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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-470
_______________________________________________________________________


 
MAKING SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 1998, AND FOR OTHER PURPOSES
                                _______
                                

 March 27, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Livingston, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             togehter with

                            DISSENTING VIEWS

                        [To accompany H.R. 3580]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
supplemental appropriations and rescissions for the fiscal year 
ending September 30, 1998, and for other purposes.

                            BILL HIGHLIGHTS

    The bill recommended by the Committee includes 
$17,900,000,000 for the International Monetary Fund. This 
amount is made up of $3,400,000,000 for loans to the 
International Monetary Fund and $14,500,000,000 for the United 
States quota, International Monetary Fund. The bill also 
includes $505,000,000 for payment of arrearages to the United 
Nations. This amount is made up of $475,000,000 of advance 
fiscal year 1999 appropriations and $30,000,000 of advanced 
fiscal year 2000 appropriations. Also included in the bill is a 
mandatory appropriation of $550,000,000 for veterans 
compensation and pensions. Finally, the bill includes 
$134,003,000 for regular non-defense discretionary 
appropriations which are fully offset.

                  TITLE I--SUPPLEMENTAL APPROPRIATIONS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                        Office of the Secretary

    The Secretary of Agriculture currently has the authority to 
compensate individuals and other persons for economic losses 
associated with the presence of karnal bunt in wheat. Current 
law only permits compensation for individuals who suffer losses 
due to the actual presence of karnal bunt. Individuals who 
suffer economic losses due to lengthy USDA quarantines, but 
where there is not presence of karnal bunt are not eligible for 
compensation. This provision allows the Secretary to establish 
a program to compensate individuals for economic losses when 
the quarantine itself caused the economic loss.

                      Departmental Administration

    The Committee provides $4,300,000 for Departmental 
Administration activities. Of the funds provided, $1,900,000 
will be used for resource management, real and personal 
property management, procurement and contracting support and 
other administrative functions. Also, $2,400,000 of the 
additional funds will be used to increase civil rights 
activities for the Department's personnel function, conflict 
resolution, and outreach. The Committee does not concur with 
additional funds for an advisory committee, but expects that if 
the Department establishes a new advisory committee, to do so 
within existing limitations.

                     Office of the General Counsel

    The Committee provides an increase of $235,000 for the 
Office of the General Counsel. These funds would be used for 
increased processing and adjudication of civil rights 
complaints brought by both employees and applicants for 
employment in the Department, as well as by individuals who 
allege violations of their civil rights in programs 
administered by the Department.

                          Farm Service Agency

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

    The Committee provides an additional $39,448,000 for direct 
farm ownership loans, $25,000,000 for guaranteed farm ownership 
loans, $9,528,000 for direct farm operating loans, $40,000,000 
for guaranteed subsidized farm operating loans, and $18,814,000 
for boll weevil eradication loans. The Committee is aware of a 
backlog of applications for most ownership and operating loan 
programs and accordingly provides additional funds.

                       Food and Nutrition Service

                           FOOD STAMP PROGRAM

    The Committee includes language to allow Food Stamp Program 
Employment and Training funds to remain available until 
expended.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

    The Committee provides language to allow the Food and Drug 
Administration to collect and spend $15,596,000. Subsequent to 
passage of the fiscal year 1998 Appropriations Bill, there was 
a change in the authorized amount of Prescription Drug User 
Fees allowed for collections. The provision allows collection 
and expenditure of the authorized amount.

                               CHAPTER 2

                          DEPARTMENT OF STATE

              International Organizations and Conferences

                           ARREARAGE PAYMENTS

    The Committee recommends supplemental funding of 
$505,000,000 for payment of peacekeeping arrearages to the 
United Nations, of which $475,000,000 is an advance 
appropriation for fiscal year 1999 and $30,000,000 is an 
advance appropriation for fiscal year 2000. This compares with 
a supplemental request of $921,000,000 for payment of 
arrearages for international organization and peacekeeping 
assessments to the United Nations as well as 45 other 
international organizations, of which $475,000,000 was 
requested as an advance appropriation for fiscal year 1999 and 
$446,000,000 was requested as an advance appropriation for 
fiscal year 2000. The Committee recommendation makes the 
expenditure of funds subject to enactment of authorization 
legislation, which will set forth the reform conditions that 
will be required to be met, and also assures that none of these 
funds, which are intended for payment of arrearages to the 
United Nations, will be expended until the United States' 
assessment for the United Nations regular budget is reduced to 
22 percent and the peacekeeping assessment is capped at 25 
percent.
    The Committee recommendation provides the balance of funds 
necessary to pay what the State Department has indicated is the 
amount the United States owes to the United Nations. Of the 
total funding of $1,021,000,000 requested by the Administration 
for payment of arrearages in the fiscal year 1998 
appropriations bill and in this supplemental, $712,000,000 was 
justified as the amount owed to the United Nations ($54,000,000 
for regular budget arrearages and the balance for 
peacekeeping), and $309,000,000 was justified as the amount 
owed to 45 other international organizations. The $505,000,000 
recommended in this bill, together with the $100,000,000 
provided in the regular fiscal year 1998 appropriations bill, 
and a provision in the pending State Department authorization 
bill allowing $107,000,000 owed by the United Nations to the 
United States to be credited against U.S. arrearages to the 
United Nations, will result in the full $712,000,000 sought by 
the Administration for United Nations arrearages being made 
available.
    The recommendation to provide advance funding is based on 
the Administration's representation that these funds are 
necessary to assure that the United Nations will act in May to 
reduce the United States assessment rate for both the regular 
budget and peacekeeping, one of the reforms currently being 
sought by the United States. The Committee is not aware of any 
similar rationale for providing an advance appropriation at 
this time for payment of arrearages to the 45 other 
organizations, and believes that the arrearages to those 
organizations can be considered in the regular order.
    The Administration's request did not condition the release 
of the arrearage funding on achievement of any reforms, despite 
the Administration's stated position that arrearages should be 
funded only if real and substantial reforms at the United 
Nations are achieved. In order to assure that real and 
substantial reforms are achieved prior to payment of arrearage 
funding, the Committee has recommended that these funds become 
available upon enactment of an authorization that spells out 
what reforms need to be put in place as a condition for the 
release of these funds. In addition, to be sure that assessment 
reductions are part of the reforms that will be put into place, 
the Committee has also explicitly required assessment 
reductions as one reform that specifically needs to be achieved 
prior to the release of these funds.

                               CHAPTER 3

                          DEPARTMENT OF ENERGY

                      Departmental Administration

    The Committee recommendation includes a provision which 
would provide the Department of Energy the authority to 
increase the cost of work for others program within the 
Departmental Administration account by $5,408,000 as long as 
the increased costs are offset by revenue increases of the same 
or greater amount. The additional work will occur in the 
Department's foreign research reactor spent nuclear fuel 
program during fiscal year 1998. Spent nuclear fuel elements 
that the United States previously provided to foreign nations 
as energy sources are received and managed at the Department's 
Savannah River Site in South Carolina. The revenues are 
payments received from the foreign nations for the management 
of these spent nuclear fuel elements at the Savannah River 
Site.

                    Atomic Energy Defense Activities

         Defense Environmental Restoration and Waste Management

    The Committee recommendation does not include the request 
to transfer $12,000,000 to the Defense Environmental 
Restoration and Waste Management appropriation account from 
various other Department of Energy accounts. The Committee 
understands the need to find additional funding to accelerate 
the transfer of material from tanks at the Hanford site in 
Washington. However, the source of funds identified for this 
transfer is not acceptable to the Committee. The Department is 
urged to look within the Defense Environmental Restoration and 
Waste Management appropriation account for funds which could be 
transferred to this higher priority activity, and submit 
expeditiously a reprogramming request for this activity.

                    General Provisions--This Chapter

    Sec. 301. The Committee has recommended language which 
directs the Secretary of the Army to use continuing contracts 
for construction projects identified in the Conference Report 
accompanying the Energy and Water Development Appropriations 
Act, 1998 (P.L. 105-62). The Army Corps of Engineers has had 
the authority to use continuing contracts for improvements to 
rivers and harbors since 1922. The authority, codified at 33 
U.S.C. 621, permits the Corps to develop and implement project 
design and construction schedules that encourage effective 
management and efficient execution of the civil works program. 
The flexibility to award multi-year contracts helps keep 
projects on schedule and reduces total costs. In recognition of 
sound engineering principles and prudent construction 
management practices, the authority continues to be used by the 
Corps. Therefore, the Committee is concerned that the Office of 
Management and Budget has limited the exercise of this 
authority through the apportionment of fiscal year 1998 
appropriated funds. In doing so, the Office of Management and 
Budget does not appear to be following the letter, nor the 
spirit, of 31 U.S.C. 1512, which states in part: ``An 
appropriation for an indefinite period and authority to make 
obligations by contract before appropriations shall be 
apportioned to achieve the most effective and economical use.'' 
Regrettably, the Committee must resort to Act language to 
ensure the continued use of the authority of 33 U.S.C. 621. The 
Committee fully supports the apportionment process, which in 
its present form dates back to 1950, but desires that it be 
used for its intended purpose and not employed by the Office of 
Management and Budget as a political weapon.
    Sec. 302. The Committee recommendation exempts the worker 
transition plan for the Pinellas Plant site from section 303 of 
Public Law 105-62, the Energy and Water Development 
Appropriations Act, 1998. Section 303 prohibits the use of 
funds to develop or implement a work force restructuring plan 
for Federal employees of the Department of Energy. However, the 
work force restructuring plan to support the accelerated 
closure of the Department's Pinellas Plant in Florida was 
developed before enactment of the fiscal year 1998 
appropriation. One specific benefit offered to Federal 
employees was post-separation career retraining for those 
employees who agreed to remain until no longer needed.
    There are eight Federal employees who remained until plant 
closure and who began to use the education benefits. This 
proposal would allow those employees to be provided benefits 
under the Pinellas Federal Work Force Restructuring Plan to 
complete their retraining. The estimate of the cost to the 
government ranges from $60,000 to $80,000, which would be 
provided from within existing funds.

                               CHAPTER 4

       FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS

                  Funds Appropriated to the President

                    International Monetary Programs

                  Loans to International Monetary Fund

    The Committee recommends $3,400,000,000 in budget authority 
only, the same as the administration request for the United 
States share of a new supplemental line of credit extended to 
the International Monetary Fund by participating countries. The 
New Arrangements to Borrow (NAB) would establish a set of 
individual credit lines that would serve as a ``reserve fund'' 
intended to supplement the IMF's resources when it is 
responding to financial crises that threaten the stability of 
the international monetary system.
    In addition, authority has been provided to consolidate and 
use funds previously appropriated to the General Arrangements 
to Borrow (GAB) for the purposes of the NAB. The combination of 
GAB and NAB resources provided by the United States and other 
participating nations will make available to the IMF 
approximately $48,000,000,000 in supplemental emergency 
facilities that could be used to respond to a major 
international financial crisis.
    The exceptional demands placed on the IMF's ordinary 
resources by several Asian member countries over the last 
several months make the appropriation of the dollar equivalent 
of 2,462,000,000 Special Drawing Rights to cover the United 
States share of the proposed NAB more urgent than when it was 
first requested in early 1997.
    The recent crisis in East Asia has made more urgent the 
need for the NAB in cases where a financial crisis spreads 
beyond a single country and threatens the stability of 
international financial markets. The Committee has been made 
aware of a number of instances in which United States jobs and 
export opportunities already have been adversely affected by 
the instability and decline of certain Asian national 
economies. The negative impact on economic growth and American 
jobs would be much greater if the international financial 
system lacks the skill and resources to respond to any new 
crisis in Asia or in other regions.
    In particular, the Committee is concerned about the 
possible adverse impact of IMF-led programs in East Asia on the 
United States semi-conductor industry. The Committee finds that 
a healthy U.S.-based semi-conductor industry is vital to this 
Nation's security. Further, the Committee is aware that past 
governments of Korea have directed official lending to favored 
export-oriented industries, including the semi-conductor 
industry, threatening the continued existence of U.S.-based 
competitors. The Committee urges the President to ensure that 
no American resources are made available directly, or 
indirectly, to promote unfair competition against the American 
semi-conductor industry.
    Authority to automatically adjust the statutory limit on 
discretionary budget authority for or on behalf of the IMF is 
contained in Public Law 105-33, the Balanced Budget Act of 
1997. Because of these provisions in the 1990 and 1997 budget 
accords, amounts appropriated for the NAB do not crowd out 
other essential international or domestic discretionary 
programs.

