other facilities owned by passenger railroads, or by tourist,
scenic, or historic railroads are not eligible for funding
under this head: Provided further, That these funds shall
be available only to the extent an official budget request,
for a specific dollar amount, that includes designation of
the entire amount as an emergency requirement as defined
in the Balanced Budget and Emergency Deficit Control Act
of 1985, as amended, is transmitted by the President to the
Congress: Provided further, That the entire amount is des-
ignated by Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, as amended: Provided
further, That all funds made available under this head are
to remain available until September 30, 1998: Provided fur-
ther, That the Secretary of Transportation shall report to
the House and Senate Appropriations Committees not later
than December 31, 1998, with recommendations on how fu-
ture emergency railroad repair costs should be borne by the
railroad industry and their underwriters.
RELATED AGENCY
NATIONAL TRANSPORTATION SAFETY BOARD
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and Ex-
penses’’ for necessary expenses resulting from the crash of
TWA Flight 800, $5,400,000: Provided, That the entire
amount is available only for costs associated with rental
of the Calverton facility, of which not to exceed $500,000
is for security expenses: Provided further, That no funds
or unobligated balances are available to provide for or per-
mit flight operations at the Calverton airstrip.
GENERAL PROVISION, CHAPTER 8
SEC. 801. EXEMPTION AUTHORITY FOR AIR SERVICE
TO SLOT-CONTROLLED AIRPORTS. (a) IN GENERAL.—Sec-
tion 41714(i) of title 49, United States Code, is amended
by—
(1) striking ‘‘CERTAIN’’ in the caption;
(2) striking ‘‘120’’ and inserting ‘‘90’’; and
(3) striking ‘‘(a)(2) to improve air service be-
tween a nonhub airport (as defined in section
41731(a)(4)) and a high density airport subject to the
exemption authority under subsection (a),’’ and in-
serting ‘‘(a) or (c),’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
subsection (a) apply to applications for slot exemp-
tions pending at the Department of Transportation
under section 41714 of title 49, United States Code,
on the date of enactment of this Act or filed thereafter.
(2) APPLICATION TO PENDING REQUESTS.—For
the purpose of applying the amendments made by
subsection (a) to applications pending on the date of
enactment of this Act, the Secretary of Transportation
shall take into account the number of days the appli-
cation was pending before the date of enactment of
this Act. If such an application was pending for 80
or more days before the date of enactment of this Act,
the Secretary shall grant or deny the exemption to
which the application relates within 20 calendar days
after that date.
CHAPTER 9
SUBCOMMITTEE ON TREASURY AND GENERAL
GOVERNMENT
DEPARTMENT OF THE TREASURY
AUTOMATION ENHANCEMENT
YEAR 2000 CENTURY DATE CHANGE CONVERSION
For necessary expenses of the Department of the Treas-
ury for Year 2000 century date change conversion require-
ments, $39,410,000, to remain available until September
30, 2000.
FINANCIAL MANAGEMENT SERVICE
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and Ex-
penses’’, for Year 2000 century date change conversion re-
quirements, $5,300,000, to remain available until Septem-
ber 30, 2000.
UNITED STATES CUSTOMS SERVICE
CUSTOMS FACILITIES, CONSTRUCTION, IMPROVEMENTS
In addition to the amounts made available for the
United States Customs Service in Public Law 105–61,
$5,512,000, to remain available until September 30, 2000:
Provided, That this amount may be made available for con-
struction of a P3–AEW hangar in Corpus Christi, Texas:
Provided further, That the funds appropriated under this
heading may only be obligated 30 days after the Commis-
sioner of the Customs Service certifies to the House and
Senate Committees on Appropriations that the construction
of this facility is necessary for the operation of the P–3 air-
craft for the counternarcotics mission.
CHAPTER 10
SUBCOMMITTEE ON VA, HUD, AND INDEPENDENT
AGENCIES
DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
For an additional amount for ‘‘Compensation and
pensions’’, $550,000,000, to remain available until ex-
pended.
100
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
For an additional amount for ‘‘Community develop-
ment block grants funds’’, as authorized under title I of the
Housing and Community Development Act of 1974,
$260,000,000, which shall remain available until September
30, 2001, for use only for disaster relief, long-term recovery,
and mitigation in communities affected by Presidentially-
declared natural disasters designated during fiscal year
1998, except for those activities reimbursable or for which
funds are made available by the Federal Emergency Man-
agement Agency, the Small Business Administration, or the
Army Corps of Engineers: Provided, That in administering
these amounts and except as provided in the next proviso,
the Secretary may waive or specify alternative require-
ments for, and provision of any statute or regulation that
the Secretary administers in connection with the obligation
by the Secretary or the use by the recipient of these funds,
except for statutory requirements related to civil rights, fair
housing and nondiscrimination, the environment, and labor
standards, upon a finding that such waiver is required to
facilitate the use of such funds and would not be inconsist-
ent with the overall purpose of the statute: Provided further,
101
That the Secretary may waive the requirements that activi-
ties benefit persons of low and moderate income, except that
at least 50 percent of the funds under this head must benefit
primarily persons of low and moderate income unless the
Secretary makes a finding of compelling need: Provided fur-
ther, That all funds under this head shall be allocated by
the Secretary to States to be administered by each State
in conjunction with its Federal Emergency Management
Agency program or its community development block grant
program: Provided further, That each State shall provide
not less than 25 percent in public or private matching funds
or its equivalent value (other than administrative costs) for
any funds allocated to the State under this head: Provided
further, That, in conjunction with the Director of the Fed-
eral Emergency Management Agency, the Secretary shall
allocate funds based on the unmet needs identified by the
Director as those which have not or will not be addressed
by other Federal disaster assistance programs: Provided
further, That, in conjunction with the Director, the Sec-
retary shall utilize annual disaster cost estimates in order
that the funds under this head shall be available, to the
maximum extent feasible, to assist States with all Presi-
dentially declared disasters designated during this fiscal
year: Provided further, That the Secretary shall publish a
notice in the Federal Register governing the allocation and
102
use of the community development block grants funds made
available under this head for disaster areas and publish a
quarterly list of all allocations of funds under this head by
State, locality and activity (including all uses of waivers
and the reasons therefore): Provided further, That the Sec-
retary and the Director shall submit quarterly reports to
the House and Senate Committees on Appropriations on
all allocations and use of funds under this head, including
a review of all unmet needs: Provided further, That the en-
tire amount shall be available only to the extent an official
budget request, that includes designation of the entire
amount of the request as an emergency requirement as de-
fined by the Balanced Budget and Emergency Deficit Con-
trol Act of 1985, as amended, is transmitted by the Presi-
dent to the Congress: Provided further, That the entire
amount is designated by the Congress as an emergency re-
quirement pursuant to section 251(b)(2)(A)(i) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985,
as amended.
INDEPENDENT AGENCY
FEDERAL EMERGENCY MANAGEMENT AGENCY
DISASTER RELIEF
For an additional amount for ‘‘Disaster relief’’,
$1,600,000,000, to remain available until expended: Pro-
vided, That these funds shall be available only to the extent
103
that an official budget request for a specific amount, that
includes designation of the entire amount of the request as
an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to Congress: Pro-
vided further, That the entire amount appropriated herein
is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
GENERAL PROVISIONS, CHAPTER 10
SEC. 1001. Section 206 of the Departments of Veterans
Affairs and Housing and Urban Development, and Inde-
pendent Agencies Appropriations Act, 1998 (Pub. L. 105–
65; October 27, 1997) is amended by inserting the following
before the period: ‘‘, and for loans and grants for economic
development in and around 18th and Vine’’.
