[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Notices]
[Pages 59923-59927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29970]


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DEPARTMENT OF THE TREASURY
[Treasury Directive 27-04]


Organization and Functions of the Office of the Under Secretary 
(International Affairs)

November 17, 1996.
    1. Purpose. This Directive describes the organization and functions 
of the Office of the Under Secretary (International Affairs).
    2. The Under Secretary (International Affairs) advises and assists 
the Secretary and Deputy Secretary in the formulation and execution of 
U.S. international policy. These responsibilities include the 
development of policies and guidance of the Department's activities in 
the areas of international financial, economic and monetary affairs, 
trade and investment policy, international debt, environmental and 
energy policy, and U.S. participation in international financial 
institutions. The Under Secretary helps coordinate United States 
economic policies with finance ministries of the other G-7 industrial 
nations (France, Germany, Japan, United Kingdom, Canada, and Italy) and 
participates in preparing the President for annual G-7 economic 
summits. Reporting to the Under Secretary is the Assistant Secretary, 
including all of the functions of that office.
    3. The Assistant Secretary (International Affairs) reports to the 
Secretary through the Under Secretary (International Affairs) and the 
Deputy Secretary. The incumbent is a principal adviser to the 
Secretary, Deputy Secretary, and Under Secretary (International 
Affairs) in their exercise of international financial, economic, 
monetary, trade, investment, environmental and energy policies and 
programs.
    4. Organization Structure. The Assistant Secretary (International 
Affairs) supervises the Office of Program Services, the Counselor for 
Middle East Affairs, and six Deputy Assistant Secretaries: 
International Monetary and Financial Policy; Asia, the Americas and 
Africa; International Development, Debt and Environmental Policy; Trade 
and Investment Policy; Eurasia and the Middle East; and Technical 
Assistance Policy. The functions and responsibilities of the Deputy 
Assistant Secretaries are defined by the Assistant Secretary. The 
Deputy Assistant Secretaries serve under the policy guidance of the 
Assistant Secretary. Each Deputy Assistant Secretary supervises a 
number of offices managed by Directors. See the attached organization 
chart.
    5. The Deputy Assistant Secretary (International Monetary and 
Financial Policy) supervises: the Office of International Banking and 
Securities Markets; the Office of International Monetary Policy; the 
Office of Foreign Exchange Operations; and the Office of Industrial 
Nations and Global Analyses. The incumbent serves as a policy adviser 
to the Assistant Secretary (International Affairs) and is responsible 
for the following functions.
    a. Formulates and implements Treasury policies concerning:
    (1) maintenance and operation of a smoothly functioning 
international monetary system;
    (2) coordination of economic policy among industrial nations 
through bilateral relationships, the Economic