            United States Quota, International Monetary Fund

    The Committee recommends $14,500,000,000 in budget 
authority only, the same as the administration request for the 
United States share of the tenth periodic increase in the 
quotas of the International Monetary Fund. The recommended bill 
language provides an appropriation for the dollar equivalent of 
10,622,500,000 Special Drawing Rights.
    In accordance with a long-standing agreement between 
Congress and the Executive branch, an increase in IMF quotas is 
not scored as outlays, and thus does not increase the deficit. 
Any temporary transfer of dollars to the IMF is offset by 
another monetary asset in the form of an interest bearing, 
highly liquid claim on the IMF that is backed by its gold 
reserves.
    Authority to automatically adjust the statutory limit on 
discretionary budget authority for the IMF is contained in 
Public Law 105-33, the Balanced Budget Act of 1997. Because of 
these provisions in the 1990 and 1997 budget accords, amounts 
appropriated for the IMF do not crowd out other essential 
international or domestic discretionary programs.
    The Committee is recommending that the appropriation for 
the IMF quota increase be withheld from obligation until the 
Secretary of the Treasury notifies the Committee that the IMF 
has agreed to incorporate in all of its major loans a 
commitment by borrowers to honor international trade 
agreements, eliminate government-directed lending, and 
guarantee non-discriminatory in debt resolution procedures.
    The Committee recommendation sets out special reporting 
requirements for IMF programs that also involve contingent 
commitments by the Secretary of the Treasury to use the 
Exchange Stabilization Fund. At the present time, this 
provision affects Korea. The reports include the following: (a) 
the extent of progress in making conglomerate business 
practices more transparent through the application of 
internationally accepted accounting practices, independent 
external audits, full disclosure, and provision of consolidated 
statements; (b) the success of measures undertaken by the 
United States Government and the International Monetary Fund to 
ensure that no government subsidized support or tax privileges 
will be provided to bail out individual corporations, 
particularly in the semiconductor, steel, plywood, and paper 
industries; and (c) whether International Monetary Fund 
involvement in labor market flexibility measures has had a 
negative effect on worker rights in recipient countries.
    Recognizing the broad range of comments by former senior 
officials of the U.S. Government concerning the efficacy of the 
IMF and other international financial institutions before and 
during the recent crisis in East Asia, the Committee recommends 
the creation of an advisory commission on the international 
financial system to report within 180 days. The commission is 
requested to report on the future role and responsibilities of 
the International Monetary Fund and the International Bank for 
Reconstruction and Development and other matters that it may 
include in its report. The commission would be chaired by a 
former Secretary of the Treasury and would include members 
representing labor, agriculture, industry, banking, and 
nongovernmental environmental and human rights organizations. 
The commission is also asked to address the continuing 
usefulness of the large number of policy goals set forth by 
Congress for the Fund and the Bank.
    In addition, the Committee has clarified language from the 
last IMF quota increase in 1992 to clarify that currency boards 
should be utilized in IMF programs only when practicable.
    Finally, the Committee is prepared to amend bill language 
incorporating most of H.R. 3114, the International Monetary 
Fund Reform and Authorization Act of 1998, reported from the 
Committee on Banking and Financial Services on March 18, 1998. 
Language from H.R. 3114, as amended, not included in the 
Appropriations Committee recommendation include: the section on 
Findings; references to specific individuals and ethnic groups; 
and the requirement that the views of a United Nations agency 
be taken into account by a United States official. The proposed 
Advisory Committee on IMF Policy has been expanded to include 
former Secretaries of the Treasury, and many of the 
transparency conditions proposed by the Chairman of the Joint 
Economic Committee in H.R. 3331 have been substituted for those 
in Section 302 of H.R. 3114.

                     BILATERAL ECONOMIC ASSISTANCE

                  Other Bilateral Economic Assistance

                         Economic Support Fund

    For fiscal year 1998, the Administration has provided an 
allocation under ``International Narcotics Control'' that 
results in a $31,000,000 shortfall in support for counter-
narcotics activities in Bolivia, including support for 
alternative development and for law enforcement activities. The 
new government of Bolivia has made a commitment to eradicate 
illegal drug activities within five years, and the Committee 
believes that the country deserves the full support of the 
United States in this effort. Therefore the Committee is 
recommending bill language that recommends the shortfall should 
be reprogrammed from within the funds appropriated for fiscal 
year 1998 for the Economic Support Fund.

                               CHAPTER 5

                       DEPARTMENT OF THE INTERIOR

                      MINERALS MANAGEMENT SERVICE

                Royalty and Offshore Minerals Management

    The Committee recommends $6,675,000 for royalty and 
offshore minerals management to meet workload requirements for 
the Gulf of Mexico offshore oil and gas leasing program on the 
Outer Continental Shelf. These additional funds are to be 
derived from increased receipts.
    The Committee acknowledges that offshore leasing has 
increased dramatically over the past few years; however, this 
fact has been known for some time and should have been 
incorporated in the fiscal year 1998 budget request. The 
Committee expects the Department and the Administration to do a 
better job of identifying Service needs in future budget 
requests.
    The Committee is aware of the success of the past four 
lease sales in the Gulf of Mexico, and understands that since 
enactment of the Deep Water Royalty Relief Act, revenues from 
lease sales in the deep water have been more than $1.2 billion 
in excess of estimates. Furthermore, the Committee expects that 
existing financial terms will be maintained for lease sales in 
the remaining incentive period, including minimum bids and 
royalty rates.

          OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

                    Abandoned Mine Reclamation Fund

                     (Including Transfer of Funds)

    The Committee recommends $3,163,000 for the abandoned mine 
reclamation fund. These additional funds are to be derived by 
transfer from the fiscal year 1998 appropriation for the 
regulation and technology account. The purpose of this 
realignment of funds is to reflect accurately the funding 
requirements for the programs in each of these accounts.

                        BUREAU OF INDIAN AFFAIRS

                      Operation of Indian Programs

    The Committee recommends $1,050,000 for the operation of 
Indian programs to provide document review and retrieval in 
support of litigation involving individual Indian trust fund 
accounts. Funds have also been provided in the Office of 
Special Trustee for American Indians for this purpose.
    The Committee is extremely concerned about the potential to 
drain millions of dollars away from high-priority native 
American programs designed to address significant social and 
economic problems on reservations, and instead use these funds 
for document searches in support of this class action suit. The 
Committee expects the Office of the Solicitor in coordination 
with the Bureau of Indian Affairs and the Office of Special 
Trustee for American Indians to provide quarterly reports on 
the status of both IIM and tribal litigation and settlements. 
In addition to these quarterly reports, the Committee expects 
to be kept informed on the status of litigation and settlements 
on a continuing and more frequent basis.

                          DEPARTMENTAL OFFICES

             OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS

                         Federal Trust Programs

    The Committee recommends $4,650,000 for Federal trust 
programs to provide document review and retrieval in support of 
litigation involving individual Indian trust fund accounts. 
Funds have also been provided in the Bureau of Indian Affairs 
for this purpose. The Committee's concerns with respect to the 
long term ramifications of this program are addressed under the 
Bureau of Indian Affairs, Operation of Indian Programs account.

                           GENERAL PROVISION

    Section 501 amends title III of the Public Health Service 
Act to allow funds made available in Public Law 105-33 to the 
Indian Health Service for diabetes programs in fiscal years 
1998 through 2002 to remain available until expended.

                               CHAPTER 6

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                  Health Care Financing Administration

                           Program Management

    The Committee provides $16,000,000 as requested by the 
Administration for Health Care Financing Administration, 
Program Management for administrative simplification activities 
and Federal oversight and enforcement of health insurance 
portability and access in support of the Health Insurance 
Portability and Accountability Act of 1996. Of this amount, 
$6,000,000 would be used to monitor private insurance 
compliance in States that have failed to enact reforms 
specified in that Act and $10,000,000 would be used to develop 
and implement the National Provider Identifier, the Payer 
Identifier, and other administrative simplification provisions 
of the Act.

                        Office of the Secretary

                    General Departmental Management

    The bill includes language specifying an amount for funding 
certain prevention service demonstration grants under title XX 
of the Public Health Service Act that were originally funded in 
fiscal year 1997 and that are to be continued in fiscal year 
1998. The Committee directs that care services are to be funded 
in FY 1998 at not less than $2,400,000.

                        DEPARTMENT OF EDUCATION

                           Special Education

    The Committee has included a provision in the bill to 
ensure that $600,000 is spent in fiscal year 1998 for the Early 
Childhood Development Project of the Easter Seal Society for 
the Mississippi River Delta Region. This project was 
specifically identified for funding in the conference report on 
the FY 1998 appropriations bill, as it had been also in the 
House and Senate committee reports. The Department will proceed 
expeditiously to fund this project as specified by the 
Congress.

                    GENERAL PROVISIONS--THIS CHAPTER

    The bill includes language that would allow a State's 
``State Children's Health Insurance Program'' plan under title 
XXI of the Social Security Act to be approved up until 
September 30, 1999 and enable the State to still be eligible 
for its FY 1998 allotment. The language would also postpone to 
the end of FY 1999 the Administration's statutory obligation to 
reapportion to other States unused FY 1998 funds. It would not 
add any additional time for the State to spend these funds, 
however; FY 1998 allotments would still be available for 
expenditure only through the end of FY 2000.
    The Committee provides for a limitation on obligations of 
not to exceed $67,400,000 for Peer Review Organizations as an 
offset for the increase in Health Care Financing 
Administration, Program Management. This was requested by the 
Administration.

                               CHAPTER 7

                           LEGISLATIVE BRANCH

                        CONGRESSIONAL OPERATIONS

                        HOUSE OF REPRESENTATIVES

      Payments to Widows and Heirs of Deceased Members of Congress

    Funds are provided for the customary death gratuity for the 
widow of Walter Capps, late a Representative of the State of 
California and for the widow of Sonny Bono, late a 
Representative of the State of California. The amounts provided 
reflect the annual salary of Mr. Capps and Mr. Bono at the time 
of their deaths.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds

                           capitol buildings

                         salaries and expenses

    The bill contains $7,500,000 for an extensive repair and 
rehabilitation of the Capitol dome. These funds will be used 
for the first phase of the project which involves a complicated 
chemical and mechanical removal of several layers of lead-based 
paint from the interstitial space between the outer and inner 
domes, and repainting those surfaces. During this phase, the 
metal super- and sub-structure will be studied so that the 
scope of the entire project can be fully ascertained. 
Additional work in later phases will involve repairing cast 
iron, mechanical, electrical, and other structural elements of 
the dome. The current estimate of the entire project is $26.5 
million. This phase of the project is being funded in the 
supplemental due to the urgency of dealing with the condition 
of the dome which requires immediate attention.

