Public Law 92–246

That the Inter-American

Inter-American Development Bank.

Fund for Special Operations.

U.S. contribution.

73 Stat. 299; 84 Stat. 1658.

Development Bank Act (22 U.S.C. 283 et seq.) is amended by adding at the end thereof the following new sections:

“Sec. 19.

(a)(a)

The United States Governor of the Bank is authorized to pay to the Fund for Special Operations two annual installments of $450,000,000 each in accordance with and subject to the terms and conditions of the resolution adopted by the Board of Governors on December 31, 1970, concerning an increase in the resources of the Fund for Special Operations and contributions thereto.

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“(b)“(b)

There are hereby authorized to be appropriated, without fiscal

Appropriation.

year limitation, the amounts necessary for payment by the Secretary of the Treasury of the two annual installments of $450,000,000 each for the United States share of the increase in the resources of the Fund for Special Operations of the Bank.

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“Sec. 20.

The United States Governor of the Bank is authorized to agree to amendments to the provisions of the articles of agreement as provided in proposed Board of Governors resolutions entitled (a) ‘Amendment of the Provisions of the Agreement Establishing the Bank with Respect to Membership and to Related Matters’ and (b) ‘Amendment of the Provisions of the Agreement Establishing the Bank with Respect to the Election of Executive Directors’.

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“Sec. 21.

The President shall instruct the United States Executive

Expropriation of U.S. property, loan restriction.

Director of the Bank to vote against any loan of other utilization of the funds of the Bank for the benefit of any country which has—

“(1)“(1)

nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum of which is beneficially owned by United States citizens;

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“(2)“(2)

taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum of which is beneficially owned by United States citizens; or

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“(3)“(3)

imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned;

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unless the President determines that (A) an arrangement for prompt, adequate, and effective compensation has been made, (B) the parties have submitted the dispute to arbitration under the rules of the Convention

17 UST 1270.

for the Settlement of Investment Disputes, or (C) good faith negotiations are in progress aimed at providing prompt, adequate, and effective compensation under the applicable principles of international law.”

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Sec. 2.

The Inter-American Development Bank Act is amended by adding at the end thereof the following new section:

“Sec. 22.

The Secretary of the Treasury shall instruct the United States Executive Director of the Bank to vote against any loan or other utilization of the funds of the Bank for the benefit of any country with respect to which the President has made a determination, and so notified the Secretary of the Treasury, that the government of such country has failed to take adequate steps to prevent narcotic drugs and other controlled substances (as defined by the Comprehensive

84 Stat. 1236.

21 USC 801 note.

Drug Abuse Prevention and Control Act of 1970) produced or processed, in whole or in part, in such country, or transported through such country, from being sold illegally within the jurisdiction of such country to United States Government personnel or their dependents, or from entering the United States unlawfully. Such instruction shall continue in effect until the President determines, and so notifies the Secretary of the Treasury, that the government of such country has taken adequate steps to prevent such sale or entry of narcotic drugs and other controlled substances.”

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