[Congressional Record Volume 144, Number 93 (Tuesday, July 14, 1998)]
[Senate]
[Pages S8152-S8159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 TROPICAL FOREST PROTECTION ACT OF 1998

  Mr. ROBERTS. I ask unanimous consent that the Senate proceed to the

[[Page S8153]]

consideration of Calendar No. 420, S. 1758.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1758) to amend the Foreign Assistance Act of 
     1961 to facilitate protection of tropical forests through 
     debt reduction with developing countries with tropical 
     forests.

  There being no objection, the Senate proceeded to consider the 
bill which had been reported from the Committee on Foreign Relations, 
with amendments, as follows:

  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                                S. 1758

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

     SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH 
                   TROPICAL FORESTS.

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

``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS

     ``SEC. 801. SHORT TITLE.

       ``This part may be cited as the `Tropical Forest 
     Conservation Act of 1998'.

     ``SEC. 802. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress finds the following:
       ``(1) It is the established policy of the United States to 
     support and seek protection of tropical forests around the 
     world.
       ``(2) Tropical forests provide a wide range of benefits to 
     humankind by--
       ``(A) harboring a major share of the Earth's biological and 
     terrestrial resources, which are the basis for developing 
     pharmaceutical products and revitalizing agricultural crops;
       ``(B) playing a critical role as carbon sinks in reducing 
     greenhouse gases in the atmosphere, thus moderating potential 
     global climate change; and
       ``(C) regulating hydrological cycles on which far-flung 
     agricultural and coastal resources depend.
       ``(3) International negotiations and assistance programs to 
     conserve forest resources have proliferated over the past 
     decade, but the rapid rate of tropical deforestation 
     continues unabated.
       ``(4) Developing countries with urgent needs for investment 
     and capital for development have allocated a significant 
     amount of their forests to logging concessions.
       ``(5) Poverty and economic pressures on the populations of 
     developing countries have, over time, resulted in clearing of 
     vast areas of forest for conversion to agriculture, which is 
     often unsustainable in the poor soils underlying tropical 
     forests.
       ``(6) Debt reduction can reduce economic pressures on 
     developing countries and result in increased protection for 
     tropical forests.
       ``(7) Finding economic benefits to local communities from 
     sustainable uses of tropical forests is critical to the 
     protection of tropical forests.
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to recognize the values received by United States 
     citizens from protection of tropical forests;
       ``(2) to facilitate greater protection of tropical forests 
     (and to give priority to protecting tropical forests with the 
     highest levels of biodiversity and under the most severe 
     threat) by providing for the alleviation of debt in countries 
     where tropical forests are located, thus allowing the use of 
     additional resources to protect these critical resources and 
     reduce economic pressures that have led to deforestation;
       ``(3) to ensure that resources freed from debt in such 
     countries are targeted to protection of tropical forests and 
     their associated values; and
       ``(4) to rechannel existing resources to facilitate the 
     protection of tropical forests.

     ``SEC. 803. DEFINITIONS.

       ``As used in this part:
       ``(1) Administering body.--The term `administering body' 
     means the entity provided for in section 809(c).
       ``(2) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.
       ``(3) Beneficiary country.--The term `beneficiary country' 
     means an eligible country with respect to which the authority 
     of section 806(a)(1), section 807(a)(1), or paragraph (1) or 
     (2) of section 808(a) is exercised.
       ``(4) Board.--The term `Board' means the board referred to 
     in section 811.
       ``(5) Developing country with a tropical forest.--The term 
     `developing country with a tropical forest' means--
       ``(A)(i) a country that has a per capita income of $725 or 
     less in 1994 United States dollars (commonly referred to as 
     `low-income country'), as determined and adjusted on an 
     annual basis by the International Bank for Reconstruction and 
     Development in its World Development Report; or
       ``(ii) a country that has a per capita income of more than 
     $725 but less than $8,956 in 1994 United States dollars 
     (commonly referred to as `middle-income country'), as 
     determined and adjusted on an annual basis by the 
     International Bank for Reconstruction and Development in its 
     World Development Report; and
       ``(B) a country that contains at least one tropical forest 
     that is globally outstanding in terms of its biological 
     diversity or represents one of the larger intact blocks of 
     tropical forests left, on a continental or global scale.
       ``(6) Eligible country.--The term `eligible country' means 
     a country designated by the President in accordance with 
     section 805.
       ``(7) Tropical forest agreement.--The term `Tropical Forest 
     Agreement' or `Agreement' means a Tropical Forest Agreement 
     provided for in section 809.
       ``(8) Tropical forest facility.--The term `Tropical Forest 
     Facility' or `Facility' means the Tropical Forest Facility 
     established in the Department of the Treasury by section 804.
       ``(9) Tropical forest fund.--The term `Tropical Forest 
     Fund' or `Fund' means a Tropical Forest Fund provided for in 
     section 810.

     ``SEC. 804. ESTABLISHMENT OF THE FACILITY.

       ``There is established in the Department of the Treasury an 
     entity to be known as the `Tropical Forest Facility' for the 
     purpose of providing for the administration of debt reduction 
     in accordance with this part.

     ``SEC. 805. ELIGIBILITY FOR BENEFITS.

       ``(a) In General.--To be eligible for benefits from the 
     Facility under this part, a country shall be a developing 
     country with a tropical forest--
       ``(1) whose government meets the requirements applicable to 
     Latin American or Caribbean countries under paragraphs (1) 
     through (5) and (7) of section 703(a) of this Act; and
       ``(2) that has put in place major investment reforms, as 
     evidenced by the conclusion of a bilateral investment treaty 
     with the United States, implementation of an investment 
     sector loan with the Inter-American Development Bank, World 
     Bank-supported investment reforms, or other measures, as 
     appropriate.
       ``(b) Eligibility Determinations.--
       ``(1) In general.--Consistent with subsection (a), the 
     President shall determine whether a country is eligible to 
     receive benefits under this part.
       ``(2) Congressional notification.--The President shall 
     notify the appropriate congressional committees of his 
     intention to designate a country as an eligible country at 
     least 15 days in advance of any formal determination.

     ``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A 
                   RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN 
                   ASSISTANCE ACT OF 1961.

