[Congressional Record Volume 163, Number 158 (Tuesday, October 3, 2017)]
[House]
[Pages H7700-H7704]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        NICARAGUAN INVESTMENT CONDITIONALITY ACT (NICA) OF 2017

  Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1918) to oppose loans at international financial 
institutions for the Government of Nicaragua unless the Government of 
Nicaragua is taking effective steps to hold free, fair, and transparent 
elections, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1918

       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 ``Nicaraguan Investment 
     Conditionality Act (NICA) of 2017''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The House Committee on Foreign Affairs convened a 
     congressional hearing on December 1, 2011, entitled 
     ``Democracy Held Hostage in Nicaragua: Part 1'' where former 
     United States Ambassador to Nicaragua Robert Callahan 
     testified, ``First, that Daniel Ortega's candidacy was 
     illegal, illegitimate, and unconstitutional; second, that the 
     period leading to the elections and the elections themselves 
     were marred by serious fraud; third, that Daniel Ortega and 
     his Sandinista party have systematically undermined the 
     country's fragile governmental institutions.''.
       (2) According to the Organization of American States (OAS) 
     report on the Nicaraguan

[[Page H7701]]

     2011 Presidential elections, the OAS recommended that the 
     Government of Nicaragua take a number of steps to improve its 
     electoral systems, including accrediting poll watchers to 
     ensure political parties and civil society are represented to 
     observe elections, and redesigning the structure of the 
     Nicaraguan electoral council to allow proper registration of 
     the electorate.
       (3) On January 25, 2012, a press statement from Secretary 
     of State Hillary Clinton said: ``As noted by international 
     observers and Nicaraguan civil society groups, Nicaragua's 
     recent elections were not conducted in a transparent and 
     impartial manner, and the entire electoral process was marred 
     by significant irregularities. The elections marked a setback 
     to democracy in Nicaragua and undermined the ability of 
     Nicaraguans to hold their government accountable.''.
       (4) According to the Department of State's 2015 Fiscal 
     Transparency Report: ``Nicaragua's fiscal transparency would 
     be improved by including all off-budget revenue and 
     expenditure in the budget, auditing state-owned enterprises, 
     and conducting a full audit of the government's annual 
     financial statements and making audit reports publicly 
     available within a reasonable period of time.''.
       (5) According to the Department of State's Country Reports 
     on Human Rights Practices for 2015: ``In 2011 the Supreme 
     Electoral Council (CSE) announced the re-election of 
     President Daniel Ortega Saavedra of the Sandinista National 
     Liberation Front (FSLN) in elections that international and 
     domestic observers characterized as seriously flawed. 
     International and domestic organizations raised concerns 
     regarding the constitutional legitimacy of Ortega's re-
     election. The 2011 elections also provided the ruling party 
     with a supermajority in the National Assembly, allowing for 
     changes in the constitution, including extending the reach of 
     executive branch power and the elimination of restrictions on 
     re-election for executive branch officials and mayors. 
     Observers noted serious flaws during the 2012 municipal 
     elections and March 2014 regional elections.''.
       (6) According to the Department of State's Country Reports 
     on Human Rights Practices for 2015 in Nicaragua: ``The 
     principal human rights abuses were restrictions on citizens' 
     right to vote; obstacles to freedom of speech and press, 
     including government intimidation and harassment of 
     journalists and independent media, as well as increased 
     restriction of access to public information, including 
     national statistics from public offices; and increased 
     government harassment and intimidation of nongovernmental 
     organizations (NGOs) and civil society organizations.''.
       (7) The same 2015 report stated: ``Additional significant 
     human rights abuses included considerably biased policies to 
     promote single-party dominance; arbitrary police arrest and 
     detention of suspects, including abuse during detention; 
     harsh and life-threatening prison conditions with arbitrary 
     and lengthy pretrial detention; discrimination against ethnic 