                            capitol grounds

    The bill contains $20,000,000 for Capitol grounds, of which 
not to exceed $4,000,000 shall be transferred to the Capitol 
police, for the Capitol square perimeter security plan. This 
project will provide much-needed improvements and replacements 
to existing physical grounds security, and will result in 
replacing the unsightly and deteriorating planters that form 
perimeter barriers with bollards which are more suitable for 
the purposes of security and appearance. In addition, more 
efficient traffic flows will be established at grounds 
entrances. These funds are included in this bill due to the 
urgency of the need for improved security, as recommended to 
the Committee by the Capitol Police Board. The expenditure of 
these funds is subject to the review and approval by the 
appropriate House and Senate authorities, including the 
Committees on Appropriations of the House and Senate, the 
Speaker of the House, the Committee on House Oversight, and the 
Senate Committee on Rules and Administration.

                               CHAPTER 8

           DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

                         Amtrak Reform Council

    The bill includes $2,450,000 for costs associated with the 
independent assessment of Amtrak which was authorized by the 
Amtrak Reform and Accountability Act of 1997 subsequent to 
enactment of the fiscal year 1998 Department of Transportation 
and Related Agencies Appropriations Act. Funds provided under 
this heading remain available until September 30, 1999.

                            RELATED AGENCIES

                  National Transportation Safety Board

                         salaries and expenses

    The bill provides $5,400,000 for the National 
Transportation Safety Board to continue its investigation of 
the TWA Flight 800 accident in the Calverton facility. These 
funds will fund the full 1998 Calverton rental costs, including 
heating, supplies, and personnel, and $500,000 for security 
functions previously performed by the Federal Bureau of 
Investigation. The appropriation assumes closure of the 
Calverton airfield and termination of associated fire-fighting 
costs.

                               CHAPTER 9

                       DEPARTMENT OF THE TREASURY

                Year 2000 Century Date Change Conversion

    The Administration has requested that the Department of the 
Treasury be given the authority to transfer, subject to advance 
notice being transmitted to the Appropriations Committee, up to 
$250,000,000 from any funds available to the Department to any 
other Department account in order to fund essential Year 2000 
century date change conversion requirements. The Committee is 
committed to providing the resources the Department needs to 
successfully complete Year 2000 conversion activities; however, 
the Committee has denied the Administration's request for 
Department-wide transfer authority. Instead, the Committee has 
provided, through direct appropriations ($33,410,000), and 
through the approval of reprogramming actions ($140,490,000), 
the total amount currently estimated by the Department to be 
required for Year 2000 conversion activities at the Internal 
Revenue Service ($63,200,000), the Financial Management Service 
($7,400,000), the United States Customs Service ($37,300,000), 
and for the Department-wide communications system 
($66,000,000). The Committee has also recommended the 
rescission of previously appropriated funds to offset amounts 
provided in this Act. The specific actions taken by the 
Committee in this bill are described below.

               Accountability for Year 2000 Expenditures

    Assuring that its information technology systems are Year 
2000 compliant is perhaps the most pressing challenge facing 
the Department of the Treasury today. To date, the Committee 
has provided $608,000,000 for Year 2000 compliance within the 
Department of the Treasury, including $419,000,000 in the 
current fiscal year. While resources are important, the 
Committee strongly believes that the key to successful 
completion of this program throughout the Federal government is 
aggressive management. The Committee commends the Department of 
the Treasury for taking such a role in addressing its Year 2000 
problem. The Committee also believes that the Department needs 
to retain Year 2000 compliance as a priority until all 
conversion efforts are complete. However, based on information 
recently provided to the Committee, and the most recent 
quarterly report furnished by the Department to the Office of 
Management and Budget, it appears that a more thorough analysis 
of Year 2000 conversion resource requirements is needed.
    The Committee directs the Department of the Treasury to 
submit a copy of its Year 2000 Quarterly Progress Report to the 
Committee on Appropriations at the same time as it is submitted 
to the Office of Management and Budget. Additionally, the 
Committee directs the Department to submit, by Bureau, an 
inventory and the status of mission critical information 
systems, as well as non-information technology, communications, 
and other equipment that requires Year 2000 conversion. 
Finally, the Committee directs the Department to report to the 
Committee on Appropriations on the total estimated Year 2000 
costs, by Bureau, for each of the next five fiscal years. This 
report should be submitted no later than September 1, 1998.

                         Automation Enhancement

    The Committee recommends an appropriation of $28,410,000 in 
the Department's Automation Enhancement account for Year 2000 
Century Date Change activities associated with the Treasury 
Communications System. Of the total appropriated, $10,410,000 
is not available for obligation until September 1, 1998. This 
appropriation, combined with the approval of a reprogramming 
action, will provide a total of $66,000,000 for this effort.

           Treasury Building and Annex Repair and Restoration

    The Committee has provided $17,000,000, which shall not 
become available for obligation until September 1, 1998, for 
the Department's Treasury Building and Annex Repair and 
Restoration account to replenish amounts rescinded to provide 
for the Department's immediate Year 2000 conversion needs.

                      Financial Management Service

                         Salaries and Expenses

    The Committee recommends an appropriation of $5,300,000 for 
the Financial Management Service to undertake essential Year 
2000 century date change conversion activities. This 
appropriation, combined with the approval of a reprogramming 
action, will provide a total of $7,400,000 for Year 2000 work 
at the Financial Management Service.

                           General Provisions

                Departments, Agencies, and Corporations

    The Committee has taken no action in response to the 
Administration's proposal to repeal section 642 of the Treasury 
and General Government Appropriations Act, 1998, the Federal 
Employees' Retirement System Open Enrollment Act of 1997.

                               CHAPTER 10

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                       Compensation and Pensions

    An appropriation of $19,932,997,000 was provided for the 
compensation and pensions account in fiscal year 1998. The VA 
is requesting a supplemental appropriation of $550,000,000 for 
the compensation and pensions account. Of this amount, 
$303,400,000 is due to the 2.1 percent cost-of-living 
adjustment that was effective December 1, 1997 as authorized in 
the Veterans' Compensation Rate Amendments Act of 1997. The 
remaining $246,600,000 is required primarily because of 
increases in the average cost per claim due to several factors 
including a higher degree of disability claimed and granted as 
well as higher than expected average payments to Vietnam and 
Gulf War veterans. A decrease in estimated pension costs due to 
lower than projected caseload partially offsets increased 
compensation costs. The Committee has included the supplemental 
budget request of $550,000,000 to provide the balance of funds 
required in fiscal year 1998 for the compensation and pensions 
appropriation.

                    Environmental Protection Agency

                   State and Tribal Assistance Grants

    Bill language has been included which clarifies that the 
eligible recipients of grants for pollution prevention, 
control, abatement, and related activities other than 
Performance Partnership Grants, are those eligible under EPA's 
organic statutes. In fiscal year 1997, this account was changed 
to include a statutory earmark of a specified amount for such 
grants, including Performance Partnership Grants. Past practice 
had been to include the funds for these grants in a lump sum 
appropriation. This change had the unintended effect of raising 
legal questions about the eligibility of some entities that 
have historically been eligible for these grants under the 
various organic statutes. The bill language resolves any 
ambiguity regarding their continuing eligibility. It does not, 
however, redefine those recipients eligible for Performance 
Partnership Grants pursuant to Public Laws 104-134 and 105-65.

                        Administrative Provision

    Bill language has been included which prevents the 
Environmental Protection Agency from imposing requirements of a 
carbon monoxide Federal implementation plan based on the Clean 
Air Act (CAA) as in effect prior to the 1990 amendments to this 
Act. This language is necessary to prevent the State of Arizona 
from being held to outdated Agency guidance developed under the 
1977 Clean Air Act Amendments while the State and EPA work 
jointly to develop and implement a carbon monoxide State 
implementation plan consistent with the Clean Air Act 
Amendments of 1990.

             National Aeronautics and Space Administration

                           Human Space Flight

                          (TRANSFER OF FUNDS)

    The Committee has included language which would allow the 
transfer of $45,000,000 from the Mission support account and 
$128,000,000 from the Science, aeronautics and technology 
account to the Human space flight account for the International 
Space Station program. The amount provided is the same as the 
administration request.
    The Committee held a hearing on March 12, 1998 during which 
the NASA administrator and other NASA officials provided 
testimony regarding the progress of the International Space 
Station. In the course of the hearing, and during briefings 
provided to the Committee, it became clear that some additional 
funding would be needed for the program in fiscal year 1998. 
The fiscal year 1998 appropriations bill provided 
$2,351,300,000 for the space station program. Still to be 
factored into the fiscal year 1998 requirements is the cost of 
taking contingency action as a result of continuing delays in 
the construction of the Service Module by Russia. The amount of 
transfer authority provided, coupled with an additional 
$27,000,000 already available from within the Human space 
flight account, will provide a total of $2,551,300,000 for the 
program in fiscal year 1998. The Committee believes this amount 
of funding will address the most urgent needs in the current 
fiscal year to maintain the program on a schedule which will 
minimize total program costs.

                               CHAPTER 11

              DEPARTMENT OF DEFENSE--MILITARY CONSTRUCTION

    The Committee recommends language which provides that, 
using amounts appropriated in Public Law 104-196 for ``Military 
Construction, Navy'' for a project at North Island Naval Air 
Station, California, and contributions from state and local 
governments, the Secretary of the Navy, in cooperation with 
local governments, shall carry out beach replenishment using 
sand obtained from any location. Contributions from state and 
local governments for beach replenishment are available only 
for beach replenishment activities performed after the date of 
enactment of this Act.

                    Family Housing Improvement Fund

    The Department of Defense is delaying the execution of 
family housing construction projects for which funds have been 
appropriated, for possible transfer into the Family Housing 
Improvement Fund. Funds that were appropriated for specific 
construction projects should be executed as justified to 
Congress. The Committee supports the Department's privatization 
efforts through the authorities that reside in the Fund, but 
intends that previously approved construction projects proceed 
in order to improve the quality of life for service members and 
their families at the earliest possible date.
    The President's Budget for fiscal year 1999 indicates that 
the Family Housing Improvement Fund had an unobligated balance 
of $28,000,000 available at the beginning of fiscal year 1998, 
and that no further funds would be transferred into the Fund 
during fiscal year 1998. Thus, based on the Administration's 
budget, this balance is sufficient to carry out planned 
activities throughout fiscal year 1998, and the execution of 
previously approved construction projects will cause no delays 
in privatization efforts.
    The Committee intends to review the operation of the Fund 
in detail in its action on the budget request for fiscal year 
1999.

         Picatinny Arsenal Armament Software Engineering Center

    The Committee provided $1.3 million in design funds for the 
Armament Software Engineering Center (ASEC) at Picatinny 
Arsenal in fiscal year 1998. The Committee urges the Department 
of the Army to release this funding without delay.

                         TITLE II--RESCISSIONS

                       DEPARTMENT OF AGRICULTURE

                     Agricultural Research Service

                              (rescission)

    The Committee recommends a rescission of $233,000 from the 
Agricultural Research Service. These reductions can be absorbed 
within available resources and will have a negligible impact on 
the program.

               Animal and Plant Health Inspection Service

                         salaries and expenses

                              (rescission)

    The Committee recommends a rescission of $350,000 from the 
Animal and Plant Health Inspection Service. These reductions 
can be absorbed within available resources and will have a 
negligible impact on the program.

                     Agricultural Marketing Service

                           marketing services

                              (rescission)

    The Committee recommends a rescission of $25,000 from the 
Agricultural Marketing Service. These reductions can be 
absorbed within available resources and will have a negligible 
impact on the program.

