Foreign Assistance Act, Part IV - Enterprise for the Americas
Initiative
PART IV--ENTERPRISE FOR THE AMERICAS INITIATIVE
\1028\ SEC. 701.\1029\ PURPOSE. The purpose of this part
is to encourage and support improvement in the lives of the
people of Latin America and the Caribbean through market-oriented
reforms and economic growth with interrelated actions to promote
debt reduction, investment reforms, community based conservation,
and sustainable use of the environment, and child survival
and child development. The Facility will support these objectives
through administration of debt reduction operations under
this part for those countries with democratically elected
governments that meet investment reforms and other policy
conditions.
\1028\ Sec. 602(a) of the Jobs Through Exports Act of 1992
(Public Law 102-549; 106 Stat. 3664) added Part IV--Enterprise
for the Americas Initiative, secs. 701-710. Formerly, Part
IV, which related to amendments to other laws, was repealed
by sec. 401 of the FA Act of 1962. \1029\ 22 U.S.C. 2430.
SEC. 702.\1030\ DEFINITIONS. For purposes of this
part-
\1030\ 22 U.S.C. 2430a.
(1) the term ``administering body'' means the entity provided
for in section 708(c);
(2) the term ``Americas Framework Agreement'' means an Americas
Framework Agreement provided for in section 708;
(3) the term ``Americas Fund'' means an Enterprise for the
Americas Fund provided for in section 707(a);
(4) the term ``appropriate congressional committees'' means
the Committee on Foreign Affairs \1031\ and the Committee
on Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on Appropriations
of the Senate;
\1031\ Sec. 1(a)(5) of Public Law 104-14 (109 Stat. 186)
provided that references to the Committee on Foreign Affairs
of the House of Representatives shall be treated as referring
to the Committee on International Relations of the House of
Representatives.
(5) the term ``beneficiary country'' means an eligible country
with respect to which the authority of section 704(a)(1) is
exercised;
(6) the term ``eligible country'' means a country designated
by the President in accordance with section 703;
(7) the term ``Enterprise for the Americas Board'' or ``Board''
means the board established by section 610 of the Agricultural
Trade Development and Assistance Act of 1954; and
(8) the term ``Facility'' means the Enterprise for the Americas
Facility established in the Department of the Treasury by
section 601 of that Act.
SEC. 703.\1032\ ELIGIBILITY FOR BENEFITS.
(a) Requirements.--To be eligible for benefits from the Facility
under this part, a country must be a Latin American or Caribbean
country-
\1032\ 22 U.S.C. 2430b.
(1) whose government is democratically elected;
(2) whose government has not repeatedly provided support
for acts of international terrorism;
(3) whose government is not failing to cooperate on international
narcotics control matters;
(4) whose government (including its military or other security
forces) does not engage in a consistent pattern of gross violations
of internationally recognized human rights;
(5) that has in effect, has received approval for, or, as
appropriate in exceptional circumstances, is making significant
progress toward--
(A) an International Monetary Fund standby arrangement, extended
Fund arrangement, or an arrangement under the structural adjustment
facility or enhanced structural adjustment facility, or in
exceptional circumstances, a Fund monitored program or its
equivalent, unless the President determines (after consultation
with the Enterprise for the Americas Board) that such an arrangement
or program (or its equivalent) could reasonably be expected
to have significant adverse social or environmental effects;
and
(B) as appropriate, structural or sectoral adjustment loans
from the International Bank for Reconstruction and Development
or the International Development Association, unless the President
determines (after consultation with the Enterprise for the
Americas Board) that the resulting adjustment requirements
could reasonably be expected to have significant adverse social
or environmental effects;
(6) has put in place major investment reforms in conjunction
with an Inter-American Development Bank loan or otherwise
is implementing, or is making significant progress toward,
an open investment regime; and
(7) if appropriate, has agreed with its commercial bank lenders
on a satisfactory financing program, including, as appropriate,
debt or debt service reduction.
(b) Eligibility Determinations.--Consistent with subsection
(a), the President shall determine whether a country is eligible
to receive benefits under this part. The President shall notify
the appropriate congressional committees of his intention
to designate a country as an eligible country at least 15
days in advance of any formal determination.
SEC. 704.\1033\ REDUCTION OF CERTAIN DEBT.
(a) Authority To Reduce Debt.-
\1033\ 22 U.S.C. 2430c. Sec. 594(a) of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
1993 (Public Law 102-391; 106 Stat. 1692), enacted authorization
for debt reduction as chapter 12, sec. 499 of this Act. That
enactment, however, was repealed by sec. 602(b) of Public
Law 102-549 (106 Stat. 3669), which also provided: ``Any
exercise
of the authorities provided in that chapter prior to its
repeal by this subsection shall be deemed to be an exercise
of the
authorities of part IV of the Foreign Assistance Act of 1961
(as enacted by subsection (a) of this section) and shall
be
carried out, after the enactment of this section, in accordance
with that part.''.
