Union Calendar No. 230

103D CONGRESS

1ST SESSION H. R. 3063

[Report No. 103–411]

A BILL

To authorize United States participation in the reClub, and for other purposes. through the multilateral approach of the Paris the poorest, most heavily indebted countries authorize the provision of special debt relief for tribution to the Global Environment Facility, to ment Bank, to authorize a United States con- Development Association and the Asian Develop- plenishment of the resources of the International

NOVEMBER 22, 1993

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 230

103D CONGRESS

1ST SESSION H. R. 3063

[Report No. 103–411]

To authorize United States participation in the replenishment of the resources

of the International Development Association and the Asian Development

Bank, to authorize a United States contribution to the Global Environment Facility, to authorize the provision of special debt relief for the

poorest, most heavily indebted countries through the multilateral approach of the Paris Club, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 14, 1993

Mr. FRANK of Massachusetts introduced the following bill; which was referred

to the Committee on Banking, Finance and Urban Affairs

NOVEMBER 22, 1993

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To authorize United States participation in the replenishment of the resources of the International Development

Association and the Asian Development Bank, to authorize a United States contribution to the Global Environment Facility, to authorize the provision of special debt

relief for the poorest, most heavily indebted countries
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through the multilateral approach of the Paris Club,

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 and Debt Relief Act of 1993’’.

6 TITLE I—INTERNATIONAL

7 DEVELOPMENT ASSOCIATION

8 SEC. 101. TENTH REPLENISHMENT.

9 The International Development Association Act (22

10 U.S.C. 284–284s) is amended by adding at the end the

11 following:

12 ‘‘SEC. 22. TENTH REPLENISHMENT.

13 ‘‘(a) AUTHORITY TO AGREE TO REPLENISHMENT

14 RESOLUTION.—The United States Governor may, on be15 half of the United States, agree to the resolution of the

16 Association entitled ‘Additions to IDA Resources: Tenth

17 Replenishment’.

18 ‘‘(b) CONTRIBUTION AUTHORITY.—The United

19 States Governor may, on behalf of the United States, con20 tribute funds to the Association to pay 2 annual install21 ments of the subscription and contribution of the United

22 States in accordance with the resolution specified in sub23 section (a), subject to obtaining the necessary appropria24 tions.
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1 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO2 PRIATIONS.—In order to pay for the United States con3 tribution authorized by subsection (b), there are author4 ized to be appropriated for payment by the Secretary of

5 the Treasury $2,500,000,000, without fiscal year limita6 tion.’’.

7 SEC. 102. ADVOCACY OF CERTAIN POLICIES.

8 (a) IN GENERAL.—Title XVI of the International Fi9 nancial Institutions Act (22 U.S.C. 262p–262p–5) is

10 amended by redesignating section 1620 as section 1621

11 and by inserting after section 1619 the following:

12 ‘‘SEC. 1620. ADVOCACY OF CERTAIN POLICIES.

13 ‘‘The Secretary of the Treasury shall instruct the

14 United States Executive Directors of the International

15 Bank for Reconstruction and Development and the Inter16 national Development Association to use the voices and

17 votes of the Executive Directors to encourage vigorously

18 their respective institutions to—

19 ‘‘(1) develop new methodologies and indicators

20 to evaluate adequately the effectiveness of the

21 projects and programs of the respective institution

22 in improving, on a sustainable basis, the standard of

23 living of the poorest segments of the populations of

24 the borrowing countries, including methodologies
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1 and indicators to evaluate the impact of the Pro2 gram of Targeted Interventions (PTI);

3 ‘‘(2) increase the amount of resources of the re4 spective institution devoted to the projects and pro5 grams identified as most effective by the methodolo6 gies and indicators referred to in paragraph (1), and

7 as part of this effort, expand significantly the per8 centage of International Development Association in9 vestment lending included in the Program of Tar10 geted Interventions;

11 ‘‘(3) include affected populations, local govern12 ments, and nongovernmental organizations in all

13 phases of the project cycle, from project identifica14 tion to post-project evaluation;

15 ‘‘(4) include the economic empowerment of

16 women as a factor in evaluating the projects and

17 programs of the respective institution;

18 ‘‘(5) encourage borrowing countries to redirect

19 military expenditures to fund investments in human

20 capital, including measures that promote education,

21 training, and health;

