[Congressional Record Volume 144, Number 94 (Wednesday, July 15, 1998)]
[House]
[Pages H5507-H5511]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
[[Page H5507]]
TROPICAL FOREST CONSERVATION ACT OF 1998
Mr. GILMAN. Mr. Speaker, I ask unanimous consent to take from the
Speaker's table the bill (H.R. 2870) to amend the Foreign Assistance
Act of 1961 to facilitate protection of tropical forests through debt
reduction with developing countries with tropical forests, with a
Senate amendment thereto, and concur in the Senate amendment.
The Clerk read the title of the bill.
The Clerk read the Senate amendment, as follows:
Senate 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.
``(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
[[Page H5508]]
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.
``(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.
[[Page H5509]]
``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.''.
Mr. GILMAN (during the reading). Mr. Speaker, I ask unanimous consent
that the Senate amendment be considered as read and printed in the
Record.
The SPEAKER pro tempore (Mr. Ewing). Is there objection to the
request of the gentleman from New York?
There was no objection.
The SPEAKER pro tempore. Is there objection to the original request
of the gentleman from New York?
Mr. PORTMAN. Mr. Speaker, reserving the right to object, I yield to
the gentleman from New York (Mr. Gilman), to explain the measure.
Mr. GILMAN. Mr. Speaker, I thank the gentleman from Ohio for yielding
to me.
Mr. Speaker, this measure was introduced last November by the
gentlemen from Ohio, Mr. Portman and Mr. Kasich, and the gentleman from
Indiana (Mr. Hamilton). The bill enjoys wide bipartisan support and is
supported by the administration.
Mr. Speaker, tropical forests are home to roughly half of all known
species of plants and animals. Under pressure from man, these forests
are disappearing at rate of almost 1 percent per year, roughly 1
football field lost every second, or an area the size of Pennsylvania
each year.
Most of these forests are also located in developing countries, and
most of these countries are poor, with crushing debt burdens. In short,
this bill authorizes the President to offer up to $325 million in debt
owed to our government by the developing nations, a small fraction of
the $15 billion they currently owe. The loans were made by the Agency
for International Development and the Department of Agriculture.
The bill specifically references the conditions for the government to
obtain such debt relief. These conditions include having a democratic
government, a favorable climate for private sector investment,
cooperation on narcotics matters, and no State-sponsored terrorism.
The bill enjoys wide support from environmental groups, such groups
as the World Wildlife Fund, Conservation International, The Nature
Conservancy, the Environmental Defense Fund, and the Sierra Club.
The Senate passed H.R. 2870 with a number of technical changes and
clarifying amendments.
First, the Senate restored provisions of importance to the House
after the Senate companion bill was reported from the Senate Foreign
Relations Committee and before the Senate passed the House bill, as
amended.
These include insuring, one, tropical forests that are important on a
regional basis may be protected under the bill, and secondly, one of
the eligible activities under the bill is research and identification
of medicinal uses of tropical forest plant life to treat human
diseases.
In sum, the Senate amendments also accomplish the following four
objectives:
First, they made a number of changes to ensure that the funds for
this program are used only to conserve and protect tropical forests
through a specific list of eligible activities that were enumerated in
the House bill but were tightened up in the Senate.
Secondly, they deleted the requirement that a Nation have a minimal
level of environmental policies and practices in place to qualify for
its eligibility. The Senate noted that the administration should have
flexibility in administering the program, and that one of the purposes
of the Act was to encourage such policies and practices.
Third, they made forestry organizations with expertise in conserving
tropical forests part of the local administering bodies and board
overseeing this program, including a representative of the
International Forestry Division of the U.S. Forest Service.
Fourth, they deleted a House provision requiring the President to
notify congressional committees 15 days in advance of debt reduction,
in exchange for the letter agreement by the Treasury Department to give
the authorizing committees the same notification they currently give
the Committee on Appropriations with respect to debt reduction
transactions.
This has the benefit of standardizing procedures so that the
administrative burden at the Treasury Department will not be increased.
Congress can give Treasury early notification of countries that are
suspect for such transactions, and Congress will receive more
information about these transactions than it does now. I also note our
support for debt relief to Bangladesh under this bill.
I urge support for the bill, and I commend the gentleman from Ohio
(Mr. Portman), the gentleman from Indiana (Mr. Hamilton), and the
gentleman from Ohio (Mr. Kasich), for introducing this important
environmental measure.
Mr. PORTMAN. Mr. Speaker, reclaiming my time, I want to thank the
chairman for that explanation of the changes in the bill, and tell him
that I very much appreciate his willingness to work closely with us
over the past several months in putting this product together. It was
his willingness to take this bill to his committee and expedite it that
enabled us to be here today on the floor to pass what is truly historic
legislation.
