Public Law 99–472

SECTION 1. SHORT TITLE.

This Act may be cited as the “Export-Import Bank Act Amendments of 1986”.

SEC. 2. FEES.

Section 2(a)(1) of the Export-Import Bank Act of 1945 is amended by inserting after the fifth sentence thereof the following: “The Bank may impose and collect reasonable fees to cover the costs of conferences and seminars sponsored by, and publications provided by, the Bank. Amounts received under the preceding sentence shall be credited to the fund which initially paid for such activities.”.

SEC. 3. CREDIT APPLICATION FEES.

Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)) is amended by inserting after the third sentence the following: “The Bank may not impose a credit application fee unless (i) the fee is competitive with the average fee charged by the Bank’s primary foreign competitors, and (ii) the borrower or the exporter is given the option of paying the fee at the outset of the loan or over the life of the loan and the present value of the fee determined under either such option is the same amount.”.

SEC. 4. ENHANCEMENT OF MEDIUM-TERM PROGRAM.

Section 2(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(a)) is amended by adding at the end thereof the following new paragraph:

“(3)“(3)

Enhancement of Medium-Term Program.—

“(A)“(A)

In general.—

To enhance the medium-term financing program established pursuant to paragraph (2), the Bank shall establish measures to—

“(i)“(i)

improve the competitiveness of the Bank’s medium-term financing and ensure that its medium-term financing is fully competitive with that of other major official export credit agencies;

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“(ii)“(ii)

ease the administrative burdens and procedural and documentary requirements imposed on the users of medium-term financing;

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“(iii)“(iii)

attract the widest possible participation of private financial institutions and other sources of private capital in the medium-term financing of United States exports; and

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“(iv)“(iv)

render the Bank’s medium-term financing as supportive of United States exports as is its Direct Loan Program.

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“(B)“(B)

Report required.—

Not later than April 15, 1988, the Bank shall transmit a report to the Congress analyzing the measures adopted to enhance medium-term financing.”.

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SEC. 5. COMPETITIVENESS MANDATE.

The second sentence of section 2(b)(1)(B) of the Export-Import Bank Act of 1945 is amended by striking out “equivalent” and inserting in lieu thereof “identical in all respects”.

SEC. 6. MULTIPLE-EXPORTER RISK PROTECTION.

Section 2(b)(1)(E) of the Export-Import Bank Act of 1945 is

12 USC 685.

amended by adding at the end thereof the following new clause:

“(ix)“(ix)

The Bank shall provide, through creditworthy trade associations, export trading companies, State export finance companies, export finance cooperatives, and other multiple-exporter organizations, medium-term risk protection coverage for the members and clients of such organizations. Such coverage shall be made available to each such organization under a single risk protection policy covering its members or clients. Nothing in this provision shall be interpreted as limiting the Bank’s authority to deny support for specific transactions or to disapprove a request by such an organization to participate in such coverage.”.

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SEC. 7. PROGRAM ACCESS.

Section 2(b)(1) of the Export-Import Bank Act of 1945 is amended by adding at the end thereof the following new subparagraph:

“(G)“(G)

Participation in or access to long-, medium-, and short-term

Insurance.

financing, guarantees, and insurance provided by the Bank shall not be denied solely because the entity seeking participation or access is not a bank or is not a United States person.”.

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SEC. 8. PROHIBITION ON AID TO MARXISTLENINIST COUNTRIES.

Section 2(b)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(2)) is amended to read as follows:

“(2)“(2)

Prohibition on Aid to Marxist-Leninist Countries.—

“(A)“(A)

In general.—

The Bank in the exercise of its functions shall not guarantee, insure, extend credit, or participate in the extension of credit—

“(i)“(i)

in connection with the purchase or lease of any product by a Marxist-Leninist country, or agency or national thereof; or

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“(ii)“(ii)

in connection with the purchase or lease of any product by any other foreign country, or agency or national thereof, if the product to be purchased or leased by such other country, agency, or national is, to the knowledge of the Bank, principally for use in, or sale or lease to, a Marxist-Leninist country.

