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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2232 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 2232

 To provide bilateral and multilateral debt relief to countries in sub-
                            Saharan Africa.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 1999

 Ms. Waters (for herself, Mr. Frank of Massachusetts, Ms. Lee, and Ms. 
 Schakowsky) introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committee 
  on Banking and Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To provide bilateral and multilateral debt relief to countries in sub-
                            Saharan Africa.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Debt Relief and 
Development in Africa Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Actions to provide bilateral debt relief and procedures for new 
                            loans, credits, and guarantees.
Sec. 3. Assistance for development of natural resources in sub-Saharan 
                            African poor countries.
Sec. 4. Export-Import Bank assistance not available to companies that 
                            develop natural resources in sub-Saharan 
                            African poor countries unless contracts to 
                            do so are publicly available.
Sec. 5. Ensuring burdensharing by other creditor countries.
Sec. 6. Actions to improve the provision of multilateral debt relief 
                            and procedures for new lending.

SEC. 2. ACTIONS TO PROVIDE BILATERAL DEBT RELIEF AND PROCEDURES FOR NEW 
              LOANS, CREDITS, AND GUARANTEES.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by adding at the end the following:

``PART VI--CANCELLATION AND REDUCTION OF DEBT OWED TO THE UNITED STATES 
  BY SUB-SAHARAN AFRICAN POOR COUNTRIES AND PROCEDURES FOR NEW LOANS, 
            CREDITS, AND GUARANTEES TO DEVELOPING COUNTRIES

``SEC. 901. CANCELLATION AND REDUCTION OF DEBT.

    ``(a) Cancellation of Debt.--
            ``(1) In general.--Subject to amounts provided in advance 
        in an appropriations Act, the President shall, prior to 
        September 30, 2001, cancel all amounts owed to the United 
        States (or any agency of the United States) by heavily indebted 
        poor countries described in section 902 as a result of 
        concessional loans made or credits extended prior to January 1, 
        1996, under any of the provisions of law described in paragraph 
        (2).
            ``(2) Provisions of law.--The provisions of law described 
        in this paragraph are the following:
                    ``(A) Part I of this Act, chapter 4 of part II of 
                this Act, or predecessor foreign economic assistance 
                legislation.
                    ``(B) Title I of the Agricultural Trade Development 
                and Assistance Act of 1954 (7 U.S.C. 1701 et seq.).
    ``(b) Reduction of Debt.--
            ``(1) In general.--Subject to amounts provided in advance 
        in an appropriations Act, the President shall, prior to 
        September 30, 2001, reduce, by not less than 95 percent, 
        amounts owed to the United States (or any agency of the United 
        States) by each heavily indebted poor country described in 
        section 902 as a result of nonconcessional loans made, 
        guarantees issued, or credits extended prior to January 1, 
        1996, under any of the provisions of law described in paragraph 
        (2).
            ``(2) Provisions of law.--The provisions of law described 
        in this paragraph are the following:
                    ``(A) Sections 221 and 222 of this Act.
                    ``(B) The Arms Export Control Act (22 U.S.C. 2751 
                et seq.).
                    ``(C) Section 5(f) of the Commodity Credit 
                Corporation Charter Act.
                    ``(D)(i) Section 201 of the Agricultural Trade Act 
                of 1978 (7 U.S.C. 5621).
                    ``(ii) Section 202 of such Act (7 U.S.C. 5622).
                    ``(E) The Export-Import Bank Act of 1945 (12 U.S.C. 
                635 et seq.).

``SEC. 902. ELIGIBLE COUNTRIES.

