Statement of Administration Policy: H.R. 2494 - International Development and Finance Act of 1989

(House)
(Fauntroy (D) DC and Leach (R) Iowa)

The Administration supports House passage of H.R. 2494, with adoption of the Banking Committee amendment, but will seek changes to the bill during its further consideration by Congress. Specifically, the Administration will work to eliminate or modify objectionable provisions that:

• (1) direct the U.S. vote in meetings of various multilateral development banks (MDBs), and
• (2) require the Secretary of the Treasury to consult with congressional committees before undertaking negotiations. Such restrictions intrude upon the President's constitutional authority to direct the Nation's foreign policy negotiations;
• compel Executive branch personnel to testify before Congress, thereby interfering with the President's ability to supervise his subordinates;
• require the United States to vote against loans to specified countries (e.g. Laos) unless certain terms are met. These requirements intrude on the President's ability to conduct the Nation's foreign policy; and
• allow the Export-Import Bank to accept and retain payment or reimbursement for certain travel and subsistence expenses. The Administration's "Government-wide Ethics Act of 1989" (H.R. 2337) includes a provision for private reimbursement for travel and subsistence expenses that would apply to all agencies and includes appropriate controls. The piecemeal approach represented by this provision is, therefore, objectionable.

Finally, the Administration agrees with the objective of increased consideration of the environmental effects associated with MDB programs. However, the requirement for the United States to oppose MDB loans for which environmental assessments have not been publicly made available would be counterproductive. Such a requirement would isolate the United States and impair our ability to negotiate with other countries on environmental issues involving the MDBs.