HR 3580 RH
achieve a significant contribution by the private
creditors, investors, and banks which had ex-
tended such credits.
‘‘(6) Vigorously promote policies that would
make the International Monetary Fund a more ef-
fective mechanism, in concert with appropriate inter-
national authorities and other international financial
institutions (as defined in section 1701(c)(2)), for
promoting good governance principles within recipi-
ent countries by fostering structural reforms, includ-
ing procurement reform, that reduce opportunities
for corruption and bribery, and drug-related money
laundering.
‘‘(7) Vigorously promote the design of Inter-
national Monetary Fund programs and assistance so
that governments that draw on the International
Monetary Fund channel public funds away from un-
productive purposes, including large ‘show case’
projects and excessive military spending, and toward
investment in human and physical capital as well as
social programs to protect the neediest and promote
social equity.
‘‘(8) Work with the International Monetary
Fund to foster economic prescriptions that are ap-
propriate to the individual economic circumstances
HR 3580 RH
of each recipient country, recognizing that inappro-
priate stabilization programs may only serve to fur-
ther destabilize the economy and create unnecessary
economic, social, and political dislocation.
‘‘(9) Structure International Monetary Fund
programs and assistance so that the maintenance
and improvement of core labor standards are rou-
tinely incorporated as an integral goal in the policy
dialogue with recipient countries, so that—
‘‘(A) recipient governments commit to af-
fording workers the right to exercise inter-
nationally recognized core worker rights, includ-
ing the right of free association and collective
bargaining through unions of their own choos-
ing;
‘‘(B) measures designed to facilitate labor
market flexibility are consistent with such core
worker rights; and
‘‘(C) the staff of the International Mone-
tary Fund surveys the labor market policies and
practices of recipient countries and recommends
policy initiatives that will help to ensure the
maintenance or improvement of core labor
standards.
HR 3580 RH
‘‘(10) Vigorously promote International Mone-
tary Fund programs and assistance that are struc-
tured to the maximum extent feasible to discourage
practices which may promote ethnic or social strife
in a recipient country.
‘‘(11) Vigorously promote recognition by the
International Monetary Fund that macroeconomic
developments and policies can affect and be affected
by environmental conditions and policies, and urge
the International Monetary Fund to encourage mem-
ber countries to pursue macroeconomic stability
while promoting environmental protection.
‘‘(12) Facilitate greater International Monetary
Fund transparency, including by enhancing acces-
sibility of the International Monetary Fund and its
staff, fostering a more open release policy toward
working papers, past evaluations, and other Inter-
national Monetary Fund documents, seeking to pub-
lish all Letters of Intent to the International Mone-
tary Fund and Policy Framework Papers, and estab-
lishing a more open release policy regarding Article
IV consultations.
‘‘(13) Facilitate greater International Monetary
Fund accountability and enhance International Mon-
etary Fund self-evaluation by vigorously promoting
HR 3580 RH
review of the effectiveness of the Office of Internal
Audit and Inspection and the Executive Board’s ex-
ternal evaluation pilot program and, if necessary, the
establishment of an operations evaluation depart-
ment modeled on the experience of the International
Bank for Reconstruction and Development, guided
by such key principles as usefulness, credibility,
transparency, and independence.
‘‘(14) Vigorously promote coordination with the
International Bank for Reconstruction and Develop-
ment and other international financial institutions
(as defined in section 1701(c)(2)) in promoting
structural reforms which facilitate the provision of
credit to small businesses, including microenterprise
lending, especially in the world’s poorest, heavily in-
debted countries.
‘‘(b) COORDINATION WITH OTHER EXECUTIVE DE-
PARTMENTS.—To the extent that it would assist in achiev-
ing the goals described in subsection (a), the Secretary
of the Treasury shall pursue the goals in coordination with
the Secretary of State, the Secretary of Labor, the Sec-
retary of Commerce, the Administrator of the Environ-
mental Protection Agency, the Administrator of the Agen-
cy for International Development, and the United States
Trade Representative.’’.
HR 3580 RH
(b) ADVISORY COMMITTEE ON IMF POLICY.—Sec-
tion 1701 of such Act (22 U.S.C. 262p–5) is amended
by adding at the end the following:
‘‘(e) ADVISORY COMMITTEE ON IMF POLICY.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury shall establish an International Monetary
Fund Advisory Committee (in this subsection re-
ferred to as the ‘Advisory Committee’).