SEC. 1002. HOUSING OPPORTUNITIES FOR PERSONS
WITH AIDS. (a) Notwithstanding any other provision of
law, with respect to the amount allocated for fiscal year
1998, and the amounts that would otherwise be allocated
for fiscal year 1999 or any succeeding fiscal year, to the
City of Philadelphia, Pennsylvania on behalf of the Phila-
delphia, PA–NJ Primary Metropolitan Statistical Area (in
this section referred to as the ‘‘metropolitan area’’), under
section 854(c) of the AIDS Housing Opportunity Act (42
104
U.S.C. 12903(c)), the Secretary of Housing and Urban De-
velopment shall adjust such amounts by allocating to the
State of New Jersey the proportion of the metropolitan
area’s amount that is based on the number of cases of AIDS
reported in the portion of the metropolitan area that is lo-
cated in New Jersey.
(b) The State of New Jersey shall use amounts allo-
cated to the State under this section to carry out eligible
activities under section 855 of the AIDS Housing Oppor-
tunity Act (42 U.S.C. 12904) in the portion of the metro-
politan area that is located in New Jersey.
CHAPTER 11
OFFSETS AND RESCISSIONS
DEPARTMENT OF AGRICULTURE
FOOD SAFETY AND INSPECTION SERVICE
(RESCISSION)
Of the funds made available under this heading in
Public Law 105–86, $502,000 are rescinded.
FARM SERVICE AGENCY
AGRICULTURAL CREDIT INSURANCE FUND PROGRAM
ACCOUNT
(RESCISSION)
Of the funds made available for the cost of the unsub-
sidized guaranteed operating loans under this heading in
Public Law 105–86, $6,736,197 are rescinded.
105
RURAL HOUSING SERVICE
SALARIES AND EXPENSES
(RESCISSION)
Of the funds made available under this heading in
Public Law 105–86, $846,000 are rescinded.
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
MANAGEMENT OF LANDS AND RESOURCES
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $1,188,000 are rescinded.
OREGON AND CALIFORNIA GRANT LANDS
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $2,500,000 are rescinded.
UNITED STATES FISH AND WILDLIFE SERVICE
RESOURCE MANAGEMENT
(RESCISSION)
Of the funds made available under this heading in
Public Law 105–18, $250,000 are rescinded.
CONSTRUCTION
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $1,188,000 are rescinded.
106
NATIONAL PARK SERVICE
CONSTRUCTION
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $1,638,000 are rescinded.
BUREAU OF MINES
MINES AND MINERALS
(RESCISSIONS)
The following amounts, totaling $1,605,000, are re-
scinded from funds made available under this heading: in
Public Law 103–332, $1,255,000; in Public Law 103–138,
$60,000; in Public Law 102–381, $173,000; and in Public
Law 102–154, $117,000.
BUREAU OF INDIAN AFFAIRS
CONSTRUCTION
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $837,000 are rescinded.
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
PAYMENTS TO AIR CARRIERS
(RESCISSION)
Of the funds made available under this heading in
Public 
Law 
101–516 
and 
subsequently 
obligated,
$2,499,000 shall be deobligated and are hereby rescinded.
107
PAYMENTS TO AIR CARRIERS
(AIRPORT AND AIRWAY TRUST FUND)
(RESCISSION)
Of the budgetary resources provided for ‘‘Small Com-
munity Air Service’’ by Public Law 101–508 for fiscal
years prior to fiscal year 1998, $3,000,000 are rescinded.
FEDERAL AVIATION ADMINISTRATION
GRANTS-IN-AID FOR AIRPORTS
(AIRPORT AND AIRWAY TRUST FUND)
(RESCISSION OF CONTRACT AUTHORIZATION)
Of the unobligated balances authorized under 49
U.S.C. 48103 as amended, $185,893,000 are rescinded.
FEDERAL RAILROAD ADMINISTRATION
CONRAIL LABOR PROTECTION
(RESCISSION)
Of the budgetary resources provided by direct appro-
priation and by transfer for ‘‘Conrail Labor Protection’’,
unobligated balances of $508,234 are rescinded.
DEPARTMENT OF THE TREASURY
UNITED STATES CUSTOMS SERVICE
SALARIES AND EXPENSES
(RESCISSION)
Of the funds made available under this heading in
Public Law 104–208, $5,300,000, and in Public Law 104–
208, as amended by Public Law 105–18, $6,000,000 are
rescinded.
108
CUSTOMS FACILITIES, CONSTRUCTION, IMPROVEMENTS
(RESCISSION)
Of the funds made available under this heading in
Public Law 102–393, $4,470,000 and Public Law 103–123,
$1,041,754 are rescinded.
INTERNAL REVENUE SERVICE
INFORMATION TECHNOLOGY INVESTMENTS
(RESCISSION)
Of the funds made available under this heading in
Public Law 105–61, $33,410,000 are rescinded.
TITLE II—GENERAL PROVISIONS—THIS ACT
SEC. 2001. No part of any appropriation contained
in this Act shall remain available for obligation beyond the
current fiscal year unless expressly so provided herein.
SEC. 2002. None of the funds appropriated or other-
wise made available in this or any other Act may be obli-
gated or expended by the Patent and Trademark Office to
plan for the construction or lease of new facilities until 30
days after the submission of a report, to be delivered not
later than May 1, 1998, to the Committees on Appropria-
tions analyzing the cost versus the benefit of relocating to
a new facility, and the cost associated with leasing versus
lease-purchase, or other alternatives for new space, and
shall only be made available in accordance with section 605
of Public Law 105–119.
109
SEC. 2003. Funds appropriated pursuant to Public
Law 105–78 to carry out Title XX of the Public Health
Service Act are available for use for prevention service dem-
onstration grants without application of the limitation of
section 2010(c) of that Title.
SEC. 2004. PROVISIONS RELATING
TO UNIVERSAL
SERVICE SUPPORT
FOR PUBLIC INSTITUTIONAL TELE-
COMMUNICATIONS USERS. (a) NO INFERENCE REGARDING
EXISTING UNIVERSAL SERVICE ADMINISTRATIVE MECHA-
NISM.—Nothing in this section may be considered as ex-
pressing the approval of the Congress of the action of the
Federal Communications Commission in establishing, or
causing to be established, one or more corporations to ad-
minister the schools and libraries program and the rural
health care provider program under section 254(h) of the
Communications Act of 1934 (47 U.S.C. 254(h)), or the ap-
proval of any provision of such programs.
(b) FCC TO REPORT TO THE CONGRESS.—
(1) REPORT DUE DATE.—Pursuant to the find-
ings of the General Accounting Office (B–278820)
dated February 10, 1998, the Federal Communica-
tions Commission shall, by May 8, 1998, submit a 2-
part report to the Congress under this section.
(2) REVISED STRUCTURE.—The report shall pro-
pose a revised structure for the administration of the
110
programs established under section 254(h) of the Com-
munications Act of 1934 (47 U.S.C. 254(h)). The re-
vised structure shall consist of a single entity.
(A) LIMITATION
ON
ADMINISTRATION
OF
PROGRAMS.—The entity proposed by the Com-
mission to administer the programs—
(i) is limited to implementation of the
FCC rules for applications for discounts
and processing the applications necessary to
determine eligibility for discounts under
section 254(h) of the Communications Act of
1934 (47 U.S.C. 254(h)) as determined by
the Commission;
(ii) may not administer the programs
in any manner that requires that entity to
interpret the intent of the Congress in estab-
lishing the programs or interpret any rule
promulgated by the Commission in carrying
out the programs, without appropriate con-
sultation and guidance from the Commis-
sion.
