[Congressional Record Volume 143, Number 68 (Wednesday, May 21, 1997)]
[Senate]
[Pages S4890-S4898]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON (for himself, Mr. Daschle, Mr. Wellstone, Mr. 
        Grams, Mr. Harkin and Mr. Grassley):
  S. 777. A bill to authorize the construction of the Lewis and Clark 
Rural Water System and to authorize assistance to the Lewis and Clark 
Rural Water System, Inc., a nonprofit corporation, for planning and 
construction of the water supply system, and for other purposes; to the 
Committee on Energy and Natural Resources.


           The Lewis and Clark Rural Water System Act of 1997

  Mr. JOHNSON. Mr. President, today, I am proud to be introducing 
legislation, along with my colleagues, the Minority Leader Senator 
Daschle of South Dakota, Senator Harkin and Senator Grassley of Iowa, 
and Senator Wellstone and Senator Grams of Minnesota, to authorize the 
Lewis and Clark Rural Water System. I introduced similar legislation 
last year as a Member of the House of Representatives during the 104th 
Congress. I look forward to again working closely with my colleagues 
for timely consideration of this important measure.
  The Lewis and Clark Rural Water System is made up of 22 rural water 
systems and communities in southeastern South Dakota, northwestern 
Iowa,

[[Page S4891]]

and southwestern Minnesota who have joined together in an effort to 
cooperatively address the dual problems facing the delivery of drinking 
water in this region--inadequate quantities of water and poor quality 
water.
  This region has seen substantial growth and development in recent 
years, and studies have shown that future water needs will be 
significantly greater than the current available supply. Most of the 
people who are served by 10 of the water utilities in the proposed 
Lewis and Clark project area currently enforce water restrictions on a 
seasonal basis. Almost half of the membership has water of such poor 
quality it does not meet present or proposed standards for drinking 
water. More than two-thirds rely on shallow aquifers as their primary 
source of drinking water, aquifers which are very vulnerable to 
contamination by surface activities.
  The Lewis and Clark system will be a supplemental supply of drinking 
water for its 22 members, acting as a treated, bulk delivery system. 
The distribution to deliver water to individual users will continue 
through the existing systems used by each member utility. This 
regionalization approach to solving these water supply and quality 
problems enables the Missouri River to provide a source of clean, safe 
drinking water to more than 180,000 individuals. A source of water 
which none of the members of Lewis and Clark could afford on their own.
  The proposed system would help to stabilize the regional rural 
economy by providing water to Sioux Falls, the hub city in the region, 
as well as numerous small communities and individual farms in South 
Dakota and portions of Iowa and Minnesota.
  The States of South Dakota, Iowa, and Minnesota have all authorized 
the project and local sponsors have demonstrated a financial commitment 
to this project through State grants, local water development district 
grants, and membership dues. The State of South Dakota has already 
contributed more than $400,000.
  Mr. President, I do not believe our needs get any more basic than 
good quality, reliable drinking water, and I appreciate the fact that 
Congress has shown support for efforts to improve drinking water 
supplies in South Dakota. I look forward to continue working with my 
colleagues to have that support extended to the Lewis and Clark Rural 
Water System.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 777

       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 ``Lewis and Clark Rural Water 
     System Act of 1997''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Environmental enhancement.--The term ``environmental 
     enhancement'' means the wetland and wildlife enhancement 
     activities that are carried out substantially in accordance 
     with the environmental enhancement component of the 
     feasibility study.
       (2) Environmental enhancement component.--The term 
     ``environmental enhancement component'' means the component 
     described in the report entitled ``Wetlands and Wildlife 
     Enhancement for the Lewis and Clark Rural Water System'', 
     dated April 1991, that is included in the feasibility study.
       (3) Feasibility study.--The term ``feasibility study'' 
     means the study entitled ``Feasibility Level Evaluation of a 
     Missouri River Regional Water Supply for South Dakota, Iowa 
     and Minnesota'', dated September 1993, that includes a water 
     conservation plan, environmental report, and environmental 
     enhancement component.
       (4) Member entity.--The term ``member entity'' means a 
     rural water system or municipality that signed a Letter of 
     Commitment to participate in the water supply system.
       (5) Project construction budget.--The term ``project 
     construction budget'' means the description of the total 
     amount of funds needed for the construction of the water 
     supply system, as contained in the feasibility study.
       (6) Pumping and incidental operational requirements.--The 
     term ``pumping and incidental operational requirements'' 
     means all power requirements that are incidental to the 
     operation of intake facilities, pumping stations, water 
     treatment facilities, reservoirs, and pipelines up to the 
     point of delivery of water by the water supply system to each 
     member entity that distributes water at retail to individual 
     users.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Water supply system.--The term ``water supply system'' 
     means the Lewis and Clark Rural Water System, Inc., a 
     nonprofit corporation established and operated substantially 
     in accordance with the feasibility study.

     SEC. 3. FEDERAL ASSISTANCE FOR THE WATER SUPPLY SYSTEM.

       (a) In General.--The Secretary shall make grants to the 
     water supply system for the planning and construction of the 
     water supply system.
       (b) Service Area.--The water supply system shall provide 
     for safe and adequate municipal, rural, and industrial water 
     supplies, environmental enhancement, mitigation of wetland 
     areas, and water conservation in--
       (1) Lake County, McCook County, Minnehaha County, Turner 
     County, Lincoln County, Clay County, and Union County, in 
     southeastern South Dakota;
       (2) Rock County and Nobles County, in southwestern 
     Minnesota; and
       (3) Lyon County, Sioux County, Osceola County, O'Brien 
     County, Dickinson County, and Clay County, in northwestern 
     Iowa.
       (c) Amount of Grants.--Grants made available under 
     subsection (a) to the water supply system shall not exceed 
     the amount of funds authorized under section 10.
       (d) Limitation on Availability of Construction Funds.--The 
     Secretary shall not obligate funds for the construction of 
     the water supply system until--
       (1) the requirements of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.) are met;
       (2) a final engineering report is prepared and submitted to 
     Congress not less than 90 days before the commencement of 
     construction of the water supply system; and
       (3) a water conservation program is developed and 
     implemented.

     SEC. 4. FEDERAL ASSISTANCE FOR THE ENVIRONMENTAL ENHANCEMENT 
                   COMPONENT.

       (a) Initial Development.--The Secretary shall make grants 
     and other funds available to the water supply system and 
     other private, State, and Federal entities, for the initial 
     development of the environmental enhancement component.
       (b) Nonreimbursement.--Funds provided under subsection (a) 
     shall be nonreimbursable and nonreturnable.

     SEC. 5. WATER CONSERVATION PROGRAM.

       (a) In General.--The water supply system shall establish a 
     water conservation program that ensures that users of water 
     from the water supply system use the best practicable 
     technology and management techniques to conserve water use.
       (b) Requirements.--The water conservation programs shall 
     include--
       (1) low consumption performance standards for all newly 
     installed plumbing fixtures;
       (2) leak detection and repair programs;
       (3) rate schedules that do not include declining block rate 
     schedules for municipal households and special water users 
     (as defined in the feasibility study);
       (4) public education programs and technical assistance to 
     member entities; and
       (5) coordinated operation among each rural water system, 
     and each water supply facility in existence on the date of 
     enactment of this Act, in the service area of the system.
       (c) Review and Revision.--The programs described in 
     subsection (b) shall contain provisions for periodic review 
     and revision, in cooperation with the Secretary.