       ``(a) Authority To Reduce Debt.--
       ``(1) Authority.--The President may reduce the amount owed 
     to the United States (or any agency of the United States) 
     that is outstanding as of January 1, 1998, as a result of 
     concessional loans made to an eligible country by the United 
     States under part I of this Act, chapter 4 of part II of this 
     Act, or predecessor foreign economic assistance legislation.
       ``(2) Authorization of appropriations.--For the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) for the reduction of any debt pursuant to this section, 
     there are authorized to be appropriated to the President--
       ``(A) $25,000,000 for fiscal year 1999;
       ``(B) $75,000,000 for fiscal year 2000; and
       ``(C) $100,000,000 for fiscal year 2001.
       ``(3) Certain prohibitions inapplicable.--
       ``(A) In general.--A reduction of debt pursuant to this 
     section shall not be considered assistance for purposes of 
     any provision of law limiting assistance to a country.
       ``(B) Additional requirement.--The authority of this 
     section may be exercised notwithstanding section 620(r) of 
     this Act or section 321 of the International Development and 
     Food Assistance Act of 1975.
       ``(b) Implementation of Debt Reduction.--
       ``(1) In general.--Any debt reduction pursuant to 
     subsection (a) shall be accomplished at the direction of the 
     Facility by the exchange of a new obligation for obligations 
     of the type referred to in subsection (a) outstanding as of 
     the date specified in subsection (a)(1).
       ``(2) Exchange of obligations.--
       ``(A) In general.--The Facility shall notify the agency 
     primarily responsible for administering part I of this Act of 
     an agreement entered into under paragraph (1) with an 
     eligible country to exchange a new obligation for outstanding 
     obligations.
       ``(B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation for the 
     country shall be established relating to the agreement, and 
     the agency primarily responsible for administering part I of 
     this Act shall make an adjustment in its accounts to reflect 
     the debt reduction.
       ``(c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of debt under subsection (a)(1) in the same manner as such 
     terms and conditions apply to the reduction of debt under 
     section 704(a)(1) of this Act:
       ``(1) The provisions relating to repayment of principal 
     under section 705 of this Act.

[[Page S8154]]

       ``(2) The provisions relating to interest on new 
     obligations under section 706 of this Act.

     ``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A 
                   RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE 
                   AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE 
                   ACT OF 1954.

       ``(a) Authority To Reduce Debt.--
       ``(1) Authority.--Notwithstanding any other provision of 
     law, the President may reduce the amount owed to the United 
     States (or any agency of the United States) that is 
     outstanding as of January 1, 1998, as a result of any credits 
     extended under title I of the Agricultural Trade Development 
     and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a 
     country eligible for benefits from the Facility.
       ``(2) Authorization of appropriations.--For the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) for the reduction of any debt pursuant to this section, 
     there are authorized to be appropriated to the President--
       ``(A) $25,000,000 for fiscal year 1999;
       ``(B) $50,000,000 for fiscal year 2000; and
       ``(C) $50,000,000 for fiscal year 2001.
       ``(b) Implementation of Debt Reduction.--
       ``(1) In general.--Any debt reduction pursuant to 
     subsection (a) shall be accomplished at the direction of the 
     Facility by the exchange of a new obligation for obligations 
     of the type referred to in subsection (a) outstanding as of 
     the date specified in subsection (a)(1).
       ``(2) Exchange of obligations.--
       ``(A) In general.--The Facility shall notify the Commodity 
     Credit Corporation of an agreement entered into under 
     paragraph (1) with an eligible country to exchange a new 
     obligation for outstanding obligations.
       ``(B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation shall 
     be established for the country relating to the agreement, and 
     the Commodity Credit Corporation shall make an adjustment in 
     its accounts to reflect the debt reduction.
       ``(c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of debt under subsection (a)(1) in the same manner as such 
     terms and conditions apply to the reduction of debt under 
     section 604(a)(1) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1738c):
       ``(1) The provisions relating to repayment of principal 
     under section 605 of such Act.
       ``(2) The provisions relating to interest on new 
     obligations under section 606 of such Act.

     ``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND 
                   DEBT BUYBACKS.

       ``(a) Loans and Credits Eligible for Sale, Reduction, or 
     Cancellation.--
       ``(1) Debt-for-nature swaps.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, the President may, in accordance with this section, sell 
     to any eligible purchaser described in subparagraph (B) any 
     concessional loans described in section 806(a)(1) or any 
     credits described in section 807(a)(1), or on receipt of 
     payment from an eligible purchaser described in subparagraph 
     (B), reduce or cancel such loans (or credits) or portion 
     thereof, only for the purpose of facilitating a debt-for-
     nature swap to support eligible activities described in 
     section 809(d).
       ``(B) Eligible purchaser described.--A loan or credit may 
     be sold, reduced, or canceled under subparagraph (A) only to 
     a purchaser who presents plans satisfactory to the President 
     for using the loan or credit for the purpose of engaging in 
     debt-for-nature swaps to support eligible activities 
     described in section 809(d).
       ``(C) Consultation requirement.--Before the sale under 
     subparagraph (A) to any eligible purchaser described in 
     subparagraph (B), or any reduction or cancellation under such 
     subparagraph (A), of any loan or credit made to an eligible 
     country, the President shall consult with the country 
     concerning the amount of loans or credits to be sold, 
     reduced, or canceled and their uses for debt-for-nature swaps 
     to support eligible activities described in section 809(d).
       ``(D) Authorization of appropriations.--For the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) for the reduction of any debt pursuant to subparagraph 
     (A), amounts authorized to appropriated under sections 
     806(a)(2) and 807(a)(2) shall be made available for such 
     reduction of debt pursuant to subparagraph (A).
       ``(2) Debt buybacks.--Notwithstanding any other provision 
     of law, the President may, in accordance with this section, 
     sell to any eligible country any concessional loans described 
     in section 806(a)(1) or any credits described in section 
     807(a)(1), or on receipt of payment from an eligible country, 
     reduce or cancel such loans (or credits) or portion thereof, 
     only for the purpose of facilitating a debt buyback by an 
     eligible country of its own qualified debt, only if the 
     eligible country uses an additional amount of the local 
     currency of the eligible country, equal to not less than 40 
     percent of the price paid for such debt by such eligible 
     country, or the difference between the price paid for such 
     debt and the face value of such debt, to support eligible 
     activities described in section 809(d).
       ``(3) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans and credits may be sold, reduced, or canceled pursuant 
     to this section.
       ``(4) Administration.--
       ``(A) In general.--The Facility shall notify the 
     administrator of the agency primarily responsible for 
     administering part I of this Act or the Commodity Credit 
     Corporation, as the case may be, of eligible purchasers 
     described in paragraph (1)(B) that the President has 
     determined to be eligible under paragraph (1), and shall 
     direct such agency or Corporation, as the case may be, to 
     carry out the sale, reduction, or cancellation of a loan 
     pursuant to such paragraph.
       ``(B) Additional requirement.--Such agency or Corporation, 
     as the case may be, shall make an adjustment in its accounts 
     to reflect the sale, reduction, or cancellation.
       ``(b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.

     ``SEC. 809. TROPICAL FOREST AGREEMENT.