     minorities and indigenous persons and communities.''.
       (8) On June 7, 2016, the Department of State's Bureau of 
     Democracy, Human Rights and Labor posted on social media: 
     ``Disappointed government of Nicaragua said it will deny 
     electoral observers requested by Nicaraguan citizens, church, 
     and private sector . . . We continue to encourage the 
     government of Nicaragua to allow electoral observers as 
     requested by Nicaraguans.''.
       (9) On June 14, 2016, President Ortega expelled three 
     United States Government officials (two officials from U.S. 
     Customs and Border Protection and one professor from the 
     National Defense University) from Nicaragua.
       (10) On August 1, 2016, the Department of State issued a 
     press release to express grave concern over the Nicaraguan 
     government limiting democratic space leading up to the 
     elections in November and stated that ``[o]n June 8, the 
     Nicaraguan Supreme Court stripped the opposition Independent 
     Liberal Party (PLI) from its long recognized leader. The 
     Supreme Court took similar action on June 17 when it 
     invalidated the leadership of the Citizen Action Party, the 
     only remaining opposition party with the legal standing to 
     present a presidential candidate. Most recently, on July 29, 
     the Supreme Electoral Council removed 28 PLI national 
     assembly members (16 seated and 12 alternates) from their 
     popularly-elected positions.''.
       (11) On November 7, 2016, the Department of State issued a 
     press release stating: ``The United States is deeply 
     concerned by the flawed presidential and legislative 
     electoral process in Nicaragua, which precluded the 
     possibility of a free and fair election on November 6. In 
     advance of the elections, the Nicaraguan government sidelined 
     opposition candidates for president, limited domestic 
     observation at the polls and access to voting credentials, 
     and took other actions to deny democratic space in the 
     process. The decision by the Nicaraguan government not to 
     invite independent international electoral observers further 
     degraded the legitimacy of the election.''.
       (12) In November and December of 2016, the Board of 
     Executive Directors of the Inter-American Development Bank 
     postponed consideration of a policy based loan of $65 million 
     to the Government of Nicaragua due to the efforts of the 
     United States mission that expressed serious concerns of the 
     absence of transparency, systemic corruption, and the lack of 
     free and fair elections in Nicaragua.
       (13) According to the Department of State's Country Reports 
     on Human Rights Practices for 2016: ``[A]ctions by the ruling 
     Sandinista National Liberation Front (FSLN) party resulted in 
     de facto concentration of power in a single party, with an 
     authoritarian executive branch exercising significant control 
     over the legislative, judicial, and electoral functions.''.
       (14) According to the Department of State's Country Reports 
     on Human Rights Practices for 2016 in Nicaragua, ``The 
     November 6 elections for president, vice president, national 
     assembly members, and representatives for the Central 
     American parliament did not meet the conditions of being free 
     and fair . . . The November 6 presidential and legislative 
     elections were marred by allegations of institutional fraud 
     and the absence of independent opposition political parties. 
     National observers and opposition leaders claimed rates of 
     abstention from 60 to 70 percent.''.
       (15) According to the Department of State's Country Reports 
     on Human Rights Practices for 2016: ``Companies reported that 
     bribery of public officials, unlawful seizures, and arbitrary 
     assessments by customs and tax authorities were common . . . 
     The courts remained particularly susceptible to bribes, 
     manipulation, and other forms of corruption, especially by 
     the FSLN, giving the sense that the FSLN heavily influenced 
     CSJ and lower-level court actions.''.

     SEC. 3. STATEMENT OF POLICY.

       It is the policy of the United States to support--
       (1) the rule of law and an independent judiciary and 
     electoral council in Nicaragua;
       (2) independent pro-democracy organizations in Nicaragua;
       (3) free, fair, and transparent elections under 
     international and domestic observers in Nicaragua; and
       (4) anti-corruption and transparency efforts in Nicaragua.

     SEC. 4. INTERNATIONAL FINANCIAL INSTITUTIONS.