‘‘(2) MEMBERSHIP.—The Advisory Committee
shall consist of 9 members appointed by the Sec-
retary of the Treasury, after appropriate consulta-
tions with the relevant organizations, as follows:
‘‘(A) 1 member shall be a former Secretary
or Deputy Secretary of the Treasury, who shall
serve as the chairman of the Advisory Commit-
tee.
‘‘(B) 2 members shall be representatives
from organized labor.
‘‘(C) 2 members shall be representatives
from banking and financial services.
‘‘(D) 2 members shall be representatives
from industry and agriculture.
‘‘(E) 2 members shall be representatives
from 
nongovernmental 
environmental 
and
human rights organizations.
HR 3580 RH
‘‘(3) DUTIES.—Not less frequently than every 6
months, the Advisory Committee shall meet with the
Secretary of the Treasury or the Deputy Secretary
of the Treasury to review, and provide advice on, the
extent to which individual country International
Monetary Fund programs meet the policy goals set
forth in this Act regarding the International Mone-
tary Fund.
‘‘(4) INAPPLICABILITY OF TERMINATION PROVI-
SION
OF
THE
FEDERAL
ADVISORY
COMMITTEE
ACT.—Section 14(a)(2) of the Federal Advisory
Committee Act shall not apply to the Advisory Com-
mittee.’’.
AVAILABILITY OF INTERNATIONAL MONETARY FUND LET-
TERS
OF
INTENT
REGARDING
AGREEMENTS
RE-
QUIRED IN ORDER TO RECEIVE ASSISTANCE
SEC. 408. Title XV of the International Financial In-
stitutions Act (22 U.S.C. 262o–262o-1) is further amend-
ed by adding at the end the following:
‘‘SEC. 1504. DENIAL OF FEDERAL FUNDS TO THE INTER-
NATIONAL MONETARY FUND IF ITS OPER-
ATIONS 
ARE 
NOT 
MADE 
MORE 
TRANS-
PARENT.
‘‘(a) IN GENERAL.—Beginning 6 months after the
date of the enactment of this section, an officer, employee,
or agent of the United States may not, directly or indi-
HR 3580 RH
rectly, provide Federal funds to, or for the benefit of, the
International Monetary Fund unless there is in effect a
written certification, made by the Secretary of the Treas-
ury to the Committee on Banking and Financial Services
of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, that
the International Monetary Fund has met the require-
ments of subsection (b).
‘‘(b) REQUIREMENTS.—The requirements of this sub-
section are the following:
‘‘(1) Within 3 months after any meeting of the
Board of Governors or the Executive Board of the
International Monetary Fund, an edited copy of the
minutes of the meeting shall be made available for
public inspection, with the following information re-
dacted:
‘‘(A) Information which, if released, would
adversely affect the national security of a coun-
try, and which is of the type that would be clas-
sified by United States Government.
‘‘(B) Information which, if released, would
disrupt markets.
‘‘(C) Proprietary information.
‘‘(2) Within 3 months after staff of the Inter-
national Monetary Fund makes a written review or
HR 3580 RH
assessment of any proposed or ongoing loan program
of the International Monetary Fund, a copy of the
review or assessment shall be made available for
public inspection, with the following information re-
dacted:
‘‘(A) Information which, if released, would
adversely affect the national security of a coun-
try, and which is of the type that would be clas-
sified by United States Government.
‘‘(B) Information which, if released, would
disrupt markets.
‘‘(C) Proprietary information.
‘‘(c) EFFECTIVE PERIOD OF CERTIFICATION.—
‘‘(1) IN GENERAL.—A certification made under
this section shall cease to be in effect 1 year after
the date the certification is made.
‘‘(2) REVOCATION.—
‘‘(A) IN GENERAL.—A certification made
under this section shall cease to be in effect if
the Secretary of the Treasury revokes the cer-
tification.
‘‘(B) CAUSE FOR REVOCATION.—The Sec-
retary of the Treasury shall revoke a certifi-
cation made under this section if the Secretary
of the Treasury is made aware that the Inter-
HR 3580 RH
national Monetary Fund has ceased to meet a
requirement of subsection (b).’’.
