I

106TH CONGRESS

2D SESSION H. R. 5561

To require foreign countries to meet certain requirements relating to political

freedom, transparency, accountability, and good governance in order to

be eligible to receive cancellation or reduction of debt owed to the United

States.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 25, 2000

Mr. WOLF introduced the following bill; which was referred to the Committee

on International Relations, and in addition to the Committee on Banking

and Financial Services, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To require foreign countries to meet certain requirements

relating to political freedom, transparency, accountability,

and good governance in order to be eligible to receive

cancellation or reduction of debt owed to the United

States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Responsible Debt Re5 lief and Democracy Reform Act’’.
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1 SEC. 2. ADDITIONAL REQUIREMENTS FOR CANCELLATION

2 OR REDUCTION OF DEBT OWED TO THE

3 UNITED STATES.

4 The Foreign Assistance Act of 1961 (22 U.S.C. 2151

5 et seq.) is amended by adding at the end the following:

6 ‘‘PART VI—ADDITIONAL REQUIREMENTS FOR

7 CANCELLATION OR REDUCTION OF DEBT

8 OWED TO THE UNITED STATES

9 ‘‘SEC. 901. CANCELLATION OR REDUCTION OF DEBT.

10 ‘‘Beginning on and after the date of the enactment

11 of this part, the President may cancel or reduce amounts

12 owed to the United States (or any agency of the United

13 States) by foreign countries as a result of concessional or

14 nonconcessional loans made, guarantees issued, or credits

15 extended under any other provision of law only if, in addi16 tion to the requirements contained under the applicable

17 provisions of law providing authority for the debt cancella18 tion or reduction, the requirements contained in section

19 902 are satisfied.

20 ‘‘SEC. 902. ADDITIONAL REQUIREMENTS.

21 ‘‘(a) IN GENERAL.—A foreign country shall be eligi22 ble for cancellation or reduction of debt under any other

23 provision of law only if the government of the country—

24 ‘‘(1) ensures freedom of the press;

25 ‘‘(2) ensures freedom of association;
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1 ‘‘(3) has established an independent and non2 discriminatory judiciary;

3 ‘‘(4) provides for the reduction or elimination of

4 corruption relating to public officials, including—

5 ‘‘(A) the promulgation of laws to prohibit

6 bribery of and by public officials, including dis7 closure of assets by such officials upon taking

8 office, periodically while in office, and upon

9 leaving office;

10 ‘‘(B) the establishment of an independent

11 anti-corruption commission—

12 ‘‘(i) to receive and verify the disclo13 sure of assets by public officials in accord14 ance with subparagraph (A); and

15 ‘‘(ii) to investigate allegations or cor16 ruption or misconduct by public officials

17 and to make all findings available to the

18 appropriate administrative or judicial enti19 ties; and

20 ‘‘(C) the establishment of an independent

21 agency—

22 ‘‘(i) to audit the financial activities of

23 public officials and agencies; and
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1 ‘‘(ii) to make all audits under clause

2 (i) available to the appropriate administra3 tive or judicial entities;

4 ‘‘(5) is elected through free and fair elections;

5 ‘‘(6) does not engage in a consistent pattern of

6 gross violations of internationally recognized human

7 rights; and

8 ‘‘(7) does not repeatedly provided support for

9 acts of international terrorism, as determined by the

10 Secretary of State under section 6(j)(1) of the Ex11 port Administration Act of 1979 (50 U.S.C. App.

12 2405(j)(1)) or section 620A(a) of the Foreign As13 sistance Act of 1961 (22 U.S.C. 2371(a)).

14 ‘‘(b) EXCEPTIONS.—The President may waive the ap15 plication of 1 or more of the requirements of subsection

16 (a) with respect to the cancellation or reduction of debt

17 owed to the United States by a foreign country—

18 ‘‘(1) for emergency humanitarian relief pur19 poses;

20 ‘‘(2) if the President determines that it is in the

21 national security interests of the United States to do

22 so; or

23 ‘‘(3) if the President determines that the for24 eign country is making demonstrable progress in

25 meeting the requirements of paragraphs (1) through
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1 (7) of subsection (a) by adopting appropriate legal

2 and other related reforms.

3 ‘‘(c) CONGRESSIONAL NOTIFICATION.—Not later

4 than 7 days prior to the cancellation or reduction of debt

5 in accordance with section 901, the President shall trans6 mit to the Congress a report that contains a justification

7 for the determination by the President that—

8 ‘‘(1) the requirements contained in each of

9 paragraphs (1) through (7) of subsection (a) have

10 been satisfied with respect to the foreign country in11 volved; or

12 ‘‘(2) the requirement of paragraph (1), (2), or

13 (3) of subsection (b) has been satisfied with respect

14 to the foreign country involved.’’.

15 SEC. 3. SENSE OF THE CONGRESS RELATING TO CAN16 CELLATION OR REDUCTION OF MULTILAT17 ERAL DEBT.

18 It is the sense of the Congress that the President

19 should instruct the United States Executive Director at

20 each international financial institution to which the

21 United States is a member to use the voice, vote, and in22 fluence of the United States to urge that the cancellation

23 or reduction of debt owed to the institution by a country

24 may be provided only if the country meets the same re25 quirements applicable to the cancellation or reduction of
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1 amounts owed to the United States under paragraphs (1)

2 through (7) of section 902(b) of the Foreign Assistance

3 Act of 1961 (as added by section 2).

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