I
105TH CONGRESS
2D SESSION
H. R. 3573
To impose certain limitations on disbursements from the Exchange
Stabilization Fund to certain countries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 27, 1998
Mr. DINGELL (for himself, Mr. MURTHA, and Mr. REGULA) introduced the
following bill; which was referred to the Committee on Banking and Fi-
nancial Services, and in addition to the Committees on International Re-
lations, and Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To impose certain limitations on disbursements from the
Exchange Stabilization Fund to certain countries, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. LIMITATION ON DISBURSEMENTS FROM THE
EXCHANGE STABILIZATION FUND TO CER-
TAIN COUNTRIES.
Section 5302 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(e) LIMITATION
ON DISBURSEMENTS
TO COUN-
TRIES NOT IN COMPLIANCE WITH CERTAIN IMF COM-
MITMENTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section and subject to paragraph
(2), the Secretary of the Treasury may not make
any expenditure or loan, incur any other obligation,
or make any guarantee in excess of $500,000,000
through the stabilization fund, for the purpose of en-
gaging in a coordinated international rescue plan for
any foreign entity or any government of a foreign
country, unless the Secretary certifies to the Con-
gress that such foreign country is meeting its com-
mitments to the International Monetary Fund with
respect to economic, market access, and financial re-
forms.
‘‘(2) AGGREGATION RULE.—For purposes of de-
termining whether the amount of any expenditure,
loan, obligation, or guarantee described in paragraph
(1) with respect to any foreign entity or government
of a foreign country exceeds the amount of the limi-
tation imposed in such paragraph, the Secretary of
the Treasury shall take into account the aggregate
amount of all expenditures, loans, obligations, or
guarantees which have been made or incurred
through the stabilization fund with respect to such
country for the purpose described in such paragraph
during the 6-month period preceding the date such
expenditure, loan, obligation, or guarantee is made
or incurred.’’.
SEC. 2. REPORT TO THE CONGRESS ON ACTIONS BY THE
UNITED STATES TO MONITOR FOREIGN GOV-
ERNMENT 
COMPLIANCE 
WITH 
COMMIT-
MENTS MADE TO THE IMF IN CONNECTION
WITH FINANCIAL ASSISTANCE PACKAGES.
(a) IN GENERAL.—Not less frequently than semi-
annually, the Secretary of the Treasury shall submit to
the Congress a report on the steps that the United States
Government is taking to monitor the compliance of foreign
governments in Asia with commitments made to the Inter-
national Monetary Fund in connection with financial as-
sistance packages provided or arranged by the Inter-
national Monetary Fund.
(b) CERTAIN MATTERS TO BE INCLUDED.—Each re-
port required by subsection (a) shall include—
(1) a description of the actions that the United
States Executive Director at the International Mone-
tary Fund has taken to ensure that the Inter-
national Monetary Fund adequately and effectively
monitors and enforces the commitments referred to
in subsection (a); and
(2) a description of the actions that the Depart-
ment of the Treasury has taken, in coordination
with actions of the Office of the United States Trade
Representative or the Department of Commerce, to
monitor and enforce the commitments.
SEC. 3. MONITORING OF EFFECTS OF THE ASIAN FINAN-
CIAL CRISIS ON THE UNITED STATES AND
OTHER ECONOMIES.
(a) COMMERCE DEPARTMENT REPORT ON COMPLI-
ANCE BY ASIAN COUNTRIES WITH OBLIGATIONS UNDER
INTERNATIONAL AGREEMENTS.—In coordination with the
United States Trade Representative, the Secretary of
Commerce shall monitor the progress that countries in
Asia receiving financial assistance described in section 1
or 2 are making in implementing commitments they have
made under international agreements to provide access to
their markets for foreign goods and services. The Sec-
retary shall report to the Congress the results of such
monitoring on a bimonthly basis, beginning not later than
90 days after the date of the enactment of this Act, until
the financial assistance for each such Asian country has
been terminated. Each such report shall include the fol-
lowing:
(1) A description of the progress made in re-
solving issues in dispute in the investigation initiated
by the United States Trade Representative under
section 301(b)(1) of the Trade Act of 1974 on Octo-
ber 1, 1997, pursuant to section 310 of that Act, in
which tariff and nontariff barriers imposed by the
Republic of Korea were identified as denying United
States and other foreign automobiles access to mar-
kets in Korea.
(2) A description of the progress made by the
Republic of Korea in implementing its obligations
under the United States-Korea Memorandum of Un-
derstanding of 1995 concerning trade in motor vehi-
cles.
(3) A description of the extent to which Indo-
nesia is complying with its commitments to termi-
nate benefits to its ‘‘National Car’’ program.
(4) A description of the degree to which the
countries have fully implemented reforms required
by the International Monetary Fund that are di-
rected at corporate governance and corporate struc-
ture, including—
(A) making nontransparent conglomerate
practices more transparent through the applica-
tion of internationally accepted accounting
practices, independent external audits, full dis-
closure, and provision of consolidated state-
ments; and
(B) ensuring that no government sub-
sidized support or tax privileges will be provided
to prevent the financial failure of individual cor-
porations, particularly in the semiconductor,
steel, motor vehicle, and paper industries.
