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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-392
_______________________________________________________________________


 
        EXPORT-IMPORT BANK OF THE UNITED STATES REAUTHORIZATION

                                _______
                                

                November 7, 1997.--Ordered to be printed

_______________________________________________________________________


 Mr. Leach , from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 1026]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the House to the bill (S. 
1026), to reauthorize the Export-Import Bank of the United 
States, having met, after full and free conference, have agreed 
to recommend and do recommend to their respective Houses as 
follows:
      That the Senate recede from its disagreement to the 
amendment of the House and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
House amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export-
Import Bank Reauthorization Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Tied aid credit fund authority.
Sec. 4. Extension of authority to provide financing for the export of 
          nonlethal defense articles or services the primary end use of 
          which will be for civilian purposes.
Sec. 5. Clarification of procedures for denying credit based on the 
          national interest.
Sec. 6. Administrative Counsel.
Sec. 7. Advisory Committee for sub-Saharan Africa.
Sec. 8. Increase in labor representation on the Advisory Committee of 
          the Export-Import Bank.
Sec. 9. Outreach to companies.
Sec. 10. Clarification of the objectives of the Export-Import Bank.
Sec. 11. Including child labor as a criterion for denying credit based 
          on the national interest.
Sec. 12. Prohibition relating to Russian transfers of certain missiles 
          to the People's Republic of China.

SEC. 2. EXTENSION OF AUTHORITY.

    (a) In General.--Section 7 of the Export-Import Bank Act of 
1945 (12 U.S.C. 635f) is amended by striking ``until'' and all 
that follows through the end period and inserting ``until the 
close of business on September 30, 2001.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on September 30, 1997.

SEC. 3. TIED AID CREDIT FUND AUTHORITY.

    (a) Expenditures From Fund.--Section 10(c)(2) of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635i-3(c)(2)) is 
amended by striking ``through'' and all that follows through 
``1997''.
    (b) Authorization.--Section 10(e) of such Act (12 U.S.C. 
635i-3(e)) is amended by striking the first sentence and 
inserting the following: ``There are authorized to be 
appropriated to the Fund such sums as may be necessary to carry 
out the purposes of this section.''.

SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF 
                    NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY 
                    END USE OF WHICH WILL BE FOR CIVILIAN PURPOSES.

    Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 
Stat. 4376) is amended by striking ``1997'' and inserting 
``2001''.

SEC. 5. CLARIFICATION OF PROCEDURES FOR DENYING CREDIT BASED ON THE 
                    NATIONAL INTEREST.

    Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)(1)(B)) is amended--
            (1) in the last sentence, by inserting ``, after 
        consultation with the Committee on Banking and 
        Financial Services of the House of Representatives and 
        the Committee on Banking, Housing, and Urban Affairs of 
        the Senate,'' after ``President''; and
            (2) by adding at the end the following: ``Each such 
        determination shall be delivered in writing to the 
        President of the Bank, shall state that the 
        determination is made pursuant to this section, and 
        shall specify the applications or categories of 
        applications for credit which should be denied by the 
        Bank in furtherance of the national interest.''.

SEC. 6. ADMINISTRATIVE COUNSEL.

    Section 3(e) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a(e)) is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) The General Counsel of the Bank shall ensure that the 
directors, officers, and employees of the Bank have available 
appropriate legal counsel for advice on, and oversight of, 
issues relating to personnel matters and other administrative 
law matters by designating an attorney to serve as Assistant 
General Counsel for Administration, whose duties, under the 
supervision of the General Counsel, shall be concerned solely 
or primarily with such issues.''.

SEC. 7. ADVISORY COMMITTEE FOR SUB-SAHARAN AFRICA.

    (a) In General.--Section 2(b) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635(b)) is amended by inserting after 
paragraph (8) the following:
    ``(9)(A) The Board of Directors of the Bank shall take 
prompt measures, consistent with the credit standards otherwise 
required by law, to promote the expansion of the Bank's 
financial commitments in sub-Saharan Africa under the loan, 
guarantee, and insurance programs of the Bank.
    ``(B)(i) The Board of Directors shall establish and use an 
advisory committee to advise the Board of Directors on the 
development and implementation of policies and programs 
designed to support the expansion described in subparagraph 
(A).
    ``(ii) The advisory committee shall make recommendations to 
the Board of Directors on how the Bank can facilitate greater 
support by United States commercial banks for trade with sub-
Saharan Africa.
    ``(iii) The advisory committee shall terminate 4 years 
after the date of enactment of this subparagraph.''.
    (b) Reports to Congress.--Within 6 months after the date of 
enactment of this Act, and annually for each of the 4 years 
thereafter, the Board of Directors of the Export-Import Bank of 
the United States shall submit to Congress a report on the 
steps that the Board has taken to implement section 2(b)(9)(B) 
of the Export-Import Bank Act of 1945 and any recommendations 
of the advisory committee established pursuant to such section.

