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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 384 Reported in Senate (RS)]

                                                        Calendar No. 48

104th CONGRESS

  1st Session

                                 S. 384

_______________________________________________________________________

                                 A BILL

To require a report on United States support for Mexico during its debt 
                    crisis, and for other purposes.

_______________________________________________________________________

               April 4 (legislative day, March 27), 1995

        Reported with an amendment and an amendment to the title

                                                        Calendar No. 48
104th CONGRESS
  1st Session
                                 S. 384

To require a report on United States support for Mexico during its debt 
                    crisis, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            February 10 (legislative day, January 30), 1995

 Mr. Brown (for himself and Mr. Helms) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

               April 4 (legislative day, March 27), 1995

 Reported by Mr. Helms, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To require a report on United States support for Mexico during its debt 
                    crisis, and for other purposes.

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

<DELETED>SECTION 1. REPORT REQUIRED.</DELETED>

<DELETED>    (a) Report.--Not later than March 1, 1995, and every six 
months thereafter, the President shall transmit a report to the 
appropriate congressional committees concerning all United States 
Government loans, credits, guarantees, and short-term and long-term 
currency swaps with Mexico.</DELETED>
<DELETED>    (b) Contents of Report.--The report described in 
subsection (a) shall include the following:</DELETED>
        <DELETED>    (1) A breakdown of all outstanding United States 
        Government loans, credits, and guarantees provided to the 
        Government of Mexico.</DELETED>
        <DELETED>    (2) A detailed list of all Federal Reserve 
        currency swaps designed to support indebtedness of the 
        Government of Mexico, and the cost or benefit to the United 
        States Treasury from each such transaction.</DELETED>
        <DELETED>    (3) A description of any payments by creditors of 
        Mexican petroleum companies into the petroleum finance facility 
        established to ensure repayment of United States loans or 
        guarantees.</DELETED>
        <DELETED>    (4) A description of any disbursement by the 
        United States Government from the petroleum finance 
        facility.</DELETED>
        <DELETED>    (5) Once payments have been diverted from PEMEX to 
        the United States Treasury through the petroleum finance 
        facility, a description of the status of petroleum deliveries 
        to those customers whose payments were diverted.</DELETED>
        <DELETED>    (6) A description of the risk factors used in 
        calculations concerning Mexican repayment of 
        indebtedness.</DELETED>
        <DELETED>    (7) A statement of the progress the Government of 
        Mexico has made in reforming its currency and establishing an 
        independent central bank or currency board.</DELETED>
        <DELETED>    (8) A description of specific actions taken by the 
        Government of Mexico to further privatize the economy of 
        Mexico.</DELETED>

<DELETED>SEC. 2. PRESIDENTIAL CERTIFICATION.</DELETED>

<DELETED>    Notwithstanding any other provision of law, before 
extending any loan, credit, guarantee, or arrangement for a swap of 
currencies to Mexico through any United States Government monetary 
facility, the President shall certify to the appropriate congressional 
committees that--</DELETED>
        <DELETED>    (1) there is no projected cost to the United 
        States from the proposed loan, credit, guarantee, or currency 
        swap;</DELETED>
        <DELETED>    (2) all loans, credits, guarantees, and currency 
        swaps are adequately collateralized to ensure that United 
        States funds will be repaid;</DELETED>
        <DELETED>    (3) the Government of Mexico has undertaken 
        effective efforts to establish an independent central bank or 
        an independent currency control mechanism; and</DELETED>
        <DELETED>    (4) Mexico has in effect a significant economic 
        reform effort.</DELETED>

<DELETED>SEC. 3. DEFINITION.</DELETED>

<DELETED>    As used in this Act, the term ``appropriate congressional 
committees'' means the Committees on Appropriations, Ways and Means, 
and International Relations of the House of Representatives and the 
Committees on Appropriations, Finance, and Foreign Relations of the 
Senate.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mexican Debt Disclosure Act of 
1995''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) Mexico is an important neighbor and trading partner of 
        the United States;
            (2) on January 31, 1995, the President approved a program 
        of assistance to Mexico, in the form of swap facilities and 
        securities guarantees in the amount of $20,000,000,000, using 
        the Exchange Stabilization Fund;
            (3) the program of assistance involves the participation of 
        the Federal Reserve System, the International Monetary Fund, 
        the Bank for International Settlements, the World Bank, the 
        Inter-American Development Bank, the Bank of Canada, and 
        several Latin American countries;
            (4) 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;
            (5) assistance provided by the International Monetary Fund, 
        the World Bank, and the Inter-American Development Bank may 
        require additional United States contributions of taxpayer 
        funds to those entities;
            (6) 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; and
            (7) the efficacy of the assistance to Mexico is contingent 
        on the pursuit of sound economic policy by the Government of 
        Mexico.

SEC. 3. PRESIDENTIAL REPORTS.

    (a) Reporting Requirement.--Not later than June 30, 1995, and every 
six months thereafter, the President shall transmit a report to the 
appropriate congressional committees concerning all United States 
Government guarantees to, and short-term and long-term currency swaps 
with, Mexico.
    (b) Contents of Reports.--Each report described in subsection (a) 
shall contain a description of the following actions taken, or economic 
situations existing, during the preceding six month period or, in the 
case of the initial report, during the period beginning on the date of 
enactment of this Act:
            (1) Changes in wage, price, and credit controls in the 
        Mexican economy.
            (2) Changes in Mexican taxation policy.
            (3) Specific actions taken by the Government of Mexico to 
        further privatize the economy of Mexico.
            (4) Actions taken by the Government of Mexico in the 
        development of regulatory policy that significantly affected 
        the performance of the Mexican economy.
            (5) Consultations concerning the program approved by the 
        President, including advice on economic, monetary, and fiscal 
        policy, held between the Government of Mexico and the 
        Department of the Treasury and the conclusions of any periodic 
        reviews undertaken by the International Monetary Fund pursuant 
        to the Fund's loan agreements with Mexico.
            (6) All outstanding United States Government loans, 
        credits, and guarantees provided to the Government of Mexico, 
        set forth by category of financing.
            (7) The progress the Government of Mexico has made in 
        stabilizing the peso and establishing an independent central 
        bank or currency board.
    (c) Summary of Treasury Department Reports.--In addition to the 
information required to be included under subsection (b), each report 
required under this section shall contain a summary of the information 
contained in all reports submitted under section 4 during the period 
covered by the report required under this section.