As the gentleman from New York (Mr. Gilman) said, we passed this bill
on March 19 by a strong vote of 356 to 61. Since then, as the gentleman
from New York (Mr. Gilman) has said, we worked closely with the Senate
on a day-to-day basis. They made what I think were very good and
technical and clarifying changes, as the gentleman from New York (Mr.
Gilman) has just explained, and actually improves the legislation and
makes it a better bill.
I want to thank Senator Lugar, who took the lead in the Senate, and
also Senator Brownback, who improved the bill, and Senators Biden,
Chafee, and
[[Page H5510]]
Leahy for their hard work on this legislation.
The bill links two very important facts of life. One is that tropical
forests are disappearing at a very rapid rate. He mentioned the state
of Pennsylvania. An area larger than the State of Ohio is being
destroyed every year in terms of our tropical forests worldwide.
This has an impact on us, directly on our environment, our air
quality, but also with regard to medicinal benefits and so on, as the
gentleman from New York (Mr. Gilman) said. That is one fact of life.
The second is that these tropical forests happen to be located in
countries that have tremendous debts to the United States. Therefore,
we have an opportunity here, and this bill does in 3 years what is
cost-free to the taxpayers, which is debt buybacks authorized by this
bill.
Building on President Bush's Enterprise for the Americas initiative,
it also permits us as a Congress to be able to do what are called debt-
for-nature swaps; in other words, the so-called swapping their debt for
their ability to preserve tropical forests in their countries.
Next is to allow third parties to come in and purchase debt, which
will save tropical forests worldwide. It is a very commonsense free
market approach to one of our most pressing environmental problems
globally. I want to again thank the chairman for taking the lead on
this.
{time} 1200
I also want to thank two other Members who could not be here with us
right now. One is the gentleman from Indiana (Mr. Hamilton) on the
other side of the aisle, and the other is the gentleman from Ohio (Mr.
Kasich) who took the lead as being original cosponsors of this
legislation and pushing it through the process. There are many other
people to thank: the Nature Conservancy, Conservation International,
World Wildlife Fund and other outside groups, my chief of staff, John
Bridgeland.
This is a great example of how working together we can truly address
pressing problems, in this case a pressing environmental problem. I
look forward to working with the gentleman from New York (Mr. Gilman)
and others to ensure this bill is funded this year. Again, we have
expedited it so that that is possible, also that it be implemented in a
manner that truly protects these invaluable resources round the globe.
Mr. Speaker, continuing my reservation of objection, I yield to the
gentleman from New York (Mr. Gilman).
Mr. GILMAN. Mr. Speaker, again, I want to thank the gentleman from
Ohio (Mr. Portman) for his leadership on a very important environmental
measure that our side of the aisle fully supports.
Mr. HAMILTON. Mr. Speaker, I rise in support of this bill.
The Tropical Forest Conservation Act of 1998, has two important
objectives:
First, it seeks to preserve tropical forests by establishing a
framework that brings together environmental resources and expertise in
the U.S. with non-governmental and environmental organizations in the
beneficiary country.
Second, the bill seeks to address the issue of debt reduction. Most
tropical forests are located in countries saddled with massive debt.
Some of these debts are owed to the U.S. This bill enables a
participating country to reduce the debt it owes to the U.S. by
restructuring its loans or by participating in debt buy-backs or debt-
swaps.
Third, this bill focuses on the establishment, restoration,
protection, and management of tropical forests to ensure a well-planned
and well-managed program. It also ensures accountability and results by
establishing strict oversight controls.
This bill was passed by the House on March 19, 1998 by a bipartisan
vote of 356-61. The Senate passed this bill unanimously yesterday with
several positive amendments. The Senate: (1) deleted the requirement
that a country have a minimum level of environmental policies and
practices in place to qualify under the program. The purpose of this
bill is to encourage such activities and policies; (2) made clear that
funds under the program may only be used to conserve and protect
tropical forests; (3) deleted two purposes for these programs, the
mitigation of greenhouse gases and support for local cultures from
eligible activities under the bill. These were viewed as unnecessary;
(4) deleted a requirement for 634A notification before funds are
obligated for debt reduction. It is understood that the Administration
will voluntarily provide such notice; and (5) added forestry
organizations in the beneficiary countries to membership in the
administering body and board and makes them eligible to receive grants.
This is a good bill. I urge my colleagues to join me in passing this
bill.
Mr. BEREUTER. Mr. Speaker, this Member rises in the strong support of
H.R. 2870, the Tropical Forest Protection Act and congratulates the
distinguished gentleman from Ohio [Mr. Robb Portman] for introducing
this important legislation. The world's tropical forests, which are
biodiverse, economically crucial, and ecologically irreplaceable, are
now rapidly disappearing. Many of these forests are located within
developing nations that are heavily dependent upon foreign aid and
burdened by extensive external debt. H.R. 2870 enacts measures to
protect these fragile and complex ecosystems from further exploitation
by providing a unique solution to two pressing global problems--third
world debt and deforestation.