(B) APA REQUIREMENTS WAIVED.—In pre-
paring the report required by this section, the
Commission shall find that good cause exists to
waive the requirements of section 553 of title 5,
111
United States Code, to the extent necessary to en-
able the Commission to submit the report to the
Congress by May 8, 1998.
(3) REPORT ON FUNDING OF SCHOOLS AND LI-
BRARIES PROGRAM AND RURAL HEALTH CARE PRO-
GRAM.—The report required by this section shall also
provide the following information about the contribu-
tions to, and requests for funding from, the schools
and libraries subsidy program:
(A) An estimate of the expected reductions
in interstate access charges anticipated on July
1, 1998.
(B) An accounting of the total contributions
to the universal service fund that are available
for use to support the schools and libraries pro-
gram under section 254(h) of the Communica-
tions Act of 1934 (47 U.S.C. 254(h)) for the sec-
ond quarter of 1998.
(C) An accounting of the amount of the con-
tribution described in subparagraph (B) that the
Commission expects to receive from—
(i) incumbent local exchange carriers;
(ii) interexchange carriers;
(iii) information service providers;
112
(iv) commercial mobile radio service
providers; and
(v) any other provider.
(D) Based on the applications for funding
under section 254(h) of the Communications Act
of 1934 (47 U.S.C. 254(h)) received as of April
15, 1998, an estimate of the costs of providing
universal service support to schools and libraries
under that section disaggregated by eligible serv-
ices and facilities as set forth in the eligibility
list of the Schools and Libraries Corporation, in-
cluding—
(i) the amounts requested for costs as-
sociated with telecommunications services;
(ii) the amounts requested for costs de-
scribed in clause (i) plus the costs of inter-
nal connections under the program;
(iii) the amounts requested for the costs
described in clause (ii) plus the cost of
internet access; and
(iv) the amount requested by eligible
schools and libraries in each category and
discount level listed in the matrix appear-
ing at paragraph 520 of the Commission’s
May 8, 1997 Order, calculated as dollar fig-
113
ures and as percentages of the total of all
requests—
(I) the amount requested by eligi-
ble schools and libraries in each such
category and discount level to provide
telecommunications services;
(II) the amount requested by eligi-
ble schools and libraries in each such
category and discount level to provide
internal connections; and
(III) the amount requested by eli-
gible schools and libraries in each such
category and discount level to provide
internet access.
(E) A justification for the amount, if any,
by which the total requested disbursements from
the fund described in subparagraph (D) exceeds
the amount of available contributions described
in subparagraph (B).
(F) Based on the amount described in sub-
paragraph (D), an estimate of the amount of
contributions that will be required for the schools
and libraries program in the third and fourth
quarters of 1998, and, to the extent these esti-
mated contributions for the third and fourth
114
quarter exceed the current second-quarter con-
tribution, the Commission shall provide an esti-
mate of the amount of support that will be need-
ed for each of the eligible services and facilities
as set forth in the eligibility list of the Schools
and Libraries Corporation, and disaggregated as
specified in subparagraph (D).
(G) An explanation of why restricting the
basis of telecommunications carriers’ contribu-
tions to universal service under section 254(a)(3)
of the Communications Act of 1934 (47 U.S.C.
254(a)(3)) to interstate revenues, while requiring
that contributions to universal service under sec-
tion 254(h) of that Act (47 U.S.C. 254(h)) be
based on both interstate as well as intrastate rev-
enues, is consistent with the provisions of section
254(d) of that Act (47 U.S.C. 254(d)).
(H) An explanation as to whether access
charge reductions should be passed through on a
dollar-for-dollar basis to each customer class on
a proportionate basis.
(I) An explanation of the contribution
mechanisms established by the Commission
under the Commission’s Report and Order (FCC
115
97–157), May 8, 1997, and whether any direct
end-user charges on consumers are appropriate.
(c) IMPOSITION OF CAP ON COMPENSATION OF INDI-
VIDUALS EMPLOYED TO CARRY OUT THE PROGRAMS.—No
officer or employee of the entity to be proposed to be estab-
lished under subsection (b)(2) of this section may be com-
pensated at an annual rate of pay, including any nonregu-
lar, extraordinary, or unexpected payment based on specific
determinations of exceptionally meritorious service or other-
wise, bonuses, or any other compensation (either monetary
or in-kind), which exceeds the rate of basic pay in effect
from time to time for level I of the Executive Schedule under
section 5312 of title 5, United States Code.
(d) SECOND-HALF
1998 CONTRIBUTIONS.—Before
June 1, 1998, the Federal Communications Commission
may not—
(1) adjust the contribution factors for tele-
communications carriers under section 254; or
(2) collect any such contribution due for the
third or fourth quarter of calendar year 1998.
SEC. 2005. SUPPORT FOR DEMOCRATIC OPPOSITION IN
IRAQ. In addition to the amounts appropriated to the Presi-
dent under Public Law 105–118, there is hereby appro-
priated $5,000,000 for the ‘‘Economic Support Fund’’, to
remain available until September 30, 1999, for assistance
116
to the Iraqi democratic opposition for such activities as or-
ganization, training, disseminating information, develop-
ing and implementing agreements among opposition
groups, and for related purposes: Provided, That within 30
days of enactment into law of this Act the Secretary of State
shall submit a detailed report to the appropriate committees
of Congress on plans to establish a program to support the
democratic opposition in Iraq: Provided further, That such
amount is designated by Congress as an emergency require-
ment pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended: Provided further, That the entire amount shall
be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of
the entire amount of the request as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted by
the President to Congress.
SEC. 2006. ESTABLISHMENT OF RADIO FREE IRAQ. In
addition to the amounts appropriated to the United States
Information Agency under Public Law 105–119, there is
hereby appropriated $5,000,000 for ‘‘International Broad-
casting Operations’’, to remain available until September
30, 1999, for a grant to Radio Free Europe/Radio Liberty
for surrogate radio broadcasting to the Iraqi people: Pro-
117
vided, That such broadcasting shall be designated ‘‘Radio
Free Iraq’’: Provided further, That within 30 days of enact-
ment into law of this Act the Broadcasting Board of Gov-
ernors shall submit a detailed report to the appropriate
committees of Congress on plans to establish a surrogate
broadcasting service to Iraq: Provided further, That such
amount is designated by Congress as an emergency require-
ment pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended: Provided further, That the entire amount shall
be available only to the extent that an official budget request
for a specific dollar amount, that includes designation of
the entire amount of the request as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted by
the President to Congress.
SEC. 2007. Section 203 of the National Sea Grant Col-
lege Program Act (33 U.S.C. 1122) is amended by—
(1) striking paragraph (5) and redesignating
paragraphs (6) through (17) as paragraphs (5)
through (16);
(2) redesignating subparagraphs (C) through (F)
of paragraph (7), as redesignated, as subparagraphs
(D) through (G); and
118
(3) inserting after subparagraph (B) of para-
graph (7), as redesignated, the following:
‘‘(C) Lake Champlain (to the extent that
such resources have hydrological, biological,
physical, or geological characteristics and prob-
lems similar or related to those of the Great
Lakes);’’.