22 ‘‘(6) evaluate adequately, through environ23 mental impact assessments, the effect on the envi24 ronment and nonrenewable resource base of recipi25 ents’ economic growth strategies and the structural
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1 adjustment and sector lending programs of the re2 spective institution;

3 ‘‘(7) maintain or expand debt relief programs;

4 and

5 ‘‘(8) promote good governance and the rule of

6 law in borrowing countries, by promoting fair and

7 workable laws that are—

8 ‘‘(A) necessary for economic development,

9 private sector development, and human rights;

10 ‘‘(B) fully communicated to the public; and

11 ‘‘(C) administered by an independent and

12 well-trained judiciary.’’.

13 (b) REPORTS TO THE CONGRESS.—Not later than

14 September 30, 1994, and not later than September 30,

15 1995, the Secretary of the Treasury shall submit to the

16 Committee on Banking, Finance and Urban Affairs of the

17 House of Representatives and the Committee on Foreign

18 Relations of the Senate reports on the efforts made pursu19 ant to section 1620 of the International Financial Institu20 tions Act, and the results of such efforts.

21 SEC. 103. USE OF LOANS FOR MILITARY DEMOBILIZATION.

22 Title XVI of the International Financial Institutions

23 Act (22 U.S.C. 262p–262p–5), as amended by section 102

24 of this Act, is amended by redesignating section 1621 as
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1 section 1622 and by inserting after section 1620 the fol2 lowing:

3 ‘‘SEC. 1621. USE OF LOANS FOR MILITARY DEMOBILIZA4 TION.

5 ‘‘The Secretary of the Treasury shall instruct the

6 United States Executive Director of the International De7 velopment Association to use the voice and vote of the Ex8 ecutive Director to encourage the Association to emphasize

9 the importance of facilitating the demobilization of mili10 tary forces.’’.

11 TITLE II—ASIAN DEVELOPMENT

12 FUND

13 SEC. 201. FIFTH REPLENISHMENT.

14 The Asian Development Bank Act (22 U.S.C. 285–

15 285aa) is amended by adding at the end the following:

16 ‘‘SEC. 31. FIFTH REPLENISHMENT.

17 ‘‘(a) AUTHORITY TO AGREE TO REPLENISHMENT

18 RESOLUTION.—The United States Governor may, on be19 half of the United States, agree to the resolution of the

20 Bank entitled ‘Fifth Replenishment of the Asian Develop21 ment Fund and Second Regularized Replenishment of the

22 Technical Assistance Special Fund’.

23 ‘‘(b) CONTRIBUTION AUTHORITY.—The United

24 States Governor may, on behalf of the United States, con25 tribute funds to the Asian Development Fund, a special
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1 fund of the Bank, for the subscription and contribution

2 of the United States in accordance with the resolution

3 specified in subsection (a), subject to obtaining the nec4 essary appropriations.

5 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO6 PRIATIONS.—In order to pay for the United States con7 tribution authorized by subsection (b), there are author8 ized to be appropriated for payment by the Secretary of

9 the Treasury $680,000,000 without fiscal year limita10 tion.’’.

11 TITLE III—GLOBAL

12 ENVIRONMENT FACILITY

13 SEC. 301. GLOBAL ENVIRONMENT FACILITY.

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

15 286mm) is amended by adding at the end the following:

16 ‘‘SEC. 61. GLOBAL ENVIRONMENT FACILITY.

17 ‘‘(a) CONTRIBUTION AUTHORIZED.—The Secretary

18 of the Treasury may contribute to the Global Environment

19 Facility $30,810,000, subject to obtaining the necessary

20 appropriations.

21 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO22 PRIATIONS.—In order to pay for the United States con23 tribution provided for in subsection (a), there are author24 ized to be appropriated for payment by the Secretary of

25 the Treasury, $30,810,000 without fiscal year limitation,
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1 if, not later than September 30, 1994, the Secretary of

2 the Treasury has certified that—

3 ‘‘(1) the Facility has established clear proce4 dures ensuring public availability of documentary in5 formation on all Facility projects and associated

6 projects of the Facility implementing agencies;

7 ‘‘(2) the Facility has established clear proce8 dures ensuring that affected peoples in recipient

9 countries are consulted on all aspects of identifica10 tion, preparation, and implementation of Facility

11 projects; and

12 ‘‘(3) the Facility governance process will pro13 vide for contributor country oversight of individual

14 projects in the work program, and specific provisions

15 will be established for the participation of non16 governmental organizations in all phases of the

17 project cycle, including identification, appraisal, im18 plementation, and evaluation.’’.

