[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[House]
[Pages H10314-H10316]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT S. 1026, EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 
                                  1997

  Mr. CASTLE submitted the following conference report and statement on 
the Senate bill (S. 1026) to reauthorize the Export-Import Bank of the 
United States.

                  Conference Report (H. Rept. 105-392)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     1026), to reauthorize the Export-Import Bank of the United 
     States, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Export-
     Import Bank Reauthorization Act of 1997''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Tied aid credit fund authority.
Sec. 4. Extension of authority to provide financing for the export of 
              nonlethal defense articles or services the primary end 
              use of which will be for civilian purposes.
Sec. 5. Clarification of procedures for denying credit based on the 
              national interest.
Sec. 6. Administrative Counsel.
Sec. 7. Advisory Committee for sub-Saharan Africa.
Sec. 8. Increase in labor representation on the Advisory Committee of 
              the Export-Import Bank.
Sec. 9. Outreach to companies.
Sec. 10. Clarification of the objectives of the Export-Import Bank.
Sec. 11. Including child labor as a criterion for denying credit based 
              on the national interest.
Sec. 12. Prohibition relating to Russian transfers of certain missiles 
              to the People's Republic of China.

     SEC. 2. EXTENSION OF AUTHORITY.

       (a) In General.--Section 7 of the Export-Import Bank Act of 
     1945 (12 U.S.C. 635f) is amended by striking ``until'' and 
     all that follows through the end period and inserting ``until 
     the close of business on September 30, 2001.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on September 30, 1997.

     SEC. 3. TIED AID CREDIT FUND AUTHORITY.

       (a) Expenditures From Fund.--Section 10(c)(2) of the 
     Export-Import Bank Act of 1945 (12 U.S.C. 635i-3(c)(2)) is 
     amended by striking ``through'' and all that follows through 
     ``1997''.
       (b) Authorization.--Section 10(e) of such Act (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 to 
     carry out the purposes of this section.''.

     SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE 
                   EXPORT OF NONLETHAL DEFENSE ARTICLES OR 
                   SERVICES THE PRIMARY END USE OF WHICH WILL BE 
                   FOR CIVILIAN PURPOSES.

       Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 
     Stat. 4376) is amended by striking ``1997'' and inserting 
     ``2001''.

     SEC. 5. CLARIFICATION OF PROCEDURES FOR DENYING CREDIT BASED 
                   ON THE NATIONAL INTEREST.

       Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635(b)(1)(B)) is amended--
       (1) in the last sentence, by inserting ``, after 
     consultation with the Committee on Banking and Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate,'' after 
     ``President''; and
       (2) by adding at the end the following: ``Each such 
     determination shall be delivered in writing to the President 
     of the Bank, shall state that the determination is made 
     pursuant to this section, and shall specify the applications 
     or categories of applications for credit which should be 
     denied by the Bank in furtherance of the national 
     interest.''.

     SEC. 6. ADMINISTRATIVE COUNSEL.

       Section 3(e) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635a(e)) is amended--
       (1) by inserting ``(1)'' after ``(e)''; and
       (2) by adding at the end the following:
       ``(2) The General Counsel of the Bank shall ensure that the 
     directors, officers, and employees of the Bank have available 
     appropriate legal counsel for advice on, and oversight of, 
     issues relating to personnel matters and other administrative 
     law matters by designating an attorney to serve as Assistant 
     General Counsel for Administration, whose duties, under the 
     supervision of the General Counsel, shall be concerned solely 
     or primarily with such issues.''.

     SEC. 7. ADVISORY COMMITTEE FOR SUB-SAHARAN AFRICA.

       (a) In General.--Section 2(b) of the Export-Import Bank Act 
     of 1945 (12 U.S.C. 635(b)) is amended by inserting after 
     paragraph (8) the following:
       ``(9)(A) The Board of Directors of the Bank shall take 
     prompt measures, consistent with the credit standards 
     otherwise required by law, to promote the expansion of the 
     Bank's financial commitments in sub-Saharan Africa under the 
     loan, guarantee, and insurance programs of the Bank.
       ``(B)(i) The Board of Directors shall establish and use an 
     advisory committee to advise the Board of Directors on the 
     development and implementation of policies and programs 
     designed to support the expansion described in subparagraph 
     (A).
       ``(ii) The advisory committee shall make recommendations to 
     the Board of Directors on how the Bank can facilitate greater 
     support by United States commercial banks for trade with sub-
     Saharan Africa.
       ``(iii) The advisory committee shall terminate 4 years 
     after the date of enactment of this subparagraph.''.
       (b) Reports to Congress.--Within 6 months after the date of 
     enactment of this Act, and annually for each of the 4 years 
     thereafter, the Board of Directors of the Export-Import Bank 
     of the United States shall submit to Congress a report on the 
     steps that the Board has taken to implement section 
     2(b)(9)(B) of the Export-Import Bank Act of 1945 and any 
     recommendations of the advisory committee established 
     pursuant to such section.

