[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3573 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3573

   To impose certain limitations on disbursements from the Exchange 
    Stabilization Fund to certain countries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 27, 1998

 Mr. Dingell (for himself, Mr. Murtha, and Mr. Regula) introduced the 
  following bill; which was referred to the Committee on Banking and 
Financial Services, and in addition to the Committees on International 
    Relations, and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To impose certain limitations on disbursements from the Exchange 
    Stabilization Fund to certain countries, and for other purposes.

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

SECTION 1. LIMITATION ON DISBURSEMENTS FROM THE EXCHANGE STABILIZATION 
              FUND TO CERTAIN COUNTRIES.

    Section 5302 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Limitation on Disbursements to Countries Not in Compliance 
With Certain IMF Commitments.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section and subject to paragraph (2), the Secretary of the 
        Treasury may not make any expenditure or loan, incur any other 
        obligation, or make any guarantee in excess of $500,000,000 
        through the stabilization fund, for the purpose of engaging in 
        a coordinated international rescue plan for any foreign entity 
        or any government of a foreign country, unless the Secretary 
        certifies to the Congress that such foreign country is meeting 
        its commitments to the International Monetary Fund with respect 
        to economic, market access, and financial reforms.
            ``(2) Aggregation rule.--For purposes of determining 
        whether the amount of any expenditure, loan, obligation, or 
        guarantee described in paragraph (1) with respect to any 
        foreign entity or government of a foreign country exceeds the 
        amount of the limitation imposed in such paragraph, the 
        Secretary of the Treasury shall take into account the aggregate 
        amount of all expenditures, loans, obligations, or guarantees 
        which have been made or incurred through the stabilization fund 
        with respect to such country for the purpose described in such 
        paragraph during the 6-month period preceding the date such 
        expenditure, loan, obligation, or guarantee is made or 
        incurred.''.

SEC. 2. REPORT TO THE CONGRESS ON ACTIONS BY THE UNITED STATES TO 
              MONITOR FOREIGN GOVERNMENT COMPLIANCE WITH COMMITMENTS 
              MADE TO THE IMF IN CONNECTION WITH FINANCIAL ASSISTANCE 
              PACKAGES.

    (a) In General.--Not less frequently than semiannually, the 
Secretary of the Treasury shall submit to the Congress a report on the 
steps that the United States Government is taking to monitor the 
compliance of foreign governments in Asia with commitments made to the 
International Monetary Fund in connection with financial assistance 
packages provided or arranged by the International Monetary Fund.
    (b) Certain Matters To Be Included.--Each report required by 
subsection (a) shall include--
            (1) a description of the actions that the United States 
        Executive Director at the International Monetary Fund has taken 
        to ensure that the International Monetary Fund adequately and 
        effectively monitors and enforces the commitments referred to 
        in subsection (a); and
            (2) a description of the actions that the Department of the 
        Treasury has taken, in coordination with actions of the Office 
        of the United States Trade Representative or the Department of 
        Commerce, to monitor and enforce the commitments.

SEC. 3. MONITORING OF EFFECTS OF THE ASIAN FINANCIAL CRISIS ON THE 
              UNITED STATES AND OTHER ECONOMIES.

