put together by two different researchers, and scientists, and academicians from two different countries who then submit those grants to the AID. Mr. HYDE. The CDR, the cooperative development research entity, makes the grants upon recommendation by AID and we pay the money? Mr. BERMAN. Yes. The science advisor makes the decision on which of the many grants that are solicited and are received will be funded. Mr. HYDE. Thank you. VOTE ON THE BERMAN AMENDMENT Mr. HAMILTON. The Chair will put the question on the Berman amendment. All in favor say aye. [A chorus of ayes.] Mr. HAMILTON. Oppose no. [No response.] Mr. HAMILTON. The ayes have it, and the amendment is adopted. Mr. SMITH of Florida. Mr. Chairman. Mr. HAMILTON. Mr. Smith. Mr. SMITH of Florida. We have a vote which should probably take us until 11:30. I have a number of amendments, but I suggest that we just go over and vote and recess until 2:00. Mr. HAMILTON. I am informed that this vote is on final passage of a bill. I will leave it up to Chairman Fascell as to whether we come back, but we will recess at this point so that the members can vote. The staff will simply have to advise our offices, when and if, we will reconvene today. So the committee stands in recess. [Whereupon, at 11:12 a.m., the committee was recessed, subject to the call of the Chair.] FOREIGN ASSISTANCE LEGISLATION FOR FISCAL YEARS 1990-91 TUESDAY, JUNE 6, 1989 HOUSE OF REPRESENTATIVES, Washington, DC. The committee met in open markup session, at 2:24 p.m., in room 2172, Rayburn House Office Building, Hon. Dante B. Fascell (chairman) presiding. Chairman FASCELL. The committee will come to order. Let the Chair state that we have got two bills on suspension this afternoon. We also have a rewrite of the China resolution which will come up immediately after the last suspension. We have been working all day on getting an agreement on that resolution between the two parties and the Administration. We now have that agreement, so we are going to the Floor with that legislation. We will also continue markup tomorrow. We have got FSX and of course, a joint session with Prime Minister Bhutto tomorrow. The last word the Chair has received is that the S&L bill has been pulled because of some 50 witnesses before the Rules Committee and hundreds of amendments. I do not know what our capabilities are here, but we will do our best to see if we can finish this bill. So with that in mind, I would ask your indulgence. Mr. HOUGHTON. Mr. Chairman, would it be permissible for me to ask unanimous consent that I be allowed to submit but not read a statement into the record regarding the private sector revolving fund? Chairman FASCELL. Without objection, so ordered. [The statement follows:] STATEMENT ON TDP AMENDMENT - The Private Sector Revolving Fund and the Trade and Development Program have achieved great success since their creation in the early 1980's. The Revolving Fund and TDP are creative effective - and the numbers show a strong demand for each program's continued activities. TDP-funded services have generated over $1.2 billion in U.S. exports U.S. since the early 1980s. The rate of exports from 1987-1988 alone have been larger than generated over the entire life of the TDP program. TDP has focused on newly emerging markets such as pollution control and hazardous waste and telecommunications. Contractors who have done studies for TDP have reported $224 million worth of spin-off business directly attributable to TDP-funded work. Most importantly, TDP is a catalyst. It provides a contact point between U.S. suppliers overseas markets. TDP has put its limited resources to good use. The Revolving Fund also has proved to be an effective means for fostering sound economic development in Third World countries. The Revolving Fund provides loan guarantees to Third World financial institutions. In some cases, it gives direct loans to private businesses to meet this goal. In developing countries, the absence of a stable private business environment creates serious constraints to growth. Currency devalution, volatile inflation rates and political instability are the hallmark of many Third World economies. The Revolving Fund has been able to step in and provide the innovative financing mechanisms to energize stagnent economies. The Revolving Fund is a direct stimulus in excess of the $20 million in U.S. exports of goods and services. It has a failure rate of 2%. The value of a loan guarantee program like this cannot be underestimated. My issue is not with the programs but rather the move to transfer $5 million from the Private Sector Revolving Fund to TDP. I question diverting funds from quintessential long-term private assistance to short-term export enhancement. I hate to see a program providing a means for fostering sound development at the grassroots level in lesser developed countries short-changed in any way. Development will succeed if it comes from within the region and is embraced by local people. That is key to a healthy Third World and key to markets for U.S. goods and service. - Please let's be cautious when transferring funds from a program that clearly is an internal growth issue. This is the long-term direction toward which Third World countries must move if they ever are to become productive world citizens. Chairman FASCELL. When we last met, we were still working on Title VIII. Are there any further amendments to Title VIII? Mr. BROOMFIELD. Mr. Chairman. Chairman FASCELL. Mr. Broomfield. Mr. BROOMFIELD. I would like to reserve if I can an opportunity before the bill is finally passed to return for a moment possibly. I am not sure that I will offer it, but I would like to have that opportunity. TITLE IX Chairman FASCELL. Well, let us wait until Mr. Hamilton gets here and then you can decide. All right. Title IX has been designated. Are there amendments to Title IX? Mr. ROTH. Mr. Chairman. Chairman FASCELL. Mr. Roth. Mr. ROTH. Thank you, Mr. Chairman. I have an amendment at the desk. Chairman FASCELL. The clerks will distribute the amendment and the Chief of Staff will report it. Mr. ROTH. Mr. Chairman. Chairman FASCELL. Mr. Roth, your amendment is not at the desk. Have you got a copy of your amendment? Mr. ROTH. I am sorry, Mr. Chairman. I thought that it was at the desk. Chairman FASCELL. While they are getting that cleared up, would you mind if we go to another amendment? Mr. ROTH. Thank you, Mr. Chairman. Chairman FASCELL. Mr. Weiss. WEISS AMENDMENT-SUSPENSION OF OPIC PROGRAMS IN CHINA Mr. WEISS. Mr. Chairman, I have an amendment at the desk. Chairman FASCELL. The Chief of Staff will report the amend ment. Mr. INGRAM. Amendment offered by Mr. Weiss, "page 492, after line 3, insert the following new section- Chairman FASCELL. Without objection, further reading of the amendment will be dispensed with and printed in the record in full. [The amendment follows:] FORNAID47 [June 6, 1989] AMENDMENT TO THE COMMITTEE PRINT (dated 5/22/89) OFFERED BY MR. WEISS Page 492, after line 3, insert the following new section 903 and redesignate existing sections accordingly: 1 2 SEC. 903. OPIC PROGRAMS IN THE PEOPLE'S REPUBLIC OF CHINA. (a) SUPPRESSION OF DEMOCRATIC REFORM MOVEMENT. --The 3 Congress deplores the brutal suppression by the Government of 4 the People's Republic of China of the student-led democratic 5 reform movement in June 1989. 6 (b) PROHIBITION. --Therefore, the Overseas Private 7 Investment Corporation may not provide any insurance, 8 9 reinsurance, guarantee, financing, or other financial support with respect to the People's Republic of China during the 10 period specified in subsection (c). 11 (c) PERIOD OF PROHIBITION.--Subsection (b) applies during the period beginning on the date of enactment of this Act and 13 ending on September 30, 1991. 12 |