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Summit/G-7 process, the G-10 finance ministries and central banks, and 
the Organization for Economic Cooperation and Development (OECD) 
framework;
    (3) development and conduct of U.S. monetary and financial 
relations with other nations;
    (4) U.S. participation in the International Monetary Fund (IMF);
    (5) foreign exchange operations and management of U.S. reserve 
assets; and
    (6) international capital markets.
    b. Provides analyses and forecasts of economic, monetary and 
financial developments in, and the policies of, the major industrial 
nations and maintains representatives at U.S. embassies in key 
industrial countries and at the OECD.
    c. Analyzes and forecasts regional and global payment patterns and 
their implications for the functioning of the monetary system and the 
international economy.
    d. Analyzes and assembles information relating to international 
banking, portfolio investment and insurance matters and the 
international practices of U.S. and foreign banks, their regulatory 
authorities, and the impact of their activities on the operation of the 
international monetary system.
    e. Provides analyses relating to the formulation of coordinated 
international economic policies among major industrial nations.
    f. Prepares analyses and reports on current developments and near-
term prospects for the U.S. current-account balance and capital flows.
    g. Develops analytic techniques for the study of current 
international economic issues, uses macroeconomic models as tools for 
analysis of issues, and provides econometrics modeling assistance to 
other offices.
    h. Provides direction to the Federal Reserve Bank of New York 
concerning Exchange Stabilization Fund (ESF) operations under the 
authority of the Secretary of the Treasury and other Treasury officials 
who are delegated such authority to assure that operations of the 
Federal Reserve System concerning the ESF are coordinated. In this 
regard, the incumbent intensively monitors foreign exchange markets and 
maintains continuing monitoring of gold markets and related 
developments.
    6. The Deputy Assistant Secretary (Asia, the Americas and Africa) 
supervises: the Office of East and South Asian Nations; the Office of 
African Nations; the Office of Latin American and Caribbean Nations; 
and the Mexico Task Force. The incumbent serves as a policy adviser to 
the Assistant Secretary (International Affairs) and is responsible for 
the following functions.
    a. Formulates, evaluates, and implements Treasury policy and 
positions in the areas of international economics and finance dealing 
with the developing and emerging market countries of Asia, the 
Americas, and sub-Saharan Africa, and bilateral financial and economic 
assistance policies concerning these countries.
    b. Monitors the relations of individual developing and emerging 
market countries of Asia, the Americas, and sub-Saharan Africa with the 
international financial institutions (IFIs) and IFI programs in those 
countries; reviews and evaluates relations with, and programs developed 
by, the IFIs involving these developing and emerging market countries.
    c. Formulates U.S. foreign economic policies and programs 
concerning developing and emerging market countries of Asia, the 
Americas, and sub-Saharan Africa as they relate to international 
monetary stability and U.S. economic policy.
    d. Develops, and monitors closely, policy recommendations regarding 
U.S. financial relations with the developing and emerging market 
countries of Asia, the Americas, and sub-Saharan Africa, including 
overseeing compliance with the U.S.-Mexico financial agreements of 
1995, timely payment of principal and interest due from Mexico and debt 
repayment by other countries, rescheduling and other financial and 
economic policy issues.
    e. Analyzes financial sector liberalization programs and foreign 
exchange systems in the developing and emerging market countries of 
Asia, the Americas, and sub-Saharan Africa and, as delegated by the 
Assistant Secretary, negotiates with various countries to encourage 
greater openness in their financial sectors and market-oriented 
exchange regimes.
    f. Maintains acute awareness of financial and economic policies of 
these developing and emerging market countries, including stationing of 
Treasury representatives in key countries.
    g. Assists senior Administration officials by identifying and 
evaluating existing programs, issues and projects and by developing new 
and viable approaches, techniques, and alternatives for programs 
involving such considerations as:
    (1) liberalization of capital markets;
    (2) more effective utilization of bilateral and development funds 
in the developing and emerging market countries of Asia, the Americas, 
and sub-Saharan Africa;
    (3) greater integration of these developing and emerging market 
countries into the international financial and economic system;
    (4) more effective utilization of multilateral channels for 
assistance;
    (5) development of stable fiscal and monetary practices as well as 
a commitment to economic reform and adjustment in developing and 
emerging market countries of Asia, the Americas, and sub-Saharan 
Africa; and
    (6) protection of the U.S. balance of payments and similar 
international monetary matters affecting the finances of the developing 
and emerging market countries of Asia, the Americas, and sub-Saharan 
Africa.
    7. The Deputy Assistant Secretary (International Development, Debt 
and Environmental Policy) supervises: the Office of Multilateral 
Development Banks (MDBs); and the Office of International Debt Policy. 
The incumbent serves as a policy adviser to the Assistant Secretary 
(International Affairs) and is responsible for the following functions.
    a. Formulates, evaluates, and implements Treasury policy and 
positions on a wide range of economic, financial, and environmental 
issues pertaining to U.S. participation in the MDBs and international 
debt policy. This includes continuing liaison with nongovernmental 
organizations; foreign governments and international organizations; 
other Federal agencies; and academic and research institutions.
    b. Advises the Assistant Secretary (International Affairs) on 
matters that concern:
    (1) MDB financial, lending, and governance policies;
    (2) MDB environmental policies and procedures;
    (3) U.S. business and export opportunities through MDB lending;
    (4) Treasury positions on specific MDB loans and technical 
assistance proposals; and
    (5) economic and financial issues pertaining to U.S. international 
debt policy.
    c. Develops and presents Treasury positions for Federal interagency 
and international discussions concerning formulation of negotiating 
objectives, strategies, and tactics, as well as implementation of MDB 
replenishment, lending, and borrowing practices, programs, and 
objectives.
    d. Coordinates, within Treasury and with other agencies, 
implementation of the Enterprise for the Americas Initiative including, 
among other things, working with Congress to gain needed authorization 
and appropriations, leading negotiations on bilateral debt reduction, 
and carrying out Treasury's