SEC. 2008. Notwithstanding section 21(a)(4) of the
Small Business Act (15 U.S.C. 648(a)(4)) or any other pro-
vision of law, of the amount made available under the De-
partments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1998 (Public
Law 105–119) for the account for salaries and expenses of
the Small Business Administration, to fund grants for per-
formance in fiscal year 1998 or fiscal year 1999 as author-
ized by section 21 of the Small Business Act (15 U.S.C.
648), any funds obligated or expended for the conduct of
a pilot project for a study on the current state of commerce
on the Internet in Vermont shall not be subject to a non-
Federal matching requirement.
SEC. 2009. (a) Any agency listed in section 404(b) of
the Departments of Commerce, Justice, and State, the Judi-
ciary, and Related Agencies Appropriations Act, 1998,
Public Law 105–119, may transfer any amount to the De-
partment of State, subject to the limitations of subsection
119
(b) of this section, for the purpose of making technical ad-
justments to the amounts transferred by section 404 of such
Act.
(b) Funds transferred pursuant to subsection (a) shall
not exceed $12,000,000, of which not to exceed $3,500,000
may be transferred from the United States Information
Agency, of which not to exceed $3,600,000 may be trans-
ferred from the Defense Intelligence Agency, of which not
to exceed $1,600,000 may be transferred from the Defense
Security Assistance Agency, of which not to exceed $900,000
may be transferred from the Peace Corps, and of which not
to exceed $500,000 may be transferred from any other single
agency listed in section 404(b) of Public Law 105–119.
(c) A transfer of funds pursuant to this section shall
not require any notification or certification to Congress or
any committee of Congress, notwithstanding any other pro-
vision of law.
SEC. 2010. UNITED STATES TAXPAYER SUPPORT TO-
WARDS INTERNATIONAL PEACE AND SECURITY. (a) FIND-
INGS.—Congress finds that—
(1) 8,500 men and women from the United
States Armed Forces are currently serving in and
around Bosnia, and 44,200 men and women from the
United States Armed Forces are currently serving in
and around the Persian Gulf;
121
States ‘‘arrears’’ for United Nations peacekeeping op-
erations;
(7) in response to spiraling United Nations
peacekeeping costs and excessively broad mandates,
the President on April 30, 1994, approved Public
Law 103–236, which in section 404 limits the pay-
ment of the United States assessed contribution for
any United Nations peacekeeping operation to 25 per-
cent of the total of all assessed contributions for that
operation;
(8) the United Nations continues to charge the
United States for 30.4 percent of the costs of United
Nations peacekeeping operations, despite Public Law
103–236;
(9) the United Nations continues to demand
payment from the United States of the difference be-
tween 25 percent and 30.4 percent of bills for United
Nations peacekeeping operations;
(10) United States law prohibits payment of
those amounts as arrears to the United Nations, and
the United States is not obligated to pay those
amounts.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that—
122
(1) United States taxpayers should be com-
mended for their generous and unparalleled support
in maintaining international peace and security
through these additional contributions in support of
United Nations Security Council resolutions, and
that the United Nations should acknowledge publicly
the financial and military support of the United
States in maintaining international peace and stabil-
ity; and
(2) the United Nations should immediately re-
duce the percentage that the United States is assessed
for United Nations peacekeeping operations to 25 per-
cent to reflect United States law that limits assess-
ments the United States will pay to support United
Nations peacekeeping operations.
(c) RECOGNITION OF UNITED STATES SUPPORT.—
(1) REPORT BY THE SECURITY COUNCIL.—The
President should direct the United States Ambassador
to the United Nations to introduce a resolution in the
United Nations Security Council, requiring that the
Security Council publicly report to all United Na-
tions member states on the amount of funds the
United States has spent since January 1, 1990, in
implementing or supporting United Nations Security
123
Council resolutions, as determined by the Department
of Defense.
(2) DEMARCHE
TO
SECURITY
COUNCIL
MEM-
BERS.—The Secretary of State should issue a de-
marche to all member countries of the United Nations
Security Council, informing them of the amount of
funds, both credited and uncredited, the Department
of Defense has spent since January 1, 1990, in sup-
port of United Nations Security Council resolutions.
(d) REPORT TO CONGRESS.—Not later than 45 days
after the date of enactment of this Act, the President shall
submit a report to the Committees on Appropriations and
International Relations of the House of Representatives and
the Committees on Appropriations and Foreign Relations
of the Senate with regard to actions taken to carry out the
provisions of subsection (c).
SEC. 2011. ELIGIBILITY FOR REFUGEE STATUS. Sec-
tion 584 of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997 (Public Law
104–208; 110 Stat. 3009–171) is amended—
(1) in subsection (a)—
(A) by striking ‘‘For purposes’’ and insert-
ing ‘‘Notwithstanding any other provision of
law, for purposes’’; and
124
(B) by striking ‘‘fiscal year 1997’’ and in-
serting ‘‘fiscal years 1998 and 1999’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALIENS COVERED.—
‘‘(1) IN GENERAL.— An alien described in this
subsection is an alien who—
‘‘(A) is the son or daughter of a qualified
national;
‘‘(B) is 21 years of age or older; and
‘‘(C) was unmarried as of the date of ac-
ceptance of the alien’s parent for resettlement
under the Orderly Departure Program.
‘‘(2) QUALIFIED
NATIONAL.—For purposes of
paragraph (1), the term ‘qualified national’ means a
national of Vietnam who—
‘‘(A)(i) was formerly interned in a reeduca-
tion camp in Vietnam by the Government of the
Socialist Republic of Vietnam; or
‘‘(ii) is the widow or widower of an indi-
vidual described in clause (i); and
‘‘(B)(i) qualified for refugee processing
under the reeducation camp internees subpro-
gram of the Orderly Departure Program; and
125
‘‘(ii) on or after April 1, 1995, is accept-
ed—
‘‘(I) for resettlement as a refugee; or
‘‘(II) for admission as an immigrant
under the Orderly Departure Program.’’.
SEC. 2012. ELIMINATION
OF SECRECY
IN INTER-
NATIONAL TRADE ORGANIZATIONS. The President shall in-
struct the United States Representatives to the World Trade
Organization to seek the adoption of procedures that will
ensure broader application of the principles of transparency
and openness in the activities of the organization, including
by urging the World Trade Organization General Council
to—
(1) permit appropriate meetings of the Council,
the Ministerial Conference, dispute settlement panels,
and the Appellate Body to be made open to the public;
and
(2) provide for timely public summaries of the
matters discussed and decisions made in any closed
meeting of the Conference or Council.
SEC. 2013. In addition to the amounts provided in
Public Law 105–56, $35,000,000 is appropriated and shall
be available for deposit in the International Trust Fund
of the Republic of Slovenia for Demining, Mine Clearance,
and 
Assistance 
to 
Mine 
Victims 
in 
Bosnia 
and
126
Herzegovina: Provided, That such amount may be deposited
in that Fund only if the President determines that such
amount could be used effectively and for objectives consist-
ent with on-going multilateral efforts to remove landmines
in Bosnia and Herzegovina: Provided further, That such
amount may be deposited in that Fund only to the extent
of deposits of matching amounts in that Fund by other gov-
ernment, entities, or persons: Provided further, That the
amount of such amount deposited by the United States in
that Fund may be expended by the Republic of Slovenia
only in consultation with the United States Government:
Provided further, That the entire amount shall be available
only to the extent an official budget request, for a specific
dollar amount, that includes a designation of the entire
amount as an emergency requirement as defined in the Bal-
anced Budget and Emergency Deficit Control Act of 1985
is transmitted to Congress by the President: Provided fur-
ther, That the entire amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(A)
of such Act.