       (a) In General.--The President shall instruct the United 
     States Executive Director at each international financial 
     institution to use the voice, vote, and influence of the 
     United States to oppose any loan for the benefit of the 
     Government of Nicaragua, other than to address basic human 
     needs or promote democracy, unless the Secretary of State 
     certifies and reports to the appropriate congressional 
     committees that the Government of Nicaragua is taking 
     effective steps to--
       (1) hold free, fair, and transparent elections overseen by 
     credible domestic and international electoral observers;
       (2) promote democracy, as well as an independent judicial 
     system and electoral council;
       (3) strengthen the rule of law;
       (4) respect the right to freedom of association and 
     expression;
       (5) combat corruption, including investigating and 
     prosecuting government officials that are credibly alleged to 
     be corrupt; and
       (6) protect the right of political opposition parties, 
     journalists, trade unionists, human rights defenders, and 
     other civil society activists to operate without 
     interference.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     submit to the appropriate congressional committees a written 
     report assessing--
       (1) the effectiveness of the international financial 
     institutions in enforcing applicable program safeguards in 
     Nicaragua; and
       (2) the effects of the matters described in section 2 on 
     long-term prospects for positive development outcomes in 
     Nicaragua.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Affairs, the Committee on 
     Appropriations, and the Committee on Financial Services of 
     the House of Representatives; and
       (B) the Committee on Foreign Relations, the Committee on 
     Appropriations, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate.
       (2) International financial institution.--The term 
     ``international financial institution'' means the 
     International Monetary Fund, International Bank for 
     Reconstruction and Development, European Bank for 
     Reconstruction and Development, International Development 
     Association, International Finance Corporation, Multilateral 
     Investment Guarantee Agency, African Development Bank, 
     African Development Fund, Asian Development Bank, Inter-
     American Development Bank, Bank for Economic Cooperation and 
     Development in the Middle East and North Africa, and Inter-
     American Investment Corporation.
       (d) Termination.--This section shall terminate on the day 
     after the earlier of--
       (1) the date on which the Secretary of State certifies and 
     reports to the appropriate congressional committees that the 
     requirements of subsection (a) are met; or
       (2) 5 years after the date of the enactment of this Act.
       (e) Waiver.--The President may waive this section if the 
     President determines that such a waiver is in the national 
     interest of the United States.

     SEC. 5. ORGANIZATION OF AMERICAN STATES.

       The President shall direct the United States Permanent 
     Representative to the OAS to use the voice, vote, and 
     influence of

[[Page H7702]]

     the United States at the OAS to strongly advocate for an 
     Electoral Observation Mission to be sent to Nicaragua in 2017 
     to observe the possibility of credible elections.

     SEC. 6. SENSE OF CONGRESS.

       The Department of State and the United States Agency for 
     International Development should prioritize foreign 
     assistance to the people of Nicaragua to assist civil society 
     in democracy and governance programs, including human rights 
     documentation.

     SEC. 7. REPORT ON CORRUPTION IN NICARAGUA.

       (a) Report Requirement.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary of State, in 
     consultation with the intelligence community (as defined in 
     section 3(4) of the National Security Act of 1947 (50 U.S.C. 
     3003(4)), shall submit to Congress a report on the 
     involvement of senior Nicaraguan government officials, 
     including members of the Supreme Electoral Council, the 
     National Assembly, and the judicial system, in acts of public 
     corruption or human rights violations in Nicaragua.
       (b) Form.--The report required in subsection (a) shall be 
     submitted in unclassified form, but may contain a classified 
     annex. The unclassified portion of the report shall be made 
     available to the public.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Royce) and the gentleman from New Jersey (Mr. Sires) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California.
  General Leave
  Mr. ROYCE of California. 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 this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, the world has watched with great concern, with mounting 
horror, actually, as Venezuela suffers economic ruin amid a potential 
crisis that has eroded democracy, and that threatens to destabilize the 
region. Meanwhile, less noticed, Nicaragua continues to violate the 
region's democratic values by failing to conduct fair and transparent 
elections and by denying Nicaraguans freedom of expression and freedom 
of association.
  Mr. Speaker, I am grateful for the leadership of chairman emeritus of 
the Foreign Affairs Committee, Ms. Ros-Lehtinen; and the chairman and 
ranking member of the Western Hemisphere Subcommittee, Mr. Duncan; and 
the ranking member, Mr. Sires, in bringing this measure to the floor.

