I

103D CONGRESS

2D SESSION H. R. 4587

To authorize United States contributions to the Inter-American Development

Bank, the Fund for Special Operations, the African Development Fund,

the Global Environment Facility, and the Enhanced Structural Adjustment Facility of the International Monetary Fund, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 16, 1994

Mr. FRANK of Massachusetts (for himself and Mr. BEREUTER) introduced the

following bill; which was referred to the Committee on Banking, Finance

and Urban Affairs

A BILL

To authorize United States contributions to the Inter-American Development Bank, the Fund for Special Operations, the African Development Fund, the Global Environment Facility, and the Enhanced Structural Adjustment Facility of the International Monetary Fund, and

for other purposes.

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 ‘‘International Develop5 ment Act of 1994’’.
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1 SEC. 2. GLOBAL ENVIRONMENT FACILITY.

2 The Bretton Woods Agreements Act (22 U.S.C. 286–

3 286mm) is amended by adding at the end the following:

4 ‘‘SEC. 61. CONTRIBUTION TO GLOBAL ENVIRONMENT

5 FACILITY.

6 ‘‘(a) CONTRIBUTION AUTHORITY.—

7 ‘‘(1) IN GENERAL.—The United States Gov8 ernor of the Bank may contribute $400,000,000 on

9 behalf of the United States to the Global Environ10 ment Facility.

11 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au12 thority provided by paragraph (1) shall be effective

13 only to such extent and in such amounts as are pro14 vided in advance in appropriations Acts.

15 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO16 PRIATIONS.—For the contribution authorized by sub17 section (a), there are authorized to be appropriated to the

18 Secretary of the Treasury not more than $400,000,000,

19 without fiscal year limitation.’’.

20 SEC. 3. AFRICAN DEVELOPMENT FUND.

21 (a) IN GENERAL.—The African Development Fund

22 Act (22 U.S.C. 290g–290g–15) is amended by adding at

23 the end the following:

24 ‘‘SEC. 217. SEVENTH REPLENISHMENT.

25 ‘‘(a) CONTRIBUTION AUTHORITY.—
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1 ‘‘(1) IN GENERAL.—The United States Gov2 ernor of the Fund may contribute $315,000,000 to

3 the seventh replenishment of the resources of the

4 Fund.

5 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au6 thority provided by paragraph (1) shall be effective

7 only to such extent and in such amounts as are pro8 vided in advance in appropriations Acts.

9 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO10 PRIATIONS.—For the contribution authorized by sub11 section (a), there are authorized to be appropriated to the

12 Secretary of the Treasury not more than $315,000,000,

13 without fiscal year limitation.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall take effect on the later of—

16 (1) October 1, 1994; or

17 (2) the date the Secretary of the Treasury noti18 fies the Congress that the negotiations of the sev19 enth replenishment of the resources of the African

20 Development Fund have been concluded successfully.

21 SEC. 4. INTER-AMERICAN DEVELOPMENT BANK AND FUND

22 FOR SPECIAL OPERATIONS.

23 The Inter-American Development Bank Act (22

24 U.S.C. 283–283z–9) is amended by adding at the end the

25 following:
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1 ‘‘SEC. 38. CAPITAL INCREASE; INCREASE IN RESOURCES OF

2 FUND FOR SPECIAL OPERATIONS.

3 ‘‘(a) AUTHORITY TO VOTE FOR INCREASE IN AU4 THORIZED CAPITAL STOCK OF BANK AND INCREASE IN

5 RESOURCES OF FUND FOR SPECIAL OPERATIONS.—The

6 United States Governor of the Bank may vote for resolu7 tions which—

8 ‘‘(1) were transmitted by the Board of Execu9 tive Directors to the Governors of the Bank by reso10 lution of lllll;

11 ‘‘(2) are pending before the Board of Governors

12 of the Bank; and

13 ‘‘(3) provide for—

14 ‘‘(A) an increase in the authorized capital

15 stock of the Bank and subscriptions to the

16 Bank; and

17 ‘‘(B) an increase in the resources of the

18 Fund for Special Operations and contributions

19 to the Fund.

20 ‘‘(b) SUBSCRIPTION AND CONTRIBUTION AUTHOR21 ITY.—

22 ‘‘(1) IN GENERAL.—On adoption of the resolu23 tions described in subsection (a), the United States

24 Governor of the Bank may, on behalf of the United

25 States—
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1 ‘‘(A) subscribe to 760,644 shares of the in2 crease in the authorized capital stock of the

3 Bank, 12,738 of which shall be shares of paid4 in capital stock and 747,906 of which shall be

5 shares of callable capital stock; and

6 ‘‘(B) contribute $82,304,000 to the Fund

7 for Special Operations.

