IV
104TH CONGRESS
1ST SESSION
H. CON. RES. 18
Expressing the sense of the Congress that United States investors, lenders,
and corporations should assume the full measure of risk and responsibil-
ity for their investments and loans in Mexico since the devaluation
of the peso on December 21, 1994, and that loan guarantees that
are backed by the full faith and credit of the United States and that
could result in any direct or indirect financial obligation on the part
of United States taxpayers should not be provided to the Mexican
Government.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 24, 1995
Mr. SANDERS (for himself, Mr. DEFAZIO, and Mr. MILLER of California) sub-
mitted the following concurrent resolution; which was referred to the
Committee on Banking and Financial Services
CONCURRENT RESOLUTION
Expressing the sense of the Congress that United States
investors, lenders, and corporations should assume the
full measure of risk and responsibility for their invest-
ments and loans in Mexico since the devaluation of the
peso on December 21, 1994, and that loan guarantees
that are backed by the full faith and credit of the United
States and that could result in any direct or indirect
financial obligation on the part of United States tax-
payers should not be provided to the Mexican Govern-
ment.
•HCON 18 IH
Whereas United States investors, lenders, and corporations in
the private sector are to assume the risks and respon-
sibilities associated with free market economics and free
trade policies without government interference and with-
out foisting those risks and responsibilities on United
States taxpayers directly or indirectly;
Whereas many United States investors, lenders, and corpora-
tions profited greatly as values in Mexican stocks rose on
average 118 percent in dollar terms in 1991 and 49 per-
cent in 1993;
Whereas the stability of the Mexican economy and political
system has been shaken since January 1994 by an indig-
enous peasant rebellion in the Mexican State of Chiapas,
2 high-visibility political assassinations, and a tumultuous
election campaign;
Whereas Mexican foreign reserves declined during 1994 from
$30,000,000,000 to $6,000,000,000;
Whereas the Mexican Government deceived investors, lenders,
and corporations by holding the peso steady throughout
1994 despite its growing overvaluation;
Whereas Mexican Government officials, on December 21,
1994, abruptly decided to ‘‘free float’’ the peso, despite
giving assurances to the contrary to United States finan-
cial leaders less than 1 week earlier, which has resulted
in a 35 percent devaluation of the peso relative to the
United States dollar during the ensuing month;
Whereas this sudden devaluation of the peso, the latest in a
series of frequent devaluations during the past 30 years,
represents an immediate and draconian 35 percent de-
cline in the standard of living of the Mexican people, es-
•HCON 18 IH
pecially for the 30 percent of Mexican workers who earn
$1,680 a year or less;
Whereas many wealthy Mexicans moved substantial sums of
their own money out of Mexican holdings just prior to
this most recent devaluation of the peso and continue to
do so;
Whereas the devaluation of the peso will greatly encourage
multinational corporations to invest and produce more in
Mexico because their dollars now will buy substantially
more Mexican goods and services than before, including
cheap, unprotected Mexican labor, thus causing the loss
of additional United States jobs and discouraging new in-
vestment and job creation in the United States;
Whereas all Mexican consumers now must also pay dramati-
cally increased prices as much as 30 percent higher for
basic foodstuffs such as cooking oil and grains, which is
certain to sow the seeds of greater social and political un-
rest;
Whereas the foreign debt of Mexico currently exceeds
$160,000,000,000;
Whereas 
nearly 
$30,000,000,000 
worth 
of 
Mexican
‘‘tesobonos’’ or short-term dollar securities become due in
1995;
Whereas the international financial community is not meeting
its responsibilities and committing proportionate re-
sources to redress the financial peril precipitated by the
most recent and sudden devaluation of the peso;
Whereas the national debt of the United States exceeds
$4,000,000,000,000 and continues to climb steadily every
year;
•HCON 18 IH
Whereas during the past decade American taxpayers were
forced to provide more than $150,000,000,000 to cover
the costs of the bankruptcies of hundreds of savings and
loan institutions in the United States that were ruined by
reckless investors and irresponsible financial managers
who escaped Federal oversight;
Whereas the United States Government continues to spend
far more every year beyond the revenues collected;
Whereas many proposals are pending before the Congress to
eliminate scores of existing Federal programs and to dra-
matically reduce funding for many other programs in
order to reduce the financial burden on United States
taxpayers; and
Whereas the President and the Secretary of the Treasury
have already extended a $9,000,000,000 line of credit to
bolster the peso without adequate consultation and de-
bate in the Congress: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That it is the sense of the Congress that—
(1) United States investors, lenders, and cor-
porations in the private sector should assume the
full measure of risk and responsibility for their in-
vestments and loans in Mexico since the devaluation
of the peso on December 21, 1994; and
(2) loan guarantees that are backed by the full
faith and credit of the United States and that could
result in any direct or indirect financial obligation
on the part of United States taxpayers should not be