    ``(a) Heavily Indebted Poor Countries.--Except as provided in 
subsection (b) and subject to the fulfillment of the additional 
requirement in subsection (c), a country shall be considered to be a 
heavily indebted poor country and eligible for cancellation or 
reduction of debt under section 901 if the country is a country in sub-
Saharan Africa and the country--
            ``(1) is eligible to borrow from the International 
        Development Association;
            ``(2) is not eligible to borrow from the International Bank 
        for Reconstruction and Development; and
            ``(3) has outstanding public and publicly guaranteed debt, 
        the net present value of which on December 31, 1996, was at 
        least 100 percent of the average annual value of the exports of 
        the country for the period 1994 through 1996.
    ``(b) Exceptions.--A country shall not be eligible for cancellation 
or reduction of debt under section 901 if the government of the 
country--
            ``(1) supports or condones the practice of slavery or there 
        is documented evidence of the existence of slavery in the 
        country and the government is not making a concerted effort to 
        eradicate the practice; or
            ``(2) (including its military or other security forces) 
        engages in a consistent pattern of gross violations of 
        internationally recognized human rights.
    ``(c) Additional Requirement.--A country which is otherwise 
eligible to receive cancellation or reduction of debt under section 901 
may receive such cancellation or reduction, as the case may be, only if 
the government of the country has established, through transparent and 
participatory processes, including participation of civil society--
            ``(1) a human development fund (hereinafter referred to as 
        the `Human Development Fund')--
                    ``(A) the resources of which shall be dedicated to 
                reducing the number of persons living in poverty, 
                expanding access of the poorest members of society to 
                basic social services, including education, health, 
                clean water and sanitation, and preventing the 
                degradation of the environment; and
                    ``(B) into which shall be deposited all savings 
                generated by debt reduction received under the Heavily 
                Indebted Poor Countries (HIPC) Initiative of the 
                International Bank for Reconstruction and Development 
                and the International Monetary Fund and other debt 
                reduction programs;
            ``(2) arrangements to ensure that all expenditures from the 
        Human Development Fund during a year will be used to increase 
        annual expenditures for human development by the government 
        above the greater of--
                    ``(A) the total amount of annual expenditures for 
                human development by the government for the preceding 
                year; or
                    ``(B) the average total amount of such expenditures 
                for the 3 years immediately preceding the year in which 
                such fund is established; and
            ``(3) arrangements for monitoring the operations and 
        financial transactions and accounts of the Human Development 
        Fund by an oversight body which includes representatives of 
        civil society.

``SEC. 903. PRIORITY.

    ``In canceling or reducing debt under section 901, the President--
            ``(1) shall give priority to--
                    ``(A) heavily indebted poor countries that have 
                demonstrated a sustained commitment to poverty 
                alleviation or have recently suffered a major natural 
                disaster; or
                    ``(B) the poorest heavily indebted poor countries, 
                as determined by the countries' per capita income, the 
                United Nations' Human Development Index, or another 
                relevant measure of poverty; and
            ``(2) shall give the highest priority to those countries 
        that meet the requirements of both subparagraphs (A) and (B) of 
        paragraph (1).

``SEC. 904. SPECIAL PROVISIONS.

    ``(a) Cancellation or Reduction of Debt Not Considered To Be 
Assistance.--Except as the President may otherwise determine for 
reasons of national security, a cancellation or reduction of debt under 
section 901 shall not be considered to be assistance for purposes of 
any provision of law limiting assistance to a country.
    ``(b) Inapplicability of Certain Prohibitions Relating to 
Cancellation or Reduction of Debt.--The authority to provide for 
cancellation or reduction of debt under section 901 may be exercised 
notwithstanding section 620(r) of this Act.

``SEC. 905. ANNUAL REPORTS TO THE CONGRESS.

    ``(a) In General.--Not later than December 31 of each year, the 
President shall prepare and transmit to the appropriate congressional 
committees a report, which shall be made available to the public, 
concerning the cancellation and reduction of debt under section 901, 
and determinations made under section 904(a) for the prior fiscal year. 
The report shall also include a list of the countries that have 
received debt cancellation or reduction under section 901 and a list of 
the countries that have been denied debt cancellation or reduction 
under section 902 and the reasons therefor.
    ``(b) Definition.--In this section, the term `appropriate 
congressional committees' means--
            ``(1) the Committee on Banking and Financial Services and 
        the Committee on International Relations of the House of 
        Representatives; and
            ``(2) the Committee on Foreign Relations of the Senate.

``SEC. 906. SENSE OF THE CONGRESS.

    ``It is the sense of the Congress that the amounts that would 
otherwise be provided by the United States for development aid or other 
debt relief should not be reduced on account of any appropriations made 
pursuant to section 907.