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“(B)“(B)

Marxistleninist country defined.—

“(i)“(i)

In general.—

For the purposes of this paragraph, the term ‘Marxist-Leninist country’ means any country which—

“(I)“(I)

maintains a centrally planned economy based on the principles of Marxist-Leninism, or

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“(II)“(II)

is economically and militarily dependent on the Union of Soviet Socialist Republics or on any other Marxist-Leninist country.

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“(ii)“(ii)

Specific countries deemed to be marxistleninist.—

Unless otherwise determined by the President in the manner provided in subparagraph (C), the following countries are deemed to be Marxist-Leninist countries for purposes of this paragraph: “Cambodian People’s Republic. “Cooperative Republic of Guyana. “Czechoslovak Socialist Republic. “Democratic People’s Republic of Korea. “Democratic Republic of Afghanistan. “Estonia. “German Democratic Republic. “Hungarian People’s Republic. “Lao People’s Democratic Republic. “Latvia. “Lithuania. “Mongolian People’s Republic. “People’s Democratic Republic of Yemen. “People’s Republic of Albania. “People’s Republic of Angola. “People’s Republic of Benin. “People’s Republic of Bulgaria. “People’s Republic of China. “People’s Republic of the Congo. “People’s Republic of Mozambique. “Polish People’s Republic. “Republic of Cuba. “Republic of Nicaragua. “Socialist Ethiopia. “Socialist Federal Republic of Yugoslavia. “Socialist Republic of Romania. “Socialist Republic of Vietnam. “Surinam. “Tibet. “Union of Soviet Socialist Republics (including its captive constituent republics).

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“(C)“(C)

Presidential determination that a country has ceased to be Marxist-Leninist.—

If the President determines that any country on the list contained in subparagraph (B)(ii) has ceased to be a Marxist-Leninist country (within the definition of such term in subparagraph (B)(i)), such country shall not be treated as a Marxist-Leninist country for purposes of this paragraph after the date of such determination, unless the President subsequently determines that such country has again become a Marxist-Leninist country.”.

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“(D)“(D)

Presidential determination relating to financing in the national interest.—

“(i)“(i)

In general.—

Subparagraph (A) shall not apply to guarantees, insurance, or extensions of credit by the Bank to a country, agency, or national described in clause (i) or (ii) of subparagraph (A) (in connection with transactions described in such clauses) if the President determines that such guarantees, insurance, or extensions of credit are in the national interest.

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“(ii)“(ii)

Separate determination for certain transactions.—

The President shall make a separate determination under clause (i) for each transaction described in clause (i) or (ii) of subparagraph (A) for which the Bank would extend a loan in an amount equal to or greater than $50,000,000.

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“(iii)“(iii)

Report of clause (i) determinations to congress.—

Any determination by the President under clause (i) shall be reported to the Congress not later than the earlier of—

“(I)“(I)

the end of the 30-day period beginning on the date of such determination; or

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“(II)“(II)

the date the Bank takes final action with respect to the first transaction involving the country, agency, or national for which such determination is made after the date of the enactment of the Export-Import Bank Amendments of 1974, unless a report of a determination

12 USC 635 note.

with respect to such country, agency, or national was made and reported before such date of enactment.

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“(iv)“(iv)

Report of clause (ii) determinations to congress.—

Any determination by the President under clause (ii) shall be reported to the Congress not later than the earlier of—

“(I)“(I)

the end of the 30-day period beginning on the date of such determination; or

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“(II)“(II)

the date the Bank takes final action with respect to the transaction for which such determination is made.”.

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SEC. 9. PROHIBITION ON AID TO ANGOLA.

Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) is amended by adding at the end thereof the following new paragraph:

“(11)“(11)

Prohibition Relating to Angola.—

Notwithstanding any

Agriculture and agricultural commodities.

determination by the President under paragraph (2), the Bank may not guarantee, insure, or extend credit (or participate in the extension of credit) in connection with any export of goods or services, except food or agricultural commodities, to the People’s Republic of Angola until the President certifies to the Congress that no combatant forces or military advisors of the Republic of Cuba or of any other Marxist-Leninist country (as such term is defined in paragraph (2)(B)) remain in Angola.”.

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SEC. 10. TRANSFERABILITY OF GUARANTEES.