TITLE III—EMERGENCY TRADE DEFICIT REVIEW
COMMISSION
SEC. 3001. SHORT TITLE. This title may be cited as
the ‘‘Emergency Trade Deficit Review Commission Act’’.
127
SEC. 3002. FINDINGS. Congress makes the following
findings:
(1) The United States continues to run substan-
tial merchandise trade and current account deficits.
(2) Economic forecasts anticipate continued
growth in such deficits in the next few years.
(3) The positive net international asset position
that the United States built up over many years was
eliminated in the 1980s. The United States today has
become the world’s largest debtor nation.
(4) The United States merchandise trade deficit
is characterized by large bilateral trade imbalances
with a handful of countries.
(5) The United States has one of the most open
borders and economies in the world. The United
States faces significant tariff and nontariff trade bar-
riers with its trading partners. Current overall trade
balances do not reflect the actual competitiveness or
productivity of the United States economy.
(6) Since the last comprehensive review of na-
tional trade and investment policies was conducted by
a Presidential commission in 1970, there have been
massive worldwide economic and political changes
which have profoundly affected world trading rela-
tionships. Globalization, the increased mobility of
128
capital and technology, the role of transnational cor-
porations, and the outsourcing of production across
national boundaries, are reshaping both the compara-
tive and competitive trade advantages among nations.
(7) The United States is once again at a critical
juncture in trade policy development. The nature of
the United States trade deficit and its causes and
consequences must be analyzed and documented.
SEC. 3003. ESTABLISHMENT OF COMMISSION. (a) ES-
TABLISHMENT.—There is established a commission to be
known as the Emergency Trade Deficit Review Commission
(hereafter in this title referred to as the ‘‘Commission’’).
(b) PURPOSE.—The purpose of the Commission is to
study the causes and consequences of the United States mer-
chandise trade and current account deficits and to develop
trade policy recommendations for the 21st century. The rec-
ommendations shall include strategies necessary to achieve
United States market access to foreign markets that fully
reflects the competitiveness and productivity of the United
States and also improves the standard of living of United
States citizens.
(c) MEMBERSHIP OF COMMISSION.—
(1) COMPOSITION.—The Commission shall be
composed of 12 members of whom—
129
(A) 1 Senator and 2 other persons shall be
appointed by the President pro tempore of the
Senate upon the recommendation of the Majority
Leader of the Senate;
(B) 1 Senator and 2 other persons shall be
appointed by the President pro tempore of the
Senate upon the recommendation of the Minority
Leader of the Senate;
(C) 1 Member of the House of Representa-
tives and 2 other persons shall be appointed by
the Speaker of the House of Representatives; and
(D) 1 Member of the House of Representa-
tives and 2 other persons shall be appointed by
the Minority Leader of the House of Representa-
tives.
(2) QUALIFICATIONS OF MEMBERS.—
(A) APPOINTMENTS.—Persons who are ap-
pointed under paragraph (1), shall be persons
who—
(i) have expertise in economics, inter-
national trade, manufacturing, labor, envi-
ronment, business, or have other pertinent
qualifications or experience; and
(ii) are not officers or employees of the
United States.
130
(B) OTHER CONSIDERATIONS.—In appoint-
ing Commission members, every effort shall be
made to ensure that the members—
(i) are representative of a broad cross-
section of economic and trade perspectives
within the United States; and
(ii) provide fresh insights to analyzing
the causes and consequences of United
States merchandise trade and current ac-
count deficits.
(d) PERIOD OF APPOINTMENT; VACANCIES.—
(1) IN GENERAL.—Members shall be appointed
not later than 60 days after the date of enactment of
this Act and the appointment shall be for the life of
the Commission.
(2) VACANCIES.—Any vacancy in the Commis-
sion shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(e) INITIAL MEETING.—Not later than 30 days after
the date on which all members of the Commission have been
appointed, the Commission shall hold its first meeting.
(f) MEETINGS.—The Commission shall meet at the call
of the Chairperson.
(g) CHAIRPERSON
AND VICE CHAIRPERSON.—The
members of the Commission shall elect a chairperson and
131
vice chairperson from among the members of the Commis-
sion.
(h) QUORUM.—A majority of the members of the Com-
mission shall constitute a quorum for the transaction of
business.
(i) VOTING.—Each member of the Commission shall be
entitled to 1 vote, which shall be equal to the vote of every
other member of the Commission.
SEC. 3004. DUTIES OF THE COMMISSION. (a) IN GEN-
ERAL.—The Commission shall be responsible for developing
trade policy recommendations, by examining the economic,
trade, tax, and investment policies and laws, and other in-
centives and restrictions that are relevant to addressing the
causes and consequences of the United States merchandise
trade and current account deficits.
(b) RECOMMENDATIONS.—The Commission shall ex-
amine and make recommendations to Congress and the
President on the following:
(1) The manner in which the Government of the
United States establishes and administers the Na-
tion’s fundamental trade policies and objectives, in-
cluding—
(A) the relationship of the merchandise
trade and current account balances to the overall
well-being of the United States economy and any
132
impact the trade balance may have on wages
and employment in various sectors of the United
States economy;
(B) any effects the merchandise trade and
current account deficits may have on the areas
of manufacturing and technology and on defense
production and innovation capabilities of the
United States;
(C) the impact that United States monetary
and fiscal policies may have on United States
merchandise trade and current account deficits;
and
(D) the coordination, allocation, and ac-
countability of trade responsibilities among Fed-
eral agencies and the means for congressional
oversight of the trade policy process.
(2) The causes and consequences of the merchan-
dise trade and current account deficits and specific
bilateral trade deficits, including—
(A) identification and quantification of the
macroeconomic factors and bilateral trade bar-
riers contributing to the United States merchan-
dise trade and current account deficits;
(B) identification and quantification of any
impact of the merchandise trade and current ac-
133
count deficits on the domestic economy, indus-
trial base, manufacturing capacity, number and
quality of jobs, productivity, wages, and the
United States standard of living;
(C) identification and quantification of
trade deficits within individual industrial, man-
ufacturing, and production sectors, and any re-
lationship to intraindustry and intracompany
transactions;
(D) a review of the adequacy of the current
collection and reporting of import and export
data, and the identification and development of
additional data bases and economic measure-
ments that may be needed to properly quantify
the factors described in subparagraphs (A), (B),
and (C);
(E) the relationship that tariff and non-
tariff barriers may have to the merchandise
trade and current account deficits and the extent
to which such deficits have become structural;
(F) the extent to which there is reciprocal
market access substantially equivalent to that af-
forded by the United States in each country with
which the United States has a persistent and
substantial bilateral trade deficit; and
134
(G) the impact of transhipments on bilat-
eral trade.
(3) Any relationship of United States merchan-
dise trade and current account deficits to both com-
parative and competitive trade advantages within the
global economy, including—
(A) a systematic analysis of the United
States trade patterns with different trading
partners, to what extent the trade patterns are
based on comparative and competitive trade ad-
vantages, and how the trade advantages relate to
the goods that are exported to and imported from
various trading partners;
(B) the extent to which the increased mobil-
ity of capital and technology has changed both
comparative and competitive trade advantages;
(C) the extent to which differences in the
growth rates of the United States and its trading
partners may impact on United States merchan-
dise trade and current account deficits;
(D) any impact that labor, environmental,
or health and safety standards may have on
world trade;
(E) the impact that currency exchange rate
fluctuations and any manipulation of exchange
135
rates may have on United States merchandise
trade and current account deficits;
(F) the effect that offset and technology
transfer agreements have on the long-term com-
petitiveness of the United States manufacturing
sectors; and
(G) any effect that international trade,
labor, environmental, or other agreements may
have on United States competitiveness.
