Treasury Continues Its Formal Process to Promote U.S. Policies at
the International Monetary Fund (12-JUL-04, GAO-04-928R).	 
                                                                 
Congress has shown considerable interest in legislating U.S.	 
policies regarding the International Monetary Fund (IMF or the	 
Fund). Currently, the administration is charged with responding  
to dozens of legislative mandates related to the Fund, including 
advocacy for certain Fund policies, instructions for U.S. voting 
positions on Fund assistance to borrower countries, and 	 
requirements to report to Congress on various aspects of U.S.	 
participation in the Fund. In 2003, we reported that the United  
States had 67 legislative mandates prescribing U.S. policy goals 
at the Fund. These mandates covered a wide range of policies,	 
including combating terrorism, human rights, international trade,
and weapons proliferation. As an international organization, the 
Fund is generally exempt from U.S. law. However, Congress can	 
seek to influence IMF policy by directing the Secretary of the	 
Treasury to instruct the U.S. Executive Director to pursue	 
certain policy considerations or vote in a particular way on IMF 
programs or assistance to specific countries as part of his	 
duties within the Board of the Fund. In 2000, Congress directed  
us to assess the Department of the Treasury's efforts in	 
advancing U.S. legislative mandates at the Fund. The Consolidated
Appropriations Act for Fiscal Year 20002 requires us to report	 
annually on the extent to which IMF practices are consistent with
U.S. policies as set forth in federal law. In January 2001, we	 
reported that the Treasury Department instituted a formal process
in 1999 to systematically promote congressionally mandated	 
policies at the Fund. We also found that while Treasury had had  
some influence over Fund policies, it was difficult to attribute 
the adoption of a policy within the Fund solely to the efforts of
any one member because the Fund generally makes decisions on the 
basis of consensus. In February 2003, we provided an update on	 
(1) the status of the U.S. Treasury's process for advancing	 
congressional mandates at the Fund and (2) the number of U.S.	 
legislative mandates concerning the Fund. This report provides a 
similar update for 2004.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-928R					        
    ACCNO:   A10918						        
  TITLE:     Treasury Continues Its Formal Process to Promote U.S.    
Policies at the International Monetary Fund			 
     DATE:   07/12/2004 
  SUBJECT:   International organizations			 
	     Monetary policies					 
	     Foreign policies					 
	     Legislation					 
	     Foreign loans					 
	     Economic policies					 
	     Reporting requirements				 

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GAO-04-928R

United States Government Accountability Office Washington, DC 20548

July 12, 2004

Congressional Committees

Subject: Treasury Continues Its Formal Process to Promote U.S. Policies at
the International Monetary Fund

Congress has shown considerable interest in legislating U.S. policies
regarding the International Monetary Fund (IMF or the Fund). Currently,
the administration is charged with responding to dozens of legislative
mandates related to the Fund, including advocacy for certain Fund
policies, instructions for U.S. voting positions on Fund assistance to
borrower countries, and requirements to report to Congress on various
aspects of U.S. participation in the Fund.

In 2003, we reported that the United States had 67 legislative mandates
prescribing U.S. policy goals at the Fund. These mandates covered a wide
range of policies, including combating terrorism, human rights,
international trade, and weapons proliferation. As an international
organization, the Fund is generally exempt from U.S. law. However,
Congress can seek to influence IMF policy by directing the Secretary of
the Treasury to instruct the U.S. Executive Director to pursue certain
policy considerations or vote in a particular way on IMF programs or
assistance to

1

specific countries as part of his duties within the Board of the Fund.

In 2000, Congress directed us to assess the Department of the Treasury's
efforts in advancing U.S. legislative mandates at the Fund. The
Consolidated Appropriations Act for Fiscal Year 20002 requires us to
report annually on the extent to which IMF practices are consistent with
U.S. policies as set forth in federal law. In January 2001, we reported
that the Treasury Department instituted a formal process in 1999 to
systematically promote congressionally mandated policies at the Fund. We
also found that while Treasury had had some influence over Fund policies,
it was difficult to attribute the adoption of a policy within the Fund
solely to the efforts of any one

1The Executive Board oversees the day-to-day business of the Fund. The
Board is comprised of 24 executive directors who are appointed or elected
by member countries or by groups of member countries. The President
appoints, with the advice and consent of the Senate, the U.S. Executive
Director to represent the United States on the Board.

2P.L. 106-113 sec. 504 (e).

GAO-04-928R Treasury Continues Its Formal Process to Promote U.S. Policies

3

member because the Fund generally makes decisions on the basis of
consensus. In February 2003, we provided an update on (1) the status of
the U.S. Treasury's process for advancing congressional mandates at the
Fund and (2) the number of U.S. legislative mandates concerning the Fund.
This report provides a similar update for 2004.

Results in Brief

The U.S. Treasury continues to maintain a formal process for advancing
U.S. policies at the Fund. A Treasury task force facilitates coordination
between Treasury and the U.S. Executive Director and identifies early
opportunities to influence decisions of Fund members. Since our February
2003 report, the task force has continued to meet biweekly to identify
opportunities to advance legislative mandates at the Fund. The task force
has made several efforts to enhance the monitoring and promotion of
mandates-for example, by focusing attention on countries not yet on the
IMF Board's calendar but that are likely to require Fund assistance.

We have identified a total of 67 legislative mandates that prescribe U.S.
policy goals at the IMF, the same number as in our February 2003 report.
Although the total number remained the same, some mandates have expired
since our February 2003 report and others have been added. New mandates
address policy issues such as the lifting of economic sanctions on Iraq,
human rights in Burma, and development assistance for Tibet. Treasury
continues to notify the U.S. Executive Director about new mandates through
instruction letters.

Background

The Department of the Treasury has the lead role within the executive
branch for formulating U.S. policy toward the Fund. The U.S. Executive
Director is appointed by the President and pursues U.S. policy objectives
through his/her membership in the Fund's Executive Board. Treasury's
Office of International Affairs, with the Office of the U.S. Executive
Director of the IMF, formulates, evaluates, and implements Treasury policy
concerning U.S. participation in the IMF, including the policy positions
and directives set forth in legislative mandates.

The legislative mandates that set forth U.S. policy regarding the Fund
cover a range of issues. Some of these, such as exchange rate policy and
emerging issues, including combating terrorism, are core to the Fund's
mission. This report classifies mandates into one of two broad categories:
"policy" mandates and "directed vote" mandates.4

3See U.S. General Accounting Office, International Monetary Fund: Efforts
to Advance U.S. Policies at the Fund, GAO-01-214 (Washington, D.C.: Jan.
29, 2001) and U.S. General Accounting Office, Treasury Maintains a Formal
Process to Advance U.S. Policies at the International Monetary Fund,
GAO-03-401R (Washington, D.C.: Feb. 7, 2003).

4Reporting mandates, which require Treasury to report to Congress on
various issues related to U.S. participation in the Fund, constitute a
third category of legislative mandates. This report does not cover
reporting mandates because they generally are not related to advancing
U.S. policy goals at the Fund.

Policy mandates seek to foster or advocate a certain policy at the IMF by
directing Treasury to instruct the U.S. Executive Director to use his/her
"voice" and/or "vote" on behalf of the United States at the Executive
Board to bring about a policy change at the Fund. For example, the U.S.
Executive Director is directed to encourage the IMF to adopt
internationally recognized worker rights by borrowing countries. Directed
vote mandates are more prescriptive in that they instruct the United
States to "oppose" or "vote against" loans or other IMF assistance to
particular countries or categories of countries. For example, the U.S.
Executive Director is directed to oppose financial assistance for a
country that is not compliant with the military spending and audits
mandate, as shown in enclosure I.

Treasury Has a Systematic Process for Promoting U.S. Legislative Mandates

Treasury continues to have a systematic process in place to advance U.S.
legislative mandates at the Fund. As we reported previously,5 Treasury
created the Task Force on Implementation of U.S. Policy and Reforms in the
IMF in March 1999 to strengthen the process by which the United States
pursues its objectives at the IMF. In particular, the task force was to
increase awareness among Treasury staff about the mandates and identify
early opportunities to provide input to the U.S. Executive Director to
influence decisions regarding IMF members' programs and economic reviews.
Treasury also continues to make available to all relevant staff annual
updates of its comprehensive legislative mandates manual, which contains
all mandates applicable to U.S. participation in the Fund.

The task force includes staff-level representatives from the regional and
functional offices within Treasury's Office of International Affairs,
Treasury's Office of the General Counsel, and the U.S. Executive
Director's office. Task force members continue to meet biweekly to discuss
how Treasury and the U.S. Executive Director

6

can best apply legislative mandates, given a country's economic
circumstances.

