[Congressional Record Volume 144, Number 25 (Wednesday, March 11, 1998)]
[House]
[Pages H1040-H1084]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AFRICAN GROWTH AND OPPORTUNITY ACT

  The Committee resumed its sitting.
  Mr. ROYCE. Mr. Chairman, I yield 3 minutes to the gentleman from 
Illinois (Mr. Manzullo).
  Mr. MANZULLO. Mr. Chairman, Africa is a continent on the move and it 
is time we recognized that fact. We have neglected the people of Africa 
and ceded many export opportunities to their former European colonial 
powers.
  This legislation will for the first time focus the attention of the 
U.S. Government on a comprehensive trade strategy towards Africa. This 
legislation reinforces the positive developments taking place in that 
continent. Since 1990, more than 25 African countries have held 
democratic elections and more than 30 countries have embarked on free-
market economic reforms.
  Let me give my colleagues a taste of what can happen. Last year I 
held a hearing before the Subcommittee on Small Business Exports, which 
I chair, on the subject of the Overseas Private Investment Corporation, 
OPIC. A wonderful lady born in Africa and now residing in 
Massachusetts, Monique Maddy, testified how her small 
telecommunications firm was able to contribute both to economic 
development in Africa and increased U.S. exports to Africa.
  She won a deal, thanks to a political risk insurance package from 
OPIC, to build wireless public telephones which operate on debit cards 
instead of coins for Tanzania. This contract resulted in the export of 
$4.5 million worth of goods and services from 8 supplier companies in 7 
States: Texas, New Jersey, Washington, Georgia, Missouri, and North 
Carolina. In addition, 60 jobs were created in Tanzania.
  Because the Africa Communications Group did so well with the Tanzania 
sale, Ms. Maddy subsequently won a larger sale to Ghana with OPIC's 
help. This will result in the export of approximately $65 million worth 
of goods and services from the United States and create 500 jobs in 
Ghana. Without OPIC, most likely these deals would have gone to our 
European competitors.
  My home State of Illinois is another example of the phenomenal growth 
of exports to Africa. South Africa alone is Illinois's 20th largest 
export destination, totaling $389 million for 1996. The leading exports 
to South Africa are industries where Illinois excells: chemical, earth-
moving equipment, agricultural machinery, and aviation parts.
  From the Chicago-land area, exports to South Africa grew 148 percent 
between 1993 and 1996, starting at $74 million and increasing to $184 
million. In Rockford, Illinois, exports to South Africa grew 29 
percent, jumping from $2 million in 1994 to $2.6 million in 1995, the 
latest date for which we have export statistics.
  South Africa is the locomotive that drives much of Sub-Saharan 
Africa, and it is critically important we help this big emerging market 
on the path of democratic and free-market reform.
  Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the distinguished 
gentleman from California (Mr. Berman).
  (Mr. BERMAN asked and was given permission to revise and extend his 
remarks.)

                              {time}  1245

  Mr. BERMAN. Mr. Chairman, I thank the gentleman for yielding me the 
time.
  Mr. Chairman, I join the gentleman in support of H.R. 1432, the 
African Growth and Opportunity Act. This bill will help sub-Saharan 
countries build economic self-sufficiency and reduce their isolation in 
an increasingly interdependent world. The bill supports U.S. aid 
programs that are vital in the near term, but focus on sustainable 
development as the only way to substantially boost living standards in 
some of the world's poorest countries. It promotes trade, foreign 
investment, debt relief, and private enterprise, including businesses 
run by women.
  At the same time, the bill requires that beneficiary countries have 
or must be moving towards market-based economies. It requires they be 
committed to accountable government, the eradication of poverty, 
observance of human rights: these criteria offer the best chance for 
prosperity and stability in the region.
  The debate today will go into great details on many of the 
provisions. There will be some amendments which make the bill even 
better, and others which will be designed to fundamentally gut the key 
provisions of this bill, but I urge support for the bill and opposition 
to those amendments, in the context of trying to help H.R. 1432.
  Mr. Chairman, opponents of H.R. 1432 say that the United States 
should not help Sub-Saharan Africa by dropping quotas and tariffs on 
textiles and apparel, even though these are the goods countries in the 
region can most readily produce. Opponents argue that reducing trade 
barriers will make U.S. imports of such goods soar, threatening U.S. 
textile and apparel manufacturers and workers. They vastly overstate 
the case.
  To address this concern, the Committee on Ways and Means asked the 
International Trade Commission to assess potential textile and apparel 
imports from Sub-Saharan Africa under the terms of the bill. The ITC 
estimated

[[Page H1041]]

that even with duty- and quota-free treatment, textile and apparel 
imports from the region will not exceed three percent of total U.S. 
imports of such goods over the next 10 years. Sub-Saharan African 
imports currently account for less than one percent of total U.S. 
textile and apparel imports. Such modest growth, while important to 
Africa, clearly would pose no threat to U.S. manufacturers or workers.
  The bill provides for a review of the no-tariff, no-quota policy by 
requiring the President to report annually to Congress on the growth of 
textile and apparel imports from Sub-Saharan Africa. Even if imports 
unexpectedly rise dramatically, we can revise the policy before U.S. 
textile interests suffer substantial harm.
  Opponents also warn that the no-tariff, no-quota policy will spark a 
massive increase in illegal transshipments of goods from Asia. While 
illegal transshipment is always a concern, they again overstate the 
case.
  The bill contains strong provisions to prevent illegal transshipment. 
Sub-Saharan African countries will enjoy duty- and quota-free treatment 
only after they demonstrate that they have effective visa systems in 
place to guard against transshipments and counterfeit documents. The 
bill directs the U.S. Customs Service to monitor and report annually to 
Congress on the operation of those systems.
  It also penalizes those who circumvent the visa systems. Exporters 
who illegaly transship goods will lose duty-free benefits for two 
years.
  H.R. 1432 is a welcome change in U.S. policy that views Sub-Saharan 
countries as potential partners and not simply aid recipients. Africa's 
economic progress ultimately will depend on the policies that states in 
the region adopt. This bill guides them in the right direction. I 
strongly support H.R. 1432, and I urge my colleagues to do the same.
  Mr. MENENDEZ. Mr. Chairman, I yield 2 minutes to the gentleman from 
Maryland (Mr. Cummings).
  Mr. CUMMINGS. Mr. Chairman, I rise in support of H.R. 1432, the 
African Growth and Opportunity Act. As our Nation enjoys a booming 
economy, lower unemployment and lower inflation, many countries in sub-
Saharan Africa cannot afford medicine to treat their own children or 
buy nourishing food to satisfy their hunger.
  Today, by voting for this bill, the United States Congress and 
America will give sub-Sahara Africa a chance to prosper. This bill is 
not perfect. However, I believe it is a positive start to increasing 
investment in sub-Sahara Africa.
  Mr. Chairman, when I visited the countries of Ghana and Zambia in 
December, I saw firsthand the existing economic crisis. Infrastructure 
is extremely limited, health care facilities cannot keep up with the 
cases of chronic illnesses. In Zambia, we have 3.5 million children 
with no free public education. In Zambia, nearly 650,000 children are 
orphaned because their parents have died from AIDS. It is because of 
increased commerce and economic opportunity that sub-Saharan countries 
can begin to address these concerns.
  In 1996, U.S. imports from the 48 countries in sub-Saharan Africa 
totaled $15.2 billion. However, U.S. trade with the Nation of Japan 
alone totaled just above $200 billion. We see the inequity and we see 
the devastation of the absence of economic opportunity.
  Mr. Chairman, I urge every Member of this Congress to support this 
legislation.
  Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Fox).
  Mr. FOX of Pennsylvania. I thank the gentleman for yielding me the 
time, Mr. Chairman.
  Mr. Chairman, I rise in support of the African Growth and Opportunity 
Act, H.R. 1432. This legislation embodies our philosophy that the 
United States, as the world's largest and most technologically advanced 
economy, can and should do more to contribute to Africa's economic 
development.
  This bill could provide a positive framework for the competitive U.S. 
private sector, in concert with the ingenuity of the sub-Sahara Africa 
private sector, to help stimulate growth in Africa while increasing 
economic opportunities and jobs here at home. It encourages closer 
economic cooperation with the region and supports debt reduction for 
the poorest countries in Africa. It recognizes that U.S. trade, aid, 
and investment are all important pillars of the U.S. post-Cold War 
policy with Africa.
  It will enhance market access for African goods and services and 
promote multilateral debt relief for the poorest African countries. The 
bill will increase U.S.-Africa economic cooperation, and will help pave 
the way for the President in his trip to those countries in the latter 
part of this month. Most importantly, Mr. Chairman, this bill will 
continue the role of the United States as the catalyst for democracy 
and the engineer of economic growth around the world.
  Mr. MENENDEZ. Mr. Chairman, I yield 5 minutes to the distinguished 
gentleman from New Jersey (Mr. Payne), a member of the subcommittee who 
has traveled quite extensively in Africa, and spent a lot of time and 
effort in his dedication to the continent and to bringing all of our 
countries together.
  Mr. PAYNE. Mr. Chairman, I rise in support of H.R. 1432, the African 
Growth and Opportunity Act. I join the rest of my colleagues who are 
original cosponsors of this bill. We have been talking about this issue 
for some time now. I am finally pleased that this initiative is 
happening. The Subcommittee on Africa, of which I am a member, proudly 
marked up this legislation last year.
  I would like to thank the gentleman from Illinois (Mr. Crane), the 
gentleman from New York (Mr. Rangel), the gentleman from Washington 
(Mr. McDermott) and the gentleman from Louisiana (Mr. Jefferson) of the 
Committee on Ways and Means, who worked so hard with their vision to 
bring this particular bill to the floor.
  I would also like to commend my chairman of the Subcommittee on 
Africa, the gentleman from California (Mr. Royce), and the ranking 
member, who we have heard from also, the gentleman from New Jersey (Mr. 
Menendez) for the time, effort, and energy they have spent in trying to 
perfect this bill. It is still not a perfect bill, but it would not be 
in the shape that it is in now had it not been for the work of the 
gentleman from California (Mr. Royce) and the gentleman from New Jersey 
(Mr. Menendez) and the other Members that I mentioned.
  This is a historic and exciting occasion. Today I stand before you to 
say that the Africa trade bill will improve the lives of many African-
Americans on the continent. Imagine, as we approach the new millennium, 
a new partnership has been forged, a partnership that is not based on 
dependency on aid. People want to earn their way. They want to earn 
their keep.
  This is an opportunity for people to show that it is trade, not aid. 
If we give a person a fish, they eat for a day. If we teach a person to 
fish, they eat for a lifetime. This bill will finally bring Africa into 
the new millennium.
  I must also applaud the Africa diplomatic corps for their constant 
and unwavering faith that they would one day be active participants in 
the global economy. They are very supportive of this bill.
  What would this bill do? It would enhance market access for African 
goods and services; it would promote multilateral debt relief for the 
poorest of the poor; it would open free markets which otherwise would 
be closed to Africa. It directs OPEC to create a $150 million equity 
fund and a $500 million infrastructure fund to begin this year. It will 
increase authority and flexibility to provide assistance under the 
Development Fund for Africa.
  This bill will also establish a U.S. economic forum to facilitate 
annual high-level discussions of bilateral and multilateral trade and 
investment. Also, for the first time in over 20 years, a U.S. President 
will travel to Africa, and President Clinton will be armed with this 
legislation to talk about his partnership for growth and opportunity in 
Africa. I commend the President for his trip, going to Africa.
  Let me just say that I become disturbed when people say there is no 
national interest in Africa. We had an interest during the Cold War 
where we propped up illegal governments, like the Mobutu regime and 
some of the activities in Angola and other places, Mozambique and 
around the continent.
  Finally, we are able to say, let us forget the Cold War. That time 
has past. Let us look to the sub-Sahara African countries, and let us 
have a bill that recognizes that U.S. trade, aid, and investment are 
all important policy goals.
  Mr. Chairman, a foreign trade policy that ignores some 32 Sub-Saharan 
African nations is a distorted policy. This bill recognizes that

[[Page H1042]]

U.S. trade, aid and investment are all important foreign policy goals. 
32 countries have joined the new World Trade Organization, and we are 
helping them to share its benefits and to meet its requirements.
  In conclusion, liberalization will not be beneficial without a 
transformation in the thoughts and attitudes toward Africa. It must no 
longer be thought of as a region devoid of hope, but a region which the 
hope of civil society, popular struggle can be fostered to bring Africa 
to the ``center.''
  I support this bill and urge my colleagues on both sides of the aisle 
to do the same.
  Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
  Mr. PAYNE. I yield to the gentleman from Illinois.
  Mr. JACKSON of Illinois. Mr. Chairman, I thank the gentleman for 
yielding.
  I would ask the gentleman, is he aware in the bill of any African 
countries losing foreign aid they are now receiving unless they adopt 
the economic reforms dictated in this bill?
  Mr. PAYNE. Mr. Chairman, I am glad the gentleman brought that 
question up. This bill is separate from aid. The Development Fund for 
Africa was an earmarked area that this year is funded for about $700 
billion, and $30 million has been allocated or recommended by the 
administration to go into the aid. Therefore, the answer is, no. This 
is a separate entity, and it will not take aid from any country that 
does not conform to the bill.
  Secondly, I might say that a country that does not comply with 
governance and human rights, with transparency and basic human rights, 
will not be invited to be in the rounds, just as NATO expansion has 
been done.
  Mr. JACKSON of Illinois. Mr. Chairman, if the gentleman will continue 
to yield, is the gentleman aware of any African countries being forced 
to cut corporate taxes, privatize, and shrink their government 
services, or grant expanded rights to foreign investors under the bill?
  Mr. PAYNE. To my knowledge, I know of none. If the gentleman knows of 
any information that I am not privy to, I would certainly appreciate 
it, but to my knowledge it does not negatively impact on what is going 
on in those countries. There will be IMF requirements which already are 
in in many countries. What we are talking about is a new trade and 
investment opportunity for the various countries.
  Mr. JACKSON of Illinois. I thank the gentleman.
  Mr. ROYCE. Mr. Chairman, I yield 2 minutes to my colleague, the 
gentleman from Ohio (Mr. Chabot), on the Subcommittee on Africa.
  Mr. CHABOT. Mr. Chairman, I thank the gentleman for yielding me the 
time.
  Mr. Chairman, I rise in strong support of H.R. 1342, the African 
Growth and Opportunity Act. As the gentleman from New York (Chairman 
Gilman) and the gentleman from California (Chairman Royce) have pointed 
out, this legislation creates a transition path from developmental 
assistance to economic self-reliance for those countries in sub-Saharan 
Africa committed to economic and political reform, market incentives, 
and private sector growth.
  Mr. Chairman, while we have seen much turmoil and tragedy in Africa 
in recent years, we have also witnessed a number of positive 
developments on the continent. Since 1990, for example, more than 25 
African countries have held democratic elections. More than 30 nations 
have taken steps to institute market-oriented economic reforms. Many of 
us who have worked regularly on African issues are hopeful and 
confident that those numbers will continue to increase.
  I have talked with a number of African leaders, having had the 
opportunity to travel to Africa recently on a CODEL headed by the 
distinguished gentleman from Arizona (Mr. Kolbe), and many of the 
leaders who would greatly like to move away from dependency on foreign 
assistance and move towards economic self-reliance. The adoption of the 
African Growth and Opportunity Act will help to move that process 
forward.
  On an editorial which appeared this morning in the Washington Times, 
after being generally supportive, they stated, ``The problems faced by 
Africa are not going to be solved by a single piece of U.S. 
legislation. But too often, our Africa policy has been an ad hoc 
response to crises. If Congress passes this bill, there is a chance to 
get the policy on a firm footing at last.'' I agree with the Washington 
Times editorial this morning.
  I want to thank particularly the gentleman from California (Mr. 
Royce), the distinguished chairman of the Subcommittee on Africa, and 
also the gentleman from New York (Mr. Gilman), the distinguished 
chairman of the Committee on International Relations itself, for 
crafting this legislation and bringing this bill forward. It is a 
balanced bill and it makes a lot of sense. I strongly encourage my 
colleagues to support this bill.
  Mr. MENENDEZ. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from New York (Mr. Rangel), the ranking Democrat on the 
committee and a strong proponent of the bill.
  Mr. RANGEL. Mr. Chairman, I have never felt more proud as an 
American, but more so in being a Member of this Congress during this 
historic time, where we have dealt with the problems in Europe, we have 
dealt with the problems of Asia and Central and South America, and now 
this beautiful, rich continent that tries so desperately hard to 
struggle out of poverty has now started moving towards a fair market 
economy, democracy, and all of the things that we said were necessary 
in order to be trading partners with the United States.
  Now that she has done those things, and we see the progress that has 
been made in the sub-Saharan countries, I think that we are just about 
to give her a chance to prove that she can compete with the best of the 
countries, given the opportunity.
  For those who fear transshipment, there have been laws put right into 
the bill to increase the penalty for those who are guilty, but the 
people who do not want transshipment are the African people, because 
they want their people to work and improve the quality of life.
  But look at it as Americans. Once we develop this market, once we 
give disposable income for people in Africa, and once they start 
rebuilding their economies and the infrastructure, who will be 
providing the technology, the services, and the jobs? With our help, we 
will be able to beat out the colonial powers and America, once again, 
will be first, and our friends will be our friends in Africa.

                              {time}  1300

  I hope that Members are able to support the bill, because I think, 
throughout the world, we will be able to see that we were not there as 
fast as we should have been in apartheid; but once we got there, 
America has demonstrated to the world, including our friends in Africa, 
that we will be fair, we will be equitable, and we will make certain 
that they will be able to play in this market as a free economy.
  Mr. MENENDEZ. Mr. Chairman, I yield 6 minutes and 30 seconds to the 
distinguished gentlewoman from Texas (Ms. Jackson-Lee), whom I traveled 
with to Africa.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman from 
New Jersey for yielding me this time.
  I thank the gentleman from Illinois (Mr. Crane) and the gentleman 
from New York (Mr. Rangel). And the gentleman from California (Mr. 
Royce), we have spent some time together in Africa. I thank him for his 
leadership.
  This past Sunday, a group of us, Members of the United States 
Congress, traveled to Selma, Alabama, to reenact the march in 1965 of 
those brave souls who walked across the Edmond Pettus Bridge in Selma, 
Alabama.
  There was a great deal of trepidation and wonderment as to whether or 
not this approach was right. The reason they were doing it was because 
there were people in the United States who were disenfranchised from 
their rights under the Constitution of the United States of America.
  The gentleman from Georgia (Mr. Lewis), my colleague, was in the 
forefront. And as they proceeded over the bridge, they saw danger 
ahead. But rather than retreat, they went forward in order to create 
more opportunity for African Americans, people of color, women in the 
United States political process. They literally unshackled the very 
destructive laws by being the true result, or the true basis upon which 
the Voting Rights Act of 1965 was passed.

[[Page H1043]]

  Albeit some may argue and say we are not on the precipice of a Civil 
Rights Act today, I still take the words of Dr. Martin Luther King and 
say, If not now, then when; for, for the first time in the history of 
this Nation, I do believe we have elevated the discussion of the 
continent of Africa, sub-Saharan Africa, 48 countries, to a level of 
equality and equal partnership in business.
  So I would simply like to say that we are on a journey. Danger is 
ahead. There are many concerns that my good friends have. I am 
concerned about work safety conditions, the environment. I have, 
particularly in the last mission that I was honored to be on, the 
presidential mission headed by the gentleman from New York (Mr. 
Rangel), particularly focused and asked to lead out on the question of 
HIV infection in sub-Saharan Africa. I take that as a special 
commitment, the ravaging of HIV and AIDs. This bill does not 
necessarily address it, but it opens the doors of opportunity so that 
the pharmaceutical industry in this country can itself be involved in 
trade to provide the much-needed medicine for that devastating disease. 
That is important to me.
  My support of this bill does not in any way cause me to stand aside 
from my longstanding commitment to safety in the workplace, working 
conditions respective or responsive to the workers who will work there. 
Likewise, this bill emphasizes something very near and dear to me, and 
that is that the continent and sub-Saharan Africa must accord the human 
rights and dignity that is befitting of an international arena and 
trade.
  I am sorry to say that we have not done that for China in our most-
favored-nation debate we debate constantly. But here in this 
legislation there is a direct provision for making sure that the 
African countries who will participate adhere to the dignity and the 
responsibility of human rights. This is key.
  In addition, this bill has a provision for my friends from the 
agricultural belt. In the agricultural belt, $15 million is remaining 
that allows our agricultural expertise to interact with Africa to 
develop products and expertise and to open up that market of 800 
million citizens who want to be included.
  Lastly, let me say that this question of dumping is extremely 
important. It bothers me, coming through Africa and relabeling it. 
Diplomats and presidents alike, when spoken to directly, have said, we 
will enforce our customs laws. We will be the kind of watchdog that 
refuses to allow Africa and this trade bill to be abused. Can we not 
give them respect as heads of state? Would we not ask this of China 
when we vote year after year for most favored nation? Why should not 
the continent have the same dignity and respect?
  We did not enslave Africans, those colonies, colonization; European 
colonizers did. Why can we not have the same opportunity now to come 
back and say, we do not have the baggage of Europe. We are ready to do 
trade and to develop economic opportunities. Do we not realize how 
important it is to make this continent, this relationship, to put 
ourselves in front of the colonizers of Europe?
  Lastly, let me say for inner-city America, for African Americans, for 
those who think their jobs will be taken, quite the contrary. Many of 
those in my district, the 18th congressional district, have said, I can 
work with this bill, small- and medium-size businesses, which are the 
backbone of America, creating jobs for people in the inner city because 
the trade barriers and tariffs are down for the little person to be 
able to be up.
  Mr. JACKSON of Illinois. Mr. Chairman, will the gentlewoman yield?
  Ms. JACKSON-LEE of Texas. I yield to the gentleman from Illinois.
  Mr. JACKSON of Illinois. Mr. Speaker, two questions for the 
gentlewoman.
  I am wondering, does the bill require American businesses to invest 
in the education and training of Africans and to hire and value African 
employees? And what knowledge, if any, does the gentlewoman have about 
multinational corporations here in America who stand to benefit from 
the bill, as to whether or not they have been supportive of affirmative 
action at home, so that African Americans can also be the beneficiaries 
of such a trade policy?
  Ms. JACKSON-LEE of Texas. Mr. Chairman, let me say, two very good 
questions. This bill gives us the opportunity with that kind of 
leverage and, yes, this bill opens the doors for small and minority 
businesses to be engaged. In fact, as we went through Africa with the 
African presidents, they pointedly said, we want a joint venture, and 
there is $150 million in this bill just for joint ventures.
  And as well on the multinationals, what kind of leverage will we have 
on the multinationals with 800 million black people in Africa saying, 
you will not do business with us if you do not support affirmative 
action. What kind of business will they get? None.
  Support this bill.
  Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Arizona (Mr. Kolbe).
  Mr. KOLBE. Mr. Chairman, I thank the gentleman for yielding. I want 
to congratulate the gentleman from California (Mr. Royce) and thank him 
for the leadership he has given the body, bringing to our attention the 
issues surrounding Africa, and for making it a high-profile issue for 
all of us.
  Mr. Chairman, I rise in strong support of this bipartisan 
legislation. It is heartening for me to see many of my colleagues who 
oppose granting fast track negotiating authority to the President stand 
here today and declare their support for expanding trade with sub-
Saharan Africa.
  As my friend, the gentleman from Ohio (Mr. Chabot) said, last August 
I had an opportunity to lead an eight-member bipartisan delegation to 
Africa to view firsthand many of the issues that surround our relations 
with this important region. During my short time there, I was very 
impressed with the spirit, the ingenuity and the initiative of the 
African people. My visit left me with little doubt that the Africa we 
see today is vastly different than the Africa of yesterday. It is truly 
remarkable that a continent once racked by the insidious evils of 
apartheid, civil strife, dependence and economic stagnation is today in 
the dawn of a new renaissance. The engineers of this renaissance are 
not the Americans, nor the Europeans, who colonized the continent, nor 
the Japanese or the Chinese or the Asians who followed them. The 
engineers of this renaissance are the Africans themselves.
  Today there is a new generation of leadership in sub-Saharan Africa, 
leadership dedicated not to the failed status development models of the 
past, but to market-based reforms and private sector growth.
  This new generation does not ask America for help, but for hope. They 
do not ask America for food, but for the tools to make their own crops 
grow. They do not ask America for schools or hospitals or dams, but for 
capital incentives to build their own. That is precisely what this bill 
would do.
  H.R. 1432 extends and expands the generalized system of preferences 
program for sub-Saharan Africa. It provides duty-free access to U.S. 
markets for eligible items, thereby creating incentives for private 
capital investment. The bill establishes for the first time a U.S.-
Africa Trade and Economic Cooperation Forum to facilitate annual high-
level meetings to discuss trade and economic issues.
  Mr. Chairman, through their actions, the African people have asked us 
to hear their call for hope, opportunity and self-sufficiency and 
sustainable economic growth. We should give them that. We should 
support H.R. 1432.
  Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the gentleman from 
Illinois (Mr. Jackson).
  Mr. JACKSON of Illinois. Mr. Chairman, this debate is in serious need 
of a historical perspective. The earliest trade policy of the United 
States, even before the Declaration of Independence, in 1619, involved 
African kings and potentates selling other common Africans to shipping 
companies owned by whites to be sold as exploited slaves and slave 
masters in the new territory.
  I have been to West Africa. I have seen the infrastructure of West 
African participation in the transatlantic slave trade. I have been to 
Jamestown and Charleston and seen the historic sites of events which 
precipitated the Civil War, the bloodiest war in American history. The 
agricultural, shipping and plantation companies and communities served 
primarily as the infrastructure for American complicity in this trade 
policy.
  The question before this Congress today of who benefited then and who

[[Page H1044]]

benefits now is really the gravamen of this debate. As we seek to 
establish a new trading paradigm between African nations and America, 
it is critically important that the new trading arrangement create a 
mutually beneficial partnership between black people in Africa and 
African Americans in the United States, which I believe will benefit 
all Americans.
  It is the only way that historical boats stuck at the bottom will 
become participants in a new trading relationship.
  Mr. MENENDEZ. Mr. Chairman, could the Chair advise what time remains 
on both sides?
  The CHAIRMAN. The gentleman from New Jersey (Mr. Menendez) has 5 
minutes remaining, and the gentleman from California (Mr. Royce) has 
6\1/2\ minutes remaining.
  Mr. ROYCE. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Campbell), who also serves on the Subcommittee on 
Africa.
  Mr. CAMPBELL. Mr. Chairman, I thank the gentleman for his leadership 
in bringing this bill to the floor. I am strongly in favor of this 
resolution. I emphasize the importance of allowing free market 
economics to provide the means of economic development and freedom for 
the people of Africa.
  One of the most striking things that I have studied over the last 
couple of years (and I want to particularly single out the good 
friendship and support of my colleague, the gentleman from New Jersey 
(Mr. Payne), who sits across from me today in doing so) is that the 
horrors that have occasionally surfaced, such as in Rwanda, such as in 
Burundi, are in countries that are internally focused, that do not have 
large links of trade with the world, that are not largely export-
oriented, that are at best self-sufficient in a good year. The key to 
diminishing the likelihood of such occurrences is to give Africa the 
opportunity to be looking to the world, and not just internally where 
the strife has arisen.
  I wish to emphasize a second point also--that those of our colleagues 
who mistrust American aid to African governments sometimes are right, 
and sometimes they are wrong, but they ought to be supportive of this 
bill in that it does not give money to a government. It rather empowers 
the individual to build his or her own economic future.
  Mr. Chairman, I strongly support this bill and urge all of my 
colleagues to do so.
  Mr. ROYCE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Indiana (Mr. Burton).
  Mr. BURTON of Indiana. Mr. Chairman, I thank the gentleman for 
yielding me the time.
  I am in favor of free trade around the world and free trade with 
Africa, I think, is extremely important. But there are provisions in 
this law that really concern me. For instance, only 35 percent of the 
product that is produced has to be completed or made in Africa. That 
means 65 percent of it can be transshipped from another country.
  Right now, Communist China, one of the worst violators of human 
rights in the world, is violating people's human rights with impunity. 
We have not done anything in this body, and many of our friends, other 
countries around the world, have done virtually nothing to put pressure 
on the Chinese Government to bring about changes in their human rights 
activities.

                              {time}  1315

  Just last week two people were arrested in New York from China who 
were selling body parts, if my colleagues can believe that. They sell 
retinas for $5,000 a pair; they will sell a kidney for $10,000 or 
$20,000. What they do is go to these concentration camps, these gulags, 
and they shoot these people and then take orders for their livers or 
kidneys and hearts and sell them in the United States and around the 
world.
  This country, China, is going to transship through Africa billions of 
dollars of products because of the provision in this law that allows 65 
percent of the product to be manufactured outside of Africa and then 
the remaining 35 percent can be completed in Africa and then sold to 
the United States or wherever. We are already buying billions of 
dollars in products from China today.
  I can remember when Wal-Mart said only buy American. They had ``Buy 
America'' advertisements all over the place. If we go into Wal-Mart 
today, probably 75 percent of the products we see are made in China by 
slave labor, by women and children, people whose human rights are being 
violated. And now we are going to expand their ability to garner a 
large part of the world market by saying that two-thirds of the product 
that is made in Africa can be made in China and transshipped through 
Africa to the United States and elsewhere.
  We need to be concerned about human rights throughout the world, and 
that provision in this law does concern me. We should have a different 
percentage in the bill.
  Mr. MENENDEZ. Mr. Chairman, I yield 1 minute to the gentleman from 
New Jersey (Mr. Payne).
  Mr. PAYNE. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  For many years we have tried to dictate policies for other countries 
and tell them what they ought to do. We have had a year-long meeting 
with the African diplomatic corps, and many of them are offended by the 
statements that we hear that we are going to transship through them. 
They say they have been dealing with other countries before.
  There is the ECOWAS community of 16 West African countries; we have 
SADC, made up of the 12 southern; we have the east and southern 
countries. And the African diplomatic corps indicate that they want 
this bill to come through. They think it is best for them.
  It is racism when we try to apply our views on other people, whether 
they are countries in Africa or whether they are minorities in this 
country. And if African diplomats and African presidents feel that this 
bill is at least a step up in the right direction, then who are we to 
tell them that it is wrong for them?
  Mr. MENENDEZ. Mr. Chairman, I yield myself the balance of my time, 
and would like to say to the gentleman from California, the chairman, 
that I have enjoyed very much working with him as the ranking Democrat 
on the subcommittee and thank him for all his courtesies during the 
process of this markup.
  Mr. Chairman, a stronger, stable, prosperous Africa will be a better 
partner for security and peace in the fight against drug trafficking, 
international crime, terrorism, the spread of disease and environmental 
degradation.
  The philosophy of this bill is simple: America stands ready to help 
those African countries that help themselves. The bill gives greater 
trade benefits to those countries that undertake sustained reform. 
Those efforts should include, for example, eliminating trade barriers, 
improving fiscal policies, promoting private sector development, 
fostering good governance, fighting corruption, and investment and 
social development. And countries engaging in gross violations of human 
rights would not be eligible.
  Increased trade and investment would be good for Africa and good for 
American workers. Africa constitutes a market of over 660 million 
people, potentially one of the largest markets in the world. More 
people than Japan and all of the Asian nations combined. If reform 
spurs growth, it will create new and bigger markets for U.S. exports.
  Our exports to Africa already are intensive in high-wage industries 
such as machinery, transportation equipment, electronics and services. 
Exports to Africa are already much greater, 27 percent greater than our 
exports to all the former Soviet Union combined.
  Mr. Chairman, this bill can also bolster nascent African democracies, 
which can decrease the need for U.S. military, humanitarian and 
disaster relief. Let us consider the example of Mozambique.
  After 16 years of civil war, democratic elections were held in 
Mozambique in 1994 and economic stability has been restored. Inflation 
has been reduced from a high of 70 percent to approximately 5 percent 
in just 3 years. Over 780 State-owned industries have been privatized, 
some purchased by U.S. companies. The economic recovery has helped 
provide jobs for demobilized fighters and made it possible for the 
government to boost investment in education and health, the building 
blocks for the future of that nation.