19 TITLE IV—REGIONAL MULTILAT20 ERAL DEVELOPMENT BANKS

21 SEC. 401. ADVOCACY OF CERTAIN POLICIES.

22 (a) IN GENERAL.—Title XVI of the International Fi23 nancial Institutions Act (22 U.S.C. 262p–262p–5), as

24 amended by sections 102 and 103 of this Act, is amended
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1 by redesignating section 1622 as section 1623 and by in2 serting after section 1621 the following:

3 ‘‘SEC. 1622. ADVOCACY OF CERTAIN POLICIES.

4 ‘‘The Secretary of the Treasury shall instruct the

5 United States Executive Directors of each regional multi6 lateral development bank and of the European Bank for

7 Reconstruction and Development to use their voices and

8 votes to encourage vigorously their respective institutions

9 to—

10 ‘‘(1) develop new methodologies to evaluate ade11 quately the effectiveness of projects and programs of

12 the respective institution in improving, on a sustain13 able basis, the standard of living of the poorest seg14 ments of the populations of the borrowing countries,

15 and increase the amount of resources of the respec16 tive institution devoted to the projects and programs

17 identified as most effective;

18 ‘‘(2) include affected populations, local govern19 ments, and nongovernmental organizations in all

20 phases of the project cycle, from project identifica21 tion to post-project evaluation;

22 ‘‘(3) include the economic empowerment of

23 women as a factor in evaluating projects and pro24 grams of the respective institution;
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1 ‘‘(4) encourage borrowing countries to redirect

2 military expenditures to fund investments in human

3 capital, including measures that promote education,

4 training, and health;

5 ‘‘(5) evaluate adequately, through environ6 mental impact assessments, the effect on the envi7 ronment and nonrenewable resource base of recipi8 ents’ economic growth strategies and structural ad9 justment and sector lending programs of the respec10 tive institution; and

11 ‘‘(6) support the development of the private sec12 tor of borrowing countries.’’.

13 (b) REPORTS TO THE CONGRESS.—Not later than

14 September 30, 1994, and not later than September 30,

15 1995, the Secretary of the Treasury shall submit to the

16 Committee on Banking, Finance and Urban Affairs of the

17 House of Representatives and the Committee on Foreign

18 Relations of the Senate reports on the efforts made pursu19 ant to section 1622 of the International Financial Institu20 tions Act, and the results of such efforts.

21 SEC. 402. OPPOSITION TO LOANS FOR VIETNAM.

22 Title XVI of the International Financial Institutions

23 Act (22 U.S.C. 262p–262p–5), as amended by sections

24 102, 103, and 401 of this Act, is amended by redesignat-
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1 ing section 1623 as section 1624 and by inserting after

2 section 1622 the following:

3 ‘‘SEC. 1623. OPPOSITION TO LOANS FOR VIETNAM.

4 ‘‘The Secretary of the Treasury shall instruct the

5 United States Executive Directors of the International

6 Development Association, the International Bank for Re7 construction and Development, the Asian Development

8 Bank, and the Asian Development Fund to use the voices

9 and votes of the Executive Directors, respectively, to op10 pose any loan to Vietnam except for basic human needs,

11 until the President certifies to the Congress that accept12 able progress has been made toward the fullest possible

13 accounting of all Americans still prisoner, missing, and

14 unaccounted for in Southeast Asia, through, inter alia, ac15 cess to—

16 ‘‘(1) all pertinent records of Group 875 of the

17 General Political Directorate;

18 ‘‘(2) all pertinent records of Group 559;

19 ‘‘(3) all photographs and negatives relating to

20 such Americans;

21 ‘‘(4) all grave registrations relating to such

22 Americans;

23 ‘‘(5) all documents indicating that Vietnam

24 knew of any American remains;
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1 ‘‘(6) any supporting documents that confirm or

2 deny the 1205 Russian document; and

3 ‘‘(7) any other remaining archival information

4 relating to such Americans.’’.

