IB
Union Calendar No. 269
105TH CONGRESS
2D SESSION
H. R. 3580
[Report No. 105–470]
Making supplemental appropriations and rescissions for the fiscal year ending
September 30, 1998, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 27, 1998
Mr. LIVINGSTON, from the Committee on Appropriations, reported the follow-
ing bill; which was committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
A BILL
Making supplemental appropriations and rescissions for the
fiscal year ending September 30, 1998, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
fiscal year ending September 30, 1998, and for other pur-
poses, namely:
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TITLE I
SUPPLEMENTAL APPROPRIATIONS
CHAPTER 1
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
From funds available to the Secretary of Agriculture
to provide compensation to agricultural producers and
other persons under section 105(b) of the Federal Plant
Pest Act (7 U.S.C. 150dd(b)), the Secretary may make
payments to any person who had, or in the future has,
wheat stored in a storage facility that was, or in the future
is, subject to an emergency action notice issued by the
Secretary relating to the presence or presumed presence
of Karnal bunt to compensate the person for economic
losses incurred as a result of the effect of the notice on
the operation of the storage facility.
DEPARTMENTAL ADMINISTRATION
For an additional amount for ‘‘Departmental Admin-
istration,’’ $4,300,000.
OFFICE OF THE GENERAL COUNSEL
For an additional amount for the Office of the Gen-
eral Counsel, $235,000.
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FARM SERVICE AGENCY
AGRICULTURAL CREDIT INSURANCE FUND PROGRAM
ACCOUNT
(DIRECT FARM OWNERSHIP LOANS)
For an additional amount for gross obligations for
the principal amount of direct farm ownership loans au-
thorized by 7 U.S.C. 1928–1929, to be available from
funds in the Agricultural Credit Insurance Fund,
$39,448,000. For an additional amount for the cost of di-
rect farm ownership loans authorized by 7 U.S.C. 1928–
1929, including the cost of modifying such loans as de-
fined in section 502 of the Congressional Budget Act of
1974, $5,144,000, to remain available until expended.
(GUARANTEED FARM OWNERSHIP LOANS)
For an additional amount for gross obligations of the
principal amount of unsubsidized guaranteed farm owner-
ship loans authorized by 7 U.S.C. 1928–1929, to be avail-
able from funds in the Agricultural Credit Insurance
Fund, $25,000,000. For an additional amount for the
‘‘Agricultural Credit Insurance Fund Program Account’’
for the cost of unsubsidized guaranteed farm ownership
loans authorized by 7 U.S.C. 1928–1929, including the
cost of modifying such loans as defined in section 502 of
the Congressional Budget Act of 1974, $967,000, to re-
main available until expended.
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(DIRECT FARM OPERATING LOANS)
For an additional amount for gross obligations for
the principal amount of direct farm operating loans au-
thorized by 7 U.S.C. 1928–1929, to be available from
funds in the Agricultural Credit Insurance Fund,
$9,528,000. For an additional amount for the ‘‘Agricul-
tural Credit Insurance Fund Program Account’’ for the
cost of direct farm operating loans authorized by 7 U.S.C.
1928–1929, including the cost of modifying such loans as
defined in section 502 of the Congressional Budget Act
of 1974, $626,000, to remain available until expended.
(GUARANTEED SUBSIDIZED FARM OPERATING LOANS)
For an additional amount for gross obligations for
the principal amount of guaranteed subsidized farm oper-
ating loans authorized by 7 U.S.C. 1928–1928, to be
available from funds in the Agricultural Credit Insurance
Fund, $40,000,000. For an additional amount for the
‘‘Agricultural Credit Insurance Fund Program Account’’
for the cost of guaranteed subsidized farm operating loans
authorized by 7 U.S.C. 1928–1929, including the cost of
modifying such loans as defined in section 502 of the Con-
gressional Budget Act of 1974, $3,374,000, to remain
available until expended.
(BOLL WEEVIL ERADICATION LOANS)
For additional gross obligations for the principal
amount of boll weevil eradication program loans author-
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ized by 7 U.S.C. 1989, to be available from funds in the
Agricultural Credit Insurance Fund, $18,814,000. For the
additional cost of boll weevil eradication program loans,
including the cost of modifying loans as defined in section
502 of the Congressional Budget Act of 1974, $222,000.
