I
105TH CONGRESS
1ST SESSION
H. R. 2085
To amend the Export-Import Bank Act of 1945 to ensure that the provision
of assistance for exports to China is conditioned upon adherence to
responsible conduct.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 1997
Mr. EVANS (for himself, Ms. PELOSI, Mr. FRANK of Massachusetts, Mr.
STARK, Mr. SANDERS, Ms. KAPTUR, and Mr. BONIOR) introduced the fol-
lowing bill; which was referred to the Committee on Banking and Finan-
cial Services
A BILL
To amend the Export-Import Bank Act of 1945 to ensure
that the provision of assistance for exports to China
is conditioned upon adherence to responsible conduct.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. EXPORT-IMPORT BANK ASSISTANCE FOR EX-
PORTS TO CHINA CONDITIONED ON ADHER-
ENCE TO CODE OF CONDUCT.
(a) IN GENERAL.—Section 2(b) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)) is amended by add-
ing at the end the following:
‘‘(f) ASSISTANCE FOR EXPORTS TO CHINA CONDI-
TIONED UPON ADHERENCE TO CODE OF CONDUCT.—
‘‘(1) PROHIBITIONS.—
‘‘(A) PRE-ASSISTANCE
CONDITION.—The
Bank shall not guarantee, insure, extend credit,
or participate in the extension of credit to an
entity with respect to the export of any good or
service destined for the People’s Republic of
China unless the Board of Directors determines
that the entity has established and is adhering
to the code of conduct set forth in paragraph
(2).
‘‘(B) 
PENALTY
FOR
VIOLATION.—The
Bank shall withdraw any guarantee, insurance,
or credit that the Bank has provided, and shall
withdraw from any participation in an extension
of credit, to an entity with respect to the export
of any good or service destined for the People’s
Republic of China if the Board of Directors de-
termines that the entity is not adhering to the
code of conduct set forth in paragraph (2).
‘‘(2) CODE OF CONDUCT.—An entity shall do
all of the following in all of its operations:
‘‘(A) Provide a safe and healthy workplace.
‘‘(B) Ensure fair employment, including
by—
‘‘(i) avoiding child and forced labor,
and discrimination based upon race, gen-
der, national origin, or religious beliefs;
‘‘(ii) respecting freedom of association
and the right to organize and bargain col-
lectively;
‘‘(iii) paying not less than the mini-
mum wage required by law or the prevail-
ing industry wage, whichever is higher; and
‘‘(iv) providing all legally mandated
benefits.
‘‘(C) Obey all applicable environmental
laws.
‘‘(D) Comply with United States and local
laws promoting good business practices, includ-
ing laws prohibiting illicit payments and ensur-
ing fair competition.
‘‘(E) Maintain, through leadership at all
levels, a corporate culture—
‘‘(i) which respects free expression
consistent with legitimate business con-
cerns, and does not condone political coer-
cion in the workplace;
‘‘(ii) which encourages good corporate
citizenship and makes a positive contribu-
tion to the communities in which the entity
operates; and
‘‘(iii) in which ethical conduct is rec-
ognized, valued, and exemplified by all em-
ployees.
‘‘(F) Require similar behavior by partners,
suppliers, and subcontractors under terms of
contracts.
‘‘(G) Implement and monitor compliance
with the subparagraphs (A) through (F)
through a program that is designed to prevent
and detect noncompliance by any employee or
supplier of the entity and that includes—
‘‘(i) standards for ethical conduct of
employees of the entity and of suppliers
which refer to the subparagraphs;
‘‘(ii) procedures for assignment of ap-
propriately qualified personnel at the man-
agement level to monitor and enforce com-
pliance;
‘‘(iii) procedures for reporting non-
compliance by employees and suppliers;
‘‘(iv) procedures for selecting qualified
individuals who are not employees of the
entity or of suppliers to monitor compli-
ance, and for assessing the effectiveness of
such compliance monitoring;
‘‘(v) procedures for disciplinary action
in response to noncompliance;
‘‘(vi) procedures designed to ensure
that, in cases in which noncompliance is
detected, reasonable steps are taken to cor-
rect the noncompliance and prevent similar
noncompliance from occurring; and
‘‘(vii) communication of all standards
and procedures with respect to the code of
conduct to every employee and supplier—
‘‘(I) by requiring all management
level employees and suppliers to par-
ticipate in a training program; or
‘‘(II) by disseminating informa-
tion orally and in writing, through
posting of an explanation of the
standards and procedures in promi-
nent places sufficient to inform all
employees and suppliers, in the local
languages spoken by employees and
managers.
‘‘(3) SMALL BUSINESS EXCEPTION.—This sub-
section shall not apply to an entity that is a small
business (within the meaning of the Small Business
Act).’’.
(b) ANNUAL REPORT.—Section 2(b)(1)(A) of such
Act (12 U.S.C. 635(b)(1)(A)) is amended by adding at
the end the following: ‘‘The Bank shall include in the an-
nual report a description of the actions the Bank has
taken to comply with subsection (f) during the period cov-
ered by the report.’’.
(c) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the Export-Import Bank of the United
States and the Clearinghouse on Corporate Responsibility
that is being developed by the Department of Commerce
should work together to ensure that businesses are made
aware of, and have access to, resources and organizations
that can assist businesses in developing, implementing,
and monitoring global codes of corporate conduct.
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