[[Page H1045]]

  Mozambique's dramatic turnaround underscores what investment and 
trade can do, how they can help economies, governments and people 
recover from the trauma of war and build successful, stable, democratic 
societies. Increased trade and investment complements continuing 
assistance, and we cannot afford to let Africa fail. We must seize upon 
the opportunity to help Africa help itself.
  We have policy interests that are clear and compelling. Let us not 
lose, let us not lose this historic opportunity to make a difference in 
the annals of history. Let us not lose this opportunity now at the turn 
of the century. It is time for a new paradigm as it relates to Africa, 
and we should be taking advantage of that opportunity by the adoption 
of this legislation.
  Mr. Chairman, I yield back the balance of my time.
  Mr. ROYCE. Mr. Chairman, I yield myself the balance of my time, and I 
want to commend the gentleman from New Jersey (Mr. Menendez), who I 
have enjoyed working with on shaping this bill and on other legislation 
that has come before our committee.
  Let me respond quickly to some of the discussions on the criteria in 
the bill. The criteria call for such participation requirements as 
protection of property rights, reduction of high import taxes, 
elimination of corruption, observance of the rule of law. These and 
other criteria are minimal reasonable standards for nations doing 
business with one another.
  The criteria in this bill represent international standards. They are 
not U.S.-imposed standards that are unworkable in the African context. 
Ugandan Ambassador Edith Ssempala has said they are necessary to 
encourage African nations to address issues they might choose to ignore 
otherwise.
  Human rights, the importation, the development of a court system, the 
rule of law, these are important policies. And, frankly, these are 
policies, these are criteria that have brought economic progress 
worldwide, and they are supported by the African ambassadors. They have 
embraced this bill.
  As chairman of the Africa subcommittee, I have had the chance to 
speak with many Africans, both at home and in their own countries, 
about this bill. I will be traveling with President Clinton and a few 
of my House colleagues in 2 weeks. For my colleagues, I cannot 
overestimate this bill's importance to Africa. It is so well received 
because Africans desperately want to be part of the world economy and 
they realize that a special economic relationship with the United 
States, not a perpetual aid relationship, is a big step in that 
direction.
  Now, this body should not pass this bill because of that alone. It 
should pass this bill because it helps Americans. We have heard of the 
growing American business interests in Africa, brought about by the 
reforms this bill encourages. We have heard about why a prosperous 
Africa matters to the United States.
  Africans can reach their limitless potential, or Africa's many social 
and environmental problems, problems that increasingly impact 
Americans, can overwhelm the continent. So the stakes are high, but I 
believe the future of many African countries is bright. This bill will 
help make it brighter, and I urge my colleagues to support this 
landmark piece of legislation.
  Mr. Chairman, I yield back the balance of my time.
  Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume, 
and I rise in support of H.R. 1432, the African Growth and Opportunity 
Act, which represents the culmination of 3 years of bipartisan work to 
develop a trade and investment policy toward the 48 countries in sub-
Saharan Africa. I am pleased that the bill will take this important 
step forward today.
  I believe that this legislation comes at a time of great hope and 
opportunity for sub-Saharan Africa. In recent years the region has 
undergone a quiet but persistent evolution toward democratic 
transformation as well as free market reforms. Indeed, 25 of the 48 
countries in sub-Saharan Africa have held democratic elections and 30 
have embarked on significant economic reforms, including tightening 
their fiscal discipline, the privatization of state enterprises, and 
the liberalization of trade and investment regimes.
  Due in no small part to these reform efforts, African economic growth 
is picking up, and U.S.-Africa trade has grown at nearly 20 percent a 
year for the past 2 years. Perhaps nothing describes the changes 
underway better than an African diplomat's statement at the Committee 
on Ways and Means markup of this bill that ``Africa is open for 
business.''
  In recognition of the progress sub-Saharan Africa has made, H.R. 1432 
moves our African policy away from its historical focus on aid towards 
a focus on trade. In particular, the bill promotes mutually beneficial 
trade relationships and partnerships with those countries in the region 
committed to economic and political reform.
  First, to facilitate trade and investment policy discussions, the 
bill creates a U.S.-Africa Trade and Economic Cooperation Forum similar 
to the successful APEC model in the Asia-Pacific region.
  Second, to provide enhanced export opportunities for nonimport-
sensitive products from Africa, the bill provides a 10-year extension 
of the Generalized System of Preferences program for sub-Saharan 
African countries committed to economic and political reform.
  Third, to promote trade liberalization in the region, the bill 
requires the President to formulate a plan to enter into free trade 
agreements with countries meeting the bill's economic criteria.
  And just as a side comment, I would like to reassure colleagues 
present, because this issue has arisen already, that the bill in no 
way, in no way cuts back or eliminates the aid programs that are 
currently in place.
  While this legislation offers many important benefits for sub-Saharan 
Africa, the bill also furthers important policy goals of the United 
States. Clearly, it is in our interest to support the democratic and 
free market trends in Africa, because a stronger, more stable and 
prosperous Africa will be a greater and better partner for security and 
peace in the region and a better ally in our mutual fight against 
narcotics trafficking, international crime, terrorism, the spread of 
disease and environmental degradation.
  At the same time, a strong and stable sub-Saharan Africa constitutes 
a combined market of nearly 700 million people, more than Japan and all 
of the ASEAN nations combined. Already U.S. exports to sub-Saharan 
Africa are 27 percent greater than our exports to all of the former 
Soviet Union, and yet our exports, which were valued at $6.2 billion in 
1997, have just begun to tap into the rapidly growing markets in the 
region. At present, our exports are intensive in high-wage industries, 
such as machinery, transportation equipment, electronics and services.

                              {time}  1330

  As sub-Saharan Africa benefits from its own decision to embrace free 
market principles, U.S. firms and workers will benefit in terms of 
higher levels of U.S. exports. I also believe that it is important that 
we hear the voices of Africans themselves in our debate today about 
what they believe H.R. 1432 means to their future.
  As the sponsor of this legislation, I believe that it will establish 
sub-Saharan Africa as a priority in U.S. trade policy and will 
encourage countries in the region to continue and perhaps redouble 
their economic and political reform efforts.
  In addition, H.R. 1432 is important to the advancement of the wide 
range of U.S. policy and security interests in the region and to codify 
many significant initiatives already underway by this administration. I 
urge its favorable consideration by the House today.
  Mr. Chairman, I include for the Record the following:

                          Embassy of the Republic of Djibouti,

                                     Washington, DC, July 8, 1997.
     Re passage of the African Growth and Opportunity Act.

     Hon. Phillip Crane,
     Member of Congress, Cannon House Office Building, Washington, 
         DC.
       Dear Congressman Crane: As outlined in our statement sent 
     to you on May 15, 1997, we would like to express our strong 
     support for the passage of H.R. 1432, African Growth and 
     Opportunity Act, this year. We urge Congress to pass this 
     legislation based on its merits.
       This legislation presents a unique opportunity to build a 
     new relationship between the United States and Africa. It 
     also serves to reinforce the very positive changes that are 
     taking place throughout the continent of Africa.

[[Page H1046]]

       Please accept the assurances of our highest consideration.
           Sincerely,
         H.E. Amos Bernard M. Midzi, Ambassador, Zimbabwe; H.E. 
           Gaetan R. Ouedraogo, Ambassador, Burkina Faso; H.E. 
           Willie Chokani, Ambassador, Malawi; H.E. Chitmansing 
           Jesseramsing, Ambassador, Mauritius; H.E. Azouz 
           Ennifar, Ambassador, Tunisia; H.E. Mary M. Kanya, 
           Ambassador, Swaziland; H.E. Archibald M. Mogwe, 
           Ambassador, Botswana; H.E. Paul Boundoukou-Latha, 
           Ambassador, Gabon; Mr. Nana Effah-Apenteng, Charge 
           D'Affaires, Ghana; Mr. John Mathew Mwendwa, Charge 
           D'Affaires, Tanzania; H.E. Berhane Gebre-Christos, 
           Ambassador, Ethiopia; H.E. Dieudonne Antoine Ganga, 
           Ambassador, Congo; Mr. Malamin K. Juwara, Charge 
           D'Affaires, Gambia; H.E. Eunice M. Bulane, Ambassador, 
           Lesotho; H.E. Ahmat Mahamat Saleh, Ambassador, Chad; 
           H.E. Benjamin Edgar Kipkorir, Ambassador, Kenya; H.E. 
           Edith Grace Ssempala, Ambassador, Uganda; H.E. Ramtane 
           Lamamra, Ambassador, Algeria.
         H.E. Mamadou Mansour Seck, Ambassador, Senegal; H.E. 
           Ahmed Ould Sid Ahmed, Ambassador, Mauritania; H.E. 
           Jerome Mendouga, Ambassador, Cameroon; Mr. Biclair 
           Andrianantoandro, Charge D'Affaires, Madagascar; Mr. 
           Mustapha Cherkaoui, Charge D'Affaires, Morocco; Rufino 
           Jose Mendes, Ambassador, Guinea Bissau; Mirghani 
           Mohamed Salih, Charge D'Affaires, Sudan; H.E. Kofi 
           Moise Koumoue, Ambassador, Cote D'Ivoire; H.E. Lucien 
           Tonoukouin, Ambassador, Benin; Mr. Manuel De Matos, 
           Charge D'Affaires, Cape Verde; H.E. Joseph Diatta, 
           Ambassador, Niger; H.E. Pastor M.O. Bile, Ambassador, 
           Equitorial Guinea; Mr. Fungbe Ralf Aderele, Minister, 
           Nigeria; H.E. Marcos G. Namashulua, Ambassador, 
           Mozambique; H.E. Veiccoh K. Nghiwete, Ambassador, 
           Namibia; Mr. George Rowe Nzala, Charge D'Affaires, 
           Zambia; H.E. Roble Olhaye, Ambassador, Djibouti.
                                           Embassy of the Republic


                                                  of Zimbabwe,

                                      Washington, DC, 15 May 1997.
     Re: statement by African Ambassadors to the United States on 
         the US economic agenda toward Africa

     Congressman Phillip Crane,
     Cannon House Office Building,
     Washington, DC.
       Dear Congressman Crane: In my capacity as Chairman of the 
     Economic Committee of the African Ambassadors Group, I have 
     the pleasure to forward for your attention, a statement from 
     the African Ambassadors in response to the Partnership for 
     Economic Growth and Opportunity in Africa document and the 
     Bill H.R. 1432. Africa Growth and Opportunity Act.
       Please accept the assurances of my highest consideration.
                                                  Amos B.M. Midzi,
                                                       Ambassador.

    Statement by African Ambassadors to the United States on the US 
                     Economic Agenda Toward Africa

       We, the African Ambassadors to the United States of 
     America, appreciate the continued efforts by the United 
     States Congress to promote trade and investment ties with 
     Africa, in the spirit of interdependence, as detailed in the 
     Bill H.R. 1432 ``African Growth and Opportunity Act'' 
     (Hereinafter called the Bill).
       We further appreciate the United States Administration's 
     continuing efforts and initiatives in this area as espoused 
     in the ``Partnership for Economic Growth and Opportunity in 
     Africa'' document (Hereinafter called the initiative) and the 
     President's second report to Congress entitled ``A 
     Comprehensive Trade and Development Policy For the Countries 
     of Africa.''
       As regards the need for eligibility requirements, we trust 
     that there will be bilateral consultations with all countries 
     concerned in order to achieve transparency.
       We are pleased to note that the Bill/Initiative 
     emphasize(s) the need to strengthen the various US agencies 
     which facilitate foreign investment enabling them to respond 
     more effectively to the investment needs of Sub-Saharan 
     African countries. We urge the United States to continue to 
     support bilateral and multilateral programs that enhance 
     capacity building, technical assistance and transfer of 
     technology to Africa.
       We welcome the recognition of the importance and crucial 
     role the US companies that are already doing business in Sub-
     Saharan Africa should play in the Inter-agency Credit Risk 
     Assessment System (ICRAS) to render the process of assessment 
     more transparent and objective.
       We equally welcome the intention of the Bill/Initiative to 
     support the development and growth of the private sector in 
     particular the Small and Medium scale Enterprises (SMEs), 
     especially women-owned businesses in Africa as a way of 
     achieving self-reliance. In this regard, we hope the Equity 
     Fund that is being proposed will be used for investment in 
     enterprises which add value to our raw materials.
       We welcome the proposal in the Bill/Initiative to establish 
     an annual United States-Sub-Saharan Africa Trade and Economic 
     Forum which will facilitate discussions, at Cabinet/
     Ministerial level, of economic issues.
       The proposal for summit meetings between the President of 
     the United States and African Heads of State and Government, 
     at least once every two years is commendable.
       The establishment of a Free Trade Area between the United 
     States and Sub-Saharan Africa, is a good long term objective 
     taking into account the differences in the levels of economic 
     development between the United States and Sub-Saharan Africa.
       We particularly welcome the provision in the Bill/
     Initiative to admit Sub-Saharan Africa's textiles and apparel 
     into the United States free of quotas and urge that duty free 
     access be incorporated in the new Bill. We also urge that 
     this provision be extended to other manufactured products. 
     That measure would have a significant and immediate positive 
     impact on the economies of Sub-Saharan African countries.
       The expansion and revamping of the GSP program is a welcome 
     development as are the proposed rules of origin. We however 
     urge that since GSP for Sub-Saharan Africa represents only 
     3.4 percent of total U.S. imports under the GSP program, it 
     be re-authorized for a ten year period to facilitate planning 
     by both importers and exporters.
       The indebtedness of African countries is a major obstacle 
     to their economic development. The leadership of the United 
     States in debt reduction with respect to both bilateral and 
     multilateral debt is therefore required, particularly in the 
     G-7 forum.
       As a complement to our national efforts, we welcome the 
     initiative that recognizes that education, health, the 
     eradication of poverty and the enhancement of human life are 
     necessary for sustainable economic development. We support 
     the United States initiatives to financially strengthen the 
     agencies dealing with these matters.
       As is well known, good infrastructure is a prerequisite for 
     investment and economic development. We therefore appreciate 
     the efforts being made to stimulate infrastructure 
     development in Sub-Saharan Africa by creating an 
     Infrastructure Fund.
       We welcome the proposal to establish a position of 
     Assistant United States Trade Representative to deal 
     exclusively with issues relating to Africa. We hope this 
     initiative will be replicated in all the agencies of the 
     Administration.
       We express our appreciation to the people, the 
     Administration and the Congress of the United States for 
     their long-standing economic and financial assistance to our 
     continent. We reiterate that economic assistance remains an 
     indispensable and crucial complement to the development 
     efforts of African countries to enable them to become more 
     viable economic partners.
       As always, we express our readiness to work with Congress, 
     the Administration and other interested parties to enhance 
     the position of Sub-Saharan Africa as a meaningful player in 
     the international marketplace in view of the globalization of 
     the world economy.

  Mr. Chairman, I reserve the balance of my time.
  Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume.
  I rise with great pride in support of this legislation. How many 
bills can come before this House supported by the President of the 
United States, the Speaker of the House, the minority leader of the 
House, and the support of the leadership in the Senate? It has been 
long overdue that we recognize the potential in trading with Africa.
  And it is not just helping a people that have been excised from 
economic development because of colonialism, but it is certainly in our 
best interest to develop those markets and to be able to see, as 
countries rebuild themselves, that these European countries not having 
the priority, but the friendship would be with those that were there 
when they needed them. That is why it amazes me how some of the so-
called friends of Africa have now found out what they think is best for 
Africans, when we have been working with their leadership here.
  African economists, African leaders have come and they have said that 
they want to be able to work in that same atmosphere as other countries 
in terms of encouraging investment and allowing the free marketplace to 
work for them, to support their ever-growing democracies. And yet, we 
have people that say, oh, no, that is not good enough for Africa.
  I do not know where they were with the Europeans, where they were 
with Asia, where they were in South America. But Africa does not need 
those kinds of friends now. What they need are people to support the 
beginning. And that is all this is, the beginning.
  There are no provisions in this bill that mandates that any African 
nation succumbs to it. They decide, based on the rules, whether they 
want to participate. All of the suggestions that are in the bill, the 
President of the United States does not have to have all of those 
requirements. This weak continent, and certainly the few countries that 
are the beneficiary, now has become a threat to the powerful industrial 
United States of America.

[[Page H1047]]

  We are now importing 1 percent, the International Trade Commission 
said that it could be 2 percent, of textiles. And now the industry is 
shaking at its foundation, and we are going to lose African-American 
jobs. Well, I represent the Harlem community, which is the African-
American capital of the world, and if we lose one job as a result of 
some African working in the sub-Saharan, I would like to see it. It 
just does not make any sense at all to believe that with these low-
skilled jobs, anyone in this continent, much less in this country, 
would be adversely affected.
  But the arrogance of saying that we want to trade with Africa, 
knowing that the low-skilled jobs are in textiles, and what would we 
say to them; we will trade with you if you only use American fabrics. 
That is to say that, we will manufacture the fabrics, we will send it 
to you, you can put a couple of stitchings on the label on it, and send 
it back to us.
  When the Africans say it does not make sense, when we supporters say 
it does not make sense, they say, well, we do it for Mexico. I would 
suggest to those people taking that position that in terms of 
transportation costs, it is a heck of a lot different bringing goods 
from Mexico to Texas than it is to take it from New York to Africa.
  In any event, we do have an opportunity for an historic vote here. I 
want to thank the gentleman from Illinois (Mr. Crane), because without 
his help, the input of the gentleman from Washington (Mr. McDermott), 
the gentleman from Louisiana (Mr. Jefferson), and the gentleman from 
New Jersey (Mr. Payne), and so many others on the Committee on Ways and 
Means, the leadership of both sides of the House. And we should not go 
to bed when this becomes law thinking that we have done it all, because 
it has been too long that Africa has been shut out from international 
trade. But one thing that we will know is that we were a part of the 
beginning.
  And just as many of my colleagues remember the conditions that 
existed in Korea 10 years ago, for those who would be around to be able 
to hopefully see an Africa that is thriving in economy, thriving in 
democracy, and competing with the best of the world, that is what makes 
us feel so good to be a part of the Congress and to be able to say we 
made a difference.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CRANE. Mr. Chairman, I yield 2\1/2\ minutes to our distinguished 
colleague, the gentleman from Pennsylvania (Mr. English), who has been 
conscientious and worked strenuously on behalf of the advancement of 
this bill.
  Mr. ENGLISH of Pennsylvania. Mr. Chairman, I thank the gentleman for 
that acknowledgment.
  I would like to associate myself with the gentleman from New York, as 
a friend of Africa, who supports this legislation that establishes a 
transitional path from development assistance to economic reliance for 
sub-Saharan African countries committed to economic and political 
reform.
  Sadly, the story of sub-Sahara Africa in the past few decades has too 
often been one of economic decline and stagnation, fostered by statist 
economic policies too often imbedded by the perverse design of well-
intentioned international aid programs.
  In recent years, this grim vista has given way to mild regional 
economic growth. This legislation would promote further growth by 
creating new incentives for economic reform and by bolstering free 
economies and free institutions.
  H.R. 1432 develops a partnership between the competitive U.S. private 
sector and the creative sub-Saharan African private sector to help 
stimulate growth in Africa, while increasing economic opportunities and 
jobs back home. This legislation establishes a cooperative forum 
between our countries to facilitate high-level discussions of bilateral 
and multilateral trade and investment policy initiatives.
  The bill extends GSP benefits to those countries eligible to 
participate in the bill for the next 10 years. On top of that, quotas 
on textile and apparel projects from Kenya and Mauritius are eliminated 
after these countries adopt a visa system to guard against 
transshipment.
  There is very strong language in this bill to protect the American 
economy against transshipment. These provisions will not, as has been 
argued on the floor of this House, lead to a surge of apparel and 
textile imports into the U.S. that damages American workers.
  In fact, given that these imports account for less than 1 percent of 
total imports of such goods, removing the tariffs and quotas would only 
increase these imports by less than another 1 percent. The import-
sensitive products, as determined by the ITC, would be excluded from 
duty-free treatment altogether.
  This legislation would create 200,000 new jobs in Africa, without 
significant job loss to the U.S. economy. It would reduce the 
dependence of this poverty-wracked region on direct U.S. financial 
assistance.
  I urge its passage.
  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from 
California (Mr. Matsui).
  Mr. MATSUI. Mr. Chairman, I would like to thank the gentleman from 
New York (Mr. Rangel), obviously the gentleman from Illinois (Mr. 
Crane), the gentleman from Washington (Mr. McDermott), the gentleman 
from Louisiana (Mr. Jefferson), and many others who have been really 
pushing this very historic piece of legislation.
  I really urge strong support of this African trade act. It will go a 
long ways in showing our relationship and our involvement with the 
African nations. What we really have here are 48 nations in the lower 
sub-Saharan area, 680 million people. The average per capita income of 
all the 48 nations is $500 per individual.
  Anybody in this country who thinks that we cannot compete with these 
48 nations who think that, with their $500 per capita income, with our 
education levels, with our universities, with our research and 
development, with our infrastructure, I just cannot believe that anyone 
would think that those 48 nations are a threat to us. They are not a 
threat to us in textiles. They are not a threat to us in any way.
  What we would be doing with these nations, by joining them in an 
African trade agreement, is to bring these 48 nations into the 
cooperative trading worlds of the nations that we have with us.
  Essentially, what we are talking about is providing a democratic 
foundation for these countries. Right now, of the 48, 30 of them are 
democracies. In addition, as you know, another 30 or so are market-
oriented countries.
  What we want to do is establish a relationship that will go well into 
the 21st Century, because this continent, this region will be one of 
the great regions over the next 20, 30, and 50 years.
  That is why this legislation, it is a small start, but it is so very 
important in terms of the free world and in terms of working together 
in a cooperative fashion.
  Mr. CRANE. Mr. Chairman, I yield 2 minutes to my distinguished 
colleague, the gentleman from North Carolina (Mr. Coble), who 
unfortunately is on the wrong side of this issue, to represent his 
point of view.
  (Mr. COBLE asked and was given permission to revise and extend his 
remarks.)
  Mr. COBLE. Mr. Chairman, I thank the gentleman from Illinois for 
yielding me this time.
  Mr. Chairman, I do not come to the floor wrapped in the cloak of 
protectionism today. Many people vote on trade issues very rigidly and 
very inflexibly. I try to examine each trade issue separately as to how 
it affects our country.
  For example, if the gentleman from Illinois will remember, I voted 
for MFN for China, thanks in no small part for his having twisted my 
arm; and, finally, he did convert me on that. I voted for NAFTA. But 
this is a matter, Mr. Chairman, that I cannot support.
  This House just rejected fast track several weeks ago. As I interpret 
this bill before us, it would allow the President to negotiate a free 
trade agreement with Africa. What is this, fast track light? I think we 
are going down the wrong road.
  While attempting to help the people of sub-Saharan Africa, the 
proposal would do so at a cost of numerous jobs in the U.S. fiber, 
textile and, apparel industries, rich in my district, by the way, very 
prominent. Thirty-five thousand textile workers probably live in my 
district. Nearly 2 million Americans are employed by this industry.

[[Page H1048]]

 Approximately one-quarter of those are African-Americans.
  In reality, this legislation before us, it seems to me, would not 
help the people of sub-Saharan Africa; rather, the bill would benefit 
the countries of the Far East and the Indian subcontinent, nations that 
already have viable textile industries and stand ready to exploit the 
opportunities presented by this proposal.
  I believe we can do better. I urge my colleagues to vote against this 
bill.
  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Washington (Mr. McDermott), the person that initiated the concept of 
working with the gentleman from Illinois (Mr. Crane).
  (Mr. McDERMOTT asked and was given permission to revise and extend 
his remarks.)
  Mr. McDERMOTT. Mr. Chairman, we are seeing today the end of a process 
that began 4 years ago. When I came to the Congress, I had just been 
working for the State Department and traveled all over Africa. I had 
been in 21 of the countries of Africa. I knew what the conditions were 
there.
  When I saw the GATT legislation, I asked my staff, what does this do 
for Africa? They said nothing. We have no policy toward Africa. So we 
put an amendment in the GATT legislation in 1994 saying that the United 
States should have a policy toward Africa.
  That is really where this started. It would not have happened just 
with me. Without the gentleman from Illinois (Mr. Crane), who took the 
idea and embellished it, and the gentleman from New York (Mr. Rangel), 
and the gentleman from Louisiana (Mr. Jefferson), and the gentleman 
from New York (Mr. Houghton), and the gentleman from California (Mr. 
Royce), a whole group of people, including the Speaker, have played an 
important role in putting this policy together.
  I saw Africa in 1961 for the first time when everybody was excited 
about how it was going to go. Africa, Ghana where I was, and Korea were 
exactly in the same place. Thirty years later, the 11th largest economy 
in the world is Korea, and Ghana is right where it was then. That, to 
me, said it was American policy about what we were going to do for Asia 
that we could do for Africa. That is really what this bill does.
  Everyone says there is a free trade agreement in this. There is no 
free trade agreement. There is no free trade with Asia. We have no free 
trade agreement negotiated with Asia. We are working toward that. This 
bill sets us on a transitional path to work toward that with Africa. 
But it is not something that is going to happen within 1 year.

                              {time}  1345

  There are other things in this bill that people do not talk about. 
The United States Government, when they put their stamp of approval on 
something, all kinds of good things start to happen.
  For instance, we have the Eximbank. The Eximbank loans 99.8 percent 
of its money somewhere else in the world, two-tenths percent for 
Africa. This bill changes things like that. It changes our government 
toward Africa and says we want to be trading partners with you. It is a 
good bill.
  Mr. CRANE. Mr. Chairman, I yield 3 minutes to the distinguished the 
gentleman from Florida (Mr. Shaw), a member of the committee.
  Mr. SHAW. I thank the gentleman for yielding me this time.
  Mr. Chairman, I want to speak just briefly about what is happening in 
Africa. We have heard other speakers talk about the emerging 
democracies and free market systems that are coming around, but I think 
also it is important to realize that the colonial powers, the old 
colonial powers still exist. Even though it is not by law, it is custom 
on the continent of Africa.
  There are a lot of things going on in Africa that really demand an 
American presence. The natural resources are really unsurpassed in the 
world as the potential for oil and other minerals.
  Also, of course, the environment of Africa is something we have to be 
very concerned about. The clear-cutting that is going on in those 
forests is something that should concern us here in the United States 
not only because of the preservation of the environment in Africa, but 
the effect that that has upon our own environment. The hurricanes are 
formed just off the coast of Africa that affect the East Coast of the 
United States. If the clear-cutting of the forests is to continue, this 
is going to have a drastic effect on weather here in the United States.
  I saw firsthand in the Republic of the Congo some of the problems 
that they are having with the clear-cutting in that area and the use of 
the animals as camp meat, everything from the gorillas to the other 
types of animals that exist in that part of the world. Also, that the 
Asians are moving into the Africa, and they are doing the clear-
cutting; just as happened in Indonesia, it is now continuing on the 
continent of Africa.
  I think it is time for us to have the responsible presence of the 
United States and the United States businesspeople, who have the 
highest standards of any in the world, to have a continuing presence or 
a growing presence in Africa. Of course, we know from experience that, 
and the prior speaker spoke of this, all of the aid that we have thrown 
into that continent really has not done that much; but I think trade 
certainly will. We have seen this in other parts of the world. If we 
adopt a policy of trade, not aid, I think that we are going to see a 
lot of wonderful things happen on that continent.
  The future of the world is going to be shared very greatly by the 
continent of Africa, and I think it is extremely important that we have 
a United States presence on that continent.
  Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
  Mr. SHAW. I yield to the gentleman from Illinois.
  Mr. JACKSON of Illinois. I would like to ask the gentleman a 
question, and I hope he can give me an answer to it.
  The current language of H.R. 1432 suggests absolutely no relationship 
between the development of businesses in Africa and the participation 
of African-American entrepreneurs, negotiators, lawyers, accountants, 
brokers to facilitate that business.
  I am interested, on either side, of those who are proponents of the 
bill whether or not they can name just a company, one African-American 
shipping company that will be the beneficiary under this bill.
  The CHAIRMAN. The time of the gentleman from Florida (Mr. Shaw) has 
expired.
  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from 
Louisiana (Mr. Jefferson), a long-time friend of Africa, one of the 
greatest supporters of the bill.
  Mr. JEFFERSON. I thank the gentleman for yielding the time to me.
  Mr. Chairman, I want to tell Members about an exciting mission that 
we took to Africa on behalf of the President of the United States, a 
mission that was led by the gentleman from New York (Mr. Rangel) that 
involved some 42 individuals, some six or so Congresspeople, people who 
represented the business sector and others who represented the 
administration.
  What we found was an Africa that it was ready to deal with trading 
and investing with the United States in a true partnership, an Africa 
that had felt neglected over the years, that was cheered on by the 
policy we were discussing, that had had a great hand in redacting the 
policy.
  This is not a bill that has come out of nowhere. It has been 2\1/2\ 
years in the making, ever since we were dealing with GATT and found 
out, to our surprise and to the surprise of many on our committee, that 
we addressed every continent in the world with respect to our trading 
and investing relationship, but we did not address Africa.
  We thought it was important to turn the attention of the 
administration toward that. We got African nations involved in it. We 
are now seeing the benefit of their input into this bill. They are 
hugely behind it; they are ready to work with us, and Africa is ready.
  This is not an Africa that it was 15 years ago. This is an Africa 
under great new leadership that has turned toward market-oriented 
economies, that is trying very hard to budget its affairs 
appropriately, and that is ready to do business with the United States. 
It would be to our detriment if we do not take advantage of it now.
  This bill is not perfect, as no bill is perfect, but it does take a 
huge step in the right direction of putting us on the map of dealing 
with a continent that

[[Page H1049]]

has been neglected as a true and important trade and investment 
destination. It also does some important things here that will help the 
African nations manage their own investments in education and health 
much better than they have invested and managed them now.
  About a quarter of the African nations' budgets are taken up by debt. 
This bill purports to take care of debt relief.
  Another good part of the bill deals with an issue that the gentleman 
from Illinois (Mr. Jackson) raised a minute ago, that deals with equity 
investing in small business opportunities there that helps to put 
together chances for people to gain wealth in Africa. And also 
microenterprises. It addresses the issue of poor women in Africa, the 
most repressed population in the world.
  This is a great bill, it is mutually beneficial to our country and to 
Africa, and I hope this Congress will pass it.
  Mr. CRANE. Mr. Chairman, I yield 2 minutes to the distinguished 
gentleman from New York (Mr. Houghton).
  Mr. HOUGHTON. Mr. Chairman, I do not have any great words of wisdom 
on this that have not already been expressed. I just can talk from my 
own experience.
  On the negative side, there is always the worry that this will put 
some of our textile people out of business. There is always the worry 
of transshipment. There is always the worry that people who already 
have been hit very hard and have a minority of the share of our 
business in this country are going to be further hurt; and they can 
say, If you do this to textiles, why do you not do it to the plastics 
industry? Why do you not do it to some other industry? I understand 
that.
  But it just seems to me in terms of the magnitude of the economic 
impact and also the fact that, in effect, this will be so dispersed 
that there will not be this transshipment issue to quite the degree 
that people think. So that is a negative side, but I think there is an 
answer such as I have just tried to explain.
  The other side, which I think is even more important, is this: Many 
times Africans, ambassadors, delegations from countries, come into our 
offices and say, please invest in our country. What they are really 
doing is thinking of foreign aid, and we do not have very much foreign 
aid. I have been around for a long time. It has slowly decreased bit by 
bit by bit. But even if it were at the old-time levels, it would not do 
what those nations need to have done in order to jump-start their 
economies. This does a very, very important, subtle thing. What it does 
is, it creates the atmosphere for individual and private investment. 
That is a multiplication investment which really is going to have the 
most impact on those countries.
  Therefore, recognizing the potential issue on the other side, but 
being offset by other considerations, I am strongly in favor of this 
bill.
  Mr. RANGEL. Mr. Chairman, I yield such time as he may consume to the 
gentleman from North Carolina (Mr. Hefner).
  (Mr. HEFNER asked and was given permission to revise and extend his 
remarks.)
  Mr. HEFNER. Mr. Chairman, I rise in opposition to the bill. I think 
it is unfortunate that we were not able to offer an amendment that 
would have corrected this bill. I rise in opposition to the bill and 
urge my colleagues to vote against it.
  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Michigan (Ms. Kilpatrick).
  Ms. KILPATRICK. Mr. Chairman, I thank the gentleman from New York 
(Mr. Rangel) for his leadership and for this opportunity to speak. I 
think today is a great day for our country as well as for the hundreds 
of millions of people who live on the continent of Africa, the largest 
continent in the world; the richest continent in the world, with its 
minerals, its gold, its silver, its ivory.
  I think this is a good opportunity, and I commend the Committee on 
Ways and Means and all those who have worked on this bill over these 
years to begin the partnerships that Africa wants, that our country 
needs, to stimulate both growth and development here in this country 
and on the continent of Africa.
  Is it a perfect bill? No, it is not. But as we worked through the 
process, it is very much a beginning, a beginning where our American 
businesses can partner with African businesses to employ hundreds of 
thousands of people, to increase tax revenues on this side of the 
Atlantic, as well as improve our schools and offer more revenues for 
our national treasury.
  I participated in the most recent presidential mission to Africa last 
December. It was a fine mission. We visited six different African 
countries. It was my fifth visit to Africa. All six of those prime 
ministers, heads of state that we met with want this bill. All of the 
ambassador corps who work with us in Washington want this bill.
  They know it is not perfect. But what it will do is begin to allow 
American businesses and African countries to partner in such a way that 
we stimulate employment on the continent and revenue-generating, 
enterprising government, American businesses growth on this side of the 
Atlantic.
  I commend the Committee on Ways and Means, the gentleman from 
Washington (Mr. McDermott), the gentleman from Illinois (Mr. Crane) and 
the gentleman from New York (Mr. Rangel) for their leadership. We have 
a long way to go. This is a first step to that.
  I believe that as we move to the 21st century, the wellness of Africa 
and the wellness of America are inextricably tied together. This 
legislation begins to operate what I see and what I view as a real win 
for both countries.
  Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. JACKSON of Illinois. Mr. Chairman, will the gentleman yield?
  Mr. CRANE. I yield to the gentleman from Illinois.
  Mr. JACKSON of Illinois. Mr. Chairman, I am very concerned about 
majority participation, i.e. African Americans, in the African trade 
bill. If the gentleman would indicate any provision of the bill for the 
general audience about how African-American shipping companies and 
businesses are participants in this bill, I would be grateful for an 
answer.
  I thank the gentleman for yielding.
  Mr. CRANE. All I can say is any American business can be a 
participant in the bill. They are all welcomed. We do not discriminate. 
We are not really concerned about whether they are white, whether they 
are black, whether they are Hispanic, whether they are Asian.
  We want to encourage business across the board, one and all. That 
specific kind of provision is not incorporated in the language of the 
bill.
  Mr. JACKSON of Illinois. If those businesses are found to be 
discriminatory at home, not hiring African Americans, then it is 
problematic for the bill; is it not?
  Mr. CRANE. I do not know of any business that is guilty of that and 
that would violate our guidelines, anyway.
  Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr. 
Portman), our distinguished colleague on the Committee on Ways and 
Means.
  Mr. PORTMAN. Mr. Chairman, I will not take 2 minutes, but I do want 
to stand here to support the legislation and what the gentleman from 
Illinois (Mr. Crane), the gentleman from New York (Mr. Rangel) and 
others have put together.
  It is a good bill. It is exactly the right approach to take in terms 
of trade because it is going to benefit the United States and sub-
Saharan Africa.
  Many nations in sub-Saharan Africa are beginning to implement 
democratic reforms, Mr. Chairman, expand economic growth in ways that 
they can to try to bring greater prosperity and stabilize the region. 
For too long, in my view, we have relied simply on foreign assistance, 
and frankly, that is drying up as well, to help facilitate these 
changes. This is a much better approach.
  Through this legislation today we have got an opportunity to assist 
this changing region in a much better way, and that is through 
commerce. The legislation allows the U.S. to take a very positive role 
in encouraging an economic and political renaissance really throughout 
sub-Saharan Africa, it establishes a free trade area to serve as a 
catalyst for increasing trade and for increasing private-sector 
development in the region. It also helps the U.S. facilitate these 
market-led economic reforms in 48 countries in this region.