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role as Chair of the President's Enterprise for the Americas Board.
    e. Develops, evaluates and implements Treasury policies, positions, 
and initiatives concerning commercial bank debt, capital market 
developments, official bilateral debt, and U.S. Government bilateral 
debt.
    f. Reviews policies of international and interagency bodies 
involved in development financing, such as the Development Assistance 
Committee of the OECD, the United Nations (UN) Conference on Trade and 
Development and other UN organizations, the Interagency Country Risk 
Assessment System, the Overseas Private Investment Corporation, and the 
National Advisory Council on International Monetary and Financial 
Policies.
    g. Provides technical advice on issues involved in international 
debt management and policies.
    h. Prepares policy guidance for U.S. participation in the Boards of 
Directors of the MDBs and for use by the Secretary of the Treasury in 
that official's role as U.S. Governor of the MDBs.
    8. The Deputy Assistant Secretary (Trade and Investment Policy) 
supervises: the Office of International Trade; the Office of 
International Investment; the Office of Trade Finance; and the Office 
of Financial Services Negotiations. The incumbent serves as a policy 
adviser to the Assistant Secretary (International Affairs) and is 
responsible for the following functions.
    a. Formulates, evaluates, and implements Treasury positions on:
    (1) U.S. trade and commercial policy in general;
    (2) multilateral and bilateral trade negotiations;
    (3) financial services negotiations, concerning such matters as the 
General Agreement on Trade in Services;
    (4) trade finance matters with respect to the Export-Import Bank, 
the Commodity Credit Corporation, and international organizations, such 
as the OECD;
    (5) U.S. military sales abroad;
    (6) trade programs, such as the General System of Preferences and 
textile regimes;
    (7) direct investment issues, including matters pertaining to 
national security implications of mergers and acquisitions of U.S.-
based firms by foreign entities, expropriation, the Oversees Private 
Investment Corporation, and bilateral investment treaties; and
    (8) basic natural resources which are not energy-related, in 
particular, non-fuel minerals and agricultural commodities.
    b. Provides the staff chair of the interagency Committee on Foreign 
Investment in the United States established by Executive Order 11858, 
as amended, and chaired by Treasury.
    c. Coordinates investigations under the Exon-Florio amendment 
(section 5021 of Public Law 100-418) to the Defense Production Act to 
determine the effects on national security of foreign acquisitions, 
mergers, or takeovers of U.S. companies.
    d. Drafts recommendations to the President on whether to prohibit 
or suspend transactions which are investigated under Exon-Florio, and 
drafts, in cooperation with the Office of the General Counsel, 
regulations issued pursuant to Exon-Florio.
    e. Develops and implements Treasury policies within the incumbent's 
areas of responsibility which arise in such international fora as the 
World Trade Organization (WTO), the IMF, the International Bank for 
Reconstruction and Development, and various committees of the OECD.
    f. Develops trade finance policy and provides the lead U.S. 
Government negotiator on OECD Export Credit Arrangement issues; and 
leads and coordinates interagency, U.S. Government implementation of 
Arrangement policies and agreements.
    g. Develops negotiating objectives and strategy, and provides the 
lead U.S. negotiator on financial services, excluding insurance 
matters, in the WTO.
    9. The Deputy Assistant Secretary (Eurasia and the Middle East) 
supervises: the Office of Central and Eastern European Nations; and the 
Office of Middle Eastern and Central Asian Nations. The incumbent 
serves as a policy adviser to the Assistant Secretary (International 
Affairs) and is responsible for the following functions.
    a. Formulates, evaluates, and implements Treasury policies and 
positions in the areas of international economics and finance dealing 
with countries in Central and Eastern Europe, the Middle East, North 
Africa, and Central Asia, and bilateral financial and economic 
assistance policies concerning these countries.
    b. Advises the Assistant Secretary (International Affairs) on the 
implications of financial and economic developments in these areas.
    c. Develops U.S. foreign economic policies and programs with 
respect to Central and Eastern Europe, the Middle East, North Africa, 
and Central Asia as they relate to international monetary stability and 
U.S. economic policy.
    d. Formulates, and monitors closely, policy recommendations 
regarding U.S. financial relations with Central and Eastern Europe, the 
Middle East, North Africa, and Central Asia, including debt repayment 
and rescheduling and other financial and economic policy issues.
    e. Reviews and evaluates the relations with and programs developed 
by IFIs and other Federal agencies involving countries of Central and 
Eastern Europe, the Middle East, North Africa, and Central Asia.
    f. Maintains acute awareness of financial and economic policy of 
these countries including stationing of Treasury representatives in key 
countries.
    g. Identifies and evaluates existing projects, programs and issues, 
and develops new and viable approaches, techniques, and alternatives to 
assist Treasury officials in developing policies regarding Central and 
Eastern Europe, the Middle East, North Africa, and Central Asia 
involving such considerations as:
    (1) more effective utilization of development funds;
    (2) greater integration of countries of Central and Eastern Europe, 
the Middle East, North Africa, and Central Asia into the international 
financial and economic system;
    (3) more effective utilization of multilateral channels for 
assistance;
    (4) development of stable fiscal and monetary practices and a 
commitment to economic reform and adjustment; and
    (5) protection of the U.S. balance of payments and similar 
international monetary matters affecting the finances of countries of 
Central and Eastern Europe, the Middle East, North Africa, and Central 
Asia.
    10. The Deputy Assistant Secretary (Technical Assistance Policy) 
supervises the following offices: the Office of Technical Assistance 
and the U.S.-Saudi Arabian Joint Commission Program Office. The 
incumbent serves as a policy adviser to the Assistant Secretary 
(International Affairs) on economic and financial technical assistance 
and is responsible for the following functions.
    a. Develops, evaluates and implements Treasury policies and 
positions on economic and financial technical assistance to 
transitional and developing countries including Eastern Europe and the 
former Soviet Union.
    b. Serves as U.S. coordinator of the U.S.-Saudi Arabian Joint 
Commission on Economic Cooperation and chairs its Interagency Advisory 
Policy Group.
    c. Serves as principal Treasury representative in interagency 
meetings and international negotiations concerning the provision of 
economic and financial technical assistance to foreign countries.