Mr. Speaker, twelve years ago this Member offered one of the first
``Debt-for-Nature'' swaps as an amendment to the International
Financial Institutions Act. This earlier legislation called on the
World Bank to initiate discussions to ``facilitate debt-for-development
swaps for human welfare and environmental conservation.''
Also, this Member strongly supported the 1990 legislative initiative
known as ``Enterprise for the Americas'' (EAI) introduced by President
George Bush which provided debt relief for the countries of Latin
America in return for investments by these nations in environmental
protection. This initiative remains in effect today, serving as an
engine of growth to the Latin American economy and establishing as its
legacy some of the largest tropical forest parks in the world
throughout the region.
H.R. 2870 is a creative variation on the EAI theme. Several
constituents from this Member's home state of Nebraska have expressed
their support for this legislation. One letter in particular detailed a
family's involvement in making a record of the plants and herbs found
in tropical forests in an on-going effort to identify new medicines.
This legislation will preserve and protect rain forests in order that
these efforts can continue, benefiting mankind by identifying new cures
to diseases.
Mr. Speaker, this Member is particularly pleased that Bangladesh is
eligible for debt relief under the provisions of H.R. 2870. Bangladesh
is a country the size of the state of Wisconsin with a population
estimated at 125 million. Due to the pressure put on this small
nation's land resources, there is now a serious deforestation problem
in Bangladesh. Bangladesh's topography makes it prone to natural
disasters, especially floods, which were particularly severe in 1988
when two-thirds of Bangladesh's sixty-four districts experienced
extensive flood damage.
Bangladesh, one of the world's poorest nations, is also struggling
with overwhelming PL-480 debt. At the beginning of this
year, Bangladesh's PL-480 debt amounted to $501.7 million. This debt,
accumulated over more than a decade, now requires substantial payments
which Bangladesh, one of the world's poorest nations, can ill afford.
My colleagues may recall that an oversight prevented this matter from
being addressed in 1993 when debt forgiveness legislation was approved
for many other significant debtor countries. Any financial assistance
given to Bangladesh is negated by the payments it is now required to
make on its PL-480 debt, rather than being directed towards worthwhile
projects designed to stabilize population growth, establish health
programs, and build democracy.
To be eligible for debt reduction under H.R. 2870, a country must
contain an appropriate tropical forest and meet specific economic and
political criteria. At the March 10, 1998, markup of this legislation
by the Committee on International Relations, the Administration
testified that Bangladesh did indeed possess the requisite tropical
forests of regional importance.
The region in Bangladesh known as Chittagong and the Chittagong Hill
Tracts contain much of Bangladesh's tropical rain forests. Over the
years, however, this area has suffered greatly from the effects of
consistent soil erosion and deforestation due to Bangladesh's ever-
expanding human population as well as the effects of natural disasters.
It remains, however, the home of biodiversity as well as a variety of
wild animals, to include the world-famous and endangered Royal Bengal
Tiger.
The political eligibility criteria in H.R. 2870 require the debtor
country to have a democratically-elected government which is not
pursuing egregious policies in the area of human rights, narcotics, or
terrorism. The State Department has confirmed that Bangladesh meets
this political criteria.
The economic eligibility criteria requires the debtor country to have
in place or be making progress toward an IMF arrangement, World Bank
structural or sectoral adjustment loans if
[[Page H5511]]
necessary; to have put in place major investment reforms; and, if
appropriate, to have agreed with its commercial bank lenders on a
satisfactory lending program.
It is this Member's understanding that the IMF is negotiating a
potential staff-monitored program with Bangladesh. In addition, as
evidence of major investment reforms, Bangladesh has concluded a
bilateral investment treaty with the United States.
On a preliminary basis, the Department of the Treasury has determined
that if Bangladesh concludes its negotiations on an IMF staff-monitored
program, it should meet with economic eligibility requirements for debt
reduction under this legislation.
Based on the above, this Member concludes that Bangladesh does indeed
meet all three provisions of this legislation. Debt buybacks such as
are envisioned in this legislation would permit Bangladesh address its
lingering debt problem, while preserving its threatened tropical
forests.
In conclusion, Mr. Speaker, this Member would again like to thank the
distinguished gentleman from Ohio [Mr. Portman] for introducing this
important piece of legislation. This Member would also commend the
efforts of the Chairman of the Committee on International Relations,
the distinguished gentleman from New York [Mr. Gilman] for the
leadership he had demonstrated over the years on environmental matters.
General Leave
Mr. GILMAN. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days within which to revise and extend their remarks
on the matter being considered.
The SPEAKER pro tempore (Mr. Ewing). Is there objection to the
request of the gentleman from New York?
There was no objection.
Mr. PORTMAN. Mr. Speaker, I withdraw my reservation of objection.
The SPEAKER pro tempore. Is there objection to the initial request of
the gentleman from New York?
There was no objection.
A motion to reconsider was laid on the table.
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