[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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