[[Page H1050]]

  The bottom line for me, really the big picture here, is that the 
United States, by passing this legislation, is supporting economic 
self-reliance for sub-Saharan African countries, particularly those who 
are committed to the kind of economic and political reform that many 
countries in the region are going toward anyway, and market incentives, 
private-sector growth, eradication of poverty. I urge my colleagues to 
support it as an important trade initiative, but also something that is 
good for the United States and good for the African continent as a 
whole.

                              {time}  1400

  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentleman from 
North Carolina (Mr. Watt).
  Mr. WATT of North Carolina. Mr. Chairman, I thank my colleague from 
New York for yielding me this time.
  Let me make two points. First of all, I am a strong supporter of 
African development. Second of all, I have the greatest respect for the 
sponsors of this bill, as well as people who are opposed to the bill. 
Having said that, I want to rise in opposition to this bill.
  When I was growing up, there was a saying that if it looks like a 
duck and quacks like a duck, it probably is a duck. But every once in a 
while, what looks like a duck and quacks like a duck is a decoy, and 
this bill, it seems to me, is a decoy at this point. It falls short of 
being a true development bill for Africa in several respects.
  There were opportunities to improve this bill and actually make it a 
duck if the Committee on Rules had allowed amendments to be offered on 
the floor of the House. They would have addressed worker rights and 
human rights. They would have addressed the control of the African 
countries over development. They would have addressed the textile and 
apparel concerns of people in this country.
  Unfortunately, the Committee on Rules saw fit not to make those 
proposed amendments in order on this bill. Therefore, the bill must be 
considered as it is currently written. Right now, the bill falls short 
of being a bill that I believe merits support, and I encourage my 
colleagues to vote against the bill.
  Mr. CRANE. Mr. Chairman, I yield 1 minute to the gentleman from North 
Carolina (Mr. Ballenger), our distinguished colleague.
  Mr. BALLENGER. Mr. Chairman, I rise today in opposition to H.R. 1432. 
How can we call this bill the African Growth and Opportunity Act when 
there is a question about growth and opportunity for anyone in this 
bill, except for Asians. Only 35 percent of a product must be produced 
in Africa, and the rest can be produced in China or Bangladesh.
  In its current form, H.R. 1432 poses a serious risk to our domestic 
textile industry and its employees. Thousands of American workers and 
many in my district could be without jobs because this bill does not 
stop the illegal transshipment of apparel from other countries, 
particularly China.
  We need to add safeguard provisions that would ensure that U.S. 
textile workers, not Asian textile workers, manufacturers, get to 
produce the fabric that the African workers turn into clothes. This 
would not only help American workers but would provide more jobs to 
Africans. Without these provisions, we are looking at a lose/lose 
scenario for Africans and American workers.
  Unfortunately, the Committee on Rules denied the opportunity to vote 
on an amendment to require that the apparel receiving duty-free and 
quota-free treatment be constructed of U.S.-manufactured yarn and 
fabric, so I ask for a vote against the bill.
  Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentleman from 
Virginia (Mr. Moran).
  Mr. MORAN of Virginia. Mr. Chairman, I am strongly in favor of this 
bill. It is about time we had a bill that actually respected the people 
of Africa, that was not based upon colluding with their corrupt leaders 
or exploiting them but finally treats the people of Africa with 
respect. It will empower the laborers of Africa, particularly the 
women, to get microenterprise loans, and to have a competitive market 
in this country to sell their handmade apparel and other handicraft 
products.
  This is the least we can do. There is not another continent in the 
world that this country has exploited more than Africa. The African 
people were the underpinnings of our slave agricultural economy for our 
first two centuries of growth. It is about time we turned American 
policy toward Africa around and showed some recognition of the inherent 
value of the people of Africa.
  Africa is the only continent in the world whose poverty is expected 
to increase over the next decade. Given our history of exploitation and 
enslavement of African men and women is it not now at least partly our 
responsibility to turn that around, to see to it that they progress 
with the rest of the world into the 21st century and enjoy some respect 
and dignity. We should all be voting ``aye'' on this bill.
  Mr. CRANE. Mr. Chairman, I reserve the balance of my time.
  Mr. RANGEL. Mr. Chairman, I yield 1 minute to the gentlewoman from 
the Virgin Islands (Ms. Christian-Green).
  Ms. CHRISTIAN-GREEN. Mr. Chairman, I thank my colleague for yielding 
me this time.
  The time has come for our Nation to give the continent of Africa the 
same opportunities for economic growth that we have given to virtually 
every other region of the world. When all is said and done, my 
colleagues, that is what H.R. 1432 is all about and seeks to do.
  Many of the 48 countries that make up Sub-Saharan Africa have 
undergone remarkable changes in recent years. More than 30 of them have 
begun programs to replace outdated and corrupt centralized economies 
with freer markets. If we pass this bill we will be saying to those 
countries that we support their efforts and want to join them in going 
even further.
  This is an historic moment, Mr. Chairman. It is an opportunity to 
give Sub-Saharan Africa the same incentives to address their problems 
of chronic poverty, poor infrastructure and limited economic 
opportunity that we have given to other nations.
  The concerns of some of our colleagues can be addressed, so let us 
not derail this opportunity which will be beneficial to both us and 
Africa. It is not a perfect bill, but it is a good beginning.
  My colleagues, the continent of Africa deserves our support. We 
should give it to her. Pass H.R. 1432.
  Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume 
to take the opportunity to speak to some of the concerns that some of 
my colleagues have had as relates to transshipment, which is always an 
issue when we are dealing with any type of a trade bill. Because of 
this concern, the Committee on Ways and Means had put in specific 
language to increase the penalties for any country that is found guilty 
of transshipment. But the interesting thing is that these African 
countries, more than any other countries that we are dealing with in 
trade, are so sorely in need of jobs that they would be the ones that 
are looking forward to getting assistance and having their people 
trained and having the ability to participate in international trade.
  The World Trade Organization has rules against violations of 
transshipment, and certainly we will have the resources as well as the 
customs agencies to see what is coming into the United States. We 
certainly can determine whether it came from the continent of Africa, 
and since they only penetrate our market 1 percent, and it is believed 
that they do not have the ability or the capability to penetrate it 
more than 2 percent, if there was a question of transshipment, it 
should be something that would be easily found.
  I also would like to deal with the question of human rights and the 
question of workers' rights. As most people know, these are included in 
the GSP, and the President of the United States has responsibility 
before he signs off on any agreement to make certain that that 
agreement is in the international interests as well as the interests of 
the people of the United States of America.
  So whether we are talking about environment or human rights or 
workers' rights incorporated in the concept, the language in the bill 
would certainly take care of that.
  I am particularly concerned that the people in these developing 
African countries have not only looked forward to the United States 
executive branch for leadership, but have worked very

[[Page H1051]]

closely with the members of the committee and their staff to make 
certain that the relationship was one of mutual respect. I think those 
are the magic words when we are dealing with any country: mutual 
respect. Whatever guidelines and conditions are necessary in order to 
give assurances to investors, it is not the United States who sets the 
guidelines, it is the international community that does that.
  So the bill was drafted not only with the concerns of the Africans, 
but something that could get the support of liberals and conservatives, 
Republicans and Democrats, because even though some people may think 
this is a decoy and not a duck, the President of the United States 
believes it is a trade bill, the Secretary of State believes it is a 
trade bill, the members of the committee believe it is a trade bill, 
but most importantly, our African friends who are dependent on this, 
who are looking forward to this and having hope for the future, believe 
it gives them an opportunity as a trade bill.
  So I do hope that those that have reservations would understand that 
this is far from a perfect document. How could it be, with so many 
people coming from so many directions? And the fact that these are 
countries in Africa does not mean that they do not have differences 
among themselves in terms of what should be in the bill.
  Mr. Chairman, this is something to work toward. This is something to 
give opportunities to people in the United States to look forward to 
having a better working relationship with our friends in Africa, but 
just as important, to develop markets in Africa.
  So it is hoped, as when we went and traveled throughout the Sub-
Sahara, that African Americans with talent, many of whom were on the 
trip with us, would get the opportunity to show to our African brothers 
and sisters what we will be able to contribute, not mandate 
relationships but to contribute through joint ventures in working with 
them. Indeed, on the trip some of these concepts became deals, and we 
were able to work out arrangements, working with the Department of 
Commerce, working with the Eximbank, working with OPIC.
  All of this is a part of it, and of course this is not a substitute 
for assistance in terms of education and health and economic 
development, but it is also an opportunity for us to continue to give 
assistance and at the same time be able to make certain that one day 
this type of assistance would not be necessary.
  So I think that all of us who would want to be able to say that we 
played some very small part in bringing the countries of Africa into 
international trade will be proud of the opportunities that have been 
given to us, and we look forward to this bill not only becoming law, 
but when our President of the United States visits Africa, he will be 
armed with a document of friendship, a document, a working document 
that can improve the quality of life not only for the Africans, but to 
give opportunity to those people in these great United States.
  Mr. Chairman, I reserve the balance of my time.
  Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume to 
commend our distinguished ranking minority member for his comments, his 
insights and his explanation as to why this legislation is in the 
mutual interests of the countries affected in Sub-Saharan Africa, as 
well as in our own national interests. I think that is why it has 
attracted the kind of bipartisan support that we have enjoyed.
  I want to pay tribute to the gentleman from Washington, (Mr. 
McDermott), the gentleman from New York (Mr. Rangel), the gentleman 
from Louisiana (Mr. Jefferson), the gentleman from California (Mr. 
Matsui) over there, all the people that were there from the beginning 
and fighting the good fight.
  Mr. Chairman, on this question of transshipment, because it has come 
up and it does excite a degree of paranoia, and I think a legitimate 
paranoia on the part of those who could be adversely affected, I think 
that in this legislation we have gone further than any legislation 
heretofore in trying to cope with the situation. To that end, our bill 
directs the President to require the exporting countries in Africa to 
adopt effective visa systems to guard against transshipments and the 
use of counterfeit documents. In order to receive benefits under the 
bill, African countries are required to cooperate fully with customs in 
combating transshipments. This means enforcement of domestic laws and 
procedures, and assisting customs in efforts to verify manufacturing 
operations through visits of so-called jump teams and other measures.
  Finally, H.R. 1432 provides that exporters who engage in illegal 
transshipments and their successors would lose trade benefits under the 
bill for two years. With no market for their product, this sanction 
will have the effect of putting the bad actors out of business.
  We have in this bill, Mr. Chairman, the strongest language dealing 
with transshipment that we have ever legislated.

                              {time}  1415

  That is not to say that crime still cannot exist, but what I am 
saying is that we have gone further than we have ever gone before. I 
think we have a stronger position on this legislation than anything 
heretofore, and I think it will address the problem more effectively 
than it has ever been addressed before.
  Let me make one other observation, too. We have the understandable 
concern of our textile and apparel manufacturers in this country, and 
one of our colleagues today showed me an article of a plant in his 
district that is closing. I think it employed like 350 people. That is 
sad. That has been going on for some time.
  But his plant in his district is not closing because of our bill that 
is under consideration on the floor today. His plant is closing because 
of inefficiencies, and the inability of most of our production here in 
the United States to keep pace with competition. It is not competition 
coming from Africa.
  Our textile and apparel imports in the year 1996 totaled $46 billion, 
billion. Of that $46 billion, the portion that came from sub-Saharan 
Africa totaled roughly $380 million, out of $46 billion. The ITC, 
International Trade Commission, has estimated that with the passage of 
this bill, our imports from sub-Saharan Africa will increase from $100 
to $170 million. It will be less than 2 percent of our total imports, 
out of that $46 to $50 billion in imports from around the world.
  In addition to that, ITC has projected out that at the end of 10 
years, it will be 3 percent of our imports. So when we read these 
articles about plant closings, do not point the accusing finger at sub-
Saharan Africa. That is not what is causing the problem. It is a 
worldwide development, and it is one that has adversely impacted us, to 
be sure, because we do have more efficient competition to face 
worldwide. But do not make it look like that is coming from sub-Saharan 
Africa, and do not make it look like the passage of 1432 is going to 
have any significant impact on it.
  I urge all of our colleagues to wholeheartedly support this 
legislation.
  Mr. Chairman, I reserve the balance of my time.
  Mr. RANGEL. Mr. Chairman, I yield such time as she may consume to the 
gentlewoman from Florida (Mrs. Meek), who recently returned from Africa 
to Florida.
  Mrs. MEEK of Florida. Mr. Chairman, I am pleased and privileged to 
stand on the floor and support H.R. 1432, the African Growth and 
Opportunity Act. If we all understand what this act is supposed to do, 
it is supposed to provide opportunity for trade with sub-Saharan 
Africa. It is supposed to bring growth as to the African countries.
  Two things that are outstanding to me in this bill are political 
growth and certainly economic growth. That is a two-way street. It is 
political growth for us in the United States, it is political growth 
for sub-Saharan Africa, and it is also economic growth for both of us.
  I do not think that the Africans, as I talked to them, as we visited 
these African countries, they are not looking for a handout from the 
United States. They are very proud people. They have a history that 
goes all the way back to the Tigris and Euphrates Rivers. They 
understand what makes political and educational and economic reform. 
They are very, very pleased with this bill.

[[Page H1052]]

  I traveled with the gentleman from New York (Mr. Rangel) to Africa, 
and day-to-day and word-for-word, the African leaders want this bill. I 
do not think this bill is going to threaten in any way what we are 
already doing with Africa and with other countries. This is the 
beginning of a very, very good start to develop trade with Africa, and 
bring the respect and some of the economies of our economy to sub-
Saharan Africa.
  I beg my colleagues to vote, yes, on the African Growth and 
Opportunity Act, because it will help the world understand that we want 
to develop trade with this country. They strongly deserve the same 
opportunities that we are giving other countries, and now it is our 
time to step up to the plate and say, yes. Let us vote yes on 1432, and 
give growth and give opportunity, both economic and political, to sub-
Saharan African countries.
  Mr. RANGEL. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman for 
yielding time to me, and I thank he and the gentleman from Illinois 
(Mr. Crane) for the bill.
  Mr. Chairman, I want to emphasize the good news of this legislation, 
for as the legislation was initially offered, there were op eds popping 
up around the country saying, ``Trade, Not Aid.'' For those of us who 
understand the vast needs of the continent, and particularly sub-
Saharan Africa, our ears perked and our hearts hurt, because we 
recognized that the two are not mutually exclusive.
  We have now come full circle to have a bill that really confronts the 
hard core issues of the continent, particularly the fact of giving them 
dignity and respect on the equal playing field of trade throughout the 
world, but as well, emphasizing that there is a value to the 
humanitarian aid that this country provides. And in fact, it is not 
enough. So this bill is not trade and not aid, it is trade and aid.
  Specifically, in the bill we have $150 million for joint venturing 
and $500 million for infrastructure. I agree with my colleague, the 
gentlewoman from Florida (Mrs. Meek), that two for one, the Heads of 
State said, we are ready, and we will not engage in abuse, and we are 
likewise sensitive to the issue of human rights.
  I hope nothing we do today diminishes section 4(a), that has to do 
with the responsibility of our African countries to maintain the human 
rights of its citizens. I cannot talk about the Most Favored Nation 
status. I do not like it continuously going back and forth again, with 
China's human rights abuses growing and growing and growing. We should 
contend with that. But I do think the Heads of State in Africa are 
concerned enough that they want to work on the question of human rights 
and the responsibility to all of their citizens.
  Lastly, let me say, Mr. Chairman, this is an ideal opportunity for a 
continent which saw so many of its own shipped as slaves to this 
continent, a devastating time in our history, a tragic time. Here we 
now have an opportunity to change those chains of slavery into the 
uplifting of all of the boats of economic opportunity, providing 800 
million Africans, with African Americans and others in this country, 
and challenging our multinational companies once and for all to open 
the doors of opportunity.
  I ask my colleagues to vote for the bill and lift all the boats at 
sea at this time.
  Mr. CRANE. Mr. Chairman, I yield 3 minutes to our distinguished 
colleague, the gentleman from Minnesota (Mr. Ramstad).
  Mr. RAMSTAD. Mr. Chairman, I thank the distinguished gentleman for 
yielding time to me.
  Mr. Chairman, I rise today in support of the African Growth and 
Opportunity Act, and in strong support of this legislation. As I said 
during our Subcommittee on Trade hearing on this bill, Mr. Chairman, it 
sets up a win-win situation for both the United States and countries in 
sub-Saharan Africa. This bill will mean a tax cut for consumers here at 
home, who depend on reasonably priced clothing, and it will promote 
continued political and market liberalization in sub-Saharan Africa.
  As a strong supporter generally of free trade and liberalization, I 
know the trade elements of this bill are extremely important. 
Inexpensive imports are good for consumers here in America, and 
increased exports are good for U.S. workers and employers.
  I want to focus on the significant goals of this legislation, because 
this legislation before us today, Mr. Chairman, sends a strong signal 
of encouragement to the peoples of the sub-Saharan nations.
  Just since 1990, more than 25 African nations have held democratic 
elections. Over 30, 30 of these nations have instituted programs to 
replace their centralized economies with free markets, a very, very 
significant fact. We all know stronger economies contribute to social 
and political stability, and we must, we must, Mr. Chairman, take steps 
to help secure that stability.
  Increased investment and trade activity with the United States will 
help improve the economic conditions of all the sub-Saharan nations, 
and as our Committee on Ways and Means has heard from many African 
officials, they want the opportunity to industrialize their economies 
and to facilitate technology transfers. They support the bill's efforts 
to encourage foreign investment and direct private sector involvement 
in further economic development in the region.
  The Ambassador of Tanzania, Mr. Chairman, has made one simple yet a 
very crucial request of us. He said at the hearing, and I am quoting 
now, ``Please, please give Africa a chance to prove that she can become 
a valuable and viable trading partner with the United States.''
  Mr. Ambassador, we want to give you that chance. We have the 
opportunity to give you that chance today by passing this legislation, 
and I urge all Members to vote for H.R. 1432 and give Africa this 
chance.
  Mr. RANGEL. Mr. Chairman, I yield myself such time as I may consume.
  As we close this debate, Mr. Chairman, I would like to submit for the 
Record letters that have been sent to me by the President and the 
Secretary of State, and with the consent of this body, just to read the 
last paragraph of each.
  From Madeleine Albright, our Secretary of State, she says, ``This 
critical legislation will advance one of our most important foreign 
policy goals in Africa: Integration of African countries into the 
global economy. The approximately 600 million consumers in Africa 
deserve a better future. The African Growth and Opportunity Act is an 
important first step in that direction, and I strongly urge you to 
support it.''
  Mr. Chairman, I include this letter for the Record.
  The letter referred to is as follows:

                                       The Secretary of State,

                                                       Washington.
     Hon. Charles Rangel,
     Committee on Ways and Means, House of Representatives, 
         Washington, DC.
       Dear Mr. Rangel: The African Growth and Opportunity Act, 
     H.R. 1432, is scheduled for a floor vote today. Passage of 
     this landmark legislation is one of our highest legislative 
     priorities. As you know, President Clinton made a strong 
     statement in support of the bill during the State of the 
     Union speech.
       Passage of the African Growth and Opportunity Act will send 
     an important signal to Africa that we will help those 
     countries which help themselves by pursuing sound economic 
     and political reform policies. The Act will provide 
     substantial trade and debt relief benefits to those African 
     countries which are undertaking significant economic reforms. 
     The African Growth and Opportunity Act will help African 
     countries improve their own business climates so that U.S. 
     companies can better compete in the important emerging 
     markets of Africa.
       We believe the legislation contains adequate provisions to 
     prevent injury to U.S. industries and jobs. The impact on 
     U.S. consumers, workers and industries must be assessed by 
     the International Trade Commission (ITC) before the President 
     is authorized to grant the additional duty-free preferential 
     market access provided by the Bill. A recent ITC study of the 
     textile provisions in the Act concluded that duty-free, 
     quota-free entry of textile and apparel products from Africa 
     would have a negligible impact on U.S. industries and 
     workers.
       This critical legislation will advance one of our most 
     important foreign policy goals in Africa--integration of 
     African countries into the global economy. The approximately 
     600 million consumers in Africa deserve a better future. The 
     African Growth and Opportunity Act is an important first step 
     in that direction, and I strongly urge you to support it.
           Sincerely,
                                            Madeleine K. Albright.


[[Page H1053]]


  Mr. Chairman, I also would like to read from a letter from the 
President, who says, ``We face a historic opportunity to assist the 
renaissance in Africa. Congress has the chance to help this 
transformation by enacting the African Growth and Opportunity Act. When 
it comes time to cast your vote, I urge you to support this 
legislation.''
  Mr. Chairman, I include for the Record the entire letter from the 
President.
  The letter referred to is as follows:


                                              The White House,

                                   Washington, DC, March 11, 1998.
     Hon. Charles B. Rangel,
     House of Representatives,
     Washington, DC.
       Dear Charlie: I strongly support passage of H.R. 1432, the 
     African Growth and Opportunity Act, which would provide 
     enhanced trade benefits for sub-Saharan countries engaged in 
     meaningful reform efforts.
       The United States strongly supports a stable, prosperous 
     Africa. Africa is a continent on the doorstep of a new era of 
     democracy and prosperity, and many countries have adopted 
     market-oriented economic and political reforms in the past 
     seven years. A stronger, stable, prosperous Africa will be a 
     better economic partner, a better partner for security and 
     peace, and a better partner in the fight against drug 
     trafficking, international crime, terrorism, and the spread 
     of disease and environmental degradation. Africa is already 
     an important trading partner for the United States. Our 
     exports to Africa are over $6 billion annually.
       In addition, America has its own special reasons to 
     contribute to Africa's economic development. Over thirty 
     million Americans have ancestral origins in Africa. We should 
     work to help African nations achieve greater prosperity and 
     stronger democracies, which will improve the lives of the 
     African people. The bill helps us do that.
       This bill is supported by a bipartisan and diverse cross-
     section of Americans and concerned groups--including Jack 
     Kemp, David Dinkins, Andrew Young, the United States 
     Conference of Mayors and the National Urban League. They know 
     this bill is good for both Africa and America.
       We face a historic opportunity to assist the renaissance in 
     Africa. Congress has the chance to help this transformation 
     by enacting the African Growth and Opportunity Act. When it 
     comes time to cast your vote, I urge you to support this 
     legislation.
           Sincerely,
                                                             Bill.

  Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I thank the gentleman from New York for his remarks.
  Mr. Chairman, I would like to conclude with a letter that was sent to 
all of our colleagues by a former colleague, Jack Kemp.
  He wrote,
       I am writing to ask you to support important legislation 
     that is expected to come to the House floor for a vote on the 
     African Growth and Opportunity Act. Much of Africa is growing 
     dynamically. Political and market liberalization are 
     revitalizing and energizing the continent.
       There is a new generation of leaders implementing 
     democratic reforms, expanding economic growth, and unleashing 
     the human spirit that will help bring greater stability, 
     prosperity and democracy to African nations.
       African leaders would like some help building this hopeful 
     start on a full-scale boom, yet they aren't for the most part 
     asking for more development assistance. They would like 
     expanded trade, not aid. They would like an opportunity for 
     their people to become self-reliant.
       To that end, the African Growth and Opportunity Act would 
     create a trade component of U.S. policy towards sub-Saharan 
     Africa. In particular, it would establish a goal of achieving 
     a free trade area with countries that meet the economic 
     criteria of the bill.
       In addition, H.R. 1432 calls for a trade and economic 
     cooperation forum between the United States and economic 
     reformers in sub-Saharan Africa to facilitate discussion on 
     the elimination of trade and investment barriers.
       In the near term, the bill offers countries in the region 
     enhanced opportunities for duty-free trade with the U.S. 
     under the Generalized System of Preferences program. I firmly 
     believe that we have an historic opportunity to open a new 
     era in our relations with this region. This bill will foster 
     a brighter future for sub-Saharan Africa based on free market 
     reforms, expanded economic activity, and enhanced self-
     reliance. I urge you to vote yes on H.R. 1432.
           Sincerely,
                                                        Jack Kemp.

  Mr. HASTINGS of Florida. Mr. Chairman, I would like to express my 
strong support for H.R. 1432, ``the African Growth and Opportunity 
Act,'' a primary tool for expanding trade and investment with Africa.
  Mr. Speaker, I believe that this bill is a major milestone in U.S.-
Africa relations as it brings focus on Africa in a positive manner. 
This bipartisan legislation will not only provide new jobs for African 
workers, and greater opportunities for the American business community 
to invest in Africa, it will contribute to peace, stability and 
democracy throughout that continent.
  For the past several years the United States has always traded with 
Asia and Europe. Today, the wind of change is finally blowing in Africa 
which will create U.S. investment and forums for African and American 
businessmen to cooperate.
  Africa remains a vital place with abundant natural resources. As the 
world's largest and most technologically advanced economy, the U.S. can 
and must continue to do more to contribute to Africa's economic 
development, if not for any other reason than the mere fact that if we 
don't help them someone else will.
  I am excited about the prospect for this legislation and the enormous 
benefits it will bring to both the United States and the countries of 
sub-Saharan Africa.
  However, there are some legislators who oppose the bill. Some would 
have us believe that the bill would lead to a surge of apparel and 
textile imports into the U.S. and damage U.S. workers. This is a myth! 
U.S. imports of textiles and apparel from sub-Saharan Africa account 
for less than 1 percent of total U.S. imports of such goods. Others 
will have us further believe that the bill will encourage illegal 
transshipments from other countries under quota. That, too, is a myth. 
There are current U.S. customs laws to prevent transshipments and would 
apply. Moreover, the bill requires exporting countries in sub-Saharan 
Africa to adopt a visa system to guard against transshipments, and to 
cooperate fully with the United States in preventing transshipments as 
required by the WTO.
  Among other provisions in the bill are the equity and infrastructure 
funds to be supported by the Overseas Private Investment Corporation 
(OPIC). OPIC would establish a $150 million equity fund and a $500 
million infrastructure fund to support African entrepreneurs in 
developing private sector enterprises. This will create new jobs for 
Africans and new export opportunities for U.S. companies and American 
workers.
  Finally, Mr. Speaker, this bill enables the U.S. to play a positive 
role in Africa's future. We have now entered into a ``new and promising 
phase'' in Africa, and while I applaud the previous efforts of the 
administration and the United Nations, as well as other organizations, 
I believe that we must now step up our efforts and rise to this 
occasion.
  Mr. FAZIO of California. Mr. Chairman, I rise in support of the 
African Growth and Opportunity Act. This legislation promises to 
diverge from the United States historical role of provider to Africa 
and establish instead a bilateral agreement for trade. Trade promises 
growth in our country's economy and in the nations of Sub-Sahara 
Africa. However, I would also like to take opportunity to raise 
concerns that industries in my district have voiced. The African Growth 
and Opportunity Act provides opportunity for free trade but doesn't 
protect some of our product-sensitive industries quite enough.
  The Generalized System of Preferences (GSP) and free trade area 
preference provisions of the Sub-Sahara African trade bill pose special 
concerns for the California cling peach industry because of the 
possibility that under those provisions, duty-free access might be 
extended to South Africa and other competitive African producers of 
cling peach products.
  Even with existing U.S. tariff rates, South Africa is already a low-
cost, choice quality supplier of canned peaches, fruit mixtures and 
other cling peach products to U.S. markets. We must ensure that South 
Africa will not sell their products at a significantly lower price than 
U.S. products at the expense of our farmers and processors.
  The California cling peach industry's product sensitivity is 
undisputed. The industry has long suffered the adverse effects of 
canned fruit subsidies provided by the European Union. Our government 
has recognized the unfairness of these EU practices and has sought to 
correct that unfairness through GATT dispute settlement, a bilateral 
agreement, numerous consultations, and most recently multilateral 
pressure through the WTO Committee on Agriculture.
  I urge our government to take all necessary steps to preserve the 
current U.S. tariffs on canned peaches, canned fruit mixtures, and 
other cling peach products. This valuable sector of U.S. agriculture, 
which for too long has been denied relief from EU subsidies, deserves 
no less than this from the U.S. government.
  Ms. KILPATRICK. Mr. Chairman, if you support self sufficiency for 
Africa, you must support the African Growth and Opportunity Act. Once 
you separate fact from fiction, the African Growth and Opportunity Act 
deserves your support by removing many of the hurdles impeding free-
market reform.
  Myth: The African Growth and Opportunity Act Does Not Have Labor 
Protections
  Fact: The bill requires the President, as a condition for eligibility 
for benefits, to determine that African countries do not engage in 
gross violations of internationally-recognized

[[Page H1054]]

human right, including core labor standards. Also, African nations must 
observe existing statutory criteria on internationally-recognized 
worker rights as a condition for duty-free benefits under the 
Generalized System of Preferences (GSP).
  Myth: The African Growth and Opportunity Act Does Not Help African 
Self-Sufficiency
  Fact: The bill was developed with the full input of African 
governments and represents a shift from dependence on foreign 
assistance to a private sector, market oriented incentive approach.
  Myth: The African Growth and Opportunity Act Hurts U.S. Textile 
Imports
  Fact: U.S. imports of textiles and apparel from Africa accounts for 
less than one percent of total U.S. imports of textiles and apparel. 
The impact on the U.S. textile industry would be negligible.
  We have a unique opportunity, and a window of opportunity, for self-
determination--kujichagulia--for the countries of sub-saharan Africa. 
According to the Congressional Research Service:

       Most of U.S. trade with sub-Saharan Africa is with only a 
     few countries. In 1997, three-quarters of U.S. exports to the 
     region went to five countries: South Africa (49% of U.S. 
     exports to the region), Nigeria (13%), Ghana (5%), Angola 
     (5%), and Kenya (4%). The other 43 countries accounted for 
     the remaining one-quarter of U.S. exports to the region. In 
     1997, 84% of U.S. imports from the region came from four 
     countries: Nigeria (37% of U.S. imports from the region), 
     Angola (17%), South Africa( 15%) and Gabon (13%). The other 
     44 countries accounted for only 16% of U.S. imports from the 
     region. (CRS Issue Brief for Congress, Number 98015, March 5, 
     1998, page 3.)

  We need to expand trade and development with the continent that is 
the cradle of civilization--Africa. In combination with continued 
effective aid, this bill will expand trade beyond these four nations. 
This legislation is but a start in the right direction toward 
encouraging private investment and development in sub-saharan Africa. I 
have attached an editorial article in the Washington Post in support of 
this bill on final passage, and encourage the support of all of my 
colleagues on this great opportunity and fantastic initiative toward 
empowerment for Africa. I thank the Speaker and my colleagues for this 
time.

                [From the Washington Post, Mar. 7, 1998]

                           How To Help Africa

       The House is scheduled to vote next week on an African 
     trade bill. In the past, that would have been an oxymoron. 
     The United States traded with Asia and Europe but sent aid to 
     sub-Saharan Africa. This new approach, which treats African 
     nations more as partners than as charities, is welcome--
     though not sufficient.
       Many of the world's poorest people inhabit Africa, their 
     economies in danger of being left behind altogether as trade 
     and investment unite the rest of the world. But in recent 
     years, the true picture has not been quite as gloomy as news 
     reports on civil wars and coups d'etat might suggest. Many 
     African countries have moved toward democracy and free-market 
     reforms. Many are trying to spend more on basic health and 
     primary education. Many want to help themselves and not 
     depend forever on foreign aid.
       This bill is aimed at those nations. It was put together by 
     Republican Rep. Philip Crane and Democrats Charles Rangel, 
     Jim McDermott and William Jefferson, and embraced by the 
     Clinton administration. It would seek to encourage trade 
     between Africa and the United States by removing quotas and 
     many tariffs from the kinds of products these poor nations 
     could most plausibly export: textiles, clothing, footwear. It 
     would stimulate and insure private U.S. investment in Africa, 
     and create forums for African and American businessmen to 
     cooperate.
       The legislation carries a tiny price tag, but some in the 
     House and Senate oppose it for protectionist reasons. Yet 
     African textiles now account for only two-thirds of one 
     percent of total U.S. textile imports and are unlikely to 
     rise above 2 percent even in the most optimistic (by African 
     lights) scenarios. Africa's industry is not a threat to the 
     U.S. economy.
       A more serious objection--though not a disqualifying one--
     is that this bill will accomplish less than some rhetoric 
     suggests. For countries as poor as those in sub-Saharan 
     Africa, where average annual per capita income hovers below 
     $500, trade and investment alone can't do the job. Aid 
     remains essential, as the bill's authors acknowledge, and yet 
     U.S. assistance to Africa declined by 25 percent during the 
     past two years. This trade bill can help, but only in 
     combination with effective aid and substantial debt relief.
  Mr. WOLF. Mr. Chairman, I rise in strong support of the amendment 
offered by Representative Linda Smith to the Africa Growth and 
Opportunity Act (H.R. 1432). The amendment would require the President 
to consider, when deciding whether a country is eligible to participate 
in the trade benefits provided in the bill, whether that country is 
cooperating with the United States to eliminate slavery in Africa.
  Real life chattel slavery is not a thing of the past, Mr. Chairman. 
It exists today in the Sudan--a country I have visited three times. 
Today, any member here could board a plane, fly to Kenya and get on a 
transport plane in Lokichokio air base in Northern Kenya. Several hours 
later, you would land at a remote air strip in Southern Sudan. You 
would walk several hours through tough, dry and desolate terrain, where 
you could then visit a slave market where women and children are sold 
for money. Some for as little as $15 a piece.
  Slavery in Sudan has been well documented. The State Department has 
known about it since 1993. I submit for the record a State Department 
cable which I had declassified in 1993, which states ``credible sources 
say Government of Sudan forces, especially in the PDF [People's Defense 
Forces], routinely steal women and children in the Bahr El Ghazal. Some 
women and girls are kept as wives; the others are shipped north where 
they perform labor on Kordofan farms or are exported, notably to Libya. 
Many Dinka are reported to be performing forced labor in the areas of 
Meiram and Abyei.''
  In 1996, two Baltimore Sun reporters visited Sudan, bought back 
children who had been enslaved and returned them to their families. 
They interviewed former slaves and published a provocative series of 
articles about their experience.
  There is no doubt. Slavery is taking place in the Sudan. We must 
encourage governments to end it.
  The amendment offered by Representative Smith sends an important 
message. No trade benefits with the United States until you eliminate 
this brutal human rights abuse. I urge my colleagues to support it.

