maintenance of high levels of employment and real income to the increased development of the productive resources of the United States. To meet this objective in all its programs,11 the ExportImport Bank is directed, in the exercise of its functions, to provide guarantees, insurance, and extensions of credit at rates and on terms and other conditions which are fully 12 competitive with the Government-supported rates and terms and other conditions available for the financing of exports of goods and services 13 from the principal countries whose exporters compete with United States exporters. The Bank 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. 14 The Bank shall, on an annual basis, 15 report to the appropriate committees of Congress its actions in complying with these directives. In this report the Bank shall include a survey of all other major export-financing facilities available from other governments and government-related agencies through which foreign exporters compete with United States exporters and indicate in specific terms the ways in which the Bank's rates, terms, and other conditions compare with those offered from such other governments directly or indirectly. Further the Bank shall at the same time survey a representative number of United States exporters and United States commercial lending institutions which provide export credit to determine their experience in meeting financial competition from other countries whose exporters compete with United States exporters. The results of this survey shall be included as part of the annual report 15 required by this subparagraph. The Bank shall also include in the annual report 15 a description of each loan by the Bank involving the export of any product or service related to the production, refining, or transportation of any type of energy or the development of any energy resources with a statement assessing the impact, if any, on the availability of such products, services, or energy supplies thus developed for use within the United States.

(B) It is further the policy of the United States that loans made by the Bank in all its programs shall bear interest at rates determined by the Board of Directors, consistent with the Bank's mandate to support United States exports at rates and on terms and conditions which are fully competitive with exports of other countries, and consistent with international agreements. For the purpose of the preceding sentence, rates and terms and conditions need not be identical in all respects 16 to those offered by foreign

11 Sec. 612(a)(1) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1255) added the words "in all its programs".

12 Sec. 612(a)(2) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1255) added the word "fully".

13 Sec. 616(a)(2) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1255) added the words "of goods and services".

14 The words to this point beginning with "and shall, in cooperation...

1 of Public Law 95-143 (91 Stat. 1210).

were added by sec.

15 This requirement was altered from a semiannual report to an annual report by sec. 210 of Public Law 96-470 (94 Stat. 2245).

16 Sec. 5 of Public Law 99-472 (100 Stat. 1201) substituted the words "identical in all respects" in lieu of the word "equivalent".

countries, but should be established so that the effect of such rates, terms, and conditions for all the Bank's programs, including those for small businesses and for medium-term financing, will be to neutralize the effect of such foreign credit on international sales competition. The Bank shall consider its average cost of money as one factor in its determination of interest rates, where such consideration does not impair the Bank's primary function of expanding United States exports through fully competitive financing. The Bank may not impose a credit application fee unless (i) the fee is competitive with the average fee charged by the Bank's primary foreign competitors, and (ii) the borrower or the exporter is given the option of paying the fee at the outset of the loan or over the life of the loan and the present value of the fee determined under either such option is the same amount.17 It is also the policy of the United States 18 that the Bank in the exercise of its functions should supplement and encourage, and not compete with, private capital; that the Bank shall accord equal opportunity to export agents and managers, independent export firms, export trading companies, 19 and small commercial banks in the formulation and implementation of its programs; 20 that the Bank should give emphasis to assisting new and small business entrants in the agricultural export market, and shall, in cooperation with other relevant Government agencies, including the Commodity Credit Corporation, develop a program of education to increase awareness of export opportunities among small agribusinesses and cooperatives, 21 that loans, so far as possible consistent with the carrying out of the purposes of subsection (a) of this section, shall generally be for specific purposes, and, in the judgment of the Board of Directors, offer reasonable assurance of repayment; and that in authorizing any loan or guarantee, the Board of Directors shall take into account any serious adverse effect of such loan or guarantee on the competitive position of United States industry, the availability of materials which are in short supply in the United States, and employment in the United States, and shall give particular emphasis to be objective of strengthening the competitive position of United States exporters and thereby of expanding total United States exports. Only in cases where the President determines that such action would be in the national interest where such action would clearly and importantly advance United States policy in such areas

17 The words to this point beginning with "The Bank may not impose . . ." were added by sec. 3 of Public Law 99-472 (100 Stat. 1200).