According to Treasury officials, the task force serves an important role
as a mechanism to systematically remind Treasury officials of the need to
address legislative mandates. Prior to each biweekly meeting, task force
members review a tentative schedule of IMF Executive Board meetings for
upcoming weeks to stay abreast of what countries will be discussed by the
Board. Also, Treasury officials may prepare for the meetings by obtaining
information about other opportunities to attempt to influence the IMF. For
example, Treasury officials may hold discussions with Fund officials when
an IMF mission is planned to a particular country as part of negotiations
for a new or existing program or an economic review.

At the task force meetings, members discuss opportunities to implement
mandates of potential relevance for specific countries. The aim of the
discussion is to identify the best opportunities to make a credible and
convincing case for pursuing a mandate at

5GAO-01-214; GAO-03-401R.

6Although the task force helps facilitate coordination between Treasury
officials and the U.S. Executive Director, it is not the final arbiter for
determining the U.S. policy position toward the IMF on any given issue.
The task force is not a review or approval mechanism to give Treasury
sanction to pursue individual mandates.

a given time. Once agreement is reached on how to pursue a mandate,
Treasury country officers collaborate with U.S. Executive Director staff
and functional specialists to draft a policy position for the U.S.
Executive Director. The policy position can take the form of input for a
written statement or talking points for an oral statement to the Executive
Board. The U.S. Executive Director pursues U.S. objectives, including the
legislative mandates, through various channels at the Fund. For example,
the U.S. Executive Director regularly makes oral or written statements to
the Board to apprise it of U.S. policy objectives regarding requests from
countries for new programs, Fund reviews of existing programs, and regular
Fund reviews of all members' economic policies.

Since creating the task force, Treasury has made occasional modifications
to reinforce its efforts to monitor and promote legislative mandates at
the Fund. For example, in March 2001, the task force expanded its agenda
to include not only countries scheduled for discussion by the IMF Board
but also countries that may need a program over the next several months.
This enabled task force participants to focus attention on countries not
yet on the Board's calendar. Since April 2004, Treasury officials have
initiated efforts to make the task force more useful for participants by,
for example, reorganizing the meeting agenda into a table format that
clearly indicates which mandates are relevant to which countries. They
also categorized the countries under discussion by differentiating those
that currently have an IMF program from those that may need one. Treasury
officials also stated that they plan to modify the meeting format to cover
mandates and policy issues in greater depth. They will, for example, focus
a meeting on a certain set of topics and invite those staff
representatives whose work relates to these topics to attend.

No Change in Number of U.S. Legislative Mandates Concerning the IMF

The number of U.S. legislative mandates concerning the IMF has not changed
since our February 2003 report. Through our legal analysis, supplemented
by documentation obtained from the Department of the Treasury, we
identified a total of 67 legislative mandates as of June 2004, the same
number of mandates we identified in our February 2003 report. Our list
includes one legislative mandate that Treasury does not include in its own
compendium. This mandate, passed in 1980, was intended to help promote a
policy of diversification of foreign exchange assets. According to a
Treasury official, Treasury does not include this mandate in its own
compendium because it has determined that the mandate has been overtaken
by subsequent events and is outdated.

Although the total number of mandates remains the same, each year some
mandates expire and others are added. For example, one expired mandate
relates to indirect financing for countries including China and North
Korea that was contained in a 2002 annual appropriations act. This mandate
expired when the appropriated funds to which it applied were no longer
legally available. New mandates address policy issues such as lifting of
economic sanctions on Iraq, human rights in Burma, and support for
development assistance to Tibet. Treasury continues to provide annual
notification letters concerning new mandates to the U.S. Executive
Director's office. These notification letters instruct the U.S. Executive
Director to take appropriate actions with respect to IMF mandates.

Enclosure I identifies all directed vote and policy mandates that
prescribe U.S. policy goals at the IMF under current federal law. The
enclosure briefly describes the broad policy objectives the mandates
address and some of the actions required by the U.S. Treasury and the U.S.
Executive Director. The mandates date from 1945 to 2004, with the majority
enacted in the last decade. Some mandates address multiple policy issues,
sometimes overlapping one another. Enclosure II identifies some policies
that are addressed in multiple mandates.7 For example, nine mandates
pertain to trade and seven pertain to debt issues.

Agency Comments and Our Evaluation

We received written comments on a draft of this report from the Department
of the Treasury, which are reprinted in Enclosure III. Treasury concurred
with the facts presented in this report. Treasury reiterated its position
that the extensive legislative mandates could potentially undermine its
effectiveness and influence at the Fund.

Scope and Methodology

To describe the current process that Treasury has in place to advance
congressional mandates at the IMF, we reviewed the list of topics
discussed in the biweekly task force meetings from January 2003 to May
2004, which summarizes major issues relating to the mandates. To determine
the current number of IMF mandates, we analyzed Treasury's compilation of
legislative mandates pertaining to the international financial
institutions and documents obtained through our own legal research. In
addition, we reviewed a February 2004 memorandum for distribution from
Treasury to the U.S. Executive Director concerning new mandates and
Treasury's 2004 compilation of legislative mandates applying to
international financial institutions. We used two criteria to identify the
relevant laws for this review. These criteria were (1) any current law
that explicitly directs the U.S. Executive Director to the IMF to use his
vote at the IMF to achieve a policy goal and (2) any current law that
seeks to have the U.S. Executive Director use his voice at the IMF to
promote a U.S. policy or make a policy change. To address both objectives,
we also interviewed officials in Treasury's Office of International
Affairs and the Office of the General Counsel.

We conducted this review from May to July 2004 in accordance with
generally accepted government auditing standards.

                                      ----

We are sending copies of this report to other congressional committees,
the Secretary of the Treasury, the Managing Director of the International
Monetary Fund, and other interested parties. Copies will be made available
to additional requesters. This report will be available at no charge on
the GAO Web site at http://www.gao.gov.

7Within enclosures I and II, mandates shown in bold represent mandates
added since our last report in February 2003. Some of these mandates
simply replace older mandates that had expired, while others cover new
topics.

If you have any questions about this report, please contact Joseph A.
Christoff at 202512-8979 and Stephanie J. May at 202-512-6293. We can also
be reached by e-mail at [email protected] and [email protected], respectively.
Zina Merritt, Suzanne Dove, Mary Moutsos, Ashley Alley, Mark Speight, and
Lynn Cothern made contributions to this report.

Joseph A. Christoff
Director, International Affairs and Trade

Stephanie J. May
Managing Associate General Counsel
General Counsel

Enclosures - 2

List of Congressional Committees

The Honorable Richard Lugar
Chairman
The Honorable Joseph R. Biden, Jr.
Ranking Minority Member
Committee on Foreign Relations
United States Senate

The Honorable Ted Stevens
Chairman
The Honorable Robert C. Byrd
Ranking Minority Member
Committee on Appropriations
United States Senate

The Honorable Mitch McConnell
Chairman
The Honorable Patrick J. Leahy
Ranking Minority Member
Subcommittee on Foreign Operations,

Export Financing, and Related Programs Committee on Appropriations United
States Senate

The Honorable Bill Young
Chairman
The Honorable David R. Obey
Ranking Minority Member
Committee on Appropriations
House of Representatives

The Honorable Michael G. Oxley
Chairman
The Honorable Barney Frank
Ranking Minority Member
Committee on Financial Services
House of Representatives