                              {time}  1445

  This legislation will require U.S. representatives at international 
financial institutions to use the vote and influence of the United 
States to oppose any loans to Nicaragua unless the country has shown a 
willingness to respect the human and democratic rights of its citizens.
  Nicaragua's authoritarian President Daniel Ortega, and that's the 
same Daniel Ortega who lost the Presidency in 1990, has tightened his 
grip on power by weakening government institutions and the opposition 
and ensuring power for himself and his family by excluding 
international election observers.
  By requiring that the Secretary of State certify that Nicaragua has 
taken steps to provide election transparency and combat corruption 
before the United States votes to provide the Government of Nicaragua 
with loans, we help ensure that taxpayer money is not used to line the 
pockets of corrupt authoritarians, or to derail the legitimate 
democratic rights of the Nicaraguan citizens.
  We need only to look to Venezuela to see that the consolidation of 
state power and organized crime and corruption actually go hand in 
hand. As a region, we must stand in strong opposition to 
authoritarianism and corruption in Nicaragua, while not punishing the 
people of Nicaragua. And it is this point of not punishing the people 
of Nicaragua that also we have to include in this measure; and for that 
reason, and because of this, the authors of the bill have insured a 
carve-out, and that carve-out exempts all loans that are for 
humanitarian purposes.
  So this bill stands squarely with the people of Nicaragua and their 
hopes for freedom and democracy and the rule of law. Its passage is 
just one way that we can demonstrate this support. I urge my colleagues 
to join me in supporting the measure.
  Mr. Speaker, I reserve the balance of my time.
                                         House of Representatives,


                              Committee on Financial Services,

                                  Washington, DC, October 3, 2017.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs,
     Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 1918, the 
     Nicaraguan Investment Conditionality Act (NICA) of 2017, as 
     amended.
       As a result of your having consulted with the Committee on 
     Financial Services concerning provisions in the bill that 
     fall within our Rule X jurisdiction, I agree to forgo action 
     on the bill so that it may proceed expeditiously to the House 
     Floor. The Committee on Financial Services takes this action 
     with our mutual understanding that, by foregoing 
     consideration of H.R. 1918, as amended, at this time, we do 
     not waive any jurisdiction over the subject matter contained 
     in this or similar legislation, and that our Committee will 
     be appropriately consulted and involved as this or similar 
     legislation moves forward so that we may address any 
     remaining issues that fall within our Rule X jurisdiction. 
     Our Committee also reserves the right to seek appointment of 
     an appropriate number of conferees to any House-Senate 
     conference involving this or similar legislation, and 
     requests your support for any such request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding with respect to H.R. 1918, as 
     amended, and would ask that a copy of our exchange of letters 
     on this matter be included in the Congressional Record during 
     floor consideration thereof.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman, Committee on Financial Services.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                  Washington, DC, October 3, 2017.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services,
     Washington, DC.
       Dear Chairman Hensarling: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1918, the Nicaragua Investment 
     Conditionality Act, so that the bill may proceed 
     expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, or prejudice its jurisdictional prerogatives 
     on this resolution or similar legislation in the future. I 
     would support your effort to seek appointment of an 
     appropriate number of conferees from your committee to any 
     House-Senate conference on this legislation.
       I will seek to place our letters on H.R. 1918 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work together as this measure 
     moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
                                                         Chairman.

  Mr. SIRES. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise to speak in support of H.R. 1918, the Nicaraguan 
Investment Conditionality Act, also known as the NICA Act.
  I want to start by thanking Chairman Royce, Ranking Member Engel, and 
my chairman on the Western Hemisphere Subcommittee, Jeff Duncan, for 
their efforts to bring this bill to the floor.
  I also would like to thank my good friend from Florida, Ileana Ros-
Lehtinen, who has worked tirelessly for decades and never backs down 
when it comes to standing up against authoritarian regimes and human 
rights violators.
  We are here today to stand up against Daniel Ortega and his constant 
pursuit of gaining absolute political control over the Nicaraguan 
people. Daniel Ortega and his family continue to amass wealth while the 
Nicaraguans remain the second poorest country in the Western 
Hemisphere.
  Ortega has spent years winning sham elections, eliminating political 
opposition, and now has his wife take the role of Vice President. If 
you need any more convincing of his intentions, Ortega continues to 
strongly defend Nicolas Maduro, the Venezuelan dictator whose regime 
shoots unarmed protestors in the streets, jails the opposition, 
dissolved Congress, and has brought what should be one of the richest 
countries in Latin America to the brink of collapse.
  Being a corrupt democracy in name only cannot go without 
consequences. This bipartisan legislation makes it clear that the U.S. 
will not stand by and watch Ortega trample the people's human rights 
defenders and stomp all over democracy, while getting rich at the 
expense of the Nicaraguan people.

