[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 80 Reported in House (RH)]






                                                  House Calendar No. 24
104th CONGRESS
  1st Session
H. RES. 80

                          [Report No. 104-53]

    Requesting the President to submit information to the House of 
     Representatives concerning actions taken through the exchange 
  stabilization fund to strengthen the Mexican peso and stabilize the 
                           economy of Mexico.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 1995

 Ms. Kaptur (for herself, Mr. Abercrombie, Mr. DeFazio, Mr. Evans, Mr. 
  Hunter, Mr. Klink, Mr. Lipinski, Mr. Rohrabacher, Mr. Sanders, Mr. 
  Taylor of Mississippi, Mrs. Thurman, Mr. Visclosky, and Ms. Danner) 
submitted the following resolution; which was referred to the Committee 
                   on Banking and Financial Services

                           February 27, 1995

 Additional sponsors: Mrs. Chenoweth, Mr. Duncan, Mrs. Mink of Hawaii, 
  Mr. Talent, Mr. Traficant, Mr. Stearns, Mr. Burton of Indiana, Mr. 
Myers of Indiana, Mr. Hutchinson, Mr. Baker of California, Mr. Dornan, 
 Mr. Kingston, Mr. Dellums, Mr. Funderburk, Mr. Foley, Mr. Filner, Mr. 
               Gordon, Mr. Holden, and Mr. Brown of Ohio

                           February 27, 1995

Reported with an amendment, referred to the House Calendar, and ordered 
                             to be printed
[Strike out all after the resolving clause and insert the part printed 
                               in italic]
     [For text of introduced resolution, see copy of resolution as 
                    introduced on February 10, 1995]

                               RESOLUTION


 
    Requesting the President to submit information to the House of 
     Representatives concerning actions taken through the exchange 
  stabilization fund to strengthen the Mexican peso and stabilize the 
                           economy of Mexico.