        Grain Inspection, Packers and Stockyards Administration

                         salaries and expenses

                              (rescission)

    The Committee recommends a rescission of $38,000 from the 
Grain Inspection, Packers and Stockyards Administration. These 
reductions can be absorbed within available resources and will 
have a negligible impact on the program.

                   Food Safety and Inspection Service

                              (rescission)

    The Committee recommends a rescission of $502,000 from the 
Food Safety and Inspection Service. These reductions can be 
absorbed within available resources and will have a negligible 
impact on the program.

                          Farm Service Agency

                         salaries and expenses

                              (rescission)

    The Committee recommends a rescission of $1,080,000 from 
the Farm Service Agency. These reductions can be absorbed 
within available resources and will have a negligible impact on 
the program.

           Agricultural Credit Insurance Fund Program Account

                        guaranteed unsubsidized

                              (rescission)

    The Committee recommends a rescission of $6,737,000 from 
the Agricultural Credit Insurance Fund Program Account. These 
reductions can be absorbed within available resources and will 
have a negligible impact on the program.

                 Natural Resources Conservation Service

                        conservation operations

                              (rescission)

    The Committee recommends a rescission of $378,000 from the 
Natural Resources Conservation Service. These reductions can be 
absorbed within available resources and will have a negligible 
impact on the program.

                    conservation farm option program

    The Committee recommends limiting the conservation farm 
option program to not more than $11,000,000 in fiscal year 
1998. The reduction in the program for fiscal year 1998 would 
still be available for use in fiscal year 1999. The reduction 
is necessary to help costs for additional guaranteed farm 
operating loans.

                         Rural Housing Service

                         salaries and expenses

                              (rescission)

    The Committee recommends a rescission of $846,000 from the 
Rural Housing Service. These reductions can be absorbed within 
available resources and will have a negligible impact on the 
program.

                       Food and Nutrition Service

                      food program administration

                              (rescission)

    The Committee recommends a rescission of $114,000 from the 
Food and Nutrition Service. These reductions can be absorbed 
within available resources and will have a negligible impact on 
the program.

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                   management of lands and resources

                              (rescission)

    The Committee recommends a rescission of $1,188,000 for 
management of lands and resources. These funds are available 
for rescission from emergency funds provided in Public Law 104-
208 because restoration costs to restore public lands damaged 
by fire were lower than anticipated.

                   oregon and california grant lands

                              (rescission)

    The Committee recommends a rescission of $2,500,000 for 
Oregon and California grant lands. These funds are available 
for rescission from emergency funds provided in Public Law 104-
208 because restoration costs to restore public lands damaged 
by fire in Oregon were lower than anticipated.

                United States Fish and Wildlife Service

                          Resource Management

                              (Rescission)

    The Committee recommends a rescission of $250,000 for 
resource management. These funds were made available in the 
fiscal year 1997 supplemental appropriation to replace fish fry 
killed in the April 1997 snow storm in the Northeast and are 
not needed for that purpose. The fish fry were replaced at the 
North Attleboro National Fish Hatchery in Massachusetts for a 
much smaller amount of money using base funding.

                              Construction

                              (Rescission)

    The Committee recommends a rescission of $1,188,000 in 
unobligated balances for construction. The Department has 
reported that savings in this amount can be achieved through 
value engineering, reducing project scope and using 
standardized designs.

                         National Park Service

                              Construction

                              (rescission)

    The Committee recommends a rescission of $1,638,000 in 
unobligated balances for construction. The Department has 
reported that savings in this amount can be achieved through 
value engineering, reducing project scope and using 
standardized designs.

                            Bureau of Mines

                           Mines and Minerals

                              (rescission)

    The Committee recommends a rescission of $1,605,000 for 
mines and minerals. These funds are available for rescission 
due to uncosted balances remaining in contracts for which work 
has been completed.

                        Bureau of Indian Affairs

                              Construction

                              (rescission)

    The Committee recommends a rescission of $737,000 in 
unobligated balances for construction. The Department has 
reported that savings in this amount can be achieved through 
value engineering, reducing project scope and using 
standardized designs.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                     Forest and Rangeland Research

                              (rescission)

    The Committee recommends a rescission of $148,000 in 
unobligated balances for forest and rangeland research. The 
rescission is intended to offset supplemental appropriations 
for the Department's Civil Rights Initiative.

                       State and Private Forestry

                              (rescission)

    The Committee recommends a rescission of $59,000 in 
unobligated balances for State and private forestry. The 
rescission is intended to offset supplemental appropriations 
for the Department's Civil Rights Initiative.

                         National Forest System

                              (rescission)

    The Committee recommends a rescission of $1,094,000 in 
unobligated balances for the National forest system. The 
rescission is intended to offset supplemental appropriations 
for the Department's Civil Rights Initiative.

                        Wildland Fire Management

                              (rescission)

    The Committee recommends a rescission of $148,000 in 
unobligated balances for wildland fire management. The 
rescission is intended to offset supplemental appropriations 
for the Department's Civil Rights Initiative.

                    Reconstruction and Construction

                              (rescission)

    The Committee recommends a rescission of $30,000 in 
unobligated balances for reconstruction and construction. The 
rescission is intended to offset supplemental appropriations 
for the Department's Civil Rights Initiative.

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary

                        Payments to Air Carriers

                              (rescission)

    Prior to 1992, this account funded the essential air 
service program, which subsidized air transportation at remote 
communities. Beginning in 1992, the program was funded from the 
airport and airway trust fund. The rescission of $2,500,000 has 
no effect on the essential air service program.

                        Payments to Air Carriers

                    (Airport and Airway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $3,000,000 in contract authority provided 
for ``Small community air service'' by Public Law 101-508 for 
fiscal years prior to fiscal year 1998. These funds are in 
excess of the annual obligation limitations placed on the 
program by prior appropriations Acts. Therefore, this 
rescission has no effect on the essential air service program.

                    Federal Aviation Administration

                Facilities, Engineering, and Development

                              (Rescission)

    The bill rescinds $500,000 in unobligated balances from 
previous appropriations Acts. The FAA has proposed no plans for 
obligating these funds and such funds have remained unobligated 
for many years.

                       Grants-in-Aid for Airports

                    (Airport and Airway Trust Fund)

                 (Rescission of Contract Authorization)

    The bill rescinds $30,000,000 in unused contract authority 
for grants-in-aid for airports. These funds are in excess of 
the annual obligation limitation placed on the program by the 
fiscal year 1998 Department of Transportation and Related 
Agencies Appropriations Act and are therefore not available for 
obligation in fiscal year 1998.

                    Federal Railroad Administration

                        Conrail Labor Protection

                              (Rescission)

    The bill rescinds unobligated balances of $508,234. The 
Conrail labor protection program was established to provide 
labor protection to employees affected by the formation of 
Conrail. After Conrail was sold in 1987, no new benefits can be 
awarded. The unobligated balance of $508,234 cannot be expended 
under existing law.

                       DEPARTMENT OF THE TREASURY

           Treasury Building and Annex Repair and Restoration

                              (Rescission)

    The Committee recommends a rescission of $17,000,000 from 
funds previously appropriated for repair and restoration of the 
Treasury Building. The Committee is aware that these funds are 
not required immediately and has, therefore, rescinded them to 
provide for the Department's urgent Year 2000 needs. The 
Committee has replenished this account with an appropriation of 
funds which will not become available for obligation until 
September 1, 1998.

                     United States Customs Service

                              (Rescission)

    The Committee recommends a rescission of $6,000,000 from 
funds appropriated in fiscal year 1997 for the Automated 
Targeting System. That project was scaled back to a voluntary 
pilot program in fiscal year 1998, thereby realizing 
significant savings.

                            Internal Revenue

                   Information Technology Investments

                              (Rescission)

    The Committee recommends a rescission of $27,410,000 from 
funds appropriated in fiscal year 1998 for the Internal Revenue 
Service's Information Technology Investments program. The 
Committee wishes to make it clear that it fully supports the 
program to modernize the Internal Revenue Service's information 
systems and is only taking this action in response to the 
Department's need to address urgent Year 2000 century date 
change conversion requirements. The Committee will make every 
attempt to replenish these funds in fiscal year 1999.

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3 of rule XXI of the Rules of the House 
of Representatives, the following statements are submitted 
describing the effect of provisions in the accompanying bill 
which directly or indirectly change the application of existing 
law.
    Rescissions of previously appropriated funds have been 
included in several instances throughout the bill (see table of 
rescissions included pursuant to clause 1(b) of rule X of the 
Rules of the House ``Rescissions'').
    Language is included to provide that Food Stamp Program 
funds are available for employment and training activities 
until expended. P.L. 105-86 prohibited these funds from being 
extended beyond fiscal year 1998.
    Language is included under Department of State, 
International Organizations and Conferences, Arrearage 
Payments, that could be construed to be legislative in nature.
    Language is included under Chapter 3, General Provisions, 
providing that no fully allocated funding policy shall be 
applied to Corps of Engineers projects for which funds were 
identified in the Conference Report accompanying the Energy and 
Water Development Act, 1998, and directing the Secretary of the 
Army to undertake these projects using continuing contracts.
    Language is included under Chapter 4, Economic Support 
Fund, that could be construed to be legislative in nature.
    Language is included under Chapter 4, International 
Monetary Programs, making the funds appropriated available 
until expended.
    Language is included under Chapter 4, General Provisions, 
requiring a notification from the Secretary of the Treasury 
prior to obligation of funds for the tenth quota increase of 
the International Monetary Fund and establishing a temporary 
advisory commission on the international financial system.
    Language is included under Chapter 4, General Provision, 
that amends the Bretton Woods Agreements Act in order to 
authorize the funds appropriated in that chapter.
    Language is included under Chapter 4, General Provisions, 
that amends the International Financial Institutions Act by 
adding two new policy sections to title XV, including 14 
additional instructions by the Secretary of the Treasury to the 
United States Executive Director of the IMF, and adding three 
new reporting provisions to title XVII, providing for 
additional semiannual and annual reports, annual testimony, and 
annual General Accounting Office audits of the IMF.
    Language is included under Chapter 4, General Provisions, 
that makes the termination provision of the Federal Advisory 
Committee Act inapplicable to the proposed Advisory Committee 
on IMF Policy.
    Language is included under Department of Energy, 
Departmental Administration, providing authority to increase by 
$5,408,000 the cost of work for others program as long as the 
increased costs are offset by revenue increases of the same or 
greater amount.
    Language is included under Chapter 3, General Provisions, 
exempting the worker transition plan for the Department of 
Energy Pinellas Plant site from section 303 of Public Law 105-
62, the Energy and Water Development Appropriations Act, 1998.
    Language is included in Chapter 5 (General Provision) 
permitting diabetes funding made available to the Indian Health 
Service in Public Law 105-33 to remain available until 
expended.
    Language has been included under Department of Health and 
Human Services, Office of the Secretary, providing for a 
distribution of funds different from that required by title XX 
of the Public Health Service Act.
    Language has been included under Department of Health and 
Human Services, General Provisions, that would allow a State's 
``State Children's Health Insurance Program'' plan under title 
XXI of the Social Security Act to be approved up until 
September 30, 1999 and enable the State to still be eligible 
for its FY 1998 allotment.
    Language has been included under Department of Health and 
Human Services, General Provisions, that would limit 
obligations for Peer Review Organizations under title XI of the 
Social Security Act to not to exceed $67,400,000.
    Language has been included under the Department of the 
Treasury, Automation Enhancement account making the funds 
appropriated available until September 30, 2000, and language 
making the funds available only for Year 2000 century date 
change requirements. The Committee has also included language 
delaying the availability of a portion of the funds until 
September 1, 1998.
    Language has been included under the Treasury Building and 
Annex Repair and Restoration account making the funds 
appropriated available until expended, and language delaying 
the availability of the funds until September 1, 1998.
    Language has been included under the Financial Management 
Service Salaries and Expenses account making the funds 
appropriated available until September 30, 2000, and language 
making the funds available for Year 2000 century date change 
requirements.
    Language is included under the Environmental Protection 
Agency, state and tribal assistance grants, which clarifies 
that the eligibility requirements for grant recipients shall be 
those as contained in organic statutes of the Agency.
    Language is included under the Environmental Protection 
Agency, administrative provision, which stipulates that no 
requirements set forth in aFederal implementation plan that are 
based on the Clean Air Act prior to the 1990 amendments to this Act may 
be imposed in the State of Arizona.
    Language has been included under the National Aeronautics 
and Space Administration permitting the transfer of 
$173,000,000 from science, aeronautics and technology and 
mission support to human space flight.
    Language is included in Chapter 11 regarding a military 
construction project for which funds were appropriated in 
fiscal year 1997.