     SEC. 8. INCREASE IN LABOR REPRESENTATION ON THE ADVISORY 
                   COMMITTEE OF THE EXPORT-IMPORT BANK.

       Section 3(d)(2) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635a(d)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) Not less than 2 members appointed to the Advisory 
     Committee shall be representative of the labor community, 
     except that no 2 representatives of the labor community shall 
     be selected from the same labor union.''.

     SEC. 9. OUTREACH TO COMPANIES.

       Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635(b)(1)) is amended by adding at the end the 
     following:
       ``(I) The President of the Bank shall undertake efforts to 
     enhance the Bank's capacity to provide information about the 
     Bank's programs to small and rural companies which have not 
     previously participated in the Bank's programs. Not later 
     than 1 year after the date of enactment of this subparagraph, 
     the President of the Bank shall submit to Congress a report 
     on the activities undertaken pursuant to this 
     subparagraph.''.

     SEC. 10. CLARIFICATION OF THE OBJECTIVES OF THE EXPORT-IMPORT 
                   BANK.

       Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635(b)(1)(A)) is amended in the first sentence by 
     striking ``real income'' and all that follows to the end 
     period and inserting: ``real income, a commitment to 
     reinvestment and job creation, and the increased development 
     of the productive resources of the United States''.

     SEC. 11. INCLUDING CHILD LABOR AS A CRITERION FOR DENYING 
                   CREDIT BASED ON THE NATIONAL INTEREST.

       Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635(b)(1)(B)), as amended by section 5, is amended 
     in the next to the last sentence by inserting ``(including 
     child labor)'' after ``human rights''.

     SEC. 12. PROHIBITION RELATING TO RUSSIAN TRANSFERS OF CERTAIN 
                   MISSILES TO THE PEOPLE'S REPUBLIC OF CHINA.

       Section 2(b) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635(b)) is amended by adding at the end the following:
       ``(12) Prohibition relating to russian transfers of certain 
     missile systems.--If the President of the United States 
     determines that the military or Government of the Russian 
     Federation has transferred or delivered to the People's 
     Republic of China an SS-N-22 missile system and that the 
     transfer or delivery represents a significant and imminent 
     threat to the security of the United States, the President of 
     the United States shall notify the Bank of the transfer or 
     delivery as soon as practicable. Upon receipt of the notice 
     and if so directed by the President of the United States, the 
     Board of Directors of the Bank shall not give approval to 
     guarantee, insure, extend credit, or participate in the 
     extension of credit in connection with the purchase of any 
     good or service by the military or Government of the Russian 
     Federation.''.
       And the House agree to the same.

     James A. Leach,
     Michael N. Castle,
     Douglas Bereuter,
     John J. LaFalce,
     Floyd H. Flake,
                                Managers on the Part of the House.

     Alfonse D'Amato,
     Rod Grams,
     Chuck Hagel,
     Paul Sarbanes,
     Carol Mosely-Braun,
                               Managers on the Part of the Senate.

[[Page H10315]]

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The Managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (S. 1026) to reauthorize 
     the Export-Import Bank of the United States, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report.


               section 1--Short Title: Table of Contents

     Present Law
       No provision.
     Senate bill
       The Senate bill (sec. 1) titles this Act the ``Export-
     Import Bank Reauthorization Act of 1997.''
     House amendment
       No provision.
     Conference agreement
       The conference agreement is the Senate provision.


                   section 2--extension of authority

     Present law
       The charter of the Export-Import Bank of the United States 
     (Eximbank), which expired on September 30, 1997, was extended 
     by continuing resolution through November 7, 1997.
     Senate bill
       The Senate bill (sec. 2) extends the charter of Eximbank 
     for four years through September 30, 2001.
     House amendment
       The House amendment (sec. 1) has an identical provision.
     Conference agreement
       The conference agreement extends the Eximbank's charter 
     through September 30, 2001.


               section 3--tied aid credit fund authority

     Present law
       Eximbank's authority to use the Tied Aid Credit Fund 
     pursuant to section 10 of the Export-Import Bank Act of 1945 
     (Eximbank Act) expired on September 30, 1997.
     Senate bill
       The Senate bill (sec. 3) extends Eximbank's authority to 
     use the Tied Aid Credit Fund for four years through September 
     30, 2001.
     House amendment
       The House amendment (sec. 2) has a similar provision 
     extending Eximbank's authority to use the Tied Aid Credit 
     Fund through September 30, 2001.
     Conference agreement
       The conference agreement extends Eximbank's authority to 
     use the Tied Aid Credit Fund through September 30, 2001.


 section 4--extension of authority to provide financing for the export 
of nonlethal defense articles or services the primary end use of which 
                     will be for civilian purposes