    Resolved, That the President is hereby requested to provide to the 
House of Representatives (consistent with the rules of such House), not 
later than 14 days after the adoption of this resolution, the following 
documents in the possession of the executive branch, if not 
inconsistent with the public interest:
            (1) Any document concerning--
                    (A) the condition of the Mexican economy; and
                    (B) any consultations between the Government of 
                Mexico and the Secretary of the Treasury (or any 
                designee of the Secretary), the International Monetary 
                Fund, or the Bank for International Settlements.
            (2) Any document containing--
                    (A) a description of the activities of the central 
                bank of Mexico, including the reserve positions of such 
                central bank and data relating to the functioning of 
                Mexican monetary policy;
                    (B) information regarding the implementation and 
                the extent of wage, price, and credit controls in the 
                Mexican economy;
                    (C) a complete documentation of Mexican tax policy 
                and any proposed changes to such policy;
                    (D) a description of all financial transactions, 
                both inside and outside of Mexico, directly involving 
                funds disbursed from the exchange stabilization fund 
                and the International Monetary Fund, including 
                transactions with--
                            (i) individuals;
                            (ii) partnerships;
                            (iii) joint ventures; and
                            (iv) corporations;
                    (E) a list of planned or pending regulations of the 
                Government of Mexico affecting the private sector of 
                the Mexican economy; and
                    (F) any efforts to privatize public sector entities 
                in Mexico.
            (3) Any document concerning any legal analysis with regard 
        to the authority of the President or the Secretary of the 
        Treasury under section 5302 of title 31, United States Code, 
        the Bretton Woods Agreements Act, the Special Drawing Rights 
        Act, the Gold Reserve Act of 1934, or any other law or legal 
        authority to use the stabilization fund to implement the 
        President's proposed Mexican support package.
            (4) Any document concerning any legal opinion regarding the 
        applicability or nonapplicability of the provisions of the 
        Federal Credit Reform Act of 1990 to the exchange stabilization 
        fund.
            (5) Any document concerning any agreement between the 
        United States and the Government of Mexico (or any other 
        appropriate Mexican entity) to provide assured sources of 
        repayment for all payments by the United States in connection 
        with any short-, intermediate-, or long-term credit facility 
        made available to Mexico after December 31, 1994.
            (6) Any document concerning the implementation by the 
        President and the Secretary of the Treasury (or any designee of 
        the Secretary) of the authority under section 5302 of title 31, 
        United States Code, with respect to any credit facility 
        described in paragraph (5).
            (7) Any document concerning efforts by the international 
        community to stabilize the economy of Mexico and the current 
        status of negotiations with other countries to improve the 
        capacity of international institutions to handle similar 
        crises.
            (8) Any document concerning the extent to which Mexico is 
        complying with the terms and conditions agreed to in connection 
        with the exercise of the authority under section 5302 of title 
        31, United States Code, with respect to any credit facility 
        described in paragraph (5), including any document concerning 
        the extent to which--
                    (A) the Government of Mexico has agreed to use the 
                proceeds of any loan which has been made, or any 
                security for which any guarantee has been issued, 
                through any such facility to help strengthen the 
                Mexican peso and help stabilize financial and exchange 
                markets by facilitating the refinancing or redemption 
                of short-term debt instruments issued by the Government 
                of Mexico;
                    (B) the Government of Mexico has agreed to 
                provide--
                            (i) a comprehensive financial plan which 
                        includes a description of the intended use of 
                        any such loan or security; and
                            (ii) ongoing reports on the implementation 
                        of the financial plan while any such loan or 
                        security is outstanding;
                    (C) the Government of Mexico is respecting the 
                autonomy of the central bank of Mexico and the mandate 
                of such bank to seek stability with respect to the 
                purchasing power of the Mexican peso;
                    (D) the central bank of Mexico is pursuing a 
                noninflationary monetary and credit policy that 
controls credit expansion and the growth of the Mexican money supply in 
order to maintain the Mexican peso as a strong currency;
                    (E) the central bank of Mexico is providing on a 
                periodic basis to the Board of Governors of the Federal 
                Reserve System and other appropriate governmental 
                entities information necessary to make an assessment 
                with respect to the policy described in subparagraph 
                (D), including central bank money supply and monetary 
                policy data;
                    (F) the Government of Mexico is implementing the 
                privatization policy established by such Government to 
                transfer enterprises currently owned or controlled by 
                the Government to private ownership;
                    (G) the Government of Mexico continues to permit 
                entry of foreign direct investment into Mexico and the 
                repatriation of investments from Mexico by United 
                States nationals; and
                    (H) the Government of Mexico is pursuing market-
                oriented measures to stem the flow of domestically 
                owned capital from Mexico.
            (9) Any document concerning any analysis of the resources 
        which the International Monetary Fund has agreed to make 
        available in response to the Mexican financial crisis.
            (10) Any document concerning--
                    (A) the percentage of the resources which the 
                International Monetary Fund has agreed to make 
                available in response to the Mexican financial crisis 
                which are attributable to capital contributions to such 
                Fund by the United States; and
                    (B) the extent to which the participation of the 
                International Monetary Fund in international efforts to 
                strengthen the Mexican peso and stabilize the economy 
                of Mexico is likely to require additional contributions 
                to such Fund by the member states of the Fund, 
                including the United States.
            (11) Any document concerning any agreement between the 
        United States and the Government of Mexico detailing the fee 
        structure and the terms and conditions under which loans, loan 
        guarantees, and other financial support may be made available 
        to Mexico through the stabilization fund established under 
        section 5302 of title 31, United States Code, including--
                    (A) any document concerning background materials on 
                the assessment of the Mexican economy and any United 
                States Government rationalization for pressing the 
                central bank of Mexico to increase interest rates from 
                40 percent to 50 percent;
                    (B) any document concerning the framework agreement 
                entered into on or about February 21, 1995, which 
                serves as the umbrella accord for the provision of any 
                such loan, loan guarantee, or other financial support;
                    (C) any document concerning the medium-term 
                exchange stabilization agreement entered into on or 
                about February 21, 1995, which specifies the terms and 
                conditions for medium-term swap transactions between 
                the United States and Mexico;