       ``(a) Authority.--
       ``(1) In general.--The Secretary of State is authorized, in 
     consultation with other appropriate officials of the Federal 
     Government, to enter into a Tropical Forest Agreement with 
     any eligible country concerning the operation and use of the 
     Fund for that country.
       ``(2) Consultation.--In the negotiation of such an 
     Agreement, the Secretary shall consult with the Board in 
     accordance with section 811.
       ``(b) Contents of Agreement.--The requirements contained in 
     section 708(b) of this Act (relating to contents of an 
     agreement) shall apply to [a Agreement] an Agreement in the 
     same manner as such requirements apply to an Americas 
     Framework Agreement.
       ``(c) Administering Body.--
       ``(1) In general.--Amounts disbursed from the Fund in each 
     beneficiary country shall be administered by a body 
     constituted under the laws of that country.
       ``(2) Composition.--
       ``(A) In general.--The administering body shall consist 
     of--
       ``(i) one or more individuals appointed by the United 
     States Government;
       ``(ii) one or more individuals appointed by the government 
     of the beneficiary country; and
       ``(iii) individuals who represent a broad range of--

       ``(I) environmental nongovernmental organizations of, or 
     active in, the beneficiary country;
       ``(II) local community development nongovernmental 
     organizations of the beneficiary country; and
       [``(III) scientific or academic organizations or 
     institutions of the beneficiary country.]

       ``(III) scientific, academic, or agroforestry organizations 
     of the beneficiary country.

       ``(B) Additional requirement.--A majority of the members of 
     the administering body shall be individuals described in 
     subparagraph (A)(iii).
       ``(3) Responsibilities.--The requirements contained in 
     section 708(c)(3) of this Act (relating to responsibilities 
     of the administering body) shall apply to an administering 
     body described in paragraph (1) in the same manner as such 
     requirements apply to an administering body described in 
     section 708(c)(1) of this Act.
       ``(d) Eligible Activities.--Amounts deposited in a Fund 
     shall be used to provide grants to preserve, maintain, and 
     restore the tropical forests in the beneficiary country, 
     including one or more of the following activities:
       ``(1) Establishment, restoration, protection, and 
     maintenance of parks, protected areas, and reserves.
       ``(2) Development and implementation of scientifically 
     sound systems of natural resource management, including land 
     and ecosystem management practices.
       ``(3) Training programs to strengthen conservation 
     institutions and increase scientific, technical, and 
     managerial capacities of individuals and organizations 
     involved in conservation efforts.
       ``(4) Restoration, protection, or sustainable use of 
     diverse animal and plant species.
       ``(5) Research and identification of medicinal uses of 
     tropical forest plant life to treat human diseases and 
     illnesses and health related concerns.
       ``[(5)] (6) Mitigation of greenhouse gases in the 
     atmosphere.
       ``[(6)] (7) Development and support of the livelihoods of 
     individuals living in or near a tropical forest, including 
     the cultures of such individuals, in a manner consistent with 
     protecting such tropical forest.
       ``(e) Grant Recipients.--
       ``(1) In general.--Grants made from a Fund shall be made 
     to--
       ``(A) nongovernmental environmental, conservation, and 
     indigenous peoples organizations of, or active in, the 
     beneficiary country;
       ``(B) other appropriate local or regional entities of, or 
     active in, the beneficiary country; [and] or
       ``(C) in exceptional circumstances, the government of the 
     beneficiary country.
       ``(2) Priority.--In providing grants under paragraph (1), 
     priority shall be given to projects that are run by 
     nongovernmental organizations and other private entities and 
     that involve local communities in their planning and 
     execution.
       ``(f) Review of Larger Grants.--Any grant of more than 
     $100,000 from a Fund shall

[[Page S8155]]

     be subject to veto by the Government of the United States or 
     the government of the beneficiary country.
       ``(g) Eligibility Criteria.--In the event that a country 
     ceases to meet the eligibility requirements set forth in 
     section 805(a), as determined by the President pursuant to 
     section 805(b), then grants from the Fund for that country 
     may only be made to nongovernmental organizations until such 
     time as the President determines that such country meets the 
     eligibility requirements set forth in section 805(a).

     ``SEC. 810. TROPICAL FOREST FUND.

       ``(a) Establishment.--Each beneficiary country that enters 
     into a Tropical Forest Agreement under section 809 shall be 
     required to establish a Tropical Forest Fund to receive 
     payments of interest on new obligations undertaken by the 
     beneficiary country under this part.
       ``(b) Requirements Relating to Operation of Fund.--The 
     following terms and conditions shall apply to the Fund in the 
     same manner as such terms as conditions apply to an 
     Enterprise for the Americas Fund under section 707 of this 
     Act:
       ``(1) The provision relating to deposits under subsection 
     (b) of such section.
       ``(2) The provision relating to investments under 
     subsection (c) of such section.
       ``(3) The provision relating to disbursements under 
     subsection (d) of such section.

     ``SEC. 811. BOARD.

       ``(a) Enterprise for the Americas Board.--The Enterprise 
     for the Americas Board established under section 610(a) of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1738i(a)) shall, in addition to carrying out the 
     responsibilities of the Board under section 610(c) of such 
     Act, carry out the duties described in subsection (c) of this 
     section for the purposes of this part.
       ``(b) Additional Membership.--
       ``(1) In general.--The Enterprise for the Americas Board 
     shall be composed of an additional four members appointed by 
     the President as follows:
       ``(A) Two representatives from the United States 
     Government, including a representative of the International 
     Forestry Division of the United States Forest Service.
       ``(B) Two representatives from private nongovernmental 
     environmental, [scientific, and] scientific, agricultural, or 
     academic organizations with experience and expertise in 
     preservation, maintenance, sustainable uses, and restoration 
     of tropical forests.
       ``(2) Chairperson.--Notwithstanding section 610(b)(2) of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board 
     shall be headed by a chairperson who shall be appointed by 
     the President from among the representatives appointed under 
     section 610(b)(1)(A) of such Act or paragraph (1)(A) of this 
     subsection.
       ``(c) Duties.--The duties described in this subsection are 
     as follows:
       ``(1) Advise the Secretary of State on the negotiations of 
     Tropical Forest Agreements.
       ``(2) Ensure, in consultation with--
       ``(A) the government of the beneficiary country,
       ``(B) nongovernmental organizations of the beneficiary 
     country,
       ``(C) nongovernmental organizations of the region (if 
     appropriate),
       ``(D) environmental, scientific, and academic leaders of 
     the beneficiary country, and
       ``(E) environmental, scientific, and academic leaders of 
     the region (as appropriate),
     that a suitable administering body is identified for each 
     Fund.
       ``(3) Review the programs, operations, and fiscal audits of 
     each administering body.

     ``SEC. 812. CONSULTATIONS WITH THE CONGRESS.

       ``The President shall consult with the appropriate 
     congressional committees on a periodic basis to review the 
     operation of the Facility under this part and the eligibility 
     of countries for benefits from the Facility under this part.

     ``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.

