[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[House]
[Pages 29730-29734]
[From the U.S. 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 ``, 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).

[[Page 29731]]




                             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 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. 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.

[[Page 29732]]

  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 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

[[Page 29733]]

     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.

                                         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)).

[[Page 29734]]

       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.

                          ____________________