[Congressional Record Volume 149, Number 168 (Wednesday, November 19, 2003)]
[House]
[Pages H11553-H11557]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OVERSEAS PRIVATE INVESTMENT CORPORATION AMENDMENTS ACT OF 2003
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 1824) to amend the Foreign Assistance Act of 1961 to
reauthorize the Overseas Private Investment Corporation, and for other
purposes.
The Clerk read as follows:
S. 1824
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Overseas Private Investment
Corporation Amendments Act of 2003''.
SEC. 2. ISSUING AUTHORITY.
Section 235(a)(2) of the Foreign Assistance Act of 1961 (22
U.S.C. 2195(a)(2)) is amended by striking ``November 1,
2000'' and inserting ``2007''.
SEC. 3. TECHNICAL CORRECTIONS.
(a) Administrative Costs.--Section 235(a)(1)(B) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(1)(B)) is
amended by striking ``subsidy cost'' and inserting ``subsidy
and administrative costs''.
(b) Noncredit Account Revolving Fund.--Section 235(c) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2195(c)) is
amended--
(1) in the first sentence--
(A) by striking ``an insurance and guaranty fund, which
shall have separate accounts to be known as the Insurance
Reserve and the Guaranty Reserve, which reserves'' and
inserting ``a noncredit account revolving fund, which''; and
(B) by striking ``such reserves have'' and inserting ``of
the fund has'';
(2) by striking the third sentence; and
(3) in the last sentence, by striking ``reserves'' and
inserting ``fund''.
(c) Payments To Discharge Liabilities.--Section 235(d) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2195(d)) is
amended--
(1) in the first sentence, by striking ``Insurance Reserve,
as long as such reserve'' and inserting ``noncredit account
revolving fund, as long as such fund''; and
(2) in the second sentence, by striking ``or under similar
predecessor guaranty authority'' and all that follows through
``subsection (f) of this section'' and inserting ``or 234(c)
shall be paid in accordance with the Federal Credit Reform
Act of 1990''.
(d) Authorization of Appropriations.--Section 235(f) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2195(f)) is
amended--
(1) in the first sentence, by striking ``insurance and
guaranty fund'' and inserting ``noncredit account revolving
fund''; and
(2) by striking ``Insurance Reserve'' each place it appears
and inserting ``noncredit account revolving fund''.
(e) Board of Directors.--Section 233(b) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2193(b)) is amended in the
second paragraph--
(1) by striking ``officials'' and inserting ``principal
officers'';
(2) by inserting ``whose duties relate to the programs of
the Corporation'' after ``Government of the United States'';
and
(3) by striking ``an official'' and inserting ``one such
officer''.
SEC. 4. INVESTMENT INSURANCE.
(a) Expropriation or Confiscation.--Section 234(a)(1)(B) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2194(a)(1)(B))
is amended by inserting ``or any political subdivision
thereof'' after ``government''.
(b) Definition of Expropriation.--Section 238(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2198(b)) is amended
by inserting ``,
[[Page H11554]]
a political subdivision of a foreign government, or a
corporation owned or controlled by a foreign government,''
after ``government''.
SEC. 5. LOCAL CURRENCY GUARANTY.
(a) Local Currency Guaranty.--Section 234 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2194) is amended by adding
at the end the following:
``(h) Local Currency Guaranties for Eligible Investors.--To
issue to--
``(1) eligible investors, or
``(2) local financial institutions, guaranties, denominated
in currencies other than United States dollars, of loans and
other investments made to projects sponsored by or
significantly involving eligible investors, assuring against
loss due to such risks and upon such terms and conditions as
the Corporation may determine, for projects that the
Corporation determines to have significant developmental
effects or as the Corporation determines to be necessary or
appropriate to carry out the purposes of this title.''.
(b) Definition of Local Financial Institution.--Section 238
of the Foreign Assistance Act of 1961 (22 U.S.C. 2198) is
amended--
(1) in subsection (d), by striking ``and'' after the
semicolon;
(2) in subsection (f), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(g) the term `local financial institution'--
``(1) means any bank or financial institution that is
organized under the laws of any country or area in which the
Corporation operates; but
``(2) does not include a branch, however organized, of a
bank or other financial institution that is organized under
the laws of a country in which the Corporation does not
operate.''.
SEC. 6. OUTREACH TO MINORITY- AND WOMEN-OWNED BUSINESSES.