[[Page H7703]]

  H.R. 1918 calls on the U.S. Government to oppose loans at 
international financial institutions for Nicaragua unless the 
Nicaraguan Government takes some effective steps to hold free, fair, 
and transparent elections and commits to upholding democratic 
principles.
  Congress and the administration need to work together and find ways 
to empower the Nicaraguan people and defend against Ortega's hostile 
behavior towards innocent civilians. It is my hope that this bipartisan 
legislation will pass the Senate and quickly be signed into law.
  I thank the chairman and ranking member once again and their staff 
for all their help in bringing the NICA Act to the floor. I urge my 
colleagues to vote in support of this bill to hold the Ortega regime 
accountable for its actions.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I yield 6 minutes to the 
gentlewoman from Florida (Ms. Ros-Lehtinen) who chairs the Foreign 
Affairs Subcommittee on the Middle East and North Africa, and is the 
author of this legislation.
  Ms. ROS-LEHTINEN. Mr. Speaker, I rise in strong support of this bill, 
H.R. 1918, the Nicaraguan Investment Conditionality Act, also known as 
the NICA Act, and I want to thank Chairman Royce and Ranking Member 
Engel for working with my office to bring this important measure to the 
floor today.
  I also want to thank my legislative ``brother,'' ``mi hermano,'' the 
gentleman from New Jersey (Mr. Sires), who is the Democratic lead on 
this legislation, because his leadership on all things related to human 
rights is admirable, and his steadfast support for the people of 
Nicaragua has been unwavering.
  I also want to thank the Western Hemisphere Subcommittee Chairman 
Jeff Duncan. He has been helping us in leading the effort and bringing 
attention to the human rights abuses that are sadly occurring in 
Nicaragua.
  This legislation before us, Mr. Speaker, is straightforward, and it 
is simple. There have been a lot of exaggerations about what this bill 
does and what this bill doesn't do.
  Our bill is aimed at leveraging America's influence and conditioning 
our vote at any of the international financial institutions for 
Nicaragua until the leadership in that country takes significant steps 
to restore democratic order.
  I think that we would all agree, as Members of the United States 
Congress, that to have democracies in our region is beneficial; and to 
have strong governance and strong rule of law and a strong independent 
judiciary, these are all values that we share and that the people 
throughout the hemisphere would like to have that in their countries as 
well.
  So let's go over, just briefly, what are some of the conditions in 
this bill. And please, as I go through them, ask yourself: Is that a 
damaging condition, or is that something that would help the people? 
Not whether it helps the ruling class, the rich guys, the fat-cat 
bankers, not whether it helps the regime or the government in power, 
whether it helps the people of those countries.
  So let me go through the list, Mr. Speaker. This bill has as 
conditions:
  To promote democracy. Promoting democracy, promoting an independent 
judicial system. Those are wonderful values. Promoting an independent 
electoral council, so that the ruling party doesn't steal elections;
  Strengthen the rule of law so that you don't have corrupt judges 
deciding in favor of the rich guys and against the poor of the country;
  Fighting corruption, including investigating and prosecuting 
government officials who are credibly alleged to be corrupt, who go 
against the people of Nicaragua and further enrich those who wish to do 
damage to the country.
  What else does the bill do? Well, one of the conditions is that it 
protects the right of political opposition parties. Don't we want that, 
political opposition parties; journalists who are trying to get the 
truth to the Nicaraguan people just as they do here to the American 
people; trade unionists; human rights defenders and other civil rights 
advocates to operate without interference. Isn't that what we want for 
all countries to have?