FOOD AND NUTRITION SERVICE
FOOD STAMP PROGRAM
Of the amounts made available under this heading
in Public Law 105–86, funds for employment and training
shall remain available until expended as authorized by sec-
tion 16(h)(1) of the Food Stamp Act, as amended.
DEPARTMENT OF HEALTH AND HUMAN
SERVICES
FOOD AND DRUG ADMINISTRATION
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and ex-
penses’’ from fees collected pursuant to section 736 of the
Federal Food, Drug, and Cosmetic Act, not to exceed
$15,596,000 to remain available until expended: Provided,
That fees derived from applications received during fiscal
year 1998 shall be credited to the appropriation current
in the year in which fees are collected and subject to the
fiscal year 1998 limitation.
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CHAPTER 2
DEPARTMENT OF STATE
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
ARREARAGE PAYMENTS
For an additional amount for payment of arrearages
to meet obligations of membership in the United Nations,
and to pay assessed expenses of international peacekeep-
ing activities, $505,000,000, to remain available until ex-
pended, of which $475,000,000 shall become available on
October 1, 1998, and $30,000,000 shall become available
on October 1, 1999: Provided, That none of the funds ap-
propriated or otherwise made available by this Act for pay-
ment of arrearages may be obligated or expended unless
such obligation or expenditure is expressly authorized by
law: Provided further, That none of the funds appropriated
or otherwise made available by this Act for payment of
arrearages may be obligated or expended until such time
as the share of the total of all assessed contributions for
the regular budget of the United Nations does not exceed
22 percent for any single United Nations member, and
the share of the budget for each assessed United Nations
peacekeeping operation does not exceed 25 percent for any
single United Nations member.
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CHAPTER 3
DEPARTMENT OF ENERGY
DEPARTMENTAL ADMINISTRATION
Such additional amounts as necessary, not to exceed
$5,408,000, to cover increases in the estimated amount
of cost of work for others notwithstanding the provisions
of the Anti-Deficiency Act (31 U.S.C. 1511, et seq.): Pro-
vided, That such increases in cost of work for others are
offset by revenue increases of the same or greater amount
derived from fees authorized by sections 31 and 33 of the
Atomic Energy Act of 1954 (42 U.S.C. 2051 and 2053),
to remain available until expended.
GENERAL PROVISIONS—THIS CHAPTER
SEC. 301. Notwithstanding any other provisions of
law, no fully allocated funding policy shall be applied to
projects for which funds were identified in the Conference
Report (House Report 105–271) accompanying the En-
ergy and Water Development Appropriations Act, 1998,
Public Law 105–62 (111 Stat. 1320, et seq.), under the
Construction, General; Operation and Maintenance, Gen-
eral; and Flood Control, Mississippi River and Tributaries,
appropriation accounts: Provided, That the Secretary of
the Army, acting through the Chief of Engineers, is di-
rected to undertake these projects using continuing con-
tracts, as authorized in section 10 of the Rivers and Har-
bors Act of September 22, 1922 (33 U.S.C. 621).
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SEC. 302. Section 303 of the Energy and Water De-
velopment Appropriations Act, 1998 (Public Law 105–
62), does not apply to the worker transition plan for the
Pinellas Plant site.
CHAPTER 4
FOREIGN OPERATIONS, EXPORT FINANCING,
AND RELATED PROGRAMS
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MONETARY PROGRAMS
UNITED STATES QUOTA IN THE INTERNATIONAL
MONETARY FUND
For an increase in the United States quota in the
International Monetary Fund, the dollar equivalent of
10,622,500,000 Special Drawing Rights, to remain avail-
able until expended.
