[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 384 Reported in Senate (RS)]
Calendar No. 48
104th CONGRESS
1st Session
S. 384
_______________________________________________________________________
A BILL
To require a report on United States support for Mexico during its debt
crisis, and for other purposes.
_______________________________________________________________________
April 4 (legislative day, March 27), 1995
Reported with an amendment and an amendment to the title
Calendar No. 48
104th CONGRESS
1st Session
S. 384
To require a report on United States support for Mexico during its debt
crisis, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 10 (legislative day, January 30), 1995
Mr. Brown (for himself and Mr. Helms) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
April 4 (legislative day, March 27), 1995
Reported by Mr. Helms, with an amendment and an amendment to the title
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To require a report on United States support for Mexico during its debt
crisis, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. REPORT REQUIRED.</DELETED>
<DELETED> (a) Report.--Not later than March 1, 1995, and every six
months thereafter, the President shall transmit a report to the
appropriate congressional committees concerning all United States
Government loans, credits, guarantees, and short-term and long-term
currency swaps with Mexico.</DELETED>
<DELETED> (b) Contents of Report.--The report described in
subsection (a) shall include the following:</DELETED>
<DELETED> (1) A breakdown of all outstanding United States
Government loans, credits, and guarantees provided to the
Government of Mexico.</DELETED>
<DELETED> (2) A detailed list of all Federal Reserve
currency swaps designed to support indebtedness of the
Government of Mexico, and the cost or benefit to the United
States Treasury from each such transaction.</DELETED>
<DELETED> (3) A description of any payments by creditors of
Mexican petroleum companies into the petroleum finance facility
established to ensure repayment of United States loans or
guarantees.</DELETED>
<DELETED> (4) A description of any disbursement by the
United States Government from the petroleum finance
facility.</DELETED>
<DELETED> (5) Once payments have been diverted from PEMEX to
the United States Treasury through the petroleum finance
facility, a description of the status of petroleum deliveries
to those customers whose payments were diverted.</DELETED>
<DELETED> (6) A description of the risk factors used in
calculations concerning Mexican repayment of
indebtedness.</DELETED>
<DELETED> (7) A statement of the progress the Government of
Mexico has made in reforming its currency and establishing an
independent central bank or currency board.</DELETED>
<DELETED> (8) A description of specific actions taken by the
Government of Mexico to further privatize the economy of
Mexico.</DELETED>
<DELETED>SEC. 2. PRESIDENTIAL CERTIFICATION.</DELETED>
<DELETED> Notwithstanding any other provision of law, before
extending any loan, credit, guarantee, or arrangement for a swap of
currencies to Mexico through any United States Government monetary
facility, the President shall certify to the appropriate congressional
committees that--</DELETED>
<DELETED> (1) there is no projected cost to the United
States from the proposed loan, credit, guarantee, or currency
swap;</DELETED>
<DELETED> (2) all loans, credits, guarantees, and currency
swaps are adequately collateralized to ensure that United
States funds will be repaid;</DELETED>
<DELETED> (3) the Government of Mexico has undertaken
effective efforts to establish an independent central bank or
an independent currency control mechanism; and</DELETED>
<DELETED> (4) Mexico has in effect a significant economic
reform effort.</DELETED>
<DELETED>SEC. 3. DEFINITION.</DELETED>
<DELETED> As used in this Act, the term ``appropriate congressional
committees'' means the Committees on Appropriations, Ways and Means,
and International Relations of the House of Representatives and the
Committees on Appropriations, Finance, and Foreign Relations of the
Senate.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mexican Debt Disclosure Act of
1995''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) Mexico is an important neighbor and trading partner of
the United States;
(2) on January 31, 1995, the President approved a program
of assistance to Mexico, in the form of swap facilities and
securities guarantees in the amount of $20,000,000,000, using
the Exchange Stabilization Fund;
(3) the program of assistance involves the participation of
the Federal Reserve System, the International Monetary Fund,
the Bank for International Settlements, the World Bank, the
Inter-American Development Bank, the Bank of Canada, and
several Latin American countries;
(4) the involvement of the Exchange Stabilization Fund and
the Federal Reserve System means that United States taxpayer
funds will be used in the assistance effort to Mexico;
(5) assistance provided by the International Monetary Fund,
the World Bank, and the Inter-American Development Bank may
require additional United States contributions of taxpayer
funds to those entities;
(6) the immediate use of taxpayer funds and the potential
requirement for additional future United States contributions
of taxpayer funds necessitates Congressional oversight of the
disbursement of funds; and
(7) the efficacy of the assistance to Mexico is contingent
on the pursuit of sound economic policy by the Government of
Mexico.
SEC. 3. PRESIDENTIAL REPORTS.
(a) Reporting Requirement.--Not later than June 30, 1995, and every
six months thereafter, the President shall transmit a report to the
appropriate congressional committees concerning all United States
Government guarantees to, and short-term and long-term currency swaps
with, Mexico.
(b) Contents of Reports.--Each report described in subsection (a)
shall contain a description of the following actions taken, or economic
situations existing, during the preceding six month period or, in the
case of the initial report, during the period beginning on the date of
enactment of this Act:
(1) Changes in wage, price, and credit controls in the
Mexican economy.
(2) Changes in Mexican taxation policy.
(3) Specific actions taken by the Government of Mexico to
further privatize the economy of Mexico.
