I
105TH CONGRESS
1ST SESSION
H. R. 2870
To amend the Foreign Assistance Act of 1961 to facilitate protection of
tropical forests through debt reduction with developing countries with
tropical forests.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 7, 1997
Mr. PORTMAN (for himself, Mr. KASICH, and Mr. HAMILTON) introduced the
following bill; which was referred to the Committee on International Relations
A BILL
To amend the Foreign Assistance Act of 1961 to facilitate
protection of tropical forests through debt reduction with
developing countries with tropical forests.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEBT REDUCTION FOR DEVELOPING COUN-
TRIES WITH TROPICAL FORESTS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by adding at the end the following:
‘‘PART V—DEBT REDUCTION FOR DEVELOPING
COUNTRIES WITH TROPICAL FORESTS
‘‘SEC. 801. SHORT TITLE.
‘‘This part may be cited as the ‘Tropical Forest Con-
servation Act of 1998’.
‘‘SEC. 802. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress finds the following:
‘‘(1) It is the established policy of the United
States to support and seek protection of tropical for-
ests around the world.
‘‘(2) Tropical forests provide a wide range of
benefits to humankind by—
‘‘(A) harboring a major share of the
Earth’s biological and terrestrial resources,
which are the basis for developing pharma-
ceutical products and revitalizing agricultural
crops;
‘‘(B) playing a critical role as carbon sinks
in reducing greenhouse gases in the atmos-
phere, thus moderating potential global climate
change; and
‘‘(C) regulating hydrological cycles on
which far-flung agricultural and coastal re-
sources depend.
‘‘(3) International negotiations and assistance
programs to conserve forest resources have pro-
liferated over the past decade, but the rapid rate of
tropical deforestation continues unabated.
‘‘(4) Developing countries with urgent needs for
investment and capital for development have allo-
cated a significant amount of their forests to logging
concessions.
‘‘(5) Poverty and economic pressures on the
populations of developing countries have, over time,
resulted in clearing of vast areas of forest for con-
version to agriculture, which is often unsustainable
in the poor soils underlying tropical forests.
‘‘(6) Debt reduction can reduce economic pres-
sures on developing countries and result in increased
protection for tropical forests.
‘‘(b) PURPOSES.—The purposes of this part are—
‘‘(1) to recognize the values received by United
States citizens from protection of tropical forests;
‘‘(2) to facilitate greater protection of tropical
forests (and to give priority to protecting tropical
forests with the highest levels of biodiversity and
under the most severe threat) by providing for the
alleviation of debt in countries where tropical forests
are located, thus allowing the use of additional re-
sources to protect these critical resources and reduce
economic pressures that have led to deforestation;
‘‘(3) to ensure that resources freed from debt in
such countries are targeted to protection of tropical
forests and their associated values; and
‘‘(4) to rechannel existing resources to facilitate
the protection of tropical forests.
‘‘SEC. 803. ESTABLISHMENT OF THE FACILITY.
‘‘There is established in the Department of the
Treasury an entity to be known as the ‘Tropical Forest
Facility’ for the purpose of providing for the administra-
tion of debt reduction in accordance with this part.
‘‘SEC. 804. ELIGIBILITY FOR BENEFITS.
‘‘(a) IN GENERAL.—To be eligible for benefits from
the Facility under this part, a country shall be a develop-
ing country with a tropical forest—
‘‘(1) whose government meets the requirements
applicable to Latin American or Caribbean countries
under paragraphs (1) through (5) and (7) of section
703(a) of this Act; and
‘‘(2) that has put in place major investment re-
forms in conjunction with a loan of the appropriate
international development bank for the region in
which the country is located or otherwise is imple-
menting, or is making significant progress toward,
an open investment regime.
‘‘(b) ELIGIBILITY DETERMINATIONS.—
‘‘(1) IN GENERAL.—Consistent with subsection
(a), the President shall determine whether a country
is eligible to receive benefits under this part.