(a) In General.--Section 240 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2200) is amended--
(1) in the first sentence, by striking ``The Corporation''
and inserting:
``(a) In General.--The Corporation''; and
(2) by adding at the end the following:
``(b) Outreach to Minority-Owned and Women-Owned
Businesses.--The Corporation shall collect data on the
involvement of minority- and women-owned businesses in
projects supported by the Corporation, including--
``(1) the amount of insurance and financing provided by the
Corporation to such businesses in connection with projects
supported by the Corporation; and
``(2) to the extent such information is available, the
involvement of such businesses in procurement activities
conducted or supported by the Corporation.
The Corporation shall include, in its annual report submitted
to the Congress under section 240A, the aggregate data
collected under this paragraph, in such form as to quantify
the effectiveness of the Corporation's outreach activities to
minority- and women-owned businesses.''.
The SPEAKER pro tempore (Mr. Shimkus). Pursuant to the rule, the
gentleman from Nebraska (Mr. Bereuter) and the gentleman from
California (Mr. Lantos) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
General Leave
Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I urge my colleagues to pass the bill before us this
afternoon, S. 1824, the Overseas Private Investment Corporation
Amendments Act of 2003. This bipartisan measure, which passed the
Senate on November 14 by unanimous consent, would extend the authority
to the Overseas Private Investment Corporation through September 30,
2007.
This action is necessary in light of the fact that the authority for
this important agency originally terminated on September 30 of this
year and that its continuation on an emergency basis expires at the end
of this week. This Member, therefore, asks his colleagues to pass this
bill so it can be sent to the President and signed into law without
delay. Its provisions are identical to those contained in H.R. 3145
which was approved by voice vote by the Committee on International
Relations on September 25.
The OPIC Amendments Act of 2003 makes technical and conforming
changes to OPIC's statutes, allows the corporation to offer its
investment insurance in several key markets, including acts of an
entity owned or controlled by a foreign government, permits the
corporation to provide a guarantee of local currency loans made by a
locally-established bank in countries without an established banking
presence, and directs the corporation to collect data on the
involvement of minority- and women-owned businesses in all of its
projects.
This key development agency has compiled an impressive track record
since its inception in 1971, supporting U.S. investors in overseas
markets in order to help our exporters. At the same time, it has
created more than 250,000 jobs in the U.S. and led to $64 billion in
U.S. exports. It operates on a self-sustaining basis, returning
approximately $200 million each year to the U.S. Treasury, and helps to
support other key U.S. development programs.
Members' support of this measure will ensure that OPIC continues to
play a developmental role in frontline states such as Pakistan and
Afghanistan and will permit it to implement investment and financing
programs in Iraq at minimal cost to the American taxpayer. Therefore,
this Member urges support of this measure.
Mr. Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. Without objection, the gentlewoman from
Nevada (Ms. Berkley) will assume control of the time for the minority.
There was no objection.
Ms. BERKLEY. Mr. Speaker, I yield myself such time as I may consume,
and I rise in strong support of S. 1824.
Mr. Speaker, I reserve the balance of my time.
Mr. BEREUTER. Mr. Speaker, it is my pleasure to yield such time as he
may consume to the distinguished gentleman from California (Mr.
Rohrabacher), a member of the committee.
Mr. ROHRABACHER. Mr. Speaker, I rise in support of S. 1824, a bill to
reauthorize funding for the Overseas Private Investment Corporation. I
never supported OPIC in the past because, until recently, what OPIC
basically did was provide insurance for Fortune 500 corporations to
invest overseas, and when those investments went belly up, the American
taxpayer picked up the bill. OPIC was basically an ATM machine for the
Fortune 500.
Well, things are different now. Things are changing at OPIC for the
better.
A new president, Dr. Peter Watson, is in charge of OPIC, and OPIC
funds are now being channeled to business initiatives that promote
democracy and justice and are in the interests of the American people.
One case of particular interest is that of Ethiopia.
{time} 1415
Ethiopia is a case of particular interest. Ethiopia is run today by
leaders who are inclined towards war and who frequently violate the
rights of honest people whose property has been confiscated by their
government. Some of these victims are U.S. citizens. One of the victims
is Mr. Berhane, my constituent, and now a U.S. citizen. The Berhane
family is a very well-respected family in Orange County. We all know
them and respect them as honest, hard-working people.