(1) Authority.--The President may reduce the amount owed
to the United States (or any agency of the United States)
that is outstanding as of January 1, 1992, as a result of
concessional loans made to an eligible country by the United
States under part I of this Act, chapter 4 of part II of this
Act, or predecessor foreign economic assistance legislation.
(2) Appropriations requirement.--The authority provided by
this section may be exercised only in such amounts or to such
extent as is provided in advance by appropriations Acts.
(3) Certain prohibitions inapplicable.--
(A) A reduction of debt pursuant to this section shall not
be considered assistance for purposes of any provision of
law limiting assistance to a country.
(B) The authority of this section may be exercised notwithstanding
section 620(r) of this Act or section 321 of the International
Development and Food Assistance Act of 1975.
(b) Implementation of Debt Reduction.--
(1) In general.--Any debt reduction pursuant to subsection
(a) shall be accomplished at the direction of the Facility
by the exchange of a new obligation for obligations outstanding
as of the date specified in subsection (a)(1).
(2) Exchange of obligations.--The Facility shall notify the
agency primarily responsible for administering part I of this
Act of the agreement with an eligible country to exchange
a new obligation for outstanding obligations pursuant to this
subsection. At the direction of the Facility, the old obligations
shall be canceled and a new debt obligation for the country
shall be established, and the agency primarily responsible
for administering part I of this Act shall make an adjustment
in its accounts to reflect the debt reduction.
SEC. 705.\1034\ REPAYMENT OF PRINCIPAL.
(a) Currency of Payment.--The principal amount of each new
obligation issued pursuant to section 704(b) shall be repaid
in United States dollars.
\1034\ 22 U.S.C. 2430d.
(b) Deposit of Payments.--Principal repayments of new obligations
shall be deposited in the United States Government account
established for principal repayments of the obligations for
which those obligations were exchanged.
SEC. 706.\1035\ INTEREST ON NEW OBLIGATIONS.
(a) Rate of Interest.--New obligations issued by a beneficiary
country pursuant to section 704(b) shall bear interest at
a concessional rate.
\1035\ 22 U.S.C. 2430e.
(b) Currency of Payment; Deposits.--
(1) Local currency.--If the beneficiary country has entered
into an Americas Framework Agreement, interest shall be paid
in the local currency of the beneficiary country and deposited
in an Americas Fund. Such interest shall be the property of
the beneficiary country, until such time as it is disbursed
pursuant to section 707(d). Such local currencies shall be
used for the purposes specified in the Americas Framework
Agreement.
(2) United states dollars.--If the beneficiary country has
not entered into an Americas Framework Agreement, interest
shall be paid in United States dollars and deposited in the
United States Government account established for interest
payments of the obligations for which the new obligations
were exchanged.
(c) Interest Already Paid.--If a beneficiary country enters
into an Americas Framework Agreement subsequent to the date
on which interest first became due on the newly issued obligation,
any interest already paid on such new obligation shall not
be redeposited into the Americas Fund established for that
country.
SEC. 707.\1036\ ENTERPRISE FOR THE AMERICAS FUNDS.
(a) Establishment.--Each beneficiary country that enters
into an Americas Framework Agreement shall be required to
establish an Enterprise for the Americas Fund to receive payments
in local currency pursuant to section 706(b)(1).
\1036\ 22 U.S.C. 2430f. Title IV of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
1998 (Public Law 105-118; 111 Stat. 2404), provided the following:
``contribution to the enterprise for the americas multilateral
investment fund ``For payment to the Enterprise for the Americas
Multilateral Investment Fund by the Secretary of the Treasury,
for the United States contribution to the Fund to be administered
by the Inter-American Development Bank, $30,000,000 to remain
available until expended, which shall be available for contributions
previously due.''.
(b) Deposits.--Local currencies deposited in an Americas
Fund shall not be considered assistance for purposes of any
provision of law limiting assistance to a country.
(c) Investment.--Deposits made in an Americas Fund shall
be invested until disbursed. Any return on such investment
may be retained by the Americas Fund, without deposit in
the
Treasury of the United States and without further appropriation
by the Congress.
(d) Disbursements.--Funds in an Americas
Fund shall be disbursed
only pursuant to an Americas Framework Agreement.
SEC. 708.\1037\ AMERICAS FRAMEWORK AGREEMENTS.
(a) Authority.--The Secretary of State is authorized, in
consultation with other appropriate Government officials,
to enter into an Americas Framework Agreement with any eligible
country concerning the operation and use of the Americas Fund
for that country. In the negotiation of such Agreements, the
Secretary shall consult with the Enterprise for the Americas
Board in accordance with section 709.
\1037\ 22 U.S.C. 2430g.