‘‘(2) 
CONGRESSIONAL
NOTIFICATION.—The
President shall notify the appropriate congressional
committees of his intention to designate a country as
an eligible country at least 15 days in advance of
any formal determination.
‘‘SEC. 805. REDUCTION OF DEBT OWED TO THE UNITED
STATES AS A RESULT OF CONCESSIONAL
LOANS UNDER THE FOREIGN ASSISTANCE
ACT OF 1961.
‘‘(a) AUTHORITY TO REDUCE DEBT.—
‘‘(1) AUTHORITY.—The President may reduce
the amount owed to the United States (or any agen-
cy of the United States) that is outstanding as of
January 1, 1997, as a result of concessional loans
made to an eligible country by the United States
under part I of this Act, chapter 4 of part II of this
Act, or predecessor foreign economic assistance leg-
islation.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
For the reduction of any debt pursuant to this sec-
tion, there are authorized to be appropriated to the
President—
‘‘(A) $25,000,000 for fiscal year 1999;
‘‘(B) $75,000,000 for fiscal year 2000; and
‘‘(C) $100,000,000 for fiscal year 2001.
‘‘(3) CERTAIN PROHIBITIONS INAPPLICABLE.—
‘‘(A) IN GENERAL.—A reduction of debt
pursuant to this section shall not be considered
assistance for purposes of any provision of law
limiting assistance to a country.
‘‘(B) ADDITIONAL
REQUIREMENT.—The
authority of this section may be exercised not-
withstanding section 620(r) of this Act or sec-
tion 321 of the International Development and
Food Assistance Act of 1975.
‘‘(b) IMPLEMENTATION OF DEBT REDUCTION.—
‘‘(1) IN GENERAL.—Any debt reduction pursu-
ant to subsection (a) shall be accomplished at the di-
rection of the Facility by the exchange of a new obli-
gation for obligations of the type referred to in sub-
section (a) outstanding as of the date specified in
subsection (a)(1).
‘‘(2) EXCHANGE OF OBLIGATIONS.—
‘‘(A) IN GENERAL.—The Facility shall no-
tify the agency primarily responsible for admin-
istering part I of this Act of an agreement en-
tered into under paragraph (1) with an eligible
country to exchange a new obligation for out-
standing obligations.
‘‘(B) ADDITIONAL REQUIREMENT.—At the
direction of the Facility, the old obligations that
are the subject of the agreement shall be can-
celed and a new debt obligation for the country
shall be established relating to the agreement,
and the agency primarily responsible for admin-
istering part I of this Act shall make an adjust-
ment in its accounts to reflect the debt reduc-
tion.
‘‘(c) ADDITIONAL TERMS
AND CONDITIONS.—The
following additional terms and conditions shall apply to
the reduction of debt under subsection (a)(1) in the same
manner as such terms and conditions apply to the reduc-
tion of debt under section 704(a)(1) of this Act:
‘‘(1) The provisions relating to repayment of
principal under section 705 of this Act.
‘‘(2) The provisions relating to interest on new
obligations under section 706 of this Act.
‘‘SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED
STATES AS A RESULT OF CREDITS EXTENDED
UNDER TITLE I OF THE AGRICULTURAL
TRADE DEVELOPMENT AND ASSISTANCE ACT
OF 1954.
‘‘(a) AUTHORITY TO REDUCE DEBT.—
‘‘(1) AUTHORITY.—Notwithstanding any other
provision of law, the President may reduce the
amount owed to the United States (or any agency of
the United States) that is outstanding as of January
1, 1997, as a result of any credits extended under
title I of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to
a country eligible for benefits from the Facility.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
For the reduction of any debt pursuant to this sec-
tion, there are authorized to be appropriated to the
President—
‘‘(A) $25,000,000 for fiscal year 1999;
‘‘(B) $50,000,000 for fiscal year 2000; and
‘‘(C) $50,000,000 for fiscal year 2001.