     SEC. 6. MITIGATION OF FISH AND WILDLIFE LOSSES.

       Mitigation for fish and wildlife losses incurred as a 
     result of the construction and operation of the water supply 
     system shall be on an acre-for-acre basis, based on 
     ecological equivalency, concurrent with project construction, 
     as provided in the feasibility study.

     SEC. 7. USE OF PICK-SLOAN POWER.

       (a) In General.--From power designated for future 
     irrigation and drainage pumping for the Pick-Sloan Missouri 
     Basin program, the Western Area Power Administration shall 
     make available the capacity and energy required to meet the 
     pumping and incidental operational requirements of the water 
     supply system during the period beginning on May 1 and ending 
     on October 31 of each year.
       (b) Conditions.--The capacity and energy described in 
     subsection (a) shall be made available on the following 
     conditions:
       (1) The water supply system shall be operated on a not-for-
     profit basis.
       (2) The water supply system shall contract to purchase the 
     entire electric service requirements of the system, including 
     the capacity and energy made available under subsection (a), 
     from a qualified preference power supplier that itself 
     purchases power from the Western Area Power Administration.
       (3) The rate schedule applicable to the capacity and energy 
     made available under subsection (a) shall be the firm power 
     rate schedule of the Pick-Sloan Eastern Division of the 
     Western Area Power Administration in effect when the power is 
     delivered by the Administration.
       (4) It is agreed by contract among--
       (A) the Western Area Power Administration;
       (B) the power supplier with which the water supply system 
     contracts under paragraph (2);
       (C) the power supplier of the entity described in 
     subparagraph (B); and

[[Page S4892]]

       (D) the water supply system;
     that in the case of the capacity and energy made available 
     under subsection (a), the benefit of the rate schedule 
     described in paragraph (3) shall be passed through to the 
     water supply system, except that the power supplier of the 
     water supply system shall not be precluded from including, in 
     the charges of the supplier to the water system for the 
     electric service, the other usual and customary charges of 
     the supplier.

     SEC. 8. NO LIMITATION ON WATER PROJECTS IN STATES.

       This Act does not limit the authorization for water 
     projects in the States of South Dakota, Iowa, and Minnesota 
     under law in effect on or after the date of enactment of this 
     Act.

     SEC. 9. WATER RIGHTS.

       Nothing in this Act--
       (1) invalidates or preempts State water law or an 
     interstate compact governing water;
       (2) alters the rights of any State to any appropriated 
     share of the waters of any body of surface or ground water, 
     whether determined by past or future interstate compacts or 
     by past or future legislative or final judicial allocations;
       (3) preempts or modifies any Federal or State law, or 
     interstate compact, governing water quality or disposal; or
       (4) confers on any non-Federal entity the ability to 
     exercise any Federal right to the waters of any stream or to 
     any ground water resource.

     SEC. 10. COST SHARING.

       (a) Federal Cost Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary shall provide funds equal to 80 percent of--
       (A) the amount allocated in the total project construction 
     budget for planning and construction of the water supply 
     system under section 3;
       (B) such amounts as are necessary to defray increases in 
     the budget for planning and construction of the water supply 
     system under section 3; and
       (C) such amounts as are necessary to defray increases in 
     development costs reflected in appropriate engineering cost 
     indices after September 1, 1993.
       (2) Sioux falls.--The Secretary shall provide funds for the 
     city of Sioux Falls, South Dakota, in an amount equal to 50 
     percent of the incremental cost to the city of participation 
     in the project.
       (b) Non-Federal Cost Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     non-Federal share of the costs allocated to the water supply 
     system shall be 20 percent of the amounts described in 
     subsection (a)(1).
       (2) Sioux falls.--The non-Federal cost-share for the city 
     of Sioux Falls, South Dakota, shall be 50 percent of the 
     incremental cost to the city of participation in the project.

     SEC. 11. BUREAU OF RECLAMATION.

       (a) Authorization.--The Secretary may allow the Director of 
     the Bureau of Reclamation to provide project construction 
     oversight to the water supply system and environmental 
     enhancement component for the service area of the water 
     supply system described in section 3(b).
       (b) Project Oversight Administration.--The amount of funds 
     used by the Director of the Bureau of Reclamation for 
     planning and construction of the water supply system shall 
     not exceed the amount that is equal to 1 percent of the 
     amount provided in the total project construction budget for 
     the entire project construction period.

     SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $226,320,000, of which not less than $8,487,000 shall be 
     used for the initial development of the environmental 
     enhancement component under section 4, to remain available 
     until expended.

  Mr. WELLSTONE. Mr. President, today I join my colleagues from South 
Dakota, Iowa, and Minnesota in co-sponsoring Lewis and Clark Rural 
Water System Act of 1977, and I do so with great enthusiasm for what 
this project could mean to the people in southwestern Minnesota, as 
well as those in Iowa and South Dakota who have serious problems 
finding adequate drinking water supplies.
  Many of us never really have to think about where our water comes 
from, but for the people in Luverne and Worthington, Minnesota, it is a 
constantly nagging question, Helping provide for this sort of basic 
need is what I think government ought to be doing.
  In a project like Lewis and Clark, governments at all levels have to 
work together. Municipalities, states, and the federal government each 
will have important roles to play, and each will have to carry a 
significant burden. And that is as it should be--in tough situations 
like this, not only is there no free lunch, but there is also no free 
water.
  So today I am pleased to formally state my support for the Lewis and 
Clark project by cosponsoring its authorization legislation. The Lewis 
and Clark Rural Water System project is sorely needed to provide safe 
drinking water on a consistent basis for citizens in the tri-state 
region of Minnesota, South Dakota, and Iowa. For far too long 
communities in this region have faced great and sometimes overwhelming 
challenges in finding safe and reliable sources of water for their 
citizens. While many communities in our country have ample supplies of 
drinking water, twenty-two communities in this tri-state area are not 
so lucky. Shallow aquifers and high water tables have left many water 
systems in the region constantly searching for potable water. Even when 
these communities have managed to find sources of water, many times the 
water has been contaminated with unsafe levels of nitrates and 
bacteria, as well as high levels of naturally occurring iron and 
manganese.
  While the lack of water, reliable water sources affects the health of 
these citizens in the short-term, the economic vitality of these 
communities is adversely affected in the long-term. Rural communities 
cannot plan economic growth when they do not possess long-term sources 
of safe drinking water. Businesses are reluctant to locate in an area 
where such necessities are not guaranteed. Therefore, as a strong 
supporter of rural economic development. I believe that this project 
will benefit the economic welfare of citizens who live in this region.
  I recognize that some concerns still exist about the impacts of this 
project. I intend to work to improve the bill as it makes its way 
through the legislative process, and believe the concerns which some 
have raised regarding the environmental impacts of this project will be 
addressed as the project moves forward. Work on this important bill 
will likely be going on for some time, and I look forward to helping 
shape the final legislation and making the project a reality.
  Mr. GRAMS. Mr. President, I rise today to join Senators Daschle, 
Johnson, Grassley, Harkin, and Wellstone as a proud cosponsor of 
legislation authorizing the Lewis and Clark Rural Water System. This 
much-needed legislation will help provide a long-term, high-quality 
water supply from the Missouri River to over 180,000 individuals in 
portions of Minnesota, South Dakota, and Iowa.
  For too long, and to the detriment of community development, 
residents of this region have been deprived of a sustainable water 
resource. In light of Minnesota's reputation as the ``land of 10,000 
lakes,'' it might come as a surprise to hear my home state described as 
being desperately short on water supplies. The southwestern corner of 
the state, however, is geographically very different from the rest of 
Minnesota. Rock County, which would be served by the Lewis and Clark 
system, is the only county in Minnesota without a natural lake.
  Communities within the proposed water system are now served by 
shallow aquifers highly susceptible to drought, leading most of these 
communities to impose severe watering restrictions. The constant 
deterioration of these aquifers is evidenced through the detection of 
ever-increasing nitrate levels that threaten the safety of current 
drinking water. Moreover, increasing federal regulations have imposed 
expensive, unfunded mandates on communities seeking to deliver clean 
and healthy water to their residents.
  This situation has forced communities throughout the region to 
aggressively explore alternative water supplies. Since 1989, the 
community of Worthington, Minnesota has spent between $50,000 to 
$75,000 annually searching for another source of water, all without 
success. The nearby community of Luverne, Minnesota has experienced the 
same disappointing results despite its significant expenditures. It is 
little wonder struggling communities across this region have joined 
together to strongly support the Lewis and Clark proposal.
  Bill Weber, the distinguished mayor of Luverne, Minnesota stated: 
``It made sense to us to combine our financial assets in building one 
system that can provide an alternative supply of drinking water for 22 
systems. The only other alternative was for each of us to continue as 
we have in the past, exploring more costly alternatives that only 
helped one at a time and alternatives, which in the case of Luverne 
appear to be nonexistent.''
  Greg Degroot, President of Worthington Public Utilities, wrote that 
the system ``will provide our community