       ``(a) In General.--Not later than December 31 of each 
     [fiscal] year, the President shall prepare and transmit to 
     the Congress an annual report concerning the operation of the 
     Facility for the prior fiscal year. Such report shall 
     include--
       ``(1) a description of the activities undertaken by the 
     Facility during the previous fiscal year;
       ``(2) a description of any Agreement entered into under 
     this part;
       ``(3) a report on any Funds that have been established 
     under this part and on the operations of such Funds; and
       ``(4) a description of any grants that have been provided 
     by administering bodies pursuant to Agreements under this 
     part.
       ``(b) Supplemental Views in Annual Report.--Not later than 
     December 15 of each [fiscal] year, each member of the Board 
     shall be entitled to receive a copy of the report required 
     under subsection (a). Each member of the Board may prepare 
     and submit supplemental views to the President on the 
     implementation of this part by December 31 for inclusion in 
     the annual report when it is transmitted to Congress pursuant 
     to this section.''.


                           Amendment No. 3148

         (Purpose: To make technical and clarifying amendments)

  Mr. ROBERTS. Mr. President, there is an amendment at the desk making 
technical changes. I ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The assistant legislative clerk read as follows:

       The Senator from Kansas [Mr. Roberts], for Mr. Helms, for 
     himself, Mr. Biden, and Mr. Lugar, proposes an amendment 
     numbered 3148.

  Mr. ROBERTS. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 6, line 11, strike ``continental'' and insert 
     ``regional, continental,''.
       On page 11, line 7, strike ``For the cost'' and insert the 
     following:
       ``(A) In general.--For the cost''.
       On page 11, line 11, strike ``(A)'' and insert ``(i)''.
       On page 11, line 12, strike ``(B)'' and insert ``(ii)''.
       On page 11, line 13, strike ``(C)'' and insert ``(iii)''.
       On page 11, between lines 13 and 14, insert the following:
       ``(B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost (as defined in section 502(5) of the Federal Credit 
     Reform Act of 1990) of the modification of any debt pursuant 
     to this section are made in advance.
       On page 15, line 2, insert ``the lessor of'' after 
     ``than''.
       On page 15, between lines 6 and 7, insert the following:
       ``(3) Limitation.--The authority provided by paragraphs (1) 
     and (2) shall be available only to the extent that 
     appropriations for the cost (as defined in section 502(5) of 
     the Federal Credit Reform Act of 1990) of the modification of 
     any debt pursuant to such paragraphs are made in advance.
       On page 15, line 7, strike ``(3)'' and insert ``(4)''.
       On page 15, line 12, strike ``(4)'' and insert ``(5)''.
       On page 18, line 2, strike ``agroforestry'' and insert 
     ``forestry''.
       On page 18, line 16, strike ``to provide grants to 
     preserve'' and insert ``only to provide grants to 
     conserve,''.
       On page 18, line 18, strike ``including'' and insert 
     ``through''.
       On page 19, lines 1 and 2, strike ``strengthen conservation 
     institutions and increase'' and insert ``increase the''.
       On page 19, strike lines 10 and 11.
       On page 19, line 12, strike ``(7)'' and insert ``(6)''.
       On page 19, line 14, strike ``, including the cultures of 
     such individuals,''.
       On page 19, line 21, insert ``forestry,'' after 
     ``conservation,''.
       On page 22, line 7, strike ``agricultural'' and insert 
     ``forestry''.
       On page 23, line 5, insert ``forestry,'' after 
     ``scientific,''.
       On page 23, line 7, insert ``forestry,'' after 
     ``scientific,''.

  Mr. LUGAR. Mr. President, there has been a remarkable degree of 
bipartisan cooperation in moving this bill forward. I would like to 
thank Senator Biden, Senator Chafee, and Senator Leahy for their help 
in drafting the Senate bill, which is a companion to H.R. 2870, 
introduced by Representatives Portman, Kasich and Hamilton. I would 
also like to thank my twenty nine additional Senate cosponsors from 
both sides of the aisle for their important support. I would especially 
like to thank Senator Helms for cosponsoring the bill and moving it 
expeditiously through the Committee on Foreign Relations, which 
approved it by voice vote on May 19, 1998.
  Senator Biden and I have worked together on international 
environmental issues for many years. The original debt-for-nature bill 
was the Biden-Lugar Global Environmental Protection Assistance Act of 
1989. This was followed by President Bush's Enterprise for the Americas 
Initiative (EAI), which also linked debt reduction and environmental 
protection in the developing nations of Latin America and the 
Caribbean.
  S. 1758, the Tropical Forest Conservation Act, allows lower and 
middle income developing countries to reduce certain debts owed to the 
U.S. Government under the Foreign Assistance Act and the Agricultural 
Trade and Development Assistance Act. In return, they must place local 
currencies in a tropical forest fund to protect outstanding tropical 
forests in their own country.
  The tropical forest fund in each country would be administered by a 
local board. These boards would be comprised of representatives of its 
government, our government and environmental, community development, 
forestry, scientific and academic organizations with expertise in the 
protection of tropical forests. A majority of the

[[Page S8156]]