SEC. 4. REPORTS BY THE SECRETARY OF THE TREASURY.

    (a) Reporting Requirement.--Beginning on the last day of the first 
month which begins after the date of enactment of this Act, and on the 
last day of every month thereafter, the Secretary of the Treasury shall 
transmit a report to the appropriate congressional committees 
concerning all United States Government guarantees to, and short-term 
and long-term currency swaps with, Mexico.
    (b) Contents of Reports.--Each report described in subsection (a) 
shall include a description of the following actions taken, or economic 
situations existing, during the month in which the report is required 
to be submitted:
            (1) The current condition of the Mexican economy.
            (2) The reserve positions of the Mexican Central Bank and 
        data relating to the functioning of Mexican monetary policy.
            (3) The amount of any funds disbursed from the Exchange 
        Stabilization Fund pursuant to the approval of the President 
        issued on January 31, 1995.
            (4) The amount of any funds disbursed from the Federal 
        Reserve pursuant to the approval of the President issued on 
        January 31, 1995.
            (5) Financial transactions, both inside and outside of 
        Mexico, made during the reporting period involving funds 
        disbursed to Mexico from the Exchange Stabilization Fund or 
        proceeds of Mexican Government securities guaranteed by the 
        Exchange Stabilization Fund.
            (6) All outstanding Treasury guarantees and short-term and 
        medium-term currency swaps provided to the Government of 
        Mexico, set forth by category of financing.
            (7) All outstanding Federal Reserve currency swaps provided 
        to the Banco de Mexico and the rationale for, and any expected 
        costs of, such transactions.
            (8) The amount of payments made by customers of Mexican 
        petroleum companies that have been deposited in the account at 
        the Federal Reserve Bank of New York established to ensure 
        repayment of United States guarantees or swaps.
            (9) Any set-off by the Federal Reserve Bank of New York 
        against funds in the account of the Bank established to ensure 
        repayment of United States guarantees or swaps.
            (10) To the extent such information is available, once 
        there has been a set-off by the Federal Reserve Bank of New 
        York, any interruption in deliveries of petroleum products to 
        existing customers whose payments were set-off.
            (11) The interest rates and fees charged to compensate the 
        Department of the Treasury for the risk of providing financing.

SEC. 5. TERMINATION OF REPORTING REQUIREMENTS.

    The requirements of sections 3 and 4 shall terminate on the date 
that the Government of Mexico has paid all obligations with respect to 
swap facilities and guarantees of securities made available under the 
program approved by the President on January 31, 1995.

SEC. 6. PRESIDENTIAL CERTIFICATION.

    Notwithstanding any other provision of law, before extending any 
guarantee or swap of currencies to Mexico through the Exchange 
Stabilization Fund or the Federal Reserve under the program approved by 
the President on January 31, 1995, the President shall certify to the 
appropriate congressional committees that--
            (1) there is no projected cost (as defined in the Credit 
        Reform Act of 1990) to the United States from the proposed 
        guarantee or currency swap;
            (2) the proposed guarantee or currency swap is adequately 
        backed to ensure that United States funds will be repaid;
            (3) the Government of Mexico is making progress in ensuring 
        an independent central bank or an independent currency control 
        mechanism; and
            (4) Mexico has in effect a significant economic reform 
        effort.

SEC. 7. REPORT ON INVOLVEMENT BY SENIOR MEXICAN GOVERNMENT OFFICIALS IN 
              ILLEGAL DRUG TRAFFICKING.

    (a) Report.--Not later than 30 days after the date of enactment of 
this Act, the President shall transmit a report to the appropriate 
congressional committees setting forth all information available to the 
United States Government with respect to the involvement, since March 
1, 1991, by senior officials of the Government of Mexico, their 
relatives, and close associates, including any involvement by 
Presidents of Mexico, cabinet ministers, and military officers, in the 
illegal trafficking in controlled substances (as defined in section 
102(6) of the Controlled Substances Act (21 U.S.C. 802(6)) or in any 
act to aid or abet such illegal trafficking.
    (b) Definitions.--As used in this section:
            (1) Aid or abet.--The phrase ``aid or abet'' includes any 
        act to facilitate illegal trafficking in controlled substances, 
        including any solicitation or receipt of anything of value in 
        consideration of aiding a person to engage in illegal 
        trafficking of such substances.
            (2) Trafficking.--The term ``trafficking'' means 
        transporting, transferring, or otherwise disposing of, to 
        another, as consideration for anything of value, or making or 
        obtaining control of with the intent to so transport, transfer, 
        or dispose of.

SEC. 8. DEFINITION.

    As used in this Act, the term ``appropriate congressional 
committees'' means the Committees on International Relations and 
Banking and Financial Services of the House of Representatives and the 
Committees on Foreign Relations and Banking, Housing and Urban Affairs 
of the Senate.
    Amend the title so as to read: ``A bill to require reports on 
United States support for Mexico during its debt crisis, and for other 
purposes.''.
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