(4) The flow of investments both into and out of
the United States, including—
(A) any consequences for the United States
economy of the current status of the United
States as a debtor nation;
(B) any relationship between such invest-
ments and the United States merchandise trade
and current account deficits and living stand-
ards of United States workers;
(C) any impact such investments may have
on United States labor, community, environ-
mental, and health and safety standards, and
how such investment flows influence the location
of manufacturing facilities; and
(D) the effect of barriers to United States
foreign direct investment in developed and devel-
136
oping nations, particularly nations with which
the United States has a merchandise trade and
current account deficit.
SEC. 3005. FINAL REPORT; CONGRESSIONAL HEAR-
INGS. (a) FINAL REPORT.—
(1) IN
GENERAL.—Not later than 18 months
after the date of enactment of this Act, the Commis-
sion shall submit to the President and Congress a
final report which contains—
(A) the findings and conclusions of the
Commission described in section 3004;
(B) recommendations for addressing the
problems identified as part of the Commission’s
analysis; and
(C) any proposals for administrative and
legislative actions necessary to implement such
recommendations.
(2) SEPARATE VIEWS.—Any member of the Com-
mission may submit additional findings and rec-
ommendations as part of the final report.
(b) CONGRESSIONAL HEARINGS.—Not later than 6
months after the final report described in subsection (a) is
submitted, the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate shall hold hearings on the report. Other committees
137
of the House of Representatives and Senate with relevant
jurisdiction may also hold hearings on the report.
SEC. 3006. POWERS
OF COMMISSION. (a) HEAR-
INGS.—The Commission may hold such hearings, sit and
act at such times and places, take such testimony, and re-
ceive such evidence as the Commission may find advisable
to fulfill the requirements of this title. The Commission shall
hold at least 1 or more hearings in Washington, D.C., and
4 in different regions of the United States.
(b) INFORMATION FROM FEDERAL AGENCIES.—The
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out the provisions of this title.
Upon request of the Chairperson of the Commission, the
head of such department or agency shall furnish such infor-
mation to the Commission.
(c) POSTAL SERVICES.—The Commission may use the
United States mails in the same manner and under the
same conditions as other departments and agencies of the
Federal Government.
SEC. 3007. COMMISSION PERSONNEL MATTERS. (a)
COMPENSATION OF MEMBERS.—Each member of the Com-
mission who is not an officer or employee of the Federal
Government shall be compensated at a rate equal to the
daily equivalent of the annual rate of basic pay prescribed
138
for level IV of the Executive Schedule under section 5315
of title 5, United States Code, for each day (including travel
time) during which such member is engaged in the perform-
ance of the duties of the Commission. All members of the
Commission who are officers or employees of the United
States shall serve without compensation in addition to that
received for their services as officers or employees of the
United States.
(b) TRAVEL EXPENSES.—The members of the Commis-
sion shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places
of business in the performance of services for the Commis-
sion.
(c) STAFF.—
(1) IN GENERAL.—The Chairperson of the Com-
mission may, without regard to the civil service laws
and regulations, appoint and terminate an executive
director and such other additional personnel as may
be necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) COMPENSATION.—The Chairperson of the
Commission may fix the compensation of the execu-
139
tive director and other personnel without regard to
the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay
rates, except that the rate of pay for the executive di-
rector and other personnel may not exceed the rate
payable for level V of the Executive Schedule under
section 5316 of such title.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed-
eral Government employee may be detailed to the Commis-
sion without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or privilege.
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairperson of the Commission may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code, at rates for individ-
uals which do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive
Schedule under section 5316 of such title.
SEC. 3008. SUPPORT SERVICES. The Administrator of
the General Services Administration shall provide to the
Commission on a reimbursable basis such administrative
support services as the Commission may request.
140
SEC. 3009. APPROPRIATIONS. There are appropriated
$2,000,000 to the Commission to carry out the provisions
of this title.
TITLE IV—AGRICULTURAL CREDIT PROGRAMS
SEC. 4001. SHORT TITLE. This title may be cited as
the ‘‘Agricultural Credit Restoration Act’’.
SEC. 4002. AMENDMENTS
TO
THE CONSOLIDATED
FARM
AND
RURAL
DEVELOPMENT
ACT. (a) Section
343(a)(12)(B) of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1991(a)(12)(B)) is amended to read
as follows:
‘‘(B) EXCEPTIONS.—The term ‘debt forgive-
ness’ does not include—
‘‘(i) consolidation, rescheduling, re-
amortization, or deferral of a loan;
‘‘(ii) one debt forgiveness in the form of
a restructuring, write-down, or net recovery
buy-out during the lifetime of the borrower
that is due to a financial problem of the
borrower relating to a natural disaster or a
medical condition of the borrower or of a
member of the immediate family of the bor-
rower (or, in the case of a borrower that is
an entity, a principal owner of the borrower
141
or a member of the immediate family of
such an owner); and
‘‘(iii) any restructuring, write-down,
or net recovery buy-out provided as a part
of a resolution of a discrimination com-
plaint against the Secretary.’’.
(b) Section 353(m) of such Act (7 U.S.C. 2001(m)) is
amended by striking all that precedes paragraph (2) and
inserting the following:
‘‘(m) LIMITATION ON NUMBER OF WRITE-DOWNS AND
NET RECOVERY BUY-OUTS PER BORROWER.—
‘‘(1) IN GENERAL.—The Secretary may provide
a write-down or net recovery buy-out under this sec-
tion on not more than 2 occasions per borrower with
respect to loans made after January 6, 1988.’’.
(c) Section 353 of such Act (7 U.S.C. 2001) is amended
by striking subsection (o).
(d) Section 355(c)(2) of such Act (7 U.S.C. 2003(c)(2))
is amended to read as follows:
‘‘(2) RESERVATION AND ALLOCATION.—
‘‘(A) IN GENERAL.—The Secretary shall, to
the greatest extent practicable, reserve and allo-
cate the proportion of each State’s loan funds
made available under subtitle B that is equal to
that State’s target participation rate for use by
142
the socially disadvantaged farmers or ranchers
in that State. The Secretary shall, to the extent
practicable, distribute the total so derived on a
county by county basis according to the number
of socially disadvantaged farmers or ranchers in
the county.
‘‘(B) REALLOCATION OF UNUSED FUNDS.—
The Secretary may pool any funds reserved and
allocated under this paragraph with respect to a
State that are not used as described in subpara-
graph (A) in a State in the first 10 months of
a fiscal year with the funds similarly not so used
in other States, and may reallocate such pooled
funds in the discretion of the Secretary for use
by socially disadvantaged farmers and ranchers
in other States.’’.
(e) Section 373(b)(1) of such Act (7 U.S.C.
2008h(b)(1)) is amended to read as follows:
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may not make or guarantee
a loan under subtitle A or B to a borrower who on,
2 or more occasions, received debt forgiveness on a
loan made or guaranteed under this title.’’.
(f) Section 373(c) of such Act (7 U.S.C. 2008h(c)) is
amended to read as follows:
143
‘‘(c) NO MORE THAN 2 DEBT FORGIVENESSES PER
BORROWER ON DIRECT LOANS.—The Secretary may not,
on 2 or more occasions, provide debt forgiveness to a bor-
rower on a direct loan made under this title.’’.