local board would have to represent these nongovernmental 
organizations. Oversight would be accomplished through expanding the 
Enterprise for the Americas Board to fifteen members, with eight 
members representing federal agencies and seven representing 
nongovernmental organizations with expertise in the protection of 
tropical forests. All grants of more than $100,000 would have to be 
approved by this Board.
  The United States has a strong interest in helping to protect 
tropical forests in developing countries. Our world food security 
depends on tropical forests, which provide genetic materials to enhance 
world food production and which regulate the hydrological cycles on 
which world agriculture depends. The fight against cancer depends upon 
plants in tropical forests. Tropical forests also store carbon, 
mitigating the build up of greenhouse gas concentrations in the 
atmosphere.
  I urge the Senate to support S. 1758 along with the technical and 
clarifying amendments which Senator Helms, Senator Biden and I have 
offered to the Committee reported bill.
  Mr. BIDEN. Mr. President, I join with my friend, the distinguished 
senior Senator from Indiana, to urge my colleagues to support the 
Tropical Forest Protection Act of 1998.
  Mr. President, this bill marks a real victory for sensible, 
bipartisan action on an issue of global importance. Just looking at the 
list of our cosponsors--thirty-one of our colleagues, evenly divided 
between our two parties--shows me that good policy is good politics.
  Right now, as we speak today, fires are burning in tropical forests 
around the world, the result of a combustible mix of unusually dry 
weather with unsustainable human activity. Slash-and-burn agriculture, 
logging, and the road cuts to support those activities, have exposed 
one of our planet's most important resources to a deadly threat.
  Rainforests have a profound effect on our planet's weather, through 
their ability to absorb the most important greenhouse gas, carbon 
dioxide. They influence rainfall, and are therefore the sources of many 
of our most important rivers, that in turn support the farms and 
fisheries that feed us.
  They are home to rich biological diversity--both flora and fauna--
that we are just now realizing hold the secret to disease-resistant 
crops and new medicines.
  But as the nations that contain our most significant rainforests 
enter the world economy, they are under increasing pressure to turn 
these irreplaceable assets into cash, for both their own short-term 
domestic needs and to service debts owed to the industrial nations, 
including the United States.
  That's why this bill is so important. It allows the reduction of the 
debt those nations owe us, if they use the savings to protect those 
rainforests. This will help to break the tie between debt and the 
destruction of rainforests, to the benefit of everyone. It won't put 
out those fires, but it will remove some of the financial arrangements 
that fuel them.
  I am particularly pleased to join again with my friend, Senator 
Lugar, to expand on earlier Lugar-Biden legislation that has been on 
the books since 1989, and that is part of the 1990 Enterprise for the 
Americas Initiative.
  And I am honored to be joined in this effort by the distinguished 
Chairman of the Foreign Relations Committee, the distinguished Chairman 
of the Environment and Public Works Committee, and so many other of our 
colleagues on both sides of the aisle.
  Thank you, Mr. President.
  Mr. CHAFEE. Mr. President I am pleased to be here today with my 
distinguished colleagues to offer my support for the Tropical Forest 
Conservation Act of 1998. This bipartisan legislation addresses one of 
the most important global environmental issues today--the protection 
and preservation of tropical rain forests.
  Since 1950 the world has lost as much as half of its tropical 
forests, and the destruction is continuing unabated. The most 
comprehensive survey of global deforestation estimated that, last year 
alone, we lost more than 30 million acres of tropical rain forest--an 
area the size of the State of Washington. This is a devastating loss 
because of the potential biological impacts deforestation can have both 
regionally and globally.
  Tropical forests contain the world's richest stores of biological 
diversity, and their health is essential for life on Earth. Scientists 
estimate that more than 50 percent of the Earth's terrestrial 
biological diversity is contained within these forests, which account 
for less than 2 percent of the planet's land surface. Almost 40 percent 
of all terrestrial plants and at least 25 percent of terrestrial 
vertebrate species are endemic to these areas. Many of these species 
are found only in a small area of the forests. And as the forests are 
destroyed, Mr. President, the species are permanently lost through 
extinction.
  Tropical forests also function as carbon ``sinks,'' storing 
greenhouse gasses that could otherwise contribute to global climate 
change. While there are still many scientific uncertainties related to 
climate change, it is undeniable that atmospheric carbon dioxide levels 
are rising rapidly. A significant number of scientists believe that 
humans have already influenced our global climate. In order to lessen 
the risks associated with this change, such as sea level rise, extreme 
weather conditions, and higher average temperatures, it is important 
that the United States join with other nations to take preventative 
action. Protecting our tropical rain forests, and thus preserving their 
vital function of reducing greenhouse gases in the atmosphere, is one 
such action.
  Many of the world's tropical forests are located in developing 
countries that, since the international debt crisis of the 1970s, have 
been unable to repay loans to foreign lenders. These countries are in 
need of hard currency, and to come up with cash, they have resorted to 
exploiting their natural resources with little regard for environmental 
planning. Vast areas of tropical forests are destroyed each year for 
logging, agriculture and livestock operations. This trend will continue 
as debt continues to mount.
  Mr. President, the Tropical Forest Conservation Act will help turn 
the tide against this deforestation. This legislation builds upon 
President Bush's Enterprise for the Americas Initiative, or EAI. EAI 
created a system by which Latin American and Carribean governments 
could restructure some of their official debt to the United States, 
while channeling local currency into funds to support environmental and 
child development programs.
  Using so-called ``debt-for-nature swaps,'' EAI restructured bilateral 
debt to provide $154 million to environmental trust funds in Latin 
America. Under these swaps, a nation's debt is modified, rescheduled, 
or written off, in return for the borrower nation's commitment of its 
own currency towards local conservation. The legislation before us 
today would extend the debt-for-nature mechanism of the EAI to the 
protection of significant tropical forests in lower and middle income 
countries throughout the world, not just those in Latin America and the 
Caribbean.
  The Tropical Forest Conservation Act will authorize $325 million over 
three years to be used for debt-for-nature swaps with developing 
countries that have forests with the greatest biodiversity and the 
highest risk of threat. S. 1758 assists countries with tropical forests 
that are globally outstanding in terms of their biodiversity, and 
applies to any lesser developed country with tropical forests and 
qualified U.S. debt. The authorized amount would be used to compensate 
the Treasury Department for any revenues lost due to the restructuring 
of outstanding debt.
  The legislation gives the President authority to reduce debt owed to 
the United States as a result of any credit extended through specific 
loan programs. In exchange, the developing countries would establish 
funds in their local currency to preserve and restore tropical forests. 
To ensure accountability, funds shall be administered and overseen by 
U.S. Government officials, environmental nongovernmental organizations 
active in the beneficiary country, and scientific or academic 
organizations.
  To qualify for assistance, countries must meet the criteria 
established by Congress under EAI, including that the government must 
be democratically elected, has not provided support for acts of 
international terrorism, is not failing to cooperate on international

[[Page S8157]]

narcotics control matters, and does not participate in a consistent 
pattern of gross violations of internationally recognized human rights.
  Mr. President, I believe this is an important bill that will go a 
long way in helping protect some of the world's most ecologically 
sensitive and vital areas. The Tropical Forest Conservation Act 
promotes debt reduction, investment reforms, community based 
conservation and sustainable use of the environment. In addition, it 
stretches limited Federal dollars making an effective use of 
international environmental assistance. I urge my colleagues here in 
the Senate to support S. 1758.
  Mr. ROBERTS. Mr. President, I ask unanimous consent the amendment be 
considered and agreed to, the committee amendments be agreed to, and 
the bill be read a third time.
  The amendment (No. 3148) was agreed to.
  The Committee amendments were agreed to.
  The bill (S. 1758) was read the third time.
  Mr. ROBERTS. I further ask unanimous consent that the Foreign 
Relations Committee be discharged from further consideration of H.R. 
2870, that the Senate proceed to its immediate consideration, and all 
after the enacting clause be stricken and the text of S. 1758, as 
amended, be inserted in lieu thereof. I further ask unanimous consent 
that the bill be read a third time, passed, and the motion to 
reconsider be laid upon the table, and, finally, S. 1758 be placed back 
on the calendar.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 2870), as amended, was considered read the third time 
and passed, as follows:

       Resolved, That the bill from the House of Representatives 
     (H.R. 2870) entitled ``An Act to amend the Foreign Assistance 
     Act of 1961 to facilitate protection of tropical forests 
     through debt reduction with developing countries with 
     tropical forests.'', do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH 
                   TROPICAL FORESTS.

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

``PART V--DEBT REDUCTION FOR DEVELOPING COUNTRIES WITH TROPICAL FORESTS

     ``SEC. 801. SHORT TITLE.

       ``This part may be cited as the `Tropical Forest 
     Conservation Act of 1998'.