18 Sec. 612(b) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98181; 97 Stat. 1255) amended and restated subpar. (B) to this point. The text previously read as follows:

"(B) It is further the policy of the United States that loans made by the Bank shall bear interest at rates determined by the Board of Directors of the Bank, taking into consideration the average cost of money to the Bank as well as the Bank's mandate to support United States exports at rates and on terms and conditions which are competitive with exports of other countries;".

19 Sec. 612(c) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98181; 97 Stat. 1255) added the words "export trading companies,".

20 Sec. 618(a)(1) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1258) struck out text which previously appeared at this point concerning the Bank's policy towards small business concerns. See sec. 2(b)(1)E) below for new text regrading this subject.

21 This phrase, from the point of the last semicolon, was added by sec. 1916 of Public law 95630 (92 Stat. 3727).

as international terrorism, nuclear proliferation, environmental protection and human rights, should the Export-Import Bank deny applications for credit for nonfinancial or noncommercial considerations. 22

(C) 23 Consistent with the policy of section 501 of the Nuclear Non-Proliferation Act of 1978 and section 119 of the Foreign Assistance Act of 1961, the Board of Directors shall name an officer of the Bank whose duties shall include advising the President of the Bank on ways or promoting the export of goods and services to be used in the development, production, and distribution of nonnuclear renewable energy resources, disseminating information concerning export opportunities and the availability of Bank support for such activities, and acting as a liaison between the Bank and the Department of Commerce and other appropriate departments and agencies.

(D) 24 (i) It is further the policy of the United States to foster the delivery of United States services in international commerce. In exercising its powers and functions, the Bank shall give full and equal consideration to making loans and providing guarantees for the export of services (independently, or in conjunction with the export of manufactured goods, equipment, hardware or other capital goods) consistent with the Bank's policy to neutralize foreign subsidized credit competition and to supplement the private capital market.

(ii) The Bank shall include in its annual report a summary of its programs regarding the export of services.

(E) 25 (i)(I) It is further the policy of the United States to encourage the participation of small business in international commerce. (II) In exercising its authority, the Bank shall develop a program which gives fair consideration to making loans and providing guarantees for the export of goods and services by small businesses.

(ii) It is further the policy of the United States that the Bank shall give due recognition to the policy stated in section 2(a) of the Small Business Act that "the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns in order to preserve free competitive enterprise". (iii) In furtherance of this policy, the Board of Directors shall designate an officer of the Bank who

(I) shall be responsible to the President of the Bank for all matters concerning or affecting small business concerns; and (II) among other duties, shall be responsible for advising small business concerns of the opportunities for small business concerns in the functions of the Bank and for maintaining liaison with the Small Business Administration and other departments and agencies in matters affecting small business concerns.)

22 Sec. 1904 of Public Law 95-630 (92 Stat. 3724) struck out a phrase concerning human rights, which had been added by sec. 2 of Public Law 95-143 (91 Stat. 1210), and substituted the words to this point beginning with "and shall give particular emphasis to".

23 Clause (C) was added by sec. 1907 of Public Law 95-630 (92 Stat. 3725).

24 Sec. 616(a)(3) of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1257) added subpar. (D).

25 Sec. 618 of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-181; 97 Stat. 1258) added subpars. (E) and (F).

(iv) The Director appointed to represent the interests of small business under section 3(c) of this Act shall ensure that the Bank carries out its responsibilities under clauses (ii) and (iii) of this subparagraph and that the Bank's financial and other resources are, to the maximum extent possible, appropriately used for small business needs.

(v) To assure that the purposes of clauses (i) and (ii) of this subparagraph are carried out, the Bank shall make available, from the aggregate loan, guarantee, and insurance authority available to it, an amount to finance exports by small business concerns (as defined under section 3 of the Small Business Act) which shall be not less than

(1) 6 per centum of such authority for fiscal year 1984;

(II) 8 per centum of such authority for fiscal year 1985; and (III) 10 per centum of such authority for fiscal year 1986 and thereafter.