                                     U.S. Department of State,

                                                   Washington, DC.
     Hon. Frank R. Wolf,
     House of Representatives.
       Dear Mr. Wolf: Thank you for your letter of May 5, 
     regarding human rights abuses in Sudan. The Embassy in 
     Khartoum provided the information you requested, which is 
     enclosed. Assistant Secretary Moose provided much of this 
     information in his testimony on May 4 to the Senate Foreign 
     Relations Subcommittee on Africa.
           Sincerely,

                                            Robert A. Bradtke,

                                        Acting Assistant Secretary
                                          for Legislative Affairs.
       Sudanese Government personnel appear to be perpetrating 
     widespread human rights abuses in parts of the Bahr El Ghazal 
     and the Nuba Mountains. There are recent, credible reports of 
     massacres, kidnapping and forced labor, conscription of 
     children, forced displacement and Arabization, and other 
     abuses in these regions. There is evidence that some abuses, 
     notably kidnapping, may be carried out by poorly-controlled 
     militias without the approval and perhaps against the wishes 
     of the authorities. Other abuses, however, are occurring with 
     a frequency and on a scale that make it difficult to think 
     that they are happening without the knowledge of the 
     authorities.
       Reliable information on the western ``transition zone''--
     south Kordofan, including the Nuba Mountains, and Bahr El 
     Ghazal--is hard to obtain. Access to the area is restricted. 
     Recently, however, there has been evidence from credible, 
     well-informed sources of widespread GOS abuses in this zone.
       According to several sources, forces of the Government of 
     Sudan regard the entire Bahr El Ghazal south of Babanusa, 
     outside of government-held towns, as an ``operational area.'' 
     Anyone found there is considered a SPLA member or supporter 
     and killed or captured. For example:
       In late 1992 and in February-March 1993 two military 
     trains, each with about 3,000 troops aboard, proceeded from 
     Babanusa to Wau. Some of the troops were from the army, but 
     most were members of former Arab tribal militias, which the 
     Government of Sudan/National Islamic Front (GOS/NIF) has 
     incorporated into the Popular Defense Forces (PDF).
       The first train advanced preceded by foot soldiers who 
     killed or captured the civilians on their path. They burned 
     houses, fields, and granaries, and stole thousands of cattle. 
     Hundreds are estimated to have died.
       The March 1993 train carried horses that extended the 
     soldiers' range. In five days, they reportedly killed almost 
     a thousand persons between Manwal Station and Aweil and 
     captured 300 women and children. The burning of granaries and 
     fields and theft of cattle caused many who escaped the troops 
     to die later of starvation.
       The sources state that when military convoys moving in the 
     Bahr El Ghazal lose vehicles to SPLA mines, the troops 
     typically burn the first village they find and kill its 
     inhabitants.
       Credible sources report heavy fighting from December 1992 
     to March 1993 in the Nuba Mountains, particularly in the 
     Tulisci Range. Fleeing Nubans speak of widespread destruction 
     of villages and killings near Dilling and Kadugli--including 
     a massacre at Belenya, which reportedly was razed.
       Credible sources say GOS forces, especially the PDF, 
     routinely steal women and children in the Bahr El Ghazal. 
     Some women and girls are kept as wives; the others are 
     shipped north where they perform forced labor on Kordofan 
     farms or are exported, notably to Libya. Many Dinka are 
     reported to

[[Page H1055]]

     be performing forced labor in the areas of Meiram and Abyei. 
     Others are said to be on farms throughout Kordofan.
       There are also credible reports of kidnappings in Kordofan. 
     In March 1993 hundreds of Nuer displaced reached northern 
     Kordofan, saying that Arab militias between Abyei and Muglad 
     had taken children by force, killing the adults who resisted. 
     The town of Hamarat el Sheikh, northwest of Sodiri in north 
     Kordofan, is reported to be a transit point for Dinka and 
     Nuba children who are then trucked to Libya.
       While PDF kidnapping of women and children seems recurrent, 
     it is not, however, condoned by all GOS authorities. When the 
     March train from Babanusa arrived in Wau, authorities forced 
     the PDF to release the 300 women and children they had 
     captured. Later that month, army forces at Aweil searched a 
     train of PDF returning from Wau. They found and freed women 
     and children who were being held in boxcars. In early 1993 
     the PDF captured near Meiram five children between 7 and 12. 
     When a relative learned of their whereabouts and contacted 
     the police, the children were released.
       Credible sources say that when the March military train to 
     Wau reached Meiram, soldiers raped scores of displaced women. 
     Thousands of displaced are currently reaching northern 
     Kordofan from Bentiu and the Nuba Mountains. Medical workers 
     note an unusually high rate of pregnancies among the women, 
     who say the PDF raped them.
       There are credible reports of widespread conscription into 
     government militias of children 10 or 11 and above from 
     ``peace camps'' (resettlement camps) in the Nuba Mountains. 
     In late January, 1993, soldiers in El Obeid impressed into 
     the PDF scores of boys 13 and above. (The families, however, 
     later secured the release of the children who could prove 
     they were enrolled in school.)
       Credible sources state that since November 1992, thousands 
     of displaced Nubans, particularly from the Tulisci, Habila, 
     Koalib, Mendi, Tima, Lagawa, Sellara, Dilling, Kadugli, and 
     Miri areas have been passing through El Obeid. Some are 
     fleeing on their own, but others are being moved by the 
     authorities. The governor of Kordofan has publicly said that 
     the Government has moved many civilians from ``unsafe to 
     secure areas.'' Some 2000 Nubans from En Nahud were left in 
     rags last November outside El Obeid, without money, food, or 
     shelter.
       Credible sources describe different forms of forced 
     Arabization. Under a policy sometimes known as ``the marriage 
     of fifty,'' Arab soldiers are encouraged to wed southern 
     women they capture. Soldiers who have children from these 
     marriages get special premiums. In displaced camps in Meiram 
     and Abyei, some Islamic charities reportedly offer to feed, 
     clothe, and educate destitute Dinka children--but in return, 
     parents may not have contact with their offspring. Some areas 
     are closed to Christian charities, even indigenous ones, 
     while Muslim charities operate freely.
       There are reports that thousands died of starvation in 
     Meiram displaced camp last year, while local authorities 
     would not release donated relief food stored in Babanusa. 
     There are consistent, credible reports that the PDF routinely 
     steals large amounts of relief food donated for the 
     displaced. Credible sources state that if the populations in 
     the displaced camps at Meiram, Abyei, and Daeim do not 
     receive food urgently, thousands more will die this year.
       Some casualty figures and other details may have been 
     exaggerated by frightened and shocked witnesses, but the 
     general tenor of the above reports appears credible. It 
     tracks with fragmentary reports of abuses in the Nuba 
     Mountains and Bahr El Ghazal that have become available from 
     other sources over a period of months.
       To be fair, it must be said that many of these abuses, 
     including the massacres, kidnapping and forced Arabization, 
     have occurred time and again in these areas for years. 
     Moreover, the reaction of the authorities in specific cases 
     of kidnapping and enslavement suggest that the latter may be 
     the fact of poorly-controlled militias acting without 
     official approval--although, if this is the case, the 
     authorities are derelict for not energetically curbing PDF 
     excess. Other abuses, however, are occurring with a 
     frequency, and, in the case of the massacres in particular, 
     on a scale that make it difficult to think that they are 
     happening without the knowledge of the Government of Sudan.
  Mr. KLINK. Mr. Chairman, I am opposed to this legislation for both 
process and policy reasons.
  On process, the rule for this bill has shut out those who will be 
most affected by the bill: those Members who represent American textile 
workers.
  We have denied the textile caucus the ability and the opportunity to 
fix this bill and protect those jobs, and for that reason alone, we 
should oppose this bill.
  However, my opposition to this legislation goes beyond process. This 
bill will create a ``free trade'' area in Africa.
  Mr. Speaker, I don't care if it is Africa or Pluto, we don't need any 
more ``free trade'' areas like those created by NAFTA because NAFTA is 
a job losing failure.
  In 1993, before NAFTA, the U.S. ran a trade surplus with Mexico of 
$1.7 billion. In 1996, the U.S. trade deficit with Mexico was more than 
$16 billion.
  By my calculations, we are already running a trade deficit of $9 
billion with sub-Saharan Africa. This legislation will only make that 
worse.
  Officially, Pennsylvania has lost more than 13,000 jobs because of 
NAFTA, and those are Labor Department NAFTA-TAA numbers. Actual losses 
are probably higher, and the economic policy institute estimates that 
Pennsylvania has lost almost 20,000 jobs due to increased trade 
deficits with NAFTA countries.
  Nationwide, the official NAFTA-TAA job losses are almost 141,000. 
Other estimates are much higher than that: some say 625,000.
  Another ``free trade'' area, in Africa or anywhere else, will only 
mean most lost jobs, and this particular ``free trade'' bill will mean 
lost jobs for textile workers.
  Another ``free trade'' area will only give big multinational 
corporations another platform from which to use lower cost labor, 
weaker environmental regulations and minimal protections for worker or 
human rights, to ship cheaper goods to the United States, just like 
they are using Mexico as a platform. That will only mean more jobs 
lost.
  Mr. Speaker, we have tried the ``free trade'' model and it has 
failed. We need to look for a new trade model that recognizes human 
rights, democracy, worker safety and health. That trade model would 
benefit all the people of the world, Americans, Mexicans, and Africans, 
not just big corporations.
  I urge my colleagues to oppose this job loss legislation.
  Mr. HAMILTON. Mr. Chairman, I rise in support of H.R. 1432.
  This bill is an innovative measure that holds considerable promise 
for Africa and for U.S. relations with African nations.
  Several of our colleagues deserve credit for bringing this important 
measure before us today. I would like to commend the principal authors 
of this bill--Congressmen Crane, McDermott, and Rangel. Other members 
of the African Trade and Investment Caucus and of the Ways and Means 
Committee also made important contributions to this bill. I would also 
like to commend several members of the International Relations 
Committee--Congressmen Royce and Menendez, and our Chairman, Mr. 
Gilman--for starting this bill on its way last June.


                           what the bill does

  H.R. 1432 will alter the U.S. economic relationship with Africa.
  To African countries that are prepared for it, the bill offers a new 
economic compact: In exchange for economic reforms necessary to benefit 
from expanded commercial ties, H.R. 1432 would offer increased U.S. 
trade and investment.
  This compact will not only reward reforms that have already been 
implemented: It will serve as an incentive for reforms elsewhere. And 
by strengthening commercial ties between the United States and Africa, 
this bill will not only benefit Africans: It will also help build new 
U.S. export markets, boosting our own economy.
  The bill has several key components:
  First, the bill restricts eligibility to African countries that are 
not committing human rights abuses and are progressing toward market-
based economies.
  Second, eligible countries would be invited to participate in a U.S.-
sponsored annual meeting aimed at promoting trade and investment. The 
United States would be represented at these meetings by the Secretaries 
of Commerce and Treasury and by the U.S. Trade Representative. The 
President would also be required to convene a summit meeting of African 
heads of state every two years.
  Third, the bill would require the President to develop a strategy for 
negotiating free trade agreements between the United States and African 
countries.
  Fourth, the bill will eliminate U.S. quotas on imports of textiles--
an important industry in the developing world--from each African 
country that the President determines has in place an effective system 
for preventing the violation of U.S. import laws.
  Fifth, the bill gives the President authority to extend tariff-free 
treatment under the Generalized System of Preferences program to 
additional imports from Africa, as long as those imports pose no threat 
to domestic industries.
  Sixth, the bill directs the U.S. Oversees Private Investment 
Corporation to establish two new investment-promotion funds for Africa, 
and to expand its regular programs in Africa. The bill also directs the 
Export-Import Bank to expand its export-promotion programs in Africa, 
and it requires both OPIC and the Eximbank to establish new advisory 
committees on Africa.
  Finally, the bill creates a new Assistant U.S. Trade Representative 
for Africa, and it urges an increase in the number of U.S. Commercial 
officers stationed there.
  Taken together, these measures will create a more intensive and 
mutually beneficial economic relationship between the United States and 
Africa.
  A stronger economic relationship will serve other U.S. interests in 
Africa.

[[Page H1056]]

  By helping move African nations and the United States away from 
donor-recipient relationships, and toward economic partnership, the 
bill will strengthen bilateral political ties.
  By promoting growth, the bill will bolster political stability and 
give African nations the wherewithal to address environmental crime, 
health, and other problems of mutual concern.


                             aid vs. trade

  Mr. Chairman, the premise of this bill--which I support--is that 
increased trade and investment can promote economic growth in Africa in 
ways that aid alone cannot.
  We need to do more to promote trade and investment in Africa because 
foreign assistance budgets are declining worldwide, and because a 
number of African countries have taken the tough steps necessary to 
benefit from expanding commercial ties.
  But many other African countries are not yet ready to graduate from 
aid recipient to trading partner. The poorest countries in Africa still 
need substantial foreign assistance and debt relief to accomplish 
things that increased trade and investment will not address: Relieving 
hunger and satisfying other basic needs; developing the human and 
physical capital necessary for an industrial economy; building 
democratic political institutions; and strengthening indigenous 
conflict-resolution capabilities.
  H.R. 1432 does not diminish U.S. foreign assistance programs. In 
fact, two of the bill's provisions strengthen our programs:
  Our provision gives the President additional flexibility to shift 
funds among different African aid priorities.
  Another provision urges the President to push for ``deep debt 
reduction'' for the poorest countries.
  But, regrettably, Congress has already diminished the effectiveness 
of our foreign assistance program in Africa by cutting spending too 
far. Appropriations for the Development Fund for Africa were cut from 
$802 million in fiscal year 1995 to roughly $665 million in fiscal year 
1996. The 1998 figure is $700 million, still $100 million below where 
we were in 1995.
  As we begin with H.R. 1432 to build new commercial relationships with 
African countries, I hope we will not lose sight of the continuing, 
critical importance of aid in Africa. As we seek to expand trade and 
investment with some African nations, we should rededicate ourselves to 
strengthening aid programs that can help all Africans participate more 
fully in the world economy.
  Mr. HALL of Ohio. Mr. Chairman, I am proud to be an original co-
sponsor of this bill, and I want to extend a hearty congratulations to 
my colleagues Mr. Crane, Mr. Rangel, and Mr. McDermott in particular 
for their tremendous achievement in bringing this landmark piece of 
legislation to fruition. It could not have happened without their 
vision and tireless leadership in championing a new era in U.S.-Africa 
relations.
  The bill establishes a new U.S. trade and investment policy toward 
Africa. While I am a strong believer in the potential benefits of free 
trade and open markets, I was initially skeptical that this bill sought 
to prematurely substitute such reforms for direct human and social 
development and poverty alleviation goals on the continent.
  The fact is, Africa sorely needs both. Increased trade and investment 
are critically important to the successful integration of African 
countries into the global economy, and this bill takes us in the right 
direction in that regard. If carefully implemented, it may help reduce 
poverty in Africa in the long run. But it is not an overnight fix for 
Africa's formidable human development challenges and pressing 
humanitarian needs.
  That reality is recognized in the bill's policy language recognizing 
the vital supporting role of sustainable development, grassroots 
initiatives, conflict resolution, and debt relief in helping trade an 
investment initiatives to succeed. We ignore Africa's massive food 
security concerns, in particular, at our own peril; trade and 
investment cannot thrive in a region where USDA predicts that left 
unaddressed, two-thirds of Africa's people will be malnourished by the 
year 2010. In that light, I would have liked to see the bill call for 
an increased investment of foreign assistance funds in such programs, 
to reverse steep cuts of recent years.
  As it is, I am pleased that my proposed language is retained in the 
bill, which protects and exempts essential humanitarian and development 
programs from being shifted to other purposes. I supported the bill on 
the condition that child survival activities, immunization programs, 
health and nutrition programs, HIV/AIDS funding, basic education, and 
support for UNICEF would be expressly protected from the bill's waiver 
authority. Those programs that are directly saving and improving lives 
every day should not be sacrificed to other goals, however important, 
in fact such funding should be increased.
  This bill, and the policy direction it sets, would be strongly 
enhanced and complemented by a future Africa assistance package that 
more directly targets African farmers and struggling rural communities, 
and provides more adequate levels of support for investments in basic 
health, nutrition, and education programs. Those investments will 
vastly increase this bill's prospects for making a real dent in poverty 
and hunger in Africa. I urge my colleagues to support the bill, and to 
lend similar support in the future to enhanced development and 
humanitarian assistance funding for Africa when this year's foreign aid 
bill is formulated.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the committee amendment in the nature of a 
substitute printed in the bill, modified by the amendments printed in 
Part I of House Report 105-431, is considered as an original bill 
for the purpose of amendment and is considered as read.

  The text of the committee amendment in the nature of a substitute, as 
modified, is as follows:
       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 market-led economic growth in, and 
     thereby the social and economic development of, the countries 
     of sub-Saharan Africa. In particular, the United States seeks 
     to assist sub-Saharan African countries, and the private 
     sector in those 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 if the 
     President determines that the country does not engage in 
     gross violations of internationally recognized human rights 
     and 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 between 
     the United States and sub-Saharan Africa and among countries 
     in 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 
     foreign investors;
       (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) appropriate fiscal systems, 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 create an environment conducive to domestic and foreign 
     investment;
       (7) supporting the growth of regional markets within a free 
     trade area framework;
       (8) governance issues, such as eliminating government 
     corruption, minimizing government intervention in the market 
     such as price controls and subsidies, and streamlining the 
     business license process;
       (9) supporting the growth of the private sector, in 
     particular by promoting the emergence of a new generation of 
     African entrepreneurs;
       (10) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs;
       (11) removing restrictions on investment; and

[[Page H1057]]

       (12) observing the rule of law, including equal protection 
     under the law and the right to due process and a fair trial.
       (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
       (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) Where applicable, the extent to which such country is 
     in material compliance with its obligations to the 
     International Monetary Fund and other international financial 
     institutions.
       (5) The extent to which such country has a recognizable 
     commitment to reducing poverty, providing 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.
       (6) Whether or not such country engages in activities that 
     undermine United States national security or foreign policy 
     interests.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of sub-
     Saharan African countries in order to determine their current 
     or potential eligibility under subsection (a). Such 
     determinations shall be based on quantitative factors to the 
     fullest extent possible and shall be included in the annual 
     report required by section 15.
       (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.
       (d) Violations of Human Rights and Ineligible Countries.--
     It is the sense of the Congress that a sub-Saharan African 
     country should not be eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act if the government of that country is 
     determined by the President to engage in a consistent pattern 
     of gross violations of internationally recognized human 
     rights.

     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, subject to the notification procedures under 
     section 634A, that the waiver of such provision of law would 
     provide improved conditions for the people of Africa. The 
     President shall notify the appropriate congressional 
     committees, in accordance with the procedures applicable to 
     reprogramming notifications under section 634A of this Act, 
     at least 15 days before any determination under this 
     paragraph takes effect.
       ``(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

[[Page H1058]]

     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) Dissemination of Information by USIA.--In order to 
     assist in carrying out the purposes of the Forum, the United 
     States Information Agency shall disseminate regularly, 
     through multiple media, economic information in support of 
     the free market economic reforms described in this Act.
       (e) 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 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.''.
       (d) 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).''.
       (e) 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.''.

[[Page H1059]]

     SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) Better Mechanisms To Further Goals for Sub-Saharan 
     Africa.--It is the sense of the Congress that the Secretary 
     of the Treasury should instruct the United States Executive 
     Directors of the International Bank for Reconstruction and 
     Development, the International Monetary Fund, and the African 
     Development Bank to use the voice and votes of the Executive 
     Directors to encourage vigorously their respective 
     institutions to develop enhanced mechanisms which further the 
     following goals in eligible countries in sub-Saharan Africa:
       (1) Strengthening and expanding the private sector, 
     especially among women-owned businesses.
       (2) Reducing tariffs, nontariff barriers, and other trade 
     obstacles, and increasing economic integration.
       (3) Supporting countries committed to accountable 
     government, economic reform, the eradication of poverty, and 
     the building of civil societies.
       (4) Supporting deep debt reduction at the earliest possible 
     date with the greatest amount of relief for eligible poorest 
     countries under the ``Heavily Indebted Poor Countries'' 
     (HIPC) debt initiative.
       (b) Sense of Congress.--It is the sense of the Congress 
     that relief provided to countries in sub-Saharan Africa which 
     qualify for the Heavily Indebted Poor Countries debt 
     initiative should primarily be made through grants rather 
     than through extended-term debt, and that interim relief or 
     interim financing should be provided for eligible countries 
     that establish a strong record of macroeconomic reform.
       (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) Advisory committee.--Section 233 of the Foreign 
     Assistance Act of 1961 is amended by adding at the end the 
     following:
       ``(e) Advisory Committee.--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 with respect to sub-Saharan Africa. In addition, 
     the advisory committee 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. The advisory committee shall terminate 
     4 years after the date of the enactment of this 
     subsection.''.
       (2) 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) Advisory committee for sub-saharan africa.--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 the enactment of this subparagraph.''.
       (2) 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 of the United States shall submit to the 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. 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) subject to 
     the availability of appropriations.

     SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN 
                   COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that the United States and Foreign Commercial Service should 
     expand its presence in sub-Saharan Africa by increasing the 
     number of posts and the number of personnel it allocates to 
     sub-Saharan Africa.
       (b) Reporting Requirement.--Not later than 120 days after 
     the date of the enactment of this Act, the Secretary of 
     Commerce, in consultation with the Secretary of State, should 
     report to the Congress on the feasibility of expanding the 
     presence in sub-Saharan Africa of the United States and 
     Foreign Commercial Service.

     SEC. 15. 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. 16. 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)
       Democratic Republic of Congo
       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)

[[Page H1060]]

       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 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)

     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 market-led economic growth in, and 
     thereby the social and economic development of, the countries 
     of sub-Saharan Africa. In particular, the United States seeks 
     to assist sub-Saharan African countries, and the private 
     sector in those 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 if the 
     President determines that the country does not engage in 
     gross violations of internationally recognized human rights 
     and 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 between 
     the United States and sub-Saharan Africa and among countries 
     in 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 
     foreign investors;
       (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) appropriate fiscal systems, 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 create an environment conducive to domestic and foreign 
     investment;
       (7) supporting the growth of regional markets within a free 
     trade area framework;
       (8) governance issues, such as eliminating government 
     corruption, minimizing government intervention in the market 
     such as price controls and subsidies, and streamlining the 
     business license process;
       (9) supporting the growth of the private sector, in 
     particular by promoting the emergence of a new generation of 
     African entrepreneurs;
       (10) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs;
       (11) removing restrictions on investment; and
       (12) observing the rule of law, including equal protection 
     under the law and the right to due process and a fair trial.
       (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
       (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) Where applicable, the extent to which such country is 
     in material compliance with its obligations to the 
     International Monetary Fund and other international financial 
     institutions.
       (5) The extent to which such country has a recognizable 
     commitment to reducing poverty, increasing the availability 
     of health care and educational opportunities, 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, and promoting and enabling the formation of 
     capital to support the establishment and operation of micro-
     enterprises.
       (6) Whether or not such country engages in activities that 
     undermine United States national security or foreign policy 
     interests.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of sub-
     Saharan African countries in order to determine their current 
     or potential eligibility under subsection (a). Such 
     determinations shall be based on quantitative factors to the 
     fullest extent possible and shall be included in the annual 
     report required by section 15.
       (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.
       (d) Violations of Human Rights and Ineligible Countries.--
     It is the sense of the Congress that a sub-Saharan African 
     country should not be eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act if the government of that country is 
     determined by the President to engage in a consistent pattern 
     of gross violations of internationally recognized human 
     rights.

     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.

[[Page H1061]]

       (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)''.

     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) Dissemination of Information by USIA.--In order to 
     assist in carrying out the purposes of the Forum, the United 
     States Information Agency shall disseminate regularly, 
     through multiple media, economic information in support of 
     the free market economic reforms described in this Act.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
       (f) Limitation on Use of Funds.--None of the funds 
     authorized under this section may be used to create or 
     support any nongovernmental organization for the purpose of 
     expanding or facilitating trade between the United States and 
     sub-Saharan Africa.

     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 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

[[Page H1062]]

     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 an 
     efficient visa system to guard against unlawful transshipment 
     of textile and apparel goods and the use of counterfeit 
     documents; and
       (B) from Mauritius within 30 days after that country adopts 
     such a visa system.

     The Customs Service shall provide the necessary technical 
     assistance to Kenya and Mauritius in the development and 
     implementation of those visa systems.
       (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.
       (d) Customs Procedures and Enforcement.--
       (1) Actions by countries against transshipment and 
     circumvention.--The President should ensure that any country 
     in sub-Saharan Africa that intends to export textile and 
     apparel goods to the United States--
       (A) has in place a functioning and effective visa system 
     and domestic laws and enforcement procedures to guard against 
     unlawful transshipment of textile and apparel goods and the 
     use of counterfeit documents; and
       (B) will cooperate fully with the United States to address 
     and take action necessary to prevent circumvention, as 
     provided in Article 5 of the Agreement on Textiles and 
     Clothing.
       (2) Penalties against exporters.--If the President 
     determines, based on sufficient evidence, that an exporter 
     has willfully falsified information regarding the country of 
     origin, manufacture, processing, or assembly of a textile or 
     apparel article for which duty-free treatment under section 
     503(a)(1)(C) of the Trade Act of 1974 is claimed, then the 
     President shall deny to such exporter, and any successors of 
     such exporter, for a period of 2 years, duty-free treatment 
     under such section for textile and apparel articles.
       (3) Applicability of united states laws and procedures.--
     All provisions of the laws, regulations, and procedures of 
     the United States relating to the denial of entry of articles 
     or penalties against individuals or entities for engaging in 
     illegal transshipment, fraud, or other violations of the 
     customs laws shall apply to imports from Sub-Saharan 
     countries.
       (4) Monitoring and reports to congress.--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 the visa systems described 
     in subsection (c)(1) and paragraph (1) of this subsection and 
     on measures taken by countries in Sub-Saharan Africa which 
     export textiles or apparel to the United States to prevent 
     circumvention as described in Article 5 of the Agreement on 
     Textiles and Clothing.
       (e) 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)(1)) 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.''.
       (d) 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 June 30, 2008, 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 June 30, 1998, 
     with respect to beneficiary developing countries other than 
     those provided for in subsection (a).''.
       (e) 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' mean a country or countries 
     that the President has determined to be eligible under 
     section 4 of the African Growth and Opportunity Act.''.
       (f) Effective Date.--The amendments made by this section 
     take effect on July 1, 1998.

     SEC. 10. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) Better Mechanisms To Further Goals for Sub-Saharan 
     Africa.--It is the sense of the Congress that the Secretary 
     of the Treasury should instruct the United States Executive 
     Directors of the International Bank for Reconstruction and 
     Development, the International Monetary Fund, and the African 
     Development Bank to use the voice and votes of the Executive 
     Directors to encourage vigorously their respective 
     institutions to develop enhanced mechanisms which further the 
     following goals in eligible countries in sub-Saharan Africa:
       (1) Strengthening and expanding the private sector, 
     especially among women-owned businesses.
       (2) Reducing tariffs, nontariff barriers, and other trade 
     obstacles, and increasing economic integration.
       (3) Supporting countries committed to accountable 
     government, economic reform, the eradication of poverty, and 
     the building of civil societies.
       (4) Supporting deep debt reduction at the earliest possible 
     date with the greatest amount of relief for eligible poorest 
     countries under the ``Heavily Indebted Poor Countries'' 
     (HIPC) debt initiative.
       (b) Sense of Congress.--It is the sense of the Congress 
     that relief provided to countries in sub-Saharan Africa which 
     qualify for the Heavily Indebted Poor Countries debt 
     initiative should primarily be made through grants rather 
     than through extended-term debt, and that interim relief or 
     interim financing should be provided for eligible countries 
     that establish a strong record of macroeconomic reform.
       (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.

[[Page H1063]]

       (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) Advisory committee.--Section 233 of the Foreign 
     Assistance Act of 1961 is amended by adding at the end the 
     following:
       ``(e) Advisory Committee.--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 with respect to sub-Saharan Africa. In addition, 
     the advisory committee 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. The advisory committee shall terminate 4 
     years after the date of the enactment of this subsection.''.
       (2) 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 (as added by paragraph (1)) and any recommendations of 
     the advisory board established pursuant to such section.
       (b) Export-Import Bank.--
       (1) Advisory committee for sub-saharan africa.--Section 
     2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) 
     is amended by inserting after paragraph (12) the following:
       ``(13)(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 the enactment of this subparagraph.''.
       (2) 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 of the United States shall submit to the Congress 
     a report on the steps that the Board has taken to implement 
     section 2(b)(13)(B) of the Export-Import Bank Act of 1945 (as 
     added by paragraph (1)) and any recommendations of the 
     advisory committee 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 subsection (a) has adequate funding and staff to 
     carry out the duties described in subsection (a).

     SEC. 14. EXPANSION OF THE UNITED STATES AND FOREIGN 
                   COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that the United States and Foreign Commercial Service should 
     expand its presence in sub-Saharan Africa by increasing the 
     number of posts and the number of personnel it allocates to 
     sub-Saharan Africa.
       (b) Reporting Requirement.--Not later than 120 days after 
     the date of the enactment of this Act, the Secretary of 
     Commerce, in consultation with the Secretary of State, should 
     report to the Congress on the feasibility of expanding the 
     presence in sub-Saharan Africa of the United States and 
     Foreign Commercial Service.

     SEC. 15. 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. 16. 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)
       Democratic Republic of Congo
       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 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)

     SEC. 17. CLARIFICATION OF DEDUCTION FOR SEVERANCE PAY.

       (a) In General.--Section 404(a) of the Internal Revenue 
     Code of 1986 (relating to deduction for contributions of an 
     employer to an employee's trust or annuity plan and 
     compensation under a deferred-payment plan) is amended by 
     adding at the end the following new paragraph:
       ``(11) Determinations relating to severance pay.--For 
     purposes of determining under this section--
       ``(A) whether severance pay is deferred compensation, and
       ``(B) when severance pay is paid,
     no amount shall be treated as received by the employee, or 
     paid, until it is actually received by the employee.''
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to taxable years ending after October 8, 1997.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendment made by subsection (a) to

[[Page H1064]]

     change its method of accounting for its first taxable year 
     ending after October 8, 1997--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account in 
     such first taxable year.
  The CHAIRMAN. No amendment to the committee amendment in the nature 
of a substitute will be in order except those printed in Part II of 
House Report 105-431. Each amendment may be offered only in the order 
printed in the report, may be offered only by a Member designated in 
the report, shall be considered as read, debatable for the time 
specified in the report, equally divided and controlled by the 
proponent and an opponent, and shall not be subject to amendment.
  The Chairman of the Committee of the Whole may postpone a request for 
a recorded vote on any amendment and may reduce to a minimum of 5 
minutes the time for voting on any postponed question that immediately 
follows another vote, provided that the time for voting on the first 
question shall be a minimum of 15 minutes.

                              {time}  1430

  It is now in order to consider amendment No. 1 printed in Part II of 
House Report 105-431.


       Amendment No. 1 Offered by Mrs. Linda Smith of Washington

  Mrs. LINDA SMITH of Washington. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mrs. Linda Smith of Washington:
       In subsection (b) of section 4 (Eligibility Requirements), 
     redesignate paragraph (6) as paragraph (7) and insert after 
     paragraph (5) the following:
       (6) Whether or not such country is cooperating with the 
     United States in efforts to eliminate slavery in Africa.