                  Compliance With Rule XIII--Clause 3

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):
    Language is included in chapter 2 which sets conditions for 
the use of quota resources of the International Monetary Fund.

BRETTON WOODS AGREEMENTS ACT

           *       *       *       *       *       *       *


  Sec. 17. (a) In order to carry out the purposes of the 
decision of January 5, 1962, [and February 24, 1983] February 
24, 1983, and January 27, 1997, as amended in accordance with 
their terms, of the Executive Directors of the International 
Monetary Fund, the Secretary of the Treasury is authorized to 
make loans, in an amount not to exceed the equivalent of 
[4,250,000,000] 6,712,000,000 Special Drawing Rights, limited 
to such amounts as are provided in advance in appropriations 
Acts, except that prior to activation, the Secretary of the 
Treasury shall certify that supplementary resources are needed 
to forestall or cope with an impairment of the international 
monetary system and that the Fund has fully explored other 
means of funding, to the Fund under article VII, section 1(i), 
of the Articles of Agreement of the Fund. Any loan under the 
authority granted in this subsection shall be made with due 
regard to the present and prospective balance of payments and 
reserve position of the United States.
  (b) For the purpose of making loans to the International 
Monetary Fund pursuant to this section, there is hereby 
authorized to be appropriated [4,250,000,000] 6,712,000,000 
Special Drawing Rights, except that prior to activation, the 
Secretary of the Treasury shall certify whether supplementary 
resources are needed to forestall or cope with an impairment of 
the international monetary system and that the Fund has fully 
explored other means of funding, to remain available until 
expended to meet calls by the International Monetary Fund. Any 
payments made to the United States by the International 
Monetary Funds as a repayment on account of the principal of a 
loan made under this section shall continue to be available for 
loans to the International Monetary Fund.

           *       *       *       *       *       *       *

  (d) Unless the Congress by law so authorizes, neither the 
President, the Secretary of the Treasury, nor any other person 
acting on behalf of the United States, may instruct the United 
States Executive Director to the Fund to consent to any 
amendment to the Decision of February 24, 1983, or the Decision 
of January 27, 1997, of the Executive Directors of the Fund, if 
the adoption of such amendment would significantly alter the 
amount, terms, or conditions of participation by the United 
States in the General Arrangements to Borrow or the New 
Arrangements to Borrow, as applicable.

           *       *       *       *       *       *       *


SEC. 61. QUOTA INCREASE.

  (a) In General.--The United States Governor of the Fund may 
consent to an increase in the quota of the United States in the 
Fund equivalent to 10,622,500,000 Special Drawing Rights.
  (b) Subject to Appropriations.--The authority provided by 
subsection (a) shall be effective only to such extent or in 
such amounts as are provided in advance in appropriations Acts.

           *       *       *       *       *       *       *

                              ----------                              


INTERNATIONAL FINANCIAL INSTITUTIONS ACT

           *       *       *       *       *       *       *


TITLE XV--OTHER POLICIES

           *       *       *       *       *       *       *


SEC. 1503. ADVOCACY OF POLICIES TO ENHANCE THE GENERAL EFFECTIVENESS OF 
                    THE INTERNATIONAL MONETARY FUND.

  (a) In General.--The Secretary of the Treasury shall instruct 
the United States Executive Director of the International 
Monetary Fund to use aggressively the voice and vote of the 
Executive Director to do the following:
          (1) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund in 
        structuring programs and assistance so as to promote 
        policies and actions that will contribute to exchange 
        rate stability and avoid competitive devaluations that 
        will further destabilize the international financial 
        and trading systems.
          (2) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund in 
        promoting market-oriented reform, trade liberalization, 
        economic growth, democratic governance, and social 
        stability through--
                  (A) appropriate liberalization of pricing, 
                trade, investment, and exchange rate regimes of 
                countries to open countries to the competitive 
                forces of the global economy;
                  (B) opening domestic markets to fair and open 
                internal competition among domestic enterprises 
                by eliminating inappropriate favoritism for 
                small or large businesses, eliminating elite 
                monopolies, creating and effectively 
                implementing anti-trust and anti-monopoly laws 
                to protect free competition, and establishing 
                fair and accessible legal procedures for 
                dispute settlement among domestic enterprises;
                  (C) privatizing industry in a fair and 
                equitable manner that provides economic 
                opportunities to a broad spectrum of the 
                population, eliminating government and elite 
                monopolies, closing loss-making enterprises, 
                and reducing government control over the 
                factors of production;
                  (D) economic deregulation by eliminating 
                inefficient and overly burdensome regulations 
                and strengthening the legal framework 
                supporting private contract and intellectual 
                property rights;
                  (E) establishing or strengthening key 
                elements of a social safety net to cushion the 
                effects on workers of unemployment and 
                dislocation; and
                  (F) encouraging the opening of markets for 
                agricultural commodities and products by 
                requiring recipient countries to make efforts 
                to reduce trade barriers.
          (3) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund, in 
        concert with appropriate international authorities and 
        other international financial institutions (as defined 
        in section 1701(c)(2)), in strengthening financial 
        systems in developing countries, and encouraging the 
        adoption of sound banking principles and practices, 
        including the development of laws and regulations that 
        will help to ensure that domestic financial 
        institutions meet strong standards regarding capital 
        reserves, regulatory oversight, and transparency.
          (4) Vigorously promote policies to increase the 
        effectiveness of the International Monetary Fund, in 
        concert with appropriate international authorities and 
        other international financial institutions (as defined 
        in section 1701(c)(2)), in facilitating the development 
        and implementation of internationally acceptable 
        domestic bankruptcy laws and regulations in developing 
        countries, including the provision of technical 
        assistance as appropriate.
          (5) Vigorously promote policies that aim at 
        appropriate burden-sharing by the private sector so 
        that investors and creditors bear more fully the 
        consequences of their decisions, and accordingly 
        advocate policies which include--
                  (A) strengthening crisis prevention and early 
                warning signals through improved and more 
                effective surveillance of the national economic 
                policies and financial market development of 
                countries (including monitoring of the 
                structure and volume of capital flows to 
                identify problematic imbalances in the inflow 
                of short and medium term investment capital, 
                potentially destabilizing inflows of offshore 
                lending and foreign investment, or problems 
                with the maturity profiles of capital to 
                provide warnings of imminent economic 
                instability), and fuller disclosure of such 
                information to market participants;
                  (B) accelerating work on strengthening 
                financial systems in emerging market economies 
                so as to reduce the risk of financial crises;
                  (C) consideration of provisions in debt 
                contracts that would foster dialogue and 
                consultation between a sovereign debtor and its 
                private creditors, and among those creditors;
                  (D) consideration of extending the scope of 
                the International Monetary Fund's policy on 
                lending to members in arrears and of other 
                policies so as to foster the dialogue and 
                consultation referred to in subparagraph (C);
                  (E) intensified consideration of mechanisms 
                to facilitate orderly workout mechanisms for 
                countries experiencing debt or liquidity 
                crises;
                  (F) consideration of establishing ad hoc or 
                formal linkages between the provision of 
                official financing to countries experiencing a 
                financial crisis and the willingness of market 
                participants to meaningfully participate in any 
                stabilization effort led by the International 
                Monetary Fund;
                  (G) using the International Monetary Fund to 
                facilitate discussions between debtors and 
                private creditors to help ensure that financial 
                difficulties are resolved without inappropriate 
                resort to public resources; and
                  (H) the International Monetary Fund 
                accompanying the provision of funding to 
                countries experiencing a financial crisis 
                resulting from imprudent borrowing with efforts 
                to achieve a significant contribution by the 
                private creditors, investors, and banks which 
                had extended such credits.
          (6) Vigorously promote policies that would make the 
        International Monetary Fund a more effective mechanism, 
        in concert with appropriate international authorities 
        and other international financial institutions (as 
        defined in section 1701(c)(2)), for promoting good 
        governance principles within recipient countries by 
        fostering structural reforms, including procurement 
        reform, that reduce opportunities for corruption and 
        bribery, and drug-related money laundering.
          (7) Vigorously promote the design of International 
        Monetary Fund programs and assistance so that 
        governments that draw on the International Monetary 
        Fund channel public funds away from unproductive 
        purposes, including large ``show case'' projects and 
        excessive military spending, and toward investment in 
        human and physical capital as well as social programs 
        to protect the neediest and promote social equity.
          (8) Work with the International Monetary Fund to 
        foster economic prescriptions that are appropriate to 
        the individual economic circumstances of each recipient 
        country, recognizing that inappropriate stabilization 
        programs may only serve to further destabilize the 
        economy and create unnecessary economic, social, and 
        political dislocation.
          (9) Structure International Monetary Fund programs 
        and assistance so that the maintenance and improvement 
        of core labor standards are routinely incorporated as 
        an integral goal in the policy dialogue with recipient 
        countries, so that--
                  (A) recipient governments commit to affording 
                workers the right to exercise internationally 
                recognized core worker rights, including the 
                right of free association and collective 
                bargaining through unions of their own 
                choosing;
                  (B) measures designed to facilitate labor 
                market flexibility are consistent with such 
                core worker rights; and
                  (C) the staff of the International Monetary 
                Fund surveys the labor market policies and 
                practices of recipient countries and recommends 
                policy initiatives that will help to ensure the 
                maintenance or improvement of core labor 
                standards.
          (10) Vigorously promote International Monetary Fund 
        programs and assistance that are structured to the 
        maximum extent feasible to discourage practices which 
        may promote ethnic or social strife in a recipient 
        country.
          (11) Vigorously promote recognition by the 
        International Monetary Fund that macroeconomic 
        developments and policies can affect and be affected by 
        environmental conditions and policies, and urge the 
        International Monetary Fund to encourage member 
        countries to pursue macroeconomic stability while 
        promoting environmental protection.
          (12) Facilitate greater International Monetary Fund 
        transparency, including by enhancing accessibility of 
        the International Monetary Fund and its staff, 
        fostering a more open release policy toward working 
        papers, past evaluations, and other International 
        Monetary Fund documents, seeking to publish all Letters 
        of Intent to the International Monetary Fund and Policy 
        Framework Papers, and establishing a more open release 
        policy regarding Article IV consultations.
          (13) Facilitate greater International Monetary Fund 
        accountability and enhance International Monetary Fund 
        self-evaluation by vigorously promoting review of the 
        effectiveness of the Office of Internal Audit and 
        Inspection and the Executive Board's external 
        evaluation pilot program and, if necessary, the 
        establishment of an operations evaluation department 
        modeled on the experience of the International Bank for 
        Reconstruction and Development, guided by such key 
        principles as usefulness, credibility, transparency, 
        and independence.
          (14) Vigorously promote coordination with the 
        International Bank for Reconstruction and Development 
        and other international financial institutions (as 
        defined in section 1701(c)(2)) in promoting structural 
        reforms which facilitate the provision of credit to 
        small businesses, including microenterprise lending, 
        especially in the world's poorest, heavily indebted 
        countries.
  (b) Coordination With Other Executive Departments.--To the 
extent that it would assist in achieving the goals described in 
subsection (a), the Secretary of the Treasury shall pursue the 
goals in coordination with the Secretary of State, the 
Secretary of Labor, the Secretary of Commerce, the 
Administrator of the Environmental Protection Agency, the 
Administrator of the Agency for International Development, and 
the United States Trade Representative.