[[Page S4893]]

with an alternative source of water that will give us some protection 
in the event of the loss of our existing water source and will also 
provide the additional water that is necessary for our community to 
continue to prosper and grow.''
  Mr. President, under our legislation, local communities will come 
together with the affected states and the federal government to form a 
strong, financial partnership, thereby ensuring an adequate, safe water 
supply while reducing the costs to the American taxpayers. In fact, 
with our revised proposal, the city of Sioux Falls, South Dakota--by 
far the largest user of the proposed system--will pay 50% of the 
construction costs for its share of Lewis and Clark water.
  Mr. President, providing healthy water to our communities is one of 
the most basic functions of the government. It is not a partisan issue, 
and therefore I am proud to join with a bipartisan group of my 
colleagues and the Governors of Minnesota, South Dakota, and Iowa in 
supporting this bill. We believe our legislation to be the best, most 
cost-effective answer to a severe and growing problem.
  The time to enact this bipartisan legislation is now. As a member of 
the Energy and Natural Resources Committee, I look forward to working 
with the distinguished Chairman, Senator Murkowski; Senator Johnson, 
the primary sponsor of this legislation and a Committee member; the 
rest of our colleagues; and the Clinton Administration in providing 
much-needed relief to our communities. They deserve nothing less.
  Mr. HARKIN. Mr. President, I rise today in strong support of the 
Lewis and Clark Water System Act of 1997. This legislation will 
authorize the construction of Lewis and Clark, along with a federal 
commitment of assistance for construction. Lewis and Clark is designed 
to be a treated, bulk water delivery system for 22 communities and 
rural water systems located in northwest Iowa, southeast South Dakota, 
and southwest Minnesota. Within this tri-state area, over 200,000 
persons will be assured of clean and safe drinking water from Lewis and 
Clark.
  Lewis and Clark is necessary to address poor water quality sources, 
inadequate water supplies, population growth, and increasing federal 
regulations that the member water systems are trying to deal with. In 
many cases the drinking water currently delivered by Lewis and Clark's 
membership exceeds secondary drinking water standards for iron, 
manganese, sulfate, and total dissolved solids. Water of this quality 
is very difficult and expensive to treat. In Iowa, most of the involved 
drinking water systems are at, or near, their capacity, and have 
serious water quality problems. An engineering feasibility study 
completed by the Bureau of Reclamation in September 1993 concluded the 
project is technically feasible.
  However, this project will not be economically viable without federal 
assistance. Because many rural areas and small communities are involved 
with the project, the necessary financial resources do not exist to 
bring Lewis and Clark to completion. Through the Bureau of Reclamation 
study, each utility member determined that Lewis and Clark was the most 
feasible and least costly alternative for meeting future drinking water 
needs. It is estimated that this project will provide quality water at 
a reasonable cost, an estimated 75 cents per 1,000 gallons.
  Mr. President, this project represents a unique opportunity to bring 
safe, clean, and affordable drinking water to hundreds of thousands of 
persons in a tri-state area. It is not often Congress has the 
opportunity to assist in a project that has the joint cooperation of 
persons from three states, and twenty-two communities and local water 
systems. In an era when we see states and communities fighting for 
water resources, Lewis and Clark represents a grass-roots effort of 
concerned citizens, businesses, and government officials.
  Lastly, I would like to add that this is a project that clearly fits 
the characteristics of projects traditionally funded by the Bureau of 
Reclamation. Given its broad support, critical needs, and clear merits, 
I urge the passage of this important legislation.
      By Mr. LUGAR:
  S. 778. A bill to authorize a new trade and investment policy for 
sub-Saharan African; to the Committee on Finance.


                 The African Growth and Opportunity Act

 Mr. LUGAR. Mr. President, I introduce the African Growth and 
Opportunity Act. A similar bill has been introduced in the House of 
Representatives and is now cosponsored by nearly 50 Members. It enjoys 
the support of many in the House leadership. I applaud the hard work of 
those Members of the House who have toiled to draft proactive 
legislation that would, if enacted, help re-shape our relationship with 
countries in sub-Sahara Africa.
  The bill I am introducing contains a range of trade, investment and 
reform incentives for economic growth that require little or no new 
spending. It reflects much of the administration's ``Partnership for 
Economic Growth and Opportunity in Africa'' initiative which proposes 
greater U.S. attention and priority to Africa. This bill proposes 
important trade and investment initiatives that would be available to 
eligible African countries which pursue meaningful internal reforms--
both economic and political reform.
  The bill would seek to provide a range of trade preferences and 
concessions, including GSP and lower trade barriers, to eligible 
countries embarking on economic and political liberalization. It seeks 
to encourage increased private sector investment flows by engaging OPIC 
and other government guarantees to create private equity and 
infrastructure funds targeted on Africa. It proposes certain personnel 
changes in various government agencies to give greater attention to 
Africa and to facilitate U.S. trade and investment. It seeks the 
cooperation of international financial institutions to ease the heavy 
debt burden of the poorest countries in Africa. And, it seeks the 
cooperation of other developed countries to join us in granting trade 
concessions and other preferences to Africa.
  To achieve sustained economic growth and political stability in 
Africa, the private sector must be more fully engaged. They have the 
investment capital, they have the knowhow, and they have the will to 
take calculated risks abroad. The private sector, however, will be more 
interested in investment, trade and the technical assistance that 
accompany them, if countries make the hard decisions to liberalize 
their economies and open their political system to participation and 
good governance. That process is underway in Africa, but much more 
needs to be done.
  This bill intends to increase our commercial and official contacts 
and interactions in recognition of the enormous potential for economic 
growth and development in Africa. It reflects the vast diversity of 
people, cultures, economies, and potential among the forty-eight 
countries and the more than 600 million people. It provides incentives 
and rewards to the growing number of countries embarking on a host of 
economic and political reforms. These are reforms we should encourage 
and support. These changes are not only in the interests of African 
societies, they are in our interest as well. A stable and economically 
prosperous Africa will contribute to our commercial and security 
interests.
  The ``African Growth and Opportunity Act'', therefore, includes a 
range of incentives and policy tools that would begin the long-overdue 
process of linking U.S. ties with Africa on trade and investment, not 
solely on foreign assistance. We should be basing our relations with 
Africans as partners, not just as aid recipients. For too long, 
American policy towards Africa has concentrated on our foreign 
assistance programs which have resulted in little more than a series of 
bi-lateral donor-recipient relationships.
  While helpful in promoting economic and political development, and in 
alleviating humanitarian crises and other social ills, our assistance 
programs were never large enough to be effective in stimulating or 
sustaining real economic growth. They are still important and needed. 
But, bilateral assistance, even when coupled with assistance from other 
donor countries and from international banks and lending institutions, 
are insufficient by themselves to kick-start and sustain the economies 
of Africa. They have not been sufficient in eradicating contagious 
diseases, in eliminating chronic poverty, or in ending the cycle of 
under-development and recurring political turmoil.