  These conditions, Mr. Speaker, they are not unheard of; in fact, they 
are similar to what this country has already passed, what this Congress 
has already passed for the Northern Triangle countries of Honduras, of 
Guatemala, and of El Salvador. And now we want to do that for 
Nicaragua, so it is intended to help the people of Nicaragua.
  This bill has safeguards in place to ensure that humanitarian 
assistance continues to be provided to address basic human needs. 
Humanitarian assistance will continue.
  Some of those basic needs that we talked about, such as free and fair 
elections, they are not being met today due to the failed leadership in 
Nicaragua. And who does that help? Well, it helps the leaders, and it 
hurts the people when you don't have free and fair elections. We want 
to help the people of Nicaragua.
  Now, reports have surfaced that the Nicaraguan electoral council is 
giving away identity cards, so that minors, underage individuals can be 
allowed to vote. Nicaraguans who are not on the electoral rolls are 
also being allowed to vote.
  What does that mean, Mr. Speaker? It means that there will be no way 
to determine if the individual voted more than once, and that is 
exactly how the status quo wants it; the fat-cats, they like it so that 
they can stay there and they can manipulate the results of the 
elections.
  We are also seeing civil society leaders publicly expressing their 
concern regarding the deterioration of human rights in Nicaragua. As a 
result of speaking out against the government, they have been targeted 
for persecution. You speak out against the government, you are going to 
have some false charges thrown at you.
  And what about the indigenous communities? They have also expressed 
their concern regarding land grabs by the government. Violence is 
breaking out as the Nicaraguan military is being dispatched to squash 
the peaceful protests by these indigenous communities.
  So let us not forget, Mr. Speaker, just what kind of leadership 
structure we are dealing with in Nicaragua. The Russians have set up 
operations in Managua, they are proud of it, they put it in the front 
pages, and that poses a threat to U.S. national security interests.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. ROYCE of California. I yield the gentlewoman an additional 2 
minutes.
  Ms. ROS-LEHTINEN. Mr. Speaker, Nicaragua continues to offer its 
unconditional support to Nicolas Maduro and his dictatorial regime in 
Venezuela. And according to congressional testimony, Venezuela's 
entity, PDVSA, has also used its subsidiary in Nicaragua, which is 
called Albanisa--and I will give the exact letters of those names--to 
launder money.
  So, Mr. Speaker, if Venezuela's Maduro is using Nicaragua in order to 
evade U.S. sanctions, we need to take a closer look at these ties. We 
need to hold people accountable because all of that hurts the people of 
Venezuela and the people of Nicaragua. It helps the government, but it 
doesn't help the people.
  That is what this bill does. We want to hold the Nicaraguan 
Government accountable, just like we have done in other countries, as I 
said, in Central America. This is not something new, out of whole 
cloth, that we have invented. It has worked, and it has truly helped 
the people.
  Now, earlier this year, Mr. Sires and I, we traveled to Honduras, we 
traveled to Guatemala, and we saw firsthand how conditioning our 
support for these countries works and has been extremely effective.
  Has it hurt those countries? It has not. It has worked. It has 
strengthened their democracy. It has strengthened the rule of law, the 
independent judiciary.
  So placing conditions incentivizes countries to do the right thing, 
and it makes institutional reforms, as needed, to improve the 
livelihood of their citizens.
  So I know that the Nicaraguan Government does not like this bill, but 
I tell you, Mr. Speaker, the people of Nicaragua would like to know 
that the United States Congress stands with them as they call for 
reforms that promote democracy, that strengthen the

[[Page H7704]]

rule of law, that fight corruption, and that protect the rights of all 
political opposition parties, and that is exactly what this bill does.
  Mr. SIRES. Mr. Speaker, I yield 2 minutes to the gentleman from Texas 
(Mr. Gonzalez), a member of the Financial Services Committee.
  Mr. GONZALEZ of Texas. Mr. Speaker, I rise today to express my 
concern with H.R. 1918, the Nicaraguan Investment Conditionality Act of 
2017.
  Today, I stand with the people of Nicaragua and the people of south 
Texas. Nicaragua has been our partner to the south. They work with us 
to combat drug trafficking, limit irregular migration, and make our 
region and our world a safer place. Nicaragua today is the safest 
country in Central America.