5 TITLE V—SPECIAL DEBT RELIEF

6 SEC. 501. SPECIAL DEBT RELIEF FOR THE POOREST, MOST

7 HEAVILY INDEBTED COUNTRIES.

8 (a) DEBT REDUCTION AUTHORITY.—The President

9 may reduce amounts of principal and interest owed by any

10 eligible country to the Export-Import Bank of the United

11 States as a result of loans or guarantees made under the

12 Export-Import Bank Act of 1945.

13 (b) LIMITATIONS.—

14 (1) TYPES OF DEBT REDUCTION.—The author15 ity provided by subsection (a) may be exercised only

16 to implement multilateral agreements to reduce the

17 burden of official bilateral debt as set forth in the

18 minutes of the so-called ‘‘Paris Club’’ (also known

19 as ‘‘Paris Club Agreed Minutes’’).

20 (2) ELIGIBLE COUNTRIES.—

21 (A) DEFINITION.—As used in subsection

22 (a), the term ‘‘eligible country’’ means any

23 country that—

24 (i) has excessively burdensome exter25 nal debt;
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1 (ii) is eligible to borrow from the

2 International Development Association;

3 and

4 (iii) is not eligible to borrow from the

5 International Bank for Reconstruction and

6 Development.

7 (B) DETERMINATIONS.—Subject to sub8 paragraph (A), the President may determine

9 whether a country is an eligible country for

10 purposes of subsection (a).

11 (C) AUTHORITY TO EXCLUDE COUNTRIES

12 WITH UNACCEPTABLE HUMAN RIGHTS RECORDS

13 OR EXCESSIVE MILITARY EXPENDITURES.—

14 Notwithstanding subparagraphs (A) and (B), a

15 country shall not be an eligible country for pur16 poses of subsection (a) if, in the sole discretion

17 of the President, the President determines

18 that—

19 (i) the human rights record of the

20 country is unacceptable; or

21 (ii) the level of military expenditures

22 by the country is excessive.

23 (3) APPROPRIATIONS.—The authority provided

24 by subsection (a) may be exercised only in such
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1 amounts or to such extent as is provided in advance

2 in appropriations Acts.

3 (c) LIMITATIONS ON AUTHORIZATION OF APPRO4 PRIATIONS.—For debt reduction pursuant to this section,

5 there are authorized to be appropriated to the President

6 $48,300,000, without fiscal year limitation, except that

7 not more than $11,500,000 may be so appropriated for

8 fiscal year 1994.

9 (d) The Congress encourages the President to use the

10 amounts appropriated pursuant to subsection (c) to reduce

11 the bilateral debt of any eligible country in accordance

12 with the so-called ‘‘Trinidad Terms’’.

13 TITLE VI—MEASURES OF

14 MILITARY SPENDING

15 SEC. 601. JOINT DEVELOPMENT OF MEASURES OF MILI16 TARY SPENDING.

17 Section 60 of the Bretton Woods Agreements Act (22

18 U.S.C. 286mm) is amended—

19 (1) in subsection (a)—

20 (A) in the heading, by striking ‘‘BY THE

21 FUND’’;

22 (B) in paragraph (1)—

23 (i) by striking ‘‘Director of the Fund’’

24 and inserting ‘‘Directors of the Fund and

25 of the Bank’’;
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1 (ii) by striking ‘‘urge the Fund, in

2 consultation with the Bank, to continue to

3 develop’’ and inserting ‘‘urge the Fund and

4 the Bank to cooperate and coordinate in

5 the continued development of’’; and

6 (iii) by inserting ‘‘, and in the report7 ing of such levels’’ before the period; and

8 (C) in paragraph (2), by inserting ‘‘and

9 the Bank’’ after ‘‘Fund’’; and

10 (2) in subsection (b)—

11 (A) by striking ‘‘BY FUND’’;

12 (B) by striking ‘‘Director of the Fund’’

13 and inserting ‘‘Directors of the Fund and of the

14 Bank’’;

15 (C) by striking ‘‘urge the Fund’’ and in16 serting ‘‘urge the Fund and the Bank’’;

17 (D) by striking ‘‘Board of the Fund’’ and

18 inserting ‘‘Boards of the Fund and of the

19 Bank, respectively,’’; and

20 (E) by striking ‘‘estimate by the Fund’’

21 and inserting ‘‘joint estimate of the Fund and

22 the Bank’’.