[[Page S4894]]

  Mr. President, we have neglected Africa's economic growth potential 
for too many years. For too long, American interest in sub-Sahara 
Africa was largely a function of our strategic considerations and 
trade-offs during the Cold War period. Most Americans paid attention to 
Africa only when there was a natural or man-made calamity or disaster. 
Regrettably, this has led to distortion and mis-information about the 
real Africa. It has retarded interest in exploring opportunities in 
this rich and diverse continent.
  But, economic growth, political stability or the protection of human 
rights in Africa won't happen by themselves or by the actions of the 
U.S. The leadership in Africa must make it happen by their actions and 
decisions. We should encourage and respond to those countries and those 
leaders who are making the difficult decisions to implement economic 
and political reform.
  There is little doubt that those African countries which have 
embarked on the road to economic and political reform are beginning to 
reap the kind of benefits known in other regions of the world, such as 
East Asia. Several countries already enjoy multi-year economic growth 
in the five, six to ten percent range. Uganda, for example, had a 
growth rate of 10% in l995 and Ethiopia exceeded that level last year. 
More than 30 countries in sub-Sahara Africa have already initiated 
economic reform programs and some twenty-five countries have conducted 
open elections.

  Many countries have begun to liberalize their exchange rates and 
prices, privatize state-owned enterprises, reduce expensive state 
subsidies and cut back on impediments to trade and investment. These 
steps and others will help African economies grow.
  African trade barriers are more onerous than those in the faster 
growing economies in the developing world. Import tariffs are three and 
a half times higher than those in faster growing countries in the 
developing world. Along with non-tariff restrictions and assorted 
protectionist practices, these practices have hurt the competitiveness 
of Africa exports. They inflict trade losses that match or exceed the 
total levels of aid to Africa. As these barriers to trade and 
investment are eased and eliminated, they will open the way for 
economic growth and assist American entrepreneurs by opening their 
markets to our goods and services.
  It may interest members to know that U.S. trade with sub-Saharan 
Africa grew by more than 18% last year. For the second consecutive 
year, the growth in U.S. trade in sub-Sahara Africa outdistanced 
America's overall growth in world trade. No one who has sought to 
invest or trade in Africa will deny that doing so has been difficult, 
but few would deny that the many opportunities exist.
  U.S. trade with Africa amounts to only about one percent of total 
U.S. trade and U.S. investment there totals less than one percent of 
all U.S. direct investment overseas. This, despite the fact that 
roughly forty per cent of all America exports now go to developing 
countries where the greatest growth in U.S. trade and exports in recent 
years has taken place.
  Finally, Mr. President, let me conclude by saying that I am 
introducing this bill to stimulate interest and to encourage serious 
debate in the Senate on re-orienting U.S. policy towards Africa. 
Without question, we have a genuine interest in Africa that is only now 
being recognized. Enactment of this bill will help create an 
environment in which the private sector will become more fully engaged 
in the economic development and growth and political modernization of 
Africa. If that happens, it will be very much in the interest of the 
United States.
  I urge my colleagues in the Senate to take note of this bill, 
consider its merits, explore the growing potential for U.S. exports and 
investment and consider the prospects for revising and broadening our 
overall relationship with sub-Sahara Africa.
  If we do so, our country will be a major economic and security 
beneficiary.
  Mr. President, I ask unanimous consent that the Africa Growth and 
Opportunity Act be printed in full in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 778

       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 ``African Growth and 
     Opportunity Act''.

     SEC. 2. FINDINGS.

       The Congress finds that it is in the mutual economic 
     interest of the United States and sub-Saharan Africa to 
     promote stable and sustainable economic growth and 
     development in sub-Saharan Africa. To that end, the United 
     States seeks to facilitate the social and economic 
     development of the countries of sub-Saharan Africa in a 
     manner which strengthens and expands market-led economic 
     growth consistent with equitable and efficient development 
     and which reduces poverty and increases employment among the 
     poor. In particular, the United States seeks to assist sub-
     Saharan African countries to achieve economic self-reliance 
     by--
       (1) strengthening and expanding the private sector in sub-
     Saharan Africa, especially women-owned businesses;
       (2) encouraging increased trade and investment between the 
     United States and sub-Saharan Africa;
       (3) reducing tariff and nontariff barriers and other trade 
     obstacles;
       (4) expanding United States assistance to sub-Saharan 
     Africa's regional integration efforts;
       (5) negotiating free trade areas;
       (6) establishing a United States-Sub-Saharan Africa Trade 
     and Investment Partnership;
       (7) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (8) establishing a United States-Sub-Saharan Africa 
     Economic Cooperation Forum; and
       (9) continuing to support development assistance for those 
     countries in sub-Saharan Africa attempting to build civil 
     societies.

     SEC. 3. STATEMENT OF POLICY.

       The Congress supports economic self-reliance for sub-
     Saharan African countries, particularly those committed to--
       (1) economic and political reform;
       (2) market incentives and private sector growth;
       (3) the eradication of poverty; and
       (4) the importance of women to economic growth and 
     development.

     SEC. 4. ELIGIBILITY REQUIREMENTS.

