22 U.S.C. § 262k — Financial assistance to international fi-

Page 43 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262k–1 total energy in developing countries and all but a seventh in rural sectors; ‘‘(6) growing dependence of the world’s poor on wood for heating and cooking has forced the overcut- ting of forests and as a consequence erosion and loss of available agricultural land; and ‘‘(7) recent initiatives by the international finan- cial institutions to develop and utilize decentralized solar, hydro, biomass, geothermal, and wind energy should be significantly expanded to make renewable energy resources increasingly available to the world’s poor on a wide scale.’’ § 262k. Financial assistance to international fi- nancial institutions; considerations and cri- teria (a) Congressional declaration of intent United States active participation in inter- national financial institution activity is based on our national objective of furthering the eco- nomic 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 eco- nomic and financial system which is both free and stable. Therefore, it is the intent of the United States Congress that United States fi- nancial 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 depar- tures from a market-oriented economy. (b) Effect of country adjustment programs; mini- mization of projected adverse impacts; avoid- ance of government subsidization 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 re- view of loans, credits, or other utilization of the resources of their respective institutions, the ef- fect that country adjustment programs would have upon individual industry sectors and inter- national 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 sub- sidization of production and exports of inter- national commodities without regard to eco- nomic conditions in the markets for such com- modities. (c) Project proposals relating to mining, smelt- ing, refining, and fabricating of minerals and metal products 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 pro- posal 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 com- mercial lending services. (2) Analysis by the United States Bureau of Mines indicates that surplus capacity in the industry for the primary product of the de- fined project would exist over half the period of the economic life of the project because of projected world demand and capacity condi- tions. (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 substan- tial producer of such commodities. (d) International financial institutions The international financial institutions re- ferred to in subsections (a) and (b) are the Inter- national 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 Develop- ment Bank. (Pub. L. 99–88, title I, § 502, Aug. 15, 1985, 99 Stat. 330; Pub. L. 102–285, § 10(b), May 18, 1992, 106 Stat. 172.) 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 in- struct the United States Executive Directors of the International Bank for Reconstruction and Develop- ment, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the Asian Development Bank, the Inter-American In- vestment 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 mod- ernization of copper mining, smelting, and refining ca- pacity.’’ § 262k–1. Transparency of budgets (a) Limitation Beginning three years after September 30, 1996, the Secretary of the Treasury shall instruct the United States Executive Director of each inter- national financial institution to use the voice and vote of the United States to oppose any loan or other utilization of the funds of their respec- tive institution, other than to address basic human needs, for the government of any country which the Secretary of the Treasury deter- mines— (1) does not have in place a functioning sys- tem for reporting to civilian authorities au- dits of receipts and expenditures that fund ac- tivities of the armed forces and security forces; (2) has not provided to the institution infor- mation about the audit process requested by the institution.