Enclosure I U.S. Legislative Mandatesa Concerning the IMF

       Law and date     Subject matter                               Directed 
      of enactmentb   Required actions                               vote     
                                               The Department of the          
                                         Treasury shall instruct the 
                                             U.S. Executive Director 
                                           (USED) to oppose loans to 
                                         countries whose governments 
                                        engage in a pattern of gross 
                                       violations of internationally 
                                          recognized human rights or 
                                       provide refuge to individuals 
                                                  committing acts of 
                    Human rights,         international terrorism by 
                    international         hijacking aircraft, unless 
                    terrorism,           such assistance is directed 
     22 U.S.C. 262d religious freedom,   to serve basic human needs. 
1   Oct. 3, 1977 and others,                 Severe violations of      Yes
                    including nuclear    religious freedom should be 
                    material            considered in determining if 
                    acquisition           the country has engaged in 
                                                 gross violations of 
                                          internationally recognized 
                                              human rights. Further, 
                                         Treasury is to instruct the 
                                          USED to consider a list of 
                                          concerns when carrying out 
                                           his/her duties, including 
                                         whether recipient countries 
                                              are seeking to acquire 
                                       unsafeguarded special nuclear 
                                                           material. 
                                       The President shall direct             
                                       the USED to take all          
                                       appropriate actions to keep   
                                       the compensation for IMF      
     22 U.S.C. 262e       Salaries and employees at a level          
2   Oct. 3, 1977    benefits of IMF comparable to the                   No
                             employees compensation provided         
                                       employees of both private     
                                       business and the U.S.         
                                       government in comparable      
                                       positions.                    
                                       Treasury shall instruct the            
                                       USED to use his voice and     
                                       vote on behalf of the United  
                                       States to oppose any IMF      
                                       assistance for the production 
                                       or extraction of any          
     22 U.S.C. 262h Trade, mining, and commodity or mineral for      
3  Oct. 15, 1986            surplus export, if it is in surplus        Yes
                           commodities on world markets and if the   
                                       export of such commodity or   
                                       mineral would cause           
                                       substantial injury to the     
                                       U.S. producers of the same,   
                                       similar, or competing         
                                       commodity or mineral.         
                                         Treasury shall instruct the          
                                              USED to consider, when 
                                        reviewing loans, credits, or 
                                        other uses of IMF resources, 
                     Impact of country       the effect that country 
                            adjustment     adjustment programs would 
4 22 U.S.C. 262k        programs on            have on individual       No
      Aug. 15, 1985     industries and       industries' sectors and 
                     commodity markets       international commodity 
                                          markets including specific 
                                        criteria to be considered as 
                                          a basis for a vote against 
                                          certain mining and related 
                                                  project proposals. 
                                       Treasury shall instruct the            
                                       USED to use his voice and     
                                       vote to oppose any loan,      
                                       other than for basic          
                                       humanitarian needs, to any    
                                       country that the Secretary of 
                                       the Treasury determines does  
          22 U.S.C.                    not have in place a           
5   262k-1 Sept.  Military spending functioning system for             Yes
           30, 1996         and audits reporting to civilian         
                                       authorities audits of         
                                       receipts and expenditures     
                                       that fund activities of the   
                                       armed and security forces and 
                                       that has not provided to the  
                                       IMF information about the     
                                       audit process requested by    
                                       the institution.              
                                       Treasury shall instruct the            
                                       USED to use his voice and     
                                       vote to oppose any loan,      
                                       other than for basic          
                                       humanitarian needs, for any   
          22 U.S.C.     Female genital government that the Secretary 
6   262k-2 Sept.         mutilation of the Treasury determines         Yes
           30, 1996                    has a known history of        
                                       practicing female genital     
                                       mutilation and has not taken  
                                       steps to implement            
                                       educational programs designed 
                                       to prevent this practice.     
                                         Treasury shall instruct the          
                                        USED to use aggressively his 
                                        voice and vote to vigorously 
          22 U.S.C. Trade barriers and promote policies to encourage 
7    262n-3 Oct. agricultural          the opening of markets for       No
           21, 1998 commodities         agricultural commodities and 
                                               products by requiring 
                                         recipient countries to make 
                                             efforts to reduce trade 
                                                           barriers. 
                                       Treasury shall instruct the            
                                       USED to consider, when        
                                       deciding whether to support a 
                                       country's loan program, the   
                                       extent to which IMF borrowing 
                                       countries have demonstrated a 
                                       commitment to (1) providing   
                                       accurate and complete data on 
                                       military spending; (2)        
          22 U.S.C.  Military spending establishing good and         
8    262o-1 Aug.           and good publicly accountable                No
           23, 1994         governance governance, including to end  
                                       excessive military            
                                       involvement in the economy;   
                                       and (3) to make substantial   
                                       reductions in excessive       
                                       military spending and forces. 
                                       The USED shall promote a      
                                       policy that seeks to channel  
                                       funding toward growth and     
                                       development priorities and    
                                       away from unproductive        

            Law and date                                             Directed 
                      of      Subject matter                         vote     
              enactmentb    Required actions                         
                                             expenditures, including 
                                                  military spending. 
                                             Treasury shall instruct          
                                                     the USED to use 
                                              aggressively his voice 
                                             and vote to enhance the 
                                               general effectiveness 
                                             of the IMF with respect 
                                                 to numerous issues, 
                                             including exchange rate 
                                                    stability, trade 
                                                     liberalization, 
                         Transparency, debt,  antitrust reform, core 
                         private sector,     labor standards, social 
                         trade, crisis            safety nets, sound 
                         lending, exchange       banking principles, 
                         rates, labor, the            private sector 
               22 U.S.C. environment,                burden-sharing, 
          9  262o-2 Oct. military spending,     disclosure of market       No
                21, 1998 sound banking,           information, debt, 
                         social safety nets,    crises lending, good 
                         good governance,    governance, procurement 
                         corruption, the      reform, corruption and 
                         poor, and ethnic       bribery, drugrelated 
                         and social strife         money laundering, 
                                                  excessive military 
                                                spending, ethnic and 
                                                      social strife, 
                                                       environmental 
                                                         protection, 
                                                   transparency, and 
                                                     microenterprise 
                                              lending, especially to 
                                                 the world's poorest 
                                                    heavily indebted 
                                                          countries. 
                                             Treasury shall instruct          
                                                 the USED to use his 
                                              voice and vote to urge 
                                                    the IMF to adopt 
                                             policies and procedures 
      10 22              Equal employment       that ensure that the 
     U.S.C. Nov. 5, 1990 opportunities at               IMF does not       No
    262p-4n              the IMF                discriminate against 
                                             any person on the basis 
                                                 of race, ethnicity, 
                                                   gender, color, or 
                                               religious affiliation 
                                                in any determination 
                                              related to employment. 
                                               Treasury shall direct          
                                                 the USED to use his 
                                             voice and vote to bring 
                                              about the creation and 
                                              full implementation of 
      11 22                                     policies designed to 
     U.S.C.     Aug. 23,         Respect for promote respect for and       No
    262p-4o         1994  indigenous peoples  full protection of the 
                                                 territorial rights, 
                                              traditional economies, 
                                                 cultural integrity, 
                                              traditional knowledge, 
                                                 and human rights of 
                                                 indigenous peoples. 
                                               Treasury shall direct          
                                                 the USED to use his 
                                              voice and vote to urge 
                                                    the IMF to adopt 
                                               policies to encourage 
                                              borrowing countries to 
                                                   guarantee certain 
                                                     internationally 
                                                   recognized worker 
                                               rights and to include 
      12 22     Aug. 23,     Internationally      the status of such 
     U.S.C.         1994   recognized worker   rights as an integral       No
    262p-4p                           rights      part of the policy 
                                                  dialogue with each 
                                               country. In addition, 
                                             the USED shall urge the 
                                             IMF to establish formal 
                                                procedures to screen 
                                               projects and programs 
                                             for any negative impact 
                                              in a borrowing country 
                                               with respect to those 
                                                             rights. 
                                             Treasury shall instruct          
                                             the USED to use his     
                                             voice and vote to       
      13 22     Apr. 24, State support of    oppose any loan for a   
     U.S.C.         1996 international       country for which the        Yes
    262p-4q              terrorism           Secretary of State has  
                                             made a determination    
                                             that it is a terrorist  
                                             state.                  
                                             Treasury may instruct            
                                             the USED to use         
                                             aggressively the voice  
                                             and vote of the U.S. to 
                                             require an auditing of  
                                             IMF disbursements to    
                                             ensure that no funds    
                                             are paid to persons who 
                                             commit, threaten to     
                                             commit, or support      
                                             terrorism. In addition, 
      14 22                                  if the President        
     U.S.C.     Oct. 26,           Terrorism determines that a             No
    262p-4r         2001                     country has committed   
                                             to take actions that    
                                             contribute to efforts   
                                             of the U.S. to respond  
                                             to, deter, or prevent   
                                             acts of international   
                                             terrorism, Treasury may 
                                             instruct the USED to    
                                             use the voice and vote  
                                             of the U.S. to support  
                                             any loan or other use   
                                             of IMF funds for such   
                                             country.                
                                                Treasury should urge          
                                               the IMF to complete a 
                                                 debt sustainability 
                                                analysis by December 
                                             31, 2000, and determine 
                                                eligibility for debt 
                                                  relief for as many 
                                                 countries under the 
      15 22     Nov. 29,                            modified Heavily 
     U.S.C.         1999         Debt relief Indebted Poor Countries       No
     262p-6                                  Initiative as possible. 
                                                Treasury should also 
                                                instruct the USED to 
                                             ensure that an external 
                                                   assessment of the 
                                               Heavily Indebted Poor 
                                                Countries Initiative 
                                             takes place by December 
                                                           31, 2001. 
                                             Treasury shall instruct          
                                                 the USED to use his 
                                                   voice and vote to 
                                                   promote the IMF's 
                                                    establishment of 
                                                   poverty reduction 
      16 22     Nov. 29, Extended Structural policies and procedures 
     U.S.C.         1999 Adjustment Facility   to support countries'       No
     262p-7                           reform  efforts under programs 
                                               developed and jointly 
                                                 administered by the 
                                              World Bank and the IMF 
                                                    containing those 
                                                components listed in 
                                                        the mandate. 

