mexico is an important neighbor and trading partner of the United States;

Whereas on January 31, 1995, the President announced a

program of assistance to Mexico, that includes swap facilities and securities guarantees in the amount of

$20,000,000,000, using the exchange stabilization fund

established pursuant to section 5302 of title 31, United

States Code, and the Federal Reserve System;

Whereas the program of assistance also involves the participation of the Federal Reserve System, the International

Monetary Fund, the Bank for International Settlements,

the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Bank

of Canada, and several Latin American countries;

Whereas the involvement of the exchange stabilization fund

and the Federal Reserve System means that United

States taxpayer funds will be used in the assistance effort

to Mexico;

Whereas assistance provided by the International Monetary

Fund, the International Bank for Reconstruction and

Development, and the Inter-American Development Bank

may require additional United States contributions of

taxpayer funds to those entities;

Whereas the immediate use of taxpayer funds and the potential requirement for additional future United States contributions of taxpayer funds necessitates congressional

oversight of the disbursement of funds from the exchange

stabilization fund, the Federal Reserve System, and the

International Monetary Fund; and
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•HCON 27 IH

Whereas the efficacy of the assistance to Mexico is contingent

on the pursuit of sound economic policy by the Government of Mexico: Now, therefore, be it

1 Resolved by the House of Representatives (the Senate

2 concurring), That it is the sense of the Congress that—

3 (1) the Secretary of the Treasury should, in

4 conjunction with reports required under section

5 5302 of title 31, United States Code, by the 30th

6 day after the end of each month, submit a detailed

7 report to the Committee on Banking, Housing, and

8 Urban Affairs of the Senate and the Committee on

9 Banking and Financial Services of the House of

10 Representatives describing, with respect to such

11 month—

12 (A) the condition of the Mexican economy;

13 (B) any consultations between the Govern14 ment of Mexico and the Department of the

15 Treasury or the International Monetary Fund;

16 and

17 (C) any funds disbursed from the exchange

18 stabilization fund, including any swap facilities

19 or securities guarantees, pursuant to the ap20 proval of the President issued on January 31,

21 1995;
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•HCON 27 IH

1 (2) each report submitted under paragraph (1)

2 should include, with respect to the month for which

3 the report is submitted—

4 (A) a full description of the activities of

5 the Mexican Central Bank and Mexican ex6 change rate policy, including the reserve posi7 tions of the Mexican Central Bank and data re8 lating to the functioning of Mexican monetary

9 policy;

10 (B) information regarding the implementa11 tion and the extent of wage, price, and credit

12 controls in the Mexican economy;

13 (C) a complete documentation of Mexican

14 tax policy and any proposed changes to such

15 policy;

16 (D) a list of planned or pending Mexican

17 Government regulations affecting the Mexican

18 private sector;

19 (E) any efforts to privatize public sector

20 entities in Mexico; and

21 (F) a full disclosure of all financial trans22 actions, both inside and outside of Mexico, di23 rectly involving funds disbursed from the ex24 change stabilization fund and the International

25 Monetary Fund, including transactions with—
5

•HCON 27 IH

1 (i) individuals;

2 (ii) partnerships;

3 (iii) joint ventures; and

4 (iv) corporations; and

5 (3) the Secretary of the Treasury should con6 tinue to submit reports under paragraph (1) until

7 the Secretary determines that no further risk exists

8 to United States taxpayers of default by the Govern9 ment of Mexico on funds provided from the exchange

10 stabilization fund, the Federal Reserve System, or

11 the International Monetary Fund pursuant to the

12 program of assistance approved by the President on

13 January 31, 1995.

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