       (a) In General.--A sub-Saharan African country shall be 
     eligible to participate in programs, projects, or activities, 
     or receive assistance or other benefits under this Act for a 
     fiscal year only if the President determines that the country 
     has established, or is making continual progress toward 
     establishing, a market-based economy, such as the 
     establishment and enforcement of appropriate policies 
     relating to--
       (1) promoting free movement of goods and services and 
     factors of production between the United States and sub-
     Saharan Africa;
       (2) promoting the expansion of the production base and the 
     transformation of commodities and nontraditional products for 
     exports through joint venture projects between African and 
     United States companies;
       (3) trade issues, such as protection of intellectual 
     property rights, improvements in standards, testing, labeling 
     and certification, and government procurement;
       (4) the protection of property rights, such as protection 
     against expropriation and a functioning and fair judicial 
     system;
       (5) tax issues, such as reducing high import and corporate 
     taxes, controlling government consumption, participation in 
     bilateral investment treaties, and the harmonization of such 
     treaties to avoid double taxation;
       (6) foreign investment issues, such as the provision of 
     national treatment for foreign investors and other measures 
     to attract foreign investors;
       (7) supporting the growth of regional markets within a free 
     trade area framework;
       (8) regulatory issues, such as eliminating government 
     corruption, minimizing government intervention in the market, 
     monitoring the fiscal and monetary policies of the 
     government, and supporting the growth of the private sector, 
     in particular by promoting the emergence of a new generation 
     of African entrepreneurs;
       (9) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs;
       (10) removing restrictions on investment; and
       (11) the reduction of poverty, such as the provision of 
     basic health and education for poor citizens, the expansion 
     of physical infrastructure in a manner designed to maximize 
     accessibility, increased access to market and credit 
     facilities for small farmers and producers, and improved 
     economic opportunities for women as entrepreneurs and 
     employees.
       (b) Additional Factors.--In determining whether a sub-
     Saharan African country is eligible under subsection (a), the 
     President shall take into account the following factors:
       (1) An expression by such country of its desire to be an 
     eligible country under subsection (a).
       (2) The extent to which such country has made substantial 
     progress toward--
       (A) reducing tariff levels;
       (B) binding its tariffs in the World Trade Organization and 
     assuming meaningful binding obligations in other sectors of 
     trade; and

[[Page S4895]]

       (C) eliminating nontariff barriers to trade.
       (3) Whether such country, if not already a member of the 
     World Trade Organization, is actively pursuing membership in 
     that Organization.
       (4) The extent to which such country is in material 
     compliance with its programs with and its obligation to the 
     International Monetary Fund and other international financial 
     institutions.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of those sub-
     Saharan African countries that have been determined to be 
     eligible under subsection (a) but are in need of making 
     continual progress in meeting one or more of the requirements 
     of such subsection.
       (2) Ineligibility of certain countries.--A sub-Saharan 
     African country described in paragraph (1) that has not made 
     continual progress in meeting the requirements with which it 
     is not in compliance shall be ineligible to participate in 
     programs, projects, or activities, or receive assistance or 
     other benefits, under this Act.

     SEC. 5. ADDITIONAL AUTHORITIES AND INCREASED FLEXIBILITY TO 
                   PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND 
                   FOR AFRICA.

       (a) Use of Sustainable Development Assistance To Support 
     Further Economic Growth.--It is the sense of the Congress 
     that sustained economic growth in sub-Saharan Africa depends 
     in large measure upon the development of a receptive 
     environment for trade and investment, and that to achieve 
     this objective the United States Agency for International 
     Development should continue to support programs which help to 
     create this environment. Investments in human resources, 
     development, and implementation of free market policies, 
     including policies to liberalize agricultural markets and 
     improve food security, and the support for the rule of law 
     and democratic governance should continue to be encouraged 
     and enhanced on a bilateral and regional basis.
       (b) Declarations of Policy.--The Congress makes the 
     following declarations:
       (1) The Development Fund for Africa established under 
     chapter 10 of part I of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2293 et seq.) has been an effective tool in 
     providing development assistance to sub-Saharan Africa since 
     1988.
       (2) The Development Fund for Africa will complement the 
     other provisions of this Act and lay a foundation for 
     increased trade and investment opportunities between the 
     United States and sub-Saharan Africa.
       (3) Assistance provided through the Development Fund for 
     Africa will continue to support programs and activities that 
     promote the long term economic development of sub-Saharan 
     Africa, such as programs and activities relating to the 
     following:
       (A) Strengthening primary and vocational education systems, 
     especially the acquisition of middle-level technical skills 
     for operating modern private businesses and the introduction 
     of college level business education, including the study of 
     international business, finance, and stock exchanges.
       (B) Strengthening health care systems.
       (C) Strengthening family planning service delivery systems.
       (D) Supporting democratization, good governance and civil 
     society and conflict resolution efforts.
       (E) Increasing food security by promoting the expansion of 
     agricultural and agriculture-based industrial production and 
     productivity and increasing real incomes for poor 
     individuals.
       (F) Promoting an enabling environment for private sector-
     led growth through sustained economic reform, privatization 
     programs, and market-led economic activities.
       (G) Promoting decentralization and local participation in 
     the development process, especially linking the rural 
     production sectors and the industrial and market centers 
     throughout Africa.
       (H) Increasing the technical and managerial capacity of 
     sub-Saharan African individuals to manage the economy of sub-
     Saharan Africa.
       (I) Ensuring sustainable economic growth through 
     environmental protection.
       (4) The African Development Foundation has a unique 
     congressional mandate to empower the poor to participate 
     fully in development and to increase opportunities for 
     gainful employment, poverty alleviation, and more equitable 
     income distribution in sub-Saharan Africa. The African 
     Development Foundation has worked successfully to enhance the 
     role of women as agents of change, strengthen the informal 
     sector with an emphasis on supporting micro and small sized 
     enterprises, indigenous technologies, and mobilizing local 
     financing. The African Development Foundation should develop 
     and implement strategies for promoting participation in the 
     socioeconomic development process of grassroots and informal 
     sector groups such as nongovernmental organizations, 
     cooperatives, artisans, and traders into the programs and 
     initiatives established under this Act.
       (c) Additional Authorities.--
       (1) In general.--Section 496(h) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2293(h)) is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following:
       ``(3) Democratization and conflict resolution 
     capabilities.--Assistance under this section may also include 
     program assistance--
       ``(A) to promote democratization, good governance, and 
     strong civil societies in sub-Saharan Africa; and
       ``(B) to strengthen conflict resolution capabilities of 
     governmental, intergovernmental, and nongovernmental entities 
     in sub-Saharan 
     Africa.''.
       (2) Conforming amendment.--Section 496(h)(4) of such Act, 
     as amended by paragraph (1), is further amended by striking 
     ``paragraphs (1) and (2)'' in the first sentence and 
     inserting ``paragraphs (1), (2), and (3)''.
       (d) Waiver Authority.--Section 496 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2293) is amended by adding 
     at the end the following:
       ``(p) Waiver Authority.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     President may waive any provision of law that earmarks, for a 
     specified country, organization, or purpose, funds made 
     available to carry out this chapter if the President 
     determines that the waiver of such provision of law would 
     provide increased flexibility in carrying out this chapter.
       ``(2) Exceptions.--
       ``(A) Child survival activities.--The authority contained 
     in paragraph (1) may not be used to waive a provision of law 
     that earmarks funds made available to carry out this chapter 
     for the following purposes:
       ``(i) Immunization programs.
       ``(ii) Oral rehydration programs.
       ``(iii) Health and nutrition programs, and related 
     education programs, which address the needs of mothers and 
     children.
       ``(iv) Water and sanitation programs.
       ``(v) Assistance for displaced and orphaned children.
       ``(vi) Programs for the prevention, treatment, and control 
     of, and research on, tuberculosis, HIV/AIDS, polio, malaria, 
     and other diseases.
       ``(vii) Basic education programs for children.
       ``(viii) Contribution on a grant basis to the United 
     Nations Children's Fund (UNICEF) pursuant to section 301 of 
     this Act.
       ``(B) Requirement to supersede waiver authority.--The 
     provisions of this subsection shall not be superseded except 
     by a provision of law enacted after the date of the enactment 
     of the African Growth and Opportunity Act which specifically 
     repeals, modifies, or supersedes such provisions.''.

