for purposes of section 502B of the Foreign Assistance Act of 1961 (relating to governments which engage in a consistent pattern of gross violations of international recognized human rights).

(F) To the extent that defense articles or services for which a guarantee or insurance is provided under subparagraph (B) are used for a purpose other than anti-narcotics purposes, they may be used only for those purposes for which defense articles and defense services sold under the Arms Export Control Act (relating to the foreign military sales program) may be used under section 4 of such Act.

(G) As used in subparagraphs (B), (C), (D), and (F),42 the term "defense articles and services" means articles, services, and related technical data that are designated as defense articles and defense services pursuant to sections 38 and 47(7) of the Arms Export Control Act and listed on the United States Munitions List (part 121 of title 22 of the Code of Federal Regulations).

(7) 37 In no event shall the Bank have outstanding at any time in excess of 72 per centum of the limitation imposed by section 7 of this Act for such guarantees, insurance, credits or participation in credits with respect to exports of defense articles and services to countries which, in the judgment of the Board of Directors of the Bank, are less developed.

(8) 43 The Bank shall supplement but not compete with private capital and the programs of the Commodity Credit Corporation to ensure that adequate financing will be made available to assist the export of agricultural commodities, except that, consistent with section 2(bX1XA) of this Act, the Bank in assisting any such export transactions shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in Government-supported export financing, and shall, in cooperation with other appropriate United States Government agencies, seek to reach international agreements to reduce Government subsidized export financing. In order to carry out the purposes of this subsection, the Bank shall consult with the Secretary of Agriculture and where the Secretary of Agriculture has recommended against Bank financing of the export of a particular agricultural commodity, shall take such recommendation into consideration in determining whether to provide credit or other assistance for any export sale of such commodity, and shall consider the importance of agricultural commodity exports to the United States export market and the Nation's balance of trade in deciding whether or not to provide assistance under this subsection. The Bank shall include in the report to Congress under section 9(a) of this Act a description of the measures undertaken by it pursuant to this subsection.

(9) 44 (A) Except as provided in subparagraph (B), in no event shall the Bank guarantee, insure, or extend credit or participate in

42 Sec. 101(d) of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2495) struck out "this paragraph" and inserted in lieu thereof "subparagraphs (B), (C), (D), and (F)".

43 This par., originally added as par. (7) by sec. 1909 of Public Law 95-630 (92 Stat. 3725), was redesignated as par. (8) by sec. 619(d)2) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1261).

44 This par., originally added as par. (8) by sec. 1915 of Public Law 95-630 (92 Stat. 3727), was redesignated as par. (9) by sec. 619(d)1) of the Export-Import Bank Act Amendments of 1983

Continued

the extension of credit (a) in support of any export which would contribute to enabling the Government of the Republic of South Africa to maintain or enforce apartheid; (b) in support of any export to the Government of the Republic of South Africa or its agencies unless the President determines that significant progress toward the elimination of apartheid has been made and transmits to the Congress a statement describing and explaining that determination; or (c) in support of any export to other purchases in the Republic of South Africa unless the United States Secretary of State certifies that the purchaser has endorsed and has proceeded toward the implementation of the following principles: nonsegregation of the races in all work facilities; equal and fair employment for all employees; equal pay for equal work for all employees; initiation and development of training programs to prepare nonwhite South Africans for supervisory, administrative, clerical, and technical jobs; increasing the number of nonwhites in management and supervisory positions; a willingness to engage in collective bargaining with labor unions; and improving the quality of life for employees in such areas as housing, transportation, schooling, recreation, and health facilities.

(B) The Bank shall take active steps to encourage the use of its facilities to guarantee, insure, extend credit, or participate in the extension of credit to business enterprises in South Africa that are majority owned by South African blacks or other nonwhite South Africans. The certification requirement contained in clause (c) of subparagraph (A) shall not apply to exports to or purchases from business enterprises which are majority owned by South African blacks or other nonwhite South Africans.

(10) 45 (A) The Bank shall not, without a specific authorization by law, guarantee, insure, or extend credit (or participate in the extension of credit) to

(i) assist specific countries with balance of payments financing; or

(ii) assist (as the primary purpose of any such guarantee, insurance, or credit) any country in the management of its international indebtedness, other than its outstanding obligations to the Bank.

(B) Nothing contained in subparagraph (A) shall preclude guarantees, insurance, or credit the primary purpose of which is to support United States exports.

