[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2870 Reported in House (RH)]





                                                 Union Calendar No. 251

105th CONGRESS

  2d Session

                               H. R. 2870

                          [Report No. 105-443]

_______________________________________________________________________

                                 A BILL

To amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
                           tropical forests.

_______________________________________________________________________

                             March 13, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 251
105th CONGRESS
  2d Session
                                H. R. 2870

                          [Report No. 105-443]

To amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
                           tropical forests.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 7, 1997

Mr. Portman (for himself, Mr. Kasich, and Mr. Hamilton) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

                             March 13, 1998

Additional sponsors: Ms. Furse, Mr. Ewing, Mr. Hastert, Mrs. Maloney of 
New York, Mr. Klug, Ms. Pryce of Ohio, Mr. LaTourette, Mr. Chabot, Mr. 
   Brown of Ohio, Mr. Stokes, Mr. Sawyer, Mr. Pastor, Mr. Camp, Mr. 
  Latham, Mr. Faleomavaega, Mr. Lipinski, Mr. Wexler, Mr. Kolbe, Mr. 
  Dooley of California, Mr. Sherman, Mr. Gallegly, Mr. Ackerman, Mr. 
Luther, Mr. Bilbray, Mrs. Kelly, Mr. Hobson, Mr. Leach, Mr. Shays, Mr. 
  McHugh, Ms. Woolsey, Mr. Gutierrez, Mr. Lantos, Mr. Ballenger, Mr. 
      Campbell, Mr. Smith of New Jersey, Mr. Skaggs, Mr. Frank of 
Massachusetts, Mr. English of Pennsylvania, Mr. Bereuter, Mr. Manzullo, 
                       Ms. Kaptur, and Mr. Porter

                             March 13, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 7, 1997]

_______________________________________________________________________

                                 A BILL


 
To amend the Foreign Assistance Act of 1961 to facilitate protection of 
tropical forests through debt reduction with developing countries with 
                           tropical forests.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL 
              FORESTS.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by adding at the end the following:

``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS

``SEC. 801. SHORT TITLE.

    ``This part may be cited as the `Tropical Forest Conservation Act 
of 1998'.

``SEC. 802. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds the following:
            ``(1) It is the established policy of the United States to 
        support and seek protection of tropical forests around the 
        world.
            ``(2) Tropical forests provide a wide range of benefits to 
        humankind by--
                    ``(A) harboring a major share of the Earth's 
                biological and terrestrial resources, which are the 
                basis for developing pharmaceutical products and 
                revitalizing agricultural crops;
                    ``(B) playing a critical role as carbon sinks in 
                reducing greenhouse gases in the atmosphere, thus 
                moderating potential global climate change; and
                    ``(C) regulating hydrological cycles on which far-
                flung agricultural and coastal resources depend.
            ``(3) International negotiations and assistance programs to 
        conserve forest resources have proliferated over the past 
        decade, but the rapid rate of tropical deforestation continues 
        unabated.
            ``(4) Developing countries with urgent needs for investment 
        and capital for development have allocated a significant amount 
        of their forests to logging concessions.
            ``(5) Poverty and economic pressures on the populations of 
        developing countries have, over time, resulted in clearing of 
        vast areas of forest for conversion to agriculture, which is 
        often unsustainable in the poor soils underlying tropical 
        forests.
            ``(6) Debt reduction can reduce economic pressures on 
        developing countries and result in increased protection for 
        tropical forests.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to recognize the values received by United States 
        citizens from protection of tropical forests;
            ``(2) to facilitate greater protection of tropical forests 
        (and to give priority to protecting tropical forests with the 
        highest levels of biodiversity and under the most severe 
threat) by providing for the alleviation of debt in countries where 
tropical forests are located, thus allowing the use of additional 
resources to protect these critical resources and reduce economic 
pressures that have led to deforestation;
            ``(3) to ensure that resources freed from debt in such 
        countries are targeted to protection of tropical forests and 
        their associated values; and
            ``(4) to rechannel existing resources to facilitate the 
        protection of tropical forests.