SEC. 1504. DENIAL OF FEDERAL FUNDS TO THE INTERNATIONAL MONETARY FUND 
                    IF ITS OPERATIONS ARE NOT MADE MORE TRANSPARENT.

  (a) In General.--Beginning 6 months after the date of the 
enactment of this section, an officer, employee, or agent of 
the United States may not, directly or indirectly, provide 
Federal funds to, or for the benefit of, the International 
Monetary Fund unless there is in effect a written 
certification, made by the Secretary of the Treasury to the 
Committee on Banking and Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, that the International Monetary 
Fund has met the requirements of subsection (b).
  (b) Requirements.--The requirements of this subsection are 
the following:
          (1) Within 3 months after any meeting of the Board of 
        Governors or the Executive Board of the International 
        Monetary Fund, an edited copy of the minutes of the 
        meeting shall be made available for public inspection, 
        with the following information redacted:
                  (A) Information which, if released, would 
                adversely affect the national security of a 
                country, and which is of the type that would be 
                classified by United States Government.
                  (B) Information which, if released, would 
                disrupt markets.
                  (C) Proprietary information.
          (2) Within 3 months after staff of the International 
        Monetary Fund makes a written review or assessment of 
        any proposed or ongoing loan program of the 
        International Monetary Fund, a copy of the review or 
        assessment shall be made available for public 
        inspection, with the following information redacted:
                  (A) Information which, if released, would 
                adversely affect the national security of a 
                country, and which is of the type that would be 
                classified by United States Government.
                  (B) Information which, if released, would 
                disrupt markets.
                  (C) Proprietary information.
  (c) Effective Period of Certification.--
          (1) In general.--A certification made under this 
        section shall cease to be in effect 1 year after the 
        date the certification is made.
          (2) Revocation.--
                  (A) In general.--A certification made under 
                this section shall cease to be in effect if the 
                Secretary of the Treasury revokes the 
                certification.
                  (B) Cause for revocation.--The Secretary of 
                the Treasury shall revoke a certification made 
                under this section if the Secretary of the 
                Treasury is made aware that the International 
                Monetary Fund has ceased to meet a requirement 
                of subsection (b).

           *       *       *       *       *       *       *


            TITLE XVII--CONSOLIDATED REPORTING REQUIREMENTS

SEC. 1701. ANNUAL REPORT BY CHAIRMAN OF THE NATIONAL ADVISORY COUNCIL 
                    ON INTERNATIONAL MONETARY AND FINANCIAL POLICIES.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Advisory Committee on IMF Policy.--
          (1) In general.--The Secretary of the Treasury shall 
        establish an International Monetary Fund Advisory 
        Committee (in this subsection referred to as the 
        ``Advisory Committee'').
          (2) Membership.--The Advisory Committee shall consist 
        of 9 members appointed by the Secretary of the 
        Treasury, after appropriate consultations with the 
        relevant organizations, as follows:
                  (A) 1 member shall be a former Secretary or 
                Deputy Secretary of the Treasury, who shall 
                serve as the chairman of the Advisory 
                Committee.
                  (B) 2 members shall be representatives from 
                organized labor.
                  (C) 2 members shall be representatives from 
                banking and financial services.
                  (D) 2 members shall be representatives from 
                industry and agriculture.
                  (E) 2 members shall be representatives from 
                nongovernmental environmental and human rights 
                organizations.
          (3) Duties.--Not less frequently than every 6 months, 
        the Advisory Committee shall meet with the Secretary of 
        the Treasury or the Deputy Secretary of the Treasury to 
        review, and provide advice on, the extent to which 
        individual country International Monetary Fund programs 
        meet the policy goals set forth in this Act regarding 
        the International Monetary Fund.
          (4) Inapplicability of termination provision of the 
        federal advisory committee act.--Section 14(a)(2) of 
        the Federal Advisory Committee Act shall not apply to 
        the Advisory Committee.

           *       *       *       *       *       *       *


SEC. 1704. REPORTS ON FINANCIAL STABILIZATION PROGRAMS LED BY THE 
                    INTERNATIONAL MONETARY FUND IN CONNECTION WITH 
                    FINANCING FROM THE EXCHANGE STABILIZATION FUND.

  (a) In General.--The Secretary of the Treasury, in 
consultation with the Secretary of Commerce and other 
appropriate Federal agencies, shall prepare reports on the 
implementation of financial stabilization programs (and any 
material terms and conditions thereof) led by the International 
Monetary Fund in countries in connection with which the United 
States has made a commitment to provide, or has provided 
financing from the stabilization fund established under section 
5302 of title 31, United States Code. The reports shall include 
the following:
          (1) A description of the condition of the economies 
        of countries requiring the financial stabilization 
        programs, including the monetary, fiscal, and exchange 
        rate policies of the countries.
          (2) A description of the degree to which the 
        countries requiring the financial stabilization 
        programs have fully implemented financial sector 
        restructuring and reform measures required by the 
        International Monetary Fund, including--
                  (A) ensuring full respect for the commercial 
                orientation of commercial bank lending;
                  (B) ensuring that governments will not 
                intervene in bank management and lending 
                decisions (except in regard to prudential 
                supervision);
                  (C) the enactment and implementation of 
                appropriate financial reform legislation;
                  (D) strengthening the domestic financial 
                system and improving transparency and 
                supervision; and
                  (E) the opening of domestic capital markets.
          (3) A description of the degree to which the 
        countries requiring the financial stabilization 
        programs have fully implemented reforms required by the 
        International Monetary Fund that are directed at 
        corporate governance and corporate structure, 
        including--
                  (A) making nontransparent conglomerate 
                practices more transparent through the 
                application of internationally accepted 
                accounting practices, independent external 
                audits, full disclosure, and provision of 
                consolidated statements; and
                  (B) ensuring that no government subsidized 
                support or tax privileges will be provided to 
                bail out individual corporations, particularly 
                in the semiconductor, steel, and paper 
                industries.
          (4) A description of the implementation of reform 
        measures required by the International Monetary Fund to 
        deregulate and privatize economic activity by ending 
        domestic monopolies, undertaking trade liberalization, 
        and opening up restricted areas of the economy to 
        foreign investment and competition.
          (5) A detailed description of the trade policies of 
        the countries, including any unfair trade practices or 
        adverse effects of the trade policies on the United 
        States.
          (6) A description of the extent to which the 
        financial stabilization programs have resulted in 
        appropriate burden-sharing among private sector 
        creditors, including rescheduling of outstanding loans 
        by lengthening maturities, agreements on debt 
        reduction, and the extension of new credit.
          (7) A description of the extent to which the economic 
        adjustment policies of the International Monetary Fund 
        and the policies of the government of the country 
        adequately balance the need for financial 
        stabilization, economic growth, environmental 
        protection, social stability, and equity for all 
        elements of the society.
          (8) Whether International Monetary Fund involvement 
        in labor market flexibility measures has had a negative 
        effect on core worker rights, particularly the rights 
        of free association and collective bargaining.
          (9) A description of any pattern of abuses of core 
        worker rights in recipient countries.
          (10) The amount, rate of interest, and disbursement 
        and repayment schedules of any funds disbursed from the 
        stabilization fund established under section 5302 of 
        title 31, United States Code, in the form of loans, 
        credits, guarantees, or swaps, in support of the 
        financial stabilization programs.
          (11) The amount, rate of interest, and disbursement 
        and repayment schedules of any funds disbursed by the 
        International Monetary Fund to the countries in support 
        of the financial stabilization programs.
  (b) Timing.--Not later than October 1, 1998, and semiannually 
thereafter, the Secretary of the Treasury shall submit to the 
Committees on Banking and Financial Services and International 
Relations of the House of Representatives and the Committees on 
Foreign Relations, and Banking, Housing, and Urban Affairs of 
the Senate a report on the matters described in subsection (a).

SEC. 1705. ANNUAL REPORT AND TESTIMONY ON THE STATE OF THE 
                    INTERNATIONAL FINANCIAL SYSTEM, IMF REFORM, AND 
                    COMPLIANCE WITH IMF AGREEMENTS.

  (a) Reports.--Not later than October 1 of each year, the 
Secretary of the Treasury shall submit to the Committee on 
Banking and Financial Services of the House of Representatives 
and the Committee on Foreign Relations of the Senate a written 
report onthe progress (if any) made by the United States 
Executive Director at the International Monetary Fund in influencing 
the International Monetary Fund to adopt the policies and reform its 
internal procedures in the manner described in section 1503.
  (b) Testimony.--After submitting the report required by 
subsection (a) but not later than October 31 of each year, the 
Secretary of the Treasury shall appear before the Committee on 
Banking and Financial Services of the House of Representatives 
and the Committee on Foreign Relations of the Senate and 
present testimony on--
          (1) any progress made in reforming the International 
        Monetary Fund;
          (2) the status of efforts to reform the international 
        financial system; and
          (3) the compliance of countries which have received 
        assistance from the International Monetary Fund with 
        agreements made as a condition of receiving the 
        assistance.

SEC. 1706. AUDITS OF THE INTERNATIONAL MONETARY FUND.

  (a) Access to Materials.--Not later than 30 days after the 
date of the enactment of this section, the Secretary of the 
Treasury shall certify to the Committee on Banking and 
Financial Services of the House of Representatives and the 
Committee on Foreign Relations of the Senate that the Secretary 
has instructed the United States Executive Director at the 
International Monetary Fund to facilitate timely access by the 
General Accounting Office to information and documents of the 
International Monetary Fund needed by the Office to perform 
financial reviews of the International Monetary Fund that will 
facilitate the conduct of United States policy with respect to 
the Fund.
  (b) Reports.--Not later than June 30, 1999, and annually 
thereafter, the Comptroller General of the United States shall 
prepare and submit to the committees specified in subsection 
(a) a report on the financial operations of the Fund during the 
preceding year, which shall include--
          (1) the current financial condition of the 
        International Monetary Fund;
          (2) the amount, rate of interest, disbursement 
        schedule, and repayment schedule for any loans that 
        were initiated or outstanding during the preceding 
        calendar year, and with respect to disbursement 
        schedules, the report shall identify and discuss in 
        detail any conditions required to be fulfilled by a 
        borrower country before a disbursement is made;
          (3) a detailed description of whether the trade 
        policies of borrower countries permit free and open 
        trade by the United States and other foreign countries 
        in the borrower countries;
          (4) a detailed description of the export policies of 
        borrower countries and whether the policies may result 
        in increased export of their products, goods, or 
        services to the United States which may have 
        significant adverse effects on, or result in unfair 
        trade practices against or affecting United States 
        companies, farmers, or communities;
          (5) a detailed description of any conditions of 
        International Monetary Fund loans which have not been 
        met by borrower countries, including a discussion of 
        the reasons why such conditions were not met, and the 
        actions taken by the International Monetary Fund due to 
        the borrower country's noncompliance;
          (6) an identification of any borrower country and 
        loan on which any loan terms or conditions were 
        renegotiated in the preceding calendar year, including 
        a discussion of the reasons for the renegotiation and 
        any new loan terms and conditions; and
          (7) a specification of the total number of loans made 
        by the International Monetary Fund from its inception 
        through the end of the period covered by the report, 
        the number and percentage (by number) of such loans 
        that are in default or arrears, and the identity of the 
        countries in default or arrears, and the number of such 
        loans that are outstanding as of the end of period 
        covered by the report and the aggregate amount of the 
        outstanding loans and the average yield (weighted by 
        loan principal) of the historical and outstanding loan 
        portfolios of the International Monetary Fund.