     ``SEC. 802. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress finds the following:
       ``(1) It is the established policy of the United States to 
     support and seek protection of tropical forests around the 
     world.
       ``(2) Tropical forests provide a wide range of benefits to 
     humankind by--
       ``(A) harboring a major share of the Earth's biological and 
     terrestrial resources, which are the basis for developing 
     pharmaceutical products and revitalizing agricultural crops;
       ``(B) playing a critical role as carbon sinks in reducing 
     greenhouse gases in the atmosphere, thus moderating potential 
     global climate change; and
       ``(C) regulating hydrological cycles on which far-flung 
     agricultural and coastal resources depend.
       ``(3) International negotiations and assistance programs to 
     conserve forest resources have proliferated over the past 
     decade, but the rapid rate of tropical deforestation 
     continues unabated.
       ``(4) Developing countries with urgent needs for investment 
     and capital for development have allocated a significant 
     amount of their forests to logging concessions.
       ``(5) Poverty and economic pressures on the populations of 
     developing countries have, over time, resulted in clearing of 
     vast areas of forest for conversion to agriculture, which is 
     often unsustainable in the poor soils underlying tropical 
     forests.
       ``(6) Debt reduction can reduce economic pressures on 
     developing countries and result in increased protection for 
     tropical forests.
       ``(7) Finding economic benefits to local communities from 
     sustainable uses of tropical forests is critical to the 
     protection of tropical forests.
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to recognize the values received by United States 
     citizens from protection of tropical forests;
       ``(2) to facilitate greater protection of tropical forests 
     (and to give priority to protecting tropical forests with the 
     highest levels of biodiversity and under the most severe 
     threat) by providing for the alleviation of debt in countries 
     where tropical forests are located, thus allowing the use of 
     additional resources to protect these critical resources and 
     reduce economic pressures that have led to deforestation;
       ``(3) to ensure that resources freed from debt in such 
     countries are targeted to protection of tropical forests and 
     their associated values; and
       ``(4) to rechannel existing resources to facilitate the 
     protection of tropical forests.

     ``SEC. 803. DEFINITIONS.

       ``As used in this part:
       ``(1) Administering body.--The term `administering body' 
     means the entity provided for in section 809(c).
       ``(2) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.
       ``(3) Beneficiary country.--The term `beneficiary country' 
     means an eligible country with respect to which the authority 
     of section 806(a)(1), section 807(a)(1), or paragraph (1) or 
     (2) of section 808(a) is exercised.
       ``(4) Board.--The term `Board' means the board referred to 
     in section 811.
       ``(5) Developing country with a tropical forest.--The term 
     `developing country with a tropical forest' means--
       ``(A)(i) a country that has a per capita income of $725 or 
     less in 1994 United States dollars (commonly referred to as 
     `low-income country'), as determined and adjusted on an 
     annual basis by the International Bank for Reconstruction and 
     Development in its World Development Report; or
       ``(ii) a country that has a per capita income of more than 
     $725 but less than $8,956 in 1994 United States dollars 
     (commonly referred to as `middle-income country'), as 
     determined and adjusted on an annual basis by the 
     International Bank for Reconstruction and Development in its 
     World Development Report; and
       ``(B) a country that contains at least one tropical forest 
     that is globally outstanding in terms of its biological 
     diversity or represents one of the larger intact blocks of 
     tropical forests left, on a regional, continental, or global 
     scale.
       ``(6) Eligible country.--The term `eligible country' means 
     a country designated by the President in accordance with 
     section 805.
       ``(7) Tropical forest agreement.--The term `Tropical Forest 
     Agreement' or `Agreement' means a Tropical Forest Agreement 
     provided for in section 809.
       ``(8) Tropical forest facility.--The term `Tropical Forest 
     Facility' or `Facility' means the Tropical Forest Facility 
     established in the Department of the Treasury by section 804.
       ``(9) Tropical forest fund.--The term `Tropical Forest 
     Fund' or `Fund' means a Tropical Forest Fund provided for in 
     section 810.

     ``SEC. 804. ESTABLISHMENT OF THE FACILITY.

       ``There is established in the Department of the Treasury an 
     entity to be known as the `Tropical Forest Facility' for the 
     purpose of providing for the administration of debt reduction 
     in accordance with this part.

     ``SEC. 805. ELIGIBILITY FOR BENEFITS.

       ``(a) In General.--To be eligible for benefits from the 
     Facility under this part, a country shall be a developing 
     country with a tropical forest--
       ``(1) whose government meets the requirements applicable to 
     Latin American or Caribbean countries under paragraphs (1) 
     through (5) and (7) of section 703(a) of this Act; and
       ``(2) that has put in place major investment reforms, as 
     evidenced by the conclusion of a bilateral investment treaty 
     with the United States, implementation of an investment 
     sector loan with the Inter-American Development Bank, World 
     Bank-supported investment reforms, or other measures, as 
     appropriate.
       ``(b) Eligibility Determinations.--
       ``(1) In general.--Consistent with subsection (a), the 
     President shall determine whether a country is eligible to 
     receive benefits under this part.
       ``(2) Congressional notification.--The President shall 
     notify the appropriate congressional committees of his 
     intention to designate a country as an eligible country at 
     least 15 days in advance of any formal determination.

     ``SEC. 806. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A 
                   RESULT OF CONCESSIONAL LOANS UNDER THE FOREIGN 
                   ASSISTANCE ACT OF 1961.

       ``(a) Authority To Reduce Debt.--
       ``(1) Authority.--The President may reduce the amount owed 
     to the United States (or any agency of the United States) 
     that is outstanding as of January 1, 1998, as a result of 
     concessional loans made to an eligible country by the United 
     States under part I of this Act, chapter 4 of part II of this 
     Act, or predecessor foreign economic assistance legislation.
       ``(2) Authorization of appropriations.--For the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) for the reduction of any debt pursuant to this section, 
     there are authorized to be appropriated to the President--
       ``(A) $25,000,000 for fiscal year 1999;
       ``(B) $75,000,000 for fiscal year 2000; and
       ``(C) $100,000,000 for fiscal year 2001.
       ``(3) Certain prohibitions inapplicable.--
       ``(A) In general.--A reduction of debt pursuant to this 
     section shall not be considered assistance for purposes of 
     any provision of law limiting assistance to a country.
       ``(B) Additional requirement.--The authority of this 
     section may be exercised notwithstanding section 620(r) of 
     this Act or section 321 of the International Development and 
     Food Assistance Act of 1975.
       ``(b) Implementation of Debt Reduction.--
       ``(1) In general.--Any debt reduction pursuant to 
     subsection (a) shall be accomplished at the direction of the 
     Facility by the exchange of a new obligation for obligations 
     of the type referred to in subsection (a) outstanding as of 
     the date specified in subsection (a)(1).
       ``(2) Exchange of obligations.--
       ``(A) In general.--The Facility shall notify the agency 
     primarily responsible for administering part I of this Act of 
     an agreement entered into under paragraph (1) with an 
     eligible country to exchange a new obligation for outstanding 
     obligations.