LOANS TO THE INTERNATIONAL MONETARY FUND
For loans to the International Monetary Fund under
section 17 of the Bretton Woods Agreements Act pursuant
to the New Arrangements to Borrow, the dollar equivalent
of 2,462,000,000 Special Drawing Rights, to remain avail-
able until expended. In addition, the amounts appro-
priated by title III of the Foreign Aid and Related Agen-
cies Appropriations Act, 1963 (Public Law 87–872) and
section 1101(b) of the Supplemental Appropriations Act,
1984 (Public Law 98–181) may also be used under section
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17 of the Bretton Woods Agreements Act pursuant to the
New Arrangements to Borrow.
BILATERAL ECONOMIC ASSISTANCE
OTHER BILATERAL ECONOMIC ASSISTANCE
ECONOMIC SUPPORT FUND
Of the funds appropriated under this heading in the
Foreign Operations, Export Financing, and Related Pro-
grams Appropriations Act, 1998 (Public Law 105–118),
$31,000,000 should be made available for Bolivia.
GENERAL PROVISIONS—THIS CHAPTER
CONDITIONS FOR THE USE OF QUOTA RESOURCES
SEC. 401. None of the funds appropriated in this
chapter under the heading ‘‘United States Quota in the
International Monetary Fund’’ may be obligated or made
available to the International Monetary Fund until 15
days after the Secretary of the Treasury provides written
notification to the appropriate committees that it is the
policy of the International Monetary Fund that stand-by
agreements or other arrangements in excess of the equiva-
lent of $500,000,000 involving the use of resources avail-
able to the International Monetary Fund shall include pro-
visions committing the borrowing country to—
(1) comply with the terms of international trade
agreements of which the borrowing country is a sig-
natory;
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(2) eliminate the practice or policy of Govern-
ment-directed lending by private or public financial
institutions; and
(3) guarantee nondiscriminatory treatment in
debt resolution proceedings between domestic and
foreign creditors, and for debtors and other con-
cerned persons.
REPORTS ON FINANCIAL STABILIZATION PROGRAMS LED
BY THE INTERNATIONAL MONETARY FUND IN CON-
NECTION WITH FINANCING FROM THE EXCHANGE
STABILIZATION FUND
SEC. 402. (a) IN GENERAL.—The Secretary of the
Treasury shall submit to the appropriate committees 2 re-
ports on the implementation of financial stabilization pro-
grams led by the International Monetary Fund in any
country in connection with which the United States has
made a commitment to provide or has provided financing
from the stabilization fund established under section 5302
of title 31, United States Code. A report shall include the
following with respect to each such country:
(1) The extent that the country has made
progress in making conglomerate business practices
more transparent through the application of inter-
nationally accepted accounting practices, independ-
ent external audits, full disclosure, and provision of
consolidated statements.
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(2) The success of measures undertaken by the
United States Government and the International
Monetary Fund to ensure that the country will not
provide Government-subsidized support or tax privi-
leges to bail out individual corporations, particularly
in the semiconductor, steel, plywood, and paper in-
dustries.
(3) Whether International Monetary Fund in-
volvement in labor market flexibility measures has
had a negative effect on worker rights in the coun-
try, and the nature of any such negative effects.
(b) TIMING OF REPORTS.—The first report required
by subsection (a) shall be due by October 1, 1998, and
the second such report shall be due by April 1, 1999.
(c) 
NOTIFICATION
OF
IMPENDING
DISBURSE-
MENTS.—Not later than 5 days before the disbursement
to a country with respect to which a report is required
by subsection (a) of any resources from the stabilization
fund referred to in subsection (a) in connection with the
implementation of a financial stabilization program de-
scribed in subsection (a), the Secretary of the Treasury
shall notify the appropriate committees of the impending
disbursement.
ADVISORY COMMISSION
SEC. 403. (a) IN GENERAL.—The Secretary of the
Treasury shall establish an International Financial Insti-
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tution Advisory Commission (in this section referred to as
the ‘‘Commission’’).
(b) MEMBERSHIP.—The Commission shall include—
(1) at least 4 former Secretaries of the Treas-
ury, 1 of whom shall serve as the chairman of the
Commission; and
(2) representatives of organized labor, banking
and financial services, industry, agriculture, non-
governmental environmental organizations, and non-
governmental human rights organizations.