Mr. Berhane owned a successful enterprise in Ethiopia that was
stolen, confiscated by Ethiopia's former Marxist dictatorship. Although
the current regime in Ethiopia claims that such stolen property will be
returned, they refuse to give the Berhane family back their business or
offer just compensation.
Members of Congress and officials from the executive branch have
warned the government of Ethiopia that this issue is taken seriously;
and it will, therefore, have damaging repercussions if this injustice
to the Berhane family continues.
Underscoring this new commitment at OPIC, I have been informed that
OPIC will no longer consider any project for Ethiopia until this
American family is properly compensated for their property, for their
confiscated property. Let the government of Ethiopia be forewarned,
this issue will not stop here. We applaud OPIC today. Funding for
Ethiopia by multilateral development banks and the United States Agency
for International Development is in jeopardy. It will be called into
question until Americans are treated fairly in Ethiopia and their just
claims dealt with honestly.
I applaud OPIC and call on those who run Ethiopia not to hurt their
own people for selfish reasons and to give the
[[Page H11555]]
Berhane family back its property. I call on my colleagues to support
this reauthorization of OPIC which is now reconforming itself to those
noble principles which justified the creation of OPIC in the beginning,
and it is doing so demonstrably in my district by standing up for this
American family. So I am very proud to stand for the reauthorization of
OPIC today.
The SPEAKER pro tempore (Mr. Shimkus). Without objection, the
remainder of the time will be controlled by the gentleman from
California (Mr. Lantos) for the minority.
There was no objection.
Mr. LANTOS. Mr. Speaker, I yield myself such time as I might consume.
(Mr. LANTOS asked and was given permission to revise and extend his
remarks, and include extraneous material.)
Mr. LANTOS. Mr. Speaker, I rise in strong support of S. 1824, the
Overseas Private Investment Corporation Amendments Act of 2003.
Mr. Speaker, I would first like to express my deep appreciation to
the gentleman from Illinois (Chairman Hyde), who once again
demonstrated outstanding leadership in managing this all-encompassing,
bipartisan committee review of OPIC's operations and management.
On November 4 of this year, the Committee on International Relations
reported H.R. 3145, the identical companion bill to the legislation we
are considering today. All of the language in the committee's report
should be considered directly applicable to the reauthorization we are
voting on today.
Mr. Speaker, OPIC has faced its share of controversy over many years.
In particular, OPIC's mission to support private investment in
developing countries has sometimes seemed to be in conflict with its
own statutory responsibilities regarding loss of U.S. jobs and the
protection of the environment.
OPIC's leadership recently has made significant efforts to address
these issues. I want to commend Dr. Peter Watson, the president and CEO
of the Overseas Private Investment Corporation, for his commitment to
ensuring that OPIC complies with its statutory mandate on environment
and labor rights standards.
The reauthorization package we have before us is sound. Not only does
the bill reauthorize OPIC through September 30, 2007, but it reflects a
comprehensive, bipartisan compromise between the committee, OPIC, and
all of its stakeholders.
I am particularly pleased, Mr. Speaker, that our package will address
the concerns shared by many of my colleagues in recent years about the
effectiveness of OPIC's safeguards to ensure that its projects support
the interests of American workers, protect the global environment, and
support human rights.
I want to thank my distinguished colleague, the gentleman from
Illinois (Mr. Hyde), for his willingness to work with us to address
these concerns. The report language we have agreed upon directs OPIC to
establish a robust and independent accountability mechanism on these
matters, which I strongly believe will help guarantee broad
congressional support for this important institution.
Mr. Speaker, this legislation has strong bipartisan support, as well
as the support from environmental and labor groups. I urge all of my
colleagues to support OPIC's reauthorization by voting in favor of this
legislation.
Mr. Speaker, before I close, I include for the Record two letters
from OPIC President Watson to Chairman Hyde and me that were crucial to
our side's support for this legislation.
Overseas Private
Investment Corporation,
Washington, DC, October 30, 2003.
Hon. Henry Hyde,
Chairman, Committee on International Relations, House of
Representatives, Washington, DC.
Hon. Tom Lantos,
Ranking Member, Committee on International Relations, House
of Representatives, Washington, DC.
Dear Chairman Hyde and Congressman Lantos: As Congress
prepares to conclude action on legislation to reauthorize the
Overseas Private Investment Corporation (OPIC), I wanted to
affirm to you again my strong commitment to OPIC's statutory
mandates with regard to the environment.