  The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from 
Washington (Mrs. Linda Smith) and a Member opposed, each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Washington (Mrs. Linda 
Smith).
  Mrs. LINDA SMITH of Washington. Mr. Chairman, I yield myself such 
time as I may consume.
  I would first like to thank the gentleman from Illinois (Mr. Crane) 
for his consideration of this amendment which is also cosponsored by 
the gentleman from New Jersey (Mr. Payne) and the gentleman from 
Virginia (Mr. Wolf).
  The Africa Growth and Opportunity Act already has in place specific 
eligibility requirements, and I am encouraged that certain protections 
for human rights are involved and in place in the bill. However, one 
condition is missing: ensuring the freedom of African people who are 
daily threatened by slavery.
  Today is March 11, 1998. Today, in America, we breathe freedom, but 
today, right now today in Africa, innocent men, women and children are 
violently pulled from their families by Arab slave raiders. One 
Sudanese woman witnessed all five of her children, late last year, tied 
to horses and screaming as they were taken away.
  Today, this amendment sends a strong message from this Congress that 
we will not turn a blind eye to this grieving mother or to these 
people. The value and dignity of all people in all nations will be 
honored and protected.
  Trade recognizes the value and worth of another nation's economy, an 
economy built and sustained by the sweat and toil of its citizens. To 
advance trade without advancing the rights of a nation's citizens 
rejects the principles of liberty and justice.
  Let us resolve today, by passing this amendment, that human rights 
and trade are bound together and can advance the global cause of 
freedom. We must not veil freedom's light with the shadow of slavery.
  Mr. Chairman, I reserve the balance of my time.
  Mr. ROYCE. Mr. Chairman, I am not opposed to the amendment, and I do 
not see any Member seeking to oppose the amendment. I ask unanimous 
consent to control the time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California?
  There was no objection.
  The CHAIRMAN. The gentleman from California (Mr. Royce) is recognized 
for 5 minutes.
  Mr. ROYCE. Mr. Chairman, I support this amendment, and I yield to the 
gentlewoman from Washington (Mrs. Linda Smith).
  Mrs. LINDA SMITH of Washington. Mr. Chairman, there seems to be no 
problem with this amendment. Our State Department has said that there 
is a problem with slavery, and they have also stated we cannot allow 
countries to continue this practice.
  I would also like to submit for the Record an article from the 
Chicago Tribune which illustrates how important this amendment is.

               [From the Chicago Tribune, Feb. 22, 1998]

  Trafficking In Humans; Fed By A 14-Year-Old Civil War, Slave Trade 
                            Thrives In Sudan

                           (By Karin Davies)

       Madhol, Sudan.--Stacks of money pass from the Christian 
     foreigner to the Muslim trader, an exchange anxiously watched 
     by a 13-year-old girl with diamonds of sweat on her brow.
       The Sudanese trader, his lap buried by currency worth 
     $13,200, waves carelessly to free his merchandise--132 
     slaves.
       Akuac Malong, the young Dinka girl, is among them. She has 
     spent seven years--more than half her life--enslaved by an 
     Arab in northern Sudan.
       Her brilliant smile belies the beatings, near-starvation, 
     mutilation and attempted brainwashing she endured. ``I 
     thought it would be better to die than to reman a slave,'' 
     Akuac says.
       Trafficking in humans has resurged with civil war in 
     Africa's largest and poorest country, said John Eibner of 
     Christian Solidarity International, a humanitarian group that 
     brought Akuac's freedom.
       For all but a decade since Sudan's independence in 1956, 
     southern rebels, mainly black Christians and followers of 
     tribal religions, have fought for autonomy from the national 
     government in Khartoum, which is dominated by northern Arabs. 
     The southerners believe the north is trying to impose Islam 
     and the Arabic language and to monopolize Sudan's wealth.
       Since the rebellion resumed 14 years ago, fighting, famine 
     and disease have killed an estimated 1.5 million Sudanese--
     more than died in the genocides and civil wars in Rwanda or 
     Bosnia. More than 3 million people have fled or been forced 
     from their homes.
       Much of the fighting on the government side is done by 
     local militias. Unpaid, their bounty is as old as war 
     itself--slaves. Sudan's radical Islamic leaders encourage 
     soldiers to take slaves as their compensation, according 
     United Nations investigators and the U.S. State Department.
       Young women and children are the most valuable war booty. 
     Eibner said old people are beaten and robbed while young men 
     are killed because they cannot be trained into useful, 
     harmless slaves.
       ``According to the Khartoum's regime ideology of jihad, 
     members of this resistant black African community--be they 
     men, women or children--are infidels, and may be arbitrarily 
     killed, enslaved, looted or otherwise abused,'' Eibner said.
       The Sudanese government denies condoning slavery, insisting 
     the practice persists because holding prisoners for ransom is 
     a tradition rooted in tribal disputes.
       No side has a claim on morality in this war. The rebel 
     Sudan People's Liberation Army has been accused of forcibly 
     inducting teenage boys into its ragtag army. But the southern 
     blacks do not take Arab prisoners for slaves.
       Paul Malong Awan, a regional rebel commander, said 
     enslavement is a government tactic to weaken the morale and 
     military might of the south.
       Many of the blacks taken away are Dinkas, a million-member 
     tribe that is the biggest ethnic group in southern Sudan. 
     Dinkas are vulnerable because they predominate in northern 
     Bahr el Ghazal, a region that is close to the front between 
     north and south.
       Christian Solidarity International estimates tens of 
     thousands of black slaves are owned by Arabs in northern 
     Sudan. The Swiss-based charity has made more than a dozen 
     risky, clandestine bush flights to southern Sudan to redeem 
     800 slaves since 1995, most recently in Madhol, 720 miles 
     southwest of Khartoum.
       Some criticize its work.
       Alex de Waal, of the London-based group African Rights, 
     said that by paying large sums to free slaves, the Swiss 
     charity undercuts Dinkas living in the north who do the same 
     secretive work for a fraction of the cost.
       Eibner countered: ``There is no evidence to suggest that 
     our work has undermined efforts to redeem abducted women and 
     children. In fact, Dinka elders encourage us to press ahead 
     with our activities.''
       Gaspar Biro, a researcher for the UN Commission on Human 
     Rights for Sudan, has cited ``an alarming increase'' in 
     ``cases of slavery, servitude, slave trade and forced labor'' 
     since February 1994.
       ``The total passivity of the government can only be 
     regarded as tacit political approval

[[Page H1065]]

     and support of the institution of slavery,'' he said.
       A U.S. State Department report said accounts it received on 
     the taking of slaves in the south ``indicates the direct and 
     general involvement'' of Sudan's army and militias ``backed 
     by the government.''
       The centuries-old tensions between Arabs and blacks in 
     Sudan are linked to slaving expeditions by Arabs to the upper 
     Nile, a trade that the 19th Century explorer David 
     Livingstone called ``an open sore on the world.''
       Akuac's mother, Abuong Malong, sobs when she sees her 
     daughter for the first time in seven years. ``It's like she's 
     been born again.''
       She recognizes her only from her straight, square teeth. 
     ``She was very small when she was taken, her features have 
     changed, but she came back with the same spirit.''
       Recalling that traumatic day, Abuong Malong says they were 
     fetching water when Arab militiamen on camels and horses 
     thundered into their village, Rumalong. The raiders began 
     shooting at the clusters of mud and wattle huts and rounding 
     up cows and goats.
       ``I was running with Akuac for the trees when a horseman 
     grabbed her,'' Abuong Malong says. ``I was afraid that if I 
     chased the horseman, he would kill me.''
       Akuac and her older brother were tied to horsebacks and 
     taken north with more than a dozen others from their village, 
     a short walk southeast of Madhol. The women and older 
     children had to carry the booty of their captors.
       In Kordofan, Akuac was sold to an Arab who made her wash 
     clothes, haul water, gather firewood and help with cooking.
       She survived on table scraps, and slept in the kitchen.
       ``I was badly treated,'' Akuac says.
       Her master also tried to make her a Muslim--taking her to 
     mosque and giving her the Arabic name of Fatima.
       But Akuac says she maintained her Christian faith, praying 
     and singing hymns in secret and never forgetting her true 
     name. ``My name is my name and nobody can change that.''
       She does bear scars--in the local Muslim tradition, she was 
     forcibly circumcised with her master's daughters when she was 
     11.
       ``It was very brutal. It is strange to our culture,'' Akuac 
     says. ``The master told me, `If I don't circumcise you, I 
     will have to kill you because you will still hold the ideas 
     of your people, and you will try to escape.' ''
       Her heart is scarred, too. Her older brother, Makol, was 
     killed two years ago at age 13 while trying to escape.
       Another returnee, Akec Kwol Kiir, who is in her 40s, says 
     she was repeatedly raped by four soldiers who took her north. 
     She ended up in a camp where slaves were bought and sold. 
     ``They treated us like cattle,'' she says.
       Her Arab master insisted that she, too, be circumcised. She 
     refused, and was brutally slashed. Her ear is notched and her 
     chin and neck scarred.
       Kwol finally submitted. ``Otherwise, they would have killed 
     me. Because I was a slave, they had the right to do whatever 
     they wanted to me,'' she says.
       Akuac and Kwol have been brought back to Madhol along with 
     130 other former slaves by a trader who calls himself Ahmed 
     el-Noor Bashir.
       Slipping into a cowhide-strung chair beneath a shade tree, 
     the 27-year-old dressed in a fine white cotton robe and a 
     close-fitting embroidered cap denies he rescues slaves for 
     the money.
       ``To others it may seem 6.6 million Sudanese pounds 
     ($13,200) is a lot of money. But how can you put a price on 
     human life? I do it for humanitarian reasons, not for the 
     money,'' he says.
       ``My father is Arab but my mother is Dinka. When I see my 
     mother's people are suffering, I must do something.''
       But many families among the Dinka, particularly those who 
     also lose cattle and crops to raiders, cannot afford Bashir's 
     price--five cows or the equivalent of $100 in cash for each 
     slave returned.
       He says he rescues slaves by buying some from owners, takes 
     others from wives jealous of their husbands' concubines, and 
     protects escapees who seek him out.
       Though Bashir insists he loses money, he flaunts the 
     Sudanese signs of wealth--on his feet are tasseled, leather 
     loafers, on his wrist a Casio watch, in his hand a shortwave 
     radio.
       Eibner says he doesn't begrudge the trader his money. ``If 
     this man is caught, he's a dead man.''
       For that reason, the slave caravan traveled only by the 
     light of a melon slice of moon to reach Madhol.
       The three-night walk wearied the 132 freed women and 
     children. Infants of Arab fathers were carried on their raped 
     mother's backs.
       Years of abuse are written in bruises and scars on their 
     long, dust-caked limbs. Some wear tattered rags; others are 
     naked.
       Yet Akuac's joy at freedom beams from her animated face and 
     chocolately eyes. She sings a song of praise for the Sudan 
     People's Liberation Army and dances with family and friends 
     to the twangs of a homemade, stringed rababa.
       The first Sunday after her release. Akuac worships beneath 
     a tree with a crucifix nailed to the trunk. Roman Catholic 
     hymns are sung to the beat of drums and the mewling of 
     infants.
       On Monday, she goes to school--but is clearly bewildered as 
     other children practice writing letters in the dirt with 
     sticks and add up four-digit figures.
       ``I'll have to catch up,'' she says.

  Mr. ROYCE. Mr. Chairman, I yield back the balance of my time.
  Mrs. LINDA SMITH of Washington. Mr. Chairman, I yield back the 
balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from Washington (Mrs. Linda Smith).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 2 printed 
in part II of House Report 105-431.

                 Amendment No. 2 Offered by Ms. Waters

  Ms. WATERS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Ms. Waters:
       In subsection (a) of section 4 (Eligibility Requirements), 
     insert after paragraph (12) the following:

     A country need not meet all the requirements set forth in 
     paragraphs (1) through (12) in order to be eligible under 
     this subsection.

  The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from 
California (Ms. Waters) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentlewoman from California (Ms. Waters).
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
  I rise today to present several amendments. This is one of three 
amendments. I rise today to present these amendments in an attempt to 
answer some of the concerns that have been raised about this bill.
  I take this opportunity to say that I am deeply respectful of all who 
have spoken on the bill. I am deeply respectful of the proponents and 
the opponents of the Africa Growth and Opportunity Act. It is incumbent 
upon those of us who have identified concerns with this bill to not 
only try to make it a better bill, but to acknowledge that none of us 
are right on this bill.
  Some of us have advanced this bill as the best thing that could ever 
happen for Africa. While I wish that was true, it is not necessarily 
true. And for others, who have condemned this as the worst thing that 
could have ever happened, that is not true either.
  What we have, I think, is an attempt by those of us who care about 
Africa to try to advance something that will lead us to a trade 
agreement.
  I think all of the Members of this House who are involved in this 
legislation would like to get to the point where we can do a good trade 
bill. We differ on what the guiding policy should be to get to that 
point. Some Members think that everything in this bill is good and 
should be embraced. I am one who believes that there are some things in 
the bill that are unnecessary, that may be harmful and need to be dealt 
with. I take this opportunity to try to deal with some of this in 
amendments.
  My first amendment is a very simple amendment that says, no country 
would be forced to have to comply with all of the requirements of this 
bill. This underscores the flexibility of the President to take a look 
at countries and make some determination about whether or not they are 
in compliance with some things, whether or not they are working toward 
compliance, whether or not they are making progress, whether or not 
they are, in fact, acting in good faith despite the fact they do not 
meet all of the strict requirements. When I talked with the proponents 
of this bill, they said to me, that was the intent of the bill. I said 
to them, that was not clear. As I looked at the laundry list, I became 
concerned. I pointed out some of my concerns.
  For example, if we take a look at page 40 of the legislation, line 
20, item 5, it says, appropriate fiscal systems 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.
  I would have struck that from the bill if I had had my way. I 
attempted to do that. That amendment was not accepted. However, this 
amendment would at least give the President the opportunity to evaluate 
whether or not a country is moving in that direction, whether or not 
they should move in that direction in a strict way or whether or not 
there is some flexibility, as

[[Page H1066]]

we look as things such as controlling government consumption.
  What does that mean? For some Members, they would spend less money on 
education and health. For some Members, that would mean we would spend 
less money on the infrastructure. For some Members, that would mean 
something quite different than what I would be concerned about.
  I think that we need some flexibility to review these kinds of 
things, and for the President, who will be making some determination 
about these things, to determine exactly what is meant in this policy 
direction and to have the ability not to force anyone to have to be in 
strict compliance with every aspect of this bill as it tries to give us 
some direction for public policy.
  I do not think there should be any opposition to that. That, I am 
told, is the intent anyway. I said to those who told me that that was 
the intent that then they should have no problems with me just 
restating it in ways that are understood.
  I have talked with many of those who represent nongovernment 
organizations. I have talked with some of the proponents of the bill. I 
have talked with Members on the opposite side of the aisle; to date and 
since this amendment was placed in order in the Committee on Rules, I 
have not heard any objections. Certainly, I would ask that my 
colleagues would support me, given this kind of flexibility and 
documenting it as it was intended when the bill was constructed.
  Again, let me bring to the attention of the Members that this is not 
a bill that is perfect. As a matter of fact, there are many things that 
I would strike in the bill if I had an opportunity to. I think that if 
we have enough flexibility to at least act in good faith by supporting 
this kind of amendment, it may go a long way to getting Members who 
have some trouble with the bill to support this legislation.
  In the final analysis, I think what we all want is, we want to 
develop guiding policies. We want to give the direction. We want to 
make the flame work by which to have a treaty, by which to have an 
agreement, by which to work out with Africa ways by which we can do 
trade that respects Africa and respects the guiding principles of this 
country.
  Mr. Chairman, I reserve the balance of my time.
  Mr. ROYCE. Mr. Chairman, I rise in opposition to the amendment.
  The CHAIRMAN. The gentleman from California (Mr. Royce) is recognized 
for 10 minutes.
  Mr. ROYCE. Mr. Chairman, before I speak in opposition to the 
amendment, I yield 3 minutes to the gentleman from New Jersey (Mr. 
Payne), my colleague on the Subcommittee on Africa, who wished to speak 
on the last amendment.
  Mr. PAYNE. Mr. Chairman, let me thank the chairman of our 
subcommittee for yielding me this time.
  I arrived on the floor just as the vote was called, but as the 
Members know, the Smith-Payne amendment is the amendment that said that 
we cannot condone slavery and that anywhere this is practiced should 
certainly not be considered for this bill. I thank the House for the 
endorsement of our amendment.
  I have personally continued to address the issue of slavery 
throughout the world. I have introduced H. Con. Res. 234 which calls on 
both Sudan and Mauritania to stop all overt and covert practices of 
chattel slavery and all other forms of booty. While acknowledging the 
prolonged campaign of human rights abuses and discrimination, 
especially on women and children, the bill commends the Clinton 
administration for sanctioning Sudan and monitoring acts of Mauritania.
  Similar proof of the existence of slavery in Mauritania has been 
provided by a variety of sources, yet at our hearing in March of last 
year, Assistant Secretary Shattuck reported in the Country Report on 
Human Rights that no vestiges of slavery existed in Mauritania, even 
though 3 years prior to the report it stated that 90,000 slaves were 
repressed at the hands of the government. I just wonder how such a 
transformation could have taken place without significant reporting and 
international coverage.
  I contend that the successful abolition of slavery has not taken 
place in Mauritania and additional steps must be taken to completely 
eradicate the practice from the country. I am pleased, though, that 
this year Ambassador Shattuck testified that in its latest annual human 
rights report a system of officially sanctioned slavery in which 
government and society join to force individuals to serve masters is 
not the case; however, slavery in the form of unofficial voluntary or 
forced and involuntary servitude persists.
  Let me just move quickly to the Sudan. Sudan has been a problem for a 
long time, and I want to submit for the record these three copies of 
the Baltimore Sun report where two reporters went to Sudan and 
purchased two slaves several years ago.
  The Sudanese Government Popular Defense Force enslaved 18 women and 
children during the slave raid on four villages.

                              {time}  1445

  There is continued support from the NIF as they continue to get 
predominantly Christians and animists who live in the south and in the 
Nuba Mountains.
  I say that the fact that slavery is still existing in these countries 
is an abomination today. The ongoing abduction in northern Uganda, 
where young people are taken into armies to fight for the Liberation 
Army in the north of Uganda, the LRA, should end. And so I am glad that 
this issue has been raised in this very important bill.
  I think as this bill moves forward, as we say it, it is not a perfect 
instrument, but it is certainly giving us an opportunity to highlight 
some of the problems that occur there on the continent, and gives us an 
opportunity to work towards the elimination of some of the atrocities 
that still exist. I know this bill will go a long way into making the 
continent move, and I certainly wholeheartedly support the bill.
  Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentleman from 
Maryland (Mr. Cummings).
  Mr. CUMMINGS. Mr. Chairman, I rise in support of the amendment 
offered by the gentlewoman from California (Ms. Waters).
  Historically, small businesses, especially those owned by people of 
color and women, have not fully enjoyed the benefits of uniform trade 
agreements negotiated by the United States. I believe that the Waters 
amendment will allow small businesses, especially those found within 
inner-city communities, to gain access to the opportunities of uniform 
trade agreements.
  Mr. Chairman, I support the gentlewoman's second amendment, which 
ensures that the Development Fund of Africa will not be reduced below 
$700 million.
  Finally, I support the gentlewoman's third amendment, which will 
limit the mandate for each participating country to comply with all 
stated requirements of section 4(a).
  Ms. WATERS. Mr. Chairman, may I inquire how much time is remaining on 
this amendment?
  The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 2 
minutes remaining, and the gentleman from California (Mr. Royce) has 7 
minutes remaining.
  Ms. WATERS. Mr. Chairman, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentlewoman for 
yielding me this time, and I thank her for her leadership.
  This is an excellent amendment. I think that this helps to make this 
bill realistic in that it allows the 12 items that are being required 
to have some flexibility, while still leaving intact the very important 
requirement of human rights. This is absolutely making this bill work. 
Without it, this would be an onerous piece of legislation that might 
make it very difficult for the countries to even participate.
  Let me also add my support for her amendment dealing with the African 
Development Fund, certainly creating greater opportunities for small 
and medium-sized businesses to be engaged in this trade bill, making it 
work for inner-city America and for minority businesses throughout this 
Nation.
  Ms. WATERS. Mr. Chairman, I yield myself the balance of my time.
  I believe all that has been said is all that can be said. This is not 
a complicated amendment. What we do is simply codify the intent of the 
bill to allow for flexibility; to say that no country would have to be 
in absolute

[[Page H1067]]

strict compliance with every item that is required in the bill; that 
there could be some recognition of countries that are making every 
effort, of countries that are working in ways that are acceptable in 
forging a trade agreement with that country.
  So I would ask that my colleagues support the idea that this bill 
that we have before us today is the framework, it is the guidepost, it 
is the direction leading toward an agreement with Africa on trade. We 
want to be as fair as we can possibly be. We do not want to be overly 
harsh. We do not want to be overly punitive. We do not want to do 
anything that will interfere with their ability to really get involved 
with trade in ways that will benefit them and their people.
  I think that we do not know everything and we are not always as wise 
as we would like to be. We come up with the best ideas that we can when 
we try and forge these agreements. And recognizing that, let us allow 
for this flexibility so we do not make the kinds of mistakes that are 
not easily corrected.
  Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
  We have put a lot of time in in crafting this bill, and I understand 
what the gentlewoman is trying to accomplish here, but I want to make a 
couple of points.
  The bill does not now require compliance with each criteria, which 
represent at any rate general guidelines and are not specific in the 
sense of quantifiable percentages or levels of compliance. The criteria 
call for countries to make, as we say, and let me quote, ``continual 
progress toward establishing a market-based economy'' relative to the 
12 items listed in the bill.
  The application of the criteria have been left somewhat vague, even 
though the parameters are specific. The intention is to reward nations 
that are making progress without requiring they meet a specific target. 
However, it is expected that nations will make a good-faith effort to 
address all the concerns expressed as participation criteria.
  To delete the need to address them all says that they can do well in 
some areas and absolutely ignore others. This would be our concern. 
Would we be satisfied in seeing nations participate in this process if 
they made reforms in governance but failed to reform human rights? 
Would we find it acceptable to accept a nation that made changes in tax 
laws but refused to honor the rule of law?
  So let me explain our concerns, and that is, by waiving the need to 
deal with all the criteria, we would encourage African nations to pick 
and choose what reforms they will address, which could result in their 
failing to take advantage of potentially valuable opportunity. That is 
why I speak in opposition, Mr. Chairman.
  Ms. WATERS. Mr. Chairman, will the gentleman yield?
  Mr. ROYCE. I yield to the gentlewoman from California.
  Ms. WATERS. One of the criticisms of the NGOs about this bill is 
precisely what we are trying to cure. This amendment in no way allows 
anybody to pick and choose anything. As a matter of fact, the 
flexibility that is codified in this kind of amendment speaks to the 
responsibility of the President in negotiating the agreement, not to 
countries to pick and choose. And this bill in no way allows that to 
happen.
  The intent that the gentleman described is the intent that I have 
captured in language to satisfy the criticisms and the objections of 
some who do not wish to vote for this bill because they do not 
understand that implicit in the bill is that kind of flexibility.
  I would suggest to the gentleman that we are basically saying the 
same thing, and that if we are interested in not only helping to 
communicate this to those who have some concerns but ensuring that we 
do not have the kind of legislation that would be misread or be 
misimplemented in ways that will take all of the requirements and 
strictly review them and strictly hold them to a certain kind of 
standard, then I think there is no need to oppose this simple 
amendment.
  As a matter of fact, I really do believe that the gentleman would 
gain friends and votes by simply codifying the intent that the 
gentleman described.
  Mr. ROYCE. Mr. Chairman, reclaiming my time, I will close and respond 
by saying that I guess partly it is a question of perspective. From the 
perspective that many of us who have worked on the bill have, the bill 
itself gives that flexibility. The bill itself says, as I said, 
``continual progress towards establishing a market-based economy'' 
relative to 12 different items.
  So in our view it is general guidelines that are in the bill itself 
at this time. We have a difference of perspective, but let me just 
close at this time and thank the gentlewoman from California for 
bringing her concerns to us.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Ms. Waters).
  The question was taken; and the Chairman announced that the noes 
appeared to have it.
  Ms. WATERS. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN. Pursuant to House Resolution 383, further proceedings 
on the amendment offered by the gentlewoman from California (Ms. 
Waters) will be postponed.
  It is now in order to consider amendment No. 3 printed in part II of 
House Report 105-431.


                 Amendment No. 3 Offered by Ms. Waters

  Ms. WATERS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Ms. Waters:
       In section 5 (Additional Authorities and Increased 
     Flexibility to Provide Assistance under the Development Fund 
     For Africa), add the following at the end:
       (e) Funding Levels.--Section 497 of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2294) is amended by adding at the end 
     the following: ``Amounts to carry this chapter for each of 
     fiscal years 1999 through 2007 shall be made available at not 
     less than the amount made available for such purpose for 
     fiscal year 1998.''.

  The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from 
California (Ms. Waters) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentlewoman from California (Ms. Waters).
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, this amendment achieves an important goal of supporters 
of development assistance for Africa. This amendment sets a floor for 
appropriations of not less than the funding year levels for the crucial 
monies that have historically made up the Development Fund for Africa. 
The amount appropriated for these purposes for funding year 1998 is 
$700 million.
  This amendment achieves this goal by amending section 497 of the 
Foreign Assistance Act to specify that the amounts to carry this 
chapter for each fiscal year from 1999 to 2007 shall be at least the 
amount funded for fiscal year 1998.
  As I attempted to describe in the last amendment, we have criticisms 
that have come from many nongovernmental organizations who have spent 
years working on the question of Africa. I recognize that some of the 
work that is being done today by opponents and proponents of this bill 
is work that is new to them, and that they do not bring with them the 
same kind of historical background and perspective on Africa as some of 
the nongovernmental organizations who have spent years working on these 
kinds of questions.
  And so when I advance this amendment, I advance it because of 
concerns about what are we doing. Are we simply trying to undermine the 
support that we give to Africa with trade that will take some time to 
realize? Are we committed to the proposition that they deserve to have 
assistance and that that assistance should not in any way be eliminated 
or diminished or reduced; that we should be going forward, not only 
from the base that was established last year, but we should increase 
it? As a matter of fact, the President has an increase in his budget 
for it.
  Mr. Chairman, I would ask my colleagues for an ``aye'' vote.
  Mr. Chairman, I reserve the balance of my time.
  Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume, 
and I rise in opposition to this amendment.
  Mr. Chairman, I yield 3 minutes to the gentleman from Washington 
State (Mr. McDermott).

[[Page H1068]]

  Mr. McDERMOTT. Mr. Chairman, I must say that I rise with mixed 
feelings about this, because when I started in this process some years 
ago, it was with a concern for the fact that many people were talking 
about we had to end aid toward Africa, and I strongly oppose ending aid 
for Africa. There are many countries for whom it is an integral part of 
their ability to respond and grow and become democracies and 
participate in the other provisions of this bill. So in no way do I 
want aid to Africa to be cut at this point.
  It was really with that in mind I started to talking to the gentleman 
from Illinois (Mr. Crane). This amendment does something I think which 
is, while laudable in intent, I think not good public policy, and that 
is it sets in law an entitlement for Africa which I do not think makes 
good sense.

                              {time}  1500

  We meet here every 2 years. We vote on budgets. We go over these 
issues. And the appropriation or the authorization committee, which is 
the Committee on International Relations, sets a level for foreign aid 
and then the Committee on Appropriations considers that authorization 
and decides what is an appropriate amount. I think that that is the 
appropriate way that we ought to do that.
  I think that to say to put a number amount in here and say that that 
is how much ought to go to Africa, putting it out for 9 years into the 
future, is a little bit more crystal-balling than I think makes sense. 
I really think that the gentleman from California (Mr. Royce) has been 
a very good supporter of this bill and of this whole process of aid for 
Africa. And I do not think there is any reason to put this kind of 
thing in this bill.
  I think, if anything, it makes people unwilling to vote for it. I do 
not want to lose the support of many who are supporting aid and trade. 
I do not want to split them off and say they just want to go for trade, 
and they want to get rid of aid. I want to keep them in the tent. And I 
think that the important thing, then, is not to take this particular 
issue, and put it in this bill at this time. For that reason, I would 
have to oppose this amendment.
  Ms. WATERS. Mr. Chairman, I yield 4 minutes to the gentleman from New 
York (Mr. Owens).
  Mr. OWENS. Mr. Chairman, I rise in strong support of the amendment 
and in support of passage of this bill. This Africa Growth and 
Opportunity Act is not a fast track trade bill. It does not hand out 
great advantages to competing economies. It does not hand out 
advantages to nations that prosper by ruthlessly exploiting their own 
people. This is a slow track bill that is long overdue. This is a bill 
which places Africa on the playing field of world trade.
  Africa has not only been left behind, Africa has been left out. This 
is a comprehensive bill with many positive components, and this 
amendment suggests one of those positive components. It is not perfect 
and there are pitfalls. We must not fall into the trap of throwing away 
programs that work as we move to initiate new components. The 
development needs our continued support. Instead of allowing any 
decrease in our commitment, we should work towards expansions and 
increases.
  I cannot emphasize too much the fact that Africa has not only been 
left behind by the U.S. trade and assistance programs, it has been left 
out of any significant involvement. Africa has not enjoyed the kind of 
general recognition that we have shown to Mexico or China or Indonesia. 
No country in Africa has its hands out for a 40 to $50 billion bailout 
from the United States and International Monetary Fund. Do not cut off 
one hand to Africa while we offer it another hand.
  Levels of this kind as proposed by this amendment are often set in 
legislation without being accused of seeking entitlement status. We 
should understand the difference between principles and dogma. There 
are certain kinds of principles we want to continue to support. I 
certainly wholeheartedly support the principles established by the 
informal caucus against the fast track caucus last November. But the 
principles there need to be looked at as principle and not as dogma. 
Let us not get into the ceremony of opposing all trade bills just 
because they are trade bills.
  Africa needs to have a chance; it needs to be put on the playing 
field. If we look at the statistics, we will find that Africa, as 
opposed to China or Mexico or South Korea or Hong Kong, in a very 
sensitive area like textiles, it is way, way behind.
  Less than .6 percent allowed textiles came from Africa last year, 
while China is way up there with Mexico and they have all the 
advantages. China, which, of course, has no organized labor laws, and 
China is quite ruthless in the way they handle their trade. They have 
8.6 percent of our textile imports. Mexico has 11.5 percent. Mexico is 
right across the border. How can we compare competition between Mexico 
and the textile industries in this country versus Africa, which has 
whole oceans between us and the continents.
  Let me just point out that in sub-Saharan Africa, all the countries 
of sub-Sahara Africa and together, as I said before, have less than .6 
percent of our textile trade. The per capita income of these countries 
is way down, around $400 a year, $400 a year; while per capita income 
of Taiwan, which has 8.6 percent of the trade, is way up at $12,000 a 
year.
  If there are going to be any offsets, if Africa is going to take away 
any of the textile business from anybody, it is going to be in these 
countries that are already outside the United States and already have 
taken jobs from our textile workers. They are going to underbid these 
countries because their labor costs will be lower. They are lower than 
anybody else, and they will be competing with these countries that have 
taken trade away already.
  If we are not going to try to balance out things and take some trade 
back from Mexico and China, then at least let Africa into the game. And 
right across the board, we have a great deal to gain because Africa is 
one of the last great markets in the world. We have a billion dollars 
in exports to Africa right now. We can greatly increase that. Let us 
not be dogmatic. Let us vote for a bill which opens up the playing 
field for Africa.
  Mr. Chairman, I rise in strong support of H.R. 1432, the ``Africa 
Growth and Opportunity Act.'' H.R. 1432 would authorize a new trade and 
investment policy toward the countries of sub-Saharan Africa. It is not 
a perfect bill; however, it represents a positive, historic, 
comprehensive effort to reach out to the continent of Africa and 
enhance and share in its vast economic possibilities. Africa, the 
mother of civilization, the victim of imperialism, and the beholder of 
natural riches, is the last region virtually ignored by U.S. trade 
policy. Its acceptance into the world trade arena, spearheaded by the 
United States, is long overdue. The arguments against opening up U.S. 
trade policy to Africa pale in comparison to the economic, social, 
moral and historic reasons for supporting the bill. Unequivocally, we 
must admit Africa to the world trade playing field.
  Contrary to the argument made by opponents of the bill, H.R. 1432 
will not harm the domestic textile industry. Research has shown that 
workers in the U.S. textile industry will not be displaced by workers 
in the African textile industry. In fact, should there be any loss of 
jobs, it will occur in those countries that have already suffered a 
loss of jobs because of an expansion of trade opportunities to those 
areas. The countries most likely to be hurt by Africa's imminent 
trading status with the U.S. are those which already export the largest 
percentage of textiles to the U.S.: Mexico, China, Taiwan, and Hong 
Kong. In 1996, Mexican textile imports represented 11.57% of total 
textile imports. In addition, textile imports from China represented 
8.63% of total imports. Moreover, imports from Taiwan represented 6.31% 
of total U.S. textile imports. On the other hand, imports from sub-
Saharan Africa represent a paltry 0.67%. The point is clear: The fear 
that the African textile industry will benefit economically at the 
expense of the U.S. textile industry is unfounded. Mexico is more to 
blame for a loss of U.S. jobs in the textile industry. And no matter 
how sweet the trade deal with Africa is, the continent will not be able 
to compete fairly with our bordering neighbor, Mexico.
  Again, it must be reiterated that Sub-Saharan Africa does not have 
the capacity to compete with any industries in the U.S. No American 
workers will lose jobs as a result of this bill. In the area of 
textiles, Africa's lower wages may take business away from China or 
Mexico or Hong Kong, but not from the United States.
  H.R. 1432 deserves the support of all members and components of the 
Caring Majority. The labor community should lend their support to this 
unique piece of legislation. Expanding trade in any area, including 
Africa, has been opposed by this community because of a fear

[[Page H1069]]

that countries with weaker labor and environmental laws than the U.S. 
will undermine the availability of jobs here in the America. I want to 
make a special appeal to those who stood in solidarity with me against 
the ``fast track'' trade legislative process last fall: Africa must be 
given a chance to demonstrate its commitments to fair labor laws and to 
the development of internationally accepted environmental standards. 
China has no organized labor laws, and it is quite ruthless in its 
treatment of Chinese citizens. Yet, it is the country that is able to 
secure regularly Most-Favored-Nation trading status.