Section 2(c) of the Export-Import Bank Act of 1945 is amended by adding at the end thereof the following new paragraph:

“(3)“(3)

Transferability of Guarantees.—

With respect to medium-term and long-term obligations insured or guaranteed by the Bank after the date of the enactment of the Export-Import Bank Act Amendments of 1986, the Bank shall authorize the unrestricted transfer of such obligations by the originating lenders or their transferees to other lenders without affecting, limiting, or terminating the guarantee or insurance provided by the Bank.”.

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SEC. 11. PROHIBITION AGAINST CERTAIN TRANSACTIONS.

Section 2 of the Export-Import Bank Act of 1945 is amended by adding at the end thereof the following:

“(e)“(e)

Limitation on Assistance Which Adversely Affect the United States.—

“(1)“(1)

In general.—

The Bank may not extend any direct credit or financial guarantee for establishing or expanding production of any commodity for export by any country other than the United States, if—

“(A)“(A)

the Bank determines that—

“(i)“(i)

the commodity is likely to be in surplus on world markets at the time the resulting productive capacity is expected to become operative; or

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“(ii)“(ii)

the resulting production capacity is expected to compete with United States production of the same, similar, or competing commodity; and

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“(B)“(B)

the Bank determines that the extension of such credit or guarantee will cause substantial injury to United States producers of the same, similar, or competing commodity.

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“(2)“(2)

Exception.—

Paragraph (1) shall not apply in any case where, in the judgment of the Board of Directors of the Bank, the short- and long-term benefits to industry and employment in the United States are likely to outweigh the injury to United States producers of the same, similar, or competing commodity.”.

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SEC. 12. IMPACT ANALYSIS.

Section 1911 of the Export-Import Bank Act Amendments of 1978 is amended by adding at the end thereof the following: “In all cases to which this section applies, the Bank shall consider and address in writing the views of parties or persons who may be substantially adversely affected by the loan or guarantee prior to taking final action on the loan or guarantee. This requirement does not subject

5 USC 5311.

the Bank to the provisions of subchapter II of chapter 5 of title 5, United States Code.”.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

Section 7(a) of the Export-Import Bank Act of 1945 is amended by adding at the end thereof the following new paragraph:

“(3)“(3)

Authorization of Appropriation.—

There are authorized to be appropriated $145,259,000 for fiscal year 1987 to cover the subsidy cost of new direct loans obligated by the Bank in that fiscal year. Any amounts appropriated under this paragraph shall be permanent additions to the capital and reserves of the Bank.”.

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SEC. 14. EXTENSION OF CHARTER.

Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended by striking out “September 30, 1986” and inserting in lieu thereof “September 30, 1992”.

SEC. 15. MATCHING FOREIGN OFFICIAL EXPORT CREDITS IN THE UNITED STATES.

SEC. 16. REPORT ON ROLE OF PRIVATE INSURANCE.

Not later than October 1, 1987, the Export-Import Bank of the United States and the Office of Management and Budget shall jointly prepare and transmit to the Congress, and the General Accounting Office shall prepare and transmit to the Congress, reports analyzing—

SEC. 17. CONFORMING AMENDMENT RELATING TO CREDIT AUTHORITY.

The second sentence of section 7(a) of the Export-Import Bank Act

Ante, p. 1204.

of 1945 is amended by inserting “and credit” immediately after the words “All spending”.

SEC. 18. DIRECTORS’ TERMS.

Section 3(c)(8) of the Export-Import Bank Act of 1945 (12 U.S.C. 635a(c)(8)) is amended by adding at the end thereof the following new subparagraph:

“(E)“(E)

Any director whose term has expired may continue to serve on the Board of Directors until the earlier of—

“(i)“(i)

the date on which such director’s successor is qualified; or

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“(ii)“(ii)

the end of the 6-month period beginning on the date such director’s term expires.”.

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SEC. 19. TIED AID CREDIT WAR CHEST.

The Export-Import Bank Act of 1945 is amended by adding at the end thereof the following new section:

“SEC. 15. TIED AID CREDIT PROGRAM AND FUND.