8 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au9 thority provided by paragraph (1) shall be effective

10 only to such extent and in such amounts as are pro11 vided in advance in appropriations Acts.

12 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO13 PRIATIONS.—

14 ‘‘(1) SUBSCRIPTION.—For the subscription au15 thorized by subsection (b)(1)(A), there are author16 ized to be appropriated to the Secretary of the

17 Treasury, without fiscal year limitation—

18 ‘‘(A) not more than $76,832,001 for

19 shares of paid-in capital stock of the Bank; and

20 ‘‘(B) not more than $4,511,156,729 for

21 shares of callable capital stock of the Bank.

22 ‘‘(2) CONTRIBUTION.—For the contribution au23 thorized by subsection (b)(1)(B), there are author24 ized to be appropriated to the Secretary of the
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1 Treasury not more than $82,304,000, without fiscal

2 year limitation.

3 ‘‘(d) AUTHORITY TO VOTE FOR CERTAIN RESOLU4 TIONS.—The United States Governor of the Bank may

5 vote for a proposed resolution of the Board of Governors

6 entitled ‘Amendments to the Agreement Establishing the

7 Inter-American Development Bank, the Regulations of the

8 Board of Governors, the General Rules Governing Admis9 sion of Nonregional Countries to Membership in the Bank,

10 and the Regulations for the Election of Executive Direc11 tors’, which was submitted to the Board of Governors pur12 suant to a resolution of the Board of Executive Directors

13 approved on lllll.’’.

14 SEC. 5. ENHANCED STRUCTURAL ADJUSTMENT FACILITY

15 OF THE INTERNATIONAL MONETARY FUND.

16 The Bretton Woods Agreements Act (22 U.S.C. 286–

17 286mm), as amended by section 2 of this Act, is amended

18 by adding at the end the following:

19 ‘‘SEC. 62. CONTRIBUTION TO THE INTEREST SUBSIDY AC20 COUNT OF THE ENHANCED STRUCTURAL AD21 JUSTMENT FACILITY OF THE INTER22 NATIONAL MONETARY FUND.

23 ‘‘(a) CONTRIBUTION AUTHORITY.—

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

25 the United States Governor of the Fund may make
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1 contributions on behalf of the United States in ful2 fillment of the United States commitment to contrib3 ute to the Interest Subsidy Account of the Enhanced

4 Structural Adjustment Facility of the Fund.

5 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au6 thority provided by paragraph (1) shall be effective

7 only to such extent and in such amounts as are pro8 vided in advance in appropriations Acts.

9 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO10 PRIATIONS.—For the contribution authorized by sub11 section (a), there are authorized to be appropriated to the

12 Secretary of the Treasury not more than $25,000,000,

13 without fiscal year limitation.’’.

14 SEC. 6. MILITARY SPENDING BY RECIPIENT COUNTRIES;

15 MILITARY INVOLVEMENT IN THE ECONOMIES

16 OF RECIPIENT COUNTRIES.

17 Title XV of the International Financial Institutions

18 Act (22 U.S.C. 262o) is amended by adding at the end

19 the following:

20 ‘‘SEC. 1502. MILITARY SPENDING BY RECIPIENT COUN21 TRIES; MILITARY INVOLVEMENT IN THE

22 ECONOMIES OF RECIPIENT COUNTRIES.

23 ‘‘(a) CONSIDERATION OF COMMITMENT TO ACHIEV24 ING CERTAIN GOALS.—The Secretary of the Treasury

25 shall instruct the United States Executive Directors of the
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1 international financial institutions (as defined in section

2 1701(c)(2)) to promote growth in the international econ3 omy by taking into account, when considering whether to

4 support or oppose loan proposals at these institutions, the

5 extent to which the recipient government has dem6 onstrated a commitment to achieving the following goals:

7 ‘‘(1) To provide accurate and complete data on

8 the annual expenditures and receipts of the armed

9 forces.

10 ‘‘(2) To end excessive military involvement in

11 the economy.

12 ‘‘(3) To make substantial reductions in exces13 sive military spending and forces.

14 ‘‘(4) To end corruption involoving members of

15 the armed forces.