(b) Contents of Agreements.--An Americas Framework Agreement
with an eligible country shall--
(1) require that country to establish an Americas Fund;
(2) require that country to make interest payments under
section 706(b)(1) into an Americas Fund;
(3) require that country to make prompt disbursements from
the Americas Fund to the administering body described in subsection
(c);
(4) when appropriate, seek to maintain the value of the local
currency resources of the Americas Fund in terms of United
States dollars;
(5) specify, in accordance with subsection (d), the purposes
for which amounts in an Americas Fund may be used; and
(6) contain reasonable provisions for the enforcement of
the terms of the agreement.
(c) Administering Body.--
(1) In general.--Funds disbursed from the Americas Fund in
each beneficiary country shall be administered by a body constituted
under the laws of that country.
(2) Composition.--The administering body shall consist of--
(A) one or more individuals appointed by the United States
Government,
(B) one or more individuals appointed by the government of
the beneficiary country, and
(C) individuals who represent a broad range of--
(i) environmental nongovernmental organizations of the beneficiary
country,
(ii) child survival and child development nongovernmental
organizations of the beneficiary country,
(iii) local community development nongovernmental organizations
of the beneficiary country, and
(iv) scientific or academic organizations or institutions
of the beneficiary country. A majority of the members of the
administering body shall be individuals described in subparagraph
(C).
(3) Responsibilities.--The administering body--
(A) shall receive proposals for grant assistance from eligible
grant recipients (as determined under subsection (e)) and
make grants to eligible grant recipients in accordance with
the priorities agreed upon in the Americas Framework Agreement,
consistent with subsection (d);
(B) shall be responsible for the management of the program
and oversight of grant activities funded from resources of
the Americas Fund;
(C) shall be subject, on an annual basis, to an audit of
financial statements conducted in accordance with generally
accepted auditing standards by an independent auditor;
(D) shall be required to grant to representatives of the
United States General Accounting Office such access to books
and records associated with operations of the Americas Fund
as the Comptroller General of the United States may request;
(E) shall present an annual program for review each year
by the Enterprise for the Americas Board; and
(F) shall submit a report each year on the activities that
it undertook during the previous year to the Chair of the
Enterprise for the Americas Board and to the government of
the beneficiary country.
(d) Eligible Activities.--Grants from an Americas Fund shall
be used for--
(1) activities that link the conservation and sustainable
use of natural resources with local community development;
and
(2) child survival and other child development activities.
(e) Grant Recipients.--Grants made from an Americas Fund
shall be made to--
(1) nongovernmental environmental, conservation, child survival
and child development, development, and indigenous peoples
organizations of the beneficiary country;
(2) other appropriate local or regional entities; and
(3) in exceptional circumstances, the government of the beneficiary
country.
(f) Review of Larger Grants.--Any grant of more than $100,000
from an Americas Fund shall be subject to veto by the Government
of the United States or the government of the beneficiary
country.
(g) Eligibility Criteria.--In the event that a country ceases
to meet the eligibility requirements set forth in section
703(a), as determined by the President pursuant to section
703(b), then grants from the Americas Fund for that country
may only be made to nongovernmental organizations until such
time as the President determines that such country meets the
eligibility requirements set forth in section 703(a).
SEC. 709.\1038\ ENTERPRISE FOR THE AMERICAS BOARD.
For purposes of this part, the Enterprise for the Americas
Board shall-
\1038\ 22 U.S.C. 2430h.
(1) advise the Secretary of State on the negotiations of
Americas Framework Agreements;
(2) ensure, in consultation with--
(A) the government of the beneficiary country,
(B) nongovernmental organizations of the beneficiary country,
(C) nongovernmental organizations of the region (if appropriate),
(D) environmental, scientific, child survival and child development,
and academic leaders of the beneficiary country, and
(E) environmental, scientific, child survival and child development,
and academic leaders of the region (as appropriate), that
a suitable administering body is identified for each Americas
Fund; and
(3) review the programs, operations, and fiscal audits of
each administering body.
SEC. 710.\1039\ ANNUAL REPORTS TO THE CONGRESS. The annual
reports submitted pursuant to section 614 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1738mm)
shall include a description of each Americas Framework Agreement
and a description of any grants that have been extended by
administering bodies pursuant to an Americas Framework Agreement.
\1039\ 22 U.S.C. 2430i. \1040\ Part V, which related to Indochina
Postwar Reconstruction, was repealed by sec. 413 of the International
Security Assistance and Arms Export Control Act of 1976 (Public
Law 94-329; 90 Stat. 761). For complete text of regulations
governing determinations, authorizations, etc., and remaining
funds under part V, see page 550. \1041\ Part VI, which related
to assistance to the Middle East and had been added by the
FA Act of 1974, was repealed by sec. 12(b)(4) of the International
Security Assistance Act of 1978 (Public Law 95-384; 92 Stat.
737).
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