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House Calendar No. 24
104TH CONGRESS
1ST SESSION
H. RES. 80
[Report No. 104–53]
Requesting the President to submit information to the House of Representa-
tives concerning actions taken through the exchange stabilization fund
to strengthen the Mexican peso and stabilize the economy of Mexico.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 10, 1995
Ms. KAPTUR (for herself, Mr. ABERCROMBIE, Mr. DEFAZIO, Mr. EVANS, Mr.
HUNTER, Mr. KLINK, Mr. LIPINSKI, Mr. ROHRABACHER, Mr. SANDERS,
Mr. TAYLOR of Mississippi, Mrs. THURMAN, Mr. VISCLOSKY, and Ms.
DANNER) submitted the following resolution; which was referred to the
Committee on Banking and Financial Services
FEBRUARY 27, 1995
Additional sponsors: Mrs. CHENOWETH, Mr. DUNCAN, Mrs. MINK of Hawaii,
Mr. TALENT, Mr. TRAFICANT, Mr. STEARNS, Mr. BURTON of Indiana,
Mr. MYERS of Indiana, Mr. HUTCHINSON, Mr. BAKER of California, Mr.
DORNAN, Mr. KINGSTON, Mr. DELLUMS, Mr. FUNDERBURK, Mr. FOLEY,
Mr. FILNER, Mr. GORDON, Mr. HOLDEN, and Mr. BROWN of Ohio
FEBRUARY 27, 1995
Reported with an amendment, referred to the House Calendar, and ordered
to be printed
[Strike out all after the resolving clause and insert the part printed in italic]
[For text of introduced resolution, see copy of resolution as introduced on February 10, 1995]
HRES 80 RH1S
RESOLUTION
Requesting the President to submit information to the House
of Representatives concerning actions taken through the
exchange stabilization fund to strengthen the Mexican
peso and stabilize the economy of Mexico.
Resolved, That the President is hereby requested to pro-
vide to the House of Representatives (consistent with the
rules of such House), not later than 14 days after the adop-
tion of this resolution, the following documents in the pos-
session of the executive branch, if not inconsistent with the
public interest:
(1) Any document concerning—
(A) the condition of the Mexican economy;
and
(B) any consultations between the Govern-
ment of Mexico and the Secretary of the Treas-
ury (or any designee of the Secretary), the Inter-
national Monetary Fund, or the Bank for Inter-
national Settlements.
(2) Any document containing—
(A) a description of the activities of the
central bank of Mexico, including the reserve po-
sitions of such central bank and data relating to
the functioning of Mexican monetary policy;
HRES 80 RH1S
(B) information regarding the implementa-
tion and the extent of wage, price, and credit
controls in the Mexican economy;
(C) a complete documentation of Mexican
tax policy and any proposed changes to such
policy;
(D) a description of all financial trans-
actions, both inside and outside of Mexico, di-
rectly involving funds disbursed from the ex-
change stabilization fund and the International
Monetary Fund, including transactions with—
(i) individuals;
(ii) partnerships;
(iii) joint ventures; and
(iv) corporations;
(E) a list of planned or pending regulations
of the Government of Mexico affecting the private
sector of the Mexican economy; and
(F) any efforts to privatize public sector en-
tities in Mexico.
(3) Any document concerning any legal analysis
with regard to the authority of the President or the
Secretary of the Treasury under section 5302 of title
31, United States Code, the Bretton Woods Agree-
ments Act, the Special Drawing Rights Act, the Gold
HRES 80 RH1S
Reserve Act of 1934, or any other law or legal author-
ity to use the stabilization fund to implement the
President’s proposed Mexican support package.
(4) Any document concerning any legal opinion
regarding the applicability or nonapplicability of the
provisions of the Federal Credit Reform Act of 1990
to the exchange stabilization fund.
(5) Any document concerning any agreement be-
tween the United States and the Government of Mex-
ico (or any other appropriate Mexican entity) to pro-
vide assured sources of repayment for all payments by
the United States in connection with any short-, in-
termediate-, or long-term credit facility made avail-
able to Mexico after December 31, 1994.
(6) Any document concerning the implementa-
tion by the President and the Secretary of the Treas-
ury (or any designee of the Secretary) of the author-
ity under section 5302 of title 31, United States Code,
with respect to any credit facility described in para-
graph (5).
(7) Any document concerning efforts by the
international community to stabilize the economy of
Mexico and the current status of negotiations with
other countries to improve the capacity of inter-
national institutions to handle similar crises.
