SEC. 3. SALE OF FOREIGN CURRENCY TO UNITED STATES
CORPORATIONS.
(a) IN GENERAL.—The Secretary of the Treasury is
directed to sell the dollars of the previously indebted coun-
tries to corporations, whose national or international head-
quarters are located within the United States, under the
following conditions:
(1) The moneys cannot be exchanged for other
currency, but must be used for long-term active in-
vestments (as defined by the Internal Revenue Code
of 1986) in businesses within that country.
(2) The currency must be sold to the public at
a discount depending upon the ability of the in-
debted country to pay. The debt, however, must be
sold at a minimum discount of 15 percent to encour-
age the purchase of the foreign currency.
(3) Each year that the money is invested in a
developing country, the profit realized by a corpora-
tion from that investment shall be taxed at the cap-
ital gains tax rate (as defined by the Internal Rev-
enue Code of 1986). This subsection shall be in
force for 25 years from the date of the enactment
of this Act.
(4) The Secretary of the Treasury is hereby au-
thorized to decide when, and if, the foreign currency
is sold, and to what part of the deficit the income
from the sale thereof should be repaid, and when,
and under what conditions.
(b) USE OF CURRENT PROCEDURES.—The Secretary
of the Treasury may utilize current procedures of the De-
partment of the Treasury for selling its monetary instru-
ments to sell this debt.
SEC. 4. UNITED STATES DEFICIT REDUCTION.
The proceeds from the sale of the currency shall be
used as payment toward the United States deficit.
SEC. 5. EXCEPTIONS.
This Act does not apply to any country that is en-
gaged in armed conflict with the United States, nor does
it apply to any developed country. A country shall not be
eligible for repayment of its debt under this Act if the gov-
ernment of the country—
(1) has an excessive level of military expendi-
tures;
(2) has repeatedly provided support for acts of
international terrorism, as determined by the Sec-
retary of State under section 6(j)(1) of the Export
Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)) or section 620a(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371(a)) since January
1, 1999;
(3) is failing to cooperate on international nar-
cotics control matters; or
(4) including its military or other security
forces, engages in a consistent pattern or gross vio-
lations of internationally recognized human rights.
SEC. 6. RULE OF CONSTRUCTION.
Except as the President may otherwise determine for
reasons of national security, relief provided under this Act
shall not be considered to be assistance for purposes of
any provision of law limiting assistance to a country.
SEC. 7. REPORTING REQUIREMENTS.
(a) IN GENERAL.—Not later than December 31,
2000, the President shall prepare and transmit to the ap-
propriate congressional committees a report, which shall
be made available to the public, concerning the relief pro-
vided under this Act, and the progress made in accom-
plishing the purposes of this Act, for the prior fiscal year.
(b) DEFINITION.—In this section, the term ‘‘appro-
priate congressional committees’’ means—
(1) the Committee on International Relations of
the House of Representatives; and
(2) the Committee on Foreign Relations of the
Senate.
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