SEC. 8. INCREASE IN LABOR REPRESENTATION ON THE ADVISORY COMMITTEE OF 
                    THE EXPORT-IMPORT BANK.

    Section 3(d)(2) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a(d)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
            ``(B) Not less than 2 members appointed to the 
        Advisory Committee shall be representative of the labor 
        community, except that no 2 representatives of the 
        labor community shall be selected from the same labor 
        union.''.

SEC. 9. OUTREACH TO COMPANIES.

    Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)(1)) is amended by adding at the end the 
following:
    ``(I) The President of the Bank shall undertake efforts to 
enhance the Bank's capacity to provide information about the 
Bank's programs to small and rural companies which have not 
previously participated in the Bank's programs. Not later than 
1 year after the date of enactment of this subparagraph, the 
President of the Bank shall submit to Congress a report on the 
activities undertaken pursuant to this subparagraph.''.

SEC. 10. CLARIFICATION OF THE OBJECTIVES OF THE EXPORT-IMPORT BANK.

    Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)(1)(A)) is amended in the first sentence by 
striking ``real income'' and all that follows to the end period 
and inserting: ``real income, a commitment to reinvestment and 
job creation, and the increased development of the productive 
resources of the United States''.

SEC. 11. INCLUDING CHILD LABOR AS A CRITERION FOR DENYING CREDIT BASED 
                    ON THE NATIONAL INTEREST.

    Section 2(b)(1)(B) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)(1)(B)), as amended by section 5, is amended 
in the next to the last sentence by inserting ``(including 
child labor)'' after ``human rights''.

SEC. 12. PROHIBITION RELATING TO RUSSIAN TRANSFERS OF CERTAIN MISSILES 
                    TO THE PEOPLE'S REPUBLIC OF CHINA.

    Section 2(b) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)) is amended by adding at the end the following:
            ``(12) Prohibition relating to russian transfers of 
        certain missile systems.--If the President of the 
        United States determines that the military or 
        Government of the Russian Federation has transferred or 
        delivered to the People's Republic of China an SS-N-22 
        missile system and that the transfer or delivery 
        represents a significant and imminent threat to the 
        security of the United States, the President of the 
        United States shall notify the Bank of the transfer or 
        delivery as soon as practicable. Upon receipt of the 
        notice and if so directed by the President of the 
        United States, the Board of Directors of the Bank shall 
        not give approval to guarantee, insure, extend credit, 
        or participate in the extension of credit in connection 
        with the purchase of any good or service by the 
        military or Government of the Russian Federation.''.
      And the House agree to the same.

                                   James A. Leach,
                                   Michael N. Castle,
                                   Douglas Bereuter,
                                   John J. LaFalce,
                                   Floyd H. Flake,
                                 Managers on the Part of the House.

                                   Alfonse D'Amato,
                                   Rod Grams,
                                   Chuck Hagel,
                                   Paul Sarbanes,
                                   Carol Moseley-Braun,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The Managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the House to the bill (S. 1026) to reauthorize 
the Export-Import Bank of the United States, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report.

               section 1--Short Title; Table of Contents

Present Law
      No provision.
Senate bill
      The Senate bill (sec. 1) titles this Act the ``Export-
Import Bank Reauthorization Act of 1997.''
House amendment
      No provision.
Conference agreement
      The conference agreement is the Senate provision.

                   section 2--extension of authority

Present law
      The charter of the Export-Import Bank of the United 
States (Eximbank), which expired on September 30, 1997, was 
extended by continuing resolutions through November 7, 1997.
Senate bill
      The Senate bill (sec. 2) extends the charter of Eximbank 
for four years through September 30, 2001.
House amendment
      The House amendment (sec. 1) has an identical provision.
Conference agreement
      The conference agreement extends the Eximbank's charter 
through September 30, 2001.

               section 3--tied aid credit fund authority

Present law
      Eximbank's authority to use the Tied Aid Credit Fund 
pursuant to section 10 of the Export-Import Bank Act of 1945 
(Eximbank Act) expired on September 30, 1997.
Senate bill
      The Senate bill (sec. 3) extends Eximbank's authority to 
use the Tied Aid Credit Fund for four years through September 
30, 2001.
House amendment
      The House amendment (sec. 2) has a similar provision 
extending Eximbank's authority to use the Tied Aid Credit Fund 
through September 30, 2001.
Conference agreement
      The conference agreement extends Eximbank's authority to 
use the Tied Aid Credit Fund through September 30, 2001.