     SEC. 6. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC 
                   COOPERATION FORUM.

       (a) Declaration of Policy.--The President shall convene 
     annual high-level meetings between appropriate officials of 
     the United States Government and officials of the governments 
     of sub-Saharan African countries in order to foster close 
     economic ties between the United States and sub-Saharan 
     Africa.
       (b) Establishment.--Not later than 12 months after the date 
     of the enactment of this Act, the President, after consulting 
     with the governments concerned, shall establish a United 
     States-Sub-Saharan Africa Trade and Economic Cooperation 
     Forum (hereafter in this section referred to as the 
     ``Forum'').
       (c) Requirements.--In creating the Forum, the President 
     shall meet the following requirements:
       (1) The President shall direct the Secretary of Commerce, 
     the Secretary of the Treasury, the Secretary of State, and 
     the United States Trade Representative to host the first 
     annual meeting with the counterparts of such Secretaries from 
     the governments of sub-Saharan African countries eligible 
     under section 4, the Secretary General of the Organization of 
     African Unity, and government officials from other 
     appropriate countries in Africa, to discuss expanding trade 
     and investment relations between the United States and sub-
     Saharan Africa and the implementation of this Act.
       (2)(A) The President, in consultation with the Congress, 
     shall encourage United States nongovernmental organizations 
     to host annual meetings with nongovernmental organizations 
     from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (B) The President, in consultation with the Congress, shall 
     encourage United States representatives of the private sector 
     to host annual meetings with representatives of the private 
     sector from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (3) The President shall, to the extent practicable, meet 
     with the heads of governments of sub-Saharan African 
     countries eligible under section 4 not less than once every 
     two years for the purpose of discussing the issues described 
     in paragraph (1). The first such meeting should take place 
     not later than twelve months after the date of the enactment 
     of this Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 7. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

       (a) Declaration of Policy.--The Congress declares that a 
     United States-Sub-Saharan Africa Free Trade Area should be 
     established, or free trade agreements should be entered into, 
     in order to serve as the catalyst for increasing trade 
     between the United

[[Page S4896]]

     States and sub-Saharan Africa and increasing private sector 
     development in sub-Saharan Africa.
       (b) Plan Requirement.--
       (1) In general.--The President, taking into account the 
     provisions of the treaty establishing the African Economic 
     Community and the willingness of the governments of Sub-
     Saharan African countries to engage in negotiations to enter 
     into free trade agreements, shall develop a plan for the 
     purpose of entering into one or more trade agreements with 
     sub-Saharan African countries eligible under section 4 in 
     order to establish a United States-Sub-Saharan Africa Free 
     Trade Area (hereafter in this section referred to as the 
     ``Free Trade Area'').
       (2) Elements of plan.--The plan shall include the 
     following:
       (A) The specific objectives of the United States with 
     respect to the establishment of the Free Trade Area and a 
     suggested timetable for achieving those objectives.
       (B) The benefits to both the United States and sub-Saharan 
     Africa with respect to the Free Trade Area.
       (C) A mutually agreed-upon timetable for establishing the 
     Free Trade Area.
       (D) The implications for and the role of regional and sub-
     regional organizations in sub-Saharan Africa with respect to 
     the Free Trade Area.
       (E) Subject matter anticipated to be covered by the 
     agreement for establishing the Free Trade Area and United 
     States laws, programs, and policies, as well as the laws of 
     participating eligible African countries and existing 
     bilateral and multilateral and economic cooperation and trade 
     agreements, that may be affected by the agreement or 
     agreements.
       (F) Procedures to ensure the following:
       (i) Adequate consultation with the Congress and the private 
     sector during the negotiation of the agreement or agreements 
     for establishing the Free Trade Area.
       (ii) Consultation with the Congress regarding all matters 
     relating to implementation of the agreement or agreements.
       (iii) Approval by the Congress of the agreement or 
     agreements.
       (iv) Adequate consultations with the relevant African 
     governments and African regional and subregional 
     intergovernmental organizations during the negotiations of 
     the agreement or agreements.
       (c) Reporting Requirement.--Not later than 12 months after 
     the date of the enactment of this Act, the President shall 
     prepare and transmit to the Congress a report containing the 
     plan developed pursuant to subsection (b).

     SEC. 8. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.

       (a) Findings.--The Congress makes the following findings:
       (1) The lack of competitiveness of sub-Saharan Africa in 
     the global market, especially in the manufacturing sector, 
     make it a limited threat to market disruption and no threat 
     to United States jobs.
       (2) Annual textile and apparel exports to the United States 
     from sub-Saharan Africa represent less than 1 percent of all 
     textile and apparel exports to the United States, which 
     totaled $45,932,000,000 in 1996.
       (3) Sub-Saharan Africa has limited textile manufacturing 
     capacity. During 1998 and the succeeding 4 years, this 
     limited capacity to manufacture textiles and apparel is 
     projected to grow at a modest rate. Given this limited 
     capacity to export textiles and apparel, it will be very 
     difficult for these exports from sub-Saharan Africa, during 
     1998 and the succeeding 9 years, to exceed 3 percent annually 
     of total imports of textile and apparel to the United States. 
     If these exports from sub-Saharan Africa remain around 3 
     percent of total imports, they will not represent a threat to 
     United States workers, consumers, or manufacturers.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) it would be to the mutual benefit of the countries in 
     sub-Saharan Africa and the United States to ensure that the 
     commitments of the World Trade Organization and associated 
     agreements are faithfully implemented in each of the member 
     countries, so as to lay the groundwork for sustained growth 
     in textile and apparel exports and trade under agreed rules 
     and disciplines;
       (2) reform of trade policies in sub-Saharan Africa with the 
     objective of removing structural impediments to trade, 
     consistent with obligations under the World Trade 
     Organization, can assist the countries of the region in 
     achieving greater and greater diversification of textile and 
     apparel export commodities and products and export markets; 
     and
       (3) the President should support textile and apparel trade 
     reform in sub-Saharan Africa by, among other measures, 
     providing technical assistance, sharing of information to 
     expand basic knowledge of how to trade with the United 
     States, and encouraging business-to-business contacts with 
     the region.
       (c) Treatment of Quotas.--
       (1) Kenya and mauritius.--Pursuant to the Agreement on 
     Textiles and Clothing, the United States shall eliminate the 
     existing quotas on textile and apparel exports to the United 
     States--
       (A) from Kenya within 30 days after that country adopts a 
     cost-effective and efficient visa system to guard against 
     unlawful transshipment of textile and apparel goods; and
       (B) from Mauritius within 30 days after that country adopts 
     such a visa system.
     The Customs Service shall provide the necessary assistance to 
     Kenya and Mauritius in the development and implementation of 
     those visa systems. The Customs Service shall monitor and the 
     Commissioner of Customs shall submit to the Congress, not 
     later than March 31 of each year, a report on the 
     effectiveness of those visa systems during the preceding 
     calendar year.
       (2) Other sub-saharan countries.--The President shall 
     continue the existing no quota policy for countries in sub-
     Saharan Africa. The President shall submit to the Congress, 
     not later than March 31 of each year, a report on the growth 
     in textiles and apparel exports to the United States from 
     countries in sub-Saharan Africa in order to protect United 
     States consumers, workers, and textile manufacturers from 
     economic injury on account of the no quota policy. The 
     President should ensure that any country in sub-Saharan 
     Africa that intends to export substantial textile and apparel 
     goods to the United States has in place a functioning and 
     efficient visa system to guard against unlawful transshipment 
     of textile and apparel goods.
       (d) Definition.--For purposes of this section, the term 
     ``Agreement on Textiles and Clothing'' means the Agreement on 
     Textiles and Clothing referred to in section 101(d)(4) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

     SEC. 9. GENERALIZED SYSTEM OF PREFERENCES.