``SEC. 907. AUTHORIZATION OF APPROPRIATIONS.

    ``For the cost (as defined in section 502(5) of the Federal Credit 
Reform Act of 1990) of the cancellation or reduction of any debt under 
section 901 of this Act, there are authorized to be appropriated to the 
President such sums as may be necessary for each of the fiscal years 
2000 and 2001.

``SEC. 908. PROCEDURES FOR NEW LOANS, CREDITS, AND GUARANTEES.

    ``The President shall, to the extent appropriate, ensure that all 
decisions by the Government of the United States (or any agency of the 
United States) to make new loans, extend new credits or issue new 
guarantees to the governments (or any agency of the governments) of, or 
private parties in, any developing country shall be subject to 
transparent and participatory processes, including giving due notice to 
the public in advance of such decisions of the proposed purposes, 
terms, and conditions of such loans, credits, and guarantees.''.

SEC. 3. ASSISTANCE FOR DEVELOPMENT OF NATURAL RESOURCES IN SUB-SAHARAN 
              AFRICAN POOR COUNTRIES.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), as 
amended by this Act, is further amended by adding at the end the 
following:

  ``PART VII--ASSISTANCE FOR DEVELOPMENT OF NATURAL RESOURCES IN SUB-
                     SAHARAN AFRICAN POOR COUNTRIES

``SEC. 921. AUTHORIZATION OF ASSISTANCE.

    ``The Administrator of the United States Agency for International 
Development, in consultation with the Secretary of the Treasury, the 
Administrator of the Environmental Protection Agency, and the Secretary 
of Labor, shall establish and carry out a program to provide 
assistance, including technical assistance, to countries described in 
section 902 of this Act (except subsection (a)(3) of such section) for 
the purpose of--
            ``(1) establishing plans in such countries, through 
        transparent and participatory processes, including the 
        participation of civil society, for the development of the 
        countries' natural resources in a manner that will benefit the 
        population of the country; and
            ``(2) in negotiating or renegotiating equitable contracts 
        with foreign or multinational corporations for the development 
        of natural resources.

``SEC. 922. ADDITIONAL REQUIREMENTS.

    ``(a) In General.--Plans described in section 921 should include 
the following:
            ``(1) The natural resources that are being developed or 
        will be developed in the country.
            ``(2) The profits and other benefits that the government 
        estimates will accrue to the companies involved in the 
        development of such natural resources.
            ``(3) The corporate tax revenues, land use fees, resource 
        extraction fees, export tariffs, and other revenues that the 
        government estimates will be raised as a result of the 
        development and extraction of such natural resources.
            ``(4) The plans of the government for the use of the 
        revenues so raised.
            ``(5) The plans of the government to conserve such natural 
        resources and protect the environment of the country.
            ``(6) The plans of the government to protect public health 
        and safety and the rights of workers.
            ``(7) The plans of the government to provide for the 
        training and education of the local population and to ensure 
        that the companies involved in the development of such natural 
        resources provide members of the local population opportunities 
        for employment and advancement.
            ``(8) Any other plans of the government to ensure a fair 
        return to the country and its people for the development of 
        such natural resources.
    ``(b) Transparency.--The Administrator shall encourage each 
government to make available to the public all contracts between the 
government (including any enterprise owned or controlled by the 
government) and a foreign or multinational corporation for the 
development of natural resources of the country.

``SEC. 923. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary of the 
Treasury such sums as may be necessary for each of the fiscal years 
2000 through 2006 to carry out this part.''.

SEC. 4. EXPORT-IMPORT BANK ASSISTANCE NOT AVAILABLE TO COMPANIES THAT 
              DEVELOP NATURAL RESOURCES IN SUB-SAHARAN AFRICAN POOR 
              COUNTRIES UNLESS CONTRACTS TO DO SO ARE PUBLICLY 
              AVAILABLE.

    Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)) is amended by adding at the end the following:
    ``(12) The Bank shall not insure, guarantee, extend credit, or 
participate in an extension of credit to any private entity that is 
involved in developing natural resources in any country described in 
section 902(a) of the Foreign Assistance Act of 1961 (except subsection 
(a)(3) of such section), unless the entity has made a copy of each 
contract in effect between the entity and the government of any such 
country (including any enterprise owned or controlled by any such 
government) available to the public.''.

SEC. 5. ENSURING BURDENSHARING BY OTHER CREDITOR COUNTRIES.

    In order to accelerate bilateral debt relief and promote economic 
and human development and poverty alleviation in heavily indebted sub-
Saharan African poor countries, the Congress urges the President, 
immediately after the date of the enactment of this Act, to establish 
diplomatic efforts with countries that are members of the Paris Club of 
Official Creditors, and, if necessary, with other creditors, to 
accomplish the following by September 30, 2001:
            (1) The cancellation of all amounts owed to each such 
        member country by heavily indebted poor countries described in 
        section 902 of the Foreign Assistance Act of 1961 (as added by 
        section 2) as a result of concessional loans made or credits 
        extended prior to January 1, 1996, by each such country.
            (2) The reduction, by not less than 95 percent, of amounts 
        owed to each such country by heavily indebted poor countries 
        described in section 902 of the Foreign Assistance Act of 1961 
        (as added by section 2) as a result of nonconcessional loans 
        made, guarantees issued, or credits extended prior to January 
        1, 1996, by each such country.
            (3) The establishment of procedures by the Club to ensure 
        greater transparency in the decision-making process, including 
        publication of each decision and its rationale, on all 
        applications to the Club for debt reduction by heavily indebted 
        poor countries described in section 902 of the Foreign 
        Assistance Act of 1961 (as added by section 2).

SEC. 6. ACTIONS TO IMPROVE THE PROVISION OF MULTILATERAL DEBT RELIEF 
              AND PROCEDURES FOR NEW LENDING.

    (a) Modifications to the HIPC Initiative.--Title XVI of the 
International Financial Institutions Act (22 U.S.C. 262p-262p-5) is 
amended by adding at the end the following:

``SEC. 1623. IMPROVEMENT OF THE HEAVILY INDEBTED POOR COUNTRIES 
              INITIATIVE; ENSURING EQUITABLE BURDEN SHARING.