 section 4--extension of authority to provide financing for the export 
of nonlethal defense articles or services the primary end use of which 
                     will be for civilian purposes

Present law
      Eximbank's authority pursuant to section 2(b)(6)(I)(i) of 
the Eximbank Act to provide finance for dual-use items (i.e., 
nonlethal defense articles or services the primary end use of 
which will be for civilian purposes) expired on September 30, 
1997.
Senate bill
      The Senate bill (sec. 4) extends Eximbank's authority to 
finance the export of dual-use items for four years through 
September 30, 2001.
House amendment
      The House amendment (sec. 3) has an identical provision.
Conference agreement
      The conference agreement extends the Eximbank's authority 
to finance the export of dual-use items through September 30, 
2001.

section 5--clarification of procedures for denying credit based on the 
                           national interest

Present law
      Section 2(b)(1)(B) of the Eximbank Act provides that the 
President of the United States may instruct Eximbank to deny an 
application for credit for non-financial or non-commercial 
considerations only in cases where the President determines 
that such action would clearly and importantly advance United 
States policy in such areas as international terrorism, nuclear 
proliferation, environmental protection, and human rights.
Senate bill
      No provision.
House amendment
      The House bill (sec. 4) amends section 2(b)(1)(B) of the 
Eximbank Act to provide that (1) the President, when 
considering whether to deny Eximbank credit based on the 
national interest, must consult with the Committee on Banking 
and Financial Services of the House of Representatives and 
Committee on Banking, Housing and Urban Affairs of the Senate 
and (2) the determination to deny credit must be delivered to 
the President of Eximbank in writing, state that the 
determination is made pursuant to this section, and specify the 
applications, or categories of applications for credit which 
should be denied by the Bank in furtherance of the national 
interest.
Conference agreement
      The conference agreement is the House provision.

                   section 6--administrative counsel

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 5) amends section 3(e) of the 
Eximbank Act to instruct the General Counsel of Eximbank to 
designate an attorney to serve as Assistant General Counsel for 
Administration whose sole or primary duty shall consist of 
providing directors, officers and employees of the Bank with 
appropriate legal counsel for advice on, and oversight of, 
issues relating to ethics, conflicts of interest, personnel 
matters, and other administrative law matters.
Conference agreement
      The conference agreement is the House provision with an 
amendment limiting the authority of the Assistant General 
Counsel for Administration to personnel matters and other 
administrative law matters.

          section 7--advisory committee for sub-saharan africa

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 6) amends section 2(b) of the 
Eximbank Act to instruct the Eximbank Board of Directors to (1) 
take prompt measures, consistent with the credit standards 
otherwise required by law, to promote the expansion of 
Eximbank's financial commitments to sub-Saharan Africa, (2) 
establish and use an advisory committee, to exist for a 
duration of 4 years, to advise the Board on implementation of 
this expansion of credit and recommend to the Board on how 
Eximbank can facilitate greater support by U.S. commercial 
banks for trade with sub-Saharan Africa, and (3) report to the 
Congress within 6 months after enactment of this Act, and 
annually for 4 years thereafter, on steps the Board has taken 
to implement this provision and any recommendations of the 
advisory committee.
Conference agreement
      The conference agreement is the House provision.

 section 8--increase in labor representation on the advisory committee 
                       of the export-import bank

Present law
      Section 3(d)(2) of the Eximbank Act establishes an 
Advisory Committee, which is toconsist of 15 members broadly 
representative of production, commerce, finance, agriculture, labor, 
services, and State government, no fewer than three of which shall be 
representative of the small business community.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 7) amends section 3(d)(2) of 
the Eximbank Act to require that no fewer than two of the 
members of the Advisory Committee be representative of the 
labor community.
Conference agreement
      The conference agreement is the House amendment, with an 
amendment requiring that no two representatives of the labor 
community appointed to the Advisory Committee shall be selected 
from the same labor union.

                    section 9--outreach to companies

Present law
      Section 2(b)(1)(E)(i)(I) of the Eximbank Act instructs 
Eximbank to encourage the participation of small business in 
international commerce by developing a program which gives fair 
consideration to making loans and providing guarantees for the 
export of goods and services by small business.
Senate bill
      The Senate bill (sec. 5) amends section 2(b)(1) of the 
Eximbank Act to instruct the Chairman of the Bank to enhance 
Eximbank's capacity to provide information about Eximbank's 
programs to small and rural companies which have not previously 
participated in Eximbank's programs, and to report within 1 
year on actions taken pursuant to this provision.
House amendment
      The House amendment (sec. 8) amends section 2(b)(1) of 
the Eximbank Act to instruct the Chairman of the Bank to design 
and implement a program to provide information about Bank 
programs to companies which have not yet participated in its 
programs, and to report within 1 year on actions taken pursuant 
to this provision.
Conference agreement
      The conference agreement is the Senate provision.