     Present law
       Eximbank's authority pursuant to section 2(b)(6)(I)(i) of 
     the Eximbank Act to provide finance for dual-use items (i.e 
     nonlethal defense articles or services the primary end use of 
     which will be for civilian purposes) expired on September 30, 
     1997.
     Senate bill
       The Senate bill (sec. 4) extends Eximbank's authority to 
     finance the export of dual-use items for four years through 
     September 30, 2001.
     House amendment
       The House amendment (sec. 3) has an identical provision.
     Conference agreement
       The conference agreement extends the Eximbank's authority 
     to finance the export of dual-use items through September 30, 
     2001.


section 5--clarification of procedures for denying credit based on the 
                           national interest

     Present law
       Section 2(b)(1)(B) of the Eximbank Act provides that the 
     President of the United States may instruct Eximbank to deny 
     an application for credit for non-financial or non-commercial 
     considerations only in cases where the President determines 
     that such action would clearly and importantly advance United 
     States policy in such areas as international terrorism, 
     nuclear proliferation, environmental protection, and human 
     rights.
     Senate bill
       No provision.
     House amendment
       The House bill (sec. 4) amends section 2(b)(1)(B) of the 
     Eximbank Act to provide that (1) the President, when 
     considering whether to deny Eximbank credit based on the 
     national interest, must consult with the Committee on Banking 
     and Financial Services of the House of Representatives and 
     Committee on Banking, Housing and Urban Affairs of the Senate 
     and (2) the determination to deny credit must be delivered to 
     the President of Eximbank in writing, state that the 
     determination is made pursuant to this section, and specify 
     the applications, or categories of applications for credit 
     which should be denied by the Bank in furtherance of the 
     national interest.
     Conference agreement
       The conference agreement is the House provision.


                   section 6--administrative counsel

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 5) amends section 3(e) of the 
     Eximbank Act to instruct the General Counsel of Eximbank to 
     designate an attorney to serve as Assistant General Counsel 
     for Administration whose sole or primary duty shall consist 
     of providing directors, officers and employees of the Bank 
     with appropriate legal counsel for advice on, and oversight 
     of, issues relating to ethics, conflicts of interest, 
     personnel matters, and other administrative law matters.
     Conference agreement
       The conference agreement is the House provision with an 
     amendment limiting the authority of the Assistant General 
     Counsel for Administration to personnel matters and other 
     administrative law matters.


          section 7--advisory committee for sub-saharan africa

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 6) amends section 2(b) of the 
     Eximbank Act to instruct the Eximbank Board of Directors to 
     (1) take prompt measures, consistent with the credit 
     standards otherwise required by law, to promote the expansion 
     of Eximbank's financial commitments to sub-Saharan Africa, 
     (2) establish and use an advisory committee, to exist for a 
     duration of 4 years, to advise the Board on implementation of 
     this expansion of credit and recommend to the Board on how 
     Eximbank can facilitate greater support by U.S. commercial 
     banks for trade with sub-Saharan Africa, and (3) report to 
     the Congress within 6 months after enactment of this Act, and 
     annually for 4 years thereafter, on steps the Board has taken 
     to implement this provision and any recommendations of the 
     advisory committee.
     Conference agreement
       The conference agreement is the House provision.


 section 8--increase in labor representation on the advisory committee 
                       of the export-import bank

     Present law
       Section 3(d)(2) of the Eximbank Act establishes an Advisory 
     Committee, which is to consist of 15 members broadly 
     representative of production, commerce, finance, 
     agriculture, labor, services, and State government, no 
     fewer than three of which shall be representative of the 
     small business community.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 7) amends section 3(d)(2) of the 
     Eximbank Act to require that no fewer than two of the members 
     of the Advisory Committee be representative of the labor 
     community.
     Conference agreement
       The conference agreement is the House amendment, with an 
     amendment requiring that no two representatives of the labor 
     community appointed to the Advisory Committee shall be 
     selected from the same labor union.


                    section 9--outreach to companies

     Present law
       Section 2(b)(1)(E)(i)(I) of the Eximbank Act instructs 
     Eximbank to encourage the participation of small business in 
     international commerce by developing a program which gives 
     fair consideration to making loans and providing guarantees 
     for the export of goods and services by small business.
     Senate bill
       The Senate bill (sec. 5) amends section 2(b)(1) of the 
     Eximbank Act to instruct the Chairman of the Bank to enhance 
     Eximbank's capacity to provide information about Eximbank's 
     programs to small and rural companies which have not 
     previously participated in Eximbank's programs, and to report 
     within 1 year on actions taken pursuant to this provision.
     House amendment
       The House amendment (sec. 8) amends section 2(b)(1) of the 
     Eximbank Act to instruct the Chairman of the Bank to design 
     and implement a program to provide information about Bank 
     programs to companies which have not yet participated in its 
     programs, and to report within 1 year on actions taken 
     pursuant to this provision.
     Conference agreement
       The conference agreement is the Senate provision.