    ``(a) Improvement of the HIPC Initiative.--In order to accelerate 
multilateral debt relief and promote economic and human development and 
poverty alleviation in heavily indebted poor countries in sub-Saharan 
Africa, the Congress urges the President to commence immediately 
diplomatic efforts, within the Paris Club of Official Creditors, as 
well as the International Bank for Reconstruction and Development 
(World Bank), the International Monetary Fund (IMF), the African 
Development Bank, and other appropriate multilateral development 
institutions to accomplish the following modifications in the Heavily 
Indebted Poor Countries (HIPC) Initiative with respect to countries in 
sub-Saharan Africa:
            ``(1) Prohibition on structural adjustment programs.--The 
        provision of debt reduction under the HIPC Initiative shall not 
        be conditioned on any country adopting or implementing any 
        structural adjustment program, but may be conditioned on good 
        governance, transparency, or the elimination of economic 
        corruption.
            ``(2) Revision of country eligibility requirement.--A 
        country shall be regarded as having an unsustainable debt 
        burden for purposes of qualifying for debt reduction (or for 
        further debt reduction) under the HIPC Initiative if the net 
        present value of the outstanding public and publicly guaranteed 
        debt of the country at the end of 1996 was at least 100 percent 
        of the average annual value of the exports of the country for 
        the period 1994 through 1996.
            ``(3) Requirement for a human development fund.--Debt 
        reduction under the HIPC Initiative shall not be provided for 
        the benefit of a country unless the government of the country 
        has established, through transparent and participatory 
        processes, including the participation of civil society--
                    ``(A) a plan of action for human development (in 
                this section referred to as the `Action Plan') which 
                includes policies, programs, and projects designed to 
                reduce the number of persons living in poverty, expand 
                access of the poorest members of society to basic 
                social services, including health, education, clean 
                water, and sanitation, and prevent the degradation of 
                the environment;
                    ``(B) a human development fund (in this section 
                referred to as the `Human Development Fund')--
                            ``(i) the resources of which are dedicated 
                        to achieving the purposes of the Action Plan; 
                        and
                            ``(ii) into which are required to be 
                        deposited all savings generated by debt 
                        reduction provided for the benefit of the 
                        country under the Heavily Indebted Poor 
                        Countries (HIPC) Initiative and under other 
                        debt reduction programs;
                    ``(C) arrangements to ensure that all expenditures 
                from the Human Development Fund during a year will be 
                used to increase annual expenditures for human 
                development by the government above the greater of--
                            ``(i) the total amount of annual 
                        expenditures for human development by the 
                        government for the preceding year; or
                            ``(ii) the average total amount of such 
                        expenditures for the 3 years immediately 
                        preceding the year in which such fund is 
                        established; and
                    ``(D) arrangements for monitoring the operations, 
                financial transactions, and accounts of the Human 
                Development Fund by an oversight body which includes 
                representatives of civil society.
            ``(4) Requirement for a natural resources development 
        plan.--
                    ``(A) In general.--Debt reduction under the HIPC 
                Initiative shall not be provided for the benefit of a 
                country unless the government of the country has 
                established through transparent and participatory 
                processes (including the participation of civil 
                society) a plan (in this section referred to as the 
                `Natural Resources Development Plan'), covering at 
                least a 5-year period, for the development of the 
                country's natural resources in a manner that will 
                benefit the population of the country. The plan shall 
                specify at least the following:
                            ``(i) The natural resources that are being 
                        developed or will be developed in the country.
                            ``(ii) The profits and other benefits that 
                        the government estimates will accrue to the 
                        companies involved in the development of such 
                        natural resources.
                            ``(iii) The corporate tax revenues, land 
                        use fees, resource extraction fees, export 
                        tariffs, and other revenues that the government 
                        estimates will be raised as a result of the 
                        development and extraction of such natural 
                        resources.
                            ``(iv) The plans of the government for the 
                        use of the revenues so raised.
                            ``(v) The plans of the government to 
                        conserve such natural resources and protect the 
                        environment of the country.
                            ``(vi) The plans of the government to 
                        protect public health and safety and the rights 
                        of workers.
                            ``(vii) The plans of the government to 
                        provide for the training and education of the 
                        local population and to ensure that the 
                        companies involved in the development of such 
                        natural resources provide members of the local 
                        population opportunities for employment and 
                        advancement.
                            ``(viii) Any other plans of the government 
                        to ensure a fair return to the country and its 
                        people for the development of such natural 
                        resources.
                    ``(B) Transparency.--All contracts between the 
                government (including any enterprise owned or 
                controlled by the government) and a foreign or 
                multinational corporation for the development of 
                natural resources of the country shall be made 
                available to the public.
                    ``(C) Assistance.--The World Bank, the African 
                Development Bank, the IMF, or other appropriate 
                multilateral development institutions shall, under the 
                HIPC Initiative, provide assistance to countries in 
                developing their Natural Resources Development Plans 
                and in negotiating or renegotiating equitable contracts 
                with foreign or multinational corporations for the 
                development of natural resources.
            ``(5) Timing of provision of debt reduction.--As soon as a 
        country has complied with the requirements described in 
        paragraphs (2), (3), and (4), the country shall be considered 
        eligible for immediate debt reduction under the HIPC 
        Initiative.
            ``(6) Amount of debt reduction.--The amount of the debt 
        reduction provided under the HIPC Initiative for the benefit of 
        a country with an unsustainable debt burden shall be sufficient 
        to reduce--
                    ``(A) the net present value of the outstanding 
                public and publicly guaranteed debt of the country to 
                less than 100 percent of the value of the annual 
                exports of the country; and
                    ``(B) the amount of annual payments due on such 
                public and publicly guaranteed debt to not more than 5 
                percent of the amount of annual current revenue 
                received by the government of the country from internal 
                sources.
            ``(7) Transparency and participation in hipc decision 
        making.--All decisions under the HIPC Initiative concerning the 
        amount, terms and conditions, and timing of debt relief for a 
        country, and the processes by which such decisions are made, 
        shall be subject to procedures which are--
                    ``(A) transparent, including publication of the 
                content of the decisions and of all relevant 