           *       *       *       *       *       *       *

    Language is included in the Interior Chapter in which 
section 330C(c) of subpart I of part D of title III of the 
Public Health Service Act (42 U.S.C. 254b et seq.) as amended 
by section 4922 of Public Law 105-33, is further amended as 
follows:

         (c) Funding.--Notwithstanding section 2104(a) of the 
        Social Security Act, from the amounts appropriated in 
        such section for each of fiscal years 1998 through 
        2002, $30,000,000, to remain available until expended, 
        is hereby transferred and made available in such fiscal 
        year for grants under this section.

    Language included in Chapter 6 would amend the Departments 
of Labor, Health and Human Services, and Education, and Related 
Agencies Appropriations Act, 1998, as follows:

  DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND 
      RELATED AGENCIES APPROPRIATIONS ACT, 1998 (Pub. Law 105-78)

          * * * * *

                               TITLE III

          * * * * *

                        DEPARTMENT OF EDUCATION

          * * * * *

                           Special Education

    For carrying out the Individuals with Disabilities 
Education Act, $4,810,646,000, of which $4,565,185,000 shall 
become available for obligation on July 1, 1998, and shall 
remain available through September 30, 1999: Provided, That 
$1,500,000 of the funds provided shall be for section 
687(b)(2)(G), and shall remain available until expended: 
Provided further, That $600,000 of the funds provided shall be 
for the Early Childhood Development Project of the Easter Seal 
Society for the Mississippi River Delta Region.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3 of rule XXI of the Rules of the House 
of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                       department of agriculture

    Office of the Secretary for expenses to compensate 
producers for quarantine related to karnal bunt.

                          Department of State

    International Organizations and Conferences, Arrearage 
Payments

                    international monetary programs

    Loans to International Monetary Fund
    United States Quota, International Monetary Fund

                        House of Representatives

    Death gratuities for two deceased Members of Congress.

                       Department of the Treasury

    Automation Enhancement
    Treasury Building and Annex Repair and Restoration
    Financial Management Service

                           Transfer of Funds

    Pursuant to clause 1(b) of rule X of the Rules of the House 
of Representatives, the following is submitted describing the 
transfer of funds provided in the accompanying bill.
    The following table shows the appropriations affected by 
the transfers:

----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is                 
    Account to which transfer is to be made         Amount                 to be made                 Amount    
----------------------------------------------------------------------------------------------------------------
Dept of the Interior, Office of Surface Mining      $3,163,000  Dept of the Interior, Office of       $3,163,000
 Reclamation & Enforcement: Abandoned Mine                       Surface Mining Reclamation &                   
 Reclamation Fund.                                               Enforcement: Regulation and                    
                                                                 Technology.                                    
----------------------------------------------------------------------------------------------------------------

    Language has been included under the National Aeronautics 
and Space Administration permitting the transfer of 
$173,000,000 from science, aeronautics and technology and 
mission support to human space flight.

                              RESCISSIONS

    Pursuant to clause 1(b) of rule X of the Rules of the House 
of Representatives, the following table is submitted describing 
the rescissions recommended in the accompanying bill:

                  RESCISSIONS RECOMMENDED IN THE BILL

                                                                 Amounts
                                                             recommended
        Department and activity                           for rescission
Agricultural Research Service...........................        $223,000
Animal and Plant Health Inspection Service..............         350,000
Agricultural Marketing Service..........................          25,000
Grain Inspection, Packers and Stockyards Administration.          38,000
Food Safety and Inspection Service......................         502,000
Farm Service Agency.....................................       1,080,000
Agricultural Credit Insurance Fund......................       6,737,000
Natural Resources Conservation Service..................         378,000
Rural Housing Service...................................         846,000
Food and Nutrition Service..............................         114,000
Department of the Interior:
    Bureau of Land Management, Management of Lands and 
      Resources.........................................       1,188,000
    Bureau of Land Management, Oregon and California 
      Grant Lands.......................................       2,500,000
    United States Fish and Wildlife Service, Resource 
      Management........................................         250,000
    United States Fish and Wildlife Service, 
      Construction......................................       1,188,000
    National Park Service, Construction.................       1,638,000
    Bureau of Mines, Mines and Minerals.................       1,605,000
    Bureau of Indian Affairs, Construction..............         737,000
Department of Agriculture:
    Forest Service, Forest and Rangeland Research.......         148,000
    Forest Service, State and Private Forestry..........          59,000
    Forest Service, National Forest System..............       1,094,000
    Forest Service, Wildland Fire Management............         148,000
    Forest Service, Reconstruction and Construction.....          30,000
Department of Transportation:
    Office of the Secretary, Payments to air carriers...       2,500,000
    Office of the Secretary, Payments to air carriers 
      (Airport and Airway Trust Fund)...................       3,000,000
    Federal Aviation Administration, Facilities, 
      engineering, and development......................         500,000
    Federal Aviation Administration, Grants-in-aid for 
      airports (Airport and Airway Trust Fund)..........      30,000,000
    Federal Railroad Administration, Conrail labor 
      protection........................................         508,234
Department of the Treasury:
    Treasury Building and Annex Repair and Restoration..      17,000,000
    United States Customs Service.......................       6,000,000
    Internal Revenue Service, Information Technology 
      Investments.......................................      27,410,000

                 Comparison With the Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 302 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. All discretionary 
budget authority provided in the accompanying bill is offset 
therein or will generate an increase in the allocation in 
accordance with the most recently agreed to concurrent 
resolution on the budget.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:

                             [In thousands]                             
                                                                        
                                                                        
                                                                        
Budget Authority......................................            18,414
Outlays:                                                                
    Fiscal year 1998..................................               353
    Fiscal year 1999..................................               448
    Fiscal year 2000..................................                56
    Fiscal year 2001..................................                -8
    Fiscal year 2002 and future years.................                -2
                                                                        

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments is as follows:

                              [In millions]                             
                                                                        
                                                                        
                                                                        
New budget authority..................................               -30
Fiscal year 1998 outlays resulting therefrom..........                -1
                                                                        

                        Constitutional Authority

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each rollcall 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 1

    Date: March 24, 1998.
    Measure: Making Supplemental Appropriations and Rescissions 
for Fiscal Year 1998.
    Motion by: Mr. Obey.
    Description of Motion: To amend conditions on the use of 
funding for the International Monetary Fund (IMF) to conform 
with authorization bill.
    Results: Rejected 25 yeas to 29 nays.
        Members Voting Yea            Members Voting Nay
Mr. Cramer                          Mr. Aderholt
Ms. DeLauro                         Mr. Bonilla
Mr. Dicks                           Mr. Cunningham
Mr. Dixon                           Mr. Dickey
Mr. Edwards                         Mr. Forbes
Mr. Fazio                           Mr. Frelinghuysen
Mr. Hefner                          Mr. Hobson
Miss. Kaptur                        Mr. Istook
Mrs. Lowey                          Mr. Knollenberg
Mrs. Meek                           Mr. Kolbe
Mr. Mollohan                        Mr. Latham
Mr. Moran                           Mr. Lewis
Mr. Murtha                          Mr. Livingston
Mr. Obey                            Mr. McDade
Mr. Olver                           Mr. Miller
Mr. Pastor                          Mr. Nethercutt
Ms. Pelosi                          Mr. Neumann
Mr. Price                           Mrs. Northup
Mr. Sabo                            Mr. Packard
Mr. Serrano                         Mr. Porter
Mr. Skaggs                          Mr. Regula
Mr. Stokes                          Mr. Rogers
Mr. Torres                          Mr. Skeen
Mr. Wolf                            Mr. Taylor
Mr. Yates                           Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Young

                             rollcall no. 2

    Date: March 24, 1998.
    Measure: Making Supplemental Appropriations and Rescissions 
for Fiscal Year 1998.
    Motion by: Mr. Obey.
    Description of Motion: To increase funding for arrearages 
for the United Nations and to conform the UN reforms with 
authorization bill.
    Results: Rejected 25 yeas to 30 nays.
        Members Voting Yea            Members Voting Nay
Mr. Cramer                          Mr. Aderholt
Ms. DeLauro                         Mr. Bonilla
Mr. Dicks                           Mr. Cunningham
Mr. Dixon                           Mr. DeLay
Mr. Edwards                         Mr. Dickey
Mr. Fazio                           Mr. Forbes
Mr. Hefner                          Mr. Frelinghuysen
Miss. Kaptur                        Mr. Hobson
Mrs. Lowey                          Mr. Knollenberg
Mrs. Meek                           Mr. Kolbe
Mr. Mollohan                        Mr. Latham
Mr. Moran                           Mr. Lewis
Mr. Murtha                          Mr. Livingston
Mr. Obey                            Mr. McDade
Mr. Olver                           Mr. Miller
Mr. Pastor                          Mr. Nethercutt
Ms. Pelosi                          Mr. Neumann
Mr. Price                           Mrs. Northup
Mr. Sabo                            Mr. Packard
Mr. Serrano                         Mr. Porter
Mr. Skaggs                          Mr. Regula
Mr. Stokes                          Mr. Rogers
Mr. Torres                          Mr. Skeen
Mr. Visclosky                       Mr. Taylor
Mr. Yates                           Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
      
    
    

                  DISSENTING VIEWS OF HON. DAVID OBEY

    This supplemental appropriation bill contains two items 
that are urgently needed to protect U.S. economic, military and 
political interests around the world. First, funds are provided 
that will allow the United States to make an additional deposit 
in the International Monetary Fund permitting that organization 
to deal with the recent spate of currency crises in Asia and 
manage similar crises in other parts of the world when they 
erupt. Second, it contains part of the money needed to pay the 
U.S. arrearages to the United Nations, allow U.S. 
representatives in that organization to negotiate the reforms 
mandated by Congress and return the U.S. to a position of good 
standing within the organization. In addition, the bill 
contains the funds that are necessary to provide U.S. veterans 
the full benefits due under existing mandatory spending 
authority.
    Unfortunately, the Republican leadership of the House has 
made two tactical decisions which will delay consideration of 
this legislation and significantly reduce the prospects that 
these funds will be available when needed. First, they have 
decided to separate this bill from a second appropriation act 
containing supplemental funding for U.S. troops serving 
overseas in Bosnia and the Persian Gulf as well as funds for 
dealing with natural disasters which have afflicted more than 
16 states here at home since the first of the year. In our 
opinion the separation of the President's supplemental requests 
into two packages weakens both. But more importantly, it 
significantly delays consideration of this bill since only the 
military and disaster funding legislation will be scheduled for 
floor consideration before the Congress recesses for twenty 
days in April.
    Secondly, the leadership has decided to permit an amendment 
to be offered to this supplemental that will place a 
restriction on the activities of organizations that receive 
U.S. international family planning funds despite the fact that 
no such funds are contained in this legislation. The apparent 
reason for this decision is the recognition that the funds in 
this bill are critically needed and will therefore provide the 
House members seeking this change in family planning policy 
with unusually powerful leverage to overcome their opponents on 
the family planning issue.
    Both of these decisions are highly irresponsible. They 
place the American people at serious risk in two of the most 
dangerous crises in this decade. We believe the House should 
act to overturn these decisions, reattaching this bill to the 
one to be considered before the April recess and not permitting 
extraneous and nongermane controversies to be injected into the 
debate.