‘‘(b) IMPLEMENTATION OF DEBT REDUCTION.—
‘‘(1) IN GENERAL.—Any debt reduction pursu-
ant to subsection (a) shall be accomplished at the di-
rection of the Facility by the exchange of a new obli-
gation for obligations of the type referred to in sub-
section (a) outstanding as of the date specified in
subsection (a)(1).
‘‘(2) EXCHANGE OF OBLIGATIONS.—
‘‘(A) IN GENERAL.—The Facility shall no-
tify the Commodity Credit Corporation of an
agreement entered into under paragraph (1)
with an eligible country to exchange a new obli-
gation for outstanding obligations.
‘‘(B) ADDITIONAL REQUIREMENT.—At the
direction of the Facility, the old obligations that
are the subject of the agreement may be can-
celed and a new debt obligation may be estab-
lished for the country relating to the agreement,
and the Commodity Credit Corporation shall
make an adjustment in its accounts to reflect
the debt reduction.
‘‘(c) ADDITIONAL TERMS
AND CONDITIONS.—The
following additional terms and conditions shall apply to
the reduction of debt under subsection (a)(1) in the same
manner as such terms and conditions apply to the reduc-
tion of debt under section 604(a)(1) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1738c):
‘‘(1) The provisions relating to repayment of
principal under section 605 of such Act.
‘‘(2) The provisions relating to interest on new
obligations under section 606 of such Act.
‘‘SEC. 807. SALE, REDUCTION, OR CANCELLATION OF LOANS
MADE BY THE UNITED STATES UNDER THE
EXPORT-IMPORT BANK ACT OF 1945.
‘‘(a) AUTHORITY TO SELL, REDUCE, OR CANCEL
LOANS.—
‘‘(1) AUTHORITY.—Notwithstanding any other
provision of law, the President may, in accordance
with this section, sell to any eligible purchaser any
loan or portion thereof made before January 1,
1997, to any eligible country or any agency thereof
pursuant to the Export-Import Bank Act of 1945
(12 U.S.C. 635 et seq.), or, on receipt of payment
from an eligible purchaser, reduce or cancel such
loan or portion thereof.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
For the sale, reduction, or cancellation of loans or
portion thereof pursuant to this section, there are
authorized to be appropriated to the President
$75,000,000 for fiscal year 2001.
‘‘(b) IMPLEMENTATION OF DEBT REDUCTION.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the President shall, in accordance
with this section, establish the terms and conditions
‘‘(2) CONSULTATION.—In the negotiation of
such an Agreement, the Secretary shall consult with
the Tropical Forest Board in accordance with sec-
tion 810.
‘‘(b) CONTENTS OF AGREEMENT.—The requirements
contained in section 708(b) of this Act (relating to con-
tents of an agreement) shall apply to a Agreement in the
same manner as such requirements apply to an Americas
Framework Agreement.
‘‘(c) ADMINISTERING BODY.—
‘‘(1) IN
GENERAL.—Amounts disbursed from
the Fund in each beneficiary country shall be admin-
istered by a body constituted under the laws of that
country.
‘‘(2) COMPOSITION.—
‘‘(A) IN
GENERAL.—The administering
body shall consist of—
‘‘(i) one or more individuals appointed
by the United States Government;
‘‘(ii) one or more individuals ap-
pointed by the government of the bene-
ficiary country; and
‘‘(iii) individuals who represent a
broad range of—
‘‘(I) environmental nongovern-
mental organizations active in the
beneficiary country;
‘‘(II) local community develop-
ment nongovernmental organizations
of the beneficiary country; and
‘‘(III) scientific or academic or-
ganizations or institutions of the ben-
eficiary country.
‘‘(B) ADDITIONAL REQUIREMENT.—A ma-
jority of the members of the administering body
shall be individuals described in subparagraph
(A)(iii).