16 The Secretary shall submit to the Committees on Bank17 ing, Finance and Urban Affairs and on Appropriations of

18 the House of Representatives and the Committees on For19 eign Relations and on Appropriations of the Senate a re20 port on the steps taken to determine appropriate defini21 tions of the goals set forth in subsection (a).

22 ‘‘(b) STEPS TO ACHIEVE GOALS REQUIRED.—The

23 Secretary of the Treasury shall instruct the United States

24 Executive Directors of the international financial institu-
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1 tions (as so defined) to promote a policy at each institu2 tion under which—

3 ‘‘(1) the staff will include in its supporting doc4 uments for each proposed loan a report on military

5 expenditures and an assessment of the steps taken

6 by the recipient government to achieve the goals set

7 forth in subsection (a);

8 ‘‘(2) the governing body will not approve pro9 posed loans where insufficient effort has been made

10 to achieve such goals, except in cases where the pro11 posed loans are specifically designed to meet the

12 basic human needs of the poor; and

13 ‘‘(3) a report on military expenditures and an

14 assessment of the steps taken by the recipient gov15 ernment to achieve the goals set forth in subsection

16 (a) will be included in regular policy consultations

17 with developing countries.

18 ‘‘(c) CONDITIONAL OPPOSITION TO LOANS TO INDO19 NESIA.—In furtherance of the policy established by sub20 section (a), the Secretary of the Treasury, in consultation

21 with the Secretary of State, shall, not later than May 1,

22 1995, submit to the Committees on Banking, Finance and

23 Urban Affairs and on Appropriations of the House of Rep24 resentatives and the Committees on Foreign Relations and

25 on Appropriations of the Senate a report on the perform-
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1 ance of the Government of Indonesia in achieving or im2 plementing a credible plan to achieve the goals set forth

3 in subsection (a).’’.

4 SEC. 7. RESPECT FOR INDIGENOUS PEOPLES.

5 Title XVI of the International Financial Institutions

6 Act (22 U.S.C. 262p–262p–5) is amended by redesignat7 ing section 1620 as section 1621 and by inserting after

8 section 1619 the following:

9 ‘‘SEC. 1620. RESPECT FOR INDIGENOUS PEOPLES.

10 ‘‘The Secretary of the Treasury shall direct the Unit11 ed States Executive Directors of the international finan12 cial institutions (as defined in section 1701(c)(2)) and the

13 United States representative to the council of the Global

14 Environment Facility administered by the International

15 Bank for Reconstruction and Development to use the voice

16 and vote of the United States to bring about the creation

17 and full implementation of policies designed to promote

18 respect for and full protection of the territorial rights, tra19 ditional economies, cultural integrity, traditional knowl20 edge, and human rights of indigenous peoples.’’.

21 SEC. 8. FOCUS ON LOW-INCOME AREAS OF LATIN AMERICA

22 AND THE CARRIBEAN.

23 The Inter-American Development Bank Act (22

24 U.S.C. 283–283z–9) is amended by adding at the end the

25 following:
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1 ‘‘SEC. 38. FOCUS ON LOW-INCOME AREAS OF LATIN AMER2 ICA AND THE CARRIBEAN.

3 ‘‘The Secretary of the Treasury shall direct the Unit4 ed States Executive Director of the Bank to use the voice

5 and vote of the United States to support an increased

6 focus on the poorest countries in Latin America and the

7 Carribean, and on poorer areas of better off countries, and

8 to support porgrams conducted by the Multilateral Invest9 ment Fund, particularly in targeting low-income countries

10 and populations, working with nongovernmental organiza11 tions and training and assisting former combatants from

12 civil conflicts in Latin America.’’.

13 SEC. 9. GUARANTEE OF WORKER RIGHTS.

14 Title XVI of the International Financial Institutions

15 Act (22 U.S.C. 262p–262p–5), as amended by section 7

16 of this Act, is amended by redesignating section 1621 as

17 section 1622 and by inserting after section 1620 the fol18 lowing:

19 ‘‘SEC. 1621. GUARANTEE OF WORKER RIGHTS.

20 ‘‘The Secretary of the Treasury shall direct the Unit21 ed States Executive Director at each international finan22 cial institution (as defined in section 1701(c)(2) of this

23 Act) to use the voice and vote of the United States to

24 urge the respective institution to adopt policies to encour25 age borrowing countries to guarantee internationally rec-
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1 ognized worker rights (within the meaning of section

2 502(a)(4) of the Trade Act of 1974).’’.

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