During my confirmation hearing before the Senate Foreign
Relations Committee in May 2001, I said, ``I support OPIC's
rejection of applications for projects that pose major or
unreasonable hazards to the environment, health and safety.
OPEC should continue to support only environmentally
responsible development.'' I believe that my actions and
decisions over the past two years in promoting
environmentally sound development have given substance to
these words.
Over this time, I have had the opportunity to talk with
members of the International Relations Committee and
Congressional Committee staff concerning OPIC's environmental
stewardship, and to discuss ways to make our program more
accountable and transparent. My meetings with Representative
Earl Blumenauer have been particularly valuable in this
regard.
Based on these many discussions, I want to confirm to the
Committee my intent, in consultation with stakeholders, to
create an ``accountability mechanism'' at OPIC. Among other
functions, it is my intention that the mechanism will allow
for a robust, consistent and independent environmental
evaluation of OPIC projects, policies and practices, ensuring
that OPIC environmental program is the model for best
practices in other bilateral and multilateral institutions,
and that the agency continues to meet its developmental goals
in the most environmentally responsible manner. I look
forward to beginning this ambitious process in the coming
weeks.
I also want to confirm to the Committee my intent to
continue the dialogue with stakeholders on a ``transparency''
initiative. Among other functions, such an initiative is
intended to ensure that stakeholders can more clearly see how
OPIC is implementing its statutory mandates and policy
commitments concerning environmental stewardship. This
initiative would heighten transparency and information
disclosure concerning OPIC's projects and internal
mechanisms. I look forward to re-engaging in this dialogue in
the coming weeks and months.
Additionally, with a view toward fully supporting our
statutory mandates and enhancing the contribution provided to
the Corporation by the Board of Directors, I wanted to inform
the Committee that when a private sector Director term
expires, I am prepared to recommend to the Administration
that a future private sector Director have, as part of that
individual's professional qualifications, substantial
experience in advocating for or managing regulatory
compliance with environmental standards.
I deeply appreciate the bipartisan support OPIC has
received from the Committee over the past year, and look
forward to continuing to work with you and other members of
the Committee in the future.
Best regards,
Peter S. Watson,
President & CEO.
____
Overseas Private
Investment Corporation,
Washington, DC, October 30, 2003.
Hon. Henry J. Hyde,
Chairman, Committee on International Relations, House of
Representatives, Washington, DC.
Hon. Tom Lantos,
Ranking Member, Committee on International Relations, House
of Representatives, Washington, DC.
Dear Chairman Hyde and Congressman Lantos: Thank you for
your letter of October 29, 2003. Let me say that I am deeply
honored by your generous comments regarding OPIC's recent
progress toward fulfilling its developmental mission and
important foreign policy priorities. Cooperation with the
Committee has been essential to OPIC's successes to date, and
I look forward to continuing our close cooperation with the
Committee into the future.
Your letter also referenced OPIC's establishment of a
separate Office of Investment Policy and requested a summary
of the functions and policies of the new office in carrying
out OPIC's development mission, including worker rights. I am
pleased to provide the following to you in response.
Prior to 2001, OPIC statutory review for environmental,
worker rights, human rights and U.S. effects conditionalities
were performed in OPIC's Financial Management and Statutory
Review Department (FMSR). The Department fell under the
responsibility of the Vice President and Treasurer, which was
predominantly focused on the agency's budget and accounting
function.
As this office did not give the priority needed to enforce
its statutory responsibilities, I set out to correct the
situation by separating the budget and accounting functions
from the statutory review functions when I assumed my
responsibilities as President & CEO in 2001.
The result was a new Office of the Chief Financial Officer,
created to deal exclusively with budget and accounting
activities. Concurrently, I created the Office of Investment
Policy with the special responsibility for OPIC's
environmental, U.S. effects, human rights and worker rights
conditionalities, integrating all major statutory review
functions into one department.
Accordingly, in creating an office headed by a new Vice
President, consideration of statutory review functions was
for the first time elevated to the same level as OPIC's
product departments, Finance, Insurance and Investment Funds,
with full voting rights in OPIC internal deliberative
mechanisms. The result has been an overall elevation of and
improvement in OPIC's handling of its statutory
conditionalities. Allow
[[Page H11556]]
me now to make a brief description of the functions of the
office:
Environment
OPIC is required by statute to conduct an environmental
assessment of every project proposed for insurance or
financing and to decline support for investment projects
that, in OPIC's judgment, would have an unreasonable or major
adverse impact on the environment, or on the health or safety
in the host country. For most industrial sectors, OPIC
expects projects to meet the more stringent of World Bank or
host-country environmental, health and safety standards.