                analytical, legal, and policy documents, including Debt 
                Sustainability Analyses, Policy Framework Papers, debt 
                relief agreements, and national development programs 
                and budgets; and
                    ``(B) participatory, including the participation of 
                civil society.
            ``(8) Evaluation of debt relief eligibility by the african 
        development bank.--The African Development Bank shall be 
        responsible for--
                    ``(A) determining the eligibility of sub-Saharan 
                African countries to receive debt reduction under the 
                HIPC Initiative;
                    ``(B) evaluating proposals of the governments of 
                such countries for Human Development Funds, Natural 
                Resources Development Plans, and for meeting all other 
                requirements imposed as a condition of receiving such 
                debt reduction; and
                    ``(C) evaluating the compliance of such countries 
                with all requirements imposed as a condition of 
                receiving such debt reduction.
            ``(9) Monitoring panels.--
                    ``(A) Establishment.--The African Development Bank 
                shall establish a Monitoring Panel for each country 
                that is eligible to receive debt reduction under the 
                HIPC Initiative.
                    ``(B) Duties.--The Monitoring Panel for a country--
                            ``(i) shall review all proposed conditions 
                        for the receipt of such debt reduction, 
                        including proposals for a Natural Resources 
                        Development Plan and the establishment of a 
                        Human Development Fund;
                            ``(ii) shall issue a report when the 
                        African Development Bank and the country reach 
                        an agreement on the conditions for debt relief, 
                        and thereafter at least every 6 months, which 
                        shall be made available to the public;
                            ``(iii) shall meet at least once per month 
                        to evaluate and report on the progress of the 
                        country's debt relief program;
                            ``(iv) shall review all actions by the 
                        country's government, the African Development 
                        Bank, and other creditor governments and 
                        institutions affecting the progress of the 
                        country's debt relief program; and
                            ``(v) shall review the implementation of 
                        the country's Natural Resources Development 
                        Plan and the use of the funds deposited in the 
                        Human Development Fund.
                    ``(C) Composition.--
                            ``(i) In general.--The Monitoring Panel for 
                        a country--
                                    ``(I) shall include individuals who 
                                represent the government of the 
                                country, individuals who represent 
                                civil society in the country, 
                                representatives of creditor governments 
                                and multilateral institutions, and 
                                representatives of civil society in 
                                creditor countries; and
                                    ``(II) may include a representative 
                                of UNICEF and a representative of the 
                                United Nations.
                        For purposes of this clause, the term `civil 
                        society' includes individuals representing 
                        labor unions, environmental organizations, 
                        human rights organizations, religious 
                        organizations, farmers' organizations, women's 
                        organizations, indigenous people's 
                        organizations, students' organizations, 
                        opposition political parties, and other 
                        community organizations.
                            ``(ii) Representatives from the country 
                        involved.--At least half of the members of the 
                        Monitoring Panel for a country shall be 
                        citizens of the country.
                    ``(D) Travel and administrative expenses.--The 
                African Development Bank shall provide all funds 
                necessary for travel and administrative expenses for 
                each Monitoring Panel to fulfill its functions.
            ``(10) Special provisions.--
                    ``(A) In providing debt reduction under the HIPC 
                Initiative, priority shall be given to the poorest 
                countries, as determined by the countries' per capita 
                income, the United Nations' Human Development Index, or 
                another relevant measure of poverty.
                    ``(B) Debt reduction under the HIPC Initiative for 
                the benefit of a country that has demonstrated a 
                sustained commitment to poverty alleviation or has 
                recently suffered a major natural disaster shall be 
                provided in a greater amount or more quickly than would 
                otherwise be the case under the HIPC Initiative.
            ``(11) HIPC review.--The Secretary of the Treasury shall 
        make every effort (including instructing the United States 
        Executive Directors at the IMF, the World Bank, and the African 
        Development Bank) to ensure that a comprehensive external 
        assessment of the HIPC Initiative shall take place by December 
        31, 2001, shall incorporate the views of debtor governments and 
        civil society, shall be made public, and shall include--
                    ``(A) an analysis of the contribution of the HIPC 
                Initiative to the poverty reduction and social 
                development goals for the 21st century established by 
                the Development Assistance Committee of the 
                Organization for Economic Cooperation and Development; 
                and
                    ``(B) recommendations to the IMF, the World Bank, 
                the African Development Bank, and the governments of 
                the United States and other creditor countries that may 
                be necessary to strengthen the contribution of the HIPC 
                Initiative to the poverty reduction and social goals 
                referred to in subparagraph (A).
            ``(12) Termination of the hipc initiative.--The HIPC 
        Initiative shall not terminate until all the debt reduction 
        contemplated by this section has been carried out.
    ``(b) Promotion of Equitable Burden Sharing.--In order to promote 
equitable burden-sharing by bilateral, multilateral, and private 
creditors under the HIPC initiative, the Congress urges the President 
to commence immediately diplomatic efforts to ensure that such 
creditors draw upon their own resources to finance debt reduction under 
the HIPC Initiative to the extent possible without diverting funds from 
other high priority poverty alleviation programs.
    ``(c) Contributions to the HIPC Trust Fund.--For payment to the 
Heavily Indebted Poor Countries Trust Fund of the International Bank 
for Reconstruction and Development, there are authorized to be 
appropriated to the President such sums as may be necessary for fiscal 
years 2000, 2001, and 2002, except that if, with respect to fiscal year 
2001 or 2002, the President has not determined that, during the then 
preceding fiscal year, satisfactory progress was made in accomplishing 
the improvements in the HIPC initiative described in subsections (a) 
and (b), then no sums are authorized to be appropriated for such 
purpose for the fiscal year.
    ``(d) Sense of Congress.--It is the sense of Congress that the 
amounts that would otherwise be provided by the United States for 
development aid or other debt relief should not be reduced on account 
of any appropriations pursuant to subsection (c).
    ``(e) Report to the Congress.--Not later than December 31 of each 
year, the President shall submit to the Committees on Banking and 
Financial Services and on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report, which shall be made available to the public, on the activities 
undertaken under this section, and on the progress made in 
accomplishing the purposes of this section, for the prior fiscal year. 
The report shall include a list of the countries that have received 
debt relief under the HIPC Initiative, a list of the countries whose 
request for such debt relief has been denied and the reasons therefor, 
and a list of the countries whose requests for such debt relief are 
under consideration.