‘‘(3) 
RESPONSIBILITIES.—The 
requirements
contained in section 708(c)(3) of this Act (relating
to responsibilities of the administering body) shall
apply to an administering body described in para-
graph (1) in the same manner as such requirements
apply to an administering body described in section
708(c)(1) of this Act.
‘‘(d) ELIGIBLE ACTIVITIES.—Amounts deposited in a
Fund shall be used to provide grants to preserve, main-
tain, and restore the tropical forests in the beneficiary
country, including one or more of the following activities:
‘‘(1) Establishment, restoration, protection, and
maintenance of parks and reserves.
‘‘(2) Development and implementation of sound
systems of natural resource management, including
land and ecosystem management practices.
‘‘(3) Training programs to strengthen conserva-
tion institutions and increase scientific, technical,
and managerial capacities of individuals and organi-
zations involved in conservation efforts.
‘‘(4) Restoration, protection, or sustainable use
of diverse animal and plant species.
‘‘(5) Protection of the world’s stratosphere from
the build-up of global warming gases.
‘‘(6) Development and support of individuals
living in or near a tropical forest, including the cul-
tures of such individuals.
‘‘(e) GRANT RECIPIENTS.—
‘‘(1) IN GENERAL.—Grants made from a Fund
shall be made to—
‘‘(A) nongovernmental environmental, con-
servation, and indigenous peoples organizations
active in the beneficiary country;
‘‘(B) other appropriate local or regional
entities; and
‘‘(C) in exceptional circumstances, the gov-
ernment of the beneficiary country.
‘‘(2) PRIORITY.—In providing grants under
paragraph (1), priority shall be given to projects
that are run by nongovernmental organizations and
other private entities and that involve local commu-
nities in their planning and execution.
‘‘(f) REVIEW OF LARGER GRANTS.—Any grant of
more than $100,000 from a Fund shall be subject to veto
by the Government of the United States or the govern-
ment of the beneficiary country.
‘‘(g) ELIGIBILITY CRITERIA.—In the event that a
country ceases to meet the eligibility requirements set
forth in section 804(a), as determined by the President
pursuant to section 804(b), then grants from the Fund
for that country may only be made to nongovernmental
organizations until such time as the President determines
that such country meets the eligibility requirements set
forth in section 804(a).
‘‘SEC. 810. TROPICAL FOREST BOARD.
‘‘(a) ESTABLISHMENT.—There is established a board
to be known as the ‘Tropical Forest Board’.
‘‘(b) MEMBERSHIP AND CHAIRPERSON.—
‘‘(1) MEMBERSHIP.—The Board shall be com-
posed of the following members appointed by the
President:
‘‘(A) Six representatives from the United
States Government, at least one of whom shall
be a representative of the Department of Agri-
culture.
‘‘(B) Five representatives from private
nongovernmental environmental, scientific, and
academic organizations with experience and ex-
pertise in preservation, maintenance, and res-
toration of tropical forests.
‘‘(2) CHAIRPERSON.—The Board shall be head-
ed by a chairperson who shall be appointed by the
President from among the representatives appointed
under paragraph (1)(A).
‘‘(c) DUTIES.—The Board—
‘‘(1) shall advise the Secretary of State on the
negotiations of Tropical Forest Agreements;
‘‘(2) shall ensure, in consultation with—
‘‘(A) the government of the beneficiary
country,
‘‘(B) nongovernmental organizations of the
beneficiary country,
‘‘(C) nongovernmental organizations of the
region (if appropriate),
‘‘(D) environmental, scientific, and aca-
demic leaders of the beneficiary country, and
‘‘(E) environmental, scientific, and aca-
demic leaders of the region (as appropriate),
that a suitable administering body is identified for
each Fund; and
‘‘(3) shall review the programs, operations, and
fiscal audits of each administering body.
‘‘SEC. 811. CONSULTATIONS WITH THE CONGRESS.
‘‘The President shall consult with the appropriate
congressional committees on a periodic basis to review the
operation of the Facility under this part and the eligibility
of countries for benefits from the Facility under this part.