       (a) Preferential Tariff Treatment for Certain Articles.--
     Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C. 
     2463(a)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Eligible countries in sub-saharan africa.--The 
     President may provide duty-free treatment for any article set 
     forth in paragraph (1) of subsection (b) that is the growth, 
     product, or manufacture of an eligible country in sub-Saharan 
     Africa that is a beneficiary developing country, if, after 
     receiving the advice of the International Trade Commission in 
     accordance with subsection (e), the President determines that 
     such article is not import-sensitive in the context of 
     imports from eligible countries in sub-Saharan Africa. This 
     subparagraph shall not affect the designation of eligible 
     articles under subparagraph (B).''.
       (b) Rules of Origin.--Section 503(a)(2) of the Trade Act of 
     1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end 
     the following:
       ``(C) Eligible countries in sub-saharan africa.--For 
     purposes of determining the percentage referred to in 
     subparagraph (A) in the case of an article of an eligible 
     country in sub-Saharan Africa that is a beneficiary 
     developing country--
       ``(i) if the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to that article, an amount not to exceed 15 percent 
     of the appraised value of the article at the time it is 
     entered that is attributed to such United States cost or 
     value may be applied toward determining the percentage 
     referred to in subparagraph (A); and
       ``(ii) the cost or value of the materials included with 
     respect to that article that are produced in any beneficiary 
     developing country that is an eligible country in sub-Saharan 
     Africa shall be applied in determining such percentage.''.
       (c) Waiver of Competitive Need Limitation.--Section 
     503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C. 
     2463(c)(2)(D)) is amended to read as follows:
       ``(D) Least-developed beneficiary developing countries and 
     eligible countries in sub-saharan africa.--Subparagraph (A) 
     shall not apply to any least-developed beneficiary developing 
     country or any eligible country in sub-Saharan Africa.''.
       (c) Extension of Program.--Section 505 of the Trade Act of 
     1974 (19 U.S.C. 2465) is amended to read as follows:

     ``SEC. 505. DATE OF TERMINATION.

       ``(a) Countries in Sub-Saharan Africa.--No duty-free 
     treatment provided under this title shall remain in effect 
     after May 31, 2007, with respect to beneficiary developing 
     countries that are eligible countries in sub-Saharan Africa.
       ``(b) Other Countries.--No duty-free treatment provided 
     under this title shall remain in effect after May 31, 1997, 
     with respect to beneficiary developing countries other than 
     those provided for in subsection (a).''.
       (d) Definition.--Section 507 of the Trade Act of 1974 (19 
     U.S.C. 2467) is amended by adding at the end the following:
       ``(6) Eligible country in sub-saharan africa.--The terms 
     `eligible country in sub-Saharan Africa' and `eligible 
     countries in sub-Saharan Africa' means a country or countries 
     that the President has determined to be eligible under 
     section 4 of the African Growth and Opportunity Act.''.

     SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) International Financial Institutions.--(1) It is the 
     sense of the Congress that international financial 
     institutions and improved application of programs such as 
     those of the International Development Association, the 
     African Development Bank, the African Development Fund, and 
     the Enhanced Structural Adjustment Facility of the 
     International Monetary Fund are vital to achieving the 
     purposes of this Act.
       (2) The Congress supports the efforts of the executive 
     branch to encourage international financial institutions to 
     develop enhanced mechanisms for providing financing for

[[Page S4897]]

     countries eligible under section 4, consistent with the 
     purposes of this Act.
       (b) Debt Reduction.--(1) It is the sense of the Congress 
     that the executive branch should extinguish concessional debt 
     owed to the United States by the poorest countries in sub-
     Saharan Africa that are heavily indebted and pursuing bold 
     growth-oriented policies, and that the executive branch 
     should seek comparable action by other creditors of such 
     countries.
       (2) The Congress supports the efforts of the executive 
     branch to secure agreement from international financial 
     institutions on maximum debt reduction for sub-Saharan Africa 
     as part of the multilateral initiative referred to as the 
     Heavily Indebted Poor Countries (HIPC) initiative.
       (c) Executive Branch Initiatives.--The Congress supports 
     and encourages the implementation of the following 
     initiatives of the executive branch:
       (1) American-african business partnership.--The Agency for 
     International Development devoting up to $1,000,000 annually 
     to help catalyze relationships between United States firms 
     and firms in sub-Saharan Africa through a variety of business 
     associations and networks.
       (2) Technical assistance to promote reforms.--The Agency 
     for International Development providing up to $5,000,000 
     annually in short-term technical assistance programs to help 
     the governments of sub-Saharan African countries to--
       (A) liberalize trade and promote exports;
       (B) bring their legal regimes into compliance with the 
     standards of the World Trade Organization in conjunction with 
     membership in that Organization; and
       (C) make financial and fiscal reforms, as well as the 
     United States Department of Agriculture providing support to 
     promote greater agribusiness linkages.
       (3) Agricultural market liberalization.--The Agency for 
     International Development devoting up to $15,000,000 annually 
     as part of the multi-year Africa Food Security Initiative to 
     help address such critical agricultural policy issues as 
     market liberalization, agricultural export development, and 
     agribusiness investment in processing and transporting 
     agricultural commodities.
       (4) Trade promotion.--The Trade Development Agency 
     increasing the number of reverse trade missions to growth-
     oriented countries in sub-Saharan Africa.
       (5) Trade in services.--Efforts by United States embassies 
     in the countries in sub-Saharan Africa to encourage their 
     host governments--
       (A) to participate in the ongoing negotiations on financial 
     services in the World Trade Organization;
       (B) to revise their existing schedules to the General 
     Agreement on Trade in Services of the World Trade 
     Organization in light of the successful conclusion of 
     negotiations on basic telecommunications services; and
       (C) to make further commitments in their schedules to the 
     General Agreement on Trade in Services in order to encourage 
     the removal of tariff and nontariff barriers and to foster 
     competition in the services sector in those countries.

     SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.