                              {time}  1500

  I agree, we must be vigilant in monitoring Nicaragua's transition to 
democracy. However, we must recognize that enacting this bill could 
have serious consequences on the region.
  NICA could strain our alliance with Nicaragua, and it could lead to 
instability, irregular immigration to the United States, to my border 
district, and an increase in criminal activity. My district was ground 
zero for the last immigration surge, and I would like to prevent that 
from happening again.
  Nicaragua has its economic and political challenges, but it has taken 
steps to address poverty, climate change, and to grow its economy. How 
can we, in good conscience, support a measure that would punish the 
poorest country in Central America and the second poorest in the 
Western Hemisphere?
  Moreover, Nicaragua stands with America and our allies against the 
rogue nation of North Korea. We cannot compare Nicaragua to Venezuela.
  While we must hold countries accountable, we should bring them in 
rather than shut them out. We have the ability to guide these nations 
to embrace democracy and condemn bad actors.
  Lastly, I want to make clear that this is not an endorsement of the 
Sandinistas or any other regime. Today I speak for the less fortunate 
in Nicaragua who suffer the most from NICA.
  Mr. Speaker, I look forward to working with my colleagues to find a 
solution to this complex issue.
  Mr. ROYCE of California. Mr. Speaker, I yield myself 2 minutes.
  Mr. Speaker, I think it is important, when we consider the challenge 
that we have here, the Carter Center was involved in Nicaragua trying 
to oversee the election there. They came to the conclusion that the 
election was not transparent. The elections were not fair in Nicaragua.
  The European Union was engaged in trying to monitor those elections. 
Again, the same conclusion.
  The Organization of American States, it is the standard or it is the 
organization representing all of the governments in this hemisphere, 
they again raised the same issue.
  When we think what we are trying to do here, the goal is, first, any 
loans that go to the benefit of the people of Nicaragua, that is exempt 
anyway. From the humanitarian standpoint, we want them to have the 
loans. But if we are going to make a loan that benefits the head of 
state or the government and, as part of that, we put the same 
conditions that the OAS puts on member loans, the same conditions that 
we put on other countries with respect to the rule of law or with 
respect to transparency and free and fair elections, I don't think that 
that is unusual in the least. As a matter of fact, those are the 
conditions we apply.
  The attempt to focus on this and our frustration with it is to give 
that added boost, just as the Carter Center is trying to do, just as 
the European Union is trying to weigh in, just as the OAS is suggesting 
as we go forward that there be these reforms and transparency. I think 
it is proper that this institution does the same. I think the carve-out 
we put in the bill for humanitarian aid addresses the other issues.
  So from that standpoint, I think it is necessary for us to do what we 
can at this time to nudge this back toward free and fair elections.
  Mr. SIRES. Mr. Speaker, I again want to thank Chairman Royce, Ranking 
Member Engel, and mi hermana from Florida, my sister, Ileana Ros-
Lehtinen, for their work on this bipartisan measure and for their 
commitment to democracy in the Western Hemisphere. They have skillfully 
crafted the NICA Act to hold President Ortega accountable, while 
ensuring that the Nicaraguan people do not suffer. I am glad that we 
are advancing this measure, and I urge my colleagues to support it.
  Mr. Speaker, I yield back the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  In summing up here, the focus of this legislation is clearly to seek 
to end a practice which many in the international community find a 
vexing one, and that is it tries to ensure that the loans that are 
given to the Government of Nicaragua meet certain democratic benchmarks 
before issuing any loans that would specifically benefit those in the 
government. There is a carve-out, as I shared, for any humanitarian 
loans.
  I think the reason this approach has gained bipartisan support is 
because the United States, in this instance, will be engaged still, but 
engaged in a way where we are not encouraging corruption. I say that 
because it pushes Nicaragua to allow for free and transparent 
elections, and that should be our goal. That is the goal of other 
election observers who have been involved in the past and have 
expressed their concerns about the state of play there.
  Mr. Speaker, I thank the authors, and I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 1918, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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