I 
108TH CONGRESS 
2D SESSION 
H. R. 4364 
To amend the Foreign Assistance Act of 1961 to require the governments 
of low income oil-producing countries to meet certain requirements relat-
ing to their oil revenues in order to be eligible to receive United States 
economic assistance. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2004 
Mr. HYDE introduced the following bill; which was referred to the Committee 
on International Relations, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Foreign Assistance Act of 1961 to require 
the governments of low income oil-producing countries 
to meet certain requirements relating to their oil reve-
nues in order to be eligible to receive United States 
economic assistance. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Eco-
nomic Assistance Conditionality Act of 2004’’.
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The governments of low income oil-pro-
ducing countries often do not provide information to 
the people of such countries regarding their oil reve-
nues. Such opacity can hide billions of dollars worth 
of financial impropriety. 
(2) The governments of such countries have 
generally refused to disclose information regarding 
their oil revenues when pressed by international or-
ganizations and others, proclaiming that such disclo-
sure is an infringement on national sovereignty. 
(3) As a result, the people of such countries are 
left without the necessary information to ensure 
proper management and accountability regarding 
such oil revenues. Dispossessed, the people of such 
countries are often left marginalized and at the 
mercy of donor assistance. In Angola, for example, 
one in every four oil dollars earned is unaccounted 
for. At the same time, one in four Angolan children 
dies before the age of five from preventable diseases. 
(4) In some low income oil-producing countries, 
government-imposed royalties and fees on the reve-
nues of business enterprises engaged in oil produc-
tion are often misappropriated and squandered.
These businesses are then left vulnerable to accusa-
tions of complicity with corruption. 
(5) The governments of low income oil-pro-
ducing countries that mismanage oil revenues are 
often unstable and do not survive, creating further 
instability that threatens the supply of vital indus-
trial commodities and forcing the international com-
munity to respond with costly emergency assistance 
to those countries. 
(6) A key to promoting political, economic, and 
social reform in low income oil-producing is trans-
parency in public finances. 
(7) If the governments of such countries tell 
their people how much oil revenue the government 
receives and how that revenue is allocated and ex-
pended, the resulting transparency will engender 
more realistic public expectations, more plausible na-
tional development programs, and better means to 
combat corruption and promote democracy, respect 
for human rights, and the rule of law. 
(8) Transparency by such foreign governments 
will benefit United States business enterprises as 
well. Respect for the rule of law, codified regulatory 
practices, and transparent bidding and award prac-
tices deter corruption and encourage a level playing
field in such countries for United States business en-
terprises. 
(9) Export credit activities and other bilateral 
concessional loan programs of the United States 
Government for low income oil-producing countries 
should require that any assistance under such activi-
ties and programs be conditional on appropriate 
transparency by the governments of such countries 
relating to oil revenues. 
(10) International financial institutions such as 
the World Bank should incorporate revenue trans-
parency across their lending and technical assistance 
portfolios by making full transparency a condition of 
all their financial support and by including it in 
their national poverty reduction strategy consulta-
tions. 
(11) One bold and promising model is the 
Chad/Cameroon Pipeline Project, under which the 
Government of Chad, private investors, and the 
World Bank Group have established an account-
ability and oversight mechanism for the country’s 
revenues derived from oil production. 
(12) Donald Norland, former United States 
Ambassador to Chad, in testimony on April 18, 
2002, before the Committee on International Rela-
(2) by adding at the end the following new sec-
tion: 
‘‘SEC. 620K. LIMITATION ON UNITED STATES ECONOMIC AS-
SISTANCE FOR LOW INCOME OIL-PRODUCING 
COUNTRIES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) LOW INCOME COUNTRY.—The term ‘low 
income country’ means a country that has a per cap-
ita income equal to or less than the historical ceiling 
of the International Development Association, as de-
fined by the International Bank for Reconstruction 
and Development. 
‘‘(2) LOW INCOME OIL PRODUCING COUNTRY.— 
The term ‘low income oil-producing country’ means 
a low-income country that produces an average of 
not less than 100,000 barrels of oil or equivalent per 
day based on the most recent information available 
by the Energy Information Administration of the 
Department of Energy. 
