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104TH CONGRESS

1ST SESSION S. CON. RES. 6

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 SENATE OF THE UNITED STATES

FEBRUARY 14 (legislative day, JANUARY 30), 1995

Mr. MACK (for himself, Mr. D’AMATO, Mr. SHELBY, Mr. BOND, Mr.

FAIRCLOTH, Mr. GRAMS, Mr. FRIST, Mr. BROWN, Mr. MURKOWSKI, Mr.

BENNETT, and Mr. GRAMM) submitted the following concurrent resolution; which was referred to the Committee on Foreign Relations

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.

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

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, That it is the sense of the Congress that—
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•SCON 6 IS

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

2 conjunction with reports required under section

3 5302 of title 31, United States Code, by the 30th

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

5 report to the Committee on Banking, Housing, and

6 Urban Affairs of the Senate and the Committee on

7 Banking and Financial Services of the House of

8 Representatives describing, with respect to such

9 month—

10 (A) the condition of the Mexican economy;

11 (B) any consultations between the Govern12 ment of Mexico and the Department of the

13 Treasury or the International Monetary Fund;

14 and

15 (C) any funds disbursed from the exchange

16 stabilization fund, including any swap facilities

17 or securities guarantees, pursuant to the ap18 proval of the President issued on January 31,

19 1995;

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

21 should include, with respect to the month for which

22 the report is submitted—

23 (A) a full description of the activities of

24 the Mexican Central Bank and Mexican ex25 change rate policy, including the reserve posi-
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1 tions of the Mexican Central Bank and data re2 lating to the functioning of Mexican monetary

3 policy;

4 (B) information regarding the implementa5 tion and the extent of wage, price, and credit

6 controls in the Mexican economy;

7 (C) a complete documentation of Mexican

8 tax policy and any proposed changes to such

9 policy;

10 (D) a list of planned or pending Mexican

11 Government regulations affecting the Mexican

12 private sector;

13 (E) any efforts to privatize public sector

14 entities in Mexico; and

15 (F) a full disclosure of all financial trans16 actions, both inside and outside of Mexico, di17 rectly involving funds disbursed from the ex18 change stabilization fund and the International

19 Monetary Fund, including transactions with—

20 (i) individuals;

21 (ii) partnerships;

22 (iii) joint ventures; and

23 (iv) corporations; and

24 (3) the Secretary of the Treasury should con25 tinue to submit reports under paragraph (1) until
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1 the Secretary determines that no further risk exists

2 to United States taxpayers of default by the Govern3 ment of Mexico on funds provided from the exchange

4 stabilization fund, the Federal Reserve System, or

5 the International Monetary Fund pursuant to the

6 program of assistance approved by the President on

7 January 31, 1995.

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