                    (D) any document concerning the guarantee agreement 
                entered into on or about February 21, 1995, which 
                specifies the terms and conditions for the issuance of 
                guarantees by the United States of debt securities 
                issued by Mexico; and
                    (E) any document concerning the oil proceeds 
                facility agreement entered into on or about February 
                21, 1995, which establishes a mechanism to provide an 
                assured source of repayment of United States resources.
            (12) Any document concerning the assured source of 
        repayment to the United States for any short-, intermediate-, 
        or long-term credit facility made available to Mexico after 
        December 31, 1994.
            (13) Any document concerning the net worth of Pemex, the 
        historical annual revenues of Pemex, the projected annual 
        revenues during the 5-year period beginning on the date of the 
        adoption of this resolution, and the extent to which the 
        proceeds from the sale of Mexican oil to customers within 
        Mexico or outside of Mexico--
                    (A) are required to be paid to the Government of 
                Mexico as taxes or as payments in lieu of taxes; or
                    (B) have been pledged as collateral for the 
                repayment of any loans or other extensions of credit to 
                the Government of Mexico or to Pemex other than any 
                credit facility described in paragraph (12).
            (14) Any document concerning the value of any oil the 
        proceeds from the sale of which are pledged to assure the 
        repayment of any financial assistance provided by the United 
        States to Mexico, the documentation received by the United 
        States in connection with such pledge, and the manner in which 
        the United States may exercise any rights under such pledge to 
        obtain the proceeds as repayment for losses incurred.
            (15) Any document concerning any assurances given by the 
        Government of Mexico to the United States Government with 
        respect to changes in past economic policies or the adoption of 
        a new economic plan.
            (16) Any document concerning the decision by the President 
        to use the assets of the exchange stabilization fund 
        established under section 5302 of title 31, United States Code, 
        in connection with any short-, intermediate-, or long-term 
        credit facility made available to Mexico after December 31, 
        1994.
            (17) Any document concerning the criteria used by the 
        President or the Secretary of the Treasury (or any designee of 
        the Secretary) in making any decision to use the assets of the 
        exchange stabilization fund to respond to any economic, balance 
        of payments, or exchange crisis in any country and the facts on 
        which such determinations were made with respect to Poland, in 
        1989, and to Mexico in December of 1994 and early 1995.
            (18) Any document concerning how the use of the assets of 
        the exchange stabilization fund as a source of credit to Mexico 
        compares with all prior uses of the assets of the fund since 
        1945 for all other countries under section 5302 of title 31, 
        United States Code, with regard to--
                    (A) the dollar amount of each transaction;
                    (B) the type of the transaction, such as loan, loan 
                guarantee, or swap agreement (as defined in section 
                11(e)(8)(D)(vi) of the Federal Deposit Insurance Act);
                    (C) the purpose of the transaction, such as whether 
                it was to support the United States dollar, to support 
                a foreign currency, or any other purpose;
                    (D) the duration, in years, of the transaction 
                during which any credit was or is permitted to remain 
                outstanding;
                    (E) any security or collateral pledged to assure 
                repayment with respect to each such transaction; and
                    (F) the existence of any agreement involving the 
                International Monetary Fund or the Board of Governors 
                of the Federal Reserve System in connection with each 
                such transaction and the terms of each agreement by 
                such Fund or Board.
            (19) Any document concerning debts owed by the Government 
        of Mexico and any entity owned or controlled by the Government 
        of Mexico to United States public or private creditors which 
        are outstanding as of the date of the adoption of this 
        resolution, the status of each such debt (including whether 
        such debt has been refinanced), and the collateral or security 
        pledged to assure repayment of such debt.
            (20) Any document concerning an accounting of all the fund 
        flows through the exchange stabilization fund established under 
        section 5302 of title 31, United States Code, during the 24-
        month period ending on the date of the adoption of this 
        resolution, including the identification of the amount of and 
        purpose for each transaction involving such fund during such 
        period.
            (21) Any document concerning the balance of available 
        assets in the exchange stabilization fund as of the date of the 
        adoption of this resolution.
            (22) Any document concerning the amount by which the total 
        principal amount of loans, loan guarantees, and other 
        extensions of credit which the President has announced will be 
        made available to Mexico exceeds the total amount of available 
        assets in the exchange stabilization fund established under 
        section 5302 of title 31, United States Code, and the means for 
        covering the shortfall, if any.
            (23) Any document concerning the departure of the 
        International Monetary Fund from the Fund's customary 
        guidelines for country assistance, including any recommendation 
        made by the President or any other officer or employee in the 
        executive branch to the Fund regarding the amount of financial 
        assistance the Fund was preparing to make available to Mexico, 
        and any reciprocal agreement made by the executive branch to 
        the Fund for making such assistance available in an amount 
        greatly in excess of the customary guidelines.
            (24) Any document concerning the factual circumstances 
        pursuant to which the Bank for International Settlements has 
        become a lender to individual countries beyond the Bank's 
        customary role as a clearinghouse for central banks.
            (25) Any document concerning the financial obligations of 
        the Board of Governors of the Federal Reserve System to the 
        Bank for International Settlements.
            (26) Any document concerning the relationship among the 
        Board of Governors of the Federal Reserve System, the Bank for 
        International Settlements, and the central banks of other 
        countries which are affiliated with such Bank in any manner 
        with regard to assigning or apportioning the ultimate liability 
        for any loss incurred in connection with the extension of 
        credit by such Bank to the Government of Mexico.
            (27) Any document concerning any discrepancy between the 
        amount the President announced is available in the exchange 
        stabilization fund established under section 5302 of title 31, 
        United States Code, and the amount shown as being available in 
        such Fund in the monthly statement of the public debt of the 
        United States on December 31, 1994.
            (28) Any document concerning conditions which were put on 
        the credit facilities made available to Mexico through the 
        exchange stabilization fund or the Board of Governors of the 
        Federal Reserve System that were requested by members of the 
        investment community.




                                                  House Calendar No. 24

104th CONGRESS

  1st Session

                               H. RES. 80

                          [Report No. 104-53]

_______________________________________________________________________

                               RESOLUTION

    Requesting the President to submit information to the House of 
     Representatives concerning actions taken through the exchange 
  stabilization fund to strengthen the Mexican peso and stabilize the 
                           economy of Mexico.

_______________________________________________________________________

                           February 27, 1995

Reported with an amendment, referred to the House Calendar, and ordered 
                             to be printed