[Congressional Record Volume 141, Number 204 (Tuesday, December 19, 1995)]
[House]
[Pages H15107-H15108]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      REAUTHORIZING TIED AID CREDIT PROGRAM OF EXPORT-IMPORT BANK

  Mr. CASTLE. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2203) to reauthorize the tied aid credit program of the 
Export-Import Bank of the United States, and to allow the Export-Import 
Bank to conduct a demonstration project, as amended.
  The Clerk read as follows:

                               H.R. 2203

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

     SECTION 1. EXTENSION OF TIED AID CREDIT PROGRAM.

       (a) Section 10(c)(2) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635i-3(c)(2)) is amended by striking ``1995'' and 
     inserting ``1997''.
       (b) Section 10(e) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635i-3(e)) is amended by striking the first sentence 
     and inserting the following: ``There are authorized to be 
     appropriated to the Fund such sums as may be necessary for 
     each of fiscal years 1996 and 1997.''.

     SEC. 2. AUTHORITY TO CONDUCT A DEMONSTRATION PROJECT.

       Notwithstanding section 4701(a)(1)(A) of title 5, United 
     States Code, the Export-Import Bank of the United States may 
     conduct a demonstration project in accordance with section 
     4703 of such title.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Delaware [Mr. Castle] will be recognized for 20 minutes, and the 
gentleman from New York [Mr. Flake] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Delaware [Mr. Castle].
  Mr. CASTLE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today I rise in support of H.R. 2203, a bill that 
protects American businesses from unfair trading practices of other 
countries, primarily Japan and Germany. I am grateful to enjoy the 
support of Representative Jim Leach, chairman of the Committee on 
Banking and Financial Services. On the other side of the aisle, 
Representative Gonzalez, former committee chairman, and Representative 
Flake, the ranking member of the subcommittee have provided their 
strong support 

[[Page H15108]]
for this legislation, and I appreciate their efforts.
  Mr. Speaker, the Subcommittee on Domestic and International Monetary 
Policy has primary jurisdiction over the tied aid credit program of the 
Export-Import Bank. A subcommittee hearing and markup was held on 
September 7, 1995, and H.R. 2203 was favorably reported out of 
subcommittee by voice vote. The previous authorization expired on 
September 30, 1995; American exporters have been at a severe 
disadvantage since then. This authorization is necessary to protect 
American exporters and their trading in developing countries.
  Mr. Speaker, the tied aid program is an important tool for American 
companies against international exporters. The tied aid matching 
authority allows the Ex-Im Bank to respond to American exporters' need 
for competitive financing in developing markets. Tied aid, in the form 
of grants and loans, is defined as below-market rate confessional 
financing, used for purchasing capital tools manufactured in the 
developed country. By matching foreign countries' offers of aid, the 
Ex-Im Bank has forced those countries to withdraw several of their 
offers, and has matched 33 other offers worth almost $2 billion of 
potential export sales. Additionally, the Ex-Im Bank's tied aid credit 
has had a chilling effect on excessive use of tied aid by foreign 
countries.
  Mr. Speaker, the tied aid program levels the playing field of 
international trade, and permits recipient countries to compare project 
on the basis of price, technology, quality, delivery, and service. The 
manager's amendment substitutes an indefinite authorization for tied 
aid credits in place of the authorization contained in the introduced 
bill of $500 million per year. Previous spending has not exceeded $100 
million per annum. This bill does not affect direct spending on 
receipts, and is not subject to pay-as-you-go procedures.
  H.R. 2203 protects American trade and businesses. I urge its 
immediate adoption.

                              {time}  1130

  Mr. Speaker, I reserve the balance of my time.
  Mr. FLAKE. Mr. Speaker, I yield myself such time as I may consume.
   Mr. Speaker, I rise today in strong support of H.R. 2203, a measure 
to reauthorize the tied-aid authority of the Export-Import Bank. In the 
past, I have supported this measure, and I will do so again today. 
However, given the gravity of the current debate over the size and 
purpose of various government agencies, I have welcomed the opportunity 
to learn about the efficacy of the Export-Import Bank. Moreover, I wish 
to personally thank the distinguished Ex-Im president and chairman 
Kenneth Brody. Chairman Brody is leaving the Bank for other endeavors, 
and in doing so, the United States is losing one of its champions of 
increased exports.
  My fellow colleagues, I have been amazed at the intensity of the 
debate on whether or not we should fund, or even have the Export-Import 
Bank. Both those who are in favor of the Bank, and those who vehemently 
oppose it have executed overwhelmingly comprehensive lobbying 
campaigns. The result is that we have a broad spectrum of opinions as 
to how much closing the Bank will save the American taxpayer, and it is 
no surprise that several Members of Congress have sometimes staked 
their positions on this aspect alone. I must note for the record, 
however, that savings is not the only issue, and to make it the only 
issue is shortsighted.
  Most of our competitors in the industrialized world use economic 
credit agencies to assist their exporters, and thus foreign governments 
seek to ensure the viability of their industries in an ever increasing 
atmosphere of competitiveness. Beyond this one aspect there are many 
salient issues, and probably more important to our constituents, is the 
fact that exporting to emerging markets is probably the only area where 
American business can expect to grow in the future. To the extent that 
tied-aid is just one tool that the Ex-Im Bank uses to further this 
projected growth, I urge my colleagues to support H.R. 2203.
  Tied aid is one of the strongest tools Ex-Im has when it attempts to 
deter foreign governments from offering concessional financing to 
borrowing countries. Tied aid represents perhaps the most overt and 
most distorting subsidy associated with export credit assistance. The 
Ex-Im Bank aptly describes this practice as the buying of export deals 
because perpetrating countries extend concessional funding packages in 
exchange for the purchase of its products. When U.S. companies face 
competition backed by tied aid, there is little doubt that they will 
lose bids without Ex-Im matching support.
  We would be remiss and should be embarrassed if we were to take 
several steps backward in not passing this bill, and thus cripple 
American export business. U.S. exporters are benefiting from Ex-Im's 
matching policy, because of the overall reductions in global tied aid. 
From the Ex-Im banks bottom line perspective, given our strong 
deterrent use of tied aid matching, U.S. exporters are in fact 
competing on a more level playing field, and yet have kept their gloves 
on in a competitive fistfight.
  In closing Mr. Speaker, I would like to thank Chairman Castle and his 
staff for their cooperation in finally moving this legislation to the 
floor, and regret that Congress as a whole does not have the 
relationship that we have established in this subcommittee. The public 
would be better served if we could extend our cooperation to other 
issues, and to other committees.
   Mr. Speaker, I reserve the balance of my time.
  Mr. CASTLE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I have no other speakers, so the gentleman from New York 
[Mr. Flake] may want to call on anyone else he may have, but I would 
like to say before we yield back, if we are going to do that, that Mr. 
Ken Brody will be leaving his position as president and chairman of the 
Export-Import Bank, and I have enjoyed working with him. I believe him 
to be an excellent public servant who understands his subject matter 
extremely well, eliminates politics from carrying out his 
responsibilities, and I think has served both the administration and 
this country exceptionally well, and we appreciate that.
  Mr. FLAKE. Mr. Speaker, I have no further speakers and I yield back 
the balance of my time.
  Mr. CASTLE. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Bunn of Oregon). The question is on the 
motion offered by the gentleman from Delaware [Mr. Castle] that the 
House suspend the rules and pass the bill, H.R. 2203, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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