I
107TH CONGRESS
1ST SESSION
H. R. 391
To require foreign countries to meet certain requirements relating to political
freedom, transparency, accountability, and good governance in order to
be eligible to receive cancellation or reduction of debt owed to the United
States.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 2001
Mr. WOLF introduced the following bill; which was referred to the Committee
on International Relations, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To require foreign countries to meet certain requirements
relating to political freedom, transparency, accountability,
and good governance in order to be eligible to receive
cancellation or reduction of debt owed to the United
States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Responsible Debt Re-
lief and Democracy Reform Act’’.
SEC. 2. ADDITIONAL REQUIREMENTS FOR CANCELLATION
OR REDUCTION OF DEBT OWED TO THE
UNITED STATES.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by adding at the end the following:
‘‘PART 
VI—ADDITIONAL 
REQUIREMENTS 
FOR
CANCELLATION OR REDUCTION OF DEBT
OWED TO THE UNITED STATES
‘‘SEC. 901. CANCELLATION OR REDUCTION OF DEBT.
‘‘Beginning on and after the date of the enactment
of this part, the President may cancel or reduce amounts
owed to the United States (or any agency of the United
States) by foreign countries as a result of concessional or
nonconcessional loans made, guarantees issued, or credits
extended under any other provision of law only if, in addi-
tion to the requirements contained under the applicable
provisions of law providing authority for the debt cancella-
tion or reduction, the requirements contained in section
902 are satisfied.
‘‘SEC. 902. ADDITIONAL REQUIREMENTS.
‘‘(a) IN GENERAL.—A foreign country shall be eligi-
ble for cancellation or reduction of debt under any other
provision of law only if the government of the country—
‘‘(1) ensures freedom of the press;
‘‘(2) ensures freedom of association;
‘‘(3) has established an independent and non-
discriminatory judiciary;
‘‘(4) provides for the reduction or elimination of
corruption relating to public officials, including—
‘‘(A) the promulgation of laws to prohibit
bribery of and by public officials, including dis-
closure of assets by such officials upon taking
office, periodically while in office, and upon
leaving office;
‘‘(B) the establishment of an independent
anti-corruption commission—
‘‘(i) to receive and verify the disclo-
sure of assets by public officials in accord-
ance with subparagraph (A); and
‘‘(ii) to investigate allegations or cor-
ruption or misconduct by public officials
and to make all findings available to the
appropriate administrative or judicial enti-
ties; and
‘‘(C) the establishment of an independent
agency—
‘‘(i) to audit the financial activities of
public officials and agencies; and
‘‘(ii) to make all audits under clause
(i) available to the appropriate administra-
tive or judicial entities;
‘‘(5) is elected through free and fair elections;
‘‘(6) does not engage in a consistent pattern of
gross violations of internationally recognized human
rights; and
‘‘(7) does not repeatedly provided support for
acts of international terrorism, as determined by the
Secretary of State under section 6(j)(1) of the Ex-
port Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)) or section 620A(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2371(a)).
‘‘(b) EXCEPTIONS.—The President may waive the ap-
plication of 1 or more of the requirements of subsection
(a) with respect to the cancellation or reduction of debt
owed to the United States by a foreign country—
‘‘(1) for emergency humanitarian relief pur-
poses;
‘‘(2) if the President determines that it is in the
national security interests of the United States to do
so; or
‘‘(3) if the President determines that the for-
eign country is making demonstrable progress in
meeting the requirements of paragraphs (1) through
(7) of subsection (a) by adopting appropriate legal
and other related reforms.
‘‘(c) CONGRESSIONAL
NOTIFICATION.—Not later
than 7 days prior to the cancellation or reduction of debt
in accordance with section 901, the President shall trans-
mit to the Congress a report that contains a justification
for the determination by the President that—
‘‘(1) the requirements contained in each of
paragraphs (1) through (7) of subsection (a) have
been satisfied with respect to the foreign country in-
volved; or
‘‘(2) the requirement of paragraph (1), (2), or
(3) of subsection (b) has been satisfied with respect
to the foreign country involved.’’.
SEC. 3. SENSE OF THE CONGRESS RELATING TO CAN-
CELLATION OR REDUCTION OF MULTILAT-
ERAL DEBT.
It is the sense of the Congress that the President
should instruct the United States Executive Director at
each international financial institution to which the
United States is a member to use the voice, vote, and in-
fluence of the United States to urge that the cancellation
or reduction of debt owed to the institution by a country
may be provided only if the country meets the same re-
quirements applicable to the cancellation or reduction of
amounts owed to the United States under paragraphs (1)
through (7) of section 902(b) of the Foreign Assistance
Act of 1961 (as added by section 2).
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