‘‘(3) OIL.—The term ‘oil’ includes crude oil, 
natural gas plant liquids, other petroleum-based liq-
uids, and petroleum-based refinery byproducts. 
‘‘(4) UNITED STATES ECONOMIC ASSISTANCE.— 
The term ‘United States economic assistance’ means 
any of the following:
‘‘(A) Bilateral economic, development, or 
technical assistance (other than military assist-
ance, humanitarian assistance, or assistance to 
prevent, treat, and monitor HIV/AIDS) pro-
vided by any department or agency of the 
United States Government to a foreign country 
under any program, project, or activity that is 
contained within the major budget functional 
category 150 (relating to International Affairs), 
including assistance under— 
‘‘(i) chapter 1 of part I of the Foreign 
Assistance Act of 1961 (relating to devel-
opment assistance); 
‘‘(ii) chapter 10 of part I of that Act 
(relating to the Development Fund for Af-
rica); 
‘‘(iii) chapter 11 of part I of that Act 
(relating to assistance for the independent 
states of the former Soviet Union); 
‘‘(iv) chapter 12 of part I of that Act 
(relating to assistance for the countries of 
the South Caucasus and Central Asia re-
gion);
‘‘(v) chapter 4 of part II of that Act 
(relating to the Economic Support Fund); 
or 
‘‘(vi) the Support for East European 
Democracy (SEED) Act of 1989. 
‘‘(B) Bilateral economic, development, or 
technical assistance (other than military assist-
ance, humanitarian assistance, or assistance to 
prevent, treat, and monitor HIV/AIDS) pro-
vided by any department or agency of the 
United States Government to a foreign country 
under any program, project, or activity that is 
contained within any of the following major 
budget functional categories: 
‘‘(i) 270 (relating to Energy). 
‘‘(ii) 300 (relating to Natural Re-
sources and the Environment), including 
programs, projects, and activities of the 
Environmental Protection Agency, the De-
partment of the Interior, and the United 
States Army Corps of Engineers). 
‘‘(iii) 350 (relating to Agriculture), in-
cluding assistance provided under title I of 
the Agricultural Trade Development and 
Assistance Act of 1954, the Food for
Progress program, and other programs ad-
ministered by the Department of Agri-
culture, such as programs administered by 
the Commodity Credit Corporation. 
‘‘(iv) 370 (relating to Commerce and 
Housing Credit). 
‘‘(v) 400 (relating to Transportation). 
‘‘(vi) 500 (relating to Education, 
Training, Employment, and Social Serv-
ices). 
‘‘(vii) 550 (relating to Health). 
‘‘(viii) 750 (relating to the Adminis-
tration of Justice). 
‘‘(ix) 800 (relating to the General 
Government). 
‘‘(b) IDENTIFICATION; DETERMINATIONS.—Not later 
than October 1, 2005, and not later than each October 
1 thereafter, the President, acting through the Board of 
Directors of the Millennium Challenge Corporation— 
‘‘(1) shall identify all countries in the world 
that are low income oil-producing countries (as de-
fined in subsection (a)(1)); and 
‘‘(2) for each country identified under para-
graph (1)—
‘‘(A) shall determine whether or not the 
country scores in the top quartile of all low in-
come countries in each of the three indicators 
described in subsection (d), as required under 
subsection (c)(1)(A); and 
‘‘(B) shall determine whether or not the 
government of the country meets the require-
ments of subsection (e), as required under sub-
section (c)(1)(B). 
‘‘(c) LIMITATION ON ECONOMIC ASSISTANCE.— 
‘‘(1) LIMITATION.—Notwithstanding any other 
provision of law (other than a provision of this sec-
tion), United States economic assistance may be pro-
vided for fiscal year 2007 and each subsequent fiscal 
year for a low income oil-producing country only if 
the President, acting through the Board of Directors 
of the Millennium Challenge Corporation, determines 
that— 
‘‘(A) the country scores in the top quartile 
of all low income countries in each of the three 
indicators described in subsection (d); and 
‘‘(B) the government of the country meets 
the requirements of subsection (e). 