SEC. 4003. REGULATIONS. Not later than 90 days after
the date of the enactment of this title, the Secretary of Agri-
culture shall promulgate regulations necessary to carry out
the amendments made by this title, without regard to—
(1) the notice and comment provisions of section
553 of title 5, United States Code; and
(2) the statement of policy of the Secretary of
Agriculture relating to notices of proposed rulemaking
and public participation in rulemaking that became
effective on July 24, 1971 (36 Fed. Reg. 13804).
TITLE V—INTERNATIONAL MONETARY FUND
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
International Monetary Fund for the fiscal year ending
September 30, 1998, and for other purposes, namely:
MULTILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
LOANS TO INTERNATIONAL MONETARY FUND
NEW ARRANGEMENTS TO BORROW
For loans to the International Monetary Fund (Fund)
under the New Arrangements to Borrow, the dollar equiva-
lent of 2,462,000,000 Special Drawing Rights, to remain
144
available until expended; in addition, up to the dollar
equivalent of 4,250,000,000 Special Drawing Rights pre-
viously appropriated by the Act of November 30, 1983 (Pub-
lic Law 98–181), and the Act of October 23, 1962 (Public
Law 87–872), for the General Arrangements to Borrow,
may also be used for the New Arrangements to Borrow.
UNITED STATES QUOTA
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.
GENERAL PROVISIONS
SEC. 5001. CONDITIONS FOR THE USE OF QUOTA RE-
SOURCES. (a) None of the funds appropriated in this Act
under the heading ‘‘United States Quota, International
Monetary Fund’’ may be obligated, transferred or made
available to the International Monetary Fund until 30 days
after the Secretary of the Treasury certifies that the major
shareholders of the International Monetary Fund, including
the United States, Japan, the Federal Republic of Ger-
many, France, Italy, the United Kingdom, and Canada
have publicly agreed to, and will seek to implement in the
Fund, policies that provide for conditions in stand-by
agreements or other arrangements regarding the use of
Fund resources, requiring that the recipient country—
145
(1) liberalize restrictions on trade in goods and
services and on investment, at a minimum consistent
with the terms of all international trade obligations
and agreements; and
(2) to eliminate the practice or policy of govern-
ment directed lending on non-commercial terms or
provision of market distorting subsidies to favored in-
dustries, enterprises, parties, or institutions.
(b) Subsequent to the certification provided in sub-
section (a), in conjunction with the annual submission of
the President’s budget, the Secretary of the Treasury shall
report to the appropriate committees on the implementation
and enforcement of the provisions in subsection (a).
(c) The United States shall exert its influence with the
Fund and its members to encourage the Fund to include
as part of its conditions of stand-by agreements or other
uses of the Fund’s resources that the recipient country take
action to remove discriminatory treatment between foreign
and domestic creditors in its debt resolution proceedings.
The Secretary of the Treasury shall report back to the Con-
gress six months after the enactment of this Act, and annu-
ally thereafter, on the progress in achieving this require-
ment.
(d) BANKRUPTCY LAW REFORM.—The United States
shall exert its influence with the International Monetary
146
Fund and its members to encourage the International Mon-
etary Fund to include as part of its conditions of assistance
that the recipient country take action to adopt, as soon as
possible, modern insolvency laws that—
(1) emphasize reorganization of business enter-
prises rather than liquidation whenever possible;
(2) provide for a high degree of flexibility of ac-
tion, in place of rigid requirements of form or sub-
stance, together with appropriate review and ap-
proval by a court and a majority of the creditors in-
volved;
(3) include provisions to ensure that assets gath-
ered in insolvency proceedings are accounted for and
put back into the market stream as quickly as possible
in order to maximize the number of businesses that
can be kept productive and increase the number of
jobs that can be saved; and
(4) promote international cooperation in insol-
vency matters by including—
(A) provisions set forth in the Model Law
on Cross-Border Insolvency approved by the
United Nations Commission on International
Trade Law, including removal of discriminatory
treatment between foreign and domestic creditors
in debt resolution proceedings; and
147
(B) other provisions appropriate for pro-
moting such cooperation.
The Secretary of the Treasury shall report back to Congress
six months after the enactment of this Act, and annually,
thereafter, on the progress in achieving this requirement.
(e) Nothing in this section shall be construed to create
any private right of action with respect to the enforcement
of its terms.
SEC. 5002. TRANSPARENCY AND OVERSIGHT. (a) Not
later than 30 days after enactment of this Act, the Secretary
of the Treasury shall certify to the appropriate committees
that the Board of Executive Directors of the International
Monetary Fund has agreed to provide timely access by the
Comptroller General to information and documents relating
to the Fund’s operations, program and policy reviews and
decisions regarding stand-by agreements and other uses of
the Fund’s resources.
(b) The Secretary of the Treasury shall direct, and the
U.S. Executive Director to the International Monetary
Fund shall agree to—
(1) provide any documents or information avail-
able to the Director that are requested by the Comp-
troller General;
(2) request from the Fund any documents or ma-
terial requested by the Comptroller General; and
148
(3) use all necessary means to ensure all possible
access by the Comptroller General to the staff and op-
erations of the Fund for the purposes of conducting fi-
nancial and program audits.
(c) The Secretary of the Treasury, in consultation with
the Comptroller General and the U.S. Executive Director
of the Fund, shall develop and implement a plan to obtain
timely public access to information and documents relating
to the Fund’s operations, programs and policy reviews and
decisions regarding stand-by agreements and other uses of
the Fund’s resources.
(d) No later than July 1, 1998 and, not later than
March 1 of each year thereafter, the Secretary of the Treas-
ury shall submit a report to the appropriate committees on
the status of timely publication of Letters of Intent and Ar-
ticle IV consultation documents and the availability of in-
formation referred to in (c).
SEC. 5003. ADVISORY COMMISSION. (a) The President
shall establish an International Financial Institution Advi-
sory Commission (hereafter ‘‘Commission’’).
(b) The Commission shall include at least five former
United States Secretaries of the Treasury.
(c) Within 180 days, the Commission shall report to
the appropriate committees on the future role and respon-
sibilities, if any, of the International Monetary Fund and
149
the merit, costs and related implications of consolidation
of the organization, management, and activities of the
International Monetary Fund, the International Bank for
Reconstruction and Development and the World Trade Or-
ganization.
SEC. 5004. BRETTON WOODS CONFERENCE. Not later
than 180 days after the Commission reports to the appro-
priate committees, the President shall call for a conference
of representatives of the governments of the member coun-
tries of the International Monetary Fund, the International
Bank for Reconstruction and Development and the World
Trade Organization to consider the structure, management
and activities of the institutions, their possible merger and
their capacity to contribute to exchange rate stability and
economic growth and to respond effectively to financial cri-
ses.
SEC. 5005. REPORTS. (a) Following the extension of
a stand-by agreement or other uses of the resources by the
International Monetary Fund, the Secretary of the Treas-
ury, in consultation with the U.S. Executive Director of
the Fund, shall submit a report to the appropriate commit-
tees providing the following information—
(1) the borrower’s rules and regulations dealing
with capitalization ratios, reserves, deposit insurance
system and initiatives to improve transparency of in-
150
formation on the financial institutions and banks
which may benefit from the use of the Fund’s re-
sources;
(2) the burden shared by private sector investors
and creditors, including commercial banks in the
Group of Seven Nations, in the losses which have
prompted the use of the Fund’s resources;
(3) the Fund’s strategy, plan and timetable for
completing the borrower’s pay back of the Fund’s re-
sources including a date by which the borrower will
be free from all international institutional debt obli-
gation; and
(4) the status of efforts to upgrade the borrower’s
national standards to meet the Basle Committee’s
Core Principles for Effective Banking Supervision.