  The principles we all enunciated against ``fast track'' trade 
legislation remain sound and necessary; however, we must not allow our 
principles to degenerate into the dogma of a religion. We must not 
begin to oppose all trade opportunities blindly and ceremoniously. This 
is true especially of those trade bills applied to desperately poor 
countries in Africa and the Caribbean. Our goal is justice and a decent 
standard of living for workers and common people all over the world. At 
the hands of European and American powers, Africa has been made to 
suffer for centuries. It is important now to support opportunity in 
Africa.
  H.R. 1432 helps correct a situation where trade and assistance to 
Africa has been MIA--missing in action. I cannot emphasize too much the 
fact that Africa has not only been left behind by the U.S. trade and 
assistance programs, it has been left out of any significant 
involvement. Africa has not enjoyed the generosity we have shown to 
Mexico, China and Indonesia. No country in Africa has its hands out for 
a $40 to $50 billion bailout from the U.S. and the International 
Monetary Fund.
  It is high time for alarmists to put H.R. 1432 in its proper 
perspective. It is not a fast track trade bill which hands out great 
advantages to competing economies or to nations that prosper by 
ruthlessly exploiting their own people. It is not the billion dollar 
budget buster or bailout swindle for Africa. It is not a fat check from 
the U.S. Treasury to underwrite Africa's economic policies that will 
injure working people in America. Those benefits have already accrued 
to other countries. H.R. 1432 is a slow track bill that deserves our 
enthusiastic support. I urge my colleagues to say ``YES'' to ``growth'' 
and ``opportunity'' for Africa.
  Mr. ROYCE. Mr. Chairman, I yield 4 minutes to the gentleman from 
Alabama (Mr. Callahan), the chairman of the Subcommittee on Foreign 
Operations, Export Financing and Related Programs.
  (Mr. CALLAHAN asked and was given permission to revise and extend his 
remarks.)
  Mr. CALLAHAN. Mr. Chairman, I thank the gentleman for yielding time 
to me.
  I rise in opposition to the amendment of the gentlelady from 
California (Ms. Waters), and rise in support of the statement made by 
the gentleman from Washington. Never, to my recollection, can I ever 
find that this Congress or any other Congress in the history of this 
country has ever mandated with a floor of foreign appropriations to a 
foreign country. I think this is a very dangerous precedence to begin 
to obligate future Congresses. I think possibly it might not even pass 
the constitutional test.
  But regardless of that, we are facing this issue here today; and for 
the first time in history, what we are saying is that we are going to 
give one country, one area of the world, a floor as to the amount of 
money any Congress in the future can appropriate. And that, my 
colleagues, is absolutely wrong and certainly a precedent we do not 
want to set.
  At the request of the gentlewoman from California, among others, last 
year, they came to me, as did the President, and said, we would like to 
have $700 million for sub-Saharan Africa. We did that. We complied with 
your request then. But to obligate me or this Congress for 9 years into 
the future is something that is very, very rare and unique and 
unprecedented, as I have said.
  Let me give an example. Latin America, which is our closest neighbor 
and our greatest trade potential and ally, only gets $293 million; and 
there are efforts being made to even reduce that. So what we are 
saying, if we impose this $700 million floor on the amount of money we 
can give to any country or any nation, regardless of what activities 
are taking place at that time in the future, we are going to have to 
take money away from Latin America to do it.
  All countries of the world recognize that we have limited resources 
for foreign policy. Even the State of Israel has come to us and said, 
we recognize your problems; we recognize your limitation, and they have 
made a bold initiative to come to us and tell us they recognize our 
plight and that they are requesting that we begin to downsize our 
economic support for them.
  So in the middle of our session here, second session of this 
Congress, we are going to say to the next Congress, you guys have to do 
this. We do not care what is taking place there now. We do not care 
what the governments are doing there now. We do not care what 
insurrection is taking place. No matter what you do, here is a check 
for $700 million.
  Go back to your district, and ask your constituents if they believe 
we ought to do that. We can go back and we can justify today the $700 
million we appropriated this year because progress is being made, and 
we are assisting that nation.
  But to obligate in this forum is not only unconstitutional, as far as 
I am concerned, it certainly is unprecedented in the history of the 
country to do such a thing for this period of time, for such an 
extended period of time.
  Mr. OWENS. Mr. Chairman, will the gentleman yield?
  Mr. CALLAHAN. I yield briefly to the gentleman from New York.
  Mr. OWENS. Mr. Chairman, I would like the gentleman to enlighten me. 
When he said that if we have a floor like this for one country or one 
set of countries, we would have to take it from South America or 
somewhere else, do we have the same situation with respect to the 
International Monetary Fund. We are about to be asked to vote $18 
billion more into the fund. We have a lot of money in there already. 
There is a limitation on the amount of money we put in this.
  Mr. CALLAHAN. Reclaiming my time, this Congress has the ability to 
make this decision on the International Monetary Fund, but we do not 
commit to future Congresses. I mean, what if we came to the Congress, 
we said we need $3 billion for the International Monetary Fund and 
said, we are going to do it for the next 10 years.
  Mr. OWENS. Is there a ceiling on the amount we put into the 
International Monetary Fund? Do we stop somewhere?
  Mr. CALLAHAN. We are talking about floors, an unprecedented amendment 
being introduced in this House.
  I urge my colleagues to vote against it.
  Mr. OWENS. I thank the gentleman.
  Ms. WATERS. Mr. Chairman, how much time is remaining on both sides?
  The CHAIRMAN. The gentlewoman from California (Ms. Waters) has 4 
minutes remaining, and the gentleman from California (Mr. Royce) has 
3\1/2\ minutes remaining.
  Ms. WATERS. Mr. Chairman, I yield to myself such time as I may 
consume.
  Mr. Chairman, this is a very important and enlightening debate, and 
this is precisely what I wanted to happen. I wanted to hear arguments 
against a kind of real commitment to ongoing funding for Africa and 
sub-Saharan Africa. Of course, it is easy to talk about other countries 
who may be indicating that somehow they are sensitive to the problems 
of our country and they would like to do something to be helpful.
  Sub-Saharan Africa has been the stepchild of appropriations from this 
country in relationship to their needs and their numbers. While I 
appreciate what the gentleman did last year, and I hope the gentleman 
will do even better this year. I want this debate to go forward.
  I want the debate to go forward because the NGOs who have been 
pointing to the problems of this bill, pointing to the problems that we 
have, as we try to be good advocates for Africa, I wanted them to know 
that there is some of us who are committed to this fight and committed 
to this struggle, even in light of tough opposition and the kind of 
arguments that have been raised by the chairman.
  I will not yield because this is the only time that I am going to get 
to tell the Members publicly what I think about the way that Africa has 
been treated.
  Those of us who have spent years, not only trying to dismantle, get 
rid of apartheid in South Africa, but those of us who have tried to 
give support to places like Angola, where people on the other side of 
the aisle were supporting Savimbi, and a country whose resources have 
been drained because we

[[Page H1070]]

were on the wrong side of history, just as we were on the wrong side of 
history with Mobuto, countries that have been in desperate need of our 
help, yes, I want to send a signal that we are going to give ongoing 
support for them.
  So, yes, I created this debate about it. I am glad that the chairman 
rose to the challenge. I am glad that the chairman described it in some 
of the ways that he did. I think the chairman is interested in giving 
ongoing support to Africa.
  I am going to be asking him again, as many of us will be asking him 
again, to do even better, to meet the President's mark with an increase 
for Africa.
  Yes, I know this sets out and identifies an amount for a period of 
time because it puts the light on the need. It sheds the light on a 
section of this world that we have not really paid attention to.
  We can travel on all the CODELs we want to, and we can go over and 
speak to all the heads of government, and tell them how much we love 
them. But if you do not bring the resources, and you do not bring the 
money, and you do not treat them the way you treat other countries, 
your words are shallow, and they mean nothing.
  So, yes, I dare to come to this floor and challenge my colleagues to 
make a strong commitment to Africa, put it in the legislation, where we 
dare put do you not have too much government consumption, where you 
tell them to privatize, where you tell them what they will do with 
their land reforms.
  If you are bold enough to dictate to sub-Saharan Africa, how they 
should control their country and take away from them the right to 
guarantee the things that protect and secure their countries by not 
allowing investment in some sectors, then I have the audacity to tell 
you to come and put the money in the bill and guarantee it.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. The time of the gentlewoman from California (Ms. 
Waters) has expired.
  Mr. ROYCE. Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from 
Alabama (Mr. Callahan) from the Subcommittee on Foreign Operations, 
Export Financing, and Related Programs.
  Mr. CALLAHAN. Mr. Chairman, I want to say that I have great respect 
for the gentlewoman of California (Ms. Waters). But I recall about a 
year ago next month when I was trying to handle the foreign operations 
bill giving sub-Saharan Africa $700 million that I mentioned that the 
limited $293 million we sent in Latin America created a peace; that 
there was no country in this hemisphere at war.
  As I recall, the gentlewoman from California jumped my case and 
chastised me for not giving that money to Watts and not giving that 
money to poverty areas who have drug problems.
  So I just want to remind the gentlewoman from California that, while 
we gave the $700 million when we attempted to do something for our 
neighbors just to the south of us who do have the same similar problems 
of sub-Saharan Africa, she really jumped my case to the point that I 
had really no available response to what she said.

                              {time}  1515

  She also has some problems in southern California that she ought to 
be addressing. While she is addressing all of this $700 million for the 
next 9 years to Africa, why is she not protecting her own district and 
saying that we are going to have drug programs for the next 9 years? 
That, Mr. Chairman, is the response to what I have to say about this, 
to remind the gentlewoman that I cannot do one thing one year and 
another thing the next year.
  I am trying to comply with her wishes, trying to grant her the 
audience and an appearance before our committee and trying to do 
everything we can to give assistance to sub-Saharan Africa. At the same 
time, she must be fair in her debate.
  Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
  Let me close by noting that by earmarking a set level of spending for 
Africa aid, we would take away the ability of Congress to discuss and 
debate for the next decade what the level of aid spending should be. 
Earmarking a specific level of aid to Africa for 9 years also locks up 
dollars that requires the administration to go forward with a level of 
spending on Africa that might be contrary to U.S. policy at some point 
during the next 9 years.
  The administration has consistently opposed setting minimum levels 
for regional accounts, including Asia, Africa and Latin America.
  Mr. Chairman, I will conclude by making a couple of points that I 
think need to be made. It makes no sense to authorize 9 years down the 
line.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
  Mr. ROYCE. I yield to the gentlewoman from Texas.
  Ms. JACKSON-LEE of Texas. I appreciate the gentleman's perspective. 
Let me just add one point as he finishes his remarks.
  I think the distinction that we may be trying to make here is the 
fact that this has been done in a budget year, a balanced budget year, 
and the $700 million is within a balanced budget, and sub-Saharan 
Africa has been light-years behind other continents in getting funding 
for economic development. I thank the gentleman for yielding.
  Mr. ROYCE. But let me make the point, since this bill does not 
require a cutoff of aid to Africa, the aid floor is unnecessary in the 
bill.
  I will close by saying that the gentleman from New York (Mr. Gilman), 
chairman of the Committee on International Relations, opposes this 
amendment to the bill as well. I close, in opposition, with that 
argument.
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Ms. Waters).
  The amendment was rejected.
  The CHAIRMAN. It is now in order to consider amendment No. 4 printed 
in Part II of House Report 105-431.


                 Amendment No. 4 Offered by Ms. Waters

  Ms. WATERS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Ms. Waters:
       In subsection (c) of section 6 (United States-Sub-Saharan 
     Africa Trade and Economic Cooperation Forum), insert before 
     the period at the end of paragraph (1) the following: ``, 
     including encouraging joint ventures between small and large 
     businesses''.

  The CHAIRMAN. Pursuant to House Resolution 383, the gentlewoman from 
California (Ms. Waters) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentlewoman from California (Ms. Waters).
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume. 
I continue with discussion on this legislation by way of amendment.
  Mr. Chairman, I proudly stand before this House as an advocate for 
Africa, but I proudly stand before this House as an advocate for my 
district and for my people. I do not take a back seat to anybody when 
it comes to taking this floor or taking my place in committee to talk 
about the needs of people in this country or people in other places in 
the world.
  As a matter of fact, not only do I ask for money for Africa, I ask 
for money for south central Los Angeles, I ask for money for Harlem, I 
ask for money for Philadelphia, I ask for money for St. Louis, I ask 
for money for communities in this Nation and sections of this world 
where I think resources should be directed. I do it without taking a 
back seat to anybody.
  Do not forget, those of us who do this are oftentimes referred to as 
those who wish to tax and spend, as we would say. And so anybody who 
has any mistakes about what my priorities are, let me set them straight 
right now. I ask for money for Africa and I ask for money for Los 
Angeles and I ask for money for other communities that I think are in 
need.
  Having said that, let me also talk about what I have gone to the 
Committee on Appropriations for. There seems to be some belated debate 
about drugs. In the Congressional Black Caucus agenda that is 
published, the number one priority is the eradication of drugs in this 
society. I, as Chair of the Congressional Black Caucus, have gone to 
every appropriate Appropriations subcommittee to support an increase in 
the Drug Czar's budget to make sure we have money for prevention and 
education and outreach and all of those things.
  There is this funny little game that is going on now where some of 
the people on the other side of the aisle would like to pretend that 
somehow they are

[[Page H1071]]

more for the eradication of drugs in our society than people on this 
side of the aisle, and some attempts to undermine the Drug Czar.
  That little game will not work. Everybody knows that those on the 
other side of the aisle, who have been with the Just Say No policy for 
years, have done nothing, have accomplished nothing and have done 
nothing for the children of this society, nor have they been about the 
business of prevention and education.
  Having said that, with this bill and with this amendment, in an 
effort to try and make it a better bill, given all that I have said and 
my concerns about the fact that there are requirements in this 
legislation that you will see in no other trade agreement, and I have 
looked at them all, including the Caribbean Basin Initiative; and you 
have gone overboard in trying to dictate what the trade relationship 
will be with Africa in ways that it has not been done before, but I 
recognize many of you who have worked on the bill really do believe 
that you are doing the right thing when you try to dictate land reform 
policies, and when you try to dictate how much money will be spent by 
government on its own needs, when you try to dictate that there will be 
no exclusion of any industries to invest in. I understand that.
  But the amendment that I have brought before you today that would 
allow some flexibility in the review when these countries are being 
looked at was a simple amendment that simply codified what you said 
your intent was. This amendment that I have before you at this moment 
goes beyond simply allowing major corporations to swoop into Africa 
with all of its money and do the kind of investments that others will 
not have an opportunity to compete with.
  This amendment that I have before you will continue the debate, will 
force more conversation about what are the best ways by which to have 
trade agreements. In addition to that, it will encourage cooperation 
for joint ventures between large businesses and small businesses.
  We hear a lot in this Congress all the time about how much we care 
about small business. You ask any person on the other side of the aisle 
on any given day of the week, and you will hear them talk about being 
advocates for small business, we want to reduce the taxes, do not want 
to support an increase in the minimum wage, would like to do something 
with one-stop shopping to make it possible for small businesses to get 
their licenses and other kinds of things without having to go through 
bureaucracies, want to do more in having subsidies and loans available 
to small businesses.
  Let me tell you how you can help small businesses with this 
legislation. You can encourage in the conferences that are dictated, 
the meetings, the advisory boards, all of those things where you 
identify encouraging in this bill, you can encourage joint ventures 
between large businesses, corporations, and small businesses. That is 
essentially what this is all about.
  In the final analysis, these amendments are not tough amendments. 
They are not complicated amendments. They are not amendments that would 
undo the bill. These amendments for the most part are clarifying 
amendments. These amendments for the most part are good-faith 
amendments. These amendments for the most part are amendments that will 
show that those of you who have little experience in Africa are willing 
to at least listen to some of the information and advice that is coming 
from NGOs and those who have worked in Africa for many, many years.
  I would commend to you not only this amendment. Even though the other 
amendment that I advanced was just voted down and one is waiting for a 
vote when the votes will be taken up, and even if this work does not 
get done while this bill is going through the House, there will be 
attempts, if this bill passes, to continue to work to make it a better 
bill. There will be attempts to continue to work on the Senate side to 
make this a better bill.
  And then there are other opportunities where attempts will be made. 
Those opportunities lie with trying to influence the President of the 
United States when these kinds of agreements are forged. I say to you, 
in ways that you perhaps do not understand when you talk about Africa, 
Africa is not simply another place in the world for many of us. Whether 
you know it or not, it is from whence we come. It is the land of my 
ancestors. It is a place that is as dear to me as Ireland is to the 
Irish, as Israel is to the Jewish community, as other places in the 
country are to those whose families, whose histories emanate from those 
countries.
  And so I do not speak about this simply in an intellectual way and 
not simply in a policy way in the tradition that you understand. Yes, 
this is an emotional issue with me, and even though we have members of 
the Congressional Black Caucus who will stand here in the finest 
tradition and try to promote and be advocates on behalf of Africa in 
ways that make you all comfortable, I really do not care if you get 
uncomfortable with my advocacy for Africa. It is a place that I hold 
dear. It is part of my legislative agenda. It is a place that I care 
about in ways that perhaps you will never understand.
  I do not think that you understand that what I do for Africa, what I 
advocate for Africa comes from deep within my heart. It is not a 
political game. It is not about trying to send the message that perhaps 
``I'm okay, you're okay.'' This is serious business about saving a 
continent. This is serious business about being concerned about the 
resources of Africa and what happens to them.
  This is serious business about not having the United States or any 
other country do what we have done in too many places in Africa. This 
is about never ever having another Mobuto; this is about never ever 
having another Savimbi; this is about never ever seeing another 
catastrophe in Rwanda like we saw.
  This is about trying to get ahold of a direction for this country as 
it relates to Africa. This is about trying to be fair in the 
dissemination of resources. This is about respect. It is about saying 
to those heads of Africa, you have a voice, and while we want to help 
you, we are not going to run roughshod over you.
  This is not about trying to open up opportunities to go in and drill 
oil without compensating. This is not about trying to take out the 
diamonds and the gold without compensating. This is about creating that 
debate at this moment, this time in history, that will give a direction 
to Africa that will never have us go back again, but move forward with 
good will and with a conscience and get rid of the kind of policies we 
have had in the past on this continent.
  The CHAIRMAN. The time of the gentlewoman from California (Ms. 
Waters) has expired.
  Does any Member rise in opposition to the amendment?
  Mr. ROYCE. Mr. Chairman, I am not opposed to the amendment, but I ask 
unanimous consent to claim the time in opposition.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California?
  There was no objection.
  Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I have spoken previously about my perception that this 
bill does allow flexibility. We do have concerns about equal access to 
U.S. firms. And, yes, there are guidelines in the bill regarding equal 
access to U.S. firms. But let us go to the subject of this amendment.

                              {time}  1530

  I applaud the gentlewoman from California (Ms. Waters) for this good 
amendment to the bill.
  Many Members have visited Africa and have spoken with African and 
American businesses, both large and small, on the issue of U.S.-Africa 
trade. Indeed, the gentlewoman and myself were on a CODEL where we met 
with business interests across the continent in Africa. It is entirely 
appropriate that language be included to support joint ventures between 
large and small businesses. So this is a good amendment and I support 
this amendment.
  Mr. Chairman, I yield 2 minutes to the gentleman from Washington (Mr. 
Hastings) for a statement that he would like to make on the bill at 
this time.
  Mr. HASTINGS of Washington. Mr. Chairman, I thank the gentleman for 
yielding.
  I rise to express my concern over certain provisions in this bill. 
While we

[[Page H1072]]

certainly support all of the efforts to expand trade between our Nation 
and the rest of the world, we also must take action to ensure that the 
trade is not a one-way trade.
  This bill outlines several criteria that the President must consider 
before granting preferential trade status to any Sub-Saharan African 
nation. Specifically, the President must consider a country's progress 
in reducing tariffs on American products, eliminating other nontariff 
barriers to American imports, and abiding by internationally accepted 
trading practices.
  Mr. Chairman, this bill is very clear that free and open trade ought 
to be the goal of the administration in this country. Prohibitive 
actions against U.S. products run counter to the intent of this bill 
and, by definition, would preclude those countries from being granted 
preferential treatment under this bill.
  A number of my constituents have already attempted to pry open the 
doors of African nations. In particular, our domestic apple, pear and 
peach producers and processors have on a number of occasions attempted 
to export their products to South Africa. On each occasion they have 
been rejected. Potential recipients should therefore be put on notice: 
Any effort to continue to block access to U.S. products violates the 
provisions of this bill and would preclude receiving the benefits of 
this proposal.
  I and my colleagues from the Northwest will certainly be monitoring 
the administration's implementation of this bill. We expect the 
administration to abide by the eligibility factors contained in this 
bill, and we will continue to work closely with the U.S. Trade 
Representative to ensure that all trade with Sub-Saharan Africa is both 
free and fair for U.S. producers, processors and consumers.
  Mr. ROYCE. Mr. Chairman, I support this amendment, and I yield back 
the balance of my time
  The CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Ms. Waters).
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 5 printed 
in Part II of House Report 105-431.


            Amendment No.5 Offered by Mr. Davis of Illinois

  Mr. DAVIS of Illinois. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Davis of Illinois:
       At the end add the following:

     SEC. 18. DONATION OF OBSOLETE AIR TRAFFIC CONTROL EQUIPMENT 
                   TO ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.

       It is the sense of the Congress that, to the extent 
     appropriate, the United States Government should make every 
     effort to donate to governments of sub-Saharan African 
     countries (determined to be eligible under section 4 of this 
     Act) obsolete air traffic control equipment, including 
     appropriate related reimbursable technical assistance for 
     such equipment.

  The CHAIRMAN. Pursuant to House Resolution 383, the gentleman from 
Illinois (Mr. Davis) and a Member opposed each will control 10 minutes.
  The Chair recognizes the gentleman from Illinois (Mr. Davis).
  Mr. DAVIS of Illinois. Mr. Chairman, the amendment which I offer 
today does not change the intent of this bill in any way. Rather, it 
seeks to ensure that as we increase trade with Sub-Saharan African 
countries, we do so knowing that the infrastructure for air traffic is 
sound and safe. Therefore, this amendment expresses the sense of 
Congress that the United States should make every effort to donate 
surplus traffic control equipment, including related reimbursable 
technical equipment, to eligible Sub-Saharan countries.
  This amendment primarily does three things. First, it reaffirms our 
commitment as the leader in technology to bridge the gap in technology 
that currently exists in Sub-Saharan African countries with regard to 
air traffic control equipment. Secondly, we seek to ensure that our 
planes and personnel traveling in African airspace will be safe. 
Essentially, we are investing in the infrastructure of our trading 
partner. Finally, this amendment increases the communication between 
our two nations.
  Currently, the International Federation of Airline Pilots Association 
and others have declared that the majority of airspace over Africa is 
critically deficient in air traffic control. Moreover, pilots have 
stated that the deficiencies such as lack of radars, no VHF radio 
coverage, inconsistencies in air traffic control, and sparse 
meteorological information, have contributed to Africa's poor safety 
record. In fact, according to recent articles, in much of the 
uncontrolled airspace pilots generally provide their own form of air 
traffic control from the cockpit by broadcasting their next position in 
hopes that crews from other aircraft will be listening.
  In 1996, the International Airline Pilots Association reported that 
there were 77 near-midair collisions in the African airspace. Thirty of 
the 77 near-midair collisions occurred over the following Sub-Saharan 
countries: Cameroon, Chad, Congo, Madagascar, Mauritania, Niger and 
Senegal. Most of the airspace north of Zimbabwe is uncontrolled, with 
little radar and no VHF radio coverage.
  As trade has increased in Africa with the lifting of apartheid 
sanctions in South Africa, air traffic has increased 120 percent in 
some parts of Africa. However, during this period of growth the 
aviation infrastructure has remained the same or deteriorated. This has 
led to a situation where the safety of aircraft flying in the region 
may be seriously compromised.
  Clearly, the need for better air traffic control equipment and 
communications systems exists in Africa. We stand in a unique position 
as a world leader in technology, and I believe that we have an 
obligation to help bridge the technology gap that exists between our 
country and Africa.
  This amendment would be beneficial to both of our countries, and I, 
therefore, urge its immediate adoption.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN pro tempore (Mr. Wicker). Does any Member rise in 
opposition to the amendment?
  Mr. ROYCE. Mr. Chairman, I ask unanimous consent to claim the time in 
opposition to speak in favor of the amendment.
  The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the 
request of the gentleman from California?
  There was no objection.
  The CHAIRMAN pro tempore (Mr. Wicker). The gentleman from California 
(Mr. Royce) is recognized for 10 minutes.
  Mr. ROYCE. Mr. Chairman, I yield myself such time as I may consume to 
make the point, cash-poor African governments must balance many needs 
for expenditures, and new air traffic control equipment is not at the 
top of their list. U.S. obsolete equipment is not obsolete for smaller, 
less busy African airports, and therefore this is a good amendment to 
the bill. We support this amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. DAVIS of Illinois. Mr. Chairman, I yield such time as she may 
consume to the gentlewoman from Florida (Ms. Brown).
  Ms. BROWN of Florida. Mr. Chairman, I want to say that I am a strong 
supporter of the African Growth and Opportunity Act. For many years we 
have worked to bring Africa to the world table with trade and economic 
development, and today will be an historical day for our country. I 
also want to commend President Clinton for his upcoming trip to Africa, 
where he will be the first sitting United States President to visit 
Africa to promote relations and trade.
  Many Americans are descendents of slaves brought here from Africa. In 
fact, it is estimated that 400 million Africans died in the slave trade 
process. This bill is just a first step in reworking our relationship 
with Africa. I think it makes an incredible statement to finally 
establish a positive economic cooperation between this country and 
Africa, and we must take this opportunity to do it.
  Infrastructure is a key component of economic growth and development, 
and it is the country's vision for economic success. As a member of the 
Committee on Transportation and Infrastructure, I have seen this in our 
own country.
  I support the Davis amendment because it is critical that these 
countries have the proper equipment with which to grow. Our excess air 
traffic control

[[Page H1073]]

equipment and technical assistance in this area could be very 
beneficial to these countries.
  This bill and this amendment is the first of what I hope are many 
steps toward developing economic and political relationships with 
Africa. It will give these African countries an opportunity to expand 
their economic and political potential through a strong link with the 
United States.
  Mr. DAVIS. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New Jersey (Mr. Payne).
  Mr. PAYNE. Mr. Chairman, let me commend the gentleman from Illinois 
(Mr. Davis) for his amendment. I have traveled extensively in Africa by 
land, by rail, by air, and by sea. As we are developing infrastructure 
in Africa, I think that it is essential and important that as we move 
towards Africa into the area of trade and development and growth, that 
we need to take a look at the infrastructure.
  In the bill there are dollars that are set aside through OPIC to deal 
with the infrastructure, to improve the roads and the ports. But I do 
not think anything could be more important than to shore up the air 
traffic control.
  We have members of our FAA that travel around the world to certify 
airports. Several airports in Africa are not certified, in particular 
the airport in Lagos, Nigeria.
  We are here saying that there should be standards so that air safety 
is secure. There should be standards so that air transport can be 
moved. I have traveled on charter planes and other kinds of aircraft, 
and I would like to say that the Davis amendment will go far to shore 
up and improve the air transportation in these countries which is so 
essential for communications.
  So I once again commend the gentleman from Illinois for his amendment 
and urge support for the Davis amendment.
  Mr. DAVIS. Mr. Chairman, I have no further requests for time, and I 
yield back the balance of my time, and urge adoption of this amendment.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Illinois (Mr. Davis).
  The amendment was agreed to.
  The CHAIRMAN pro tempore (Mr. Wicker). It is now in order to consider 
amendment No. 6 printed in Part II of House Report 105-31.


                 Amendment No.6 Offered by Mr. Bereuter

  Mr. BEREUTER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN pro tempore (Mr. Wicker). The Clerk will designate the 
amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Bereuter:
       Add at the end of section 4 the following:
       (e) Designation of Additional Countries and a Region in 
     Africa.--
       (1) Authority of the president.--The President may 
     designate any of the countries or the region listed in 
     paragraph (2) as eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act if the President determines that the 
     country or region otherwise meets the requirements of this 
     section and that the designation is in the national interest 
     of the United States. Any country or region so designated 
     shall be deemed to be an eligible country in sub-Saharan 
     Africa under subsection (a) for purposes of this Act if, 
     within 1 year after such designation, a law is enacted 
     approving the designation.
       (2) Countries.--The countries referred to in paragraph (1) 
     and Mauritania, Morocco, Algeria, Egypt, and Tunisia, and the 
     region referred to is the Western Sahara region of northwest 
     Africa.

  The CHAIRMAN pro tempore (Mr. Wicker). Pursuant to House Resolution 
383, the gentleman from Nebraska (Mr. Bereuter) and a Member opposed 
each will control 10 minutes.
  The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).


           Modification to Amendment Offered by Mr. Bereuter

  Mr. BEREUTER. Mr. Chairman, I have a modification, and I ask 
unanimous consent that the Clerk be permitted to read the modification 
to the amendment and that the amendment be so modified.
  The CHAIRMAN pro tempore (Mr. Wicker). The Clerk will report the 
modification to the amendment offered by the gentleman from Nebraska 
(Mr. Bereuter).
  The Clerk read as follows:
  Amendment offered by Mr. Bereuter, as modified:
       Add at the end of section 4 the following:
       (e) Designation of Morocco.--The President may designate 
     Morocco as eligible to participate in programs, projects, or 
     activities, or receive assistance or other benefits under 
     this Act if the President determines that Morocco otherwise 
     meets the requirements of this section and that the 
     designation is in the national interest of the United States. 
     If so designated, Morocco shall be deemed to be an eligible 
     country in sub-Saharan Africa under subsection (a) for 
     purposes of this Act, if, within 1 year after such 
     designation, a law is enacted approving the designation.

  The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the 
modification to the amendment offered by the gentleman from Nebraska 
(Mr. Bereuter)?
  There was no objection.
  Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may 
consume. Mr. Chairman, this simply narrows the scope of the original 
amendment to include Morocco. I would like to take this opportunity to 
thank the distinguished gentleman from Illinois and all of his leading 
cosponsors for introducing this important legislation.
  There is not a better time than on the eve of the President's visit 
to Africa to send an important message to many countries of Africa that 
we want them as trade partners, and that we are going to be assisting 
them in that respect.

                              {time}  1545

  The message this legislation sends to governments of the country of 
Africa is clear: Undertake sustained economic reform and trade 
liberalization policies, and we will trade with you, and you will 
benefit.
  In fact, Mr. Chairman, this message is so important I think it should 
not be lost on the countries of North Africa. That is why this Member, 
along with the distinguished gentleman from New York (Mr. Solomon), 
have proposed this amendment covering Morocco. It still, of course, 
would permit the President to make a determination that this is in our 
national interests, that they meet the criteria, it would still come to 
Congress for approval. Our amendment simply permits that.
  Mr. Chairman, it is clear to this Member that there is really no 
valid reason to exclude Morocco from the scope of this act. For 
example, there are many sub-Saharan countries with per capita incomes 
higher than that of Morocco, which desperately needs the direction 
provided by this act.
  Secondly, since the 1990s, the Moroccan government has pursued 
economic reform programs supported by the IMF and the World Bank. It 
has restrained spending, revised the tax system, reformed the banking 
system, lifted import restrictions and lowered tariffs.
  Also, Mr. Chairman, let me say that the Congressional Budget Office 
has determined that our amendment has no direct effect on revenues 
because any future eligibility designation would require implementing 
legislation.
  Mr. Chairman, I yield such time as he may consume to the gentleman 
from New York (Mr. Solomon).
  Mr. SOLOMON. Mr. Chairman, I thank the gentleman for yielding to me.
  I will not take the committee's time, since we are under time 
constraints now to get out at a reasonable hour tonight. Let me just 
concur with the remarks of the gentleman from Nebraska (Mr. Bereuter). 
Morocco has been such a strong ally and such a stabilizing force in 
that part of the world that we wanted to make sure they were included 
in this legislation.
  I commend the gentleman and I thank the very distinguished chairman 
of the Committee on International Relations for his support, as well as 
the gentleman from New Jersey.
  Mr. BEREUTER. Mr. Chairman, I yield 2 minutes to the gentleman from 
New York (Mr. Gilman).
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Chairman, I rise in strong support of the Bereuter 
and Solomon amendment to provide for the possibility of including 
Morocco in the African Growth and Opportunity Act, and I want to 
commend the distinguished chairman of our Subcommittee on Asia and the 
Pacific, the gentleman from Nebraska (Mr. Bereuter), and our 
distinguished chairman of the Committee on Rules, the gentleman from 
New York (Mr. Solomon), for their work on this measure.