(5) A description of the implementation of re-
form measures required by the International Mone-
tary Fund to deregulate and privatize economic ac-
tivity by ending domestic monopolies, undertaking
trade liberalization, and opening up restricted areas
of the economy to foreign investment and competi-
tion.
(6) A detailed description of the trade policies
of the countries, including any unfair trade practices
or adverse effects of the trade policies on the United
States.
With regard to instances identified by the Secretary in
which a country in Asia addressed in the report has failed
to implement its obligations under international agree-
ments to provide access to its markets for foreign goods
and services, the Secretary, together with the United
States Trade Representative, shall take appropriate action
under the laws of the United States and under inter-
national dispute settlement procedures to enforce United
States rights as a result of such failure.
(b) COMMERCE DEPARTMENT REPORT ON THIRD
COUNTRY ACTIONS TO ACCEPT INCREASED ASIAN EX-
PORTS.—The Secretary of Commerce shall monitor ex-
ports of goods and services from those countries in Asia
receiving financial assistance described in section 1 or 2
to determine the degree to which Japan, the countries of
the European Union, and other major participants in the
International Monetary Fund are opening their markets
to any increase in those exports. The Secretary shall re-
port to the Congress the results of such monitoring on
a bimonthly basis, beginning not later than 90 days after
the date of the enactment of this Act, until the financial
assistance for each such Asian country has been termi-
nated. The Secretary, together with the Secretary of the
Treasury and the United States Trade Representative,
shall take all appropriate action that would result in those
countries opening their markets to exports from those
Asian countries in order to more equitably share the bur-
den of responding to the financial crisis in Asia.
(c) COMMERCE DEPARTMENT REPORT ON EXPORT
SURGES
TO
THE UNITED STATES.—The Secretary of
Commerce shall monitor exports from those countries in
Asia receiving financial assistance described in section 1
or 2 to the United States to determine whether there is
any significant increase in exports to the United States
due to fluctuations in currency valuations, government
subsidies, dumping, or transshipment through third coun-
tries. In conducting such monitoring, the Secretary shall
take into account any outstanding antidumping and coun-
tervailing duty determinations on imports from those
Asian countries. The Secretary shall report to the Con-
gress the results of such monitoring on a bimonthly basis,
beginning not later than 90 days after the date of the en-
actment of this Act, until the financial assistance for each
such Asian country has been terminated. The Secretary
shall take appropriate action under the laws of the United
States where there is evidence of dumping or subsidization
causing injury to United States industries.
(d) CONSULTATION WITH INDUSTRY.—In carrying
out the requirements of this section, the Secretary shall
consult with representatives of import-sensitive United
States industries for the purpose of sharing and confirm-
ing information and views that are relevant to the mon-
itoring and reports required by this section.
(e) REPORT
ON EFFECT
OF FINANCIAL ASSIST-
ANCE.—The Secretary of Commerce, in consultation with
the United States Trade Representative, shall report to
the Congress annually, beginning not later than one year
after the date of the enactment of this Act, concerning
the extent to which financial assistance described in sec-
tion 1 or 2 is contributing to economically sound financial,
open market, trade, and commercial relations between
each country in Asia receiving such assistance and other
countries.
SEC. 4. FULL ENFORCEMENT OF TRADE LAW REMEDIES.
(a) STUDY.—To ensure the effectiveness of United
States remedies against dumped and subsidized imports,
the Secretary of Commerce shall conduct a study, in con-
sultation with import-sensitive United States industries, to
determine the appropriate application of United States
antidumping and countervailing duty laws to imports from
Asian countries, in light of currency devaluations and fi-
nancial assistance described in section 1 or 2 that those
countries have received. Such study shall—
(1) determine the appropriate treatment of
rapid fluctuations in exchange rates that can se-
verely reduce the price of goods sold in an exporter’s
home market (when converted to United States dol-
lars) so that such fluctuations do not undermine the
effectiveness of United States antidumping laws;
(2) determine the appropriate treatment under
United States countervailing duty laws of the dif-
ference between the interest rates on government-in-
duced low-interest loans and the interest rates, if
higher, that private lenders would demand for loans
to the foreign companies concerned, taking into ac-
count the current levels of risk; and
(3) determine the appropriate treatment under
United States countervailing duty laws of subsidies
received in the past, even if the exporter or other
producer of the subsidized merchandise has been
sold or privatized or has declared bankruptcy.
(b) REPORT TO CONGRESS.—The Secretary of Com-
merce shall complete the study conducted under sub-
section (a), and submit to the Congress a report on the
study, by not later than 6 months after the date of the
enactment of this Act.
SEC. 5. SUNSET.
The provisions of this Act shall cease to be effective
8 years after the date of the enactment of this Act.
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