 section 10--clarification of the objectives of the export-import bank

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 9) amends section 2(b)(1) of 
the Eximbank Act to instruct Eximbank and its Board of 
Directors to prescribe regulations and implement procedures to 
ensure that, in selecting from among firms to which to provide 
financial assistance, Eximbank gives preference to any firm 
that has shown a commitment to reinvestment and job creation in 
the United States.
Conference agreement
      The conference agreement amends section 2(b)(1)(A) of the 
Eximbank Act to state that it is the policy of the United 
States to foster the expansion of exports, thereby contributing 
to a commitment to reinvestment and job creation in the United 
States.

  section 11--including child labor as a criterion for denying credit 
                     based on the national interest

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 13) amends section 2 of the 
Eximbank Act to prohibit Eximbank from providing assistance in 
support of exports to entities that employ children in a manner 
that would violate United States law regarding child labor if 
the entity were located in the United States or has not made a 
binding commitment to not employ children in such manner.
Conference agreement
      The conference agreement amends the ``Chafee Amendment'' 
in section 2(b)(1)(B) of the Eximbank Act to identify child 
labor as a human right that could serve as the basis for a 
Presidential determination to deny applications for credit for 
non-financial or non-commercial considerations.

   section 12--prohibition relating to russian transfers of certain 
               missiles to the people's republic of china

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 12) amends section 2(b) of the 
Eximbank Act to require the President, if made aware that 
Russia has transferred or delivered to the People's Republic of 
China an SS-N-22 or SS-N-26 missile system, to notify Eximbank 
which, upon receipt of such notification, shall discontinue 
financing exports to Russia.
Conference agreement
      The conference agreement amends section 2(b) of the 
Eximbank Act to require the President, upon determining that 
the Russian Government or military has transferred or delivered 
to the People's Republic of China an SS-N-22 missile system and 
that the transfer or delivery represents a significant and 
imminent threat to the security of the United States, to notify 
Eximbank which, upon receipt of such notification and if so 
directed by the President, shall discontinue providing finance 
in connection with the purchase of any good or service by the 
Russian Government or military.
      For purposes of this provision, the definition of 
``Russian Government or military'' shall include state-owned 
enterprises.

preference in export-import bank assistance for exports to china to be 
           provided to companies adhering to code of conduct

Present law
      No provision.
Senate bill
      No provision.
House amendment
      The House amendment (sec. 10) amends section 2 of the 
Eximbank Act to instruct the Board of Directors, when 
determining whether to provide financial support for exports to 
the People's Republic of China, to give preference to entities 
that the Board determines have established and are adhering to 
a code of conduct set forth in the provision.
Conference agreement
      The conference agreement has no provision.
      The Committee urges the Government of the United States, 
consistent with the primary mission of export finance to 
protect and expand jobs in the United States by supporting 
exports that would not otherwise go forward, to promote efforts 
among recipients to respect internationally recognized human 
and worker rights. These would include a recipient's good faith 
effort to provide a safe and healthy workplace; avoid child and 
forced labor; avoid discrimination based on race, gender, 
national origin, or religious beliefs; respect freedom of 
association, the right to organize and bargain collectively; 
pay not less than a country's minimum wage required by local 
law; provide all legally mandated benefits; obey all applicable 
environmental laws; comply with international standards 
regarding illicit payments; respect free expression; encourage 
good corporate citizenship and make a positive contribution to 
the communities in which the entity operates; and encourage 
similar behavior by partners and suppliers.
      Especially regarding China, the Committee expects the 
Government to carefully consider the business practices of 
those entities receiving financing. The Committee believes that 
promoting and recognizing good corporate citizenship will 
ensure that a ``constructive engagement'' policy towards China 
indeed promotes democracy and human rights.

                renaming of the u.s. export-import bank

Present law
      The first section of the Eximbank Act names Eximbank the 
``Export-Import Bank of the United States.''
Senate bill
      No provision.
House amendment
      The House amendment (sec. 11) amends the first section of 
the Eximbank Act to rename Eximbank as the ``United States 
Export Bank.''
Conference agreement
      The conference agreement has no provision.

                                   James A. Leach,
                                   Michael N. Castle,
                                   Douglas Bereuter,
                                   John J. LaFalce,
                                   Floyd H. Flake,
                                 Managers on the Part of the House.

                                   Alfonse D'Amato,
                                   Rod Grams,
                                   Chuck Hagel,
                                   Paul Sarbanes,
                                   Carol Moseley-Braun,
                                Managers on the Part of the Senate.