[[Page S8158]]

       ``(B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation for the 
     country shall be established relating to the agreement, and 
     the agency primarily responsible for administering part I of 
     this Act shall make an adjustment in its accounts to reflect 
     the debt reduction.
       ``(c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of debt under subsection (a)(1) in the same manner as such 
     terms and conditions apply to the reduction of debt under 
     section 704(a)(1) of this Act:
       ``(1) The provisions relating to repayment of principal 
     under section 705 of this Act.
       ``(2) The provisions relating to interest on new 
     obligations under section 706 of this Act.

     ``SEC. 807. REDUCTION OF DEBT OWED TO THE UNITED STATES AS A 
                   RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE 
                   AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE 
                   ACT OF 1954.

       ``(a) Authority To Reduce Debt.--
       ``(1) Authority.--Notwithstanding any other provision of 
     law, the President may reduce the amount owed to the United 
     States (or any agency of the United States) that is 
     outstanding as of January 1, 1998, as a result of any credits 
     extended under title I of the Agricultural Trade Development 
     and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to a 
     country eligible for benefits from the Facility.
       ``(2) Authorization of appropriations.--
       ``(A) In general.--For the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990) for the 
     reduction of any debt pursuant to this section, there are 
     authorized to be appropriated to the President--
       ``(i) $25,000,000 for fiscal year 1999;
       ``(ii) $50,000,000 for fiscal year 2000; and
       ``(iii) $50,000,000 for fiscal year 2001.
       ``(B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost (as defined in section 502(5) of the Federal Credit 
     Reform Act of 1990) of the modification of any debt pursuant 
     to this section are made in advance.
       ``(b) Implementation of Debt Reduction.--
       ``(1) In general.--Any debt reduction pursuant to 
     subsection (a) shall be accomplished at the direction of the 
     Facility by the exchange of a new obligation for obligations 
     of the type referred to in subsection (a) outstanding as of 
     the date specified in subsection (a)(1).
       ``(2) Exchange of obligations.--
       ``(A) In general.--The Facility shall notify the Commodity 
     Credit Corporation of an agreement entered into under 
     paragraph (1) with an eligible country to exchange a new 
     obligation for outstanding obligations.
       ``(B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation shall 
     be established for the country relating to the agreement, and 
     the Commodity Credit Corporation shall make an adjustment in 
     its accounts to reflect the debt reduction.
       ``(c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of debt under subsection (a)(1) in the same manner as such 
     terms and conditions apply to the reduction of debt under 
     section 604(a)(1) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1738c):
       ``(1) The provisions relating to repayment of principal 
     under section 605 of such Act.
       ``(2) The provisions relating to interest on new 
     obligations under section 606 of such Act.

     ``SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND 
                   DEBT BUYBACKS.

       ``(a) Loans and Credits Eligible for Sale, Reduction, or 
     Cancellation.--
       ``(1) Debt-for-nature swaps.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, the President may, in accordance with this section, sell 
     to any eligible purchaser described in subparagraph (B) any 
     concessional loans described in section 806(a)(1) or any 
     credits described in section 807(a)(1), or on receipt of 
     payment from an eligible purchaser described in subparagraph 
     (B), reduce or cancel such loans (or credits) or portion 
     thereof, only for the purpose of facilitating a debt-for-
     nature swap to support eligible activities described in 
     section 809(d).
       ``(B) Eligible purchaser described.--A loan or credit may 
     be sold, reduced, or canceled under subparagraph (A) only to 
     a purchaser who presents plans satisfactory to the President 
     for using the loan or credit for the purpose of engaging in 
     debt-for-nature swaps to support eligible activities 
     described in section 809(d).
       ``(C) Consultation requirement.--Before the sale under 
     subparagraph (A) to any eligible purchaser described in 
     subparagraph (B), or any reduction or cancellation under such 
     subparagraph (A), of any loan or credit made to an eligible 
     country, the President shall consult with the country 
     concerning the amount of loans or credits to be sold, 
     reduced, or canceled and their uses for debt-for-nature swaps 
     to support eligible activities described in section 809(d).
       ``(D) Authorization of appropriations.--For the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) for the reduction of any debt pursuant to subparagraph 
     (A), amounts authorized to appropriated under sections 
     806(a)(2) and 807(a)(2) shall be made available for such 
     reduction of debt pursuant to subparagraph (A).
       ``(2) Debt buybacks.--Notwithstanding any other provision 
     of law, the President may, in accordance with this section, 
     sell to any eligible country any concessional loans described 
     in section 806(a)(1) or any credits described in section 
     807(a)(1), or on receipt of payment from an eligible country, 
     reduce or cancel such loans (or credits) or portion thereof, 
     only for the purpose of facilitating a debt buyback by an 
     eligible country of its own qualified debt, only if the 
     eligible country uses an additional amount of the local 
     currency of the eligible country, equal to not less than the 
     lessor of 40 percent of the price paid for such debt by such 
     eligible country, or the difference between the price paid 
     for such debt and the face value of such debt, to support 
     eligible activities described in section 809(d).
       ``(3) Limitation.--The authority provided by paragraphs (1) 
     and (2) shall be available only to the extent that 
     appropriations for the cost (as defined in section 502(5) of 
     the Federal Credit Reform Act of 1990) of the modification of 
     any debt pursuant to such paragraphs are made in advance.
       ``(4) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans and credits may be sold, reduced, or canceled pursuant 
     to this section.
       ``(5) Administration.--
       ``(A) In general.--The Facility shall notify the 
     administrator of the agency primarily responsible for 
     administering part I of this Act or the Commodity Credit 
     Corporation, as the case may be, of eligible purchasers 
     described in paragraph (1)(B) that the President has 
     determined to be eligible under paragraph (1), and shall 
     direct such agency or Corporation, as the case may be, to 
     carry out the sale, reduction, or cancellation of a loan 
     pursuant to such paragraph.
       ``(B) Additional requirement.--Such agency or Corporation, 
     as the case may be, shall make an adjustment in its accounts 
     to reflect the sale, reduction, or cancellation.
       ``(b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.

     ``SEC. 809. TROPICAL FOREST AGREEMENT.

       ``(a) Authority.--
       ``(1) In general.--The Secretary of State is authorized, in 
     consultation with other appropriate officials of the Federal 
     Government, to enter into a Tropical Forest Agreement with 
     any eligible country concerning the operation and use of the 
     Fund for that country.
       ``(2) Consultation.--In the negotiation of such an 
     Agreement, the Secretary shall consult with the Board in 
     accordance with section 811.
       ``(b) Contents of Agreement.--The requirements contained in 
     section 708(b) of this Act (relating to contents of an 
     agreement) shall apply to an Agreement in the same manner as 
     such requirements apply to an Americas Framework Agreement.
       ``(c) Administering Body.--
       ``(1) In general.--Amounts disbursed from the Fund in each 
     beneficiary country shall be administered by a body 
     constituted under the laws of that country.
       ``(2) Composition.--
       ``(A) In general.--The administering body shall consist 
     of--
       ``(i) one or more individuals appointed by the United 
     States Government;
       ``(ii) one or more individuals appointed by the government 
     of the beneficiary country; and
       ``(iii) individuals who represent a broad range of--

       ``(I) environmental nongovernmental organizations of, or 
     active in, the beneficiary country;
       ``(II) local community development nongovernmental 
     organizations of the beneficiary country; and
       ``(III) scientific, academic, or forestry organizations of 
     the beneficiary country.