[[Page H1074]]

  As currently written, the bill includes only sub-Saharan African 
nations, but there is no reason why Morocco in North Africa should not 
be part of the legislation. Morocco has been a strong ally to our 
Nation for many years, and under the leadership of King Hassan, Morocco 
has played a constructive role in the Arab-Israeli peace process and 
numerous other foreign policy priorities of our Nation.
  In addition, Morocco has taken significant steps towards democracy, 
toward market economics, and respect for human rights. Indeed, it is a 
model Nation for the entire African region. Accordingly, I fully 
support the amendment, and I urge my colleagues to do the same.
  Mr. BEREUTER. I thank the distinguished chairman, and I reserve the 
balance of my time, Mr. Chairman.
  The CHAIRMAN pro tempore. Does the gentleman from New Jersey (Mr. 
Payne) claim the time in opposition?
  Mr. PAYNE. Yes, I do, Mr. Chairman.
  The CHAIRMAN pro tempore. The gentleman from New Jersey (Mr. Payne) 
is recognized for 10 minutes.
  Mr. PAYNE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in opposition to this amendment. I think it is 
utterly preposterous that we have before us the African Growth and 
Opportunity Act bill with the specific intent of helping countries in 
sub-Saharan Africa, and there are certain eligibility requirements that 
are outlined in the bill, which many of the countries in North Africa 
do not fit in.
  The fact that North Africa was separated from Africa was not done by 
African-Americans, but it was done by the West. During World War II we 
talked about North Africa, and post-World War II it was referred to as 
North Africa. At one time we had Asia Minor. It became the Middle East.
  How all of a sudden do we now determine that North Africa should be a 
part of sub-Saharan Africa, when throughout our modern history North 
Africa was North Africa; not that they wanted it, but that was what the 
West said it was, and therefore they accepted it? Now, finally, 
something to help sub-Saharan Africa, 700 million people, 50 countries. 
We have always heard sub-Saharan Africa referred to as sub-Saharan 
Africa.
  We know that if you take aid to Africa, if you add the Middle East, 
then Africa would have the greatest amount of aid, because $3 billion 
goes to Israel, $2 billion goes to Egypt, and if you add that to the 
$600 million that sub-Saharan Africa gets, you would have $5.6 billion. 
But we do not do that. We separate sub-Saharan Africa, where you have 
$1 a person when you take the 600 or $700 million for the 700 million 
sub-Saharan Africans, the poorest region in the world.
  So all of a sudden along comes something positive, and we are saying 
that Egypt now, that gets $2 billion, that should be accorded the 
something, when finally sub-Saharan Africa has a bill that might start 
to have some trading benefit.
  Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
  Mr. PAYNE. I yield to the gentleman from Nebraska.
  Mr. BEREUTER. Mr. Chairman, I thank the gentleman for yielding for a 
clarification.
  I wanted the gentleman to know that the modification that I made 
restricted the amendment to Morocco. It does not include Egypt or other 
North African countries.
  Mr. PAYNE. That certainly eases it a bit. I think also in this bill, 
we are talking about governance; that the countries, the five or six 
that will be selected have to go through elections. We are saying that 
there cannot be human rights abuses. We are saying that there has to be 
transparency in government. We are saying that there must be elections 
that are going on in these countries, or they do not fit into the first 
round.
  It is simply like NATO expansion. There are three countries that are 
going to be selected in NATO expansion. You have the Czech Republic, 
you have Poland, you have the third country in the NATO expansion, 
Hungary. It is those countries, because they have proven that they are 
moving in the right direction.
  There are still allegations of people being tortured, and the abuses 
of detainees, and prison conditions, even in Morocco. The government's 
use of force to dispel student protesters in Casablanca in January and 
February resulted in many human rights violations. There have been 
continued delays in elections, and at the time when the United Nations 
is finally attempting to broker an agreement between Morocco and 
western Sahara, the report that came back this week by former Secretary 
James Baker and Representative Dunbar states that Morocco has stalled 
the process again just last week. So I say, in conclusion, that we are 
sending the wrong message if we start to alter sub-Saharan Africa.
  If this occurred a decade ago, that would be fine, because then sub-
Saharan Africa could have been brought into the benefits that Northern 
Africa has. But I think it is wrong that we all of a sudden start this. 
That is simply like calling a new government, Benin, Liberia and Togo, 
part of the Newly Independent States of central Europe. They are not. 
They are newly independent States, but they do not qualify for funds of 
the Newly Independent States in the former Soviet countries.
  So I think when we do revisionary government, when we redefine, when 
we define for the convenience of what we want, I think we move in a 
wrong direction.
  Mr. Chairman, I reserve the balance of my time.
  Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I would say to my distinguished colleague with whom I 
serve with on the Committee on International Relations, he is at a bit 
of a disadvantage. We had modified this, and he was not aware of it, 
earlier.
  I would also say that we do not want to change the criteria for 
Morocco. They have to meet the same qualifications. The President must 
actually make a certification that they meet them, and then it must 
come to the Congress, unlike all of the other sub-Saharan African 
countries that are named in the bill. There is another step we have 
added.
  I would also say to the gentleman this: This legislation, which is, I 
think, the outstanding foreign policy legislation this Congress will 
see, is not a zero sum game. If, in fact, Morocco is deemed eligible by 
the President and the Congress then agrees, it is not at the loss of 
sub-Saharan countries. It should be open to all who meet the 
qualifications, because we benefit from it, and it is not a zero sum 
game for African countries.
  Beyond that, it is important to consider this. It is a delicate 
matter, but I think it is important that we not give the impression 
that race or religion has anything to do with respect to this 
legislation.
  Many of the border nations have people of several races, ethnic 
groups, and religions, so they are already incorporated. I understand 
that this legislation was careful and sensitive in that respect. But I 
did want the gentleman to know that all of these protections are there. 
In fact, there is an additional set of protections before Morocco could 
come in, but to close off that part of Africa, I think, is the wrong 
message.
  So I hope the gentleman might reconsider when he understands the 
additional steps we have taken to make sure it is not overextended or 
there is no free ride. I thank the gentleman for listening.
  Mr. Chairman, I reserve the balance of my time.
  Mr. PAYNE. Mr. Chairman, I yield myself such time as I may consume.
  Let me just reiterate, Mr. Chairman, I appreciate the clarification, 
the fact that the $2 billion that Egypt is getting, that it will not be 
part of this bill.
  I still contend that if we are going to deal with sub-Saharan Africa, 
that has been the forgotten area. The only time we dealt with sub-
Saharan Africa was in the Cold War when we dealt with Mobutu, who now 
has left that country in such bad straits that even a new government, a 
fledgling government, I question whether the Kabila government will 
actually make it. And the fact that we have still a Civil War in Angola 
between Savimbi holding out, and the dos Santos government, we still 
have remnants of the Cold War, where we used Africa as a vehicle in 
that war.
  I simply say it is time we try to correct those Cold War problems 
that we

[[Page H1075]]

created. I think this is a vehicle that we could do it with. I think it 
is too little. All of these fears that I hear of organized labor, 
hundreds of thousands of textile jobs being lost, I just cannot believe 
that people would believe that this first step would create that. I do 
not believe it will do that. I think it will really just be a little 
drop in the bucket and a step in the right direction.
  I still say, there are no kings in sub-Saharan Africa. If we are 
going to have elections, how can, therefore, governance be declared in 
Morocco when they do not elect their head of State? Right there it 
would seem to me to eliminate that country from this bill, because how 
do they have governance at that time?
  Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
  Mr. PAYNE. I yield to the gentleman from Nebraska.
  Mr. BEREUTER. Mr. Chairman, in constitutional monarchies the monarchs 
are never elected, but Morocco has an important, improving elected 
legislative body. Just last year they added a second Chamber, which is 
directly elected. So like Britain, like Denmark, like Norway, they are 
a constitutional monarchy, but of course those bodies and Morocco has 
an elected legislative body.
  Mr. PAYNE. The difference, if I may reclaim my time, Mr. Chairman, 
the difference is in the countries that the gentleman has explained 
where the legislature has some authority. They are able, then, to have 
the will of the people move forward.
  In the so-called constitutional monarchies that we find in other 
areas in the Middle East and in the Far East, we do not find the 
legislature, as the gentleman mentioned, they are moving into the tier. 
In Europe they have been into that tier for decades, for centuries.
  I have nothing against Morocco, but I simply think there is too 
little already going into the bill, and I just think to bring in all of 
North Africa to the bill, when we are talking about three or four 
initial countries to be included, I think it dilutes the bill.
  Mr. BEREUTER. If the gentleman will continue to yield once more, so 
our colleagues are not confused, this relates to one country only, not 
all of North Africa. I thank the gentleman for yielding.
  Mr. PAYNE. They say, ``Start me with 10 who are stout-hearted men, 
and I'll soon give you 10,000 more.'' We start one, and then we might 
find it is good for one and good for another.
  I think we should do something in North Africa. I think Tunisia's 
government is working in the right direction. They are also certainly 
good. I think this new fledgling western Sahara, once the determination 
has been made there, should be assisted.
  Why not have a North African growth and development bill? That would 
make a lot of sense. I would just ask the gentleman from Nebraska (Mr. 
Bereuter) and the gentleman from New York (Mr. Solomon), that might be 
what they want to introduce, a North African growth and development 
bill. I would be as supportive of that bill as I know the gentlemen are 
of this. That might be the solution.
  Mr. BEREUTER. Mr. Chairman, if the gentleman will continue to yield, 
I cannot be any more supportive of this legislation. I am an original 
cosponsor. I think it is the most important foreign policy initiative 
the United States has even ever taken in post-colonial days with 
respect to Africa. It deserves to be broadened. If the gentleman would 
like to add Tunisia by unanimous consent, I would be happy to receive 
it.
  Mr. PAYNE. If the gentleman is willing to introduce his legislation, 
I would be more than happy to at that time identify Tunisia as one of 
those that should have the opportunity.
  But once again, I just hope that my statement is clearly understood. 
It is that it is pro sub-Saharan Africa. There is too little, too late 
at this point. I just fear a dilution of this first step that we are 
attempting to move forward.
  Mr. Chairman, I yield back the balance of my time.

                              {time}  1600

  Mr. BEREUTER. Mr. Chairman, I yield myself such time as I may 
consume.
  Just to reiterate, this legislation is not a zero sum game. Adding 
Morocco as a country, the President may consider to meet all of the 
criteria, including human rights and everything else that is in the 
bill; to make a recommendation that it is in our national interest to 
ask the Congress to approve it is all this legislation does. It sets in 
place a requirement that Congress take action.
  It should not be closed. We should not send that message to North 
Africa.
  This is an excellent bill. The amendments that have been adopted and 
this amendment will make it an even better one. I urge my colleagues to 
support the amendment.
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN pro tempore (Mr. Wicker). The question is on the 
amendment, as modified, offered by the gentleman from Nebraska (Mr. 
Bereuter).
  The question was taken; and the Chairman pro tempore announced that 
the ayes appeared to have it.
  Mr. PAYNE. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN pro tempore. Pursuant to House Resolution 383, further 
proceedings on the amendment, as modified, offered by gentleman from 
Nebraska (Mr. Bereuter) will be postponed.


          Sequential Votes Postponed in Committee of the Whole

  The CHAIRMAN pro tempore. Pursuant to House Resolution 383, 
proceedings will now resume on those amendments on which further 
proceedings were postponed in the following order:
  Amendment No. 2 offered by the gentlewoman from California (Ms. 
Waters); modified form of amendment No. 6 offered by the gentleman from 
Nebraska (Mr. Bereuter).
  The Chair will reduce to 5 minutes the time for any electronic vote 
after the first vote in this series.


                 Amendment No. 2 Offered by Ms. Waters

  The CHAIRMAN pro tempore. The pending business is the demand for a 
recorded vote on the amendment offered by the gentlewoman from 
California (Ms. Waters) on which further proceedings were postponed and 
on which the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN pro tempore. Pursuant to House Resolution 383, the Chair 
announces he will reduce to a minimum of 5 minutes the period of time 
within which a vote by electronic device will be taken on the 
additional amendment on which the Chair has postponed further 
proceedings.
  The vote was taken by electronic device, and there were--ayes 81, 
noes 334, not voting 15, as follows:

                             [Roll No. 44]

                                AYES--81

     Abercrombie
     Barrett (WI)
     Berman
     Bishop
     Bonior
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Campbell
     Carson
     Clay
     Clayton
     Clyburn
     Conyers
     Crane
     Cummings
     Davis (IL)
     Davis (VA)
     DeFazio
     Delahunt
     DeLauro
     Dixon
     Dooley
     Engel
     Farr
     Fattah
     Filner
     Ford
     Frank (MA)
     Gejdenson
     Gephardt
     Gutierrez
     Hastings (FL)
     Hefner
     Hilliard
     Hoyer
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson, E. B.
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kucinich
     Lewis (GA)
     Maloney (CT)
     Markey
     Martinez
     Matsui
     McKinney
     Meehan
     Meek (FL)
     Meeks (NY)
     Millender-McDonald
     Miller (CA)
     Mink
     Moran (VA)
     Nadler
     Olver
     Owens
     Pastor
     Payne
     Pelosi
     Rangel
     Rivers
     Roybal-Allard
     Rush
     Sanders
     Scott
     Serrano
     Stark
     Stokes
     Thompson
     Thurman
     Towns
     Velazquez
     Waters
     Watt (NC)
     Wynn

                               NOES--334

     Ackerman
     Aderholt
     Allen
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berry
     Bilbray
     Bilirakis
     Blagojevich
     Bliley
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Borski
     Boswell
     Boucher
     Boyd
     Brady
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Cannon
     Cardin
     Castle

[[Page H1076]]


     Chabot
     Chambliss
     Christensen
     Clement
     Coble
     Coburn
     Collins
     Combest
     Condit
     Cook
     Cooksey
     Costello
     Cox
     Coyne
     Cramer
     Crapo
     Cubin
     Cunningham
     Danner
     Davis (FL)
     Deal
     DeGette
     DeLay
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Doggett
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Eshoo
     Etheridge
     Evans
     Everett
     Ewing
     Fawell
     Fazio
     Foley
     Forbes
     Fossella
     Fowler
     Fox
     Franks (NJ)
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goode
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Granger
     Green
     Greenwood
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Herger
     Hill
     Hilleary
     Hinchey
     Hinojosa
     Hobson
     Hoekstra
     Holden
     Hooley
     Horn
     Hostettler
     Houghton
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jenkins
     Johnson (CT)
     Johnson (WI)
     Johnson, Sam
     Jones
     Kanjorski
     Kasich
     Kelly
     Kennelly
     Kim
     Kind (WI)
     King (NY)
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     LaFalce
     LaHood
     Lampson
     Lantos
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Lowey
     Lucas
     Luther
     Maloney (NY)
     Manzullo
     Mascara
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDade
     McDermott
     McGovern
     McHale
     McHugh
     McInnis
     McIntosh
     McIntyre
     McKeon
     McNulty
     Menendez
     Metcalf
     Mica
     Miller (FL)
     Minge
     Moakley
     Mollohan
     Moran (KS)
     Morella
     Murtha
     Myrick
     Neal
     Nethercutt
     Neumann
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Ortiz
     Oxley
     Packard
     Pallone
     Pappas
     Parker
     Pascrell
     Paul
     Paxon
     Pease
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pickett
     Pitts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Quinn
     Rahall
     Ramstad
     Regula
     Reyes
     Riggs
     Riley
     Roemer
     Rogan
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rothman
     Roukema
     Royce
     Ryun
     Sabo
     Salmon
     Sanchez
     Sandlin
     Sanford
     Sawyer
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Schumer
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Shimkus
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Snyder
     Solomon
     Souder
     Spratt
     Stabenow
     Stearns
     Stenholm
     Strickland
     Stump
     Stupak
     Sununu
     Talent
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thornberry
     Thune
     Tiahrt
     Tierney
     Traficant
     Turner
     Upton
     Vento
     Visclosky
     Walsh
     Wamp
     Watkins
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Weygand
     White
     Whitfield
     Wicker
     Wise
     Wolf
     Woolsey
     Yates
     Young (AK)
     Young (FL)

                             NOT VOTING--15

     Chenoweth
     Deutsch
     Furse
     Gonzalez
     Harman
     John
     Manton
     Poshard
     Radanovich
     Redmond
     Rodriguez
     Schiff
     Spence
     Torres
     Waxman

                              {time}  1623

  Mr. SAM JOHNSON of Texas and Mr. BILBRAY changed their vote from 
``aye'' to ``no.''
  Messrs. FARR of California, GEJDENSON, MILLER of California, FRANK of 
Massachusetts, Ms. DeLAURO, Ms. PELOSI, and Messrs. MARKEY, MATSUI and 
KENNEDY of Massachusetts changed their vote from ``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


         Amendment No. 6, as Modified, Offered by Mr. Bereuter

  The CHAIRMAN pro tempore (Mr. Wicker). The pending business is the 
demand for a recorded vote on the amendment No. 6, as modified, offered 
by the gentleman from Nebraska (Mr. Bereuter), on which further 
proceedings were postponed and on which the ayes prevailed by voice 
vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The CHAIRMAN pro tempore. A recorded vote has been demanded.
  A recorded vote was ordered.
  The CHAIRMAN pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 156, 
noes 258, not voting 16, as follows:

                             [Roll No. 45]

                               AYES--156

     Armey
     Barr
     Barrett (NE)
     Bass
     Bateman
     Bereuter
     Berman
     Bilbray
     Bilirakis
     Blagojevich
     Bliley
     Blumenauer
     Boehlert
     Boehner
     Brown (CA)
     Buyer
     Callahan
     Calvert
     Camp
     Campbell
     Canady
     Cannon
     Chabot
     Christensen
     Clement
     Coburn
     Cooksey
     Cox
     Crane
     Davis (VA)
     DeLay
     Diaz-Balart
     Doggett
     Doolittle
     Dreier
     Dunn
     Ehlers
     Ehrlich
     English
     Eshoo
     Ewing
     Fawell
     Foley
     Forbes
     Fossella
     Fox
     Franks (NJ)
     Frelinghuysen
     Gejdenson
     Gekas
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Goodlatte
     Goss
     Graham
     Greenwood
     Gutierrez
     Gutknecht
     Hall (OH)
     Hamilton
     Hastert
     Hastings (WA)
     Hayworth
     Hill
     Hobson
     Hoekstra
     Horn
     Hostettler
     Houghton
     Hoyer
     Hyde
     Johnson (CT)
     Kasich
     Kelly
     Kim
     Kind (WI)
     Kingston
     Klug
     Knollenberg
     LaFalce
     LaHood
     Latham
     LaTourette
     Lazio
     Leach
     Lewis (CA)
     Lucas
     Luther
     Manzullo
     McCollum
     McDade
     McHugh
     McInnis
     McIntosh
     Mica
     Miller (FL)
     Minge
     Moran (KS)
     Moran (VA)
     Morella
     Nethercutt
     Neumann
     Northup
     Owens
     Oxley
     Pappas
     Paxon
     Pease
     Peterson (PA)
     Petri
     Pickett
     Pitts
     Pomeroy
     Portman
     Pryce (OH)
     Quinn
     Ramstad
     Rivers
     Rogan
     Ros-Lehtinen
     Roukema
     Ryun
     Salmon
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Sherman
     Shimkus
     Shuster
     Skaggs
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Snowbarger
     Snyder
     Solomon
     Sununu
     Thune
     Tiahrt
     Walsh
     Watkins
     Wexler
     White
     Whitfield
     Wicker
     Young (AK)
     Young (FL)

                               NOES--258

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Andrews
     Archer
     Bachus
     Baesler
     Baker
     Baldacci
     Ballenger
     Barcia
     Barrett (WI)
     Bartlett
     Barton
     Becerra
     Bentsen
     Berry
     Bishop
     Blunt
     Bonilla
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brady
     Brown (FL)
     Brown (OH)
     Bryant
     Bunning
     Burr
     Burton
     Cardin
     Carson
     Castle
     Chambliss
     Clay
     Clayton
     Clyburn
     Coble
     Collins
     Combest
     Condit
     Conyers
     Cook
     Costello
     Coyne
     Cramer
     Crapo
     Cubin
     Cummings
     Cunningham
     Danner
     Davis (FL)
     Davis (IL)
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dickey
     Dicks
     Dingell
     Dixon
     Dooley
     Doyle
     Duncan
     Edwards
     Emerson
     Engel
     Ensign
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Fazio
     Filner
     Ford
     Fowler
     Frank (MA)
     Frost
     Gallegly
     Ganske
     Gephardt
     Goode
     Goodling
     Gordon
     Granger
     Green
     Hall (TX)
     Hansen
     Hastings (FL)
     Hefley
     Hefner
     Herger
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Holden
     Hooley
     Hulshof
     Hunter
     Hutchinson
     Inglis
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     Johnson (WI)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kilpatrick
     King (NY)
     Kleczka
     Klink
     Kolbe
     Kucinich
     Lampson
     Lantos
     Largent
     Levin
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Lowey
     Maloney (CT)
     Maloney (NY)
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCrery
     McDermott
     McGovern
     McHale
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meeks (NY)
     Menendez
     Metcalf
     Millender-McDonald
     Miller (CA)
     Mink
     Moakley
     Mollohan
     Murtha
     Myrick
     Nadler
     Neal
     Ney
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Packard
     Pallone
     Parker
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Pickering
     Pombo
     Porter
     Price (NC)
     Rahall
     Rangel
     Regula
     Reyes
     Riggs
     Riley
     Roemer
     Rogers
     Rohrabacher
     Rothman
     Roybal-Allard
     Royce
     Rush
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sanford
     Sawyer
     Schumer
     Scott
     Serrano
     Shaw
     Sisisky
     Skelton
     Slaughter
     Smith, Adam
     Smith, Linda
     Souder
     Spence
     Spratt
     Stabenow
     Stearns
     Stenholm
     Stokes
     Strickland
     Stump
     Stupak
     Talent
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thompson
     Thornberry
     Thurman
     Tierney
     Torres
     Towns
     Traficant
     Turner
     Upton
     Velazquez
     Vento
     Visclosky
     Wamp
     Waters
     Watt (NC)
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller

[[Page H1077]]


     Weygand
     Wise
     Wolf
     Woolsey
     Wynn
     Yates

                             NOT VOTING--16

     Chenoweth
     Deutsch
     Furse
     Gonzalez
     Harman
     John
     Manton
     Meek (FL)
     Peterson (MN)
     Poshard
     Radanovich
     Redmond
     Rodriguez
     Schiff
     Stark
     Waxman

                              {time}  1631

  Mr. PASTOR changed his vote from ``aye'' to ``no.''
  Messrs. DeLAY, BERMAN and COX of California changed their vote from 
``no'' to ``aye.''
  So the amendment, as modified, was rejected.
  The result of the vote was announced as above recorded.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I ask unanimous consent to 
strike the last word to enter in a colloquy with the gentleman from 
Illinois (Mr. Crane).
  The CHAIRMAN pro tempore (Mr. Wicker). Is there objection to the 
request of the gentlewoman from Texas?
  There was no objection.
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I would like to thank the 
gentleman from Illinois (Mr. Crane), first of all, for his graciousness 
and the gentleman from New York (Mr. Rangel), as well. I know we will 
have to deliberate further on these very important issues and take the 
time to go through conference and the Senate and have deliberation and 
further thought on these issues.
  Mr. Chairman, I will mention these collectively and acknowledge the 
need for further thought and deliberation, but these are very important 
points. One is the devastation of HIV, AIDS, on the continent and the 
ability of this bill to help with pharmaceuticals getting over to the 
continent to be able to help with this devastation.
  The other issue, of course, is the GSP program, which already helps 
in workers' safety rights and workers' rights, that certainly under 
that we would see that applying on the continent or aiding in making 
sure that we have good conditions for workers.
  Lastly, let me say I think it is very important that once this 
important bill passes, if our colleagues join us in passing it, that it 
not drop off the deep end and it may be helpful to consider a working 
committee that in 6 months would look at where we are on the question 
of how this bill is being implemented.
  I would like to bring to both the Chair of the International 
Relations Committee and the Trade Subcommittee on Ways and Means of my 
concern of the overwhelming HIV/AIDS epidemic that is currently 
plaguing Africa and the world. According to the World Health 
Organization, over 550,000 cases have been reported in Africa alone. 
The Aids epidemic is affecting the young work force between the ages of 
18-55, and if the work force keeps dying, how can they benefit from 
this bill?
  I would like to see, Mr. Chairman, that through this improved trade 
legislation we can encourage the expeditious exporting of much needed 
pharmecuticals to the continent in order to combat the AIDS epidemic 
ravaging Africa. Upon that effort we can build further on solving the 
AIDS problems in Africa by encouraging more research by various world 
health agencies on this problem.
  I am concerned, Mr. Chairman, that the Africa Growth and Opportunity 
Act can protect the rights of African workers. I understand and want to 
make sure that through the GSP (General System of Preferences) program 
protection for good work place conditions and more importantly worker 
safety issues will be in place under this legislation. Therefore, I 
raise with the Chairman of the Trade Subcommittee on Ways and Means the 
question as to whether this legislation would preclude the putting in 
place good work place conditions and safe work places in Africa.
  I am also concerned that this bill which will allow for increased 
trade and investment in Africa will ultimately benefit American 
workers. Africa constitutes a market of 800 million people, potentially 
one of the largest markets in the world--more people than Japan and all 
of the Asian nations combined. If this bill works, and I think it will, 
spur growth and create bigger markets for U.S. exports. Our exports to 
Africa already are intensive in high-wage industries, such as 
machinery, transportation equipment, electronics and services.
  Exports to Africa are 27% greater than our exports to all of the 
former Soviet Union combined. By aggressively following the path of 
reform, African countries can provide prosperity for their people and 
create robust markets that will help working Americans and small 
businesses. It is also important that the protection of these workers 
is inherent in this bill and that this bill will seek to protect the 
safety of these workers.
  As someone who deeply cares about Africa and our American workers, I 
just want to ensure this bill helps our nation's workers, African 
workers and creates jobs for us all.
  I am concerned, Mr. Chairman, that once the Africa Growth and 
Opportunity Act passes that its provisions are implemented. I am fully 
aware that Section 12 of the bill calls for a private advisory 
committee to assist the Board of Directors of the Overseas Private 
Investment Corporation in developing policies and programs. I am 
interested in soliciting the consideration of the Trade Subcommittee 
Chairman on Ways and Means in including in the report language of this 
bill a working advisory group established with both Members of the 
House and Senate, and the administration that would meet within six 
months of passage to monitor the implementation of the bill.
  I thank the Chair of the Trade Subcommittee for his support of the 
bill language which seeks to bring Members of Congress and the 
Administration together 6 months after the bill is enacted to monitor 
the implementation of the bill, see how it can be improved, and to 
continue to work towards creating more jobs in America and Africa.
  Mr. Chairman, I yield to the gentleman from Illinois (Mr. Crane) to 
be able to respond to these important points that I think will make 
this bill better and help the people of Africa.
  Mr. CRANE. Mr. Chairman, I think the points that my colleague has 
just made are valid and will be under consideration.
  Under the GSP program and under the bill, the President must consider 
whether a country is taking steps to afford its workers internationally 
recognized workers' rights when determining whether to designate a 
country as eligible for trade benefits.
  So I think it addresses the concerns that the gentlewoman raises and 
raises properly. We appreciate the support that the gentlewoman has 
given and look forward to working with her in the future, too.
  Ms. JACKSON-LEE of Texas. I yield back the balance of my time.
  The CHAIRMAN pro tempore. The question is on the committee amendment 
in the nature of a substitute, as modified, as amended.
  The committee amendment in the nature of a substitute, as modified, 
as amended, was agreed to.
  The CHAIRMAN pro tempore. Under the rule, the Committee rises.
  Accordingly the Committee rose; and the Speaker pro tempore (Mr. 
Ewing) having assumed the chair, Mr. Wicker, Chairman pro tempore of 
the Committee of the Whole House on the State of the Union, reported 
that that committee, having had under consideration the bill (H.R. 
1432), to authorize a new trade and investment policy for sub-Saharan 
Africa, pursuant to House Resolution 383, he reported the bill back to 
the House with an amendment adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole? If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


               Motion To Recommit Offered By Mr. Bishop.

  Mr. BISHOP. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill.
  Mr. BISHOP. Yes. In its current form, I am, Mr. Speaker.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:
       Mr. Bishop moves to recommit the bill H.R. 1432 to the 
     Committee on Ways and Means with instructions to report the 
     same to the House forthwith with the following amendment:
       Strike all after the enacting clause and insert the 
     following:

     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

[[Page H1078]]

     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 market-led economic 
     growth in, and thereby the social and economic development 
     of, the countries of sub-Saharan Africa. In particular, the 
     United States seeks to assist sub-Saharan African countries, 
     and the private sector in those 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) establishing a United States-Sub-Saharan Africa Trade 
     and Investment Partnership;
       (6) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (7) establishing a United States-Sub-Saharan Africa 
     Economic Cooperation Forum; and
       (8) 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.--For each fiscal year, the President shall 
     determine, on a case-by-case basis after providing an 
     opportunity for public comment, whether each sub-Saharan 
     African country is eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act. The President's determination shall 
     be based on the establishment and enforcement of appropriate 
     policies relating to--
       (1) promoting free movement of goods and services between 
     the United States and sub-Saharan Africa and among countries 
     in 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 
     foreign investors;
       (3) trade issues, such as protection of intellectual 
     property rights, particularly intellectual property rights 
     with respect to textile and apparel goods, improvements in 
     standards, testing, labeling, and certification;
       (4) the protection of property rights, such as protection 
     against expropriation and a functioning and fair judicial 
     system;
       (5) participation in bilateral investment treaties and the 
     harmonization of such treaties to avoid double taxation;
       (6) supporting the growth of regional markets within a free 
     trade area framework;
       (7) governance issues, such as eliminating government 
     corruption, minimizing government intervention in the market 
     such as price controls and subsidies, and streamlining the 
     business license process;
       (8) encouraging private ownership of government-controlled 
     economic enterprises;
       (9) removing restrictions on investment;
       (10) engaging in a cooperative effort with the United 
     States Customs Service to monitor and enforce policies 
     necessary to implement the special access program authorized 
     by section 8, including penalties for transshipment of 
     textile and apparel goods in contravention of United States 
     law, and providing to the Customs Service entry into that 
     country, and access to accurate information in that country, 
     in order to monitor and enforce such policies;
       (11) progress on human and worker rights, such as the 
     protection of internationally recognized worker rights as 
     defined in section 507(4) of the Trade Act of 1974, 
     especially restrictions on child labor; and
       (12) reducing tariffs and eliminating nontariff barriers to 
     United States textile and apparel goods.
       (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
       (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 has a recognizable 
     commitment to reducing poverty, increasing the availability 
     of health care and educational opportunities, 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, and promoting and enabling the formation of 
     capital to support the establishment and operation of micro-
     enterprises.
       (5) Whether or not such country engages in activities that 
     undermine United States national security or foreign policy 
     interests.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of sub-
     Saharan African countries in order to determine their current 
     or potential eligibility under subsection (a). Such 
     determinations shall be based on quantitative factors to the 
     fullest extent possible and shall be included in the annual 
     report required by section 16.
       (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.
       (3) Ineligibility of counties not cooperating with united 
     states customs.--The President shall not renew the 
     eligibility of a sub-Saharan African country which does not 
     fully cooperate with the United States Customs Service in the 
     enforcement of laws against transshipment of textile and 
     apparel goods as set forth in subsection (a)(10).
       (d) Violations of Human Rights and Ineligible Countries.--
     It is the sense of the Congress that a sub-Saharan African 
     country should not be eligible to participate in programs, 
     projects, or activities, or receive assistance or other 
     benefits under this Act if the government of that country is 
     determined by the President to engage in a consistent pattern 
     of gross violations of internationally recognized human 
     rights.
       (e) Exception.--This section does not apply with respect to 
     the amendments made by section 10 of 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

[[Page H1079]]

     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)''.

     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) Dissemination of Information by USIA.--In order to 
     assist in carrying out the purposes of the Forum, the United 
     States Information Agency shall disseminate regularly, 
     through multiple media, economic information in support of 
     the free market economic reforms described in this Act.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
       (f) Limitation on Use of Funds.--None of the funds 
     authorized under this section may be used to create or 
     support any nongovernmental organization for the purpose of 
     expanding or facilitating trade between the United States and 
     sub-Saharan Africa.

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

       (a) Declaration of Policy.--The Congress declares that the 
     President should investigate the establishment of a United 
     States-Sub-Saharan Africa Free Trade Area as a result of a 
     fully reciprocal free trade agreement, if the President 
     determines that increased trade and private sector 
     development have led to open market economies in the 
     countries of 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, may 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 may 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.--The President shall prepare and 
     transmit to the Congress a report containing the results of 
     his investigation under subsection (a).

     SEC. 8. SPECIAL ACCESS PROGRAM FOR TEXTILE AND APPAREL 
                   ARTICLES FROM ELIGIBLE COUNTRIES.

       (a) Special Access Program.--
       (1) Establishment.--The President, in consultation with 
     representatives of the domestic textile and apparel industry 
     and with representatives of countries in sub-Saharan Africa 
     that are eligible under section 4 and after providing an 
     opportunity for public comment, shall establish a special 
     access program for imports of textile and apparel articles 
     from such eligible countries in sub-Saharan Africa under 
     which specified levels of imports of eligible textile and 
     apparel articles would not be subject to duties or quotas.
       (2) Program modeled on existing programs.--The program 
     under paragraph (1) should be modeled on existing programs 
     providing for similar preferential tariff and quota 
     treatment, such as the program in effect for countries in the 
     Caribbean Basin, consistent with the international 
     obligations of the United States under the Agreement on 
     Textiles and Clothing and other trade agreements.
       (b) Eligible Goods.--
       (1) In general.--Textile and apparel articles are eligible 
     for the special access program established under subsection 
     (a) only if the articles are--
       (A) textile or apparel articles assembled in an eligible 
     sub-Saharan African country from fabrics wholly formed and 
     cut in the United States, from yarns wholly formed in the 
     United States, that are--
       (i) entered under subheading 9802.00.80 of the Harmonized 
     Tariff Schedule of the United States; or
       (ii) entered under chapter 61 or 62 of the Harmonized 
     Tariff Schedule of the United States, if, after such 
     assembly, the articles would have qualified for entry under 
     subheading 9802.00.80 of such Schedule but for the fact that 
     the articles were subjected to stone-washing, enzyme-washing, 
     acid-washing, perma-pressing, oven-baking, bleaching, 
     garment-dyeing, embroidery, or other similar processes; or
       (B) handloomed, handmade, or folklore articles of an 
     eligible sub-Saharan African country identified under 
     paragraph (2) that are certified as such by the competent 
     authority of such country.
       (2) Determination of handloomed, handmade, or folklore 
     goods.--For purposes of paragraph (1)(B), the President, 
     after consultation with the eligible sub-Saharan African 
     country concerned, shall determine which, if any, particular 
     textile and apparel goods of the country shall be treated as 
     being handloomed, handmade, or folklore goods of a kind 
     described in section 2.3(a), (b), or (c) or Appendix 3.1.B.11 
     of Annex 300-B of the North American Free Trade Agreement.
       (3) Actions by president to prevent market disruption.--The 
     President may impose the prevailing general column I rates of 
     duty, restrict the quantity of imports, or both, with respect 
     to imports of eligible goods under this subsection from any 
     eligible sub-Saharan African country if such action is 
     necessary to prevent market disruption or the threat thereof.
       (c) Report.--The President shall include as part of the 
     first annual report under section 16 a report on the 
     establishment of the special access program under subsection 
     (a) and shall report to the Congress annually thereafter on 
     the implementation of the program and its effect on the 
     textile and apparel industry in the United States.