HRES 80 RH1S
(8) Any document concerning the extent to which
Mexico is complying with the terms and conditions
agreed to in connection with the exercise of the au-
thority under section 5302 of title 31, United States
Code, with respect to any credit facility described in
paragraph (5), including any document concerning
the extent to which—
(A) the Government of Mexico has agreed to
use the proceeds of any loan which has been
made, or any security for which any guarantee
has been issued, through any such facility to help
strengthen the Mexican peso and help stabilize fi-
nancial and exchange markets by facilitating the
refinancing or redemption of short-term debt in-
struments issued by the Government of Mexico;
(B) the Government of Mexico has agreed to
provide—
(i) a comprehensive financial plan
which includes a description of the intended
use of any such loan or security; and
(ii) ongoing reports on the implemen-
tation of the financial plan while any such
loan or security is outstanding;
(C) the Government of Mexico is respecting
the autonomy of the central bank of Mexico and
HRES 80 RH1S
the mandate of such bank to seek stability with
respect to the purchasing power of the Mexican
peso;
(D) the central bank of Mexico is pursuing
a noninflationary monetary and credit policy
that controls credit expansion and the growth of
the Mexican money supply in order to maintain
the Mexican peso as a strong currency;
(E) the central bank of Mexico is providing
on a periodic basis to the Board of Governors of
the Federal Reserve System and other appro-
priate governmental entities information nec-
essary to make an assessment with respect to the
policy described in subparagraph (D), including
central bank money supply and monetary policy
data;
(F) the Government of Mexico is implement-
ing the privatization policy established by such
Government to transfer enterprises currently
owned or controlled by the Government to pri-
vate ownership;
(G) the Government of Mexico continues to
permit entry of foreign direct investment into
Mexico and the repatriation of investments from
Mexico by United States nationals; and
HRES 80 RH1S
(H) the Government of Mexico is pursuing
market-oriented measures to stem the flow of do-
mestically owned capital from Mexico.
(9) Any document concerning any analysis of
the resources which the International Monetary Fund
has agreed to make available in response to the Mexi-
can financial crisis.
(10) Any document concerning—
(A) the percentage of the resources which the
International Monetary Fund has agreed to
make available in response to the Mexican finan-
cial crisis which are attributable to capital con-
tributions to such Fund by the United States;
and
(B) the extent to which the participation of
the International Monetary Fund in inter-
national efforts to strengthen the Mexican peso
and stabilize the economy of Mexico is likely to
require additional contributions to such Fund by
the member states of the Fund, including the
United States.
(11) Any document concerning any agreement
between the United States and the Government of
Mexico detailing the fee structure and the terms and
conditions under which loans, loan guarantees, and
HRES 80 RH1S
other financial support may be made available to
Mexico through the stabilization fund established
under section 5302 of title 31, United States Code, in-
cluding—
(A) any document concerning background
materials on the assessment of the Mexican econ-
omy and any United States Government ration-
alization for pressing the central bank of Mexico
to increase interest rates from 40 percent to 50
percent;
(B) any document concerning the frame-
work agreement entered into on or about Feb-
ruary 21, 1995, which serves as the umbrella ac-
cord for the provision of any such loan, loan
guarantee, or other financial support;
(C) any document concerning the medium-
term exchange stabilization agreement entered
into on or about February 21, 1995, which speci-
fies the terms and conditions for medium-term
swap transactions between the United States and
Mexico;
(D) any document concerning the guarantee
agreement entered into on or about February 21,
1995, which specifies the terms and conditions
HRES 80 RH1S
for the issuance of guarantees by the United
States of debt securities issued by Mexico; and
(E) any document concerning the oil pro-
ceeds facility agreement entered into on or about
February 21, 1995, which establishes a mecha-
nism to provide an assured source of repayment
of United States resources.
(12) Any document concerning the assured
source of repayment to the United States for any
short-, intermediate-, or long-term credit facility
made available to Mexico after December 31, 1994.
(13) Any document concerning the net worth of
Pemex, the historical annual revenues of Pemex, the
projected annual revenues during the 5-year period
beginning on the date of the adoption of this resolu-
tion, and the extent to which the proceeds from the
sale of Mexican oil to customers within Mexico or out-
side of Mexico—
(A) are required to be paid to the Govern-
ment of Mexico as taxes or as payments in lieu
of taxes; or
(B) have been pledged as collateral for the
repayment of any loans or other extensions of
credit to the Government of Mexico or to Pemex
HRES 80 RH1S
other than any credit facility described in para-
graph (12).
(14) Any document concerning the value of any
oil the proceeds from the sale of which are pledged to
assure the repayment of any financial assistance pro-
vided by the United States to Mexico, the documenta-
tion received by the United States in connection with
such pledge, and the manner in which the United
States may exercise any rights under such pledge to
obtain the proceeds as repayment for losses incurred.
(15) Any document concerning any assurances
given by the Government of Mexico to the United
States Government with respect to changes in past
economic policies or the adoption of a new economic
plan.
(16) Any document concerning the decision by
the President to use the assets of the exchange sta-
bilization fund established under section 5302 of title
31, United States Code, in connection with any
short-, intermediate-, or long-term credit facility
made available to Mexico after December 31, 1994.
(17) Any document concerning the criteria used
by the President or the Secretary of the Treasury (or
any designee of the Secretary) in making any deci-
sion to use the assets of the exchange stabilization