For projects in sectors designated as ``environmentally
sensitive'' a full Environmental Impact Assessment (EIA) must
be submitted for OPIC's review. As part of its review
process, OPIC lists every such project on OPIC's web site for
a 60-day public comment period.
U.S. effects
OPIC supports only those projects that are not likely to
harm the U.S. economy or have a negative effect on U.S.
employment. Additionally, OPIC will not support ``runaway
plants,'' which substitute existing U.S. facilities with
foreign plants to serve the same markets. By statute, and
consistent with overall U.S. government policy, OPIC does not
participate in projects subject to performance
requirements that would substantially reduce the potential
U.S. trade benefits of the investments.
Human rights
OPIC's statute directs the agency to take human rights into
account in the operation of its programs and to operate its
programs consistent with the provisions of Section 116 of the
Foreign Assistance Act. OPIC consults the State Department's
Bureau for Democracy, Human Rights and Labor Affairs, (DRL)
with respect to each and every project considered for OPIC
financing and insurance, as well as downstream transactions
undertaken by OPIC supported investment funds. No project
commitment is concluded by OPIC until DRL has provided OPIC
with its clearance on human rights.
Worker rights
OPIC has the strongest worker rights mandate of any
international financial institution, multilateral or
bilateral. OPIC is prohibited by statute from supporting
projects that contribute to violations of internationally
recognized worker rights. What is unique about OPIC's
statutory mandate is that it operates on both the country
eligibility and project levels.
OPIC promotes worker rights on the country level by
withholding eligibility for OPIC programs from countries that
are excluded from eligibility from the Generalized System of
Preferences (GSP) on worker rights grounds, as well as other
non-GSP countries that fail to take steps to adopt and
implement internationally recognized worker rights. On the
project level, the mandate is implemented through contractual
obligations between OPIC and the companies OPIC supports.
These obligations incorporate host country labor laws and
International Labor Organization (ILO) standards to ensure
that projects do not cause worker rights violations.
OPIC monitors worker rights in the field and requires
companies to promptly remediate worker rights violations or
face the default and other legal remedies available under
OPIC's authority. Looking to the future, OPIC hopes to work
with stakeholders to enhance compliance with internationally
recognized worker rights. We also hope that this process will
improve due diligence, reporting and monitoring procedures
providing detailed, accurate and timely information on worker
rights, and concurrently, that enforcement procedures are
comprehensive, effective and transparent. I wish to assure
the Committee of my strong personal interest and involvement
in this regard, and look forward to sharing the results of
our efforts with the Committee on a regular basis.
Future activities
I would also take this opportunity to confirm to the
Committee my intent, in consultation with stakeholders, to
create an accountability mechanism at OPIC. Among other
functions, it is my intention that the mechanism will allow
for a robust, consistent and independent evaluation of
social, labor, human rights and transparency standards of
OPIC projects, policies and practices.
I also want to confirm to the Committee my intent to
continue the dialogue with stakeholders on a ``transparency''
initiative. Among other functions, such an initiative is
intended to ensure that stakeholders can more clearly see how
OPIC is implementing its statutory mandates and policy
commitments concerning its stewardship of social, labor and
human rights issues. This initiative would heighten
transparency and information disclosure concerning OPIC's
projects and internal mechanisms. I look forward to re-
engaging in this dialogue in the coming weeks and months.
In closing, I would like to express my appreciation to the
Committee for its support, and I look forward to working with
you in the future.
Best regards,
Peter S. Watson,
President & CEO.
Mr. Speaker, I yield back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I thank the gentleman from California (Mr.
Lantos) for his statement and for the cooperation that he and other
Members on his side of the aisle and the staff of both sides of the
aisle have given us in the advancement of this legislation to
reauthorize OPIC.
Mr. Speaker, I urge all Members to support the reauthorization of
this very worthy, important agency.
Mr. MANZULLO. Mr. Speaker, I rise in support of the Overseas Private
Investment Corporation Amendments Act of 2003 (S. 1824), which will
reauthorize the vital programs of the Overseas Private Investment
Corporation (OPIC) for another four years. As the author of the
previous OPIC reauthorization bill in 1999 (P.L. 106-158), I am pleased
to strongly endorse S. 1824.