Page 10 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                                                                                                                                                                                                                         The USED                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                         shall                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                         recommend and                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                         work for                                                                                                                                                                                                                                                                                                    
                                                                                                      Treasury                                                                                                                                                           changes in                                                                                                                                                                                                                                                                                                  
                                                                                                         shall                                                                                                                                                           IMF                                                                                                                                                                     The USED                                                                         Treasury                                           
                                                                                                  instruct the                                                                                                                                                           guidelines to                                                                                                                                                              shall                                                                            shall                                           
                                                                                                  USED to seek                            Treasury                                         Treasury                              In                                      ensure the                                  Treasury shall                                                                                                           promote the                               The USED                              instruct the                                  Treasury 
                                                                                                     to assure                            shall                                               shall                              considering                             effectiveness                               encourage IMF                                                                        The USED                             use of IMF                             shall work                                   USED to                                     shall 
                                                                                                       that no                            instruct the                                 instruct the                              the policies                            of economic                                 member                                                                           shall notify                            programs to                           for adoption                                  initiate                              instruct the 
                                                                                                   decision by                            USED to                                      USED to work                              of the United                           adjustment                                  countries to                                The USED                             the IMF that                             assist the                            of policies                               discussions                                   USED to 
                                                                                                       the IMF                            encourage IMF                               in opposition                              States in                               programs by                                 negotiate a                                    shall                               it is U.S.                Assistance      private                          in the IMF to                                at the IMF                                  actively 
                                                                                                  departs from                            staff to                                     to financing                              foreign                           Basic considering                                 dollar-Special                            notify the                              policy that                to private    sector in                                promote                               and propose                                oppose any 
                                           Personnel     It shall be                Treatment of   U.S. policy                Investment, formulate                         Countries for countries                              lending, the                      human the effect                   Dollar-Special Drawing Rights                           IMF that it                                      the                sector of   any nation,                          exchange rate                              and vote for                                  facility 
    Law and           Directed  17 22 Dec. practices     U.S. policy     18 22 Oct. creditors in regarding the     19 22 Oct. employment, economic           20 22 Oct.     harboring        either     21 22 July               USED shall        22 22 Oct.  needs and the program       23 22 Oct. Drawing Rights substitution       24 22 Oct. Membership     is U.S.     25 22 Oct.               Palestinian     26 22 Oct. El               though     27 22 Nov.  Exchange    stability.     28 22 Nov.                adoption of     29 22 Nov.                  involving 
    date of           vote     U.S.C.  19,    at the         that no No U.S.C.  10, debt         comparability No U.S.C.  10,   and basic stabilization No  U.S.C.  10, international     harboring No U.S.C.  31,               give careful  No U.S.C.   7,   economic will have on  No U.S.C.   7,   substitution account in     No U.S.C.   7, for Taiwan policy that No U.S.C.   7,                Liberation No U.S.C.   7, Salvador,  particularly No U.S.C.  30,      rate      Also, in No U.S.C.  30, Transparency procedures to No U.S.C.  30,                 use of IMF Yes
 enactmentb                      262t 1989       IMF    initiatives,    286e-8 1978 rescheduling  of treatment    286e-9 1978 human needs programs that    286e-11 1978    terrorists international      286k 1945               consideration      286s 1980 adjustment issues such        286u 1980        account which               286v 1980 in the IMF   Taiwan be      286w 1980              Organization      286x 1980 Nicaragua,  El Salvador      286y 1983 stability determining a      286z 1983              increase both     286aa 1983                  credit by 
                                                     discussions, or                             of public and                            foster a                                    terrorists or                              to progress                    programs as jobs and                                 equitable                                    granted                             not be given                and other           and                                vote of                               the sharing                                       any 
                                                     recommendations                                   private                            broader base                                   failing to                              made in                                 investment.                                 burden-sharing                           appropriate                               membership                nations      Nicaragua,                          assistance to                                        of                                 communist 
                                                      concerning the                              creditors in                            of productive                               take measures                              reaching                                The USED                                    would exist                               membership                                 or other                            in creating                                any IMF                               information                              dictatorship 
                                                        placement or                             cases of debt                            investment                                     to prevent                              agreement                               shall also                                  among                                    in the IMF.                                status at                                     an                          borrower, the                                 among IMF                                    unless 
                                                      removal of any                              rescheduling                            and                                               acts of                              among nations                           work toward                                 participants                                                                         the IMF.                            environment                             USED shall                               members and                                   certain 
                                                           personnel                                     where                            employment,                                 international                              to reduce                               improved                                    in the                                                                                                                     that will                              take into                                the public                                conditions 
                                                     employed by the                             official U.S.                            especially in                                  terrorism.                              restrictions                            coordination                                account.                                                                                                                 stabilize a                                account                             dissemination                                  are met. 
                                                        IMF shall be                               credits are                            those                                                                                  on                                      among the                                                                                                                                                               nation's                            whether the                                of certain                                           
                                                        based on the                                 involved.                            productive                                                                             international                           IMF, the                                                                                                        Denial of                                               economy.                             borrower's                                       IMF                                           
                                                           political                                                                      activities                                                                             trade and                               World Bank,                                                                                                     membership                                                                                 policies are                               information                                           
             Subject                                   philosophy or                                                                      that are                                                                 International promote                                 and other                                                                                                       for the                                                                                      consistent                                concerning                    Denial of              
              matter                                     activity of                                                                      designed to                                                                  trade and international                           appropriate                                                                                                     Palestinian                                                                                with certain                             international                   lending to              
            Required                                            that                                                                      meet basic                                                                    economic economic                                institutions                                                                                                    Liberation                                                                                          IMF                             borrowing and                    communist              
             actions                                     individual.                                                                      human needs.                                                                 stability stability.                              in this area.                                                                                                   Organization                                                                              requirements.                                  lending.                dictatorships              

Page 11 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                                                                                                                                                                                                                         Treasury shall                                                                                                                                                                 
                                                                                                                                                                                                                                                                           instruct the                                                                                                                                                              
                                                                                                                                                                                                                                                                                USED to                                                                                                                                                              
                                                                                                                                                                                                                                                                           consult with                                                                                                                                                              
                                                                                                                                                                                                                                                                             the IMF to                                                                                                            The USED                                          
                                                                                                                                             Treasury                                                                                                                            reduce                                                                                                            shall use                                         
                                                                                                                                             shall                                                                                                                         obstacles to                            Treasury                                                                        his voice                                         
                                                                                                                                             instruct the                                                                                                                           and                            shall                                      Treasury                             and vote to                                       
                                                                                                                                             USED to                                                                                                                       restrictions                            instruct the                               shall                                urge the IMF                                      
                                                                                                                                             oppose and                                                                                                                            upon                            USED to seek                               instruct the                         to continue                                       
                                                                                                                                             vote against                                                                                                                 international                            policy                                     USED to                              to develop                                        
                                                            Treasury                                                                         any IMF                                                                                                                          trade and                            changes at                                 promote                              an economic                                       
                                                               shall                                                                         drawing by a                               Treasury shall                              Treasury                              investment in                            the IMF that                               regularly                            methodology                                       
                                                        instruct the                                                                         member                                       instruct the                                 shall                                  goods and                            will result                                and                                  to measure                                        
                                                             USED to                          The USED shall                                 country that                                      USED to                          instruct the                                  services,                            in a review                                vigorously                           the level of                                      
                                                         propose and                          recommend and                                  would be                                     propose that                               USED to                                  eliminate                            of policy                                  in program                           military                                          
                                                        work for the                          shall work for                                 used to                                     the IMF adopt                           propose and                               unfair trade                            prescriptions                              and quota                            spending by                                       
                                                         adoption of                          changes in IMF                                 repay loans                                 policies with                          work for the                             and investment                            implemented                                increase                             every                                             
                                                              an IMF                          guidelines and                                 imprudently                                    respect to                           adoption of                             practices, and                            by the IMF to                              discussions                          developing                                        
                                                              policy                   Trade, policies that                                  made by                                     international                          IMF policies                                    promote                            determine                                  a variety of                         country. The                                      
                                            Elimination  encouraging                     bank encourage                                      banking                                          lending,                         regarding the                                   mutually                  Impact of both if IMF                     IMF policy policy                      Measures USED shall                                        
    Law and                     30 22 Nov. of predatory   members to     31 22 Nov. solvency, countries to           32 22 Nov.         Bank institutions      33 22 Nov. International    including a     34 22 Nov.      IMF       rate of     35 22 Nov.  Elimination   advantageous     36 22 Dec.         IMF objectives        37 22 Oct.    concerning proposals        38 22 Oct.       to also urge        39 22 Nov.                       
    date of           Directed U.S.C.  30, agricultural    eliminate No U.S.C.  30,       and formulate         Yes U.S.C.  30, bailouts and to a member  Yes U.S.C.  30,   lending and      policy to No U.S.C.  30, interest  remuneration No U.S.C.  30, of trade and       economic No U.S.C.  19, programs on were met and  No U.S.C.  24, transparency, including a  No U.S.C.  24,   reduce the IMF to   No U.S.C.  29,      Debt             No
 enactmentb           vote      286bb 1983       export          all     286cc 1983  external economic               286dd 1983         debt country, and      286ee 1983      external    examine the     286ff 1983    rates   paid on use     286gg 1983   investment relations. The     286kk 1989    the poor the social        286ll 1992 the poor, and proposal         286mm 1992 military provide          286nn 1999 reduction             
                                              subsidies    predatory                     debt adjustment                        rescheduling to ensure                     indebtedness      trend and                           of members'                restrictions     USED shall                    and the and                                    the designed to                 spending annual                                            
                                                        agricultural                servicing programs that                                  that the IMF                                    volume of                                 quota                               also work to                environment environmental                  environment alleviate                            reports that                                      
                                                              export                          deal with their                                encourages                                       external                         subscriptions                               have the IMF                            impacts of                                 poverty,                             estimate the                                      
                                                           subsidies                          balance-ofpayment                              borrowing                                    indebtedness                          and the rate                                     obtain                            such                                       promote                              level of                              Treasury is 
                                                          that might                          difficulties and                               countries                                  of private and                         of charges on                             agreement with                            prescriptions                              policy                               military                               authorized 
                                                           result in                          external debt                                  and banking                                        public                          IMF drawings                               countries to                            and the                                    audits in                            spending by                           to instruct 
                                                                 the                          owed to private                                institutions                                 borrowers in                              to bring                                  eliminate                            establishment                              the areas of                         each                                  the USED to 
                                                        reduction of                          banks. The USED                                to                                             Article IV                         those in line                             certain unfair                            of procedures                              poverty and                          developing                                vote to 
                                                        other member                          shall also oppose                              renegotiate                                consultations.                           with market                                  trade and                            to ensure                                  the                                  country and                           approve the 
                                                          countries'                          and vote against                               a                                                                                        rates.                                 investment                            that policy                                environment,                         urge the IMF                              sale of 
                                                            exports.                          fund assistance                                rescheduling                                                                                                                 practices and                            options that                               and allow                            to include                              gold such 
                                                                                              for a country                                  of debt that                                                                                                                  shall take a                            reduce the                                 public                               in every                                     that 
                                                                                              whose annual                                   is                                                                                                                               country's                            potential                                  access to                            Article IV                               proceeds 
                                                                                              external debt                                  consistent                                                                                                                   progress into                            adverse                                    certain IMF                          consultation                          can be used 
                                                                                              services exceed                                with safe                                                                                                                       account in                            impact on the                              information.                         with such                             toward debt 
                                                                                              85 percent of its                              and sound                                                                                                                      formulating                            poor or the                                                                     countries an                            reduction 
                                                                                              annual export                                  banking                                                                                                                       its position                            environment                                                                     analysis on                               for the 
                                                                                              earnings, unless                               practices                                                                                                                      on requests                            are included                                                                    this issue.                               Heavily 
             Subject                                                                          Treasury can                                   and the                                                                                                                      for loans for                            in future                                                                                                                Indebted 
              matter                                                                          document why an                                country's                                                                                                                         periodic                            economic                                                                                                                     Poor 
            Required                                                                          exception should                               ability to                                                                                                                       financial                            reform                                                                                                                  Countries 
             actions                                                                          be given.                                      pay.                                                                                                                        disbursements.                            programs.                                                                                                             Initiative. 