ENFORCEMENT OF INDONESIAN COMPLIANCE WITH RE-
FORMS REQUIRED BY THE INTERNATIONAL MONE-
TARY FUND
SEC. 409. The Secretary of the Treasury shall certify
to the Committee on Banking and Financial Services of
the House of Representatives and the Committee on For-
eign Relations of the Senate that the United States Execu-
tive Director at the International Monetary Fund will op-
pose further disbursements of funds to Indonesia unless
the Indonesian government complies with the terms of its
International Monetary Fund reform package.
SENSE OF THE CONGRESS ON THE ROLE OF JAPAN IN
RESTORING REGIONAL AND GLOBAL ECONOMIC GROWTH
SEC. 410. It is the sense of the Congress that Japan
should assume a greater regional leadership role, which
would coincide with Japan’s goal of promoting strong do-
mestic demand-led growth and avoiding a significant in-
crease in its external surplus with the United States and
the countries of the Asia-Pacific region.
HR 3580 RH
SEMIANNUAL
REPORTS
ON
FINANCIAL
STABILIZATION
PROGRAMS LED BY THE INTERNATIONAL MONETARY
FUND IN CONNECTION WITH FINANCING FROM THE
EXCHANGE STABILIZATION FUND
SEC. 411. Title XVII of the International Financial
Institutions Act (22 U.S.C. 262r–262r-2) is amended by
adding at the end the following:
‘‘SEC. 1704. REPORTS ON FINANCIAL STABILIZATION PRO-
GRAMS LED BY THE INTERNATIONAL MONE-
TARY FUND IN CONNECTION WITH FINANC-
ING FROM THE EXCHANGE STABILIZATION
FUND.
‘‘(a) IN GENERAL.—The Secretary of the Treasury,
in consultation with the Secretary of Commerce and other
appropriate Federal agencies, shall prepare reports on the
implementation of financial stabilization programs (and
any material terms and conditions thereof) led by the
International Monetary Fund in countries 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. The reports shall include the following:
‘‘(1) A description of the condition of the econo-
mies of countries requiring the financial stabilization
HR 3580 RH
programs, including the monetary, fiscal, and ex-
change rate policies of the countries.
‘‘(2) A description of the degree to which the
countries requiring the financial stabilization pro-
grams have fully implemented financial sector re-
structuring and reform measures required by the
International Monetary Fund, including—
‘‘(A) ensuring full respect for the commer-
cial orientation of commercial bank lending;
‘‘(B) ensuring that governments will not
intervene in bank management and lending de-
cisions (except in regard to prudential super-
vision);
‘‘(C) the enactment and implementation of
appropriate financial reform legislation;
‘‘(D) strengthening the domestic financial
system and improving transparency and super-
vision; and
‘‘(E) the opening of domestic capital mar-
kets.
‘‘(3) A description of the degree to which the
countries requiring the financial stabilization pro-
grams have fully implemented reforms required by
the International Monetary Fund that are directed
HR 3580 RH
at corporate governance and corporate structure, in-
cluding—
‘‘(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 bail out individual corporations, particularly
in the semiconductor, steel, and paper indus-
tries.
‘‘(4) 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.
‘‘(5) 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.
HR 3580 RH
‘‘(6) A description of the extent to which the fi-
nancial stabilization programs have resulted in ap-
propriate burden-sharing among private sector credi-
tors, including rescheduling of outstanding loans by
lengthening maturities, agreements on debt reduc-
tion, and the extension of new credit.
‘‘(7) A description of the extent to which the
economic adjustment policies of the International
Monetary Fund and the policies of the government
of the country adequately balance the need for finan-
cial stabilization, economic growth, environmental
protection, social stability, and equity for all ele-
ments of the society.
‘‘(8) Whether International Monetary Fund in-
volvement in labor market flexibility measures has
had a negative effect on core worker rights, particu-
larly the rights of free association and collective bar-
gaining.
‘‘(9) A description of any pattern of abuses of
core worker rights in recipient countries.
‘‘(10) The amount, rate of interest, and dis-
bursement and repayment schedules of any funds
disbursed from the stabilization fund established
under section 5302 of title 31, United States Code,
HR 3580 RH
in the form of loans, credits, guarantees, or swaps,
in support of the financial stabilization programs.