``SEC. 803. DEFINITIONS.

    ``As used in this part:
            ``(1) Administering body.--The term `administering body' 
        means the entity provided for in section 809(c).
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    ``(B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            ``(3) Beneficiary country.--The term `beneficiary country' 
        means an eligible country with respect to which the authority 
        of section 806(a)(1), section 807(a)(1), or paragraph (1) or 
        (2) of section 808(a) is exercised.
            ``(4) Board.--The term `Board' means the board referred to 
        in section 811.
            ``(5) Developing country with a tropical forest.--The term 
        `developing country with a tropical forest' means--
                    ``(A)(i) a country that has a per capita income of 
                $725 or less in 1994 United States dollars (commonly 
                referred to as `low-income country'), as determined and 
                adjusted on an annual basis by the International Bank 
                for Reconstruction and Development in its World 
                Development Report; or
                    ``(ii) a country that has a per capita income of 
                more than $725 but less than $8,956 in 1994 United 
                States dollars (commonly referred to as `middle-income 
                country'), as determined and adjusted on an annual 
                basis by the International Bank for Reconstruction and 
                Development in its World Development Report; and
                    ``(B) a country that contains at least one tropical 
                forest that is globally outstanding in terms of its 
                biological diversity or represents one of the larger 
                intact blocks of tropical forests left, on a regional, 
                continental, or global scale.
            ``(6) Eligible country.--The term `eligible country' means 
        a country designated by the President in accordance with 
        section 805.
            ``(7) Tropical forest agreement.--The term `Tropical Forest 
        Agreement' or `Agreement' means a Tropical Forest Agreement 
        provided for in section 809.
            ``(8) Tropical forest facility.--The term `Tropical Forest 
        Facility' or `Facility' means the Tropical Forest Facility 
        established in the Department of the Treasury by section 804.
            ``(9) Tropical forest fund.--The term `Tropical Forest 
        Fund' or `Fund' means a Tropical Forest Fund provided for in 
        section 810.

``SEC. 804. ESTABLISHMENT OF THE FACILITY.

    ``There is established in the Department of the Treasury an entity 
to be known as the `Tropical Forest Facility' for the purpose of 
providing for the administration of debt reduction in accordance with 
this part.

``SEC. 805. ELIGIBILITY FOR BENEFITS.

    ``(a) In General.--To be eligible for benefits from the Facility 
under this part, a country shall be a developing country with a 
tropical forest--
            ``(1) whose government meets the requirements applicable to 
        Latin American or Caribbean countries under paragraphs (1) 
        through (5) and (7) of section 703(a) of this Act;
            ``(2) that has put in place major investment reforms, as 
        evidenced by the conclusion of a bilateral investment treaty 
        with the United States, implementation of an investment sector 
        loan with the Inter-American Development Bank, World Bank-
        supported investment reforms, or other measures, as 
        appropriate; and
            ``(3) whose government meets other requirements related to 
        its environmental policies and practices, as determined by the 
        President.
    ``(b) Eligibility Determinations.--
            ``(1) In general.--Consistent with subsection (a), the 
        President shall determine whether a country is eligible to 
        receive benefits under this part.
            ``(2) Congressional notification.--The President shall 
        notify the appropriate congressional committees of his 
        intention to designate a country as an eligible country at 
least 15 days in advance of any formal determination.

``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CONCESSIONAL LOANS UNDER THE FOREIGN ASSISTANCE ACT OF 
              1961.