(vi) The Bank shall utilize the amount set-aside pursuant to clause (v) of this subparagraph to offer financing for small business exports on terms which are fully competitive with regard to interest rates and with regard to the portion of financing which may be provided, guaranteed, or insured. Financing under this clause (vi) shall be available without regard to whether financing for the particular transaction was disapproved by any other Federal agency. (vii)(I) The Bank shall utilize a part of the amount set aside pursuant to clause (v) to provide lines of credit or guarantees to consortia of small or medium size banks, export trading companies, State export finance agencies, export financing cooperatives, small business investment companies (as defined in section 103 of the Small Business Investment Act of 1958), or other financing institutions or entities in order to finance small business exports.

(II) Financing under this clause (vii) shall be made available only where the consortia or the participating institutions agree to undertake processing, servicing, and credit evaluation functions in connection with such financing.

(III) To the maximum extent practicable, the Bank shall delegate to the consortia the authority to approve financing under this clause (vii).

(IV) In the administration of the program under this clause (vii), the Bank shall provide appropriate technical assistance to participating consortia and may require such consortia periodically to furnish information to the Bank regarding the number and amount of loans made and the creditworthiness of the borrowers.

(viii) In order to assure that the policy stated in clause (i) is carried out, the Bank shall promote small business exports and its small business export financing programs in cooperation with the Secretary of Commerce, the Office of International Trade of the Small Business Administration, and the private sector, particularly small business organizations, State agencies, chambers of commerce, banking organizations, export management companies, export trading companies and private industry.

(ix) 26 The Bank shall provide, through creditworthy trade associations, export trading companies, State export finance companies,

26 Sec. 6 of Public Law 99-472 (100 Stat. 1201) added clause (ix).

export finance cooperatives, and other multiple-exporter organizations, medium-term risk protection coverage for the members and clients of such organizations. Such coverage shall be made available to each such organization under a single risk protection policy covering its members or clients. Nothing in this provision shall be interpreted as limiting the Bank's authority to deny support for specific transactions or to disapprove a request by such an organization to participate in such coverage.

(F) 25 Consistent with international agreements, the Bank shall urge the Foreign Credit Insurance Association to provide coverage against 100 per centum of any loss with respect to exports having a value of less than $100,000.

(G) 27 Participation in or access to long-, medium-, and shortterm financing, guarantees, and insurance provided by the Bank shall not be denied solely because the entity seeking participation or access is not a bank or is not a United States person.

(2) 28 PROHIBITION ON AID TO MARXIST-LENINIST COUNTRIES.—

(A) IN GENERAL.-The Bank in the exercise of its functions shall not guarantee, insure, extend credit, or participate in the extension of credit

(i) in connection with the purchase or lease of any product by a Marxist-Leninist country, or agency or national thereof; or

(ii) in connection with the purchase or lease of any product by any other foreign country, or agency or national thereof, if the product to be purchased or leased by such other country, agency, or national is, to the knowledge of the Bank, principally for use in, or sale or lease to, a Marxist-Leninist country.

(B) MARXIST-LENINIST COUNTRY DEFINED.—

(i) IN GENERAL.-For the purposes of this paragraph, the term "Marxist-Leninist country" means any country which

(I) maintains a centrally planned economy based on the principles of Marxist-Leninism, or

(II) is economically and militarily dependent on the Union of Soviet Socialist Republics or on any other Marxist-Leninist country.

(ii) SPECIFIC COUNTRIES DEEMED TO BE MARXIST-LENINIST.-Unless otherwise determined by the President in the manner provided in subparagraph (C), the following countries are deemed to be Marxist-Leninist countries for purposes of this paragraph:

Cambodian People's Republic.

Cooperative Republic of Guyana.
Czechoslovak Socialist Republic.

Democratic People's Republic of Korea.
Democratic Republic of Afghanistan.

Estonia.

German Democratic Republic.

27 Sec. 7 of Public Law 99-472 (100 Stat 1201) added subpar. (G).

28 As amended and restated by sec. 8 of Public Law 99-472 (100 Stat. 1201).