(b) Following the extension of a stand-by agreement
or other use of the Fund’s resources, the Secretary of the
Treasury shall report to the appropriate committees in con-
junction with the annual submission of the President’s
budget, an account—
(1) of outcomes related to the requirements of sec-
tion 5010; and
(2) of the direct and indirect institutional re-
cipients of such resources: Provided, That this account
shall include the institutions or banks indirectly sup-
151
ported by the Fund through resources made available
by the borrower’s Central Bank.
(c) Not later than 30 days after the enactment of this
Act, the Secretary shall submit a report to the appropriate
committees of Congress providing the information requested
in paragraphs (a) and (b) for the countries of South Korea,
Indonesia, Thailand and the Philippines.
SEC. 5006. CERTIFICATIONS. (a) The Secretary of the
Treasury shall certify to the appropriate committees that
the following conditions have been met—
(1) No International Monetary Fund resources
have resulted in support to the semiconductor, steel,
automobile, shipbuilding, or textile and apparel in-
dustries in any form;
(2) The Fund has not guaranteed nor under-
written the private loans of semiconductor, steel, auto-
mobile, shipbuilding, or textile and apparel manufac-
turers; and
(3) Officials from the Fund and the Department
of the Treasury have monitored the implementation of
the provisions contained in stabilization programs in
effect after July 1, 1997, and all of the conditions
have either been met, or the recipient government has
committed itself to fulfill all of these conditions ac-
cording to an explicit timetable for completion; which
152
timetable has been provided to and approved by the
Fund and the Department of the Treasury.
(b) Such certifications shall be made 14 days prior to
the disbursement of any Fund resources to the borrower.
(c) The Secretary of the Treasury shall instruct the
United States Executive Director of the International Mon-
etary Fund to use the voice and vote of the Executive Direc-
tor to oppose disbursement of further funds if such certifi-
cation is not given.
(d) Such certifications shall continue to be made on
an annual basis as long as Fund contributions continue
to be outstanding to the borrower country.
(e) After consultation with the Secretary of the Treas-
ury and the United States Trade Representative, the Sec-
retary of Commerce shall establish a team composed of em-
ployees of the Department of Commerce—
(1) to collect data on import volumes and prices,
and industry statistics in—
(A) the steel industry;
(B) the semiconductor industry;
(C) the automobile industry;
(D) the textile and apparel industry; and
(E) shipbuilding;
(2) to monitor the effect of the Asian economic
crisis on these industries;
153
(3) to collect accounting data from Asian pro-
ducers; and
(4) to work to prevent import surges in these in-
dustries or to assist United States industries affected
by such surges in their efforts to protect themselves
under the trade laws of the United States.
(f) The Secretary of Commerce shall provide adminis-
trative support, including office space, for the team.
(g) The Secretary of the Treasury and the United
States Trade Representative may assign such employees to
the team as may be necessary to assist the team in carrying
out its functions under subsection (e).
SEC. 5007. LIMITATIONS ON INTERNATIONAL MONE-
TARY FUND LOANS TO INDONESIA. The Secretary of the
Treasury shall instruct the United States Executive Direc-
tor of the International Monetary Fund to use the voice and
vote of the United States to prevent the extension of Inter-
national Monetary Fund resources—
(1) directly to or for the direct benefit of the
President of Indonesia or any member of the Presi-
dent’s family; and
(2) the Secretary of the Treasury shall instruct
the Executive Director to use the United States voice
and vote to oppose further disbursement of funds to
Indonesia on any International Monetary Fund
154
terms or conditions less stringent than those imposed
on the Republic of Korea and the Philippines Repub-
lic.
SEC. 5008. ADVOCACY OF POLICIES TO ENHANCE THE
GENERAL EFFECTIVENESS OF THE INTERNATIONAL MONE-
TARY FUND. 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 United States to vigorously promote policies to encour-
age the opening of markets for agricultural commodities
and products by requiring recipient countries to make ef-
forts to reduce trade barriers.
SEC. 5009. ADVISORY COMMITTEE ON IMF POLICY. (a)
IN GENERAL.—The Secretary of the Treasury shall establish
an International Monetary Fund Advisory Committee (in
this section referred to as ‘‘Advisory Committee’’).
(b) MEMBERSHIP.—The Advisory Committee shall
consist of 8 members appointed by the Secretary of the
Treasury, after appropriate consultations with the relevant
organizations, as follows—
(1) at least 2 members shall be representatives
from organized labor;
(2) at least 2 members shall be representatives
from nongovernmental environmental organizations;
155
(3) at least 2 members shall be representatives
from nongovernmental human rights or social justice
organizations.
(c) DUTIES.—Not less frequently than every six
months, the Advisory Committee shall meet with the Sec-
retary of the Treasury to review and provide advice on the
extent to which individual International Monetary Fund
country programs meet requisite policy goals, particularly
those set forth as follows—
(1) in this Act;
(2) in Article I(2) of the Fund’s Articles of
Agreements, to promote and maintain high levels of
employment and real income and the development of
the productive resources of all members;
(3) in section 1621 of Public Law 103–306, the
Frank/Sanders amendment on encouragement of fair
labor practices;
(4) in section 1620 of Public Law 95–118, as
amended, on respect for, and full protection of, the
territorial rights, traditional economies, cultural in-
tegrity, traditional knowledge, and human rights of
indigenous peoples;
(5) in section 1502 of Public Law 95–118, as
amended, on military spending by recipient countries
156
and military involvement in the economies of recipi-
ent countries;
(6) in section 701 of Public Law 95–118, on as-
sistance to countries that engage in a pattern of gross
violations of internationally recognized human rights;
and
(7) in section 1307 of Public Law 95–118, on as-
sessments of the environmental impact and alter-
natives to proposed actions by the International Mon-
etary Fund which would have a significant effect on
the human environment.
(d) INAPPLICABILITY OF TERMINATION PROVISIONS OF
THE
FEDERAL
ADVISORY
COMMITTEE
ACT.—Section
14(a)(2) of the Federal Advisory Committee Act shall not
apply to the Advisory Committee.
SEC. 5010. BORROWER COUNTRIES. The Secretary of
the Treasury shall consult with the office of the United
States Trade Representative regarding prospective Inter-
national Monetary Fund borrower countries, including
their status with respect to title III of the Trade Act of 1974
or any executive order issued pursuant to the aforemen-
tioned title, and shall take these consultations into account
before instructing the United States Executive Director of
the International Monetary Fund on the United States po-
157
sition regarding loans or credits to such borrowing coun-
tries.
SEC. 5011. DEFINITIONS. For the purposes of this title,
‘‘appropriate committees’’ includes the Appropriations
Committee, the Committee on Foreign Relations, Committee
on Finance and the Committee on Banking, Housing and
Urban Affairs of the Senate and the Committee on Appro-
priations and the Committee on Banking and Financial
Services in the House of Representatives.
This title may be cited as the ‘‘1998 Supplemental Ap-
propriations Act for the International Monetary Fund’’.
This Act may be cited as the ‘‘1998 Emergency Supple-
mental Appropriations Act for Recovery From Natural Dis-
asters, and for Overseas Peacekeeping Efforts’’.
Passed the House of Representatives March 31,
1998.
Attest:
ROBIN H. CARLE,
Clerk.
Passed the Senate March 31, 1998.
Attest:
GARY SISCO,
Secretary.