    ``(a) Authority To Reduce Debt.--
            ``(1) Authority.--The President may reduce the amount owed 
        to the United States (or any agency of the United States) that 
        is outstanding as of January 1, 1997, as a result of 
        concessional loans made to an eligible country by the United 
        States under part I of this Act, chapter 4 of part II of this 
        Act, or predecessor foreign economic assistance legislation.
            ``(2) Authorization of appropriations.--For the cost (as 
        defined in section 502(5) of the Federal Credit Reform Act of 
        1990) for the reduction of any debt pursuant to this section, 
        there are authorized to be appropriated to the President--
                    ``(A) $25,000,000 for fiscal year 1999;
                    ``(B) $75,000,000 for fiscal year 2000; and
                    ``(C) $100,000,000 for fiscal year 2001.
            ``(3) Certain prohibitions inapplicable.--
                    ``(A) In general.--A reduction of debt pursuant to 
                this section shall not be considered assistance for 
                purposes of any provision of law limiting assistance to 
                a country.
                    ``(B) Additional requirement.--The authority of 
                this section may be exercised notwithstanding section 
                620(r) of this Act or section 321 of the International 
                Development and Food Assistance Act of 1975.
    ``(b) Implementation of Debt Reduction.--
            ``(1) In general.--Any debt reduction pursuant to 
        subsection (a) shall be accomplished at the direction of the 
        Facility by the exchange of a new obligation for obligations of 
        the type referred to in subsection (a) outstanding as of the 
        date specified in subsection (a)(1).
            ``(2) Exchange of obligations.--
                    ``(A) In general.--The Facility shall notify the 
                agency primarily responsible for administering part I 
                of this Act of an agreement entered into under 
                paragraph (1) with an eligible country to exchange a 
                new obligation for outstanding obligations.
                    ``(B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement shall be canceled and a new debt 
                obligation for the country shall be established 
                relating to the agreement, and the agency primarily 
                responsible for administering part I of this Act shall 
                make an adjustment in its accounts to reflect the debt 
                reduction.
    ``(c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of debt under 
subsection (a)(1) in the same manner as such terms and conditions apply 
to the reduction of debt under section 704(a)(1) of this Act:
            ``(1) The provisions relating to repayment of principal 
        under section 705 of this Act.
            ``(2) The provisions relating to interest on new 
        obligations under section 706 of this Act.

``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A RESULT OF 
              CREDITS EXTENDED UNDER TITLE I OF THE AGRICULTURAL TRADE 
              DEVELOPMENT AND ASSISTANCE ACT OF 1954.

    ``(a) Authority To Reduce Debt.--
            ``(1) Authority.--Notwithstanding any other provision of 
        law, the President may reduce the amount owed to the United 
        States (or any agency of the United States) that is outstanding 
        as of January 1, 1997, as a result of any credits extended 
        under title I of the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a country 
        eligible for benefits from the Facility.
            ``(2) Authorization of appropriations.--
                    ``(A) In general.--For the cost (as defined in 
                section 502(5) of the Federal Credit Reform Act of 
                1990) for the reduction of any debt pursuant to this 
                section, there are authorized to be appropriated to the 
                President--
                            ``(i) $25,000,000 for fiscal year 1999;
                            ``(ii) $50,000,000 for fiscal year 2000; 
                        and
                            ``(iii) $50,000,000 for fiscal year 2001.
                    ``(B) Limitation.--The authority provided by this 
                section shall be available only to the extent that 
                appropriations for the cost (as defined in section 
                502(5) of the Federal Credit Reform Act of 1990) of the 
                modification of any debt pursuant to this section are 
                made in advance.
    ``(b) Implementation of Debt Reduction.--
            ``(1) In general.--Any debt reduction pursuant to 
        subsection (a) shall be accomplished at the direction of the 
        Facility by the exchange of a new obligation for obligations of 
        the type referred to in subsection (a) outstanding as of the 
        date specified in subsection (a)(1).
            ``(2) Exchange of obligations.--
                    ``(A) In general.--The Facility shall notify the 
                Commodity Credit Corporation of an agreement entered 
                into under paragraph (1) with an eligible country to 
                exchange a new obligation for outstanding obligations.
                    ``(B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement shall be canceled and a new debt 
                obligation shall be established for the country 
                relating to the agreement, and the Commodity Credit 
                Corporation shall make an adjustment in its accounts to 
                reflect the debt reduction.
    ``(c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of debt under 
subsection (a)(1) in the same manner as such terms and conditions apply 
to the reduction of debt under section 604(a)(1) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1738c):
            ``(1) The provisions relating to repayment of principal 
        under section 605 of such Act.
            ``(2) The provisions relating to interest on new 
        obligations under section 606 of such Act.