Page 12 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                                                                                                                                                                                 The U.S.                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                 government                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                 shall oppose                                                                                                                                                                                                                                
                                                                                                                                                                                                                                 the extension                                                                                                                                                                                                                               
                                                                                                                                                                                                                                 of any IMF                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                 loan or                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                 financial or                                                                                                                                                                                                                                
                                                                                                                                                                                                                                 technical                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                 assistance to                                                                                                                                                                                                                               
                                                                                                                                                                                                                                 any country                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                 that the                                                                                                                                                                                                                     The United     
                                                                                                                                                                                                                                 President                                                                                                                                                                                                                    States shall   
                                                                                                                                                                                                                                 determines                                                                                                                                                                                                                   oppose any IMF 
                                                                                                                                                                                                                                 either                                                                                                                                                                                                                       loan or        
                                                                                                                                                                                                                                 delivers                                                                                                                                                                                                                     financial or   
                                                                                                                                                                                                                                 nuclear                                  The United                                                                                                                                                                          technical      
                                                                                                                                                                                                                                 reprocessing                             States shall                                                                                                                                                                        assistance to  
                                                                                                                                                                                                                                 equipment,                               oppose, in                                                                                                                                                                          either a       
                                                                                                                                                                                                                                 material, or                             accordance                                                                                                                                                                          foreign        
                                                                                                                                                                                                                                 technology to                            with 22                                                                                                                                                                             government or  
                                                                                                                                                                                                                                 any country                              U.S.C. 262d,                                                                                                                                                                        any foreign    
                                                                                                                                                                                                                                 or receives                              the extension                                                                                                                                                                       person,        
                                                                                                                                                                                             Treasury                            such                                     of any loan                                                                                                                                                                         officer, or    
                                                                                                                                                       Treasury                                 shall                            equipment,                               or financial                                                                                                                                                                        employee of    
                                                                                                                                                          shall                              instruct                            materials, or                            or technical                                                                                                                                                                        the            
                                                                                                                                                   instruct the                           the USED to                            technology                               assistance to                                                                                                                                                                       Organization   
                                                                                                                                                   USED to vote                               use the                            from another                             any country                                                                                                                                                                         for the        
                                                                                                                                                    against any                                voice,                            country, or                              that the                                                                                                                                                                            Prohibition of 
                                                                                                                                                     use of IMF            (P.L.            vote, and                            is a                           Sanctions President                                                                                                                                                                      U.S. Chemical       
                                                                                                                                                      funds for      43 22 107-228,         influence                    Nuclear nonnuclear                       against determines                                                                                                                                                               liability, Weapons whose  
    Law and           Directed  40 22 Nov.                                       41 22 Dec. Integration                   42 22 Apr. Expropriation  the benefit     U.S.C. sec.      East      of the       44 22 Apr. transfers state that         45 22 Dec.     use of uses chemical      46 22 Mar. Opposition                     47 22 Apr. Nuclear                                  48 22 Oct. Religious                       49 22 Oct. confidential actions taken  
    date of           vote     U.S.C.   6,                                   No U.S.C.  30,    of women               No U.S.C.  30, of U.S.             of any Yes   2656 633,     Timor      United No   U.S.C.  30,       and exports from  Yes U.S.C.   4,   chemical or biological Yes U.S.C.  12,   to Cuban                Yes U.S.C.  30, nonproliferation                    Yes U.S.C.  27,   freedom                  Yes U.S.C.  21,     business in the         Yes
 enactmentb                     286oo 2000                                        2225 1974                               2370a 1994 property      country that       note Sept.            States to    2799aa-1 1994   illegal the United          5605 1991        and weapons             6034 1996 membership                      6302 1994                                           6445 1998                                  6713 1998 information, implementation 
                                                                                                                                                     has, after            30,                support                    exports States                        biological either in                                                                                                                                                              and chemical of the         
                                                                                                                                                          1956,            2002)             economic                            illegally any                    weapons violation of                                                                                                                                                                weapons Chemical       
                                                                                                        Treasury is                                nationalized                                   and                            material,                                international                                                                                                                                                                       Weapons        
                                                                                                        requested to                                         or                            democratic                            equipment, or                            law or                                                                                                                                                                              Convention     
                                                                                                        instruct the                               expropriated                           development                            technology                               against its                                                                                                                                                                         make the       
                                                         It is the policy of                            USED to                                            U.S.                               in East                            that would                               own                                                                                                                                                                                 United States  
                                                         the United States                              encourage and                                  property                                Timor.                            contribute                               nationals.                                                                                                                                                                          liable, or who 
                                                         to work to                                     promote the                                     without                                                                  significantly                            The President                                                                                                                                                                       knowingly      
                                                         implement reforms                              integration                                compensation                                                                  to its                                   may waive                                                                                                                                                                           divulge U.S.   
                                                         in the IMF to                                  of women into                               or adequate                                                                  ability to                               application                                                                                                                                                                         confidential   
                                                         achieve the                                    the national                               arbitration,                                                                  manufacture a                            of this                                  Treasury shall                                                                                                                             business       
                                                         following goals:                               economies of                                 unless the                                                                  nuclear                                  section under                              instruct the                                      Treasury shall                                                                         information,   
                                                         primarily using                                IMF member                                    funds are                                                                  explosive                                certain                                     USED to use                                   instruct the USED                                                                         or in the case 
                                                         short-term                                     countries and                               directed to                                                                  device and                               conditions.                               the voice and                                    to use the voice                           The President                                 of a           
                                                         balance-of-payments                            into                                           programs                                                                  will be used                                                                         vote of the                                     and vote of the                           shall instruct                                government,    
                                                         financing, limiting                            professional                                 that serve                                                                  for such a                                                                         United States                                    United States to                           the USED to                                   encourage or   
                                                         the use of                                     positions                                     the basic                                                                  device. The                                                                            to oppose                                   oppose any use of                           oppose and vote                               assist a       
                                                         medium-term                                    within the                                  human needs                                                                  President may                                                                       admission of                                        IMF funds to                           against loans                                 person in      
                                                         financing,                                     IMF                                              of the                                                                  waive                                                                                  Cuba as a                                         promote the                           primarily                                     making such    
                                                         introducing premium                            organization.                               citizens of                                                                  application                                                                        member of the                                      acquisition of                           benefiting a                                  disclosures.   
                                                         pricing for lending                            In addition,                                       that                                                                  of this                                                                            IMF until the                                       unsafeguarded                           foreign                                                      
                                                         that is greater                                Treasury is                                 country, or                                                                  section with                                                                           President                                     special nuclear                           government,                                                  
                                                         than 200 percent of                            to take any                                         the                                                                  respect to                                                                             submits a                                     material or the                           agency,                                                      
                                                         a member's quota in                            progress or                                   President                                                                  India and                                                                          determination                                        development,                           instrumentality,                                             
                                              Short- and the IMF, and                                   lack of                                     waives this                                                                  Pakistan                                                                                  that a                                     stockpiling, or                           or official                                                  
                                             medium-term redressing cases of                            progress into                               prohibition                                                                  under certain                                                                     democratically                                  use of any nuclear                           determined by                                                
             Subject                          financing, misreporting of                                account when                               on the basis                                                                  conditions.                                                                              elected                                    explosive device                           the President to                                             
              matter                       misreporting, information in the                             making                                          of U.S.                                                                  (See P.L.                                                                          government is                                              by any                           be a violator of                                             
            Required                         and premium context of IMF                                 contributions                                  national                                                                  106-79, sec.                                                                         in power in                                  non-nuclear-weapon                           religious                                                    
             actions                             pricing programs.                                      to the IMF.                                  interests.                                                                  9001.)                                                                                     Cuba.                                              state.                           freedoms.                                                    