``SEC. 1624. IMPROVEMENT OF PROCEDURES FOR NEW LENDING.

    ``The President, acting through the Secretary of the Treasury, 
shall work with the member countries of the international financial 
institutions (as defined in section 1701(c)(2)) to ensure transparency 
and public participation in decisions to make new loans, and the terms 
and conditions of such loans, to developing countries, including--
            ``(1) disclosure of Policy Framework Papers, Public 
        Expenditure Reviews, Country Assistance Strategies, 
        International Monetary Fund Letters of Intent, appraisal 
        documents, and other reports relevant to proposed lending 
        operations;
            ``(2) participation of civil society in the design of 
        national development programs and in decisions to borrow from 
        such institutions in support of such programs; and
            ``(3) provision of detailed information to the Board of 
        Directors of such an institution and to the public, prior to 
        the approval of a lending operation for a developing country, 
        as to the nature and extent of civil society participation in 
        the design of, and approval process for, such operation.''.
    (b) Funding of Debt Reduction Under the HIPC Initiative.--Section 5 
of the Bretton Woods Agreements Act (22 U.S.C. 286c) is amended by 
adding at the end the following: ``No director appointed to represent 
the United States at the Fund shall vote for any proposal to sell or 
otherwise convert or liquidate gold, unless there are in effect such 
laws and procedures as may be necessary to ensure that all of the 
proceeds obtained from any such sale, conversion, or liquidation are 
deposited in the HIPC Trust Fund administered by the International Bank 
for Reconstruction and Development, and that such funds are used only 
for the provision of debt reduction under the Heavily Indebted Poor 
Countries (HIPC) Initiative.''.
                                 <all>
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