       ``(B) Additional requirement.--A majority of the members of 
     the administering body shall be individuals described in 
     subparagraph (A)(iii).
       ``(3) Responsibilities.--The requirements contained in 
     section 708(c)(3) of this Act (relating to responsibilities 
     of the administering body) shall apply to an administering 
     body described in paragraph (1) in the same manner as such 
     requirements apply to an administering body described in 
     section 708(c)(1) of this Act.
       ``(d) Eligible Activities.--Amounts deposited in a Fund 
     shall be used only to provide grants to conserve, maintain, 
     and restore the tropical forests in the beneficiary country, 
     through one or more of the following activities:
       ``(1) Establishment, restoration, protection, and 
     maintenance of parks, protected areas, and reserves.
       ``(2) Development and implementation of scientifically 
     sound systems of natural resource management, including land 
     and ecosystem management practices.
       ``(3) Training programs to increase the scientific, 
     technical, and managerial capacities of individuals and 
     organizations involved in conservation efforts.
       ``(4) Restoration, protection, or sustainable use of 
     diverse animal and plant species.
       ``(5) Research and identification of medicinal uses of 
     tropical forest plant life to treat human diseases and 
     illnesses and health related concerns.
       ``(6) Development and support of the livelihoods of 
     individuals living in or near a tropical forest in a manner 
     consistent with protecting such tropical forest.
       ``(e) Grant Recipients.--
       ``(1) In general.--Grants made from a Fund shall be made 
     to--
       ``(A) nongovernmental environmental, forestry, 
     conservation, and indigenous peoples organizations of, or 
     active in, the beneficiary country;
       ``(B) other appropriate local or regional entities of, or 
     active in, the beneficiary country; or
       ``(C) in exceptional circumstances, the government of the 
     beneficiary country.

[[Page S8159]]

       ``(2) Priority.--In providing grants under paragraph (1), 
     priority shall be given to projects that are run by 
     nongovernmental organizations and other private entities and 
     that involve local communities in their planning and 
     execution.
       ``(f) Review of Larger Grants.--Any grant of more than 
     $100,000 from a Fund shall be subject to veto by the 
     Government of the United States or the government of the 
     beneficiary country.
       ``(g) Eligibility Criteria.--In the event that a country 
     ceases to meet the eligibility requirements set forth in 
     section 805(a), as determined by the President pursuant to 
     section 805(b), then grants from the Fund for that country 
     may only be made to nongovernmental organizations until such 
     time as the President determines that such country meets the 
     eligibility requirements set forth in section 805(a).

     ``SEC. 810. TROPICAL FOREST FUND.

       ``(a) Establishment.--Each beneficiary country that enters 
     into a Tropical Forest Agreement under section 809 shall be 
     required to establish a Tropical Forest Fund to receive 
     payments of interest on new obligations undertaken by the 
     beneficiary country under this part.
       ``(b) Requirements Relating to Operation of Fund.--The 
     following terms and conditions shall apply to the Fund in the 
     same manner as such terms as conditions apply to an 
     Enterprise for the Americas Fund under section 707 of this 
     Act:
       ``(1) The provision relating to deposits under subsection 
     (b) of such section.
       ``(2) The provision relating to investments under 
     subsection (c) of such section.
       ``(3) The provision relating to disbursements under 
     subsection (d) of such section.

     ``SEC. 811. BOARD.

       ``(a) Enterprise for the Americas Board.--The Enterprise 
     for the Americas Board established under section 610(a) of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1738i(a)) shall, in addition to carrying out the 
     responsibilities of the Board under section 610(c) of such 
     Act, carry out the duties described in subsection (c) of this 
     section for the purposes of this part.
       ``(b) Additional Membership.--
       ``(1) In general.--The Enterprise for the Americas Board 
     shall be composed of an additional four members appointed by 
     the President as follows:
       ``(A) Two representatives from the United States 
     Government, including a representative of the International 
     Forestry Division of the United States Forest Service.
       ``(B) Two representatives from private nongovernmental 
     environmental, scientific, forestry, or academic 
     organizations with experience and expertise in preservation, 
     maintenance, sustainable uses, and restoration of tropical 
     forests.
       ``(2) Chairperson.--Notwithstanding section 610(b)(2) of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board 
     shall be headed by a chairperson who shall be appointed by 
     the President from among the representatives appointed under 
     section 610(b)(1)(A) of such Act or paragraph (1)(A) of this 
     subsection.
       ``(c) Duties.--The duties described in this subsection are 
     as follows:
       ``(1) Advise the Secretary of State on the negotiations of 
     Tropical Forest Agreements.
       ``(2) Ensure, in consultation with--
       ``(A) the government of the beneficiary country,
       ``(B) nongovernmental organizations of the beneficiary 
     country,
       ``(C) nongovernmental organizations of the region (if 
     appropriate),
       ``(D) environmental, scientific, forestry, and academic 
     leaders of the beneficiary country, and
       ``(E) environmental, scientific, forestry, and academic 
     leaders of the region (as appropriate),

     that a suitable administering body is identified for each 
     Fund.
       ``(3) Review the programs, operations, and fiscal audits of 
     each administering body.

     ``SEC. 812. CONSULTATIONS WITH THE CONGRESS.

       ``The President shall consult with the appropriate 
     congressional committees on a periodic basis to review the 
     operation of the Facility under this part and the eligibility 
     of countries for benefits from the Facility under this part.

     ``SEC. 813. ANNUAL REPORTS TO THE CONGRESS.

       ``(a) In General.--Not later than December 31 of each year, 
     the President shall prepare and transmit to the Congress an 
     annual report concerning the operation of the Facility for 
     the prior fiscal year. Such report shall include--
       ``(1) a description of the activities undertaken by the 
     Facility during the previous fiscal year;
       ``(2) a description of any Agreement entered into under 
     this part;
       ``(3) a report on any Funds that have been established 
     under this part and on the operations of such Funds; and
       ``(4) a description of any grants that have been provided 
     by administering bodies pursuant to Agreements under this 
     part.
       ``(b) Supplemental Views in Annual Report.--Not later than 
     December 15 of each year, each member of the Board shall be 
     entitled to receive a copy of the report required under 
     subsection (a). Each member of the Board may prepare and 
     submit supplemental views to the President on the 
     implementation of this part by December 31 for inclusion in 
     the annual report when it is transmitted to Congress pursuant 
     to this section.''.

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