(11) 46 PROHIBITION RELATING TO ANGOLA.-Notwithstanding any determination by the President under paragraph (2), the Bank may not guarantee, insure, or extend credit (or participate in the extension of credit) in connection with any export of goods or service, except food or agricultural commodities, to the People's Republic of Angola until the President certifies to the Congress that no combatant forces or military advisors of the Republic of Cuba or of any

(title VI of Public Law 98-181; 97 Stat. 1261). It was subsequently redesignated as sec. (9)(A) by sec. 204 of the Comprehensive Anti-Apartheid Act of 1986 (Public Law 99-440; 100 Stat. 1096) which also substituted the words "Except as provided in subparagraph (B), in" in lieu of "In", and added subpar. (B).

45 Sec. 619(d)(3) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1261) added par. (10).

46 Sec. 9 of Public Law 99-472 (100 Stat. 1203) added par. (11).

other Marxist-Leninist country (as such term is defined in paragraph (2)(B)) remain in Angola.

(12) 47 PROHIBITION RELATING TO ANGOLA.-Notwithstanding any determination by the President under paragraph (2) or (11), the Bank may not guarantee, insure, or extend (or participate in the extension of) credit in connection with any export of any good (other than food or an agricultural commodity) or service to the People's Republic of Angola until the President certifies to the Congress that free and fair elections have been held in Angola in which all participants were afforded free and fair access, and that the government of Angola

(A) is willing, and is actively seeking, to achieve an equitable political settlement of the conflict in Angola, including free and fair elections, through a mutual cease-fire and a dialogue with the opposition armed forces;

(B) has demonstrated progress in protecting internationally recognized human rights, and particularly in

(i) ending, through prosecution or other means, involvement of members of the military and security forces in political violence and abuses of internationally recognized human rights;

(ii) vigorously prosecuting persons engaged in political violence who are connected with the government; and

(iii) bringing to justice those responsible for the abduction, torture, and murder of citizens of Angola and citizens of the United States; and

(C) has demonstrated progress in its respect for, and protection of

(i) the freedom of the press;
(ii) the freedom of speech;

(iii) the freedom of assembly;

(iv) the freedom of association (including the right to organize for political purposes);

(v) internationally recognized worker rights; and

(vi) other attributes of political pluralism and democra

cy. The President shall include in each report made pursuant to this paragraph a detailed statement with respect to each of the conditions set forth in this paragraph. This paragraph shall not be construed to impose any requirement with respect to Angola that is more restrictive than any requirement imposed by this section generally on all other countries.

(c)(1) 48 The Bank is authorized and empowered to charge against the limitations imposed by section 7 of this Act, not less than 25 per centum of the related contractual liability which the Bank incurs for guarantees, insurance, coinsurance, and reinsurance against political and credit risks of loss. The aggregate amount of guarantees, insurance, coinsurance, and reinsurance which may be charged on this fractional basis pursuant to this section shall not

47 Sec. 102 of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2495) added par. (12).

48 As amended and restated by sec. 6 of Public Law 93-646 (88 Stat. 2333 at 2335).

exceed $25,000,000,000 49 outstanding at any one time. Fees and premiums shall be charged in connection with such contracts commensurate, in the judgment of the Bank, with the risks covered.

(2) The Bank may issue such guarantees, insurance, coinsurance, and reinsurance to or with exporters, insurance companies, financial institutions, or others, or groups thereof, and where appropriate may employ any of the same to act as its agent in the issuance and servicing of such guarantees, insurance, coinsurance, and reinsurance, and the adjustment of claims arising thereunder. (3) 50 TRANSFERABILITY OF GUARANTEES.-With respect to medium-term and long-term obligation insured or guaranteed by the Bank after the date of the enactment of the Export-Import Bank Act Amendments of 1986, the Bank shall authorize the unrestricted transfer of such obligations by the originating lenders or their transferees to other lenders without affecting, limiting, or terminating the guarantee or insurance provided by the Bank.

(d) 51 (1) In carrying out its responsibilities under this Act, the Bank shall work to ensure that United States companies are afforded an equal and nondiscriminatory opportunity to bid for insurance in connection with transactions assisted by the Bank.

(2) In furtherance of such effort, the Chairman of the Bank shall review Bank policies and programs in regard to this issue, and in coordination with the United States Trade Representative and the appropriate agencies of the Department of State, the Department of the Treasury, and the Department of Commerce, undertake actions designed to promote equal and nondiscriminatory opportunities to bid for insurance in connection with all aspects of international trade activities.