‘‘(11) The amount, rate of interest, and dis-
bursement and repayment schedules of any funds
disbursed by the International Monetary Fund to
the countries in support of the financial stabilization
programs.
‘‘(b) TIMING.—Not later than October 1, 1998, and
semiannually thereafter, the Secretary of the Treasury
shall submit to the Committees on Banking and Financial
Services and International Relations of the House of Rep-
resentatives and the Committees on Foreign Relations,
and Banking, Housing, and Urban Affairs of the Senate
a report on the matters described in subsection (a).’’.
REPORTS ON REFORMING THE ARCHITECTURE OF THE
INTERNATIONAL FINANCIAL SYSTEM
SEC. 412. (a) FINDINGS.—The Congress finds that,
in order to ensure that the International Monetary Fund
does not become the global lender of last resort to private
sector corporations and financial institutions, and in order
to help prevent future threats to the international finan-
cial system, the Secretary of the Treasury and the Chair-
man of the Board of Governors of the Federal Reserve
System, working with their counterparts in other countries
and with international organizations as appropriate,
should—
HR 3580 RH
(1) seek to establish a broad set of international
transparency principles on accounting and disclosure
policies and practices covering, in particular, private
sector financial organizations;
(2) promote improvements in the provision by
both borrowers and lenders of timely and com-
prehensive aggregate information on cross-border fi-
nancial stocks and flows;
(3) seek an international accord establishing
uniform minimum standards with respect to robust
banking and supervisory systems, which individual
countries should be required to meet as a condition
for the establishment of subsidiaries, branches, or
other offices of banking institutions from their coun-
tries in the jurisdictions of the countries participat-
ing in the accord;
(4) immediately initiate with appropriate rep-
resentatives of the countries that are members of the
International Monetary Fund discussions aimed at
securing national treatment for United States inves-
tors in such countries; and
(5) seek to establish internationally acceptable
bankruptcy standards and should work particularly
to have International Monetary Fund recipient coun-
tries adopt such standards.
HR 3580 RH
banks and financial institutions, in the resolu-
tion of crises.
(2) TIMING.—The Secretary of the Treasury
shall submit to the Committees on Banking and Fi-
nancial Services and International Relations of the
House of Representatives and the Committees on
Foreign Relations and Banking, Housing, and
Urban Affairs of the Senate 2 interim reports on the
matters described in paragraph (1), the first of
which is due by October 1, 1998, and the second of
which is due on April 1, 1999, and a final report on
such matters, which is due on October 1, 1999.
ANNUAL
REPORT
AND
TESTIMONY
ON
THE
STATE
OF
THE INTERNATIONAL FINANCIAL SYSTEM, IMF RE-
FORM, AND COMPLIANCE WITH IMF AGREEMENTS
SEC. 413. Title XVII of the International Financial
Institutions Act (22 U.S.C. 262r–262r-2) is further
amended by adding at the end the following:
‘‘SEC. 1705. ANNUAL REPORT AND TESTIMONY ON THE
STATE OF THE INTERNATIONAL FINANCIAL
SYSTEM, IMF REFORM, AND COMPLIANCE
WITH IMF AGREEMENTS.
‘‘(a) REPORTS.—Not later than October 1 of each
year, the Secretary of the Treasury shall submit to the
Committee on Banking and Financial Services of the
House of Representatives and the Committee on Foreign
HR 3580 RH
CHAPTER 11
DEPARTMENT OF DEFENSE—MILITARY
CONSTRUCTION
Notwithstanding any other provision of law, using
amounts appropriated in Public Law 104–196 for ‘‘Mili-
tary Construction, Navy’’, for the military construction
project for North Island Naval Air Station, California, and
contributions (if any) provided by the State of California
and local governments to support that project, the Sec-
retary of the Navy, in cooperation with local governments,
shall carry out beach replenishment in connection with
that project using sand obtained from any location. The
contributions (if any) provided by the State of California
and local governments shall be available only for beach
replenishment activities performed after the date of the
enactment of this Act.
TITLE II—RESCISSIONS
DEPARTMENT OF AGRICULTURE
AGRICULTURAL RESEARCH SERVICE
(RESCISSION)
Of the funds made available under this heading in
Public Law 105–86, $223,000 are rescinded.