Page 13 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                                                                                                                                                                                                                                If the                                                                                                
                                                                                                                                                                                                                                                                                President                                                                                         
                                                                                                                                                                                                                                                                                certifies to                                                                                      
                                                                                                                                                                                                                                                                                the                                                                                               
                                                                                                                                                                                                                                                                                appropriate                                                                                       
                                                                                                                                                                                                                                                                                congressional                                                                                     
                                                                                                                                                                                                                                                                                committees                                                                                        
                                                                                                                                                                                                                                                                                that certain                                                                                      
                                                                                                                                                                                                                                                                                condition have                                                                                    
                                                                                                                                                                                                                                                                                been met in                                                                                       
                                                                                                                                                                                                                                                                                Zimbabwe,                                                                                         
                                                                                                                                                                                                                                                                                including the                                                                                     
                                                                                                                                                                                                                                                                                restoration of                                                                                    
                                                                                                 The President                                                                                                                                                                  the rule of                                                                                       
                                                                                                 will instruct                                                                                                                                                                  law and a                                                                                         
                                                                                                   the USED to                                                                                                                                                                  commitment to                                                                                     
                                                                                                 vote against,                                                                                                                                                                  equitable,                                                                                        
                                                                                                    and to use                                                                                                                                                                  legal, and                                                                                        
                                                                                                      his best                                                                                                                                                                  transparent                                                                                       
                                                                                                    efforts to                                                                               Treasury                                                                           land reform,                                                                                      
                                                                                                     deny, any                                                                                  shall                                                                           then the                                                                                          
                                                                                                 loan or other                                                                           instruct the                                                                           Treasury                                                                                          
                                                                                                    use of IMF                                                                           USED to vote                                                                           should direct                                                                      Treasury shall 
                                                                                                 funds for the                                                                            against any                                                                           the USED to                                                                          instruct the 
                                                                                                    subsequent                                                                            utilization                                                                           propose to                                                                         USED to oppose 
                                                                                                   fiscal year                                                                           of IMF funds                                                                           undertake                                                                        and vote against 
                                                                                                  to a country                                                                              for Burma                                                                           financial and                                                                       extending any 
                                                                                                 that fails to                                     Treasury                                until such                                                                           technical                                                                             IMF loan or 
                                                     Treasury shall                               comply or is                                        shall                               time as the                                                                           support for                                                                          financial or 
                                                     instruct the                                   not making                                 instruct the                                 President                                                                           Zimbabwe,                                                                               technical 
                                                     USED to use the                               significant                                  USED to use                              certifies to                                                                           especially                                                                          assistance to 
                                                     voice and vote                                 efforts to                                the voice and                                  Congress                                                                           support that                                                                          Burma until 
                                                     of the United                                bring itself                                  vote of the                                that Burma                                                                           is intended to                                                                            certain 
                                                     States to                                            into                                United States                                  has made                                                                           promote                                After April                                 conditions are 
                                                     support projects                               compliance                                to oppose any                                measurable                                                                           Zimbabwe's                             10, 2003,                                   met, including 
                                         (P.L.       in Tibet, so                                     with the                                          IMF                                       and                                                                           economic                               and every 6                note              that the SPDC 
                                50 22 107-228,       long as the                                       minimum      52 50                     assistance to              570, Burma and   sustainable                  504,                                                     recovery and                  6,       months                    (P.L.   Burmese         has made 
    Law and           Directed U.S.C.     sec.       projects are         51 22 Oct.      Combat standards for     U.S.C.           Serbia or           the      53 P.L. Sep. human       progress in               54 Nov.         IMF Treasury shall    55 P.L. Dec.          development,        56 P.L. Oct.       thereafter,       57 50 108-61,   Freedom      substantial 
    date of           vote       6901     616, Tibet designed in      No U.S.C.  28, trafficking           the Yes   1701          Montenegro   governments Yes 104-208,  30, rights and    improving Yes P.L.106-113,  29, Operational   instruct the No 107-99,  21, Zimbabwe the            Yes 107-245,  21, Sudan if the       Yes U.S.C. sec. 5,       and  progress to end Yes
 enactmentb                      note Sep. 30,       accordance with       7107 2000  in persons   elimination       note                      of Serbia or         sec. 1996 democratic human rights             sec. 1999      Budget    USED to use    sec. 4, 2001          stabilization          sec. 2002       President          1701    Jul. Democracy     human rights 
                                         2002)       certain                                                of                                  Montenegro,                   government    practices                                    the voice and                          of the                                 certifies                   28,       Act   violations, to 
                                                     enumerated                                    trafficking                                   except for                                       and                                         vote and                          Zimbabwean                             that the                  2003)                implement a 
                                                     principles, such                              in persons.                                  basic human                              implementing                                     influence of                          dollar, and                            government                                      democratic 
                                                     as that the                                    If certain                                     needs or                              a democratic                                      the U.S. to                          the viability                          of Sudan has                               government, and 
                                                     project fosters                              requirements                                     unless a                                government                                             urge                          of Zimbabwe's                          not engaged                                  that Burma is 
                                                     self-sufficiency                            are met, this                                proper waiver                              in Burma, or                                   vigorously the                          democratic                             in good                                     not designated 
                                                     and                                          mandate does                                           or                                       the                                      IMF both to                          institutions.                          faith                                         as a country 
                                                     self-reliance of                             not apply to                                certification                                 President                                      publish the                          Until the                              negotiations                               that has failed 
                                                     Tibetans.                                    humanitarian                                     is made.                                waives the                                      operational                          President                              to achieve a                               demonstrably to 
                                                                                                   assistance,                                                                            sanction by                                   budgets of the                          makes a                                permanent                                    adhere to its 
                                                                                                 trade-related                                                                             certifying                                         IMF on a                          certification,                         and just                                       obligations 
                                                                                                   assistance,                                                                            to Congress                                        quarterly                          however, and                           peace                                                under 
                                                                                                            or                                                                               that the                                       basis, not                          except as may                          agreement,                                   international 
                                                                                                   development                                                                            sanction is                                   later than one                          be required to                         or has                                    counternarcotics 
                                                                                                    assistance                                                                            contrary to                                   year after the                          meet basic                             unreasonably                                   agreements. 
                                                                                                    and can be                                                                                   U.S.                                       end of the                          human needs or                         interfered                                                 
                                                                                                 waived by the                                                                               national                                   period covered                          for good                               with                                                       
                                                                                                  President if                                                                             interests.                                   by the budget,                          governance,                            humanitarian                                               
                                                                                                           the                                                                                                                                  and to                          the Treasury                           efforts in                                                 
                                                                                                  continuation                                                                                                                             continue to                          shall instruct                         Sudan, then                                                
                                                                                                 of assistance                                                                                                                                   forgo                          the USED to                            the Treasury                                               
                                                                                                     is in the                                                                                                                          reimbursements                          oppose and                             shall                                                      
                                                                                                      national                                                                                                                                  of the                          vote against                           instruct the                                               
                                                                                                     interest.                                                                                                                                expenses                          any IMF loan,                          USED to                                                    
                                                                                                                                                                                                                                           incurred by                          credit, or                             continue to                                                
                                                                                                                          (P.L.                                                                                                             the IMF in                          guarantee to                           vote                                                       
                                                                                                                          103-160,                                                                                                       administering                          the government                         against, and                                               
                                                                                                                          sec.                                                                                                            the Enhanced                          of Zimbabwe or                         actively                                                   
                                                                                                                          1511,                                                                                                             Structural                          any                                    oppose, any                                                
                                                                                                                          Nov. 30,                                                                                                          Adjustment                          cancellation                           extension of                                               
                                                                                                                          1993 &                                                                                                             Facility,                          or reduction                           any IMF                                                    
                                                                                                                          P.L.                                                                                                               until the                          of                                     loan,                                                      
                                                                                                                          104-208,                                                                                                             Heavily                          indebtedness                           credit, or                                                 
             Subject                                                                                                      sec.                                                                                                           Indebted Poor                          owed by the                            guarantee to                                               
              matter                                                                                                      540,                                                                                                               Countries                          government of                          the                                                        
            Required                                                                                                      Feb. 12,                                                                                                       initiative is                          Zimbabwe to                            government                                                 
             actions                                                                                                      1996)                                                                                                            terminated.                          the IMF.                               of Sudan.                                                  