(3) The Bank shall report to the Committee or Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate not later than May 15, 1984, regarding—

(A) the existing obstacles to equal and nondiscriminatory bidding for insurance related to transactions assisted by the Bank; (B) the efforts that the Bank has taken in addressing such problems; and

(C) recommendations for such legislative or administrative actions as the Bank considers necessary.

(e) 52 LIMITATION ON ASSISTANCE WHICH ADVERSELY AFFECT THE UNITED STATES.

(1) IN GENERAL.-The Bank may not extend any direct credit of financial guarantee for establishing or expanding production of any commodity for export by any country other than the United States, if

(A) the Bank determines that

49 Sec. 1(a) of Public Law 88-101 (77 Stat. 128), increased the sum to "$2,000,000,000" from $1,000,000,000; sec. 1(c) of Public Law 90-267 (82 Stat. 49) increased the sum to "$3,500,000,000"; sec. 1(b)(2) of Public Law 92-126 increased the sum to "$10,000,000,000"; sec. 6 of Public Law 93646 (88 Stat. 2333 at 2336) increased the sum to $20,000,000,000; and sec. 1903 of Public Law 95630 (92 Stat. 3724) increased the sum to $25,000,000,000.

so Sec. 10 of Public Law 99-472 (100 Stat. 1203) added par. (3).

$1 Sec. 617 of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98–181; 97 Stat. 1257) added subsec. (d).

52 Sec. 11 of Public Law 99-472 (100 Stat. 1203) added subsec. (e).

(i) the commodity is likely to be in surplus on world markets at the time the resulting commodity will first be sold; 53 or

(ii) the resulting production capacity is expected to compete with United States production of the same, similar, or competing commodity; and

(B) the Bank determines that the extension of such credit or guarantee will cause substantial injury to United States producers of the same, similar, or competing commodity.

(2) EXCEPTION.-Paragraph (1) shall not apply in any case where, in the judgment of the Board of Directors of the Bank, the short- and long-term benefits to industry and employment in the United States are likely to outweigh the short- and longterm 54 injury to United States producers and employment 54 of the same, similar, or competing commodity.

(3) 55 DEFINITION.-For purposes of paragraph (1)(B), the extension of any credit or guarantee by the Bank will cause substantial injury if the amount of the capacity for production established, or the amount of the increase in such capacity expanded, by such credit or guarantee equals or exceeds 1 percent of United States production.

(f) 56 INTEREST SUBSIDY PAYMENTS.

(1) PAYMENTS AUTHORIZED.-The Bank may enter into commitments to make payments to commercial lending institutions and other lenders, in such amounts as the Bank may determine to be appropriate, to provide a sufficient return on loans by such lenders (including loans guaranteed by the Bank) in support of United States exports (of goods or services) when financing at less than market rates in required for such exports in order to respond to subsidized financing offered by foreign export credit agencies.

(2) 57 PAYMENTS ALLOWED ONLY FROM FUNDS APPROPRIATED FOR SUCH PURPOSE.-The estimated aggregate amount of commitments entered into by the Bank under paragraph (1) in any fiscal year beginning after fiscal year 1986 may not exceed the amount of funds appropriated to the Bank for such purposes for such fiscal year.

53 Sec. 3304(a) of Public Law 100-418 (Omnibus Trade and Competitiveness Act of 1988; 102 Stat. 1384) inserted "commodity will first be sold" in lieu of "productive capacity is expected to become operative".

54 Sec. 3304(b) of Public Law 100-418 (102 Stat. 1384) inserted the text "short- and long-term" before "injury to United States producers", and "and employment" before "of the same, similar, or competing commodity".

55 Par. (3). was added by sec. 3304(c) of Public Law 100-418 (102 Stat. 1384).

56 Subsec. (f) was added by sec. 20 of Public Law 99-472 (100 Stat. 1209).

57 Sec. 101(a) of the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2493) struck out par. (2) and redesignated par. (3), (4), and (5), as (2), (3), and (4). Paragraph (2) formerly read as follows:

"(2) AUTHORITY TO MAKE PAYMENTS SUBJECT TO MINIMUM AMOUNT OF DIRECT LOAN AUTHORITY.-The authority to enter into commitments to make interest subsidy payments under paragraph (1) shall be effective for any fiscal year only if the aggregate principal amount of direct loans the Bank may obligate in such fiscal year is equal to or greater than $700,000,000.".