II

105TH CONGRESS

1ST SESSION S. 1200

To provide that countries receiving foreign assistance be conducive to United

States business.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 19, 1997

Mr. CAMPBELL introduced the following bill; which was read twice and

referred to the Committee on Foreign Relations

A BILL

To provide that countries receiving foreign assistance be

conducive to United States business.

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 Anti-Cor5 ruption Act of 1997’’.

6 SEC. 2. LIMITATIONS ON FOREIGN ASSISTANCE.

7 (a) REPORT AND CERTIFICATION.—

8 (1) IN GENERAL.—Not later than March 1 of

9 each year, the President shall submit to the appro10 priate committees a certification described in para-
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1 graph (2) and a report for each country that re2 ceived foreign assistance under part I of the Foreign

3 Assistance Act of 1961 during the fiscal year. The

4 report shall describe the extent to which each such

5 country is making progress with respect to the fol6 lowing economic indicators:

7 (A) Implementation of comprehensive eco8 nomic reform, based on market principles, pri9 vate ownership, equitable treatment of foreign

10 private investment, adoption of a legal and pol11 icy framework necessary for such reform, pro12 tection of intellectual property rights, and re13 spect for contracts.

14 (B) Elimination of corrupt trade practices

15 by private persons and government officials.

16 (C) Moving toward integration into the

17 world economy.

18 (2) CERTIFICATION.—The certification de19 scribed in this paragraph means a certification as to

20 whether, based on the economic indicators described

21 in subparagraphs (A) through (C) of paragraph (1),

22 each country is—

23 (A) conducive to United States business;

24 (B) not conducive to United States busi25 ness; or
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1 (C) hostile to United States business.

2 (b) LIMITATIONS ON ASSISTANCE.—

3 (1) COUNTRIES HOSTILE TO UNITED STATES

4 BUSINESS.—

5 (A) GENERAL LIMITATION.—Beginning on

6 the date the certification described in sub7 section (a) is submitted—

8 (i) none of the funds made available

9 for assistance under part I of the Foreign

10 Assistance Act of 1961 (including unobli11 gated balances of prior appropriations)

12 may be made available for the government

13 of a country that is certified as hostile to

14 United States business pursuant to such

15 subsection (a); and

16 (ii) the Secretary of the Treasury

17 shall instruct the United States Executive

18 Director of each multilateral development

19 bank to vote against any loan or other uti20 lization of the funds of such institution to

21 or by any country with respect to which a

22 certification described in clause (i) has

23 been made.

24 (B) DURATION OF LIMITATIONS.—Except

25 as provided in subsection (c), the limitations de-
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1 scribed in clauses (i) and (ii) of subparagraph

2 (A) shall apply with respect to a country that

3 is certified as hostile to United States business

4 pursuant to subsection (a) until the President

5 certifies to the appropriate committees that the

6 country is making significant progress in imple7 menting the economic indicators described in

8 subsection (a)(1) and is no longer hostile to

9 United States business.

10 (2) COUNTRIES NOT CONDUCIVE TO UNITED

11 STATES BUSINESS.—

12 (A) PROBATIONARY PERIOD.—A country

13 that is certified as not conducive to United

14 States business pursuant to subsection (a),

15 shall be considered to be on probation beginning

16 on the date of such certification.

17 (B) REQUIRED IMPROVEMENT.—Unless

18 the President certifies to the appropriate com19 mittees that the country is making significant

20 progress in implementing the economic indica21 tors described in subsection (a) and is commit22 ted to being conducive to United States busi23 ness, beginning on the first day of the fiscal

24 year following the fiscal year in which a country
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1 is certified as not conducive to United States

2 business pursuant to subsection (a)(2)—

3 (i) none of the funds made available

4 for assistance under part I of the Foreign

5 Assistance Act of 1961 (including unobli6 gated balances of prior appropriations)

7 may be made available for the government

8 of such country; and

9 (ii) the Secretary of the Treasury

10 shall instruct the United States Executive

11 Director of each multilateral development

12 bank to vote against any loan or other uti13 lization of the funds of such institution to

14 or by any country with respect to which a

15 certification described in subparagraph (A)

16 has been made.

17 (C) DURATION OF LIMITATIONS.—Except

18 as provided in subsection (c), the limitations de19 scribed in clauses (i) and (ii) of subparagraph

20 (B) shall apply with respect to a country that

21 is certified as not conducive to United States

22 business pursuant to subsection (a) until the

23 President certifies to the appropriate commit24 tees that the country is making significant

25 progress in implementing the economic indica-
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1 tors described in subsection (a)(1) and is con2 ducive to United States business.

3 (c) EXCEPTIONS.—

4 (1) NATIONAL SECURITY INTEREST.—Sub5 section (b) shall not apply with respect to a country

6 described in subsection (b) (1) or (2) if the Presi7 dent determines with respect to such country that

8 making such funds available is important to the na9 tional security interest of the United States. Any

10 such determination shall cease to be effective 6

11 months after being made unless the President deter12 mines that its continuation is important to the na13 tional security interest of the United States.

14 (2) OTHER EXCEPTIONS.—Subsection (b) shall

15 not apply with respect to—

16 (A) assistance to meet urgent humani17 tarian needs (including providing food, medi18 cine, disaster, and refugee relief);

19 (B) democratic political reform and rule of

20 law activities;

21 (C) the creation of private sector and non22 governmental organizations that are independ23 ent of government control; and

24 (D) the development of a free market eco25 nomic system.
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1 SEC. 3. TOLL-FREE NUMBER.

2 The Secretary of Commerce shall make available a

3 toll-free telephone number for reporting by members of the

4 public and United States businesses on the progress that

5 countries receiving foreign assistance are making in imple6 menting the economic indicators described in section

7 2(a)(1). The information obtained from the toll-free tele8 phone reporting shall be included in the report required

9 by section 2(a).

10 SEC. 4. DEFINITIONS.

11 In this Act:

12 (1) APPROPRIATE COMMITTEES.—The term

13 ‘‘appropriate committees’’ means the Committee on

14 International Relations of the House of Representa15 tives and the Committee on Foreign Relations of the

16 Senate.

17 (2) MULTILATERAL DEVELOPMENT BANK.—

18 The term ‘‘multilateral development bank’’ means

19 the International Bank for Reconstruction and De20 velopment, the International Development Associa21 tion, and the European Bank for Reconstruction and

22 Development.

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