(4) Actions taken by the Government of Mexico in the
development of regulatory policy that significantly affected
the performance of the Mexican economy.
(5) Consultations concerning the program approved by the
President, including advice on economic, monetary, and fiscal
policy, held between the Government of Mexico and the
Department of the Treasury and the conclusions of any periodic
reviews undertaken by the International Monetary Fund pursuant
to the Fund's loan agreements with Mexico.
(6) All outstanding United States Government loans,
credits, and guarantees provided to the Government of Mexico,
set forth by category of financing.
(7) The progress the Government of Mexico has made in
stabilizing the peso and establishing an independent central
bank or currency board.
(c) Summary of Treasury Department Reports.--In addition to the
information required to be included under subsection (b), each report
required under this section shall contain a summary of the information
contained in all reports submitted under section 4 during the period
covered by the report required under this section.
SEC. 4. REPORTS BY THE SECRETARY OF THE TREASURY.
(a) Reporting Requirement.--Beginning on the last day of the first
month which begins after the date of enactment of this Act, and on the
last day of every month thereafter, the Secretary of the Treasury shall
transmit a report to the appropriate congressional committees
concerning all United States Government guarantees to, and short-term
and long-term currency swaps with, Mexico.
(b) Contents of Reports.--Each report described in subsection (a)
shall include a description of the following actions taken, or economic
situations existing, during the month in which the report is required
to be submitted:
(1) The current condition of the Mexican economy.
(2) The reserve positions of the Mexican Central Bank and
data relating to the functioning of Mexican monetary policy.
(3) The amount of any funds disbursed from the Exchange
Stabilization Fund pursuant to the approval of the President
issued on January 31, 1995.
(4) The amount of any funds disbursed from the Federal
Reserve pursuant to the approval of the President issued on
January 31, 1995.
(5) Financial transactions, both inside and outside of
Mexico, made during the reporting period involving funds
disbursed to Mexico from the Exchange Stabilization Fund or
proceeds of Mexican Government securities guaranteed by the
Exchange Stabilization Fund.
(6) All outstanding Treasury guarantees and short-term and
medium-term currency swaps provided to the Government of
Mexico, set forth by category of financing.
(7) All outstanding Federal Reserve currency swaps provided
to the Banco de Mexico and the rationale for, and any expected
costs of, such transactions.
(8) The amount of payments made by customers of Mexican
petroleum companies that have been deposited in the account at
the Federal Reserve Bank of New York established to ensure
repayment of United States guarantees or swaps.
(9) Any set-off by the Federal Reserve Bank of New York
against funds in the account of the Bank established to ensure
repayment of United States guarantees or swaps.
(10) To the extent such information is available, once
there has been a set-off by the Federal Reserve Bank of New
York, any interruption in deliveries of petroleum products to
existing customers whose payments were set-off.
(11) The interest rates and fees charged to compensate the
Department of the Treasury for the risk of providing financing.
SEC. 5. TERMINATION OF REPORTING REQUIREMENTS.
The requirements of sections 3 and 4 shall terminate on the date
that the Government of Mexico has paid all obligations with respect to
swap facilities and guarantees of securities made available under the
program approved by the President on January 31, 1995.
SEC. 6. PRESIDENTIAL CERTIFICATION.
Notwithstanding any other provision of law, before extending any
guarantee or swap of currencies to Mexico through the Exchange
Stabilization Fund or the Federal Reserve under the program approved by
the President on January 31, 1995, the President shall certify to the
appropriate congressional committees that--
(1) there is no projected cost (as defined in the Credit
Reform Act of 1990) to the United States from the proposed
guarantee or currency swap;
(2) the proposed guarantee or currency swap is adequately
backed to ensure that United States funds will be repaid;
(3) the Government of Mexico is making progress in ensuring
an independent central bank or an independent currency control
mechanism; and
(4) Mexico has in effect a significant economic reform
effort.
SEC. 7. REPORT ON INVOLVEMENT BY SENIOR MEXICAN GOVERNMENT OFFICIALS IN
ILLEGAL DRUG TRAFFICKING.
(a) Report.--Not later than 30 days after the date of enactment of
this Act, the President shall transmit a report to the appropriate
congressional committees setting forth all information available to the
United States Government with respect to the involvement, since March
1, 1991, by senior officials of the Government of Mexico, their
relatives, and close associates, including any involvement by
Presidents of Mexico, cabinet ministers, and military officers, in the
illegal trafficking in controlled substances (as defined in section
102(6) of the Controlled Substances Act (21 U.S.C. 802(6)) or in any
act to aid or abet such illegal trafficking.
(b) Definitions.--As used in this section:
(1) Aid or abet.--The phrase ``aid or abet'' includes any
act to facilitate illegal trafficking in controlled substances,
including any solicitation or receipt of anything of value in
consideration of aiding a person to engage in illegal
trafficking of such substances.
(2) Trafficking.--The term ``trafficking'' means
transporting, transferring, or otherwise disposing of, to
another, as consideration for anything of value, or making or
obtaining control of with the intent to so transport, transfer,
or dispose of.
SEC. 8. DEFINITION.
As used in this Act, the term ``appropriate congressional
committees'' means the Committees on International Relations and
Banking and Financial Services of the House of Representatives and the
Committees on Foreign Relations and Banking, Housing and Urban Affairs
of the Senate.
Amend the title so as to read: ``A bill to require reports on
United States support for Mexico during its debt crisis, and for other
purposes.''.