[[Page H1080]]

       (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. PENALTIES FOR VIOLATIONS OF CUSTOMS LAWS INVOLVING 
                   TEXTILE AND APPAREL GOODS.

       (a) Penalties.--Section 592 of the Tariff Act of 1930 (19 
     U.S.C. 1592) is amended by adding at the end the following:
       ``(g) Penalties Involving Textile and Apparel Goods.--
       ``(1) Fraud.--Notwithstanding subsection (c), the civil 
     penalty for a fraudulent violation of subsection (a) based on 
     a claim that textile and apparel goods are products of 
     countries in sub-Saharan Africa--
       ``(A) shall, subject to subparagraph (B), be double the 
     amount that would otherwise apply under subsection (c)(1); 
     and
       ``(B) shall be an amount not to exceed 300 percent of the 
     declared value in the United States of the merchandise if the 
     violation has the effect of circumventing any quota on 
     textile and apparel goods.
       ``(2) Gross negligence.--Notwithstanding subsection (c), 
     the civil penalty for a grossly negligent violation of 
     subsection (a) based on a claim that textile and apparel 
     goods are products of countries in sub-Saharan Africa--
       ``(A) shall, subject to subparagraphs (B) and (C), be 
     double the amount that would otherwise apply under subsection 
     (c)(2);
       ``(B) shall, if the violation has the effect of 
     circumventing any quota of the United States on textile and 
     apparel goods, and subject to subparagraph (C), be 200 
     percent of the declared value of the merchandise; and
       ``(C) shall, if the violation is a third or subsequent 
     offense occurring within 3 years, be the penalty for a 
     fraudulent violation under paragraph (1) (A) or (B), 
     whichever is applicable.
       ``(3) Negligence.--Notwithstanding subsection (c), the 
     civil penalty for a negligent violation of subsection (a) 
     based on a claim that textile and apparel goods are products 
     of countries in sub-Saharan Africa--
       ``(A) shall, subject to subparagraphs (B) and (C), be 
     double the amount that would otherwise apply under subsection 
     (a)(3);
       ``(B) shall, if the violation has the effect of 
     circumventing any quota of the United States on textile and 
     apparel goods, and subject to subparagraph (C), be 100 
     percent of the declared value of the merchandise; and
       ``(C) shall, if the violation is a third or subsequent 
     offense occurring within 3 years, be the penalty for a 
     grossly negligent violation under paragraph (2) (A) or (B), 
     whichever is applicable.''.
       (b) Mitigation.--Section 618 of the Tariff Act of 1930 (19 
     U.S.C. 1618) is amended--
       (1) by striking ``Whenever'' and inserting ``(a) In 
     General.--Whenever'', and
       (2) by adding at the end the following new subsection:
       ``(b) Mitigation Rules Relating to Textile and Apparel 
     Goods.--
       ``(1) General rule.--Notwithstanding any other provision of 
     law, the Secretary of the Treasury may remit or mitigate any 
     fine or penalty imposed pursuant to section 592 based on a 
     claim that textile and apparel goods are products of 
     countries in sub-Saharan Africa only if--
       ``(A) in the case of a first offense, the violation is due 
     to either negligence or gross negligence; and
       ``(B) in the case of a second or subsequent offense, prior 
     disclosure (as defined in section 592(c)(4)) is made within 
     180 days after the entry of the goods.
       ``(2) Special rule for prior disclosures after 180 days.--
     In the case of a second or subsequent offense where prior 
     disclosure (as defined in section 592(c)(4)) is made after 
     180 days after the entry of the goods, the Secretary of the 
     Treasury may remit or mitigate not more than 50 percent of 
     such fines or penalties.''.
       (c) Seizure and Forfeiture.--Section 596(c)(2) of the 
     Tariff Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended--
       (1) in subparagraph (E), by striking ``or'' after the 
     semicolon;
       (2) in subparagraph (F), by striking the period and 
     inserting ``; or''; and
       (3) by inserting after subparagraph (F) the following:
       ``(G) it consists of textile or apparel goods that are 
     claimed to be products of countries in sub-Saharan Africa 
     introduced into the United States for entry, transit, or 
     exportation, and
       ``(i) the merchandise or its container bears false or 
     fraudulent markings with respect to the country of origin, 
     unless the importer of the merchandise demonstrates that the 
     markings were made in order to comply with the rules of 
     origin of the country that is the final destination of the 
     merchandise, or
       ``(ii) the merchandise or its container is introduced or 
     attempted to be introduced into the United States by means 
     of, or such introduction or attempt is aided or facilitated 
     by means of, a material false statement, act, or omission 
     with the intention or effect of--

       ``(I) circumventing any quota that applies to the 
     merchandise, or
       ``(II) undervaluing the merchandise.''.

       (d) Certificates of Origin.--Notwithstanding any other 
     provision of law, all importations of textile and apparel 
     goods that are claimed to be products of countries in sub-
     Saharan Africa shall be accompanied by--
       (1)(A) the name and address of the manufacturer or producer 
     of the goods, and any other information with respect to the 
     manufacturer or producer that the Customs Service may 
     require; and
       (B) if there is more than one manufacturer or producer, or 
     there is a contractor or subcontractor of the manufacturer or 
     producer with respect to the manufacture or production of the 
     goods, the information required under subparagraph (A) with 
     respect to each such manufacturer, producer, contractor, or 
     subcontractor, including a description of the process 
     performed by each such entity;
       (2) a certification by the importer that the importer has 
     exercised reasonable care to ascertain the true country of 
     origin of the textile and apparel goods and the accuracy of 
     all other information provided on the documentation 
     accompanying the imported goods, as well as a certification 
     of the specific action taken by the importer to ensure 
     reasonable care for purposes of this paragraph; and
       (3) a certification by the importer that the goods being 
     entered do not violate applicable trademark, copyright, and 
     patent laws.

     Information provided under this subsection shall be 
     sufficient to demonstrate compliance with the United States 
     rules of origin for textile and apparel goods.

     SEC. 10. GENERALIZED SYSTEM OF PREFERENCES.

       (a) 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 June 30, 2008, with respect to beneficiary developing 
     countries that are countries in sub-Saharan Africa.
       ``(b) Other Countries.--No duty-free treatment provided 
     under this title shall remain in effect after June 30, 1998, 
     with respect to beneficiary developing countries other than 
     those provided for in subsection (a).''.
       (b) Definition.--Section 507 of the Trade Act of 1974 (19 
     U.S.C. 2467) is amended by adding at the end the following:
       ``(6) Countries in sub-saharan africa.--The term `countries 
     in sub-Saharan Africa' has the meaning given that term in 
     section 17 of the African Growth and Opportunity Act.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on July 1, 1998.

     SEC. 11. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) Better Mechanisms To Further Goals for Sub-Saharan 
     Africa.--It is the sense of the Congress that the Secretary 
     of the Treasury should instruct the United States Executive 
     Directors of the International Bank for Reconstruction and 
     Development, the International Monetary Fund, and the African 
     Development Bank to use the voice and votes of the Executive 
     Directors to encourage vigorously their respective 
     institutions to develop enhanced mechanisms which further the 
     following goals in eligible countries in sub-Saharan Africa:
       (1) Strengthening and expanding the private sector, 
     especially among women-owned businesses.
       (2) Reducing tariffs, nontariff barriers, and other trade 
     obstacles, and increasing economic integration.
       (3) Supporting countries committed to accountable 
     government, economic reform, the eradication of poverty, and 
     the building of civil societies.
       (4) Supporting deep debt reduction at the earliest possible 
     date with the greatest amount of relief for eligible poorest 
     countries under the ``Heavily Indebted Poor Countries'' 
     (HIPC) debt initiative.
       (b) Sense of Congress.--It is the sense of the Congress 
     that relief provided to countries in sub-Saharan Africa which 
     qualify for the Heavily Indebted Poor Countries debt 
     initiative should primarily be made through grants rather 
     than through extended-term debt, and that interim relief or 
     interim financing should be provided for eligible countries 
     that establish a strong record of macroeconomic reform.
       (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

[[Page H1081]]

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

       (a) Overseas Private Investment Corporation.--
       (1) Advisory committee.--Section 233 of the Foreign 
     Assistance Act of 1961 is amended by adding at the end the 
     following:
       ``(e) Advisory Committee.--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 with respect to sub-Saharan Africa. In addition, 
     the advisory committee 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. The advisory committee shall terminate 4 
     years after the date of the enactment of this subsection.''.
       (2) 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 (as added by paragraph (1)) and any recommendations of 
     the advisory board established pursuant to such section.
       (b) Export-Import Bank.--
       (1) Advisory committee for sub-saharan africa.--Section 
     2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) 
     is amended by inserting after paragraph (12) the following:
       ``(13)(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 the enactment of this subparagraph.''.
       (2) 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 of the United States shall submit to the Congress 
     a report on the steps that the Board has taken to implement 
     section 2(b)(13)(B) of the Export-Import Bank Act of 1945 (as 
     added by paragraph (1)) and any recommendations of the 
     advisory committee established pursuant to such section.

     SEC. 14. 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 subsection (a) has adequate funding and staff to 
     carry out the duties described in subsection (a), subject to 
     the availability of appropriations.

     SEC. 15. EXPANSION OF THE UNITED STATES AND FOREIGN 
                   COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that the United States and Foreign Commercial Service should 
     expand its presence in sub-Saharan Africa by increasing the 
     number of posts and the number of personnel it allocates to 
     sub-Saharan Africa.
       (b) Reporting Requirement.--Not later than 120 days after 
     the date of the enactment of this Act, the Secretary of 
     Commerce, in consultation with the Secretary of State, should 
     report to the Congress on the feasibility of expanding the 
     presence in sub-Saharan Africa of the United States and 
     Foreign Commercial Service.

     SEC. 16. 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. 17. 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)
       Democratic Republic of Congo
       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 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)

     SEC. 18. CLARIFICATION OF DEDUCTION FOR SEVERANCE PAY.

       (a) In General.--Section 404(a) of the Internal Revenue 
     Code of 1986 (relating to deduction for contributions of an 
     employer to an employee's trust or annuity plan and 
     compensation under a deferred-payment plan) is amended by 
     adding at the end the following new paragraph:
       ``(11) Determinations relating to severance pay.--For 
     purposes of determining under this section--
       ``(A) whether severance pay is deferred compensation, and
       ``(B) when severance pay is paid,
     no amount shall be treated as received by the employee, or 
     paid, until it is actually received by the employee.''

[[Page H1082]]

       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to taxable years ending after October 8, 1997.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendment made by subsection (a) to 
     change its method of accounting for its first taxable year 
     ending after October 8, 1997--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account in 
     such first taxable year.

  Mr. BISHOP (during the reading). Mr. Speaker, I ask unanimous consent 
that the motion to recommit be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection the request of the 
gentleman from Georgia?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Georgia (Mr. Bishop) is 
recognized for 5 minutes.
  Mr. BISHOP. Mr. Speaker, we do have a motion to recommit H.R. 1432. 
The African Growth and Opportunity Act embodies an important ideal for 
which I have long been in support; namely, that the countries of sub-
Saharan Africa should improve their economic lot through development 
and trade.
  This bill would begin the process, Mr. Speaker, of weaning these 
countries from our traditional direct aid relationship.
  I became an original cosponsor of this bill for several reasons, and 
I still believe that this ideal can be obtained. However, Mr. Speaker, 
charity begins at home.
  It was brought to my attention soon after the bill's introduction 
that the bill's textile and apparel provisions could cause harm to 
these U.S. industries as well as cause harm to the U.S. market for 
cotton.
  Instead of going to the well and removing my name from the bill, I 
decided that I should work as an agent of change to convince the bill's 
sponsors to have these troublesome sections modified.
  Indeed, the changes that we push for would have resulted in the 
textile and cotton industries embracing the bill and working for its 
passage for the betterment of the economies of the United States and 
sub-Saharan Africa. The changes that we advocated would be of great 
mutual benefit.
  In April of last year, nearly a year ago, I secured assurances from 
the ranking member of the Committee on Ways and Means that these 
concerns would be addressed. Not long after this, the ranking member 
arranged a meeting between our staff, representatives of the textile 
and cotton industries, and the Committee on Ways and Means' staff.
  We also continued to dialogue with the administration officials and 
had the issue of illegal textile and apparel transshipment put to the 
U.S. trade representatives in the course of the Subcommittee on Trade 
hearing on the bill.
  It is worth noting, Mr. Speaker, that throughout the process, the 
administration has agreed that illegal transshipments and protection of 
domestic industries remains a concern.
  While the full committee made a late attempt to address the illegal 
transshipment concerns in its markup of the bill, the remedies provided 
are widely believed not to be adequately protective of American jobs, 
while still benefiting a well-developed Asian textile market.

                              {time}  1645

  For instance, the bill as offered today would disallow benefits for 2 
years to any importer found to be engaged in illegal transshipment. 
However, I myself have seen at the border that inadequate Customs 
resources do not allow tracking of successor companies which can be 
back in business in a few days nor does it allow monitoring of the 
rules of origin. Furthermore, once the illegal goods flow into the U.S. 
stream of commerce, the damage is already done.
  To address this reality, we offered a bipartisan substitute before 
the Committee on Rules. Our substitute would have incorporated 
substantial penalties on the transshipping companies, allow for seizure 
and forfeiture of textile and apparel goods and reform U.S. Customs 
mitigation procedures.
  Those procedures allow bad actors to escape meaningful fines and 
penalties and to avoid punitive sanctions. Our substitute would provide 
that the special access program established by the President should be 
modeled on the program already in effect for the countries of the 
Caribbean. This would include only those articles of textile and 
apparel which have been assembled from fabric formed from the yarn-
stage forward in the U.S. and cut in the U.S. The thread used in sewing 
also must be spun in the U.S.
  What I have described is commonly referred to as an 807A-type 
program. It is in this program where the win-win for the countries of 
sub-Saharan Africa and the U.S. textile and cotton industries lies.
  In short, Mr. Speaker, I urge that this bill be sent back to 
committee and that it be perfected so that we can do something for sub-
Saharan African countries, as well as the U.S. domestic industries.
  Mr. Speaker, I yield to the gentleman from Georgia (Mr. Collins).
  Mr. COLLINS. Mr. Speaker, I thank the gentleman for yielding. He has 
graciously advised the House on the importance of this committee and 
the importance of his motion to recommit, which contains substitute 
language.
  Mr. Speaker, on behalf of the textile workers, agriculture workers, 
their families and the communities which depend on those jobs as their 
economic base, I rise in support of the motion to recommit with 
instructions to insert into this bill the same provisions we have in 
other trade agreements pertaining to textiles, and also language that 
will address the transshipment problem.
  Mr. CRANE. Mr. Speaker, I rise in opposition to the motion to 
recommit.
  The SPEAKER pro tempore (Mr. Ewing). The gentleman from Illinois (Mr. 
Crane) is recognized for 5 minutes.
  Mr. CRANE. Mr. Speaker, I want to say a few words about the proposal 
to require that any apparel products receiving benefits under this bill 
be sewn in Africa only from U.S.-formed and -cut component parts. That 
would add, 17 percent are the estimates, to the cost of the product and 
negate any possibility of any textile and apparel coming from the sub-
Saharan continent.
  What we are attempting to do here is to provide an opportunity for a 
section of the world that numbers almost 700 million in population and 
which, in terms of a component of our textile and apparel imports, 
which in 1996 totaled $46 billion, their component was $380 million; 
and ITC says, ``Wow, that could almost double with this bill,'' add 
another $100 to $170 million.
  Be realistic, folks. We are not looking at the kinds of threats that 
have been raised by some that have spoken in opposition to the 
legislation. I understand they have constituencies that have concerns. 
They have had concerns for years, long before this bill came down the 
pike, and they will have continued concerns.
  Mr. Speaker, when all the fine words about encouraging economic 
development in Africa are set aside, the trade measures in H.R. 1432 
stand out as concrete attempts to offer real opportunities and a solid 
transition path. We are moving from the old ways of transferring 
billions of dollars in foreign aid and towards the goal that Africans 
have for themselves, economic health and self-reliance.
  I urge my colleagues to defeat the motion to recommit.
  Mr. Speaker, I yield to the gentleman from New York (Mr. Rangel), the 
distinguished ranking minority member.
  Mr. RANGEL. I thank the distinguished gentleman for yielding. Mr. 
Speaker, I oppose the motion to recommit, but I would like to tell the 
gentleman from Georgia (Mr. Bishop) that there are things in this bill 
that can be perfected.
  The question of transshipment is always a serious problem with any 
trade bill. We have tried to tighten it up. The bill has not passed the 
Senate. It will go to conference. We hope to be working with the 
President, the WTO and Customs to make certain that we do not lose 
jobs, that we do not adversely affect the industries here. Of course, 
to say that Africans cannot manufacture any African fabric does not 
make a heck of a lot of sense, but I am certain,

[[Page H1083]]

working together, we can find some compromise to improve the 
legislation.
  Mr. CRANE. Mr. Speaker, I yield to our distinguished Speaker to make 
concluding remarks.
  Mr. GINGRICH. I thank the gentleman for yielding.
  Mr. Speaker, let me say first of all that the Africa Growth and 
Opportunity Act has taken 3 years of dedicated bipartisan work, led by 
the gentleman from Illinois (Mr. Crane), by the gentleman from New York 
(Mr. Rangel), by the gentleman from Texas (Mr. Archer), by the 
gentleman from Washington (Mr. McDermott), by the gentleman from New 
York (Mr. Houghton), by the gentleman from California (Mr. Royce), by 
the gentleman from California (Mr. Matsui). A lot of people worked on 
this bill.
  Let me say to my friends, this is a very important bill. It is 
important, first, because it says to the countries of sub-Saharan 
Africa that if you meet the test of the rule of law, if you meet the 
test of private property, if you meet the test of moving towards a 
market economy, the United States wants to be your trading partner. 
This bill sets the right standard.
  In conversations that I have had with the presidents of Uganda and 
Ghana, with the vice president of South Africa, all of them regard this 
as a significant step towards moving away from an aid-based system 
towards a trade-based system and helping develop real jobs in the world 
market.
  Second, this bill is an important bill because it communicates our 
commitment to being in the world market where we create American jobs 
competing successfully with everyone. I would say to any of my friends 
who are worried about protectionism, look at the European experience 
where they have 12, 13 and 14 percent unemployment. And then look at 
the American experience where in November and December alone we created 
more jobs than Western Europe has created in the last decade. The fact 
is, being in the world market helps us create jobs because it forces us 
to be competitive.
  Finally, I would say to my good friends from Georgia, both the 
gentlemen from the Republican side and the Democratic side in their 
bipartisan effort, if they will read pages 62 to 64 of the bill, they 
will see that transshipments are specifically blocked, that the 
President, in fact, certifies that countries have met our standards for 
transshipment, and that any parent company, if an Asian company, for 
example, were to attempt to ship goods inappropriately through an 
African country, we could level triple damages against the quota of the 
Asian country. So there is in fact a strong, legitimate 
antitransshipment provision.
  This is a good bill. It is an important bill for our relationship 
with Africa. I urge every Member to vote no on the motion to recommit 
and then to vote yes on final passage.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. BISHOP. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 5(b) of rule XV, the 
Chair will reduce to a minimum of 5 minutes the period of time time 
within which a vote by electronic device, if ordered, will be taken on 
the question of passage of the bill.
  The vote was taken by electronic device, and there were--ayes 193, 
noes 224, not voting 13, as follows:

                             [Roll No. 46]

                               AYES--193

     Abercrombie
     Ackerman
     Aderholt
     Andrews
     Bachus
     Baesler
     Baker
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (WI)
     Bass
     Becerra
     Berry
     Bishop
     Blagojevich
     Bonilla
     Bonior
     Borski
     Boswell
     Boucher
     Boyd
     Brown (CA)
     Brown (OH)
     Bryant
     Bunning
     Burr
     Burton
     Callahan
     Canady
     Cardin
     Carson
     Chambliss
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Coburn
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Coyne
     Cramer
     Cunningham
     Danner
     Deal
     DeFazio
     Delahunt
     DeLauro
     Dickey
     Dingell
     Doyle
     Duncan
     Emerson
     Engel
     Etheridge
     Evans
     Everett
     Farr
     Filner
     Forbes
     Fowler
     Frank (MA)
     Ganske
     Gejdenson
     Gephardt
     Gibbons
     Goode
     Goodlatte
     Goodling
     Gordon
     Graham
     Green
     Gutierrez
     Hall (TX)
     Hayworth
     Hefner
     Hilleary
     Hinchey
     Holden
     Hunter
     Inglis
     Jenkins
     Johnson (WI)
     Jones
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kingston
     Kleczka
     Klink
     Kucinich
     LaFalce
     Lantos
     Largent
     Lewis (GA)
     Lewis (KY)
     Lucas
     Luther
     Maloney (CT)
     Maloney (NY)
     Markey
     Martinez
     Mascara
     McCarthy (MO)
     McDade
     McGovern
     McHale
     McHugh
     McIntosh
     McIntyre
     McNulty
     Meehan
     Miller (CA)
     Mink
     Moakley
     Mollohan
     Moran (KS)
     Murtha
     Myrick
     Nadler
     Neal
     Ney
     Norwood
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pappas
     Pascrell
     Pastor
     Pelosi
     Peterson (MN)
     Pickering
     Pickett
     Pomeroy
     Price (NC)
     Rahall
     Reyes
     Riley
     Rivers
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roybal-Allard
     Rush
     Sanchez
     Sanders
     Sanford
     Sawyer
     Serrano
     Sherman
     Sisisky
     Skelton
     Slaughter
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Stokes
     Strickland
     Stump
     Stupak
     Talent
     Tanner
     Tauzin
     Taylor (MS)
     Thompson
     Thornberry
     Tierney
     Torres
     Traficant
     Velazquez
     Vento
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Weygand
     Wicker
     Woolsey
     Yates

                               NOES--224

     Allen
     Archer
     Armey
     Barrett (NE)
     Bartlett
     Barton
     Bateman
     Bentsen
     Bereuter
     Berman
     Bilbray
     Bilirakis
     Bliley
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Brady
     Brown (FL)
     Buyer
     Calvert
     Camp
     Campbell
     Cannon
     Castle
     Chabot
     Chenoweth
     Christensen
     Cook
     Cox
     Crane
     Crapo
     Cubin
     Cummings
     Davis (FL)
     Davis (IL)
     Davis (VA)
     DeGette
     DeLay
     Diaz-Balart
     Dicks
     Dixon
     Doggett
     Dooley
     Doolittle
     Dreier
     Dunn
     Edwards
     Ehlers
     Ehrlich
     English
     Ensign
     Eshoo
     Ewing
     Fattah
     Fawell
     Fazio
     Foley
     Ford
     Fossella
     Fox
     Franks (NJ)
     Frelinghuysen
     Frost
     Gallegly
     Gekas
     Gilchrest
     Gillmor
     Gilman
     Goss
     Granger
     Greenwood
     Gutknecht
     Hall (OH)
     Hamilton
     Hansen
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hefley
     Herger
     Hill
     Hilliard
     Hinojosa
     Hobson
     Hoekstra
     Hooley
     Horn
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hutchinson
     Hyde
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (CT)
     Johnson, E. B.
     Johnson, Sam
     Kasich
     Kelly
     Kilpatrick
     Kim
     Kind (WI)
     King (NY)
     Klug
     Knollenberg
     Kolbe
     LaHood
     Lampson
     Latham
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (CA)
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Lowey
     Manzullo
     Matsui
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McInnis
     McKeon
     McKinney
     Meek (FL)
     Meeks (NY)
     Menendez
     Metcalf
     Mica
     Millender-McDonald
     Miller (FL)
     Minge
     Moran (VA)
     Morella
     Nethercutt
     Neumann
     Northup
     Nussle
     Owens
     Oxley
     Packard
     Parker
     Paul
     Paxon
     Payne
     Pease
     Peterson (PA)
     Petri
     Pitts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Quinn
     Radanovich
     Ramstad
     Rangel
     Regula
     Riggs
     Roemer
     Rogan
     Rothman
     Roukema
     Royce
     Ryun
     Sabo
     Salmon
     Sandlin
     Saxton
     Scarborough
     Schaefer, Dan
     Schaffer, Bob
     Scott
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Shimkus
     Shuster
     Skaggs
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Snyder
     Souder
     Sununu
     Tauscher
     Taylor (NC)
     Thomas
     Thune
     Thurman
     Tiahrt
     Towns
     Turner
     Upton
     Visclosky
     Walsh
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     White
     Whitfield
     Wise
     Wolf
     Wynn
     Young (AK)
     Young (FL)

                             NOT VOTING--13

     Deutsch
     Furse
     Gonzalez
     Harman
     John
     Manton
     Poshard
     Redmond
     Rodriguez
     Schiff
     Schumer
     Solomon
     Stabenow

                              {time}  1711

  Messrs. CUNNINGHAM, KENNEDY of Rhode Island, CALLAHAN, DICKEY and 
MORAN of Kansas changed their vote from ``no'' to ``aye.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.

[[Page H1084]]

                          personal explanation

  Ms. STABENOW. Mr. Speaker, I missed the vote on rollcall no. 46. On 
the motion to recommit with instructions for H.R. 1432, the African 
Growth and Opportunity Act; has I been present, I would have voted yes.
  (Mr. ARMEY asked and was given permission to speak out of order.)


                          Legislative Program

  Mr. ARMEY. Mr. Speaker, I thank the Members for their attention.
  Mr. Speaker, we have been working with the gentleman from Texas (Mr. 
Smith) and the gentleman from North Carolina (Mr. Watt) about the 
Tucker Act, the bill to be taken up tonight, and we reached an 
arrangement that allows us to inform the Members that we will, on the 
next vote, have the last vote of the evening. There will be general 
debate and some work on the Tucker Act, for those who are interested in 
that, but any votes on the Tucker Act will be postponed until tomorrow.
  So following the next vote, the Members will have had their last vote 
for the evening, and I want to thank the gentleman from Texas (Mr. 
Smith) and the gentleman from North Carolina (Mr. Watt) for their 
cooperation.

                              {time}  1715

  The SPEAKER pro tempore (Mr. Ewing). The question is on the passage 
of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. DICKS. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 233, 
noes 186, not voting 12, as follows:

                             [Roll No. 47]

                               AYES--233

     Ackerman
     Allen
     Archer
     Armey
     Baker
     Barrett (NE)
     Barrett (WI)
     Barton
     Bass
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berman
     Bilbray
     Blagojevich
     Bliley
     Blumenauer
     Boehlert
     Boehner
     Boswell
     Brady
     Brown (FL)
     Calvert
     Camp
     Campbell
     Cannon
     Cardin
     Castle
     Chabot
     Christensen
     Cook
     Cox
     Coyne
     Crane
     Cubin
     Cummings
     Davis (FL)
     Davis (VA)
     DeGette
     DeLay
     Dicks
     Dixon
     Doggett
     Dooley
     Doolittle
     Dreier
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Engel
     English
     Eshoo
     Ewing
     Fattah
     Fawell
     Fazio
     Foley
     Ford
     Fossella
     Fox
     Franks (NJ)
     Frelinghuysen
     Frost
     Gallegly
     Ganske
     Gekas
     Gephardt
     Gilchrest
     Gillmor
     Gilman
     Gingrich
     Goodlatte
     Goss
     Granger
     Gutknecht
     Hall (OH)
     Hamilton
     Hansen
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hayworth
     Herger
     Hill
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoekstra
     Hooley
     Horn
     Houghton
     Hoyer
     Hulshof
     Hutchinson
     Hyde
     Istook
     Jackson-Lee (TX)
     Jefferson
     Johnson (CT)
     Johnson, E. B.
     Johnson, Sam
     Kasich
     Kelly
     Kennedy (MA)
     Kennelly
     Kilpatrick
     Kim
     Kind (WI)
     King (NY)
     Klug
     Knollenberg
     Kolbe
     LaHood
     Lampson
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Linder
     Livingston
     Lofgren
     Lowey
     Luther
     Maloney (NY)
     Manzullo
     Markey
     Martinez
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDade
     McDermott
     McInnis
     McIntosh
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Millender-McDonald
     Miller (FL)
     Minge
     Moran (VA)
     Morella
     Neal
     Nethercutt
     Northup
     Nussle
     Owens
     Oxley
     Packard
     Parker
     Paxon
     Payne
     Pease
     Pelosi
     Peterson (PA)
     Petri
     Pitts
     Pombo
     Pomeroy
     Porter
     Portman
     Pryce (OH)
     Radanovich
     Ramstad
     Rangel
     Regula
     Riggs
     Rivers
     Roemer
     Rogan
     Ros-Lehtinen
     Rothman
     Roukema
     Royce
     Ryun
     Sabo
     Salmon
     Sandlin
     Sawyer
     Scarborough
     Scott
     Sessions
     Shadegg
     Shaw
     Shays
     Shimkus
     Shuster
     Skaggs
     Skeen
     Smith (MI)
     Smith (TX)
     Smith, Adam
     Smith, Linda
     Snowbarger
     Snyder
     Stabenow
     Sununu
     Tauscher
     Tauzin
     Thomas
     Thune
     Thurman
     Tiahrt
     Towns
     Turner
     Upton
     Vento
     Waters
     Watkins
     Watts (OK)
     Waxman
     Weldon (FL)
     Weller
     Wexler
     White
     Wise
     Wolf
     Wynn
     Yates
     Young (FL)

                               NOES--186

     Abercrombie
     Aderholt
     Andrews
     Bachus
     Baesler
     Baldacci
     Ballenger
     Barcia
     Barr
     Bartlett
     Berry
     Bilirakis
     Bishop
     Blunt
     Bonilla
     Bonior
     Borski
     Boucher
     Boyd
     Brown (CA)
     Brown (OH)
     Bryant
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Canady
     Carson
     Chambliss
     Chenoweth
     Clay
     Clayton
     Clement
     Clyburn
     Coble
     Coburn
     Collins
     Combest
     Condit
     Conyers
     Cooksey
     Costello
     Cramer
     Crapo
     Cunningham
     Danner
     Davis (IL)
     Deal
     DeFazio
     Delahunt
     DeLauro
     Diaz-Balart
     Dickey
     Dingell
     Doyle
     Duncan
     Emerson
     Ensign
     Etheridge
     Evans
     Everett
     Farr
     Filner
     Forbes
     Fowler
     Frank (MA)
     Gejdenson
     Gibbons
     Goode
     Goodling
     Gordon
     Graham
     Green
     Greenwood
     Gutierrez
     Hall (TX)
     Hefley
     Hefner
     Hilleary
     Holden
     Hostettler
     Hunter
     Inglis
     Jackson (IL)
     Jenkins
     Johnson (WI)
     Jones
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kingston
     Kleczka
     Klink
     Kucinich
     LaFalce
     Lantos
     Lewis (KY)
     Lipinski
     LoBiondo
     Lucas
     Maloney (CT)
     Mascara
     McGovern
     McHale
     McHugh
     McIntyre
     Metcalf
     Mica
     Miller (CA)
     Mink
     Moakley
     Mollohan
     Moran (KS)
     Murtha
     Myrick
     Nadler
     Neumann
     Ney
     Norwood
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pappas
     Pascrell
     Pastor
     Paul
     Peterson (MN)
     Pickering
     Pickett
     Price (NC)
     Quinn
     Rahall
     Reyes
     Riley
     Rogers
     Rohrabacher
     Roybal-Allard
     Rush
     Sanders
     Sanford
     Saxton
     Schaefer, Dan
     Schaffer, Bob
     Sensenbrenner
     Serrano
     Sherman
     Sisisky
     Skelton
     Slaughter
     Smith (NJ)
     Smith (OR)
     Solomon
     Souder
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Stokes
     Strickland
     Stump
     Stupak
     Talent
     Tanner
     Taylor (MS)
     Taylor (NC)
     Thompson
     Thornberry
     Tierney
     Torres
     Traficant
     Velazquez
     Visclosky
     Walsh
     Wamp
     Watt (NC)
     Weldon (PA)
     Weygand
     Whitfield
     Wicker
     Woolsey
     Young (AK)

                             NOT VOTING--12

     Deutsch
     Furse
     Gonzalez
     Harman
     John
     Manton
     Poshard
     Redmond
     Rodriguez
     Sanchez
     Schiff
     Schumer

                              {time}  1721

  Mr. MARKEY and Mr. BARRETT of Wisconsin changed their vote from 
``no'' to ``aye.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________