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    d. Maintains close contact with the various IFIs and other 
international organizations to monitor their technical assistance 
efforts and coordinate U.S. bilateral financial and economic technical 
assistance in order to maximize program effectiveness and optimize 
program efficiency.
    e. Provides timely and pertinent policy advice to senior Treasury 
officials, including legislative proposals and administrative actions 
that relate to technical assistance.
    f. Manages multi-million dollar interagency allocation agreements 
which provide bilateral economic and financial technical assistance to 
foreign countries.
    g. Provides oversight of all administrative and operational 
functions of Treasury economic and financial technical assistance 
programs, including authority to approve interagency and international 
agreements for conducting technical assistance.
    11. Counselor for Middle East Affairs serves as a policy adviser to 
the Assistant Secretary (International Affairs) for specialized 
financial and economic policy issues on the Middle East including 
multilateral development, selected regional macroeconomic issues, 
energy policy issues, and the financial interrelationship of the 
various Middle East countries.
    12 The Office of Program Services is responsible for performing 
various management and administrative functions, such as personnel, 
travel, budget, information technology, security, correspondence 
control, distribution of reports, and responses to Freedom of 
Information Act and General Accounting Office requests.
    13. Cancellation. Treasury Directive 27-04, ``Organization and 
Responsibilities of the Office of the Assistant Secretary 
(International Affairs),'' dated November 19, 1986, is superseded.
    14. Expiration Date. This Directive expires three years after the 
date of issuance unless cancelled or superseded prior to that date.
    15. Office of Primary Interest. The Office of the Under Secretary 
(International Affairs).
Jeffrey R. Shafer,
Under Secretary (International Affairs).

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[FR Doc. 96-29970 Filed 11-22-96; 8:45 am]
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