``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT 
              BUYBACKS.

    ``(a) Loans and Credits Eligible for Sale, Reduction, or 
Cancellation.--
            ``(1) Debt-for-nature swaps.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the President may, in accordance with 
                this section, sell to any eligible purchaser described 
                in subparagraph (B) any concessional loans described in 
                section 806(a)(1) or any credits described in section 
                807(a)(1), or on receipt of payment from an eligible 
                purchaser described in subparagraph (B), reduce or 
                cancel such loans (or credits) or portion thereof, only 
                for the purpose of facilitating a debt-for-nature swap 
                to support eligible activities described in section 
                809(d).
                    ``(B) Eligible purchaser described.--A loan or 
                credit may be sold, reduced, or canceled under 
                subparagraph (A) only to a purchaser who presents plans 
                satisfactory to the President for using the loan or 
                credit for the purpose of engaging in debt-for-nature 
                swaps to support eligible activities described in 
                section 809(d).
                    ``(C) Consultation requirement.--Before the sale 
                under subparagraph (A) to any eligible purchaser 
                described in subparagraph (B), or any reduction or 
                cancellation under such subparagraph (A), of any loan 
                or credit made to an eligible country, the President 
                shall consult with the country concerning the amount of 
                loans or credits to be sold, reduced, or canceled and 
                their uses for debt-for-nature swaps to support 
                eligible activities described in section 809(d).
                    ``(D) Authorization of appropriations.--For the 
                cost (as defined in section 502(5) of the Federal 
                Credit Reform Act of 1990) for the reduction of any 
                debt pursuant to subparagraph (A), amounts authorized 
                to be appropriated under sections 806(a)(2) and 
                807(a)(2) shall be made available for such reduction of 
                debt pursuant to subparagraph (A).
            ``(2) Debt buybacks.--Notwithstanding any other provision 
        of law, the President may, in accordance with this section, 
        sell to any eligible country any concessional loans described 
        in section 806(a)(1) or any credits described in section 
        807(a)(1), or on receipt of payment from an eligible country, 
        reduce or cancel such loans (or credits) or portion thereof, 
        only for the purpose of facilitating a debt buyback by an 
        eligible country of its own qualified debt, only if the 
        eligible country uses an additional amount of the local 
        currency of the eligible country, equal to not less than the 
        lesser of 40 percent of the price paid for such debt by such 
        eligible country, or the difference between the price paid for 
        such debt and the face value of such debt, to support eligible 
        activities described in section 809(d).
            ``(3) Limitation.--The authority provided by paragraphs (1) 
        and (2) shall be available only to the extent that 
        appropriations for the cost (as defined in section 502(5) of 
        the Federal Credit Reform Act of 1990) of the modification of 
        any debt pursuant such paragraphs are made in advance.
            ``(4) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        and credits may be sold, reduced, or canceled pursuant to this 
        section.
            ``(5) Administration.--
                    ``(A) In general.--The Facility shall notify the 
                administrator of the agency primarily responsible for 
                administering part I of this Act or the Commodity 
                Credit Corporation, as the case may be, of eligible 
purchasers described in paragraph (1)(B) that the President has 
determined to be eligible under paragraph (1), and shall direct such 
agency or Corporation, as the case may be, to carry out the sale, 
reduction, or cancellation of a loan pursuant to such paragraph.
                    ``(B) Additional requirement.--Such agency or 
                Corporation, as the case may be, shall make an 
                adjustment in its accounts to reflect the sale, 
                reduction, or cancellation.
    ``(b) Deposit of Proceeds.--The proceeds from the sale, reduction, 
or cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.