“(a)“(a)

Findings.—

The Congress finds that—

“(1)“(1)

tied aid and partially untied aid credits offered by other countries are a predacious method of financing exports because of their market-distorting effects;

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“(2)“(2)

these distortions have caused the United States to lose export sales, with resulting losses in economic growth and employment;

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“(3)“(3)

these practices undermine market mechanisms that would otherwise result in export purchase decisions made on the basis of price, quality, delivery, and other factors directly related to the export, where official financing is not subsidized and would be a neutral factor in the transaction;

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“(4)“(4)

support of commercial exports by donor countries with tied aid and partially untied aid credits impedes the growth of developing countries because it diverts development assistance funds from essential developmental purposes; and

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“(5)“(5)

there should be established in the Bank a temporary tied aid program to target the export markets of those countries which make extensive use of tied aid or partially untied aid credits for commercial advantage for the purpose of facilitating the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes, and such program should be aggressively used until such an arrangement is established.

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“(b)“(b)

Establishment of Tied Aid Credit Program.—

“(1)“(1)

In general.—

For the purpose of facilitating the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes, the Bank shall establish a tied aid credit program under which grants shall be made from funds available in the Tied Aid Credit Fund established under subsection (c)—

“(A)“(A)

to supplement the financing of a United States export when there is a reasonable expectation that predacious financing will be provided by another country for a sale by a competitor of the United States exporter with respect to such export;

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“(B)“(B)

to supplement the financing of United States exports to foreign markets which are actual or potential export markets for any country which the Bank determines—

“(i)“(i)

engages in predacious official export financing through the use of tied aid or partially untied aid credits; and

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“(ii)“(ii)

impedes negotiations to eliminate the use of such credits for commercial purposes; or

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“(C)“(C)

to supplement the financing of United States exports under such other circumstances as the Bank may determine to be appropriate for carrying out the purposes of this section.

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“(2)“(2)

Administration of program.—

The tied aid credit program shall be administered by the Bank—

“(A)“(A)

in consultation with the Secretary of the Treasury and in accordance with the Secretary’s recommendations on how such credits could be used most effectively and efficiently to promote the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes;

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“(B)“(B)

in cooperation with private financial institutions or entities, as appropriate; and

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“(C)“(C)

in consultation with the National Advisory Council on International Monetary and Financial Policies.

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“(3)“(3)

Coordination with other export financing.—

Under the tied aid credit program, the Bank may combine grants from the Tied Aid Credit Fund with—

“(A)“(A)

any guarantee, insurance, or other extension of credit provided by the Bank under this Act;

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“(B)“(B)

any export financing provided by any private financial institution or other entity; and

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“(C)“(C)

any other type of export financing, in such manner and under such terms as the Bank determines to be appropriate, including combinations of export financing in the form of blended financing and parallel financing.

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“(4)“(4)

Information on countries which engage in official predacious export financing and impede negotiations.—

In order to assist the Bank to make the most efficient use of funds available for supplemental financing under paragraph (1)(B), the United States Trade Representative and the Secretary of Commerce may provide information on principal sectors and key markets of countries described in paragraph (1)(B) to the Bank, the Secretary, and the National Advisory Council on International Monetary and Financial Policies.

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“(c)“(c)

Tied Aid Credit Fund.—

“(1)“(1)

In general.—

There is hereby established within the Bank a fund to be known as the ‘Tied Aid Credit Fund’ (hereinafter in this section referred to as the ‘Fund’), consisting of such amounts as may be appropriated to the Fund pursuant to the authorization contained in subsection (e).

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“(2)“(2)

Expenditures from fund.—

Amounts in the Fund shall be available for grants made by the Bank under the tied aid credit program established pursuant to subsection (b) and to reimburse the Bank for the cost of any tied aid credits authorized by the Bank during fiscal year 1986.

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“(d)“(d)

Consistency With Arrangement.—

Any export financing involving the use of a grant under the tied aid credit program shall be consistent with the procedures established by the Arrangement, as in effect at the time such financing is approved.

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“(e)“(e)

Authorization of Appropriations.—

“(1)“(1)

In general.—

There is hereby authorized to be appropriated to the Fund for fiscal years 1987 and 1988, $300,000,000. Except as provided in paragraph (2), such sums shall remain available until expended.