Page 14 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                                                       No funds                                                                                                                                                                                                                                                                                                                                    
                                                                                                   appropriated                                                                                                                                                                                                                                                                                                                                
                                                                                                 by the Foreign                                                                                                                                                                                                                                                                                                                                
                                                                                                    Operations,                                                                                                                                                                                                                                                                                                                                
                                                                                                         Export                                                                                                                                                                                                                                                                                                                                
                                                                                                 Financing, and                                                                                                                                                                                                                                  Treasury shall                                                                                
                                                                                                        Related                                                                                                                                                                                                                                  instruct the                                                                                  
                                                                                                       Programs                                                                                                         Treasury shall                                                                                                           USED to vote                                                                                  
                                                                                                 Appropriations                                                                                                         instruct the                                                                                                             against any new                                                                               
                                                                                                 Act, 2004, may                                                                                                         USED to vote                                                                                                             project                                                                                       
                                                                                                     be made as                                                                                                         against any                                                                                                              involving the                                                                                 
                                                                                                 payment to the                                                                                                         extension of                                                                                                             extension of                                                                                  
                                                        Provisions                                IMF while the                                                                                                         any IMF loans                                                                                                            financial or                                                                                  
                                                       of law that                                      USED is                              Treasury                                                                   to the                                                                              Treasury                             technical                                                                                     
                                                        direct the                               compensated by                              shall                                  Treasury                            government of                            Treasury shall                               should                             assistance to                           Treasury shall                                        
                                                            United                                 the IMF at a                              instruct                                  shall                            Zimbabwe,                                  instruct the                             instruct                             any country                             instruct the                              After March 
                                                            States                                   rate that,                              the USED to                            instruct                            except to meet                          USED to use the                             the USED                             whose                                   USED to oppose                            31, 2004,   
                                                        government                                together with                              use the                             the USED to                            basic human                              voice and vote                           to use the                             authorities have                        any loan, grant,                          Treasury    
                                                           to vote                                          the                              voice and                            oppose and                            needs or to                               of the United                            voice and                             failed, as                              strategy, or                              should      
                                                        against or                                 compensation                              vote of the                                vote                            promote                                       States to                              vote of                             determined by                           policy of the                             instruct    
                                                            oppose                                     the USED                              United                                  against                            democracy,                             support projects                           the United                             the Secretary of                        IMF that would                            the USED to 
                                                          loans or                                receives from                              States to                             extending                            unless the                             in Tibet, if the                            States to                   Countries State, to take                          require user                              support     
                                       1503,             other use             501,                  the United             514, Trade,      oppose any               531,         IMF loans              557,          Secretary of                558,        projects do not             561,              oppose              570, providing necessary and                 571,      fees or service               572,        loans and   
    Law and           Directed 58 P.L. Apr.    Lifting   of funds,     59 P.L. Jan. Compensation  States, is in     60 P.L. Jan. mining, and IMF              61 P.L. Jan.                or      62 P.L. Jan.          State               63 P.L. Jan.                provide     64 P.L. Jan.            loans to      65 P.L. Jan. sanctuary significant           66 P.L. Jan. User charges on poor       67 P.L. Jan.        assistance  
    date of           vote     108-11, 16,    of Iraqi   including No 108-199,  23, for the USED  excess of the No 108-199,  23, surplus     assistance  Yes 108-199,  23, Burma   financial Yes 108-199,  23, Zimbabwe determines and Yes 108-199,  23, Tibet   incentives for No 108-199,  23, Cambodia        the Yes 108-199,  23,        to steps to         Yes 108-199,  23, fees people for       Yes 108-199,  23, Serbia to the      Yes
 enactmentb                       sec. 2003  Sanctions         for        sec. 2004               rate provided        sec. 2004 commodities for the             sec. 2004                or         sec. 2004          certifies to           sec. 2004          migration and        sec. 2004             central         sec. 2004  indicted apprehend and            sec. 2004      primary                  sec. 2004        Yugoslavian 
                                                         financial                                       for an                              production                            technical                            the Committees                            settlement of                           government                         war transfer to the                         education or                              government  
                                                                or                                   individual                              or                                   assistance                            on                                         non-Tibetans                                   of                   criminals International                           primary                                   subject to  
                                                         technical                                  occupying a                              extraction                               or any                            Appropriations                            into Tibet or                            Cambodia,                             Criminal                                healthcare,                               certain     
                                                       assistance,                                  position at                              of any                                    other                            that the rule                            facilitate the                               except                             Tribunal for the                        including                                 conditions, 
                                                        in the IMF                                  level IV of                              commodity                           utilization                            of law has                                  transfer of                             loans to                             former                                  prevention and                            including   
                                                          for Iraq                                the Executive                              or mineral                               of IMF                            been restored                              ownership of                              support                             Yugoslavia all                          treatment                                 that the    
                                                         shall not                               Schedule under                              for export,                            funds to                            in Zimbabwe,                           Tibetan land and                                basic                             persons indicted                        efforts for                               Yugoslavian 
                                                                be                               5 U.S.C. 5315,                              if it is in                             and for                            including                                       natural                                human                             by the Tribunal                         Human                                     government  
                                                         construed                                 or while the                              surplus on                               Burma.                            respect for                                resources to                               needs.                             and to otherwise                        Immunodeficiency                          is taking   
                                                       as applying                               alternate U.S.                              world                                                                      ownership and                             non-Tibetans;                                                                  cooperate with                          Virus/Acquired                            steps       
                                                          to Iraq.                                  Director is                              markets and                                                                title to                                 are based on a                                                                  the Tribunal.                           Immune                                    consistent  
                                                                                                 compensated by                              if the                                                                     property and                             thorough needs                                                                  This section                            Deficiency                                with the    
                                                                                                   the IMF at a                              assistance                                                                 freedom of                                  assessment;                                                                  does not apply                          Syndrome,                                 Dayton      
                                                                                                 rate in excess                              will cause                                                                 speech and                                       foster                                                                  to humanitarian                         malaria,                                  Peace       
                                                                                                    of the rate                              substantial                                                                association.                           self-sufficiency                                                                  assistance and                          tuberculosis,                             Accord to   
                                                                                                   provided for                              injury to                                                                                                           of the Tibetan                                                                  assistance for                          and infant,                               end         
                                                                                                  an individual                              the U.S.                                                                                                                people and                                                                  democratization.                        child and                                 financial,  
                                                                                                    occupying a                              producers                                                                                                              respect for                                                                                                          maternal                                  political,  
                                                                                                    position at                              of the                                                                                                             Tibetan culture                                                                                                          well-being, in                            security,   
             Subject                                                                             level V of the                              same,                                                                                                              and traditions;                                                                                                          connection with                           and other   
              matter                                                                                  Executive                              similar, or                                                                                                        and are subject                                                                                                          the IMF's                                 support     
            Required                                                                             Schedule under                              competing                                                                                                             to effective                                                                                                          financing                                 that served 
             actions                                                                             5 U.S.C. 5316.                              commodity.                                                                                                             monitoring.                                                                                                          program.                                  to maintain 

    Law and date of Subject matter                                   Directed 
         enactmentb       Required                                   vote     
                           actions                                   
                                           separate Republika Srpska 
                                       institutions. With respect to 
                                       such loans, 22 U.S.C. 262k-1, 
                                      which requires transparency of 
                                         military budgets, shall not 
                                                              apply. 