 section 10--clarification of the objectives of the export-import bank

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 9) amends section 2(b)(1) of the 
     Eximbank Act to instruct Eximbank and its Board of Directors 
     to prescribe regulations and implement procedures to ensure 
     that, in selecting from among

[[Page H10316]]

     firms to which to provide financial assistance, Eximbank 
     gives preference to any firm that has shown a commitment to 
     reinvestment and job creation in the United States.
     Conference agreement
       The conference agreement amends section 2(b)(1)(A) of the 
     Eximbank Act to state that it is the policy of the United 
     States to foster the expansion of exports, thereby 
     contributing to a commitment to reinvestment and job creation 
     in the United States.


  section 11--including child labor as a criterion for denying credit 
                     based on the national interest

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 13) amends section 2 of the 
     Eximbank Act to prohibit Eximbank from providing assistance 
     in support of exports to entities that employ children in a 
     manner that would violate United States law regarding child 
     labor if the entity were located in the United States or has 
     not made a binding commitment to not employ children in such 
     manner.
     Conference agreement
       The conference agreement amends the ``Chafee Amendment'' in 
     section 2(b)(1)(B) of the Eximbank Act to identify child 
     labor as a human right that could serve as the basis for a 
     Presidential determination to deny applications for credit 
     for non-financial or non-commercial considerations.


   section 12--prohibition relating to russian transfers of certain 
               missiles to the people's republic of china

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 12) amends section 2(b) of the 
     Eximbank Act to require the President, if made aware that 
     Russia has transferred or delivered to the People's Republic 
     of China an SS-N-22 or SS-N-26 missile system, to notify 
     Eximbank which, upon receipt of such notification, shall 
     discontinue financing exports to Russia.
     Conference agreement
       The conference agreement amends section 2(b) of the 
     Eximbank Act to require the President, upon determining that 
     the Russian Government or military has transferred or 
     delivered to the People's Republic of China an SS-N-22 
     missile system and that the transfer or delivery represents a 
     significant and imminent threat to the security of the United 
     States, to notify Eximbank which, upon receipt of such 
     notification and if so directed by the President, shall 
     discontinue providing finance in connection with the purchase 
     of any good or service by the Russian Government or military.
       For purposes of this provision, the definition of ``Russian 
     Government or military'' shall include state-owned 
     enterprises.


preference in export-import bank assistance for exports to china to be 
           provided to companies adhering to code of conduct

     Present law
       No provision.
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 10) amends section 2 of the 
     Eximbank Act to instruct the Board of Directors, when 
     determining whether to provide financial support for exports 
     to the People's Republic of China, to give preference to 
     entities that the Board determines have established and are 
     adhering to a code of conduct set forth in the provision.
     Conference agreement
       The conference agreement is no provision.
       The Committee urges the Government of the United States, 
     consistent with the primary mission of export finance to 
     protect and expand jobs in the United States by supporting 
     exports that would not otherwise go forward, to promote 
     efforts among recipients to respect internationally 
     recognized human and worker rights. These would include a 
     recipient's good faith effort to provide a safe and healthy 
     workplace; avoid child and forced labor; avoid discrimination 
     based on race, gender, national origin, or religious beliefs; 
     respect freedom of association, the right to organize and 
     bargain collectively; pay not less than a country's minimum 
     wage required by local law, provide all legally mandated 
     benefits; obey all applicable environmental laws; comply with 
     international standards regarding illicit payments; respect 
     free expression; encourage good corporate citizenship and 
     make a positive contribution to the communities in which the 
     entity operates; and encourage similar behavior by partners 
     and suppliers.
       Especially regarding China, the Committee expects the 
     Government to carefully consider the business practices of 
     those entities receiving financing. The Committee believes 
     that promoting and recognizing good corporate citizenship 
     will ensure that a ``constructive engagement'' policy towards 
     China indeed promotes democracy and human rights.


                renaming of the u.s. export-import bank

     Present law
       The first section of the Eximbank Act names Eximbank the 
     ``Export-Import Bank of the United States.''
     Senate bill
       No provision.
     House amendment
       The House amendment (sec. 11) amends the first section of 
     the Eximbank Act to rename Eximbank to the ``United States 
     Export Bank.''
     Conference agreement
       The conference agreement is no provision.

     James A. Leach,
     Michael N. Castle,
     Douglas Bereuter,
     John J. LaFalce,
     Floyd H. Flake,
                                Managers on the Part of the House.

     Alfonse D'Amato,
     Rod Grams,
     Chuck Hagel,
     Paul Sarbanes,
     Carol Moseley-Braun,
     Managers on the Part of the Senate.

                          ____________________