(c) RECOMMENDATIONS.—Within 180 days after the
appointment of Commission members, the Commission
shall submit to the appropriate committees a report that
contains the recommendations of the Commission regard-
ing the future role and responsibilities of the International
Monetary Fund and the International Bank for Recon-
struction and Development, including changes to the pol-
icy goals set forth for the Fund and the Bank in the
Bretton Woods Agreements Act and the International Fi-
nancial Institutions Act.
DEFINITIONS
SEC. 404. For purposes of sections 401 through 403
of this chapter, the term ‘‘appropriate committees’’ means
the Committees on Appropriations, Foreign Relations, and
Banking, Housing, and Urban Affairs of the Senate and
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the Committees on Appropriations and Banking and Fi-
nancial Services of the House of Representatives.
PARTICIPATION IN QUOTA INCREASE
SEC. 405. (a) IN GENERAL.—The Bretton Woods
Agreements Act (22 U.S.C. 286–286mm) is amended by
adding at the end the following:
‘‘SEC. 61. QUOTA INCREASE.
‘‘(a) IN GENERAL.—The United States Governor of
the Fund may consent to an increase in the quota of the
United States in the Fund equivalent to 10,622,500,000
Special Drawing Rights.
‘‘(b) SUBJECT TO APPROPRIATIONS.—The authority
provided by subsection (a) shall be effective only to such
extent or in such amounts as are provided in advance in
appropriations Acts.’’.
(b) EFFECTIVENESS SUBJECT TO CERTIFICATION.—
The amendment made by subsection (a) shall not take ef-
fect until the Secretary of the Treasury certifies to the
Committee on Banking and Financial Services of the
House of Representatives and the Committee on Foreign
Relations of the Senate that the investors and banks have
made a significant contribution in conjunction with a fi-
nancing package that, in the context of an international
financial crisis, might include taxpayer supported official
financing.
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NEW ARRANGEMENTS TO BORROW
SEC. 406. Section 17 of the Bretton Woods Agree-
ments Act (22 U.S.C. 286e–2 et seq.) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and February 24, 1983’’
and inserting ‘‘February 24, 1983, and Janu-
ary 27, 1997’’; and
(B) by striking ‘‘4,250,000,000’’ and in-
serting ‘‘6,712,000,000’’;
(2) 
in 
subsection 
(b), 
by 
striking
‘‘4,250,000,000’’ and inserting ‘‘6,712,000,000’’;
and
(3) in subsection (d)—
(A) by inserting ‘‘or the Decision of Janu-
ary 27, 1997,’’ after ‘‘February 24, 1983,’’;
and
(B) by inserting ‘‘or the New Arrange-
ments to Borrow, as applicable’’ before the pe-
riod at the end.
ADVOCACY OF POLICIES TO ENHANCE THE GENERAL EF-
FECTIVENESS OF THE INTERNATIONAL MONETARY
FUND
SEC. 407. (a) IN GENERAL.—Title XV of the Inter-
national Financial Institutions Act (22 U.S.C. 262o–262o-
1) is amended by adding at the end the following:
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‘‘SEC. 1503. ADVOCACY OF POLICIES TO ENHANCE THE
GENERAL EFFECTIVENESS OF THE INTER-
NATIONAL MONETARY FUND.
‘‘(a) IN GENERAL.—The Secretary of the Treasury
shall instruct the United States Executive Director of the
International Monetary Fund to use aggressively the voice
and vote of the Executive Director to do the following:
‘‘(1) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund in
structuring programs and assistance so as to pro-
mote policies and actions that will contribute to ex-
change rate stability and avoid competitive devalu-
ations that will further destabilize the international
financial and trading systems.