Source: GAO.

Notes:

The information shown in this enclosure is based on a GAO analysis of
policy and directed vote legislative mandates concerning the IMF.

Mandates shown in bold represent mandates that were enacted since our last
report in February 2003 and simply replace older mandates that had
expired. Mandates shown in bold with a shaded background represent new
mandates that were added in recent legislation since our February 2003
report.

Mandates contained in FY 2004 Appropriations Acts remain in effect through
January 31, 2004, under a continuing resolution (P.L. 108-35, Making
Further Continuing Appropriations for the Fiscal Year 2004, and For Other
Purposes).

aTreasury puts mandates in three broad categories: "policy," "directed
vote," and "reporting". Policy mandates direct the United States to foster
or urge a certain policy at the IMF. Directed vote mandates instruct the
United States to "oppose" or "vote against" loans or other IMF assistance.
Reporting mandates are outside the scope of this report.

bThis column reports the original date of enactment. However, many of
these mandates were amended subsequent to this date.

Enclosure II
Examples of Broad Policies that Are Addressed in Multiple Lawsa

Page 16 GAO-04-928R Treasury Continues Its Formal Process to Promote U.S.
                                    Policies
                                                                           22                                                                                                                                                                                          
                                                                         U.S.C.                                                                                                                                                                                        
                                                                         286e-8                                                                                                                                                                                        
                                                                         (Oct.                                                                                                                                                                                         
                                                                          10,                                                                                                                                                                                          
                                                                         1978)                                                                                                                                                                                         
                                                                           22                                                                                                                                                                                          
                                                                         U.S.C.                                                                                                                                        22                                              
                                22                                       286cc                                                                                                                                       U.S.C.                                            
                              U.S.C.                                     (Nov.                                                                                                                                       286kk              22                             
                               2225                          P.L.         30,                                                                                                                                        (Dec.            U.S.C.                           
                              (Dec.                        104-208,      1983)                                                                                                                                        19,             286mm                            
                               30,              22         sec. 570        22                                   22                                                                   22                             1989) 22          (Oct.                            
                             1974) 22         U.S.C.        (Sep.        U.S.C.                               U.S.C.                                              22               U.S.C.                            U.S.C.            24,                             
                              U.S.C           286cc          30,         286dd                                286kk                                             U.S.C.             286e-9                            286ll            1992)                            
                               262e           (Nov.        1996) 50      (Nov.               22               (Dec.              22                22            262d              (Oct.          22                 (Oct.              22                             
                             (Oct. 3,          30,          U.S.C.        30,              U.S.C.              19,             U.S.C.            U.S.C.        (Oct. 3,             10,         U.S.C.                24,             U.S.C.                  
                             1977) 22         1983)          1701        1983)              2225              1989)             286y             262o-1        1977) 22            1978)        262p-4p             1992) 22          262o-1                  
                              U.S.C.            22           note          22              (Dec.                22             (Nov.             (Aug.          U.S.C.               22          (Aug.               U.S.C.  Military (Aug.                   
  Broad       Administrative   262t           U.S.C.        (P.L.        U.S.C.             30,               U.S.C. Exchange   30,               23,          262p-4o             U.S.C.         23,     Poverty    262o-2  spending  23,     Nuclear and    
 policy   Law and personnel   (Dec.   Banking 286dd  Burma 108-61,  Debt 286ee  Employment 1974)  Environment 286ll    rate    1983)  Governance 1994)  Human   (Aug.   Investment  286s  Labor  1994)  alleviation  (Oct.     and    1994)      chemical     
objective        matters       19,            (Nov.         sec. 5       (Nov.               22               (Oct.  stability   22                22   rights   23,               (Oct.          22        and       21,    military   22   nonproliferation 
                             1989) 22          30,          (July         30,              U.S.C.              24,             U.S.C.            U.S.C.         1994)                7,         U.S.C.   education  1998) 22  audit   U.S.C.                  
                              U.S.C.          1983)          28,         1983)             286e-9             1992)            262o-2            262o-2          P.L.              1980)        262o-2               U.S.C.           262k-1                  
                             262p-4n            22          2003))         22              (Oct.                22             (Oct.             (Oct.         104-208,              22          (Oct.               262p-7           (Sept.                  
                             (Nov. 5,         U.S.C.         P.L.        U.S.C.             10,               U.S.C.            21,               21,          Sec. 570            U.S.C.         21,                (Nov.             30,                    
                              1990)           262o-2       108-199,      262o-2            1978)              262o-2           1998)             1998)          (Sept.             286gg         1998)                29,             1996)                      22
                               P.L.           (Oct.        sec. 531      (Oct.                                (Oct.                                              30,               (Nov.                             1999)              22                     U.S.C.
                             108-199,          21,          (Jan.         21,                                  21,                                              1996)               30,                               P.L.            U.S.C.                  2799aa-1
                             sec. 501         1998)          23,         1998)                                1998)                                                                1983)                            108-199,          262o-2                   (Apr.
                              (Jan.                         2004)          22                                                                                                                                       sec. 571          (Oct.                     30,
                               23,                                       U.S.C.                                                                                                                                      (Jan.             21,                    1994) 22
                              2004)                                      286nn                                                                                                                                        23,             1998)                    U.S.C.
                                                                         (Nov.                                                                                                                                       2004)                                      6302
                                                                          29,                                                                                                                                                                                  (Apr.
                                                                         1999)                                                                                                                                                                                  30,
                                                                           22                                                                                                                                                                                 1994) 22
                                                                         U.S.C.                                                                                                                                                                                U.S.C.
                                                                         262p-6                                                                                                                                                                                 6713
                                                                         (Nov.                                                                                                                                                                                 (Oct.
                                                                          29,                                                                                                                                                                                   21,
                                                                         1999)                                                                                                                                                                                 1998)

Broad policy objective                         Law                         
                                     22 U.S.C. 5605 (Dec. 4, 1991)            
     Religious freedom    22 U.S.C. 262d (Oct. 3, 1977) 22 U.S.C. 6445 (Oct.  
                                               27, 1998)                      
                          50 U.S.C. 1701 note (P.L. 103-160, sec. 1511 (Nov.  
           Serbia         30, 1993) & P.L. 104-208, sec. 540 (Feb. 12, 1996)) 
                                P.L. 108-199, sec. 572 (Jan. 23, 2004)        
                            22 U.S.C. 262d (Oct. 3, 1977) 22 U.S.C. 286e-11   
         Terrorism         (Oct. 10, 1978) 22 U.S.C. 262p-4q (Apr. 24, 1996)  
                                   22 U.S.C. 262p-4r (Oct. 26, 2001)          
           Tibet           22 U.S.C. 6901 note (P.L. 107-228, sec. 616 (Sep.  
                           30, 2002)) P.L. 108-199, sec. 558 (Jan. 23, 2004)  
                            22 U.S.C. 286k (July 31, 1945) 22 U.S.C. 286bb    
                          (Nov. 30, 1983) 22 U.S.C. 286cc (Nov. 30, 1983) 22  
           Trade           U.S.C. 286gg (Nov. 30, 1983) 22 U.S.C. 262k (Aug.  
                          15, 1985) 22 U.S.C. 262h (Oct. 15, 1986) 22 U.S.C.  
                           262n-3 (Oct. 21, 1998) 22 U.S.C. 262o-2 (Oct. 21,  
                             1998) P.L. 108-199, sec. 514 (Jan. 23, 2004)     
        Transparency        22 U.S.C. 286z (Nov. 30, 1983) 22 U.S.C. 286ll    
                           (Oct. 24, 1992) 22 U.S.C. 262o-2 (Oct. 21, 1998)   
    Use of IMF resources  22 U.S.C. 286u (Oct. 7, 1980) 22 U.S.C. 286ff (Nov. 
                               30, 1983) 22 U.S.C. 286oo (Nov. 6, 2000)       
       Women's issues       22 U.S.C. 2225 (Dec. 30, 1974) 22 U.S.C. 262k-2   
                                           (Sept. 30, 1996)                   
          Zimbabwe         P.L. 107-99, sec. 4 (Dec. 21, 2001) P.L. 108-199,  
                                       sec. 557 (Jan. 23, 2004)               

Source: GAO.

Notes:

The information shown in this enclosure is based on a GAO analysis of
policy and directed vote legislative mandates concerning the IMF.

Mandates shown in bold represent mandates that were enacted since our last
report in February 2003. Some of these mandates simply replace older
mandates that had expired, while other mandates cover new topics.

aTreasury puts mandates in three broad categories: "policy," "directed
vote," and "reporting". Policy mandates direct the United States to foster
or urge a certain policy at the IMF. Directed vote mandates instruct the
United States to "oppose" or "vote against" loans or other IMF assistance.
Reporting mandates are outside the scope of this report.

Enclosure III Comments from the Department of the Treasury

                                    (320275)

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