§262k — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

Direct the United States to put its money in world banks toward projects that help economic and social development, especially in poorer countries, and that support a free, stable global economy. The Treasury must tell U.S. representatives at those banks to look at how loans and use of funds will affect specific industries and world commodity markets. They must try to reduce harm to those industries and avoid government-subsidized production or exports when market conditions don’t support them. U.S. directors should vote against projects that add or expand mines, smelters, refineries, or metal factories if private lenders could fund them, if the U.S. Bureau of Mines finds there will be surplus capacity for more than half the project’s economic life, or if U.S. imports are less than 50% of U.S. production when the U.S. is a major producer. The covered institutions are: the International Monetary Fund (IMF), the International Bank for Reconstruction and Development and International Development Association (World Bank groups), the Inter‑American Development Bank, the Asian Development Bank, and the African Development Bank.

Title 22, §262k

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)United States active participation in international financial institution activity is based on our national objective of furthering the economic and social development of the nations of the world, in particular the developing nations. The attainment of this national objective is most effectively realized through a world economic and financial system which is both free and stable. Therefore, it is the intent of the United States Congress that United States financial assistance to the international financial institutions should be primarily directed to those projects that would not generate excess commodity supplies in world markets, displace private investment initiatives or foster departures from a market-oriented economy.

(b)The Secretary of the Treasury shall instruct the representatives of the United States to the international financial institutions described in subsection (d) to take into account in their review of loans, credits, or other utilization of the resources of their respective institutions, the effect that country adjustment programs would have upon individual industry sectors and international commodity markets in order to—

(1)minimize any projected adverse impacts on such sector or markets of making such loans, credits, or utilization of resources; and

(2)avoid whenever possible government subsidization of production and exports of international commodities without regard to economic conditions in the markets for such commodities.

(c)More specifically, the following criteria should be considered as a basis for a vote by the respective United States Executive Director to each of the international financial institutions described in subsection (d) against a project proposal involving the creation of new capacity or the expansion, improvement, or modification of mining, smelting, refining, and fabricating of minerals and metal products:

(1)Analysis shows that the risks, returns, and incentives of a project are such that it could be financed at reasonable terms by commercial lending services.

(2)Analysis by the United States Bureau of Mines indicates that surplus capacity in the industry for the primary product of the defined project would exist over half the period of the economic life of the project because of projected world demand and capacity conditions.

(3)United States imports of the commodity constitute less than 50 percent of the domestic production of the primary product in those cases where the United States is the substantial producer of such commodities.

(d)The international financial institutions referred to in subsections (a) and (b) are the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association, the Inter-American Development Bank, the Asian Development Bank, and the African Development Bank.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Change of Name

“United States Bureau of Mines” substituted for “Bureau of Mines” in subsec. (c)(2) pursuant to section 10(b) of Pub. L. 102–285, set out as a note under section 1 of Title 30, Mineral Lands and Mining. For provisions relating to closure and

Transfer of Functions

of the United States Bureau of Mines, see note set out under section 1 of Title 30, Mineral Lands and Mining. Copper Mining, Smelting, and Refining Pub. L. 99–88, title I, § 501, Aug. 15, 1985, 99 Stat. 329, provided that: “The Secretary of the Treasury shall instruct the United States Executive Directors of the International Bank for Re

Construction

and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the Asian Development Bank, the Inter-American Investment Corporation, the African Development Bank, and the African Development Fund to use the voice and vote of the United States to oppose any assistance by these institutions, using funds appropriated or made available pursuant to this Act or any other Act, for the production of any copper commodity for export or for the financing of the expansion, improvement, or modernization of copper mining, smelting, and refining capacity.”

§262k Financial Assistance to International Financial Institutions; Considerations and Criteria