‘‘(2) RULE OF CONSTRUCTION.—The limitation 
on assistance under paragraph (1) shall not apply to
a low income oil-producing country that is deter-
mined by the Board of Directors of the Millennium 
Challenge Corporation to be an eligible country 
under section 607 of the Millennium Challenge Act 
of 2003 (22 U.S.C. 7706) and is identified as such 
by the Chief Executive Officer of the Corporation 
under section 608(d) of such Act (22 U.S.C. 
7707(d)). 
‘‘(d) INDICATORS.—The indicators referred to in sub-
section (c)(1)(A) are the following: 
‘‘(1) TOTAL EXPENDITURES ON HEALTH.—The 
amount expended by the government of the country 
at all levels on health divided by the gross domestic 
product of the country. 
‘‘(2) TOTAL EXPENDITURES ON PRIMARY EDU-
CATION.—The amount expended by the government 
of the country at all levels on primary education di-
vided by the gross domestic product of the country. 
‘‘(3) 
PRIMARY
EDUCATION
COMPLETION 
RATE.—The number of students who complete pri-
mary education divided by the total population of in-
dividuals of the same age in the country. 
‘‘(e) REQUIREMENTS.—The requirements referred to 
in subsection (c)(1)(B) are the following:
‘‘(1) TRANSPARENCY RELATING TO OIL REVE-
NUES.—The government of the country makes pub-
licly available information on— 
‘‘(A) the amount of revenues received by 
the government through the production of oil in 
the country for the preceding calendar year, 
whether through royalties, rents, taxes, cus-
toms, duties, or otherwise; and 
‘‘(B) the allocation of such revenues among 
the various departments and agencies of the 
government. 
‘‘(2) ALLOCATION AND EXPENDITURE OF OIL 
REVENUES.—The government of the country allo-
cates and expends an appropriate amount of the rev-
enues referred to in paragraph (1) on education, 
food and nutrition assistance, and public health pro-
grams for the people of the country. 
‘‘(3) UN CONVENTION AGAINST CORRUPTION.— 
The country is a signatory to the United Nations 
Convention Against Corruption (Document A/58/ 
422), as adopted by the United Nations General As-
sembly on October 31, 2003. 
‘‘(f) REPORT.— 
‘‘(1) IN GENERAL.—Not later than October 1, 
2006, and not later than October 1 of each year
thereafter, the President, acting through the Board 
of Directors of the Millennium Challenge Corpora-
tion, shall prepare and transmit to Congress a re-
port that contains— 
‘‘(A) for the fiscal year beginning on the 
applicable October 1— 
‘‘(i) the identification each low income 
oil-producing country, as required under 
subsection (b)(1); and 
‘‘(ii) the determinations with respect 
to each such low income oil-producing 
country, as required under subparagraphs 
(A) and (B) of subsection (b)(2); and 
‘‘(B) for the prior fiscal year, an identifica-
tion of each low income oil-producing country 
that received United States economic assistance 
by reason of the application of subsection (c)(1) 
and the amounts and purposes of such assist-
ance. 
‘‘(2) SPECIAL
RULE
FOR
INITIAL
REPORT.— 
The requirement to include information described in 
subparagraph (B) of paragraph (1) shall not apply 
to the initial report required to be submitted under 
such paragraph.’’.
SEC. 4. LIMITATION ON UNITED STATES SUPPORT FOR 
MULTILATERAL ASSISTANCE FOR CERTAIN 
COUNTRIES. 
The Bretton Woods Agreements Act (22 U.S.C. 286– 
286oo) is amended by adding at the end the following: 
‘‘SEC. 64. LIMITATION ON UNITED STATES SUPPORT FOR 
MULTILATERAL ASSISTANCE FOR CERTAIN 
COUNTRIES. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Directors at the Fund and at the 
Bank to use the voice, vote, and influence of the United 
States to oppose the making of a loan by the Fund or 
the Bank, respectively, to the government of any country 
not eligible to receive United States economic assistance 
by reason of section 620K of the Foreign Assistance Act 
of 1961.’’. 
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