Since 1971, OPIC-supported projects have facilitated $145 billion
worth of investments in hundreds of projects that have helped
developing countries and emerging economies of the former East Bloc
improve their standard of living. In addition, OPIC-supported projects
have helped to create or sustain 254,000 American jobs and $65 billion
in exports; expanded economic development; encouraged political
stability; and promoted free market reforms around the world.
As an additional benefit, OPIC operates at no net cost to taxpayers
by charging fees for its services. It has earned a profit in each year
of operations--$175 million in 2002--and built its substantial reserves
to more than $4 billion. I wish every government agency operated like
OPIC by producing a profit for the taxpayer. All of OPIC's guaranty and
insurance obligations are backed by OPIC's own substantial reserves and
by the full faith and credit of the U.S. Government.
As chairman of the Small Business Committee, I am particularly
pleased that under the current leadership of OPIC President and CEO
Peter Watson, OPIC has launched two significant initiatives to
encourage greater use of OPIC's programs by small business exporters to
fulfill the mandate contained in P.L. 106-158 to expand OPIC's small
business efforts. First, in July 2003, OPIC announced the establishment
of a new department focusing on small and medium-size businesses. The
Small and Medium Enterprise Department will be responsible for OPIC's
Direct Loan program, which provides financing to U.S. businesses with
annual revenues under $250 million. The Small Business Center will also
be part of the new department. Small businesses looking to participate
in the global marketplace have unique requirements. Lack of resources
to pursue opportunities abroad, concern over political risks, or the
inability to find private sector support can prevent U.S. small
businesses from expanding overseas. The Small Business Center at OPIC
will help meet these needs by providing financing and political risk
insurance to small businesses with annual revenues of less than $35
million.
Second, OPIC and a small business lender. WorldBusiness Capital, Inc.
(WBC) of Hartford, Connecticut, in July 2003 entered into a historic
cooperative agreement that will expand support for U.S. small
businesses investing overseas and enhance the activities of OPIC's
Small Business Center. Under the agreement, OPIC will provide loan
guarantees for WBC projects pursuant to a risk-sharing arrangement. WBC
will make loans with its own funds, and will continue to monitor and
service each loan. WorldBusiness Capital, Inc. intends to make OPIC-
guaranteed loans of between $250,000 and $10 million to U.S. small
businesses expanding into overseas markets. Hopefully, this private-
public partnership will set an example for other banks to enter into
similar arrangements to publicize and maximize the leverage of OPIC's
programs to small business exporters. Delegated authority lenders and
preferred lenders are quite common programs at the Export-Import Bank
of the United States and the Small Business Administration. The same
should hold true for OPIC.
Mr. Speaker, it is a privilege and honor for me to support the
Overseas Private Investment Corporation Amendments Act of 2003. I
commend my good friends, Chairman Henry Hyde of Illinois and ranking
minority Member Tom Lantos of California of the House International
Relations Committee for working so hard on this bill and bringing it to
the floor in a timely manner. My only regret is that my duties on the
Small Business Committee prevented me from taking a more active role in
the OPIC reauthorization process this time around. I urge my colleagues
to support S. 1824.
Mr. THOMAS. Mr. Speaker, I submit two letters for the record with
respect to S. 1824, legislation to reauthorize the Overseas Private
Investment Corporation (OPIC). These letters are a letter that I wrote
to Dr. Peter S. Watson, President and CEO of OPIC, and the letter that
I received from Dr. Watson in response clarifying OPIC's statutory
obligations and existing practices with respect to issues regarding
worker rights.
[[Page H11557]]
House of Representatives,
Committee on Ways and Means,
Washington, DC, November 18, 2003.
Hon. Peter S. Watson,
President and Chief Executive Officer, Overseas Private
Investment Corporation, Washington, DC.
Dear Mr. Watson: The House of Representatives may soon
consider H.R. 3145, legislation to reauthorize the operations
of the Overseas Private Investment Corporation (OPIC) through
September 30, 2007. It is my understanding that nothing in
this reauthorization would alter in any way OPIC's statutory
obligations or existing practices with respect to issues
regarding worker rights. I request that you provide the
Committee, in writing, with confirmation of this
understanding and a complete summary of any and all of OPIC's
existing statutory obligations and practices with regards to
worker rights.