‘‘(2) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund in
promoting market-oriented reform, trade liberaliza-
tion, economic growth, democratic governance, and
social stability through—
‘‘(A) appropriate liberalization of pricing,
trade, investment, and exchange rate regimes of
countries to open countries to the competitive
forces of the global economy;
‘‘(B) opening domestic markets to fair and
open internal competition among domestic en-
terprises by eliminating inappropriate favor-
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itism for small or large businesses, eliminating
elite monopolies, creating and effectively imple-
menting anti-trust and anti-monopoly laws to
protect free competition, and establishing fair
and accessible legal procedures for dispute set-
tlement among domestic enterprises;
‘‘(C) privatizing industry in a fair and eq-
uitable manner that provides economic opportu-
nities to a broad spectrum of the population,
eliminating government and elite monopolies,
closing loss-making enterprises, and reducing
government control over the factors of produc-
tion;
‘‘(D) economic deregulation by eliminating
inefficient and overly burdensome regulations
and strengthening the legal framework support-
ing private contract and intellectual property
rights;
‘‘(E) establishing or strengthening key ele-
ments of a social safety net to cushion the ef-
fects on workers of unemployment and disloca-
tion; and
‘‘(F) encouraging the opening of markets
for agricultural commodities and products by
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requiring recipient countries to make efforts to
reduce trade barriers.
‘‘(3) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund, in
concert with appropriate international authorities
and other international financial institutions (as de-
fined in section 1701(c)(2)), in strengthening finan-
cial systems in developing countries, and encourag-
ing the adoption of sound banking principles and
practices, including the development of laws and reg-
ulations that will help to ensure that domestic finan-
cial institutions meet strong standards regarding
capital reserves, regulatory oversight, and trans-
parency.
‘‘(4) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund, in
concert with appropriate international authorities
and other international financial institutions (as de-
fined in section 1701(c)(2)), in facilitating the devel-
opment and implementation of internationally ac-
ceptable domestic bankruptcy laws and regulations
in developing countries, including the provision of
technical assistance as appropriate.
‘‘(5) Vigorously promote policies that aim at
appropriate burden-sharing by the private sector so
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that investors and creditors bear more fully the con-
sequences of their decisions, and accordingly advo-
cate policies which include—
‘‘(A) strengthening crisis prevention and
early warning signals through improved and
more effective surveillance of the national eco-
nomic policies and financial market develop-
ment of countries (including monitoring of the
structure and volume of capital flows to identify
problematic imbalances in the inflow of short
and medium term investment capital, poten-
tially destabilizing inflows of offshore lending
and foreign investment, or problems with the
maturity profiles of capital to provide warnings
of imminent economic instability), and fuller
disclosure of such information to market par-
ticipants;
‘‘(B) accelerating work on strengthening fi-
nancial systems in emerging market economies
so as to reduce the risk of financial crises;
‘‘(C) consideration of provisions in debt
contracts that would foster dialogue and con-
sultation between a sovereign debtor and its
private creditors, and among those creditors;
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‘‘(D) consideration of extending the scope
of the International Monetary Fund’s policy on
lending to members in arrears and of other
policies so as to foster the dialogue and con-
sultation referred to in subparagraph (C);
‘‘(E) intensified consideration of mecha-
nisms to facilitate orderly workout mechanisms
for countries experiencing debt or liquidity cri-
ses;
‘‘(F) consideration of establishing ad hoc
or formal linkages between the provision of offi-
cial financing to countries experiencing a finan-
cial crisis and the willingness of market partici-
pants to meaningfully participate in any sta-
bilization effort led by the International Mone-
tary Fund;
‘‘(G) using the International Monetary
Fund to facilitate discussions between debtors
and private creditors to help ensure that finan-
cial difficulties are resolved without inappropri-
ate resort to public resources; and
‘‘(H) the International Monetary Fund ac-
companying the provision of funding to coun-
tries experiencing a financial crisis resulting
from imprudent borrowing with efforts to
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(b) REPORTS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall prepare 3 reports on progress made toward
achieving the objectives outlined in subsection (a),
which shall describe the steps taken by the United
States, other members of the world community, and
the international financial institutions to strengthen
safeguards in the global financial system, including
measures to promote more efficient functioning of
global markets, by—
(A) helping to develop effective legal and
regulatory frameworks, including appropriate
bankruptcy and foreclosure mechanisms;
(B) increasing transparency and disclosure
by both the private and public sectors;
(C) strengthening prudential standards,
both globally and in individual economies;
(D) improving domestic policy manage-
ment;
(E) strengthening the role of the inter-
national financial institutions in financial crisis
prevention and management; and
(F) ensuring appropriate burden-sharing
by the private sector, particularly commercial