‘‘SEC. 812. ANNUAL REPORTS TO THE CONGRESS.
‘‘(a) IN GENERAL.—Not later than December 31 of
each fiscal year, the President shall prepare and transmit
to the Congress an annual report concerning the operation
of the Facility for the prior fiscal year. Such report shall
include—
‘‘(1) a description of the activities undertaken
by the Facility during the previous fiscal year;
‘‘(2) a description of any Agreement entered
into under this part;
‘‘(3) a report on any Funds that have been es-
tablished under this part and on the operations of
such Funds; and
‘‘(4) a description of any grants that have been
provided by administering bodies pursuant to Agree-
ments under this part.
‘‘(b) SUPPLEMENTAL VIEWS IN ANNUAL REPORT.—
Not later than December 15 of each fiscal year, each mem-
ber of the Board shall be entitled to receive a copy of the
report required under subsection (a). Each member of the
Board may prepare and submit supplemental views to the
President on the implementation of this part by December
31 for inclusion in the annual report when it is transmit-
ted to Congress pursuant to this section.
‘‘SEC. 813. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADMINISTERING BODY.—The term ‘admin-
istering body’ means the entity provided for in sec-
tion 809(c).
‘‘(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means—
‘‘(A) the Committee on International Rela-
tions and the Committee on Appropriations of
the House of Representatives; and
‘‘(B) the Committee on Foreign Relations
and the Committee on Appropriations of the
Senate.
‘‘(3) BENEFICIARY COUNTRY.—The term ‘bene-
ficiary country’ means an eligible country with re-
spect to which the authority of section 805(a)(1),
806(a)(1), or 807(a)(1) is exercised.
‘‘(4) DEVELOPING COUNTRY WITH A TROPICAL
FOREST.—The term ‘developing country with a trop-
ical forest’ means—
‘‘(A)(i) a country that has a per capita in-
come of $725 or less in 1994 United States dol-
lars (commonly referred to as ‘low-income coun-
try’), as determined and adjusted on an annual
basis by the International Bank for Reconstruc-
tion and Development in its World Development
Report; or
‘‘(ii) a country that has a per capita in-
come of more than $725 but less than $8,956
in 1994 United States dollars (commonly re-
ferred to as ‘middle-income country’), as deter-
mined and adjusted on an annual basis by the
International Bank for Reconstruction and De-
velopment in its World Development Report;
and
‘‘(B) a country that contains at least one
tropical forest that is globally outstanding in
terms of its biological diversity or represents
one of the larger intact blocks of tropical for-
ests left, on a continental or global scale.
‘‘(5) ELIGIBLE COUNTRY.—The term ‘eligible
country’ means—
‘‘(A) for fiscal year 1999 and fiscal year
2000, the Republic of Bolivia, Brazil, Ecuador,
Guyana, the Republique de Cote d’Ivoire, the
Republic of Liberia, the Republic of Madagas-
car, the Republic of Indonesia, Papua New
Guinea, Peru, and the Philippines, if such coun-
try meets the criteria for designation by the
President under section 804; and
‘‘(B) for fiscal year 2001, a country des-
ignated by the President in accordance with
section 804.
‘‘(6) TROPICAL
FOREST
AGREEMENT.—The
term ‘Tropical Forest Agreement’ or ‘Agreement’
means a Tropical Forest Agreement provided for in
section 809.
‘‘(7) TROPICAL
FOREST
BOARD.—The term
‘Tropical Forest Board’ or ‘Board’ means the board
established by section 810.
‘‘(8) TROPICAL FOREST FACILITY.—The term
‘Tropical Forest Facility’ or ‘Facility’ means the
Tropical Forest Facility established in the Depart-
ment of the Treasury by section 803.
‘‘(9) TROPICAL
FOREST
FUND.—The term
‘Tropical Forest Fund’ or ‘Fund’ means a Tropical
Forest Fund provided for in section 808.’’.
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