I look forward to hearing from you.
Best regards,
Bill Thomas,
Chairman.
____
Overseas Private
Investment Corporation,
Washington, DC, November 18, 2003.
Hon. William M. Thomas,
Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Chairman Thomas: Thank you for your letter of November
18, 2003. Your letter referenced H.R. 3145, legislation to
reauthorize the operations of ah Overseas Private Investment
Corporation (OPIC) through September 30, 2007, and it
requested both a confirmation that nothing in this
reauthorization would alter in any way OPIC's statutory
obligations or existing practices with respect to issues
regarding worker rights and a summary of such existing
statutory obligations and practices.
OPIC shares your understanding that H.R. 3145 would not
alter in any way OPIC's statutory obligations or existing
practices with respect to issues regarding worker rights. On
the country level, under current law and OPIC practice, OPIC
``may insure, reinsure guarantee, or finance a project only
if the country in which the project is to be undertaken is
taking steps to adopt and implement laws that extended
internationally recognized workers rights'' to workers in
that country, unless ``the President determines that such
activities by OPIC would be in the national economic
interests of the United States.'' (22 U.S.C. 2191a(a)).
In addition, OPIC is prohibited from providing ``assistance
for any program, project, or activity that contributes to the
violation of internationally recognized worker rights'' of
workers in the recipient country. (Sec. 533 of the
Consolidated Appropriations Resolution, 2003.) In this
context, ``internationally recognized worker rights'' means
``the right of association; the right to organize and bargain
collectively; [and] a prohibition on the use of any form of
forced or compulsory labor.'' Sec. 507(4) of the Trade Act of
1974 (19 U.S.C. 2467(4)). ``Internationally recognized worker
rights'' also includes ``a minimum age for the employment of
children, and a prohibition on the worst forms of child labor
. . .; and acceptable conditions of work with respect to
minimum wages, hours of work, and occupational safety and
health'' (Sec. 507(4) of the Trade Act of 1974) to the extent
``commensurate with the level of development of the recipient
country and sector,'' and in a manner that ``shall not
preclude assistance for the informal sector in such country,
micro and small-scale enterprise, and smallholder
agriculture.'' (See 533 of the Consolidated Appropriations
Resolution, 2003.
OPIC's statutory obligations and current practice also
require it to include language in its contracts requiring
eligible investors to observe the applicable laws of the
recipient country. In all contracts which OPIC enters into
with eligible investors, OPIC includes the following
language, ``The investor agrees not to take actions to
prevent employees of the foreign enterprise from lawfully
exercising their right of association and their right to
organize and bargain collectively. The investor further
agrees to observe applicable laws relating to a minimum age
for the employment of children, acceptable conditions of work
with respect to minimum wages, hours of work, and
occupational health and safety, and not to use forced labor.
The investor is not responsible under this paragraph for the
actions of a foreign government.'' (22 U.S.C. 2191a(a)(1)).
Best regards,
Peter S. Watson,
President & CEO.
Mr. BLUMENAUER. Mr. Speaker, I support the reauthorization of the
Overseas Private Investment Corporation (OPIC) and the important role
it plays in assisting emerging markets in developing countries and
promoting U.S. exports, which creates jobs here at home. OPIC's
operations and activities have supported over 250,000 U.S. jobs and
produced $64 billion of U.S. exports.
With this important role comes a responsibility to ensure that
projects promoted by OPIC uphold adequate environmental, labor, and
human rights standards, I am pleased that OPIC is taking steps to
ensure this responsibility is upheld. The Report accompanying this
legislation outlines the International Relations Committee's
expectation that OPIC continue its work towards implementing an
``accountability mechanism'' and ``transparency initiative.''
The accountability mechanism should be in the form of an independent
position within OPIC that evaluates and reports on environmental,
social, labor and human rights impacts. The transparency initiative
should make certain that interested stakeholders have appropriate
access to information concerning OPIC's projects. This level of
transparency will strengthen OPIC's programs and policies.
I expect this Congress and the International Relations Committee to
monitor OPIC's progress towards these initiatives through hearings and
reports. I look forward to continued dialogue with OPIC on these issues
to strengthen the link between economic development, and environmental
and social progress.
Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska (Mr. Bereuter) that the House suspend the rules
and pass the Senate bill, S. 1824.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the Senate bill was passed.
A motion to reconsider was laid on the table.
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