       (a) Initiation of Funds.--It is the sense of the Congress 
     that the Overseas Private Investment Corporation should, 
     within 12 months after the date of the enactment of this Act, 
     exercise the authorities it has to initiate 2 or more equity 
     funds in support of projects in the countries in sub-Saharan 
     Africa.
       (b) Structure and Types of Funds.--
       (1) Structure.--Each fund initiated under subsection (a) 
     should be structured as a partnership managed by professional 
     private sector fund managers and monitored on a continuing 
     basis by the Corporation.
       (2) Capitalization.--Each fund should be capitalized with a 
     combination of private equity capital, which is not 
     guaranteed by the Corporation, and debt for which the 
     Corporation provides guaranties.
       (3) Types of funds.--
       (A) Equity fund for sub-saharan Africa.--One of the funds 
     should be an equity fund, with assets of up to $150,000,000, 
     the primary purpose of which is to achieve long-term capital 
     appreciation through equity investments in support of 
     projects in countries in sub-Saharan Africa.
       (B) Infrastructure fund.--One or more of the funds, with 
     combined assets of up to $500,000,000, should be used in 
     support of infrastructure projects in countries of sub-
     Saharan Africa. The primary purpose of any such fund would be 
     to achieve long-term capital appreciation through investing 
     in financing for infrastructure projects in sub-Saharan 
     Africa, including for the expansion of businesses in sub-
     Saharan Africa, restructurings, management buyouts and 
     buyins, businesses with local ownership, and privatizations.
       (4) Emphasis.--The Corporation shall ensure that the funds 
     are used to provide support in particular to women 
     entrepreneurs and to innovative investments that expand 
     opportunities for women and maximize employment opportunities 
     for poor individuals.

     SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
                   IMPORT BANK INITIATIVES.

       (a) Overseas Private Investment Corporation.--
       (1) Board of directors to include member with private 
     sector experience in sub-saharan africa.--Section 233(b) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)) is 
     amended in the first paragraph by inserting after the fifth 
     sentence the following: ``At least one of the eight Directors 
     appointed under the fourth sentence shall have extensive 
     private sector experience in sub-Saharan Africa.''.
       (2) Advisory board.--
       (A) In general.--Section 233 of the Foreign Assistance Act 
     of 1961 is amended by adding at the end the following:
       ``(e) Advisory Board.--The Board shall take prompt measures 
     to increase the loan, guarantee, and insurance programs, and 
     financial commitments, of the Corporation in sub-Saharan 
     Africa, including through the establishment and use of an 
     advisory committee to assist the Board in developing and 
     implementing policies, programs, and financial instruments 
     designed to support the expansion of, and increase in, the 
     provision of loans, guarantees, and insurance with respect to 
     sub-Saharan Africa. In addition, the advisory board shall 
     make recommendations to the Board on how the Corporation can 
     facilitate greater support by the United States for trade and 
     investment with and in sub-Saharan Africa.''.
       (B) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the 
     Overseas Private Investment Corporation shall submit to the 
     Congress a report on the steps that the Board has taken to 
     implement section 233(e) of the Foreign Assistance Act of 
     1961 and any recommendations of the advisory board 
     established pursuant to such section.
       (b) Export-Import Bank.--
       (1) Board of directors to include member with private 
     sector experience in sub-saharan africa.--Section 3(c)(8)(B) 
     of the Export-Import Bank Act of 1945 (12 U.S.C. 
     635a(c)(8)(B)) is amended by inserting ``, and one such 
     member shall be selected from among persons who have 
     extensive private sector experience in sub-Saharan Africa'' 
     before the period.
       (2) Advisory board.--
       (A) In general.--Section 3 of such Act (12 U.S.C. 635a) is 
     amended by adding at the end the following:
       ``(f) The Board of Directors shall take prompt measures to 
     increase the loan, guarantee, and insurance programs, and 
     financial commitments, of the Bank in sub-Saharan Africa, 
     including through the establishment and use of an advisory 
     committee to assist the Board of Directors in developing and 
     implementing policies, programs, and financial instruments 
     designed to support the expansion of, and increase in, the 
     provision of loans, guarantees, and insurance with respect to 
     sub-Saharan Africa. In addition, the advisory board shall 
     make recommendations to the Board of Directors on how the 
     Bank can facilitate greater support by United States 
     commercial banks for trade and investment with and in sub-
     Saharan Africa.''.
       (B) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the Export-
     Import Bank shall submit to the Congress a report on the 
     steps that the Board has taken to implement section 3(f) of 
     the Export-Import Bank Act of 1945 and any recommendations of 
     the advisory board established pursuant to such section.

     SEC. 13. ESTABLISHMENT OF ASSISTANT UNITED STATES TRADE 
                   REPRESENTATIVE FOR SUB-SAHARAN AFRICA.

       (a) Establishment.--The President shall establish a 
     position of Assistant United States Trade Representative 
     within the Office of the United States Trade Representative 
     to focus on trade issues relating to sub-Saharan Africa.
       (b) Funding and Staff.--The President shall ensure that the 
     Assistant United States Trade Representative appointed 
     pursuant to paragraph (1) has adequate funding and staff to 
     carry out the duties described in paragraph (1).

     SEC. 14. REPORTING REQUIREMENT.

       The President shall submit to the Congress, not later than 
     1 year after the date of the enactment of this Act, and not 
     later than the end of each of the next 4 1-year periods 
     thereafter, a report on the implementation of this Act.

     SEC. 15. SUB-SAHARAN AFRICA DEFINED.

       For purposes of this Act, the terms ``sub-Saharan Africa'', 
     ``sub-Saharan African country'', ``country in sub-Saharan 
     Africa'', and ``countries in sub-Saharan Africa'' refer to 
     the following:
       Republic of Angola (Angola)
       Republic of Botswana (Botswana)
       Republic of Burundi (Burundi)
       Republic of Cape Verde (Cape Verde)
       Republic of Chad (Chad)
       Republic of the Congo (Congo)
       Republic of Djibouti (Djibouti)
       State of Eritrea (Eritrea)
       Gabonese Republic (Gabon)
       Republic of Ghana (Ghana)
       Republic of Guinea-Bissau (Guinea-Bissau)
       Kingdom of Lesotho (Lesotho)
       Republic of Madagascar (Madagascar)
       Republic of Mali (Mali)
       Republic of Mauritius (Mauritius)
       Republic of Namibia (Namibia)
       Federal Republic of Nigeria (Nigeria)
       Democratic Republic of Sao Tome and Principe (Sao Tome and 
     Principe)
       Republic of Sierra Leone (Sierra Leone)
       Somalia
       Kingdom of Swaziland (Swaziland)
       Republic of Togo (Togo)
       Republic of Zaire (Zaire)

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       Republic of Zimbabwe (Zimbabwe)
       Republic of Benin (Benin)
       Burkina Faso (Burkina)
       Republic of Cameroon (Cameroon)
       Central African Republic
       Federal Islamic Republic of the Comoros (Comoros)
       Republic of Cote d'Ivoire (Cote d'Ivoire)
       Republic of Equatorial Guinea (Equatorial Guinea)
       Ethiopia
       Republic of the Gambia (Gambia)
       Republic of Guinea (Guinea)
       Republic of Kenya (Kenya)
       Republic of Liberia (Liberia)
       Republic of Malawi (Malawi)
       Islamic Republic of Mauritania (Mauritania)
       Republic of Mozambique (Mozambique)
       Republic of Niger (Niger)
       Republic of Rwanda (Rwanda)
       Republic of Senegal (Senegal)
       Republic of Seychelles (Seychelles)
       Republic of South Africa (South Africa)
       Republic of Sudan (Sudan)
       United Republic of Tanzania (Tanzania)
       Republic of Uganda (Uganda)
       Republic of Zambia (Zambia)

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