``SEC. 809. TROPICAL FOREST AGREEMENT.

    ``(a) Authority.--
            ``(1) In general.--The Secretary of State is authorized, in 
        consultation with other appropriate officials of the Federal 
        Government, to enter into a Tropical Forest Agreement with any 
        eligible country concerning the operation and use of the Fund 
        for that country.
            ``(2) Consultation.--In the negotiation of such an 
        Agreement, the Secretary shall consult with the Board in 
        accordance with section 811.
    ``(b) Contents of Agreement.--The requirements contained in section 
708(b) of this Act (relating to contents of an agreement) shall apply 
to a Agreement in the same manner as such requirements apply to an 
Americas Framework Agreement.
    ``(c) Administering Body.--
            ``(1) In general.--Amounts disbursed from the Fund in each 
        beneficiary country shall be administered by a body constituted 
        under the laws of that country.
            ``(2) Composition.--
                    ``(A) In general.--The administering body shall 
                consist of--
                            ``(i) one or more individuals appointed by 
                        the United States Government;
                            ``(ii) one or more individuals appointed by 
                        the government of the beneficiary country; and
                            ``(iii) individuals who represent a broad 
                        range of--
                                    ``(I) environmental nongovernmental 
                                organizations of, or active in, the 
                                beneficiary country;
                                    ``(II) local community development 
                                nongovernmental organizations of the 
                                beneficiary country; and
                                    ``(III) scientific or academic 
                                organizations or institutions of the 
                                beneficiary country.
                    ``(B) Additional requirement.--A majority of the 
                members of the administering body shall be individuals 
                described in subparagraph (A)(iii).
            ``(3) Responsibilities.--The requirements contained in 
        section 708(c)(3) of this Act (relating to responsibilities of 
        the administering body) shall apply to an administering body 
        described in paragraph (1) in the same manner as such 
        requirements apply to an administering body described in 
        section 708(c)(1) of this Act.
    ``(d) Eligible Activities.--Amounts deposited in a Fund shall be 
used to provide grants to preserve, maintain, and restore the tropical 
forests in the beneficiary country, including one or more of the 
following activities:
            ``(1) Establishment, restoration, protection, and 
        maintenance of parks, protected areas, and reserves.
            ``(2) Development and implementation of scientifically 
        sound systems of natural resource management, including land 
        and ecosystem management practices.
            ``(3) Training programs to strengthen conservation 
        institutions and increase scientific, technical, and managerial 
        capacities of individuals and organizations involved in 
        conservation efforts.
            ``(4) Restoration, protection, or sustainable use of 
        diverse animal and plant species.
            ``(5) Mitigation of greenhouse gases in the atmosphere.
            ``(6) Development and support of the livelihoods of 
        individuals living in or near a tropical forest, including the 
        cultures of such individuals, in a manner consistent with 
        protecting such tropical forest.
    ``(e) Grant Recipients.--
            ``(1) In general.--Grants made from a Fund shall be made 
        to--
                    ``(A) nongovernmental environmental, conservation, 
                and indigenous people organizations of, or active in, 
                the beneficiary country;
                    ``(B) other appropriate local or regional entities 
                of, or active in, the beneficiary country; and
                    ``(C) in exceptional circumstances, the government 
                of the beneficiary country.
            ``(2) Priority.--In providing grants under paragraph (1), 
        priority shall be given to projects that are run by 
        nongovernmental organizations and other private entities and 
        that involve local communities in their planning and execution.
    ``(f) Review of Larger Grants.--Any grant of more than $100,000 
from a Fund shall be subject to veto by the Government of the United 
States or the government of the beneficiary country.
    ``(g) Eligibility Criteria.--In the event that a country ceases to 
meet the eligibility requirements set forth in section 805(a), as 
determined by the President pursuant to section 805(b), then grants 
from the Fund for that country may only be made to nongovernmental 
organizations until such time as the President determines that such 
country meets the eligibility requirements set forth in section 805(a).