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“(2)“(2)

Rescission authority.—

“(A)“(A)

Determination by president.—

If the President determines that any amount appropriated to the Fund is not required to achieve the purpose of the Fund, the President shall transmit a special message of such determination to the Congress in the manner provided in section 1012(a) of the Impoundment Control Act of 1974.

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“(B)“(B)

Special message.—

Any message under this paragraph shall be treated as a special message under such section for purposes of such Act.

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“(f)“(f)

Nonreviewability.—

No action taken under this section shall be reviewable by any court, except for abuse of discretion.

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“(g)“(g)

Report to Congress.—

“(1)“(1)

Report required—

Before the end of the 6-month period beginning on the date of enactment of this section and every six months thereafter, the Bank, in consultation with the Secretary, shall prepare and transmit a report on tied aid credits to the President of the Senate and the Speaker of the House of Representatives.

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“(2)“(2)

Contents of report.—

Each report required by paragraph (1) shall contain a description of—

“(A)“(A)

the principal offers of predacious financing by foreign countries during the course of the previous 6 months;

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“(B)“(B)

steps taken by the United States to combat specific predacious financing practices of foreign countries;

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“(C)“(C)

any use by the Bank of the Tied Aid Credit Fund to match specific predacious financing practices of foreign countries and to initiate tied aid credit offers;

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“(D)“(D)

any additional steps the United States may take in the future to discourage use of predacious financing practices; and

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“(E)“(E)

any progress achieved in negotiations to establish a comprehensive international arrangement restricting the use of tied aid and partially untied credits for commercial purposes.

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“(3)“(3)

Confidential information.—

To the extent the Bank determines any information required to be included in the report under this subsection should not be made public, such information may be submitted separately on a confidential basis or provided orally, rather than in written form, to the Chairmen and ranking minority Members of the Committees of the Senate and the House of Representatives with jurisdiction over the subject matter of the report.

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“(h)“(h)

Definitions.—

For the purpose of this section—

“(1)“(1)

Tied aid and partially untied aid credit.—

The terms ‘tied aid credit’ and ‘partially untied aid credit’ mean any credit which—

“(A)“(A)

has a grant element greater than zero percent, as determined by the Development Assistance Committee of the Organization for Economic Cooperation and Development;

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“(B)“(B)

is, in fact or in effect, tied to—

“(i)“(i)

the procurement of goods or services from the donor country, in the case of tied aid credit; or

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“(ii)“(ii)

the procurement of goods or services from a restricted number of countries, in the case of partially untied aid credit; and

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“(C)“(C)

is financed either exclusively from public funds or partly from public and partly from private funds.

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“(2)“(2)

Secretary.—

The term ‘Secretary’ means the Secretary of the Treasury.

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“(3)“(3)

Arrangement.—

The term ‘Arrangement’ means the Arrangement on Guidelines for Officially Supported Export Credits established through the Organization for Economic Cooperation and Development.

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“(4)“(4)

Blended financing.—

The term ‘blended financing’ means financing provided through any combination of official development assistance, official export credits, and private commercial credit which is integrated into a single agreement with a single set of financial terms.

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“(5)“(5)

Parallel financing.—

The term ‘parallel financing’ means financing provided by any combination of official development assistance, official export credits, and private commercial credit which is not integrated into a single agreement and does not have a single set of financial terms.”.

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SEC. 20. INTEREST SUBSIDY PAYMENTS.

SEC. 21. POLICY TOWARD UNITED STATES BUSINESS TRANSACTIONS IN ANGOLA.

SEC. 22. OPPOSITION OF MULTILATERAL ASSISTANCE FOR FOREIGN SURPLUS COMMODITIES AND MINERALS.

The Secretary of the Treasury shall instruct the United States Executive Directors of the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the Asian Development Bank, the Inter-American Investment Corporation, the African Development Bank, and the African Development Fund to use the voice and vote of the United States to oppose any assistance by such institutions, using funds appropriated or otherwise made available pursuant to any provision of law, for the production or extraction of any commodity or mineral for export, if—