[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5561 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5561

 To require foreign countries to meet certain requirements relating to 
political freedom, transparency, accountability, and good governance in 
order to be eligible to receive cancellation or reduction of debt owed 
                         to the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2000

   Mr. Wolf introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committee 
  on Banking and Financial Services, 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 require foreign countries to meet certain requirements relating to 
political freedom, transparency, accountability, and good governance in 
order to be eligible to receive cancellation or reduction of debt owed 
                         to the United States.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsible Debt Relief and 
Democracy Reform Act''.

SEC. 2. ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION OF DEBT 
              OWED TO THE UNITED STATES.

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

  ``PART VI--ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION OF 
                     DEBT OWED TO THE UNITED STATES

``SEC. 901. CANCELLATION OR REDUCTION OF DEBT.

    ``Beginning on and after the date of the enactment of this part, 
the President may cancel or reduce amounts owed to the United States 
(or any agency of the United States) by foreign countries as a result 
of concessional or nonconcessional loans made, guarantees issued, or 
credits extended under any other provision of law only if, in addition 
to the requirements contained under the applicable provisions of law 
providing authority for the debt cancellation or reduction, the 
requirements contained in section 902 are satisfied.

``SEC. 902. ADDITIONAL REQUIREMENTS.

    ``(a) In General.--A foreign country shall be eligible for 
cancellation or reduction of debt under any other provision of law only 
if the government of the country--
            ``(1) ensures freedom of the press;
            ``(2) ensures freedom of association;
            ``(3) has established an independent and nondiscriminatory 
        judiciary;
            ``(4) provides for the reduction or elimination of 
        corruption relating to public officials, including--
                    ``(A) the promulgation of laws to prohibit bribery 
                of and by public officials, including disclosure of 
                assets by such officials upon taking office, 
                periodically while in office, and upon leaving office;
                    ``(B) the establishment of an independent anti-
                corruption commission--
                            ``(i) to receive and verify the disclosure 
                        of assets by public officials in accordance 
                        with subparagraph (A); and
                            ``(ii) to investigate allegations or 
                        corruption or misconduct by public officials 
                        and to make all findings available to the 
                        appropriate administrative or judicial 
                        entities; and
                    ``(C) the establishment of an independent agency--
                            ``(i) to audit the financial activities of 
                        public officials and agencies; and
                            ``(ii) to make all audits under clause (i) 
                        available to the appropriate administrative or 
                        judicial entities;
            ``(5) is elected through free and fair elections;
            ``(6) does not engage in a consistent pattern of gross 
        violations of internationally recognized human rights; and
            ``(7) does not repeatedly provided support for acts of 
        international terrorism, as determined by the Secretary of 
        State under section 6(j)(1) of the Export Administration Act of 
        1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).
    ``(b) Exceptions.--The President may waive the application of 1 or 
more of the requirements of subsection (a) with respect to the 
cancellation or reduction of debt owed to the United States by a 
foreign country--
            ``(1) for emergency humanitarian relief purposes;
            ``(2) if the President determines that it is in the 
        national security interests of the United States to do so; or
            ``(3) if the President determines that the foreign country 
        is making demonstrable progress in meeting the requirements of 
        paragraphs (1) through (7) of subsection (a) by adopting 
        appropriate legal and other related reforms.
    ``(c) Congressional Notification.--Not later than 7 days prior to 
the cancellation or reduction of debt in accordance with section 901, 
the President shall transmit to the Congress a report that contains a 
justification for the determination by the President that--
            ``(1) the requirements contained in each of paragraphs (1) 
        through (7) of subsection (a) have been satisfied with respect 
        to the foreign country involved; or
            ``(2) the requirement of paragraph (1), (2), or (3) of 
        subsection (b) has been satisfied with respect to the foreign 
        country involved.''.

SEC. 3. SENSE OF THE CONGRESS RELATING TO CANCELLATION OR REDUCTION OF 
              MULTILATERAL DEBT.

    It is the sense of the Congress that the President should instruct 
the United States Executive Director at each international financial 
institution to which the United States is a member to use the voice, 
vote, and influence of the United States to urge that the cancellation 
or reduction of debt owed to the institution by a country may be 
provided only if the country meets the same requirements applicable to 
the cancellation or reduction of amounts owed to the United States 
under paragraphs (1) through (7) of section 902(b) of the Foreign 
Assistance Act of 1961 (as added by section 2).
                                 <all>