                background on the asian financial crisis

    Nearly a year ago international financial markets began to 
become nervous over the health of Thailand's economy. Thailand 
did not suffer from the problems that have plagued most 
developing economies. The budget of the Thai government had 
consistently been in or near balance. Inflation remained quite 
low as did unemployment.
    The private sector in Thailand, however, had borrowed 
extensively to finance a wide range of economic activities 
ranging from new manufacturing facilities to high rise office 
and apartment complexes. Much of the money being borrowed was 
foreign, the loans were denominated in foreign currencies and 
the terms of the loans ranged from a few months to no more than 
a few years. None of this would have been problematic had the 
Thai economy continued its rapid growth pace and the Thai 
currency remained stable. But as the U.S. dollar strengthened 
against other world currencies in the mid 1990s, the Thai baht 
which was pegged at 25 to the dollar strengthened as well, and 
Thai labor became too expensive relative to other labor in the 
developing world, particularly in China. Exports had ceased to 
grow and by 1996 the country had developed a large trade 
deficit.
    By mid-May of 1997, savvy currency speculators began to 
realize that the foreign reserves held by Thai banks and 
businesses would be inadequate to cover repayment of the 
nation's private sector loans. They further recognized that the 
only plausible means of reversing the downward spiral in 
nation's trade deficit and continued loss of foreign currency 
was devaluation of the baht. The Central Bank and the 
Government were both slow in recognizing that the currency 
could not be supported but by the end of June the Bank of 
Thailand was forced to surrender and allow currency to float 
against other world currencies. It immediately fell by more 
than 20%, and by last fall it had fallen by more than 100%.
    The economic devastation and destruction of personal wealth 
has by any standard been extraordinary. Of the 77 Thai finance 
companies that existed a year ago, 58 have been closed, the 
employees fired and the remaining assets seized. The owners 
have lost 100% of their equity. Most of the remaining finance 
companies are deeply troubled as are the majority of Thai 
banks. There are literally dozens of partially completed 
skyscrapers across the Bangkok skyline. They can not be 
occupied and there are no funds for completion. All work has 
ceased and it is doubtful whether it will resume in the near 
future or perhaps even at all. Virtually all companies in the 
construction sector are a complete loss. Manufacturers are also 
reeling under the burden of foreign debt and from a lack of 
liquidity to purchase the imports necessary to their production 
process. Since their sales are denominated in baht and their 
debt in Yen, Dollars and Marks, the size of their debts in 
local currency have nearly doubled and their major customer, 
the Thai consumer, has all but left the market place. Despite 
the decline in the currency and the cost of Thai made products, 
manufactured exports had actually declined by late 1997 and 
early 1998. Even agricultural production is expected to fall 
because of the lack of the foreign currency needed to purchase 
fertilizers and insecticides.
    The same process which began in Thailand in May struck the 
Philippines only a few weeks later and Malaysia and Hong Kong 
shortly after that. Eventually Indonesia and Korea were also 
hit. Japan appears to be wobbling under the weight of its own 
serious banking crisis, made worse by the massive losses its 
banks and other lenders willeventually suffer in Thailand and 
the other developing Asian economies. China is struggling with the 
prospect of a dramatic decrease in economic growth brought about by the 
loss of major markets for its own exports and having to compete against 
wages in the rest of Asia that are suddenly lower than Chinese wages.

                      impact on the united states

    This crisis threatens the United States in a number of 
important ways. Asia has been an important U.S. market, 
particularly for agricultural and high tech products. Certain 
categories of U.S. producers will suffer significant losses in 
sales and will be forced to reduce employment. More troubling 
is the prospect that various international corporations will 
seize upon the continued weakness of these currencies and began 
massive relocation of manufacturing capacity to certain parts 
of Asia for the purpose of exporting the U.S. market. This 
could have a devastating effect on the U.S. trade deficit, on 
U.S.-based manufacturing and on manufacturing employment in the 
U.S. Also troubling is the prospect that some of these 
economies will continue to deteriorate, that economic turmoil 
will be followed by political turmoil, civil strife and 
starvation--creating massive refugee, security and human rights 
problems which the United States will be forced to contend 
with.
    Finally, the most frightening prospect is the possibility 
that what has happened in Asia may spread to other countries 
with high levels of foreign debt and little in the way of 
foreign reserves. Countries about which these concerns have 
been raised include Turkey, Brazil, India, Ukraine and Russia. 
The prospect of such massive economic instability striking a 
country with vast stores of weapons of mass destruction is 
particularly disturbing.

         what steps can be taken to protect american interests

    The United States faces a number of options. One is to do 
nothing and hope that the crisis doesn't spread, that the 
affected nations institute the necessary reforms on their own 
and that when these nations eventually raise the liquidity they 
need to rejoin the world economy they will have somehow already 
increased their wage levels so as to not significantly threaten 
U.S. workers and producers. Another choice would be for the 
United States to unilaterally provide direction and assistance 
in the efforts of the countries to restore their credit 
worthiness. An important downside to that option is that it 
costs about 4 times as much to go it alone. The third approach 
is find a way to get other countries to share the burden. That 
is essentially the approach represented by the IMF.
    The problem is the Asian crisis has greatly depleted the 
lending resources available to the IMF. When the country 
agreements that are already in effect are fully implemented, 
the IMF will have only $45 billion in lending authority left. 
Approximately $30 billion of that amount has to be held in 
reserve for drawing rights by member countries, leaving only 
$15 billion in current usable lending authority. That is down 
from the $45 billion that was available less than two years 
ago.
    The possibility that is most frightening to international 
economist and financial experts is that sudden instability in a 
single additional country could use up all available lending 
resources--leaving the IMF with no funds to intervene in the 
event of additional crises. For half a century world financial 
markets have counted on the IMF to serve as a safety valve in 
preventing total economic meltdowns. The knowledge that the IMF 
no longer has sufficient resources to perform that role could 
of its own accord precipitate a rapid withdrawal of capital 
from developing countries around the globe and generate 
currency crises identical to the ones which have occurred in 
Asia. That in turn could have a devastating impact on our own 
equity markets. As Senator Stevens told the other body last 
Thursday, ``I saw the report that the Dow is about to hit 9000. 
If we do not act, as has been proposed in the IMF, the country 
better get ready for a slide. . .''
    The funds which have been requested would be deposited by 
the United States in our account in the International Monetary 
Fund. The United States would be entitled to draw from that 
account, the same as a family can draw funds from its banking 
account. It would not actually cost the United States money and 
it should not result in any increase in the deficit. But it 
would provide the Fund with the resources to make prudent loans 
to countries that are willing to take the necessary steps to 
demonstrate credit worthiness and the capacity to repay. The 
replenishments contained in this bill will create $81 billion 
in new usable lending authority on top of the $15 billion that 
is now available. That should not only be enough to deal with 
the foreseeable needs of problem countries but also enough to 
assure financial markets that the IMF is capable of acting 
whenever and wherever it is necessary.
    This should be an obvious choice for responsible 
legislators in either party. It was agreed to in the Senate, 
where the IMF measure was attached to the Emergency Disaster 
and Military supplemental by a vote of 84 to 16. The House 
should do no less in its consideration to this legislation.

                   paying our back bills at the u.n.

    The bill also contains funding of $505,000,000 for United 
States arrearages to the United Nations. More than $500,000,000 
less than the amount requested and more than $400,000,000 below 
the amount contained in the authorization which just passed the 
House. The funding in this bill is also $500,000,000 below the 
amount agreed to in last years bi-partisan budget agreement. 
The funds are provided subject to authorization, and in 
addition cannot be obligated until the United State's regular 
U.N. dues are reduced to 22% and the contribution for 
peacekeeping operations is cut to 25%.
    The Committee rejected an amendment, which would have 
restored funding to the $929,000,000 level contained in the 
authorization.
    Like the funding provided for the International Monetary 
Fund, the U.N. monies have been cosigned to this bill which is 
not slated for House Floor action before late April at the 
earliest. Further, the House Leadership has indicated that they 
will attach the controversial family planning language to that 
legislation.
    Failure to fund the full request, delay the possible 
enactment of this legislation and complicate its prospects by 
injection of the family planning issues, is shortsighted and 
destructive for two basic reasons.
    First, it undercuts the ability of our representatives to 
negotiate lower contribution levels. Had the requested 
contribution for the U.N. been enacted last fall, it would have 
provided the basis for negotiating a reduction in the U.S. 
share of U.N. expenses from 25% to 22%. Failure by the Congress 
to provide that money in a timely manner has already cost U.S. 
taxpayers $100,000,000. This continued quibbling by the 
Congress over the amounts and conditions of these funds, 
further undercuts the ongoing efforts of our negotiators to 
reduce U.S. contributions and achieve the institutional reforms 
sought by this committee and the Congress.
    Second, the United Nations has played a pivotal role in the 
resolution of each of the recent crises with Saddam Hussein. 
Our failure to maintain our national good standing in paying 
the dues we owe to the U.N. complicates the work of our 
representatives before that organization on numerous fronts. 
These certainly include our capacity to build the strongest 
possible consensus among our allies for a tough minded policy 
to insure the destruction of Saddam's capacity to build 
chemical, biological and nuclear weapons. Building that 
consensus not only affects the actions of the U.N. with respect 
to the Gulf but also affects our ability to negotiate bilateral 
agreements such as base rights in the regions that impact the 
effectiveness of our military response and the safety of our 
troops in making that response. Given the significant sums we 
are paying to insure the effectiveness of our military actions 
in terms of equipment and personnel it is certainly had to 
explain why we would undercut our diplomatic and political 
efforts by failing to provide the amounts included in the 
president's request.

                     Explanation of Rollcall Votes

    Two amendments to this bill were decided by rollcall votes 
in full committee.
    Rollcall No. 1--IMF Restrictions and Conditions: The first 
amendment, Rollcall No. 1 offered by Mr. Obey, would have 
replaced language restricting US participation in the 
International Monetary Fund, to conform with a bi-partisan bill 
reported from the Committee on Banking and Financial Services 
(HR 3114), that has the authorizing jurisdiction over the IMF. 
The authorizing bill had overwhelming bipartisan support in the 
authorizing committee, and is supported by the Administration.
    The proposed language in the Obey Amendment would have 
allowed the US to contribute to the General Capital Increase of 
the IMF while reforms were being carried out, instead of 
requiring certification on a number of reforms prior to 
releasing the funds. Language in the base committee bill is 
unacceptable to the Administration since it could delay the 
timely release of
    The amendment was rejected, 25 to 29.
    Rollcall No. 1--UN Dues Owed By The United States: The 
second amendment, Rollcall No. 2 also offered by Mr. Obey, 
would have raised the amount of funds appropriated for UN dues 
from $505 million to $719 million.
    This would have allowed payment of arrears for the UN and 
affiliated agencies up to the level previously voted on the 
adopted by the House, but was still $95 million below the level 
requested by the President.
    The amendment was defeated 25 to 30.
    Votes of individual Members on these amendments are listed 
in this report immediately preceding this section and the 
summary budget table.

                                                         Dave Obey.