``SEC. 810. TROPICAL FOREST FUND.

    ``(a) Establishment.--Each beneficiary country that enters into a 
Tropical Forest Agreement under section 809 shall be required to 
establish a Tropical Forest Fund to receive payments of interest on new 
obligations undertaken by the beneficiary country under this part.
    ``(b) Requirements Relating to Operation of Fund.--The following 
terms and conditions shall apply to the Fund in the same manner as such 
terms and conditions apply to an Enterprise for the Americas Fund under 
section 707 of this Act:
            ``(1) The provision relating to deposits under subsection 
        (b) of such section.
            ``(2) The provision relating to investments under 
        subsection (c) of such section.
            ``(3) The provision relating to disbursements under 
        subsection (d) of such section.

``SEC. 811. BOARD.

    ``(a) Enterprise for the Americas Board.--The Enterprise for the 
Americas Board established under section 610(a) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1738i(a)) shall, 
in addition to carrying out the responsibilities of the Board under 
section 610(c) of such Act, carry out the duties described in 
subsection (c) of this section for the purposes of this part.
    ``(b) Additional Membership.--
            ``(1) In general.--The Enterprise for the Americas Board 
        shall be composed of an additional four members appointed by 
        the President as follows:
                    ``(A) Two representatives from the United States 
                Government.
                    ``(B) Two representatives from private 
                nongovernmental environmental, scientific, and academic 
                organizations with experience and expertise in 
                preservation, maintenance, and restoration of tropical 
                forests.
            ``(2) Chairperson.--Notwithstanding section 610(b)(2) of 
        the Agricultural Trade Development and Assistance Act of 1954 
        (7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board 
        shall be headed by a chairperson who shall be appointed by the 
        President from among the representatives appointed under 
        section 610(b)(1)(A) of such Act or paragraph (1)(A) of this 
        subsection.
    ``(c) Duties.--The duties described in this subsection are as 
follows:
            ``(1) Advise the Secretary of State on the negotiations of 
        Tropical Forest Agreements.
            ``(2) Ensure, in consultation with--
                    ``(A) the government of the beneficiary country,
                    ``(B) nongovernmental organizations of the 
                beneficiary country,
                    ``(C) nongovernmental organizations of the region 
                (if appropriate),
                    ``(D) environmental, scientific, and academic 
                leaders of the beneficiary country, and
                    ``(E) environmental, scientific, and academic 
                leaders of the region (as appropriate),
        that a suitable administering body is identified for each Fund.
            ``(3) Review the programs, operations, and fiscal audits of 
        each administering body.

``SEC. 812. CONSULTATIONS WITH THE CONGRESS.

    ``The President shall consult with the appropriate congressional 
committees on a periodic basis to review the operation of the Facility 
under this part and the eligibility of countries for benefits from the 
Facility under this part.

``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.

    ``(a) In General.--Not later than December 31 of each fiscal year, 
the President shall prepare and transmit to the Congress an annual 
report concerning the operation of the Facility for the prior fiscal 
year. Such report shall include--
            ``(1) a description of the activities undertaken by the 
        Facility during the previous fiscal year;
            ``(2) a description of any Agreement entered into under 
        this part;
            ``(3) a report on any Funds that have been established 
        under this part and on the operations of such Funds; and
            ``(4) a description of any grants that have been provided 
        by administering bodies pursuant to Agreements under this part.
    ``(b) Supplemental Views in Annual Report.--Not later than December 
15 of each fiscal year, each member of the Board shall be entitled to 
receive a copy of the report required under subsection (a). Each member 
of the Board may prepare and submit supplemental views to the President 
on the implementation of this part by December 31 for inclusion in the 
annual report when it is transmitted to Congress pursuant to this 
section.''.