    (a) Commerce Department Report on Compliance by Asian Countries 
With Obligations Under International Agreements.--In coordination with 
the United States Trade Representative, the Secretary of Commerce shall 
monitor the progress that countries in Asia receiving financial 
assistance described in section 1 or 2 are making in implementing 
commitments they have made under international agreements to provide 
access to their markets for foreign goods and services. The Secretary 
shall report to the Congress the results of such monitoring on a 
bimonthly basis, beginning not later than 90 days after the date of the 
enactment of this Act, until the financial assistance for each such 
Asian country has been terminated. Each such report shall include the 
following:
            (1) A description of the progress made in resolving issues 
        in dispute in the investigation initiated by the United States 
        Trade Representative under section 301(b)(1) of the Trade Act 
        of 1974 on October 1, 1997, pursuant to section 310 of that 
        Act, in which tariff and nontariff barriers imposed by the 
        Republic of Korea were identified as denying United States and 
        other foreign automobiles access to markets in Korea.
            (2) A description of the progress made by the Republic of 
        Korea in implementing its obligations under the United States-
        Korea Memorandum of Understanding of 1995 concerning trade in 
        motor vehicles.
            (3) A description of the extent to which Indonesia is 
        complying with its commitments to terminate benefits to its 
        ``National Car'' program.
            (4) A description of the degree to which the countries have 
        fully implemented reforms required by the International 
        Monetary Fund that are directed at corporate governance and 
        corporate structure, including--
                    (A) making nontransparent conglomerate practices 
                more transparent through the application of 
                internationally accepted accounting practices, 
independent external audits, full disclosure, and provision of 
consolidated statements; and
                    (B) ensuring that no government subsidized support 
                or tax privileges will be provided to prevent the 
                financial failure of individual corporations, 
                particularly in the semiconductor, steel, motor 
                vehicle, and paper industries.
            (5) A description of the implementation of reform measures 
        required by the International Monetary Fund to deregulate and 
        privatize economic activity by ending domestic monopolies, 
        undertaking trade liberalization, and opening up restricted 
        areas of the economy to foreign investment and competition.
            (6) 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.
With regard to instances identified by the Secretary in which a country 
in Asia addressed in the report has failed to implement its obligations 
under international agreements to provide access to its markets for 
foreign goods and services, the Secretary, together with the United 
States Trade Representative, shall take appropriate action under the 
laws of the United States and under international dispute settlement 
procedures to enforce United States rights as a result of such failure.
    (b) Commerce Department Report on Third Country Actions To Accept 
Increased Asian Exports.--The Secretary of Commerce shall monitor 
exports of goods and services from those countries in Asia receiving 
financial assistance described in section 1 or 2 to determine the 
degree to which Japan, the countries of the European Union, and other 
major participants in the International Monetary Fund are opening their 
markets to any increase in those exports. The Secretary shall report to 
the Congress the results of such monitoring on a bimonthly basis, 
beginning not later than 90 days after the date of the enactment of 
this Act, until the financial assistance for each such Asian country 
has been terminated. The Secretary, together with the Secretary of the 
Treasury and the United States Trade Representative, shall take all 
appropriate action that would result in those countries opening their 
markets to exports from those Asian countries in order to more 
equitably share the burden of responding to the financial crisis in 
Asia.
    (c) Commerce Department Report on Export Surges to the United 
States.--The Secretary of Commerce shall monitor exports from those 
countries in Asia receiving financial assistance described in section 1 
or 2 to the United States to determine whether there is any significant 
increase in exports to the United States due to fluctuations in 
currency valuations, government subsidies, dumping, or transshipment 
through third countries. In conducting such monitoring, the Secretary 
shall take into account any outstanding antidumping and countervailing 
duty determinations on imports from those Asian countries. The 
Secretary shall report to the Congress the results of such monitoring 
on a bimonthly basis, beginning not later than 90 days after the date 
of the enactment of this Act, until the financial assistance for each 
such Asian country has been terminated. The Secretary shall take 
appropriate action under the laws of the United States where there is 
evidence of dumping or subsidization causing injury to United States 
industries.
    (d) Consultation With Industry.--In carrying out the requirements 
of this section, the Secretary shall consult with representatives of 
import-sensitive United States industries for the purpose of sharing 
and confirming information and views that are relevant to the 
monitoring and reports required by this section.
    (e) Report on Effect of Financial Assistance.--The Secretary of 
Commerce, in consultation with the United States Trade Representative, 
shall report to the Congress annually, beginning not later than one 
year after the date of the enactment of this Act, concerning the extent 
to which financial assistance described in section 1 or 2 is 
contributing to economically sound financial, open market, trade, and 
commercial relations between each country in Asia receiving such 
assistance and other countries.

SEC. 4. FULL ENFORCEMENT OF TRADE LAW REMEDIES.

    (a) Study.--To ensure the effectiveness of United States remedies 
against dumped and subsidized imports, the Secretary of Commerce shall 
conduct a study, in consultation with import-sensitive United States 
industries, to determine the appropriate application of United States 
antidumping and countervailing duty laws to imports from Asian 
countries, in light of currency devaluations and financial assistance 
described in section 1 or 2 that those countries have received. Such 
study shall--
            (1) determine the appropriate treatment of rapid 
        fluctuations in exchange rates that can severely reduce the 
        price of goods sold in an exporter's home market (when 
        converted to United States dollars) so that such fluctuations 
        do not undermine the effectiveness of United States antidumping 
        laws;
            (2) determine the appropriate treatment under United States 
        countervailing duty laws of the difference between the interest 
        rates on government-induced low-interest loans and the interest 
        rates, if higher, that private lenders would demand for loans 
        to the foreign companies concerned, taking into account the 
        current levels of risk; and
            (3) determine the appropriate treatment under United States 
        countervailing duty laws of subsidies received in the past, 
        even if the exporter or other producer of the subsidized 
        merchandise has been sold or privatized or has declared 
        bankruptcy.
    (b) Report to Congress.--The Secretary of Commerce shall complete 
the study conducted under subsection (a), and submit to the Congress a 
report on the study, by not later than 6 months after the date of the 
enactment of this Act.

SEC. 5. SUNSET.

    The provisions of this Act shall cease to be effective 8 years 
after the date of the enactment of this Act.
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